Full Text of 2023 Annual Report
Stock Code:002493 Rongsheng Petrochemical Co., Ltd.
2023 Annual Report
April 2024
Full Text of 2023 Annual Report
Forging Ahead with Confidence and Zeal to a Promising Future
——A letter to investors
Dear investors,
Nature thrives and a thousand ships set sail on new voyages. In the splendid days of April,
our annual report arrives, as promised.
Investors are the cornerstone of the market, and listed companies form its foundation. Our
annual report presents a pivotal opportunity for meaningful communication between us and our
investors. As a public company, we understand the paramount importance of earning the trust and
support of our investors for our sustained, long-term growth. Throughout the past year, we have
proactively navigated a complex market landscape, bolstered our internal management, and
strengthened our core competitive edge. As we expand our global presence, we remain steadfast
in our commitment to rewarding our shareholders, ensuring that every investor shares the benefits
of our growth. Moving forward, we are resolute in our commitment to integrity and excellence as
we pursue our vision of becoming a century-old, trillion-scale enterprise, continually delivering
returns to our investors with unwavering dedication.
What may seem ordinary is often extraordinary; what appears simple is frequently
fraught with challenges. The year 2023 marked the commencement of fully embodying the spirit
of the 20th National Congress of the Communist Party of China and served as a pivotal year for
the implementation of the 14th Five-Year Plan, bridging past initiatives with future aspirations.
During this year, the global economy continued its sluggish recovery, grappling with mounting
complexity, severity, and uncertainty in the external landscape. Domestically, we faced a shortfall
in effective demand. Within the petrochemical industry, including our company, Rongsheng
Petrochemical, we faced considerable pressures such as shrinking profit margins and subdued
consumer demand. Despite these obstacles, Chinese petrochemical companies demonstrated
remarkable resilience. By leveraging China's extensive industrial chain and vast market scale, we
navigated external pressures and internal challenges. Our industry is now on the path to recovery,
with both production and supply steadily improving. As market demand gradually rebounds, we
are witnessing the restoration of corporate profitability.
Calmly navigating through tempests, advancing undeterred by the storm. This year, with
Rongsheng Petrochemical Co., Ltd. Full Text of 2023 Annual Report
the united efforts of all our employees, we have firmly maintained stable enterprise operations,
meticulously cultivated our “field of responsibility” in safety production, and forged our “steel
spine” for high-quality development. In 2023, the Company realized operating revenues of
325.112 billion yuan, an increase of 12.46%; year-on-year; as of the end of the year, our total
assets reached 374.918 billion yuan, up 3.40% from the beginning of the year. As a leading
private refining enterprise in China, we have continued to enhance our reputation and global
influence throughout 2023. We are proud to have been recognized with several prestigious
accolades, including ranking 7th in the Brand Finance 2023 Global Chemical Industry's Most
Valuable Brands , 11th among the Global Top 100 Chemical Companies, 16th in C&EN's Global
Top 50 Chemical Firms , and 15th in the Global Chemical Companies Billion Dollar Club.
Additionally, we are committed to innovative practices in corporate governance and social
responsibility. Our efforts have been acknowledged through achievements such as the 2023 Best
Practice Case in Board Governance among Listed Companies, 2023 China's Best ESG Practices
among Listed Companies, and the 1st China Reform Cup ESG Golden Bull Award for the Top 50
Companies Excelling in Carbon Neutrality.
Joining forces for collaborative success and mutual benefits. This year, Rongsheng
Petrochemical formally established a strategic partnership with Aramco . In a notable transaction,
Aramco Overseas Company B.V. (“AOC”), a wholly-owned subsidiary of Aramco, acquired a 10%
plus one share in Rongsheng Petrochemical for 24.6 billion yuan, making it the second-largest
shareholder. Meanwhile, Rongsheng Petrochemical and its subsidiary entered into a
comprehensive set of agreements with Aramco and its affiliate. This collaboration has garnered
considerable attention in China’s capital markets and the global petrochemical industry. It plays a
crucial role in enhancing our crude oil security capabilities, expanding overseas sales channels,
optimizing capital utilization efficiency, and realizing our strategic objectives. This partnership
represents a significant milestone in our international cooperation efforts and marks the beginning
of our internationalization journey. Currently, the alignment between China's Belt and Road
initiative and Saudi Arabia’s Vision 2030 propels our energy cooperation into a new era. Through
this robust alliance, Rongsheng Petrochemical and Aramco engage in resource sharing, leverage
each other's strengths, and ensure mutual benefits. This not only strengthens our competitive
position in the global petrochemical sector but also fosters the deepening of comprehensive
Rongsheng Petrochemical Co., Ltd. Full Text of 2023 Annual Report
energy trade cooperation between China and Saudi Arabia.
Driving development through determined action and charting new courses with
vigorous effort. This year, our entire team consistently demonstrated a spirit of confronting
challenges and pushing forward with determination, achieving notable breakthroughs in project
management. We strategically directed our focus toward the high-end petrochemical industry
chain, successfully started up a series of new projects and facilities. These include ZPC's new
units for producing 400,000 tonnes of ABS, 380,000 tonnes of polyether, 270,000/600,000 tonnes
of PO/SM, 100,000 tonnes of maleic anhydride rare-earth rubber alongside a 70,000-tonne nickel-
based maleic anhydride rubber unit, a 60,000-tonne solution polymerized styrene-butadiene
rubber unit, a 300,000-tonne vinyl acetate unit, and a 1,000-tonne alpha-olefin pilot plant.
Additionally, Yongsheng Technology 's expansion project now produces 250,000 tonnes of
functional polyester film annually. Encompassing new energy, new materials, organic chemicals,
synthetic resins, and synthetic rubber, our industrial chain continues to deepen, while our product
range becomes increasingly robust and comprehensive. In January of this year, we also announced
the investment and construction of the Jintang new materials project, with all major projects
progressing systematically.
Proactively addressing needs with decisive actions. This year has seen significant
structural adjustments in the capital markets, including the full implementation of the registration
system and phased tightening of IPOs and refinancing. Additionally, new regulations such as
buybacks and increases in holdings have been introduced. Amidst a record number of buybacks
by A-share listed companies, we have stood out for two consecutive years with buyback amounts
among the highest in the market. In response to the directive from the Political Bureau of the
Central Committee to "stimulate the capital market and boost investor confidence", we initiated
our third buyback phase in August 2023. Building on the success of the previous phases, where
we repurchased shares totaling 3.988 billion yuan, we expanded the range of the third phase from
1-2 billion yuan to 1.5-3 billion yuan. To date, our cumulative repurchase amount has reached
6.98 billion yuan, accounting for 5.46% of the total shares. In January 2024, we received
notification from our controlling shareholder about a planned increase in shareholding by 1-2
billion yuan over the next six months, demonstrating their confidence in our long-term
development. Both the first and second phases of our share repurchase have been successfully
Rongsheng Petrochemical Co., Ltd. Full Text of 2023 Annual Report
completed, and the third phase, along with the controlling shareholder's increase plan, is still
ongoing. Rongsheng’s substantial investment in buybacks reflects our confidence in the
Company's future prospects and our commitment to protecting the interests of our investors while
maintaining the market value of the Company.
Celebrating our past achievements and setting our sights higher for the future. The year
2024 will mark the 75th anniversary of the founding of the People’s Republic of China, and will
also be a critical year for realizing the objectives and tasks of the 14 th Five-Year Plan. We are
dedicated to meticulously crafting a blueprint for the enterprise's high-quality development. Our
focus will be on pioneering investment and development strategies, bolstering safety management,
accelerating project construction, enhancing internal controls, and enhancing the competitiveness
of our scientific research and innovation. Additionally, we are dedicated to nurturing new
productive forces and actively driving the digital and intelligent transformation of the industry,
thus initiating a new era of green development. As we embark on this new journey, our future is
bright, but the road ahead will not be plain sailing. "Only through relentless forging does iron turn
to steel; only with long-term vision can we plan for centuries." Let us embody the dynamic spirit
of dragons and horses and maintain our unwavering determination to progress against all odds.
With the courage to "remake the heavens and the earth," we will continue to innovate with the
vigor of a dragon and the agility of a tiger. Step by step, we will translate our grand aspirations
into a splendid reality, continuously propelling our company to achieve new advancements and
breakthroughs.
Brimming with confidence, Rongsheng Petrochemical remains steadfast in joining forces
with all shareholders and partners who trust and support our growth. Together, we will embark on
a new journey, dedicated to achieving long-term prosperity!
Board of Directors of Rongsheng Petrochemical Co., Ltd.
April 2024
Full Text of 2023 Annual Report
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 warrant that the contents
in this annual report are true, accurate, and complete and have no false
representations, misleading statements or material omissions, and they shall
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 deliberate on the 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 9,573,144,542 shares of the Company as the base, a
cash dividend of RMB 1.0 (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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Full Text of 2023 Annual Report
Contents
Section I Important Notice, Table of Contents and Definitions .................... 1
Section II Company Profile and Key Financial Indicators ........................... 6
Section III Management Discussion and Analysis........................................ 11
Section IV Corporate Governance ................................................................ 61
Section V Environmental and Social Responsibility .................................... 86
Section VI Important Matters ....................................................................... 94
Section VII Changes in Shares and Shareholders ...................................... 129
Section VIII Preferred Shares ..................................................................... 137
Section IX Bonds .......................................................................................... 138
Section X Financial Reports ........................................................................ 142
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Full Text of 2023 Annual Report
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 2023
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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Full Text of 2023 Annual Report
Definitions
Term Refers to Definition
Company, the Company,
Refers to Rongsheng Petrochemical Co., Ltd.
Rongsheng Petrochemical
Zhejiang Rongsheng Holding Group Co., Ltd., controlling shareholder of the
Rongsheng Holding Refers to
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 Company’s
Rongsheng Venture Capital Refers to
controlling shareholder
Saudi Aramco Refers to Saudi Arabian Oil Company
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
Shengyuan Chemical Fiber Refers to Zhejiang Shengyuan Chemical Fiber Co., Ltd., a subsidiary of the 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 (Singapore) Refers to Rongsheng Petrochemical (Singapore) Pte. Ltd., a subsidiary of the Company
Rongsheng International
Refers to Rongsheng International Trading Co., Ltd., a subsidiary of the Company
Trading
Yongsheng Technology Refers to Zhejiang Yongsheng Technology Co. Ltd., a subsidiary of the Company
Rongsheng New Materials
Refers to Rongsheng (Zhoushan) New Materials Co., Ltd., a subsidiary of the Company
(Zhoushan)
Zhejiang Yisheng Petrochemical Co., Ltd., a joint stock subsidiary of the
Zhejiang Yisheng Refers to
Company
Hengyi Trading Refers to Ningbo Hengyi Trading Co., Ltd., a joint stock subsidiary of the Company
Xiaoshan Rural Commercial Zhejiang Xiaoshan Rural Commercial Bank, a joint stock subsidiary of the
Refers to
Bank Company
Zhejiang Petroleum Refers to Zhejiang Petroleum Co., Ltd., a joint stock subsidiary of ZPC
ZPC (Singapore) Refers to ZPC (Singapore) Pte. Ltd., a subsidiary of ZPC
Jintang Logistics Refers to Jintang Logistics Co., Ltd, a subsidiary of ZPC
Zhejiang Dingsheng Petrochemical Engineering Co., Ltd, a joint stock subsidiary
Dingsheng Petrochemical Refers to
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 Zhongjin
Yisheng New Materials Refers to
Petrochemical
Niluoshan New Energy Refers to Ningbo Niluoshan New Energy Co., Ltd., a subsidiary of Zhongjin Petrochemical
Yisheng Dahua Refers to Yisheng Dahua Petrochemical Co., Ltd., a subsidiary of Yisheng Investment
Hainan Yisheng Petrochemical Co., Ltd., a joint stock subsidiary of Yisheng
Hainan Yisheng Refers to
Investment
Hong Kong Yisheng Refers to Hong Kong Yisheng Co., Ltd., a subsidiary of Hainan Yisheng Petrochemical
Dalian Rongxincheng Refers to Dalian Rongxincheng Trading Co., Ltd., a subsidiary of Yisheng Dahua
Zhejiang Rongtong Chemical Fiber New Material Co., Ltd., a subsidiary of
Rongtong New Materials Refers to
Yisheng Dahua
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Zhejiang Dongjiang Green Petrochemical Technology Innovation Center Co.,
Dongjiang Technology Refers to
Ltd.
Yisheng Chemical Refers to Ningbo Yisheng Chemical Co., Ltd, a subsidiary of Hong Kong Sheng Hui
Shanghai Brilliance Rating Refers to Shanghai Brilliance Credit Rating & Investors Service Co., Ltd.
The Securities Supervision
Refers to China Securities Regulatory Commission
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 yuan, 10,000 yuan
Reporting period Refers to January 1, 2023 to December 31, 2023
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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
None
any)
Listed on Shenzhen Stock Exchange
Company name in Chinese Rongsheng Petrochemical Co., Ltd.
Company abbreviation in
Rongsheng Petrochemical
Chinese
Company name in the foreign
RONGSHENG PETROCHEMICAL CO., LTD.
language (if any)
Company abbreviation in the
RSPC
foreign language (if any)
Legal representative of the
Li Shuirong
Company
Place of registration No. 98 Hongyang Road, Yinong Town, Xiaoshan District, Hangzhou, Zhejiang Province
Zip code of the registered
311247
address
Historical changes in the
registered address of the None
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 Building of Zhejiang Rongsheng Holding
Address Group, Yinong Town, Xiaoshan District, Group, Yinong Town, Xiaoshan District,
Hangzhou 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
Shenzhen Stock Exchange（http://www.szse.cn）
Company discloses the annual report
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Name and website of the media selected by the Securities Times, China Securities Journal, CNINFO
Company to disclose the annual report (www.cninfo.com.cn)
Archiving place for the annual report of the
Office of the Board of Directors
Company
IV. Registration Changes
Uniform social credit code 91330000255693873W
Changes in the Company's main business since its listing (if
No change
any)
Changes of previous controlling shareholders (if any) No change
V. Other Relevant Information
The accounting firm hired by the Company
Pan-China Certified Public Accountants (Special General
Name of accounting firm
Partnership)
Tower B, China Resources Building, No.1366, Qianjiang Road,
Office address of the accounting firm
Shengcheng District, Hangzhou
Name of signing accountants Jia Chuan, Xu Haihong
The sponsor institution engaged by the Company to perform the continuous supervision responsibility during the
reporting period
□Applicable Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during the
reporting period
□Applicable Not applicable
VI. Key Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate prior years’ accounting data
Yes □No
Reasons for retroactive adjustment or restatement
Changes in accounting policies
Increase or decrease
of this year
2022 2021
compared with the
2023 previous year
After Before After
Before
adjustmen After adjustment adjustmen adjustmen
adjustment
t t t
325,111,614,2 289,094,841,6 289,094,84 183,074,93 183,074,93
Operating income (RMB) 12.46%
68.09 12.76 1,612.76 0,286.51 0,286.51
Net profit attributable to
1,158,146,248 3,340,162,428 3,340,713, 13,236,054, 13,236,054,
shareholders of the listed -65.33%
.89 .95 394.56 388.76 388.76
company (RMB)
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Full Text of 2023 Annual Report
Net profit attributable to
shareholders of the listed
820,092,947. 2,011,613,277 2,012,164, 12,844,186, 12,844,186,
company net of non- -59.24%
36 .71 243.32 998.53 998.53
recurring gain and loss
(RMB)
Net cash flow from
28,079,221,50 19,058,136,88 19,058,136 33,564,785, 33,564,785,
operating activities 47.33%
8.73 5.36 ,885.36 433.94 433.94
(RMB)
Basic earnings per share
0.12 0.33 0.33 -63.64% 1.31 1.31
(RMB per share)
Diluted earnings per
0.12 0.33 0.33 -63.64% 1.31 1.31
share (RMB per share)
Weighted average return
2.48% 6.87% 6.87% -4.39% 30.76% 30.76%
on net assets
Increase or decrease
at the end of this
At the end of 2022 year compared with At the end of 2021
At the end of the end of the
2023 previous year
After Before After
Before
adjustmen After adjustment adjustmen adjustmen
adjustment
t t t
374,918,440,3 362,587,416,6 362,588,59 338,230,59 338,230,59
Total assets (RMB) 3.40%
11.68 87.68 4,491.52 8,101.17 8,101.17
Net assets attributable to
44,335,891,08 47,260,382,90 47,261,560 49,251,305, 49,251,305,
shareholders of the listed -6.19%
5.79 1.11 ,704.95 948.40 948.40
company (RMB)
Reasons for changes in accounting policies and correction of accounting errors
On December 13, 2022, the Ministry of Finance ("MOF") issued Interpretation No. 16 of the Accounting
Standards for Business Enterprises ("ASBE") (Caikuai [2022] No. 31), which clarifies that a single transaction
initially does not exempt from the recognition of deferred taxes an equal amount of taxable temporary differences
and deductible temporary differences arising from a lease. The Company implemented the above provisions of
Interpretation No. 16 from January 1, 2023, and retrospectively adjusted the temporary differences arising from
lease liabilities and right-of-use assets recognized as a result of a single transaction to which Interpretation No. 16
applies.
The lower of the net profit before and after deducting non-recurring profit and loss of the Company in the last
three financial years is negative, and the audit report of the last year shows that the Company's sustainable
operation ability is uncertain.
□Yes No
The lower of the net profit before and after deducting non-recurring profit and loss is negative
□Yes No
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’s accounting standards
□Applicable Not applicable
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’s accounting standards.
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Differences in net profits and net assets in financial reports disclosed in accordance with foreign
accounting standards and China’s accounting standards
□Applicable Not applicable
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’s accounting standards.
VIII. Key Quarterly Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 69,720,518,872.77 84,804,764,879.52 84,522,027,833.53 86,064,302,682.27
Net profit attributable to
shareholders of the listed -1,467,816,809.90 341,183,193.35 1,234,236,470.21 1,050,543,395.23
company
Net profit attributable to
shareholders of the listed
-1,572,912,484.98 184,869,242.14 1,258,321,459.23 949,814,730.97
company net of non-recurring
gain and loss
Net cash flow from operating
-11,060,718,806.71 8,781,939,375.81 28,508,836.15 30,329,492,103.48
activities
Whether there is significant difference between the above financial indicators or the total sum of them and the
financial indicators related to the quarterly report and semiannual report disclosed by the Company
□Yes No
IX. Items and Amounts of Non-recurring Gain and Loss
Applicable □Not applicable
Unit: RMB
Amount of Amount of
Item Amount of 2022
2023 2021
Gains on disposal of non-current assets (including write-off of
34,130,889.49 14,208,115.78 10,301,050.55
provision for impairment)
Government grants included in profit or loss (excluding those closely
related to operating activities of the Company, satisfying government
60,299,389.39 2,359,477,514.76 114,893,264.14
policies and regulations, enjoyed based on certain standards, and
continuously affecting gains or losses of the Company)
Gains on changes in fair value of financial assets and financial
liabilities held by non-financial enterprises, and gains from disposal of
483,856,260.59 292,348,639.74 785,398,586.27
financial assets and financial liabilities, excluding those arising from
hedging business related to operating activities
Fund possession charge from non-financial entities and included in
248,144.66 205,188.67 2,035,569.54
profit or loss
Gains on assets consigned to the third party for investment or
625,599.45
management
Gain/loss from external entrusted loans 26,123,140.37
Income generated from investment cost for acquiring subsidiaries, 281,497.24
associated enterprises or joint ventures falling below the fair value of
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share in the recognizable net asset of the investee when the investment
is conducted
Other non-operating revenues and expenditures except for the
-7,549,562.66 -9,253,736.65 6,062,244.39
aforementioned items
Other profit/loss items falling within the definition of non-recurring
14,297,547.73 2,748,797.01 9,366,961.04
gain or loss
Less: Affected amount of income tax 37,178,195.47 371,798,967.48 134,234,216.27
Affected amount of minority shareholders’ equity (after tax) 210,051,172.20 959,386,400.59 428,986,306.49
Total 338,053,301.53 1,328,549,151.24 391,867,390.23
Other gain/loss items falling within the definition of non-recurring gain or loss:
□Applicable Not applicable
The Company has 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
Item Amount involved (yuan) Reason
Net non-recurring gains and losses attributable to owners
1,328,549,151.24
of the parent company in 2022
Net non-recurring gains and losses attributable to owners
of the parent company calculated in accordance with
"Interpretative Announcement for Information Disclosure 388,666,262.68
by Public Securities Issuers No. 1 - Non-Recurring Gains
and Losses (Revised in 2023)" for 2022
Difference 939,882,888.56
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Section III Management Discussion and Analysis
I. Industry of the Company during the Reporting Period
Looking back on last year, although the world economy started recovery, the growth was still slow and
unbalanced, and the persistent turmoil in the international situation and the persistent negative impact of the
pandemic on the supply chain still significantly dragged down the pace of recovery. In the face of multiple
difficulties, China has achieved high-quality and steady development, and made a series of progress in the
construction of modern industrial system. 2023 is the first year to fully implement the spirit of the 20th National
Congress of the Communist Party of China, and it is also a crucial year to carry out the "14th Five-Year" Plan.
The annual GDP exceeds RMB 126 trillion, with a year-on-year increase of 5.2%, ranking among the world's
major economies, and its contribution rate to world economic growth is expected to exceed 30%, making it the
biggest engine of world economic growth. China petrochemical industry has a complete industrial chain with
great development resilience and potential, and its long-term positive fundamentals have not changed. In the
past year, the petrochemical industry accelerated its recovery, production and supply increased steadily, and
market demand gradually improved.
(1) Global economy
During the reporting period, the global economic recovery faced multiple dilemmas. Despite the
aggressive rate hike by the Federal Reserve Board and the lack of endogenous motivation in the European
economy, the world economy still did not get rid of the "stagflation" dilemma of high inflation and sluggish
demand. In 2023, the world economy showed a weak recovery trend, with a global inflation rate of 7%, and a
global GDP growth rate of only 3%. The external environment was more complicated and changeable due to
multiple factors, such as great power game and geopolitics.
USD/Barrel Brent crude oil price in 2023
100
94
91.06
90 86.16
83.09 84.11 83.18
82.71
80.1
78.53 77.86
80 75.7 74.89
70
60
50
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
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Source: Hithink RoyalFlush iFind
(2) China's economic situation
This year, in the face of an unusually complicated international environment and arduous tasks of reform,
development and stability, China's economic development reached a new level, with its GDP exceeding RMB
126 trillion, up by 5.2%, ranking among the leading economies in the world in terms of growth rate. GDP
increased by 4.5%, 6.3%, 4.9% and 5.2% respectively in the four quarters of 2023, showing a trend of low in
the beginning, high in the middle and stable in the end. The profits of industrial enterprises have recovered since
August, but due to the drag in the first half of the year, a negative growth was recorded throughout the year. In
2023, the total profits of industrial enterprises above designated size in China reached RMB 7.69 trillion, with a
year-on-year growth rate of -2.3% and a previous value of -4.0%, maintaining a recovery trend. Although
industrial enterprises are facing difficulties such as the world economic downturn, blocked industrial exports,
insufficient domestic demand and falling prices of industrial products, they have continued to recover overall
with the gradual effectiveness of various policies and measures to promote the development of manufacturing
industry.
Year-on-year growth of monthly cumulative operating revenue and total profit
%
25
20
15
10
5.9
5 1.1
0.5 0.1 0.0 0.3 1.0
-1.3 -0.5 -0.4 -0.5 -0.3
0 -2.3
-4.0 -4.4
-5 -7.8
-9.0
-11.7
-10
-15.5
-15
-16.8
-18.8
-21.4 -20.6
-20 -22.9
-25
Jan-Dec Jan-Dec Jan-Mar Jan-Apr Jan-May Jan-Jun Jan-Jul Jan-Aug Jan-Sep Jan-Oct Jan-Nov Jan-Dec
2022 2023
Growth of operating revenue Growth of total profit
Source: National Bureau of Statistics
(3) Situation of the petrochemical industry
As the foundation and pillar industry of national economy, petrochemical industry is one of the key and
major industries to promote high-quality economic development. According to the statistics of China Petroleum
and Chemical Industry Federation, in 2023, the petrochemical industry realized an operating income of RMB
15.95 trillion, with a year-on-year decrease of 1.1%; a total profit of RMB 0.87 trillion, down 20.7% year-on-
year; and a total import and export volume of USD 0.95 trillion, down 9.0% year-on-year. The poor
performance of petrochemical industry is mainly due to the large price drop of crude oil, natural gas and most
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chemical products.
In terms of subdivided sectors in petrochemical industry: the oil and gas sector realized an operating
income of RMB 1.44 trillion, down 3.9% year-on-year; and a profit of RMB 301.03 billion, down 15.5% year-
on-year. The oil refining sector realized an operating income of RMB 4.96 trillion, up 2.1% year-on-year; and a
profit of RMB 65.6 billion, up 192.3% year-on-year. The chemical sector achieved an operating income of
RMB 9.27 trillion, down 2.7% year-on-year; and a profit of RMB 486.26 billion, down 31.2% year-on-year.
Because of the low base in 2022, the operating income and profit of the oil refining sector in the three major
sectors have both increased, while the operating income and profit of the oil and gas sector and chemical sector
have decreased, which is related to the high base of the oil and gas sector and the chemical sector in 2022.
In order to realize the healthy development of the petrochemical industry, in 2023, the National
Development and Reform Commission, the Ministry of Industry and Information Technology and other relevant
ministries and commissions successively promulgated a number of industrial policies closely related to the
petrochemical industry. These policies help stabilize the growth of the petrochemical industry, accelerate the
structural adjustment and intensive cluster development of the industry, and consolidate and strengthen the
supply chain of the industrial chain, thus laying a good foundation for the high-quality development of the
industry.
S/N Time Policy
1 March Guide for the Establishment of Energy Industry Standard Plan in 2023
2 March Green Industry Guidance Catalogue (2023 Edition) (Draft for Comments)
Benchmark Level and Standard Level of Energy Efficiency in Key Industrial Areas (2023
3 June
Edition)
4 August Work Plan for Steady Growth of Petrochemical Industry
Guiding Opinions on Promoting Green, Innovative and High-quality Development of Oil
5 October
Refining Industry
6 November Construction Plan for National Peak Carbon Dioxide Emissions Pilot
In 2023, the petrochemical industry has made new breakthroughs and new progress in scientific and
technological innovation, green and low-carbon transformation and digital upgrading, deepening international
cooperation, cultivating world-class enterprises and modern industrial clusters, research on industrial policies
and major issues, etc. However, there is still a certain gap from the goal of high-quality development, and the
shortage of high-end products and high-performance materials has not improved. Enterprises need to enhance
their independent innovation capabilities and focus on the high-performance of key core technologies, major
common technologies and materials.
II. Main Businesses of the Company during the Reporting Period
Procurement mode of main raw materials
Unit: RMB
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Significant
Proportion in the Average price in Average price in
Main raw Procurement changes in
total purchase the first half of the second half of
materials mode settlement
amount the year the year
method
Quotation
Crude oil 66.23% No 4,063.20 4,395.86
purchase
Quotation
Naphtha 1.95% No 4,993.18 4,824.56
purchase
Quotation
Fuel oil 3.21% No 3,359.39 3,898.00
purchase
Quotation
PX 7.57% No 7,187.90 7,320.01
purchase
Energy purchase prices accounting for more than 30% of total production costs
□Applicable Not applicable
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Production technology of main products
Development
Core
Main stage of Proprietary
technical Product R&D advantages
products 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, pyrolysis
Ethylene, core
technology and gas. The pyrolysis gas containing ethylene, propylene and other products will be quenched, compressed, alkali washed, dried,
Propylene technical
application innovation hydrogenated, and undergo cold-thermal separation and methanization to produce polymer grade ethylene and polymer grade
personnel
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
core The LUPOTECHT tubular reactor technology from LyondellBasell company can switch to produce LDPE homopolymer resin
EVA/LDPE technology and
technical particles of different brands and EVA copolymer resin particles with VA content less than or equal to 28% in one production line.
application innovation
personnel
Several LyondellBasell company has developed the Spherizone process based on Spheripol process technology. The Spherizone process
Stage of Introduction
core based on multizone circulating reactor (MZCR) technology is adopted to divide a reactor into two reaction areas to control the
PP technology and
technical reaction conditions independently. The gradually growing polymer particles will circulate quickly and repeatedly in the two
application innovation
personnel 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
Stage of Introduction and phenol of lummus company in the United States. DPC products are of high quality and suitable for the production of high-
core
PC technology and quality polycarbonate; 2) Polymerization unit: the patented technology of non-phosgene transesterification and melt
technical
application innovation polycondensation of EPC company in German is adopted. Main features: compared with phosgenation, the technology has lower
personnel
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 UOP Parex process and ADS-37/47 adsorbent, that is, to use PDEB as desorption
Stage of Introduction
core agent, and produce PX products by simulated moving bed technology and supporting adsorption and separation process. 2#
PX technology and
technical xylene fractionation unit adopts fractionation process matched with Parex and isomerization, to cut the raw materials meeting
application innovation
personnel the feed requirements for adsorption and separation unit through distillation column separation; The isomerization unit adopts
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UOP Isomar process technology and Shell OparisNext ethylbenzene conversion catalyst to increase xylene production through
isomerization reaction by using the mixed C8 aromatic hydrocarbons with lean PX extracted from the side line of Parex raffinate
column are used as raw materials.
The extraction and distillation unit adopts UOP sulfolane extraction and distillation process, that is, to use sulfolane as solvent
and light and heavy whole oil as raw materials to produce extract oil (mixed aromatic hydrocarbon) and raffinate oil. The
disproportionation unit adopts UOP Tatoray process and TA- 32 disproportionation catalyst, to increase the production of xylene
Several
Stage of Introduction and benzene by using toluene and C9/C10A as raw materials for disproportionation reaction. The B/T fractionation unit adopts a
core
Benzene technology and fractionation process matched with extraction and disproportionation, to separate benzene products and toluene by distillation in
technical
application innovation benzene column and toluene column with the mixed aromatic hydrocarbons extracted and disproportionated as raw materials.
personnel
The 1# xylene fractionation unit adopts the fractionation process matched with reforming and disproportionation, to cut the raw
materials meeting the feed requirements for adsorption and separation device and other devices through distillation column
separation.
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, and
Several
Stage of Introduction POP process technology of Innovare Engineering Holding Limited. The first type of product is a polyoxypropylene polyol
Polyether core
technology and product, which is obtained by copolymerization with propylene oxide and ethylene oxide using glycerol or organic amines as
polyol 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
styrene-
The process technology of SSBR and NDBR is the patented technology of ICB company in Germany. The production method of
butadiene Several
Stage of Introduction solution polymerized styrene-butadiene rubber (SSBR) is a solution polymerization method, where butadiene and styrene are
rubber (SSBR) core
technology and polymerized in a mixed solvent of normal hexane and cyclohexane in the presence of a polymerization catalyst NBL; The rare
and rare earth technical
application innovation earth cis-1,4-polybutadiene rubber (NDBR) is produced by solution polymerization. Butadiene is polymerized in an n-hexane
cis- personnel
solution in the presence of NdV, ACT and AOC catalysts.
polybutadiene
rubber
(NDBR)
The core technology of this product has its own independent intellectual property rights. The Company has participated in the
formulation of the national standards for the energy consumption limit per unit product of this product.
Several The large-scale device greatly reduces the investment cost per unit product. Besides, the continuous improvement of new
Leading Introduction
core technologies and new equipment has shortened the process. For example, the oxidation unit adopts pressure filter instead of
PTA position in and
technical vacuum filter, dryer, intermediate silo and other auxiliary systems; The refining unit adopts pressure filter, which changes two-
China innovation
personnel stage separation into one-stage separation. Compared with the traditional process, the number of equipment is reduced, the
maintenance cost is also greatly cut, the reliability of equipment is improved, and the stability of the device is improved
accordingly. At present, the pressure filter technology has been well applied in PTA plant and has become a development trend at
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present. In addition, the application of new materials in PTA production has further reduced the investment cost. At present,
dual-phase steel is used to replace part of titanium alloy and 317L, which reduces the material cost.
In terms of material consumption, all PTA patent manufacturers have done a lot of work in optimizing oxidation reaction
conditions, adjusting catalyst ratio, increasing catalyst recovery, PTA mother liquor solid recovery, methyl acetate recovery and
so on, and all of them have been successfully applied to industrial devices. The use of these optimizations and new technologies
greatly reduce the material consumption of PTA production.
In terms of energy consumption, as the oxidation reaction is exothermic, a lot of heat will be released during such reaction. At
present, PTA patent technologies use the reaction heat to generate low-pressure steam of different grades for air compressors and
other low-pressure steam users in the device (such as dehydration tower). By using this method, the oxidation tail gas at the top
of the oxidation reactor is cooled and energy is recovered; Hydrogenation reaction is a high-temperature and high-pressure
reaction. During the crystallization process, with the gradual reduction of pressure, a large number of steam with different grades
will flash out, which is basically used to heat the feed of hydrogenation reactor, and can be heated to about 260°C. Oxidation tail
gas is high-pressure gas, part of which is used as the driving power of air compressor, and the rest is used for conveying gas and
inert gas in the device to users. In addition, the process arrangement is optimized as much as possible, to make full use of the
heat exchange of hot and cold process fluids. Through the above measures, PTA basically does not need to supply low-pressure
steam from outside at present, but only needs a certain amount of high-pressure steam to heat the feed of hydrogenation reactor
from about 260°C to about 286°C; The drive of the air compressor does not need to supply energy from outside. In order to
reduce energy consumption, some other measures have been taken, such as increasing the feed concentration of hydrogenation
reactor and increasing the circulation of mother liquor in TA unit. At present, the comprehensive energy consumption of PTA has
been greatly reduced, and the energy consumption of products is better than the advanced value of national standards.
Maximum output, maximum conversion rate and minimum energy consumption; By tapping the equipment potential, achieve
the purpose of improving production and efficiency without increasing energy consumption; Improve energy utilization rate and
Several reduce production cost; Eliminate the filter blockage, waste of labor, save the cost of bagging, and bring considerable economic
Introduction
Large-scale core benefits to the company; Make the basic magnesium sulfate whisker, tetrapod-like zinc oxide whisker, magnesium salt whisker,
Polyester and
application technical β-type silicon nitride whisker, melamine cyanurate, microencapsulated red phosphorus flame retardant, ethylene glycol, etc., into
innovation
personnel flame retardant and anti-dripping whisker glycol solution through a certain manufacturing process by using the company's
patented technology; Add the flame-retardant and anti-dripping whisker glycol solution into the slurry preparation tank, and
prepare the flame-retardant and anti-dripping polyester through esterification, pre-polycondensation and final polymerization.
Multi- Several
Leading Introduction The core technology of this product adopts the current international advanced high-temperature crystallization cutting and UOP
functional core
position in and solid-phase polycondensation process, with a short process, low energy consumption, and domestic leading performance of
polyester bottle technical
China innovation comprehensive energy consumption per unit product.
grade chip personnel
Through the independent design and installation of multiple addition points, online adding equipment with various additional
Several materials, dynamic and static mixing equipment, oil nozzle, winding machine, etc. on the melt direct spinning line, the existing
Introduction
Large-scale core equipment was optimized to obtain benefits from the differentiated and high-end products of polyester melt direct spinning and
Fiber and
application technical realize transformation and upgrading. The contradiction between large capacity polyester plants and the production of small
innovation
personnel 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
Texturing core 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.
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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 used
Backplate film and
production technical 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 applied
masterbatch production technical
innovation to the production of polyester films.
personnel
Several
Introduction Through the dispersion of silicon particles, add silica with larger particle size and smaller void ratio to the reaction kettle during
Matte master Mass core
and the polymerization process, so as to prepare matte master batch with high fog and low matte, which can be used in the
batch production technical
innovation production of polyester matte film.
personnel
Several
Introduction Use the technical advantages of true three-layer die in film drawing production line, to add special matte master batch to any
Mass core
Matte film and single-layer or multi-layer structure, in order to realize the manufacture of a full range of products such as single-sided matte,
production technical
innovation double-sided matte, low matte, medium matte and high matte products and other products with additional functions.
personnel
Production capacity of main products
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Capacity
Design
under
capacity Capacity
Main products construction Investment and construction
(10,000 utilization
(10,000
tons/year)
tons/year)
Fuel 1366
Para-xylene (PX) 1060
M-xylene (MX) 20
Benzene (BZ) 330
Ethylene glycol (MEG) 240
Purified terephthalic acid (PTA) 2150
Purified isophthalic acid (PIA) 30
Bi-oriented polyester film (BOPET) 43
Shengyuan chemical fiber
Pre-oriented yarn (POY) 46 25 differential fiber project is under
construction
Shengyuan chemical fiber
Fully drawn yarn (FDY) 54 25 differential fiber project is under
construction
Shengyuan chemical fiber
Draw texturing yarn (DTY) 42 25 differential fiber project is under
construction
Bottle grade chip (PET) 250 280
Full-density polyethylene (FDPE) 90
High-density polyethylene (HDPE) 65 Adjust
flexibly
according to ZPC high performance resin project
High-density polyethylene (LDPE) 80 40
market is under construction
Ethylene vinyl acetate copolymer ZPC high performance resin project
30 40
(EVA) is under construction
Polypropylene (PP) 180
ZPC high performance resin project
Acrylonitrile butadiene styrene (ABS) 40 120
is under construction
Styrene monomer (SM) 240
Polycarbonate (PC) 52
Phenol (PH) 80
Acetone (ACT) 50
Methyl methacrylate (MMA) 19
Acrylonitrile (AN) 52
Butadiene (BD) 70
Vinyl acetate (VAC) 30
Sulfur (S) 121
Polyether glycol/Polyether polyol
38
(PPG/POP)
Low cis-polybutadiene rubber (LCBR) 10
Solution styrene butadiene rubber
6
(SSBR)
Types of products in major chemical parks
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Major chemical parks Types of products
Zhoushan Green Petrochemical Base Products in the petrochemical industrial chain
Ningbo Petrochemical Economic＆Technological Development
Products in the petrochemical industrial chain
Zone
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
Applicable □Not applicable
Project EIA approval
Dangerous goods container yard of 40 million tons/year refining and chemical integration project of Zhejiang ZHDJS [2023]
Petroleum & Chemical Co., Ltd. No.6
Supporting terminal project (Phase I) multi-purpose terminal reconstruction project of 40 million tons/year ZHDJS [2023]
refining and chemical integration project of Zhejiang Petroleum & Chemical Co., Ltd. No.9
ZHDJS [2023]
α olefin plant of Zhejiang Petroleum & Chemical Co., Ltd.
No.13
DHJB [2023]
3# aromatics raffinate oil olefin removal project of Zhejiang Petroleum & Chemical Co., Ltd.
No.8
ZHDJS [2023]
High-voltage XLPE insulated cable project of Zhejiang Petroleum & Chemical Co., Ltd.
No.14
ZHDJS [2023]
High performance resin project of Zhejiang Petroleum & Chemical Co., Ltd.
No.18
ZHX [2023]
Raw material product transportation project of Ningbo Zhongjin Petrochemical Co., Ltd.
No.36
Intelligent functional fiber project with an annual output of 500,000 tons (Shengyuan Phase II) of Zhejiang Approval in
Shengyuan Chemical Fiber Co., Ltd. progress
The listed company was subject to abnormal production stoppage during the reporting period
□Applicable Not applicable
Relevant approvals, permits, qualifications, and validity terms
Applicable □Not applicable
Unit approved Qualification / license Approval department Period of validity
Rongsheng Safety Production Standardization Hangzhou Municipal Emergency
April 2026
Petrochemical Certificate Management Department
National Industrial Product Zhejiang Provincial Administration for
ZPC December 30, 2025
Manufacture Licensing Certificate Market Regulation
Registration Certificate for Zhejiang Provincial Registration Center for
ZPC June 13, 2026
Hazardous Chemicals Chemicals
Zhejiang Provincial Emergency Management
ZPC Safe Production License December 27, 2026
Department
ZPC Pollutant Discharge Permit Zhoushan Ecological Environment Bureau July 18, 2024
ZPC License for Port Operation Zhoushan Shipping and Port Administration October 11, 2026
Project Approval List Specified in Aircraft Airworthiness Approval Department
ZPC July 13, 2024
Technical Standards (3# jet fuel) of Civil Aviation Administration
Project Approval List by Civil
Aircraft Airworthiness Approval Department
ZPC Aviation Oil Testing Unit (3# jet May 17, 2024
of Civil Aviation Administration
fuel)
Special License for Production of Ministry of Industry and Information
ZPC May 07, 2026
MCCs (Phase I) Technology (MIIT)
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Special License for Production of Ministry of Industry and Information
ZPC November 28, 2027
MCCs (Phase II) Technology (MIIT)
Import Qualification for Non-state
ZPC Ministry of Commerce /
Trade of Crude Oil
Export Qualification for Non-state
ZPC Ministry of Commerce /
Trade of Refined Oil
Import Qualification for Non-state
ZPC Ministry of Commerce /
Trade of Refined Oil (Fuel Oil)
Zhongjin Ningbo Ecological Environment Bureau
Pollutant Discharge Permit December 31, 2025
Petrochemical (Zhenhai Branch)
Zhongjin Ecological Environment Department of
Radiation Safety Permit July 16, 2028
Petrochemical Zhejiang Province
Zhongjin Zhejiang Provincial Emergency Management
Safe Production License June 04, 2026
Petrochemical Department
Zhongjin Registration Certificate for Registration Center for Chemicals of
October 13, 2025
Petrochemical Hazardous Chemicals Emergency Management Department
Niluoshan New Ningbo Ecological Environment Bureau
Pollutant Discharge Permit February 09, 2027
Energy (Zhenhai Branch)
Liaoning Provincial Emergency Management
Yisheng Dahua Safe Production License March 28, 2025
Department
License for Port Operation of the
Yisheng Dahua Dalian Traffic and Transportation Bureau July 24, 2025
People's Republic of China
Registration Certificate for Liaoning Provincial Work Safety Service
Yisheng Dahua November 15, 2026
Hazardous Chemicals Center
Yisheng Dahua Pollutant Discharge Permit Dalian Ecological Environment Bureau October 13, 2028
Department of Ecology and Environment of
Hainan Yisheng Safe Production License March 29, 2027
Hainan Province
Administration Approval Service Bureau of
Hazardous Chemical Business
Hainan Yisheng Yangpu Economic & Technological March 08, 2025
License
Development Area
Transportation, Maritime and Port Bureau of
License for Port Operation of the
Hainan Yisheng Yangpu Economic & Technological September 30, 2025
People's Republic of China
Development Area
Level III Enterprise for Work
Hainan Geological Testing and Research
Hainan Yisheng Safety Standardization (Hazardous July 06, 2024
Center
Chemicals)
Port Shoreline Use Certificate of Ministry of Transport of the People's
Hainan Yisheng May 20, 2065
People's Republic of China (PRC) Republic of China
Ecological Environment Bureau of Yangpu
Hainan Yisheng Pollutant Discharge Permit May 14, 2026
Economic Development Zone
Department of Emergency Management of
Hainan Yisheng Radiation Safety Permit December 26, 2026
Hainan Province
Authentication Certificate and
Qualification Certificate of
Hainan Yisheng Environment, Quality and China Quality Certification Center May 31, 2026
Occupational Safety Management
System
Registration Certificate for Registration Center for Chemicals of
Hainan Yisheng February 03, 2027
Hazardous Chemicals Emergency Management Department
Refer to the boiler
Special Equipment Registration Hainan Provincial Bureau of Quality and
Hainan Yisheng inspection
Certificate Technical Supervision
qualification period
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Port Facility Security Compliance
Hainan Yisheng Hainan Port and Waterway Administration August 09, 2026
Certificate
Hainan Provincial Department of Industry
Hainan Yisheng Radio Registration Certificate June 09, 2031
and Information Technology
Zhejiang Ningbo Ecological Environment Bureau
Pollutant Discharge Permit August 02, 2028
Yisheng (Beilun Branch)
Zhejiang Ecological Environment Department of
Radiation Safety Permit November 17, 2024
Yisheng Zhejiang Province
Shengyuan Safety Production Standardization Hangzhou Municipal Emergency
October 01, 2026
Chemical Fiber Certificate Management Department
Shengyuan
Pollutant Discharge Permit Hangzhou Ecological Environment Bureau November 05, 2026
Chemical Fiber
Yongsheng National Industrial Product Zhejiang Provincial Administration for
August 11, 2026
Technology Manufacture Licensing Certificate Market Regulation
Yongsheng
Pollutant Discharge Permit Shaoxing Ecology and Environment Bureau February 06, 2029
Technology
Engaged in oil processing, oil trade industry
Yes □No
The Company mainly imports crude oil from abroad as raw materials and engages in the research and
development, production and sales of various oil products, chemicals and polyester products. The Company's
products are rich in variety and complete in specifications, covering many fields such as new energy, new
materials, organic chemicals, synthetic fibers, synthetic resins, synthetic rubber, and oil products, basically
achieving "from a drop of oil to everything in the world", and constantly upgrading and improving the industrial
chain of new materials on the basis of the existing super-large integrated refining base worldwide and complete
upstream and downstream facilities.
Engaged in chemical fertilizer industry
□Yes No
Engaged in pesticide industry
□Yes No
Engaged in chlorine-alkali and soda ash industry
□Yes No
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 advantages
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”. Through the extension of the industrial chain, the Company has effectively reduced the business
cost, realized the mutual support of upstream and downstream sectors, and also improved its sustainable
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profitability and risk resistance. For example, ZPC can supply PX as raw material for PTA production to
shareholder units and related companies, and ethylene glycol as raw material for downstream production of
polyester bottle chips, films and chemical fibers. The release of ZPC's production capacity has greatly
supplemented the mutual supply demand of raw materials for the development of the Company's industrial
chain and realized self-supply and self-sufficiency of raw materials.
The interconnection of Zhoushan Green Petrochemical Base and Ningbo Petrochemical Base can realize
the coordinated development of both Ningbo and Zhoushan bases, and pipeline transportation greatly reduces
the risk and cost of ship transportation and land transportation; A large number of light hydrocarbon raw
materials by-products from Ningbo Petrochemical Base are transported to Zhoushan Green Petrochemical Base
through pipelines, which can be used as high-quality ethylene raw materials. Surplus oil products from
Zhoushan Green Petrochemical Base can be transported to Ningbo Petrochemical Base as high-quality raw
materials for aromatic hydrocarbon production.
The construction of ZPC Project has supporting facilities that can meet the demand of crude oil supply in
the two phases of the project. The total storage capacity of Mamu crude oil depot and Yushan Island crude 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 competition advantages
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; the “Belt and Road Economic Belt” 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.
ZPC Project is located in the concentrated consumption area of oil products and chemical products, with
the key products marketable. The target market of chemical products is mainly East China and South China,
where the economy is the most developed with the most active downstream consumption market for
petrochemical products, and whose related industries such as downstream plastic product processing industry,
light industry and daily chemical industry are developed, with strong market acceptance for bulk petrochemical
products. Refined oil has many sales channels and enjoys strong policy support and obvious competitive
advantages. 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,
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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 Company, with inherent strong market sensitivity and flexible decision-making mechanism, can not
only keep a close eye on the market, but also make timely and accurate adjustments to the strategy and seize the
preemptive opportunities of the market under its own mechanism advantages of fast pace and few links. The
management has a keen sense of investment, accurate timing for project operation and excellent investment and
financing capacity. The Company started from polyester chemical fiber, and after years of development, it has
formed a good foundation. 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.
Relying on the world’s largest single-unit 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, POE, 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 R&D and innovation advantages
The Company upholds a technological R&D pattern driven by both independent innovation and
cooperation. We have established many world-class R&D platforms, including a high-tech R&D 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 stepped up scientific research cooperation
with domestic and foreign countries and increased its R&D 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, which have gathered the strength of "production, learning, research and use" at home and abroad,
carried out research and development with independent innovation, and established an integrated achievement
improvement platform for laboratory innovation, small test, pilot test and industrial demonstration production,
and overcome the disadvantage that it is difficult to incubate and transform related achievements although with
basic research by other research institutes in China relying on the Company's flexible system and mechanism
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and complete industrial chain advantages, breaking through the final ceiling from scientific research
achievements to industrial promotion and application, boosting industrial technological innovation and
upgrading, seizing the technologically leading position, and promoting the Company's high-quality
development in the terms of technological independence, raw material diversification, high-end products, green
production and intelligent industry.
(5) Rich human resources advantages
Focusing on the construction of corporate culture, the Company has formed a favorable working
atmosphere and strong corporate cohesion. The Company has also trained a group of stable core management,
R&D 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. The Company
combines the employee examination with performance evaluation and replaces evaluations with competition to
dynamically evaluate employees’ comprehensive quality and form a healthy competition atmosphere 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
give full play to their abilities.
In addition, the Company attaches great importance to the management of talents and teams, and adopt a
two-pronged approach of internal incentives and external cultivation. In terms of internal management, we will
promote the construction of three teams of senior management, high potential and specialization, pay special
attention to talent evaluation and clean education, strengthen skill training and skill recognition, and improve
the quality of employees in all aspects. In terms of external cultivation, we will rely on the cooperation platform
of industry, academia and research to actively do a good job in the introduction of highly educated and highly
skilled talents, increase the proportion of high-quality employees, and provide new drivers for the development
of the enterprise.
(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 construction in systems such as information,
performance appraisal, and credit management are at the leading position in the industry. Meanwhile, through
brand and cultural construction, the Company has further enhanced its corporate cohesion and brand influence,
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won the "No.7 on the List of the Most Valuable Brands in Global Chemical Industry in 2023", "No. 16 among
the Top 50 Global Chemical Companies in 2023", "No. 5 on the List of the Top 500 Oil and Chemical
Enterprises in Sales Revenue in 2022 (Independent Production and Operation)", "No. 7 on the List of the Top
500 Oil and Chemical Listed Companies in Sales Revenue in 2022", "Best Practice Award of the Board of
Directors of Listed Companies in 2023", "Best Practice Case of ESG of Listed Companies in China in 2023",
"Golden Bull Prize Top 50 ESG Carbon Neutralization Awards of the First Guoxin Cup", "ESG Progress Case
of Xinhua Credit Jinlan Cup", "Capital Brand High-value Enterprise in Zhejiang Province in 2022", and "Four-
star Kunpeng Enterprise in Hangzhou", etc.
IⅤ. Core Business Analysis
1. Overview
Rongsheng Petrochemical is one of the leading private petrochemical enterprises in China, ranking 7th in
the list of the most valuable brands in global chemical industry and 16th in the top 50 global chemical
enterprises. The Company is mainly engaged in the research, development, production and sales of all kinds of
oil products, chemicals and polyester products. It has established seven production bases in Bohai Economic
Rim, Yangtze River Delta Economic Circle and Hainan Belt and Road Economic Circle, forming five industrial
chains of polyester, engineering plastics, new energy, high-end polyolefin and special rubber. It is one of the
important producers of polyester, new energy materials, engineering plastics and high value-added polyolefin in
Asia, with the largest production capacity of chemicals such as PX and PTA in the world.
(1) Main products
The Company's products are rich in variety and complete in specifications, covering many fields such as
new energy, new materials, organic chemicals, synthetic fibers, synthetic resins, synthetic rubber, and oil
products, basically achieving "from a drop of oil to everything in the world", and constantly upgrading and
improving the industrial chain of new materials on the basis of the existing super-large integrated refining base
worldwide and complete upstream and downstream facilities. At present, the main products are shown in the
following figure:
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Note: products marked by dotted line / dotted box are products under the plan.
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(2) Management measures
Economic recovery was a wave-like process of development amid twists and turns. With a complete
industrial chain, China is a major country in the petrochemical industry in the world, has a large petrochemical
market and boasts huge development resilience and potential. During the reporting period, the petrochemical
industry has accelerated its recovery, with production and supply steadily rising and market demand gradually
improving. The Company, under the leadership of the Board of Directors and the management, seized the
opportunity to realize progress in industrial cooperation, production and operation, technological innovation and
team building, and the details are as follows:
1. Widening the circle of friends to ensure the blossoming of industrial cooperation on multiple
fronts
In 2023, Rongsheng Petrochemical's introduction of a strategic investor, Saudi Aramco not only attracted
the attention of the capital market, but also was a landmark foreign cooperation for the Company. We started
comprehensive long-term cooperation with Saudi Aramco and its related companies on crude oil procurement,
raw material supply, chemical sales, refined chemical product sales, crude oil storage and technology sharing.
In addition, we also signed cooperation agreements with Jintang, Taizhou and other places for new projects or
new businesses, with partners covering the government, central enterprises and industry giants, and the map of
cooperation expanded to wider areas at home and abroad, achieving blossoming results on multiple fronts and
bringing benefits to numerous parties.
2. Holding firm the steering wheel to achieve orderly production and operation
In 2023, we strengthened the foundation of management, the production and operation was generally stable,
the scale of main business expanded steadily, and the annual key work achieved tangible results, maintaining
the momentum of healthy development. ZPC processed around 44 million tons of crude oil, achieved the
production target of high capacity operation of refining and ethylene, and improved all production figures
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compared with last year. In 2023, the Company took production protection as the primary goal, fully considered
opportunity cost, imported about 40 million tons of overseas crude oil with reference to the quantity and quality
of resources, and reduced the procurement cost of coal, electricity and natural gas through long term agreements
and other measures. The Company firmly adhered to the market-oriented approach and held weekly meetings to
keep procurement, production and sales in alignment, improving the economic benefits and brand value.
3. Exploring new experimental fields to bear rich fruits in technological innovation
In 2023, a number of technological innovations were realized upstream and downstream of our industry
chain. In the refining segment, the new disproportionation catalyst independently developed by Zhongjin
Petrochemical realized its first industrialized application in ZPC, breaking the foreign technological control. In
the polyester segment, Shengyuan Chemical Fiber was selected to be on the Ministry of Industry and
Information Technology’s list of Outstanding Scenarios for Intelligent Manufacturing in 2023; and 14 scientific
and technological achievements passed the appraisal, reaching the domestic advanced and leading level. In
addition, Rongsheng led the establishment of the green petrochemical technology innovation center in Ningbo,
which provides an important platform for overcoming technical problems in the petrochemical industry and
empowering industrial innovation.
4. Stimulating the vitality to achieve obvious results in team building
In 2023, our team building realized mutual growth between the Company and employees. On the one hand,
the Company and its subsidiaries built a platform for employees to effectively improve their vocational skills
through comprehensive internal training, job training and technical competitions, setting up skill level
recognition centers and carrying out independent recognition of vocational skill levels, so that the employees’
technical ability and comprehensive quality were continuously improved. On the other hand, employees were
also actively enhancing their self-value and using their actions to win honor for the Company. Last year, the
Company boasted both municipal young craftsmen and Asian Games torchbearers, and a number of teams and
individuals from ZPC and Hainan Yisheng also won national honors such as the National May 1st Labor Medal
and the National Workers’ Pioneer, which made Rongsheng’s brand shine brighter.
(3) Operation synergy
1. Controlling shareholder
Rongsheng Holdings ranks 136th among the top 500 enterprises in the world, 40th among the top 500
Chinese enterprises and 5th among the top 500 private enterprises in China. At present, the Group has listed
companies such as Rongsheng Petrochemical (stock code: 002493) and Ningbo United (stock code: 600051),
with its business involving oil and gas upstream and trading, coal, logistics, equipment manufacturing, process
engineering technology, real estate, venture capital and other fields; Rongtong Logistics, a subsidiary is a
national AAAA-level logistics enterprise, which has a mature and stable carrier cooperation operation platform;
Suzhou Shenghui Equipment Co., Ltd., a holding company, specializes in the design, manufacture and sales of
pressure vessels, cryogenic equipment, spherical tanks and marine equipment; Shanghai Huanqiu Engineering
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Co., Ltd., a joint stock company of the Company, has extremely rich experience in engineering EPC; A number
of projects invested by Rongsheng Venture Capital not only achieved good economic benefits, but also
promoted the synergy of the industrial chain; In addition, a number of other investments are also constantly
advancing.
