The board (the ``Board'') of directors (the ``Directors'') of China Sanjiang Fine Chemicals Company Limited announced that the Group completed the construction of its 6th phases ethylene oxide (``EO'')/ethylene glycol (``EG'') production facilities with 1,000,000MT annual output and its ancillary upstream level production facilities on a high standard basis as at the date of this announcement. Such production facilities includes a light olefin production facility with 1,250,000MT annual output, a EO/EG production facility with 1,000,000MT annual output, a crude aromatic hydrocarbon hydrogenation unit with 250,000MT annual output, a butadiene extraction unit with 80,000MT annual output and a air separation unit with 30,000MT annual output and supporting transformer, storage and transportation, flare, and other public utilities and auxiliary facilities, which adopts a multi-material proportioning and feeding process, effectively responding to the price risk of a single raw material and improving the profitability of the equipment. The Group used global leading patented technologies and key equipment, instruments, and important pumps and motors to ensure the safety, environmental protection, and operational reliability of the facility.

Such production facilities will enable the Group to secure the ethylene and propylene supply via fully-integrated production facilities, have more balanced portfolio in terms of the varieties of input/output and the risk management and take a step further in building up internally circulated and fully integrated production facilities.