Rongsheng Petrochemical Co., Ltd.
2023 Annual Report
April 2024
Full Text of 2023 Annual ReportForging Ahead with Confidence and Zeal to a Promising Future
——A letter to investorsDear investors,Nature thrives and a thousand ships set sail on new voyages. In the splendid days of April,our annual report arrives, as promised.Investors are the cornerstone of the market, and listed companies form its foundation. Ourannual report presents a pivotal opportunity for meaningful communication between us and ourinvestors. As a public company, we understand the paramount importance of earning the trust andsupport of our investors for our sustained, long-term growth. Throughout the past year, we haveproactively navigated a complex market landscape, bolstered our internal management, andstrengthened our core competitive edge. As we expand our global presence, we remain steadfastin our commitment to rewarding our shareholders, ensuring that every investor shares the benefitsof our growth. Moving forward, we are resolute in our commitment to integrity and excellence aswe pursue our vision of becoming a century-old, trillion-scale enterprise, continually deliveringreturns to our investors with unwavering dedication.What may seem ordinary is often extraordinary; what appears simple is frequentlyfraught with challenges. The year 2023 marked the commencement of fully embodying the spiritof the 20th National Congress of the Communist Party of China and served as a pivotal year forthe implementation of the 14th Five-Year Plan, bridging past initiatives with future aspirations.During this year, the global economy continued its sluggish recovery, grappling with mountingcomplexity, severity, and uncertainty in the external landscape. Domestically, we faced a shortfallin effective demand. Within the petrochemical industry, including our company, RongshengPetrochemical, we faced considerable pressures such as shrinking profit margins and subduedconsumer demand. Despite these obstacles, Chinese petrochemical companies demonstratedremarkable resilience. By leveraging China's extensive industrial chain and vast market scale, wenavigated external pressures and internal challenges. Our industry is now on the path to recovery,with both production and supply steadily improving. As market demand gradually rebounds, weare witnessing the restoration of corporate profitability.Calmly navigating through tempests, advancing undeterred by the storm. This year, with
Rongsheng Petrochemical Co., Ltd. Full Text of 2023 Annual Report
the united efforts of all our employees, we have firmly maintained stable enterprise operations,meticulously cultivated our “field of responsibility” in safety production, and forged our “steelspine” for high-quality development. In 2023, the Company realized operating revenues of
325.112 billion yuan, an increase of 12.46%; year-on-year; as of the end of the year, our totalassets reached 374.918 billion yuan, up 3.40% from the beginning of the year. As a leadingprivate refining enterprise in China, we have continued to enhance our reputation and globalinfluence throughout 2023. We are proud to have been recognized with several prestigiousaccolades, including ranking 7th in the Brand Finance 2023 Global Chemical Industry's MostValuable Brands , 11th among the Global Top 100 Chemical Companies, 16th in C&EN's GlobalTop 50 Chemical Firms , and 15th in the Global Chemical Companies Billion Dollar Club.Additionally, we are committed to innovative practices in corporate governance and socialresponsibility. Our efforts have been acknowledged through achievements such as the 2023 BestPractice Case in Board Governance among Listed Companies, 2023 China's Best ESG Practicesamong Listed Companies, and the 1st China Reform Cup ESG Golden Bull Award for the Top 50Companies Excelling in Carbon Neutrality.Joining forces for collaborative success and mutual benefits. This year, RongshengPetrochemical formally established a strategic partnership with Aramco . In a notable transaction,Aramco Overseas Company B.V. (“AOC”), a wholly-owned subsidiary of Aramco, acquired a 10%plus one share in Rongsheng Petrochemical for 24.6 billion yuan, making it the second-largestshareholder. Meanwhile, Rongsheng Petrochemical and its subsidiary entered into acomprehensive set of agreements with Aramco and its affiliate. This collaboration has garneredconsiderable attention in China’s capital markets and the global petrochemical industry. It plays acrucial role in enhancing our crude oil security capabilities, expanding overseas sales channels,optimizing capital utilization efficiency, and realizing our strategic objectives. This partnershiprepresents a significant milestone in our international cooperation efforts and marks the beginningof our internationalization journey. Currently, the alignment between China's Belt and Roadinitiative and Saudi Arabia’s Vision 2030 propels our energy cooperation into a new era. Throughthis robust alliance, Rongsheng Petrochemical and Aramco engage in resource sharing, leverageeach other's strengths, and ensure mutual benefits. This not only strengthens our competitiveposition in the global petrochemical sector but also fosters the deepening of comprehensive
Rongsheng Petrochemical Co., Ltd. Full Text of 2023 Annual Report
energy trade cooperation between China and Saudi Arabia.
Driving development through determined action and charting new courses withvigorous effort. This year, our entire team consistently demonstrated a spirit of confrontingchallenges and pushing forward with determination, achieving notable breakthroughs in projectmanagement. We strategically directed our focus toward the high-end petrochemical industrychain, successfully started up a series of new projects and facilities. These include ZPC's newunits for producing 400,000 tonnes of ABS, 380,000 tonnes of polyether, 270,000/600,000 tonnesof PO/SM, 100,000 tonnes of maleic anhydride rare-earth rubber alongside a 70,000-tonne nickel-based maleic anhydride rubber unit, a 60,000-tonne solution polymerized styrene-butadienerubber unit, a 300,000-tonne vinyl acetate unit, and a 1,000-tonne alpha-olefin pilot plant.Additionally, Yongsheng Technology 's expansion project now produces 250,000 tonnes offunctional polyester film annually. Encompassing new energy, new materials, organic chemicals,synthetic resins, and synthetic rubber, our industrial chain continues to deepen, while our productrange becomes increasingly robust and comprehensive. In January of this year, we also announcedthe investment and construction of the Jintang new materials project, with all major projectsprogressing systematically.Proactively addressing needs with decisive actions. This year has seen significantstructural adjustments in the capital markets, including the full implementation of the registrationsystem and phased tightening of IPOs and refinancing. Additionally, new regulations such asbuybacks and increases in holdings have been introduced. Amidst a record number of buybacksby A-share listed companies, we have stood out for two consecutive years with buyback amountsamong the highest in the market. In response to the directive from the Political Bureau of theCentral Committee to "stimulate the capital market and boost investor confidence", we initiatedour third buyback phase in August 2023. Building on the success of the previous phases, wherewe repurchased shares totaling 3.988 billion yuan, we expanded the range of the third phase from1-2 billion yuan to 1.5-3 billion yuan. To date, our cumulative repurchase amount has reached
6.98 billion yuan, accounting for 5.46% of the total shares. In January 2024, we receivednotification from our controlling shareholder about a planned increase in shareholding by 1-2billion yuan over the next six months, demonstrating their confidence in our long-termdevelopment. Both the first and second phases of our share repurchase have been successfully
Rongsheng Petrochemical Co., Ltd. Full Text of 2023 Annual Report
completed, and the third phase, along with the controlling shareholder's increase plan, is stillongoing. Rongsheng’s substantial investment in buybacks reflects our confidence in theCompany's future prospects and our commitment to protecting the interests of our investors whilemaintaining the market value of the Company.Celebrating our past achievements and setting our sights higher for the future. The year2024 will mark the 75
th
anniversary of the founding of the People’s Republic of China, and willalso be a critical year for realizing the objectives and tasks of the 14
th
Five-Year Plan. We arededicated to meticulously crafting a blueprint for the enterprise's high-quality development. Ourfocus will be on pioneering investment and development strategies, bolstering safety management,accelerating project construction, enhancing internal controls, and enhancing the competitivenessof our scientific research and innovation. Additionally, we are dedicated to nurturing newproductive forces and actively driving the digital and intelligent transformation of the industry,thus initiating a new era of green development. As we embark on this new journey, our future isbright, but the road ahead will not be plain sailing. "Only through relentless forging does iron turnto steel; only with long-term vision can we plan for centuries." Let us embody the dynamic spiritof dragons and horses and maintain our unwavering determination to progress against all odds.With the courage to "remake the heavens and the earth," we will continue to innovate with thevigor of a dragon and the agility of a tiger. Step by step, we will translate our grand aspirationsinto a splendid reality, continuously propelling our company to achieve new advancements andbreakthroughs.Brimming with confidence, Rongsheng Petrochemical remains steadfast in joining forceswith all shareholders and partners who trust and support our growth. Together, we will embark ona new journey, dedicated to achieving long-term prosperity!
Board of Directors of Rongsheng Petrochemical Co., Ltd.
April 2024
Section I Important Notice, Table of Contents and Definitions
The Board of Directors, the Board of Supervisors and the directors,supervisors and senior management of the Company warrant that the contentsin this annual report are true, accurate, and complete and have no falserepresentations, misleading statements or material omissions, and they shallseverally and jointly accept legal responsibility for such contents.
Li Shuirong, Chairman of the Company, Wang Yafang, the person incharge of the Company’s accounting and Zhang Shaoying, the person incharge of the Accounting Firm (Accounting Officer), hereby makerepresentations in respect of the truthfulness, accuracy and completeness of thefinancial statements in this annual report.
All directors have attended the board meeting to deliberate on the report.
This annual report is prepared in Chinese and English respectively. Incase of any discrepancy between the two versions, the Chinese version shallprevail.
The Company's profit distribution plan reviewed and approved by theBoard: Taking the total 9,573,144,542 shares of the Company as the base, acash dividend of RMB 1.0 (tax included) per 10 shares will be distributed to allshareholders. There will be no equity dividend (tax included) or conversion ofequity reserve into share capital of the Company.
Contents
Section I Important Notice, Table of Contents and Definitions ...... 1
Section II Company Profile and Key Financial Indicators ...... 6
Section III Management Discussion and Analysis ...... 11
Section IV Corporate Governance ...... 61
Section V Environmental and Social Responsibility ...... 86
Section VI Important Matters ...... 94
Section VII Changes in Shares and Shareholders ...... 129
Section VIII Preferred Shares ...... 137
Section IX Bonds ...... 138
Section X Financial Reports ...... 142
Contents of Documents for Future Reference
(1) The financial statements containing signature and seals of the person in charge of the Company, theperson in charge of the accounting works and the person in charge of the Accounting Firm (Accounting Officer);
(2) The original auditor’s report with the seal of Pan-China Certified Public Accountants LLP and thesignature and seal of the certified public accountants;
(3) Written confirmation from directors, senior management and supervisors of the Company on the 2023Annual Report;
(4) The originals of all company documents and announcements that are disclosed to the public via mediadesignated by CSRC during the reporting period;
(5) The place where the above-mentioned documents are maintained: Office of the Board of Directors.
Definitions
| Term | Refers to | Definition |
| Company, the Company, Rongsheng Petrochemical | Refers to | Rongsheng Petrochemical Co., Ltd. |
| Rongsheng Holding | Refers to | Zhejiang Rongsheng Holding Group Co., Ltd., controlling shareholder of the Company |
| Rongtong Logistics | Refers to | Zhejiang Rongtong Logistics Co., Ltd., a subsidiary of the Company |
| Rongsheng Venture Capital | Refers to | Zhejiang Rongsheng Venture Capital Co., Ltd., a subsidiary of the Company’s controlling shareholder |
| Saudi Aramco | Refers to | Saudi Arabian Oil Company |
| ZPC | Refers to | Zhejiang Petroleum & Chemical Co., Ltd., a subsidiary of the Company |
| Zhongjin Petrochemical | Refers to | Ningbo Zhongjin Petrochemical Co., Ltd., a subsidiary of the Company |
| Yisheng Investment | Refers to | Dalian Yisheng Investment Co., Ltd, a subsidiary of the Company |
| Shengyuan Chemical Fiber | Refers to | Zhejiang Shengyuan Chemical Fiber Co., Ltd., a subsidiary of the Company |
| Rongxiang Chemical Fiber | Refers to | Rongxiang Chemical Fiber Co., Ltd., a subsidiary of the Company |
| Hong Kong Sheng Hui | Refers to | Hong Kong Sheng Hui Co., Ltd., a subsidiary of the Company |
| Rongsheng (Singapore) | Refers to | Rongsheng Petrochemical (Singapore) Pte. Ltd., a subsidiary of the Company |
| Rongsheng International Trading | Refers to | Rongsheng International Trading Co., Ltd., a subsidiary of the Company |
| Yongsheng Technology | Refers to | Zhejiang Yongsheng Technology Co. Ltd., a subsidiary of the Company |
| Rongsheng New Materials (Zhoushan) | Refers to | Rongsheng (Zhoushan) New Materials Co., Ltd., a subsidiary of the Company |
| Zhejiang Yisheng | Refers to | Zhejiang Yisheng Petrochemical Co., Ltd., a joint stock subsidiary of the Company |
| Hengyi Trading | Refers to | Ningbo Hengyi Trading Co., Ltd., a joint stock subsidiary of the Company |
| Xiaoshan Rural Commercial Bank | Refers to | Zhejiang Xiaoshan Rural Commercial Bank, a joint stock subsidiary of the Company |
| Zhejiang Petroleum | Refers to | Zhejiang Petroleum Co., Ltd., a joint stock subsidiary of ZPC |
| ZPC (Singapore) | Refers to | ZPC (Singapore) Pte. Ltd., a subsidiary of ZPC |
| Jintang Logistics | Refers to | Jintang Logistics Co., Ltd, a subsidiary of ZPC |
| Dingsheng Petrochemical | Refers to | Zhejiang Dingsheng Petrochemical Engineering Co., Ltd, a joint stock 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 |
| Yisheng New Materials | Refers to | Zhejiang Yisheng New Materials Co., Ltd., a holding subsidiary of Zhongjin Petrochemical |
| Niluoshan New Energy | Refers to | Ningbo Niluoshan New Energy Co., Ltd., a subsidiary of Zhongjin Petrochemical |
| Yisheng Dahua | Refers to | Yisheng Dahua Petrochemical Co., Ltd., a subsidiary of Yisheng Investment |
| Hainan Yisheng | Refers to | Hainan Yisheng Petrochemical Co., Ltd., a joint stock subsidiary of Yisheng Investment |
| Hong Kong Yisheng | Refers to | Hong Kong Yisheng Co., Ltd., a subsidiary of Hainan Yisheng Petrochemical |
| Dalian Rongxincheng | Refers to | Dalian Rongxincheng Trading Co., Ltd., a subsidiary of Yisheng Dahua |
| Rongtong New Materials | Refers to | Zhejiang Rongtong Chemical Fiber New Material Co., Ltd., a subsidiary of Yisheng Dahua |
| Dongjiang Technology | Refers to | Zhejiang Dongjiang Green Petrochemical Technology Innovation Center Co., Ltd. |
| Yisheng Chemical | Refers to | Ningbo Yisheng Chemical Co., Ltd, a subsidiary of Hong Kong Sheng Hui |
| Shanghai Brilliance Rating | Refers to | Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. |
| The Securities Supervision Commission, CSRC | Refers to | China Securities Regulatory Commission |
| Stock exchange, SZSE | Refers to | Shenzhen Stock Exchange |
| Guosen Securities | Refers to | Guosen Securities Co., Ltd. |
| Yuan, 10,000 yuan | Refers to | RMB yuan, 10,000 yuan |
| Reporting period | Refers to | January 1, 2023 to December 31, 2023 |
Section II Company Profile and Key Financial IndicatorsI. Company Profile
| Stock abbreviation | Rongsheng Petrochemical | Stock code | 002493 |
| Abbreviation before change (if any) | None | ||
| Listed on | Shenzhen Stock Exchange | ||
| Company name in Chinese | Rongsheng Petrochemical Co., Ltd. | ||
| Company abbreviation in Chinese | Rongsheng Petrochemical | ||
| Company name in the foreign language (if any) | RONGSHENG PETROCHEMICAL CO., LTD. | ||
| Company abbreviation in the foreign language (if any) | RSPC | ||
| Legal representative of the Company | Li Shuirong | ||
| Place of registration | No. 98 Hongyang Road, Yinong Town, Xiaoshan District, Hangzhou, Zhejiang Province | ||
| Zip code of the registered address | 311247 | ||
| Historical changes in the registered address of the Company | None | ||
| Office address | Building of Zhejiang Rongsheng Holding Group, Yinong Town, Xiaoshan District, Hangzhou, Zhejiang Province | ||
| Zip code of office address | 311247 | ||
| Company website | http://www.cnrspc.com | ||
| rspc@rong-sheng.com | |||
II. Contact Information
| Secretary of the Board of Directors | Representative of securities affairs | |
| Name | Quan Weiying | Hu Yangyang |
| Address | Building of Zhejiang Rongsheng Holding Group, Yinong Town, Xiaoshan District, Hangzhou | Building of Zhejiang Rongsheng Holding Group, Yinong Town, Xiaoshan District, Hangzhou |
| Telephone | 0571-82520189 | 0571-82520189 |
| Fax | 0571-82527208 extension 8150 | 0571-82527208 extension 8150 |
| qwy@rong-sheng.com | yangyang@rong-sheng.com |
III. Information Disclosure and Archiving Place
| Website of the stock exchange where the Company discloses the annual report | Shenzhen Stock Exchange（http://www.szse.cn） |
| Name and website of the media selected by the Company to disclose the annual report | Securities Times, China Securities Journal, CNINFO (www.cninfo.com.cn) |
| Archiving place for the annual report of the Company | Office of the Board of Directors |
IV. Registration Changes
| Uniform social credit code | 91330000255693873W |
| Changes in the Company's main business since its listing (if any) | No change |
| Changes of previous controlling shareholders (if any) | No change |
V. Other Relevant InformationThe accounting firm hired by the Company
| Name of accounting firm | Pan-China Certified Public Accountants (Special General Partnership) |
| Office address of the accounting firm | Tower B, China Resources Building, No.1366, Qianjiang Road, Shengcheng District, Hangzhou |
| Name of signing accountants | Jia Chuan, Xu Haihong |
The sponsor institution engaged by the Company to perform the continuous supervision responsibility during thereporting period
□Applicable ?Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during thereporting period
□Applicable ?Not applicable
VI. Key Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate prior years’ accounting data?Yes □NoReasons for retroactive adjustment or restatementChanges in accounting policies
| 2023 | 2022 | Increase or decrease of this year compared with the previous year | 2021 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Operating income (RMB) | 325,111,614,268.09 | 289,094,841,612.76 | 289,094,841,612.76 | 12.46% | 183,074,930,286.51 | 183,074,930,286.51 |
| Net profit attributable to shareholders of the listed company (RMB) | 1,158,146,248.89 | 3,340,162,428.95 | 3,340,713,394.56 | -65.33% | 13,236,054,388.76 | 13,236,054,388.76 |
| Net profit attributable to shareholders of the listed company net of non-recurring gain and loss (RMB) | 820,092,947.36 | 2,011,613,277.71 | 2,012,164,243.32 | -59.24% | 12,844,186,998.53 | 12,844,186,998.53 |
| Net cash flow from operating activities (RMB) | 28,079,221,508.73 | 19,058,136,885.36 | 19,058,136,885.36 | 47.33% | 33,564,785,433.94 | 33,564,785,433.94 |
| Basic earnings per share (RMB per share) | 0.12 | 0.33 | 0.33 | -63.64% | 1.31 | 1.31 |
| Diluted earnings per share (RMB per share) | 0.12 | 0.33 | 0.33 | -63.64% | 1.31 | 1.31 |
| Weighted average return on net assets | 2.48% | 6.87% | 6.87% | -4.39% | 30.76% | 30.76% |
| At the end of 2023 | At the end of 2022 | Increase or decrease at the end of this year compared with the end of the previous year | At the end of 2021 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Total assets (RMB) | 374,918,440,311.68 | 362,587,416,687.68 | 362,588,594,491.52 | 3.40% | 338,230,598,101.17 | 338,230,598,101.17 |
| Net assets attributable to shareholders of the listed company (RMB) | 44,335,891,085.79 | 47,260,382,901.11 | 47,261,560,704.95 | -6.19% | 49,251,305,948.40 | 49,251,305,948.40 |
Reasons for changes in accounting policies and correction of accounting errors
On December 13, 2022, the Ministry of Finance ("MOF") issued Interpretation No. 16 of the AccountingStandards for Business Enterprises ("ASBE") (Caikuai [2022] No. 31), which clarifies that a single transactioninitially does not exempt from the recognition of deferred taxes an equal amount of taxable temporary differencesand deductible temporary differences arising from a lease. The Company implemented the above provisions ofInterpretation No. 16 from January 1, 2023, and retrospectively adjusted the temporary differences arising fromlease liabilities and right-of-use assets recognized as a result of a single transaction to which Interpretation No. 16applies.The lower of the net profit before and after deducting non-recurring profit and loss of the Company in the lastthree financial years is negative, and the audit report of the last year shows that the Company's sustainableoperation ability is uncertain.
□Yes ?No
The lower of the net profit before and after deducting non-recurring profit and loss is negative
□Yes ?No
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in financial reports disclosed in accordance with internationalaccounting standards and China’s accounting standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in the net profits and net assets disclosed in thefinancial report under international accounting standards and China’s accounting standards.
Differences in net profits and net assets in financial reports disclosed in accordance with foreignaccounting standards and China’s accounting standards
□Applicable ?Not applicable
In the reporting period of the Company, there is no difference in the net profits and net assets disclosed in thefinancial report under foreign accounting standards and China’s accounting standards.
VIII. Key Quarterly Financial Indicators
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 69,720,518,872.77 | 84,804,764,879.52 | 84,522,027,833.53 | 86,064,302,682.27 |
| Net profit attributable to shareholders of the listed company | -1,467,816,809.90 | 341,183,193.35 | 1,234,236,470.21 | 1,050,543,395.23 |
| Net profit attributable to shareholders of the listed company net of non-recurring gain and loss | -1,572,912,484.98 | 184,869,242.14 | 1,258,321,459.23 | 949,814,730.97 |
| Net cash flow from operating activities | -11,060,718,806.71 | 8,781,939,375.81 | 28,508,836.15 | 30,329,492,103.48 |
Whether there is significant difference between the above financial indicators or the total sum of them and thefinancial indicators related to the quarterly report and semiannual report disclosed by the Company
□Yes ?No
IX. Items and Amounts of Non-recurring Gain and Loss
?Applicable □Not applicable
Unit: RMB
| Item | Amount of 2023 | Amount of 2022 | Amount of 2021 |
| Gains on disposal of non-current assets (including write-off of provision for impairment) | 34,130,889.49 | 14,208,115.78 | 10,301,050.55 |
| Government grants included in profit or loss (excluding those closely related to operating activities of the Company, satisfying government policies and regulations, enjoyed based on certain standards, and continuously affecting gains or losses of the Company) | 60,299,389.39 | 2,359,477,514.76 | 114,893,264.14 |
| Gains on changes in fair value of financial assets and financial liabilities held by non-financial enterprises, and gains from disposal of financial assets and financial liabilities, excluding those arising from hedging business related to operating activities | 483,856,260.59 | 292,348,639.74 | 785,398,586.27 |
| Fund possession charge from non-financial entities and included in profit or loss | 248,144.66 | 205,188.67 | 2,035,569.54 |
| Gains on assets consigned to the third party for investment or management | 625,599.45 | ||
| Gain/loss from external entrusted loans | 26,123,140.37 | ||
| Income generated from investment cost for acquiring subsidiaries, associated enterprises or joint ventures falling below the fair value of | 281,497.24 |
| share in the recognizable net asset of the investee when the investment is conducted | |||
| Other non-operating revenues and expenditures except for the aforementioned items | -7,549,562.66 | -9,253,736.65 | 6,062,244.39 |
| Other profit/loss items falling within the definition of non-recurring gain or loss | 14,297,547.73 | 2,748,797.01 | 9,366,961.04 |
| Less: Affected amount of income tax | 37,178,195.47 | 371,798,967.48 | 134,234,216.27 |
| Affected amount of minority shareholders’ equity (after tax) | 210,051,172.20 | 959,386,400.59 | 428,986,306.49 |
| Total | 338,053,301.53 | 1,328,549,151.24 | 391,867,390.23 |
Other gain/loss items falling within the definition of non-recurring gain or loss:
□Applicable ?Not applicable
The Company has no other gain/loss items falling within the definition of non-recurring gain or loss.Explanation of the circumstances in which the non-recurring gain and loss items listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure of Companies Publicly Issuing Securities-Non-recurring Gainsand Losses are defined as recurring gains and losses.?Applicable □Not applicable
| Item | Amount involved (yuan) | Reason |
| Net non-recurring gains and losses attributable to owners of the parent company in 2022 | 1,328,549,151.24 | |
| Net non-recurring gains and losses attributable to owners of the parent company calculated in accordance with "Interpretative Announcement for Information Disclosure by Public Securities Issuers No. 1 - Non-Recurring Gains and Losses (Revised in 2023)" for 2022 | 388,666,262.68 | |
| Difference | 939,882,888.56 |
Section III Management Discussion and AnalysisI. Industry of the Company during the Reporting PeriodLooking back on last year, although the world economy started recovery, the growth was still slow andunbalanced, and the persistent turmoil in the international situation and the persistent negative impact of thepandemic on the supply chain still significantly dragged down the pace of recovery. In the face of multipledifficulties, China has achieved high-quality and steady development, and made a series of progress in theconstruction of modern industrial system. 2023 is the first year to fully implement the spirit of the 20th NationalCongress of the Communist Party of China, and it is also a crucial year to carry out the "14th Five-Year" Plan.The annual GDP exceeds RMB 126 trillion, with a year-on-year increase of 5.2%, ranking among the world'smajor economies, and its contribution rate to world economic growth is expected to exceed 30%, making it thebiggest engine of world economic growth. China petrochemical industry has a complete industrial chain withgreat development resilience and potential, and its long-term positive fundamentals have not changed. In thepast year, the petrochemical industry accelerated its recovery, production and supply increased steadily, andmarket demand gradually improved.
(1) Global economy
During the reporting period, the global economic recovery faced multiple dilemmas. Despite theaggressive rate hike by the Federal Reserve Board and the lack of endogenous motivation in the Europeaneconomy, the world economy still did not get rid of the "stagflation" dilemma of high inflation and sluggishdemand. In 2023, the world economy showed a weak recovery trend, with a global inflation rate of 7%, and aglobal GDP growth rate of only 3%. The external environment was more complicated and changeable due tomultiple factors, such as great power game and geopolitics.
Source: Hithink RoyalFlush iFind
(2) China's economic situation
This year, in the face of an unusually complicated international environment and arduous tasks of reform,development and stability, China's economic development reached a new level, with its GDP exceeding RMB126 trillion, up by 5.2%, ranking among the leading economies in the world in terms of growth rate. GDPincreased by 4.5%, 6.3%, 4.9% and 5.2% respectively in the four quarters of 2023, showing a trend of low inthe beginning, high in the middle and stable in the end. The profits of industrial enterprises have recovered sinceAugust, but due to the drag in the first half of the year, a negative growth was recorded throughout the year. In2023, the total profits of industrial enterprises above designated size in China reached RMB 7.69 trillion, with ayear-on-year growth rate of -2.3% and a previous value of -4.0%, maintaining a recovery trend. Althoughindustrial enterprises are facing difficulties such as the world economic downturn, blocked industrial exports,insufficient domestic demand and falling prices of industrial products, they have continued to recover overallwith the gradual effectiveness of various policies and measures to promote the development of manufacturingindustry.
