In 2016, global economic recovery remained weak, domestic economic growth slowed down, international oil prices continued to swing at low levels and the market witnessed fierce competition. In light of severe and complex operating environment, and guided by the decision and deployment of the Central Committee of Communist Party of China (CCCPC) and the State Council, we achieved stable progress based on the five development strategies of value-oriented growth, innovation-driven development, integrated resource allocation, open cooperation, and green, low-carbon development. With focus on ensuring growth and profitability, transforming the growth pattern, structural adjustment and strengthening the Party building,we recorded new achievements that represented an exceptional start to our 13th Five-year Plan.
In this year, we delivered full-year target by expanding market,optimizing operations, reducing cost, improving risk management, squeezing expenditure and generating new sources of income. We pressed ahead with structural adjustment across the whole Group. We discovered Shunbei oil and gas field in the west of Tarim basin, Xinjiang, achieved further breakthrough in shale gas exploration in Chongqing; and put into operation Fuling shale gas project, the pressure boosting project of Sichuan-to-East China gas pipeline, and Wen-23 gas storage site. The Guangdong Zhongke integrated project in Maoming-Zhanjiang area was kicked off, marking a substantial step to build a series of new petrochemical complex bases nationwide. The fuel upgrading project targeting GB-V standard was completed ahead of schedule. The proportion of high-value- added chemicals, including synthetic resin, synthetic rubber and synthetic fiber, increased and replaced imported chemicals. We made massive progress in developing “the Belt and Road Initiative”, putting into production YASREF JV Refinery in Saudi Arabia, providing technical and engineering services worldwide against the headwind in sluggish market and fierce competition, and promoting new business model and new energy development such as e-commerce platform, non-fuel business and geothermal energy. We saw new achievement in scientific and technological innovation and digital transformation in the manufacturing sector. We forged ahead with the deepening reform, promoting mixed ownership in fuel retailing segment and introducing investors into Sichuan-to-East China Gas Pipeline project. Gulei Petrochemical Company, a joint venture enterprise of the Mainland and Taiwan was established. The pilot project for scientific and technological system reform was launched. We promoted a series of reforms, including corporate profit improvement, divesting non-core business and passing over the social functions to the local community and government. We took holistic approach to strengthened the “three bases”work (i.e. grassroots construction, groundwork and basic training), carried forward the legacy built upon in petroleum and chemical business industry, and rigorously strengthened institutional management and risk control, thus achieving even better result in excellent, earnest and strict management.
We uphold people-oriented development philosophy in green and low carbon development. The trouble-shooting project in addressing the hazards in oil and gas pipeline was completed one year in advance. “Energy Efficiency Doubling” plan was carried out in deeper dimension and “Clear Water and Blue Sky” was completed in round success. The people’s well-being projects, such as comprehensive improvement in old community and renovation of shantytowns, were carried out in stepwise manner. We made continued efforts to organize Public Open Day for social public and local community and carry out Lifeline Express campaign to cure cataract patients in poverty-stricken areas. We promoted poverty alleviation project by supporting the regional economic sector and residential households. All of these endeavors make Sinopec a recognized corporate citizen in the public.
Our achievements in 2016 were not won easily. They would not have been possible without the support from all circles of the society, the high degree of trust from our customers and cooperation from our domestic and international partners. On behalf of the Board of Directors of Sinopec Group, I would like to extend my sincere gratitude to you for the care, support and assistance.
2017 is a year full of challenges and opportunities. We aim to focus on quality and profitability improvement and upgrading, implement our five development strategies in supply-side structural reform, emphasize cost reduction, market expansion, structural adjustment, deepening reform and capacity building, and strive for new breakthroughs in structural adjustment and transformation of growth pattern. We are committed to make positive contributions to boost real economy.
By insisting on international cooperation, we look forward to working with you together for a better future!