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Making Concerted Efforts to Forge Ahead on a New Journey:
A Letter to Our Investors
Distinguished investors,
An old Chinese poem has a line that reads, “I find the face of vernal wind in an
easy way: Myriads of reds and violets reveal only spring.” Our new annual report is
released at a time when everything is thriving. Rongsheng Petrochemical made
great progress and once again performed admirably over the course of the previous
year with the help and support of all investors.
“Strong and firm, we will ride the wind, cleave the waves, and cross the
sea which raves.” The year 2022 was significant to the 14th Five-Year Plan and
marked the start of the second centenary goal. The year was a transition period for
the Company from “vertical and horizontal” development to comprehensive, high-
quality development. There is no denying that the overall context led us to a
difficult situation that had not been seen in our Company in many years. It included
unprecedented domestic and international complexities such as international
uncertainty, fluctuations in crude oil prices, and an economic downturn, all of which
were overlaid with numerous challenges from the downstream consumer market.
Nonetheless, we stuck to our project investment and business management
responsibilities, progressed ongoing prevention and control, and overall high-
quality production and operations, and delivered satisfactory results. In FY2022, we
earned RMB 289.1 billion in operating income, a 58% increase over the previous
Full text of 2022 Annual Report
year. The Company’s total assets reached RMB 362.6 billion at the end of the year,
up 7% from the start of the year.
In 2022, Rongsheng Petrochemical, the industry leader in China’s private
refining, saw an increase in the global influence of its brand. We were ranked eighth
in the Brand Finance Chemicals 25 ranking, 27th among C&EN’s Global Top 50
Chemical Firms for 2022, 21st among the ICIS Top 100 Chemical Companies, and
15th in Chemical Week’s Billion-Dollar Club. We are committed to dominating the
global market as a shining icon of the Chinese petrochemical and refining industry.
“At full speed, we are moving, like a horse galloping, like a hawk roaring.”
Throughout the past year, all members of the Company maintained a positive
attitude in order to overcome obstacles and move forward, making new investments
and developments. Zhejiang Petroleum & Chemical (ZPC) completed the second
phase of its refining-chemical integration project (40 million tons per year) in
January. It added a refining capacity of 20 million tons per year and a production
capacity of 6.6 million tons per year for aromatics and 1.4 million tons per year for
ethylene, further enriching and increasing the value of our chemical products. In
September, ZPC’s polycarbonate plant (260,000 tons per year) was successfully fed
and produced qualified products, increasing China’s engineering plastics self-
sufficiency. Furthermore, the PTA project (6 million tons per year) of Ningbo
Yisheng New Materials, the second phase of Shaoxing Yongsheng Technology’s
polyester film expansion project (250,000 tons per year), the second phase of
Shengyuan Chemical Fiber, and other projects moved forward smoothly. We
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announced three major projects in August of the same year, each with an investment
scale of more than RMB 100 billion, to accelerate our layout in downstream high-
end fine chemical materials. Among the products used in the projects were EVA,
DMC, PC, ABS, α-olefin, POE, adiponitrile, and PMMA. These projects are
expected to boost the average annual net profit by RMB 16.4 billion.
“We are making big strides on a journey towards a bright future.” In the
course of comprehensively promoting high-quality development, we undertake the
great mission of serving the country through industry and enhancing the
fundamental skills of corporate governance. We consolidate the key segments of our
production and operations and create a favorable environment for personnel training.
We boldly take on challenges in scientific research and innovation, enthusiastically
pursue green and low-carbon transition, and consistently lead the Company into the
fast lane of development. In 2023, our general business strategy is to adhere to the
policies of the 20th National Congress of the Communist Party of China and
governments at all levels and be more confident and determined to expand more
extensively and innovatively. We intend to continue making new investments.
While ensuring the stable and high-quality operation of the recently launched
upstream and downstream projects, we will advance and break down our business
in the high-end petrochemical industry chain, continuously expand our industrial
functions, explore new markets, and develop new profit growth points.
We may face a variety of unknown risks and challenges in the coming year, but
that should not deter us from moving forward. In the promising new era, we will
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strengthen our belief, fix our goals, and maintain craftsmanship for excellence and
patience for long-term diligence. We will pursue precision in production and
operations, increase our tenacity, and move forward without stopping. As long as
we achieve all of these goals, we will be able to seize new opportunities for growth
in the face of risks and challenges, propelling the Company to new heights.
As the world economy quickens, we will continue working with all our
investment partners to create a brighter tomorrow for Rongsheng Petrochemical!
Board of Directors of Rongsheng Petrochemical Co., Ltd.
April 2023
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Section I Important Notice, Table of Contents and Definitions
The Board of Directors, the Board of Supervisors and the directors,
supervisors and senior management of the Company confirm that the contents
in this annual report are true, accurate, and complete and have no false
representations, misleading statements or material omissions, and they will
severally and jointly accept legal responsibility for such contents.
Li Shuirong, Chairman of the Company, Wang Yafang, the person in
charge of the Company's accounting and Zhang Shaoying, the person in
charge of the Accounting Firm (Accounting Officer), hereby make
representations in respect of the truthfulness, accuracy and completeness of the
financial statements in this annual report.
All directors have attended the Board meeting to consider this annual
report.
This annual report is prepared in Chinese and English respectively. In case
of any discrepancy between the two versions, the Chinese version shall prevail.
The Company's profit distribution plan reviewed and approved by the
Board: Taking the total 9,842,382,348 shares of the Company as the base, a cash
dividend of RMB 1.50 (tax included) per 10 shares will be distributed to all
shareholders. There will be no equity dividend (tax included) or conversion of
equity reserve into share capital of the Company.
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Contents
Section I Important Notice, Table of Contents and Definitions ...................... 1
Section II Company Profile and Key Financial Indicators ............................. 1
Section III Management Discussion and Analysis ............................................ 5
Section IV Corporate Governance ....................................................................44
Section V Environmental and Social Responsibility.......................................63
Section VI Important Matters............................................................................73
Section VII Changes in Shares and Shareholders...........................................81
Section VIII Preferred Shares ............................................................................87
Section IX Bonds ..................................................................................................88
Section X Financial Reports ...............................................................................92
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Contents of Documents for Future Reference
(1) The financial statements containing signature and seals of the person in charge of the Company, the
person in charge of the accounting works and the person in charge of the Accounting Firm (Accounting Officer);
(2) The original auditor’s report with the seal of Pan-China Certified Public Accountants LLP and the
signature and seal of the certified public accountants;
(3) Written confirmation from directors, senior management and supervisors of the Company on the 2022
Annual Report;
(4) The originals of all company documents and announcements that are disclosed to the public via media
designated by CSRC during the reporting period;
(5) The place where the above-mentioned documents are maintained: Office of the Board of Directors.
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Definitions
Term Reference Definition
Company, the Company, Rongsheng
Refers to Rongsheng Petrochemical Co., Ltd.
Petrochemical
Zhejiang Rongsheng Holding Group Co., Ltd., controlling shareholder of
Rongsheng Holdings Refers to
the Company
Rongtong Logistics Refers to Zhejiang Rongtong Logistics Co., Ltd., a subsidiary of the Company
Zhejiang Rongsheng Venture Capital Co., Ltd., a subsidiary of the
Rongsheng Venture Capital Refers to
Company's controlling shareholder
ZPC Refers to Zhejiang Petroleum & Chemical Co., Ltd., a subsidiary of the Company
Zhongjin Petrochemical Refers to Ningbo Zhongjin Petrochemical Co., Ltd., a subsidiary of the Company
Yisheng Investment Refers to Dalian Yisheng Investment Co., Ltd, a subsidiary of the Company
Zhejiang Shengyuan Chemical Fiber Co., Ltd., a subsidiary of the
Shengyuan Chemical Fiber Refers to
Company
Rongxiang Chemical Fiber Refers to Rongxiang Chemical Fiber Co., Ltd., a subsidiary of the Company
Hong Kong Sheng Hui Refers to Hong Kong Sheng Hui Co., Ltd., a subsidiary of the Company
Rongsheng Petrochemical (Singapore) Pte. Ltd., a subsidiary of the
Rongsheng (Singapore) Refers to
Company
Rongsheng International Trading Refers to Rongsheng International Trading Co., Ltd., a subsidiary of the Company
Yongsheng Technology Refers to Zhejiang Yongsheng technology Co. Ltd., a subsidiary of the Company
Rongsheng (Zhoushan) New Materials Co., Ltd., a subsidiary of the
Rongsheng New Materials (Zhoushan) Refers to
Company
Zhejiang Yisheng Petrochemical Co., Ltd., a joint stock subsidiary of the
Zhejiang Yisheng Refers to
Company
Ningbo Hengyi Trading Co., Ltd., a joint stock subsidiary of the
Hengyi Trading Refers to
Company
Zhejiang Xiaoshan Rural Commercial Bank, a joint stock subsidiary of
Xiaoshan Rural Commercial Bank Refers to
the Company
Zhejiang Petroleum Refers to Zhejiang Petroleum Co., Ltd., a joint stock subsidiary of ZPC
Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd., a subsidiary of
ZPC (Singapore) Refers to
ZPC
Zhoushan Yushan Petrochemical Engineering Co., Ltd, a subsidiary of
Yushan petrochemical Refers to
ZPC
Jintang Logistics Refers to Jintang Logistics Co., Ltd, a subsidiary of ZPC
Zhejiang Dingsheng Petrochemical Engineering Co., Ltd, a joint stock
Dingsheng Petrochemical Refers to
subsidiary of ZPC
Derong Chemicals Refers to Zhejiang Derong Chemicals Co. Ltd., a joint stock subsidiary of ZPC
ENN (Zhoushan) Refers to ZPC-ENN (Zhoushan) Gas Co., Ltd., a joint stock subsidiary of ZPC
Zhejiang Yisheng New Materials Co., Ltd., a holding subsidiary of
Yisheng New Materials Refers to
Zhongjin Petrochemical
Niluoshan New Energy Refers to Ningbo Niluoshan New Energy Co., Ltd., a subsidiary of Zhongjin
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Petrochemical
Yisheng Dahua Petrochemical Co., Ltd., a subsidiary of Yisheng
Yisheng Dahua Refers to
Investment
Hainan Yisheng Petrochemical Co., Ltd., a joint stock subsidiary of
Hainan Yisheng Refers to
Yisheng Investment
Hong Kong Yisheng Refers to Hong Kong Yisheng Co., Ltd., a subsidiary of Yisheng Dahua
Dalian rongxincheng Refers to Dalian rongxincheng Trading Co., Ltd., a subsidiary of Yisheng Dahua
Dalian Kaichuang Refers to Dalian Kaichuang Trade Co., Ltd, a subsidiary of Yisheng Dahua
Zhejiang Rongtong New Materials Co., Ltd., a subsidiary of Yisheng
Rongtong New Materials Refers to
Dahua
Rongxiang (Shanghai) Chemical Co., Ltd., a subsidiary of Rongsheng
Rongxiang (Shanghai) Refers to
International Trading
Ningbo Yisheng Chemical Co., Ltd, a subsidiary of Hong Kong Sheng
Yisheng Chemical Refers to
Hui
Shanghai Brilliance Rating Refers to Shanghai Brilliance Credit Rating & Investors Service Co., Ltd.
The Securities Supervision Commission,
Refers to China Securities Regulatory Commission
CSRC
Stock exchange, SZSE Refers to Shenzhen Stock Exchange
Guosen Securities Refers to Guosen Securities Co., Ltd.
Yuan, 10,000 yuan Refers to RMB 0.00, RMB 10,000.00
Reporting period Refers to 1 Jan. 2022 to 31 Dec. 2022
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Section II Company Profile and Key Financial Indicators
I. Company Profile
Stock abbreviation Rongsheng Petrochemical Stock code 002493
Abbreviation before change (if any) None
Listed on Shenzhen Stock Exchange
Company name in Chinese 荣盛石化股份有限公司
Company abbreviation in Chinese 荣盛石化
Company name in the foreign
RONGSHENG PETROCHEMICAL CO., LTD.
language (if any)
Company abbreviation in the foreign
RSPC
language (if any)
Legal representative of the Company Li Shuirong
Registered address No.98, Hongyang Road, Yinong Town, Xiaoshan District, Hangzhou, Zhejiang Province
Zip code of the registered address 311247
Historical changes in the registered
None
address of the Company
Building of Zhejiang Rongsheng Holding Group, Yinong Town, Xiaoshan District,
Office address
Hangzhou, Zhejiang Province
Zip code of office address 311247
Company website http://www.cnrspc.com
E-mail rspc@rong-sheng.com
II. Contact information
Secretary of the Board of Directors Representative of securities affairs
Name Quan Weiying Hu Yangyang
Building of Zhejiang Rongsheng Holding Group, Building of Zhejiang Rongsheng Holding Group,
Address:
Yinong Town, Xiaoshan District, Hangzhou Yinong Town, Xiaoshan District, Hangzhou
Telephone 0571-82520189 0571-82520189
Fax 0571-82527208 extension 8150 0571-82527208 extension 8150
E-mail qwy@rong-sheng.com yangyang@rong-sheng.com
III. Information Disclosure and Archiving Place
Website of the stock exchange where the Company discloses
Shenzhen Stock Exchange (http://www.szse.cn)
the annual report
Name and website of the media selected by the Company to Securities Times, Shanghai Securities News and Cninfo
disclose the annual report (www.cninfo.com.cn)
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Archiving place for the annual report of the Company Office of the Board of Directors
IV. Registration Changes
Uniform social credit code 91330000255693873W
Changes in the Company's main business since its listing (if any) No change
Changes of previous controlling shareholders (if any) No change
V. Other Relevant Information
The accounting firm hired by the Company
Name of accounting firm Pan-China Certified Public Accountants (Special General Partnership)
Tower B, China Resources Building, No.1366, Qianjiang Road, Shengcheng
Office address of the accounting firm
District, Hangzhou
Name of signing accountants Jia Chuan, Xu Haihong
VI. Key Accounting Data and Financial Indicators
Increase or
decrease of this
2021 year compared 2020
2022 with the
previous year
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Operating income 289,094,841,6 177,024,277,4 183,074,930,2 107,264,993,1 107,264,993,1
57.91%
(RMB) 12.76 92.78 86.51 19.44 19.44
Net profit attributable
3,340,162,428 12,823,546,81 13,236,054,38 7,308,588,924 7,308,588,924
to shareholders of the -74.76%
.95 3.07 8.76 .22 .22
listed company (RMB)
Net profit attributable
to shareholders of the
2,011,613,277. 12,431,679,42 12,844,186,99 6,345,743,862 6,345,743,862
listed company net of -84.34%
71 2.84 8.53 .12 .12
non-recurring gain and
loss (RMB)
Net cash flow from
19,058,136,88 33,564,785,43 33,564,785,43 17,506,772,75 17,506,772,75
operating activities -43.22%
5.36 3.94 3.94 9.88 9.88
(RMB)
Basic earnings per
0.33 1.27 1.31 -74.81% 0.75 0.75
share (RMB per share)
Diluted earnings per
0.33 1.27 1.31 -74.81% 0.75 0.75
share (RMB per share)
Weighted average
6.87% 29.95% 30.76% -23.89% 26.34% 26.34%
return on net assets
Increase/decrea
se at the end of
End of 2022 End of 2021 the year over End of 2020
the end of the
previous year
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Before After After Before After
adjustment adjustment adjustment adjustment adjustment
362,587,416,6 337,177,246,1 338,230,598,1 241,514,928,1 241,514,928,1
Total assets (RMB) 7.20%
87.68 96.66 01.17 08.98 08.98
Net assets attributable
47,260,382,90 48,838,798,37 49,251,305,94 36,966,341,77 36,966,341,77
to shareholders of the -4.04%
1.11 2.71 8.40 5.73 5.73
listed company (RMB)
Causes and circumstances of changes in accounting policies
The Company has implemented the provisions of Interpretation No.15 of Accounting Standards for Business
Enterprises issued by the Ministry of Finance on the "accounting treatment of external sales of products or by-
products produced by enterprises before the fixed assets reach the intended usable state or during the research and
development process" since January 1,2022, and the trial operation occurred between the beginning of the earliest
period presented in the financial statements for the first time to January 1, 2022.
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in financial reports disclosed in accordance with international
accounting standards and China accounting standards
In the reporting period of the Company, there is no difference in the net profits and net assets disclosed in the
financial report under international accounting standards and China accounting standards.
2. Differences in net profits and net assets in financial reports disclosed in accordance with foreign
accounting standards and China accounting standards
In the reporting period of the Company, there is no difference in the net profits and net assets disclosed in the
financial report under foreign accounting standards and China accounting standards.
VIII. Key Quarterly Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 68,601,165,295.11 79,026,427,997.33 77,490,635,849.75 63,976,612,470.57
Net profit attributable to
3,115,867,722.70 2,250,723,677.64 83,999,008.05 -2,110,427,979.44
shareholders of the listed company
Net profit attributable to
shareholders of the listed company 2,981,777,010.18 2,264,159,321.06 158,393,369.12 -3,392,716,422.65
net of non-recurring gain and loss
Net cash flow from operating
18,597,950,648.78 12,481,119,210.83 1,599,666,393.71 -13,620,599,367.96
activities
IX. Items and Amounts of Non-recurring Gain and Loss
Unit: RMB
Item Amount of 2022 Amount of 2021 Amount of 2020
Gains or losses on disposal of non-current assets (including the part 14,208,115.78 10,301,050.55 1,845,426.60
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written-off with provision for asset impairment accrued)
Tax refund or reduction and exemption upon ultra vires approval or
379,932.50 51,916,769.65
without official approval documents
Government grants recognized in current gain and loss (excluding
grants entitled to in quota or ration according to certain criteria under
2,359,477,514.76 114,513,331.64 122,096,499.53
national policies and which are closely relevant to the Company's
normal business operations)
Fund possession cost included in current gain and loss charged to
205,188.67 2,035,569.54 589,494.21
non-financial enterprises
Income generated from investment cost for acquiring subsidiaries,
associated enterprises or joint ventures falling below the fair value of
281,497.24
share in the recognizable net asset of the investee when the
investment is conducted
Gains/losses from the entrusted investment or asset management 625,599.45 54,863.01
Except for effective hedging business related to the normal business
operations of the Company, changes in gains and losses of fair value
arising from trading financial assets, trading financial liabilities,
292,348,639.74 785,398,586.27 974,267,028.62
investment income obtained from disposal of trading financial
assets, trading financial liabilities and available-for-sale financial
assets
Gain/loss from external entrusted loans 26,123,140.37 36,617,287.74
Other non-operating revenues and expenditures except for the
-9,253,736.65 6,062,244.39 2,247,644.34
aforementioned items
Other profit/loss items falling within the definition of non-recurring
2,748,797.01 9,366,961.04 2,897,012.17
gain or loss
Less: Affected amount of income tax 371,798,967.48 134,234,216.27 122,175,835.06
Affected amount of minority shareholders' equity (after tax) 959,386,400.59 428,986,306.49 107,511,128.71
Total 1,328,549,151.24 391,867,390.23 962,845,062.10
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Section III Management Discussion and Analysis
I. Industry of the Company during the Reporting Period
The Company shall comply with the disclosure requirements for the chemical industry as set forth in the Self-
Regulatory Guidelines for Listed Companies on Shenzhen Stock Exchange No. 3 — Industry Information
Disclosure.
After experiencing a deep recession in 2021, the world economy rebounded in 2022, and the growth
momentum was obviously insufficient. In the face of the international environment with high wind and waves,
China's economic aggregate reached a new level. However, under the impact of many unexpected factors, the
operation trend of the petrochemical industry showed a trend of falling back to a high level.
(1) Global economy
In 2022, high inflation and geopolitical issues continued to impact the global economy, tightening supply
chains, rising energy and food prices, pushing up global inflation, further suppressing demand and increasing
downward pressure on the global economy. Due to the high inflation, major central banks raised interest rates
sharply, monetary policy continued to shrink, and the dollar index kept rising. The dollar index was 90.242 in
January 2021 and rose to 96.208 in December. Global commodity market volatility intensified in 2022, and
commodity prices generally continued their growth trend in 2021. According to IMF estimates, the global
commodity price index in 2022 was 227.2, an increase of 40.9% compared to that in 2021.
Brent crude oil price in 2022
USD / barrel
140
120.08
115.59 112.37
120 105.78 108.92
95.76 98.60
100 90.16 93.13 91.07
85.53
80.90
80
60
40
20
0
1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Source: Hithink RoyalFlush iFind
(2) China's economic situation
In 2022, China's economy faced triple pressures of shrinking demand, supply shocks and weakening
expectations, but China's gross domestic product reached RMB 121 trillion, an increase of 3.0% compared to that
of the previous year at constant prices; It ranked at the absolute forefront among major global economies. In 2022,
influenced by the differences in the pace of interest rate increases in some developed economies and the expected
changes, RMB depreciated and rose against some major international reserve currencies. In the fluctuation, RMB
generally showed a trend of rapid depreciation first and then a stable recovery. The closing price of the
USD/RMB rate was 6.37 at the beginning of the year, climbing to 7.32 in early November, and down to 6.95 at
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the end of the year. The Industrial Producer Price Index (PPI) increased by 4.1%, a decrease of 4.0 percentage
points compared to that of the previous year. The decline was relatively obvious. Since October, it has been
mainly affected by the increase in the base during the same period last year. The year-on-year growth rate of PPI
has shifted from positive to negative, and downstream demand was very weak, causing a huge impact on the
operation of industrial enterprises.
2022 Producer Price Index (PPI)
115
113
111
109.1 108.8 108.3 108
109
106.4 106.1
107
104.2
105
102.3
103
100.9
101 99.3
98.7 98.7
99
97
95
Jan. Feb. Mar. Apr. May. Jun. Jul.7月 Aug. Sept. Oct. Nov. Dec.
Source: National Bureau of Statistics
(3) Situation of the petrochemical industry
For the global petrochemical industry, 2022 is an extraordinary year. As an important pillar industry of
China's national economy, the petrochemical industry once again played a role as a ballast. According to the 2022
China Petroleum and Chemical Economic Operation Report, the entire petrochemical industry achieved an
operating income of RMB 16.56 trillion in 2022, an increase of 14.4% compared to that of the previous year; The
total import and export volume reached USD 1.05 trillion, an increase of 21.7% compared to that of the previous
year, and both the operating income and total import and export volume reached new historical records. Although
the total profit decreased by 2.8% compared to that of the previous year, the total amount remained above RMB
1.1 trillion.
The differentiation of the oil and gas, refining, and chemical sectors in China's petrochemical industry is
intensifying, and the overall market demand is also showing a downward trend. From the perspective of internal
sectors in the petrochemical industry, the operating income of the oil and gas sector increased by 32.9% compared
to that of the previous year, and the profit margin increased by 114.7% compared to that of the previous year; The
operating income of the refining sector increased by 18.6% compared to that of the previous year, and the profit
decreased by 87.6% compared to that of the previous year The operating revenue of the chemical industry sector
increased by 10.1%, and the profit decreased by 8.1% compared to that of the previous year. Affected by the high
prices of crude oil and natural gas, the profit differentiation of the three major sectors has significantly intensified.
The profits of the upstream oil and gas sector have increased by 1.15 times compared to that of the previous year,
while the profits of the downstream refining and chemical sectors have both shown negative growth.
In 2022, relevant ministries such as the National Development and Reform Commission and the Ministry of
Industry and Information Technology have successively issued multiple industrial policies closely related to the
petrochemical industry, which have also brought new opportunities to the petrochemical industry. Especially in
November, the "Notice on Further Improving the Work of Excluding Energy Consumption from Raw Material
Energy" was issued. This policy has been a demand of many petrochemical enterprises and petrochemical parks
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for many years, as raw material energy (coal, oil, natural gas, etc.) is the raw material for the production of
chemicals. Unlike fuel energy, the carbon used in raw material energy is converted into synthetic materials and
chemicals, and almost no greenhouse gas carbon dioxide is emitted.
S/N Time Policy
Implementation Guide for Energy Conservation and Carbon Reduction Transformation and Upgrading
1 Feb.
in Key Fields of High Energy Consumption Industries (2022 Edition)
Guiding Opinions on Promoting High Quality Development of Petrochemical and Chemical Industry
2 Mar.
during the 14th Five-Year Plan
3 Aug. Implementation Plan for Carbon Peaking in the Industrial Sector
4 Aug. Guidelines for Development and Construction of Chemical Industrial Park
5 Aug. Guiding Catalogue of Industrial Structure Adjustment
6 Aug. National Catalogue of Advanced Clean Production Technologies
7 Nov. Notice on Further Improving the Work of Excluding Energy Consumption from Raw Material Energy
II. Main Businesses of the Company during the Reporting Period
The Company shall comply with the disclosure requirements for the chemical industry as set forth in the Self-
Regulatory Guidelines for Listed Companies on Shenzhen Stock Exchange No. 3 — Industry Information
Disclosure.
(1) Main products
The Company operates the 40 million tonne refining and chemical integration project of Zhejiang Petroleum
& Chemical Co., Ltd. (hereinafter referred to as "ZPC"), the world's largest single-unit refinery. It is an important
producer of polyester, new energy materials, engineering plastics, and high value-added polyolefins in China and
Asia, with the world's largest production capacity of chemicals such as PTA and PX. At the same time, it ranks
among the world's top in production capacity of multiple products such as polyethylene, polypropylene, PET,
EVA, ABS, etc. In 2022, it was rated as the 8th most valuable chemical brand in the world by the renowned brand
evaluation agency Brand Finance in the "Chemicals 25 2022" report.
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Note: products marked by dotted line / dotted box are products under the plan.
During the reporting period, the Company's main business includes the R&D, production and sales of various
chemicals, oil and polyester products. The products are rich in types and complete in specifications, covering
many fields such as new energy, new materials, organic chemical, synthetic fiber, synthetic resin, synthetic rubber
and oil, mainly including more than 30 categories of products such as olefins and their downstream products,
aromatics and their downstream products, oil products, etc. The Company has basically realized "from a drop of
oil to everything in the world", and is constantly improving the new energy and new material industry chain on
the basis of the existing global super-large integrated refining base and complete upstream and downstream
supporting facilities.
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(2) Management measures
Against the backdrop of ever-changing internal and external environments, the Company has not only
effectively guaranteed normal and orderly business operation, but also fully completed the construction of major
projects, continued to maintain a strong development momentum, and successfully entered the ranks of the
world's leading enterprises.
1. Focus on operational management to fully promote project construction
In January 2022, the 40 million tons/year refining and chemical integration project (Phase II) of ZPC was
fully put into operation. ZPC added 20 million tons/year of oil refining capacity, 6.6 million tons/year of
aromatics and 1.4 million tons/year of ethylene production capacity. The units of the 3 # ethylene and downstream
chemical projects are also smoothly put into operation, further improving the richness and added value of
chemical products. In addition, projects such as ZPC 3 # ethylene and downstream chemical products project,
high-performance resin project, high-end new materials project, Shaoxing Yongsheng Technology 250000
tons/year polyester film expansion project Phase II, and Shengyuan Chemical Fiber Phase II are also progressing
smoothly.
2. Highlights of ecological management to practice green development
As one of the leading enterprises in China's petrochemical industry, we are well aware of our significant
mission of protecting the ecological environment. The Company has always adhered to the concept of green
development, regarded environmental protection as the foundation of sustainable development of the Company,
and explored low-carbon emission reduction and resource management measures on the basis of environmental
protection compliance, so as to minimize the impact on the ecological environment and continuously practice the
corporate environmental protection responsibility. In 2022, the Company invested a total of RMB 875 million in
environmental protection, achieving a 100% compliance rate for sewage discharge, noise, and environmental
training coverage. In addition, the Company has also continuously promoted the innovation and practice of energy
conservation and consumption reduction through carbon emission management, energy management, cleaner
production, green office and other aspects.
3. Features in public welfare management to promote common prosperity
The Company advocates the concept of public welfare, is enthusiastic about public welfare undertakings, and
is committed to assisting students and teaching, medical assistance, poverty alleviation and caring for special
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groups. It encourages employees to participate in various volunteer service activities, such as blood donation and
condolences, so as to carry forward the volunteer spirit and continuously promote the healthy development of
public welfare undertakings and communities. In 2022, the Company carried out 193 voluntary activities, with a
public welfare donation amount of RMB 19.37 million. This year, in addition to the original public welfare fund
expenditures, we launched a new assistance plan for Xinjiang and Tibet, providing medical resources to the local
area starting in 2022.
4. Concentrate on capital management to fully safeguard shareholders' rights and interests
Adhering to the concept of "respecting investors and rewarding investors", the Company has formulated the
"Investor Relations Management System", and has established an investor hotline and "IRM platform" online
reply to communicate with investors on a daily basis. In addition, the Company regularly holds performance
briefings, and investor reception day activities, receives offline research of reception institutions, participates in
large-scale investment strategy meetings of institutions, etc. Through effective and full communication and
dialogue, the Company carries out exchanges and interactions with investors in multiple channels, builds a good
image of the capital market, and improves the understanding of the capital market of the Company. Furthermore,
last year, the Company issued two stock repurchase plans, with a total repurchase amount of RMB 3.978 billion
for the year, which is the highest among all A-share listed companies. At the same time, the company successfully
completed the 2021 equity distribution and truly returned to the majority of investors.
(3) Operation synergy
1. Controlling shareholder
Rongsheng Holding ranks 180th among Fortune 500, 59th among the top 500 Chinese enterprises and 10th
among China's top 500 private enterprises. Its business involves oil and gas upstream industry and trading, coal,
logistics, equipment manufacturing, process engineering technology, real estate, venture capital and other fields;
The Rongtong Logistics, a subsidiary of Rongsheng Holding, is a national AAAA-rated logistics enterprise with a
mature and stable cooperative operation platform for carriers; Suzhou Shenghui Equipment controlled by
Rongsheng Holding specializes in the design, manufacture and sales of pressure vessels, low-temperature
equipment, spherical tanks and marine equipment; Shanghai Huanqiu Engineering, a joint-stock subsidiary of
Rongsheng Holding, has rich experience in engineering EPC; Many projects invested by Rongsheng Venture
Capital have not only achieved good economic benefits, but also promoted the synergy of the industrial chain.
There are also a number of other investments of Rongsheng Holding in progress. The above projects have a strong
synergy and complementary effect with the business of listed companies.
2. Refining and chemical sector
2.1.ZPC
As the largest single refining and chemical integration project in the world, the 40 million tons/year of
refining and chemical integration project of ZPC has distinct scale advantages. Currently, it has a production
capacity of 11.8 million tons of aromatic hydrocarbons per year and 4.2 million tons of olefins per year. The
project configured more chemical products in the corresponding petrochemical products, which not only gets rid
of the fluctuation dependence of a single product, but also provides abundant space for the development of the
downstream fine chemical industry; ZPC enjoys a high degree of integration and process complexity due to its
one-off design and construction; The refined oil, aromatics and olefins that can be flexibly adjusted according to
market conditions and the highly adjustable equipment all enhanced the ability of risk resistance; There are four
sets of atmospheric and vacuum units for 40 million tons of oil refining, which are suitable for processing crude
oil from multiple sources and reducing the risk of crude oil from a single source. At present, ZPC owns the largest
slurry bed unit in the world with the highest residue conversion rate, and its aromatics and ethylene units have
been rated as advanced units in key areas of Zhejiang Province.
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Located in Zhejiang Free Trade Zone, ZPC enjoys various preferential policies in the free trade zone and has
continuously obtained the export quota of refined oil; Yushan Island, where it is located, is an uninhabited island.
Therefore, it is convenient for development and utilization, and will have little impact on the surrounding society
and broad development space in the future; Being close to the consumer market, ZPC enjoys a prominent position
advantage as a sea-land hub at the Ningbo-Zhoushan port with convenient access to bulk materials and products,
and a significantly low transportation costs.
ZPC actively cooperates with domestic and foreign companies and has carried out research and development
of petrochemical-related technologies, new materials and new products with the Green Petrochemical Innovation
Center established by Tsinghua University, focusing on key research directions such as "carbon dioxide capture
and high value-added utilization, Nylon-66 industrial chain technology and VOCs treatment technology"; The
Company has established Zhejiang Green Petrochemical Technology Innovation Center with Ningbo Science and
Technology Innovation Center of Zhejiang University and Ningbo Institute of Materials of Chinese Academy of
Sciences. Centering on the new green petrochemical process, the Center focuses on energy conservation and zero
emission, petrochemical industry air pollution prevention, solid waste reduction and resource utilization and
efficient separation and clean production. The Center has carried out research and development on key
technologies such as carbon footprint assessment technology for petrochemical products, low energy consumption
and near zero emission green complete set technology for petrochemical processes, waste gas treatment and
purification technology for the petrochemical industry, and reduction and resource utilization of landfill solid
waste. ZPC Zheyou Technology Co., Ltd. was jointly established by ZPC and UOP for catalyst R&D and
production, and 20,000 tons/year of hydrogenation catalyst has been put into operation; ZPC also established
Zhejiang Petroleum Co., Ltd. to explore the sales of refined oil. At present, more than 200 comprehensive energy
supply stations have been put into operation by the Company. The C5/C9 resin produced by ZPC's partner,
Zhejiang Derong Chemical Co., Ltd., has realized the deep processing of C5/C9 components; Zhejiang Petroleum
& Chemical Xinao (Zhoushan) Gas Co., Ltd., a joint-stock subsidiary of ZPC, is contributing to the stability of
natural gas supply.
ZPC takes advantage of its world-class refining and chemical integration projects with large processing scale,
advanced technology, strong adaptability of raw materials, and flexible processing methods, focusing on the
development of basic raw materials, synthetic monomers and intermediates required for downstream chemical
new materials. Projects such as 3 #downstream, high-energy resin projects and high-end new materials are
promoted in an orderly manner, and α olefin, POE and other devices are also under construction, which will lay a
solid foundation for the downstream high-end new material sector of the company.
2.2. Zhongjin Petrochemical
The Zhongjin Petrochemical project selects a new technical route, partly using fuel oil (cheaper than naphtha)
as raw material to produce aromatic hydrocarbon products. While solving the global naphtha supply shortage, the
project can greatly save the raw material procurement cost, introduce the concept of "circular economy", and
innovatively utilize the by-product hydrogen to process fuel oil into naphtha, which can not only process the fuel
oil and naphtha of ZPC, but also can reprocess the products produced by itself to increase the added value.
In 2022, Zhongjin Petrochemical continuously strengthened refined management, strengthened overall
budget management, strictly controlled costs and expenses, and made use of advanced management tools to go
hand in hand in terms of quality improvement, income increase and expenditure reduction, so as to
comprehensively improve management level and operation quality. For example, on the premise of ensuring the
emission of desulfurization environmental protection data up to standard and the high-load operation of
desulfurization system, Zhongjin Petrochemical successfully achieved the transformation from the paid disposal
of desulfurization residue using the "magnesium oxide" method to the delivery of desulfurization gypsum using
the "limestone gypsum" method, creating economic value.
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2.3. Rongsheng New Materials (Zhoushan)
As the expansion area of Zhoushan Green Petrochemical Base, relying on ZPC and Ningbo Zhongjin
Petrochemical, it extends the industrial chain downstream and develops fine chemicals and new chemical
materials. The company focuses on developing downstream products of the existing industrial chains of Zhongjin
Petrochemical and ZPC, as a supplement and extension to Zhongjin and ZPC, to achieve value-added and
efficiency increase in raw materials of Zhongjin and ZPC. At present, the preliminary work is progressing in an
orderly manner.
2.4. Rongsheng New Materials (Taizhou)
The project company has been established, focusing on high-end polyolefins, special rubber and elastomers,
engineering plastics, fine chemicals and special chemicals, and cutting-edge new materials to build a world-class
new chemical material highland and a high-level open cooperation demonstration zone of RCEP. At present, the
preliminary work is progressing in an orderly manner.
3. PTA sector
The Company has its own patented PTA production technology. With obvious competitive advantages, the
Company has completed the technical transformation of old devices, improved their quality and consumption, and
put new devices into operation. During the reporting period, under adverse external conditions, the first-line and
second-line devices of Yisheng New Materials have been successfully put into operation. Based on the existing
stable business, Hainan Yisheng is actively promoting new projects. Among them, 50,000 tons of food-grade
RPET (rPET) were successfully put into operation in December 2021, and another 90,000 tons of production
capacity is in progress. Hainan Yisheng will become the largest food-grade rPET supplier in China once all of
them are put into operation. The 2.5 million tons/year PTA project and the 1.8 million tons/year polyester bottle
chip device are expected to be put into production this year.
4. Polyester sector
With the general policy of "safety and environmental protection, quality improvement, cost reduction and
benefits increase", the Company focuses on strengthening pandemic prevention and control, implementing hidden
danger treatment, boosting process optimization and promoting lean production management. The Company's new
projects are also advancing. Yongsheng Technology is continuously expanding the production capacity of high-
end film and is going to put 150,000 tons of production lines into operation this year. The 500,000 tons of
differentiated fiber project of Shengyuan Phase II, which mainly produces flame-retardant, functional and dye-free
fiber products, is also in progress.
Unit: RMB
Proportion in the Average price
Significant changes in Average price in the
Main raw materials Procurement mode total purchase in the second
settlement method first half of the year
amount half of the year
Crude oil Quotation purchase 64.84% No significant change 4,955.36 4,772.63
Naphth Quotation purchase 2.19% No significant change 5,845.85 5,355.87
Fuel oil Quotation purchase 3.65% No significant change 4,545.46 3,686.83
PX Quotation purchase 6.91% No significant change 7,241.57 7,568.96
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Production technology of main products
Developme
Core
nt stage of Proprietary
Main products technical Product R&D advantages
production technology
personnel
technique
Using the patented technology of TS &W company of the United States, the raw materials will be cracked in the high-
Several
Stage of Introduction temperature cracking furnace tube by steam cracking to generate a low molecular weight hydrocarbon mixture, that is,
Ethylene, core
technology and pyrolysis gas. The pyrolysis gas containing ethylene, propylene and other products will be quenched, compressed, alkali
Propylene technical
application innovation washed, dried, hydrogenated, and undergo cold-thermal separation and methanization to produce polymer grade ethylene and
personnel
polymer grade propylene and other products.
Several
Stage of Introduction Univation company's Unipol process technology (low-pressure gas-phase production process) can produce high, medium and
core
FDPE technology and linear low-density polyethylene products. Using ethylene as the main raw material and butene-1 or Hexene-1 as a comonomer,
technical
application innovation linear low density and some medium and high-density polyethylene granular resins can be produced.
personnel
Several The HDPE unit adopts the INNOVENES slurry loop polymerization process of INEOS Company, and produces bimodal and
Stage of Introduction
core unimodal polyethylene products through two loop reactors in series. The reaction should be carried out at medium temperature
HDPE technology and
technical and pressure. With mild reaction conditions, the proprietary concentration equipment can improve the slurry concentration and
application innovation
personnel reduce the load of the solvent recovery unit.
Several
Stage of Introduction The LUPOTECHT tubular reactor technology from LyondellBasell company can switch to produce LDPE homopolymer resin
core
EVA/LDPE technology and particles of different brands and EVA copolymer resin particles with VA content less than or equal to 28% in one production
technical
application innovation line.
personnel
Several LyondellBasell company has developed the Spherizone process based on Spheripol process technology. The Spherizone
Stage of Introduction
core process based on multizone circulating reactor (MZCR) technology is adopted to divide a reactor into two reaction areas to
PE technology and
technical control the reaction conditions independently. The gradually growing polymer particles will circulate quickly and repeatedly in
application innovation
personnel the two reaction areas to realize the "onion-shaped" uniform mixing in the polymer particles.
1) Diphenyl carbonate unit: DPC is produced by using the patented technology of ester exchange between dimethyl carbonate
Several and phenol of lummus company in the United States. DPC products are of high quality and suitable for the production of high-
Stage of Introduction
core quality polycarbonate; 2) Polymerization unit: the patented technology of non-phosgene transesterification and melt
PC technology and
technical polycondensation of EPC company in German is adopted. Main features: compared with phosgenation, the technology has
application innovation
personnel lower emission of environmental pollutants, higher product yield, lower monomer residue and larger single line production
capacity.
Several
Stage of Introduction
core Bisphenol A (BPA) ion exchange resin process technology uses phenol and acetone as raw materials and catalyzes the
BPA technology and
technical condensation reaction in an acidic medium to produce BPA.
application innovation
personnel
Several The adsorption and separation unit adopts the latest LD-Parex process of UOP and ADS-50 adsorbent, that is, using toluene as
PX Stage of Introduction
core desorbent, using simulated moving bed (SMB) technology and supporting adsorption and separation process to produce PX
technology and
technical products. The xylene fractionation unit adopts the fractionation process matched with LD-Parex to cut qualified raw materials
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application personnel innovation meeting the feed requirements for adsorptive separation and other process units through side line extraction and tower top
fractionation, respectively; The Isomerization unit adopts Isomar process technology and I-500 ethylbenzene dealkylation
catalyst.
The proprietary technology of Zhejiang Zhiying Petrochemical Technology Co., Ltd. is used to produce ABS resin with
Several acrylonitrile (AN), butadiene (BD) and styrene (SM) as the main raw materials by emulsion grafting-bulk SAN blending
Stage of Introduction
core method. The emulsion grafting-bulk SAN blending process is mature, because of the direct use of monomer polymerization to
ABS technology and
technical produce ABS, the product quality is stable, the variety is wide, the production is flexible, and the product switching is easy. The
application innovation
personnel emulsion grafting-bulk SAN blending method has the advantages of less investment and low production cost and is easy to
realize mass production.
It adopts the anion catalytic synthesis process technology, bimetallic cyanide (DMC) catalytic synthesis process technology,
Several
Stage of Introduction and POP process technology of Innovare Engineering Holding Limited. The first type of product is a polyoxypropylene polyol
core
Polyether polyol technology and product, which is obtained by copolymerization with propylene oxide and ethylene oxide using glycerol or organic amines as
technical
application innovation initiator; The other type is polymer polyols, which are obtained by grafting polymerization of acrylonitrile, styrene and other
personnel
polyols.
Solution
polymerized The process technology of SSBR and NDBR is the patented technology of ICB company in Germany. The production method
Several
styrene-butadiene Stage of Introduction of solution polymerized styrene-butadiene rubber (SSBR) is a solution polymerization method, where butadiene and styrene
core
rubber (SSBR) technology and are polymerized in a mixed solvent of normal hexane and cyclohexane in the presence of a polymerization catalyst NBL; The
technical
and rare earth application innovation rare earth cis-1,4-polybutadiene rubber (NDBR) is produced by solution polymerization. Butadiene is polymerized in an n-
personnel
cis-polybutadiene hexane solution in the presence of NdV, ACT and AOC catalysts.
rubber (NDBR)
Several
Leading Introduction The core technology of this product has its own independent intellectual property rights. The Company has participated in the
core
PTA position in and formulation of the national standards for the energy consumption limit per unit product of this product. The energy
technical
China innovation consumption of the product performs better than the national advanced level.
personnel
Maximum output, maximum conversion rate and minimum energy consumption. Increased production and efficiency while
controlling energy consumption by tapping the potential of equipment; Improved energy utilization and reduced production
Several costs; Eliminated the filter blockage and labor waste, saved the bagging cost, and brought the Company considerable economic
Introduction
Large-scale core benefits; Using the patented technology of the Company, basic magnesium sulfate whisker, four-needle zinc oxide whisker,
Polyester and
application technical magnesium salt whisker, β Type silicon nitride whisker, melamine cyanurate, micro-encapsulated Red Phosphorus Retardant,
innovation
personnel ethylene glycol, etc. are made into flame-retardant and anti-droplet whisker ethylene glycol solution through certain
manufacturing process; The solution is added to the slurry preparation tank to produce flame-retardant and anti-droplet
polyester through esterification, pre-polycondensation and final polymerization.
Several
Multi-functional Leading Introduction The core technology of this product adopts the current international advanced high-temperature crystallization cutting and UOP
core
polyester bottle position in and solid-phase polycondensation process, with a short process, low energy consumption, and domestic leading performance of
technical
grade chip China innovation comprehensive energy consumption per unit product.
personnel
Several Introduction Through the independent design and installation of multiple addition points, online adding equipment with various additional
Large-scale
Fiber core and materials, dynamic and static mixing equipment, oil nozzle, winding machine, etc. on the melt direct spinning line, the existing
application
technical innovation equipment was optimized to obtain benefits from the differentiated and high-end products of polyester melt direct spinning and
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personnel realize transformation and upgrading. The contradiction between large capacity polyester plants and the production of small
batch and multi-agent functional differentiated fibers has been solved. The main products include flame-retardant, antistatic,
colored and full extinction functional modified fibers.
Several
Introduction The technology is independently developed and completed by the Company. It is used to process DTY and FDY in uniform
Mass- core
Texturing and military green, black and other colors. No dyeing is required after weaving, so the products hardly lose colors in daily use and
production technical
innovation are mostly used to weave fabrics for special purposes.
personnel
Several
Introduction
Multifunctional Mass core By directly sending the polymerized melt to a film drawing production line for film making, a series of processes of chip
and
polyester film production technical manufacturing, transportation, drying and melting are skipped, and a large amount of cost can be saved.
innovation
personnel
Several
Introduction
Mass core Anti-hydrolysis, anti-ultraviolet and anti-oxidation additives are used, and proprietary equipment and targeted processes are
Backplate film and
production technical used to manufacture thin films with weatherability characteristics, which can be applied to solar photovoltaic backplanes.
innovation
personnel
Several
Introduction
Film grade Mass core By adding composite conductive substances to polyester, the problem of difficult adhesion due to high casting speed on high-
and
section production technical speed production lines has been solved, making it applicable to high-speed film drawing production lines.
innovation
personnel
Several
Introduction By solving the problem of dispersion of micron-sized particles, the silica particles are added into a reaction kettle in the
High silicon Mass core
and polymerization process, so that the master batch with high silica content is prepared, and the master batch can be widely
masterbatch production technical
innovation applied to the production of polyester films.
personnel
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Production capacity of main products
Main products Design capacity Capacity utilization
PX 1060 100%
Pure benzene 310 100%
M-xylene 20 100%
PTA 2200 100%
PIA 30 100%
MEG 240 100%
POY 46 100%
FDY 54 100%
DTY 42 100%
Section 25 100%
Flakes 270 100%
Ethylene 420 100%
EO 45 100%
Propylene 330 100%
Styrene 240 100%
PP 180 100%
LLDPE 90 100%
Phenol 80 100%
Butadiene 60 100%
HDPE 60 100%
Acrylonitrile 52 100%
PC 52 100%
Acetone 50 100%
Bisphenol A 48 100%
Ethylene oxide 45 100%
Thin film 43 100%
ABS 40 100%
Methanol 40 100%
LDPE 40 100%
EVA 30 100%
PO 27 100%
DMC 20 100%
MMA 20 100%
Types of products in major chemical parks
Major chemical parks Types of products
Zhoushan Green Petrochemical Base Products in the petrochemical industrial chain
Ningbo Petrochemical Economic＆Technological Development Zone Products in the petrochemical industrial chain
DaGuShan Chemical Industrial Park at Jinpu New Area, Dalian Products in the petrochemical industrial chain
EIA approvals being applied for or newly obtained during the reporting period
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Project EIA approval
Chemical waste liquid incineration device for the 40 million tons/year integrated refining-
ZHDJS [2022] No. 3
chemical integration project
Newly added 1.4 million tons/year ethylene and downstream chemical plant (product structure
ZHDJS [2022] No. 11
optimization of Phase II project) project
Heavy metal ash recovery project by oil residue gasification & filter cake incineration ZHDJS [2022] No. 2
DMC device sodium methoxide preparation unit for the 40 million tons/year integrated refining-
ZHDJS [2022] No. 14
chemical integration project
Clean utilization project of refining and chemical by-products ZHDJS [2022] No. 15
110kV Substation Project of Rongsheng New Materials (Zhoushan) Co., Ltd. ZHDJS [2022] No. 9
DHPZZ [2022] No. 000018
Expansion project of the multifunctional polyester chip with an annual output of 500,000 tons
(April 1, 2022)
Relevant approvals, permits, qualifications, and validity terms
NO. Unit approved Qualification / license Approval department Validity term
Zhejiang Provincial
National Industrial Product
1 ZPC Administration for Market December 30, 2025
Manufacture Licensing Certificate
Regulation
Registration Certificate for Zhejiang Provincial Registration
2 ZPC June 14, 2023
Hazardous Chemicals Center for Chemicals
Zhejiang Provincial Emergency
3 ZPC Safe Production License December 27, 2023
Management Department
Zhoushan Ecology and
4 ZPC Pollutant Discharge Permit July 18, 2024
Environment Bureau
Zhoushan Shipping and Port
5 ZPC License for Port Operation October 20, 2023
Administration
Yushan Zhoushan Ecology and
6 Pollutant Discharge Permit April 2, 2024
Petrochemical Environment Bureau
Zhejiang Provincial
Zhongjin National Industrial Product
7 Administration for Market February 11, 2023
Petrochemical Manufacture Licensing Certificate
Regulation
Zhongjin Zhejiang Provincial Emergency
8 Safe Production License June 4, 2023
Petrochemical Management Department
Registration Center for
Zhongjin Registration Certificate for
9 Chemicals of Emergency October 13, 2025
Petrochemical Hazardous Chemicals
Management Department
Zhongjin Zhenhai Branch of Ningbo
10 Pollutant Discharge Permit December 31, 2025
Petrochemical Ecology and Environment Bureau
Niluoshan New Zhenhai Branch of Ningbo
11 Pollutant Discharge Permit February 9, 2027
Energy Ecology and Environment Bureau
Rongsheng Safety Production Standardization Hangzhou Municipal Emergency
12 April 2023
Petrochemical Certificate Management Department
Rongsheng Hangzhou Municipal Emergency
13 Pollutant Discharge Permit November 5, 2026
Petrochemical Management Department
14 Shengyuan Chemical Pollutant Discharge Permit Hangzhou Municipal Emergency November 5, 2026
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Fiber Management Department
Zhejiang Provincial
Yongsheng National Industrial Product
15 Administration for Market August 11, 2026
Technology Manufacture Licensing Certificate
Regulation
Yongsheng Shaoxing Ecology and
16 Pollutant Discharge Permit August 27, 2023
Technology Environment Bureau
Liaoning Provincial Emergency
17 Yisheng Dahua Safe Production License March 28, 2025
Management Department
License for Port Operation of the Dalian Traffic and Transportation
18 Yisheng Dahua July 29, 2022
People's Republic of China Bureau
Registration Certificate for Liaoning Provincial Work Safety
19 Yisheng Dahua November 16, 2023
Hazardous Chemicals Service Center
Dalian Ecology and Environment
20 Yisheng Dahua Pollutant Discharge Permit October 13, 2023
Bureau
Engaged in oil processing, oil trade industry
The Company mainly import crude oil as raw materials from stable and reliable suppliers abroad. At present,
the Company's import volume of crude oil is about 40 million tons/year, and its products are mainly sold in the
domestic market. Thanks to the stable national tax policy, the Company's production and sales are also stable and
sustainable. Each production base of the Company is adjacent to high-quality ports, connected with canals, and
equipped with complete wharf facilities. The total storage capacity of Mamu crude oil depot and Yushan Island
crude oil depot has reached 4.6 million mwhich is the largest storage capacity of domestic refining and chemical
facilities. As the most concentrated resource allocation base for oil and gas enterprises in China, Zhejiang free
Trade Zone has an oil depot capacity of more than 30 million m including Huangzeshan Island, Cezi Island and
Waidiao Island. Most of the oil pipeline networks are interconnected, making local transportation available.
III Analysis of Core Competitiveness
As one of the leading enterprises in the petrochemical industry with leading comprehensive strength in China,
the Company's core competitiveness is mainly reflected in the following aspects:
1. Complete industrial synergistic advantage
After years of development and improvement, the Company has seized the opportunity of industrial
adjustment, achieved rapid growth, and formed the development strategy of "from a drop of oil to everything in
the world". Both the extension of the industrial chain and the coordinating upstream and downstream sectors are
helpful for the Company to effectively reduce business costs. While ensuring the supply of raw materials, they can
also ensure the reliability and stability of product quality, and also improve the Company's sustainable
profitability and risk resistance.
The interconnection between Zhoushan Green Petrochemical Base and Ningbo Petrochemical Base can
realize the coordinated development of Ningbo and Zhoushan bases. Pipeline transportation has greatly reduced
the risk and cost of water and land transportation. A large number of light hydrocarbon raw materials produced by
Ningbo Petrochemical Base are transported to Zhoushan Green Petrochemical Base through pipelines, which can
be used as high-quality ethylene raw materials. The surplus oil of Zhoushan Green Petrochemical Base can also be
transported to Ningbo Petrochemical Base as high-quality raw material for the production of aromatics.
The construction of the ZPC Project has supporting facilities that can meet the supply and demand of crude
oil in the two phases of the project. The total storage capacity of Mamu crude oil depot and Yushan Island crude
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oil depot has reached 4.6 million m which is the largest storage capacity among domestic refining and chemical
facilities. As the most concentrated resource allocation base for oil and gas enterprises in China, the Zhejiang Free
Trade Zone has an oil depot capacity of more than 30 million m including Huangzeshan Island, Cezi Island, and
Waidiao Island. Most of the oil pipeline networks are interconnected, making local transportation available.
2. Remarkable location advantage
The Company's production bases are located along the eastern coastline of China, including the "Circum-
Bohai Sea Economic Zone" in Dalian City, Liaoning Province; the "Yangtze River Delta Economic Circle" in
Ningbo City, Zhejiang Province; and the "Maritime Silk Road" in Haikou City, Hainan Province. Each production
base of the Company is adjacent to high-quality ports, connected with canals and equipped with complete wharf
facilities. The main raw materials and other auxiliary raw materials required for production can be unloaded and
stored at the chemical material wharf built or rented by the Company, which has provided convenient
transportation of bulk raw materials and inventory adjustment. The ZPC Project is located in the major
consumption area of oil and chemical products, consuming 40% of domestic petrochemical and chemical products,
and the area's production capacity of plastics and chemical fiber accounts for 90% of the country. Refined oil has
many sales channels and enjoys strong policy support and obvious competitive advantages. ZPC took the lead in
other private enterprises and cooperated with Zhejiang Provincial Energy Group Company to establish Zhejiang
Petroleum, taking the lead in the layout of the refined oil retail business. ZPC plans to deploy 700 gas stations in
Zhejiang Province. At present, more than 200 gas stations have been put into operation. The Ministry of
Commerce officially approved granting ZPC the export qualification of non-state-owned trade refined oil. As the
first private refining and petrochemical enterprise to obtain export permission, ZPC took the lead in opening sales
channels in Southeast Asia. In the face of the excess supply of domestic refined oil, this export permission given
to ZPC has become more valuable.
3. Excellent strategic layout advantages
The management of the Company has a keen sense of investment, accurate timing for project operation and
excellent investment and financing capacity. The Company started its business in the polyester chemical fiber
sector and experienced many years of development. With the full-scale operation of the 40 million tons/year
refining and chemical integration project of its subsidiary in early 2022, ZPC has become the largest single
refinery in the world. With the lowest product oil yield and the largest PX production capacity, the project has
become the largest PX production base in the world. The project continues to maximize the production and
recover light components as raw materials for the ethylene cracking unit, and has made a one-time differentiated
layout of downstream supporting chemical units. Due to the mutual provision of materials and main devices as
well as the interconnected utilities, the maintenance of a single device does not affect the production load of the
whole unit, and thus can achieve the goal of maintenance at the staggered time and long-term continuous
operation of the plant. The advanced heavy oil processing technology adopted by the Company has stronger
adaptability to raw materials and a higher conversion rate of reaction, taking the lead in terms of process, scale,
and supporting facilities.
Relying on the 40 million tons/year refining and chemical integration project of ZPC, the Company has
accelerated the layout of downstream new chemical materials, aimed at the field of new energy and high-end
materials, and has deployed a number of new energy and new material products such as EVA, DMC, PC and ABS,
continuously enriching its product chain. With the steady progress of new projects, the Company's production
capacity of new energy materials, renewable plastics, special synthetic materials, and high-end synthetic materials
will be expanded in an orderly manner, and the transformation of new materials will be gradually accelerated.
4. Strong research and development and innovation advantages
We uphold a technological research and development pattern driven by both independent innovation and
cooperation. We have established many world-class research and development platforms, including a high-tech
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research and development center, a workstation for academicians and experts, an enterprise technology center,
and a post-doctoral science and research workstation. Moreover, we engage in active technology exchanges and
discussions and promote industry-university-research collaboration to acquire resources from universities, the
community, and the Company. With all sectors of society, we jointly promote our research capabilities and
technological advancement and together create an innovation ecosystem that is open, healthy, and cooperative,
where everyone can benefit. In recent years, the Company has continuously promoted scientific research
cooperation with domestic and foreign countries and increased its research and development investment year by
year to maintain a leading level in the industry.
The Company's main manufacturing subsidiaries are all national high-tech enterprises with strong research
and development strength and rich process operation experience accumulated during long-term production
management. The Company has selected a new technical route for Zhongjin's petrochemical project, using fuel oil
(cheaper than naphtha) to produce some aromatic products. In doing so, the Company has not only eased the
shortage of global naphtha supply but also greatly saved raw material procurement costs by introducing the
concept of "circular economy". Hydrogen, the by-product, was used to process fuel oil into naphtha, laying the
foundation for the promotion of the ZPC Project. By building projects with PTA patented technology, the
Company has effectively reduced the investment cost and operation cost per unit capacity, enhanced the
competitiveness of products, and accumulated rich experience in the domestic fabrication of complete sets of
technology and equipment. The Company summarized the successful application of large-scale melt direct
spinning polyester and spinning technology in the early projects for further development and improvement in the
later projects.
5. Rich human resource advantages
The Company's core management team has rich professional experience and keen insight. Made up of
efficient doers, the team has a deep understanding of the petrochemical and chemical fiber industries and rich
experience in development strategy, new business planning, resource integration, and talent training. Focusing on
the construction of corporate culture, the Company has formed a good working atmosphere and strong corporate
cohesion. The Company has also trained a group of stable core management, research and development, and
technical talents through internal training and introduction. The Company attaches importance to the cultivation of
on-the-job staff. Based on reality and comprehensive planning, the Company is constantly broadening the staff
selection platform and formulating an effective incentive mechanism. To maintain the practical and effective work
of the staff, the Company has improved the benefits of employees, optimized the professional title assessment
system, and clarified the promotion standards and incentives. In addition, the Company combined the employee
examination with performance evaluation and replaced some evaluations with competition to dynamically
evaluate employees' comprehensive quality and form a healthy competition of competing through learning and
competing for first place. Following the principle of "different measures for different talents and making good use
of the strengths of talents", every employee will have the opportunity to exercise their abilities.
6. Efficient operation and management advantages
The Company adheres to system construction, integrates digitization, intelligence, standardization, process,
and regulation into operations; actively strengthens IT construction; comprehensively integrates business links
such as sourcing, production, inventory, and sales; and constantly improves the rapid response ability. The
Company has established a complete set of effective management systems in combination with actual situations,
defined post responsibilities and work flow, and effectively reduced the operation costs through fine management.
Through years of efforts, the Company's information construction, performance appraisal, credit management and
other systems are at the leading level in the industry. At the same time, the Company has further improved its
cohesiveness and influence through brand and cultural construction and won honors. The company has won the
"Top 10 Most Valuable Brands in Global Chemical Industry in 2022","The 27th among Top 50 Global Chemical
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Enterprises in 2022","Billion Dollar Club of Global Chemical Companies among Top 100 Global Chemical
Enterprises in the World", "Top 100 Comprehensive Health Index of China Listed Companies in 2021", "Top 10
List of Sales Revenue of Petroleum and Chemical Enterprises in 2022", "Advanced Standardization List in 2021",
"Top 100 Value Listed Companies on Main Board", "Outstanding Management Team of Listed Companies in
China", "Best Practice Award of Directors of Listed Companies in 2022 ", "2022 Top 100 Enterprises in Zhejiang
Province, No.1 in Top 100 Manufacturing Enterprises in Zhejiang Province", " 2022 Top 100 Private Enterprises
in Zhejiang Province" and other honors.
