Dongguang Chemical Limited (the “Company”) and its subsidiaries (the “Group”) are one of the major coal-based urea producers with annualised designed production capacity of approximately 1.1 million.

The Group has an operating history of over 40 years in Hebei Province. Its predecessor, Hebei Dongguang Huafei Factory*(河北省東光縣化肥廠)(“Dongguang Huafei”), was originally established in 1970 as a local state-owned enterprise and was later privatized and reorganized in July 1998. The Group has been operating in the urea industry since 2001 and is an experienced player in the region with long-term and established relationships with customers in the industry.

The Group has developed the production know-how and management which by its long operating history enhances the production efficiency by maximising the quantity and quality of the products while minimizing costs. The Group’s management team has extensive experience and in-depth understanding of the history and future trends of the urea industry in the PRC.

Urea is the Group’s major product and application of urea can be broadly categorised into agricultural and industrial uses. It is widely used as a source of nitrogen in fertilisers and it has wide industrial application, such as production of adhesives, coatings plastics, and cosmetics. The Group also produce and sell by-products of urea, including methanol, liquid carbon dioxide and liquefied natural gas.

The Group has two active production plants with advanced production technologies located at Dongguang County of Cangzhou City, Heibei Province. The production processes are also designed to ensure compliance with PRC environmental laws and regulations and to enhance production efficiency by maximising the quantity and quality of the products and minimising costs.

The Group’s production facilities are strategically located in close proximity to Beijing and Tianjin, as well as the Bohai Economic Rim(環渤海經濟圈) and it has access to major national highways, railways, and major ports of North China including Tianjin international port and Huanghua domestic port. The proximity of these transportations has enabled the Group to obtain the supply of coal timely, and to deliver products to the customers based in Beijing, Tianjin, Hebei Province and the nearby regions, including Heilongjiang Province, Inner Mongolia Autonomous Region, Jilin Province and Liaoning Province in a timely and cost-efficient manner.