The year 2024 proved exceptionally challenging as global economic recovery remained under pressure, geopolitical risks escalated significantly, international oil prices experienced volatile downward trends, and acute supply-demand imbalances emerged. These combined factors posed tremendous challenges to the Company's production and operations. Confronted with this complex landscape, we resolutely implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly studied the guiding principles of the 20th CPC National Congress and its Second and Third Plenary Sessions, and aligned our actions with the important instructions given by General Secretary Xi Jinping during his inspection tours to Shengli Oilfield and Jiujiang Petrochemical. Guided by "Keeping in Mind the Instructions, Advancing with Gratitude, Innovating for Development, and Striving for Excellence", we optimized production operations, coordinated cross-sector efficiency enhancements, and advanced regional synergy optimization. The Company achieved operating revenue of 3.14 trillion yuan with total profit reaching 101.08 billion yuan and net profit reaching 82.53 billion yuan. Our key economic indicators maintained superior levels, securing top-tier operational performance among central SOEs.

We made in-depth efforts in systematic optimization, achieving new breakthroughs in production and operational performance.  In domestic upstream operations, we vigorously implemented the Seven-Year Action Plan, strategically securing and expanding mining rights. Significant breakthroughs were made in Cambrian ultra-deep shale gas exploration in the Sichuan Basin and risk exploration in newly acquired mining areas of the Songliao Basin. New exploration achievements were attained in shale oil new zones and strata, offshore areas, and "three new" fields in eastern China. The Shengli Jiyang Shale Oil National Demonstration Zone accelerated construction, with natural gas full-industry-chain profits reaching historic highs. In international upstream operations, we continuously optimized asset structure, achieving both total profit and free cash flow exceeding 10 billion yuan each. The refining sector maintained dynamic resource coordination, flexibly adjusted product mix, maximized profitable processing volumes, accelerated key aviation fuel pipeline construction, deepened regional optimization, and steadily advanced low-cost oil conversion and high-value oil specialization. In chemicals, we implemented customized "one-enterprise, one-strategy" approaches for marginal benefit analysis, facility load adjustment, and production plan optimization, consistently increasing the proportion of high value-added products in three major synthetic materials and fine chemicals. The fuels marketing division strengthened market expansion through precise customer marketing, effectively consolidating market share. Businesses including refining sales, chemical sales, catalysts, petroleum engineering, and petrochemical engineering all delivered solid operational results.

We forged new paths through intense competition, opening new prospects for industrial transformation and upgrading.  Anchored in high-end, intelligent, and green development directions, we actively cultivated and developed new quality productive forces. The Tianjin Nangang Ethylene Project successfully commenced operation, while Zhenhai Refining & Chemical's Phase II expansion and high-end new materials project achieved full mechanical completion. Progress was accelerated on Maoming Petrochemical's refining transformation and ethylene quality improvement initiatives, with steady advancement in retrofitting aging facilities. Our transition to becoming an integrated "oil-gas-hydrogen-electricity-service" energy provider gained momentum, marked by the establishment of 6 hydrogen energy corridors and the construction of 142 hydrogen refueling stations, including our first overseas facility. We deployed over 10,000 charging and swapping stations nationwide, with monthly charging volumes ranking among China's top ten. In strategic emerging industries, we achieved industrial production of EVOH and accelerated import substitution through flagship products like PVA optical films. The Ordos and Ulanqab green hydrogen projects progressed steadily, while our cumulative geothermal heating capacity reached 120 million square meters. Notably, we drilled China's deepest geothermal scientific exploration well in Hainan and surpassed 2,000 MW in renewable energy installations. Internationally, we completed the Qatar North Field Phase II expansion and Kazakhstan polyethylene project acquisitions, and successfully entered Australia's fuel retail market.

We scaled new heights through relentless innovation, achieving groundbreaking accomplishments in technological self-reliance.  By actively integrating into the new national system for scientific advancement, we spearheaded the establishment of the National Key Laboratory on earth science while contributing to the development of the Xinjiang Base of the Huairou National Laboratory and the National Technological Innovation Center for Oil & Gas Geophysical Exploration. Through intensified efforts in original technology development and future industry research, we achieved a series of major breakthroughs: Remarkable progress was made in core technologies including electric fracturing and high-purity helium extraction, with China's first stable production of implant-grade white ultra-high molecular weight polyethylene fibers for long-term medical use. Notably, we pioneered the global geophysical exploration industry's first 5G-enabled intelligent nodal acquisition monitoring system, developed the world's highest-power marine fracturing equipment for China's inaugural large fracturing vessel, and commissioned the first-of-its-kind industry-scale esterification hydrogenation cyclohexanone production unit. Specialized products such as animal vaccine white oil adjuvant and ultra- high voltage transformer oils entered mass application. The deep integration of digital intelligence with industrial operations yielded transformative results, evidenced by the launch of Intelligent Operations Center 2.0, the national recognition of our Fundamental Physical Properties Database in China's "Top 100 Engineering Projects", and the completion of the world's first digital twin-based smart ethylene plant.

We strengthened our governance through rigorous benchmarking against world-class standards, achieving new heights in corporate management.  By vigorously implementing the Reform and Deepening Enhancement Initiative, we optimized headquarters organizational structure and functional configurations, initiated supervisory board reforms, participated in establishing China Resources Recycling Group, and advanced flattened management structures in refining and chemical enterprises, completing 75% of group-level reform tasks. We fully cooperated with the National Audit Office's economic responsibility audit, implementing immediate corrective actions upon identification. The World-Class Enterprise Value Creation Campaign yielded substantial progress in strategic intensive financial control, featuring centralized and efficient treasury operations, continuous debt structure optimization, and industry-leading financing costs among central SOEs. Our Three-Year Action Plan for Listed Company Quality Improvement concluded successfully. Enhanced risk control systems ensured comprehensive oversight of high-risk operations, safeguarding against systemic risks. High-quality collaboration with central ecological environmental inspections established sustained rectification mechanisms, resolving critical issues. The Safety Management Enhancement Year initiative implemented dynamic risk classification and hazard elimination alongside persistent "Three Foundations" reinforcement, maintaining overall safe operations. Launching Phase II of the Green Enterprise Action Plan, we intensified pollution prevention campaigns and comprehensively advanced "Zero-Waste Group" construction.

The new era demands renewed action, and the new journey requires even better performances. In 2025, guided by the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Second and Third Plenary Sessions of the 20th CPC Central Committee. With unwavering confidence and determination, we will fully dedicate ourselves to efficiency enhancement and value creation, aiming to achieve high-quality completion of our annual objectives. We will ensure the successful conclusion of the 14th Five-Year Plan while laying a solid foundation for the smooth launch of the 15th Five-Year Plan, vigorously advancing the development of China's petrochemical industry to compose a new chapter of Chinese-style modernization.