IV. Analysis of Main Business
1. Overview
Based on the development strategy and business plan formulated at the beginning of the year, the Company
adheres to promoting project construction and production business simultaneously, and pays attention to the joint
improvement of industrial expansion and internal control. Driven by the sound business climate in China, the
Company seized opportunities and overcame difficulties through the joint efforts of all cadres and employees,
increasing all indicators to a new level. In 2022, the Company achieved operating revenue of RMB 289.095
billion, a year-on-year increase of 57.91%; The Company's total assets in 2022 were RMB 362.587 billion, a year-
on-year increase of 7.20%. On the whole, despite the uncertain economic situation, the Company has not only
effectively guaranteed normal and orderly business operation, but also fully completed the construction of major
projects, continued to maintain a strong development momentum, and successfully entered the ranks of the
world's leading enterprises.
2. Revenue and cost
(1) Composition of operating revenue
Unit: RMB
2022 2021 Year-on-year
Proportion in Proportion in increase
Amount Amount (decrease)
operating income operating income
Total operating
289,094,841,612.76 100% 183,074,930,286.51 100% 57.91%
income
By industry
Petrochemical
268,236,787,548.52 92.79% 147,552,390,897.55 80.60% 81.79%
Industry
Polyester chemical
14,641,039,125.46 5.06% 14,303,652,901.29 7.81% 2.36%
fiber industry
Trade and others 6,217,014,938.78 2.15% 21,218,886,487.67 11.59% -70.70%
By product
Oil refining products 103,841,990,910.56 35.92% 52,587,161,375.41 28.72% 97.47%
Chemical products 113,898,786,080.29 39.40% 72,023,079,213.02 39.34% 58.14%
PTA 50,496,010,557.67 17.47% 22,942,150,309.12 12.53% 120.10%
Polyester chemical
14,641,039,125.46 5.06% 14,303,652,901.29 7.81% 2.36%
fiber film
Trade and others 6,217,014,938.78 2.15% 21,218,886,487.67 11.59% -70.70%
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By region
China 239,055,001,192.12 82.69% 151,014,002,117.52 82.49% 58.30%
Overseas 50,039,840,420.64 17.31% 32,060,928,168.99 17.51% 56.08%
(2) Industry, product, region and sales mode accounting for more than 10% of the Company's operating
revenue or operating profit
The Company is required to comply with the disclosure requirements for the chemical industry as specified in the
Self-Regulatory Guidelines No. 3 for Listed Companies of Shenzhen Stock Exchange - Industry Information
Disclosure.
Unit: RMB
Year-on-year Year-on-year
Year-on-year
Gross increase increase
Operating increase
Operating cost profit (decrease) in (decrease) in
revenue (decrease) in
margin operating gross profit
operating cost
revenue margin
By industry
Petrochemical
268,236,787,548.52 238,009,369,791.46 11.27% 81.79% 136.53% -20.53%
Industry
Polyester
chemical fiber 14,641,039,125.46 14,168,474,148.53 3.23% 2.36% 7.60% -4.72%
industry
Trade and
6,217,014,938.78 5,663,310,641.28 8.91% -70.70% -73.40% 9.26%
others
By product
Oil refining
103,841,990,910.56 84,981,949,000.87 18.16% 97.47% 159.26% -19.51%
products
Chemical
113,898,786,080.29 102,078,088,582.19 10.38% 58.14% 125.90% -26.88%
products
PTA 50,496,010,557.67 50,949,332,208.40 -0.90% 120.10% 124.84% -2.13%
Polyester
chemical fiber 14,641,039,125.46 14,168,474,148.53 3.23% 2.36% 7.60% -4.72%
film
Trade and
6,217,014,938.78 5,663,310,641.28 8.91% -70.70% -73.40% 9.26%
others
By region
China 239,055,001,192.12 208,576,277,718.40 12.75% 58.30% 101.21% -18.61%
Overseas 50,039,840,420.64 49,264,876,862.88 1.55% 56.08% 56.77% -0.43%
(3) Whether revenue from physical sales is higher than service revenue
Year-on-year
Industry Item Unit 2022 2021 increase (decrease)
Sales quantity 10,000 tons 4,112.26 2,860.36 43.27%
Petrochemical
Production quantity 10,000 tons 4,823.10 3,477.02 38.71%
Industry
Inventory 10,000 tons 153.58 106.73 43.90%
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Sales quantity 10,000 tons 198.56 215.57 -7.89%
Polyester chemical
Production quantity 10,000 tons 336.40 366.54 -8.22%
fiber industry
Inventory 10,000 tons 11.95 10.81 10.46%
Description of reasons for relevant data increasing/decreasing by more than 30% year-on-year
During the reporting period, the output, sales volume and inventory of petrochemical industry products
increased significantly as compared with the same period of last year, which was mainly due to the full operation
of Phase II of the subsidiary ZPC.
(4) Performance of major sales and procurement contracts signed by the company as of the current
reporting period
□ Applicable Not applicable
(4) Composition of operating costs
Unit: RMB
2022 2021
Year-on-year
Industry Item Proportion Proportion in increase
Amount in operating Amount operating (decrease)
income income
Petrochemical
Raw material 219,310,111,251.40 92.14% 92,247,604,403.36 91.67% 0.47%
Industry
Petrochemical
Labor wage 1,726,845,598.87 0.73% 602,707,237.63 0.60% 0.13%
Industry
Petrochemical
Depreciation 8,207,898,392.30 3.45% 3,919,322,472.13 3.89% -0.45%
Industry
Petrochemical
Energy 7,730,464,344.88 3.25% 3,177,807,411.12 3.16% 0.09%
Industry
Petrochemical
Other 1,034,050,204.02 0.43% 678,802,675.26 0.67% -0.24%
Industry
Total 238,009,369,791.46 100.00% 100,626,244,199.50 100.00% 0.00%
Polyester
chemical fiber Raw material 12,756,545,578.83 90.03% 11,585,305,088.53 87.98% 2.05%
industry
Polyester
chemical fiber Labor wage 270,512,439.97 1.91% 234,973,116.82 1.78% 0.12%
industry
Polyester
chemical fiber Depreciation 199,686,441.04 1.41% 222,806,738.04 1.69% -0.28%
industry
Polyester
chemical fiber Energy 719,003,959.71 5.07% 865,117,566.48 6.57% -1.50%
industry
Polyester
chemical fiber Other 222,725,728.97 1.57% 259,267,236.97 1.97% -0.40%
industry
Total 14,168,474,148.53 100.00% 13,167,469,746.84 100.00% 0.00%
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Unit: RMB
2022 2021 Year-on-
Proportion in Proportion in year
Industry Item
Amount operating Amount operating increase
income income (decrease)
Refinery Raw
77,785,713,249.72 91.53% 29,807,341,595.29 90.94% 0.60%
products material
Refinery
Labor wage 754,650,595.88 0.89% 238,952,822.71 0.73% 0.16%
products
Refinery
Depreciation 3,310,628,382.72 3.90% 1,410,199,350.79 4.30% -0.41%
products
Refinery
Energy 2,934,219,424.57 3.45% 1,152,553,303.17 3.52% -0.06%
products
Refinery
Other 196,737,347.99 0.23% 169,335,570.24 0.52% -0.29%
products
Total 84,981,949,000.88 100.00% 32,778,382,642.21 100.00% 0.00%
Chemical Raw
93,512,854,749.88 91.61% 41,014,690,143.92 90.77% 0.84%
products material
Chemical
Labor wage 908,477,399.74 0.89% 329,316,743.71 0.73% 0.16%
products
Chemical
Depreciation 3,980,431,150.22 3.90% 1,941,095,293.63 4.30% -0.40%
products
Chemical
Energy 3,457,548,082.96 3.39% 1,643,880,872.55 3.64% -0.25%
products
Chemical
Other 218,777,199.39 0.21% 258,616,646.10 0.57% -0.36%
products
Total 102,078,088,582.19 100.00% 45,187,599,699.90 100.00% 0.00%
Raw
PTA 48,011,543,251.81 94.23% 21,425,572,664.16 94.55% -0.32%
material
PTA Labor wage 63,717,603.24 0.13% 34,437,671.21 0.15% -0.03%
PTA Depreciation 916,838,859.36 1.80% 568,027,827.70 2.51% -0.71%
PTA Energy 1,338,696,837.36 2.63% 381,373,235.40 1.68% 0.94%
PTA Other 618,535,656.64 1.21% 250,850,458.92 1.11% 0.11%
Total 50,949,332,208.40 100.00% 22,660,261,857.39 100.00% 0.00%
Raw
PET Film 12,756,545,578.83 90.03% 11,585,305,088.53 87.98% 2.05%
material
PET Film Labor wage 270,512,439.97 1.91% 234,973,116.82 1.78% 0.12%
PET Film Depreciation 199,686,441.04 1.41% 222,806,738.04 1.69% -0.28%
PET Film Energy 719,003,959.71 5.07% 865,117,566.48 6.57% -1.50%
PET Film Other 222,725,728.97 1.57% 259,267,236.97 1.97% -0.40%
Total 14,168,474,148.53 100.00% 13,167,469,746.84 100.00% 0.00%
(6) Whether the scope of consolidation has changed during the reporting period
1. Increase in consolidation scope
Company name Acquisition method Date of equity acquisition
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Ningbo Rongxincheng Trading Co., Ltd. New establishment October 9, 2022
Yisheng New Materials Trading Co., Ltd. New establishment October 22, 2021
Zhoushan ZPC Sales Co., Ltd. New establishment July 15, 2022
ZPC (Zhejiang Free Trade Zone) Green
New establishment January 6, 2022
Petrochemical Research Institute Co., Ltd.
Rongsheng New Materials (Zhoushan) Co., Ltd. New establishment January 28, 2022
Rongsheng New Materials (Taizhou) Co., Ltd. New establishment May 7, 2022
2. Decrease in consolidation scope
Company name Acquisition method Date of disposal
Zhejiang FreeTrade Zone Rongxin Trade Co., Ltd. Cancellation April 8, 2022
Rongxiang (Shanghai) Chemical Co., Ltd. Cancellation February 8, 2022
[Note] Yisheng New Materials Trading Co., Ltd. was established on October 22, 2021, and the account was set up
for auditing in 2022.
(7) Significant changes or adjustments to the Company's business, products or services during the
reporting period
□ Applicable Not applicable
（8）Major sales customers and major suppliers
Major sales customers
Total sales amount of the top five customers (RMB) 49,709,169,270.38
Proportion of total sales amount of the top five customers in 17.19%
total annual sales
Proportion of related party sales in total annual sales among
5.64%
the top five customers
Top 5 customers of the Company
Proportion in total annual
NO. Customer Sales amount (RMB)
sales
1 Customer 1 16,302,759,633.27 5.64%
2 Customer 2 10,491,463,720.47 3.63%
3 Customer 3 8,172,119,203.20 2.83%
4 Customer 4 7,576,694,616.67 2.62%
5 Customer 5 7,166,132,096.78 2.48%
Total -- 49,709,169,270.38 17.19%
Major suppliers
Total purchase amount of the top five suppliers (RMB) 125,559,381,162.81
Proportion of total purchase amount of the top five suppliers
42.80%
in total annual purchase amount
Proportion of related party purchase amount in total annual
0.00%
purchase amount of the top five suppliers
Top 5 suppliers of the Company
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Proportion in total annual
NO. Suppliers Purchase amount (RMB)
purchase amount
1 Supplier 1 54,615,731,386.47 18.62%
2 Supplier 2 31,567,495,254.91 10.76%
3 Supplier 3 14,527,808,482.31 4.95%
4 Supplier 4 12,448,971,400.00 4.24%
5 Supplier 5 12,399,374,639.11 4.23%
Total -- 125,559,381,162.81 42.80%
3. Expenses
Unit: RMB
Year-on-year
2022 2021 increase Description of major changes
(decrease)
Marketing expenses 175,450,628.16 154,972,404.33 13.21%
Administrative
815,233,609.10 682,723,375.14 19.41%
expenses
Mainly due to the increase in
exchange losses of the
Financial expenses 6,030,509,548.75 2,898,351,176.59 108.07%
Company and its subsidiary
ZPC in the current period.
R&D expenses 4,367,112,486.97 3,915,264,380.48 11.54%
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4. R&D investment
Name of main Project Expected impact on the company's future
Project purpose Objectives to be achieved
R&D project progress development
(1) Improve the rigidity and strength of the pipeline It is of great significance to form a
Analysis and support system and the frame structure where the systematic and standardized technical
treatment of To prevent the impact of the operating medium pipeline is located, and reduce resonance and vibration scheme and management method for the
Concluded transmission.
pipeline vibration on the pipeline analysis, prevention and treatment of
in the refinery unit (2) By analyzing the inducement of vibration, adopt vibration causes and problems for the safe
corresponding vibration reduction facilities. and long-term operation of the device.
Energy saving and emission reduction: about 5t/h of
To ensure the effective recovery of waste heat exhaust steam from deaerator is recovered every hour,
from the deaerator and boiler blowdown in and about 6t/h of hot water is discharged continuously.
Phase I of the power center as well as the Calculated by standard coal, about 20,000 tons of
efficient and energy-saving operation of the standard coal can be saved every year. The process has
power center, waste heat recovery device is obvious effects of energy saving and emission
Research on Waste
added to recover and utilize waste heat of reduction, and fully embodies the concept of clean
Heat Utilization It can further improve the comprehensive
exhaust steam of boiler timing & continuous Concluded production.
Technology of technical level of the device.
blowdown and deaerator and surplus hot water
Power Center Stable and long-term operation of the system: the
of aromatic hydrocarbon, so as to realize 100%
recovery of exhaust steam of deaerator and system can realize DCS automatic control, with stable
more than 90% heat recovery of boiler timing & and reliable operation. After being put into operation, it
continuous discharge and aromatic hot water, can effectively improve the phenomenon of steam
and reduce energy loss. exhaust and steam emission of the device and greatly
improve the image of the device area.
Improve the economic benefit of ethylene
Research on
cracking unit; The calibration method and
Calibration and (1) A cracking gas sampling device for ethylene
To guide the cracking furnace to operate under the optimization method of the ethylene
Optimized cracking furnace
the best operating conditions, improve the yield cracking furnace can be further applied to
Processing Plan of Concluded
of target products, and then improve the (2) Calibration and optimization method of ethylene the ZPC Phase II 2# ethylene and 3#
1.4 million
economic benefits of ethylene plants. cracking furnace ethylene devices, so as to obviously
tons/year Ethylene
improve the economic benefit of the
Cracking Furnace
ethylene devices.
Research and
Countermeasures To solve the problem of coking and carbon deposition
on the Problem of To solve the problem of temperature rise and of the bearing bush of the compressor, eliminate the
It can further improve the comprehensive
Lubricating Paint significant temperature fluctuations in bearing Concluded hidden trouble of abnormal fluctuation and rise of the
technical level of the device.
Film in Large shells temperature of the bearing bush of the compressor, and
Centrifugal realize the long-term safe operation of the equipment.
Compressor Units
Implementation To efficiently and comprehensively utilize the Concluded The operation consumption of three gasifiers in Zone II To ensure no increase in carbon emissions,
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and application of by-product petroleum coke and solve the of Series II for coal coke gasification is 860,000 build a supporting carbon dioxide recovery
petroleum coke dilemma of no raw coal in the second stage tons/year of petroleum coke, and the effective gas unit, and produce 500,000 tons/year of food-
gasification gasification of coal coke gasification output of a single furnace (CO+H2) is 170,000 Nm3/h. grade liquid CO2
(1) Compared with other additives, the water
separation rate of the water-coke slurry is reduced by
Research and 20%;
(2) Enhance stability and maintain no hard To provide reliable raw materials for the
development of To solve the unfavorable factors such as high
precipitation for 24 hours: gasification transformation of the company's
additives for water separation rate, poor stability and easy Concluded
by-product clean utilization project and
petroleum coke layering of slurry after petroleum coke pulping (3) Reduce the amount of water coke slurry additives increase the company's by-product benefits.
slurry by 10%;
(4) It has been applied in the ZPC gasification unit of
Zhejiang and has achieved significant results.
C3 and C4 are always mixed in the cracking furnace of
the ethylene plant, so it is difficult for the cracking When there is an excess of propane raw
Study on cracking To enable the cracking furnace process propane
furnace to reach the optimal cracking depth. After the materials, a single cracking furnace can be
propane or LPG material separately, find the optimal cracking
Concluded cracking furnace cracks propane or LPG alone, C3 and used to process propane raw materials,
separately in depth, improve the yield of ethylene and
C4 can be cracked separately, which is convenient for improving the conversion rate of propane
cracking furnace propylene, and obtain good economic benefits.
adjusting the cracking depth and improving the and the yield of ethylene and propylene.
cracking income.
By adjusting the combustion state of the
By researching the influencing factors of the
cracking furnace in a timely manner, and
thermal efficiency of the cracking furnace,
Study on studying the influencing factors of the thermal
To further optimize the thermal efficiency of the the project shall tackle key problems one by
improving thermal efficiency of the cracking furnace, the project
Concluded cracking furnace, and increase the average thermal one, so as to improve the thermal efficiency
efficiency of shall tackle key problems one by one, so as to
efficiency of the cracking furnace by 0.5% of the cracking furnace, reduce fuel
cracking furnace improve the thermal efficiency of the cracking
consumption, and create good economic
furnace, reduce fuel consumption, and create
benefits.
good economic benefits.
To establish the R&D and localization project of
Study on treatment (1) Energy-saving and environment-friendly burner of
energy-saving and environmentally-friendly The development and localization of
scheme of domestic incineration device
burners for the incineration unit of the Drainage energy-saving and environment-friendly
chemical waste
Department of Public Works Division, and to Concluded (2) One-key intelligent control system for burners of burners for incinerators can promote the
liquid in refining
solve the problems of high procurement cost, incineration unit upgrading and localization of relevant
and chemical
delayed after-sales service, long maintenance (3) Form a technical research report heating and combustion equipment in ZPC.
integration project
period and design defects of imported burners
Development of
To deeply desulfurize the dry gas and liquefied
Deep
gas, reduce the temperature of the exhaust gas Save energy, reduce emissions and enhance
Desulfurization Ongoing Total sulfur removal of purified dry gas to 5mg/m
of the heating furnace and improve the thermal the competitiveness of enterprises
Technology for
efficiency of the heating furnace.
Light Hydrocarbon
R&D of 2420D To develop and produce shrink film material Concluded To form a complete solution for mass production of Shrink film has a wide range of uses in the
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special material for 2420D, increase product diversification, 2420D. field of heavy packaging and has good
shrink film in 1# improve market awareness, and enhance the economic benefits.
LDPE plant marginal efficiency of the device by the high
value-added LDPE products.
Research and
Development of
Special Material
Through groping for the process parameters, the To form a complete set of technology for stable
V6110S for To enhance the competitiveness of
product meeting the performance requirements Concluded production of V6110S, and realize stable, excellent and
Photovoltaic enterprises
of photovoltaic film was produced. high yield;
Adhesive Film of
1#LDPE-EVA
Device
3# PP Plant
The EP300H was successfully developed, mass
EP300H New To develop high-impact EP300H polypropylene To increase the market competitiveness of
Concluded production was achieved, and marginal efficiency was
Product resin special material with higher added value ZPC products
increased.
Development
Development of a
New Type of
To develop new adsorption separation processes Use a toluene desorption agent for adsorption and Save energy, reduce emissions and enhance
Adsorption and Ongoing
using light desorption agents. separation. the competitiveness of enterprises
Separation
Technology
Cause Analysis of
Corrosion Leakage
of Non-
To prolong the long-term stable operation of
hydrogenation To reduce corrosion in non-hydrogenation stripping
To reduce corrosion in non-hydrogenation The program the device, and reduce the hidden dangers of
Acid Water Steam acid steam extraction system and reflux system To
stripping acid steam extraction system and is being personnel poisoning and environmental
Extraction Device realize the stable operation of that device for a long
reflux system demonstrated pollution caused by leakage of the system
Air Cooler and period
due to corrosion.
Development of
New Corrosion
Resistant Materials
Enable ZPC Phase I and Phase II air separation
Technical Research circulating water to adjust according to the
on Preventing operation of the air separation unit, ensuring
that the outlet air temperature of the air cooling Ensure that the carbon dioxide content in
Carbon Dioxide Install a coil-type heat exchanger in the circulating
tower of the pre-cooling system of the Phase I the air at the outlet of the adsorber does not
from Exceeding water tank to prevent corrosion of the heat exchanger
and Phase II air separation unit is less than Concluded exceed or slightly exceed the standard, and
Standard and by circulating water and achieve adjustable circulating
10℃, maximizing the adsorption capacity of the ensure the stable operation of the air
Ensuring Safe water temperature.
molecular sieve adsorbent in the purification separation device.
Operation of Air
Separation System system, reducing the impact of excessive carbon
dioxide in the environment on the operation of
the air separation unit, and achieving stable
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operation of the air separation unit.
Research on
Through quantitative analysis of the model,
Optimization Plan
propose an optimization plan for energy-saving Full process model of key units in naphtha processing It can further improve the comprehensive
for Production of Concluded
optimization with no investment and less device technical level of the device.
Naphth Processing
investment.
Unit
Through the optimization research of the delayed
The closed decoking system of 200,000
coking closed decoking system, a complete set of high-
tons/year delayed coking realizes the
Complete the optimization design and reliability large-scale delayed coking closed decoking
intelligent closed operation of petroleum
Study on the construction of the 3.2 million tons/year delayed system technology is formed, and the closed operation
coke from decoking, transportation, storage
Optimization of coking closed decoking system, eliminate of the decoking, transportation, storage and loading
and loading, fundamentally eliminates the
Closed Decoking operational bottlenecks, and achieve 110% load Ongoing processes of the 3.2 million tons/year delayed coking
pollution of water vapor, malodorous gas
System for production of the device and long-term unit is realized, the coke powder is eliminated, and the
and coke powder, and realizes the clean
Delayed Coking operation of the intelligent closed decoking oil gas generated in the decoking process is recovered
production of delayed coking unit. It
system. in a centralized manner to reduce pollution. Minimize
provides a unit example for the sustainable
labor intensity and fundamentally improve the image
development of delayed coking units.
of heavy pollution units in coking units.
Development of
Waste Heat By using forced ventilation, the intake air can
Recovery be evenly distributed, and corrosion inhibitors The exhaust gas temperature reaches 85±5℃, and the
Save energy, reduce emissions and enhance
Technology for can reduce the sulfur content in fuel gas, reduce Ongoing thermal efficiency of the heating furnace is
the competitiveness of enterprises
Super-large environmental pollution, and improve the ≥95%±0.5%
Chemical Process combustion efficiency of fuel gas.
Furnace
Development of
Develop high value-added pipe material 23050,
New Product Develop the production scheme of high-density To increase the market competitiveness of
enrich the device brand, and improve economic Concluded
23050 of 2# HDPE polyethylene 23050. ZPC products
efficiency.
Device
Technical
Development of
C3-C6 Recovery
Recover C3-C6 components in the non- Realize the recovery and utilization of heavy Improve the added value of the product and
from Fuel Gas in Ongoing
condensable gas. components in the dry gas. recover LPG.
Aromatic
Hydrocarbon
Combination Unit
Research and (1) Complete the research and design of the (1) Extract phenol in 5- 10% wt phenol tar residue The technology of this project takes
development of tar process route of phenol acetone tar treatment produced by the process of preparing phenol and acetophenone and phenol as target products,
recovery technology and the construction of the device; acetone by using cumene to increase the phenol yield recovers and extracts useful substances from
Concluded
technology in (2) After the stable operation of the second of the device; phenol tar, realizes value appreciation of
phenol-acetone phase phenol acetone plant, the phenol tar (2) Refine acetophenone to obtain 99.5% wt additional unit products, reduces waste tar amount,
plant treatment unit will gradually be put into acetophenone product, increase the comprehensive reduces carbon emission and realizes clean
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operation, and experimental research will be output value of the unit; production. Acetophenone is an important
completed to extract 99% of the acetophenone (3) The unit cuts down waste tar residue by about 30% organic compound, which is widely used as
product, reduce the amount of tar, solve the wt, lowers tar treatment costs, and reduces carbon raw material in the organic synthesis
problem of difficult phenol tar treatment in the emissions. industry, such as pesticide, medicine,
phenol acetone production technology using perfume, paint and fuel.
cumene, and achieve clean production;
(3) Analyze and study the operation data,
perfect and optimize the technology, and form a
mature and reliable industrial technology for
phenol tar treatment.
Development of
high-purity
benzene for
caprolactam
Reduce methylcyclopentane in benzene
preparation by Ongoing Toluene + methylcyclohexane (wt%) ≤0.015 Improve the added value of the product.
products.
removing MCP
from
disproportionation
reaction products
Development of a
low-energy
consumption co- Produce ortho-xylene from the aromatic
Ongoing The purity of o-xylene is expected to reach 98% Improve the added value of the product.
production separation unit.
technology for
ortho-xylene
By using ordinary loading catalysts and applying the
Research on the
RHC-220 hydrocracking catalyst independently
First Application
Increase the production of heavy naphtha, developed by the Chinese Academy of Sciences, the
of Domestic Provide a factory example for the
improve the yield of heavy naphtha, and provide production of heavy naphtha was increased. At the
Catalysts in 1 # Ongoing sustainable development of wax oil
high-quality raw materials for downstream units initial stage of operation, the yield of heavy naphtha
Wax Oil hydrocracking units.
to further increase PX production reached over 35.2%, providing high-quality raw
Hydrocracking
materials for downstream units and achieving the goal
Unit
of further increasing PX production.
The actual environmental protection water
Study on quality requirements are far lower than the
Optimization of The neutralization unit in acidic water is To avoid equipment shutdown due to leakage in the design drainage water quality, which can
Neutralization transformed into a parallel double-line operation single process of the wastewater treatment unit. shorten the process, reduce the number of
Concluded
Process in Acidic to ensure online switching and reduce the Parallel dual-line switching can meet the conditions for additives, and effectively control the
Water of Sulfuric consumption of additives. equipment handover and maintenance. investment of additives, equipment
Acid Plant maintenance and equipment maintenance
costs in the later period.
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New Product
Development of To develop the special material of medium
S1025 was successfully developed, mass production To enhance the competitiveness of
S1025 in 1# melting homopolymerization S1025 Concluded
was realized, and marginal benefits were improved. enterprises
Polypropylene polypropylene resin with higher added value.
Plant
The ultra-high flow thin-wall injection molding
product was developed on the 450,000 t/a
Research and (1) Develop a high hydrogen-regulated catalyst system
polypropylene plant of Zhejiang Petroleum &
Development of with independent intellectual property rights;
Chemical Company, and the product
High Hydrogen
performance reached the same level in the (2) The technology is suitable for the existing Reduce costs and enhance the
Modified Ongoing
market. Apply to the 450,000 tons/year polypropylene plant process and can meet the competitiveness of enterprises
Polypropylene
polypropylene plant of ZPC to develop ultra- development needs of high fluidity, high rigidity and
Catalyst System
high flow thin-walled injection molding high value-added products.
Technology
products, whose performance has reached the
same level in the market.
Through the research and implementation of
this project, new technologies are adopted to
Through optimization research on the dirty oil system,
Through optimization research on the waste oil change the direction of impurities, break the
impurities in the diesel system are eliminated, the heat
Study on recycling system, eliminate production vicious circle of a closed loop, ensure the
exchange efficiency of the diesel system's cold
optimization of bottlenecks, remove impurities in the diesel long-term operation of cold exchange
Ongoing exchange equipment is improved, and frequent
waste oil recycling process, solve frequent blockage of heat equipment and devices, promote the new
cleaning of the diesel system's cold exchange
system exchangers, and ensure long-term operation of large-scale refinery and new devices for
equipment is solved to ensure long-term operation of
cold exchange equipment. capacity expansion and reconstruction to
the cold exchange equipment.
break the production bottleneck, and
provide industrial application data.
Complete the industrial application of new
By adopting a new type of propylene additive, the propylene additives, implement capacity
increase in propylene content in liquefied gas is not expansion and transformation of gas
Study on New Conduct industrial application of a new type of
less than 1.5wt%, and the increase in propylene content separation units, maximize the production of
Propylene Additive propylene additive and study its industrial Ongoing
in liquefied gas is ≤ 4wt% (relative to the feed), propylene, and provide high-value-added
in FCC Process application effect.
ultimately achieving the goal of producing more chemical raw materials for subsequent units.
propylene. Its successful utilization can also provide
reference significance for other FCC units.
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R&D personnel of the Company
2022
Number of R&D personnel (counts) 2,731
Proportion of R&D personnel 14.05%
Educational structure of R&D personnel
Bachelor's Degree 1,377
Master's Degree 98
Doctor's Degree 5
Composition of R&D personnel by ages
30 years old and below 313
30 to 40 years old 1,656
Above 40 years old 762
R&D investment of the Company
2022 2021 Change
R&D investment (RMB) 4,367,112,486.97 3,915,264,380.48 11.54%
Proportion of R&D investment in
1.51% 2.14% -0.63%
operating income
Capitalized amount of R&D investment
0.00 0.00 0.00%
(RMB)
Proportion of capitalized R&D
0.00% 0.00% 0.00%
investment in R&D investment
5. Cash flow
Unit: RMB
Year-on-year increase
Item 2022 2021
(decrease)
Subtotal of cash inflow from operating
366,502,609,500.41 219,196,120,573.76 67.20%
activities
Subtotal of cash outflow from operating
347,444,472,615.05 185,631,335,139.82 87.17%
activities
Net cash flow from operating activities 19,058,136,885.36 33,564,785,433.94 -43.22%
Subtotal of cash inflow from investment
4,751,717,442.06 6,929,501,995.88 -31.43%
activities
Subtotal of cash outflow from
33,718,025,019.38 63,770,258,145.29 -47.13%
investment activities
Net cash flow from investment activities -28,966,307,577.32 -56,840,756,149.41 -49.04%
Subtotal of cash inflow from financing
110,301,656,209.13 146,564,790,343.94 -24.74%
activities
Subtotal of cash outflow from financing
98,744,982,879.68 115,727,335,770.67 -14.67%
activities
Net cash flow from financing activities 11,556,673,329.45 30,837,454,573.27 -62.52%
Net increase in cash and cash
1,120,442,159.11 7,746,493,601.66 -85.54%
equivalents
Description of main influencing factors of significant year-on-year changes in relevant data
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1. The net cash flow generated from the Company's operating activities this year was RMB 19.058 billion, a
year-on-year decrease of about RMB 14.506 billion, mainly due to the year-on-year decrease in the Company's
gross profit on product sales during this period.
2. The net cash flow generated by the company's investment activities this year was RMB-28.966 billion, a
decrease of approximately RMB 27.874 billion compared to that of the previous year, mainly due to a decrease in
cash paid for the purchase and construction of fixed assets by its subsidiary ZPC in the current period.
3. The net cash flow generated by the company's fundraising activities this year was RMB 11.557 billion, a
decrease of approximately RMB 19.281 billion compared to that of the previous year, mainly due to the year-on-
year decrease in new bank loans of its subsidiary, ZPC.
Reasons for the significant difference between the net cash flow generated by the Company's operating
activities and the annual net profit during the reporting period:
The reasons for the significant difference between the cash flow generated by the Company's operating
activities and the annual net profit during the reporting period are detailed in the supplementary information of the
cash flow statement in the Company's annual audit report.
Ⅴ. Non-core business analysis
Unit: RMB
Proportion in Whether it is
Amount Cause description
total profit sustainable
Mainly the Company's futures
Investment income 693,478,145.84 12.34% Yes
investment income
Profit (loss) from
10,728,066.90 0.19% Mainly formed by futures investment No
fair value change
Mainly the write off of inventory falling
Asset impairment -282,256,547.80 -5.02% No
price reserves
Non-operating
4,744,570.37 0.08% Mainly compensation income No
income
Non-operating Mainly the loss of scrap of fixed assets
14,101,126.33 0.25% No
expenses and external donations
Income from asset Mainly the income from disposal of
3,885,078.23 0.07% No
disposal fixed assets
Other income 2,363,252,918.77 42.06% Mainly government subsidies No
Credit impairment Mainly formed by the provision for bad
-15,203,657.84 -0.27% No
loss debts of accounts receivable
Ⅵ. Analysis of assets and liabilities
1) Significant changes in asset composition
Unit: RMB
End of 2022 Beginning of 2022 Increase Description
(decrease) of
Proportion in Proportion in of significant
Amount Amount
total assets total assets proportion changes
Monetary Fund 18,238,774,380.21 5.03% 17,681,643,415.29 5.23% -0.20%
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Accounts
7,128,011,047.03 1.97% 5,411,114,000.05 1.60% 0.37%
receivable
Contract assets 0.00% 0.00% 0.00%
Stock 60,689,909,793.94 16.74% 47,110,220,115.64 13.93% 2.81%
Investment real
10,667,020.60 0.00% 10,938,466.60 0.00% 0.00%
estate
Long-term
equity 8,733,329,806.35 2.41% 7,590,869,411.21 2.24% 0.16%
investment
fixed assets 222,161,110,736.65 61.27% 124,274,418,986.34 36.74% 24.53%
Construction in
26,135,157,629.45 7.21% 108,671,656,611.87 32.13% -24.92%
progress
Right-of-use
225,606,768.34 0.06% 253,078,428.01 0.07% -0.01%
assets
Short term loan 26,369,552,400.50 7.27% 37,870,906,450.61 11.20% -3.92%
Contractual
3,734,262,391.81 1.03% 4,240,816,908.28 1.25% -0.22%
liabilities
Long-term loan 130,962,386,969.29 36.12% 109,118,407,483.85 32.26% 3.86%
Lease
213,400,396.45 0.06% 233,775,736.95 0.07% -0.01%
liabilities
Non-current
liabilities due 20,461,387,778.93 5.64% 13,376,297,922.08 3.95% 1.69%
within one year
2. Assets and liabilities measured at fair value
Unit: RMB
Profit
and loss
Accumulated Purchase Sales
from Impairment
Amount at the fair value amount amount Amount by
changes accrued in Other
Item beginning of changes in the in the the end of the
in fair the current changes
the period recognized current current period
value for period
in equity period period
the
period
Financial assets
Financial
assets held for
trading
(excluding 345,151,994.32 188,283,362.49
derivative
financial
assets)
Total above 345,151,994.32 188,283,362.49
Financial
214,744,004.37 588,769,711.55
liabilities
3、Restrictions on rights of assets as of the end of the reporting period
Unit: RMB
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2022 年年度报告全文
Carrying value at the end of
Item Reasons for restrictions
2022
See note to monetary funds in the notes to the
Monetary Fund 2,779,494,576.43
financial statements for details.
Pledged for issuing bank acceptance bills as
Accounts receivable financing 3,316,973.51
collateral
Fixed assets 217,071,880,411.54 Bank loan mortgage, letter of credit mortgage
Construction in progress 20,075,082,279.55 Bank loan mortgage
Intangible assets 4,409,441,534.82 Bank loan mortgage
Total 244,339,215,775.85
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Ⅶ. Analysis of investment status
1) Overall situation
Investment amount in the reporting period (RMB) Investment amount in the same period of last year (RMB) Variations
8,733,329,806.35 7,590,869,411.21 15.05%
2). Significant equity investments acquired during the reporting period
Unit: RMB
Curre Whet
Antic
Investe Invest Invest Type Progress as nt her
Main Invest Share Sourc ipate Disclosure
d ment ment of of the invest involv
busine ment holdin e of Partner d date (if Disclosure index (if any)
compa amoun horiz produ balance ment ed in
ss type g ratio funds inco any)
ny t on cts sheet date profit litigati
me
(loss) on
Produc
tion http://www.cninfo.com.cn/new/disclos
Ningbo One-
Hainan and Capital ure/detail?plate=szse&orgId=9900015
500,00 50.00 Equity Hengyi time PTA,c December
Yishen sales of increas Done 0 0 No 502&stockCode=002493&announcem
0,000 % Fund Trading invest hips 14, 2021
g PTA e entId=1211893385&announcementTi
Co., Ltd ment
and me=2021-12-14
chips
3. Major ongoing non-equity investments during the reporting period
□ Applicable Not applicable
4. Investment in financial assets
(1) Securities investment
There was no investment in securities during the reporting period.
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(2) Investment in derivatives
The Company had no derivatives investment during the reporting period.
5. Use of the raised funds
The Company did not use the raised funds during the reporting period.
VIII. Sales of Major Assets and Equities
1. Sales of major assets
The Company did not sell any major assets during the reporting period.
2. Sale of major equities
□ Applicable Not applicable
IX. Analysis of Main Holding and Joint-stock Companies
Main subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit
Unit：RMB 10,000
Compan Compa Registere Total Net Operatin Operatin Net
Main business
y name ny Type d capital assets assets g revenue g profit profit
Production, sales, storage
and transportation of
petroleum products, import
Subsidia and export of crude oil, 28,686,84 9,194,701 23,016,37 550,519.0 605,204.3
ZPC 5,580,000
ry sales of petrochemical raw 9.85 .72 2.02 3 4
and auxiliary materials and
equipment and their spare
parts
Zhongjin Production and sales of
Subsidia 3,727,811 832,266.7 4,765,988 - -
Petroche chemical products and 600,000
ry .03 4 .46 59,347.53 47,594.78
mical petroleum products
Yisheng Project investment,
Subsidia 1,753,393 763,653.8 2,974,782
Investme domestic trade, import and 201,800 32,849.78 40,524.44
ry .73 8 .89
nt export of goods
Production and sales of
Yisheng Subsidia 1,607,183 617,658.2 2,974,782 - -
PTA and polyester bottle 245,645
Dahua ry .30 5 .89 19,633.63 11,947.20
chips
Yisheng
Subsidia Production and sales of 1,228,897 286,002.9 3,370,855 - -
New 300,000
ry PTA .79 4 .32 33,559.80 25,199.76
Materials
Joint-
Production and sales of
Hainan stock 1,234,567 642,597.7 2,271,698 121,806.7 104,001.2
PTA and polyester bottle 458,000
Yisheng compan .09 5 .29 0 9
chips
y
Joint
Zhejiang Production and sales of USD 1,876,955 893,494.6 2,138,615 - -
stock
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Yisheng compan PTA 51,444.71 .57 9 .21 15,767.22 17,193.75
y
Shengyua
Production and sales of
n Subsidia 628,308.4 216,793.0 414,122.7
polyester chips and 200,000 951.65 344.97
Chemical ry 8 3 7
polyester filaments
Fiber
New material technology
Yongshen
research and development,
g Subsidia 228,166.1 225,849.4
plastic product 16,000 73,198.43 1,638.34 2,729.45
Technolo ry 0 3
manufacturing, synthetic
gy
fibre manufacturing
Acquisition and disposal of subsidiaries during the reporting period
Acquisition and disposal methods Impact on overall production,
Company name
during the reporting period operation and performance
Ningbo Rongxincheng Trading Co., Ltd. Newly established No significant impact
Rongsheng New Materials (Zhoushan)
Newly established No significant impact
Co., Ltd.
Rongsheng New Materials (Taizhou) Co.,
Newly established No significant impact
Ltd.
ZPC (Zhejiang Free Trade Zone) Green
Newly established No significant impact
Petrochemical Research Institute Co., Ltd.
Yisheng New Materials Trading Co., Ltd. Newly established No significant impact
Zhoushan ZPC Sales Co., Ltd. Newly established No significant impact
Zhejiang FreeTrade Zone Rongxin Trade
Cancelled No significant impact
Co., Ltd.
Rongxiang (Shanghai) Chemical Co., Ltd. Cancelled No significant impact
Description of major holding companies and joint-stock companies
(1) Zhejiang Petroleum & Chemical Co., Ltd.
Zhejiang Petroleum & Chemical Co., Ltd. (ZPC) is the implementing body of the Company's 40 million
tons/year refining and chemical integration project. Its business scope includes general business items such as
production, sales, storage and transportation of petroleum products, import and export trade of crude oil, sales of
petrochemical raw and auxiliary materials and equipment and their parts and components. With Li Shuirong as its
legal representative, ZPC, a holding subsidiary of the Company, owns a registered capital of RMB 5.58 million.
By the end of 2022, the company had total assets of RMB 286,868.50 million and net assets of RMB 91,947.02
million; In 2022, the company achieved an operating revenue of RMB 230,163.72 million and a net profit of
RMB 6,052.04 million.
(2) Ningbo Zhongjin Petrochemical Co., Ltd.
The business scope of Ningbo Zhongjin Petrochemical Co., Ltd. includes the storage of chemical products;
wholesale and retail of chemical products and petroleum products (except hazardous chemicals). With Li
Shuirong as its legal representative, Zhongjin Petrochemical, a wholly-owned subsidiary of the Company, owns a
registered capital of RMB 600 million. By the end of 2022, the company had total assets of RMB 37,278.11
million and net assets of RMB 8,322.67 million; In 2022, the company achieved an operating revenue of RMB
47,659.88 million and a net profit of RMB -475.95 million.
(3) Dalian Yisheng Investment Co., Ltd.
Dalian Yisheng Investment Co., Ltd. is mainly engaged in industrial investment. With Li Shuirong as its
legal representative, Yisheng Investment owns registered capital of RMB 2,018 million. The Company holds 70%
of its equity. By the end of 2022, the company had total assets of RMB 17,533.94 million and net assets of RMB
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7,636.54 million; In 2022, the company achieved an operating revenue of RMB 29,747.83 million and a net profit
of RMB 405.24 million.
(4) Yisheng Dahua Petrochemical Co., Ltd.
Yisheng Dahua Petrochemical Co., Ltd. is mainly engaged in the production and sales of PTA. With Li
Shuirong as its legal representative, Yisheng Dahua Petrochemical owns a registered capital of RMB 2,456.45
million. By the end of 2022, the company had total assets of RMB 16,071.83 million and net assets of RMB
6,176.58 million; In 2022, the company achieved an operating revenue of RMB 29,747.83 million and a net profit
of RMB -119.47 million.
(5) Zhejiang Yisheng New Materials Co., Ltd.
Zhejiang Yisheng New Materials Co., Ltd. is mainly engaged in the production and sales of PTA. The legal
representative is Xu Baoyue, the registered capital is RMB 3 billion, and Ningbo Zhongjin Petrochemical Co., Ltd.
holds 51% of its equity. By the end of 2022, the company had total assets of RMB 12,288.98 million and net
assets of RMB 2,860.03 million; In 2022, the Company achieved an operating revenue of RMB 33,708.55 million
and a net profit of RMB -252 million.
(6) Hainan Yisheng Petrochemical Co., Ltd.
Hainan Yisheng Petrochemical Co., Ltd. is a joint-stock subsidiary of Yisheng Investment, the Company's
holding subsidiary. The Company's main business includes the production and sales of PTA and polyester bottle
chips, and import and export business. With Fang Xianshui as its legal representative, Yisheng Petrochemical
owns a registered capital of RMB 4,580 million. Yisheng Investment holds 50% of its equity. By the end of 2022,
the company had total assets of RMB 12,345.67 million and net assets of RMB 6,425.98 million; In 2022, the
company achieved an operating revenue of RMB 22,716.98 million and a net profit of RMB 1,040.01 million.
(7) Zhejiang Yisheng Petrochemical Co., Ltd.
Zhejiang Yisheng Petrochemical Co., Ltd. is mainly engaged in PTA production and sales. With Fang
Xianshui as its legal representative, Yisheng Petrochemical owns a registered capital of USD 514,447,100. The
Company holds 30% of its equity. By the end of 2022, the company had total assets of RMB 18,769.56 million
and net assets of RMB 8,934.95 million; In 2022, the company achieved an operating revenue of RMB 21,386.15
million and a net profit of RMB -171.94 million.
(8) Zhejiang Shengyuan Chemical Fiber Co., Ltd.
Zhejiang Shengyuan Chemical Fiber Co., Ltd. is the implementing body of the Company's multi-functional
fibre technical transformation project. Its business scope covers the manufacturing and processing of polyester
and spandex (only for preparation) and the distribution of light textile raw materials and products. With Li
Shuirong as its legal representative, Shengyuan Chemical Fiber, a wholly-owned subsidiary of the Company,
owns a registered capital of RMB 2 million. By the end of 2022, the company had total assets of RMB 6,283.08
million and net assets of RMB 2,167.93 million; In 2022, the company achieved an operating revenue of RMB
4,141.23 million and a net profit of RMB 3.45 million.
(9) Zhejiang Yongsheng Technology Co., Ltd.
Zhejiang Yongsheng Technology Co., Ltd. is mainly engaged in the production and sales of polyester
products. With Xu Yongming as its legal representative, Yongsheng Technology owns a registered capital of
RMB 160 million. The Company holds 70% of its equity. By the end of 2022, the company had total assets of
RMB 2,281.66 million and net assets of RMB 731.98 million; In 2022, the company achieved an operating
revenue of RMB 2,258.49 million and a net profit of RMB 27.29 million.
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X. Structured Entities Controlled by the Company
□ Applicable Not applicable
XI. Prospect for the Company's Future Development
(1) Business plan
In 2023, under the leadership of the Board of Directors, we will actively carry out work around the
company's strategy; on the one hand, we will ensure the efficient and stable operation of existing devices and
continuously release benefits, and at the same time, we will promote the smooth implementation of projects under
construction and implement relevant work according to the established objectives; on the other hand, we will pay
close attention to relevant policies of the central and local governments and the latest market trends. On the basis
of stable operation, we will flexibly adjust production and sales strategies and carry out risk prevention and
control.
1. Pay attention to policy changes and use the "baton" of strategic development accurately
In 2022, China's economy withstood multiple tests, such as accelerated evolution of world changes and
domestic economic downturn, achieving a growth rate of 3%, better than the global average. Although the current
economic recovery and development still face many difficulties and challenges, China will usher in a new
situation after the 20th National Congress in 2023, especially after the two sessions. In the face of the complicated
situation at home and abroad, the state will pay more attention to and encourage the development of the real
economy and private enterprises, which is a rare window period. Therefore, we should always pay close attention
to the introduction and implementation of various policies, plan and act accordingly, and seize the opportunity for
development.
2. Pay close attention to investment changes and play a proactive role in project coordination
In 2022, the Phase I and Phase II projects of ZPC were successfully completed, realizing stable operation
with a high load. Relying on the advantages of large refining and chemical platform, we shall turn our investment
eyes to the field of high-end new materials, especially focusing on tracking the real-time progress of green
projects in the field of new materials. The company and its subsidiaries shall also accelerate the construction of
new projects in Zhejiang, Dalian, Hainan and other bases.
3. Pay attention to market changes and anchor the "wind vane" of supply and demand balance
The prosperity of the downstream consumer market is relatively weak, posing higher requirements for the
control of company cost performance. Therefore, we will continue to promote and improve the performance
evaluation system for all employees, adhere to market orientation in procurement, production, and sales,
dynamically adjust supply and demand levels based on the actual situation of production and market, and further
improve product quality with quality management as the core.
4. Pay attention to technological changes and activate the "driver" of scientific research innovation
In the context of carbon peaking and carbon neutrality, the state has stricter requirements on energy
conservation, consumption reduction and technological innovation and other aspects of the industry. Therefore,
we shall accelerate the pace of transformation and upgrading, actively understand and master the relevant
information and application of cutting-edge new technologies, continuously increase investment in research and
development, and provide timely technical support for the planning of subsequent projects. Meanwhile, we will
continue to focus on the goal of building a digital and intelligent factory, and continue to vigorously promote the
implementation of machine-for-person projects to achieve industrial upgrading and intelligent production.
5. Pay attention to team changes and cultivate "new force" for talent construction
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The Company adheres to the people-oriented principle, constantly revises and improves the principles and
policies of talent cultivation, enhances the comprehensive quality and ability of employees, strengthens the
construction of a talent team, strictly divides and implements the requirements and responsibilities of each post,
carries out talent cultivation and reserve work in a planned and targeted manner, strives to build a multi-form,
multi-channel and three-dimensional talent cultivation pattern, and creates a strong atmosphere of valuing,
cherishing and loving talents, so as to inject continuous vitality into the comprehensive and high-quality
development of the Company.
2）Potential risks
(1) Risk from price fluctuation of raw material
As a member of the crude oil industrial chain, the Company's main cost of production is the cost of upstream
raw materials. Therefore, the fluctuation of crude oil prices will result in the price fluctuation of products in the
industry chain, resulting in the fluctuation of corporate benefits and an increase in sales risk. Our crude oil team in
Singapore has rich experience in procurement, trade, hedging, and logistics. With the help of the marketing
department, we will focus on market changes, adhere to the combination of strategic procurement and preferential
procurement, and effectively reduce procurement costs. We also strengthen sales management and arrange
flexible long-term and short-term contracts to reduce the adverse impact of raw material fluctuations.
(2) Risk of economic fluctuation
With chemicals, oil products, and polyester products as main products, our business covers the petrochemical
and chemical fiber manufacturing industries, which go hand in hand with the national economy and people's
livelihoods. Therefore, the prosperity of the national economy is tied to our industrial development. In recent
years, the slowdown in demand growth from downstream industries has affected the petrochemical industry to a
certain extent. We will pay close attention to the economic situation and market trends, and take practical and
effective measures to minimize the risks posed by macroeconomic fluctuations.
(3) Risk of exchange rate
In the future, the market-oriented reform of the exchange rate will become one of the important factors
affecting investors' asset allocation. If the USD further strengthens in the interest rate increase cycle, it may lead
to greater pressure on the depreciation of the Chinese Yuan. As the Company pursues international growth, the
sharp fluctuation of the currency exchange rate of foreign exchange settlement, which is dominated by the USD,
will jeopardize our daily operations. While controlling financial risks, we will continue to optimize the financing
structure and the financing scale of USD funds, control the cost within a reasonable range, and then reduce the
adverse impact of the exchange rate.
(4) Risk of market competition
With the rapid development of the synthetic fiber industry chain in recent years, a certain degree of
overcapacity has emerged in the petrochemical industry. The further launch of new capacity will intensify market
competition and negatively affect the performance of our relevant products. We will accelerate the continuous
expansion of the downstream deep processing fields, further strengthen our anti-risk capabilities, improve the
level of product differentiation and competitiveness, strengthen the development of the market and enhance our
overall profitability.
Ⅻ. Reception of research, communication, interview and other activities during the reporting
period
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Ways
Recep
Reception of Object Main contents discussed and Basic information index of
Date tion
place recept type materials provided research
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Relations
Aug. 23, Individu Invest osure/detail?plate=szse&orgId=9900 d=9900015502&stockCode=002
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Section IV Corporate Governance
I. Basic Information of Our Corporate Governance
During the reporting period, the Company followed the Company Law of the People’s Republic of China, the
Securities Law of the People’s Republic of China, the Guidelines on Corporate Governance for Listed Companies,
the Rules Governing the Listing of Shares on Shenzhen Stock Exchange, the Guidelines of Shenzhen Stock
Exchange on Standardized Operation of Listed Companies and other applicable laws and regulations issued by
China Securities Regulatory Commission. We constantly improved internal corporate governance, established a
sound internal control system, and regulated operational processes in line with the above-mentioned legal
requirements. The status quo of our corporate governance met the requirements of normative documents
concerning listed companies governance. The Company did not receive any administrative supervision documents
from the regulatory authorities during the reporting period.
1. The shareholders and the General Meeting of Shareholders
During the reporting period, the Company standardized the convening and voting procedures of the General
Meeting of Shareholders in strict accordance with the Company Law of the People’s Republic of China, the Rules
for the Shareholders’ Meetings of Listed Companies, the Articles of Association, the Rules of Procedure of the
General Meeting of Shareholders, and other applicable regulations and requirements so as to ensure that all
shareholders, especially small and medium-sized shareholders, enjoy equal status and fully exercise their rights.
Additionally, according to the Articles of Association and other applicable laws and regulations, the matters to be
voted at the General Meeting of Shareholders would be first reviewed by the corresponding authority and then
submitted to the General Meeting for deliberation. There was no approval beyond authority or implementation
before deliberation. During the reporting period, the Company held four General Meeting of Shareholders, which
was convened by the Board of Directors, and invited lawyers to guarantee the legitimacy and normalization of the
General Meeting of Shareholders.
2. The relationship between the controlling shareholders and the listed company
The Company and its controlling shareholders are completely separated when it comes to business, personnel,
assets, institutions and finances. The Company has full capability of independent operations. The controlling
shareholders strictly regulate their own behavior, fulfill corresponding obligations, and do not interfere, directly or
indirectly, in the Company’s decision-making and business activities without the presence of the Board of
Directors. The company has independent business and operational autonomy, so it is independent of the
controlling shareholders in terms of business, assets, personnel, organization and finances. The Board of Directors,
Board of Supervisors and internal organizations can operate independently. There is no horizontal competition
between the Company and the controlling shareholders, the Company does not provide undisclosed information to
the controlling shareholders, and the controlling shareholders do not appropriate the Company’s funds. Moreover,
the Company provides no guarantee for its controlling shareholders.
3. The Board of Directors and its members
The Company elects Board members in strict accordance with the selection and appointment procedures
stipulated in the Company Law of the People’s Republic of China and the Articles of Association. During the
reporting period, the Company’s Board of Directors met nine times, and the convening and voting procedures of
the Board Meetings satisfied the requirements of the Rules Governing the Listing of Shares on Shenzhen Stock
Exchange, the Articles of Association and the Rules of Procedure of the Board of Directors. All the directors can
work diligently and dutifully in accordance with the Rules of Procedure of the Board of Directors, attend the
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Board of Directors Meetings, participate in the training sessions, and learn relevant laws and regulations.
Independent directors independently perform their duties, safeguard the overall interests of the Company, protect
the legitimate rights and interests of minority shareholders from harm, and offer independent opinions on
important and major matters. The special committees under the Board of Directors perform their respective duties
and give full play to their professional functions, greatly improving the efficiency of the Board.
4. The Board of Supervisors and its members
The Company elects supervisors in strict accordance with the Company Law of the People’s Republic of
China and the Articles of Association. During the reporting period, the Company’s Board of Supervisors met nine
times, and the convening and voting procedures of the Board of Supervisors Meetings complied with the Rules
Governing the Listing of Shares on Shenzhen Stock Exchange, the Articles of Association and the Rules of
Procedure of the Board of Supervisors. The Company’s supervisors can earnestly perform their duties and assume
responsibility for the shareholders in accordance with the relevant requirements. They also supervise the
Company’s finances, related-party transactions, internal controls and the performance of directors and senior
executives, provide their opinions, and safeguard the legitimate rights and interests of the Company and its
shareholders.
5. Performance evaluation standards and incentive mechanisms
The Company established a set of fair and transparent performance evaluation standards and incentive
mechanisms and has constantly improved it. The appointment process of senior executives is open and transparent
and complies with the applicable laws and regulations.
6. Stakeholders
The Company respects and protects the legitimate rights and interests of its shareholders, customers,
employees, suppliers, partners and other stakeholders, strengthens communication and cooperation with them, and
strives to balance their interests while maximizing the profits, so as to sustain the healthy development of the
Company.
7. Information disclosure management
During the reporting period, the Company strengthened information disclosure management and fulfilled the
obligation of information disclosure in accordance with the spirit of documents issued by Shenzhen Stock
Exchange and other applicable laws and regulations. The Company disclosed its information on the Securities
Times, China Securities Journal, and Juchao Zixun website (http://www.cninfo.com.cn) to enable investors to
access our information in a fair manner. The Company also established smooth communication channels such as
the Investor Hotline and Investor Relations Interactive Platform of Shenzhen Stock Exchange to better exchange
opinions.
During the reporting period, the reality of corporate governance met the requirements of normative
documents concerning listed company governance issued by the China Securities Regulatory Commission.
II. Corporate Independence from the Controlling Shareholders and Actual Controller in
Terms of Assets, Personnel, Finances, Organization, and Business
The Company is completely separated from its controlling shareholders and other subsidiaries or affiliates in
terms of business, personnel, assets, organization, and finances. It has the full capability of conducting business
and maintaining operations independently.
1. Business independence
The Company has independent business operation systems, such as an independent procurement system,
production system, technology R&D system and marketing system, and can operate independently while directly
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satisfying market demands. The Company has no competitive relationship with its major shareholders and other
related parties under their control, nor does it rely on any of them in business operations.
2. Personnel independence
The Company manages an independent staff. The Company is separated from its shareholders and other
subsidiaries or affiliates under their control when it comes to salary payment and welfare expenditures, and has
established an independent and complete human resources management system. The Company’s Chairman,
General Manager, Deputy General Manager, Chief Financial Officer, Secretary of the Board of Directors and
other senior executives are appointed in accordance with the applicable laws, regulations, normative documents
and the Articles of Association. They work full-time in the Company and receive remuneration, and so do the
financial personnel.
3. Assets independence
The ownership of major operating assets such as land, buildings, production equipment and office facilities
of the Company and its holding subsidiaries is clear and complete. The Company does not provide guarantee for
shareholders and companies controlled by them for the sake of assets, benefits or reputation. The Company has
complete control over all assets, and the funds are not misappropriated, meaning the interests of the Company and
its shareholders are not compromised.
4. Organizational independence
The Company has established effective bodies such as the General Meeting of Shareholders, the Board of
Directors and the Board of Supervisors, and developed corresponding rules of procedure. All institutions make
independent decisions within their respective authority in accordance with the Company Law of the People’s
Republic of China and the Articles of Association. According to the real needs of business development, the
Company established an independent and complete organizational framework in line with the actual situation and
conducted business activities independently. The Company is completely separated from the shareholder
organizations and their related parties in terms of business operations, and there is no mixed operation.
5. Financial independence
The Company has set up a complete and independent financial department, assigned independent financial
personnel, and established an independent accounting system. The financial department can make financial
decisions independently, and the Company has a standardized financial accounting system and a financial
management system designed for subsidiaries. The Company opens an independent bank account. As an
independent taxpayer, the Company declares taxes independently and fulfills the obligation of tax payment.
III. Horizontal Competition
□ Applicable Not applicable
IV. The Convening of the Annual General Meeting and Interim Shareholders’ Meeting During
the Reporting Period
1. General meeting of shareholders during the reporting period
Investor
Convening Disclosure
Session Type Attendanc Meeting Resolution
Date Date
e Ratio
The First February 9, February 10, http://www.cninfo.com.cn/new/disclosure/detail?pl
Extraordinary 72.84%
Extraordinar 2022 2022 ate=szse&orgId=9900015502&stockCode=002493
General
y General &announcementId=1212331245&announcementTi
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Meeting in Meeting me=2022-02-10
2022
General http://www.cninfo.com.cn/new/disclosure/detail?pl
Annual
Meeting of May 20, May 21, ate=szse&orgId=9900015502&stockCode=002493
General 74.38%
Shareholders 2022 2022 &announcementId=1213437487&announcementTi
Meeting
2021 me=2022-05-21
The Second
http://www.cninfo.com.cn/new/disclosure/detail?pl
Extraordinar Extraordinary
September 5, September 6, ate=szse&orgId=9900015502&stockCode=002493
y General General 72.65%
2022 2022 &announcementId=1214539354&announcementTi
Meeting in Meeting
me=2022-09-06
2022
The Third
http://www.cninfo.com.cn/new/disclosure/detail?pl
Extraordinar Extraordinary
December December ate=szse&orgId=9900015502&stockCode=002493
y General General 73.76%
30, 2022 31, 2022 &announcementId=1215493663&announcementTi
Meeting in Meeting
me=2022-12-31
2022
2. Preferred shareholders with voting rights recovered requested to convene an extraordinary general
meeting of shareholders
□ Applicable Not applicable
V. Basic Information of the Board Members, Supervisors and Senior Executives
1. Profile
Number
Start End Numb Numbe
of Shares Other Number
Date Date er of r of
Gende Ag Held at Variatio of Shares
Name Title Status of of Share Share
r e the n in Held at
Tenur Tenur Increa Decrea
Beginnin Share the End
e e se se
g
Li April
Incumben 643,275,0 643,275,0
Shuiron Chairman Male 67 8,
cy 00 00
g 2010
Li April
Incumben 96,525,00 96,525,00
Yongqin Director Male 59 8,
cy 0 0
g 2010
April
Incumben Femal
Li Caie Director 60 8,
cy e
2010
April
Yu Incumben Femal
Director 55 8,
Fengdi cy e
2010
Director
Xiang May
and Incumben
Jiongjio Male 40 26,
General cy
ng 2015
Manager
Director April
Quan Incumben Femal
and Board 45 29,
Weiying cy e
Secretary 2010
Independe May
Yan Incumben
nt Male 58 10,
Jianmiao cy
Director 2019
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Independe May
Shao Incumben Femal
nt 60 20,
Yiping cy e
Director 2021
Zheng Independe May
Incumben
Xiaodon nt Male 45 10,
cy
g Director 2019
Sun May
Superviso Incumben
Guomin Male 42 10,
r cy
g 2019
April
Li Superviso Incumben 96,525,00 96,525,00
Male 53 8,
Guoqing r cy 0 0
2010
Xu April
Superviso Incumben
Yongmi Male 52 8,
r cy
ng 2010
Chief May
Wang Incumben Femal
Financial 44 10,
Yafang cy e
Officer 2019
Deputy May July
Meng Demissio
General Male 55 10, 11,
Fanqiu n
Manager 2019 2022
Deputy Octob
Zhou Incumben
General Male 48 er 25,
Xianhe cy
Manager 2022
836,325,0 836,325,0
Total -- -- -- -- -- -- 0 0 0
00 00
Whether there was any resignation of directors and supervisors and dismissal of officers in the reporting period
Mr. Meng Fanqiu, the Deputy General Manager, no longer serves as the Deputy General Manager due to job
adjustment.
