On March 31, at the approval of the State Council, Sinochem Group Co., Ltd. ( “Sinochem”) and China National Chemical Corporation Ltd. ( “ChemChina”) will undertake a joint restructuring. Under such a joint restructuring plan, the equity interests of both Sinochem and ChemChina will be owned by a newly-incorporated company (the “New Holding Company”), which will be established and wholly owned by the State-owned Assets Supervision and Administration Commission on behalf of the State Council.

2On July 20, 2020, at the mid-year work meeting, Sinochem Petrochemical Distribution carefully reviewed and summarized the work of the first half of 2020 and analyzed the current situation and existing problems, and made arrangements for priorities in the second half of the year. Presided over by Wang Guolun, general manager of the Company, the meeting was attended by leaders of the Company, Sinochem Liaoning, and directors of each branch and each department.

On July 20, 2020, at the mid-year work meeting, Sinochem Petrochemical Distribution carefully reviewed and summarized the work of the first half of 2020 and analyzed the current situation and existing problems, and made arrangements for priorities in the second half of the year. Presided over by Wang Guolun, general manager of the Company, the meeting was attended by leaders of the Company, Sinochem Liaoning, and directors of each branch and each department.

On July 13, at the HSE work meeting of the first half of 2020, Sinochem Petrochemical Distribution summarized the results obtained in epidemic prevention and control, continuous optimization of system construction, progress in all safety work for the first half the year, and proposed suggestion in solving problems and shortages in work. Meanwhile, it arranged and deployed its next priorities. The meeting was attended by Li Bo, general manager of the Company, and other prominent Company leaders. It was presided over by the deputy general manager, Wang Guolun.

The severe epidemic broke out across the world. Logistics transportation is the “main artery” for product sales of companies. At the critical moments of the resumption of work and production, at the shipment site in Quanzhou, it’s heard that individual carriers' masks were in shortage. Some drivers wore the same mask for two or three consecutive days.

As a professional petrochemicals sales company under Sinochem Energy of Sinochem Group, Sinochem Petrochemical Distribution Co., Ltd. (hereinafter referred to as “Sinochem Petrochemical Distribution”) earnestly studied the content of important speeches by General Secretary Xi Jinping at the meeting concerning COVID-19 prevention and control as well as deployment of economic and social development work. By comprehensively promoting the orderly resumption of work and production and starting production and operation, Sinochem Petrochemical Distribution actively drove the coordinated development of upstream and downstream industrial chain enterprises and enterprises of all kinds.

The outbreak of COVID-19 completely disrupted the established plans of many companies and caused catastrophes across many industries. Energy and chemical enterprises also met great difficulties and challenges because of this. The outbreak led to the delay of downstream commencement of work, the shrinking demands, the rise of inventory in ports, the significant imbalance between supply and demand, and the sharp decline in market price; however, there are more enterprises with trend-following predictions, reliable channels, rich modes, and strict risk control emerging despite these difficulties. Recently, Shanghai Securities News and Futures Daily (media under People’s Daily) published articles about the precautionary measures taken by central enterprises. Enterprises with Sinochem Petrochemical Distribution as the representative safeguarded enterprises' production and operation in these troublesome times by taking diversified spot-future modes.

OnOctober25,LiBo,generalmanagerofSinochemPetrochemicalDistributionCo.,Ltd (hereinafterreferredtoas“SinochemPetrochemicalDistribution”),WangXiaoling,deputygeneralmanagerofSinochemPetrochemi