Sinopec Shangai Petrochemical C (NYSE:SHI)

HONG KONG, March 26, 2020 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company", together with its subsidiaries known as the "Group") (HKEX: 00338; SSE: 600688;NYSE: SHI) today announced the annual results for the twelve months ended 31 December 2019 (the "Period").

Under the influences of frequent security accidents, industrial zone closures and enterprises' suspension and rectification, China's petrochemical industry faced greater pressure on economic operation. The performance of enterprises declined significantly as the market continued to be weak. The Group actively responded to the complex and severe domestic and international economic and industry situations, and attached great importance to safety and environmental protection, operation optimization, cost reduction, transformation and development, further reform in difficult areas, and team building. All work processed in an orderly manner. Under IFRS, net sales of the Group in 2019 amounted to RMB88,056 million, a decrease of 7.90% from the previous year's RMB95,614 million. Net profit attributable to owners of the Company amounted to RMB 2,216 million, a decrease of 58.47% from the previous year's RMB5,336 million. Basic earnings per share amounted to RMB0.205, and the Board proposed to distribute a dividend of RMB0.12 per share (including tax).

Price of the products fell under weak oil and petrochemical markets

Under the severe and complicated domestic and international economic situations, oil and petrochemical industries faced great pressure.  Price of petrochemical products fell under the sluggish market. As the demand for refined oil products slowed down and supplies increased, product competition became increasingly fierce. As of 31 December 2019, the weighted average prices (excluding tax) of synthetic fibers, resins and plastics, intermediate petrochemical products and petroleum products of the Group decreased by 13.24%, 11.48%, 17.48% and 4.28% year-on-year respectively.

In 2019, the Group processed 15,199,400 tons of crude oil (including 1,064,600 tons of crude oil processing on given materials), up by 5.71% or 820,400 tons year-on-year. The average unit cost of crude oil processed by the Group (proprietary part) was RMB3,330.63/ton, down by 1.53%. The total cost of the Group's crude oil processing was RMB47,077 million, an increase of 1.97% over the previous year's RMB46,168 million, accounting for 54.54% of the total cost of sales.

Further optimized operation and improved the ability to increase efficiency

In 2019, the Group actively promoted the optimization of structure of crude oil, controlled crude oil stock and reduced costs of crude oil procurement. The Group optimized the structure of oil products, increased the output of gasoline, jet fuel and petrochemicals and raised the proportion of high value-added products with a growth rate of 7.41% in gasoline production and 27.95% in jet fuel production as well as a decrease of 0.05 in diesel to gasoline ratio. In addition, the Group encouraged market expansion and boosted sales with the annual exports of heavy low-sulfur marine fuel oil reaching 37,800 tons. The black polyethylene pipe plastic products successfully entered China Gas Holdings with sales increasing by 13.55% year-on-year. Moreover, the Group arranged field visits for technical experts and carried out the establishment of intelligent marketing service system to improve service quality. The Group implemented costs reduction by cutting the annual finance expenses by RMB363 million, a fall of RMB25.6 million year-on-year, strengthened the management of cash flow with a year-on-year decrease of 16.71% in the inventory balance, and controlled the key expenses including repairs, reducing nearly RMB100 million in the actual expenses compared to the goal.

Speed up development and promoted technological innovation

In 2019, the Group started the 400,000 tons/year oil cleaning project, achieved mid-term delivery of the precursor part of the second stage of PAN (Polyacrylonitrile) based carbon fiber project with annual production of 1,500 tons, and completed the Sinopec's demonstration of 48K large tow carbon fiber. The Group vigorously promoted regional cooperation with neighboring SCIP and Zhejiang Dushan Port Economic Development Zone to reach a development consensus on new materials. The Group strengthened technical researches in the field of new energy, made technical improvements on carbon fiber equipment technologies, deepened the updated technology applications of the whole process of refineries, and strived to promote researches on key technologies for low-sulfur marine fuel oil production and fuel cell-level hydrogen supply.

Business plans in 2020

In 2020, the Group will continue to adhere to the market-oriented and efficiency-centered strategy, constantly improve the level of safety and environmental protection, further strengthen system optimization and cost reduction and promote industrial restructuring, reform and innovation as well as the establishment of leader teams to strive to overcome the impact caused by COVID-19, the pressure of the sharp decline of crude oil prices on the Company's short-term performance and maintain stable production and operation. The Company plans to process a total of 15.30 million tons of crude oil and produce a total of 9.27 million tons of refined oil, 0.82 million tons of ethylene, 0.66 million tons of paraxylene, 0.92 million tons of plastic resin, 0.65 million tons of raw materials of synthetic fibers, 0.44 million tons of synthetic fiber polymers and 0.20 million tons of synthetic fibers.

Wu Haijun, Chairman of Sinopec Shanghai, said: "In order to realize the business targets in 2020, the Group will improve the level of safety and environmental protection, keep smooth operation of production devices, improve system optimization, tap the potential for cost reduction and efficiency improvement, accelerate the adjustment of industrial structure, make breakthroughs in core technologies, further strengthen corporate management and advance the reform of management system.

The Group will fully launch the establishment work of "14th Five-Year Plan", actively promote the implementation of refining clean-up transformation and initiate the construction of 48K large tow carbon fiber and third circuit 220KV power line project, ensuring oil cleaning project, the second phase of the carbon fiber project and other projects can be put into production on time. Meanwhile, the Group will build an innovative R&D center for new materials and promote the R&D of carbon fiber composite and industrial cultivation to accelerate the formation of industrial cluster superiority and make more breakthroughs in domestication of key equipment including oxidation furnaces and carbonization furnaces."

HONG KONG, Aug. 22, 2018 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company", HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group"), prepared under International Financial Reporting Standards ("IFRS"), for the six months ended 30 June, 2018 (the "Period").

According to IFRS, turnover for the Group for the Period reached RMB52,161.5 million, representing an increase of 21.08% year-on-year. The Group recorded a profit after income tax and non-controlling shareholder interests of RMB3,551.3 million, representing an increase of RMB952.8 million from the same period last year. Basic earnings per share amounted to RMB0.328 (2017 interim: basic earnings per share of RMB0.241). The Board of Directors did not recommend the distribution of a 2018 interim dividend (2017 interim: Nil).