Personnel Change of Directors, Supervisors and Senior Executives
Name Title Type Date Cause
Assistant General
Meng Fanqiu Demission July 12, 2022 Job adjustment
Manager
Assistant General Engagement by the
Zhou Xianhe Engagement October 25, 2022
Manager Board of Directors
2. Holding of Post
The background, main work experience, and current main duties of directors, supervisors and officers in the
Company
(1) Main work experience of current directors:
Mr. Li Shuirong: Senior Economist, university degree, Chinese nationality; He formerly served as Chairman
and General Manager of Rongsheng Chemical Fiber Group Co., Ltd. and Chairman and President of Zhejiang
Rongsheng Holding Group Co., Ltd.; He is also the Invited Vice President of China National Textile and Apparel
Council, Vice President of China Chemical Fibers Association, and Senior Consultant of Zhejiang Province
Zheshang Economic Development Center; He is currently the Chairman of Rongsheng Petrochemical Co., Ltd.
and the Chairman of Zhejiang Rongsheng Holding Group Co., Ltd.
Mr. Li Yongqing: college degree, Chinese nationality; He formerly served as Deputy Manager and General
Manager Assistant of the Supply Engineering Department of Rongsheng Chemical Fiber Group Co., Ltd; He is
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currently the Vice Chairman of Zhejiang Rongsheng Holding Group Co., Ltd. and a director of Rongsheng
Petrochemical Co., Ltd.
Ms. Li Cai'e: Senior Economist, Bachelor's degree, Chinese nationality; She was awarded many honorary
titles such as model worker of Xiaoshan District in 2008, and advanced accountant of Xiaoshan District in
Hangzhou; She once served as Deputy General Manager of Rongsheng Chemical Fiber Group Co., Ltd. and Chief
Financial Officer of Rongsheng Petrochemical Co., Ltd.; She is currently the Vice President of Zhejiang
Rongsheng Holding Group Co., Ltd., a director of Rongsheng Petrochemical Co., Ltd., a director of Zhejiang
Petroleum & Chemical Co., Ltd., and a director of Ningbo United Group Co., Ltd.
Ms. Yu Fengdi: College degree; She was awarded the title of Model Worker of Hangzhou City; She has
served as a technician of the Biotechnology Department of Shaoxing County No. 1 Polyester Factory, the head of
the Biotechnology Department of Shaoxing No. 1 Chemical Fiber Factory, the manager and the assistant to the
general manager of the False Twisting Department of Rongsheng Chemical Fiber Group Co., Ltd.; She is
currently the Vice President of Zhejiang Rongsheng Holding Group Co., Ltd. and a director of Rongsheng
Petrochemical Co., Ltd.
Mr. Xiang Jiongjiong: Master's degree; He is currently the Director and General Manager of Rongsheng
Petrochemical Co., Ltd. and the director of Zhejiang Petroleum & Chemical Co., Ltd.; He is also a member of the
Standing Committee of the Chinese People's Political Consultative Conference of Xiaoshan Strict, Hangzhou City,
Vice Chairman of Xiaoshan District Federation of Industry and Commerce, Vice Chairman of Xiaoshan District
Chemical Fiber Textile (Printing and Dyeing) Industry Association, and adjunct professor of Zhejiang Sci-Tech
University. Selected in Forbes "2021 China's Best CEO List".
Ms. Quan Weiying: Bachelor's degree, once worked in Investment Department and Finance Department of
Rongsheng Petrochemical Co., Ltd., and won the titles of "Excellent Secretary of the Board of Directors" and
"Top Secretary of the Board of Directors"; She is currently a director and secretary of the Board of Directors of
Rongsheng Petrochemical Co., Ltd.
Mr. Yan Jianmiao: Chinese nationality, without permanent residency abroad, Ph.D. in Economics. He has
served as the former deputy director of the Department of International Trade of the School of Finance and
Economics, Hangzhou University and the director of the Department of International Economics of the School of
Economics, Zhejiang University. He is currently a professor at the School of Economics of Zhejiang University
and the executive director of Zhejiang International Economy & Trade Institute. He is currently an independent
director of Rongsheng Petrochemical Co., Ltd., Zhejiang Garden Biotechnology Co., Ltd. and Zhejiang Jinggong
Technology Co., Ltd.
Ms. Shao Yiping: Master degree, professor of accounting, master's supervisor, main research interests:
Accounting theory and accounting standards, accounting professional judgment and earnings management, asset
impairment accounting, etc., focusing on many fields such as corporate litigation risk and accounting robustness;
She served as Secretary of Party General Branch and Vice President of the School of Accounting, Zhejiang
University of Finance and Economics, Director of the Personnel Department of Zhejiang University of Finance
and Economics, Member of the CPC Committee of Zhejiang University of Finance and Economics, Secretary of
the CPC Committee of Dongfang College, Member of the CPC Committee and Chairman of the Labor Union of
Zhejiang University of Finance and Economics, Member of Zhejiang Accounting System Advisory Expert
Committee, etc. She is currently a professor of accounting at the Zhejiang University of Finance and Economics, a
member of the Professional and Technical Committee of the Zhejiang Institute of Certified Public Accountants,
and an executive director of the Hangzhou Institute of Certified Public Accountants. She is currently an
independent director of Rongsheng Petrochemical Co., Ltd., Zhejiang Halead New Material Co., Ltd., Zhejiang
Garden Biotechnology Co., Ltd., UE Furniture Co., Ltd. and Zhongtian Service Co., Ltd.
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Mr. Zheng Xiaodong: Chinese nationality, without permanent residency abroad, Master of Maritime Law. He
is currently the managing partner and executive director of Beijing JT&N Law Firm, an arbitrator of the Shanghai
International Arbitration Center, a special researcher of the Shanghai Institute of Finance and Law, and an
independent director of Rongsheng Petrochemical Co., Ltd. and Beijing Foyou Pharmaceutical Co., Ltd. He
served as a member of the Listing Committee of the Shanghai Stock Exchange, deputy head of the Enterprise
Compliance Special Working Group of All China Lawyers Association (including enterprise compliance and
ESG), and deputy director of the Professional Committee of Securities Law of Beijing Lawyers Association.
Zheng Xiaodong has extensive experience in corporate compliance, ESG, investment and financing, and corporate
listing, and has presided over the ESG reporting of JT&N.
(2) Main work experience of current supervisors:
Mr. Sun Guoming: Member of CPC, Bachelor's degree. He ever served as an inspector, assistant manager
and deputy manager of the Inspection Department of Zhejiang Rongsheng Holding Group Co., Ltd.; Manager of
the Warehouse Management Department and General Management Department of Ningbo Zhongjin
Petrochemical Co., Ltd. He is currently the Deputy Director of the Inspection Department of Zhejiang Rongsheng
Holding Group Co., Ltd. and the Supervisor of Rongsheng Petrochemical Co., Ltd.
Mr. Li Guoqing: College degree; He used to be assistant manager of the Sales Department of Rongsheng
Chemical Fiber Group Co., Ltd.; He is currently the Assistant to Vice President of Zhejiang Rongsheng Holding
Group Co., Ltd. and the Supervisor of Rongsheng Petrochemical Co., Ltd.
Mr. Xu Yongming: Bachelor's degree, senior economist, successively served as director of the Spinning
Factory of Zhejiang Yuandong Chemical Fiber Group, manager of the spinning department and assistant to
general manager of Rongsheng Chemical Fiber Group Co., Ltd.; He is currently the supervisor of Rongsheng
Petrochemical Co., Ltd. and the general manager of Zhejiang Yongsheng Technology Co., Ltd.
(3) Main work experience of current senior management personnel:
Mr. Xiang Jiongjiong: Master degree; He is currently the Director and General Manager of Rongsheng
Petrochemical Co., Ltd., the Director of Zhejiang Petroleum & Chemical Co., Ltd. and the Director of Zhejiang
Petroleum Co., Ltd.; He is also a member of the Standing Committee of the Chinese People's Political
Consultative Conference of Xiaoshan Strict, Hangzhou City, Vice Chairman of Xiaoshan District Federation of
Industry and Commerce, Vice Chairman of Xiaoshan District Chemical Fiber Textile (Printing and Dyeing)
Industry Association, and adjunct professor of Zhejiang Sci-Tech University. He was awarded the title of "Top
Ten Young People in Zhejiang Province" and was selected as one of the "2021 China's Best CEOs" by Forbes.
Mr. Zhou Xianhe: male, senior engineer, bachelor's degree, Chinese nationality; He successively served as
head of the Finished Product Inspection Department of Zhejiang Rongsheng Chemical Fiber Co., Ltd., sales
manager of Zhejiang Rongsheng Holdings Group Co., Ltd., sales manager of Hangzhou Rongsheng Chemical
Fiber Sales Co., Ltd., deputy general manager of Zhejiang Shengyuan Chemical Fiber Co., Ltd. and part-time
professor of Zhejiang Sci-Tech University; He is also a member of the National Chemical Fiber Standardization
Technical Committee (SAC/TC586); He is currently the General Manager of Zhejiang Shengyuan Chemical Fiber
Co., Ltd.
Ms. Quan Weiying: Bachelor's degree, once worked in the Investment Department and Finance Department
of Rongsheng Petrochemical Co., Ltd., and won the titles of "Excellent Secretary of the Board of Directors" and
"Top Secretary of the Board of Directors"; She is currently a director and secretary of the Board of Directors of
Rongsheng Petrochemical Co., Ltd.
Ms. Wang Yafang: Bachelor's degree, senior accountant, certified public accountant; She used to be deputy
manager, manager and deputy financial director of the Financial Management Department of Zhejiang Rongsheng
Holding Group Co., Ltd.; She is currently the Chief Financial Officer of Rongsheng Petrochemical Co., Ltd.
Holding of Post at Shareholder Organization
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Whether Receiving
Start Date of End Date Remuneration and
Name Shareholder Organization Title
Tenure of Tenure Benefit at Shareholder
Organization
Li Shuirong Rongsheng Holdings Group Chairman June 20, 2007 / No
Li Yongqing Rongsheng Holdings Group Director June 20, 2007 / Yes
Sun Guoming Rongsheng Holdings Group Supervisor May 10, 2019 / Yes
Li Guoqing Rongsheng Holdings Group Director June 20, 2007 / Yes
Yu Fengdi Rongsheng Holdings Group Vice President May 9, 2017 / Yes
Li Caie Rongsheng Holdings Group Vice President May 11, 2019 / No
Additional
N/A
Information
Office holding in other companies
Whether to
receive
Name of the Positions Ending
Starting date of the remuneration
person holding Name of other units held in date of
term and allowance
the office other units the term
in other
organizations
Li Shuirong ZPC Chairman June 18, 2015 No
Li Shuirong Shengyuan Chemical Fiber Chairman June 15, 2010 No
Li Shuirong Yisheng Investment Chairman December 19, 2005 No
Li Shuirong Yisheng Dahua Chairman December 19, 2005 No
Li Shuirong Zhongjin Petrochemical Chairman April 21, 2009 No
Li Shuirong Ningbo United Group Co., Ltd. Chairman May 18, 2010 No
Li Shuirong Zhejiang Yisheng Director December 12, 2002 No
Li Shuirong Xiaoshan Rural Commercial Bank Director August 1, 2004 No
Li Shuirong Yibin Tianyuan Group Co., Ltd. Director June 19, 2009 No
Li Yongqing Zhejiang Yisheng Director December 12, 2002 No
Li Yongqing Shengyuan Chemical Fiber Director June 15, 2010 No
Li Yongqing Zhongjin Petrochemical Director April 21, 2009 No
Li Yongqing Yisheng Investment Director December 19, 2005 No
Li Yongqing Yisheng Dahua Director December 19, 2005 No
Li Cai'e ZPC Director June 18, 2015 No
Li Cai'e Zhongjin Petrochemical Director April 21, 2009 No
Li Cai'e Yisheng Investment Director December 19, 2005 No
Li Cai'e Yisheng Dahua Director December 19, 2005 No
Li Cai'e Yibin Tianyuan Group Co., Ltd. Director June 19, 2009 No
Li Cai'e Ningbo United Group Co., Ltd. Director May 18, 2010 No
Hangzhou High-Tech Zone
Li Cai'e (Binjiang) Dongguan Micro Credit Director January 4, 2009 No
Co., Ltd.
Zhejiang Yuhuan Yongxing Rural
Wang Yafang Director September 8, 2017 No
Bank
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Co., Ltd.
Zhejiang Diaoshan Rural
Wang Yafang Director February 5, 2018 No
Commercial Bank Co., Ltd.
Suzhou Shenghui Equipment Co.,
Wang Yafang Director May 14, 2018 No
Ltd.
Hainan Shenggu Petrochemical
Wang Yafang Equipment Supervisor November 25, 2019 No
Investment Co., Ltd.
Wang Yafang Rongsheng Technology Co., Ltd. Supervisor April 28, 2016 No
Hangzhou Shengyuan Real Estate
Wang Yafang Supervisor June 24, 2014 No
Development Co., Ltd.
Dalian Yishengyuan Property Co.,
Wang Yafang Supervisor March 19, 2018 No
Ltd.
Xiang Jiongjiong ZPC Director June 18, 2015 No
Xiang Jiongjiong Zhejiang Petroleum Director September 16, 2017 No
Xiang Jiongjiong Rongsheng International Trading Director February 1, 2016 No
Xiang Jiongjiong Rongsheng Coal Co., Ltd. Director June 21, 2018 No
Xiang Jiongjiong Rongxiang (Shanghai) Director January 8, 2015 No
Li Guoqing Shengyuan Chemical Fiber Supervisor June 26, 2006 No
Quan Weiying Hong Kong Sheng Hui Director July 5, 2007 No
Yan Jianmiao Zhejiang University Professor September 1, 1998 Yes
Zhejiang University of Finance
Shao Yiping Professor July 1, 1988 Yes
and Economics
Zheng Xiaodong Beijing JT&N Law Firm Partner December 1, 2009 Yes
Description of
employment in None
other units
3. Remuneration of the Board members, Supervisors and senior executives
According to the Articles of Association and the Work Regulations of the Remuneration and Appraisal
Committee of the Board of Directors, the remuneration of and its payment to directors and supervisors should be
determined by the General Meeting of Shareholders. The directors and supervisors who hold specific positions
in the Company receive remuneration based on their post and the internal remuneration system, and receive no
further allowances. The Remuneration and Appraisal Committee would assess the annual performance of the
senior executives and determine their remuneration based on the evaluation findings. The pay package is then
submitted to the Board of Directors for deliberation and approval. In conclusion, the remuneration of the
Company’s directors, supervisors and senior executives is determined by corporate performance, the current
remuneration system and personnel performance appraisal.
Remuneration of the Company’s Board Members, Supervisors and Senior Executives During the Reporting Period
Unit: RMB 10,000
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Whether Receiving
Total Pre-tax
Remuneration from
Name Title Sex Age Status Remuneration
the Company’s
from the Company
Connected Party
Li Shuirong Chairman Male 67 Incumbency 472.71 No
Li Yongqing Director Male 59 Incumbency Yes
Li Caie Director Female 60 Incumbency Yes
Yu Fengdi Director Female 55 Incumbency Yes
Director and
Xiang Jiongjiong Male 40 Incumbency 238.88 No
General Manager
Director and Board
Quan Weiying Female 45 Incumbency 97.38 No
Secretary
Independent
Yan Jianmiao Male 58 Incumbency 11.41 No
Director
Independent
Shao Yiping Female 60 Incumbency 11.41 No
Director
Independent
Zheng Xiaodong Male 45 Incumbency 11.41 No
Director
Chairman of the
Sun Guoming Board of Male 42 Incumbency Yes
Supervisors
Li Guoqing Supervisor Male 53 Incumbency Yes
Xu Yongming Supervisor Male 52 Incumbency 164.41 No
Chief Financial
Wang Yafang Female 44 Incumbency 96.86 No
Officer
Deputy General
Meng Fanqiu Male 55 Demission 278.51 No
Manager
Deputy General
Zhou Xianhe Male 48 Incumbency 143.79 No
Manager
Total 1,526.77 --
VI. The Performance of Duties of Board Members During the Reporting Period
1. Convening of the Board of Directors Meetings during the reporting period
Session Convening Date Disclosure Date Meeting Resolution
The 20th Meeting
of the Fifth http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&org
Session of the January 19, 2022 January 20, 2022 Id=9900015502&stockCode=002493&announcementId=121221
Board of 7253&announcementTime=2022-01-20
Directors
The 21st Meeting
of the Fifth http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&org
Session of the March 15, 2022 March 16, 2022 Id=9900015502&stockCode=002493&announcementId=121257
Board of 8469&announcementTime=2022-03-16
Directors
The 22nd
Meeting of the http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&org
Fifth Session of April 23, 2022 April 26, 2022 Id=9900015502&stockCode=002493&announcementId=121310
the Board of 5328&announcementTime=2022-04-26
Directors
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The 23rd Meeting
of the Fifth http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&org
Session of the April 28, 2022 April 29, 2022 Id=9900015502&stockCode=002493&announcementId=121320
Board of 3764&announcementTime=2022-04-29
Directors
The First Meeting
of the Sixth http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&org
Session of the May 20, 2022 May 21, 2022 Id=9900015502&stockCode=002493&announcementId=121343
Board of 7486&announcementTime=2022-05-21
Directors
The Second
Meeting of the http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&org
Sixth Session of August 4, 2022 August 5, 2022 Id=9900015502&stockCode=002493&announcementId=121422
the Board of 0118&announcementTime=2022-08-05
Directors
The Third
Meeting of the http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&org
Sixth Session of August 17, 2022 August 18, 2022 Id=9900015502&stockCode=002493&announcementId=121431
the Board of 8863&announcementTime=2022-08-18
Directors
The Fourth
Meeting of the http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&org
Sixth Session of October 25, 2022 October 26, 2022 Id=9900015502&stockCode=002493&announcementId=121490
the Board of 0284&announcementTime=2022-10-26
Directors
The Fifth
Meeting of the http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&org
Sixth Session of December 13, 2022 December 14, 2022 Id=9900015502&stockCode=002493&announcementId=121534
the Board of 2642&announcementTime=2022-12-14
Directors
2. Directors' attendance at the Board of Directors Meetings and General Meeting of Shareholders
Directors' Attendance at the Board of Directors Meetings and General Meeting of Shareholders
Number of the Number
Whether
Board of Number Number of Number of
Number of Being Absent
Directors of Attendance of Attendanc
Attendance from the
Meeting that Presence at the Board Absence e at the
Name of at the Board Board of
Should be at the of Directors from the General
Directors of Directors Directors
Attended Board of Meeting via Board of Meeting
Meeting by Meeting
During the Directors Videolink or Directors of
Proxy Twice in a
Reporting Meeting Telephone Meeting Sharehold
Row
Period ers
Li Shuirong 9 1 8 0 0 No 4
Li Yongqing 9 1 8 0 0 No 4
Li Caie 9 1 8 0 0 No 4
Yu Fengdi 9 1 8 0 0 No 4
Xiang
9 1 8 0 0 No 4
Jiongjiong
Quan Weiying 9 1 8 0 0 No 4
Yan Jianmiao 9 1 8 0 0 No 4
Shao Yiping 9 1 8 0 0 No 4
Zheng
9 1 8 0 0 No 4
Xiaodong
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3. Disagreement voiced by Board Members on relevant corporate matters
Whether directors propose an objection to the Company's relevant matters
During the reporting period, the Board members voiced no disagreement on relevant corporate matters.
4. Additional information on the performance of duties of Board members
Acting in accordance with the Company Law of the People’s Republic of China, the Securities Law of the
People’s Republic of China, the Articles of Association, the Rules of Procedure of the Board of Directors, the
Code of Independent Directors and other applicable laws and regulations, the Company’s directors seek to have a
detailed understanding of corporate activities, focus on the standardized business operations, exercise their rights
prudently, earnestly perform their duties, and attend relevant meetings. They also put forward valuable
suggestions to improve the Company’s systems and business decision-making, and conscientiously review
different proposals so as to play their role in strengthening the internal supervision mechanism and safeguarding
the legitimate rights and interests of the Company and all its shareholders.
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VII. The Special Committees under the Board of Directors During the Reporting Period
Other
Matters that
Number Matters
Convening Raise
Name Members of Content of Meeting Important Opinions and Suggestions Concerning
Date Disagreement
Sessions Performance
(If Any)
of Duties
In terms of internal audit, the Audit Committee examined the
Reviewed the Rongsheng
implementation of the internal audit department’s work plan and
Petrochemical Co., Ltd.
verified the audit results. In terms of financial reports, the Audit
2021 Internal Audit Work
Li Yongqing Committee communicated with the accounting department and
Report, the Rongsheng
Li Caie external accountants, examined the norms of the financial system
Petrochemical Co., Ltd. All the
and the preparation process for financial reports, and ensured the
The Audit Yan Jianmiao January 20, 2021 Q4 Work Report, the motions
1 accuracy and integrity of the reports. In terms of internal control, No
Committee Shao Yiping 2021 Rongsheng Petrochemical were passed
the Audit Committee agreed that the Company has established a
Zheng Co., Ltd. 2022 Internal after review.
well-designed internal control framework, and that the internal
Audit Work Plan, and the
Xiaodong control department has fully carried out the internal control test
Rongsheng Petrochemical
process in strict accordance with the relevant norms and
Co., Ltd. 2022 Q1 Internal
regulations, so as to effectively control the gaps in internal control
Audit Work Plan.
and improve the capability in this respect.
Li Yongqing Reviewed the Rongsheng
Petrochemical Co., Ltd.
Li Caie In line with the legal guidance and the Company’s actual All the
2022 Q1 Work Report and
The Audit Yan Jianmiao April 18, conditions, the Audit Committee reviewed the quarterly report, put motions
1 the Rongsheng No
Committee Shao Yiping 2022 forward opinions on the internal audit results, and guided the were passed
Petrochemical Co., Ltd.
internal audit efforts. after review.
Zheng 2022 Q2 Internal Audit
Xiaodong Work Plan.
Li Yongqing Reviewed the Rongsheng
Petrochemical Co., Ltd.
Li Caie In line with the legal guidance and the Company’s actual All the
2022 Q2 Work Report and
The Audit Yan Jianmiao July 15, conditions, the Audit Committee reviewed the quarterly report, put motions
1 the Rongsheng No
Committee Shao Yiping 2022 forward opinions on the internal audit results, and guided the were passed
Petrochemical Co., Ltd.
Zheng internal audit efforts. after review.
2022 Q3 Internal Audit
Xiaodong Work Plan.
Li Yongqing Reviewed the Rongsheng
Petrochemical Co., Ltd.
Li Caie In line with the legal guidance and the Company’s actual All the
2022 Q3 Internal Audit
The Audit Yan Jianmiao October 25, conditions, the Audit Committee reviewed the quarterly report, put motions
1 Work Report and the No
Committee Shao Yiping 2022 forward opinions on the internal audit results, and guided the were passed
Rongsheng Petrochemical
internal audit efforts. after review.
Zheng Co., Ltd. 2022 Q4 Internal
Xiaodong Audit Work Plan.
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During the reporting period, the Nominating Committee met to
Shao Yiping fully discuss the size and composition of the Board of Directors,
and studied the rationality of the election conditions, selection
Li Shuirong All the
The procedures and term of office of the Company’s directors and
Yu Fengdi April 23, Reviewed the 2021 Work motions
Nominating 1 senior executives in accordance with the Company Law of the No
Yan Jianmiao 2022 Summary. were passed
Committee People’s Republic of China, the Guidelines on Corporate
Zheng after review.
Governance for Listed Companies, the Articles of Association and
Xiaodong other applicable laws and regulations, and in combination with the
Company’s actual conditions.
Li Shuirong All the members The major
Li Yongqing summarized the work in business
The Strategy Yan Jianmiao Major business plan for 2022: Strengthen the monitoring of major
April 23, 2021 and reviewed the plan for
& ESG Shao Yiping 1 projects; Deepen the research on major investment decisions; and No
2022 major business plan for 2022 was
Committee Prevent and control market risks and maintain stable operations.
Zheng 2022 and the ESG report passed after
Xiaodong for 2022. review.
Yan Jianmiao During the reporting period, the Remuneration and Appraisal
Li Shuirong Reviewed the 2021
The Committee reviewed the rationality of the remuneration package All the
Remuneration of the
Remuneration Yu Fengdi April 23, and policy of the Company’s directors, supervisors and senior motions
Shao Yiping 1 Company’s Board No
and Appraisal 2022 executives, and conducted performance evaluation on them were passed
Members, Supervisors and
Committee Zheng according to their authority and major responsibilities, along with after review.
Senior Executives.
Xiaodong the internal finances and KPI performance for 2021.
The Risk Control Committee analyzed the situation in 2020 and
agreed that in 2021, the Company should continue to focus on the
overarching business objectives, summarize and implement the
Zheng Reviewed the Assessment fundamental risk control processes across the major links, key
Xiaodong Yan of the Company’s fields and even the whole process, foster a good risk control All the
The Risk Jianmiao Li April 23, Operational Risks in 2020 culture, and improve the comprehensive risk management system. motions
Control Caie 1 No
2022 and the Suggestions on To that end, the Company should develop risk management were passed
Committee
Xiang Controlling Operational strategies, evaluate the functional structure of the risk control after review.
Jiongjiong Risks in 2021. organization, and improve the risk control information system and
internal control system, so as to achieve the annual targets in
managing risks and enhance the Company’s risk resilience and
long-term profitability.
VIII. The Work of the Board of Supervisors
During the reporting period, whether the Board of Supervisors has found that the Company was at risk in the process of its supervisory activities
The Board of Supervisors voiced no disagreement on the supervisory matters during the reporting period.
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IX. Corporate Staff
1. Staff number, professional composition, and educational background
Number of Staff on the Parent Company’s Payroll at the End
2,140
of the Reporting Period
Number of Staff on the Main Subsidiaries’ Payroll at the End 17,294
of the Reporting Period
Total Number of Staff on the Company’s Payroll at the End
19,434
of the Reporting Period
Total Number of Staff Receiving Remuneration 19,434
Number of Retired Staff Whose Pensions Are Covered by the
0
Parent Company and Main Subsidiaries
Professional Composition
Category Number
Production Staff 14,325
Sales Staff 316
Technical Staff 2,521
Financial Staff 141
Administrative Staff 1,637
Logistical Staff 494
Total 19,434
Educational Background
Category Number
Bachelor’s Degree or Above 5,075
Junior College 7,300
Senior High School and Technical Secondary School 2,597
Others 4,462
Total 19,434
2. Remuneration policy
The Company abides by the Labor Law of the People’s Republic of China and other applicable rules and
regulations, and takes a performance-based remuneration allocation approach. The Company continues to improve
the pay and benefits structure, determines the salary based on an employee’s responsibility and capability, and
employs a differential reward mechanism, so as to motivate the employees and inspire their creativity.
3. Training program
The Company values the development of employees’ business skills and has built a well-designed career
development platform to enable employees to identify their future paths and unlock their full potential. The
Company delivers professional and practical training programs in a systematic way by combining theory and
practice to improve the employees’ comprehensive capability in the professional field.
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X. Distribution of Corporate Profits and Shift of Public Accumulation Funds to Capital Stock
Formulation, implementation or adjustment of profit distribution policy, especially the cash dividend policy,
during the reporting period
According to the profit distribution plan for 2021 approved at the 22nd Meeting of the Fifth Session of the
Board of Directors on April 25, 2022, based on the current equity base of 10,099,179,979 shares, the Company
plans to give RMB 1.50 in cash (tax included) to all its shareholders for every ten shares they hold. There will be
no equity dividend or conversion of equity reserve into the share capital of the Company. The shares held in the
Company’s dedicated securities repurchase account will not be included in this round of profit distribution. The
Company has completed the profit distribution according to the plan.
Special description of cash dividend policy
Whether it complies with provisions of the Articles of Association or resolution of the General Meeting: Yes
Whether the dividend standard and proportion are specific and clear: Yes
Whether relevant decision-making procedures and mechanisms are complete: Yes
Whether the independent directors fulfill their duties and obligations: Yes
Whether the medium and small shareholders fully raise their opinions and demands, and whether their
Yes
lawful rights and interests are protected fully:
Whether the conditions and procedures for adjusting or changing cash dividend policy are compliant
Yes
and transparent:
Profit distribution and conversion of capital reserve into share capital during the reporting period
Number of Bonus Shares Given for Ten Shares 0
Number of distributed dividends per ten shares (RMB) (tax inclusive) 1.5
Share capital base of distribution plan (share) 9,842,382,348
Amount of cash dividends (RMB) (tax inclusive) 1,476,357,352.00
Amount of cash dividends paid in other means (such as share repurchase) (RMB) 0.00
Total amount of cash dividends (including other means) (RMB) 1,476,357,352.00
Distributable profits (RMB) 1,760,789,418.72
Proportion of total cash dividends (including other means) in total profit distribution 100%
Cash dividends
The Company shall distribute no less than 80% of its profits in cash dividends if the Company has become mature and has no
arrangement for major capital disbursement;
Detailed Information on the Distribution of Corporate Profits and the Shift Plan of Public Accumulation Funds to Capital
Stock
As audited by Pan-China Certified Public Accountants (Special General Partnership), the Company (parent company) achieved a net
profit of RMB1,737,747,286.10 in 2022, including an undistributed profit of RMB1,704,130,316.18 at the beginning of the year, a
statutory surplus reserve of RMB 173,774,728.61 withdrawn in the current period, and a cash dividend of RMB1,507,313,454.95
from the previous year. As of December 31, 2022, the actual profit available for shareholder distribution was RMB 1,760,789,418.72.
The Company plans to distribute a cash dividend of RMB 1.5 (tax included) to all shareholders for every ten shares. Based on
9,842,382,348 shares after deducting 283,142,652 shares that have been repurchased accumulatively as of the disclosure date of this
announcement, the total cash dividend to be distributed is RMB 1,476,357,352 (tax included), and the remaining undistributed profits
are carried forward to the next year. During the year, the Company issued 0 bonus shares for every ten shares, and converted 0 shares
for every ten shares by capital reserve. The shares held in the Company’s dedicated securities repurchase account will not be included
in this round of profit distribution. In the case that before the registration date of equity distribution, the total share capital of the
Company has changed due to the conversion of convertible bonds into shares, share repurchase, cancellation of share repurchas e
granted by equity incentive, reservation of partial share grant registration and others, the total amount of distribution is adjusted
according to the principle of distribution proportion unchanged.
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XI. Implementation of the Equity Incentive Plan, Employee Stock Ownership Plan or other
Employee Incentives
□ Applicable Not applicable
The Company had no implementation of a stock incentive plan, employee stock ownership plan or other employee
incentives during the reporting period.
XII. Institutional Development and Implementation of Internal Control During the Reporting
Period
1. Construction and implementation of internal control
The Company has established a sound internal control management system in accordance with the applicable
laws, regulations and normative documents such as the Company Law of the People’s Republic of China, the
Securities Law of the People’s Republic of China, the Guidelines on the Bylaws of Listed Companies, and the
Guidelines on Corporate Governance for Listed Companies and in combination with the actual conditions facing
the Company. The Company has developed internal management systems concerning external guarantees and
related-party transactions, regularly inspected and evaluated various systems, and amended them in line with the
new laws and regulations issued by the regulatory authorities.
2. Specific information on major internal control defects found during the reporting period
□ Yes No
XIII. Management Control of Subsidiaries during the Reporting Period
Not applicable
XIV. Internal Control Self-Assessment Report and Internal Control Audit Report
1. Internal control self-assessment report
Report Disclosure Date April 20, 2023
The Corporate Internal Control Self-Assessment Report 2022 is available on Juchao Zixun
Report Disclosure Index
Website (http://www.cninfo.com.cn).
Proportion of the Total Assets
of the Organizations Included
in the Assessment Scope to
95.46%
Those of the Company’s
Consolidated Financial
Statements
Proportion of the Operating
Revenues of the Organizations
Included in the Assessment 96.07%
Scope to Those of the
Company’s Consolidated
Financial Statements
Defect Identification Standards
Category Financial Statements Non-Financial Statements
Qualitative Standards Signs of major defects in financial statements The following scenarios are identified as
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include: (1) Invalid internal control constituting material defects: (1) The
environment; (2) Misconduct committed by decision-making procedures are not
directors, supervisors and senior executives; (3) sound; (2) Violation of national laws and
External auditors identify a material mistake in regulations, such as causing
the current financial statement neglected by the environmental pollution; (3) Gradual loss
Company; (4) Invalid supervision by the Audit of managers or technicians; (4) Frequent
Committee and internal audit department on negative news in the media; (5) The flaws
internal control; and (5) Other defects that may of internal control assessments, especially
affect the judgment of readers of the report. material or important defects, are not
Signs of important defects in financial rectified; and (6) Lack of institutional
statements include: Individual internal control control for important operations or
defects, or in combination with other defects, systematic institutional failure. Other
have a reasonable possibility that prevents the scenarios are identified as representing
timely detection and correction of any important and general defects in line with
misstatements in the financial statement that the severity.
should be paid heed to by the Board and
management although such misstatements may
not reach or exceed the importance level.
General defects refer to other control defects
apart from the material and important defects
mentioned above.
The operating income and total assets are
taken as the measurement indicators. If
The operating income and total assets are taken
the losses resulting from internal control
as the measurement indicators. If the losses
defects are related to the profit statement,
resulting from internal control defects are
the operating revenue will be taken as the
related to the profit statement, the operating
indicator. If the amount of misstatement in
revenue will be taken as the indicator. If the
the financial report caused by the
amount of misstatement in the financial report
individual defect or in combination with
caused by the individual defect or in
other defects is less than 0.5% of the
combination with other defects is less than
operating revenue, it is recognized as a
0.5% of the operating revenue, it is recognized
general defect. If the amount exceeds
as a general defect. If the amount exceeds 0.5%
0.5% but lower than 1% of the operating
but lower than 1% of the operating revenue, it
revenue, it is recognized as an important
is recognized as an important defect. If the
defect. If the amount exceeds 1% of the
amount exceeds 1% of the operating revenue, it
Qualitative Standards operating revenue, it is recognized as a
is recognized as a material defect. If the losses
material defect. If the losses resulting
resulting from internal control defects are
from internal control defects are related to
related to asset management, the total assets
asset management, the total assets will be
will be taken as the indicator. If the amount of
taken as the indicator. If the amount of
misstatement in the financial report caused by
misstatement in the financial report
the individual defect or in combination with
caused by the individual defect or in
other defects is less than 0.5% of the operating
combination with other defects is less than
revenue, it is recognized as a general defect. If
0.5% of the operating revenue, it is
the amount exceeds 0.5% but lower than 1% of
recognized as a general defect. If the
the operating revenue, it is recognized as an
amount exceeds 0.5% but lower than 1%
important defect. If the amount exceeds 1% of
of the operating revenue, it is recognized
the operating revenue, it is recognized as a
as an important defect. If the amount
material defect.
exceeds 1% of the operating revenue, it is
recognized as a material defect.
Number of Material Defects in
0
Financial Statements
Number of Material Defects in
0
Non-Financial Statements
Number of Important Defects in
0
Financial Statements
Number of Important Defects in
0
Non-Financial Statements
2. Internal control audit report
Review Suggestions Section in the Internal Control Audit Report
We believe that Rongsheng Petrochemical Co., Ltd. maintained effective internal control of financial statements across all the
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material aspects in accordance with the Guidelines No.1 for Self-Discipline Regulation of Listed Companies on Shenzhen Stock
Exchange—Standard Operations of Listed Companies on the Main Board (SZS 2022 No. 13) on December 31, 2022.
Report Disclosure Status Disclosed
Report Disclosure Date April 20, 2023
The Internal Control Assurance Report 2022 is available on
Report Disclosure Index
Juchao Zixun Website (http://www.cninfo.com.cn).
Suggestions Category Standard Clean Opinion
Whether Having Material Defects in Non-Financial
No
Statements
The internal control audit report of the accounting firm is in line with the self-assessment report of the Board of
Directors or not
Yes □No
XV. Rectification of Self-Examined Problems under the Special Campaign of Corporate
Governance for Listed Companies
During the reporting period, the Company complied with the China Securities Regulatory Commission’s
Notice on Launching the Special Campaign of Corporate Governance for Listed Companies (CSRC 2020 No.
69) and examined the problems in corporate governance conscientiously and responsibly. The Company also
received effective guidance from the local regulatory authorities, improved the ledger documenting the progress
of the Special Campaign, and offered timely feedback on the self-examination results. We found zero problems
that need rectifying.
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Section V Environmental and Social Responsibility
I. Major Environmental Issues
Environmental protection-related policies and industry standards
The Company strictly abides by the requirements of relevant laws and regulations such as the Environmental
Protection Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention
and Control of Atmospheric Pollution, the Law of the People's Republic of China on the Prevention and Control
of Water Pollution, the Law of the People's Republic of China on the Prevention and Control of Environmental
Pollution by Solid Wastes, and strictly implements the relevant standards such as the Emission Standard of
Pollutants for Petroleum Refining Industry and the Emission Standard of Pollutants for Petrochemical Industry.
1. Executive standards
(1) The emissions of flue gas from the heating furnace, catalytic regeneration flue gas, tail gas from the sulfur
unit, reforming catalytic regeneration flue gas, organic waste gas and the concentration of atmospheric pollutants
at the plant boundary shall comply with the special emission limits for atmospheric pollutants specified in the
Emission Standard of Pollutants for Petroleum Refining Industry (GB31570-2015) and the Emission Standard of
Pollutants for Petrochemical Industry (GB31571-2015) and Emission Standards for Synthetic Resin Industry
Pollutants (GB31572-2015).
(2) The sulfuric acid mist of sulfuric acid plants shall be subject to the special emission limits of atmospheric
pollutants specified in the Emission Standard of Pollutants for Sulfuric Acid Industry (GB26132-2010).
(3) The emission of odor pollutants shall comply with the Class II standard of Emission Standard for Odor
Pollutants (GB14554-93).
(4) The exhaust gas pollutants of the power boiler shall be subject to an 80% commitment value of emission
limit specified in Phase II of the Emission Standard of Air Pollutants for Coal-fired Power Plants (DB33/2147-
2018).
(5) The exhaust gas pollutants from boilers in Mamu Oil Depot shall be subject to the special emission limits
of oil-fired boilers in the Emission Standard of Air Pollutants for Boilers (GB13271-2014).
(6) The tailwater discharge of the integrated project and the sewage treatment plant of the base shall comply
with the special discharge limits specified in the Emission Standard of Pollutants for Petroleum Refining Industry
(GB 31570-2015), the Emission Standard of Pollutants for Petrochemical Industry (GB31571-2015) and the
Emission Standard of Pollutants for Synthetic Resin Industry (GB31572-2015).
(7) The noise at the boundary of the factory shall comply with the Class III standard of Emission Standard
for Noise at Boundary of Industrial Enterprises (GB12348-2008).
(8) The Integrated Project and the Solid Waste Disposal Center shall implement the Standard for Pollution
Control on the Non-hazardous Industrial Solid Waste Storage and Landfill (GB 18599-2001), the Standard for
Pollution Control of Hazardous Waste Storage (GB 18597-2001), the Standard for Pollution Control of
Hazardous Waste Incineration (GB18484-2020) and the Standard for Pollution Control of Hazardous Waste
Landfill (GB 18598-2019).
2. Quality standards
(1) The base and the points of concern shall implement the Class I (Class I area) and Class II (Class II area)
standards in the Ambient Air Quality Standard (GB3095-2012) according to the category of ambient air functional
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areas. The Cm value specified in Detailed Explanation of Integrated Emission Standard of Air Pollutants is taken
as the reference value of quality standard for non-methane total hydrocarbon (2.0mg/m3)。
(2) The monitoring of surface water shall comply with the Standard for Seawater Quality (GB3097-1997).
Environmental protection administrative licensing
Rongsheng Petrochemical: Discharge Permit: from November 6, 2021 to November 5, 2026, Certificate
No.:91330000255693873W001P。
ZPC: 1. Pollution Discharge Permit: ZPC completed the last re-application and approval for the year on
December 13, 2022, during which, in addition to revising the existing information, the sewage discharge permit
added technical transformation projects such as 3# ethylene and downstream chemical plant project, 13-18# liquid
chemical wharf project, oil and gas recovery facilities added to the intermediate tank area of oil refining, and
alkali washing tower for waste gas of phenol acetone intermediate storage tank. 2. Radiation Safety Permit: ZPC
completed the application for the Radiation Safety Permit on September 10, 2020. 3. Relevant to environmental
impact assessment: The optimization and adjustment analysis of the 40 million tons/year integration project of
Zhejiang Petroleum & Chemical Co., Ltd. was carried out in 2021, and the letter of filing opinions from the
Department of Ecological Environment of Zhejiang Province was obtained on December 22, 2021, and the rest
remained unchanged.
Zhongjin Petrochemical: obtained the pollutant discharge permit on December 2, 2020, certificate
No.:91330211764527945N001P. Valid period: from January 1, 2021 to December 31, 2025; On April 2, 2022, it
re-applied for the pollutant discharge permit and added the PTA reconstruction and expansion project with an
annual output of 3 million tons; On December 15, 2022, the pollution discharge permit was changed, and the
automatic monitoring content was revised.
Yisheng Dahua: 1. Pollutant Discharge Permit: From October 14, 2020 to October 13, 2023; 2. Radiation
safety permit: from November 26, 2021 to November 25, 2026.
Hainan Yisheng:
Period of
S/N Certificate Certificate No. Issued by
validity
Hainan Department of Ecological
1 Radiation Safety Permit QHFZ [00153] 2026.12.26
Environment
Department of Emergency
2 Work Safety License QWHAXZZ [2021] No. 003 2024.3.29
Management of Hainan Province
Administration Approval Service
Hazardous Chemicals Business
3 QPWJZ [2022] No. 0084 Bureau of Yangpu Economic & 2025.3.8
License
Technological Development Area
Transportation, Maritime and Port
4 Port Operation Permit (QP) GJZ (0017) Bureau of Yangpu Economic & 2025.9.30
Technological Development Area
Class III Enterprise of Work
Hainan Geological Testing and
5 Safety Standardization QAQB469034HGM202100002 2024.7.6
Research Center
(Petrochemical)
Class I Enterprise of Work Safety
Beijing Longzhihui Management
6 Standardization (Dangerous 2021-21-000001 2024.1.6
Consulting Co., Ltd
Goods)
Zhejiang Yisheng:
Period of
S/N Certificate Certificate No. Issued by
validity
1 Pollutant Discharge Permit 91330200744973411W001W Ningbo Ecological 2026.12.15
Environment Bureau Beilun
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Branch
Department of Ecology and
2 Radiation Safety Permit ZHFZ (B2005) Environment of Zhejiang 2024.11.17
Province
Emergency Management
3 Work Safety License (ZJ)WHAXZZ (2019)-B-1448 Department of Zhejiang 2025.01.03
Province
Shengyuan Chemical Fiber: Pollutant Discharge Permit: from November 6, 2021 to November 5, 2026,
Certificate No.: 91330109754409144F001P.
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Industry emission standards and specific situations of pollutant emissions involved in production and operation activities
Types of Names of
main main Number Pollutant Total
Company or Distribution Total
pollutants pollutants Discharge of Emission discharge certified Excessive
Subsidiary of discharge emissions
and and method discharge concentration/intensity standards in emissions emissions
Name outlets (t/a)
particular particular outlets execution (t/y)
pollutants pollutants
Rongsheng Sulfur
Waste gas Organized 2 furnace area 7.189mg/Nm3 50mg/Nm3 8.59 121.93 None
Petrochemical dioxide
Rongsheng
Waste gas Nitric oxide Organized 2 furnace area 49.717mg/Nm3 150mg/Nm3 62.08 102.59 None
Petrochemical
GB31570
Particulate Discharge Mean: 0.64 mg/m3
ZPC Waste gas 58 In the factory GB31571 78.4895 1565.64 None
matter after treatment Range: 0-18.25mg/m3
GB31572
GB31570
Sulfur Discharge Mean: 2.69 mg/m3
ZPC Waste gas 89 In the factory GB31571 308.6776 2750.8 None
dioxide after treatment Range: 0.12- 24.72 mg/m3
GB31572
GB31570
Discharge Mean: 29.93mg/m3
ZPC Waste gas Nitric oxide 91 In the factory GB31571 3376.0339 7078.45 None
after treatment Range: 0.20-110.91mg/m3
GB31572
GB31570
Discharge
ZPC Wastewater COD 1 In the factory 26.2mg/L GB31571 328.01 411.77 None
after treatment
GB31572
GB31570
Ammonia Discharge
ZPC Wastewater 1 In the factory 0.38mg/L GB31571 4.82 42.08 None
nitrogen after treatment
GB31572
Yushan Particulate Discharge Mean: 5.04mg/m3 DB332147
Waste gas 7 In the factory 33.8061 113.46 None
Petrochemical matter after treatment Range: 0.30- 18.25 mg/m3 GB18484
Yushan Sulfur Discharge Mean: 5.66mg/m3 DB332147
Waste gas 7 In the factory 90.0691 847.631 None
Petrochemical dioxide after treatment Range: 1.38- 19.23 mg/m3 GB18484
Rongsheng
Waste gas Smoke dust Organized 2 furnace area 3.0587mg/Nm3 20mg/Nm3 4.03 21 None
Petrochemical
Rongsheng Wastewater Ammonia Under control 1 Factory gate 2.97mg/L 35mg/L 0.15 2.15 None
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Petrochemical nitrogen
Rongsheng
Wastewater COD Under control 1 Factory gate 45.83mg/L 500mg/L 2.25 30.7 None
Petrochemical
Zhongjin Sulfur Continuous GB13223
Waste gas 15 Whole factory 5.76mg/m3 123.46 251.76 None
Petrochemical dioxide blow-down GB31570
Zhongjin Continuous GB13223
Waste gas Nitric oxide 15 Whole factory 24.42mg/m3 523.15 1141.74 None
Petrochemical blow-down GB31570
Zhongjin Continuous GB13223
Waste gas Smoke dust 15 Whole factory 2.87mg/m3 61.38 216.44 None
Petrochemical blow-down GB31570
Chemical
Zhongjin Continuous
Wastewater oxygen 2 East side 65.95mg/L GB8978 71.74 469.03 None
Petrochemical blow-down
demand
Zhongjin Ammonia Continuous
Wastewater 2 East side 2.14mg/L GB8978 2.33 52.23 None
Petrochemical nitrogen blow-down
Northwest
Chemical
corner and
Yisheng Dahua Wastewater oxygen Continuous 2 62.5 (mg/L) 300（mg/L） 585.284 1680 None
north side of
demand
the plant
Northwest
Ammonia corner and
Yisheng Dahua Wastewater Continuous 2 0.86（(mg/L) 30（mg/L） 8.02 182 None
nitrogen north side of
the plant
Southeast
Yisheng Dahua Waste gas Nitric oxide Continuous 3 corner of the 14.29 50（mg/m） 24.99 405 None
plant
Southeast
Sulfur
Yisheng Dahua Waste gas
dioxide
Continuous 3 corner of the 1.86 35（mg/m） 3.595 251 None
plant
Southeast
Yisheng Dahua Waste gas Smoke dust Continuous 3 corner of the 1.48 5（mg/m） 2.271 51 None
plant
GB13223-
Boiler/heat
Discharge 2011、
Hainan Yisheng Waste gas SO2 2 medium 53.83/98.31mg/m 301.85 679 None
after treatment GB13271-
furnace
2014
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GB13223-
Boiler/heat
Discharge 2011、
Hainan Yisheng Waste gas NOx 2 medium 69.71/261.22mg/m 723.64 989.9 None
after treatment GB13271-
furnace
2014
GB13223-
Boiler/heat
Discharge 2011、
Hainan Yisheng Waste gas Smoke dust 2 medium 9.34/6.51mg/m 28.97 232 None
after treatment GB13271-
furnace
2014
GB31571-
Discharge 2015、
Hainan Yisheng Wastewater COD 1 Sewage station 30.68mg/L 126.83 236.15 None
after treatment GB31572-
2015
GB31571-
Ammonia Discharge 2015、
Hainan Yisheng Wastewater 1 Sewage station 0.19mg/L 0.74 17.7 None
nitrogen after treatment GB31572-
2015
Zhejiang Discharge GB31571-
Wastewater COD 1 Sewage station 50.38mg/L 477.9 1039.84 None
Yisheng after treatment 2015
Zhejiang Ammonia Discharge GB31571-
Wastewater 1 Sewage station 0.21mg/L 1.98 17.35 None
Yisheng nitrogen after treatment 2015
Zhejiang Discharge DB33/2147-
Waste gas SO2 2 Boiler island 4.82mg/m 24.27 197.45 None
Yisheng after treatment 2018
Zhejiang Discharge DB33/2147-
Waste gas NOX 2 Boiler island 17.7mg/m 76.57 859.17 None
Yisheng after treatment 2018
Zhejiang Particulate Discharge DB33/2147-
Waste gas 2 Boiler island 1.8mg/m 9.19 426.11 None
Yisheng matter after treatment 2018
Shengyuan Sulfur
Waste gas Organized 2 furnace area 2.41mg/Nm3 50mg/Nm3 4.06 17.38 None
Chemical Fiber dioxide
Shengyuan
Waste gas Nitric oxide Organized 2 furnace area 19.88mg/Nm3 150mg/Nm3 32.59 52.15 None
Chemical Fiber
Shengyuan
Waste gas Smoke dust Organized 2 furnace area 1.13mg/Nm3 20mg/Nm3 2.05 8.74 None
Chemical Fiber
Shengyuan Ammonia
Wastewater Under control 1 Factory gate 2.97mg/L 35mg/L 0.15 1.3 None
Chemical Fiber nitrogen
Shengyuan
Wastewater COD Under control 1 Factory gate 45.83mg/L 500mg/L 2.25 2.74 None
Chemical Fiber
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Treatment of pollutants
Rongsheng Petrochemical: The company began to construct the ultra-clean desulfurization tower and flue
gas desulfurization and dust removal device in March 2016, which was put into operation in September 2016. At
present, the device is in good operation and can meet the flue gas emission standard of Xiaoshan District.
ZPC: The prevention and control measures for exhaust gas, wastewater, solid waste, and noise are strictly
designed, constructed, and put into use simultaneously with the main equipment in accordance with the
requirements of environmental impact assessment. Currently, the operation is in good condition. According to
other rectification requirements proposed by the environmental protection department, some pollution prevention
and control facilities have been added, further improving the environmental protection management level of the
device.
Zhongjin Petrochemical: The prevention and control measures for exhaust gas, wastewater, solid waste, and
noise are designed, constructed, and put into use simultaneously with the main device according to the
requirements of the environmental impact assessment. The operation is now in good condition.
Yisheng Dahua: The prevention and control measures for waste gas, waste water, solid waste and noise are
designed, constructed and put into use at the same time as the main device in strict accordance with the
requirements of environmental impact assessment. Now the operation is in good condition and all pollutants are
discharged up to standard. At the same time, according to the rectification requirements proposed by the
ecological and environmental protection department, new environmental governance facilities have been added,
further improving the level of environmental governance.
Hainan Yisheng: The prevention and control measures for waste gas, waste water, solid waste and noise are
designed, constructed and put into operation at the same time as the main device in strict accordance with the
requirements of environmental impact assessment, and the operation is in good condition now. According to other
rectification requirements proposed by the environmental protection department, some pollution prevention and
control facilities have been added, further improving the environmental protection management level of the device.
Zhejiang Yisheng: The prevention and control measures for waste gas, waste water, solid waste and noise are
designed, constructed and put into use at the same time as the main device in strict accordance with the
requirements of environmental impact assessment, and the operation is in good condition now. According to other
rectification requirements proposed by the environmental protection department, some pollution prevention and
control facilities have been added, further improving the environmental protection management level of the device.
Shengyuan Chemical Fiber: Zhejiang Shengyuan Chemical Fiber Co., Ltd. began to construct the ultra-clean
desulfurization tower and flue gas desulfurization and dust removal device in March 2016, which was put into
operation in September 2016. At present, the device is in good operation and can meet the flue gas emission
standard of Xiaoshan District.
Emergency response plans for paroxysmal environment events
Rongsheng Petrochemical: The Emergency Response Plan for Paroxysmal Environment Events of
Rongsheng Petrochemical Co., Ltd. has been prepared and presented to Xiaoshan District Ecological and
Environmental Protection Bureau for filing.
ZPC: The Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Petroleum &
Chemical Co., Ltd. has been filed with the Daishan Branch of Zhoushan Ecological Environment Bureau.
Zhongjin Petrochemical: The Emergency Response Plan for Paroxysmal Environment Events of Ningbo
Zhongjin Petrochemical Co., Ltd. has been revised and reviewed in March 2022 and presented to the local
environmental protection department, with the filing number 330211-2022-019-H.
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Yisheng Dahua: The Emergency Response Plan for Paroxysmal Environment Events of Yisheng Dahua
Petrochemical Co., Ltd. was revised, reviewed and filed with the local environmental protection department in
April 2020, with the filing number 210213W2020001-H.
Hainan Yisheng: The Emergency Response Plan for Paroxysmal Environment Events of Hainan Yisheng
Petrochemical Co., Ltd. has been filed with the local environmental protection department.
Zhejiang Yisheng: The Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Yisheng
Petrochemical Co., Ltd has been presented to the local environmental protection department.
Shengyuan Chemical Fiber Co., Ltd.: The Emergency Response Plan for Paroxysmal Environment Events of
Zhejiang Shengyuan Chemical Fiber Co., Ltd. has been presented to Xiaoshan District Ecological and
Environmental Protection Bureau.
Environmental self-monitoring scheme
The Company and its subsidiaries strictly abide by the environmental protection laws, regulations and
relevant regulations of the state and local governments. The Company has established an environmental self-
monitoring scheme to ensure that all pollutants are discharged and disposed of in strict accordance with the
requirements of laws and regulations. The self-monitoring scheme is disclosed in the pollution source monitoring
data management system. The Company carries out pollution source monitoring in strict accordance with the
monitoring scheme to ensure that all pollutants are discharged in strict accordance with the requirements of laws
and regulations, and entrusts a qualified third-party monitoring agency to carry out monitoring on a regular basis.
Investment in environmental governance and protection and payment of environmental protection tax
The Company's investment in environmental governance and protection in 2022 was RMB 875.3903757
million.
Measures were taken to reduce carbon emission and their effects during the reporting period
(1) System construction
ZPC and some other subsidiaries have established carbon emission management groups, which are
responsible for the overall oversight of the Company's carbon emission reduction, carbon asset management, and
carbon emission trading, and coordinating with other relevant departments to advance the cause.
(2) Carbon emission verification
ZPC, Ningbo Zhongjin Petrochemical, and some other subsidiaries have made steady progress in carbon
verification. With a thorough investigation of the Company's carbon emissions, they establish normalized data
statistics and audit mechanism, and introduce third-party verification agencies to ensure data accuracy.
(3) Risk management
The Company has carried out comprehensive risk investigations and formulated emergency plans for
extreme weather caused by climate change (such as typhoons, extreme cold, extreme heat, and floods).
Emergency drills are also carried out on a regular basis to improve employees' risk response capabilities.
(4) Energy conservation publicity
During the reporting period, in response to the national call for energy conservation and emission reduction,
the Company and its subsidiaries carried out various energy conservation publicity campaigns to promote the
Company to transform into a resource-saving and environment-friendly enterprise and strive to achieve the goals
of peaking carbon dioxide emissions and carbon neutrality as soon as possible.
(5) Technological innovation
The Company actively promotes the development mode of circular economy, recycles the high-concentration
carbon dioxide produced by EO/EG (ethylene oxide/ethylene glycol) plant as the raw material of DMC (dimethyl
carbonate)/polycarbonate plant, and effectively reduces carbon emissions.
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ZPC participated in the formulation of the group standard of Carbon Emission Benchmark for the Petroleum
Refining Industry organized by the Environmental Engineering Assessment Center of the Ministry of Ecology and
Environment, and cooperated in providing basic data on carbon emission research for the new integrated refining
and chemical industry, crude oil processing technology processes, and device design parameters. Currently, the
group standard has been successfully released and has begun to be implemented.
The energy structure of the company is accelerating the transformation to a low-carbon and clean direction.
In 2022, ZPC and Xiangshan Datang New Energy Co., Ltd. completed the first green electricity transaction,
which involved photovoltaic new energy green power with a trading capacity of 35,000 MWh. In 2023, Zhongjin
Petrochemical and Yongsheng Technology plan to purchase 5,000 MWh per month, totaling 120,000 MWh of
green electricity for the whole year. In the future, the Company will continue to expand the trading of renewable
energy power, including wind power, photovoltaic power and hydropower, continue to expand the trading objects,
promote the allocation of green power resources on a larger scale, and develop a new power trading strategy that
combines traditional and green power, to safeguard the sustainable development of the company.
Other environmental information that should be disclosed
Other environmental information that should be disclosed has been disclosed as required.
Other environmental protection-related information
The Company and its subsidiaries attach great importance to environmental protection and make major
decisions on environmental protection periodically or irregularly. The Company has established a Health, Safety
and Environment (HSE) Management Committee to comprehensively supervise and manage the Company's HSE
issues. Each subsidiary has a full-time environmental protection department responsible for daily comprehensive
management, supervision and inspection. To understand the dynamic situation of pollution, the Company has
established a strict monitoring system and entrusted the environmental management and monitoring department to
monitor the water, gas, sound and slag of the whole plant.
In August 2022, ZPC 3# Ethylene and its downstream chemical plant project applied for a pollutant
discharge permit.
In 2022, ZPC completed the environmental protection completion acceptance of four projects, including:40
million tons/year refining and chemical integration project (environmental protection acceptance shall be carried
out after completion of Phase II project), loading and unloading facilities reconstruction project of the liquid
chemical wharf (Phase I), 8#~12# berth project of the liquid chemical wharf (Phase II), Mamu crude oil depot
project (1# tank group, 2# tank group and 1603 storage tank), totaling 4 projects.
Ⅱ. Social responsibility information
The Company actively performs its social responsibility. For the full text of the 2022 Rongsheng
Petrochemical Co., LTD. Social Responsibility Report published on April 20, 2023, please visit
www.cninfo.com.cn.
The Company shall comply with the disclosure requirements of the chemical industry in the Self-
regulatory Guidelines for the Companies Listed on the Shenzhen Stock Exchange No. 3 - Industrial Information
Disclosure.
The Company abides by relevant state and local laws and regulations, including the Work Safety Law of the
People's Republic of China and the Work Safety Regulations of Zhejiang Province. The Company has developed
and improved a number of internal work safety rules and operational procedures, including the Management
Regulations on Work Safety and Environmental Protection, the Management Regulations on Lifting Operation
Safety, the Rules for the Implementation of Safety Training and Education Management, and the Fire
Emergency Plan of Rongsheng Petrochemical. The Company comprehensively promotes the standardization of
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work safety in all subsidiaries and has established a work safety management system and maintained its
effectiveness, ensuring work safety in all aspects of production and operation. By the end of the reporting period,
Rongsheng Petrochemical had received the Grade-3 work safety standardization certificate. During the
reporting period, no work-related deaths occurred.
