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氯碱化工:2014年半年度报告2014-08-26  

						          上海氯碱化工股份有限公司 2014 年半年度报告




Shanghai Chlor-Alkali Chemical Co., Ltd.
                         600618



          2014 Interim Report




                   August 22, 2O14




                              1
                           上海氯碱化工股份有限公司 2014 年半年度报告




                                     Important Notice


1. The Board of Directors and the members, the Supervisory Committee and the members and the
   senior executives of the Company ensure that the content of this interim report is true, accurate
   and integrative, not having any false statement, misleading representation or significant
   omission, and will take joint and several legal responsibilities for the Report.

2. All the Directors of the Company attended the Board meeting.

3. The Company's interim financial report has not been audited.

4. Mr. Li Jun, principal of the Company, Mr. He Gang, principal in charge of accounting of the
   Company, and Mr. Lai Yonghua, head of accounting department (accounting officer) declare to
   guarantee the truth, accuracy and integrity of the financial report in this interim report.

5. The future plan or other forward looking statement included in this Report shall not constitute
   the Company's substantial commitment to the investors, and we remind the investors to notice
   the investment risks.

6. Is there any non-operational fund occupation by the controlling shareholder or by the related
   parties?
   No

7. Is there any guarantee for outside entities in violation of the stipulated decision-making
  process?
  No




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                                         上海氯碱化工股份有限公司 2014 年半年度报告




                                                           Contents
1. Paraphrase ..................................................................................................................................... 4
3. Company Profile ........................................................................................................................... 5
3. Financial Highlights ...................................................................................................................... 6
4. The Report of the Board of Directors............................................................................................ 8
5. Major Events ............................................................................................................................... 16
6. Changes in Shareholding and Particulars of Shareholders .......................................................... 24
7. Particulars of Preference Share ................................................................................................... 26
8. Particulars of Directors, Supervisors and Senior Executives ...................................................... 27
9. Financial Report (unaudited)....................................................................................................... 28
10. Documents for Reference.......................................................................................................... 41




                                                                         3
                          上海氯碱化工股份有限公司 2014 年半年度报告




1. Paraphrase

1. Paraphrase
   In this Report, except otherwise indicated, these words and expressions shall have the meanings
   as follows:
   Paraphrase for generally-used expressions
   CSRC                            means    China Securities Regulatory Commission
                                            Shanghai Regulatory Bureau of China Securities
   SSRB                            means
                                            Regulatory Commission
   Huayi Group                     means    Shanghai Huayi (Group) Company
   The Company, Company, or
                                   means    Shanghai Chlor-Alkali Chemical Co., Ltd.
   Chlor-Alkali Chemical
                                            Molecular formula: NaOH; a strong soluble alkali.
                                            Sodium hydroxide is easy to be solved into water, has
                                            strong alkalinity, and can supply Na+ ion. These
   Sodium hydroxide                means    properties make it used widely in the industries such
                                            as soap-making, textile industry, printing and dyeing,
                                            blanching,    papermaking,      petroleum     refining,
                                            metallurgy and other chemical industries.
                                            Molecular formula: Cl2. As an important chemical
                                            raw material, chlorine gas is widely used in the
                                            industries such as papermaking, printing and dyeing,
   Chlorine gas                    means    pigment, bleaching powder, textile industry, chemical
                                            fiber, greasem petroleum, rubber, plastic, pharmacy,
                                            disinfection, agricultural pesticide, metallurgy and
                                            electronic industry.
                                            The Company's production for paste resin mainly
                                            adopts two processes, mixing method and seed
   Paste resin                     means    emulsion polymerization, and the paste resin is mainly
                                            used in the products such as the artificial leather, floor
                                            leather, wall paper, toy and bottle cap.
                                            The special resin produced by the Company is mainly
                                            the customer specially-used material, the medical
                                            resin with high polymeric level such as plasma bag,
   Special resin                   means
                                            infusion tube and the seal with high elasticity and the
                                            resin specially used for primary coating in
                                            automobiles.
                                            Chlorinated polyvinyl chloride, mainly used in various
   CPVC                            means    pipes with different caliber and the related fittings
                                            such as elbow and T-joint, the valve body and the wig.



                                                4
                               上海氯碱化工股份有限公司 2014 年半年度报告




3. Company Profile
1. Company information
    Chinese name of the Company          上海氯碱化工股份有限公司
    Short form                           氯碱化工
    English name of the Company          SHANGHAI CHLOR-ALKALI CHEMICAL CO.,LTD.
    Abbreviation                         SCAC
    Legal representative of the
                                         Mr. Li Jun
    Company

2. Contact information
                            Secretary of the Board of Directors        Securities representative
   Name                    Xu Peiwen                              Shen Qinyi
   Contact address         4747 Longwu Rd., Shanghai              4747 Longwu Rd., Shanghai
   Tel.                    021-64340601                           021-64342640
   Fax                     021-64341341                           021-64341438
   E-mail                  shxpw@126.com                          shqy_0227@126.com

3. Change of basic information
   In the report period the Company did not have any change in its basic information.

4. Change in information disclosure and filing site
  In the report period the Company did not have any change in its information disclosure and filing
  site.

5. The Company's share
                                           The Company's share
                          Stock exchange
    Type of share                                    Share name                Share code
                         for listing of share
                         Shanghai       Stock
   A share                                     Chlor-Alkali Chemical    600618
                         Exchange
                         Shanghai       Stock
   B share                                     Chlor-Alkali B Share     900908
                         Exchange

6. Change of the Company's registration in the report period
   During the report period the Company did not have any change of registration.




                                                      5
                              上海氯碱化工股份有限公司 2014 年半年度报告




3. Financial Highlights
1. Main accounting data and financial indexes of the Company
1) Main accounting data
                                                                                             Unit: RMB
                                                The report period    Same period of last       Increase or
             Main accounting data
                                                (January to June)           year              decrease (%)
   Operating income                              2,999,608,615.72      3,154,708,285.63                -4.92
   Net profit attributable to shareholders
                                                    -49,319,177.83          4,005,046.69           -1,331.43
   of the Company
   Net profit attributable to shareholders
   of the Company, after non-recurring              -40,722,580.54          3,098,741.53           -1,414.17
   profit or loss
   Net cash flow from operating activities          -1,495,370.65         237,877,325.49             -100.63
                                                End of the report                              Increase or
                                                                        End of last year
                                                     period                                   decrease (%)
   Net assets attributable to shareholders
                                                  2,793,548,270.65      2,848,201,003.60               -1.92
   of the Company
   Total assets                                   6,047,039,868.77      5,992,581,029.65                0.91
   Net assets per share attributable to
                                                              2.42                   2.46              -1.92
   shareholders of the Company

2) Main financial indexes
                                                    The report period     Same period         Increase or
              Main financial indexes
                                                    (January to June)      of last year      decrease (%)
   Basic earnings per share (RMB/share)                       -0.0426             0.0035           -1,317.14
   Diluted earnings per share (RMB/share)                     -0.0426             0.0035           -1,317.14
   Basic earnings per share after non-recurring
                                                             -0.0352            0.0027             -1,403.70
   profit and loss (RMB/share)
                                                                                            Decrease by 1.89
   Return on net assets, weighted average (%)                  -1.748             0.142
                                                                                            percentage points
   Return on net assets after non-recurring                                                 Decrease by 1.55
                                                               -1.444             0.109
   profit and loss, weighted average (%)                                                    percentage points

2. Items of non-recurring profit or loss
                                                                                            Unit: RMB
          Items of non-recurring profit or loss           Amount                   Note (if apply)
   Profit or loss from disposal of non-current assets     -13,897.00
   Tax return and exemption approved by the
                                                                         Fund for support to the enterprise
   authority beyond its right, or without official        724,700.00
                                                                         received
   approval file, or occasionally happened
   Government subsidy attributable to profit and
   loss of current period, except such government
   subsidy closely related to the Company's normal                       Subsidy for the project for
                                                        1,540,000.00
   business operation, meeting the regulation of                         adjustment of industrial structure
   national policy and enjoyed constantly in certain
   quota or quantity according to a certain standard
   Other non-operating revenue and expenditure
                                                           -73,266.82
   other than above items
   Other profit or loss items meeting the definition    -10,801,611.8    Compensation for disposing the


                                                   6
                          上海氯碱化工股份有限公司 2014 年半年度报告



of non-recurring profit and loss                              0   employees due to production halt
                                                                  of the Company's important
                                                                  production unit F2 caused by the
                                                                  adjustment of industrial structure
Impact of minority interests                         193,387.38
Impact of income tax                                -165,909.05
                      Total                       -8,596,597.29




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                             上海氯碱化工股份有限公司 2014 年半年度报告




4. The Report of the Board of Directors
1. Discussion and analysis of the Board of Directors on the operation status during the report period

  In the first half year of 2014, the domestic chlor-alkali industry was still in the period of adjustment
  and transformation. The enterprises were confronted with a complicated environment and the
  economical operation in this industry was in low status continuously. However, there were new
  chances of enterprise development in the fields such as energy-saving and consumption reducing,
  reorganization for optimization and industrial transformation and upgrading. In the first half year
  there were three features in the operation of the chlor-alkali industry. First is that the expanding of
  production capacity kept on reducing. The market of sodium hydroxide and PVC was very low,
  causing the decrease of the new production capacity and promoting the washout of backward
  production capacity. In the products, the Company mainly adopted substitute mode for the
  production capacity of sodium hydroxide, washing out the backward diaphragm alkali production
  unit. In the first half year for sodium hydroxide, it increased production capacity by 710,000 tons
  and washed out production capacity by 90,000 tons, actually increasing the production capacity by
  620,000 tons. For PVC (including paste resin), it increased the production capacity by 300,000 tons,
  including 160,000 tons for SPVC, and washed out production capacity by 60,000 tons, actually
  increasing the production capacity by 100,000 tons. The net increasing of production capacity is not
  very big, making the development of the industry more reasonable. Second is that the low market
  for both chlor and alkali is more serious than before. The problem of over capacity cannot be solved
  in short period. and the continuous low demand for chlor-alkali products in the market was more
  pressing in the first half year. The low status of domestic real estate market directly makes the PVC
  tubing enterprises being operated under capacity, and the alumina industry, supporting the demand
  of sodium hydroxide in former years is also in low status. Due to such reasons, the price of sodium
  hydroxide and that of PVC are all at low position, the original mode of mutual support between
  PVC and sodium hydroxide cannot be realized now, and the profitability of the chlor-alkali industry
  has been weakened greatly. Third is that the export of sodium hydroxide has been reduced. In the
  first half year the Company totally exported the sodium hydroxide of 550,000 tons, decreasing by
  20% than the same period of last year. The reducing of the export volume of sodium hydroxide has
  aggravated the pressure in domestic supply and demand market and the contradiction between
  supply and demand in domestic market, making the domestic market worse than before.

