I. PrefaceCreating Values from ResourcesSinochem is committed to becoming a respected company, which promotes the harmonious and healthy development of society, effectively integrating resources and creating values to benefit society, with strong brands and services.II. Table of Contents文：（略）III. Words from the PresidentFor 11 years we have been committed to developing and innovating in an enterprising way. Weathering through the world economic crisis, Sinochem is now embracing a new start..Starting from chemical business, Sinochem grows stronger with diversified development. Through a business portfolio of Chemical Logistics, Rubber, Agrochemical, Chemical and Fine Chemical, Metallurgy, by controlling up-stream resources, with leading capacity of distribution and logistics, we have built an integrated industrial value chain, which extends from resource control to technical brand and marketing services. These provide Sinochem with a unique edge against the competition, enabling us to create a brilliant future for the chemical industry.With business developing fast, we always value social responsibilities as our core strategy—always have and always will. We consistently optimize organizational structure, implement scientific management, coordinate our development and create value out of resources to the greatest extend, bringing maximum return to our partners and share holders. We attach great importance to environmental protection and harmonious development, contributing our best to the health of our nation and society. We are also committed to building a human-oriented environment, enabling our employees to make the best of their potential. Sinochem's corporate philosophy, “Integrity, Cooperation, Quick Learning, Meticulousness, Innovation and Excellence” has been embedded in all employees at Sinochem, creating a strong cohesive force which contributes to our customers, society and country.Inheriting the past glory, we embrace the dreams of the future. Sinochem will, under the guidance of Scientific Outlook on Development, focus on our core business, extend the up-and down-stream industrial chain, expand the international and domestic market, strengthen the capabilities of resource organization and customer services, become a respected listed company with strong market-orientated operation, industrialized operation, lean management and an international presence.Pan ZhengyiPresident, Sinochem International CorporationIV. About Us(1) Company ProfileSinochem International Corporation (Sinochem: 600500) is a major listed state-owned company, who focuses on international logistics, distribution and industrial investment in the following sectors, Chemical Logistics, Rubber, Agrochemicals, Chemical, Fine Chemical, Metallurgy and Energy. Its clients have reached over 100 countries and regions. The 2009 FY’s revenue amounted to 22.8 billion RMB with total assets of 20 billion RMB.Based on its core businesses, Sinochem is committed to expanding industrial value chain athome and abroad, strengthening capabilities in resource integration, market organization and service improvement, with the aim to be an “Inno vative Company in the Chemical Industry with Branded Products and Excellent Services.”Sinochem Group, the holder of Sinochem International Corporation, is one of the state-owned backbone enterprises under the SASAC, and has been included in the Fortune 500 Companies 20 times, ranked 203th in 2009.Since its listing in the Shanghai Stock Exchange in 2000, Sinochem has been repaying its shareholders and society with excellent performance. Sinochem has been rated for 9 consecutive years as one of the “Top 100 Best Managed Listed Companies in China” by “Fortune”, with other honors including, “Best Board in China”, “Most Respectful Listed Company in China”, “Most Responsible Listed Company in China” and “The Best Managed Listed Company in China”.Integrating business practices with social values, Sinochem is focused on sustainable development and environmental protection, striving to build an energy-efficient and environment-friendly society.