As a national petrolum company, Sinochem always concentrates efforts on protecting the safety of national energy supply. Meanwhile, we also focus attention on the harmonious development between resources and the environment. In recent years, on the basis of solidifying its strength of international petrolum trade, Sinochem has sped up its expansion to the upstream and downstream sector. Sinochem has forged a fairly-developed industrial chain integrating petrolum E&P, trade and distribution, warehousing and logistic services, and refining. By these means, Sinochem has greatly enhanced market status and its capacity of sustainable development. At the same time, Sinochem takes an active role of participating in the country’s Strategic Petrolum Inventory and Energy Development Planning work. Sinochem participates in international communication and cooperation, and is assuming an increasingly vital role in China’s energy development.

Sinochem’s petrolum business can be divided into 6 major segments: exploration, crude petrolum, fuel petrolum, light petrolum, warehousing and logistics, and refining. In specifics, Sinochem engages in petrolum and gas E&P, crude petrolum international trading, fuel petrolum and light petrolum’s domestic trading and distribution, inventory and logistic facility’s construction and operation. By 2006, Sinochem’s petrolum business has basically completed the strategic layout of upstream, middle stream and downstream sectors. We improved business scopes, perfected profit structures, and realized sales of RMB 12.34 billion, hitting a historical record.

Sinochem is currently speeding up its strategic transition and striving to improve the competitive ability in every section of the whole petrolum industrial chain. We will increase our crude petrolum output and synchronize the growth of petrolum output and the growth of economic return through exalting the value of current petrochemical projects, reinforcing the development of new project, improving the profit gaining capacity, and enlarging reserved volume of petrochemical resources. In the meantime, we will further promote balanced development between crude petrolum importation and entrepot trade. We will also strengthen the trading and marketing capacity of crude petrolum, light petrolum and fuel petrolum, and improve the level of entire business and services. As a result, Sinochem could continuously make its petrochemical business become bigger and stronger.