In recent years, the Company carried out the development strategy of “Resource, Market, Integration and Globalization”, principle of “Six Unities”, and policy of combining construction with application while emphasizing application. We energetically conducted IT construction and application with the core of ERP. Some departments operated management platform and production commanding platform through ERP to implement daily work. We achieved obvious progress in major information system construction and application, like concentrated fund management and business publicity. ERP using capacity was increased both at headquarter and subsidiaries. In-depth application of information technology played an important role in promoting management innovation, realizing cost potential, and enhancing core competitiveness.

ERP construction and application stably move forward, leading to improvement of scientific management on production and operation. ERP system has been established at the level of Sinopec Corp. units, and database construction updated achievements. By end 2009, ERP systems have been successfully applied to 85 branches and subsidiaries both upstream and downstream. Through the activity of the Year of ERP Application, using capacity in headquarters and subsidiaries were both enhanced. ERP application became an integral part of daily operation. Application of ERP system has mounted up to stance in subsidiaries. We deepened work on reaching the standard of ERP and cultivating application model. 68 enterprises were up to the standard at the end of 2009 so that we realized our target of over 80% qualified enterprises. Core business of the enterprises was regulated managed owing to a practical influence of ERP control function in the aspects of plan, fund, supplier and client.

Construction and application of major operation and management system like fund concentration and business publicity achieved new breakthrough. On-line use of fund concentration management system enabled the enterprises a concentrated fund control and distribution. In 2009, remaining domestic monetary fund dramatically decreased while fund utility rate was increased and expenditure was saved. Major business publicity system realized on-line disclosure of major business and database management, such as common procurement, refining products independent sales , chemical products sales, refined oil products sales and procurement, and engineer construction, leading to a more open and transparent business. We finished construction of a comprehensive budget management system for refineries so that departments in headquarters and every enterprise can supervise and inquiry production situation and collect an all-round report data. Therefore, analysis report became more timely and accurate, capacity on fine management and budget management were strengthened. Public website of the Sinopec Corp. made remarkable progress. In the evaluation of the 1st China Listed Company Website and evaluation by British authoritative institution, Sinopec Corp. website respectively won the Most Favorable Listed Company Website among Investors and the Best Listed Company Website in Investor Relations.

Function as a platform for production and operation was further strengthened, and management in headquarters and enterprises entered a new phase. The headquarter production and operation commanding system has became a unified platform for concentrated dispatch and command. Application of this system brought considerately profit in optimizing structure to enlarge aggregate, supervising oil price to adjust storage, optimizing transportation to reduce shipment demurrage. Application of supply chain system was deepened. PIMS model was conducted on-line in headquarter to connect subsidiaries about yearly and quarterly production plan, which brought benefit in increasing efficiency and regulating management on the plan. Through usage of XPIMS model, the integrated refining and chemical plants optimized crude and raw material procurement and realized a rational arrangement for the exchange material. IC fuel card system was further perfect while its consumption function was broadly promoted in convenient stores.

The Company comprehensively put forward IT construction and application, achieved initial fruits in better management, realizing cost potential and exploring market. E&P database construction in oilfield enterprises stably stepped forward. Production System optimization took an initial shape. Source data acquisition system was regularly acquired and commonly shared in Shengli, Jianghan, Henan and other oilfield enterprises. Shengli pilot data center established a data management and service mechanism. Energy-consumption and pollutant-emission are both reduced through pilot water flooding and storage & transportation optimization projects. Production implementation system provided refineries accurate and timely information about material and process. Stable APC system made contribution to save energy, decrease consumption, increase yield and enhance quality. Spreading LIMS system helped improve laboratory automation management. Steam pipeline network and intellectual monitoring system also devoted to energy-saving and consumption reduction. Comprehensive analysis decision system was successfully applied in refineries. Integrated ERP, MES, real-time database and other system data can continually follow whole production process and optimize production plan. Through electronic retail statement management system project, sales subsidiaries finished standardization of retail process, management, data and every level of report, acquired service station operation data by one-time and shared by multi-system. This system is an efficient method for supervising and analyzing retail management. Application of electronic sales B/L system was realized in all sales subsidairies.