At present, our Company is confronted with a tough market situation. Under this circumstance, the key to achieve task of turning loss into gain and five year plan of building a leading-edge integrated refining and petrochemical company in Asia is to gather strength and pool wisdom of the whole organization. Mentality and work style of the staff, so to speak, is currently an important safeguard to improve our management and profit, and also a feature of the company in building a leading-edge company in Asia and a beautiful home. To this end, we should build up confidence, bravely shoulder responsibilities, unite together as one team and spare no effort to fight against difficulties.

First, we need high aspiration to form a healthy environment of daring to take responsibilities and fight against difficulties. Responsibility, on one hand, derives from sense of responsibility and enterprising spirit of every member of the organization; on the other hand, from accountability system. Effective assessment will further motivate sense of responsibility and enterprising spirit of us. So the Company management is now researching and improving the individual performance assessment and incentive mechanism. The Company is pleased to see employees’ high spirit and engagement in improvement of management and profit at present. Indeed, everyone is a part of big family of FREP, and thus is obliged to jointly build our common home. As a part of it, we ought to present our gut to forge ahead, go all out and shoulder responsibilities. We should fulfill our due roles and responsibilities in a down-to-earth manner. We should identify gaps, seek for improvement approaches and make progress all round. We encourage everyone to reform, innovate and become courageous in work. We will back you up to improve and upgrade the Company’s performance by sufficient downward delegation, incentive reward and carrying out activities like “Innovation Day”.

Second, we need lofty goals to form a positive atmosphere of striving to make a difference and fighting for Number One. This is the precondition for us to commit to the vision of building a world class petrochemical company with sustainable competiveness. We should not be satisfied with status quo when we worked on SCDP or TA/R project; instead, we should plan with high starting point and construct with high standards. We should not be satisfied with just considering one matter exclusively and finishing the tasks; instead, we should plan comprehensively from long term perspective with foresight and attach importance to execution and substantial effect. In face of increasingly fierce market competition, we should work extremely hard to make up for our shortfall and run extremely fast to catch up with other advanced enterprises. When we put into practice, we should continuously push forward “Five KFAs”, further improve leadership competency and enforcement and create more benefits as starting point and objective for all work. We should capture the key and bottleneck that constrain improvement of management and profit, have a definite target in view and exert ourselves to make overall breakthrough in a dot-and-dash way. The Company management will also identify gaps, solve problems, provide supports, honor responsibilities and give a vigorous boost by means of regular work meetings, management and profit improvement steering committee, MLT/FLT regular meetings and accountability system.

Third, we need close teamwork to form a sound situation of the whole organization at all levels making contributions and focusing on implementation. We have initially achieved targets of making the best of limited resources, accelerating organization downsizing and efficiency improvement by introduction of “Cross-functional Collaboration” concept and implementation of new Business Team management system. It’s hoped we take this as a platform to live up to seamless connection and efficient progress. Only with adequate communication and collaboration can we jointly work out core task of turning loss into gain. Here we underline relationship between division of work and cooperation. Each performing its own functions is the greatest support to the whole and the best cooperation for work. The cross-functional collaboration we talk about is a type of cooperation developed on sufficient downward delegation and clear lines of roles and responsibilities. No department, nor employee, can take the need of support as an excuse for shifting due responsibilities. On one hand, we should refine and concretize objectives, roles and responsibilities based on specific circumstance of each department and each post, so as to prevent shifting of responsibilities and achieve integration of roles and responsibilities and assume one’s own rights and obligations. On the other hand, we should promote sense of responsibility, the quantity of responsibility and competence of assuming responsibility, so as to take grave mission bravely, not to shift responsibilities in face of conflicts but take initiatives to rise to difficulties.

In response to severe market challenge and corporate crisis of profitability, everyone should well steward all controllable factors in the business process; the whole organization at all levels should further intensify sense of responsibility, improve competence of shouldering responsibility, put spirit of responsibility into real practice, melt it into practice of building a beautiful home, and gather wisdom and strength and make up mind of every member of the Team to win over battle of turning loss into gain.