Business Introduction of China Sinochem Group Company

Sinochem has been engaged in petroleum business for more than 6 years. The company's energy business consists of oil and gas exploration and development, petroleum trade, petroleum refining, warehousing and logistics, distribution and retail. Over the past ten years, the company has continuously consolidated and improved its dominant position in international oil trade, vigorously expanded its core commodities and business, promoted the upgrading of its business connotation, and accelerated its extension to the upstream and downstream of the oil industry, thus enhancing its industrial base and sustainable development capability. At present, Sinochem Group has developed into a large-scale energy enterprise with international characteristics, complete industrial chain and outstanding marketing and service capabilities.

In terms of exploration and development, in 22, Sinochem Group established Sinochem Petroleum Exploration and Development Co., Ltd., which specializes in oil and gas exploration and development. Over the years, the output and reserves of Sinochem's oil and gas exploration and development business have been expanding, the oil and gas reserves have steadily increased, the oil and gas output has increased rapidly, and the asset quality and structure have been greatly improved. By the end of 211, the company has owned 23 oil and gas contract blocks in 1 countries including Brazil, Colombia, United Arab Emirates, Yemen, Tunisia, Ecuador, Peru, Syria, Indonesia and China, basically forming a strategic development layout with the Middle East and South America as the core. The remaining recoverable oil and gas reserves in equity reached 41 million barrels (oil equivalent), and the oil and gas output in equity in 211 was 22.1 million barrels (oil equivalent). From 22 to 211, the company invested US$ 6.5 billion in the upstream oil business, and accumulated 82.59 million barrels of oil and gas (oil equivalent).

In terms of oil trade, Sinochem Group has formed a strong ability to obtain overseas oil resources by virtue of its good cooperative relations with many oil-producing governments and their national oil companies, with a crude oil output of over 3 million tons/year, involving crude oil from Saudi Arabia, Oman, Iraq, Bahrain, United Arab Emirates, Yemen, Qatar, Angola, Vietnam, Syria, Indonesia and Russia.

Sinochem Group has maintained long-term cooperation with major oil companies and related financial institutions in oil trade and risk management, and provided high-quality crude oil and professional services to domestic and foreign customers by virtue of its good reputation, operating channels and technical means, forming a stable and extensive global sales channel. While relying on long-term contracts and spot purchases of overseas crude oil to meet China's domestic market demand, the company actively re-exports to refineries in Southeast Asia, Europe and North America, vigorously expands core commodities and core businesses, and focuses on developing superior varieties. It has become an important crude oil supplier in many countries and regions, and its operating scale and benefits have increased substantially. The company exports more than one million tons of high-quality products of Dalian West Pacific Petrochemical Co., Ltd. (WEPEC) as an agent every year, and also engages in the import and self-operated business of jet fuel, naphtha, duty-free marine diesel and other light oil. At present, the company's total global crude oil and refined oil business reaches 6 million tons, and the ratio of import to re-export is about 1:1.2.

in order to cooperate with the development of oil trade, Sinochem Group has continuously consolidated its cooperation with large international shipowners, provided convenient and efficient chartering services for oil customers imported from China and re-exported from third countries, and expanded the scale of self-operated ships through various means such as time chartering tankers. At present, the number of super tankers (VLCC) leased and operated by the company has reached 9, and the professional oil transportation service capacity has been initially established.

in terms of petroleum refining, sinochem started its involvement in petroleum refining business in the late 198s, and it is the largest shareholder of China's first Sino-foreign joint venture refinery-Dalian Western Pacific Petrochemical Co., Ltd. (WEPEC). WEPEC is the first Sino-foreign joint venture refinery in China, with a crude oil processing capacity of 1 million tons/year. It is a fully hydrogenated refining enterprise that can process high-sulfur crude oil. It has 1 million tons/year atmospheric and vacuum distillation unit, 3 million tons/year heavy oil catalytic cracking unit, 2 million tons/year heavy oil hydrodesulfurization unit, 2 million tons/year diesel oil hydrogenation unit, 1.5 million tons/year hydrocracking unit and 1.5 million tons/year hydrocracking unit.

