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氯碱化工:2016年报英文版 下载公告
公告日期:2017-08-28
2016 Annual Report
Company code: 600618 900908                Short name of the Company: SCAC Chlor-Alkali B share
       Shanghai Chlor-Alkali Chemical Co., Ltd.
                 2016 Annual Report
                                          Important Notice
I.     The Board of Directors, the Supervisory Committee, Directors, Supervisors and senior
       executives of the Company ensure that the content of this Annual Report is true, accurate and
       integrative, not having any false statement, misleading representation or significant omission,
       and will take joint and several legal responsibilities for the Report.
II.    All the Directors of the Company attended the Board meeting.
III.    BDO China Shu Lun Pan Certified Public Accountants LLP (special ordinary partnership)
       issued an auditor's report with standard and unqualified opinion for the Company.
IV. Mr. Huang Dailie, the principal of the Company, Mr. Zhang Weimin, the principal in charge
       of accounting of the Company, and Mr. Lai Yonghua, the head of accounting department
       (accounting officer) declare to guarantee the truth, accuracy and integrity of the financial
       report carried in this Annual Report.
V.      The profit distribution preplan or the common reserves capitalizing preplan during the
       reporting period reviewed by the board of directors
       According to the 2016 annual financial audit report issued by BDO China Shu Lun Pan Certified
Public Accountants LLP engaged by the Company, in 2016 the net profit of the parent company was
RMB -320,466,343.92 Yuan and the undistributed profit at beginning of the year was RMB
-614,936,506.51 Yuan, and the profit available for distribution at end of the year was RMB
-935,402,850.43 Yuan. Therefore, the Company had no capability of cash dividend or common reserves
capitalization.
VI.     Risk disclaimer of forward-looking statements
√Applicable □Not applicable
The future plan or other forward looking statement included in this Report shall not constitute the
Company's substantial commitment to the investors, and we remind the investors to notice to the
investment risks.
                                                   1 / 95
                                       2016 Annual Report
VII. Is there any non-operational fund occupation by the controlling shareholder or the related
      parties?
No
VIII. Does the Company provide the outward guarantees in breach of the stipulated
      decision-making process?
No
IX.      Notice on important risks
√Applicable □Not applicable
The company has described the related potential risks in this report. Please refer to the
contents concerning the risk factors that the Company may face in the future development
in Section IV Discussion and Analysis of the Business.
X.    Other
□Applicable √Not applicable
                                             2 / 95
                                                          2016 Annual Report
Contents
Section I      Paraphrase ........................................................................................................................... 4
Section II     Company Profile and Main Financial indexes .................................................................... 5
Section III    Summary on the Company's Business ................................................................................ 8
Section IV     Discussion and Analysis of the Business .......................................................................... 11
Section V      Major Events ..................................................................................................................... 34
Section VI     Changes of Ordinary Shares and Particulars of Shareholders ........................................... 46
Section VII    Particulars of Preferred Shares .......................................................................................... 50
Section VIII   Particulars of the Directors, Supervisors, Senior Executives and Staff Members ............. 51
Section IX     Company Governance ....................................................................................................... 60
Section X      Particulars of the Company’s Bonds ................................................................................. 64
Section XI     Financial Report ................................................................................................................ 65
 Section XII Documents For Reference
                                                                   3 / 95
                                              2016 Annual Report
                                    Section I Paraphrase
I.     Paraphrase
In this Report, except otherwise indicated, these words and expressions shall have the meanings as
follows:
Paraphrase for generally-used expressions
CSRC                                  means     China Securities Regulatory Commission
SSRB                                  means     Shanghai Regulatory Bureau of China Securities Regulatory
                                                Commission
Huayi Group                         means       Shanghai Huayi (Group) Company
The Company, Company,          or   means       Shanghai Chlor-Alkali Chemical Co., Ltd.
Chlor-Alkali Chemical
Sodium hydroxide                    means       Molecular formula: NaOH; a strong soluble alkali. Sodium
                                                hydroxide is easy to be solved into water, has strong
                                                alkalinity, and can supply Na+ ion. These properties make it
                                                used widely in the industries such as soap-making, textile
                                                industry, printing and dyeing, blanching, papermaking,
                                                petroleum refining, metallurgy and other chemical industries.
Chlorine                            means       Molecular formula: Cl2. As an important chemical raw
                                                material, chlorine gas is widely used in the industries such as
                                                papermaking, printing and dyeing, pigment, bleaching
                                                powder, textile industry, chemical fiber, grease petroleum,
                                                rubber, plastic, pharmacy, disinfection, agricultural pesticide,
                                                metallurgy and electronic industry.
EDC                                 means       Ethylene dichloride. Achromatic or yellowish transparent
                                                liquid with specific gravity of about 1.26 and odor similar to
                                                chloroform, insoluble in water, dissolve in ethyl alcohol and
                                                ethyl ether. Mainly used as the solvent for wax, fat and
                                                rubber, and also used in producing vinyl chloride and
                                                polycarbonate.
EPVC, paste resin                   means       Paste resin. The Company's production for paste resin mainly
                                                adopts two processes, mixing method and seed emulsion
                                                polymerization, and the paste resin is mainly used in the
                                                products such as the artificial leather, floor leather, wall
                                                paper, toy and bottle cap.
TPVC                                means       Special resin. The special resin produced by the Company is
                                                mainly the customer specially-used material, the medical
                                                resin with high polymeric level such as plasma bag, infusion
                                                tube and the seal with high elasticity and the resin specially
                                                used for primary coating in automobiles.
CPVC                                means       Chlorinated polyvinyl chloride. Mainly used in various pipes
                                                with different caliber and the related fittings such as elbow
                                                and T-joint, the valve body and the wig.
SLIC                                means       Shanghai Lianheng Isocyanate Co., Ltd
SBPC                                means       Shanghai BASF Polyurethane Co., Ltd
                                                    4 / 95
                                          2016 Annual Report
            Section II Company Profile and Main Financial indexes
I. Company information
 Chinese name of the Company            上海氯碱化工股份有限公司
 Short form                             氯碱化工
 English name of the Company            SHANGHAI CHLOR-ALKALI CHEMICAL CO.,LTD.
 Abbreviation                           SCAC
 Legal representative of the Company    Mr. Huang Dailie
II. Contact information
                              Secretary of the Board of Directors        Securities representative
 Name                         Dong Yan                               Chen Lihua
 Contact address              No. 4747 Longwu Rd., Shanghai          No. 4747 Longwu Rd., Shanghai
 Tel.                         021-23533113                           021-64342640
 Fax                          021-64340817                           021-64340817
 E-mail                       dy@scacc.com                           chenlihua@scacc.com
III. Basic information
 Registered address of the Company                    No. 4747 and 4800 Longwu Rd., Shanghai
 Zip code of registered address
 Business address of the Company                      No. 4747 Longwu Rd., Shanghai
 Zip code of business address of the Company
 Website                                              www.scacc.com
 E-mail                                               dshmss@scacc.com
IV. Information disclosure and filing site
Newspapers for information disclosure selected   China Securities News, Shanghai Securities News,
by the Company                                   Securities Post and Hong Kong Commercial Daily
Website appointed by China Securities            www.sse.com.cn
Regulatory Commission for carrying annual
report
Site for filing annual report                    No. 4747 Longwu Rd., Shanghai
V.   The Company's share
                                        The Company's share
     Type of share      Stock exchange for listing      Share name                  Share code
                                of share
A-share                Shanghai Stock Exchange Chlor-Alkali Chemical
B-share                Shanghai Stock Exchange Chlor-Alkali B Share
VI. Other relevant information
                         Name                             BDO China Shu Lun Pan Certified Public
                                                          Accountants LLP
Public accounting firm
                            Business address              4th Floor, New Huangpu Financial Plaza,
engaged by the Company
                                                          No.61, East Nanjing Rd., Shanghai, China
(domestic)
                            Name of the accountant        Gu Xuefeng, Chen Luying
                            for signing
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                                              2016 Annual Report
VII. Main accounting data and financial indexes of the last 3 years
(I) Main accounting data
                                                                                     Unit: Yuan Currency: RMB
                                                                                  Increase or
                                                                                 decrease than
   Main accounting data               2016                        2015
                                                                                same period of
                                                                                 last year (%)
Operating income                6,754,397,061.69     6,170,874,223.67                 9.46        7,015,409,267.56
Net profit attributable to
shareholders of the listed      -328,091,761.80           95,615,030.34            -443.14         -592,502,499.95
Company
Net profit attributable to
shareholders       of     the
                                  -72,743,416.16         -31,416,638.28             N.A.           -262,177,332.00
Company,                after
non-recurring profit and loss
Net    cash     flow    from
                                488,856,761.24           305,852,432.45             59.83          -29,059,999.83
operating activities
                                  At the end of           At the end of          Increase or        At the end of
                                      2016                    2015              decrease (%)
Net assets attributable to
shareholders of the listed      1,941,720,787.56     2,261,545,045.54               -14.14        2,164,655,507.39
Company
Total assets                    4,489,616,046.06     4,847,854,403.79               -7.39         5,754,717,626.22
(II) Main financial indexes
                                                                          Increase or decrease than same
         Main financial indexes                   2016            2015
                                                                              period of last year (%)
Basic earnings per share (RMB/share)          -0.2837         0.0827                  -443.05                -0.5124
Diluted earnings per share (RMB/share)        -0.2837         0.0827                  -443.05                -0.5124
Basic     earnings      per    share after
non-recurring       profit      and   loss    -0.0629        -0.0272                  N.A                    -0.2267
(RMB/share)
Return on net assets, weighted average                                    Decrease by 19.92 percentage
                                             -15.6113         4.313                                         -24.4467
(%)                                                                                  points
Return on net assets, weighted average,                                   Decrease by 2.04 percentage
                                              -3.4613        -1.4171                                        -10.8175
after recurrent profit and loss (%)                                                  points
Notes to the main accounting data and financial indexes of the last 3 years before the end of the
reporting period
□Applicable √Not applicable
VIII.     Difference in accounting data under domestic and overseas accounting standards
(I) The difference between net profit and net assets attributable to shareholders of the Company
      between the international accounting standard and Chinese accounting standards
□Applicable √Not applicable
(II) The difference of net profit and net assets attributable to shareholders of the listed Company
     in the financial report synchronously disclosed according to the international accounting
     standards and Chinese accounting standards
□Applicable √Not applicable
(III) Explanation for differences between the international and Chinese accounting standards:
□Applicable √Not applicable
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                                                  2016 Annual Report
IX. Main financial data by quarters in 2016
                                                                                        Unit: Yuan Currency: RMB
                                1st quarter            2nd quarter                 3rd quarter       4th quarter
                              (Jan.-March)             (Apr.-Jun.)                (July-Sept.)      (Oct.-Dec.)
Operating income            1,121,594,645.40        1,996,947,639.96           1,902,126,376.36 1,733,728,399.97
Net profit attributable
to shareholders of the             9,426,009.05          2,908,167.36            -58,655,607.08       -281,770,331.13
listed Company
Net profit attributable
to shareholders of the
listed Company after
                               21,263,550.76            24,316,965.61             4,060,482.46        -122,384,414.99
deducting
non-recurring profit
and loss
Net cash flow from
                              108,726,920.00            94,418,777.05            57,693,400.75        228,017,663.44
operating activities
Note on differences between the data of the quarters and that of the period report disclosed
□Applicable √Not applicable
X. Items of non-recurring profit and loss and amounts
√Applicable □Not applicable
                                                                                      Unit: Yuan Currency: RMB
 Items of non-recurring profit                                    Note (if
                                     Amount of 2016                                Amount of 2015        Amount of 2014
            and loss                                             applicable)
Profit or loss from disposal of           297,935.96                                257,772,690.18           1,111,822.13
non-current assets
Government               subsidy        22,590,620.20     The rest 30% of             41,118,941.72          5,732,560.40
attributable to profit and loss                           the government
of current period, except such                            subsidy        for
government subsidy closely                                industrial
related to the Company's                                  restructuring of
normal business operation,                                Wujing       Base,
meeting the regulation of                                 totally      RMB
national policy and enjoyed                               15,000,000.00
constantly in certain quota or                            Yuan
quantity according to a certain
standard
Profit and loss on the changes          13,928,846.49     Yield from sale of
in fair value of the                                      Zhongyida’s
held-for-trading financial                                shares
assets and liabilities and the
investment yield from the
disposal of the
held-for-trading financial
assets and liabilities and
available-for-sale financial
assets except the valid hedging
business related to the normal
operation business of the
company
Other non-operating revenue              2,120,604.54                                  3,081,055.74          6,572,403.12
and expenditure other than
                                                        7 / 95
                                                     2016 Annual Report
above items
Other profit or loss items                 -297,607,371.13     Compensation for       -174,731,937.80        -343,652,815.90
meeting the definition of                                      personnel
non-recurring profit and loss                                  placement       and
                                                               related loss on
                                                               work       stoppage
                                                               caused           by
                                                               adjustment of the
                                                               industrial
                                                               structure        in
                                                               Wujing Base
Impact of minority interests                  3,119,749.28                                -199,632.57              50,515.48
Impact of income tax                            201,269.02                                  -9,448.67            -139,653.18
             Total                         -255,348,345.64                             127,031,668.60        -330,325,167.95
XI. Items measured by fair value
√Applicable □Not applicable
                                                                                      Unit: Yuan Currency: RMB
                                 Beginning                                     Change in       Impact on the profit
            Item                                     Closing balance
                                  balance                                    current period     of current period
      Salable financial           50,765,875.23          70,138,258.46          19,372,383.23                 344,311.88
           assets
            Total                 50,765,875.23          70,138,258.46          19,372,383.23                 344,311.88
XII. Others
□Applicable √Not applicable
                     Section III            Summary on the Company's Business
I.       Main business, operating mode and industrial status of the Company during the reporting
         period
II.      (1) Main business: The Company mainly produces and sells sodium hydroxide, chlorine, chlorine products,
         polyvinyl chloride plastics resin and the products. Now the Company's annual production capacity for sodium
         hydroxide is 720,000 tons, for ethylene dichloride, 720,000 tons, for liquid chlorine, 600,000 tons, and for paste
         and special resin, 80,000 tons.
III.     (2) Operating mode: The Company makes close cooperation with the international chemical magnate to
         establish an integrated operation mode with completed devices and pipe-line transportation in the shanghai
         chemical industrial park. The integrated industrial industry chain model is an interchange and sharing integrated
         industry chain which mainly takes the ethylene product from SECCO as the flagship product, the chlor-alkali
         product from the Company as the foundation, the refined chemical product such as isocyanate, polyisocyanate
         and polycarbonate from BASF SE, Covestro and American HUNTSMAN as the intermediate, and the refined
         chemical product such as the paint and the adhesive as the end-product. The structure of the specific industry
         chain is described as follows: the Company provides the chlorine and the sodium hydroxide as the raw materials
         to MDI/TDI/PC units in the park area, digest the byproduct hydrochloric acid gas and produce the dichloroethane
         with the ethylene as the raw material and the secondary chlorine. Therefore, the Company built 720000t sodium
         hydroxide unit and 720000t dichloroethane units in the shanghai chemical industrial park as the supporting
         facilities, all of the chlorine liquid produced is basically supplied to the downstream of the shanghai chemical
         industrial park. The chlorine pipeline and sodium hydroxide pipeline partition wall supply mode is adopted in the
         shanghai chemical industrial park to guarantee the stability and safety of the supply and zero the logistics cost.
         The integrated operation mode has enhanced the Company's capability of long-term stable existing and
         development and has also provided guarantee for the downstream customers to obtain stable and reliable
         chlor-alkali products in long period, realizing mutual benefit and win-win. The long-term contract on 10-year's
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                                                   2016 Annual Report
      supply of chlorine by the downstream enterprises in the shanghai chemical industrial park to the Company
      became due in 2016 and the Company initiated the negotiation of the renew of the contract such as SLIC/SBPC
      Contract I, II and III and Covestro Contract I and II in time. Both parties of a new round of 10-year's supply and
      marketing contract upheld the idea of cooperation and win-win and took the growth, relevance and interaction of
      the industry chain into full consideration. Therefore, the profit advantages of the integrated mode of the Company
      continued in the shanghai chemical industrial park.
IV.   (3) Description of industrial status: in 2016, the sodium hydroxide market turned round. Pushed forward by the
      rise of the demand in the downstream and the shortage of the output in the main sodium hydroxide production
      area, the operating factor of the enterprise rose and the price increased. In 2016, the output of the sodium
      hydroxide in China reached up to 39,450,000t, with a net increment of 720000t compared with the 2015 (a new
      increase of 2030000t and a cutting of outdated production capacity of 1310000t). There are totally 158 sodium
      hydroxide producers in china, with a decrease of 5 producers compared with the last year. Although the output of
      sodium hydroxide increased to a certain extent every year, the outdated production capacity was relatively large,
      so the overall production capacity was stable. Due to the average increase in consumption, the average
      industrial operating factor rose from 78% in 2015 to 83% in 2016 and the industrial concentration ratio increased.
      Affected by the factors such as the supply-side reform for cutting industrial overcapacity, the operating factor of
      PVC industry kept the trend of stable rise and the price increased. In 2016, the output of PVC was 23,260,000t,
      with a net reduction of 220,000t compared with the       end of 2015 (a new increase of 890,000t and a cutting of
      outdated production capacity of 1,110,000t). At present, there are 75 PVC producers, with a net reduction of 6
      producers compared with the end of the last year. The output of PVC had been in negative growth for 3 years.
      Since the overall consumption stably grew, the industrial average operating factor rose from 69% in 2015 to 72%
      in 2016   and the industrial concentration ratio rose.
V.  Explanation for significant changes in prime assets of the Company during the reporting
    period
□Applicable √Not applicable
VI. Analysis on the core competitive power in the reporting period
√Applicable □Not applicable
1. Signed a new-round 10-years supply and marketing contracts
Through 10 years'running in the shanghai chemical industrial park by the Company, the
integrated operating mode has fully demonstrated the merits of the cooperative win-win pricing
mechanism. When the Company signs the long-term contract with the downstream enterprises,
the pricing is based on the cost plus the reasonable profit and adjusts the changes in the price
and cost of the main cost factors including electricity, salt, steam, water, labor force and
industrial products. When the price of the raw material or energy rises, for example, the
electricity price rises, the contract price can be adjusted according to the price formula to make
efforts to eliminate the cost rise factors; with the chlorine bringing along the sodium hydroxide,
in sale of the chlorine, the sodium hydroxide is also sold as per a certain ratio at the same time.
The chlorine pipeline and sodium hydroxide pipeline partition wall supply mode is adopted in the
shanghai chemical industrial park to guarantee the stability and safety of the supply and zero
the logistics cost. It establishes the risk compensation mechanism for the execution of the
contracts. In the signing of long-term contracts,various factors were fully considered, for
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                                         2016 Annual Report
example, when the actual amount purchased of the customer is less than the amount carried in
the contract, the Company will be compensated in accordance with the stipulations of the
contract, thus, the risks from the execution of the contract are greatly reduced. At the same time,
based on the equity of the contract, when the commodity quantity supplied by the Company to
the downstream enterprises is lower than the quantity specified by the contract, the Company
will also compensate the downstream enterprises to guarantee the stable supply between and
by both parties. The integrated operation mode has enhanced the Company's capability of
long-term stable existing and development and has also provided guarantee for the
downstream customers to obtain stable and reliable chlor-alkali products in long period,
realizing mutual benefit and win-win. The long-term contract on 10-year's supply of chlorine by
the downstream enterprises in the shanghai chemical industrial park to the Company expired in
2016 and the Company initiated the negotiation of the renew of the contract such as
SLIC/SBPC Contract I, II and III and SECCO Contract I and II in time. Both parties upheld the
idea of cooperation and win-win and took the growth, relevance and interaction of the industry
chain into full consideration. On Dec. 4, 2016, the company signed the Contract on Supply of
Chlorine/Sodium Hydroxide with Covestro Polymer (China) Co., Ltd (the proposal of this
contract was reviewed and approved by the 6th meeting of the 9th board of directors and was
announced on Dec. 5, 2016) and had reached an agreement on the main clauses of the supply
contract with SLIC/SBPC and it was expected that the contract would be signed in the first half
year of 2017. Therefore, the Company's profitability predominance due to the integrated
operating mode in the shanghai chemical industrial park can continue to exist.
2. New R&D outcome of chlorine preparation technology, accelerating the
industrialization
In 2016, the advanced chlorine preparation process independently researched and developed
by the state-level technical center of the Company, namely hydrogen chloride to chlorine
through catalysis and oxidation passed the review of the experts from the industry and the
university; meanwhile, the Company optimized and perfected the feasibility study report on the
process package of hydrogen chloride to chlorine through catalysis and oxidation and the
industrialized project, laid a solid foundation of the industrialization of the hydrogen chloride to
chlorine through oxidation and accelerated the building of the circular economy industry chain in
the shanghai chemical industrial park.
3. Reserving a batch of new technology R&D outcomes
The Company independently researched and developed the chlorinated PVC by water phase
process and accomplished the research and application development of low-cost chlorinated
PVC resin and the formula for chlorinated PVC granular material for the particular customers in
2016, as a result, it seriated and customized the chlorinated PVC resin products.
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                                                    2016 Annual Report
4. Having a powerful marketing platform
As the enterprise exporting sodium hydroxide earliest in China, the Company owns a powerful
international marketing platform and import base for raw salt and this means it is of distinct
advance predominance. With respect to domestic trade, the Company is at the middle and
down stream of the Yangtze River, the most developed region in China, with the best
consumption and logistics. In 2016, the Company established the trading company to build an
integrated supply and marketing platform and achieve the “supply and marketing linkage,
product linkage and the linkage of the primary business and the trade”. The establishment of the
trading company is the need for achieving the industrial upgrading, transformation of growth
mode and secondary innovation and upgrading of the profit mode of the company.
                   Section IV Discussion and Analysis of the Business
I. Discussion and Analysis on the Management
In the first year of the 13th five-year plan, the chlor-alkali industry entered the critical period of industrial restructuring
and growth mode transformation. A series of changes had taken place in the industrial operation characteristics: the
industrial scale expanded continuously, but the speed of growth slowed down; the industrial concentration ratio rose
and the industrial layout became reasonable gradually; the market pattern changed continuously and the trading mode
was diversified; the production process was continuously optimized and the energy-saving and environmental
protection level was continuously improved. Viewed from the operating environment of the Company, the domestic
overall economic growth speed slowed down, the traditional manufacturing industry stepped into the recession cycle,
especially, the manufacturing industry of bulk commodity with severe competition entered into the period of cold winter.
Although the chlor-alkali product market in the second half year of 2016 turned a little better, the overall situation in the
whole year was still severe, the price of ethylene and EDC decreased greatly compared with the annual budget.
Confronted with the market fluctuation and actual difficulties, the Company encompassed the strategic target of
“innovation, upgrading and transformation” proposed in the 13th five-year plan, persisted in the working requirements
of “adjustment and cost cutting for survival and transformation and development for the future”, focused on cost
cutting and benefit increase, settlement and reemployment and going global strategy and preliminarily achieved the
established operation objectives.
 (I) Pushing forward the arrangement and implementation of the strategy of the Company in an
all-round way
1. Accomplishing the strategic adjustment of Wujing Zone in an all-round way. According to the relevant policy against
the industrial layout and industrial restructuring issued by Shanghai Municipal Government as well as the strategic
planning of the Company for clustering and upgrading, the Company had implemented the adjustment of Wujing Zone
since 2013, shut down the production units in Wujing Zone in order step by step and actively and stably pushed
forward the reduction and reemployment of the employees in the Company. In 2016, the adjustment of Wujing Zone
entered the into the closing phase, the Company shut down all of the CPVC units and the related utilities in Wujing
Base and stably reduced 696 employees according to the specific proposal, indicating the strategic adjustment in
Wujing Zone had accomplished in an all-round way. The success of in strategic adjustment in Wujing Zone as
scheduled was an important step for the strategic development of the Company and was of milestone significance for
the transformation and development of the Company.
2. Accelerating the cluster and development of the shanghai chemical industrial park. The company further transferred
the production and operation center of gravity to Caojing Chemical Zone in an all-round way strengthen the industrial
layout in the shanghai chemical industrial park and lay a solid foundation for the great-leap-forward development
based on the shanghai chemical industrial park in the future. (1) Quickening the progress of the projects in the
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                                                  2016 Annual Report
chemical zone. Firstly, the Company independently researched and developed the chlorine hydride to chlorine through
oxidation, formally launched the preparation of the feasibility study report on this project and accelerated the
industrialization progress of the project of 100000t/a chlorine hydride to chloride through oxidation. Secondly, the
chlorinated polyvinyl chloride project would be settled in Tianyuan Chemical Plant in the chemical zone. It was
originally planned to be settled in the land for the former paste resin unit on Plot D4 in Shanghai Chemical Zone. In
2016, 3rd board meeting of 9th board of directors reviewed and approved Proposal for Alteration of the Contents
Concerning 40000t/a High Performance Perchlorinated Polyvinyl Chloride Project and decided to invest in and build
this project in Tianyuan Chemical Plant to further optimize the investment in this project. Now the project is being
optimized continuously. (2) Strengthening the position of the important chloride supplier in the chemical zone. The
Company scientifically studied and judged the demand for chloride of the downstream enterprises in the chemical
zone in the coming years, did well in balance and assessment of the chloride resource in advance, dealt with the
challenges from the supply of the chloride resource in time and satisfied the demand at the downstream to the utmost
extent. In view that the long-term contract on supply of chloride from the downstream enterprises in the chemical zone
to the Company was due in 2016, it launched the negotiation of the renew of the contracts such as SLIC/SBPC
Contract I, II and III and Covestro Contract I and II. It regarded “business negotiation of major contracts” as the key
management project, strengthened the negotiation with the partners and fully accelerated the negotiation process.
