Top executives of state-owned enterprises with billions of yuan adjusted, Zhao Dong, born in the 1970s, takes over as CEO of Sinopec

Sinopec has issued multiple important appointments: Zhao Dong takes over as the President of Sinopec, and Wan Tao and Yu Baocai are transferred to the position of Senior Vice President of the company.

The senior management of China Petroleum and Chemical Corporation (Sinopec) (600028. SH) has undergone a new adjustment. According to the Announcement of the 22nd Meeting of the 8th Board of Directors (referred to as the “Announcement”) disclosed by the company on April 28th, Yu Baocai resigned from his position as President of Sinopec and the Board appointed Zhao Dong to take over. According to the President’s nomination, the Board of Directors has appointed Wan Tao and Yu Baocai as Senior Vice Presidents of Sinopec, with a term from the date of approval by the Board of Directors until the end of the eighth term of the Board of Directors.

It is worth noting that the important personnel appointments announced by Sinopec, a listed company, are all directly taken over by the current senior management of the group company, or there may be considerations for increasing the business management of the listed company.

Zhao Dong, currently 53 years old, is a senior accountant with a doctoral degree. He is currently a director, general manager, and deputy party secretary of China Petroleum and Chemical Corporation (Sinopec Group), and also an alternate member of the 20th Central Committee.

In November 2016, Zhao Dong parachuted from PetroChina Group to Sinopec Group as the Chief Accountant; In May 2020, he was promoted to the position of Director and Deputy Secretary of the Party Group of Sinopec Group. Zhao Dong has been serving as the General Manager of the Group since June 2020.

Zhao Dong has been working in the petroleum system for a long time. Before joining Sinopec, his resume was concentrated in PetroChina Group, and his overseas business capabilities were relatively outstanding. Since the beginning of 1998, Zhao Dong has been engaged in international petroleum cooperation with China National Petroleum Corporation (CNPC) overseas. In July 2002, he has been serving as the Chief Accountant and Manager of the Financial Assets Department of CNPC International (Nile) Co., Ltd. After the end of April 2004, he was transferred back to China National Petroleum Exploration and Development Corporation and began serving as the company’s Chief Accountant in June 2008. He was fully responsible for the financial management and capital operation of the company’s headquarters and overseas investment projects.

Since September 2012, Zhao Dong joined China National Petroleum Corporation (CNPC) and successively served as the Deputy General Manager and General Manager of the Nile Company. He was transferred to Sinopec Group’s Party Committee and Chief Accountant in November 2016.

Zhao Dong has taken over the position of President of Yu Baocai, a listed company. According to the announcement, Yu Baocai resigned due to work reasons. During his previous tenure, he faithfully fulfilled his duties, worked diligently and made important contributions to the company’s production and operation management, transformation and development.

Yu Baocai is 59 years old and a senior engineer with a Master’s degree in Economics. He also has a long-term experience working in the petroleum system. He has served as the General Manager and Party Secretary of PetroChina Daqing Petrochemical Branch, the General Manager and Deputy Party Secretary of PetroChina Lanzhou Petrochemical Branch, and the General Manager of Lanzhou Petrochemical Company. In September 2008, Yu Baocai joined the group company as a member of the group’s party group and deputy general manager; Former director of PetroChina, a listed company, in May 2011.

In June 2018, Yu Baocai was transferred from the position of Deputy General Manager of PetroChina Group to Deputy General Manager of Sinopec Group and served as a member of the Group’s Party Group; In September 2020, he was appointed as Senior Vice President of Sinopec, and in November 2021, he was promoted to President of a listed company. This means that after this round of adjustment, Yu Baocai will be reinstated to his original position.

In addition, the board of directors also appointed Wan Tao as the Senior Vice President of the listed company. According to his resume, Wan Tao has been working for Sinopec System for a long time. He has served as the Executive Director, General Manager, and Party Secretary of Sinopec Yizheng Chemical Fiber Co., Ltd., as well as the Chairman and Party Secretary of Sinopec Shanghai Petrochemical Co., Ltd. (referred to as “Sinopec”, 600688. SH). In March this year, Wan Tao was promoted to the position of Party member and Deputy General Manager of Sinopec Group Company.

Sinopec is one of the largest integrated energy and chemical companies in China, mainly engaged in oil and gas exploration and development, sales, as well as chemical production and product sales. The company’s refining and ethylene production capacity ranks first in the country and is also the largest supplier of refined oil products in China.

Affected by the decrease in prices of crude oil, refined oil, and chemical products, the company achieved a total operating revenue of 3.21 trillion yuan in 2023, a year-on-year decrease of 3.2%; Realized a net profit attributable to the parent company of 60.463 billion yuan, a year-on-year decrease of 9.9%. As of the first quarter of this year, Sinopec continued to experience a decline in both revenue and net profit, with a slight year-on-year decrease of 0.2% in revenue to 789.967 billion yuan and a year-on-year decrease of 8.9% in net profit attributable to shareholders to 18.316 billion yuan.

On January 24th of this year, at a press conference held by the State Council Information Office, Xie Xiaobing, the head of the Property Rights Administration Bureau of the State owned Assets Supervision and Administration Commission of the State Council, stated that further research will be conducted to include the effectiveness of market value management in the assessment of central enterprise leaders, guiding them to pay more attention to the market performance of their controlled listed companies, timely convey confidence, stabilize expectations, increase cash dividends, and better return investors through the application of market-oriented increases, repurchases, and other means.

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