2023 Semi-annual Report
Rongsheng Petrochemical Co., Ltd.
2023 Semi-annual Report
2023 Semi-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 confirm that the contents in
this semi-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
semi-annual report.
All directors have attended the board meeting to consider this semi-annual
report.
The Company describes in detail the risks it may face in Section III of this
report under “X. Risks Faced by the Company and Countermeasures”, which
investors are advised to read.
The company plans to pay no cash dividend, no bonus shares, and no
conversion of capital with provident fund.
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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 ........................................ 10
Section IV Corporate Governance ................................................................. 25
Section V Environmental and Social Responsibility..................................... 26
Section VI Important Matters ........................................................................ 34
Section VII Changes in Shares and Share holders ........................................ 63
Section VIII Preferred Shares ........................................................................ 68
Section IX Bonds .............................................................................................. 69
Section X Financial Reports ........................................................................... 72
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Contents of Documents for Future Reference
(1) The financial statements containing signature and seals of the person in charge of the Company, the person
in charge of the accounting works and the person in charge of the Accounting Firm (Accounting Officer);
(2) Written confirmation from directors, senior management and supervisors of the Company on the 2023
Semi-annual Report;
(3) The originals of all company documents and announcements that are disclosed to the public via media
designated by CSRC during the reporting period;
(4) The place where the above-mentioned documents are maintained: Office of the Board of Directors.
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Definitions
Term Reference Definition
Company, the Company,
Refers to Rongsheng Petrochemical Co., Ltd.
Rongsheng Petrochemical
Zhejiang Rongsheng Holding Group Co., Ltd., controlling shareholder of
Rongsheng Holding Refers to
the Company
Rongtong Logistics Refers to Zhejiang Rongtong Logistics Co., Ltd., a subsidiary of the Company
Zhejiang Rongsheng Venture Capital Co., Ltd., a subsidiary of the
Rongsheng Venture Capital Refers to
Company’s controlling shareholder
ZPC Refers to Zhejiang Petroleum & Chemical Co., Ltd., a subsidiary of the Company
Zhongjin Petrochemical Refers to Ningbo Zhongjin Petrochemical Co., Ltd., a subsidiary of the Company
Yisheng Investment Refers to Dalian Yisheng Investment Co., Ltd, a subsidiary of the Company
Zhejiang Shengyuan Chemical Fiber Co., Ltd., a subsidiary of the
Shengyuan Chemical Fiber Refers to
Company
Rongxiang Chemical Fiber Refers to Rongxiang Chemical Fiber Co., Ltd., a subsidiary of the Company
Hong Kong Sheng Hui Refers to Hong Kong Sheng Hui Co., Ltd., a subsidiary of the Company
Rongsheng Petrochemical Rongsheng Petrochemical (Singapore) Pte. Ltd., a subsidiary of the
Refers to
(Singapore) Company
Yongsheng Technology Refers to Zhejiang Yongsheng Technology Co. Ltd., a subsidiary of the Company
Rongsheng New M aterials Rongsheng (Zhoushan) New M aterials Co., Ltd., a subsidiary of the
Refers to
(Zhoushan) Company
Zhejiang Yisheng Petrochemical Co., Ltd., a joint stock subsidiary of the
Zhejiang Yisheng Refers to Company
Ningbo Hengyi Trading Co., Ltd., a joint stock subsidiary of the
Hengyi Trading Refers to
Company
Xiaoshan Rural Zhejiang Xiaoshan Rural Commercial Bank, a joint stock subsidiary of
Refers to
Commercial Bank the Company
Zhejiang Petroleum Refers to Zhejiang Petroleum Co., Ltd., a joint stock subsidiary of ZPC
Yushan Petrochemical Refers to Zhoushan Yushan Petrochemical Engineering Co., Ltd, a former
subsidiary of ZPC
Jintang Logistics Refers to Jintang Logistics Co., Ltd, a subsidiary of ZPC
Zhejiang Dingsheng Petrochemical Engineering Co., Ltd, a joint stock
Dingsheng Petrochemical Refers to subsidiary of ZPC
Derong Chemicals Refers to Zhejiang Derong Chemicals Co. Ltd., a joint stock subsidiary of ZPC
ENN (Zhoushan) Refers to ZPC-ENN (Zhoushan) Gas Co., Ltd., a joint stock subsidiary of ZPC
Zhejiang Yisheng New M aterials Co., Ltd., a holding subsidiary of
Yisheng New M aterials Refers to
Zhongjin Petrochemical
Ningbo Niluoshan New Energy Co., Ltd., a subsidiary of Zhongjin
Niluoshan New Energy Refers to
Petrochemical
Yisheng Dahua Petrochemical Co., Ltd., a subsidiary of Yisheng
Yisheng Dahua Refers to
Investment
Hainan Yisheng Petrochemical Co., Ltd., a joint stock subsidiary of
Hainan Yisheng Refers to Yisheng Investment
Hong Kong Yisheng Refers to Hong Kong Yisheng Co., Ltd., a subsidiary of Yisheng Dahua
Dalian Rongxincheng Refers to Dalian Rongxincheng Trading Co., Ltd., a subsidiary of Yisheng Dahua
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Ningbo Yisheng Chemical Co., Ltd, a subsidiary of Hong Kong Sheng
Yisheng Chemical Refers to
Hui
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 RM B 0.00, RM B 10,000.00
Reporting period Refers to January 1, 2023 to June 30, 2023
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Section II Company Profile and Key Financial Indicators
I. Company Profile
Rongsheng
S tock abbreviation S tock code 002493
Petrochemical
Abbreviation before change (if
None
any)
Listed on Shenzhen Stock Exchange
Company name in Chinese 荣盛石化股份有限公司
Company abbreviation in Chinese
荣盛石化
(if any)
Company name in the foreign
RONGSHENG PETROCHEM ICAL CO., LTD.
language (if any)
Company abbreviation in the
RSPC
foreign language (if any)
Legal representative of the
Li Shuirong
Company
II. Contact Information
S ecretary 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. Other Information
1. Contact information of the Company
Whether the Company’s registered address, office address and its postal code, company website, E-mail address,
etc. have changed during the reporting period
The Company’s registered address, office address and its postal code, company website, E-mail address, etc. have
not changed during the reporting period, for details, please refer to the 2022 Annual Report.
2. Information disclosure and archiving place
Whether the information disclosure and archiving place has changed during the reporting period
The name and address of the stock exchange website and media where the Company discloses its semi-annual report
and the place where the Company’s semi-annual report is filed have not changed during the reporting period, for
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details, please refer to the 2022 Annual Report.
3. Other relevant information
Whether other relevant information has changed during the reporting period
□Applicable Not applicable
IV. 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/decreas
e in the current
Current reporting S ame period last year reporting period
period over the same
period last year
Before adjustment After adjustment After adjustment
Operating income (RM B) 154,525,283,752.29 147,627,593,292.44 147,627,593,292.44 4.67%
Net profit attributable to shareholders
-1,126,633,616.55 5,366,591,400.34 5,366,884,515.49 -120.99%
of the listed company (RM B)
Net profit attributable to shareholders
of the listed company net of non- -1,388,043,242.84 5,245,936,331.24 5,246,229,446.40 -126.46%
recurring gain and loss (RM B)
Net cash flow from operating activities
-2,278,779,430.90 31,079,069,859.60 31,079,069,859.60 -107.33%
(RM B)
Basic earnings per share (RM B per
-0.11 0.53 0.53 -120.75%
share)
Diluted earnings per share (RM B per
-0.11 0.53 0.53 -120.75%
share)
Weighted average return on net assets -2.42% 10.60% 10.41% -12.83%
Increase/decreas
e at the end of
End of the End of last year the reporting
reporting period period over the
end of last year
Before adjustment After adjustment After adjustment
Total assets (RM B) 349,187,246,348.77 362,587,416,687.68 362,620,099,117.75 -3.70%
Net assets attributable to shareholders
44,835,523,194.51 47,260,382,901.11 47,261,683,528.65 -5.13%
of the listed company (RM B)
Reasons for changes in accounting policies and correction of accounting errors
Effective January 1, 2023, the Company implemented the provisions of ASBE Interpretation No. 16,
“Accounting for Deferred Taxes on Assets and Liabilities Arising from Individual Transactions Not Subject to the
Initial Recognition Exemption” issued by the Ministry of Finance of the People’s Republic of China, and adjusted
individual transactions subject to the provisions of ASBE Interpretation No. 16 for those transactions occurring
between the beginning of the earliest period of the financial statements in which the provisions of ASBE
Interpretation No. 16 were first implemented and the date of the first implementation of ASBE Interpretation No.
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16. For lease liabilities and right-of-use assets recognized at the beginning of the earliest period for the presentation
of financial statements in which the provisions were first implemented that gave rise to taxable temporary
differences and deductible temporary differences as a result of a single transaction to which the provisions apply,
the cumulative effect was adjusted to retained earnings at the beginning of the earliest period for which the financial
statements were presented, as well as to other relevant financial statement items in accordance with the provisions
of ASBE No. 18, “Accounting for Income Taxes”. These changes in accounting policy affected the Company’s
balance sheet items at the end of the previous year: deferred tax assets affected are RMB32,682,430.07, deferred
tax liabilities affected are RMB31,381,802.53, undistributed earnings affected are RMB1,300,627.54; and the
income statement items of January-June 2022: income tax expenses affected are RMB293,115.15.
V. 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
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.
2. Differences in net profits and net assets in financial reports disclosed in accordance with foreign
accounting standards and China’s accounting standards
In the reporting period of the Company, there is no difference in the net profits and net assets disclosed in the
financial report under foreign accounting standards and China’s accounting standards.
VI. Items and Amounts of Non-recurring Gain and Loss
Unit: RM B
Item Amount
Gains or losses on disposal of non-current assets (including the part written-off with provision
9,776,120.31
for asset impairment accrued)
Government grants recognized in current gain and loss (excluding grants entitled to in quota or
ration according to certain criteria under national policies and which are closely relevant to the 100,951,165.76
Company's normal business operations)
Fund possession cost included in current gain and loss charged to non-financial enterprises 99,037.73
Except for effective hedging business related to the normal business operations of the Company,
changes in gains and losses of fair value arising from trading financial assets, trading financial
320,428,570.35
liabilities, investment income obtained from disposal of trading financial assets, trading financial
liabilities and available-for-sale financial assets
Other non-operating revenues and expenditures except for the aforementioned items 1,189,521.25
Other profit/loss items falling within the definition of non-recurring gain or loss 3,709,266.29
Less: Affected amount of income tax 23,818,799.21
Affected amount of minority shareholders' equity (after tax) 150,925,256.19
Total 261,409,626.29
Other gain/loss items falling within the definition of non-recurring gain or loss:
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
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Announcement No. 1 on Information Disclosure of Companies Publicly Issuing Securities-Non-recurring Gains and
Losses are defined as recurring gains and losses.
The Company has no 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.
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Section III Management Discussion and Analysis
I. Main Businesses of the Company during the Reporting Period
(I) Industry of the company during the reporting period
In the first half of 2023, the disruptions to the global economy caused by the Federal Reserve’s continued
interest rate hike to curb high inflation and the intensification of the competition between major powers have made
the international political and economic environment increasingly complex and the competition further intensified.
The world political and economic situation is complicated, and the foundation for sustained recovery and
development of the domestic economy is still shaky. The Chinese government has effectively responded to various
risks and challenges, actively resolved difficulties, and removed bottlenecks and blockages. In the first half of this
year, China’s economic recovery has gradually improved and high-quality development has made steady progress.
Economic growth has shifted from being driven mainly by investment and exports last year to being driven mainly
by consumption and investment this year; and from being driven mainly by industry last year to being driven by
both the service sector and industry.
In the first half of the year, the petrochemical industry encountered new difficulties such as the simultaneous
decline in raw materials and product prices, the weaker-than-expected recovery after the pandemic, and the sluggish
demand in the international and domestic markets. According to the data of the National Bureau of Statistics, the
operating income of the petrochemical industry in the first half of the year was 7.6 trillion yuan, down 4.4% year -
on-year; among them, three major sectors: oil and gas extraction was 674.96 billion yuan, down 6.2% year-on-year,
refining sector was 2.5 trillion yuan, up 1.3% year-on-year, and chemical sector was 4.27 trillion yuan, down 7.7%
year-on-year. The total profit of the whole industry was 431.09 billion yuan, down 41.3% year-on-year; among them,
three major sectors: oil and gas extraction were 190.69 billion yuan, down 12.6% year-on-year, refining sector was
27.4 billion yuan, down 70.2% year-on-year, chemical sector was 205.08 billion yuan, down 51.1% year-on-year.
The total import and export volume of the whole industry was 476.36 billion US dollars, down 7.6% year -on-year;
among them, exports were 162.06 billion US dollars, down 5.6% year-on-year, imports were 314.3 billion US
dollars, down 8.7% year-on-year, and the trade deficit was 152.23 billion US dollars, down 11.7% year-on-year.
(II) Main businesses of the company during the reporting period
1. Main products
The Company operates the 40 million tonne refining and chemical integration project of Zhejiang Petroleum
& Chemical Co., Ltd., the world’s largest single-unit refinery. It is an important producer of polyester, new energy
materials, engineering plastics, and high value-added polyolefins in China and Asia, with the world's largest
production capacity of chemicals such as PTA and PX. At the same time, it ranks among the world’s top in
production capacity of multiple products such as polyethylene, polypropylene, PET, EVA, ABS, etc. In 2023, it was
rated as the 7th most valuable chemical brand in the world by the renowned brand evaluation agency Brand Finance
in the “Chemicals 25 2023” report.
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Note: products marked by dotted line / dotted box are products under the plan.
During the reporting period, the Company’s main business includes the R&D, production and sales of various
chemicals, oil and polyester products. The products are rich in types and complete in specifications, covering many
fields such as new energy, new materials, organic chemical, synthetic fiber, synthetic resin, synthetic rubber and oil,
mainly including more than 30 categories of products such as olefins and their downstream products, aromatics and
their downstream products, oil products, etc. The Company has basically realized “from a drop of oil to everything
in the world”, and is constantly improving the new energy and new material industry chain on the basis of the
existing global super-large integrated refining base and complete upstream and downstream supporting facilities.
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(III) Key performance drivers
Against the backdrop of ever-changing internal and external environments, the Company has not only
effectively guaranteed normal and orderly business operation, but also fully completed the construction of major
projects, continuing to maintain a strong development momentum.
1. Putting newly constructed units into operation to contribute more to the performance
Relying on the advantages of ZPC’s large refining and chemical platform, the Company’s planned high value-
added products have been put into production. In the first half of 2023, ZPC has successfully put into operation an
annual output of 400,000 tons of ABS unit, an annual output of 60,000 tons of solution polymerized styrene
butadiene rubber unit and an annual output of 100,000 tons of butadiene rare earth rubber/70,000 tons of nickel
butadiene rubber unit, and successfully produced qualified products. In the first half of the year, Yongsheng
Technology’s annual output of 250,000 tons of functional polyester film expansion project has also been put into
operation. The operation of these new units can not only improve the extension of the industrial chain to promote
the Company’s products to reduce costs and increase efficiency, but also help boost the Company’s high-quality
development.
2. Focusing constantly on safe production to keep operational quality and efficiency stable
The Company not only focuses on economic benefits, but also on safe production. We adhere to the principle
that “safety is the foundation of production and business”, strengthen the safe production accountability system for
all employees, promote all subsidiaries and production units to build and strengthen a solid safe production
organizational structure, and assign safe production responsibilities at all levels. We also adopt a combination of
rewards and penalties to encourage employees to strictly assure their primary responsibility in their daily work to
ensure safe production.
3. Balancing the linkage between production and sales to improve operation perf ormance
The Company firmly adheres to the market-oriented, production-based system, holds weekly production and
operation meetings, and strives to achieve “same frequency resonance” in production, supply and sales to improve
operating efficiency. The Company’s business team keeps a close eye on the market, controls the rhythm of
production and sales and adheres to the daily production and sales balance to ensure weekly balance, weekly
production and sales balance to ensure monthly balance, constantly improving product quality and brand value.
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4. Perfecting the internal management to effectively manage cost risks
The Company continues to strengthen internal management innovation, improve the working mechanism of
key nodes such as industrial chain research, supplier and customer management, plan management, and risk control.
In terms of main raw material procurement, the Company adopts the operation mode of “long-term contract + spot”
and “futures hedging”, which not only guarantees the production materials, but also seizes the opportunity benefits,
continuously optimizing the raw material cost. In the procurement of auxiliary materials, the Company adheres to
the combination of risk control and cost priority, and adopts internal and external pricing to effectively control risks
and reduce costs.
II. 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:
(I) Complete industrial synergistic advantage s
After years of development and improvement, the Company has seized the opportunity of industrial adjustment,
achieved rapid growth, and formed the development strategy of “from a drop of oil to everything in the world”.
Both the extension of the industrial chain and the coordinating upstream and downstream sectors are helpful for the
Company to effectively reduce business costs. While ensuring the supply of raw materials, they can also ensure the
reliability and stability of product quality, and also improve the Company’s sustainable profitability and risk
resistance.
The interconnection between Zhoushan Green Petrochemical Base and Ningbo Petrochemical Base can realize
the coordinated development of Ningbo and Zhoushan bases. Pipeline transportation has greatly reduced the risk
and cost of water and land transportation. A large number of light hydrocarbon raw materials produced by Ningbo
Petrochemical Base are transported to Zhoushan Green Petrochemical Base through pipelines, which can be used
as high-quality ethylene raw materials. The surplus oil of Zhoushan Green Petrochemical Base can also be
transported to Ningbo Petrochemical Base as high-quality raw materials for the production of aromatics.
The construction of the ZPC Project has supporting facilities that can meet the supply and demand of crude oil
in the two phases of the project. The total storage capacity of Mamu crude oil depot and Yushan Island crude 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.
(II) Remarkable location competition advantage s
The Company's production bases are located along the eastern coastline of China, including the “Circum-Bohai
Sea Economic Zone” in Dalian City, Liaoning Province; the “Yangtze River Delta Economic Circle” in Ningbo
City, Zhejiang Province; and the “Maritime Silk Road” in Haikou City, Hainan Province. Each production base of
the Company is adjacent to high-quality ports, connected with canals and equipped with complete wharf facilities.
The main raw materials and other auxiliary raw materials required for production can be unloaded and stored at the
chemical material wharf built or rented by the Company, which has provided convenient transportation of bulk raw
materials and inventory adjustment. The ZPC project is located in the major consumption area of oil and chemical
products, consuming 40% of domestic petrochemical and chemical products, and the area’s production capacity of
plastics and chemical fiber accounts for 90% of the country. Refined oil has many sales channels and enjoys strong
policy support and obvious competitive advantages. ZPC has taken the lead in other private enterprises and
cooperated with Zhejiang Provincial Energy Group to establish Zhejiang Petroleum, taking the lead in the layout of
the refined oil retail business. ZPC plans to deploy 700 gas stations in Zhejiang Province. At present, more than 200
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gas stations have been put into operation. The Ministry of Commerce officially approved granting ZPC the export
qualification of non-state-owned trade refined oil. As the first private refining and petrochemical enterprise to obtain
export permission, ZPC has taken 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.
(III) Excellent strategic layout advantages
The management of the Company has a keen sense of investment, accurate timing for project operation and
excellent investment and financing capacity. The Company started its business in the polyester chemical fiber sector
and experienced many years of development. With the full-scale operation of the 40 million tons/year refining and
chemical integration project of its subsidiary in early 2022, ZPC has become the largest single refinery in the world.
With the lowest product oil yield and the largest PX production capacity, the project has become the largest PX
production base in the world. The project continues to maximize the production and recover light components as
raw materials for the ethylene cracking unit, and has made a one-time differentiated layout of downstream
supporting chemical units. Due to the mutual provision of materials and main devices as well as the interconnected
utilities, the maintenance of a single device does not affect the production load of the whole unit, and thus can
achieve the goal of maintenance at the staggered time and long-term continuous operation of the plant. The advanced
heavy oil processing technology adopted by the Company has stronger adaptability to raw materials and a higher
conversion rate of reaction, taking the lead in terms of process, scale, and supporting facilities.
Relying on the 40 million tons/year refining and chemical integration project of ZPC, the Company has
accelerated the layout of downstream new chemical materials, aimed at the field of new energy and high-end
materials, and has deployed a number of new energy and new material products such as EVA, DMC, PC and ABS,
continuously enriching its product chain. With the steady progress of new projects, the Company's production
capacity of new energy materials, renewable plastics, special synthetic materials, and high-end synthetic materials
will be expanded in an orderly manner, and the transformation of new materials will be gradually accelerated.
(IV) Strong R&D and innovation advantages
We uphold 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
enhanced 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 R&D
strength and rich process operation experience accumulated during long-term production management. The
Company has selected a new technical route for Zhongjin’s petrochemical project, using fuel oil (cheaper than
naphtha) to produce some aromatic products. In doing so, the Company has not only eased the shortage of global
naphtha supply but also greatly saved raw material procurement costs by introducing the concept of “circular
economy”. Hydrogen, the by-product, was used to process fuel oil into naphtha, laying the foundation for the
promotion of the ZPC Project. By building projects with PTA patented technology, the Company has effectively
reduced the investment cost and operation cost per unit capacity, enhanced the competitiveness of products, and
accumulated rich experience in the domestic fabrication of complete sets of technology and equipment. The
Company has summarized the successful application of large-scale melt direct spinning polyester and spinning
technology in the early projects for further development and improvement in the later projects.
(V) Rich human resources advantages
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The Company’s core management team has rich professional experienc e and keen insight. Made up of efficient
doers, the team has a deep understanding of the petrochemical and chemical fiber industries and rich experience in
development strategy, new business planning, resource integration, and talent training. Focusing on the construction
of corporate culture, the Company has formed a 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. In addition, the Company combines the employee examination w ith 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.
(VI) Efficient operation and management advantages
The Company adheres to system construction, integrates digitization, intelligence, standardization, process,
and regulation into operations; actively strengthens IT construction; comprehensively integrates business links such
as sourcing, production, inventory, and sales; and constantly improves the rapid response ability. The Company has
established a complete set of effective management systems in combination with actual situations, defined post
responsibilities and work flow, and effectively reduced the operation costs through fine management. Through years
of efforts, the Company’s information construction, performance appraisal, credit management and other systems
are at the leading level in the industry. At the same time, the Company has further improved its cohesiveness and
influence through brand and cultural construction and won honors. The Company has won the “7th Most Valuable
Brands in Global Chemical Industry in 2023”, “The 16th among Top 50 Global Chemical Enterprises in 2023”,
“Billion Dollar Club of Global Chemical Companies among Top 100 Global Chemical Enterprises in the World”,
“Top 100 Comprehensive Health Index of China Listed Companies in 2021”, “Top 10 List of Sales Revenue of
Petroleum and Chemical Enterprises in 2022”, “Advanced Standardization List in 2021”, “Top 100 Value Listed
Companies on Main Board”, “Outstanding Management Team of Listed Companies in China”, “Best Practice
Award of Directors of Listed Companies in 2022”, “2022 Top 100 Enterprises in Zhejiang Province, No.1 in Top
100 Manufacturing Enterprises in Zhejiang Province”, “2022 Top 100 Private Enterprises in Zhejiang Province”
and other honors.
III. Analysis of Main Business
Overview
Refer to relevant contents in “I. Main Businesses of the Company during the Reporting Period”.
Year-on-year changes in key financial data
Unit: RM B
Year-on-
Current reporting S ame period last year
Reasons for change
period year increase
(decrease)
Operating revenue 154,525,283,752.29 147,627,593,292.44 4.67%
Operating cost 139,757,633,719.45 122,775,638,618.00 13.83%
Selling expenses 100,549,410.04 101,947,202.32 -1.37%
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Administrative
404,763,431.53 413,432,771.89 -2.10%
expenses
M ainly due to the increase in interest
Financial
4,070,814,062.56 2,469,671,208.89 64.83% expenses of the Company and subsidiaries
expenses
during the period
M ainly due to the decrease in income tax
Income tax expense as a result of the decrease in total
-752,468,740.63 2,374,223,484.26 -131.69%
expenses profit compared with the same period last
year
M ainly due to increased investment in R&D
R&D expenses 3,293,231,534.62 2,010,793,043.62 63.78%
expenses of subsidiary ZPC
Net cash flow M ainly due to the increase of cash payment
from operating -2,278,779,430.90 31,079,069,859.60 -107.33% for raw materials purchased by the Company
activities and its subsidiary ZPC during the period
Net cash flow M ainly due to the subsidiary ZPC investment
from investment -14,829,820,455.43 -19,631,641,960.18 -24.46% cash payment in the current period is less
activities than the same period of the previous year
Net cash flow M ainly due to the subsidiary ZPC new bank
from financing 15,356,373,078.79 -8,369,157,005.17 -283.49% borrowings increased year-on-year during the
activities period
Net increase in
M ainly due to increase in cash paid for
cash and cash -2,094,250,081.76 2,924,364,764.70 -171.61%
operating activities during the period
equivalents
Significant changes in the composition of the company’s profits or sources of profits during the reporting period
□Applicable Not applicable
No significant changes in the composition of the company’s profits or sources of profits during the reporting period.
The composition of operating revenue
Unit: RM B
Current reporting period S ame period last year Year-on-
year
Proportion in Proportion in increase
Amount Amount
operating income operating income (decrease)
Total operating
154,525,283,752.29 100% 147,627,593,292.44 100% 4.67%
income
By industry
Petrochemical
140,099,506,826.51 90.66% 128,869,677,600.33 87.29% 3.37%
industry
Polyester
chemical fiber 7,346,436,217.27 4.76% 7,034,942,127.69 4.77% -0.01%
industry
Trade and
7,079,340,708.51 4.58% 11,722,973,564.42 7.94% -3.36%
others
By product
Oil refining
55,062,107,428.82 35.63% 46,667,559,685.68 31.61% 4.02%
products
Chemical
58,838,530,475.22 38.08% 57,275,666,363.94 38.80% -0.72%
products
PTA 26,198,868,922.47 16.95% 24,926,451,550.71 16.88% 0.07%
Polyester
chemical fiber 7,346,436,217.27 4.76% 7,034,942,127.69 4.77% -0.01%
film
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Trade and
7,079,340,708.51 4.58% 11,722,973,564.42 7.94% -3.36%
others
By region
China 138,025,327,277.01 89.32% 122,754,394,065.66 83.15% 6.17%
Overseas 16,499,956,475.28 10.68% 24,873,199,226.78 16.85% -6.17%
Industries, products or regions that account for more than 10% of the Company’s operating revenue or operating
profit
Unit: RM B
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 cost gross profit
revenue
margin
By industry
Petrochemical
140,099,506,826.51 125,906,847,107.64 10.13% 8.71% 20.05% -8.48%
industry
Polyester
chemical fiber 7,346,436,217.27 7,103,615,870.05 3.31% 4.43% 6.03% -1.46%
industry
Trade and
7,079,340,708.51 6,747,170,741.76 4.69% -39.61% -39.73% 0.18%
others
By product
Oil refining
55,062,107,428.82 45,444,345,713.79 17.47% 17.99% 35.51% -10.67%
products
Chemical
58,838,530,475.22 54,312,061,215.61 7.69% 2.73% 15.74% -10.38%
products
PTA 26,198,868,922.47 26,150,440,178.24 0.18% 5.10% 7.08% -1.84%
Polyester
chemical fiber 7,346,436,217.27 7,103,615,870.05 3.31% 4.43% 6.03% -1.46%
film
Trade and
7,079,340,708.51 6,747,170,741.76 4.69% -39.61% -39.73% 0.18%
others
By region
China 138,025,327,277.01 123,547,954,391.45 10.49% 12.44% 25.52% -9.32%
Overseas 16,499,956,475.28 16,209,679,328.00 1.76% -33.66% -33.41% -0.37%
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 period
□Applicable Not applicable
IⅤ. Non-core Business Analysis
Unit: RM B
Proportion in total Whether it is
Amount Cause description
profit sustainable
Investment income 178,577,881.79 -6.26% M ainly due to investments in futures No
and investment income from
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associated enterprises
Profit (loss) from fair
310,625,655.12 -10.88% M ainly due to investments in futures No
value change
M ainly due to provision for decline in
Asset impairment -64,830,582.66 2.27% No
value of inventories
Non-operating income 2,038,960.44 -0.07% M ainly compensation income No
Non-operating M ainly due to sporadic non-recurring
849,439.19 -0.03% No
expenses losses
Income from asset M ainly the income from disposal of
-84,509.13 0.00% No
disposal fixed assets
Credit impairment M ainly due to provision for bad debts
-39,633,196.86 1.39% No
loss of accounts receivable
Other income 104,660,432.05 -3.67% M ainly government subsidies No
V. Analysis of Assets and Liabilities
1. Significant changes in asset composition
Unit: RM B
End of the reporting period End of last year Increase
(decrease)
Proportion in Proportion in of
Amount Amount
total assets total assets proportion
M onetary fund 15,188,219,124.43 4.35% 18,238,774,380.21 5.03% -0.68%
Accounts receivable 3,363,526,129.84 0.96% 7,128,011,047.03 1.97% -1.01%
Stock 45,236,557,593.11 12.95% 60,689,909,793.94 16.74% -3.79%
Investment real estate 10,531,297.60 0.003% 10,667,020.60 0.00% 0.00%
Long-term equity
8,891,042,895.47 2.55% 8,733,329,806.35 2.41% 0.14%
investment
Fixed assets 215,083,404,817.73 61.60% 222,161,110,736.65 61.27% 0.33%
Construction in progress 32,973,381,339.08 9.44% 26,135,157,629.45 7.21% 2.23%
Right-of-use assets 212,408,093.54 0.06% 225,606,768.34 0.06% 0.00%
Short term loan 38,995,934,539.57 11.17% 26,369,552,400.50 7.27% 3.90%
Contract liabilities 3,989,090,507.85 1.14% 3,734,262,391.81 1.03% 0.11%
Long-term loan 134,520,212,536.23 38.52% 130,962,386,969.29 36.12% 2.40%
Lease liabilities 204,564,668.81 0.06% 213,400,396.45 0.06% 0.00%
Non-current liabilities due
22,216,340,629.61 6.36% 20,461,387,778.93 5.64% 0.72%
within one year
2. Major foreign assets
□Applicable Not applicable
3. Assets and liabilities measured at fair value
Unit: RM B
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Profit
and loss Accumulat Impair Purcha
S ales
from ed fair ment se
Amount at the amount Other Amount at the
changes value accrue amount
Item beginning of in the chang end of the
in fair changes d in the in the
the period current es period
value for recognized current current
period
the in equity period period
period
Financial assets
Including:
derivative 188,283,362.49 387,219,170.37
financial assets
Total above 188,283,362.49 387,219,170.37
Financial
588,769,711.55 549,233,668.87
liabilities
Whether there were significant changes in the measurement attributes of the Company’s major assets during the
reporting period
□Yes No
4. Restrictions on rights of assets at the end of the reporting period
Carrying value at the end of
Item Reasons for restrictions
the period
See note to monetary funds in the notes to the
M onetary fund 1,823,189,402.42
financial statements for details
Pledged for issuing bank acceptance bills as
Accounts receivable financing 11,038,301.85
collateral
Fixed assets 213,092,536,178.09 Bank loan mortgage, letter of credit mortgage
Construction in progress 25,219,264,761.29 Bank loan mortgage
Intangible assets 4,893,798,769.47 Bank loan mortgage
Total 245,039,827,413.12
VI. Analysis of Investment
1. Overall
Investment amount in the reporting Investment amount in the same period
Variations
period (RMB) of last year (RMB)
8,891,042,895.47 8,211,165,997.21 8.28%
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
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4. Investment in financial assets
(1) S ecurities investment
There was no investment in securities during the reporting period.
(2) Investment in derivatives
The Company had no derivatives investment during the reporting period.
5. Use of the raised funds
The Company had no use of the raised funds during the reporting period.
VII. Sales of Major Assets and Equities
1. Sales of major assets
The Company did not sell any major assets during the reporting period.
2. Sales of major equities
□Applicable Not applicable
VIII. Analysis of Main Holding and Joint-stock Companies
Main subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit
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Unit：RM B 10,000
Company Company Operating Operating
Main business Registered capital Total assets Net assets Net profit
name type revenue profit
Production, sales, storage and transportation of
ZPC Subsidiary 5,580,000 27,526,076.93 9,019,919.96 12,077,630.30 -249,375.02 -175,152.74
petroleum products etc.
Shengyuan
Production and sales of polyester chips and
Chemical Subsidiary 200,000 900,953.36 217,024.68 205,789.85 240.06 231.65
polyester filaments
Fiber
Zhongjin
Production and sales of chemical products and
Petrochemic Subsidiary 600,000 3,994,362.13 812,757.56 2,324,764.77 -18,209.59 -19,537.08
petroleum products
al
Yisheng Project investment, domestic trade, import and
Subsidiary 201,800 1,691,608.61 769,388.77 1,413,522.77 5,904.47 8,684.11
Investment export of goods
Yisheng Production and sales of PTA and polyester bottle
Subsidiary 245,645 1,534,612.31 612,554.90 1,413,522.77 -10,093.76 -7,306.72
Dahua chips
Yongsheng New material technology R&D, plastic product
Subsidiary 16,000 249,093.57 68,599.22 111,389.35 -4,591.55 -4,599.22
Technology manufacturing, synthetic fibre manufacturing
Yisheng
New Subsidiary Production and sales of PTA 300,000 1,229,722.54 265,371.77 1,791,328.63 -20,745.66 -20,659.06
M aterials
Zhejiang Joint stock
Production and sales of PTA USD 51,444.71 2,011,830.71 898,463.53 1,269,371.13 6,426.42 2,515.12
Yisheng company
Hainan Joint stock Production and sales of PTA and polyester bottle 458,000 1,433,916.33 663,792.30 1,010,770.47 36,907.79 31,499.72
Yisheng company chips
Acquisition and disposal of subsidiaries during the reporting period
Acquisition and disposal methods during the reporting Impact on overall production, operation and
Company name period performance
Zhoushan ZPC Sales Co., Ltd. Newly established No significant impact
Zhoushan Yushan Petrochemical Engineering Co., Ltd Sold No significant impact
Description of major holding companies and joint-stock companies
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(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 RMB55.8 billion. As
of June 2023, the company had total assets of RMB275,260,770,000 and net assets of RMB90,199,200,000; from
January to June 2023, the company realized operating revenues of RMB120,776,300,000 and net profits of RMB-
1,751,530,000.
(2) Ningbo Zhongjin Petrochemical Co., Ltd.
The business scope of Ningbo Zhongjin Petrochemical Co., Ltd. includes the storage of chemical products;
wholesale and retail of chemical products and petroleum products (except hazardous chemicals). With Li Shuirong
as its legal representative, Zhongjin Petrochemical, a wholly-owned subsidiary of the Company, owns a registered
capital of RMB6,000,000,000. As of June 2023, the company had total assets of RMB39,943,620,000 and net assets
of RMB8,127,580,000; from January to June 2023, the company realized operating revenues of
RMB23,247,650,000 and net profit of RMB-195,370,000.
(3) Dalian Yisheng Investment Co., Ltd.
Dalian Yisheng Investment Co., Ltd. is mainly engaged in industrial investment. With Li Shuirong as its legal
representative, Yisheng Investment owns registered capital of RMB2,018 million. The Company holds 70% of its
equity. As of June 2023, the company had total assets of RMB16,916,090,000 and net assets of RMB7,693,890,000;
from January to June 2023, the company realized operating revenues of RMB14,135,230,000 and net profits of
RMB86,840,000.
(4) Yisheng Dahua Petrochemical Co., Ltd.
Yisheng Dahua Petrochemical Co., Ltd. is mainly engaged in the production and sales of PTA. With Li
Shuirong as its legal representative, Yisheng Dahua Petrochemical owns a registered capital of RMB2,456,450,000.
As of June 2023, the company had total assets of RMB15,346,120,000 and net assets of RMB6,125,550,000; from
January to June 2023, the company realized operating income of RMB14,135,230,000 and net profit of RMB-
73,070,000.
(5) Zhejiang Yisheng New Materials Co., Ltd.
Zhejiang Yisheng New Materials Co., Ltd. is mainly engaged in the production and sales of PTA. The legal
representative is Xu Baoyue, the registered capital is RMB3 billion, and Ningbo Zhongjin Petrochemical Co., Ltd.
holds 51% of its equity. As of June 2023, the company had total assets of RMB12,297,230,000 and net assets of
RMB2,653,720,000; from January to June 2023, the company realized operating income of RMB17,913,290,000
and net profit of RMB-206,590,000.
(6) Hainan Yisheng Petrochemical Co., Ltd.
Hainan Yisheng Petrochemical Co., Ltd. is a joint-stock subsidiary of Yisheng Investment, the Company’s
holding subsidiary. The Company’s main business includes the production and sales of PTA and polyester bottle
chips, and import and export business. With Fang Xianshui as its legal representative, Yisheng Petrochemical owns
a registered capital of RMB4,580,000,000. Yisheng Investment holds 50% of its equity. As of June 2023, the
company had total assets of RMB14,339,160,000 and net assets of RMB6,637,920,000; from January to June 2023,
the company realized operating income of RMB10,107,700,000 and net profit of RMB315,000,000.
(7) Zhejiang Yisheng Petrochemical Co., Ltd.
Zhejiang Yisheng Petrochemical Co., Ltd. is mainly engaged in PTA production and sales. Zhejiang Yisheng
Petrochemical Co., Ltd. is mainly engaged in PTA production and sales. With Fang Xianshui as its legal
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representative, Yisheng Petrochemical owns a registered capital of USD 514,447,100. The Company holds 30% of
its equity. As of June 2023, the company had total assets of RMB200,118,310,000 and net assets of
RMB8,984,640,000; from January to June 2023, the company realized operating revenues of RMB12,693,710,000
and net profits of RMB25,150,000.
(8) Zhejiang Shengyuan Chemical Fiber Co., Ltd.
Zhejiang Shengyuan Chemical Fiber Co., Ltd. is the implementing body of the Company’s multi-functional
fibre technical transformation project. Its business scope covers the manufacturing and processing of polyester and
spandex (only for preparation) and the distribution of light textile raw materials and products. With Li Shuirong as
its legal representative, Shengyuan Chemical Fiber, a wholly-owned subsidiary of the Company, owns a registered
capital of RMB2,000,000,000. As of June 2023, the company had total assets of RMB9,009,530,000 and net assets
of RMB2,170,250,000; from January to June 2023, the company realized operating revenues of RMB2,057,900,000
and net profits of RMB2,320,000.
(9) Zhejiang Yongsheng Technology Co., Ltd.
Zhejiang Yongsheng Technology Co., Ltd. is mainly engaged in the production and sales of polyester products.
With Xu Yongming as its legal representative, Yongsheng Technology owns a registered capital of RMB160 million.
The Company holds 70% of its equity. As of June 2023, the company had total assets of RMB2,490,940,000 and
net assets of RMB685,990,000; from January to June 2023, the company realized operating income of
RMB1,113,890,000 and net profit of RMB-45,990,000.