Source: National Bureau of Statistics
(3) Situation of the petrochemical industry
As the foundation and pillar industry of national economy, petrochemical industry is one of the key andmajor industries to promote high-quality economic development. According to the statistics of China Petroleumand Chemical Industry Federation, in 2023, the petrochemical industry realized an operating income of RMB
15.95 trillion, with a year-on-year decrease of 1.1%; a total profit of RMB 0.87 trillion, down 20.7% year-on-year; and a total import and export volume of USD 0.95 trillion, down 9.0% year-on-year. The poorperformance of petrochemical industry is mainly due to the large price drop of crude oil, natural gas and most
chemical products.In terms of subdivided sectors in petrochemical industry: the oil and gas sector realized an operatingincome of RMB 1.44 trillion, down 3.9% year-on-year; and a profit of RMB 301.03 billion, down 15.5% year-on-year. The oil refining sector realized an operating income of RMB 4.96 trillion, up 2.1% year-on-year; and aprofit of RMB 65.6 billion, up 192.3% year-on-year. The chemical sector achieved an operating income ofRMB 9.27 trillion, down 2.7% year-on-year; and a profit of RMB 486.26 billion, down 31.2% year-on-year.Because of the low base in 2022, the operating income and profit of the oil refining sector in the three majorsectors have both increased, while the operating income and profit of the oil and gas sector and chemical sectorhave decreased, which is related to the high base of the oil and gas sector and the chemical sector in 2022.
In order to realize the healthy development of the petrochemical industry, in 2023, the NationalDevelopment and Reform Commission, the Ministry of Industry and Information Technology and other relevantministries and commissions successively promulgated a number of industrial policies closely related to thepetrochemical industry. These policies help stabilize the growth of the petrochemical industry, accelerate thestructural adjustment and intensive cluster development of the industry, and consolidate and strengthen thesupply chain of the industrial chain, thus laying a good foundation for the high-quality development of theindustry.
| S/N | Time | Policy |
| 1 | March | Guide for the Establishment of Energy Industry Standard Plan in 2023 |
| 2 | March | Green Industry Guidance Catalogue (2023 Edition) (Draft for Comments) |
| 3 | June | Benchmark Level and Standard Level of Energy Efficiency in Key Industrial Areas (2023 Edition) |
| 4 | August | Work Plan for Steady Growth of Petrochemical Industry |
| 5 | October | Guiding Opinions on Promoting Green, Innovative and High-quality Development of Oil Refining Industry |
| 6 | November | Construction Plan for National Peak Carbon Dioxide Emissions Pilot |
In 2023, the petrochemical industry has made new breakthroughs and new progress in scientific andtechnological innovation, green and low-carbon transformation and digital upgrading, deepening internationalcooperation, cultivating world-class enterprises and modern industrial clusters, research on industrial policiesand major issues, etc. However, there is still a certain gap from the goal of high-quality development, and theshortage of high-end products and high-performance materials has not improved. Enterprises need to enhancetheir independent innovation capabilities and focus on the high-performance of key core technologies, majorcommon technologies and materials.II. Main Businesses of the Company during the Reporting PeriodProcurement mode of main raw materials
Unit: RMB
| Main raw materials | Procurement mode | Proportion in the total purchase amount | Significant changes in settlement method | Average price in the first half of the year | Average price in the second half of the year |
| Crude oil | Quotation purchase | 66.23% | No | 4,063.20 | 4,395.86 |
| Naphtha | Quotation purchase | 1.95% | No | 4,993.18 | 4,824.56 |
| Fuel oil | Quotation purchase | 3.21% | No | 3,359.39 | 3,898.00 |
| PX | Quotation purchase | 7.57% | No | 7,187.90 | 7,320.01 |
Energy purchase prices accounting for more than 30% of total production costs
□Applicable ?Not applicable
Production technology of main products
| Main products | Development stage of production technique | Core technical personnel | Proprietary technology | Product R&D advantages |
| Ethylene, Propylene | Stage of technology application | Several core technical personnel | Introduction and innovation | Using the patented technology of TS &W company of the United States, the raw materials will be cracked in the high-temperature cracking furnace tube by steam cracking to generate a low molecular weight hydrocarbon mixture, that is, pyrolysis gas. The pyrolysis gas containing ethylene, propylene and other products will be quenched, compressed, alkali washed, dried, hydrogenated, and undergo cold-thermal separation and methanization to produce polymer grade ethylene and polymer grade propylene and other products. |
| FDPE | Stage of technology application | Several core technical personnel | Introduction and innovation | Univation company's Unipol process technology (low-pressure gas-phase production process) can produce high, medium and linear low-density polyethylene products. Using ethylene as the main raw material and butene-1 or Hexene-1 as a comonomer, linear low density and some medium and high-density polyethylene granular resins can be produced. |
| HDPE | Stage of technology application | Several core technical personnel | Introduction and innovation | The HDPE unit adopts the INNOVENES slurry loop polymerization process of INEOS Company, and produces bimodal and unimodal polyethylene products through two loop reactors in series. The reaction should be carried out at medium temperature and pressure. With mild reaction conditions, the proprietary concentration equipment can improve the slurry concentration and reduce the load of the solvent recovery unit. |
| EVA/LDPE | Stage of technology application | Several core technical personnel | Introduction and innovation | The LUPOTECHT tubular reactor technology from LyondellBasell company can switch to produce LDPE homopolymer resin particles of different brands and EVA copolymer resin particles with VA content less than or equal to 28% in one production line. |
| PP | Stage of technology application | Several core technical personnel | Introduction and innovation | LyondellBasell company has developed the Spherizone process based on Spheripol process technology. The Spherizone process based on multizone circulating reactor (MZCR) technology is adopted to divide a reactor into two reaction areas to control the reaction conditions independently. The gradually growing polymer particles will circulate quickly and repeatedly in the two reaction areas to realize the "onion-shaped" uniform mixing in the polymer particles. |
| PC | Stage of technology application | Several core technical personnel | Introduction and innovation | 1) Diphenyl carbonate unit: DPC is produced by using the patented technology of ester exchange between dimethyl carbonate and phenol of lummus company in the United States. DPC products are of high quality and suitable for the production of high-quality polycarbonate; 2) Polymerization unit: the patented technology of non-phosgene transesterification and melt polycondensation of EPC company in German is adopted. Main features: compared with phosgenation, the technology has lower emission of environmental pollutants, higher product yield, lower monomer residue and larger single line production capacity. |
| BPA | Stage of technology application | Several core technical personnel | Introduction and innovation | Bisphenol A (BPA) ion exchange resin process technology uses phenol and acetone as raw materials and catalyzes the condensation reaction in an acidic medium to produce BPA. |
| PX | Stage of technology application | Several core technical personnel | Introduction and innovation | The adsorption and separation unit adopts UOP Parex process and ADS-37/47 adsorbent, that is, to use PDEB as desorption agent, and produce PX products by simulated moving bed technology and supporting adsorption and separation process. 2# xylene fractionation unit adopts fractionation process matched with Parex and isomerization, to cut the raw materials meeting the feed requirements for adsorption and separation unit through distillation column separation; The isomerization unit adopts |
| UOP Isomar process technology and Shell OparisNext ethylbenzene conversion catalyst to increase xylene production through isomerization reaction by using the mixed C8 aromatic hydrocarbons with lean PX extracted from the side line of Parex raffinate column are used as raw materials. | ||||
| Benzene | Stage of technology application | Several core technical personnel | Introduction and innovation | The extraction and distillation unit adopts UOP sulfolane extraction and distillation process, that is, to use sulfolane as solvent and light and heavy whole oil as raw materials to produce extract oil (mixed aromatic hydrocarbon) and raffinate oil. The disproportionation unit adopts UOP Tatoray process and TA- 32 disproportionation catalyst, to increase the production of xylene and benzene by using toluene and C9/C10A as raw materials for disproportionation reaction. The B/T fractionation unit adopts a fractionation process matched with extraction and disproportionation, to separate benzene products and toluene by distillation in benzene column and toluene column with the mixed aromatic hydrocarbons extracted and disproportionated as raw materials. The 1# xylene fractionation unit adopts the fractionation process matched with reforming and disproportionation, to cut the raw materials meeting the feed requirements for adsorption and separation device and other devices through distillation column separation. |
| ABS | Stage of technology application | Several core technical personnel | Introduction and innovation | The proprietary technology of Zhejiang Zhiying Petrochemical Technology Co., Ltd. is used to produce ABS resin with acrylonitrile (AN), butadiene (BD) and styrene (SM) as the main raw materials by emulsion grafting-bulk SAN blending method. The emulsion grafting-bulk SAN blending process is mature, because of the direct use of monomer polymerization to produce ABS, the product quality is stable, the variety is wide, the production is flexible, and the product switching is easy. The emulsion grafting-bulk SAN blending method has the advantages of less investment and low production cost and is easy to realize mass production. |
| Polyether polyol | Stage of technology application | Several core technical personnel | Introduction and innovation | It adopts the anion catalytic synthesis process technology, bimetallic cyanide (DMC) catalytic synthesis process technology, and POP process technology of Innovare Engineering Holding Limited. The first type of product is a polyoxypropylene polyol product, which is obtained by copolymerization with propylene oxide and ethylene oxide using glycerol or organic amines as initiator; The other type is polymer polyols, which are obtained by grafting polymerization of acrylonitrile, styrene and other polyols. |
| Solution polymerized styrene-butadiene rubber (SSBR) and rare earth cis-polybutadiene rubber (NDBR) | Stage of technology application | Several core technical personnel | Introduction and innovation | The process technology of SSBR and NDBR is the patented technology of ICB company in Germany. The production method of solution polymerized styrene-butadiene rubber (SSBR) is a solution polymerization method, where butadiene and styrene are polymerized in a mixed solvent of normal hexane and cyclohexane in the presence of a polymerization catalyst NBL; The rare earth cis-1,4-polybutadiene rubber (NDBR) is produced by solution polymerization. Butadiene is polymerized in an n-hexane solution in the presence of NdV, ACT and AOC catalysts. |
| PTA | Leading position in China | Several core technical personnel | Introduction and innovation | The core technology of this product has its own independent intellectual property rights. The Company has participated in the formulation of the national standards for the energy consumption limit per unit product of this product. The large-scale device greatly reduces the investment cost per unit product. Besides, the continuous improvement of new technologies and new equipment has shortened the process. For example, the oxidation unit adopts pressure filter instead of vacuum filter, dryer, intermediate silo and other auxiliary systems; The refining unit adopts pressure filter, which changes two-stage separation into one-stage separation. Compared with the traditional process, the number of equipment is reduced, the maintenance cost is also greatly cut, the reliability of equipment is improved, and the stability of the device is improved accordingly. At present, the pressure filter technology has been well applied in PTA plant and has become a development trend at |
| present. In addition, the application of new materials in PTA production has further reduced the investment cost. At present, dual-phase steel is used to replace part of titanium alloy and 317L, which reduces the material cost. In terms of material consumption, all PTA patent manufacturers have done a lot of work in optimizing oxidation reaction conditions, adjusting catalyst ratio, increasing catalyst recovery, PTA mother liquor solid recovery, methyl acetate recovery and so on, and all of them have been successfully applied to industrial devices. The use of these optimizations and new technologies greatly reduce the material consumption of PTA production. In terms of energy consumption, as the oxidation reaction is exothermic, a lot of heat will be released during such reaction. At present, PTA patent technologies use the reaction heat to generate low-pressure steam of different grades for air compressors and other low-pressure steam users in the device (such as dehydration tower). By using this method, the oxidation tail gas at the top of the oxidation reactor is cooled and energy is recovered; Hydrogenation reaction is a high-temperature and high-pressure reaction. During the crystallization process, with the gradual reduction of pressure, a large number of steam with different grades will flash out, which is basically used to heat the feed of hydrogenation reactor, and can be heated to about 260°C. Oxidation tail gas is high-pressure gas, part of which is used as the driving power of air compressor, and the rest is used for conveying gas and inert gas in the device to users. In addition, the process arrangement is optimized as much as possible, to make full use of the heat exchange of hot and cold process fluids. Through the above measures, PTA basically does not need to supply low-pressure steam from outside at present, but only needs a certain amount of high-pressure steam to heat the feed of hydrogenation reactor from about 260°C to about 286°C; The drive of the air compressor does not need to supply energy from outside. In order to reduce energy consumption, some other measures have been taken, such as increasing the feed concentration of hydrogenation reactor and increasing the circulation of mother liquor in TA unit. At present, the comprehensive energy consumption of PTA has been greatly reduced, and the energy consumption of products is better than the advanced value of national standards. | ||||
| Polyester | Large-scale application | Several core technical personnel | Introduction and innovation | Maximum output, maximum conversion rate and minimum energy consumption; By tapping the equipment potential, achieve the purpose of improving production and efficiency without increasing energy consumption; Improve energy utilization rate and reduce production cost; Eliminate the filter blockage, waste of labor, save the cost of bagging, and bring considerable economic benefits to the company; Make the basic magnesium sulfate whisker, tetrapod-like zinc oxide whisker, magnesium salt whisker, β-type silicon nitride whisker, melamine cyanurate, microencapsulated red phosphorus flame retardant, ethylene glycol, etc., into flame retardant and anti-dripping whisker glycol solution through a certain manufacturing process by using the company's patented technology; Add the flame-retardant and anti-dripping whisker glycol solution into the slurry preparation tank, and prepare the flame-retardant and anti-dripping polyester through esterification, pre-polycondensation and final polymerization. |
| Multi-functional polyester bottle grade chip | Leading position in China | Several core technical personnel | Introduction and innovation | The core technology of this product adopts the current international advanced high-temperature crystallization cutting and UOP solid-phase polycondensation process, with a short process, low energy consumption, and domestic leading performance of comprehensive energy consumption per unit product. |
| Fiber | Large-scale application | Several core technical personnel | Introduction and innovation | Through the independent design and installation of multiple addition points, online adding equipment with various additional materials, dynamic and static mixing equipment, oil nozzle, winding machine, etc. on the melt direct spinning line, the existing equipment was optimized to obtain benefits from the differentiated and high-end products of polyester melt direct spinning and realize transformation and upgrading. The contradiction between large capacity polyester plants and the production of small batch and multi-agent functional differentiated fibers has been solved. The main products include flame-retardant, antistatic, colored and full extinction functional modified fibers. |
| Texturing | Mass production | Several core technical | Introduction and innovation | The technology is independently developed and completed by the Company. It is used to process DTY and FDY in uniform military green, black and other colors. No dyeing is required after weaving, so the products hardly lose colors in daily use and are mostly used to weave fabrics for special purposes. |
| personnel | ||||
| Multifunctional polyester film | Mass production | Several core technical personnel | Introduction and innovation | By directly sending the polymerized melt to a film drawing production line for film making, a series of processes of chip manufacturing, transportation, drying and melting are skipped, and a large amount of cost can be saved. |
| Backplate film | Mass production | Several core technical personnel | Introduction and innovation | Anti-hydrolysis, anti-ultraviolet and anti-oxidation additives are used, and proprietary equipment and targeted processes are used to manufacture thin films with weatherability characteristics, which can be applied to solar photovoltaic backplanes. |
| Film grade section | Mass production | Several core technical personnel | Introduction and innovation | By adding composite conductive substances to polyester, the problem of difficult adhesion due to high casting speed on high-speed production lines has been solved, making it applicable to high-speed film drawing production lines. |
| High silicon masterbatch | Mass production | Several core technical personnel | Introduction and innovation | By solving the problem of dispersion of micron-sized particles, the silica particles are added into a reaction kettle in the polymerization process, so that the master batch with high silica content is prepared, and the master batch can be widely applied to the production of polyester films. |
| Matte master batch | Mass production | Several core technical personnel | Introduction and innovation | Through the dispersion of silicon particles, add silica with larger particle size and smaller void ratio to the reaction kettle during the polymerization process, so as to prepare matte master batch with high fog and low matte, which can be used in the production of polyester matte film. |
| Matte film | Mass production | Several core technical personnel | Introduction and innovation | Use the technical advantages of true three-layer die in film drawing production line, to add special matte master batch to any single-layer or multi-layer structure, in order to realize the manufacture of a full range of products such as single-sided matte, double-sided matte, low matte, medium matte and high matte products and other products with additional functions. |
Production capacity of main products
| Main products | Design capacity (10,000 tons/year) | Capacity utilization | Capacity under construction (10,000 tons/year) | Investment and construction |
| Fuel | 1366 | Adjust flexibly according to market | ||
| Para-xylene (PX) | 1060 | |||
| M-xylene (MX) | 20 | |||
| Benzene (BZ) | 330 | |||
| Ethylene glycol (MEG) | 240 | |||
| Purified terephthalic acid (PTA) | 2150 | |||
| Purified isophthalic acid (PIA) | 30 | |||
| Bi-oriented polyester film (BOPET) | 43 | |||
| Pre-oriented yarn (POY) | 46 | 25 | Shengyuan chemical fiber differential fiber project is under construction | |
| Fully drawn yarn (FDY) | 54 | 25 | Shengyuan chemical fiber differential fiber project is under construction | |
| Draw texturing yarn (DTY) | 42 | 25 | Shengyuan chemical fiber differential fiber project is under construction | |
| Bottle grade chip (PET) | 250 | 280 | ||
| Full-density polyethylene (FDPE) | 90 | |||
| High-density polyethylene (HDPE) | 65 | |||
| High-density polyethylene (LDPE) | 80 | 40 | ZPC high performance resin project is under construction | |
| Ethylene vinyl acetate copolymer (EVA) | 30 | 40 | ZPC high performance resin project is under construction | |
| Polypropylene (PP) | 180 | |||
| Acrylonitrile butadiene styrene (ABS) | 40 | 120 | ZPC high performance resin project is under construction | |
| Styrene monomer (SM) | 240 | |||
| Polycarbonate (PC) | 52 | |||
| Phenol (PH) | 80 | |||
| Acetone (ACT) | 50 | |||
| Methyl methacrylate (MMA) | 19 | |||
| Acrylonitrile (AN) | 52 | |||
| Butadiene (BD) | 70 | |||
| Vinyl acetate (VAC) | 30 | |||
| Sulfur (S) | 121 | |||
| Polyether glycol/Polyether polyol (PPG/POP) | 38 | |||
| Low cis-polybutadiene rubber (LCBR) | 10 | |||
| Solution styrene butadiene rubber (SSBR) | 6 |
Types of products in major chemical parks
| Major chemical parks | Types of products |
| Zhoushan Green Petrochemical Base | Products in the petrochemical industrial chain |
| Ningbo Petrochemical Economic＆Technological Development Zone | Products in the petrochemical industrial chain |
| DaGuShan Chemical Industrial Park at Jinpu New Area, Dalian | Products in the petrochemical industrial chain |
EIA approvals being applied for or newly obtained during the reporting period?Applicable □Not applicable
| Project | EIA approval |
| Dangerous goods container yard of 40 million tons/year refining and chemical integration project of Zhejiang Petroleum & Chemical Co., Ltd. | ZHDJS [2023] No.6 |
| Supporting terminal project (Phase I) multi-purpose terminal reconstruction project of 40 million tons/year refining and chemical integration project of Zhejiang Petroleum & Chemical Co., Ltd. | ZHDJS [2023] No.9 |
| α olefin plant of Zhejiang Petroleum & Chemical Co., Ltd. | ZHDJS [2023] No.13 |
| 3# aromatics raffinate oil olefin removal project of Zhejiang Petroleum & Chemical Co., Ltd. | DHJB [2023] No.8 |
| High-voltage XLPE insulated cable project of Zhejiang Petroleum & Chemical Co., Ltd. | ZHDJS [2023] No.14 |
| High performance resin project of Zhejiang Petroleum & Chemical Co., Ltd. | ZHDJS [2023] No.18 |
| Raw material product transportation project of Ningbo Zhongjin Petrochemical Co., Ltd. | ZHX [2023] No.36 |
| Intelligent functional fiber project with an annual output of 500,000 tons (Shengyuan Phase II) of Zhejiang Shengyuan Chemical Fiber Co., Ltd. | Approval in progress |
The listed company was subject to abnormal production stoppage during the reporting period
□Applicable ?Not applicable
Relevant approvals, permits, qualifications, and validity terms?Applicable □Not applicable
| Unit approved | Qualification / license | Approval department | Period of validity |
| Rongsheng Petrochemical | Safety Production Standardization Certificate | Hangzhou Municipal Emergency Management Department | April 2026 |
| ZPC | National Industrial Product Manufacture Licensing Certificate | Zhejiang Provincial Administration for Market Regulation | December 30, 2025 |
| ZPC | Registration Certificate for Hazardous Chemicals | Zhejiang Provincial Registration Center for Chemicals | June 13, 2026 |
| ZPC | Safe Production License | Zhejiang Provincial Emergency Management Department | December 27, 2026 |
| ZPC | Pollutant Discharge Permit | Zhoushan Ecological Environment Bureau | July 18, 2024 |
| ZPC | License for Port Operation | Zhoushan Shipping and Port Administration | October 11, 2026 |
| ZPC | Project Approval List Specified in Technical Standards (3# jet fuel) | Aircraft Airworthiness Approval Department of Civil Aviation Administration | July 13, 2024 |
| ZPC | Project Approval List by Civil Aviation Oil Testing Unit (3# jet fuel) | Aircraft Airworthiness Approval Department of Civil Aviation Administration | May 17, 2024 |
| ZPC | Special License for Production of MCCs (Phase I) | Ministry of Industry and Information Technology (MIIT) | May 07, 2026 |
| ZPC | Special License for Production of MCCs (Phase II) | Ministry of Industry and Information Technology (MIIT) | November 28, 2027 |
| ZPC | Import Qualification for Non-state Trade of Crude Oil | Ministry of Commerce | / |
| ZPC | Export Qualification for Non-state Trade of Refined Oil | Ministry of Commerce | / |
| ZPC | Import Qualification for Non-state Trade of Refined Oil (Fuel Oil) | Ministry of Commerce | / |
| Zhongjin Petrochemical | Pollutant Discharge Permit | Ningbo Ecological Environment Bureau (Zhenhai Branch) | December 31, 2025 |
| Zhongjin Petrochemical | Radiation Safety Permit | Ecological Environment Department of Zhejiang Province | July 16, 2028 |
| Zhongjin Petrochemical | Safe Production License | Zhejiang Provincial Emergency Management Department | June 04, 2026 |
| Zhongjin Petrochemical | Registration Certificate for Hazardous Chemicals | Registration Center for Chemicals of Emergency Management Department | October 13, 2025 |
| Niluoshan New Energy | Pollutant Discharge Permit | Ningbo Ecological Environment Bureau (Zhenhai Branch) | February 09, 2027 |
| Yisheng Dahua | Safe Production License | Liaoning Provincial Emergency Management Department | March 28, 2025 |
| Yisheng Dahua | License for Port Operation of the People's Republic of China | Dalian Traffic and Transportation Bureau | July 24, 2025 |
| Yisheng Dahua | Registration Certificate for Hazardous Chemicals | Liaoning Provincial Work Safety Service Center | November 15, 2026 |
| Yisheng Dahua | Pollutant Discharge Permit | Dalian Ecological Environment Bureau | October 13, 2028 |
| Hainan Yisheng | Safe Production License | Department of Ecology and Environment of Hainan Province | March 29, 2027 |
| Hainan Yisheng | Hazardous Chemical Business License | Administration Approval Service Bureau of Yangpu Economic & Technological Development Area | March 08, 2025 |
| Hainan Yisheng | License for Port Operation of the People's Republic of China | Transportation, Maritime and Port Bureau of Yangpu Economic & Technological Development Area | September 30, 2025 |
| Hainan Yisheng | Level III Enterprise for Work Safety Standardization (Hazardous Chemicals) | Hainan Geological Testing and Research Center | July 06, 2024 |
| Hainan Yisheng | Port Shoreline Use Certificate of People's Republic of China (PRC) | Ministry of Transport of the People's Republic of China | May 20, 2065 |
| Hainan Yisheng | Pollutant Discharge Permit | Ecological Environment Bureau of Yangpu Economic Development Zone | May 14, 2026 |
| Hainan Yisheng | Radiation Safety Permit | Department of Emergency Management of Hainan Province | December 26, 2026 |
| Hainan Yisheng | Authentication Certificate and Qualification Certificate of Environment, Quality and Occupational Safety Management System | China Quality Certification Center | May 31, 2026 |
| Hainan Yisheng | Registration Certificate for Hazardous Chemicals | Registration Center for Chemicals of Emergency Management Department | February 03, 2027 |
| Hainan Yisheng | Special Equipment Registration Certificate | Hainan Provincial Bureau of Quality and Technical Supervision | Refer to the boiler inspection qualification period |
| Hainan Yisheng | Port Facility Security Compliance Certificate | Hainan Port and Waterway Administration | August 09, 2026 |
| Hainan Yisheng | Radio Registration Certificate | Hainan Provincial Department of Industry and Information Technology | June 09, 2031 |
| Zhejiang Yisheng | Pollutant Discharge Permit | Ningbo Ecological Environment Bureau (Beilun Branch) | August 02, 2028 |
| Zhejiang Yisheng | Radiation Safety Permit | Ecological Environment Department of Zhejiang Province | November 17, 2024 |
| Shengyuan Chemical Fiber | Safety Production Standardization Certificate | Hangzhou Municipal Emergency Management Department | October 01, 2026 |
| Shengyuan Chemical Fiber | Pollutant Discharge Permit | Hangzhou Ecological Environment Bureau | November 05, 2026 |
| Yongsheng Technology | National Industrial Product Manufacture Licensing Certificate | Zhejiang Provincial Administration for Market Regulation | August 11, 2026 |
| Yongsheng Technology | Pollutant Discharge Permit | Shaoxing Ecology and Environment Bureau | February 06, 2029 |
Engaged in oil processing, oil trade industry?Yes □NoThe Company mainly imports crude oil from abroad as raw materials and engages in the research anddevelopment, production and sales of various oil products, chemicals and polyester products. The Company'sproducts are rich in variety and complete in specifications, covering many fields such as new energy, newmaterials, organic chemicals, synthetic fibers, synthetic resins, synthetic rubber, and oil products, basicallyachieving "from a drop of oil to everything in the world", and constantly upgrading and improving the industrialchain of new materials on the basis of the existing super-large integrated refining base worldwide and completeupstream and downstream facilities.Engaged in chemical fertilizer industry
□Yes ?No
Engaged in pesticide industry
□Yes ?No
Engaged in chlorine-alkali and soda ash industry
□Yes ?No
III. Analysis of Core CompetitivenessAs one of the leading enterprises in the petrochemical industry with leading comprehensive strength inChina, the Company’s core competitiveness is mainly reflected in the following aspects:
(1) Complete industrial synergistic advantages
After years of development and improvement, the Company has seized the opportunity of industrialadjustment, achieved rapid growth, and formed the development strategy of “from a drop of oil to everything inthe world”. Through the extension of the industrial chain, the Company has effectively reduced the businesscost, realized the mutual support of upstream and downstream sectors, and also improved its sustainable
profitability and risk resistance. For example, ZPC can supply PX as raw material for PTA production toshareholder units and related companies, and ethylene glycol as raw material for downstream production ofpolyester bottle chips, films and chemical fibers. The release of ZPC's production capacity has greatlysupplemented the mutual supply demand of raw materials for the development of the Company's industrialchain and realized self-supply and self-sufficiency of raw materials.The interconnection of Zhoushan Green Petrochemical Base and Ningbo Petrochemical Base can realizethe coordinated development of both Ningbo and Zhoushan bases, and pipeline transportation greatly reducesthe risk and cost of ship transportation and land transportation; A large number of light hydrocarbon rawmaterials by-products from Ningbo Petrochemical Base are transported to Zhoushan Green Petrochemical Basethrough pipelines, which can be used as high-quality ethylene raw materials. Surplus oil products fromZhoushan Green Petrochemical Base can be transported to Ningbo Petrochemical Base as high-quality rawmaterials for aromatic hydrocarbon production.