Through many rounds of negotiation and communication between both parties, the Company signed the contract on
supply of chloride/sodium hydroxide with Covestro Polymer (China) Co., Ltd on Dec. 4, 2016 (the proposal for the
contract was reviewed and approved by the 6th board meeting of the 9 th board of directors and was announced on
Dec. 5, 2016) and it was expected the supply contract with SLIC/SBPC would be signed in the first half year of 2017.
3. Accelerating the step of \"going global\". In 2016, the Company took a material step in the “going global” strategy
and the 5th board meeting of the 9th board of directors of the Company reviewed and approved the proposal for
Investment in Inner Mongolia Junzheng Tianyuan Chemical Co., Ltd on Oct. 28, 2016. According to the proposal,
Inner Mongolia Junzheng Tianyuan Chemical Co., Ltd would be jointly invested and incorporated as per the stock ratio
of Chlor-Alkali Company 40% and Junzheng Energy 60% and the joint venture would plan and build the project of
200000t/a EPVC with seed emulsion process. This project would be implemented by phases and the project (phase I)
planned to put 100000t into production. This joint venture accomplished the industrial and commercial registration on
Jan. 10, 2017 and it was expected that it would be put into production at the end of 2017. The cooperation between
Chlor-Alkali Company and Junzheng Energy could make use of the advantages in local rich resources and rely on the
existing production and living facilities of Junzheng Energy to achieve the resources complementarities and upstream
and downstream linkage as well as combine the advantages in technology and brand with the ones in resources and
cost, as a result, it could effectively reduce the production cost and raise the product competitiveness. This project
conformed to the development planning of “trying for the industrial transfer to other appropriate regions in China,
relying on the more advantageous policy environment, more complete supporting facilities and cheaper cost input,
strengthening the market competitiveness of the products and building the industrial zone with scale effects and
competitiveness advantages” and would become an important step towards the implementation of the “going global”
strategy.
 (II) Optimizing the operation and management of the Company in an all-round way
1. Enhancing HSE management and ensuring safety. The Company adhered to the principle of \"building the defense
line firmly, holding the bottom line and consolidating the line\", advocated the safety culture of \"self awareness,
sensitivity and working efficiently\" and enhanced continuously HSE management level to provide powerful guarantee
for its adjustment and development. With propaganda and implementation of the new Production Safety Law and
Environmental Protection Law as the main thread, persisting in the principle that “CPC committees and governments
are held accountable, officials take responsibility for workplace safety in performing their duties, and those who fail to
uphold safety standards are held accountable”, strengthening the consciousness of “bottom line”, “red line” and
                                                         12 / 95
                                                  2016 Annual Report
“high voltage line” for safety and environmental protection and ensuring the intrinsic safety of HSE. (1) Defining the
safety responsibility. Carrying out the activity of “my area in the charge of me and my work in the charge of me” and
continuously improving the safety consciousness and the sense of responsibility of the employees. Implementing HSE
responsibility system and signing the HSE responsibility agreement and the letter of commitment in layers, with the
contract signing ratio of 100%. In the context of institutional adjustment and reduction in workforce, adjusting HSE
working organ in time, establishing Safety Committee of Caojing Zone and guaranteeing the implementation of HSE
responsibility. (2) Strengthening safety assessment. Assessing each department and each employee every month.
Preparing Detailed Rules for Assessment of Comprehensive Bonus of HSE for Employees in the Company and
including the implementation of the production safety responsibility into the comprehensive management and
assessment system for the employees in the company for uniform assessment. Revising Detailed Rules for
Assessment of Contractors, aiming at the problems in the management of the contractor in the overhaul, studying the
assessment, rewards and punishment scheme for the contractors and preparing Standard of Chlor-Alkali Company for
Safety Assessment of Construction by the Contractor. (3) Implementing and urging the rectification and improvement.
Aiming at some individual minor accident, formulating and launching the measures for rectification and improvement in
time, strengthening the management of the key equipment and the major hazard sources, putting the management
into place, contracting the management to the specific person, improving the routine patrol quality and guaranteeing
the safety facilities in good condition. Amending the scheme for dumping of the chloride liquid storage tank,
guaranteeing the dumping in the abnormal condition in the controllable safety state, strengthening the emergency
drilling, upgrading the emergency drilling of the leakage of the chloride liquid to the height at the group level and keep
the information unblocked among the related persons.
    2. Flexibly adjusting the sales system. (1) Integrating the marketing system, establishing the trade company and
building the efficient business platform. The establishment of the trade company was required for the industrial
upgrading and the secondary innovation and upgrading of the profit mode of the Company. Through the modern
marketing system more closely to the market, on one hand, it could achieve the proper linkage of the purchase and
sale of the self-operating products, do well in the management of two cores including purchase and sale and improve
the market competitiveness of the products; on the other hand, it would make full use of the new mechanism, motivate
the spirit of struggle to expand the market so as to transform the growth mode and cultivate the new profit increase
point. (2) Aiming at the market trend and optimizing the sale of the products. Firstly, optimizing the sale of EDC and
acid absorbent. Viewed from the profit of the chloride per t, the loss of the acid absorbent product was less than the
one of EDC product. In 2016, the Company greatly increased the sales volume of acid absorbent and optimized the
sales radius as well, and expanded the market of East China all out. Compared with the annual budget, the sales
volume of the acid absorbent increased 120000t and the loss was reduced by RMB 19,720,000.00 Yuan in the whole
year. Secondly, optimizing the sales structure of the sodium hydroxide. In 2016, the benefit of 32% alkali was better
than the one of 50% alkali sold at home and abroad. According to the benefit optimization principle, the Company
dynamically adjusted the variety structure of the sodium hydroxide and the regional structure, produced and sold more
32% alkali, increased the sales proportion in Shanghai all out, as a result, the sales proportion of 32% alkali in
Shanghai in 2016 increased remarkably, with an increase of 7% on year-on-year basis. (3) Active communication to
raise the execution rate of the contracts by the downstream enterprises. In 2016, based on the active communication
with the downstream enterprises, the Company closely followed up the execution of the contracts with the downstream
enterprises and raised the execution rate of the contract as much as possible to increase the profit of the Company.
The quantity of chloride received by the downstream enterprises in 2016 was 599,600t, reaching a record high, with an
increase of 23,000t on year-on-year basis.
3. Scientifically strengthening operation and management. (1) Deeply excavating the potential, reducing the cost and
increasing the benefit. The Company strictly implemented the budget, optimized the capital structure and the sales
structure, resulting in the reduction in three charges by 23% on year-on-year basis. Meanwhile, with respect to the
production, the Company strictly controlled the materials and energy consumption, enhanced the management,
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                                                  2016 Annual Report
reduced the production fluctuation and optimized the use structure of the raw materials, as a result, the manufacturing
expense fell down on year-on-year basis. (2) Adopting the flat management mode. The production system further
adopted the flat management mode, simplified the management layers, quickened the rate of the information flow,
improved the decision-making efficiency, implemented the refined production and achieved the remarkable
improvement of the cost and operation profit with the minimum input. The main purpose of the refined production was
to make the quickest response with the best quality, the lowest cost and the highest efficiency. With respect to the
organizational structure, it reduced the non-direct production layer, adopted the flat production system and quickly
responded to the market. The production management department was shifted to the economic operation department,
Tianyuan Chemical Plant and Huasheng Chemical Plant were cancelled, sodium hydroxide unit, oxidative chlorination
unit, resin unit and utilities were established and PVC plant was cancelled. Economic operation department, HSE
department and arm safeguard department directly managed them, in this way, they uniformly implemented the
production and operation function together with the four units.
II. Main operating status in the reporting period
In the reporting period, the Company realized the operating income of RMB 6,754,397,100Yuan,
increasing by RMB 583,522,800Yuan or 9.46% year on year, the gross profit of RMB -334,813,600
Yuan, decreasing by RMB 444,375,500 Yuan year on year, and the net profit attributable to shareholders
of the listed Company of RMB -328,091,800 Yuan, decreasing by RMB 423,706,800 Yuan year on year.
(I) Analysis of the main business
       Analysis of Changes in Relevant Items in Income Statement and Cash Flow Statement
                                                                  Unit: Yuan Currency: RMB
                  Item                           Current period            Amount in the same
                                                                                                        Change ratio (%)
                                                    amount                  period of last year
Operating income                                 6,754,397,061.69             6,170,874,223.67                       9.46
Operating cost                                   6,128,517,218.57             5,559,439,778.97                      10.24
Selling cost                                       184,329,793.95               199,911,085.12                      -7.79
Management expenses                                480,214,277.58               402,196,032.57                      19.40
Financial expenses                                  74,994,167.59               140,436,053.89                     -46.60
Net cash flow from operating activities            488,856,761.24               305,852,432.45                      59.83
Net cash flow from investment                      -32,240,748.36               462,369,445.87                    -106.97
activities
Net cash flow from financing activities           -266,227,416.76              -930,062,240.97            Not applicable
R&D expenditure                                     22,218,163.42                36,893,630.81                     -39.78
1.        Analysis on revenue and cost
√Applicable □Not applicable
(1).   Main business divided by sector, product and area
                                                                                       Unit: Yuan        Currency: RMB
                                                    Main business by sector
                                                                                           Increase
                                                                             Increase or
                                                                                              or
                                                                             decrease of
                                                                                           decrease
                                                                Gross         operating                    Increase or decrease of
                                                                                              of
   Sector       Operating income         Operating cost         profit         income                       gross profit rate than
                                                                                           operating
                                                               rate (%)          than                         previous yea (%)
                                                                                           cost than
                                                                              previous
                                                                                           previous
                                                                              year (%)
                                                                                           year (%)
Industry          3,825,805,128.74       3,478,929,132.02           9.07           -7.84        -2.18             Decrease by 5.26
                                                                                                                  percentage points
Constructio          52,384,954.98          50,855,935.65           2.92          57.02        71.53              Decrease by 8.21
n                                                                                                                 percentage points
                                                          14 / 95
                                             2016 Annual Report
Trade           2,834,742,551.50     2,557,264,284.04          9.79        46.13        32.35             Increase by 9.39
income                                                                                                   percentage points
Total           6,712,932,635.22     6,087,049,451.71          9.32         9.61        10.30            Decrease by 0.58
                                                                                                         percentage points
                                              Main business by product
                                                                     Increase or     Increase or
                                                                     decrease of     decrease of
                                                         Gross                                      Increase or decrease of
                                                                      operating       operating
  Product      Operating income      Operating cost      profit                                      gross profit rate than
                                                                    income than       cost than
                                                        rate (%)                                       previous yea (%)
                                                                   previous year      previous
                                                                         (%)          year (%)
PVC               538,275,093.61      557,330,514.67        -3.54            8.76           -3.11        Increase by 12.69
                                                                                                         percentage points
Sodium          1,377,470,326.87       917,255,823.14        33.41            7.38         -2.50          Increase by 6.74
hydroxide                                                                                                percentage points
Chlorine        2,144,285,877.31     2,005,608,343.01          6.47          -0.14          5.79          Decrease by 5.24
products                                                                                                 percentage points
Others          2,652,901,337.43     2,606,854,770.89          1.74          20.62         23.75          Decrease by 2.48
                                                                                                         percentage points
Total           6,712,932,635.22     6,087,049,451.71          9.32           9.61         10.30          Decrease by 0.58
                                                                                                         percentage points
                                                Main business by area
                                                                       Increase or   Increase or
                                                             Gross     decrease of   decrease of
                                                                                                    Increase or decrease of
                                                             profit     operating     operating
  Area       Operating income         Operating cost                                                 gross profit rate than
                                                              rate    income than     cost than
                                                                                                       previous yea (%)
                                                              (%)       previous      previous
                                                                        year (%)      year (%)
China           6,436,295,912.76       5,829,905,849.66        9.42          10.56          11.94        Decrease by 1.11
                                                                                                         percentage points
Other            276,636,722.46          257,143,602.05        7.05          -8.75        -17.11          Increase by 9.37
countries                                                                                                percentage points
Total           6,712,932,635.22       6,087,049,451.71        9.32          9.61          10.30         Decrease by 0.58
                                                                                                         percentage points
Explanation for the main business by industries, products and regions
√Applicable □Not applicable
      1) The Company established the “double-core driven” business development mode and realized the
shift from “production and manufacture” to “manufacture+ service trade”. The service trade has rapidly
developed in the past two years, kept relatively high share in the market, quickened the transformation of
the trade mode and gradually built itself a trade company with relatively strong competitiveness in
purchase of the raw materials and sale of the product;
      2) The Company, based on the platform of Shanghai Chemical Products Trading Market and the
platform of the trade company, expanded the business in the primary products and the raw materials,
further expanded the industry chain of the service trade, made use of the information and advantages in
the purchase of the existing primary raw materials including ethylene and vinyl chloride and intensified
the market development of the varieties such as polyethylene to gradually prompt the Company to shift
to the service trade of the varieties in the related industry chain from the main single raw materials
(ethylene and vinyl chloride) so as to further strengthen the discourse right of the Company in the
primary products and the raw materials market. In this stage, the expansion range of polyethylene
business mainly depends on the users in Zhejiang, Jiangsu, Shandong and so on.
      3) Continuously making full use of the opportunity of the established ethylene tank project, actively
expanding ethylene trade market and seeking for the trade partners in many ways. During this reporting
period, the ethylene trade business mainly concentrates on the main consumption region of the ethylene,
including Shanghai, Jiangsu and Zhejiang, therefore, the trade business of the ethylene mainly depends
on the users in Zhejiang, Jiangsu and Shanghai. Considering the safety factors such as the capital, the
ethylene customers of Shanghai Chlor-Alkali are selected according to the standard of stable channel,
capital safety and a certain consumption;
      4) Selection of settlement and trade mode: in this stage, this Company mainly concentrates on the
expansion of the market and the business varieties and guarantees the safety of the capital, as a result, as
to the trade mode, it firstly selects the downstream customers and determines the sales intent according
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                                             2016 Annual Report
to the quantity and the price, then purchases the products from the upstream suppliers at a proper price,
so the form of settlement mainly adopts the payment before delivery.
(2). Analysis on production and sale
√Applicable □Not applicable
                                                                                     Increase or      Increase or
                                                                    Increase or
                                     Sales                                           decrease of      decrease of
                        Output                      Stock           decrease of
                                    volume                                          sales volume         stock
  Main products         ('0000                     balance          output than
                                    ('0000                                               than        balance than
                         tons)                  ('0000 tons)         previous
                                     tons)                                             previous        previous
                                                                     year (%)
                                                                                       year (%)        year (%)
PVC product           6.875       7.215        0.217               -10.12           -5.98           -65.69
Sodium hydroxide      101.358     67.981       0.928               47.36            2.61            -39.07
product
Chlorine product      140.622     144.667      3.727               -1.60            10.04           -54.20
In 2016, the basic chemical industry turned round, the price of the products rose, the market sale was
good and the stock size of the products decreased.
(3). Cost analysis
                                                                                           Unit: Yuan
                                                 By sector
                                                      Ratio in                                 Ratio
                  Items of cost   Amount in current                  Amount in the same                   Change
   Sector                                              total                                  in total
                    structure         period                          period of last year                ratio (%)
                                                     cost (%)                                   (%)
Industry       Direct              2,903,828,396.6      47.71              2,860,008,053.66     51.83         1.53
               material
               Direct labor          77,872,144.56          1.28             96,854,436.74       1.76        -19.60
               Power                199,367,318.61          3.28            244,563,736.73       4.43        -18.48
               Manufacture          297,861,272.25          4.89            355,203,896.99       6.44        -16.14
               cost
               Total               3,478,929,132.02      57.15             3,556,630,124.12    64.45          -2.18
Construction   Direct                  1,832,355.52       0.03                 2,220,503.52     0.04         -17.48
               material
               Direct labor            1,745,672.28         0.03              3,688,472.71       0.07        -52.67
               Manufacture            47,277,907.85         0.78             23,738,840.58       0.43         99.16
               cost
               Total                  50,855,935.65      0.84                 29,647,816.81     0.54         71.53
Trade income   Purchase cost       2,557,264,384.04     42.01              1,932,174,066.11    35.01         32.35
                                                By product
                                                     Ratio in                                  Ratio
                  Items of cost   Amount in current                  Amount in the same                   Change
  Product                                              total                                  in total
                    structure          period                         period of last year                ratio (%)
                                                     cost (%)                                   (%)
PVC            Direct                387,186,822.81      6.36               382,641,803.88        6.93        1.19
               material
               Direct labor           16,674,223.52         0.27             17,460,930.59       0.32         -4.51
               Power                  82,209,949.13         1.35             95,674,768.66       1.73        -14.07
               Manufacture            71,259,519.21         1.17             79,451,927.95       1.44        -10.31
               cost
               Total                557,330,514.67        9.16              575,229,431.08     10.42          -3.11
Sodium         Direct               760,390,751.28       12.49              729,098,699.59     13.21           4.29
hydroxide      material
               Direct labor           16,548,439.55         0.27             15,627,153.42       0.28          5.90
               Power                  69,768,678.75         1.15             94,463,749.19       1.71        -26.14
               Manufacture            70,547,953.56         1.16            101,539,246.32       1.84        -30.52
               cost
               Total                 917,255,823.14      15.07               940,728,848.52    17.05          -2.50
Chlorine       Direct              1,792,188,346.51      29.44             1,690,759,223.40    30.64           6.00
product        material
                                                  16 / 95
                                             2016 Annual Report
                Direct labor         35,580,679.00            0.58      32,201,251.85       0.58      10.49
                Power                50,674,330.48            0.83      43,801,478.39       0.79      15.69
                Manufacture         127,164,987.02            2.09     129,158,563.36       2.34      -1.54
                cost
                Total             2,005,608,343.01        32.95       1,895,920,517.00    34.36        5.79
Explanation for other situation of cost analysis
□Applicable √Not applicable
(4). Main customers and main suppliers
√Applicable □Not applicable
     The amount of sales of the first five customers was RMB 2,378,062,500.00 Yuan, accounting for
35.19% of the annual total sales, in which the amount of sales of the related parties of the first five
customers was RMB 0.00 Yuan, accounting for 0% of the annual total sales.
                                                                             Unit: Yuan Currency: RMB
 No.                  Customer                     Amount of sales     Percent in annual total sales (%)
  1     Covestro                                    702,663,341.07                                 10.40
  2     Shanghai Daokuan Trade Co., Ltd             513,655,222.22                                  7.60
  3     SLIC                                        473,681,459.22                                  7.01
  4     BASF                                        350,184,633.60                                  5.18
    Qingdao Shengtaifeng International
  5     Trade Co., Ltd                               337,877,863.25                                 5.00
                       Total                       2,378,062,519.36                                35.19
     The amount of procurement of the first five suppliers was RMB 3,271,360,400.00 Yuan,
accounting for 59.79% of the annual total amount of procurement, in which the one of the related parties
of the first five suppliers was RMB 0.00 Yuan, accounting for 0% of the annual total amount of
procurement.
                                                                         Unit: Yuan Currency: RMB
                                                   Amount of         Percent in annual total amount
 No.                  Supplier                    procurement             of procurement (%)
    State Grid Shanghai Municipal
  1     Electric Power Company                   1,102,666,883.85                              20.16
    Shanghai SECCO Petrochemical
2       Company Limited                            864,644,799.54                              15.80
    Shandong Zhongxin Industry Trade
  3     Co., Ltd                                   746,228,292.31                              13.64
    Qingdao      Free     Trade    Zone
  4     Zhongyan Trade Co., Ltd                    322,971,615.38                               5.90
  5     Mitsubishi Corporation                     234,848,784.08                               4.29
                        Total                    3,271,360,375.16                              59.79
Other explanations
1. Covestro is an important downstream customer of the chemical zone and the Company supplies the
chemical products such as sodium hydroxide and chloride liquid to it.
2. State Grid Shanghai Municipal Electric Power Company is the main electric power supplier for the
Company to produce the main product sodium hydroxide.
3. Shanghai SECCO Petrochemical Company Limited is the supplier of the main raw materials for the
Company to produce the main product dichloroethane.
4. Shandong Zhongxin Industry Trade Co., Ltd is the supplier of polyethylene for the Company to
expand the market and carry out the main trade business.
                                                    17 / 95
                                              2016 Annual Report
2.        Expenses
√Applicable □Not applicable
                                                           Unit: Yuan Currency: RMB
                                                                      Year-on-year
                                  2016
          Item                                                    increase/decrease (%)
Selling cost                 184,329,793.95     199,911,085.12                      -7.79
Management expenses          480,214,277.58     402,196,032.57                     19.40
Financial expenses            74,994,167.59     140,436,053.89                    -46.60
Income tax expense             1,713,353.49       4,672,427.26                    -63.33
Analysis of the reason for changes in the expenses:
1) The management expenses increased by 19.4% year on year, mainly caused by significant increase of
employee’s dismissal benefit than previous year.
2) The financial expenses decreased by 46.6% year on year, mainly caused by the reduction in interest
expenditure due to the optimization of loan portfolio and reduction in loan scale in this period.
3.        R&D investment
Details of R&D investment
√Applicable □Not applicable
                                                                                                 Unit: Yuan
Expense investment in R&D in current period                                                   17,060,292.79
Capitalized investment in R&D in current period                                                5,157,870.63
Total of investment in R&D                                                                    22,218,163.42
Ratio of total investment in R&D in the operating income (%)                                           0.33
Number of R&D personnel in the Company
Ratio of R&D personnel in total employees of the Company (%)                                          28.85
Ratio of capitalized investment in R&D (%)                                                            23.21
Notes
√Applicable □Not applicable
     In 2016, the Company still continued to focus on the advanced chlorine making process and new
material technique to make R&D. The main projects included “the improvement on chlorine making
with hydrogen chloride catalytic oxidation”, “inner quality tracking and process improvement of
chlorinated polyvinyl chloride resin” and “the development and application of the power-saving
technology for electrolyzer”. For the project of “the improvement on chlorine making with hydrogen
chloride catalytic oxidation”, the Company, based on the completed process package for the
industrialized unit with the annual capacity of 100,000 tons, completed the optimization of the first
generation of catalyst, determined the technical indexes of the catalyst and magnified the process
parameter of preparation, established the enterprise standard of catalyst; the evaluation unit for the single
column run of Huasheng Chemical Plant was established and the preparations for the startup was made;
the research on the process of the offgas absorption liquid was made and 100000t/a industrialized
process package was further perfected. For the project of “inner quality tracking and process
improvement of the chlorinated polyvinyl chloride resin”, the Company conducted quality tracing for
chlorinated polyvinyl chloride resin. Comprehensively considering the static thermal stability and
dynamic rheological property as the quality indexes, it analyzed the fluctuation of chlorination process
and the fluctuation among the batches to adjust the chloride flow and the process. Based on the
follow-up and improvement of this project, the static temperature time and the quality product rate of
CPVC resin were risen to above 80%; based on the continuous follow-up, the batches with the quality
defects were retained in the Company and did not come into the market. In this year, good feedback was
get from the customers on CPVC, without any quality complaint. With the stable quality, the sales
                                                   18 / 95
                                             2016 Annual Report
volume rose step by step and the balance of production and marketing was achieved. As to the project of
“development and application of electrolyte tank energy-saving technology”, the electrolyte tank
reconstruction plan was accomplished in 2016. The operation of the unit in the condition of operation
current density of 5.0 KA/㎡, soda concentration of 32% and tank temperature of 90℃ got a very good
effect. In the evaluation, the voltage of the single tank was lower than 2.98V, the power consumption of
the sodium hydroxide per ton was reduced by 140KWH/sodium hydroxide per ton, the power
consumption of 360000t/a unit could be reduced by 50,000,000kWh or so, as a result, based on RMB 0.6
Yuan/KWH, it could save the electricity cost of RMB 30,000,000.00 Yuan, the electric energy saved in
each year was converted into about 16000t standard coal, equivalent to reduction of the emission of
40000t CO2 per year.