IX. Structured Entities Controlled by the Company
□Applicable Not applicable
X. Risks Faced by the Company and Countermeasures
1. Risk from price fluctuation of raw materials
As a member of the crude oil industrial chain, the Company’s main cost of production is the cost of upstream
raw materials. Therefore, the fluctuation of crude oil prices will result in the price fluctuation of products in the
industry chain, resulting in the fluctuation of corporate benefits and an increase in sales risk. Our crude oil team in
Singapore has rich experience in procurement, trade, hedging, and logistics. With the help of the marketing
department, we will focus on market changes, adhere to the combination of strategic procurement and preferential
procurement, and effectively reduce procurement costs. We also strengthen sales management and arrange flexible
long-term and short-term contracts to reduce the adverse impact of raw material fluctuations.
2. Risk of economic fluctuation
With chemicals, oil products, and polyester products as main products, our business covers the petrochemical
and chemical fiber manufacturing industries, which go hand in hand with the national economy and people’s
livelihoods. Therefore, the prosperity of the national economy is tied to our industrial development. In recent years,
the slowdown in demand growth from downstream industries has affected the petrochemical industry to a certain
extent. The Company will pay close attention to the economic situation and market trends, and take practical and
effective measures to minimize the risks posed by macroeconomic fluctuations.
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3. Risk of exchange rate
In the future, the market-oriented reform of the exchange rate will become one of the important factors affecting
investors’ asset allocation. If the USD further strengthens in the interest rate increase cycle, it may lead to greater
pressure on the depreciation of 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 our 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.
4. Risk of market competition
With the rapid development of the synthetic fiber industry chain in recent years, a certain degree of
overcapacity has emerged in the petrochemical industry. The further launch of new capacity will intensify market
competition and negatively affect the performance of our relevant products. The Company will accelerate the
continuous expansion of the downstream deep processing fields, further strengthen our anti-risk capabilities,
improve the level of product differentiation and competitiveness, strengthen the development of the market and
enhance our overall profitability.
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2023 Semi-annual Report
Section IV Corporate Governance
I. 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
Disclosure
S ession Type attendanc Convening date Meeting resolution
date
e ratio
http://www.cninfo.com.cn/new/discl
The First
Extraordinary osure/detail?plate=szse&orgId=9900
Extraordinary
General 77.78% April 13, 2023 April 14, 2023 015502&stockCode=002493&annou
General M eeting
M eeting ncementId=1216403827&announce
in 2023
mentTime=2023-04-14
http://www.cninfo.com.cn/new/discl
Annual osure/detail?plate=szse&orgId=9900
2022 Annual
General 79.78% M ay 16, 2023 M ay 17, 2023 015502&stockCode=002493&annou
General M eeting
M eeting ncementId=1216829613&announce
mentTime=2023-05-17
2. Preferred shareholders with voting rights recovered requested to convene an extraordinary general
meeting of shareholders
□Applicable Not applicable
II. Changes in Directors, Supervisors and Senior Management of the Company
There were no changes in the directors, supervisors and senior management of the Company during the
reporting period, which can be found in the 2022 Annual Report, and some of them have changed their biographies
as follows:
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”.
III. Profit Distribution and Conversion of Capital Reserve into Share Capital during the
Reporting Period
The company plans to have no cash dividend, bonus shares, and capitalization of provident fund for the half-year.
IV. Implementation of the Equity Incentive Plan, Employee Stock Ownership Plan or other
Employee Incentives
The Company had no implementation of equity incentive plan, employee stock ownership plan or other employee
incentives during the reporting period.
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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 strictly abide by the requirements of relevant laws and regulations such as
the Environmental Protection Law of the People’s Republic of China, the Law of the People’s Republic of China on
the Prevention and Control of Atmospheric Pollution, the Law of the People’s Republic of China on the Prevention
and Control of Water Pollution, the Law of the People’s Republic of China on the Prevention and Control of
Environmental Pollution by Solid Wastes, and strictly implements the relevant standards such as the Emission
Standard of Pollutants for Petroleum Refining Industry and the Emission Standard of Pollutants for Petrochemical
Industry.
1. Executive standards:
(1) The emissions of flue gas from the heating furnace, catalytic regeneration flue gas, tail gas from the sulfur
unit, reforming catalytic regeneration flue gas, organic waste gas and the concentration of atmospheric pollutants at
the plant boundary shall comply with the special emission limits for atmospheric pollutants specified in the Emission
Standard of Pollutants for Petroleum Refining Industry (GB31570-2015) and the Emission Standard of Pollutants
for Petrochemical Industry (GB31571-2015) and Emission Standards for Synthetic Resin Industry Pollutants
(GB31572-2015).
(2) The sulfuric acid mist of sulfuric acid plants shall be subject to the special emission limits of atmospheric
pollutants specified in the Emission Standard of Pollutants for Sulfuric Acid Industry (GB26132-2010).
(3) The emission of odor pollutants shall comply with the Class II standard of Emission Standard for Odor
Pollutants (GB14554-93).
(4) The exhaust gas pollutants of the power boiler shall be subject to an 80% commitment value of emission
limit specified in Phase II of the Emission Standard of Air Pollutants for Coal-fired Power Plants (DB33/2147-
2018).
(5) The exhaust gas pollutants from boilers in Mamu Oil Depot shall be subject to the special emission limits
of oil-fired boilers in the Emission Standard of Air Pollutants for Boilers (GB13271-2014).
(6) The tailwater discharge of the integrated project and the sewage treatment plant of the base shall comply
with the special discharge limits specified in the Emission Standard of Pollutants for Petroleum Refining Industry
(GB 31570-2015), the Emission Standard of Pollutants for Petrochemical Industry (GB31571-2015) and the
Emission Standard of Pollutants for Synthetic Resin Industry (GB31572-2015).
(7) The noise at the boundary of the factory shall comply with the Class III standard of Emission Standard for
Noise at Boundary of Industrial Enterprises (GB12348-2008).
(8) The Integrated Project and the Solid Waste Disposal Center shall implement the Standard for Pollution
Control on the Non-hazardous Industrial Solid Waste Storage and Landfill (GB 18599-2001), the Standard for
Pollution Control of Hazardous Waste Storage (GB 18597-2001), the Standard for Pollution Control of Hazardous
Waste Incineration (GB18484-2020) and the Standard for Pollution Control of Hazardous Waste Landfill (GB
18598-2019).
2. Quality standards
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2023 Semi-annual Report
(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
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2023 Semi-annual Report
S /N Certificate Certificate No. Issued by Application date Period of validity
Rongsheng Petrochemical Pollutant Hangzhou Ecological Environment
1 91330000255693873W001P November 06, 2021 November 05, 2026
Discharge Permit Bureau
Zhoushan Ecological Environment
2 ZPC Pollutant Discharge Permit 913309003440581426001P July 19, 2019 July 18, 2024
Bureau (Daishan Branch)
Environmental Protection Department
3 ZPC Radiation Safety Permit ZHFZ [L2105] October 18, 2018 October 17, 2023
of Zhejiang Province
Yushan Petrochemical Hazardous Waste Ecological Environment Department of
4 3309000267 January 06, 2023 January 05, 2028
Operation License Zhejiang Province
Yushan Petrochemical Pollutant Discharge Zhoushan Ecological Environment
5 91330900M A28K51W9C001P April 03, 2019 April 02, 2024
Permit Bureau
Zhongjin Petrochemical Pollutant Discharge Ningbo Ecological Environment
6 91330211764527945N001P December 02, 2020 December 31, 2025
Permit Bureau (Zhenhai Branch)
7 Zhongjin Petrochemical Radiation Safety ZHFZ [B2500] Ecological Environment Department of July 17, 2023 July 16, 2028
Permit Zhejiang Province
Ningbo Ecological Environment
8 Zhejiang Yisheng Pollutant Discharge Permit 91330200744973411W001W / December 15, 2026
Bureau (Beilun Branch)
Ecological Environment Department of
9 Zhejiang Yisheng Radiation Safety Permit ZHFZ (B2005) / November 17, 2024
Zhejiang Province
Shengyuan Petrochemical Fiber Pollutant Hangzhou Ecological Environment
10 91330109754409144F001P November 06, 2021 November 05, 2026
Discharge Permit Bureau
Shengyuan Petrochemical Fiber Radiation Ecological Environment Department of
11 ZHFZ A2408 M arch 14, 2022 M arch 13, 2027
Safety Permit Zhejiang Province
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 Pollutant discharge
pollutants pollutants Discharge of Emission Total Total certified Excessive
S ubsidiary of discharge standards in
and and method discharge concentration/intensity emissions emissions emissions
Name outlets execution
particular particular outlets
pollutants pollutants
Discharge
Rongsheng Particulate GB31572、
Waste gas after 1 Furnace area 1.1245-3.1405mg/m3 1.4347t 13.65t/a None
Petrochemical matter
treatment GB31571、
DB3301/T0205、
Rongsheng Waste gas NOx Discharge 1 Furnace area 14.701-45.007mg/m3 18.42t 102.59t/a None
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Petrochemical after GB14554、GB16297
treatment
Discharge
Rongsheng
Waste gas Sulfur dioxide after 1 Furnace area 2.544-4.31mg/m3 2.2431t 121.93t/a None
Petrochemical
treatment
Discharge
Rongsheng
Waste gas VOC after 1 Furnace area 0.221-0.545mg/m3 0.2869t 110.38t/a None
Petrochemical
treatment
Discharge GB31570、
Particulate In the M ean: 0.80mg/m3;
ZPC Waste gas after 58 72.53t 1566.86t/a None
matter factory range: 0-11.26mg/m3 GB31571、GB31572
treatment
Discharge GB31570、
In the M ean: 3.24mg/m3;
ZPC Waste gas Sulfur dioxide after 90 278.31t 2750.8t/a None
factory range: 0.07-32.29mg/m3 GB31571、GB31572
treatment
Discharge M ean: 30.75mg/m3; GB31570、
In the
ZPC Waste gas NOx after 93 range: 0.25- 2505.38t 7078.45t/a None
factory GB31571、GB31572
treatment 105.32mg/m3
Discharge GB31570、
Waste In the M ean: 29.73mg/L;
ZPC COD after 1 347.56t 411.77t/a None
water factory range: 1.1-49.7mg/L GB31571、GB31572
treatment
Discharge
Waste Ammonia In the M ean: 0.1268mg/L; GB31570、
ZPC after 1 1.6t 42.08t/a None
water nitrogen factory range: 0.01-3.33mg/L GB31571、GB31572
treatment
Discharge
Yushan Particulate In the M ean: 5.97mg/m3; DB33/2147、
Waste gas after 13 18.73t 113.46t/a None
Petrochemical matter factory range: 0.27-24.25mg/m3 GB13271、GB18484
treatment
Discharge
Yushan In the M ean: 6.87mg/m3; DB33/2147、
Waste gas Sulfur dioxide after 13 41.71t 955.31t/a None
Petrochemical factory range: 0.73-28.79mg/m3 GB13271、GB18484
treatment
Discharge M ean: 39.20mg/m3;
Yushan In the DB33/2147、
Waste gas NOx after 13 range: 22.71- 657.76t 847.63t/a None
Petrochemical factory GB13271、GB18484
treatment 69.87mg/m3
Zhongjin Continuous Whole
Waste gas Sulfur dioxide 15 5.99mg/m3 GB13223、GB31570 54.16t 251.76t/a None
Petrochemical blow-down factory
Zhongjin Continuous Whole
Waste gas NOx 15 26.38mg/m3 GB13223、GB31570 238.39t 1141.74t/a None
Petrochemical blow-down factory
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Zhongjin Continuous Whole
Waste gas Smoke dust 15 3.28mg/m3 GB13223、GB31570 29.60t 216.44t/a None
Petrochemical blow-down factory
Chemical
Zhongjin Waste Continuous
oxygen 2 East side 45.46mg/L GB8978 99.19t 469.03t/a None
Petrochemical water blow-down
demand
Zhongjin Waste Ammonia Continuous
2 East side 0.58mg/L GB8978 1.26t 52.23t/a None
Petrochemical water nitrogen blow-down
Northwest
Chemical
Yisheng Waste Continuous corner and
oxygen 2 56.28mg/L 300mg/L 377.92t 1680t/a None
Dahua water blow-down north side of
demand the plant
Northwest
Yisheng Waste Ammonia Continuous corner and
2 0.2mg/L 30mg/L 1.5844t 182t/a None
Dahua water nitrogen blow-down north side of
the plant
Southeast
Yisheng Continuous
Waste gas NOx 3 corner of the 23.48mg/m 50mg/m 44.95t 405t/a None
Dahua blow-down
plant
Southeast
Yisheng Continuous
Waste gas Sulfur dioxide 3 corner of the 1.15mg/m 35mg/m 2.28t 251t/a None
Dahua blow-down plant
Southeast
Yisheng Continuous
Waste gas Smoke dust 3 corner of the 1.32mg/m 5mg/m 3.62t 51t/a None
Dahua blow-down
plant
Process Discharge
Zhejiang Sewage
waste COD after 1 47.65mg/L GB31571-2015 318.83t 1039.84t/a None
Yisheng station
water treatment
Process Discharge
Zhejiang Ammonia Sewage
waste after 1 0.16mg/L GB31571-2015 1.11t 17.35t/a None
Yisheng nitrogen station
water treatment
Discharge
Zhejiang
Waste gas SO2 after 2 Boiler island 7.6mg/m DB33/2147-2018 17.87t 197.45t/a None
Yisheng
treatment
Discharge
Zhejiang
Waste gas NOX after 2 Boiler island 36.63mg/m DB33/2147-2018 37.94t 458.43t/a None
Yisheng
treatment
Zhejiang Waste gas Smoke dust Discharge 2 Boiler island 2.53mg/m DB33/2147-2018 6.45t 78.99t/a None
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Yisheng after
treatment
Discharge Boiler/heat
Hainan GB13223-2011、
Waste gas SO2 after 2 medium 36.11/61.12mg/m 88.47t 679t/a None
Yisheng GB13271-2014
treatment furnace
Discharge Boiler/heat
Hainan GB13223-2011、
Waste gas NOx after 2 medium 43.62/160.68mg/m 185.60t 989.9t/a None
Yisheng GB13271-2014
treatment furnace
Discharge Boiler/heat
Hainan GB13223-2011、
Waste gas Smoke dust after 2 medium 11.67/17.29mg/m 26.86t 232t/a None
Yisheng GB13271-2014
treatment furnace
Process Discharge
Hainan Sewage GB31571-2015、
waste COD after 1 28.49mg/L 56.90t 236.15t/a None
Yisheng station GB31572-2015
water treatment
Process Discharge
Hainan Ammonia Sewage GB31571-2015、
waste after 1 0.15mg/L 0.27t 17.7t/a None
Yisheng nitrogen station GB31572-2015
water treatment
Shengyuan Discharge
Particulate West side of
Chemical Waste gas after 1 4.18mg/m 2.99t 8.74t/a None
matter the factory
Fiber treatment
Shengyuan Discharge
West side of
Chemical Waste gas NOx after 1 28.94mg/m GB31572、 17.35t 52.15t/a None
the factory
Fiber treatment GB31571、
Shengyuan Discharge DB3301/T0205、
West side of
Chemical Waste gas Sulfur dioxide after 1 1.21mg/m GB14554、GB16297 1.793t 17.38t/a None
the factory
Fiber treatment
Shengyuan Discharge
West side of
Chemical Waste gas VOC after 1 0.87mg/m 1.066t 97.298t/a None
the factory
Fiber treatment
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Treatment of pollutants
The above companies build pollutant management facilities in accordance with the requirements of the
environmental impact assessment of construction projects, and the prevention and control measures for waste gas,
waste water, solid waste and noise are designed, constructed and put into operation at the same time as the main
installations in strict accordance with the requirements of the environmental impact assessment, and the daily
maintenance of equipment and facilities are carried out to ensure the high efficiency and stability of the pollutant
management facilities.
Emergency response plan for environmental emergencies
1. The Emergency Response Plan for Environmental Emergencies of Rongsheng Petrochemical Co., Ltd. was
completed in July 2022 for filing by the local environmental protection department, with filing number 330109-
2022-045-L.
2. The Emergency Response Plan for Environmental Emergencies of Zhejiang Petroleum and Chemical Co.,
Ltd. has completed the filing at the local environmental protection department, Emergency Response Plan Filing
No.: 330921-2021-023-H; Emergency Response Plan Filing Authorities: Zhoushan Ecological and Environmental
Protection Bureau (Daishan branch).
3. The Emergency Response Plan for Environmental Emergencies of Ningbo Zhongjin Petrochemical Co., Ltd.
was revised, evaluated and filed with the local environmental protection department in March 2022, with filing No.
330211-2022-019-H.
4. The Emergency Response Plan for Environmental Emergencies of Zhejiang Yisheng Petrochemical Co., Ltd.
was revised, evaluated and filed with the local environmental protection department in September 2021.
5. The Emergency Response Plan for Environmental Emergencies of Zhejiang Shengyuan Chemical Fiber Co.,
Ltd. was completed on June 2, 2022 for filing by the local environmental protection department, with filing No.
330109-2022-034-L.
6. The Emergency Response Plan for Environmental Emergencies of Hainan Yisheng Petrochemical Co., Ltd.
was revised, evaluated and filed with the local environmental protection department in December 2021.
Investment in environmental governance and protection and payment of environmental protection taxes
In accordance with the relevant requirements of the local government at the national level, the Company and
its subsidiaries completed various monitoring and environmental governance work. From January to June 2023, the
Company invested a total of approximately RMB49,960,000 in environmental protection related investments, and
the Company and its subsidiaries paid a total of approximately RMB5,650,000 in environmental protection taxes.
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 accordanc e 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.
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.
Measures taken to reduce carbon emissions during the reporting period and their effects
As an active participant in China’s environmental protection cause, Rongsheng Petrochemical actively fulfills
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its commitment to green development, fully implements the requirements of the state and the company on carbon
reduction and energy saving management, focuses on the development of recycling economy, cleaner production,
green manufacturing, strengthens the management of carbon emissions, gives full play to the advantages of carbon
fixation and carbon elimination, builds the whole life cycle of the green manufacturing system and promotes the
green, low-carbon, and high-quality development of the industry chain by linking with the upstream and
downstream partners.
The Company actively implements circular economy development mode, and recycles and utilizes the high
concentration CO2 generated from EO/EG (ethylene oxide/ethylene glycol) plant as raw material of DMC/PC
(dimethyl carbonate/polycarbonate) plant, which effectively reduces carbon emission. At present, the company
recycles and refines the tail gas of high concentration CO2 emissions from a 800,000 tons/year ethylene glycol plant
for the production of polycarbonate raw materials, and another CO2 recovery project for an ethylene glycol plant is
under implementation, forming an environmentally friendly green industrial chain process of CO2 recovery,
utilization, and the production of high-end PC resins, which is characteristic of the company.
ZPC renovated the original power center to reduce gas demand by converting 7 coal-fired boilers into gas-fired
boilers. ZPC optimizes the operation of flare system, recovers flare gas with calorific value up to the standard in
time, and accurately accompanies flare gas with calorific value not up to the standard, reduces the amount of
accompanied fuel gas, and saves about 30 tons/hour of fuel gas. Zhongjin Petrochemical adopts 95+ energy-saving
and environment-friendly waste heat recovery system to renovate the aromatics heating furnace. By purifying the
fuel and adding new facilities such as preheater, blower and induced draft fan, the efficiency of the heating furnace
has been increased to 95%, with an annual energy saving of 15,000 tons of standard coal.
Ⅴ. Social Responsibility Information
The Company implements the concept of win-win cooperation and continues to help the community public
welfare, and demonstrates its mission and responsibility with practical actions. The Company continues to improve
the quality of customer service, strengthen the management of responsible purchasing, provide public welfare
volunteer services, and work together with customers, suppliers, the public and other stakeholders in the community
to make progress, build harmony and share the benefits.
The Company adheres to the customer-centered approach, continuously improves the service management
system, actively responds to the diversified needs of customers, improves the quality and efficiency of services in
multiple dimensions, strictly protects the privacy and information security of customers, and enhances customer
satisfaction.
The Company is committed to building a responsible supply chain, deepening supplier compliance
management, optimizing supplier management and business processes, attaching importance to the prevention of
supply chain risks, establishing equal and mutually beneficial, close and stable cooperative relationships with
outstanding suppliers, and working together with suppliers to build an honest, transparent and responsible supply
chain ecology.
The company advocates the concept of public welfare, is enthusiastic about public welfare, and actively carries
out public welfare donations to share the fruits of development with the society. It is committed to helping students
and teachers, medical mutual aid, poverty alleviation and care for special groups, and encourages employees to
participate in blood donation, condolences and other types of volunteer activities, carry forward the spirit of
volunteerism, and continue to promote the public welfare cause and the healthy development of the community, and
actively spread the civilization and harmony of the social trends, and to contribute to the construction of a
harmonious and beautiful society.
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Section VI Important Matters
I. 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 thos e which have
not been completed beyond the reporting period as of the end of the reporting period
Time of
Commitme Commitme Term of
Cause of Commitment Content of Commitment Commitmen Fulfillment
nt Party nt Type Commitment
t
Share reform commitment N/A N/A N/A N/A N/A
Commitments stated in the Report
of Acquisition or Equity Change N/A N/A N/A N/A N/A
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
Directors promised that during their term of office, they would not transfer
Term of
and Commitmen shares they held (including directly and indirectly) in the issuer of
Commitment made during IPO or November commitment for
supervisors t made more than 25% of the total shares held (including directly and Fulfilled
re-financing 02, 2010 share lock-up is
of the during IPO indirectly) by them in the issuer every year. Within half a year after
36 months
Company resignation, they would not transfer shares directly or indirectly
held by them in the issuer.
Equity incentive commitment N/A N/A N/A N/A N/A
Zhejiang Rongsheng Holding Group Co., Ltd., the controlling
shareholder of the Company, signed the Non-competition
Agreement with the Company and promised not to compete with
the Company in the same industry. Li Shuirong, the de facto
Shareholder Commitmen
Other commitments to minority controller and the largest natural person shareholder of the November
s before t made Long term Fulfilled
shareholders of the Company Company, and other shareholders, including Li Yongqing, Li 02, 2010
issuance during 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.
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Other commitments N/A N/A N/A N/A N/A
Whether the commitments are
Yes
performed on time
If the commitments have not been
fulfilled after the deadline, the
specific reasons for the failure to
N/A
complete the performance and the
work plan for the next step should
be explained in details
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II. Non-operating Occupation of Funds of the Listed Company by the Controlling
Shareholder and Other Related Parties
There was no non-operating occupation of funds of the listed company by the controlling shareholder and other
related parties during the reporting period.
III. Illegal External Guarantee
There was no illegal external guarantee during the reporting period.
IV. Appointment and Dismissal of Accounting Firm
Whether the semi-annual financial report has been audited
The semi-annual financial report has not been audited.
V. Explanation of the Board of Directors and the Board of Supervisors on the “Non-standard
Audit Report” for the reporting period issued by the accounting firm
□Applicable Not applicable
VI. Explanation of the Board of Directors on the Relevant Situation of the Previous Year of
the “Non-standard Audit Report”
□Applicable Not applicable
VII. Matters Related to Bankruptcy and Reorganization
The Company did not have any matters related to bankruptcy or reorganization during the reporting period.
VIII. Litigation Matters
Major litigation and arbitration matters
The Company had no major litigation and arbitration during the reporting period.
Other litigation matters
□Applicable Not applicable
IX. Punishment and Rectification
Type of
investig Conclusion (if Disclosure
Name Type Reason Disclosure reference
ation/pe any) Date
nalty
Rongsheng Zhejiang Securities The supervision For details, please refer to
January 12,
Petrochemic Other Regulatory Bureau Other and the Announcement on the
2023
al Co., Ltd. found in the on-site management Company and Relevant
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2023 Semi-annual Report
Li Shuirong Director inspection that the measure of Personnel Receiving a
company had issuing a Warning Letter from
Xiang irregularities in the warning letter Zhejiang Securities
Director
Jiongjiong recognition of was taken and Regulatory Bureau
revenue from recorded in the (Announcement No.
Wang Senior trading business integrity 2023-002) on the Juchao
Yafang management and in accounting archives of Information Network
Quan treatment in 2020- securities and (www.cninfo.com.cn)
Director 2021. futures markets.
Weiying
Description of the rectification
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,
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.
X. Integrity of the Company and its controlling shareholders and actual controllers
□Applicable Not applicable
XI. Major Related Transactions
1. Related party transactions related to daily operations
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Pricing
Content Amount Proportio Excee S ettlemen Available
Type of principle Price of Trading
s of of related n to d the t of market
related s of related limit Disclo
Related Relatio related party similar appro related price for
party related party approved sure Disclosure reference
party nship party transacti transacti ved party similar
transact party transacti (RMB Date
transact on (RMB on limit transactio transactio
ion transacti on 10,000)
ion 10,000) amount or not n n
on
http://www.cninfo.com.cn/
Coal,
Banker’s new/disclosure/detail?plate
low-
Rongshe Parent Purchas acceptanc April =szse&orgId=9900015502
value M arket M arket 920,310.5 M arket
ng compan e of 99.51% 1600000 No e bill, spot 20, &stockCode=002493&ann
consum price price 6 price
Holding y goods exchange, 2023 ouncementId=1216478196
ables,
etc. &announcementTime=202
etc.
3-04-20
http://www.cninfo.com.cn/
Banker’s new/disclosure/detail?plate
Associat
Zhejian acceptanc April =szse&orgId=9900015502
ed Sales of Aromati M arket M arket 536,883.9 M arket
g 6.31% 1500000 No e bill, spot 20, &stockCode=002493&ann
enterpris goods cs, etc. price price 9 price
Yisheng exchange, 2023 ouncementId=1216478196
e
etc. &announcementTime=202
3-04-20
http://www.cninfo.com.cn/
new/disclosure/detail?plate
Purchas April =szse&orgId=9900015502
Saudi Crude M arket M arket 2,718,963 Electronic M arket
[Note] e of 34.15% 7100000 No 20, &stockCode=002493&ann
Aramco oil price price .07 transfer price
goods 2023 ouncementId=1216478196
&announcementTime=202
3-04-20
4,176,157 10,200,00
Total -- -- -- -- -- -- -- --
.62 0
Details of return of large sales N/A
Actual performance during the reporting
period where the total amount of daily
related party transactions to occur in the None
current period is estimated by category (if
any)
Reasons for substantial differences between
the transaction price and market reference N/A
price (if applicable)
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2023 Semi-annual Report
[Note] Zhejiang Rongsheng Holding Group, the controlling shareholder of the Company, signed the Share Purchase
Agreement with the strategic partner Aramco Overseas Company B.V (hereinafter referred to as AOC), a wholly-
owned subsidiary of Saudi Arabian Oil Company (hereinafter referred to as Saudi Aramco) on March 27, 2023, and
the transferring parties have obtained the Confirmation of Securities Transfer Registration issued by China
Securities Depository and Clearing Corporation Limited on July 20, 2023 and completed the transfer.
2. Related party transactions arising from the acquisition and sale of assets or equity
The Company had no connected transactions related to the acquisition or sales of assets or equity during the
reporting period.
3. Related-party transactions for outward joint investment
The Company had no connected transactions related to joint outward investment during the reporting period.
4. Connected transactions on credit and debt
The Company had no connected transactions on credit and debt during the reporting period.
5. Transactions with financial companies with associated relationships
There are no deposits, loans, credits or other financial operations between the Company and the related finance
companies, and the related party.
6. Transactions between the financial companies controlled by the company and related parties
There are no deposits, loans, credits or other financial operations between the finance companies controlled by the
Company and the related party.
7. Other major related party transactions
There were no other major connected transactions during the reporting period.
XII. Material Contracts and Their Performance
1. Trusteeship, contracting and leasing
(1) Entrustment
The Company had no entrustment during the reporting period.
(2) Contracting
There was no contracting during the reporting period.
(3) Lease
There was no leasing during the reporting period.
