On February 5, the Company held its 2026 Annual Work Conference. At the conference, we comprehensively reviewed the work achievements of 2025 and the development accomplishments during the “14th Five-Year Plan” period, scientifically outlined the development strategy, goals, and tasks for the “15th Five-Year Plan” period, and detailed the key work arrangements for 2026. We mobilized all cadres and employees to boost their morale, overcome difficulties, and strive to advance the Company’s high-quality development to a new level, ensuring a good start and solid foundation for the “15th Five-Year Plan” period, and contributing greater strength to building a world-class petrochemical Company with sustainable competitiveness.

On behalf of the Company’s Chairman and Party Committee Secretary Zhang Xiguo, Acting President Lin Xu delivered a concluding speech and presented the Company’s work report. Vice Presidents Li Ji, Haytham Zamzami, and Tan Lay Koon delivered thematic reports respectively. More than 150 participants attended the conference, including heads of departments, business team managers, supervisors of functional departments, and employee representatives. The conference was chaired by Li Ji.

At the conference, the work in 2025 and during the “14th Five-Year Plan” period was reviewed. In 2025, the Company’s management united and led all cadres and employees to overcome difficulties and work diligently, achieving significant results in various fronts: overall controllable safety and environmental risks, continuous improvement in equipment reliability, steady progress in production and operation optimization, outstanding results in energy conservation, consumption reduction, and cost cutting, strong momentum accumulated for transformation and development, continuous strengthening of internal management, and ongoing enhancement of team building. Looking back on the “14th Five-Year Plan” period, the Company maintained an overall stable safety situation, deepened its green and low-carbon development, achieved significant results in operational optimization, advanced technological innovation, steadily accelerated transformation and development, highlighted the role of talent in strengthening the enterprise, continuously improved employee welfare, and laid a solid foundation for the start of the 15th Five-Year Plan period.

At the conference, we clarified the overall development approach and objectives for the “15th Five-Year Plan” period, anchoring the strategic positioning of “to be a world-class petrochemical company with sustainable competitiveness.”We focused on the main theme of “consolidating foundations, perfecting management, optimizing incremental growth, and mitigating risks,” with the aim of enhancing core competitiveness. Key priorities included operating in compliance with laws and regulations, improving safety, environmental protection, and health standards, and enhancing profitability. Efforts have been made to implement compliance projects such as the revamp and upgrading of old units to address weaknesses in safety and environmental protection. Being Market-oriented and benchmarking against international best practices, the Company strives to achieve sustained profitability in non-TA years during the “15th Five-Year Plan” period. It will further implement the “liquids-to-chemicals conversion” and green, low-carbon transformation strategies, simultaneously enhancing the competitiveness of both chemical and refining capacities, striving to achieve world-class leading levels in all economic and technical indicators by the end of the “15th Five-Year Plan” period.

Lin Xu emphasized that 2026 marks the beginning of the “15th Five-Year Plan” period, and a strong start will shape the future trajectory. Making this year's work a success carries significant responsibility and far-reaching implications. Based on the Company’s actual development situation, he put forward two core requirements: first, to strengthen the foundation and adhere to red lines, tackling the tough battle of safety and environmental protection with a highly responsible attitude. This involves prioritizing strictness to tighten the "chain of responsibility" in safety management; reinforcing the foundation to make the "protective net" of risk prevention and control more meticulous; and empowering with green initiatives to make the foundation of sustainable development more solid and visible. Second, to enhance profitability and increase momentum, winning the battle for improving profitability with a determined and decisive approach. To this end, we need to take the initiative in market expansion to achieve new breakthroughs in improving marketing quality; make preemptive moves in operational optimization to unlock new potential; strengthen the fundamentals of cost control to enhance competitive advantages; and activate the original power of innovation-driven growth to accumulate new momentum for sustainable development.

At the conference, Lin Xu delivered a work report titled Build Solid Foundation with Strengthened Internal Management, Improved Quality and Profitability to Open a New Chapter for High Quality Development of FREP in the 15th Five-year Plan Period.

Focusing on the Company's 2026 work objectives, Lin Xu further outlined seven key tasks: first, strengthen safety, environmental protection, and risk prevention; second, enhance equipment management and stable operations; third, optimize operations to increase efficiency and output; fourth, reduce costs and improve core competitiveness; fifth, advance key projects and transformation and upgrading; sixth, strengthen internal management and ensure effective system operation; seventh, build up the workforce and talent support.

Lin Xu emphasized that all cadres and employees must earnestly implement the overall requirements of "maintaining the bottom line, stabilizing production, expanding operations, reducing costs, improving quality and profitability, strengthening management, and promoting development." With unwavering conviction, a sense of urgency that drives us to seize every moment, tenacious perseverance, and a hardworking and pragmatic style, we should coordinate and advance all tasks, follow through with the master plan, and ensure a victorious start to the 15th Five-Year Plan.

At the meeting, Vice Presidents Li Ji, Haytham Zamzami, and Tan Lay Koon delivered special reports on quality and profitability improvement and development planning, operations and personnel management, and safety and reliability, respectively, further detailing and implementing the annual key tasks.

At the conference, the Company commended the advanced collectives and outstanding individuals for the 2025 "OOP Award." The following 10 individuals were awarded as "Outstanding Individuals": Qiu Jibin, He Yong'an, He Xiaobin, Shan Longbo, Xiao Lin, Zhao Kui, Lin Yimin, Chen Qiang, Wang Fasheng, and Li Yuhang. Six individuals, namely He Ligang, Wu Weizhong, Zhuang Weimin, Guo Wei, Qiu Lanfang, and Wang Chuanhai, received the "Outstanding Employee Nomination Award." Three cross-functional teams were recognized as "Outstanding Cross-functional Teams": the Cross-functional Team for Cost Reduction, the Cross-functional Team for Crude Oil/Feedstock Procurement Optimization and Cost Reduction, and the Cross-functional Team for Margin Improvement. Four teams were honored as "Outstanding Shift Teams": Alkylation Shift Team No.4, Fuels-2 BT, SC Shift Team No.4, Olefin BT, Shift Team No.3, Product Quality Center, and Fitter Fuels-2/Aromatics Shift Team, Mechanical Department. Production Operation Group, Process Department was awarded as the "Outstanding Business Group." Five individuals, Jiang Yuqing, Shi Xinlong, Chen Linruyu, Chen Huanshan, and Ding Siyu, were named "Annual Outstanding Young Employees."

To ensure responsibilities are fulfilled and foster synergy for progress, an issuance ceremony for liability statement on objectives was held during the conference. The Company's OOP presented the annual liability statements on objectives to the general managers of each department, clarifying the annual work objectives.

The blueprint has been drawn, and the time for striving is now. In the new year, guided by this work conference, all cadres and employees of the Company will anchor the development goals of the "15th Five-Year Plan," shoulder responsibilities through practical action, tackle challenges with innovative breakthroughs, unite with determination, strive for excellence, and work diligently to achieve a strong start and solid foundation for the Company's high-quality development. They will continue to strive tirelessly to build a world-class petrochemical Company and write a new chapter in the enterprise's development! (By Xiao Wanyuan and Zhang Lei)