4.        Cash flow
√Applicable □Not applicable
                                                                         Unit: Yuan Currency: RMB
                    Item                             2016                 2015           Difference
Net cash flow from operating activities          488,856,761.24 305,852,432.45 183,004,328.79
Net cash flow from investment activities         -32,240,748.36 462,369,445.87 -494,610,194.23
Net cash flow from financing activities        -266,227,416.76 -930,062,240.97 663,834,824.21
Net increase of cash and cash equivalents 193,630,445.62 -162,165,661.15 355,796,106.77
Notes:
1) The increase in net cash flow from operating activities was mainly caused by the great drop of the
stock in trade in this period, resulting in the increase in the net cash flow from the operating activities on
year-on-year basis;
2) The decrease in cash flow from investing activities is mainly caused by the decrease in the cash
inflow due to no equity transfer and sale of buildings in current period.
3) The decrease in net cash flow from financing activities is mainly because the loan returned was
smaller than the outflow of funds in current period.
(II) Note on significant changes in the profit caused by non-main business
√Applicable □Not applicable
The main reasons for the loss of the Company during the reporting period: 1. Provision for impairment.
The provision for impairment of the fixed assets in this period was totally RMB 203,833,414.81 Yuan,
among which: (1) the amount of provision for impairment of paste resin unit in this year was RMB
142,123,801.94 Yuan. The reason for the provision: A. The Company planned to build the 40000t/a
CPVC project, but the original site, namely Plot D4 in the chemical zone was located at No. 168 Yinhe
Road Shanghai Chemical Zone and was adjusted in the planning since the chemical zone carried out the
overall planning of the plot at the north of Central River in the park. Now it is approved for the record
according to Opinion for Record of Shanghai Municipal Enterprise Investment Project by Shanghai
Chemical Zone Management Committee (Project record No.: HHGB [2014] 26). Shanghai Municipal
Bureau of Planning, Land and Resources issued the approval for Releasing Decision about Notice on
Requirements on Planning and Design of Construction Project of 40000t/a PVC Project by Water Phase
Process (HGTZHXF [2016] No. 9) and the site of this project was reselected at Plot B3 of the chemical
zone (the location of paste resin unit) (the alteration of the site selection of this project was announced in
the resolutions of the 3rd board meeting of the 9th board of directors). After the new site of this project
was determined, the Company launched the previous work such as application of the project for record,
environmental impact evaluation, safety evaluation and energy evaluation. B. The Company signed a
joint venture agreement with Ordos Junzheng Energy Chemical Co., Ltd on Dec. 15, 2016 (the
investment was announced in the resolutions of the 5th board meeting of the 9th board of directors) to
jointly invest in Mengxi Industry Zone, Ordos City, Inner Mongolia, China to establish Inner Mongolia
Junzheng Tianyuan Chemical Co., Ltd to produce EPVC products based on the local geological
advantages and 100000t/a EPVC unit technology of the company. In addition, the Company signed the
contract on technical license with Inner Mongolia Junzheng Tianyuan Chemical Co., Ltd, which
stipulated that Inner Mongolia Junzheng Tianyuan Chemical Co., Ltd used EPVC technology in the
                                                   19 / 95
                                               2016 Annual Report
manner of exclusive license, as a result, the production and development of the original paste resin unit
of the company was restricted. Based on the above-mentioned reasons, considering the high energy
consumption cost and the strict requirements on the environmental protection in Shanghai City, the
management of the Company decided to carry out the depreciation test of the paste resin unit. By Dec.
31, 2016, the Company, according to Data of Research Report on Paste Resin Industry in 2017, in
combination with the actual conditions of the Company, based on the net amount of the new cash flow
of the Company in the coming five years, provided RMB 142,123,801.94 Yuan as the provision for
impairment for the paste resin unit.
(2) The amount of provision for the impairment in Wujing Zone in this year was RMB 49,675,281.43
Yuan. The adjustment of the industrial structure of the Company in Wujing Zone entered into the final
stage (the shutdown in Wujing Zone was announced in the resolutions of the 5th board meeting of the 9th
board of directors), the overall production of the Company was entirely transferred to Shanghai
Chemical Zone, Wujing Zone was cleaned up in an all-round way and the production of the last
production unit was terminated in this period, so the provision for impairment of this unit and the
auxiliary facilities in this year was RMB 49,675,281.43 Yuan.
(3)The amount of provision for impairment of F2 electrolyte tank in this year was RMB 11,481,274.95
Yuan, the reasons for provision: with the cleaning-up of Wujing Zone of the Company in an all-round
way, the electrolyte tank in the former F2 unit was confronted with the cleaning-up, as a result,
according to the assessed value of the electrolyte tank confirmed by the Company by Dec. 31, 2016, the
amount of provision for impairment, totally RMB 11,481,274.95 Yuan was made.
     2. Employee termination benefits expenditures. Due to the implementation of permanent parking
scheme in Wujing Base and current arrangement of adjustment progress, a large number of employees
terminated labor contract with the company in batches, and the actually diversion expense incurred was
RMB 125,000,000Yuan, the termination benefits withheld was RMB 131,000,000Yuan, and the
personnel diversion cost incurred in current period was totally RMB 256,000,000Yuam.
(III) Analysis on assets and liabilities
√Applicable □Not applicable
1. Status of Assets and Liabilities
                                                                                                  Unit: Yuan
                                   Ratio in                          Ratio in
               Closing balance       total       Closing balance       total      Change
    Item                                                                                          Remark
               of current period    assets      of previous period    assets     ratio (%)
                                     (%)                               (%)
Monetary        433,999,695.91          9.67       240,425,945.13         4.96      80.51    Capital recovery
fund                                                                                         in current period is
                                                                                             better
Notes           448,822,006.32        10.00        336,221,352.79        6.94       33.49    Increase in notes
receivable                                                                                   receivable of the
                                                                                             new      subsidiary
                                                                                             New       Materials
                                                                                             Trading Company
Advance          50,056,591.51         1.11        136,446,799.31        2.81      -63.31    Decrease          in
payments                                                                                     advance     project
                                                                                             payments        and
                                                                                             dynamic payment
                                                                                             in current period
Other               762,159.00         0.02           3,561,716.78       0.07      -78.60    Collection        of
receivables                                                                                  imprest fund
Inventory       159,466,728.86         3.55        384,885,265.71        7.94      -58.57    Falling inventories
                                                                                             of EDC product
Project          97,570,414.69         2.17        305,408,986.91        6.30      -68.05    Carrying forward
under                                                                                        the fixed assets
construction                                                                                 after            the
                                                                                             completion        of
                                                                                             project
Engineering           37,478.63        0.00           1,381,336.82       0.03      -97.29    Special materials
                                                    20 / 95
                                               2016 Annual Report
material                                                                                        requisition
Developmen          17,364,046.98       0.39         30,247,277.15          0.62       -42.59   Carrying forward
t                                                                                               intangible assets
expenditure                                                                                     and fixed assets
                                                                                                after           the
                                                                                                completion       of
                                                                                                project
Long-term           15,196,164.92       0.34         23,460,981.73          0.48       -35.23   Increase         in
fees to be                                                                                      amortization     of
apportioned                                                                                     current period
Short-term         1,256,000,000.0     27.98       620,000,000.00          12.79      102.58    Optimized       the
loans                            0                                                              loan structure and
                                                                                                increased
                                                                                                short-term loans
                                                                                                and         reduced
                                                                                                long-term
                                                                                                payables
Employees’        131,471,648.00       2.93            780,802.00          0.02     16,738.0   Increase         in
salary                                                                                      3   dismissal benefit
payable                                                                                         appropriated     in
                                                                                                this period
Tax payable         80,270,216.68       1.79         14,824,741.55          0.31      441.46    Increase in unpaid
                                                                                                VAT of current
                                                                                                period
Other               88,814,552.29       1.98       441,394,365.43           9.10       -79.88   Return the loan of
payables                                                                                        RMB 350,000,000
                                                                                                Yuan for Huayi
                                                                                                Group
Long-term          170,000,000.00       3.79       645,000,000.00          13.30       -73.64   Return the loan of
payables                                                                                        RMB 475,000,000
                                                                                                Yuan for Huayi
                                                                                                Group
2. Restriction of main assets by the end of report period
√Applicable □Not applicable
                                                                                   Unit: Yuan Currency: RMB
            Item                Final book value                     Reason of restriction
Fixed assets                         5,008,538.28     Mortgage
Intangible assets                    1,314,847.65     Mortgage
           Total                     6,323,385.93
3. Other information
□Applicable √Not applicable
(IV) Analysis on operational information of the industry
√Applicable □Not applicable
     In the first year of “the 13th five-year plan”, the chlor-alkali industry entered the key period of
structure adjustment and pattern transformation. The industry operation characteristics experienced a
series of changes: continuous expansion of industry size with slower growth; enhanced
industrial concentration degree and gradually reasonable industrial layout; changing market pattern and
diversified trade mode; continuous optimization of production process and constant improvement of
energy conservation and environmental protection level. In recent years, affected by the pulling effect of
                                                    21 / 95
                                            2016 Annual Report
national economy growth and investment, as the basic material, there are many new expansion projects
constructed and put into operation every year in chlor-alkali industry. However, along with the
intensifying market competition of the industry, although the production capacity of chlor-alkali industry
is increasing, the backward and old production units will be gradually eliminated from the market, which
is the new characteristic of chlor-alkali production capacity growth.
                                                 22 / 95
                                           2016 Annual Report
Business information analysis of chemical industry
1 Basic information of the industry
(1). Industry policy and changes
√Applicable □Not applicable
Targeted policy during “the 13th five-year plan” of the state:
①Establish and improve the market access and exit mechanism to optimize the industrial layout
②Optimize material and technical route to promote the adjustment of product structure
③Utilize independent innovation and technical progress to promote the transformation and upgrading of
chlor-alkali industry
④Strengthen ecological environmental protection construction to promote the green development of the
industry
⑤Further deepen the circular economy development mode
⑥Strengthen the coordinated development of productive service industry
⑦Strengthen the information construction to promote the manufacturing level of transitional industries
⑧Implement responsible care for the industry, and enhance the health, security and environmental
system management.
(2). Basic information of main industry segments and industry status of the Company
√Applicable □Not applicable
     The caustic soda production capacity of our country reached 39,450,000t in 2016, with a net
increase of 720,000t (new increase of 2,030,000t and exit of 1,310,000t) compared with that at the end
of 2015. There were totally 158 caustic soda production enterprises in China, decreased by 5 enterprises
compared with last year. There is certain increment in caustic soda every year, but the exit production
capacity is large, and the overall production capacity is stable; due to the average increase in
consumption, the average operating rate of the industry increases from 74% in 2013 to 83% in current
period, and the number of production enterprises reduces from 176 in 2013 to 158 in current period, and
the industrial concentration ratio has been improved. PVC production capacity in 2016 was 23,260,000t,
decreased by 220,000t (new increase of 890,000t and exit of 1,110,000t) compared with that at the end
of 2015. At present, there are 75 PVC production enterprise, decreased by 6 compared with that at the
end of last year. Although the PVC production capacity is negative growth for three consecutive years,
the average operating rate of the industry increases from 62% in 2013 to 72% in current period, and the
number of production enterprises reduces from 93 in 2013 to 75 in current period, and the industrial
concentration ratio has been improved.
     The Company is mainly engaged in the manufacturing and sales of caustic soda, chlorine and
chlorine products as well as polyvinyl chloride plastic resin and products. As the main products of the
Company, the production capacity of caustic soda reaches 720,000t, dichloroethane reaches 720,000t,
liquid chlorine reaches 600,000t and paste and special resin reaches 80,000t. Currently, the production
capacity of special resin unit of the Company is 20,000t/a, and the Company is one of the largest special
resin suppliers in east China. The Company has obvious advantages in the fields of professional R&D
and product technology, and is thus an influential enterprise in the industry.
2 Product and production
(1). Main operating mode
√Applicable □Not applicable
      The Company has integrated the marketing resources, actively pursued the transformation of
marketing mode, focused on the overall stable operation of the chemical industrial area, firstly ensured
the stable supply of chlorine resources in chemical industrial area, optimized the regional structure and
built differentiated marketing mode.
      Caustic soda: internal and external integration operating mode, in combination of the production
operation conditions and domestic and foreign instant market situation, reasonable distribution of
internal and external sales proportion based on the principle of benefit priority, optimizing domestic
regional structure and improving the profitability of products;
      PVC: relying on the special resin base, the Company actively implements differentiated marketing
strategy and adhere to the development of domestic high-end resin market to satisfy the customers’
differentiated service requirements, and has maintained the dominant status in domestic high-end resin
market;
                                                 23 / 95
                                            2016 Annual Report
    Chlorine products: firstly putting MDI, TDI and similar production enterprises into operation as the
support in the downstream of chemical industrial area, with the rest mainly solvent market and PVC
market, to effectively reduce the product stock and sales cost.
Main conditions of operation mode adjustment in report period
□Applicable √Not applicable
(2). Main products
√Applicable □Not applicable
                                      Main upstream raw        Main downstream        Main price affecting
  Product       Industry segment
                                           materials           application field            factors
Caustic        Chlor-alkali          Industrial salt         Dye printing, paper      Market supply and
soda                                                         making                   demand
PVC            Chlor-alkali          Vinyl chloride          Leatheret, wall          Market supply and
                                                             paper, tools             demand
Chlorine       Chlor-alkali          Industrial salt,        Solvent, PVC             Market supply and
products                             ethylene                                         demand
(3). R&D innovation
√Applicable □Not applicable
     The R&D and development of Company continued to adhere to the main line of advanced chlorine
production process and polymer new material technology in 2016. The main research projects include
“hydrogen chloride catalytic oxidation to chlorine process technology development”, “dichloroethane
oxychlorination to tetrachlorethylene amplification technology research”, “development and application
research on customized CPVC resin”, “solution-method vinyl polymer technology exploration and
mPOE product development” etc.
     “Hydrogen chloride catalytic oxidation to chlorine process technology development” project has
completed the optimization of first generation catalyst in multi-channel small testing apparatus and
drafted the first generation of catalyst standards, and the catalyst has been used stably for over 6000h; in
the meanwhile, constructed the single tube test device in chemical area and put into operation,
established the analytical method for components of offgas absorption liquid; on the basis of process
package of completed 100,000t/a industrial unit, cooperated with domestic and foreign specialized
companies to improve the process package and improved the FSR of industrialized projects.
     As for the “dichloroethane oxychlorination to tetrachlorethylene amplification technology research”
project, on the basis of preliminary exploration of process conditions, raw material ratio and analytical
method, carried out amplification process research through industry-university-research mode, and
established oxidative chlorination test amplification unit in colleges and universities, which has entered
experimental stage.
     As for “development and application research on customized CPVC resin” project, carried out
quality tracing and assessment of CPVC resin and optimized the production process and technology to
improve the quality of CPVC resin; in the meanwhile, carried out the research on low-cost and
high-performance CPVC mixture formulation, reduced the formulation cost of tubs and pipes through
matching adjustment of auxiliary stabilizer system, lubrication system and filling system; developed
high-flow and creep-resistant special aggregate used for all vanadium redox flow battery for specific
customers, which is in specimen evaluation stage.
     “Solution-method vinyl polymer technology exploration and mPOE product development” is the
prospective project for exploiting POE new material market, through the implementation of the project,
the Company masters the rules of ethylene solution polymerization process, prepares POE product in
conformity with technical indicators, determines the tentative metallocene catalyst and opens up the
refining process of POE product.
(4). Production process and flow
√Applicable □Not applicable
                                                   24 / 95
                                                              2016 Annual Report
Caustic
soda:
                   Secondary refined                                                                                 20% alkali
                                                                            20% alkali
                        brine                                                                                     Finished product
                                                                            makeup tank
                                                                                                                    storage tank
   Electrolysis                                 32% alkali
                                                  cooler
                                                                                   32% alkali
                                                                                Finished product
                    Alkali                                                        storage tank
                                                                                                                     50% alkali
    Evaporator                                                        50% alkali                                  Finished product
                                                                        cooler                                      storage tank
Liquid chlorine
                                                      Process water       Refrigerated           Concentrated
                                                                          water                  sulphuric acid
 Secondary
                                 Wet chlorine
refined brine                                                                                                      Chlorine
                  Electrolysis                  Chlorine              Chlorine             Chlorine                                   Chlorine
                                                                                           column                 compressor
                                                scrubber               cooler                                                        refrigerator
                                                                                            drier
                                                                                                                                       Liquid
                                                                                                                                      chlorine
                                                                                                                                      storage
                                                                                                                                        tank
Hydrochloric
acid:
  Chlorine
                Hydrochloric                                                         Hydrochloric                          Offgas
                                                     Cooler
                acid furnace                                                         acid absorber                        absorber
Hydrogen
                                                                                              31% hydrochloric acid
                                                                                     Hydrochloric                     31% hydrochloric
                                                                                     acid storage                            acid
                                                                                         tank                          Storage tank in
                                                                                                                          tank farm
                                                                      25 / 95
                                                              2016 Annual Report
  Dichloroethane:
                              Recycle
                                gas
                            compressor
   Hydrogen                                                                                             20% alkali
   chloride
                                                             Liquid-vap                                        Crude EDC
   Ethylene Oxychlorination                                                                                      storage
                                         quench              or separator        Decanter        Lye tank
               reactor                                                                                             tank
                                          tower
   Oxygen
                                                            Refined EDC
                                       Storage                   EDC             EDC refining   EDC refining
                                     tank in tank            refining 3#          2# tower       1# tower
                                        farm                    tower
  Emulsion method PVC paste
  resin:
    Chemicals
                                                                      Recovery
       Chemicals preparation
                                                  Polymerization                   Drying            Package
            Seed emulsion
  Suspension method PVC special
  resin:
Chemicals
                                   Recovery
      Chemicals                    Polymerization             Stripping              Drying          Package
      preparation
  (5). Production capacity and work condition
  √Applicable □Not applicable
      Main plant area or project                           Designed capacity                    Capacity utilization (%)
  Caustic soda                                       720,000t                                                           98.98
  Dichloroethane                                     720,000t                                                           56.67
  Liquid chlorine                                    600,000t                                                          100.10
  Paste PVC                                          60,000t                                                            83.37
  Special PVC                                        20,000t                                                            92.24
  Increase or decrease in production capacity
  □Applicable √Not applicable
                                                                     26 / 95
                                          2016 Annual Report
Adjustment of production line and capacity structure optimization
□Applicable √Not applicable
Abnormal shutdown
□Applicable √Not applicable
3 Raw materials purchase
(1). Basic information about main raw materials
√Applicable □Not applicable
                                      Amount             Price        Influence of price fluctuation on
Raw material        Purchase mode
                                     purchased          changes                operating cost
                                                                  The influence of purchase price is in
                                                                  direct proportion to operating cost, the
Ethylene        Long-term contract      1,190,000t      Rise
                                                                  higher the purchase cost, the higher the
                                                                  operating shall be and vice versa.
                Combination of
                long-term and                                     The influence of purchase price is in
                short-term contract,                              direct proportion to operating cost, the
Salt                                    1,090,000t      Drop
                and combination of                                higher the purchase cost, the higher the
                import and domestic                               operating shall be and vice versa.
                purchase
                Combination of
                long-term and                                     The influence of purchase price is in
Vinyl           short-term contract,                              direct proportion to operating cost, the
                                        68,900t         Rise
chloride        and combination of                                higher the purchase cost, the higher the
                import and domestic                               operating shall be and vice versa.
                purchase
(2). Countermeasures for price fluctuation risk of raw materials
Basic information about holding derivatives and other financial products
□Applicable √Not applicable
Main information about the adoption of periodic reserves and other means
□Applicable √Not applicable
4 Particulars about product sales
(1). Sales model
√Applicable □Not applicable
The sales territories of caustic soda and EDC and other main products of the Company include Shanghai,
Jiangsu, Zhejiang and south regions, adopting the mode combining direct selling and distribution.
(2). Basic information about main business of the Company divided by industry segments
√Applicable □Not applicable
                                                                   Unit: Yuan Currency: RMB
                                                                           Increase    Increase
                                                             Increase or      or          or
                                                             decrease in   decrease    decrease
                                                     Gross
  Industry        Operating                                   operating       in       in gross
                                  Operating cost     profit
  segment          income                                   income over operating       profit
                                                      (%)
                                                              previous     cost over     over
                                                              year (%)     previous    previous
                                                                           year (%)    year (%)
Industry       3,825,805,128.74  3,478,929,132.02      9.07         -7.84       -2.18      -5.26
Constructio
                  52,384,954.98     50,855,935.65      2.92        57.02       71.53       -8.21
n industry
Trade          2,834,742,551.50  2,557,264,384.04      9.79        46.13       32.35        9.39
                                                  27 / 95
                                            2016 Annual Report
income
Pricing strategy and price changes of main products
√Applicable □Not applicable
      Pricing policy: the market price of product shall be adjusted timely according to real-time market
conditions, the changes of raw materials price and supply-demand relations.
      Caustic soda: the caustic sola supplied to the downstream of chemical industrial area is contract
pricing, and the price is relatively stable, the overall price of products sold on market was stable in the
first half year and caustic soda was persistent overheating since August in the second half of year,
mainly because that some chlor-alkali enterprises were forced to limit production or even stop
production due to environmental protection reasons; the maximum downstream alumina market of
caustic soda turned better and the caustic soda demand was strong.
      PVC: after nearly 5 years’ silence on the market, PVC eventually showed new condition in 2016.
The price began to rise in the middle of June, reached the peak in November and then became stable.
The main reason was that the reform effect of supply side of industrial capacity transfer gradually
appeared, furthermore, the limited production of calcium carbide for environmental reasons and better
export promoted PVC quotation to be better.
      Chlorine product: the chlorine product supplied to the downstream of chemical industrial area
belonged to contract price and the price was relatively stable, but the price of chlorine product sold on
the market changed significantly, in excessive supply status for a long term, and the price dropped
greatly compared with 2015.
(3). Basic information about main business of the Company divided by sales channel
√Applicable □Not applicable
                                                                        Unit: 10,000Yuan Unit: RMB
                                                                       Year-on-year increase or decrease
      Sales channel                     Operating income
                                                                           in operating income (%)
China                                             6,436,295,912.76                                 10.56
Other countries                                     276,636,722.46                                  -8.75
Description of accounting policy
□Applicable √Not applicable
(4). Basic information about joint product, byproduct, semi-finished product, waste material and
      waste-heat utilization product
√Applicable □Not applicable
                                                                              Proportion of sales
     Other output         Production in    Pricing          Main target
                                                                                of main target
       products           report period    method            customers
                                                                                customer (%)
Recycled material       1634.48         Market price   Shanghai Sitaiji
of Tianyuan Plant                                      Plastic Cement Co.,
                                                       Ltd
Sulfuric acid used      11385.82        Market price   Shanghai Chengtang
for fertilizer                                         Industrial Co., Ltd
Solvent ethylene        3927.16         Market price   Wuxi Yangshi
dichloride                                             Chemical Co., Ltd
Sodium                  17371.81        Market price   Shanghai Yuanyuan
monophosphate for                                      Chemical Co., Ltd
wastewater
treatment
Lye for                 48.98           Market price   Shanghai Lingtuo
neutralization                                         Chemical Co., Ltd
Situation description
□Applicable √Not applicable
                                                  28 / 95
                                            2016 Annual Report
5 Environmental Protection and Security
(1). Basic information about major safety production accidents of the Company in report period
□Applicable √Not applicable
(2). Basic information about environmental input of the Company during report period
√Applicable □Not applicable
                                                                   Unit: 104Yuan Currency: RMB
                                                  Proportion of invested fund in operating income
     Investment in environmental protection
                                                                        (%)
                                        3,892.28                                               0.58
Basic information about major environmental violations in report period
□Applicable √Not applicable
(3). Other information
□Applicable √Not applicable
(V) Analysis on investment status
1. General analysis on the equity investments in outside entities
√Applicable □Not applicable
1. General analysis on the equity investments in outside entities
                                                             Unit: 104Yuan Currency: RMB
                                                                            Year-on-year
                                 Closing      Beginning      Increment or
            Item                                                             increase or
                                 balance       balance        decrement
                                                                            decrease (%)
Long-term equity
investment                       36,521.56 28,885.54             7,636.02            26.44
Available-for-sale financial
assets                           45,320.96 42,407.82             2,913.14             6.87
Including: measured at fair
 value                             7,013.83   5,076.59           1,937.24            38.16
       Measured at cost          38,307.13 37,331.23               975.90             2.61
Analysis on the reason for change in equity:
1) Long-term equity investment increased by 26.44% year on year, mainly due to the investment
income in Huntsman confirmed in current period.