2. Strategic investor
Rongsheng Petrochemical and Saudi Aramco form the upstream and downstream in the industry and
maintain a good foundation for cooperation. The two companies will carry out all-round consultations and
cooperation, such as: ① Frontier technology sharing cooperation: The two companies will discuss earnestly to
complement each other's technologies through their advantages, jointly develop new technologies, processes
and equipment to meet the future market demand, and promote them on the market, and at the same time share
the necessary resources for research and development; ② Stable crude oil supply guarantee: Saudi Aramco
supplies ZPC with high-quality crude oil with the promised quantity of 480,000 barrels per day, and provides
the Company with production raw materials such as naphtha, mixed xylene and straight-run fuel; ③ Interest-
free purchase credit line: A credit line with a term of 20 years and an amount of USD 800 million, which can be
increased during the cooperation period, will be provided, which is conducive to improving the capital
utilization efficiency of ZPC and will have a positive impact on improving its profitability; ④ Flexible
cooperation in crude oil storage: the two sides will discuss friendly about the Company provides Saudi Aramco
with crude oil storage tanks and related facilities in Zhoushan, and Saudi Aramco maintains a crude oil
inventory of not less than 1.5 million metric tons, which is helpful to ensure the crude oil supply of ZPC; ⑤
Broad global sales channels: Relying on overseas sales channels of Saudi Aramco, the Company can further
expand the international market of its products and deepen strategic cooperation with overseas customers.
Similarly, with the Company's rich resources accumulated over the years, Saudi Aramco can also quickly enter
the relevant international and domestic markets.
3. Refining and chemical sector
3.1. ZPC
With the goal of building a "private, green, international, trillion-level and flagship" base, ZPC's refining
and chemical integration project has been planned and unified at one time. At present, it has formed a world-
class refining and chemical integration base with a processing capacity of 40 million tons/year for oil refining,
8.8 million tons/year for paraxylene and 4.2 million tons/year for ethylene, among which the single scale for
hydrogenation, reforming and PX is the largest in the world. The project is designed to maximize the refining
and chemical integration, provide high-quality raw materials for downstream chemical devices, maximize the
production of aromatic hydrocarbons (PX) and chemical products, and minimize the output of fuel. The yield of
fuel is lower than the industry average, with outstanding effect of reducing oil and increasing chemical.
Meanwhile, through the optimal utilization of energy resources such as steam and water, and full use of the low-
temperature waste heat of the device, it builds the world's largest thermal seawater desalination device to realize
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energy saving and emission reduction. The refining and chemical integration rate of the project ranks first in the
world, far higher than the average level of petrochemical industry integration in China, and the scale and
integration degree of the base are at a leading position in the world.
ZPC's crude oil has strong adaptability, and can be stored according to light, medium, heavy and acid,
transported separately and refined separately. Combined with blending means, it can process 80%-90% of the
global crude oil, which greatly enhances its adaptability to oil price fluctuations and offers obvious advantages
compared with other domestic leading enterprises. It has flexible product structure, and mature and reliable
technology, and its main device scale and technical and economic indicators represent the most advanced level
worldwide. As a result of one-time overall planning, oil refining, aromatic hydrocarbon and ethylene fully
demonstrate the concept of "molecular oil refining" and make the best use of the material. All olefins are deeply
processed into chemicals with high import dependence, which makes them have stronger ability to cope with
the industry cycle.
As the upstream industry of the polyester industry chain, ZPC has successfully established the last link of
the whole process from a drop of oil to a piece of fiber for the Company, and formed the great advantage of
upstream and downstream integration of the polyester industry. ZPC is located in Zhoushan, a part of East
China, which is the main consumer of terminal chemicals. The Yangtze River Delta contains about 70% of
China's production capacity of plastics and chemical fibers, with obvious regional advantages. 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.
3.2. Zhongjin Petrochemical
Zhongjin Project, which was put into operation in August 2015, is an aromatic hydrocarbon combined
plant currently in service with leading single scale in the world. This project pioneered the process of making
aromatic hydrocarbon products with fuel oil (cheaper than naphtha) as raw material, and adopted a new
technical route, which can solve the shortage of global naphtha supply, greatly save the procurement cost of raw
materials, introduce the concept of "circular economy", and innovatively use the by-product hydrogen to
process fuel oil into naphtha.
The new disproportionation catalyst jointly developed by Zhongjin Petrochemical and Tongji University
has been successfully applied for the first time in ZPC 2# disproportionation unit (3.5 million tons/year). The
catalyst has the excellent characteristics of "three highs", namely high space velocity, high yield and high
conversion and utilization rate of heavy aromatic hydrocarbon, and has good operation stability, whose
comprehensive performance and technical indicators have reached the advanced level in the world at present,
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realizing import substitution, which reflects the staged progress of the Company's scientific research and
innovation ability and level, and is of great significance for continuously improving the technical level of
production equipment, improving the conversion and utilization efficiency of raw materials, reducing
consumption and production costs, and realizing the aromatic hydrocarbon production from large to strong and
achieving green efficiency.
3.3. 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 ZPC
and Zhongjin, to achieve the value-added and efficiency increase in raw materials of Zhongjin and ZPC. At
present, the project has started construction and related work is progressing in an orderly manner.
3.4. 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.
4. PTA sector
Since the establishment of the first private PTA production line in 2002, the Company has insisted on
independent innovation, successively developed and built the first domestic PTA process package and
production equipment with independent intellectual property rights, and realized the first domestic application
of core equipment such as large-scale oxidation reactors and high-speed pumps, which changed the long-term
dependence of China's PTA industry on the introduction of complete sets of foreign patented technology, and
promoted a large number of domestic equipment manufacturers to achieve leap-forward development. At the
same time, we have continuously carried out technical transformation on existing equipment to improve
production efficiency and product quality, and at the same time continuously optimized raw material
consumption to ensure efficient use of resources. Meanwhile, the Company has steadily promoted the launch of
new production capacity, on the one hand, to meet the growing market demand, and on the other hand, to
stabilize the Company's leading position in the polyester industry.
5. 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.
Yongsheng Technology's 250,000-ton functional polyester film expansion project has been successfully put into
production, and the company's annual polyester film production capacity has reached 430,000 tons, ranking the
top four in China. The Company's PTA production enterprises make full use of the advantages of the
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Company's complete industrial chain integration to continuously tap the potential and increase benefits to
produce polyester bottle chips. At present, its production capacity ranks first in China, with part of PTA
production capacity consumed locally, which enhances the competitiveness of the enterprise and improve the
economic benefits. 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.
2. Income and cost
(1) The composition of operating revenue
Unit: RMB
2023 2022 Year-on-
year
Proportion in Proportion in increase
Amount Amount
operating income operating income (decrease)
Total operating
325,111,614,268.09 100% 289,094,841,612.76 100% 12.46%
income
By industry
Petrochemical
296,851,027,280.87 91.31% 268,236,787,548.52 92.79% 10.67%
industry
Polyester
chemical fiber 14,717,875,220.67 4.53% 14,641,039,125.46 5.06% 0.52%
industry
Trade and
13,542,711,766.55 4.16% 6,217,014,938.78 2.15% 117.83%
others
By product
Oil refining
121,884,564,630.35 37.49% 103,841,990,910.56 35.92% 17.38%
products
Chemical
121,776,659,403.66 37.46% 113,898,786,080.29 39.40% 6.92%
products
PTA 53,189,803,246.86 16.36% 50,496,010,557.67 17.47% 5.33%
Polyester
chemical fiber 14,717,875,220.67 4.53% 14,641,039,125.46 5.06% 0.52%
film
Trade and
13,542,711,766.55 4.16% 6,217,014,938.78 2.15% 117.83%
others
By region
China 276,231,426,885.63 84.97% 239,055,001,192.12 82.69% 15.55%
Overseas 48,880,187,382.46 15.03% 50,039,840,420.64 17.31% -2.32%
(2) Industry, product, region and sales mode accounting for more than 10% of the Company's operating
revenue or operating profit
Applicable □Not applicable
Unit: RMB
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Year-on-
Year-on-year Year-on-year
year
Gross increase increase
increase
Operating revenue Operating cost profit (decrease) in (decrease) in
(decrease) in
margin operating operating
gross profit
revenue cost
margin
By industry
Petrochemical
296,851,027,280.87 260,117,762,693.46 12.37% 10.67% 9.29% 1.11%
industry
Polyester
chemical fiber 14,717,875,220.67 14,245,686,777.56 3.21% 0.52% 0.54% -0.02%
industry
Trade and others 13,542,711,766.55 13,395,436,226.28 1.09% 117.83% 136.53% -7.82%
By product
Oil refining
121,884,564,630.35 97,185,773,925.13 20.26% 17.38% 14.36% 2.10%
products
Chemical
121,776,659,403.66 109,402,218,957.65 10.16% 6.92% 7.18% -0.22%
products
PTA 53,189,803,246.86 53,529,769,810.68 -0.64% 5.33% 5.06% 0.26%
Polyester
chemical fiber 14,717,875,220.67 14,245,686,777.56 3.21% 0.52% 0.54% -0.02%
film
Trade and others 13,542,711,766.55 13,395,436,226.28 1.09% 117.83% 136.53% -7.82%
By region
China 276,231,426,885.63 240,147,860,944.59 13.06% 15.55% 15.14% 0.31%
Overseas 48,880,187,382.46 47,611,024,752.71 2.60% -2.32% -3.36% 1.05%
If the statistical caliber of the Company’s main business data is adjusted in the reporting period, the Company’s
main business data adjusted by the caliber at the end of the reporting period for the latest year
□Applicable Not applicable
Operating revenue or net profit generated from overseas operations accounted for more than 10% of the
Company's audited operating revenue or net profit in the most recent fiscal year
□Yes No
(3) Whether revenue from physical sales is higher than service revenue
Yes □No
Year-on-year
Industry Item Unit 2023 2022 increase
(decrease)
Sales quantity Ton 49,168,141.42 41,122,601.07 19.56%
Petrochemical Production
Ton 55,993,404.94 48,231,016.23 16.09%
industry quantity
Inventory Ton 1,116,062.63 1,535,781.69 -27.33%
Sales quantity Ton 2,114,331.59 1,985,632.47 6.48%
Polyester chemical Production
Ton 3,480,230.85 3,363,954.31 3.46%
fiber industry quantity
Inventory Ton 135,913.59 119,462.01 13.77%
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Description of reasons for relevant data increasing/decreasing by more than 30% year-on-year
□Applicable Not applicable
(4) Performance of major sales and procurement contracts signed by the company as of the current
reporting period
□Applicable Not applicable
(5) Composition of operating costs
Industry and product categories
Unit: RMB
2023 2022
Proportio Proportion Year-on-year
Industry Item n in in increase
Amount Amount (decrease)
operating operating
cost cost
Petrochemical
Raw materials 239,198,623,632.96 91.96% 219,310,111,251.40 92.14% -0.18%
industry
Petrochemical
Labor wage 1,624,611,209.04 0.62% 1,726,845,598.87 0.73% -0.11%
industry
Petrochemical
Depreciation 9,904,752,215.65 3.81% 8,207,898,392.30 3.45% 0.36%
industry
Petrochemical
Energy 8,186,332,743.25 3.15% 7,730,464,344.88 3.25% -0.10%
industry
Petrochemical
Others 1,203,442,892.56 0.46% 1,034,050,204.02 0.43% 0.03%
industry
Total 260,117,762,693.46 100.00% 238,009,369,791.46 100.00% 0.00%
Polyester
chemical fiber Raw materials 12,827,143,217.21 90.04% 12,756,545,578.83 90.03% 0.01%
industry
Polyester
chemical fiber Labor wage 290,364,973.60 2.04% 270,512,439.97 1.91% 0.13%
industry
Polyester
chemical fiber Depreciation 213,161,372.30 1.50% 199,686,441.04 1.41% 0.09%
industry
Polyester
chemical fiber Energy 717,988,984.46 5.04% 719,003,959.71 5.07% -0.03%
industry
Polyester
chemical fiber Others 197,028,229.99 1.38% 222,725,728.97 1.57% -0.19%
industry
Total 14,245,686,777.56 100.00% 14,168,474,148.53 100.00% 0.00%
Unit: RMB
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2023 2022
Proportio Proportion Year-on-year
Product
Item n in in increase
categories Amount Amount
operating operating (decrease)
cost cost
Oil refining
Raw materials 88,386,630,452.32 90.95% 77,785,713,249.72 91.53% -0.58%
products
Oil refining
Labor wage 728,940,877.61 0.75% 754,650,595.88 0.89% -0.14%
products
Oil refining
Depreciation 4,204,103,221.85 4.33% 3,310,628,382.72 3.90% 0.43%
products
Oil refining
Energy 3,497,104,097.06 3.60% 2,934,219,424.57 3.45% 0.15%
products
Oil refining
Others 368,995,276.29 0.38% 196,737,347.99 0.23% 0.15%
products
Total 97,185,773,925.13 100.00% 84,981,949,000.88 100.00% 0.00%
Chemical
Raw materials 99,869,923,999.03 91.29% 93,512,854,749.88 91.61% -0.32%
products
Chemical
Labor wage 813,044,055.81 0.74% 908,477,399.74 0.89% -0.15%
products
Chemical
Depreciation 4,726,636,911.00 4.32% 3,980,431,150.22 3.90% 0.42%
products
Chemical
Energy 3,642,936,514.85 3.33% 3,457,548,082.96 3.39% -0.06%
products
Chemical
Others 349,677,476.96 0.32% 218,777,199.39 0.21% 0.11%
products
Total 109,402,218,957.65 100.00% 102,078,088,582.19 100.00% 0.00%
PTA Raw materials 50,942,069,181.61 95.17% 48,011,543,251.81 94.23% 0.94%
PTA Labor wage 82,626,275.62 0.15% 63,717,603.24 0.13% 0.02%
PTA Depreciation 974,012,082.80 1.82% 916,838,859.36 1.80% 0.02%
PTA Energy 1,046,292,131.34 1.95% 1,338,696,837.36 2.63% -0.68%
PTA Others 484,770,139.31 0.91% 618,535,656.64 1.21% -0.30%
Total 53,529,769,810.68 100.00% 50,949,332,208.40 100.00% 0.00%
Polyester
chemical fiber Raw materials 12,827,143,217.21 90.04% 12,756,545,578.83 90.03% 0.01%
film
Polyester
chemical fiber Labor wage 290,364,973.60 2.04% 270,512,439.97 1.91% 0.13%
film
Polyester
chemical fiber Depreciation 213,161,372.30 1.50% 199,686,441.04 1.41% 0.09%
film
Polyester
chemical fiber Energy 717,988,984.46 5.04% 719,003,959.71 5.07% -0.03%
film
Polyester
chemical fiber Others 197,028,229.99 1.38% 222,725,728.97 1.57% -0.19%
film
Total 14,245,686,777.56 100.00% 14,168,474,148.53 100.00% 0.00%
Note
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Raw material prices decreased year-on-year during the reporting period, and converted fixed assets resulted
in increased depreciation.
(6) Whether the scope of consolidation has changed during the reporting period
Yes □No
1. Increase in combination scope
Company name Acquisition method Date of equity acquisition
Zhoushan ZPC Sales Co., Ltd. Newly established May 25, 2023
Ningbo ZPC Sales Co., Ltd. Newly established December 29, 2023
Zhejiang ZPC Power Generation Co., Ltd. Newly established May 23, 2023
Rongsheng Energy (Zhoushan) Co., Ltd. Newly established November 27, 2023
Zhejiang Rongshen New Materials Co., Ltd. Newly established June 13, 2023
Zhejiang Shengcheng New Materials Co., Ltd. Newly established June 13, 2023
Zhejiang Huiyu New Materials Co., Ltd. Newly established June 13, 2023
2. Decrease in combination scope
Company name Acquisition method Date of disposal
Zhoushan Yushan Petrochemical Engineering
Transfer June 29, 2023
Co., Ltd.
(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) 68,855,328,347.68
Proportion of total sales amount of the top five customers in
21.18%
total annual sales
Proportion of related party sales in total annual sales
2.79%
among the top five customers
Top 5 customers of the Company
Proportion in total annual
S/N Customer Sales amount (RMB)
sales
1 Customer 1 29,763,235,516.92 9.15%
2 Customer 2 11,168,837,606.58 3.44%
3 Customer 3 11,143,354,718.55 3.43%
4 Customer 4 9,086,733,020.38 2.79%
5 Customer 5 7,693,167,485.25 2.37%
Total -- 68,855,328,347.68 21.18%
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Other information of major customers
□Applicable Not applicable
Major suppliers
Total purchase amount of the top five suppliers (RMB) 145,201,004,044.39
Proportion of total purchase amount of the top five
47.01%
suppliers in total annual purchase amount
Proportion of related party purchase amount in total
26.92%
annual purchase amount of the top five suppliers
Top 5 suppliers of the Company
Proportion in total annual
S/N Supplier Purchase amount (RMB)
purchase amount
1 Supplier 1 67,886,291,621.12 21.98%
2 Supplier 2 40,217,422,035.74 13.02%
3 Supplier 3 15,251,114,785.47 4.94%
4 Supplier 4 13,921,099,328.30 4.51%
5 Supplier 5 7,925,076,273.76 2.56%
Total -- 145,201,004,044.39 47.01%
Other information of major suppliers
□Applicable Not applicable
3. Expenses
Unit: RMB
Year-on-year
2023 2022 increase Description of major changes
(decrease)
Selling expenses 160,462,247.93 175,450,628.16 -8.54%
Administrative
908,998,018.22 815,233,609.10 11.50%
expenses
Mainly due to the increase in interest
Financial
8,202,127,726.14 6,030,509,548.75 36.01% expenses of the Company in the current
expenses
period
Mainly due to the increase in the
R&D expenses 6,555,282,352.50 4,367,112,486.97 50.11% Company's R&D expenditure in the
current period
4. R&D investment
Applicable □Not applicable
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Expected impact on
Name of main R&D Project
Project purpose Objectives to be achieved the company's future
project progress
development
(1) The operation cycle of the liquid furnace Reduce the cost of
Research on application (1) Analysis on coking mechanism of cracking furnace; The project reaches 90 days. three agents of the
of DMDS substitute (2) Comparative analysis on using new coking inhibitor and DMDS in has been
(2) The operation cycle of the gas furnace plant and increase the
(coking inhibitor) cracking furnaces with different raw materials. implemented
reaches 60 days. enterprise benefit.
The standard deviation of main constraint
variables is reduced by ≥30% The economic benefit
of aromatic
Development and The utilization rate of advanced controller is
hydrocarbon plant is
application of APC can solve the problems of lag and strong coupling that can not be ≥95%
significantly improved,
intelligent APC solved by conventional PID control, and the operation of the plant can be The PX yield of the target product is increased the labor intensity of
advanced control more stable and the fluctuation can be reduced through predictive The project (calculated by PX output) by ≥0.6% operators is
system to improve PX control; It improves the management level of the plant, enhances the has been
The unit energy consumption is reduced by significantly reduced,
yield and reduce energy competitiveness of the enterprise, promotes the scientific and implemented
consumption of technological progress of the factory, and also creates remarkable ≥1% the misoperation by
personnel is greatly
aromatic hydrocarbon economic and social benefits for the enterprise. The manual operation times is reduced by
≥60% prevented, and the
plant
operation stability of
PID loop automatic control rate (with the plant is improved.
utilization conditions) ≥98%
Research on (1) Add the interconnecting pipeline of the ultra-high pressure steam pipe
interconnection network of 1# and 2# ethylene plants; Reduce the energy
The project Intercommunication and stable pressure is
optimization of ultra- consumption of the
(2) Stably operate the 1# and 2# ethylene plants after the interconnection has been realized for ultra-high pressure steam pipe
high pressure steam device and reduce the
of ultra-high pressure steam pipe network; implemented network of 1# and 2# ethylene plants.
pipe network in 1# and operation cost.
2# ethylene plants (3) Reserve connector for high-end new materials.
Development of Waste
By using forced ventilation, the intake air can be evenly distributed, and Save energy, reduce
Heat Recovery The exhaust gas temperature reaches 85±5℃,
corrosion inhibitors can reduce the sulfur content in fuel gas, reduce Project emissions and enhance
Technology for Super- and the thermal efficiency of the heating
environmental pollution, and improve the combustion efficiency of fuel completed the competitiveness of
large Chemical Process furnace is ≥95%±0.5%
gas. enterprises
Furnace
Development and
The integrated transformation and upgrading project needs to increase the Increase waste
research on purification Nitrogen output: 300,000 Nm3/h; Purity
amount of nitrogen, and nitrogen is required for the subsequent ammonia Delayed nitrogen production by
technology of polluted 99.99%(V); Pressure 0.4Mpa
synthesis and other devices 300,000 Nm3/h
nitrogen
Research and In order to balance the factory-wide steam system of ZPC during the
The project In summer, 504,000 T of low-pressure steam
application of waste peak summer, prevent the waste of low-quality steam, make good use of Reduce coal
has been is recovered, saving standard coal by about
heat recovery and steam cascade, and promote the Company's energy saving and consumption
implemented 48,719 T.
utilization in ZPC consumption reduction.
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Improve the
(1) Set PID loop and determine advanced control scheme; automation and
intelligence level of the
Research on advanced (2) Establish multivariable control model through step test or historical APC utilization rate ≥95%, which reduces the
plant, reduce the
control of ethylene data; Ongoing energy consumption of the plant and the unit
energy consumption of
glycol plant (3 sets) (3) Use advanced control, reduce operation times, stabilize production, consumption of ethylene.
the plant and reduce
save energy and increase efficiency. the unit consumption
of ethylene.
(1) Determine the research scheme for improving the purity of TEG
products;
(2) Discuss the difficulties, details, feasibility and reliability in the Improve the quality of
Research on purity
implementation of the scheme according to the optimized research The project TEG products and
improvement of TEG
scheme; has been The purity of TEG products is ≥99.5%. enhance the
products in 1# ethylene
(3) Carry out data analysis and process research according to the research implemented competitiveness of the
glycol plant
scheme of improving the purity of TEG products to obtain the best enterprise.
process operation control parameters and improve the purity of TEG
products.
Research and
The equipment can run safely, stably, long,
application on selection
Solve the problem of flow deviation caused by unbalanced pressure on fully and properly, the maintenance time can
optimization of diluted Ensure the stable
positive and negative pressure sides due to valve block blockage of Ongoing be shortened by 20 hours/week, the
steam flowmeter for 1# production of the plant.
diluted steam flowmeter. interlocking utilization rate can be 100%, and
ethylene cracking
the automatic control rate can be 100%.
furnace
After removing olefins
from raffinate oil, the
feed requirements of
ethylene cracking unit
can be met, and the
Research on application
one-way operation
of raffinate
cycle of ethylene
hydrogenation The olefin saturation unit of raffinate oil of 3# aromatic hydrocarbon
cracking furnace can
technology to improve extraction plant is upgraded to remove olefins from raffinate oil products The project
Olefin content in hydrogenation products is ≤ be prolonged. When it
the properties of of 3# and 4# aromatic hydrocarbon extraction plants in a centralized way, has been
1% is used as ethylene
ethylene raw materials in order to meet the feed requirements of ethylene cracking unit and implemented
cracking material, it
and prolong the service prolong the one-way operation cycle of ethylene cracking furnace.
will affect the ethylene
life of ethylene
yield of ethylene
cracking furnace
cracking plant and
shorten the one-way
operation cycle of
ethylene cracking
furnace.
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The continuous and
stable operation of
Research and
regeneration unit can
optimization on
After recalculating the outlet pipeline of the regenerative blower, perform make the quality of
complex thermal stress
re-piping, change the existing pipeline layout, to eliminate the pipeline Realize the safe and stable production and reformed oil products
of high-temperature Ongoing
stress, prolong the operation time of the regenerative blower, and finally continuous operation of the plant. reach the standard,
pipeline in regenerative
achieve the goal of long-term stable operation of the regeneration unit achieve higher
system of large-scale
aromatic hydrocarbon
reforming plant
yield, and improve the
Company's benefits.
Technical Development
of C3-C6 Recovery Improve the added
Project Realize the recovery and utilization of heavy
from Fuel Gas in Recover C3-C6 components in the non-condensable gas. value of the product
completed components in the dry gas.
Aromatic Hydrocarbon and recover LPG.
Combination Unit
Under the background
of variable diesel
hydrogenation raw
Research on materials, optimize raw
Optimization of 3# and Improve the yield of heavy naphtha in diesel material matching,
Establish the reaction mechanism model of 3#/4# diesel oil The project
4# 3.5 million tons hydrocracking plant by ≥0.5%, and increase adjust process
hydrocracking plant, and put forward the optimization guidance scheme has been
diesel hydrocracking the aromatic hydrocarbon content of heavy operation, improve the
to guide the production of the unit by using the mechanism model. implemented
units based on naphtha by 1% yield of heavy naphtha,
mechanism model increase the aromatic
hydrocarbon content of
heavy naphtha and
increase the PX output
Improve the quality of
Research on product (1) Analysis of the reasons why the oxazole content in acrylonitrile acrylonitrile products
quality improvement of exceeds the standard; Ongoing Oxazol in acrylonitrile is ≤30mg/kg. and enhance the
1# acrylonitrile plant (2) Research on the application effect of new tray. competitiveness of the
enterprise.
Improve the
(1) Complete the development of complete process package of 1.2 Company's product
Laboratory research on million tons/year ABS plant; output, increase the
industrialization of 1.2
(2) Complete the design of the main body of the project and the Ongoing ABS reaches 300,000 tons/year added value of
million tons/year ABS
construction of the main body of the plant; products and increase
plant
(3) Complete the commissioning and performance test of the plant. market
competitiveness.
Research on internal Solve the problem of internal leakage of spiral plate heat exchanger Ongoing The spiral plate heat exchanger has been Solve the industry
leakage of spiral plate running continuously for one year under harsh problems, improve the
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heat exchanger in working conditions without internal leakage influence of the
slurry bed residue enterprise, and at the
hydrotreating plant and same time, run the
its preventive measures equipment for a long
period, and save
maintenance costs,
which solves the
bottleneck problem of
the device operation,
which is conducive to
the long-term
operation of the plant
with high load.
Development of (1) Carry out benchmarking study of similar plants, feasibility technical
EP548R new product demonstration of product development and production technical reserve; Reduce the production
with high melting and The project
(2) Produce new products with qualified quality and up-to-standard Develop high-melting impact copolymer cost of the plant and
impact has been
performance; EP548R with qualified product quality. increase the market
copolymerization in 3# implemented
(3) Track the customer's usage and make corresponding solutions competitiveness.
and 4# polypropylene
plant according to the problems occurred.
(1) Carry out benchmarking study of similar plants, feasibility technical
New product demonstration of product development and production technical reserve; Improve the economic
development of high (2) Produce new products with qualified quality and up-to-standard Develop high-gloss black ABS special benefit of the plant and
Ongoing
gloss black ABS performance; materials with qualified product quality. increase the market
special materials (3) Track the customer's usage and make corresponding solutions competitiveness.
according to the problems occurred.
(1) Search for advanced catalysts at home and abroad, and select the
catalyst that is more suitable for ZPC cracking furnaces. Improve the
Research on application
environmental
of new denitration (2) Optimize the monitoring means of the supporting denitration system
Ongoing Ammonia consumption is reduced by 10%. protection level of the
catalyst in cracking to ensure more accurate monitoring data.
enterprise and improve
furnace (3) Explore the technical characteristics of new catalysts and optimize the the corporate image.
process operation.
The alkaline liquid system is upgraded from full manual operation to an
automatic control system with DCS control and automatic start/stop, with
Development of the pressure, current, operation signal and abnormal trip signal of the
automatic control pump (of the whole alkaline liquid system) connected to DCS, in order to Improve the level of
Ongoing Realize automatic control
system for alkaline reduce the manual operation time of external operators on site, improve automation.
liquid of acid gas torch the emergency treatment speed, enhance the automation level, and realize
safer and more stable operation of the acid gas system when the plant
needs to discharge acid gas abnormally.
Research and Promote green energy and low-carbon emission reduction, reduce the The project 1. When burning with coal, the boiler Research on adoption
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application of clean total amount of coal used, research on adoption of new combustion has been efficiency is not less than 92.6%. of new combustion
energy technology for technologies to replace existing coal, and improve the diversity of fuel implemented 2. When burning with gas, the boiler technologies to replace
the first 670t/h ultra- use efficiency is not less than 94%. existing coal, and
high pressure improve the diversity
3. The Nox emission at the denitration outlet of fuel use
pulverized coal boiler
in China is not higher than 28 mg/Nm3.
4. 100% load can be switched freely when
coal and gas burning are not stopped.
(1) Determine the optimization research scheme of the preheater burner;
Research on Improve the economic
(2) According to the transformation research scheme, meet the After the preheater burner is reformed, it can
adaptability of benefit of the plant and
requirements of laboratory research conditions, and carry out data Ongoing meet the fuel conditions such as methane,
preheater burner in increase the market
analysis and process research; hydrogen and synthetic gas.
2#SAR plant competitiveness.
(3) Run the preheater safely and stably for a long period.
Research and 1. The designed unit water output is not less Realize that full
than 30,000 tons/day
application of 30000 utilization of the
The project 2. TDS of produced water quality is ≤ 5mg/L
tons/day thermal In order to fully utilize and balance the heat of aromatic hot water in the abundant heat of
has been
desalination project for plant, add a 30,000-ton/day thermal desalination plant. 3. Load regulation 50%— 100% aromatic hot water and
implemented
factory-wide waste heat produce qualified fresh
4. The water production ratio is greater than
utilization 14 water,
2# 4 million tons/year wax oil hydrocracking plant was started in January Replace the catalyst to evaluate the heavy
2022. After continuous optimization of operation adjustment, the yield of naphtha yield, up-to-standard rate and product
heavy naphtha is increased to about 32%, and the designed yield is distribution under different conditions
Research on improving 23.99%. The performance of the existing catalyst has been developed and (proportion and type of secondary oil
The higher the heavy
the yield of heavy utilized to the limit, in order to increase the production of heavy naphtha, blended), and finally reach the heavy naphtha
Ongoing naphtha yield, the
naphtha with 2# wax improve the yield of heavy naphtha and provide high-quality raw yield of more than 35%, and further improve
higher the PX.
oil materials for downstream plants to further increase the production of PX. the heavy naphtha yield by optimizing
By selecting and replacing the catalyst with high selectivity and high operation adjustment, with a target yield of
heavy naphtha yield, research on a new method to improve the yield of 40%; (Secondary oil includes hydrogenated
heavy naphtha. wax oil and slurry bed wax oil);
By evaluating the corrosion applicability of key anti-corrosion plants
Research on corrosion such as atmospheric and vacuum distillation and non-hydrogenation acid
The corrosion leakage incidents of equipment
applicability evaluation water stripping, identify the hidden parts of corrosion and the parts that The project Reduce equipment
and pipelines have been greatly reduced, and
and anti-corrosion need to be monitored, which can optimize the process anti-corrosion has been corrosion and promote
the corrosion of each plant is under dynamic
countermeasures of measures of the plant and the material selection of equipment pipelines in implemented work safety
control.
refinery plant advance, and gradually put an end to equipment corrosion leakage
accidents.
(1) According to the formula table and the production experience of the Reduce the production
Research on application The project
plant, complete the catalyst trial scheme and organize the team to study cost of the plant and
of domestic catalyst for has been Realize the domestic substitution of catalyst.
and train; increase the market
2#HDPE implemented
(2) According to the production schedule, the domestic catalyst is put competitiveness.
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into production to achieve the purpose of cost reduction and benefits
increase.
Research and
implementation of According to the flange temperature, pressure, leakiness degree and the
Reduce the leakage of
classification harmfulness of leaked medium, the sealing surface of flange is classified. Solve the problem of preventing leakage of
key parts of the plant
management of flange For different levels of flanges, targeted management shall be carried out high-risk flanges on site, and ensure that the
Ongoing and ensure the long-
sealing surface and in daily patrol inspection, overhaul management, fastening methods and plant will not be shut down locally or
term operation of the
leakage prevention fastening responsible persons to ensure that no partial or total shutdown completely due to leakage
plant.
strategy of high-risk of the plant will occur due to leakage.
flange in refining plant
Own the new toluene
disproportionation and
Rongsheng Petrochemical cooperates with Tongji University in the heavy aromatic
research, development and industrialization of new efficient catalysts, transalkylation catalyst
Research and industrial Complete catalyst research and development,
optimization of new disproportionation catalysts, catalyst amplification technology with
application of new The project step-by-step scale-up preparation, industrial
and trial production, industrial side-line test and optimization of reaction independent
aromatic hydrocarbon has been trial production and industrial side-line test,
process conditions, in order to obtain new toluene disproportionation and intellectual property
disproportionation implemented and complete industrial application and
heavy aromatic transalkylation catalyst technology with China's rights and leading level
catalyst performance assessment of the catalyst.
intellectual property rights and leading level, and accelerate the and accelerate the
application process of catalyst industrialization. process of industrial
application of the
catalyst.
(1) Carry out benchmarking study of similar plants, feasibility technical
Development of demonstration of product development and production technical reserve; Improve the economic
HP525J new products The project
(2) Produce new products with qualified quality and up-to-standard Develop film material HP525J with qualified benefit of the plant and
of 3# and 4# has been
performance; product quality. increase the market
polypropylene film implemented
(3) Track the customer's usage and make corresponding solutions competitiveness.
materials
according to the problems occurred.
The relative velocity
and shear force
After desulfurization and liquid removal, the hydrocracked low-fraction between gas and liquid
gas is sent to the PSA plant for use as raw material. Because the low- S/N Item Indicators Test method are increased, and the
Development of effective phase
fraction gas desulfurization tower uses amine liquid (MDEA) as the 1 Detection tube method with NH4 ≤1
hydrodesulfurization boundary area and
desulfurizer, the desulfurized low-fraction gas will enter the PSA plant
low gas fraction and 2 Detection tube method with water content mass transfer
through the foam breaker driven by high-speed airflow, and the trace Ongoing
high efficiency
ammonia in the amine liquid and low-fraction gas will react with the ≤50 coefficient are
deamination 3 Detection tube method with chlorine content increased, so that the
trace chlorine carried in reforming hydrogen to form ammonium salt
technology ≤1 mass transfer
crystals to block the adsorbent, which will affect the effective capacity
and surface activity of the adsorbent. efficiency is high, the
equipment volume is
small, and it simple
structure in structure,
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with no internal
moving parts but wide
application range, self-
cleaning, and free of
blockage and scaling.
Break through the
Determine the corrosion mechanism and influencing factors of pipeline bottleneck of long-
Research on corrosion equipment in vacuum-pumping system; According to the laboratory term stable operation
The project Catalyst output is 4 kettles/day; Road
of vacuum system in research, carry out data analysis and corrosion research, optimize the of catalyst preparation
has been equipment without abnormal leakage, running
catalyst preparation operation scheme of the system, and formulate control measures to unit and realize self-
implemented time of not less than 6 months;
unit prevent the vacuum-pumping system from corrosion leakage causing sufficiency of catalyst
system shutdown. in slurry bed residue
hydrogenation plant
Complete the preparation of corrosion control
manuals for atmospheric and vacuum
distillation, hydrocracking and catalytic
Research on cracking plants based on corrosion loops. The Further improve the
compilation method of divided corrosion loops cover 100% of the comprehensive
(1) Division method of corrosion loop; The project
corrosion control main processes of the three plants, and the technical level of the
has been
manual for refining and (2) Classification method of corrosion risk. corrosion risk classification covers 100% of plant and stabilize the
implemented
chemical plant based the corrosion loops, and the suggestions for stable operation of the
on corrosion loop process corrosion protection, equipment plant
corrosion protection and corrosion monitoring
and testing of each corrosion loop are
determined.
Research on quick (1) Quick-opening blind plate with safe self-locking function; The project Reduce maintenance
blind plate of coke The coke blowing system uses a quick blind
(2) All gaskets need not be removed, and the structure and parts of the has been times and improve
blowing system in plate to realize the switching process.
blind plate plant can be quickly self-locked to realize online replacement. implemented automation level.
cracking furnace
After adaptive transformation, the treatment
The sulfur recovery unit adopts oxygen-enriched combustion technology load of the unit can be increased to 160,000
Research and Further improve the
to realize the 8 sets of 1# and 2# combined 130,000 tons/year sulfur tons/year, the maximum operating flexibility
application of oxygen- processing capacity of
recovery units. Under the premise that the existing equipment is not The project can reach 110%, the total sulfur recovery rate
enriched combustion the unit and improve
greatly changed, the oxygen content of the inlet air is increased to 28%, has been of the unit is over 99.95%, and the product
process in sulfur the environmental
and the gas flow rate of the unit is reduced, so that the capacity of a implemented liquid sulfur quality meets the indicator
combined recovery protection level of the
single sulfur unit can reach 160,000 tons/year, and the maximum requirements of national standard
plant enterprise
operating flexibility can reach 110% GB/T2449.2-2015 for excellent products, and
meets the expected requirements
Research and The project Reduce equipment
Select the parts of the equipment with different corrosion mechanisms, The number of sudden equipment corrosion
implementation of has been corrosion and promote
and measure the thickness by pulsed eddy-current testing and fixed-point leaks in oil refining plants has been greatly
pulsed eddy-current implemented work safety
thickness measurement respectively, and compare and summarize the reduced, and the corrosion of each plant 'is
testing technology for
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thickness measurement application effects through equipment disassembly and inspection under dynamic controlled management
applied to anticorrosion
thickness measurement
Enrich the Company's
Research on (1) Development of the process package of 300,000 tons/year vinyl product categories,
industrialization of acetate plant; The output of vinyl acetate reaches 300,000 improve the added
Ongoing
300,000 tons/year vinyl (2) Engineering design and industrial plant construction; tons/year value of products and
acetate plant (3) Research on process production optimization. increase market
competitiveness.
Development of Deep Save energy, reduce
To deeply desulfurize the dry gas and liquefied gas, reduce the
Desulfurization Project Total sulfur removal of purified dry gas to emissions and enhance
temperature of the exhaust gas of the heating furnace and improve the
Technology for Light completed 5mg/m the competitiveness of
thermal efficiency of the heating furnace.
Hydrocarbon enterprises
Research on storage (1) Adjust the best ratio of steam and tar content in coke tank. Improve the quality of
and external
(2) Optimize the external heat transfer medium and flexibly adjust the Control the temperature of ethylene tar and ethylene tar products
optimization of Ongoing
external temperature of tar. increase it to the slurry bed process. and increase economic
ethylene tar products in
(3) After technical transformation, send tar to slurry bed as raw material. benefits.
1# ethylene plant
(1) Carry out real-time prediction of bed
temperature and bed temperature rise of
cracking reactor in hydrotreating unit, timely
detect abnormal temperature rise and give
warning, and improve the stability of bed
temperature and bed temperature rise through
Use the industrial big data system combining big data analysis, machine intelligent control strategy;
Temperature prediction,
learning, process mechanism and manual experience, and adopt the mode Improve the reliability
warning and intelligent (2) Realize 3D display of the temperature field
of "prediction+warning+visual temperature field" to prevent the Ongoing of plant operation
control project of in the cracking reactor of the hydroupgrading
occurrence of temperature runaway in advance and ensure work safety safety
hydroupgrading reactor plant, and improve the sensitivity of artificial
and smooth operation of the plant
reaction to temperature;
(3) Realize the online real-time statistics of
plant operation indicators and key production
indicators, reduce the labor intensity of
manual calculation and improve the sensitivity
of labor to production conditions;
Research on optimizing After the
heat exchange process demonstratio After modification, the final temperature of
and improving heat By optimizing and studying the heat exchange process of the device, n of the the unit after heat exchange is increased by
exchange final increase the final temperature of the unit after heat exchange by more project None
more than 5°C, and the load of the heating
temperature in 2# than 5°C scheme is furnace is reduced by 5-6MW
atmospheric and completed,
vacuum distillation unit the research
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is terminated.
(1) Carry out benchmarking study of similar plants, feasibility technical
Application and demonstration of product development and production technical reserve; Improve the economic
development of film (2) Produce new products with qualified quality and up-to-standard Develop the film material 2426K with benefit of the plant and
Ongoing
material 2426K in performance; qualified quality. increase the market
1#LDPE plant (3) Track the customer's usage and make corresponding solutions competitiveness.
according to the problems occurred.
(1) Carry out benchmarking study of similar plants, feasibility technical
demonstration of product development and production technical reserve; Improve the economic
Product development of
(2) Produce new products with qualified quality and up-to-standard Develop cable material V6110M with benefit of the plant and
cable material V6110M Ongoing
performance; qualified quality. increase the market
for 1#EVA plant
(3) Track the customer's usage and make corresponding solutions competitiveness.
according to the problems occurred.
(1) Carry out benchmarking study of similar plants, feasibility technical
Development and demonstration of product development and production technical reserve; Improve the economic
marketing of cis- (2) Produce new products with qualified products and up-to-standard Develop cis-polybutadiene BR9000 with benefit of the plant and
Ongoing
polybutadiene rubber performance, and well ensure marketing; qualified product quality. increase the market
BR9000 new products (3) Track the customer's usage and make corresponding solutions competitiveness.
according to the problems occurred.
(1) The output of oily sewage is ≤100t/h, and the COD out-of-standard
frequency for oily sewage is ≤5 times/year; Improve the
Research on waste gas
The project environmental
treatment of oily (2) The alarm frequency of the benzene alarm devices GT17111 and Oily sewage is discharged up to the standard,
has been protection level of the
sewage system in 1# GT17112 around the oily sewage buffer pool shall be controlled at ≤10 with no odor on site.
implemented enterprise and improve
ethylene plant times/week;
the corporate image.
(3) The delivery temperature of oily sewage is controlled ≤45°C.
(1) Research on the causes of discharge fluctuation of loss-in-weight Improve the added
Research on quality scale; value of products and
stability of 1#PC Ongoing Polycarbonate quality is stable.
(2) Research on the filling method of additives; increase market
products and solutions
(3) Application of the filling method of new additives. competitiveness.
(1) Carry out benchmarking study of similar plants, feasibility technical
Development of demonstration of product development and production technical reserve; Improve the economic
The project
metallocene film (2) Produce new products with qualified quality and up-to-standard Develop metallocene film material HPR- benefit of the plant and
has been
material HPR-1018MA performance; 1018MA with qualified quality. increase the market
implemented
in 2#FDPE plant (3) Track the customer's usage and make corresponding solutions competitiveness.
according to the problems occurred.
Projects under RMB 40
million (290 in total)
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R&D personnel of the Company
2023 2022 Change
Number of R&D personnel
3,659 2,731 33.98%
(counts)
Proportion of R&D personnel 19.07% 14.05% 5.02%
Educational structure of R&D personnel
Bachelor's Degree 1,770 1,377 28.54%
Master's Degree 106 98 8.16%
Doctor's Degree 6 5 20.00%
Bachelor or below degree 1777 1251 42.05%
Composition of R&D personnel by ages
30 years old and below 477 313 52.40%
30 to 40 years old 2,197 1,656 32.67%
Above 40 years old 985 762 29.27%
R&D investment of the Company
2023 2022 Change
R&D investment (RMB) 6,555,282,352.50 4,367,112,486.97 50.11%
Proportion of R&D investment in
2.02% 1.51% 0.51%
operating income
Capitalized amount of R&D
0.00 0.00 0.00%
investment (RMB)
Proportion of capitalized R&D
0.00% 0.00% 0.00%
investment in R&D investment
Reasons for and effects of significant changes in the composition of the Company's R&D personnel
□Applicable Not applicable
Reasons for significant changes in the proportion of total R&D investment amount in operating revenue compared
with the previous year
□Applicable Not applicable
Reasons for the great changes of R&D investment capitalization rate and description of its rationality
□Applicable Not applicable
5. Cash flow
Unit: RMB
Year-on-year increase
Item 2023 2022
(decrease)
Subtotal of cash inflows for operating
443,339,037,616.94 366,502,609,500.41 20.96%
activities
Subtotal of cash outflows from
415,259,816,108.21 347,444,472,615.05 19.52%
operating activities
Net cash flow from operating
28,079,221,508.73 19,058,136,885.36 47.33%
activities
Subtotal of cash inflows from
3,750,853,990.57 4,751,717,442.06 -21.06%
investing activities
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Subtotal of cash outflows from
36,038,087,908.11 33,718,025,019.38 6.88%
investing activities
Net cash flow from investment
-32,287,233,917.54 -28,966,307,577.32 -11.46%
activities
Subtotal of cash inflows from
159,295,018,590.84 110,301,656,209.13 44.42%
financing activities
Subtotal of cash outflows from
158,092,248,128.26 98,744,982,879.68 60.10%
financing activities
Net cash flow from financing
1,202,770,462.58 11,556,673,329.45 -89.59%
activities
Net increase in cash and cash
-3,972,424,706.25 1,120,442,159.10 -454.54%
equivalents
Description of main influencing factors of significant year-on-year changes in relevant data
Applicable □Not applicable
1. Net cash flows from operating activities amounted to RMB 28,079 million for the year, representing an
increase of approximately RMB 9,021 million as compared to the previous year, which was mainly due to the
increase in net cash receipts from sales of the Company's products and procurement of raw materials during the
period.
2. The net cash flows from the Company's financing activities amounted to RMB 1,203 million for the year, a
decrease of approximately RMB 10,354 million compared with the previous year, which was mainly due to the
Company's higher cash payments on maturing notes during the period.
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:
Applicable □Not applicable
The reasons for the significant difference between the Company's cash flows from operating activities during
the reporting period and the net profit for the year are described in the supplementary information to the statement
of cash flows in the Company's annual auditor's report.
Ⅴ. Non-core Business Analysis
Applicable □Not applicable
Unit: RMB
Proportion in total Whether it is
Amount Cause description
profit sustainable
Mainly investment income from joint
Investment income 460,034,533.27 29.63% No
ventures of the Company
Profit (loss) from
155,886,267.94 10.04% Mainly due to investments in futures No
fair value change
Asset impairment Mainly due to provision for decline in
-121,513,148.98 -7.83% No
loss value of inventories
Non-operating
2,956,271.70 0.19% Mainly compensation income No
income
Non-operating Mainly the loss of scrap of fixed
10,662,129.76 0.69% No
expenses assets and external donations
Income from asset Mainly the income from disposal of
3,706,231.92 0.24% No
disposal fixed assets
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Full Text of 2023 Annual Report
Other income 2,589,241,344.18 166.77% Mainly policy-based VAT deductions No
Credit impairment Mainly formed by the provision for
-105,271,556.51 -6.78% No
loss bad debts of accounts receivable
VI. Analysis of Assets and Liabilities
1. Significant changes in asset composition
Unit: RMB
At the end of 2023 At the beginning of 2023 Increase
Proportion in Proportion in (decrease) of
Amount Amount proportion
total assets total assets
Monetary fund 13,070,255,466.02 3.49% 18,238,774,380.21 5.03% -1.54%
Accounts receivable 4,737,733,703.66 1.26% 7,128,011,047.03 1.97% -0.71%
Contract assets
Inventory 61,733,657,342.07 16.46% 60,689,909,793.94 16.74% -0.28%
Investment real estate 10,395,574.60 0.00% 10,667,020.60 0.00% 0.00%
Long-term equity
9,183,711,444.96 2.45% 8,733,329,806.35 2.41% 0.04%
investment
Fixed assets 219,699,679,397.52 58.60% 222,161,110,736.65 61.27% -2.67%
Construction in progress 41,820,671,070.59 11.15% 26,135,157,629.45 7.21% 3.94%
Right-of-use assets 200,102,141.16 0.05% 225,606,768.34 0.06% -0.01%
Short term loan 44,810,936,767.94 11.95% 26,369,552,400.50 7.27% 4.68%
Contract liabilities 4,421,732,432.83 1.18% 3,734,262,391.81 1.03% 0.15%
Long-term loan 125,179,583,821.18 33.39% 130,962,386,969.29 36.12% -2.73%
Lease liabilities 193,002,312.38 0.05% 213,400,396.45 0.06% -0.01%
Non-current liabilities due
30,286,684,174.81 8.08% 20,461,387,778.93 5.64% 2.44%
within one year
Overseas assets account for a relatively high proportion
□Applicable Not applicable
2. Assets and liabilities measured at fair value
Applicable □Not applicable
Unit: RMB
Profit
Amoun and loss Impairme Purchas
Accumulate Sales
t at the from nt e Amount
d fair value amount Other
beginni changes accrued amount at the end
Item changes in the chang
ng of in fair in the in the of the
recognized current es
the value for current current period
in equity period
period the period period
period
Financial assets
1. Financial assets held for
188,283 310,087,42
trading (excluding
,362.49 9.45
derivative financial assets)
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Full Text of 2023 Annual Report
188,283 310,087,42
Total above
,362.49 9.45
588,769 623,298,74
Financial liabilities
,711.55 1.33
Whether there were significant changes in the measurement attributes of the Company’s major assets during the
reporting period
□Yes No
3. Restrictions on rights of assets at the end of the reporting period
Carrying value at the end of 2023
Item Reasons for restrictions
(yuan)
Issue letters of credit, bills, letters of guarantee,
Monetary fund 1,583,400,368.50
borrowings and other deposits
Accounts receivable financing 263,131.23 Issue bill pledge
Fixed assets 226,875,011,143.49 Bank loan mortgage, letter of credit mortgage
Construction in progress 29,889,674,426.59 Bank loan mortgage, letter of credit mortgage
Intangible assets 5,608,715,198.07 Bank loan mortgage, letter of credit mortgage
Total 263,957,064,267.88
VII. Analysis of Investment
1. Overall
Applicable □Not applicable
Investment amount in the reporting Investment amount in the same period
Variations
period (RMB) of last year (RMB)
9,183,711,444.96 8,733,329,806.35 5.16%
2. Significant equity investments acquired during the reporting period
□Applicable Not applicable
3. Major ongoing non-equity investments during the reporting period
□Applicable Not applicable
4. Investment in financial assets
(1) Securities investment
□Applicable Not applicable
There was no investment in securities during the reporting period.
(2) Investment in derivatives
□Applicable Not applicable
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Full Text of 2023 Annual Report
The Company had no derivatives investment during the reporting period.
5. Use of the raised funds
□Applicable Not applicable
The Company had no use of the raised funds during the reporting period.
VIII. Sales of Major Assets and Equities
1. Sales of major assets
□Applicable Not applicable
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
Applicable □Not applicable
Main subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit
Unit：RMB 10,000
Register Operatin
Compan Compa Total Net Operatin Net
Main business ed g
y name ny type assets assets g profit profit
capital revenue
Production, sales, storage
and transportation of
petroleum products, import
Subsidia and export trade of crude 5,580,00 29,806,70 9,346,079 26,019,95 164,359.4 136,685.4
ZPC
ry oil, sales of petrochemical 0 7.14 .33 8.18 6 8
raw and auxiliary materials
and equipment and their
parts and components.
Shengyua
Production and sales of
n Subsidia 672,925.7 217,168.4 393,767.4
polyester chips and 200,000 8,674.03 10,375.46
Chemical ry 2 9 3
polyester filaments
Fiber
Zhongjin Production and sales of
Subsidia 2,532,663 687,052.8 2,165,763
Petroche chemical products and 600,000 5,357.94 3,857.37
ry .34 5 .10
mical petroleum products
Yisheng Project investment,
Subsidia 1,621,638 770,014.2 3,008,139
Investme domestic trade, import and 201,800 396.19 5,756.78
ry .48 6 .14
nt export of goods
Production and sales of
Yisheng Subsidia 1,457,182 605,765.8 3,008,139 - -
PTA and polyester bottle 245,645
Dahua ry .57 5 .03 18,268.15 12,895.37
chips
Yisheng
Subsidia Production and sales of 1,193,989 229,199.3 3,438,987 - -
New 300,000
ry PTA .45 9 .61 78,430.39 56,744.88
Materials
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Full Text of 2023 Annual Report
Joint
USD
Zhejiang stock Production and sales of 1,963,632 897,894.3 2,259,138
514,447, 4,569.14 2,781.26
Yisheng compan PTA and PIA .89 3 .29
100
y
Joint
Production and sales of
Hainan stock 1,688,635 678,236.3 1,799,579
PTA and polyester bottle 458,000 40,631.14 36,436.78
Yisheng compan .22 9 .10
chips
y
Acquisition and disposal of subsidiaries during the reporting period
□Applicable Not applicable
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 55.8 billion. By
the end of 2023, the company had total assets of RMB 298,067.07 million and net assets of RMB 93,460.79
million; In 2023, the company achieved an operating revenue of RMB 260,199.58 million and a net profit of
RMB 1,366.85 million.
(2) 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 2,000,000,000. By the end of 2023, the company had total assets of RMB
6,729.26 million and net assets of RMB 2,171.68 million; In 2023, the company achieved an operating revenue of
RMB 3,937.67 million and a net profit of RMB 103.75 million.
(3) 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 6,000,000,000. By the end of 2023, the company had total assets of RMB 25,326.63
million and net assets of RMB 6,870.53 million; In 2023, the company achieved an operating revenue of RMB
21,657.63 million and a net profit of RMB 38.57 million.
(4) 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 2023, the company had total assets of RMB 16,216.38 million and net assets of RMB
7,700.14 million; In 2023, the company achieved an operating revenue of RMB 30,081.39 million and a net profit
of RMB 57.57 million.
(5) 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. As of the end of 2023, the company had total assets of RMB14,571.83 million and net assets of
RMB6,057.66 million; in 2023, the company realized operating income of RMB30,081.39 million and net profit
53 / 269
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of RMB-128.95 million.
(6) 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 2023, the company had total assets of RMB 11,939.89 million and net
assets of RMB 2,291.99 million; In 2023, the company achieved an operating revenue of RMB 34,389.88 million
and a net profit of RMB -567.45 million.
(7) Zhejiang Yisheng Petrochemical Co., Ltd.
Zhejiang Yisheng Petrochemical Co., Ltd. is mainly engaged in production and sales of PTA and PIA.
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 2023, the company had total assets of RMB 19,636.33 million and net
assets of RMB 8,978.94 million; In 2023, the company achieved an operating revenue of RMB 22,591.38 million
and a net profit of RMB 27.81 million.
(8) 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 2023,
the company had total assets of RMB 16,886.35 million and net assets of RMB 6,782.36 million; In 2023, the
company achieved an operating revenue of RMB 17,995.79 million and a net profit of RMB 364.37 million.
X. Structured Entities Controlled by the Company
□Applicable Not applicable
XI. Prospect for the Company's Future Development
In 2024, the market demand has shown signs of recovery and will further improve in the future, and the
national, provincial and municipal levels have introduced relevant policies to support the development of
enterprises and stabilize the economy, and we believe that opportunities abound for the development of the
Company. Under the leadership of the Board of Directors and the management, we will implement the relevant
work in accordance with the established guidelines to ensure the stable release of benefits from existing projects
and the smooth implementation of new projects.
(I) Business plan
1. Reviewing the situation to draw up a road map for strategic development
The year 2024 is the 75th anniversary of the founding of China, and also a key year for the 14th Five-Year
Plan to set targets and tasks. It is a year full of challenges, hopes and opportunities for innovation. From the
current development situation of the industry, it can be seen that the current economy of China’s petroleum and
chemical industry is in a critical period of stabilization and recovery, shift in driving forces and high-quality
development to build a solid foundation.
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The central economic work conference clearly states that it is imperative to deepen the supply-side
structural reform and focus on expanding effective demand synergy. Therefore, we should pay close attention to
the latest developments of the external situation, keep a close eye on the latest policies issued by the state and
local governments and changes in market conditions, draw a road map and issue a mission statement, flexibly
adjust production and marketing strategies under the state of normal business operations, and do a good job of
timely risk prevention and control so as to seize the trends and opportunities with excellent strategic vision and
win the initiative in market competition.
