In 2010, Sinopec continued to follow the corporate mission of “developing the enterprise, contributing to the country, rewarding our shareholders, serving the society and benefiting our staff”. We have earnestly implemented corporate social responsibility while advancing corporate reform and growth. In 2010, we announced “Making Every Drop Count” as the Company’s CSR slogan. Our progress in both CSR development and practice has contributed to the sustainable development of the society along with corporate growth.
Year 2010 was the last year for China’s 11th Five-year Plan period. Our success story in the year helped to turn over a chapter of delivering all the targets in the period. During the past five years, we have continued to leverage our strengths in legacy assets and core businesses, shifting away from non-strategic areas, and developing strong momentum in potentially strategic portfolios. We have pressed ahead with our strategies of resources, market expansion, integration and international operations. Continuous improvement has been made in asset quality, market competitiveness, risk-hedging capability and contribution to the society. Our total assets have been doubled to RMB1.47 trillion. Group turnover has grown by 130% to RMB1.96 trillion. Payment on tax and fees has risen by 178% to RMB281.3 billion. Taxes and fees paid to the central government and regional authorities in the past five years have totaled RMB823.4 billion accumulatively. We have supplied to the market in five consecutive years with 619 million tons of refined products and 178 million tons of chemicals. We are very proud to be an admired player to drive the national economic growth, shareholder benefits and customer satisfaction.
Over the past five years, we have given priority to ensure the national energy security and the stable market supply. In terms of domestic exploration and production, we have achieved the stable production growth in the mature oilfields of the eastern China, fast ramp ups in the frontier areas of western China and massive development in natural gas business. Overseas hydrocarbon reserves and production kept growing significantly. In addition, we have set up 13 refineries of over 10-million-ton capacity each, 8 ethylene facilities averaging at one-million-ton capacity each. We have developed a number of crude terminals, matching storage facilities as well as long-distance crude and products pipelines. Three major industrial clusters along the Yangzi River Delta, Pearl River Delta and around Bohai Bay have been in place, creating integrated synergy and increasing resource utilization. Moreover, we have effectively secured crude supply by diversifying crude import sources and expanding the third party trading volume.
Over the past five years, we remain committed to the supply of clean fuels, premium petrochemicals and the delivery of quality customer services in the effort for excellent brand image. We spare no effort in delivering our promise in good product quality, sufficient quantity and customer satisfaction. Our fuels supply is available to over 15 million customers at 30,000 Sinopec service stations based on extensive marketing and distribution network. In 2010, we supplied 149 million tons of refined oil products and over 43 million tons of chemicals. Sinopec branded products and services are prevailing in every aspect of people’s life, including clothing, food, housing and mobility. We have completed the quality-upgrading program for gasoline products to meet domestic environment requirements, mitigating 50,000 tons of sulfur dioxide emission per annum. The overall quality of chemicals reached the national advanced level. These efforts helped to contribute to improve the quality of people’s life. By working with our strategic suppliers, we have remained a valuable supporter to increase the Chinese content of major equipment and materials supply and develop domestic manufacturing sector.
Over the past five years, we have laid strong emphasis on work safety, environmental protection and resource conservation. By carrying out “I Safe” campaign in the past three years, we have achieved generally safe production under complex operating conditions. Massive efforts have been made to optimizing industrial structure, upgrading industrial configuration, conserving energy, reducing emission, increasing resource efficiency and promoting low-carbon development. During the 11th five-year plan period, we have delivered beyond the national targets to save 14.11 millions tons of coals equivalent in energy consumption, reducing 34.66 million tons of carbon dioxide emission and 204,000 tons of sulfur dioxide emission. We are proud to have played an active part in saving resources and protecting our environment.
In the meantime, we have continued to promote science and technology development, improve innovation capabilities and management expertise. Our R&D success has strongly supported core business growth based on consolidated R&D resources, innovation in both theory and technology, as well as breakthroughs in key technology areas. In the past five years, we have been granted 4115 domestic patents and 405 international patents, obtaining 51 awards including national science and technology progress prizes and national invention prizes. We focused on enhancing corporate management, internal control, standardization, IT application, comprehensive budgeting, centralized treasure management and all-employee cost objective management. Thus a unique Sinopec management model has taken shape.
We remain committed to a harmonious labor relation by putting people first. By accelerating career development and talent training programs, we have witnessed enormous improvement in employees’ professionalism and proficiency. Employees at Sinopec are eligible with corporate annuity plan and pension system. We respect international employees of different nationalities and cultures, providing assistance to and solutions for the employees living in difficulties as well as taking good care of retired employees. At Sinopec, we encourage esprit de corps, promoting career development path for all types of talents and offering a cozy workplace for all employees.
Over the past five years, Sinopec has been an active stakeholder to promote social harmony and stability by fulfilling CSR commitment and engaging in public welfare undertakings. We have provided disaster-relief support, ensuring fuels supply during Beijing 2008 Olympiad, Shanghai 2010 World Expo, Guangzhou 2010 Asian Games as well as summer and autumn peak farming seasons. Our sufficient diesel and natural gas supply effectively relieved the market tension in different regions in time of emergency and big events. We have provided support in poverty regions, offering aid to Tibet, giving donations to Lifeline Express and youth education. In the past five years, we have built 161 Hope Schools for primary students living in poverty regions, supporting over 30,000 female students to complete their education based on “Spring Bud Program”, treating 18,000 cataract patients for free at Sinopec “Health Express” mobile train hospitals, and putting into operation a number of infrastructure projects in Tibet and poverty regions. We made a difference in the quality of life for the people of poverty regions, as well as contributing to regional development along with our own growth.
Year 2011 is the first year of China’s 12th Five-year Plan period. Looking ahead, we aim to shift the pattern of development, actively promoting sustained, effective and harmonious development of the Group. We are ready to continuously fulfill our CSR by securing energy supply, providing even better services, focusing on HSE management and low-carbon development, caring for employees and rewarding the general public. While achieving further corporate growth, Sinopec remains committed to rewarding the nation, our shareholders, the community and our employees.