  Faced with the severe situation in production operation, the Company has unified the thoughts
  inside it, clarified the direction and implemented actively the strategy of "innovation, upgrading and
  transformation". Focusing on the important projects and the differentiation of traditional products, it
  promoted the adjustment of product structure with great efforts, realized the optimized upgrading of
  traditional industry through self innovation and application of new technology and new material,
  and strived to implement the strategy of "going out" to find the way for transformation and
  upgrading of its industrial chain with all efforts.

  Firstly, it has optimized its production and operation to reduce the loss as much as possible. Based
  on the actual conditions of its production and operation, it established the equilibration model of
  "ensuring the chlorine consumption of the downstream units in the Chemical Park, running well the
  sodium hydroxide unit, increasing the absorption of hydrogen chloride, using well the planned
  ethylene and controlling the production volume of the vinyl chloride and the subsequent PVC series
  products", adapting the market change rapidly and adjusting the load to reduce the loss as much as
  possible. Secondly, it adhered to the differentiated marketing to optimize the sales structure. Faced
  with the continuous low downstream demand and decreasing of the price of main products in the
  first half year, the Company established the working group of differentiated marketing to promote
  the work on differentiated marketing for its products, focus on high-end product market and


                                                    8
                             上海氯碱化工股份有限公司 2014 年半年度报告



  optimize the product area structure and customer structure. Thirdly, it organized the overhaul
  carefully to ensure the stable operation of the units. For the arrangement on the general overhaul in
  the Chemical Park in the first half year, the Company made a reasonable adjustment, making its
  three factories in Chaojing and Wujing arrange overhaul in suitable time in March and April.
  Adhering to the principle of Safety First, the Company made preparing and organizing carefully and
  implemented the work earnestly, going all out to realize the object of "stopping well, repairing well
  and running well" for the units and setting solid foundation for stable running of the units in the
  second half-year. Fourthly, it strived to promote the construction of the important projects to get
  benefit as early as possible. The Company's important project low-temperature ethylene storage and
  transportation unit has entered the construction stage after completion of the detailed design and all
  the approval procedures. At present the construction for pile foundation, cofferdam and tank
  foundation of the tank field has been completed, and the construction for prefabrication of the tank
  deck and the underground pipe network has been completed basically. Fifthly, it strived to promote
  the self innovation. The Company concentrated the technical and marketing force to improve the
  quality of the new material, the resin of chlorinated polyvinyl chloride, and promote the application
  and get certain effect. For the project of 40,000 tons/year high performance chlorinated polyvinyl
  chloride (first phase of the 80,000 tons/year high performance chlorinated polyvinyl chloride), the
  preparing work has formally started and entered the period for preparing the report for environment
  evaluation, safety evaluation, health evaluation and energy evaluation. It strived to promote the
  implementation of industrialization for the chlorine making through catalytic oxidation of hydrogen
  chloride, and promote the preparing of the industrialization process package for 100,000 tons/year.
  Sixthly, it strived to implement the strategy of "going out". In the first half year the Company
  established the investment committee office to coordinate the optimization of the chlorine industrial
  chain and the research on the merger, investment and other cooperation chances with the vinyl
  derivative products. The Company strived to find the investment projects suitable to its long-term
  development and realize the extending of its industrial chain and the industrial transformation
  through periodic meeting, intelligence collection, business discussion, field survey and preparing of
  investigation report.

  In the first half year of 2014, although the Company adopts a series of work measures, it still got
  heavy loss in its production operation due to the influence of downturn in the chlor-alkali market.
  From January to June, the Company realized the operating income of RMB 2,999,000,000, a
  decrease of 4.92% than the same period of last year, the net profit attributable to shareholders of the
  Company of - RMB 49,319,200, a decrease of 1331.43% than the same period of last year, and the
  investment income of RMB 27,942,000, a decrease of 26.52% than the same period of last year.

1) Analysis on main business
(1) Analysis on changes in relevant items of the financial statements
                                                                                              Unit: RMB
                                                                        Same period of last     Change
                      Item                        Current period
                                                                               year            ratio (%)
   Operating income                               2,999,608,615.72        3,154,708,285.63           -4.92
   Operating cost                                 2,735,822,866.52        2,869,885,871.18           -4.67
   Selling cost                                     102,273,725.99           87,607,814.61          16.74
   Management cost                                  173,299,334.53          159,383,395.85            8.73
   Financial expenses                                53,943,660.36           55,446,383.24           -2.71
   Net cash flow from operating activities           -1,495,370.65          237,877,325.49        -100.63
   Net cash flow from investment activities        -208,487,774.45         -196,987,958.40
   Net cash flow from financing activities           78,874,216.29         -181,503,299.64
   Expenditure on R&D                                18,948,492.14           21,148,682.00         -10.40
Note:



                                                   9
                             上海氯碱化工股份有限公司 2014 年半年度报告



(a) Net cash flow from operating activities decreased greatly than the same period of last year, and this
    is mainly caused by the decrease of the sales income, slow return of the fund and the rising of the
    cost of raw material.
(b) Net cash flow from financing increased greatly than the same period of last year, and this is mainly
    by the decrease of the debt refunded in the report period than the same period of last year.

(2) Other
 a) Detailed explanation on significant changes of the profit structure or profit source of the Company
                                                                                    Unit: RMB
                Item               Jan.-June 2014       Jan.-June 2013        Increase or decrease than
                                                                            same period of last year (%)
      Selling cost                   102,273,725.99      87,607,814.61                              16.74
      Investment income               27,942,000.31      38,024,926.29                             -26.52
      Operating profit               -47,506,499.79        9,807,263.57                          -584.40
      Non-operating revenue             2,271,433.18         364,320.06                           523.47
      Gross profit                   -45,328,963.61      10,057,468.57                           -550.70
      Net profit                     -49,319,177.83        4,005,046.69                         -1331.43
      Minority interest                 1,606,868.56       4,019,904.05                            -60.03
      income
    Note:
    (a) The increase of selling cost is mainly because the dock expansion project completed, the fixed
        assets transferred to the marketing department and the depreciation of fixed assets thus
        increased.
    (b) The decrease of the return on investment is mainly because the affiliated enterprises have
        reduced their profitability in current period.
    (c) The increase of the non-operating revenue is mainly caused by the increase of the subsidy due
        to adjustment of the industrial structure received in current period.
    (d) The decrease of the minority interest income is caused by the decrease of the profitability of
        the subsidiaries within the consolidation range.
    (e) The rising of the price of the raw material ethylene, big decrease of the gross profit of the
        leading product PVC, the decrease of the selling price of sodium hydroxide and other factors
        due to the influence of market factors, have caused the big decrease of the operating profit,
        gross profit and net profit than the same period of last year.

 b) Explanation on the progress of the operating plan
    In the first half year of 2014, the Company established the leading group and working group for
    the Five-year plan to prepare the Five-year plan (2015-2019) and design the Company's
    development blueprint. Starting from 2014, the Company will prepare the dynamic Five-year plan
    to promote the Company's development and accelerate the transformation of the Company's
    internationalization. The plan is a strong strategy forward looking and challengeable, following the
    objective laws and operable. The plan includes rich content, extensive range and strict, concrete
    and quantified indexes. The plan preparing has formally started since the end of March.
    In the first half year of 2014, faced with the economic situation and industrial situation at home
    and abroad, the Company strived to unite together and adopt many ways to overcome severe
    difficulties and reduce the loss as small as possible. Compared with the same period of last year,
    the Company's profitability in the first half year has decreased greatly. The main reasons are as
    follows:

   First is the over capacity of the industry and low demand in downstream have caused the
   continuous low product price. The low domestic demand and reduced export volume have made
   the decrease of both the price and the output of the sodium hydroxide. Compared with the same
   period of last year, this has influenced the amount over RMB 0.2 billion, having a strong impact


                                                   10
                             上海氯碱化工股份有限公司 2014 年半年度报告



   on the Company's profitability.
   Second is the high cost of the raw material and rising price of energy have made great pressure on
   the production cost. The price of ethylene, main raw material in production of the Company, has
   always kept at high position. Since January 24, 2014, the price of the industrial electricity has
   increased by RMB 0.04 per kwh. These have caused the continuous rising of the Company's
   manufacturing cost.

   Third is the adjustment of the industrial structure in Wujing and stop of the production units have
   caused increase of the settlement allowance for the employees. Due to such reason, the Company's
   compensation cost for such employees in the first half year of 2014 is more than RMB 10,000,000,
   further influencing the Company's profitability.

   Four is there are many production halt and overhaul of the units with long time, and the fluctuation
   of operating rate in downstream has influenced the Company's benefit. During March and April of
   2014, Huasheng and Tianyuan in the Chemical Park and the PVC plant in Wujing had successively
   entered the overhaul period. This overhaul has extensive range, short time, heavy mission, many
   special tasks and other difficulties, such as the production and overhaul should be made at the
   same time. However, the target and mission of the overhaul have been completed successfully
   with associated efforts of all related parties. This overhaul totally has 388 items with the
   troubleshooting time of one month, and this has brought certain impact on the Company's
   production and economic benefit. In June, the multiple unit failures in the downstream enterprises
   in the Chemical Park and the fluctuation of the operating rate have made impacts on the operating
   rate of Huasheng factory and also influenced the Company's whole benefit.

   In the second half-year of 2014, the Company will strive to control the loss of the production and
   operation, focus on the big projects such as the ethylene tank and high performance chlorinated
   polyvinyl chloride unit, make investment with physical assets, accelerate firmly the adjustment
   and transfer of Wujing area and the concentration and upgrading of the Chemical Park, implement
   firmly the strategy of "going out", enhance the level of internationalization and try to find new
   space for its sustainable development. Meanwhile, face with the big loss of PVC and the
   difficulties of oversupply in the second half-year, the Company will consider the overall halt plan
   for PVC units in Wujing to reduce the loss and speed up further the step of the adjustment in
   industrial structure in Wujing.

