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The Company further optimised its oil product mix by increasing the production of gasoline, kerosene and light chemical feedstock with a further decline in diesel-to-gasoline ratio. In the first half of 2016, this segment realised an operating profit of RMB 32.6 billion, representing an increase of 113% year on year. The refining margin was RMB 514.4 per tonne, representing an increase of 47.9% year on year. Marketing and Distribution: the Company coordinated and optimised internal and external resources and took full advantage of the synergies between its fuel and non-fuel businesses, achieving growth in their total business volume and retail transactions despite ample fuel supply and strong competition in the market. In addition, the Company adjusted marketing efforts by increasing the retail operation of premium products with high-octane numbers. Non-fuel business sustained rapid development with transaction amount significantly increased by 43% year on year. This segment’s operating profit was RMB 15.8 billion, representing an increase of RMB 600 million year on year. Chemicals: the Company continued to adjust the structure of its feedstock, products and facilities. The Company further lowered the feedstock cost for ethylene, strengthened the integration among production, sales, product R&D and customer needs. The proportion of performance polymer and differentiated products further increased. The Company maintained low inventory operation and implemented differentiated marketing strategy.
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