Mr. Wu Haijun, Chairman of Shanghai Petrochemical, said: "In the first half of 2018, the world economy continued to grow, making the major developed economies relatively strong. Among them, the economic growth of the U.S. was the strongest, with its growth rate outperforming that of last year. The emerging economies maintained a medium-to-high growth rate. Driven by policies such as the supply-side structural reform, China's economy continued to grow steadily. Its economic structure was once again optimized, and its quality and efficiency continued to improve. The trade friction between China and the U.S. became a major uncertainty affecting the stable operation of the domestic economy. With the deleveraging and strict supervision, the scale of domestic financing dropped significantly, and growth of domestic infrastructure investment slowed down sharply. In the first half of the year, gross domestic product (GDP) increased by 6.8% year-on-year, and economic growth continued to remain stable. The economy of China's petrochemical industry continued to improve steadily, with the supply and demand of domestic refined oil and major chemicals basically balanced. The efficiency of the industry further improved. However, the growth of market demand for chemicals was still weak, with weak investment. The Group made substantial efforts in maintaining stable operations of its units, optimizing production and operations, reducing costs and expenses, boosting environmental governance, reform and development, etc., with the Company experiencing relatively good safety and environmental protection work."

In the first half of 2018, net sales of the Group amounted to RMB46,047.1 million, representing an increase of 24.20% over the same period last year. Of these, net sales of synthetic fibers, resins and plastics, intermediate petrochemical products, petroleum products and trading of petrochemical products increased by 8.87%, 9.39%, 29.57%, 44.66% and 5.88%, respectively. The increase in net sales of products was mainly due to a general increase in the unit prices of products during the Period compared with the same period last year.

The Group made substantial efforts in maintaining stable operations of its units, optimizing production and operations, reducing costs and expenses, environmental governance, reform and development, etc. The total production volume of the Group reached 7,396,800 tons, representing a year-on-year increase of 21.35%. The Group processed 7,343,900 tons of crude oil (including 386,900 tons of crude oil processed on a sub-contract basis), representing a year-on-year increase of 7.93%. The production volume of refined oil products in total reached 4,317,700 tons, representing a year-on-year increase of 6.23%. Among these, the output of gasoline was 1,630,900 tons, representing a year-on-year increase of 7.54%; the diesel output was 1,947,300 tons, representing a year-on-year increase of 7.82%; and the jet fuel output was 739,500 tons, representing a year-on-year decrease of 0.32%. The Group produced 402,500 tons of ethylene and 329,900 tons of paraxylene, representing a year-on-year increase of 13.25% and 15.84%, respectively. The Group produced 484,000 tons of synthetic resins and plastic (excluding polyesters and polyvinyl alcohol), representing a year-on-year increase of 4.09%; 334,000 tons of synthetic fiber monomers, representing a year-on-year increase of 3.86%; 201,900 tons of synthetic fiber polymers, representing a year-on-year decrease of 0.25%; and 86,700 tons of synthetic fibers, representing a year-on-year decrease of 9.40%. For the first half of the year, the sales to output ratio and debt recovery ratio of the Group were 99.77% and 100%, respectively.

In the first half of 2018, international crude oil prices rose amid continued production cuts in major oil-producing countries, strong global demand and escalating geopolitical factors in the Middle East. The average unit cost of crude oil processed by the Group (for its own account) was RMB3,067.71/ton, representing a year-on-year increase of 15.60%. In the first half of 2018, the Group's cost of crude oil accounted for 50.68%of the total cost of sales.

The Company continued to promote project construction and technological innovation. In the first half of the year, the Company's "13th Five-Year Plan" industrial development was further improved. The Company completed the project to transform the cogeneration unit to be in compliance with emission reduction. The oil product clean-up project also made progress. The Company started projects such as No. 2 safe and eco-friendly closed decoking, transportation and waste gas treatment of delay coking facility, third circuit incoming power lines with a supply capacity of 220KV, second stage construction of carbon fiber, etc. The Company's research and development ("R&D") focused on the development of new industries of high-performance materials, high value-added synthetic materials and new refining products, new fine chemical engineering, and applications of new technologies and materials for refining. Market development of colored high-end acrylic fiber products was stepped up and the newly developed modified PVA products and scratch-resistant pipe materials were put into industrial production. With the focus on strengthening the research of carbon fiber technology and expanding the scope of application, the R&D of 48K was a success and passed the appraisal. The carbon fiber pultruded sheet was first used in tunnel reinforcement engineering.

Mr. Wu Haijun said: "Looking forward to the second half of 2018, the world economy will be exposed to more risks. With many multilateral rules and institutions formed after the Second World War facing major challenges, especially in global trade, and market turmoil brought about by the spillover effects of the return of normalization of monetary policies of major powers increasing, the uncertainty of world economic development will increase. The financial risks of China regarding financing difficulties and credit defaults will increase as the downward pressure of the economy increases; however, under the effect of supply-side structural reform, innovative entrepreneurship and steady growth policies, and relatively strong resilience, potential and stability of China's economic growth, it is expected that the domestic economy will only moderately decline in the second half of the year. The launch of a series of new environmental protection policies for China's petrochemical industry will increase the costs incurred and pressures on the development of the entire industry. Sizable private refining projects with scale and technological advantage will gradually enter the production period, and market competition will become more intense. In the second half of the year, the Group will further focus on improving development quality and efficiency, and solidly promote environmental protection, system optimization, reform and development, and accomplish the full-year goals and tasks."

Shanghai Petrochemical is one of the largest petrochemical companies in China in terms of sales revenue, and was one of the first Chinese companies to complete a global securities offering. Located in the Jinshan District in southwest Shanghai, the Group is a highly-integrated petrochemicals enterprise which processes crude oil into a broad range of products such as synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products.

Revenue Increases by 18.13% to RMB91,962 Million

Continuously Tamping the Foundation of Production and Operation

Continuous Optimization of Operation and Cost Reduction

HONG KONG, March 21, 2018 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEX: 00338; SSE: 600688; NYSE: SHI) today announced the audited operating results of the Company and its subsidiaries (the "Group") prepared under International Financial Reporting Standards ("IFRS") for the year ended 31 December 2017 (the "Year").

