The entrepreneurial history of Sinopec?

In 1972, in order to solve the clothing problem of the people across the country, a magnificent picture called the "Jinshan Project" kicked off at Shanghai Jinshanwei on the north shore of Hangzhou Bay. The predecessor of Sinopec Shanghai Petrochemical Co., Ltd. (hereinafter referred to as Sinopec), the Shanghai Petrochemical General Plant, is a very large modern petrochemical enterprise that is well-known at home and abroad. In this land where "the tide comes, everything is watery, and the tide goes, everything is white". Rapidly rising on the salty beach.

Over the past 37 years, with the leadership, support and help of relevant national ministries and commissions, Sinopec and Shanghai Municipality, Sinopec has completed the first to fourth phases of projects and structures through the joint efforts of several generations of cadres and workers. Adjusting the construction of the project from scratch, it has achieved leapfrog development and achieved world-renowned achievements. It has become China's top modern petrochemical enterprise that integrates the production and operation of four major categories of petrochemical products: oil, chemical fiber and plastic. It is a highly integrated modern petrochemical enterprise. It is the first international listed company in China whose stocks are listed simultaneously in New York, Hong Kong and Shanghai. Its development has also led to the construction of Jinshan New City with beautiful environment, convenient transportation and complete municipal facilities.

Create "Jinshan Speed" to achieve leapfrog development of enterprises

From the start of the business to the completion of the fourth phase of the project, and then to the structural adjustment project, Sinopec has made great achievements in the construction and development history of my country's petrochemical industry. Wrote a series of impressive records.

On January 1, 1974, the first phase of the project broke ground. In just over 3 years, my country's leading modern chemical fiber production base in the 1970s was built on a deserted beach. It set many records at that time for domestic large-scale capital construction projects in terms of short time, fast speed, low investment, and complex engineering. , becoming a model for national engineering construction. After the first phase of the project is put into operation, Sinopec will provide 1 meter of chemical fiber fabric raw materials per capita to the country every year, generating annual profits and taxes of approximately 500 million yuan. The state invested 2.2 billion yuan in the first phase of the project, and the entire investment will be recovered within 4 years.

In July 1980, piling for the second phase of the project started, and it was fully completed and put into operation in 1985. After being put into operation, the utilization rate of crude oil resources has increased from less than 30% to 43%, providing nearly 3 meters of chemical fiber fabric raw materials per capita to the country every year, and generating annual profits and taxes of more than 1 billion yuan. The total state investment plus corporate loans for the second phase of the project is 2.3 billion yuan, and the project loan will be paid off in three years.

The third phase project started construction in May 1987 and was fully completed and put into operation in April 1992. The project was constructed with RMB 6 billion of self-raised funds by the company. After it was put into operation, the crude oil resource utilization rate increased from 43% to over 62%. The ethylene production capacity reached 450,000 tons/year, ranking first in the country. It generated profits and taxes of RMB 1.7 billion in the year of operation.

The 300,000 tons/year ethylene main project in the third phase of the project was hailed as "miraculous speed" by foreign ethylene experts at the time with a 31-month construction period. Sinopec's pioneering "reversing drive" program achieved a start-up level of producing qualified products within 16 hours and 15 minutes after inputting materials, which has been recorded in the development history of the world's ethylene industry.

In June 2000, the fourth phase of the project started construction and was completed and put into operation in April 2002. The fourth phase of the project is mainly characterized by potential tapping and transformation. It consists of five major projects including technological transformation with an annual output of 700,000 tons of ethylene, with a total investment of approximately 6.5 billion yuan. During the construction of the fourth phase of the project, Sinopec completed the 700,000 tons/year ethylene technological transformation project in 22 months and built the world's largest 250,000 tons/year "shuangfeng" polyethylene plant in 20 months. record.

So far, Sinopec has become a comprehensive processing company with an annual crude oil processing capacity of 8.8 million tons, an annual output of 850,000 tons of ethylene, 4.2 million tons of refined oil and chemical products, 1.15 million tons of synthetic fiber raw materials and synthetic fibers, and 1.15 million tons of synthetic resins. It is a highly comprehensive large-scale petrochemical complex with a production capacity of 910,000 tons.

