The crop protection business is an important component in Sinochems agricultural business

segment. Its business scope covers R&D, Active Ingredient production, pesticide formulating
and repackaging, product registration, and brand marketing, among which we are taking the
lead China in the proprietary pesticide development. Moreover, the sales revenue of
agrochemical bussiness exceeded RMB 10 billion yuan, the highest in China.

Science and Research

Sinochem Group owns two national crop protection R&D platforms, namely the Shenyang
Research Institute of Chemical Industry (SYRICI for short) and Zhejiang Research Institute
of Chemical Industry Ltd. (Zhejiang Institute for short). These two institutes have strong
innovation capacity in China, and have shouldered around 20 national-level R&D projects. At
present, 8 proprietary products are under development.

SYRICI was the first to research and develops pesticides, contributing to pesticide industry
in China. As the supporting institution of Nation Pesticides Quality Supervision and
Inspection Center and National Center for Safety Evaluation of New Drugs, the Institute
owns the key labs for the research and production of new pesticides, thus creating a complete
system for the development of pesticides, ranging from the design synthetic compounds,
production process development, bioactivity assay, application technology development,
preparation processing, safety evaluation to commercialized development. At present, 40% of
major pesticides produced in China are promoted by this institute and two pesticides
independently innovated by this institute have become the major products in China.
Shenyang Institutes testing and evaluation center for toxicity studies and clinical chemistry
analysis as well as pesticide testing lab were both granted the GLP credential by the
government of Nertherlands, the OECD member state. The acquisition of these international
credentials is conducive for Chinese pesticide and other chemical products to go global.

As the supporting institution of National Pesticide Research and Development South Center
Zhejiang Base, Zhejiang Institute is also the largest research center, with its tasks including
research, development and production of new pesticide containing fluorine.

Production

Our company owns production base for pesticides in Shenyang, Yangzhou, Nantong and
Lianyungang, etc., with crop-protection product lines including pesticides, fungicides,
herbicides, and plant growth regulators, covering over 40 active ingredients, with the total
production capacity at 180,000 MT/a. In particular, such core products as glyphosate, amide
herbicides, cyclohexenone herbicides, imidazolinone herbicides, methoxy acrylate,
fungicides, triazole fungicides, neonicotinoid insecticides have already realized scale
production and created strong industrial presence. The production scale and process for some
products, such as pymetrozine and mesotrione, represent the world-class excellence.

In recent years, Sinochem International also accelerates its strategic expansion by continuing
to highlight the industry chain in the business of pesticides. After becoming the largest
shareholder of Nantong Jiangshan Agrochemicals & Chemicals Co. Sinochem acquired
controlling stake in Jiangsu Yangnong Chemical Group, the production capacity of which is
ranked second in the world.

Marketing

Sinochem Group has thousands of online shops of its own or agent shops in China, covering
some major agricultural provinces. Meanwhile, it has established a complete international
marketing network, ranking the first in import and export sales of pesticides in China.

Sinochem is entitled to the ownership of the trademark of Machete, new Machete,

Harness and Alachlor in China, and we are the sole distributor in China of Roundup,
RODEO, OMEX, Latitude and Rocket authorized by the suppliers. We enjoy the
leading position in domestic high-end pesticide market. We bought Monsantos amide
products business in India, Thailand, the Philippines, Vietnam, Pakistan, Bangladesh and
Taiwan, and own 45 product brands in Southeast Asia. We have also acquired the concession
as sole agent to sell Monsantos Roundup products in Australia and New Zealand,
successfully marching into the Australian and New Zealand market.

While maintaining the growth of our core business, we also reinforce our capacity in
technology service, network management and business development. We have worked out
and provided solutions for such major crops as paddy rice and cotton by applying Sionchems
crop protection products.