According to IFRS, revenue of the Group for the Year increased by 18.13% to RMB91,962 million. The net profit attributable to owners of the Company was RMB6,143.2 million, representing an increase of 2.93% compared to last year. Basic earnings per share amounted to RMB0.569 (2016: RMB0.553). The Board of Directors proposed the distribution of final dividend in respect of the year ended 31 December 2017 of RMB0.30 per share (including tax) for the Year (2016: RMB0.25 per share).

Mr. Wu Haijun, Chairman of Shanghai Petrochemical, said, "In 2017, the world economy had shown strong recovery with accelerated growth of developed economies and overall growth rally of emerging and developing economies. China had pushed forward supply-side structural reform to continue to release economic vitality, power and potential, which achieved national economy in stable state with good momentum and annual GDP (gross domestic product) growth of 6.9% that was better than expectation. China's petrochemical industry was operated in stable trend with good momentum with basically steady production, overall stable market demands, risen product price and improved industrial efficiency. During the year, centered on overall efficiency and profits, the Group made great efforts to seize the favorable market situation and actively carried out safety and environmental protection, optimizing operation, market development and cost reduction, which achieved good results in production and operation and created a high level of economic benefits in history."

In 2017, the Group's net sales amounted to RMB79,218.3 million, representing an increase of 20.14% year-on-year. Benefited from the increase in the costs of raw materials, the sales price grew generally compared to the last year. Net sales of synthetic fibres, resins and plastics, intermediate petrochemicals, petroleum products and trading of petrochemical products increased by 8.07%, 4.30%, 14.08%, 34.99% and 15.12%, respectively. 

The Group operated facilities smoothly during the Year. Basically flat processing volume of crude oil and less processing business made increasing amount of product and commodity of the Group with total volume of commodities of 13,717,500 tons, increasing 6.91% than in last year. Compared with last year, the Group processed 14,352,800 tons of crude oil in 2017 (including 1,605,600 tons of processing on given materials) with slight increase of 0.35%. The Group produced 3,166,100 tons of gasoline, up by 9.98%; 3,863,800 tons of diesel, down by 0.47%, and 1,574,100 tons of jet fuel, down by 1.51%. The Group produced 766,900 tons of ethylene, down by 7.11%; 632,900 paraxylene, down by 5.62%. The product sales rate was 99.80% and the loan return rate was 100%. The product continued to keep high quality.

In 2017, international crude oil prices showed a V-shaped trend. The average unit cost of crude oil processed by the Group (for its own account) was RMB2,581.35 per ton, up by 30.40% over the previous year. The Group's cost of processing crude oil in 2017 accounted for 45.45% of the total cost of sales.

For the Year under review, the Group continuously tamped the foundation of production and operation. It continued to strengthen Health, Safety and Environment management, made clear responsibilities of production safety for correspondent parties, carried out risk identification and control, as well as continuously developed hidden danger troubleshooting activities in different ways and made rectification. In addition, it intensified the source control of environmental protection and paid special attention to the equipment maintenance, so as to enhance process management and smoothly complete overhaul and realized normal establishment and stable operation. On the other hand, the Group continued to optimize its production and operation, and costs reduction to strive to expand its margin. The Group accurately grasped the pace of crude oil procurement, controlled reasonable crude oil inventory, strengthened storage and transportation management of crude oil and reduced the cost of crude oil. Also, it actively strived for the optimal allocation of refined oil, optimized gasoline blending by measures of optimization and adjustment of catalytic device operation and outsourcing processing of low octane components to try to improve the gasoline production and high-grade gasoline ratio.

Looking forward, Mr. Wu Haijun said, "In 2018, the world economy is expected to continue its recovery momentum. China will continue to maintain the general keynote of work which is to make progress while ensuring stability; continue with the supply-side structural reform as the main direction; and make overall plans for carrying out various tasks to maintain growth, boost reforms, readjust the structure, improve people's livelihood and prevent risks. China's economy is anticipated to remain stable with good development momentum. As the escalating global economy will fuel an increasing demand for petrochemical products, the global petrochemical industry is expected to remain stable with a rise trend in 2018. Since the supply-side reform is proceeding and the growth in downstream demand remains stable in China, the petrochemical industry is expected to continue to see structural improvement to the supply and demand. However, since there is no fundamental change in the imbalance between the supply-side structural surplus and the structural shortage in the domestic refined oil market and petrochemicals market, the expansion of the scale of domestic large private refining and petrochemical enterprises and the recovery of coal chemical production capacity will further intensify market competition in the future. In 2018, the Group will continue to adopt a market-oriented and benefit-centred approach, step up safe and green development as well as the management of production and operation, optimize resources allocation and tone up structural adjustment, striving to maximize the overall value."

Shanghai Petrochemical is one of the largest petrochemical companies in China in terms of sales revenue and was one of the first Chinese companies to complete a global securities offering. Located at Jinshanwei in southwest Shanghai, the Group is a highly integrated petrochemicals enterprise which processes crude oil into a broad range of products such as synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum products.

HONG KONG, October 22, 2015 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") for the nine-month period ended September 30, 2015 (the "Period").

Revenue for the Period amounted to RMB61.558 billion (corresponding period of 2014: RMB76.719 billion).

 Basic earnings per share amounted to RMB0.208 (corresponding period of 2014: basic loss per share of RMB0.014).

Mr. Wang Zhiqing, Chairman of Shanghai Petrochemical, said, "In the first three quarters of 2015, international crude oil prices continued to fluctuate at low levels, leading to a significant decrease in the Group's cost of major raw materials and an increase in gross profit of its products. The Group recorded profit for the first three quarters ended 30 September 2015 as opposed to the loss recorded for the same period last year. The Group will continue to ramp up its efforts in structure optimization, cost-saving and profit-increasing, and will enhance efforts in safety and environmental protection, production and operations, as well as intensification of its management. The Group will continue to endeavor to maximize economic benefits for sustainable growth, and to maintain a good momentum in its operations.".

