The investigation delegation led by Mr. Li Chunguang, Party member and Deputy General Manager of China Petrochemical Group (Sinopec Group) and President of China Petroleum and Chemical Corporation (Sinopec Corporation), visited FPCL and FREP for investigation and guidance and expectation for current key work on May 18^th. Heads of Sinopec Production Management Department, Development and Planning Department, Foreign Cooperation Department, Refining Department and Chemical Department and heads of FPCL and FREP including Mr. Lu Dong, Mr. Chen Xiaobo, Mr. Yang Hongbin, Mr. Liu Yanchang, Mr. Hu Hongye, Madam Li Siyang and Mr. Chen Feishan accompanied the visit.

The delegation visited FREP Exhibition Hall and the new plant site CCR to conduct field research of the production status and the process of operation units as accompanied by the Company’s leads including Mr. Lu Dong and Mr. Chen Xiaobo. The Company’s leads introduced the new plant scale, operation process and staffing to the delegation. The delegation was deeply impressed by the advanced facilities, fine management and quality talent team of the Company.

Afterwards, the delegation debriefed the Company. In the meeting, FREP Board Chairman and President Mr. Lu Dong reported on the Company’s production and business conditions, present principal contradictions and issues, target of turning loss into gain and countermeasures. He said, in the face of severe challenges of market in demand, period imbalance between supply and demand, dramatically intensified competition in the industry, continuous loss of the Company, etc., FREP focused on “Safety, Reliability, Margin, Opex, People” five KFAs priority work, started with change of mindset, identified potential opportunities from gaps, took active actions in a passive situation, mobilized whatever positive factors, took a series of measures, went all out to create benefit, spared no efforts to reduce cost and strived to reverse the loss situation.  

Lu Dong expressed that, FREP combined the Company’s “2014 Annual Business Plan” and the goal of committing to building a leading-edge integrated refining and petrochemical company in Asia, tried to truly address the paramount and most urgent task of “reversing loss and getting out of the red” by identifying gaps through benchmarking, setting goals, defining direction, strengthening execution of standards and pursuing improvement by comparison, endeavored to reverse the loss situation in the first half of the year and worked hard to achieve the plan target of annual profit at RMB 632 million Yuan.

In the meeting, departmental heads of Sinopec head office engaged in the visit explained on relevant questions.

Li Chunguang fully recognized the efforts made by FREP. He required FREP management and working levels to adapt to the changes of market and environment, keep up with the situation for development, carry forward the responsible spirit, do not lose faith and proceed with confidence when confronted with difficulties, and make a comprehensive plan for all work of the Company; keep strict in safety and environment work, ensure safe, stable, optimal and long term running of facilities, and promote profit improvement; enhance fine management, establish assessment mechanism and honor responsibilities; optimize the running of both refining and chemical sections by coordination, do a remarkable job in optimization, the eternal theme, stick to producing more high-value-added products and benefit-oriented principle and put profit increase in an important position. He hoped FREP would lay down the figure, benchmark with advanced enterprises like Zhenhai, Maoming Petrochemical, catch up with the better, arrange dedicated personnel to keep close eyes to the market and optimize various aspects including feedstock, product, backup, etc.; deal with the relationship among shareholders properly, respect, coordinate and influence shareholders, and give more play to Board Meeting. He believed for sure that FREP would raise the spirit, get over difficulties, implement measures, increase profit, strive for further improvement and make more contributions to the development of Chinese petrochemical industry.

The delegation was driven to the field for observation of the operation facilities.