2. Grasping both the internal and the external to ensure sound operation and development
Rongsheng’s integrated industrial chain layout has a strong foundation, and the layout in the field of high-
end petrochemicals and new materials has been comprehensively carried out. Under the constraints of “dual-
control” and “dual-carbon”, accelerating the development of high-end petrochemicals and new chemical
materials is a general trend. We will always focus on the core task of enterprise development, coordinate
production, operation and project construction, do a good job in internal mechanism control and external risk
prevention and control, and actively seize the development opportunities to help the Company achieve high-
quality development.
At the beginning of the new year, we released Announcement on the Signing of a Memorandum of
Understanding with Saudi Arabian Oil Company and Announcement on Investment and Construction of Jintang
New Materials Project. The implementation of these major projects requires us to take into account both the
internal and the external, and conduct scientific planning. While accelerating the advancement of investment
projects, we must always pay attention to the prevention and control of risk so as to have a deep understanding
of the situation and take appropriate actions when necessary.
3. Using innovation to drive scientific research and development
Innovation is the primary driving force of development. At present, a new round of scientific and
technological revolution and industrial transformations are developing rapidly and new technologies, new
products and new forms of business are constantly emerging. We have to realize that the future of industrial
science and technology innovation is like a running race that waits for no one, which requires us to be ahead of
the others and seize the first opportunity, as the first mover is often easier to gain a competitive edge.
We will go further to promote the deep integration of industry, academia, research and application,
accelerate the R&D and innovation of high-end new materials, focus on the “stranglehold” and sophisticated
areas, speed up the adjustment of industrial structure, tackle the problems in green petrochemical technology,
promote the construction of digital and intelligent innovation and development system, form new productive
forces and build the world’s leading green petrochemical technology innovation platform.
4. Taking concrete actions to cultivate the fertile soil for talents to grow
Talents are the most important resources. Since enterprise development depends on talents, we need to find
talents, use talents and allocate talents with a higher standpoint and wider vision. The Company always sticks to
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safeguarding the rights and interests of employees, providing a healthy working environment for employees,
and opening up the channels for the growth of talents, so that every employee can become the backbone of the
Company’s high-quality development.
On the new journey, we will continue to promote the cultivation of various types of talents, firmly take the
road of independent training of talents, continue to improve the mechanism, build a good platform and cultivate
the fertile soil for the growth of talents, so that the roots of talents can be more developed and one crop after
another of talents can thrive, turning a steady stream of talents into the surging momentum for inexhaustible
development.
(II) Risks the Company may Face
1. Risk from fluctuation of raw material products
As a member of the crude oil industrial chain, the main cost of the Company’s products 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. The Company’s main products are aromatic hydrocarbons, chemicals and oil
products, which are closely related to the national economy and people's livelihood. The industry development
is highly correlated with the prosperity of the national economy, and macroeconomic changes will have a
certain adverse impact on our performance. The Company’s purchasing and marketing team and production
team 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. Foreign currency exchange rate fluctuation risk
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 RMB. 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 the its daily operations. While controlling financial risks, the Company 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.
3. Risk of product overcapacity
With the expansion of domestic refining and chemical integration capacity and the promotion of the
strategy of "reducing oil and increasing chemicals" in recent years, the basic chemical raw materials and general
chemical products in the downstream of refining and chemical industry are characterized by certain
homogenization. With the support of the Company's complete and refined industrial chain platform, the
Company will still be at the left end of the industry cost curve in the future, thus occupying a favorable position
in the market competition. On the other hand, many products in the new materials project planned by the
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Company have less domestic production capacity or even rely entirely on imports, which will bring excess
returns to the Company.
4. Risk of project capital expenditure
Petrochemical industry is a capital-intensive industry with large investment scale and long construction
period. Continued large-scale capital investment will likely increase the level of asset-liability ratio and trigger
cash flow risks. Besides, in the context of overcapacity in the industry and sluggish downstream demand, the
return on invested capital may also be less than expected. After the second phase of ZPC was put into
production, although the Company planned several new materials projects intensively, it has strictly controlled
the pace of investment and construction, adjusted the project content in strict accordance with the market
situation, maintained a reasonable asset-liability ratio, and actively negotiated cooperation with foreign
petrochemical giants such as Saudi Aramco to create a more competitive refining and chemical integration
platform.
Ⅻ. Reception of Research, Communication, Interview and Other Activities during the
Reporting Period
Applicable □Not applicable
Ways of
Reception Object Receptio Main contents discussed and Basic information index of
Date receptio
place type n object materials provided research
n
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XIII. Implementation of the Action Plan of "Double Improvement of Quality and Return”
Whether the Company has disclosed the action plan of "double improvement of quality and return".
Yes □No
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Full Text of 2023 Annual Report
In order to implement the guiding ideology of "activating the capital market and boosting investors'
confidence" put forward at the meeting of the Political Bureau of the CPC Central Committee on July 24, 2023
and "improving the quality and investment value of listed companies, taking more powerful and effective
measures, focusing on stabilizing the market and confidence" put forward at the executive meeting of the State
Council on January 22, 2024, and earnestly protect the interests of all investors, the Company has formulated
the action plan of "double improvement of quality and return" based on its confidence in the future development
prospects of the Company and its recognition of the stock value, and disclosed it on February 29, 2024. Details
are as follows:
1. Insist on serving the country through industry and lead the development of the industry
Rongsheng Petrochemical is one of the globally leading petrochemical enterprises, ranking 7th in the list of
the most valuable brands in global chemical industry in 2023 and 16th in the top 50 global chemical enterprises
in 2023. The Company is firmly putting into practice the “vertical and horizontal strategy”. It has established
seven production bases in Bohai Economic Rim, Yangtze River Delta Economic Circle and Hainan Belt and
Road Economic Circle, forming five industrial chains of polyester, engineering plastics, new energy, high-end
polyolefin and special rubber. It is one of the important producers of polyester, new energy materials,
engineering plastics and high value-added polyolefin in Asia, with the largest production capacity of chemicals
such as PX and PTA in the world. Since listing, the Company's business has developed rapidly, and its
operating income has increased from RMB 15,795,678,900 in 2010 to RMB 325,111,614,300 in 2023, with a
compound growth rate of 26.19%.
On the basis of the existing complete industrial chain, the Company actively arranges products related to
new energy and new materials, and the proportion of related products continues to increase. At the same time,
the Company actively carried out the global layout. In 2023, the Company introduced Saudi Aramco as a
strategic investor. At present, Saudi Aramco holds about 10% of the Company's stake through its fully-owned
affiliate. At the beginning of 2024, the Company signed a Memorandum of Understanding with Saudi Aramco,
and the two sides are discussing further cooperation matters to promote the realization of their strategic goals.
2. Attach importance to R&D investment and drive growth with innovation
The Company keeps up with the forefront of international science and technology, and constantly launches
new technologies and products in clean energy, high-end materials and green development. The Company
upholds a technological research and development pattern driven by both independent innovation and
cooperation. It has established many first-class research and development platforms, including a high-tech
research and development center, a workstation for academicians and experts, an enterprise technology center,
and a post-doctoral science and research workstation. Moreover, it engages in active technology exchanges and
discussions and promotes industry-university-research collaboration to pool resources from universities, the
community, and the Company. With all sectors of society, it jointly promotes its research capability and
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technological advancement and together create an innovative development system that is open, healthy, and
cooperative, where everyone can benefit.
3. Attach importance to shareholders' returns and share development achievements
While paying attention to its own development, the Company also attaches great importance to
shareholders' return. In order to improve and enhance the Company's shareholder return mechanism and
increase the transparency and operability of profit distribution policies, the Company has formulated the
Shareholders' Return Plan for the Next Three Years since its listing, according to the Company Law of People's
Republic of China, the Supervision Guide for Listed Companies No.3-Cash Dividends of Listed Companies and
other laws, regulations and the Articles of Association, and has continuously updated them. Up to now, a total
of 13 cash dividends have been paid, with a total cash dividend of nearly RMB 7.5 billion. In the future, the
Company will continue to coordinate the dynamic balance of corporate development, performance growth and
shareholder return according to its development stage, and realize a "long-term, stable and sustainable"
shareholder value return mechanism.
4. Carry out repurchase by increasing holdings to boost market confidence
Based on the confidence in the Company's future development prospects and the recognition of its long-
term value, the Company and its controlling shareholder actively carry out share repurchase and increase plans
in order to protect the interests of investors, especially small and medium-sized investors, enhance investors'
confidence, promote the reasonable return of the Company's stock price to its long-term intrinsic value, and
promote the Company's stable and sustainable development.
Since the Company repurchased shares for the first time on March 29, 2022, it has implemented three-
phase share repurchase schemes. As of March 31, 2024, the Company have repurchased 552,380,458 shares in
the three repurchase phases, accounting for 5.4553% of the Company's total share capital, with a total turnover
of RMB 6,980,413,936.02 (excluding transaction costs). The details are as follows.
Amount to be
Number of shares Repurchased
Repurchase Repurchase period repurchased (RMB 100
repurchased (shares) amount (RMB)
million)
Phase I 2022.3.29-2022.8.2 136,082,746 10-20 1,998,203,937.31
Phase II 2022.8.18-2023.7.27 147,862,706 10-20 1,989,986,431.34
Phase III 2023.8.28-2024.3.31 268,435,006 15-30 2,992,223,567.37
Total 552,380,458 - 6,980,413,936.02
Rongsheng Holding, the controlling shareholder, intends to implement the shareholding increase plan
within six months from January 19, 2024. The specific start time for implementation is January 22, 2024, and
the increase amount is not less than RMB 1 billion and not more than RMB 2 billion.
At present, the Phase I and Phase II share repurchases have been completed, and the Phase III share
repurchase plan and the controlling shareholder's share increase plan are still in the process of implementation.
For the specific implementation progress, please pay attention to the Company's relevant announcements, and
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the Company will fulfill its information disclosure obligations in a timely manner according to relevant
regulations.
5. Standardize corporate governance and deliver corporate value
The Company strictly abides by the requirements of relevant laws and regulations, constantly improves the
corporate governance structure, establishes and enhances the internal control system, regulates the company's
operation, strives to achieve full coverage of the system, and promotes a more mature construction of the
internal control system. The Company has established a corporate governance structure of "three meetings and
one management", namely the General Meeting of Shareholders, Board of Directors, Board of Supervisors and
Senior Management, which has independent business and operational autonomy and operates independently in
business, assets, personnel, institutions and finance.
The Company strictly abides by the principle of "truthfulness, accuracy, completeness, timeliness and
fairness", constantly improves the effectiveness and transparency of information disclosure, and continuously
presents investors with information on the Company's operations at multiple levels, from multiple angles and in
all directions. At the same time, the Company continuously expands the breadth and depth of investor
communication, and improves the open, fair, transparent and multi-dimensional investor communication
channels, so that investors can understand the Company's core values more clearly and comprehensively and
enhance their confidence in the Company.
In the future, the Company will continue to focus on its main business, adhere to the investor-oriented
principle, continue to practice the "double improvement of quality and return” policy, realize the sustainable
and healthy development of the Company, and strive to make positive contributions to stabilizing the market
and confidence through standardized corporate governance and positive investor returns.
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Section IV Corporate Governance
I. Basic Information of the Company’s 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. The Company 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.
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 five
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.
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3. The Board of Directors and its members
The Company elects directors 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 ten 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 board 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
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Times, Shanghai Securities Journal, and CNINFO (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.
Whether there are any material differences between the actual state of corporate governance and the laws,
administrative regulations, provisions on company governance issued by the China Securities Regulatory
Commission.
□Yes No
There are no material differences between the actual state of corporate governance and the laws, administrative
regulations, provisions on 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 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
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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
For details, please refer to CNINFO
The First Extraordin
(http://www.cninfo.com.cn) Announcement
Extraordinary ary
77.78% April 13, 2023 April 14, 2023 on Resolutions of the First Extraordinary
General Meeting General
General Meeting of Shareholders in 2023
in 2023 Meeting
(Announcement No.: 2023-018)
For details, please refer to CNINFO
Annual (http://www.cninfo.com.cn) Announcement
2022 Annual
General 79.78% May 16, 2023 May 17, 2023 on Resolutions of Annual General Meeting
General Meeting
Meeting of Shareholders in 2022 (Announcement
No.: 2023-038)
For details, please refer to CNINFO
The Second Extraordin
(http://www.cninfo.com.cn) Announcement
Extraordinary ary August 17, August 18,
63.01% on Resolutions of the Second Extraordinary
General Meeting General 2023 2023
General Meeting of Shareholders in 2023
in 2023 Meeting
(Announcement No.: 2023-051)
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For details, please refer to CNINFO
The Third Extraordin
(http://www.cninfo.com.cn) Announcement
Extraordinary ary September 11, September 12,
63.06% on Resolutions of the Third Extraordinary
General Meeting General 2023 2023
General Meeting of Shareholders in 2023
in 2023 Meeting
(Announcement No.: 2023-072)
For details, please refer to CNINFO
The Fourth Extraordin
(http://www.cninfo.com.cn) Announcement
Extraordinary ary November 13, November 14,
63.53% on Resolutions of the Fourth Extraordinary
General Meeting General 2023 2023
General Meeting of Shareholders in 2023
in 2023 Meeting
(Announcement No.: 2023-085)
2. Shareholders of preferred shares with voting rights recovered request to convene an extraordinary
general meeting of shareholders
□Applicable Not applicable
V. Basic Information of the Directors, Supervisors and Senior Management
1. Profile
Number of Number of
End
Shares Shares
Start Date of Date
Name Gender Age Title Status Held at the Held at the
Tenure of
Beginning End
Tenure
(shares) (shares)
Li Shuirong Male 68 Chairman Current April 08, 2021 643,275,000 643,275,000
Alharbi, Mitib
Male 47 Director Current November 13, 2023
Awadh M
Li Yongqing Male 60 Director Current April 08, 2021 96,525,000 96,525,000
Li Caie Female 61 Director Current April 08, 2021
Yu Fengdi Female 56 Director Current April 08, 2021
Director and
Xiang
Male 41 General Current May 26, 2023
Jiongjiong
Manager
Yan Jianmiao Male 59 Director Current May 10, 2019
Shao Yiping Female 61 Director Current May 20, 2021
Zheng
Male 46 Director Current May 10, 2019
Xiaodong
Secretary of
Quan Weiying Female 46 the Board of Current April 29, 2021
Directors
Sun Guoming Male 43 Supervisor Current May 10, 2019
Li Guoqing Male 54 Supervisor Current April 08, 2021 96,525,000 96,525,000
Xu Yongming Male 53 Supervisor Current April 08, 2021
Vice General
Zhou Xianhe Male 49 Current October 25, 2022
Manager
Wang Yafang Female 45 CFO Current May 10, 2019
Total -- -- -- -- -- -- 836,325,000 836,325,000
Whether there was any resignation of directors and supervisors and dismissal of senior management in the
reporting period
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Yes □No
Due to job adjustment, Ms. Quan Weiying no longer serves as a director of the Company.
Changes in directors and senior management of the Company
Applicable □Not applicable
Name Title Type Date Reason
Quan Weiying Director Demission November 13, 2023 Job adjustment.
Elected by the board, deliberated and
Alharbi, Mitib Awadh M Director Elected November 13, 2023 approved by the general meeting of
shareholders
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 President of the China Association of Township and
Village Enterprises, 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. Xiang Jiongjiong: Master’s degree; currently the director and general manager of Rongsheng
Petrochemical Co., Ltd., vice chairman of Zhejiang Rongsheng Holding Group Co., Ltd. and director of
Zhejiang Petroleum and Chemical Co., Ltd.; also the vice chairman of Zheshang General Association of
Enterprises; selected in Forbes “2021 China’s Best CEO List”.
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
currently the Vice Chairman of Zhejiang Rongsheng Holding Group Co., Ltd. and a director of Rongsheng
Petrochemical Co., Ltd.
Mr. Mitib: A Saudi Arabian National, graduated from King Fahd University of Petroleum and Mining in
Saudi Arabia, currently serves as VP of Fuels Business Management at Saudi Arabian Oil Company in Dhahran,
Saudi Arabia. Prior to that he served as President of Aramco Asia in China. Also, he served in various pervious
leading roles such as the head of Aramco Asia Korea Limited, the director of Saudi Aramco’s domestic joint
venture department at Saudi Aramco Headquarter. Additionally, he worked in leadership positions at Motiva
Enterprises LLC, both at the Port Arthur Refinery and in Motiva’s U.S. headquarters in Houston, Texas. Also,
he started his career at Ras Tanura Refinery in Saudi Arabia and completed two years of internship program at
UOP U.S.
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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. 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, and an executive director of the Hangzhou Institute of Certified Public Accountants.
She is currently an independent director of Rongsheng Petrochemical Co. UE Furniture Co., Ltd. and Zhongtian
Service Co., Ltd.
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, 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
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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. Mr. 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, corporate human resource manager He once
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 Secretary of
the Discipline Inspection Commission, 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., the general manager of Zhejiang Yongsheng Technology Co., Ltd. and also the vice
chairman of BOPET Specialized Committee of China Plastic Processing Industry Association.
3. Main work experience of current senior management personnel:
Mr. Xiang Jiongjiong: Master’s degree; currently the director and general manager of Rongsheng
Petrochemical Co., Ltd., vice chairman of Zhejiang Rongsheng Holding Group Co., Ltd. and director of
Zhejiang Petroleum and Chemical Co., Ltd.; also the vice chairman of Zheshang General Association of
Enterprises; selected in Forbes “2021 China’s Best CEO List”.
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; He is currently the General Manager of Zhejiang Shengyuan Chemical Fiber Co., Ltd.
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 secretary of the Board of Directors of Rongsheng
Petrochemical Co., Ltd.
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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
Applicable □Not applicable
Whether receiving
remuneration and
Shareholder End Date
Name Title Start Date of Tenure allowance in
Organization of Tenure
shareholder
organization
Li Shuirong Rongsheng Holding Chairman June 20, 2007 No
Li Yongqing Rongsheng Holding Director June 20, 2007 Yes
Sun Guoming Rongsheng Holding Supervisor May 10, 2019 Yes
Li Guoqing Rongsheng Holding Director June 20, 2007 Yes
Vice
Yu Fengdi Rongsheng Holding May 09, 2017 Yes
President
Vice
Li Caie Rongsheng Holding May 11, 2019 Yes
President
Additional Information None
Office holding in other companies
Applicable □Not applicable
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Whether receiving
Positions held in other Start Date of End Date of remuneration and
Name Name of other units
units Tenure Tenure allowance in other
organizations
Li Shuirong Zhejiang Petroleum & Chemical Co., Ltd. Chairman June 18, 2015 No
Li Shuirong Ningbo Zhongjin Petrochemical Co., Ltd. Chairman April 21, 2009 No
Li Shuirong Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. Director August 01, 2004 No
Li Shuirong Yisheng Dahua Petrochemical Co., Ltd. Chairman December 19, 2005 No
Li Shuirong Dalian Yisheng Investment Co., Ltd. Chairman December 19, 2005 No
Li Shuirong Zhejiang Shengyuan Chemical Fiber Co., Ltd. Chairman June 15, 2010 No
Li Shuirong Zhejiang Derong chemicals Co. Ltd. Director October 2018 No
Li Shuirong Rongsheng New Material (Taizhou) Co., Ltd. Manager, Chairman May 2022 No
Hangzhou Binjiang Shengyuan Real Estate Development
Li Shuirong Supervisor To now No
Co., Ltd.
Li Shuirong Zhejiang Yisheng Petrochemical Co., Ltd. Director December 12, 2002 No
Chairman and General
Li Shuirong Rongsheng (Shanxi) Carbon-based New Material Co., Ltd. August 2021 No
Manager
Chairman and General
Li Shuirong Rongsheng (Shanxi) Coal Industry Co., Ltd. August 2021 No
Manager
Zhejiang Dongjiang Green Petrochemical Technology
Li Shuirong Vice chairman April 2023 No
Innovation Center Co., Ltd.
General manager, executive
Li Shuirong Ningbo Niluoshan New Energy Co., Ltd. July 2018 No
director
Li Shuirong Ningbo United Group Co., Ltd. Chairman, director June 18, 2010 No
Li Shuirong Hangzhou Kaiyuan Century Real Estate Co., Ltd. Director To now No
Li Shuirong Hangzhou Yuanshenghui Enterprise Management Co., Ltd. Director November 2023 No
Li Shuirong Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. Chairman October 2018 No
Li Shuirong Ningbo Hengyi Trading Co., Ltd. Director To now No
Li Shuirong Shanghai Huanqiu Engineering Co., Ltd. Director January 2021 No
Li Shuirong Zhejiang Shengcheng New Materials Co., Ltd. Executive director June 2023 No
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Li Shuirong Zhejiang Rongshen New Materials Co., Ltd. Executive director June 2023 No
Li Shuirong Zhejiang Huiyu New Materials Co., Ltd. Executive director June 2023 No
Li Shuirong Ningbo Qingzhi Chemical Terminal Co., Ltd. Chairman To now No
Li Shuirong Yibin Tianyuan Group Co.,Ltd. Director June 19, 2009 November 24, 2023 No
VP of Fuels Business
Alharbi, Mitib Awadh M Saudi Arabian Oil Company March 10, 2024 Yes
Management
Alharbi, Mitib Awadh M Aramco Asia Korea Limited Representative director September 29, 2020 June 30, 2023 Yes
Alharbi, Mitib Awadh M Aramco Asia Korea Limited Representative director July 01, 2023 No
Alharbi, Mitib Awadh M Aramco Far East (Beijing) Business Services Co., Ltd President July 01, 2023 March 09, 2024 Yes
Alharbi, Mitib Awadh M Aramco Far East (Beijing) Business Services Co., Ltd President March 10, 2024 March 31, 2024 No
Li Yongqing Ningbo Zhongjin Petrochemical Co., Ltd. Director April 21, 2009 No
Li Yongqing Yisheng Dahua Petrochemical Co., Ltd. Director December 19, 2005 No
Li Yongqing Dalian Yisheng Investment Co., Ltd. Director December 19, 2005 No
Li Yongqing Zhejiang Shengyuan Chemical Fiber Co., Ltd. Vice chairman June 15, 2010 No
Li Yongqing Zhejiang Yisheng Petrochemical Co., Ltd. Director December 12, 2002 No
Li Yongqing Rongxiang Chemical Fiber Co., Ltd. Director To now No
Li Yongqing Ningbo Hengyi Trading Co., Ltd. Director To now No
Xiang Jiongjiong Zhejiang Petroleum & Chemical Co., Ltd. Director June 18, 2015 No
Xiang Jiongjiong Zhejiang Provincial Petroleum Co., Ltd. Director September 16, 2017 No
Shanghai Lingang New Area Jingang Shengyuan Real
Xiang Jiongjiong Director November 2021 No
Estate Co., Ltd.
Shanghai Lingang New Area Jingang Rongsheng Real
Xiang Jiongjiong Director July 2023 No
Estate Co., Ltd.
Xiang Jiongjiong Rongsheng (Zhoushan) New Materials Co., Ltd. Chairman January 2022 No
Xiang Jiongjiong Rongsheng Energy Technology (Inner Mongolia) Co., Ltd. Chairman January 2024 No
Xiang Jiongjiong Rongsheng Chemical (Shanghai) Co., Ltd. Executive director May 2021 No
Xiang Jiongjiong Rongsheng New Material (Taizhou) Co., Ltd. Director December 2023 No
Xiang Jiongjiong Dongzhan Shipping Co., Ltd. Director July 2018 No
Xiang Jiongjiong Zhejiang International Oil and Gas Trading Center Co., Ltd. Vice chairman June 2020 No
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Xiang Jiongjiong Rongsheng Energy Co., Ltd. Executive director April 2021 No
Xiang Jiongjiong Rongsheng Coal Co., Ltd. Executive director June 21, 2018 No
Xiang Jiongjiong Rongxiang Chemical Fiber Co., Ltd. Chairman To now No
Xiang Jiongjiong Zhejiang Yongsheng Technology Co., Ltd. Director To now No
Xiang Jiongjiong Zhejiang ZPC Sales Co., Ltd. Executive director May 2021 No
Xiang Jiongjiong Rongsheng Energy (Zhoushan) Co., Ltd. Executive director, manager November 2023 No
Xiang Jiongjiong Rongsheng International Trading (Hainan) Co., Ltd. Executive director August 2020 No
Xiang Jiongjiong Rongsheng International Trading Co., Ltd. Executive director February 01, 2016 No
Xiang Jiongjiong Zhoushan ZPC Sales Co., Ltd. Executive director May 2023 No
Xiang Jiongjiong Zhoushan ZPC Sales Co., Ltd. Executive director To now No
Executive director, general
Xiang Jiongjiong Zhejiang Rongtong Chemical Fiber New Material Co., Ltd. To now No
manager
Sanyuan Holding Group Hangzhou Thermal Power Co.,
Xiang Jiongjiong Supervisor To now No
Ltd.
Xiang Jiongjiong Taizhou ZPC Sales Co., Ltd. Executive director February 2024 No
Xiang Jiongjiong Ningbo ZPC Sales Co., Ltd. Executive director December 2023 No
Xiang Jiongjiong Zhejiang Rongyi Chemical Fiber Co., Ltd. Executive director, manager March 2024 No
Li Caie Zhejiang Petroleum & Chemical Co., Ltd. Director June 18, 2015 No
Li Caie Ningbo Zhongjin Petrochemical Co., Ltd. Director April 21, 2009 No
Li Caie Rongsheng New Material (Taizhou) Co., Ltd. Director December 2023 No
Li Caie Ningbo United Group Co., Ltd. Director June 18, 2010 No
Executive director, general
Li Caie Zhejiang Rongxiang Thermal Power Co., Ltd. December 2019 No
manager
Li Caie Rongxiang Chemical Fiber Co., Ltd. Vice chairman To now No
Li Caie Rongsheng Technology Co., Ltd. Director To now No
Li Caie Dalian Yisheng Investment Co., Ltd. Director December 19, 2005 No
Li Caie Yisheng Dahua Petrochemical Co., Ltd. Director December 19, 2005 No
Li Caie Yibin Tianyuan Group Co.,Ltd. Director June 19, 2009 November 24, 2023 No
Yu Fengdi Suzhou Shenghui Equipment Co., Ltd. Director December 2019 No
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Yan Jianmiao Zhejiang University Professor September 01, 1998 No
Yan Jianmiao Zhejiang Garden Biopharmaceutical Co.,Ltd. Independent director February 01, 2021 Yes
Yan Jianmiao Zhejiang Jinggong Technology Co., Ltd. Independent director August 27, 2021 Yes
Independent non-executive
Yan Jianmiao Jinda Holding Group Co., Ltd. To now Yes
director
Shao Yiping Zhejiang University of Finance & Economics Professor July 01, 1988 Yes
Shao Yiping Zhejiang Garden Biopharmaceutical Co.,Ltd. Independent director February, 2024 Yes
Shao Yiping UE Furniture Co., Ltd. Independent director February, 2021 Yes
Shao Yiping Zhongtian Services Co., Ltd. Independent director October 12, 2020 Yes
Zheng Xiaodong Beijing JT&N Law Firm Partner December 01, 2009 Yes
Zheng Xiaodong GigaDevice Semiconductor Inc. Director September 12, 2023 Yes
Zheng Xiaodong Beijing Foyou Pharmaceutical Co., Ltd. Independent director June 14, 2019 Yes
Quan Weiying Zhejiang Yisheng Petrochemical Co., Ltd. Supervisor To now Yes
Quan Weiying Hong Kong Sheng Hui Co., Ltd. Director July 05, 2007 No
Chairman of the Board of
Sun Guoming Rongsheng New Material (Taizhou) Co., Ltd. December 2023 No
Supervisors, supervisor
Sun Guoming Zhejiang Rongxiang Thermal Power Co., Ltd. Supervisor December 2019 No
Sun Guoming Zhejiang ZPC Sales Co., Ltd. Supervisor May 2021 No
Sun Guoming Zhoushan ZPC Sales Co., Ltd. Supervisor To now No
Sun Guoming Zhejiang Rongshen New Materials Co., Ltd. Supervisor June 2023 No
Sun Guoming Zhejiang Huiyu New Materials Co., Ltd. Supervisor June 2023 No
Sun Guoming Zhejiang Shengcheng New Materials Co., Ltd. Supervisor June 2023 No
Li Guoqing Zhejiang Shengyuan Chemical Fiber Co., Ltd. Supervisor June 26, 2006 No
Li Guoqing Rongxiang Chemical Fiber Co., Ltd. Supervisor To now No
Chairman, General
Xu Yongming Zhejiang Yongsheng Technology Co., Ltd. To now No
Manager, director
Executive director, general
Xu Yongming Zhejiang Zhuosheng Industry & Trade Co., Ltd. November 2021 No
manager
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Zhou Xianhe Zhejiang Shengyuan Chemical Fiber Co., Ltd. Manager June 2017 No
Zhou Xianhe Zhejiang Rongshen New Materials Co., Ltd. Manager June 2023 No
Zhou Xianhe Zhejiang Huiyu New Materials Co., Ltd. Manager June 2023 No
Zhou Xianhe Zhejiang Shengcheng New Materials Co., Ltd. Manager June 2023 No
Wang Yafang Rongsheng New Material (Taizhou) Co., Ltd. Director December 2023 No
Wang Yafang Suzhou Shenghui Equipment Co., Ltd. Director May 14, 2018 No
Wang Yafang Dalian Yishengyuan Property Co., Ltd. Supervisor March 19, 2018 No
Wang Yafang Zhejiang Daishan Rural Commercial Bank Co., Ltd. Director February 05, 2018 No
Wang Yafang Hangzhou Shengyuan Real Estate Development Co., Ltd. Supervisor June 24, 2014 No
Wang Yafang Rongsheng Technology Co., Ltd. Supervisor April 28, 2016 No
Hainan Shenggu Petrochemical Equipment Investment Co.,
Wang Yafang Supervisor November 25, 2019 No
Ltd.
Wang Yafang Zhejiang Yuhuan Yongxing Rural Bank Co., Ltd. Director September 08, 2017 September 04, 2023 No
Description of employment
None
in other units
Penalties imposed by securities regulatory authorities in the past three years on the Company's current and dismissed directors, supervisors and senior management
in the reporting period
Applicable □Not applicable
See "XII. Punishment and Rectification" in "Section VI Important Matters" for details.
3. Remuneration of the directors, supervisors and senior management
Decision-making procedure, basis of determination and actual payment of remuneration of the directors, supervisors and senior management
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.
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Remuneration of the Company’s directors, supervisors and senior management during the reporting period
Unit：RMB 10,000
Whether Receiving
Total Pre-tax
Remuneration
Remuneration
Name Gender Age Title Status from the
from the
Company’s Related
Company
Party
Li Shuirong Male 68 Chairman Current 475.92 No
Alharbi, Mitib Awadh M Male 47 Director Current 0 Yes
Li Yongqing Male 60 Director Current 0 Yes
Li Caie Female 61 Director Current 0 Yes
Yu Fengdi Female 56 Director Current 0 Yes
Director and
Xiang Jiongjiong Male 41 General Current 233.43 No
Manager
Independent
Yan Jianmiao Male 59 Current 14.29 No
director
Independent
Shao Yiping Female 61 Current 14.29 No
director
Independent
Zheng Xiaodong Male 46 Current 14.29 No
director
Secretary of the
Quan Weiying Female 46 Board of Current 98.08 No
Directors
Chairman of the
Sun Guoming Male 43 Board of Current 0 Yes
Supervisors
Li Guoqing Male 54 Supervisor Current 0 Yes
Xu Yongming Male 53 Supervisor Current 156.52 No
Vice General
Zhou Xianhe Male 49 Current 154.19 No
Manager
Wang Yafang Female 45 CFO Current 98.13 No
Total -- -- -- -- 1,259.14 --
Description of other situations
□Applicable Not applicable
VI. The Performance of Duties of Directors During the Reporting Period
1. Convening of the Board of Directors Meetings during the reporting period
Convening Disclosure
Session Meeting resolution
date date
6th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
March 27, March 28,
the 6th Board 2&stockCode=002493&announcementId=1216233256&announcementTime=2
2023 2023
of Directors 023-03-28
7th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
April 19, April 20,
the 6th Board 2&stockCode=002493&announcementId=1216478194&announcementTime=2
2023 2023
of Directors 023-04-20
75 / 269
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8th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
April 26, April 27,
the 6th Board 2&stockCode=002493&announcementId=1216613522&announcementTime=2
2023 2023
of Directors 023-04-27
9th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
July 31, August 01,
the 6th Board 2&stockCode=002493&announcementId=1217431004&announcementTime=2
2023 2023
of Directors 023-08-01
10th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
August 21, August 22,
the 6th Board 2&stockCode=002493&announcementId=1217595007&announcementTime=2
2023 2023
of Directors 023-08-22
11th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
August 25, August 26,
the 6th Board 2&stockCode=002493&announcementId=1217651531&announcementTime=2
2023 2023
of Directors 023-08-26
12th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
September September
the 6th Board 2&stockCode=002493&announcementId=1217803067&announcementTime=2
07, 2023 08, 2023
of Directors 023-09-08
13th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
October 25, October 26,
the 6th Board 2&stockCode=002493&announcementId=1218148405&announcementTime=2
2023 2023
of Directors 023-10-26
14th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
November November
the 6th Board 2&stockCode=002493&announcementId=1218454495&announcementTime=2
27, 2023 28, 2023
of Directors 023-11-28
15th Meeting of http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=990001550
December December
the 6th Board 2&stockCode=002493&announcementId=1218750704&announcementTime=2
28, 2023 29, 2023
of Directors 023-12-29
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
Number
the Board
Number Number of Whether of
of Number of Number
of Attendanc Being Absent Attenda
Directors Attendance of
Presence e at the from the nce at
Meeting at the Absence
at the Board of Board of the
Name of Directors that Board of from the
Board of Directors Directors General
Should be Directors Board of
Director Meeting by Meeting Meeting
Attended Meeting by Directors
s correspond Twice in a of
During the Proxy Meeting
Meeting ence Row Shareho
Reporting
lders
Period
Li Shuirong 10 1 9 0 0 No 5
Alharbi, Mitib Awadh M 2 0 2 0 0 No 0
Li Yongqing 10 1 9 0 0 No 5
Li Caie 10 1 9 0 0 No 5
Yu Fengdi 10 1 9 0 0 No 5
Xiang Jiongjiong 10 1 9 0 0 No 5
Quan Weiying 8 1 7 0 0 No 5
Yan Jianmiao 10 1 9 0 0 No 5
Shao Yiping 10 1 9 0 0 No 5
Zheng Xiaodong 10 1 9 0 0 No 5
3. Disagreement voiced by directors on relevant corporate matters
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Full Text of 2023 Annual Report
Whether directors propose an objection to the Company's relevant matters
□Yes No
During the reporting period, the directors voiced no disagreement on relevant corporate matters.
4. Additional information on the performance of duties of directors
Whether directors' suggestions to the Company are adopted
Yes □No
Explanations on acceptance or rejection of directors' suggestions to the Company
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 Matters that
Number
Convening Concerning Raise
Name Members of Content of Meeting Important Opinions and Suggestions
date Performance of Disagreement
Sessions
Duties (If Any)
In terms of internal audit, the Audit Committee examined
the implementation of the internal audit department’s work
Reviewed the Rongsheng plan and verified the audit results. In terms of financial
Petrochemical Co., Ltd. 2022 reports, the Audit Committee communicated with the
Li Internal Audit Work Report, accounting department and external accountants, examined
Yongqing, the Rongsheng Petrochemical the norms of the financial system and the preparation
Li Caie, Yan Co., Ltd. 2022 Q4 Work process for financial reports, and ensured the accuracy and All the contents of
The Audit January 16,
Jianmiao, 1 Report, the Rongsheng integrity of the reports. In terms of internal control, the the meeting were None
Committee 2023
Shao Yiping, Petrochemical Co., Ltd. 2023 Audit Committee agreed that the Company has established passed after review.
Zheng Internal Audit Work Plan, and a well-designed internal control framework, and that the
Xiaodong the Rongsheng Petrochemical internal control department has fully carried out the
Co., Ltd. 2023 Q1 Internal internal control test process in strict accordance with the
Audit Work Plan. relevant norms and regulations, so as to effectively control
the gaps in internal control and improve the capability in
this respect.
Reviewed the Report of the
Li Audit Committee on the
According to the requirements of laws and regulations,
Yongqing, Performance Evaluation and
combined with the actual situation of the Company, it
Li Caie, Yan Supervision of Accounting All the contents of
Audit April 12, reviewed the annual performance of accounting firms,
Jianmiao, 1 Firms in 2022 and the the meeting were None
Committee 2023 internal audit supervision responsibilities and the renewal
Shao Yiping, Proposal of Rongsheng passed after review.
of audit institutions, and guided the orderly development
Zheng Petrochemical Co., Ltd. on
of internal audit work.
Xiaodong Renewing the Appointment
of Audit Institutions in 2023.
Li
Reviewed the Rongsheng
Yongqing,
Petrochemical Co., Ltd. 2023 In line with the legal guidance and the Company’s actual
Li Caie, Yan All the contents of
Audit April 18, Q1 Internal Audit Work conditions, the Audit Committee reviewed the quarterly
Jianmiao, 1 the meeting were None
Committee 2023 Report and the Rongsheng report, put forward opinions on the internal audit results,
Shao Yiping, passed after review.
Petrochemical Co., Ltd. 2023 and guided the internal audit efforts.
Zheng
Q2 Internal Audit Work Plan.
Xiaodong
Li Reviewed the Rongsheng In line with the legal guidance and the Company’s actual
All the contents of
Audit Yongqing, July 13, Petrochemical Co., Ltd. 2023 conditions, the Audit Committee reviewed the quarterly
1 the meeting were None
Committee Li Caie, Yan 2023 Q2 Internal Audit Work report, put forward opinions on the internal audit results,
passed after review.
Jianmiao, Report, the Rongsheng and guided the internal audit efforts.
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Shao Yiping, Petrochemical Co., Ltd. 2023
Zheng Semi-annual Internal Audit
Xiaodong Work Report and the
Rongsheng Petrochemical
Co., Ltd. 2023 Q3 Internal
Audit Work Report.
Li
Reviewed the Rongsheng
Yongqing,
Petrochemical Co., Ltd. 2023 In line with the legal guidance and the Company’s actual
Li Caie, Yan All the contents of
Audit October Q3 Internal Audit Work conditions, the Audit Committee reviewed the quarterly
Jianmiao, 1 the meeting were None
Committee 25, 2023 Report and the Rongsheng report, put forward opinions on the internal audit results,
Shao Yiping, passed after review.
Petrochemical Co., Ltd. 2023 and guided the internal audit efforts.
Zheng
Q4 Internal Audit Work Plan.
Xiaodong
During the reporting period, the Nominating Committee
met to fully discuss the size and composition of the Board
All members reviewed the of Directors, and studied the rationality of the election
Shao Yiping,
work in the past year, conditions, selection procedures and term of office of the
Li Shuirong,
evaluated the effectiveness of Company's directors and senior executives, and to
Yu Fengdi, All the contents of
Nomination April 18, the nomination process, nominate, review and recommend Mr. Zhou Xianhe as the
Yan 1 the meeting were None
Committee 2023 discussed and determined the deputy general manager of the Company in accordance
Jianmiao, passed after review.
new nomination strategy and with the Company Law of the People's Republic of China,
Zheng
worked out the work plan for the Guidelines on Corporate Governance for Listed
Xiaodong
the next year. Companies, the Articles of Association and other
applicable laws and regulations, and in combination with
the Company's actual conditions.
Li Shuirong,
Li All members summarized the
Yongqing, work in 2022 and reviewed Major business plan for 2023: 1. Strengthen the monitoring
Strategy and All the contents of
Yan April 18, the major business strategy of major projects; 2. Deepen the research on major
ESG 1 the meeting were None
Jianmiao, 2023 for 2023 and the Social investment decisions; 3. Prevent and control market risks
Committee passed after review.
Shao Yiping, Responsibility Report in and maintain stable operations.
Zheng 2022.
Xiaodong
Reviewed the 2022
Yan Remuneration of the During the reporting period, the Remuneration and
Jianmiao, Li Company's Directors, Appraisal Committee reviewed the rationality of the
The
Shuirong, Supervisors and Senior remuneration package and policy of the Company's All the contents of
Remuneration April 18,
Yu Fengdi, 1 Executives and the directors, supervisors and senior executives, and conducted the meeting were None
and Appraisal 2023
Shao Yiping, Remuneration Assessment performance evaluation on them according to their passed after review.
Committee
Zheng Plan of Directors, Supervisors authority and major responsibilities, along with the internal
Xiaodong and Senior Management of finances and KPI performance for 2022.
the Company in 2023.
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The Risk Control Committee analyzed the situation in
2022 and agreed that in 2023, the Company should
continue to focus on the overarching business objectives,
Zheng
summarize and implement the fundamental risk control
Xiaodong,
Reviewed the Assessment of processes across the major links, key fields and even the
Yan
the Company's Operational whole process, foster a good risk control culture, and All the contents of
Risk Control Jianmiao, April 18,
1 Risks in 2022 and the improve the comprehensive risk management system. To the meeting were None
Committee Shao Yiping, 2023
Suggestions on Controlling that end, the Company should develop risk management passed after review.
Li Caie,
Operational Risks in 2023. strategies, evaluate the functional structure of the risk
Xiang
control organization, and improve the risk control
Jiongjiong
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
□Yes No
The Board of Supervisors voiced no disagreement on the supervisory matters during the reporting period.
IX. Corporate Staff
1. Staff number, professional composition, and educational background
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Number of Staff on the Parent Company’s Payroll at the
1,935
End of the Reporting Period
Number of Staff on the Main Subsidiaries’ Payroll at the
17,256
End of the Reporting Period
Total Number of Staff on the Company’s Payroll at the End
19,191
of the Reporting Period
Total Number of Staff Receiving Remuneration 19,191
Number of Retired Staff Whose Pensions Are Covered by
0
the Parent Company and Main Subsidiaries
Professional Composition
Category Number
Production Staff 13,747
Sales Staff 330
Technical Staff 3,210
Financial Staff 117
Administrative Staff 1,287
Logistical Staff 500
Total 19,191
Educational Background
Category Number
Bachelor’s Degree or Above 5,301
Junior College 7,211
Senior High School and Technical Secondary School 2,616
Others 4,063
Total 19,191
2. Remuneration policy
The Company abides by the Labor Law 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.
4. Labor outsourcing
□Applicable Not applicable
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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
Applicable □Not applicable
According to the profit distribution plan for 2022 approved at the 7th Meeting of the Sixth Session of the
Board of Directors on April 18, 2023, based on the current equity base of 9,842,382,348 shares which is based
on existing total share capital of 10,125,525,000 shares deducted by the repurchased shares of 283,142,652
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 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 standards and proportions are clear: Yes
Whether the relevant decision-making procedures and mechanisms are complete: Yes
Whether the independent directors perform their duties and play their due role: Yes
If the Company does not dole out cash dividends, it shall disclose the specific reasons and the next steps it
N/A
intends to take to enhance the level of investor returns:
Whether the minority shareholders have the opportunity to fully express their opinions and demands, and
Yes
whether their legitimate rights and interests have been fully protected:
Whether the conditions and procedures for adjusting or changing cash dividend policy are compliant and
Yes
transparent:
The Company was profitable during the reporting period and the parent company's profit available for distribution
to shareholders was positive but no cash dividend distribution proposal was made.
□Applicable Not applicable
Profit Distribution and Conversion of Capital Reserve into Share Capital during the Reporting Period
Applicable □Not applicable
Number of bonus shares per 10 shares (shares) 0
Dividend per 10 shares (yuan) (tax inclusive) 1.00
Equity base for distribution proposal (shares) 9,573,144,542
Total cash dividend (including other means) (yuan) 957,314,454.20
Total cash dividend (including other means) as a percentage
100.00%
of total profit distribution
Cash dividends
Where the Company is in a growth stage with any significant fund expenditure arrangement, cash dividend shall not be less than
20% of the total profit distribution at the time of profit distribution;
Detailed Information on the Distribution of Corporate Profits and the Shift Plan of Public Accumulation Funds to Capital
Stock
Audited by Pan-China Certified Public Accountants (Special General Partnership), the Company (parent company) realized a net
profit of 876,812,499.59 yuan for the year 2023, plus the undistributed profit of 1,760,789,418.72 yuan at the beginning of the
year, less the legal surplus reserve of 87,681,249.96 yuan withdrawn in the current period, and less the cash dividend of
1,476,357,352.2 yuan in the previous year, the actual profit available for distribution to the shareholders as of December 31, 2023
82 / 269
Full Text of 2023 Annual Report
was 1,073,563,316.15 yuan.
The Company plans to distribute cash dividend of 1 yuan (tax inclusive) per 10 shares to all shareholders. Cash dividend totaling
957,314,454.2 yuan (tax inclusive) is to be distributed, which is calculated based on the Company’s total share less accumulative
repurchased shares of 552,380,458 shares as of the date of approval for issuing the financial statements, i.e., 9,573,144,542 shares,
with remaining undistributed profit carried forward to the following period. In this year, the Company will distribute 0 bonus
shares for every 10 shares and transfer 0 shares for every 10 shares from capital reserve. The shares of the Company held by the
Company through the special securities account for repurchase will not participate in the profit distribution. If the Company’s total
share capital changes due to convertible bond conversion, share repurchase, repurchase and cancellation of equity incentive shares
granted, grant and registration of reserved shares, etc. before the equity registration date of equity distribution, total distribution
amount will be adjusted, with distribution proportion unchanged.
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 equity 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
N/A
XIV. Internal Control Assessment Report and Internal Control Audit Report
1. Internal control assessment report
Report Disclosure Date April 26, 2024
The Corporate Internal Control Self-Assessment Report 2023 is available on CNINFO
Report Disclosure Index
(http://www.cninfo.com.cn).
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Proportion of the Total Assets of
the Organizations Included in the
Assessment Scope to Those of the 94.59%
Company’s Consolidated
Financial Statements
Proportion of the Operating
Revenues of the Organizations
Included in the Assessment Scope
93.82%
to Those of the Company’s
Consolidated Financial
Statements
Defect Identification Standards
Category Financial Statements Non-Financial Statements
Indicators of material deficiencies in
financial reporting include: (1) Ineffective
control environment; (2) Fraud by directors,
supervisors and senior management; (3) A
material misstatement in the current
period’s financial report identified by an If the following circumstances occur, it can
external audit and the Company’s failure to be recognized as material deficiencies, and
detect the misstatement in the course of its other circumstances depending on the
operations; (4) Ineffective supervision of degree of impact can be recognized as
internal control by the corporate audit significant deficiencies or general
committee and internal audit organization; deficiencies, respectively. (1) Unscientific
(5) Other deficiencies that may affect the corporate decision-making procedures; (2)
correct judgment of statement users. Violation of national laws and regulations,
Qualitative Standards Indicators of significant deficiencies in such as environmental pollution; (3) Loss of
financial reporting include internal control management or technical personnel in a
deficiencies that, alone or together with large scale; (4) Frequent negative news in
other deficiencies, have a reasonable the media; (5) The results of internal control
likelihood of causing an inability to prevent evaluations, especially material or
or detect and correct, in a timely manner, significant deficiencies, have not been
misstatements in financial reporting that, rectified; (6) Lack of institutional control
although not meeting or exceeding the level over important operations or systematic
of significance, nonetheless warrant the failure of the system.
attention of the Board of Directors and
management. General deficiencies are
control deficiencies other than the material
deficiencies and significant deficiencies
described above.
The operating income and total assets are The operating income and total assets are
taken as the measurement indicators. taken as the measurement indicators.
Internal control deficiencies that may cause Internal control deficiencies that may cause
or result in losses related to the statement of or result in losses related to the statement of
profit are measured by the indicator of profit are measured by the indicator of
operating revenues. If the amount of operating revenues. If the amount of
financial reporting misstatements that may financial reporting misstatements that may
result from the deficiency, alone or together result from the deficiency, alone or together
with other deficiencies, is less than 0.5% of with other deficiencies, is less than 0.5% of
operating revenues, it is recognized as a operating revenues, it is recognized as a
general deficiency; if it exceeds 0.5% of general deficiency; if it exceeds 0.5% of
Quantitative Standards operating revenues but is less than 1%, it is operating revenues but is less than 1%, it is
recognized as a significant deficiency; if it recognized as a significant deficiency; if it
exceeds 1% of operating revenues, it is exceeds 1% of operating revenues, it is
recognized as a material deficiency. Internal recognized as a material deficiency. Internal
control deficiencies that may result in or control deficiencies that may result in or
result in losses related to asset management result in losses related to asset management
are measured by the indicator of total assets. are measured by the indicator of total assets.
If the amount of financial reporting If the amount of financial reporting
misstatements that may result from the misstatements that may result from the
deficiency, alone or together with other deficiency, alone or together with other
deficiencies, is less than 0.5% of total deficiencies, is less than 0.5% of total
assets, it is recognized as a general assets, it is recognized as a general
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deficiency; if it exceeds 0.5% of total assets deficiency; if it exceeds 0.5% of total assets
but is less than 1%, it is recognized as a but is less than 1%, it is recognized as a
significant deficiency; if it exceeds 1% of significant deficiency; if it exceeds 1% of
total assets, it is recognized as a material total assets, it is recognized as a material
deficiency. deficiency.
Number of material defects in
0
financial statements
Number of material defects in non-
0
financial statements
Number of important defects in
0
financial statements
Number of important defects in
0
non-financial statements
2. Internal control audit report
Applicable □Not applicable
Review Suggestions Section in the Internal Control Audit Report
In our opinion, Rongsheng Petrochemical maintained, in all material respects, effective internal control over financial reporting as
of December 31, 2023, in accordance with the Basic Standard for Enterprise Internal Control and related provisions.
Report Disclosure Status Disclosed
Report Disclosure Date April 26, 2024
The Internal Control Audit Report in 2023 is available on
Report Disclosure Index
CNINFO (http://www.cninfo.com.cn).
Suggestions Category Standard Clean Opinion
Whether Having Material Defects in Non-Financial
No
Statements
Whether the accounting firm issued the internal control audit report of non-standard opinion
□Yes No
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
Whether the listed company and its subsidiaries are key emission companies announced by the environmental
protection department
Yes □No
Environmental protection-related policies and industry standards
The Company and its subsidiaries have strictly abided by the laws and regulations such as the Environmental
Protection Law of the People's Republic of China, Law of the People's Republic of China on the Prevention and
Control of Environmental Pollution by Solid Waste, Law of the People's Republic of China on Prevention and
Control of Environmental Noise Pollution, Law of the People's Republic of China on Prevention and Control of
Air Pollution, Law of the People's Republic of China on Prevention and Control of Radioactive Pollution, and the
requirements of the ecological environmental protection department, and timely handled the environmental
protection permit procedures such as emission right, applied for and obtained the pollutant discharge permit,
business license for hazardous waste and radiation safety permit; They have implemented procedures such as
filing the sewage outlet into the sea, filing the self-monitoring plan and filing the emergency plan for sudden
environmental incidents, and ensured the legal start-up and legitimate operation of relevant devices of all projects
and supporting projects.
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 (GB18599-2001), the Standard for
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Pollution Control of Hazardous Waste Storage (GB18597-2001), the Standard for Pollution Control of Hazardous
Waste Incineration (GB18484-2020) and the Standard for Pollution Control of Hazardous Waste Landfill
(GB18598-2019).
