REPL::Financial Statements and Related Announcement::Second Quarter and/ or Half Yearly Results

IMMEDIATE RELEASE

Sinostar PEC More Than Triples its Net Profit For 2Q2021

• 2Q2021 Net profit to owners nearly tripled to RMB97.5 million
• Positive performance driven mainly by increase in production and higher average selling prices of products such as MTBE
• Net gearing improved on robust cash flow generation

SINGAPORE, 13 August 2021 - Sinostar PEC Holdings Limited (SGX: C9Q) ("Sinostar PEC" or the "Group"), one of the largest producers and suppliers of downstream petrochemical products within the Shandong Dongming Petrochemical Industrial Zone, today announced its financial results for the financial quarter ended 30 June 2021 ("2Q2021") and half year ended 30 June 2021 ("1H2021").

1H2021 Financial Highlights

	RMB ('million)			2Q2021		2Q2020		yoy		1H2021		1H2020		yoy
					change %				change %
	Revenue			1,138.0		732.6		55.3%		2,098.4		1,516.8		38.3%
	Gross Profit
		189.9	66.2	187.0%	299.8	79.7	276.0%
	Gross Profit Margin
			16.7%		9.0%				14.3%		5.3%
	Net Profit
		128.4	35.4	262.5%	202.8	32.7	520.7%
	Net Profit Margin
			11.3%		4.8%				9.7%		2.2%
	Net Profit
	Attributable to Equity		97.5	32.8	197.2%	156.9	33.6	366.6%
	Holders

Second quarter's Revenue rose over 50% year-on-year to RMB 1.1 billion driven by (i) an increase in average selling prices of petrochemicals produced, (ii) an increase in production

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Sinostar PEC Holdings Ltd. Company Registration No. 200609833N

• Temasek Avenue, #30-01 Millenia Tower, Singapore 039192 Tel: [phone] Fax: [phone] http://www.sinostar-pec.com

for most petrochemicals and (iii) contribution from the new polypropylene plant. Gross profit increased 187% to RMB189.9 million due to the increase in revenue as well as an expansion of gross margins from the higher average selling price of petrochemicals. As a result, 2Q2021 net profit jumped more than 3 times from a year ago to RMB128.4 million. Net profit attributable to equity holders nearly tripled to RMB97.5 million. 1HFY2021 net profit attributable to equity holders also jumped more than 4x to RMB156.9 million.

Mr Li Xiangping, Executive Chairman and Chief Executive Officer of Sinostar PEC, commented, "The strong net profit growth in 1H2021 reflects the fruits of our past investments. With the improved financial performance, the Group has also generated higher cash flow and significantly improved its balance sheet."

The Group generated a 75% increase in operating cash flow to RMB244.5 million for 1HFY2021. Net cash used in investing activities dropped to RMB24.6 million from RMB161.1 million a year ago, following the completion of the new polypropylene plant last year. This helped to improve the Group's net debt/equity ratio from 72.2% as of 31 December 2020 to 48.1% as of 30 June 2021.

	RMB (million)				1H2021			1H2020			yoy change %
	Net cash	generated	from			244.5			139.2			75.6%
	operating activities
	Net cash	used in investing
		(24.6)		(161.1)		-84.7%
	activities
	RMB (million)				30-Jun-21					31-Dec-20
	Cash and bank balances				475.2					352.0
	Bank borrowings and loans*				1,155.0					1,236.3
	Net Debt/(cash)				679.8					884.2
	Equity					1,411.9					1,224.7
	Net Gearing**				48.1%					72.2%

*Bank Borrowing + Loans from non-controlling interests ** Net Debt/Equity

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Sinostar PEC Holdings Ltd. Company Registration No. 200609833N

• Temasek Avenue, #30-01 Millenia Tower, Singapore 039192 Tel: [phone] Fax: [phone] http://www.sinostar-pec.com