HONG KONG, August 28, 2015 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group"), prepared under International Financial Reporting Standards ("IFRS"), for the six months ended 30 June, 2015 (the "Period").

According to IFRS, turnover for the Group for the Period reached RMB42,125.5million, representing a decrease of 17.96% year-on-year. The Group recorded profit after income tax and non-controlling shareholder interests of RMB1,770.9 million (2014 interim: loss after income tax and non-controlling shareholder interests of RMB123.6 million). Basic earnings per share amounted to RMB0.164 (2014 interim: basic loss per share of RMB0.011). The Board of Directors did not recommend the distribution of 2015 interim dividend (2014 interim: Nil).

Mr. Wang Zhiqing, Chairman of Shanghai Petrochemical, said, "The global economy experienced a tortuous and slow recovery. Amidst such a complicated domestic and foreign economic environment and facing growing downward pressure, the PRC economy managed to show a slow-yet-steady development trend with growth within a reasonable range as a result of macroeconomic regulation and control and innovative reforms, signaling a further slowdown in economic growth. In the first half of the year, the PRC petrochemical sector generally remained stable. The performance of the refining sector continued to improve, and the petrochemicals sector even witnessed relatively rapid profit growth. Nonetheless, the market demand was still rather weak, with an overall slowdown in petroleum and petrochemical consumption growth. Overcapacity in the industry was overwhelming, market competition intensified further. Amidst complicated and severe market conditions in the first half of 2015, the Group strived to maintain steady operation in terms of safety, environmental protection and production, while ramping up efforts in structure optimization, cost-saving and profit-increasing."

In the first half of 2015, the Group's net sales reached RMB35,064.6 million, representing a decrease of 24.90% year-on-year. Of this, net sales of synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum products declined by 13.46%, 11.35%, 27.54% and 35.33%, respectively. Net sales from the trading of petrochemical products increased by 2.20%.

In the first half of 2015, the total volume of goods produced by the Group amounted to 7,117,700 tons, representing an increase of 6.85% year-on-year. From January to June, the Group processed 7,348,700 tons of crude oil (including 687,400 tons of crude oil processed on a sub-contract basis), representing an increase of 1.70% year-on-year. Total production of refined oil products reached 4,412,300 tons, representing an increase of 3.79% year-on-year. Of this, the output of gasoline was 1,491,200 tons, representing a decrease of 1.55% year-on-year; the output of diesel was 2,141,400 tons, representing an increase of 5.32% year-on-year; and the output of jet fuel was 779,700 tons, representing an increase of 10.88% year-on-year. The Group produced 423,500 tons of ethylene and 340,900 tons of paraxylene, representing an increase of 4.65% and a decrease of 6.50% year-on-year, respectively. The Group also produced 531,900 tons of synthetic resins and plastic (excluding polyesters and polyvinyl alcohol), representing an increase of 9.02% year-on-year; 424,700 tons of synthetic fibre monomers, representing an increase of 17.42% year-on-year; 217,700 tons of synthetic fibre polymers, representing an increase of 6.35% year-on-year; and 115,800 tons of synthetic fibres, representing a decrease of 0.94% year-on-year. During the Reporting Period, the Group's output-to-sales ratio and receivable recovery ratio were 99.03% and 100.01%, respectively.

In the first half of 2015, the global supply of crude oil remained high, and due to a potential rebound in demand and a pending slowdown in oil production, global crude oil prices experienced a decline before showing a fluctuating rising trend, then leveling off. The average unit cost of crude oil processed (for the Group's own account) was RMB2,652.96 per ton, representing a decrease of RMB2,213.98 per ton, or 45.49% year-on-year. The Group's cost of crude oil accounted for 54.06% of the total cost of sales.

During the Period, the Group ramped up inspection efforts for the sake of safety and environmental protection, and successfully passed the Clean production check and acceptance conducted by the Shanghai Clean Production Center. The Group further advanced quantitative patrols and checks on equipment, thereby eliminating facilities hazards and realizing the stable and long-term operation of production devices. Meanwhile, the Group integrated its optimization model for the full process flow of oil refining, placed emphasis on estimating the cost-performance of different kinds of crude oil and optimized its crude oil structure. It also reinforced the tracking of marginal contribution from petrochemical facilities and adherence to dynamic optimization mechanisms with the aim of boosting efforts in further optimization to its integrated refining and petrochemical system. In respect of the implementation of key scientific research projects, the Group continued to make progress and facilitated industrial development and market exploration for its new products. The Group developed and produced 150,900 tons of new products, and submitted 22 patent applications, with nine patent authorizations granted. With the in-depth development of an e-commerce sales model for its products, the Group gradually increased the types and quantities of petrochemical products traded online on its e-commerce platform. The Group worked hard to promote its integrated management system and to optimize business flow. In April, the Group was duly recognized by the Ministry of Industry and Information Technology as one of the very first batch of enterprises to meet the national standards for management systems in regard to the integration of informatization and industrialization.

Looking ahead, Mr. Wang Zhiqing said, "In the second half of 2015, the global economy will continue to be in a stage of deep adjustments. The environment is less optimistic, with the sluggish economy struggling to recover and the major economies demonstrating diverse development trends. The Chinese economy realized a slow-yet-stable performance within a reasonable range in the first half of the year. However, as the economy is still under great pressure to maintain steady growth, to adjust structure, to continue its reforms and to be innovative, it will continue to face downward pressure in the second half of the year. The prospects for the petrochemical industry will remain complicated. Overcapacity persists, along with weakening innovation abilities and relatively low product grades, resulting in internal pressure on the operation of the industry. Meanwhile, with the government continuing to strengthen its policies to support steady growth, market demand has increased steadily and the prices of petroleum and petrochemical products have continued to stabilize. The petrochemical industry in China is expected to continue to undergo steady development in the second half of the year. Facing a challenging market environment, we will focus on enhancing the quality and efficiency of its development and will continue to step up efforts in safety and environmental protection, production and operations, system optimization, cost-saving and expenses reduction as well as intensification of its management. The Group will also enhance its efficiency."