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2023 Semi-annual Report
2. Major guarantee
Unit：RM B 10,000
Guarantees of the Company to its subsidiaries
Date of disclosure Related
Name of Amount of Counter-
of announcement Guarantee Date of actual Type of Collateral Period of Completed party
guaranteed actual guarantees
relating to amount occurrence guarantee (if any) guarantee or not guarantee
party guarantee (if any)
guarantee amount or not
Joint liability
ZPC December 14, 2022 6,260,000 July 31, 2018 255,000 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 10, 2018 101,754.69 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 08, 2018 59,699.56 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 08, 2018 19,899.85 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 18, 2019 57,375 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 03, 2018 11,897.28 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 08, 2018 51,722.57 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 09, 2018 19,530.45 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 09, 2018 29,294.66 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 10, 2018 4,596.38 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 10, 2018 9,764.62 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 13, 2018 3,616.41 July 30, 2030 No Yes
guarantee
ZPC December 14, 2022 6,260,000 August 16, 2018 34,360.74 Joint liability July 30, 2030 No Yes
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2023 Semi-annual Report
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 15, 2018 7,234.86 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 31, 2018 25,500 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 September 29, 2018 51,000 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 October 23, 2018 59,661.59 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 October 26, 2018 10,846.68 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 October 30, 2018 5,062.97 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 October 31, 2018 21,702.54 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 07, 2018 6,982.72 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 08, 2018 14,104.45 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 08, 2018 10,490.7 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 03, 2018 5,100.51 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 09, 2018 17,214.54 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 01, 2019 26,389.54 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 03, 2019 18,081.54 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 04, 2019 2,893.13 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 09, 2018 7,378.68 July 30, 2030 No Yes
guarantee
ZPC December 14, 2022 6,260,000 January 04, 2019 12,658.2 Joint liability July 30, 2030 No Yes
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2023 Semi-annual Report
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 04, 2019 93,840 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 08, 2019 6,872.25 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 09, 2019 18,070.58 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 10, 2019 9,041.32 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 14, 2019 4,410.14 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 15, 2019 13,023.36 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 30, 2019 65,790 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 31, 2019 14,469.72 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 30, 2019 2,169.85 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 February 01, 2019 11,926.1 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 04, 2019 2,895.27 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 February 01, 2019 7,595.43 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 February 01, 2019 6,148.09 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 February 03, 2019 25,320.99 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 February 11, 2019 3,307.6 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 February 12, 2019 4,700.16 July 30, 2030 No Yes
guarantee
ZPC December 14, 2022 6,260,000 February 11, 2019 19,271.88 Joint liability July 30, 2030 No Yes
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2023 Semi-annual Report
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 February 27, 2019 46,920 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 01, 2019 8,311.98 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 February 01, 2019 3,251.25 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 07, 2019 5,062.77 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 07, 2019 12,658.2 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 08, 2019 1,446.56 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 08, 2019 4,339.83 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 12, 2019 3,255.84 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 13, 2019 2,205.07 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 15, 2019 17,725.56 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 18, 2019 17,102.85 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 29, 2019 18,360 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 08, 2019 3,614.12 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 10, 2019 723.28 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 11, 2019 1,446.77 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 07, 2019 2,167.5 July 30, 2030 No Yes
guarantee
ZPC December 14, 2022 6,260,000 April 11, 2019 2,532.66 Joint liability July 30, 2030 No Yes
43 / 187
2023 Semi-annual Report
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 12, 2019 6,151.11 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 12, 2019 735.02 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 12, 2019 5,062.77 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 15, 2019 1,808.26 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 01, 2019 7,951.41 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 11, 2019 1,083.75 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 07, 2019 4,049.91 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 07, 2019 17,340 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 07, 2019 7,956 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 09, 2019 3,254.87 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 10, 2019 1,084.92 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 13, 2019 1,837.56 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 13, 2019 2,531.44 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 16, 2019 11,574.45 July 30, 2030 No Yes
guarantee
Joint liability M arch 15,
ZPC December 14, 2022 6,260,000 M ay 16, 2019 16,214.7 No Yes
guarantee 2027
Joint liability
ZPC December 14, 2022 6,260,000 M ay 30, 2019 51,000 July 30, 2030 No Yes
guarantee
ZPC December 14, 2022 6,260,000 June 01, 2019 4,339.59 Joint liability July 30, 2030 No Yes
44 / 187
2023 Semi-annual Report
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 04, 2019 12,657.84 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 07, 2019 1,734 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 05, 2019 7,234.86 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 05, 2019 9,040.36 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 06, 2019 4,339.69 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 06, 2019 35,700 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 06, 2019 3,675.11 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 12, 2019 21,702.54 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 20, 2019 362.61 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 01, 2019 51,000 July 30, 2030 No Yes
guarantee
Joint liability M arch 15,
ZPC December 14, 2022 6,260,000 July 05, 2019 11,055.47 No Yes
guarantee 2027
Joint liability
ZPC December 14, 2022 6,260,000 July 05, 2019 3,978.18 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 08, 2019 1,446.56 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 08, 2019 17,850 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 10, 2019 14,469.72 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 10, 2019 4,777.65 July 30, 2030 No Yes
guarantee
ZPC December 14, 2022 6,260,000 July 10, 2019 3,255.84 Joint liability July 30, 2030 No Yes
45 / 187
2023 Semi-annual Report
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 05, 2019 1,806.93 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 10, 2019 2,532.66 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 11, 2019 1,083.75 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 16, 2019 3,614.12 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 16, 2019 6,507.09 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 July 31, 2019 39,784.08 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 02, 2019 7,233.05 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 07, 2019 3,675.11 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 07, 2019 8,862.78 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 07, 2019 5,423.34 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 September 23, 2019 3,614.88 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 September 23, 2019 2,900.88 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 September 29, 2019 44,370 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 September 30, 2019 10,851.27 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 August 07, 2019 3,800.01 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 October 09, 2019 3,795.42 July 30, 2030 No Yes
guarantee
ZPC December 14, 2022 6,260,000 October 21, 2019 10,490.7 Joint liability July 30, 2030 No Yes
46 / 187
2023 Semi-annual Report
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 October 21, 2019 6,865.62 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 October 29, 2019 26,520 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 15, 2019 9,046.38 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 October 09, 2019 1,627.92 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 18, 2019 3,039.09 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 19, 2019 1,300.5 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 21, 2019 74,970 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 December 18, 2019 2,948.82 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 December 19, 2019 5,062.77 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 December 24, 2019 5,427.93 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 16, 2020 6,872.25 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 16, 2020 3,979.02 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 16, 2020 2,205.24 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 16, 2020 10,490.7 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 January 16, 2020 2,134.35 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 February 14, 2020 2,530.98 July 30, 2030 No Yes
guarantee
ZPC December 14, 2022 6,260,000 February 18, 2020 727.77 Joint liability July 30, 2030 No Yes
47 / 187
2023 Semi-annual Report
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 16, 2020 4,700.16 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 19, 2020 7,234.86 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 31, 2020 10,200 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 01, 2020 16,575 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 17, 2020 1,806.93 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 April 17, 2020 2,532.66 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 13, 2020 2,040 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 03, 2020 4,339.59 July 30, 2030 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 June 05, 2020 4,339.59 July 30, 2030 No Yes
guarantee
Joint liability November
ZPC December 14, 2022 6,260,000 January 20, 2021 79,380 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 20, 2021 23,226 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 20, 2021 88,200 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 20, 2021 294,000 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 20, 2021 128,772 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 20, 2021 25,519.2 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 20, 2021 8,820 No Yes
guarantee 15, 2032
ZPC December 14, 2022 6,260,000 January 21, 2021 33,516 Joint liability November No Yes
48 / 187
2023 Semi-annual Report
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 21, 2021 58,800 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 21, 2021 58,800 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 21, 2021 11,760 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 January 22, 2021 33,516 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 February 04, 2021 55,860 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 February 05, 2021 44,100 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 February 05, 2021 41,160 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 February 05, 2021 17,640 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 February 05, 2021 58,800 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 February 05, 2021 108,780 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 February 05, 2021 67,032 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 February 07, 2021 33,516 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 M arch 18, 2021 12,348 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 M arch 18, 2021 20,956.32 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 M arch 19, 2021 29,400 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 M arch 19, 2021 35,280 No Yes
guarantee 15, 2032
ZPC December 14, 2022 6,260,000 M arch 22, 2021 58,800 Joint liability November No Yes
49 / 187
2023 Semi-annual Report
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 M arch 22, 2021 58,800 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 M arch 25, 2021 29,400 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 M arch 26, 2021 147,000 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 M arch 26, 2021 47,040 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 April 28, 2021 17,640 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 April 28, 2021 76,440 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 April 28, 2021 36,456 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 April 28, 2021 29,400 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 April 28, 2021 18,228 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 April 29, 2021 47,040 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 April 30, 2021 2,940 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 April 30, 2021 2,940 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 June 29, 2021 58,800 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 July 05, 2021 194,040 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 July 05, 2021 29,400 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 July 06, 2021 23,520 No Yes
guarantee 15, 2032
ZPC December 14, 2022 6,260,000 July 06, 2021 41,160 Joint liability November No Yes
50 / 187
2023 Semi-annual Report
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 July 06, 2021 85,260 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 July 06, 2021 85,260 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 July 06, 2021 88,200 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 July 06, 2021 176,400 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 July 06, 2021 23,520 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 September 15, 2021 59,364.48 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 September 17, 2021 23,520 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 September 17, 2021 22,932 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 September 17, 2021 47,040 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 September 17, 2021 120,540 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 September 22, 2021 19,404 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 June 13, 2022 9,408 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 July 11, 2022 199.92 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 August 02, 2022 129.36 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 August 04, 2022 223.44 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 August 09, 2022 70.56 No Yes
guarantee 15, 2032
ZPC December 14, 2022 6,260,000 August 10, 2022 8.82 Joint liability November No Yes
51 / 187
2023 Semi-annual Report
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 September 05, 2022 302.82 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 October 10, 2022 241.08 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 November 01, 2022 258.72 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 December 16, 2022 41.16 No Yes
guarantee 15, 2032
Joint liability November
ZPC December 14, 2022 6,260,000 December 27, 2022 4704 No Yes
guarantee 15, 2032
Joint liability
ZPC December 14, 2022 6,260,000 June 06, 2019 1,082.67 July 01, 2023 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M arch 29, 2021 4.73 July 01, 2023 No Yes
guarantee
Joint liability January 02,
ZPC December 14, 2022 6,260,000 M ay 13, 2021 231.59 No Yes
guarantee 2024
Joint liability
ZPC December 14, 2022 6,260,000 M ay 27, 2021 120.84 July 01, 2023 No Yes
guarantee
Joint liability April 16,
ZPC December 14, 2022 6,260,000 July 29, 2021 1,692.06 No Yes
guarantee 2024
Joint liability
ZPC December 14, 2022 6,260,000 November 18, 2021 0.41 July 01, 2023 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 November 26, 2021 299.9 July 30, 2023 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 December 03, 2021 39.7 July 01, 2023 No Yes
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 M ay 17, 2022 61.44 July 01, 2023 No Yes
guarantee
Joint liability April 30,
ZPC December 14, 2022 6,260,000 September 05, 2022 1,282.05 No Yes
guarantee 2024
Joint liability
ZPC December 14, 2022 6,260,000 September 08, 2022 11,149.6 July 30, 2024 No Yes
guarantee
ZPC December 14, 2022 6,260,000 September 19, 2022 20.92 Joint liability July 01, 2023 No Yes
52 / 187
2023 Semi-annual Report
guarantee
Joint liability
ZPC December 14, 2022 6,260,000 October 12, 2022 59.08 July 01, 2023 No Yes
guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 January 17, 2023 29,800 July 14, 2023 No Yes
Petrochemical guarantee
Zhongjin Joint liability August 11,
December 14, 2022 5,380,000 February 14, 2023 50,200 No Yes
Petrochemical guarantee 2023
Zhongjin Joint liability January 24,
December 14, 2022 5,380,000 February 01, 2023 35,000 No Yes
Petrochemical guarantee 2025
Zhongjin Joint liability February 06,
December 14, 2022 5,380,000 February 07, 2023 35,000 No Yes
Petrochemical guarantee 2026
Zhongjin Joint liability December 20,
December 14, 2022 5,380,000 January 01, 2023 29,000 No Yes
Petrochemical guarantee 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 June 14, 2023 17,906.29 No Yes
Petrochemical guarantee 12, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 June 16, 2023 28,530 No Yes
Petrochemical guarantee 14, 2023
Zhongjin Joint liability November
December 14, 2022 5,380,000 M ay 11, 2023 18,898.38 No Yes
Petrochemical guarantee 07, 2023
Zhongjin Joint liability November
December 14, 2022 5,380,000 M ay 18, 2023 18,644.99 No Yes
Petrochemical guarantee 14, 2023
Zhongjin Joint liability February 27,
December 14, 2022 5,380,000 February 28, 2023 33,000 No Yes
Petrochemical guarantee 2024
Zhongjin Joint liability October 13,
December 14, 2022 5,380,000 April 14, 2023 31,000 No Yes
Petrochemical guarantee 2023
Zhongjin Joint liability November
December 14, 2022 5,380,000 M ay 12, 2023 40,393.39 No Yes
Petrochemical guarantee 10, 2023
Zhongjin Joint liability November
December 14, 2022 5,380,000 M ay 15, 2023 23,800 No Yes
Petrochemical guarantee 14, 2023
Zhongjin Joint liability April 02,
December 14, 2022 5,380,000 April 03, 2023 17,000 No Yes
Petrochemical guarantee 2024
Zhongjin Joint liability August 18,
December 14, 2022 5,380,000 February 21, 2023 3,794.24 No Yes
Petrochemical guarantee 2023
Zhongjin December 14, 2022 5,380,000 M arch 14, 2023 8,891.93 Joint liability September No Yes
53 / 187
2023 Semi-annual Report
Petrochemical guarantee 01, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 M arch 17, 2023 5,707.75 No Yes
Petrochemical guarantee 01, 2023
Zhongjin Joint liability November
December 14, 2022 5,380,000 M ay 12, 2023 11,475.29 No Yes
Petrochemical guarantee 01, 2023
Zhongjin Joint liability November
December 14, 2022 5,380,000 M ay 16, 2023 16,670.98 No Yes
Petrochemical guarantee 10, 2023
Zhongjin Joint liability November
December 14, 2022 5,380,000 M ay 24, 2023 15,224.23 No Yes
Petrochemical guarantee 10, 2023
Zhongjin Joint liability November
December 14, 2022 5,380,000 June 05, 2023 10 No Yes
Petrochemical guarantee 30, 2023
Zhongjin Joint liability
December 14, 2022 5,380,000 June 05, 2023 10 M ay 31, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 June 05, 2023 27,980 July 02, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability December 08,
December 14, 2022 5,380,000 December 08, 2022 50 No Yes
Petrochemical guarantee 2023
Zhongjin Joint liability
December 14, 2022 5,380,000 December 08, 2022 50 June 08, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability December 08,
December 14, 2022 5,380,000 December 08, 2022 49,850 No Yes
Petrochemical guarantee 2024
Zhongjin Joint liability September
December 14, 2022 5,380,000 M arch 07, 2023 15,195.21 No Yes
Petrochemical guarantee 07, 2023
Zhongjin Joint liability February 28,
December 14, 2022 5,380,000 M arch 14, 2023 13,724.4 No Yes
Petrochemical guarantee 2024
Zhongjin Joint liability September
December 14, 2022 5,380,000 M arch 10, 2023 21,445.56 No Yes
Petrochemical guarantee 10, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 M arch 10, 2023 3,836.1 No Yes
Petrochemical guarantee 10, 2023
Zhongjin Joint liability November
December 14, 2022 5,380,000 November 18, 2022 15,000 No Yes
Petrochemical guarantee 18, 2023
Zhongjin Joint liability October 07,
December 14, 2022 5,380,000 April 07, 2023 26,821.23 No Yes
Petrochemical guarantee 2023
Zhongjin December 14, 2022 5,380,000 June 14, 2023 28,789.65 Joint liability December 14, No Yes
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Petrochemical guarantee 2023
Zhongjin Joint liability
December 14, 2022 5,380,000 July 08, 2022 16,400 July 08, 2023 No Yes
Petrochemical guarantee
Zhongjin Joint liability December 22,
December 14, 2022 5,380,000 June 26, 2023 7,500 No Yes
Petrochemical guarantee 2023
Zhongjin Joint liability
December 14, 2022 5,380,000 M ay 24, 2023 60,000 M ay 24, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 M ay 26, 2023 38,000 M ay 26, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 June 01, 2023 6,200 June 01, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 June 07, 2023 8,300 June 07, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 June 13, 2023 27,000 June 13, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 June 13, 2023 7,000 June 13, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 June 28, 2023 3,500 June 28, 2024 No Yes
Petrochemical guarantee
Zhongjin Joint liability September
December 14, 2022 5,380,000 September 13, 2022 16,000 No Yes
Petrochemical guarantee 13, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 September 14, 2022 11,600 No Yes
Petrochemical guarantee 14, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 September 19, 2022 24,890 No Yes
Petrochemical guarantee 19, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 September 29, 2022 33,610 No Yes
Petrochemical guarantee 29, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 M arch 15, 2023 4,685.03 No Yes
Petrochemical guarantee 10, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 January 20, 2023 11,000 No Yes
Petrochemical guarantee 23, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 January 29, 2023 15,300 No Yes
Petrochemical guarantee 23, 2023
Zhongjin December 14, 2022 5,380,000 February 08, 2023 3,700 Joint liability September No Yes
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Petrochemical guarantee 23, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 February 21, 2023 3,500 No Yes
Petrochemical guarantee 23, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 February 22, 2023 61,100 No Yes
Petrochemical guarantee 23, 2023
Zhongjin Joint liability September
December 14, 2022 5,380,000 M arch 08, 2023 5,400 No Yes
Petrochemical guarantee 23, 2023
Zhongjin Joint liability December 08,
December 14, 2022 5,380,000 June 09, 2023 17,630.11 No Yes
Petrochemical guarantee 2023
Zhongjin Joint liability December 14,
December 14, 2022 5,380,000 June 15, 2023 6,266.15 No Yes
Petrochemical guarantee 2023
Zhongjin Joint liability December 20,
December 14, 2022 5,380,000 February 28, 2019 3,000 No Yes
Petrochemical guarantee 2023
Zhongjin Joint liability
December 14, 2022 5,380,000 June 09, 2023 19,050 July 04, 2023 No Yes
Petrochemical guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 June 25, 2023 15,800 July 01, 2023 No Yes
Petrochemical guarantee
Zhongjin Joint liability
December 14, 2022 5,380,000 April 17, 2023 21,460.63 July 24, 2023 No Yes
Petrochemical guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 June 27, 2023 47,000 June 22, 2024 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 July 13, 2022 17,400 July 07, 2023 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 July 18, 2022 21,000 July 13, 2023 No Yes
Dahua guarantee
Yisheng Joint liability February 06,
December 14, 2022 5,380,000 M arch 10, 2023 9,039.92 No Yes
Dahua guarantee 2024
Yisheng Joint liability
December 14, 2022 5,380,000 M ay 24, 2023 20,000 M ay 22, 2025 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 June 15, 2023 33,000 June 06, 2025 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 June 19, 2023 15,100 June 07, 2024 No Yes
Dahua guarantee
Yisheng December 14, 2022 5,380,000 June 28, 2023 16,800 Joint liability June 19, 2024 No Yes
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Dahua guarantee
Yisheng Joint liability November
December 14, 2022 5,380,000 December 27, 2022 10,000 No Yes
Dahua guarantee 25, 2023
Yisheng Joint liability M arch 15,
December 14, 2022 5,380,000 M arch 27, 2023 20,000 No Yes
Dahua guarantee 2024
Yisheng Joint liability October 22,
December 14, 2022 5,380,000 October 14, 2022 18,144 No Yes
Dahua guarantee 2023
Yisheng Joint liability September
December 14, 2022 5,380,000 September 19, 2022 17,721.04 No Yes
Dahua guarantee 14, 2023
Yisheng Joint liability M arch 10,
December 14, 2022 5,380,000 M arch 16, 2023 18,040.27 No Yes
Dahua guarantee 2024
Yisheng Joint liability
December 14, 2022 5,380,000 M ay 29, 2023 6,862.52 July 23, 2023 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 M ay 30, 2023 6,862.52 July 23, 2023 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 June 01, 2023 3,502.96 July 11, 2023 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 June 01, 2023 3,660.01 July 11, 2023 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 June 08, 2023 3,339.08 July 30, 2023 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 June 08, 2023 3518.32 July 15, 2023 No Yes
Dahua guarantee
Yisheng Joint liability
December 14, 2022 5,380,000 June 16, 2023 3,786.34 July 21, 2023 No Yes
Dahua guarantee
Yisheng Joint liability August 19,
December 14, 2022 5,380,000 June 21, 2023 3,390.29 No Yes
Dahua guarantee 2023
Yisheng Joint liability
December 14, 2022 5,380,000 June 29, 2023 6,698.64 July 29, 2023 No Yes
Dahua guarantee
Shengyuan
Joint liability December 20,
Chemical December 14, 2022 5,380,000 January 01, 2023 10,000 No Yes
guarantee 2023
Fiber
Shengyuan Joint liability February 10,
December 14, 2022 5,380,000 February 10, 2023 10,500 No Yes
Chemical guarantee 2024
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Fiber
Shengyuan
Joint liability April 24,
Chemical December 14, 2022 5,380,000 M arch 24, 2023 7,000 No Yes
guarantee 2024
Fiber
Shengyuan
Joint liability M arch 15,
Chemical December 14, 2022 5,380,000 M arch 16, 2023 10,000 No Yes
guarantee 2024
Fiber
Shengyuan
Joint liability
Chemical December 14, 2022 5,380,000 July 19, 2022 10,000 July 18, 2023 No Yes
guarantee
Fiber
Shengyuan
Joint liability
Chemical December 14, 2022 5,380,000 July 08, 2022 20,000 July 07, 2023 No Yes
guarantee
Fiber
Shengyuan
Joint liability September
Chemical December 14, 2022 5,380,000 April 28, 2023 689.09 No Yes
guarantee 07, 2023
Fiber
Shengyuan
Joint liability September
Chemical December 14, 2022 5,380,000 January 18, 2023 390.61 No Yes
guarantee 19, 2023
Fiber
Shengyuan
Joint liability September
Chemical December 14, 2022 5,380,000 June 08, 2023 796.72 No Yes
guarantee 21, 2023
Fiber
Shengyuan
Joint liability September
Chemical December 14, 2022 5,380,000 M ay 19, 2023 1,254.86 No Yes
guarantee 06, 2023
Fiber
Shengyuan
Joint liability
Chemical December 14, 2022 5,380,000 M arch 09, 2023 632.11 July 20, 2023 No Yes
guarantee
Fiber
Yongsheng Joint liability December 15,
December 14, 2022 5,380,000 M arch 02, 2023 14,819.55 No Yes
Technology guarantee 2025
Yongsheng Joint liability December 15,
December 14, 2022 5,380,000 June 16, 2021 3,430 No Yes
Technology guarantee 2025
Yongsheng Joint liability December 15,
December 14, 2022 5,380,000 M ay 24, 2022 7,534 No Yes
Technology guarantee 2026
Yongsheng Joint liability December 15,
December 14, 2022 5,380,000 October 14, 2022 1,389.12 No Yes
Technology guarantee 2026
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Yongsheng Joint liability December 15,
December 14, 2022 5,380,000 M arch 02, 2023 2,436.09 No Yes
Technology guarantee 2023
Yongsheng Joint liability December 15,
December 14, 2022 5,380,000 June 16, 2021 564 No Yes
Technology guarantee 2023
Yongsheng Joint liability
December 14, 2022 5,380,000 M arch 02, 2023 3,248.12 June 15, 2024 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 June 16, 2021 752 June 15, 2024 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 M ay 24, 2022 466 June 15, 2024 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 October 14, 2022 85.89 June 15, 2024 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 June 06, 2022 7,744.11 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 June 15, 2022 3,565.37 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 August 22, 2022 1,433.53 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 September 06, 2022 2,293.22 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 October 12, 2022 6,745.75 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 October 24, 2022 9,902.7 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 November 09, 2022 2,231.62 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 November 28, 2022 2,634.69 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 December 14, 2022 2,745.17 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 January 19, 2023 4,398.97 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 February 14, 2023 3,190.42 June 06, 2032 No Yes
Technology guarantee
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2023 Semi-annual Report
Yongsheng Joint liability
December 14, 2022 5,380,000 April 25, 2023 1,706.04 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 M ay 17, 2023 1,433.53 June 06, 2032 No Yes
Technology guarantee
Yongsheng Joint liability
December 14, 2022 5,380,000 June 12, 2023 5,000 June 03, 2024 No Yes
Technology guarantee
Total balance of guarantees
Total limits of guarantees to
actually provided to subsidiaries
subsidiaries approved at the end of 11,640,000 6,806,681.81
at the end of the reporting period
the reporting period (B3)
(B4)
Guarantees of the subsidiaries to their subsidiaries
Date of disclosure Related
Name of Amount of Counter-
of announcement Guarantee Date of actual Type of Collateral Period of Completed party
guaranteed actual guarantees
relating to amount occurrence guarantee (if any) guarantee or not guarantee
party guarantee (if any)
guarantee amount or not
Yisheng Joint liability October 24,
December 24, 2022 162,000 April 24, 2023 79.85 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 24,
December 24, 2022 162,000 April 24, 2023 37.04 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 24,
December 24, 2022 162,000 April 24, 2023 18.7 No Yes
Dahua guarantee 2023
Yisheng Joint liability
December 24, 2022 162,000 April 07, 2023 1050 July 07, 2023 No Yes
Dahua guarantee
Yisheng Joint liability
December 24, 2022 162,000 April 07, 2023 1015 July 07, 2023 No Yes
Dahua guarantee
Yisheng Joint liability October 21,
December 24, 2022 162,000 April 21, 2023 33.22 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 21,
December 24, 2022 162,000 April 21, 2023 63.44 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 21,
December 24, 2022 162,000 April 21, 2023 5 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 21,
December 24, 2022 162,000 April 21, 2023 10.97 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 21,
December 24, 2022 162,000 April 21, 2023 113.08 No Yes
Dahua guarantee 2023
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Yisheng Joint liability October 21,
December 24, 2022 162,000 April 21, 2023 151.44 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 21,
December 24, 2022 162,000 April 21, 2023 140.78 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 21,
December 24, 2022 162,000 April 21, 2023 71.85 No Yes
Dahua guarantee 2023
Yisheng Joint liability
December 24, 2022 162,000 April 21, 2023 700 July 21, 2023 No Yes
Dahua guarantee
Yisheng Joint liability
December 24, 2022 162,000 April 21, 2023 910 July 21, 2023 No Yes
Dahua guarantee
Yisheng Joint liability October 27,
December 24, 2022 162,000 April 27, 2023 70 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 27,
December 24, 2022 162,000 April 27, 2023 70 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 27,
December 24, 2022 162,000 April 27, 2023 70 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 27,
December 24, 2022 162,000 April 27, 2023 38.82 No Yes
Dahua guarantee 2023
Yisheng Joint liability October 27,
December 24, 2022 162,000 April 27, 2023 16.39 No Yes
Dahua guarantee 2023
Yisheng Joint liability M arch 25,
December 24, 2022 162,000 M arch 31, 2023 1,957.6 No Yes
Dahua guarantee 2024
Total balance of guarantees
Total limits of guarantees to
actually provided to subsidiaries
subsidiaries approved at the end of 162,000 6,623.17
at the end of the reporting period
the reporting period (C3)
(C4)
Total amount of guarantees of the Company (Including the above three mentioned guarantees)
Total balance of guarantees
Total limits of guarantees approved
actually provided at the end of
at the end of the reporting period 11,802,000 6,813,304.98
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 151.96%
Company
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3. Entrust finance
There was entrust finance during the reporting period.
4. Other major contracts
There were no other major contracts during the reporting period.
XIII. Explanation of other Major Matters
1. Rongsheng Petrochemical issued a letter of guarantee to CNOOC Trading (Singapore) Pte. Ltd. on May 18,
2023 pursuant to the “Resolution on the Company’s Mutual Guarantee Amount for the Year of 2023” which was
considered and approved by the Third Extraordinary Shareholders’ General Meeting of 2022 in order to provide a
joint and several liability guarantee for a series of contracts relating to energy transactions (including but not limited
to spot and energy derivatives transactions) entered into between its subsidiary Rongsheng Petrochemical
(Singapore) Pte. Ltd. and CNOOC Trading (Singapore) Pte. Ltd. during the period from May 18, 2023 (inclusive)
to May 17, 2024 (inclusive), in the amount of US$250 million (two hundred and fifty million dollars).
2. At the end of June 2023, the Company’s subsidiary Zhejiang Petroleum & Chemical Co., Ltd. transferred
all of its 100% equity interest in its subsidiary Zhoushan Yushan Petrochemical Engineering Co., Ltd. to Zhoushan
Green Petrochemical Park Management Co.
XIV. Major Matters of the Company’s Subsidiaries
□Applicable Not applicable
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Section VII Changes in Shares and Shareholders
I. Changes in shares
1. I. Changes in shares
Unit: share
Before the change Increase or decrease (+, -) After the change
New Issue of Conversion of
Number Proportion issue of bonus provident fund Others S ubtotal Number Proportion
shares shares into shares
I. Shares subject to sales restrictions 627,243,750 6.19% 627,243,750 6.19%
1. State-owned shares
2. Shares held by state-owned legal persons
3. Shares held by other domestic capital 627,243,750 6.19% 627,243,750 6.19%
Including: Shares held by domestic legal persons
Shares held by domestic natural persons 627,243,750 6.19% 627,243,750 6.19%
4. Shares held by foreign investors
Including: Shares held by foreign legal persons
Shares held by foreign natural persons
II. Shares without sales restrictions 9,498,281,250 93.81% 9,498,281,250 93.81%
1. RM B 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%
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2023 Semi-annual Report
Reasons for share changes
□Applicable Not applicable
Approval of share changes
□Applicable Not applicable
Transfers of share changes
□Applicable Not applicable
Progress of implementation of share buybacks
At the Second Meeting of the Sixth Session of the Board of Directors of the Company held on August 4, 2022,
the Company considered and approved the “Resolution on the Buyback of the Company’s Shares”, and agreed that
the Company would use its own or self-financed funds to buy back some of the Company’s RMB ordinary shares
(A-shares) that had been issued within the territory by means of centralized bidding transactions for the purpose of
conversion of corporate bonds issued by listed companies that are convertible into shares or employee stock
ownership plans. The buyback amount shall not be less than RMB1 billion (inclusive) and not more than RMB2
billion (inclusive), the buyback price shall not be more than RMB20 per share (inclusive), and the implementation
period shall be within 12 months from the date of the Board of Directors’ consideration and approval of this buyback
program. For details, please refer to the “Announcement on the Buyback Program of the Company’s Shares”
(Announcement No. 2022-066) dated August 5, 2022 published in the Securities Times, China Securities Journal
and Juchao Information Website (http://www.cninfo.com.cn).
As of June 30, 2023, the Company’s Phase II buyback accumulated 147,059,906 shares of the Company’s
stock through dedicated securities accounts by means of centralized bidding transactions, accounting for 1.4524%
of the Company’s total share capital, with the highest transaction price at RMB15.45 per share and the lowest at
RMB10.04 per share, and the total transaction amounting to RMB1,979,998,427.34 (excluding transaction fees).
The share buyback is in compliance with the Company’s established share buyback program and the requirements
of relevant laws and regulations.
Progress in the implementation of share buyback using centralized bidding to reduce share buybacks
□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
□Applicable Not applicable
2. Changes in restricted shares
□Applicable Not applicable
II. Issuance and Listing of Securities
□Applicable Not applicable
III. Number of Shareholders and Shareholding of the Company
Unit: share
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2023 Semi-annual Report
Total number of preferred shareholders with
Total number of ordinary shareholders at the end
122,895 restored voting rights at the end of the reporting 0
of the reporting period
period (if any)
S hareholdings of ordinary shareholders holding more than 5% of shares or top 10 ordinary shareholders
Number of Increase Pledge, marking
Number of
ordinary and Number of or freezing
ordinary shares
Nature of S harehol shares held decrease ordinary shares
Name of shareholder held not subject
shareholder ding ratio at the end of during the held subject to S tatus of Num
to sales
the reporting reporting sales restrictions shares ber
restrictions
period period
Domestic non-state-
Zhejiang Rongsheng Holding Group Co., Ltd. 61.46% 6,222,789,981 0 0 6,222,789,981
owned legal person
Domestic natural
Li Shuirong 6.35% 643,275,000 0 482,456,250 160,818,750
person
Hong Kong Securities Clearing Company Limited Foreign legal person 1.61% 163,494,667 2,758,963 0 163,494,667
Domestic natural
Li Guoqing 0.95% 96,525,000 0 72,393,750 24,131,250
person
Domestic natural
Xu Yuejuan 0.95% 96,525,000 0 0 96,525,000
person
Domestic natural
Li Yongqing 0.95% 96,525,000 0 72,393,750 24,131,250
person
China Construction Bank Co., Ltd. - GF Technology
Others 0.67% 68,188,935 -5,000,000 0 68,188,935
Pioneer Hybrid Securities Investment Fund
Horizon Asset - Huaneng Trust Jiayue No. 7 Single
Fund Trust - Horizon Asset Huixin No. 43 Single Others 0.60% 60,948,287 0 0 60,948,287
Asset M anagement Plan
Domestic natural
Ni Xincai 0.47% 47,925,000 0 0 47,925,000
person
Industrial and Commercial Bank of China Co., Ltd. -
Guangfa Shuangqing Upgrade Hybrid Securities Others 0.38% 38,972,360 -8,000,000 0 38,972,360
Investment Fund
Strategic investors or general legal persons becoming the top 10 shareholders
N/A
due to rights issues
Explanation of the relationship or concerted action among the above Among the top 10 shareholders, Zhejiang Rongsheng Holding Group Co., Ltd. is the controlling shareholder
shareholders of the Company, Li Yongqing and Li Guoqing are nephews of Li Shuirong, Chairman of the Board of
Directors of Zhejiang Rongsheng Holding Group Co., Ltd., Xu Yuejuan is sister-in-law of Li Shuirong, and Ni
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2023 Semi-annual Report
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 delegating/receiving/waiving voting N/A
rights
Special explanation of the existence of a special repurchase account among the Among the top 10 shareholders, Rongsheng Petrochemical Co., Ltd. repurchased 283,142,652 shares in the
top 10 shareholders special securities account, accounting for 2.80% of the Company ’s total share capital.
S hareholdings of the top 10 shareholders not subject to sales restrictions
Number of shares without sales restrictions Class of shares
Name of shareholder
held at the end of the reporting period Class of shares Number
Zhejiang Rongsheng Holding Group Co., Ltd. 6,222,789,981 RM B ordinary shares 6,222,789,981
Hong Kong Securities Clearing Company Limited 163,494,667 RM B ordinary shares 163,494,667
Li Shuirong 160,818,750 RM B ordinary shares 160,818,750
Xu Yuejuan 96,525,000 RM B ordinary shares 96,525,000
China Construction Bank Co., Ltd. - GF Technology Pioneer Hybrid
68,188,935 RM B ordinary shares 68,188,935
Securities Investment Fund
Horizon Asset - Huaneng Trust Jiayue No. 7 Single Fund Trust - Horizon 60,948,287 RM B ordinary shares 60,948,287
Asset Huixin No. 43 Single Asset M anagement Plan
Ni Xincai 47,925,000 RM B ordinary shares 47,925,000
Industrial and Commercial Bank of China Co., Ltd. -Guangfa Shuangqing
38,972,360 RM B ordinary shares 38,972,360
Upgrade Hybrid Securities Investment Fund
Penghua Fund - China Life Insurance Co., Ltd. - Participating Insurance -
Penghua Fund State Life Stock Growth Equity Portfolio Single Asset 36,595,081 RM B ordinary shares 36,595,081
M anagement Plan (Available for Sale)
Industrial and Commercial Bank of China Co., Ltd. - Guangfa Innovation
35,805,383 RM B ordinary shares 35,805,383
Upgrade Flexible Allocation M ixed Securities Investment Fund
Among the top 10 shareholders, Zhejiang Rongsheng Holding Group Co., Ltd. is the controlling shareholder
Explanation of the associated relationship or concerted action among the top
of the Company, Xu Yuejuan is sister-in-law of Li Shuirong, Chairman of the Board of Directors of Zhejiang
10 shareholders of ordinary shares without sales restrictions and among the Rongsheng Holding Group Co., Ltd., and Ni Xincai is the brother-in-law of Li Shuirong, forming associated
top 10 shareholders of ordinary shares without sales restrictions and the top 10
relationships. In addition to the above associated relationships, the Company has no knowledge of whether
shareholders of ordinary shares
other shareholders are related to each other or act in concert.
Explanation of the top 10 ordinary shareholders’ participation in securities Zhejiang Rongsheng Holding Group Co., Ltd. holds 6,207,789,981 shares through an ordinary account and
margin trading (if any) 15,000,000 shares through a credit account.
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2023 Semi-annual Report
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
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
IV. Changes in Shareholdings of Directors, Supervisors and Senior Management
There were no changes in the shareholdings of the Company’s directors, supervisors and senior management during the reporting period, which can be found in the
2022 Annual Report.
V. Changes in Controlling Shareholders or Actual Controllers
Changes in controlling shareholders during the reporting period
There were no changes in controlling shareholders during the reporting period.
Changes in actual controllers during the reporting period
There were no changes in actual controllers during the reporting period.
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2023 Semi-annual Report
Section VIII Preferred Shares
The Company had no preferred shares during the reporting period.
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2023 Semi-annual Report
Section IX Bonds
I. Enterprise Bonds
The Company had no corporate bonds during the reporting period.
II. Corporate Bonds
1. Basic information of corporate bonds
Unit：RM B 10,000
Bond Mode of
Tradi
Name of abbre Issue Value Maturity Bond Intere repayment of
Bond code ng
bond viatio date date date balance st rate principal and
venue
n interest
The interest
shall be
2020 Public accrued per
Offering of year on a
Green simple interest
Corporate basis, instead of Shenz
20
Bonds to compound hen
Rongs April 20, April 22, April 22,
Eligible 149087.SZ 100,000 3.86% interest. The Stock
heng 2020 2020 2024
Investors by interest shall be Excha
G1
Rongsheng paid once a nge
Petrochemical year, and the
Co., Ltd. last interest
(Grade 1) shall be paid
together with
the principal.
The interest
shall be
2020 Public accrued per
Offering of year on a
Green simple interest
Corporate basis, instead of Shenz
20
Bonds to Septembe Septembe compound hen
Rongs August
Eligible 149220.SZ r 02, r 02, 100,000 3.45% interest. The Stock
heng 28, 2020
Investors by 2020 2024 interest shall be Excha
G2
Rongsheng paid once a nge
Petrochemical year, and the
Co., Ltd. last interest
(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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2023 Semi-annual Report
2. Trigger and implementation of issuer or investor option clauses and investor protection clauses
Type of
Implementation
clause
Bond of investor
Name of bond covered Option clause
abbreviation protection
under the
clause
bond
The
According to Rongsheng Petrochemical’s
Option to implementation
2020 Public Offering announcement on M arch 18, 2022, - The First
adjust conditions for
of Green Corporate Indicative Announcement on the 2022 Coupon Rate
coupon rate, the above clause
Bonds to Eligible 20 Adjustment of Green Corporate Bonds (Phase 1)
put-back of investor
Investors by Rongsheng Issued to Qualified Investors in 2020 by Rongsheng
option and protection have
Rongsheng G1 Petrochemical Co., Ltd., Rongsheng Petrochemical
accelerated not been
Petrochemical Co., has decided to lower the coupon rate of 20
settlement triggered during
Ltd. (Grade 1) Rongsheng G1 to 3.86% for the next two years (i.e.
clause the reporting
from April 22, 2022 to April 21, 2024).
period
According to Rongsheng Petrochemical’s The
Option to announcement on August 3, 2022 - The First implementation
2020 Public Offering
adjust Indicative Announcement on the Implementation conditions for
of Green Corporate
coupon rate, Measures for Coupon Rate Adjustment and Investor the above clause
Bonds to Eligible 20
put-back Buyback of Green Corporate Bonds (Phase II) of investor
Investors by Rongsheng
option and Issued to Qualified Investors in 2020 by Rongsheng protection have
Rongsheng G2
accelerated Petrochemical Co., Ltd., Rongsheng Petrochemical not been
Petrochemical Co.,
settlement has decided to lower the coupon rate of 20 triggered during
Ltd. (Grade 2)
clause Rongsheng G2 to 3.45% for the two next years the reporting
(September 2, 2022 to September 1, 2024). period
3. Adjustment of credit rating results during the reporting period
□Applicable Not applicable
4. Implementation and changes of guarantee, debt repayment plan and other debt repayment security
measures during the reporting period and the impact on interests of bond investors
Bond abbreviation 20 Rongsheng G1
Substance of credit enhancement mechanism, debt repayment plan Establishing a special account for raised funds and a special
and other debt repayment security measures account for debt repayment
Bond guarantee None
Changes in credit enhancement mechanism, debt repayment plan
and other debt repayment security measures and the impact on None
interests of bondholders (if any)
Implementation of credit enhancement mechanism, debt repayment
The special account for raised funds and the special account
plan and other debt repayment security measures during the
for debt repayment operated as agreed in the prospectus
reporting period
Bond abbreviation 20 Rongsheng G2
Substance of credit enhancement mechanism, debt repayment plan Establishing a special account for raised funds and a special
and other debt repayment security measures account for debt repayment
Irrevocable guarantee for joint and several liabilities
Bond guarantee
provided by Zhejiang Rongsheng Holding Group Co., Ltd.
Changes in credit enhancement mechanism, debt repayment plan
and other debt repayment security measures and the impact on None
interests of bondholders (if any)
70 / 187
2023 Semi-annual Report
Implementation of credit enhancement mechanism, debt repayment
The special account for raised funds and the special account
plan and other debt repayment security measures during the
for debt repayment operated as agreed in the prospectus
reporting period
III. Debt Financing Instruments of Non-financial Enterprises
During the reporting period, the Company did not have any debt financing instruments of non-financial enterprises.
IV. Convertible Corporate Bonds
The Company had no convertible 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. Key Accounting Data and Financial Indicators of the Company in Recent Two Years as of
the End of the Reporting Period
Unit：RM B 10,000
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 69.27% 73.60% -5.88%
Liability-asset ratio 73.15% 73.20% -0.05%
Quick ratio 23.68% 23.07% 2.64%
Increase/decrease in the
current reporting period
Current reporting period S ame period last year
over the same period last
year
Net profit net of non-recurring
-138,804.32 524,622.94 -126.46%
gain and loss
EBITDA total debt ratio 3.76% 11.42% -7.66%
Interest coverage ratio 0.19 3.74 -94.92%
Cash interest coverage ratio 0.51 10.38 -95.09%
EBITDA interest coverage
1.82 5.02 -63.75%
ratio
Loan repayment rate 100.00% 100.00%
Interest cover ratio 100.00% 100.00%
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2023 Semi-annual Report
Section X Financial Reports
I. Audit Report
Whether the semi-annual report is audited
The company’s semi-annual financial report is not audited.
II. Financial Statements
The financial statement notes are represented in RMB.
1. Consolidated balance sheet
Prepared by: Rongsheng Petrochemical Co., Ltd.