2) The Available-for-sale financial assets measured at fair value increased by 38.16% year on year,
mainly because that the Bank of Shanghai which was measured at cost was transferred to measured at
fair value in current period
(1) Significant equity investment
√Applicable □Not applicable
     1. The Company deliberated and passed the proposal on Investment in Inner Mongolia Junzheng
Tianyuan Chemical Co., Ltd. on the 5th board meeting of the 9th Board of Directors on Oct. 28, 2016,
and jointly set up Inner Mongolia Junzheng Tianyuan Chemical Co., Ltd. according to the proportion of
shares, i.e. 40% for chlor-alkali company and 60% for Junzheng energy; joint venture corporation
planned and constructed 200,000t/a seed emulsion polymerization paste resin project. The project has
been implemented in phases, and the production capacity of phase I is intended to be 100,000t. The joint
venture corporation completed business registration on Jan. 10, 2017, the fund of 4,000,000Yuan for
Phase I was fully invested on Jan. 24, 2017, and Phase I is predicated to be put into operation at the end
of 2017.
     2. The Company participated in capital increase and expansion MDI project of Shanghai Huntsman
Polyurethane Co., Ltd. and Shanghai Lianheng Isocyanate Co., Ltd in 2014. The contributions are as
follows: participation in the project of Shanghai Huntsman Polyurethane Co., Ltd. with the total
                                                 29 / 95
                                               2016 Annual Report
contributions of 36,571,851.75Yuan in 2014 and the contributions of 16,244,815.25Yuan in 2017,
totally 52,816,667Yuan by now. Participated in the expansion project of Shanghai Lianheng Isocyanate
Co., Ltd, with the total contributions of 39,135,000Yuan in 2014, 40,466,400Yuan in 2015 and
18,316,800Yuan in 2016, totally 97,918,200Yuan by now.
(2) Significant non-equity investment
√Applicable □Not applicable
40,000t/a high-performance chlorinated polyvinyl chloride project got the EIA approval issued by
Shanghai Environmental Protection Bureau on Feb. 28, 2017.
(3) Financial assets measured at fair value
√Applicable □Not applicable
                                                                       Change in
                                                          Profit or
                             Initial                                  owner's equity                         Sourc
 Stock           Stock                    Ending book      loss in                        Accounting
                           investment                                     in the                              e of
 code            Name                        value        reporting                        subject
                              cost                                      reporting                            share
                                                            period
                                                                          period
                                                                                                             Legal
          Huayi Group                                                                  Available-for-sal
600623                     690,000.00      1,921,920.00                 -590,947.50                          person
             share                                        15,015.00                    e financial assets
                                                                                                              share
                                                                                                             Legal
                                                                                       Available-for-sal
600636            3F       360,000.00      7,482,736.80               -1,117,551.60                          person
                                                                                       e financial assets
                                                                                                              share
                                                                                                             Legal
            Shanghai                                                                   Available-for-sal
600688                     900,000.00      2,898,000.00                  -13,500.00                          person
          Petrochemical                                                                e financial assets
                                                                                                              share
                                                                                                             Legal
                           1,272,952.6     16,234,320.0               -11,648,154.4    Available-for-sal
600610           ZYD                                                                                         person
                                     1                0   45,000.00               6    e financial assets
                                                                                                              share
                                                                                                             Legal
            Shenwan        1,250,000.0     14,850,000.0                                Available-for-sal
000166                                                    264,000.0   10,200,300.00                          person
            Hongyuan                 0                0                                e financial assets
                                                                  0                                           share
                                                                                                             Legal
                                                                                       Available-for-sal
600637    Oriental Pearl    86,967.00      2,026,331.10                 -951,636.40                          person
                                                          20,296.88                    e financial assets
                                                                                                              share
                                                                                                             Legal
             Haitai                                                                    Available-for-sal
600082                      20,000.00       297,200.00                      9,000.00                         person
          Development                                                                  e financial assets
                                                                                                              share
                                                                                                             Legal
            Bank of        7,307,758.8     24,427,750.5                                Available-for-sal
601229                                                                12,839,993.78                          person
            Shanghai                 5                6                                e financial assets
                                                                                                              share
                           11,887,678.     70,138,258.4   344,311.8
         Total                                                         8,727,503.82             /              /
                                   46                 6
(VI) Sales of important assets and equities
□Applicable √Not applicable
(VII)     Analysis on main controlled companies and participated companies
√Applicable □Not applicable
1) Operating performance of main controlled companies
                                                            Unit: 104Yuan Currency: RMB
                                                      Registered     Assets  Net profit
         Company name                Business nature    capital      volume
Shanghai     Chlor-Alkali     New
Materials Trading Co., Ltd.        Trade                   5,000 21,032.45          60.86
Shanghai Jinyuan Tap Water Co.,          Tap water                    900      1,429.48              85.50
                                                     30 / 95
                                            2016 Annual Report
Ltd.
                                     Maintenance    of
                                     petrochemical
                                     devices       and
Shanghai Chlor-Alkali machinery      engineering
Co., Ltd.                            construction                      3,000      2,743.33       -1,345.17
Shanghai Ruisheng Enterprise Co.
Ltd.                                 Trade                              500       6,837.85           340.03
                                     Production    of
                                     CPVC tubing and
Shanghai Luwei Plastics Co., Ltd.    pipe fittings                     5,000      1,480.03       -1,905.73
2) Influence of the net profit of the controlled subsidiary or the income of the participated subsidiary on
the Company's net profit
                                                                            Unit: 104Yuan Currency: RMB
                                                                                                Investment
                                                          Main            Main                    income
                      Business      Main products
Company name                                             business        business Net profit contributed by
                       nature        or service
                                                         income           profit              the participated
                                                                                                 company
Shanghai
Chlor-Alkali                        Chemical raw
New Materials                       materials and
Trading Co., Ltd.   Trade           product sales       25,295.30         1,611.35           60.86             60.86
Shanghai
Ruisheng                            Chemical raw
Enterprise    Co.                   materials and
Ltd.                Trade           product sales      249,549.75              948.94     340.03              340.03
Shanghai
Chlor-Alkali
Machinery Co.,                      Machine
Ltd.                Industry        manufacturing         9,546.30        1,037.27      -1,345.17         -1,120.93
Shanghai
Jinyuan      Tap
Water Co., Ltd.     Industry        Tap water                 810.03           411.77        85.50             66.50
                                    Production of
                    Chemical        CPVC tubing
Shanghai Luwei production           and pipe
Plastics Co., Ltd. and sale         fittings          271.46    -122.69 -1,905.73               -1,334.01
Shanghai
Huntsman            Chemical
Polyurethane        production   MDI refining
Co., Ltd.           and sale     and polymer     307,342.25 47,305.05 32,451.87                  9,735.56
Notes:
     The data of Shanghai Huntsman Polyurethane Co., Ltd. in 2016 is the list of relevant data in DSB
(S) Z (17) No. P00165 Audit Report issued by Deloitte Touche Tohmatsu CPA Ltd. (special general
partnership) for Shanghai Huntsman Polyurethane Co., Ltd.
(VIII) Particular about structured entity controlled by the Company
□Applicable √Not applicable
III. Discussion and analysis on the Company's future development
(I) Industrial pattern and trend
√Applicable □Not applicable
                                                    31 / 95
                                            2016 Annual Report
     In the first year of the 13th five-year plan, the chlor-alkali industry entered the critical period of
industrial restructuring and growth mode transformation. A series of changes had taken place in the
industrial operation characteristics: the industrial scale expanded continuously, but the speed of growth
slowed down; the industrial concentration ratio rose and the industrial layout became reasonable
gradually; the market pattern changed continuously and the trading mode was diversified; the production
process was continuously optimized and the energy-saving and environmental protection level was
continuously improved. There are still many contradictions and urgent problems in the industry, for
example, overcapacity problem still exists, product homogenized competition is intense, the
competitiveness of high-end product is poor, the technological innovation capacity should be further
enhanced, “zombie enterprises” drags down the industrial development, which should be overall solved
during the “13th Five-year Plan”.
     During the “13th five-year plan”, along with the steady progress in new urbanization, the demand of
caustic soda on end product market will maintain rapid growth. The urbanization rate of China will
exceed 60% in 2020, and the new urbanization and consumption upgrading will greatly pull the
construction investment in infrastructure and supporting facilities and promote the demand increase in
building materials, household appliances, clothing and articles for daily use, and then will pull the
continuous increase in the demand of caustic soda product. China’s annual export volume of caustic
soda was about 2,000,000t , basically covering the 64 countries of “the belt and road”. China has always
been the net exporter of caustic soda, the main export flow direction is basically in line with the
countries covered by “the belt and road”. Along with the development of economic construction of the
countries belong to “the belt and road”, the demand on caustic soda will further increase, so the export
volume of domestic caustic soda towards the countries of “the belt and road” will continue to be high. In
the coming years, the demand on caustic soda products of Europe, India, Australia and Southeast Asia
will continue to grow, therefore, the main future export regions of caustic soda will still be these
countries, and the export volume will keep increasing at the same time.
(II) Development strategy of the Company
√Applicable □Not applicable
     Strategic thinking of the Company: based on the main battlefield, determined to go out, developing
new business.
     Based on the main battlefield —— take the main battlefield of chemical industrial zone as the
support to optimize the operation capacity of units in service, raise the intrinsic safety degree of units
through technological innovation and management innovation to create high-end products and improve
the added value of products, so as to consolidate the main battlefield position of chemical industrial zone
and lay the foundation for innovative development of the Company.
     Determined to go out—— implement the strategy of “going out from the chlor-alkali industry,
going out from Shanghai and going out from China”, to deepen the cooperation with well-known
companies both at home and abroad and to explore the optimum allocation of production factors and the
best combination of market, take advantage of corporate brand, management and other intangible assets
to improve the core competitiveness of the Company.
     Developing new business—— take “innovation, upgrading and transformation” as the main line to
change the single structure of main products and to promote the Company to transfer to the
technology-based enterprise in advanced material field, with chlor-alkali products as the base, with new
materials and high value-added chemicals as the main body and with strong profitability. strengthen the
opportunity research on field segments of special PVC resin and related downstream products of
MDI/TDI.
(III) Operating plan
√Applicable □Not applicable
     Faced with the situation of coexistence between chances and challenges and between pressure
and power, the Company will take advantage of the situation to adapt to the new status of the
economic development, promote the optimization of economic structure, promote the steady growth of
business performance, boost the reform into depth, make steady progress, accelerate the
transformation of development, and strive to achieve more efficient and more sustainable development
of higher quality.
                                                  32 / 95
                                             2016 Annual Report
     1. Adhere to the green development as the premise to ensure safety and environmental protection
controlled in all aspects. The Company will reshape the HSE management system to ensure system
running effectively, strengthen the safety management measures and safety to enhance the intrinsic
safety with great efforts, implement the responsibility, strengthen the examination with strict reward and
penalty to enhance the HSE execution force, and improve the environmental management system to
achieve green chemical industry and social caring with responsibility of caring.
     2. Strive to remove the loss and get profit and ensure all the measures for reducing cost and
enhancing efficiency implemented. The Company will stabilize the daily production and operation to
ensure the high load operation of the profitable devices, optimize the sales structure to reduce
procurement cost and seek to maximize the benefits, reduce the cost of public utilities costs to strengthen
the efforts for implementing energy-saving and emission reducing projects and control strictly the three
expenses and manufacturing cost to reduce the cost and improve the efficiency.
     3. Speed up the industrialization of the key projects to lay a solid foundation for follow-up
development. On the basis of completion of feasibility study report, the environmental impact
assessment of 100,000t hydrogen chloride oxidation to chlorine project has been started; strengthen the
technical upgrading of existing resin products, collect various PVC resins for analysis and evaluation,
select 2 to 3 varieties according to different production characteristics and process for future
development, furthermore, make improvement for the production process, line and technology for
existing PVC products to improve the stability of PVC resin products.
     4. Deepen the management to improve operation efficiency. Due to the sharp decrease in the staff
of the Company, the organizational structure, business process, internal control system should be
further organized and improved. The Company will optimize the organizational structure and
personnel structure, establish reasonable incentive mechanism, to deepen the management and
improve the efficiency.
     5. Continue to explore the research on go out strategy to ensure the sustainable development.
From the aspects of perfecting the existing industrial chain in Shanghai chemical industrial area,
extending the existing product chain and looking for chemical new material product with high added
value and technical content, in combination with the actual situation of the Company, strengthen the
opportunity research on field segments of special PVC resin and related downstream products of
MDI/TDI.
(IV) Possible risks
√Applicable □Not applicable
      1) Risk of microeconomic fluctuation. The downward economic pressure will not decrease in 2017
and the economic situation is still grim.
      2) Policy risk and industrial risk. Under the background of deepening the structural reform of
supply side and cutting excessive industrial capacity of the state, there will be greater uncertainty on
chlor-alkali products and its downstream products market in 2017.
      3) Raw material risk. Impacted by cold chain transportation, the Company’s main raw material
ethylene is of the unique commercial attributes, high fluctuations in price, and being easy to rise and
difficult to fall. This will deviate from the production cost and bring risk to the control of the production
cost of the Company’s product ethylene dichloride. The electricity needed for sodium hydroxide is made
as part of the raw material, but it is difficult to get policy favor for the price of the electricity for
electrolysis under the guidance of existing location economy.
2. Countermeasures
     1) Except for the five points in business plan, the Company shall strengthen the pace of
transformation of scientific research innovation into productivity, and accelerate the process of
industrialization of new technology chlorine hydride catalytic oxidation to chlorine and the amplification
technology research on dichloroethane oxychlorination to perchlorethylene.
     2) Continue to explore the research on go-global strategy to look for resource and location
advantages. Aim at the regions with cost advantages to create new production base, and extend the
production chain of the company, so as to realize the transformation and upgrading.
                                                   33 / 95
                                           2016 Annual Report
    3) take advantage of supply-marketing integrated platform of trade company to realize the “supply
and marketing linkage, products linkage and main trade linkage” for comprehensive improvement of the
marketing level.
(V) Other
□Applicable √Not applicable
IV. Note on the status and causes not disclosed as per criteria due to not being applicable to the
    provisions of the criteria or special causes
□Applicable √Not applicable
                                    Section V Major Events
I. Proposal on profit distribution of ordinary shares or transfer of capital reserves
(I) The formulation, implementation or adjustment of the cash dividend policy
√Applicable □Not applicable
     1. In 2012, the Company, according to relevant regulations of China Securities Regulatory
Commission, Shanghai Securities Regulatory Bureau and Shanghai Stock Exchange, made amendment
on relevant provisions related to profit distribution in the Articles of Association, further improved
relevant decision-making process and mechanism, clarified the profit distribution form, the actual
conditions and proportion of the cash dividend, the use principle of undistributed profit and other
specific policies.
     2. The cash dividend policy has not been adjusted in reporting period.
(II) The Company’s profit distribution plan for ordinary shares or proposal and the plan for
     capital reserves transferred to share capital or proposal in recent 3 years (including the
     reporting period)
                                                                    Unit: Yuan Currency: RMB
                                                                                               Ratio in the net
                                                                              Net profit
                                Issued                                                               profit
                                                               Total        attributable to
                               dividend     Shares                                              attributable to
 The year        Bonus                                     amount of     shareholders of the
                              for every   increased                                            shareholders of
     for        share for                                      cash      listed Company in
                              10 shares   for every                                                the listed
 dividend       every 10                                     dividend     the consolidated
                                 held     10 shares                                              Company in
distribution   shares held                                 issued (tax    statements in the
                             (RMB) (tax      held                                                     the
                                                            included)     year for dividend
                              included)                                                          consolidated
                                                                             distribution
                                                                                               statements (%)
2016                     0           0                0              0     -328,091,761.80
2015                     0           0                               0       95,615,030.34
2014                     0           0                0              0     -592,502,499.95
(III) Repurchase offer of shares in cash and included in cash dividends
□Applicable √Not applicable
(IV) If the profit is positive in the reporting period and the profit distributable to common
      shareholders by the parent company is positive but the Company does not lodge the proposal
      for profit distribution in cash for ordinary shares, the Company shall disclose in detail the
      reasons and the purpose and use plan of the undistributed profit
□Applicable √Not applicable
                                                 34 / 95
                                            2016 Annual Report
II. Fulfillment of commitments
(I) Commitments of the actual controller, shareholders, related parties, purchaser and the
       Company made to other related parties in the reporting period or left to the reporting
       period
Applicable √Not applicable
(II) If there is earnings forecast for assets or project of the Company and the assets and project
       are still in forecasted earnings period during the reporting period, the Company shall
       explain whether the assets or project have reached the original earnings forecast and give
       the reasons
□Reached □Failing to reach √Not applicable
III. Fund occupation and the liquidation in the reporting period
□Applicable √Not applicable
IV. Note of the Company on the “non-standard auditor’s report” of the public accounting firm
□Applicable √Not applicable
V. The analysis and explanation of the Company on the cause and influence of the changes in the
    accounting policy and accounting estimate or correction of significant accounting errors
(I) Analysis and explanation of the Company on the cause and influence of the changes in the
    accounting policy and accounting estimate
√Applicable □Not applicable
Follow the Provisions on Accounting Treatment Value-added Tax
The Ministry of Finance published the Provisions on Accounting Treatment Value-added Tax (CK
[2016] No. 22) Dec. 3, 2016 and the Provisions are applicable to the related transaction after May 1,
2016. The influences of the implementation of the provisions are as follows:
    Contents and Reasons for the Changes of                 Approval            Name and Amount of the
                Accounting Policies                         Procedures              Affected Items
(1) Adjust the item “business tax and surcharges”   Approved by the
in income statement to item “taxes and                decision of the     Taxes and surcharges
surcharges”.                                         Board of Directors
                                                                           The amount of taxes and
                                                                           surcharges of this year is
(2) Reclassify the housing property tax, land use
                                                                           increased          by        RMB
tax, vehicle and vessel usage tax and stamp duty
                                                                           6,835,416.74Yuan             after
arising from the business activities of the
                                                      Approved by the      adjustment, and the amount
enterprise since May 1, 2016 in the item
                                                       decision of the     of administrative expenses of
“administrative expenses” to the item “taxes and
                                                      Board of Directors   this year is decreased by
surcharges”, and the taxes incurred before May
                                                                           RMB       6,663,499.58       Yuan
5, 2016 shall not be adjusted. The comparative
                                                                           after adjustment. The amount
data shall not be adjusted.
                                                                           of sales expenses of this year
                                                                           is     decreased        by   RMB
                                                  35 / 95
                                              2016 Annual Report
    Contents and Reasons for the Changes of                   Approval             Name and Amount of the
               Accounting Policies                            Procedures               Affected Items
                                                                              171,917.16        Yuan       after
                                                                              adjustment.
                                                                              The adjusted increment in
                                                                              ending     balance    of     other
(3) Reclassify the value-added tax of income (or
                                                                              current liabilities is RMB 0
gains) which has been recognized without
                                                        Approved by the       Yuan, the adjusted increment
fulfillment of VAT obligations and should be
                                                         decision of the      in       other       non-current
recognized as output VAT from the item “tax
                                                        Board of Directors    liabilities is RMB 0 Yuan,
payable” to the item “other current liabilities”.
                                                                              and the adjusted decrement
The comparative data shall not be adjusted.
                                                                              in ending balance of tax
                                                                              payable is RMB 0Yuan.
                                                                              The adjusted increment in
(4) Reclassify the credit balance of the
                                                                              ending     balance    of     other
classification items of “VAT payable”, “unpaid
                                                                              current assets is RMB 0
VAT”, “pending deduct VAT on purchase”,
                                                        Approved by the       Yuan, the adjusted increment
“input VAT to be recognized” and            “VAT
                                                         decision of the      in other non-current assets is
retained” under the item “taxes payable” to the
                                                        Board of Directors    RMB       0 Yuan, and the
item “other current assets” (or “other non-current
                                                                              adjusted increment in ending
assets”). The comparative data shall not be
                                                                              balance of tax payable is
adjusted.
                                                                              RMB 0Yuan.
(II) Analysis and explanation of the Company on the cause and influence of the correction of
     significant accounting errors
□Applicable √Not applicable
(III)    Communication with former CPA firm
□Applicable √Not applicable
(IV)     Other information
□Applicable √Not applicable
VI. Engagement and dismissal of the public accounting firm
                                                                             Unit:104 Yuan Currency: RMB
                                                                              Now engage
Name of the domestic public accounting firm              BDO China Shu         Lun Pan         Certified   Public
                                                         Accountants LLP
Reward of the domestic public accounting firm
Audit term of years of the domestic public
                                                    36 / 95
                                             2016 Annual Report
accounting firm
                                                   Name                    Reward
Public accounting firm for audit of   BDO China Shu Lun Pan Certified                     35.2
internal control                      Public Accountants LLP
Note on the engagement and dismissal of the public accounting firm
□Applicable √Not applicable
Note on reengagement of public accounting firm in audit period
□Applicable √Not applicable
VII. Risk of suspension of listing
(I) Cause for suspension of listing
□Applicable √Not applicable
(II) Countermeasures to be taken by the Company
□Applicable √Not applicable
VIII. Faced with the termination of listing and causes
□Applicable √Not applicable
IX. Events related to bankruptcy and reorganization
□Applicable √Not applicable
X. Significant lawsuits and arbitrations
□Existence of significant lawsuits and arbitrations in the year
√No significant lawsuits and arbitrations in this year
XI. Penalties to the listed Company, Directors, Supervisors, senior executives, controlling
    shareholder, actual controller and purchaser and the corrections
□Applicable √Not applicable
XII. Credit conditions of the Company and its controlling shareholder and actual controller in
    reporting period
□Applicable √Not applicable
XIII. The Company's equity incentive plan, employee stock ownership plan and other incentives
     to the employees and the influences
(I) Disclosure of related incentive matter in provisional announcement without subsequent
       progress or change
□Applicable √Not applicable
(II) Incentive matters not disclosed in provisional announcement or with subsequent progress
Equity incentive
□Applicable √Not applicable
Other information
□Applicable √Not applicable
Information about employee stock ownership plan
□Applicable √Not applicable
                                                   37 / 95
                                             2016 Annual Report
Other incentive measures
□Applicable √Not applicable
XIV. Significant related transactions
(I) Related transactions associated with routine operations
1. Events already disclosed in the provisional announcement and having no subsequent progress
or change
√Applicable □Not applicable
                     Summary of events                                        Query Index
The 28th meeting of the 8th Board of Directors on Mar. 25,   Reviewed and passed on the 28th meeting of the
2016 and 2015 Annual Shareholders’ Meeting of Apr. 25,      8th Board of Directors and 2015 Annual
2016 reviewed and passed the Proposal on Daily Related       Shareholders’ Meeting
Transactions of the Company. The related transaction of      www.sse.com.cn
the Company and related parties are normal business
activities and largely support the day-to-day operations
and development, conforming to the principle public,
justice and fairness.