The construction of ZPC Project has supporting facilities that can meet the demand of crude oil supply inthe two phases of the project. The total storage capacity of Mamu crude oil depot and Yushan Island crude oildepot has reached 4.6 million m?, which is the largest storage capacity among domestic refining and chemicalfacilities. As the most concentrated resource allocation base for oil and gas enterprises in China, the ZhejiangFree Trade Zone has an oil depot capacity of more than 30 million m?, including Huangzeshan Island, CeziIsland, and Waidiao Island. Most of the oil pipeline networks are interconnected, making local transportationavailable.
(2) Remarkable location competition advantages
The Company’s production bases are located along the eastern coastline of China, including the “Circum-Bohai Sea Economic Zone” in Dalian City, Liaoning Province; the “Yangtze River Delta Economic Circle” inNingbo City, Zhejiang Province; the “Belt and Road Economic Belt” and the “Maritime Silk Road” in HaikouCity, Hainan Province. Each production base of the Company is adjacent to high-quality ports, connected withcanals and equipped with complete wharf facilities. The main raw materials and other auxiliary raw materialsrequired for production can be unloaded and stored at the chemical material wharf built or rented by theCompany, which has provided convenient transportation of bulk raw materials and inventory adjustment.
ZPC Project is located in the concentrated consumption area of oil products and chemical products, withthe key products marketable. The target market of chemical products is mainly East China and South China,where the economy is the most developed with the most active downstream consumption market forpetrochemical products, and whose related industries such as downstream plastic product processing industry,light industry and daily chemical industry are developed, with strong market acceptance for bulk petrochemicalproducts. Refined oil has many sales channels and enjoys strong policy support and obvious competitiveadvantages. The Ministry of Commerce officially approved granting ZPC the export qualification of non-state-owned trade refined oil. As the first private refining and petrochemical enterprise to obtain export permission,
ZPC took the lead in opening sales channels in Southeast Asia. In the face of the excess supply of domesticrefined oil, this export permission given to ZPC has become more valuable.
(3) Excellent strategic layout advantages
The Company, with inherent strong market sensitivity and flexible decision-making mechanism, can notonly keep a close eye on the market, but also make timely and accurate adjustments to the strategy and seize thepreemptive opportunities of the market under its own mechanism advantages of fast pace and few links. Themanagement has a keen sense of investment, accurate timing for project operation and excellent investment andfinancing capacity. The Company started from polyester chemical fiber, and after years of development, it hasformed a good foundation. With the full-scale operation of the 40 million tons/year refining and chemicalintegration project of its subsidiary in early 2022, ZPC has become the largest single refinery in the world.Relying on the world’s largest single-unit 40 million tons/year refining and chemical integration project of ZPC,the Company has accelerated the layout of downstream new chemical materials, aimed at the field of newenergy and high-end materials, and has deployed a number of new energy and new material products such asEVA, POE, DMC, PC and ABS, continuously enriching its product chain. With the steady progress of newprojects, the Company’s production capacity of new energy materials, renewable plastics, special syntheticmaterials, and high-end synthetic materials will be expanded in an orderly manner, and the transformation ofnew materials will be gradually accelerated.
(4) Strong R&D and innovation advantages
The Company upholds a technological R&D pattern driven by both independent innovation andcooperation. We have established many world-class R&D platforms, including a high-tech R&D center, aworkstation for academicians and experts, an enterprise technology center, and a post-doctoral science andresearch workstation. Moreover, we engage in active technology exchanges and discussions and promoteindustry-university-research collaboration to acquire resources from universities, the community, and theCompany. With all sectors of society, we jointly promote our research capabilities and technologicaladvancement and together create an innovation ecosystem that is open, healthy, and cooperative, whereeveryone can benefit. In recent years, the Company has continuously stepped up scientific research cooperationwith domestic and foreign countries and increased its R&D investment year by year to maintain a leading levelin the industry.
The Company's main manufacturing subsidiaries are all national high-tech enterprises with strong researchand development strength and rich process operation experience accumulated during long-term productionmanagement, which have gathered the strength of "production, learning, research and use" at home and abroad,carried out research and development with independent innovation, and established an integrated achievementimprovement platform for laboratory innovation, small test, pilot test and industrial demonstration production,and overcome the disadvantage that it is difficult to incubate and transform related achievements although withbasic research by other research institutes in China relying on the Company's flexible system and mechanism
and complete industrial chain advantages, breaking through the final ceiling from scientific researchachievements to industrial promotion and application, boosting industrial technological innovation andupgrading, seizing the technologically leading position, and promoting the Company's high-qualitydevelopment in the terms of technological independence, raw material diversification, high-end products, greenproduction and intelligent industry.
(5) Rich human resources advantages
Focusing on the construction of corporate culture, the Company has formed a favorable workingatmosphere 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 thecultivation of on-the-job staff. Based on reality and comprehensive planning, the Company is constantlybroadening the staff selection platform and formulating an effective incentive mechanism. To maintain thepractical and effective work of the staff, the Company has improved the benefits of employees, optimized theprofessional title assessment system, and clarified the promotion standards and incentives. The Companycombines the employee examination with performance evaluation and replaces evaluations with competition todynamically evaluate employees’ comprehensive quality and form a healthy competition atmosphere ofcompeting through learning and competing for first place. Following the principle of “different measures fordifferent talents and making good use of the strengths of talents”, every employee will have the opportunity togive full play to their abilities.In addition, the Company attaches great importance to the management of talents and teams, and adopt atwo-pronged approach of internal incentives and external cultivation. In terms of internal management, we willpromote the construction of three teams of senior management, high potential and specialization, pay specialattention to talent evaluation and clean education, strengthen skill training and skill recognition, and improvethe quality of employees in all aspects. In terms of external cultivation, we will rely on the cooperation platformof industry, academia and research to actively do a good job in the introduction of highly educated and highlyskilled talents, increase the proportion of high-quality employees, and provide new drivers for the developmentof the enterprise.
(6) Efficient operation and management advantages
The Company adheres to system construction, integrates digitization, intelligence, standardization, process,and regulation into operations; actively strengthens IT construction; comprehensively integrates business linkssuch as sourcing, production, inventory, and sales; and constantly improves the rapid response ability. TheCompany 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 finemanagement. Through years of efforts, the Company's construction in systems such as information,performance appraisal, and credit management are at the leading position in the industry. Meanwhile, throughbrand and cultural construction, the Company has further enhanced its corporate cohesion and brand influence,
won the "No.7 on the List of the Most Valuable Brands in Global Chemical Industry in 2023", "No. 16 amongthe Top 50 Global Chemical Companies in 2023", "No. 5 on the List of the Top 500 Oil and ChemicalEnterprises in Sales Revenue in 2022 (Independent Production and Operation)", "No. 7 on the List of the Top500 Oil and Chemical Listed Companies in Sales Revenue in 2022", "Best Practice Award of the Board ofDirectors of Listed Companies in 2023", "Best Practice Case of ESG of Listed Companies in China in 2023","Golden Bull Prize Top 50 ESG Carbon Neutralization Awards of the First Guoxin Cup", "ESG Progress Caseof Xinhua Credit Jinlan Cup", "Capital Brand High-value Enterprise in Zhejiang Province in 2022", and "Four-star Kunpeng Enterprise in Hangzhou", etc.IⅤ. Core Business Analysis
1. Overview
Rongsheng Petrochemical is one of the leading private petrochemical enterprises in China, ranking 7th inthe list of the most valuable brands in global chemical industry and 16th in the top 50 global chemicalenterprises. The Company is mainly engaged in the research, development, production and sales of all kinds ofoil products, chemicals and polyester products. It has established seven production bases in Bohai EconomicRim, Yangtze River Delta Economic Circle and Hainan Belt and Road Economic Circle, forming five industrialchains of polyester, engineering plastics, new energy, high-end polyolefin and special rubber. It is one of theimportant producers of polyester, new energy materials, engineering plastics and high value-added polyolefin inAsia, with the largest production capacity of chemicals such as PX and PTA in the world.
(1) Main products
The Company's products are rich in variety and complete in specifications, covering many fields such asnew energy, new materials, organic chemicals, synthetic fibers, synthetic resins, synthetic rubber, and oilproducts, basically achieving "from a drop of oil to everything in the world", and constantly upgrading andimproving the industrial chain of new materials on the basis of the existing super-large integrated refining baseworldwide and complete upstream and downstream facilities. At present, the main products are shown in thefollowing figure:
Note: products marked by dotted line / dotted box are products under the plan.
(2) Management measures
Economic recovery was a wave-like process of development amid twists and turns. With a completeindustrial chain, China is a major country in the petrochemical industry in the world, has a large petrochemicalmarket and boasts huge development resilience and potential. During the reporting period, the petrochemicalindustry has accelerated its recovery, with production and supply steadily rising and market demand graduallyimproving. The Company, under the leadership of the Board of Directors and the management, seized theopportunity to realize progress in industrial cooperation, production and operation, technological innovation andteam building, and the details are as follows:
1. Widening the circle of friends to ensure the blossoming of industrial cooperation on multiplefronts
In 2023, Rongsheng Petrochemical's introduction of a strategic investor, Saudi Aramco not only attractedthe attention of the capital market, but also was a landmark foreign cooperation for the Company. We startedcomprehensive long-term cooperation with Saudi Aramco and its related companies on crude oil procurement,raw material supply, chemical sales, refined chemical product sales, crude oil storage and technology sharing.In addition, we also signed cooperation agreements with Jintang, Taizhou and other places for new projects ornew businesses, with partners covering the government, central enterprises and industry giants, and the map ofcooperation expanded to wider areas at home and abroad, achieving blossoming results on multiple fronts andbringing benefits to numerous parties.
2. Holding firm the steering wheel to achieve orderly production and operation
In 2023, we strengthened the foundation of management, the production and operation was generally stable,the scale of main business expanded steadily, and the annual key work achieved tangible results, maintainingthe momentum of healthy development. ZPC processed around 44 million tons of crude oil, achieved theproduction target of high capacity operation of refining and ethylene, and improved all production figures
compared with last year. In 2023, the Company took production protection as the primary goal, fully consideredopportunity cost, imported about 40 million tons of overseas crude oil with reference to the quantity and qualityof resources, and reduced the procurement cost of coal, electricity and natural gas through long term agreementsand other measures. The Company firmly adhered to the market-oriented approach and held weekly meetings tokeep procurement, production and sales in alignment, improving the economic benefits and brand value.
3. Exploring new experimental fields to bear rich fruits in technological innovationIn 2023, a number of technological innovations were realized upstream and downstream of our industrychain. In the refining segment, the new disproportionation catalyst independently developed by ZhongjinPetrochemical realized its first industrialized application in ZPC, breaking the foreign technological control. Inthe polyester segment, Shengyuan Chemical Fiber was selected to be on the Ministry of Industry andInformation Technology’s list of Outstanding Scenarios for Intelligent Manufacturing in 2023; and 14 scientificand technological achievements passed the appraisal, reaching the domestic advanced and leading level. Inaddition, Rongsheng led the establishment of the green petrochemical technology innovation center in Ningbo,which provides an important platform for overcoming technical problems in the petrochemical industry andempowering industrial innovation.
4. Stimulating the vitality to achieve obvious results in team building
In 2023, our team building realized mutual growth between the Company and employees. On the one hand,the Company and its subsidiaries built a platform for employees to effectively improve their vocational skillsthrough comprehensive internal training, job training and technical competitions, setting up skill levelrecognition centers and carrying out independent recognition of vocational skill levels, so that the employees’technical ability and comprehensive quality were continuously improved. On the other hand, employees werealso actively enhancing their self-value and using their actions to win honor for the Company. Last year, theCompany boasted both municipal young craftsmen and Asian Games torchbearers, and a number of teams andindividuals from ZPC and Hainan Yisheng also won national honors such as the National May 1st Labor Medaland the National Workers’ Pioneer, which made Rongsheng’s brand shine brighter.
(3) Operation synergy
1. Controlling shareholder
Rongsheng Holdings ranks 136th among the top 500 enterprises in the world, 40th among the top 500Chinese enterprises and 5th among the top 500 private enterprises in China. At present, the Group has listedcompanies such as Rongsheng Petrochemical (stock code: 002493) and Ningbo United (stock code: 600051),with its business involving oil and gas upstream and trading, coal, logistics, equipment manufacturing, processengineering technology, real estate, venture capital and other fields; Rongtong Logistics, a subsidiary is anational AAAA-level logistics enterprise, which has a mature and stable carrier cooperation operation platform;Suzhou Shenghui Equipment Co., Ltd., a holding company, specializes in the design, manufacture and sales ofpressure vessels, cryogenic equipment, spherical tanks and marine equipment; Shanghai Huanqiu Engineering
Co., Ltd., a joint stock company of the Company, has extremely rich experience in engineering EPC; A numberof projects invested by Rongsheng Venture Capital not only achieved good economic benefits, but alsopromoted the synergy of the industrial chain; In addition, a number of other investments are also constantlyadvancing.
2. Strategic investor
Rongsheng Petrochemical and Saudi Aramco form the upstream and downstream in the industry andmaintain a good foundation for cooperation. The two companies will carry out all-round consultations andcooperation, such as: ① Frontier technology sharing cooperation: The two companies will discuss earnestly tocomplement each other's technologies through their advantages, jointly develop new technologies, processesand equipment to meet the future market demand, and promote them on the market, and at the same time sharethe necessary resources for research and development; ② Stable crude oil supply guarantee: Saudi Aramcosupplies ZPC with high-quality crude oil with the promised quantity of 480,000 barrels per day, and providesthe Company with production raw materials such as naphtha, mixed xylene and straight-run fuel; ③ Interest-free purchase credit line: A credit line with a term of 20 years and an amount of USD 800 million, which can beincreased during the cooperation period, will be provided, which is conducive to improving the capitalutilization efficiency of ZPC and will have a positive impact on improving its profitability; ④ Flexiblecooperation in crude oil storage: the two sides will discuss friendly about the Company provides Saudi Aramcowith crude oil storage tanks and related facilities in Zhoushan, and Saudi Aramco maintains a crude oilinventory of not less than 1.5 million metric tons, which is helpful to ensure the crude oil supply of ZPC; ⑤Broad global sales channels: Relying on overseas sales channels of Saudi Aramco, the Company can furtherexpand the international market of its products and deepen strategic cooperation with overseas customers.Similarly, with the Company's rich resources accumulated over the years, Saudi Aramco can also quickly enterthe relevant international and domestic markets.
3. Refining and chemical sector
3.1. ZPC
With the goal of building a "private, green, international, trillion-level and flagship" base, ZPC's refiningand chemical integration project has been planned and unified at one time. At present, it has formed a world-class refining and chemical integration base with a processing capacity of 40 million tons/year for oil refining,
8.8 million tons/year for paraxylene and 4.2 million tons/year for ethylene, among which the single scale forhydrogenation, reforming and PX is the largest in the world. The project is designed to maximize the refiningand chemical integration, provide high-quality raw materials for downstream chemical devices, maximize theproduction of aromatic hydrocarbons (PX) and chemical products, and minimize the output of fuel. The yield offuel is lower than the industry average, with outstanding effect of reducing oil and increasing chemical.Meanwhile, through the optimal utilization of energy resources such as steam and water, and full use of the low-temperature waste heat of the device, it builds the world's largest thermal seawater desalination device to realize
energy saving and emission reduction. The refining and chemical integration rate of the project ranks first in theworld, far higher than the average level of petrochemical industry integration in China, and the scale andintegration degree of the base are at a leading position in the world.ZPC's crude oil has strong adaptability, and can be stored according to light, medium, heavy and acid,transported separately and refined separately. Combined with blending means, it can process 80%-90% of theglobal crude oil, which greatly enhances its adaptability to oil price fluctuations and offers obvious advantagescompared with other domestic leading enterprises. It has flexible product structure, and mature and reliabletechnology, and its main device scale and technical and economic indicators represent the most advanced levelworldwide. As a result of one-time overall planning, oil refining, aromatic hydrocarbon and ethylene fullydemonstrate the concept of "molecular oil refining" and make the best use of the material. All olefins are deeplyprocessed into chemicals with high import dependence, which makes them have stronger ability to cope withthe industry cycle.As the upstream industry of the polyester industry chain, ZPC has successfully established the last link ofthe whole process from a drop of oil to a piece of fiber for the Company, and formed the great advantage ofupstream and downstream integration of the polyester industry. ZPC is located in Zhoushan, a part of EastChina, which is the main consumer of terminal chemicals. The Yangtze River Delta contains about 70% ofChina's production capacity of plastics and chemical fibers, with obvious regional advantages. Located inZhejiang Free Trade Zone, ZPC enjoys various preferential policies in the free trade zone and has continuouslyobtained the export quota of refined oil; Yushan Island, where it is located, is an uninhabited island. Therefore,it is convenient for development and utilization, and will have little impact on the surrounding society and broaddevelopment space in the future; Being close to the consumer market, ZPC enjoys a prominent positionadvantage as a sea-land hub at the Ningbo-Zhoushan port with convenient access to bulk materials and products,and a significantly low transportation costs.
3.2. Zhongjin Petrochemical
Zhongjin Project, which was put into operation in August 2015, is an aromatic hydrocarbon combinedplant currently in service with leading single scale in the world. This project pioneered the process of makingaromatic hydrocarbon products with fuel oil (cheaper than naphtha) as raw material, and adopted a newtechnical route, which can solve the shortage of global naphtha supply, greatly save the procurement cost of rawmaterials, introduce the concept of "circular economy", and innovatively use the by-product hydrogen toprocess fuel oil into naphtha.The new disproportionation catalyst jointly developed by Zhongjin Petrochemical and Tongji Universityhas been successfully applied for the first time in ZPC 2# disproportionation unit (3.5 million tons/year). Thecatalyst has the excellent characteristics of "three highs", namely high space velocity, high yield and highconversion and utilization rate of heavy aromatic hydrocarbon, and has good operation stability, whosecomprehensive performance and technical indicators have reached the advanced level in the world at present,
realizing import substitution, which reflects the staged progress of the Company's scientific research andinnovation ability and level, and is of great significance for continuously improving the technical level ofproduction equipment, improving the conversion and utilization efficiency of raw materials, reducingconsumption and production costs, and realizing the aromatic hydrocarbon production from large to strong andachieving green efficiency.
3.3. Rongsheng New Materials (Zhoushan)
As the expansion area of Zhoushan Green Petrochemical Base, relying on ZPC and Ningbo ZhongjinPetrochemical, it extends the industrial chain downstream and develops fine chemicals and new chemicalmaterials. The company focuses on developing downstream products of the existing industrial chains of ZPCand Zhongjin, to achieve the value-added and efficiency increase in raw materials of Zhongjin and ZPC. Atpresent, the project has started construction and related work is progressing in an orderly manner.
3.4. Rongsheng New Materials (Taizhou)
The project company has been established, focusing on high-end polyolefins, special rubber andelastomers, engineering plastics, fine chemicals and special chemicals, and cutting-edge new materials to builda world-class new chemical material highland and a high-level open cooperation demonstration zone of RCEP.At present, the preliminary work is progressing in an orderly manner.
4. PTA sector
Since the establishment of the first private PTA production line in 2002, the Company has insisted onindependent innovation, successively developed and built the first domestic PTA process package andproduction equipment with independent intellectual property rights, and realized the first domestic applicationof core equipment such as large-scale oxidation reactors and high-speed pumps, which changed the long-termdependence of China's PTA industry on the introduction of complete sets of foreign patented technology, andpromoted a large number of domestic equipment manufacturers to achieve leap-forward development. At thesame time, we have continuously carried out technical transformation on existing equipment to improveproduction efficiency and product quality, and at the same time continuously optimized raw materialconsumption to ensure efficient use of resources. Meanwhile, the Company has steadily promoted the launch ofnew production capacity, on the one hand, to meet the growing market demand, and on the other hand, tostabilize the Company's leading position in the polyester industry.
5. Polyester sector
With the general policy of "safety and environmental protection, quality improvement, cost reduction andbenefits increase", the Company focuses on strengthening pandemic prevention and control, implementinghidden danger treatment, boosting process optimization and promoting lean production management.Yongsheng Technology's 250,000-ton functional polyester film expansion project has been successfully put intoproduction, and the company's annual polyester film production capacity has reached 430,000 tons, ranking thetop four in China. The Company's PTA production enterprises make full use of the advantages of the
Company's complete industrial chain integration to continuously tap the potential and increase benefits toproduce polyester bottle chips. At present, its production capacity ranks first in China, with part of PTAproduction capacity consumed locally, which enhances the competitiveness of the enterprise and improve theeconomic benefits. The 500,000 tons of differentiated fiber project of Shengyuan Phase II, which mainlyproduces flame-retardant, functional and dye-free fiber products, is also in progress.
2. Income and cost
(1) The composition of operating revenue
Unit: RMB
| 2023 | 2022 | Year-on-year increase (decrease) | |||
| Amount | Proportion in operating income | Amount | Proportion in operating income | ||
| Total operating income | 325,111,614,268.09 | 100% | 289,094,841,612.76 | 100% | 12.46% |
| By industry | |||||
| Petrochemical industry | 296,851,027,280.87 | 91.31% | 268,236,787,548.52 | 92.79% | 10.67% |
| Polyester chemical fiber industry | 14,717,875,220.67 | 4.53% | 14,641,039,125.46 | 5.06% | 0.52% |
| Trade and others | 13,542,711,766.55 | 4.16% | 6,217,014,938.78 | 2.15% | 117.83% |
| By product | |||||
| Oil refining products | 121,884,564,630.35 | 37.49% | 103,841,990,910.56 | 35.92% | 17.38% |
| Chemical products | 121,776,659,403.66 | 37.46% | 113,898,786,080.29 | 39.40% | 6.92% |
| PTA | 53,189,803,246.86 | 16.36% | 50,496,010,557.67 | 17.47% | 5.33% |
| Polyester chemical fiber film | 14,717,875,220.67 | 4.53% | 14,641,039,125.46 | 5.06% | 0.52% |
| Trade and others | 13,542,711,766.55 | 4.16% | 6,217,014,938.78 | 2.15% | 117.83% |
| By region | |||||
| China | 276,231,426,885.63 | 84.97% | 239,055,001,192.12 | 82.69% | 15.55% |
| Overseas | 48,880,187,382.46 | 15.03% | 50,039,840,420.64 | 17.31% | -2.32% |
(2) Industry, product, region and sales mode accounting for more than 10% of the Company's operatingrevenue or operating profit?Applicable □Not applicable
Unit: RMB
| Operating revenue | Operating cost | Gross profit margin | Year-on-year increase (decrease) in operating revenue | Year-on-year increase (decrease) in operating cost | Year-on-year increase (decrease) in gross profit margin | |
| By industry | ||||||
| Petrochemical industry | 296,851,027,280.87 | 260,117,762,693.46 | 12.37% | 10.67% | 9.29% | 1.11% |
| Polyester chemical fiber industry | 14,717,875,220.67 | 14,245,686,777.56 | 3.21% | 0.52% | 0.54% | -0.02% |
| Trade and others | 13,542,711,766.55 | 13,395,436,226.28 | 1.09% | 117.83% | 136.53% | -7.82% |
| By product | ||||||
| Oil refining products | 121,884,564,630.35 | 97,185,773,925.13 | 20.26% | 17.38% | 14.36% | 2.10% |
| Chemical products | 121,776,659,403.66 | 109,402,218,957.65 | 10.16% | 6.92% | 7.18% | -0.22% |
| PTA | 53,189,803,246.86 | 53,529,769,810.68 | -0.64% | 5.33% | 5.06% | 0.26% |
| Polyester chemical fiber film | 14,717,875,220.67 | 14,245,686,777.56 | 3.21% | 0.52% | 0.54% | -0.02% |
| Trade and others | 13,542,711,766.55 | 13,395,436,226.28 | 1.09% | 117.83% | 136.53% | -7.82% |
| By region | ||||||
| China | 276,231,426,885.63 | 240,147,860,944.59 | 13.06% | 15.55% | 15.14% | 0.31% |
| Overseas | 48,880,187,382.46 | 47,611,024,752.71 | 2.60% | -2.32% | -3.36% | 1.05% |
If the statistical caliber of the Company’s main business data is adjusted in the reporting period, the Company’smain business data adjusted by the caliber at the end of the reporting period for the latest year
□Applicable ?Not applicable
Operating revenue or net profit generated from overseas operations accounted for more than 10% of theCompany's audited operating revenue or net profit in the most recent fiscal year
□Yes ?No
(3) Whether revenue from physical sales is higher than service revenue
?Yes □No
| Industry | Item | Unit | 2023 | 2022 | Year-on-year increase (decrease) |
| Petrochemical industry | Sales quantity | Ton | 49,168,141.42 | 41,122,601.07 | 19.56% |
| Production quantity | Ton | 55,993,404.94 | 48,231,016.23 | 16.09% | |
| Inventory | Ton | 1,116,062.63 | 1,535,781.69 | -27.33% | |
| Polyester chemical fiber industry | Sales quantity | Ton | 2,114,331.59 | 1,985,632.47 | 6.48% |
| Production quantity | Ton | 3,480,230.85 | 3,363,954.31 | 3.46% | |
| Inventory | Ton | 135,913.59 | 119,462.01 | 13.77% |
Description of reasons for relevant data increasing/decreasing by more than 30% year-on-year
□Applicable ?Not applicable
(4) Performance of major sales and procurement contracts signed by the company as of the currentreporting period
□Applicable ?Not applicable
(5) Composition of operating costs
Industry and product categories
Unit: RMB
| Industry | Item | 2023 | 2022 | Year-on-year increase (decrease) | ||
| Amount | Proportion in operating cost | Amount | Proportion in operating cost | |||
| Petrochemical industry | Raw materials | 239,198,623,632.96 | 91.96% | 219,310,111,251.40 | 92.14% | -0.18% |
| Petrochemical industry | Labor wage | 1,624,611,209.04 | 0.62% | 1,726,845,598.87 | 0.73% | -0.11% |
| Petrochemical industry | Depreciation | 9,904,752,215.65 | 3.81% | 8,207,898,392.30 | 3.45% | 0.36% |
| Petrochemical industry | Energy | 8,186,332,743.25 | 3.15% | 7,730,464,344.88 | 3.25% | -0.10% |
| Petrochemical industry | Others | 1,203,442,892.56 | 0.46% | 1,034,050,204.02 | 0.43% | 0.03% |
| Total | 260,117,762,693.46 | 100.00% | 238,009,369,791.46 | 100.00% | 0.00% | |
| Polyester chemical fiber industry | Raw materials | 12,827,143,217.21 | 90.04% | 12,756,545,578.83 | 90.03% | 0.01% |
| Polyester chemical fiber industry | Labor wage | 290,364,973.60 | 2.04% | 270,512,439.97 | 1.91% | 0.13% |
| Polyester chemical fiber industry | Depreciation | 213,161,372.30 | 1.50% | 199,686,441.04 | 1.41% | 0.09% |
| Polyester chemical fiber industry | Energy | 717,988,984.46 | 5.04% | 719,003,959.71 | 5.07% | -0.03% |
| Polyester chemical fiber industry | Others | 197,028,229.99 | 1.38% | 222,725,728.97 | 1.57% | -0.19% |
| Total | 14,245,686,777.56 | 100.00% | 14,168,474,148.53 | 100.00% | 0.00% | |
Unit: RMB
| Product categories | Item | 2023 | 2022 | Year-on-year increase (decrease) | ||
| Amount | Proportion in operating cost | Amount | Proportion in operating cost | |||
| Oil refining products | Raw materials | 88,386,630,452.32 | 90.95% | 77,785,713,249.72 | 91.53% | -0.58% |
| Oil refining products | Labor wage | 728,940,877.61 | 0.75% | 754,650,595.88 | 0.89% | -0.14% |
| Oil refining products | Depreciation | 4,204,103,221.85 | 4.33% | 3,310,628,382.72 | 3.90% | 0.43% |
| Oil refining products | Energy | 3,497,104,097.06 | 3.60% | 2,934,219,424.57 | 3.45% | 0.15% |
| Oil refining products | Others | 368,995,276.29 | 0.38% | 196,737,347.99 | 0.23% | 0.15% |
| Total | 97,185,773,925.13 | 100.00% | 84,981,949,000.88 | 100.00% | 0.00% | |
| Chemical products | Raw materials | 99,869,923,999.03 | 91.29% | 93,512,854,749.88 | 91.61% | -0.32% |
| Chemical products | Labor wage | 813,044,055.81 | 0.74% | 908,477,399.74 | 0.89% | -0.15% |
| Chemical products | Depreciation | 4,726,636,911.00 | 4.32% | 3,980,431,150.22 | 3.90% | 0.42% |
| Chemical products | Energy | 3,642,936,514.85 | 3.33% | 3,457,548,082.96 | 3.39% | -0.06% |
| Chemical products | Others | 349,677,476.96 | 0.32% | 218,777,199.39 | 0.21% | 0.11% |
| Total | 109,402,218,957.65 | 100.00% | 102,078,088,582.19 | 100.00% | 0.00% | |
| PTA | Raw materials | 50,942,069,181.61 | 95.17% | 48,011,543,251.81 | 94.23% | 0.94% |
| PTA | Labor wage | 82,626,275.62 | 0.15% | 63,717,603.24 | 0.13% | 0.02% |
| PTA | Depreciation | 974,012,082.80 | 1.82% | 916,838,859.36 | 1.80% | 0.02% |
| PTA | Energy | 1,046,292,131.34 | 1.95% | 1,338,696,837.36 | 2.63% | -0.68% |
| PTA | Others | 484,770,139.31 | 0.91% | 618,535,656.64 | 1.21% | -0.30% |
| Total | 53,529,769,810.68 | 100.00% | 50,949,332,208.40 | 100.00% | 0.00% | |
| Polyester chemical fiber film | Raw materials | 12,827,143,217.21 | 90.04% | 12,756,545,578.83 | 90.03% | 0.01% |
| Polyester chemical fiber film | Labor wage | 290,364,973.60 | 2.04% | 270,512,439.97 | 1.91% | 0.13% |
| Polyester chemical fiber film | Depreciation | 213,161,372.30 | 1.50% | 199,686,441.04 | 1.41% | 0.09% |
| Polyester chemical fiber film | Energy | 717,988,984.46 | 5.04% | 719,003,959.71 | 5.07% | -0.03% |
| Polyester chemical fiber film | Others | 197,028,229.99 | 1.38% | 222,725,728.97 | 1.57% | -0.19% |
| Total | 14,245,686,777.56 | 100.00% | 14,168,474,148.53 | 100.00% | 0.00% | |
Note
Raw material prices decreased year-on-year during the reporting period, and converted fixed assets resultedin increased depreciation.
