In the morning on May 30th, the signing ceremonyof the EPC contract for the acid gas removal device of Shenhua Yulin ComprehensiveCoal Utilization Project for Circular Economy (Phase One Project) was held inthe Company. The ceremony, presided over by Xiao Zhenping, deputy GM of theCompany, saw the attendance of Mr. Zhou Guo, GM of the Company, and Mr. ZhangXiansong, GM of Shenhua Yulin Energy and Chemical Industry Co., Ltd, ZhangZhaokong, deputy general manager of Shenhua Engineering Technology Co., Ltd,Gao Min, deputy general manager of Shenhua Engineering Technology Co., Ltd, andheads of relevant departments of Shenhua Yulin and the Company and relevantpersonnel of the project department.

Shenhua Yulin Comprehensive Coal UtilizationProject for Circular Economy is a major demonstration project planned by theState for coal deep processing. It is also a major backbone project supportingthe development of Shaanxi's energy and chemical industry, and by far thelargest coal chemical project in the world. With high-end, refined,large-scale, advanced technology and other characteristics, it will be of extremelyimportant strategic significance to optimize local economic growth mode, driveregional economic and social development, promote comprehensive utilization ofresources, and propel the development of China's coal chemical industry.

Through intense bidding work, the Company stoodout among several competitors and successfully won the EPC contract for acidgas removal equipment. It was the first cooperation project between the Companyand Shenhua Coal to Liquid and Chemical Co., Ltd. in Shaanxi. The acid gasremoval device mainly includes four process units of low temperature methanolwashing, carbon monoxide cryogenic separation, high pressure PAS hydrogenproduction and freezing station, and auxiliary facilities and public works. Thesystem features a large scale, high pressure level, complicated process flowand a large number of devices. Upon completion, it will provide syngas fordownstream 1.8 million tons/year methanol and 400,000 tons/year ethylene glycolunits. The project is scheduled to start the operation in 2020.

Zhang Zhaokong said in his speech that he hopesthe two sides will cooperate sincerely, strengthen alliances and complementeach other's strengths, further enhance the level of cooperation, betterachieve mutual benefit and win-win results, complete cooperation projects ontime, quality and quantity, and promote mutual development. At the same time,it is hoped that the two sides will establish more cooperation projects to promotelong-term cooperation between the two sides and create more and more space forcooperation.

Zhou Guo said that the Company will adhere to theprinciple of being highly responsible for the owners, adhere to the idea ofnormative guidance and lifelong responsibility, and strive to build afirst-class unit, and vigorously promote the spirit of "one family, oneheart, one strength, and one goal". By carefully, comprehensively, andmeticulously preparing, strengthening planning and scientific organization, settingup an excellent management team, mobilizing all efforts, and paying closeattention to project investment, quality, safety, civilized construction andschedule management, the high quality and efficient completion of the projectwill be ensured for Shenhua Coal to Liquid and Chemical Co., Ltd.