Established in 2006, British CNOOC (Hong Kong) Limited (hereinafter referred to as GKP) is based in Hong Kong, facing China and the world, hoping to bring the China market into its global strategic network. The M- 100 fuel oil and D2 diesel oil provided by GKP are directly exported from Russian and Middle Eastern ports, and delivered to China port by sea, which can be directly accepted by GKP customers. Our company believes that as the world's largest consumer of refined oil, China's refined oil market will provide huge business opportunities.

Compared with competitors, GKP has obvious geographical advantages. First of all, as a Hong Kong company, we can make full use of various financial services in Hong Kong to serve our customers. For example, based on Hong Kong's perfect banking system, bills and letters of credit are sent and received smoothly and transactions are convenient, which competitors in other regions can't do. In addition, as it is close to the mainland, GKP is easy to master market changes and new laws and policies, which enables us to better cope with the risks brought by oil market fluctuations.

GKP's close partners are Morgan Foundation in Canada and Alexander Oil Supply System Co., Ltd. in Britain. The former is a famous financial service company in North America, which mainly provides financial support for GKP, while the latter brings a broad oil trade network to GKP. The main management team of GKP is experienced financial experts, who can solve financial problems in oil trade, which is one of our greatest competitive advantages. In addition, our excellent sales staff have good market awareness, which provides solid support for developing the China market.

At present, GKP has established close cooperative relations with many multinational companies. We have also established good relations with many refineries in the Middle East and sold their products in the Asia-Pacific region. Unlike our competitors, GKP works directly with oil suppliers or their designated trade agents instead of relying on a group of middlemen, so our customers are more at ease. In the Mainland, GKP has established business relations with larger importers, agents and consumer organizations, and they are all willing to place large orders.

In 2008, as oil suppliers pay more and more attention to the China market, we expect the trade volume to increase substantially.

In terms of price, the price of oil is mainly influenced by the Organization of Petroleum Exporting Countries (OPEC), but GKP promises to consider various factors to set the price, including oil futures and transportation costs, in order to safeguard the best interests of customers.