Financial Highlights (Unaudited):

　　(Hong Kong, 28 August 2011) China BlueChemical Ltd. (“China BlueChem” or the “Company”; stock code: 3983), a leading chemical fertilizer producer in China, today announced its unaudited interim results for the six months ended 30 June 2011.

　　During the reporting period, the Chinese Government continued to increase investment in agriculture, rural areas and farmers as part of a policy to strengthen the agricultural industry. Against this backdrop, the Group’s revenue surged 61%, compared to the corresponding period of 2010 to RMB4,757 million as sales volumes reached record highs. Gross profit climbed dramatically 86% over the corresponding period of 2010 to RMB1,697 million. Net profit attributable to owners of the parent was RMB1,030 million and the basic earnings per share were RMB0.22.

　　Mr. Yang Yexin, CEO and President of the Company, said, “During the first half year of 2011, the Chinese economy enjoyed steady growth, and demand for fertilizer and methanol was vigorous. The Company has achieved a sound sales performance through proactive market research, market-responsive tracking and active logistics coordination. During the reporting period, the Hainan Phase Ⅱ methanol plant with a production capacity of 800,000 tons have been running smoothly, and the sales volume of the Company’s primary products, urea, phosphate fertilizers and methanol have all hit record highs.”

　　During the reporting period, the domestic production of urea dropped over the same period last year affected by high production costs suffered by small and medium-sized domestic urea producers and natural gas shortage of some large-scale urea plants in the PRC. At the same time, the global demand for urea was strong, and both international and domestic market prices rose significantly, resulting in the Group’s revenue from urea amounted to RMB1, 920 million, an increase of RMB414 million or 28% compared to the corresponding period of 2010. The production and sales volume of urea were 977,741 tons and 974,059 tons respectively, with a utilization rate of 106%.

　　The ammonium phosphate prices rose steadily, driven by the rising demand both domestically and internationally, as well as the increasing raw material prices. During the first half of the year, the recorded revenue of RMB667 million was up RMB153 million or 30% compared to the same period of 2010. The production and sales volume of ammonium phosphate were 211,758 tons and 215,963 tons respectively.

　　With the steady growth of Chinese economy and the promotion of alternative sources of energy, the domestic demand for methanol continued its strong growth. Riding on the opportunity of increasing prices of methanol, the company carefully organizes its major production and strengthens safety management. Hainan Phase Ⅰ and Phase Ⅱ Methanol Plants both fulfilled long-term operation. In the fourth quarter of 2010, Hainan Phase Ⅱ methanol plants with a production capacity of 800,000 tons have commenced production, enabling the company to achieve production and sales volume of 821,264 tons and 777,678 tons respectively, a year-on-year surge of 107% and 94% respectively. The revenue of the methanol business substantially increased to RMB1,682 million, a year-on-year rise of 129%.

　　Mr. Yang concluded: "Looking ahead, the Chinese Government will continue refining its policy on strengthening and benefiting the agricultural industry, and steadily increase the grain supply, which should further boost the increasing demand of fertilizer. During the second half of the year, the international demand for fertilizer is expected to remain strong, and the fertilizer prices will remain high, as a result of export in the low season and winter fertilizers reserves. Demands for methanol will be driven up by the reasonable growth of the China’s economy and the promotion of the use of olefins made from methanol, and methanol blending gasoline. The above elements create a good market environment for the Company in the second half of the year. Therefore, China BlueChem will continue strengthening its production safety management and implement cost control measures. At the same time, the Company will actively advance construction of new production facilities, further integrate the sales network and seek qualified merger and acquisition opportunities. Riding on the advantage of its upstream and downstream integrated supply chain, the Company will consolidate its leading position in the industry, providing the maximum value for our shareholders”.
 
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About China BlueChemical Ltd.
China BlueChem is one of the largest urea, phosphate fertiliser and methanol producers in China in terms of production volume. It is a listed company under China National Offshore Oil Corp. that specialises in the production of chemical fertilisers and synthetic chemical products. Currently, China BlueChem’s production facilities are located in Hainan, Inner Mongolia and Hubei, China, with a total designed annual production capacity of 1,840,000 tonnes of urea, 500,000 tonnes of phosphate fertiliser (DAP/MAP) and 1,600,000 tonnes of methanol.

For more information of the Company, please visit the Company’s websitewww.chinabluchem.com.cn.

For press enquiries：

China BlueChemical Ltd.
Ms. Wendy Zhang Tel: (852) 2213 2502 zhangxw1@cnooc.com.cn

Strategic Financial Relations (China) Limited
Ms. Anita Cheung Tel: (852) 2864 4827 anita.cheung@sprg.com.hk
Ms. Nan Dong Tel: (852) 2864 4811   nan.dong@sprg.com.hk
Ms. Sophie Zhang Tel: (852) 2114 4960   sophie.zhang@sprg.com.hk
Ms. Sammy Xia Tel: (852) 2864 4893   sammy.xia@sprg.com.hk