	Business Segmental Breakdown
					Sales volume			yoy			Revenue			yoy %			% of total
		2QFY2021					change
				(Tons)					(RMB million)			change			revenue
							%
		Processed LPG - Total			84,036			6.7%			332.6			63.3%			29.2%
		Less Inter-company*								(205.6)		64.3%		-18.1%
		Propylene			28,596						-			-100.0%			0.0%
		Polypropylene		11,054		-4.6%		83.4		13.9%		7.3%
		Premium grade
				40,342			N/A			307.3			N.M			27.0%
		polypropylene #
		MTBE		92,573		18.7%		480.0		105.7%		42.2%
		Propylene II - Total			25,475			5.0%			174.5			28.0%			15.3%
		Less Inter-company**								(202.6)			N.M	-17.8%
		Hydrogen			3,533			3.9%			51.9			4.1%			4.6%
		Isobutylene		5,502		-8.8%		44.1		45.6%		3.9%
		Other Gas									6.8			104.1%			0.6%
		Logistic & transport								65.7		8.0%		5.8%
		related services
		TOTAL								1,138.0		55.3%		100.0%

* supplied of LPG to subsidiary Dongming Qianhai

• supplied of Propylene II to immediate holding company Dongming Hengchang
  # production from new polypropylene plant starting 1Q21

		Revenue (RMB million)		1H2021	% of sales	1H2020	% of sales
		Liquefied petroleum gas		245.6	11.7%	177.0	11.7%
		Propylene
			82.9	3.9%	139.3	9.2%
		Polypropylene
			156.1	7.4%	132.2	8.7%
		Premium grade polypropylene
			328.1	15.6%	-	0.0%
		Methyl Tert-Butyl Ether ("MTBE")
			845.9	40.3%	531.6	35.0%
		Propylene II
			125.0	6.0%	261.2	17.2%
		Hydrogen
			101.2	4.8%	96.8	6.4%
		Isobutylene
			79.3	3.8%	70.2	4.6%
		Other Gas
			10.6	0.5%	7.1	0.5%
		Transport and logistic services
			123.6	5.9%	101.5	6.7%
		Total
			2,098.4	100.0%	1,516.8	100.0%

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Sinostar PEC Holdings Ltd. Company Registration No. 200609833N 1 Temasek Avenue, #30-01 Millenia Tower, Singapore 039192 Tel: [phone] Fax: [phone] http://www.sinostar-pec.com

Business Outlook

"With an annual polypropylene production capacity of 250,000 tonnes, we can now better utilise our unprocessed propylene production capacity to further process it into high-quality polypropylene. The Group is optimistic about its FY2021 financial performance and will continue to manage its cash flow closely and focus on operational efficiency, as well as to optimise production to generate long-term value to our shareholders." Mr Li added.

As China hits the stimulus pedal this year, it is expected to surpass the U.S. as the world's largest oil refiner according to the International Energy Agency (EIA). China's economy continued to recover steadily in the first half of the year, with a 12.7 percent year-on-year GDP expansion for an average two-year growth of 5.3 percent.

Products such as polypropylene are the essential building block for everything from food packaging, clothing, cosmetics and fertilizer, even car and train interiors. This includes the demand for protective surgical masks and related products have continued to drive the demand for the Group's products such as polypropylene (Pp) fibre which is used in the manufacturing of these protective equipment.

The Group has also completed its trial productions for the new polypropylene plant, which is now in stable production and operating at an average utilization rate of 90% in 2Q2021. The new polypropylene plant adopts the latest generation technology, Spheripol, to produce high- quality polypropylene which can be used in the production of automotive accessories, food packaging, and other consumer products.

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Sinostar PEC Holdings Ltd. Company Registration No. 200609833N

• Temasek Avenue, #30-01 Millenia Tower, Singapore 039192 Tel: [phone] Fax: [phone] http://www.sinostar-pec.com

Photos of New Polypropylene Plant Below:

New polypropylene plant		Night view of the completed Pp
	plant

Products from the new Pp plant

-End-

About Sinostar PEC Holdings Ltd.

Listed on the Mainboard of the Singapore Securities Exchange Trading Limited (SGX-ST), Sinostar PEC Holdings Limited is one of the largest producers and suppliers of downstream petrochemical products within a 400km radius of its production facilities within the Dongming Petrochem Industrial Zone in Dongming County of Shandong Province, PRC. Situated within the Zhongyuan Oilfield - one of PRC's largest oilfields, and linked by a comprehensive logistics network, Sinostar is able to reach out to the nearby populous and industrialised provinces such as Shandong, Henan, Anhui, Jiangsu, Shaanxi, Hebei and Zhejiang. The Group

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Sinostar PEC Holdings Ltd. Company Registration No. 200609833N

• Temasek Avenue, #30-01 Millenia Tower, Singapore 039192 Tel: [phone] Fax: [phone] http://www.sinostar-pec.com