The Company adheres to two principles, that the "person in charge takes the responsibility" and that "safety
is the foundation of production and business." The Company strengthens the work safety accountability system
for all employees and promote all subsidiaries and production units to build and strengthen a solid work safety
organizational structure, and assigns work safety responsibilities at all levels. The Company uses a combination of
rewards and penalties to encourage employees to strictly assure their primary responsibility in their position to
ensure work safety.
III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
The Company continued to share development achievements with society. The RMB 100 million worth of
fund (contributed by installment) for the Charity Federation in Xiaoshan District has been increased to RMB 130
million to carry out various social assistance activities such as "poverty relief, education assistance, medical
assistance, elderly care, disabled assistance, orphans care and disaster relief". In addition, the Company also
contributes to the construction of a harmonious and beautiful society in many fields every year, such as education
assistance, poverty alleviation, medical assistance and care for needy groups.
(1) Education assistance: The Company has set up the Rongsheng Education Reward Fund, which awards
about RMB 1.5 million every year to teachers and students in Yinong, and set up the Xinjiang Aqsu Education
Fund with an investment of RMB 20 million (all contributed in 10 years) to assist the cause of education in Aqsu.
The ZPC Daishan Education Fund has been established, with an investment of RMB 200 million (RMB 10
million will be withdrawn in 2022), which will be used for funding outstanding students and teachers, poor
students, talent introduction and scientific research achievement incentives.
(2) Poverty relief: The Company pairs up with Tonglu's Eshan Township and invests RMB 200,000 every
year to support local social development. The Company carries out the aid plan for Xinjiang and Tibet, RMB 3
million will be invested to provide local medical resources within 3 years from 2022.
(3) Medical assistance: The Company has established the Rongsheng Health Care Fund to assist families or
individuals hit by serious illnesses in Yinong Town. The Company donated an ambulance to Yinong Town Health
Center and paid to invite experts and famous doctors to Yinong Town to provide clinical consultations.
(4) Care for needy groups: The Company has set up the Hangzhou Police Care Fund, with an annual
contribution of RMB 500,000 to support the police and auxiliary police in difficulties.
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Section VI Important Matters
I. Fulfillment of Commitments
1. The commitments performed by the actual controllers, shareholders, related parties, acquirers, the Company, and other relevant parties to commitments
during the reporting period, and the commitments not performed by the end of the reporting period
Time of
Term of
Cause of Commitment Commitment Party Commitment Type Content of Commitment Commit Fulfillment
Commitment
ment
Share reform commitment N/A N/A N/A N/A N/A
Commitments stated in the
Report of Acquisition or Equity N/A N/A N/A N/A N/A
Change Report
Commitments made in assets
N/A N/A N/A N/A N/A
reorganization
Directors Li Shuirong and Li Yongqing and Supervisor Li
Guoqing promised that during their term of office, they
would not transfer shares they held (including directly and Term of
Directors and Novemb
Commitment made during IPO Commitment made indirectly) in the issuer of more than 25% of the total shares commitment for Commitment
supervisors of the er 2,
or re-financing during IPO held (including directly and indirectly) by them in the issuer share lock-up is s honored
Company 2010
every year. Within half a year after resignation, they would 36 months
not transfer shares directly or indirectly held by them in the
issuer.
Equity incentive commitment N/A N/A N/A N/A N/A
Zhejiang Rongsheng Holding Group Co., Ltd., the
controlling shareholder of the Company, signed the Non-
competition Agreement with the Company and promised not
to compete with the Company in the same industry. Li Novemb
Other commitments to minority Shareholders before Commitment made Shuirong, the de facto controller and the largest natural Commitment
er 2, Long term
shareholders of the Company issuance during IPO person shareholder of the Company, and other shareholders, s honored
2010
including Li Yongqing, Li Guoqing, Ni Xincai, Xu Yuejuan
and Zhao Guanlong, respectively issued the Letter of
Commitment on Avoiding Horizontal Competition and
promised not to compete with the company in the same
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industry.
Other commitments N/A N/A N/A N/A N/A
Whether the commitments are
Yes
performed on time
If the commitments have not
been fulfilled after the
deadline, the specific reasons
for the failure to complete the N/A
performance and the work plan
for the next step should be
explained in details
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2. Company statement on meeting original profit forecasts for assets or projects and the reasons therefore,
where such profit forecasts have been made and the reporting period falls within the profit forecast period
□ Applicable Not applicable
II. Non-operating Occupation of Funds of the Listed Company by the Controlling
Shareholder and Other Related Parties
There was no non-operating occupation of funds of the listed company by the controlling shareholder and other
related parties during the reporting period.
III. Illegal External Guarantee
There is no illegal external guarantee during the reporting period.
IV. Explanation of the Board of Directors on the relevant situation of the latest issue of the
“Non-standard Audit Report”
□ Applicable Not applicable
V. Explanation of the Board of Directors, the Board of Supervisors and the Independent
Directors (if any) on the “Non-standard Audit Report” for the reporting period issued by the
accounting firm
□ Applicable Not applicable
VI. Explanation of Changes in Accounting Policies, Accounting Estimates or Correction of
Major Accounting Errors Compared with the Financial Report of the Previous Year
The Company has implemented the provisions of Interpretation No.15 of Accounting Standards for Business
Enterprises issued by the Ministry of Finance on the "accounting treatment of external sales of products or by-
products produced by enterprises before the fixed assets reach the intended usable state or during the research and
development process" since January 1, 2022, and the trial operation occurred between the beginning of the earliest
period presented in the financial statements for the first time to January 1, 2022.
VII. Explanation of Changes in the Scope of Consolidated Statements Compared with the
Financial Report of the Previous Year
Acquisition and disposal methods during the reporting
Company name
period
Ningbo Rongxincheng Trading Co., Ltd. New establishment
Rongsheng New Materials (Zhoushan) Co., Ltd. New establishment
Rongsheng New Materials (Taizhou) Co., Ltd. New establishment
ZPC (Zhejiang Free Trade Zone) Green Petrochemical Research
New establishment
Institute Co., Ltd.
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Yisheng New Materials Trading Co., Ltd. New establishment
Zhoushan ZPC Sales Co., Ltd. New establishment
Zhejiang FreeTrade Zone Rongxin Trade Co., Ltd. Cancellation
Rongxiang (Shanghai) Chemical Co., Ltd. Cancellation
VIII. Appointment and Dismissal of Accounting Firm
The accounting firm employed currently
Pan-China Certified Public Accountants
Name of domestic accounting firm
(Special General Partnership)
Consecutive audit services year of domestic accounting firm 17 years.
Remuneration of domestic accounting firm (RMB 10,000) 600
Name of the certified public accountant of a domestic accounting firm Jia Chuan, Xu Haihong
Consecutive audit services year of the certified public accountant of a
3 years, 2 years
domestic accounting firm
Name of the overseas accounting firm (if any) None
Continuous years of audit services provided by overseas accounting firms
None
(if any)
Name of Certified Public Accountant of Overseas Accounting Firm (if any) None
Continuous years of audit services provided by certified public accountants
None
of overseas accounting firms (if any)
IX. Delisting after the disclosure of the Annual Report
□ Applicable Not applicable
X. Matters related to bankruptcy and reorganization
The Company did not have any matters related to bankruptcy or reorganization during the reporting period.
XI. Major litigation and arbitration matters
The Company had no major litigation and arbitration during the reporting period.
XII. Punishment and rectification
There were no penalties or rectifications during the reporting period of the Company.
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XIV. Major Related Transactions
1. Related party transactions related to daily operations
Amount Settlemen Available
Type of Contents Pricing Price of Proportio Trading
of related Above the t of market
related of related principles related n to limit
Related Relatio party approved related price for Date of
party party of related party similar approved Disclosure index
party nship transactio limit or party similar disclosure
transacti transactio party transactio transactio (RMB
n (RMB not transactio transactio
on n transaction n n amount 10,000)
10,000) n n
Zhejiang Coal, low- Banker's http://www.cninfo.com.cn/new/dis
Rongsheng Parent value acceptance closure/detail?stockCode=002493
Purchase Market Market 1,132,49 1,100,00 Market April 26,
Holding compan
of goods
consumpti
price price
59.59% No bill, spot
price
&announcementId=1213105269&
Group Co., y on goods, 7.74 0 exchange, 2022
orgId=9900015502&announcemen
Ltd. etc. etc. tTime=2022-04-26
EG, http://www.cninfo.com.cn/new/dis
Zhejiang Banker's
Associa petroleum closure/detail?stockCode=002493
Kunsheng acceptance April 26,
ted Sales of benzene, Market Market 1,630,275. Market
Petrochemi
enterpri goods petroleum price price 96
14.32% 2,200,000 No bill, spot
price
&announcementId=1213105269&
cal Co., exchange, 2022
se p-xylene, orgId=9900015502&announcemen
Ltd. etc. tTime=2022-04-26
etc.
Zhejiang Banker's http://www.cninfo.com.cn/new/dis
Associa closure/detail?stockCode=002493
Yisheng Xylene, 541,975. acceptance April 26,
ted Sales of Market Market Market
Petrochemi
enterpri goods
m-xylene,
price price 3.30% 600,000 No bill, spot
price &announcementId=1213105269&
cal Co., PTA, etc. 18 exchange, 2022
se orgId=9900015502&announcemen
Ltd. etc. tTime=2022-04-26
3,304,74 3,900,00
Total -- -- -- -- -- -- -- --
8.88 0
Details of return of large sales N/A
Actual performance during the reporting period
where the total amount of daily related party
None
transactions to occur in the current period is
estimated by category (if any)
Reason for substantial differences between the
transaction price and market reference price (if N/A
applicable)
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2. Related party transactions arising from the acquisition and sale of assets or equity
The Company had no connected transactions related to the acquisition or sales of assets or equity during the
reporting period.
3. Related-party transactions for outward joint investment
The Company had no connected transactions related to joint outward investment during the reporting period.
4. Connected transactions on credit and debt
The Company had no connected transactions on credit and debt during the reporting period.
5. Transactions with financial companies with associated relationships
There are no deposits, loans, credits or other financial operations between the Company and the related finance
companies, and the related party.
6. Transactions between the financial companies controlled by the company and related parties
There are no deposits, loans, credits or other financial operations between the finance companies controlled by the
Company and the related party.
7. Other major related party transactions
There were no other major connected transactions during the reporting period.
XV. Material Contracts and Their Performance
1. Status of trusteeship, contracting and leasing matters
(1) Entrustment
The Company had no entrustment during the reporting period.
(2) Contracting
There was no contracting during the reporting period.
(3) Lease
There was no leasing during the reporting period.
2. Major guarantee
Unit: RMB 10,000
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Guarantees of the Company to its subsidiaries
Total limits of guarantees to Total balance of guarantees actually
subsidiaries approved at the end 11,640,000 provided to subsidiaries at the end of 6,871,116.79
of the reporting period (B3) the reporting period (B4)
Guarantees provided by subsidiaries to subsidiaries
Total limits of guarantees to Total balance of guarantees actually
subsidiaries approved at the end 162,000 provided to subsidiaries at the end of 32,815.78
of the reporting period (C3) the reporting period (C4)
Total amount of guarantees of the Company (Including the above three mentioned guarantees)
Total limits of guarantees Total balance of guarantees actually
approved at the end of the 11,802,000 provided at the end of the reporting 6,903,932.56
reporting period (A3+B3+C3) period (A4+B4+C4)
Proportion of total amount of guarantees (i.e.
146.08%
A4+B4+C4) in net assets of the Company
XVI. Explanation of other major matters
(1) Overview of the correction of errors in the previous period
The Company is mainly engaged in R&D, production and sales of petrochemical and polyester-related
products. Over the years, it has formed a complete upstream and downstream industrial chain of crude oil-
aromatics (PX), olefin-purified terephthalic acid (PTA), ethylene glycol (MEG)-polyester (chips, bottle chips,
films)-spinning (POY, FDY)-texturing (DTY). On the premise of guaranteeing the sales of its own products and
the production and use of raw materials, the Company, in combination with the market situation and actual
business demand, chooses the opportunity to carry out a small amount of self-operated trade related to the
production of its own products, mainly PTA and crude oil.
According to the new revenue standards, the enterprise shall recognize the income upon fulfilment of its
performance obligations in the contract, namely when the customer obtains control over relevant goods. To obtain
control over relevant goods means the ability to direct the use of such goods and to receive almost all economic
benefits. If the enterprise is able to control the goods before transferring the goods to customers, the enterprise is
the main responsible person, and revenue is recognized according to the total amount of consideration received or
receivable; Otherwise, the enterprise is the agent, and shall recognize revenue based on the commission or
handling fee expected to be taken. Such commission or fee shall be the balance of the total received or receivable
consideration net of the amount to be paid to other related parties, or the specified amount or an amount calculated
at a specified percentage.
When determining whether a company has control over a product transferred to a customer, it should not be
limited to the legal form of the contract, but should comprehensively consider all relevant facts and circumstances,
including: (1) the company bears the primary responsibility for transferring the product to the customer; (2) The
enterprise bears the inventory risk of the goods before or after the transfer; (3) The enterprise shall have the right
to independently determine the price of the traded goods; (4) Other relevant facts and circumstances.
Prior to this verification, the company believed that in the process of PTA and crude oil trading, the company
independently selected customers and suppliers and had the right to negotiate and determine the price of the
traded goods. It also assumed the inventory risk of the goods before or after the transfer, and the relevant business
income was recognized using the total amount method.
During this verification process, the company reorganized its self-operated trade business and found that
some business contracts did not substantially transfer control of goods during the actual transaction process.
Therefore, in order to make the accounting treatment of related matters more in line with the requirements of the
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new income standards, the involved businesses are presented in the financial statements using the net amount
method. At the same time, the non-standard part shall be offset and presented. Related details are given as below:
2020 2021
Item Amount (RMB Amount (RMB Notes
Proportion Proportion
10,000) 10,000)
The recognition of
trade business income
is not standardized
The specific business between
PTA trade 239,322.98 2.23% 16,342.92 0.09% different entities is essentially of
the same trade chain
Accounting treatment
is not standard
For the same shipment of goods,
Crude oil trade 123,156.74 1.15% 553,032.21 3.02% they are sold for logistics needs
and then re-purchased
Trade conducted with the same
PTA trade 170,154.78 1.59% 172,954.74 0.94% entity in the form of warehouse
receipts at the same time
The Decision on Issuing Warning Letters to Rongsheng Petrochemical Co., Ltd. and Related Personnel
issued by the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission after verification of the
administrative regulatory measures issued by the company ([2023] No. 5).
(2) Impact of error correction on the Company
The operating income of the Company for 2020 and 2021 was RMB 107,264.9931 million and RMB
183,074.9303 million, respectively. The amount of the aforementioned misstatement is not sufficient to affect
financial statement users to make correct judgments on the company's financial condition, operating results, and
cash flow, so this misstatement is considered an insignificant prior period error. According to the Accounting
Standards for Business Enterprises, for insignificant errors in the previous period, the enterprise does not need to
adjust the opening balance of relevant items in the financial statements, but should adjust the relevant items that
are the same in the current period and the previous period. Therefore, the company did not retroactively restate the
financial statements for 2020 and 2021, and adjusted the above errors in the financial statements for 2022. The
corresponding reduction in operating income and operating costs for 2022 was RMB 12,749.6437 million, which
had no impact on the net profit for 2022.
The comparison of relevant items in the 2022 consolidated financial statements before and after
adjustment is as follows:
Unit: RMB 10,000
Amount before Amount after
Financial statement items affected Amount of adjustment
adjustment adjustment
Gross revenue 30,184,448.53 -1,274,964.37 28,909,484.16
Including: Operating income 30,184,448.53 -1,274,964.37 28,909,484.16
Total business cost 29,898,994.35 -1,274,964.37 28,624,029.98
Including: Operating cost 27,059,079.83 -1,274,964.37 25,784,115.46
Except for the above adjustments, there are no other adjustments to the consolidated financial statements and
the statement items of the parent company.
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Section VII Changes in Shares and Shareholders
I. Changes in shares
Unit: share
Increase or
Before the change After the change
decrease (+, -)
Number Proportion Subtotal Number Proportion
I. Shares subject to sales restrictions 627,243,750 6.19% 627,243,750 6.19%
1. State-owned shares
2. Shares held by state-owned legal
persons
3. Shares held by other domestic
627,243,750 6.19% 627,243,750 6.19%
capital
Including: Shares held by
0.00% 0.00%
domestic legal persons
Shares held by domestic natural
627,243,750 6.19% 627,243,750 6.19%
persons
4. Shares held by foreign investors 0.00% 0.00%
Including: Shares held by foreign
0.00% 0.00%
legal persons
Shares held by foreign natural
persons
II. Shares without sales restrictions 9,498,281,250 93.81% 9,498,281,250 93.81%
1. RMB ordinary shares 9,498,281,250 93.81% 9,498,281,250 93.81%
2. Domestically-listed foreign shares
3. Overseas-listed foreign shares
4. Others
III. Total shares 10,125,525,000 100.00% 10,125,525,000 100.00%
II. Shareholders and De Facto Controllers
1. Number of shareholders and shareholding of the Company
Unit: share
Total
Total
number of
number of Total number of
ordinary
preferred preferred
Total number shareholders
shareholder shareholders with
of ordinary at the end of
s with restored voting
shareholders the previous
69,232 173,536 restored 0 rights at the end 0
at the end of month
voting of the previous
the reporting before the
rights at the month before the
period disclosure
end of the disclosure date of
date of the
reporting the annual report
annual
period
report
Shareholdings of shareholders holding more than 5% of shares or top 10 shareholders
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Increase Pledge, marking
Number of and Number of Number of or freezing
Nature of shares held at decrease shares held shares held
Name of Shareholdin
shareholde the end of the during subject to without
shareholder g ratio Status of Num
r reporting the sales sales
period reporting restrictions restrictions shares ber
period
Zhejiang
Domestic
Rongsheng
non-state- 6,222,789,98
Holding 61.46% 6,222,789,981 0 0
owned legal 1
Group Co.,
person
Ltd.
Domestic
Li Shuirong natural 6.35% 643,275,000 0 482,456,250 160,818,750
person
Hong Kong
Securities
Foreign
Clearing 1.59% 160,735,704 22874700 0 160,735,704
legal person
Company
Limited
Domestic
Li Guoqing natural 0.95% 96,525,000 0 72,393,750 24,131,250
person
Domestic
Xu Yuejuan natural 0.95% 96,525,000 0 0 96,525,000
person
Domestic
Li Yongqing natural 0.95% 96,525,000 0 72,393,750 24,131,250
person
China
Construction
Bank Co.,
Ltd. - GF
Technology
Others 0.72% 73,188,935 0 0 73,188,935
Pioneer
Hybrid
Securities
Investment
Fund
Horizon Asset
- Huaneng
Trust Jiayue
No. 7 Single
Fund Trust -
Others 0.60% 60,948,287 -4395600 0 60,948,287
Horizon Asset
Huixin No. 43
Single Asset
Management
Plan
Shanghai
Pudong
Development
Bank Co.,
Ltd. - GF -
High-End Others 0.49% 49,615,954 0 49,615,954
48811275
Manufacturin
g Stock
Sponsored
Securities
Investment
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Fund
Domestic
Ni Xincai natural 0.47% 47,925,000 0 0 47,925,000
person
Strategic investors or general
legal persons becoming the
Not applicable
top 10 shareholders due to
rights issues (if any)
Among the top 10 shareholders, Zhejiang Rongsheng Holding Group Co., Ltd. is the controlling
Explanation of the shareholder of the Company, Li Yongqing and Li Guoqing are nephews of Li Shuirong, Chairman of
relationship or concerted the Board of Directors of Zhejiang Rongsheng Holding Group Co., Ltd., Xu Yuejuan is sister-in-law
action among the above of Li Shuirong, and Ni Xincai is the brother-in-law of Li Shuirong, forming associated relationships.
shareholders In addition to the above associated relationships, the Company has no knowledge of whether other
shareholders are related to each other or act in concert.
Explanation of the above
shareholders on
Not applicable
delegating/receiving/waiving
voting rights
Special explanation of the
existence of a special
Among the top 10 shareholders, Rongsheng Petrochemical Co., Ltd. repurchased 283,142,652
repurchase account among
shares in the special securities account, accounting for 2.80% of the Company's total share capital.
the top 10 shareholders (if
any)
Shareholdings of the top 10 shareholders not subject to sales restrictions
Number of shares without Class of shares
Name of shareholder sales restrictions held at the
end of the reporting period Class of shares Number
RMB ordinary
Zhejiang Rongsheng Holding Group Co., Ltd. 6,222,789,981 6,222,789,981
shares
RMB ordinary
Li Shuirong 160,818,750 160,818,750
shares
RMB ordinary
Hong Kong Securities Clearing Company Limited 160,735,704 160,735,704
shares
RMB ordinary
Xu Yuejuan 96,525,000 96,525,000
shares
China Construction Bank Co., Ltd. - GF Technology RMB ordinary
73,188,935 73,188,935
Pioneer Hybrid Securities Investment Fund shares
Horizon Asset - Huaneng Trust Jiayue No. 7 Single Fund
RMB ordinary
Trust - Horizon Asset Huixin No. 43 Single Asset 60,948,287 60,948,287
shares
Management Plan
Shanghai Pudong Development Bank Co., Ltd. - GF High-
RMB ordinary
End Manufacturing Stock Sponsored Securities 49,615,954 49,615,954
shares
Investment Fund
RMB ordinary
Ni Xincai 47,925,000 47,925,000
shares
Industrial and Commercial Bank of China Co., Ltd. -
RMB ordinary
Guangfa Shuangqing Upgrade Hybrid Securities 46,972,360 46,972,360
shares
Investment Fund
China Minsheng Bank Co., Ltd. - GF Industry Best- RMB ordinary
43,990,558 43,990,558
Choice Three-Year Hybrid Securities Investment Fund shares
Explanation of the relationship or concerted action among Among the top 10 shareholders, Zhejiang Rongsheng Holding Group
the top 10 shareholders of outstanding shares without sales Co., Ltd. is the controlling shareholder of the Company, Xu Yuejuan is
restrictions and among the top 10 shareholders of the sister-in-law of Li Shuirong, Chairman of the Board of Directors of
outstanding shares without sales restrictions and the top 10 Zhejiang Rongsheng Holding Group Co., Ltd., and Ni Xincai is the
shareholders brother-in-law of Li Shuirong, forming associated relationships. In
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addition to the above associated relationships, the Company has no
knowledge of whether other shareholders are related to each other or
act in concert.
Zhejiang Rongsheng Holding Group Co., Ltd. holds 6,215,189,981
Explanation of the top 10 shareholders' participation in
shares through an ordinary account and 7,600,000 shares through a
securities margin trading (if any)
credit account.
Whether any of the top 10 shareholders of ordinary share and the top 10 shareholders of ordinary share not subject
to sales restrictions of the Company have any agreed repurchase trading during the reporting period?
The top 10 shareholders of ordinary share and the top 10 shareholders of ordinary share not subject to sales
restrictions did not conduct the agreed repurchase transaction during the reporting period
2. Controlling shareholders of the Company
Nature of controlling shareholder: natural person holding
Type of controlling shareholder: legal person
Name of Legal
Date of
controlling representative/pe Organization code Main business
establishment
shareholder rson-in-charge
Industrial investment, enterprise management
consulting, indoor and outdoor building decoration,
sales of chemical raw materials and products
(excluding dangerous chemicals and easily made
drugs), precious metals (excluding those under special
control), gold products, coal (no storage), metal
materials and products, steel, building materials, light
Zhejiang
textile raw materials and products, fuel oil (excluding
Rongsheng September 13,
Li Shuirong 9133000079338631XM finished oil), photovoltaic products, cement and
Holding Group 2006
products, wood and products, hardware and electrical
Co., Ltd.
appliances and daily necessities, computer software
development, information consulting services, and
import and export business. (Except for projects
prohibited or restricted by national laws and
regulations). (Business activities subject to the
approval shall be carried out upon approval by relevant
departments according to law.)
Equity of other domestic and
overseas listed companies in which
Zhejiang Rongsheng Holding Group Co., Ltd. has held 61.46% of shares of the Company and
controlling shareholders have
29.08% of shares of Ningbo United Group Co., Ltd., respectively as their de facto controller.
controlled and held shares during the
reporting period
Change of controlling shareholder during the reporting period
There was no change in the controlling shareholder of the Company during the reporting period.
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3. De facto controllers and persons acting in concert with the Company
Nature of de facto controller: domestic natural person
Type of de facto controller: natural person
Obtaining the right of
Name of the de facto Relationship with de facto
Nationality residence in other countries
controller controller
or regions or not
Li Shuirong Same person China No
Chairman of the Board of Directors of Zhejiang Rongsheng Holding Group Co., Ltd., Chairman of
Main occupation and
Ningbo United Group Co., Ltd., ViceChairman of Yibin Tianyuan Group Co., Ltd. and Chairman of the
position
Company.
Domestic and foreign As of the end of the reporting period, Mr. Li has held 63.523% of the shares of Zhejiang Rongsheng
listed companies under Holding Group Co., Ltd. as its de facto controller. Zhejiang Rongsheng Holding Group Co., Ltd. has
his control in the past held 61.46% of shares of the Company and 29.08% of shares of Ningbo United Group Co., Ltd.,
10 years respectively as their de facto controller.
Change of actual controller during the reporting period
There was no change in the actual controller of the Company during the reporting period.
Block diagram for the property and control relations between the Company and its actual controller
Li Shuirong
63.523%
Zhejiang Rongsheng Holding
6.35%
Group Co., Ltd.
61.46%
Rongsheng Petrochemical
Co., Ltd.
III. Specific implementation of share repurchase during the reporting period
Proportion of
the number of
Numbe
Proporti Proposed shares
Number of r of
Disclosure on to repurchase Proposed repurchased to
shares to be Repurchase shares
time of the total amount repurchase the underlying
repurchased purpose repurch
scheme share (RMB period shares involved
(shares) ased
capital 10,000) in the equity
(shares)
incentive plan
(if any)
45,454,500 RMB 1 billion Within 12 Convertible
March 16, shares - 0.45%- (inclusive) months from corporate 136,082,
0.00%
2022 90,909,100 0.90% and not more the date of bonds issued 746.00
shares (all than RMB 2 approval of this by listed
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inclusive) billion repurchase plan companies for
(inclusive) by the board of conversion
directors into stocks
Convertible
From the date corporate
of approval of bonds or
RMB 1 billion
50 million this repurchase employee
(inclusive)
shares-100 plan by the stock
August 5, 0.4938%- and not more 147,059,
million shares board of ownership 0.00%
2022 0.9876% than RMB 2 906.00
(both directors plans issued
billion
inclusive) by listed
(inclusive) Within 12 companies for
months conversion
into stocks
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Section VIII Preferred Shares
The Company had no preferred shares during the reporting period.
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Section IX Bonds
I. Enterprise Bond
The Company had no enterprise bond during the reporting period.
II. Corporate Bond
1. Basic information of corporate bond
Unit: RMB
Mode of
Bond Bond Issue Value Maturity Interest repayment of Trading
Name of bond Bond balance
date date date rate principal and venue
abbreviation code interest
The interest shall be
2020 Public accrued per year on
Offering of Green a simple interest
Corporate Bonds basis, instead of
to Eligible April April compound interest. Shenzhen
20 Rongsheng April 22,
Investors by 149087 21, 21, 1,000,000,000 3.86% The interest shall be Stock
G1 2024
Rongsheng 2020 2020 paid once a year, Exchange
Petrochemical and the last interest
Co., Ltd. (Grade shall be paid
1) together with the
principal.
The interest shall be
2020 Public accrued per year on
Offering of Green a simple interest
Corporate Bonds basis, instead of
to Eligible August August compound interest. Shenzhen
20 Rongsheng September
Investors by 149220 31, 31, 1,000,000,000 3.45% The interest shall be Stock
G2 2, 2024
Rongsheng 2020 2020 paid once a year, Exchange
Petrochemical and the last interest
Co., Ltd. (Grade shall be paid
2) together with the
principal.
Investor suitability arrangements (if any) Qualified institutional investor
Applicable transaction mechanism Competitive price transaction
Any risk of termination of listing and trading (if
None
any) or not and countermeasures
2. Trigger and implementation of issuer or investor option clauses and investor protection clauses
Type of
Implementation
clause
Bond of investor
Name of bond covered Option clause
abbreviation protection
under the
clause
bond
2020 Public Offering Option to According to Rongsheng Petrochemical's The
of Green Corporate adjust announcement on March 18, 2022, - The First implementation
Bonds to Eligible 20 coupon Indicative Announcement on the 2022 Coupon Rate conditions for
Investors by Rongsheng rate, put- Adjustment of Green Corporate Bonds (Phase 1) Issued the above clause
Rongsheng G1 back to Qualified Investors in 2020 by Rongsheng of investor
Petrochemical Co., option and Petrochemical Co., Ltd., Rongsheng Petrochemical has protection have
Ltd. (Grade 1) accelerated decided to lower the coupon rate of 20 Rongsheng G1 not been
settlement to 3.86% for the next two years (i.e. from April 22, triggered during
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clause 2022 to April 21, 2024). the reporting
period
The
Option to According to Rongsheng Petrochemical's
implementation
2020 Public Offering adjust announcement on August 3, 2022 - The First Indicative
conditions for
of Green Corporate coupon Announcement on the Implementation Measures for
the above clause
Bonds to Eligible 20 rate, put- Coupon Rate Adjustment and Investor Buyback of
of investor
Investors by Rongsheng back Green Corporate Bonds (Phase II) Issued to Qualified
protection have
Rongsheng G2 option and Investors in 2020 by Rongsheng Petrochemical Co.,
not been
Petrochemical Co., accelerated Ltd., Rongsheng Petrochemical has decided to lower the
triggered during
Ltd. (Grade 2) settlement coupon rate of 20 Rongsheng G2 to 3.45% for the two
the reporting
clause next years (September 2, 2022 to September 1, 2024).
period
3. Intermediaries
Name of bond Name of Name of signing Contacts of
Office address Contact number
projects intermediaries accountants intermediaries
Tower B, China
Resources
Pan-China Certified
20 Rongsheng G1 Building, Yu Jianan, Xu
Public Accountants
and 20 No.1366, Xiaofeng, Xu Zheng Qihua 0571-88216888
(Special General
Rongsheng G2 Qianjiang Road, Haihong, Xu Cheng
Partnership)
Shengcheng
District, Hangzhou
4. Utilization of funds raised
Unit: RMB
Consistent with the
Operation of a Rectification purpose, use plan
Name of bond Total amount Unused special account of illegal use of and other
Used amount
projects of raised funds amount for raised raised funds (if agreements
funds (if any) any) promised in the
prospectus or not
20 Rongsheng G1 1,000,000,000 1,000,000,000 0 Normal None Yes
20 Rongsheng G2 1,000,000,000 1,000,000,000 0 Normal None Yes
Raise funds for construction projects
As of the end of June 2020, the net funds raised by the bond "20 Rongsheng G1" had been used for the
construction of the refining-chemical integration project (40 million tons per year) of ZPC and to supplement
the working capital of the Company, and the raised funds had been used up. The use of funds raised by the bond
"20 Rongsheng G1" was consistent with the relevant commitments in the prospectus.
As of the end of 2020, the net funds raised by the bond "20 Rongsheng G2" had been used for the
construction of the refining-chemical integration project (40 million tons per year) of ZPC and to supplement the
working capital of the Company, and the raised funds had been used up. The use of funds raised by the bond "20
Rongsheng G2" was consistent with the relevant commitments in the prospectus.
5. Adjustment of credit rating results during the reporting period
□ Applicable Not applicable
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6. Implementation and changes of guarantee, debt repayment plan and other debt repayment security
measures during the reporting period and the impact on interests of bond investors
Bond abbreviation 20 Rongsheng G1
Substance of credit enhancement mechanism, debt repayment plan Establishing a special account for raised funds and a special
and other debt repayment security measures account for debt repayment
Bond guarantee None
Changes in credit enhancement mechanism, debt repayment plan
and other debt repayment security measures and the impact on None
interests of bondholders (if any)
Implementation of credit enhancement mechanism, debt repayment
The special account for raised funds and the special account
plan and other debt repayment security measures during the
for debt repayment operated as agreed in the prospectus
reporting period
Bond abbreviation 20 Rongsheng G2
Substance of credit enhancement mechanism, debt repayment plan Establishing a special account for raised funds and a special
and other debt repayment security measures account for debt repayment
Irrevocable guarantee for joint and several liabilities provided
Bond guarantee
by Zhejiang Rongsheng Holding Group Co., Ltd.
Changes in credit enhancement mechanism, debt repayment plan
and other debt repayment security measures and the impact on None
interests of bondholders (if any)
Implementation of credit enhancement mechanism, debt repayment
The special account for raised funds and the special account
plan and other debt repayment security measures during the
for debt repayment operated as agreed in the prospectus
reporting period
III. Debt financing instruments of non-financial enterprises
During the reporting period, the Company did not have any debt financing instruments of non-financial
enterprises.
IV. Convertible corporate bonds
The Company had no convertible bond during the reporting period.
V. Loss within the scope of the Consolidated Financial Statements during the reporting period
of the Company exceeding 10% of the net assets at the end of last year
□ Applicable Not applicable
VI. Overdue situation of interest-bearing debts other than bonds at the end of the reporting
period
□ Applicable Not applicable
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VII. Any violations of rules and regulations during the reporting period
□ Yes No
VIII. Key Accounting Data and Financial Indicators of the Company in Recent Two Years as
of the End of the Reporting Period
Unit: RMB 10,000
Increase or decrease at the
At the end of the reporting At the end of the previous end of the reporting period
Item
period year over the end of the previous
year
Current ratio 73.60% 70.32% 4.67%
liability-asset ratio 73.20% 71.60% 1.60%
Quick ratio 23.07% 21.38% 7.93%
Increase or decrease in the
In the same period of the reporting period over the
In the reporting period
previous year same period of the previous
year
Net profit net of non-recurring
201,161.33 1,284,418.70 -84.34%
gain and loss
EBITDA total debt ratio 11.69% 25.94% -14.25%
Interest coverage ratio 1.35 5.06 -73.35%
Cash interest coverage ratio 4.18 6.39 -34.58%
EBITDA interest coverage
2.85 6.04 -52.91%
ratio
Loan repayment rate 100.00% 100.00% 0.00%
Interest cover ratio 100.00% 100.00% 0.00%
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Section X Financial Reports
I. Audit Report
Type of audit opinions Standard unqualified opinion
Signing date of audit report April 18, 2023
Pan-China Certified Public Accountants (Special
Name of auditor
General Partnership)
Reference No. of audit report TJS [2023] No. 3718
Name of certified public accountants Jia Chuan, Xu Haihong
Text of Audit Report
To all shareholders of Rongsheng Petrochemical Co., Ltd.,
I. Audit Opinions
We have audited the accompanying financial statements of Rongsheng Petrochemical Co., Ltd. (hereinafter
referred to as "Rongsheng Petrochemical"), which comprise the consolidated and parent company's balance sheets
as of December 31, 2022, consolidated and parent company's income statements, consolidated and parent
company's cash flow statements, and consolidated and parent company's statements of changes in owner's equity
for the year 2022, and the notes to relevant financial statements.
In our opinion, the attached financial statements are prepared in accordance with the Accounting Standards
for Business Enterprises in all material aspects, and fairly reflect Rongsheng Petrochemical's consolidated and the
parent company's financial positions as of December 31, 2022, as well as the consolidated and the parent
company's business results and cash flows for 2022.
II. Basis for Audit Opinions
We have performed our audit in accordance with the Auditing Standards for Certified Public Accountants
of China. The section "Responsibility of Certified Public Accountant for Auditing Financial Statements" herein
further elaborates our responsibilities under these standards. According to the Code of Professional Ethics for
Chinese Certified Public Accountants, we are independent of Rongsheng Petrochemical and have fulfilled other
responsibilities in terms of professional ethics. We believe that the audit evidence we obtained is sufficient and
appropriate to provide a basis for the audit opinions.
III. Key Audit Matters
Key audit matters are those we consider to be the most important for the auditing of financial statements
according to our professional judgment. Those matters are handled in the context that we audit the financial
statements as a whole and form an audit opinion. We do not express a separate opinion on these matters.
(1) Revenue recognition
1. Description of matters
See Notes III (XXII) and V (II) 1 to the financial statements for relevant information disclosure.
The operating income of Rongsheng Petrochemical Company mainly comes from the sales of refined oil
products, chemical products, PTA, polyester chips, polyester filaments and films. In this period, the operating
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income of Rongsheng Petrochemical Company was RMB 289,094.8416 million. According to the sales contract
between Rongsheng Petrochemical Company and its customers, the revenue of sales of goods by Rongsheng
Petrochemical Company is recognized when the customer obtains the control right of the relevant goods.
As operating revenue is one of the key performance indicators of Rongsheng Petrochemical Company, there
may be an inherent risk that the management of Rongsheng Petrochemical Company (hereinafter referred to as the
management) may achieve specific objectives or expectations through inappropriate revenue recognition. We,
therefore, identified revenue recognition as a key audit matter.
2. Audit response
Our audit procedures in relation to revenue recognition mainly include:
(1) Understanding key internal controls related to goodwill impairment, evaluating the design of these
controls to confirm whether they have been implemented, and testing the operational effectiveness of related
internal controls;
(2) Reviewing sales contracts to understand key contract terms or conditions and evaluating the
appropriateness of revenue recognition methods;
(3) Implementing analysis procedures for operating income and gross profit rate by month, product and
customer, identifying whether there is significant or abnormal fluctuation, and finding out the reasons for
fluctuation;
(4) For domestic sales revenue, check the supporting documents related to revenue recognition by sampling,
including sales contract, order, sales invoice, delivery order, logistics record and customer receipt; For export
income, obtain electronic port information and verify it with book records, and checking supporting documents
such as sales contract, export declaration form, freight bill of lading, sales invoice and shipping receipt record by
sampling;
(5) Implementing correspondence procedure for sales of major customers;
(6) Implementing a cut-off test on the operating income recognized before and after the balance sheet date to
evaluate whether the operating income is recognized in the appropriate period;
(7) Checking whether the information related to operating income has been properly presented in the
financial statements.
(2) Measurement of fixed assets and construction in progress
1. Description of matters
See Notes III (XV), III (XVI), III (XVII) and V (I) 11 and 12 to the financial statements for relevant
information disclosure.
As of December 31, 2022, the book value of fixed assets items shown in the financial statements of
Rongsheng Petrochemical Company was RMB 222,161,110,736.65, mainly including the machinery and
equipment used for the production of petroleum refining-chemical products, chemical products and the
appropriate plants constructed. Such fixed assets are recorded in the account as being ready for the intended use
and the depreciation is accrued by the straight-line method over the estimated service life.
As of December 31, 2022, the book balance of construction in progress shown in the financial statements of
Rongsheng Petrochemical was RMB 26,135,157,629.45. It is mainly 1.4 million tons of ethylene and downstream
chemical plants, public works and supporting facilities. The construction in progress of Rongsheng Petrochemical
is measured at the actual cost, including construction cost, installation cost, borrowing cost qualified for
capitalization and other necessary expenses incurred to make the construction in progress ready for intended use,
including engineering design, supervision, cost consultation and other expenses.
The Management's judgment on the following aspects will have an impact on the book value of fixed
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assets and construction in progress and the depreciation policy of fixed assets, including determination of
expenses qualified for capitalization, determination of the time points when the construction in progress is
transferred into fixed assets and when the depreciation gets started; and estimate of the useful economic life and
the residual value of appropriate fixed assets.
Evaluation of the book value of fixed assets and construction in progress involves significant Management
judgment and accounts for a large share in the consolidated financial statements. We determine the measurement
and identification of fixed assets and construction in progress as key audit matters.
2. Audit response
Our main audit procedures are as follows:
(1) Understanding the key internal controls related to fixed assets and construction in progress (including
estimated economic useful life and residual value), evaluating the design of these controls to confirm whether
they have been implemented and testing the operational effectiveness of relevant internal controls;
(2) Checking the new construction in progress by sampling, judging whether the above investment is
qualified for capitalization, conducting a spot check of the new construction and installation costs with the
significant amount this year, checking the relevant project contracts, and checking the actual payment amount
against the invoice and payment voucher;
(3) Obtaining the loan contract and reviewing the accuracy and completeness of the capitalized interest
confirmation in combination with the investment in construction in progress;
(4) Inspecting the construction site, learning about and evaluating the project progress, and judging
whether there is any significant deviation from the Company's book;
(5) Confirming the time point when construction in progress is carried forward to fixed assets, and confirm
the accuracy of such time point in combination with the on-site supervision and acceptance report of fixed
assets;
(6) Evaluating the reasonableness of the depreciation method of fixed assets and reviewing the
reasonableness of depreciation provision on this basis.
IV. Other Information
The Management of Rongsheng Petrochemical (hereinafter referred to as the Management) is responsible
for other information. Other information includes information covered in the annual report, but does not include
the financial statements and our audit reports.
Our audit opinions on the financial statements do not cover other information, nor do we issue any form of
authentication conclusion on other information.
In connection with our audit of the financial statements, our responsibility is to read other information. In
the process, we consider whether there are material inconsistencies or appear to be material misstatements with
the financial statements or what we have learned during the audit.
Based on the work that we have already done, if we determine that other information contains a material
misstatement, we are obliged to report truthfully. We have nothing to report in this regard.
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V. Responsibility of the Management and the Governance for Financial Statements
The Management is responsible for preparing the financial statements in accordance with the requirements
of Accounting Standards for Business Enterprises to achieve a fair presentation and designing, implementing
and maintaining internal control that is necessary to ensure that the financial statements are free from material
misstatements, whether due to frauds or errors.
In preparing the financial statements, the Management is responsible for assessing Rongsheng
Petrochemical's ability to continue as a going concern, disclosing matters related to going concern (if applicable)
and using the going concern basis of accounting unless the Management either intends to liquidate Rongsheng
Petrochemical or to cease its operations, or has no realistic alternative but to do so.
The Governance of Rongsheng Petrochemical (hereinafter referred to as the Governance) is responsible for
overseeing the financial reporting process of Rongsheng Petrochemical.
IV. Responsibilities of Certified Public Accountants for Auditing Financial Statements
Our goal is to obtain reasonable assurance as to whether there is no material misstatement in the financial
statements as a whole due to fraud or error, and to issue an audit report containing audit opinions. Reasonable
assurance is of a high level, but it is not a guarantee that an audit conducted in accordance with auditing
standards is always able to detect a material misstatement when it exists. Misstatements may be caused by fraud
or error, and are often considered significant if it is reasonably anticipated that the misstatements alone or in
aggregate may affect the economic decisions made by users of the financial statements on the basis of the
financial statements.
In the process of the audit performed in accordance with auditing standards, we have applied professional
judgments and maintained professional skepticism. Meanwhile, we also execute the following work:
(I) Identify and assess risks of material misstatement of financial statements due to frauds or errors, design
and implement audit procedures to address these risks, and obtain adequate and appropriate audit evidence as a
basis for expressing audit opinions. Since fraud may involve collusion, forgery, deliberate omission,
misrepresentation or overstepping internal control, the risk of failing to find material misstatements due to fraud
is higher than the risk of failing to find material misstatements due to error.
(Ⅱ) Understand internal control related to audit so as to design proper audit procedures.
(III) Evaluate the appropriateness of the accounting policy selected by the Management and the rationality
of making accounting estimates and relevant disclosures.
(IV) Draw conclusions on the appropriateness of the going concern assumption used by the Management.
In addition, based on the audit evidence obtained, a conclusion is drawn as to whether there is any material
uncertainty existing in the matters or situations that may lead to major doubts about the going concern ability of
Rongsheng Petrochemical. If we conclude that there is material uncertainty, the auditing standards require us to
draw the statement user's attention in the audit report to relevant disclosures in the financial statements; and if
the disclosure is inadequate, we shall give non-unqualified opinions. Our conclusion is made as per the
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information available as of the audit report date. However, future events or circumstances may prevent
Rongsheng Petrochemical from continuing as a going concern.
(V) We have evaluated the overall presentation, structure and contents of financial statements and assessed
whether the financial statements fairly reflected relevant transactions and matters.
(VI) We have obtained sufficient and appropriate audit evidence on the financial information of entities or
business activities of Rongsheng Petrochemical to express our opinions on the financial statements. We are
responsible for guiding, supervising and implementing the group audit and taking full responsibility for the
audit opinions.
We have communicated with the Governance on the planned audit scope, timing and major audit findings,
including the noteworthy deficiencies in internal control identified by us in the audit.
We also provide a statement to the Governors that we have complied with the professional ethics
requirements related to our independence and communicate with the Governors all relationships and other
matters that may reasonably be considered to affect our independence as well as relevant preventive measures
(if applicable).
From the matters on which we communicate with the Governors, we determine which matters are the most
important for the audit of the financial statements for the current period and thus constitute the key audit matters.
We describe these matters in our audit report, and unless laws and regulations prohibit the public disclosure of
these matters or in rare cases, if it is reasonably expected that the negative consequence of communicating
certain matters in the audit report will outweigh the benefits in the public interest, we determine that such
matters shall not be communicated in the audit report.
II. Financial Statements
The financial statement notes are represented in RMB.
1. Consolidated Balance Sheet
Prepared by: Rongsheng Petrochemical Co., Ltd.
December 31, 2022
Unit: RMB
Item December 31, 2022 January 1, 2022
Current assets:
Monetary funds 18,238,774,380.21 17,681,643,415.29
Settlement provision
Lending funds
Trading financial assets 188,283,362.49 345,151,994.32
Derivative financial assets
Notes receivable
Accounts receivable 7,128,011,047.03 5,411,114,000.05
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Receivables financing 187,298,909.35 357,547,507.32
Advance payment 2,558,120,124.99 3,670,682,160.81
Premium receivables
Reinsurance receivables
Reinsurance contract reserves
receivables
Other receivables 4,262,221,292.97 3,424,586,902.89
Including: Interest receivables
Dividends
434,500,000.00
receivable
Redemptory monetary capital for sale
Inventory 60,689,909,793.94 47,110,220,115.64
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 2,467,681,369.50 11,540,476,645.16
Total current assets 95,720,300,280.48 89,541,422,741.48
Non-current assets:
Loans and advances
Creditors investment
Other creditors investment
Long-term receivables
Long-term equity investment 8,733,329,806.35 7,590,869,411.21
Investment in other equity instruments
Other non-current financial assets
Investment property 10,667,020.60 10,938,466.60
Fixed assets 222,161,110,736.65 124,274,418,986.34
Construction in progress 26,135,157,629.45 108,671,656,611.87
Productive biological assets
Oil & gas assets
Right-of-use assets 225,606,768.34 253,078,428.01
Intangible assets 5,997,771,881.12 5,704,214,546.10
Development expenses
Goodwill
Long-term deferred expense 117,159.13 185,020.17
Deferred income tax assets 397,203,189.14 226,321,293.72
Other non-current assets 3,206,152,216.42 1,957,492,595.67
Total non-current assets 266,867,116,407.20 248,689,175,359.69
Total assets 362,587,416,687.68 338,230,598,101.17
Current liabilities:
Short-term borrowings 26,369,552,400.50 37,870,906,450.61
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Borrowings from the central bank
Borrowing funds
Trading financial liabilities 588,769,711.55 214,744,004.37
Derivative financial liabilities
Notes payable 3,408,800,462.03 2,486,446,489.85
Accounts payable 69,079,366,976.43 57,988,810,816.03
Advance collections
Contract liabilities 3,734,262,391.81 4,240,816,908.28
Financial assets sold for repurchase
Deposits from customers and interbank
Funds from securities trading agency
Funds from securities underwriting
agency
Payroll payable 1,022,711,102.12 912,271,936.49
Taxes payable 1,463,341,122.44 7,615,686,791.36
Other payables 3,472,604,671.47 2,102,611,949.60
Including: Interests payable
Dividends payable 108,000,000.00 187,500,000.00
Handling charges and commissions
payable
Reinsurance payable
Held-for-sale liabilities
Non-current liabilities due within one
20,461,387,778.93 13,376,297,922.08
year
Other non-current liabilities 458,588,848.28 532,865,110.32
Total current liabilities 130,059,385,465.56 127,341,458,378.99
Non-current liabilities:
Insurance contract reserves
Long-term borrowings 130,962,386,969.29 109,118,407,483.85
Bonds payable 2,034,827,122.23 2,042,929,924.77
Including: Preferred share
Perpetual bond
Lease liabilities 213,400,396.45 233,775,736.95
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income 195,662,553.73 213,751,341.57
Deferred income tax liabilities 1,955,971,401.12 3,233,271,803.98
Other non-current liabilities
Total non-current liabilities 135,362,248,442.82 114,842,136,291.12
Total liabilities 265,421,633,908.38 242,183,594,670.11
Owner’s equity:
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Share capital 10,125,525,000.00 10,125,525,000.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 10,822,594,513.39 10,820,095,850.58
Less: Treasury stock 3,978,202,364.65
Other comprehensive income 139,462,613.71 -12,469,066.84
Special reserves
Surplus reserves 886,470,394.72 712,695,666.11
Generic risk reserves
Undistributed profits 29,264,532,743.94 27,605,458,498.55
Total owner's equity attributable to the parent
47,260,382,901.11 49,251,305,948.40
company
Minority equity 49,905,399,878.19 46,795,697,482.66
Total owners' equity 97,165,782,779.30 96,047,003,431.06
Total liabilities and owner's equity 362,587,416,687.68 338,230,598,101.17
Legal representative: Li Shuirong Person in charge of accounting: Wang Yafang Person in charge of the accounting firm: Zhang Shaoying
2. Balance Sheet of the Parent Company
Unit: RMB
Item December 31, 2022 January 1, 2022
Current assets:
Monetary funds 710,893,292.35 566,119,525.78
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 70,794,193.95 204,047,317.74
Receivables financing 49,291,497.90 42,533,303.43
Advance payment 59,646,623.00 112,437,688.85
Other receivables 674,169,712.95 1,370,820,726.54
Including: Interest receivables
Dividends receivable 300,000,000.00 997,000,000.00
Inventory 458,506,509.44 326,023,373.10
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 80,073,156.09
Total current assets 2,103,374,985.68 2,621,981,935.44
Non-current assets:
Creditors investment
Other creditors investment
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Long-term receivables
Long-term equity investment 43,204,610,202.35 40,036,462,206.99
Investment in other equity
instruments
Other non-current financial assets
Investment property 10,667,020.60 10,938,466.60
Fixed assets 292,134,252.67 289,213,855.22
Construction in progress 15,782,000.00
Productive biological assets
Oil & gas assets
Right-of-use assets 1,813,314.23 3,263,965.63
Intangible assets 18,392,144.26 7,957,122.30
Development expenses
Goodwill
Long-term deferred expense
Deferred income tax assets
Other non-current assets
Total non-current assets 43,527,616,934.11 40,363,617,616.74
Total assets 45,630,991,919.79 42,985,599,552.18
Current liabilities:
Short-term borrowings 7,450,753,608.62 7,374,054,128.91
Trading financial liabilities
Derivative financial liabilities
Notes payable 700,000,000.00 417,000,000.00
Accounts payable 5,285,277,965.83 4,877,675,693.95
Advance collections
Contract liabilities 149,074,706.33 228,308,556.35
Payroll payable 46,566,384.61 43,445,201.37
Taxes payable 3,732,804.55 23,981,109.46
Other payables 5,268,355,508.97 2,345,308,128.31
Including: Interests payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within
885,163,049.92 249,889,346.35
one year
Other non-current liabilities 19,379,711.82 29,220,936.27
Total current liabilities 19,808,303,740.65 15,588,883,100.97
Non-current liabilities:
Long-term borrowings 3,695,453,801.14 1,468,996,156.68
Bonds payable 2,034,827,122.23 2,042,929,924.77
Including: Preferred share
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Perpetual bond
Lease liabilities 24,474.11 1,571,788.59
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income 9,434,323.24 11,149,526.44
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 5,739,739,720.72 3,524,647,396.48
Total liabilities 25,548,043,461.37 19,113,530,497.45
Owner’s equity:
Share capital 10,125,525,000.00 10,125,525,000.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 11,243,393,393.54 11,243,136,840.58
Less: Treasury stock 3,978,202,364.65
Other comprehensive income 44,972,616.09 86,581,231.86
Special reserves
Surplus reserves 886,470,394.72 712,695,666.11
Undistributed profits 1,760,789,418.72 1,704,130,316.18
Total owners' equity 20,082,948,458.42 23,872,069,054.73
Total liabilities and owner's equity 45,630,991,919.79 42,985,599,552.18
3. Consolidated Income Statement
Unit: RMB
Item 2022 2021
I. Gross operating income 289,094,841,612.76 183,074,930,286.51
Including: Operating income 289,094,841,612.76 183,074,930,286.51
Interest income
Earned premium
Handling charge and commission income
II. Gross operating costs 286,240,299,834.63 151,571,056,679.80
Including: Operating costs 257,841,154,581.27 135,087,063,117.36
Interest expense
Handling charge and commission expenses
Surrender value
Net payments for insurance claims
Net appropriation of reserves for insurance
liability contracts
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Policy dividend payment
Reinsurance costs
Taxes and surcharges 17,010,838,980.38 8,832,682,225.90
Selling expenses 175,450,628.16 154,972,404.33
Administrative expenses 815,233,609.10 682,723,375.14
R&D expenses 4,367,112,486.97 3,915,264,380.48
Financial expenses 6,030,509,548.75 2,898,351,176.59
Including: Interest expenses 4,577,830,003.95 3,597,132,178.72
Interest income 351,751,026.01 308,939,839.82
Add: Other income 2,363,252,918.77 124,260,225.18
Investment income (losses expressed with "-") 693,478,145.84 611,068,070.82
Including: Return on investment in
644,363,579.51 127,213,716.43
associated enterprises and joint ventures
Gains on derecognition of
financial assets measured at amortized cost
Exchange gains (losses expressed with “-”)
Net exposure hedging gains (losses expressed with “-”)
Gains on changes in fair value (losses expressed with "-") 10,728,066.90 146,935,772.45
Credit impairment loss (losses expressed with "-") -15,203,657.84 -74,973,487.19
Loss on assets impairment (losses marked with “-”) -282,256,547.80 -23,858,493.60
Gains on disposal of assets (losses expressed with “-”) 3,885,078.23 12,386,164.33
III. Operating profit (losses expressed with "-") 5,628,425,782.23 32,299,691,858.70
Add: Non-operating income 4,744,570.37 9,053,454.51
Less: Non-operating expenses 14,101,126.33 4,532,608.13
IV. Total profits (total losses expressed with "-") 5,619,069,226.27 32,304,212,705.08
Less: Income tax expenses -750,702,826.13 7,852,294,653.25
V. Net profit (net losses expressed with "-") 6,369,772,052.40 24,451,918,051.83
(I) By business continuity
1. Net profit from going concern (net losses expressed with
6,369,772,052.40 24,451,918,051.83
“-”)
2. Net profit from discontinued operations (net losses
expressed with “-”)
(II) By ownership
1. Net profit attributable to shareholders of the parent
3,340,162,428.95 13,236,054,388.76
company
2. Minority interest income 3,029,609,623.45 11,215,863,663.07
VI. Other comprehensive income, net of tax 181,210,268.64 58,069,090.16
After-tax net of other comprehensive income attributable to the
151,931,680.55 55,070,941.98
owners of parent company
(I) Other comprehensive income which may not be
reclassified to gain and loss
1. Re-measurement of changes in defined
benefit plans
2. Other comprehensive income which may not
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be transferred to gain and loss under the equity method
3. Changes in fair value of investment in other
equity instruments
4. Changes in fair value of the credit risk of the
Company
5. Others
(II) Other comprehensive income which may be reclassified
151,931,680.55 55,070,941.98
to gain and loss
1. Other comprehensive income which may be
-21,083,875.34 77,445,551.44
transferred to gain and loss under the equity method
2. Changes in fair value of other creditors
investment
3. Amount of financial assets reclassified into
other comprehensive income
4. Provision for credit impairment of other
creditors investments
5. Cash flow hedging reserves
6. Difference in translation of foreign currency
173,015,555.89 -22,374,609.46
financial statements
7. Others
Other comprehensive income attributable to minority
29,278,588.09 2,998,148.18
shareholders, net of tax
VII. Total comprehensive income 6,550,982,321.04 24,509,987,141.99
Total comprehensive income attributable to owners of the
3,492,094,109.50 13,291,125,330.74
parent company
Total comprehensive income attributable to minority
3,058,888,211.54 11,218,861,811.25
shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.33 1.31
(II) Diluted earnings per share 0.33 1.31
Legal representative: Li Shuirong Person in charge of accounting: Wang Yafang Person in charge of the accounting firm: Zhang Shaoying
4. Income Statement of the Parent Company
Unit: RMB
Item 2022 2021
I. Operating income 3,906,667,116.58 3,840,738,496.70
Less: Operating costs 4,022,505,958.26 3,549,322,292.60
Taxes and surcharges 12,952,366.03 8,477,767.12
Selling expenses 33,791,804.36 20,494,773.82
Administrative expenses 50,127,420.98 49,375,381.91
R&D expenses 81,025,592.00 81,114,053.14
Financial expenses 706,400,629.87 621,143,804.50
Including: Interest expenses 730,301,227.51 640,631,396.95
Interest incomes 36,626,532.50 40,945,533.49
Add: Other incomes 7,346,841.85 3,859,388.03
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Investment incomes (losses expressed with "-") 2,736,300,881.32 2,295,909,624.90
Including: Return on investment in associated enterprises and joint
268,195,976.97 236,916,416.17
ventures
Gains on derecognition of financial assets measured at
amortized cost (loss expressed with "-")
Net exposure hedging gains (losses expressed with “-”)
Gains on changes in fair value (losses expressed with "-")
Credit impairment loss (losses expressed with "-") 6,828,715.54 -9,399,693.11
Losses on assets impairment (losses marked with “-”) -12,601,352.12
Gains on the disposal of assets (losses expressed with “-”)
II. Operating profits (losses expressed with “-”) 1,737,738,431.67 1,801,179,743.43
Add: Non-operating incomes 12,190.56 55,591.86
Less: Non-operating expenses 3,336.13 305,707.51
III. Total profits (total losses expressed with “-”) 1,737,747,286.10 1,800,929,627.78
Less: Income tax expenses
IV. Net profits (net losses expressed with "-") 1,737,747,286.10 1,800,929,627.78
(1) Net profits from going concern (net losses expressed with “-”) 1,737,747,286.10 1,800,929,627.78
(2) Net profits from discontinued operations (net losses expressed with “-”)
V. Other comprehensive incomes, net of tax -41,608,615.77 74,393,183.21
(I) Other comprehensive income which may not be reclassified to gain and
loss
1. Re-measurement of changes in defined benefit plans
2. Other comprehensive income which may not be transferred to
gain and loss under the equity method
3. Changes in fair value of investment in other equity instruments
4. Changes in fair value of the credit risk of the Company
5. Others
(II) Other comprehensive incomes which may be reclassified to gain and loss -41,608,615.77 74,393,183.21
1. Other comprehensive incomes which may be transferred to gain
-41,608,615.77 74,393,183.21
and loss under the equity method
2. Changes in fair value of other creditors investment
3. Amount of financial assets reclassified into other comprehensive
incomes
4. Provision for credit impairment of other creditors investments
5. Cash flow hedging reserves
6. Difference in translation of foreign currency financial statements
7. Others
VI. Total comprehensive incomes 1,696,138,670.33 1,875,322,810.99
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
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5. Consolidated Cash Flow Statement
Unit: RMB
Item 2022 2021
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 338,522,230,751.87 213,329,886,608.17
Net increase in deposits from customers and other banks
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Cash received from receiving insurance premium of original insurance
contracts
Net cash received from reinsurance business
Net increase in deposits and investment of the insured
Cash received from interests, handling charges and commissions
Net increase in borrowing funds
Net increase in repurchase business capital
Net cash received from securities trading agency
Refunds of taxes and levies 23,966,619,179.64 997,424,916.70
Cash received relating to other operating activities 4,013,759,568.90 4,868,809,048.89
Subtotal of cash inflows for operating activities 366,502,609,500.41 219,196,120,573.76
Cash paid for goods purchased and services received 313,742,412,549.33 166,794,082,955.23
Net increase in loans and advances to customers
Net increase in deposits with the central bank and other banks
Cash paid for claims under original insurance contracts
Net increase in lending funds
Cash paid for interests, handling charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 3,796,045,980.29 3,482,252,588.46
Payments of all types of taxes 26,372,263,702.45 10,382,317,425.71
Cash paid relating to other operating activities 3,533,750,382.98 4,972,682,170.42
Subtotal of cash outflows from operating activities 347,444,472,615.05 185,631,335,139.82
Net cash flow from operating activities 19,058,136,885.36 33,564,785,433.94
II. Cash flows from investing activities:
Cash received from investment recovery 3,729,684,617.90 4,476,729,753.45
Cash received from the return on investment 480,185,918.81 38,906,664.24
Net cash received from the disposal of fixed assets, intangible assets and other
128,655,426.42 27,726,047.56
long-term assets
Net cash received from the disposal of subsidiaries and other business units 16,552,525.23
Cash received relating to other investing activities 413,191,478.93 2,369,587,005.40
Subtotal of cash inflows from investing activities 4,751,717,442.06 6,929,501,995.88
Cash paid for purchase and construction of fixed assets, intangible assets and
29,457,883,096.55 58,246,390,580.12
other long-term assets
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Cash paid for investments 3,773,365,703.69 4,349,151,259.07
Net increase in pledge loans
Net cash paid for acquisition of subsidiaries and other business units
Cash paid relating to other investing activities 486,776,219.14 1,174,716,306.10
Subtotal of cash outflows from investing activities 33,718,025,019.38 63,770,258,145.29
Net cash flows from investing activities -28,966,307,577.32 -56,840,756,149.41
III. Cash flow from financing activities:
Cash received from absorption of investment 2,498,660,000.00 1,780,000,000.00
Including: Cash received by subsidiaries from investments of minority
2,498,660,000.00 1,780,000,000.00
shareholders
Cash received from borrowings 93,103,414,620.97 141,013,920,343.94
Cash received relating to other financing activities 14,699,581,588.16 3,770,870,000.00
Subtotal of cash inflows from financing activities 110,301,656,209.13 146,564,790,343.94
Cash paid for repayment of debts 76,513,846,971.48 104,088,124,313.86
Cash paid for distribution of dividends and profits or payment of interests 11,471,972,294.10 7,845,601,934.08
Including: Dividends or profits paid by subsidiaries to minority shareholders 2,529,500,000.00
Cash paid relating to other financing activities 10,759,163,614.10 3,793,609,522.73
Subtotal of cash outflows from financing activities 98,744,982,879.68 115,727,335,770.67
Net cash flow from financing activities 11,556,673,329.45 30,837,454,573.27
IV. Effect of change in exchange rate on cash and cash equivalents -528,060,478.39 185,009,743.86
V. Net increase in cash and cash equivalents 1,120,442,159.10 7,746,493,601.66
Add: Opening balance of cash and cash equivalents 14,338,837,644.67 6,592,344,043.01
VI. Ending balance of cash and cash equivalents 15,459,279,803.77 14,338,837,644.67
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2022 2021
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 9,019,533,970.04 13,417,117,895.84
Refunds of taxes and levies 3,706,999.49 28,623,582.42
Cash received relating to other operating activities 3,335,504,075.51 2,343,843,739.08
Subtotal of cash inflows for operating activities 12,358,745,045.04 15,789,585,217.34
Cash paid for goods purchased and services received 8,155,206,221.15 14,449,287,480.56
Cash paid to and on behalf of employees 265,783,347.86 224,505,836.45
Payments of all types of taxes 84,164,591.71 69,767,755.77
Cash paid relating to other operating activities 3,416,128,004.85 2,451,030,841.44
Subtotal of cash outflows from operating activities 11,921,282,165.57 17,194,591,914.22
Net cash flow from operating activities 437,462,879.47 -1,405,006,696.88
II. Cash flows from investing activities:
Cash received from investment recovery 4,234,526.03 73,351,891.01
Cash received from the return on investment 3,286,685,918.80 112,026,036.00
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Net cash received from the disposal of fixed assets, intangible assets and
other long-term assets
Net cash received from the disposal of subsidiaries and other business
1,061,902.58
units
Cash received relating to other investing activities 5,515,829,166.67
Subtotal of cash inflows from investing activities 3,291,982,347.41 5,701,207,093.68
Cash paid for purchase and construction of fixed assets, intangible assets
29,750,290.38 7,928,554.12
and other long-term assets
Cash paid for investments 2,985,996,536.00 493,569,488.20
Net cash paid for acquisition of subsidiaries and other business units
Cash paid relating to other investing activities 3,500,000,000.00
Subtotal of cash outflows from investing activities 3,015,746,826.38 4,001,498,042.32
Net cash flows from investing activities 276,235,521.03 1,699,709,051.36
III. Cash flow from financing activities:
Cash received from absorption of investment
Cash received from borrowings 13,937,740,982.91 10,303,422,085.05
Cash received relating to other financing activities 16,320,574,824.00 11,369,000,000.00
Subtotal of cash inflows from financing activities 30,258,315,806.91 21,672,422,085.05
Cash paid for repayment of debts 11,029,293,598.66 10,310,557,276.50
Cash paid for distribution of dividends and profits or payment of interests 2,009,000,996.77 1,517,645,790.42
Cash paid relating to other financing activities 17,875,313,657.27 9,770,907,194.33
Subtotal of cash outflows from financing activities 30,913,608,252.70 21,599,110,261.25
Net cash flow from financing activities -655,292,445.79 73,311,823.80
IV. Effect of change in the exchange rate on cash and cash equivalents -12,330,984.86 1,286,226.77
V. Net increase in cash and cash equivalents 46,074,969.85 369,300,405.05
Add: Opening balance of cash and cash equivalents 464,104,910.32 94,804,505.27
VI. Ending balance of cash and cash equivalents 510,179,880.17 464,104,910.32
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7. Consolidated Statement of Changes in Owner's Equity
Current amount
Unit: RMB
2022
O wner's e quity attributable to the parent company
O ther equity
instruments
Item Gener Undistribut
O ther Total owners'
Share Pref Per Le ss: Tre asury Spe cial Surplus al risk O the Minority equity
equity
erre petu Capital reserve compre hensi ed Subtotal
capital O th stock re serves re serve reserv rs
d al ve income
e
ers profit
shar bon
es d
10,125 -
I. Ending balance of the 10,820,095,85 712,695,666 27,192,95 48,838,798 46,404,668,22 95,243,466,59
previous year ,525,0 12,469,066.
