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Trading
Trading

We started our trading business in June 2015 on a trial basis and we intend to expand our expertise in the commodity markets to help build our centralized procurement platform for our construction contracting business. We trade commodities such as petroleum products, coal, chemical raw materials and others.

  • Overview
  • Business Process
  • Inventory Management

  We started our trading business in June 2015 on a trial basis and we intend to expand our expertise  in  the  commodity  markets  to  help  build  our  centralized procurement  platform  for  our construction contracting business. We believe that a centralized procurement platform could enhance our collective bargaining power with suppliers and lower our procurement costs for construction contracting projects, particularly EPC projects, which in turn would improve the profit margin of our construction contracting business. We engage in the purchase and sale of selected commodities based on business opportunity, customer demand and profitability. Such commodities primarily include petroleum products, coal and chemical raw materials.

  The following table sets forth a breakdown of the segment revenue from our trading business by product type:

  Since June 2015, we have mainly traded four types of petroleum products, including light oil, light cycle oil, mixed aromatics and MTBE. Our traded coal products mainly included thermal coal, bituminous coal and anthracite. Our traded chemical raw materials mainly included PVC.

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