China XLX Fertiliser : Vehicular Urea Products Pass Testing by Authorities

Press Release

(For immediate release)

(20 November 2014, Hong Kong) The vehicular urea of China XLX Fertiliser Ltd. ("China XLX Fertiliser" or the "Company"; HKSE: 01866.HK) has passed the tests conducted by Pony (Beijing) Testing Co. Ltd. The tested products of the Company fully comply with the diesel engine nitrogen oxide reducing agent national standards GB 29518-2013.
The current production facilities of the Company need not undergo any modification. With introduction and commencement of operations of the new facilities and the addition of pure water, the products can be turned into approved vehicular urea solution. The passing of the testing signifies that the Company possesses the production capacity to produce 800,000 tons of vehicular urea granules. If the production capacity is fully utilized to produce vehicular urea, the annual vehicular urea solution capacity of the Company would be over 2,000,000 tons, marking a new milestone of further developing industrial users and promoting the product differentiation strategy. As a special science and technology project for air pollution control in Henan province, the vehicular urea has been supported by the local government in term of the R & D fees.
Pursuant to the requirement of Phase Four National Vehicle Pollutant Emission Standards, the use of vehicular urea solution in heavy diesel vehicles is conducive to the satisfaction of the pollutant emission standards. The Company believes that the prospect of vehicular urea is promising.
Mr. Liu Xingxu, Chairman and CEO of China XLX Fertiliser, commented, "With the introduction of vehicular urea products into the market, nitrogen oxide emitted by diesel vehicles can be reduced, which can help curb air pollution and fulfill the Company's social responsibility and increase its social influence. It will also benefit the Company in gaining additional industrial users, enhancing gross profit margin of products and increasing profitability, which is in line with the product differentiation strategy of the Company."
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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 boards of the Stock Exchange of Hong Kong Limited (stock code:
01866.HK).

China XLX Fertiliser Ltd. Zhu Weiwei
Tel: 86-138 4939 1363
Email: weiwei.zhu@chinaxlx.com.hk
PRChina Limited
Terence Wong / Phoebe Leung
Tel: 852-2522 1368 / 852-2521 2823
Email: twong@prchina.com.hkpleung@prchina.com.hk

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