2) Analysis on industries, products and area operation
(1) Main business divided by sectors and products
                                                                                       Unit: RMB
                                          Main business by sectors
                                                              Increase or Increase or
                                                    Gross                             Increase or decrease
                 Operating                                    decrease of decrease of
   Sector                          Operating cost    profit                            of gross profit rate
                  income                                       operating   operating
                                                   rate (%)                                   (%)
                                                             income (%)    cost (%)
                                                                                               Decrease by 2.46
 Industry     2,721,147,679.07    2,494,920,413.02        8.31       10.10         13.13       percentage points
 Construct                                                                                      Increase by 4.30
                 15,970,188.07       13,885,064.84       13.06       23.10         17.30       percentage points
 ion
                                                                                                Increase by 6.92
 Trade          206,049,597.43      188,474,381.98        8.53      -67.08        -69.39       percentage points
                                                                                               Decrease by 0.57
 Subtotal     2,943,167,464.57    2,697,279,859.84        8.35       -5.38         -4.79       percentage points
                                         Main business by products
                 Operating                          Gross Increase or        Increase or Increase or decrease
  Product                          Operating cost
                  income                            profit decrease of       decrease of of gross profit rate


                                                  11
                                上海氯碱化工股份有限公司 2014 年半年度报告



                                                        rate (%)    operating      operating         (%)
                                                                   income (%)      cost (%)
                                                                                                Decrease by 32.06
 PVC            320,556,367.50        478,168,621.07    -49.17         -47.10         -32.62     percentage points
 Sodium                                                                                          Decrease by 2.64
                658,763,551.24        498,769,608.57     24.29          -4.29          -0.82     percentage points
 hydroxide
 Chlorine                                                                                         Increase by 0.28
               1,290,337,344.40     1,112,179,587.53     13.81         21.80           21.41      percentage point
 products
                                                                                                  Increase by 2.77
 Other          673,510,201.43        608,162,042.67      9.70         -11.01         -13.66     percentage points
                                                                                                 Decrease by 0.57
 Subtotal      2,943,167,464.57     2,697,279,859.84      8.35          -5.38          -4.79      percentage point
Note:
(a) The gross profit rate of PVC decreases than the same period of last year, and this is mainly caused
    by the rising of the raw material ethylene and the decrease of the product output.

(2) Main business divided by area
                                                                                             Unit: RMB
          Area              Operating income              Increase or decrease than previous year (%)
     China                         2,793,026,269.53                                               -2.38
     Other areas                     150,141,195.04                                             -39.77
     Total                         2,943,167,464.57                                               -5.39
3) Analysis on investment
(1) General analysis on equity investment
                                                                                         Unit: RMB'0000
                                             Closing     Beginning      Increase or        Increase or
                    Item
                                             balance      balance        decrease         decrease (%)
    Long-term equity investment             50,519.40     44,785.20       5,734.20                 12.80
    Incl.: Long-term equity investment
                                           21,498.37     18,764.17        2,734.20              14.57
    measured with equity method
    Long-term equity investment
                                           29,021.03     26,021.03        3,000.00              11.53
    measured with cost method
  Analysis on reason for change of equity investment:
  (a) Long-term equity investment measured with equity method increased by 14.57% than beginning
      of the period, and this is mainly caused by the increase of long-term equity investment due to
      the investment income confirmed in current period.
  (b) Long-term equity investment measured with cost method increases by 11.53% than beginning of
      the period, and this is mainly caused by the increase of the investment in Shanghai Huayi Group
      Finance Co., Ltd.

  Information of invested companies
                                                                                         Unit: RMB'0000
                                                                                    Ratio in the
         Name of the invested                                         Investment    equity of the
                                            Business nature                                       Remark
             company                                                     cost         invested
                                                                                   company(%)
   Shanghai           Huntsman                                                                    Equity
                                      Refine of MDI and polymer        14,598.89               30
   Polyurethane Co., Ltd.                                                                         method
   Shanghai            Lianheng       Produce and sell the                                        Cost
                                                                       13,996.15               15
   Isocyanic Ester Co., Ltd.          chemicals related to raw MDI                                method
   Shanghai Huayi Tianyuan                                                                        Cost
                                      Logistics                         7,540.66           16.64
   Chemical Logistics Co., Ltd.                                                                   method


                                                   12
                              上海氯碱化工股份有限公司 2014 年半年度报告



   Shanghai     Huayi   Group                                                                               Cost
                                       Financial company                    6,000.00                 10
   Finance Co., Ltd.                                                                                        method
   Suzhou Tianyuan Logistics                                                                                Cost
                                       Logistics                                134.09           13.5
   Co., Ltd.                                                                                                method
   Beijing Yinzhao Information         Consultation for information                                         Cost
                                                                                164.61               16
   Technology Co., Ltd.                technology                                                           method

(a) Equity interest in other listed companies held                                                   Unit: RMB
                                                           Change in
    Share                      Initial   Closing balance owner's equity                   Bookkeeping          Source of
               Share name
    code                  investment cost of book value during the report                operation items         share
                                                             period
                                                                                                                Legal
                                                                                         Salable financial
   600636     3F                 360,000.00         6,818,684.40        573,622.50                              person
                                                                                         assets
                                                                                                                share
                                                                                                                Legal
              Double Coin                                                                Salable financial
   600623                        690,000.00         1,615,900.00        206,635.00                              person
              Share                                                                      assets
                                                                                                                share
              S China                                                                    Long-term              Legal
   600610     Textile          2,095,000.00         2,095,000.00                         equity                 person
              Machinery                                                                  investment             share
                                                                                         Long-term              Legal
              S Shanghai
   600688                        900,000.00          900,000.00                          equity                 person
              Petrochemical
                                                                                         investment             share
                                                                                                                Legal
                                                                                         Salable financial
   600637     BesTV                  86,967.00      2,785,553.01        -322,212.74                             person
                                                                                         assets
                                                                                                                share
                                                                                                                Legal
              Haitai                                                                     Salable financial
   600082                            20,000.00       182,000.00           -9,600.00                             person
              Development                                                                assets
                                                                                                                share
             Total             4,151,967.00        14,397,137.41        448,444.76               /                  /

(b) Equity of the financial firms held
                                                                                   Bookkeeping
                                Initial investment          Closing balance of                            Source of
      Name of the firm                                                               operation
                                 amount (RMB)               book value (RMB)                                share
                                                                                       items
                                                                                  Long-term                Legal
   Shenyin & Wanguo
                                         1,250,000               1,250,000.00     equity                   person
   Securities Co., Ltd.
                                                                                  investment                share
                                                                                  Long-term                Legal
   Bank of Shanghai Co.,
                                           150,000               7,307,758.85     equity                   person
   Ltd.
                                                                                  investment                share
             Total                       1,400,000               8,557,758.85             /                   /

(2) The entrusted financing by the non-financial firms and the investment in derivatives
(a) Entrusted financing
    In this report period the Company had no entrusted financing.

(b) Entrusted loan
    In the report period the Company had no entrusted loan.

(c) Utilization of the raised fund


                                                       13
                             上海氯碱化工股份有限公司 2014 年半年度报告



   During the report period the Company did not raise any capital or had raised capital left over from
   previous period used in this period.

(3) Analysis on main subsidiaries and joint-stock companies
(a) Operation status of the controlled companies
                                                                                  Unit: RMB'0000
                                                                       Registered                Net
            Name of company                    Business nature                    Assets scale
                                                                        capital                 profit
     Shanghai Ruisheng Enterprises
                                       Trade                                  500       5,361.74         303.02
     Co., Ltd.
     Shanghai Dakai Plastic Co.,       Plastic membrane and its
                                                                          4,347.76    14,843.71      -311.56
     Ltd.                              deep processing
     Shanghai Jinyuan Water Plant
                                       Tap water                              900       1,270.11          86.64
     Tap Water Co., Ltd.
                                       Maintenance              and
     Shanghai         Chlor-Alkali
                                       engineering construction of          3,000       3,026.88          25.01
     Machinery Co., Ltd.
                                       petrochemical devices
     Shanghai Luwei Plastics Co.,      Production for CPVC tubing
                                                                            5,000       4,196.08     -358.34
     Ltd.                              and fittings
     Shanghai Tiantai Addition         Produce antistatic agent and
                                                                            3,300     20,068.08          518.80
     Agent Co., Ltd.                   leveling agent

(b) Individual controlled subsidiaries with its net profit or its investment income's impact on the
    Company's net profit over 10%
                                                                                    Unit: RMB'0000
                                                                                                 Investment
                                                 Main          Main         Main
                                 Business                                              Net      income from
         Name of company                     product or      business     business
                                  nature                                              profit   the joint stock
                                                service      income         profit
                                                                                                  company
                               Production
                                            Chemical
      Shanghai Tiantai         and sale of
                                            reagent and      11,932.14     2,645.50   518.80           228.27
      Addition Agent Co., Ltd. chemical
                                            additive
                               products
                                            Sales of
      Shanghai Ruisheng                     chemical raw
                               Trade                          6,526.67       751.46   303.02           303.02
      Enterprises Co., Ltd.                 material and
                                            products
                               Production Production
      Shanghai Luwei Plastics and sale of for CPVC
                                                                657.46        33.59 -358.34           -250.84
      Co., Ltd.                chemical     tubing and
                               products     fittings
                               Production Plastic
      Shanghai Dakai Plastic and sale of membrane
                                                              3,895.41        28.62 -311.56            280.40
      Co., Ltd.                chemical     and its deep
                               products     processing
                               Production
                                            Refine of
      Shanghai Huntsman        and sale of
                                            MDI and         187,964.72 17,204.36 9,289.22            2,734.20
      Polyurethane Co., Ltd.   chemical
                                            polymer
                               products

(4) Projects with non-raised capital
                                                                                     Unit: RMB'0000


                                                   14
                             上海氯碱化工股份有限公司 2014 年半年度报告



                                                                Investment     Total
                        Project                                  amount in     actual
      Project name                      Project progress                                  Project income
                        amount                                   the report investment
                                                                   period     amount
     Low
     temperature
                                   In the period for making
     ethylene                                                                             Still under
                         23,845    the base plate of the             4594         5567
     storage and                                                                          construction
                                   storage tank
     transportation
     unit project

2. Proposal on profit distribution or on capital reserves transferred into share capital
1) Implementation or adjustment on the profit distribution plan in the report period
   On May 7, 2014 the Company convened 2013 annual shareholders' meeting, which examined and
   passed the Proposal on 2013 Profit Distribution. In this proposal, based on the Company's total
   share capital of 1,156,399,976 shares on December 31, 2013, the Company shall distribute cash
   dividend of RMB 0.05 (tax included) for every 10 shares held, totally distributing dividend of RMB
   5,781,999.88 to all the shareholders. The undistributed profit shall be carried forward to the next
   year. The cash dividend to the holders of B share shall be paid in US dollars.
   On June 13, 2014 the Company published an announcement on 2013 profit distribution in China
   Securities News, Shanghai Securities News, Securities Post, Hong Kong Commercial Daily and the
   website of Shanghai Stock Exchange, which specified June 18 as equity registration date for A share,
   June 23 as equity registration date for B share, June 19 as the ex-dividend date, June 19 as the date
   for distributing cash dividend of A share and July 2 as the date for distributing cash dividend of B
   share.

