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The Yanhua is comprised of No, 1 Chemical Works, Polypropylene Division, Chemicals Division, Synthetic Rubber Division, Polyester Division, Plastic Branch Company and Resin Application Research Institute etc.. The main business of Yanhua is producing and marketing & selling of three kinds of main petrochemical products; include (i) resin and plastic; (ii) synthetic rubber; and (iii) basic organic chemical products.

After the completion of ethylene plant expansion project of Yanhua in November, 2001, the annual design production capacity of ethylene plant has been increased from 450 KT to 710 KT. As the part of ethylene expansion project, the LDPE annual design production capacity was also expanded from 180 KT to 380 KT.

The third polypropylene plant of Yanhua was put into operation in 1998 with the annual design production capacity 200 KT, plus the production capacity of original first and second polypropylene plants 125 KT and 60 KT separately, the total annual design production capacity of polypropylene of Yanhua has been reached to 385 KT.

Yanhua completed the construction of butyl rubber plant and started the commercial business operation in the last quarter of 1999. Butyl rubber is a high performance product for its high gas sealing and anti-oxidation properties. The annual design production capacity of butyl rubber plant is 30 KT.

The annual design production capacity of cispolybutadiene (BR) and SBS plants of Yanhua are 80 KT and 6 KT separately. Through the yearly modification of the plants, the current production capacities of above plants are 12 KT and 9 KT separately.

Yanhua completed the first phenol-acetone plant capacity expansion revamp from September to November in 2003, the annual production capacity expanded from 100 KT to 160 KT, plus the other 80 KT phenol-acetone plant annual production capacity, the total annual phenol and acetone production capacity of Yanhua has been expanded from 180 KT to 240 KT.

Yanhua is a typical petrochemical products production enterprise under China Petrochemical Corporation; it is one of the largest ethylene manufacturers in China. The comparison basis on the manufacturers, Yanhua is range in the first in the total sale amount of resin and plastic in China. Basis on the calculation of sales amount takes domestic market share, all the LDPE, PP, BR, phenol and acetone products of Yanhua are in the front position in China. Basis on the indication of comparable production statistic information collected by China Petrochemical Group, Yanhua is the one of the highest efficiency enterprises in China petrochemical industry in raw material conversion and energy source application.

Since the share of Yanhua public offer and stock offer globally in June 1997, Yanhua has been implemented an effective strategy to reduce the cost and increase business profitability. Successfully developed and gradually increasing the utilizing of lower cost substituted feedstock, which is similar with the main feedstock of gas oil of ethylene plant, such as; VGO, wax oil and hydrogenated tail oil (HVGO); the ethylene expansion project (include ethylene plant, LDPE plant, butadiene acetonitrile extraction plant and benzene plant) has been completed in the end of 2001, the ethylene annual design production capacity has been increased from 450 KT to 710 KT. The economic scale benefit has been incarnated sufficiently, since the successful completion of 710 KT ethylene expansion and stable operation of the plant; Persist on the organic integration of supply, production and research, further increasing the marketing and sales level, adjusting the production scheme in time to adapt the market variation, meeting the different demands from different clients. The market analysis is enforced, the ability to the market variation is increased, the market risk is reduced and the economic benefit increasing of the enterprise is realized through the continuous implementation of sales strategy of “close to the market, keep the stable production vs sale ratio, selling at current prevailing price”; To promote the overall enterprise management level and enterprise image by completing and carrying out the internal control system with the characteristics Yanhua, and ensuring the standardization and routinization of all the works.