The 12 million tons/year refining project of Sinochem Quanzhou Petrochemical Co., Ltd. invested by Sinochem Group is located in Quanhui Petrochemical Industrial Park, Quanzhou City, Fujian Province, and has been listed as one of the key projects completed and put into operation during the Twelfth Five-Year Plan period by the national refining plan. At present, the construction of Quanzhou Petrochemical Project has made a breakthrough, the environmental impact assessment report has been officially approved by the Ministry of Environmental Protection, and the project approval has entered the final stage. The design products of this project mainly include gasoline, diesel oil and various petrochemical products. After the project is put into production, it will become one of the most competitive refining enterprises in the industry, and will support the development of Meizhou Bay Petrochemical Base in Fujian Province into a modern petrochemical base in China, and make positive contributions to the upgrading of the national petrochemical industry, the construction of the economic zone on the west side of the Taiwan Strait, and the economic take-off of Fujian Province and its surrounding areas.

sinochem hongrun petrochemical co., ltd., in which sinochem group is a shareholder, has a crude oil processing capacity of 5 million tons/year, and the quality of gasoline and diesel oil produced reaches the national III standard. In addition, 176 kilometers of heavy liquid chemical Huangdao-Weifang pipeline and 4 million cubic meters of large crude oil storage tank area are under construction, and have now entered the final stage.

In terms of warehousing and logistics, at present, the petrochemical warehousing capacity operated and under construction by Sinochem Group is about 25 million cubic meters, forming a petrochemical warehousing and logistics network covering the Yangtze River Delta, the Pearl River Delta and the coastal areas along the Bohai Sea, as well as supporting terminal systems of various scales ranging from 3, tons to 3, tons. The commercial petrochemical warehousing scale ranks among the top in China, and it is the largest third-party petrochemical warehousing and logistics service provider with the strongest comprehensive service capability in China. In 211, the company's warehousing transshipment volume exceeded 35 million tons.

In terms of distribution and retail, Sinochem's domestic distribution and retail network of refined oil products has made great progress in recent years, initially forming a layout covering North China, East China and South China. The company provides hardware facilities and business qualification support for distribution business by strengthening the development of refined oil distribution oil depot. The company has accelerated the development of gas stations, and the scale of the gas station network jointly developed with Total Group of France in Bohai Rim and East China has been expanding. The self-built gas station network in Fujian and Guangdong has been smoothly promoted, and at the same time, the markets in Shandong, Shanxi, Anhui and Jiangxi have been continuously expanded. At present, Sinochem Group has nearly 4 gas stations, and its brand awareness and market influence are constantly expanding. Sinochem Group is the only central enterprise that deals in three major agricultural inputs: fertilizers, seeds and pesticides. With advanced technology, high-quality products and professional services, Sinochem Group is committed to developing into the largest and world-leading integrated service provider of agricultural inputs in China, making contributions to food security and agricultural development in China and the world. Sinochem Fertilizer Holding Co., Ltd., the flagship enterprise of Sinochem Group engaged in fertilizer business, is the largest fertilizer supplier and distribution service provider in China, covering the whole industrial chain of resources, research and development, production, distribution and agrochemical services, which has played an important role in ensuring domestic fertilizer supply and promoting crop production. China Seed Group Co., Ltd., a subsidiary of Sinochem Group, is a state-level seed enterprise in China, with a leading comprehensive strength in China. It is committed to becoming the "first in China and the first in the world" seed company with "integrated breeding, propagation and promotion" and promoting the upgrading of seed industry in China. Sinochem Group is the largest chemical fertilizer enterprise in China, which integrates all kinds of fertilizers, production, supply and marketing, and maintains a leading position in pesticide research and development, production and sales, seed production and processing. Zhongzhong Group is a leading enterprise in China, which integrates scientific research, development, production and management of seeds and high-quality agricultural and sideline products. According to the main business scope of central enterprises approved by SASAC, the main business of Zhongzhong Group is: research and development, production and sales of crop seeds and seedlings; Relevant agricultural means of production and research and development, production and sales of agricultural products.

