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Shanghai Petrochemical Announces 2012 Interim Results

HONG KONG, Aug. 27, 2012 /PRNewswire-Asia/ -- Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical" or the "Company") (HKEx: 00338; SSE: 600688; NYSE: SHI) today announced the unaudited operating results of the Company and its subsidiaries (the "Group") prepared under International Financial Reporting Standards ("IFRS") for the six months ended June 30, 2012 (the "Period").

According to IFRS, turnover for the Group for the Period amounted to RMB46,442.1 million, representing a decrease of 6.18% over the corresponding period of the previous year. The Group recorded loss after taxation and non-controlling interests of RMB1,151.5 million (2011 interim: profit attributable to equity shareholders of the Company of RMB1,425.7 million). Basic loss per share was RMB0.160 (2011 interim: basic earnings per share of RMB0.198). The Board of Directors of the Company does not recommend payment of an interim dividend for 2012 (2011 interim: Nil).

Mr. Rong Guangdao, Chairman of Shanghai Petrochemical, said, "In the first half of 2012, the economic growth in China decelerated. With respect to the petroleum and chemical industry, production growth slowed down; demand from the industry was sluggish; market prices fell; and government regulated the price of refined oil. Although the industry recently showed signs of level off and picking up, the Group's profits recorded a loss due to influences such as highly volatile international crude oil prices as well as sharp declines in the profitability of the oil refining and chemical industries. With the uncertainty in the global economic recovery, the Group braved challenges by actively strengthening safety and environmental protection as well as by orderly pushing forward the construction of the Phase 6 Project, thereby maintaining stable production and operations. In addition, the Group also achieved positive results by upgrading major technical and economic indices, optimizing its systems, advancing the construction of the Phase 6 Project, improving its technologies and improving its managerial system."

In the first half of 2012, weakened market demand resulted in a decrease in prices for intermediate petrochemicals, resins and plastic and synthetic fibres, as well as a decrease in sales volume in a number of products as compared to the corresponding period of the previous year. As a result, the Group recorded net sales of RMB43,604.8 million, representing a decrease of 5.91% as compared to the corresponding period of the previous year, of which net sales derived from petroleum products increased by 2.94% and net sales of intermediate petrochemicals, resins and plastics, synthetic fibres and trading of petrochemical products decreased by 9.42%, 12.00%, 25.63% and 11.89% respectively.

Due to the weak market demand, the Group adjusted the production plan and arranged turnaround for some plants in a timely manner, thus the total volume of goods produced decreased by 4.21%. During the Period, the Group processed 5,518,100 tons of crude oil (including 231,800 tons of crude oil processed on a sub-contract basis), representing a decrease of 2.82% over the corresponding period of the previous year. Output of gasoline and jet fuel were 437,500 tons, and 372,100 tons respectively, representing decreases of 14.28% and 7.56% year-on-year respectively. Ouput of diesel was 2,056,500 tons, an increase of 0.04% year-on-year. Outputs of ethylene and paraxylene were 479,800 tons and 425,200 tons respectively, representing decreases of 2.51% and 8.28% year-on-year respectively. Output of synthetic resins and plastics (excluding polyester and polyvinyl alcohol) was 565,400 tons, representing a decrease of 0.96% year-on-year. Outputs of synthetic fibre monomers, synthetic fibre polymers were 512,800 tons, 326,700 tons respectively, representing an increase of 2.63% and 0.09% year-on-year respectively. Output of synthetic fibres was 124,900 tons, representing a decrease of 3.26% year-on-year. The Group's output-to-sales ratio and receivable recovery ratio were 100.14% and 99.96% respectively.

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