China XLX Fertiliser : Voluntary Announcement Establishment of the China Nitrogen Fertiliser Industry (Xinlianxin) Technology Research Center

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

*

(Incorporated in Singapore with limited liability)

The board of directors of China XLX Fertiliser Ltd. (the "Company") is pleased to announce that on 27 June 2014, the Company's wholly-owned subsidiary, Henan Xinlianxin Fertiliser Co., Ltd. was approved to establish the China Nitrogen Fertiliser Industry (Xinlianxin) Technology Research Center by the China Nitrogen Fertiliser Industry Association (CNFIA) and the center will be located in the Company's headquarters in Henan province.
The total investment of this project will amount to approximately RMB60 million. The whole project will be divided into two phases: the first phase with 15 mu intelligent greenhouse, fruit tree plantations and the scientific research building will be completed in December 2015; the second phase with 30 mu intelligent greenhouse and several demonstration yields will be completed in June 2017.
The Company believes that the establishment of the China Nitrogen Fertiliser Industry (Xinlianxin) Technology Research Center will provide the following benefits:
1. Enrich and improve the Company's technology platform;
2. Cultivate talent and enhance the Company's technology strength;
3. Speed up the advancement in technology in the industry;
4. Promote the new products;
5. Develop the strategy of product differentiation; and
6. Improve the hardware and software facilities and enhance the development capability.
Being a national high technology enterprise, the Company is focusing on the scientific and technology innovation, and has been awarded as an "Ammonia Energy Consumption Leader" by the China Petroleum and Chemical Industry Federation for 3 consecutive years. The Company has currently owned several professional technology platforms, such as the national postgraduate education workstation, enterprise technology center and measure center.
1
In the future, the Company will continue to enhance its technological strength in the areas of saving energy and developing controlled release urea, organic fertilizer and efficient fertilizer utilizing the technology platform of the China Nitrogen Fertilizer Industry (Xinlianxin) Technology Research Center. The Company will continue its strategy of improving cost efficiency and product differentiation in order to enhance the profitability, specialization, and serialization of its position as a fertiliser materials supplier.
By Order of the Board

Chairman & Chief Executive Officer

11 September 2014

As at the date of this announcement, the executive directors of the Company are Mr. Liu Xingxu, Ms. Yan Yunhua and Mr. Li Buwen; the independent non-executive directors of the Company are Mr. Ong Kian Guan, Mr. Li Shengxiao and Mr. Ong Wei Jin; and the non-executive director of the Company is Mr. Lian Jie.

* for identification purpose only

2

distributed by