On October 28, 2006, the IPS (Integrated Petrochemical Site) Project Completion Acceptance Meeting was held at the Company's Reception Center, attended by Mr. Dai Houliang, Executive Director and Senior Vice President of Sinopec Corporation, Dr. Hapke, President of BASF East Asia Regional Headquarters Ltd, Mr. Dai Yueqiang, Vice Director of Jiangsu Provincial Economic and Trade Committee, and leaders and experts from concerned departments of the State Bureau of Environmental Protection, Jiangsu Provincial and Nanjing Municipal governments and SINOPEC.

After thorough discussion, the expert team of the State Completion Acceptance Committee unanimously agreed that the IPS Project was running smoothly and safely after completion and generating good economic results, all the designed technical targets had been achieved, therefore, the IPS Project achieved the state acceptance.

The IPS Project is the largest Sino-German petrochemical project and among the key projects of the 10th Five-year Plan of National Economy. The construction was launched on September 28th of 2001 and commercial operation started on June 28th of 2005. Since then, all the chemical plants have been running safely and stably due to the tight HSE management, and the products have alleviated the strained domestic petrochemical market of raw materials. The sales revenue from January to September of this year had reached RMB 11.9 billion.

Mr. Dai Houliang, Executive Director and Senior Vice President of Sinopec Corporation, Dr. Hapke, President of BASF East Asia Regional Headquarters Ltd, on behalf of the parent companies, congratulated the Company for its achievement of state acceptance and also hoped that the Company should give the full play to its advantages in technology, management, talents and product portfolios as a joint venture to further improve its operation, gain better economic results and make contributions to the development of the parent companies and the petrochemical industry in the world.