0.58 .11 0,922.86 ,372.71 1.37 4.08
00.00 84
Add: Changes in 412,507,5 412,507,57 391,029,261.2 803,536,836.9
accounting policies 75.69 5.69 9 8
Correction of errors in
the previous period
Business combinations
under the same control
Others
10,125 -
10,820,095,85 712,695,666 27,605,45 49,251,305 46,795,697,48 96,047,003,43
II. Opening balance of the year ,525,0 12,469,066.
0.58 .11 8,498.55 ,948.40 2.66 1.06
00.00 84
III. Increases/decreases in the -
3,978,202,36 151,931,680 173,774,728 1,659,074, 3,109,702,395. 1,118,779,348.
current period (decrease 2,498,662.81 1,990,923,
expressed with "-") 4.65 .55 .61 245.39 53 24
047.29
(I) Total comprehensive 151,931,680 3,340,162, 3,492,094, 3,058,888,211. 6,550,982,321.
income .55 428.95 109.50 54 04
- -
(II) Capital contributed and 3,978,202,36 2,498,660,000.
reduced by owners 3,978,202, 1,479,542,364.
4.65 00
364.65 65
- -
1. Ordinary shares invested by 3,978,202,36 2,498,660,000.
the owners 3,978,202, 1,479,542,364.
4.65 00
364.65 65
2. Capital contributed by
holders of other equity
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instruments
3. Amount of share-based
payment recognized in owners’
equity
4. Others
- - - -
173,774,728
(III) Profit distribution 1,681,088, 1,507,313, 2,450,000,000. 3,957,313,454.
.61
183.56 454.95 00 95
-
1. Withdrawal of surplus 173,774,728
reserve
173,774,7
.61
28.61
2. Withdrawal of generic risk
reserves
- - - -
3. Distribution to owners (or
shareholders) 1,507,313, 1,507,313, 2,450,000,000. 3,957,313,454.
454.95 454.95 00 95
4. Others
(IV) Internal carry-forward of
owner's equity
1. Capital reserve transferred
into capital (or share capital)
2. Surplus reserve transferred
into capital (or share capital)
3. Surplus reserves for making
up loss
4. Changes in defined benefit
plans carried forward to
retained earnings
5. Other comprehensive
incomes carried forward to
retained earnings
6. Others
(V) Special reserve
1. Amount appropriated in the 224,052,374 224,052,37 165,574,100.9 389,626,475.7
current period .80 4.80 5 5
2. Use in the current period
224,052,374 224,052,37 165,574,100.9 389,626,475.7
.80 4.80 5 5
2,498,662.
(VI) Others 2,498,662.81 2,154,183.99 4,652,846.80
81
10,125
IV. Ending balance of the 10,822,594,51 3,978,202,36 139,462,613 886,470,394 29,264,53 47,260,382 49,905,399,87 97,165,782,77
current period ,525,0
3.39 4.65 .71 .72 2,743.94 ,901.11 8.19 9.30
00.00
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Amount of prior period
Unit: RMB
2021
O wner's e quity attributable to the parent company
O ther e quity
Item instruments O ther Undistribute Minority Total owners'
Le ss: General Ot
Prefe Capital comprehen Spe cial Surplus equity equity
Share capital Pe rp Ot Tre asury risk d her Subtotal
re serve sive re serves re serve
rred stock reserve s
e tual he r income
share profit
bond s
s
-
6,750,350,0 14,188,879, 532,602,7 15,562,049, 36,966,341, 32,893,663, 69,860,005,
I. Ending balance of the previous year 67,540,00
00.00 508.65 03.33 572.57 775.73 687.92 463.65
8.82
Add: Changes in accounting
policies
Correction of errors in the previous
period
Business combinations under the same
control
Others
-
6,750,350,0 14,188,879, 532,602,7 15,562,049, 36,966,341, 32,893,663, 69,860,005,
II. Opening balance of the year 67,540,00
00.00 508.65 03.33 572.57 775.73 687.92 463.65
8.82
-
III. Increases/decreases in the current 3,375,175,0 55,070,94 180,092,9 12,043,408, 12,284,964, 13,902,033, 26,186,997,
period (decrease expressed with "-") 3,368,783,6
00.00 1.98 62.78 925.98 172.67 794.74 967.41
58.07
(I) Total comprehensive income
55,070,94 13,236,054, 13,291,125, 11,218,861, 24,509,987,
1.98 388.76 330.74 811.25 141.99
(II) Capital contributed and reduced 1,780,000,0 1,780,000,0
by owners 00.00 00.00
1. Ordinary shares invested by the 1,780,000,0 1,780,000,0
owners 00.00 00.00
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
recognized in owners’ equity
4. Others
- - - -
180,092,9
(III) Profit distribution 1,192,645,4 1,012,552,5 123,750,000 1,136,302,5
62.78
62.78 00.00 .00 00.00
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-
180,092,9
1. Withdrawal of surplus reserve 180,092,962
62.78
.78
2. Withdrawal of generic risk reserves
- - - -
3. Distribution to owners (or
shareholders)
1,012,552,5 1,012,552,5 123,750,000 1,136,302,5
00.00 00.00 .00 00.00
4. Others
-
(IV) Internal carry-forward of owner's 3,375,175,0
equity 3,375,175,0
00.00
00.00
-
1. Capital reserve transferred into 3,375,175,0
capital (or share capital)
3,375,175,0
00.00
00.00
2. Surplus reserve transferred into
capital (or share capital)
3. Surplus reserves for making up loss
4. Changes in defined benefit plans
carried forward to retained earnings
5. Other comprehensive incomes
carried forward to retained earnings
6. Others
(V) Special reserve
1. Amount appropriated in the current 132,443,5 132,443,516 93,236,173. 225,679,690
period 16.71 .71 89 .60
2. Use in the current period
132,443,5 132,443,516 93,236,173. 225,679,690
16.71 .71 89 .60
(VI) Others
6,391,341.9 6,391,341.9 1,026,921,9 1,033,313,3
3 3 83.49 25.42
-
IV. Ending balance of the current 10,125,525, 10,820,095, 712,695,6 27,605,458, 49,251,305, 46,795,697, 96,047,003,
period 12,469,06
000.00 850.58 66.11 498.55 948.40 482.66 431.06
6.84
8. Statement of Changes in Owners’ Equity of the Parent Company
Current amount
Unit: RMB
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2022
O ther e quity instruments
Item O ther
Pre ferr Le ss: Tre asury Special Surplus Undistributed O the Total owners'
Share capital Capital reserve comprehensive
Pe rpetu O the stock reserves reserve profit rs equity
ed income
al bond rs
shares
I. Ending balance of the previous year 10,125,525,000.00 11,243,136,840.58 86,581,231.86 712,695,666.11 1,704,130,316.18 23,872,069,054.73
Add: Changes in accounting policies
Correction of errors in the previous period
Others
II. Opening balance of the year 10,125,525,000.00 11,243,136,840.58 86,581,231.86 712,695,666.11 1,704,130,316.18 23,872,069,054.73
III. Increases/decreases in the current period
256,552.96 3,978,202,364.65 -41,608,615.77 173,774,728.61 56,659,102.54 -3,789,120,596.31
(decrease expressed with "-")
(I) Total comprehensive income -41,608,615.77 1,737,747,286.10 1,696,138,670.33
(II) Capital contributed and reduced by owners 3,978,202,364.65 -3,978,202,364.65
1. Ordinary shares invested by the owners 3,978,202,364.65 -3,978,202,364.65
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment recognized in
owners’ equity
4. Others
(III) Profit distribution 173,774,728.61 -1,681,088,183.56 -1,507,313,454.95
1. Withdrawal of surplus reserve 173,774,728.61 -173,774,728.61
2. Distribution to owners (or shareholders) -1,507,313,454.95 -1,507,313,454.95
3. Others
(IV) Internal carry-forward of owner's equity
1. Capital reserve transferred into capital (or
share capital)
2. Surplus reserve transferred into capital (or
share capital)
3. Surplus reserves for making up loss
4. Changes in defined benefit plans carried
forward to retained earnings
5. Other comprehensive incomes carried forward
to retained earnings
6. Others
(V) Special reserve
1. Amount appropriated in the current period
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2. Use in the current period
(VI) Others 256,552.96 256,552.96
IV. Ending balance of the current period 10,125,525,000.00 11,243,393,393.54 3,978,202,364.65 44,972,616.09 886,470,394.72 1,760,789,418.72 20,082,948,458.42
Amount of prior period
Unit: RMB
2021
O ther e quity instruments
Item Le ss: O ther
Special Undistributed O the Total owners'
Share capital Pre ferr Capital reserve Tre asury compre hensive Surplus reserve
Pe rpetu O the reserves profit rs equity
ed stock income
al bond rs
shares
I. Ending balance of the previous year
6,750,350,000.0 14,618,311,840. 12,188,048.6 532,602,703.3 1,095,846,151.1 23,009,298,743.
0 58 5 3 8 74
Add: Changes in accounting policies
Correction of errors in the previous period
Others
II. Opening balance of the year
6,750,350,000.0 14,618,311,840. 12,188,048.6 532,602,703.3 1,095,846,151.1 23,009,298,743.
0 58 5 3 8 74
-
III. Increases/decreases in the current period 3,375,175,000.0 74,393,183.2 180,092,962.7
(decrease expressed with "-") 3,375,175,000.0 608,284,165.00 862,770,310.99
0 1 8
0
(I) Total comprehensive income
74,393,183.2 1,800,929,627.7 1,875,322,810.9
1 8 9
(II) Capital contributed and reduced by owners
1. Ordinary shares invested by the owners
2. Capital contributed by holders of other equity
instruments
3. Amount of share-based payment recognized in
owners’ equity
4. Others
- -
180,092,962.7
(III) Profit distribution 1,192,645,462.7 1,012,552,500.0
8
8 0
180,092,962.7
1. Withdrawal of surplus reserve -180,092,962.78
8
2. Distribution to owners (or shareholders) - -
1,012,552,500.0 1,012,552,500.0
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0 0
3. Others
-
3,375,175,000.0
(IV) Internal carry-forward of owner's equity 3,375,175,000.0
0
0
-
1. Capital reserve transferred into capital (or share 3,375,175,000.0
capital) 3,375,175,000.0
0
0
2. Surplus reserve transferred into capital (or share
capital)
3. Surplus reserves for making up loss
4. Changes in defined benefit plans carried
forward to retained earnings
5. Other comprehensive incomes carried forward
to retained earnings
6. Others
(V) Special reserve
1. Amount appropriated in the current period
2. Use in the current period
(VI) Others
IV. Ending balance of the current period
10,125,525,000. 11,243,136,840. 86,581,231.8 712,695,666.1 1,704,130,316.1 23,872,069,054.
00 58 6 1 8 73
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III. Company Profile
Rongsheng Petrochemical Co., Ltd. (hereinafter referred to as the Company) is a joint-stock limited company
initiated and established on the foundation of Rongsheng Chemical Fiber Group Co., Ltd. by Zhejiang Rongsheng
Holding Group Co., Ltd., as well as natural persons including Li Shuirong, Li Yongqing, Li Guoqing, Xu Yuejuan,
Ni Xincai and Zhao Guanlong. The Company was registered on June 18, 2007 and is headquartered in Hangzhou,
Zhejiang Province. The Company now holds the Business License (Unified Social Credit Code:
91330000255693873W) issued by the Industry and Commerce Administration of Zhejiang Province, with a
registered capital of RMB 10,125,525,000.00 and a total of 10,125,525,000.00 shares (par value: RMB 1 per
share), including outstanding shares subject to sales restrictions: 627,243,750 A shares, and outstanding shares not
subject to sales restrictions: 9,498,281,250 A shares. Shares of the Company were listed for trading at Shenzhen
Stock Exchange on November 2, 2010.
The Company operates in the petrochemical fiber industry. Business scope: manufacturing and processing of
polyester yarn and chemical fabric, processing of paper products, sales of light textile raw materials and products,
hardware, chemical products and raw materials (other than hazardous chemicals and precursor chemicals),
industrial investment, warehousing services of ordinary goods (excluding dangerous goods), road cargo
transportation (operation with a valid license), import and export business. (Business activities subject to the
approval shall be carried out upon approval by relevant departments according to law.) Main products include oil
refining products, chemical products, PTA, polyester chip, polyester yarn and film, and so forth.
The financial statements were approved for publication at the seventh meeting of the sixth session of the
Board of Directors of the Company on April 18, 2023.
The Company has included its 34 subsidiaries in the consolidated financial statements of the current period,
such as Zhejiang Shengyuan Chemical Fiber Co., Ltd., Hong Kong Sheng Hui Co., Ltd., Ningbo Yisheng
Chemical Co., Ltd., Dalian Yisheng Investment Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Hong Kong
Yisheng Dahua Petrochemical Co., Ltd., Dalian Rongxincheng Trading Co., Ltd., Zhejiang Rongtong New
Materials Co., Ltd., Dalian Yisheng New Material Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., Ningbo
Niluoshan New Energy Co., Ltd., Zhejiang Yisheng New Materials Co., Ltd., Ningbo Rongxincheng Trading Co.,
Ltd., Yisheng New Materials Trading Co., Ltd., Zhejiang Rongyi Trading Co., Ltd., Rongsheng Petrochemical
(Singapore) Pte. Ltd., Rongtong Logistics (Singapore) Pte. Ltd., Rongsheng Petrochemical (Hong Kong) Co., Ltd.,
Rongsheng International Trading Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd., Zhoushan Yushan
Petrochemical Engineering Company Limited, ZPC Zheyou Technology Co., Ltd., Zhejiang Petroleum &
Chemical (Singapore) Pte. Ltd., ZPC Jintang Logistics Co., Ltd., Zhejiang ZPC Sales Co., Ltd., Zhoushan ZPC
Sales Co., Ltd., ZPC (Zhejiang Free Trade Zone) Green Petrochemical Research Institute Co., Ltd., Rongxiang
Chemical Fiber Co., Ltd., Zhejiang Yongsheng Technology Co., Ltd., Zhejiang Zhuosheng Trading Co., Ltd.,
Rongsheng International Trading (Hainan) Co., Ltd., Rongsheng Chemical (Shanghai) Co., Ltd., Rongsheng New
Materials (Zhoushan) Co., Ltd., and Rongsheng New Materials (Taizhou) Co., Ltd., See Notes VI and VII to these
financial statements for details.
IV. Preparation Basis of Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on a going concern basis.
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2. Going concern
There are no matters or circumstances that cause the Company to have serious doubts about its going concern
ability within 12 months from the end of the reporting period.
V. Significant Accounting Policies and Accounting Estimates
Tips for specific accounting policies and accounting estimates:
Important tips: According to the actual production and operation characteristics, the Company has formulated
specific accounting policies and accounting estimates for transactions or events such as impairment of financial
instruments, depreciation of right-of-use assets, depreciation of fixed assets, amortization of intangible assets and
revenue recognition.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises, which truthfully and completely reflect the Company's financial position,
business achievements, cash flow and other relevant information.
2. Accounting period
The accounting year is the calendar year from January 1 to December 31.
3. Operating cycle
The business cycle of the Company is short, and 12 months is taken as the liquidity division standard of
assets and liabilities.
4. Recording currency
The Company and its domestic subsidiaries adopt RMB as the recording currency, while overseas
subsidiaries such as Hong Kong Sheng Hui Co., Ltd., Hong Kong Yisheng Dahua Petrochemical Co., Ltd.,
Yisheng New Materials Trading Co., Ltd., Rongsheng Petrochemical (Singapore) Private Co., Ltd., Rongtong
Logistics (Singapore) Private Co., Ltd., Rongsheng Petrochemical (Hong Kong) Co., Ltd. and Zhejiang Petroleum
& Chemical (Singapore) Private Co., Ltd. engaging in overseas operations, choose the currency in the main
economic environment where they operate as the recording currency.
5. Accounting methods for business combinations under the same control and not under the same control
1. Accounting methods for business combinations under the same control
The assets and liabilities acquired by the Company in business combination shall be measured according to
the book value of the combined party in the consolidated financial statements of the final controlling party on the
date of combination. The Company shall adjust the capital reserve according to the difference between the book
value share of the owner's equity of the combined party in the consolidated financial statements of the final
controlling party and the book value of the consolidated consideration paid or the total face value of the issued
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shares; If the capital reserve is not sufficient for offsetting, the adjustment is made to retained earnings.
2. Accounting methods for business combinations not under the common control
On the purchase date, the difference between the combined cost and the fair value share of the identifiable
net assets of the acquiree obtained in the merger is recognized as goodwill. If the combined cost is less than the
fair value share of the identifiable net assets of the acquiree obtained in the combination, first, the fair value of
identifiable assets, liabilities and contingent liabilities of the acquiree and the measurement of combined cost are
reviewed. If the combined cost is still less than the fair value share of identifiable net assets of the acquiree
obtained in the merger after review, the difference is included in the current gain and loss.
6. Preparation method for consolidated financial statements
The parent company brings all subsidiaries under its control into the consolidation scope of the consolidated
financial statements. The consolidated financial statements are based on the financial statements of the parent
company and its subsidiaries and are prepared according to other related documents by the parent company in
accordance with the Accounting Standards for Business Enterprises No. 33—Consolidated Financial
Statements.
7. Classification of joint arrangement and accounting methods for joint operation
1. The joint arrangement is divided into joint operation and joint venture.
2. When the Company is a party to a joint operation, the following items are recognized in relation to the
share of interest in the joint operation:
(1) Recognition of assets held individually and assets held jointly on a holding share basis;
(2) Recognition of liabilities assumed individually and liabilities assumed jointly on a holding share basis;
(3) Recognition of revenue from the sale of the Company's share of common operation output;
(4) Recognition of income from joint operations arising from the sale of assets based on the Company's share
of ownership;
(5) Recognition of expenses incurred separately and recognition of expenses incurred in joint operations
based on the Company's share of ownership.
8. Recognition standard for cash and cash equivalents
Cash listed in the statement of cash flows refers to cash on hand and deposits that can be used for payment at
any time. The term "cash equivalents" refers to short-term and highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
9. Foreign currency business and conversion of foreign currency statements
1. Translation of foreign currency business
In foreign currency transactions, the spot exchange rate at the transaction date shall be adopted at the initial
recognition to convert the foreign currency into the amount of RMB. On the balance sheet date, the monetary
items denominated in foreign currencies are translated at the spot exchange rate on the balance sheet date. The
exchange differences arising from the exchange rate are included in current gain and loss except for the exchange
difference between the principal and interest of foreign currency-specific borrowings related to the acquisition and
construction of assets eligible for capitalization. The foreign currency non-monetary items measured at historical
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cost are still translated at the spot exchange rate at the transaction date, and their RMB amount shall not be
changed. Foreign currency non-monetary items measured at fair value are translated at the spot exchange rate at
the determination date of fair value, and the exchange differences are included in current gain and loss or other
comprehensive income.
2. Translation of foreign currency financial statements
Items of assets and liabilities in the balance sheet are translated at the spot exchange rate prevailing on the
balance sheet date. Except for the "undistributed profit" item, other items of owner's equity are translated at the
spot exchange rate at the transaction date. Income and expense items in the income statement are translated at the
approximate spot exchange rate at the transaction date. The converted difference in foreign currency financial
statements arising from the above translations is included in other comprehensive income.
10. Financial instruments
1. Classification of financial assets and financial liabilities
At initial recognition, financial assets are classified into the following three categories: (1) financial assets at
amortized cost; (2) financial assets at fair value through other comprehensive income; and (3) financial assets at
fair value through gain and loss.
At initial recognition, financial liabilities are classified into four categories: (1) financial liabilities at fair
value through gain and loss; (2) financial liabilities that are formed since the transfer of financial assets do not
comply with the conditions for derecognition or continue to involve in the financial assets to be transferred; (3)
financial guarantee contracts not falling under the above (1) or (2), and loan commitments not falling under the
above (1) and lending at a rate lower than the market interest rate; (4) financial liabilities at amortized cost.
2. Recognition basis, measurement methods and derecognition conditions for financial assets and financial
liabilities
(1) Recognition basis and initial measurement methods for financial assets and financial liabilities
A financial asset or a financial liability shall be recognized when the Company becomes a party to a financial
instrument contract. A financial asset or financial liability shall be measured at fair value at the initial recognition.
For financial assets or financial liabilities at fair value through gain and loss, the transaction expenses thereof shall
be directly recorded in current gain and loss. For other categories of financial assets or financial liabilities, the
related transaction expenses are included in the initial recognition amount. However, if the accounts receivable
initially recognized by the Company do not contain significant financing components or the Company does not
consider the financing components in contracts less than one year, the initial recognition shall be carried out
according to transaction price as defined in the Accounting Standards for Business Enterprises No. 14—Revenue.
(2) Subsequent measurement method for financial assets
1) Financial assets measured at amortized cost
They are subsequently measured at amortized cost by adopting the effective interest method. Gains or losses
arising from financial assets measured at amortized cost and not part of any hedging relationship are included in
current gain and loss upon derecognition, reclassification, amortization under the effective interest method or
recognition of impairment.
2) Debt instrument investments at fair value through other comprehensive income
They are subsequently measured at fair value. Interest, impairment losses or gains and exchange gains and
losses calculated by the effective interest method are included in current gain and loss, and other gains or losses
are included in other comprehensive income. Upon derecognition, the accumulated gain or loss previously
included in other comprehensive incomes is transferred from other comprehensive incomes and included in the
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current gain and loss.
3) Equity instrument investments at fair value through other comprehensive income
They are subsequently measured at fair value. Dividends obtained (except those falling under the recovery of
investment costs) are included in current gain and loss, and other gains or losses are included in other
comprehensive income. Upon derecognition, the accumulated gain or loss previously included in other
comprehensive incomes is transferred out from other comprehensive incomes and included in retained earnings.
4) Financial assets at fair value through gain and loss
They are subsequently measured at fair value, and the resulting gains or losses (including interest and
dividend income) are included in current gain and loss, unless the financial asset is part of the hedging
relationship.
(3) Subsequent measurement method for financial liabilities
1) Financial liabilities at fair value through gain and loss
Such financial liabilities comprise trading financial liabilities (including derivatives of financial liabilities)
and those specified as financial liabilities at fair value through gain and loss. Such financial liabilities are
subsequently measured at fair value. Change in fair value of financial liability designated to be measured at fair
value through gain and loss due to change in the Company's own credit risk is included in other comprehensive
income, unless the treatment will cause or expand the accounting mismatch in gain and loss. Other gains or losses
arising from such financial liabilities (including interest expenses, except changes in fair value caused by changes
in the own credit risk) are included in current gain and loss, unless the financial liabilities are part of the hedging
relationship. Upon derecognition, the accumulated gain or loss previously included in other comprehensive
incomes is transferred out from other comprehensive incomes and included in retained earnings.
2) Financial liabilities that are formed since the transfer of financial asset does not comply with the
conditions for derecognition or continue to involve in the financial assets to be transferred
They are measured pursuant to relevant provisions under Accounting Standards for Business Enterprises No.
23—Transfer of Financial Assets.
3) Financial guarantee contracts not falling under the above 1) or 2), and loan commitments not falling under
the above 1) and to lend at a rate lower than the market interest rate
A subsequent measurement shall be made after they are initially recognized according to the higher one of
the following: ① the amount of loss reserve determined in accordance with the impairment provisions of financial
instruments; ② the remaining amount after the determined accumulative amortization amount is deducted from
the initially recognized amount in accordance with relevant provisions of the Accounting Standards for Business
Enterprises No.14—Revenue.
4) Financial liabilities at amortized cost
They are measured at amortized cost under the effective interest method. Gains or losses arising from
financial liabilities measured at amortized cost and not part of any hedging relationship are included in current
gain and loss when derecognized and amortized under the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) The Company will derecognize the financial assets when one of the following conditions are met:
① The contractual rights to the cash flows from the financial asset expire;
② The transfer of such financial assets has been completed and is in line with the provisions on
derecognition of a financial asset under the Accounting Standards for Business Enterprises No. 23—Transfer of
Financial Assets.
2) When the current obligations of financial liabilities (or part thereof) have been discharged, the recognition
of the financial liabilities (or part thereof) shall be terminated accordingly.
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3. Recognition basis and measurement method for transfer of financial assets
Where the Company transfers almost all risks and returns related to the ownership of the financial assets
transferred, these financial assets will be derecognized, and the rights and obligations that occurred or were
retained during the transfer are separately recognized as assets or liabilities. Where almost all risks and rewards on
the ownership of financial assets are retained, the transferred financial assets shall continue to be recognized.
Where the Company has neither transferred nor retained any risk and reward relating to the ownership of the
financial assets, it shall be disposed of in the following conditions: (1) where the control over the financial asset is
not retained, the recognition of the financial asset shall be terminated, and the rights and obligations arising or
retained in the transfer shall be separately recognized as assets or liabilities; 2) where the control over the financial
asset is retained, the relevant financial asset shall be recognized according to the degree of continued involvement
in the transferred financial asset, and the relevant liabilities shall be recognized accordingly.
When the overall transfer of financial assets meets the conditions for derecognition, the difference between
the following two amounts shall be included in the current gain and loss: (1) the book value of the transferred
financial assets on the date of derecognition; (2) the sum of the consideration received from the transfer of
financial assets and the amount of the derecognized part in a cumulative amount of change in fair value which is
originally included in other comprehensive income (the financial assets involved in the transfer are debt
instrument investments at fair value through other comprehensive income). A part of financial assets is transferred,
and if the transferred part meets the conditions for derecognition entirely, the book value of the whole financial
asset before transfer shall be allocated between the derecognized part and the continued recognition part according
to their relative fair values on the transfer date, and the difference between the following two amounts shall be
included in current gain and loss: (1) the book value of the derecognized part; (2) the sum of the consideration of
the derecognized part and the amount of the corresponding derecognized part in the accumulated amount of
changes in fair value originally directly included in other comprehensive income (the financial assets involved in
the transfer are debt instrument investments at fair value through other comprehensive income).
4. Methods for determination of the fair value of financial assets and financial liabilities
When determining the fair value of related financial assets and financial liabilities, the Company adopts the
valuation technique applicable in the prevailing circumstance and supported by sufficient available data and other
information. The Company classifies the input values used by the valuation technique as the following tiers and
uses them in turns:
(1) Tier 1 input value refers to the unadjusted quotations of the same assets or liabilities in an active market
which can be obtained on the measurement date;
(2) Tier 2 input value refers to them directly or indirectly observable input value of relevant assets or
liabilities apart from Tier 1 input value, including: quotations of similar assets or liabilities on an active market;
quotations of identical or similar assets or liabilities in markets that are not active; observable input values other
than quotations, such as interest rates and yield curves that are observable during normal quotation intervals; input
values for market validation, etc.;
(3) Tier 3 input value refers to the unobservable input value of relevant assets or liabilities, including the
volatility of interest rate and stock that cannot be directly observed or cannot be verified by observable market
data, the future cash flows of the disposal obligations assumed in the business combination, financial forecasts
made using its own data, etc.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
On the basis of expected credit loss, for financial assets at amortized cost, debt instrument investments at fair
value through other comprehensive income, contract assets, lease receivables, loan commitments classified as
financial liabilities at fair value through gain and loss, financial guarantee contracts that do not belong to financial
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liabilities at fair value through gain and loss or financial liabilities formed by the transfer of financial assets that
do not meet the conditions for derecognition or continue to be involved in the transferred financial assets shall be
impaired and loss reserve shall be recognized.
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contract cash flow receivables according to the
contract, and all cash flows expected to be collected, that is, the present value of all cash shortages. The financial
assets purchased or generated by the Company that have suffered credit impairment are discounted according to
the credit-adjusted effective interest rate of the financial assets.
For the purchased or originated financial assets with credit impairment, the Company only recognizes the
cumulative change of expected credit loss in the whole existence period after initial recognition as the loss reserve
on the balance sheet date.
For receivables and contract assets arising from transactions as stipulated under the Accounting Standards for
Business Enterprises No. 14—Revenue that do not contain significant financing components or where the
Company does not consider the financing components in contracts not exceeding one year, the Company uses
simplified measurement methods to measure the loss reserve according to the expected credit loss amount
equivalent to the whole duration.
For financial assets other than the above measurement methods, the Company assesses whether its credit risk
has increased significantly since initial recognition on each balance sheet date. If the credit risk has increased
significantly since the initial recognition, the Company shall measure the loss reserve according to the amount of
expected credit loss during the whole existence period. If the credit risk has not increased significantly since the
initial recognition, the Company shall measure the loss reserve according to the amount of expected credit loss of
the financial instrument in the next 12 months.
The Company uses available reasonable and based information, including forward-looking information, to
determine whether the credit risk of financial instruments has increased significantly since the initial recognition
by comparing the default risk of financial instruments on the balance sheet date with the default risk on the initial
recognition date.
On the balance sheet date, if the Company judges that the financial instrument only has low credit risk, it is
assumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.
The Company evaluates the expected credit risk and measures the expected credit loss on the basis of a single
financial instrument or combination of financial instruments. When based on the portfolio of financial instruments,
the Company divides the financial instruments into different portfolios according to the common risk
characteristics.
The Company re-measures the expected credit loss on each balance sheet date, and the resulting increase or
reversal of the loss reserve is included in the current gain and loss as impairment loss or profit. For financial assets
at amortized cost, the loss provision is offset against the book value of the financial asset as given in the balance
sheet; For debt investment measured at fair value through other comprehensive income, the loss allowances are
recognized in other comprehensive income by the Company instead of offsetting the book value of the financial
assets.
(2) Financial instruments where expected credit risk is evaluated and expected credit loss is measured by
portfolio
Basis for determining Method for measuring expected
Item
portfolios credit loss
Other receivables - Loan margin portfolio Nature of account With reference to historical credit loss
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experience and in combination with the
Other receivables - government receivables portfolio
current situation and the forecast of
future economic conditions, the
Other receivables - futures margin portfolio expected credit loss is calculated
through default risk exposure and the
Other receivables - paper goods transaction
expected credit loss rate in the next 12
settlement portfolio
months or the whole duration.
Other receivables - deposit and margin receivables
portfolio
Other receivables - reserve fund receivables portfolio
Other receivables - current account portfolio
Other receivables - Related party dealings portfolio Related parties within the scope
within the scope of consolidation of consolidation [note]
[Note]: Related parties of the Company and within the scope of consolidated financial statements
(3) Receivables and contract assets with expected credit losses measured by portfolio
1) Specific portfolio and method for measuring expected credit loss
Basis for
Item determining Method for measuring expected credit loss
portfolios
Banker's acceptance receivables With reference to historical credit loss experience and in
combination with the current situation and the forecast of
Type of notes future economic conditions, the expected credit loss is
Commercial acceptance bill receivables calculated through default risk exposure and the expected
credit loss rate in the whole duration
With reference to historical credit loss experience and in
combination with the current situation and the forecast of
future economic conditions, the comparison table between
Accounts receivable - aging portfolio Aging
the aging of accounts receivable and the expected credit loss
rate of the whole duration is compiled to calculate the
expected credit loss
With reference to historical credit loss experience and in
combination with the current situation and the forecast of
Accounts receivable - trade accounts
Nature of account future economic conditions, the expected credit loss is
portfolio of overseas subsidiaries
calculated through default risk exposure and the expected
credit loss rate in the whole duration
With reference to historical credit loss experience and in
Related parties combination with the current situation and the forecast of
Accounts receivable - Related party dealings
within the scope of future economic conditions, the expected credit loss is
portfolio within the scope of consolidation
consolidation calculated through default risk exposure and the expected
credit loss rate in the whole duration
2) Accounts receivable—comparison table between aging of aging portfolio and expected credit loss rate of
the whole duration
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (included, the same below) 5
1-2 year(s) 10
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2-3 years 30
Above 3 years 100
6. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately on the balance sheet and can not offset each
other. However, if the following conditions are met at the same time, the net amount after mutual offset shall be
listed in the balance sheet: (1) the Company has the legal right to set off the recognized amount, and such legal
right is currently enforceable; (2) the Company intends either to settle on a net basis, or to realize the financial
assets and pay off the financial liabilities simultaneously.
For the transfer of financial assets not in line with the conditions for derecognition, the Company does not
offset the transferred financial assets and liabilities.
11. Inventories
1. Classification of inventories
Inventory includes finished products or commodities held for sale in daily activities, products in the process
of production, materials and supplies consumed in the process of production or providing labor services.
2. Valuation method for delivered inventories
Inventories delivered shall be weighted average at the end of each month.
3. Recognition basis for the net realizable value of inventories
On the balance sheet date, the inventory was measured at the lower of the cost and net realizable value.
Inventory falling price reserves were accrued based on the difference between the cost of a single inventory and
the net realizable value. The net realizable value of inventory directly used for sale will be determined by the
amount of the estimated selling price of the inventory minus the estimated sales expenses and related taxes. For
inventories that need to be processed, the net realizable value shall be determined in the normal production and
operation process by subtracting the estimated selling price of finished products produced from the estimated cost
to be incurred when completion, the estimated sales expenses and relevant taxes and fees. On the balance sheet
date, if a part of the same inventory has a contract price agreement and other parts do not have a contract price, the
net realizable value shall be determined respectively, and the corresponding cost shall be compared to determine
the accrual or reversal amount of inventory depreciation reserve respectively.
4. Inventory system of inventories
The perpetual inventory system is adopted for inventories.
5. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables
Low-value consumables are amortized using the one-off amortization method.
(2) Packaging materials
Low-value consumables are amortized using the one-off amortization method.
12. Contract assets
The Company presents contract assets or liabilities in the balance sheet based on the relation between
performance obligation and customer payment. The Company will record the net amount of contract assets and
contract liabilities under the same contract after they are set off against each other.
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The Company records the right to receive consideration from customers unconditionally (i.e., only depending
on the time lapses) as the receivables, and presents the right to receive consideration when goods have been
transferred to the customers, which depends on other factors other than the time lapses, as contract assets.
13. Contract costs
Assets relating to contract cost comprise contract acquisition cost and contract performance cost.
Where the incremental cost incurred by the Company to acquire the contract is expected to be recovered, it is
recognized in the form of contract acquisition cost as an asset. The contract acquisition cost for which the
amortization period does not exceed one year shall be directly included in the current gain and loss as incurred
The costs incurred by the Company for performing the contract, if not within the applicability scope of
relevant standards relating to inventories, fixed assets or intangible assets, can be recognized as an asset within the
contract performance cost if the following conditions are met:
1. The cost is related to a current contract or a contract to be obtained, including direct labor cost, direct
material/manufacture cost (or similar costs), cost to be undertaken by the customer and other costs incurred under
the contract;
2. The cost increases the resources available to the Company to fulfill performance duties in the future;
3. The costs are expected to be recovered.
Assets related to contract cost are amortized on the same basis as recognition of revenue of goods or services
related to the asset and recognized in current gain and loss.
If the book value of assets relating to contract cost is higher than the remaining consideration expected to be
obtained due to the transfer of goods or services relating to the assets minus the estimated cost to be incurred, the
Company accrues impairment reserves for the excess portion and recognizes it as an asset impairment loss. If the
factors causing the impairment of the prior period change and make the remaining consideration expected to be
obtained due to the transfer of goods or services relating to the assets minus the estimated cost to be incurred
higher than the book value of the asset, the withdrew asset impairment provision shall be reversed and recorded in
the current gains or losses, but the book value of the asset after reversion shall not exceed the book value of the
asset at the reversion date under the condition of not withdrawing the impairment provision.
14. Long-term equity investment
1. Judgment of joint control and significant influence
Joint control refers to the shared control over a certain arrangement according to the relevant agreement, and
the activities under such arrangement are subject to approval by the parties sharing the control power. Significant
influence refers to that one party has the power to participate in the decision-making of financial and operating
policies of the investee but is unable to control or jointly control these policies with other parties.
2. Determination of investment cost
(1) For business combination under the same control, where the combining party uses cash payment, transfer
of non-cash assets, assumption of debts or issuing of equity securities as combination consideration, the share of
owner's equity of the combined party acquired in the book value of total owner's equity in consolidated financial
statements of the ultimate controller on the combination date shall be identified as the initial investment cost of
long-term equity investment. The difference between the initial investment cost of long-term equity investment
and the book value of the combination consideration paid or the par value of the issued shares is adjusted against
the capital reserve. If the capital reserve is not sufficient for offsetting, the adjustment is made to retained earnings.
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For the long-term equity investments formed through business combination under the same control] and
implemented through multiple transactions step by step by the Company, it is a must to judge whether they are
“package deals”. If they are package deals, each deal is regarded as a deal to obtain control right for accounting
treatment. If it is not a package deal, on the date of combination, the share of the book value of net assets of the
combined party that should be enjoyed after combination in the consolidated financial statements of the ultimate
controller, is recognized as an initial investment cost. The difference between the initial investment cost of long-
term equity investment on the date of combination and the sum of the book value of long-term equity investment
before the combination is realized and the book value of consideration additionally paid to further acquire shares
on the date of combination is adjusted against the capital reserve. If the capital reserve is not sufficient for
offsetting, the adjustment is made to retained earnings.
(2) As for business combinations not under the same control, the fair value of the combination consideration
paid on the combination date is recorded as the initial investment cost of long-term equity investment.
For the long-term equity investments formed through business combination not under the same control and
implemented through multiple transactions step by step by the Company, the accounting treatment is different in
unconsolidated financial statements and consolidated financial statements:
1) In individual financial statements, the initial investment cost of long-term equity investment accounted
using the cost method is measured at the sum of the book value of equity investment originally held and
investment cost additionally paid.
2) In consolidated financial statements, it is a must to judge whether they are “package deals”. If they are
package deals, each deal is regarded as a deal to obtain control right for accounting treatment. Suppose these
transactions are not "package deals", the equities of the acquiree held before the purchase date shall be re-
measured at fair value at the purchase date. The difference between the fair value and its book value shall be
recognized as current investment income. In case the equity of the acquiree held before the purchase date involves
other comprehensive income under the equity method, relevant other comprehensive income shall be transferred
to the current return on the purchase date, Except for other comprehensive income resulting from the re-
measurement of the investee's net defined benefit plan liabilities or changes in net assets.
(3) Except for the formation of business combination: As for those obtained by cash payment, the actually
paid purchase price is taken as the initial investment cost; the long-term equity investment formed by issuing
equity securities, the fair value of issuing equity securities is taken as the initial investment costs. If acquired
through debt restructuring, its initial investment cost shall be determined in accordance with the Accounting
Standards for Business Enterprises No. 12—Debt Restructuring; in the case of non-monetary asset exchange, the
initial investment cost shall be determined in accordance with the Accounting Standards for Business Enterprises
No. 7—Exchange of Non-monetary Assets.
3. Methods for subsequent measurement and gain and loss recognition
The long-term equity investment in the invested entity under its control will be accounted for through the
cost method; long-term equity investment in associated enterprises and joint ventures is accounted for under the
equity method.
4. Treatment methods for investments in subsidiaries through multiple deals step by step until control
losing
(1) Individual financial statements
For disposal of equity, the difference between book value and the actual price of the acquisition shall be
recorded into current gain and loss. For the remaining equity, if the investor still has significant influence over the
investee or imposes joint control with other parties, it is accounted for by the equity method; In case of failure to
control, jointly control or significantly influence the investee, it shall be calculated in accordance with the
provisions of the Accounting Standards for Business Enterprises No. 22—Recognition and Measurement of
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Financial Instruments.
(2) Consolidated financial statements
1) Investments in subsidiaries through multiple deals step by step until control losing and not belonging to
“package deals.”
Before losing control, the capital reserves (capital premium) are adjusted at the difference between the
disposal cost and the share in net assets of subsidiaries calculated continuously from the acquisition date or
combination date corresponding to the disposal of long-term equity investment; if the capital premium is not
sufficient to be offset, retained earnings are offset.
When losing control over a former subsidiary, the remaining equity is re-measured at the fair value on the
date of control loss. The balance of the sum of the consideration received through the disposal of equity and the
fair value of the remaining equity after deducting the entitled share of net assets continuously calculated at the
original shareholding ratio from the purchase date or the date of combination in the subsidiary is recognized in the
investment income for the period during which the control is lost, and is written off against goodwill. Other
comprehensive income related to equity investment in the former subsidiary is transferred into return on
investment for the period during which the control is lost.
2) Investments in subsidiaries through multiple deals step by step until control losing and belonging to
“package deals.”
Each deal is considered as a deal for the disposal of the subsidiary and losing control of accounting treatment.
However, the difference between the disposal cost of each deal before losing the control and the entitled share of
net assets of the subsidiary corresponding to the disposal investment is recognized as other comprehensive income
in consolidated financial statements, and when the control is lost, transferred together into gain and loss for the
period during which the control is lost.
15. Investment properties
Measurement model of investment properties
Measurement by the cost method
Depreciation or amortization methods
1. Investment properties of the Company include the land use rights leased and held for sale after
appreciation, and leased buildings.
2. Investment properties are initially measured by cost and subsequently measured by the cost model, with its
depreciation or amortization conducted by the same methods for fixed assets and intangible assets.
16. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for production, service, lease or operation with a service life of more
than one accounting year. Fixed assets can be recognized only when related economic benefits are very likely to
flow into the Company, and their costs can be measured reliably.
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(2) Depreciation method
Depreciable Residual Annual
Category Depreciation method
life (years) value rate depreciation rate
Housing and buildings Straight-line depreciation method 5-30 5 or 10 19.00-3.00
Machinery and equipment Straight-line depreciation method 10-15 5 or 10 9.50-6.00
Transportation facilities Straight-line depreciation method 4-5 5 or 10 23.75-18.00
Other equipment Straight-line depreciation method 3-10 5 or 10 31.67-9.00
17. Construction in progress
The Company shall comply with the disclosure requirements for the chemical industry as set forth in the Self-
Regulatory Guidelines for Listed Companies on Shenzhen Stock Exchange No. 3 — Industry Information
Disclosure
1. Construction in progress is able to be recognized only when related economic benefits are very likely to
flow into the Company, and its costs can be measured reliably. Construction in progress is measured at the actual
cost incurred before such asset is ready for the intended use.
2. Construction in progress is carried forward to fixed assets based on actual costs of the project when it is
ready for its intended use. As for construction in progress which is ready for the intended use but has not gone
through the formalities of final accounts of completion, it shall be transferred into fixed assets at the estimated
value. Upon the final accounts of completion, the previous tentatively estimated value other than accrued
depreciation shall be adjusted based on actual costs.
18. Borrowing costs
1. Recognition principle of the capitalization of borrowing costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of a qualifying asset for capitalization, it shall be capitalized and recognized as costs of
relevant assets; Other borrowing costs shall be recognized as an expense when they are incurred and included in
current gain and loss.
2. Capitalization period of borrowing costs
(1) Capitalization begins when the borrowing cost meets the following conditions: 1) asset expenditure has
been incurred; 2) the borrowing costs have been incurred; 3) the acquisition, construction or production activities
necessary to bring the asset to its intended use or sales have been initiated.
(2) Where the acquisition and construction or production process of assets eligible for capitalization are
interrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of the
borrowing costs shall be suspended. The borrowing costs incurred during such period shall be recognized as
expenses of the current period until the asset's acquisition and construction or production activity restarts.
(3) When the assets acquired, constructed or produced qualified for capitalization conditions are ready for
intended use or sales, the capitalization of the borrowing costs shall be ceased.
3. Capitalization rate and amount of borrowing costs
In case of special borrowing for the acquisition & construction or production of assets eligible for
capitalization conditions, interest income to be capitalized shall be recognized after deducting the bank interests
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for the unused portion or the investment income for short-term investment from the interest costs (including
recognized depreciation or amortization of premium under effective interest method) actually occurred in the
current period of specific borrowing. Where a general borrowing is used for the acquisition, construction, or
production of assets eligible for capitalization, it shall determine the capitalization amount of interests on the
general borrowing by multiplying the weighted average asset expenses of the part of the accumulative asset
expenses minus the special borrowings by the capitalization rate of the general borrowings used.
19. Intangible assets
(1) Pricing method, service life, and impairment test
1. Intangible assets include land use rights, patent rights and non-patented technology and so on, which are
initially measured according to cost.
2. Any intangible asset with a limited service life shall be amortized in a systematic and rational manner
based on the expected realization method of economic benefits related to it within its service life; where the
expected realization method cannot be confirmed reliably, the straight-line method shall be adopted.
Details are as follows:
Item Amortization period (year)
Land-use right 15-50
Know-how 6-10
Management software 5-10
Pollution dumping right 5-20
Sea area use right 1-50
(2) Internal R&D expenditure accounting policy
The expenditure in the research stage of internal research and development projects is included in the current
gain and loss. The expenditures incurred during the development of an internal R&D project shall be recognized
as intangible assets if they simultaneously meet the following conditions: (1) It is technically feasible to complete
the intangible assets so that they can be used or sold; (2) it is intended to finish and use or sell the intangible assets;
(3) the ways for intangible assets to generate economic benefits shall be proven useful, including the way to prove
that there is a potential market for the products manufactured with the intangible assets or there is a potential
market for the intangible assets or the intangible assets will be used internally; (4) enough technical and financial
resources and other resources are available to support the development of such intangible assets, and the Company
is able to use or sell such intangible assets; (5) the expenses incurred from developing the intangible asset can be
reliably measured.
20. Impairment of some long-term assets
Long-term assets such as long-term equity investment, investment properties measured by the cost model,
fixed assets, construction in progress, right-of-use assets and intangible assets with limited service lives shall be
evaluated for their recoverable amount in case of any sign of impairment at the balance sheet date. For goodwill
formed by business combination and intangible assets with uncertain service life, an impairment test should be
carried out every year regardless of whether there is a sign of impairment. Goodwill impairment testing must be
done in combination with the asset group or asset group portfolio to which it is linked.
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Where the recoverable amount of asset is lower than its book value, the Company shall recognize the
provision for asset impairment based on the difference and recognize such loss into the current gains and losses.
21. Long-term deferred expenses
Long-term deferred expenses refer to all expenses that have been paid and have an amortization period of
more than one year (excluding one year). Long-term deferred expenses are recorded at the actual incurred amount
and amortized on an average basis by stages over the beneficial period or prescribed period. In case that long-term
deferred expense items cannot benefit the future accounting periods, the amortized value of such unamortized
items shall be fully transferred into the current gain and loss.
22. Contract liabilities
The Company presents contract assets or liabilities in the balance sheet based on the relation between
performance obligation and customer payment. The Company will record the net amount of contract assets and
contract liabilities under the same contract after they are set off against each other.
The Company presents the obligation to transfer goods to the customer for considerations received or
receivable from the customer as a contract liability.
23. Employee remuneration
(1) Accounting treatment method for short-term remuneration
1. Employee remuneration includes short-term remuneration, post-employment benefits, dismissal benefits
and other long-term employee benefits.
2. Accounting treatment method for short-term remuneration
The actual short-term remuneration in the accounting period when employees offer services for the Company
will be recognized as liabilities and included in current gain and loss or relevant asset cost.
(2) Accounting treatment method of post-employment benefits
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) During the accounting period when an employee provides services to the Company, the amount to be
deposited according to the defined contribution plan shall be recognized as the liability and recorded into the
current gain and loss or the cost of the relevant assets.
(2) The accounting treatment for a defined benefit plan generally includes the following steps:
1) In accordance with the projected unit credit method, demographic and financial variables are estimated
using unbiased and consistent actuarial assumptions, the obligations arising from the defined benefit plan are
measured, and the period for the relevant obligation is determined. In the meantime, the obligations arising from
the defined benefit plan are discounted to determine the present value and current cost of service of the defined
benefit plan.
2) Where the defined benefit plan involves any assets, the deficit or surplus resulting from the present value
of obligations in the defined benefit plan minus the fair value of assets shall be recognized as net liabilities or net
assets of the defined benefit plan. Where the defined benefit plan has any surplus, the Company will measure the
net assets of the defined benefit plan based on the surplus or asset limit of the defined benefit plan (whichever is
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the lower);
3) At the end of the period, the Company shall recognize the cost of employee remuneration as cost of
service, the net interest of net liabilities or net assets of the defined benefit plan and changes arising from the re-
measurement of net liabilities or net assets of the defined benefit plan, in which the cost of service and net interest
of net liabilities or net assets of the defined benefit plan are recorded in the current gain and loss or relevant asset
cost, changes arising from the re-measurement of net liabilities or net assets of the defined benefit plan are
recorded in other comprehensive incomes and is not allowed to be carried back to gains or losses during the
subsequent accounting period, but the amounts recognized in other comprehensive incomes can be transferred
within the equity scope.
(3) Accounting treatment method for dismissal benefits
Where dismissal benefits are provided to employees, liabilities in employee remuneration are recognized and
included in the current gain and loss when: (1) the Company is not in a position to unilaterally withdraw dismissal
benefits provided under termination plans or layoff proposals; (2) when the Company recognizes the costs or
expenses related to restructuring involving the payment of dismissal benefits.
(4) Accounting treatment method for other long-term employee benefits
Where the Company provides other long-term employee benefits for its employees and the employee reaches
the conditions of the defined benefit plan, accounting treatment shall be adopted based on relevant provisions of
the defined benefit plan. For long-term employee benefits other than the aforesaid ones, the accounting treatment
should be conducted in accordance with relevant provisions of the defined benefit plan. In order to simplify
relevant accounting treatments, the employee remuneration cost resulting from other long-term employee benefits
shall be recognized as cost of service, the total net amount of component items, including net interest of net
liabilities or net asset of other long-term employee benefits, as well as changes arising from re-measurement of net
liabilities or net asset of other long-term employee benefits and so on, is recorded in current gain and loss or
relevant asset cost.
24. Revenue
1. Revenue recognition principle
The Company assesses the contract from the commencement date of the contract and recognizes each
individual performance obligation included by the contract, and determines whether each individual performance
obligation will be fulfilled during a certain period or at a certain time point.
It will constitute performance of the obligation in a certain period of time if any of the following conditions
are met; otherwise it will constitute performance of obligation at a certain time point: (1) the customer obtains and
consumes economic benefits arising from contract performance by the Company; (2) the customer can control
goods in progress during the process of contract performance by the Company; (3) goods arising from contract
performance by the Company have irreplaceable purposes, and the Company is entitled to receive payment for
accumulatively completed performance proportion to date throughout the contract term.
If the performance obligations are performed within the specified period, the Company will recognize the
income within this period in accordance with the progress of the contract's performance. If the performance
progress cannot be determined reasonably and the costs incurred are expected to be compensated, the income will
be recognized according to the costs incurred until the performance progress is determined reasonably. If the
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performance obligations are performed at a time point, the Company will recognize the income at the time when
the customer obtains control power over goods or services. When judging whether the customer has already
obtained the right of control over goods, the Company shall consider the following items: (1) the Company has
the right to receive payment currently; namely, the customer assumes the obligation of making payment currently
in regards to the goods; 2) the Company has already transferred the legal ownership of the goods to the customer;
namely, the customer has already obtained the legal ownership of such goods; 3) the Company has already
transferred the material object of the goods to the customer, namely the customer has already obtained such goods
in the material object; 4) the Company has already transferred the significant risk and consideration of the
property in the goods to the customer, namely, the customer has already obtained the significant risk and
consideration of the property in the goods; (5) the customer has accepted such goods; (6) other signs that indicate
the customer has already obtained the control over goods.
2. Revenue measurement principles
(1) The income shall be measured by the Company according to the transaction price apportioned to each
single performance obligation. Transaction price refers to the amount of consideration the Company expects to
receive for the transfer of goods or services to the customer, but it does not include payments received on behalf
of the third party or funds to be returned to the customer.
(2) In case of variable consideration in contract, the Company will determine the best estimate of variable
consideration in line with the expected or most possible amount, but the transaction price that contains variable
consideration will not exceed the amount of accumulated recognized income that is least likely to be reversed
when relevant uncertainties are removed.
(3) If there is significant financing in the contract, the Company shall determine the transaction price
according to the amount payable in cash when the client obtains control of the goods or services. The difference
between the transaction price and contract consideration is amortized by the effective interest method during the
term of the contract. On the contract commencement date, if the Company estimates that the time between the
customer's acquisition of control over goods or services and the payment of the price by the customer will not
exceed one year, the significant financing in the contract shall not be considered.
(4) If there are two or more performance obligations in the contract, at the beginning of the contract, the
Company shall allocate the transaction price to each separate performance obligation according to the relative
proportion of the stand-alone selling price of the goods promised by each performance obligation.
3. Specific methods for revenue recognition
The Company mainly sells oil refining products, chemical products, PTA, polyester chip, polyester yarn and
film, and so forth, fulfilling its performance obligation at a certain time point. Proceeds from domestic sales are
recognized when the Company has delivered the products to the buyer, the amount of product sales revenue has
been determined, the payment for goods has been recovered, or the collection voucher has been obtained, and the
relevant economic benefits are likely to flow in. Proceeds from overseas market sales are recognized when the
Company has declared the products at the customs and obtained the bill of lading according to the contract, the
amount of product sales revenue has been determined, the payment for goods has been recovered, or the collection
voucher has been obtained, and the relevant economic benefits are likely to flow in.
25. Government grants
1. Government grants are recognized when both of the following conditions are met: (1) the Company is able
to meet the conditions attached to the government grants; (2) the Company can receive government grants. In the
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case of a monetary asset, the government subsidies shall be measured according to the amount received or accrued.
In the case of a non-monetary asset, the government grants shall be measured at fair value; where the fair value
cannot be reliably obtained, it shall be measured in accordance with the nominal amount.
2. Judgment basis and accounting method for asset-related government grants
Government grants or subsidies that are required by government documents to be used for the acquisition or
other formation of long-term assets are classified as asset-related government grants. If the government
documents are not clear, judgment shall be made on the basis of the basic conditions that must be met to obtain
the grants, and those that are based on the acquisition, construction or other formation of long-term assets are
treated as asset-related government grants. Government grants relating to the assets are either written off against
the book value of the relevant assets or recognized as deferred income. The government grants recognized as
deferred income shall be recorded in the gain and loss on a reasonable and systematic basis over the service life of
relevant assets. The government grants measured according to notional amount shall be directly included in
current gain and loss. If the relevant asset has been sold, transferred, retired or damaged before the end of the
service life, the balance of the relevant deferred income that has not been allocated will be transferred into the
current gain and loss of asset disposal.