(2) Core CompetenceSinochem is committed to creating value and opportunities in segmenting industry through creative thinking, upgrading industry value through integrating core elements, reducing cost, improving performances & efficiency, delivering value and promoting brands for our clients through value-added services.Through a business portfolio of Chemical Logistics, Rubber, Agrochemical, Chemical & Fine Chemical, Metallurgy, Sinochem starts with upstream resource control, relies on leading domestic distribution and logistics capabilities, establishes an integrated industrial value chain from resource control, technical branding to marketing services. These provide Sinochem with a unique edge against industry competition in China.V. Core BusinessThe booming core businessLogistics-We provide solutions to every aspect, including freight forwarding business, warehousing service and logistics both by land and by sea.The logistics business at Sinochem covers various sectors, including shipping, ISO tank multimodal transport, freight forwarding and warehousing, tank terminal and hazardous article processing. With total assets of 5 billion RMB, we provide customized multi-level, high-efficiency and cost-effective integrated solutions for marine and land-based logistics, as well as industrial assurance.ShippingSinochem Shopping Co. Ltd. (Hainan), a wholly-owned subsidiary of Sinochem, is one of the largest professional shipping service providers for liquid chemicals in China. With 40 IMO II/III bulk liquid chemical vessels capable of 1,000–20,000 tons, providing domestic and international lines for liquid chemicals. Our transport services cover various bulk liquid chemicals, high-riskliquid chemicals, acids, oil products, edible oils, oil and grease and other special chemicals, and we are the only shipper in China for PO (propylene oxide) and TDI (toluene diisocyanate).Through StoltChem Ship Management (Shanghai) Co. Ltd., our joint venture with Stolt-Nielsen, we have built a complete and ever improving “Safety Management System”, compliant with international standards to ensure the highest level for our fleets in terms of safety, quality and efficiency. We have a professional team with abundant experience in ship design, building and operation, which has supervised the manufacturing of over 20 liquid chemical carriers, including 3600DWT, 9000DWT and 13000DWT IMOII/III.As one of the first liquid chemical ship owners obtaining permission for non-stop shipping to Taiwan, Sinochem has been playing an active role in promoting the co-operation and exchange between the Mainland and Taiwan. With 25 vessels obtaining non-stop shipping permission, Sinochem has become a major player in the Mainland-Taiwan liquid chemical transport market.ISO Tank Leasing and LogisticsShanghai Safe-Transport Chemical Logistics Co. Ltd., a wholly-owned subsidiary of Sinochem, is the largest ISO tank logistics service provider in China, with over 3,000 ISO tanks of T11, T14, T50, electric heating, hydrofluoric acid and land-based transport, as well as supporting fleets for liquid chemicals and a highly efficient professional management team. Safe-Transport is committed to the transport of liquid chemical, liquors, fruit juice and quality edible oils, with networks covering the whole country as well as Europe, America, Asia, the Middle East and India.Freight Forwarding and WarehousingSinochem Intertrans Co. Ltd., a wholly-owned subsidiary of Sinochem, is one of the earliest Class A international cargo forwarding agencies approved by the state, it provides marine/land-based/air warehousing and forwarding, customs declaration, inspection, ship rental, cabin booking, shipping agency, international multi-mode transport, certification of transport and logistics consultancy services.Ports, Logistics Parks and Tank TerminalsSinochem Intertrans (Chongqing) Co. Ltd. provides enterprises in the Chongqing Chemical Park with various services, including ports, tank terminals, pipe racks, ISO tanks, hazardous goods warehouses and chemical shipping on the Yangtze River.The Sinochem Xingzhong Oil Transhipment (Zhoushan) Co. Ltd. and Sinochem Xingyuan Oil Transhipment and Storage (Zhoushan) Co. Ltd. under Sinochem, provide ports and tank terminal services with an annual capacity of 26 million tons, making it the largest commercial oil transport and storage service provider in China.Rubber- We are engaged in the whole chain from planting and processing to sales and marketing, keeping it environmental friendly.The rubber business at Sinochem covers the whole industrial process, from rubber planting, production and processing to marketing and value-added services. With integrated international and domestic services, Sinochem is now the largest and strongest rubber marketing service provider, and a strong player in the international natural rubber resource market.Hainan Sinochem Anlian Rubber Co. Ltd. and Xishuangbanna Sinochem Anlian Rubber Co. Ltd. is controlled by Sinochem, and has an annual processing capacity of 140000 tons of naturalrubber, 70% of which is special rubber for high-end radial ply tires – a high-quality rubber source for world-famous tire companies in China.In line with building upon the resource focused strategy, Sinochem has acquired EUROMA RUBBER from Malaysia, and GMG, a listed company in Singapore, and has also successfully landed in the African, American and European