The speech of Chairman Douglas Tong Hsu:
�� Welcome ladies & gentlemen. Good morning. Before we start our first-rate briefing with you, our first-rate shareholders at presence, we’re glad to update you with the total OUCC shareholders as of today 62,000, which proves that OUCC is indeed a big company. In a short while you shall see our detailed presentation, within which President shall comment on operation and Vice Chairman on market forecast and so on.
�� Basically, 2010 has been a year of great changes, in which year OUCC has progressed remarkably compared to the year before. As of 2009, OUCC went thru some adjustment following the effect of 2008. So has 2010, following the effect of transformation in 2009, started to grow and kept going up. Around the same time oil prices started uprising and changing, partly due to many unexpected factors of world-class crackers globally, and prices for petrochemical products did not turn upward accordingly until second half of 2010. In addition, the BP Gulf Coast incident and cotton materials shortage have also intrigued the already dynamic world. We have to thank management team for its effective & practical leadership thru such tough circumstances. In view of the overall performance, OUCC’s sales revenues in 2010 reached 1.24 billions NTD, an increase of 28% compared to 2009 profits after tax of 2.1 billions NTD, or EPS 2.64 of NTD, 46% increase compared to 2009. If you don’t mind a bit of exercise, please give them applause. (Clapping)
�� In regard to occupational safety, environmental health and eco-friendliness, OUCC has had significant contribution and been rewarded by MOEA, which we shall share with you later. What needs to be pointed out here is that our corporate roots shall be always remained here in Taiwan, though we shall also keep business scope expanding as we are of world level after all. Fortunately, our Oriental Petrochemical (Yangzhou) Corporation completed in 2010 and has launched production this year. More importantly, we are moving into the development of green chemicals of the so called green industry. A total new direction from non-petroleum to bio-MEG., which will be covered in details later in our presentation to you. Thank you. Let’s start today’s briefing.
�� Ladies & gentlemen, though we’ve made it all clear here, I’d like to add some statement in case there is question about the discontinuity of KuoKuang project. The truth is KuoKuang discontinued in Changhwa due to unsolved problems over eco-friendly issues, however, KuoKuang is still seeking for its possible way out in somewhere else, which is likely to be anywhere. We may not get too detailed here for you due to political reason, but I can assure you that we’re still working on it and shall keep it continue. All the report for today is concluded here.

The speech of Vice Chairman Johnny Shih:
�� Thank you, Chairman. It’s been clearly shown in the slides that OUCC’s 2010 sales revenues has an increase of 28%, profits after tax of 46% and stock dividend of 70%. The most concerned topics for everyone here may be what 2011 will be like and what the future trend shall be. Simply speaking, MEG, as of our prime & hottest product, has contributed half of the sales revenues. With 85% of MEG used in polyester, we can see its trend while rest of 15% is used in antifreezes. In 2010, Polyester has made an incredibly high growth rate of 11% compared to before, which has highlighted the increasing demand of polyester staple fibers (PSF), substitute of cotton. In three years time, we shall see the differential gap of expanding demands of cotton & polyester to be between 1% mostly for cotton and 7% for polyester. Globally speaking, the demand of polyester in 2010 is 52 million tons, which includes 36 million tons of polyester filaments while demand of cotton is 24 million tons. Proportions of filament and cotton are 64% and 36%. It is forecast that 10 years from now the demand of cotton will drop from 36% to 27%, while the demand of polyester filament will enlarge from 64% to 70%, which shows a pretty good future for polyester filament, as of substitute to cotton. MEG, on the contrary, with an annual increase rate of 6.7%, its minimum demand for the coming three years will reach 4.5 million tons, which shows a rather big shortage as total of EG new capacity globally at the same period is less than 1 million tons. Take China for example, who is the biggest manufacturer of polyester and holds 48% of its global volume, yet 70% of China’s demand for MEG still depend on importation, which is truly favorable for OUCC.
�� Our second major product is EA. OUCC has become the largest EA manufacturer in Asia this year with annual capacity reached 120K tons, 80K tons from Linyuan and 40K tons from Yangzhou. OUCC holds 8% of total global volume 1.5 million tons, which is mostly distributed in Europe and America. If we take into account the 10% annual growth of emerging market in Asia and the 260K tons of EA demanding volume in China, we are positive with the future of EA.
�� Thirdly will be the EOD product, which we just presented to you. We expect to have 40K-ton EOD plant completed by end of this year in Linyuan and 60K-ton completed by end of next year in Yangzhou. We believe it is a good timing for OUCC to launch its EOD into China’s market as currently 40% of China’s EOD demand depends on importation. So shall it be after 3 years.
�� Lastly, we’ll talk about energy as of everyone’s concern. We are well aware of the continuous quest for the substitute of energy, as the polyester, MEG and PET are all made from petroleum. Our crucial project collaborated by OUCC and FENC is to take usage of so-called agricultural wastes to produce green MEG and PTA. We expect to see the breakthroughs in the engineering of green MEG within 5 years and PTA in 10 years respectively. Above are our mid & long term development plans to share with you. Thank you.

The speech of President Alex Kuo:
�� Thank you, Mr. Chairman. My pleasure to remark on some points for our fellow shareholders. In a matter of fact, petrochemical industry has gone thru ups and downs for the past two years. OUCC has been transforming from a simply EG plant to a specialty chemical company, as Chairman just mentioned. So has everyone seen the pictures just now, our Yangzhou EOD plant shall be completed by end of this year, latest beginning of next year. By 1Q/2012, OUCC’s specialty chemical capacity shall reach 280K tons per annum, which is considered a huge undertaking in transformation to the global EO plants. What benefit is it to OUCC? OUCC may swap EOD with EG according to the market change to maximize its interests. This is why we have production and sales units meeting up at least once every two weeks to make sure our product structure is well adjusted accordingly. Ladies & gentlemen, all the brilliant figures in performance you saw certainly come from the hard work of the past year. May I also have your encouragement to our management team. (Clapping) I’d be pleased to get back to you if possible in regard to the operational performance & future development. Thank you all. (Clapping)

�� Contents of presentation:
(1) Company Introduction (2) Operation Performance (3) Market Analysis (4) Business Strategy
�� Shareholders Meeting Procedure:
The important resolutions of OUCC’s Shareholders Meeting of 2010:
(1) Items to be reported:
A. 2010 Business Report
B. 2010 Financial Report
C. Supervisors’ Report
D. Amendment of partial “BoD Meeting Regulations”
(2) Matters to be approved:
A. To accept the 2010 Business Report & Financial Report
Resolution: Approved by all shareholders present with unanimous consent.
B. To approve the appropriation of 2010 earnings
Resolution: Approved by all shareholders present with unanimous consent.
(3) Matters to be discussed:
A. To approve the amending of company bylaws
Resolution: Approved by all shareholders present with unanimous consent.
B. To approve the amending of partial clauses of ‘Procedures of Funding Third Parties’ and ‘Procedures of Endorsement & Guarantee’ Resolution: Approved by all shareholders present with unanimous consent.