CSRC's Latest Announcement: Sinochem Intl's Industry Classification Transforms into Chemical Manufac

In the industry classification results of listed companies in Q2 2013 issued by China Securities Regulatory Commission (CSRC) on June 28, Sinochem International transformed from wholesale and retail industry into chemical manufacturing. This marks the company's phased achievement in industrial transformation.

This classification adjustment is of great strategic significance. It indicates that Sinochem International has achieved initial success in strategic transformation, further focused on its main businesses, and changed its business connotation by transforming from a trade company into an industrial group company focusing on R&D, manufacturing and processing. Now the company owns 11 fine chemical research institutes, 7 well-equipped fine chemical industrial bases with fine chemical capacity of 1.8 million tons/year, pesticide of 173,000 tons/year, rubber and oil palm plantations with a total area of 80,000ha, land reserve covering 273,000ha and processing capacity of 630,000t, shipment capacity of 620,000t and over 6,000 ISO tanks, 60 patents, and 15,051 employees of R&D, production and planting department, which accounts for over 78% of the total staff.

Meanwhile, this industry classification adjustment also means that Sinochem International's strategic transformation has been accepted by regulatory authorities and capital market. Furthermore, the average valuation of a listed company in "wholesale, retail and trade" industry is 13.5 times, while that of a listed company in "chemical material and chemical product manufacturing" industry is 21.53 times. The transformation in industry classification will further help Sinochem International improve its evaluation in the capital market, maintain the value of the listed company's shareholders, and promote its non-public stock issuance.

In recent years, in the fine chemical field, Sinochem International has acquired Jiangshan, Yangnong, Sinorgchem and other quality companies, and the collaboration and integration work has been advanced orderly, establishing an initial industry platform; in the field of natural rubber industry, the company has completed the rapid expansion of natural rubber planting projects in Africa and Asia; in the field of agrochemical industry, the company has successfully expanded its global market covering Australia and New Zealand; in the field of chemical logistics, its project of acquiring Newport's equity has been approved and the project delivery is expected to be in July, 2013.

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