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
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
Period of
S/N Certificate Certificate No. Issued by
validity
Rongsheng Petrochemical Hangzhou Ecological November
1 91330000255693873W001P
Pollutant Discharge Permit Environment Bureau 05, 2026
Zhoushan Ecological Environment July 18,
2 ZPC Pollutant Discharge Permit 913309003440581426001P
Bureau Daishan Branch 2024
Zhoushan Ecological Environment February
3 ZPC Radiation Safety Permit ZHFZ [L2105]
Bureau 28, 2029
Zhongjin Petrochemical Ningbo Ecological Environment December
4 91330211764527945N001P
Pollutant Discharge Permit Bureau (Zhenhai Branch) 31, 2025
Zhongjin Petrochemical Ecological Environment July 16,
5 ZHFZ [B2500]
Radiation Safety Permit Department of Zhejiang Province 2028
Pollutant Discharge Permit for
Ningbo Ecological Environment February
6 Limited Company of Niluoshan 91330211MA2CHYTM1K001V
Bureau (Zhenhai Branch) 09, 2027
New Energy
Pollutant Discharge Permit of Dalian Ecological Environment October
7 912102137873094570001R
Yisheng Dahua Bureau 13, 2028
Radiation Safety Permit of Dalian Ecological Environment November
8 LHFZ [B0001]
Yisheng Dahua Bureau 25, 2026
Ecological Environment Bureau of
Pollutant Discharge Permit of May 14,
9 914603005527989627001P Yangpu Economic Development
Hainan Yisheng 2026
Zone
Radiation Safety Permit of Department of Emergency December
10 QHFZ [00153]
Hainan Yisheng Management of Hainan Province 26, 2026
Zhejiang Yisheng Pollutant Ningbo Ecological Environment August
11 91330200744973411W001W
Discharge Permit Bureau (Beilun Branch) 02, 2028
Zhejiang Yisheng Radiation Ecological Environment November
12 ZHFZ (B2005)
Safety Permit Department of Zhejiang Province 17, 2024
Shengyuan Petrochemical Fiber Hangzhou Ecological November
13 91330109754409144F001P
Pollutant Discharge Permit Environment Bureau 05, 2026
Shengyuan Petrochemical Fiber Hangzhou Ecological December
14 ZHFZ [A2408]
Radiation Safety Permit Environment Bureau 04, 2028
Pollutant Discharge Permit of Shaoxing Ecology and February
15 91330621MA2887DL53001Q
Yongsheng Technology Environment Bureau 06, 2029
Radiation Safety Permit of Ecological Environment August
16 ZHFZ [D2193]
Yongsheng Technology Department of Zhejiang Province 07, 2027
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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
Company or Distribution Total
pollutants pollutants Discharge of Emission Pollutant discharge Total Excessive
Subsidiary of discharge certified
and and method discharge concentration/intensity standards in execution emissions emissions
Name outlets emissions
particular particular outlets
pollutants pollutants
Ultra-clean
Rongsheng Smoke of
Waste gas Organized 2 2.357mg/m 20mg/Nm 3.3997t/a 13.65t/a /
Petrochemical dust Rongxiang
furnace area
Ultra-clean
Rongsheng Sulfur of
Waste gas Organized 2 3.462mg/m 50mg/Nm 4.8752t/a 121.93t/a /
Petrochemical dioxide Rongxiang
furnace area
Ultra-clean
Rongsheng of
Waste gas NOx Organized 2 20.647mg/m 150mg/Nm 28.5046t/a 102.59t/a /
Petrochemical Rongxiang
furnace area
Ultra-clean
Rongsheng of
Waste gas VOC Organized 2 0.633mg/m 60mg/L 0.9769t/a 110.38t/a /
Petrochemical Rongxiang
furnace area
Rongsheng Waste Ammonia Shengyuan
Under control 1 1.72mg/m 35mg/L 0.0735t/a 0.16t/a /
Petrochemical water nitrogen factory gate
Chemical
Rongsheng Waste Shengyuan
oxygen Under control 1 29.5mg/m 500mg/Nm 1.22575t/a 3.69t/a /
Petrochemical water factory gate
demand
Particulate Discharge In the Mean: 0.73mg/,; range: GB31570、GB31571、
ZPC Waste gas 58 113.68t/a 1,565.64t/a /
matter after treatment factory 0-11.23mg/m3 GB31572
Sulfur Discharge In the Mean: 3.09mg/,; range: GB31570、GB31571、
ZPC Waste gas 89 432.92t/a 2750.8t/a /
dioxide after treatment factory 0.08— 29.39mg/m3 GB31572
Discharge In the Mean: 31.58mg/,; range: GB31570、GB31571、
ZPC Waste gas NOx 91 4354.19t/a 7078.45t/a /
after treatment factory 0.26— 103.05mg/m3 GB31572
Waste Discharge In the Mean: 31.24mg/,; range: GB31570、GB31571、
ZPC COD 1 507.07t/a 524.04t/a /
water after treatment factory 1.1— 55mg/m3 GB31572
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Mean: 0.1352mg/,;
Waste Ammonia Discharge In the GB31570、GB31571、
ZPC 1 range: 0.01— 2.92t/a 53.31t/a /
water nitrogen after treatment factory GB31572
4.31mg/m3
Zhongjin Sulfur Continuous Whole
Waste gas 15 102.08mg/m GB13223、GB31570 54.16t/a 251.76t/a /
Petrochemical dioxide blow-down factory
Zhongjin Continuous Whole
Waste gas NOx 15 475.70mg/m GB13223、GB31570 238.39t/a 1141.74t/a /
Petrochemical blow-down factory
Zhongjin Smoke Continuous Whole
Waste gas 15 56.49mg/m GB13223、GB31570 29.6t/a 216.47t/a /
Petrochemical dust blow-down factory
Chemical
Zhongjin Waste Continuous
oxygen 2 East side 59.49mg/L GB8978 99.19t/a 469.68t/a /
Petrochemical water blow-down
demand
Zhongjin Waste Ammonia Continuous
2 East side 1.20mg/L GB8978 1.26t/a 52.42t/a /
Petrochemical water nitrogen blow-down
Southeast
Yisheng Continuous
Waste gas NOx 3 corner of the 23.48mg/m 50mg/m 107.04t/a 405t/a /
Dahua blow-down
plant
Southeast
Yisheng Sulfur Continuous
Waste gas 3 corner of the 1.15mg/m 35mg/m 3.54t/a 251t/a /
Dahua dioxide blow-down
plant
Southeast
Yisheng Smoke Continuous
Waste gas 3 corner of the 1.32mg/m 5mg/m 4.84t/a 51t/a /
Dahua dust blow-down
plant
Northwest
Chemical
Yisheng Waste Continuous corner and
oxygen 2 56.28mg/L 300mg/L 708.77t/a 1680t/a /
Dahua water blow-down north side of
demand
the plant
Northwest
Yisheng Waste Ammonia Continuous corner and
2 0.2mg/L 30mg/L 4.88t/a 182t/a /
Dahua water nitrogen blow-down north side of
the plant
Boiler/heat Boiler: 12.25mg/m
Hainan Discharge Boiler: 50mg/mHeat
Waste gas SO2 2 medium Heat medium furnace: 128.07t/a 679.9t/a /
Yisheng after treatment medium furnace: 200mg/m
furnace 39.54mg/m
Boiler/heat Boiler: 22.86mg/m
Hainan Discharge Boiler: 100mg/mHeat
Waste gas NOx 2 medium Heat medium furnace: 274.13t/a 989.9t/a /
Yisheng after treatment medium furnace: 200mg/m
furnace 100.43mg/m
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Boiler/heat Boiler: 4.91mg/mHeat
Hainan Smoke Discharge Boiler: 20mg/mHeat
Waste gas 2 medium medium furnace: 41.92t/a 232t/a /
Yisheng dust after treatment medium furnace: 30mg/m
furnace 12.75mg/m
Hainan Waste Discharge Sewage
COD 1 27.67mg/m 50mg/m 121.35t/a 236.15t/a /
Yisheng water after treatment station
Hainan Waste Ammonia Discharge Sewage
1 0.17mg/m 5mg/m 0.67t/a 17.7t/a /
Yisheng water nitrogen after treatment station
Zhejiang Discharge
Waste gas SO2 2 Boiler island 9.68mg/m/7.61mg/m 35mg/m 39.24t/a 197.45t/a /
Yisheng after treatment
Zhejiang Discharge
Waste gas NOX 2 Boiler island 14.98mg/m/21.53mg/m 50mg/m 72.98t/a 409.53t/a /
Yisheng after treatment
Zhejiang Smoke Discharge
Waste gas 2 Boiler island 3.26mg/m/1.76mg/m 10mg/m 14.84t/a 78.99t/a /
Yisheng dust after treatment
Zhejiang Waste Discharge Sewage
COD 1 46.03mg/L/32.08mg/L 100mg/L/60mg/L 606.84t/a 1039.84t/a /
Yisheng water after treatment station
Zhejiang Waste Ammonia Discharge Sewage
1 0.17mg/L/0.15mg/L 8mg/L 2.25t/a 15.59t/a /
Yisheng water nitrogen after treatment station
One for
Shengyuan
Particulate use and
Chemical Waste gas Organized Furnace area 3.8mg/m 20mg/Nm 6.86t/a 8.74t/a /
matter one for
Fiber
standby
One for
Shengyuan
Sulfur use and
Chemical Waste gas Organized Furnace area 1.68mg/m 50mg/Nm 3.18t/a 17.38t/a /
dioxide one for
Fiber
standby
One for
Shengyuan
use and
Chemical Waste gas NOx Organized Furnace area 26.34mg/m 150mg/Nm 40.38t/a 52.15t/a /
one for
Fiber
standby
One for
Shengyuan
Non- Organized and use and 1.337t/a
Chemical Waste gas Furnace area 0.9mg/m 60mg/L 97.29t/a /
methane unorganized one for (organized)
Fiber
standby
Shengyuan Southeast
Waste Ammonia
Chemical Organized 1 corner of the 1.72mg/m 35mg/L 0.0735t/a 1.3t/a /
water nitrogen
Fiber plant
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Shengyuan Chemical Southeast
Waste
Chemical oxygen Organized 1 corner of the 29.57mg/m 500mg/Nm 1.22575t/a 2.74t/a /
water
Fiber demand plant
Emission Standard of Air
Yongsheng Organized In the
Waste gas NOx 1 45mg/m Pollutants for Boilers 22.261t/a 86t/a /
Technology emission factory
(GB13271-2014)
Emission Standard of Air
Yongsheng Sulfur Organized In the
Waste gas 1 6mg/m Pollutants for Boilers 1.278t/a 106.2t/a /
Technology dioxide emission factory
(GB13271-2014)
Emission Standard of Air
Yongsheng Organized In the
Waste gas NmHc 1 4.5mg/m Pollutants for Boilers 12.713t/a 19.27t/a /
Technology emission factory
(GB13271-2014)
Chemical Integrated Wastewater
Yongsheng Waste In the
oxygen Under control 1 165mg/L Discharge Standard 4.948t/a 10.8t/a /
Technology water factory
demand (GB31575-2015)
Integrated Wastewater
Yongsheng Waste Ammonia In the
Under control 1 18.8mg/L Discharge Standard 0.037t/a 1.35t/a /
Technology water nitrogen factory
(GB31575-2015)
Treatment of pollutants
Company name Types of pollutants Treatment technology and treatment mode
Waste gas, waste The company began to construct the ultra-clean desulfurization tower and flue gas desulfurization and dust removal device in March
Rongsheng Petrochemical water and solid 2016, which was put into operation in September 2016. At present, the device is in good operation and can meet the flue gas emission
waste standard of Xiaoshan District.
The prevention and control measures are strictly designed, constructed, and put into use simultaneously with the main equipment in
Waste gas, waste
accordance with the requirements of environmental impact assessment. Currently, the operation is in good condition. According to other
ZPC water, solid waste
rectification requirements proposed by the environmental protection department, some pollution prevention and control facilities have
and noise
been added, further improving the environmental protection management level of the device.
Waste gas, waste
The prevention and control measures are designed, constructed, and put into use simultaneously with the main device according to the
Zhongjin Petrochemical water, solid waste
EIA requirements. The operation is now in good condition.
and noise
The prevention and control measures are strictly designed, constructed, and put into use simultaneously with the main equipment in
Waste gas, waste accordance with the requirements of environmental impact assessment. Currently, the operation is in good condition and all pollutants are
Yisheng Dahua water, solid waste discharged up to the standard. At the same time, according to the rectification requirements proposed by the ecological and environmental
and noise protection department, new environmental governance facilities have been added, further improving the level of environmental
governance.
Shengyuan Chemical Fiber Waste gas 1.38 tons of volatile organic compounds, 6.87 tons of particulate matters, 3.18 tons of sulfur dioxide and 40.39 tons of nitrogen oxides;
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The discharge concentration meets the permit limit in the Pollutant Discharge Permit.
2.45 tons of total chemical oxygen demand, and 0.15 tons of ammonia nitrogen; The discharge concentration meets the permit limit in the
Waste water
Pollutant Discharge Permit.
284.1 tons of all kinds of hazardous wastes were generated, all of which were handled by the outsourcing qualification units, and 13,236
Solid waste
tons of all kinds of general solid wastes were handled by the outsourcing qualification units.
1 set of stripper
Gas boiler flue gas low-nitrogen combustion system
Waste gas Waste gas treatment Secondary activated carbon adsorption device matched with film drawing workshop
Pulse dust removal device for PTA feeding dust
1 set of odor generating unit capping and waste gas collection and treatment device in sewage station
Yongsheng Technology Sewage Treatment 1 set of sewage treatment system with a treatment capacity of 1000t/d
Rain and sewage
Waste water Establish rain and sewage diversion system and clean water and sewage diversion system in the factory area;
diversion, clean
Standardize the sewage outlets in the factory area, and install online monitoring devices for pH, COD and
water and sewage
ammonia nitrogen
diversion, etc.
Set up a sound insulation room separately, install sound attenuation and sound insulation equipment, choose low-
Noise Noise control
noise equipment, make reasonable layout, and ensure basic vibration prevention and noise reduction
Solid waste Solid waste disposal Standardize the hazardous waste yards and general solid waste yards, and dispose of hazardous waste
Emergency response plan for environmental emergencies
Emergency plan Filing number Filing time
Emergency Response Plan for Paroxysmal Environment Events of Rongsheng Petrochemical Co., Ltd. 330109-2022-045-L July 26, 2022
Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Petroleum & Chemical Co., Ltd. 330921-2023-004-H July 11, 2023
Emergency Response Plan for Paroxysmal Environment Events of Ningbo Zhongjin Petrochemical Co., Ltd. 330211-2022-019-H March 2022
Emergency Response Plan for Paroxysmal Environment Events of Yisheng Dahua Petrochemical Co., Ltd. 2102132023-066-H March 2023
Emergency Response Plan for Paroxysmal Environment Events of Hainan Yisheng Petrochemical Co., Ltd. / December 2021
Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Yisheng Petrochemical Co., Ltd. / September 2023
Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Shengyuan Chemical Fiber Co., Ltd. 330109-2022-034-L June 02, 2022
Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Yongsheng Technology Co., Ltd. 330621-2021-106-L October 2021
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Environmental self-monitoring plan
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 plan 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 taxes
The Company’s investment in environmental governance and protection in 2023 was RMB 659,566,732.
Measures taken to reduce carbon emissions during the reporting period and their effects
Applicable □Not applicable
For specific measures, please refer to the 2023 Sustainability Report disclosed by the Company on April 26,
2024 on CNINFO (www.cninfo.com.cn).
Administrative penalties for environmental issues during the reporting period
None
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) department to comprehensively supervise and manage the Company's HSE work. 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.
Relevant situation of environmental accidents in listed companies
N/A
Ⅱ. Social responsibility information
The Company actively performs its social responsibility. For the full text, please refer to the 2023
Sustainability Report released by the Company on April 26, 2024 on CNINFO (www.cninfo.com.cn).
III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
The Company actively performs its social responsibility, and supports poverty alleviation and rural
revitalization. For relevant information, please refer to the 2023 Sustainability Report disclosed by the Company
on April 26, 2024 on CNINFO (www.cninfo.com.cn).
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Section VI Important Matters
I. Fulfillment of Commitments
1. Matters in respect of which the Company’s actual controllers, shareholders, related parties, acquirers
and the Company and other parties related to the commitments have completed fulfillment of the
commitments during the reporting period and those which have not been completed as of the end of the
reporting period
Applicable □Not applicable
Commit Time of Term of
Cause of Commitm Fulfillmen
ment Content of Commitment Commit Commit
Commitment ent Party t
Type ment ment
Share reform
N/A N/A N/A N/A N/A
commitment
Commitments
stated in the
Report of
N/A N/A N/A N/A N/A
Acquisition or
Equity 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
Term of
Directors Commit transfer shares they held (including directly
Commitment commitme
and ment and indirectly) in the issuer of more than
made during November nt for
supervisor made 25% of the total shares held (including Fulfilled
IPO or re- 02, 2010 share
s of the during directly and indirectly) by them in the
financing lock-up is
Company IPO issuer every year. Within half a year after
36 months
resignation, they would not transfer shares
directly or indirectly held by them in the
issuer.
Equity
incentive N/A N/A N/A N/A N/A
commitment
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
Other Commit
same industry. Li Shuirong, the de facto
commitments Sharehold ment
controller and the largest natural person November
to minority ers before made Long term Fulfilled
shareholder of the Company, and other 02, 2010
shareholders of issuance during
shareholders, including Li Yongqing, Li
the Company IPO
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 industry.
Other
N/A N/A N/A N/A N/A
commitments
94 / 269
Full Text of 2023 Annual Report
Whether the commitments are performed
Yes
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
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
□Applicable Not applicable
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
□Applicable Not applicable
There was 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
Applicable □Not applicable
Since January 1, 2023, 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 deferred
income tax related to assets and liabilities arising from individual transactions that are not exempted from initial
recognition, and adjusted the individual transactions that are subject to this provision between the beginning of the
earliest presentation period of the financial statements when the provision is first implemented and the first
95 / 269
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implementation date. In case of taxable temporary differences and deductible temporary differences arising from
the lease liabilities and right-of-use assets recognized due to the application of the provisions at the beginning of
the earliest presentation period of the financial statements when the provisions are first implemented, as well as
the estimated liabilities related to the recognized disposal obligation and the corresponding related assets, the
accumulated impacted number will be adjusted according to the provisions of the provisions and the Accounting
Standards for Business Enterprises No.18-Income Tax to present the beginning retained earnings of the earliest
presentation period of the financial statements and other related financial statement items.
VII. Explanation of Changes in the Scope of Consolidated Statements Compared with the
Financial Report of the Previous Year
Applicable □Not applicable
Acquisition and disposal methods during the reporting
Company name
period
Zhoushan ZPC Sales Co., Ltd. Newly established
Ningbo ZPC Sales Co., Ltd. Newly established
Zhejiang ZPC Power Generation Co., Ltd. Newly established
Rongsheng Energy (Zhoushan) Co., Ltd. Newly established
Zhejiang Rongshen New Materials Co., Ltd. Newly established
Zhejiang Shengcheng New Materials Co., Ltd. Newly established
Zhejiang Huiyu New Materials Co., Ltd. Newly established
Zhoushan Yushan Petrochemical Engineering Co., Ltd. Transfer
VIII. Appointment and Dismissal of Accounting Firm
The accounting firm employed currently
Pan-China Certified Public Accountants (Special
Name of domestic accounting firm
General Partnership)
Remuneration of domestic accounting firms (RMB 10,000) 800
Consecutive audit services year of domestic accounting firm 18
Name of the certified public accountant of a domestic accounting
Jia Chuan, Xu Haihong
firm
Consecutive audit services year of the certified public accountant
4, 3 year(s)
of a domestic accounting firm
Whether the accounting firm was reappointed during the period
□Yes No
Engagement of internal control audit accounting firms, financial advisers or sponsors
□Applicable Not applicable
IX. Delisting after the disclosure of the Annual Report
□Applicable Not applicable
96 / 269
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X. Matters related to bankruptcy and reorganization
□Applicable Not applicable
The Company did not have any matters related to bankruptcy or reorganization during the reporting period.
XI. Major litigation and arbitration matters
□Applicable Not applicable
The Company had no major litigation and arbitration during the reporting period.
XII. Punishment and rectification
Applicable □Not applicable
Type of
Discl
investig Disclosure
Name Type Reason Conclusion osure
ation/pe reference
date
nalty
Rongsheng The For details, please
Others Zhejiang
Petrochemical Co., Ltd. supervision refer to the
Securities
and Announcement on
Li Shuirong Director Regulatory
management the Company and
Bureau found in
Xiang Jiongjiong Director measure of Relevant Personnel
the on-site
issuing a Receiving a Warning
Quan Weiying Director inspection that
warning Janua Letter from Zhejiang
the company had
Others letter was ry 17, Securities
irregularities in
taken and 2023 Regulatory Bureau
the recognition of
recorded in (Announcement No.
revenue from
Senior the integrity 2023-002) on the
Wang Yafang trading business
management archives of Juchao Information
and in accounting
securities Network
treatment in
and futures (www.cninfo.com.cn
2020-2021.
markets. ).
Description of the rectification
Applicable □Not applicable
After receiving the Warning Letter, the Company and the relevant personnel attach great importance to the
problems pointed out wherein, strictly in accordance with the requirements of the Zhejiang Securities
Regulatory Bureau, fully learn from the lessons, continue to strengthen the study of securities laws and
regulations, establish and improve and strictly implement the financial and accounting management system,
enhance the management of disclosure affairs, and improve the awareness of standardized operation; and to
effectively exercise diligence and duty in order to facilitate the standardized operation of the Company and
ensure that the disclosure of information is true, accurate, complete, timely and fair, thereby safeguarding the
interests of the Company and all shareholders and promoting the Company’s healthy, stable and sustainable
development.
XIII. Integrity of the Company and its controlling shareholders and actual controllers
□Applicable Not applicable
97 / 269
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XIV. Major Related Transactions
1. Related party transactions related to daily operations
Applicable □Not applicable
Pricing
Content Price Amount Proporti Settleme Available
Type of principle Trading Exceed
s of of of related on to nt of market
Relati related s of limit the
Related related related party similar related price for Disclosur
onshi party related approved approved Disclosure reference
party party party transacti transacti party similar e date
p transact party (RMB limit or
transact transa on (RMB on transacti transacti
ion transacti 10,000) not
ion ction 10,000) amount on on
on
Banker’s
Coal http://www.cninfo.com.cn/new/dis
acceptanc
Rongsh Parent Purchas and closure/detail?stockCode=002493
Market Market 1,525,111 e bill, Market April 20,
eng compa e of other 100.00% 1,600,000 No &announcementId=1216478196&
price price .48 spot price 2023
Holding ny goods material orgId=9900015502&announcemen
exchange,
s tTime=2023-04-20
etc.
Crude http://www.cninfo.com.cn/new/dis
Share Letter of
Purchas oil, closure/detail?stockCode=002493
Saudi holder Market Market 6,788,629 credit, Market April 20,
e of naphtha, 32.10% 7,100,000 No &announcementId=1216478196&
Aramco compa price price .16 spot price 2023
goods ethylene orgId=9900015502&announcemen
ny exchange
glycol tTime=2023-04-20
Banker’s
http://www.cninfo.com.cn/new/dis
Associ acceptanc
Zhejian closure/detail?stockCode=002493
ated Sales of PTA、 Market Market 908,673.2 e bill, Market April 20,
g 5.19% 1,500,000 No &announcementId=1216478196&
enterp goods PX price price 2 spot price 2023
Yisheng orgId=9900015502&announcemen
rise exchange,
tTime=2023-04-20
etc.
9,222,413 10,200,00
Total -- -- -- -- -- -- -- --
.86 0
Details of return of large sales N/A
Actual performance during the reporting period where the total amount of daily related
None
party transactions to occur in the current period is estimated by category (if any)
Reasons for substantial differences between the transaction price and market reference
N/A
price (if applicable)
98 / 269
Full Text of 2023 Annual Report
2. Related party transactions arising from the acquisition and sale of assets or equity
□Applicable Not applicable
The Company had no related transactions related to the acquisition or sales of assets or equity during the reporting
period.
3. Related-party transactions for outward joint investment
□Applicable Not applicable
The Company had no related transactions related to joint outward investment during the reporting period.
4. Related transactions on credit and debt
□Applicable Not applicable
The Company had no related transactions on credit and debt during the reporting period.
5. Transactions with financial companies with associated relationships
□Applicable Not applicable
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
□Applicable Not applicable
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
□Applicable Not applicable
There were no other major related transactions during the reporting period.
XV. Material Contracts and Their Performance
1. Trusteeship, contracting and leasing
(1) Entrustment
□Applicable Not applicable
The Company had no entrustment during the reporting period.
(2) Contracting
□Applicable Not applicable
There was no contracting during the reporting period.
99 / 269
Full Text of 2023 Annual Report
(3) Lease
□Applicable Not applicable
There was no leasing during the reporting period.
2. Major guarantee
Applicable □Not applicable
Unit：RMB 10,000
Guarantees of the Company to its subsidiaries
Date of disclosure
Related
Name of of announcement Amount Counter-
Guarantee Date of actual Type of Collateral Period of Completed or party
guaranteed relating to of actual guarantees
amount occurrence guarantee (if any) guarantee not guarantee
party guarantee guarantee (if any)
or not
amount
Shengyuan December 14, Joint liability January 21,
5,380,000 July 21, 2023 50 No Yes
Chemical Fiber 2022 guarantee 2024
Shengyuan December 14, Joint liability February 10,
5,380,000 February 10, 2023 10,500 No Yes
Chemical Fiber 2022 guarantee 2024
Shengyuan December 14, Joint liability March 15,
5,380,000 March 16, 2023 10,000 No Yes
Chemical Fiber 2022 guarantee 2024
Shengyuan December 14, Joint liability March 24,
5,380,000 March 24, 2023 50 No Yes
Chemical Fiber 2022 guarantee 2024
Shengyuan December 14, Joint liability April 24,
5,380,000 March 24, 2023 6,900 No Yes
Chemical Fiber 2022 guarantee 2024
Shengyuan December 14, Joint liability
5,380,000 July 21, 2023 50 July 21, 2024 No Yes
Chemical Fiber 2022 guarantee
Shengyuan December 14, Joint liability August 21,
5,380,000 July 21, 2023 9,900 No Yes
Chemical Fiber 2022 guarantee 2024
Shengyuan December 14, Joint liability March 21,
5,380,000 May 10, 2023 10,000 No Yes
Chemical Fiber 2022 guarantee 2024
Zhongjin December 14, December 09, Joint liability January 05,
5,380,000 9,000 No Yes
Petrochemical 2022 2022 guarantee 2024
100 / 269
Full Text of 2023 Annual Report
Zhongjin December 14, Joint liability April 25,
5,380,000 October 31, 2023 2,000 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability October 25,
5,380,000 October 31, 2023 2,000 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability November
5,380,000 October 31, 2023 36,000 No Yes
Petrochemical 2022 guarantee 23, 2024
Zhongjin December 14, Joint liability April 10,
5,380,000 October 19, 2023 16,794.4 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability April 10,
5,380,000 October 19, 2023 8,129.25 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability May 31,
5,380,000 June 05, 2023 10 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability
5,380,000 June 05, 2023 27,980 July 02, 2024 No Yes
Petrochemical 2022 guarantee
Zhongjin December 14, Joint liability February 27,
5,380,000 February 28, 2023 33,000 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability April 02,
5,380,000 April 03, 2023 17,000 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability May 24,
5,380,000 July 12, 2023 29,800 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability May 24,
5,380,000 July 25, 2023 20,200 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability May 24,
5,380,000 July 25, 2023 30,000 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability January 24,
5,380,000 February 01, 2023 20,000 No Yes
Petrochemical 2022 guarantee 2025
Zhongjin December 14, Joint liability February 06,
5,380,000 February 07, 2023 35,000 No Yes
Petrochemical 2022 guarantee 2025
Zhongjin December 14, Joint liability February 28,
5,380,000 March 14, 2023 13,724.4 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability February 09,
5,380,000 August 09, 2023 60,000 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, December 08, Joint liability December
5,380,000 49,850 No Yes
Petrochemical 2022 2022 guarantee 08, 2024
101 / 269
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Zhongjin December 14, December 08, Joint liability June 08,
5,380,000 50 No Yes
Petrochemical 2022 2022 guarantee 2024
Zhongjin December 14, Joint liability May 24,
5,380,000 May 24, 2023 37,400 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability May 26,
5,380,000 May 26, 2023 38,000 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability June 01,
5,380,000 June 01, 2023 6,200 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability June 07,
5,380,000 June 07, 2023 8,300 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability June 13,
5,380,000 June 13, 2023 27,000 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability June 13,
5,380,000 June 13, 2023 7,000 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability June 28,
5,380,000 June 28, 2023 3,500 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, Joint liability
5,380,000 July 03, 2023 48,890 July 03, 2024 No Yes
Petrochemical 2022 guarantee
Zhongjin December 14, Joint liability August 14,
5,380,000 August 14, 2023 53,610 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, December 21, Joint liability June 18,
5,380,000 18,949.18 No Yes
Petrochemical 2022 2023 guarantee 2024
Zhongjin December 14, December 25, Joint liability June 22,
5,380,000 12,276 No Yes
Petrochemical 2022 2023 guarantee 2024
Zhongjin December 14, November 06, Joint liability January 02,
5,380,000 19,201.38 No Yes
Petrochemical 2022 2023 guarantee 2024
Zhongjin December 14, Joint liability February 05,
5,380,000 August 07, 2023 7,392 No Yes
Petrochemical 2022 guarantee 2024
Zhongjin December 14, December 13, Joint liability May 09,
5,380,000 13,200 No Yes
Petrochemical 2022 2023 guarantee 2024
Zhongjin December 14, December 22, Joint liability February 17,
5,380,000 49,500 No Yes
Petrochemical 2022 2023 guarantee 2024
Zhongjin December 14, Joint liability January 22,
5,380,000 August 03, 2023 18,150 No Yes
Petrochemical 2022 guarantee 2024
102 / 269
Full Text of 2023 Annual Report
Zhongjin December 14, Joint liability March 26,
5,380,000 October 19, 2023 49,500 No Yes
Petrochemical 2022 guarantee 2024
December 14, Joint liability February 06,
Yisheng Dahua 5,380,000 March 10, 2023 9,039.92 No Yes
2022 guarantee 2024
December 14, Joint liability June 19,
Yisheng Dahua 5,380,000 June 28, 2023 16,800 No Yes
2022 guarantee 2024
December 14, Joint liability
Yisheng Dahua 5,380,000 July 25, 2023 14,400 July 12, 2024 No Yes
2022 guarantee
December 14, Joint liability
Yisheng Dahua 5,380,000 July 27, 2023 19,200 July 19, 2024 No Yes
2022 guarantee
December 14, Joint liability June 22,
Yisheng Dahua 5,380,000 June 27, 2022 22,000 No Yes
2022 guarantee 2024
December 14, Joint liability May 22,
Yisheng Dahua 5,380,000 May 24, 2023 20,000 No Yes
2022 guarantee 2025
December 14, Joint liability June 06,
Yisheng Dahua 5,380,000 June 15, 2023 33,000 No Yes
2022 guarantee 2025
December 14, December 18, Joint liability January 19,
Yisheng Dahua 5,380,000 6,525.82 No Yes
2022 2023 guarantee 2024
December 14, December 28, Joint liability January 31,
Yisheng Dahua 5,380,000 3,282.99 No Yes
2022 2023 guarantee 2024
December 14, December 28, Joint liability February 03,
Yisheng Dahua 5,380,000 3,282.99 No Yes
2022 2023 guarantee 2024
December 14, December 28, Joint liability January 31,
Yisheng Dahua 5,380,000 3,246.18 No Yes
2022 2023 guarantee 2024
December 14, December 28, Joint liability January 31,
Yisheng Dahua 5,380,000 3,246.18 No Yes
2022 2023 guarantee 2024
December 14, December 28, Joint liability January 29,
Yisheng Dahua 5,380,000 3,346.58 No Yes
2022 2023 guarantee 2024
December 14, December 28, Joint liability January 29,
Yisheng Dahua 5,380,000 3,346.58 No Yes
2022 2023 guarantee 2024
December 14, Joint liability March 10,
Yisheng Dahua 5,380,000 March 16, 2023 18,040.27 No Yes
2022 guarantee 2024
December 14, September 20, Joint liability August 23,
Yisheng Dahua 5,380,000 9,026.4 No Yes
2022 2023 guarantee 2024
103 / 269
Full Text of 2023 Annual Report
Yongsheng December 14, Joint liability January 20,
5,380,000 July 25, 2023 115.84 No Yes
Technology 2022 guarantee 2024
Yongsheng December 14, Joint liability June 15,
5,380,000 March 02, 2021 3,248.12 No Yes
Technology 2022 guarantee 2024
Yongsheng December 14, Joint liability June 15,
5,380,000 June 16, 2021 752 No Yes
Technology 2022 guarantee 2024
Yongsheng December 14, Joint liability June 15,
5,380,000 May 24, 2022 466 No Yes
Technology 2022 guarantee 2024
Yongsheng December 14, Joint liability June 15,
5,380,000 October 14, 2022 85.89 No Yes
Technology 2022 guarantee 2024
Yongsheng December 14, September 26, Joint liability June 15,
5,380,000 172 No Yes
Technology 2022 2023 guarantee 2024
Yongsheng December 14, Joint liability October 24,
5,380,000 October 25, 2023 4,800 No Yes
Technology 2022 guarantee 2024
Yongsheng December 14, Joint liability December
5,380,000 March 02, 2021 3,248.12 No Yes
Technology 2022 guarantee 15, 2024
Yongsheng December 14, Joint liability December
5,380,000 June 16, 2021 752 No Yes
Technology 2022 guarantee 15, 2024
Yongsheng December 14, Joint liability December
5,380,000 May 24, 2022 466 No Yes
Technology 2022 guarantee 15, 2024
Yongsheng December 14, Joint liability December
5,380,000 October 14, 2022 85.89 No Yes
Technology 2022 guarantee 15, 2024
Yongsheng December 14, September 26, Joint liability December
5,380,000 172 No Yes
Technology 2022 2023 guarantee 15, 2024
Yongsheng December 14, Joint liability June 15,
5,380,000 March 02, 2021 5,785.71 No Yes
Technology 2022 guarantee 2025
Yongsheng December 14, Joint liability June 15,
5,380,000 June 16, 2021 1,339 No Yes
Technology 2022 guarantee 2025
Yongsheng December 14, Joint liability June 15,
5,380,000 May 24, 2022 1,164.5 No Yes
Technology 2022 guarantee 2025
Yongsheng December 14, Joint liability June 15,
5,380,000 October 14, 2022 214.71 No Yes
Technology 2022 guarantee 2025
Yongsheng December 14, September 26, Joint liability June 15,
5,380,000 430 No Yes
Technology 2022 2023 guarantee 2025
104 / 269
Full Text of 2023 Annual Report
Yongsheng December 14, Joint liability December
5,380,000 March 02, 2021 5,785.71 No Yes
Technology 2022 guarantee 15, 2025
Yongsheng December 14, Joint liability December
5,380,000 June 16, 2021 1,339 No Yes
Technology 2022 guarantee 15, 2025
Yongsheng December 14, Joint liability December
5,380,000 May 24, 2022 1,164.5 No Yes
Technology 2022 guarantee 15, 2025
Yongsheng December 14, Joint liability December
5,380,000 October 14, 2022 214.71 No Yes
Technology 2022 guarantee 15, 2025
Yongsheng December 14, September 26, Joint liability December
5,380,000 430 No Yes
Technology 2022 2023 guarantee 15, 2025
Yongsheng December 14, Joint liability June 15,
5,380,000 May 24, 2022 2,370 No Yes
Technology 2022 guarantee 2026
Yongsheng December 14, Joint liability June 15,
5,380,000 October 14, 2022 436.92 No Yes
Technology 2022 guarantee 2026
Yongsheng December 14, September 26, Joint liability June 15,
5,380,000 874 No Yes
Technology 2022 2023 guarantee 2026
Yongsheng December 14, Joint liability December
5,380,000 May 24, 2022 2,369 No Yes
Technology 2022 guarantee 15, 2026
Yongsheng December 14, Joint liability December
5,380,000 October 14, 2022 436.89 No Yes
Technology 2022 guarantee 15, 2026
Yongsheng December 14, September 26, Joint liability December
5,380,000 872 No Yes
Technology 2022 2023 guarantee 15, 2026
Yongsheng December 14, Joint liability May 15,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2024
Yongsheng December 14, Joint liability November
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 15, 2024
Yongsheng December 14, Joint liability May 15,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2025
Yongsheng December 14, Joint liability November
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 17, 2025
Yongsheng December 14, Joint liability May 15,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2026
Yongsheng December 14, Joint liability November
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 16, 2026
105 / 269
Full Text of 2023 Annual Report
Yongsheng December 14, Joint liability May 17,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2027
Yongsheng December 14, Joint liability November
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 15, 2027
Yongsheng December 14, Joint liability May 15,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2028
Yongsheng December 14, Joint liability November
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 15, 2028
Yongsheng December 14, Joint liability May 15,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2029
Yongsheng December 14, Joint liability November
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 15, 2029
Yongsheng December 14, Joint liability May 15,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2030
Yongsheng December 14, Joint liability November
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 15, 2030
Yongsheng December 14, Joint liability May 15,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2031
Yongsheng December 14, Joint liability November
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 16, 2031
Yongsheng December 14, Joint liability May 17,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2032
Yongsheng December 14, Joint liability November
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 15, 2032
Yongsheng December 14, Joint liability May 16,
5,380,000 June 06, 2022 2,514.64 No Yes
Technology 2022 guarantee 2033
Yongsheng December 14, Joint liability June 03,
5,380,000 June 12, 2023 5,000 No Yes
Technology 2022 guarantee 2024
December 14, Joint liability
ZPC 6,260,000 July 31, 2018 255,000 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 10, 2018 90,574.47 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 18, 2019 57,375 July 30, 2030 No Yes
2022 guarantee
106 / 269
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December 14, Joint liability
ZPC 6,260,000 August 03, 2018 11,060.88 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 08, 2018 16,903.03 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 09, 2018 18,158.55 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 09, 2018 27,236.81 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 10, 2018 4,596.38 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 10, 2018 9,078.54 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 13, 2018 3,362.43 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 16, 2018 31,947.42 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 15, 2018 6,726.9 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 31, 2018 25,500 July 30, 2030 No Yes
2022 guarantee
December 14, September 29, Joint liability
ZPC 6,260,000 34,560.15 July 30, 2030 No Yes
2022 2018 guarantee
December 14, Joint liability
ZPC 6,260,000 October 23, 2018 55,466.84 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 October 26, 2018 10,083.72 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 October 30, 2018 4,707.4 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 October 31, 2018 20,178.66 July 30, 2030 No Yes
2022 guarantee
December 14, November 07, Joint liability
ZPC 6,260,000 6,422.72 July 30, 2030 No Yes
2022 2018 guarantee
December 14, November 08, Joint liability
ZPC 6,260,000 13,113.44 July 30, 2030 No Yes
2022 2018 guarantee
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December 14, November 08, Joint liability
ZPC 6,260,000 9,754.26 July 30, 2030 No Yes
2022 2018 guarantee
December 14, Joint liability
ZPC 6,260,000 August 03, 2018 4,742.49 July 30, 2030 No Yes
2022 guarantee
December 14, November 09, Joint liability
ZPC 6,260,000 16,004.82 July 30, 2030 No Yes
2022 2018 guarantee
December 14, Joint liability
ZPC 6,260,000 January 01, 2019 24,532.53 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 03, 2019 16,810.62 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 04, 2019 2,689.94 July 30, 2030 No Yes
2022 guarantee
December 14, November 09, Joint liability
ZPC 6,260,000 6,860.52 July 30, 2030 No Yes
2022 2018 guarantee
December 14, Joint liability
ZPC 6,260,000 January 04, 2019 11,768.76 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 04, 2019 93,840 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 08, 2019 6,389.79 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 09, 2019 16,798.13 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 10, 2019 8,406.05 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 14, 2019 4,056.46 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 15, 2019 12,109.44 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 30, 2019 65,790 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 31, 2019 13,453.8 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 30, 2019 2,017.46 July 30, 2030 No Yes
2022 guarantee
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December 14, Joint liability
ZPC 6,260,000 February 01, 2019 11,086.13 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 04, 2019 2,692.29 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 01, 2019 7,061.97 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 01, 2019 5,716.12 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 03, 2019 23,543.13 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 11, 2019 3,042.34 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 12, 2019 4,369.68 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 11, 2019 17,925.48 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 27, 2019 46,920 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 01, 2019 7,726.5 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 01, 2019 3,021.75 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 07, 2019 4,706.79 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 07, 2019 11,768.76 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 08, 2019 1,344.97 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 08, 2019 4,034.91 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 12, 2019 3,027.36 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 13, 2019 2,028.23 July 30, 2030 No Yes
2022 guarantee
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December 14, Joint liability
ZPC 6,260,000 March 15, 2019 16,481.16 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 29, 2019 18,360 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 08, 2019 3,359.63 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 10, 2019 672.49 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 11, 2019 1,345.18 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 07, 2019 2,014.5 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 11, 2019 2,355.18 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 12, 2019 5,719.65 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 12, 2019 676.08 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 12, 2019 4,706.79 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 15, 2019 1,681.21 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 01, 2019 7,391.43 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 11, 2019 1,007.25 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 07, 2019 3,765.33 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 07, 2019 17,340 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 07, 2019 7,397.04 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 09, 2019 3,026.18 July 30, 2030 No Yes
2022 guarantee
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December 14, Joint liability
ZPC 6,260,000 May 10, 2019 1,008.73 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 13, 2019 1,690.19 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 13, 2019 2353.55 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 16, 2019 10,761.51 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 30, 2019 51,000 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 01, 2019 4,034.61 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 04, 2019 11,768.47 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 07, 2019 1,611.6 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 05, 2019 6,726.9 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 05, 2019 8,404.9 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 06, 2019 4,034.92 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 06, 2019 35,700 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 06, 2019 3,380.38 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 12, 2019 20,178.66 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 20, 2019 337.11 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 01, 2019 51,000 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 05, 2019 3,698.66 July 30, 2030 No Yes
2022 guarantee
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December 14, Joint liability
ZPC 6,260,000 July 08, 2019 1,344.97 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 08, 2019 1,7850 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 10, 2019 13,453.8 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 10, 2019 4,394.5 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 10, 2019 3,027.36 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 05, 2019 1,679.43 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 10, 2019 2,355.18 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 11, 2019 1,007.25 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 16, 2019 3,359.63 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 16, 2019 6,049.62 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 July 31, 2019 36,989.28 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 02, 2019 6,724.84 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 07, 2019 3,380.38 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 07, 2019 8,240.58 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 August 07, 2019 5,041.86 July 30, 2030 No Yes
2022 guarantee
December 14, September 23, Joint liability
ZPC 6,260,000 3,360.9 July 30, 2030 No Yes
2022 2019 guarantee
December 14, September 23, Joint liability
ZPC 6,260,000 2,696.88 July 30, 2030 No Yes
2022 2019 guarantee
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December 14, September 29, Joint liability
ZPC 6,260,000 44,370 July 30, 2030 No Yes
2022 2019 guarantee
December 14, September 30, Joint liability
ZPC 6,260,000 10,089.33 July 30, 2030 No Yes
2022 2019 guarantee
December 14, Joint liability
ZPC 6,260,000 August 07, 2019 3,533.79 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 October 09, 2019 3,528.18 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 October 21, 2019 9,754.26 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 October 21, 2019 6,382.14 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 October 29, 2019 26,520 July 30, 2030 No Yes
2022 guarantee
December 14, November 15, Joint liability
ZPC 6,260,000 8,411.94 July 30, 2030 No Yes
2022 2019 guarantee
December 14, Joint liability
ZPC 6,260,000 October 09, 2019 1,513.68 July 30, 2030 No Yes
2022 guarantee
December 14, November 18, Joint liability
ZPC 6,260,000 2,825.91 July 30, 2030 No Yes
2022 2019 guarantee
December 14, November 19, Joint liability
ZPC 6,260,000 1,208.7 July 30, 2030 No Yes
2022 2019 guarantee
December 14, November 21, Joint liability
ZPC 6,260,000 74,970 July 30, 2030 No Yes
2022 2019 guarantee
December 14, December 18, Joint liability
ZPC 6,260,000 2,757.06 July 30, 2030 No Yes
2022 2019 guarantee
December 14, December 19, Joint liability
ZPC 6,260,000 4,706.79 July 30, 2030 No Yes
2022 2019 guarantee
December 14, December 24, Joint liability
ZPC 6,260,000 5,047.47 July 30, 2030 No Yes
2022 2019 guarantee
December 14, Joint liability
ZPC 6,260,000 January 16, 2020 6,389.79 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 16, 2020 3,699.54 July 30, 2030 No Yes
2022 guarantee
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December 14, Joint liability
ZPC 6,260,000 January 16, 2020 2,050.2 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 16, 2020 9,754.26 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 January 16, 2020 1,984.41 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 14, 2020 2,352.17 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 February 18, 2020 677.79 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 16, 2020 4,369.68 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 19, 2020 6,726.9 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 March 31, 2020 10,200 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 01, 2020 16,575 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 17, 2020 1,679.43 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 April 17, 2020 2,355.18 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 May 13, 2020 2,040 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 03, 2020 4,034.61 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability
ZPC 6,260,000 June 05, 2020 4,034.61 July 30, 2030 No Yes
2022 guarantee
December 14, Joint liability March 15,
ZPC 6,260,000 July 04, 2023 23,797.18 No Yes
2022 guarantee 2027
December 14, Joint liability November
ZPC 6,260,000 January 20, 2021 77,760 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 20, 2021 288,000 No Yes
2022 guarantee 15, 2032
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December 14, Joint liability November
ZPC 6,260,000 January 20, 2021 126,144 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 20, 2021 24,998.4 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 20, 2021 8,640 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 21, 2021 32,832 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 21, 2021 57,600 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 21, 2021 57,600 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 21, 2021 11,520 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 22, 2021 32,832 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 February 04, 2021 54,720 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 February 05, 2021 43,200 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 February 05, 2021 57,600 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 February 05, 2021 106,560 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 February 05, 2021 65,664 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 February 07, 2021 32,832 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 March 18, 2021 12,096 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 March 18, 2021 20,528.64 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 March 22, 2021 57,600 No Yes
2022 guarantee 15, 2032
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December 14, Joint liability November
ZPC 6,260,000 March 22, 2021 57,600 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 March 25, 2021 28,800 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 March 26, 2021 144,000 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 March 26, 2021 46,080 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 April 28, 2021 74,880 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 April 28, 2021 35,712 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 April 28, 2021 28,800 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 April 28, 2021 17,856 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 April 29, 2021 46,080 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 April 30, 2021 2,880 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 April 30, 2021 2,880 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 July 06, 2021 23,040 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 July 06, 2021 40,320 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 July 06, 2021 83,520 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 July 06, 2021 83,520 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 July 06, 2021 86,400 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 July 06, 2021 172,800 No Yes
2022 guarantee 15, 2032
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December 14, Joint liability November
ZPC 6,260,000 July 06, 2021 23,040 No Yes
2022 guarantee 15, 2032
December 14, November 15, Joint liability November
ZPC 6,260,000 58,152.96 No Yes
2022 2021 guarantee 15, 2032
December 14, September 17, Joint liability November
ZPC 6,260,000 22,464 No Yes
2022 2021 guarantee 15, 2032
December 14, September 17, Joint liability November
ZPC 6,260,000 46,080 No Yes
2022 2021 guarantee 15, 2032
December 14, September 17, Joint liability November
ZPC 6,260,000 118,080 No Yes
2022 2021 guarantee 15, 2032
December 14, September 22, Joint liability November
ZPC 6,260,000 19,008 No Yes
2022 2021 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 July 11, 2022 195.84 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 August 02, 2022 126.72 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 August 04, 2022 218.88 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 August 09, 2022 69.12 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 August 10, 2022 8.64 No Yes
2022 guarantee 15, 2032
December 14, September 05, Joint liability November
ZPC 6,260,000 296.64 No Yes
2022 2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 October 10, 2022 236.16 No Yes
2022 guarantee 15, 2032
December 14, November 01, Joint liability November
ZPC 6,260,000 253.44 No Yes
2022 2022 guarantee 15, 2032
December 14, December 16, Joint liability November
ZPC 6,260,000 40.32 No Yes
2022 2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 20, 2021 22,752 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 February 05, 2021 40,320 No Yes
2022 guarantee 15, 2032
117 / 269
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December 14, Joint liability November
ZPC 6,260,000 March 19, 2021 28,800 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 April 28, 2021 17,280 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 July 05, 2021 28,800 No Yes
2022 guarantee 15, 2032
December 14, September 17, Joint liability November
ZPC 6,260,000 23,040 No Yes
2022 2021 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 June 13, 2022 9,216 No Yes
2022 guarantee 15, 2032
December 14, December 27, Joint liability November
ZPC 6,260,000 4,608 No Yes
2022 2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 January 20, 2021 86,400 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 February 05, 2021 17,280 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 March 19, 2021 34,560 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 June 29, 2021 57,600 No Yes
2022 guarantee 15, 2032
December 14, Joint liability November
ZPC 6,260,000 July 05, 2021 190,080 No Yes
2022 guarantee 15, 2032
December 14, Joint liability
ZPC 6,260,000 July 29, 2021 1,508.02 July 15, 2024 No Yes
2022 guarantee
December 14, Joint liability January 01,
ZPC 6,260,000 April 07, 2021 4.66 No Yes
2022 guarantee 2024
December 14, September 18, Joint liability January 01,
ZPC 6,260,000 161.49 No Yes
2022 2021 guarantee 2024
December 14, Joint liability January 01,
ZPC 6,260,000 October 22, 2021 39.95 No Yes
2022 guarantee 2024
December 14, November 02, Joint liability January 01,
ZPC 6,260,000 9.12 No Yes
2022 2021 guarantee 2024
December 14, November 18, Joint liability January 01,
ZPC 6,260,000 0.4 No Yes
2022 2021 guarantee 2024
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December 14, November 26, Joint liability January 01,
ZPC 6,260,000 299.22 No Yes
2022 2021 guarantee 2024
December 14, December 03, Joint liability January 01,
ZPC 6,260,000 39.61 No Yes
2022 2021 guarantee 2024
December 14, December 24, Joint liability January 01,
ZPC 6,260,000 10.02 No Yes
2022 2021 guarantee 2024
December 14, Joint liability April 20,
ZPC 6,260,000 January 21, 2022 122.6 No Yes
2022 guarantee 2024
December 14, Joint liability May 20,
ZPC 6,260,000 April 28, 2022 33.01 No Yes
2022 guarantee 2024
December 14, Joint liability January 01,
ZPC 6,260,000 May 17, 2022 61.3 No Yes
2022 guarantee 2024
December 14, September 05, Joint liability January 31,
ZPC 6,260,000 449.84 No Yes
2022 2022 guarantee 2026
December 14, September 08, Joint liability January 31,
ZPC 6,260,000 3,003.89 No Yes
2022 2022 guarantee 2025
December 14, Joint liability January 01,
ZPC 6,260,000 October 12, 2022 58.94 No Yes
2022 guarantee 2024
December 14, Joint liability January 01,
ZPC 6,260,000 June 06, 2019 1,080.21 No Yes
2022 guarantee 2024
Total balance of guarantees
Total limits of guarantees to subsidiaries
actually provided to
approved at the end of the reporting 11,640,000 6,078,373.8
subsidiaries at the end of the
period (B3)
reporting period (B4)
Guarantees of the subsidiaries to their subsidiaries
Date of disclosure
Related
Name of of announcement Amount Counter-
Guarantee Date of actual Type of Collateral Period of Completed or party
guaranteed relating to of actual guarantees
amount occurrence guarantee (if any) guarantee not guarantee
party guarantee guarantee (if any)
or not
amount
December 24, November 23, Joint liability May 23,
Yisheng Dahua 162,000 4.48 No Yes
2022 2023 guarantee 2024
December 24, December 21, Joint liability June 21,
Yisheng Dahua 162,000 30.85 No Yes
2022 2023 guarantee 2024
Yisheng Dahua December 24, 162,000 December 21, 83.47 Joint liability June 21, No Yes
119 / 269
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2022 2023 guarantee 2024
December 24, December 21, Joint liability June 21,
Yisheng Dahua 162,000 86.26 No Yes
2022 2023 guarantee 2024
December 24, December 21, Joint liability June 21,
Yisheng Dahua 162,000 149.99 No Yes
2022 2023 guarantee 2024
December 24, December 21, Joint liability June 21,
Yisheng Dahua 162,000 24 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 121.06 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 241.67 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 181.29 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 8.47 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 274.98 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 359.35 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 38.34 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 48 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 48 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 48 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 48 No Yes
2022 2023 guarantee 2024
December 24, December 26, Joint liability June 26,
Yisheng Dahua 162,000 37.15 No Yes
2022 2023 guarantee 2024
December 24, Joint liability February 16,
Yisheng Dahua 162,000 August 16, 2023 42 No Yes
2022 guarantee 2024
Yisheng Dahua December 24, 162,000 August 16, 2023 42 Joint liability February 16, No Yes
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2022 guarantee 2024
December 24, Joint liability February 16,
Yisheng Dahua 162,000 August 16, 2023 30.23 No Yes
2022 guarantee 2024
December 24, Joint liability February 16,
Yisheng Dahua 162,000 August 16, 2023 43.56 No Yes
2022 guarantee 2024
December 24, Joint liability February 16,
Yisheng Dahua 162,000 August 16, 2023 203.84 No Yes
2022 guarantee 2024
December 24, Joint liability February 16,
Yisheng Dahua 162,000 August 16, 2023 62.31 No Yes
2022 guarantee 2024
December 24, Joint liability February 16,
Yisheng Dahua 162,000 August 16, 2023 190.39 No Yes
2022 guarantee 2024
December 24, Joint liability February 16,
Yisheng Dahua 162,000 August 16, 2023 31.84 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 6.03 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 70.01 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 289.35 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 139.66 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 115.91 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 14.47 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 179.14 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 31.13 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability February 23,
Yisheng Dahua 162,000 August 23, 2023 140 No Yes
2022 guarantee 2024
Yisheng Dahua December 24, 162,000 August 23, 2023 140 Joint liability February 23, No Yes
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2022 guarantee 2024
December 24, September 01, Joint liability March 01,
Yisheng Dahua 162,000 1,839.4 No Yes
2022 2023 guarantee 2024
December 24, September 01, Joint liability March 01,
Yisheng Dahua 162,000 3,239.4 No Yes
2022 2023 guarantee 2024
December 24, September 05, Joint liability March 05,
Yisheng Dahua 162,000 13.5 No Yes
2022 2023 guarantee 2024
December 24, September 05, Joint liability March 05,
Yisheng Dahua 162,000 202.94 No Yes
2022 2023 guarantee 2024
December 24, September 05, Joint liability March 05,
Yisheng Dahua 162,000 274.15 No Yes
2022 2023 guarantee 2024
December 24, September 05, Joint liability March 05,
Yisheng Dahua 162,000 97.16 No Yes
2022 2023 guarantee 2024
December 24, September 07, Joint liability March 07,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 07, Joint liability March 07,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 07, Joint liability March 07,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 07, Joint liability March 07,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 07, Joint liability March 07,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 07, Joint liability March 07,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 14, Joint liability March 14,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 14, Joint liability March 14,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 14, Joint liability March 14,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 20, Joint liability March 20,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
Yisheng Dahua December 24, 162,000 September 20, 140 Joint liability March 20, No Yes
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2022 2023 guarantee 2024
December 24, September 20, Joint liability March 20,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 20, Joint liability March 20,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, September 22, Joint liability March 22,
Yisheng Dahua 162,000 66.58 No Yes
2022 2023 guarantee 2024
December 24, September 22, Joint liability March 22,
Yisheng Dahua 162,000 167.49 No Yes
2022 2023 guarantee 2024
December 24, September 22, Joint liability March 22,
Yisheng Dahua 162,000 318.31 No Yes
2022 2023 guarantee 2024
December 24, September 22, Joint liability March 22,
Yisheng Dahua 162,000 239.79 No Yes
2022 2023 guarantee 2024
December 24, September 22, Joint liability March 22,
Yisheng Dahua 162,000 14.07 No Yes
2022 2023 guarantee 2024
December 24, September 22, Joint liability March 22,
Yisheng Dahua 162,000 106.86 No Yes
2022 2023 guarantee 2024
December 24, September 22, Joint liability March 22,
Yisheng Dahua 162,000 7.29 No Yes
2022 2023 guarantee 2024
December 24, Joint liability April 08,
Yisheng Dahua 162,000 October 08, 2023 13.5 No Yes
2022 guarantee 2024
December 24, Joint liability April 08,
Yisheng Dahua 162,000 October 08, 2023 212.56 No Yes
2022 guarantee 2024
December 24, Joint liability April 08,
Yisheng Dahua 162,000 October 08, 2023 95.26 No Yes
2022 guarantee 2024
December 24, Joint liability April 08,
Yisheng Dahua 162,000 October 08, 2023 36.53 No Yes
2022 guarantee 2024
December 24, Joint liability April 08,
Yisheng Dahua 162,000 October 08, 2023 92.8 No Yes
2022 guarantee 2024
December 24, Joint liability April 08,
Yisheng Dahua 162,000 October 08, 2023 87.37 No Yes
2022 guarantee 2024
December 24, Joint liability April 08,
Yisheng Dahua 162,000 October 08, 2023 155.23 No Yes
2022 guarantee 2024
Yisheng Dahua December 24, 162,000 October 12, 2023 2660 Joint liability April 12, No Yes
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2022 guarantee 2024
December 24, Joint liability April 12,
Yisheng Dahua 162,000 October 12, 2023 3,433.89 No Yes
2022 guarantee 2024
December 24, Joint liability April 17,
Yisheng Dahua 162,000 October 17, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability April 17,
Yisheng Dahua 162,000 October 17, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability April 17,
Yisheng Dahua 162,000 October 17, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability April 17,
Yisheng Dahua 162,000 October 17, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability April 17,
Yisheng Dahua 162,000 October 17, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 37.44 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 90.4 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 118.19 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 154.48 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 177.19 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 6.08 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 7.36 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 97.14 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 283.68 No Yes
2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 53.85 No Yes
2022 guarantee 2024
Yisheng Dahua December 24, 162,000 October 24, 2023 66.27 Joint liability April 24, No Yes
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2022 guarantee 2024
December 24, Joint liability April 24,
Yisheng Dahua 162,000 October 24, 2023 74.56 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 140 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 71.26 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 42 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 42 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 42 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 42 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 29.87 No Yes
2022 guarantee 2024
December 24, Joint liability April 25,
Yisheng Dahua 162,000 October 25, 2023 25.05 No Yes
2022 guarantee 2024
December 24, November 06, Joint liability May 06,
Yisheng Dahua 162,000 88.64 No Yes
2022 2023 guarantee 2024
December 24, November 06, Joint liability May 06,
Yisheng Dahua 162,000 60.26 No Yes
2022 2023 guarantee 2024
December 24, November 06, Joint liability May 06,
Yisheng Dahua 162,000 31.75 No Yes
2022 2023 guarantee 2024
December 24, November 06, Joint liability May 06,
Yisheng Dahua 162,000 6.13 No Yes
2022 2023 guarantee 2024
Yisheng Dahua December 24, 162,000 November 06, 33.14 Joint liability May 06, No Yes
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2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 09, Joint liability May 09,
Yisheng Dahua 162,000 140 No Yes
2022 2023 guarantee 2024
December 24, November 16, Joint liability February 16,
Yisheng Dahua 162,000 2,100 No Yes
2022 2023 guarantee 2024
December 24, November 16, Joint liability February 16,
Yisheng Dahua 162,000 1,554 No Yes
2022 2023 guarantee 2024
December 24, November 17, Joint liability May 17,
Yisheng Dahua 162,000 3,096.72 No Yes
2022 2023 guarantee 2024
December 24, November 20, Joint liability May 20,
Yisheng Dahua 162,000 21.04 No Yes
2022 2023 guarantee 2024
December 24, November 20, Joint liability May 20,
Yisheng Dahua 162,000 31.81 No Yes
2022 2023 guarantee 2024
December 24, November 20, Joint liability May 20,
Yisheng Dahua 162,000 6.13 No Yes
2022 2023 guarantee 2024
Yisheng Dahua December 24, 162,000 November 20, 157.25 Joint liability May 20, No Yes
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2022 2023 guarantee 2024
December 24, November 20, Joint liability May 20,
Yisheng Dahua 162,000 177.19 No Yes
2022 2023 guarantee 2024
December 24, November 20, Joint liability May 20,
Yisheng Dahua 162,000 343.51 No Yes
2022 2023 guarantee 2024
December 24, November 20, Joint liability May 20,
Yisheng Dahua 162,000 350 No Yes
2022 2023 guarantee 2024
December 24, November 20, Joint liability May 20,
Yisheng Dahua 162,000 180.79 No Yes
2022 2023 guarantee 2024
December 24, November 20, Joint liability May 20,
Yisheng Dahua 162,000 398.34 No Yes
2022 2023 guarantee 2024
December 24, November 20, Joint liability May 20,
Yisheng Dahua 162,000 136.53 No Yes
2022 2023 guarantee 2024
December 24, September 20, Joint liability March 18,
Yisheng Dahua 162,000 10,000 No Yes
2022 2023 guarantee 2024
December 24, November 13, Joint liability February 09,
Yisheng Dahua 162,000 3,845.91 No Yes
2022 2023 guarantee 2024
December 24, November 20, Joint liability March 08,
Yisheng Dahua 162,000 2,101.05 No Yes
2022 2023 guarantee 2024
December 24, Joint liability March 25,
Yisheng Dahua 162,000 March 31, 2023 1,957.6 No Yes
2022 guarantee 2024
Total balance of guarantees
Total limits of guarantees to subsidiaries
actually provided to
approved at the end of the reporting 162,000 49,737.92
subsidiaries at the end of the
period (C3)
reporting period (C4)
Total amount of guarantees of the Company (Including the above three mentioned guarantees)
Total balance of guarantees
Total limits of guarantees approved at
actually provided at the end of
the end of the reporting period 11,802,000 6,128,111.72
the reporting period
(A3+B3+C3)
(A4+B4+C4)
Proportion of total amount of guarantees (i.e. A4+B4+C4) in net assets of the
138.22%
Company
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3. Situation of others entrusted for cash asset management
(1) Entrusted asset management
□Applicable Not applicable
There was entrust finance during the reporting period.
