Dear shareholders:
Looking Back at 2025: Consolidating Safe Operations, Pursuing Market Expansion and Cost Reduction in Parallel
Over the past year, China’s economy has advanced steadily on the track of high-quality development, with the foundational role of the agricultural sector continuing to strengthen. Domestically, the fertilizer industry underwent continuous optimisation through structural adjustments, while the chemical industry encountered structural development opportunities. In the face of a complex and ever-changing market environment, the Company consistently prioritised safe and stable operations, intensifying efforts to expand the market, enhance profitability and reduce costs. By strengthening production and sales coordination and cost control, the Company maintained solid profitability, recording a net profit attributable to Owners of the Company of RMB974 million for the reporting period. Based on the Group’s robust financial position and our commitment to rewarding our shareholders, the Board has proposed a final dividend of RMB 0.112 per share (tax inclusive) for the year 2025, maintaining a stable payout ratio to meaningfully reciprocate the trust and support of all our shareholders.
Governance Enhancement: Improving Governance Structure, Empowering Informed Decision-making??
In 2025, the Board diligently fulfilled its duties and continued to refine the Company’s governance framework. Through amendments to the Company’s articles of association, we abolished the supervisory board, restructured the Board’s composition, and integrated supervisory functions into the Board’s Audit Committee. A female member was appointed to the Board’s Nomination Committee, effectively enhancing the diversity and inclusiveness of our governance structure. A multi-faceted support system for directors’ performance was established, encompassing information sharing, research and communication, preliminary decision-making review, and capability enhancement. This framework leverages the strategic insights and industry experience of our directors to empower the Company’s scientific decision-making and long-term, high-quality development.
Outlook: Seizing Strategic Opportunities, Focusing on Green Transformation
Global fertiliser demand is expected to grow steadily in line with agricultural production needs, the chemical industry is poised for a moderate recovery, and the benefits of industrial policies supporting the Hainan Free Trade Port continue to unfold. This provides solid policy support and development opportunities for the Company to leverage its advantageous port location, assess the situation within a complex international environment, expand its logistics and trading businesses, and lay the groundwork for a green chemical industry. The Company will focus on the direction of green and low-carbon transformation, concentrating on optimising and enhancing existing industries while strengthening its reserves of cutting-edge technologies in new sectors. We will continue to enhance our core competitiveness and embark on a new journey to build a world-class green chemical technology company.
Finally, on behalf of the Board, I would like to express our heartfelt gratitude to all shareholders for their continued trust and support, and to the management team and all employees for their dedication, hard work and invaluable contributions. In 2026, we will remain committed to fulfilling our responsibilities to our shareholders, to society and to our employees, driving the Company towards stable and sustained high-quality development.
Hou Xiaofeng
Chairman
