In December 1998, Sinochem International Corporation, which was derived from the business of rubber, plastics, chemical products & logistics and transportation operations, was founded in Beijing, and it publicly issues A share 120 million at Shanghai Stock Exchange, financing 946 million Yuan in the next December. In March 2000, Sinochem International Corporation was listed.

Be marketing operation-oriented, Sinochem International Corporation conducted strategically southern move with its headquarter to Pudong Shanghai in July 2001, as to address the expectations of major customers and the petrochemical markets as well. For six years, the company has been pursuing the development strategies of extending to industrial upstream and downstream; also, the company endeavors on its transformation from a foreign trade agent company to an integrated solution supplier with sound marketing capability and stable profitability. With the continuous advancement of the four core operating sectors: rubber, chemical engineering, metallurgy energy, chemical logistics, the company has customers over 100 countries and regions in the world, and the sales revenue has reached 1.9 billion USD.

Taking the business filed of chemical logistics for example, on the basis of the synthetic analysis on market demand and correct evaluation, the company has consolidated and expanded its competitiveness advantages to a great extent: for several years, the scale of operation and the service capacity of our subordinated maritime shipping companies have been improved rapidly, with the actual tonnage of marine shipping achieved 1, 540, 000 tons, of which 410, 000 tons come from the internal superior customers. Long-term shipping orders has been conducted with the majority of high-end customers, such as Shanghai Saike, Shell China, Nanjing Yangba, etc., with its market share increased gradually, which reached over 21% in the high-end market of internal trade shipping. As for the establishment of specialized chemical vessels, the quantity of vessels achieved 19, with shipping capacity of 102, 600 tons at the end of 2005, and ranked the first place in domestic liquefied chemical products industry. With the improvement of fleet management level, the competitiveness advantages have initially taken its shape. On land freight logistics services, our land freight system has taken shape, taking ISO-tank transport services as the major form. The largest domestic transfer bases of petroleum for commercial uses—projects of Sinochem Xingzhong and Xingyuan storage dock that are invested by our company, have witnessed a steady increase in the operating performance; meanwhile, the strategic layout of other storage container projects are carried out.

In the field of rubber business, the market share of our natural rubber sales has been ranked the first place for several years. Besides the consolidation and enhancement of leading position in current trade marketing, the company facilitates the integration strength in the expansion to upstream resources. As for natural rubber, joint with the strategic cooperation with Hainan and Yunnan , the company also has, through investment, merger and acquisition, become the dominate shareholder of Hainan Sinochem Enlian, Yunnan Xishuangbanna Sinochem Enlian and other projects, and formed initial strategic layout in domestic non-governmental rubber resource integration. Based on the cooperation with the afore-mentioned two Agricultural Reclamation Groups, the company realized the differentiated development of product and technology, which has facilitated its competitive advantage in the acquisition of domestic natural rubber and product technological services; for synthetic rubber, the company has consolidated and expanded the strategic alliances with such core suppliers as JSR, DSM, EXXONMOBIL, THAIRUBBER, etc., and greatly enhanced the marketing and technological service capacities via firm upstream resources and high-efficient marketing channels;  meanwhile, through the integration of marketing, industry, technology and brand in rubber business field, the company’s customer-oriented services have been greatly promoted, with the embedding of supplier system with transnational tyre corporations, such as Michelin, Bridgestone and Goodyear, as well as domestic tyre enterprises as Shanghai Tyre, Guizhou Tyre, etc. Moreover, valuing hedge plan as the means to avoid the risk of price fluctuation, the company vigorously promotes new brands and the development of new products , as to make it come true for the sustainable growth of rubber business.

As for metallurgy & energy business unit, Sinochem International Corporation, as the strongest coke exporter in China, annually exports nearly 1.5 million ton coke in recent two years, which occupies 10% of the total domestic export volume. Relying on its sound logistics organizing capacity and considerable services, the company not only makes great contributions to the profits growth of the year 2004, but also wins the public trust from suppliers and customers, especially international purchasers. In the year 2005, under the market environment of coke price decline, the company, fully availing itself of its leading position in the field of coke export as well as its strategic cooperation partnership with large-scale steel companies in Europe, America, Japan and Korea, strengthened its cooperation with domestic core suppliers and logistics service providers, and conducted continuous innovation on supply chain management on one hand; on another, the company vigorously exploits overseas new markets and customers, including India, Brazil. Highlighting the integrated operation of iron sand, steel products and coal products for high-end customers, the company has guaranteed that the metallurgy & energy business create value sustainable for the company.

As the traditional business of the company, the chemical business maintains its competitive edge in the trade distribution field, with the export volume of paraffin taking up 8% of the total volume nationwide, and the import volume of pesticide taking 10% of the total domestic import volume. In addition, with fundamental chemical and plastic business as the major integral parts of East China areas, pigment, paraffin, specialty chemicals and rare metals take up considerable market shares. Since 2005, pursuant to the strategic thought of “pursuit of the leading segmentation field”, the company has undertaken reconstruction on the traditional chemical business sector, and has defined the enriched operating mode of taking the export of agro-chemical and specialty chemical products, PVC and chemical segmentation products as the key and integrating with elements like technology, industry and marketing, etc. For example, in agro-chemical business unit, the company has purchased the exclusive management right of the four famous pesticide brand of Monsanto Company in the Chinese mainland. In addition, the company conducted differentiated operation for the brands, and has gradually transferred to a marketing service provider that directly provides technology services for end-users. On the other hand, the chemical business has witnessed the striding forward towards extending to the upstream: fine chemical laboratories have been built in line with international standards; the company also invested and bought shares in Xi’an Jinzhu environment refrigerant project. Moreover, by the end of 2005, the share holding Sinochem Sanlian PVC project was put into production.

Hand in hand with the core competitive edge of its main business, Sinochem International is always dedicated to the establishment of standardized corporate governance system, which takes the domestic lead in entrusting the most prestigious Standard & Poor’s to conduct corporate governance rating. In the rating result of 2005, of the 80 key sectors of governance under evaluation, Sinochem International totally achieved 61 positive appraisals, 15 negative and 4 neutral and uncertainties, which was placed medium high level in an international standard. With the consummating of the corporate governance, the company has successively achieved the honors of “Top 100 best domestic listed company”, etc. In August 2005, the company successfully its stock right splitting reform after its was passed at the first temporary shareholders’ meeting, which has built a solid foundation for the strategic operation and sound capital market for the company.