3. Other events disclosed
1) Forecast that the total net profit from beginning of the year to end of the next report period will
   possibly be of loss or greatly changed than the same period of last year and the explanation
   The net profit attributable to shareholders of the Company from January to September of 2013 was
   - RMB 39,770,000, and from January to June of 2014, - RMB 49,320,000. The price tendency of
   the Company's main products in the third quarter of 2014 will still not be too optimistic. Therefore,
   the net profit at end of next report period will still decrease greatly.

2) The explanation of the Board of Directors and the Supervisory Committee on the Non-standard
   Auditor's Report by public accounting firm
√ Not applicable




                                                  15
                            上海氯碱化工股份有限公司 2014 年半年度报告




5. Major Events
1. Significant lawsuits, arbitrations and events generally questioned by the media
   In the report period the Company did not have any significant lawsuit, arbitration and event
   questioned by the media.

2. Events related to bankruptcy and reorganization
   In the report period the Company had no events related to bankruptcy and reorganization.

3. Assets transaction and business merger
√ Not applicable

4. Equity incentive of the Company and the influences
√ Not applicable

5. Significant related transactions
1) Related transactions in routine operation
(1) The events disclosed in provisional announcement and having no subsequent implementing
    progress or change
                                Description of event                                      Index
    Based on the principle of fairness and reasonableness, mutual advantage
    and mutual benefit and voluntaries and good faith, the Company,
                                                                             China      Securities   News,
    Shanghai Huayi (Group) Company and Shanghai Huayi Group Finance
                                                                             Shanghai Securities News,
    Co., Ltd. signed a frame agreement on finance service of 3 parties,
                                                                             Securities Post and Hong Kong
    through which Shanghai Huayi (Group) Company shall make use of the
                                                                             Commercial Daily and the
    self advantage for short-term financing and bond issuing and Shanghai
                                                                             website of Shanghai Stock
    Huayi Group Finance Co., Ltd. shall provide the Company with finance
                                                                             Exchange: www.sse.com.cn on
    service as a non-banking financial institution to meet the Company's
                                                                             May 29, 2012.
    requirements for reducing financing cost in developing its business. The
    valid period of the agreement is 3 years.

(2) Events not disclosed in provisional announcement
                                                                                        Unit: RMB'0000
                                                                                                   Ratio in total
                                                                        Pricing
                                                       Content of                    Amount of       amount of
         Related         Related    Type of related                   principle of
                                                          related                       related     transactions
    transaction party    relation     transaction                        related
                                                       transaction                   transaction     with same
                                                                      transaction
                                                                                                      type (%)
                      Controlled
   Shanghai Wujing
                      subsidiary
   Chemical   Co.,                                                                        763.24            0.38
                      of parent
   Ltd.
                      company
                      Controlled
   Shanghai
                      subsidiary                                     Settled as
   Carbonization                 Purchase              Material                           559.51            0.28
                      of parent                                      per agreed
   Co., Ltd.                     goods                 purchase
                      company                                        price
   Shanghai Huayi     Controlled
   Tianyuan           subsidiary
                                                                                           43.37            0.02
   Chemical Logistics of parent
   Co., Ltd.          company
   Shanghai           Controlled                                                           70.97            0.04

                                                  16
                          上海氯碱化工股份有限公司 2014 年半年度报告



 Xintianyuan          subsidiary
 Chemical             of parent
 Transport   Co.,     company
 Ltd.
                        Wholly
 Shanghai               owned
 Chlor-Alkali           subsidiary                                      301.40    0.15
 Creation Co., Ltd.     of parent
                        company
                        Wholly
 Shanghai Huayi
                        owned
 Group Equipment
                        subsidiary                                       88.36    0.04
 Engineering Co.,
                        of parent
 Ltd.
                        company
                        Wholly
 Shanghai
                        owned
 Chemical Supply
                        subsidiary                                       16.98    0.01
 and      Marketing
                        of parent
 Co., Ltd.
                        company
                        Wholly
Shanghai Huayi
                        owned
 New Energy
                        subsidiary                                      783.76    0.39
 Chemical Sales
                        of parent
 Co., Ltd.
                        company
 Shanghai Huayi         Controlled
 Information            subsidiary
                                                                           4.52   0.00
 Technology Co.,        of parent
 Ltd.                   company
                        Wholly
 Shanghai Huayi         owned
 Group Huayuan          subsidiary                                         3.02   0.00
 Chemical Co., Ltd. of parent
                        company
                        Wholly
 Shanghai Chemical      owned
 Industry Pressure
 Vessel Inspection Co., subsidiary                                      131.56    0.07
 Ltd.                   of parent
                        company
 Shanghai Huayi         Controlled
 Tianyuan               subsidiary
                                                                       1,296.41   0.65
 Chemical Logistics of parent
 Co., Ltd.              company Receive           Receive
 Shanghai                          labour         labour
                        Controlled
 Xintianyuan                       service        service
                        subsidiary
 Chemical                                                               208.44    0.10
                        of parent
 Transport       Co.,
                        company
 Ltd.
                        Wholly
 Shanghai               owned
 Chlor-Alkali           subsidiary                                     1,124.34   0.56
 Creation Co., Ltd. of parent
                        company


                                             17
                          上海氯碱化工股份有限公司 2014 年半年度报告



                      Wholly
Shanghai Huayi        owned
Engineering Co.,      subsidiary                                        401.97    0.20
Ltd.                  of parent
                      company
Shanghai Huayi        Controlled
Information           subsidiary
                                                                        118.94    0.06
Technology Co.,       of parent
Ltd.                  company
                      Controlled
Shanghai
                      subsidiary
Carbonization                                                           246.95    0.08
                      of parent
Co., Ltd.
                      company
                      Wholly
Shanghai Huayi        owned
Group Huayuan         subsidiary                                         52.48    0.02
Chemical Co., Ltd.    of parent
                      company
                      Controlled
Shanghai 3F New       subsidiary
                                                                       2,348.24   0.78
Materials Co., Ltd.   of parent
                      company
Shanghai Huayi        Controlled
Tianyuan              subsidiary
                                                                        118.50    0.04
Chemical Logistics    of parent
Co., Ltd.             company
                      Wholly
Shanghai              owned
Chlor-Alkali          subsidiary                                         28.80    0.01
                                   Sell
Creation Co., Ltd.    of parent                        Sell goods
                                   commodities
                      company
                      Wholly
Shanghai Tianyuan     owned
Group Shengde         subsidiary                                       1,264.53   0.42
Plastic Co., Ltd.     of parent
                      company
                      Wholly
                      owned
Shanghai Resin
                      subsidiary                                         23.59    0.01
Factory Co., Ltd.
                      of parent
                      company
                      Controlled
Shanghai Huayi
                      subsidiary
Acrylic Acid Co.,                                                       159.97    0.05
                      of parent
Ltd.
                      company
                      Wholly
Shanghai
                      owned
Chemical Supply
                      subsidiary                                        194.48    0.06
and     Marketing
                      of parent
Co., Ltd.
                      company
Shanghai Huayi        Controlled   Rendering of        Rendering
                                                                        723.50    0.24
Tianyuan              subsidiary   service             of service


                                                  18
                             上海氯碱化工股份有限公司 2014 年半年度报告



   Chemical Logistics of parent
   Co., Ltd.             company
                         Wholly
                         owned
   Shanghai Huayi
                         subsidiary                                                        9.43            0.00
   Polymer Co., Ltd.
                         of parent
                         company
                         Wholly
   Shanghai Huayi        owned
   Engineering Co.,      subsidiary                                                       11.68            0.00
   Ltd.                  of parent
                         company
                         Wholly
   Shanghai Tianyuan owned
   Group Shengde         subsidiary                                                     411.61             0.14
   Plastic Co., Ltd.     of parent
                         company
                                 Total                                    /          11,510.55             4.80
  The transaction between the Company and related parties, is that the Company pays expenditure for
  service and trusteeship business, for purchase of raw material, sales of product and other recurring
  business operations and for stripping non-recurring assets and non-central business. Such
  transactions are the necessary supplement for the coordination based on specialization and mutual
  transfer of predominance between the Company and its controlling shareholder and part of
  subordinate enterprises, this makes no impacts on the Company's independence, and they will
  continue to exist afterwards.
  In 2014 the total amount of the routine related transactions is estimated to be RMB 395,767,200, in
  which the related transactions with the amount of RMB 259,617,200 have been examined and
  passed by the 2012 annual shareholders' meeting, the related transactions with the amount of RMB
  130,000,000 have been got through open bidding and announced to the public, and the total amount
  of the routine related transaction increased in 2014 is estimated to be RMB 6,150,000, examined
  and approved by the united financial signing. The Company made announcement in the website of
  Shanghai Stock Exchange and China Securities News, Shanghai Securities News, Securities Post
  and Hong Kong Commercial Daily on March 21, 2014.
  The actual amount of the routine related transaction in the first half year of 2014 is RMB
  115,105,500, within the estimated range.

2) The related transactions due to purchase and sale of assets
(1) The events disclosed in provisional announcement and having subsequent implementation progress
     or change
   On November 23, 2013 the Company convened the 7th meeting of 8th Board of Directors, which
   examined and passed the Motion on the Related Transaction for Purchase of the Construction in
   Progress of D4-2 Land Lot of Shanghai Paint Co., Ltd. As evaluated by Shanghai Dongzhou Assets
   Appraisal Co., Ltd., this asset should have the book value of RMB 141,910,000 and evaluated value
   of RMB 108,419,900. On May 28, 2014 the Company and Shanghai Paint Co., Ltd. signed the
   transfer agreement with the evaluated value of RMB 108,419,900. According to the agreement, the
   purchase fund shall be paid in three in three installments, i.e., paid within five working days
   respectively after signing of the transfer agreement, formally acceptance of the application for the
   asset transfer and obtaining of the property right certificate. In the report period the Company paid
   the first fund of RMB 34,189,200 for the purchase. At present the Paint Company is just handling
   the procedure for paying the related tax.

3) Significant related transactions for joint investment
(1) The events disclosed in provisional announcement and having subsequent implementation progress

                                                  19
                            上海氯碱化工股份有限公司 2014 年半年度报告



   or change
  On November 23, 2013 the Company convened the 7th meeting of 8th Board of Directors, which
  examined and passed the Motion on the Related Transaction for Joint Capital Increase with the
  Related Party in Shanghai Huayi Group Finance Co., Ltd. The motion agreed that Shanghai Huayi
  Group Finance Co., Ltd. increased the registered capital by RMB 0.3 billion, and the shareholders
  shall make the capital increase with cash in the share holding ratio. The Company shall make
  capital increase of RMB 30,000,000 according to its shareholding ratio. On March 19, 2014, the
  Company made financial contribution of RMB 30,000,000 to complete this capital increase.

