Financial Highlights:

For the year ended 31 December 2008
Revenue increased by 27.1% to RMB 5,518.18 million
Gross profit surged 26.8% to RMB2,268.17 million
Net profit attributable to equity holders of the parent up 12.9% to RMB1,635.28 million
Basic earnings per share were RMB0.35
Proposed dividend of RMB0.095 per share

(Hong Kong, 27 March 2009) China BlueChemical Ltd. (“China BlueChem” or the “Company”; stock code: 3983), a leading chemical fertiliser producer in China, announced its annual results for the year ended 31 December 2008.

During the year under review, the Company recorded revenue and gross profit of RMB5,518.18 million (2007: RMB4,340.43 million) and RMB2,268.17 million (2007: RMB1,788.23 million) respectively, representing an increase of 27.1% and 26.8% respectively against the previous year. Net profit attributable to equity holders of the parent increased by 12.9%, to RMB1,635.28 million (2007: RMB1,448.33 million). Basic earnings per share were RMB0.35 (2007: RMB0.31). The board of directors proposed a final dividend of RMB0.095 per share for the year ended 31 December 2008 (2007: RMB0.08).

Mr. Yang Ye Xin, CEO and President of the Company, said, “We are pleased to see China BlueChem achieved satisfactory results in the sharp-turned market in 2008. During the year, the Company further refined and reinforced its production management. The urea facility of Fudao Phase II and the methanol facility of CNOOC Jiantao were recorded their longest cycles since they were put into operation. The Company grasped favorable market opportunities and maximized sales revenue during the first three quarters of 2008 when the price of urea and methanol maintained at a high level. In addition, the Company strategically increased its urea sales in North-eastern China and methanol sales in Southern China, which effectively relieved the pressure on the Company’s export business under the global economic downturn.”

The Company’s urea production volume increased by 5.6% to 1,949,123 tonnes during the year under review. The average utilisation rate of the three urea facilities reached 105.9%. The Company’s total sales volume of urea recorded 1,881,630 tonnes. The revenue derived from urea and BB fertilisers amounted to RMB3,647.1 million and accounted for 66.1% of the total revenue.

The production volume of CNOOC Jiantao has been fully consolidated into the Company since May 2008. During the year under review, the production and sales volume of methanol increased by 36.3% and 32.5% respectively to 686,684 tonnes and 675,077 tonnes. The overall utilisation rate reached 96.4%. Sales revenue of methanol surged 43.7% to RMB1,646.7 million as compared to the previous year, accounted for 29.8% of the Company’s total revenue.

~ Continued ~

For the Hainan methanol project, government approvals have been obtained. The project design and purchase contracts have been signed and the infrastructure exploration has been accomplished as well. The construction commencement ceremony was held on 12 November. With the completion of the concrete construction, the POM project in Inner Mongolia has been under equipment installation and is gone on under schedule.

China BlueChem has successfully expanded its business scope to phosphate fertiliser. Following its establishment of a joint venture in Hubei to construct a mining project in May 2008, the Company has received official approval of its acquisition of Hubei Dayukou Chemical Co., Ltd. and ZHJ Mining Co., Ltd. from the parent company on 5 March this year. The completion of the acquisition enabled the Company to further enlarge its phosphate resources and to acquire the know-how and expertise in the mining and exploiting of low-medium phosphate resources, which will help to lay a solid foundation for the Company to develop its phosphate fertiliser and phosphoric chemical business.

“Looking forward, with the PRC government continuous increasing of its spending on and subsidies to agriculture, the strong demand of agricultural production will be able to drive fertiliser price under market-led pricing mechanism. As methanol is used as an important alternative energy, its demand will also recover gradually with a series of policies and plans to stimulate the economy and boost the domestic demand introduced by the government. Facing the future opportunities and challenges, as one of the largest and most efficient nitrogenous fertiliser and methanol producers in China in terms of production volume and energy consumption, China BlueChem will further enhance the production management, forge ahead the POM project in Inner Mongolia, the Hainan methanol project, and continue the progression of Shanxi urea project and Inner Mongolia coal-chemical project. Furthermore, the Company will implement the integration and capacity expansion of phosphorus resources to create new profit growth. We will also proactively seek for acquisition opportunities of resources and assets which are in line with our strategies and bring in better returns for our shareholders.” Mr. Yang concluded.