On February 29, the Company held Annual Work Conference of 2024, reviewing the effectiveness of the work in 2023, analyzing the current situation, opportunities and challenges at home and abroad, clarifying the target for 2024 and deploying key tasks. All cadres and employees were motivated to make targeted efforts with focus on good implementation, uphold the “three lines”, win the “three battles” and promote the “three constructions”, continuously striving to build a world-class petrochemical enterprise with sustained competitiveness.

Zhang Xiguo, Chairman and Secretary of the Party Committee of the Company, attended the Conference and delivered a speech. Lin Xu, VP of the Company, made a keynote report. Company VPs P. Suchart and Li Ji made a special report respectively. Yang Fei, Deputy Secretary of the Party Committee, Secretary of the Commission for Discipline Inspection, and Chairman of the Labor Union of the Company, attended the Conference.

Zhang Xiguo pointed out that, in 2023, facing the severe business situation and fierce market competition, we stayed committed to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and fully studied and implemented the guiding principles of General Secretary Xi Jinping’s important instructions during his inspection to Shengli Oilfield and Sinopec Jiujiang Company. Under the correct leadership of the Party Central Committee, we implemented the resolutions of the Board of Directors and work arrangements made by Office of the President, utilized the theme education as a strong driving force, strengthened the guiding role of Party building in providing guarantees, united and led the cadres and employees to brave pressure and move forward.  With measures against risks, challenges and hardships, we advanced the HSE situation to improve amid stability. As a result, the Company was recognized as National “Green Factory” and maintained the rating of “Environmental Integrity Enterprise”. Quality and profitability measures have achieved remarkable results, and Aromatics Complex have achieved “high production with low consumption”, reaching a new high of recent years. In addition, the Company ranked first in the Sinopec system in terms of chemical segment profit, registered year-on-year increase of crude oil processing volume, strengthened energy saving and consumption reduction management of the entire plant, with the Energy Intensity Index (EII) hitting the historical low. The Company got new outcomes for procurement of crude oil, feedstock and materials, inventory management, market and sales expansion, margin improvement, digital empowerment and team building, representing hard-won achievements.

Zhang Xiguo put forward three requirements for working on tasks of this year

I. Consolidate strengths and make up for weaknesses, to continuously improve the performance of safe and environmental operation

safety management hinges on the three factors of people, objects and the system, ensuring sustained initiative of people, intrinsic integrity of objects and effective operation of the system.

Strengthening people’s sustained initiative lies in fostering strong abilities, developing good habits, and setting high standards. In terms of fostering strong abilities, the management level should strengthen leadership, execution, and correction abilities, while the execution level should enhance the abilities of operations control, risk identification, defects detection and emergency response. In terms of developing good habits, the focus is to build a strong sense of the bottom line and stay vigilant. Take the initiative in work with good foresight, become adept at identifying gaps and shortcomings, and take the initiative to solve problems. Rigidly follow the system and regulations with no compromise but with dedicated efforts. In terms of setting high standards, we should not be satisfied with just being passable but being truly proficient.   We should not only talk the talk, but also walk the talk. We should not only achieve what we mentioned, but also have them well achieved. For small issues, we should be able to consider them with big-picture term, not forgetting or ignoring small mistakes or errors. As small issues may grow into big ones, we should be able to see the wood for the trees.

For the intrinsic integrity of objects, the key is to well work on design, procurement and construction during the building period, and to well work on process operations, equipment operation, maintenance and repair in the operation link. The integrity of objects depends on the people’s selection and execution of the construction standards of facilities and equipment, as well as the identification of defects and risks of the objects.

An effective management system includes laws and regulations, institutional provisions, rules and norms, organizational structure and system processes. The effective execution of the system has a role in supervising, restraining and guiding people, and has a supporting role in the integrity of objects.

The more adequate and complete the three aspects of people, objects and systems are, the stronger and more solid the support for safety will be. At present, focus should be put on strengthening safety investment, personnel training, execution supervision and performance assessment. The intrinsic safety should be enhanced through TA. The personnel training should be strengthened with focus on training for shift team personnel, to improve their quality and competency. The contractor management should be improved, with qualification requirements clarified and competency thresholds set. The execution supervision should be promoted, with focus on strengthening adherence to regulations. The performance assessment should be consolidated, with focus on establishing an effective incentive mechanism.

II. Forge ahead against pressure to complete the annual targets and tasks

We must overcome difficulties to create business benefits. We should ensure safe and stable operation, optimize production organization, pay close attention to energy saving and consumption reduction, continue to expand the market and sales, and strictly control costs and reduce fees. We should block the “loss point” of benefits, expand the “growth point” and activate the “dormant point”. To block the “loss point”, it is necessary to ensure daily stable operation to prevent operation fluctuations. To expand the “growth point”, it is necessary to optimize production organizations, make overall maintenance arrangements, timely and accurately calculate economics, release the units production capacity, and complete the planned annual processing volume. We must pay close attention to energy saving and consumption reduction, and ensure an optimized operation of units. W we must continue to expand the market and sales, optimize the product structure, increase the added value of products, improve coordination work, and lift the constraints on product oil sales. To activate the “dormant point”, it is necessary to strengthen procurement management, make procurement cost benchmarking analysis, and continue efforts for cost reduction.