3. Judgment basis and accounting method for income-related government grants
Government grants other than those related to assets will be classified into income-related government grants.
For government grants that include both the asset-related and the income-related components, it is difficult to
distinguish between government grants that are asset-related or income-related and such grants are generally
classified as asset-related. Income-related government grants of the Company are used for compensation for
relevant costs & expenses or losses in subsequent periods, which are recognized as deferred income, and recorded
in current gain and loss or offset against relevant costs in the period of recognition of relevant costs, expenses or
losses. Government grants for compensation for incurred relevant costs and expenses or losses are directly
included in current gain and loss or offset against relevant costs.
4. The government grants related to the daily business activities of the Company shall be recorded into other
incomes or written down related costs and expenses according to the economic and business nature. Government
grants not related to the daily activities of the Company are recorded in non-operating incomes and expenses.
5. Accounting treatment method for policy-based preferential loans with discounted interest
(1) Where the Treasury disburses the discount interest funds to the lending bank, and the lending bank
provides loans to the Company at preferential policy interest rates, the Company shall use the actual amount of
loans received as the entry value, and calculate the borrowing costs based on the principal and the preferential
policy interest rate.
(2) If the Treasury allocates the discount interest funds directly to the Company, the discount interest will be
used to offset the borrowing costs.
26. Deferred tax assets/deferred tax liabilities
1. Depending on the difference between the book value and the tax base of assets or liabilities (the difference
between the tax base and the book value if the tax base of items not recognized as assets or liabilities can be
determined based on tax laws), the deferred income tax assets or deferred income tax liabilities shall be calculated
and recognized based on the applicable tax rate during the expected asset recovery or liability settlement period.
2. Deferred income tax assets shall be recognized to the extent of probable taxable income used for deducting
temporary deductible difference. On the balance sheet date, if there is concrete evidence indicating that it is likely
to obtain enough taxable income in the future to offset temporary deductible difference, the deferred income tax
assets that were not recognized in previous accounting periods should be recognized.
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3. At the balance sheet date, the Company should recheck the book value of deferred income tax assets. If it
is unlikely to obtain enough taxable income to offset gains generated from the deferred income tax assets, then it
is necessary to write down the book value of deferred income tax assets. If it is likely to obtain enough taxable
income, the deducted amount shall be recovered.
4. The current income taxes and deferred income taxes of the Company are recorded as income tax expense
or income in the current gains or losses, excluding income taxes arising from: (1) business combination; (2)
transactions or events recognized directly in owner's equity.
27. Lease
1. The Company as lessee
On the commencement date of the lease term, the Company recognizes the lease with a lease term of no more
than 12 months and without the purchase option as a short-term lease; and recognizes the lease with lower value
when a single leased asset is brand new as a low-value asset lease. In case of a sublease or expected sublease of
lease asset, the original lease will not be deemed as a low-value asset lease.
For all short-term leases and low-value asset leases, the Company will recognize the lease payment in the
relevant asset cost or current gain and loss under the straight-line method during each period of the lease term.
In addition to the above short-term leases and low-value asset leases under simplified treatment, the
Company recognizes the right-of-use assets and lease liabilities for the lease on the commencement date of the
lease term.
(1) Right-of-use assets
The right-of-use assets shall be initially measured at cost. The cost includes: 1) the initial measurement
amount of the lease liability; 2. the amount of lease payment made on or before the commencement date of lease
term, net of the relevant amount of used lease incentives (if any); 3. the initial direct expenses incurred by the
lessee; 4) expected cost to be incurred by the lessee for the purpose of disassembly and removal of lease assets,
restoration of the site where leased assets are located or restoration of leased assets to the status as agreed in lease
terms.
The Company will use the straight-line method to calculate the depreciation of the right-of-use assets. Where
it is reasonably certain that the ownership of the leased assets can be obtained at the expiry of the lease term, the
leased assets shall be depreciated by the Company over its remaining service life. Where it is not reasonably
certain that the ownership of the leased assets can be obtained at the time the term of the lease expires, the
Company shall accrue the depreciation within the shorter of the lease period and the remaining service life of the
leased assets.
(2) Lease liabilities
On the commencement date of the lease, the Company recognizes the present value of outstanding lease
payments as lease liabilities. In calculating the present value of the lease payments, the Company adopts the
interest rate embedded in the lease as the discount rate. If the Company is unable to determine the interest rate
embedded in the lease, it will adopt the incremental borrowing rate as the discount rate. The difference between
the lease payment and its present value is treated as unrecognized financing expenses, on which the interest
expenses are recognized at the discount rate of the present value of the lease payment during each period of the
lease term and included in the current gain and loss. The variable lease payments not included in the measurement
of lease liabilities shall be included in current gain and loss when actually incurred.
After the inception of the lease, the Company measures lease liabilities again according to the present value
of the lease payments after the change, and adjusts the book value of the right-of-use asset accordingly in case of
changes in the actual fixed payment amount, the expected payable amount of the guarantee residual value, the
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index or ratio used to determine the lease payment amount, the purchase option, and evaluation result or the actual
exercise situation of the lease renewal option or the termination option. Where the book value of the right-of-use
asset has been reduced to zero, but a further reduction is required for the lease liabilities, the remaining amount
shall be included in the current gain and loss.
2. The Company as lessor
At the inception of the lease, a lease that transfers in substance almost all risks and rewards related to the
ownership of leased assets is classified as a financing lease by the Company. Except for the financing lease, others
are treated as the operating lease.
(1) Operating lease
During each period of the lease term, the Company recognizes the lease receipts as rental income under the
straight-line method, and the initial direct costs incurred are capitalized and amortized on the same basis as the
recognition of rental income, which is included in the current gain and loss by installment. Variable lease
payments the Company acquired in connection with operating leases that are not included in the lease receipts are
recognized in the current gain and loss when actually incurred.
(2) Financing lease
At the inception of the lease, the Company recognizes the financing lease receivables based on the net lease
investment (the sum of the unsecured residual value and the present value of the lease collection not received on
the first date of the lease term and discounted at the interest rate implicit in the lease), and derecognizes the
financing lease assets. During each period of the lease term, the Company calculates and recognizes the interest
income at the interest rate implicit in the lease.
The variable lease payments obtained by the Company that are not included in the measurement of the net
lease investment are included in the current gain and loss when actually incurred.
28. Changes in significant accounting policies and accounting estimates
(1) Significant accounting policy changes
1. The Company has implemented the provisions of Interpretation No.15 of Accounting Standards for
Business Enterprises issued by the Ministry of Finance on the "accounting treatment of external sales of products
or by-products produced by enterprises before the fixed assets reach the intended usable state or during the
research and development process" since January 1, 2022, and the trial operation occurred between the beginning
of the earliest period presented in the financial statements for the first time to January 1, 2022. Details are as
follows:
Statement items significantly affected Amount affected Remark
Balance Sheet Items as at December 31, 2021
Fixed assets 929,145,616.67
Construction in progress 124,206,287.84
Deferred income tax liabilities 249,815,067.53
Undistributed profits 412,507,575.69
Minority shareholders' equity 391,029,261.29
Income Statement Items in 2021
Operating revenue 6,050,652,793.73
Operating cost 4,997,300,889.22
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Income tax expenses 249,815,067.53
2. The Company has implemented the provisions of "Judgment on Loss Contracts" in the Interpretation of
Accounting Standards for Business Enterprises No. 15 since January 1, 2022. Changes in this accounting policy
had no impact on the Company's financial statements.
3. The Company has implemented the provisions of "accounting treatment for the impact of income tax on
dividends related to financial instruments classified as equity instruments by the issuer," in the Interpretation of
Accounting Standards for Business Enterprises No. 16 since November 30, 2022. Changes in this accounting
policy had no impact on the Company's financial statements.
4. The Company has implemented the provisions of Interpretation No.16 of Accounting Standards for
Business Enterprises issued by the Ministry of Finance on the accounting treatment of enterprises changing cash-
settled share-based payment into equity-settled share-based payment since November 30, 2022, and this change in
accounting policy has no impact on the financial statements of the Company.
(2) Changes in significant accounting estimate
□ Applicable √ Not applicable
29. Miscellaneous
(1) Work safety cost
The work safety costs withdrawn by the Company in accordance with the Administrative Measures for the
Collection and Utilization of Enterprise Work Safety Funds (CZ [2022] No. 136) promulgated by the Ministry of
Finance and the Ministry of Emergency Management were charged to the costs of relevant products or current
profits or losses and also to the "special reserve". In the case of using the withdrawn safety production costs, if
they belong to cost expenditure, they shall directly offset the special reserves. Where a fixed asset is formed, the
expenditures incurred shall be collected under the item “Construction in Progress” and shall be recognized as a
fixed asset when the completed security project reaches the intended usable state. Moreover, the special reserves
shall be written down upon the cost of the formed fixed assets, and the accumulated depreciation of the same
amount shall be confirmed, and such fixed assets will not be depreciated in any following period.
(2) Segment report
The Company determines the operating segment on the basis of its internal organizational structure,
management requirements, internal reporting system and so on. Operating segments refer to components within
the Company satisfying all the following conditions:
1) It engages in business activities from which it may earn revenues and incur expenses;
2) The management can evaluate the operating results of such components on a regular basis, so as to decide
to allocate resources to them and evaluate their performance;
3) It has access to accounting information of the component, such as its financial condition, operation result
and cash flow.
VI. Taxes
1. Main tax categories and tax rates
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Tax category Basis of taxation Tax rate
The value-added tax received is calculated on the
basis of sales of goods and taxable service income
Value-added tax calculated according to the tax law. After deducting 13%、9%、6%[Note 1]
the VAT paid allowed for the current period, the
difference is VAT payable.
Excise (consumption) tax Taxable sales (volume) [Note 2]
Urban maintenance and
Actual payment of turnover tax 7%、5%
construction tax
Enterprise income tax Taxable income [Note 3]
The remaining value after deducting 30% from the
original value of the property in one go for ad
Property tax 1.2%、12%
valorem collection; the rental income for rent based
collection.
Education surcharge Actual payment of turnover tax 3%
Local education surcharge Actual payment of turnover tax 2%
[Note 1] VAT is calculated and paid at the tax rate of 13% for goods sold. Rental income and sales of liquefied petroleum gas and
steam shall be subject to VAT at the rate of 9%. Warehousing services and other businesses and interest income shall be subje ct to
VAT at the rate of 6%. The policy of "tax exemption, credit and refund" is implemented for export goods, and the export tax r ebate
rate is 13%.
[Note 2] Sales of fuel oil, diesel and aviation kerosene are subject to consumption tax at RMB 1.2/liter. Sales of gasoline and naphtha
are subject to consumption tax at RMB 1.52/liter.
[Note 3] Explanation for enterprise income tax rate of taxpayers at different tax rates.
Name of taxpayer Income tax rate
Subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd., Ningbo Zhongjin
Petrochemical Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Zhejiang Petroleum & 15%
Chemical Co., Ltd., Zhejiang Yongsheng Technology Co., Ltd.
Subsidiaries Hong Kong Sheng Hui Co., Ltd., Hong Kong Yisheng Dahua
The tax shall be calculated and paid
Petrochemical Co., Ltd., Yisheng New Materials Trading Co., Ltd., Rongsheng
according to the relevant tax rates of the
Petrochemical (Singapore) Private Co., Ltd., Rongtong Logistics (Singapore) Private
country and region where the business is
Co., Ltd., Rongsheng Petrochemical (Hong Kong) Co., Ltd. and Zhejiang Petroleum &
located.
Chemical (Singapore) Private Co., Ltd.
Subsidiaries Rongxiang Chemical Fiber Co., Ltd., ZPC Jintang Logistics Co., Ltd.,
Rongsheng International Trade (Hainan) Co., Ltd., Dalian Zhejiang Yisheng New
20%
Materials Co., Ltd. and Zhejiang Rongyi Trading Co., Ltd., Rongsheng Chemical
(Shanghai) Co., Ltd.
Other taxpayers other than the above 25%
2. Tax preference
1. According to requirements in the Notice on the Continuation of the Policy of Partial Consumption Tax on
Naphth and Fuel Oil by the Ministry of Finance, People's Bank of China and State Taxation Administration (No.
87 [2011] of the Ministry of Finance), the Notice on Improving the Tax Refund Policy of Consumption Tax for
Ethylene Aromatic Chemical Products from Naphth and Fuel Oil by the Ministry of Finance, People's Bank of
China, General Administration of Customs and State Taxation Administration (No. 2 [2013] of the Ministry of
Finance), the Interim Measures for the Refund (Exemption) of Consumption Tax for Naphth and Fuel Oil Used in
the Production of Ethylene and Aromatic Chemical Products by the State Taxation Administration
(Announcement of the State Administration of Taxation No. 36 of 2012) and the Announcement on the Refund of
Consumption Tax for Ethylene and Aromatic Chemical Products from Naphth and Fuel Oil by the State
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Administration of Taxation and General Administration of Customs (Announcement No. 29 of 2013 of the State
Administration of Taxation and the General Administration of Customs), in the case that the production enterprise
implementing the fixed-point direct supply plan and selling naphth and fuel oil within the planned quantity limit,
with a Chinese anti-counterfeiting special VAT invoice with "DDZG" logo, it shall be exempted from
consumption tax. The subsidiaries Ningbo Zhongjin Petrochemical Co., Ltd. and Zhejiang Petroleum & Chemical
Co., Ltd. are qualified for the tax refund, and the preferential policy of refunding consumption tax paid in the
procurement stage is applicable. The subsidiaries Ningbo Zhongjin Petrochemical Co., Ltd. and Zhejiang
Petroleum & Chemical Co., Ltd. implementing the fixed-point direct supply plan meet the above conditions, and
the preferential policy of exemption from consumption tax on the sales stage is applicable.
According to the requirements of the Notice on Continuing the Increase of Refined Oil Consumption Tax by
the Ministry of Finance and State Administration of Taxation (No. 11 [2015] of the Ministry of Finance), the unit
consumption tax of diesel, aviation kerosene and fuel oil increase from RMB 1.1/L to RMB 1.2/L, and suspension
of consumption tax continues to apply in aviation kerosene. The subsidiary Zhejiang Petroleum & Chemical Co.,
Ltd. enjoys the preferential policy of suspension of consumption tax for selling aviation kerosene.
2. According to the document Announcement of the Ministry of Finance and the State Taxation Administration
on Further Strengthening the Implementation of Policies Regarding Period-End Value-Added Tax Credit Refund
(Announcement No. 14 [2022] of the Ministry of Finance and the State Administration of Taxation) jointly issued
by the Ministry of Finance and the State Administration of Taxation, some subsidiaries of the Company meet the
relevant conditions for the tax credit refund, and the total amount of tax credit refund received in the current
period is RMB 13,503.6159 million.
3. According to the Announcement on Filing of High-tech Enterprises Recognized by Zhejiang Provincial
Accreditation Institutions in 2022 issued by the Office of the National High-tech Enterprise Accreditation
Management Leading Group, subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd. and Zhejiang Petroleum
& Chemical Co., Ltd. have passed the high-tech enterprise accreditation and obtained the High-tech Enterprise
Certificate numbered GR202233004307 and GR202233003797 respectively. The validity period of the
recognition is 2022-2024, and the enterprise income tax is calculated and paid at a reduced rate of 15% in the
current period.
According to the Announcement on Filing the Third Batch of High-tech Enterprises Recognized by Dalian in
2021 issued by the Office of the National High-tech Enterprise Recognition Management Leading Group, the
subsidiary Yisheng Dahua Petrochemical Co., Ltd. passed the high-tech enterprise accreditation and obtained the
High-tech Enterprise Certificate with the number of GR202121200832, which is valid from 2021 to 2023. The
enterprise income tax shall be calculated and paid at the reduced tax rate of 15% in this period.
According to the Announcement on Filing the First Batch of High-tech Enterprises Recognized by Ningbo
City Authority in 2022 issued by the Office of the National High-tech Enterprise Recognition Management
Leading Group, Ningbo Zhongjin Petrochemical Co., Ltd., a subsidiary, has passed the high-tech enterprise
accreditation and obtained the High-tech Enterprise Certificate with the number of GR202233101251, with the
validity period of 2022-2024. The enterprise income tax is calculated and paid at the reduced tax rate of 15% in
the current period.
According to the Announcement on the Filing of the First Batch of High-tech Enterprises Recognized in
Zhejiang Province in 2021 issued by the Office of the National High-tech Enterprise Recognition Management
Leading Group, Zhejiang Yongsheng Technology Co., Ltd., a subsidiary, has passed the recognition of a high-
tech enterprise and obtained the "High tech Enterprise Certificate" with the number GR202133009456. The
recognition period is from 2021 to 2023, and the enterprise income tax is calculated and paid at a reduced rate of
15% in this period.
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4. According to the Notice On Issues Related to the Implementation of the Preferential Catalogue of
Enterprise Income Tax for Special Equipment of Environmental Protection, the Preferential Catalogue of
Enterprise Income Tax for Special Equipment of Energy and Water Conservation and the Preferential Catalogue
of Enterprise Income Tax for Special Equipment of Work Safety (No. 48 [2008] of the Ministry of Finance), for
the special equipment purchased by the Company that can be used for environmental protection, energy and
water conservation, safe production and other purposes, the enterprise income tax payable of the current year can
be deducted by 10% of the equipment investment. If the tax payable of the enterprise in the current year is
insufficient for credit, it can be carried forward to the next year, and the carryforward period shall not exceed five
tax years. The subsidiary Zhejiang Petroleum & Chemical Co., Ltd. has special equipment that can be used for
environmental protection, energy and water conservation and safe production, which is qualified for the
preferential policy of 10% of the investment to credit the taxable income of the enterprise income tax in the
current year.
5. According to requirements of Article 2 in the Notice of the Ministry of Finance and the State
Administration of Taxation on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and
Small Enterprises (No. 13 [2019] of the Ministry of Finance), If the annual taxable income of small low-profit
enterprises does not exceed RMB 1 million (inclusive), it shall be included in the taxable income at the reduced
rate of 25%, and the enterprise income tax shall be paid at the tax rate of 20%. For the part with an annual taxable
income exceeding RMB 1 million but not exceeding RMB 3 million, 50% thereof is included in the payable
income, and the enterprise income tax is paid at the tax rate of 20%.
According to the requirements of the Announcement on the Implementation of Preferential Income Tax
Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households (Announcement
No. 12 [2021] of the Ministry of Finance and the State Taxation Administration), for the part of small low-profit
enterprises' annual taxable income not exceeding RMB 1 million, the enterprise income tax shall be further half-
reduced on the basis of the preferential policy stipulated in Article 2 of the Notice of the Ministry of Finance and
the State Taxation Administration on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro
and Small Enterprises (No. 13 [2019] of the Ministry of Finance).
According to the requirements of the Announcement on the Further Implementation of Preferential Income
Tax Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households
(Announcement No. 13 [2021] of the Ministry of Finance and the State Taxation Administration), from January 1,
2022 to December 31, 2024, for small and micro enterprises with an annual taxable income exceeding RMB 1
million but not exceeding RMB 3 million, the enterprise income tax shall be further reduced by 25%, and the
enterprise income tax shall be paid at the tax rate of 20%. Subsidiaries Rongxiang Chemical Fiber Co., Ltd.
Rongsheng International Trade (Hainan) Co., Ltd., Dalian Yisheng New Material Co., Ltd., Zhejiang Rongyi
Trade Co., Ltd. and Rongsheng Chemical (Shanghai) Co., Ltd. meet the above requirements in this period.
6. According to the Implementation Opinions of the Office of the People's Government of Xiaoshan District,
Hangzhou on Deepening the Reform of "Heroes per Mu" and Promoting High Quality Development (X. Z. B. F.
[2020] No. 38), Class A enterprises can enjoy 100% reduction and exemption of land use tax. The Company and
its subsidiary, Zhejiang Shengyuan Chemical Fiber Co., Ltd., meet the requirements of the above preferential tax
policies, and are fully exempt from land use tax in this period.
7. According to the provisions of Several Opinions of the General Office of Zhejiang Provincial People's
Government on Deepening the Reform of Optimal Allocation of Resource Elements in Manufacturing Enterprises
(ZZBF [2019] No.62) issued by the General Office of Zhejiang Provincial People's Government, taxpayers in
manufacturing industry within the whole province (including Ningbo City) shall uniformly implement a classified
and graded urban land use tax reduction policy. Before December 31, 2022, The urban land use tax for Class A
and Class B enterprises shall be reduced by 100% and 80%, respectively. Zhejiang Yongsheng Technology Co.,
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Ltd., a subsidiary, was assessed as a Class B enterprise, with 80% urban land use tax reduced or exempted in this
period.
8. According to Article 6 of the Provisional Regulations of the People's Republic of China on Real Estate
Tax (Guo Fa [1986] No.90), if taxpayers really have difficulties in paying taxes, they may be determined by the
people's governments of provinces, autonomous regions and municipalities directly under the Central Government
to reduce or exempt the real estate tax on a regular basis. After approval and confirmation, the Company has
reduced the property tax by 60% in this period.
9. According to the Announcement of the Ministry of Finance and the State Administration of Taxation on
Further Implementing the Reduction and Exemption Policy of "Six Taxes and Two Fees" for Small and Micro
Enterprises (Announcement No.10 [2022] of the Ministry of Finance and the State Administration of Taxation),
the urban maintenance and construction tax, real estate tax, urban land use tax, stamp duty (excluding stamp duty
on securities transactions), cultivated land occupation tax, education surcharge and local education surcharge of
eligible small and micro enterprises may be reduced by 50% of the tax amount. Subsidiaries Rongsheng
International Trade (Hainan) Co., Ltd., Dalian Yisheng New Material Co., Ltd., Zhejiang Rongyi Trading Co., Ltd.
and Rongsheng Chemical (Shanghai) Co., Ltd. meet the above preferential tax policy requirements, and will be
subject to half of the urban maintenance and construction tax, education surcharge, and local education surcharge
in this period; Subsidiaries Zhejiang Rongyi Trading Co., Ltd. and Rongsheng Chemical (Shanghai) Co., Ltd.
meet the requirements of the above preferential tax policies, and stamp duty will be reduced by half in this period.
10. According to the Announcement of the Ministry of Finance, the State Administration of Taxation and the
Ministry of Science and Technology on Strengthening the Pre-tax Deduction for Supporting Scientific and
Technological Innovation (Announcement No.28 [2022] of the Ministry of Finance, the State Administration of
Taxation and the Ministry of Science and Technology), the equipment and appliances newly purchased by high-
tech enterprises during the period from October 1, 2022 to December 31, 2022 are allowed to be deducted in full
amount at one time in the calculation of taxable income in the current year, and 100% is allowed to be deducted
before tax. Subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd.,
Zhejiang Petroleum & Chemical Co., Ltd. and Zhejiang Yongsheng Technology Co., Ltd. enjoy the above tax
incentives, with an additional deduction for the original book value of newly purchased equipment and
instruments.
VII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 947,398.91 1,563,293.44
Bank deposit 14,971,568,361.00 14,060,975,134.33
Other monetary funds 3,266,258,620.30 3,619,104,987.52
Total 18,238,774,380.21 17,681,643,415.29
Including: Total amount of overseas deposits 2,459,323,215.90 2,759,160,520.29
Other notes:
Among other monetary funds at the end of the period, RMB 965.3075 million is the deposit made for
issuing bank acceptance bills, RMB 980.2853 million is the deposit made for issuing letters of credit, RMB
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552.3772 million is the deposit made for issuing the letter of guarantee, RMB 26.7582 million is the deposit
made for silver leasing, RMB 250 million is the deposit made for handling bank loans, RMB486.764 million is
the investment funds and RMB 4.7664 million is the deposit interest accrued based on the effective interest rate
method at the end of the period.
2. Trading financial assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through current gain and loss 188,283,362.49 345,151,994.32
Including: derivative financial assets 188,283,362.49 345,151,994.32
Total 188,283,362.49 345,151,994.32
3. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: RMB
Ending balance Beginning balance
Bad-debt Bad-debt
Book balance Book balance
provision provision
Category Perce Book Perce Book
Prop ntage value Prop ntage value
Amount ortio Amount of Amount ortio Amount of
n provi n provi
sion sion
Accounts
receivable with
7,257,160, 100. 129,149, 1.78 7,128,011 5,527,285 100. 116,171, 2.10 5,411,114
provision for bad
866.85 00% 819.82 % ,047.03 ,482.39 00% 482.34 % ,000.05
debt reserves based
on aging portfolio
7,257,160, 100. 129,149, 1.78 7,128,011 5,527,285 100. 116,171, 2.10 5,411,114
Total
866.85 00% 819.82 % ,047.03 ,482.39 00% 482.34 % ,000.05
Provision made for bad debt reserves based on aging portfolio：130,059,382.32
Unit: RMB
Ending balance
Name
Book balance Bad-debt provision Percentage of provision
Trade fund portfolio of
5,453,573,146.55 36,709,348.59 0.67%
overseas subsidiaries
Aging portfolio 1,803,587,720.30 92,440,471.23 5.13%
Total 7,257,160,866.85 129,149,819.82
For provision for bad debt reserves of the accounts receivable by the general model of the expected credit loss,
relevant information on bad debt reserves is disclosed based on the disclosure method of other receivables:
Disclose according to aging
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Unit: RMB
Aging Book balance
Within 1 year (inclusive of 1 year) 7,214,189,761.39
1-2 years 42,530,303.66
2-3 years 405,988.15
Above 3 years 34,813.65
Total 7,257,160,866.85
(2) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RMB
The amount of change in the current period
Beginning Ending
Category Recovered or
balance Provision Write-off Others balance
returned
Provision made for bad
debt reserves based on 116,171,482.34 12,978,337.48 129,149,819.82
aging portfolio
Total 116,171,482.34 12,978,337.48 129,149,819.82
(3) Accounts receivable of top 5 ending balances collected by debtors
Unit: RMB
Ending balance of
Ending balance of Proportion in a total ending
Company name provision for bad
accounts receivable balance of accounts receivable
debts
GLENCORE SINGAPORE PTE LTD 1,407,943,521.01 19.40%
TRAFIGURA PTE LTD 1,062,466,761.50 14.64%
VITOL ASIA PTE LTD 839,786,085.62 11.57%
BP SINGAPORE PTE. LIMITED 480,702,902.68 6.62%
MERCURIA ENERGY TRADING PTE.
398,015,890.11 5.48%
LTD
Total 4,188,915,160.92 57.71%
4. Receivables financing
Unit: RMB
Item Ending balance Beginning balance
Banker's acceptance 187,298,909.35 357,547,507.32
Total 187,298,909.35 357,547,507.32
5. Advance payments
(1) Advance payments presented by age
Unit: RMB
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Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 2,522,481,841.45 98.61% 3,637,221,467.16 99.09%
1-2 years 35,638,283.54 1.39% 33,460,693.65 0.91%
Total 2,558,120,124.99 3,670,682,160.81
(2) Top five payers with the biggest ending balances of advance payments
Proportion in balance of
Company name Book balance
advance payments (%)
Zhenhai China Customs 1,372,606,322.40 53.66
CNOOC TRADING (SINGAPORE) PTE. LTD 193,889,241.89 7.58
Dalian Fujia Dahua Petrochemical Co., Ltd. 133,298,972.19 5.21
CHIMET SPA 96,655,476.80 3.78
Liaoyang Branch of Northeast -China Chemical Sales 64,253,868.89 2.51
Company of PetroChina Company Limited
Subtotal 1,860,703,882.17 72.74
6. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Dividends receivable 434,500,000.00
Other receivables 4,262,221,292.97 2,990,086,902.89
Total 4,262,221,292.97 3,424,586,902.89
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Project (or investee) Ending balance Beginning balance
Hainan Yisheng Petrochemical Co., Ltd. 265,000,000.00
Ningbo Hengyi Trading Co., Ltd 169,500,000.00
Total 434,500,000.00
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Nature of account Ending book balance Beginning book balance
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Grants receivable 2,255,798,000.00
Tax refund receivables 1,414,624,597.36 2,191,866,778.70
Paper goods transaction settlement
126,333,617.88 441,074,641.63
portfolio
Loan margin portfolio 145,908,960.00 190,363,520.00
Futures margin portfolio 272,529,752.95 138,785,432.51
Deposit receivable margin portfolio 41,469,354.87 23,262,033.18
Portfolio of petty cash receivable, etc. 13,736,810.60 11,272,719.47
Current account portfolio 5,383,742.27 4,800,000.00
Total 4,275,784,835.93 3,001,425,125.49
2) Bad debt provision
Unit: RMB
Stage I Stage II Stage III
Expected credit loss over Expected credit loss for
Bad-debt provision Expected credit Total
the entire duration the entire duration
loss in the next
(without credit (credit impairment has
12 months
impairment) occurred)
Balance as of January 1, 2022 2,177,162.49 1,559,550.29 7,601,509.82 11,338,222.60
The balance as of January 1,
2022 in the current period
--Transferred to Stage II -439,059.77 439,059.77
--Transferred to Stage III -1,267,802.81 1,267,802.81
Provision in current period -219,751.75 147,312.29 2,297,759.82 2,225,320.36
Balance as of December 31,
1,518,350.97 878,119.54 11,167,072.45 13,563,542.96
2022
Disclose according to aging
Unit: RMB
Aging Book balance
Within 1 year (inclusive of 1 year) 4,114,598,428.50
1-2 years 47,417,515.49
2-3 years 82,314,027.88
Above 3 years 31,454,864.06
Total 4,275,784,835.93
3) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RMB
The amount of change in the current period
Beginning Ending
Category Recovered
balance Provisions Write-off Others balance
or returned
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Other receivables with
provision for bad debts based
11,338,222.60 2,225,320.36 13,563,542.96
on a combination of credit risk
characteristics
Total 11,338,222.60 2,225,320.36 13,563,542.96
4）Top five debtors with the biggest ending balances of other accounts receivable
Unit: RMB
Ending
Proportion in total
balance of
Nature of ending balance of
Company name Ending balance Aging provision
payment other receivables
for bad
(%)
debts
Zhoushan Green Petrochemical Within 1
Grants receivable 2,145,798,000.00 50.18
Base Management Committee year
Refund of consumption tax Tax refund Within 1
1,414,624,597.36 33.08
receivable receivables year
Xiaoshan District Headquarters Within 1
Grants receivable 110,000,000.00 2.57
Economy Special Class year
Paper goods
Within 1
GoldmanSachs transaction 84,265,781.88 1.97
year
settlement
Within 1
DBS.Living, Breathing Asia Futures margin 74,914,297.35 1.75
year
Total 3,829,602,676.59 89.55
5) Receivables involving government subsidies
Unit: RMB
Name of Estimated time,
Company name government subsidy Ending balance Period-end aging amount and basis to
project receive
Expected to be
Zhoushan Green Petrochemical
Fiscal incentives 2,145,798,000.00 Within 1 year recovered by June
Base Management Committee
30,2023
Expected to be
Xiaoshan District Headquarters
Fiscal incentives 110,000,000.00 Within 1 year recovered by June
Economy Special Class
30, 2023
[Note] According to the investment agreement, the People's Government of Zhoushan City gives financial incentives to Zhejiang
Petroleum & Chemical Co., Ltd. In December 2022, both parties reached an agreement that the financial reward shall be calculated
from November 2020 and cumulatively meet the conditions specified in the document, and Zhejiang Petroleum & Chemical Co., Ltd.
shall be given a total financial reward of RMB 2,096.65 million. For the financial rewards to be given in the subsequent year s, both
parties agree to complete the accounting of the financial rewards for the corresponding period every year and formally confirm them
by the Management Committee of Zhoushan Green Petrochemical Base.
7. Inventory
(1) Classification of inventories
Unit: RMB
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Ending balance Beginning balance
Inventory Inventory
depreciation depreciation
reserves or reserves or
Item provision for provision for
Book balance Book value Book balance Book value
impairment of impairment
contract of contract
performance performance
cost cost
Raw 38,684,037,331.
38,684,253,387.46 216,055.92 34,647,512,557.36 34,647,512,557.36
materials 54
Products in
11,833,781,904.06 69,319,996.22 11,764,461,907.84 7,574,608,096.73 11,183,116.80 7,563,424,979.93
process
Commodity
10,300,065,925.25 212,720,495.66 10,087,345,429.59 4,759,952,870.48 12,675,376.80 4,747,277,493.68
stocks
Work in
process - 276,865.36 276,865.36 2,082,494.41 2,082,494.41
outsourced
Low-value
153,788,259.61 153,788,259.61 149,922,590.26 149,922,590.26
consumables
Total 60,972,166,341.74 282,256,547.80 60,689,909,793.94 47,134,078,609.24 23,858,493.60 47,110,220,115.64
(2) Provision for obsolete inventory or for impairment of the cost of contract performance
Unit: RMB
Increase in the current period Decrease in the current period
Beginning Ending
Item Reversal or
balance Provisions Others Others balance
write-off
Raw materials 216,055.92 216,055.92
Products in
11,183,116.80 69,319,996.22 11,183,116.80 69,319,996.22
process
Commodity
12,675,376.80 212,720,495.66 12,675,376.80 212,720,495.66
stocks
Total 23,858,493.60 282,256,547.80 23,858,493.60 282,256,547.80
For the specific basis for determining the net realizable value, please refer to Note III (XI) for the detailed
description of inventories in the financial statements. The decrease of inventory falling price reserves in the
current period is written off according to the consumption of products and the sales of inventory goods in the
current period.
8. Other current assets
Unit: RMB
Item Ending balance Beginning balance
VAT input tax to be deducted 1,131,926,010.21 11,526,246,116.96
Business income tax pre-paid 1,335,755,359.29 14,230,528.20
Total 2,467,681,369.50 11,540,476,645.16
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9. Long-term equity investment
Unit: RMB
Increase and decrease in the current period
Beginning Other Ending
Reduce Investment gains or Other Provision Ending balance balance of
Investee equity Declared
balance Additional d losses recognized comprehensiv for Oth provision for
distribution of cash (book value)
investment invest under the equity e income impairmen ers impairment
(book value) changes dividends or profits
ment method adjustments t
I. Joint ventures
II. Associated enterprise
Zhejiang Yisheng 2,750,672,174.9 - 2,691,757,678.9
Petrochemical Co., Ltd. -51,581,261.65
0 7,333,234.31 4
Ningbo Hengyi Trading Co., 10,289,345.7
Ltd
193,629,420.45 27,814,486.29 231,733,252.44
0
-
Zhejiang Xiaoshan Rural 1,822,497,360.7 256,552. 2,006,079,840.1
Commercial Bank Co., Ltd.
270,981,637.54 47,969,792.2 39,685,918.80
4 96 5
9
Zhejiang Jurong Petroleum &
Chemical Sales Co., Ltd.
14,433,562.44 20,607.10 14,454,169.54
Zhejiang Kunsheng Petroleum
& Chemical Sales Co., Ltd. 16,211,405.03 -2,990,391.47 13,221,013.56
Hainan Yisheng 2,246,522,800.4 500,000,0 34,297,818.9 3,302,885,758.5
Petrochemical Co., Ltd.
522,065,139.16
1 00.00 9 6
Zhejiang Provincial Petroleum
Co., Ltd. 70,927,978.15 -70,773,727.69 -154,250.46
ZPC-ENN (Zhoushan) Gas
Co., Ltd.
16,714,460.86 -3,984,829.71 12,729,631.15
Zhejiang Dingsheng
Petrochemical Engineering 26,117,171.69 5,921,065.85 32,038,237.54
Co., Ltd.
Zhejiang Derong chemicals 50,000,00 4,373,60
Co. Ltd. 337,026,466.08 -49,352,346.31 342,047,728.85
0.00 9.08
Zhoushan ZPC Zhougang 22,684.7
Tugboat Co., Ltd.
59,861,987.37 8,080,887.33 6,000,000.00 61,965,559.46
6
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Zhejiang Oil Products Trading
Co., Ltd. 10,877,939.96 -10,877,939.96
Ningbo Coastal Public Pipe
Gallery Co., Ltd.
6,995,889.51 -694,363.42 6,301,526.09
Zhejiang Zhenshi Port Service
Co., Ltd. 18,380,793.62 -265,383.55 18,115,410.07
-
7,590,869,411.2 550,000,0 4,652,84 8,733,329,806.3
Subtotal 644,363,579.51 10,870,112.3 45,685,918.8
1 00.00 6.80 5
7
-
7,590,869,411.2 550,000,0 4,652,84 8,733,329,806.3
Total 644,363,579.51 10,870,112.3 45,685,918.8
1 00.00 6.80 5
7
10. Investment real estates
(1) Investment real estate under the cost measurement mode
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Unit: RMB
Item Houses and buildings Total
I. Original book value
1. Initial balance 14,286,632.00 14,286,632.00
2. Increase in the current period
(1) Outsourcing
(2) Transfers from inventories/fixed
assets/construction in progress
(3) Increase due to business merger
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 14,286,632.00 14,286,632.00
II. Accumulated depreciation and accumulated amortization
1. Initial balance 3,348,165.40 3,348,165.40
2. Increase in the current period 271,446.00 271,446.00
(1) Accrual or amortization 271,446.00 271,446.00
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 3,619,611.40 3,619,611.40
III. Provision for impairment
1. Initial balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance
IV. Book value
1. Closing book value 10,667,020.60 10,667,020.60
2. Beginning book value 10,938,466.60 10,938,466.60
(2) Investment real estate under the fair value method
□ Applicable √ Not applicable
11. Fixed assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 222,161,110,736.65 124,274,418,986.34
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Total 222,161,110,736.65 124,274,418,986.34
(1) Fixed assets
Unit: RMB
Housing and Machinery and Transportation Other
Item Total
buildings equipment facilities equipment
I. Original book value:
1. Initial balance 40,759,249,277.89 102,843,817,697.76 220,275,084.97 296,135,315.40 144,119,477,376.02
2. Increase in the current
29,075,430,849.19 80,281,513,218.66 31,747,047.63 32,511,848.06 109,421,202,963.54
period
(1) Acquisition 15,889,282.93 442,353,106.69 27,855,094.65 13,313,019.30 499,410,503.57
(2) Transfer-in from
29,059,541,566.26 79,839,160,111.97 3,891,952.98 19,198,828.76 108,921,792,459.97
construction in progress
(3) Increase due to
business merger
3. Decrease in the current
205,491,586.31 9,131,186.61 13,508.08 214,636,281.00
period
(1) Disposal or
205,491,586.31 9,131,186.61 13,508.08 214,636,281.00
scrapping
4. Ending balance 69,834,680,127.08 182,919,839,330.11 242,890,945.99 328,633,655.38 253,326,044,058.56
II. Accumulated
depreciation
1. Initial balance 3,290,573,339.42 16,249,434,403.25 142,034,307.92 151,476,666.87 19,833,518,717.46
2. Increase in the
2,079,116,930.49 9,239,688,005.65 33,697,179.58 54,283,484.91 11,406,785,600.63
current period
(1) Accrual 2,079,116,930.49 9,239,688,005.65 33,697,179.58 54,283,484.91 11,406,785,600.63
(2) Increase in the
82,559,596.70 4,340,158.39 10,913.31 86,910,668.40
business combinations
3. Decrease in the current
82,559,596.70 4,340,158.39 10,913.31 86,910,668.40
period
4. Ending balance 5,369,690,269.91 25,406,562,812.20 171,391,329.11 205,749,238.47 31,153,393,649.69
III. Provision for
impairment
1. Initial balance 11,539,672.22 11,539,672.22
2. Increase in the
current period
(1) Accrual
3. Decrease in the
current period
(1) Disposal or
scrapping
4. Ending balance 11,539,672.22 11,539,672.22
IV. Book value
1. Closing book
64,464,989,857.17 157,501,736,845.69 71,499,616.88 122,884,416.91 222,161,110,736.65
value
2. Beginning book 37,468,675,938.47 86,582,843,622.29 78,240,777.05 144,658,648.53 124,274,418,986.34
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value
(2) Fixed assets with the certificate of title not transacted
Unit: RMB
Reasons for incomplete
Item Original book value
certificates of title
Houses and buildings - tank farm, supporting buildings
7,127,767,903.92
and others of ZPC
Houses and buildings - polymerization building and
others of Zhejiang Shengyuan Chemical Fiber Co., 505,740,074.63
Ltd.
Houses and buildings -office buildings and others of
197,972,690.71
Yisheng Dahua Petrochemical Co., Ltd.
Houses and buildings -warehouse, supporting facilities
and others of Zhejiang Yisheng New Materials Co., 120,229,088.05
Ltd.
Houses and buildings -- flow shop of Zheyou
87,465,832.30
Technology Co. Ltd.
Houses and buildings -film warehouse and others of
62,725,896.38
Zhejiang Yongsheng Technology Co. Ltd.
Subtotal 8,101,901,485.99
12. Projects under construction
Unit: RMB
Item Ending balance Beginning balance
Project under construction 24,590,757,677.89 107,785,355,403.53
Engineering materials 1,544,399,951.56 886,301,208.34
Total 26,135,157,629.45 108,671,656,611.87
(1) Construction in progress
Unit: RMB
Ending balance Beginning balance
Provi
Provision sion
Item Book for Book for
Book balance Book value
balance impairme value impa
nt irme
nt
Refining and chemical integration project 75,480,041,32 75,480,041,
phase II (40 million tons per year) 7.88 327.88
6,020,862, 6,020,862, 19,437,350,52 19,437,350,
Utilities and supporting facilities
104.28 104.28 3.04 523.04
1.4 million tons ethylene and downstream
14,276,035 14,276,035 5,064,095,562. 5,064,095,5
chemical plant (optimization of product
,763.50 ,763.50 35 62.35
structure of Phase II project)
Functional polyester film expansion project 967,377,97 967,377,97 253,229,505.2 253,229,505
with an annual output of 250,000 tons per year 1.40 1.40 4 .24
PTA project with an annual output of 3 million
4,047,659,718. 4,047,659,7
tons and reconstruction and expansion of 3
150 /215
Full text of 2022 Annual Report
million tons 39 18.39
446,159,95 446,159,95
High performance resin project
0.48 0.48
17,358,490 17,358,490
High-end new material project
.59 .59
41,739,407 41,739,407
Jintang New Material Project
.97 .97
2,821,223, 2,821,223, 3,502,978,766. 3,502,978,7
Sporadic projects
989.67 989.67 63 66.63
24,590,757 24,590,757 107,785,355,4 107,785,355
Total
,677.89 ,677.89 03.53 ,403.53
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(2) Changes in major construction in progress in the current period
Unit: RMB
Interest
Amount of Other Including:
Percentage Accumula capitaliz
Increase fixed assets decreas Proj Capitalized
Budget of the ted ation
Beginnin in the carried es in Ending ect amount of Sources of
Project (RMB actual cost capitalized rate in
g balance current over in the the balance prog interest in fund
10,000) to budget amount of the
period current current ress the current
(%) interest current
period period period
period
Refining and chemical Raised funds,
8,292,9 75,480,04 2,800,701 78,280,742, 100. 5,184,421, 1,858,797,052
integration project phase II 112.74% 4.68% bank loans,
35.00 1,327.88 ,087.77 415.65 00% 020.98 .80
(40 million tons per year) other sources
Utilities and supporting 19,437,35 1,071,147 14,487,635, 6,020,862 1,019,510, 557,816,742.5 Bank loans,
4.21%
facilities 0,523.04 ,429.09 847.85 ,104.28 912.98 3 other sources
1.4 million tons ethylene and
downstream chemical plant 3,448,5 5,064,095, 19,075,47 9,863,535,8 14,276,03 80.0 439,482,47 439,482,479.8 Bank loans,
77.00% 4.21%
(optimization of product 17.00 562.35 6,046.70 45.55 5,763.50 0% 9.84 4 other sources
structure of Phase II project)
Functional polyester film
expansion project with an 200,00 253,229,5 714,148,4 967,377,9 75.0 28,263,407 Bank loans,
74.99% 22,943,110.33 4.22%
annual output of 250,000 tons 0.00 05.24 66.16 71.40 0% .70 other sources
per year
PTA project with an annual
output of 3 million tons and 944,02 4,047,659, 137,772,1 4,185,431,8 100. 229,354,85 Bank loans,
95.19% 97,946,750.79 4.79%
reconstruction and expansion 1.00 718.39 66.76 85.15 00% 0.69 other sources
of 3 million tons
High performance resin 1,827,5 446,159,9 446,159,9 2.44 Bank loans,
2.44%
project 50.00 50.48 50.48 % other sources
High-end new material 6,414,6 17,358,49 17,358,49 0.03 Bank loans,
0.03%
project 91.00 0.59 0.59 % other sources
7,953,8 41,739,40 41,739,40 0.05 Bank loans,
Jintang New Material Project 0.05%
57.00 7.97 7.97 % other sources
3,502,978, 1,422,691 2,104,446,4 2,821,223
Sporadic projects Other sources
766.63 ,688.81 65.77 ,989.67
29,081, 107,785,3 25,727,19 108,921,792 24,590,75 6,901,032, 2,976,986,136
Total
571.00 55,403.53 4,734.33 ,459.97 7,677.89 672.19 .29
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(3) Engineering materials
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Special
1,170,107,409.07 1,170,107,409.07 508,244,449.16 508,244,449.16
materials
Special
374,292,542.49 374,292,542.49 378,056,759.18 378,056,759.18
Equipment
Total 1,544,399,951.56 1,544,399,951.56 886,301,208.34 886,301,208.34
13. Right-of-use assets
Unit: RMB
Item Housing and buildings Total
I. Original book value:
1. Initial balance 290,265,617.88 290,265,617.88
2. Increase in the current period
3. Decrease in the current period
4. Ending balance 290,265,617.88 290,265,617.88
II. Accumulated depreciation
1. Initial balance 37,187,189.87 37,187,189.87
2. Increase in the current period 27,471,659.67 27,471,659.67
(1) Accrual 27,471,659.67 27,471,659.67
3. Decrease in the current period
(1) Disposal
4. Ending balance 64,658,849.54 64,658,849.54
III. Provision for impairment
1. Initial balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV. Book value
1. Closing book value 225,606,768.34 225,606,768.34
2. Beginning book value 253,078,428.01 253,078,428.01
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14. Intangible assets
(1) Intangible assets
Unit: RMB
Management Pollution Sea area use
Item Land-use right Know-how Total
software dumping right right
I. Original book value
1. Initial
6,185,939,085.99 5,879,510.85 57,687,224.41 124,053,128.30 25,970,417.99 6,399,529,367.54
balance
2. Increase in the
442,756,081.08 1,623,860.46 7,547,169.84 877,731.01 452,804,842.39
current period
(1) Acquisition 442,756,081.08 1,623,860.46 7,547,169.84 877,731.01 452,804,842.39
(2) Internal R&D
(3) Increase in the
business combinations
3. Decrease in the
current period
(1) Disposal
4. Ending balance 6,628,695,167.07 5,879,510.85 59,311,084.87 131,600,298.14 26,848,149.00 6,852,334,209.93
II. Accumulated
amortization
1. Initial
573,788,699.64 4,165,674.42 15,910,165.85 89,350,207.08 12,100,074.45 695,314,821.44
balance
2. Increase in the
131,860,858.58 188,679.24 6,989,916.99 15,764,910.40 4,443,142.16 159,247,507.37
current period
(1) Accrual 131,860,858.58 188,679.24 6,989,916.99 15,764,910.40 4,443,142.16 159,247,507.37
3. Decrease in the
current period
(1) Disposal
4. Ending balance 705,649,558.22 4,354,353.66 22,900,082.84 105,115,117.48 16,543,216.61 854,562,328.81
III. Provision for
impairment
1. Initial
balance
2. Increase in the
current period
(1) Accrual
3. Decrease in the
current period
(1) Disposal
4. Ending balance
IV. Book value
1. Closing book value 5,923,045,608.85 1,525,157.19 36,411,002.03 26,485,180.66 10,304,932.39 5,997,771,881.12
2. Beginning book
5,612,150,386.35 1,713,836.43 41,777,058.56 34,702,921.22 13,870,343.54 5,704,214,546.10
value
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15. Long-term deferred expenses
Unit: RMB
Amortization
Beginning Increase in the Other Ending
Item amount in the
balance current period reductions balance
current period
Improvement expense for fixed
185,020.17 67,861.04 117,159.13
assets rented through operating lease
Total 185,020.17 67,861.04 117,159.13
16. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
Unit: RMB
Ending balance Beginning balance
Item Deductible Deferred income tax Deductible Deferred income tax
temporary difference assets temporary difference assets
Deductible uncovered loss 1,926,924,516.34 322,308,341.68 720,277,397.91 109,873,410.16
Changes in fair value of
trading financial instruments
103,171,027.61 16,689,662.09 198,216,221.87 11,690,354.14
and derivative financial
instruments
Deferred income 186,228,230.49 30,561,612.33 202,601,815.13 36,553,016.71
Unrealized profits from
174,649,487.88 7,817,620.70 249,216,636.77 52,322,278.68
internal transactions
Provision for impairment of
359,105,143.75 59,820,985.40 80,749,430.32 15,882,234.03
assets
Total 2,750,078,406.07 437,198,222.20 1,451,061,502.00 226,321,293.72
(2) Deferred income tax liabilities before offset
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
One time pre-tax deduction of
10,979,341,858.26 1,646,901,278.74 10,946,417,001.89 2,735,497,783.75
long-term assets
The parent company, reflected
at the level of consolidated
statements, invests the loan as
paid-in capital into the
2,232,554,629.20 334,883,194.38 1,842,522,375.83 458,607,792.87
subsidiary company, which
serves as the loan interest for
the capitalization of long-term
asset construction.
Changes in fair value of trading
financial instruments and 188,283,362.48 14,181,961.06 284,066,208.36 39,166,227.36
derivative financial instruments
Total 13,400,179,849.94 1,995,966,434.18 13,073,005,586.08 3,233,271,803.98
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(3) Details of unrecognized deferred income tax assets
Unit: RMB
Item Ending balance Beginning balance
Unrecognised tax loss 4,786,039,765.48 3,150,327,780.68
Provision for impairment of assets 77,404,439.05 59,280,545.62
Trading financial liabilities 74,384,267.98
Deferred income 9,434,323.24 11,149,526.44
Total 4,947,262,795.75 3,220,757,852.74
(4) The deductible losses of unrecognized deferred income tax assets will be due in the following years
Unit: RMB
Year Ending amount Beginning amount Remarks
2022 115,167,084.36
2023 795,881,505.75 795,987,438.71
2024 649,192,751.95 653,770,827.38
2025 892,628,563.63 913,566,588.84
2026 942,842,859.62 640,338,430.60
2027 1,098,455,315.24
2030 31,497,410.79
2032 407,038,769.29
Total 4,786,039,765.48 3,150,327,780.68
17. Other non-current assets
Unit: RMB
Ending balance Beginning balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Prepayment for
purchase of long- 2,794,937,800.46 2,794,937,800.46 1,957,492,595.67 1,957,492,595.67
term assets
Rental value of
411,214,415.96 411,214,415.96
silver leased in
Total 3,206,152,216.42 3,206,152,216.42 1,957,492,595.67 1,957,492,595.67
18. Short-term borrowings
(1) Categories of short-term borrowings
Unit: RMB
Item Ending balance Beginning balance
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Mortgage borrowing 67,000,000.00
Guaranteed loan 24,978,544,183.97 36,363,709,711.96
Credit borrowings 1,391,008,216.53 1,440,196,738.65
Total 26,369,552,400.50 37,870,906,450.61
19. Trading financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Trading financial liabilities 588,769,711.55 214,744,004.37
Including: derivative financial liabilities 102,366,489.48 214,744,004.37
Including: fair value of silver leased 486,403,222.07
Total 588,769,711.55 214,744,004.37
20. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Commercial acceptance bill 160,000,000.00
Banker's acceptance 3,408,800,462.03 2,326,446,489.85
Total 3,408,800,462.03 2,486,446,489.85
21. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Ending balance Beginning balance
Payable for material procurement and
57,051,576,225.73 44,326,450,223.83
operation
Payable for purchase of long-term assets 12,027,790,750.70 13,662,360,592.20
Total 69,079,366,976.43 57,988,810,816.03
22. Contract liabilities
Unit: RMB
Item Ending balance Beginning balance
Payments for goods 3,734,262,391.81 4,240,816,908.28
Total 3,734,262,391.81 4,240,816,908.28
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23. Employee benefits payable
(1) Presentation of employee benefits
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
I. Short-term
902,849,253.05 3,766,309,774.41 3,654,965,376.25 1,014,193,651.21
compensation
II. Post-employment
benefits - defined 9,422,683.44 141,881,707.90 142,786,940.43 8,517,450.91
contribution plan
III. Dismissal welfare 39,185.00 39,185.00
Total 912,271,936.49 3,908,230,667.31 3,797,791,501.68 1,022,711,102.12
(2) Short-term remuneration
Unit: RMB
Beginning Increase in the Decrease in the
Item Ending balance
balance current period current period
(I) Wage, bonus, allowance and
895,571,825.05 3,533,877,214.46 3,422,941,409.73 1,006,507,629.78
subsidy
2. Employee welfare expenses 30,582,348.98 30,582,348.98
3. Social insurance premium 6,441,688.65 97,385,614.48 97,064,482.65 6,762,820.48
Including: Medical
6,156,323.71 89,486,798.89 89,333,570.30 6,309,552.30
insurance premium
Work-related injury insurance
285,364.94 6,931,195.93 6,763,292.69 453,268.18
premium
Birth insurance premium 967,619.66 967,619.66
4. Housing provident fund 49,151.50 77,964,284.60 77,778,741.10 234,695.00
5. Labor union and personnel
786,587.85 26,500,311.89 26,598,393.79 688,505.95
education expenses
Total 902,849,253.05 3,766,309,774.41 3,654,965,376.25 1,014,193,651.21
(3) Presentation of defined contribution plan
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
1. Basic endowment
9,097,697.18 137,013,309.29 137,888,916.08 8,222,090.39
insurance
2. Unemployment
324,986.26 4,868,398.61 4,898,024.35 295,360.52
insurance premium
Total 9,422,683.44 141,881,707.90 142,786,940.43 8,517,450.91
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24. Taxes payable
Unit: RMB
Item Ending balance Beginning balance
Corporate income tax 248,997,237.28 4,149,312,868.95
Consumption tax 449,500,508.31 2,472,727,765.46
Value added tax 406,455,280.68 81,233,550.52
Land use tax 112,480,989.03 108,947,797.65
Stamp duty 38,152,661.15 74,941,067.92
Urban maintenance and construction tax 64,611,829.70 404,155,723.75
Educational surcharges 59,958,124.53 181,014,534.62
Local education surcharges 39,972,113.03 122,293,916.44
Property tax 25,589,744.40 9,405,940.06
Withholding of individual income tax 14,735,296.18 10,125,161.89
Environmental protection tax 2,886,594.15 1,528,464.10
Vehicle and vessel tax 744.00
Total 1,463,341,122.44 7,615,686,791.36
25. Other payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 108,000,000.00 187,500,000.00
Other payables 3,364,604,671.47 1,915,111,949.60
Total 3,472,604,671.47 2,102,611,949.60
(1) Dividends payable
Unit: RMB
Item Ending balance Beginning balance
Dividends payable on ordinary shares by
108,000,000.00 187,500,000.00
subsidiaries
Total 108,000,000.00 187,500,000.00
(2) Other payables
1) Other payables listed by the nature of payment
Unit: RMB
Item Ending balance Beginning balance
Entrusted loan 989,433,904.99 1,079,486,911.13
Current accounts 1,539,513,447.19 3,628,215.25
Deposit and security 718,412,933.85 596,361,605.72
159 /215
Full text of 2022 Annual Report
Settled but unpaid operating expenses 98,302,534.15 219,272,451.35
Others 18,941,851.29 16,362,766.15
Total 3,364,604,671.47 1,915,111,949.60
26. Non-current liabilities due within one year
Unit: RMB
Item Ending balance Beginning balance
Long-term borrowings due within one
20,439,097,358.80 13,352,556,707.30
year
Lease liabilities due within one year 22,290,420.13 23,741,214.78
Total 20,461,387,778.93 13,376,297,922.08
27. Other current liabilities
Unit: RMB
Item Ending balance Beginning balance
Output tax to be transferred 458,588,848.28 532,865,110.32
Total 458,588,848.28 532,865,110.32
28. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
Item Ending balance Beginning balance
Mortgage and guarantee borrowings 104,036,600,984.70 102,235,692,707.70
Guaranteed loan 26,613,442,784.59 6,882,714,776.15
Unsecured loans 312,343,200.00
Total 130,962,386,969.29 109,118,407,483.85
29. Bonds payable
(1) Bonds payable
Unit: RMB
Item Ending balance Beginning balance
Green corporate bonds (second tranche) 788,342,602.93 1,030,412,856.33
Green corporate bonds (third tranche) 1,246,484,519.30 1,012,517,068.44
Total 2,034,827,122.23 2,042,929,924.77
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(2) Increase/decrease of bonds payable: (excluding preferred stock, perpetual bond and other financial
instruments classified as financial liabilities)
Unit: RMB
Amorti
Issue
zation
Beginn in Interest Repay
Name Issue of Ending
Par ing curre accrued ment in
of Issue date Bond period amoun premiu balanc
value balanc nt by par current
bond t ms or e
e perio value period
discou
d
nts
20
1,000, 1,030,4 1,029,1
Rong 2020.4.21、 995,452 45,216,54 1,266,0 47,700,
000,00 4 years (2 + 2) 12,856. 95,433.
sheng 2020.4.22 ,830.20 0.75 36.04 000.00
0.00 33 12
G1
This tranche of
bonds has a
maturity of 4 years,
20 with the right to
1,000, 2020.8.31、 1,012,5 1,005,6
Rong adjust the nominal 995,405 39,888,25 1,126,3 47,900,
000,00 2020.9.01、 17,068. 31,689.
sheng interest rate by the ,660.39 6.15 64.52 000.00
0.00 2020.9.02 44 11
G2 issuer and sell back
by the investor at
the end of the
second year.
1,990,8 2,042,9 2,034,8
85,104,79 2,392,4 95,600,
Total —— 58,490. 29,924. 27,122.
6.90 00.56 000.00
59 77 23
30. Lease liabilities
Unit: RMB
Item Ending balance Opening balance [note]
Lease payments 276,960,637.05 306,566,976.44
Unacknowledged financial charges -63,560,240.60 -72,791,239.49
Total 213,400,396.45 233,775,736.95
31. Deferred income
Unit: RMB
Increase in the Decrease in the Reasons for
Item Beginning balance Ending balance
current period current period incurrence
Government Government grants
213,751,341.57 13,259,114.00 31,347,901.84 195,662,553.73
subsidies related to assets
Total 213,751,341.57 13,259,114.00 31,347,901.84 195,662,553.73 --
32. Share capital
Unit: RMB
Beginning Increase and decrease of this change (+, -)
Ending balance
balance Others Subtotal
New issue Issue of Conversion
161 /215
Full text of 2022 Annual Report
of shares bonus of provident
shares fund into
shares
Total
number of 10,125,525,000.00 10,125,525,000.00
shares
33. Capital reserves
(1) Details
Unit: RMB
Decrease in
Increase in the
Item Beginning balance the current Ending balance
current period
period
Capital premium (equity premium) 10,779,726,139.51 10,779,726,139.51
Other capital reserves 40,369,711.07 2,498,662.81 42,868,373.88
Total 10,820,095,850.58 2,498,662.81 10,822,594,513.39
(2) Description of changes in capital reserve:
The increase in the current period refers to other changes in the owner's equity of associated enterprises other
than net gain and loss, other comprehensive income and profit distribution. The company calculates the share to
be entitled by shareholding ratio, which is included in the capital reserve (other capital reserves).