In p>27, with the approval of the State Council, Sinochem reorganized two central enterprises, Shenyang Research Institute of Chemical Industry and China Seed Group Company, which will further strengthen the overall strength of Sinochem in the field of agricultural inputs.

in terms of fertilizer business, one of the largest fertilizer producers in China, the company now holds 7 fertilizer producers with 6 shares, and its products include nitrogen fertilizer, phosphate fertilizer, compound fertilizer, potash fertilizer and new fertilizer, with an annual production capacity of over 1 million tons. These enterprises are reasonably distributed in resource areas and consumer markets, and conveniently supply fertilizer to all parts of the country. At the same time, Sinochem Fertilizer is also the most diverse and complete producer of fertilizers in China. Its products cover all kinds of macro-,medium-and trace-element fertilizers and BB fertilizers, organic-inorganic compound fertilizers, slow-release fertilizers, special fertilizers and other new fertilizers.

China's largest importer of chemical fertilizers-while strengthening its own production capacity, the company continues to strengthen its overseas sourcing capacity to ensure the supply capacity of domestic scarce resources and varieties. As the largest importer of fertilizer in China, with more than 6 years of international trade experience and strength, the company has maintained a good strategic alliance with major international fertilizer suppliers, forming a strong market position including bargaining power, market share and brand effect.

in terms of potash import, the company acts as an agent for potash products from major international potash suppliers, such as Potash Corp. of Canada, Potash Corp. of Jordan, BPC, etc., and actively participates in China's potash import negotiations, giving play to the influence of the industry, playing a constructive role in maintaining the dominant position of domestic potash in the world, making up the domestic potash resource gap and reducing the burden on farmers. In the import of phosphate fertilizer, the company has long been the sole agent for the import of diammonium phosphate from Morocco and Tunisia. In the import of compound fertilizer, it has established a long-term strategic cooperative relationship with YARA, Norway, and has been the sole agent for YARA's compound fertilizer import for more than 2 years, providing farmers with high-quality and efficient compound fertilizer products and building the first brand of imported compound fertilizer in China.

in terms of seed business, as a national seed company and the only central enterprise in China with the main business of crop seed industry, Sinochem Group has continuously improved its core competitiveness in all aspects of the industrial chain by implementing the development strategy of "emphasizing research and development, promoting production and stimulating marketing".

China Seed Group Co., Ltd., a subsidiary of Sinochem Group, has developed into a large-scale seed industry group with a complete industrial chain integrating scientific research, production, processing, marketing and technical services after more than 3 years of development, mainly engaged in the seed business of crops such as corn, rice and vegetables, and its operating scale is leading in China. The company has successively obtained the AAAc grade of Dagong International Enterprise Credit Rating and AAA grade of China Seed Association Industry Credit Rating, further establishing the industrial position and competitive advantage of seed business.

In terms of pesticide business, Sinochem Group's pesticide business covers all aspects of the industrial chain, such as product research and development, raw drug production, preparation processing and sub-packaging, product registration, brand marketing, etc., among which the development of patented pesticides occupies a leading position in China. The scale of pesticide business ranks among the top in China. In recent years, the company has accelerated its strategic expansion and continuously strengthened the industrial chain of pesticide business. After becoming the largest shareholder of Jiangshan, Sinochem International, the company's holding company, has also carried out strategic cooperation with Jiangsu Yangnong Chemical Group, and its industry influence and comprehensive strength have been further enhanced. As two national pesticide research and development platforms, Shenyang Chemical Research Institute Co., Ltd. (referred to as "Shenyang Institute") and Zhejiang Chemical Research Institute Co., Ltd. (referred to as "Zhejiang Institute") under Sinochem Group have the leading pesticide innovation capability in China and undertaken more than 2 national scientific and technological research projects. At present, eight innovative products are in the development stage. Shenyang Institute, the founder of pesticide research and development in China, has made outstanding contributions to the development of pesticide industry in China. Shenyang Institute is the supporting unit of the National Engineering Research Center for Pesticides, the National Pesticide Quality Supervision and Inspection Center and the National New Drug Safety Evaluation Center. It has the State Key Laboratory for the Creation and Development of New Pesticides, and has a perfect pesticide research and development system from chemical design and synthesis, production process development, biological activity determination and application technology development, preparation processing, safety evaluation and commercial development. At present, more than 4% of the leading pesticides produced in China are developed and popularized by Shenyang Institute, and two kinds of fungicides independently created have become the leading products in the domestic market. Shenyang Institute of Safety Evaluation Center and Pesticide Testing Laboratory have successfully passed the GLP certification of Dutch government, a member of OECD, which will play a positive role in promoting domestic pesticide chemical products to the international market.

