The board of directors of China XLX Fertiliser Ltd. inform shareholders of the company and potential investors that the net profit of the Group for the year ended 31 December 2021 is expected to increase by no less than 200% as compared to that of the year before. The increase in the net profit of the Group was mainly because: 1. the Group took advantage of its leading status in the chemical fertiliser industry to drive the performance of various chemical products. The simultaneous development of fertilisers and chemicals was conducive to the synergistic development of the industrial chain and to steady growth in performance; 2. the Group utilized the base layout and gave full play to flexibility adjustment, which ensured maximum utilization of resources.

The Group also continuously optimized and upgraded production technology, enhanced technological innovation, and strengthened the advantage of "low cost + differentiation", thereby achieving high-quality development of the Group; 3. the rising prices of international energy and food drove up the prices of fertilisers and chemical products, which significantly benefitted the main products of the Group, including melamine, furfuryl alcohol and methanol.