Sinochem Energy Co.,Ltd. conduct direct sales of refined petroleum products and conduct our merchandise and service business, including operating convenience stores and providing ancillary automobile services. We also conduct wholesale of refined petroleum and petrochemical products to domestic customers.
As of March 31, 2018, we operated 568 service stations in our retail business. We primarily sold gasoline and diesel products to individual consumers and car drivers. We had the fourth largest network of branded service stations in the PRC in terms of the number of service stations as of March 31, 2018, according to the Nexant Report.
We operate the wholesale business by selling gasoline, diesel, fuel oil and kerosene to service stations, factories, construction sites, vehicle fleets and other domestic clients including state-owned petroleum companies. In particular, we collaborate with 239 small-scale private service stations by granting them the use of our brand name. We collect annual service fees, grant them the right to use our designs and provide employee trainings. Under the relevant agreements with our wholesale customers, we determine the prices of refined petroleum products based on market prices.
Suppliers of our retail and wholesale businesses include refineries and trading companies. The procurement prices of refined petroleum products from the suppliers are determined based on the product specifications and in line with market prices, below the maximum wholesale prices set by the NDRC. Our customers include third-party trading companies and manufacturers of chemicals and new materials. We determine the prices of our petrochemical products based on benchmark prices pursuant to certain pricing formulas.