June 30, 2023
Unit: RM B
Item June 30, 2023 January 01, 2023
Current assets:
M onetary fund 15,188,219,124.43 18,238,774,380.21
Settlement provision
Lending funds
Trading financial assets 387,219,170.37 188,283,362.49
Derivative financial assets
Notes receivable
Accounts receivable 3,363,526,129.84 7,128,011,047.03
Accounts receivable financing 529,695,407.36 187,298,909.35
Advance payment 3,370,137,428.73 2,558,120,124.99
Premium receivables
Reinsurance receivables
Reinsurance contract reserves
receivables
Other receivables 8,124,126,700.64 4,262,221,292.97
Including: Interest receivables
Dividends receivable
Redemptory monetary capital for sale
Inventory 45,236,557,593.11 60,689,909,793.94
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 4,519,277,838.44 2,467,681,369.50
Total current assets 80,718,759,392.92 95,720,300,280.48
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2023 Semi-annual Report
Non-current assets:
Loans and advances
Creditors investment
Other creditors investment
Long-term receivables
Long-term equity investment 8,891,042,895.47 8,733,329,806.35
Investment in other equity instruments
Other non-current financial assets
Investment real estate 10,531,297.60 10,667,020.60
Fixed assets 215,083,404,817.73 222,161,110,736.65
Construction in progress 32,973,381,339.08 26,135,157,629.45
Productive biological assets
Oil & gas assets
Right-of-use assets 212,408,093.54 225,606,768.34
Intangible assets 6,457,143,332.49 5,997,771,881.12
Development expenses
Goodwill
Long-term deferred expense 42,880.57 117,159.13
Deferred income tax assets 1,366,443,593.55 429,885,619.21
Other non-current assets 3,474,088,705.82 3,206,152,216.42
Total non-current assets 268,468,486,955.85 266,899,798,837.27
Total assets 349,187,246,348.77 362,620,099,117.75
Current liabilities:
Short term loan 38,995,934,539.57 26,369,552,400.50
Borrowings from the central bank
Borrowing funds
Trading financial liabilities 549,233,668.87 588,769,711.55
Derivative financial liabilities
Notes payable 2,425,595,695.06 3,408,800,462.03
Accounts payable 40,246,839,546.30 69,079,366,976.43
Advance collections
Contract liabilities 3,989,090,507.85 3,734,262,391.81
Financial assets sold for buyback
Deposits from customers and interbank
Funds from securities trading agency
Funds from securities underwriting
agency
Payroll payable 688,558,340.81 1,022,711,102.12
Taxes payable 965,805,931.75 1,463,341,122.44
Other payables 5,932,751,765.86 3,472,604,671.47
Including: Interests payable
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2023 Semi-annual Report
Dividends payable 108,000,000.00 108,000,000.00
Handling charges and commissions
payable
Reinsurance payable
Held-for-sale liabilities
Non-current liabilities due within one
22216340629.61 20,461,387,778.93
year
Other current liabilities 514,202,837.84 458,588,848.28
Total current liabilities 116,524,353,463.52 130,059,385,465.56
Non-current liabilities:
Insurance contract reserves
Long-term loan 134520212536.23 130,962,386,969.29
Bonds payable 2,033,552,302.01 2,034,827,122.23
Including: Preferred share
Perpetual bond
Lease liabilities 204,564,668.81 213,400,396.45
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income 170,438,435.27 195,662,553.73
Deferred income tax liabilities 1,973,379,242.26 1,987,353,203.65
Other non-current liabilities
Total non-current liabilities 138,902,147,184.58 135,393,630,245.35
Total liabilities 255,426,500,648.10 265,453,015,710.91
Owner’s equity:
Share capital 10,125,525,000.00 10,125,525,000.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 10,824,524,064.73 10,822,594,513.39
Less: Treasury stock 3,978,202,364.65 3,978,202,364.65
Other comprehensive income 314,363,696.98 139,462,613.71
Special reserves
Surplus reserves 886,470,394.72 886,470,394.72
Generic risk reserves
Undistributed profits 26,662,842,402.73 29,265,833,371.48
Total owner’s equity attributable to the
44,835,523,194.51 47,261,683,528.65
parent company
M inority equity 48,925,222,506.16 49,905,399,878.19
Total owner’s equity 93,760,745,700.67 97,167,083,406.84
Total liabilities and owner’s equity 349,187,246,348.77 362,620,099,117.75
Legal representative: Li Shuirong Person in charge of accounting: Wang Yafang Person in charge of
74 / 187
2023 Semi-annual Report
the accounting firm: Zhang Shaoying
2. Balance sheet of the parent company
Unit: RM B
Item June 30, 2023 January 01, 2023
Current assets:
M onetary fund 1,289,438,127.40 710,893,292.35
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 222,163,810.04 70,794,193.95
Accounts receivable financing 15,594,344.92 49,291,497.90
Advance payment 133,123,447.54 59,646,623.00
Other receivables 674,551,215.09 674,169,712.95
Including: Interest receivables
Dividends receivable 300,000,000.00 300,000,000.00
Stock 481,185,027.35 458,506,509.44
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 89,640,529.43 80,073,156.09
Total current assets 2,905,696,501.77 2,103,374,985.68
Non-current assets:
Creditors investment
Other creditors investment
Long-term receivables
Long-term equity investment 44,137,924,006.11 43,204,610,202.35
Investment in other equity instruments
Other non-current financial assets
Investment real estate 10,531,297.60 10,667,020.60
Fixed assets 284,450,002.95 292,134,252.67
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets 1,087,988.53 1,813,314.23
Intangible assets 17159447.14 18,392,144.26
Development expenses
Goodwill
Long-term deferred expense
Deferred income tax assets
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2023 Semi-annual Report
Other non-current assets
Total non-current assets 44,451,152,742.33 43,527,616,934.11
Total assets 47,356,849,244.10 45,630,991,919.79
Current liabilities:
Short term loan 6,377,180,353.05 7,450,753,608.62
Trading financial liabilities
Derivative financial liabilities
Notes payable 900,000,000.00 700,000,000.00
Accounts payable 4,163,629,109.56 5,285,277,965.83
Advance collections
Contract liabilities 159,953,422.31 149,074,706.33
Payroll payable 34,936,199.84 46,566,384.61
Taxes payable 2,641,653.21 3,732,804.55
Other payables 8,482,371,918.80 5,268,355,508.97
Including: Interests payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one
1,536,106,190.28 885,163,049.92
year
Other current liabilities 20,793,944.90 19,379,711.82
Total current liabilities 21,677,612,791.95 19,808,303,740.65
Non-current liabilities:
Long-term loan 5,402,803,405.56 3,695,453,801.14
Bonds payable 2,033,552,302.01 2,034,827,122.23
Including: Preferred share
Perpetual bond
Lease liabilities 838,207.46 24,474.11
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income 8,876,721.64 9,434,323.24
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 7,446,070,636.67 5,739,739,720.72
Total liabilities 29,123,683,428.62 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 share
Perpetual bond
Capital reserve 11,243,393,393.54 11,243,393,393.54
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2023 Semi-annual Report
Less: Treasury stock 3,978,202,364.65 3,978,202,364.65
Other comprehensive income 44,845,554.93 44,972,616.09
Special reserves
Surplus reserves 886,470,394.72 886,470,394.72
Undistributed profits -88,866,163.06 1,760,789,418.72
Total owner’s equity 18,233,165,815.48 20,082,948,458.42
Total liabilities and owner’s equity 47,356,849,244.10 45,630,991,919.79
3. Consolidated income statement
Unit: RM B
Item 2023 S emi-annual 2022 S emi-annual
I. Gross operating income 154,525,283,752.29 147,627,593,292.44
Including: operating income 154,525,283,752.29 147,627,593,292.44
Interest income
Earned premium
Handling charge and commission income
II. Gross operating costs 157,870,551,223.95 135,812,343,157.18
Including: Operating costs 139,757,633,719.45 122,775,638,618.00
Interest expense
Handling charge and commission expenses
Surrender value
Net payments for insurance claims
Net appropriation of reserves for insurance liability
Policy dividend payment
Reinsurance costs
Taxes and surcharges 10,243,559,065.75 8,040,860,312.46
Selling expenses 100549410.04 101,947,202.32
Administrative expenses 404763431.53 413,432,771.89
R&D expenses 3,293,231,534.62 2,010,793,043.62
Financial expenses 4070814062.56 2,469,671,208.89
Including: Interest expenses 3,625,811,842.89 1,964,665,554.58
Interest income 223,711,660.97 287,403,323.38
Add: Other income 104,660,432.05 49,421,957.99
Investment income (losses expressed with “-”) 178,577,881.79 263,093,784.45
Including: return on investment in associated enterprises
239,850,471.43 203,113,377.87
and joint ventures
Gains on derecognition of financial assets measured at
amortized cost
Exchange gains (losses expressed with “-”)
Net exposure hedging gains (losses expressed with “-”)
Gains on changes in fair value (losses expressed with “-”) 310,625,655.12 44,396,337.62
77 / 187
2023 Semi-annual Report
Credit impairment loss (losses expressed with “-”) -39,633,196.86 -78,692,429.59
Loss on assets impairment (losses marked with “-”) -64,830,582.66 -28,970,610.45
Gains on disposal of assets (losses expressed with “-”) -84,509.13 -13,729,695.91
III. Operating profit (losses expressed with “-”) -2,855,951,791.35 12,050,769,479.37
Add: non-operating income 2,038,960.44 3,260,393.40
Less: non-operating expenses 849,439.19 10,239,301.34
IV Total profits (total losses expressed with “-”) -2,854,762,270.10 12,043,790,571.43
Less: income tax expenses -752,468,740.63 2,374,223,484.26
V Net profit (net losses expressed with “-”) -2,102,293,529.47 9,669,567,087.17
(I) By business continuity
1. Net profit from going concern (net losses expressed
-2,102,293,529.47 9,669,567,087.17
with “-”)
2. Net profit from discontinued operations (net losses
expressed with “-”)
(II) By ownership
1. Net profit attributable to shareholders of the parent
-1,126,633,616.55 5,366,884,515.49
company
2. M inority interest income (net losses expressed with
-975,659,912.92 4,302,682,571.68
“-”)
VI. Other comprehensive income, net of tax 168,529,741.50 83,943,911.79
After-tax net of other comprehensive income attributable
174,901,083.27 78,243,601.32
to the owners of parent company
(I) Other comprehensive income which may not be
reclassified to gain and loss
1. Re-measurement of changes in defined benefit plans
2. Other comprehensive income which may not be
transferred to gain and loss under the equity method
3. Changes in fair value of investment in other equity
instruments
4. Changes in fair value of the credit risk of the Company
5. Others
(II) Other comprehensive income which may be
174,901,083.27 78,243,601.32
reclassified to gain and loss
1. Other comprehensive income which may be transferred
-32,777,139.77 -32,374,602.55
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
207,678,223.04 110,618,203.87
statements
7. Others
Other comprehensive income attributable to minority
-6,371,341.77 5,700,310.47
shareholders, net of tax
78 / 187
2023 Semi-annual Report
VII. Total comprehensive income -1,933,763,787.97 9,753,510,998.96
Total comprehensive income attributable to owners of the
-951,732,533.28 5,445,128,116.81
parent company
Total comprehensive income attributable to minority
-982,031,254.69 4,308,382,882.15
shareholders
VIII. Earnings per share:
(I) Basic earnings per share -0.11 0.53
(II) Diluted earnings per share -0.11 0.53
Legal representative: Li Shuirong Person in charge of accounting: Wang Yafang Person in charge of
the accounting firm: Zhang Shaoying
4. Income statement of the parent Company
Unit: RM B
Item 2023 S emi-annual 2022 S emi-annual
I. Operating income 1,904,808,648.13 4,107,305,612.19
Less: operating costs 1,874,789,103.99 4,041,318,165.55
Taxes and surcharges 2,607,675.09 2,700,643.12
Selling expenses 26,880,098.49 17,459,641.66
Administrative expenses 23,716,251.23 23,698,690.45
R&D expenses 53,266,225.68 31,150,823.34
Financial expenses 403,526,675.25 319,755,089.76
Including: Interest expenses 429,963,010.74 368,521,783.77
Interest income 16,599,784.42 16,334,174.24
Add: Other income 3,974,497.63 3,700,945.72
Investment income (losses expressed with “-”) 111,928,533.98 74,552,966.18
Including: return on investment in associated enterprises and joint 146,126,783.72 116,775,484.71
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 “-”) -9,136,090.59 -1,185,903.93
Loss on assets impairment (losses marked with “-”)
Gains on disposal of assets (losses expressed with “-”) -107,408.12
II. Operating profits (losses expressed with “-”) -373,317,848.70 -251,709,433.72
Add: non-operating income 19,958.10 2,400.00
Less: non-operating expenses 338.98 3,336.13
III. Total profits (total losses expressed with “-”) -373,298,229.58 -251,710,369.85
Less: income tax expenses
IV Net profits (net losses expressed with “-”) -373,298,229.58 -251,710,369.85
(I) Net profits from going concern (net losses expressed with “ -”) -373,298,229.58 -251,710,369.85
(II) Net profits from discontinued operations (net losses expressed
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2023 Semi-annual Report
with “-”)
V Other comprehensive incomes, net of tax -127,061.16 -16,184,956.95
(I) Other comprehensive income which may not be reclassified to
gain and loss
1. Re-measurement of changes in defined benefit plans
2. Other comprehensive income which may not be transferred to gain
and loss under the equity method
3. Changes in fair value of investment in other equity instruments
4. Changes in fair value of the credit risk of the Company
5. Others
(II) Other comprehensive income which may be reclassified to gain
-127,061.16 -16,184,956.95
and loss
1. Other comprehensive income which may be transferred to gain and
-127,061.16 -16,184,956.95
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 statements
7. Others
VI. Total comprehensive incomes -373,425,290.74 -267,895,326.80
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RM B
Item 2023 S emi-annual 2022 S emi-annual
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 178,201,062,732.02 159,196,956,646.29
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
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2023 Semi-annual Report
Refunds of taxes and levies 2,445,377,522.07 2,157,182,476.09
Cash received relating to other operating activities 4,490,843,204.34 2,484,959,437.08
Subtotal of cash inflows for operating activities 185,137,283,458.43 163,839,098,559.46
Cash paid for goods purchased and services received 170,942,183,577.59 115,043,678,352.35
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 2,254,417,512.61 2,152,763,806.81
Payments of all types of taxes 10,665,209,175.36 12,408,782,000.44
Cash paid relating to other operating activities 3,554,252,623.77 3,154,804,540.26
Subtotal of cash outflows from operating activities 187,416,062,889.33 132,760,028,699.86
Net cash flow from operating activities -2,278,779,430.90 31,079,069,859.60
II. Cash flows from investing activities:
Cash received from investment recovery 1,596,493,789.84 1,893,761,792.86
Cash received from the return on investment 39,685,918.80 474,185,918.80
Net cash received from the disposal of fixed assets, intangible
164,567.04 123,351,594.29
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 310,660,628.44 146,751,092.54
Subtotal of cash inflows from investing activities 1,965,703,567.28 2,638,050,398.49
Cash paid for purchase and construction of fixed assets,
14,998,585,601.67 20,237,056,147.11
intangible assets and other long-term assets
Cash paid for investments 1,570,703,757.46 2,007,185,485.41
Net increase in pledge loans
Net cash paid for acquisition of subsidiaries and other business
units
Cash paid relating to other investing activities 226,234,663.58 25,450,726.15
Subtotal of cash outflows from investing activities 16,795,524,022.71 22,269,692,358.67
Net cash flow from investment activities -14829820455.43 -19,631,641,960.18
III. Cash flow from financing activities:
Cash received from absorption of investment 27,600,000.00
Including: cash received by subsidiaries from investments of
27,600,000.00
minority shareholders
Cash received from borrowings 69,050,797,915.91 40,241,485,050.60
Cash received relating to other financing activities 4,554,000,000.00 2,380,000,000.00
Subtotal of cash inflows from financing activities 73,604,797,915.91 42,649,085,050.60
Cash paid for repayment of debts 50,333,783,864.21 42,674,355,052.94
Cash paid for distribution of dividends and profits or payment
5,579,093,602.51 5,306,659,201.93
of interests
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2023 Semi-annual Report
Including: dividends or profits paid by subsidiaries to minority
79,500,000.00
shareholders
Cash paid relating to other financing activities 2,335,547,370.40 3,037,227,800.90
Subtotal of cash outflows from financing activities 58,248,424,837.12 51,018,242,055.77
Net cash flow from financing activities 15356373078.79 -8,369,157,005.17
IV Effect of change in exchange rate on cash and cash
-342,023,274.22 -153,906,129.55
equivalents
V Net increase in cash and cash equivalents -2,094,250,081.76 2,924,364,764.70
Add: opening balance of cash and cash equivalents 15,459,279,803.77 14,338,837,644.67
VI. Ending balance of cash and cash equivalents 13,365,029,722.01 17,263,202,409.37
6. Cash flow statement of the parent Company
Unit: RM B
Item 2023 S emi-annual 2022 S emi-annual
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 3,821,944,250.75 4,338,189,240.57
Refunds of taxes and levies 6,895,663.22 3,706,999.49
Cash received relating to other operating activities 209,329,629.24 117,737,304.75
Subtotal of cash inflows for operating activities 4,038,169,543.21 4,459,633,544.81
Cash paid for goods purchased and services received 4,382,424,862.02 4,589,047,468.86
Cash paid to and on behalf of employees 149,906,056.53 139,829,993.64
Payments of all types of taxes 9,748,781.30 31,689,288.36
Cash paid relating to other operating activities 112,878,878.35 292,165,012.19
Subtotal of cash outflows from operating activities 4,654,958,578.20 5,052,731,763.05
Net cash flow from operating activities -616,789,034.99 -593,098,218.24
II. Cash flows from investing activities:
Cash received from investment recovery
Cash received from the return on investment 39,685,918.80 544,913,908.83
Net cash received from the disposal of fixed assets, intangible
161,625.29
assets and other long-term assets
Net cash received from the disposal of subsidiaries and other
business units
Cash received relating to other investing activities
Subtotal of cash inflows from investing activities 39,847,544.09 544,913,908.83
Cash paid for purchase and construction of fixed assets,
3,944,526.39 16,207,302.41
intangible assets and other long-term assets
Cash paid for investments 827,000,000.00 60,000,000.00
Net cash paid for acquisition of subsidiaries and other business
units
Cash paid relating to other investing activities 20,000,000.00
Subtotal of cash outflows from investing activities 830,944,526.39 96,207,302.41
Net cash flow from investment activities -791,096,982.30 448,706,606.42
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2023 Semi-annual Report
III. Cash flow from financing activities:
Cash received from absorption of investment
Cash received from borrowings 8,012,734,846.32 8,417,495,719.30
Cash received relating to other financing activities 7,560,000,000.00 5,836,000,000.00
Subtotal of cash inflows from financing activities 15,572,734,846.32 14,253,495,719.30
Cash paid for repayment of debts 6,737,974,664.83 5,455,036,978.96
Cash paid for distribution of dividends and profits or payment
1,742,995,626.85 1,750,777,811.03
of interests
Cash paid relating to other financing activities 4,943,986,958.94 5,583,725,079.66
Subtotal of cash outflows from financing activities 13,424,957,250.62 12,789,539,869.65
Net cash flow from financing activities 2,147,777,595.70 1,463,955,849.65
IV Effect of change in exchange rate on cash and cash
1,223,824.25 -17,440,392.99
equivalents
V Net increase in cash and cash equivalents 741,115,402.66 1,302,123,844.84
Add: opening balance of cash and cash equivalents 510,179,880.17 464,104,910.32
VI. Ending balance of cash and cash equivalents 1,251,295,282.83 1,766,228,755.16
7. Consolidated statement of changes in owner’s equity
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2023 Semi-annual Report
Amount for the current period
Unit: RM B
2023 S emi-annual
Total
Minori
owner’
Owner’s equity attributable to the parent company ty
s
equity equity
Item
Other equity instruments Other
Less: S urplu Generi
compr S pecial Undist
S hare Preferr Perpet Capital Treasu s c risk S ubtot
ehensiv reserve ributed Others
capital ed ual Others reserve ry reserve reserve al
e s profits
shares bond stock s s
income
10,125, 10,822, 3,978,2 139,46 886,47 29,264, 47,260, 49,905, 97,165,
I. Ending balance of the
525,00 594,51 02,364. 2,613.7 0,394.7 532,74 382,90 399,87 782,77
previous year
0.00 3.39 65 1 2 3.94 1.11 8.19 9.30
Add: Changes in 1,300,6 1,300,6 1,300,6
accounting policies 27.54 27.54 27.54
Correction of errors in the
previous period
Business combinations
under the same control
Others
10,125, 10,822, 3,978,2 139,46 886,47 29,265, 47,261, 49,905, 97,167,
II. Opening balance of the
525,00 594,51 02,364. 2,613.7 0,394.7 833,37 683,52 399,87 083,40
year 0.00 3.39 65 1 2 1.48 8.65 8.19 6.84
III. Increases/decreases in - - - -
174,90
the current period 1,929,5 2,602,9 2,426,1 980,17 3,406,3
1,083.2
(decrease expressed with 51.34 90,968. 60,334. 7,372.0 37,706.
7
“-”) 75 14 3 17
- - - -
174,90
(I) Total comprehensive 1,126,6 951,73 982,03 1,933,7
1,083.2
income 33,616. 2,533.2 1,254.6 63,787.
7
55 8 9 97
(II) Capital contributed 1,929,5 1,929,5 1,853,8 3,783,4
and reduced by owners 51.34 51.34 82.66 34.00
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2023 Semi-annual Report
1. Ordinary shares
invested by the owners
2. Capital contributed by
holders of other equity
instruments
3. Amount of share-based
payment recognized in
owner’s equity
1,929,5 1,929,5 1,853,8 3,783,4
4. Others
51.34 51.34 82.66 34.00
- - -
1,476,3 1,476,3 1,476,3
(III) Profit distribution
57,352. 57,352. 57,352.
20 20 20
1. 1. Withdrawal of surplus
reserve
2. Withdrawal of generic
risk reserves
- - -
3. Distribution to owners 1,476,3 1,476,3 1,476,3
(or shareholders) 57,352. 57,352. 57,352.
20 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
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2023 Semi-annual Report
earnings
5. Other comprehensive
incomes carried forward to
retained earnings
6. Others
(V) Special reserve
180,17 180,17 141,26 321,44
1. Amount appropriated in
6,909.3 6,909.3 7,662.5 4,571.9
the current period
9 9 2 1
180,17 180,17 141,26 321,44
2. Use in the current period 6,909.3 6,909.3 7,662.5 4,571.9
9 9 2 1
(VI) Others
10,125, 10,824, 3,978,2 314,36 886,47 26,662, 44,835, 48,925, 93,760,
IV Ending balance of the
525,00 524,06 02,364. 3,696.9 0,394.7 842,40 523,19 222,50 745,70
current period
0.00 4.73 65 8 2 2.73 4.51 6.16 0.67
Amount of the previous year
Unit: RM B
2022 S emi-annual
Total
owner’
Owner’s equity attributable to the parent company
s
Minori equity
Item
Other equity instruments Other ty
Less: S urplu Generi Undist equity
Capita compr S pecial
S hare Prefer Perpet Treasu s c risk ribute S ubtot
l ehensi reserve Others
capital red ual Others ry reserve reserve d al
reserve ve s
shares bond stock s s profits
income
10,125, 10,820, - 712,69 27,192, 48,838, 46,404, 95,243,
I. Ending balance of the
525,00 095,85 12,469, 5,666.1 950,92 798,37 668,22 466,59
previous year
0.00 0.58 066.84 1 2.86 2.71 1.37 4.08
413,15 413,15 391,02 804,18
Add: Changes in accounting
2,764.3 2,764.3 9,261.2 2,025.6
policies
3 3 9 2
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2023 Semi-annual Report
Correction of errors in the
previous period
Business combinations
under the same control
Others
10,125, 10,820, - 712,69 27,606, 49,251, 46,795, 96,047,
II. Opening balance of the
525,00 095,85 12,469, 5,666.1 103,68 951,13 697,48 648,61
year
0.00 0.58 066.84 1 7.19 7.04 2.66 9.70
III. Increases/decreases in 1,106,0 3,859,5 2,831,7 4,335,9 7,167,7
78,243,
the current period (decrease 64,809. 71,060. 49,852. 82,882. 32,734.
601.32
expressed with “-”) 42 54 44 15 59
5,366,8 5,445,1 4,308,3 9,753,5
(I) Total comprehensive 78,243,
84,515. 28,116. 82,882. 10,998.
income 601.32
49 81 15 96
- -
1,106,0
(II) Capital contributed and 1,106,0 27,600, 1,078,4
64,809.
reduced by owners 64,809. 000.00 64,809.
42
42 42
1. Ordinary shares invested 27,600, 27,600,
by the owners 000.00 000.00
2. Capital contributed by
holders of other equity
instruments
3. Amount of share-based
payment recognized in
owner’s equity
- -
1,106,0
1,106,0 1,106,0
4. Others 64,809.
64,809. 64,809.
42
42 42
- - -
1,507,3 1,507,3 1,507,3
(III) Profit distribution
13,454. 13,454. 13,454.
95 95 95
1. Withdrawal of surplus
reserve
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2023 Semi-annual Report
2. Withdrawal of generic risk
reserves
- - -
3. Distribution to owners (or 1,507,3 1,507,3 1,507,3
shareholders) 13,454. 13,454. 13,454.
95 95 95
4. Others
(IV) Internal carry-forward
of owner’s equity
1. Capital reserve transferred
into capital (or share capital)
2. Surplus reserve transferred
into capital (or share capital)
3. Surplus reserves for
making up loss
4. Changes in defined benefit
plans carried forward to
retained earnings
5. Other comprehensive
incomes carried forward to
retained earnings
6. Others
(V) Special reserve
113,93 113,93 183,68
1. Amount appropriated in 69,752,
2,255.8 2,255.8 4,340.7
the current period 084.84
9 9 3
113,93 113,93 183,68
69,752,
2. Use in the current period 2,255.8 2,255.8 4,340.7
084.84
9 9 3
(VI) Others
10,125, 10,820, 1,106,0 712,69 31,465, 52,083, 51,131, 103,21
IV Ending balance of the 65,774,
525,00 095,85 64,809. 5,666.1 674,74 700,98 680,36 5,381,3
current period 534.48
0.00 0.58 42 1 7.73 9.48 4.81 54.29
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2023 Semi-annual Report
8. Statement of changes in owner’s equity of the parent company
Amount for the current period
Unit: RM B
2023 S emi-annual
Other equity instruments Other
Item Less: Undistri Total
S hare Capital compreh S pecial S urplus
Preferre Perpetua Treasury buted Others owner’s
capital Others reserve ensive reserves reserves
d shares l bond stock profits equity
income
10,125,5 11,243,3
I. Ending balance of the previous 3,978,20 44,972,6 886,470, 1,760,78 20,082,94
25,000.0 93,393.5
year 2,364.65 16.09 394.72 9,418.72 8,458.42
0 4
Add: Changes in accounting
policies
Correction of errors in the previous
period
Others
10,125,5 11,243,3
3,978,20 44,972,6 886,470, 1,760,78 20,082,94
II. Opening balance of the year 25,000.0 93,393.5
2,364.65 16.09 394.72 9,418.72 8,458.42
0 4
III. Increases/decreases in the - - -
current period (decrease expressed 127,061. 1,849,65 1,849,782
with “-”) 16 5,581.78 ,642.94
- - -
(I) Total comprehensive income 127,061. 373,298, 373,425,2
16 229.58 90.74
(II) Capital contributed and reduced
by owners
1. Ordinary shares invested by the
owners
2. Capital contributed by holders of
other equity instruments
3. Amount of share-based payment
recognized in owner’s equity
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2023 Semi-annual Report
4. Others
- -
(III) Profit distribution 1,476,35 1,476,357
7,352.20 ,352.20
1. Withdrawal of surplus reserve
- -
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
10,125,5 11,243,3 -
IV Ending balance of the current 3,978,20 44,845,5 886,470, 18,233,16
25,000.0 93,393.5 88,866,1
period 2,364.65 54.93 394.72 5,815.48
0 4 63.06
Amount of the previous year
Unit: RM B
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2023 Semi-annual Report
2022 S emi-annual
Other equity instruments Other
Item Less: Undistri Total
S hare Capital compreh S pecial S urplus
Preferre Perpetua Treasury buted Others owner’s
capital Others reserve ensive reserves reserves
d shares l bond stock profits equity
income
I. Ending balance of the previous 10,125,52 11,243,13 86,581,23 712,695,6 1,704,130 23,872,06
year 5,000.00 6,840.58 1.86 66.11 ,316.18 9,054.73
Add: Changes in accounting
policies
Correction of errors in the
previous period
Others
10,125,52 11,243,13 86,581,23 712,695,6 1,704,130 23,872,06
II. Opening balance of the year
5,000.00 6,840.58 1.86 66.11 ,316.18 9,054.73
III. Increases/decreases in the - - -
1,106,064
current period (decrease expressed 16,184,95 1,759,023 2,881,273
,809.42
with “-”) 6.95 ,824.80 ,591.17
- - -
(I) Total comprehensive income 16,184,95 251,710,3 267,895,3
6.95 69.85 26.80
-
(II) Capital contributed and 1,106,064
1,106,064
reduced by owners ,809.42
,809.42
1. Ordinary shares invested by the
owners
2. Capital contributed by holders
of other equity instruments
3. Amount of share-based payment
recognized in owner’s equity
-
1,106,064
4. Others 1,106,064
,809.42
,809.42
- -
(III) Profit distribution 1,507,313 1,507,313
,454.95 ,454.95
91 / 187
2023 Semi-annual Report
1. Withdrawal of surplus reserve
- -
2. Distribution to owners (or
1,507,313 1,507,313
shareholders)
,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
(VI) Others
-
IV Ending balance of the current 10,125,52 11,243,13 1,106,064 70,396,27 712,695,6 20,990,79
54,893,50
period 5,000.00 6,840.58 ,809.42 4.91 66.11 5,463.56
8.62
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2023 Semi-annual Report
III. Company Profile
Rongsheng Petrochemical Co., Ltd. (hereinafter referred to as the Company) is a joint-stock limited company
initiated and established on the foundation of Rongsheng Chemical Fiber Group Co., Ltd. by Zhejiang Rongsheng
Holding Group Co., Ltd., as well as natural persons including Li Shuirong, Li Yongqing, Li Guoqing, Xu Yuejuan,
Ni Xincai and Zhao Guanlong. The Company was registered on June 18, 2007 and is headquartered in Hangzhou,
Zhejiang Province. The Company now holds the Business License (Unified Social Credit Code:
91330000255693873W) issued by the Industry and Commerce Administration of Zhejiang Province, w ith a
registered capital of RMB10,125,525,000.00 and a total of 10,125,525,000.00 shares (par value: RMB1 per share),
including outstanding shares subject to sales restrictions: 627,243,750 A shares, and outstanding shares not subject
to sales restrictions: 9,498,281,250 A shares. Shares of the Company were listed for trading at Shenzhen Stock
Exchange on November 2, 2010.
The Company operates in the petrochemical fiber industry. Business scope: manufacturing and processing of
polyester yarn and chemical fabric, processing of paper products, sales of light textile raw materials and products,
hardware, chemical products and raw materials (other than hazardous chemicals and precursor chemicals), industrial
investment, warehousing services of ordinary goods (excluding dangerous goods), road cargo transportation
(operation with a valid license), import and export business. (Business activities subject to the approval shall be
carried out upon approval by relevant departments according to law.) Main products include oil refining products,
chemical products, PTA, polyester chip, polyester yarn and film, and so forth.
The financial statements were approved for publication at the eleventh meeting of the sixth session of the Board
of Directors of the Company on August 25, 2023.
The Company has included its 34 subsidiaries in the consolidated financial statements of the current period,
such as Zhejiang Shengyuan Chemical Fiber Co., Ltd., Hong Kong Sheng Hui Co., Ltd., Ningbo Yisheng Chemical
Co., Ltd., Dalian Yisheng Investment Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Hong Kong Yisheng Dahua
Petrochemical Co., Ltd., Dalian Rongxincheng Trading Co., Ltd., Zhejiang Rongtong New Materials Co., Ltd.,
Dalian Yisheng New Material Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., Ningbo Niluoshan New Energy
Co., Ltd., Zhejiang Yisheng New Materials Co., Ltd., Ningbo Rongxincheng Trading Co., Ltd., Yisheng New
Materials Trading Co., Ltd., Zhejiang Rongyi Trading Co., Ltd., Rongsheng Petrochemical (Singapore) Pte. Ltd.,
Rongtong Logistics (Singapore) Pte. Ltd., Rongsheng Petrochemical (Hong Kong) Co., Ltd., Rongsheng
International Trading Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd., Zhoushan ZPC Trading Co., Ltd., ZPC
Zheyou Technology Co., Ltd., Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd., ZPC Jintang Logistics Co.,
Ltd., Zhejiang ZPC Sales Co., Ltd., Zhoushan ZPC Sales Co., Ltd., ZPC (Zhejiang Free Trade Zone) Green
Petrochemical Research Institute Co., Ltd., Rongxiang Chemical Fiber Co., Ltd., Zhejiang Yongsheng Technology
Co., Ltd., Zhejiang Zhuosheng Trading Co., Ltd., Rongsheng International Trading (Hainan) Co., Ltd., Rongsheng
Chemical (Shanghai) Co., Ltd., Rongsheng New Materials (Zhoushan) Co., Ltd., and Rongsheng New Materials
(Taizhou) Co., Ltd., See Notes VIII and IX to these financial statements for details.
IV. Preparation Basis of Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on a going concern basis.
2. Going concern
There are no matters or circumstances that cause the Company to have serious doubts about its going concern
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2023 Semi-annual Report
ability within 12 months from the end of the reporting period.
V. Significant Accounting Policies and Accounting Estimates
Tips for specific accounting policies and estimates:
Important tips: According to the actual production and operation characteristics, the Company has formulated
specific accounting policies and accounting estimates for transactions or events such as impairment of financial
instruments, depreciation of right-of-use assets, depreciation of fixed assets, amortization of intangible assets and
revenue recognition.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Accounting Standards
for Business Enterprises, which truthfully and completely reflect the Company’s financial position, business
achievements, cash flow and other relevant information.
2. Accounting period
The accounting year is the calendar year from January 1 to December 31.
3. Operating cycle
The business cycle of the Company is short, and 12 months is taken as the liquidity division standard of assets
and liabilities.
4. Recording currency
The Company and its domestic subsidiaries adopt RMB as the recording currency, while overseas subsidiaries
such as Hong Kong Sheng Hui Co., Ltd., Hong Kong Yisheng Dahua Petrochemical Co., Ltd., Yisheng New
Materials Trading Co., Ltd., Rongsheng Petrochemical (Singapore) Private Co., Ltd., Rongtong Logistics
(Singapore) Private Co., Ltd., Rongsheng Petrochemical (Hong Kong) Co., Ltd. and Zhejiang Petroleum &
Chemical (Singapore) Private Co., Ltd. engaging in overseas operations, choose the currency in the main economic
environment where they operate as the recording currency.
5. Accounting methods for business combinations under the same control and not under the same control
1. Accounting methods for business combinations under the same control
The assets and liabilities acquired by the Company in business combination shall be measured according to the
book value of the combined party in the consolidated financial statements of the final controlling party on the date
of combination. The Company shall adjust the capital reserve according to the difference between the book value
share of the owner ’s equity of the combined party in the consolidated financial statements of the final controlling
party and the book value of the consolidated consideration paid or the total face value of the issued 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
94 / 187
2023 Semi-annual Report
assets of the acquiree obtained in the merger is recognized as goodwill. If the combined cost is less than the fair
value share of the identifiable net assets of the acquiree obtained in the combination, first, the fair value of
identifiable assets, liabilities and contingent liabilities of the acquiree and the measurement of combined cost are
reviewed. If the combined cost is still less than the fair value share of identifiable net assets of the acquiree obtained
in the merger after review, the difference is included in the current gain and loss.
6. Preparation method for consolidated financial statements
The parent company brings all subsidiaries under its control into the consolidation scope of the consolidated
financial statements. The consolidated financial statements are based on the financial statements of the parent
company and its subsidiaries and are prepared according to other related documents by the parent company in
accordance with the Accounting Standards for Business Enterprises No. 33—Consolidated Financial Statements.
7. Classification of joint arrangement and accounting methods for joint operation
1. The joint arrangement is divided into joint operation and joint venture.
2. When the Company is a party to a joint operation, the following items are recognized in relation to the share
of interest in the joint operation:
(1) Recognition of assets held individually and assets held jointly on a holding share basis;
(2) Recognition of liabilities assumed individually and liabilities assumed jointly on a holding share basis;
(3) Recognition of revenue from the sale of the Company’s share of common operation output;
(4) Recognition of income from joint operations arising from the sale of assets based on the Company’s share
of ownership;
(5) Recognition of expenses incurred separately and recognition of expenses incurred in joint operations based
on the Company’s share of ownership.
8. Recognition standard for cash and cash equivalents
Cash listed in the statement of cash flows refers to cash on hand and deposits that can be used for payment at
any time. The term “cash equivalents” refers to short-term and highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of change in value.
9. Foreign currency business and conversion of foreign currency statements
1. Translation of foreign currency business
In foreign currency transactions, the spot exchange rate at the transaction date shall be adopted at the initial
recognition to convert the foreign currency into the amount of RMB. On the balance sheet date, the monetary items
denominated in foreign currencies are translated at the spot exchange rate on the balance sheet date. The exchange
differences arising from the exchange rate are included in current gain and loss except for the exchange difference
between the principal and interest of foreign currency-specific borrowings related to the acquisition and construction
of assets eligible for capitalization. The foreign currency non-monetary items measured at historical 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
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2023 Semi-annual Report
Items of assets and liabilities in the balance sheet are translated at the spot exchange rate prevailing on the
balance sheet date. Except for the “undistributed profit” item, other items of owner ’s equity are translated at the
spot exchange rate at the transaction date. Income and expense items in the income statement are translated at the
approximate spot exchange rate at the transaction date. The converted difference in foreign currency financial
statements arising from the above translations is included in other comprehensive income.
10. Financial instruments
1. Classification of financial assets and financial liabilities
At initial recognition, financial assets are classified into the following three categories: (1) financial assets at
amortized cost; (2) financial assets at fair value through other comprehensive income; and (3) financial assets at fair
value through gain and loss.
At initial recognition, financial liabilities are classified into four categories: (1) financial liabilities at fair value
through gain and loss; (2) financial liabilities that are formed since the transfer of financial assets do not comply
with the conditions for derecognition or continue to involve in the financial assets to be transferred; (3) financial
guarantee contracts not falling under the above (1) or (2), and loan commitments not falling under the above (1) and
lending at a rate lower than the market interest rate; (4) financial liabilities at amortized cost.
2. Recognition basis, measurement methods and derecognition conditions for financial assets and financial
liabilities
(1) Recognition basis and initial measurement methods for financial assets and financial liabilities
A financial asset or a financial liability shall be recognized when the Company becomes a party to a financial
instrument contract. A financial asset or financial liability shall be measured at fair value at the initial recognition.
For financial assets or financial liabilities at fair value through gain and loss, the transaction expenses thereof shall
be directly recorded in current gain and loss. For other categories of financial assets or financial liabilities, the
related transaction expenses are included in the initial recognition amount. However, if the accounts receivable
initially recognized by the Company do not contain significant financing components or the Company does not
consider the financing components in contracts less than one year, the initial recognition shall be carried out
according to transaction price as defined in the Accounting Standards for Business Enterprises No. 14—Revenue.
(2) Subsequent measurement method for financial assets
1) Financial assets measured at amortized cost
They are subsequently measured at amortized cost by adopting the effective interest method. Gains or losses
arising from financial assets measured at amortized cost and not part of any hedging relationship are included in
current gain and loss upon derecognition, reclassification, amortization under the effective interest method or
recognition of impairment.
2) Debt instrument investments at fair value through other comprehensive income
They are subsequently measured at fair value. Interest, impairment losses or gains and exchange gains and
losses calculated by the effective interest method are included in current gain and loss, and other gains or losses are
included in other comprehensive income. Upon derecognition, the accumulated gain or loss previously included in
other comprehensive incomes is transferred from other comprehensive incomes and included in the 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
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transferred out from other comprehensive incomes and included in retained earnings.
4) Financial assets at fair value through gain and loss
They are subsequently measured at fair value, and the resulting gains or losses (including interest and dividend
income) are included in current gain and loss, unless the financial asset is part of the hedging relationship.
(3) Subsequent measurement method for financial liabilities
1) Financial liabilities at fair value through gain and loss
Such financial liabilities comprise trading financial liabilities (including derivatives of financial liabilities) and
those specified as financial liabilities at fair value through gain and loss. Such financial liabilities are subsequently
measured at fair value. Change in fair value of financial liability designated to be measured at fair value through
gain and loss due to change in the Company’s own credit risk is included in other comprehensive income, unless
the treatment will cause or expand the accounting mismatch in gain and loss. Other gains or losses arising from such
financial liabilities (including interest expenses, except changes in fair value caused by changes in the own credit
risk) are included in current gain and loss, unless the financial liabilities are part of the hedging relationship. Upon
derecognition, the accumulated gain or loss previously included in other comprehensive incomes is transferred out
from other comprehensive incomes and included in retained earnings.
2) Financial liabilities that are formed since the transfer of financial asset does not comply with the conditions
for derecognition or continue to involve in the financial assets to be transferred
They are measured pursuant to relevant provisions under Accounting Standards for Business Enterprises No.
23—Transfer of Financial Assets.
3) Financial guarantee contracts not falling under the above 1) or 2), and loan commitments not falling under
the above 1) and to lend at a rate lower than the market interest rate
A subsequent measurement shall be made after they are initially recognized according to the higher one of the
following: ① the amount of loss reserve determined in accordance with the impairment provisions of financial
instruments; ② the remaining amount after the determined accumulative amortization amount is deducted from the
initially recognized amount in accordance with relevant provisions of the Accounting Standards for Business
Enterprises No.14—Revenue.
4) Financial liabilities at amortized cost
They are measured at amortized cost under the effective interest method. Gains or losses arising from financial
liabilities measured at amortized cost and not part of any hedging relationship are included in current gain and loss
when derecognized and amortized under the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) The Company will derecognize the financial assets when one of the following conditions are met:
① The contractual rights to the cash flows from the financial asset expire;
② The transfer of such financial assets has been completed and is in line with the provisions on derecognition
of a financial asset under the Accounting Standards for Business Enterprises No. 23—Transfer of Financial Assets.
2) When the current obligations of financial liabilities (or part thereof) have been discharged, the recognition
of the financial liabilities (or part thereof) shall be terminated accordingly.
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
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assets, it shall be disposed of in the following conditions: (1) where the control over the financial asset is not retained,
the recognition of the financial asset shall be terminated, and the rights and obligations arising or retained in the
transfer shall be separately recognized as assets or liabilities; 2) where the control over the financial asset is retained,
the relevant financial asset shall be recognized according to the degree of continued involvement in the transferred
financial asset, and the relevant liabilities shall be recognized accordingly.
When the overall transfer of financial assets meets the conditions for derecognition, the difference between the
following two amounts shall be included in the current gain and loss: (1) the book value of the transferred financial
assets on the date of derecognition; (2) the sum of the consideration received from the transfer of financial assets
and the amount of the derecognized part in a cumulative amount of change in fair value which is originally included
in other comprehensive income (the financial assets involved in the transfer are debt instrument investments at fair
value through other comprehensive income). A part of financial assets is transferred, and if the transferred part meets
the conditions for derecognition entirely, the book value of the whole financial asset before transfer shall be allocated
between the derecognized part and the continued recognition part according to their relative fair values on the
transfer date, and the difference between the following two amounts shall be included in current gain and loss: (1)
the book value of the derecognized part; (2) the sum of the consideration of the derecognized part and the amount
of the corresponding derecognized part in the accumulated amount of changes in fair value originally directly
included in other comprehensive income (the financial assets involved in the transfer are debt instrument
investments at fair value through other comprehensive income).
4. Methods for determination of the fair value of financial assets and financial liabilities
When determining the fair value of related financial assets and financial liabilities, the Company adopts the
valuation technique applicable in the prevailing circumstance and supported by sufficient available data and other
information. The Company classifies the input values used by the valuation technique as the following tiers and
uses them in turns:
(1) Tier 1 input value refers to the unadjusted quotations of the same assets or liabilities in an active market
which can be obtained on the measurement date;
(2) Tier 2 input value refers to them directly or indirectly observable input value of relevant assets or liabilities
apart from Tier 1 input value, including: quotations of similar assets or liabilities on an active market; quotations of
identical or similar assets or liabilities in markets that are not active; observable input values other than quotations,
such as interest rates and yield curves that are observable during normal quotation intervals; input values for market
validation, etc.;
(3) Tier 3 input value refers to the unobservable input value of relevant assets or liabilities, including the
volatility of interest rate and stock that cannot be directly observed or cannot be verified by observable market data,
the future cash flows of the disposal obligations assumed in the business combination, financial forecasts made
using its own data, etc.
5. Impairment of financial instruments
(1) Measurement and accounting treatment of impairment of financial instruments
On the basis of expected credit loss, for financial assets at amortized cost, debt instrument investments at fair
value through other comprehensive income, contract assets, lease receivables, loan commitments classified as
financial liabilities at fair value through gain and loss, financial guarantee contracts that do not belong to financial
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
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assets purchased or generated by the Company that have suffered credit impairment are discounted according to the
credit-adjusted effective interest rate of the financial assets.
For the purchased or originated financial assets with credit impairment, the Company only recognizes the
cumulative change of expected credit loss in the whole existence period after initial recognition as the loss reserve
on the balance sheet date.
For receivables and contract assets arising from transactions as stipulated under the Accounting Standards for
Business Enterprises No. 14—Revenue that do not contain significant financing components or where the Company
does not consider the financing components in contracts not exceeding one year, the Company uses simplified
measurement methods to measure the loss reserve according to the expected credit loss amount equivalent to the
whole duration.
For financial assets other than the above measurement methods, the Company assesses whether its credit risk
has increased significantly since initial recognition on each balance sheet date. If the credit risk has increased
significantly since the initial recognition, the Company shall measure the loss reserve according to the amount of
expected credit loss during the whole existence period. If the credit risk has not increased significantly since the
initial recognition, the Company shall measure the loss reserve according to the amount of expected credit loss of
the financial instrument in the next 12 months.
