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The Company Held EIA Public HearingDecember 6, 2006

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On December 6, 2006, "EIA Public Hearing on BYC's Planning in 11th '5-Year' Period" was held in Yangzi Guesthouse, attended by leaders from Environmental Protection Bureaus of Nanjing Municipality, Luhe Districts and Nanjing Yanjiang Industrial Development Zone, delegates of Luhe People's Congress and People's Political Consultative Conference, officials from Nanjing Chemical Industrial Park, representatives of local residents in Changlu subdistrict and Yudai town, Yangzi Petrochemical Corporation and Shanghai South Petrochemical Environment Science and Technology Company Limited and the top management of the Company.

On the meeting, the Company introduced the expansion plan during the 11th "5-Year" Period, then elucidated on its environmental protection plan to ensure the minimum impact to the environment as well as the safety of the plants. Then, Shanghai South Petrochemical Environment Science and Technology Company Limited, as the environmental impact evaluation party, announced the result of its research on the environment status around the Company, concluding that the environment of this area was improving based on its long-term monitor on the conditions of air, water, soil, noise and so on. It also said that the Company would have very little impact on the environment during the 11th "5-Year" Period due to the implementation of advanced environmental protection measures. All the attendees appreciated the Company for its respect on the right to know of the local residents and efforts in environmental protection. They also raised their questions and suggestions, to which the Management of the Company listened carefully and gave answers in details.

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