Zhejiang Institute of Chemical Technology is the supporting unit of Zhejiang Base of National Southern Pesticide Creation Center and the largest research and development institute in Zhejiang Province, mainly engaged in the research, development and production of new fluorine-containing pesticides. Sinochem's chemical business is based on import and export trade and circulation services, and has established strong competitive advantages in the fields of fluorine chemical industry, natural rubber, chemical logistics, petrochemical raw materials, medicine and so on. Sinochem Group has developed into a leading comprehensive service provider of chemical products in China, which plays an active role in promoting scientific and technological progress and safe, environmental protection and harmonious development of the chemical industry. In recent years, Sinochem Group has actively extended its industrial chain upstream and downstream around several sub-sectors such as fluorine chemical industry, natural rubber and chemical logistics, further enhancing its market position and competitive advantage. In the field of trade and circulation with traditional advantages, such as petrochemical raw materials, we have continuously innovated business models and enriched business connotations, and the import and export share of related products has continued to maintain a leading position in China. In the field of medicine, through cooperation with world-renowned biopharmaceutical enterprises, we have improved our strength in related fields.

in fluorine chemical business, sinochem's fluorine chemical business has formed a complete industrial chain integrating resource development (fluorite and hydrofluoric acid), research and development, production and sales. The company is a leading fluorine chemical manufacturer in China and the most complete supplier of ODS substitutes. Its products cover ODS substitutes, fluoropolymers, fluorine-containing fine chemicals, etc., among which more than ten varieties such as HFC-134a rank first in the domestic and international markets. In terms of resource development, Sinochem Lantian Group Co., Ltd., a subsidiary of the company, has more than 3 million tons of fluorite raw ore reserves, ranking among the top in the same industry in China, forming a resource base to support the long-term development of fluorine chemical industry. In the field of research and development, the company provides environmentally friendly, efficient and energy-saving green products through scientific and technological innovation, creating green competitiveness and unique competitive advantages. A number of new materials research topics of the company were listed in the National 863 Plan, and the research report of the "Twelfth Five-Year Plan" of fluorine chemical industry was commissioned by the Ministry of Industry and Information Technology. At the same time, we actively promoted technical cooperation and introduction with domestic and foreign scientific research institutes, universities and international leading enterprises in fluorine chemical industry. The company successfully cooperated with Honeywell Company of the United States to develop a new international leading environmental protection product HFC-245fa, which enhanced the development potential in the field of energy-saving and environmental protection materials.

In the production process, Sinochem Group has several fluorine chemical products production bases in Taicang, Hangzhou, Xi 'an and Shangyu. The company has continuously improved its technology and formed a series of ODS substitutes with leading technology and complete varieties. The production capacity of ODS substitutes has reached 12, tons, and the production capacity of fluoropolymers and fluorine-containing fine chemicals has reached 17, tons. In addition, the company established a joint venture with Solvay Belgium to cooperate in the field of high-purity wet chemicals business, producing high-end fluorine chemical products including electronic-grade hydrofluoric acid to meet the rapid development of high-tech industries in China.

in marketing, the company implements brand strategy, and brands such as JINCOOL have formed strong influence in the industry.

in terms of rubber business, sinochem has been engaged in rubber and rubber products for nearly 6 years.