Financial Highlights:

　　　　

　　(Hong Kong, 31 March 2008) China BlueChemical Ltd. (“China BlueChem” or the “Company”; stock code: 3983), a leading chemical fertilizer producer in China, today announced its annual results for the year ended 31 December 2007.

　　

　　During the year under review, the Company recorded revenue and gross profit of RMB4,340million (2006: RMB3,466 million) and RMB1,788 million (2006: RMB1,302 million) respectively, representing a surge of 25.24% and 37.39% respectively against 2006. Net profit attributable to equity holders of the parent increased by 35.58% to RMB1,448 million as compared with RMB1,068 million (excluding a one-time gain of excess over the cost of a business combination relating to the acquisition of Tianye Chemical of approximately RMB577.62 million) in 2006. Basic earnings per share was RMB0.31. The board of directors proposed a final dividend of RMB0.08 per share for the year ended 31 December 2007 (2006:RMB0.015).

　　　

　　Mr. Yang Ye Xin, CEO and President of the Company, said, “We are pleased to see our achievement of outstanding results in the challenging year 2007. First of all, our urea business realized significant growth in both production and sales. Secondly, with the successful commencement of CNOOC Jiantao 600,000-tonnes methanol production facility, our methanol production volume significantly raised 3.5 times, which has become a new profit driver of the Company. Our product quality has been maintaining a leading international standard, in which, CNOOC Jiantao has received the highest rating in creditability and quality from China Product Quality Association, and our “Fudao” brand granular urea product has been named as “The China Famous Brand” for three consecutive years. Furthermore, the Company has also been included in the MSCI. All these achievements well demonstrate our recognition in the industries and the capital market.”

　　　

　　Affected by the suspension of natural gas supply due to pipeline damage, production of the Fudao Phase II was suspended for 55 days, as a result, the Company’s annual urea production volume　slightly reduced by 4.28% to 1,844,988 tonnes in 2007. The annual urea production volume from Fudao Phase I and Fudao Phase II were 604,682 tonnes and 689,484 tonnes respectively, while annual urea production volume from Tianye Chemical was 550,822 tonnes. The average utilization rate of the urea facilities reached 100.27%. During the year, the Company’s total annual urea sales volume recorded 1,856,681 tonnes with sales revenue amounting to RMB2,976 million, which accounted for approximately 68.57% of the total revenue.

　　

　　In 2007, the sales volume of methanol increased Y-O-Y by 3.5 times to 509,332 tonnes, with sales revenue surging 3.71 times to RMB1,146 million and accounting for 26.41% of the Company’s total revenue. The annual production volume of Tianye Chemical was 187,341 tonnes with utilization rate reaching 93.71%, while the annual production volume of CNOOC Jiantao methanol facilities (whose 60% interests is held by the Company) amounted to 527,482 tonnes with utilization rate of 87.91%. 　

　　

　　The Company adjusted its domestic and international sales strategies to keep abreast with market changes. The Company exported 25% of its total urea sales volume and 31% of its total methanol sales volume to overseas markets, mainly Southeast Asia, South Asia and North America.

　　

　　In 2007, the Company obtained the government approval for its POM project. Upon completion, the facility, with annual production capacity of 60,000 tonnes, will become the single largest polyoxymethylene production facility in China. In addition, the Company optimized the construction plan of its third methanol project according to the government’s requirements. The project, which is currently undergoing government’s investigation, is expected to obtain the approval in the first half of 2008 and commence the construction by the end of the year.

　　

　　The Company has begun the research work on coal-gas convert technology. China BlueChem JinCheng Chemical Limited was established pursuant to the JV agreement entered between the Company and JinCheng SASAC, aiming to build a 1-million-tonnes-per-annum coal-based urea plant as the phase I project.

　　　

　　“In 2008, the PRC government will continue to reinforce support to the agricultural industry which in turn will further boost the growth of urea demand. Being one of the nitrogenous fertilizer and methanol producers with the largest production volume and lowest energy consumption, we believe, our solid business foundation together with the strong support from the parent company China National Offshore Oil Corporation, will enable China BlueChem to capture the ever increasing opportunities arising from the chemical fertilizer industry in China. Looking ahead, following our dual development strategies of both organic growth and expansion by acquisition, the Company will actively accelerate the development of the POM and its third methanol projects, and, at the same time, strive to acquire the asset of Hubei Dahukou phosphorous project by 2008. Meanwhile, the Company will also proactively seek for other new projects and acquisition opportunities which are in line with our development strategies, to create new growth drivers for the Company and bring in better returns for our shareholders.” Mr. Yang concluded.　　　

　　　

　　　　　

　　About China BlueChemical Ltd.

　　China BlueChem is one of the largest and most efficient nitrogenous fertilizer producers in China in terms of production volume and energy consumption. It is a listed company of China National Offshore Oil Corp. that engages in the production of downstream mineral fertilizers and synthetic chemical products. Currently, China BlueChem’s production facilities are located in Hainan and Inner Mongolia, China, with a total designed annual production capacity of 1,840,000 tonnes of urea and 800,000 tonnes of methanol. By entering into a long-term agreement, China BlueChem has secured stable natural gas supply for its Hainan Plant. 　

　　

　　For more information about China Bluechem, please visit the Company’s website at www.chinabluechem.com.cn.

　　　　

　　For press enquiries：

　　　

　　China BlueChemical Ltd.

　Ms. Lydia Zhong Tel: (852) 22132502　　  zhongyx@cnooc.com.cn

　　

　　Strategic Financial Relations (China) Limited

  Ms. Karen HungTel: (852) 2864 4854 / 9155 4555  karen.hung@sprg.com.hk  Ms. Arlene WongTel: (852) 2864 4899 / 9233 2926 arlene.wong@sprg.com.hk  Ms. Annie Choi　　 Tel: (852) 2864 4837 / 9627 0563　　  annie.choi@sprg.com.hk  Ms. Cherry Qiu   Tel: (852) 2114 4960 / 6906 0505　　  cherry.qiu@sprg.com.hk