(2) Entrusted loans
□Applicable Not applicable
The Company had no entrusted loans during the reporting period.
4. Other major contracts
□Applicable Not applicable
There were no other major contracts during the reporting period.
XVI. Description of other major matters
□Applicable Not applicable
No other important events to be described during the reporting period.
XVII. Major Matters of the Company’s Subsidiaries
Applicable □Not applicable
Ningbo Zhongjin Petrochemical Co., Ltd., a wholly-owned subsidiary of the Company, applied to Ningbo
Branch of China Pacific Property Insurance Co., Ltd. for a tariff guarantee insurance coverage of not more than
RMB 585 million for a guarantee period from March 1, 2024 to March 1, 2025, and the Company will provide
joint liability guarantee for it, which is subject to the letter of guarantee signed by both parties.
At the end of June 2023, Zhejiang Petroleum & Chemical Co., Ltd., a subsidiary of the Company, transferred
all its 100% equity of Zhoushan Yushan Petrochemical Engineering Co., Ltd. to Zhoushan Green Petrochemical
Park Management Co., Ltd.
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Full Text of 2023 Annual Report
Section VII Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Increase or
Before the change After this change
decrease (+, -)
Number Ratio Subtotal Number Ratio
I. Restricted shares 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
627,243,750 6.19% 627,243,750 6.19%
domestic capital
Including: Shares held by
domestic legal persons
Shares held by domestic
627,243,750 6.19% 627,243,750 6.19%
natural persons
4. Shares held by foreign
investors
Including: Shares held by
foreign legal persons
Shares held by foreign
natural persons
II. Shares without sales
9,498,281,250 93.81% 9,498,281,250 93.81%
restrictions
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%
Reasons for share changes
□Applicable Not applicable
Approval of share changes
□Applicable Not applicable
Transfers of share changes
□Applicable Not applicable
Effect of share changes on financial indicators such as basic and diluted earnings per share and net assets per share
attributable to the Company’s common shareholders for the most recent year and the most recent period
□Applicable Not applicable
Other disclosures deemed necessary by the Company or required by securities regulators
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Full Text of 2023 Annual Report
□Applicable Not applicable
2. Changes in restricted shares
□Applicable Not applicable
II. Issuance and Listing of Securities
1. Issuance of securities (excluding preferred shares) during the reporting period
□Applicable Not applicable
2. Explanation of changes in the total number of shares and shareholder structure of the Company, and
changes in the structure of the Company's assets and liabilities
□Applicable Not applicable
3. Existing internal employee shares
□Applicable Not applicable
III. Shareholders and Actual Controllers
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1. Number and shareholding of the company's shareholders
Unit: share
Total number of
Total number of
common
shareholders of
shareholders at Total number of preferred
Total number of preferred shares
the end of the shareholders whose voting rights
common shareholders with restored
105,062 last month 100,234 0 were restored at the end of last 0
at the end of the voting rights
before the month before the disclosure date of
reporting period at the end of the
disclosure date annual report (if any)
reporting period
of the annual
(if any)
report
Shareholdings of shareholders holding over 5% of shares or the top 10 shareholders (excluding shares lent through refinancing)
Number of Increase and Number of Number of Pledge, marking or freezing
Nature of Shareholding shares held at decrease during shares held shares held
Name of shareholders
shareholder ratio the end of the the reporting subject to sales without sales Status of shares Number
report period period restrictions restrictions
Zhejiang Rongsheng Domestic natural
51.46% 5,210,237,480 -1,012,552,501 0 5,210,237,480 N/A 0
Holding Group Co., Ltd. person
Aramco Overseas Foreign legal
10.00% 1,012,552,501 1,012,552,501 0 1,012,552,501 N/A 0
Company B.V. person
Domestic natural
Li Shuirong 6.35% 643,275,000 0 482,456,250 160,818,750 N/A 0
person
Hong Kong Securities
Foreign legal
Clearing Company 1.45% 146,790,511 -13,945,193 0 146,790,511 N/A 0
person
Limited
Domestic natural
Li Guoqing 0.95% 96,525,000 0 72,393,750 24,131,250 N/A 0
person
Domestic natural
Xu Yuejuan 0.95% 96,525,000 0 0 96,525,000 N/A 0
person
Domestic natural
Li Yongqing 0.95% 96,525,000 0 72,393,750 24,131,250 N/A 0
person
Horizon Asset - Huaneng
Trust Jiayue No. 7
Single Fund Trust - Others 0.54% 55,148,287 -5,800,000 0 55,148,287 N/A 0
Horizon Asset Huixin
No. 43 Single Asset
131 / 269
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Management Plan
Huaneng Guicheng Trust
Corporation Limited -
Huaneng Trust Rongyue Others 0.49% 50,078,500 28,470,000 0 50,078,500 N/A 0
Weicheng Pooled Fund
Trust Plan
Domestic natural
Ni Xincai 0.47% 47,925,000 0 0 47,925,000 N/A 0
person
The situation (if any) that strategic investors or Rongsheng Holdings, the controlling shareholder of the Company, signed the Share Purchase and Sale Agreement with Aramco Overseas
general legal persons become the top 10 Company B.V. (“AOC”), a wholly-owned subsidiary of Saudi Aramco, a strategic partner on March 27, 2023, and planned to transfer
shareholders due to the placement of new 1,012,552,501 shares of the Company it held to AOC through agreed transfer. On July 20, 2023, both parties obtained the Securities Transfer
shares (if any) Registration Confirmation issued by China Securities Depository and Clearing Corporation Limited and completed the transfer.
Among the top 10 shareholders, Zhejiang Rongsheng Holding Group Co., Ltd. is the controlling shareholder of the Company, Li Yongqing and
Explanation of the relationship or concerted Li Guoqing are nephews of Li Shuirong, Chairman of the Board of Directors of Zhejiang Rongsheng Holding Group Co., Ltd., Xu Yuejuan is
action among the above shareholders sister-in-law of Li Shuirong, and Ni Xincai is the brother-in-law of Li Shuirong, forming associated relationships. 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
N/A
delegating/receiving/waiving voting rights
Special explanation of the existence of a
Among the top 10 shareholders, Rongsheng Petrochemical Co., Ltd. repurchased 516,433,122 shares in the special securities account,
special repurchase account among the top 10
accounting for 5.10% of the Company’s total share capital.
shareholders (if any)
Shareholdings of the top 10 shareholders not subject to sales restrictions
Number of shares without sales Class of shares
Name of shareholders restrictions held at the end of the reporting
period Class of shares Number
Zhejiang Rongsheng Holding Group Co., Ltd. 5,210,237,480 RMB ordinary shares 5,210,237,480
Aramco Overseas Company B.V. 1,012,552,501 RMB ordinary shares 1,012,552,501
Li Shuirong 160,818,750 RMB ordinary shares 160,818,750
Hong Kong Securities Clearing Company Limited 146,790,511 RMB ordinary shares 146,790,511
Xu Yuejuan 96,525,000 RMB ordinary shares 96,525,000
Horizon Asset - Huaneng Trust Jiayue No. 7 Single Fund Trust -
55,148,287 RMB ordinary shares 55,148,287
Horizon Asset Huixin No. 43 Single Asset Management Plan
Huaneng Guicheng Trust Corporation Limited - Huaneng
50,078,500 RMB ordinary shares 50,078,500
Trust Rongyue Weicheng Pooled Fund Trust Plan
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Full Text of 2023 Annual Report
Ni Xincai 47,925,000 RMB ordinary shares 47,925,000
Hangzhou Mingzhu Enterprise Management Partnership (Limited
39,838,466 RMB ordinary shares 39,838,466
Partnership)
Penghua Fund - China Life Insurance Co., Ltd. - Participating
Insurance - Penghua Fund State Life Stock Growth Equity Portfolio 36,595,081 RMB ordinary shares 36,595,081
Single Asset Management Plan (Available for Sale)
Among the top 10 shareholders, Zhejiang Rongsheng Holding Group Co., Ltd. is the controlling shareholder of the
Explanation of the relationship or concerted action among the top 10
Company, Xu Yuejuan is sister-in-law of Li Shuirong, Chairman of the Board of Directors of Zhejiang Rongsheng
shareholders of outstanding shares without sales restrictions and
Holding Group Co., Ltd., and Ni Xincai is the brother-in-law of Li Shuirong, forming associated relationships. In
among the top 10 shareholders of outstanding shares without sales
addition to the above associated relationships, the Company has no knowledge of whether other shareholders are
restrictions and the top 10 shareholders
related to each other or act in concert.
Explanation of the top 10 ordinary shareholders’ participation in Zhejiang Rongsheng Holding Group Co., Ltd. holds 5,180,237,480 shares through an ordinary account and 30,000,000
securities margin trading (if any) shares through a credit account.
Participation of the top ten shareholders in lending shares by refinancing business
□Applicable Not applicable
The top ten shareholders have changed from the previous period
Applicable □Not applicable
Unit: share
Changes in the top ten shareholders compared with the end of the previous period
Number of shares held by shareholders in general
Number of shares lent by refinancing at the
Add/Exit in account and credit account and lent by refinancing at
end of the period and not yet returned
this the end of the period and not returned
Name of shareholder (full name)
reporting Proportion to
period Proportion to total
Total Total total share
share capital
capital
Aramco Overseas Company B.V. Add 0 0.00% 1,012,552,501 10.00%
Huaneng Guicheng Trust Corporation Limited - Huaneng
Add 0 0.00% 50,078,500 0.49%
Trust Rongyue Weicheng Pooled Fund Trust Plan
China Construction Bank Co., Ltd. - GF Technology Pioneer
Exit 0 0.00% 0 0.00%
Hybrid Securities Investment Fund
Shanghai Pudong Development Bank Co., Ltd - Guangfa High-
Exit 0 0.00% 0 0.00%
end Manufacturing Equity Initiating Securities Investment Fund
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Whether any of the top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares not
subject to sales restrictions of the Company have any agreed repurchase trading during the reporting period
□Yes No
The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares 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
Legal
Date of Organiz
Name of controlling representativ
establishme ation Main business
shareholder e/person-in-
nt code
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 textile raw
9133000
Zhejiang Rongsheng September materials and products, fuel oil (excluding finished oil),
Li Shuirong 0793386
Holding Group Co., Ltd. 13, 2006 photovoltaic products, cement and products, wood and
31XM
products, hardware and electrical 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). (Any project that needs
to be approved by law can only be carried out after
getting approval by relevant authorities.)
Equity of other domestic
and overseas listed
companies in which
Zhejiang Rongsheng Holding Group Co., Ltd. has held 51.46% of shares of the Company and
controlling shareholders
29.08% of shares of Ningbo United Group Co., Ltd., respectively as their de facto controller.
have controlled and held
shares during the
reporting period
Changes in controlling shareholders during the reporting period
□Applicable Not applicable
There were no changes in controlling shareholders during the reporting period.
3. Actual controllers and persons acting in concert with the Company
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Name of the actual Relationship with Obtaining the right of residence in
Nationality
controller actual controller other countries or regions or not
Li Shuirong Same person China No
Main occupation and Chairman of the Board of Directors of Zhejiang Rongsheng Holding Group Co., Ltd., Chairman of
position Ningbo United Group Co., Ltd., and Chairman of the 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 actual controller. Zhejiang Rongsheng Holding Group Co., Ltd. has
his control in the past 10 held 51.46% of shares of the Company and 29.08% of shares of Ningbo United Group Co., Ltd.,
134 / 269
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years respectively as their de facto controller. Zhejiang Rongsheng Holding Group Co., Ltd. has held
51.46% of shares of the Company and 29.08% of shares of Ningbo United Group Co., Ltd.,
respectively as their de facto controller.
Changes in actual controllers during the reporting period
□Applicable Not applicable
There were no changes in actual controllers 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.
51.46%
Rongsheng Petrochemical
Co., Ltd.
Block diagram for the property and control relations between the Company and its actual controller
□Applicable Not applicable
4. The cumulative number of shares pledged by the controlling shareholder or the first largest
shareholder of the Company and persons acting in concert with the Company reaches 80% of the
number of shares held.
□Applicable Not applicable
5. Other legal shareholders holding more than 10 % of the shares
Applicable □Not applicable
Legal
Name of corporate Date of Main business or
representative/person- Registered capital
shareholder establishment management activities
in-charge
Service providers, internal
banks and holding
Aramco Overseas Mazin Mohammed M companies are mainly
Date EUR 17,907,127,251
Company B.V. Dabbagh responsible for Saudi
Aramco's procurement and
other services.
6. Restricted reduction of shares by controlling shareholders, actual controllers, restructuring parties and
other committed subjects
Applicable □Not applicable
Rongsheng Holdings, the controlling shareholder of the Company, signed the Share Purchase and Sale
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Agreement with Aramco Overseas Company B.V, a wholly-owned subsidiary of Saudi Aramco, a strategic partner
on March 27, 2023, and planned to transfer 1,012,552,501 shares of the Company it held to AOC through agreed
transfer. On July 20, 2023, both parties obtained the Securities Transfer Registration Confirmation issued by
China Securities Depository and Clearing Corporation Limited and completed the transfer.
IV. Specific implementation of share repurchase during the reporting period
Progress of implementation of share buybacks
Applicable □Not applicable
Proportion of
the number of
Proporti shares
Disclosur Number of Proposed Number of
on to Proposed repurchased to
e time of shares to be repurchase Repurchase shares
total repurchase the underlying
the repurchased amount purpose repurchased
share period shares involved
scheme (shares) (RMB 10,000) (shares)
capital in the equity
incentive plan
(if any)
Within 12
Convertible
months from
45,454,500 RMB 1 billion corporate
the date of
shares - (inclusive) and bonds issued
March 16, 0.45%- approval of
90,909,100 not more than by listed 136,082,746 0.00%
2022 0.90% this repurchase
shares (all RMB 2 billion companies for
plan by the
inclusive) (inclusive) conversion
board of
into stocks
directors
Convertible
corporate
Within 12
bonds or
months from
50 million RMB 1 billion employee
the date of
shares-100 0.4938% (inclusive) and stock
August approval of
million shares — not more than ownership 147,862,706 0.00%
05, 2022 this repurchase
(both 0.9876% RMB 2 billion plans issued
plan by the
inclusive) (inclusive) by listed
board of
companies for
directors
conversion
into stocks
Convertible
corporate
Within 12
bonds or
months from
83,333,333 RMB 1.5 employee
the date of
shares- 0.8230% billion stock
August approval of
166,666,667 — (inclusive) - ownership 232,487,670 0.00%
22, 2023 this repurchase
shares (both 1.6460% RMB 3 billion plans issued
plan by the
inclusive) (inclusive) by listed
board of
companies for
directors
conversion
into stocks
Implementation progress of reducing repurchased shares by centralized competitive bidding
□Applicable Not applicable
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Section VIII Preferred Shares
□Applicable Not applicable
The Company had no preferred shares during the reporting period.
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Section IX Bonds
Applicable □Not applicable
I. Enterprise Bonds
□Applicable Not applicable
The Company had no corporate bonds during the reporting period.
II. Corporate Bonds
Applicable □Not applicable
1. Basic information of corporate bonds
Unit：RMB 10,000
Bond Mode of
Intere Tradi
abbre Bond Issue Value Maturit Bond repayment of
Name of bond st ng
viatio code date date y date balance principal and
rate venue
n interest
The interest shall be
accrued per year on
2020 Public a simple interest
Offering of Green basis, instead of Shenz
20
Corporate Bonds to April April April compound interest. hen
Rongs 14908
Eligible Investors 20, 22, 22, 100,000 3.86% The interest shall be Stock
heng 7.SZ
by Rongsheng 2020 2020 2024 paid once a year, Excha
G1
Petrochemical Co., and the last interest nge
Ltd. (Grade 1) shall be paid
together with the
principal.
The interest shall be
accrued per year on
2020 Public a simple interest
Offering of Green basis, instead of Shenz
20
Corporate Bonds to August Septem Septem compound interest. hen
Rongs 14922
Eligible Investors 28, ber 02, ber 02, 100,000 3.45% The interest shall be Stock
heng 0.SZ
by Rongsheng 2020 2020 2024 paid once a year, Excha
G2
Petrochemical Co., and the last interest nge
Ltd. (Grade 2) shall be paid
together with the
principal.
Investor suitability arrangements (if
Qualified institutional investor
any)
Applicable transaction mechanism Competitive price transaction
Any risk of termination of listing and
trading (if any) or not and None
countermeasures
Overdue bonds
□Applicable Not applicable
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2. Trigger and implementation of issuer or investor option clauses and investor protection clauses
Applicable □Not applicable
Implementation of
Bond Type of clause covered
Name of bond Option clause investor protection
abbreviation under the bond
clause
The implementation
2020 Public Offering of
Option to adjust coupon During the reporting conditions for the above
Green Corporate Bonds to 20
rate, put-back option and period, there was no clause of investor
Eligible Investors by Rongsheng
accelerated settlement need to implement protection have not been
Rongsheng Petrochemical G1
clause the option clause. triggered during the
Co., Ltd. (Grade 1)
reporting period
The implementation
2020 Public Offering of
Option to adjust coupon During the reporting conditions for the above
Green Corporate Bonds to 20
rate, put-back option and period, there was no clause of investor
Eligible Investors by Rongsheng
accelerated settlement need to implement protection have not been
Rongsheng Petrochemical G2
clause the option clause. triggered during the
Co., Ltd. (Grade 2)
reporting period
3. Intermediaries
Name of bond Name of Name of signing Contacts of Contact
Office address
projects intermediaries accountants intermediaries number
Tower B, China
Resources
Pan-China Certified
20 Rongsheng Building, Yu Jianan, Xu
Public Accountants
G1 and 20 No.1366, Xiaofeng, Xu Zheng Qihua 0571-88216888
(Special General
Rongsheng G2 Qianjiang Road, Haihong, Xu Cheng
Partnership)
Shengcheng
District, Hangzhou
Whether the institutions above change during the reporting period
□Yes No
4. Use of the raised funds
Unit：RMB 10,000
Consistent with the
Total Operation of a Rectification of
purpose, use plan and
Name of bond amount Used Unused special account illegal use of
other agreements
projects of raised amount amount for raised raised funds (if
promised in the
funds funds (if any) any)
prospectus or not
20 Rongsheng
100,000 100,000 0 Normal None Yes
G1
20 Rongsheng
100,000 100,000 0 Normal None Yes
G2
Raise funds for construction projects
Applicable □Not applicable
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.
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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.
Changes in the use of funds raised from the above bonds of the Company during the reporting period
□Applicable Not applicable
5. Adjustment of credit rating results during the reporting period
□Applicable Not applicable
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
□Applicable Not applicable
III. Debt financing instruments of non-financial enterprises
□Applicable Not applicable
During the reporting period, the Company did not have any debt financing instruments of non-financial
enterprises.
IV. Convertible corporate bonds
□Applicable Not applicable
The Company had no convertible bonds 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
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
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Increase or decrease at the
end of the reporting period
Item End of the reporting period End of last year
over the end of the previous
year
Current ratio 59.67% 73.60% -18.93%
Liability-asset ratio 74.75% 73.20% 1.55%
Quick ratio 14.90% 23.07% -35.41%
Increase/decrease in the
current reporting period
Current reporting period Same period last year
over the same period last
year
Net profit net of non-
82,009.29 201,216.42 -59.24%
recurring gain and loss
EBITDA total debt ratio 11.52% 11.69% -0.17%
Interest coverage ratio 1.06 1.35 -21.48%
Cash interest coverage ratio 4.51 4.18 7.89%
EBITDA interest coverage
2.81 2.85 1.40%
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 opinion Standard unqualified opinion
Audit Report Signing Date April 24, 2024
Pan-China Certified Public Accountants (Special General
Name of auditor
Partnership)
Audit Report No. 2024 (4366)
Name of certified public accountants Jia Chuan, Xu Haihong
Text of Audit Report
I. Audit Opinion
We have audited the financial statements of Rongsheng Petrochemical Co., Ltd. (the “Company”), which
comprise the consolidated and parent company balance sheets as at December 31, 2023, the consolidated and
parent company income statements, consolidated and parent company cash flow statements, and consolidated and
parent company statements of changes in equity for the year then ended, as well as notes to financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company as at December 31, 2023, and its financial performance and its cash flows for the year
then ended in accordance with China Accounting Standards for Business Enterprises.
II. Basis for Audit Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those
standards are further described in the Certified Public Accountant’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the China Code of
Ethics for Certified Public Accountants, and we have fulfilled other ethical responsibilities. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not express a separate opinion on
these matters.
(I) Revenue recognition
1. Description of matters
Please refer to section III (XXIV) and V (II) 1 of notes to the financial statements for details.
The operating income of Rongsheng Petrochemical Company mainly comes from the sales of refinery
products, chemical products, PTA, polyester chips, polyester yarns, polyester films, etc. In 2023, the operating
revenue amounted to 325,111.61 million yuan. According to the sales contract entered into between the Company
and its customers, revenue from sales of goods is recognized when the customer has obtained the control over
related goods.
As operating revenue is one of the key performance indicators of the Company, there might be inherent risks
that the Company’s management (the “Management”) adopts inappropriate revenue recognition to achieve
specific goals or expectations, we have identified revenue recognition as a key audit matter.
2. Responsive audit procedures
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Our main audit procedures for revenue recognition are as follows:
(1) We obtained understandings of key internal controls related to revenue recognition, assessed the design of
these controls, determined whether they had been executed, and tested the effectiveness of the operation;
(2) We checked sales contracts, obtained understandings of main contractual terms or conditions, confirmed
the transaction essence of the related businesses in combination with their background, and assessed whether the
revenue recognition method was appropriate;
(3) We performed analysis procedure on operating revenue and gross margin by month, product, customer,
etc., so as to identify whether there are significant or abnormal fluctuations and find out the reason;
(4) For revenue from domestic sales, we checked supporting documents related to revenue recognition by
sampling method, including sales contracts, orders, sales invoices, outbound delivery orders, logistics records,
delivery receipts, etc.; for revenue from overseas sales, we obtained information from Electron Port and checked it
with accounting records, and checked supporting documents including sales contracts, bills of clearance, waybills,
sales invoices, delivery and shipping records, etc. by sampling method;
(5) We performed confirmation procedures on sales amount of major customers by sampling method in
combination with confirmation procedure of accounts receivable;
(6) We performed cut-off tests to check whether the revenue was recognized in the appropriate period;
(7) We obtained sales return records subsequent to the balance sheet date and checked whether there was
revenue not eligible for recognition at the balance sheet date; and
(8) We checked whether information related to operating revenue had been presented appropriately in the
financial statements.
(II) Measurement of fixed assets and construction in progress
1. Description of matters
Please refer to section III (XVI), III (XVII), III (XVIIII) and V (I) 11 and 12 of notes to the financial
statements for details.
As of December 31, 2023, the book balance of fixed assets presented in the financial statements of the
Company amounted to 219,699.68 million yuan, which mainly refer to machinery used for production of refining-
chemical products, etc. and corresponding plants. Such assets are accounted for as fixed assets when they reach
the designed usable conditions, with depreciation made using the straight-line method over their estimated useful
lives.
As of December 31, 2023, the book balance of construction in progress presented in the financial statements
of the Company amounted to 41,820.67 million yuan, which mainly refers to 1.40 million tons of ethylene, as well
as downstream chemical plant installations, public works and supporting facilities, etc. Such construction in
progress is measured at actual cost, which include construction costs, installation costs, borrowing costs eligible
for capitalization and other necessary expenditures incurred to bring the construction in progress to its designed
usable conditions, including expenditures on engineering design, supervision, cost consultancy, etc.
The judgments made by the Management would have an impact on the carrying amount of fixed assets and
construction in progress, as well as deprecation policy for fixed assets, which includes: determination of
expenditures eligible for capitalization, time point of transferring the construction in progress into fixed assets and
starting deprecation, estimation of the economic useful life and the residual value of corresponding fixed assets.
As the assessment of carrying amount of fixed assets and construction in progress involves significant
judgment of the Management, and may have significant impact on the consolidated financial statements, we have
identified measurement and recognition of fixed assets and construction in progress as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for measurement of fixed assets and construction in progress are as follows:
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(1) We obtained understandings of key internal controls related to measurement of fixed assets and
construction in progress, assessed the design of these controls, determined whether they had been executed, and
tested the effectiveness of the operation;
(2) We checked newly increased construction in progress by sampling method, confirmed whether they were
eligible for capitalization, spot checked construction and installation costs with significant amount increased in the
current period, checked related construction contracts, and cross checked the actual amount paid with invoices and
payment vouchers;
(3) We obtained loan contracts and reviewed the accuracy and completeness of recognition of capitalized
interest in combination with the inputs into construction in progress;
(4) We conducted on-site observation on engineering construction to obtain an understanding of and assess
the progress of engineering, so as to confirm whether there are significant differences between the observation
results and the Company’s accounting records;
(5) We confirmed the time point of transferring construction in progress to fixed assets, checked the accuracy
of the time point in combination with on-site observation and fixed assets acceptance reports;
(6) We assessed the reasonableness of depreciation method of fixed assets to further review the
reasonableness of accrued depreciations; and
(7) We checked whether information related to fixed assets and construction in progress had been presented
appropriately in the financial statements.
IV. Other Information
Management is responsible for the other information. The other information comprises the information
included in the Company’s annual report, but does not include the financial statements and our auditor’s report
thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of the other
information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The Management is responsible for preparing and presenting fairly the financial statements in accordance
with China Accounting Standards for Business Enterprises, as well as designing, implementing and maintaining
internal control relevant to the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Management either intends to liquidate the Company or to cease operations,
or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
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accordance with China Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
We exercise professional judgment and maintain professional skepticism throughout the audit performed in
accordance with China Standards on Auditing. We also:
(I) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Management.
(IV) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Company to cease to continue as a going concern.
(V) Evaluate the overall presentation, structure and content of the financial statements, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are responsible for
the direction, supervision and performance of the group audit. We remain sole responsibility for our audit opinion.
We communicate with those charged with governance regarding the planned audit scope, time schedule and
significant audit findings, including any deficiencies in internal control of concern that we identify during our
audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
II. Financial Statements
The financial statement notes are represented in RMB.
1. Consolidated balance sheet
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Prepared by: Rongsheng Petrochemical Co., Ltd.
December 31, 2023
Unit: RMB
Item December 31, 2023 January 01, 2023
Current assets:
Cash and bank balances 13,070,255,466.02 18,238,774,380.21
Settlement funds
Loans to other banks
Held-for-trading financial assets 310,087,429.45 188,283,362.49
Derivative financial assets
Notes receivable
Accounts receivable 4,737,733,703.66 7,128,011,047.03
Receivables financing 175,036,242.93 187,298,909.35
Advances paid 1,493,312,465.86 2,558,120,124.99
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve
receivable
Other receivables 4,510,228,597.49 4,262,221,292.97
Including: Interest receivables
Dividends receivable
Redemptory monetary capital for sale
Inventories 61,733,657,342.07 60,689,909,793.94
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 5,297,128,974.31 2,467,681,369.50
Total current assets 91,327,440,221.79 95,720,300,280.48
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 9,183,711,444.96 8,733,329,806.35
Other equity instrument investments
Other non-current financial assets
Investment property 10,395,574.60 10,667,020.60
Fixed assets 219,699,679,397.52 222,161,110,736.65
Construction in progress 41,820,671,070.59 26,135,157,629.45
Productive biological assets
Oil & gas assets
Right-of-use assets 200,102,141.16 225,606,768.34
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Intangible assets 7,128,930,412.44 5,997,771,881.12
Development expenditures
Goodwill
Long-term deferred expense 45,701.13 117,159.13
Deferred tax assets 690,808,878.08 398,380,992.98
Other non-current assets 4,856,655,469.41 3,206,152,216.42
Total non-current assets 283,591,000,089.89 266,868,294,211.04
Total assets 374,918,440,311.68 362,588,594,491.52
Current liabilities:
Short term borrowings 44,810,936,767.94 26,369,552,400.50
Central bank loans
Loans from other banks
Held-for-trading financial liabilities 623,298,741.33 588,769,711.55
Derivative financial liabilities
Notes payable 4,195,471,402.63 3,408,800,462.03
Accounts payable 49,744,126,901.38 69,079,366,976.43
Advances received
Contract liabilities 4,421,732,432.83 3,734,262,391.81
Financial liabilities under repo
Absorbing deposit and interbank
deposit
Deposits for agency security
transaction
Deposits for agency security
underwriting
Employee benefits payable 1,032,220,776.56 1,022,711,102.12
Taxes and rates payable 476,781,167.70 1,463,341,122.44
Other payables 16,919,133,504.47 3,472,604,671.47
Including: Interests payable
Dividends payable 228,000,000.00 108,000,000.00
Handling fees and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
30,286,684,174.81 20,461,387,778.93
year
Other current liabilities 551,990,844.96 458,588,848.28
Total current liabilities 153,062,376,714.61 130,059,385,465.56
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 125,179,583,821.18 130,962,386,969.29
Bonds payable 2,034,827,122.23
Including: Preferred shares
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Perpetual bonds
Lease liabilities 193,002,312.38 213,400,396.45
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 195,581,593.25 195,662,553.73
Deferred tax liabilities 1,619,074,228.97 1,955,971,401.12
Other non-current liabilities
Total non-current liabilities 127,187,241,955.78 135,362,248,442.82
Total liabilities 280,249,618,670.39 265,421,633,908.38
Owner’s equity:
Share capital 10,125,525,000.00 10,125,525,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 10,825,322,259.36 10,822,594,513.39
Less: Treasury shares 6,619,807,176.02 3,978,202,364.65
Other comprehensive income 110,203,866.35 139,462,613.71
Special reserve 60,677,296.91
Surplus reserve 974,151,644.68 886,470,394.72
General risk reserve
Undistributed profit 28,859,818,194.51 29,265,710,547.78
Total equity attributable to the parent
44,335,891,085.79 47,261,560,704.95
company
Minority equity 50,332,930,555.50 49,905,399,878.19
Total equity 94,668,821,641.29 97,166,960,583.14
Total liabilities & equity 374,918,440,311.68 362,588,594,491.52
Legal representative: Li Shuirong Officer in charge of accounting: Wang Yafang Head of accounting firm: Zhang Shaoying
2. Balance sheet of the parent company
Unit: RMB
Item December 31, 2023 January 01, 2023
Current assets:
Monetary fund 3,178,729,609.27 710,893,292.35
Held-for-trading financial assets 590,642.24
Derivative financial assets
Notes receivable
Accounts receivable 20,051,350.25 70,794,193.95
Receivables financing 48,866,718.09 49,291,497.90
Advances paid 86,770,376.46 59,646,623.00
Other receivables 3,279,228,160.71 674,169,712.95
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Including: Interest receivables
Dividends receivable 1,230,000,000.00 300,000,000.00
Inventories 373,819,275.01 458,506,509.44
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 80,073,156.09
Total current assets 6,988,056,132.03 2,103,374,985.68
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 44,868,063,401.17 43,204,610,202.35
Other equity instrument investments
Other non-current financial assets
Investment property 10,395,574.60 10,667,020.60
Fixed assets 278,851,669.68 292,134,252.67
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets 362,662.83 1,813,314.23
Intangible assets 15,926,750.02 18,392,144.26
Development expenditures
Goodwill
Long-term deferred expense
Deferred tax assets
Other non-current assets
Total non-current assets 45,173,600,058.30 43,527,616,934.11
Total assets 52,161,656,190.33 45,630,991,919.79
Current liabilities:
Short-term borrowings 5,205,927,913.36 7,450,753,608.62
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 877,250,766.14 700,000,000.00
Accounts payable 2,236,363,176.15 5,285,277,965.83
Advances received
Contract liabilities 132,034,985.73 149,074,706.33
Employee benefits payable 62,259,994.55 46,566,384.61
Taxes and rates payable 9,502,189.46 3,732,804.55
Other payables 17,362,996,403.59 5,268,355,508.97
Including: Interests payable
149 / 269
Full Text of 2023 Annual Report
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
5,306,548,588.47 885,163,049.92
year
Other current liabilities 17,164,548.14 19,379,711.82
Total current liabilities 31,210,048,565.59 19,808,303,740.65
Non-current liabilities:
Long-term borrowings 4,066,370,787.22 3,695,453,801.14
Bonds payable 2,034,827,122.23
Including: Preferred shares
Perpetual bonds
Lease liabilities 24,474.11
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 8,319,120.04 9,434,323.24
Deferred income liabilities
Other non-current liabilities
Total non-current liabilities 4,074,689,907.26 5,739,739,720.72
Total liabilities 35,284,738,472.85 25,548,043,461.37
Owner’s equity:
Share capital 10,125,525,000.00 10,125,525,000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 11,243,374,721.45 11,243,393,393.54
Less: Treasury shares 6,619,807,176.02 3,978,202,364.65
Other comprehensive income 80,110,211.22 44,972,616.09
Special reserve
Surplus reserve 974,151,644.68 886,470,394.72
Undistributed profit 1,073,563,316.15 1,760,789,418.72
Total equity 16,876,917,717.48 20,082,948,458.42
Total liabilities & equity 52,161,656,190.33 45,630,991,919.79
3. Consolidated income statement
Unit: RMB
Item 2023 2022
I. Total operating revenue 325,111,614,268.09 289,094,841,612.76
Including: operating revenue 325,111,614,268.09 289,094,841,612.76
Interest income
Premiums earned
150 / 269
Full Text of 2023 Annual Report
Handling fees and commissions
II. Total operating cost 326,533,413,625.57 286,240,299,834.63
Including: Operating cost 287,758,885,697.30 257,841,154,581.27
Interest expenses
Handling fees and commissions
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 22,947,657,583.48 17,010,838,980.38
Selling expenses 160,462,247.93 175,450,628.16
Administrative expenses 908,998,018.22 815,233,609.10
R&D expenses 6,555,282,352.50 4,367,112,486.97
Financial expenses 8,202,127,726.14 6,030,509,548.75
Including: Interest expenses 7,352,267,160.76 4,577,830,003.95
Interest income 462,192,239.25 351,751,026.01
Add: Other income 2,589,241,344.18 2,363,252,918.77
Investment income (losses expressed with “-”) 460,034,533.27 693,478,145.84
Including: Investment income from associates and
275,964,998.21 644,363,579.51
joint ventures
Gains from derecognition of financial assets
at amortized cost
Exchange gains (losses expressed with “-”)
Net exposure hedging gains (losses expressed with “-”)
Gains on changes in fair value (losses expressed with “-”) 155,886,267.94 10,728,066.90
Credit impairment loss (losses expressed with “-”) -105,271,556.51 -15,203,657.84
Loss on assets impairment (losses marked with “-”) -121,513,148.98 -282,256,547.80
Gains on disposal of assets (losses expressed with “-”) 3,706,231.92 3,885,078.23
III. Operating profit (losses expressed with “-”) 1,560,284,314.34 5,628,425,782.23
Add: non-operating income 2,956,271.70 4,744,570.37
Less: non-operating expenses 10,662,129.76 14,101,126.33
IV. Total profits (total losses expressed with “-”) 1,552,578,456.28 5,619,069,226.27
Less: income tax expenses -50,584,009.36 -751,253,791.74
V. Net profit (net losses expressed with “-”) 1,603,162,465.64 6,370,323,018.01
(I) By business continuity
1. Net profit from going concern (net losses expressed with
1,603,162,465.64 6,370,323,018.01
“-”)
2. Net profit from discontinued operations (net losses
expressed with “-”)
(II) By ownership
1. Net profit attributable to shareholders of the parent
1,158,146,248.89 3,340,713,394.56
company
151 / 269
Full Text of 2023 Annual Report
2. Minority equity income 445,016,216.75 3,029,609,623.45
VI. Other comprehensive income, net of tax -15,189,892.14 181,210,268.64
After-tax net of other comprehensive income attributable to
-29,258,747.36 151,931,680.55
the owners of parent company
(I) Other comprehensive income which may not be
590,642.24
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 590,642.24
(II) Other comprehensive income which may be reclassified
-29,849,389.60 151,931,680.55
to gain and loss
1. Other comprehensive income which may be
34,005,723.54 -21,083,875.34
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 financial
-63,855,113.14 173,015,555.89
statements
7. Others
Other comprehensive income attributable to minority
14,068,855.22 29,278,588.09
shareholders, net of tax
VII. Total comprehensive income 1,587,972,573.50 6,551,533,286.65
Total comprehensive income attributable to owners of the
1,128,887,501.53 3,492,645,075.11
parent company
Total comprehensive income attributable to minority
459,085,071.97 3,058,888,211.54
shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.12 0.33
(II) Diluted earnings per share 0.12 0.33
Legal representative: Li Shuirong Officer in charge of accounting: Wang Yafang Head of accounting firm: Zhang Shaoying
4. Income statement of the parent Company
Unit: RMB
Item 2023 2022
I. Operating income 3,801,464,198.72 3,906,667,116.58
Less: operating costs 3,722,981,661.13 4,022,505,958.26
Taxes and surcharges 6,655,211.53 12,952,366.03
Selling expenses 57,902,895.45 33,791,804.36
152 / 269
Full Text of 2023 Annual Report
Administrative expenses 50,209,045.98 50,127,420.98
R&D expenses 96,402,110.80 81,025,592.00
Financial expenses 830,017,775.12 706,400,629.87
Including: Interest expenses 889,784,232.11 730,301,227.51
Interest income 62,283,984.35 36,626,532.50
Add: Other income 751,632,963.95 7,346,841.85
Investment income (losses expressed with “-”) 1,089,479,531.08 2,736,300,881.32
Including: return on investment in associated
213,559,806.48 268,195,976.97
enterprises and joint 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 “-”) 1,510,901.98 6,828,715.54
Loss on assets impairment (losses marked with “-”) -2,961,557.87 -12,601,352.12
Gains on disposal of assets (losses expressed with “-”) -14,028.90
II. Operating profits (losses expressed with “-”) 876,943,308.95 1,737,738,431.67
Add: non-operating income 21,209.63 12,190.56
Less: non-operating expenses 152,018.99 3,336.13
III. Total profits (total losses expressed with “-”) 876,812,499.59 1,737,747,286.10
Less: income tax expenses
IV. Net profits (net losses expressed with “-”) 876,812,499.59 1,737,747,286.10
(I) Net profits from going concern (net losses expressed with
876,812,499.59 1,737,747,286.10
“-”)
(II) Net profits from discontinued operations (net losses
expressed with “-”)
V. Other comprehensive incomes, net of tax 35,137,595.13 -41,608,615.77
(I) Other comprehensive income which may not be
590,642.24
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 590,642.24
(II) Other comprehensive income which may be reclassified
34,546,952.89 -41,608,615.77
to gain and loss
1. Other comprehensive income which may be
34,546,952.89 -41,608,615.77
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
153 / 269
Full Text of 2023 Annual Report
5. Cash flow hedging reserves
6. Difference in translation of foreign currency financial
statements
7. Others
VI. Total comprehensive incomes 911,950,094.72 1,696,138,670.33
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Item 2023 2022
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 427,728,683,875.50 338,522,230,751.87
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 9,958,573,336.65 23,966,619,179.64
Cash received relating to other operating activities 5,651,780,404.79 4,013,759,568.90
Subtotal of cash inflows for operating activities 443,339,037,616.94 366,502,609,500.41
Cash paid for goods purchased and services received 382,643,654,728.90 313,742,412,549.33
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 3,522,432,198.53 3,796,045,980.29
Payments of all types of taxes 25,072,810,953.81 26,372,263,702.45
Cash paid relating to other operating activities 4,020,918,226.97 3,533,750,382.98
Subtotal of cash outflows from operating activities 415,259,816,108.21 347,444,472,615.05
Net cash flow from operating activities 28,079,221,508.73 19,058,136,885.36
II. Cash flows from investing activities:
154 / 269
Full Text of 2023 Annual Report
Cash received from investment recovery 3,180,301,658.70 3,729,684,617.90
Cash received from the return on investment 46,185,918.80 480,185,918.81
Net cash received from the disposal of fixed assets, intangible
33,821,614.72 128,655,426.42
assets and other long-term assets
Net cash received from the disposal of subsidiaries and other
18,698,663.16
business units
Cash received relating to other investing activities 471,846,135.19 413,191,478.93
Subtotal of cash inflows from investing activities 3,750,853,990.57 4,751,717,442.06
Cash paid for purchase and construction of fixed assets,
32,643,267,964.49 29,457,883,096.55
intangible assets and other long-term assets
Cash paid for investments 3,178,359,828.41 3,773,365,703.69
Net increase in pledge loans
Net cash paid for acquisition of subsidiaries and other
business units
Cash paid relating to other investing activities 216,460,115.21 486,776,219.14
Subtotal of cash outflows from investing activities 36,038,087,908.11 33,718,025,019.38
Net cash flow from investment activities -32,287,233,917.54 -28,966,307,577.32
III. Cash flow from financing activities:
Cash received from absorption of investment 2,498,660,000.00
Including: cash received by subsidiaries from investments of
2,498,660,000.00
minority shareholders
Cash received from borrowings 138,409,693,130.84 93,103,414,620.97
Cash received relating to other financing activities 20,885,325,460.00 14,699,581,588.16
Subtotal of cash inflows from financing activities 159,295,018,590.84 110,301,656,209.13
Cash paid for repayment of debts 117,188,136,080.88 76,513,846,971.48
Cash paid for distribution of dividends and profits or payment
9,700,463,891.53 11,471,972,294.10
of interests
Including: dividends or profits paid by subsidiaries to minority
2,529,500,000.00
shareholders
Cash paid relating to other financing activities 31,203,648,155.85 10,759,163,614.10
Subtotal of cash outflows from financing activities 158,092,248,128.26 98,744,982,879.68
Net cash flow from financing activities 1,202,770,462.58 11,556,673,329.45
IV. Effect of change in exchange rate on cash and cash
-967,182,760.02 -528,060,478.39
equivalents
V. Net increase in cash and cash equivalents -3,972,424,706.25 1,120,442,159.10
Add: opening balance of cash and cash equivalents 15,459,279,803.77 14,338,837,644.67
VI. Closing balance of cash and cash equivalents 11,486,855,097.52 15,459,279,803.77
6. Cash flow statement of the parent Company
Unit: RMB
Item 2023 2022
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 9,684,499,404.78 9,019,533,970.04
Refunds of taxes and levies 90,299,027.73 3,706,999.49
155 / 269
Full Text of 2023 Annual Report
Cash received relating to other operating activities 1,009,384,263.80 3,335,504,075.51
Subtotal of cash inflows for operating activities 10,784,182,696.31 12,358,745,045.04
Cash paid for goods purchased and services received 10,826,529,124.42 8,155,206,221.15
Cash paid to and on behalf of employees 246,704,453.63 265,783,347.86
Payments of all types of taxes 13,470,165.07 84,164,591.71
Cash paid relating to other operating activities 799,794,540.43 3,416,128,004.85
Subtotal of cash outflows from operating activities 11,886,498,283.55 11,921,282,165.57
Net cash flow from operating activities -1,102,315,587.24 437,462,879.47
II. Cash flows from investing activities:
Cash received from investment recovery 62,012,313.32 4,234,526.03
Cash received from the return on investment 39,685,918.80 3,286,685,918.80
Net cash received from the disposal of fixed assets, intangible
376,446.55
assets and other long-term assets
Net cash received from the disposal of subsidiaries and other
1,061,902.58
business units
Cash received relating to other investing activities 2,003,000,000.00
Subtotal of cash inflows from investing activities 2,105,074,678.67 3,291,982,347.41
Cash paid for purchase and construction of fixed assets,
16,403,475.25 29,750,290.38
intangible assets and other long-term assets
Cash paid for investments 1,516,209,000.00 2,985,996,536.00
Net cash paid for acquisition of subsidiaries and other
business units
Cash paid relating to other investing activities 2,878,891,000.00
Subtotal of cash outflows from investing activities 4,411,503,475.25 3,015,746,826.38
Net cash flow from investment activities -2,306,428,796.58 276,235,521.03
III. Cash flow from financing activities:
Cash received from absorption of investment
Cash received from borrowings 11,935,860,000.00 13,937,740,982.91
Cash received relating to other financing activities 24,651,006,000.00 16,320,574,824.00
Subtotal of cash inflows from financing activities 36,586,866,000.00 30,258,315,806.91
Cash paid for repayment of debts 11,421,360,479.28 11,029,293,598.66
Cash paid for distribution of dividends and profits or payment
2,030,433,516.19 2,009,000,996.77
of interests
Cash paid relating to other financing activities 17,082,266,592.43 17,875,313,657.27
Subtotal of cash outflows from financing activities 30,534,060,587.90 30,913,608,252.70
Net cash flow from financing activities 6,052,805,412.10 -655,292,445.79
IV. Effect of change in exchange rate on cash and cash
288,239.11 -12,330,984.86
equivalents
V. Net increase in cash and cash equivalents 2,644,349,267.39 46,074,969.85
Add: opening balance of cash and cash equivalents 510,179,880.17 464,104,910.32
VI. Closing balance of cash and cash equivalents 3,154,529,147.56 510,179,880.17
156 / 269
Full Text of 2023 Annual Report
7. Consolidated statement of changes in owner’s equity
Closing balance
Unit: RMB
2023
Owner’s equity attributable to the parent company
Other equity Other
Item instruments Gene Minori Total
Less: comp Speci Surpl
ric Undistr ty owner’
Share Prefe Capital Treasu rehen al us Other Subtot
Perpe risk ibuted equity s equity
capital rred Other reserve ry sive reserv reserv s al
tual reser profits
share s stock incom es es
bond ves
s e
10,125, 10,822, 3,978,2 139,4 886,4 29,265, 47,261, 49,905, 97,166,
I. Closing balance of the previous
525,000 594,513 02,364. 62,61 70,39 710,547 560,704 399,878 960,583
year
.00 .39 65 3.71 4.72 .78 .95 .19 .14
Add: Changes in accounting
policies
Correction of errors in the
previous period
Others
10,125, 10,822, 3,978,2 139,4 886,4 29,265, 47,261, 49,905, 97,166,
II. Opening balance of the year 525,000 594,513 02,364. 62,61 70,39 710,547 560,704 399,878 960,583
.00 .39 65 3.71 4.72 .78 .95 .19 .14
- -
2,641,6 60,67 87,68 -
III. Increases/decreases in the current 2,727,7 29,25 427,530 2,498,1
04,811. 7,296. 1,249. 405,892
period (decrease expressed with “-”) 45.97 8,747. ,677.31 38,941.
37 91 96 ,353.27
36 85
-
1,158,1 1,587,9
29,25 459,085
(I) Total comprehensive income 46,248. 72,573.
8,747. ,071.97
89 50
36
-
2,641,6
(II) Capital contributed and reduced 2,641,6
04,811.
by owners 04,811.
37
37
157 / 269
Full Text of 2023 Annual Report
-
2,641,6
1. Ordinary shares invested by the 2,641,6
04,811.
owners 04,811.
37
37
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
recognized in owner’s equity
4. Others
- -
87,68 -
1,564,0 1,596,3
(III) Profit distribution 1,249. 120,000
38,602. 57,352.
96 ,000.00
16 20
87,68 -
1. Withdrawal of surplus reserve 1,249. 87,681,
96 249.96
2. Withdrawal of generic risk
reserves
- -
-
3. Distribution to owners (or 1,476,3 1,596,3
120,000
shareholders) 57,352. 57,352.
,000.00
20 20
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
158 / 269
Full Text of 2023 Annual Report
6. Others
60,67
58,876, 119,553
(V) Special reserve 7,296.
200.72 ,497.63
91
367,3
1. Amount appropriated in the current 289,192 656,515
22,63
period ,850.95 ,490.07
9.12
306,6
230,316 536,961
2. Use in the current period 45,34
,650.23 ,992.44
2.21
2,727,7 29,569, 32,297,
(VI) Others
45.97 404.62 150.59
10,125, 10,825, 6,619,8 110,20 60,67 974,1 28,859, 50,332, 94,668,
IV. Closing balance of the current
525,000 322,259 07,176. 3,866. 7,296. 51,64 818,194 930,555 821,641
period
.00 .36 02 35 91 4.68 .51 .50 .29
Opening balance
Unit: RMB
2022
Owner’s equity attributable to the parent company
Other equity Other
Item instruments Gene Minori Total
Less: comp Speci Surpl
ric Undistr ty owner’
Share Prefe Capital Treasu rehen al us Other Subtot
Perpe risk ibuted equity s equity
capital rred Other reserve ry sive reserv reserv s al
tual reser profits
share s stock incom es es
bond ves
s e
-
10,125, 10,820, 712,6 27,605, 49,251, 46,795, 96,047,
I. Closing balance of the previous 12,46
525,000 095,850 95,66 458,498 305,948 697,482 003,431
year 9,066.
.00 .58 6.11 .55 .40 .66 .06
84
Add: Changes in accounting 626,838 626,838 626,838
policies .23 .23 .23
Correction of errors in the
previous period
Others
159 / 269
Full Text of 2023 Annual Report
-
10,125, 10,820, 712,6 27,606, 49,251, 46,795, 96,047,
12,46
II. Opening balance of the year 525,000 095,850 95,66 085,336 932,786 697,482 630,269
9,066.
.00 .58 6.11 .78 .63 .66 .29
84
-
3,978,2 151,9 173,7 1,659,6 3,109,7 1,119,3
III. Increases/decreases in the current 2,498,6 1,990,3
02,364. 31,68 74,72 25,211. 02,395. 30,313.
period (decrease expressed with “-”) 62.81 72,081.
65 0.55 8.61 00 53 85
68
151,9 3,340,7 3,492,6 3,058,8 6,551,5
(I) Total comprehensive income 31,68 13,394. 45,075. 88,211. 33,286.
0.55 56 11 54 65
- -
3,978,2 2,498,6
(II) Capital contributed and reduced 3,978,2 1,479,5
02,364. 60,000.
by owners 02,364. 42,364.
65 00
65 65
- -
3,978,2 2,498,6
1. Ordinary shares invested by the 3,978,2 1,479,5
02,364. 60,000.
owners 02,364. 42,364.
65 00
65 65
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
recognized in owner’s equity
4. Others
- - - -
173,7
1,681,0 1,507,3 2,450,0 3,957,3
(III) Profit distribution 74,72
88,183. 13,454. 00,000. 13,454.
8.61
56 95 00 95
173,7 -
1. Withdrawal of surplus reserve 74,72 173,774
8.61 ,728.61
2. Withdrawal of generic risk
reserves
- - - -
3. Distribution to owners (or 1,507,3 1,507,3 2,450,0 3,957,3
shareholders) 13,454. 13,454. 00,000. 13,454.
95 95 00 95
160 / 269
Full Text of 2023 Annual Report
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
224,0
1. Amount appropriated in the current 224,052 165,574 389,626
52,37
period ,374.80 ,100.95 ,475.75
4.80
224,0
224,052 165,574 389,626
2. Use in the current period 52,37
,374.80 ,100.95 ,475.75
4.80
2,498,6 2,498,6 2,154,1 4,652,8
(VI) Others
62.81 62.81 83.99 46.80
10,125, 10,822, 3,978,2 139,4 886,4 29,265, 47,261, 49,905, 97,166,
IV. Closing balance of the current
525,000 594,513 02,364. 62,61 70,39 710,547 560,704 399,878 960,583
period
.00 .39 65 3.71 4.72 .78 .95 .19 .14
8. Statement of changes in owners’ equity of the parent company
Closing balance
Unit: RMB
161 / 269
Full Text of 2023 Annual Report
2023
Other equity instruments Other
Item Less: Undistri Total
Share Capital compreh Special Surplus
Preferre Perpetua Treasury buted Others owner’s
capital Others reserve ensive reserves reserves
d shares l bond stock profits equity
income
10,125,5
I. Closing balance of the previous 11,243,39 3,978,20 44,972,6 886,470, 1,760,78 20,082,94
25,000.0
year 3,393.54 2,364.65 16.09 394.72 9,418.72 8,458.42
0
Add: Changes in accounting
policies
Correction of errors in the
previous period
Others
10,125,5
11,243,39 3,978,20 44,972,6 886,470, 1,760,78 20,082,94
II. Opening balance of the year 25,000.0
3,393.54 2,364.65 16.09 394.72 9,418.72 8,458.42
0
- - -
III. Increases/decreases in the current 2,641,60 35,137,5 87,681,2
18,672.0 687,226, 3,206,030
period (decrease expressed with “-”) 4,811.37 95.13 49.96
9 102.57 ,740.94
35,137,5 876,812, 911,950,0
(I) Total comprehensive income
95.13 499.59 94.72
-
(II) Capital contributed and reduced 2,641,60
2,641,604
by owners 4,811.37
,811.37
-
1. Ordinary shares invested by the 2,641,60
2,641,604
owners 4,811.37
,811.37
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
recognized in owner’s equity
4. Others
- -
87,681,2
(III) Profit distribution 1,564,03 1,476,357
49.96
8,602.16 ,352.20
162 / 269
Full Text of 2023 Annual Report
-
87,681,2
1. Withdrawal of surplus reserve 87,681,2
49.96
49.96
- -
2. Distribution to owners (or
1,476,35 1,476,357
shareholders)
7,352.20 ,352.20
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
2. Use in the current period
-
-
(VI) Others 18,672.0
18,672.09
9
10,125,5
IV. Closing balance of the current 11,243,37 6,619,80 80,110,21 974,151, 1,073,56 16,876,91
25,000.0
period 4,721.45 7,176.02 1.22 644.68 3,316.15 7,717.48
0
Opening balance
Unit: RMB
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2022
Other equity instruments Other
Item Less: Undistri Total
Share Capital compreh Special Surplus
Preferre Perpetua Treasury buted Others owner’s
capital Others reserve ensive reserves reserves
d shares l bond stock profits equity
income
10,125,5
I. Closing balance of the previous 11,243,13 86,581,2 712,695, 1,704,13 23,872,06
25,000.0
year 6,840.58 31.86 666.11 0,316.18 9,054.73
0
Add: Changes in accounting
policies
Correction of errors in the
previous period
Others
10,125,5
11,243,13 86,581,2 712,695, 1,704,13 23,872,06
II. Opening balance of the year 25,000.0
6,840.58 31.86 666.11 0,316.18 9,054.73
0
- -
III. Increases/decreases in the current 256,552. 3,978,20 173,774, 56,659,1
41,608,6 3,789,120
period (decrease expressed with “-”) 96 2,364.65 728.61 02.54
15.77 ,596.31
-
1,737,74 1,696,138
(I) Total comprehensive income 41,608,6
7,286.10 ,670.33
15.77
-
(II) Capital contributed and reduced 3,978,20
3,978,202
by owners 2,364.65
,364.65
-
1. Ordinary shares invested by the 3,978,20
3,978,202
owners 2,364.65
,364.65
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
recognized in owner’s equity
4. Others
173,774, - -
(III) Profit distribution
728.61 1,681,08 1,507,313
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Full Text of 2023 Annual Report
8,183.56 ,454.95
-
173,774,
1. Withdrawal of surplus reserve 173,774,
728.61
728.61
- -
2. Distribution to owners (or
1,507,31 1,507,313
shareholders)
3,454.95 ,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
2. Use in the current period
256,552. 256,552.9
(VI) Others
96 6
10,125,5
IV. Closing balance of the current 11,243,39 3,978,20 44,972,6 886,470, 1,760,78 20,082,94
25,000.0
period 3,393.54 2,364.65 16.09 394.72 9,418.72 8,458.42
0
165 / 269
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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 Market Regulation Administration of Zhejiang Province, with a registered
capital of RMB 10,125,525,000.00 and a total of 10,125,525,000 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 disclosure at the 17th meeting of the 6th Board of Directors of
the Company on April 24, 2024.