(6) Whether the scope of consolidation has changed during the reporting period?Yes □No
| 1. Increase in combination scope | ||
| Company name | Acquisition method | Date of equity acquisition |
| Zhoushan ZPC Sales Co., Ltd. | Newly established | May 25, 2023 |
| Ningbo ZPC Sales Co., Ltd. | Newly established | December 29, 2023 |
| Zhejiang ZPC Power Generation Co., Ltd. | Newly established | May 23, 2023 |
| Rongsheng Energy (Zhoushan) Co., Ltd. | Newly established | November 27, 2023 |
| Zhejiang Rongshen New Materials Co., Ltd. | Newly established | June 13, 2023 |
| Zhejiang Shengcheng New Materials Co., Ltd. | Newly established | June 13, 2023 |
| Zhejiang Huiyu New Materials Co., Ltd. | Newly established | June 13, 2023 |
| 2. Decrease in combination scope | ||
| Company name | Acquisition method | Date of disposal |
| Zhoushan Yushan Petrochemical Engineering Co., Ltd. | Transfer | June 29, 2023 |
(7) Significant changes or adjustments to the Company's business, products or services during thereporting period
□Applicable ?Not applicable
(8) Major sales customers and major suppliers
Major sales customers
| Total sales amount of the top five customers (RMB) | 68,855,328,347.68 |
| Proportion of total sales amount of the top five customers in total annual sales | 21.18% |
| Proportion of related party sales in total annual sales among the top five customers | 2.79% |
Top 5 customers of the Company
| S/N | Customer | Sales amount (RMB) | Proportion in total annual sales |
| 1 | Customer 1 | 29,763,235,516.92 | 9.15% |
| 2 | Customer 2 | 11,168,837,606.58 | 3.44% |
| 3 | Customer 3 | 11,143,354,718.55 | 3.43% |
| 4 | Customer 4 | 9,086,733,020.38 | 2.79% |
| 5 | Customer 5 | 7,693,167,485.25 | 2.37% |
| Total | -- | 68,855,328,347.68 | 21.18% |
Other information of major customers
□Applicable ?Not applicable
Major suppliers
| Total purchase amount of the top five suppliers (RMB) | 145,201,004,044.39 |
| Proportion of total purchase amount of the top five suppliers in total annual purchase amount | 47.01% |
| Proportion of related party purchase amount in total annual purchase amount of the top five suppliers | 26.92% |
Top 5 suppliers of the Company
| S/N | Supplier | Purchase amount (RMB) | Proportion in total annual purchase amount |
| 1 | Supplier 1 | 67,886,291,621.12 | 21.98% |
| 2 | Supplier 2 | 40,217,422,035.74 | 13.02% |
| 3 | Supplier 3 | 15,251,114,785.47 | 4.94% |
| 4 | Supplier 4 | 13,921,099,328.30 | 4.51% |
| 5 | Supplier 5 | 7,925,076,273.76 | 2.56% |
| Total | -- | 145,201,004,044.39 | 47.01% |
Other information of major suppliers
□Applicable ?Not applicable
3. Expenses
Unit: RMB
| 2023 | 2022 | Year-on-year increase (decrease) | Description of major changes | |
| Selling expenses | 160,462,247.93 | 175,450,628.16 | -8.54% | |
| Administrative expenses | 908,998,018.22 | 815,233,609.10 | 11.50% | |
| Financial expenses | 8,202,127,726.14 | 6,030,509,548.75 | 36.01% | Mainly due to the increase in interest expenses of the Company in the current period |
| R&D expenses | 6,555,282,352.50 | 4,367,112,486.97 | 50.11% | Mainly due to the increase in the Company's R&D expenditure in the current period |
4. R&D investment
?Applicable □Not applicable
| Name of main R&D project | Project purpose | Project progress | Objectives to be achieved | Expected impact on the company's future development |
| Research on application of DMDS substitute (coking inhibitor) | (1) Analysis on coking mechanism of cracking furnace; (2) Comparative analysis on using new coking inhibitor and DMDS in cracking furnaces with different raw materials. | The project has been implemented | (1) The operation cycle of the liquid furnace reaches 90 days. (2) The operation cycle of the gas furnace reaches 60 days. | Reduce the cost of three agents of the plant and increase the enterprise benefit. |
| Development and application of intelligent APC advanced control system to improve PX yield and reduce energy consumption of aromatic hydrocarbon plant | APC can solve the problems of lag and strong coupling that can not be solved by conventional PID control, and the operation of the plant can be more stable and the fluctuation can be reduced through predictive control; It improves the management level of the plant, enhances the competitiveness of the enterprise, promotes the scientific and technological progress of the factory, and also creates remarkable economic and social benefits for the enterprise. | The project has been implemented | The standard deviation of main constraint variables is reduced by ≥30% The utilization rate of advanced controller is ≥95% The PX yield of the target product is increased (calculated by PX output) by ≥0.6% The unit energy consumption is reduced by ≥1% The manual operation times is reduced by ≥60% PID loop automatic control rate (with utilization conditions) ≥98% | The economic benefit of aromatic hydrocarbon plant is significantly improved, the labor intensity of operators is significantly reduced, the misoperation by personnel is greatly prevented, and the operation stability of the plant is improved. |
| Research on interconnection optimization of ultra-high pressure steam pipe network in 1# and 2# ethylene plants | (1) Add the interconnecting pipeline of the ultra-high pressure steam pipe network of 1# and 2# ethylene plants; (2) Stably operate the 1# and 2# ethylene plants after the interconnection of ultra-high pressure steam pipe network; (3) Reserve connector for high-end new materials. | The project has been implemented | Intercommunication and stable pressure is realized for ultra-high pressure steam pipe network of 1# and 2# ethylene plants. | Reduce the energy consumption of the device and reduce the operation cost. |
| Development of Waste Heat Recovery Technology for Super-large Chemical Process Furnace | By using forced ventilation, the intake air can be evenly distributed, and corrosion inhibitors can reduce the sulfur content in fuel gas, reduce environmental pollution, and improve the combustion efficiency of fuel gas. | Project completed | The exhaust gas temperature reaches 85±5℃, and the thermal efficiency of the heating furnace is ≥95%±0.5% | Save energy, reduce emissions and enhance the competitiveness of enterprises |
| Development and research on purification technology of polluted nitrogen | The integrated transformation and upgrading project needs to increase the amount of nitrogen, and nitrogen is required for the subsequent ammonia synthesis and other devices | Delayed | Nitrogen output: 300,000 Nm3/h; Purity 99.99%(V); Pressure 0.4Mpa | Increase waste nitrogen production by 300,000 Nm3/h |
| Research and application of waste heat recovery and utilization in ZPC | In order to balance the factory-wide steam system of ZPC during the peak summer, prevent the waste of low-quality steam, make good use of steam cascade, and promote the Company's energy saving and consumption reduction. | The project has been implemented | In summer, 504,000 T of low-pressure steam is recovered, saving standard coal by about 48,719 T. | Reduce coal consumption |
| Research on advanced control of ethylene glycol plant (3 sets) | (1) Set PID loop and determine advanced control scheme; (2) Establish multivariable control model through step test or historical data; (3) Use advanced control, reduce operation times, stabilize production, save energy and increase efficiency. | Ongoing | APC utilization rate ≥95%, which reduces the energy consumption of the plant and the unit consumption of ethylene. | Improve the automation and intelligence level of the plant, reduce the energy consumption of the plant and reduce the unit consumption of ethylene. |
| Research on purity improvement of TEG products in 1# ethylene glycol plant | (1) Determine the research scheme for improving the purity of TEG products; (2) Discuss the difficulties, details, feasibility and reliability in the implementation of the scheme according to the optimized research scheme; (3) Carry out data analysis and process research according to the research scheme of improving the purity of TEG products to obtain the best process operation control parameters and improve the purity of TEG products. | The project has been implemented | The purity of TEG products is ≥99.5%. | Improve the quality of TEG products and enhance the competitiveness of the enterprise. |
| Research and application on selection optimization of diluted steam flowmeter for 1# ethylene cracking furnace | Solve the problem of flow deviation caused by unbalanced pressure on positive and negative pressure sides due to valve block blockage of diluted steam flowmeter. | Ongoing | The equipment can run safely, stably, long, fully and properly, the maintenance time can be shortened by 20 hours/week, the interlocking utilization rate can be 100%, and the automatic control rate can be 100%. | Ensure the stable production of the plant. |
| Research on application of raffinate hydrogenation technology to improve the properties of ethylene raw materials and prolong the service life of ethylene cracking furnace | The olefin saturation unit of raffinate oil of 3# aromatic hydrocarbon extraction plant is upgraded to remove olefins from raffinate oil products of 3# and 4# aromatic hydrocarbon extraction plants in a centralized way, in order to meet the feed requirements of ethylene cracking unit and prolong the one-way operation cycle of ethylene cracking furnace. | The project has been implemented | Olefin content in hydrogenation products is ≤ 1% | After removing olefins from raffinate oil, the feed requirements of ethylene cracking unit can be met, and the one-way operation cycle of ethylene cracking furnace can be prolonged. When it is used as ethylene cracking material, it will affect the ethylene yield of ethylene cracking plant and shorten the one-way operation cycle of ethylene cracking furnace. |
| Research and optimization on complex thermal stress of high-temperature pipeline in regenerative system of large-scale reforming plant | After recalculating the outlet pipeline of the regenerative blower, perform re-piping, change the existing pipeline layout, to eliminate the pipeline stress, prolong the operation time of the regenerative blower, and finally achieve the goal of long-term stable operation of the regeneration unit | Ongoing | Realize the safe and stable production and continuous operation of the plant. | The continuous and stable operation of regeneration unit can make the quality of reformed oil products reach the standard, achieve higher aromatic hydrocarbon yield, and improve the Company's benefits. |
| Technical Development of C3-C6 Recovery from Fuel Gas in Aromatic Hydrocarbon Combination Unit | Recover C3-C6 components in the non-condensable gas. | Project completed | Realize the recovery and utilization of heavy components in the dry gas. | Improve the added value of the product and recover LPG. |
| Research on Optimization of 3# and 4# 3.5 million tons diesel hydrocracking units based on mechanism model | Establish the reaction mechanism model of 3#/4# diesel oil hydrocracking plant, and put forward the optimization guidance scheme to guide the production of the unit by using the mechanism model. | The project has been implemented | Improve the yield of heavy naphtha in diesel hydrocracking plant by ≥0.5%, and increase the aromatic hydrocarbon content of heavy naphtha by 1% | Under the background of variable diesel hydrogenation raw materials, optimize raw material matching, adjust process operation, improve the yield of heavy naphtha, increase the aromatic hydrocarbon content of heavy naphtha and increase the PX output |
| Research on product quality improvement of 1# acrylonitrile plant | (1) Analysis of the reasons why the oxazole content in acrylonitrile exceeds the standard; (2) Research on the application effect of new tray. | Ongoing | Oxazol in acrylonitrile is ≤30mg/kg. | Improve the quality of acrylonitrile products and enhance the competitiveness of the enterprise. |
| Laboratory research on industrialization of 1.2 million tons/year ABS plant | (1) Complete the development of complete process package of 1.2 million tons/year ABS plant; (2) Complete the design of the main body of the project and the construction of the main body of the plant; (3) Complete the commissioning and performance test of the plant. | Ongoing | ABS reaches 300,000 tons/year | Improve the Company's product output, increase the added value of products and increase market competitiveness. |
| Research on internal leakage of spiral plate | Solve the problem of internal leakage of spiral plate heat exchanger | Ongoing | The spiral plate heat exchanger has been running continuously for one year under harsh | Solve the industry problems, improve the |
| heat exchanger in slurry bed residue hydrotreating plant and its preventive measures | working conditions without internal leakage | influence of the enterprise, and at the same time, run the equipment for a long period, and save maintenance costs, which solves the bottleneck problem of the device operation, which is conducive to the long-term operation of the plant with high load. | ||
| Development of EP548R new product with high melting and impact copolymerization in 3# and 4# polypropylene plant | (1) Carry out benchmarking study of similar plants, feasibility technical demonstration of product development and production technical reserve; (2) Produce new products with qualified quality and up-to-standard performance; (3) Track the customer's usage and make corresponding solutions according to the problems occurred. | The project has been implemented | Develop high-melting impact copolymer EP548R with qualified product quality. | Reduce the production cost of the plant and increase the market competitiveness. |
| New product development of high gloss black ABS special materials | (1) Carry out benchmarking study of similar plants, feasibility technical demonstration of product development and production technical reserve; (2) Produce new products with qualified quality and up-to-standard performance; (3) Track the customer's usage and make corresponding solutions according to the problems occurred. | Ongoing | Develop high-gloss black ABS special materials with qualified product quality. | Improve the economic benefit of the plant and increase the market competitiveness. |
| Research on application of new denitration catalyst in cracking furnace | (1) Search for advanced catalysts at home and abroad, and select the catalyst that is more suitable for ZPC cracking furnaces. (2) Optimize the monitoring means of the supporting denitration system to ensure more accurate monitoring data. (3) Explore the technical characteristics of new catalysts and optimize the process operation. | Ongoing | Ammonia consumption is reduced by 10%. | Improve the environmental protection level of the enterprise and improve the corporate image. |
| Development of automatic control system for alkaline liquid of acid gas torch | The alkaline liquid system is upgraded from full manual operation to an automatic control system with DCS control and automatic start/stop, with the pressure, current, operation signal and abnormal trip signal of the pump (of the whole alkaline liquid system) connected to DCS, in order to reduce the manual operation time of external operators on site, improve the emergency treatment speed, enhance the automation level, and realize safer and more stable operation of the acid gas system when the plant needs to discharge acid gas abnormally. | Ongoing | Realize automatic control | Improve the level of automation. |
| Research and | Promote green energy and low-carbon emission reduction, reduce the | The project | 1. When burning with coal, the boiler | Research on adoption |
| application of clean energy technology for the first 670t/h ultra-high pressure pulverized coal boiler in China | total amount of coal used, research on adoption of new combustion technologies to replace existing coal, and improve the diversity of fuel use | has been implemented | efficiency is not less than 92.6%. 2. When burning with gas, the boiler efficiency is not less than 94%. 3. The Nox emission at the denitration outlet is not higher than 28 mg/Nm3. 4. 100% load can be switched freely when coal and gas burning are not stopped. | of new combustion technologies to replace existing coal, and improve the diversity of fuel use |
| Research on adaptability of preheater burner in 2#SAR plant | (1) Determine the optimization research scheme of the preheater burner; (2) According to the transformation research scheme, meet the requirements of laboratory research conditions, and carry out data analysis and process research; (3) Run the preheater safely and stably for a long period. | Ongoing | After the preheater burner is reformed, it can meet the fuel conditions such as methane, hydrogen and synthetic gas. | Improve the economic benefit of the plant and increase the market competitiveness. |
| Research and application of 30000 tons/day thermal desalination project for factory-wide waste heat utilization | In order to fully utilize and balance the heat of aromatic hot water in the plant, add a 30,000-ton/day thermal desalination plant. | The project has been implemented | 1. The designed unit water output is not less than 30,000 tons/day 2. TDS of produced water quality is ≤ 5mg/L 3. Load regulation 50%— 100% 4. The water production ratio is greater than 14 | Realize that full utilization of the abundant heat of aromatic hot water and produce qualified fresh water, |
| Research on improving the yield of heavy naphtha with 2# wax oil | 2# 4 million tons/year wax oil hydrocracking plant was started in January 2022. After continuous optimization of operation adjustment, the yield of heavy naphtha is increased to about 32%, and the designed yield is 23.99%. The performance of the existing catalyst has been developed and utilized to the limit, in order to increase the production of heavy naphtha, improve the yield of heavy naphtha and provide high-quality raw materials for downstream plants to further increase the production of PX. By selecting and replacing the catalyst with high selectivity and high heavy naphtha yield, research on a new method to improve the yield of heavy naphtha. | Ongoing | Replace the catalyst to evaluate the heavy naphtha yield, up-to-standard rate and product distribution under different conditions (proportion and type of secondary oil blended), and finally reach the heavy naphtha yield of more than 35%, and further improve the heavy naphtha yield by optimizing operation adjustment, with a target yield of 40%; (Secondary oil includes hydrogenated wax oil and slurry bed wax oil); | The higher the heavy naphtha yield, the higher the PX. |
| Research on corrosion applicability evaluation and anti-corrosion countermeasures of refinery plant | By evaluating the corrosion applicability of key anti-corrosion plants such as atmospheric and vacuum distillation and non-hydrogenation acid water stripping, identify the hidden parts of corrosion and the parts that need to be monitored, which can optimize the process anti-corrosion measures of the plant and the material selection of equipment pipelines in advance, and gradually put an end to equipment corrosion leakage accidents. | The project has been implemented | The corrosion leakage incidents of equipment and pipelines have been greatly reduced, and the corrosion of each plant is under dynamic control. | Reduce equipment corrosion and promote work safety |
| Research on application of domestic catalyst for 2#HDPE | (1) According to the formula table and the production experience of the plant, complete the catalyst trial scheme and organize the team to study and train; (2) According to the production schedule, the domestic catalyst is put | The project has been implemented | Realize the domestic substitution of catalyst. | Reduce the production cost of the plant and increase the market competitiveness. |
| into production to achieve the purpose of cost reduction and benefits increase. | ||||
| Research and implementation of classification management of flange sealing surface and leakage prevention strategy of high-risk flange in refining plant | According to the flange temperature, pressure, leakiness degree and the harmfulness of leaked medium, the sealing surface of flange is classified. For different levels of flanges, targeted management shall be carried out in daily patrol inspection, overhaul management, fastening methods and fastening responsible persons to ensure that no partial or total shutdown of the plant will occur due to leakage. | Ongoing | Solve the problem of preventing leakage of high-risk flanges on site, and ensure that the plant will not be shut down locally or completely due to leakage | Reduce the leakage of key parts of the plant and ensure the long-term operation of the plant. |
| Research and industrial application of new aromatic hydrocarbon disproportionation catalyst | Rongsheng Petrochemical cooperates with Tongji University in the research, development and industrialization of new efficient catalysts, optimization of new disproportionation catalysts, catalyst amplification and trial production, industrial side-line test and optimization of reaction process conditions, in order to obtain new toluene disproportionation and heavy aromatic transalkylation catalyst technology with China's intellectual property rights and leading level, and accelerate the application process of catalyst industrialization. | The project has been implemented | Complete catalyst research and development, step-by-step scale-up preparation, industrial trial production and industrial side-line test, and complete industrial application and performance assessment of the catalyst. | Own the new toluene disproportionation and heavy aromatic transalkylation catalyst technology with independent intellectual property rights and leading level and accelerate the process of industrial application of the catalyst. |
| Development of HP525J new products of 3# and 4# polypropylene film materials | (1) Carry out benchmarking study of similar plants, feasibility technical demonstration of product development and production technical reserve; (2) Produce new products with qualified quality and up-to-standard performance; (3) Track the customer's usage and make corresponding solutions according to the problems occurred. | The project has been implemented | Develop film material HP525J with qualified product quality. | Improve the economic benefit of the plant and increase the market competitiveness. |
| Development of hydrodesulfurization low gas fraction and high efficiency deamination technology | After desulfurization and liquid removal, the hydrocracked low-fraction gas is sent to the PSA plant for use as raw material. Because the low-fraction gas desulfurization tower uses amine liquid (MDEA) as the desulfurizer, the desulfurized low-fraction gas will enter the PSA plant through the foam breaker driven by high-speed airflow, and the trace ammonia in the amine liquid and low-fraction gas will react with the trace chlorine carried in reforming hydrogen to form ammonium salt crystals to block the adsorbent, which will affect the effective capacity and surface activity of the adsorbent. | Ongoing | S/N Item Indicators Test method 1 Detection tube method with NH4 ≤1 2 Detection tube method with water content ≤50 3 Detection tube method with chlorine content ≤1 | The relative velocity and shear force between gas and liquid are increased, and the effective phase boundary area and mass transfer coefficient are increased, so that the mass transfer efficiency is high, the equipment volume is small, and it simple structure in structure, |
| with no internal moving parts but wide application range, self-cleaning, and free of blockage and scaling. | ||||
| Research on corrosion of vacuum system in catalyst preparation unit | Determine the corrosion mechanism and influencing factors of pipeline equipment in vacuum-pumping system; According to the laboratory research, carry out data analysis and corrosion research, optimize the operation scheme of the system, and formulate control measures to prevent the vacuum-pumping system from corrosion leakage causing system shutdown. | The project has been implemented | Catalyst output is 4 kettles/day; Road equipment without abnormal leakage, running time of not less than 6 months; | Break through the bottleneck of long-term stable operation of catalyst preparation unit and realize self-sufficiency of catalyst in slurry bed residue hydrogenation plant |
| Research on compilation method of corrosion control manual for refining and chemical plant based on corrosion loop | (1) Division method of corrosion loop; (2) Classification method of corrosion risk. | The project has been implemented | Complete the preparation of corrosion control manuals for atmospheric and vacuum distillation, hydrocracking and catalytic cracking plants based on corrosion loops. The divided corrosion loops cover 100% of the main processes of the three plants, and the corrosion risk classification covers 100% of the corrosion loops, and the suggestions for process corrosion protection, equipment corrosion protection and corrosion monitoring and testing of each corrosion loop are determined. | Further improve the comprehensive technical level of the plant and stabilize the stable operation of the plant |
| Research on quick blind plate of coke blowing system in cracking furnace | (1) Quick-opening blind plate with safe self-locking function; (2) All gaskets need not be removed, and the structure and parts of the blind plate plant can be quickly self-locked to realize online replacement. | The project has been implemented | The coke blowing system uses a quick blind plate to realize the switching process. | Reduce maintenance times and improve automation level. |
| Research and application of oxygen-enriched combustion process in sulfur combined recovery plant | The sulfur recovery unit adopts oxygen-enriched combustion technology to realize the 8 sets of 1# and 2# combined 130,000 tons/year sulfur recovery units. Under the premise that the existing equipment is not greatly changed, the oxygen content of the inlet air is increased to 28%, and the gas flow rate of the unit is reduced, so that the capacity of a single sulfur unit can reach 160,000 tons/year, and the maximum operating flexibility can reach 110% | The project has been implemented | After adaptive transformation, the treatment load of the unit can be increased to 160,000 tons/year, the maximum operating flexibility can reach 110%, the total sulfur recovery rate of the unit is over 99.95%, and the product liquid sulfur quality meets the indicator requirements of national standard GB/T2449.2-2015 for excellent products, and meets the expected requirements | Further improve the processing capacity of the unit and improve the environmental protection level of the enterprise |
| Research and implementation of pulsed eddy-current testing technology for | Select the parts of the equipment with different corrosion mechanisms, and measure the thickness by pulsed eddy-current testing and fixed-point thickness measurement respectively, and compare and summarize the | The project has been implemented | The number of sudden equipment corrosion leaks in oil refining plants has been greatly reduced, and the corrosion of each plant 'is | Reduce equipment corrosion and promote work safety |
| thickness measurement applied to anticorrosion thickness measurement | application effects through equipment disassembly and inspection | under dynamic controlled management | ||
| Research on industrialization of 300,000 tons/year vinyl acetate plant | (1) Development of the process package of 300,000 tons/year vinyl acetate plant; (2) Engineering design and industrial plant construction; (3) Research on process production optimization. | Ongoing | The output of vinyl acetate reaches 300,000 tons/year | Enrich the Company's product categories, improve the added value of products and increase market competitiveness. |
| Development of Deep Desulfurization Technology for Light Hydrocarbon | To deeply desulfurize the dry gas and liquefied gas, reduce the temperature of the exhaust gas of the heating furnace and improve the thermal efficiency of the heating furnace. | Project completed | Total sulfur removal of purified dry gas to 5mg/m? | Save energy, reduce emissions and enhance the competitiveness of enterprises |
| Research on storage and external optimization of ethylene tar products in 1# ethylene plant | (1) Adjust the best ratio of steam and tar content in coke tank. (2) Optimize the external heat transfer medium and flexibly adjust the external temperature of tar. (3) After technical transformation, send tar to slurry bed as raw material. | Ongoing | Control the temperature of ethylene tar and increase it to the slurry bed process. | Improve the quality of ethylene tar products and increase economic benefits. |
| Temperature prediction, warning and intelligent control project of hydroupgrading reactor | Use the industrial big data system combining big data analysis, machine learning, process mechanism and manual experience, and adopt the mode of "prediction+warning+visual temperature field" to prevent the occurrence of temperature runaway in advance and ensure work safety and smooth operation of the plant | Ongoing | (1) Carry out real-time prediction of bed temperature and bed temperature rise of cracking reactor in hydrotreating unit, timely detect abnormal temperature rise and give warning, and improve the stability of bed temperature and bed temperature rise through intelligent control strategy; (2) Realize 3D display of the temperature field in the cracking reactor of the hydroupgrading plant, and improve the sensitivity of artificial reaction to temperature; (3) Realize the online real-time statistics of plant operation indicators and key production indicators, reduce the labor intensity of manual calculation and improve the sensitivity of labor to production conditions; | Improve the reliability of plant operation safety |
| Research on optimizing heat exchange process and improving heat exchange final temperature in 2# atmospheric and vacuum distillation unit | By optimizing and studying the heat exchange process of the device, increase the final temperature of the unit after heat exchange by more than 5°C | After the demonstration of the project scheme is completed, the research | After modification, the final temperature of the unit after heat exchange is increased by more than 5°C, and the load of the heating furnace is reduced by 5-6MW | None |
| is terminated. | ||||
| Application and development of film material 2426K in 1#LDPE plant | (1) Carry out benchmarking study of similar plants, feasibility technical demonstration of product development and production technical reserve; (2) Produce new products with qualified quality and up-to-standard performance; (3) Track the customer's usage and make corresponding solutions according to the problems occurred. | Ongoing | Develop the film material 2426K with qualified quality. | Improve the economic benefit of the plant and increase the market competitiveness. |
| Product development of cable material V6110M for 1#EVA plant | (1) Carry out benchmarking study of similar plants, feasibility technical demonstration of product development and production technical reserve; (2) Produce new products with qualified quality and up-to-standard performance; (3) Track the customer's usage and make corresponding solutions according to the problems occurred. | Ongoing | Develop cable material V6110M with qualified quality. | Improve the economic benefit of the plant and increase the market competitiveness. |
| Development and marketing of cis-polybutadiene rubber BR9000 new products | (1) Carry out benchmarking study of similar plants, feasibility technical demonstration of product development and production technical reserve; (2) Produce new products with qualified products and up-to-standard performance, and well ensure marketing; (3) Track the customer's usage and make corresponding solutions according to the problems occurred. | Ongoing | Develop cis-polybutadiene BR9000 with qualified product quality. | Improve the economic benefit of the plant and increase the market competitiveness. |
| Research on waste gas treatment of oily sewage system in 1# ethylene plant | (1) The output of oily sewage is ≤100t/h, and the COD out-of-standard frequency for oily sewage is ≤5 times/year; (2) The alarm frequency of the benzene alarm devices GT17111 and GT17112 around the oily sewage buffer pool shall be controlled at ≤10 times/week; (3) The delivery temperature of oily sewage is controlled ≤45°C. | The project has been implemented | Oily sewage is discharged up to the standard, with no odor on site. | Improve the environmental protection level of the enterprise and improve the corporate image. |
| Research on quality stability of 1#PC products and solutions | (1) Research on the causes of discharge fluctuation of loss-in-weight scale; (2) Research on the filling method of additives; (3) Application of the filling method of new additives. | Ongoing | Polycarbonate quality is stable. | Improve the added value of products and increase market competitiveness. |
| Development of metallocene film material HPR-1018MA in 2#FDPE plant | (1) Carry out benchmarking study of similar plants, feasibility technical demonstration of product development and production technical reserve; (2) Produce new products with qualified quality and up-to-standard performance; (3) Track the customer's usage and make corresponding solutions according to the problems occurred. | The project has been implemented | Develop metallocene film material HPR-1018MA with qualified quality. | Improve the economic benefit of the plant and increase the market competitiveness. |
| Projects under RMB 40 million (290 in total) |
R&D personnel of the Company
| 2023 | 2022 | Change | |
| Number of R&D personnel (counts) | 3,659 | 2,731 | 33.98% |
| Proportion of R&D personnel | 19.07% | 14.05% | 5.02% |
| Educational structure of R&D personnel | |||
| Bachelor's Degree | 1,770 | 1,377 | 28.54% |
| Master's Degree | 106 | 98 | 8.16% |
| Doctor's Degree | 6 | 5 | 20.00% |
| Bachelor or below degree | 1777 | 1251 | 42.05% |
| Composition of R&D personnel by ages | |||
| 30 years old and below | 477 | 313 | 52.40% |
| 30 to 40 years old | 2,197 | 1,656 | 32.67% |
| Above 40 years old | 985 | 762 | 29.27% |
R&D investment of the Company
| 2023 | 2022 | Change | |
| R&D investment (RMB) | 6,555,282,352.50 | 4,367,112,486.97 | 50.11% |
| Proportion of R&D investment in operating income | 2.02% | 1.51% | 0.51% |
| Capitalized amount of R&D investment (RMB) | 0.00 | 0.00 | 0.00% |
| Proportion of capitalized R&D investment in R&D investment | 0.00% | 0.00% | 0.00% |
Reasons for and effects of significant changes in the composition of the Company's R&D personnel
□Applicable ?Not applicable
Reasons for significant changes in the proportion of total R&D investment amount in operating revenue comparedwith the previous year
□Applicable ?Not applicable
Reasons for the great changes of R&D investment capitalization rate and description of its rationality
□Applicable ?Not applicable
5. Cash flow
Unit: RMB
| Item | 2023 | 2022 | Year-on-year increase (decrease) |
| Subtotal of cash inflows for operating activities | 443,339,037,616.94 | 366,502,609,500.41 | 20.96% |
| Subtotal of cash outflows from operating activities | 415,259,816,108.21 | 347,444,472,615.05 | 19.52% |
| Net cash flow from operating activities | 28,079,221,508.73 | 19,058,136,885.36 | 47.33% |
| Subtotal of cash inflows from investing activities | 3,750,853,990.57 | 4,751,717,442.06 | -21.06% |
| Subtotal of cash outflows from investing activities | 36,038,087,908.11 | 33,718,025,019.38 | 6.88% |
| Net cash flow from investment activities | -32,287,233,917.54 | -28,966,307,577.32 | -11.46% |
| Subtotal of cash inflows from financing activities | 159,295,018,590.84 | 110,301,656,209.13 | 44.42% |
| Subtotal of cash outflows from financing activities | 158,092,248,128.26 | 98,744,982,879.68 | 60.10% |
| Net cash flow from financing activities | 1,202,770,462.58 | 11,556,673,329.45 | -89.59% |
| Net increase in cash and cash equivalents | -3,972,424,706.25 | 1,120,442,159.10 | -454.54% |
Description of main influencing factors of significant year-on-year changes in relevant data?Applicable □Not applicable
1. Net cash flows from operating activities amounted to RMB 28,079 million for the year, representing anincrease of approximately RMB 9,021 million as compared to the previous year, which was mainly due to theincrease in net cash receipts from sales of the Company's products and procurement of raw materials during theperiod.
