(Hong Kong,26 August 2009) China BlueChemical Ltd. (“China BlueChem” or the “Company”; stock code: 3983), a leading chemical fertiliser producer inChina, today announced its unaudited interim results for the six months ended30 June 2009.

Affected by the global financial turmoil, during late 2008 and early 2009, market demand for fertilizer and chemical dwindled, resulting in the decline in the Company’s products sales volume and sales price, and decrease in income and profit compared with the corresponding period last year. During the period under review, the Company’s revenue was RMB2,828.1 million, and gross profit was RMB859.6 million. Net profit attributable to equity holders of the parent was RMB527.0 million. Basic earnings per share were RMB11.43 fen. The board of directors did not recommend payment of interim dividend for the six months ended30 June 2009.

Mr. Yang Ye Xin, CEO and President of the Company, said, “In the first half of 2009, due to the macroeconomic environment, the whole fertilizer and chemical market was relatively weak. Under the adverse market environment, the Company basically achieved balance between output and sales for our principal products relying on the excellent quality and fine reputation of our urea and methanol products, assuring profitability while further highlighting economies of scale and cost advantages of the Company’s urea and methanol plants. During the period, the production volume and sales volume of phosphate fertiliser pursuant to the acquisition of DYK Chemical and ZHJ Mining recorded 214,642 tonnes and187,330 tonnes respectively, the sales volume of DAP products achieved breakthrough in the strategy of building inventory through low seasons for sales during peak seasons, the average utilisation rate of the phosphate fertilizers facilities reached 85.9%, generating a revenue of RMB521.9 million.”  

During the period under review, the Company’s production volume and sales volume of urea were 940,775 tonnes and 935,756 tonnes respectively. The average utilisation rate of the three urea facilities reached 102.3%. The sales revenue from urea was RMB1,628.9 million, representing a decrease of RMB43.2 million from RMB1,672.1 million for the corresponding period of 2008, which was primarily attributable to decrease in selling price of urea and a decrease of 47,767 tonnes in sales volume of urea as compared to the corresponding period last year.

In addition, the Company’s production volume and sales volume of methanol were 394,695 tonnes and 379,768 tonnes respectively. Due to decrease in sales volume of methanol as compared to the corresponding period last year, the sales revenue from methanol was RMB531.1 million, representing a decrease of RMB374.0 million over the corresponding period of 2008.

In July this year, the Company purchased Shanxi Hualu Yangpoquan Coal Mining Co., Ltd and Shanxi Hualu Coal Chemical.Ltd. The acquisition will provide the Company with long-term supply of suitable coal resources as well as expanded urea capacity, so as to further level up the Company’s cost advantage and market competitiveness.

“Looking forward, with various economic stimulation measures launched by the Central Government, along with the continuous practice of a series measures to raise farmer income, the prices and the demands for fertilizers and chemical products will be pushed up, which will benefit our Company. To address changes in our business environment and opportunities for development, China BlueChem will focus on continuously enhancing the production and safety management to ensure the stable operation of existing units plants and the fulfillment of annual production targets, actively executing the sales tasks to fulfill the annual sales targets, promoting under-constructed projects, and at the same time, proactively seeking for opportunities for both domestic and foreign merger, acquisition and reconstruction. ” Mr. Yang concluded.

About China BlueChemical Ltd.

China BlueChem is one of the largest and most efficient nitrogenous fertiliser producers inChinain 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, Inner Mongolia andHubei,China, with a total designed annual production capacity of 1,840,000 tonnes of urea, 800,000 tonnes of methanol and 500,000 tonnes of phosphate fertilizer (DAP/MAP). 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.LydiaZhong         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.Cherry Qiu               Tel: (852) 2114 4960 / 6906 0505   cherry.qiu@sprg.com.hk

Ms.Cathy Zhang            Tel: (852) 2114 4963 / 9660 2592   cathy.zhang@sprg.com.hk