On March 21, the Board of Directors held the 16^th meeting at the meeting room on the 15^th floor of the office building in Quanzhou. The meeting was presided over by Lu Dong, the Chairman of the Board, attended by directors, supervisors, Office of President, the General Manager for Production and Operation, the Project GM and representatives of shareholders; and relevant principals from Finance Department and Technical & Planning Department, etc. sat in on the deliberation of related topics.

During the meeting, the management reported the performance and financial status of the company as well as the progress of SCDP in 2013 and January – February 2014, and relevant items such as relevant capital projects, delegation of authority guideline, 2013 financial statements, engaged audit institution, etc. were reviewed and approved.

During the meeting, the directors present gave positive remarks to the highly effective work of all employees under the leadership of the management, especially the progress made on internal optimization and continuous HSE improvement against the severe external market challenges and the successful organization and completion of the Ethylene De-bottleneck Project/turnaround integrated event. The Directors present also required the management to, in the face of more severe internal and external situations at present, continuously pay close attention to the KFAs like safety, reliability, gross profit, and so on, and make efforts to solve the specific issues in sales of aviation fuel, etc., to further improve the economic benefit of the company.

Chairman Lu Dong appreciated the support of the Board of Directors on behalf of the management. The company is now mainly in the face of two challenges, said Chairman Ludong. One is safety and environmental protection; since the government is intensifying the law in safety and environmental protection, it will be our focus in the future. The other is the return on investment. Continuous loss has imposed great pressure on us. Since the beginning of this year, the company management has been advancing the management of change (MOC) and benefit improvement with safety and environmental protection as the basis and benefit as the orientation, and such activities will be the most important affairs of the year. While continuously eliminating the long-term constrains, we will also work hard to eliminate some short-term constrains. In the next phase, the management will review and evaluate the implementation of the benefit improvement action plan on monthly basis, and a benefit improving committee will be established based on MLT and FLT to promote the work under the leadership of the President. In the meantime, we would like to strengthen the cooperation with Sinopec SenMei (Fujian) Petroleum Company Ltd. to establish relevant mechanisms for market development and realize the win-win situation. The management is confident to lead all employees to work hard to completely fulfill the specified objectives and tasks of this year and further improve the competiveness of FREP under the great support of the shareholders and the Board of Directors.