2. The net cash flows from the Company's financing activities amounted to RMB 1,203 million for the year, adecrease of approximately RMB 10,354 million compared with the previous year, which was mainly due to theCompany's higher cash payments on maturing notes during the period.Reasons for the significant difference between the net cash flow generated by the Company's operating activitiesand the annual net profit during the reporting period:
?Applicable □Not applicable
The reasons for the significant difference between the Company's cash flows from operating activities duringthe reporting period and the net profit for the year are described in the supplementary information to the statementof cash flows in the Company's annual auditor's report.
Ⅴ. Non-core Business Analysis
?Applicable □Not applicable
Unit: RMB
| Amount | Proportion in total profit | Cause description | Whether it is sustainable | |
| Investment income | 460,034,533.27 | 29.63% | Mainly investment income from joint ventures of the Company | No |
| Profit (loss) from fair value change | 155,886,267.94 | 10.04% | Mainly due to investments in futures | No |
| Asset impairment loss | -121,513,148.98 | -7.83% | Mainly due to provision for decline in value of inventories | No |
| Non-operating income | 2,956,271.70 | 0.19% | Mainly compensation income | No |
| Non-operating expenses | 10,662,129.76 | 0.69% | Mainly the loss of scrap of fixed assets and external donations | No |
| Income from asset disposal | 3,706,231.92 | 0.24% | Mainly the income from disposal of fixed assets | No |
| Other income | 2,589,241,344.18 | 166.77% | Mainly policy-based VAT deductions | No |
| Credit impairment loss | -105,271,556.51 | -6.78% | Mainly formed by the provision for bad debts of accounts receivable | No |
VI. Analysis of Assets and Liabilities
1. Significant changes in asset composition
Unit: RMB
| At the end of 2023 | At the beginning of 2023 | Increase (decrease) of proportion | |||
| Amount | Proportion in total assets | Amount | Proportion in total assets | ||
| Monetary fund | 13,070,255,466.02 | 3.49% | 18,238,774,380.21 | 5.03% | -1.54% |
| Accounts receivable | 4,737,733,703.66 | 1.26% | 7,128,011,047.03 | 1.97% | -0.71% |
| Contract assets | |||||
| Inventory | 61,733,657,342.07 | 16.46% | 60,689,909,793.94 | 16.74% | -0.28% |
| Investment real estate | 10,395,574.60 | 0.00% | 10,667,020.60 | 0.00% | 0.00% |
| Long-term equity investment | 9,183,711,444.96 | 2.45% | 8,733,329,806.35 | 2.41% | 0.04% |
| Fixed assets | 219,699,679,397.52 | 58.60% | 222,161,110,736.65 | 61.27% | -2.67% |
| Construction in progress | 41,820,671,070.59 | 11.15% | 26,135,157,629.45 | 7.21% | 3.94% |
| Right-of-use assets | 200,102,141.16 | 0.05% | 225,606,768.34 | 0.06% | -0.01% |
| Short term loan | 44,810,936,767.94 | 11.95% | 26,369,552,400.50 | 7.27% | 4.68% |
| Contract liabilities | 4,421,732,432.83 | 1.18% | 3,734,262,391.81 | 1.03% | 0.15% |
| Long-term loan | 125,179,583,821.18 | 33.39% | 130,962,386,969.29 | 36.12% | -2.73% |
| Lease liabilities | 193,002,312.38 | 0.05% | 213,400,396.45 | 0.06% | -0.01% |
| Non-current liabilities due within one year | 30,286,684,174.81 | 8.08% | 20,461,387,778.93 | 5.64% | 2.44% |
Overseas assets account for a relatively high proportion
□Applicable ?Not applicable
2. Assets and liabilities measured at fair value
?Applicable □Not applicable
Unit: RMB
| Item | Amount at the beginning of the period | Profit and loss from changes in fair value for the period | Accumulated fair value changes recognized in equity | Impairment accrued in the current period | Purchase amount in the current period | Sales amount in the current period | Other changes | Amount at the end of the period |
| Financial assets | ||||||||
| 1. Financial assets held for trading (excluding derivative financial assets) | 188,283,362.49 | 310,087,429.45 | ||||||
| Total above | 188,283,362.49 | 310,087,429.45 | ||||||
| Financial liabilities | 588,769,711.55 | 623,298,741.33 |
Whether there were significant changes in the measurement attributes of the Company’s major assets during thereporting period
□Yes ?No
3. Restrictions on rights of assets at the end of the reporting period
| Item | Carrying value at the end of 2023 (yuan) | Reasons for restrictions |
| Monetary fund | 1,583,400,368.50 | Issue letters of credit, bills, letters of guarantee, borrowings and other deposits |
| Accounts receivable financing | 263,131.23 | Issue bill pledge |
| Fixed assets | 226,875,011,143.49 | Bank loan mortgage, letter of credit mortgage |
| Construction in progress | 29,889,674,426.59 | Bank loan mortgage, letter of credit mortgage |
| Intangible assets | 5,608,715,198.07 | Bank loan mortgage, letter of credit mortgage |
| Total | 263,957,064,267.88 |
VII. Analysis of Investment
1. Overall
?Applicable □Not applicable
| Investment amount in the reporting period (RMB) | Investment amount in the same period of last year (RMB) | Variations |
| 9,183,711,444.96 | 8,733,329,806.35 | 5.16% |
2. Significant equity investments acquired during the reporting period
□Applicable ?Not applicable
3. Major ongoing non-equity investments during the reporting period
□Applicable ?Not applicable
4. Investment in financial assets
(1) Securities investment
□Applicable ?Not applicable
There was no investment in securities during the reporting period.
(2) Investment in derivatives
□Applicable ?Not applicable
The Company had no derivatives investment during the reporting period.
5. Use of the raised funds
□Applicable ?Not applicable
The Company had no use of the raised funds during the reporting period.VIII. Sales of Major Assets and Equities
1. Sales of major assets
□Applicable ?Not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equities
□Applicable ?Not applicable
IX. Analysis of Main Holding and Joint-stock Companies?Applicable □Not applicableMain subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit
Unit：RMB 10,000
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| ZPC | Subsidiary | 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. | 5,580,000 | 29,806,707.14 | 9,346,079.33 | 26,019,958.18 | 164,359.46 | 136,685.48 |
| Shengyuan Chemical Fiber | Subsidiary | Production and sales of polyester chips and polyester filaments | 200,000 | 672,925.72 | 217,168.49 | 393,767.43 | 8,674.03 | 10,375.46 |
| Zhongjin Petrochemical | Subsidiary | Production and sales of chemical products and petroleum products | 600,000 | 2,532,663.34 | 687,052.85 | 2,165,763.10 | 5,357.94 | 3,857.37 |
| Yisheng Investment | Subsidiary | Project investment, domestic trade, import and export of goods | 201,800 | 1,621,638.48 | 770,014.26 | 3,008,139.14 | 396.19 | 5,756.78 |
| Yisheng Dahua | Subsidiary | Production and sales of PTA and polyester bottle chips | 245,645 | 1,457,182.57 | 605,765.85 | 3,008,139.03 | -18,268.15 | -12,895.37 |
| Yisheng New Materials | Subsidiary | Production and sales of PTA | 300,000 | 1,193,989.45 | 229,199.39 | 3,438,987.61 | -78,430.39 | -56,744.88 |
| Zhejiang Yisheng | Joint stock company | Production and sales of PTA and PIA | USD 514,447,100 | 1,963,632.89 | 897,894.33 | 2,259,138.29 | 4,569.14 | 2,781.26 |
| Hainan Yisheng | Joint stock company | Production and sales of PTA and polyester bottle chips | 458,000 | 1,688,635.22 | 678,236.39 | 1,799,579.10 | 40,631.14 | 36,436.78 |
Acquisition and disposal of subsidiaries during the reporting period
□Applicable ?Not applicable
Description of major holding companies and joint-stock companies
(1) Zhejiang Petroleum & Chemical Co., Ltd.
Zhejiang Petroleum & Chemical Co., Ltd. (ZPC) is the implementing body of the Company’s 40 milliontons/year refining and chemical integration project. Its business scope includes general business items such asproduction, sales, storage and transportation of petroleum products, import and export trade of crude oil, sales ofpetrochemical raw and auxiliary materials and equipment and their parts and components. With Li Shuirong as itslegal representative, ZPC, a holding subsidiary of the Company, owns a registered capital of RMB 55.8 billion. Bythe end of 2023, the company had total assets of RMB 298,067.07 million and net assets of RMB 93,460.79million; In 2023, the company achieved an operating revenue of RMB 260,199.58 million and a net profit ofRMB 1,366.85 million.
(2) Zhejiang Shengyuan Chemical Fiber Co., Ltd.
Zhejiang Shengyuan Chemical Fiber Co., Ltd. is the implementing body of the Company’s multi-functionalfibre technical transformation project. Its business scope covers the manufacturing and processing of polyesterand spandex (only for preparation) and the distribution of light textile raw materials and products. With LiShuirong as its legal representative, Shengyuan Chemical Fiber, a wholly-owned subsidiary of the Company,owns a registered capital of RMB 2,000,000,000. By the end of 2023, the company had total assets of RMB6,729.26 million and net assets of RMB 2,171.68 million; In 2023, the company achieved an operating revenue ofRMB 3,937.67 million and a net profit of RMB 103.75 million.
(3) Ningbo Zhongjin Petrochemical Co., Ltd.
The business scope of Ningbo Zhongjin Petrochemical Co., Ltd. includes the storage of chemical products;wholesale and retail of chemical products and petroleum products (except hazardous chemicals). With LiShuirong as its legal representative, Zhongjin Petrochemical, a wholly-owned subsidiary of the Company, owns aregistered capital of RMB 6,000,000,000. By the end of 2023, the company had total assets of RMB 25,326.63million and net assets of RMB 6,870.53 million; In 2023, the company achieved an operating revenue of RMB21,657.63 million and a net profit of RMB 38.57 million.
(4) Dalian Yisheng Investment Co., Ltd.
Dalian Yisheng Investment Co., Ltd. is mainly engaged in industrial investment. With Li Shuirong as its legalrepresentative, Yisheng Investment owns registered capital of RMB 2,018 million. The Company holds 70% of itsequity. By the end of 2023, the company had total assets of RMB 16,216.38 million and net assets of RMB7,700.14 million; In 2023, the company achieved an operating revenue of RMB 30,081.39 million and a net profitof RMB 57.57 million.
(5) Yisheng Dahua Petrochemical Co., Ltd.
Yisheng Dahua Petrochemical Co., Ltd. is mainly engaged in the production and sales of PTA. With LiShuirong as its legal representative, Yisheng Dahua Petrochemical owns a registered capital of RMB 2,456.45million. As of the end of 2023, the company had total assets of RMB14,571.83 million and net assets ofRMB6,057.66 million; in 2023, the company realized operating income of RMB30,081.39 million and net profit
of RMB-128.95 million.
(6) Zhejiang Yisheng New Materials Co., Ltd.
Zhejiang Yisheng New Materials Co., Ltd. is mainly engaged in the production and sales of PTA. The legalrepresentative is Xu Baoyue, the registered capital is RMB 3 billion, and Ningbo Zhongjin Petrochemical Co., Ltd.holds 51% of its equity. By the end of 2023, the company had total assets of RMB 11,939.89 million and netassets of RMB 2,291.99 million; In 2023, the company achieved an operating revenue of RMB 34,389.88 millionand a net profit of RMB -567.45 million.
(7) Zhejiang Yisheng Petrochemical Co., Ltd.
Zhejiang Yisheng Petrochemical Co., Ltd. is mainly engaged in production and sales of PTA and PIA.Zhejiang Yisheng Petrochemical Co., Ltd. is mainly engaged in PTA production and sales. With Fang Xianshui asits legal representative, Yisheng Petrochemical owns a registered capital of USD 514,447,100. The Companyholds 30% of its equity. By the end of 2023, the company had total assets of RMB 19,636.33 million and netassets of RMB 8,978.94 million; In 2023, the company achieved an operating revenue of RMB 22,591.38 millionand a net profit of RMB 27.81 million.
(8) Hainan Yisheng Petrochemical Co., Ltd.
Hainan Yisheng Petrochemical Co., Ltd. is a joint-stock subsidiary of Yisheng Investment, the Company’sholding subsidiary. The Company’s main business includes the production and sales of PTA and polyester bottlechips, and import and export business. With Fang Xianshui as its legal representative, Yisheng Petrochemicalowns a registered capital of RMB 4,580 million. Yisheng Investment holds 50% of its equity. By the end of 2023,the company had total assets of RMB 16,886.35 million and net assets of RMB 6,782.36 million; In 2023, thecompany achieved an operating revenue of RMB 17,995.79 million and a net profit of RMB 364.37 million.X. Structured Entities Controlled by the Company
□Applicable ?Not applicable
XI. Prospect for the Company's Future Development
In 2024, the market demand has shown signs of recovery and will further improve in the future, and thenational, provincial and municipal levels have introduced relevant policies to support the development ofenterprises and stabilize the economy, and we believe that opportunities abound for the development of theCompany. Under the leadership of the Board of Directors and the management, we will implement the relevantwork in accordance with the established guidelines to ensure the stable release of benefits from existing projectsand the smooth implementation of new projects.
(I) Business plan
1. Reviewing the situation to draw up a road map for strategic development
The year 2024 is the 75th anniversary of the founding of China, and also a key year for the 14th Five-YearPlan to set targets and tasks. It is a year full of challenges, hopes and opportunities for innovation. From thecurrent development situation of the industry, it can be seen that the current economy of China’s petroleum andchemical industry is in a critical period of stabilization and recovery, shift in driving forces and high-qualitydevelopment to build a solid foundation.
The central economic work conference clearly states that it is imperative to deepen the supply-sidestructural reform and focus on expanding effective demand synergy. Therefore, we should pay close attention tothe latest developments of the external situation, keep a close eye on the latest policies issued by the state andlocal governments and changes in market conditions, draw a road map and issue a mission statement, flexiblyadjust production and marketing strategies under the state of normal business operations, and do a good job oftimely risk prevention and control so as to seize the trends and opportunities with excellent strategic vision andwin the initiative in market competition.
2. Grasping both the internal and the external to ensure sound operation and development
Rongsheng’s integrated industrial chain layout has a strong foundation, and the layout in the field of high-end petrochemicals and new materials has been comprehensively carried out. Under the constraints of “dual-control” and “dual-carbon”, accelerating the development of high-end petrochemicals and new chemicalmaterials is a general trend. We will always focus on the core task of enterprise development, coordinateproduction, operation and project construction, do a good job in internal mechanism control and external riskprevention and control, and actively seize the development opportunities to help the Company achieve high-quality development.
At the beginning of the new year, we released Announcement on the Signing of a Memorandum ofUnderstanding with Saudi Arabian Oil Company and Announcement on Investment and Construction of JintangNew Materials Project. The implementation of these major projects requires us to take into account both theinternal and the external, and conduct scientific planning. While accelerating the advancement of investmentprojects, we must always pay attention to the prevention and control of risk so as to have a deep understandingof the situation and take appropriate actions when necessary.
3. Using innovation to drive scientific research and development
Innovation is the primary driving force of development. At present, a new round of scientific andtechnological revolution and industrial transformations are developing rapidly and new technologies, newproducts and new forms of business are constantly emerging. We have to realize that the future of industrialscience and technology innovation is like a running race that waits for no one, which requires us to be ahead ofthe others and seize the first opportunity, as the first mover is often easier to gain a competitive edge.
We will go further to promote the deep integration of industry, academia, research and application,accelerate the R&D and innovation of high-end new materials, focus on the “stranglehold” and sophisticatedareas, speed up the adjustment of industrial structure, tackle the problems in green petrochemical technology,promote the construction of digital and intelligent innovation and development system, form new productiveforces and build the world’s leading green petrochemical technology innovation platform.
4. Taking concrete actions to cultivate the fertile soil for talents to grow
Talents are the most important resources. Since enterprise development depends on talents, we need to findtalents, use talents and allocate talents with a higher standpoint and wider vision. The Company always sticks to
safeguarding the rights and interests of employees, providing a healthy working environment for employees,and opening up the channels for the growth of talents, so that every employee can become the backbone of theCompany’s high-quality development.On the new journey, we will continue to promote the cultivation of various types of talents, firmly take theroad of independent training of talents, continue to improve the mechanism, build a good platform and cultivatethe fertile soil for the growth of talents, so that the roots of talents can be more developed and one crop afteranother of talents can thrive, turning a steady stream of talents into the surging momentum for inexhaustibledevelopment.(II) Risks the Company may Face
1. Risk from fluctuation of raw material products
As a member of the crude oil industrial chain, the main cost of the Company’s products is the cost ofupstream raw materials. Therefore, the fluctuation of crude oil prices will result in the price fluctuation ofproducts in the industry chain. The Company’s main products are aromatic hydrocarbons, chemicals and oilproducts, which are closely related to the national economy and people's livelihood. The industry developmentis highly correlated with the prosperity of the national economy, and macroeconomic changes will have acertain adverse impact on our performance. The Company’s purchasing and marketing team and productionteam has rich experience in procurement, trade, hedging, and logistics. With the help of the marketingdepartment, we will focus on market changes, adhere to the combination of strategic procurement andpreferential procurement, and effectively reduce procurement costs. We also strengthen sales management andarrange flexible long-term and short-term contracts to reduce the adverse impact of raw material fluctuations.
2. Foreign currency exchange rate fluctuation risk
In the future, the market-oriented reform of the exchange rate will become one of the important factorsaffecting investors’ asset allocation. If the USD further strengthens in the interest rate increase cycle, it maylead to greater pressure on the depreciation of RMB. As the Company pursues international growth, the sharpfluctuation of the currency exchange rate of foreign exchange settlement, which is dominated by the USD, willjeopardize the its daily operations. While controlling financial risks, the Company will continue to optimize thefinancing structure and the financing scale of USD funds, control the cost within a reasonable range, and thenreduce the adverse impact of the exchange rate.
3. Risk of product overcapacity
With the expansion of domestic refining and chemical integration capacity and the promotion of thestrategy of "reducing oil and increasing chemicals" in recent years, the basic chemical raw materials and generalchemical products in the downstream of refining and chemical industry are characterized by certainhomogenization. With the support of the Company's complete and refined industrial chain platform, theCompany will still be at the left end of the industry cost curve in the future, thus occupying a favorable positionin the market competition. On the other hand, many products in the new materials project planned by the
Company have less domestic production capacity or even rely entirely on imports, which will bring excessreturns to the Company.
4. Risk of project capital expenditure
Petrochemical industry is a capital-intensive industry with large investment scale and long constructionperiod. Continued large-scale capital investment will likely increase the level of asset-liability ratio and triggercash flow risks. Besides, in the context of overcapacity in the industry and sluggish downstream demand, thereturn on invested capital may also be less than expected. After the second phase of ZPC was put intoproduction, although the Company planned several new materials projects intensively, it has strictly controlledthe pace of investment and construction, adjusted the project content in strict accordance with the marketsituation, maintained a reasonable asset-liability ratio, and actively negotiated cooperation with foreignpetrochemical giants such as Saudi Aramco to create a more competitive refining and chemical integrationplatform.