Since 2007, Sinopec has focused on structural adjustment projects focusing on optimizing the structure and achieving sustainable development. This project is a new step in the development of Sinopec. After the completion of the entire project, Sinopec's annual sales revenue will be greatly increased and the industrial chain will be more reasonable, thereby taking the company's overall competitiveness to a new level. 2008. The 2008 (fifth) "China's Most Popular Economics" was jointly held by the world's leading financial magazines "Buffett Magazine", "World Economist Weekly" and the world's authoritative corporate competitiveness research institution - World Corporate Competitiveness Laboratory. In the selection activity of "Respected Listed Companies Award", China Petroleum & Chemical Corporation was on the list.

At the same time, China Petroleum & Chemical Corporation actively applied for the sixth "China's 25 Most Respected Listed Companies Award" event in 2009.

Creating the "Jinshan Road" provides a successful example for the reform of state-owned enterprises

Sinopec's construction and development in the first 20 years has made remarkable achievements, but it has also exposed the political situation of state-owned enterprises. There are various contradictions inherent in the planned economic system such as the indivisibility of enterprises, unclear property rights, excessive redundancy, heavy debts and social burdens, and weak self-development capabilities of enterprises. According to statistics, by the end of 1992, enterprises owed US$470 million in foreign debt, 1.35 billion yuan in corporate bond debt, and more than 3 billion yuan in other domestic debt. The asset-liability ratio was as high as 75.4%, and the total loan repayment amounted to more than 7 billion yuan. The debt would be It’s still 2008. Deep-seated contradictions have seriously troubled Sinopec, affecting and hindering the company's survival and development. To this end, Sinopec has carried out a series of internal system reforms, but they have been unable to fundamentally solve these problems.

The eastern wind brings spring to your eyes. After Comrade Deng Xiaoping delivered his speech during his southern tour in 1992, the company's leadership deeply realized that Sinopec could only continue to develop healthily through shareholding reform, establish a modern corporate system, and completely transform its operating mechanism. Otherwise, its brilliant achievements may become history. "Freeze frame". Based on this, Sinopec seized the favorable opportunity when the Party Central Committee and the State Council were selecting large state-owned enterprises to carry out joint-stock reform pilots. With the leadership, support and help of relevant national ministries and commissions, Sinopec Corporation and Shanghai Municipality, after arduous efforts, Sinopec Efforts, as one of the first nine pilot enterprises approved to carry out standardized joint-stock reform in my country, successfully carried out standardized joint-stock reform in June 1993.

From July to August 1993, the company's shares were listed in Hong Kong, New York, and Shanghai respectively, becoming my country's first international listed company listed in three places at home and abroad. State-owned assets were invested into the joint-stock company at the rate of 4 billion yuan (A shares), accounting for 55.56% of Sinopec's current total share capital of 7.2 billion yuan. Public shares are 3.2 billion yuan (including 870 million yuan for A shares and 2.33 billion yuan for H shares), accounting for 44.44% of the total share capital.

Through corporate restructuring and standardized restructuring in accordance with international practices, Sinopec has completely divested itself of its original corporate social functions, gathered social capital, improved its capital structure, shed its heavy debt burden, and achieved It has diversified investment entities and formed self-development capabilities. A number of infrastructure, technological transformation and "bottleneck" removal projects have been completed and put into operation, adding stamina to the company's sustainable development.

The restructuring practice of Sinopec has proved that large state-owned enterprises that grew up under the planned economy environment can become an internationally recognized listed company through standardized joint-stock reform. Standardized shareholding reform is a very effective way for state-owned large and medium-sized enterprises to deepen reforms, transform mechanisms, get rid of difficulties, enhance vitality, and achieve sustained, healthy and rapid development.

Create "Jinshan Benefits" and make important contributions to the development of the national economy

From the day it was founded, Sinopec has taken it as its mission to repay the country and benefit the society, and to make contributions to the development of the national economy. own contribution. The completion and commissioning of the first and second phases of the project has made a direct contribution to the end of the history of the voucher supply of textiles in our country. The completion of the third phase of the project has raised my country's ethylene production capacity to an annual output of 2 million tons, jumping from 15th to 8th in the world. The completion of the fourth phase of the project has greatly narrowed the gap between my country's single-line production capacity of ethylene, polyethylene, polypropylene and acrylic fiber equipment and the international advanced level.