HONG KONG, April 23, 2015 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") for the three-month period ended March 31, 2015 (the "Period").

Under the China Accounting Standards for Business Enterprises, the Group's revenue for the Period amounted to RMB19.630 billion (corresponding period of 2014: RMB24.114 billion). It recorded an operating profit of RMB63 million (corresponding period of 2014: an operating loss of RMB60 million). Net profit attributable to equity shareholders of the Company was RMB52 million (corresponding period of 2014: net loss attributable to equity shareholders of the Company of RMB73 million). Basic earnings per share was RMB0.005 (corresponding period of 2014: basic loss per share of RMB0.007).

Mr. Wang Zhiqing, Chairman of Shanghai Petrochemical, said, "In the first quarter of 2015, international crude oil prices fluctuated at low levels, leading to a decrease in the Group's costs of crude oil processing and an increase in the gross profit of its products. The Group recorded profit for the first quarter ended 31 March 2015 as opposed to the loss recorded for the same period of last year. The Group will continue its efforts in safety and environmental protection. It will also maintain stable production and operations while focusing on industrial structure adjustment and improvement of products. The Group will further strengthen its internal management and endeavour to maximize economic benefits for sustainable growth, and will maintain a good momentum in its operations."

Shanghai Petrochemical is one of the largest petrochemical companies in China in terms of sales revenue and was one of the first Chinese companies to complete a global securities offering. Located at Jinshanwei in southwest Shanghai, the Group is a highly integrated petrochemicals enterprise which processes crude oil into a broad range of products such as synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum products.

HONG KONG, August 29, 2014 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") prepared under International Financial Reporting Standards ("IFRS") for the six months ended 30 June, 2014 (the "Period").

According to IFRS, turnover for the Group for the Period reached RMB51,345 million, representing a decrease of 10.06% year-on-year. The Group recorded loss after income tax and non-controlling interests of RMB123.6 million (2013 interim: profit after tax and profit attributable to non-controlling interests of RMB473.2 million). Basic loss per share was RMB0.011 (2013 interim: basic earnings per share amounted to RMB0.044, based on a total number of 10.8 billion shares). The Board of Directors did not recommend the distribution of 2014 interim dividend (2013 interim: issuing 3.36 shares for every 10 shares to all shareholders by the premium of capital fund, and 1.64 shares for every 10 shares by surplus fund, as well as distributing cash dividend of RMB0.50 (VAT inclusive) for every 10 shares to all shareholders).

Mr. Wang Zhiqing, Chairman of Shanghai Petrochemical, said, "In the first half of 2014, the PRC economy gradually stabilised despite of a slowdown, maintaining stable growth within a reasonable range and signaling a further slowdown in economic growth. The PRC petrochemical market was impacted by weakened growth of market demand and a relatively rapid increase in production capacity. The petrochemical product market remained sluggish with further intensifying competition in the industry. Facing the challenging operating environment, the Group tackled the challenges head-on to maintain smooth operations of its plants. It thoroughly implemented system optimisation. The Group also continued its efforts in technological advancement and digitisation of information, further strengthening internal corporate management and cutting its losses by optimising production efficiency."

In the first half of 2014, the Group's net sales reached RMB46,690.8 million, representing a decrease of 10.49% year-on-year. Of this, net sales of synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum products declined by 11.84%, 13.23%, 29.97% and 9.00% respectively. Net sales of trading of petrochemical products rose by 18.21%.

Under challenging economic conditions during the Period, the Group lowered crude oil processing volume in view of the market conditions, upstream and downstream material balance and plant maintenance, which reduced the total volume of goods produced by 12.84% year-on-year. During the Period, the Group processed 7,225,700 tons of crude oil (including 730,900 tons of crude oil processed on a sub-contract basis), representing a decrease of 6.25% year-on-year. Total production of refined oil products reached 4,251,200 tons, representing a decrease of 4.45% year-on-year. Of this, the output of gasoline was 1,514,700 tons, representing an increase of 9.63% year-on-year; output of diesel was 2,033,300 tons, representing a decrease of 19.15% year-on-year; and output of jet fuel was 703,200 tons, representing an increase of 27.16% year-on-year. The Group produced 404,700 tons of ethylene and 364,600 tons of paraxylene, representing a decrease of 15.46% and 20.20% year-on-year respectively. The Group also produced 487,900 tons of synthetic resins and plastic (excluding polyesters and polyvinyl alcohol), representing a decrease of 11.31% year-on-year; 361,700 tons of synthetic fibre monomers, representing a decrease of 19.34% year-on-year; 204,700 tons of synthetic fibre polymers, representing a decrease 22.70% year-on-year; and 116,900 tons of synthetic fibres, representing a decrease of 8.39% year-on-year. The Group's output-to-sales ratio and receivable recovery ratio were 100.54% and 100.00% respectively for the Period.

In the first half of 2014, global crude oil maintained the balance between supply and demand. International crude oil prices were volatile in an upward trend mainly due to the impact of the geopolitical situation. The average unit cost of crude oil (for the Group's own account) was RMB4,866.94 per ton, representing an increase of 0.28% year-on-year. The Group's cost of crude oil accounted for 68.38% of the total cost of sales.

During the Period, the Group continually enhanced its management of process technology for its plants while improving technical and economic indicators. The first phase of production plant maintenance for the year, with a focus on residual oil hydrogenation plants, was completed. The Group continued to tighten its management of specialised equipment, key units and gear transmission equipment, as well as anti-corrosion for equipment and management of heaters. The Group continued to leverage its competitive strengths in the integration of its refinery and petrochemical segments. Tapping fully on the high flexibility of its refinery plants, the Group increased the procurement and refining volume of low-grade crude oil and increased its focus on crude oil procurement, which contributed to lower crude oil cost. Refinery and petrochemical production were also optimised. The Group further strengthened refined oil product structure by lowering production of several lower-margin petrochemical products and boosting production of high-end gasoline. The Group enhanced the contribution margin tracing of the plants, and suspended production at some plants in phases while prioritising the production of more profitable and marketable products in line with market conditions. Through various innovative financing methods, the Group successfully implemented various offshore financing measures such as overseas agency payments and risk participation, lowering its capital costs. During the Period, China Jinshan Associated Trading Corporation, the Group's holding subsidiary, has established the Shanghai Jinshan Trading Corporation. in the Shanghai Free Trade Pilot Zone to further expand the Group's trading segment, increase its trading volume, expand its financing channels, and lower financing costs.