4) Related creditor's rights and debts
(1) Events not disclosed in the provisional announcement
                                                                                       Unit: RMB'0000
                                                                           Related parties provide fund to the
                                     Provide fund to related parties
                        Related                                                     listed Company
   Related party
                        relation   Beginning                  Closing      Beginning                 Closing
                                             Amount                                      Amount
                                    balance                   balance       balance                  balance
                     Wholly
 Shanghai Tianyuan owned
 Group Shengde       subsidiary of 804.04         390.30      1,194.34
 Plastic Co., Ltd.   parent
                     company
                     Controlled
 Shanghai
                     subsidiary of
 Carbonization Co.,                120.61             -9.04     111.57
                     parent
 Ltd.
                     company
                     Controlled
 Shanghai 3F New subsidiary of
                                    12.14         861.89       874.03
 Materials Co., Ltd. parent
                     company
                     Wholly
 Shanghai Huayi      owned
 Engineering Co., subsidiary of 6,645.42        1,528.81      8,174.23           1.51       5.51          7.02
 Ltd.                parent
                     company
 Shanghai
 Huntsman            Affiliated
                                    12.78         -12.78               0
 Polyurethane Co., company
 Ltd.
                     Controlled
 Shanghai Peony
                     subsidiary of
 Printing Ink Co.,                   0.44             -0.44            0
                     parent
 Ltd.
                     company
                     Controlled
 Shanghai Huayi
                     subsidiary of
 Tianyuan Chemical                   0.45         218.82       219.27
                     parent
 Logistics Co., Ltd.
                     company
                     Wholly
                     owned
 Shanghai Resin
                     subsidiary of   2.29             0.04        2.33
 Factory Co., Ltd.
                     parent
                     company
 Shanghai Paint Co., Wholly          0.47       3,418.92      3,419.39


                                                 20
                           上海氯碱化工股份有限公司 2014 年半年度报告



Ltd.                owned
                    subsidiary of
                    parent
                    company
                    Wholly
Shanghai            owned
Chlor-Alkali        subsidiary of        0          6.28      6.28
Creation Co., Ltd. parent
                    company
                    Controlled
Shanghai Huayi
                    subsidiary of
Acrylic Acid Co.,                        0         70.46     70.46
                    parent
Ltd.
                    company
                    Wholly
Shanghai Huayi
                    owned
New Energy
                    subsidiary of     0.03         -0.03         0
Chemical Sales
                    parent
Co., Ltd.
                    company
                    Wholly
Shanghai Huayi
                    owned
Group Huayuan
                    subsidiary of        0          3.53      3.53
Chemical Co.,
                    parent
Ltd.
                    company
                    Wholly
Shanghai Chemical
                    owned
Industry Pressure
                    subsidiary of                                           10.52    72.66       83.18
Vessel Inspection
                    parent
Co., Ltd.
                    company
                    Wholly
Shanghai            owned
Chlor-Alkali        subsidiary of                                             6.69   27.55       34.24
Creation Co., Ltd. parent
                    company
Shanghai            Controlled
Xintianyuan         subsidiary of
                                                                              0.96   31.92       32.88
Chemical Transport parent
Co., Ltd.           company
Shanghai Huayi      Controlling
                                                                        157,661.84   -19.80 157,642.04
(Group) Company shareholder
Shanghai Huayi      Controlled
Group Construction subsidiary of
                                                                              2.85    -2.85         0
Cost Consultation parent
Co., Ltd.           company
                    Wholly
Shanghai Huayi      owned
Group Finance Co., subsidiary of                                                0    23.89       23.89
Ltd.                parent
                    company
                    Wholly
Shanghai Chemical
                    owned
Supply and                                                                    25.3    -4.94      20.36
                    subsidiary of
Marketing Co., Ltd.
                    parent


                                              21
                                 上海氯碱化工股份有限公司 2014 年半年度报告



                       company
 Shanghai Huayi        Controlled
 Information           subsidiary of
                                                                                           0         1.15            1.15
 Technology Co., parent
 Ltd.                  company
Total                                 7,598.67        6,476.76    14,075.43      157,709.67      135.09 157,844.76
During the report period the amount of the
fund supplied by the Company to its
                                                                                                             64,767,600
controlling shareholder and subsidiaries
(RMB)
Balance of the fund supplied by the Company
to its controlling shareholder and subsidiaries                                                             140,754,300
(RMB)
                                                     Formed from purchase and sale in regular production
Reason for related creditor's rights and debts
                                                     operation
Impacts of related creditor's rights and debts
                                                     No influence on the Company's operating results and
to the Company's operation results and
                                                     financial status
financial status

6. Important contracts and the implementation
1) Trusteeship, contracting and leasing
(1) Trusteeship
    In the report period the Company had no trusteeship.

(2) Contracting
    In the report period the Company had no contracting.

(3) Leasehold
                                                                                               Unit: RMB'0000
                                                                                          Basis for
                                         Amount
                                                     Beginning                   Income deciding Related
                                 Leased related to                 End date of                                      Related
      Lessor        Lessee                            date of                      on        the    transaction
                                 assets   leased                     leasing                                        relation
                                                      leasing                    leasing income on or not
                                           asset
                                                                                           leasing
                  Shanghai
   Shanghai       Huayi                                                                    Settled                Controlled
   Chlor-Alkali   Tianyuan       Fixed                                                     as per                  subsidiary
                                          2,956.11   09/01/2013   08/31/2014     524.70              Yes
   Chemical       Chemical       assets                                                    agreed                  of parent
   Co., Ltd.      Logistics                                                                 price                  company
                  Co., Ltd.
                  Shanghai
                                                                                                                  Wholly
   Shanghai       Tianyuan                                                                 Settled
                                                                                                                   owned
   Chlor-Alkali   Group          Fixed                                                     as per
                                           739.97    01/01/2014   12/31/2014      411.61             Yes           subsidiary
   Chemical       Shengde        assets                                                    agreed
                                                                                                                   of parent
   Co., Ltd.      Plastic Co.,                                                              price
                                                                                                                   company
                  Ltd.

2) Particulars of guarantee
√ Not applicable

3) Other significant contracts or transactions
   In the report period the Company did not have any other important contract or transaction.

7. Fulfillment of commitments
√Not applicable

                                                       22
                            上海氯碱化工股份有限公司 2014 年半年度报告



8. Punishment to the listed Company and its Directors, Supervisors, senior executives, shareholders
   with 5% or higher equity interest, actual controller and purchaser and the correction status
   In the report period the Company and its Directors, Supervisors, senior executives, shareholders
   with 5% or higher equity interest, actual controller and purchaser all had not been checked,
   punished and publicly reprimanded by China Securities Regulatory Committee, nor publicly
   condemned by the stock exchange.




                                                23
                            上海氯碱化工股份有限公司 2014 年半年度报告




6. Changes in Shareholding and Particulars of Shareholders
1. Change of share capital
1) Table of change of share capital
(1) Table of change of share capital
During the report period the Company did not have any change in the total number of shares and the
structure of the share capital.

2) Change of shares with limited sales condition
   During the report period the Company did not have any change in shares with limited sales
   condition.

2. Information of shareholders
1) Total number of shareholders and the top 10 shareholders holding more than 5% of the Company's
   total share capital at end of the report period
                                                                                           Unit: Share
    Number of
    shareholders at end               107,287, including 45,372 holders of A share and 61,915 holders of B share
    of the report period
                                                      Top 10 shareholders
                                                                                  Increase     Shares
                                                                                      or         with
                                                                                                           Shares
                                         Nature of      Shareholding     Shares   decrease     limited
         Name of shareholder                                                                             pledged or
                                        shareholder       ratio (%)       held      in the       sales
                                                                                                           frozen
                                                                                    report   conditions
                                                                                   period        held
    Shanghai Huayi (Group)
                                         State-owned            50.29 581,592,347          0           0    None
    Company
    SCBHK A/C BBH S/A
    VANGUARD EMERGING                        Overseas
                                                                 0.75   8,649,032          0           0    None
    MARKETS STOCK INDEX                  legal person
    FUND
                                         State-owned
    Bank of China Wuxi Branch                                    0.23   2,605,981          0           0    None
                                         legal person
    VANGUARD TOTAL
                                             Overseas
    INTERNATIONAL STOCK                                          0.20   2,261,300   421,100            0    None
                                         legal person
    INDEX FUND
    Shanghai Huayi Group                 State-owned
                                                                 0.16   1,848,100          0           0    None
    Investment Co., Ltd.                 legal person
                                            Domestic
    Chen Cailin                                                  0.12   1,399,248          0           0    None
                                       natural person
    Customer credit trading
    guarantee securities account of             Other            0.11   1,230,248 1,230,248            0    None
    Anxin Securities Co., Ltd.
    CB LONDON A/C LEGAL
    AND GENERAL                              Overseas
                                                                 0.10   1,200,450   100,000            0    None
    ASSURANCE (PENSIONS                  legal person
    MANAGEMENT) LTD
          Zhongrun Economic               State-owned
                                                                 0.10   1,133,000          0           0    None
         Development Co., Ltd.            legal person
    Customer credit trading                     Other            0.10   1,105,769   985,867            0    None

                                                 24
                            上海氯碱化工股份有限公司 2014 年半年度报告



   guarantee securities account of
   Haitong Securities Co., Ltd.
                                Top 10 shareholders with no limited sales condition
                                                                 Shares with no limited
                       Name of shareholder                                                        Type of share
                                                                   sales condition held
                                                                                                Renminbi ordinary
   Shanghai Huayi (Group) Company                                             581,592,347
                                                                                                               share
   SCBHK A/C BBH S/A VANGUARD EMERGING                                                              Domestic listed
                                                                                 8,649,032
   MARKETS STOCK INDEX FUND                                                                    foreign capital share
                                                                                                Renminbi ordinary
   Bank of China Wuxi Branch                                                     2,605,981
                                                                                                               share
   VANGUARD TOTAL INTERNATIONAL STOCK INDEX                                                         Domestic listed
                                                                                 2,261,300
   FUND                                                                                        foreign capital share
                                                                                                Renminbi ordinary
   Shanghai Huayi Group Investment Co., Ltd.                                     1,848,100
                                                                                                               share
                                                                                                    Domestic listed
   Chen Cailin                                                                   1,399,248
                                                                                               foreign capital share
   Customer credit trading guarantee securities account of Anxin                                Renminbi ordinary
                                                                                 1,230,248
   Securities Co., Ltd.                                                                                        share
   CB LONDON A/C LEGAL AND GENERAL ASSURANCE                                                        Domestic listed
                                                                                 1,200,450
   (PENSIONS MANAGEMENT) LTD                                                                   foreign capital share
                                                                                                Renminbi ordinary
   Zhongrun Economic Development Co., Ltd.                                       1,133,000
                                                                                                               share
   Customer credit trading guarantee securities account of                                      Renminbi ordinary
                                                                                 1,105,769
   Haitong Securities Co., Ltd.                                                                                share
                                Since January 12, 2009 the Company's shares have been tradable in full, and it now
                                has no shareholder with limited sales condition. Among above shareholders,
   Remark on related relations Shanghai Huayi Group Investment Co., Ltd. is a subsidiary wholly-owned
   or concerted actions         Shanghai Huayi (Group) Company and have a related relation mutually. Except
   between above                that, the Company have not learned whether the related relation is existing between
   shareholders                 the other shareholders or whether the other shareholders belong to the concerted
                                actors stipulated in the "Information Disclosure Management Method for Change
                                of Shares held by the Shareholders in the Listed Company".