2. Events already disclosed in the provisional announcement and having subsequent progress or
change
□Applicable √Not applicable
3. Events not disclosed by provisional announcements
√Applicable □Not applicable
                                                                     Unit: 104 Yuan Currency: RMB
                                                                                              Ratio in
                                                                                           total amount
                                                                 Pricing
                                         Type of   Content of               Amount of            of
 Related transaction                                            principle
                       Relationship       related     related                  related      transaction
    party                                                  for related
                                       transaction transaction              transaction of the same
                                                               transaction
                                                                                               kind
                                                                                                (%)
Shanghai Huayi        Controlled      Purchase     Material    Settled               92.13          0.02
Energy Chemical       subsidiary of goods          purchase through
Co., Ltd.             parent                                   negotiated
                      company                                  price
Shanghai Huayi        Controlled      Purchase     Material    Settled               84.24          0.02
Tianyuan Chemical subsidiary of goods              purchase through
Logistics Co., Ltd.   parent                                   negotiated
                      company                                  price
Shanghai              Wholly-owne Purchase         Material    Settled             140.30           0.03
Chlor-Alkali Creation d subsidiary of goods        purchase through
Co., Ltd.             parent                                   negotiated
                      company                                  price
Shanghai Huayi        Wholly-owne Purchase         Material    Settled               44.17          0.01
Group Equipment       d subsidiary of goods        purchase through
Engineering Co., Ltd. parent                                   negotiated
                      company                                  price
Shanghai Chemical Wholly-owne Purchase             Material    Settled               10.21          0.00
Supply and            d subsidiary of goods        purchase through
Marketing Co., Ltd. parent                                     negotiated
                      company                                  price
Shanghai Chemical Wholly-owne Purchase             Material    Settled               86.25          0.02
Supply and            d subsidiary of goods        purchase through
Marketing Co., Ltd. parent                                     negotiated
                                                   38 / 95
                                             2016 Annual Report
                      company                                      price
Shanghai Huayi        Controlled        Purchase        Material   Settled        147.01    0.04
Information           subsidiary of     goods           purchase   through
Technology Co., Ltd. parent                                        negotiated
                      company                                      price
Shanghai White        Controlled        Purchase        Material   Settled           0.49   0.00
Elephant & Swan       subsidiary of     goods           purchase   through
Battery Co., Ltd.     parent                                       negotiated
                      company                                      price
Huayi Group (Hong Wholly-owne           Purchase        Material   Settled      12,285.10   3.06
Kong) Co., Ltd.       d subsidiary of   goods           purchase   through
                      parent                                       negotiated
                      company                                      price
Shanghai Tiantan      Controlled        Purchase        Material   Settled        608.89    0.15
Auxiliaries Co., Ltd subsidiary of      goods           purchase   through
                      parent                                       negotiated
                      company                                      price
Shanghai Chemical Wholly-owne           Receive         Receive    Settled        288.42    0.07
Industry Inspection & d subsidiary of   service         service    through
Detection Co., Ltd. parent                                         negotiated
                      company                                      price
Shanghai Huayi        Controlled        Receive         Receive    Settled       2,474.87   0.62
Tianyuan Chemical subsidiary of         service         service    through
Logistics Co., Ltd.   parent                                       negotiated
                      company                                      price
Shanghai New          Controlled        Receive         Receive    Settled        524.80    0.13
Tianyuan Chemical subsidiary of         service         service    through
Transport Co., Ltd. parent                                         negotiated
                      company                                      price
Shanghai              Wholly-owne       Receive         Receive    Settled        341.32    0.08
Chlor-Alkali Creation d subsidiary of   service         service    through
Co., Ltd.             parent                                       negotiated
                      company                                      price
Shanghai Huayi        Wholly-owne       Receive         Receive    Settled        846.86    0.21
Engineering Co., Ltd. d subsidiary of   service         service    through
                      parent                                       negotiated
                      company                                      price
Shanghai Huayi        Controlled        Receive         Receive    Settled        302.17    0.08
Information           subsidiary of     service         service    through
Technology Co., Ltd. parent                                        negotiated
                      company                                      price
Shanghai Pacific      Controlled        Receive         Receive    Settled         11.11    0.00
Chemica Equipment subsidiary of         service         service    through
Engineering Co., Ltd. parent                                       negotiated
                      company                                      price
Shanghai Huayi        Controlled        Sell goods      Product    Settled        475.70    0.11
Energy Chemical       subsidiary of                     sale       through
Co., Ltd.             parent                                       negotiated
                      company                                      price
Shanghai 3F New       Controlled        Sell goods      Product    Settled         39.09    0.00
Materials Co., Ltd.   subsidiary of                     sale       through
                      parent                                       negotiated
                      company                                      price
Shanghai Huayi        Controlled        Sell goods      Product    Settled        293.68    0.07
Tianyuan Chemical subsidiary of                         sale       through
Logistics Co., Ltd.   parent                                       negotiated
                                                     39 / 95
                                             2016 Annual Report
                      company                                     price
Shanghai              Wholly-owne       Sell goods      Product   Settled      119.84   0.03
Chlor-Alkali Creation d subsidiary of                   sale      through
Co., Ltd.             parent                                      negotiated
                      company                                     price
Shanghai Tianyuan Wholly-owne           Sell goods      Product   Settled      880.50   0.21
Group Shengde         d subsidiary of                   sale      through
Plastics Co., Ltd.    parent                                      negotiated
                      company                                     price
Shanghai Resin Plant Wholly-owne        Sell goods      Product   Settled       37.76   0.01
Co., Ltd.             d subsidiary of                   sale      through
                      parent                                      negotiated
                      company                                     price
Shanghai Huayi        Controlled        Sell goods      Product   Settled      225.66   0.05
Acrylic Acid Co.,     subsidiary of                     sale      through
Ltd.                  parent                                      negotiated
                      company                                     price
Shanghai Chemical Wholly-owne           Sell goods      Product   Settled      124.29   0.03
Supply and            d subsidiary of                   sale      through
Marketing Co., Ltd. parent                                        negotiated
                      company                                     price
Shanghai Sanaisi      Wholly-owne       Sell goods      Product   Settled        0.55   0.00
Reagent Co., Ltd.     d subsidiary of                   sale      through
                      parent                                      negotiated
                      company                                     price
Shanghai Yiping       Controlled        Sell goods      Product   Settled      191.59   0.05
Pigment Co., Ltd.     subsidiary of                     sale      through
                      parent                                      negotiated
                      company                                     price
Yixing Huayi          Controlled        Sell goods      Product   Settled      644.31   0.15
Colourating Science subsidiary of                       sale      through
and Technology Co., parent                                        negotiated
Ltd.                  company                                     price
Shanghai Tiantan      Controlled        Sell goods      Product   Settled       71.44   0.02
Auxiliaries Co., Ltd subsidiary of                      sale      through
                      parent                                      negotiated
                      company                                     price
Shanghai Huayi        Controlled        Provide         Provide   Settled        0.87   0.00
Tianyuan Chemical subsidiary of         service         service   through
Logistics Co., Ltd.   parent                                      negotiated
                      company                                     price
Shanghai Huayi        Wholly-owne       Provide         Provide   Settled      583.75   0.14
Engineering Co., Ltd. d subsidiary of   service         service   through
                      parent                                      negotiated
                      company                                     price
Shanghai Huayi        Wholly-owne       Provide         Provide   Settled       46.20   0.01
Polymer Co., Ltd.     d subsidiary of   service         service   through
                      parent                                      negotiated
                      company                                     price
Shanghai Pacific      Controlled        Provide         Provide   Settled        5.19   0.00
Chemica Equipment subsidiary of         service         service   through
Engineering Co., Ltd. parent                                      negotiated
                      company                                     price
Shanghai Coking       Controlled        Provide         Provide   Settled       13.16   0.00
Storage and           subsidiary of     service         service   through
Transportation Port parent                                        negotiated
                                                     40 / 95
                                       2016 Annual Report
Co., Ltd                 company                            price
                               Total                                /       22,041.92           5.42
Particulars of big sale return
Notes on related transactions                                           The transactions between
                                                                        the Company and the
                                                                        related parties is needed by
                                                                        the Company's routine
                                                                        operating activities for
                                                                        purchase of raw material
                                                                        and sale of products of the
                                                                        regular business activities,
                                                                        as well as the expenditures
                                                                        for payment of service and
                                                                        custody business produced
                                                                        from stripping the non
                                                                        recurring assets and non
                                                                        core business. These are
                                                                        necessary supplements for
                                                                        professional cooperations
                                                                        and mutual exchange of
                                                                        merits       between      the
                                                                        Company          and      the
                                                                        controlled shareholder and
                                                                        between partial subordinate
                                                                        enterprises,     and    such
                                                                        related transactions shall be
                                                                        continued in future.
(II) Related transactions from acquisition and sale of assets or equity
1. Events already disclosed in the provisional announcement and having no subsequent progress
     or change
□Applicable √Not applicable
2. Events already disclosed in the provisional announcement and having subsequent progress or
     change
□Applicable √Not applicable
3. Events not disclosed by provisional announcements
□Applicable √Not applicable
4.  If performance agreement involved, the performance implementation situation in reporting
    period should be disclosed
□Applicable √Not applicable
(III) Significant related transactions of common investment
1. Events already disclosed in the provisional announcement and having no subsequent progress
     or change
□Applicable √Not applicable
2. Events already disclosed in the provisional announcement and having subsequent progress or
     change
□Applicable √Not applicable
3. Events not disclosed by provisional announcements
□Applicable √Not applicable
                                            41 / 95
                                           2016 Annual Report
(IV) Related creditor’s rights and debts
1. Events already disclosed in the provisional announcement and having no subsequent progress
    or change
□Applicable √Not applicable
2. Events already disclosed in the provisional announcement and having subsequent progress or
    change
□Applicable √Not applicable
3.   Events not disclosed by provisional announcements
     √Applicable □Not applicable
                                                                        Unit: 104Yuan Currency: RMB
                                                    Provide fund to the related The related party provided
                                                              party              fund to the listed Company
    Related party              Relationship                                  Beginni
                                                   Beginning            Closing                      Closing
                                                              Amount               ng      Amount
                                                    balance             balance                      balance
                                                                                 balance
Shanghai Huayi Tianyuan          Controlled            33.57     -0.09     33.48     6.35       7.75   14.10
Chemical Logistics Co., Ltd.     subsidiary of
                                 parent company
Shanghai Chlor-Alkali            Wholly-owned                6.03    12.81    18.84   51.65   -39.40    12.25
Creation Co., Ltd.               subsidiary of
                                 parent company
Shanghai Resin Plant Co., Ltd.   Wholly-owned                4.00     1.74     5.74
                                 subsidiary of
                                 parent company
Shanghai Tianyuan Group          Wholly-owned        2,099.51 -1,174.0       925.51
Shengde Plastics Co., Ltd.       subsidiary of
                                 parent company
Shanghai Huayi Engineering       Wholly-owned               28.51   271.04   299.55   11.42   187.21   198.63
Co., Ltd.                        subsidiary of
                                 parent company
Shanghai Huayi Acrylic Acid      Controlled                 88.84   -81.25     7.59
Co., Ltd.                        subsidiary of
                                 parent company
Shanghai Huayi Fine Chemical     Wholly-owned                0.47    72.65    73.12
Co. Ltd.                         subsidiary of
                                 parent company
Shanghai Soap Making Co.,        Controlled                           0.00             0.54     0.00     0.54
Ltd.                             subsidiary of
                                 parent company
Shanghai Huayi Energy            Controlled            144.18        -4.96   139.22
Chemical Co., Ltd.               subsidiary of
                                 parent company
Shanghai 3F New Materials        Controlled                 21.88   -10.18    11.70
Co., Ltd.                        subsidiary of
                                 parent company
Shanghai Huayi Polymer Co.,      Wholly-owned          107.52 -107.52          0.00
Ltd.                             subsidiary of
                                 parent company
Shanghai Tiantan Auxiliaries     Controlled                  0.81    -0.81     0.00    0.00    53.47    53.47
Co., Ltd                         subsidiary of
                                 parent company
Shanghai Yiping Pigment Co.,     Controlled                  6.75     8.82    15.57
Ltd.                             subsidiary of
                                                  42 / 95
                                           2016 Annual Report
                              parent company
Yixing Huayi Colourating      Controlled              303.40       -29.29   274.11
Science and Technology Co.,   subsidiary of
Ltd.                          parent company
Shanghai Huayi Information    Controlled                   65.93   -65.93     0.00       8.71     3.98   12.69
Technology Co., Ltd.          subsidiary of
                              parent company
Shanghai Pacific Chemica      Controlled                    0.00    6.07      6.07
Equipment Engineering Co., subsidiary of
Ltd.                          parent company
Shanghai Huayi New            Controlled                    0.00    6.37      6.37
Materials Co., Ltd            subsidiary of
                              parent company
Shanghai New Tianyuan         Controlled                                               11.08    49.45    60.53
Chemical Transport Co., Ltd. subsidiary of
                              parent company
Shanghai Chemical Industry Wholly-owned                                                  1.41   46.80    48.21
Inspection & Detection Co.,   subsidiary of
Ltd.                          parent company
Shanghai Chemical Supply      Wholly-owned                                             10.36     -1.72    8.64
and Marketing Co., Ltd.       subsidiary of
                              parent company
Shanghai Huayi Equipment      Wholly-owned                                             12.20    14.89    27.09
Engineering Co., Ltd          subsidiary of
                              parent company
Huayi Group (Hong Kong)       Wholly-owned                                           3,730.85 -2,145.8 1,585.00
Co., Ltd.                     subsidiary of
                              parent company
Shanghai Huayi Fine Chemical Wholly-owned                                                0.00   27.77    27.77
Co. Ltd.                      subsidiary of
                              parent company
Shanghai Huayi (Group)        Controlling                   0.00   12.55     12.55 99,685.7 -82,683. 17,001.8
Company                       shareholder                                                 4       89        5
Shanghai Shenyu Medicine      Controlled                                               0.02    -0.02     0.00
Chemical Co., Ltd.            subsidiary of
                              parent company
Shanghai Huifeng Resin Plant Wholly-owned                                                5.14     0.00    5.14
                              subsidiary of
                              parent company
Shanghai Huayi Group          Controlled                                                 0.17     0.00    0.17
Huayuan Chemical Co., Ltd. subsidiary of
                              parent company
Shanghai Sanaisi Reagent Co., Controlled                                                 0.08    -0.01    0.07
Ltd.                          subsidiary of
                              parent company
Shanghai Peony Painting Ink Controlled                                                   0.14     0.00    0.14
Co., Ltd                      subsidiary of
                              parent company
Shanghai Huayi Group          Affiliated                                                 7.04     1.99    9.03
Finance Co., Ltd.             company
                                                        2,911.40 -1,081.9 1,829.42 103,542. -84,477. 19,065.3
                      Total
                                                                        8               90        58        2
Cause for the related creditor’s rights and debts Caused by purchase and sale in regular production and
                                                      operation
Influence of the related creditor’s rights and debts No influence on the Company’s operating results and
on the Company                                        financial status
                                                 43 / 95
                                            2016 Annual Report
(V) Other
□Applicable √Not applicable
XV. Important contracts and the implementation
(I) Custody, contracting and leasing
1. Custody
□Applicable √Not applicable
2. Contracting
□Applicable √Not applicable
3. Leasing
√Applicable □Not applicable
                                                                              Unit: 104Yuan Currency: RMB
                                                                                           Basis
                                                                                                   Rela
                                                                                            for
                                         Amount                                                     ted
                                                      Starting                 Income    setting
  Name of       Name of         Leased      of                   End date                          trans    Related
                                                      date of                   from      leasin
   lessor        lessee         assets    leased                 of leasing                        actio    relation
                                                      leasing                  leasing       g
                                          assets                                                    n or
                                                                                          incom
                                                                                                    not
                                                                                             e
Shanghai       Shanghai     Fixed        3,466.16    01-01-2     12-31-201    1,384.68   Settled   Yes     Controlled
Chlor-Alkali   Huayi        asset                    016         6                       throug            subsidiary
Chemical       Tianyuan                                                                  h                 of parent
Co., Ltd.      Chemical                                                                  negoti            company
               Logistics                                                                 ated
               Co., Ltd.                                                                 price
Shanghai       Shanghai     Fixed         633.35     01-01-2     12-31-201      365.08   Settled   Yes     Wholly-o
Chlor-Alkali   Tianyuan     asset                    016         6                       throug            wned
Chemical       Group                                                                     h                 subsidiary
Co., Ltd.      Shengde                                                                   negoti            of parent
               Plastics                                                                  ated              company
               Co., Ltd.                                                                 price
(II) Guarantee
□Applicable √Not applicable
(III) Management on cash assets made through committing others
1. Financing through commitment
□Applicable √Not applicable
2. Loan through commitment
□Applicable √Not applicable
3. Other financing investment and derivative investment
□Applicable √Not applicable
(IV) Other important contracts
□Applicable √Not applicable
                                                    44 / 95
                                            2016 Annual Report
XVI. Notes to other major events
□Applicable √Not applicable
XVII. Fulfillment of social responsibility
(I)    Poverty alleviation of listed company
□Applicable √Not applicable
(II)    Work on social responsibility
√Applicable □Not applicable
For details, see 2016 Social Responsibility Report of Shanghai Chlor-Alkali Chemical Co., Ltd.
(Summary) announced in the website of Shanghai Stock Exchange: www.sse.com.cn on March 30, 2017.
(III)   Information about environmental protection of the company and its subsidiaries belonging
     to key pollutant discharging unit published by environmental protection department
√Applicable □Not applicable
1. As for the environmental protection work in 2016, the Company has always adhered to the
    sustainable development path, strengthened the awareness of social responsibility, promoted the
    management and governance simultaneously based on the concept of green chemical industry, and
    the technical and economical indicators of environmental protection have been well fulfilled. The
    indicators of “three rates” for environmental protection have been completed, the running rate of
    environmental protection treatment facilities was 100%, the industrial wastewater treatment rate was
    100 %, and the external monitoring qualification rate of the “three wastes” discharge was 100%. The
    environmental protection expenditures of the Company in 2016 was RMB 38,922,800 Yuan,
    including RMB 16,720,000Yuan operating expenses, RMB 7,412,300Yuan of environmental
    protection maintenance fee and RMB 14,790,500Yuan of effluent charge. The environmental
    protection completion acceptance of by-product hydrogen energy project, integrated wastewater
    operation project in industrial area and 500m3 finished-product sodium hypochlorite storage tank
    construction project have been completed. Through setting goals and targets, operation control and
    emergency plan, the environmental management system of the company ensured the control of key
    environmental factors throughout the year. After the adjustment of the organizational structure of the
    company in July, the environmental management system shall follow the newly adjusted
    organizational structure to modify relevant procedure documents and supporting documents, update
    and identify the environmental factors of the Company and key environmental factors and
    implemented the control means of key environmental factors, and passed the third-party supervision
    and examination organized by Shanghai Audit Center of Quality System on November 30 and
    December; the environmental management system of the company was in continuous and effective
    operation. After optimized operation of wastewater integrated project of the two plants in chemical
    area in 2016 and incorporating the organic wastewater of Tianyuan into the organic wastewater
    treatment system of Huasheng, the problem that the organic wastewater of Tianyuan exceeded the
    takeover standard had been solved in 2016 and the organic wastewater of Huasheng was basically
    stable and operated up to standard after operation optimization. 244.22 tons of hazardous wastes
    from the two plants in chemical area were treated according to relevant regulations; more than 200
    tons of hazardous wastes generated from the removal of production unit have been packed and
    stored in accordance with regulations for incineration treatment.
      Take the monitoring of environmental protection data of state-controlled enterprise as the basis to
ensure the stability and reliability of the daily operation of environmental protection devices. The
operating ratio and load rate of environmental protection device has reached the discharge standard
specified by laws and regulations; the unplanned shutdown of environmental protection shall be
managed as that of production unit, in case of shutdown for more than four hours, report to the quality,
environmental protection and security department of the company to be put on records and implement
the emergency plan of production unit at the same time to ensure the up-to-standard discharge of
wastewater and waste gas. Organize technical force to strive to make technological breakthrough for
environmental protection unit to ensure the effective operation of environmental protection device.
      Since 2016, the comprehensive qualified rate of internal wastewater monitoring of the company
has always been 100%; except for the VCM recovery flue of Tianyuan Chemical Plant, the flue
                                                 45 / 95
                                            2016 Annual Report
monitoring comprehensive qualified rate of others is 100%. The comprehensive qualified rate of
rainwater discharge monitoring is 100%. The environmental protective on-line monitoring instrument
for inorganic wastewater runs well, the qualification rate of on-line data transmission is 100% and the
transmission rate is 98% (indicator > 80%).
     Promoted the discharge reduction of VOCs, strengthened the management and control of startup
and shutdown of production and the production site and reduced fugitive emission to further cut down
the pollutant discharge from the source. As for VOCs discharge reduction, the Company has conducted
leakage detection and repair (LDAR), quarterly detection and repair and EDC loading exhaust gas
collection facility reconstruction, and the wastewater silo tail gas recovery project has been carried out
as planned. On Dec. 14, 2016, Shanghai Academy of Environmental Sciences organized relevant
technical experts to hold the technical verification and investigation meeting for special support funds of
Shanghai Industrial VOCs emission reduction and enterprise pollution control project in Huasheng
Chemical Plant and Tianyuan Chemical Plant of the Company. After one days’ material examination
and on-site inspection, the assessment of the Company for applying for special support fund for
Shanghai industrial VOCs emission enterprises pollution control project passed.
(IV) Other information
□Applicable √Not applicable
XVIII. Convertible bond of the Company
(I) Convertible bond issuing
□Applicable √Not applicable
(II) Information about the convertible bond holder and guarantor in reporting period
□Applicable √Not applicable
(III) Changes of convertible bond in reporting period
□Applicable √Not applicable
Information about cumulative shares transfer of convertible bond in reporting period
□Applicable √Not applicable
(IV) Previous adjustments of conversion price
□Applicable √Not applicable
(V) Liabilities, credit change and cash arrangement for debt repayment in future years
□Applicable √Not applicable
(VI) Other information about convertible bond
□Applicable √Not applicable
 Section VIChanges of Ordinary Shares and Particulars of Shareholders
I. Changes of ordinary shares
(I) Changes of ordinary shares
1. Changes of ordinary shares
In the reporting period, the total number and share structure of the ordinary share were not changed.
2. Description of the changes in ordinary shares
√Applicable □Not applicable
     On July 28, 2016, to support and participate in the establishment of Shanghai state-owned assets
flow platform, Shanghai Huayi (Group) Company purchased Shanghai state-owned enterprises ETF
shares with 34,692,000 Chlor-Alkali shares (accounting for 5.16% of total equity of Huayi Group). After
such exchange and purchase, the direct shareholding ratio of Shanghai Huayi (Group) Company reduced
from 50.29% to 47.29%.
                                                  46 / 95
                                              2016 Annual Report
3. Impact of changes of ordinary shares on the earnings per share and net asset value per share
in last year and the latest period (if any)
□Applicable √Not applicable
4. Other content deemed necessary by the Company to be disclosed or required by the securities
regulatory institution to be disclosed
□Applicable √Not applicable
(II) Changes of the shares limited to be sold
□Applicable √Not applicable
II. Issuing and listing of securities
(I) Securities issuing in the reporting period
□Applicable √Not applicable
Note on the securities issuing in the reporting period (for bonds with different interest rates, state
respectively)
□Applicable √Not applicable
(II) Changes of the total number of the ordinary shares and structure of the shareholders and
     changes of the structure of the Company’s assets and liabilities
□Applicable √Not applicable
(III) Existing internal staff shares
□Applicable √Not applicable
III. Particulars of the shareholders and the actual controller
(I)       Total number of shareholders
Total number of ordinary shareholders as of end of the reporting                                          85,244
period
Total number of ordinary shareholders at end of the previous month                                        85,677
before the disclosing date of the annual report
(II) Top 10 shareholders, top 10 holders of tradable shares (or shareholders not under restricted
     sales condition)
                                                                                     Unit: share
                                                Top 10 shareholders
                                                                               Shares      Pledged or
                                    Increase or    Shares held                  with      frozen status        Nature
                                    decrease in    at end of the   Proport    restrict                           of
 Name of shareholder (in full)
                                   the reporting     reporting     ion (%)    ed sales   Share    Numb        sharehol
                                      period           period                 conditi    status    er           der
                                                                                 on
Shanghai Huayi (Group)              -34,691,900    546,900,447        47.29          0                    0   State
Company                                                                                                       owned
                                                                                         None
                                                                                                              legal
                                                                                                              person
SCBHK A/C BBH S/A                              0      7,859,532        0.68         0                     0   Overseas
VANGUARD EMERGING                                                                                             legal
                                                                                         None
MARKETS STOCK INDEX                                                                                           person
FUND
Central Huijin Asset                           0      7,438,100        0.64         0                     0   State
Management Limited Liability                                                                                  owned
                                                                                         None
Company                                                                                                       legal
                                                                                                              person
                                                    47 / 95
                                             2016 Annual Report
Industrial and Commercial            6,526,623       6,526,623       0.56          0                 0   Unknow
Bank of China Co., Ltd.-                                                                                n
                                                                                       None
China Securities Shanghai
State-owned Enterprises ETF
VANGUARD TOTAL                         668,901       4,921,701       0.43          0                 0   Overseas
INTERNATIONAL STOCK                                                                    None              legal
INDEX FUND                                                                                               person
Miao Guoqing                          -730,000       3,000,000       0.26          0                 0   Domesti
                                                                                       None              c natural
                                                                                                         person
TICO Trust Corporation               2,956,790       2,956,790       0.26          0                 0   Unknow
Limited - Qingshan No. 1                                                                                n
                                                                                       None
structured securities investment
assembled funds trust plan
Fang Jianwei                          -651,781       2,751,206       0.24          0                 0   Domesti
                                                                                       None              c natural
                                                                                                         person
Bank of China Wuxi Branch                     0      2,605,981       0.23          0                 0   State
                                                                                                         owned
                                                                                       None
                                                                                                         legal
                                                                                                         person
ISHARES CORE MSCI                    1,157,500       2,441,900       0.21          0                 0   Overseas
EMERGING MARKETS ETF                                                                   None              legal
                                                                                                         person
                          Holdings of top 10 shareholders without restricted sales condition
                                                       Number of                 Type and number of shares
                                                     shares without
               Name of shareholder
                                                    restricted sales           Type                 Number
                                                       condition
Shanghai Huayi (Group) Company                         546,900,447            A share                  546,900,447
SCBHK A/C BBH S/A VANGUARD                                7,859,532                                      7,859,532
EMERGING MARKETS STOCK INDEX                                                  B share
FUND
Central Huijin Asset Management Limited                   7,438,100                                      7,438,100
                                                                              A share
Liability Company
Industrial and Commercial Bank of China Co.,              6,526,623                                      6,526,623
Ltd.-China Securities Shanghai State-owned                                   A share
Enterprises ETF
VANGUARD TOTAL INTERNATIONAL                              4,921,701                                      4,921,701
                                                                              B share
STOCK INDEX FUND
Miao Guoqing                                              3,000,000           B share                    3,000,000
TICO Trust Corporation Limited - Qingshan                2,956,790                                      2,956,790
No. 1 structured securities investment assembled                              A share
funds trust plan
Fang Jianwei                                              2,751,206           B share                    2,751,206
Bank of China Wuxi Branch                                 2,605,981           A share                    2,605,981
ISHARES CORE MSCI EMERGING                                2,441,900                                      2,441,900
                                                                              B share
MARKETS ETF
Note on the related relation or concerted actions   The Company’s shares have all been tradable since November
for above shareholders                              12, 2009, and none of the shareholder is under restricted sales
                                                    condition. It is unknown to the Company whether there is
                                                    related relation or the concerted actor specified in the
                                                    Management Method on Information Disclosure for
                                                    Shareholding Change of the Shareholders of Listed Companies.