market. We own a 40,000 hectare rubber plant based in Cameroon, and processing sites in Cote d'Ivoire, Indonesia and Malaysia. Currently the overseas rubber production capacity of Sinochem amounts to 170,000 tons, serving major tyre manufacturers including, Bridgestone, Michelin and Goodyear.Meanwhile, natural rubber resource organization sites are being built in Thailand, Malaysia, Indonesia, Singapore, Yunnan and Hainan in China. We also hold the shares for the Yunnan Natural Rubber Industry Shareholding Co. Ltd. and Hainan Natural Rubber Industry Shareholding Co. Ltd.In line with the prin ciple of “providing value-added services for quality customers”, Sinochem Rubber provides high-quality resources and customized value-added services to our core customers , including, Bridgestone, Michelin, Continental, Hankook and Maxxis, through the distribution network all over the country, central warehouse, and logistics services. We are growing with these outstanding tire enterprises.With excellent services, strong capabilities and a high reputation, Sinochem has become an industry leader. Sinochem is the largest dealer of halogenated butyl rubber to Exxon Mobil, the general agent of NBR to JSR in China, the largest distributor of ethylene propylene diene monomer to DSM from the Netherlands and the distribution partner of Sinopec and PetroChina for SBR, BR and SBS. Besides, Sinochem is engaged in the export of SBR and BR to South Korea, Iran, Thailand and Eastern Europe, as well as import of butyl rubber and IR from Russia.Agrochemicals and Chlor-Alkali BusinessWe offer quality products to build our brand and promote internationalized business.Sinochem is the only domestic company that owns premium international pesticide brands. With many years’ experience in brand marketing, Sinochem, with its strength in channel and branding, is actively exploring the opportunities for up and down-stream integration to effectively ensure stable, sustainable and rapid growth.For pesticide products, Sinochem mainly deals in herbicides and insecticide, with four international brands: Machete, Machete Plus, Harness and Lasso. Meanwhile, Sinochem is the sole agency for three international pesticide brands (Roundup, Rodeo and Omex) in China, as well as the regional agency for Command and Furadan. Through cooperation in various forms, (such as exclusive distribution and regional agency, etc) with global leading agrochemical companies—Monsanto, Syngenta and FMC, Sinochem has established its leading position in the domestic premium pesticide market, with comprehensive marketing network and customer service system comprising over 100 regional agents, 2,000 root dealers. With the philosophy of “serving the farmers”, we provide consultation on pl anting and product application, which has been well received amongst them.In addition to marketing services, Sinochem is actively extending the upstream industry, accelerating the steps for international operations. By acquiring Nantong Jiangshan Agrochemical & Chemicals Co. Ltd., Sinochem has established a production site compliant with environmental protection standards. Our comprehensive strength in R&D is improved by cooperation withSYRICI. In Feb. 2008, Sinochem acquired amide herbicide business of Monsanto in India, Thailand, Vietnam, Pakistan, Bangladesh and Taiwan, expanding the overseas distribution channel. Currently, Sinochem’s share in rice herbicide market in the Philippines, India and Thailand is 31%, 55% and 45% respectively, and the overseas sales channel has been broadened ever since.The integration and extension of R&D, production and market have laid solid foundation for Sinochem to become a professional global supplier of integrating technology, production, marketing, services and brands in the agrochemical sector.Chemical-We supply value-added services extending from network distribution to manufacture.The chemical business at Sinochem provides efficient, economic, professional and environmental-friendly chemical distribution services to manufacturers at home and abroad. We are committed to becoming, through the construction of a distribution network, distribution teams, operations system and technical support platform a comprehensive chemical distribution service provider with international and domestic influences.With a history of 50 years in the foreign trade of chemicals, with abundant experience in chemical marketing and good co-operation with up- and down-streams, Sinochem has a comprehensive portfolio ranging from basic chemical materials to polymers and synthetic materials. Sinochem also has complete logistics, warehousing and technical support, as well as a distribution network covering the major areas in China, enabling Sinochem to provide our