3. Change of the controlling shareholder or actual controller
   During the report period the Company's controlling shareholder or actual controller were not
   changed.




                                                 25
                          上海氯碱化工股份有限公司 2014 年半年度报告




7. Particulars of Preference Share
  In the report period the Company had no preference share.




                                               26
                            上海氯碱化工股份有限公司 2014 年半年度报告




8. Particulars of Directors, Supervisors and Senior Executives
1. Change of shareholding
1) Change of the Directors, Supervisors and Senior Executives currently holding the post and leaving
   the post during the report period
   There is no change in shareholding of Directors, Supervisors and senior executives of the Company
   during the report period.

2. Change of Directors, Supervisors and senior executives
   During the report period the Company did not have any change of the Directors, Supervisors and
   senior executives.




                                                27
                            上海氯碱化工股份有限公司 2014 年半年度报告




9. Financial Report (unaudited)
1. Financial statements

                                   Consolidated Balance Sheet
                                          June 30, 2014
Prepared by: Shanghai Chlor-Alkali Chemical Co., Ltd.
                                                                                      Unit: RMB
                            Item                            Closing balance     Beginning balance
 Current assets:
     Monetary fund                                            442,262,785.02       573,468,453.52
     Settlement reserves
     Loans to other bank
     Transactional financial assets
     Notes receivable                                         352,334,665.65       378,074,710.56
     Accounts receivable                                      335,733,881.39       219,585,380.39
     Advance payment                                          264,879,481.56       230,394,610.83
     Premium receivable
     Reinsurance accounts receivable
     Contract reserve of reinsurance receivable
     Interest receivable
     Dividend receivable
     Other receivables                                          36,564,324.29        1,481,952.65
     Financial assets purchased under agreement to resell
     Inventories                                              490,416,052.46       390,476,527.64
     Non-current assets due in one year
     Other current assets
        Subtotal of current assets                          1,922,191,190.37      1,793,481,635.59
 Non-current assets:
     Disbursement of entrusted loans and advances
     Salable financial assets                                   11,402,137.41       10,926,604.39
     Held-to-maturity investments
     Long-term receivables
     Long-term equity investment                              505,194,026.64       447,852,026.33
     Investment real estate
     Fixed assets                                           3,094,292,338.46      3,313,496,420.90
     Construction in progress                                 223,704,696.08        142,900,085.66
     Engineering material                                       3,706,202.30          1,914,050.52
     Disposal of fixed assets                                     509,074.80
     Productive biological assets
     Oil gas assets
     Intangible assets                                        249,022,804.86       255,416,359.06
     Development expenditure                                   16,527,167.28         8,805,094.96
     Goodwill
     Long-term prepaid expenses                                19,444,638.22        16,776,930.53
     Deferred income tax assets                                 1,011,821.71         1,011,821.71
     Other non-current assets                                      33,770.64
        Subtotal of non-current assets                      4,124,848,678.40      4,199,099,394.06
          Total of assets                                   6,047,039,868.77      5,992,581,029.65

                                                28
                           上海氯碱化工股份有限公司 2014 年半年度报告



 Current liabilities:
       Short-term loan                                            550,700,000.00   422,800,855.65
       Loan from central bank
       Customer bank deposits and due to banks and other
       financial institutions
       Loans from financial institutions
       Transactional financial liabilities
       Notes payable
       Accounts payable                                           469,781,427.26   372,058,908.94
       Advance receipts                                           310,613,317.96   331,371,643.21
       Financial assets sold for repurchase
       Handling charges and commission payable
       Staff salary payable                                         3,354,713.38       947,961.82
       Tax payable                                                 16,812,796.23    62,085,362.46
       Interest payable                                             3,209,455.56     3,231,705.95
       Dividend payable                                             2,990,780.97     2,907,553.75
       Other payables                                             741,204,284.33   806,835,168.66
       Reinsurance accounts payable
       Reserve of insurance contract
       Customer brokerage deposits
       Securities underwriting brokerage deposits
       Non-current liabilities due in one year
       Other current liabilities
          Subtotal of current liabilities                       2,098,666,775.69 2,002,239,160.44
 Non-current liabilities:
       Long-term loan
       Bonds payable
       Long-term payables                                         950,000,000.00   950,000,000.00
       Special payables                                           107,050,000.00    96,000,000.00
       Estimated liabilities
       Liabilities for deferred income tax                          1,822,834.16     1,795,745.90
       Other non-current liabilities                                  930,800.00       930,800.00
                Subtotal of non-current liabilities             1,059,803,634.16 1,048,726,545.90
            Subtotal of liabilities                             3,158,470,409.85 3,050,965,706.34
 Owner's equity (or shareholders' equity):
       Paid-in capital (or share capital)                       1,156,399,976.00 1,156,399,976.00
       Capital reserves                                         1,593,703,837.37 1,593,255,392.61
       Less: Treasury stock
       Special reserve
       Surplus reserves                                            11,329,760.39    11,329,760.39
       Provision for normal risk
       Undistributed profit                                        32,114,696.89    87,215,874.60
       Converted difference in foreign currency statements
       Owner's equity attributed to parent company              2,793,548,270.65 2,848,201,003.60
       Minority interest                                           95,021,188.27    93,414,319.71
            Total of owner's equity                             2,888,569,458.92 2,941,615,323.31
              Total of liabilities and owner's equity           6,047,039,868.77 5,992,581,029.65
Legal representative: Mr. Li Jun Principal in charge of accounting: Mr. He Gang     Head of accounting
dept.: Mr. Lai Yonghua
                                     Balance Sheet of Parent Company


                                               29
                            上海氯碱化工股份有限公司 2014 年半年度报告



                                         June 30, 2014
Prepared by: Shanghai Chlor-Alkali Chemical Co., Ltd.
                                                                                     Unit: RMB
                            Item                            Closing balance    Beginning balance
 Current assets:
     Monetary fund                                            388,610,727.49      520,889,380.61
     Transactional financial assets
     Notes receivable                                         340,899,314.51      359,331,691.41
     Accounts receivable                                      253,878,403.17      172,900,894.31
     Advance payment                                          271,084,724.39      223,657,620.42
     Interest receivable
     Dividend receivable
     Other receivables                                         35,743,118.92        1,146,309.00
     Inventories                                              416,554,470.30      318,452,938.40
     Non-current assets due in one year
     Other current assets                                      20,000,000.00        20,000,000.00
        Subtotal of current assets                          1,726,770,758.78     1,616,378,834.15
 Non-current assets:
     Salable financial assets                                   8,434,584.40        7,516,634.40
     Held-to-maturity investments
     Long-term receivables
     Long-term equity investment                              681,200,686.47      623,858,686.16
     Investment real estate
     Fixed assets                                           2,937,970,062.88     3,147,708,955.11
     Construction in progress                                 211,320,408.46       136,595,991.98
     Engineering material                                       3,706,202.30         1,914,050.52
     Disposal of fixed assets                                     507,596.30
     Productive biological assets
     Oil gas assets
     Intangible assets                                        201,450,550.13      205,724,769.34
     Development expenditure                                   16,527,167.28        8,805,094.96
     Goodwill
     Long-term prepaid expenses                                18,624,234.60       15,829,943.15
     Deferred income tax assets
     Other non-current assets                                      33,770.64
        Subtotal of non-current assets                      4,079,775,263.46     4,147,954,125.62
          Total of assets                                   5,806,546,022.24     5,764,332,959.77
 Current liabilities:
     Short-term loan                                          492,500,000.00      368,350,855.65
     Transactional financial liabilities
     Notes payable
     Accounts payable                                         433,250,056.24      348,490,583.44
     Advance receipts                                         306,318,546.50      323,823,687.69
     Staff salary payable                                         343,078.76
     Tax payable                                               13,817,600.75       58,852,446.65
     Interest payable                                           3,209,455.56        3,231,705.95
     Dividend payable                                           1,455,904.12        1,372,676.90
     Other payables                                           769,280,823.71      833,863,795.45
     Non-current liabilities due in one year
     Other current liabilities


                                               30
                            上海氯碱化工股份有限公司 2014 年半年度报告



         Subtotal of current liabilities                   2,020,175,465.64     1,937,985,751.73
 Non-current liabilities:
       Long-term loan
       Bonds payable
       Long-term payables                                    950,000,000.00       950,000,000.00
       Special payables                                      107,050,000.00        96,000,000.00
       Estimated liabilities
       Liabilities for deferred income tax                      1,107,687.66          969,995.16
       Other non-current liabilities                              930,800.00          930,800.00
         Subtotal of non-current liabilities               1,059,088,487.66     1,047,900,795.16
            Subtotal of liabilities                        3,079,263,953.30     2,985,886,546.89
 Owner's equity (or shareholders' equity):
       Paid-in capital (or share capital)                  1,156,399,976.00     1,156,399,976.00
       Capital reserves                                    1,599,865,166.70     1,599,084,909.20
       Less: Treasury stock
       Special reserve
       Surplus reserves                                       11,329,760.39        11,329,760.39
       Provision for normal risk
       Undistributed profit                                  -40,312,834.15        11,631,767.29
 Subtotal of owner's equity (or shareholders' equity)      2,727,282,068.94     2,778,446,412.88
 Total of liabilities and owner's equity (or shareholders'
                                                           5,806,546,022.24     5,764,332,959.77
 equity)
Legal representative: Mr. Li Jun Principal in charge of accounting: Mr. He Gang    Head of accounting
dept.: Mr. Lai Yonghua


                                 Consolidated Income Statement
                                      January to June 2014
                                                                                     Unit: RMB
                                                                 Amount of         Amount of
                            Item
                                                               current period    previous period
 1. Gross operating income                                    2,999,608,615.72   3,154,708,285.63
    Incl.: Operating income                                   2,999,608,615.72   3,154,708,285.63
           Interest income
           Earned premium
           Income from handling charges and commissions
 2. Gross operating cost                                      3,075,057,115.82   3,182,925,948.35
    Incl.: Operating cost                                     2,735,822,866.52   2,869,885,871.18
           Interest expense
           Expenditure for handling charges and commissions
           Surrenders
           Net payment of claims
           Net reserve of insurance contract appropriated
           Policy dividend expenditure
           Reinsurance premium
           Business tax and extra                                 9,717,528.42     10,602,483.47
           Selling expenses                                     102,273,725.99     87,607,814.61
           Management expenses                                  173,299,334.53    159,383,395.85
           Financial expenses                                    53,943,660.36     55,446,383.24
           Loss from depreciation of assets


