SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED

Sinopec Shanghai Petrochemical Company Limited (SPC), located in Jinshan District of Shanghai, is one of the largest refining-chemical integrated petrochemical companies in China. It is one of the subsidiaries of China Petroleum & Chemical Corporation (Sinopec Corp.). It is also currently one of the most important domestic producers of refined oil products, intermediate petrochemicals, synthetic resins and synthetic fibers. SPC grew out of Shanghai Petrochemical Complex which was founded in 1972. In 1993, as an experimental unit, by standardized state-owned enterprise restructuring, SPC became the first Chinese listed company with its shares listed on Shanghai Stock Exchange, the Stock Exchange of Hong Kong and New York Stock Exchange with a total share number of 7.2 billion, including 4.0 billion non-floating A shares held by Sinopec Corp., accounting for 55.56% of the total shares; 150 million non-floating legal person A shares, accounting for 2.08% of the total shares; 720 million domestic ordinary A shares, accounting for 10% of the total shares; 2.33 billion oversea H shares, accounting for 32.36% of the total shares. In the course of development, SPC has experienced five phases of large scale concentrated construction. By the end of 2010, the Company has possessed a primary crude oil processing capacity of 14,000,000 T/Y, an ethylene production capacity of 845,000 T/Y, an organic chemicals production capacity of 4,290,000 T/Y, a synthetic resins production capacity of 970,000 T/Y, a synthetic fiber feedstock production capacity of 1,140,000 T/Y, a synthetic fiber polymers production capacity of 590,000 T/Y and synthetic fibers production capacity of 340,000 T/Y. SPC also has its own utilities system, environmental protection system, as well as load and unload handling and transportation facilities for marine and inland waterway, railway and expressway. The Company’s main products fall into four catalogues: refined oil products such as gasoline, diesel, jet fuel, LPG etc., petrochemicals such as ethylene, propylene, butadiene, benzene, toluene, paraxylene, PTA, acrylonitrile, ethylene glycol, ethylene oxide, vinyl acetate and C5 fractions etc., synthetic resins and synthetic fiber polymers such as polyethylene, polypropylene, polyester, polyvinyl alcohol etc., synthetic fibers such as acrylic staple, acrylic top, polyester staple, polyester industry yarn etc. In 2010, SPC processed 10,520,700 tons of crude oil, and produced 932,400 tons of gasoline, 3,675,900 tons of diesel, 765,700 tons of jet fuel, 972,900 tons of ethylene, 523,200 tons of propylene, 1,133,700 tons of synthetic resins and copolymers, 950,100 tons of synthetic fiber monomers, 643,200 tons of synthetic fiber polymers, 253,600 tons of synthetic fibers, and generated in total 2,961,000,000 kwh electricity. Now, the Company is conforming to Sinopec’s overall development strategy and industrial distribution tactic as well as SPC’s development strategy of giving consideration to both cost leadership and differentiation and paying equal attention to scale and refinement, lay particular emphasis on being cost and scale effective at up stream and high value-added and highly refined at down stream thus giving full play to the advantages of its wide product chain, product diversification and proximity to the markets and improving the competitiveness of the Company. SPC always pays attention to building up a good image of the Company, actively fulfill its social responsibilities, and has been making unremitting efforts to rejuvenate China's petrochemical industry. SPC is consistently persisting in the standardized business practice and trying hard to achieve satisfactory operation results to repay its shareholders and providing customers with quality products and good service. As a result, SPC has been awarded many prizes by various circles. In 2001 and 2002, the Company won the title of ‘Company which abides by contract and values credit’ issued by State Industry and Commerce Administration Bureau. In 2004, the Company was awarded the China’s Foreign Economic and Trade Enterprise with AAA grade in credit issued by State Commerce Ministry, and the National Consumer Satisfied Enterprise issued by China Quality Management Association. In 2005, the Company was awarded the honorary title of National Model Unit. In 2006, the Company was awarded the State Occupational Hygiene Model Enterprise. In 2008, the Company was again awarded the Consumer Satisfied Enterprise and the National Advanced Unit of Implementing Consumer Satisfaction Campaign issued by China Quality Management Association. In 2009, the Company was ranked the 40th among the Top 500 Chinese Listed Companies by Fortune. In 2010, the Company was awarded the title of ‘Chinese Environmentally Friendly Enterprise’ by All-China Environment Federation.