Looking ahead, Mr. Wang Zhiqing said, "In the second half of 2014, the global economy is expected to be slightly improved over the first half. With reforms and policy adjustments, the PRC economy is expected to be relatively stable. Given the stable economy and the rebound in demand in the PRC, the petrochemical industry is expected to undergo steady and moderate growth. International oil prices are expected to continue to fluctuate at a prevailing high level. Facing a challenging market environment, we will focus on improving the quality and efficiency of our development, and will continue to focus on safety and environmental protection as well as stable production. The Group will continue to consolidate its system optimisation, cost reductions and strict management, as it strives to seize the opportunities arising from the favorable market environment and to achieve a turnaround in its efficiency."

HONG KONG, March 28, 2014 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the audited operating results of the Company and its subsidiaries (the "Group") for the year ended December 31, 2013 (the "Year").

Under the International Financial Reporting Standards ("IFRS"), revenue of the Group for the Year amounted to RMB115,490.3 million, representing an increase of 24.17% over the previous year. Net profit attributable to owners of the Company amounted to RMB2,055.3 million (2012: net loss attributable to owners of the Company of RMB1,528.4 million). Based on the Company's total issued share capital of 10.8 billion shares as of 31 December 2013, basic earnings per share was RMB0.190 (2012: basic loss per share of RMB0.142). The Company implemented the interim dividend distribution of five additional shares as well as an interim cash dividend of RMB0.50 (including tax) for every 10 shares last year. The Board proposed to distribute a dividend of RMB0.50 per 10 shares (including tax), based on a total number of 10.8 billion shares as at 31 December 2013.

Mr. Wang Zhiqing, Chairman of Shanghai Petrochemical, said, "In 2013, the petroleum and petrochemical markets in China remained sluggish, complicated by factors such as increased downward pressure on the economy, a weak recovery in downstream demand and significant problems with overcapacity. Facing such complex market conditions, the Group focused on its target of establishing a refining and petrochemical enterprise which is 'Leading in China, First-class in the world' and improved the quality and efficiency of development. With its market-orientated approach, the Group took full advantage of its Refinery Revamping Expansion Project by working on aspects of production, operation and development so as to improve the safety and environmental-friendliness of its plants, maintain stable production and operations, and further develop its optimization programmes. The Company's major production facilities recorded stable and high volumes of through-put. Remarkable results were achieved through meticulous management, bring significant improvements to efficiency."

For the year ended December 31, 2013, the Group's net sales amounted to RMB105,503.2 million, representing an increase of 20.97% from RMB87,217.3 million over the previous year. Since the petrochemical market remained sluggish and the market prices of petrochemical products fell substantially, the weighted average prices (excluding tax) of the Group's synthetic fibres, intermediate petrochemical products, and petroleum products decreased by 1.83%, 11.08% and 0.15% from 2012, respectively. The weighted average price (excluding tax) of resins and plastics increased by 1.92% over that of 2012.

In 2013, physical production volumes experienced substantial growth after the completion and operation of the Refinery Revamping Expansion Project of the Company, with the total volume of goods produced amounting to 15,604,300 tons, an increase of 31.75% over the previous year. During the year, the Group processed 15,667,800 tons of crude oil (including 811,800 tons of crude oil processed on a sub-contract basis), representing an increase of 39.97%. Total production output of gasoline, diesel and jet fuel amounted to 9,072,600 tons, representing an increase of 54.33%, with the Group producing 2,871,500 tons of gasoline, 4,931,200 tons of diesel and 1,269,900 tons of jet fuel, representing increases of 181.44%, 22.43% and 52.89%, respectively. The Group produced 953,300 tons of ethylene and 611,800 tons of propylene, representing increases of 4.22% and 21.29%, respectively. The Group produced 939,200 tons of paraxylene, representing an increase of 8.43%. The Group also produced 1,129,900 tons of synthetic resins and copolymers (excluding polyesters and polyvinyl alcohol), representing an increase of 3.90%; 877,100 tons of synthetic fibre monomers, representing a decrease of 13.64%; 523,500 tons of synthetic fibre polymers, representing a decrease of 17.70%; and 252,800 tons of synthetic fibres, representing an increase of 0.48%. Meanwhile, the Group continued to maintain a premium level of quality in its products. Its output-to-sales ratio and receivable recovery ratio were 100.07% and 100.00%, respectively. The value of the Group's annual imports and exports amounted to US$11,256 million, representing an increase of 24.84%.

In 2013, supply and demand in the world petroleum market remained relatively strong throughout the year, and international crude oil prices experienced severe fluctuations at a high level. The Group's total costs of crude oil processing reached RMB71,593.0 million in 2013, representing an increase of 28.91% compared to RMB55,538.0 million for the previous year. The Group's profit from operations amounted to RMB2,192.3 million in 2013, representing an increase in profit of RMB3,964.7 million as compared to a loss from operations of RMB1,772.4 million in the previous year.

In 2013, the completion and operation of the Refinery Revamping Expansion Project, which boosted the Company's ability to process high-sulfur crude oil and the production capacity for refined oil. This has enhanced the Company's product structure, with more potential for raw material optimization, much greater improvement in the raw material quality of ethylene and aromatics, and a clear decrease in production costs. In addition, the Company continued its effort in optimization and rectification work under the Refinery Revamping Expansion Project. During the year, it implemented 3,000 tonnes/year n-amylene and 100,000 tonnes/year EVA projects with a total investment of RMB1,317 million. Meanwhile, new products featuring new technologies and energy and water saving equipment projects were certified. A total of RMB7,742,000 in subsidies was granted by the Shanghai municipal government.