Holdings of top 10 shareholders with restricted conditions and the restricted conditions
□Applicable √Not applicable
                                                   48 / 95
                                            2016 Annual Report
(III) Strategic investors or general legal person become top 10 shareholders due to rights issue
□Applicable √Not applicable
IV. Particulars of the controlling shareholder and the actual controller
(I) Particulars of the controlling shareholder
1 Legal person
√Applicable □Not applicable
Name                                     Shanghai Huayi (Group) Company
Unit principal or legal representative   Liu Xunfeng
Date of establishment                    Jan. 23, 1997
Main business                            Operation and management of state-owned assets within authorized
                                         range, investment on industry, manufacture and sale for chemical
                                         and medical products and equipment, installation, maintenance and
                                         contracted service for projects of chemical and medical equipment.
Shares held in other domestic or         During the reporting period, Shanghai Huayi (Group) Company
overseas listed companies during the     held 69.79% equity interest of Shanghai Huayi Group Co., Ltd and
reporting period                         31.53% equity interest of Shanghai 3F New Material Co., Ltd.
2 Natural person
□Applicable √Not applicable
3 Special description of nonexistence of controlling shareholder in the Company
□Applicable √Not applicable
4 Index and dates of the changes of controlling shareholders in reporting period
□Applicable √Not applicable
5 Block diagram of property and control relations between the Company and controlling
    shareholder
√Applicable □Not applicable
(II) Particulars of the actual controller
1 Legal person
√Applicable □Not applicable
Name                                      State-owned Assets Supervision and Administration Commission
                                                       of Shanghai Municipal Government
                                                  49 / 95
                                        2016 Annual Report
2 Natural person
□Applicable √Not applicable
3 Special description of nonexistence of actual controller in the Company
□Applicable √Not applicable
4 Index and dates of the changes of actual controller in reporting period
□Applicable √Not applicable
5 Block diagram of property and control relations between the Company and actual controller
√Applicable □Not applicable
6 Actual controller controls the Company through trust or other assets management modes
□Applicable √Not applicable
(III) Other information about the controlling shareholder and actual controller
□Applicable √Not applicable
V. Legal person shareholders with the holdings more than 10%
□Applicable √Not applicable
VI. Note on the limitation of shares for reduction
□Applicable √Not applicable
                   Section VII       Particulars of Preferred Shares
□Applicable √Not applicable
                                             50 / 95
                                                                       2016 Annual Report
               Section VIII Particulars of the Directors, Supervisors, Senior Executives and Staff Members
I. Changes in shareholding and particulars of rewards
(I) Particulars of Directors, Supervisors and senior executives (including the ones leaving post during the reporting period)
√Applicable □Not applicable
                                                                                                                                                        Unit: share
                                                                                                                                       Reward got       Get reward
                                                                                                                                         from the        from the
                                                                              Shares        Shares                                      Company         Company's
                Position                      Start date of   End date of   held at the     held at   Increase or      Reason of        during the     related party
  Name                        Gender    Age
                 (note)                       office term     office term   beginning       the end    decrease         change          reporting          or not
                                                                             of year        of year                                       period
                                                                                                                                      (RMB'0000)
                                                                                                                                       (before tax)
Huang        Chairman of      Male     58     04-25-2016      04-25-2019         1,000        1,000             0                                  0   Yes
Dailie       the board
Zhang        Director,        Male     49     04-25-2016      04-25-2019        10,000       10,000             0                             72.40    No
Weimin       general
             manager
Wang Wei     Director,        Male     48     04-25-2016      04-25-2019              0           0             0                             61.50    No
             deputy party
             secretary
Li Ning      Director         Female   49     04-25-2016      04-25-2019             0            0             0                                 0    Yes
Yu Zhaojun   Employee         Male     58     04-25-2016      04-25-2019         2,000        2,000             0                             53.90    No
             representative
             director
Zhang        Outside          Male     46     04-25-2016      04-25-2019         1,000            0        -1,000   Sold      1000               10    No
Wenlei       director                                                                                               shares       on
                                                                                                                    secondary
                                                                                                                    market at RMB
                                                                                                                    15.72Yuan/share
Shao         Independent      Male     52     04-25-2016      04-25-2019              0           0             0                                10    No
Zhengzhong   director
Wang         Independent      Male     55     04-25-2016      04-25-2019              0           0             0                                 5    No
Jinshan      director
Zhao Ziye    Independent      Male     37     04-25-2016      04-25-2019              0           0             0                                 5    No
                                                                            51 / 95
                                                                  2016 Annual Report
              director
Gu Lili       Chairman of      Male     45   04-25-2016   04-25-2019             0        0    0      0    Yes
              supervisory
              committee
Zhang Hu      Supervisor       Male     47   04-25-2016   04-25-2019             0        0    0       0   Yes
Tang Liang    Supervisor       Male     46   04-25-2016   04-25-2019             0        0    0   40.21   No
Zhou Mei      Employee         Female   48   04-25-2016   04-25-2019             0        0    0   34.92   No
              representative
              supervisor
Zhang         Employee         Male     48   04-25-2016   04-25-2019             0        0    0   37.21   No
Guohua        representative
              supervisor
Cao Jinrong   CFO              Male     41   04-25-2016   04-25-2019        1,000      1,000   0   48.32   No
Yuan          Deputy           Male     48   04-25-2016   04-25-2019        1,000      1,000   0   56.31   No
Maoquan       general
              manager
Dong Yan      Secretary of     Female   44   04-25-2016   04-25-2019        1,000      1,000   0   47.03   No
              the board of
              directors
Wang          General          Male     54   04-25-2016   04-25-2019        1,000      1,000   0   64.43   No
Linzao        manager
              assistant
Hu            Former           Male     61   12-20-2012   04-25-2016        3,000      3,000       41.15   No
Yongkang      director,
              deputy Party
              secretary
Wang          Former           Male     50   12-20-2012   04-25-2016        1,000      1,000          0    Yes
Zengjin       director
Li            Former           Male     42   12-20-2012   04-25-2016             0        0           5    No
Zengquan      independent
              director
Zhang         Former           Male     54   12-30-2014   04-25-2016             0        0           5    No
Guoming       independent
              director
Chen Yao      Former           Male     53   09-17-2013   04-25-2016             0        0           0    Yes
              chairman of
              supervisory
                                                                       52 / 95
                                                                         2016 Annual Report
               committee
Yu Bin         Former         Male     42        12-20-2012     04-25-2016         1,000       1,000                                                 0   Yes
               supervisor
Wang           Former         Female   55        12-20-2012     04-25-2016        10,000       2,000         -8,000   Sold      8000            21.94    No
Mingchun       supervisor                                                                                             shares       on
                                                                                                                      secondary
                                                                                                                      market at RMB
                                                                                                                      13.56Yuan/share
Xu Peiwen      Former         Male     60        12-20-2012     04-25-2016         7,000       7,000              0                             44.58    No
               secretary of
               the board of
               directors
   Total              /          /          /          /             /                                                       /                 663.90          /
   Name                                                                        Main work experience
Huang Dailie    He used to be the Deputy Party secretary, executive Director and general manager of Shanghai Huayi Group Enterprise Development Co., Ltd. and
                manager of Enterprise Adjustment Department of Huayi Group. Now he is the director and general manager of Shanghai Huayi (Group) Company;
                director, deputy secretary of CPC Committee and chairman of trade union of Shanghai Huayi Co., Ltd.; Chairman of the Board of Shanghai Chlor-Alkali
                Chemical Co., Ltd.
Zhang           He used to be the assistant of general manager and deputy general manager of Shanghai Huayi Acrylic Acid Co., Ltd., deputy general manager of economic
Weimin          operating department of Shanghai Huayi (Group) Company and general manager of safety & environmental protection department and chief of armed
                security department of Shanghai Huayi (Group) Company. Now he is the Director, general manager and deputy secretary of Party Committee of Shanghai
                Chlor-Alkali Chemical Co., Ltd.
Wang Wei        He used to be the deputy general manager of human resources department of Shanghai Huayi (Group) Company and the deputy general manager of
                Shanghai Huayi Investmetn Co., Ltd. Now he is the director and deputy secretary (executive) of Party Committee of Shanghai Chlor-Alkali Chemical Co.,
                Ltd.
Li Ning         She used to be the general manager of financial department of Shanghai Huayi (Group) Company. Now she is the general manager of capital operation
                department of Shanghai Huayi Group Co., Ltd., the director of Shanghai 3F New Materials Co., Ltd and the director of Shanghai Chlor-Alkali Chemical
                Co., Ltd.
Yu Zhaojun      He used to be the Party secretary of PVC factory of Shanghai Chlor-Alkali Chemical Co., Ltd. Now he is the employee representative director, Deputy
                Party secretary, secretary of Party discipline committee, chairman of trade union and party secretary of department office of Shanghai Chlor-Alkali
                Chemical Co., Ltd.
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                                                                          2016 Annual Report
Zhang Wenlei   He used to be deputy chief of technical operation department, chief of general department and deputy secretary general of China Chlor-Alkali Industry
               Association. Now he is vice chairman and secretary general of China Chlor-Alkali Industry Association, routine councilor of China Petrochemical Industry
               Association, vice chairman of China Chemical Environment Protection Association, Independent Director of Tangshan Sanyou Chemical Group Co., Ltd.
               and outside Director of Shanghai Chlor-Alkali Chemical Co., Ltd.
Shao           He used to be the lecturer of material science department of Fudan University, the lecturer, associate professor, subdean and professor of polymer science
Zhengzhong     department of Fudan University and associate professor of biology research institute of Aarhus University in Denmark. Now he is the doctoral tutor in
               polymer science department of Fudan University. He is also the councilor of Shanghai Municipal Chemistry & Chemical Engineering Association,
               subeditor of Journal of Materials Chemistry-B of Britain Royal Society of Chemistry (RSC) and member of multiple academic committees and the
               Independent Director of Shanghai Chlor-Alkali Chemical Co., Ltd.
Wang Jinshan   He used to be the Vice Chairman of the Board of Directors and President of Nanjing First-O-Lite Co., Ltd.; Chairman of the Board of Directors and
               President of Nanjing First New Materials Co., Ltd. Now he is the director and general manager of Nanjing First-O-Lite Co., Ltd. He is the Independent
               Director of Shanghai Chlor-Alkali Chemical Co., Ltd.
Zhao Ziye      He used to be the associate professor of Shanghai University of Finance and Economics, the Independent Director of Anshan No. 1 Engineering Co., Ltd
               and the Independent Director of Shanghai Jinshan Development Co., Ltd. as well as the Independent Director of Shanghai Chlor-Alkali Chemical Co., Ltd.
Gu Lili        He used to be the vice secretary of discipline inspection commission and general manager of supervision and examination department of Shanghai Huayi
               (Group) Company. Now he is the vice president of Shanghai Huayi Group Co., Ltd. and the Chairman of Supervisory Committee of Shanghai Chlor-Alkali
               Chemical Co., Ltd.
Zhang Hu       He used to be the CFO of Shanghai Huayi Acrylic Acid Co., Ltd. Now he is the deputy general manager of finance department of Shanghai Huayi Group
               Co., Ltd. and the supervisor of Shanghai Chlor-Alkali Chemical Co., Ltd.
Tang Liang     He used to be the manager of technical development department of Shanghai Chlor-Alkali Chemical Co., Ltd. Now he is the manager of investment
               planning department of Shanghai Chlor-Alkali Chemical Co., Ltd. and the supervisor of Shanghai Chlor-Alkali Chemical Co., Ltd.
Zhou Mei       She used to be the assistant manager of the supervision, examination and security department of Shanghai Chlor-Alkali Chemical Co., Ltd. Now she is the
               manager of armed security department and vice-chairman of trade union of Shanghai Chlor-Alkali Chemical Co., Ltd. as well as the supervisor of Shanghai
               Chlor-Alkali Chemical Co., Ltd.
Zhang          He used to be the director of party office and the deputy party secretary of department office of Shanghai Chlor-Alkali Chemical Co., Ltd. Now he is the
Guohua         regional secretary of party committee of Shanghai Chlor-Alkali Chemical Co., Ltd. in Caojing, and the supervisor of Shanghai Chlor-Alkali Chemical Co.,
               Ltd.
Cao Jinrong    He used to be the deputy manager of assets department of Shanghai Huayi (Group) Company and deputy general manager of Shanghai Huayi Group
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                                                                          2016 Annual Report
                Investment Co., Ltd. Now he is CFO of Shanghai Chlor-Alkali Chemical Co., Ltd.
Yuan            He used to be the assistant chief and routine deputy chief of technical center of Shanghai Chlor-Alkali Chemical Company and deputy chief engineer of
Maoquan         Shanghai Chlor-Alkali Chemical Co., Ltd. Now he is the deputy general manager of Shanghai Chlor-Alkali Chemical Co., Ltd.
Dong Yan        She used to be assistant manager, manager, deputy chief economist of the human resource department of Shanghai Chlor-Alkali Chemical Co., Ltd. Now
                she is the Secretary of the Board of Directors and deputy chief economic engineer of Shanghai Chlor-Alkali Chemical Co., Ltd.
Wang Linzao     He used to be the manager of production director department of Shanghai Chlor-Alkali Chemical Co., Ltd., deputy general manager of Shanghai Tianyuan
                Huasheng Chemical Co., Ltd., secretary of CPC general branch and factory director of Huasheng Chemical Plant, and production controller of Shanghai
                Chlor-Alkali Chemical Co., Ltd. Now he is the employee representative Supervisor and assistant of general manager of Shanghai Chlor-Alkali Chemical
                Co., Ltd.
Hu Yongkang     He used to be general manager, Party secretary and Chairman of the Board of Shanghai Wujin Chemical Co., Ltd. and director, Party secretary and deputy
                general manager of Shanghai Chlor-Alkali Chemical Co., Ltd.
Wang Zengjin    He used to be the director of Shanghai Chlor-Alkali Chemical Co., Ltd.
Li Zengquan     He used to be the independent director of Shanghai Chlor-Alkali Chemical Co., Ltd.
Zhang           He used to be the independent director of Shanghai Chlor-Alkali Chemical Co., Ltd.
Guoming
Chen Yao        He used to be the Chairman of Supervisory Committee of Shanghai Chlor-Alkali Chemical Co., Ltd.
Yu Bin          He used to be the supervisor of Shanghai Chlor-Alkali Chemical Co., Ltd.
Wang            He used to be deputy Party secretary, secretary of Party disciplinary committee and chairman of trade union of PVC factory of Shanghai Chlor-Alkali
Mingchun        Chemical Co., Ltd., vice chairman of trade union of Shanghai Chlor-Alkali Chemical Co., Ltd. and secretary of CPC committee of PVC factory. Now he is
                the employee representative Supervisor of Shanghai Chlor-Alkali Chemical Co., Ltd.
Xu Peiwen       He used to be the Board Secretary of Shanghai Tianyuan (Group) Co., Ltd., and the Board Secretary and chief of the Board Secretary's office of Shanghai
                Chlor-Alkali Chemical Co., Ltd.
Presentation of other events
√Applicable □Not applicable
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                                                                        2016 Annual Report
On March 25, 2016, the 28th Conference of the Eighth Board of Directors and the 19th Conference of the Eighth Board of Supervisors reviewed and passed the
proposal for general selection of directors and supervisors, the selections had been conducted on 2015 Annual Shareholders’ Meeting held on Apr. 25, 2016, and the
employee directors, employee supervisor were selected on the joint conference of the congress of workers and staff of the Company. On Apr. 25, 2016, the
Chairman of Board of Directors and Chairman of Supervisory Committee were elected on the first conference of the Ninth Board of Director and Board of
Supervisors of the Company, the new session of senior executives were engaged; relevant announcements had been disclosed on the website (www.sse.com.cn) of
Shanghai Stock Exchange on Apr. 26, 2016.
(II) Equity incentive awarded to the Director and senior executives during the reporting period
□Applicable √Not applicable
II. Particulars of Directors, Supervisors and senior executives (including the ones leaving post during the reporting period)
(I) Position in shareholder’s unit
√Applicable □Not applicable
               Name                          Name of shareholder’s unit                     Position in shareholder's unit                 Start date of office term
Huang Dailie                           Shanghai Huayi (Group) Company              Director, general manager                           12-02-2015
(II) Position in other unit
√Applicable □Not applicable
               Name                                   Name of other unit                               Position in other unit               Start date of office term
Zhang Weimin                            Shanghai Huntsman Polyurethane Co., Ltd.             Director, Vice chairman of the board of   08-20-2015
                                                                                             directors
Zhang Weimin                            Shanghai Huayi Group Finance Co., Ltd.               Director                                  08-20-2015
Zhang Weimin                            Shanghai Chlor-Alkali New Materials Trading          Executive director                        02-18-2016
                                        Co., Ltd.
Wang Wei                                Shanghai Chlor-Alkali Machinery Co., Ltd.            Inner Mongolia Junzheng Tianyuan          12-18-2015
                                                                                             chemical Co., Ltd.
Wang Wei                                Shanghai Tianyuan (Group) Co., Ltd.                  Director                                  12-18-2015
Zhang Wenlei                            Tangshan Sanyou Chemical Group Co., Ltd.             Independent director                      09-15-2014
Wang Linzao                             Shanghai Jinyuan Tap Water Co., Ltd.                 Director                                  07-01-2011
Wang Linzao                             Shanghai Lianheng Isocyanic Acid Grease Co.,         Director                                  01-10-2016
                                        Ltd.
Cao Jinrong                             Shanghai Ruisheng Enterprise Co. Ltd.                Executive director                        03-01-2012
Cao Jinrong                             Inner Mongolia Junzheng Tianyuan Chemical            Chief supervisor                          12-14-2016
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                                                                        2016 Annual Report
                                       Co., Ltd.
Dong Yan                               Inner Mongolia Junzheng Tianyuan Chemical             Director                             12-14-2016
                                       Co., Ltd.
Dong Yan                               Shanghai Huntsman Polyurethane Co., Ltd.              Director                             01-11-2016
Dong Yan                               Shanghai LvWei Plasitics Co., Ltd.                    Director                             01-11-2016
Tang Liang                             Inner Mongolia Junzheng Tianyuan Chemical             Director                             12-14-2016
                                       Co., Ltd.
III. Rewards of the Directors, Supervisors and senior executives
√Applicable □Not applicable
Decision-making process for the rewards of the     The rewards of the Directors, Supervisors and senior executives shall be decided by the Company's salary &
Directors, Supervisors and senior executives       examination committee.
Basis for deciding the rewards of the Directors,   Issued according to the Examination Measures for the Reward of the Directors, Supervisors and senior executives.
Supervisors and senior executives
Actual issuing of the rewards of the Directors,    The Board of Directors decided the reward standard for the Directors, Supervisors and Senior Executives getting
Supervisors and senior executives                  salary from the Company this year and paid the rewards monthly in accordance with the Company's unified salary
                                                   management system and the annual performance review by the salary & checking committee of the Board of
                                                   Directors. The standard for allowance to Independent Directors was examined and passed by the shareholders'
                                                   meeting.
Total reward got actually by all the Directors,    RMB 6,639,000Yuan
Supervisors and Senior Executives at end of the
reporting period
IV. Changes of the Directors, Supervisors and senior executives
√Applicable □Not applicable
      Name                 Position             Change                                                 Reason of change
Li Ning             Director                 Elected          Mrs. Li Ning was elected as the director of the Company by voting on 2015 Annual Shareholders’
                                                              Meeting On Apr. 25, 2016 and related announcement was disclosed on the website of Shanghai Stock
                                                              Exchange on Apr. 26, 2016.
Wang Wei            Director                 Elected          Mr. Wang Wei was elected as the director of the Company by voting on 2015 Annual Shareholders’
                                                              Meeting On Apr. 25, 2016 and related announcement was disclosed on the website of Shanghai Stock
                                                              Exchange on Apr. 26, 2016.
Wang Jinshan        Independent director     Elected          Mr. Wang Jinshan was elected as the independent director of the Company by voting on 2015 Annual
                                                              Shareholders’ Meeting On Apr. 25, 2016 and related announcement was disclosed on the website of
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                                                                     2016 Annual Report
                                                          Shanghai Stock Exchange on Apr. 26, 2016.
Zhao Ziye       Independent director      Elected         Mr. Zhao Ziye was elected as the independent director of the Company by voting on 2015 Annual
                                                          Shareholders’ Meeting On Apr. 25, 2016 and related announcement was disclosed on the website of
                                                          Shanghai Stock Exchange on Apr. 26, 2016.
Gu Lili         Chairman            of    Elected         Mr. Gu Lili was elected as the shareholder representative supervisor by voting on 2015 Annual
                supervisory committee                     Shareholders’ Meeting On Apr. 25, 2016 and was elected as the Chairman of Supervisory Committee after
                                                          examination and pass on the first meeting of the 9 th Board of Supervisors on Apr. 25, 2016. Related
                                                          announcements was disclosed on the website of Shanghai Stock Exchange on Apr. 26, 2016.
Zhang Hu        Supervisor                Elected         Mr. Zhang Hu was elected as the supervisor of the Company by voting on 2015 Annual Shareholders’
                                                          Meeting On Apr. 25, 2016, and related announcement was disclosed on the website of Shanghai Stock
                                                          Exchange on Apr. 26, 2016.
Tang Liang      Supervisor                Elected         Mr. Tang Liang was elected as the supervisor of the Company by voting on 2015 Annual Shareholders’
                                                          Meeting On Apr. 25, 2016, and related announcement was disclosed on the website of Shanghai Stock
                                                          Exchange on Apr. 26, 2016.
Zhou Mei        Employee supervisor       Elected         Elected democratically by staff representatives on the 9 th meeting of the 3rd Congress of Workers and
                                                          Staff. Related announcement had bee disclosed on the website of Shanghai Stock Exchange on Mar. 9,
                                                          2016.
Zhang Guohua    Employee supervisor       Elected         Elected democratically by staff representatives on the 9 th meeting of the 3rd Congress of Workers and
                                                          Staff. Related announcement had bee disclosed on the website of Shanghai Stock Exchange on Mar. 9,
                                                          2016.
Dong Yan        Secretary of the board    Engaged         Engaged by the first meeting of the 9th Board of Directors of the Company on Apr. 25, 2016.
                of directors
Wang Linzao     General        manager    Engaged         Engaged by the first meeting of the 9th Board of Directors of the Company on Apr. 25, 2016.
                assistant
Hu Yongkang     Director, deputy party    Left the post   Expiration of the term of office.
                secretary
Wang Zengjin    Director                  Left the post   Expiration of the term of office.
Li Zengquan     Independent director      Left the post   Expiration of the term of office.
Zhang Guoming   Independent director      Left the post   Expiration of the term of office.
Chen Yao        Chairman             of   Left the post   Expiration of the term of office.
                supervisory committee
Yu Bin          Supervisor                Left the post   Expiration of the term of office.
Wang Mingchun   Supervisor                Left the post   Expiration of the term of office.
Xu Peiwen       Secretary of the board    Left the post   Expiration of the term of office.
                of directors
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                                                                           2016 Annual Report
V. Punishment by the securities regulatory authorities in recent 3 years
□Applicable √Not applicable
VI. Employees of the parent company and main subsidiaries
(I) Particulars of employees
Number of in-service employees of the parent company
Number of in-service employees of the main subsidiaries
Total number of in-service employees
Number of retired employees borne by the parent company and main subsidiaries                                                                                       4,255
                                                                        Profession structure
                                 Type of profession                                                                    Number of people
                                Production personnel
                                     Sales people
                                 Technical personnel
                                  Finance personnel
                              Administrative personnel
                                        Total
                                                                         Educational status
                              Type of educational status                                                               Number of people
Bachelor or higher
Junior college
Senior high school (technical secondary school)
Lower than senior high school
                                        Total
(II) Salary policy
√Applicable □Not applicable
The Company implements the Position Level Salary Measures of Shanghai Chlor-Alkali Chemical Co., Ltd.
(III) Training plan
√Applicable □Not applicable
In 2016, the Company made employee training for 4797 men-times. The training includes 3987 men-times for front-line employees, accounting for 83.11% in total
training. The main training content: post operation training (on-the-job training and job-transfer training), special work training (including the training for obtaining
certificate of post), QHSE training, staff skill and skill level training (including skill level and training for employment with certificate), HSE entire staff training,
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                                                                          2016 Annual Report
team leader training, series training of labor union, degree program training, professional qualification improvement training and young employee cultivation. The
training includes 810 men-times for non front-line employees, accounting for 16.89% in total training. Main training content: professional technical training at the
engineers advanced study and training base in party school, engineering training for professional technical personnel, special topic lecture, management and strategy
course training, title and further education training, QHS training and HSE entire staff training.
