China XLX Fertiliser Ltd

DIRECTORS’ REPORTThe directors are pleased to present their report to the members together with the audited consolidated financialstatements of China XLX Fertiliser Ltd. (the Company) and its subsidiary (collectively, the Group) and the balancesheet and statement of changes in equity of the Company for the financial year ended 31 December 2008.DirectorsThe Directors of the Company in office at the date of this report are:Liu XingxuYan YunhuaLi BuwenOng Kian GuanOng Wei JinLi ShengxiaoArrangements to enable directors to acquire shares and debenturesNeither at the end of nor at any time during the financial year was the Company a party to any arrangementwhose objects are, or one of whose object is, to enable the directors of the Company to acquire benefits by meansof the acquisition of shares in or debentures of the Company or any other body corporate.Directors’ interests in shares and debenturesThe following directors, who held office at the end of the financial year, had, according to the register of directors’shareholdings required to be kept under section 164 of the Singapore Companies Act, Cap. 50, an interest in sharesof the Company and related corporations (other than wholly-owned subsidiaries) as stated below:Name of DirectorAt the beginningof financial yearDirect interestAt the end offinancial yearOrdinary shares of the CompanyYan Yunhua 300,000 300,000Ong Kian Guan 100,000 100,000Name of DirectorAt the beginningof financial yearDeemed interestAt the end offinancial yearOrdinary shares of the CompanyLiu Xingxu 343,376,000 343,376,000Yan Yunhua 280,944,000 280,944,000China XLX Fertiliser Ltd.35