(Hong Kong, March 28, 2023) -China BlueChemical Ltd. ("China BlueChem" or the "Company," stock code: 3983) has announced its audited annual results for the year ended 31 December 2022. In 2022, the Company realized a revenue of RMB14.279 billion,up 6.6% against 2021. Net profit attributable to owners of the Company grew 9.7% year-on-yearly to RMB 1.643 billion.
Mr. HOUXiaofeng, CEO and President of China BlueChemsaid, "In 2022, the COVID-19 pandemic, regional conflicts, geopolitical tensions, rising energy and food prices hadbroughta profound impact on the fertilisers industry and chemicalsindustry. Nevertheless, China BlueChem pushed through adversity to achieve an impressive performance, making record-high profit since 2012. As such, the Board of Directors recommended payment of a final dividend of RMB0.178 per share (tax included) for 2022, rewarding the Company's shareholders with a payout ratio of 50%.In respect of production management, the Hainan Phase I and Hainan Phase II methanol plants made a long-term operation period of over 400 days. As a result, Fudao's annual methanol production volume increased significantly and hit a record high. In 2022, the Company produced 1,962 thousand tonnes of urea, 933 thousand tonnes of phosphate and compound fertilisers, 1,520 thousand tonnes of methanol and 21 thousand tonnes of POM.
In respect of sales management, China BlueChem grasped the market opportunities by strengthening its market study and analysis capabilities supported with scientific pricing through big data, which significantly enhanced the Company's market competitiveness. Through improving channel influence, studying and adopting policies, adjusting product mix and making use of innovative B2C e-commerce direct sales model, the Company was able to ensure the balance between production and sales despite significant decrease in exports, and managed to achieve higher sales at high prices and raise profit through larger output volume. In 2022, the Company sold 1,959 thousand tonnes of urea, 1,506 thousand tonnes of methanol, 625 thousand tonnes of phosphate fertilisers, 299 thousand tonnes of compound fertilisers and 21 thousand tonnes of POM. During the year, the Company exported a total of 91 thousand tonnes of urea and 66 thousand tonnes of DAP.
In respect of high-quality development,the Company actively carried out preliminary research on high-end and new chemical material projects, including acceleration of the research of the PMMA (Poly Methyl Methancrylate) project. Strategic partnerships were established with Chinese Academy of Agricultural Sciences, BASF, Chinese Academy of Sciences, etc. to foster high-end development of the industrial chain and value chain, and at the same time, reforms or removals were made to production facilities with inferior capacities. Ranking dual tops in both production capacity and output among all Central enterprises in the field of fertilizers, the Company is committed to creating efficiency from the technology of "solutions to plant nutrition".
In 2022, solid progress was made in the acrylonitrile project, which marked the Company's entry to organic chemicals from inorganic chemicals. The project was successfully put into operation in one time in February 2023, making the shortest record of the construction period of similar projects in China. In respect of technological collaboration in 2022, breakthroughs were made in the Company's industrial utilisation technology of carbon-rich natural gas in the South China Sea, where the original 22% carbon dioxide content of the natural gas for utilisation was successfully uplifted to 35%.
The Company continued to press ahead with its green and low-carbon development strategy and maintained its leading position in energy efficiency. Its methanol production facilities have been honoured as the "Leader in Energy Efficiency" for 11 consecutive years by the China Petroleum and Chemical Industry Federation and its synthetic ammonia production facilities have been honoured as the "Leader in Water Efficiency" for three consecutive years by the China Nitrogen Fertilizer Industry Association. With the Company actively promoting the concept of "green methanol", the impact of production activities on the climate has also been reduced.
It is delightful to see the continued growth in the Company's brand value. In the "2022 China Brand Development Forum", China BlueChem was admitted to the official 2022 China Brand Value Evaluation List with a brand value of RMB3.971 billion, an increase of RMB772 million compared with 2021.Looking ahead to the industry trend in 2023, with the recovery of the domestic economy and the return of logistics to normal, it is expected that export and industrial demand will recover to a certain degree. However, the demand for agriculture will remain in a seasonal cycle. There is still a relatively strong support for the urea market, so it will be relatively limited room for urea price to go down, and its trend in the first half of the year may be stronger than that in the second half. The price of ammonium phosphate may remain firm at a high level, and may fluctuate downward in the low season of fertilisers in the second half of the year. In respect of methanol, the release of new methanol production capacity will slow down, and the demand for methanol-to-olefins and traditional downstream methanol products will be relatively stable, while the impact of cost posed on methanol and downstream products will be more obvious. The demand for POM for new energy vehicles is expected to increase.
As for the key strategies in 2023,Mr. HOU Xiaofeng, CEO and President of China BlueChem said, "The Company will further enhance HSE (Health, Safety and Environment) and refined production management, strictly control costs, promote technology research and innovation, and push forward its high-quality development. Moreover, it will make the best efforts to ensure the acrylonitrile project can start commercial operation this year. It will also grasp the opportunities arising from the construction of Hainan Free Trade Port and drive high-quality investment projects forward, such as the construction of wharf and logistics. In the meantime, the Company will fully explore new growth drivers, with the aim of generating desirable returns for shareholders."
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For more information about the Company, please visit its website:
www.chinabluechem.com.cn.
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This press release includes forward looking information, including statements regarding the likely future developments in the business of the Company and its subsidiaries, such as expected future events, business prospects or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify such forward-looking statements. These statements are based on assumptions and analyses made by the Company as of this date in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company currently believes are appropriate under the circumstances. However, whether actual results and developments will meet the current expectations and predictions of the Company is uncertain. Actual results, performance and financial condition may differ materially from the Company's expectations, including but not limited to those associated with macro-political and economic factors, fluctuations in fertilisers and chemicalsprices, the highly competitive nature of the fertiliserand chemicalindustry, climate change and environment policies, the Company's price forecast, mergers, acquisitions and divestments activities, HSSE and insurance policies and changes in anti-corruption, anti-fraud, anti-money laundering and corporate governance laws.
Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements. The Company cannot assure that the results or developments anticipated will be realised or, even if substantially realised, that they will have the expected effect on the Company, its business or operations.
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For moreenquiries，please contact：
Mr. Zhou Yuying
Investors Relations
China BlueChemical Ltd.
Tel: +86-10-84527343
Email:zhouyy3@cnooc.com.cn
Ms. Anita Cheung, Ms. Gianna Ye
Strategic Financial Relations (China) Limited
Tel:+852-2864-4827, 2864-4837
Email:sprg-bluechem@sprg.com.hk
CHINA BLUECHEMICAL LTD. 