Ⅻ. Reception of Research, Communication, Interview and Other Activities during theReporting Period
?Applicable □Not applicable
| Date | Reception place | Ways of reception | Object type | Reception object | Main contents discussed and materials provided | Basic information index of research |
| May 5, 2023 | "Investor Relations Interactive Platform" of p5w.net | Online communication on network platform | Individual | Investor | See more at: http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1216760380&announcementTime=2023-05-06%2015:35 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1216760380&announcementTime=2023-05-06%2015:35 |
| September 06, 2023 | "Investor Relations Interactive Platform" of p5w.net | Online communication on network platform | Individual | Investor | See more at: http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1217802780&announcementTime=2023-09-07%2013:37 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1217802780&announcementTime=2023-09-07%2013:37 |
| October 25, 2023 | "Investor Relations Interactive Platform" of p5w.net | Online communication on network platform | Individual | Investor | See more at: http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1218155240&announcementTime=2023-10-26%2009:07 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1218155240&announcementTime=2023-10-26%2009:07 |
XIII. Implementation of the Action Plan of "Double Improvement of Quality and Return”
Whether the Company has disclosed the action plan of "double improvement of quality and return".?Yes □No
In order to implement the guiding ideology of "activating the capital market and boosting investors'confidence" put forward at the meeting of the Political Bureau of the CPC Central Committee on July 24, 2023and "improving the quality and investment value of listed companies, taking more powerful and effectivemeasures, focusing on stabilizing the market and confidence" put forward at the executive meeting of the StateCouncil on January 22, 2024, and earnestly protect the interests of all investors, the Company has formulatedthe action plan of "double improvement of quality and return" based on its confidence in the future developmentprospects of the Company and its recognition of the stock value, and disclosed it on February 29, 2024. Detailsare as follows:
1. Insist on serving the country through industry and lead the development of the industry
Rongsheng Petrochemical is one of the globally leading petrochemical enterprises, ranking 7th in the list ofthe most valuable brands in global chemical industry in 2023 and 16th in the top 50 global chemical enterprisesin 2023. The Company is firmly putting into practice the “vertical and horizontal strategy”. It has establishedseven production bases in Bohai Economic Rim, Yangtze River Delta Economic Circle and Hainan Belt andRoad Economic Circle, forming five industrial chains of polyester, engineering plastics, new energy, high-endpolyolefin and special rubber. It is one of the important producers of polyester, new energy materials,engineering plastics and high value-added polyolefin in Asia, with the largest production capacity of chemicalssuch as PX and PTA in the world. Since listing, the Company's business has developed rapidly, and itsoperating income has increased from RMB 15,795,678,900 in 2010 to RMB 325,111,614,300 in 2023, with acompound growth rate of 26.19%.
On the basis of the existing complete industrial chain, the Company actively arranges products related tonew energy and new materials, and the proportion of related products continues to increase. At the same time,the Company actively carried out the global layout. In 2023, the Company introduced Saudi Aramco as astrategic investor. At present, Saudi Aramco holds about 10% of the Company's stake through its fully-ownedaffiliate. At the beginning of 2024, the Company signed a Memorandum of Understanding with Saudi Aramco,and the two sides are discussing further cooperation matters to promote the realization of their strategic goals.
2. Attach importance to R&D investment and drive growth with innovation
The Company keeps up with the forefront of international science and technology, and constantly launchesnew technologies and products in clean energy, high-end materials and green development. The Companyupholds a technological research and development pattern driven by both independent innovation andcooperation. It has established many first-class research and development platforms, including a high-techresearch and development center, a workstation for academicians and experts, an enterprise technology center,and a post-doctoral science and research workstation. Moreover, it engages in active technology exchanges anddiscussions and promotes industry-university-research collaboration to pool resources from universities, thecommunity, and the Company. With all sectors of society, it jointly promotes its research capability and
technological advancement and together create an innovative development system that is open, healthy, andcooperative, where everyone can benefit.
3. Attach importance to shareholders' returns and share development achievementsWhile paying attention to its own development, the Company also attaches great importance toshareholders' return. In order to improve and enhance the Company's shareholder return mechanism andincrease the transparency and operability of profit distribution policies, the Company has formulated theShareholders' Return Plan for the Next Three Years since its listing, according to the Company Law of People'sRepublic of China, the Supervision Guide for Listed Companies No.3-Cash Dividends of Listed Companies andother laws, regulations and the Articles of Association, and has continuously updated them. Up to now, a totalof 13 cash dividends have been paid, with a total cash dividend of nearly RMB 7.5 billion. In the future, theCompany will continue to coordinate the dynamic balance of corporate development, performance growth andshareholder return according to its development stage, and realize a "long-term, stable and sustainable"shareholder value return mechanism.
4. Carry out repurchase by increasing holdings to boost market confidence
Based on the confidence in the Company's future development prospects and the recognition of its long-term value, the Company and its controlling shareholder actively carry out share repurchase and increase plansin order to protect the interests of investors, especially small and medium-sized investors, enhance investors'confidence, promote the reasonable return of the Company's stock price to its long-term intrinsic value, andpromote the Company's stable and sustainable development.Since the Company repurchased shares for the first time on March 29, 2022, it has implemented three-phase share repurchase schemes. As of March 31, 2024, the Company have repurchased 552,380,458 shares inthe three repurchase phases, accounting for 5.4553% of the Company's total share capital, with a total turnoverof RMB 6,980,413,936.02 (excluding transaction costs). The details are as follows.
| Repurchase | Repurchase period | Number of shares repurchased (shares) | Amount to be repurchased (RMB 100 million) | Repurchased amount (RMB) |
| Phase I | 2022.3.29-2022.8.2 | 136,082,746 | 10-20 | 1,998,203,937.31 |
| Phase II | 2022.8.18-2023.7.27 | 147,862,706 | 10-20 | 1,989,986,431.34 |
| Phase III | 2023.8.28-2024.3.31 | 268,435,006 | 15-30 | 2,992,223,567.37 |
| Total | 552,380,458 | - | 6,980,413,936.02 | |
Rongsheng Holding, the controlling shareholder, intends to implement the shareholding increase planwithin six months from January 19, 2024. The specific start time for implementation is January 22, 2024, andthe increase amount is not less than RMB 1 billion and not more than RMB 2 billion.
At present, the Phase I and Phase II share repurchases have been completed, and the Phase III sharerepurchase plan and the controlling shareholder's share increase plan are still in the process of implementation.For the specific implementation progress, please pay attention to the Company's relevant announcements, and
the Company will fulfill its information disclosure obligations in a timely manner according to relevantregulations.
5. Standardize corporate governance and deliver corporate value
The Company strictly abides by the requirements of relevant laws and regulations, constantly improves thecorporate governance structure, establishes and enhances the internal control system, regulates the company'soperation, strives to achieve full coverage of the system, and promotes a more mature construction of theinternal control system. The Company has established a corporate governance structure of "three meetings andone management", namely the General Meeting of Shareholders, Board of Directors, Board of Supervisors andSenior Management, which has independent business and operational autonomy and operates independently inbusiness, assets, personnel, institutions and finance.The Company strictly abides by the principle of "truthfulness, accuracy, completeness, timeliness andfairness", constantly improves the effectiveness and transparency of information disclosure, and continuouslypresents investors with information on the Company's operations at multiple levels, from multiple angles and inall directions. At the same time, the Company continuously expands the breadth and depth of investorcommunication, and improves the open, fair, transparent and multi-dimensional investor communicationchannels, so that investors can understand the Company's core values more clearly and comprehensively andenhance their confidence in the Company.In the future, the Company will continue to focus on its main business, adhere to the investor-orientedprinciple, continue to practice the "double improvement of quality and return” policy, realize the sustainableand healthy development of the Company, and strive to make positive contributions to stabilizing the marketand confidence through standardized corporate governance and positive investor returns.
Section IV Corporate GovernanceI. Basic Information of the Company’s Corporate GovernanceDuring the reporting period, the Company followed the Company Law of the People’s Republic of China,the Securities Law of the People’s Republic of China, the Guidelines on Corporate Governance for ListedCompanies, the Rules Governing the Listing of Shares on Shenzhen Stock Exchange, the Guidelines ofShenzhen Stock Exchange on Standardized Operation of Listed Companies and other applicable laws andregulations issued by China Securities Regulatory Commission. The Company constantly improved internalcorporate governance, established a sound internal control system, and regulated operational processes in linewith the above-mentioned legal requirements. The status quo of our corporate governance met the requirementsof normative documents concerning listed companies governance.
1. The shareholders and the General Meeting of Shareholders
During the reporting period, the Company standardized the convening and voting procedures of theGeneral Meeting of Shareholders in strict accordance with the Company Law of the People’s Republic of China,the Rules for the Shareholders’ Meetings of Listed Companies, the Articles of Association, the Rules ofProcedure of the General Meeting of Shareholders, and other applicable regulations and requirements so as toensure that all shareholders, especially small and medium-sized shareholders, enjoy equal status and fullyexercise their rights. Additionally, according to the Articles of Association and other applicable laws andregulations, the matters to be voted at the General Meeting of Shareholders would be first reviewed by thecorresponding authority and then submitted to the General Meeting for deliberation. There was no approvalbeyond authority or implementation before deliberation. During the reporting period, the Company held fiveGeneral Meeting of Shareholders, which was convened by the Board of Directors, and invited lawyers toguarantee the legitimacy and normalization of the General Meeting of Shareholders.
2. The relationship between the controlling shareholders and the listed company
The Company and its controlling shareholders are completely separated when it comes to business,personnel, assets, institutions and finances. The Company has full capability of independent operations. Thecontrolling shareholders strictly regulate their own behavior, fulfill corresponding obligations, and do notinterfere, directly or indirectly, in the Company’s decision-making and business activities without the presenceof the Board of Directors. The Company has independent business and operational autonomy, so it isindependent of the controlling shareholders in terms of business, assets, personnel, organization and finances.The Board of Directors, Board of Supervisors and internal organizations can operate independently. There is nohorizontal competition between the Company and the controlling shareholders, the Company does not provideundisclosed information to the controlling shareholders, and the controlling shareholders do not appropriate theCompany’s funds. Moreover, the Company provides no guarantee for its controlling shareholders.
3. The Board of Directors and its members
The Company elects directors in strict accordance with the selection and appointment proceduresstipulated in the Company Law of the People's Republic of China and the Articles of Association. During thereporting period, the Company's Board of Directors met ten times, and the convening and voting procedures ofthe Board Meetings satisfied the requirements of the Rules Governing the Listing of Shares on Shenzhen StockExchange, the Articles of Association and the Rules of Procedure of the Board of Directors. All the directorscan work diligently and dutifully in accordance with the Rules of Procedure of the Board of Directors, attendthe board meetings, participate in the training sessions, and learn relevant laws and regulations. Independentdirectors independently perform their duties, safeguard the overall interests of the Company, protect thelegitimate rights and interests of minority shareholders from harm, and offer independent opinions on importantand major matters. The special committees under the Board of Directors perform their respective duties andgive full play to their professional functions, greatly improving the efficiency of the Board.
4. The Board of Supervisors and its members
The Company elects supervisors in strict accordance with the Company Law of the People's Republic ofChina and the Articles of Association. During the reporting period, the Company's Board of Supervisors metnine times, and the convening and voting procedures of the Board of Supervisors Meetings complied with theRules Governing the Listing of Shares on Shenzhen Stock Exchange, the Articles of Association and the Rulesof Procedure of the Board of Supervisors. The Company’s supervisors can earnestly perform their duties andassume responsibility for the shareholders in accordance with the relevant requirements. They also supervise theCompany’s finances, related-party transactions, internal controls and the performance of directors and seniorexecutives, provide their opinions, and safeguard the legitimate rights and interests of the Company and itsshareholders.
5. Performance evaluation standards and incentive mechanisms
The Company established a set of fair and transparent performance evaluation standards and incentivemechanisms and has constantly improved it. The appointment process of senior executives is open andtransparent and complies with the applicable laws and regulations.
6. Stakeholders
The Company respects and protects the legitimate rights and interests of its shareholders, customers,employees, suppliers, partners and other stakeholders, strengthens communication and cooperation with them,and strives to balance their interests while maximizing the profits, so as to sustain the healthy development ofthe Company.
7. Information disclosure management
During the reporting period, the Company strengthened information disclosure management and fulfilledthe obligation of information disclosure in accordance with the spirit of documents issued by Shenzhen StockExchange and other applicable laws and regulations. The Company disclosed its information on the Securities
Times, Shanghai Securities Journal, and CNINFO (http://www.cninfo.com.cn) to enable investors to access ourinformation in a fair manner. The Company also established smooth communication channels such as theInvestor Hotline and Investor Relations Interactive Platform of Shenzhen Stock Exchange to better exchangeopinions.
During the reporting period, the reality of corporate governance met the requirements of normativedocuments concerning listed company governance issued by the China Securities Regulatory Commission.Whether there are any material differences between the actual state of corporate governance and the laws,administrative regulations, provisions on company governance issued by the China Securities RegulatoryCommission.
□Yes ?No
There are no material differences between the actual state of corporate governance and the laws, administrativeregulations, provisions on company governance issued by the China Securities Regulatory Commission.
II. Corporate Independence from the Controlling Shareholders and Actual Controller inTerms of Assets, Personnel, Finances, Organization, and Business
The Company is completely separated from its controlling shareholders and other subsidiaries or affiliatesin terms of business, personnel, assets, organization, and finances. It has the full capability of conductingbusiness and maintaining operations independently.
1. Business independence
The Company has independent business operation systems, such as an independent procurement system,production system, technology R&D system and marketing system, and can operate independently whiledirectly satisfying market demands. The Company has no competitive relationship with its major shareholdersand other related parties under their control, nor does it rely on any of them in business operations.
2. Personnel independence
The Company manages an independent staff. The Company is separated from its shareholders and othersubsidiaries or affiliates under their control when it comes to salary payment and welfare expenditures, and hasestablished an independent and complete human resources management system. The Company's Chairman,General Manager, Deputy General Manager, Chief Financial Officer, Secretary of the Board of Directors andother senior executives are appointed in accordance with the applicable laws, regulations, normative documentsand the Articles of Association. They work full-time in the Company and receive remuneration, and so do thefinancial personnel.
3. Assets independence
The ownership of major operating assets such as land, buildings, production equipment and office facilitiesof the Company and its holding subsidiaries is clear and complete. The Company does not provide guarantee forshareholders and companies controlled by them for the sake of assets, benefits or reputation. The Company has
complete control over all assets, and the funds are not misappropriated, meaning the interests of the Companyand its shareholders are not compromised.
4. Organizational independence
The Company has established effective bodies such as the General Meeting of Shareholders, the Board ofDirectors and the Board of Supervisors, and developed corresponding rules of procedure. All institutions makeindependent decisions within their respective authority in accordance with the Company Law of the People’sRepublic of China and the Articles of Association. According to the real needs of business development, theCompany established an independent and complete organizational framework in line with the actual situationand conducted business activities independently. The Company is completely separated from the shareholderorganizations and their related parties in terms of business operations, and there is no mixed operation.
5. Financial independence
The Company has set up a complete and independent financial department, assigned independent financialpersonnel, and established an independent accounting system. The financial department can make financialdecisions independently, and the Company has a standardized financial accounting system and a financialmanagement system designed for subsidiaries. The Company opens an independent bank account. As anindependent taxpayer, the Company declares taxes independently and fulfills the obligation of tax payment.III. Horizontal Competition
□Applicable ?Not applicable
IV. The Convening of the Annual General Meeting and Interim Shareholders’ MeetingDuring the Reporting Period
1. General meeting of shareholders during the reporting period
| Session | Type | Investor attendance ratio | Convening date | Disclosure date | Meeting resolution |
| The First Extraordinary General Meeting in 2023 | Extraordinary General Meeting | 77.78% | April 13, 2023 | April 14, 2023 | For details, please refer to CNINFO (http://www.cninfo.com.cn) Announcement on Resolutions of the First Extraordinary General Meeting of Shareholders in 2023 (Announcement No.: 2023-018) |
| 2022 Annual General Meeting | Annual General Meeting | 79.78% | May 16, 2023 | May 17, 2023 | For details, please refer to CNINFO (http://www.cninfo.com.cn) Announcement on Resolutions of Annual General Meeting of Shareholders in 2022 (Announcement No.: 2023-038) |
| The Second Extraordinary General Meeting in 2023 | Extraordinary General Meeting | 63.01% | August 17, 2023 | August 18, 2023 | For details, please refer to CNINFO (http://www.cninfo.com.cn) Announcement on Resolutions of the Second Extraordinary General Meeting of Shareholders in 2023 (Announcement No.: 2023-051) |
| The Third Extraordinary General Meeting in 2023 | Extraordinary General Meeting | 63.06% | September 11, 2023 | September 12, 2023 | For details, please refer to CNINFO (http://www.cninfo.com.cn) Announcement on Resolutions of the Third Extraordinary General Meeting of Shareholders in 2023 (Announcement No.: 2023-072) |
| The Fourth Extraordinary General Meeting in 2023 | Extraordinary General Meeting | 63.53% | November 13, 2023 | November 14, 2023 | For details, please refer to CNINFO (http://www.cninfo.com.cn) Announcement on Resolutions of the Fourth Extraordinary General Meeting of Shareholders in 2023 (Announcement No.: 2023-085) |
2. Shareholders of preferred shares with voting rights recovered request to convene an extraordinarygeneral meeting of shareholders
□Applicable ?Not applicable
V. Basic Information of the Directors, Supervisors and Senior Management
1. Profile
| Name | Gender | Age | Title | Status | Start Date of Tenure | End Date of Tenure | Number of Shares Held at the Beginning (shares) | Number of Shares Held at the End (shares) |
| Li Shuirong | Male | 68 | Chairman | Current | April 08, 2021 | 643,275,000 | 643,275,000 | |
| Alharbi, Mitib Awadh M | Male | 47 | Director | Current | November 13, 2023 | |||
| Li Yongqing | Male | 60 | Director | Current | April 08, 2021 | 96,525,000 | 96,525,000 | |
| Li Caie | Female | 61 | Director | Current | April 08, 2021 | |||
| Yu Fengdi | Female | 56 | Director | Current | April 08, 2021 | |||
| Xiang Jiongjiong | Male | 41 | Director and General Manager | Current | May 26, 2023 | |||
| Yan Jianmiao | Male | 59 | Director | Current | May 10, 2019 | |||
| Shao Yiping | Female | 61 | Director | Current | May 20, 2021 | |||
| Zheng Xiaodong | Male | 46 | Director | Current | May 10, 2019 | |||
| Quan Weiying | Female | 46 | Secretary of the Board of Directors | Current | April 29, 2021 | |||
| Sun Guoming | Male | 43 | Supervisor | Current | May 10, 2019 | |||
| Li Guoqing | Male | 54 | Supervisor | Current | April 08, 2021 | 96,525,000 | 96,525,000 | |
| Xu Yongming | Male | 53 | Supervisor | Current | April 08, 2021 | |||
| Zhou Xianhe | Male | 49 | Vice General Manager | Current | October 25, 2022 | |||
| Wang Yafang | Female | 45 | CFO | Current | May 10, 2019 | |||
| Total | -- | -- | -- | -- | -- | -- | 836,325,000 | 836,325,000 |
Whether there was any resignation of directors and supervisors and dismissal of senior management in thereporting period
?Yes □NoDue to job adjustment, Ms. Quan Weiying no longer serves as a director of the Company.Changes in directors and senior management of the Company?Applicable □Not applicable
| Name | Title | Type | Date | Reason |
| Quan Weiying | Director | Demission | November 13, 2023 | Job adjustment. |
| Alharbi, Mitib Awadh M | Director | Elected | November 13, 2023 | Elected by the board, deliberated and approved by the general meeting of shareholders |
2. Holding of post
The background, main work experience, and current main duties of directors, supervisors and officers in theCompany
1. Main work experience of current directors:
Mr. Li Shuirong: Senior Economist, university degree, Chinese nationality; He formerly served asChairman and General Manager of Rongsheng Chemical Fiber Group Co., Ltd. and Chairman and President ofZhejiang Rongsheng Holding Group Co., Ltd.; He is also President of the China Association of Township andVillage Enterprises, the Invited Vice President of China National Textile and Apparel Council, Vice Presidentof China Chemical Fibers Association, and Senior Consultant of Zhejiang Province Zheshang EconomicDevelopment Center; He is currently the Chairman of Rongsheng Petrochemical Co., Ltd. and the Chairman ofZhejiang Rongsheng Holding Group Co., Ltd.Mr. Xiang Jiongjiong: Master’s degree; currently the director and general manager of RongshengPetrochemical Co., Ltd., vice chairman of Zhejiang Rongsheng Holding Group Co., Ltd. and director ofZhejiang Petroleum and Chemical Co., Ltd.; also the vice chairman of Zheshang General Association ofEnterprises; selected in Forbes “2021 China’s Best CEO List”.Mr. Li Yongqing: college degree, Chinese nationality; He formerly served as Deputy Manager and GeneralManager Assistant of the Supply Engineering Department of Rongsheng Chemical Fiber Group Co., Ltd; He iscurrently the Vice Chairman of Zhejiang Rongsheng Holding Group Co., Ltd. and a director of RongshengPetrochemical Co., Ltd.
Mr. Mitib: A Saudi Arabian National, graduated from King Fahd University of Petroleum and Mining inSaudi Arabia, currently serves as VP of Fuels Business Management at Saudi Arabian Oil Company in Dhahran,Saudi Arabia. Prior to that he served as President of Aramco Asia in China. Also, he served in various perviousleading roles such as the head of Aramco Asia Korea Limited, the director of Saudi Aramco’s domestic jointventure department at Saudi Aramco Headquarter. Additionally, he worked in leadership positions at MotivaEnterprises LLC, both at the Port Arthur Refinery and in Motiva’s U.S. headquarters in Houston, Texas. Also,he started his career at Ras Tanura Refinery in Saudi Arabia and completed two years of internship program atUOP U.S.
Ms. Li Cai'e: Senior Economist, Bachelor's degree, Chinese nationality; She was awarded many honorarytitles such as model worker of Xiaoshan District in 2008, and advanced accountant of Xiaoshan District inHangzhou; She once served as Deputy General Manager of Rongsheng Chemical Fiber Group Co., Ltd. andChief Financial Officer of Rongsheng Petrochemical Co., Ltd.; She is currently the Vice President of ZhejiangRongsheng Holding Group Co., Ltd., a director of Rongsheng Petrochemical Co., Ltd., a director of ZhejiangPetroleum & Chemical Co., Ltd., and a director of Ningbo United Group Co., Ltd.Ms. Yu Fengdi: College degree; She was awarded the title of Model Worker of Hangzhou City; She hasserved as a technician of the Biotechnology Department of Shaoxing County No. 1 Polyester Factory, the headof the Biotechnology Department of Shaoxing No. 1 Chemical Fiber Factory, the manager and the assistant tothe general manager of the False Twisting Department of Rongsheng Chemical Fiber Group Co., Ltd.; She iscurrently the Vice President of Zhejiang Rongsheng Holding Group Co., Ltd. and a director of RongshengPetrochemical Co., Ltd.
Mr. Yan Jianmiao: Chinese nationality, without permanent residency abroad, Ph.D. in Economics. He hasserved as the former deputy director of the Department of International Trade of the School of Finance andEconomics, Hangzhou University and the director of the Department of International Economics of the Schoolof Economics, Zhejiang University. He is currently a professor at the School of Economics of ZhejiangUniversity and the executive director of Zhejiang International Economy & Trade Institute. He is currently anindependent director of Rongsheng Petrochemical Co., Ltd., Zhejiang Garden Biotechnology Co., Ltd. andZhejiang Jinggong Technology Co., Ltd.
Ms. Shao Yiping: Master degree, professor of accounting, master's supervisor, main research interests:
Accounting theory and accounting standards, accounting professional judgment and earnings management,asset impairment accounting, etc., focusing on many fields such as corporate litigation risk and accountingrobustness; She served as Secretary of Party General Branch and Vice President of the School of Accounting,Zhejiang University of Finance and Economics, Director of the Personnel Department of Zhejiang University ofFinance and Economics, Member of the CPC Committee of Zhejiang University of Finance and Economics,Secretary of the CPC Committee of Dongfang College, Member of the CPC Committee and Chairman of theLabor Union of Zhejiang University of Finance and Economics, Member of Zhejiang Accounting SystemAdvisory Expert Committee, etc. She is currently a professor of accounting at the Zhejiang University ofFinance and Economics, and an executive director of the Hangzhou Institute of Certified Public Accountants.She is currently an independent director of Rongsheng Petrochemical Co. UE Furniture Co., Ltd. and ZhongtianService Co., Ltd.
Mr. Zheng Xiaodong: Chinese nationality, without permanent residency abroad, Master of Maritime Law.He is currently the managing partner and executive director of Beijing JT&N Law Firm, an arbitrator of theShanghai International Arbitration Center, and an independent director of Rongsheng Petrochemical Co., Ltd.and Beijing Foyou Pharmaceutical Co., Ltd. He served as a member of the Listing Committee of the Shanghai
Stock Exchange, deputy head of the Enterprise Compliance Special Working Group of All China LawyersAssociation (including enterprise compliance and ESG), and deputy director of the Professional Committee ofSecurities Law of Beijing Lawyers Association. Mr. Zheng Xiaodong has extensive experience in corporatecompliance, ESG, investment and financing, and corporate listing, and has presided over the ESG reporting ofJT&N.
2. Main work experience of current supervisors:
Mr. Sun Guoming: Member of CPC, Bachelor's degree, corporate human resource manager He onceserved as an inspector, assistant manager and deputy manager of the Inspection Department of ZhejiangRongsheng Holding Group Co., Ltd.; Manager of the Warehouse Management Department and GeneralManagement Department of Ningbo Zhongjin Petrochemical Co., Ltd. He is currently the Deputy Secretary ofthe Discipline Inspection Commission, the Deputy Director of the Inspection Department of ZhejiangRongsheng Holding Group Co., Ltd. and the Supervisor of Rongsheng Petrochemical Co., Ltd.
Mr. Li Guoqing: College degree; He used to be assistant manager of the Sales Department of RongshengChemical Fiber Group Co., Ltd.; He is currently the Assistant to Vice President of Zhejiang Rongsheng HoldingGroup Co., Ltd. and the Supervisor of Rongsheng Petrochemical Co., Ltd.
Mr. Xu Yongming: Bachelor's degree, senior economist, successively served as director of the SpinningFactory of Zhejiang Yuandong Chemical Fiber Group, manager of the spinning department and assistant togeneral manager of Rongsheng Chemical Fiber Group Co., Ltd.; He is currently the supervisor of RongshengPetrochemical Co., Ltd., the general manager of Zhejiang Yongsheng Technology Co., Ltd. and also the vicechairman of BOPET Specialized Committee of China Plastic Processing Industry Association.
3. Main work experience of current senior management personnel:
Mr. Xiang Jiongjiong: Master’s degree; currently the director and general manager of RongshengPetrochemical Co., Ltd., vice chairman of Zhejiang Rongsheng Holding Group Co., Ltd. and director ofZhejiang Petroleum and Chemical Co., Ltd.; also the vice chairman of Zheshang General Association ofEnterprises; selected in Forbes “2021 China’s Best CEO List”.
Mr. Zhou Xianhe: male, senior engineer, bachelor's degree, Chinese nationality; He successively served ashead of the Finished Product Inspection Department of Zhejiang Rongsheng Chemical Fiber Co., Ltd., salesmanager of Zhejiang Rongsheng Holdings Group Co., Ltd., sales manager of Hangzhou Rongsheng ChemicalFiber Sales Co., Ltd., deputy general manager of Zhejiang Shengyuan Chemical Fiber Co., Ltd. and part-timeprofessor of Zhejiang Sci-Tech University; He is also a member of the National Chemical Fiber StandardizationTechnical Committee; He is currently the General Manager of Zhejiang Shengyuan Chemical Fiber Co., Ltd.