IV. Preparation Basis of Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on a going concern basis.
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 Estimates
Important note: The Company has set up accounting policies and estimates on transactions or events such as
impairment of financial instruments, inventories, depreciation of fixed assets, construction in progress, intangible
assets, revenue recognition, etc., based on the Company’s actual production and operation features.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of China Accounting Standards
for Business Enterprises (CASBEs), and present truly and completely the financial position, financial performance
and cash flows of the Company.
2. Accounting period
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The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is classified as current if
it is expected to be realized or due within 12 months.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan, while the
functional currencies of subsidiaries engaged in overseas operations including Hong Kong Sheng Hui Limited,
Hong Kong Yi Sheng Da Hua Co., Limited, Yisheng New Materials Trading Co., Limited, Rongsheng
Petrochemical (Hong Kong) Limited, Rongsheng Petrochemical (Singapore) Pte. Ltd., Rongtong Logistics
(Singapore) Pte. Ltd., Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd., etc. are the currencies of the primary
economic environment in which they operate.
5. Determination method and basis for selection of materiality
Applicable □Not applicable
The Company prepares and discloses financial statements in compliance with the principle of materiality.
The items disclosed in notes to the financial statements involving materiality judgements, determination method
and basis for selection of materiality are as follows:
Item Disclosed items involving materiality judgements
Significant advances paid with age over Advances paid with single amount in excess of 0.5% of total assets are identified as
one year significant advances paid.
Construction in progress with single amount in excess of 0.5% of total assets are
Significant construction in progress
identified as significant construction in progress.
Significant advances paid with age over Advances paid with single amount in excess of 0.5% of total assets are identified as
one year significant advances paid.
Significant other payables with age over Other payables with single amount in excess of 0.5% of total assets are identified as
one year significant other payables
Significant contract liabilities with age Contract liabilities with single amount in excess of 0.5% of total assets are identified
over one year as significant contract liabilities.
Significant cash flows from investing Cash flows from investing activities with single amount in excess of 0.5% of total
activities assets are identified as significant cash flows from investing activities.
Significant not wholly-owned Subsidiaries with total assets in excess of 3% of the group’s total assets are identified
subsidiaries as significant not wholly-owned subsidiaries.
Associates with the carrying amount of single investment in excess of 0.5% of total
Significant associates
assets are identified as significant associates.
Commitments with single amount in excess of 3% of total assets or other events that
Significant commitments may be significantly influential for investors in decision-making are identified as
significant commitments.
Contingencies with single amount in excess of 3% of total assets or other events that
Significant contingencies may be significantly influential for investors in decision-making are identified as
significant contingencies.
Profit distribution and other events after the balance sheet date that may be
Significant events after the balance sheet
significantly influential for investors in decision-making are identified as significant
date
events after the balance sheet date.
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6. 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
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.
7. Judgement criteria for control and compilation method of consolidated financial statements
1. Judgement of control
An investor controls an investee if and only if the investor has all the following: (1) power over the investee;
(2) exposure, or rights, to variable returns from its involvement with the investee; and (3) the ability to use its
power over the investee to affect the amount of the investor’s returns.
2. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated
financial statements are compiled by the parent company according to “CASBE 33 – Consolidated Financial
Statements”, based on relevant information and the financial statements of the parent company and its subsidiaries.
8. Classification of joint arrangements and accounting treatment of joint operations
1. Joint arrangements include joint operations and joint ventures.
2. When the Company is a joint operator of a joint operation, it recognizes the following items in relation to
its interest in a joint operation:
(1) its assets, including its share of any assets held jointly;
(2) its liabilities, including its share of any liabilities incurred jointly;
(3) its revenue from the sale of its share of the output arising from the joint operation;
(4) its share of the revenue from the sale of the assets by the joint operation; and
(5) its expenses, including its share of any expenses incurred jointly.
9. 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.
10. Foreign currency business and conversion of foreign currency statements
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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
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.
11. 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
169 / 269
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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
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
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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.
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.;
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(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
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
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 leases receivable, and accounts receivable and contract assets resulting from transactions regulated in
“CASBE 14 – Revenues”, the Company chooses simplified approach to measure the loss allowance at an amount
equal to lifetime expected credit losses.
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 credible 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.
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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.
12. Contract assets
The Company presents contract assets or liabilities in the balance sheet based on the relation between
performance obligation and customer payment. Contract assets and contract liabilities under the same contract
shall offset each other and be presented on a net basis. The Company presents an unconditional right to
consideration (i.e., only the passage of time is required before the consideration is due) as a receivable, and
presents a right to consideration in exchange for goods that it has transferred to a customer (which is conditional
on something other than the passage of time) as a contract asset.
1. Receivables and contract assets subject to expected credit losses based on a combination of credit risk
characteristics
Basis for determining
Category of combination 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 future economic conditions, the
Type of notes
Commercial acceptance bill receivables expected credit loss is 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
Accounts receivable - aging portfolio Aging
comparison table between the aging of accounts
receivable and the expected credit loss rate is
compiled to calculate the expected credit loss
Accounts receivable - trade accounts With reference to historical credit loss experience
Nature of account
portfolio of overseas subsidiaries and in combination with the current situation and
the forecast of future economic conditions, the
Accounts receivable - Related party expected credit loss is calculated through default
Related parties within the
dealings portfolio within the scope of risk exposure and the expected credit loss rate in the
scope of consolidation [note]
consolidation whole duration
Other receivables - Related party dealings Related parties within the
portfolio within the scope of consolidation scope of consolidation [note]
Other receivables - Loan margin portfolio
Other receivables - government receivables
portfolio With reference to historical credit loss experience
and in combination with the current situation and
Other receivables - futures margin portfolio the forecast of future economic conditions, the
expected credit loss is calculated through default
Other receivables - paper goods transaction Nature of account risk exposure and the expected credit loss rate in the
settlement portfolio next 12 months or the whole duration.
Other receivables - deposit and margin
receivables portfolio
Other receivables - reserve fund
receivables portfolio
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Other receivables - current account
portfolio
[Note]: Related parties of the Company and within the scope of consolidated financial statements
2. Comparison table of ages and expected credit loss rate of portfolio grouped with ages
Ages Expected credit loss rate of accounts receivable (%)
Within 1 year (inclusive, the same hereinafter) 5
1— 2 years 10
2-3 years 30
Above 3 years 100
Ages of accounts receivable are calculated from the month when such receivables are accrued.
3. Recognition criteria for receivables and contract assets with expected credit losses measured on an
individual basis
For receivables and contract assets whose credit risk is significantly different from that of portfolios, the
Company accrues expected credit losses on an individual basis.
13. 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. Inventory system of inventories
The perpetual inventory system is adopted for inventories.
4. 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) Packages
Packages are amortized with one-off method.
5. Recognition criteria and accrual method of provision for inventory write-down
At the balance sheet date, inventories are measured at the lower of cost and net realizable value; provisions
for inventory write-down are made on the excess of its cost over 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.
14. Long-term equity investment
1. Judgment of joint control and significant influence
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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.
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.
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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) Judgment principle for whether a "package deal" or not
If the equity investment in the subsidiary is disposed of step by step through multiple transactions until it
loses control, the Company will judge whether the step-by-step transaction is a "package deal" by combining the
terms of the transaction agreement, the disposal consideration obtained separately, the object of equity sale, the
disposal method and the disposal time in each step of the step-by-step transactions. The terms, conditions and
economic impact of each transaction meet one or more of the following conditions, which usually indicates that
multiple transactions are "package deals":
1) These transactions were concluded at the same time or under the consideration of mutual impact;
2) These transactions as a whole can achieve a complete business result;
3) The occurrence of a transaction depends on the occurrence of at least one other transaction;
4) A transaction is uneconomical when viewed alone, but it is economical when considered together with
other transactions.
(2) Accounting treatment for non-"package deals"
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
Financial Instruments.
2) Consolidated financial statements
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.
(3) Accounting treatment for "package deals"
1) Individual financial statements
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 book value of
long-term equity investment corresponding to the disposal investment is recognized as other comprehensive
income in individual financial statements, and when the control is lost, transferred together into gain and loss for
the period during which the control is lost.
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2) Consolidated financial statements
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.
(2) Depreciation method
Depreciable life Annual depreciation
Category Depreciation method Residual value rate
(years) rate
Straight-line
Housing and buildings 5-30 5 or 10 19.00-3.00
depreciation method
Machinery and Straight-line
10-15 5 or 10 9.50-6.00
equipment depreciation method
Transportation Straight-line
4-5 5 or 10 23.75-18.00
facilities depreciation method
Straight-line
Other equipment 3-10 5 or 10 31.67-9.00
depreciation method
17. Construction in progress
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
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value. Upon the final accounts of completion, the previous tentatively estimated value other than accrued
depreciation shall be adjusted based on actual costs.
Categories Standards and time point of transferring construction in progress to fixed assets
When the main project and supporting projects have been substantially completed and reached the intended
Buildings and
design requirements, and acceptance has been completed by survey, design, construction, supervision and other
structures
units.
Machinery When the design requirements or standards specified in the contract are met after installation and commissioning
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
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) Service life and its determination basis, estimation, amortization method or review procedure
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:
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Items Useful life and determination basis Amortization method
Land-use right 15-50 years, useful life registered on the land use certificate Straight-line method
Proprietary technology 6-10 years, estimated economic useful life Straight-line method
Management software 5-10 years, estimated economic useful life Straight-line method
Pollution discharge
5-20 years, useful life registered on the certificate of titles Straight-line method
right
Sea area use right 1-50 years, useful life registered on the certificate of titles Straight-line method
(2) Collection scope of R&D expenditure and related accounting treatment methods
(1) Personnel costs
Personnel costs include wages and salaries, basic endowment insurance premiums, basic medical insurance
premiums, unemployment insurance premiums, occupational injuries premiums, maternity premiums and housing
provident funds for the Company’s R&D personnel, as well as labor costs for external R&D personnel.
If R&D personnel serve for multiple R&D projects at the same time, personnel costs are recognized based on
their working hour records provided by the Company’s administrative department, and proportionately allocated
among different R&D projects.
If personnel directly engaged in R&D activities and external R&D personnel are engaged in non-R&D
activities at the same time, the Company, based on their working hour records at different positions, allocates
personnel costs actually incurred between R&D expenses and production and operating expenses using reasonable
methods such as the ratio of actual working hours.
(2) Direct input costs
Direct input costs refer to relevant expenses actually incurred by the Company for R&D activities, which
include: 1) materials, fuel and power costs directly consumed by R&D activities; 2) development and
manufacturing costs of molds and craft equipment used for intermediate tests and trial production, acquisition
costs of samples, prototypes and general testing methods that do not constitute fixed assets, and inspection costs
of trial production; and 3) operation and maintenance, adjustment, inspection, testing and repairing costs of
instruments and equipment used for R&D activities.
(3) Depreciation costs
Depreciation costs refer to the depreciation of instruments, equipment and in-use buildings used for R&D
activities.
For instruments, equipment and in-use buildings both used for R&D activities and non-R&D activities,
necessary records shall be kept on their usage, and depreciation actually incurred is allocated between R&D
expenses and production and operating expenses in a reasonable manner based on the actual working hours, the
usable area, etc.
(4) Amortization costs of intangible assets
Amortization costs of intangible assets refer to the amortization of software, intellectual property, and non-
patented technology (proprietary technology, licenses, design and calculation methods, etc.) used for R&D
activities.
(5) Design expenses
Design expenses refer to expenses incurred for the conception, development and manufacturing of new
products and techniques, design of processes, technical specifications, process specification formulation,
operational characteristics, etc., including expenses incurred for creative design activities to obtain innovative,
creative and breakthrough products.
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(6) Equipment commissioning expenses
Equipment commissioning expenses refer to expenses incurred for R&D activities during tooling preparation,
including expenses incurred for activities such as development of special and specialized production machines,
changes in production and quality control procedures, development of new methods and standards, etc.
Expenses incurred for routine tooling preparation and industrial engineering for the purpose of large-
scale/mass and commercial production are not included in the permitted scope.
(7) R&D outsourcing expenses
R&D outsourcing expenses refer to expenses incurred for R&D activities outsourced to other domestic or
foreign organizations or individuals (outcomes of R&D activities are owned by the Company and closely related
to the Company’s main business operations).
(8) Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to R&D activities,
including technical books and materials fees, data translation fees, expert consultation fees, high-tech R&D
insurance premiums, R&D outcomes search, demonstration, evaluation, appraisal and acceptance fees, intellectual
property application, registration and agency fees, conference fees, business travelling fees, communication fees,
etc.
The expenditure in the research stage of internal R&D 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 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.
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.
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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
Employee remuneration includes short-term remuneration, post-employment benefits, dismissal benefits and
other long-term employee benefits.
(1) 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
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.
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(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. Provisions
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as
providing guarantee for other parties, litigation, products quality guarantee, onerous contract, etc., may cause the
outflow of the economic benefit and such obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling the
present obligations, and its carrying amount is reviewed at the balance sheet date.
25. Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement according to business types
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
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
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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.
(XXV) Costs of obtaining a contract and costs to fulfill a contract
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:
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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.
26. 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.
27. 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.
28. 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.
5. When both following conditions are met, the Company will list the deferred income tax assets and
deferred income tax liabilities as net amount after offset: (1) When the Company has the legal right to settle the
income tax assets and income tax liabilities of the Company in the current period with net amount; and (2) the
deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same tax
collection and management department from the same subject of tax payment or from different subjects of tax
payment but the subject of tax payment involved intends to settle the current income tax assets and current income
tax liabilities with the net amount or obtain the assets and liquidate the liabilities simultaneously in each future
important period when the deferred income tax assets and deferred income tax liabilities are written back.
29. Lease
(1) Accounting treatment method of lease as the lessee
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
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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
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) Accounting treatment method of lease as the lessor
1. 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.
2. After-sale leaseback
(1) The Company as lessee
According to the Accounting Standards for Business Enterprises No.14-Revenue, the Company evaluates and
determines whether the asset transfer in the after-sale leaseback transaction belongs to sales. If the asset transfer in
the after-sale leaseback transaction belongs to sales, the Company will measure the right-of-use assets formed by
after-sale leaseback according to the part of the book value of the original assets related to the right-of-use
obtained by leaseback, and only recognize the relevant gains or losses for the right transferred to the lessor. If the
asset transfer in the after-sale leaseback transaction does not belong to sales, the Company will continue to
recognize the transferred assets, and at the same time recognize a financial liability equal to the transferred income,
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and conduct accounting treatment for the financial liability according to the Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments.
(2) According to the Accounting Standards for Business Enterprises No.14-Revenue, the Company, as the
lessor, evaluates and determines whether the asset transfer in the after-sale leaseback transaction belongs to sales.
If the asset transfer in the after-sale leaseback transaction belongs to sales, the Company will carry out accounting
treatment on the asset purchase according to other applicable accounting standards for business enterprises, and
carry out accounting treatment on the asset lease according to the Accounting Standards for Business Enterprises
No.21-Lease. If the asset transfer in the after-sale leaseback transaction does not belong to sales, the Company
will not recognize the transferred assets, but recognize the financial assets equal to the transferred income, and
conduct accounting treatment for the financial assets according to the Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments.
30. Other significant accounting policy and accounting estimate
Accounting treatment methods related to repurchasing company's shares
If the Company's shares are purchased for reasons such as reducing the registered capital or rewarding
employees, they shall be treated as treasury stock according to the actual amount paid and registered for future
reference. If the repurchased shares are cancelled, the capital reserve will be offset by the difference between the
total par value of the shares calculated according to the cancelled par value and the number of cancelled shares
and the actual amount paid for the repurchase, and the retained earnings will be offset if the capital reserve is
insufficient; If the repurchased shares are awarded to the employees of the Company as equity-settled shares,
when the employees exercise the right to purchase the shares of the Company and pay the price, the cost of the
treasury stocks delivered to the employees and the accumulated amount of capital reserve (other capital reserve)
during the waiting period will be resold, and the capital reserve (equity premium) will be adjusted according to the
difference.
31. Changes in significant accounting policies and accounting estimates
(1) Significant accounting policy changes
Applicable □Not applicable
Since January 1, 2023, 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 deferred
income tax related to assets and liabilities arising from individual transactions that are not exempted from initial
recognition, and adjusted the individual transactions that are subject to this provision between the beginning of the
earliest presentation period of the financial statements when the provision is first implemented and the first
implementation date. In case of taxable temporary differences and deductible temporary differences arising from
the lease liabilities and right-of-use assets recognized due to the application of the provisions at the beginning of
the earliest presentation period of the financial statements when the provisions are first implemented, as well as
the estimated liabilities related to the recognized disposal obligation and the corresponding related assets, the
accumulated impacted number will be adjusted according to the provisions of the provisions and the Accounting
Standards for Business Enterprises No.18-Income Tax to present the beginning retained earnings of the earliest
presentation period of the financial statements and other related financial statement items.
The specific adjustments are as follows:
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Statement items significantly affected Amount affected Note
Balance sheet items on December 31,
2022
Deferred income tax assets 1,177,803.84
Undistributed profits 1,177,803.84
Income statement items in 2022
Income tax expenses -550,965.61
(2) Significant accounting estimate changes
□Applicable Not applicable
32. Others
(1) Safety production costs
The safety production costs withdrawn by the Company in accordance with the Administrative Measures for
the Collection and Utilization of Enterprise Safety Production 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
Tax category Basis of taxation Tax rate
The value-added tax received is calculated on the basis of sales of goods and
Value-added tax taxable service income calculated according to the tax law. After deducting the 13%、9%、6%[Note 1]
VAT paid allowed for the current period, the difference is VAT payable.
Excise
(consumption) Taxable sales (volume) [Note 2]
tax
Urban Actual payment of turnover tax 7%、5%
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maintenance and
construction tax
Enterprise
Taxable income [Note 3]
income tax
The remaining value after deducting 30% from the original value of the property
Property tax 1.2%、12%
in one go for ad valorem collection; the rental income for rent based collection.
Education
Actual payment of turnover tax 3%
surcharge
Local education
Actual payment of turnover tax 2%
surcharge
[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 subject to VAT at the rate of 6%. The policy of “tax exemption, credit and
refund” is implemented for export goods, and the export tax rebate rate is 13%
[Note 2] Sales of fuel oil, diesel and aviation kerosene are subject to consumption tax at RMB 1.2 yuan/liter.
Sales of gasoline and naphtha are subject to consumption tax at RMB 1.52 yuan/liter.
[Note 3] Explanation for enterprise income tax rate of taxpayers at different tax rates
Taxpayers Income tax rate
The subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd., Ningbo Zhongjin Petrochemical
Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd., 15%
Zhejiang Yongsheng Technology Co., Ltd.
The tax shall be calculated
The subsidiaries Hong Kong Sheng Hui Limited, Hong Kong Yi Sheng Da Hua Co., Limited,
and paid according to the
Yisheng New Materials Trading Co., Limited, Rongsheng Petrochemical (Hong Kong) Limited,
relevant tax rates of the
Rongsheng Petrochemical (Singapore) Pte. Ltd., Rongtong Logistics (Singapore) Pte. Ltd.,
country and region where
Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd.
the business is located.
The subsidiaries Rongxiang Chemical Fiber Co., Ltd., Rongsheng International Trade (Hainan)
20%
Co., Ltd., Dalian Yisheng New Materials Co., Ltd., Zhejiang Rongyi Trading 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
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
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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 Announcement on Deepening the Reform of Value-added Tax of the Ministry of Finance,
the State Administration of Taxation and the General Administration of Customs (Announcement No.39 of 2019
of the General Administration of Taxation of the Ministry of Finance) and the Announcement on Further
Strengthening the Implementation of the Tax Refund Policy for Value-added Tax at the End of the Period of the
Ministry of Finance and the State Administration of Taxation (Announcement No.14 of 2022 of the Ministry of
Finance and the State Administration of Taxation), the tax refund system for value-added tax at the end of the
period was tried out on April 1, 2019. The Company and part of its subsidiaries meet the relevant conditions, and
received credit refund totaling 391.36 million yuan in the current period.
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.
4. Pursuant to the Announcement on Preferential Income Tax Policies for Further Support for Development
of Small Enterprises with Meager Profit and Individually-owned Businesses (Announcement of the MOF and
STA [2023] No. 12), the preferential policy under which the enterprise income tax of small enterprises with
meager profit is levied at 20% based on 25% of taxable income will be extended until December 31, 2027. The
subsidiaries Rongxiang Chemical Fiber Co., Ltd., Rongsheng International Trade (Hainan) Co., Ltd., Dalian
Yisheng New Materials Co., Ltd. and Zhejiang Rongyi Trading Co., Ltd. meet the above requirements in the
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current period. Urban maintenance and construction tax, education surcharge and local education surcharge for
small enterprises with meager profit are reduced by half and the subsidiary Dalian Yisheng New Materials Co.,
Ltd. meets the above requirements in the current period.
5. According to the Announcement on the Policy of Adding and Deducting Value-added Tax for Advanced
Manufacturing Enterprises of the Ministry of Finance and State Taxation Administration（ Announcement No.43
of the Ministry of Finance and the State Administration of Taxation in 2023）, from January 1, 2023 to December
31, 2027, advanced manufacturing enterprises are allowed to add 5% to the deductible input tax for offsetting the
payable value-added tax in the current period. In the current period, subsidiaries Zhejiang Shengyuan Chemical
Fiber Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., Zhejiang
Petroleum & Chemical Co., Ltd. and Zhejiang Yongsheng Technology Co., Ltd. are entitled to the above-
mentioned policy of adding and deducting.
6. 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 subsidiaries Yisheng Dahua Petrochemical Co., Ltd. and Zhejiang Petroleum & Chemical Co., Ltd.
have purchased these special equipment and enjoy such preferential policy.
7. 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 (XZBF [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.
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.
VII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
Unit: RMB
Item Closing balance Opening balance
Cash on hand 1,499,665.59 947,398.91
Bank deposit 11,121,148,364.87 14,971,568,361.00
Other monetary funds 1,947,607,435.56 3,266,258,620.30
Total 13,070,255,466.02 18,238,774,380.21
Including: Total amount of overseas
2,007,064,372.61 2,459,323,215.90
deposits
Other information:
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Among other monetary funds at the end of the period, RMB 771,727,000 is the deposit made for issuing
bank acceptance bills, RMB 561,350,000 is the deposit made for issuing letters of credit, RMB 250,000,000 is the
deposit made for handling bank loans, RMB 364,202,900 is deposited investment funds, RMB 1,000 is ETC
deposit, RMB 322,300 is the deposit interest accrued based on the effective interest rate method at the end of the
period, and RMB 4200 is the balance deposited by the Company in a third-party payment platform.
2. Trading financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through
310,087,429.45 188,283,362.49
gain and loss
Including: derivative financial assets 310,087,429.45 188,283,362.49
Total 310,087,429.45 188,283,362.49
3. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive of 1 year) 4,552,918,612.20 7,214,189,761.39
1-2 years 293,966,484.61 42,530,303.66
2-3 years 41,283,731.68 405,988.15
Above 3 years 387,649.73 34,813.65
Total 4,888,556,478.22 7,257,160,866.85
(2) Classified disclosure by bad debt accrual method
Unit: RMB
Closing balance Opening balance
Bad-debt Bad-debt Book
Book balance Book balance
provision provision value
Category Book
Provisi Provisi
Amoun Amoun on value Amoun Amoun on
Ratio Ratio
t t proport t t proport
ion ion
Accounts
receivable
with
provision for 4,888,5 4,737,7 7,257,1 7,128,0
100.00 150,822 100.00 129,149
bad debt 56,478. 3.09% 33,703. 60,866. 1.78% 11,047.
% ,774.56 % ,819.82
reserves 22 66 85 03
based on
aging
portfolio
4,888,5 4,737,7 7,257,1 7,128,0
100.00 150,822 100.00 129,149
Total 56,478. 3.09% 33,703. 60,866. 1.78% 11,047.
% ,774.56 % ,819.82
22 66 85 03
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Accounts receivable with provision for bad debt reserves based on aging portfolio:
Unit: RMB
Closing balance
Name
Book balance Bad-debt provision Provision proportion
Trade fund portfolio of
2,801,455,036.87 21,080,178.11 0.75
overseas subsidiaries
Aging portfolio 2,087,101,441.35 129,742,596.45 6.22
Subtotal 4,888,556,478.22 150,822,774.56 3.09
If the provision for bad debts of accounts receivable is accrued according to the general model of expected credit
loss:
□Applicable Not applicable
(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
Opening
Category Recovered or Closing balance
balance Provision Write-off Others
returned
Provision made for bad
debt reserves based on 129,149,819.82 78,901,531.02 57,228,576.28 150,822,774.56
aging portfolio
Total 129,149,819.82 78,901,531.02 57,228,576.28 150,822,774.56
Note: Other changes refer to transfer-out of provision for bad debts of the subsidiary Zhoushan Yushan
Petrochemical Engineering Co., Ltd., which was excluded from the consolidation scope as its equity was
transferred out by the Company in the current period.
(4) Accounts receivables and contract assets with top 5 closing balances by debtor
Unit: RMB
Closing balance
Proportion of of bad debt
Closing Closing balance accounts provision for
Closing balance of
balance of of accounts receivable and accounts
Company name accounts
contract receivable and total closing receivable and
receivable
assets contract assets balance of impairment
contract assets provision of
contract assets
Sinopec Sales Co., Ltd. East
966,035,917.72 966,035,917.72 19.76% 48,301,795.89
China Branch
Zhejiang Haigang
642,755,025.00 642,755,025.00 13.15%
International Trade Co., Ltd.
ENEOS CORPORATION 353,557,524.80 353,557,524.80 7.23
Sinopec Chemical
Commercial Holding
331,346,967.46 331,346,967.46 6.78 16,567,348.37
Company Limited East China
Branch
194 / 269
Full Text of 2023 Annual Report
Zhejiang Yisheng
317,158,242.68 317,158,242.68 6.49% 38,391,748.43
Petrochemical Co., Ltd.
Total 2,610,853,677.66 2,610,853,677.66 53.41% 103,260,892.69
4. Receivables financing
(1) Classified presentation of receivables financing
Unit: RMB
Item Closing balance Opening balance
Banker’s acceptance 175,036,242.93 187,298,909.35
Total 175,036,242.93 187,298,909.35
(2) Receivable financing pledged by the Company at the end of the period
Unit: RMB
Item Pledged amount at the end of the period
Banker’s acceptance 263,131.23
Total 263,131.23
(3) Receivables financing endorsed or discounted by the company at the end of the period and not expired
yet on the balance sheet date
Unit: RMB
Amount with recognition terminated Amount with recognition not
Item
at the end of the period terminated at the end of the period
Banker’s acceptance 2,482,403,194.70 0.00
Total 2,482,403,194.70 0.00
5. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 4,510,228,597.49 4,262,221,292.97
Total 4,510,228,597.49 4,262,221,292.97
1) Classification of other receivables by nature
Unit: RMB
Nature of account Ending book balance Beginning book balance
Portfolio grouped with government funds
4,013,740,226.69 3,670,422,597.36
receivable
Portfolio grouped with settlement funds
60,243,144.32 126,333,617.88
of paper trade
Portfolio grouped with deposits for
85,908,960.00 145,908,960.00
borrowings
195 / 269
Full Text of 2023 Annual Report
Portfolio grouped with futures margin 317,793,118.68 272,529,752.95
Portfolio grouped with security deposits 34,082,287.67 41,469,354.87
Portfolio grouped with petty cash
26,389,252.01 13,736,810.60
receivable, etc.
Portfolio grouped with intercompany
10,810,665.07 5,383,742.27
balances
Total 4,548,967,654.44 4,275,784,835.93
2) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive of 1 year) 2,890,584,356.52 4,114,598,428.50
1-2 years 1,565,488,732.75 47,417,515.49
2-3 years 44,802,241.88 82,314,027.88
Above 3 years 48,092,323.29 31,454,864.06
Total 4,548,967,654.44 4,275,784,835.93
3) Classified disclosure by bad debt accrual method
Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categor
y Provisio Book Provisio Book
n value n value
Amount Ratio Amount Amount Ratio Amount
proporti proporti
on on
Provisio
n made
for bad
debt 4,548,96 38,739,0 4,510,22 4,275,78 13,563,5 4,262,22
100.00% 0.85% 100.00% 0.32%
reserves 7,654.44 56.95 8,597.49 4,835.93 42.96 1,292.97
based on
aging
portfolio
4,548,96 38,739,0 4,510,22 4,275,78 13,563,5 4,262,22
Total 100.00% 0.85% 100.00% 0.32%
7,654.44 56.95 8,597.49 4,835.93 42.96 1,292.97
Provision for bad debts on a collective basis: RMB 38,739,056. 95.
Other receivables with provision for bad debts on a collective basis
Unit: RMB
Closing balance
Name
Book balance Bad-debt provision Provision proportion
Portfolio grouped with
4,013,740,226.69 18,451,888.00 0.46%
government funds receivable
Portfolio grouped with 60,243,144.32
settlement funds of paper
196 / 269
Full Text of 2023 Annual Report
trade
Portfolio grouped with
85,908,960.00
deposits for borrowings
Portfolio grouped with futures
317,793,118.68
margin
Portfolio grouped with
34,082,287.67 12,161,873.18 35.68%
security deposits
Portfolio grouped with petty
26,389,252.01 6,231,452.95 23.61%
cash receivable, etc.
Portfolio grouped with
10,810,665.07 1,893,842.82 17.52%
intercompany balances
Total 4,548,967,654.44 38,739,056.95 0.85%
Book balance changes with significant changes in loss provisions in the current period
□Applicable Not applicable
4) Provision for bad debts is made according to the general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss for
Item In the next 12 months over the entire duration the entire duration Total
Expected credit loss (without credit (credit impairment has
impairment) occurred)
Amount at the
beginning of the 1,518,350.96 878,119.54 11,167,072.46 13,563,542.96
period
Amount at the
beginning of the —— —— ——
period
--Transferred to Stage
-207,264.64 207,264.64
2
--Transferred to Stage
-616,592.19 616,592.19
3
--Transferred to Stage
2
--Transferred to Stage
1
Provision in current
946,653.51 18,397,625.28 7,025,746.70 26,370,025.49
period
Withdrawal or reversal
in the current period
Write-off in the
current period
Other changes [Note] 1,194,511.50 1,194,511.50
Amount at the end of
2,257,739.83 18,866,417.27 17,614,899.85 38,739,056.95
the period
Note: Other changes refer to transfer-out of provision for bad debts of the subsidiary Zhoushan Yushan
Petrochemical Engineering Co., Ltd., which was excluded from the consolidation scope as its equity was
transferred out by the Company in the current period.
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5) Provision made, recovered or reversed for bad debts in the current period
Unit: RMB
The amount of change in the current period
Opening Closing
Category Recovered or Write-off or
balance Provision Others balance
returned cancellation
Provision made
for bad debt
reserves based 13,563,542.96 26,370,025.49 1,194,511.50 38,739,056.95
on aging
portfolio
5) Top five debtors with the biggest closing balances of other accounts receivable
Unit: RMB
Proportion in Closing
total closing balance of
Nature of
Company name Closing balance Aging balance of provision
payment
other for bad
receivables debts
Tax refund
Consumption tax refund receivable 1,723,942,226.69 Within 1 year 37.90%
receivables
Zhoushan Green Petrochemical Base Grants 18,451,888
1,545,798,000.00 1-2 year(s) 33.98%
Management Committee [Note 1] receivables .00
People’s government of Yinong Town, Grants
644,000,000.00 Within 1 year 14.16%
Xiaoshan District, Hangzhou [Note 2] receivables
Investment Promotion Agency of Grants
100,000,000.00 Within 1 year 2.20%
Xiaoshan District, Hangzhou [Note 2] receivables
Deposits for 1-2 years, 2-3 years
Huarong Financial Leasing Co., Ltd. 70,908,960.00 1.56%
borrowings and over 3 years
18,451,888
Subtotal 4,084,649,186.69 89.80%
.00
Note 1: As of the date of approval for issuing the financial statements, the Company has received subsidies of
500,000,000.00 yuan.
Note 2: As of the date of approval for issuing the financial statements, the Company has received subsidies of
744,000,000.00 yuan.
6. Advance payments
(1) Advance payments presented by age
Unit: RMB
Closing balance Opening balance
Aging
Amount Ratio Amount Ratio
Within 1 year 1,433,838,902.86 96.02% 2,522,481,841.45 98.61%
1-2 years 51,983,340.46 3.48% 35,638,283.54 1.39%
2-3 years 7,490,222.54 0.50%
Total 1,493,312,465.86 100.00% 2,558,120,124.99 100.00%
198 / 269
Full Text of 2023 Annual Report
Explanation of the reasons why the prepayment with an age of more than one year and an important amount has
not been settled in time:
At the end of the period, there are no significant prepayments with an age of more than one year
(2) Top five payers with the biggest closing balances of advance payments
Proportion to the total balance
Debtors Book balance of advances paid
Proportion of balances (%)
Zhenhai Customs of the People’s Republic of China 907,557,531.73 60.77
PetroChina Company Limited Northeast Chemical Sales
92,189,143.83 6.17
Liaoyang Branch
Dalian Fujia Dahua Petroleum & Chemical Co., Ltd. 58,978,266.23 3.95
Shanghai Huayi Energy Chemical Co., Ltd. 38,162,703.30 2.56
China-Base Ningbo Group Co., Ltd. 35,500,000.02 2.38
Subtotal 1,132,387,645.11 75.83
7. Inventories
Whether the company is subject to disclosure requirements for the real estate industry
No
(1) Classification of inventories
Unit: RMB
Closing balance Opening 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 of
contract contract
performance performance
cost cost
38,274,190,347 38,273,851,061 38,684,253,387 38,684,037,331
Raw materials 339,286.40 216,055.92
.56 .16 .46 .54
Products in 15,957,096,293 15,947,647,283 11,833,781,904 11,764,461,907
9,449,010.11 69,319,996.22
process .96 .85 .06 .84
Commodity 7,425,770,624. 7,321,918,747. 10,300,065,925 10,087,345,429
103,851,876.74 212,720,495.66
stocks 07 33 .25 .59
Semi-finished
products
43,141,279.48 7,872,975.73 35,268,303.75
shipped in
transit
Work in
process - 252,182.13 252,182.13 276,865.36 276,865.36
outsourced
Low-value
154,719,763.85 154,719,763.85 153,788,259.61 153,788,259.61
consumables
61,855,170,491 61,733,657,342 60,972,166,341 60,689,909,793
Total 121,513,148.98 282,256,547.80
.05 .07 .74 .94
199 / 269
Full Text of 2023 Annual Report
(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
Opening Closing
Item Reversal or
balance Provision Others Others balance
write-off
Raw materials 216,055.92 339,286.40 216,055.92 339,286.40
Products in
69,319,996.22 9,449,010.11 69,319,996.22 9,449,010.11
process
Commodity
212,720,495.66 103,851,876.74 212,720,495.66 103,851,876.74
stocks
Semi-finished
products
7,872,975.73 7,872,975.73
shipped in
transit
Total 282,256,547.80 121,513,148.98 282,256,547.80 121,513,148.98
(3) Other creditors investments due within one year
□Applicable Not applicable
8. Other current assets
Unit: RMB
Item Closing balance Opening balance
Input VAT to be credited 4,338,748,642.91 1,131,926,010.21
Prepaid enterprise income tax 797,324.80 1,335,755,359.29
Prepaid consumption tax 957,583,006.60
Total 5,297,128,974.31 2,467,681,369.50
9. Long-term equity investment
Unit: RMB
200 / 269
Full Text of 2023 Annual Report
Increase and decrease in the current period
Opening Opening Investment Other Declared Closing
Closing
balance balance of gains or losses comprehens Other distribution Provision balance of
Investee Additional Reduced balance (book
(book impairment recognized ive income equity of cash for Others provision for
investment investment value)
value) provision under the adjustment changes dividends impairment impairment
equity method s or profits
I. Joint ventures
II. Associated enterprise
Zhejiang Yisheng Petrochemical 2,691,757,6 4,855,124.7 2704956582.6
8,343,778.94
Co., Ltd. 78.94 7 5
-
231,733,252
Ningbo Hengyi Trading Co., Ltd. -62,971,541.07 1,198,206.2 167563505.10
.44
7
Zhejiang Xiaoshan Rural 2,006,079,8 33,144,430. 39,685,918. 2265598668.7
266,060,316.74
Commercial Bank Co., Ltd. 40.15 66 80 5
Zhejiang Jurong Petroleum & 14,454,169. 14,464,520.
10,351.33
Chemical Sales Co., Ltd. 54 87
Zhejiang Kunsheng Petroleum & 13,221,013. 19,212,208.
5,991,195.23
Chemical Sales Co., Ltd. 56 79
-
Hainan Yisheng Petrochemical Co., 3,302,885,7 3483137669.7
184,245,662.05 3,993,750.8
Ltd. 58.56 2
9
ZPC-ENN (Zhoushan) Gas Co., 12,729,631.
-3,791,763.23 8937867.92
Ltd. 15
Zhejiang Dingsheng Petrochemical 32,038,237.
11,756,366.33 43794603.87
Engineering Co., Ltd. 54
Zhejiang Derong chemicals Co. 342,047,728 100,000,000 - 3,987,51
296641210.33
Ltd. .85 .00 149,394,037.09 8.57
-
Zhoushan ZPC Zhougang Tugboat 61,965,559. 6,500,000.0
18,805,907.31 15,827.9 74255638.79
Co., Ltd. 46 0
8
Ningbo Coastal Public Pipe Gallery 6,301,526.0
-789,822.69 5511703.40
Co., Ltd. 9
Zhejiang Zhenshi Port Service Co., 18,115,410.
3,886,184.41 22001594.48
Ltd. 07
Zhejiang Dongjiang Green
117,500,000
Petrochemical Technology -6,187,600.05 111312399.95
.00
Innovation Center Co., Ltd.
8,733,329,8 217,500,000 33,676,729. 32,807,598. 3,971,69 46,185,918. 9183711444.9
Subtotal 275,964,998.21
06.35 .00 66 27 0.59 80 6
8,733,329,8 217,500,000 33,676,729. 32,807,598. 3,971,69 46,185,918. 9183711444.9
Total 275,964,998.21
06.35 .00 66 27 0.59 80 6
201 / 269
Full Text of 2023 Annual Report
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□Applicable Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable Not applicable
10. Investment properties
(1) Investment real estate under the cost measurement mode
Applicable □Not applicable
Unit: RMB
Houses and Construction in
Item Land-use right Total
buildings progress
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. Closing balance 14,286,632.00 14,286,632.00
II. Accumulated depreciation and accumulated
amortization
1. Initial balance 3,619,611.40 3,619,611.40
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. Closing balance 3,891,057.40 3,891,057.40
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. Closing balance
IV. Book value
202 / 269
Full Text of 2023 Annual Report
1. Closing book value 10,395,574.60 10,395,574.60
2. Beginning book value 10,667,020.60 10,667,020.60
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□Applicable Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable Not applicable
(2) Investment real estate under the fair value method
□Applicable Not applicable
11. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 219,699,679,397.52 222,161,110,736.65
Liquidation of fixed assets
Total 219,699,679,397.52 222,161,110,736.65
(1) Fixed assets
Unit: RMB
Housing and Machinery and Transportation Other
Item Total
buildings equipment facilities equipment
I. Original book value:
69,834,680,127. 182,919,839,33 253,326,044,05
1. Initial balance 242,890,945.99 328,633,655.38
08 0.11 8.56
2. Increase in the current 1,363,425,105.5 11,407,943,199. 12,810,553,143.
11,364,166.00 27,820,672.64
period 7 68 89
(1) Acquisition 9,541,274.43 251,233,033.65 11,364,166.00 27,820,672.64 299,959,146.72
(2) Transfer-in from 1,353,883,831.1 11,156,710,166. 12,510,593,997.
construction in progress 4 03 17
(3) Increase due to
business merger
3. Decrease in the current
133,226,322.21 6,376,671.31 2,894.33 139,605,887.85
period
(1) Disposal or
30,662,219.64 4,810,299.63 2,894.33 35,475,413.60
scrapping
2) Decrease in combination scope 102,564,102.57 1,566,371.68 104,130,474.25
71,198,105,232. 194,194,556,20 265,996,991,31
4. Closing balance 247,878,440.68 356,451,433.69
65 7.58 4.60
II. Accumulated depreciation
5,369,690,269.9 25,406,562,812. 31,153,393,649.
1. Initial balance 171,391,329.11 205,749,238.47
1 20 69
2. Increase in the current 3,432,758,156.8 11,640,019,090. 15,160,434,591.
31,842,803.97 55,814,539.68
period 6 87 38
3,432,758,156.8 11,640,019,090. 15,160,434,591.
(1) Accrual 31,842,803.97 55,814,539.68
6 87 38
203 / 269
Full Text of 2023 Annual Report
3. Decrease in the current
23,292,758.97 4,761,093.62 2,143.62 28,055,996.21
period
1) Disposal or
5,688,646.49 4,174,594.58 2,143.62 9,865,384.69
scrapping
2) Decrease in combination scope 17,604,112.48 586,499.04 18,190,611.52
8,802,448,426.7 37,023,289,144. 46,285,772,244.
4. Closing balance 198,473,039.46 261,561,634.53
7 10 86
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. Closing balance 11,539,672.22 11,539,672.22
IV. Book value
62,395,656,805. 157,159,727,39 219,699,679,39
1. Closing book value 49,405,401.22 94,889,799.16
88 1.26 7.52
64,464,989,857. 157,501,736,84 222,161,110,73
2. Beginning book value 71,499,616.88 122,884,416.91
17 5.69 6.65
(2) Fixed assets with the certificate of title not transacted
Unit: RMB
Reasons for incomplete certificates
Item Book value
of title
Houses and buildings - tank farm, supporting
5,586,274,849.79 Still being processed
buildings and others of ZPC
Houses and buildings - polymerization building
and others of Zhejiang Shengyuan Chemical 382,452,935.95 Still being processed
Fiber Co., Ltd.
Houses and buildings -office buildings and
others of Yisheng Dahua Petrochemical Co., 282,711,153.86 Still being processed
Ltd.
Houses and buildings -warehouse, supporting
facilities and others of Zhejiang Yisheng New 166,325,102.40 Still being processed
Materials Co., Ltd.
Houses and buildings -- flow shop of Zheyou
87,545,609.29 Still being processed
Technology Co. Ltd.
Houses and buildings -film warehouse and
others of Zhejiang Yongsheng Technology Co. 44,256,296.24 Still being processed
Ltd.
(3) Impairment test of fixed assets
□Applicable Not applicable
12. Construction in progress
Unit: RMB
204 / 269
Full Text of 2023 Annual Report
Item Closing balance Opening balance
Construction in progress 40,987,208,589.89 24,590,757,677.89
Engineering materials 833,462,480.70 1,544,399,951.56
Total 41,820,671,070.59 26,135,157,629.45
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Item Book Provision for Book Provision for
Book value Book value
balance impairment balance impairment
1.4 million tons ethylene
and downstream chemical
15,402,756,1 15,402,756,1 14,276,035,7 14,276,035,7
plant (optimization of
24.76 24.76 63.50 63.50
product structure of Phase
II project)
Utilities and supporting 14,708,733,8 14,708,733,8 6,020,862,10 6,020,862,10
facilities 90.06 90.06 4.28 4.28
Functional polyester film
expansion project with an 1,206,752,26 1,206,752,26 967,377,971. 967,377,971.
annual output of 250,000 6.57 6.57 40 40
tons per year
High performance resin 2,930,448,03 2,930,448,03 446,159,950. 446,159,950.
project 1.11 1.11 48 48
High-end new material 888,295,228. 888,295,228. 17,358,490.5 17,358,490.5
project 78 78 9 9
Jintang New Material 507,816,831. 507,816,831. 41,739,407.9 41,739,407.9
Project 97 97 7 7
5,342,406,21 5,342,406,21 2,821,223,98 2,821,223,98
Sporadic projects
6.64 6.64 9.67 9.67
40,987,208,5 40,987,208,5 24,590,757,6 24,590,757,6
Total
89.89 89.89 77.89 77.89
(2) Changes in major construction in progress in the current period
Unit: RMB
Inclu Inte
Amou ding: rest
nt of Accu Capit capi
Other
Incre fixed Perce mulat alized taliz
decre
ase in assets ntage ed amou atio
Openi ases Closin Proje
the carrie of the capita nt of n
Budge ng in the g ct Sources
Project curre d over actual lized intere rate
t balan curre balan progr of fund
nt in the cost to amou st in in
ce nt ce ess
perio curre budge nt of the the
perio
d nt t (%) intere curre curr
d
perio st nt ent
d perio peri
d od
1.4 million Bank
34,485 14,276 6,393, 5,266, 15,402 845,24 585,33
tons 94.53 3.58 loans,
,170,0 ,035,7 573,51 853,15 ,756,1 90% 4,407. 6,414.
ethylene % % other
00.00 63.50 6.43 5.17 24.76 54 92
and sources
205 / 269
Full Text of 2023 Annual Report
downstream
chemical
plant
(optimizatio
n of product
structure of
Phase II
project)
Bank
Utilities and 6,020, 15,454 6,766, 14,708 444,30 196,01
3.38 loans,
supporting 862,10 ,740,3 868,53 ,733,8 7,862. 7,367.
% other
facilities 4.28 17.93 2.15 90.06 46 28
sources
High Bank
18,275 446,15 2,484, 2,930, 30,989 30,989
performanc 18.12 3.28 loans,
,500,0 9,950. 288,08 448,03 18% ,557.6 ,557.6
e resin % % other
00.00 48 0.63 1.11 0 0
project sources
52,760 20,743 24,332 12,033 33,041 1,320, 812,34
Total ,670,0 ,057,8 ,601,9 ,721,6 ,938,0 541,82 3,339.
00.00 18.26 14.99 87.32 45.93 7.60 80
(3) Impairment test of construction in progress
□Applicable Not applicable
(4) Engineering materials
Unit: RMB
Closing balance Opening balance
Item Provision
Provision for
Book balance for Book value Book balance Book value
impairment
impairment
Special
507,367,195.93 507,367,195.93 1,170,107,409.07 1,170,107,409.07
materials
Special
326,095,284.77 326,095,284.77 374,292,542.49 374,292,542.49
Equipment
Total 833,462,480.70 833,462,480.70 1,544,399,951.56 1,544,399,951.56
13. Right-of-use assets
(1) Situation of 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 5,061,872.72 5,061,872.72
Disposal 5,061,872.72 5,061,872.72
4. Closing balance 285,203,745.16 285,203,745.16
II. Accumulated depreciation
206 / 269
Full Text of 2023 Annual Report
1. Initial balance 64,658,849.54 64,658,849.54
2. Increase in the current period 25,504,627.18 25,504,627.18
(1) Accrual 25,504,627.18 25,504,627.18
3. Decrease in the current period 5,061,872.72 5,061,872.72
(1) Disposal 5,061,872.72 5,061,872.72
4. Closing balance 85,101,604.00 85,101,604.00
III. Provision for impairment
1. Initial balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book value 200,102,141.16 200,102,141.16
2. Beginning book value 225,606,768.34 225,606,768.34
(2) Impairment test of right-of-use assets
□Applicable Not applicable
14. Intangible assets
(1) Intangible assets
Unit: RMB
Pollution
Land-use Know- Management Sea area use
Item dumping Total
right how software right
right
I. Original book value
6,628,695,167 5,879,510. 131,600,298.1 6,852,334,209
1. Initial balance 59,311,084.87 26,848,149.00
.07 85 4 .93
2. Increase in the current 1,387,072,144 1,399,838,065
1,136,106.22 11,629,814.94
period .80 .96
1,387,072,144 1,399,838,065
(1) Acquisition 1,136,106.22 11,629,814.94
.80 .96
(2) Internal R&D
(3) Increase due to
business merger
3. Decrease in the current 112,394,478.6
94,178,868.60 18,215,610.00
period 0
(1) Decrease in 112,394,478.6
94,178,868.60 18,215,610.00
combination scope 0
7,921,588,443 5,879,510. 113,384,688.1 8,139,777,797
4. Closing balance 60,447,191.09 38,477,963.94
.27 85 4 .29
II. Accumulated amortization
207 / 269
Full Text of 2023 Annual Report
705,649,558.2 4,354,353. 105,115,117.4 854,562,328.8
1. Initial balance 22,900,082.84 16,543,216.61
2 66 8 1
2. Increase in the current 160,768,891.6 188,679.2 182,224,281.4
6,134,136.61 11,067,070.62 4,065,503.32
period 9 4 8
160,768,891.6 188,679.2 182,224,281.4
(1) Accrual 6,134,136.61 11,067,070.62 4,065,503.32
9 4 8
3. Decrease in the current
11,615,393.73 14,323,831.71 25,939,225.44
period
(1) Decrease in
11,615,393.73 14,323,831.71 25,939,225.44
combination scope
854,803,056.1 4,543,032. 101,858,356.3 1,010,847,384
4. Closing balance 29,034,219.45 20,608,719.93
8 90 9 .85
III. Provision for impairment
1. Initial balance
2. Increase in the current
period
(1) Accrual
3. Decrease in the current
period
(1) Disposal
4. Closing balance
IV. Book value
7,066,785,387 1,336,477. 7,128,930,412
1. Closing book value 31,412,971.64 11,526,331.75 17,869,244.01
.09 95 .44
5,923,045,608 1,525,157. 5,997,771,881
2. Beginning book value 36,411,002.03 26,485,180.66 10,304,932.39
.85 19 .12
(2) Impairment test of intangible assets
□Applicable Not applicable
15. Long-term deferred expenses
Unit: RMB
Amortization
Increase in the
Item Opening balance amount in the Other reductions Closing balance
current period
current period
Improvement
expense for fixed
assets rented 117,159.13 71,458.00 45,701.13
through operating
lease
Total 117,159.13 71,458.00 45,701.13
16. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
Unit: RMB
208 / 269
Full Text of 2023 Annual Report
Closing balance Opening balance
Item Deductible Deferred income tax Deductible Deferred income tax
temporary difference assets temporary difference assets
Provision for impairment of
246,050,247.19 42,463,572.53 359,105,143.75 59,820,985.40
assets
Unrealized profits from
63,697,197.61 13,460,223.08 174,649,487.88 7,817,620.70
internal transactions
Deductible unrecovered
6,398,196,587.74 1,157,432,552.84 1,926,924,516.34 322,308,341.68
losses
Deferred income 186,812,473.21 28,932,982.09 186,228,230.49 30,561,612.33
Lease liabilities 195,424,408.50 29,313,661.28 208,086,032.91 31,212,904.94
Changes in fair value of
trading financial
137,921,940.29 21,006,601.04 103,171,027.61 16,689,662.09
instruments and derivative
financial instruments
Total 7,228,102,854.54 1,292,609,592.86 2,958,164,438.98 468,411,127.14
(2) Deferred income tax liabilities before offset
Unit: RMB
Closing balance Opening balance
Item Taxable Deferred
Deferred income Taxable temporary
temporary income tax
tax liabilities differences
differences liabilities
Changes in fair value of trading
financial instruments and derivative 309,098,071.08 49,549,153.55 188,283,362.48 14,181,961.06
financial instruments
Right-of-use assets 184,427,099.32 27,664,064.90 200,234,007.34 30,035,101.10
The parent company, reflected at the
level of consolidated statements, invests
the loan as paid-in capital into the
2,147,934,662.52 326,849,061.47 2,232,554,629.20 334,883,194.38
subsidiary company, which serves as the
loan interest for the capitalization of
long-term asset construction.