While completing the construction of the first, second and third phases of the project, Sinopec has built a new petrochemical coastal city with a beautiful environment, complete municipal facilities and a population of more than 100,000 on the bank of Hangzhou Bay. Made special contributions to maintaining community stability. This laid a good foundation for the subsequent construction of Jinshan New City.

Sinopec’s development and growth path is a path that creates “golden mountain benefits” for the country and society. According to statistics, from the launch of trial production in 1977 to the end of 2008, Sinopec has processed a total of 145 million tons of crude oil, produced 13.25 million tons of ethylene, and produced a total of 111 million tons of oil, chemical, plastic, and fiber commodities. In order to promote my country It has made important contributions to the development of textile, light industry, chemical industry, aviation, building materials, packaging and other industries as well as modern agriculture.

Among them, in the 20 years from the establishment of the plant in 1972 to 1992, Sinopec achieved a cumulative profit and tax of 14.7 billion yuan.

From the joint-stock restructuring in 1993 to 2008, Sinopec's total assets increased from 11.5 billion yuan to 28.1 billion yuan, an increase of 1.44 times; the company's net assets increased from 4.7 billion yuan to 13.8 billion yuan, a net increase of 9.1 billion yuan, an increase of 1.94 times. ; The cumulative total profit achieved was 14.3 billion yuan, dividends of 8.512 billion yuan were distributed to all shareholders, and 26 billion yuan in national taxes were paid.

Carry forward the "Jinshan Spirit" and lead scientific development with a corporate culture that keeps pace with the times

"Human beings are great because of their dreams, and enterprises are prosperous because of culture." Excellent corporate culture is an important symbol of a company's comprehensive strength and an important resource for corporate development. The construction and development of Sinopec over the past 37 years is a historical process in which corporate culture accompanies and complements each other. It is also a practical process in which corporate culture construction that advances with the times leads to the scientific development of enterprises.

From the mid-1980s to the early 1990s, on the basis of summarizing and refining the entrepreneurial practices of Sinopec’s Phase I and II project construction, the Sinopec Party Committee gradually introduced the basic theory of corporate culture based on the initiative of the builders. , conducted a preliminary discussion on the content and characteristics of corporate culture, and formally proposed the "Jinshan Spirit" of "hard work, scientific truth-seeking, unity and enterprising, and selfless dedication" on the 10th anniversary of the founding of the factory in 1982. Over the years, the "Jinshan Spirit" has become a banner for Sinopec to emancipate the mind and forge ahead, and an important spiritual driving force for Sinopec's construction and development.

In the 21st century, Sinopec’s corporate culture construction has entered a mature stage. In the practice of welcoming the new century and achieving new leaps, Sinopec has launched the theme activity of "Challenge to the Advanced Level". On the basis of inheriting and developing the "Jinshan Spirit", it has put forward the realistic spirit of "assessing the situation and seizing the opportunity; advocating The enterprising spirit of being advanced and striving to be first-class; the winning spirit of having the courage to fight and be the first; the innovative spirit of being proactive and surpassing oneself."

At the same time, the management concept of "fine management" was nurtured, and a safety concept of "accidents can be avoided", a work concept of "everything has the possibility of improvement", and a "market-oriented, market-oriented" concept were formed. The market view of "customer-centered"; the resource view of "limited natural resources but unlimited human resources"; the career view of "taking the road of sustainable development"; the development view of "innovation is the inexhaustible driving force for enterprise development"; the "internationally advanced, The strategic goal of building a first-class domestic petrochemical enterprise and building a modern petrochemical enterprise with international competitiveness. Sinopec's corporate values ??have thus been greatly enriched and developed.

Since 2003, Sinopec has put forward the basic requirements for professional ethics of "being dedicated and obedient, being a sensible person, abiding by rules and disciplines, being an honest person, being polite and trustworthy, being a civilized person", which has become an effective way for the company to deepen the construction of corporate culture. Grasp. At the end of 2005, in response to the gradual rise in international crude oil prices, the rapid development of the domestic and foreign petrochemical industries, and the periodic characteristics of the company's structural adjustment, Sinopec clearly proposed that it would fully implement a low-cost strategy (cost leadership strategy) for a long period of time in the future. . The low-cost strategy has become a main line that governs and guides Sinopec's production operations and reform and development practices, and has played a positive role in efforts to control and reduce operating costs.