customers with a complete service in a timely and efficient manner.In addition to co-operating with international chemical suppliers including Dow, BP, Shell, Exxon Mobil, Chevron, BASF, Bayer, Dow Corning, SK, SABIC, IPCC, FPC, PetroChina and Sinopec, Sinochem also provides professional distribution and delivery service packages to leading domestic companies, including, Panyu Futianchem, Xianglu Petrochemicals, Zhejiang Juxiang, DOW Zhangjiagang and Jiangsu Samuchem, as well as value-added services to numerous small and mid-sized chemical companies.Actively exploring the fine chemical sector, Sinochem has built a polyurethane processing and production site in Taicang, Jiangsu, which provides independent R&D capabilities, processing and production, with the focus of R&D on polyether glycol, polyurethane system material and surfactant applications. Our products mainly include: rigid foam, flexible foam, elastomer, case glycol, POP, composite polyether, demulsifier, defoamer for medical use and cutting fluid.The Organic Synthesis & Analysis Lab (OSAL) of Sinochem at Shanghai Zhangjiang Hi-tech Park undertakes R&D work on fine chemicals, providing capabilities for organic chemical synthesis, the study of new process trends and qualitative/quantitative analysis. Specialized in R&D in the fields of pharmaceutical intermediates, agrochemical and innovative polymer chemical materials, OSAL provides technical industrial consultancy for Sinochem, for the strategic development of the fine chemicals business.Metallurgy and Energy-We promote the values by not only resource exports but multiple businesses as well.One of the core business units at Sinochem is Metallurgy and Energy, which mainly deals in iron ore, coke, metallurgical coal, and power coal. We are committed to becoming acomprehensive leading operator with integrated production, logistics, technology, trade and services in the metallurgy and energy sector.Sinochem is one of the Top 5 iron ore importers in China, with an annual import of over 10 million tons. After 10 years’ development, we have established a sustained and stable c o-operation with major mining enterprises in the world. Since 1990, Sinochem's annual coke export has been over 1.5 million tons, topping the domestic market for many years. We have invested in three coking enterprises including, Shanxi Huanda, which provide an annual capacity of over 2 million tons, serving mid-sized and large steel groups and alloy manufacturers from Europe, India, Japan, South Korea, South Africa and the Americas. Metallurgy and Energy is also engaged in the coal industry to provide domestic customers with quality resources at home and abroad, including metallurgic coal and power coal.VI. Social Responsibilities- From a Leading Listed Company to an Extraordinary Corporate CitizenMaking profit is not the sole mission or responsibility for Sinochem.At Sinochem, we believe the success of a company is closely related with health and harmony of society.Whilst growing rapidly, Sinochem attaches great importance on its corporate social responsibilities. Through innovation of infrastructure, environmental investment and technical upgrades in core businesses of Logistics, Agrochemical and Rubber, Sinochem has become an industry benchmark in Environment, Health and Safety.Environment, Health and SafetyEnsuring the health and safety of people is a basic responsibility of modern corporations. Sinochem implements the EHS system across the company, and integrates it as a key managerial element in production and operations.Sinochem is committed to the sustainable development of the company, strictly implementing environmental laws, regulations and standards of the government and industry in all businesses units, providing safe, reliable and quality products and services to society.Public WelfareSinochem places great responsibility in the promotion and development of a harmonious society. We contribute by fulfilling CSR and playing an active role in public welfare activities, in line with the philosophy of “From Society, To Society”.Employee SecuritySinochem considers employees to be the most valuable assets of the company under the guidelines of “Conformity on labour laws and regulation s, fair working opportunities, promotion of employees’health and comprehensive development”.VII. Entrepreneur Culture- Constant Pursuit of Excellence…Our constantly evolving mission requires us to keep our entrepreneurial spirit of forging-ahead. Looking forwards, we will remain customer driven, stick to the concept of Lean, EHS and Harmonious and Sustainable Development, constantly explore and create value upgrades through creative thinking..Integrity, Co-operation, Quick Learning;Meticulousness, Innovation and Excellence。
