Press Release

(For immediate release)

China XLX Fertiliser's Control Release Urea Awarded Patents

To Enrich Product Portfolio And Enhance Profitability
(4 September 2014, Hong Kong) China XLX Fertiliser Ltd. ("China XLX Fertiliser" or the "Company", HKSE: 01866) announces that a type of control release fertiliser named "Environmental Friendly Low Cost Endoplasmic Coated Slow Release Urea" successfully developed by a joint group formed between the Company's wholly-owned subsidiary, Henan Xinlianxin Fertiliser Co., Ltd. and Hefei Institution of China Academy of Sciences, has been granted patents.
The product is composed of a compound of control release agent and urea, which is formed by adding polymer composites into liquid urea utilising special equipment. After adding the product to the soil, the soil is hydrated by moisture from irrigation water or rain and it absorbs the water and swells, forming an absorption layer which instantly turns into a honeycombed or spongy structure. This structure can slow down the release of nitrogen which not only enhances the absorption rate, but also saves labour and fertiliser costs by enabling a "once-and-for-all fertilisation for each harvest season".
The joint group has conducted tests on the effectiveness of the control release fertiliser on various crops such as wheat, corn, rice and cotton, with tested farms covering a total area of 3.4 million mu in major agricultural regions including Henan and Anhui. The test results on 33 experimental wheat farms in
2014 showed that the control release urea showed an obvious increase in crop yield in a single fertilisation. The average crop output increased by approximately 108.82 catties per mu, representing an increase of 10.28%.
Mr. Liu Xingxu, Chairman and CEO of the Group, commented, "The control release fertiliser not only possesses high technological content with mature technology, it can also be industrialised. The application of such fertiliser can minimise agricultural pollution. The commencement of the control release urea and control release compound fertiliser production demonstrates the Company's great progress in the production of high efficiency fertilisers. It has further enriched the Company's product portfolio and increased the core technological content of the Company's products so as to enhance the profitability of the Company."
In the future, China XLX Fertiliser will continue to stick to its strategy of cost efficiency and product differentiation in order to strengthen the Company's leading position in the fertiliser industry in China.
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About China XLX Fertiliser Ltd.

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 fertiliser and methanol is 2.1 million tons, 1.1 million tons and
200,000 tons, respectively. Besides, the 5th plant in Xinxiang, which is under construction, is expected to commence trial production next year. 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 board 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
Terence Wong / Henry Chik / Phoebe
Leung
Tel: 852-2522 1368 / 852-2521 2823
Email: twong@prchina.com.hk hchik@prchina.com.hk pleung@prchina.com.hk

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