34. Treasury stock
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Repurchase of public
3,978,202,364.65 3,978,202,364.65
shares
Total 3,978,202,364.65 3,978,202,364.65
Other notes, including notes to increase and decrease in the current period and its reasons:
According to the Proposal on Repurchase of Shares of the Company deliberated and adopted at the 21st
meeting of the fifth board of directors held by the Company on March 15, 2022, the Company has used its own
funds to buy back part of the public shares issued by it in the form of centralized bidding transaction, which is
used to convert corporate bonds issued by listed companies that can be converted into shares. In the current period,
the repurchase amount is not less than RMB 1 billion (inclusive) and not more than RMB 2 billion (inclusive), and
the repurchase price is not more than RMB 22/share (inclusive).
According to the Proposal on Repurchase of Shares of the Company deliberated and adopted at the second
meeting of the sixth session of the Board of Directors of the Company held on August 4, 2022, the Company has
used its own funds to buy back part of the public shares issued by it in China in the form of centralized bidding
transaction, which is used to convert corporate bonds or employee stock ownership plans issued by listed
companies that can be converted into shares. The total amount of repurchase funds shall be not less than RMB 1
billion (inclusive) and not more than RMB 2 billion (inclusive), and the repurchase price shall not exceed RMB
20/share.
In this period, the Company repurchased shares in the form of centralized bidding transactions through the
special securities repurchase account, and the number of shares repurchased was 283,142,652 shares, accounting
162 /215
Full text of 2022 Annual Report
for about 2.80% of the total share capital of the Company. The highest transaction price was RMB15.05 per share,
and the lowest transaction price was RMB11.26 per share. The total amount paid was RMB 3,978,202,364.65
(excluding transaction fees).。
35. Other comprehensive income
Unit: RMB
The amount incurred in the current period
Less:
Less: Amount
amount
included in
included in
other
other Less:
Amount comprehensiv Attributabl Attributabl
Beginning comprehensi Inco Ending
Item incurred e incomes e to the e to the
balance ve income me balance
before previously parent minority
previously tax
current and then company shareholde
and then expen
income tax transferred after tax rs after tax
transferred se
into current
into current
retained
gain and
earnings
loss
II. Other
comprehensiv
e income to -
181,210,268 151,931,68 29,278,588. 139,462,6
be 12,469,066
.63 0.55 09 13.71
reclassified .84
into profit or
loss
Including:
other
comprehensiv
e income - -
92,848,437 10,213,762. 71,764,56
convertible 10,870,112. 21,083,875.
.81 97 2.47
into profit or 37 34
loss by the
equity
method
Translati
on difference
-
of financial 192,080,381 173,015,55 19,064,825. 67,698,05
105,317,50
statements in .00 5.89 11 1.24
4.65
foreign
currency
Total other -
181,210,268 151,931,68 29,278,588. 139,462,6
comprehensiv 12,469,066
.63 0.55 09 13.71
e income .84
36. Special reserve
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Work safety expenses 224,052,374.80 224,052,374.80
Total 224,052,374.80 224,052,374.80
Other notes, including notes to increase and decrease in the current period and its reasons:
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The increase and decrease of special reserve in this period are the safety production expenses accrued and
used by subsidiaries Yisheng Dahua Petrochemical Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., Zhejiang
Yisheng New Material Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd. and ZPC Zheyou Technology Co.,
Ltd.
37. Surplus reserve
Unit: RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Statutory surplus reserve 712,695,666.11 173,774,728.61 886,470,394.72
Total 712,695,666.11 173,774,728.61 886,470,394.72
Notes to surplus reserves, including notes to current increase and decrease and related reasons:
(2) Other notes
According to the Articles of Association, 10% of the net profit realized by the parent company in 2022 has
been withdrawn for the statutory surplus reserve.
38. Undistributed profits
Unit: RMB
Item Current period Prior period
Undistributed profits at the end of the prior period before
27,192,950,922.86 15,562,049,572.57
the adjustment
Total amount of undistributed profit at the beginning of
412,507,575.69
adjustment ("+" for increase, "-" for decrease)
Undistributed profit at the beginning of the period after
27,605,458,498.55 15,562,049,572.57
adjustment
Add: Net profit attributable to the owner of the parent
3,340,162,428.95 13,236,054,388.76
company in the current period
Less: Withdrawal of statutory surplus reserve 173,774,728.61 180,092,962.78
Common stock dividends payable 1,507,313,454.95 1,012,552,500.00
Undistributed profit at the end of the period 29,264,532,743.94 27,605,458,498.55
Details of adjustment of beginning undistributed profits:
Retroactive adjustment carried out as required by Accounting Standards for Business Enterprises and relevant new
regulations exerts an impact of RMB 412,507,575.69 on the undistributed profit at the beginning of the year.
39. Operating income and operating costs
(1) Details
Unit: RMB
Current amount incurred Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary business 287,950,149,983.36 256,926,391,305.48 182,400,669,773.34 134,686,984,202.95
Other Businesses 1,144,691,629.40 914,763,275.79 674,260,513.17 400,078,914.41
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Total 289,094,841,612.76 257,841,154,581.27 183,074,930,286.51 135,087,063,117.36
Whether the lower of the net profits before and after net of non-recurring gains/losses is negative through audit
□ Yes No
(2) Breakdown of revenue generated by contracts with customers by major categories
1) Breakdown of income by commodity type
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Oil refining 103,841,990,910.56 84,981,949,000.87 52,587,161,375.41 32,778,382,642.21
Chemical 113,898,786,080.29 102,078,088,582.19 72,023,079,213.02 45,187,599,699.90
PTA 50,496,010,557.67 50,949,332,208.40 22,942,150,309.12 22,660,261,857.39
Polyester
chemical fiber 14,641,039,125.46 14,168,474,148.53 14,303,652,901.29 13,167,469,746.84
film
Trade and
6,217,014,938.78 5,663,310,641.28 21,218,886,487.67 21,293,349,171.02
others
Total 289,094,841,612.76 257,841,154,581.27 183,074,930,286.51 135,087,063,117.36
2) Breakdown of income by the time of commodity transfer
Amount in the current Amount in the previous
Item
period period
Revenue recognized at a certain point of time 289,092,154,298.59 183,060,917,795.69
Revenue recognized in a period of time 2,687,314.17 14,012,490.82
Subtotal 289,094,841,612.76 183,074,930,286.51
(3) The revenue recognized in the current period included in the opening book value of contract
liabilities is RMB 4,208,298,269.67.
(4) Sales revenue and cost from trial operation reported in operating revenue and operating costs
1) Commissioning sales revenue and cost
Amount in the current Amount of the same
Item
period period last year
Sales revenue from trial operation 34,916,101,427.73 6,050,652,793.73
Sales cost from trial operation 29,676,585,780.01 4,973,657,825.57
2) Critical accounting estimates used in determining costs related to commissioning sales
For the inventory of trial production before the fixed assets of the Company reach the expected usable state,
the relevant inventory cost is recognized on the basis of the necessary and reasonable expense under the normal
design production capacity, combined with the normal design production capacity after the fixed assets reach the
expected usable state, the normal production input-output ratio of the products and other factors.
(5) Other Notes
The recognition of some trade business income of the company in 2020 and 2021 was not standardized, and
the corresponding reduction in operating income and operating costs for the current period was RMB 12,749.6437
million, which had no impact on the net profit for the current period.
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40. Taxes and surcharges
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Excise (consumption) tax 14,971,021,522.33 7,721,236,286.64
Urban maintenance and construction tax 1,045,144,550.70 556,794,874.07
Education surcharge 448,133,892.95 239,174,945.93
Local education surcharge 298,755,958.60 159,449,963.96
Stamp duty 87,909,307.61 73,219,215.75
Land use tax 115,394,536.99 59,206,084.72
Property tax 35,981,636.59 14,081,463.56
Environmental protection tax 8,395,902.69 9,446,073.11
vehicle and vessel tax 101,671.92 73,318.16
Total 17,010,838,980.38 8,832,682,225.90
41. Selling expenses
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Employee compensation 110,041,776.76 102,383,987.13
Sales business expenses 39,978,053.01 35,016,783.01
Others 25,430,798.39 17,571,634.19
Total 175,450,628.16 154,972,404.33
42. Administrative expenses
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Employee compensation 381,467,230.32 279,131,824.22
Office expenses 163,305,799.64 159,754,695.73
Depreciation and amortization expense 141,020,604.94 142,756,241.54
Insurance premium 75,902,949.27 50,727,169.75
Business entertainment expenses 15,273,187.46 15,352,519.06
Others 38,263,837.47 35,000,924.84
Total 815,233,609.10 682,723,375.14
43. R&D expenses
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Direct input 3,695,900,511.90 3,058,866,691.17
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Depreciation and amortization 323,443,663.63 518,854,535.63
Employee compensation 323,237,921.80 311,285,572.04
Equipment commissioning fee 110,610.62 22,065,866.97
Outsourcing R&D and others 24,419,779.02 4,191,714.67
Total 4,367,112,486.97 3,915,264,380.48
44. Financial expenses
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Interest expense 4,577,830,003.95 3,597,132,178.72
Interest income -351,751,026.01 -308,939,839.82
Net exchange losses/gains 1,515,404,259.76 -633,280,926.60
Others 289,026,311.05 243,439,764.29
Total 6,030,509,548.75 2,898,351,176.59
45. Other income
Unit: RMB
Amount incurred in the previous
Sources generating other incomes Current amount incurred
period
Government grants related to assets 31,347,901.84 27,550,883.35
Government grants related to income 2,328,129,612.92 87,342,380.79
Return of fees for withheld individual
2,748,797.01 2,304,612.04
income tax
Others 1,026,607.00 7,062,349.00
Total 2,363,252,918.77 124,260,225.18
46. Investment income
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Investment income from disposal of
38,483,520.80 455,332,263.56
financial instruments
Long-term equity investment income
644,363,579.51 127,213,716.43
calculated by equity method
Interest income from related party lending 205,188.67 2,035,569.54
Entrusted loan income 26,123,140.37
Proceeds from wealth management
625,599.45
products
Investment income from disposal of long-
10,425,856.86 -262,218.53
term equity investments
Total 693,478,145.84 611,068,070.82
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47. Gain from change in fair value
Unit: RMB
Sources of income from changes in fair Amount incurred in the previous
Current amount incurred
value period
Trading financial assets 188,283,362.49 345,151,994.32
Trading financial liabilities -177,555,295.59 -198,216,221.87
Total 10,728,066.90 146,935,772.45
48. Credit impairment loss
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Bad debt losses -15,203,657.84 -74,973,487.19
Total -15,203,657.84 -74,973,487.19
49. Asset impairment loss
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Inventory falling price loss -282,256,547.80 -23,858,493.60
Total -282,256,547.80 -23,858,493.60
50. Income from asset disposal
Unit: RMB
Amount incurred in the previous
Sources of asset disposal income Current amount incurred
period
Income from disposal of assets 3,885,078.23 12,386,164.33
Total 3,885,078.23 12,386,164.33
51. Non-operating income
Unit: RMB
Current Amount incurred Amount included in non-
Item amount in the previous recurring gain and loss of the
incurred period current period
Income of indemnity 3,271,502.16 8,152,030.22 3,271,502.16
Income from fines and penalties 1,041,311.20 479,539.36 1,041,311.20
When the investment cost of the subsidiary acquired
by the enterprise is less than that of the investment, it
281,497.24
shall enjoy the income generated by the fair value of
the identifiable net assets of the invested entity.
Others 431,757.01 140,387.69 431,757.01
Total 4,744,570.37 9,053,454.51 4,744,570.37
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52. Non-operating expenses
Unit: RMB
Amount included in non-
Amount incurred in the
Item Current amount incurred recurring gain and loss of the
previous period
current period
Total losses from disposal of
102,819.31 1,822,895.25 102,819.31
non-current assets
External donations 11,000,000.00 1,300,000.00 11,000,000.00
late fee 2,832,803.08 2,832,803.08
Penalty expense 550,095.93
Others 165,503.94 859,616.95 165,503.94
Total 14,101,126.33 4,532,608.13 14,101,126.33
53. Income tax expenses
(1) Presentation of income tax expenses
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Income tax expenses in the current period 697,479,472.15 7,319,747,462.46
Deferred income tax expenses -1,448,182,298.28 532,547,190.79
Total -750,702,826.13 7,852,294,653.25
(2) Adjustment of accounting profit and income tax expense
Unit: RMB
Item Amount incurred in the current period
Total profits 5,619,069,226.27
Income tax expense calculated at the applicable tax rate of the
1,404,773,583.78
parent company
Impact of tax rates applied to subsidiaries -527,176,303.49
Influence of income tax during periods prior to adjustment 41,080,061.79
Influence of non-taxable income -174,833,961.51
Impact of R&D cost plus deduction -507,309,665.35
Additional deduction of wages for the disabled -519,386.81
Additional deduction for equipment purchased by high-tech
-49,579,626.89
enterprises in the fourth quarter
Tax credit for the investment amount of enterprise in purchasing
-75,818,281.23
special equipment for environmental protection
Influence of non-deductible costs, expenses and losses 75,088,412.55
Impact of using deductible loss on deferred income tax assets
-26,333,931.69
unrecognized in prior periods
Impact of temporary deductible difference or deductible loss on
339,804,698.11
deferred income tax assets unrecognized in the current period
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Impact of different tax rates applied to the recognition of
-1,249,878,425.38
deferred income tax
Income tax expenses -750,702,826.13
54. Other comprehensive incomes
For details, see Note V (I) 35 of the financial statements for the net amount after tax of other comprehensive
income.
55. Cash flow statement items
(1) Other cash received relating to operating activities
Unit: RMB
Item Current amount incurred Amount incurred in the previous period
Recovery of bills, letters of credit and other deposits 2,866,495,137.32 2,949,165,665.49
Temporary loan received from Zhejiang Rongsheng
200,000,000.00 1,264,300,000.00
Holding Group Co., Ltd.
Interest income received from bank deposits 351,751,026.01 308,568,217.48
Recovery of operating deposit and security deposit 437,519,028.13 228,168,687.59
Government subsidies received 85,667,751.41 102,922,448.29
Others 72,326,626.03 15,684,030.04
Total 4,013,759,568.90 4,868,809,048.89
(2) Other cash paid relating to operating activities
Unit: RMB
Current amount
Item Amount incurred in the previous period
incurred
Payment of bills, letters of credit and other deposits 2,227,779,041.99 2,866,495,137.32
Repayment of temporary loan to Zhejiang Rongsheng
200,000,000.00 1,264,300,000.00
Holding Group Co., Ltd.
Cash disbursements from administrative expenses, R&D
491,786,793.13 520,114,641.86
expenses and sales expenses
Payment of bank charges 270,342,872.02 228,583,346.21
Payment of operating deposit and security deposit 321,584,656.12 86,541,494.70
Others 22,257,019.72 6,647,550.33
Total 3,533,750,382.98 4,972,682,170.42
(3) Other cash received from investment activities
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Receipt of project deposit 241,165,333.31 277,983,728.72
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Recovery of bills, letters of credit and
171,820,956.95 791,886,996.41
other deposits
Recovery of temporary loan and interest
205,188.67 20,323,759.33
from ZPC-ENN (Zhoushan) Gas Co., Ltd.
Recovery of entrusted loan from Zhejiang
430,000,000.00
Yisheng New Materials Co., Ltd.
Net cash received from subsidiaries due to
business combination not under the same 362,049,182.95
control
Recovery of temporary loan from
245,196,642.30
Zhejiang Derong chemicals Co. Ltd.
Recovery of temporary loan and interest
222,096,722.22
from Juxing Chemical Fiber Co., Ltd.
Received royalties 16,527,782.50
Recovery of temporary loan and interest
from Zhejiang Zhenshi Port Service Co., 3,522,190.97
Ltd.
Total 413,191,478.93 2,369,587,005.40
(4) Other cash paid relating to investment activities
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Payment of bills, letters of credit and
300,801,878.44 171,820,956.95
other deposits
Payment of project related security
185,974,340.70 223,118,349.15
deposit
Payment of entrusted loan to Zhejiang
530,000,000.00
Yisheng New Materials Co., Ltd.
Payment of temporary loan to Zhejiang
244,977,000.00
Derong chemicals Co. Ltd.
Payment of temporary loan to ZPC-ENN
4,800,000.00
(Zhoushan) Gas Co., Ltd.
Total 486,776,219.14 1,174,716,306.10
(5) Cash received from other financing activities
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Temporary loan received from Zhejiang
6,290,000,000.00 3,316,000,000.00
Rongsheng Holding Group Co., Ltd.
Recovery of loan deposit 360,000,000.00 126,870,000.00
Entrusted loan received from Zhejiang
988,000,000.00 328,000,000.00
Yisheng Petrochemical Co., Ltd.
Payment received for corporate bonds
494,566,600.00
resale
Payment received for discounted but 6,567,014,988.16
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unexpired L/Cs and notes
Total 14,699,581,588.16 3,770,870,000.00
(6) Other cash paid for financing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the prior period
Repayment of temporary loan to Zhejiang
4,840,158,257.44 3,351,019,903.50
Rongsheng Holding Group Co., Ltd.
Entrusted loan and interest repaid to
1,129,574,324.99 376,515,280.75
Zhejiang Yisheng Petrochemical Co., Ltd.
Payment of financing fees 18,683,439.05 33,234,766.53
Payments for right-of-use assets 32,433,187.97 32,294,131.95
Payment of loan security 265,545,440.00 545,440.00
Payment for stock repurchase 3,978,202,364.65
Payment of bond resale 494,566,600.00
Total 10,759,163,614.10 3,793,609,522.73
56. Supplementary information of Cash Flow Statement
(1) Supplementary information of Cash Flow Statement
Unit: RMB
Amount of prior
Supplementary information Current amount
period
1. Converting net profit into cash flow from operating activities:
Net profit 6,369,772,052.40 24,451,918,051.83
Add: Provision for impairment of assets 297,460,205.64 98,831,980.79
Fixed assets depreciation, oil and gas assets depletion, productive
11,157,350,758.14 6,766,383,069.23
biological assets depreciation
Depreciation of assets with right of use 27,471,659.67 37,187,189.87
Amortization of intangible assets 114,444,041.96 128,891,257.47
Amortization of long-term deferred expenses 67,861.04 1,405,278.17
Loss on disposing fixed assets, intangible assets and other long-term
-3,885,078.23 -12,386,164.33
assets (gains expressed with "-")
Losses on disposal of fixed assets (gains expressed with "-") 102,819.31 1,822,895.25
Loss from changes in fair value (gains expressed with "-") -10,728,066.90 -146,935,772.45
Financial expenses (gains expressed with “-") 6,111,917,702.75 2,978,707,670.20
Loss from investment (gains expressed with "-") -936,615,197.88 -611,068,070.82
Reduction of deferred income tax assets (increase expressed with “-”) -170,881,895.42 -156,750,165.96
Increase of deferred income tax liabilities (decrease expressed with "-") -1,277,300,402.86 689,297,356.75
- -
Decrease in inventories (increase expressed with "-")
13,935,026,846.57 23,212,372,297.26
Decrease of operating receivables (increase expressed with "-") 7,977,342,745.44 -5,123,016,294.04
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Increase in operating payables (decrease expressed with "-") 3,336,644,526.87 30,835,741,755.33
Others -3,162,872,306.09
Net cash flow from operating activities 19,058,136,885.36 33,564,785,433.94
2. Significant investment and financial activities not involving cash receipts and
payments:
Debt into capital
Convertible corporate bonds due within one year
Fixed assets leased under finance leases
3. Net change in cash and cash equivalents:
Ending balance of cash 15,459,279,803.77 14,338,837,644.67
Less: Beginning balance of cash 14,338,837,644.67 6,592,344,043.01
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalents 1,120,442,159.10 7,746,493,601.66
（2）Composition of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 15,459,279,803.77 14,338,837,644.67
Including: cash on hand 947,398.91 1,563,293.44
Bank deposits available for payment at any time 14,971,568,361.00 14,060,975,134.33
Other monetary funds available on demand 486,764,043.86 276,299,216.90
III. Ending balance of cash and cash equivalents 15,459,279,803.77 14,338,837,644.67
(3) Amount of commercial bill endorsement transfer not involving cash receipts and payments
Amount in the current Amount of the prior
Item
period period
Amount of commercial bill transferred by endorsement 2,384,544,577.78 1,187,100,124.60
Including: payment for goods 2,255,269,688.24 1,096,474,426.07
Payment for the purchase of fixed assets and other long-term assets 129,274,889.54 90,625,698.53
(4) Explanation of supplementary information of cash flow statement
The ending balance of cash in the cash flow statement is RMB 15,459,279,803.77, while the ending balance
of monetary funds in the balance sheet is RMB 18,238,774,380.21. The difference is due to the deduction of RMB
2,779,494,576.44 of other monetary funds that do not meet the standards for cash and cash equivalents from the
ending balance of the cash flow statement.
The opening balance of cash in the cash flow statement is RMB 14,338,837,644.67, while the opening
balance of monetary funds in the balance sheet is RMB 17,681,643,415.29. The difference is due to the deduction
of RMB 3,342,805,770.62 of other monetary funds that do not meet the standards for cash and cash equivalents
from the closing balance of the cash flow statement.
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57. Assets with restricted ownership or use rights
Unit: RMB
Original book value at the
Item Reason for restriction
end of the period
See note to monetary funds in the notes to the financial statements
Monetary fund 2,779,494,576.43
for details.
Receivables financing 3,316,973.51 Pledged for issuing bank acceptance bills as collateral
Fixed assets 217,071,880,411.54 Bank loan mortgage, letter of credit mortgage
Construction in progress 20,075,082,279.55 Bank loan mortgage
Intangible assets 4,409,441,534.82 Bank loan mortgage
Total 244,339,215,775.85
58. Monetary items denominated in foreign currencies
(1) Monetary items in foreign currency
Unit: RMB
Ending balance in foreign
Item Translation rate Ending balance in RMB
currencies
Monetary fund
Including: USD 523,437,495.35 6.9646 3,645,532,780.11
EUR 6,732,637.43 7.4229 49,975,694.38
HKD 362,116.83 0.8933 323,478.96
SGD 1,602,768.20 5.1831 8,307,307.86
Accounts receivable
Including: USD 817,318,200.61 6.9646 5,692,294,339. 97
EUR
HKD
Other receivables
Including: USD 29,952,499.64 6.9646 208,607,178.99
Short-term borrowings
Including: USD 222,335,292.80 6.9646 1,548,476,380.23
Accounts payable
Including: USD 6,562,499,088.22 6.9646 45,705,181,149. 82
EUR 42,527,006.86 7.4229 315,673,719.22
Other payables
Including: USD 5,451,071.47 6.9646 37,964,532. 36
Non-current liabilities due
within one year
Including: USD 149,585,746.07 6.9646 1,041,804,887.08
Long-term borrowings
Including: USD 266,361,844.44 6.9646 1,855,103,701.79
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EUR 50,004,605.08 7.4229 371,179,183. 05
HKD
(2) Description of the overseas operating entity, including important overseas operating entity, shall
disclose its main overseas business place, recording currency and the basis for selection, and shall also
disclose reasons in the case of changes in recording currency.
Place of Recording
Company name Selection basis
registration currency
Hong Kong Sheng Hui Co., Ltd. Hong Kong, China
Hong Kong Yisheng Dahua Petrochemical Co., Ltd. Hong Kong, China
Zhejiang Yisheng New Materials Co., Ltd. Hong Kong, China
General settlement currency
Rongsheng Petrochemical (Singapore) Pte. Ltd. Singapore USD
for company operation
Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd. Singapore
Rongtong Logistics (Singapore) Pte. Ltd. Singapore
Rongsheng Petrochemical (Hong Kong) Co., Ltd. Hong Kong, China
59. Government grants
(1) Basics of government grants
Unit: RMB
Amounts included in
Category Amount Presented items
current gain and loss
Government grants related to assets 31,347,901.84 Other income 31,347,901.84
Income-related government grants for
2,328,129,612.92 Other income 2,328,129,612.92
compensation for incurred relevant costs or losses.
(2) Return of government subsidies
1) Government grants related to assets
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New
Amortizati Amortization in
Beginning grants in Ending
on in the Other
Item deferred deferred current period Remarks
the current current decreases
income income
period Presented items
period
Construction
funds for Funds allocated by the Finance Bureau of Dalian Jinzhou New Area for
infrastructure 45,149,999.62 3,685,714.32 41,464,285.30 Other incomes supporting project construction of a wharf, sewage treatment and other
supporting infrastructure.
projects
Reply of Zhejiang Provincial Development and Reform Commission on
National special
43,692,777.75 3,382,666.67 40,310,111.08 Other incomes the approval of 40 MTPA Refining and Chemical Integration Project for
subsidy fund
Zhejiang Petroleum & Chemical Co., Ltd.
The first batch of special subsidy funds for the clean transformation of
Subsidy fund for coal-fired boilers of Hangzhou coal-fired power plants (thermal power)
boiler cleaning 25,202,176.59 2,359,851.84 22,842,324.75 Other incomes and other industrial enterprises issued by Hangzhou Municipal Bureau of
transformation Finance and Hangzhou Municipal Ecology and Environment Bureau in
2002.
Seawater
desalination
Special funds allocated by the Daishan County Development and Reform
project of
17,870,666.56 1,374,666.72 16,495,999.84 Other incomes Bureau for investment projects in the central budget for the construction
Zhoushan Green
of ecological civilization in 2019.
Petrochemical
Base (phase I)
Interest subsidy
Interest subsidy fund for PTA project loan granted by Dalian Finance
fund for PTA 12,107,388.18 5,381,058.24 6,726,329.94 Other incomes
Bureau.
project loan.
Subsidy fund for
industrial
technological Funds allocated by Hangzhou Municipal Finance Bureau and Xiaoshan
transformation 12,276,445.97 2,006,611.83 10,269,834.14 Other incomes District Finance Bureau for industrial technological transformation
projects in projects.
Xiaoshan
District.
Government The fifth batch of special financial incentive funds (for promoting
subsidies for industrial development) for revitalizing the real economy (transformation
16,400,000.01 1,800,000.00 14,600,000.01 Other incomes
imported of traditional industries) issued by Shaoxing Keqiao District Finance
equipment Bureau and Shaoxing Keqiao District Economic and Information Bureau.
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Subsidy for
closed seawater
cooling system Subsidy for closed seawater cooling system project of science and
project of 6,149,861.67 2,733,345.36 3,416,516.31 Other incomes technology program granted by the Finance Bureau of Dalian Economic
science and and Technological Development Zone.
technology
program.
Financial
Financial subsidy fund for land change allocated by the Finance Bureau
subsidy for land 8,444,267.42 248,970.96 8,195,296.46 Other incomes
of Dalian Economic and Technological Development Zone.
change
Subsidy for
recycling
The central subsidy fund for the demonstration pilot project of circular
transformation
12,442,222.20 2,073,703.68 10,368,518.52 Other incomes transformation of the park in 2013 allocated by the Finance Bureau of
project of
Dalian Jinpu New Area.
mother solid
project.
Subsidy for
100,000 tons of
environmental Funds allocated by Hangzhou Municipal Bureau of Finance and Xiaoshan
protection and 3,574,545.52 612,779.04 2,961,766.48 Other incomes District Bureau of Finance for enterprise technological transformation
healthy projects.
multifunctional
fiber project.
Special subsidy
for provincial
science and Subsidy for provincial key R&D projects allocated by the Science and
3,000,000.00 3,000,000.00
technology Technology Department of Zhejiang Province
development in
2019
Subsidy for low
nitrogen Subsidy for low nitrogen transformation of gas-fired boilers issued by
transformation 1,534,394.32 171,328.32 1,363,066.00 Other incomes Shaoxing Keqiao District Finance Bureau and Keqiao Branch of
of gas-fired Shaoxing Ecological Environment Bureau
boiler
Special fund for
Special subsidy allocated by the Dalian Finance Bureau for the "fiber
1.2 million tons
1,499,999.32 666,666.72 833,332.60 Other incomes grade purified terephthalic acid (PTA) project with an annual output of
of PTA major
1.2 million tons".
project
90,000 tons of Subsidy funds allocated by Xiaoshan District Finance Bureau for the
1,689,800.00 298,200.00 1,391,600.00 Other incomes
PTT project project of PTT new chemical fiber with an annual output of 90,000 tons.
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Support fund for
mother solid
recovery system
project of PTA Subsidy allocated by the Finance Bureau of Dalian Economic and
refining unit 1,083,000.17 481,333.32 601,666.85 Other incomes Technological Development Zone for the "mother solid recovery system
within the project of PTA refining unit" within the science and technology program.
science and
technology
program.
Interest subsidy
for supporting
industrial
Interest subsidy for supporting industrial projects in the "five points and
projects in the
one line" coastal economic belt park of Liaoning Province allocated by
"five points and 1,080,000.00 480,000.00 600,000.00 Other incomes
the Finance Bureau of Dalian Economic and Technological Development
one line" coastal
Zone.
economic belt
park of Liaoning
Province.
Subsidy fund for
key industrial
Interest subsidy for technological transformation of enterprises allocated
technological 113,462.27 56,231.76 57,230.51 Other incomes
by Hangzhou Finance Bureau.
transformation
projects.
Interest subsidy
for enterprise Funds allocated by Xiaoshan District Finance Bureau for key industria l
101,428.59 50,714.28 50,714.31 Other incomes
technological technological transformation projects.
transformation
Special financial
funds for industrial
and information Notice on Issuing the Provincial Special Financial Funds for Industrial and Information
technology 10,000,000.00 222,222.24 9,777,777.76 Other incomes Development in 2021 (Second Batch) (ZCJF [2022] No. 4) issued by the Zhoushan
development, asset- Finance Bureau and Zhoushan Economic and Information Bureau
based government
subsidies
Technical Notice on Issuing Financial Assistance Funds for the Second Batch of Hangzhou
renovation of Manufacturing Enterprise Technical Transformation Projects in 2021 by the Hangzhou
intelligent Municipal Finance Bureau (H.C.Q. [2021] No.77); Notice on Issuing the District Level
conveying and 1,459,314.00 81,386.59 1,377,927.41 Other incomes Supporting Facilities for the Second Batch of Municipal Manufacturing Enterprise
packaging for Technical Transformation Projects in 2021 by the Finance Bureau of Xiaoshan District
polyester low- and the Economic and Information Technology Bureau of Xiaoshan District, Hangzhou
stretch yarn City (X.C.Q. [2022] No. 13)
Special incentive Special incentive funds for supply chain innovation and application in Zhoushan Green
project for supply 600,000.00 13,333.33 586,666.67 Other incomes Petrochemical Base
chain innovation
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and application
Equipment for the
functional polyester
Notice on Issuing the Special Financial Incentive Fund for High Starting Point Planning
film expansion
of Industrial Projects in Keqiao District in 2021 (Third Batch) by the Economic and
project with an 1,199,800.00 59,989.98 1,139,810.02 Other incomes Information Technology Bureau of Keqiao District, Shaoxing City and the Finance
annual output of
Bureau of Keqiao District, Shaoxing City (S.K.J.X. [2022] No.36)
250,000 tons per
year
The special financial funds for energy conservation and industrial circular economy of
Others 338,905.41 107,126.64 231,778.77 Other incomes Zhejiang Province allocated by Xiaoshan District Finance Bureau.
Subtotal 213,751,341.57 13,259,114.00 31,347,901.84 195,662,553.73
2) Income-related government grants for compensation for incurred relevant costs or losses
Presented
Item Amount Notes
item
Financial The Investment Agreement for Zhoushan Green Petrochemical Base issued by the People's Government of Zhoushan City, the Reply on Confirmation of Financial Rewards issued
Other
incentive 2,206,650,000.00 by the Management Committee of Zhoushan Green Petrochemical Base, the Confirmation Letter on Granting Subsidy Rewards, and the Letter on Confirmation of Financial
incomes
funds Rewards issued by the Economic Special Class of Xiaoshan District Headquarters
Notice on Issues Related to Unemployment Insurance Supporting Enterprises to Stabilize Posts by the Human Resources and Social Security Bureau of Hangzhou City (H.R.S.F.
[2015] No.307); Notice on Issuing Incentive and Subsidy Funds for Manufacturing Enterprises in Xiaoshan District in the Third Quarter of 2022 issued by Finance Bureau and
Economic and Information Technology Bureau of Xiaoshan Strict of Hangzhou City (X.C.Q. [2022] No.130); Notice on Appropriation of Special Subsidy Funds for Cultivation of
Science and Technology Innovation Entities in Jinpu New Area from 2017 to 2019 by Science and Technology Bureau of Dalian Jinpu New Area (D.J.P.K.F. [2021] No.12);
Financial
Other Notice on Further Improving the Subsidy Work for One-off Employee Retention Training issued by Hangzhou Municipal Human Resources and Social Security Bureau (H.R.S.B.F.
support 116,262,912.92
incomes [2022] No.17); Notice on Issuing the 2022 Ningbo Energy Conservation Special Fund (Second Batch) by the Ningbo Municipal Finance Bureau and Ningbo Municipal Energy
funds
Bureau (Y.C.J.[2022] No. 688); Notice on Doing Well in Stabilizing Unemployment Insurance Positions, Improving Skills and Preventing Unemployment by the Department of
Human Resources and Social Security of Zhejiang Province, the Department of Finance of Zhejiang Province, and the State Admin istration of Taxation (H.R.S.F. [2022] No. 23);
Notice on Issuing the Provincial Special Financial Funds for Industrial and Information Development in 2022 (Second Batch) (ZCJF [2022] No. 27) issued by the Zhoushan
Finance Bureau and Zhoushan Economic and Information Bureau, etc.
Industrial
Notice on Issuing the Subsidy Fund for Kunpeng Enterprises in Xiaoshan District in 2020 by the Finance Bureau of Xiaoshan District and the Economic and Information
development Other
2,521,700.00 Technology Bureau of Xiaoshan District, Hangzhou City (X. C. Q. [2022] No. 44); Notice on Further Improving the Work of Helping Enterprises Make a Good Start (X.z.b. [2022]
promotion incomes
No. 3) issued by the Office of the People's Government of Xiaoshan District, Hangzhou, etc.
fund
Subsidy
Notice on Completing the Application Work for the 2020 Hangzhou "115" Introduction of Foreign Intelligence Program Projects by the Hangzhou Municipal Bureau of Science
fund for
Other and Technology; Notice on Completing the Application Work for the 2021 Hangzhou "115" Introduction of Foreign Intelligence Program Projects by the Hangzhou Municipal
professional 1,430,000.00
incomes Bureau of Science and Technology (HKWZ [2021] No.2); Notice on Allocating Support Funds for "Zhejiang Craftsmen" and "Zhejiang Young Craftsmen" in 2021 (X.R.S [2022]
talents
No. 56) issued by the Finance Bureau of Xiaoshan District, Hangzhou City, and the Federation of Trade Unions of Xiaoshan District, Hangzhou City, etc.
introduction
Notice on Issuing the Management Measures for Social Emergency Rescue Linkage Teams in Ningbo City for Work Safety by the Ningbo Emergency Management Bureau (Y.Y.J.
Other
Other [2020] No. 49); Notice on Launching the Application for "Top Ten Contributing Enterprises," "Top Ten Technological Innovation Enterprises," and "Top Ten Commercial Service
rewards and 1,265,000.00
incomes Enterprises" in Qianjiang Century Century in 2021 by the Management Committee of Qianjiang Century City, and Notice on Realizing Special Incentive Funds for Technological
subsidies
Innovation by the Science and Technology Bureau of Keqiao District, Shaoxing City (S.K.K. [2022] No. 7), etc.
Subtotal 2,328,129,612.92
The amount of government subsidies included in the current gain and loss is RMB 2,359,477,514.76.
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VIII. Changes in the Scope of Consolidated Financial Statements
1. Changes in consolidation scope for other reasons
Describe combination range change due to other reasons (such as establishment of a new subsidiary, liquidation of a subsidiary, etc.) and its relevant circumstances.
Increase in consolidation scope
Acquisition
Company name Date of equity acquisition Amount of contribution Ratio of contribution
method
New
Ningbo Rongxincheng Trading Co., Ltd. October 9, 2022 10,000,000.00 100%
establishment
New
Yisheng New Materials Trading Co., Ltd. October 22, 2021 100%
establishment
New
Zhoushan ZPC Sales Co., Ltd. July 15, 2022 60,000,000.00 100%
establishment
ZPC (Zhejiang Free Trade Zone) Green Petrochemical New
January 6, 2022 50,000,000.00 100%
Research Institute Co., Ltd. establishment
New
Rongsheng New Materials (Zhoushan) Co., Ltd. January 28, 2022 130,000,000.00 100%
establishment
New
Rongsheng New Materials (Taizhou) Co., Ltd. May 7, 2022 281,990,000.00 100%
establishment
[Note] Yisheng New Materials Trading Co., Ltd. was established on October 22, 2021, and was established for accounting in 2022.
2. Decrease in consolidation scope
Net assets on the disposal Net profits from the beginning of
Company name Method of equity disposal Date of disposal
date the period to the disposal date
Zhejiang FreeTrade Zone Rongxin Trade Co.,
Cancellation April 8, 2022 -56,141.59
Ltd.
Rongxiang (Shanghai) Chemical Co., Ltd. Cancellation February 8, 2022 13,298.12
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IX. Equities in Other Entities
1. Rights and interests in subsidiaries
(1) Group composition
Principal place of Place of Shareholding ratio
Name of subsidiary Business nature Acquisition method
business registration Direct Indirect
Xiaoshan, Xiaoshan,
Zhejiang Shengyuan Chemical Fiber Co., Ltd. Manufacturing 100.00% Opening new operations
Zhejiang Zhejiang
Business combinations
Hong Kong Sheng Hui Co., Ltd. Hong Kong, China Hong Kong, China Commercial 100.00%
under the same control
Ningbo Yisheng Chemical Co., Ltd Ningbo, Zhejiang Ningbo, Zhejiang Manufacturing 95.00% Opening new operations
Dalian Yisheng Investment Co., Ltd Dalian, Liaoning Dalian, Liaoning Manufacturing 70.00% Opening new operations
Yisheng Dahua Petrochemical Co., Ltd. Dalian, Liaoning Dalian, Liaoning Manufacturing 84.60% Opening new operations
Hong Kong Yisheng Dahua Petrochemical Co., Ltd. Hong Kong, China Hong Kong, China Commercial 100.00% Opening new operations
Dalian Rongxincheng Trading Co., Ltd. Dalian, Liaoning Dalian, Liaoning Commercial 100.00% Opening new operations
Xiaoshan, Xiaoshan,
Zhejiang Rongtong Chemical Fiber New Material Co., Ltd. Commercial 100.00% Opening new operations
Zhejiang Zhejiang
Dalian Yisheng New Materials Co., Ltd. Dalian, Liaoning Dalian, Liaoning Manufacturing 100.00% Opening new operations
Business combination
Ningbo Zhongjin Petrochemical Co., Ltd. Ningbo, Zhejiang Ningbo, Zhejiang Manufacturing 100.00%
under the same control
Ningbo Niluoshan New Energy Co., Ltd. Ningbo, Zhejiang Ningbo, Zhejiang Manufacturing 100.00% Opening new operations
Business combination
Zhejiang Yisheng New Materials Co., Ltd. Ningbo, Zhejiang Ningbo, Zhejiang Manufacturing 51.00% not under the same
control
Ningbo Xinrongcheng Trading Co., Ltd. Ningbo, Zhejiang Ningbo, Zhejiang Commercial 100.00% Opening new operations
Zhejiang Yisheng New Materials Co., Ltd. Ningbo, Zhejiang Ningbo, Zhejiang Commercial 100.00% Opening new operations
Zhejiang Rongyi Trading Co., Ltd. Ningbo, Zhejiang Ningbo, Zhejiang Commercial 100.00% Opening new operations
Rongsheng Petrochemical (Singapore) Pte. Ltd. Singapore Singapore Commercial 100.00% Opening new operations
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Rongtong Logistics (Singapore) Pte. Ltd. Singapore Singapore Commercial 100.00% Opening new operations
Rongsheng Petrochemical (Hong Kong) Co., Ltd. Hong Kong, China Hong Kong, China Commercial 100.00% Opening new operations
Xiaoshan, Xiaoshan,
Rongsheng International Trading Co., Ltd. Commercial 100.00% Opening new operations
Zhejiang Zhejiang
Zhoushan, Zhoushan, Business combinations
Zhejiang Petroleum & Chemical Co., Ltd. Manufacturing 51.00%
Zhejiang Zhejiang under the same control
Zhoushan, Zhoushan, Business combinations
Zhoushan Yushan Petrochemical Engineering Co., Ltd. Manufacturing 100.00%
Zhejiang Zhejiang under the same control
Zhoushan, Zhoushan,
ZPC Zheyou Technology Co., Ltd. Manufacturing 70.00% Opening new operations
Zhejiang Zhejiang
Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd. Singapore Singapore Commercial 100.00% Opening new operations
Zhoushan, Zhoushan,
ZPC Jintang Logistics Co., Ltd. Commercial 100.00% Opening new operations
Zhejiang Zhejiang
Xiaoshan, Xiaoshan,
Zhejiang ZPC Sales Co., Ltd. Commercial 100.00% Opening new operations
Zhejiang Zhejiang
Zhoushan, Zhoushan,
Zhoushan ZPC Sales Co., Ltd. Commercial 100.00% Opening new operations
Zhejiang Zhejiang
ZPC (Zhejiang Free Trade Zone) Green Petrochemical Zhoushan, Zhoushan,
Commercial 100.00% Opening new operations
Research Institute Co., Ltd. Zhejiang Zhejiang
Xiaoshan, Xiaoshan,
Rongxiang Chemical Fiber Co., Ltd. Manufacturing 100.00% Opening new operations
Zhejiang Zhejiang
Shaoxing, Shaoxing, Business combinations
Zhejiang Yongsheng Technology Co. Ltd. Manufacturing 70.00%
Zhejiang Zhejiang under the same control
Shaoxing, Shaoxing,
Zhejiang Zhuosheng Industry & Trade Co., Ltd. Commercial 100.00% Opening new operations
Zhejiang Zhejiang
Hainan Rongsheng International Trade Co., Ltd. Danzhou, Hainan Danzhou, Hainan Commercial 100.00% Opening new operations
Rongsheng Chemical (Shanghai) Co., Ltd. Shanghai, China Shanghai, China Commercial 100.00% Opening new operations
Zhoushan, Zhoushan,
Rongsheng New Material (Zhoushan) Co., Ltd. Manufacturing 100.00% Opening new operations
Zhejiang Zhejiang
Rongsheng New Material (Taizhou) Co., Ltd. Taizhou, Zhejiang Taizhou, Zhejiang Manufacturing 100.00% Opening new operations
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(2) Major non-wholly owned subsidiaries
Unit: RMB
gain and loss attributable to Dividend announced to be
Shareholding ratio of minority Ending balance of minority
Name of subsidiary minority shareholders in the distributed to minority
shareholders equity
current period shareholders in the current period
Dalian Yisheng Investment Co., Ltd 30.00% 127,094,005.96 2,026,098,321.83
Yisheng Dahua Petrochemical Co., Ltd. 15.40% -21,400,274.63 1,066,179,502.23
Zhejiang Yisheng New Materials Co., Ltd. 49.00% -131,221,424.86 1,394,082,041.80
Zhejiang Petroleum & Chemical Co., Ltd. 49.00% 3,046,948,975.78 2,450,000,000.00 45,199,444,706.13
Zhejiang Yongsheng technology Co. Ltd. 30.00% 8,188,341.21 219,595,306.21
(3) Main financial information of important partially-owned subsidiaries
Unit: RMB
Ending balance Beginning balance
Name of Non- Non- Non- Non-
subsidiary Current Total Current Total Current Total Current Total
current current current current
asset assets liabilities liabilities asset assets liabilities liabilities
assets liabilities assets liabilities
Dalian Yisheng 7,863,016, 9,670,921, 17,533,937 9,020,135, 877,263,39 9,897,398, 7,715,553, 8,909,244, 16,624,797 8,387,366, 1,087,673, 9,475,039,
Investment Co., Ltd 267.32 048.60 ,315.92 075.15 8.54 473.69 073.98 736.44 ,810.42 434.19 482.82 917.01
Yisheng Dahua
9,702,998, 6,368,833, 16,071,832 9,017,987, 877,263,39 9,895,250, 8,793,138, 6,663,520, 15,456,659 8,120,170, 1,087,673, 9,207,843,
Petrochemical Co.,
995.48 973.65 ,969.13 092.36 8.54 490.90 776.82 619.64 ,396.46 116.58 482.82 599.40
Ltd.
Zhejiang Petroleum
66,428,36 220,440,13 286,868,49 73,204,39 121,717,08 194,921,48 60,232,72 204,175,31 264,408,03 76,184,56 102,131,57 178,316,14
& Chemical Co.,
0,516.70 7,988.94 8,505.64 2,158.98 9,146.90 1,305.88 4,784.09 1,871.70 6,655.79 5,745.11 4,319.18 0,064.29
Ltd.
Zhejiang
603,435,0 1,678,225, 2,281,661, 841,912,1 707,764,51 1,549,676, 786,518,5 988,613,59 1,775,132, 767,926,6 302,515,55 1,070,442,
Yongsheng
56.35 947.80 004.15 39.62 0.53 650.15 42.14 7.41 139.55 98.80 7.44 256.24
technology Co. Ltd.
Zhejiang Yisheng
3,175,435, 9,113,541, 12,288,977 7,823,185, 1,605,762, 9,428,948, 2,702,063, 8,932,839, 11,634,902 6,288,300, 2,233,114, 8,521,414,
New Materials Co.,
983.29 928.71 ,912.00 859.65 652.80 512.45 049.38 676.74 ,726.12 160.67 583.70 744.37
Ltd.
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Unit: RMB
Current amount incurred Amount incurred in the previous period
Name of Total Cash flows from Total Cash flows from
subsidiary Operating income Net profit comprehensive operating Operating income Net profit comprehensive operating
income activities income activities
Dalian Yisheng
29,747,828,875.56 405,244,408.13 444,753,213.12 888,943,615.77 29,402,156,939.80 -512,976,295.67 -509,876,436.60 1,005,444,756.48
Investment Co., Ltd
Yisheng Dahua
Petrochemical Co., 29,747,828,875.56 -119,472,040.53 -72,233,318.83 386,340,641.09 29,402,156,939.81 -686,974,859.07 -685,867,384.15 609,487,159.99
Ltd.
Zhejiang Petroleum
& Chemical Co., 230,163,720,208.29 6,052,043,366.76 6,051,889,116.30 22,092,257,895.11 121,198,606,144.32 23,050,562,795.64 23,079,109,844.53 26,760,544,698.60
Ltd.
Zhejiang
Yongsheng 2,258,494,319.98 27,294,470.69 27,294,470.69 510,094,394.64 2,207,476,013.33 379,738,120.77 379,738,120.77 -101,798,811.27
technology Co. Ltd.
Zhejiang Yisheng
New Materials Co., 33,708,553,178.23 -251,997,551.76 -252,396,220.69 557,152,030.10 9,918,998,763.54 61,819,820.57 61,819,820.57 47,558,458.43
Ltd.
2. Equity in joint ventures or associated enterprises
(1) Important joint ventures or associated enterprises
Name of the joint venture or Principal place of Place of Shareholding ratio Accounting method for investments in joint
Business nature
associated enterprise business registration Direct Indirect ventures and associated enterprises
Zhejiang Yisheng Petrochemical Co.,
Ningbo, Zhejiang Ningbo, Zhejiang Manufacturing 16.07% 13.93% Accounting by the equity method
Ltd.
Hainan Yisheng Petrochemical Co., Ltd. Yangpu, Hainan Yangpu, Hainan Manufacturing 50.00% Accounting by the equity method
Ningbo Hengyi Trading Co., Ltd Ningbo, Zhejiang Ningbo, Zhejiang Commercial 30.00% Accounting by the equity method
Zhejiang Xiaoshan Rural Commercial
Xiaoshan, Zhejiang Xiaoshan, Zhejiang Finance 9.71% Accounting by the equity method
Bank Co., Ltd.
Basis for one having voting rights of below 20% and significant influences or one having voting rights of 20% or above but no significant influences:
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The company holds 9.712% of the shares of Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. and has a representative on the board of directors of the
company, who has the substantive right to participate in decision-making. The representative can participate in the formulation of financial and operating policies of
Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd., so as to exert significant influence on it.
(2) Main financial information of important associated enterprises
Unit: RMB
Ending balance/amount incurred in the current period Beginning balance/amount incurred in the prior period
Zhejiang Yisheng Hainan Yisheng Zhejiang Xiaoshan Zhejiang Yisheng Hainan Yisheng Zhejiang Xiaoshan
Ningbo Hengyi Ningbo Hengyi
Petrochemical Petrochemical Rural Commercial Petrochemical Petrochemical Rural Commercial
Trading Co., Ltd. Trading Co., Ltd.
Co., Ltd. Co., Ltd. Bank. Co., Ltd. Co., Ltd. Bank.
Current asset 15,176,421,030.33 5,152,846,491.05 287,114,550.78 279,872,297,396.44 13,925,029,252.49 5,692,696,309.03 558,104,813.53 183,563,439,674.23
Non-current
3,593,134,697.01 7,192,824,373.67 3,450,161,589.10 3,237,528,020.59 4,015,230,448.69 5,761,418,676.67 2,895,857,322.78 55,427,378,428.94
assets
Total assets 18,769,555,727.34 12,345,670,864.72 3,737,276,139.88 283,109,825,417.03 17,940,259,701.18 11,454,114,985.70 3,453,962,136.31 238,990,818,103.17
Current
9,101,100,209.73 4,166,702,054.87 2,968,960,871.83 255,066,384,587.60 7,901,860,289.20 5,801,102,638.20 2,812,659,641.56 209,590,669,354.56
liabilities
Non-current
733,508,577.50 1,752,991,337.36 0.00 7,200,472,723.92 907,070,818.70 835,643,407.65 10,734,813,506.22
liabilities
Total liabilities 9,834,608,787.23 5,919,693,392.23 2,968,960,871.83 262,266,857,311.52 8,808,931,107.90 6,636,746,045.85 2,812,659,641.56 220,325,482,860.78
Minority equity 273,191,261.65
Shareholders'
equity
attributable to 8,934,946,940.11 6,425,977,472.49 768,315,268.05 20,569,776,843.86 9,131,328,593.28 4,817,368,939.85 641,302,494.75 18,665,335,242.39
the parent
company
Share of net
assets calculated
by the 2,680,484,082.03 3,212,988,736.25 230,494,580.42 1,997,736,727.08 2,739,398,577.98 2,158,684,469.93 192,390,748.43 1,812,777,358.74
shareholding
ratio
Adjustments
- Goodwill 102,420,700.00 4,040,400.00 102,420,730.97 4,040,414.35
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--Unrealized
profits from
-12,523,708.66 -14,582,400.49
internal
transactions
--Others 11,273,596.91 30.97 1,238,672.03 4,302,713.07 11,273,596.92 1,238,672.03 5,679,587.65
Book value of
equity
investment in 2,691,757,678.94 3,302,885,758.56 231,733,252.44 2,006,079,840.15 2,750,672,174.90 2,246,522,800.41 193,629,420.45 1,822,497,360.74
associated
enterprise
Fair value of
equity
investment in
associated
enterprise with
the public offer
Operating
21,386,152,052.27 22,716,982,913.38 11,484,540,836.90 6,359,496,651.71 30,308,423,232.02 16,804,595,536.76 13,327,029,392.53 5,723,057,439.93
income
Net profit -171,937,538.81 1,040,012,894.66 92,714,954.31 2,475,781,182.70 382,672,770.10 342,177,185.37 -229,570,490.29 1,637,177,704.17
Net profit from
termination of
operation
Other
comprehensive -24,444,114.36 68,595,637.98 34,297,818.99 -603,830,133.66 33,430,371.72 -2,058,635.36 -1,029,047.68 164,523,585.41
income
Total
comprehensive -196,381,653.17 1,108,608,532.64 127,012,773.30 1,871,951,049.04 416,103,141.82 340,118,550.01 -230,599,537.97 1,801,701,289.58
income
Dividends
received from
associated 39,685,918.80 12,026,036.00
enterprises in the
current year
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(3) Summary of the financial information of minor joint ventures and associated enterprises
Unit: RMB
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period the prior period
Associated enterprise:
Total book value of investments 500,873,276.26 577,547,654.71
Total of the following items calculated as
per the respective shareholding proportion
--Net profit -124,916,421.83 -334,920,400.19
--Other comprehensive income -154,250.46 -1,733,255.24
--Total comprehensive income -125,070,672.29 -336,653,655.43
X. Risks Relating to Financial Instruments
The Company conducts risk management to seek the appropriate balance between the risks and benefits from
its use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on
the Company's financial performance. Based on this objective, the Company's basic policy for risk management is
to confirm and analyze all kinds of risks faced by the Company, set up an appropriate risk bottom line, conduct
risk management, and monitor all risks promptly and reliably to limit risks within a specific range.
The Company faces various risks related to financial instruments in its daily activities, mainly including
credit risk, liquidity risk and market risk. The Management has deliberated and approved the policies governing
such risks, as outlined below.
(I) Credit risk
Credit risk refers to the risk that may bring financial loss to one party of the financial tool caused by the other
party's failure to perform its obligations in the contract.
1. Practice of credit risk management
(1) Evaluation method of credit risk
On each balance sheet date, the Company assesses whether the credit risk of relevant financial instruments
has increased significantly since initial recognition. When confirming whether the credit risks have increased
significantly since the initial recognition, the Company considers reasonable and well-founded information,
including qualitative and quantitative analysis based on the Company's history data, external credit risk ratings
and forward-looking information, without incurring additional costs or efforts. Based on a single financial
instrument or a combination of financial instruments with similar credit risk characteristics, the Company
compares the default risks of the financial instruments on the balance sheet date with the default risks on the
initial recognition date so as to determine changes in the expected default risks of financial instruments during the
duration.
When one or more of the following quantitative and qualitative criteria is/are triggered, the Company
considers that the credit risks of financial instruments have increased significantly:
1) The quantitative criteria mainly refer to that the probability of default of the remaining duration on the
balance sheet date increases by more than a certain proportion compared with the initial recognition.
2) The qualitative criteria mainly include significant adverse changes in the debtor's business or financial
situation, and existing or expected changes in the technical, market, economic or legal environment, which will
have a significant adverse impact on the debtor's repayment ability to the Company, etc.
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(2) Definition of default and credit-impaired assets
When a financial instrument meets one or more of the following conditions, the Company defines the
financial asset as a default, and its standard is consistent with the definition of credit impairment:
1) The debtor has major financial difficulties;
2) The debtor violates the binding provisions on the debtor in the contract;
3) The debtor is likely to go bankrupt or undergo another financial restructuring;
4) The creditor gives the debtor concessions that the debtor would not make under any other
circumstances due to economic or contractual considerations related to the debtor's financial
difficulties.
2. Measurement of expected credit loss
Key parameters for measuring expected credit loss include the probability of default (PD), loss given default
(LGD) and exposure at default (EAD). The Company has taken into account the quantitative analysis and
forward-looking information of historical statistical data (such as counterparty rating, guarantee method, collateral
type and repayment method), and established the PD, LGD and EAD models.
3. For the reconciliation between the opening balance and the closing balance of the provision for loss
of financial instruments, please see notes V (I) 3 and V (i) 6 of the financial statements for details.
4. Credit risk exposure and credit risk concentration
The credit risk to the Company mainly comes from monetary funds and accounts receivable. In order to
control the above related risks, the Company has taken the following measures respectively.
(1) Monetary fund
The Company deposits bank deposits and other monetary funds in financial institutions with high credit
rating, so its credit risk is low.
(2) Receivables
The Company regularly evaluates the credit of customers who trade by credit. According to the
credit evaluation results, the Company chooses to trade with recognized customers with good credit
and monitors their accounts receivable balance to ensure that the Company will not face significant
bad debt risk.
Since the Company only conducts transactions with recognized third parties with good credit, no collateral is
required. Credit risk concentration is managed according to customers. As of December 31, 2022, the Company
has a certain credit concentration risk, because 57.71% (December 31, 2021: 51.15%) of the Company's accounts
receivable are from the top five customers ranking in terms of balance. The Company holds no collateral or other
credit enhancement for the balance of accounts receivable.
The maximum credit risk exposure of the Company is the book value of each financial asset on
the balance sheet.
(II) Liquidity risk
Liquidity risk refers to the risk of occurrence of capital shortage when the Company fulfills its obligations
settled by delivering cash or other financial assets. Liquidity risk may result from the inability to sell financial
assets at fair value as soon as possible; or because the other party is unable to repay its contractual debts; or from
debts due in advance; or from the inability to generate expected cash flow.
In order to control this risk, the Company comprehensively uses various financing means, such
as bill settlement and bank loan, and adopts the method of the appropriate combination of long-term
and short-term financing methods to optimize the financing structure, so as to maintain the balance
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between financing sustainability and flexibility. The Company has obtained bank credit lines from a
number of commercial banks to meet working capital needs and capital expenditure.
Financial liabilities are classified by remaining maturity date
Ending balance
Item Undiscounted
Book value Within 1 year 1-3 years Above 3 years
contract price
Bank borrowings 177,771,036,728.59 226,673,503,345.00 43,948,504,913.77 40,986,100,131.36 141,738,898,299.87
Trading financial
588,769,711.55 588,769,711.55 588,769,711.55
liabilities
Notes payable 3,408,800,462.03 3,408,800,462.03 3,408,800,462.03
Accounts payable 69,079,366,976.43 69,079,366,976.43 69,079,366,976.43
Other payables 3,472,604,671.47 3,472,604,671.47 3,472,604,671.47
Bonds payable 2,034,827,122.23 2,146,200,000.00 73,100,000.00 2,073,100,000.00
Lease liabilities 235,690,816.58 273,722,334.25 23,875,292.60 42,762,902.46 207,084,139.19
Subtotal 256,591,096,488.88 305,642,967,500.73 120,595,022,027.85 43,101,963,033.82 141,945,982,439.06
(Cont.)
Ending balance
Item Undiscounted
Book value Within 1 year 1-3 years Above 3 years
contract price
Bank borrowings 160,341,870,641.76 212,505,605,319.51 51,552,425,565.18 22,101,099,754.94 138,852,079,999.39
Trading financial
214,744,004.37 214,744,004.37 214,744,004.37
liabilities
Notes payable 2,486,446,489.85 2,486,446,489.85 2,486,446,489.85
Accounts payable 57,988,810,816.03 57,988,810,816.03 57,988,810,816.03
Other payables 2,102,611,949.60 2,102,611,949.60 2,102,611,949.60
Bonds payable 2,042,929,924.77 2,286,800,000.00 95,600,000.00 2,191,200,000.00
Lease liabilities 257,516,951.73 337,998,065.20 33,654,985.85 66,875,006.40 237,468,072.95
Subtotal 225,434,930,778.11 277,923,016,644.56 114,474,293,810.88 24,359,174,761.34 139,089,548,072.34
(III) Market risk management
Market risk means a risk that the fair value or future cash flow of the financial instrument fluctuates due to
changes in market price. Market risk mainly includes interest rate risk and foreign exchange risk.
1. Interest rate risk
Interest rate risk refers to the risk that the fair value of financial instruments or cash flow in the
future may fluctuate due to changes in the market interest rate. The interest-bearing financial
instruments with fixed interest rates expose the Company to fair value interest rate risk, and the
interest-bearing financial instruments with floating interest rates expose the Company to cash flow
interest rate risk. The Company determines the ratio of fixed interest rate and floating interest rate
financial instruments according to the market environment, and maintains an appropriate
combination of financial instruments through regular review and monitoring. The cash flow interest
rate risk faced by the Company is mainly related to the bank borrowings with floating interest rates.
As of December 31, 2022, the bank borrowings with a floating interest rate of the Company are RMB
138,260.1218 million, USD 417.9 million, and EUR 49.8866 million (December 31, 2021: RMB 116,077.3634
million). Under the assumption that other variables remain unchanged, assuming that the interest rate changes by
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50 benchmark points, we believe that it will not have a significant impact on the total profits and shareholders'
equity.
2. Foreign exchange risk
Foreign exchange risk means a risk that the fair value or future cash flow of a financial instrument fluctuates
due to a change in the foreign exchange rate. The risk of exchange rate changes faced by the Company is mainly
related to the Company's foreign currency monetary assets and liabilities. For foreign currency assets and
liabilities, in case of short-term imbalance, the Company will buy and sell foreign currencies at the market
exchange rate when necessary to ensure that the net risk exposure is maintained at an acceptable level.
