Sinopec Shanghai Petrochemical Company Limited provided earnings guidance for the year ended December 31, 2016. Based on preliminary estimates by the finance department of the company, the group is expected to record a 78% to 88% growth of the net profit attributable to equity shareholders of the company for the year ended 31 December 2016 over the same period of last year (RMB 5.778 billion to RMB 6.102 billion). Major reasons for substantial growth in the annual results of the Group in 2016 compared to the corresponding period of the previous year are: In 2016, throughout the year, average prices of the Company’s products decreased to a much lesser extent compared with the prices of the raw materials, which led to the increase in gross profit of the Company’s products. Shanghai Secco Petrochemical Company Limited, the Company’s associate, recorded an increase in profit, hence increased the Company’s investment income. The financial expenses of the Company decreased as it had ample funds of its own. The Group strengthened its internal management, continued to reduce cost and enhance efficiency. The initiatives showed good results.