(Hong Kong, 30 March 2012) China BlueChemical Ltd. (“China BlueChem” or the “Company”; stock code: 3983), a leading fertilizer producer in China, today announced its audited annual results for the year ended 31 December 2011.

During the year, the Chinese government continued to expand its contributions to foodstuff production and consolidate the supporting policies for the domestic agriculture industry. These efforts have resulted in higher grain production, and thus drove up the demand for fertilizer steadily. Under the favorable market condition, the Company’s revenue reached a new high, representing a solid growth of 42% to RMB9,756 million over the previous year. Gross profit rose 49% to RMB3,268 million from last year. Net profit attributable to owners of the parent surged 69% to RMB1,986 million from 2010. Basic earnings and diluted earnings per share were RMB0.43. The Board recommended a final dividend of RMB0.16 per share for the year ended 31 December 2011 (2010: RMB0.09).

Mr Yang Yexin, CEO and President of the Company, said, “Despite the complicated global economic condition, the Chinese economy continued to grow steadily and swiftly in 2011. During the year, the actual investment of the government central treasury in agricultural, rural areas and farmers first exceeded RMB1 trillion, which supported the growth of foodstuff production for eight consecutive years and created a strong domestic demand for fertilizers. The steadily rising worldwide foodstuff price index also fuelled the global attraction of planting agricultural products，hence the demand for fertilizers from overseas has also increased. The Company successfully captured the market opportunities and leveraged its cost and brand advantage, while exert the synergy among production, sales, logistics and delivery operations. These efforts enabled us to reach a historical height in revenue and profit since the establishment of the company.”

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During the year of 2011, domestic coal prices hovered aloft with significant increases in production costs of small and medium scale domestic urea manufacturers using anthracite as feedstock. In addition, the PRC Government raised the access thresholds for the ammonium phosphate by introducing the “Conditions for Access into Ammonium Phosphate Sector” in the second half of 2011, providing a favorable policy foundation for the optimization and consolidation of the phosphate sector. In 2011, the Company sold 1,870 thousand tonnes of urea, and realized a revenue of RMB4,047 million, which was RMB532 million or 15.1% higher than the year of 2010. The Company produced 435 thousand tonnes and sold 430 thousand tonnes of phosphate fertilizers and realized a revenue of RMB1,350 million, which is RMB116 million or 9.4% more than the year of 2010.

In 2011, demand for methanol from domestic downstream industries continued to increase amid steady economic growth in the PRC and as crude oil prices hovered high, the application of methanol as an alternative source of energy grew swiftly. The high production cost together with strong demand pushed the domestic prices of methanol to a high level. The Company was able to take advantage of these opportunities, and lifted the output and sales volume of methanol by 81.1% and 72.3% year-over-year to 1,570 thousand tonnes and 1,490 thousand tonnes, respectively. The recorded revenue reached RMB3,346 million, an increase of RMB1,655 million or 97.9% compared to 2010.

Mr Yang concluded, “Looking into 2012, the Chinese Government will keep focusing on the development of agriculture and strengthening more supportive polices, which should increase the demand of fertilizers. Moreover, steady growth of the Chinese economy and the development of alternative energy will bring along rising demand on methanol. Through embracing our development strategy of ‘Focusing on resources and cost efficiency,’ we strive to create a better future for the Company and generate fruitful returns for shareholders.”

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About China BlueChemical Ltd.
China BlueChem is one of the largest urea, phosphate and methanol producers in China in terms of production volume. It is a listed company under China National Offshore Oil Corp. that specializes in the production of chemical fertilizers 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 fertilizer (DAP/MAP), 1,600,000 tonnes of methanol and 60,000 tonnes of POM.

For more information of the Company, please visit the Company’s website at www.chinabluchem.com.cn.

For press enquiries：

China BlueChemical Ltd.
Ms. Wendy Zhang        Tel: (852) 2213 2533 　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. Pinky Li         　 Tel: (852) 2864 4830  　pinky.li@sprg.com.hk