In 2013, the Company proactively communicated with the non-circulating A-Shares shareholder to carry out the tasks related to the A-share reform. The Company was notified by the controlling shareholder, China Petroleum & Chemical Corporation on the proposed the commencement of planning and preparation of the A-share reform scheme on 30 May. The Company disclosed the A-share reform scheme on 8 June and disclosed the adjusted share reform scheme on 20 June. The Company committed the best efforts through numerous means to secure the support of and enhance communication with the holders of A-share circulating shares, such as through roadshows, online interaction, telephone discussion and so forth. Finally, the A-shares reform scheme was approved. This matter of share reform, which has been an unresolved issue for the Company for many years, has finally reached a satisfactory conclusion.

Looking forward, Mr. Wang Zhiqing said, "The world economy will remain complicated in 2014. The petrochemical industry in China is expected to remain sluggish and the weak market trend for petrochemical products will be similar to that of 2013. Under the challenging conditions in production and operations, the Group will continue its efforts into safety and environmental protection, as well as ensure the stable operation of our facilities. We will continue to exploit the potential in its refining and renovation projects and the integrated refining system to achieve sustainable development."

HONG KONG, Oct. 28, 2013 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") for the nine-month period ended September 30, 2013 (the "Period").

Under the China Accounting Standards for Business Enterprises, the Group's revenue for the Period amounted to RMB86.356 billion (corresponding period of 2012: RMB69.153 billion). It recorded an operating profit of RMB1.395 billion (corresponding period of 2012: an operating loss of RMB2.237 billion). Net profit attributable to equity shareholders of the Company wasRMB1.004 billion (corresponding period of 2012: net loss attributable to equity shareholders of the Company of RMB1.609 billion). Basic earnings per share was RMB0.139 (corresponding period of 2012: basic loss per share of RMB0.224).

Mr. Wang Zhiqing, Shanghai Petrochemical's Chairman, said, "Since the Refinery Revamping and Expansion Project was fully completed and put into operation at the end of 2012, the Group's existing crude oil processing capacity and adaptability were enhanced in the first three quarters of 2013, and the room for optimising it intermediate raw materials and product mix had further expanded, which led to improved ability of the Company to achieve profitability on its refinery operations. Although the market petrochemical prices did not show a clear uptrend, overall prices remained stable. We believe that the Group will return to profitability for the financial year of 2013. The Group will continue to focus on improving the quality and efficiency of its development and will give fully play to the advantage of the Refinery Revamping and Expansion Project by focusing on production safety, environmental protection and stable operation through employing systematic optimisation and upgrade as a means to achieve the Group's annual target."

HONG KONG, Aug. 28, 2013 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") prepared under International Financial Reporting Standards ("IFRS") for the six months ended June 30, 2013 (the "Period").

According to IFRS, turnover for the Group for the Period amounted to RMB57,085.9 million, representing an increase of 22.92% over the corresponding period of the previous year. The Group recorded profit after taxation and non-controlling interests of RMB473.2 million, an increase of RMB1,624.7 million year-on-year (2012 interim: loss after taxation and non-controlling interests ofRMB1,151.5 million). Basic earnings per share amounted to RMB0.066 (2012 interim: basic loss per share of RMB0.160).

Mr. Wang Zhiqing, Chairman of Shanghai Petrochemical, said, "In the first half of 2013, facing a very complex domestic and international economic environment, China continued to focus on improving the quality and efficiency of economic growth and holding firm to the overall theme of seeking progress while maintaining stability in order to maintain steady economic growth. However, economic growth continued to slow. In the first half of the year, demand for petroleum and chemical products in Chinaremained sluggish, complicated by a slowdown in growth in the consumption of petroleum and petrochemical products and a slackening rate of growth in the development of the industry. Facing a challenging business environment in the first half of 2013, the Group fully utilized the strength of its Refinery Revamping and Expansion Project in a safe and smooth operation, market-oriented and higher economic return-focused approach to further improve safety and environmental protection conditions and to maintain stable production and business operations, leading to a significant year-on-year improvement in its operating results."

In the first half of 2013, net sales of the Group reached RMB52,162.2 million, representing an increase of 19.62% over the same period of the previous year. Of this, net sales of petroleum products, intermediate petrochemical products and trading of petrochemical products increased by 43.68%, 4.67% and 7.01%, respectively. Net sales of synthetic fibres, resins and plastics declined by 4.59% and 8.91%, respectively.

During the period, due to the commencement of the Refinery Revamping and Expansion Project, the output of refined products increased significantly, with the total volume of goods produced increasing by 29.45% year-on-year. During the period, the Group processed 7,707,300 tons of crude oil (including 350,400 tons of crude oil processed on a sub-contract basis), representing an increase by 39.67%, year-on-year. Total production of refined oil products reached 4,449,300 tons, representing an increase of 55.24% year-on-year. Of this, the output of gasoline was 1,381,600 tons, representing an increase of 215.79% year-on-year; the output of diesel was 2,514,800 tons, representing an increase of 22.29% year-on-year; and the output of fuel was 553,000 tons, representing an increase of 48.62% year-on-year. The Group produced 478,700 tons of ethylene, a decrease of 0.23% year-on-year; and 456,900 tons of paraxylene, an increase of 7.46% year-on-year. The Group also produced 550,100 tons of synthetic resins and plastic (excluding polyesters and polyvinyl alcohol), representing a decrease of 2.71%; 448,400 tons of synthetic fibre monomers and 264,800 tons of synthetic fibre polymers, representing decreases of 12.56% and 18.95%, respectively; and 127,600 tons of synthetic fibres, representing an increase of 2.16%. In the first half of 2013, the Group's output-to-sales ratio and receivable recovery ratio were 99.74% and 99.34%, respectively.

In the first half of 2013, the trend of international crude oil prices was volatile, fluctuating within a relatively narrow range. The Group's average unit cost of crude oil was RMB4,853.39 per ton, representing a decrease of 11.20% year-on-year. During the first half of the year, the Group's cost of crude oil accounts for 69.56% of the total cost of sales.