One time pre-tax deduction of long-term
10,872,084,425.53 1,630,812,663.83 10,979,341,858.26 1,646,901,278.74
assets
Government grants 744,000,000.00 186,000,000.00
Total 14,257,544,258.45 2,220,874,943.75 13,600,413,857.28 2,026,001,535.28
(3) Deferred tax assets or liabilities, net of offsets
Unit: RMB
Amount of deferred Closing balance of Deferred tax assets Opening balance of
tax assets and deferred tax assets or and liabilities offset at deferred tax assets or
Item
liabilities offset at the liabilities after the beginning of liabilities after
end of the period offsetting period offsetting
Deferred income tax
601,800,714.78 690,808,878.08 70,030,134.16 398,380,992.98
assets
Deferred income tax
601,800,714.78 1,619,074,228.97 70,030,134.16 1,955,971,401.12
liabilities
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Full Text of 2023 Annual Report
(4) Details of unrecognized deferred tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible loss 3,808,384,773.87 4,786,039,765.48
Changes in fair value of trading financial instruments
74,162,385.08 74,384,267.98
and derivative financial instruments
Deferred income 8,769,120.04 9,434,323.24
Unrealized profits from internal transactions
Provision for impairment of assets 26,285,676.35 77,404,439.05
Lease liabilities 18,116,777.97 27,604,783.67
Total 3,935,718,733.31 4,974,867,579.42
(5) The deductible losses of unrecognized deferred income tax assets will be due in the following years
Unit: RMB
Year Ending amount Beginning amount
2023 795,881,505.75
2024 585,681,449.15 649,192,751.95
2025 869,483,144.03 892,628,563.63
2026 852,380,510.77 942,842,859.62
2027 1,094,661,596.29 1,098,455,315.24
2028 406,178,073.63
2029
2030
2031
2032 407,038,769.29
2033
Total 3,808,384,773.87 4,786,039,765.48
17. Other non-current assets
Unit: RMB
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Prepayment for
4,445,441,053 4,445,441,053 2,794,937,800 2,794,937,800
purchase of long-term
.45 .45 .46 .46
assets
Rental value of silver 411,214,415.9 411,214,415.9 411,214,415.9 411,214,415.9
leased in 6 6 6 6
4,856,655,469 4,856,655,469 3,206,152,216 3,206,152,216
Total
.41 .41 .42 .42
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18. Assets with restricted ownership or use rights
Unit: RMB
Period end Period beginning
Item Restri Restri
Book Book Restriction Book Book Restriction
ction ction
balance value situation balance value situation
type type
Issue letters of Issue letters of
Deposi credit, bills, Depos credit, bills, letters
Monetary 1,583,400, 1,583,400 t letters of 2,779,494 2,779,494, it of guarantee,
fund 368.50 ,368.50 occupa guarantee, ,576.43 576.43 occup borrowings, silver
tion borrowings and ation leases and other
other deposits deposits
Accounts
263,131.2 3,316,973 3,316,973.
receivable 263,131.23 Pledge Issue bill pledge Pledge Issue bill pledge
3 .51 51
financing
Bank loan
Bank loan mortgage,
Fixed 226,875,01 194,464,2 Mortga mortgage, letter 217,071,8 197,784,4 Mortg
letter of credit
assets 1,143.49 80,744.52 ge of credit 80,411.54 60,482.89 age
mortgage
mortgage
Bank loan
Bank loan mortgage,
Intangible 5,608,715, 5,135,074 Mortga mortgage, letter 4,409,441 4,043,802, Mortg
letter of credit
assets 198.07 ,543.17 ge of credit ,534.82 390.99 age
mortgage
mortgage
Bank loan
Construct Bank loan mortgage,
29,889,674 29,889,67 Mortga mortgage, letter 20,075,08 20,075,08 Mortg
ion in letter of credit
,426.59 4,426.59 ge of credit 2,279.55 2,279.55 age
progress mortgage
mortgage
263,957,06 231,072,6 244,339,2 224,686,1
Total
4,267.88 93,214.01 15,775.85 56,703.37
19. Short-term borrowings
(1) Categories of short-term borrowings
Unit: RMB
Item Closing balance Opening balance
Mortgage borrowing 198,000,000.00
Guaranteed loan 43,817,771,706.43 24,978,544,183.97
Credit borrowings 795,165,061.51 1,391,008,216.53
Total 44,810,936,767.94 26,369,552,400.50
20. Trading financial liabilities
Unit: RMB
Item Closing balance Opening balance
Trading financial liabilities 623,298,741.33 588,769,711.55
Including: derivative financial liabilities 78,931,785.08 102,366,489.48
Including: fair value of silver leased 544,366,956.25 486,403,222.07
Total 623,298,741.33 588,769,711.55
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Full Text of 2023 Annual Report
21. Notes payable
Unit: RMB
Category Closing balance Opening balance
Banker’s acceptance 4,195,471,402.63 3,408,800,462.03
Total 4,195,471,402.63 3,408,800,462.03
22. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Closing balance Opening balance
Payable for material procurement and
39,250,503,194.27 57,051,576,225.73
operation
Payable for purchase of long-term assets 10,493,623,707.11 12,027,790,750.70
Total 49,744,126,901.38 69,079,366,976.43
23. Other payables
Unit: RMB
Item Closing balance Opening balance
Dividends payable 228,000,000.00 108,000,000.00
Other payables 16,691,133,504.47 3,364,604,671.47
Total 16,919,133,504.47 3,472,604,671.47
(1) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Dividends payable on ordinary shares by
228,000,000.00 108,000,000.00
subsidiaries
Total 228,000,000.00 108,000,000.00
(2) Other payables
1) Other payables listed by the nature of payment
Unit: RMB
Item Closing balance Opening balance
Entrusted loan 787,149,197.50 989,433,904.99
Current accounts 14,776,720,257.46 1,539,513,447.19
Deposit and security 826,693,128.75 718,412,933.85
Settled but unpaid operating expenses 278,440,701.05 98,302,534.15
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Full Text of 2023 Annual Report
Others 22,130,219.71 18,941,851.29
Total 16,691,133,504.47 3,364,604,671.47
24. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Loans 4,421,732,432.83 3,734,262,391.81
Total 4,421,732,432.83 3,734,262,391.81
25. Employee remuneration payable
Presentation of employee remuneration payable
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I. Short-term remuneration 1,014,193,651.21 3,698,131,648.59 3,693,064,746.53 1,019,260,553.27
II. Post-employment benefits -
8,517,450.91 141,909,234.78 137,466,462.40 12,960,223.29
defined contribution plan
III. Dismissal welfare 234,554.24 234,554.24
Total 1,022,711,102.12 3,840,275,437.61 3,830,765,763.17 1,032,220,776.56
(2) Short-term remuneration
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
1. Wage, bonus, allowance and subsidy 1,006,507,629.78 3,471,274,591.09 3,467,156,143.57 1,010,626,077.30
2. Employee welfare expenses 21,636,006.73 21,636,006.73
3. Social insurance premium 6,762,820.48 96,941,546.00 96,216,717.17 7,487,649.31
Including: Medical insurance
6,309,552.30 83,803,760.99 83,584,513.35 6,528,799.94
premium
Work-related injury
453,268.18 12,299,116.10 11,793,534.91 958,849.37
insurance premium
4. Housing provident fund 234,695.00 78,548,229.76 78,491,970.76 290,954.00
5. Labor union and personnel education
688,505.95 29,731,275.01 29,563,908.30 855,872.66
expenses
Total 1,014,193,651.21 3,698,131,648.59 3,693,064,746.53 1,019,260,553.27
(3) Presentation of defined contribution plan
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
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Full Text of 2023 Annual Report
1. Basic endowment insurance 8,222,090.39 137,046,231.53 132,738,922.51 12,529,399.41
2. Unemployment insurance
295,360.52 4,863,003.25 4,727,539.89 430,823.88
premium
Total 8,517,450.91 141,909,234.78 137,466,462.40 12,960,223.29
26. Taxes payable
Unit: RMB
Item Closing balance Opening balance
Value-added tax 7,837,443.46 406,455,280.68
Excise (consumption) tax 28,973,236.05 449,500,508.31
Enterprise income tax 61,736,590.18 248,997,237.28
Individual income tax 15,229,448.50 14,735,296.18
Urban maintenance and construction tax 29,773,987.02 64,611,829.70
Property tax 30,376,665.46 25,589,744.40
Land use tax 234,528,096.28 112,480,989.03
Education surcharge 12,775,359.01 59,958,124.53
Local education surcharge 8,518,206.02 39,972,113.03
Environmental protection tax 2,831,476.99 2,886,594.15
Stamp duty 40,489,040.73 38,152,661.15
Deed tax 3,711,618.00
Vehicle and vessel tax 744.00
Total 476,781,167.70 1,463,341,122.44
27. Non-current liabilities due within one year
(1) Details
Unit: RMB
Item Closing balance Opening balance
Long-term borrowings due within one
28,229,063,293.47 20,439,097,358.80
year
Bonds payable due within one year 2,037,082,007.25
Lease liabilities due within one year 20,538,874.09 22,290,420.13
Total 30,286,684,174.81 20,461,387,778.93
(2) Increase/decrease of bonds payable: (excluding preferred stock, perpetual bond and other financial
instruments classified as financial liabilities)
Unit: RMB
Amo Repa
Issu Interes
rtiza yme
Open e in t Closi Defa
Name Coup Issue tion nt in
Par Issue ing curr accrue ng ult
of on Bond period amo of curr
value date bala ent d by balan or
bond rate unt pre ent
nce peri par ce not
miu perio
od value
ms d
214 / 269
Full Text of 2023 Annual Report
or
disco
unts
20 2020.4.2 1,029
1,000, 995,4 1184 38,60 1,030,
Rongs 1、 ,195, 38,643,
000,0 3.86% 4 years (2 + 2) 52,83 252. 0,000 423,5 No
heng 2020.4.2 433.1 870.23
00.00 0.20 61 .00 55.96
G1 2 2
This tranche of
bonds has a
maturity of 4
2020.8.3 years, with the
20 1、 right to adjust 1,005
1,000, 995,4 1121 34,50 1,006,
Rongs 2020.9.0 the nominal ,631, 34,405,
000,0 3.45% 05,66 282. 0,000 658,4 No
heng 1、 interest rate by 689.1 479.48
00.00 0.39 70 .00 51.29
G2 2020.9.0 the issuer and 1
2 sell back by the
investor at the
end of the
second year.
1,990 2,034
2305 73,10 2,037,
,858, ,827, 73,049,
Total —— 535. 0,000 082,0 ——
490.5 122.2 349.71
31 .00 07.25
9 3
28. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Output tax to be transferred 551,990,844.96 458,588,848.28
Total 551,990,844.96 458,588,848.28
29. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
Item Closing balance Opening balance
Mortgage borrowing 400,775,733.62
Guaranteed loan 25,540,063,351.05 26,613,442,784.59
Credit borrowings 462,895,972.33 312,343,200.00
Mortgage and guarantee borrowings 98,775,848,764.18 104,036,600,984.70
Total 125,179,583,821.18 130,962,386,969.29
30. Bonds payable
(1) Bonds payable
Unit: RMB
Item Closing balance Opening balance
Green corporate bonds (second tranche) 1,029,195,433.12
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Full Text of 2023 Annual Report
Green corporate bonds (third tranche) 1,005,631,689.11
Total 2,034,827,122.23
(2) Increase/decrease of bonds payable: (excluding preferred stock, perpetual bond and other financial
instruments classified as financial liabilities)
Please refer to section V (I) 27 (2) of notes to the financial statements for details of the changes
31. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Lease payments 241,120,991.44 276,960,637.05
Unacknowledged financial charges -48,118,679.06 -63,560,240.60
Total 193,002,312.38 213,400,396.45
32. Deferred income
Unit: RMB
Increase in the Decrease in the Reasons for
Item Opening balance Closing balance
current period current period incurrence
Government grants 195,662,553.73 46,150,000.00 46,230,960.48 195,581,593.25 Related to assets
Total 195,662,553.73 46,150,000.00 46,230,960.48 195,581,593.25 --
33. Share capital
Unit: RMB
Increase and decrease of this change (+, -)
Conversion
Opening balance Issue of Closing balance
New issue of provident
bonus Others Subtotal
of shares fund into
shares
shares
Total
number of 10,125,525,000 10,125,525,000
shares
34. Capital reserves
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Capital premium (equity
10,779,726,139.51 10,779,726,139.51
premium)
Other capital reserves 42,868,373.88 2,727,745.97 45,596,119.85
Total 10,822,594,513.39 2,727,745.97 10,825,322,259.36
Other notes, including notes to increase and decrease in the current period and its reasons:
1) Due to changes in equity of associates other than net profit or loss, other comprehensive income and profit
216 / 269
Full Text of 2023 Annual Report
distribution, capital reserve (other capital reserve) was increased by 2,025,562.21 yuan based on the Company’s
holding proportion.
2) Due to the disposal of certain equity of Rongsheng New Materials (Taizhou) Co., Ltd., capital reserve
(other capital reserve) was increased by 702,183.76 yuan at the difference between the consideration of
28,325,460.00 yuan and the share in net assets of the subsidiary of 27,623,276.24 yuan based on disposed
proportion.
35. Treasury stock
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Repurchase of public
3,978,202,364.65 2,641,604,811.37 6,619,807,176.02
shares
Total 3,978,202,364.65 2,641,604,811.37 6,619,807,176.02
Other notes, including notes to increase and decrease in the current period and its reasons:
Pursuant to the “Proposal on Repurchasing the Company’s Shares” deliberated and approved by the 21st
meeting of the fifth session of the Board of Directors dated March 15, 2022, the Company was agreed to
repurchase part of its public shares using self-owned funds through centralized bidding transactions for the
purpose of conversion of the Company’s convertible corporate bonds into shares. The total amount of repurchase
funds was not less than 1 billion yuan (inclusive) and did not exceed 2 billion yuan (inclusive), and the repurchase
price did not exceed 22 yuan per share.
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.
Pursuant to the “Proposal on Repurchasing the Company’s Shares” deliberated and approved by the tenth
meeting of the sixth session of the Board of Directors dated August 21, 2023 and “Proposal on Increasing the
Funds for the Company’s Share Repurchase (Phase III)” deliberated and approved by the 14th meeting of the
sixth session of the Board of Directors dated November 27, 2023, the Company was agreed to repurchase part of
the RMB ordinary shares (A shares) issued by the Company domestically using self-owned funds through
centralized bidding transactions for the purpose of conversion of the Company’s convertible corporate bonds into
shares or employee stock ownership plan. The total amount of repurchase funds was not less than 1.5 billion yuan
(inclusive) and did not exceed 3 billion yuan (inclusive), and the repurchase price did not exceed 18 yuan
(inclusive) per share.
The Company has repurchased 283,142,652 shares at the beginning of the period. In the current period, the
Company repurchased 233,290,470 shares by special securities account for repurchase through centralized
bidding transactions, with the highest transaction price of 12.70 yuan per share, the lowest transaction price of
9.94 yuan per share and the total transaction amount of 2,642,310,498.59 yuan (excluding transaction fees). In the
meantime, the Company received a cash settlement income of 705,687.22 yuan from over-the-counter derivatives-
related agreements signed with CITIC Securities Co., Ltd. and Shenwan Hongyuan Securities Co., Ltd., which
217 / 269
Full Text of 2023 Annual Report
reduced the Company’s actual repurchase cost in the current period by 705,687.22 yuan.
36. Other comprehensive income
Unit: RMB
Current period cumulative
Less: Amount
Less: amount
included in Attribu
included in
other Attribut table to
Amount other
Openin comprehensiv able to the
incurre comprehensi Less: Closing
Item g e incomes the minorit
d before ve income income balance
balance previously parent y
current previously tax
and then compan shareho
income and then expenses
transferred y after lders
tax transferred
into current tax after
into current
retained tax
gain and loss
earnings
I. Other
comprehensive
590,642. 590,642. 590,642.
income which may
24 24 24
not be reclassified to
gain and loss
590,642. 590,642. 590,642.
Others
24 24 24
II. Other
comprehensive - -
139,462, 14,068, 109,613,
income which may be 15,780,5 29,849,3
613.71 855.22 224.11
reclassified to gain 34.38 89.60
and loss
Including: other
comprehensive -
71,764,5 32,807,5 34,005,7 105,770,
income convertible 1,198,1
62.47 98.27 23.54 286.01
into profit or loss by 25.27
the equity method
Translation
- -
difference of 67,698,0 15,266, 3,842,93
48,588,1 63,855,1
financial statements 51.24 980.49 8.10
32.65 13.14
in foreign currency
Total other - -
139,462, 14,068, 110,203,
comprehensive 15,189,8 29,258,7
613.71 855.22 866.35
income 92.14 47.36
37. Special reserve
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Safety production
367,322,639.12 306,645,342.21 60,677,296.91
expenses
Total 367,322,639.12 306,645,342.21 60,677,296.91
Other notes, including notes to increase and decrease in the current period and its reasons:
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.,
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Ltd.
38. Surplus reserve
Unit: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Statutory surplus
886,470,394.72 87,681,249.96 974,151,644.68
reserve
Total 886,470,394.72 87,681,249.96 974,151,644.68
39. Undistributed profits
Unit: RMB
Item Current period Prior period
Undistributed profits at the end of the prior period before the
29,264,532,743.94 27,605,458,498.55
adjustment
Total amount of undistributed profit at the beginning of adjustment
1,177,803.84 626,838.23
(“+” for increase, “-” for decrease)
Undistributed profit at the beginning of the period after adjustment 29,265,710,547.78 27,606,085,336.78
Add: Net profit attributable to the owner of the parent company in
1,158,146,248.89 3,340,713,394.56
the current period
Less: Withdrawal of statutory surplus reserve 87,681,249.96 173,774,728.61
Common stock dividends payable 1,476,357,352.20 1,507,313,454.95
Undistributed profits at the end of the period 28,859,818,194.51 29,265,710,547.78
Details of adjustment of beginning undistributed profits:
As a result of the change in accounting policy, the undistributed profits affected at the beginning of the period was
RMB1,177,803.84.
40. Operating income and operating costs
Unit: RMB
Current period cumulative Preceding period comparative
Item
Revenue Cost Revenue Cost
Primary business 324,161,501,353.80 286,937,146,140.13 287,950,149,983.36 256,926,391,305.48
Other Businesses 950,112,914.29 821,739,557.17 1,144,691,629.40 914,763,275.79
Total 325,111,614,268.09 287,758,885,697.30 289,094,841,612.76 257,841,154,581.27
Whether the lower of the net profits before and after net of non-recurring gains/losses is negative through audit
□Yes No
Other notes
Breakdown information of income
(1) Breakdown of revenue from contracts with customers by goods or services
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Oil refining 121,884,564,630.35 97,185,773,925.13 103,841,990,910.56 84,981,949,000.87
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Chemical 121,776,659,403.66 109,402,218,957.65 113,898,786,080.29 102,078,088,582.19
PTA 53,189,803,246.86 53,529,769,810.68 50,496,010,557.67 50,949,332,208.40
Polyester chemical fiber film 14,717,875,220.67 14,245,686,777.56 14,641,039,125.46 14,168,474,148.53
Trade and others 13,540,394,215.39 13,394,398,783.78 6,214,327,624.61 5,661,953,153.31
Subtotal 325,109,296,716.93 287,757,848,254.80 289,092,154,298.59 257,839,797,093.30
(2) Breakdown of revenue from contracts with customers by time of transferring goods or rendering services
Amount in the current Amount in the previous
Item
period period
Revenue recognized at a certain point of time 325,109,296,716.93 289,092,154,298.59
Subtotal 325,109,296,716.93 289,092,154,298.59
(3) The revenue recognized in the current period included in the opening book value of contract liabilities is
RMB 3,689,553,428.65.
(4) Revenue from and cost of trial sales presented as operating revenue and operating cost
1) Revenue from and cost of trial sales
Amount in the previous
Item Amount in the current period
period
Revenue from trial sales 12,346,750,810.64 34,916,101,427.73
Cost of trial sales 12,028,406,955.08 29,676,585,780.01
2) Significant accounting estimates used in determining the cost associated with trial sales
The cost of inventories from trial production before the Company’s fixed assets reach the designed usable
condition is recognized based on the necessary and reasonable expenditures under normal design and production
capacity, combined with factors such as the normal design production capacity, the normal production input-
output ratio of the product, etc. after the fixed assets reach the designed usable condition.
41. Taxes and surcharges
Unit: RMB
Item Current period cumulative Preceding period comparative
Excise (consumption) tax 20,158,116,786.69 14,971,021,522.33
Urban maintenance and construction tax 1,413,261,170.65 1,045,144,550.70
Education surcharge 609,449,176.14 448,133,892.95
Property tax 35,451,787.21 35,981,636.59
Land use tax 145,847,592.94 115,394,536.99
Vehicle and vessel tax 92,010.68 101,671.92
Stamp duty 167,370,574.64 87,909,307.61
Environmental protection tax 11,767,763.80 8,395,902.69
Local education surcharge 406,300,720.73 298,755,958.60
Total 22,947,657,583.48 17,010,838,980.38
42. Administrative expenses
Unit: RMB
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Item Current period cumulative Preceding period comparative
Employee remuneration 404,325,067.28 381,467,230.32
Office expenses 132,123,305.00 163,305,799.64
Depreciation and amortization expenses 170,018,094.68 141,020,604.94
Insurance premium 156,362,133.49 75,902,949.27
Business entertainment expenses 20,556,059.77 15,273,187.46
Others 25613358.00 38,263,837.47
Total 908,998,018.22 815,233,609.10
43. Selling expenses
Unit: RMB
Item Current period cumulative Preceding period comparative
Employee remuneration 114,405,591.84 110,041,776.76
Sales business expenses 33,264,718.69 39,978,053.01
Others 12791937.40 25,430,798.39
Total 160,462,247.93 175,450,628.16
44. R&D expenses
Unit: RMB
Item Current period cumulative Preceding period comparative
Direct input 5,002,777,534.42 3,695,900,511.90
Depreciation and amortization 977,831,515.04 323,443,663.63
Employee remuneration 553,305,248.93 323,237,921.80
Equipment commissioning fee 7,048,769.45 110,610.62
Outsourcing R&D and others 14,319,284.66 24,419,779.02
Total 6,555,282,352.50 4,367,112,486.97
45. Financial expenses
Unit: RMB
Item Current period cumulative Preceding period comparative
Interest expense 7,352,267,160.76 4,577,830,003.95
Interest income -462,192,239.25 -351,751,026.01
Net exchange losses/gains 988,178,999.07 1,515,404,259.76
Others 323,873,805.56 289,026,311.05
Total 8,202,127,726.14 6,030,509,548.75
46. Other income
Unit: RMB
Source of other income Current period cumulative Preceding period comparative
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Government grants related to assets 30,422,294.00 31,347,901.84
Government grants related to income 798,372,989.39 2,328,129,612.92
Return of fees for withheld individual
5,085,360.29 2,748,797.01
income tax
Value-added tax with deduction 1,751,845,788.50
Others 3,514,912.00 1,026,607.00
Total 2,589,241,344.18 2,363,252,918.77
47. Gain from change in fair value
Unit: RMB
Source of income from changes in fair value Current period cumulative Preceding period comparative
Trading financial assets 292,781,787.20 188,283,362.49
Where: income from changes in fair value generated
292,781,787.20 188,283,362.49
by derivative financial instruments
Trading financial liabilities -136,895,519.26 -177,555,295.59
Total 155,886,267.94 10,728,066.90
48. Investment income
Unit: RMB
Item Current period cumulative Preceding period comparative
Long-term equity investment income
275,964,998.21 644,363,579.51
calculated by equity method
Investment income from disposal of long-
30,580,952.97 10,425,856.86
term equity investments
Investment income from disposal of
327,969,992.65 281,620,572.84
trading financial assets
Financing discount loss of receivables -174,729,555.22 -243,137,052.04
Interest income from related party lending 248,144.66 205,188.67
Total 460,034,533.27 693,478,145.84
49. Credit impairment loss
Unit: RMB
Item Current period cumulative Preceding period comparative
Bad debt losses -105,271,556.51 -15,203,657.84
Total -105,271,556.51 -15,203,657.84
50. Asset impairment loss
Unit: RMB
Item Current period cumulative Preceding period comparative
Inventory falling price loss -121,513,148.98 -282,256,547.80
Total -121,513,148.98 -282,256,547.80
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51. Income from asset disposal
Unit: RMB
Sources of asset disposal income Current period cumulative Preceding period comparative
Income from disposal of fixed assets 3,706,231.92 3,885,078.23
52. Non-operating income
Unit: RMB
Amount included in non-
Preceding period
Item Current period cumulative recurring gain and loss of
comparative
the current period
Income of indemnity 223,772.36 3,271,502.16 223,772.36
Income from fines and
2,533,090.04 1,041,311.20 2,533,090.04
penalties
Others 199409.30 431,757.01 196,467.55
Total 2,956,271.70 4,744,570.37 2,953,329.95
53. Non-operating expenses
Unit: RMB
Current period Preceding period Amount included in non-recurring
Item
cumulative comparative gain and loss of the current period
External donations 10,000,000.00 11,000,000.00 10,000,000.00
Amount included in non-recurring
156,295.40 102,819.31 156,295.40
gain and loss of the current period
Late fee 403,869.72 2,832,803.08 403,869.72
Others 101,964.64 165,503.94 101,964.64
Total 10,662,129.76 14,101,126.33 10,662,129.76
54. Income tax expenses
(1) Presentation of income tax expenses
Unit: RMB
Item Current period cumulative Preceding period comparative
Income tax expenses in the current period 597,000,358.58 697,479,472.15
Deferred income tax expenses -647,584,367.94 -1,448,733,263.89
Total -50,584,009.36 -751,253,791.74
(2) Adjustment of accounting profit and income tax expense
Unit: RMB
Item Current period cumulative
Total profits 1,552,578,456.28
Income tax expenses at statutory/applicable rates 388,144,614.08
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Impact of different tax rates applied to subsidiaries -268,306,181.60
Impact of income tax during periods prior to adjustment 326,589,246.89
Impact of non-taxable income -276,675,158.02
Impact of non-deductible costs, expenses and losses 123,405,546.72
Impact of using deductible loss on deferred income tax assets
-61,386,376.13
unrecognized in prior periods
Impact of temporary deductible difference or deductible loss on
288,998,592.88
deferred income tax assets unrecognized in the current period
Tax credit for the investment amount of enterprise in
-7,163,213.54
purchasing special equipment for environmental protection
Impact of R&D cost plus deduction -552,496,534.19
Extra deductions of wages for the disabled -11,694,546.45
Income tax expenses -50,584,009.36
55. Other comprehensive income
For details, please refer to Note V (I) 36 of the attached table.
56. Cash flow statement items
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: RMB
Item Current period cumulative Preceding period comparative
Recovery of bills, letters of credit and other deposits 2,227,779,041.99 2,866,495,137.32
Temporary loan received from Zhejiang Rongsheng
1,700,000,000.00 200,000,000.00
Holding Group Co., Ltd.
Interest income received from bank deposits 462,192,239.25 351,751,026.01
Recovery of operating deposit and security deposit 358,954,526.64 437,519,028.13
Government subsidies received 882,037,187.49 85,667,751.41
Others 20,817,409.42 72,326,626.03
Total 5,651,780,404.79 4,013,759,568.90
Other cash paid related to operating activities
Unit: RMB
Item Current period cumulative Preceding period comparative
Payment for deposits for notes and letters of credit 1,274,961,321.30 2,227,779,041.99
Repayment of temporary borrowings from Zhejiang
1,700,000,000.00 200,000,000.00
Rongsheng Holding Group Co., Ltd.
Out-of-pocket expenses of administrative expenses,
421,455,195.91 491,786,793.13
R&D expenses and selling expenses
Borrowing and interest paid on behalf of Zhoushan
Yushan Petrochemical Engineering Co., Ltd.
Payment of bank charges 302,962,268.04 270,342,872.02
Payment of operating deposit and security deposit 241,779,503.01 321,584,656.12
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Others 79759938.71 22,257,019.72
Total 4,020,918,226.97 3,533,750,382.98
(2) Cash related to investment activities
Other cash receipts related to investing activities
Unit: RMB
Item Current period cumulative Preceding period comparative
Withdrawal of deposits for notes and letters of credit 300,801,878.44 171,820,956.95
Receipts of project and land bidding deposits 170,796,112.11 241,165,333.31
Withdrawal of temporary borrowings and interests from
248,144.64 205,188.67
ZPC ENN (Zhoushan) Gas Co., Ltd.
Total 471,846,135.19 413,191,478.93
Other cash payments related to investing activities
Unit: RMB
Item Current period cumulative Preceding period comparative
Payment for project and land bidding deposits 152,021,068.01 185,974,340.70
Payment for deposits for notes and letters of credit 58,439,047.20 300,801,878.44
Payment for temporary borrowings to ZPC ENN
6,000,000.00
(Zhoushan) Gas Co., Ltd.
Total 216,460,115.21 486,776,219.14
(3) Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB
Item Current period cumulative Preceding period comparative
Receipts of temporary borrowings from Zhejiang
19,821,000,000.00 6,290,000,000.00
Rongsheng Holding Group Co., Ltd.
Receipts of entrusted loans from Zhejiang Yisheng
786,000,000.00 988,000,000.00
Petrochemical Co., Ltd.
Withdrawal of deposits for borrowings 250,000,000.00 360,000,000.00
Sales of corporate bonds 494,566,600.00
Received equity transfer payment from Rongsheng
28,325,460.00
New Materials (Taizhou) Co., Ltd.
Receipts from discounted but undue letters of credit
6,567,014,988.16
and notes
Total 20,885,325,460.00 14,699,581,588.16
Other cash payments related to financing activities
Unit: RMB
Item Current period cumulative Preceding period comparative
Repayment of temporary loan to Zhejiang
6,927,759,989.43 4,840,158,257.44
Rongsheng Holding Group Co., Ltd.
Repayment of entrusted loan and interest to Zhejiang 1,028,982,195.75 1,129,574,324.99
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Yisheng Petrochemical Co., Ltd.
Payment of financing fees 20,911,537.53 18,683,439.05
Expenditure for right-to-use assets 31,518,302.23 32,433,187.97
Payment of loan security 250,000,000.00 265,545,440.00
Stock repurchase 2,642,310,498.59 3,978,202,364.65
Paid option deposit of Shenwan Hongyuan Securities
5,000,000.00
Co., Ltd.
Redemption of corporate bonds 494,566,600.00
Payment for discounted letters of credit upon
20,297,165,632.32
maturity
Total 31,203,648,155.85 10,759,163,614.10
Changes in all liabilities arising from financing activities
□Applicable Not applicable
57. Supplementary information of Cash Flow Statement
(1) Supplementary information of Cash Flow Statement
Unit: RMB
Supplementary information Closing balance Opening balance
1. Converting net profit into cash flow from operating activities
Net profit 1,603,162,465.64 6,370,323,018.01
Add: Provision for impairment of assets 226,784,705.49 297,460,205.64
Fixed assets depreciation, oil and gas assets depletion,
14,535,540,221.77 11,157,350,758.13
productive biological assets depreciation
Depreciation of right-of-use assets 25,504,627.18 27,471,659.67
Amortization of intangible assets 160,144,938.95 114,444,041.96
Amortization of long-term deferred expenses 71,458.00 67,861.04
Loss on disposing fixed assets, intangible assets and
-3,706,231.92 -3,885,078.23
other long-term assets (gains expressed with “-”)
Losses on disposal of fixed assets (gains expressed with
156,295.40 102,819.31
“-”)
Loss from changes in fair value (gains expressed with “-
-155,886,267.94 -10,728,066.90
”)
Financial expenses (gains expressed with “-”) 8,367,284,097.36 6,111,917,702.75
Loss from investment (gains expressed with “-”) -460,034,533.27 -936,615,197.88
Reduction of deferred income tax assets (increase
-310,687,195.79 -139,026,723.73
expressed with “-”)
Increase of deferred income tax liabilities (decrease
-336,897,172.15 -1,309,706,540.17
expressed with “-”)
Decrease in inventories (increase expressed with “-”) -1,165,260,697.11 -13,935,026,846.57
Decrease of operating receivables (increase expressed
695,137,952.67 7,977,342,745.44
with “-”)
Increase in operating payables (decrease expressed with
4,721,365,821.01 3,336,644,526.88
“-”)
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Others 176,541,023.44
Net cash flow from operating activities 28,079,221,508.73 19,058,136,885.36
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:
Closing balance of cash 11,486,855,097.52 15,459,279,803.77
Less: Opening balance of cash 15,459,279,803.77 14,338,837,644.67
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -3,972,424,706.25 1,120,442,159.10
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 11,486,855,097.52 15,459,279,803.77
Including: cash on hand 1,499,665.59 947,398.91
Bank deposits available for payment at any time 11,121,148,364.87 14,971,568,361.00
Other monetary funds available for payment at any time 364,207,067.06 486,764,043.86
II. Closing balance of cash and cash equivalents 11,486,855,097.52 15,459,279,803.77
(3) Monetary funds that are not cash and cash equivalents
Unit: RMB
Reasons for not considered as
Item Closing balance Opening balance
cash and cash equivalents
Deposits for bank acceptance 771,727,014.41 965,307,469.62 Security deposit
L/C deposit 561,350,011.26 980,285,341.35 Security deposit
Deposits for loans 250,000,000.00 250,000,000.00 Security deposit
Deposits for letters of
552,377,191.00 Security deposit
guarantee
Deposits for leased-in silver 26,758,215.21 Security deposit
Accrued interest of deposits 322,342.83 4,766,359.26 Accrual of deposit interest
ETC deposits 1,000.00
Total 1,583,400,368.50 2,779,494,576.44
(4) Changes in liabilities related to financing activities
Unit：RMB 10,000
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Amount at the Increase in the current period Decrease in the current period Amount at
Item beginning of Changes in Changes in Changes in Changes in the end of
the period cash non-cash cash non-cash the period
Bank borrowings 17,777,103.67 13,840,969.31 824,311.66 12,533,914.26 86,512.00 19,821,958.38
Other payables –
temporary borrowings
from Zhejiang 153,951.34 1,982,100.00 18,301.02 692,776.00 1,461,576.36
Rongsheng Holding
Group Co., Ltd.
Other payables –
entrusted loans from
Zhejiang Yisheng 98,943.39 78,600.00 4,069.75 102,898.22 78,714.92
Petrochemical Co.,
Ltd.
Other payables –
147,635.74 147,635.74
dividend payable
Bonds payable
(including bonds
203,482.71 7,535.49 7,310.00 203,708.20
payable due within one
year)
Lease liabilities
(including lease
23,569.08 936.87 3,151.83 21,354.12
liabilities due within
one year)
Subtotal 18,257,050.19 15,901,669.31 1,002,790.53 13,487,686.05 86,512.00 21,587,311.98
(5) Description of other major activities
Endorsement and transfer amount of commercial drafts that do not involve cash receipts and payments
Amount in the current Amount in the
Item
period previous period
Amount of commercial bill transferred by endorsement 3,524,694,837.25 2,384,544,577.78
Including: payment for goods 3,454,580,186.05 2,255,269,688.24
Payment for the purchase of fixed assets and other long-term
70,114,651.20 129,274,889.54
assets
58. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
Unit: RMB
Closing balance in foreign
Item Translation rate Closing balance in RMB
currencies
Monetary fund
Including: USD 470,818,718.98 7.0827 3,334,667,740.92
EUR 4,661,333.75 7.8592 36,634,354.21
HKD 361,531.29 0.9062 327,619.65
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GBP 2.70 9.0411 24.41
Singapore dollar 2,348,572.33 4.4991 10,566,461.77
Accounts receivable
Including: USD 401,124,350.66 7.0827 2,841,043,438.42
EUR
HKD
Other receivables
Including: USD 25,035,187.30 7.0827 177,316,721.09
Singapore dollar 40,614.65 4.4991 182,729.37
HKD 12,487,496.00 0.9062 11,316,168.88
Other payables
Including: USD 36,819,448.31 7.0827 260,781,106.55
Singapore dollar 102,775.68 4.4991 462,398.06
Accounts payable
Including: USD 4,439,770,489.91 7.0827 31,445,562,448.89
EUR 21,638,010.33 7.8592 170,057,450.79
Long-term loan
Including: USD
EUR 54,393,495.89 7.8592 427,489,362.90
HKD
Non-current liabilities due
within one year
Including: USD 1,030,962.05 7.0827 7,301,994.91
EUR 6,399,234.82 7.8592 50,292,866.30
(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.
Applicable □Not applicable
Place of Recording
Company name Selection basis
registration currency
Hong Kong Sheng Hui Co., Ltd. Hong Kong, China
Hong Kong Yisheng Dahua Petrochemical Co.,
Hong Kong, China
Ltd.
Yisheng New Materials Trading Co., Ltd. Hong Kong, China
General settlement currency
Rongsheng Petrochemical (Hong Kong) Co., Ltd. Hong Kong, China USD
for company operation
Rongsheng Petrochemical (Singapore) Pte. Ltd. Singapore
Zhejiang Petroleum & Chemical (Singapore) Pte.
Singapore
Ltd.
Rongtong Logistics (Singapore) Pte. Ltd. Singapore
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59. Lease
(1) The Company acts as the Lessee:
Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable Not applicable
Lease costs for short-term leases or low-value assets with simplified treatment
Applicable □Not applicable
Please refer to section III (XXIX) of notes to the financial statements for details on the Company’s
accounting policies on short-term leases and leases for which the underlying asset is of low value. The amounts
of short-term leases and low-value asset leases included into profit or loss are as follows:
Amount in the current Amount in the
Item
period previous period
Expense relating to short-term leases 20,554,034.54 9,678,895.61
Expense relating to leases of low-value assets (excluding short-term
leases)
Total 20,554,034.54 9,678,895.61
(2) The Company acts as lessor
Operating lease as lessor
Applicable □Not applicable
Unit: RMB
Including: Income relating to variable lease payments
Item Lease income
not included in the measurement of the lease liabilities
Lease income 2,317,551.16 2,317,551.16
Total 2,317,551.16 2,317,551.16
Financial lease as lessor
□Applicable Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable Not applicable
Reconciliation between undiscounted lease receipts and net lease investment
(3) Recognition of the profit and loss of financial leasing sales as a manufacturer or distributor
□Applicable Not applicable
VIII. R&D expenditure
Unit: RMB
Item Current period cumulative Preceding period comparative
Direct input 5,002,777,534.42 3,695,900,511.90
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Depreciation and amortization 977,831,515.04 323,443,663.63
Employee remuneration 553,305,248.93 323,237,921.80
Equipment commissioning fee 7,048,769.45 110,610.62
Outsourcing R&D and others 14,319,284.66 24,419,779.02
Total 6,555,282,352.50 4,367,112,486.97
Including: expensed R&D expenditure 6,555,282,352.50 4,367,112,486.97
IX. Changes in Combination Scope
(1) Disposal of subsidiaries
Whether there were any transactions or matters during the period in which control of subsidiaries is lost
Yes □No
Unit: RMB
Differe Change
nce s in
between Determi other
disposal nation compre
conside method hensive
Carryin
ration Gains/L and income/
Proport g Fair
and net osses on major equity
Determi ion of amount value of
assets fair assump related
nation remaini of remaini
Equity Equity attribut value tion on to
Equity Loss-of- basis ng remaini ng
Subsidi disposal disposal able to remeas fair former
disposal control for loss- equity ng equity
aries conside proport the uremen value of subsidi
method date of- at the equity at the
ration ion (%) Compa t of remaini ary’s
control loss-of- at the loss-of-
ny at remaini ng equity
date control loss-of- control
the ng equity investm
date control date
consoli equity at the ent
date
dated loss-of- transfer
financia control red to
l date investm
stateme ent
nts level income
Zhous Registr
han ation
Yusha of
n change
Petroc 18,792 June s at 30,570
100.00 Transf
hemica ,928.9 29, admini ,829.3
% er
l 0 2023 stratio 1
Engine n for
ering market
Co., regulat
Ltd. ion
Whether there is a step-by-step disposal of investments in subsidiaries through multiple transactions and loss of
control during the period
□Yes No
2. Changes in combination scope due to other reasons
Increase in combination scope
Equity Subscribed
Subscribed capital
Company name acquisition Equity acquisition date holding
contribution
method proportion (%)
Zhoushan ZPC Sales Co., Ltd. Newly May 25, 2023 10,000,000.00 100.00
231 / 269
Full Text of 2023 Annual Report
established
Newly
Ningbo ZPC Sales Co., Ltd. December 29, 2023 10,000,000.00 100.00
established
Zhejiang ZPC Power Newly
May 23, 2023 100,000,000.00 100.00
Generation Co., Ltd. established
Rongsheng Energy (Zhoushan) Newly
November 27, 2023 100,000,000.00 100.00
Co., Ltd. established
Zhejiang Rongshen New Newly
June 13, 2023 20,000,000.00 100.00
Materials Co., Ltd. established
Zhejiang Shengcheng New Newly
June 13, 2023 20,000,000.00 100.00
Materials Co., Ltd. established
Zhejiang Huiyu New Materials Newly
June 13, 2023 20,000,000.00 100.00
Co., Ltd. established
3. The share of owners' equity in the subsidiary changes but still controls the transactions of subsidiaries
1) Description of changes in the share of owners' equity in subsidiaries
Holding proportion Holding proportion
Name of subsidiary Date of change
before change after change
Rongsheng New Material
December 29, 2023 100% 90%
(Taizhou) Co., Ltd.
2) Influence of transaction on minority shareholders' equity and owners' equity attributable to parent company
Item Rongsheng New Material (Taizhou) Co., Ltd.
Disposal considerations
Cash 28,325,460.00
Total disposal considerations 28,325,460.00
Less: Share in subsidiaries’ net assets based on disposed
27,623,276.24
net assets proportion
Difference 702,183.76
Including: Adjustment of capital reserve 702,183.76
X. Equities in Other Entities
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1. Equities in subsidiaries
(1) Group composition
Unit：RMB 10,000
Principal place Place of Shareholding ratio Acquisition
Name of subsidiary Registered capital Business nature
of business registration Direct Indirect method
Xiaoshan, Xiaoshan,
Zhejiang Shengyuan Chemical Fiber Co., Ltd. 200,000.00 Manufacturing 100.00% Set up
Zhejiang Zhejiang
Business
Hong Kong, Hong Kong, combinations
Hong Kong Sheng Hui Co., Ltd. USD 1,970.00 Commercial 100.00%
China China under the same
control
Ningbo, Ningbo,
Ningbo Yisheng Chemical Co., Ltd. USD 10,526.00 Manufacturing 95.00% Set up
Zhejiang Zhejiang
Dalian Yisheng Investment Co., Ltd. 201,800.00 Dalian, Liaoning Dalian, Liaoning Manufacturing 70.00% Set up
Yisheng Dahua Petrochemical Co., Ltd. 245,645.00 Dalian, Liaoning Dalian, Liaoning Manufacturing 84.60% Set up
Hong Kong Yisheng Dahua Petrochemical Co., Hong Kong, Hong Kong,
USD 10.00 Commercial 100.00% Set up
Ltd. China China
Dalian Rongxincheng Trading Co., Ltd. 1,000.00 Dalian, Liaoning Dalian, Liaoning Commercial 100.00% Set up
Zhejiang Rongtong Chemical Fiber New Xiaoshan, Xiaoshan,
5,000.00 Commercial 100.00% Set up
Material Co., Ltd. Zhejiang Zhejiang
Dalian Yisheng New Materials Co., Ltd. 2,000.00 Dalian, Liaoning Dalian, Liaoning Manufacturing 100.00% Set up
Business
Ningbo, Ningbo, combinations
Ningbo Zhongjin Petrochemical Co., Ltd. 600,000.00 Manufacturing 100.00%
Zhejiang Zhejiang under the same
control
Ningbo, Ningbo,
Ningbo Niluoshan New Energy Co., Ltd. 36,000.00 Manufacturing 100.00% Set up
Zhejiang Zhejiang
Business
Ningbo, Ningbo, combinations
Zhejiang Yisheng New Materials Co., Ltd. 300,000.00 Manufacturing 51.00%
Zhejiang Zhejiang not under the
same control
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Ningbo, Ningbo,
Ningbo Rongxincheng Trading Co., Ltd. 1,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Hong Kong, Hong Kong,
Yisheng New Materials Trading Co., Ltd. HKD 100.00 Commercial 100.00% Set up
China China
Ningbo, Ningbo,
Zhejiang Rongyi Trading Co., Ltd. 1,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Rongsheng Petrochemical (Singapore) Pte. Ltd. USD 10,100.00 Singapore Singapore Commercial 100.00% Set up
Rongtong Logistics (Singapore) Pte.
USD 0.0001 Singapore Singapore Commercial 100.00% Set up
Ltd.
Rongsheng Petrochemical (Hong Kong) Co.,
USD 10.00 Hong Kong Hong Kong Commercial 100.00% Set up
Ltd.
Xiaoshan, Xiaoshan,
Rongsheng International Trading Co., Ltd. 10,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Business
Zhoushan, Zhoushan, combinations
Zhejiang Petroleum & Chemical Co., Ltd. 5,580,000.00 Manufacturing 51.00%
Zhejiang Zhejiang under the same
control
Zhoushan, Zhoushan,
ZPC Zheyou Technology Co., Ltd. 41,220.00 Manufacturing 70.00% Set up
Zhejiang Zhejiang
Zhejiang Petroleum & Chemical (Singapore) Pte.
USD 10.00 Singapore Singapore Commercial 100.00% Set up
Ltd.
Zhoushan, Zhoushan,
ZPC Jintang Logistics Co., Ltd. 200,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Xiaoshan, Xiaoshan,
Zhejiang ZPC Sales Co., Ltd. 10,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Zhoushan, Zhoushan,
Zhoushan ZPC Sales Co., Ltd. 6,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Zhoushan, Zhoushan,
Zhoushan ZPC Sales Co., Ltd. 6,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Ningbo, Ningbo,
Ningbo ZPC Sales Co., Ltd. 1,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
ZPC (Zhejiang Free Trade Zone) Green Zhoushan, Zhoushan,
10,000.00 Commercial 100.00% Set up
Petrochemical Research Institute Co., Ltd. Zhejiang Zhejiang
Zhejiang ZPC Power Generation Co., Ltd. 10,000.00 Zhoushan, Zhoushan, Manufacturing 100.00% Set up
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Zhejiang Zhejiang
Xiaoshan, Xiaoshan,
Rongxiang Chemical Fiber Co., Ltd. 20,000.00 Manufacturing 100.00% Set up
Zhejiang Zhejiang
Business
Shaoxing, Shaoxing, combinations
Zhejiang Yongsheng Technology Co., Ltd. 16,000.00 Manufacturing 70.00%
Zhejiang Zhejiang under the same
control
Shaoxing, Shaoxing,
Zhejiang Zhuosheng Industry & Trade Co., Ltd. 1,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Rongsheng International Trading (Hainan) Co., Danzhou, Danzhou,
10,000.00 Commercial 100.00% Set up
Ltd. Hainan Hainan
Rongsheng Chemical (Shanghai) Co., Ltd. 100,000.00 Shanghai, China Shanghai, China Commercial 100.00% Set up
Zhoushan, Zhoushan,
Rongsheng (Zhoushan) New Materials Co., Ltd. 100,000.00 Manufacturing 100.00% Set up
Zhejiang Zhejiang
Zhoushan, Zhoushan,
Rongsheng Energy (Zhoushan) Co., Ltd. 10,000.00 Manufacturing 100.00% Set up
Zhejiang Zhejiang
Taizhou, Taizhou,
Rongsheng New Material (Taizhou) Co., Ltd. 100,000.00 Manufacturing 90.00% Set up
Zhejiang Zhejiang
Xiaoshan, Xiaoshan,
Zhejiang Rongshen New Materials Co., Ltd. 2,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Xiaoshan, Xiaoshan,
Zhejiang Shengcheng New Materials Co., Ltd. 2,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
Xiaoshan, Xiaoshan,
Zhejiang Huiyu New Materials Co., Ltd. 2,000.00 Commercial 100.00% Set up
Zhejiang Zhejiang
(2) Major non-wholly owned subsidiaries
Unit: RMB
Shareholding ratio of Gain and loss attributable to minority Dividend announced to be distributed to Closing balance of
Name of subsidiary
minority shareholders shareholders in the current period minority shareholders in the current period minority equity
Dalian Yisheng Investment Co., Ltd. 30.00% 23,229,152.72 2,050,674,805.97
Yisheng Dahua Petrochemical Co., Ltd. 15.40% -19,862,739.89 1,047,861,642.55
Zhejiang Yisheng New Materials Co., Ltd. 49.00% -265,945,057.22 1,127,849,501.83
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Zhejiang Petroleum & Chemical Co., Ltd. 49.00% 721,460,985.96 - 45,993,192,147.53
(3) Main financial information of major non-wholly owned subsidiaries
Unit: RMB
Closing balance Opening balance
Name of subsidiary Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Dalian Yisheng 6,043,382, 10,173,002 16,216,384 7,509,876, 1,006,365, 8,516,242, 7,863,016, 9,670,921, 17,533,937 9,020,135, 877,263,39 9,897,398,
Investment Co., Ltd. 793.70 ,029.51 ,823.21 231.58 995.26 226.84 267.32 048.60 ,315.92 075.15 8.54 473.69
Yisheng Dahua
7,881,162, 6,690,663, 14,571,825 7,507,801, 1,006,365, 8,514,167, 9,702,998, 6,368,833, 16,071,832 9,017,987, 877,263,39 9,895,250,
Petrochemical Co.,
643.98 043.40 ,687.38 187.61 995.26 182.87 995.48 973.65 ,969.13 092.36 8.54 490.90
Ltd.
Zhejiang Yisheng
3,092,416, 8,847,477, 11,939,894 6,977,327, 2,670,572, 9,647,900, 3,175,435, 9,113,541, 12,288,977 7,823,185, 1,605,762, 9,428,948,
New Materials Co.,
626.70 862.13 ,488.83 918.39 649.50 567.89 983.29 928.71 ,912.00 859.65 652.80 512.45
Ltd.
Zhejiang Petroleum 64,568,74 233,498,32 298,067,07 89,967,92 114,638,35 204,606,27 66,428,36 220,440,13 286,868,49 73,204,39 121,717,08 194,921,48
& Chemical Co., Ltd. 7,170.94 4,220.33 1,391.27 4,493.30 3,580.77 8,074.07 0,516.70 7,988.94 8,505.64 2,158.98 9,146.90 1,305.88
Unit: RMB
Current period cumulative Preceding period comparative
Name of subsidiary Total Cash flows from Total Cash flows from
Operating Operating
Net profit comprehensive operating Net profit comprehensive operating
revenue revenue
income activities income activities
Dalian Yisheng
30,081,391,445.25 57,567,769.18 63,603,754.14 1,434,071,122.98 29,747,828,875.56 405,244,408.13 444,753,213.12 888,943,615.77
Investment Co., Ltd.
Yisheng Dahua
Petrochemical Co., 30,081,390,277.11 -128,953,709.57 -118,923,973.72 1,412,368,245.10 29,747,828,875.56 -119,472,040.53 -72,233,318.83 386,340,641.09
Ltd.
Zhejiang Yisheng New
34,389,876,066.56 -567,448,779.11 -568,035,478.61 598,995,712.89 33,708,553,178.23 -251,997,551.76 -252,396,220.69 557,152,030.10
Materials Co., Ltd.
Zhejiang Petroleum &
260,199,581,771.04 1,366,854,753.00 1,390,250,929.22 9,170,067,788.54 230,163,720,208.29 6,052,043,366.76 6,051,889,116.30 22,092,257,895.11
Chemical Co., Ltd.
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2. Equity in joint ventures or associated enterprises
(1) Important joint ventures or associated enterprises
Shareholding ratio Accounting method for
Name of the joint venture or Principal place investments in joint
Place of registration Business nature
associated enterprise of business Direct Indirect ventures or associated
enterprises
Zhejiang Yisheng Petrochemical Ningbo, Accounting by the equity
Ningbo, Zhejiang Manufacturing 16.07% 13.93%
Co., Ltd. Zhejiang method
Hainan Yisheng Petrochemical Accounting by the equity
Yangpu, Hainan Yangpu, Hainan Manufacturing 0.00% 50.00%
Co., Ltd. method
Zhejiang Xiaoshan Rural Xiaoshan, Accounting by the equity
Xiaoshan, Zhejiang Finance 9.71% 0.00%
Commercial Bank Co., Ltd. Zhejiang method
Basis for holding less than 20% of the voting rights but having significant influence, or holding 20% or more of the voting rights but not having significant influence:
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
Closing balance/Current period cumulative Opening balance/Preceding period comparative
Zhejiang Xiaoshan Zhejiang Xiaoshan
Zhejiang Yisheng Hainan Yisheng Zhejiang Yisheng Hainan Yisheng
Rural Commercial Rural Commercial
Petrochemical Petrochemical Petrochemical Petrochemical
Bank Co., Ltd. Bank Co., Ltd.
Current assets 16,498,637,547.38 6,162,955,958.24 238,736,568,512.17 15,176,421,030.33 5,152,846,491.05 204,793,958,004.31
Non-current assets 3,137,691,308.20 10,723,396,187.42 113,548,089,574.71 3,593,134,697.01 7,192,824,373.67 78,315,867,412.72
Total assets 19,636,328,855.58 16,886,352,145.66 352,284,658,086.88 18,769,555,727.34 12,345,670,864.72 283,109,825,417.03
Current liabilities 9,220,485,531.00 5,777,465,785.67 306,542,331,514.47 9,101,100,209.73 4,166,702,054.87 254,929,737,080.22
Non-current liabilities 1,436,900,038.76 4,326,522,448.83 22,201,300,436.51 733,508,577.50 1,752,991,337.36 7,337,120,231.30
Total liabilities 10657385569.76 10,103,988,234.50 328,743,631,950.98 9,834,608,787.23 5,919,693,392.23 262,266,857,311.52
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Minority equity 284,964,915.83 273,191,261.65
Shareholders’ equity attributable to
8,978,943,285.82 6,782,363,911.16 23,256,061,220.07 8,934,946,940.11 6,425,977,472.49 20,569,776,843.86
the parent company
Share of net assets calculated by the
2,693,682,985.75 3,391,181,955.58 2,258,628,665.69 2,680,484,082.03 3,212,988,736.25 1,997,736,727.08
shareholding ratio
Adjustments
--Goodwill 102,420,730.97 4,040,414.35 102,420,700.00 4,040,400.00
--Unrealized profits from internal
-10,465,016.83 -12,523,708.66
transactions
--Others 11,273,596.90 2,929,588.71 11,273,596.91 30.97 4,302,713.07
Book value of equity investment in
2,704,956,582.65 3,483,137,669.72 2,265,598,668.75 2,691,757,678.94 3,302,885,758.56 2,006,079,840.15
associated enterprise
Fair value of equity investment in
associated enterprise with the public
offer
Operating revenue 22,591,382,924.36 17,995,790,974.30 7,015,368,301.09 21,386,152,052.27 22,716,982,913.38 6,359,496,651.71
Net profit 27,812,596.46 364,367,774.59 2,789,441,227.26 -171,937,538.81 1,040,012,894.66 2,475,781,182.70
Net profit from termination of
operation
Other comprehensive income 16183749.25 -7,987,501.78 339,244,113.18 -24,444,114.36 68,595,637.98 -603,830,133.66
Total comprehensive income 43,996,345.71 356,380,272.81 3,128,685,340.44 -196,381,653.17 1,108,608,532.64 1,871,951,049.04
Dividends received from associated
39,685,918.80 39,685,918.80
enterprises in the current year
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(3) Summary of the financial information of minor joint ventures and associated enterprises
Unit: RMB
Closing balance/Current period Opening balance/Preceding period
cumulative comparative
Joint ventures：
Total of the following items calculated as
per the respective shareholding
proportion
Associated enterprise:
Total book value of investments 730,018,523.84 732,606,528.70
Total of the following items calculated as
per the respective shareholding
proportion
--Net profit -182,684,759.52 -97,101,935.54
--Other comprehensive income -1,198,206.27 10,135,095.24
--Total comprehensive income -183,882,965.79 -86,966,840.30
XI. Government Grants
1. At the end of the reporting period, government grants recognized according to the amount receivable
Applicable □Not applicable
Items Closing book balance
Government grants receivable – within one
744,000,000.00
year [Note]
Government grants receivable – 1-2 years 1,545,798,000.00
Subtotal 2,289,798,000.00
Note: As of the date of approval for issuing the financial statements, the Company has received subsidies of
744,000,000.00 yuan.
2. Reasons for not receiving the estimated amount of government subsidies at the expected time
Applicable □Not applicable
As of the date of approval for issuing the financial statements, the Company has received subsidies of
500,000,000.00 yuan, with remaining 1,045,798,000.00 yuan to be paid subject to fiscal arrangements.
3. Liability items involving government subsidies
Applicable □Not applicable
Unit: RMB
Amount
Amount of Amount carried
Other
additional included in forward to Related to
Accounting Opening change in Closing
subsidy in current non- other assets/incom
subject balance current balance
current operating income in e
period
period income current
period
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Deferred 195,662,553. 46,150,000. 30,422,294.0 15,808,666.4 195,581,593. Related to
0
income 73 00 0 8 25 assets
195,662,553. 46,150,000. 30,422,294.0 15,808,666.4 195,581,593.
Subtotal 0
73 00 0 8 25
Note: It refers to deferred income accordingly transferred out due to the disposal of Zhoushan Yushan
Petrochemical Engineering Co., Ltd., which was no longer brought into the consolidation scope.
4. Government subsidies included in current profits and losses
Applicable □Not applicable
Unit: RMB
Accounting subject Current period cumulative Preceding period comparative
Amount of government subsidies
828,795,283.39 2,359,477,514.76
included in other income
Impacted amount of financial discount
5,926,400.00
on total profit
Total 834,721,683.39 2,359,477,514.76
XII. Risks Relating to Financial Instruments
1. Various risks arising from 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:
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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.
(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, 2023, the Company
has a certain credit concentration risk, because 53.41% (December 31, 2022: 57.71%) 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. It 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
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Full Text of 2023 Annual Report
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 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
Amount at the end of the period
Item Undiscounted
Book value Within 1 year 1— 3 year(s) Above 3 years
contract price
Bank borrowings 197,839,011,037.27 221,286,938,697.31 77,162,762,558.85 62,140,808,417.55 81,983,367,720.91
Trading financial
623,298,741.33 623,298,741.33 78,931,785.08 544,366,956.25
liabilities
Notes payable 4,195,471,402.63 4,195,471,402.63 4,195,471,402.63
Accounts payable 49,744,126,901.38 49,744,126,901.38 49,744,126,901.38
Other payables 16,691,133,504.47 16,691,133,504.47 16,691,133,504.47
Bonds payable 2,037,082,007.25 2,073,100,000.00 2,073,100,000.00
Lease liabilities 213,541,186.47 261,662,503.81 29,346,490.83 55,282,901.20 177,033,111.78
Subtotal 271,343,664,780.80 294,875,731,750.93 149,974,872,643.24 62,740,458,275.00 82,160,400,832.69
(Cont.)
