SSC Held the 19th Session of the 8th Meeting of the Board

On August 29th, SSC held the 19th Session of the 8th Meeting of the Board Meeting in Beijing. The meeting considered and passed the 2017 interim report with the abstract, solutions on changing the chief financial officer, interim financial report and special reports for interim collected funds, etc.

Jiao Fangzheng who is a member of the Party Committee of China Petrochemical Corporation, Vice President of Sinopec Group and chairman of SSC chaired the meeting; Sun Qingde, Zhou Shiliang and Li Lianwu who are directors, and Jiang Bo who is independent director were present at the meeting. Some members of the Supervision Committee and senior management attended the meeting.

Jiao Fangzheng spoke in the meeting that SSC had seized the opportunities when international oil prices grew and oil companies increased upstream E&P CAPEX in the first half of 2017. It made joint efforts to extend markets and deepen reforms, smoothing the way for stable development of production and operation. Then it reversed the 3 consecutive years decline. In the first half, workloads of main business has vigorously grown by 18.2%-54.2%, compared to the same period last year. Its revenue is 19.84 billion yuan with YoY increase of 6.2%, and the net loss is 2.29 billion yuan with YoY reduction of 2.22 billion yuan.

Jiao Fangzheng emphasized that low oil prices would be a new normal in the future. Under such severe conditions, SSC channeled all the efforts to extend the market and increase profits, regarding the market extension as a vital program that needed to be moved forward with all the efforts. The work of deepening reforms and tackling problems has continued. SSC accelerated structure adjustment, the 3 identification work that is related to identify a staff’s qualification for the position, and enhanced the main business. It focused on profitable management of projects and strengthened monitoring of the entire process including project execution, funds returning, contracts closing and projects assessment to form a long-term project management mechanism of “No allowed losses, No losses that can be made, No one daring to make losses”. Focus also has been put on optimizing corporate resources and mechanism innovation. It played the role of multiple segments and integration and that of coordinating crews, staff, equipment, funds and markets. It made reforms and moved forward the coordination between salaries and work performance assessment to encourage all staff to make profits and an excellent performance on reversing losses. Currently, it needs to work on private issuance, releasing information in strict accordance with regulations and kindly communicate with investors.

Meanwhile on the same day, SSC held the 8th Meeting of the Supervision Committee in Beijing. Li Wei who is the chair of the Supervision Committee moderated the meeting. Zou Huiping and Du Jiangbo who are supervisors and Zhang Hongshan who is employee supervisor were present. The meeting considered and passed SSC interim report and interim report for 2017. (Shen Zehong)

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