(IV) Labor outsourcing
□Applicable √Not applicable
VII. Other
□Applicable √Not applicable
                                                           Section IXCompany Governance
I. Introduction to Company governance
√Applicable□Not applicable
      The Company kept on improving the Company's corporate governance structure, regulating its operation and strengthening its internal management strictly in
accordance with the provisions and requirements of the Company Law, Securities Law and the Management Principle of the Listed Companies and the files for
company's governance issued by China Securities Regulatory Committee and Shanghai Stock Exchange.
      1. About the shareholders and the shareholders' meeting
      The Company convened the shareholders' meeting strictly according to relevant provisions and procedures in the Articles of Association and the Rules of
Procedure of the Shareholders' Meeting. It can ensure the equal position and lawful rights and interests of all the shareholders, especially the middle and small
shareholders, let them enjoy and exercise fully their rights. All of the Company's related transactions have been made strictly according to the principle of fair and
equitable, the pricing principle are disclosed to the public, and the related Director and related shareholders avoided the voting.
      2. Controlling shareholder and the listed Company
      The controlling shareholder exercises its right and bears the obligation according to law, not intervening directly or indirectly the Company's decision-making
and operating activities without the authority of the shareholders' meeting. The Company and the controlling shareholder make Five Independence, i.e. assets,
business, organization, finance and personnel. The Company's Board of Directors, Supervisory Committee and the internal institutions can all make operation
independently to ensure the Company making and implementing the significant decisions independently.
      3. Directors and the Board of Directors
      The Company elects the Directors strictly in accordance with the procedure specified in the Company Law and Articles of Association, the Board of Directors
is of scientific composition, clear responsibilities and perfect systems. The Company establishes four special committees, i.e. strategy, audit, nomination and salary
& checking, under the Board of Directors, and all these committees can work earnestly and diligently strictly in accordance with the Articles of Association and the
Work Enforcement Regulations of the Special Committees under the Board of Directors. For the Company's significant decisions and investments all the Directors
can well play their professional role, raise their professional opinions and proposals, provide great support to the Company's scientific policy-making, and perform
their duties loyally, cautiously, earnestly and diligently.
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                                                                         2016 Annual Report
     4. Supervisors and the Supervisory Committee
     The Company's Supervisory Committee elects the Supervisors strictly in accordance with the procedure specified in the Company Law and the Articles of
Association, and the convening procedure conforms to the Rules of Procedure of the Supervisory Committee and has intact and true meeting record. The Company's
Supervisors can perform earnestly their duties, make supervision independently on the Company's finance and operation status and the legitimacy and compliance
of the Company's Directors, managers and other senior executives based on the manner of being responsible to all the shareholders, and safeguard the lawful rights
and interests of the Company and the shareholders.
     5. Performance appraisal and incentive and constraint mechanism
     The Company has established and gradually improved the performance appraisal standard and incentive and constraint mechanism for the Directors,
Supervisors and senior executives, and the engagement of the senior executives is open and transparent and meets the requirements of relevant laws and statutes.
     6. Information disclosure and transparence
     The Company has truly, accurately, completely and timely discloses relevant information strictly in accordance with the requirements of relevant laws and
codes and its own Management System on the Information Disclosure Affairs and the internal report system on Significant Information, and ensure all the investors
can obtain effective information equally. In the reporting period, the Company totally completed 4 periodic reports and 22 provisional announcements, making the
investors can learn the status of the Company timely, fairly, accurately and completely.
     7. Management on insider information
     During the reporting period, the Company executed strictly the Management on Registration of the Persons in the Know of Insider Information, got down with
the work on keeping secret of the insider information and required to fill in the record file of the person in the know of the insider information to safeguard the
interest of the shareholders.
If there is significant difference between company governance and the requirements of relevant regulations of China Securities Regulatory Commission; if yes, give
the reason
□Applicable √Not applicable
II. Briefing on the shareholders' meeting
                                                                                  Index on the website specified for carrying
              The meeting                               Convening date                                                            Date for disclosing the resolutions
                                                                                                the resolutions
2015 annual shareholders’ meeting         04-25-2016                             www.sse.com.cn                                04-26-2016
Information about shareholders’ meeting
□Applicable √Not applicable
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                                                                            2016 Annual Report
III. Duty performance of the Directors
(I) Particulars of the Directors for attending the Board meetings and shareholders meeting
                                                                                                                                                        Particulars of
                                                                                                                                                        attending the
                                                                     Particulars of attending the Board Meetings
                                                                                                                                                        shareholders’
                  Independent
   Name of                                                                                                                                                 meeting
                   Director or
   director                                                               Number of          Number of                      Whether not attending
                       not        Number of Board      Number of                                              Number                                      Number of
                                                                          attendances       attendances          of         in person the meeting
                                    meetings in        attendances                                                                                    attendances in the
                                                                            through           through         absence        consecutively for 2
                                    current year        in person                                                                                   shareholders' meeting
                                                                        communication       commitment                           times or not
Huang Dailie      No                              8               8                   0                 0               0   No
Li Ning           No                              6               5                   0                 1               0   No
Zhang Weimin      No                              8               8                   0                 0               0   No
Wang Wei          No                              6               6                   0                 0               0   No
Yu Zhaojun        No                              8               8                   0                 0               0   No
Zhang Wenlei      No                              8               8                   0                 0               0   No
Shao              Yes                             8               8                   0                 0               0   No
Zhengzhong
Wang Jinshan      Yes                             6               6                    0                0               0   No
Zhao Ziye         Yes                             6               6                    0                0               0   No
Explanations for not attending the meeting in person consecutively for 2 times:
□Applicable √Not applicable
Number of Board meetings convened in current year
Incl.: Number of on-site meetings
Number of meetings convened through communication
Number of meetings convened on-site and through communication
(II) Objection of the Independent Directors on relevant events of the Company
□Applicable √Not applicable
(III) Other
□Applicable √Not applicable
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                                                                             2016 Annual Report
IV. Important opinions and proposals raised by the special committees under the Board of Directors while performing their duties in the reporting period,
    and if any objection exists, the details shall be disclosed
√Applicable□Not applicable
     In 2016, the special committee of the Company's Board of Directors, based on the provisions of the Enforcement Regulations of Special Committees under the Board of
Directors, performed their duties earnestly, conducted work actively, gave full play to their own special skills and played active role on the decision-making of the Board of
Directors for significant events. The audit committee could perform its duty earnestly in the work for annual report and relevant work, raised construction suggestions on the
Company's periodic report, internal control systems, asset disposal and related transactions, and supervised the Company to make healthful, stable and rapid development
furthermore. The salary & checking committee convened meeting to check the salary of the senior executives in 2015, and raised the checking plan on the salary of the
senior executives in 2016. The nomination committee convened the meeting to discuss and make proposal for change of the Company's Directors. The Company lay stress
on exerting the knowledge of the special committees under the Board of Directors in specialty and information to promote the decision-making of the Board of Directors
more scientific and more effective.
V. Note of the Supervisory Committee on discovering the Company’s risk
√Applicable□Not applicable
VI. Note of the Company on being unable to ensure independence and self operation capability in business, assets, organization and finance with the
    controlling shareholder
□Applicable √Not applicable
In case of the existence of horizontal competition, the corresponding solutions, job schedule and subsequent wok plan of the Company
□Applicable √Not applicable
VII.      Establishing and implementing the check mechanism and incentive mechanism for the senior executives in the reporting period
√Applicable□Not applicable
     The Company implements the Checking Method on the Salary of Senior Executives of the Company, and the salary & checking committee under the Board of
Directors made the annual performance review, decided the reward standard for the Directors, Supervisors and Senior Executives getting salary from the Company
and paid the rewards monthly.
VIII.     Whether disclose the internal control self-assessment report or not
√Applicable□Not applicable
                                                                                   63 / 95
                                                                           2016 Annual Report
For details of the 2016 Internal Control Self-assessment Report of Shanghai Chlor-Alkali Chemical Co., Ltd., see relevant announcement in the website of Shanghai
Stock Exchange www.sse.com.cn on March 30, 2017.
Note on significant deficiencies in the internal control during the reporting period
□Applicable √Not applicable
IX. Note on relevant status of the auditor's report for internal control
√Applicable□Not applicable
For details of the Auditor’s Report for Internal Control of Shanghai Chlor-Alkali Chemical Co., Ltd. in 2016, see relevant announcement in the website of Shanghai
Stock Exchange www.sse.com.cn on March 30, 2017.
Whether disclose the auditor’s report for internal control or not: yes
X. Other
□Applicable √Not applicable
                                                   Section X Particulars of the Company’s Bonds
□Applicable √Not applicable
                                                                                 64 / 95
                                         2016 Annual Report
                                Section XIFinancial Report
I.   Auditor’s report
√Applicable □Not applicable
                                                             XKSHBZ [2017] No. ZA11253
To all shareholders of Shanghai Chlor-Alkali Chemical Co., Ltd.,
We have audited the attached financial statements of Shanghai Chlor-Alkali Chemical Co., Ltd.
(hereafter referred to as Chlor-Alkali Chemical), including the consolidated and the Company’s
balance sheets as of Dec. 31, 2016, the consolidated and the Company’s income statements in
2016, the consolidated and the Company’s cash flow statements, the consolidated and the
Company’s statements of changes in owner’s equity and the notes on the financial statements.
I. The responsibility of the management
To prepare the financial statements and make fair presentation in it is the responsibility of the
management of the Company. Such responsibility shall include: (1) to prepare the financial
statements and make fair presentation in them in accordance with the provisions of the enterprise
accounting standard; (2) to design, execute and maintain necessary internal control to prevent the
financial statements from making significant misreport caused by fraud or error.
II. Responsibility of the certified public accountants
Our responsibility is to express audit opinion to the financial statements based on the execution of
the audit work. We have made the audit work in accordance with the provisions in the audit
standard of China certified public accountant. The audit standard of China certified public
accountant requires us to observe the code of professional ethics of China certified public
accountants, plan and execute the audit work and obtain the reasonable assurance for not making
significant misreport in the financial statements
The audit work involves the implementation of audit procedure to obtain the amount of financial
statements and disclosed audit evidences. The selection of the audit procedure depends on the
judgment of the certified public accountants, including the evaluation to the risk of significant
misreport of the financial statements caused by the fraud or error. While making risk evaluation,
the certified public accountant shall consider the internal control related to the preparing of the
financial statements and the fair presentation to design proper audit procedure, but the purpose is
not to express opinion for the effectiveness of the internal control. The audit work shall also
include to evaluate the suitability of the accounting policy selected by the management and the
reasonableness of the accounting estimate and to evaluate the general presentation of the financial
statements.
We believe, the audit evidences we have obtained are adequate and proper and provide basis for
expressing the audit opinion.
                                              65 / 95
                                           2016 Annual Report
III. Audit opinion
We deem that, the financial statements of the Company have been prepared in accordance with the
provisions of the enterprise accounting standard in all significant aspects, and have reflected the
consolidated and the Company's financial status on Dec. 31, 2016 and the consolidated and the
Company’s operating results and cash flow in 2016
      BDO China Shu Lun Pan Certified                        China certified public accountant:
          Public Accountants LLP                                           Gu Xuefeng
                                                  China certified public accountant: Chen Luying
Shanghai China                                                                    March 28, 2017
2. Financial Statement
                             Consolidated Balance Sheet
                                           December 31, 2016
Prepared by: SHANGHAI CHLOR-ALKAL CHEMICAL CO.,LTD
                                                                              Unit: Yuan Currency: RMB
                               Item                                    Note      Closing balance    Opening balance
Current assets
 Cash and cash balances                                                            433,999,695.91        240,425,945.13
 Settlement reserve
 Lent to banks and other financial institutions
 Financial assets at fair value through profit or loss
                                                   66 / 95
                                          2016 Annual Report
                              Item                             Note   Closing balance    Opening balance
 Derivative financial asset
 Notes receivable                                                       448,822,006.32     336,221,352.79
 Accounts receivable                                                    202,272,347.66     259,044,580.24
 Prepayments                                                             50,056,591.51     136,446,799.31
 Insurance Premium receivable
 reinsurance account Receivable
 Reserves for reinsurance contract Receivable
 Interest receivable
 Dividends receivable
 Other receivables                                                          762,159.00        3,561,716.78
 Financial assets purchased under resale agreements
 Inventories                                                            159,466,728.86     384,885,265.71
 Assets classified as held for sale
 Non-current assets due within one year
 Other current assets
 Total current assets                                                 1,295,379,529.26    1,360,585,659.96
Non-current assets:
 Loans and advances
                                                67 / 95
                                       2016 Annual Report
                                Item                        Note   Closing balance    Opening balance
 Available-for-sale financial assets                                 453,209,607.08     424,078,182.70
 Investment held to maturity
 Long-term receivables
 Long-term equity investments                                        365,215,620.38     288,855,432.45
 Investment properties
 Fixed assets                                                      1,978,086,015.56    2,132,521,000.23
 Construction in progress                                             97,570,414.69     305,408,986.91
 Project materials                                                        37,478.63        1,381,336.82
 Disposal of fixed assets
 Productive biological assets
 Oil & gas assets
 Intangible assets                                                   267,521,472.23     281,295,016.13
 Development expenditure                                              17,364,046.98      30,247,277.15
 Goodwill
 Long-term prepaid expenses                                           15,196,164.92      23,460,981.73
 Deferred tax assets                                                      35,696.33          20,529.71
 Other non-current assets
Total non-current assets:                                          3,194,236,516.80    3,487,268,743.83
                                            68 / 95
                                        2016 Annual Report
                               Item                              Note   Closing balance    Opening balance
Total assets                                                            4,489,616,046.06    4,847,854,403.79
Current liabilities:
 Short-term borrowing                                                   1,256,000,000.00     620,000,000.00
 Borrowing from the central bank
 Customer deposits and deposits from banks and other financial
institutions
 Interbank borrowing
 Financial assets measured with fair value and having its
changes accounted in current income and loss
 Derivative financial assets
 Notes payable
 Accounts payable                                                         358,647,789.59     376,955,805.82
 Receipts in advance                                                      243,595,103.99     253,175,587.07
 Financial assets sold for repurchase
 Handling fees and commissions payable
 Employee benefits payable                                                131,471,648.00         780,802.00
 Taxes payable                                                             80,270,216.68      14,824,741.55
 Interest payable                                                           1,955,378.33        2,788,929.31
                                               69 / 95
                                          2016 Annual Report
                               Item                            Note   Closing balance    Opening balance
 Dividends payable                                                        2,724,553.75        2,724,553.75
 Other payables                                                          88,814,552.29     441,394,365.43
 Reinsurance accounts payable
 Reserve for insurance contract
 Acting trading securities
 Acting underwriting securities
 Assets classified as available-for-sale assets
 Non-current liabilities due within one year
 Other current liabilities
Total current liabilities                                             2,163,479,242.63    1,712,644,784.93
Non-current liabilities
 Long-term borrowing
 Bonds payable
 Including: Preferred stock
         Debt sustainability
 Long-term payables                                                     170,000,000.00     645,000,000.00
 Long-term employee benefits payable                                    181,130,000.00     190,880,000.00
 Special payables                                                        11,050,000.00      11,050,000.00
                                                  70 / 95
                                        2016 Annual Report
                                 Item                        Note   Closing balance    Opening balance
 Provisions                                                             1,238,255.07
 Deferred income                                                        6,873,750.00        6,650,100.00
 Deferred tax liabilities                                              14,562,645.00      11,653,477.05
 Other non-current liabilities
Total non-current liabilities                                         384,854,650.07     865,233,577.05
Total liabilities                                                   2,548,333,892.70    2,577,878,361.98
Shareholders' equity:
 Share capital                                                      1,156,399,976.00    1,156,399,976.00
 Other equity instruments
 Including: Preferred stock
          Debt sustainability
 Capital reserve                                                    1,674,270,987.60    1,674,270,987.60
 Less :Treasury stock
 Other Comprehensive Income                                            20,585,420.26      12,317,916.44
 Special reserve
 Surplus reserves                                                      11,329,760.39      11,329,760.39
 General risk reserve
 Retained earnings                                                   -920,865,356.69     -592,773,594.89
                                             71 / 95
                                                2016 Annual Report
                                Item                                   Note         Closing balance         Opening balance
 Total shareholders’ equity attributable to shareholders of the
                                                                                    1,941,720,787.56          2,261,545,045.54
Company
 Minority interests                                                                          -438,634.20          8,430,996.27
Total shareholders’ equity                                                         1,941,282,153.36          2,269,976,041.81
Total liabilities and shareholders’ equities                                       4,489,616,046.06          4,847,854,403.79
Legal representative:   Superintendent responsible for accounting:   Superintendent for accountancy firm:
                        Balance Sheet of Parent Company
                                            December 31, 2016
Prepared by: SHANGHAI CHLOR-ALKAL CHEMICAL CO.,LTD
                                                                               Unit: Yuan     Currency: RMB
                                Item                                    Note        Closing balance         Opening balance
Current assets:
 Cash and cash balances                                                                371,434,054.50           212,133,296.30
 Financial assets at fair value through profit or loss
 Derivative financial assets
 Notes receivable                                                                      256,156,372.62           334,581,352.79
 Accounts receivable                                                                   323,192,407.70           253,571,576.96
 Prepayments                                                                                51,172,870.23       137,481,599.22
 Interest receivable
 Dividend receivable
 Other receivables                                                                           4,509,657.46        10,766,735.59
                                                     72 / 95
                                          2016 Annual Report
                                Item                           Note   Closing balance     Opening balance
 Inventories                                                             155,028,612.34      371,277,788.79
 Assets classified as held for sale
 Non-current assets due within one year                                   20,000,000.00
 Other current assets
Total current assets                                                   1,181,493,974.85    1,319,812,349.65
Non-current assets:
 Available-for-sale financial assets                                     426,458,325.42      413,190,044.22
 Held-to-maturity investments
 Long-term receivables
 Long-term equity investments                                            473,550,440.36      355,444,207.96
 Investment properties
 Fixed assets                                                          1,960,644,705.74    2,111,593,701.25
 Construction in progress                                                 91,697,502.44      302,075,871.66
 Project materials                                                            37,478.63        1,381,336.82
 Disposal of fixed assets
 Productive biological assets
 Oil & gas assets
 Intangible assets                                                       254,644,610.18      259,886,963.38
 Development expenditure                                                  17,364,046.98       30,247,277.15
 Goodwill
 Long-term prepaid expenses                                               15,196,164.92       23,152,249.71
 Deferred tax assets
 Other non-current assets                                                                     20,000,000.00
Total non-current assets                                               3,239,593,274.67    3,516,971,652.15
Total assets                                                           4,421,087,249.52    4,836,784,001.80
Current liabilities:
 Short-term borrowing                                                  1,256,000,000.00      620,000,000.00
                                               73 / 95
                                               2016 Annual Report
                                   Item                             Note   Closing balance     Opening balance
 Financial assets measured with fair value and having its changes
accounted in current income and loss
 Derivative financial assets
 Notes payable
 Accounts payable                                                             341,939,490.32      370,153,498.98
 Receipts in advance                                                          232,409,605.46      253,775,506.41
 Employee benefits payable                                                    121,407,244.00         513,377.00
 Tax payable                                                                   75,506,168.49       12,682,879.20
 Interest payable                                                               1,955,378.33        2,788,929.31
 Dividend payable                                                               1,189,676.90        1,189,676.90
 Other payables                                                                81,786,755.91      457,108,038.56
 Assets classified as available-for-sale assets
 Non-current liabilities due within one year
 Other current liabilities
Total current liabilities                                                   2,112,194,319.41    1,718,211,906.36
Non-current liabilities
 Long-term borrowing
 Bonds payable
 Including: Preferred stock
             Debt sustainability
 Long-term payables                                                           170,000,000.00      645,000,000.00
 Long-term employee benefits                                                  181,130,000.00      190,880,000.00
 Special payables                                                              11,050,000.00       11,050,000.00
 Provisions
 Deferred income                                                                6,873,750.00        6,650,100.00
 Deferred tax liabilities                                                       9,728,506.05       10,785,123.90
 Other non-current liabilities
                                                    74 / 95
                                                2016 Annual Report
                                   Item                                      Note         Closing balance        Opening balance
Total non-current liabilities                                                                378,782,256.05         864,365,223.90
Total liabilities                                                                          2,490,976,575.46        2,582,577,130.26
Shareholders’ equity:
  Share capital                                                                            1,156,399,976.00        1,156,399,976.00
  Other equity instruments
  Including: Preferred stock
             Debt sustainability
  Capital reserve                                                                          1,690,068,638.82        1,690,068,638.82
  Less: Treasury stock
  Other Comprehensive Income                                                                      7,715,149.28       11,345,002.84
  Special reserve
  Surplus reserves                                                                               11,329,760.39       11,329,760.39
  Retained earnings                                                                          -935,402,850.43        -614,936,506.51
Total shareholders’ equity                                                                1,930,110,674.06        2,254,206,871.54
Total liabilities and shareholders’ equity                                                4,421,087,249.52        4,836,784,001.80
    Legal representative:   Superintendent responsible for accounting:   Superintendent for accountancy firm:
                            Consolidated Income Statement
                                              January-December 2016
Prepared by:    SHANGHAI CHLOR-ALKAL CHEMICAL CO.,LTD
                                                                                    Unit: Yuan     Currency: RMB
                                                                                        Amount incurred in          Amount of
                                     Item                                       Note
                                                                                           current period        previous period
1. Total Operating income                                                                   6,754,397,061.69       6,170,874,223.67
  Including: Operating income                                                               6,754,397,061.69       6,170,874,223.67
               Interest income
               Earned premium
                                                     75 / 95
                                                 2016 Annual Report
                                                                             Amount incurred in     Amount of
                                      Item                            Note
                                                                               current period     previous period
              Fee and commission income
2. Total Operating Cost                                                        7,245,409,457.47   6,427,713,999.83
   Including: Operating costs                                                  6,128,517,218.57   5,559,439,778.97
              Interest expenditure
              Fee and commission expense
              Returned premium
              Net compensation expenditure
              Withdrawn net insurance contract reserve
              Dividend expenditure on insurance policies
              Reinsurance expenses
              Business taxes and levies                                           28,916,705.72      19,193,727.90
              Selling expenses                                                   184,329,793.95     199,911,085.12
              Administrative expenses                                            480,214,277.58     402,196,032.57
              Financial expense                                                   74,994,167.59     140,436,053.89
              Asset impairment losses                                            348,437,294.06     106,537,321.38
   Plus: Income from fair value changes (for loss, fill in \"-\")
         Investment profit (loss is expressed with \"-\")                          131,189,596.30     147,125,155.93
         Including: Income from investments in associates and JCEs                97,360,187.93      44,597,649.84
         Exchange gain/loss (for loss, fill in \"-\")
3. Operating Profit (Indicate Loss with \"-\")                                    -359,822,799.48    -109,714,620.23
   Plus: Non-operating income                                                     26,386,162.15     220,140,784.81
         Including: Gains from disposal of non-current assets                        823,415.34     175,597,261.11
   Less: Non-operating expenses                                                    1,377,001.45         864,280.61
         Including: Losses from disposal of non-current assets                       525,479.38         520,754.37
4. Total Profit (Indicate Total Loss with \"-\")                                  -334,813,638.78     109,561,883.97
   Less: Income tax expenses                                                       1,703,353.49       4,672,427.26
                                                       76 / 95
                                                 2016 Annual Report
                                                                                                   Amount incurred in      Amount of
                                       Item                                                 Note
                                                                                                     current period      previous period
5. Net Profit (Indicate Loss with \"-\")                                                                -336,516,992.27      104,889,456.71
   Net profit attributable to shareholders of the Company                                             -328,091,761.80       95,615,030.34
   Profit or loss attributable to minority interests                                                     -8,425,230.47       9,274,426.37
6. Net amount of other comprehensive revenues after tax                                                  8,267,503.82       10,397,536.07
 Net amount of other comprehensive revenues after tax attributable to
                                                                                                         8,267,503.82       10,397,536.07
 shareholders of parent company
 (1)   Other   comprehensive      income      that     will     not     be   reclassified
                                                                                                          -460,000.00       -13,980,000.00
 subsequently to profit or loss
 1) Changes in net liabilities or net assets due to remeasurement of
                                                                                                          -460,000.00       -13,980,000.00
 defined benefit plans
 2) Other comprehensive income that will not be reclassified subsequently
 to profit or loss of invested entities under equity method
 (2) Other comprehensive income that may be reclassified subsequently
                                                                                                         8,727,503.82       24,377,536.07
 to profit or loss
 1) Other comprehensive income that may be reclassified subsequently to
 profit or loss of invested entities under equity method in future
 2) Changes in fair value of available-for-sale financial assets                                         8,727,503.82       24,377,536.07
 3) Profit or loss of held-to-maturity investments that are reclassified as
 available-for-sale financial assets
 4) Effective part of profit or loss of cash flow hedge
 5) Exchange differences on translating foreign operations
 6) Other
 Other comprehensive income (loss) attributable to minority interests
7. Total Comprehensive Income                                                                         -328,249,488.45      115,286,992.78
 Total comprehensive income attributable to shareholders of the Company                               -319,824,257.98      106,012,566.41
 Total comprehensive income attributable to minority interests                                           -8,425,230.47       9,274,426.37
8. Earnings per Share
 (1) Basic earnings per share                                                                                 -0.2837              0.0827
                                                              77 / 95
                                                       2016 Annual Report
                                                                                             Amount incurred in            Amount of
                                            Item                                     Note
                                                                                                current period          previous period
  (2) Diluted earnings per share                                                                            -0.2837                    0.0827
    Legal representative:        Superintendent responsible for accounting:   Superintendent for accountancy firm:
                           Income Statement of Parent Company
                                                    January-December 2016
Prepared by:      SHANGHAI CHLOR-ALKAL CHEMICAL CO.,LTD
                                                                                        Unit: Yuan     Currency: RMB
                                                                                               Amount incurred in       Amount of previous
                                            Item                                      Note
                                                                                                  current period              period
1. Operating income                                                                                  4,221,442,504.36        5,306,202,144.25
   Less: Operating cost                                                                              3,635,572,923.53        4,779,946,815.88
           Business taxes and levies                                                                   25,583,943.98           16,200,534.43
           Sales expenses                                                                             166,289,797.50          184,902,755.30
           Administrative expenses                                                                    444,945,382.58          352,189,770.28
           Financial expense                                                                           74,847,579.48          139,259,008.16
           Asset impairment losses                                                                    350,543,850.73          104,311,645.14
   Plus: Income from fair value changes (for loss, fill in \"-\")
