China XLX Fertiliser Ltd

ChinaXLXFertiliser Ltd.ureacompound fertilisermethanolWe are one of the largest, most efficient coal-basedproducers of urea and compound fertiliser in the PRC.XLX• “XLX”, which is the acronym of the Chinese phrase“ 心 连 心 ”, means “heart to heart” in English. ChinaXLX mission is to cultivate “A Better Tomorrow”for its stakeholders such as shareholders, customers,employees, environment, etc.WHERE WE ARE• Sixth largest and fourth most efficient coal-basedurea producer in the PRC• Listed in Singapore SGX-ST mainboard on 20 June2007OUR PRODUCTION CAPACITY• Two existing production plants with current annualproduction capacity of 720,000 tons for urea, 300,000tons for compound fertiliser and 100,000 tons formethanol• Third production plant under construction withannual production capacity of 400,000 tons for urea,and 50,000 tons for methanol. New 300,000 tonscompound fertiliser production line to be built insecond plantKEY STRENGTHS• Two existing production plants strategically locatedin Xinxiang, Henan Province• Located near to suppliers- only about 150 kilometresaway from the main coal mines in Shanxi Province,lowering transportation costs• Located near to customers as Henan is epicenter ofagriculture in the PRC• A highly motivated workforce of about 3,100including over 500 mid to highly-skilled technicalpersonnel with staff turnover less than 1%. Out ofthe 2,600 workers, about 1,000 are shareholders ofthe Company• Urea book orders secured by 5-year contract withSinofert (largest fertiliser distributor in the PRC) andnon-binding MOUs• Net gearing at only 37% and long-term loans accountfor about three quarters of total borrowings.OUR ACHIEVEMENTS• Corporate Awards: “ 全 国 石 油 化 工 肥 料 制 造 业 百 强 企业 ”,“ 河 南 省 明 星 民 营 企 业 ”,“ 河 南 省 管 理 创 新 最 佳 单位 ”,and “ 河 南 省 诚 信 纳 税 大 户 ”• Corporate Certifications: ISO09001:2000 andISO014001: 2004• Well-known “ 心 连 心 ” brand and trademark awarded“ 河 南 省 名 牌 产 品 ” and “ 河 南 省 著 名 商 标 ”OUTLOOK• Whilst many uncertainties exist for the fertiliserindustry in China, fertilisers will still play an importantrole in a nation of 1.3 billion people, accounting fora quarter of the world’s population but only covering7% of the world’s arable land. Fertilisers will stillremain a necessity with demand being relativelyinelastic and resilient despite current economicoutlook.• China XLX will remain focused on increasing its size,capturing greater market share and reducing cost,thereby improving its industry position.• Adopted all 18 advanced technologies recommendedby the State Ammonia Association to improve costefficiency. We use about 10% less coal and 20% lesselectricity as compared against the industry averagerespectivelyABOUT US1