The full operation of the Refinery Revamping and Expansion Project has given a boost to the Group's crude oil processing capacity. With higher adaptability in crude oil processing, the Group's high-sulfur crude oil processing capacity was enhanced considerably. The enhanced capacity, along with the optimization of the Group's raw materials composition, brought the Group's production costs down significantly. During the period, the Group fully utilized the strengths of the Refinery Revamping and Expansion Project and fully implemented optimization and efficiency enhancement measures, bringing significant improvements to the Group's operating results. The refinery segment turned a loss into profit in one stroke during the period, indicating that overall efforts to optimize efficiency have been effective.

In the first half of the year, the Company continued to push forward the progress of the A-share reform scheme. The Company committed its best efforts to securing the support of the holders of circulating shares to the A-share reform scheme through numerous methods, such as roadshows, online interaction, telephone discussion and other means to enhance communications with its shareholders. On 8 July, the shareholders approved the A-shares reform scheme through online and on-site voting.

Looking forward, Mr. Wang Zhiqing said, "In the second half of 2013, global economic growth may encounter a further slowdown, while the Chinese economy will maintain steady growth momentum. With the support of the Chinese government, the overall domestic consumers market will continue to grow steadily, while the growth in market demand for energy and bulk chemical products will accelerate, and the industrial economy will likely remain stable with a slight improvement in the second half. The trend of international crude oil prices for the second half will depend on various factors such as the seasonal increase in demand, the global economic recovery and the geo-political situation in the Middle East. The trend of international crude oil prices will likely be relatively stable in the second half. The pricing mechanism for refined oil products launched by the Chinese government in the first half of the year brought the industry one step forward closer to marketization, and increased the flexibility in reflecting changes in international markets. Such a move will help to stabilize and improve the Company's refinery segment.

Facing a very complex domestic and international economic environment in the second half, we will focus on improving the quality and efficiency of our development and will continue to prove the strengths of the new Refinery Revamping and Expansion Plant by focusing on safety and environmental protection as well as stable production and by employing system optimization and upgrade as a means to accomplish the objectives and tasks for the whole year. These include continuing to accomplish tasks in safety and environmental protection, with a focus on green, low-carbon development; continuously improving the optimization of production and operation systems to maximize efficiency; further extrapolating the production potential of our plants and equipment and to push forward the construction of follow-on development projects; accelerating the push for a batch of key research projects as well as the pace of technological improvement and improvements in information technology; pushing forward follow-up work related to the A-share reform scheme to plan for future development as a platform for the development of related business of Sinopec; further strengthening corporate management and capital operation to enhance the management standard and performance on an ongoing basis; and strengthening the establishment of a staff team that will create a stable and harmonious environment for the Company's development."

HONG KONG, April 19, 2013 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") for the three-month period ended March 31, 2013 (the "Period").

Under the China Accounting Standards for Business Enterprises, the Group's operating income for the Period amounted to RMB28.857 billion (corresponding period of 2012: RMB23.550 billion). It recorded an operating profit of RMB254 million(corresponding period of 2012: an operating loss of RMB243 million). Net profit attributable to equity shareholders of the Company was RMB173 million (corresponding period of 2012: net loss attributable to equity shareholders of the Company ofRMB190 million). Basic earnings per share was RMB0.024 (corresponding period of 2012: basic loss per share of RMB0.026).

Mr. Wang Zhiqing, the newly elected Chairman, said, "In the first quarter of 2013, the global situation remained complex and volatile, and the Chinese domestic economy did not show obvious growth momentum, while demand for petrochemicals continued to be sluggish. However, the Group endeavoured to ensure the smooth and stable operation of its newly built plants of the Phase 6 Project, and to achieve good material balance and well planned production and sales linking up. The Company strengthened its capabilities in deep processing of crude oil and optimized its petrochemical feedstock and product mix upon the completion and operation of the Phase 6 Project. As a result, the operating results of the Company for the first quarter recorded a profit. The Company will strive to become an advanced enterprise of refineries and petrochemicals producer as well as to continue to optimize its production and operations, to strengthen safety management, to adjust its structure, and to make the most of the advantages it derives from the operation of the Refinery Revamping and Expansion Project and the Technological Advancement Programme in order to improve profitability."

HONG KONG, October 29, 2012 /PRNewswire/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") for the nine-month period ended September 30, 2012 (the "Period").

As according to the China Accounting Standards for Business Enterprises, the Group's operating income for the Period amounted to RMB69.153 billion, representing a decrease of 6.22% over the corresponding period of the previous year. Net loss attributable to equity shareholders of the Company amounted to RMB1.609 billion (corresponding period of 2011: net profit attributable to equity shareholders of the Company of RMB1.652 billion). Basic loss per share was RMB0.224 (corresponding period of 2011: basic earnings per share of RMB0.229).

Mr. Rong Guangdao, Chairman of Shanghai Petrochemical, said, "Overall production was smooth in the first three quarters of 2012. However, the Company's overall economic returns underperformed due to factors in the international and domestic macro-economy and industry situation, as well as the domestic refined oil price not being fully and timely adjusted accordingly. Facing the challenging production and operational environment, by strengthening management, optimizing production and enhancing efficiency, the Group pushed forward the construction of the Phase 6 Project, and at the same time maintained stable production and operations, provided a steady supply of refined oil and reduced inventory levels. The industry currently shows signs of steady recovery. However, uncertainties remain in the domestic and international economic environment as well as weak demand from downstream that will pose challenges for the industry in the fourth quarter."

Shanghai Petrochemical is one of the largest petrochemical companies in China in terms of sales revenue and was one of the first Chinese companies to complete a global securities offering. The Company is located in Jinshanwei in southwest Shanghai. It is a highly integrated petrochemical enterprise that processes crude oil into a broad range of products such as synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum products.

We believe that our current cash on hand, expected cash flows from operations and available standby credit facilities from financial institutions will be sufficient to meet our working capital requirements and repay our short term debts and obligations when they become due. In addition, we will continue to optimize our fund raising strategy from short and long-term perspectives to take advantage of low interest rates by issuing corporate bonds or debts with low financing costs.

"In relation to the petrochemical operation, after the panic sell-off and sharp decrease in prices of products triggered by the financial crisis, product prices have bottomed out and re-stabilized, with prices of certain products having risen to a certain extent."

Source: PR Newswire (April 19, 2009)