The Company uses available reasonable and 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 expec ted 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 ris k characteristics.
The Company re-measures the expected credit loss on each balance sheet date, and the resulting increase or
reversal of the loss reserve is included in the current gain and loss as impairment loss or profit. For financial assets
at amortized cost, the loss provision is offset against the book value of the financial asset as given in the balance
sheet; For debt investment measured at fair value through other comprehensive income, the loss allowances are
recognized in other comprehensive income by the Company instead of offsetting the book value of the financial
assets.
(2) Financial instruments where expected credit risk is evaluated and expected credit loss is measured by
portfolio
Method for measuring
Item Basis for determining portfolios
expected credit loss
Other receivables - Loan margin portfolio
Other receivables - government receivables portfolio With reference to historical
credit loss experience and in
Other receivables - futures margin portfolio combination with the current
situation and the forecast of
Other receivables - paper goods transaction
future economic conditions,
settlement portfolio Nature of account the expected credit loss is
Other receivables - deposit and margin receivables calculated through default risk
portfolio exposure and the expected
credit loss rate in the next 12
Other receivables - reserve fund receivables portfolio months or the whole duration.
Other receivables - current account portfolio
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Other receivables - Related party dealings portfolio Related parties within the scope of
within the scope of consolidation consolidation [note]
[Note]: Related parties of the Company and within the scope of consolidated financial statements
(3) Receivables and contract assets with expected credit losses measured on a portfolio basis using a simplified
measurement approach
1) Specific portfolio and method for measuring expected credit loss
Basis for
Item determining Method for measuring expected credit loss
portfolios
Banker’s acceptance With reference to historical credit loss experience and in combination with
receivables the current situation and the forecast of future economic conditions, the
Type of notes
Commercial acceptance expected credit loss is calculated through default risk exposure and the
bill receivables 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 comparison table between the aging of accounts receivable and the expected
aging portfolio
credit loss rate of the whole duration is compiled to calculate the expected
credit loss
With reference to historical credit loss experience and in combination with
Accounts receivable -
the current situation and the forecast of future economic conditions, the
trade accounts portfolio of Nature of account
expected credit loss is calculated through default risk exposure and the
overseas subsidiaries expected credit loss rate in the whole duration
Accounts receivable - With reference to historical credit loss experience and in combination with
Related parties within
Related party dealings the current situation and the forecast of future economic conditions, the
the scope of
portfolio within the scope expected credit loss is calculated through default risk exposure and the
consolidation
of consolidation expected credit loss rate in the whole duration
2) Accounts receivable—comparison table between aging of aging portfolio and expected credit loss rate of
the whole duration
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (included, the same below) 5
1-2 year(s) 10
2-3 year(s) 30
Above 3 years 100
6. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately on the balance sheet and can not offset each other.
However, if the following conditions are met at the same time, the net amount after mutual offset shall be listed in
the balance sheet: (1) the Company has the legal right to set off the recognized amount, and such legal right is
currently enforceable; (2) the Company intends either to settle on a net basis, or to realize the financial assets and
pay off the financial liabilities simultaneously.
For the transfer of financial assets not in line with the conditions for derecognition, the Company does not
offset the transferred financial assets and liabilities.
11. Inventories
1. Classification of inventories
Inventory includes finished products or commodities held for sale in daily activities, products in the process of
production, materials and supplies consumed in the process of production or providing labor services.
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2. Valuation method for delivered inventories
Inventories delivered shall be weighted average at the end of each month.
3. Recognition basis for the net realizable value of inventories
On the balance sheet date, the inventory was measured at the lower of the cost and net realizable value.
Inventory falling price reserves were accrued based on the difference between the cost of a single inventory and the
net realizable value. The net realizable value of inventory directly used for sale will be determined by the amount
of the estimated selling price of the inventory minus the estimated sales expenses and related taxes. For inventories
that need to be processed, the net realizable value shall be determined in the normal production and operation process
by subtracting the estimated selling price of finished products produced from the estimated cost to be incurred when
completion, the estimated sales expenses and relevant taxes and fees. On the balance sheet date, if a part of the same
inventory has a contract price agreement and other parts do not have a contract price, the net realizable value shall
be determined respectively, and the corresponding cost shall be compared to determine the accrual or reversal
amount of inventory depreciation reserve respectively.
4. Inventory system of inventories
The perpetual inventory system is adopted for inventories.
5. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables
Low-value consumables are amortized using the one-off amortization method.
(2) Packaging materials
Low-value consumables are amortized using the one-off amortization method.
12. Contract 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
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the reversion date under the condition of not withdrawing the impairment provision.
13. Long-term equity investment
1. Judgment of joint control and significant influence
Joint control refers to the shared control over a certain arrangement according to the relevant agreement, and
the activities under such arrangement are subject to approval by the parties sharing the control power. Significant
influence refers to that one party has the power to participate in the decision-making of financial and operating
policies of the investee but is unable to control or jointly control these policies with other parties.
2. Determination of investment cost
(1) For business combination under the same control, where the combining party uses cash payment, transfer
of non-cash assets, assumption of debts or issuing of equity securities as combination consideration, the share of
owner’s equity of the combined party acquired in the book value of total owner ’s equity in consolidated financial
statements of the ultimate controller on the combination date shall be identified as the initial investment cost of
long-term equity investment. The difference between the initial investment cost of long-term equity investment and
the book value of the combination consideration paid or the par value of the issued shares is adjusted against the
capital reserve. If the capital reserve is not sufficient for offsetting, the adjustment is made to retained earnings.
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
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securities, the fair value of issuing equity securities is taken as the initial investment costs. If acquired through debt
restructuring, its initial investment cost shall be determined in accordance with the Accounting Standards for
Business Enterprises No. 12—Debt Restructuring; in the case of non-monetary asset exchange, the initial investment
cost shall be determined in accordance with the Accounting Standards for Business Enterprises No. 7—Exchange
of Non-monetary Assets.
3. Methods for subsequent measurement and gain and loss recognition
The long-term equity investment in the invested entity under its control will be accounted for through the cost
method; long-term equity investment in associated enterprises and joint ventures is accounted for under the equity
method.
4. Treatment methods for investments in subsidiaries through multiple deals step by step until control losing
(1) Individual financial statements
For disposal of equity, the difference between book value and the actual price of the acquisition shall be
recorded into current gain and loss. For the remaining equity, if the investor still has significant influence over the
investee or imposes joint control with other parties, it is accounted for by the equity method; In case of failure to
control, jointly control or significantly influence the investee, it shall be calculated in accordance with the provisions
of the Accounting Standards for Business Enterprises No. 22—Recognition and Measurement of Financial
Instruments.
(2) Consolidated financial statements
1) Investments in subsidiaries through multiple deals step by step until control losing and not belonging to
“package deals”.
Before losing control, the capital reserves (capital premium) are adjusted at the difference between the disposal
cost and the share in net assets of subsidiaries calculated continuously from the acquisition date or combination date
corresponding to the disposal of long-term equity investment; if the capital premium is not sufficient to be offset,
retained earnings are offset.
When losing control over a former subsidiary, the remaining equity is re-measured at the fair value on the date
of control loss. The balance of the sum of the consideration received through the disposal of equity and the fair
value of the remaining equity after deducting the entitled share of net assets continuously calculated at the original
shareholding ratio from the purchase date or the date of combination in the subsidiary is recognized in the investment
income for the period during which the control is lost, and is written off against goodwill. Other comprehensive
income related to equity investment in the former subsidiary is transferred into return on investment for the period
during which the control is lost.
2) Investments in subsidiaries through multiple deals step by step until control losing and belonging to
“package deals”
Each deal is considered as a deal for the disposal of the subsidiary and losing control of accounting treatment.
However, the difference between the disposal cost of each deal before losing the control and the entitled share of
net assets of the subsidiary corresponding to the disposal investment is recognized as other comprehensive income
in consolidated financial statements, and when the control is lost, transferred together into gain and loss for the
period during which the control is lost.
14. Investment properties
Measurement model of investment properties
Measurement by the cost method
Depreciation or amortization methods
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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.
15. 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
Housing and buildings Straight-line 5-30 5 or 10 19.00-3.00
depreciation method
M achinery and Straight-line 10-15 5 or 10 9.50-6.00
equipment depreciation method
Transportation facilities Straight-line 4-5 5 or 10 23.75-18.00
depreciation method
Other equipment Straight-line 3-10 5 or 10 31.67-9.00
depreciation method
16. 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 value.
Upon the final accounts of completion, the previous tentatively estimated value other than accrued depreciation
shall be adjusted based on actual costs.
17. 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
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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 amounts 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.
18. Intangible assets
(1) Pricing method, service life, and impairment test
1. Intangible assets include land use rights, patent rights and non-patented technology and so on, which are
initially measured according to cost.
2. Any intangible asset with a limited service life shall be amortized in a systematic and rational manner based
on the expected realization method of economic benefits related to it within its service life; where the expected
realization method cannot be confirmed reliably, the straight-line method shall be adopted. Details are as follows:
Item Amortization period (year)
Land-use right 15-50
Know-how 6-10
M anagement software 5-10
Pollution dumping right 5-20
Sea area use right 1-50
(2) Internal R&D expenditure accounting policy
The expenditure in the research stage of internal 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.
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19. 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.
20. 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.
21. Contract assets and 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 records the right to receive consideration from customers unconditionally (i.e., only depending
on the time lapses) as the receivables, and presents the right to receive consideration when goods have been
transferred to the customers, which depends on other factors other than the time lapses, as contract assets.
The Company presents the obligation to transfer goods to the customer for considerations received or
receivable from the customer as a contract liability.
22. Employee remuneration
(1) Accounting treatment method for short-term remuneration
1. Employee remuneration includes short-term remuneration, post-employment benefits, dismissal benefits and
other long-term employee benefits.
2. Accounting treatment method for short-term remuneration
The actual short-term remuneration in the accounting period when employees offer services for the Company
will be recognized as liabilities and included in current gain and loss or relevant asset cost.
(2) Accounting treatment method of post-employment benefits
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) During the accounting period when an employee provides services to the Company, the amount to be
deposited according to the defined contribution plan shall be recognized as the liability and recorded into the current
gain and loss or the cost of the relevant assets.
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(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.
(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.
23. Revenue
Accounting policies for revenue recognition and measurement
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
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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 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.
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24. 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
case of a monetary asset, the government grants 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.
25. 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
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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.
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.
26. Lease
1. The Company as lessee
On the commencement date of the lease term, the Company recognizes the lease with a lease term of no more
than 12 months and without the purchase option as a short-term lease; and recognizes the lease with lower value
when a single leased asset is brand new as a low-value asset lease. In case of a sublease or expected sublease of
lease asset, the original lease will not be deemed as a low -value asset lease.
For all short-term leases and low-value asset leases, the Company will recognize the lease payment in the
relevant asset cost or current gain and loss under the straight-line method during each period of the lease term.
In addition to the above short-term leases and low-value asset leases under simplified treatment, the Company
recognizes the right-of-use assets and lease liabilities for the lease on the commencement date of the lease term.
(1) Right-of-use assets
The right-of-use assets shall be initially measured at cost. The cost includes: 1) the initial measurement amount
of the lease liability; 2) the amount of lease payment made on or before the commencement date of lease term, net
of the relevant amount of used lease incentives (if any); 3) the initial direct expenses incurred by the lessee; 4)
expected cost to be incurred by the lessee for the purpose of disassembly and removal of lease assets, restoration of
the site where leased assets are located or restoration of leased assets to the status as agreed in lease terms.
The Company will use the straight-line method to calculate the depreciation of the right-of-use assets. Where
it is reasonably certain that the ownership of the leased assets can be obtained at the expiry of the lease term, the
leased assets shall be depreciated by the Company over its remaining service life. Where it is not reasonably certain
that the ownership of the leased assets can be obtained at the time the term of the lease expires, the Company shall
accrue the depreciation within the shorter of the lease period and the remaining service life of the leased assets.
(2) Lease liabilities
On the commencement date of the lease, the Company recognizes the present value of outstanding lease
payments as lease liabilities. In calculating the present value of the lease payments, the Company adopts the interest
rate embedded in the lease as the discount rate. If the Company is unable to determine the interest rate embedded in
the lease, it will adopt the incremental borrowing rate as the discount rate. The difference between the lease payment
and its present value is treated as unrecognized financing expenses, on which the interest expenses are recognized
at the discount rate of the present value of the lease payment during each period of the lease term and included in
the current gain and loss. The variable lease payments not included in the measurement of lease liabilities shall be
included in current gain and loss when actually incurred.
After the inception of the lease, the Company measures lease liabilities again according to the present value of
the lease payments after the change, and adjusts the book value of the right-of-use asset accordingly in case of
changes in the actual fixed payment amount, the expected payable amount of the guarantee residual value, the index
or ratio used to determine the lease payment amount, the purchase option, and evaluation result or the actual exercise
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situation of the lease renewal option or the termination option. Where the book value of the right-of-use asset has
been reduced to zero, but a further reduction is required for the lease liabilities, the remaining amount shall be
included in the current gain and loss.
2. The Company as lessor
At the inception of the lease, a lease that transfers in substance almost all risks and rewards related to the
ownership of leased assets is classified as a financing lease by the Company. Except for the financing lease, others
are treated as the operating lease.
(1) Operating lease
During each period of the lease term, the Company recognizes the lease receipts as rental income under the
straight-line method, and the initial direct costs incurred are capitalized and amortized on the same basis as the
recognition of rental income, which is included in the current gain and loss by installment. Variable lease payments
the Company acquired in connection with operating leases that are not included in the lease receipts are recognized
in the current gain and loss when actually incurred.
(2) Financing lease
At the inception of the lease, the Company recognizes the financing lease receivables based on the net lease
investment (the sum of the unsecured residual value and the present value of the lease collection not received on
the first date of the lease term and discounted at the interest rate implicit in the lease), and derecognizes the financing
lease assets. During each period of the lease term, the Company calculates and recognizes the interest income at the
interest rate implicit in the lease.
The variable lease payments obtained by the Company that are not included in the measurement of the net
lease investment are included in the current gain and loss when actually incurred.
27. Changes in significant accounting policies and accounting estimates
(1) S ignificant accounting policy changes
Approval
Contents and reasons of accounting policy changes Note
process
For lease liabilities and right-of-use assets recognized at
The M inistry of Finance issued Accounting Standards for the beginning of the earliest period for the presentation
The
Business Enterprises Interpretation No. 16, “Accounting of financial statements in which the provisions were first
Company
for Deferred Income Taxes Related to Assets and implemented that gave rise to taxable temporary
has
Liabilities Arising from Individual Transactions Not differences and deductible temporary differences as a
implement
Subject to the Initial Recognition Exemption”, which result of a single transaction to which the provisions
ed this
requires that adjustments be made to individual apply, the cumulative effect was adjusted to retained
provision
transactions subject to the provision that occur between the earnings at the beginning of the earliest period for which
since
beginning of the earliest period of the financial statements the financial statements were presented, as well as to
January 1,
in which the provision is first implemented and the date of other relevant financial statement items in accordance
2023
the first implementation of the provision. with the provisions of ASBE No. 18, “Accounting for
Income Taxes”.
The specific adjustments are as follows:
1. For the balance sheet items of December 31, 2022, the deferred tax assets affected were RMB32,682,430.07,
the deferred tax liabilities affected were RMB31,381,802.53, and the undistributed profits affected were
RMB1,300,627.54.
2. For the income statement items from January to June 2022, the income tax expenses were RMB293,115.15.
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(2) S ignificant accounting estimate changes
□Applicable Not applicable
(3) Financial statements related to adjustments to items at the beginning of the year of first-time implementation of new
accounting standards from 2023 onwards
□Applicable Not applicable
28. 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 13%、9%、6%[Note
Value-added tax taxable service income calculated according to the tax law. After deducting the
VAT paid allowed for the current period, the difference is VAT payable. 1]
Excise
Taxable sales (volume) [Note 2]
(consumption) tax
Urban maintenance
Actual payment of turnover tax 7%、5%
and construction tax
Enterprise income
Taxable income [Note 3]
tax
Property tax The remaining value after deducting 30% from the original value of the property 1.2%、12%
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in one go for ad valorem collection; the rental income for rent based collection.
Education surcharge Actual payment of turnover tax 3%
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/liter. Sales
of gasoline and naphtha are subject to consumption tax at RMB 1.52/liter.
[Note 3] Explanation for enterprise income tax rate of taxpayers at different tax rates
Name of taxpayer Income tax rate
Subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd.,
Yisheng Dahua Petrochemical Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd., Zhejiang 15%
Yongsheng Technology Co., Ltd.
The tax shall be calculated
Subsidiaries Hong Kong Sheng Hui Co., Ltd., Hong Kong Yisheng Dahua Petrochemical Co., Ltd.,
and paid according to the
Yisheng New M aterials Trading Co., Ltd., Rongsheng Petrochemical (Singapore) Private Co., Ltd.,
relevant tax rates of the
Rongtong Logistics (Singapore) Private Co., Ltd., Rongsheng Petrochemical (Hong Kong) Co., Ltd.
country and region where
and Zhejiang Petroleum & Chemical (Singapore) Private Co., Ltd.
the business is located.
Subsidiaries Rongxiang Chemical Fiber Co., Ltd., ZPC Jintang Logistics Co., Ltd., Rongsheng
International Trade (Hainan) Co., Ltd., Dalian Zhejiang Yisheng New M aterials Co., Ltd. and Zhejiang 20%
Rongyi Trading Co., Ltd., Rongsheng Chemical (Shanghai) Co., Ltd.
Other taxpayers other than the above 25%
2. Tax preference
1. According to requirements in the Notice on the Continuation of the Policy of Partial Consumption Tax on
Naphth and Fuel Oil by the Ministry of Finance, People’s Bank of China and State Taxation Administration (No.
87 [2011] of the Ministry of Finance), the Notice on Improving the Tax Refund Policy of Consumption Tax for
Ethylene Aromatic Chemical Products from Naphth and Fuel Oil by the Ministry of Finance, People’s Bank of
China, General Administration of Customs and State Taxation Administration (No. 2 [2013] of the Ministry of
Finance), the Interim Measures for the Refund (Exemption) of Consumption Tax for Naphth and Fuel Oil Used in
the Production of Ethylene and Aromatic Chemical Products by the State Taxation Administration (Announcement
of the State Administration of Taxation No. 36 of 2012) and the Announcement on the Refund of Consumption Tax
for Ethylene and Aromatic Chemical Products from Naphth and Fuel Oil by the State Administration of Taxation
and General Administration of Customs (Announcement No. 29 of 2013 of the State Administration of Taxation
and the General Administration of Customs), in the case that the production enterprise implementing the fixed-point
direct supply plan and selling naphth and fuel oil within the planned quantity limit, with a Chinese anti-
counterfeiting special VAT invoice with “DDZG” logo, it shall be exempted from consumption tax. The subsidiaries
Ningbo Zhongjin Petrochemical Co., Ltd. and Zhejiang Petroleum & Chemical Co., Ltd. are qualified for the tax
refund, and the preferential policy of refunding consumption tax paid in the procurement stage is applicable. The
subsidiaries Ningbo Zhongjin Petrochemical Co., Ltd. and Zhejiang Petroleum & Chemical Co., Ltd. implementing
the fixed-point direct supply plan meet the above conditions, and the preferential policy of exemption from
consumption tax on the sales stage is applicable.
According to the requirements of the Notice on Continuing the Increase of Refined Oil Consumption Tax by
the Ministry of Finance and State Administration of Taxation (No. 11 [2015] of the Ministry of Finance), the unit
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consumption tax of diesel, aviation kerosene and fuel oil increase from RMB 1.1/L to RMB 1.2/L, and suspension
of consumption tax continues to apply in aviation kerosene. The subsidiary Zhejiang Petroleum & Chemical Co.,
Ltd. enjoys the preferential policy of suspension of consumption tax for selling aviation kerosene.
2. According to the document Announcement of the Ministry of Finance and the State Taxation Administration
on Further Strengthening the Implementation of Policies Regarding Period-End Value-Added Tax Credit Refund
(Announcement No. 14 [2022] of the Ministry of Finance and the State Administration of Taxation) jointly issued
by the Ministry of Finance and the State Administration of Taxation, some subsidiaries of the Company meet the
relevant conditions for the tax credit refund, and the total amount of tax credit refund received in the current period
is RMB 88.3319 million.
3. According to the Announcement on Filing of High-tech Enterprises Recognized by Zhejiang Provincial
Accreditation Institutions in 2022 issued by the Office of the National High-tech Enterprise Accreditation
Management Leading Group, subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd. and Zhejiang Petroleum
& Chemical Co., Ltd. have passed the high-tech enterprise accreditation and obtained the High-tech Enterprise
Certificate numbered GR202233004307 and GR202233003797 respectively. The validity period of the recognition
is 2022-2024, and the enterprise income tax is calculated and paid at a reduced rate of 15% in the current period.
According to the Announcement on Filing the Third Batch of High-tech Enterprises Recognized by Dalian in
2021 issued by the Office of the National High-tech Enterprise Recognition Management Leading Group, the
subsidiary Yisheng Dahua Petrochemical Co., Ltd. passed the high-tech enterprise accreditation and obtained the
High-tech Enterprise Certificate with the number of GR202121200832, which is valid from 2021 to 2023. The
enterprise income tax shall be calculated and paid at the reduced tax rate of 15% in this period.
According to the Announcement on Filing the First Batch of High-tech Enterprises Recognized by Ningbo City
Authority in 2022 issued by the Office of the National High-tech Enterprise Recognition Management Leading
Group, Ningbo Zhongjin Petrochemical Co., Ltd., a subsidiary, has passed the high-tech enterprise accreditation
and obtained the High-tech Enterprise Certificate with the number of GR202233101251, with the validity period
of 2022-2024. The enterprise income tax is calculated and paid at the reduced tax rate of 15% in the current period.
According to the Announcement on the Filing of the First Batch of High-tech Enterprises Recognized in
Zhejiang Province in 2021 issued by the Office of the National High-tech Enterprise Recognition Management
Leading Group, Zhejiang Yongsheng Technology Co., Ltd., a subsidiary, has passed the recognition of a high-tech
enterprise and obtained the High-Tech Enterprise Certificate with the number GR202133009456. The recognition
period is from 2021 to 2023, and the enterprise income tax is calculated and paid at a reduced rate of 15% in this
period.
4. According to the Notice On Issues Related to the Implementation of the Preferential Catalogue of Enterprise
Income Tax for Special Equipment of Environmental Protection, the Preferential Catalogue of Enterprise I ncome
Tax for Special Equipment of Energy and Water Conservation and the Preferential Catalogue of Enterprise Income
Tax for Special Equipment of Work Safety (No. 48 [2008] of the Ministry of Finance), for the special equipment
purchased by the Company that can be used for environmental protection, energy and water conservation, safe
production and other purposes, the enterprise income tax payable of the current year can be deducted by 10% of the
equipment investment. If the tax payable of the enterprise in the current year is insufficient for credit, it can be
carried forward to the next year, and the carryforward period shall not exceed five tax years. The subsidiary Zhejiang
Petroleum & Chemical Co., Ltd. has special equipment that can be used for environmental protection, energy and
water conservation and safe production, which is qualified for the preferential policy of 10% of the investment to
credit the taxable income of the enterprise income tax in the current year.
5. According to requirements of Article 2 in the Notice of the Ministry of Finance and the State Administration
of Taxation on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small Enterprises
(No. 13 [2019] of the Ministry of Finance), If the annual taxable income of small low-profit enterprises does not
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exceed RMB 1 million (inclusive), it shall be included in the taxable income at the reduced rate of 25%, and the
enterprise income tax shall be paid at the tax rate of 20%. For the part with an annual taxable income exceeding
RMB 1 million but not exceeding RMB 3 million, 50% thereof is included in the payable income, and the enterprise
income tax is paid at the tax rate of 20%.
According to the requirements of the Announcement on the Implementation of Preferential Income Tax Policies
for Micro and Small Enterprises and Individual Industrial and Commercial Households (Announcement No. 12
[2021] of the Ministry of Finance and the State Taxation Administration), for the part of small low -profit enterprises’
annual taxable income not exceeding RMB 1 million, the enterprise income tax shall be further half-reduced on the
basis of the preferential policy stipulated in Article 2 of the Notice of the Ministry of Finance and the State Taxation
Administration on Implementing the Inclusive Tax Deduction and Exemption Policies for Micro and Small
Enterprises (No. 13 [2019] of the Ministry of Finance).
According to the requirements of the Announcement on the Further Implementation of Preferential Income Tax
Policies for Micro and Small Enterprises and Individual Industrial and Commercial Households (Announcement
No. 13 [2021] of the Ministry of Finance and the State Taxation Administration), from January 1, 2022 to December
31, 2024, for small and micro enterprises with an annual taxable income exceeding RMB 1 million but not exceeding
RMB 3 million, the enterprise income tax shall be further reduced by 25%, and the enterprise income tax shall be
paid at the tax rate of 20%. Subsidiaries Rongxiang Chemical Fiber Co., Ltd. Rongsheng International Trade
(Hainan) Co., Ltd., Dalian Yisheng New Material Co., Ltd., Zhejiang Rongyi Trade Co., Ltd. and Rongsheng
Chemical (Shanghai) Co., Ltd. meet the above requirements in this period.
6. According to the Implementation Opinions of the Office of the People’s Government of Xiaoshan District,
Hangzhou on Deepening the Reform of “Heroes per Mu” and Promoting High Quality Development (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.
VII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
Unit: RM B
Item Ending balance Beginning balance
Cash on hand 2,041,641.14 947,398.91
Bank deposit 12,695,174,133.64 14,971,568,361.00
Other monetary funds 2,491,003,349.65 3,266,258,620.30
Total 15188219124.43 18,238,774,380.21
Including: Total amount of overseas
1,379,503,007.18 2,459,323,215.90
deposits
Other notes:
Among other monetary funds at the end of the period, RMB 570.0074 million is the deposit made for issuing
bank acceptance bills, RMB 952.6963 million is the deposit made for issuing letters of credit, RMB 45.3763 million
is the deposit made for issuing the letter of guarantee, RMB 250 million is the deposit made for handling bank loans,
RMB667.8139 million is the investment funds and RMB 5.1094 million is the depos it interest accrued based on the
effective interest rate method at the end of the period.
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2. Trading financial assets
Unit: RM B
Item Ending balance Beginning balance
Financial assets at fair value through
387,219,170.37 188,283,362.49
current gain and loss
Including: derivative financial assets 387,219,170.37 188,283,362.49
Total 387,219,170.37 188,283,362.49
3. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: RM B
Ending balance Beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Category Book Book
Proport Proport
Proport value Proport value
Amount Amount ion of Amount Amount ion of
ion ion
accrual accrual
Accounts
receivable
with
provision
for bad 3,510,44 146,915, 3,363,52 7,257,16 129,149, 7,128,01
100.00% 4.19% 100.00% 1.78%
debt 1,592.36 462.52 6,129.84 0,866.85 819.82 1,047.03
reserves
based on
aging
portfolio
3,510,44 146,915, 3,363,52 7,257,16 129,149, 7,128,01
Total 100.00% 4.19% 100.00% 1.78%
1,592.36 462.52 6,129.84 0,866.85 819.82 1,047.03
Provision made for bad debt reserves based on aging portfolio: 146,915,462.52
Unit: RM B
Ending balance
Name
Book balance Bad-debt provision Proportion of accrual
Trade fund portfolio of
669,897,585.76 0.00 0.00%
overseas subsidiaries
Aging portfolio 2,840,544,006.60 146,915,462.52 5.17%
Total 3,510,441,592.36 146,915,462.52
For provision for bad debt reserves of the accounts receivable by the general model of the expected credit loss,
relevant information on bad debt reserves is disclosed based on the disclosure method of other receivables:
□Applicable Not applicable
Disclose according to aging
Unit: RM B
Aging Ending balance
Within 1 year (inclusive of 1 year) 3,462,234,284.73
116 / 187
2023 Semi-annual Report
1-2 year(s) 42,868,308.23
2-3 years 3,324,575.20
Above 3 years 2,014,424.20
Total 3,510,441,592.36
(2) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RM B
The amount of change in the current period
Beginning
Category Recovered Write- Ending balance
balance Provision Others
or returned off
Provision made for
bad debt reserves -23,420,059.71
129,149,819.82 41,185,702.41 146,915,462.51
based on aging [Note]
portfolio
Total 129,149,819.82 41,185,702.41 -23,420,059.71 146,915,462.51
[Note] Other changes were due to the transfer of 100% equity interest in Zhoushan Yushan Petrochemical
Engineering Co., Ltd by ZPC, a subsidiary of the Company, and the corresponding transfer of bad debt provision
for accounts receivable.
(3) Accounts receivable of top 5 ending balances collected by debtors
Unit: RM B
Ending balance of Ending balance of
Proportion in a total ending
Company name accounts provision for bad
balance of accounts receivable
receivable debts
Company 1 597,729,963.56 17.03% 29,886,498.18
Company 2 470,753,229.81 13.41% 23,537,661.49
Company 3 432,875,534.32 12.33% 21,643,776.72
Company 4 431,142,109.51 12.28% 21,557,105.48
Company 5 230,631,698.06 6.57%
Total 2,163,132,535.26 61.62%
4. Receivables financing
Unit: RM B
Item Ending balance Beginning balance
Banker’s acceptance 529,695,407.36 187,298,909.35
Total 529,695,407.36 187,298,909.35
Changes in receivables financing during the period and changes in fair value
□Applicable Not applicable
If the provision for impairment of receivables financing is based on the general model of expected credit losses,
disclose information about the provision for impairment by referring to the disclosure for other receivables:
117 / 187
2023 Semi-annual Report
□Applicable Not applicable
5. Advance payments
(1) Advance payments presented by age
Unit: RM B
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 3,316,027,084.91 98.39% 2,522,481,841.45 98.61%
1-2 year(s) 54,110,343.82 1.61% 35,638,283.54 1.39%
Total 3,370,137,428.73 2,558,120,124.99
(2) Top five payers with the biggest ending balances of advance payments
Proportion in balance of
Company name Book balance
advance payments
Supplier 1 1,871,773,815.42 55.54%
Supplier 2 221,866,743.50 6.58%
Supplier 3 105,805,000.00 3.14%
Supplier 4 94,920,875.86 2.82%
Supplier 5 79,242,619.30 2.35%
Subtotal 2,373,609,054.08 70.43%
6. Other receivables
Unit: RM B
Item Ending balance Beginning balance
Other receivables 8,124,126,700.64 4,262,221,292.97
Total 8,124,126,700.64 4,262,221,292.97
(1) Other receivables
1) Classification of other receivables by nature
Unit: RM B
Nature of account Ending book balance Beginning book balance
Government receivables portfolio 7,558,341,466.87 3,670,422,597.36
Paper goods transaction settlement
127,170,824.05 126,333,617.88
portfolio
Loan margin portfolio 85,908,960.00 145,908,960.00
Futures margin portfolio 196,283,951.92 272,529,752.95
Deposit receivable margin portfolio 138,257,087.23 41,469,354.87
118 / 187
2023 Semi-annual Report
Petty cash receivable, etc. 23,522,521.57 13,736,810.60
Current account portfolio 5,458,414.91 5,383,742.27
Total 8,134,943,226.55 4,275,784,835.93
2) Bad debt provision
Unit: RM B
S tage I S tage II S tage III
Expected credit loss Expected credit loss for
Bad-debt provision Expected credit Total
over the entire duration the entire duration
loss in the next 12
(without credit (credit impairment has
months
impairment) occurred)
Balance as of January 1, 2023 1,518,350.97 878,119.54 11,167,072.45 13,563,542.96
The balance as of January 1,
2023 in the current period
--Transferred to Stage II -570.00 570.00
--Transferred to Stage III -101,623.84 101,623.84
Provision in current period 96,032.87 -19,482.21 -1,629,056.22 -1,552,505.56
Other changes [Note] -1,194,511.50 -1,194,511.50
Balance as of June 30, 2023 1,613,813.85 757,583.49 8,445,128.57 10,816,525.91
[Note] Other changes were due to the transfer of 100% equity interest in Zhoushan Yushan Petrochemical
Engineering Co., Ltd by ZPC, a subsidiary of the Company, and the corresponding transfer of bad debt provision
for other accounts receivable.
Disclose according to aging
Unit: RM B
Aging Ending balance
Within 1 year (inclusive of 1 year) 7,108,896,394.64
1-2 year(s) 940,773,689.69
2-3 years 78,576,009.36
Above 3 years 6,697,132.86
Total 8,134,943,226.55
3) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RM B
The amount of change in the current period
Beginning Ending
Category Recovered Write-
balance Provision Others balance
or returned off
Other receivables with
provision for bad debts
13,563,542.96 -1,552,505.56 -1,194,511.50 10,816,525.91
based on a combination of
credit risk characteristics
119 / 187
2023 Semi-annual Report
Total 13,563,542.96 -1,552,505.56 -1,194,511.50 10,816,525.91
4) Top five debtors with the biggest ending balances of other accounts receivable
Unit: RM B
Ending
Proportion in total balance of
Company name Nature of payment Ending balance Aging ending balance of provision
other receivables for bad
debts
Tax refund
Company 1 3,447,105,065.72 Within 1 year 42.43%
receivables
Government
Company 2 2,255,438,401.15 Within 1 year 27.76%
receivables
Company 3 Grants receivables 1,745,798,000.00 Within 1 year 21.49%
Deposit guarantee
Company 4 112,830,000.00 Within 1 year 1.39%
receivable
Company 5 Grants receivables 110,000,000.00 Within 1 year 1.35%
Total 7,671,171,466.87 94.42%
5) Receivables involving government subsidies
Unit: RM B
Name of
Period- Estimated time, amount and
Company name government Ending balance
end aging basis to receive
subsidy project
Zhoushan Green Petrochemical Within 1 Expected to be recovered by
Grants receivables 1,745,798,000.00
Base M anagement Committee year December 31, 2023
Xiaoshan District Headquarters Within 1 Expected to be recovered by
Grants receivables 110,000,000.00
Economy Special Class year December 31, 2023
Total 1,855,798,000.00
7. Inventories
Whether the company is subject to disclosure requirements for the real estate industry
No
(1) Classification of inventories
Unit: RM B
Ending balance Beginning balance
Inventory Inventory
depreciation depreciation
reserves or reserves or
Item provision for provision for
Book balance Book value Book balance Book value
impairment of impairment of
contract contract
performance performance
cost cost
120 / 187
2023 Semi-annual Report
24,560,032,875 24,560,032,875 38,684,253,387 38,684,037,331
Raw materials 216,055.92
.34 .34 .46 .54
Products in 13,282,599,126 13,282,599,126 11,833,781,904 11,764,461,907
69,319,996.22
process .09 .09 .06 .84
Commodity 7,302,838,073. 7,238,007,490. 10,300,065,925 10,087,345,429
64,830,582.66 212,720,495.66
stocks 01 35 .25 .59
Work in
process - 679,248.98 679,248.98 276,865.36 276,865.36
outsourced
Low-value
155,238,852.35 155,238,852.35 153,788,259.61 153,788,259.61
consumables
45,301,388,175 45,236,557,593 60,972,166,341 60,689,909,793
Total 64,830,582.66 282,256,547.80
.77 .11 .74 .94
(2) Provision for obsolete inventory or for impairment of the cost of contract performance
Unit: RM B
Increase in the current period Decrease in the current period
Beginning Ending
Item Reversal or
balance Provision Others Others balance
write-off
Raw materials 216,055.92 216,055.92
Products in
69,319,996.22 69,319,996.22
process
Commodity 212,720,495.66 64,830,582.66 212,720,495.66 64,830,582.66
stocks
Total 282256547.80 64,830,582.66 282,256,547.80 64,830,582.66
For the specific basis for determining the net realizable value, please refer to Note V (XI) for the detailed description
of inventories in the financial statements. The decrease of inventory falling price reserves in the current period is
written off according to the consumption of products and the sales of inventory goods in the current period.
8. Other current assets
Unit: RM B
Item Ending balance Beginning balance
VAT input tax to be deducted 2,837,734,162.75 1,131,926,010.21
Business income tax pre-paid 1,681,543,675.69 1,335,755,359.29
Total 4,519,277,838.44 2,467,681,369.50
121 / 187
2023 Semi-annual Report
9. Long-term equity investment
Unit: RM B
Increase and decrease in the current period
Investment Ending
Beginning Other Ending balance of
gains or Declared
balance comprehen Provision balance provision
Investee losses Other distributio
(book Additional Reduced sive for (book for
recognized equity n of cash Others
value) investment investment income impairmen value) impairmen
under the changes dividends
adjustmen t t
equity or profits
ts
method
I. Joint ventures
II. Associated enterprise
Zhejiang Yisheng 2,691,757,6 7,545,372.6 7,361,140.2 2,706,664,1
Petrochemical Co., Ltd. 78.94 4 0 91.78
-
Ningbo Hengyi Trading 231,733,25 6,836,819.7 223,112,31
15,457,757.
Co., Ltd. 2.44 2 4.43
73
Zhejiang Xiaoshan Rural
2,006,079,8 131,295,91 11,387,579. 39,685,918. 2,109,077,4
Commercial Bank Co.,
40.15 4.20 14 80 14.69
Ltd.
Zhejiang Jurong
14,454,169. 14,460,593.
Petroleum & Chemical 6,424.02
54 56
Sales Co., Ltd.
Zhejiang Kunsheng
13,221,013. 3,945,821.1 17,166,834.
Petroleum & Chemical
56 7 73
Sales Co., Ltd.
-
Hainan Yisheng 3,302,885,7 158,527,94 3,409,887,8
51,525,859.
Petrochemical Co., Ltd. 58.56 8.32 47.77
11
Zhejiang Provincial
Petroleum Co., Ltd.
-
ZPC-ENN (Zhoushan) 12,729,631. 11,631,757.
1,097,873.3
Gas Co., Ltd. 15 76
9
122 / 187
2023 Semi-annual Report
Zhejiang Dingsheng
32,038,237. 2,361,627.2 34,399,864.
Petrochemical
54 0 74
Engineering Co., Ltd.
-
Zhejiang Derong 342,047,72 3,629,298.8 270,108,55
75,568,477.
chemicals Co. Ltd. 8.85 5 0.25
45
Zhoushan ZPC Zhougang 61,965,559. 5,792,243.7 67,911,938.
154,135.14
Tugboat Co., Ltd. 46 0 30
Ningbo Coastal Public 6,301,526.0 - 6,013,807.2
Pipe Gallery Co., Ltd. 9 287,718.81 8
Zhejiang Zhenshi Port 18,115,410. 18,607,780.
492,370.11
Service Co., Ltd. 07 18
Zhejiang Dongjiang
Green Petrochemical 2,000,000.0 2,000,000.0
Technology Innovation 0 0
Center Co., Ltd.
-
8,733,329,8 2,000,000.0 239,850,47 3,783,433.9 39,685,918. 8,891,042,8
Subtotal 48,234,897.
06.35 0 1.43 9 80 95.47
50
-
8,733,329,8 2,000,000.0 239,850,47 3,783,433.9 39,685,918. 8,891,042,8
Total 48,234,897.
