China BlueChem Achieves Record-High Interim Profit, 2023 1H Profit increases by 83% to RMB 1.715 billion

HONG KONG, Aug 21, 2023 – (ACN Newswire) – China BlueChemical Ltd. (“China BlueChem” or the “Company,” stock code: 3983), the leading chemical fertiliser and methanol producer in China, announced its unaudited interim results for the six months ended 30 June 2023. In the first half of the year, the Company’s revenue decreased by 16.2% to RMB 6.176 billion. Net profit attributable to shareholders of the Company significantly increased by 83% to RMB 1.715 billion, marking the record-high mid-year profit in the company’s history.

Mr. HOU Xiaofeng, CEO and President of China BlueChem said, “The Company has consistently implemented its green and low-carbon development strategy. Due to ESG considerations, the Company sold a 67% equity interest in CNOOC Tianye, which resulted in a one-time revenue of RMB 850 million in the first half of the year. This significantly drove the company’s profit to grow 83% to RMB 1.715 billion, marking the highest mid-year profit in the company’s history. The Company has consistently boasted the honor and advantage of being an industry leader in energy efficiency. The methanol plant of the Company was awarded the honorary title of “Energy Efficiency Leader” by China Petroleum and Chemical Industry Federation for 12 consecutive years, and the synthetic ammonia plant was awarded the honorary title of “Water Efficiency Leader” by China Nitrogen Fertiliser Industry Association for four consecutive years.”

In the first half of 2023, the domestic economy continued to recover, while facing challenges such as insufficient domestic demand and a complex and tough external environment. In response to the market environment, the Company has actively enhanced its marketing capabilities. On one hand, it strived to strengthen its product brand premium, and on the other hand, it intensified its agrochemical services. Additionally, the Company forged ahead cost reduction and efficiency enhancement

In the production perspective, the Company’s main facilities have achieved long-term operation. In particular, the C series of DYK Chemical’s sulfuric acid achieved long-term running for 301 days, and CNOOC Huahe’s chemical fertiliser plant achieved long-term running for 228 days, both breaking historical records. The urea production volume of the CNOOC Huahe hit a record high. As a result, the Company produced 1.044 million tonnes of urea, 687 thousand tonnes of methanol, 401 thousand tonnes of phosphate fertilisers and compound fertilisers in the first half of the year.

With regards to sales and marketing, the Company accurately assessd the market and strengthened refined pricing. It also fully promoted the export of fertilisers during off-seasons and focused on the development of high-quality trade. The Company deepened its brand building and actively established itself as a “Plant Nutrition Solution Provider”. In the first half of the year, the Company sold 1.045 million tonnes of urea, 655 thousand tonnes of methanol and 352 thousand tonnes of phosphate fertilisers and compound fertilisers.

As for the industry outlook in the latter half of the year, the net domestic urea supply will be flat year-on-year or slightly increase, and the domestic supply and demand will be basically balanced, thereby the export will increase significantly. It is expected that the overall urea market will fluctuate. After the continuous decline of phosphate fertiliser, with the recovery and concentrated release of demand, the price of phosphate fertiliser has a certain foundation for stabilising and rebounding in the third quarter, which is related to the trend of international market prices and raw material costs. However, the overall oversupply situation may continue, and the price will still face the risk of falling in the fourth quarter. In the context of stable domestic economic growth, the oversupply of methanol will be alleviated. Under the situation of expected improvement in the macro environment, the market is expected to mainly fluctuate in a wide range. Due to raw materials, demand and other support, the market price of acrylonitrile may rise slightly.

Regarding the key strategies for the second half of 2023, Mr. Hou Xiaofeng, CEO and President of China BlueChem said, “The Company will continue to enhance the safe and stable operation of production plants, and promote the completion of HSE “re-systemization” construction. It will continuously optimise the business models and further promote the brand strategy, strengthen warehouse management and give full play to the advantage of inventory premium. Moreover, the Company will promote the analysis of digital scenarios in areas such as smart factory, smart terminal and smart sale, and focus on the construction of terminals in Basuo Port to promote the development of international trade and port logistics service industry, as well as actively deploy the clean energy industry and promote green and low-carbon development in order to bring shareholders good returns.”.

About China BlueChemical Ltd.

China BlueChemical Ltd. (“China BlueChem”) is a listed company that specialises in the development, production and sales of chemical fertilisers and synthetic chemical products. It is the largest Central enterprise in the field of chemical fertilisers in terms of both production capacity and production volume. The Company is a subsidiary of China National Offshore Oil Corporation which mainly engages in the exploration, development, production and sales of crude oil and natural gas. On 29 September 2006, China BlueChem was listed on the main board of The Stock Exchange of Hong Kong Limited with the stock code 3983. Currently, its production facilities are located in Hainan, Inner Mongolia, Hubei and Heilongjiang, China, with a total designed annual production capacity of 1.84 million tonnes of urea, 1 million tonnes of phosphate and compound fertilisers (mono-ammonium phosphate, di-ammonium phosphate and compound fertiliser), 1.4 million tonnes of methanol, 200,000 tonnes of POM and 70,000 tonnes MMA. It has a deep water port with a designed annual throughout capacity of 18.28 million tonnes in Dongfang city, Hainan province. Boasting continued growth of its brand value, 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. In early 2023, the Company was granted “The Outstanding Listed Enterprise Awards 2022 – Excellent Results Performance” by Capital Media in recognition of its impressive and growing financial results.

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