           Investment profit (loss is expressed with \"-\")                                             132,724,899.42          196,816,182.18
           Including: Income from investments in associates and JCEs                                   97,360,187.93           44,597,649.84
2. Operating Profit (Indicate Loss with \"-\")                                                          -343,616,074.02          -73,792,202.76
   Plus: Non-operating income                                                                          24,394,366.15          217,277,438.15
   Including: Gains from disposal of non-current assets                                                   541,341.67          175,459,449.37
   Less: Non-operating expenses                                                                         1,244,636.05              460,655.84
   Including: Losses from disposal of non-current assets                                                  512,438.97              376,422.17
3. Total Profit (Indicate Total Loss with \"-\")                                                        -320,466,343.92         143,024,579.55
   Less: Income tax expense
4. Net Profit (Indicate Loss with \"-\")                                                                -320,466,343.92         143,024,579.55
                                                                  78 / 95
                                                      2016 Annual Report
5.Net amount of other comprehensive revenues after tax                                                      -3,629,853.56          10,389,083.82
   (1) Other comprehensive income that will not be reclassified subsequently to profit
                                                                                                              -460,000.00          -13,980,000.00
or loss
   1) Changes in net liabilities or net assets due to remeasurement of defined benefit
                                                                                                              -460,000.00          -13,980,000.00
plans
   2) Other comprehensive income that will not be reclassified subsequently to profit or
loss of invested entities under equity method
   (2) Other comprehensive income that may be reclassified subsequently to profit or
                                                                                                            -3,169,853.56          24,369,083.82
loss
   1) Other comprehensive income that may be reclassified subsequently to profit or
loss of invested entities under equity method in future
   2) Changes in fair value of available-for-sale financial assets                                          -3,169,853.56          24,369,083.82
   3) Profit or loss of held-to-maturity investments that are reclassified as
available-for-sale financial assets
   4) Effective part of profit or loss of cash flow hedge
   5) Exchange differences on translating foreign operations
   6) Other
6. Total Comprehensive Income                                                                             -324,096,197.48         153,413,663.37
7.Earnings per Share:
   (1) Basic earnings per share
   (2) Diluted earnings per share
       Legal representative:    Superintendent responsible for accounting:        Superintendent for accountancy firm:
                               Consolidated Cash Flow Statement
                                                  January-December 2016
Prepared by:      SHANGHAI CHLOR-ALKAL CHEMICAL CO.,LTD
                                                                                             Unit: Yuan    Currency: RMB
                                                                                                   Amount incurred in       Amount of previous
                                           Item                                            Note
                                                                                                     current period               period
1. Cash flow from operating activities:
                                                             79 / 95
                                                        2016 Annual Report
                                                                                                 Amount incurred in     Amount of previous
                                           Item                                           Note
                                                                                                   current period             period
   Cash received from sale of goods and rendering of services                                        7,509,526,827.49       7,510,561,650.86
   Net increases in customer deposits and peer deposits
   Net increases in borrowing from central bank
   Net increases in interbank borrowing from other financial institutions
   Cash received from premiums on primary insurance contracts
   Net cash amount received from reinsurance business
   Net increase in deposits from policyholder
   Net increase from disposal of financial assets measured in fair value and having its
changes accounted in current profit and loss
   Cash collected from interest, handling fees and commissions
   Net increases in interbank borrowing
   Net increase in repurchase business capital
   Receipts of tax refunds                                                                                807,011.37            1,550,381.55
   Other cash received related to operating activities                                                 101,174,531.77         176,962,786.84
   Sub-total of cash inflow from operating activities                                                7,611,508,370.63       7,689,074,819.25
   Cash payments for goods purchased and services received                                           6,460,589,082.43       6,546,749,918.62
   Net increases in customer loans and advances
   Net increases in deposits with central bank and other financial institutions
   Original insurance contract claims paid
   Cash payments for interests, fees and commissions
   Policyholder dividend paid
   Cash payments to and on behalf of employees                                                         372,744,973.77         392,633,278.07
   Payments for various types of taxes                                                                 147,418,472.69         209,497,530.89
   Other payments relating to operating activities                                                     141,899,080.50         234,341,659.22
   Sub-total of cash outflow relating to operating activities                                        7,122,651,609.39       7,383,222,386.80
   Net cash flow from operating activities                                                             488,856,761.24         305,852,432.45
                                                                80 / 95
                                                        2016 Annual Report
                                                                                              Amount incurred in     Amount of previous
                                             Item                                      Note
                                                                                                current period             period
2. Cash flow from investing activities
   Cash receipts from recovery of investments                                                        14,750,893.88
   Cash receipts from investment income                                                              40,900,561.88          50,188,256.22
   Net cash receipts from disposals of fixed assets, intangible assets and other
                                                                                                      1,895,801.68         366,988,374.84
long-term assets
   Net cash paid for acquisition of subsidiaries and other business units                                                  201,393,475.46
   Other cash received related to investing activities                                                 340,000.00              568,000.00
   Sub-total of cash inflow from investing activities                                                57,887,257.44         619,138,106.52
   Cash payment to acquire or construct fixed assets, intangible assets and other
                                                                                                     71,811,205.80         116,302,260.65
long-term assets
   Cash payments to acquire investments                                                              18,316,800.00          40,466,400.00
   Net increase in pledge loans
   Net cash paid for acquisition of subsidiaries and other business units
   Other cash paid related to investing activities
   Subtotal of cash outflow from investing activities                                                90,128,005.80         156,768,660.65
   Net cash flow from investing activities                                                          -32,240,748.36         462,369,445.87
3. Cash flow from financing activities
   Cash received from capital contributions
   Including: cash receipts from capital contributions from minority shareholders of
subsidiaries
   Cash received from borrowings                                                                  1,718,900,000.00       2,487,739,713.32
   Cash received from bond issue
   Other cash received related to financing activities
   Sub-total of cash inflow from financing activities                                             1,718,900,000.00       2,487,739,713.32
   Cash repayments of borrowings                                                                  1,909,900,000.00       3,277,077,512.61
   Cash payments for distribution of dividends or profits or settlement of interest
                                                                                                     75,227,416.76         140,724,441.68
expenses
                                                             81 / 95
                                                      2016 Annual Report
                                                                                                     Amount incurred in        Amount of previous
                                           Item                                              Note
                                                                                                       current period                period
   Including: payments for distribution of dividends or profit to minority shareholders of
subsidiaries
   Other cash payments relating to financing activities
   Sub-total of cash outflow relating to financing activities                                               1,985,127,416.76        3,417,801,954.29
   Net cash flow from financing activities                                                                   -266,227,416.76         -930,062,240.97
4. Effect of foreign exchange rate changes on cash and cash equivalents                                        3,241,849.50              -325,298.50
5. Net increase in cash and cash equivalents                                                                 193,630,445.62          -162,165,661.15
   Add: Opening balance of cash and cash equivalents                                                         240,369,250.29          402,534,911.44
6. Closing balance balance of cash and cash equivalents                                                      433,999,695.91          240,369,250.29
    Legal representative:      Superintendent responsible for accounting:          Superintendent for accountancy firm:
                      Cash Flow Statement of Parent Company
                                                    January-December 2016
Prepared by:     SHANGHAI CHLOR-ALKAL CHEMICAL CO.,LTD
                                                                                               Unit: Yuan     Currency: RMB
                                                                                                     Amount incurred in        Amount of previous
                                             Item                                             Note
                                                                                                       current period                period
1. Cash flow from operating activities:
   Cash receipts from the sale of goods and rendering of services                                        4,680,256,864.22           6,511,335,605.62
   Tax rebate received                                                                                           807,011.37              279,357.64
   Other cash receipts relating to operating activities                                                       83,844,488.95          156,904,899.36
   Sub-total cash inflow from operating activities                                                       4,764,908,364.54           6,668,519,862.62
   Cash payments for goods purchased and services                                                        3,674,822,963.70           5,714,454,512.78
   Cash payments to and on behalf of employees                                                               326,343,263.63          317,693,761.30
   Payments for various types of taxes                                                                       135,326,338.40          182,897,891.76
   Other payments relating to operating activities                                                           129,019,340.43          198,804,795.65
                                                                82 / 95
                                                       2016 Annual Report
                                                                                                      Amount incurred in     Amount of previous
                                             Item                                              Note
                                                                                                        current period             period
   Sub-total cash outflow relating to operating activities                                                4,265,511,906.16        6,413,850,961.49
   Net cash flow from operating activities                                                                  499,396,458.38         254,668,901.13
2. Cash flow from investing activities
   Cash receipts from recovery of investments                                                                14,750,893.88
   Cash receipts from investment income                                                                      42,435,865.00          75,126,857.37
   Net cash receipts from disposal of fixed assets, intangible assets and other long-term
                                                                                                              1,520,827.72         366,829,419.15
assets
   Net cash paid for acquisition of subsidiaries and other business units                                                          224,174,251.71
   Other cash received related to investing activities                                                         340,000.00              568,000.00
   Sub-total cash flow from investing activities                                                             59,047,586.60         666,698,528.23
   Cash payments to acquire or construct fixed assets, intangible assets and other
                                                                                                             68,748,453.09          75,105,899.49
long-term assets
   Cash payments to acquire investments                                                                      68,316,800.00          40,466,400.00
   Net cash paid for acquisition of subsidiaries and other business units
   Other cash paid related to investing activities
   Sub-total cash outflow relating to investing activities                                                  137,065,253.09         115,572,299.49
   Net cash flow from investing activities                                                                  -78,017,666.49         551,126,228.74
3. Cash flow from financing activities
   Cash received from capital contributions
   Cash received from borrowings                                                                          1,739,000,000.00        2,373,595,009.82
   Cash received from bond issue
   Other cash receipts relating to financing activities
   Sub-total cash inflow from financing activities                                                        1,739,000,000.00        2,373,595,009.82
   Cash repayments of borrowings                                                                          1,930,000,000.00        3,189,876,409.11
   Cash payments for distribution of dividends or profits or settlement of interest expenses                 74,319,883.19         137,950,238.68
   Other cash paid related to financing activities
   Sub-total cash outflow relating to financing activities                                                2,004,319,883.19        3,327,826,647.79
   Net cash flow from financing activities                                                                 -265,319,883.19         -954,231,637.97
                                                             83 / 95
                                                   2016 Annual Report
                                                                                            Amount incurred in     Amount of previous
                                          Item                                      Note
                                                                                              current period             period
4. Effect of foreign exchange rate on cash and cash equivalents                                     3,241,849.50           -1,271,463.09
5. Net Increase in cash and cash equivalents                                                      159,300,758.20         -149,707,971.19
   Add: Opening balance of cash and cash equivalents                                              212,133,296.30         361,841,267.49
6. Closing Balance of cash and cash equivalents                                                   371,434,054.50         212,133,296.30
    Legal representative:     Superintendent responsible for accounting:   Superintendent for accountancy firm:
                                                          84 / 95
                                                                                2016 Annual Report
                                Consolidated Statement on Changes in Shareholders' Equity
                                                                             January-December 2016
                                                                                                         Current period
                                                                            shareholders’s equity Attributable to the Parent Company
                                                         Other equity
                                                                                            Less:      Other                                                          Minor           Total
                Item                                     instruments                                                                     Common
                                      Share                                    Capital     Share Comprehe          Special   Surplus                 Attributabl shareholder shareholde
                                                  Preferr Sustain                                                                          risk
                                     capital                        Other     reserve       s in       nsive       reserve   reserves                 e profit      s’ equity      rs' equity
                                                    ed       able                                                                        provision
                                                                        s                  stock      Income
                                                  stock      debt
                                    1,156,399,9                              1,674,270,9            12,317,916.4             11,329,76               -592,773,59                   2,269,976,04
1.Balance at the end of last year                                                                                                                                  8,430,996.27
                                         76.00                                     87.60                       4                  0.39                      4.89                           1.81
 Add: Change of accounting
policy
       Correcting of previous
errors
       Merger of entities under
common control
       Others
2.Balance at the beginning of       1,156,399,9                              1,674,270,9            12,317,916.4             11,329,76               -592,773,59                   2,269,976,04
                                                                                                                                                                   8,430,996.27
this year                                76.00                                     87.60                       4                  0.39                      4.89                           1.81
3. Increase/decrease at this
                                                                                                                                                     -328,091,76                   -328,693,888
term                                                                                                8,267,503.82                                                   -8,869,630.47
                                                                                                                                                            1.80                              .45
 (for decrease, fill in \"-\")
                                                                                         85 / 95
                                  2016 Annual Report
 (1) Total Comprehensive                                        -328,091,76                   -328,249,488
                                                 8,267,503.82                 -8,425,230.47
Income                                                                 1.80                            .45
 (2) Capital injection and
reduction by shareholders
 1) Total comprehensive
income
 2) Investment or decreasing of
capital by shareholders
 3) Amount of shares paid and
accounted as shareholders’
equity
 4) Others
 (3) Profit allotment                                                          -444,400.00 -444,400.00
 1) Providing of surplus
reserves
 2) Providing of common risk
provisions
 3) Allotment to the owners (or
                                                                               -444,400.00 -444,400.00
shareholders)
 4) Others
 (4) Internal transferring of
shareholders’ equity
                                       86 / 95
                                                                                 2016 Annual Report
 1) Capitalizing of capital
reserves (or to capital shares)
 2) Capitalizing of surplus
reserves (or to capital shares)
 3) Making up losses by
surplus reserves.
 4) Others
 (5) Special reserve
                                                                                                                    13,368,608.                                                      13,368,608.5
 1) Provided this term
                                                                                                                            56
                                                                                                                    13,368,608.                                                      13,368,608.5
 2) Used this term
                                                                                                                            56
 (6) Other
4. Balance at the end of this       1,156,399,9                               1,674,270,9            20,585,420.2                 11,329,76              -920,865,35                 1,941,282,15
                                                                                                                                                                       -438,634.20
term                                     76.00                                      87.60                      6                       0.39                     6.69                           3.36
                                                                                                           Previous period
                                                                            Shareholders’s equity Attributable to the Parent Company
                                                       Other equity
                                                                                                                                                 Commo                  Minor          Total
               Item                                    instruments                           Less:         Other
                                       Share                                   Capital                                   Special     Surplus     n risk Attributabl shareholder shareholders
                                                   Prefer Sustain                           Shares in Comprehensiv
                                       capital                       Othe     reserve                                    reserve     reserves provisio     e profit    s’ equity     ' equity
                                                    red    able                              stock       e Income
                                                                      rs                                                                           n
                                                   stock   debt
1.Balance at the end of last year    1,156,399,9                             1,683,394,0                 1,920,380.37                11,329,76            -688,388,6 91,606,113. 2,256,261,620
                                                                                         87 / 95
                                                    2016 Annual Report
                                        76.00         15.86                                  0.39        25.23            33             .72
 Add: Change of accounting
policy
       Correcting of previous errors
       Merger of entities under
common control
       Others
2.Balance at the beginning of this 1,156,399,9   1,683,394,0                            11,329,76   -688,388,6 91,606,113. 2,256,261,620
                                                                         1,920,380.37
year                                    76.00         15.86                                  0.39        25.23            33             .72
3. Increase/decrease at this term                -9,123,028.                                        95,615,030 -83,175,117.
                                                                     10,397,536.07                                             13,714,421.09
 (for decrease, fill in \"-\")                             26                                                .34
 (1) Total Comprehensive                                                                            95,615,030 9,274,426.3 115,286,992.7
                                                                     10,397,536.07
Income                                                                                                     .34             7
 (2) Capital injection and                       -9,123,028.                                                     -89,649,543. -98,772,571.6
reduction by shareholders                                26                                                               43
 1) Total comprehensive income
 2) Investment or decreasing of
capital by shareholders
 3) Amount of shares paid and
accounted as shareholders’
equity
 4) Others                                       -9,123,028.                                                     -89,649,543. -98,772,571.6
                                                           88 / 95
                                    2016 Annual Report
                                        26                                    43
                                                                     -2,800,000.0
 (3) Profit allotment                                                               -2,800,000.00
 1) Providing of surplus reserves
 2) Providing of common risk
provisions
 3) Allotment to the owners (or                                      -2,800,000.0
                                                                                    -2,800,000.00
shareholders)
 4) Others
 (4) Internal transferring of
shareholders’ equity
 1) Capitalizing of capital
reserves (or to capital shares)
 2) Capitalizing of surplus
reserves (or to capital shares)
 3) Making up losses by surplus
reserves.
 4) Others
 (5) Special reserve
                                                         14,426,41
 1) Provided this term                                                              14,426,417.80
                                                              7.80
 2) Used this term                                       14,426,41                  14,426,417.80
                                         89 / 95
                                                                            2016 Annual Report
                                                                                                                          7.80
 (6) Other
                                     1,156,399,9                        1,674,270,9                                              11,329,76         -592,773,5 8,430,996.2 2,269,976,041
4. Balance at the end of this term                                                                    12,317,916.44
                                          76.00                              87.60                                                    0.39             94.89                 7              .81
Legal representative: Superintendent responsible for accounting: Superintendent for accountancy firm:
                       Statement on Changes in Shareholders' Equity of Parent Company
                                                                          January-December 2016
Prepared by:     SHANGHAI CHLOR-ALKAL CHEMICAL CO.,LTD
                                                                                                                                               Unit: Yuan      Currency: RMB
                                                                                                         Current period
                                                      Other equity instruments                                             Other                                                    Total
               Item                     Share                                          Capital        Less: Shares in                    Special    Surplus      Attributabl
                                                    Preferre Sustainabl                                                 Comprehens                                               shareholder
                                       capital                             Others      reserve            stock                          reserve   reserves       e profit
                                                    d stock    e debt                                                   ive Income                                                s' equity
                                      1,156,399,9                                     1,690,068,6                                                  11,329,760. -614,936,50 2,254,206,87
1.Balance at the end of last year                                                                                       11,345,002.84
                                           76.00                                              38.82                                                         39          6.51            1.54
 Add: Change of accounting
policy
     Correcting of previous errors
     Others
                                                                                    90 / 95
                                                 2016 Annual Report
2.Balance at the beginning of this 1,156,399,9          1,690,068,6                     11,329,760. -614,936,50 2,254,206,87
                                                                        11,345,002.84
year                                    76.00                   38.82                           39         6.51          1.54
3. Increase/decrease at this term                                                                    -320,466,34 -324,096,197
                                                                        -3,629,853.56
(for decrease, fill in \"-\")                                                                                3.92           .48
 (1) Total Comprehensive                                                                             -320,466,34 -324,096,197
                                                                        -3,629,853.56
Income                                                                                                     3.92           .48
 (2) Capital injection and
reduction by shareholders
 1) Total comprehensive income
 2) Investment or decreasing of
capital by shareholders
 3) Amount of shares paid and
accounted as shareholders’
equity
 4) Others
 (3) Profit allotment
 1) Providing of surplus reserves
 2) Allotment to the owners (or
shareholders)
 3) Others
 (4) Internal transferring of
                                                      91 / 95
                                                                        2016 Annual Report
shareholders’ equity
 1) Capitalizing of capital
reserves (or to capital shares)
 2) Capitalizing of surplus
reserves (or to capital shares)
 3) Making up losses by surplus
reserves.
 4) Others
 (5) Special reserve
                                                                                                                                13,368,608.                            13,368,608.5
 1) Provided this term
                                                                                                                                        56
                                                                                                                                13,368,608.                            13,368,608.5
 2) Used this term
                                                                                                                                        56
 (6) Other
                                     1,156,399,9                                  1,690,068,6                                                 11,329,760. -935,402,85 1,930,110,67
4. Balance at the end of this term                                                                               7,715,149.28
                                          76.00                                            38.82                                                      39        0.43           4.06
                                                                                                         Previous period
                                                             Other equity instruments                    Less:        Other                                               Total
                        Item                       Share                                      Capital                               Special    Surplus Attributable
                                                             Preferre Sustainab Other                   Shares in Comprehensiv                                         shareholde
                                                   capital                                    reserve                               reserve    reserves     profit
                                                             d stock   le debt      s                    stock      e Income                                            rs' equity
                                                                                 92 / 95
                                                            2016 Annual Report
                                             1,156,399,97                  1,690,068,                   11,329,76 -757,961,08 2,100,793,2
1.Balance at the end of last year                                                         955,919.02
                                                     6.00                     638.82                        0.39         6.06       08.17
 Add: Change of accounting policy
     Correcting of previous errors
     Others
                                             1,156,399,97                  1,690,068,                   11,329,76 -757,961,08 2,100,793,2
2.Balance at the beginning of this year                                                   955,919.02
                                                     6.00                     638.82                        0.39         6.06       08.17
3. Increase/decrease at this term (for                                                                             143,024,57 153,413,66
                                                                                        10,389,083.82
decrease, fill in \"-\")                                                                                                   9.55        3.37
                                                                                                                   143,024,57 153,413,66
 (1) Total Comprehensive Income                                                         10,389,083.82
                                                                                                                         9.55        3.37
 (2) Capital injection and reduction by
shareholders
 1) Total comprehensive income
 2) Investment or decreasing of capital by
shareholders
 3) Amount of shares paid and accounted as
shareholders’ equity
 4) Others
 (3) Profit allotment
                                                                 93 / 95
                                                               2016 Annual Report
 1) Providing of surplus reserves
 2) Allotment to the owners (or shareholders)
 3) Others
 (4) Internal transferring of shareholders’
equity
 1) Capitalizing of capital reserves (or to
capital shares)
 2) Capitalizing of surplus reserves (or to
capital shares)
 3) Making up losses by surplus reserves.
 4) Others
 (5) Special reserve
                                                                                                           14,426,4                           14,426,417.
 1) Provided this term
                                                                                                             17.80
                                                                                                           14,426,4                           14,426,417.
 2) Used this term
                                                                                                             17.80
 (6) Other
                                                1,156,399,97                  1,690,068,                              11,329,76 -614,936,50 2,254,206,8
4. Balance at the end of this term                                                         11,345,002.84
                                                        6.00                     638.82                                   0.39         6.51        71.54
Legal representative: Superintendent responsible for accounting: Superintendent for accountancy firm:
                                                                    94 / 95
                                                                       2016 Annual Report
                                    Section XII Documents For Reference
                          1.Financial statements signed and stamped by legal representative,principal in charge of accounting,CFO and head of accounting
Documents for reference
                          department;
Documents for reference 2.The original auditor's report stamped by the public accounting firm and signed and stamped by the certified public accountant;
Documents for reference 3.Articles of Association of Shanghai Chlor-Alkali Co.,Ltd. during the report period;
                          4.The formal version of all files and originials of the announcements disclosed in the newspapers appointed by China Securities
Documents for reference
                          Regulatory Commission during the report period;
                          5.The company shall furnish the above documents for reference while China Securities Regulatory Commission and the stock exchange
Documents for reference request to provide them and the shareholders request to consult them according to the requirements of the statute or the Articles of
                          Association.
                                                                                                     Chairman of the Board :
                                                                                                     Presenting date approved by the Board of Directors
                                                                                                    March 30,2017
                                                                              95 / 95

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