06.35 0 1.43 9 80 95.47
50
123 / 187
2023 Semi-annual Report
10. Investment properties
(1) Investment real estate under the cost measurement mode
Unit: RM B
Item Houses and buildings Total
I. Original book value
1. Initial balance 14,286,632.00 14,286,632.00
2. Increase in the current period
(1) Outsourcing
(2) Transfers from inventories/fixed
assets/construction in progress
(3) Increase due to business merger
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 14,286,632.00 14,286,632.00
II. Accumulated depreciation and
accumulated amortization
1. Initial balance 3,619,611.40 3,619,611.40
2. Increase in the current period 135,723.00 135,723.00
(1) Accrual or amortization
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance 3,755,334.40 3,755,334.40
III. Provision for impairment
1. Initial balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
4. Ending balance
IV Book value
1. Closing book value 10,531,297.60 10,531,297.60
2. Beginning book value 10,667,020.60 10,667,020.60
(2) Investment real estate under the fair value method
□Applicable Not applicable
124 / 187
2023 Semi-annual Report
11. Fixed assets
Unit: RM B
Item Ending balance Beginning balance
Fixed assets 215,083,404,817.73 222,161,110,736.65
Total 215,083,404,817.73 222,161,110,736.65
(1) Fixed assets
Unit: RM B
Housing and Machinery and Transportation Other
Item Total
buildings equipment facilities equipment
I. Original book
value:
1. Initial balance 69,834,680,127.08 182,919,839,330.11 242,890,945.99 328,633,655.38 253,326,044,058.56
2. Increase in the
10,387,557.14 2,227,418,502.20 4,611,239.55 9,614,523.40 2,252,031,822.29
current period
(1) Acquisition 6,168,382.87 224,955,088.42 4,266,153.34 9,576,851.47 244,966,476.10
(2) Transfer-in from
construction in 4,219,174.27 2,002,463,413.78 345,086.21 37,671.93 2,007,065,346.19
progress
(3) Increase due to
business merger
3. Decrease in the
2,854,159,930.40 1,072,070.80 4,641,318.16 2,859,873,319.36
current period
(1) Disposal or
2,854,159,930.40 1,072,070.80 4,641,318.16 2,859,873,319.36
scrapping
4. Ending balance 66,990,907,753.82 185,146,185,761.51 242,860,867.38 338,248,178.78 252,718,202,561.49
II. Accumulated
depreciation
1. Initial balance 5,369,690,269.91 25,406,562,812.20 171,391,329.11 205,749,238.47 31,153,393,649.69
2. Increase in the
1,245,813,636.93 5,667,224,839.30 19,899,594.84 26,913,862.82 6,959,851,933.89
current period
(1) Accrual 1,245,813,636.93 5,667,224,839.30 19,899,594.84 26,913,862.82 6,959,851,933.89
3. Decrease in the
485,801,595.55 819,907.95 3,366,008.54 489,987,512.04
current period
(1) Disposal or
485,801,595.55 819,907.95 3,366,008.54 489,987,512.04
scrapping
4. Ending balance 6,129,702,311.29 31,072,967,743.55 187,924,915.41 232,663,101.29 37,623,258,071.54
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
125 / 187
2023 Semi-annual Report
(1) Disposal or
scrapping
4. Ending balance 11,539,672.22 11,539,672.22
IV Book value
1. Closing book
60,861,205,442.53 154,061,678,345.74 54,935,951.97 105,585,077.49 215,083,404,817.73
value
2. Beginning book
64,464,989,857.17 157,501,736,845.69 71,499,616.88 122,884,416.91 222,161,110,736.65
value
(2) Fixed assets with the certificate of title not transacted
Unit: RM B
Reasons for incomplete certificates of
Item Original book value
title
Houses and buildings - tank farm, supporting
7,127,767,903.92 In progress
buildings and others of ZPC
Houses and buildings -- flow shop of Zheyou
87,465,832.30 In progress
Technology Co. Ltd.
Houses and buildings -office buildings and
others of Yisheng Dahua Petrochemical Co., 197,972,690.71 In progress
Ltd.
Houses and buildings -warehouse, supporting
facilities and others of Zhejiang Yisheng New 120,229,088.05 In progress
M aterials Co., Ltd.
Houses and buildings - polymerization building
and others of Zhejiang Shengyuan Chemical 505,740,074.63 In progress
Fiber Co., Ltd.
Houses and buildings -film warehouse and
others of Zhejiang Yongsheng Technology Co. 62,725,896.38 In progress
Ltd.
Subtotal 8,101,901,485.99
12. Construction in progress
Unit: RM B
Item Ending balance Beginning balance
Construction in progress 30,786,777,964.96 24,590,757,677.89
Engineering materials 2,186,603,374.12 1,544,399,951.56
Total 32,973,381,339.08 26,135,157,629.45
(1) Construction in progress
Unit: RM B
Ending balance Beginning balance
Item Provision Provision for
Book balance for Book value Book balance Book value
impairment
impairment
1.4 million tons 14,326,345,977. 14,326,345,97 14,276,035,76 14,276,035,76
126 / 187
2023 Semi-annual Report
ethylene and 17 7.17 3.50 3.50
downstream chemical
plant (optimization of
product structure of
Phase II project)
Utilities and 10,298,131,689. 10,298,131,68 6,020,862,104. 6,020,862,104.
supporting facilities 24 9.24 28 28
Functional polyester
film expansion project
1,172,554,302.3 1,172,554,302. 967,377,971.4 967,377,971.4
with an annual output 4 34 0 0
of 250,000 tons per
year
High performance 781,998,909.4 446,159,950.4 446,159,950.4
781,998,909.47
resin project 7 8 8
High-end new
34,603,773.64 34,603,773.64 17,358,490.59 17,358,490.59
material project
Jintang New M aterial 289,228,091.3
289,228,091.35 41,739,407.97 41,739,407.97
Project 5
3,883,915,221.7 3,883,915,221. 2,821,223,989. 2,821,223,989.
Sporadic projects
5 75 67 67
30,786,777,964. 30,786,777,96 24,590,757,67 24,590,757,67
Total 96 4.96 7.89 7.89
127 / 187
2023 Semi-annual Report
(2) Changes in major construction in progress in the current period
Unit: RM B
Amount of Including:
Interest
fixed Other Percentag Accumulat Capitalize
Increase in capitalizat
Budget assets decreases e of the ed d amount
Beginning the Ending Project ion rate in S ources of
Project (RMB carried in the actual cost capitalized of interest
balance current balance progress the fund
10,000) over in the current to budget amount of in the
period current
current period (%) interest current
period
period period
1.4 million
tons ethylene
and
downstream
Bank
chemical plant 14,276,035 1,958,505, 1,908,195, 14,326,345 735,756,70 287,274,44
3,448,517 83% 85.00% 4.21% loans, other
(optimization ,763.50 258.62 044.95 ,977.17 7.49 7.16
sources
of product
structure of
Phase II
project)
Utilities and Bank
6,020,862, 4,277,269, 10,298,131 1,182,033, 162,522,11
supporting 4.21% loans, other
104.28 584.96 ,689.24 025.44 2.46
facilities sources
Functional
polyester film
expansion
Bank
project with 967,377,97 212,918,79 7,742,466. 1,172,554, 49,267,203 21,003,796
200,000 87% 90.00% 4.45% loans, other
an annual 1.40 7.34 40 302.34 .84 .14
sources
output of
250,000 tons
per year
High Bank
446,159,95 335,838,95 781,998,90 12,420,180 12,420,180
performance 1,827,550 5% 5% 4.21% loans, other
0.48 8.99 9.47 .87 .87
resin project sources
High-end new Bank
17,358,490 17,245,283 34,603,773
material 6,414,691 0.1% 0.1% 525,486.35 525,486.35 4.21% loans, other
.59 .05 .64
project sources
Jintang New 41,739,407 247,488,68 289,228,09 7,457,041. 7,457,041. Bank
7,953,857 0.4% 0.4% 3.70%
M aterial .97 3.38 1.35 66 66 loans, other
128 / 187
2023 Semi-annual Report
Project sources
Bank
Sporadic 2,821,223, 1,153,819, 91,127,834 3,883,915, 43,209,812 43,209,812
3.70% loans, other
projects 989.67 066.92 .84 221.75 .96 .96
sources
24,590,757 8,203,085, 2,007,065, 30,786,777 2,030,669, 534,412,87
Total 19,844,615
,677.89 633.26 346.19 ,964.96 458.61 7.60
129 / 187
2023 Semi-annual Report
(3) Engineering materials
Unit: RM B
Ending balance Beginning balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairme impairme
nt nt
Special
1,893,171,149.69 1,893,171,149.69 1,170,107,409.07 1,170,107,409.07
materials
Special
Equipmen 293,432,224.43 293,432,224.43 374,292,542.49 374,292,542.49
t
Total 2,186,603,374.12 2,186,603,374.12 1,544,399,951.56 1,544,399,951.56
13. Right-of-use assets
Unit: RM B
Item Housing and buildings Total
I. Original book value
1. Initial balance 290,265,617.88 290,265,617.88
2. Increase in the current period
3. Decrease in the current period
4. Ending balance 290,265,617.88 290,265,617.88
II. Accumulated depreciation
1. Initial balance 64,658,849.54 64,658,849.54
2. Increase in the current period 13,198,674.80 13,198,674.80
(1) Accrual 13,198,674.80 13,198,674.80
3. Decrease in the current period
(1) Disposal
4. Ending balance 77,857,524.34 77,857,524.34
III. Provision for impairment
1. Initial balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV Book value
1. Closing book value 212,408,093.54 212,408,093.54
2. Beginning book value 225,606,768.34 225,606,768.34
130 / 187
2023 Semi-annual Report
14. Intangible assets
(1) Intangible assets
Unit: RM B
Management Pollution S ea area use
Item Land-use right Know-how Total
software dumping right right
I. Original book
value
1. Initial 6,628,695,167.07 5,879,510.85 59,311,084.87 131,600,298.14 26,848,149.00 6,852,334,209.93
balance
2. Increase
in the current 633,300,941.70 859,186.99 339,680.26 634,499,808.95
period
(1)
633,300,941.70 859,186.99 339,680.26 634,499,808.95
Acquisition
(2)
Internal R&D
(3)
Increase due to
business merger
3. Decrease
in the current 94,178,868.60 18,215,610.00 112,394,478.60
period
(1)
94,178,868.60 18,215,610.00 112,394,478.60
Disposal
4. Ending
7,167,817,240.17 5,879,510.85 60,170,271.86 113,384,688.14 27,187,829.26 7,374,439,540.28
balance
II. Accumulated
amortization
1. Initial
705,649,558.22 4,354,353.66 22,900,082.84 105,115,117.48 16,543,216.61 854,562,328.81
balance
2. Increase
in the current 76,865,571.11 94,339.62 3,258,795.92 6,376,120.32 2,078,277.45 88,673,104.42
period
(1)
76,865,571.11 94,339.62 3,258,795.92 6,376,120.32 2,078,277.45 88,673,104.42
Accrual
3. Decrease
in the current 11,615,393.73 14,323,831.71 25,939,225.44
period
(1)
11,615,393.73 14,323,831.71 25,939,225.44
Disposal
4. Ending
770,899,735.60 4,448,693.28 26,158,878.76 97,167,406.09 18,621,494.06 917,296,207.79
balance
III. Provision
for impairment
1. Initial
balance
2. Increase
in the current
period
131 / 187
2023 Semi-annual Report
(1)
Accrual
3. Decrease
in the current
period
(1)
Disposal
4. Ending
balance
IV Book value
1. Closing
6,396,917,504.57 1,430,817.57 34,011,393.10 16,217,282.05 8,566,335.20 6,457,143,332.49
book value
2.
Beginning book 5,923,045,608.85 1,525,157.19 36,411,002.03 26,485,180.66 10,304,932.39 5,997,771,881.12
value
15. Long-term deferred expenses
Unit: RM B
Amortization
Beginning Increase in the
Item amount in the Other reductions Ending balance
balance current period
current period
Improvement
expense for fixed
assets rented 117,159.13 74,278.56 42,880.57
through operating
lease
Total 117,159.13 74,278.56 42,880.57
16. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
Unit: RM B
Ending balance Beginning balance
Item Deductible Deductible
Deferred income tax Deferred income tax
temporary temporary
assets assets
difference difference
Provision for impairment of
97,376,638.15 17,198,358.89 359,105,143.75 59,820,985.40
assets
Unrealized profits from
224,428,959.67 15,917,850.38 174,649,487.88 7,817,620.70
internal transactions
Deductible loss 8,125,301,546.06 1,252,064,896.14 1,926,924,516.34 322,308,341.68
Deferred income 156,852,441.59 24,472,310.67 186,228,230.49 30,561,612.33
Changes in fair value of
trading financial
205,289,035.92 25,402,412.92 103,171,027.61 16,689,662.09
instruments and derivative
financial instruments
Lease liabilities 203,726,461.35 31,387,764.55 213,375,922.34 32,682,430.07
Total 9,012,975,082.74 1,366,443,593.55 2,963,454,328.41 469,880,652.27
132 / 187
2023 Semi-annual Report
(2) Deferred income tax liabilities before offset
Unit: RM B
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
The parent company,
reflected at the level of
consolidated statements,
invests the loan as paid-in
capital into the subsidiary 2,180,240,858.72 328,365,181.14 2,232,554,629.20 334,883,194.38
company, which serves as
the loan interest for the
capitalization of long-term
asset construction.
Changes in fair value of
trading financial instruments
554,214,202.84 63,123,424.85 188,283,362.48 14,181,961.06
and derivative financial
instruments
One-time pre-tax deduction
10,347,277,171.26 1,552,091,575.69 10,979,341,858.26 1,646,901,278.74
of long-term assets
Right-of-use assets 211,320,105.01 29,799,060.58 223,793,454.11 31,381,802.53
Total 13,293,052,337.83 1,973,379,242.26 13,623,973,304.05 2,027,348,236.71
(3) Deferred tax assets or liabilities, net of offsets
Unit: RM B
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
1,366,443,593.55 39,995,033.06 429,885,619.21
assets
Deferred income tax
1,973,379,242.26 39,995,033.06 1,987,353,203.65
liabilities
(4) Details of unrecognized deferred tax assets
Unit: RM B
Item Ending balance Beginning balance
Deductible loss 4,230,054,377.66 4,786,039,765.48
Changes in fair value of trading financial
instruments and derivative financial 343,944,632.95 74,384,267.98
instruments
Deferred income 13,585,993.68 9,434,323.24
Provision for impairment of assets 136,725,605.16 77,404,439.05
Right-of-use assets 249,781.07 1,788,840.12
Total 4,724,560,390.52 4,949,051,635.87
133 / 187
2023 Semi-annual Report
(5) The deductible losses of unrecognized deferred income tax assets will be due in the following years
Unit: RM B
Year Ending amount Beginning amount Note
2023 792,917,664.54 795,881,505.75
2024 565,117,200.13 649,192,751.95
2025 858,446,525.60 892,628,563.63
2026 576,201,200.57 942,842,859.62
2027 1,041,468,787.46 1,098,455,315.24
2032 395,902,999.36 407,038,769.29
Total 4,230,054,377.66 4,786,039,765.48
17. Other non-current assets
Unit: RM B
Ending balance Beginning balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Prepayment
for purchase
3,062,874,289.86 3,062,874,289.86 2,794,937,800.46 2,794,937,800.46
of long-term
assets
Rental value
of silver 411,214,415.96 411,214,415.96 411,214,415.96 411,214,415.96
leased in
Total 3,474,088,705.82 3,474,088,705.82 3,206,152,216.42 3,206,152,216.42
18. Short-term borrowings
(1) Categories of short-term borrowings
Unit: RM B
Item Ending balance Beginning balance
M ortgage borrowing 200,335,687.65
Guaranteed loan 36,867,861,290.30 24,978,544,183.97
Credit borrowings 1,927,737,561.62 1,391,008,216.53
Total 38,995,934,539.57 26,369,552,400.50
19. Trading financial liabilities
Unit: RM B
Item Ending balance Beginning balance
Trading financial liabilities 549,233,668.87 588,769,711.55
Including: derivative financial liabilities 38,314,339.11 102,366,489.48
134 / 187
2023 Semi-annual Report
Including: fair value of silver leased 510,919,329.76 486,403,222.07
Total 549,233,668.87 588,769,711.55
20. Notes payable
Unit: RM B
Category Ending balance Beginning balance
Banker’s acceptance 2,425,595,695.06 3,408,800,462.03
Total 2,425,595,695.06 3,408,800,462.03
21. Accounts payable
(1) Presentation of accounts payable
Unit: RM B
Item Ending balance Beginning balance
Payable for material procurement and
30,505,465,193.29 57,051,576,225.73
operation
Payable for purchase of long-term assets 9,741,374,353.01 12,027,790,750.70
Total 40,246,839,546.30 69,079,366,976.43
22. Contract liabilities
Unit: RM B
Item Ending balance Beginning balance
Loans 3,989,090,507.85 3,734,262,391.81
Total 3,989,090,507.85 3,734,262,391.81
23. Employee remuneration payable
(1) Presentation of employee remuneration payable
Unit: RM B
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
I. Short-term remuneration 1,014,193,651.21 1,858,052,784.50 2,193,356,796.52 678,889,639.19
II. Post-employment benefits -
8,517,450.91 69,869,488.36 68,718,237.65 9,668,701.62
defined contribution plan
III. Dismissal welfare 29,277.15 29,277.15
Total 1,022,711,102.12 1,927,951,550.01 2,262,104,311.32 688,558,340.81
(2) Short-term remuneration
Unit: RM B
135 / 187
2023 Semi-annual Report
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
1. Wage, bonus, allowance and
1,006,507,629.78 1,736,653,348.57 2,072,724,935.41 670,436,042.94
subsidy
2. Employee welfare expenses 13,907,815.70 13,922,772.97 -14,957.27
3. Social insurance premium 6,762,820.48 49,537,708.44 48,998,841.25 7,301,687.67
Including: M edical insurance
6,309,552.30 43,203,602.99 43,047,093.53 6,466,061.76
premium
Work-related injury insurance
453,268.18 5,922,687.41 5,540,329.68 835,625.91
premium
Birth insurance premium 411,418.04 411,418.04
4. Housing provident fund 234,695.00 38,824,770.00 38,987,193.06 72,271.94
5. Labor union and personnel
688,505.95 19,129,141.79 18,723,053.83 1,094,593.91
education expenses
Total 1,014,193,651.21 1,858,052,784.50 2,193,356,796.52 678,889,639.19
(3) Presentation of defined contribution plan
Unit: RM B
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
1. Basic endowment 8,222,090.39 67,447,105.54 66,342,094.75 9,327,101.18
insurance
2. Unemployment
295,360.52 2,422,382.82 2,376,142.90 341,600.44
insurance premium
Total 8,517,450.91 69,869,488.36 68,718,237.65 9,668,701.62
24. Taxes payable
Unit: RM B
Item Ending balance Beginning balance
Value-added tax 24,337,058.95 406,455,280.68
Excise (consumption) tax 395,382,435.83 449,500,508.31
Enterprise income tax 198,106,213.67 248,997,237.28
Individual income tax 8,239,091.07 14,735,296.18
Urban maintenance and construction tax 103,366,435.94 64,611,829.70
Education surcharge 44,311,870.09 59,958,124.53
Local education surcharge 29,541,184.87 39,972,113.03
Property tax 2,474,042.28 25,589,744.40
Land use tax 99,710,848.30 112,480,989.03
Stamp duty 57,490,925.78 38,152,661.15
Environmental protection tax 2,845,824.97 2,886,594.15
Vehicle and vessel tax 744.00
Total 965,805,931.75 1,463,341,122.44
136 / 187
2023 Semi-annual Report
25. Other payables
Unit: RM B
Item Ending balance Beginning balance
Dividends payable 108,000,000.00 108,000,000.00
Other payables 5,824,751,765.86 3,364,604,671.47
Total 5,932,751,765.86 3,472,604,671.47
(1) Dividends payable
Unit: RM B
Item Ending balance Beginning balance
Dividends payable on ordinary shares by
108,000,000.00 108,000,000.00
subsidiaries
Total 108,000,000.00 108,000,000.00
(2) Other payables
1) Other payables listed by the nature of payment
Unit: RM B
Item Ending balance Beginning balance
Entrusted loan 787,044,725.00 989,433,904.99
Current accounts 4,075,672,124.62 1,539,513,447.19
Deposit and security 785,123,844.07 718,412,933.85
Settled but unpaid operating expenses 153,095,077.86 98,302,534.15
Others 23,815,994.31 18,941,851.29
Total 5,824,751,765.86 3,364,604,671.47
26. Non-current liabilities due within one year
Unit: RM B
Item Ending balance Beginning balance
Long-term borrowings due within one
22,195,957,020.74 20,439,097,358.80
year
Lease liabilities due within one year 20,383,608.87 22,290,420.13
Total 22,216,340,629.61 20,461,387,778.93
27. Other current liabilities
Unit: RM B
Item Ending balance Beginning balance
Output tax to be transferred 514,202,837.84 458,588,848.28
137 / 187
2023 Semi-annual Report
Total 514,202,837.84 458,588,848.28
28. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RM B
Item Ending balance Beginning balance
M ortgage and guarantee borrowings 104,321,425,232.56 104,036,600,984.70
Guaranteed loan 29,422,024,831.65 26,613,442,784.59
Credit borrowings 776,762,472.02 312,343,200.00
Total 134,520,212,536.23 130,962,386,969.29
29. Bonds payable
(1) Bonds payable
Unit: RM B
Item Ending balance Beginning balance
Green corporate bonds (second tranche) 1,010,358,988.44 1,029,195,433.12
Green corporate bonds (third tranche) 1,023,193,313.57 1,005,631,689.11
Total 2,033,552,302.01 2,034,827,122.23
(2) Increase/decrease of bonds payable: (excluding preferred stock, perpetual bond and other financial
instruments classified as financial liabilities)
Unit: RM B
Amorti
zation
Interest Repay
Beginni Issue in of
Name of Par Issue Bond Issue accrued ment in Ending
ng current premiu
bond value date period amount by par current balance
balance period ms or
value period
discoun
ts
20
1,000,00 April 20, 4 years (2 995,452, 1,029,19 19,185,2 578,315. 38,600,0 1,010,35
Rongshe
0,000.00 2020 + 2) 830.20 5,433.12 40.11 21 00.00 8,988.44
ng G1
This
tranche of
bonds has
a maturity
of 4 years,
20 with the
1,000,00 August right to 995,405, 1,005,63 17,013,6 547,925. 1,023,19
Rongshe
0,000.00 28, 2020 adjust the 660.39 1,689.11 98.64 82 3,313.57
ng G2
nominal
interest
rate by the
issuer and
sell back
by the
138 / 187
2023 Semi-annual Report
investor at
the end of
the second
year.
1,990,85 2,034,82 36,198,9 1,126,24 38,600,0 2,033,55
Total
8,490.59 7,122.23 38.75 1.03 00.00 2,302.01
30. Lease liabilities
Unit: RM B
Item Ending balance Beginning balance
Lease payments 265,856,685.59 276,960,637.05
Unacknowledged financial charges -61,292,016.78 -63,560,240.60
Total 204,564,668.81 213,400,396.45
31. Deferred income
Unit: RM B
Beginning Increase in the Decrease in the Reasons for
Item Ending balance
balance current period current period incurrence
Government
Government
195,662,553.73 5,000,000.00 30,224,118.46 170,438,435.27 subsidies related to
subsidies
assets
Total 195,662,553.73 5,000,000.00 30,224,118.46 170,438,435.27
32. Share capital
Unit: RM B
Increase and decrease of this change (+, -)
Beginning Conversion Ending
Issue of
balance New issue of of provident balance
bonus Others S ubtotal
shares fund into
shares
shares
Total number 10,125,525,0 10,125,525,0
of shares 00.00 00.00
33. Capital reserves
Unit: RM B
Increase in the Decrease in the
Item Beginning balance Ending 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 1,929,551.34 44,797,925.22
Total 10,822,594,513.39 1,929,551.34 10,824,524,064.73
Other notes, including notes to increase and decrease in the current period and its reasons:
The increase in the current period was due to other changes in the equity of associate enterprises other than net
139 / 187
2023 Semi-annual Report
profit or loss, other comprehensive income and profit distribution, and the Company’s share of these changes,
calculated on the basis of its proportionate share of ownership, was credited to capital surplus (other capital surplus).
34. Treasury stock
Unit: RM B
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Repurchase of public
3,978,202,364.65 3,978,202,364.65
shares
Total 3,978,202,364.65 3,978,202,364.65
35. Other comprehensive income
Unit: RM B
The amount incurred in the current period
Less: Less:
amount Amount
included included
in other in other
comprehe comprehe Attribu
Amount
nsive nsive Less: table to Attributable
Beginnin incurred Ending
Item income incomes income the to the
g balance before balance
previousl previousl tax parent minority
current
y and y and expense compan shareholders
income
then then s y after after tax
tax
transferr transferr tax
ed into ed into
current current
gain and retained
loss earnings
Other
comprehensive
139,462,6 168,529,7 174,901, 314,363,6
income to be -6,371,341.77
13.71 41.50 083.27 96.98
reclassified into
profit or loss
Including: other
comprehensive - -
71,764,56 - 38,987,42
income convertible 48,234,89 32,777,1
2.47 15,457,757.73 2.70
into profit or loss by 7.50 39.77
the equity method
Translation
difference of 67,698,05 216,764,6 207,678, 275,376,2
9,086,415.96
financial statements 1.24 39.00 223.04 74.28
in foreign currency
Total other 139,462,6 168,529,7 174,901, 314,363,6
comprehensive -6,371,341.77
13.71 41.50 083.27 96.98
income
36. Special reserve
Unit: RM B
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
140 / 187
2023 Semi-annual Report
Safety production
180,176,909.39 180,176,909.39
expenses
Total 180,176,909.39 180,176,909.39
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., Ltd.
37. Surplus reserve
Unit: RM B
Increase in the Decrease in the
Item Beginning balance Ending balance
current period current period
Statutory surplus
886,470,394.72 886,470,394.72
reserve
Total 886,470,394.72 886,470,394.72
38. Undistributed profits
Unit: RM B
Item Current period Prior period
Undistributed profits at the end of the prior period
29,264,532,743.94 27,192,950,922.86
before the adjustment
Total amount of undistributed profit at the beginning
1,300,627.54 413,152,764.33
of adjustment (“+” for increase, “-” for decrease)
Undistributed profit at the beginning of the period
29,265,833,371.48 27,606,103,687.19
after adjustment
Add: Net profit attributable to the owner of the
-1,126,633,616.55 3,340,817,867.85
parent company in the current period
Less: Withdrawal of statutory surplus reserve 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 26,662,842,402.73 29,265,833,371.48
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
RMB1,300,627.54.
39. Operating income and operating costs
(1) Details
Unit: RM B
Current amount incurred Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary business 154,208,585,059.79 139,557,422,671.72 146,940,663,114.45 122,345,306,791.96
Other Businesses 316,698,692.50 200,211,047.73 686,930,177.99 430,331,826.04
141 / 187
2023 Semi-annual Report
Total 154,525,283,752.29 139,757,633,719.45 147,627,593,292.44 122,775,638,618.00
(2) Breakdown of revenue generated by contracts with customers by major categories
1) Breakdown of income by commodity type
Item Amount in the current period Amount in the previous period
Revenue Cost Revenue Cost
Oil refining 55,062,107,428.82 45,444,345,713.79 46,667,559,685.68 33,534,663,244.96
Chemical 58,838,530,475.22 54,312,061,215.61 57,275,666,363.94 46,925,265,381.47
PTA 26,198,868,922.47 26,150,440,178.24 24,926,451,550.71 24,421,941,185.37
Polyester chemical fiber film 7,346,436,217.27 7,103,615,870.05 7,034,942,127.69 6,699,618,967.02
Trade and others 7,079,340,708.51 6,747,170,741.76 11,722,973,564.42 11,194,149,839.18
Total 154,525,283,752.29 139,757,633,719.45 147,627,593,292.44 122,775,638,618.00
2) Breakdown of income by the time of commodity transfer
Item Amount in the current period
Revenue recognized at a certain point of time 154,524,576,134.52
Revenue recognized at a certain period of time 707,617.77
Total 154,525,283,752.29
(3) The revenue recognized in the current period included in the opening book value of contract liabilities is
RMB3,734,262,391.81.
40. Taxes and surcharges
Unit: RM B
The amount incurred in the current Amount incurred in the previous
Item
period period
Excise (consumption) tax 9,052,613,367.30 7,112,674,964.09
Urban maintenance and construction tax 630,841,527.61 495,092,495.24
Education surcharge 270,454,545.77 212,329,803.12
Property tax 4,818,231.42 10,317,577.78
Land use tax 7,635,782.75 6,416,558.40
Vehicle and vessel tax 50,549.64 50,572.80
Stamp duty 91,225,567.44 60,056,010.68
Local education surcharge 180,304,238.66 141,553,202.07
Environmental protection tax 5,615,255.16 2,369,128.28
Total 10,243,559,065.75 8,040,860,312.46
41. Selling expenses
Unit: RM B
The amount incurred in the current Amount incurred in the previous
Item
period period
Employee remuneration 63,363,691.24 64,511,659.03
142 / 187
2023 Semi-annual Report
Sales business expenses 19,686,887.93 14,352,856.99
Others 17,498,830.87 23,082,686.30
Total 100,549,410.04 101,947,202.32
42. Administrative expenses
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Employee remuneration 185,798,003.18 190,037,722.33
Office expenses 64,671,634.46 74,000,796.84
Depreciation and amortization expenses 79,060,728.97 81,710,412.34
Insurance premium 8,308,602.47 8,281,160.58
Business entertainment expenses 8,111,405.17 5,321,480.33
Others 58,813,057.28 54,081,199.47
Total 404,763,431.53 413,432,771.89
43. R&D expenses
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Direct input 2,632,385,681.71 1,649,463,279.23
Depreciation and amortization 377,120,072.35 184,641,754.92
Personnel labor 268,013,526.46 154,877,662.59
Equipment commissioning fee 5,390,252.95 17,605,681.57
Outsourcing R&D and others 10,322,001.15 4,204,665.31
Total 3,293,231,534.62 2,010,793,043.62
44. Financial expenses
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Interest expense 3,625,811,842.89 1,964,665,554.58
Interest income 223,711,660.97 287,403,323.38
Net exchange losses/gains 466,810,926.53 633,964,624.42
Others 201,902,954.11 158,444,353.27
Total 4,070,814,062.56 2,469,671,208.89
45. Other income
Unit: RM B
143 / 187
2023 Semi-annual Report
Amount incurred in the previous
S ource of other income Current amount incurred
period
Government subsidies related to assets 14,415,451.98 14,050,227.64
Government subsidies related to income 86,535,713.78 32,618,518.38
Reimbursement of withholding tax
3,709,266.29 2,753,211.97
handling fees
Total 104,660,432.05 49,421,957.99
46. Investment income
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Long-term equity investment income
239,850,471.43 203,113,377.87
calculated by equity method
Investment income from disposal of long-
9,860,629.44
term equity investments
Investment income from disposal of
-71,232,256.81 59,881,368.85
financial instruments
Interest income from related party lending 99,037.73 99,037.73
Total 178,577,881.79 263,093,784.45
47. Gain from change in fair value
Unit: RM B
S ource of income from changes in fair Amount incurred in the previous
Current amount incurred
value period
Trading financial assets 373,456,101.92 57,651,704.12
Trading financial liabilities -62,830,446.80 -13,255,366.50
Total 310,625,655.12 44,396,337.62
48. Credit impairment loss
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Bad debt losses -39,633,196.86 -78,692,429.59
Total -39,633,196.86 -78,692,429.59
49. Asset impairment loss
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Inventory falling price loss -64,830,582.66 -28,970,610.45
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2023 Semi-annual Report
Total -64,830,582.66 -28,970,610.45
50. Income from asset disposal
Unit: RM B
Amount incurred in the previous
S ources of asset disposal income Current amount incurred
period
Income from disposal of fixed assets -84,509.13 -13,729,695.91
Total -84,509.13 -13,729,695.91
51. Non-operating income
Unit: RM B
Current amount Amount incurred in the Amount included in non-recurring
Item
incurred previous period gain and loss of the current period
Income from claims and
1,838,710.13 2,693,626.24 1,838,710.13
penalties
Others 200,250.31 566,767.16 200,250.31
Total 2,038,960.44 3,260,393.40 2,038,960.44
52. Non-operating expenses
Unit: RM B
Current amount Amount incurred in the Amount included in non-recurring
Item
incurred previous period gain and loss of the current period
External donations 10,161,000.00
Penalty expenses 38,400.00 38,400.00
Others 811,039.19 78,301.34 811,039.19
Total 849,439.19 10,239,301.34 849,439.19
53. Income tax expenses
(1) Presentation of income tax expenses
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Income tax expenses in the current period 198,063,195.10 2,337,034,839.17
Deferred income tax expenses -950,531,935.73 37,188,645.09
Total -752,468,740.63 2,374,223,484.26
(2) Adjustment of accounting profit and income tax expense
Unit: RM B
145 / 187
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Item Current amount incurred
Total profits -2,854,762,270.10
Income tax expenses at statutory/applicable rates -713,690,567.51
Impact of different tax rates applied to subsidiaries 281,783,967.62
Impact of income tax during periods prior to adjustment -9,398,709.53
Impact of non-taxable income -65,910,690.50
Impact of non-deductible costs, expenses and losses 7,632,969.47
Impact of using deductible loss on deferred income tax assets unrecognized in
-1,195,711.76
prior periods
Impact of temporary deductible difference or deductible loss on deferred 143,688,504.34
income tax assets unrecognized in the current period
Impact of R&D cost plus deduction -395,378,502.76
Income tax expense -752,468,740.63
54. Other comprehensive income
See note VII 35 of the notes to the financial statements
55. Cash flow statement items
(1) Other cash received relating to operating activities
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Temporary loan received from
1,500,000,000.00 200,000,000.00
Rongsheng Holding
Recovery of bills, letters of credit and
2,223,926,332.12 1,965,060,681.53
other deposits
Government subsidies received 498,113,367.88 43316892.47
Interest income received from bank
184,274,855.72 157,005,934.38
deposits
Recovery of operating deposit and
78,943,677.78 110,570,955.02
security deposit
Others 5,584,970.84 9,004,973.68
Total 4,490,843,204.34 2,484,959,437.08
(2) Other cash paid relating to operating activities
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Repayment of temporary loan to Rongsheng
1,500,000,000.00 200,000,000.00
Holding
Payment of bills, letters of credit and other
1,363,618,254.50 1,978,732,723.46
deposits
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Cash disbursements from administrative
247,771,882.68 780,880,736.96
expenses, R&D expenses and sales expenses
Payment of bank charges 170,964,467.88 145,819,298.69
Payment of operating deposit and security deposit 233,369,986.76 34,406,866.91
Others 38,528,031.95 14,964,914.24
Total 3,554,252,623.77 3,154,804,540.26
(3) Other cash received from investment activities
Unit: RM B
Amount incurred in the
Item Current amount incurred
previous period
Recovery of temporary loan and interest from ZPC-ENN
52,200.00 51,620.00
(Zhoushan) Gas Co., Ltd.
Recovery of bills, letters of credit and other deposits 300,801,878.44 89,926,997.54
Receipt of project deposit 9,806,550.00 56,772,475.00
Total 310,660,628.44 146,751,092.54
(4) Other cash paid relating to investment activities
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Payment of bills, letters of credit and
204,461,781.53 25,450,726.15
other deposits
Payment of project related security
21,772,882.05
deposit
Total 226,234,663.58 25,450,726.15
(5) Cash received from other financing activities
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Temporary loan received from 3,756,000,000.00 1,580,000,000.00
Rongsheng Holding
Entrusted loan received from Zhejiang
548,000,000.00 750,000,000.00
Yisheng
Recovery of loan deposit 250,000,000.00 50,000,000.00
Total 4,554,000,000.00 2,380,000,000.00
(6) Other cash paid for financing activities
Unit: RM B
Amount incurred in the previous
Item Current amount incurred period
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Repayment of temporary loan to
1,281,510,402.57 1,113,795,788.33
Rongsheng Holding
Entrusted loan and interest repaid to
771,887,121.59 775,732,134.99
Zhejiang Yisheng
Buy back shares 1,106,064,809.42
Payment of loan security 250,000,000.00 15,545,440.00
Payment of financing fees 15,979,886.75 7,858,776.72
Expenditure for right-to-use assets 16,169,959.49 18,230,851.44
Total 2,335,547,370.40 3,037,227,800.90
56. Supplementary information of Cash Flow Statement
(1) Supplementary information of Cash Flow Statement
Unit: RM B
Amount for the Amount of prior
S upplementary information
current period period
1. Converting net profit into cash flow from operating activities:
Net profit -2,102,293,529.47 9,669,567,087.17
Add: Provision for impairment of assets 104,463,779.52 107,663,040.04
Fixed assets depreciation, oil and gas assets depletion, productive biological
6,694,859,530.55 4,719,817,742.41
assets depreciation
Depreciation of right-of-use assets 13,198,674.80 14,506,107.79
Amortization of intangible assets 73,419,072.52 78,719,312.45
Amortization of long-term deferred expenses 74,278.56 2,400,152.84
Loss on disposing fixed assets, intangible assets and other long-term assets 84,509.13 13,729,695.91
(gains expressed with “-”)
Losses on disposal of fixed assets (gains expressed with “-”)
Loss from changes in fair value (gains expressed with “-”) -310,625,655.12 -44,396,337.62
Financial expenses (gains expressed with “-”) 4,061,769,909.71 2,548,734,133.43
Loss from investment (gains expressed with “-”) -218,545,353.28 -263,093,784.45
Reduction of deferred income tax assets (increase expressed with “ -”) -946,536,989.23 -30,514,884.54
Increase of deferred income tax liabilities (decrease expressed with “ -”) -13,973,961.39 -7,259,990.85
Decrease in inventories (increase expressed with “-”) 15,390,669,640.75 644,082,4631.39
Decrease of operating receivables (increase expressed with “-”) -3,022,908,454.07 -20,013,027,205.49
Increase in operating payables (decrease expressed with “-”) -22,002,434,883.88 27,841,400,159.12
Others
Net cash flow from operating activities -2,278,779,430.90 31,079,069,859.60
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:
148 / 187
2023 Semi-annual Report
Ending balance of cash 13,365,029,722.01 17,263,202,409.37
Less: Beginning balance of cash 15,459,279,803.77 14,338,837,644.67
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -2,094,250,081.76 2,924,364,764.70
(2) Composition of cash and cash equivalents
Unit: RM B
Item Ending balance Beginning balance
I. Cash 13,365,029,722.01 15,459,279,803.77
Including: cash on hand 2,041,641.14 947,398.91
Bank deposits available for payment at
12,695,174,133.64 14,971,568,361.00
any time
Other monetary funds available for
667,813,947.23 486,764,043.86
payment at any time
II. Cash equivalents
III. Ending balance of cash and cash
13,365,029,722.01 15,459,279,803.77
equivalents
57. Assets with restricted ownership or use rights
Unit: RM B
Item Carrying value at the end of the period Reasons for restrictions
See note to monetary funds in the notes
M onetary fund 1,823,189,402.42
to the financial statements for details
Bank loan mortgage, letter of credit
Fixed assets 213,092,536,178.09
mortgage
Intangible assets 4,893,798,769.47 Bank loan mortgage
Construction in progress 25,219,264,761.29 Bank loan mortgage
Pledged for issuing bank acceptance bills
Accounts receivable financing 11,038,301.85
as collateral
Total 245,039,827,413.12
58. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
Unit: RM B
Ending balance in foreign
Item Translation rate Ending balance in RMB
currencies
M onetary fund
Including: USD 329,080,263.60 7.2258 2,377,868,168.77
EUR 4,632,465.01 7.8771 36,490,390.15
HKD 361,177.65 0.92198 332,998.57
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SGD 2,879,806.82 5.3442 15,390,263.61
GBP 2.70 9.1432 24.69
Accounts receivable
Including: USD 208,748,378.12 7.2258 1,508,374,030.64
EUR
HKD
Other receivables
Including: USD 27,038,764.33 7.2258 195,376,703.29
HKD 12,487,496.00 0.92198 11,513,221.56
Short term loan
Including: USD
EUR
Accounts payable
Including: USD 481,424,416.51 7.2258 3,478,676,548.82
EUR 72,767,037.28 7.8771 573,193,229.36
Other payables
Including: USD 17,741,664.45 7.2258 128,197,718.98
Non-current liabilities due
within one year
Including: USD 48,000,000.00 7.2558 348,278,400.00
Long-term loan
Including: USD 242,000,000.00 7.2558 1,755,903,600.00
EUR 63,507,048.12 7.8771 500,251,368.75
HKD
Prepayment
Including: USD 696,227.90 7.2258 5,030,803.56
EUR 4,700,271.68 7.8771 37,024,510.05
(2) Description of the overseas operating entity, including important overseas operating entity, shall disclose
its main overseas business place, recording currency and the basis for selection, and shall also disclose
reasons in the case of changes in recording currency.
