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ChinaBlueChem Announces 2008 Interim Results
Revenue and Gross Profit Surged 22.5% and 31.8% Respectively
Financial Highlights: For the six months ended 30 June 2008 (unaudited) Revenue increased by 22.5% to RMB 2,832.66 million Gross profit surged 31.8% to RMB1,313.08 million Net profit attributable to equity holders of the parent up 16.9% to RMB966.18 million Basic earnings per share were RMB20.96 fen
(Hong Kong, 27 August 2008) China BlueChemical Ltd. (“China BlueChem” or the “Company”; stock code: 3983), a leading chemical fertiliser producer in China, today announced its unaudited interim results for the six months ended 30 June 2008.
During the period under review, the Company recorded revenue and gross profit of RMB2,832.66 million (2007 1H: RMB2,312.03 million) and RMB1,313.08 million (2007 1H: RMB995.93 million), representing an increase of 22.5% and 31.8% respectively against the previous corresponding period. Net profit attributable to equity holders of the parent increased by 16.9%, to RMB966.18 million (2007 1H: RMB826.53 million). Basic earnings per share were RMB20.96 fen (2007 1H: RMB17.93 fen). The board of directors did not recommend payment of interim dividend for the six months ended 30 June 2008.
Mr. Yang Ye Xin, CEO and President of the Company, said, “We are pleased to see China BlueChem achieved satisfactory results for the first half of 2008. During the period under review, with the Company’s efficient cost control through further upgraded operational management, coupled with strong demand driven by the urea market, China BlueChem realized record high operational results. As the major premium methanol supplier, we dominated the methanol pricing in southern china market. Methanol business has become one of the Company’s important profit growth drivers.”
The Company’s urea production volume increased by 2.3% to 991,069 tonnes during the period under review. The average utilisation rate of the three urea facilities reached 107.7%. The Company’s total sales volume of urea recorded 983,523 tonnes, with revenue from sale of fertiliser amounted to RMB1,821.54 million and accounted for 64.3% of the total revenue.
During the period under review, the sales volume of methanol increased by 10.1% to 313,184 tonnes. Sales revenue surged 50.0% to RMB905 million as compared to the previous corresponding period, accounted for 31.9% of the Company’s total revenue. The methanol production volume during the period was 317,350 tonnes with overall utilisation rate reached 99.2%.
During the first half of 2008, the Hainan methanol project obtained government approvals while the POM project in Inner Mongolia had commenced construction and went on under schedule. Furthermore, the Company has initiated and smoothly pushed forward the acquisition of the phosphate fertiliser assets and phosphate mine reserves in Dayukou, Hubei.
In May 2008, China BlueChem established a joint venture, China BlueChem Yichang Mining Ltd., (“Yichang Mining”) in Yichang, Hubei, to focus on exploring and mining of phosphate mine, mineral processing and sales of phosphate ore. Yichang Mining will invest in a project with an annual phosphate mining capacity of 1,500,000 tonnes and middle-low grade mineral processing annual capacity of 1,000,000 tonnes, which is expected to become an important resources supply for the Company’s future phosphate fertiliser business upon completion. On the other hand, the Company has also won the controlling rights of CNOOC Jiantao, and changed CNOOC Jiantao from a jointly-owned entity to a controlling subsidiary of the Company. The Company’s interest being held in CNOOC Jiantao remains unchanged at 60%.
“Looking forward, taking the edge of its position as one of the largest and most efficient nitrogenous fertiliser and methanol producers in China in terms of production volume and energy consumption, and the strong support from the parent company China National Offshore Oil Corporation, the Company will forge ahead the POM project in Inner Mongolia, the Hainan methanol project, as well as the preparation works of the Shanxi coal-based urea project while keeping high efficiency for the current production facilities. Furthermore, the Company intends to complete the acquisition of Hubei Dayukou within the year and proactively seek for acquisition opportunities of resources and assets which are in line with our strategies to achieve leap-forward development. We will strive to create new growth 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 fertiliser 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 fertilisers 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 press enquiries：
China BlueChemical Ltd.
Ms. Lydia Zhong Tel: (852) 22132502 zhongyx@cnooc.com.cn
Strategic Financial Relations (China) Limited
Ms. Karen Hung Tel: (852) 2864 4854 / 9155 4555 karen.hung@sprg.com.hk
Ms. Arlene Wong Tel: (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 | 