                                                31
                             上海氯碱化工股份有限公司 2014 年半年度报告



    Plus: Income from change of fair value (for loss filled in "
           -")
           Investment income (for loss filled in "-")            27,942,000.31           38,024,926.29
    Incl.: Investment income from affiliated enterprises and
                                                                  27,342,000.31           37,076,163.44
           joint ventures
           Exchange gain (for loss filled in "-")
 3. Operating profit (for loss filled in "-")                   -47,506,499.79            9,807,263.57
    Plus: Non-operating income                                     2,271,433.18              364,320.06
    Less: Non-operating expenses                                      93,897.00              114,115.06
    Incl.: Loss from disposal of non-current assets                   13,897.00
 4. Gross profit (for gross loss filled in "-")                 -45,328,963.61           10,057,468.57
     Less: Income tax expenses                                     2,383,345.66            2,032,517.83
 5. Net profit (net loss filled in "-")                         -47,712,309.27            8,024,950.74
    Net profit attributed to parent company's owners             -49,319,177.83            4,005,046.69
    Minority's profit and loss                                     1,606,868.56            4,019,904.05
 6. Earnings per share:
 1) Basic earnings per share                                            -0.0426                  0.0035
 2) Diluted earnings per share                                          -0.0426                  0.0035
 7. Other composite income                                           448,444.76             -625,822.39
 8. Total amount of composite income                             -47,263,864.51            7,399,128.35
 Total composite income attributed to owners of parent
                                                                 -48,870,733.07            3,379,224.30
 company
 Total composite income attributed to minority shareholders        1,606,868.56            4,019,904.05
Legal representative: Mr. Li Jun Principal in charge of accounting: Mr. He Gang           Head of accounting
dept.: Mr. Lai Yonghua


                               Income Statement of Parent Company
                                       January to June 2014
                                                                                            Unit: RMB
                                                                          Amount of           Amount of
                               Item
                                                                       current period      previous period
 1. Operating income                                                   2,779,815,871.93    2,663,293,798.77
    Less: Operating cost                                               2,560,194,870.83    2,431,190,571.71
           Business tax and extra                                          8,102,116.01        8,778,233.13
           Selling expenses                                               93,762,818.29       80,626,215.44
           Management expenses                                           141,008,324.99      128,757,453.02
           Financial expenses                                             52,312,343.68       53,541,847.21
           Loss from depreciation of assets
    Plus: Income from change of fair value (for loss filled in "-")
           Investment income (for loss filled in "-")                   27,942,000.31        37,689,412.51
    Incl.: Investment income from affiliated enterprises and joint
                                                                         27,342,000.31        37,076,163.44
           ventures
 2. Operating profit(for loss filled in "-")                           -47,622,601.56       -1,911,109.23
    Plus: Non-operating income                                             1,540,000.00          123,379.33
    Less: Non-operating expenses                                              80,000.00            3,500.00
    Incl.: Loss from disposal of non-current assets
 3. Gross profit (for total loss filled in "-")                         -46,162,601.56       -1,791,229.90
    Less: Income tax expenses                                                      0.00                0.00


                                                  32
                            上海氯碱化工股份有限公司 2014 年半年度报告



 4. Net profit (for net loss filled in "-")                        -46,162,601.56     -1,791,229.90
 5. Earnings per share:
 1) Basic earnings per share
 2) Diluted earnings per share
 6. Other composite income                                              780,257.50     -1,394,204.68
 7. Total amount of composite income                                -45,382,344.06     -3,185,434.58
Legal representative: Mr. Li Jun Principal in charge of accounting: Mr. He Gang    Head of accounting
dept.: Mr. Lai Yonghua

                                Consolidated Cash Flow Statement
                                       January to June 2014
                                                                                        Unit: RMB
                                                                       Amount of          Amount of
                               Item
                                                                     current period     previous period
 1. Cash flow from operating activities:
    Cash received from sale of goods and rendering of service        3,220,478,350.38   3,525,894,592.01
    Net increase of customers' deposit and deposit from same trade
    Net increase of loan from central bank
    Net increase of fund lent from other financial institutions
    Cash received from premium of original insurance contract
    Net cash received from reinsurance business
    Net increase of policyholder's deposits and investments
    Net increase in disposal of transactional financial assets
    Cash from receipt of interest, handling charge and commission
    Net increase of loans from financial institutions
    Net increase of fund for repurchase business
    Tax rebates received                                                   174,418.82         474,830.47
    Other cash related to operating activities received                 28,038,079.06      35,756,278.21
         Subtotal of cash inflow from operating activities           3,248,690,848.26   3,562,125,700.69
    Cash paid for purchase of goods and acceptance of service        2,830,452,562.49   2,861,818,951.69
    Net increase of customer loan and advances
    Net increase of deposit in central bank and same trade
    Cash for payment of claims due to original insurance contract
    Cash for payment of interest, handling charge and commission
    Cash for payment of policy dividend
    Cash paid to or for employees                                      165,641,377.26     241,884,852.46
    Cash paid for taxes and surcharges                                 162,008,806.77     122,996,278.85
    Other cash paid related to operating activities                     92,083,472.39      97,548,292.20
         Subtotal of cash outflow from operating activities          3,250,186,218.91   3,324,248,375.20
            Net cash flow from operating activities                     -1,495,370.65     237,877,325.49
 2. Cash flow from investment activities:
    Cash received from disinvestment                                                         307,808.78
    Cash received from investment income                                  600,000.00          59,386.80
    Net cash received from disposal of fixed assets, intangible
                                                                           13,000.00          14,294.50
    assets and other long-term assets
    Net cash received from disposal of subsidiaries and other
                                                                                            2,545,251.72
    business units
    Other cash related to investment activities received                                      23,300.00
         Subtotal of cash inflow from investment activities               613,000.00       2,950,041.80
    Cash paid for purchase of fixed assets, intangible assets and     179,100,774.45     199,933,000.20


                                                 33
                            上海氯碱化工股份有限公司 2014 年半年度报告



    other long-term assets
    Cash paid for investment                                           30,000,000.00
    Net increase of pledge loan
    Net cash paid for acquisition of subsidiaries and other business
    units
    Other cash paid related to investment activities                                           5,000.00
          Subtotal of cash outflow from investment activities         209,100,774.45    199,938,000.20
            Net cash flow from investment activities                 -208,487,774.45   -196,987,958.40
 3. Cash flow from financing activities:
    Cash received from capital contributions                                                100,000.00
    Incl.: Cash received by subsidiaries from capital contributions
                                                                                            100,000.00
           of minority shareholders
    Cash received from loan                                           542,150,000.00    498,650,000.00
    Cash received from issuing bonds
    Other cash received related to financing activities                11,050,000.00             170.39
          Subtotal of cash inflow from financing activities           553,200,000.00    498,750,170.39
    Cash paid for debt settlement                                     414,250,855.65    625,705,075.14
    Cash paid for distribution of dividend or profit or for payment
                                                                       60,074,928.06     54,545,214.89
    of interest
    Incl.: Dividend and profit paid by subsidiaries to minority
                                                                                             27,339.28
            shareholders
    Other cash paid related to financing activities                                            3,180.00
          Subtotal of cash outflow from financing activities          474,325,783.71    680,253,470.03
            Net cash flow from financing activities                    78,874,216.29   -181,503,299.64
 4. Impact of change in exchange rate on cash and cash
                                                                          -96,739.69     -3,300,784.66
     equivalents
 5. Net increase in cash and cash equivalents                        -131,205,668.50   -143,914,717.21
    Plus: Beginning balance of cash and cash equivalents              573,468,453.52    573,937,087.33
 6. Closing balance of cash and cash equivalents                      442,262,785.02    430,022,370.12
Legal representative: Mr. Li Jun Principal in charge of accounting: Mr. He Gang      Head of accounting
dept.: Mr. Lai Yonghua

                            Cash Flow Statement of Parent Company
                                     January to June 2014
                                                                                       Unit: RMB
                                                                     Amount of          Amount of
                               Item
                                                                   current period     previous period
 1. Cash flow from operating activities:
    Cash received from sale of goods and rendering of service     3,019,013,849.03    3,089,841,788.00
    Tax rebates received
    Other cash related to operating activities received              27,450,112.43       32,704,326.06
         Subtotal of cash inflow from operating activities        3,046,463,961.46    3,122,546,114.06
    Cash paid for purchase of goods and acceptance of service     2,701,488,144.39    2,535,298,831.39
    Cash paid to or for employees                                   121,785,570.89      175,743,794.82
    Cash paid for taxes and surcharges                              145,500,982.90      104,498,658.54
    Other cash paid related to operating activities                  83,444,667.33       60,007,713.18
         Subtotal of cash outflow from operating activities       3,052,219,365.51    2,875,548,997.93
           Net cash flow from operating activities                   -5,755,404.05      246,997,116.13
 2. Cash flow from investment activities:
    Cash received from disinvestment                                                       307,808.78
    Cash received from investment income                                 600,000.00        305,440.29

                                                 34
                                      上海氯碱化工股份有限公司 2014 年半年度报告



       Net cash received from disposal of fixed assets, intangible
                                                                                                 1,294.50
       assets and other long-term assets
       Net cash received from disposal of subsidiaries and other
       business units
       Other cash related to investment activities received                                     23,300.00
             Subtotal of cash inflow from investment activities              600,000.00        637,843.57
       Cash paid for purchase of fixed assets, intangible assets and
                                                                         173,186,509.08   191,957,659.97
       other long-term assets
       Cash paid for investment                                           30,000,000.00    21,000,000.00
       Net cash paid for acquisition of subsidiaries and other business
       units
       Other cash paid related to investment activities                                          5,000.00
             Subtotal of cash outflow from investment activities         203,186,509.08   212,962,659.97
               Net cash flow from investment activities                 -202,586,509.08  -212,324,816.40
    3. Cash flow from financing activities:
       Cash received from capital contributions
       Cash received from loan                                           486,500,000.00   440,000,000.00
       Cash received from issuing bonds
       Other cash received related to financing activities                11,050,000.00
             Subtotal of cash inflow from financing activities           497,550,000.00   440,000,000.00
       Cash paid for debt settlement                                     362,350,855.65   555,505,075.14
       Cash paid for distribution of dividend or profit or for payment
                                                                          59,039,144.65    51,794,489.74
       of interest
       Other cash paid related to financing activities
             Subtotal of cash outflow from financing activities          421,390,000.30   607,299,564.88
               Net cash flow from financing activities                    76,159,999.70  -167,299,564.88
    4. Impact of change in exchange rate on cash and cash
                                                                             -96,739.69     -3,300,784.66
        equivalents
    5. Net increase in cash and cash equivalents                        -132,278,653.12  -135,928,049.81
       Plus: Beginning balance of cash and cash equivalents              520,889,380.61   495,362,517.37
    6. Closing balance of cash and cash equivalents                      388,610,727.49   359,434,467.56
   Legal representative: Mr. Li Jun Principal in charge of accounting: Mr. He Gang      Head of accounting
   dept.: Mr. Lai Yonghua


