On the evening of April 21, Stanley Agricultural Group (002588) released its 2025 financial report and Q1 2026 report. The integration of the entire phosphorus chemical industry chain became the core engine of performance. In 2025, the company's revenue was 12.283 billion yuan (+19.69%), and net profit attributable to shareholders was 1.033 billion yuan (+25.07%), breaking the 1 billion yuan mark for the first time; Q1 2026 continued this strong momentum, with revenue of 4.060 billion yuan (+19.22%) and net profit of 342 million yuan (+18.54%), achieving steady growth amidst a differentiated landscape in the chemical industry.

Full integration of the phosphorus chemical chain highlights advantages of vertical integration

2025 marked the inaugural year of the realization of Stanley's phosphorus chemical strategy. The phosphorus chemical project at Hubei Songzi New Materials Company achieved full production, with core facilities such as phosphate fertilizer and refined phosphoric acid operating at full capacity, successfully closing the loop of the entire "phosphate rock—phosphoric acid—phosphate ammonium—compound fertilizer" industry chain.

· Production Capacity Scale: The two bases, Lihe Fertilizer and Songzi New Materials, have a combined annual capacity of 1 million tons of phosphate ammonium, 100,000 tons of industrial-grade monoammonium phosphate, and 100,000 tons of refined phosphoric acid.

· Cost Barriers: The self-sufficiency rate of upstream raw materials has significantly increased, effectively hedging against price volatility risks for bulk raw materials like phosphate rock and sulfur, thereby notably enhancing the profit stability of the chemical sector.

· Performance Contribution: Revenue from new fertilizers and phosphorus chemical products reached 3.712 billion yuan, a surge of 93.24% year-on-year. The revenue share jumped from 18.7% to 30.2%, becoming a second growth curve.

Rise in both volume and profit for chemical business, driven by exports and regional markets

· Optimization of Product Structure: Sales of traditional compound fertilizer were 3.4783 million tons (+3.94%); external sales of chemical products such as phosphate fertilizer and refined phosphoric acid expanded significantly. The Central China region benefited from the production launch of the Songzi project, with revenue growing by 34.13%; overseas markets saw significant expansion results, with revenue surging by 57.13%.

· Improvement in Profit Quality: Net cash flow from operating activities was 1.241 billion yuan, a sharp increase of 158.09% year-on-year; the asset-liability ratio was 46.30%, indicating a healthy financial structure. The company plans to distribute a cash dividend of 2.70 yuan per 10 shares, with a total annual dividend of approximately 363 million yuan, representing a payout ratio of nearly 35%.

Accelerated implementation of new chemical projects, layout in new energy materials sector

The company continues to increase investment in chemical capacity and high-end transformation, with several `key` projects progressing smoothly:

· Guangxi Base: The annual production of 1 million tons of new green fertilizer project is 85% complete, with production imminent in 2026.

· High-end Chemicals: The 60,000 tons/year high-end water-soluble fertilizer project at Lihe Fertilizer is under construction.

· New Energy Materials: The iron phosphate project at the Songzi base and the phosphogypsum comprehensive resource utilization project are steadily advancing. The tripartite chemical industry landscape of "compound fertilizer + phosphorus chemical + new energy materials" is taking shape rapidly.

As the synergistic effects of the phosphorus chemical industry chain continue to be released and new energy material projects land, Stanley is accelerating its transformation from a traditional compound fertilizer enterprise to a comprehensive fine chemical leader. Driven by the dual wheels of agrochemicals and new energy, the high growth of the chemical business is expected to continue.