After about one and a half years as chairman of Shanghai Petrochemical, Wan Tao announced his resignation as chairman, the company has suffered large-scale losses for two consecutive years, and the new head of the company has a long way to go.
Shanghai Petrochemical (600688), a subsidiary of Sinopec, announced on the evening of April 12 the news of Wan Tao's resignation as chairman, and he also resigned as executive director, chairman of the strategy and ESG committee and member of the nomination committee due to work adjustments.
Wan Tao, born in January 1968, aged 56, is a veteran of Sinopec's system, and has successively held positions in the Chemical Division, Catalyst Co., Ltd., Great Wall Energy Chemical (Guizhou), Yizheng Chemical Fiber and other positions from August 2012 to July 2022.
In July 2022, Wan Tao was appointed Secretary of the Party Committee of Shanghai Petrochemical Co., Ltd., and in September 2022, he was appointed Chairman and Executive Director of Shanghai Petrochemical Co., Ltd., and he served as Chairman of Shanghai Petrochemical Corporation for about one and a half years. China Petrochemical News reported that Wan Tao had assumed the position of deputy general manager of Sinopec Group in early April.
The controlling shareholder of Shanghai Petrochemical is Sinopec Co., Ltd., which holds 50.55%, and the controlling shareholder of Sinopec is Sinopec Group, and the actual controller is the State-owned Assets Supervision and Administration Commission of the State Council.
In the past two years, Shanghai Petrochemical has fallen into a cycle of continuous losses. In 2022 and 2023, Shanghai Petrochemical's revenue will be 82.5 billion yuan and 93 billion yuan, a decrease of 7.6% and an increase of 12.7% respectively, with consecutive losses of 2.87 billion yuan and 1.41 billion yuan, with a total loss of about 4.28 billion yuan in the two years.
After Wan Tao stepped down as chairman, Vice Chairman Guan Zemin performed the duties of chairman on his behalf. Born in 1964, the 60-year-old Guan Zemin has served as the general manager of Shanghai Petrochemical since February 2020 and has been elected as an executive director and vice chairman since June.
In addition to Guan Zemin, there are two other executive directors in the management team, namely Du Jun, deputy general manager and chief financial officer, and Huang Xiangyu, deputy general manager, born in 1970 and 1968 respectively.
According to the 2023 annual report, the highest annual salary of Shanghai Petrochemical is Wan Tao, about 1.33 million yuan, followed by Guan Zemin, the general manager, less than 1.16 million yuan, a decrease of 300,000 yuan from 2022, but it is higher than the salary of Yu Baocai, president of the parent company Sinopec, which was 1.12 million yuan last year.
Du Jun, deputy general manager and chief financial officer of Shanghai Petrochemical, and Liu Gang, secretary of the board of directors, also received more than one million yuan, the chairman of the board of supervisors received 720,000 yuan, and other directors, supervisors and senior executives received between 390,000 yuan and 940,000 yuan. There are also several executives who hold shares ranging from tens of thousands to hundreds of thousands.
As of April 12, the total market value of Shanghai Petrochemical was about 30.7 billion yuan.