Ms. Quan Weiying: Bachelor's degree, once worked in Investment Department and Finance Department ofRongsheng Petrochemical Co., Ltd., and won the titles of "Excellent Secretary of the Board of Directors" and"Top Secretary of the Board of Directors"; She is currently secretary of the Board of Directors of RongshengPetrochemical Co., Ltd.
Ms. Wang Yafang: Bachelor's degree, senior accountant, certified public accountant; She used to be deputymanager, manager and deputy financial director of the Financial Management Department of ZhejiangRongsheng Holding Group Co., Ltd.; She is currently the Chief Financial Officer of Rongsheng PetrochemicalCo., Ltd.Holding of Post at Shareholder Organization?Applicable □Not applicable
| Name | Shareholder Organization | Title | Start Date of Tenure | End Date of Tenure | Whether receiving remuneration and allowance in shareholder organization |
| Li Shuirong | Rongsheng Holding | Chairman | June 20, 2007 | No | |
| Li Yongqing | Rongsheng Holding | Director | June 20, 2007 | Yes | |
| Sun Guoming | Rongsheng Holding | Supervisor | May 10, 2019 | Yes | |
| Li Guoqing | Rongsheng Holding | Director | June 20, 2007 | Yes | |
| Yu Fengdi | Rongsheng Holding | Vice President | May 09, 2017 | Yes | |
| Li Caie | Rongsheng Holding | Vice President | May 11, 2019 | Yes | |
| Additional Information | None | ||||
Office holding in other companies?Applicable □Not applicable
| Name | Name of other units | Positions held in other units | Start Date of Tenure | End Date of Tenure | Whether receiving remuneration and allowance in other organizations |
| Li Shuirong | Zhejiang Petroleum & Chemical Co., Ltd. | Chairman | June 18, 2015 | No | |
| Li Shuirong | Ningbo Zhongjin Petrochemical Co., Ltd. | Chairman | April 21, 2009 | No | |
| Li Shuirong | Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. | Director | August 01, 2004 | No | |
| Li Shuirong | Yisheng Dahua Petrochemical Co., Ltd. | Chairman | December 19, 2005 | No | |
| Li Shuirong | Dalian Yisheng Investment Co., Ltd. | Chairman | December 19, 2005 | No | |
| Li Shuirong | Zhejiang Shengyuan Chemical Fiber Co., Ltd. | Chairman | June 15, 2010 | No | |
| Li Shuirong | Zhejiang Derong chemicals Co. Ltd. | Director | October 2018 | No | |
| Li Shuirong | Rongsheng New Material (Taizhou) Co., Ltd. | Manager, Chairman | May 2022 | No | |
| Li Shuirong | Hangzhou Binjiang Shengyuan Real Estate Development Co., Ltd. | Supervisor | To now | No | |
| Li Shuirong | Zhejiang Yisheng Petrochemical Co., Ltd. | Director | December 12, 2002 | No | |
| Li Shuirong | Rongsheng (Shanxi) Carbon-based New Material Co., Ltd. | Chairman and General Manager | August 2021 | No | |
| Li Shuirong | Rongsheng (Shanxi) Coal Industry Co., Ltd. | Chairman and General Manager | August 2021 | No | |
| Li Shuirong | Zhejiang Dongjiang Green Petrochemical Technology Innovation Center Co., Ltd. | Vice chairman | April 2023 | No | |
| Li Shuirong | Ningbo Niluoshan New Energy Co., Ltd. | General manager, executive director | July 2018 | No | |
| Li Shuirong | Ningbo United Group Co., Ltd. | Chairman, director | June 18, 2010 | No | |
| Li Shuirong | Hangzhou Kaiyuan Century Real Estate Co., Ltd. | Director | To now | No | |
| Li Shuirong | Hangzhou Yuanshenghui Enterprise Management Co., Ltd. | Director | November 2023 | No | |
| Li Shuirong | Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. | Chairman | October 2018 | No | |
| Li Shuirong | Ningbo Hengyi Trading Co., Ltd. | Director | To now | No | |
| Li Shuirong | Shanghai Huanqiu Engineering Co., Ltd. | Director | January 2021 | No | |
| Li Shuirong | Zhejiang Shengcheng New Materials Co., Ltd. | Executive director | June 2023 | No |
| Li Shuirong | Zhejiang Rongshen New Materials Co., Ltd. | Executive director | June 2023 | No | |
| Li Shuirong | Zhejiang Huiyu New Materials Co., Ltd. | Executive director | June 2023 | No | |
| Li Shuirong | Ningbo Qingzhi Chemical Terminal Co., Ltd. | Chairman | To now | No | |
| Li Shuirong | Yibin Tianyuan Group Co.,Ltd. | Director | June 19, 2009 | November 24, 2023 | No |
| Alharbi, Mitib Awadh M | Saudi Arabian Oil Company | VP of Fuels Business Management | March 10, 2024 | Yes | |
| Alharbi, Mitib Awadh M | Aramco Asia Korea Limited | Representative director | September 29, 2020 | June 30, 2023 | Yes |
| Alharbi, Mitib Awadh M | Aramco Asia Korea Limited | Representative director | July 01, 2023 | No | |
| Alharbi, Mitib Awadh M | Aramco Far East (Beijing) Business Services Co., Ltd | President | July 01, 2023 | March 09, 2024 | Yes |
| Alharbi, Mitib Awadh M | Aramco Far East (Beijing) Business Services Co., Ltd | President | March 10, 2024 | March 31, 2024 | No |
| Li Yongqing | Ningbo Zhongjin Petrochemical Co., Ltd. | Director | April 21, 2009 | No | |
| Li Yongqing | Yisheng Dahua Petrochemical Co., Ltd. | Director | December 19, 2005 | No | |
| Li Yongqing | Dalian Yisheng Investment Co., Ltd. | Director | December 19, 2005 | No | |
| Li Yongqing | Zhejiang Shengyuan Chemical Fiber Co., Ltd. | Vice chairman | June 15, 2010 | No | |
| Li Yongqing | Zhejiang Yisheng Petrochemical Co., Ltd. | Director | December 12, 2002 | No | |
| Li Yongqing | Rongxiang Chemical Fiber Co., Ltd. | Director | To now | No | |
| Li Yongqing | Ningbo Hengyi Trading Co., Ltd. | Director | To now | No | |
| Xiang Jiongjiong | Zhejiang Petroleum & Chemical Co., Ltd. | Director | June 18, 2015 | No | |
| Xiang Jiongjiong | Zhejiang Provincial Petroleum Co., Ltd. | Director | September 16, 2017 | No | |
| Xiang Jiongjiong | Shanghai Lingang New Area Jingang Shengyuan Real Estate Co., Ltd. | Director | November 2021 | No | |
| Xiang Jiongjiong | Shanghai Lingang New Area Jingang Rongsheng Real Estate Co., Ltd. | Director | July 2023 | No | |
| Xiang Jiongjiong | Rongsheng (Zhoushan) New Materials Co., Ltd. | Chairman | January 2022 | No | |
| Xiang Jiongjiong | Rongsheng Energy Technology (Inner Mongolia) Co., Ltd. | Chairman | January 2024 | No | |
| Xiang Jiongjiong | Rongsheng Chemical (Shanghai) Co., Ltd. | Executive director | May 2021 | No | |
| Xiang Jiongjiong | Rongsheng New Material (Taizhou) Co., Ltd. | Director | December 2023 | No | |
| Xiang Jiongjiong | Dongzhan Shipping Co., Ltd. | Director | July 2018 | No | |
| Xiang Jiongjiong | Zhejiang International Oil and Gas Trading Center Co., Ltd. | Vice chairman | June 2020 | No |
| Xiang Jiongjiong | Rongsheng Energy Co., Ltd. | Executive director | April 2021 | No | |
| Xiang Jiongjiong | Rongsheng Coal Co., Ltd. | Executive director | June 21, 2018 | No | |
| Xiang Jiongjiong | Rongxiang Chemical Fiber Co., Ltd. | Chairman | To now | No | |
| Xiang Jiongjiong | Zhejiang Yongsheng Technology Co., Ltd. | Director | To now | No | |
| Xiang Jiongjiong | Zhejiang ZPC Sales Co., Ltd. | Executive director | May 2021 | No | |
| Xiang Jiongjiong | Rongsheng Energy (Zhoushan) Co., Ltd. | Executive director, manager | November 2023 | No | |
| Xiang Jiongjiong | Rongsheng International Trading (Hainan) Co., Ltd. | Executive director | August 2020 | No | |
| Xiang Jiongjiong | Rongsheng International Trading Co., Ltd. | Executive director | February 01, 2016 | No | |
| Xiang Jiongjiong | Zhoushan ZPC Sales Co., Ltd. | Executive director | May 2023 | No | |
| Xiang Jiongjiong | Zhoushan ZPC Sales Co., Ltd. | Executive director | To now | No | |
| Xiang Jiongjiong | Zhejiang Rongtong Chemical Fiber New Material Co., Ltd. | Executive director, general manager | To now | No | |
| Xiang Jiongjiong | Sanyuan Holding Group Hangzhou Thermal Power Co., Ltd. | Supervisor | To now | No | |
| Xiang Jiongjiong | Taizhou ZPC Sales Co., Ltd. | Executive director | February 2024 | No | |
| Xiang Jiongjiong | Ningbo ZPC Sales Co., Ltd. | Executive director | December 2023 | No | |
| Xiang Jiongjiong | Zhejiang Rongyi Chemical Fiber Co., Ltd. | Executive director, manager | March 2024 | No | |
| Li Caie | Zhejiang Petroleum & Chemical Co., Ltd. | Director | June 18, 2015 | No | |
| Li Caie | Ningbo Zhongjin Petrochemical Co., Ltd. | Director | April 21, 2009 | No | |
| Li Caie | Rongsheng New Material (Taizhou) Co., Ltd. | Director | December 2023 | No | |
| Li Caie | Ningbo United Group Co., Ltd. | Director | June 18, 2010 | No | |
| Li Caie | Zhejiang Rongxiang Thermal Power Co., Ltd. | Executive director, general manager | December 2019 | No | |
| Li Caie | Rongxiang Chemical Fiber Co., Ltd. | Vice chairman | To now | No | |
| Li Caie | Rongsheng Technology Co., Ltd. | Director | To now | No | |
| Li Caie | Dalian Yisheng Investment Co., Ltd. | Director | December 19, 2005 | No | |
| Li Caie | Yisheng Dahua Petrochemical Co., Ltd. | Director | December 19, 2005 | No | |
| Li Caie | Yibin Tianyuan Group Co.,Ltd. | Director | June 19, 2009 | November 24, 2023 | No |
| Yu Fengdi | Suzhou Shenghui Equipment Co., Ltd. | Director | December 2019 | No |
| Yan Jianmiao | Zhejiang University | Professor | September 01, 1998 | No | |
| Yan Jianmiao | Zhejiang Garden Biopharmaceutical Co.,Ltd. | Independent director | February 01, 2021 | Yes | |
| Yan Jianmiao | Zhejiang Jinggong Technology Co., Ltd. | Independent director | August 27, 2021 | Yes | |
| Yan Jianmiao | Jinda Holding Group Co., Ltd. | Independent non-executive director | To now | Yes | |
| Shao Yiping | Zhejiang University of Finance & Economics | Professor | July 01, 1988 | Yes | |
| Shao Yiping | Zhejiang Garden Biopharmaceutical Co.,Ltd. | Independent director | February, 2024 | Yes | |
| Shao Yiping | UE Furniture Co., Ltd. | Independent director | February, 2021 | Yes | |
| Shao Yiping | Zhongtian Services Co., Ltd. | Independent director | October 12, 2020 | Yes | |
| Zheng Xiaodong | Beijing JT&N Law Firm | Partner | December 01, 2009 | Yes | |
| Zheng Xiaodong | GigaDevice Semiconductor Inc. | Director | September 12, 2023 | Yes | |
| Zheng Xiaodong | Beijing Foyou Pharmaceutical Co., Ltd. | Independent director | June 14, 2019 | Yes | |
| Quan Weiying | Zhejiang Yisheng Petrochemical Co., Ltd. | Supervisor | To now | Yes | |
| Quan Weiying | Hong Kong Sheng Hui Co., Ltd. | Director | July 05, 2007 | No | |
| Sun Guoming | Rongsheng New Material (Taizhou) Co., Ltd. | Chairman of the Board of Supervisors, supervisor | December 2023 | No | |
| Sun Guoming | Zhejiang Rongxiang Thermal Power Co., Ltd. | Supervisor | December 2019 | No | |
| Sun Guoming | Zhejiang ZPC Sales Co., Ltd. | Supervisor | May 2021 | No | |
| Sun Guoming | Zhoushan ZPC Sales Co., Ltd. | Supervisor | To now | No | |
| Sun Guoming | Zhejiang Rongshen New Materials Co., Ltd. | Supervisor | June 2023 | No | |
| Sun Guoming | Zhejiang Huiyu New Materials Co., Ltd. | Supervisor | June 2023 | No | |
| Sun Guoming | Zhejiang Shengcheng New Materials Co., Ltd. | Supervisor | June 2023 | No | |
| Li Guoqing | Zhejiang Shengyuan Chemical Fiber Co., Ltd. | Supervisor | June 26, 2006 | No | |
| Li Guoqing | Rongxiang Chemical Fiber Co., Ltd. | Supervisor | To now | No | |
| Xu Yongming | Zhejiang Yongsheng Technology Co., Ltd. | Chairman, General Manager, director | To now | No | |
| Xu Yongming | Zhejiang Zhuosheng Industry & Trade Co., Ltd. | Executive director, general manager | November 2021 | No |
| Zhou Xianhe | Zhejiang Shengyuan Chemical Fiber Co., Ltd. | Manager | June 2017 | No | |
| Zhou Xianhe | Zhejiang Rongshen New Materials Co., Ltd. | Manager | June 2023 | No | |
| Zhou Xianhe | Zhejiang Huiyu New Materials Co., Ltd. | Manager | June 2023 | No | |
| Zhou Xianhe | Zhejiang Shengcheng New Materials Co., Ltd. | Manager | June 2023 | No | |
| Wang Yafang | Rongsheng New Material (Taizhou) Co., Ltd. | Director | December 2023 | No | |
| Wang Yafang | Suzhou Shenghui Equipment Co., Ltd. | Director | May 14, 2018 | No | |
| Wang Yafang | Dalian Yishengyuan Property Co., Ltd. | Supervisor | March 19, 2018 | No | |
| Wang Yafang | Zhejiang Daishan Rural Commercial Bank Co., Ltd. | Director | February 05, 2018 | No | |
| Wang Yafang | Hangzhou Shengyuan Real Estate Development Co., Ltd. | Supervisor | June 24, 2014 | No | |
| Wang Yafang | Rongsheng Technology Co., Ltd. | Supervisor | April 28, 2016 | No | |
| Wang Yafang | Hainan Shenggu Petrochemical Equipment Investment Co., Ltd. | Supervisor | November 25, 2019 | No | |
| Wang Yafang | Zhejiang Yuhuan Yongxing Rural Bank Co., Ltd. | Director | September 08, 2017 | September 04, 2023 | No |
| Description of employment in other units | None | ||||
Penalties imposed by securities regulatory authorities in the past three years on the Company's current and dismissed directors, supervisors and senior managementin the reporting period?Applicable □Not applicableSee "XII. Punishment and Rectification" in "Section VI Important Matters" for details.
3. Remuneration of the directors, supervisors and senior management
Decision-making procedure, basis of determination and actual payment of remuneration of the directors, supervisors and senior management
According to the Articles of Association and the Work Regulations of the Remuneration and Appraisal Committee of the Board of Directors, the remuneration ofand its payment to directors and supervisors should be determined by the General Meeting of Shareholders. The directors and supervisors who hold specific positionsin the Company receive remuneration based on their post and the internal remuneration system, and receive no further allowances. The Remuneration and AppraisalCommittee would assess the annual performance of the senior executives and determine their remuneration based on the evaluation findings. The pay package is thensubmitted to the Board of Directors for deliberation and approval. In conclusion, the remuneration of the Company’s directors, supervisors and senior executives isdetermined by corporate performance, the current remuneration system and personnel performance appraisal.
Remuneration of the Company’s directors, supervisors and senior management during the reporting period
Unit：RMB 10,000
| Name | Gender | Age | Title | Status | Total Pre-tax Remuneration from the Company | Whether Receiving Remuneration from the Company’s Related Party |
| Li Shuirong | Male | 68 | Chairman | Current | 475.92 | No |
| Alharbi, Mitib Awadh M | Male | 47 | Director | Current | 0 | Yes |
| Li Yongqing | Male | 60 | Director | Current | 0 | Yes |
| Li Caie | Female | 61 | Director | Current | 0 | Yes |
| Yu Fengdi | Female | 56 | Director | Current | 0 | Yes |
| Xiang Jiongjiong | Male | 41 | Director and General Manager | Current | 233.43 | No |
| Yan Jianmiao | Male | 59 | Independent director | Current | 14.29 | No |
| Shao Yiping | Female | 61 | Independent director | Current | 14.29 | No |
| Zheng Xiaodong | Male | 46 | Independent director | Current | 14.29 | No |
| Quan Weiying | Female | 46 | Secretary of the Board of Directors | Current | 98.08 | No |
| Sun Guoming | Male | 43 | Chairman of the Board of Supervisors | Current | 0 | Yes |
| Li Guoqing | Male | 54 | Supervisor | Current | 0 | Yes |
| Xu Yongming | Male | 53 | Supervisor | Current | 156.52 | No |
| Zhou Xianhe | Male | 49 | Vice General Manager | Current | 154.19 | No |
| Wang Yafang | Female | 45 | CFO | Current | 98.13 | No |
| Total | -- | -- | -- | -- | 1,259.14 | -- |
Description of other situations
□Applicable ?Not applicable
VI. The Performance of Duties of Directors During the Reporting Period
1. Convening of the Board of Directors Meetings during the reporting period
| Session | Convening date | Disclosure date | Meeting resolution |
| 6th Meeting of the 6th Board of Directors | March 27, 2023 | March 28, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1216233256&announcementTime=2023-03-28 |
| 7th Meeting of the 6th Board of Directors | April 19, 2023 | April 20, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1216478194&announcementTime=2023-04-20 |
| 8th Meeting of the 6th Board of Directors | April 26, 2023 | April 27, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1216613522&announcementTime=2023-04-27 |
| 9th Meeting of the 6th Board of Directors | July 31, 2023 | August 01, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1217431004&announcementTime=2023-08-01 |
| 10th Meeting of the 6th Board of Directors | August 21, 2023 | August 22, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1217595007&announcementTime=2023-08-22 |
| 11th Meeting of the 6th Board of Directors | August 25, 2023 | August 26, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1217651531&announcementTime=2023-08-26 |
| 12th Meeting of the 6th Board of Directors | September 07, 2023 | September 08, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1217803067&announcementTime=2023-09-08 |
| 13th Meeting of the 6th Board of Directors | October 25, 2023 | October 26, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1218148405&announcementTime=2023-10-26 |
| 14th Meeting of the 6th Board of Directors | November 27, 2023 | November 28, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1218454495&announcementTime=2023-11-28 |
| 15th Meeting of the 6th Board of Directors | December 28, 2023 | December 29, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900015502&stockCode=002493&announcementId=1218750704&announcementTime=2023-12-29 |
2. Directors' attendance at the Board of Directors Meetings and General Meeting of Shareholders
| Directors' Attendance at the Board of Directors Meetings and General Meeting of Shareholders | |||||||
| Name of Directors | Number of the Board of Directors Meeting that Should be Attended During the Reporting Period | Number of Presence at the Board of Directors Meeting | Number of Attendance at the Board of Directors Meeting by correspondence | Number of Attendance at the Board of Directors Meeting by Proxy | Number of Absence from the Board of Directors Meeting | Whether Being Absent from the Board of Directors Meeting Twice in a Row | Number of Attendance at the General Meeting of Shareholders |
| Li Shuirong | 10 | 1 | 9 | 0 | 0 | No | 5 |
| Alharbi, Mitib Awadh M | 2 | 0 | 2 | 0 | 0 | No | 0 |
| Li Yongqing | 10 | 1 | 9 | 0 | 0 | No | 5 |
| Li Caie | 10 | 1 | 9 | 0 | 0 | No | 5 |
| Yu Fengdi | 10 | 1 | 9 | 0 | 0 | No | 5 |
| Xiang Jiongjiong | 10 | 1 | 9 | 0 | 0 | No | 5 |
| Quan Weiying | 8 | 1 | 7 | 0 | 0 | No | 5 |
| Yan Jianmiao | 10 | 1 | 9 | 0 | 0 | No | 5 |
| Shao Yiping | 10 | 1 | 9 | 0 | 0 | No | 5 |
| Zheng Xiaodong | 10 | 1 | 9 | 0 | 0 | No | 5 |
3. Disagreement voiced by directors on relevant corporate matters
Whether directors propose an objection to the Company's relevant matters
□Yes ?No
During the reporting period, the directors voiced no disagreement on relevant corporate matters.
4. Additional information on the performance of duties of directors
Whether directors' suggestions to the Company are adopted?Yes □NoExplanations on acceptance or rejection of directors' suggestions to the CompanyActing in accordance with the Company Law of the People’s Republic of China, the Securities Law of thePeople’s Republic of China, the Articles of Association, the Rules of Procedure of the Board of Directors, theCode of Independent Directors and other applicable laws and regulations, the Company’s directors seek to havea detailed understanding of corporate activities, focus on the standardized business operations, exercise theirrights prudently, earnestly perform their duties, and attend relevant meetings. They also put forward valuablesuggestions to improve the Company’s systems and business decision-making, and conscientiously reviewdifferent proposals so as to play their role in strengthening the internal supervision mechanism and safeguardingthe legitimate rights and interests of the Company and all its shareholders.
VII. The Special Committees under the Board of Directors During the Reporting Period
| Name | Members | Number of Sessions | Convening date | Content of Meeting | Important Opinions and Suggestions | Other Matters Concerning Performance of Duties | Matters that Raise Disagreement (If Any) |
| The Audit Committee | Li Yongqing, Li Caie, Yan Jianmiao, Shao Yiping, Zheng Xiaodong | 1 | January 16, 2023 | Reviewed the Rongsheng Petrochemical Co., Ltd. 2022 Internal Audit Work Report, the Rongsheng Petrochemical Co., Ltd. 2022 Q4 Work Report, the Rongsheng Petrochemical Co., Ltd. 2023 Internal Audit Work Plan, and the Rongsheng Petrochemical Co., Ltd. 2023 Q1 Internal Audit Work Plan. | In terms of internal audit, the Audit Committee examined the implementation of the internal audit department’s work plan and verified the audit results. In terms of financial reports, the Audit Committee communicated with the accounting department and external accountants, examined the norms of the financial system and the preparation process for financial reports, and ensured the accuracy and integrity of the reports. In terms of internal control, the Audit Committee agreed that the Company has established a well-designed internal control framework, and that the internal control department has fully carried out the internal control test process in strict accordance with the relevant norms and regulations, so as to effectively control the gaps in internal control and improve the capability in this respect. | All the contents of the meeting were passed after review. | None |
| Audit Committee | Li Yongqing, Li Caie, Yan Jianmiao, Shao Yiping, Zheng Xiaodong | 1 | April 12, 2023 | Reviewed the Report of the Audit Committee on the Performance Evaluation and Supervision of Accounting Firms in 2022 and the Proposal of Rongsheng Petrochemical Co., Ltd. on Renewing the Appointment of Audit Institutions in 2023. | According to the requirements of laws and regulations, combined with the actual situation of the Company, it reviewed the annual performance of accounting firms, internal audit supervision responsibilities and the renewal of audit institutions, and guided the orderly development of internal audit work. | All the contents of the meeting were passed after review. | None |
| Audit Committee | Li Yongqing, Li Caie, Yan Jianmiao, Shao Yiping, Zheng Xiaodong | 1 | April 18, 2023 | Reviewed the Rongsheng Petrochemical Co., Ltd. 2023 Q1 Internal Audit Work Report and the Rongsheng Petrochemical Co., Ltd. 2023 Q2 Internal Audit Work Plan. | In line with the legal guidance and the Company’s actual conditions, the Audit Committee reviewed the quarterly report, put forward opinions on the internal audit results, and guided the internal audit efforts. | All the contents of the meeting were passed after review. | None |
| Audit Committee | Li Yongqing, Li Caie, Yan Jianmiao, | 1 | July 13, 2023 | Reviewed the Rongsheng Petrochemical Co., Ltd. 2023 Q2 Internal Audit Work Report, the Rongsheng | In line with the legal guidance and the Company’s actual conditions, the Audit Committee reviewed the quarterly report, put forward opinions on the internal audit results, and guided the internal audit efforts. | All the contents of the meeting were passed after review. | None |
| Shao Yiping, Zheng Xiaodong | Petrochemical Co., Ltd. 2023 Semi-annual Internal Audit Work Report and the Rongsheng Petrochemical Co., Ltd. 2023 Q3 Internal Audit Work Report. | ||||||
| Audit Committee | Li Yongqing, Li Caie, Yan Jianmiao, Shao Yiping, Zheng Xiaodong | 1 | October 25, 2023 | Reviewed the Rongsheng Petrochemical Co., Ltd. 2023 Q3 Internal Audit Work Report and the Rongsheng Petrochemical Co., Ltd. 2023 Q4 Internal Audit Work Plan. | In line with the legal guidance and the Company’s actual conditions, the Audit Committee reviewed the quarterly report, put forward opinions on the internal audit results, and guided the internal audit efforts. | All the contents of the meeting were passed after review. | None |
| Nomination Committee | Shao Yiping, Li Shuirong, Yu Fengdi, Yan Jianmiao, Zheng Xiaodong | 1 | April 18, 2023 | All members reviewed the work in the past year, evaluated the effectiveness of the nomination process, discussed and determined the new nomination strategy and worked out the work plan for the next year. | During the reporting period, the Nominating Committee met to fully discuss the size and composition of the Board of Directors, and studied the rationality of the election conditions, selection procedures and term of office of the Company's directors and senior executives, and to nominate, review and recommend Mr. Zhou Xianhe as the deputy general manager of the Company in accordance with the Company Law of the People's Republic of China, the Guidelines on Corporate Governance for Listed Companies, the Articles of Association and other applicable laws and regulations, and in combination with the Company's actual conditions. | All the contents of the meeting were passed after review. | None |
| Strategy and ESG Committee | Li Shuirong, Li Yongqing, Yan Jianmiao, Shao Yiping, Zheng Xiaodong | 1 | April 18, 2023 | All members summarized the work in 2022 and reviewed the major business strategy for 2023 and the Social Responsibility Report in 2022. | Major business plan for 2023: 1. Strengthen the monitoring of major projects; 2. Deepen the research on major investment decisions; 3. Prevent and control market risks and maintain stable operations. | All the contents of the meeting were passed after review. | None |
| The Remuneration and Appraisal Committee | Yan Jianmiao, Li Shuirong, Yu Fengdi, Shao Yiping, Zheng Xiaodong | 1 | April 18, 2023 | Reviewed the 2022 Remuneration of the Company's Directors, Supervisors and Senior Executives and the Remuneration Assessment Plan of Directors, Supervisors and Senior Management of the Company in 2023. | During the reporting period, the Remuneration and Appraisal Committee reviewed the rationality of the remuneration package and policy of the Company's directors, supervisors and senior executives, and conducted performance evaluation on them according to their authority and major responsibilities, along with the internal finances and KPI performance for 2022. | All the contents of the meeting were passed after review. | None |
| Risk Control Committee | Zheng Xiaodong, Yan Jianmiao, Shao Yiping, Li Caie, Xiang Jiongjiong | 1 | April 18, 2023 | Reviewed the Assessment of the Company's Operational Risks in 2022 and the Suggestions on Controlling Operational Risks in 2023. | The Risk Control Committee analyzed the situation in 2022 and agreed that in 2023, the Company should continue to focus on the overarching business objectives, summarize and implement the fundamental risk control processes across the major links, key fields and even the whole process, foster a good risk control culture, and improve the comprehensive risk management system. To that end, the Company should develop risk management strategies, evaluate the functional structure of the risk control organization, and improve the risk control information system and internal control system, so as to achieve the annual targets in managing risks and enhance the Company's risk resilience and long-term profitability. | All the contents of the meeting were passed after review. | None |
VIII. The Work of the Board of SupervisorsDuring the reporting period, whether the Board of Supervisors has found that the Company was at risk in the process of its supervisory activities
□Yes ?No
The Board of Supervisors voiced no disagreement on the supervisory matters during the reporting period.
