(For immediate release) Press Release (For immediate release) China XLX Fertiliser Announces 2015 Interim Results Profit Jumps 293% and Revenue Up19% with Strong Sales of Core Products and Unmatched Cost Advantage


Results Highlights for 1H 2015:

Revenue was up 19% year-on-year to approximately RMB2,885 million.

Overall gross profit margin increased 10 percentage points to 25% from a year ago.

Profit increased approximately 293% to RMB245 million from a year

ago.
(3 August 2015, Hong Kong) China XLX Fertiliser Ltd. ("China XLX Fertiliser" or the "Company") (HKSE: 01866.HK) announced its interim financial results for the six months ended 30 June 2015 (the "Period"). The revenue for the Period increased 19% year-on-year to approximately RMB2,885 million and the profit jumped 293% year-on-year to approximately RMB245 million. The overall gross margin increased 10 percentage points to 25% from a year ago.
The substantial increase in both the revenue and the profit was mainly due to higher average selling prices and sales volume of urea and compound fertiliser. During the period, revenue derived from the sales of urea increased approximately 11% year-on-year to RMB1,606 million, which is primarily attributable to the 6% increase in sales and approximately 5% increase in the average selling price of urea. The Company's product differentiation strategy effectively facilitates the sales and the production. During the period, the sales revenue of compound fertiliser significantly increased by approximately 51% year-on-year to RMB899 million and the sales volume by 44% thanks to the effective marketing strategy and the expansion of the distribution network.
The revenue and average selling price for methanol were both down in the Period. The revenue of methanol decreased by approximately 21% to RMB302 million from a year ago. To address the weakening methanol market, the Company has adjusted the production plan to increase the production of higher margin products such as urea in order to maximize the overall profit.
Mr. Liu Xingxu, Chairman and CEO of the Company, commented, "China XLX has been growing rapidly for years. The Company made explosive growth of profit in the first half of 2015 thanks to the continuously strong sales of core products and the unmatched cost advantage as a result of the effective
technological innovation in production and the strategic location of the plants,

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adjacent to the coal fields. Another good news to share is that the Plant V in Xinjiang has commenced production recently. The Plant V, located in the coal field, could not only significantly increase the total production, but save the production cost, further strengthening our leading position in the fertilizer industry in China.''
During the period, the overall gross profit margin increased 10 percentage points to 25% from a year ago due to the increase of gross margins for both urea and compound fertiliser. Gross profit margin of urea increased from approximately 13% in 1H2014 to 27% in 1H2015 due to the increase in the average selling price by approximately 5% and the reduction of the average cost of sales by approximately 12%. The decrease in the average cost of sales was mainly due to the improvement of the cost efficiency by the outstanding operational performance of Plant IV and lower coal prices. Gross profit margin of compound fertiliser increased 8 percentage points to 24% in 1H2015.
Looking ahead, Mr. Liu Xingxu envisaged both challenges and opportunities in China's fertilizer industry, "China XLX is well positioned to leverage the emerging opportunities for growth." he explained, "The government has launched new policies to support the development of agriculture industry and for the protection of environment, which in combination translate to the promotion of the high-efficiency fertilizer for the farmland. The Company's strategy of developing high-efficiency fertilizer fits into the national blueprint. We expect to benefit from the first-mover advantages. We will proactively promote the innovation in both management and production to improve the overall competitiveness in the industry and create greater profit for shareholders. "
~ The End ~

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 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 which is under construction, is expected to commence trial production in 2015, and boost the overall urea production to 2.6 million tons annually. 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

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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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