On November 16, Sinochem International issued the “Announcement on the Sale of Assets of Its Wholly-Owned Subsidiary”, announcing it intends to transfer 36.00% equity of its natural rubber business platform subsidiary Halcyon Agri Corporation Limited to China Hainan Rubber Industry Group Co., Ltd. The transaction consideration is approximately $180 million. This marks another significant step for Sinochem International to achieving the strategy of focusing on fine chemicals as the main business with the core of new chemical materials.

Sinochem International Oil (Singapore) PTE. Ltd., a wholly-owned subsidiary of Sinochem International, will still own 29.2% stake in Halcyon Agri following the take transfer.

In order to build a leading enterprise in innovative new chemical materials, Sinochem International firmly adheres to the development strategy of “doing both enlarging and trimming”, and deeply adjusts its business portfolio. It has gradually formed a main business of fine chemical industry with new chemical materials as the core, and new material industry clusters with leading technology and core competitiveness.

On the “enlarging” side, Sinochem International has transformed itself into a new chemical material enterprise through diverse initiatives including new projects, strategic mergers and acquisitions, and business integration, and rapidly deployed new material businesses such as polymer additives, chemical intermediates, and engineering plastics. The Lianyungang C3 industry project with an investment of over 10 billion yuan will further deepen the industrial layout of new chemical materials, and shape a cost advantage and scale effect with global leading competitiveness.

On the “trimming” side, Sinochem International has gradually phased out the businesses that do not meet the company’s strategic transformation requirements, and has successively withdrawn from non-core businesses such as logistics, agrochemicals, and partial chemical trade businesses.

While non-core businesses withdrawing in an orderly manner, Sinochem International’s chemical new materials industry has begun to gradually deliver its performance after several years of intensive building up and cultivation. In 2019, 2020, 2021 and H1 2022, Sinochem International’s revenue registered 18.518 billion yuan, 20.501 billion yuan, 24.792 billion yuan and 20.984 billion yuan respectively, and the revenue of H1 2022 exceeded 2020’s total.