This year, in spite of turbulence in international crude oil price, continued depression of market demand, overcapacity of refining/ chemicals industry, decline in both price and sales of petroleum and chemical products, and lower profitability than expected, FREP showed great solidarity facing these enormous difficulties and challenges. Through carrying out Management and Profit Improvement activities and focusing on the 5 KFAs - Safety, Reliability, Margin, Opex and People, FREP promoted all kinds of work in an organized manner. The company withstood various challenges and realized continuous improvement in business performance, especially made profit in consecutive 3 months since June. Nevertheless, though make increasing endeavor, we still face with great pressure in accomplishing the annual operation tasks and the target of turning loses in gains confronting pressures/ difficulties from both market and business environment.

The 4^th Quarter as a decisive sprint is a critical stage for achieving the whole-year goal. We should fully recognize the importance of this stage and reinforce the sense of responsibility and urgency to the final battle, also well exploit all potentials, define gaps vs. target, enhance measures to tackle difficulties, concentrate our effort on priorities and key areas to ensure successful completion of all tasks.

First, well manage safety and stable operation, which are the precondition and foundation for all work and require no slackness at any time. The more serious the situation is, the more focus should be paid on safety and environment protection, thus to create a sound circumstance for operation and development: Take effective measures to reverse the incident-ridden situation of the first 3 quarters including combustion incidents and unplanned shutdowns; manage safety operation with seasonal countermeasures developed in advance; conduct hazard identification and mitigation thoroughly, particularly take undersea pipeline hazard elimination as a special task within the specified deadline; resolutely prevent major safety/ environmental incident and unplanned shutdown, and further improve our HSE performance and reliability of units.

Second, endeavor to improve profitability vigorously. Although good achievements have been made currently in the activities of Profitability & Management Simultaneous Improvement, there is still significant gap between overall profit and annual target. Facing the big pressure in profit, we should continuously implement all measures for tapping potentials and increasing profit with sustained optimization/ improvement toward the annual target; promote refining margin leveraging the favorable condition that Motor Diesel will be upgraded to GB IV from October 1^st and enjoy higher price for better quality in Fujian Province. Business Teams are expected to be self energized through benchmarking; take substantial measures on manufacturing management and operation optimization; further strengthen the management of KMVs/ KEVs,  thus to continuously enhance units’ operation and management. Business Teams should launch labor emulations in the theme of “discipline compliance, precise operation, cost reduction / profit increase” etc. to keep up good momentum of workforce, and to utilize management as motivation of profit improvement.

Third, accelerate the construction of EO/EG Unit and other margin improvement capital projects. The 4^th Quarter is the golden season for project construction. PMG and T&P are expected to strengthen project development mechanism, including clarify responsibility with accountable person appointed, and accelerate project construction into a climax in full-scale. Responsible management should remove all obstacles, overcome all difficulties, go deep into the construction sites, enhance coordination, facilitate construction progress, ensure on schedule completion of EO/EG Unit, DAU Deep Cut Revamp Project, and Asphalt Marine Delivery Project etc., and turn these projects to new motivators of profit.

Fourth, plan the next year work proactively. Strengthen communication with Shareholders on the company development plan. Strive for shareholders’ support on promoting the study of resid processing technology revamp, which will further reserve strength for an effective/ sustainable development of FREP.

The key to accomplish the 4^th Quarter work is maintaining good momentum and positive work-style. The whole organization of FREP should firmly establish the sense of ownership and mission; keep high morale and enthusiasm in work, cherish every day with no slack; make persistent effort in the work of every day or every shift with the stamina of “accumulate every stream to make oceans, make every small step to go thousands miles away” to ensure accomplishment of all tasks/ objectives on time.

To maintain good momentum and positive work-style, management in all levels are required to set examples. As the decision-maker, superintendent, organizer and coordinator, the management plays a decisive role in target accomplishment. The attitude and spirit of the management directly influence even decide the moral of the workforce, determining success or failure. All levels of management are encouraged to be career-minded with strong sense of responsibility, improve leadership, and be full of vigor in all time. Particularly in different situation, the management is expected to maintain positive attitude, to be confident/ concentrate/ accountable to work, and drive the business forward steadily with the spirit of “seize every minute since there is no time to waste”.

To maintain good momentum and positive work-style, the spirit of cooperation needs to be promoted. Make a correct analysis and judgment on the present situation and mission of the company; keep the enthusiastic and striving attitude continually; maintain a stable workforce with high alignment; be self energized/ encouraged by horizontal and vertical comparison; broaden benchmarking group and strive to close the identified gaps. Constantly implement the company decisions/ deployments in every stage/ steps of work from the beginning to the end of the year, with no difference in hard or easy times.

To maintain good momentum and positive work-style, execution should be in full force. All the management and staff should concentrate the mind and action on achieving our annual goals. Divide the goals layer by layer and convey the pressure level by level. Ensure implementation, superintendence and leadership can be conducted grade by grade. Keep persistent endurance and stamina to work and make constant efforts. Establish a good impetus that every shift’s good work make a good day, every day’s good work ensure a good period and every period’s good work guarantee a good month. Prohibit the thought of “wait and see” rigorously, which means taking action right after the work has been recognized and determined; enforcing implementation; improving effectiveness; ensuring fruitful outcome through good management; establishing a work atmosphere that emphasize resoluteness, prompt action and result. We believe that as long as the whole company makes firm/ constant effort on every work of each day or each shift full of vigor and enthusiasm, all of our objectives can be achieved.