                              Consolidated Statement of Changes in Owners' Equity
                                               January to June 2014
                                                                                                             Unit: RMB
                                                                    Amount of current period
                                       Owner's equity attributed to parent company
       Item                                                                                                           Total of owner's
                       Paid-in capital (or                                        Undistributed   Minority interest
                                            Capital reserves Surplus reserves                                         equity
                         share capital)                                                profit
1. Balance at end
                       1,156,399,976.00    1,593,255,392.61     11,329,760.39    87,215,874.60    93,414,319.71       2,941,615,323.31
   of last year
   Plus: Change in
   accounting
   policy
   Correction     of
   errors         in
   previous period
    Other
2. Balance at
                       1,156,399,976.00    1,593,255,392.61     11,329,760.39    87,215,874.60    93,414,319.71       2,941,615,323.31
   beginning of the


                                                              35
                                    上海氯碱化工股份有限公司 2014 年半年度报告


   year
3. Increase or
   decrease of
   current period                              448,444.76                     -55,101,177.71    1,606,868.56     -53,045,864.39
   (for decrease
   filled in "-")
1) Net profit                                                                 -49,319,177.83    1,606,868.56     -47,712,309.27
2) Other composite
                                               448,444.76                                                           448,444.76
   income
Subtotal of above
                                               448,444.76                     -49,319,177.83    1,606,868.56     -47,263,864.51
1) and 2)
3) Capital
   contributed or
   reduced by the
   owner
(1) Capital
   contributed by
   the owner
(2) Payment for
   shares attributed
   into owner's
   equity
(3) Other
4) Profit
                                                                               -5,781,999.88                      -5,781,999.88
   distribution
(1) Appropriated
   surplus reserves
(2) Appropriated
   provision for
   normal risk
(3) Distribution to
   owners (or                                                                  -5,781,999.88                      -5,781,999.88
   shareholders)
(4) Other
5) Internal transfer
   of owner's
   equity
(1) Capital
   reserves
   transferred into
   capital (or share
   capital)
(2) Surplus
   reserves
   transferred into
   capital (or share
   capital)
(3) Surplus
   reserves
   covering loss
(4) Other
6) Special reserve
(1) Appropriated in
   current period
(2) Used in current
   period
7) Other
4. Closing balance
                       1,156,399,976.00   1,593,703,837.37    11,329,760.39   32,114,696.89    95,021,188.27   2,888,569,458.92
   of current period



                                                             36
                                       上海氯碱化工股份有限公司 2014 年半年度报告



                                                                                                              Unit: RMB
                                                               Amount at same period of last year
                                       Owner's equity attributed to parent company
        Item                                                                                          Minority      Total of owner's
                        Paid-in capital (or                                        Undistributed
                                             Capital reserves Surplus reserves                        interest           equity
                          share capital)                                              profit
1. Balance at end
                        1,156,399,976.00    1,590,142,742.37     10,384,738.92    71,537,113.31     80,230,030.92   2,908,694,601.52
   of last year
   Plus: Change in
   accounting
   policy
   Correction      of
   errors          in
   previous period
     Other
2. Balance at
   beginning of the     1,156,399,976.00    1,590,142,742.37     10,384,738.92    71,537,113.31     80,230,030.92   2,908,694,601.52
   year
3. Increase or
   decrease of
   current period                                 -625,822.39                      4,005,046.69     11,694,344.26     15,073,568.56
   (for decrease
   filled in "-")
1) Net profit                                                                      4,005,046.69      4,019,904.05       8,024,950.74
2) Other composite
                                                  -625,822.39                                                           -625,822.39
   income
Subtotal of above
                                                  -625,822.39                      4,005,046.69      4,019,904.05       7,399,128.35
1) and 2)
3) Capital
   contributed or
                                                                                                     7,701,779.49       7,701,779.49
   reduced by the
   owner
(1) Capital
   contributed by                                                                                    7,701,779.49       7,701,779.49
   the owner
(2) Payment for
   shares attributed
   into owner's
   equity
(3) Other
4) Profit
                                                                                                       -27,339.28         -27,339.28
   distribution
(1) Appropriated
   surplus reserves
(2) Appropriated
   provision for
   normal risk
(3) Distribution to
   owners (or                                                                                          -27,339.28         -27,339.28
   shareholders)
(4) Other
5) Internal transfer
   of owner's
   equity
(1) Capital
   reserves
   transferred into
   capital (or share
   capital)
(2) Surplus
   reserves


                                                                37
                                         上海氯碱化工股份有限公司 2014 年半年度报告


   transferred into
   capital (or share
   capital)
(3) Surplus
   reserves
   covering loss
(4) Other
6) Special reserve
(1) Appropriated in
   current period
(2) Used in current
   period
7) Other
4. Closing balance
                           1,156,399,976.00    1,589,516,919.98    10,384,738.92    75,542,160.00     91,924,375.18     2,923,768,170.08
   of current period
   Legal representative: Mr. Li Jun                 Principal in charge of accounting: Mr. He Gang                Head of accounting
   dept.: Mr. Lai Yonghua


                             Statement of Changes in Owners' Equity of Parent Company
                                                January to June 2014
                                                                                                                    Unit: RMB
                                                                       Amount of current period
         Item                 Paid-in capital (or                                                 Undistributed        Total of owner's
                                                       Capital reserves     Surplus reserves
                                share capital)                                                       profit                 equity
1. Balance at end of
   last year                 1,156,399,976.00        1,599,084,909.20       11,329,760.39         11,631,767.29      2,778,446,412.88
   Plus: Change in
   accounting policy
   Correction         of
   errors in previous
   period
   Other
2. Balance at
   beginning of the          1,156,399,976.00        1,599,084,909.20       11,329,760.39         11,631,767.29      2,778,446,412.88
   year
3. Increase or
   decrease of current
   period (for                                              780,257.50                         -51,944,601.44          -51,164,343.94
   decrease filled in "
   -")
1) Net profit                                                                                  -46,162,601.56          -46,162,601.56
2) Other composite
   income                                                   780,257.50                                                      780,257.50
Subtotal of above 1)
and 2)                                                      780,257.50                         -46,162,601.56          -45,382,344.06
3) Capital contributed
   or reduced by the
   owner
(1) Capital
   contributed by the
   owner
(2) Payment for
   shares attributed
   into owner's equity
(3) Other
4) Profit distribution                                                                            -5,781,999.88         -5,781,999.88
(1) Appropriated


                                                                  38
                                      上海氯碱化工股份有限公司 2014 年半年度报告


   surplus reserves
(2) Appropriated
   provision for
   normal risk
(3) Distribution to
   owners (or                                                                             -5,781,999.88         -5,781,999.88
   shareholders)
(4) Other
5) Internal transfer of
   owner's equity
(1) Capital reserves
   transferred into
   capital (or share
   capital)
(2) Surplus reserves
   transferred into
   capital (or share
   capital)
(3) Surplus reserves
   covering loss
(4) Other
6) Special reserve
(1) Appropriated in
   current period
(2) Used in current
   period
7) Other
4. Closing balance of
   current period          1,156,399,976.00      1,599,865,166.70     11,329,760.39      -40,312,834.15     2,727,282,068.94
                                                                                                           Unit: RMB
                                                            Amount at same period of last year
         Item              Paid-in capital (or                                             Undistributed     Total of owner's
                                                  Capital reserves    Surplus reserves
                             share capital)                                                    profit             equity
1. Balance at end of
   last year               1,156,399,976.00      1,597,355,411.76     10,384,738.92       3,126,574.04     2,767,266,700.72
   Plus: Change in
   accounting policy
   Correction         of
   errors in previous
   period
   Other
2. Balance at
   beginning of the        1,156,399,976.00      1,597,355,411.76     10,384,738.92       3,126,574.04     2,767,266,700.72
   year
3. Increase or
   decrease of current
   period (for                                      -1,394,204.68                        -1,791,229.90        -3,185,434.58
   decrease filled in "
   -")
1) Net profit                                                                            -1,791,229.90        -1,791,229.90
2) Other composite
   income                                           -1,394,204.68                                             -1,394,204.68
Subtotal of above 1)
and 2)                                              -1,394,204.68                        -1,791,229.90        -3,185,434.58
3) Capital contributed
   or reduced by the
   owner
(1) Capital
   contributed by the


                                                             39
                                   上海氯碱化工股份有限公司 2014 年半年度报告


   owner
(2) Payment for
   shares attributed
   into owner's equity
(3) Other
4) Profit distribution
(1) Appropriated
   surplus reserves
(2) Appropriated
   provision for
   normal risk
(3) Distribution to
   owners (or
   shareholders)
(4) Other
5) Internal transfer of
   owner's equity
(1) Capital reserves
   transferred into
   capital (or share
   capital)
(2) Surplus reserves
   transferred into
   capital (or share
   capital)
(3) Surplus reserves
   covering loss
(4) Other
6) Special reserve
(1) Appropriated in
   current period
(2) Used in current
   period
7) Other
4. Closing balance of
   current period         1,156,399,976.00    1,595,961,207.08   10,384,738.92    1,335,344.14   2,764,081,266.14
   Legal representative: Mr. Li Jun          Principal in charge of accounting: Mr. He Gang   Head of accounting
   dept.: Mr. Lai Yonghua




                                                         40
                             上海氯碱化工股份有限公司 2014 年半年度报告




10. Documents for Reference
1. Accounting statements signed and sealed by legal representative, principal in charge of accounting
   and chief of accounting department;

2. The Articles of Association of Shanghai Chlor-Alkali Co., Ltd. during the report period;

3. The formal version of all files and originals of the announcements disclosed in the newspapers
   appointed by China Securities Regulatory Committee during the report period;

4. The Company shall furnish the above documents for reference when the China Securities
  Regulatory Committee and the stock exchange request to provide them and the shareholders request
  to consult according to the requirements of the statute or the Articles of Association.

                                                                   Chairman of the Board: Li Jun
                                                            Shanghai Chlor-Alkali Chemical Co., Ltd.
                                                                          August 22, 2014




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上海氯碱化工股份有限公司 2014 年半年度报告




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