Amount at the end of last year
Item Undiscounted
Carrying amount Within 1 year 1— 3 year(s) 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
588,769,711.55 588,769,711.55 102,366,489.48 486,403,222.07
liabilities
Notes payable 3,408,800,462.03 3,408,800,462.03 3,408,800,462.03
Accounts
69,079,366,976.43 69,079,366,976.43 69,079,366,976.43
payable
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 256,591,096,488.88 305,642,967,500.73 120,108,618,805.78 43,588,366,255.89 141,945,982,439.06
(III) Market risk
Market risk means a risk that the fair value or future cash flow of the financial instrument fluctuates due to
changes in market price. It 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, 2023, the bank borrowings with a floating interest rate of the Company are RMB
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Full Text of 2023 Annual Report
157,889.1476 million, and EUR 60.7927 million (December 31, 2022: RMB 138260.1218 million). Under the
assumption that other variables remain unchanged, assuming that the interest rate changes by 50 benchmark points,
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
note V (V) 1 of Notes to Items in the Consolidated Financial Statements.
XIII. 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 at fair value
100,866,121.14 209,221,308.31 310,087,429.45
through gain and loss
Derivative financial assets 100,866,121.14 209,221,308.31 310,087,429.45
2. Receivables financing 175,036,242.93 175,036,242.93
Total assets continuously measured at
100,866,121.14 209,221,308.31 175,036,242.93 485,123,672.38
fair value
3. Trading financial liabilities
(1) Trading financial liabilities 623,298,741.33 623,298,741.33
Derivative financial liabilities 623,298,741.33 623,298,741.33
Total liabilities continuously measured
623,298,741.33 623,298,741.33
at fair value
II. 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.
3. Qualitative and quantitative information of valuation techniques and important parameters adopted
for sustained and unsustained level 2 fair value measurement items
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.
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4. 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.
XIV. Related Party and Related Transactions
1. The Company’s parent company
Proportion of
Proportion of the
the Company’s
Place of Registered Company’s voting
Name of parent company Business nature shares held by
registration capital rights held by the
the parent
parent company
company
Zhejiang Rongsheng Holding Xiaoshan, Industrial
83,466.4 51.46% 51.46%
Group Co., Ltd. Zhejiang investment
Information about the Company’s parent company
The ultimate controlling party of the Company is Li Shuirong.
Other information:
Li Shuirong directly holds 6.35% equity in the Company. Zhejiang Rongsheng Holding Group Co., Ltd.
holds 51.46% 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 32.69% of the equity of the Company, with a total of holding
39.04% of the equity of the Company.
2. Information on subsidiaries of the Company
For details of the subsidiaries of the Company, please refer to Note VII to the financial statements.
3. The Company’s joint ventures and associated enterprises
For details of the important joint ventures or associated enterprises of the Company, please refer to the notes
in Note VII to the financial statements.
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 Kunsheng Petroleum & Chemical Sales Co.,
Associated enterprise
Ltd.[Note 1]
Ningbo Coastal Public Pipe Gallery 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.[Note 2] Associated enterprise
Zhoushan ZPC Zhougang Tugboat Co., Ltd. Associated enterprise
Other information:
244 / 269
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[Note 1] The company was cancelled on October 26, 2023
[Note 2] The company was cancelled on December 4, 2023[Note 2] The company was cancelled on October
26, 2023
4. Other related parties
Relationship between other related parties and the
Name of other related parties
Company
Li Jumei Close family member of the actual controller
Controlled by a family member close to the actual
Sanyuan Holding Group Co., Ltd.
controller
Controlled by a family member close to the actual
Sanyuan Holding Group Hangzhou Thermal Power Co., Ltd.
controller
Controlled by a family member close to the actual
Zhejiang Saintyear Textile Co., Ltd.
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 Technological
The same ultimate actual controller
Development Zone
Ningbo United Group Co., Ltd. The same ultimate actual controller
Qijiashan Hotel of 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
Hangzhou Shengyuan Property Service 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 Petrochemical Investment Co., Ltd. Subsidiary of Zhejiang Yisheng Petrochemical Co., Ltd.
Subsidiary of Hong Kong Yisheng Petrochemical
Ningbo Shengmao Trading Co., Ltd.
Investment Co., Ltd.
Zhejiang Yixin Chemical Fiber Co., Ltd. Subsidiary of Zhejiang Yisheng Petrochemical Co., Ltd.
Associated enterprise of Zhejiang Rongtong Logistics
Dongzhan Shipping Co., Ltd.
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 Storage and Transportation Co., Ltd. Subsidiary of Zhejiang Provincial Petroleum Co., Ltd.
Subsidiary of Zhejiang Petroleum Storage and
Zhoushan Oil Pipeline Co., Ltd.
Transportation Co., Ltd.
ZHEJIANG PETROLEUM TRADING (SINGAPORE) PTE. LTD. Subsidiary of Zhejiang Provincial Petroleum Co., Ltd.
Aramco Overseas Company B.V. [Note 1] Shareholder
SAUDI ARABIAN OIL COMPANY [Note 1] Parent company of Aramco Overseas Company B.V.
245 / 269
Full Text of 2023 Annual Report
ARAMCO TRADING SINGAPORE PTE LTD [Note 1] Subsidiary of SAUDI ARABIAN OIL COMPANY
SAUDI BASIC INDUSTRIES CORPORATION [Note 1] Subsidiary of SAUDI ARABIAN OIL COMPANY
Sabic (Shanghai) Trading Co Ltd [Note 1] Subsidiary of SAUDI ARABIAN OIL COMPANY
Shanghai Huanqiu Engineering Co., Ltd. The Company’s actual controller serves as its director
Zhoushan Yushan Petrochemical Engineering Co., Ltd. [Note 2]
Other information:
Note 1: Aramco Overseas Company B.V. acquired 1,012,552,501 shares of the Company from Zhejiang
Rongsheng Holding Group Co., Ltd. on March 27, 2023. As a result, its parent company Saudi Arabian Oil
Company and related parties became related parties of the Company, and related party transactions with these
entities disclosed in the notes to financial statements cover the period from April to December 2024.
Note 2: The Company transferred out the equity of this entity on June 30, 2023. As a result, the Company no
longer held the equity of this entity after the equity transfer, and related party transactions with such entity
disclosed in the notes to financial statements cover the period from July to December 2024.
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 Amount of exceeds the Preceding
Current period
Related party related party transactions approved period
cumulative
transaction approved amount of comparative
transactions
Zhejiang Rongsheng Holding Coal and other 15,251,114,785. 11,324,977,38
16,000,000,000.00 No
Group Co., Ltd. materials 47 4.07
Zhejiang Rongtong Logistics 766,468,495.3
Freight 829,079,472.16 1,000,000,000.00 No
Co., Ltd. 6
Sanyuan Holding Group
Hangzhou Thermal Power Co., Steam 21,654,594.51 30,000,000.00 No 27,723,273.38
Ltd.
Work clothes
Zhejiang Saintyear Textile Co.,
and other 17,384,105.66 3,000,000.00 No
Ltd.
materials
Ningbo Hengyi Trading Co., 2,124,191,035.
PTA 618,253,217.70 3,000,000,000.00 No
Ltd. 93
Lump sum fee
Ningbo Qingzhi Chemical
for port 74,439,063.16 100,000,000.00 No 74,556,771.90
Terminal Co., Ltd.
operation
Ningbo Rongxiang Logistics
Freight 26,641,187.46 70,000,000.00 No 51,915,996.27
Co., Ltd.
Hainan Yisheng Petrochemical 113,467,387.9
PTA 18,030,557.52 300,000,000.00 No
Co., Ltd. 2
Sabic (Shanghai) Trading Co
Ethylene glycol 451,575,907.40 No
Ltd
Suzhou Shenghui Equipment Equipment and 269,205,160.24 350,000,000.00 No 286,522,982.0
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Full Text of 2023 Annual Report
Co., Ltd. materials 0
Zhejiang Yisheng
m-phthalic acid 102,296,411.49 120,000,000.00 No 39,504,938.18
Petrochemical Co., Ltd.
Ningbo Haineng Blend Oil Co., Warehousing
29,783,142.66 50,000,000.00 No 31,161,452.05
Ltd. service
Guangsha (Zhoushan) Energy Warehousing 170,569,891.0
171,212,307.87 200,000,000.00 No
Group Co., Ltd. service 4
Processing fee,
Zhejiang Derong chemicals Co. 724,948,545.9
cracking C5 and 589,026,230.79 1,500,000,000.00 No
Ltd. 0
m-pentadiene
Dongzhan Shipping Co., Ltd. Freight 27,587,848.85 50,000,000.00 No 22,790,577.07
Shanghai Huanqiu Engineering Engineering
28,970,687.63 No 16,630,000.00
Co., Ltd. design service
Device
Zhejiang Dingsheng guarantee
639,523,965.2
Petrochemical Engineering Co., service and 665,220,775.65 700,000,000.00 No
4
Ltd. maintenance
service
Zhoushan Oil Pipeline Co.,
Freight 46,804,825.72 30,000,000.00 No
Ltd.
Zhejiang Petroleum Integrated
Diesel 863,691.17 5,000,000.00 No 3,464,526.99
Energy Sales Co., Ltd.
ARAMCO
Crude oil and
TRADING SINGAPORE PTE 715,684,419.41 No
naphtha
LTD
SAUDI 66,719,031,294.
Crude oil 71,000,000,000.00 No
ARABIAN OIL COMPANY 31
215,432,135.4
Rongsheng Coal Co., Ltd. Coal, labor No
8
Qijiashan Hotel of Ningbo
Hotel services 171,052.90 1,000,000.00 No 171,361.38
United Group Co., Ltd.
Thermal Power Co., Ltd. of
Ningbo Economic and
Electricity 160,963.22 1,000,000.00 No 242,734.31
Technological Development
Zone
Ningbo Shengmao Trading Co., PX, glacial 730,930,813.1
1,000,000,000.00 No
Ltd. acetic acid 0
3,343,896,485.
Rongsheng Energy Co., Ltd. Coal No
81
ZHEJIANG
1,479,504,525.
PETROLEUM TRADING Crude oil 4,120,000,000.00 No
34
(SINGAPORE) PTE. LTD.
86,674,191,702. 22,188,595,27
Total 99,630,000,000.00
95 8.72
Information on goods sold/services provided
Unit: RMB
Contents of related party Current period Preceding period
Related party
transaction cumulative comparative
Zhejiang Rongsheng Holding Group Co., [Note 1] [Note 1]
Electric charge
Ltd.
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Full Text of 2023 Annual Report
Zhejiang Rongtong Logistics Co., Ltd. Vehicle diesel, PTA 24,940,833.81 1,102,927.84
Hainan Yisheng Petrochemical Co., Ltd. PTA, PX, cardboard 223,053,907.61 131,781,218.71
Ningbo Coastal Public Pipe Gallery Co.,
Service charge 358,742.95
Ltd.
Ningbo Shengmao Trading Co., Ltd. PTA、PX 857,363,452.14
Zhejiang Yixin Chemical Fiber Co., Ltd. PTA 147,504,424.78 60,176.99
Zhejiang Yisheng Petrochemical Co., Ltd. PTA、PX 9,086,732,238.95 5,419,751,790.07
Cracking C5, C9, diesel, power
Zhejiang Derong chemicals Co. Ltd. 943,900,741.37 1,423,173,368.85
and energy, consulting services
Zhejiang Dingsheng Petrochemical
Vehicle diesel 2,464,159.29 702,654.87
Engineering Co., Ltd.
Zhoushan Oil Pipeline Co., Ltd. Consulting services 2,931,776.45
Suzhou Shenghui Equipment Co., Ltd. Vehicle diesel 20,353.98 30,973.45
Ningbo Rongxiang Logistics Co., Ltd. Vehicle diesel 4,784,882.22 1,113,649.60
Zhejiang Petroleum Integrated Energy
Vehicle diesel and gasoline 552,873,665.11 436,779,858.10
Sales Co., Ltd.
Zhejiang Jurong Petroleum & Chemical Diethylene glycol and ethylene [Note 2] [Note 2]
Sales Co., Ltd. glycol
Zhoushan ZPC Zhougang Tugboat Co., Vehicle diesel and service
12,288,361.89 10,193,898.11
Ltd. charge
ARAMCO TRADING SINGAPORE PTE
Diesel and aviation kerosene 837,228,882.63
LTD
ZHEJIANG PETROLEUM TRADING [Note 3] [Note 3]
Crude oil
(SINGAPORE) PTE. LTD.
SAUDI BASIC INDUSTRIES
PTA 562,937,837.46
CORPORATION
Ningbo Hengyi Trading Co., Ltd. PTA 446,053,097.35
Zhejiang Saintyear Textile Co., Ltd. Polyester filament 322.09
Zhejiang Kunsheng Petroleum & Chemical Petroleum benzene, ethylene [Note 2] [Note 2]
Sales Co., Ltd. glycol, PX
Zhoushan Yushan Petrochemical
Electricity 227,688,076.20
Engineering Co., Ltd.
Total 13,487,072,336.84 7,870,743,936.03
Note to related party transactions of goods purchase & sale and labor services rendering & receiving
[Note 1] The Company sold RMB 1,374,709.77 of electricity to Zhejiang Rongsheng Holding Group Co.,
Ltd. this year (the book has been recognized to be zero by net method), and the electricity sold to Zhejiang
Rongsheng Holding Group Co., Ltd. in the same period last year amounted to RMB 1,427,049.42.
[Note 2] The Company sells its products through the related party Zhejiang Jurong Petrochemical Sales Co.,
Ltd., and the accumulated transaction amount through this company this year was RMB 56,928,200; The
cumulative transaction amount of products sold through related parties Zhejiang Kunsheng Petrochemical Sales
Co., Ltd. and Zhejiang Jurong Petrochemical Sales Co., Ltd. in the same period of last year was RMB
16,467,983,900
[Note 3] The Company sells products for ZHEJIANG PETROLEUM TRADING (SINGAPORE) PTE. LTD.,
and the cumulative sales amount through this company this year was RMB 1,108,514,100; The cumulative sales
amount through this company in the same period of last year was RMB 1,168,597,800
248 / 269
Full Text of 2023 Annual Report
(2) Related leasing
The Company acts as the Lessor:
Unit: RMB
Rental income Rental 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 1,284,403.67 1,238,938.05
The Company acts as the Lessee:
Unit: RMB
Rental expenses for short-term
leases and leases of low-value
Rent paid
assets on a simplified basis (if
Type of leased applicable)
Name of lessor
asset
Current Preceding Current Preceding
period period period period
cumulative comparative cumulative comparative
Hangzhou Shengyuan Property Service
Parking space 175,428.61
Co., Ltd.
Hangzhou Shengyuan Real Estate
House leasing 4,276,509.52 3,695,254.32
Development Co., Ltd.
Zhejiang Rongsheng Holding Group
House leasing 550,458.72 550,458.72
Co., Ltd.
Zhejiang Yixin Chemical Fiber Co.,
House leasing 365,845.33 1,015,495.53
Ltd.
(3) Affiliated guarantees
The Company as guarantor
Unit: RMB
Whether the
Guarantee Starting date of Ending date of guarantee
Secured party
amount the guarantee the guarantee has been
performed
Zhejiang Rongsheng Holding Group Co., Ltd. 70,879,762,340.15 January 29, 2021 June 11, 2028 No
Zhejiang Rongsheng Holding Group Co., Ltd., December 08, December 08,
4,035,244,000.00 No
the Company 2022 2024
Zhejiang Rongsheng Holding Group Co.,
538,291,939.80 April 28, 2020 April 01, 2029 No
Ltd.[Note 1]
Zhejiang Rongsheng Holding Group Co.,
1,195,833,333.30 May 08, 2021 January 15, 2026 No
Ltd.[Note 2]
Zhejiang Rongsheng Holding Group Co., November 22,
2,463,974,848.44 October 20, 2027 No
Ltd.[Note 3] 2021
Zhejiang Rongsheng Holding Group Co.,
129,494,713.67 June 09, 2020 June 15, 2026 No
Ltd.[Note 4]
Zhejiang Rongsheng Holding Group Co., 2,508,000,000.00 October 12, 2022 October 12, 2025 No
249 / 269
Full Text of 2023 Annual Report
Ltd.[Note 5]
Zhejiang Rongsheng Holding Group Co., November 14,
15,169,699,810.99 October 30, 2030 No
Ltd.[Note 6] 2022
Zhejiang Rongsheng Holding Group Co., Ltd.,
19,223,805,316.59 July 31, 2018 July 30, 2030 No
the Company, Li Shuirong, Li Jumei [Note 7]
Zhejiang Rongsheng Holding Group Co.,
29,929,017,600.00 January 20, 2021 January 19, 2033 No
Ltd.[Note 8]
Zhejiang Rongsheng Holding Group Co.,
3,831,666,666.64 January 14, 2021 August 29, 2026 No
Ltd.[Note 9]
Zhejiang Rongsheng Holding Group Co., Ltd. 3,234,829,429.15 July 07, 2023 June 26, 2026 No
Zhejiang Rongsheng Holding Group Co.,
100,000,000.00 July 10, 2023 March 05, 2024 No
Ltd.[Note 10]
November 08,
Zhejiang Rongsheng Holding Group Co., Ltd. 22,088,051,116.84 February 09, 2023 No
2024
Zhejiang Rongsheng Holding Group Co., Ltd. 9,535,910,524.78 January 27, 2021 October 14, 2024 No
December 30,
Zhejiang Rongsheng Holding Group Co., Ltd. 155,604,705.86 April 27, 2023 No
2024
Zhejiang Rongsheng Holding Group Co.,
27,454,888.08 October 20, 2023 May 15, 2024 No
Ltd.[Note 5]
Zhejiang Rongsheng Holding Group Co.,
681,603,293.98 October 31, 2023 February 26, 2024 No
Ltd.[Note 5]
Zhejiang Rongsheng Holding Group Co.,
239,692,654.33 April 25, 2023 August 26, 2026 No
Ltd.[Note 6]
Zhejiang Rongsheng Holding Group Co.,
143,406,472.46 July 24, 2023 January 31, 2026 No
Ltd.[Note 6]
Zhejiang Rongsheng Holding Group Co., Ltd.,
1,171,500,000.00 August 03, 2023 March 26, 2024 No
the Company
Zhejiang Rongsheng Holding Group Co., Ltd.,
10,802,077.44 June 06, 2019 January 01, 2024 No
the Company, Li Shuirong, Li Jumei [Note 7]
Zhejiang Rongsheng Holding Group Co., Ltd.,
3,644,856.58 April 07, 2021 May 20, 2024 No
the Company, [Note 8]
Zhejiang Rongsheng Holding Group Co., Ltd.,
54,212,339.39 July 29, 2021 January 31, 2026 No
the Company, [Note 8]
Zhejiang Rongsheng Holding Group Co., Ltd. 5,361,425,939.00 August 16, 2022 October 30, 2024 No
Zhejiang Rongsheng Holding Group Co.,
327,210,000.00 July 18, 2023 July 20, 2024 No
Ltd.[Note 5]
Description of related guarantee
[Note 1] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. Ningbo Niluoshan New Energy Co., Ltd., a subsidiary of the Company, provided
mortgage guarantee for fixed assets and intangible assets of RMB 103,511,200.
[Note 2] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. Ningbo Zhongjin Petrochemical Co., Ltd., a subsidiary of the Company, provided
mortgage guarantee with fixed assets of RMB 4,437,090,200.
[Note 3] 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 3,850,830,100.
[Note 4] 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 1,162,730,900.
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[Note 5] Zhejiang Rongsheng Holding Group Co., Ltd. provides joint liability guarantee for 60% of the
guarantee amount.
[Note 6] 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 7] Zhejiang Rongsheng Holding Group Co., Ltd. and the Company have provided 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).
[Note 8] Zhejiang Rongsheng Holding Group Co., Ltd. and the Company have provided 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 9] 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 machinery and equipment worth RMB 4,759.2430 million
[Note 10] Zhejiang Rongsheng Holding Group Co., Ltd. provided joint and several liability guarantee for 100%
of the amount guaranteed. The Company’s subsidiary Zhejiang Yongsheng Technology Co., Ltd. provided pledged
guarantee with certificates of deposit of 25.00 million yuan.
(4) Remuneration of key management personnel
Unit：RMB 10,000
Item Current period cumulative Preceding period comparative
Remuneration of key management personnel 1,259.14 1,526.77
(5) Other related transactions
1. Fund borrowing from/to related parties
(1) At the beginning of the period, the Company had RMB 1,539.5134 million payable to Zhejiang
Rongsheng Holding Group Co., Ltd.; in the current period, the Company has borrowed RMB 19,821.00 million
from Zhejiang Rongsheng Holding Group Co., Ltd., made RMB 183.0102 million provisions for fund possession
cost, and returned RMB 6,927.76 million of principal and interest on a cumulative basis. As of December 31,
2023, the amount payable by the Company is RMB 14,615.7636 million.
In the current period, the subsidiary Zhejiang Shengyuan Chemical Fiber Co., Ltd. has borrowed RMB
1,700.00 million from Zhejiang Rongsheng Holding Group Co., Ltd. and returned RMB 1,700.00 million on a
cumulative basis. As of December 31, 2023, 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 988.00 million and RMB 1.4339
251 / 269
Full Text of 2023 Annual Report
million, respectively. In the current period, RMB 988.00 million was paid in due course, RMB 786.00 million of
the entrusted loan was received, RMB 40.6975 million of entrusted loan interest was accrued, and RMB 40.9822
million of entrusted loan interest was paid. As of December 31, 2023, RMB 786.00 million of entrusted loan and
RMB 1.1492 million of entrusted loan interest were not yet due for payment.
(3) At the beginning of the period, the subsidiary Zhejiang Petroleum & Chemical Co., Ltd. had receivables
of 4.80 million yuan from ZPC ENN (Zhoushan) Gas Co., Ltd. In the current period, it lent funds of 6.00 million
yuan, accrued interest of 0.26 million yuan, and recovered principal and interest of 0.26 million yuan. As of
December 31, 2023, the balance was 10.80 million yuan.
2. As of December 31, 2023, 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.
As of December 31, 2023, the subsidiaries Yisheng Dahua Petrochemical Co., Ltd. and Zhejiang Petroleum
& Chemical Co., Ltd. had accumulatively made payments for engineering equipment of 116.12 million yuan to
Suzhou Shenghui Equipment Co., Ltd.
As of December 31, 2023, the subsidiary Zhejiang Yisheng New Materials Co., Ltd. had accumulatively
made payments for engineering equipment of 11.00 million yuan to Zhejiang Dongjiang Green Petrochemical
Technology Innovation Center Co., Ltd. concerning the construction contracts in progress.
As of December 31, 2023, the subsidiary Zhejiang Petroleum & Chemical Co., Ltd. had accumulatively
made payments for engineering equipment of 37.28 million yuan to Zhejiang Dingsheng Petrochemical
Engineering Co., Ltd.
3. In the current period, the subsidiary Rongsheng Petrochemical (Singapore) Pte. Ltd. had paper transactions
with Hong Kong Yisheng Co., Ltd., with investment income of USD 2,343,288.37. It also had paper transactions
with Hong Kong Yisheng Petrochemical Investment Co., Ltd., with investment income of USD 2,698,895.30.
4. As of December 31, 2023, the deposit balance of the Company and its subsidiaries in the related party
Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. was RMB 602,458,616.33, USD 1,066,990.04 and EUR
129.66.
5. Assets transfer of the related parties
Content of Type of related Pricing principle of
Transferee related party party Time related party Amount
transactions transactions transactions
Hainan Yisheng
Fixed assets Transfer 2023 Agreed price 29,203,539.82
Petrochemical Co., Ltd.
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Project Related party Bad-debt Bad-debt
Book balance Book balance
provision provision
Accounts
receivable
Zhejiang Yisheng Petrochemical
317,158,242.68 38,391,748.43 328,112,466.43 18,074,604.36
Co., Ltd.
SAUDI BASIC INDUSTRIES
71,159,154.19 3,557,957.71
CORPORATION
252 / 269
Full Text of 2023 Annual Report
Zhejiang Derong chemicals Co.
57,463,699.62 2,873,184.98
Ltd.
Zhejiang Kunsheng Petroleum &
299,160,177.48 14,958,008.87
Chemical Sales Co., Ltd.
Subtotal 445,781,096.49 44,822,891.12 627,272,643.91 33,032,613.23
Advance payment
Ningbo Hengyi Trading Co.,
6,000,000.00
Ltd.
Hangzhou Shengyuan Real
3,567,132.35 3,063,364.94
Estate Development Co., Ltd.
Ningbo Shengmao Trading Co.,
52,067,253.14
Ltd.
Subtotal 9,567,132.35 55,130,618.08
Other receivables
ZPC-ENN (Zhoushan) Gas Co.,
10,800,000.00 1,893,309.57 4,800,000.00 523,802.73
Ltd.
Rongsheng Energy Co., Ltd. 10,665.06 533.25 14,992.79 749.64
Hong Kong Yisheng Co., Ltd. 1,135,320.34
Hong Kong Yisheng
Petrochemical Investment Co., 412,896.31
Ltd.
Subtotal 10,810,665.06 1,893,842.82 6,363,209.44 524,552.37
(2) Payables
Unit: RMB
Ending book Beginning book
Project Related party
balance balance
Accounts payable Rongsheng Petrochemical (Singapore) Pte. Ltd. [Note] 17,500,740,384.58 33,752,876,000.52
Ningbo Zhongjin Petrochemical Co., Ltd. [Note] 1,004,420,000.00 538,000,000.00
Zhejiang Yisheng New Materials Co., Ltd. [Note] 941,459,043.38 1,597,577,255.10
Yisheng Dahua Petrochemical Co., Ltd. [Note] 770,000,000.00 2,053,414,700.00
Dalian Rongxincheng Trading Co., Ltd. [Note] 494,747,501.53 1,692,694,346.81
Zhejiang Rongtong Chemical Fiber New Material Co.,
465,060,958.88 21,596,060.00
Ltd. [Note]
The Company [Note] 385,000,000.00 230,000,000.00
Zhejiang Petroleum & Chemical Co., Ltd. [Note] 380,248,726.38 2,265,876,894.64
Zhejiang Shengyuan Chemical Fiber Co., Ltd. [Note] 158,000,000.00 40,288,400.00
Dalian Yisheng New Materials Co., Ltd. [Note] 19,500,000.00
SAUDI ARABIAN OIL COMPANY 7,482,166,334.12
ARAMCO TRADING SINGAPORE PTE LTD 365,498,003.53
Guangsha (Zhoushan) Energy Group Co., Ltd. 22,833,934.16
Zhejiang Rongtong Logistics Co., Ltd. 114,735,427.56 294,356,317.53
Suzhou Shenghui Equipment Co., Ltd. 19,581,790.48 35,726,908.47
Ningbo Qingzhi Chemical Terminal Co., Ltd. 6,456,923.33 11,606,791.20
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Zhoushan Oil Pipeline Co., Ltd. 6,309,654.33
Shanghai Huanqiu Engineering Co., Ltd. 3,672,000.00
Zhejiang Saintyear Textile Co., Ltd. 3,196,676.08
Dongzhan Shipping Co., Ltd. 2,668,604.42 4,563,302.75
Ningbo Haineng Blend Oil Co., Ltd. 379,208.29
Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. 320,000.00
Zhejiang Derong chemicals Co. Ltd. 175,832,956.88
Ningbo Rongxiang Logistics Co., Ltd. 1,811,859.97 7,324,253.61
Daishan Chenyu Real Estate Co., Ltd. 5,541,000.66
Electric Power Branch, Thermal Power Co., Ltd. of
53,941.82 12,062.48
Ningbo Economic and Technological Development Zone
Ningbo United Group Co., Ltd. 8,058.00 8,058.00
Subtotal 30,129,369,030.84 42,746,795,308.65
Contract
liabilities and
other current
liabilities
Zhejiang Petroleum Integrated Energy Sales Co., Ltd. 23,731,636.49 1,061,404.81
Zhejiang Rongtong Logistics Co., Ltd. 2,268,575.00
Ningbo Shengmao Trading Co., Ltd. 302,096.62
Zhoushan ZPC Zhougang Tugboat Co., Ltd. 254,037.39 1,639,886.33
Zhejiang Saintyear Textile Co., Ltd. 11,048.15 45,602.11
Zhejiang Jurong Petroleum & Chemical Sales Co., Ltd. 1,825,881.25
Subtotal 26,567,393.65 4,572,774.50
Other payables
Zhejiang Rongsheng Holding Group Co., Ltd. 14,615,763,666.09 1,539,513,447.19
Zhejiang Yisheng Petrochemical Co., Ltd. 787,149,197.50 989,433,904.99
Zhoushan Yushan Petrochemical Engineering Co., Ltd. 160,956,591.37
Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. 11,700.00
Zhejiang Yixin Chemical Fiber Co., Ltd. 365,845.33 1,015,495.53
Subtotal 15,564,247,000.29 2,529,962,847.71
Note: They refer to letters of credit issued by the Company and its subsidiaries, which had been discounted
by Rongsheng Petrochemical (Singapore) Pte. Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., Zhejiang Yisheng
New Materials Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Dalian Rongxincheng Trading Co., Ltd,
Zhejiang Rongtong Chemical Fiber New Materials Co. Ltd., the Company, Zhejiang Petroleum & Chemical Co.,
Ltd. and Zhejiang Shengyuan Chemical Fiber Co., Ltd. upon receipt.
XV. Commitments and Contingencies
1. Major commitments
Significant commitments at the balance sheet date
(I) Significant commitments
1. As of December 31, 2023, the Company and its subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd.,
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Yisheng Dahua Petrochemical Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd., Rongsheng Petrochemical
(Singapore) Pte. Ltd., Zhejiang Yongsheng Technology Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd.,
Zhejiang Yisheng New Materials Co., Ltd. and Zhejiang Yongsheng Technology Co., Ltd. had letters of credit
issued but unused totaling 25,868.30 million yuan, USD 3,182.32 million, EUR 83.60 million and GBP 0.63
million at Bank of Communications Co., Ltd. Hangzhou Xiaoshan Branch and other financial institutions.
2. As of December 31, 2023, the undue letters of guarantee of the Company and its subsidiaries are as
follows:
Unit：RMB 10,000
Guarantee
Issuing bank Name of issuing company Beneficiary
amount
Shanghai Pudong Development Bank Zhejiang Petroleum &
Guiyan Resources (Yimen) Co., Ltd CNY 9,340.80
Co., Ltd. Zhoushan Branch Chemical Co., Ltd.
Shanghai Pudong Development Bank Zhejiang Petroleum & Hangzhou Customs of the People’s
CNY 91,505.00
Co., Ltd. Zhoushan Branch Chemical Co., Ltd. Republic of China
Shanghai Pudong Development Bank Zhejiang Petroleum & Hangzhou Branch of Standard
CNY 42,000.00
Co., Ltd. Zhoushan Branch Chemical Co., Ltd. Chartered Bank (China) Limited
Agricultural Bank of China Limited Zhejiang Petroleum & Hangzhou Customs of the People’s
CNY 91,065.00
Xiaoshan Branch Chemical Co., Ltd. Republic of China
China Construction Bank Corporation Zhejiang Petroleum & Mitsubishi Commercial Metal
CNY 7,069.55
Zhoushan Branch Chemical Co., Ltd. Trading (China) Co., Ltd.
China Construction Bank Corporation Zhejiang Petroleum & CCCC Water Resources and
CNY 300.00
Zhoushan Branch Chemical Co., Ltd. Hydropower Construction Co., Ltd.
China Construction Bank Corporation Zhejiang Petroleum & Hangzhou Customs of the People’s
CNY 50,000.00
Zhoushan Branch Chemical Co., Ltd. Republic of China
China Construction Bank Corporation Zhejiang Petroleum &
Guiyan Resources (Yimen) Co., Ltd CNY 12,862.25
Zhoushan Branch Chemical Co., Ltd.
Bank of China Co., Ltd., Zhoushan Zhejiang Petroleum & Hangzhou Customs of the People’s
CNY 65,915.00
Branch Chemical Co., Ltd. Republic of China
Zhejiang Petroleum & Hangzhou Customs of the People’s
Huaxia Bank Co., Ltd., Zhoushan Branch CNY 36,010.00
Chemical Co., Ltd. Republic of China
Wenzhou Bank Co., Ltd., Zhoushan Zhejiang Petroleum & Hangzhou Customs of the People’s
CNY 28,960.00
Branch Chemical Co., Ltd. Republic of China
Hangzhou Xiaoshan Branch of Bank of Zhejiang Petroleum & Hangzhou Customs of the People’s
CNY 13,650.00
Communications Co., Ltd. Chemical Co., Ltd. Republic of China
Ping An Bank Co., Ltd. Ningbo Zhenhai Zhejiang Petroleum & Hangzhou Customs of the People’s
CNY 32,000.00
Branch Chemical Co., Ltd. Republic of China
Industrial and Commercial Bank of Zhejiang Petroleum & Hangzhou Customs of the People’s
CNY 100,000.00
China Limited, Zhoushan Branch Chemical Co., Ltd. Republic of China
Dalian Jinpu New Area Branch of Bank Yisheng Dahua Yisheng Dahua Petrochemical Co.,
CNY 10,000.00
of China Limited Petrochemical Co., Ltd. Ltd.
2. Contingencies
(1) Important contingencies on balance sheet date
As of the balance sheet date, the Company has no important contingencies that need to be disclosed.
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(2) Explanation even if the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.
XVI. Events after the Balance Sheet Date
Profit distribution after the balance sheet date
Pursuant to the profit distribution plan deliberated and approved by the 17th meeting of the sixth session of
the Board of Directors dated April 24, 2024, the Company plans to distribute cash dividend of 1 yuan (tax
inclusive) per 10 shares to all shareholders. The Company plans to distribute cash dividend of 1 yuan (tax
inclusive) per 10 shares to all shareholders. Cash dividend totaling 957,314,454.2 yuan (tax inclusive) is to
be distributed, which is calculated based on the Company’s total share less accumulative repurchased
Profit or dividend
shares of 552,380,458 shares as of the date of approval for issuing the financial statements, i.e.,
planned to be
9,573,144,542 shares, with remaining undistributed profit carried forward to the following period. The
distributed
shares of the Company held by the Company through the special securities account for repurchase will not
participate in the profit distribution. If the Company’s total share capital changes due to convertible bond
conversion, share repurchase, repurchase and cancellation of equity incentive shares granted, grant and
registration of reserved shares, etc. before the equity registration date of equity distribution, total
distribution amount will be adjusted, with distribution proportion unchanged.
XVII. Other Important Matters
1. Segment information
(1) Determination basis and accounting policies for reporting segments
Factors considered in determining the segment for the report
The Company determines 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. The assets and liabilities jointly
used with each segment are distributed among different segments according to the scale ratio.
(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
Revenue from -
121,737,527,06 205,899,184,72 14,733,866,831 233,264,029,31 324,161,501,35
main 251,473,106,57
5.55 0.10 .49 2.54 3.80
businesses 5.88
-
Main business 97,666,424,577 194,032,228,08 14,261,450,788 232,473,056,03 286,937,146,14
251,496,013,34
costs .45 0.09 .32 4.39 0.13
0.12
-
353,017,879,41 17,797,550,104 374,918,440,31
Total assets 61,590,694,751.04 57,487,683,959
6.50 .03 1.68
.89
-
242,535,921,61 14,555,076,793 280,249,618,67
Total liabilities 42,256,328,194.48 19,097,707,928
0.80 .84 0.39
.73
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XVIII. Notes to Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive of 1 year) 15,627,737.43 71,262,020.85
1-2 years 3,459,098.34 3,349,680.56
2-3 years 2,988,301.68 115,088.06
Above 3 years 101,666.96
3-4 years 101,666.96
Total 22,176,804.41 74,726,789.47
(2) Classified disclosure by bad debt accrual method
Unit: RMB
Closing balance Opening balance
Book
Book balance Bad-debt provision Book balance Bad-debt provision
value
Category Book
Provision value Provision
Amou Amou
Amount Ratio proportio Amount Ratio proportio
nt nt
n n
Accounts
receivable
with
provision
for bad 22,176,8 2,125, 20,051,3 74,726,7 3,932,5 70,794,1
100.00% 9.58% 100% 5.26%
debt 04.41 454.16 50.25 89.47 95.52 93.95
reserves
based on
aging
portfolio
22,176,8 2,125, 20,051,3 74,726,7 3,932,5 70,794,1
Total 100.00% 9.58% 100% 5.26%
04.41 454.16 50.25 89.47 95.52 93.95
Provision made for bad debt reserves based on aging portfolio: RMB 2,125,454.16.
Unit: RMB
Closing balance
Name
Book balance Bad-debt provision Provision proportion
Within 1 year 15,627,737.43 781,386.87 5.00%
1— 2 year(s) 3,459,098.34 345,909.83 10.00%
2-3 year(s) 2,988,301.68 896,490.50 30.00%
Above 3 years 101,666.96 101,666.96 100.00%
Total 22,176,804.41 2,125,454.16 9.58%
Provision made for bad debt reserves based on aging portfolio: RMB 2,125,454.16.
If the provision for bad debts of accounts receivable is accrued according to the general model of expected credit
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Full Text of 2023 Annual Report
loss:
□Applicable Not applicable
(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
Opening Closing
Category Recovered or
balance Provision Write-off Others balance
returned
Provision made for bad
debt reserves based on 3,932,595.52 -1,807,141.36 2,125,454.16
aging portfolio
Total 3,932,595.52 -1,807,141.36 2,125,454.16
(4) Accounts receivables and contract assets with top 5 closing balances by debtor
Unit: RMB
Closing balance
Proportion of of bad debt
Closing balance accounts provision for
Closing balance Closing balance
of accounts receivable and accounts
Company name of accounts of contract
receivable and total closing receivable and
receivable assets
contract assets balance of impairment
contract assets provision of
contract assets
Hangzhou Hengyue New
2,101,500.00 2,101,500.00 9.48% 105,075.00
Material Co., Ltd.
Liyang Dongfa Textile Co.,
930,606.91 930,606.91 4.20% 46,530.35
Ltd.
Alpine, S.A.THRU
KAPAK TEXTILE CO., 857,419.41 857,419.41 3.87% 42,870.97
LTD.
Zhejiang Juxing Chemical
744,784.32 744,784.32 3.36% 37,239.22
Fiber Co., Ltd.
Huzhou Mingchuang
669,430.81 669,430.81 3.01% 66,943.07
Textile Co., Ltd.
Total 5,303,741.45 5,303,741.45 23.92% 298,658.61
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 1,230,000,000.00 300,000,000.00
Other receivables 2,049,228,160.71 374,169,712.95
Total 3,279,228,160.71 674,169,712.95
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Full Text of 2023 Annual Report
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Project (or investee) Closing balance Opening balance
Hong Kong Sheng Hui Co., Ltd. 550,000,000.00 300,000,000.00
Ningbo Zhongjin Petrochemical Co.,
300,000,000.00
Ltd.
Zhejiang Yongsheng Technology Co.,
280,000,000.00
Ltd.
Zhejiang Shengyuan Chemical Fiber Co.,
100,000,000.00
Ltd.
Total 1,230,000,000.00 300,000,000.00
2) Significant dividends receivable aged over 1 year
Unit: RMB
Reason for the
Whether impairment occurs
Project (or investee) Closing balance Aging unrecovered
and its judgment basis
amount
Subsidiaries and their affiliates
Hong Kong Sheng Hui Co., operate normally, and no risk is
300,000,000.00 Above 3 years Unrecovered
Ltd. expected in the recovery of
funds.
Total 300,000,000.00
3) Classified disclosure by bad debt accrual method
□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
1,299,250,326.32 373,727,461.92
parties within the consolidation scope
Grants receivables 744,000,000.00
Deposit receivable margin portfolio 6,312,327.58 600,000.00
Portfolio of petty cash receivable, etc. 2,169,706.59 2,050,211.43
Total 2,051,732,360.49 376,377,673.35
2) Disclosure by aging
Unit: RMB
259 / 269
Full Text of 2023 Annual Report
Aging Ending book balance Beginning book balance
Within 1 year (inclusive of 1 year) 1,676,042,783.57 688,096.43
1-2 years 373,500,000.00
2-3 years 373,500,000.00 6,640.36
Above 3 years 2,189,576.92 2,182,936.56
3-4 years 2,189,576.92 2,182,936.56
Total 2,051,732,360.49 376,377,673.35
3) Classified disclosure by bad debt accrual method
Unit: RMB
Closing balance Opening balance
Book balance Bad-debt provision Book balance Bad-debt provision
Categor
y Provisio Book Provisio Book
n value n value
Amount Ratio Amount Amount Ratio Amount
proporti proporti
on on
Provisio
n made
for bad
debt 2,051,73 2,504,19 2,049,22 376,377, 2,207,96 374,169,
100.00% 0.12% 100.00% 0.59%
reserves 2,360.49 9.78 8,160.71 673.35 0.40 712.95
based on
aging
portfolio
2,051,73 2,504,19 2,049,22 376,377, 2,207,96 374,169,
Total 100.00% 0.12% 100.00% 0.59%
2,360.49 9.78 8,160.71 673.35 0.40 712.95
Accounts receivable with provision for bad debt reserves based on aging portfolio:
Unit: RMB
Closing balance
Name
Book balance Bad-debt provision Provision proportion
Portfolio of transactions
between related parties within 1,299,250,326.32
the consolidation scope
Grants receivables 744,000,000.00
Deposit receivable margin
6,312,327.58 891,924.72 14.13%
portfolio
Portfolio of petty cash
2,169,706.59 1,612,275.06 74.31%
receivable, etc.
Total 2,051,732,360.49 2,504,199.78 0.12%
Provision for bad debts is made according to the general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
Expected Expected credit loss over Expected credit loss for
Bad-debt provision credit loss in the entire duration the entire duration Total
the next 12 (without credit (credit impairment has
months impairment) occurred)
Balance as of January 1, 2023 23,031.73 2,184,928.67 2,207,960.40
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Full Text of 2023 Annual Report
The balance as of January 1,
2023 in the current period
Provision in current period 291,591.13 4,648.25 296,239.38
Balance as of December 31, 2023 314,622.86 2,189,576.92 2,504,199.78
Book balance changes with significant changes in loss provisions in the current period
Applicable □Not applicable
4) 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
Opening Closing
Category Recovered or Write-off or
balance Provision Others balance
returned cancellation
Provision made
for bad debt
reserves based 2,207,960.40 296,239.38 2,504,199.78
on aging
portfolio
Total 2,207,960.40 296,239.38 2,504,199.78
Including: the amount of important bad debt provision reversal or recovery in the current period:
5) Top five debtors with the biggest closing balances of other accounts receivable
Unit: RMB
Closing
Proportion in total balance of
Company name Nature of payment Closing balance Aging closing balance of provision
other receivables for bad
debts
Portfolio of
transactions
Rongsheng New Material Within 1
between related 831,426,855.12 40.52%
(Taizhou) Co., Ltd. year
parties within the
consolidation scope
People’s government of Yinong
Within 1
Town, Xiaoshan District, Grants receivables 644,000,000.00 31.39%
year
Hangzhou
Portfolio of
transactions
Dalian Yisheng Investment Co., 2-3
between related 373,500,000.00 18.20%
Ltd. year(s)
parties within the
consolidation scope
Investment Promotion Agency of Within 1
Grants receivables 100,000,000.00 4.87%
Xiaoshan District, Hangzhou year
Portfolio of
transactions
Rongsheng (Zhoushan) New Within 1
between related 60,000,000.00 2.92%
Materials Co., Ltd. year
parties within the
consolidation scope
Subtotal 2,008,926,855.12 97.90%
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3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairme impairme
nt nt
Investment in
40,951,102,808.47 40,951,102,808.47 39,462,393,720.56 39,462,393,720.56
subsidiaries
Investment in
joint ventures
3,916,960,592.70 3,916,960,592.70 3,742,216,481.79 3,742,216,481.79
and associated
enterprises
Total 44,868,063,401.17 44,868,063,401.17 43,204,610,202.35 43,204,610,202.35
(1) Investment in subsidiaries
Unit: RMB
Increase and decrease in the Closing
Opening
current period balance of
Opening balance balance of Closing balance
Investee provision
(Book value) impairment Additional Reduced (Book value)
for
provision investment investment impairment
Zhejiang
Petroleum &
28,457,242,115.34 28,457,242,115.34
Chemical Co.,
Ltd.
Ningbo Zhongjin
Petrochemical 5,990,201,140.04 5,990,201,140.04
Co., Ltd.
Zhejiang
Shengyuan
2,030,140,000.00 2,030,140,000.00
Chemical Fiber
Co., Ltd.
Dalian Yisheng
Investment Co., 1,468,204,457.48 1,468,204,457.48
Ltd.
Rongsheng
Petrochemical
620,889,560.00 620,889,560.00
(Singapore) Pte.
Ltd.
Zhejiang
Yongsheng
198,306,537.70 198,306,537.70
Technology Co.,
Ltd.
Hong Kong
Sheng Hui Co., 141,419,910.00 141,419,910.00
Ltd.
Rongsheng
International 100,000,000.00 100,000,000.00
Trading Co., Ltd.
Rongxiang
Chemical Fiber 3,000,000.00 3,000,000.00
Co., Ltd.
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Rongsheng
International
1,000,000.00 1,000,000.00
Trading (Hainan)
Co., Ltd.
Rongsheng
Chemical
40,000,000.00 40,000,000.00
(Shanghai) Co.,
Ltd.
Rongsheng
(Zhoushan) New
130,000,000.00 870,000,000.00 1,000,000,000.00
Materials Co.,
Ltd.
Rongsheng New
Material
281,990,000.00 646,209,000.00 28,199,000.00 900,000,000.00
(Taizhou) Co.,
Ltd.
Rongsheng
Petrochemical
699,087.91 699,087.91
(Hong Kong)
Co., Ltd.
Total 39,462,393,720.56 1,516,908,087.91 28,199,000.00 40,951,102,808.47
(2) Investment in joint ventures and associated companies
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Full Text of 2023 Annual Report
Unit: RMB
Increase and decrease in the current period
Opening Investme
Other Closing
balance nt gains Declared Closing
Opening Additio comprehe Provisi balance of
of Reduced or losses Other distributi balance
Investee balance nal nsive on for provision
impairm investme recognize equity on of cash Others (Book
(Book value) investm income impair for
ent nt d under changes dividends value)
ent adjustme ment impairment
provision the equity or profits
nts
method
I. Joint ventures
II. Associated enterprise
Zhejiang Yisheng 1,476,728,206. 7,296,676. 2,600,863. 1,486,625,74
Petrochemical Co., Ltd. 10 92 91 6.93
Zhejiang Xiaoshan Rural
2,006,079,840. 264,616,5 31,810,38 39,685,91 2,262,820,80
Commercial Bank Co.,
15 00.51 3.42 8.80 5.28
Ltd.
-
Ningbo Hengyi Trading 231,733,252.4 135,705.5 167,514,040.
64,354,91
Co., Ltd. 4 6 49
7.51
Zhejiang Kunsheng
19,212,20 5,991,195.
Petroleum & Chemical 13,221,013.56
8.79 23
Sales Co., Ltd.
Zhejiang Jurong
14,464,52
Petroleum & Chemical 14,454,169.54 10,351.33
0.87
Sales Co., Ltd.
3,742,216,481. 33,676,72 213,559,8 34,546,95 39,685,91 3,916,960,59
Subtotal
79 9.66 06.48 2.89 8.80 2.70
3,742,216,481. 33,676,72 213,559,8 34,546,95 39,685,91 3,916,960,59
Total
79 9.66 06.48 2.89 8.80 2.70
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□Applicable Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable Not applicable
264 / 269
Full Text of 2023 Annual Report
4. Operating income and operating costs
Unit: RMB
Current period cumulative Preceding period comparative
Item
Revenue Cost Revenue Cost
Primary business 3,749,052,513.75 3,674,697,564.89 3,854,072,437.22 3,945,950,073.69
Other Businesses 52,411,684.97 48,284,096.24 52,594,679.36 76,555,884.57
Total 3,801,464,198.72 3,722,981,661.13 3,906,667,116.58 4,022,505,958.26
Breakdown information of operating income and operating cost:
1) Breakdown of revenue generated by contracts with customers by major categories
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Polyester chemical
3,749,052,513.75 3,674,697,564.89 3,854,072,437.22 3,945,950,073.69
fiber film
Trade and others 51,127,281.30 48,012,650.24 51,310,275.69 76,284,438.57
Subtotal 3,800,179,795.05 3,722,710,215.13 3,905,382,712.91 4,022,234,512.26
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 3,800,179,795.05 3,905,382,712.91
Subtotal 3,800,179,795.05 3,905,382,712.91
Other notes
The revenue recognized in the current period included in the opening book value of contract liabilities is
RMB 137,779,687.57.
Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of income corresponding to the performance obligations that
had been signed but had not been fulfilled or had not been fulfilled completely was RMB 137,779,687.57.
5. Investment income
Unit: RMB
Item Current period cumulative Preceding period comparative
Long-term equity investment income calculated by
930,000,000.00 2,550,000,000.00
equity method
Long-term equity investment income calculated by
213,559,806.48 268,195,976.97
equity method
Investment income from disposal of long-term equity
136,583.66 61,902.58
investments
Investment income from disposal of trading financial
227,990.03
assets
Interest income from the inter-bank loan of related party 15,535,855.12
Financing discount loss of receivables -69,752,714.18 -82,184,988.26
Total 1,089,479,531.08 2,736,300,881.32
265 / 269
Full Text of 2023 Annual Report
XVIII. Supplementary Information
1. Breakdown of non-recurring gains and losses in the current period
Applicable □Not applicable
Unit: RMB
Item Amount Notes
Profits and losses on disposal of non-current assets 34,130,889.49
Government subsidies included in the current profits and losses (except those closely
related to the Company's normal business operations, which are in line with national
60,299,389.39
policies, enjoyed according to certain standards, and have a continuous impact on the
Company's profits and losses)
Except for the effective hedging business related to the Company's normal business, the
gains and losses of the fair value changes arising from financial assets and financial
483,856,260.59
liabilities held by non-financial enterprises and the gains and losses arising from the
disposal of financial assets and financial liabilities
Fund possession cost included in current gain and loss charged to non-financial
248,144.66
enterprises
Other non-operating revenues and expenditures except for the aforementioned items -7,549,562.66
Other profit/loss items falling within the definition of non-recurring gain or loss 14,297,547.73
Less: Affected amount of income tax 37,178,195.47
Affected amount of minority shareholders’ equity (after tax) 210,051,172.20
Total 338,053,301.53 --
Other gain/loss items falling within the definition of non-recurring gain or loss:
□Applicable Not applicable
The Company has 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
Amount
Item Reason
involved (yuan)
Net non-recurring gains and losses attributable to owners of the parent company in 2022 1,328,549,151.24
Net non-recurring gains and losses attributable to owners of the parent company
calculated in accordance with "Interpretative Announcement for Information Disclosure
388,666,262.68
by Public Securities Issuers No. 1 - Non-Recurring Gains and Losses (Revised in 2023)"
for 2022
Difference 939,882,888.56
2. Return on equity and earnings per share (EPS)
Earnings per share (EPS)
Weighted average
Profit within the reporting period Basic earnings per Diluted earnings per
return on net assets
share (RMB per share) share (RMB per share)
Net profit attributable to ordinary shareholders
2.48% 0.12 0.12
of the Company
266 / 269
Full Text of 2023 Annual Report
Net profit attributable to ordinary shareholders
of the Company after deducting non-recurring 1.76% 0.08 0.08
gains and losses
3. 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
□Applicable Not applicable
(2) Differences in net profits and net assets in financial reports disclosed in accordance with foreign
accounting standards and China accounting standards
□Applicable Not applicable
(3) Explain the reasons for the differences in accounting data under domestic and foreign accounting
standards. If the data audited by overseas audit institutions are adjusted for differences, the name of the
overseas institution shall be indicated
4. Others
1. Calculation process of weighted average return on net assets
Amount in the current
Item S/N
period
Net profit attributable to ordinary shareholders of the Company A 1,158,146,248.89
Non-recurring gains and losses B 338,053,301.53
Net profit attributable to ordinary shareholders of the Company after
C=A-B 820,092,947.36
deducting non-recurring gains and losses
Net assets at the beginning of the period attributable to ordinary
D 47,261,560,704.95
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 the
F
end of the reporting period
Decreased net assets attributable to ordinary shareholders of the Company
G1 1,476,357,352.20
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
H1 7
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
G2 326,994,018.61
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
H2 4
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
G3 599,918,992.76
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
H3 3
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
G4 392,812,216.07
resulting from the repurchase or cash dividends
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Decreased net assets attributable to ordinary shareholders of the Company
H4 2
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
G5 728,472,696.77
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
H5 1
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
G6 593,406,887.16
resulting from the repurchase or cash dividends
Decreased net assets attributable to ordinary shareholders of the Company
H6 0
resulting from the repurchase or cash dividends
Translation reserve -63,855,113.14 -63,855,113.14
Increased or decreased number of months from the following
6 6
month of increased net assets to the end of the reporting period
Equity method and other equity changes 36,031,285.75 36,031,285.75
Increased or decreased number of months from the following
6 6
month of increased net assets to the end of the reporting period
Others Effect of changes in equity due to changes in holding proportion
702,183.76 702,183.76
over subsidiaries
Increased or decreased number of months from the following
0 0
month of increased net assets to the end of the reporting period
Impact of using OTC derivatives tools to assist in the
590,642.24 590,642.24
implementation of repurchase of company shares
Increased or decreased number of months from the following
0 0
month of increased net assets to the end of the reporting period
Unused safe production fee 60,677,296.91 60,677,296.91
Decreased net assets attributable to ordinary shareholders of the
6 6
Company resulting from the repurchase or cash dividends
Number of months of the reporting period K 12
L=D+A/2+E×F/K-
Weighted average net assets 46,610,699,593.57
G×H/K±I×J/K
Weighted average return on net assets M=A/L 2.48%
Weighted average return on net assets after deducting non-recurring gains
N=C/L 1.76%
and losses
2. Calculation process of basic earnings per share and diluted earnings per share
(1) Calculation process of basic earnings per share
Amount in the current
Item S/N
period
Net profit attributable to ordinary shareholders of the Company A 1,158,146,248.89
Non-recurring gains and losses B 338,053,301.53
Net profit attributable to ordinary shareholders of the Company after
C=A-B 820,092,947.36
deducting non-recurring gains and losses
Total shares at the beginning of the period D 9,842,382,348.00
Increase in the number of shares due to the share capital transferred from
E
the capital reserve or dividend distribution
Increase in the number of shares due to new shares issued or debt-to-equity
F
swap
Number of months from the following month of increase in the number of
G
shares to the end of the reporting period
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Full Text of 2023 Annual Report
Decrease in the number of shares due to repurchase and other reasons H1 26,678,135.00
Number of months from the following month of increase in the number of
I1 4
shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H2 48,753,036.00
Number of months from the following month of increase in the number of
I2 3
shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H3 34,586,400.00
Number of months from the following month of increase in the number of
I3 2
shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H4 65,343,938.00
Number of months from the following month of increase in the number of
I4 1
shares to the end of the reporting period
Decrease in the number of shares due to repurchase and other reasons H5 57,928,961.00
Number of months from the following month of increase in the number of
I5 0
shares to the end of the reporting period
Number of shares reduced during the reporting period J
Number of months of the reporting period K 12
L=D+E+F×G/K-H×I/K-
Weighted average number of outstanding ordinary shares 9,810,091,649.17
J
Basic earnings per share M=A/L 0.12
Basic earnings per share after deducting non-recurring gains and losses N=C/L 0.08
(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 25, 2024
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