Under the guidance of corporate culture and through the joint efforts of several generations of Sinopec people, Sinopec has continued to innovate in reform and developed steadily in innovation. Since the joint-stock restructuring in 1993, the company has won many honors at home and abroad: in 1995, it ranked first in the selection of "China's Top 100 Listed Companies with Comprehensive Economic Strength"; in the selection of "China's Backbone" Top 500 Excellent State-owned Enterprises Among the best. In 1996, it won the title of Advanced Collective in the National May 1st Labor Award. In 2001, it was rated as the first batch of national "contract-abiding and credit-worthy" enterprises. Since 2004, it has won the title of "National Customer Satisfaction Enterprise" three times in a row. Since 2005, it has won the title of "National Occupational Health Demonstration Enterprise" for two consecutive years. Won the title of “National Civilized Unit” in 2005 and 2008. Over the past 10 years, Sinopec has won more than 250 honorary titles at the provincial and ministerial levels and above, and has created and maintained many records for the development of Chinese enterprises. 2008. The 2008 (fifth) "China's Most Popular Enterprise Competitiveness Laboratory" was jointly held by the world's leading financial magazine "Buffett Magazine", "World Economist Weekly" and the world's authoritative enterprise competitiveness research institution - World Enterprise Competitiveness Laboratory. In the selection activity of "Respected Listed Companies Award", China Petroleum & Chemical Corporation was on the list.

At the same time, China Petroleum & Chemical Corporation actively applied for the sixth "China's 25 Most Respected Listed Companies Award" event in 2009.

Looking forward to the "Jinshan Prospect" and building an internationally competitive modern enterprise

After 37 years of construction and development, Sinopec has stood at a new and higher starting point: The production scale and economic strength rank among the best in the domestic petrochemical industry; the construction of modern enterprise systems has achieved remarkable results; it has a team of cadres and workers with high political quality, strong technical and business capabilities, rigorous and pragmatic style, and the courage to strive for innovation; it is located in the most economically active and innovative place in my country. East China, the most developed region, has unique location advantages. As China's economy continues to develop rapidly in recent years, Sinopec has the development opportunities of "the right time, the right location, and the right people".

In 2008, international crude oil prices rose and fell sharply, and domestic refined oil prices were seriously inverted with international crude oil prices, causing Sinopec's refining business to suffer serious policy losses. At the same time, a financial crisis originating from across the ocean quickly swept across the world. In the face of the financial crisis, Sinopec, like other international petrochemical companies, cannot survive alone. Under internal and external attacks, the deep-seated problems and contradictions that Sinopec has hidden for many years have also been exposed. It has suffered a "Waterloo" in economic performance and is facing the most severe challenges and tests since its establishment.

“Sinopec has a glorious history and a good foundation, and there are conditions for it to remain at the forefront. I hope that Sinopec’s comrades can cheer up, manage carefully, and strive to create a new situation.” Spurred by the main leaders of Sinopec and incentives, which made Sinopec clearly realize that crises test capabilities and crises test style.

For the brave, every hardship and every setback is a motivation to risk death and survive, and an opportunity to catch up after self-reflection. Carrying a heavy sense of responsibility and mission, in early 2009, Sinopec put forward the work goals of "learning from the advanced, strengthening management, overcoming difficulties, promoting development, and gathering people's hearts". These 15 words are the ultimate consciousness formed after the collision of various ideas. They are a "bright sword" for thinking and seeking change after combining reality. They are also a deep understanding and self-requirements for the implementation of the scientific outlook on development.

In accordance with the goal of “raising the banner again and taking the lead again” proposed by Sinopec leaders, Sinopec takes the opportunity to carry out in-depth activities to learn and practice the Scientific Outlook on Development and strive to draw up a blueprint for future development: in “ On the basis of the 11th Five-Year Plan structural adjustment project, we will focus on improving the company's core competitiveness, give full play to the company's advantages of a wide product chain, product diversification and closeness to the market, appropriately adjust the company's development positioning, and further clarify the low-cost and The development strategy and direction of taking into account both differentiation and upstream scale and downstream refinement continue to move towards the goal of "domestic first-class and internationally advanced".

“The road through Xiongguan is really like iron, and now we are crossing it from the beginning.” Facing the future, Sinopec is embarking on a new journey.