We should go all out to well complete the TA. Focusing on overall requirements of safe, environmental, high quality, stable and on-schedule completion of TA, we should make full preparations, strictly control the planning and the processes, highlight personnel management, and strengthen service guarantee, so as to ensure that we can realize the general objective of “stable shutdown, good maintenance, smooth startup, steady operation, long cycle and sound profitability”.

We should plan and act well for effective development. Those who plan well go far and those who act well succeed. We should actively strive for shareholders support, closely strengthen contact and coordination, coordinate and plan for development projects, well evaluate project investment, pay attention to planning when developing plans, strengthen communication in promoting implementation, and strongly promote in the implementation of projects to ensure early completion with good benefits, and enhance the Company’s competitiveness through effective development.

III. Ensure integration and mutual promotion to display the leading and safeguarding role of Party building

It is necessary to improve our political stance and the leading role. We should further consolidate and expand the achievements of themed education, make new progress by always learning from the past, work against benchmark and set timetable, and effectively translate the requirement of “securing sustainability of the energy industry and manufacturing industry” into concrete practices to complete the annual goals and tasks. We should carry out in-depth themed campaign of “forging ahead for innovation-based development and first-class level with the mission in mind”, uphold the ideological guidance, problem-oriented method, systematic thinking, pragmatism and enterprising and the mass line, and coordinate the promotion of production safety, operation management, TA and revamp, reform and innovation. It is necessary to promote integration with improved quality and profitability. To this end, we should continue deepening the role of Party building in guiding “Focuses and Promotes in Five Areas”, promote the integration of Party building with production and operation goals, with processes and with assessment while focusing on improving the grassroots organization. It is necessary to well lead the team with strengthened management. Leading cadres at all levels must give full play to the role as the “critical few”, effectively strengthen the construction of work style, take robust measures to manage “Three Major Disciplines”, cultivate a sound work style， keep improving the enterprising spirit and strengthen the sense of responsibility. It is necessary to improve competency and quality, give full play to the role of the Management Academies and various model worker innovation studios, deepen the project of improving the spiritual literacy of young people, and guide young employees to make contributions in their posts, with innovative outcomes and benefits achieved. It is necessary to promote the practice of “I serve the masses with concrete actions” centering around improving the “four environments”, so as to continuously enhance the sense of gain, happiness and security of employees.

Lin Xu arranged and deployed this year's key tasks from nine aspects, and proposed to resolutely defense the "three lines", win the "three battles", and promote the "three constructions".

First, we must resolutely defense the "three lines". Focus on tackling root causes and overcoming difficulties, and resolutely and solidly build a safety bottom line; focus on upgrading standards, and resolutely defense the red line of environmental protection; focus on flawless operation, and resolutely control the main line of safe and stable operation.

Second, we must win "three battles". Focus on scientific coordination and resolutely win the battle against TA; focus on improving quality and efficiency, and resolutely fight a long-lasting battle to end losses and increase profits; focus on extending the chain and strengthening the board, and resolutely launch an initiative battle of high-quality development.

Third, we must promote the "three constructions". Focus on digital intelligence empowerment and resolutely promote the construction of intelligent plant; focus on quality improvement, and resolutely promote the construction of three talent teams; focus on implementation, and resolutely strengthen the construction of work style.

P. Suchart and Li Ji gave special reports on safety and reliability, operation and personnel management, respectively.

At the meeting, OOP issued a letter of responsibility for the department's objectives to the heads of various departments.

At the meeting, Advanced Collectives and Outstanding Individuals were commended. Liu Hongxin, Wang Guofeng, Zhang Bin, Jia Ningbo, Zhang Yanan, Lin Zhenjie, Bai Jingdong, Liang Wenbing, Xu Ting, and Lan Zhihua were rewarded the title of “Outstanding Employees”. Among them, Liu Hongxin won the “Outstanding Contribution Award on HSSE”, Lin Zhenjie won the “Outstanding Contribution Award on Reliability”, and Xu Ting won the “Outstanding Contribution Award on Profitability”. Six people including Shi Shajun, Li Zhezhe, Fan Chengde, Lin Mingbin, Chen Chaopeng and Nian Jiafeng were awarded the “Outstanding Employee Nomination Award”. Zhou Yao, Yang Sen, Su Siyin, Qiu Jiahao were awarded the “Outstanding Young Employee of the Year”. Three groups including the Cross-Functional Group for Founding the National “Green Factory”, Materials Inventory Reduction Group of the Company, and the Cross-Functional Group on Fees and Taxation Reduction were awarded as “Excellent Group”; three front-line shift teams including PO BT’s PE shift 3#, Terminal BT’s shift 2#, Fitter module’s Oil Refining shift 1#, were awarded the title of “Excellent Shift Team”; Planning Module under Technology and Planning Department was awarded the title of “Excellent Business Module”.

During the meeting, the participants were divided into five groups to discuss top ten key tasks for 2024, make suggestions, put forward opinions and recommendations, and report and share the results of the discussion at the meeting respectively.

Heads of departments, BTMs, functional managers, supervisors and employee representatives attended the meeting. (Xiao Wanyuan, Zhang Lei)