China XLX Fertiliser : Commences Production in Plant V Urea Capacity Expected to Exceed 2.6 Million Tons Per Annum

Press Release

(For immediate release)

(4 August 2015, Hong Kong) China XLX Fertiliser Ltd. ("China XLX" or the "Company", Stock Code: 01866) is pleased to announce that the Plant V, located in the coal field of Xinjiang, has successfully completed construction and commenced production.
The Plant V is expected to have an annual capacity of 520,000 tons of urea, which means that China XLX and its subsidiaries (together the "Group") would have an annual urea capacity of more than 2.6 million tons, strengthening our position as a leading urea producer and leading private fertilizer enterprise in China.
The Plant V will continue to apply the advanced coal gasification technologies that the Company successfully used in Plant IV. This will effectively save production cost and improve the overall operation efficiency.
The Plant V is strategically located in Xinjiang, an important gateway connecting China, Central Asia and Europe in China's "One Belt, One Road" initiative. The Plant V is expected to leverage the national preferential policies for growth.
China XLX Chairman and Chief Executive Officer Mr. Liu Xingxu commented, "Plant V is the first plant that China XLX built in Xinjiang. The commencement of production in Plant V is a milestone event for China XLX, expanding our geographic expansion to Xinjiang, where we have already had two coal mines in Manas, Tianli Coal Mine and Tianxin Coal Mine. The cost of production would therefore be substantially decreased. We will continue to explore opportunities in both upstream and downstream of the industry chain. We are dedicated to become a coal chemical conglomerate comparable to industry leaders worldwide and creating maximum value for our shareholders."
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China XLX Fertiliser Ltd., one of the largest and most cost efficient coal-based urea producers in China, is mainly engaged in the production and sale of urea, compound fertiliser and methanol. Its annual production capacity of urea, compound fertilizer, methanol and furfuryl alcohol is 2.6 million tons, 1.1 million tons, 300,000 tons and 50,000 tons, respectively. The Group forged a strategic partnership with Primavera Capital, an internationally renowned private equity fund, at the end of 2011, aiming to leverage on its extensive experience and resources network in the capital market to sustain stable business growth. The Company's shares are traded on the main boards of the Stock Exchange of Hong Kong Limited (stock code: 01866.HK).

Investor and Media Enquiries:

China XLX Fertiliser Ltd. Zhu Weiwei
Tel: 86-138 4939 1363
Email: weiwei.zhu@chinaxlx.com.hk
PRChina Limited
Peggy Yuan / Charles Chan
Tel: 852-2522 1368
Email: jyuan@prchina.com.hkckchan@prchina.com.hk

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