Dear stakeholders,

Let me start by saying, BASF Greater China enjoyed an incredible year in 2021.

We managed to deliver excellent results by posting the highest-ever sales of approximately €12 billion in Greater China (2020: €8.5 billion).  We achieved a dual increase in sales volume and price. The Monomers, Intermediates, Catalysts and Performance Materials divisions made outstanding contributions, thanks to strong upstream and downstream customer demand and higher prices. BASF's acquisition of Shanshan Battery Materials further contributed to the strong conclusion of the 2021 business year. 

Building on the already outstanding performance in 2020, BASF has once again demonstrated its resilience thanks to our continuous investments into local manufacturing capacities, innovation capabilities, and owing to the excellent contributions by our employees.

The construction of the Zhanjiang Verbund site is expected to further accelerate BASF’s profitable growth in the Asia Pacific region. We started the construction of the Zhanjiang Verbund sites in 2020, and the first plants are scheduled for start-up in 2022.

By 2023, we want to expand our Verbund site in Nanjing, which we jointly operate with Sinopec, to address the growing demand for specialized chemicals in the Chinese market. New manufacturing plants for selected products in the Petrochemicals and Intermediates divisions are part of this investment.

With the establishment of BASF Shanshan Battery Materials Co., Ltd., we have attained yet another key milestone by creating a strong presence of battery materials in the largest market. With more production capacities and R&D facilities, we are well positioned to serve cell manufacturers and OEM customers in the relevant markets with customized and sustainable solutions.

China continues to be the engine of global chemical output growth. It is critical for us to continue to implement BASF's corporate strategy in Greater China in order to stay ahead of the competition. In our industry, sustainability and innovation are inextricably linked and are the key differentiators in the marketplace. 

We are committed to delivering more sustainable solutions across our entire portfolio while growing our business. By breaking ground on the third phase of the Innovation Campus Shanghai, which is expected to be ready by early 2023, BASF will further strengthen its innovation capabilities in Asia.

On its journey to climate neutrality, BASF has set itself the goals to achieve net zero emissions by 2050 and reduce its greenhouse gas emissions worldwide by 25% by 2030 compared with 2018.

In Greater China, we continued to reduce carbon footprints in our operations by 4.5% in 2021 through digitalization, new technologies, and the use of renewable energy, despite a double-digit increase in production volume. In 2021, BASF secured 100% renewable electricity for its plants at the new Verbund site in Zhanjiang. BASF also joined the Renewable Direct Power Purchase (R-DPP) pilot trade in China, with the participation of six BASF sites in Shanghai, Jiangsu and Guangdong provinces. 

I am particularly pleased to report that BASF has been named the Top Employer in Greater China for the 12th consecutive year. I want to take this occasion to express my gratitude to all our employees for their dedication and contributions to the company's success. 

The future is full of uncertainties and challenges, posted by the evolving epidemic and volatile geopolitical situation. I am fully confident that we will stand the test of the crises. I look forward to working with all of our stakeholders to continue the growth momentum of BASF Greater China!