An outstanding performance was achieved. We produced 12.49 million tonnes of ethylene, increased by 8.5%, hitting a new record. PX production was 5.04 million tonnes, up by 5.8%, synthetic resin 17.55 million tonnes, increased by 8.0%, synthetic rubber 1.36 million tonnes, up by 15.6%, feedstock for synthetic fiber 7.02 million tonnes, increased by 9.7%, synthetic fiber and polymer, 4.57 million tonnes, up by 3.2% , fine chemicals 620,000 tonnes, up by 5.7%. We increased 254,000 tonnes of production for three major synthetic materials to substitute imported volume.

Production and marketing were drawn even closer.We established a working mechanism of "one enterprise, one system" to promote the linkage among production, marketing, research and application. We set up 128 MPRC teams to integrate production, marketing, research and customers application throughout the year. For the three high value-added major synthetic materials and new products, we increased our revenue by 3.6 billion yuan. Special efforts were made to promote synthetic resin packaging materials and factory facilities, 17 FFS film packaging lines were transformed, and product image were improved. We added 2 tonne-packaging lines and 2 container bulk lines, making products leave factories in a more flexible way. Our 5 subsidiaries completed the upgrading of intelligent factory system. We applied 289,000 shared pallets in our subsidiaries, of which 31,000 were replaced by wooden pallets. We applied packaging QR code for our products innovatively, which improved customer experience and brand image.

Continuous promotion of structural adjustment.We dynamically optimized the raw material structure and timely tracked the market changes. The annual yield of "ethylene" products reached 66.45%, increased by 0.46 percentage point, a new record. The company optimized the product structure, with the production proportion of new synthetic resin products and specialty materials of 65.3%, up by 1 percentage point in the whole year. For synthetic rubber, the proportion of high value-added products was 29.1%, increased 2.8 percentage points. We increased the proportion of high value-added synthetic fiber products to 31.65%, up by 1.7 percentage points year on year. For fine chemicals, the proportion of high-end products reached 28%, an annual increase of 1.3 percentage points. The company optimized the unit structure, reasonably arranged the start-up and shutdown of MTO and ethylene glycol units, increasing an annual profit of 340 million yuan. We also optimized the operation of the unit, effectively reduced the benzene output, and stabilized the price of benzene products. We optimized the regional resources, sending Zhongyuan C8 materials to Yanshan for processing, transferring Tianjin’s roughly-cracked gasoline to SSTPC for further treatment, improving the utilization rate of styrene extraction unit. The company opened up the outsourcing transportation process of Fujian mixed xylene, and expanded the source of aromatics raw materials. We optimized the asset structure, formulated plans for asset activation and efficiency creation, implemented targeted measures, and improved the asset quality. SVW exited some backward vinylon production capacity as planned, and cleaned and sealed 14 old production lines. The incremental volume was optimized, and a number of projects were completed and put into operation, such as Zhongan United, Hainan Aromatics II, BASF-YPC propionic acid capacity expansion, Sinopec-SK styrene extraction, Yizheng 60,000 tpa PBT, and Baling slurry-bed anthraquinone-processing hydrogen peroxide industrial demonstration.

Investment for coal chemical witnessed an orderly promotion.The production and operation of Sinopec Ningxia Energy Chemical Co., Ltd. continued to improve, with a production volume of 1.738 million tonnes, up by 23.95%. Zhongtianhechuang Energy Co., Ltd. maintained high utilization and stable operation, producing 18.563 million tonnes of coal, 4.234 million tonnes of methanol and 1.375 million tonnes of polyolefin, up by 47.9%, 6.22% and 8.24% respectively. Zhongan United Coal Gasification Co., Ltd. achieved a safe one-shot start-up success, activated the whole process, and successfully marched into trial production. Preliminary work was accelerated for Guizhou Energy Chemical Co., Ltd.’s coal to olefin project, and the supporting thermal power project was approved, and the overall commencement conditions were gradually implemented. The planning and layout of coal chemical industry base in Erdos Dalu Industrial Park were steadily promoted.