On July 30, 2025, Sinochem Energy convened its 2025 Mid-Year Work Conference in Beijing. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the conference faithfully implemented the work plans outlined at Sinochem Holdings’ Mid-Year Work Conference. It reviewed the work of the first half of the year, analyzed the current situation, identified shortcomings, planned for development, and assigned tasks for the second half of the year. It also mobilized all the cadres and employees to focus on current business development goals and resolutely complete the annual production and operation tasks with confidence, perseverance, and proactive actions.

Hu Xuteng, Chairman, Party Secretary, and President of Sinochem Energy, delivered a speech entitled “Overcoming Difficulties to Ensure Budget Compliance, Rallying Strength for Development, and Continuously Striving to Turn Around Sinochem Energy’s Business Performance”. Leaders from Sinochem Holdings' relevant functional departments, Sinochem Energy's full-time external directors, leadership team, heads of functional departments and secondary business departments, totaling 95 people, attended the conference in person. The conference was presided over by Han Bing, Deputy Party Secretary of Sinochem Energy.

Hu Xuteng pointed out that the cadres and employees of Sinochem Energy have actively implemented the work plans outlined at the annual work conference despite an exceptionally complex external environment and arduous production and operation tasks since the beginning of this year. They have demonstrated courage and responsibility, ensuring that various aspects of operation and management have proceeded smoothly and steadily with progress. Phased outcomes have been achieved in key and challenging tasks. There has been a steady improvement in operational excellence, with enhanced efforts in market expansion and a greater potential for quality and efficiency improvements. Substantial progress has been made in deepening reforms, with remarkable results in resolving historical issues, reforming governance, and “streamlining for fitness”. Accelerated progress has been seen in transformation and upgrading, with positive outcomes in key projects, technological innovation, and digitization. The company has maintained constant vigilance in risk prevention and control, with a continuous strengthening of its HSE work, as well as risk prevention and control mechanisms. Consistent efforts have been made in Party building, including the launch of an education campaign to implement the central leadership’s “Eight-Point Decision” on improving party and government conduct, as well as comprehensive strengthening of organizational construction and talent team building.

Hu Xuteng emphasized that the company is currently at a critical juncture, where it must move forward or risk falling behind. It is essential to accurately assess the situation, recognize its own shortcomings, and focus on work priorities. The company should unite as one to carry out all tasks related to its business development.

Centering around the key tasks for the second half of the year, Hu Xuteng required upholding Sinochem Holdings' principle of responding to the uncertainties in the external environment with the certainty of its own work. It is crucial to resolutely adhere to the “three no relaxations”: not relaxing the focus on annual budget targets, not relaxing the focus on key tasks related to the company’s high-quality development, and not relaxing the focus on work safety. Tasks in seven key focus areas were planned:

1. Achieve Extraordinary Results: Explore new and superior crude oil procurement channels, promote the integration of “production, sales, and research” for new products, and make every effort to carry out major overhauls through unconventional measures.

2. Improve Operations: Strengthen operational excellence management, production optimization, technical equipment management, and business collaboration, striving to tap into potential and enhance efficiency in every possible way.

3. Enhance Benefits: Continuously improve the efficiency of production and sales coordination, deepen the integrated operation of domestic and foreign trade, further increase the volume and profit of international business operations, and spare no effort to expand the market.

4. Cultivate and Develop New Quality Productive Forces: Optimize the industrial structure, expedite the implementation of key projects, and formulate the 15th Five-Year Plan.

5. Drive Innovation: Further enhance technological innovation capabilities, carry out the “Insects Awakening” initiative through multiple channels, promote digital transformation, and continuously accelerate the pace of transformation.

6. Make Breakthroughs in Reforms: Continuously leverage the guiding role of assessment and incentives, expedite the resolution of historical issues, ensure the smooth implementation of various reform tasks, and address complex problems with determination and resolve.

7. Prevent Risks: Continuously carry out tasks related to work safety and ecological environment protection, strengthen operational risk management and control, and ensure the company's security and stability.

Faced with a new situation in reform and development, Hu Xuteng stressed that management teams at all levels should further study and implement General Secretary Xi Jinping’s essential thoughts on Party building, strengthen all aspects of comprehensive and strict Party governance, and lead high-quality development with high-quality Party building. He also put forward four requirements to set an example in the following aspects: raising political stature and charting a steady course; enhancing capabilities and making scientific decisions; building strong organizations and leading teams effectively; and ensuring strict implementation and maintaining integrity and accountability.

At the conference, Song Lichen, Vice President and Member of the Party Committee of Sinochem Energy, conveyed the guidelines of Sinochem Holdings’ Mid-Year Work Conference. Ma Zhongfeng, Chief Financial Officer, presented the economic activity analysis report for the first half of the year.

The conference also presented awards to representatives of recipients of the 2024 Corporate Outstanding Contribution Award and the Operational Excellence Award (Lean Management), Leadership Teams with Four Excellences, Model Workers, Annual Outstanding Individuals, HSE Advanced Units, HSE Advanced Teams, HSE Advanced Individuals, and the 2024-2025 Annual Recipients of the “Two Outstandings and One Advanced” Awards (Outstanding Communist Party Members, Outstanding Party Workers, and Advanced Grassroots Party Organization).