We provide storage services in the coastal areas of Yangtze River Delta, Pearl River Delta and Bohai Rim where there are large demands for crude oil, refined petroleum products and petrochemical products. The strategic coverage of our storage network allows us to reach a large customer base and efficiently utilize our storage facilities. All of our storage tanks are located near the regions of our core markets and nationwide logistic hubs. According to the Nexant Report, we have the largest combined commercial storage capacity for crude oil, refined petroleum and petrochemical products in China (excluding SPR and facilities exclusively for internal use). During the Track Record Period, the capacity of our company-owned storage tanks remained at approximately 5.1 million cubic meters, approximately 97% of which is used for serving third-party customers. We also provide storage services to our intra-group segments、 rent third-party storage tanks to enlarge our storage capacity based on market demands. We have also undertaken to maintain the national SPR. We are entrusted with the responsibilities of storage, rotation and transportation for the nation’s crude oil and refined petroleum reserves, and endeavor to ensure the safety of our national oil resources.

Our strategically located storage facilities, strong brand and efficient storage management as well as strict compliance with relevant national standards enable us to operate our storage facilities at an optimal level. In addition to the strategic geographic distribution of our storage tanks, our storage and logistics business also derives its competitive strengths from our strong brand and expertise in operational management.

While we primarily provide petroleum and petrochemical storage services to our customers under our storage and logistics business, we also provide our customers with other value-added services including loading and unloading of trucks, vessels and pipelines, as well as wharfs of various scales, ranging from 3,000 tonnes to 300,000 tonnes.

Additionally, we are developing various other services, including: (i) mixing of bonded fuel oil and domestic fuel oil for bunker oil trading companies; (ii) facilitation of the clearance and other custom procedures; and (iii) storage for the settlement of crude oil futures transactions as designated by the Shanghai Futures Exchange.