China Heart Link Chemical Fertilizer (01866) issued an announcement. In the first quarter of 2024, the supply pattern will be relaxed, the raw coal price...
According to the Zhitong Finance App, China Heart Link Fertilizer (01866) issued an announcement. In the first quarter of 2024, the supply pattern was relaxed, raw carbon prices weakened, exports were affected less than expected by policies, and prices of coal chemical-related products declined accordingly. Affected by this factor, the Group's unaudited consolidated revenue for the first quarter of 2024 decreased by approximately RMB 529 million, or 8%, from approximately RMB 6.279 billion in the first quarter of 2023 to approximately RMB 5.75 billion. Although the overall gross profit was reduced due to the decline in product prices, the Group increased the promotion of high-efficiency fertilizers and differentiated products by strengthening product innovation and technology research and development to ensure a steady rise in gross margin levels. Among them, the gross margin of the leading product urea remained stable, and the gross margin of compound fertilizer and chemical products showed an upward trend, and the performance indicators were in line with expectations.
In order to further enhance market competitiveness, the Group strengthened the construction of research platforms and R&D systems to promote a new differentiated fertilizer strategy, leading to an increase in R&D investment and marketing expenses, which affected the Group's unaudited comprehensive net profit for the first quarter of 2024 to a decrease of about RMB 79 million or 17% from about RMB 462 million in the first quarter of 2023 to about RMB 383 million. Total unaudited overall revenue attributable to parent company owners decreased by approximately RMB 51 million or 15% to approximately RMB 282 million from approximately RMB 333 million in the first quarter of 2023.