The Company's monetary assets and liabilities in foreign currencies at the end of the period are
detailed in Notes to the Financial Statements V (4) 2 to the financial statements.
XI. Disclosure of Fair Value
1. Fair value at the end of the period of assets and liabilities measured at fair value
Unit: RMB
Ending fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Sustained measurement of fair value -- -- -- --
1. Trading financial assets and other non-
current financial assets
(1) Financial assets classified as financial
assets measured at fair value through profit or 188,283,362.49 188,283,362.49
loss for the current period
Derivative financial assets 188,283,362.49 188,283,362.49
2. Receivables financing 187,298,909.35 187,298,909.35
Total assets continuously measured at fair
217,907,699.50 187,298,909.35 405,206,608.85
value
3. Trading financial liabilities 588,769,711.55 588,769,711.55
Derivative financial liabilities 588,769,711.55 588,769,711.55
Total liabilities continuously measured at fair
588,769,711.55 588,769,711.55
value
Unsustained fair value measurement -- -- -- --
2. Basis for determination of the market prices of sustained and unsustained Level 1 fair value
measurement items
It is based on the floating gain and loss amount determined by the futures and paper cargo position contract
in accordance with the fair value on the balance sheet date.
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3. Qualitative and quantitative information of valuation techniques and important parameters adopted
for sustained and unsustained level 3 fair value measurement items
Basis: the fair value is determined by using a specific valuation technique, and the important parameters
adopted include interest rates that cannot be directly observed and so on.
XII. Related Party and Related Transactions
1. The Company's parent company
Proportion of the
Proportion of the
Company's
Name of parent Place of Company's
Business nature Registered capital voting rights held
company registration shares held by the
by the parent
parent company
company
Zhejiang Rongsheng Xiaoshan, Industrial
83,466.40 61.46% 61.46%
Holding Group Co., Ltd. Zhejiang investment
Note to information about the Company's parent company
The ultimate controlling party of the Company is Li Shuirong.
Other descriptions:
Li Shuirong directly holds 6.35% equity in the Company. Zhejiang Rongsheng Holding Group Co., Ltd.
holds 61.46% of the equity of the Company, and Li Shuirong holds 63.523% of the equity of Zhejiang Rongsheng
Holding Group Co., Ltd., thus indirectly holding 39.04% of the equity of the Company, with a total of holding
45.39% of the equity of the Company.
2. Information on subsidiaries of the Company
See Note 7 for details of the Company's subsidiaries.
3. The Company's joint ventures and associated enterprises
See Note VII for details of important joint ventures or associated enterprises of the Company.
Other joint ventures and associated enterprises that form balances in related party transactions with the Company
in the current or previous period are as follows:
Name of joint venture or associated enterprise Relation with the Company
Zhejiang Provincial Petroleum Co., Ltd. Associated enterprise
ZPC-ENN (Zhoushan) Gas Co., Ltd. Associated enterprise
Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. Associated enterprise
Zhejiang Oil Products Trading Co., Ltd. Associated enterprise
Zhejiang Kunsheng Petroleum & Chemical Sales Co., Ltd. Associated enterprise
Zhejiang Zhenshi Port Service Co., Ltd. Associated enterprise
Zhejiang Derong chemicals Co. Ltd. Associated enterprise
Zhejiang Jurong Petroleum & Chemical Sales Co., Ltd. Associated enterprise
Zhoushan ZPC Zhougang Tugboat Co., Ltd. Associated enterprise
Other notes:
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[Note] The Company was deregistered on December 22, 2022.
4. Other related parties
Name of other related parties Relationship between other related parties and the Company
Li Jumei Close family member of the actual controller
Xiang Jiongjiong Director and General Manager
Sanyuan Holding Group Co., Ltd. Controlled by a family member close to the actual controller
Sanyuan Holding Group Hangzhou Thermal Power Co., Ltd. Controlled by a family member close to the actual controller
Zhejiang Saintyear Textile Co., Ltd. Controlled by a family member close to the actual controller
Zhejiang Rongtong Logistics Co., Ltd. The same ultimate actual controller
Ningbo Rongxiang Logistics Co., Ltd. The same ultimate actual controller
Thermal Power Co., Ltd. of Ningbo Economic and
The same ultimate actual controller
Technological Development Zone
Ningbo United Group Co., Ltd. The same ultimate actual controller
Suzhou Shenghui Equipment Co., Ltd. The same ultimate actual controller
Hangzhou Shengyuan Real Estate Development Co., Ltd. The same ultimate actual controller
Daishan Chenyu Real Estate Co., Ltd. The same ultimate actual controller
Rongsheng Coal Co., Ltd. The same ultimate actual controller
Rongsheng Energy Co., Ltd. The same ultimate actual controller
Ningbo Qingzhi Chemical Terminal Co., Ltd. The same ultimate actual controller
Ningbo Qijiashan Chemical Terminal Co., Ltd. The same ultimate actual controller
Ningbo Haineng Blend Oil Co., Ltd. The same ultimate actual controller
Hong Kong Yisheng Co., Ltd. Subsidiary of Hainan Yisheng Petrochemical Co., Ltd.
Hong Kong Yisheng Co., Ltd. Subsidiary of Zhejiang Yisheng Petrochemical Co., Ltd.
Ningbo Shengmao Trading Co., Ltd. Subsidiary of Hong Kong Yisheng Co., Ltd.
Zhejiang Yixin Chemical Fiber Co., Ltd. Subsidiary of Zhejiang Yisheng Petrochemical Co., Ltd.
Dongzhan Shipping Co., Ltd. Associated enterprise of Zhejiang Rongtong Logistics Co., Ltd.
Guangsha (Zhoushan) Energy Group Co., Ltd. Subsidiary of Zhejiang Provincial Petroleum Co., Ltd.
Zhejiang Petroleum Integrated Energy Sales Co., Ltd. Subsidiary of Zhejiang Provincial Petroleum Co., Ltd.
ZHEJIANG PETROLEUM TRADING (SINGAPORE) PTE.
Subsidiary of Zhejiang Provincial Petroleum Co., Ltd.
LTD.
Zhejiang Juxing Chemical Fiber Co., Ltd. [Note]
Other notes:
[Note]: The company transferred its equity in November 2021. After the equity transfer, the company no
longer holds the equity. The notes to this financial statement disclose the transaction volume with the company
from January to October.
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5. Related party transactions
(1) Related party transactions regarding purchase and sales of goods as well as provision and acceptance
of labor services
Table of the purchasing of goods and receiving of labor services
Unit: RMB
Whether it
Contents of Trading exceeds the Amount incurred
Current amount
Related party related party limit approved in the previous
incurred
transaction approved limit or not period
(Y/N)
Coal and
Zhejiang Rongsheng Holding Group Co.,
other 11,324,977,384.07 5,612,060,288.97
Ltd.
materials
Zhejiang Rongtong Logistics Co., Ltd. Freight 766,468,495.36 597,908,488.54
Ningbo Hengyi Trading Co., Ltd PTA, PX 2,124,191,035.93 954,511,160.57
Sanyuan Holding Group Hangzhou
Steam 27,723,273.38 15,539,877.08
Thermal Power Co., Ltd.
Lump sum
Ningbo Qingzhi Chemical Terminal Co.,
fee for port 74,556,771.90 41,151,609.35
Ltd.
operation
Zhejiang Petroleum Integrated Energy
Diesel 3,464,526.99 2,763,643.66
Sales Co., Ltd.
Hainan Yisheng Petrochemical Co., Ltd. PTA 113,467,387.92 104,870,784.25
Ningbo Rongxiang Logistics Co., Ltd. Freight 51,915,996.27 17,463,424.32
IPA, storage
Zhejiang Yisheng Petrochemical Co., Ltd. 39,504,938.18 513,812,540.96
fee
Coal, labor,
Rongsheng Coal Co., Ltd. 215,432,135.48 4,387,246,227.52
etc
Ningbo United Group Co., Ltd. Hotel service 171,361.38 631,433.09
Water-coal-
Thermal Power Co., Ltd. of Ningbo
slurry
Economic And Technological Development 242,734.31 8,685,172.31
processing,
Zone
electric power
Guangsha (Zhoushan) Energy Group Co., Warehousing
170,569,891.04 136,559,375.99
Ltd. service
Warehousing
Ningbo Haineng Blend Oil Co., Ltd. 31,161,452.05 30,567,005.62
service
PX, Glacial
Ningbo Shengmao Trading Co., Ltd. 730,930,813.10 120,203,284.07
acetic acid
Dongzhan Shipping Co., Ltd. Freight 22,790,577.07 16,963,568.95
Plant
Zhejiang Dingsheng Petrochemical operation
639,523,965.24 307,563,415.17
Engineering Co., Ltd. guarantee
service
Rongsheng Energy Co., Ltd. Coal 3,343,896,485.81 152,774,249.54
Processing
Zhejiang Derong Chemicals Co., Ltd. fee, cracking 724,948,545.90
C5
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Ningbo Qijiashan Chemical Terminal Warehousing
117,541.74
Co., Ltd. charges
Equipment
Suzhou Shenghui Equipment Co., Ltd. 286,522,982.00 698,575,915.01
and materials
ZHEJIANG PETROLEUM TRADING
Crude oil 1,479,504,525.34 4,305,202,596.17
(SINGAPORE) PTE. LTD.
Office
Zhejiang Oil Products Trading Co., Ltd. 366,048.00
supplies
Auxiliary
Zhejiang Juxing Chemical Fiber Co., Ltd. 18,983,447.12 1,474.31
materials
Total 22,190,948,725.84 18,025,539,125.19
Information form on goods sold/services provided
Unit: RMB
Amount incurred Amount
Related party Content of related party transaction in the current incurred in
period prior period
Zhejiang Rongsheng Holding Group Co.,
Electric charge [Note 1] [Note 1]
Ltd.
Zhejiang Rongtong Logistics Co., Ltd. PTA 1,102,927.84 1,542,714.69
Ningbo Hengyi Trading Co., Ltd PTA 446,053,097.35 82,035,398.23
Zhejiang Saintyear Textile Co., Ltd. Polyester filament 322.09 6,192.90
Zhejiang Petroleum Integrated Energy
Fuel oil, diesel, gasoline 436,779,858.10 353,568,733.99
Sales Co., Ltd.
Hainan Yisheng Petrochemical Co., Ltd. PTA, auxiliary materials and storage fees 131,781,218.71 348,605,455.15
Zhejiang Yisheng Petrochemical Co., Ltd. Xylene, PTA, PX 5,419,751,790.07 5,520,152,307.04
Zhejiang Yixin Chemical Fiber Co., Ltd. PTA 60,176.99 139,460,176.99
Industrial isopentane, industrial cracking
Zhejiang Derong Chemicals Co. Ltd. carbon 5, diesel oil, ethylene glycol, fuel 1,423,173,368.85 48,216,747.80
power, consulting services
Zhejiang Oil Products Trading Co., Ltd. Gasoline, diesel, fuel oil 287,004,973.22
Ningbo Rongxiang Logistics Co., Ltd. Diesel 1,113,649.60
Suzhou Shenghui Equipment Co., Ltd. Diesel 30,973.45
Zhejiang Dingsheng Petrochemical
Diesel 702,654.87
Engineering Co., Ltd.
Zhoushan ZPC Zhougang Tugboat Co.,
Diesel 10,193,898.11 5,218,280.88
Ltd.
ZHEJIANG PETROLEUM TRADING
Petroleum [注 3] 1,491,438,414.44
(SINGAPORE)PTE.LTD.
Zhejiang Yisheng New Materials Co., Ltd.
PX, steam, water, electricity 486,481,138.16
[Note 2]
Zhejiang Kunsheng Petroleum & Chemical
Petroleum benzene, ethylene glycol, PX [注 4] [注 4]
Sales Co., Ltd.
Zhejiang Jurong Petroleum & Chemical
Diethylene glycol [注 4] [注 4]
Sales Co., Ltd.
PTA, auxiliary materials, glycol, steam, 847,258,984.28[注
Zhejiang Juxing Chemical Fiber Co., Ltd. 153,548,429.65
electricity, hardware 5]
Total 8,718,002,920.31 8,917,278,963.14
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Note to related party transactions of goods purchase & sale and labor services rendering & receiving
[Note 1] The company has sold a total of RMB1,427,049.42 of electricity to Zhejiang Rongsheng Holding
Group Co., Ltd. this year (confirmed as zero using the net book value method), and RMB 1,105,358.53 of
electricity to Zhejiang Rongsheng Holding Group Co., Ltd. during the same period last year.
[Note 2] In July 2021, the company included Zhejiang Yisheng New Materials Co., Ltd. in the scope of
financial statement consolidation. The notes to this financial statement disclosed the transaction amount with the
company from January to June 2021 in the same period last year.
[Note 3] The company sells products on behalf of Zhejiang Petroleum Trading (Singapore) Pte. Ltd., and the
accumulated sales amount for the company this year is RMB1168.5978 million.
[Note 4] The Company sold products through related parties Zhejiang Kunsheng Petrochemical Sales Co.,
Ltd. and Zhejiang Jurong Petrochemical Sales Co., Ltd., and the accumulated transaction amount through these
companies in this year was RMB16,467.9839 million, and the accumulated transaction amount through these
companies in the same period of last year was RMB 8,567.2897.
[Note 5] The amount disclosed here is the company's sales to the company from January to October
(2) Related leasing
The Company acts as the Lessor:
Unit: RMB
Rental income Lease income
Name of lessee Type of leased asset recognized in the recognized in the
current period previous period
Hainan Yisheng Petrochemical Co., Ltd. House rental 595,085.28
Zhejiang Rongtong Logistics Co., Ltd. House rental 1,238,938.05 1,284,403.67
Zhejiang Yisheng New Materials Co., Ltd. Land leasing, etc 8,256,880.74
The Company acts as the Lessee:
Unit: RMB
Variable lease
Rental expenses for
payments not Interest expense
short-term leases and
included in the on lease Increase in right-
leases of low-value Rent paid
measurement of liabilities of-use assets
assets on a simplified
Type lease liabilities, if assumed
basis, if applicable
of applicable
Name of asset Amou Amou Amou Amou
lessor s Amou Amou Amou Amou
nt nt nt nt
lease Amount Amount nt nt nt nt
incurr incurr incurr incurr
d incurred incurred incurr incurr incurr incurr
ed in ed in ed in ed in
in the in the ed in ed in ed in ed in
the the the the
current prior the the the the
curren curren curren curren
period period prior prior prior prior
t t t t
period period period period
period period period period
Hangzhou
Shengyuan Hous
Real Estate e 3,695,254. 53,465.3
Developm leasin 32 1
ent Co., g
Ltd.
Zhejiang Hous 550,458.7 550,458.
Rongsheng e 2 72
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Holding leasin
Group Co., g
Ltd.
Zhejiang Hous 512,837.7
Yixin e 2
Chemical leasin
Fiber Co., g
Ltd.
(3) Affiliated guarantees
The Company as guarantor
Unit: RMB
If the
guarantee
Guarantee Starting date of the Ending date of the
Secured party has been
amount guarantee guarantee
performed
(Y/N)
Zhejiang Rongsheng Holding Group Co., Ltd. 2,220,410,000.00 January 12, 2022 November 20, 2023 No
Zhejiang Rongsheng Holding Group Co., Ltd. 5,249,757,000.00 January 10, 2022 December 21, 2023 No
Zhejiang Rongsheng Holding Group Co., Ltd.
1,139,003,400.00 March 31, 2021 October 25, 2023 No
[Note 1]
Zhejiang Rongsheng Holding Group Co., Ltd. 42,953,312,000.00 October 16, 2020 July 06, 2027 No
Zhejiang Rongsheng Holding Group Co., Ltd. 1,350,435,940.00 March 04, 2022 March 03, 2023 No
Sanyuan Holding Group Co., Ltd. 80,000,000.00 March 04, 2021 February 27, 2024 No
Zhejiang Rongsheng Holding Group Co., Ltd.
644,331,900.00 April 28, 2020 April 01, 2029 No
[Note 2]
Zhejiang Rongsheng Holding Group Co., Ltd.
1,937,500,000.00 May 28, 2021 June 15, 2025 No
[Note 3]
Zhejiang Rongsheng Holding Group Co., Ltd.
1,774,777,600.00 December 29, 2021 October 20, 2027 No
[Note 4]
Zhejiang Rongsheng Holding Group Co., Ltd.
271,001,400.00 June 09, 2020 June 15, 2026 No
[Note 5]
Zhejiang Rongsheng Holding Group Co., Ltd.
269,800,000.00 September 30, 2020 September 30, 2023 No
[Note 6]
Zhejiang Rongsheng Holding Group Co., Ltd.
84,287,700.00 November 16, 2021 January 24, 2025 No
[Note 7]
Zhejiang Rongsheng Holding Group Co., Ltd.
233,070,000.00 August 31, 2021 November 21, 2026 No
[Note 8]
Zhejiang Rongsheng Holding Group Co., Ltd.
1,410,000,000.00 March 02, 2022 October 12, 2025 No
[Note 1]
Zhejiang Rongsheng Holding Group Co., Ltd.
2,852,248,800.00 March 27, 2020 January 15, 2024 No
[Note 9]
Zhejiang Rongsheng Holding Group Co., Ltd.
12,500,000,000.00 November 14, 2022 October 30, 2030 No
[Note 10]
Zhejiang Rongsheng Holding Group Co., Ltd. 8,264,350,000.00 February 22, 2022 December 15, 2023 No
Zhejiang Rongsheng Holding Group Co., Ltd. 373,440,902.97 December 28, 2020 August 07, 2023 No
Zhejiang Rongsheng Holding Group Co., Ltd. 33,248,730,869.98 November 27, 2020 March 18, 2024 No
Zhejiang Rongsheng Holding Group Co., Ltd. 45,900,000.00 March 25, 2022 March 28, 2023 No
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[Note 7]
Zhejiang Rongsheng Holding Group Co., Ltd.
10,022,399.58 October 31, 2022 January 01, 2023 No
[Note 1]
Zhejiang Rongsheng Holding Group Co., Ltd.
5,466,332,067.48 October 19, 2022 June 30, 2023 No
[Note 1]
Zhejiang Rongsheng Holding Group Co., Ltd.,
3,410,000,000.00 February 28, 2019 December 08, 2024 No
the Company
Zhejiang Rongsheng Holding Group Co., Ltd.,
167,070,307.10 March 17, 2022 August 02, 2023 No
the Company
Zhejiang Rongsheng Holding Group Co., Ltd.,
31,176,060,000.00 January 20, 2021 November 15, 2032 No
the Company [Note 11]
Zhejiang Rongsheng Holding Group Co., Ltd.,
650,000,000.00 March 23, 2022 March 20, 2023 No
the Company
Zhejiang Rongsheng Holding Group Co., Ltd.,
390,296,082.00 August 16, 2022 March 10, 2023 No
the Company
Zhejiang Rongsheng Holding Group Co., Ltd.,
628,310,692.54 August 02, 2022 February 13, 2023 No
the Company
Zhejiang Rongsheng Holding Group Co., Ltd.,
14,900,729.46 June 06, 2019 January 01, 2023 No
the Company, Li Shuirong, Li Jumei [Note 12]
Zhejiang Rongsheng Holding Group Co., Ltd.,
9,808,942.64 January 03, 2019 January 01, 2023 No
the Company, Li Shuirong, Li Jumei [Note 12]
Zhejiang Rongsheng Holding Group Co., Ltd.,
202,585,786.80 March 29, 2021 July 30, 2024 No
the Company [Note 11]
Zhejiang Rongsheng Holding Group Co., Ltd.,
11,516,662.56 April 07, 2021 May 20, 2024 No
the Company [Note 11]
Zhejiang Rongsheng Holding Group Co., Ltd.,
21,855,024,300.00 July 31, 2018 July 30, 2030 No
the Company, Li Shuirong, Li Jumei [Note 12]
Zhejiang Rongsheng Holding Group Co., Ltd.,
1,115,311,044.00 August 08, 2018 July 30, 2030 No
the Company, Li Shuirong, Li Jumei [Note 12]
Description of related guarantee
[Note 1] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
60% of the guarantee amount.
[Note 2] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. The subsidiary Ningbo Niluoshan New Energy Co., Ltd. has provided mortgage
guarantee with fixed assets and intangible assets worth RMB 134.8 million.
[Note 3] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. The subsidiary Ningbo Zhongjin Petrochemical Co., Ltd. has provided a mortgage
guarantee with machinery and equipment worth RMB 3,941.0269 million.
[Note 4]: Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. The subsidiary Zhejiang Yisheng New Materials Co., Ltd. has provided a
mortgage guarantee with machinery and equipment worth RMB 4,457.253 million.
[Note 5]: Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
50% of the guarantee amount. The subsidiary Zhejiang Yisheng New Materials Co., Ltd. has provided a mortgage
guarantee with machinery and equipment worth RMB 4,457.253 million.
[Note 6] Zhejiang Rongsheng Holding Group Co., Ltd. provides joint liability guarantee for 50% of the
guarantee amount.
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[Note 7] Zhejiang Rongsheng Holding Group Co., Ltd. provides joint liability guarantee for 51% of the
guarantee amount.
[Note 8] Zhejiang Rongsheng Holding Group Co., Ltd. provides joint liability guarantee for 51% of the
guarantee amount. The subsidiary Zhejiang Yisheng New Materials Co., Ltd. has provided a mortgage guarantee
with machinery and equipment worth RMB 4,457.253 million.
[Note 9] Zhejiang Rongsheng Holding Group Co., Ltd. provides joint and several liability guarantees for 100%
of the guarantee amount. The subsidiary Zhejiang Yisheng New Materials Co., Ltd. has provided a mortgage
guarantee by machinery and equipment worth RMB 8,876.2553 million.
[Note 10]: Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees
for 100% of the guarantee amount. The subsidiary Zhejiang Petroleum & Chemical Co., Ltd. has provided a
mortgage guarantee with the completed assets of the newly added 1.4 million tons/year ethylene and downstream
chemical plant (Phase II project product structure optimization) project (including but not limited to the mortgage
guarantee provided in the form of land use right, above-ground structures and equipment of the project after the
completion acceptance of the construction project).
[Note 11] Zhejiang Rongsheng Holding Group Co., Ltd. and the Company provide joint and several liability
guarantees for 60% of the guarantee amount. The subsidiary Zhejiang Petroleum & Chemical Co., Ltd. has
provided a mortgage guarantee with the completed asset-refining and chemical integration project with an annual
output of 40 million tons (including but not limited to the mortgage guarantee provided in the form of land use
right, above-ground structures and equipment of the project after the completion acceptance of the construction
project).
[Note 12] Zhejiang Rongsheng Holding Group Co., Ltd. and the Company provide joint and several liability
guarantees for 51% of the guarantee amount. The subsidiary Zhejiang Petroleum & Chemical Co., Ltd. has
provided a mortgage guarantee with the completed asset-refining and chemical integration project with an annual
output of 40 million tons (including but not limited to the mortgage guarantee provided in the form of land use
right, above-ground structures and equipment of the project after the completion acceptance of the construction
project).
（4）Remuneration of key management personnel
Unit: RMB
Amount incurred in the previous
Item Current amount incurred
period
Remuneration of key management
15,267,702.15 15,595,277.70
personnel
(5) Other related transactions
1. Fund borrowing from/to related parties
(1)At the beginning of the period, the Company had RMB 3.6282 million payable to Zhejiang Rongsheng
Holding Group Co., Ltd.; in the current period, the Company has borrowed RMB 6,290 million from Zhejiang
Rongsheng Holding Group Co., Ltd., made RMB 86.0435 million provisions for fund possession cost, and
returned RMB 4,840.1583 million of principal and interest on a cumulative basis. As of December 31, 2022, the
amount payable by the Company is RMB 1,539.5134 million.
In the current period, the subsidiary Zhejiang Shengyuan Chemical Fiber Co., Ltd. has borrowed RMB 200
million from the controlling shareholder Zhejiang Rongsheng Holding Group Co., Ltd. and returned RMB 200
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million on a cumulative basis. As of December 31, 2022, Zhejiang Shengyuan Chemical Fiber Co., Ltd. has fully
repaid the above amount.
(2) At the beginning of the period, the entrusted loan and the related interest payable of Zhejiang Yisheng
New Materials Co., Ltd. to Zhejiang Yisheng Petrochemical Co., Ltd. were RMB 1.078 billion and RMB 1.4869
million, respectively. In the current period, RMB 1.078 billion was paid in due course, RMB 988 million of the
entrusted loan was received, RMB 51.5213 million of entrusted loan interest was accrued, and RMB 51.5743
million of entrusted loan interest was paid. As of December 31, 2022, RMB 988 million of entrusted loan and
RMB 1.4339 million of entrusted loan interest were not yet due for payment.
(3) At the beginning of the period, the amount receivables of subsidiary Zhejiang Petroleum & Chemical Co.,
Ltd. from ZPC-ENN (Zhoushan) Gas Co., Ltd. were RMB 4.8 million, with RMB 205,200 provisions for fund
possession cost, RMB 205,200 of fund possession cost collected. As of December 31, 2022, the amount
receivables of Zhejiang Petroleum & Chemical Co., Ltd. were RMB 4.8 million.
2. As of December 31, 2022, the subsidiary Zhejiang Petroleum & Chemical Co., Ltd. had made RMB
577,467,823.24 of house payments to Daishan Chenyu Real Estate Co., Ltd. on a cumulative basis.
3. The subsidiary Rongsheng Petrochemical (Singapore) Pte Ltd. had conducted paper transactions with
Hong Kong Yisheng Co., Ltd., with an investment loss of USD 25,977,112.67 realized in total in the current
period. During this period, the Company conducted paper transactions with Hong Kong Yisheng Co., Ltd., with
an investment loss of USD 25,933,169.66 realized in total in the current period.
4. As of December 31, 2022, the deposit balance of the Company and its subsidiaries in the related party
Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. was RMB 31,473,847.38, USD 17,182.90 and EUR 129.66.
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
Ending balance Beginning balance
Name Related party Bad-debt Bad-debt
Book balance Book balance
provision provision
Accounts
receivable
Zhejiang Yisheng Petrochemical Co.,
328,112,466.43 18,074,604.36 11,714,406.80 585,720.34
Ltd.
Zhejiang Kunsheng Petroleum &
299,160,177.48 14,958,008.87 65,229,440.75 3,261,472.04
Chemical Sales Co., Ltd.
Zhejiang Juxing Chemical Fiber Co.,
431,932,803.47 21,596,640.17
Ltd.
Zhejiang Derong chemicals Co. Ltd. 26,542,355.91 1,327,117.80
Subtotal 627,272,643.91 33,032,613.23 535,419,006.93 26,770,950.35
Advance
payment
Rongsheng Energy Co., Ltd. 7,496,541.17
Ningbo Shengmao Trading Co., Ltd. 52,067,253.14 20,996,219.53
Hangzhou Shengyuan Real Estate
3,063,364.94
Development Co., Ltd.
Rongsheng Coal Co., Ltd. 186,792,701.58
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Hainan Yisheng Petrochemical Co.,
330,532.00
Ltd.
Subtotal 55,130,618.08 215,615,994.28
Other
receivables
ZPC-ENN (Zhoushan) Gas Co., Ltd. 4,800,000.00 523,802.73 4,800,000.00 250,950.68
Hong Kong Yisheng Co., Ltd. 1,135,320.34
Hong Kong Yisheng Petrochemical
412,896.31
Investment Co., Ltd.
Rongsheng Energy Co., Ltd. 14,992.79 749.64
Subtotal 6,363,209.44 524,552.37 4,800,000.00 250,950.68
Dividend
Receivable
Hainan Yisheng Petrochemical Co.,
265,000,000.00
Ltd.
Ningbo Hengyi Trading Co., Ltd 169,500,000.00
Subtotal 434,500,000.00
(2) Payables
Unit: RMB
Ending book Beginning book
Project Related party
balance balance
Accounts payable
Rongsheng Petrochemical (Singapore) Pte Ltd [Note] 33,752,876,000.52 29,156,220,917.75
Zhejiang Petroleum & Chemical Co., Ltd. [Note] 2,265,876,894.64 413,293,018.86
Yisheng Dahua Petrochemical Co., Ltd. [Note] 2,053,414,700.00 1,633,392,000.00
Dalian Rongxincheng Trading Co., Ltd. [Note] 1,692,694,346.81 1,307,747,928.04
Zhejiang Yisheng New Materials Co., Ltd. [Note] 1,597,577,255.10 443,721,000.00
Ningbo Zhongjin Petrochemical Co., Ltd. [Note] 538,000,000.00 450,000,000.00
The Company [Note] 230,000,000.00 131,640,000.00
Zhejiang Rongtong Chemical Fiber New Material Co.,
21,596,060.00 1,273,000,000.00
Ltd. [Note]
Zhejiang Shengyuan Chemical Fiber Co., Ltd. [Note] 40,288,400.00
Dalian Yisheng New Materials Co., Ltd. [Note] 19,500,000.00
Zhejiang Rongtong Logistics Co., Ltd. 294,356,317.53 86,513,249.75
Zhejiang Derong Chemicals Co. Ltd. 175,832,956.88
Suzhou Shenghui Equipment Co., Ltd. 35,726,908.47
Ningbo Qingzhi Chemical Terminal Co., Ltd. 11,606,791.20 303,286.73
Ningbo Rongxiang Logistics Co., Ltd. 7,324,253.61 494,329.36
Daishan Chenyu Real Estate Co., Ltd. 5,541,000.66
Electric Power Branch, Thermal Power Co., Ltd. of
Ningbo Economic and Technological Development 12,062.48
Zone
Ningbo United Group Co., Ltd. 8,058.00 13,875.00
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Zhejiang Petroleum Trading (Singapore) Pte. Ltd. 1,016,415,181.95
Guangsha (Zhoushan) Energy Group Co., Ltd. 36,577,868.52
Dongzhan Shipping Co., Ltd. 4,563,302.75 1,258,096.99
Zhejiang Oil Products Trading Co., Ltd. 413,634.24
Subtotal 42,746,795,308.65 35,951,004,387.19
Notes payable
Zhejiang Yisheng Petrochemical Co., Ltd. 129,500,000.00
Ningbo Shengmao Trading Co., Ltd. 75,000,000.00
Suzhou Shenghui Equipment Co., Ltd. 6,351,362.24 5,835,878.48
Subtotal 6,351,362.24 210,335,878.48
Contract liabilities and
other current liabilities
Zhejiang Petroleum Integrated Energy Sales Co., Ltd. 1,061,404.81 74,434,586.53
Zhejiang Jurong Petroleum & Chemical Sales Co., Ltd. 1,825,881.25 1,476,218.85
Zhoushan ZPC Zhougang Tugboat Co., Ltd. 1,639,886.33 53,342.61
Zhejiang Saintyear Textile Co., Ltd. 45,602.11 46,292.23
Zhejiang Dingsheng Petrochemical Engineering Co.,
700.00
Ltd.
Subtotal 4,572,774.50 76,011,140.22
Other payables
Zhejiang Rongsheng Holding Group Co., Ltd. 1,539,513,447.19 3,628,215.25
Zhejiang Yisheng Petrochemical Co., Ltd. 989,433,904.99 1,079,486,911.13
Zhejiang Yixin Chemical Fiber Co., Ltd. 1,015,495.53
Hong Kong Yisheng Co., Ltd. 7,883,170.51
Hong Kong Yisheng Co., Ltd. 6,069,283.86
Zhejiang Rongtong Logistics Co., Ltd. 719,750.00
Zhejiang Dingsheng Petrochemical Engineering Co.,
660,000.00
Ltd.
Suzhou Shenghui Equipment Co., Ltd. 500,000.00
Subtotal 2,529,962,847.71 1,098,947,330.75
[Note]: They are the letters of credit issued by the Company and its subsidiaries, which were discounted after being received by
Rongsheng Petrochemical (Singapore) Pte Ltd, Zhejiang Rongtong Chemical Fiber New Material Co., Ltd., Yisheng Dahua
Petrochemical Co., Ltd., Dalian Rongxincheng Trading Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd., the Company, Zhejiang
Yisheng New Materials Co., Ltd. and Ningbo Zhongjin Petrochemical Co., Ltd.
XIII. Commitments and Contingencies
1. Major commitments
Significant commitments at the balance sheet date
(1) Major commitments
1. As of December 31, 2022, the number of letters of credit issued but not withdrawn in the financial
institutions, including Bank of Communications Hangzhou Xiaoshan Sub-Branch by the Company and its holding
subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Zhejiang
201 /215
Full text of 2022 Annual Report
Petroleum & Chemical Co., Ltd., Zhejiang Yongsheng technology Co. Ltd., Rongsheng Petrochemical (Singapore)
Pte Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., Zhejiang Yisheng New Materials Co., Ltd. and Zhejiang
Yongsheng technology Co. Ltd. were RMB 9,808.3337 million, USD 7,950.3677 million, EUR 206.858 million,
GBP 629,000.
2. As of December 31, 2022, the letters of guarantee of the Company and its subsidiaries not yet due are as
follows:
(Unit: RMB 10,000)
Issuing bank Name of issuing company Beneficiary Guarantee amount
Ningbo Zhenhai Sub-branch of Zhejiang Petroleum & Chemical Hangzhou Customs of the
CNY29,970.00
Guangfa Bank Ningbo Co., Ltd. Co., Ltd. People's Republic of China
Ningbo Zhenhai Sub-branch of Zhejiang Petroleum & Chemical Zhoushan Customs of the
CNY471.00
Guangfa Bank Ningbo Co., Ltd. Co., Ltd. People's Republic of China
Industrial and Commercial Bank of Zhejiang Petroleum & Chemical Hangzhou Customs of the
CNY100,000.00
China Limited, Zhoushan Branch Co., Ltd. People's Republic of China
Industrial and Commercial Bank of Zhejiang Petroleum & Chemical Zhoushan Customs of the
CNY182.90
China Limited, Zhoushan Branch Co., Ltd. People's Republic of China
Hangzhou Xiaoshan Sub-branch of Zhejiang Petroleum & Chemical Hangzhou Customs of the
CNY35,280.50
Bank of Communications Co., Ltd. Co., Ltd. People's Republic of China
Hangzhou Xiaoshan Sub-branch of Zhejiang Petroleum & Chemical Zhoushan Customs of the
CNY2,880.55
Bank of Communications Co., Ltd. Co., Ltd. People's Republic of China
Zhoushan Branch of Bank of Zhejiang Petroleum & Chemical Hangzhou Customs of the
CNY93,480.00
Communications Co., Ltd. Co., Ltd. People's Republic of China
Zhoushan Branch of Bank of Zhejiang Petroleum & Chemical Zhoushan Customs of the
CNY16.00
Communications Co., Ltd. Co., Ltd. People's Republic of China
Shanghai Pudong Development Bank Zhejiang Petroleum & Chemical Standard Chartered (China)
CNY42,000.00
Co., Ltd. Zhoushan Branch Co., Ltd. Co., Ltd., Hangzhou Branch
Shanghai Pudong Development Bank Zhejiang Petroleum & Chemical Hangzhou Customs of the
CNY153,500.00
Co., Ltd. Zhoushan Branch Co., Ltd. People's Republic of China
China Construction Bank Corporation Zhejiang Petroleum & Chemical Guiyan Resources (Yimen)
CNY9,226.31
Zhoushan Branch Co., Ltd. Co., Ltd
China Construction Bank Corporation Zhejiang Petroleum & Chemical Hangzhou Customs of the
CNY21,400.00
Zhoushan Branch Co., Ltd. People's Republic of China
China Construction Bank Corporation Zhejiang Petroleum & Chemical Zhoushan Customs of the
CNY24.00
Zhoushan Branch Co., Ltd. People's Republic of China
Agricultural Bank of China Limited Zhejiang Petroleum & Chemical Hangzhou Customs of the
CNY80,440.00
Xiaoshan Branch Co., Ltd. People's Republic of China
Huaxia Bank Co., Ltd., Zhoushan Zhejiang Petroleum & Chemical Hangzhou Customs of the
CNY46,590.00
Branch Co., Ltd. People's Republic of China
Bank of China Co., Ltd., Zhoushan Zhejiang Petroleum & Chemical Hangzhou Customs of the
CNY93,770.00
Branch Co., Ltd. People's Republic of China
Bank of China Co., Ltd., Zhoushan Zhejiang Petroleum & Chemical China CNTC International
CNY20.00
Branch Co., Ltd. Tendering Co., Ltd.
Zhejiang Petroleum & Chemical Hangzhou Customs of the
Ping An Bank Co., Ltd. Ningbo Branch CNY15,180.00
Co., Ltd. People's Republic of China
China Construction Bank Corporation Yisheng Dahua Petrochemical Zhengzhou Commodity
CNY22,680.00
Dalian Ganjingzi Sub-branch Co., Ltd. Exchange
Dalian Jinpu New Area Branch of Yisheng Dahua Petrochemical Zhengzhou Commodity
CNY31,080.00
Bank of China Limited Co., Ltd. Exchange
Dalian Jinpu New Area Branch of Yisheng Dahua Petrochemical Dalian Customs of the CNY10,000.00
202 /215
Full text of 2022 Annual Report
Bank of China Limited Co., Ltd. People's Republic of China
XIV. Events after the Balance Sheet Date
1. Description of other events after the balance sheet date
(I) Significant non-adjustment events
Based on The Proposal on Introducing Overseas Strategic Investors and Signing the "Strategic Cooperation
Agreement" and the Package Agreement and Related Party Transactions for Crude Oil Procurement under It,
which was reviewed and approved by the sixth meeting of the sixth Board of Directors held by the Company on
March 27, 2023, according to the "Share Purchase and Sale Agreement" signed between Zhejiang Rongsheng
Holding Group Co., Ltd., controlling shareholder of the Company, and Aramco Overseas Company B.V.
(hereinafter referred to as AOC), a wholly-owned subsidiary of Saudi Arabian Oil Company (hereinafter referred
to as Saudi Aramco), Zhejiang Rongsheng Holding Group Co., Ltd. plans to transfer 1,012,552,501 shares of the
Company's shares to AOC, with a transfer price of RMB 24.30 per share. AOC will hold more than 5% of the
shares of the Company within the next twelve months under the Share Sale and Purchase Agreement.
(II) Profit distribution after the balance sheet date
According to the profit distribution plan for 2022 approved at the 7th meeting of the seventh Board of Directors
on April 18, 2023, the Company plans to distribute RMB 1.5 per 10 shares in cash (tax-inclusive) to all
shareholders. Based on 9,842,382,348 shares after deducting 283,142,652 shares that have been repurchased
accumulatively as of the disclosure date of this announcement, the total cash dividend to be distributed is RMB
Profit or 1,476,357,352 (tax included), and the remaining undistributed profits are carried forward to the next year. In this
dividend to be year, no bonus shares and share capital increased by accumulation fund are made by the Company. The shares
distributed held in the Company’s dedicated securities repurchase account will not be included in this round of profit
distribution. In the case that before the registration date of equity distribution, the total share capital of the
Company has changed due to the conversion of convertible bonds into shares, share repurchase, cancellation of
share repurchase granted by equity incentive, reservation of partial share grant registration and others, the total
amount of distribution is adjusted according to the principle of distribution proportion unchanged.
XV. Other Important Matters
1. Segment information
(1) Determination basis and accounting policies for reporting segments
The operating income and operating costs of the Company classified by product are detailed in Note V (II) 1
to these financial statements.
Factors to be considered in determining the segment for the report
The Company establishes its reporting segment based on the internal organizational structure, management
requirements and internal reporting system, and determines reporting segments on the basis of the industry
segment. The business performance of the petrochemical production business, polyester fiber manufacturing
business, and wholesale and retail business have been evaluated, respectively.
(2) Financial information of the reporting segments
Unit: RMB
Oil refining Chemical Polyester fiber
Inter-segment
Item production production manufacturing Trade business Total
offset
business business business
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Full text of 2022 Annual Report
Revenue from 131,744,159,47 191,375,068,53 14,691,016,646. 186,097,827,95 287,950,14
-235,957,922,624.15
main businesses 4.05 4.91 97 1.58 9,983.36
Main business 112,880,281,11 180,428,615,85 14,218,451,670. 185,833,541,73 256,926,39
-236,434,499,071.92
costs 9.06 3.69 04 4.61 1,305.48
54,195,737,738. 17,037,466,891 362,587,41
Total Assets 342,140,412,361.70 -50,786,200,303.65
36 .27 6,687.68
31,212,874,673. 14,219,815,632 265,421,63
Total liabilities 233,824,457,079.45 -13,835,513,476.48
32 .09 3,908.38
2. Other important transactions and events impacting the investor's decision-making
None
3. Miscellaneous
(1) Lease
1. The Company as a lessee
(1) Information related to the right-of-use asset is detailed in note V (I) 13 of these financial statements.
(2) Accounting policies of short-term leases and low-value asset leases of the Company are detailed in note
III (XXVI) of these financial statements. The amounts of short-term lease expense and low-value asset lease
expense included in the current gain and loss are as follows:
Item Amount in the current period
Short-term lease expense 9,678,895.61
Lease expense of low value assets (exclude short-term lease)
Total 9,678,895.61
(3) Current gain and loss and cash flow related to leasing
Item Amount in the current period
Interest expense on lease liabilities 10,076,829.05
Total cash outflow related to leasing 45,612,853.69
(4) The maturity analysis of lease liabilities and the corresponding liquidity risk management are detailed in
Note VIII (II) of these financial statements.
2. The Company as lessor
(1) Operating lease
1) Rental income
Item Amount in the current period
Rental income 2,687,314.17
Including: income related to variable lease payments not included in the
2,687,314.17
measurement of lease receipts.
2) Assets under operating lease
Item Amount in the current period
Investment property 10,667,020.60
Subtotal 10,667,020.60
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3) According to the lease contract signed with the lessee, the undiscounted lease receipts will be received for
the irrevocable lease in the future.
Residual maturity Ending balance
Within 1 year 1,284,403.67
1-2 year(s)
Total 1,284,403.67
(2) Other important transactions and events impacting the investor's decision-making
Given the practical requirements for business development, the Company and its subsidiaries are mainly
faced with the price fluctuation risk for hedging their main raw materials and products, and in the current period,
the Company has carried out futures investment business through the futures market. As of December 31, 2022,
the Company and its subsidiaries had deposited RMB 272,529,752.95 of futures margin for holding futures
contracts.
XVI. Notes to Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: RMB
Ending balance Beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Category Book Book
Percentag Percentag
Propo value Propo value
Amount Amount e of Amount Amount e of
rtion rtion
provision provision
Accounts
receivable
with
provision for
74,726,78 3,932,59 70,794,1 214,813, 10,766,5 204,047
bad debt 100% 5.26% 100 % 5.01%
9.47 5.52 93.95 896.48 78.74 ,317.74
reserves
based on
aging
portfolio
74,726,78 3,932,59 70,794,1 214,813, 10,766,5 204,047
Total 100% 5.26% 100% 5.01%
9.47 5.52 93.95 896.48 78.74 ,317.74
Provision for bad debts by portfolio: 3,932,595.52
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Accrual proportion
Aging portfolio 74,726,789.47 3,932,595.52 5.26%
Total 74,726,789.47 3,932,595.52
For provision for bad debt reserves of the accounts receivable by the general model of the expected credit loss,
relevant information of bad debt reserves is disclosed based on the disclosure method of other receivables:
Disclose according to aging
Unit: RMB
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Full text of 2022 Annual Report
Aging Book balance
Within 1 year (inclusive of 1 year) 71,262,020.85
1-2 years 3,349,680.56
2-3 years 115,088.06
Total 74,726,789.47
(2) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RMB
The amount of change in the current period
Beginning Ending
Category Recovered or
balance Provisions Write-off Others balance
returned
Bad-debt provision by
individual item
Provision made for bad
debt reserves based on 10,766,578.74 -6,833,983.22 3,932,595.52
aging portfolio
Total 10,766,578.74 -6,833,983.22 3,932,595.52
(3) Accounts receivable of top 5 ending balances collected by debtors
Unit: RMB
Closing balance of Proportion in total ending balance Ending balance of provision
Company name
accounts receivable of accounts receivable for bad debts
Zhejiang Juxing Chemical Fiber
50,301,968.40 67.31% 2,515,098.42
Co., Ltd.
Liyang Dongfa Textile Co., Ltd. 2,357,529.33 3.15% 117,876.47
Zhejiang Xinminglong Warp
2,188,119.87 2.93% 109,405.99
Knitting Co., Ltd.
Anhui Huangshan Lianqiang
989,545.77 1.32% 49,477.29
Textile Co., Ltd.
PPH LEGS Sp.Z0.o. 946,366.21 1.27% 47,318.31
Total 56,783,529.58 75.98% 2,839,176.48
2. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Dividends receivable 300,000,000.00 997,000,000.00
Other receivables 374,169,712.95 373,820,726.54
Total 674,169,712.95 1,370,820,726.54
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(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Project (or investee) Ending balance Beginning balance
Hong Kong Sheng Hui Co., Ltd. 300,000,000.00 300,000,000.00
Zhejiang Yongsheng technology Co. Ltd. 192,000,000.00
Ningbo Hengyi Trading Co., Ltd 169,500,000.00
Dalian Yisheng Investment Co., Ltd 185,500,000.00
Zhejiang Shengyuan Chemical Fiber Co.,
150,000,000.00
Ltd.
Total 300,000,000.00 997,000,000.00
2) Significant dividends receivable aged over 1 year
Unit: RMB
Reason for the
Whether impairment occurs
Project (or investee) Ending balance Aging unrecovered
and its judgment basis
amount
Subsidiaries and associated
Hong Kong Sheng Hui enterprises operate normally,
300,000,000.00 Above 3 years Unrecovered
Co., Ltd. and no risk is expected in the
recovery of funds.
Total 300,000,000.00
3) Bad debt provision
□ Applicable √ Not applicable
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Nature of account Ending book balance Beginning book balance
Portfolio of transactions between related
373,727,461.92 373,500,000.00
parties within the consolidation scope
Reserve fund receivables and other
2,050,211.43 1,923,419.26
portfolios
Deposit receivables portfolio 600,000.00 600,000.00
Total 376,377,673.35 376,023,419.26
2) Bad debt provision
Unit: RMB
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Full text of 2022 Annual Report
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Bad-debt provision Expected credit Total
over the entire for the entire duration
loss in the next
duration (without (credit impairment
12 months
credit impairment) has occurred)
Balance as of January 1, 2022 14,292.12 5,464.04 2,182,936.56 2,202,692.72
The balance as of January 1,
2022 in the current period
--Transferred to Stage II -664.04 664.04
Provision in the current period 8,739.61 -4,800.00 1,328.07 5,267.68
Balance as of December 31,
23,031.73 0.00 2,184,928.67 2,207,960.40
2022
Book balance changes with significant changes in loss provisions in the current period
□ Applicable √ Not applicable
Disclose according to aging
Unit: RMB
Aging Book balance
Within 1 year (inclusive of 1 year) 688,096.43
1-2 years 373,500,000.00
2-3 years 6,640.36
Above 3 years 2,182,936.56
3-4 years 2,182,936.56
Total 376,377,673.35
3) Top five debtors with the biggest ending balances of other accounts receivable
Unit: RMB
Proportion in a Bad-debt
Ending total ending provision
Company name Nature of the payment Aging
balance balance of other
receivables Ending
balance
Dalian Yisheng Investment Co., Current accounts
373,500,000.00 1-2 years 99.24%
Ltd portfolio
Hangzhou Longda Differential Reserve fund Above 3
1,287,371.67 0.34% 1,287,371.67
Polyester Co. Ltd. receivables and others years
Zhengzhou Commodity Deposit receivables Above 3
600,000.00 0.16% 600,000.00
Exchange portfolio years
Zhejiang Petroleum & Chemical Current accounts Within 1
227,461.92 0.06%
Co., Ltd. portfolio year
Reserve fund
Above 3
Individual A receivables and other 121,000.00 0.03% 121,000.00
years
portfolios
Total 375,735,833.59 99.83% 2,008,371.67
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Full text of 2022 Annual Report
3. Long-term equity investment
Unit: RMB
Ending balance Beginning balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Investment in
39,462,393,720.56 39,462,393,720.56 36,481,403,720.56 36,481,403,720.56
subsidiaries
Investment in
joint ventures
and 3,742,216,481.79 3,742,216,481.79 3,555,058,486.43 3,555,058,486.43
associated
enterprises
Total 43,204,610,202.35 43,204,610,202.35 40,036,462,206.99 40,036,462,206.99
(1) Investment in subsidiaries
Unit: RMB
Increase and decrease in the Ending
Beginning current period balance of
Ending balance
Investee balance provision
Additional Reduced (book value) for
(book value) investment investment impairment
Zhejiang Petroleum & Chemical Co.,
25,907,242,115.34 2,550,000,000.00 28,457,242,115.34
Ltd.
Ningbo Zhongjin Petrochemical Co.,
5,990,201,140.04 5,990,201,140.04
Ltd.
Zhejiang Shengyuan Chemical Fiber
2,030,140,000.00 2,030,140,000.00
Co., Ltd.
Dalian Yisheng Investment Co., Ltd 1,468,204,457.48 1,468,204,457.48
Rongsheng Petrochemical
620,889,560.00 620,889,560.00
(Singapore) Pte. Ltd.
Zhejiang Yongsheng Technology Co.
198,306,537.70 198,306,537.70
Ltd.
Hong Kong Sheng Hui Co., Ltd. 141,419,910.00 141,419,910.00
Rongsheng International Trading
100,000,000.00 100,000,000.00
Co., Ltd.
Rongxiang Chemical Fiber Co., Ltd. 3,000,000.00 3,000,000.00
Hainan Rongsheng International
1,000,000.00 1,000,000.00
Trade Co., Ltd.
Rongsheng Chemical (Shanghai)
20,000,000.00 20,000,000.00 40,000,000.00
Co., Ltd.
Zhejiang Rongyi Trading Co., Ltd. 1,000,000.00 1,000,000.00
Rongsheng New Material
130,000,000.00 130,000,000.00
(Zhoushan) Co., Ltd.
Rongsheng New Material (Taizhou)
281,990,000.00 281,990,000.00
Co., Ltd.
Total 36,481,403,720.56 2,981,990,000.00 1,000,000.00 39,462,393,720.56
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(2) Investment in joint ventures and associated companies
Unit: RMB
Increase and decrease in the current period Endin
Ad g
Re Investment balan
Beginning diti Other Prov Ending
du gains or Declared O ce of
balance on compreh Other ision balance
Investor ced losses distributio t provis
(book al ensive equity for (book
inv recognized n of cash h ion
value) inv income chang imp value)
est under the dividends e for
est adjustm es airm
me equity or profits rs impai
me ents ent
nt method rment
nt
I. Joint ventures
II. Associated enterprise
Zhejiang
- -
Yisheng 1,508,286,7 1,476,728,2
27,630,362. 3,928,16
Petrochemic 37.77 06.10
49 9.18
al Co., Ltd.
Zhejiang
Xiaoshan
-
Rural 1,822,497,3 270,981,63 256,55 39,685,918. 2,006,079,8
47,969,7
Commercial 60.74 7.54 2.96 80 40.15
92.29
Bank Co.,
Ltd.
Ningbo
Hengyi 193,629,42 27,814,486. 10,289,3 231,733,25
Trading Co., 0.45 29 45.70 2.44
Ltd
Zhejiang
Kunsheng
-
Petroleum & 16,211,405. 13,221,013.
2,990,391.4
Chemical 03 56
7
Sales Co.,
Ltd.
Zhejiang
Jurong
Petroleum & 14,433,562. 14,454,169.
20,607.10
Chemical 44 54
Sales Co.,
Ltd.
-
3,555,058,4 268,195,97 256,55 39,685,918. 3,742,216,4
Subtotal 41,608,6
86.43 6.97 2.96 80 81.79
15.77
-
3,555,058,4 268,195,97 256,55 39,685,918. 3,742,216,4
Total 41,608,6
86.43 6.97 2.96 80 81.79
15.77
4. Operating income and operating cost
(1) Details
Unit: RMB
Current amount incurred Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary business 3,854,072,437.22 3,945,950,073.69 3,785,809,389.45 3,494,459,580.75
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Other services 52,594,679.36 76,555,884.57 54,929,107.25 54,862,711.85
Total 3,906,667,116.58 4,022,505,958.26 3,840,738,496.70 3,549,322,292.60
Including: income from
3,905,382,712.91 3,840,738,496.70
contracts with customers
(2) Breakdown of revenue generated by contracts with customers by major categories
1) Breakdown of income by commodity type
Current amount incurred Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Polyester
chemical fiber 3,854,072,437.22 3,945,950,073.69 3,785,809,389.45 3,494,459,580.75
film
Trade and others 52,594,679.36 76,555,884.57 54,929,107.25 54,862,711.85
Total 3,906,667,116.58 4,022,505,958.26 3,840,738,496.70 3,549,322,292.60
2) Breakdown of income by the time of commodity transfer
Item Amount in the current period Amount in the previous period
Revenue recognized at a certain point of time 3,905,382,712.91 3,839,454,093.03
Revenue recognized in a period of time 1,284,403.67 1,284,403.67
Subtotal 3,906,667,116.58 3,840,738,496.70
(3) The revenue recognized in the current period included in the opening book value of contract liabilities is
RMB 219,513,031.33.
5. Investment income
Unit: RMB
Item Amount incurred in the current period Amount incurred in the prior period
Income from long-term equity investment
2,550,000,000.00 2,138,750,000.00
under the cost method
Income from long-term equity
investments accounted for using the 268,195,976.97 236,916,416.17
equity method
Investment income from the disposal of
-81,956,998.23 -103,614,559.59
financial instruments
Including: Derivative financial 227,990.03 12,503,204.81
instruments
Receivables financing -82,184,988.26 -116,117,764.40
Interest income from the inter-bank loan
15,829,166.67
of related party
Investment income from the disposal of
61,902.58 8,028,601.65
long-term equity investment
Total 2,736,300,881.32 2,295,909,624.90
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Full text of 2022 Annual Report
XVII. Supplementary Information
1. Breakdown of non-recurring gains and losses in the current period
Unit: RMB
Item Amount Remarks
Gain or loss from disposal of non-current assets 14,208,115.78
Tax refund or reduction and exemption upon ultra vires approval or without official approval
documents
Government grants recognized in current gain and loss (excluding grants entitled to in quota or
ration according to certain criteria under national policies and which are closely relevant to the 2,359,477,514.76
Company's normal business operations)
Fund possession cost included in current gain and loss charged to non-financial enterprises 205,188.67
Except for effective hedging business related to the normal business operations of the Company,
changes in gains and losses of fair value arising from trading financial assets, trading financial
292,348,639.74
liabilities, investment income obtained from disposal of trading financial assets, trading financial
liabilities and available-for-sale financial assets
Other non-operating revenues and expenditures except for the aforementioned items -9,253,736.65
Other profit/loss items falling within the definition of non-recurring gain or loss 2,748,797.01
Less: Affected amount of income tax 371,798,967.48
Affected amount of minority equity 959,386,400.59
Total 1,328,549,151.24 --
Other gain/loss items falling within the definition of non-recurring gain or loss:
□ Applicable √ Not applicable
No other gain/loss items falling within the definition of non-recurring gain or loss.
Explanation of the circumstances in which the non-recurring gain and loss items listed in the Explanatory
Announcement No. 1 on Information Disclosure of Companies Publicly Issuing Securities-Non-recurring Gains
and Losses are defined as recurring gains and losses.
□ Applicable √ Not applicable
2. Return on equity and earnings per share (EPS)
Earnings per share (EPS)
Weighted average
Profit within the reporting period Basic earnings per share Diluted earnings per share
return on net assets
(RMB per share) (RMB per share)
Net profit attributable to ordinary
6.87% 0.33 0.33
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after 4.14% 0.20 0.20
deducting non-recurring gains and losses
212 /215
Full text of 2022 Annual Report
4. Miscellaneous
1. Calculation process of weighted average return on net assets
Amount in the
Item S/N
current period
Net profit attributable to ordinary shareholders of the Company A 3,340,162,428.95
Non-recurring gains and losses B 1,328,549,151.24
Net profit attributable to ordinary shareholders of the Company after
C=A-B 2,011,613,277.71
deducting non-recurring gains and losses
Net assets at the beginning of the period attributable to ordinary
D 49,251,305,948.40
shareholders of the Company
Newly added net assets attributable to ordinary shareholders of the
E
Company resulting from new shares issued or debt-to-equity swap
Number of months from the following month of increased net assets to
F
the end of the reporting period
Decreased net assets attributable to ordinary shareholders of the Company
G1 1,507,313,454.95
resulting from the repurchase or cash dividends
Number of months from the following month of decreased net assets to
H1 7
the end of the reporting period
Net profit attributable to ordinary shareholders of the Company G2 1,106,064,809.42
Non-recurring gains and losses H2 7
Decreased net assets attributable to ordinary shareholders of the Company
G3 884,140,034.89
resulting from the repurchase or cash dividends
Number of months from the following month of decreased net assets to
H3 5
the end of the reporting period
Decreased net assets attributable to ordinary shareholders of the Company
G4 543,725,371.64
resulting from the repurchase or cash dividends
Number of months from the following month of decreased net assets to
H4 4
the end of the reporting period
Decreased net assets attributable to ordinary shareholders of the Company
G5 922,651,862.05
resulting from the repurchase or cash dividends
Number of months from the following month of decreased net assets to
H5 3
the end of the reporting period
Decreased net assets attributable to ordinary shareholders of the Company
G6 423,673,429.39
resulting from the repurchase or cash dividends
Number of months from the following month of decreased net assets to
H6 2
the end of the reporting period
Decreased net assets attributable to ordinary shareholders of the Company
G7 97,946,857.26
resulting from the repurchase or cash dividends
Number of months from the following month of decreased net assets to
H7 1
the end of the reporting period
Translation reserve I1 173,015,555.89
Increased or decreased number of months from the
following month of increased net assets to the end of the J1 6
reporting period
Others
Equity method and other equity changes I2 -18,585,212.53
Increased or decreased number of months from the
following month of increased net assets to the end of the J2 6
reporting period
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Other equity premiums I3
Increased or decreased number of months from the
following month of increased net assets to the end of the J3
reporting period
Number of months of the reporting period K 12
Weighted average net assets L=D+A/2+E×F/K-G×H/K±I×J/K 48,615,060,766.74
Weighted average return on net assets M=A/L 6.87%
Weighted average return on net assets after deducting non-recurring gains
N=C/L 4.14%
and losses
2. Calculation process of basic earnings per share and diluted earnings per share
(1) Calculation process of basic earnings per share
Item S/N Amount in the current period
Net profit attributable to common shareholders of the Company A 3,340,162,428.95
Non-recurring gains and losses B 1,328,549,151.24
Net profit attributable to ordinary shareholders of the Company after
C=A-B 2,011,613,277.71
deducting non-recurring gains and losses
Total shares at the beginning of the period D 10,125,525,000.00
Increase in the number of shares due to the share capital transferred
E
from the capital reserve or dividend distribution
Increase in the number of shares due to new shares issued or debt-to-
F
equity swap
Number of months from the following month of increase in the
G
number of shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H1 76,768,634.00
Number of months from the following month of increase in the
I1 7
number of shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H2 58,728,412.00
Number of months from the following month of increase in the
I2 5
number of shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H3 37,183,515.00
Number of months from the following month of increase in the
I3 4
number of shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H4 64,188,391.00
Number of months from the following month of increase in the
I4 3
number of shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H5 37,637,214.00
Number of months from the following month of increase in the
I5 2
number of shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H6 8,636,486.00
Number of months from the following month of increase in the
I6 1
number of shares to the end of the reporting period
Number of shares reduced during the reporting period J
Number of months in the reporting period K 12
Weighted average number of outstanding ordinary shares L=D+E+F×G/K-H×I/K-J 10,020,838,946.25
Basic earnings per share M=A/L 0.33
214 /215
Full text of 2022 Annual Report
Basic earnings per share after deducting non-recurring gains and
N=C/L 0.20
losses
(2) Calculation process of diluted earnings per share
The calculation process of diluted earnings per share is the same as that of basic earnings per share
Rongsheng Petrochemical Co., Ltd.
Chairman: Li Shuirong
April 2023
215 /215
