(For immediate release) Press Release (For immediate release) China XLX Starts Compound Fertilizer Production in Northeast Boosting Economies of Scale and Strategic Expansion

(23 September 2015, Hong Kong) China XLX Fertiliser Ltd. ("China XLX" or the "Company") (HKSE: 01866.HK) is pleased to announce that it's production facility in Jilin province, Northeast of China, had completed trial operation on September 18 and started production of compound fertlizer. The annual production capacity is expected to be 50,000 tons. The new production marks the Company's strategic expansion to the Northeast of China, following the successful production in the Company's 2nd production base in Xinjiang.
Equipment leasing approach is applied in the Northeast production base of China XLX. The compound fertilizer produced will be launched in the local market in the northeast of China to meet the strong demand of the market. The new production base serving local market will substantially save the cost of distant transportation and boost economies of scale.
Mr. Liu Xingxu, Chairman and CEO of the Company, commented "As the Company growing robustly, the production primarily from the headquarter production base in Xinxiang could not meet the strong demand of the distant local markets. China is a country with a vast territory, it is an irresistible next step to expand our production to more regions, which is in line with our growth strategy and is expected to achieve better economies of scale. The new production base of compound fertilizer is an important strategy for the Company. It will effectively support further expansion of our business and markets, strengthening the leading position of China XLX in the fertilizer 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,

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compound fertilizer, methanol and furfuryl alcohol is 2.1 million tons, 1.1 million tons, 300,000 tons and 50,000 tons, respectively. The 5th plant in Xinjiang has successfully commenced trial production, which is expected to boost the annual urea capacity to 2.6 million tons. 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.hk
ckchan@prchina.com.hk

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