On February 17, the company held the annual work conference of 2022, which summarized and reviewed the work of 2021, analyzed the current internal and external situation and challenges, comprehensively deployed the targets and tasks of 2022, reached a consensus on the next step and the key tasks, encouraged all cadres and employees to align mindset, set clear targets, boost confidence, work hard and fully complete annual targets and tasks. In the company's new journey of all-round and high-quality development in the new era, make new contributions and achieve better performance to welcome the 20^th National Congress of the Communist Party of China.

The company management Liu Xiangdong, Saleh Yahya Al Zaid, Lin Xu, Zhao Tianxing, Neo Ee Ee and Yang Fei attended the meeting, and vice president Zhao Tianxing chaired the meeting. General managers and deputy general managers of all departments, managers of all Business Teams and employee representatives of the company attended the meeting.

Liu Xiangdong, acting chairman of the company and deputy secretary of the company Party Committee, fully affirmed the work achievements of the past year at the meeting. He commented that under the leadership of the Party Committee and Board of Directors in 2021, with a strong driving force of celebrating the 100^th anniversary of the founding of the Communist Party of China, all cadres and employees of the company overcame difficulties and challenges such as the sudden outbreak of COVID-19 in Fujian province and the highly volatile international oil prices, achieved good business results, made net profit of 1.803 billion RMB, completed the targets and tasks set by Board and realized a good start of the 14^th Five-Year Plan.

Liu Xiangdong commented that in 2022, we would welcome the 20^th National Congress of the CPC and the 15^th anniversary of the joint venture. In the new year, we would face many difficulties and challenges. With the impact of the epidemic unseen in a century, centennial changes in the world community were accelerated, and the external environment became more complex and severe. China's economy was facing triple pressures, i.e., shrinking demand, oversupply impact, and weakening market expectations. There was a downward pressure on domestic economy. The standards of “carbon peaking and carbon neutrality” and “energy consumption and energy intensity” were strictly implemented in the industry. The high-end technological innovation formed market pressure. The general situation that the crude oil demand increase rate was lower than supply growth remained unchanged. There was a risk of continuous high volatility of international oil prices. Domestic new refining and chemical capacity was released continuously. The development of new energy industry was accelerated. Market competition gradually became severer. The governmental management of green and low-carbon development would be strict and severe in a long term. At present, we were facing severe business situation. The severer the situation was, the more confident we should be. With perseverance and tenacity, we should firmly establish the determination and courage to "strive for the best". As long as we adhere to the keynote of making progress stably, focus on increasing profit, adhere to market-oriented policies and market-oriented management mechanism, firmly implement the low-inventory strategy, and continuously improve quality and profitability, we would turn negative situations into positive ones, turn disadvantages into advantages and complete the annual targets and tasks completely.

Liu Xiangdong required that the company should focus on three aspects in 2022. First, work hard to ensure safety and environmental protection, firmly hold the bottom line of "no incident", strictly and precisely implement various safety measures, and advance production and operation towards intrinsic safety and environmental protection. Second, make continuous efforts on optimizing operation of production. Coordinate and optimize internal and external resources, keep high-rate operation of chemical units, realize long-period and stable operation, ensure safety and increase profitability through stable production. Third, continuously carry out the in-depth action of improving quality and profitability, adhere to the working policy of "optimizing feed supply to olefins and aromatics", further improve product slate, closely coordinate production and marketing, reduce costs and ensure the profit target can be fulfilled.

Liu Xiangdong stressed that we should highlight the guidance of Party building. Party branches at all levels should focus on the center and serve the overall interests, carry out the theme practical activity of "keeping the entrustment firmly in mind, making new achievements and realizing better performance to welcome the 20^th National Congress of the CPC", promote the integration and mutual promotion of Party building and production and operation, lead all Party members to work hard on the front line, bravely undertake responsibilities and set examples in safety, environmental protection, optimal operation and continuously improving quality and profitability, effectively transform the Party's political and organizational advantages into a powerful force to overcome difficulties, let the Party flag fly high in the front line of the action of "continuously improving quality and profitability", encourage all cadres and employees to make new contributions and achievements in the new journey of all-round and high-quality development of the company in the new era, and welcome the 20^th National Congress of the CPC with outstanding achievements!

President Saleh Yahya Al Zaid made a work report titled "Building on the Positive Momentum to Overcome Difficulties, and Striving for Accomplishment of 2022 Targets & Tasks". He summarized the company's performance in 2021, analyzed the highlights, problems and gaps in 2021, and profoundly analyzed the business environment faced by the company. With the upgrading of consumer consumption structure, and new fields/ forms of business will boost the consumption of the new type of petrochemical products. This will bring different comparative advantages to domestic petrochemical industry. With increasing refining capacity, tightening export quota of product oil, declining diesel consumption and expedited peaking of mogas consumption, the oversupply in domestic product oil market is getting more severe. Chemical demand growth is lower than the supply growth, with chemical margin in a downward trend. New capacity of the large-scale refining/ chemical plants in surrounding areas will create direct competition to FREP business.

Saleh Yahya Al Zaid stressed that in the next few years, the company would be in a more competitive business environment, therefore, we must achieve operational excellence in HSSE and reliability, further promote the structural improvement of cost efficiency of all businesses, and firmly seize opportunities to increase margin of all businesses.

In his report, Saleh Yahya Al Zaid deployed the targets and key actions for 2022. He stressed that we should continuously improving quality and profitability, ensuring flawless operation, focusing on energy saving and carbon reduction, improving management level, paying attention to sustainable development and building a healthy lifestyle culture. All employees were expected to work hard in a down-to-earth manner and lay a solid foundation for the all-round and high-quality development of the company.

Vice President Lin Xu and Vice President Neo Ee Ee delivered special reports on Improving Quality and Profitability, and Safety and Reliability respectively.

At the meeting, the targets/ responsibility commitment letters of departments were issued, and the outstanding groups/ individuals were commended.

The Charge Gas Compressor Turbine Power Decline Research Team, the Cross Functional Coordination Group for COVID-19 Prevention and Control, and the Cross Functional Coordination Group for Chemical Feedstock Optimization were awarded as the “Outstanding Group”. The Shift Team #2 of Olefin Business Team, the Shift Team #4 of Aromatics Business Team and the Experimental Team of Electrical Maintenance Group were awarded as the "Outstanding Team". The Chemical and Additives Procurement Team of Supply &Distribution Department was awarded as the "Outstanding Functional Group". 10 employees including Zhang Aixin, Xu Yiru, Liu Liangzong, Liu Longjian, Zhang Qingyu, Ai Shuchang, Lin Zhonghai, Huang Chaofeng, Guo Jinfeng, Xue Wen, were awarded as the "Outstanding Individual". Xu Yiru won the "Outstanding Contribution Award of HSSE", Zhang Qingyu won the " Outstanding Contribution Award of Reliability ", and Lin Zhonghai won the " Outstanding Contribution Award of Profit". Six employees including Qian Cheng, Zhan Zhixin, Yang Hongwei, Cao Yan, Gui Ping and Chen Ping were awarded as the "Outstanding Individual Nominee Award". The outstanding individuals of 2021 Turnaround/ Revamp were also commended at the meeting.

During the meeting, the participants had breakout discussions in five groups, and put forward opinions and recommendations on the top 10 tasks of 2022, and then reported the discussion results to the meeting. (Xiao Wanyuan, Zhang Lei)