Accelerate The Development, Realize The Reconstruction

As the internal and external environment changed, since 2003, Sinochem has been focusing on five key businesses–energy, agriculture, chemical, finance and real estate, actively promoting strategic development and accelerating business transformation, to start its construction of a great and respectable company with global influence. Thus, the company walked into a period of rapid development.

On Nov. 10th, 2003, the company was renaamed "Sinochem Group", to adapt to the change of business connation after the strategic transformation.

For energy business, Sinochem had successfully entered into the area of oil & gas exploration and development, setting up a complete industry chain from exploration, development, refining to distribution and retail where emphases were put on increasing the crude oil resources and strengthening the distributing capability. As a result, Sinochem consolidated its position as the fourth biggest oil company of China. For agricultural business, the company speeded up the development of terminal sale network for fertilizer and enhanced its ability to obtain upstream fertilizer resources, forming an integrated industrial network covering resource control, R&D, production, marketing and agricultural services. The network strengthened Sinochem’s leadership in China’s fertilizer market and helped Sinochem develop into an important force to ensure the supply for domestic fertilizer market and stabilize the fertilizer price. Furthermore, Sinofert, a subsidiary of Sinochem, successfully went public and other two subsidiaries - Shenyang Research Institute of Chemical Industry and China National Seed Group Co., Ltd. (CNSGC) were restructured, which enhanced its business strength in agricultural inputs. For chemical business, Sinochem had taken a significant amount of market share in such sectors as fluorine chemicals, rubbers, chemical logistics and pharmaceuticals and became a major provider of a wide range of chemical products in China. Sinochem had also achieved great progress in real estate and finance. In 2007, Franshion Properties Limited, the flagship enterprise in Sinochem’s real estate business, was successfully listed in Hong Kong.

Sinochem has been enjoying remarkable progress . The five years saw Sinochem’s gross profit grow from RMB 1 billion to 2 billion, to 4 billion and to 8 billion finally. In 2007, its operating performance achieved “four milestone”: its sales revenue exceeding RMB 200 billion; gross profit exceeding RMB 8 billion; its total assets exceeding RMB 100 billion; its net assets exceeding RMB 40 billion. In 2008, Sinochem’s operating revenue and gross profit ranked, respectively, the 5th and 16th among central state-owned enterprises. As from 2003, Sinochem’s scale of operation and profit stands among the top of China’s major commence and trading enterprises. Since the first operation performance assessment carried out by the State-owned Assets Supervision and Administration Commission (SASAC) for central state-owned enterprises, Sinochem has been receiving “grade-A” for five consecutive years. In 2007, Sinochem was among the first group of central state-owned enterprises to be awarded “Best Performance Enterprise”; in the same year, Sinochem was entitled “Model State-owned Enterprise in China” by the Propaganda Department of the CPC Central Committee and SASAC.