Xingfa Group recently received an investor investigation from institutions including Zhongtai Securities and Huachuang Securities, responding to questions on its first three quarters' performance, changes in phosphate rock profitability, sulfur cost response measures, and progress on projects under construction.
Revenue Grows in First Three Quarters, Profit Declines Year-on-Year. In January–September 2026, the company reported revenue of RMB 25.902 billion, up 8.92% year-on-year, and net profit attributable to shareholders of RMB 1.161 billion, down 11.90% year-on-year. Revenue growth alongside profit decline was mainly due to lower profitability in the phosphate rock and phosphate fertiliser segments and increased exchange losses year-on-year.
Phosphate Rock Output and Sales Decline, Resource Integration Continues. In the first three quarters of 2026, affected by policy and market factors, phosphate rock output declined year-on-year; at the same time, overall operating rates in the downstream phosphate fertiliser industry remained low, and the company's phosphate rock sales fell accordingly, reducing profit contribution. The company stated it will continue to advance phosphate rock resource acquisition and integration. In September 2026, associate company Yuan'an Xinghua Mining obtained the mining license for the Yangliudong phosphate mine, which has a designed capacity of 4 million t/a and is expected to begin construction within the year; the Qiaogou phosphate mine under subsidiary Qiaogou Mining, with a designed capacity of 2.8 million t/a, is currently undergoing mining engineering construction.
Sulfur Price Surge Raises Costs, Multiple Measures Taken. In the first three quarters of 2026, sulfur market prices rose sharply, significantly increasing the company's procurement costs. In response, the company has adopted four measures: optimizing procurement management and expanding sourcing channels through multiple channels and methods to smooth costs; advancing technical upgrades to reduce unit consumption and strengthen by-product recovery and utilization; optimizing production scheduling and adjusting the acid mix structure to increase the share of thermal phosphoric acid substitution; and developing a circular economy for sulfur resources to fundamentally reduce reliance on external purchases. The company's wholly-owned subsidiary Yidu Xingfa plans to invest RMB 1.436 billion to build a 2 million t/a phosphogypsum-to-acid project, which upon completion will produce 790,000 t/a of industrial sulfuric acid and 750,000 t/a of cement clinker, effectively addressing phosphogypsum storage and disposal pressure and reducing dependence on purchased sulfur.
Phosphorus Pentasulfide Capacity Enters Commissioning. The company's 10,000 t/a phosphorus pentasulfide capacity (supported by 30,000 t/a high-purity yellow phosphorus) has now entered the commissioning stage, with the first batch of products expected to be produced late this month. The company is actively advancing customer qualification.
Glyphosate Prices Edge Up. Current glyphosate market prices have risen slightly compared with Q3 2026. The company stated it will take into account raw material costs, market supply and demand, and other factors, strengthen communication with the industry, and jointly promote healthy industry development.
Phosphorus Flame Retardant Project Enters Capacity Ramp-Up. The 35,000 t/a phosphorus flame retardant capacity of the company's controlled subsidiary Yuan'an Xinghua Phosphorus Chemical has been completed and commissioned and is currently in the capacity ramp-up phase. Main products include BDP, TEPI, DOPO, and DDPS.
