China Aviation Oil (S) Corp Ltd is a Singapore-headquartered, multinational investment and oil infrastructure company.

Through its investments, it commands a dominant market presence in China's jet fuel distribution sector. It also supplies nearly 100% of China's jet fuel imports, and supplements its procurement activities with international oil trading in a number of products in Singapore's open oil trading environment. CAO strives to become China's first and largest integrated oil company with significant overseas assets.

The controlling shareholder of CAO is China Aviation Oil Holding Company, (CAOHC), a large state-owned aviation transportation logistics group, directly supervised by the Central Government of China. CAOHC owns aviation oil supply infrastructure at over 100 airports throughout China. It is the eighth-largest jet fuel provider in the world, supplying jet fuel to more than a hundred foreign and Chinese airlines.

CAO currently has investments in China and overseas.

• Pudong, the fuel supply company at Shanghai Pudong International Airport, is the sole supplier of jet fuel to aircraft plying that facility.
• Bluesky, a holding company for 15 additional fuel supply companies throughout Southern and Central China, will post exceptional growth in the coming years.
• CLH, a large oil pipeline and infrastructure company operating in Spain, poses interesting long-term opportunities for business synergies as well as paying handsome dividends in the short term.
• Shuidong, an oil storage tank farm in Southern China, affords opportunities to expand distribution of imported jet fuel in that region, as well as to further develop CAO's trading operations,
• The ENOC MOUs set CAO up as a major force along the oil supply chain running from the Middle East, through Singapore, and into China. (For detailed descriptions of these investments, please see our page, "Business Strategy".)

CAO has successfully expanded its international oil trading business beyond jet fuel, to include fuel oil, gasoline, naphtha, crude oil, and petrochemical products. In order to maximise its profits, CAO has capitalised on both physical and derivatives trading, creating synergies between the two. It has also broadened its market scope to more ASEAN countries, as well as the Far East and the United States.

CAO controls virtually 100 per cent of China's jet fuel import market, up from less than 3 per cent in 1997. CAO now supplies more than one-third of the jet fuel consumed by the civil aviation sector in China. The company reduces costs of such procurement through bulk purchases and its efficient system of online tendering directly to MNCs and refineries. Its commendable performance in international oil trading and jet fuel procurement has earned it membership in the "Global Trader Programme" awarded by the Singapore Government and entitling CAO to a concessionary tax rate.

CAO has established its credibility and gained overwhelming support from international bankers. Banking facilities totalling hundreds of millions of U.S. dollars are available to CAO. At the same time, the company also enjoys open credit terms from a majority of international oil suppliers.

The company has not become complacent in its success, however. To expand further and realize its potential for growth, CAO listed its shares on the Main Board of the Singapore Exchange on December 6, 2001. CAO is the sole listed subsidiary of CAOHC, and also the first overseas Chinese-funded enterprise listed internationally on the strength of its own capital and assets outside China.

CAO has drawn up a long-term growth blueprint to expand internationally, to integrate vertically, and to continue to create shareholder value. CAO will fill out its core competency in the oil industry and become a major player in the Asian and global oil markets. It aims to become the "bellwether" firm for overseas Chinese enterprises. CAO will rely on strategic industrial investments for stability in its earnings, positioning the company on a path of high returns with sustainable growth.

CAO will move with the times, continually adapting to changing market conditions. Management and staff understand that only by continuing to create value may CAO maintain the good graces of shareholders and constituents, and will continue to strive to merit investors' good will by seeking excellence and scaling ever greater heights.