Total processing volume grew continuously. The company seized the favorable opportunity to create efficiency, actively overcame the structural contradiction between centralized maintenance and quarterly supply & demand of the refined oil products, optimized the allocation of domestic and foreign markets, gave full play to the advantage of the integrated refining and marketing industry chain, actively supported sales to expand the market, fully guaranteed the supply of chemical raw materials, and achieved a substantial increase in the total refining and processing volume. The annual crude processing volume was 250 million tonnes, increased by 4.44 million tonnes year on year, up by 1.8%. The output of refined oil products was 160 million tonnes, up by 3.4%. The export volume of refined oil products reached 26.5 million tonnes, up by 18%.

The product slate was optimized and efficiency was increased. We strengthened the linkage between production and marketing, paid close attention to the trend of domestic consumption for refined oil products, timely seized the opportunity in markets, optimized and adjusted the production ratio between diesel and gasoline, increased the supply of gasoline and jet fuel, promoted the production of light chemical fuels, and ensured the demand for chemical raw materials. The output of light chemical yield increased by 3.1%, and the self-supply rate of chemical feedstock reached 94.3%. In 2019, our gasoline production increased by 2.6% and jet fuel production was up by 7.8%. In 2019, the optimization of product structure realized a revenue increase of 1.63 billion yuan.

Quality and efficiency steadily improved. We made solid progress in structural adjustment and enhanced the overall competitiveness of the industrial chain. Mid-term turnover was realized in the Zhongke Refining and Chemical Integration Refining Project. Zhenhai boiling-bed hydrogenation and Luoyang catalytic capacity expansion projects were put into operation, and a batch of alkylation units such as Jiujiang were completed and put into operation. Jingmen 550,000 tpa lubricant hydrogenation unit was put into operation, and the production of special products got prepared. We sped up the construction of export-supporting facilities for refined oil products and completed the construction for export capacity in advance. The company seized the market opportunity and completed the construction for production capacity of low sulfur heavy bunker fuel.