Place of Recording
Company name S election basis
registration currency
Hong Kong Sheng Hui Co., Ltd. Hong Kong, China
Hong Kong Yisheng Dahua Petrochemical Co.,
Hong Kong, China
Ltd.
Yisheng New M aterials Trading Co., Ltd. Hong Kong, China
General settlement currency
Rongsheng Petrochemical (Singapore) Pte. Ltd. Singapore USD
for company operation
Zhejiang Petroleum & Chemical (Singapore) Pte.
Singapore
Ltd.
Rongtong Logistics (Singapore) Pte. Ltd. Singapore
Rongsheng Petrochemical (Hong Kong) Co., Ltd. Hong Kong, China
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59. Government grants
(1) Basics of government grants
Unit: RM B
Amounts included in
Category Amount Presented items
current gain and loss
Government grants related to assets 14,415,451.98 Deferred income 14,415,451.98
Income-related government grants for
compensation for incurred relevant costs 86,535,713.78 Deferred income 86,535,713.78
or losses
151 / 187
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(2) Return of government grants
□Applicable Not applicable
(3) Breakdown of government grants
1) Government grants related to assets
New grants
Amortization
in the Presented
in the
Beginning current Other items of
current Ending
deferred period (new decreases in amortization
Item period deferred Description of document number
income in entry in the current in the
(amortization income
2023 deferred period current
of deferred
income period
income)
account)
Construction funds for Funds allocated by the Finance Bureau of Dalian
infrastructure supporting 41,464,285.30 1,842,857.16 39,621,428.14 Other income Jinzhou New Area for supporting project construction
projects of a wharf, sewage treatment and other infrastructure
Interest subsidy fund for Interest subsidy fund for PTA project loan granted by
6,726,329.94 2,690,529.12 4,035,800.82 Other income
PTA project loan Dalian Finance Bureau
Subsidy for closed seawater Subsidy for closed seawater cooling system project of
cooling system project of science and technology program granted by the
3,416,516.31 1,366,672.68 2,049,843.63 Other income
science and technology Finance Bureau of Dalian Economic and
program Technological Development Zone
Subsidy fund for industrial
Funds allocated by Hangzhou M unicipal Finance
technological
10,269,834.14 1,003,305.90 9,266,528.24 Other income Bureau and Xiaoshan District Finance Bureau for
transformation projects in
industrial technological transformation projects
Xiaoshan District
Financial subsidy fund for land change allocated by
Financial subsidy for land
8,195,296.46 124,485.48 8,070,810.98 Other income the Finance Bureau of Dalian Economic and
change
Technological Development Zone
Special subsidy allocated by the Dalian Finance
Special fund for 1.2 million Bureau for the “fiber grade purified terephthalic acid
833,332.60 333,333.36 499,999.24 Other income
tons of PTA major project (PTA) project with an annual output of 1.2 million
tons”
152 / 187
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Support fund for mother Subsidy allocated by the Finance Bureau of Dalian
solid recovery system Economic and Technological Development Zone for
project of PTA refining unit 601,666.85 240,666.66 361,000.19 Other income the “mother solid recovery system project of PTA
within the science and refining unit” within the science and technology
technology program program
Interest subsidy for
Interest subsidy for supporting industrial projects in
supporting industrial
the “five points and one line” coastal economic belt
projects in the “five points
600,000.00 240,000.00 360,000.00 Other income park of Liaoning Province allocated by the Finance
and one line” coastal
Bureau of Dalian Economic and Technological
economic belt park of
Development Zone
Liaoning Province
Subsidy funds allocated by Xiaoshan District Finance
90,000 tons of PTT project 1,391,600.00 149,100.00 1,242,500.00 Other income Bureau for the project of PTT new chemical fiber with
an annual output of 90,000 tons
Subsidy for 100,000 tons of
Funds allocated by Hangzhou M unicipal Bureau of
environmental protection
2,961,766.48 306,389.52 2,655,376.96 Other income Finance and Xiaoshan District Bureau of Finance for
and healthy multifunctional
enterprise technological transformation projects
fiber project
Subsidy fund for key Funding and subsidized interest rate allocated by
industrial technological 57,230.51 28,115.88 29,114.63 Other income Hangzhou M unicipal Bureau of Finance for enterprise
transformation projects technological transformation
Funding and subsidized
Funds allocated by Xiaoshan District Finance Bureau
interest rate for enterprise
50,714.31 25,357.14 25,357.17 Other income for key industrial technological transformation
technological
projects
transformation
Reply of Zhejiang Provincial Development and
National special subsidy Reform Commission on the approval of 40 M TPA
40,310,111.08 1,691,333.34 38,618,777.74 Other income
fund Refining and Chemical Integration Project for
Zhejiang Petroleum & Chemical Co., Ltd.
Seawater desalination Special funds allocated by the Daishan County
project of Zhoushan Green Development and Reform Bureau for investment
16,495,999.84 687,333.36 15808666.48 0.00 Other income
Petrochemical Base (phase projects in the central budget for the construction of
I) ecological civilization in 2019
The central subsidy fund for the demonstration pilot
Subsidy for recycling
project of circular transformation of the park in 2013
transformation project of 10,368,518.52 1,036,851.84 9,331,666.68 Other income
allocated by the Finance Bureau of Dalian Jinpu New
mother solid project
Area
Subsidy fund for boiler The first batch of special subsidy funds for the clean
22,842,324.75 1,179,925.92 21,662,398.83 Other income
cleaning transformation transformation of coal-fired boilers of Hangzhou coal-
153 / 187
2023 Semi-annual Report
fired power plants (thermal power) and other
industrial enterprises issued by Hangzhou M unicipal
Bureau of Finance and Hangzhou M unicipal Ecology
and Environment Bureau in 2002
The fifth batch of special financial incentive funds (for
promoting industrial development) for revitalizing the
Government subsidies for real economy (transformation of traditional industries)
14,600,000.01 5,000,000.00 900,000.00 18,700,000.01 Other income
imported equipment issued by Shaoxing Keqiao District Finance Bureau
and Shaoxing Keqiao District Economic and
Information Bureau
Subsidy for low nitrogen transformation of gas-fired
Subsidy for low nitrogen
boilers issued by Shaoxing Keqiao District Finance
transformation of gas-fired 1,363,066.00 85,664.16 1,277,401.84 Other income
Bureau and Keqiao Branch of Shaoxing Ecological
boiler
Environment Bureau
Special financial funds for Notice on Issuing the Provincial Special Financial
industrial and information Funds for Industrial and Information Development in
technology development, 9,777,777.76 333,333.36 9,444,444.40 Other income 2021 (Second Batch) (ZCJF [2022] No. 4) issued by
asset-based government the Zhoushan Finance Bureau and Zhoushan
subsidies Economic and Information Bureau
Notice on Issuing Financial Assistance Funds for the
Second Batch of Hangzhou Manufacturing Enterprise
Technical Transformation Projects in 2021 by the
Hangzhou M unicipal Finance Bureau (H.C.Q. [2021]
Technical renovation of
intelligent conveying and No.77); Notice on Issuing the District Level
1,377,927.41 48,643.80 1,329,283.61 Other income Supporting Facilities for the Second Batch of
packaging for polyester
Municipal Manufacturing Enterprise Technical
low-stretch yarn
Transformation Projects in 2021 by the Finance
Bureau of Xiaoshan District and the Economic and
Information Technology Bureau of Xiaoshan District,
Hangzhou City (X.C.Q. [2022] No. 13)
Special incentive project Special incentive funds for supply chain innovation
for supply chain innovation 586,666.67 19,999.98 566,666.69 Other income and application in Zhoushan Green Petrochemical
and application Base
Notice on Issuing the Special Financial Incentive
Equipment for the Fund for High Starting Point Planning of Industrial
functional polyester film Projects in Keqiao District in 2021 (Third Batch) by
expansion project with an 1,139,810.02 59,989.98 1,079,820.04 Other income the Economic and Information Technology Bureau of
annual output of 250,000 Keqiao District, Shaoxing City and the Finance
tons per year Bureau of Keqiao District, Shaoxing City (SKJX.
[2022] No.36)
154 / 187
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The special financial funds for energy conservation
Others 231,778.77 21,563.34 210,215.43 Other income and industrial circular economy of Zhejiang Province
allocated by Xiaoshan District Finance Bureau
Total 195,662,553.73 5,000,000.00 14,415,451.98 15,808,666.48 170,438,435.27
2) Income-related government grants for compensation for incurred relevant costs or losses
Presented
Item Amount Description of document number
items
Zhoushan Bureau of Finance and Zhoushan Bureau of Economy and Information Technology Notice on the Issuance of Municipal
Industrial Development Special Funds in 2023 (the First Batch) (ZCJF(2023)No.10), Ningbo Leading Group Office of High-
Other
Financial support funds 67,359,684.15 Quality Development of M anufacturing Industry, Ningbo Bureau of Economy and Information Technology, Ningbo Bureau of
income
Finance Notice on the Issuance of A Number of Opinions on the Industrial Sprint in the Fourth Quarter to Get off to a Good Start,
Stabilize Production and Improve the Quality (YZZYB[2022] No. 23) etc.
Zhejiang Provincial Department of Commerce Notice on the Clarification of the 2023 Provincial Business Promotion Financial
Industrial development Other Special “Two-dimensional Allocation Method” Funds (ZSWF (2023) No. 36), the Administrative Committee of Ningbo Hi-tech
17,901,654.00
promotion fund income Zone Notice on the Issuance of Opinions on Policies of Stabilizing the Economy by Relieving Troubles and Helping Enterprises in
Ningbo Hi-tech Zone (YGX [2022] No. 13) etc.
Ningbo Bureau of Human Resources and Social Security, Ningbo Federation of Labor Unions and Ningbo Committee of the
Subsidy fund for talents Other Communist Youth League Notice on the Selection of Ningbo Craftsmen for the New Era in 2022 (YRSH [2022] No. 26),
775,723.42
introduction income Hangzhou Xiaoshan District Human Resources and Social Security Bureau Notice on the Issuance of the Implementation Rules for
One-time Recruitment Subsidy for Manufacturing Enterprises in Xiaoshan District, Hangzhou (XRS [2022] No. 62) etc.
Other rewards and Other
498,652.21
subsidies income
Total 86,535,713.78
VIII. Changes in Combination Scope
1. Changes in combination scope due to other reasons
Describe changes in combination scope due to other reasons (such as establishment of a new subsidiary, liquidation of a subsidiary, etc.) and its relevant information:
1. Increase in combination scope
Company name Acquisition method Date of equity acquisition Amount of contribution
Zhoushan ZPC Sales Co., Ltd. Newly established M ay 25, 2023
2. Decrease in combination scope
155 / 187
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Net profits from the
Method of Net assets on the
Company name Date of disposal beginning of the period to
equity disposal disposal date
the disposal date
Zhoushan Yushan Petrochemical
Sold June 29, 2023 8,932,299.46 -9,860,629.44
Engineering Co., Ltd
IX. Equities in Other Entities
1. Equities in subsidiaries
(1) Group composition
Principal S hareholding ratio
Place of Business Acquisition
Name of subsidiary place of
registration nature Direct Indirect method
business
Zhejiang Shengyuan Chemical Xiaoshan, Xiaoshan,
M anufacturing 100.00% Set up
Fiber Co., Ltd. Zhejiang Zhejiang
Business
Hong Kong Sheng Hui Co., Hong Kong, Hong Kong, combination
Commercial 100.00%
Ltd. China China s under the
same control
Ningbo Yisheng Chemical Co., Ningbo, Ningbo, M anufacturing 95.00% Set up
Ltd. Zhejiang Zhejiang
Dalian Yisheng Investment Co., Dalian, Dalian,
M anufacturing 70.00% Set up
Ltd. Liaoning Liaoning
Yisheng Dahua Petrochemical Dalian, Dalian,
M anufacturing 84.60% Set up
Co., Ltd. Liaoning Liaoning
Hong Kong Yisheng Dahua Hong Kong, Hong Kong,
Commercial 100.00% Set up
Petrochemical Co., Ltd. China China
Dalian Rongxincheng Trading Dalian, Dalian, Commercial 100.00% Set up
Co., Ltd. Liaoning Liaoning
Zhejiang Rongtong Chemical Xiaoshan, Xiaoshan,
Commercial 100.00% Set up
Fiber New M aterial Co., Ltd. Zhejiang Zhejiang
Dalian Yisheng New M aterials Dalian, Dalian,
M anufacturing 100.00% Set up
Co., Ltd. Liaoning Liaoning
Business
Ningbo Zhongjin Petrochemical Ningbo, Ningbo, combination
M anufacturing 100.00%
Co., Ltd. Zhejiang Zhejiang s under the
same control
Ningbo Niluoshan New Energy Ningbo, Ningbo,
M anufacturing 100.00% Set up
Co., Ltd. Zhejiang Zhejiang
Business
combination
Zhejiang Yisheng New Ningbo, Ningbo,
M anufacturing 51.00% s not under
M aterials Co., Ltd. Zhejiang Zhejiang
the same
control
Ningbo Rongxincheng Trading Ningbo, Ningbo,
Commercial 100.00% Set up
Co., Ltd. Zhejiang Zhejiang
Yisheng New M aterials Trading Ningbo, Ningbo,
Commercial 100.00% Set up
Co., Ltd. Zhejiang Zhejiang
Zhejiang Rongyi Trading Co., Ningbo, Ningbo,
Commercial 100.00% Set up
Ltd. Zhejiang Zhejiang
156 / 187
2023 Semi-annual Report
Rongsheng Petrochemical
Singapore Singapore Commercial 100.00% Set up
(Singapore) Pte. Ltd.
Rongtong Logistics (Singapore)
Singapore Singapore Commercial 100.00% Set up
Pte. Ltd.
Rongsheng Petrochemical Hong Kong Hong Kong Commercial 100.00% Set up
(Hong Kong) Co., Ltd.
Rongsheng International Xiaoshan, Xiaoshan,
Commercial 100.00% Set up
Trading Co., Ltd. Zhejiang Zhejiang
Business
Zhejiang Petroleum & Zhoushan, Zhoushan, combination
M anufacturing 51.00%
Chemical Co., Ltd. Zhejiang Zhejiang s under the
same control
Zhoushan, Zhoushan,
Zhoushan ZPC Sales Co., Ltd. Commercial 100.00% Set up
Zhejiang Zhejiang
ZPC Zheyou Technology Co., Zhoushan, Zhoushan,
M anufacturing 70.00% Set up
Ltd. Zhejiang Zhejiang
Zhejiang Petroleum &
Singapore Singapore Commercial 100.00% Set up
Chemical (Singapore) Pte. Ltd.
Zhoushan, Zhoushan,
ZPC Jintang Logistics Co., Ltd. Commercial 100.00% Set up
Zhejiang Zhejiang
Xiaoshan, Xiaoshan,
Zhejiang ZPC Sales Co., Ltd. Commercial 100.00% Set up
Zhejiang Zhejiang
Zhoushan, Zhoushan,
Zhoushan ZPC Sales Co., Ltd. Commercial 100.00% Set up
Zhejiang Zhejiang
ZPC (Zhejiang Free Trade
Zhoushan, Zhoushan,
Zone) Green Petrochemical Commercial 100.00% Set up
Zhejiang Zhejiang
Research Institute Co., Ltd.
Rongxiang Chemical Fiber Co., Xiaoshan, Xiaoshan, M anufacturing 100.00% Set up
Ltd. Zhejiang Zhejiang
Business
Zhejiang Yongsheng Shaoxing, Shaoxing, combination
M anufacturing 70.00%
Technology Co., Ltd. Zhejiang Zhejiang s under the
same control
Zhejiang Zhuosheng Industry & Shaoxing, Shaoxing,
Commercial 100.00% Set up
Trade Co., Ltd. Zhejiang Zhejiang
Rongsheng International Danzhou, Danzhou,
Commercial 100.00% Set up
Trading (Hainan) Co., Ltd. Hainan Hainan
Rongsheng Chemical Shanghai, Shanghai,
Commercial 100.00% Set up
(Shanghai) Co., Ltd. China China
Rongsheng (Zhoushan) New Zhoushan, Zhoushan,
M anufacturing 100.00% Set up
M aterials Co., Ltd. Zhejiang Zhejiang
Rongsheng New M aterial Taizhou, Taizhou,
M anufacturing 100.00% Set up
(Taizhou) Co., Ltd. Zhejiang Zhejiang
(2) Major non-wholly owned subsidiaries
Unit: RM B
Gain and loss Dividend announced
S hareholding ratio attributable to to be distributed to
Ending balance of
Name of subsidiary of minority minority minority
minority equity
shareholders shareholders in the shareholders in the
current period current period
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Dalian Yisheng Investment
30.00% 29,428,680.84 0.00 2,045,661,193.99
Co., Ltd.
Yisheng Dahua Petrochemical
15.40% -11,254,535.39 0.00 1,058,318,814.22
Co., Ltd.
Zhejiang Petroleum & 49.00% -886,165,692.60 0.00 44,315,096,816.19
Chemical Co., Ltd.
Zhejiang Yongsheng
30.00% -13,797,656.55 0.00 205,797,649.66
Technology Co., Ltd.
Zhejiang Yisheng New
49.00% -93,870,709.22 0.00 1,300,348,032.10
M aterials Co., Ltd.
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(3) Main financial information of major non-wholly owned subsidiaries
Unit: RM B
Ending balance Beginning balance
Name of Non- Non- Non- Non-
subsidiary 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
7,212,986, 9,703,099, 16,916,086 8,061,139, 1,161,059, 9,222,198, 7,863,016, 9,670,921, 17,533,937 9,020,135, 877,263,39 9,897,398,
Investment Co.,
819.99 236.64 ,056.63 037.75 290.64 328.39 267.32 048.60 ,315.92 075.15 8.54 473.69
Ltd.
Yisheng Dahua
9,052,113, 6,294,010, 15,346,123 8,059,514, 1,161,059, 9,220,574, 9,702,998, 6,368,833, 16,071,832 9,017,987, 877,263,39 9,895,250,
Petrochemical
024.88 072.48 ,097.36 815.59 290.64 106.23 995.48 973.65 ,969.13 092.36 8.54 490.90
Co., Ltd.
Zhejiang
Petroleum & 54,158,766 221,102,00 275,260,76 64,886,437 120,175,13 185,061,56 66,428,360 220,440,13 286,868,49 73,204,392 121,717,08 194,921,48
Chemical Co., ,593.40 2,686.62 9,280.02 ,837.05 1,872.31 9,709.36 ,516.70 7,988.94 8,505.64 ,158.98 9,146.90 1,305.88
Ltd.
Zhejiang
Yongsheng 624,860,49 1,866,075, 2,490,935, 948,947,91 855,995,64 1,804,943, 603,435,05 1,678,225, 2,281,661, 841,912,13 707,764,51 1,549,676,
Technology Co., 5.73 225.02 720.75 2.58 2.66 555.24 6.35 947.80 004.15 9.62 0.53 650.15
Ltd.
Zhejiang
Yisheng New 3,503,255, 8,793,970, 12,297,225 7,488,427, 2,155,080, 9,643,507, 3,175,435, 9,113,541, 12,288,977 7,823,185, 1,605,762, 9,428,948,
M aterials Co., 416.30 033.38 ,449.68 584.79 125.25 710.04 983.29 928.71 ,912.00 859.65 652.80 512.45
Ltd.
Unit: RM B
Current amount incurred Amount incurred in the previous period
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 14,135,227,704.1 - 15,534,691,823.2
86,841,067.42 57,348,886.01 195,822,039.82 205,941,149.69 -319,840,820.17
Investment Co., Ltd. 6 1,088,546,093.37 5
Yisheng Dahua 14,135,227,704.1 - 15,534,691,823.2
-73,067,164.80 -51,033,487.10 57,298,172.33 83,019,574.83 -820,469,146.06
Petrochemical Co., Ltd. 6 1,089,402,616.64 5
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2023 Semi-annual Report
Zhejiang Petroleum & 120,776,303,042. - - 106,665,923,148. 31,729,992,611.4
9,529,287,672.59 8,538,772,313.32 8,538,550,415.75
Chemical Co., Ltd. 53 1,751,527,430.45 1,751,601,063.10 47 2
Zhejiang Yongsheng
1,113,893,496.59 -45,992,188.49 -45,992,188.49 114,065,403.23 1,259,283,241.43 53,147,684.81 53,147,684.81 -28,301,658.25
Technology Co., Ltd.
Zhejiang Yisheng New 17,913,286,293.8 16,017,912,352.5
-206,590,638.53 -206,311,659.91 205,886,712.10 22,695,139.38 22,695,139.38 340,635,556.04
M aterials Co., Ltd. 8 2
2. Equity in joint ventures or associated enterprises
(1) Important joint ventures or associated enterprises
S hareholding ratio Accounting method for
Name of the joint venture or associated Principal place of Place of investments in joint
Business nature
enterprise business registration Direct Indirect ventures or associated
enterprises
Accounting by the equity
Zhejiang Yisheng Petrochemical Co., Ltd. Ningbo, Zhejiang Ningbo, Zhejiang M anufacturing 16.07% 13.93%
method
Accounting by the equity
Hainan Yisheng Petrochemical Co., Ltd. Yangpu, Hainan Yangpu, Hainan M anufacturing 50.00%
method
Accounting by the equity
Ningbo Hengyi Trading Co., Ltd. Ningbo, Zhejiang Ningbo, Zhejiang Commercial 30.00%
method
Zhejiang Xiaoshan Rural Commercial Bank Accounting by the equity
Xiaoshan, Zhejiang Xiaoshan, Zhejiang Finance 9.71%
Co., Ltd. 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 enterprise s
Unit: RM B
Ending balance/amount incurred in the current period Beginning balance/amount incurred in the prior period
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Ningbo Hengyi Xiaoshan Rural Ningbo Hengyi Xiaoshan Rural
Zhejiang Zhejiang
Hainan Yisheng Trading Co., Commercial Hainan Yisheng Trading Co., Commercial
Yisheng Yisheng
Ltd. Bank Ltd. Bank
16,751,172,744.1 232,365,085,118. 15,176,421,030.3 204,793,958,004.
Current assets 5,731,762,059.41 1,170,433,896.52 5,152,846,491.05 287,114,550.78
1 20 3 31
98,969,635,753.6 78,315,867,412.7
Non-current assets 3,367,134,387.25 8,607,401,246.01 3,556,134,332.39 3,593,134,697.01 7,192,824,373.67 3,450,161,589.10
8 2
20,118,307,131.3 14,339,163,305.4 331,334,720,871. 18,769,555,727.3 12,345,670,864.7 283,109,825,417.
Total assets 4,726,568,228.91 3,737,276,139.88
6 2 88 4 2 03
289,140,013,843. 255,066,384,587.
Current liabilities 9,933,871,440.11 4,650,658,258.43 3,986,989,420.91 9,101,100,209.73 4,166,702,054.87 2,968,960,871.83
35 60
20,365,549,825.2
Non-current liabilities 1,199,800,375.00 3,050,582,087.92 733,508,577.50 1,752,991,337.36 7,200,472,723.92
8
11,133,671,815.1 309,505,563,668. 262,266,857,311.
Total liabilities 7,701,240,346.35 3,986,989,420.91 9,834,608,787.23 5,919,693,392.23 2,968,960,871.83
1 63 52
M inority equity 269,087,264.74 273,191,261.65
Shareholders’ equity 21,560,069,938.5 20,569,776,843.8
attributable to the parent 8,984,635,316.25 6,637,922,959.07 739,578,808.00 8,934,946,940.11 6,425,977,472.49 768,315,268.05
1 6
company
Share of net assets
calculated by the 2,695,390,594.88 3,318,961,479.54 221,873,642.40 2,093,870,872.29 2,680,484,082.03 3,212,988,736.25 230,494,580.42 1,997,736,727.08
shareholding ratio
Adjustments
--Goodwill 102,420,700.00 4,040,400.00 102,420,700.00 4,040,400.00
--Unrealized profits from
-12,523,708.66
internal transactions
--Others 11,273,596.91 -11,494,331.77 1,238,672.03 11,166,142.40 11,273,596.91 30.97 1,238,672.03 4,302,713.07
Book value of equity
investment in associated 2,706,664,191.78 3,409,887,847.77 223,112,314.43 2,109,077,414.69 2,691,757,678.94 3,302,885,758.56 231,733,252.44 2,006,079,840.15
enterprise
Fair value of equity
investment in associated
enterprise with the public
offer
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2023 Semi-annual Report
12,693,711,327.4 10,107,704,727.6 12,302,809,948.5
Operating revenue 8,952,011,880.85 3,601,028,878.05 8,854,354,173.70 7,381,130,901.74 3,129,903,598.29
3 4 5
Net profit 25,151,242.14 314,997,204.80 22,789,399.06 1,370,009,795.40 97,938,771.62 272,897,534.93 18,541,394.77 980,074,507.71
Net profit from
termination of operation
Other comprehensive
24,537,134.00 -103,051,718.22 -51,525,859.11 117,255,082.81 -37,253,216.39 -31,204,585.25 -15,602,292.63 -56,814,156.95
income
Total comprehensive
49,688,376.14 211,945,486.58 -28,736,460.05 1,487,264,878.21 60,685,555.23 241,692,949.68 2,939,102.14 923,260,350.76
income
Dividends received from
associated enterprises in 39,685,918.80 265,000,000.00 169,500,000.00 39,685,918.80
the current year
(3) Summary of the financial information of minor joint ventures and associated enterprises
Unit: RM B
Ending balance/amount incurred in the current period Beginning balance/amount incurred in the prior period
Associated enterprise:
Total book value of investments 442,301,126.80 500,873,276.26
Total of the following items calculated as per the respective
shareholding proportion
--Net profit -64,355,583.45 -64,491,661.45
--Other comprehensive income 3,783,433.99 -154,250.47
--Total comprehensive income -60,572,149.46 -64,645,911.92
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X. Risks Relating to Financial Instruments
The Company conducts risk management to seek the appropriate balance between the risks and benefits from
its use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have on the
Company’s financial performance. Based on this objective, the Company’s basic policy for risk management is to
confirm and analyze all kinds of risks faced by the Company, set up an appropriate risk bottom line, conduct risk
management, and monitor all risks promptly and reliably to limit risks within a specific range.
The Company faces various risks related to financial instruments in its daily activities, mainly including credit
risk, liquidity risk and market risk. The Management has deliberated and approved the policies governing such risks,
as outlined below.
(I) Credit risk
Credit risk refers to the risk that may bring financial loss to one party of the financial tool caused by the other
party’s failure to perform its obligations in the contract.
1. Practice of credit risk management
(1) Evaluation method of credit risk
On each balance sheet date, the Company assesses whether the credit risk of relevant financial instruments has
increased significantly since initial recognition. When confirming whether the credit risks have increased
significantly since the initial recognition, the Company considers reasonable and well-founded information,
including qualitative and quantitative analysis based on the Company’s history data, external credit risk ratings and
forward-looking information, without incurring additional costs or efforts. Based on a single financial instrument
or a combination of financial instruments with similar credit risk characteristics, the Company compares the default
risks of the financial instruments on the balance sheet date with the default risks on the initial recognition date so
as to determine changes in the expected default risks of financial instruments during the duration.
When one or more of the following quantitative and qualitative criteria is/are triggered, the Company considers
that the credit risks of financial instruments have increased significantly:
1) The quantitative criteria mainly refer to that the probability of default of the remaining duration on the
balance sheet date increases by more than a certain proportion compared with the initial recognition.
2) The qualitative criteria mainly include significant adverse changes in the debtor ’s business or financial
situation, and existing or expected changes in the technical, market, economic or legal environment, which will
have a significant adverse impact on the debtor ’s repayment ability to the Company, etc.
(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.
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3. For the reconciliation between the opening balance and the closing balance of the provision for loss of
financial instruments, please see notes VII 3 and VII 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 June 30, 2023, the Company has a
certain credit concentration risk, because 61.62% (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
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 by the end of the period
Item Undiscounted
Book value Within 1 year 1-3 year(s) Above 3 years
contract price
Bank
195,712,104,096.54 221,025,418,081.61 67,482,367,115.08 64,217,111,870.36 89,325,939,096.17
borrowings
Trading
financial 549,233,668.87 549,233,668.87 549,233,668.87
liabilities
Notes payable 2,425,595,695.06 2,425,595,695.06 2,425,595,695.06
Accounts
40,246,839,546.30 40,246,839,546.30 40,246,839,546.30
payable
Other
5,932,751,765.86 5,932,751,765.86 5,932,751,765.86
payables
Bonds
2,033,552,302.01 2,107,600,000.00 1,073,100,000.00 1,034,500,000.00
payable
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Lease
224,948,277.68 283,362,499.97 29,292,521.61 57,669,786.69 196,400,191.67
liabilities
Subtotal 247,125,025,352.32 272,570,801,257.67 117,739,180,312.78 65,309,281,657.05 89,522,339,287.84
(Cont.)
Amount at the beginning of the period
Item Undiscounted
Book value Within 1 year 1-3 year(s) Above 3 years
contract price
Bank
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
borrowings
Trading
financial 588,769,711.55 588,769,711.55 588,769,711.55
liabilities
Notes payable 3,408,800,462.03 3,408,800,462.03 3,408,800,462.03
Accounts
69,079,366,976.43 69,079,366,976.43 69,079,366,976.43
payable
Other
3,472,604,671.47 3,472,604,671.47 3,472,604,671.47
payables
Bonds 2,034,827,122.23 2,146,200,000.00 73,100,000.00 2,073,100,000.00
payable
Lease
235,690,816.58 273,722,334.25 23,875,292.60 42,762,902.46 207,084,139.19
liabilities
Subtotal 256,591,096,488.88 305,642,967,500.73 120,595,022,027.85 43,101,963,033.82 141,945,982,439.06
(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 June 30, 2023, the bank borrowings with a floating interest rate of the Company are RMB 135,828.1803
million, USD 290 million, and EUR 63.507 million (December 31, 2022: RMB 138,260.1218 million). Under the
assumption that other variables remain unchanged, assuming that the interest rate changes by 50 benchmark points,
it will not have a significant impact on the total profits and shareholders’ equity.
2. Foreign exchange risk
Foreign exchange risk means a risk that the fair value or future cash flow of a financial instrument fluctuates
due to a change in the foreign exchange rate. The risk of exchange rate changes faced by the Company is mainly
related to the Company’s foreign currency monetary assets and liabilities. For foreign currency assets and liabilities ,
in case of short-term imbalance, the Company will buy and sell foreign currencies at the market exchange rate when
necessary to ensure that the net risk exposure is maintained at an acceptable level.
The Company’s monetary assets and liabilities in foreign currencies at the end of the period are detailed in note
VII 58 of Notes to Items in the Consolidated Financial Statements.
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XI. Disclosure of Fair Value
1. Fair value at the end of the period of assets and liabilities measured at fair value
Unit: RM B
Ending fair value
Item Level 1 fair Level 2 fair Level 3 fair
value value value Total
measurement measurement measurement
I. Sustained measurement of fair value -- -- -- --
1. Trading financial assets and other non-current
financial assets
(1) Financial assets classified as financial assets
measured at fair value through profit or loss for the 387,219,170.37 387,219,170.37
current period
Derivative financial assets 387,219,170.37 387,219,170.37
2. Receivables financing 529,695,407.36 529,695,407.36
Total assets continuously measured at fair value 387,219,170.37 529,695,407.36 916,914,577.73
3. Trading financial liabilities 549,233,668.87 549,233,668.87
Derivative financial liabilities 549,233,668.87 549,233,668.87
Total liabilities continuously measured at fair value 549,233,668.87 549,233,668.87
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 3 fair value measurement items
Basis: the fair value is determined by using a specific valuation technique, and the important parameters
adopted include interest rates that cannot be directly observed and so on.
XII. Related Party and Related Transactions
1. The Company’s parent company
Proportion of the
Proportion of the
Company’s
Name of parent Place of Company’s
Business nature Registered capital voting rights held
company registration shares held by the by the parent
parent company
company
Zhejiang
Rongsheng Xiaoshan, Industrial
83,466.40 61.46% 61.46%
Holding Group Zhejiang investment
Co., Ltd.
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Information about the Company’s parent company
Other information:
By the end of June, Li Shuirong directly holds 6.35% equity in the Company. Zhejiang Rongsheng Holding
Group Co., Ltd. holds 61.46% of the equity of the Company, and Li Shuirong holds 63.523% of the equity of
Zhejiang Rongsheng Holding Group Co., Ltd., thus indirectly holding 39.04% of the equity of the Company, with
a total of holding 45.39% of the equity of the Company.
The ultimate controlling party of the Company is Li Shuirong.
2. Information on subsidiaries of the Company
See Note IX for details of the Company’s subsidiaries.
3. The Company’s joint ventures and associated enterprises
See Note IX for details of important joint ventures or associated enterprises of the Company.
Other joint ventures and associated enterprises that form balances in related party transactions with the
Company in the current or previous period are as follows:
Name of joint venture or associated enterprise Relation with the Company
Zhejiang Provincial Petroleum Co., Ltd. Associated enterprise
ZPC-ENN (Zhoushan) Gas Co., Ltd. Associated enterprise
Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. Associated enterprise
Zhejiang Kunsheng Petroleum & Chemical Sales Co., Ltd. Associated enterprise
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. Associated enterprise
Zhoushan ZPC Zhougang Tugboat Co., Ltd. Associated enterprise
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
Xiang Jiongjiong Director and General M anager
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
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2023 Semi-annual Report
Ningbo United Group Co., Ltd. The same ultimate actual controller
Suzhou Shenghui Equipment Co., Ltd. The same ultimate actual controller
Hangzhou Shengyuan Real Estate Development Co., Ltd. The same ultimate actual controller
Daishan Chenyu Real Estate Co., Ltd. The same ultimate actual controller
Rongsheng Coal Co., Ltd. The same ultimate actual controller
Rongsheng Energy Co., Ltd. The same ultimate actual controller
Ningbo Qingzhi Chemical Terminal Co., Ltd. The same ultimate actual controller
Ningbo Qijiashan Chemical Terminal Co., Ltd. The same ultimate actual controller
Ningbo Haineng Blend Oil Co., Ltd. The same ultimate actual controller
Hong Kong Yisheng Co., Ltd. Subsidiary of Hainan Yisheng Petrochemical Co., Ltd.
Hong Kong Yisheng 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 Co.,
Dongzhan Shipping Co., Ltd.
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.
Actual control company of subsidiary of Zhejiang
Zhoushan Oil Pipeline Co., Ltd.
Provincial Petroleum Co., Ltd.
ZHEJIANG PETROLEUM TRADING (SINGAPORE) PTE. LTD. Subsidiary of Zhejiang Provincial Petroleum Co., Ltd.
SAUDI ARABIAN OIL COM PANY [Note]
ARAM CO TRADING SINGAPORE PTE LTD Subsidiary of SAUDI ARABIAN OIL COM PANY
Sabic (China)Holding Co Ltd Subsidiary of SAUDI ARABIAN OIL COM PANY
Sabic (Shanghai) Trading Co Ltd Subsidiary of SAUDI ARABIAN OIL COM PANY
SABIC ASIA PACIFIC PTE LTD Subsidiary of SAUDI ARABIAN OIL COM PANY
Other notes
[Note] Zhejiang Rongsheng Holding Group, the controlling shareholder of the Company, signed the Share
Purchase Agreement with the strategic partner Aramco Overseas Company B.V (hereinafter referred to as AOC), a
wholly-owned subsidiary of Saudi Arabian Oil Company (hereinafter referred to as Saudi Aramco) on March 27,
2023, and the transferring parties have obtained the Confirmation of Securities Transfer Registration issued by
China Securities Depository and Clearing Corporation Limited on July 20, 2023 and completed the transfer.
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: RM B
Related party Contents of Current Amount of Whether it Amount
related party amount transactions exceeds the incurred in the
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2023 Semi-annual Report
transaction incurred approved approved previous period
amount of
transactions
Zhejiang Rongsheng Holding Group Coal and other 9,203,105,641.
No 2,860,103,597.62
Co., Ltd. materials 75
16,000,000,000
Rongsheng Energy Co., Ltd. Coal No 2,460,663,120.71
Rongsheng Coal Co., Ltd. Coal, labor No 204,118,267.44
Zhejiang Rongtong Logistics Co.,
Freight 531,548,409.92 1,000,000,000 No 201,831,537.80
Ltd.
Plant
Zhejiang Dingsheng Petrochemical operation
345,759,181.50 700,000,000 No 284,720,249.85
Engineering Co., Ltd. guarantee
service fee
Industrial m-
pentadiene,
Zhejiang Derong chemicals Co. Ltd. 341,814,473.82 1,500,000,000 No
auxiliary
materials, etc.
Ningbo Hengyi Trading Co., Ltd. PTA、PX 211,953,592.92 3,000,000,000 No 1,457,707,469.19
Suzhou Shenghui Equipment Co., Equipment
84,014,976.28 350,000,000 No 120,696,751.37
Ltd. and materials
Guangsha (Zhoushan) Energy Warehousing
59,158,556.00 200,000,000 No 59,007,693.52
Group Co., Ltd. service
Lump sum fee
Ningbo Qingzhi Chemical Terminal for port 36,123,758.82 100,000,000 No 37,621,279.16
Co., Ltd.
operation
IPA,
Zhejiang Yisheng Petrochemical
warehousing 47,306,743.36 120,000,000 No 39,096,544.29
Co., Ltd.
fee
Ningbo Rongxiang Logistics Co.,
Freight 23,806,547.61 70,000,000 No 12,714,540.55
Ltd.
