HONG KONG, April 7 /Xinhua-PRNewswire-FirstCall/ -- Sinopec Shanghai Petrochemical Company Limited (HKEx: 338; SSE: 600688; NYSE: SHI) announced today that, in light of high crude oil prices and stagnant selling prices for downstream oil products, the Company expects to record a net loss for the three months ended March 31, 2006 as a result of significant losses from the Company's refinery businesses. About Sinopec Shanghai Petrochemical Company Limited: Sinopec Shanghai Petrochemical Company Limited is one of the largest petrochemical companies in the PRC and was one of the first Chinese companies to make a global securities offering. Located in Jinshan District in the southwest of Shanghai, it is a highly integrated petrochemical complex which processes crude oil into a broad range of synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products. This press release contains statements of a forward-looking nature. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates' and similar statements. The accuracy of these statements may be impacted by a number of business risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks related to: the risk that the PRC economy may not grow at the same rate in future periods as it has in the last several years, or at all, including as a result of the PRC government's macro-economic control measures to curb over-heating; uncertainty as to global economic growth in future periods; the risk that prices of the Company's raw materials, particularly crude oil, will continue to increase; not being able to raise its prices accordingly which would adversely affect the Company's profitability; the risk that fluctuations in demand for the Company's products may cause the Company to either over-invest or under-invest in production capacity in one or more of its four major product categories; the risk that investments in new technologies and development cycles may not produce the benefits anticipated by management; the risk that the trading price of the Company's shares may decrease for a variety of reasons, some of which may be beyond the control of management; competition in the Company's existing and potential markets; and other risks outlined in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update this forward-looking information, except as required under applicable law. For further information, please contact: Ms. Sally Wong / Ms. Polly Tong Rikes Communications Limited Tel: +852-2520-2201 Fax: +852-2520-2241 DATASOURCE: Sinopec Shanghai Petrochemical Company Limited CONTACT: Ms. Sally Wong or Ms. Polly Tong, both of Rikes Communications Limited for Sinopec Shanghai Petrochemical Company Limited, +852-2520-2201, or fax, +852-2520-2241

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