On the morning of September 3rd. the corporate safety inspection teamheld, at Logistic and Installation Co, its first meeting for major HSSEinspection in Ningbo covered areas in 2018. Xu Yijun, the executive directorand secretary of corporate CPC committee, present and specified hisrequirements on the meeting. Attendants to the meeting included all levels ofpersonnel from Construction and Erection Co., Logistics and Installation Co,Ningbo Tianyi Manufacturing Co and Zhenhai POX Project Dept and all members ofthe inspection team in Ningbo. This marked official kick-off the major HSSE inspectionin 2018.

To further implement theoverall planning for the annual HSSE inspection in 2018 established by thegroup company, four inspection teams were set up for inspections in and outsideof Ningbo, inherent design safety and logistics based upon the corporate planfor major HSSE inspection and actual production safety conditions. The teams wereled by the corporate leaders with its members including experts on engineeringdesign, technical quality, equipment, HSE, logistics and administration etc.

The inspection team introduced the itinerary for major HSSE inspectionin Ningbo Starting from September 3rd till Sep 7th, major HSSE inspection willbe carried out successively for home office of Logistic and Installation Co andthe pipeline project at Shitangxia, home office of Construction and Erection Coand the alkylation project, home office of Ningbo Tianyi Manufacturing Co,jetty for oversized items, Xiangshan Factory and various workshops.

Mr. Xu Yijun pointed out after his debriefing from various subordinates that,despite the arduous production tasks and great safety strain at the beginningof the year, various corporate subordinates intensified their safety managementand have taken targeted measures to ensure the safe and smooth operation of theproduction facilities.

For this major HSSE inspection, Mr. Xu requires as follows: 1. Take acorrect stance and firmly establish a comprehensive concept of safety risks.The safety risks shall be recognized from the point of view of politics. Sincethe 18th national congress of the CPC, the CPC central committee with comrade XiJinping as the core attached unprecedented importance to safety. The groupcompany also highlights prevention and control of various risks. Thesignificance of safety inspection shall be understood from the perspective ofrisk prevention and control. The production safety facing the group company inthe first half of the year was very severe, it is imperative to learn lessonsfrom accidents and carry out the remedies in a down to earth manner. 2. Weshould be correctly oriented and work vigorously to prevent and contain majorrisks in production safety. Safety risks are everywhere. We need to strengthenrisk management and control and management of accident potential. This major HSSEinspection shall focus on risks exposing operation systems, areas involved indirector operations, inherent safety and public safety so as to push forwardprevention of safety risks steadfastly and prevent occurrence of safetyaccidents. 3. We should improve the level of our safety management via inspectionand practical efforts. The inspection teams shall focus on key points andidentify effectively areas of concern. The organizations under inspection shalltake remedial measures to improve their safety management. This major safety inspectionshall be conducted by combining with actual production conditions, be problemcentric, take the inspection as an important means in identifying safety risksand accident potential, in improving safety management and guarantee to preventoccurrence of safety accidents to ensure good results are accomplished for thecorporate production safety.