Warehousing
Ningbo Haineng Blend Oil Co., Ltd. 15,812,394.15 50,000,000 No 12,844,360.86
service
Dongzhan Shipping Co., Ltd. Freight 12,206,518.81 50,000,000 No 7,160,941.04
Pipeline
Zhoushan Oil Pipeline Co., Ltd. 5,288,990.83 30,000,000 No
service
Sanyuan Holding Group Hangzhou
Steam 4,791,721.11 30,000,000 No 8,639,495.40
Thermal Power Co., Ltd.
Auxiliary
Zhejiang Juxing Chemical Fiber
materials, No 12,202,312.51
Co., Ltd.
hardware
Auxiliary
Zhejiang Saintyear Textile Co., Ltd. 2,394,958.41 3,000,000 No
materials
Zhejiang Petroleum Integrated
Diesel 630,247.79 5,000,000 No 1,739,890.17
Energy Sales Co., Ltd.
Coal water
Thermal Power Co., Ltd. of Ningbo
slurry
Economic and Technological 49,438.48 1,000,000 No 124,914.09
processing,
Development Zone
power
Ningbo United Group Co., Ltd. Hotel services 76,056.84 1,000,000 No 9,404.71
PX
Ningbo Shengmao Trading Co., Ltd. 1,000,000,000 No 730,188,253.84
etc.
169 / 187
2023 Semi-annual Report
ZHEJIANGPETROLEUMTRADI
Crude oil 4,120,000,000 No 1,391,497,077.45
NG(SINGAPORE)PTE.LTD.
SAUDI ARABIAN OIL 27,189,630,729 25,561,755,046.8
Crude oil No
COM PANY .16 6
ARAM CO TRADING Crude oil [Note 1] No 630,102,133.60
SINGAPORE PTE LTD
71,000,000,000
Sabic (Shanghai) Trading Co Ltd M EG 317,929,261.69 No 395,291,299.43
SABIC ASIA PACIFIC PTE LTD M EG No 150,378,165.78
Sabic (China) Holding Co Ltd M EG No 246,571,056.35
38433402199.2 99,330,000,000. 36,886,785,403.5
Total
5 00 9
Information on goods sold/services provided
Unit: RM B
Amount incurred
Contents of related party Current amount
Related party in the previous
transaction incurred
period
ZHEJIANGPETROLEUMTRADING(SINGAPORE) Crude oil 1,089,776,427.34
PTE.LTD.
Hainan Yisheng Petrochemical Co., Ltd. PTA, PX etc. 168,481,157.17
PTA, auxiliary materials,
Zhejiang Juxing Chemical Fiber Co., Ltd. 562,682,429.13
M EG etc.
Ningbo Rongxiang Logistics Co., Ltd. Diesel 3,643,690.64
Ningbo Shengmao Trading Co., Ltd. PTA 153,267,962.43
Suzhou Shenghui Equipment Co., Ltd. Diesel 9734.51
Diesel, engineering
Zhejiang Derong chemicals Co. Ltd. 539,900,609.38 152,121,369.05
materials, power, etc.
Zhejiang Dingsheng Petrochemical Engineering Co.,
Diesel 935,398.27
Ltd.
Zhejiang Jurong Petroleum & Chemical Sales Co., Diethylene glycol, glycol
56,928,235.68 75,673,733.14
Ltd. etc.
Zhejiang Rongtong Logistics Co., Ltd. Diesel, PTA 11,667,724.36 838,459.20
Zhejiang Yisheng Petrochemical Co., Ltd. PTA、PX 5,368,839,946.05 2,105,247,813.15
Zhejiang Yixin Chemical Fiber Co., Ltd. PTA 147,504,424.78 60,176.99
Zhejiang Petroleum Integrated Energy Sales Co., Ltd. Diesel, gas 245,866,250.46
Zhoushan ZPC Zhougang Tugboat Co., Ltd. Diesel etc. 7,139,205.79 4,992,805.40
Ningbo Hengyi Trading Co., Ltd. PTA 446,053,097.35
Zhejiang Kunsheng Petroleum & Chemical Sales Co., PX, M EG, petroleum
9,031,590,312.35
Ltd. benzene etc.
ARAM CO TRADING SINGAPORE PTE LTD Crude oil [Note 1] 463,239
Total 7793960766.86 12,379,723,434.76
Note to related party transactions of goods purchase & sale and labor services rendering & receiving
[Note 1] The Company purchased crude oil from ARAMCO TRADING SINGAPORE PTE LTD in the first
half of the year for an aggregate amount of RMB 1,114,146,200 and at the same time sold crude oil to ARAMCO
TRADING SINGAPORE PTE LTD for an amount of RMB 1,116,545,900 (confirmed w ith the net book value
method).
170 / 187
2023 Semi-annual Report
[Note 2] The Company transferred its equity interest in this company in November 2021, and after the transfer
of equity the Company no longer holds an equity interest in this company, and only the amount of transactions with
this company for the period January-June 2022 is disclosed in the notes to these financial statements.
(2) Related leasing
The Company acts as the Lessor:
Unit: RM B
Rental income recognized in Rental income recognized in
Name of lessee Type of leased asset
the current period the previous period
Rongtong Logistics Co., Ltd. House rental 642,201.84 642,201.84
Ningbo Rongxiang Logistics
House rental 65,415.93
Co., Ltd.
Total 707,617.77 642,201.84
The Company acts as the Lessee:
Unit: RM B
Variable lease
Rental expenses for Interest
payments not
short-term leases and expense on Increase in
included in the
leases of low-value Rent paid lease right-of-use
measurement of
assets on a simplified liabilities assets
lease liabilities (if
basis (if applicable) assumed
applicable)
Type Amo Amo Amo
of unt unt unt
Name of lessor leased Curr incu Curr incu Curr incu
asset Amount Amount
Current ent rred ent rred ent rred
Current incurred incurre
amount amo in amo in amo in
amount in the d in the
incurre unt the unt the unt the
incurred previous previou
d incu previ incu previ incu previ
period s period
rred ous rred ous rred ous
perio perio perio
d d d
Zhejiang
Rongsheng House 275,229.3 275,229.3
Holding Group leasing 6 6
Co., Ltd.
Hangzhou
Shengyuan Real House 1,847,627
Estate
leasing .16
Development Co.,
Ltd.
2122856. 275,229.3
Total
52 6
(3) Affiliated guarantees
The Company as guarantor
Unit: RM B
S tarting date of the Ending date of the Whether the
S ecured party Guarantee amount
guarantee guarantee guarantee has
171 / 187
2023 Semi-annual Report
been
performed
Sanyuan Holding Group Co., Ltd. 80,000,000.00 M arch 04, 2021 February 27, 2024 No
Zhejiang Rongsheng Holding Group
1,799,607,000.00 July 19, 2022 December 29, 2023 No
Co., Ltd.
Zhejiang Rongsheng Holding Group
4,283,382,500.00 July 04, 2022 June 08, 2024 No
Co., Ltd.
Zhejiang Rongsheng Holding Group
522,881,200.00 October 24, 2022 October 31, 2023 No
Co., Ltd. [Note 1]
Zhejiang Rongsheng Holding Group
56,331,187,700.00 January 29, 2021 M arch 12, 2028 No
Co., Ltd.
Zhejiang Rongsheng Holding Group
591,311,900.00 April 28, 2020 April 01, 2029 No
Co., Ltd. [Note 2]
Zhejiang Rongsheng Holding Group
1,837,500,000.00 M ay 08, 2021 January 15, 2026 No
Co., Ltd. [Note 3]
Zhejiang Rongsheng Holding Group
3,172,884,100.00 November 22, 2021 October 20, 2027 No
Co., Ltd. [Note 4]
Zhejiang Rongsheng Holding Group 200,585,200.00 June 09, 2020 June 15, 2026 No
Co., Ltd. [Note 5]
Zhejiang Rongsheng Holding Group
119,750,000.00 September 30, 2020 September 30, 2023 No
Co., Ltd. [Note 6]
Zhejiang Rongsheng Holding Group
73,067,700.00 November 16, 2021 January 24, 2025 No
Co., Ltd. [Note 7]
Zhejiang Rongsheng Holding Group
2,040,000,000.00 September 28, 2022 October 12, 2025 No
Co., Ltd. [Note 1]
Zhejiang Rongsheng Holding Group
3,243,951,600.00 August 18, 2020 April 20, 2026 No
Co., Ltd. [Note 8]
Zhejiang Rongsheng Holding Group
15,667,777,100.00 November 14, 2022 October 30, 2030 No
Co., Ltd. [Note 9]
Zhejiang Rongsheng Holding Group
Co., Ltd., Rongsheng Petrochemical 5,829,555,400.00 July 08, 2022 December 08, 2024 No
Co., Ltd.
Zhejiang Rongsheng Holding Group
Co., Ltd., Rongsheng Petrochemical
20,420,426,300.00 July 31, 2018 July 30, 2030 No
Co., Ltd., Li Shuirong, Li Jumei [Note
11]
Zhejiang Rongsheng Holding Group
Co., Ltd., Rongsheng Petrochemical
1,068,695,820.00 August 08, 2018 July 30, 2030 No
Co., Ltd., Li Shuirong, Li Jumei [Note
11]
Zhejiang Rongsheng Holding Group
Co., Ltd., Rongsheng Petrochemical 30,552,538,800.00 January 22, 2021 November 15, 2032 No
Co., Ltd. [Note 10]
Zhejiang Rongsheng Holding Group
6,738,472,300.00 M arch 15, 2022 June 26, 2024 No
Co., Ltd.
Zhejiang Rongsheng Holding Group
310,070,225.85 June 02, 2022 December 30, 2024 No
Co., Ltd.
Zhejiang Rongsheng Holding Group 30,565,862,360.64 November 27, 2020 October 30, 2023 No
Co., Ltd.
Zhejiang Rongsheng Holding Group
219,800,235.27 M arch 29, 2023 September 30, 2024 No
Co., Ltd. [Note 9]
Zhejiang Rongsheng Holding Group 689,246.25 M ay 09, 2023 July 11, 2023 No
172 / 187
2023 Semi-annual Report
Co., Ltd. [Note 1]
Zhejiang Rongsheng Holding Group
3,663,779,025.54 M ay 12, 2023 August 31, 2023 No
Co., Ltd. [Note 1]
Zhejiang Rongsheng Holding Group
10,827,073.95 June 06, 2019 July 01, 2023 No
Co., Ltd. [Note 11]
Zhejiang Rongsheng Holding Group
149,623,151.37 M arch 29, 2021 July 30, 2024 No
Co., Ltd. [Note 10]
Description of related guarantee:
[Note 1] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
60% of the guarantee amount.
[Note 2] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. The subsidiary Ningbo Niluoshan New Energy Co., Ltd. has provided mortgage
guarantee with fixed assets and intangible assets worth RMB 134.8 million.
[Note 3] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. The subsidiary Ningbo Zhongjin Petrochemical Co., Ltd. has provided a mortgage
guarantee with machinery and equipment worth RMB 3,786.8923 million.
[Note 4] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. The subsidiary Zhejiang Yisheng New Materials Co., Ltd. has provided a mortgage
guarantee with machinery and equipment worth RMB 4,238.0024 million.
[Note 5] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
50% of the guarantee amount. The subsidiary Zhejiang Yisheng New Materials Co., Ltd. has provided a mortgage
guarantee with machinery and equipment worth RMB 4,238.0024 million.
[Note 6] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
50% of the guarantee amount.
[Note 7] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for
51% of the guarantee amount.
[Note 8] 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 8,641.9026 million.
[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 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 10] 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 11] 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).
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2023 Semi-annual Report
(4) Remuneration of key management personnel
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Remuneration of key management 6,219,431.41 7,453,462.37
personnel
(5) Other related transactions
1. Fund borrowing from/to related parties
(1) At the beginning of the period, the Company had RMB 1,539.5136 million payable to Zhejiang Rongsheng
Holding Group Co., Ltd.; in the current period, the Company has borrowed RMB 3,756 million from Zhejiang
Rongsheng Holding Group Co., Ltd., made RMB 61.6691 million provisions for fund possession cost, and r eturned
RMB 1,281.5104 million of principal and interest on a cumulative basis. As of June 30, 2023, the amount payable
by the Company is RMB 4,075.6721 million.
In the current period, the subsidiary Zhejiang Shengyuan Chemical Fiber Co., Ltd. has borrowed RMB 1,500
million from Zhejiang Rongsheng Holding Group Co., Ltd. and returned RMB 1,500 million on a cumulative basis.
As of June 30, 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 million and RMB 1.4339 million,
respectively. In the current period, RMB 750 million was paid in due c ourse, RMB 548 million of the entrusted loan
was received, RMB 21.4979 million of entrusted loan interest was accrued, and RMB 21.8871 million of entrusted
loan interest was paid. As of June 30, 2023, RMB 786 million of entrusted loan and RMB 1.0447 million of entrusted
loan interest were not yet due for payment.
(3) At the beginning of the period, the amount receivables of subsidiary Zhejiang Petroleum & Chemical Co.,
Ltd. from ZPC-ENN (Zhoushan) Gas Co., Ltd. were RMB 4.8 million, with RMB 105,000 provisions for fund
possession cost, RMB 52,200 of fund possession cost collected. As of June 30, 2023, the amount receivables of
Zhejiang Petroleum & Chemical Co., Ltd. were RMB 4.8528 million.
2. As of June 30, 2023, the subsidiary Zhejiang Petroleum & Chemical Co., Ltd. had made RMB 577.4678
million of house payments to Daishan Chenyu Real Estate Co., Ltd. on a cumulative basis.
3. The subsidiary Rongsheng Petrochemical (Singapore) Pte Ltd. had conducted paper transactions with Hong
Kong Yisheng Co., Ltd., with an investment gain of USD 2,343,288.04 realized in total in the current period. During
this period, the Company conducted paper transactions with Hong Kong Yisheng Co., Ltd., with an investment gain
of USD 2,698,895.3 realized in total in the current period.
4. As of June 30, 2023, the deposit balance of the Company and its subsidiaries in the related party Zhejiang
Xiaoshan Rural Commercial Bank Co., Ltd. was RMB 225,986,928.64, USD 16,988.94 and EUR 129.66.
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RM B
Ending balance Beginning balance
Project Related party
Book balance Bad-debt Book balance Bad-debt
174 / 187
2023 Semi-annual Report
provision provision
Accounts Zhejiang Yisheng
470,753,229.81 23,537,661.49 328,112,466.43 18,074,604.36
receivable Petrochemical Co., Ltd.
Zhejiang Kunsheng
Petroleum & Chemical 299,160,177.48 14,958,008.87
Sales Co., Ltd.
Subtotal 470,753,229.81 23,537,661.49 627,272,643.91 33,032,613.23
Advance Sabic (Shanghai) Trading
6,017,596.12 122,661.83
payment Co Ltd
Ningbo Shengmao
52,067,253.14
Trading Co., Ltd.
Hangzhou Shengyuan
Real Estate Development 3,063,364.94
Co., Ltd.
Subtotal 6,017,596.12 55,253,279.91
Other ZPC-ENN (Zhoushan)
4,852,780.00 242,639.00 4,800,000.00 523,802.73
receivables Gas Co., Ltd.
Hong Kong Yisheng Co., 1,135,320.34
Ltd.
Hong Kong Yisheng
Petrochemical Investment 412,896.31
Co., Ltd.
Rongsheng Energy Co.,
14,992.79 749.64
Ltd.
Zhoushan Yushan
Petrochemical 2,255,438,401.15
Engineering Co., Ltd
Subtotal 2,260,291,181.15 242,639.00 6,363,209.44 524,552.37
(2) Payables
Unit: RM B
Beginning book
Project Related party Ending book balance
balance
Rongsheng Petrochemical (Singapore)
Accounts payable 18,699,871,466.82 33,752,876,000.52
Pte. Ltd. [Note]
Zhejiang Petroleum & Chemical Co., Ltd.
353,785,739.30 2,265,876,894.64
[Note]
Yisheng Dahua Petrochemical Co., Ltd.
1,446,664,700.00 2,053,414,700.00
[Note]
Dalian Rongxincheng Trading Co., Ltd.
1,678,147,924.43 1,692,694,346.81
[Note]
Zhejiang Yisheng New M aterials Co.,
1,170,327,255.10 1,597,577,255.10
Ltd. [Note]
Ningbo Zhongjin Petrochemical Co., Ltd.
735,500,000.00 538,000,000.00
[Note]
The Company [Note] 305,000,000.00 230,000,000.00
Zhejiang Rongtong Chemical Fiber New
486,657,018.90 21,596,060.00
M aterial Co., Ltd. [Note]
Zhejiang Shengyuan Chemical Fiber Co., 165,288,400.00 40,288,400.00
175 / 187
2023 Semi-annual Report
Ltd. [Note]
Dalian Yisheng New M aterials Co., Ltd.
19,500,000.00
[Note]
Zhejiang Rongtong Logistics Co., Ltd. 109,276,591.92 294,356,317.53
Zhejiang Derong chemicals Co. Ltd. 261,793,212.01 175,832,956.88
Suzhou Shenghui Equipment Co., Ltd. 19,581,790.48 35,726,908.47
Ningbo Qingzhi Chemical Terminal Co.,
3,192,564.66 11,606,791.20
Ltd.
Ningbo Rongxiang Logistics Co., Ltd. 7,324,253.61
Daishan Chenyu Real Estate Co., Ltd. 20,855,214.64 5,541,000.66
Electric Power Branch, Thermal Power
Co., Ltd. of Ningbo Economic and 12,062.48
Technological Development Zone
Ningbo United Group Co., Ltd. 8,058.00 8,058.00
Guangsha (Zhoushan) Energy Group Co.,
27,056.95
Ltd.
Dongzhan Shipping Co., Ltd. 4,563,302.75
Zhejiang Saintyear Textile Co., Ltd. 527,003.00
SAUDI ARABIAN OIL COM PANY 1,101,073,292.67 2,184,202,912.13
Sabic (China) Holding Co Ltd 33,015,867.24
Subtotal 26,557,577,288.88 44,964,014,088.02
Notes payable Suzhou Shenghui Equipment Co., Ltd. 6,351,362.24
Subtotal 6,351,362.24
Contract liabilities and
Zhejiang Petroleum Integrated Energy
other current liabilities 21,780,947.40 1,061,404.81
Sales Co., Ltd.
Zhejiang Jurong Petroleum & Chemical
1,825,881.25
Sales Co., Ltd.
Zhoushan ZPC Zhougang Tugboat Co.,
1,137,583.79 1,639,886.33
Ltd.
Zhejiang Saintyear Textile Co., Ltd. 45,602.11 45,602.11
Ningbo Shengmao Trading Co., Ltd. 2,807,202.46
Subtotal 25,771,335.76 4,572,774.50
Zhejiang Rongsheng Holding Group Co.,
Other payables 4,075,672,124.62 1,539,513,447.19
Ltd.
Zhejiang Yisheng Petrochemical Co., Ltd. 787,044,725.00 989,433,904.99
Zhejiang Yixin Chemical Fiber Co., Ltd. 1,015,495.53
Subtotal 4,862,716,849.62 2,529,962,847.71
[Note]: They are the letters of credit issued by the Company and its subsidiaries, which were discounted after
being received by Rongsheng Petrochemical (Singapore) Pte Ltd, Zhejiang Rongtong Chemical Fiber New Material
Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Dalian Rongxincheng Trading Co., Ltd., Zhejiang Petroleum &
Chemical Co., Ltd., the Company, Zhejiang Yisheng New Materials Co., Ltd. and Ningbo Zhongjin Petrochemical
Co., Ltd.
176 / 187
2023 Semi-annual Report
XIII. Commitments and Contingencies
1. Major commitments
Significant commitments at the balance sheet date
1. As of June 30, 2023, the number of letters of credit issued but not withdrawn in the financial institutions,
including Bank of Communications Hangzhou Xiaoshan Sub-Branch by the Company and its holding subsidiaries
Zhejiang Shengyuan Chemical Fiber Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Zhejiang Petroleum &
Chemical Co., Ltd., Zhejiang Yongsheng technology Co. Ltd., Rongsheng Petrochemical (Singapore) Pte Ltd.,
Ningbo Zhongjin Petrochemical Co., Ltd., Zhejiang Yisheng New Materials Co., Ltd. and Zhejiang Yongsheng
technology Co. Ltd. were RMB 8,459.9070 million, USD 7,640.7192 million, EUR 132.3433 million, GBP 629,000.
2. As of June 30, 2023, the letters of guarantee of the Company and its subsidiaries not yet due are as follows:
Unit：RM B 10,000
Name of issuing Guarantee
Issuing bank Beneficiary
company amount
Industrial and Commercial Bank of China Zhejiang Petroleum & Hangzhou Customs of the
CNY87,070.00
Limited, Zhoushan Branch Chemical Co., Ltd. People’s Republic of China
Hangzhou Xiaoshan Sub-branch of Bank of Zhejiang Petroleum & Hangzhou Customs of the
CNY10,590.50
Communications Co., Ltd. Chemical Co., Ltd. People's Republic of China
Zhoushan Branch of Bank of Communications Zhejiang Petroleum & Hangzhou Customs of the
CNY36,970.00
Co., Ltd. Chemical Co., Ltd. People’s Republic of China
Hangzhou Branch of Standard
Shanghai Pudong Development Bank Co., Ltd. Zhejiang Petroleum &
Chartered Bank (China) CNY42,000.00
Zhoushan Branch Chemical Co., Ltd.
Limited
Shanghai Pudong Development Bank Co., Ltd. Zhejiang Petroleum & Hangzhou Customs of the
CNY146,185.00
Zhoushan Branch Chemical Co., Ltd. People’s Republic of China
China Construction Bank Corporation Zhejiang Petroleum & Hangzhou Customs of the
CNY17,120.00
Zhoushan Branch Chemical Co., Ltd. People’s Republic of China
China Construction Bank Corporation Zhejiang Petroleum & Zhoushan Customs of the
CNY24.00
Zhoushan Branch Chemical Co., Ltd. People’s Republic of China
Agricultural Bank of China Limited Xiaoshan Zhejiang Petroleum & Hangzhou Customs of the CNY46,970.00
Branch Chemical Co., Ltd. People’s Republic of China
Zhejiang Petroleum & Hangzhou Customs of the
Huaxia Bank Co., Ltd., Zhoushan Branch CNY18,000.00
Chemical Co., Ltd. People’s Republic of China
Zhejiang Petroleum & Hangzhou Customs of the
Bank of China Co., Ltd., Zhoushan Branch CNY31,540.00
Chemical Co., Ltd. People’s Republic of China
Zhejiang Petroleum & China CNTC International
Bank of China Co., Ltd., Zhoushan Branch CNY20.00
Chemical Co., Ltd. Tendering Co., Ltd.
Zhejiang Petroleum & Guiyan Resources (Yimen)
Bank of China Co., Ltd., Zhoushan Branch CNY8,616.86
Chemical Co., Ltd. Co., Ltd
Zhejiang Petroleum & Hangzhou Customs of the
Ping An Bank Co., Ltd. Ningbo Branch CNY29,300.00
Chemical Co., Ltd. People’s Republic of China
China Construction Bank Corporation Dalian Yisheng Dahua Zhengzhou Commodity
CNY22,680.00
Ganjingzi Sub-branch Petrochemical Co., Ltd. Exchange
Dalian Jinpu New Area Branch of Bank of Yisheng Dahua Zhengzhou Commodity
CNY31,080.00
China Limited Petrochemical Co., Ltd. Exchange
Dalian Jinpu New Area Branch of Bank of Yisheng Dahua Yisheng Dahua Petrochemical
CNY10,000.00
China Limited Petrochemical Co., Ltd. Co., Ltd.
177 / 187
2023 Semi-annual Report
XIV. Events after the Balance Sheet Date
1. Description of other events after the balance sheet date
Important non-adjusting events
Zhejiang Rongsheng Holding Group (hereinafter referred to as Rongsheng Holding or the Transferor), the
controlling shareholder of Rongsheng Petrochemical Co., Ltd. (hereinafter referred to as the Company or
Rongsheng Petrochemical), entered into a Share Purchase Agreement on March 27, 2023 with the strategic partner
Aramco Overseas Company B.V (hereinafter referred to as the Transferee or AOC), a wholly-owned subsidiary of
Saudi Arabian Oil Company (hereinafter referred to as Saudi Aramco), under which Rongsheng Holding proposed
to transfer 1,012,552,501 shares of the Company held by it to AOC by agreement. Meanwhile, Rongsheng
Petrochemical signed the Strategic Cooperation Agreement with Saudi Aramco to establish a strategic cooperation
relationship, and the Company and its subsidiaries signed a series of business c ooperation agreements with Saudi
Aramco and/or its affiliates under the Strategic Cooperation Agreement to promote the realization of the strategic
objectives and long-term sustainable development of both parties.
The Company received the Confirmation of Agreement to Transfer Shares of a Listed Company from the
Shenzhen Stock Exchange provided by the controlling shareholder on July 19, 2023, and the agreement to transfer
shares has obtained the Confirmation of Securities Transfer Registration issued by China Securities Depository and
Clearing Corporation Limited on July 20, 2023. The number of shares transferred is 1,012,552,501.
On July 21, 2023, Rongsheng Holding has received the full payment of the transfer price from AOC.
XV. Other Important Matters
1. Segment information
(1) Determination basis and accounting policies for reporting segments
(1) Determination basis and accounting policies for reporting segments
The operating income and operating costs of the Company classified by product are detailed in Note VII 39 to
these financial statements.
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.
(2) Financial information of the reporting segments
Unit: RM B
Oil refining Chemical Polyester fiber Inter-
Trade
Item production production manufacturing segment Total
business
business business business offset
Revenue from -
62,537,771,453 100,626,810,70 82,570,928,62 154,208,585,0
main 7,355,725,882.65 98,882,651,60
.17 8.74 2.55 59.79
businesses 7.32
M ain business 53,349,353,931 96,063,964,036 7,108,535,699.28 81,503,685,38 - 139,557,422,6
178 / 187
2023 Semi-annual Report
costs .09 .14 9.87 98,468,116,38 71.72
4.66
-
9,852,081,940 349,187,246,3
Total assets 333,370,429,386.32 58,857,318,585.71 52,892,583,56
.54 48.77
3.80
-
6,560,552,956 255,426,500,6
Total liabilities 226,114,301,803.33 37,767,913,830.73 15,016,267,94
.80 48.10
2.76
2. Others
2. Other important transactions and events impacting the investor ’s decision-making
Taking the actual needs of the Company’s business development into account, the Company and its subsidiaries
utilized the futures market to carry out futures investment business during the period in order to hedge the risk of
price fluctuations of the Company’s major raw materials and products. As of June 30, 2023, the Company and its
subsidiaries deposited futures margin of RMB196,283,951.92 accordingly for holding futures contracts.
XVI. Notes to Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit: RM B
Ending balance Beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Category Book Book
Proport Proport
Proport value Proport value
Amount Amount ion of Amount Amount ion of
ion ion
accrual accrual
Individual
provision
for bad
debts
Accounts
receivable
with
provision
235,209, 100.00 13,045,3 222,163, 74,726,7 100.00 3,932,59 70,794,1
for bad debt 5.55% 5.26%
170.80 % 60.76 810.04 89.47 % 5.52 93.95
reserves
based on
aging
portfolio
235,209, 100.00 13,045,3 222,163, 74,726,7 100.00 3,932,59 70,794,1
Total 5.55% 5.26%
170.80 % 60.76 810.04 89.47 % 5.52 93.95
Accounts receivable with provision for bad debt reserves based on aging portfolio:
Unit: RM B
Ending balance
Name
Book balance Bad-debt provision Proportion of accrual
Aging portfolio 235,209,170.80 13,045,360.76 5.55%
Total 235,209,170.80 13,045,360.76
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2023 Semi-annual Report
For provision for bad debt reserves of the accounts receivable by the general model of the expected credit loss,
relevant information on bad debt reserves is disclosed based on the disclosure method of other receivables:
□Applicable Not applicable
Disclose according to aging
Unit: RM B
Aging Ending balance
Within 1 year (inclusive of 1 year) 230,120,836.58
1-2 years 3,127,651.72
2-3 years 1,048,755.34
Above 3 years 911,927.16
Total 235,209,170.80
(2) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RM B
The amount of change in the current period
Beginning Ending
Category Recovered or
balance Provision Write-off Others balance
returned
Provision made for
bad debt reserves
3,932,595.52 9,112,765.24 13,045,360.76
based on aging
portfolio
Total 3,932,595.52 9,112,765.24 13,045,360.76
(3) Accounts receivable of top 5 ending balances collected by debtors
Unit: RM B
Ending balance of
Ending balance of accounts Proportion in a total ending balance
Company name provision for bad
receivable of accounts receivable
debts
Company 1 204,427,371.48 86.91% 10,221,368.57
Company 2 4,276,808.31 1.82% 213,840.42
Company 3 2,304,090.13 0.98% 115,204.51
Company 4 2,101,500.00 0.89% 105,075.00
Company 5 1,626,277.04 0.69% 81,313.85
Total 214,736,046.96 91.29%
2. Other receivables
Unit: RM B
Item Ending balance Beginning balance
Dividends receivable 300,000,000.00 300,000,000.00
Other receivables 374,551,215.09 374,169,712.95
180 / 187
2023 Semi-annual Report
Total 674,551,215.09 674,169,712.95
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RM B
Project (or investee) Ending balance Beginning balance
Hong Kong Sheng Hui Co., Ltd. 300,000,000.00 300,000,000.00
Total 300,000,000.00 300,000,000.00
2) S ignificant dividends receivable aged over 1 year
Unit: RM B
Reason for the
Ending Whether impairment occurs and its
Project (or investee) Aging unrecovered
balance judgment basis
amount
Hong Kong Sheng Hui Above 3 Subsidiaries operate normally, and no risk is
300,000,000.00 Unrecovered
Co., Ltd. years expected in the recovery of funds.
Total 300,000,000.00
3) Bad debt provision
□Applicable Not applicable
(2) Other receivables
1) Classification of other receivables by nature
Unit: RM B
Nature of account Ending book balance Beginning book balance
Transactions between related parties
373,770,147.28 373,727,461.92
within the consolidation scope
Deposit guarantee receivable 600,000.00 600,000.00
Petty cash receivable, etc. 2,412,353.56 2,050,211.43
Total 376,782,500.84 376,377,673.35
2) Bad debt provision
Unit: RM B
S tage I S tage II S tage III
Expected credit loss Expected credit loss for
Bad-debt provision Expected credit Total
over the entire duration the entire duration
loss in the next
(without credit (credit impairment has
12 months impairment) occurred)
Balance as of January 1, 2023 23,031.73 2,184,928.67 2,207,960.40
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2023 Semi-annual Report
The balance as of January 1,
2023 in the current period
--Transferred to Stage II -570.00 570.00
Provision in current period 18,107.10 570.00 4,648.25 23,325.35
Balance as of June 30, 2023 40568.83 1140.00 2,189,576.92 2,231,285.75
Book balance changes with significant changes in loss provisions in the current period
□Applicable Not applicable
Disclose according to aging
Unit: RM B
Aging Ending balance
Within 1 year (inclusive of 1 year) 1,081,523.92
1-2 years 11,400.00
2-3 years 373,500,000.00
Above 3 years 2,189,576.92
Total 376,782,500.84
3) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RM B
The amount of change in the current period
Beginning Ending
Category Recovered or
balance Provision Write-off Others balance
returned
Provision made for bad
debt reserves based on 2,207,960.40 23,325.35 2,231,285.75
aging portfolio
Total 2,207,960.40 23,325.35 2,231,285.75
4) Top five debtors with the biggest ending balances of other accounts receivable
Unit: RM B
Proportion in Ending balance
Nature of total ending
Company name Ending balance Aging of provision for
payment balance of other
bad debts
receivables
Company 1 Current accounts 373,500,000.00 2-3 years 99.13%
Petty cash
Company 2 1,287,371.67 Above 3 years 0.34% 1,287,371.67
receivable, etc.
Deposit
Company 3 guarantee 600,000.00 Above 3 years 0.16% 600,000.00
receivable
Company 4 Current accounts 153,392.48 Within 1 year 0.04%
Petty cash
Company 5 121,000.00 Above 3 years 0.03% 121,000.00
receivable, etc.
Total 375,661,764.15 99.70% 2,008,371.67
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2023 Semi-annual Report
3. Long-term equity investment
Unit: RM B
Ending balance Beginning balance
Provis Provis
Item ion ion
Book balance for Book value Book balance for Book value
impai impai
rment rment
Investment in
40,289,393,720.56 40,289,393,720.56 39,462,393,720.56 39,462,393,720.56
subsidiaries
Investment in
joint ventures 3,848,530,285.55 3,848,530,285.55 3,742,216,481.79 3,742,216,481.79
and associated
enterprises
Total 44,137,924,006.11 44,137,924,006.11 43,204,610,202.35 43,204,610,202.35
(1) Investment in subsidiaries
Unit: RM B
183 / 187
2023 Semi-annual Report
Increase and decrease in the current period Ending
Beginning balance Ending balance (book balance of
Investee Additional Reduced Provision for
(book value) Others value) provision for
investment investment impairment impairment
Zhejiang Petroleum & Chemical Co.,
28,457,242,115.34 28,457,242,115.34
Ltd.
Ningbo Zhongjin Petrochemical Co.,
5,990,201,140.04 5,990,201,140.04
Ltd.
Zhejiang Shengyuan Chemical Fiber
2,030,140,000.00 2,030,140,000.00
Co., Ltd.
Dalian Yisheng Investment Co., Ltd. 1,468,204,457.48 1,468,204,457.48
Rongsheng Petrochemical (Singapore)
620,889,560.00 620,889,560.00
Pte. Ltd.
Zhejiang Yongsheng Technology Co.,
198,306,537.70 198,306,537.70
Ltd.
Hong Kong Sheng Hui Co., Ltd. 141,419,910.00 141,419,910.00
Rongsheng International Trading Co.,
100,000,000.00 100,000,000.00
Ltd.
Rongxiang Chemical Fiber Co., Ltd. 3,000,000.00 3,000,000.00
Rongsheng International Trading
1,000,000.00 1,000,000.00
(Hainan) Co., Ltd.
Rongsheng Chemical (Shanghai) Co.,
40,000,000.00 40,000,000.00
Ltd.
Rongsheng (Zhoushan) New M aterials
130,000,000.00 427,000,000.00 557,000,000.00
Co., Ltd.
Rongsheng New M aterial (Taizhou)
281,990,000.00 400,000,000.00 681,990,000.00
Co., Ltd.
Total 39,462,393,720.56 827,000,000.00 40,289,393,720.56
(2) Investment in joint ventures and associated companies
Unit: RM B
184 / 187
2023 Semi-annual Report
Increase and decrease in the current period
Investmen Ending
Other balance of
Beginning t gains or Declared
Addition comprehe Provision Ending balance provision
Investor balance (book Reduced losses Other distributio
al nsive for Othe (book value) for
value) investmen recognize equity n of cash
investme income impairme rs impairme
t d under changes dividends
nt adjustmen nt nt
the equity or profits
ts
method
I. Joint ventures
II. Associated enterprise
Zhejiang Yisheng 1,476,728,206.1 4,041,804. 3,943,117. 1,484,713,128.1
Petrochemical Co., Ltd. 0 61 43 4
Zhejiang Xiaoshan Rural 2,006,079,840.1 131,295,91 11,387,579 39,685,918 2,109,077,414.6
Commercial Bank Co., Ltd. 5 4.20 .14 .80 9
-
Ningbo Hengyi Trading 6,836,819.
231,733,252.44 15,457,757 223,112,314.43
Co., Ltd. 72
.73
Zhejiang Kunsheng
3,945,821.
Petroleum & Chemical 13,221,013.56 17,166,834.73
17
Sales Co., Ltd.
Zhejiang Jurong Petroleum
14,454,169.54 6,424.02 14,460,593.56
& Chemical Sales Co., Ltd.
3,742,216,481.7 146,126,78 - 39,685,918 3,848,530,285.5
Subtotal
9 3.72 127,061.16 .80 5
3,742,216,481.7 146,126,78 - 39,685,918 3,848,530,285.5
Total
9 3.72 127,061.16 .80 5
4. Operating income and operating costs
(1) Details
Unit: RM B
185 / 187
2023 Semi-annual Report
Current amount incurred Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary business 1,880,440,264.50 1,851,745,862.85 1,791,602,246.63 1,726,342,682.30
Other Businesses 24,368,383.63 23,043,241.14 2,315,703,365.56 2,314,975,483.25
Total 1,904,808,648.13 1,874,789,103.99 4,107,305,612.19 4,041,318,165.55
(2) Breakdown of revenue generated by contracts with customers by major categories
1) Breakdown of income by commodity type
Current amount incurred Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Polyester chemical
1,880,440,264.50 1,851,745,862.85 1,791,602,246.63 1,726,342,682.30
fiber film
Trade and others 24,368,383.63 23,043,241.14 2,315,703,365.56 2,314,975,483.25
Total 1,904,808,648.13 1,874,789,103.99 4,107,305,612.19 4,041,318,165.55
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 1,904,166,446.29 4,106,663,410.36
Revenue recognized at a certain period of time 642,201.84 642,201.84
Subtotal 1,904,808,648.13 4,107,305,612.19
(3) The revenue recognized in the current period included in the opening book value of contract liabilities is
RMB 149,074,706.33.
5. Investment income
Unit: RM B
Amount incurred in the previous
Item Current amount incurred
period
Long-term equity investment income 146,126,783.72 116,775,484.71
calculated by equity method
Investment income from disposal of
-34,198,249.74 -42,222,518.53
financial instruments
Total 111,928,533.98 74,552,966.18
XVII. Supplementary Information
1. Breakdown of non-recurring gains and losses in the current period
Unit: RM B
Item Amount
Gains or losses on disposal of non-current assets (including the part written-off with provision for asset
9,776,120.31
impairment accrued)
Government grants recognized in current gain and loss (excluding grants entitled to in quota or ration according
to certain criteria under national policies and which are closely relevant to the Company ’s normal business 100,951,165.76
operations)
Fund possession cost included in current gain and loss charged to non-financial enterprises 99,037.73
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2023 Semi-annual Report
Except for effective hedging business related to the normal business operations of the Company, changes in
gains and losses of fair value arising from trading financial assets, trading financial liabilities, investment income
320,428,570.35
obtained from disposal of trading financial assets, trading financial liabilities and available-for-sale financial
assets
Other non-operating revenues and expenditures except for the aforementioned items 1,189,521.25
Other profit/loss items falling within the definition of non-recurring gain or loss 3,709,266.29
Less: Affected amount of income tax 23,818,799.21
Affected amount of minority equity 150,925,256.19
Total 261,409,626.29
Other gain/loss items falling within the definition of non-recurring gain or loss:
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
2. Return on equity and earnings per share (EPS)
Earnings per share (EPS )
Weighted average return
Profit within the reporting period Basic earnings per share Diluted earnings per
on net assets
(RMB per share) share (RMB per share)
Net profit attributable to ordinary
-2.42% -0.11 -0.11
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
-2.98% -0.14 -0.14
deducting non-recurring 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
Rongsheng Petrochemical Co., Ltd.
Chairman: Li Shuirong
August 25, 2023
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