Applying slow-release fertilizers is possible means for reducing nitrogen(N)loss in rice production.Matrix-based fertilizers represent novel slow-release fertilizers.To date,there is little consensus about the effect of combined addition of organic and inorganic matrix materials on rice production.We developed a slow-release urea fertilizer with selected organic and inorganic matrix materials.The study aimed to:i)determine the effect of the slow-release urea on rice yield,profit,and agronomic efficiency and ii)elucidate its possible mechanisms.A two-year field experiment was conducted during 2015-2016.Besides,laboratory experiments were conducted to determine the potential N loss risk.Three treatments were set up:control without N application(CK),regular urea treatment(RU,150 kg N ha-1),and slow-release urea treatment(SU,150 kg N ha-1).The results showed that rice biomass and grain yield were significantly higher in SU than in RU(P<0.05).The higher panicle density in SU was largely responsible for the greater grain yield.Net profit in SU was≥US$450 ha-1,higher than in RU.Agronomic efficiency was significantly greater in SU than in RU(P<0.05).Rice height,root area,leaf chlorophyll,leaf nitrate reductase activity,and leaf glutamine synthetase activity were larger in SU than in RU.Less N loss and greater soil N availability were partly responsible for the improvements in rice growth traits and physiological parameters in SU.Overall,the slow-release urea is a promising fertilizer for rice production.