IX. Corporate Staff
1. Staff number, professional composition, and educational background
| Number of Staff on the Parent Company’s Payroll at the End of the Reporting Period | 1,935 |
| Number of Staff on the Main Subsidiaries’ Payroll at the End of the Reporting Period | 17,256 |
| Total Number of Staff on the Company’s Payroll at the End of the Reporting Period | 19,191 |
| Total Number of Staff Receiving Remuneration | 19,191 |
| Number of Retired Staff Whose Pensions Are Covered by the Parent Company and Main Subsidiaries | 0 |
| Professional Composition | |
| Category | Number |
| Production Staff | 13,747 |
| Sales Staff | 330 |
| Technical Staff | 3,210 |
| Financial Staff | 117 |
| Administrative Staff | 1,287 |
| Logistical Staff | 500 |
| Total | 19,191 |
| Educational Background | |
| Category | Number |
| Bachelor’s Degree or Above | 5,301 |
| Junior College | 7,211 |
| Senior High School and Technical Secondary School | 2,616 |
| Others | 4,063 |
| Total | 19,191 |
2. Remuneration policy
The Company abides by the Labor Law and other applicable rules and regulations, and takes aperformance-based remuneration allocation approach. The Company continues to improve the pay and benefitsstructure, determines the salary based on an employee's responsibility and capability, and employs a differentialreward mechanism, so as to motivate the employees and inspire their creativity.
3. Training program
The Company values the development of employees’ business skills and has built a well-designed careerdevelopment platform to enable employees to identify their future paths and unlock their full potential. TheCompany delivers professional and practical training programs in a systematic way by combining theory andpractice to improve the employees’ comprehensive capability in the professional field.
4. Labor outsourcing
□Applicable ?Not applicable
X. Distribution of Corporate Profits and Shift of Public Accumulation Funds to CapitalStock
Formulation, implementation or adjustment of profit distribution policy, especially the cash dividend policy,during the reporting period?Applicable □Not applicable
According to the profit distribution plan for 2022 approved at the 7th Meeting of the Sixth Session of theBoard of Directors on April 18, 2023, based on the current equity base of 9,842,382,348 shares which is basedon existing total share capital of 10,125,525,000 shares deducted by the repurchased shares of 283,142,652shares, the Company plans to give RMB 1.50 in cash (tax included) to all its shareholders for every ten sharesthey hold. There will be no equity dividend or conversion of equity reserve into the share capital of theCompany. The Company has completed the profit distribution according to the plan.
| Special description of cash dividend policy | |
| Whether it complies with provisions of the Articles of Association or resolution of the General Meeting: | Yes |
| Whether the dividend standards and proportions are clear: | Yes |
| Whether the relevant decision-making procedures and mechanisms are complete: | Yes |
| Whether the independent directors perform their duties and play their due role: | Yes |
| If the Company does not dole out cash dividends, it shall disclose the specific reasons and the next steps it intends to take to enhance the level of investor returns: | N/A |
| Whether the minority shareholders have the opportunity to fully express their opinions and demands, and whether their legitimate rights and interests have been fully protected: | Yes |
| Whether the conditions and procedures for adjusting or changing cash dividend policy are compliant and transparent: | Yes |
The Company was profitable during the reporting period and the parent company's profit available for distributionto shareholders was positive but no cash dividend distribution proposal was made.
□Applicable ?Not applicable
Profit Distribution and Conversion of Capital Reserve into Share Capital during the Reporting Period?Applicable □Not applicable
| Number of bonus shares per 10 shares (shares) | 0 |
| Dividend per 10 shares (yuan) (tax inclusive) | 1.00 |
| Equity base for distribution proposal (shares) | 9,573,144,542 |
| Total cash dividend (including other means) (yuan) | 957,314,454.20 |
| Total cash dividend (including other means) as a percentage of total profit distribution | 100.00% |
| Cash dividends | |
| Where the Company is in a growth stage with any significant fund expenditure arrangement, cash dividend shall not be less than 20% of the total profit distribution at the time of profit distribution; | |
| Detailed Information on the Distribution of Corporate Profits and the Shift Plan of Public Accumulation Funds to Capital Stock | |
| Audited by Pan-China Certified Public Accountants (Special General Partnership), the Company (parent company) realized a net profit of 876,812,499.59 yuan for the year 2023, plus the undistributed profit of 1,760,789,418.72 yuan at the beginning of the year, less the legal surplus reserve of 87,681,249.96 yuan withdrawn in the current period, and less the cash dividend of 1,476,357,352.2 yuan in the previous year, the actual profit available for distribution to the shareholders as of December 31, 2023 | |
was 1,073,563,316.15 yuan.The Company plans to distribute cash dividend of 1 yuan (tax inclusive) per 10 shares to all shareholders. Cash dividend totaling957,314,454.2 yuan (tax inclusive) is to be distributed, which is calculated based on the Company’s total share less accumulativerepurchased shares of 552,380,458 shares as of the date of approval for issuing the financial statements, i.e., 9,573,144,542 shares,with remaining undistributed profit carried forward to the following period. In this year, the Company will distribute 0 bonusshares for every 10 shares and transfer 0 shares for every 10 shares from capital reserve. The shares of the Company held by theCompany through the special securities account for repurchase will not participate in the profit distribution. If the Company’s totalshare capital changes due to convertible bond conversion, share repurchase, repurchase and cancellation of equity incentive sharesgranted, grant and registration of reserved shares, etc. before the equity registration date of equity distribution, total distributionamount will be adjusted, with distribution proportion unchanged.
XI. Implementation of the Equity Incentive Plan, Employee Stock Ownership Plan or otherEmployee Incentives
□Applicable ?Not applicable
The Company had no implementation of a equity incentive plan, employee stock ownership plan or otheremployee incentives during the reporting period.
XII. Institutional Development and Implementation of Internal Control During theReporting Period
1. Construction and implementation of internal control
The Company has established a sound internal control management system in accordance with theapplicable laws, regulations and normative documents such as the Company Law of the People’s Republic ofChina, the Securities Law of the People’s Republic of China, the Guidelines on the Bylaws of Listed Companies,and the Guidelines on Corporate Governance for Listed Companies and in combination with the actualconditions facing the Company. The Company has developed internal management systems concerning externalguarantees and related-party transactions, regularly inspected and evaluated various systems, and amended themin line with the new laws and regulations issued by the regulatory authorities.
2. Specific information on major internal control defects found during the reporting period
□Yes ?No
XIII. Management Control of Subsidiaries during the Reporting Period
N/AXIV. Internal Control Assessment Report and Internal Control Audit Report
1. Internal control assessment report
| Report Disclosure Date | April 26, 2024 |
| Report Disclosure Index | The Corporate Internal Control Self-Assessment Report 2023 is available on CNINFO (http://www.cninfo.com.cn). |
| Proportion of the Total Assets of the Organizations Included in the Assessment Scope to Those of the Company’s Consolidated Financial Statements | 94.59% | |
| Proportion of the Operating Revenues of the Organizations Included in the Assessment Scope to Those of the Company’s Consolidated Financial Statements | 93.82% | |
| Defect Identification Standards | ||
| Category | Financial Statements | Non-Financial Statements |
| Qualitative Standards | Indicators of material deficiencies in financial reporting include: (1) Ineffective control environment; (2) Fraud by directors, supervisors and senior management; (3) A material misstatement in the current period’s financial report identified by an external audit and the Company’s failure to detect the misstatement in the course of its operations; (4) Ineffective supervision of internal control by the corporate audit committee and internal audit organization; (5) Other deficiencies that may affect the correct judgment of statement users. Indicators of significant deficiencies in financial reporting include internal control deficiencies that, alone or together with other deficiencies, have a reasonable likelihood of causing an inability to prevent or detect and correct, in a timely manner, misstatements in financial reporting that, although not meeting or exceeding the level of significance, nonetheless warrant the attention of the Board of Directors and management. General deficiencies are control deficiencies other than the material deficiencies and significant deficiencies described above. | If the following circumstances occur, it can be recognized as material deficiencies, and other circumstances depending on the degree of impact can be recognized as significant deficiencies or general deficiencies, respectively. (1) Unscientific corporate decision-making procedures; (2) Violation of national laws and regulations, such as environmental pollution; (3) Loss of management or technical personnel in a large scale; (4) Frequent negative news in the media; (5) The results of internal control evaluations, especially material or significant deficiencies, have not been rectified; (6) Lack of institutional control over important operations or systematic failure of the system. |
| Quantitative Standards | The operating income and total assets are taken as the measurement indicators. Internal control deficiencies that may cause or result in losses related to the statement of profit are measured by the indicator of operating revenues. If the amount of financial reporting misstatements that may result from the deficiency, alone or together with other deficiencies, is less than 0.5% of operating revenues, it is recognized as a general deficiency; if it exceeds 0.5% of operating revenues but is less than 1%, it is recognized as a significant deficiency; if it exceeds 1% of operating revenues, it is recognized as a material deficiency. Internal control deficiencies that may result in or result in losses related to asset management are measured by the indicator of total assets. If the amount of financial reporting misstatements that may result from the deficiency, alone or together with other deficiencies, is less than 0.5% of total assets, it is recognized as a general | The operating income and total assets are taken as the measurement indicators. Internal control deficiencies that may cause or result in losses related to the statement of profit are measured by the indicator of operating revenues. If the amount of financial reporting misstatements that may result from the deficiency, alone or together with other deficiencies, is less than 0.5% of operating revenues, it is recognized as a general deficiency; if it exceeds 0.5% of operating revenues but is less than 1%, it is recognized as a significant deficiency; if it exceeds 1% of operating revenues, it is recognized as a material deficiency. Internal control deficiencies that may result in or result in losses related to asset management are measured by the indicator of total assets. If the amount of financial reporting misstatements that may result from the deficiency, alone or together with other deficiencies, is less than 0.5% of total assets, it is recognized as a general |
| deficiency; if it exceeds 0.5% of total assets but is less than 1%, it is recognized as a significant deficiency; if it exceeds 1% of total assets, it is recognized as a material deficiency. | deficiency; if it exceeds 0.5% of total assets but is less than 1%, it is recognized as a significant deficiency; if it exceeds 1% of total assets, it is recognized as a material deficiency. | |
| Number of material defects in financial statements | 0 | |
| Number of material defects in non-financial statements | 0 | |
| Number of important defects in financial statements | 0 | |
| Number of important defects in non-financial statements | 0 | |
2. Internal control audit report
?Applicable □Not applicable
| Review Suggestions Section in the Internal Control Audit Report | |
| In our opinion, Rongsheng Petrochemical maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, in accordance with the Basic Standard for Enterprise Internal Control and related provisions. | |
| Report Disclosure Status | Disclosed |
| Report Disclosure Date | April 26, 2024 |
| Report Disclosure Index | The Internal Control Audit Report in 2023 is available on CNINFO (http://www.cninfo.com.cn). |
| Suggestions Category | Standard Clean Opinion |
| Whether Having Material Defects in Non-Financial Statements | No |
Whether the accounting firm issued the internal control audit report of non-standard opinion
□Yes ?No
The internal control audit report of the accounting firm is in line with the self-assessment report of the Board ofDirectors or not?Yes □NoXV. Rectification of Self-Examined Problems under the Special Campaign of CorporateGovernance for Listed CompaniesDuring the reporting period, the Company complied with the China Securities Regulatory Commission'sNotice on Launching the Special Campaign of Corporate Governance for Listed Companies (CSRC 2020 No.
69) and examined the problems in corporate governance conscientiously and responsibly. The Company alsoreceived effective guidance from the local regulatory authorities, improved the ledger documenting the progressof the Special Campaign, and offered timely feedback on the self-examination results. We found zero problemsthat need rectifying.
Section V Environmental and Social Responsibility
I. Major Environmental IssuesWhether the listed company and its subsidiaries are key emission companies announced by the environmentalprotection department?Yes □NoEnvironmental protection-related policies and industry standardsThe Company and its subsidiaries have strictly abided by the laws and regulations such as the EnvironmentalProtection Law of the People's Republic of China, Law of the People's Republic of China on the Prevention andControl of Environmental Pollution by Solid Waste, Law of the People's Republic of China on Prevention andControl of Environmental Noise Pollution, Law of the People's Republic of China on Prevention and Control ofAir Pollution, Law of the People's Republic of China on Prevention and Control of Radioactive Pollution, and therequirements of the ecological environmental protection department, and timely handled the environmentalprotection permit procedures such as emission right, applied for and obtained the pollutant discharge permit,business license for hazardous waste and radiation safety permit; They have implemented procedures such asfiling the sewage outlet into the sea, filing the self-monitoring plan and filing the emergency plan for suddenenvironmental incidents, and ensured the legal start-up and legitimate operation of relevant devices of all projectsand supporting projects.
1. Executive standards
(1) The emissions of flue gas from the heating furnace, catalytic regeneration flue gas, tail gas from the sulfurunit, reforming catalytic regeneration flue gas, organic waste gas and the concentration of atmospheric pollutantsat the plant boundary shall comply with the special emission limits for atmospheric pollutants specified in theEmission Standard of Pollutants for Petroleum Refining Industry (GB31570-2015) and the Emission Standard ofPollutants for Petrochemical Industry (GB31571-2015) and Emission Standards for Synthetic Resin IndustryPollutants (GB31572-2015).
(2) The sulfuric acid mist of sulfuric acid plants shall be subject to the special emission limits of atmosphericpollutants 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 OdorPollutants (GB14554-93).
(4) The exhaust gas pollutants of the power boiler shall be subject to an 80% commitment value of emissionlimit 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 limitsof 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 complywith 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 theEmission 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 Standardfor Noise at Boundary of Industrial Enterprises (GB12348-2008).
(8) The Integrated Project and the Solid Waste Disposal Center shall implement the Standard for PollutionControl on the Non-hazardous Industrial Solid Waste Storage and Landfill (GB18599-2001), the Standard for
Pollution Control of Hazardous Waste Storage (GB18597-2001), the Standard for Pollution Control of HazardousWaste Incineration (GB18484-2020) and the Standard for Pollution Control of Hazardous Waste Landfill(GB18598-2019).
2. Quality standards
(1) The base and the points of concern shall implement the Class I (Class I area) and Class II (Class II area)standards in the Ambient Air Quality Standard (GB3095-2012) according to the category of ambient air functionalareas. The Cm value specified in Detailed Explanation of Integrated Emission Standard of Air Pollutants is takenas 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
| S/N | Certificate | Certificate No. | Issued by | Period of validity |
| 1 | Rongsheng Petrochemical Pollutant Discharge Permit | 91330000255693873W001P | Hangzhou Ecological Environment Bureau | November 05, 2026 |
| 2 | ZPC Pollutant Discharge Permit | 913309003440581426001P | Zhoushan Ecological Environment Bureau Daishan Branch | July 18, 2024 |
| 3 | ZPC Radiation Safety Permit | ZHFZ [L2105] | Zhoushan Ecological Environment Bureau | February 28, 2029 |
| 4 | Zhongjin Petrochemical Pollutant Discharge Permit | 91330211764527945N001P | Ningbo Ecological Environment Bureau (Zhenhai Branch) | December 31, 2025 |
| 5 | Zhongjin Petrochemical Radiation Safety Permit | ZHFZ [B2500] | Ecological Environment Department of Zhejiang Province | July 16, 2028 |
| 6 | Pollutant Discharge Permit for Limited Company of Niluoshan New Energy | 91330211MA2CHYTM1K001V | Ningbo Ecological Environment Bureau (Zhenhai Branch) | February 09, 2027 |
| 7 | Pollutant Discharge Permit of Yisheng Dahua | 912102137873094570001R | Dalian Ecological Environment Bureau | October 13, 2028 |
| 8 | Radiation Safety Permit of Yisheng Dahua | LHFZ [B0001] | Dalian Ecological Environment Bureau | November 25, 2026 |
| 9 | Pollutant Discharge Permit of Hainan Yisheng | 914603005527989627001P | Ecological Environment Bureau of Yangpu Economic Development Zone | May 14, 2026 |
| 10 | Radiation Safety Permit of Hainan Yisheng | QHFZ [00153] | Department of Emergency Management of Hainan Province | December 26, 2026 |
| 11 | Zhejiang Yisheng Pollutant Discharge Permit | 91330200744973411W001W | Ningbo Ecological Environment Bureau (Beilun Branch) | August 02, 2028 |
| 12 | Zhejiang Yisheng Radiation Safety Permit | ZHFZ (B2005) | Ecological Environment Department of Zhejiang Province | November 17, 2024 |
| 13 | Shengyuan Petrochemical Fiber Pollutant Discharge Permit | 91330109754409144F001P | Hangzhou Ecological Environment Bureau | November 05, 2026 |
| 14 | Shengyuan Petrochemical Fiber Radiation Safety Permit | ZHFZ [A2408] | Hangzhou Ecological Environment Bureau | December 04, 2028 |
| 15 | Pollutant Discharge Permit of Yongsheng Technology | 91330621MA2887DL53001Q | Shaoxing Ecology and Environment Bureau | February 06, 2029 |
| 16 | Radiation Safety Permit of Yongsheng Technology | ZHFZ [D2193] | Ecological Environment Department of Zhejiang Province | August 07, 2027 |
Industry emission standards and specific situations of pollutant emissions involved in production and operation activities
| Company or Subsidiary Name | Types of main pollutants and particular pollutants | Names of main pollutants and particular pollutants | Discharge method | Number of discharge outlets | Distribution of discharge outlets | Emission concentration/intensity | Pollutant discharge standards in execution | Total emissions | Total certified emissions | Excessive emissions |
| Rongsheng Petrochemical | Waste gas | Smoke dust | Organized | 2 | Ultra-clean of Rongxiang furnace area | 2.357mg/m? | 20mg/Nm? | 3.3997t/a | 13.65t/a | / |
| Rongsheng Petrochemical | Waste gas | Sulfur dioxide | Organized | 2 | Ultra-clean of Rongxiang furnace area | 3.462mg/m? | 50mg/Nm? | 4.8752t/a | 121.93t/a | / |
| Rongsheng Petrochemical | Waste gas | NOx | Organized | 2 | Ultra-clean of Rongxiang furnace area | 20.647mg/m? | 150mg/Nm? | 28.5046t/a | 102.59t/a | / |
| Rongsheng Petrochemical | Waste gas | VOC | Organized | 2 | Ultra-clean of Rongxiang furnace area | 0.633mg/m? | 60mg/L | 0.9769t/a | 110.38t/a | / |
| Rongsheng Petrochemical | Waste water | Ammonia nitrogen | Under control | 1 | Shengyuan factory gate | 1.72mg/m? | 35mg/L | 0.0735t/a | 0.16t/a | / |
| Rongsheng Petrochemical | Waste water | Chemical oxygen demand | Under control | 1 | Shengyuan factory gate | 29.5mg/m? | 500mg/Nm? | 1.22575t/a | 3.69t/a | / |
| ZPC | Waste gas | Particulate matter | Discharge after treatment | 58 | In the factory | Mean: 0.73mg/,; range: 0-11.23mg/m3 | GB31570、GB31571、GB31572 | 113.68t/a | 1,565.64t/a | / |
| ZPC | Waste gas | Sulfur dioxide | Discharge after treatment | 89 | In the factory | Mean: 3.09mg/,; range: 0.08— 29.39mg/m3 | GB31570、GB31571、GB31572 | 432.92t/a | 2750.8t/a | / |
| ZPC | Waste gas | NOx | Discharge after treatment | 91 | In the factory | Mean: 31.58mg/,; range: 0.26— 103.05mg/m3 | GB31570、GB31571、GB31572 | 4354.19t/a | 7078.45t/a | / |
| ZPC | Waste water | COD | Discharge after treatment | 1 | In the factory | Mean: 31.24mg/,; range: 1.1— 55mg/m3 | GB31570、GB31571、GB31572 | 507.07t/a | 524.04t/a | / |
| ZPC | Waste water | Ammonia nitrogen | Discharge after treatment | 1 | In the factory | Mean: 0.1352mg/,; range: 0.01— 4.31mg/m3 | GB31570、GB31571、GB31572 | 2.92t/a | 53.31t/a | / |
| Zhongjin Petrochemical | Waste gas | Sulfur dioxide | Continuous blow-down | 15 | Whole factory | 102.08mg/m? | GB13223、GB31570 | 54.16t/a | 251.76t/a | / |
| Zhongjin Petrochemical | Waste gas | NOx | Continuous blow-down | 15 | Whole factory | 475.70mg/m? | GB13223、GB31570 | 238.39t/a | 1141.74t/a | / |
| Zhongjin Petrochemical | Waste gas | Smoke dust | Continuous blow-down | 15 | Whole factory | 56.49mg/m? | GB13223、GB31570 | 29.6t/a | 216.47t/a | / |
| Zhongjin Petrochemical | Waste water | Chemical oxygen demand | Continuous blow-down | 2 | East side | 59.49mg/L | GB8978 | 99.19t/a | 469.68t/a | / |
| Zhongjin Petrochemical | Waste water | Ammonia nitrogen | Continuous blow-down | 2 | East side | 1.20mg/L | GB8978 | 1.26t/a | 52.42t/a | / |
| Yisheng Dahua | Waste gas | NOx | Continuous blow-down | 3 | Southeast corner of the plant | 23.48mg/m? | 50mg/m? | 107.04t/a | 405t/a | / |
| Yisheng Dahua | Waste gas | Sulfur dioxide | Continuous blow-down | 3 | Southeast corner of the plant | 1.15mg/m? | 35mg/m? | 3.54t/a | 251t/a | / |
| Yisheng Dahua | Waste gas | Smoke dust | Continuous blow-down | 3 | Southeast corner of the plant | 1.32mg/m? | 5mg/m? | 4.84t/a | 51t/a | / |
| Yisheng Dahua | Waste water | Chemical oxygen demand | Continuous blow-down | 2 | Northwest corner and north side of the plant | 56.28mg/L | 300mg/L | 708.77t/a | 1680t/a | / |
| Yisheng Dahua | Waste water | Ammonia nitrogen | Continuous blow-down | 2 | Northwest corner and north side of the plant | 0.2mg/L | 30mg/L | 4.88t/a | 182t/a | / |
| Hainan Yisheng | Waste gas | SO2 | Discharge after treatment | 2 | Boiler/heat medium furnace | Boiler: 12.25mg/m? Heat medium furnace: 39.54mg/m? | Boiler: 50mg/m? Heat medium furnace: 200mg/m? | 128.07t/a | 679.9t/a | / |
| Hainan Yisheng | Waste gas | NOx | Discharge after treatment | 2 | Boiler/heat medium furnace | Boiler: 22.86mg/m? Heat medium furnace: 100.43mg/m? | Boiler: 100mg/m? Heat medium furnace: 200mg/m? | 274.13t/a | 989.9t/a | / |
| Hainan Yisheng | Waste gas | Smoke dust | Discharge after treatment | 2 | Boiler/heat medium furnace | Boiler: 4.91mg/m? Heat medium furnace: 12.75mg/m? | Boiler: 20mg/m? Heat medium furnace: 30mg/m? | 41.92t/a | 232t/a | / |
| Hainan Yisheng | Waste water | COD | Discharge after treatment | 1 | Sewage station | 27.67mg/m? | 50mg/m? | 121.35t/a | 236.15t/a | / |
| Hainan Yisheng | Waste water | Ammonia nitrogen | Discharge after treatment | 1 | Sewage station | 0.17mg/m? | 5mg/m? | 0.67t/a | 17.7t/a | / |
| Zhejiang Yisheng | Waste gas | SO2 | Discharge after treatment | 2 | Boiler island | 9.68mg/m?/7.61mg/m? | 35mg/m? | 39.24t/a | 197.45t/a | / |
| Zhejiang Yisheng | Waste gas | NOX | Discharge after treatment | 2 | Boiler island | 14.98mg/m?/21.53mg/m? | 50mg/m? | 72.98t/a | 409.53t/a | / |
| Zhejiang Yisheng | Waste gas | Smoke dust | Discharge after treatment | 2 | Boiler island | 3.26mg/m?/1.76mg/m? | 10mg/m? | 14.84t/a | 78.99t/a | / |
| Zhejiang Yisheng | Waste water | COD | Discharge after treatment | 1 | Sewage station | 46.03mg/L/32.08mg/L | 100mg/L/60mg/L | 606.84t/a | 1039.84t/a | / |
| Zhejiang Yisheng | Waste water | Ammonia nitrogen | Discharge after treatment | 1 | Sewage station | 0.17mg/L/0.15mg/L | 8mg/L | 2.25t/a | 15.59t/a | / |
| Shengyuan Chemical Fiber | Waste gas | Particulate matter | Organized | One for use and one for standby | Furnace area | 3.8mg/m? | 20mg/Nm? | 6.86t/a | 8.74t/a | / |
| Shengyuan Chemical Fiber | Waste gas | Sulfur dioxide | Organized | One for use and one for standby | Furnace area | 1.68mg/m? | 50mg/Nm? | 3.18t/a | 17.38t/a | / |
| Shengyuan Chemical Fiber | Waste gas | NOx | Organized | One for use and one for standby | Furnace area | 26.34mg/m? | 150mg/Nm? | 40.38t/a | 52.15t/a | / |
| Shengyuan Chemical Fiber | Waste gas | Non-methane | Organized and unorganized | One for use and one for standby | Furnace area | 0.9mg/m? | 60mg/L | 1.337t/a (organized) | 97.29t/a | / |
| Shengyuan Chemical Fiber | Waste water | Ammonia nitrogen | Organized | 1 | Southeast corner of the plant | 1.72mg/m? | 35mg/L | 0.0735t/a | 1.3t/a | / |
| Shengyuan Chemical Fiber | Waste water | Chemical oxygen demand | Organized | 1 | Southeast corner of the plant | 29.57mg/m? | 500mg/Nm? | 1.22575t/a | 2.74t/a | / |
| Yongsheng Technology | Waste gas | NOx | Organized emission | 1 | In the factory | 45mg/m? | Emission Standard of Air Pollutants for Boilers (GB13271-2014) | 22.261t/a | 86t/a | / |
| Yongsheng Technology | Waste gas | Sulfur dioxide | Organized emission | 1 | In the factory | 6mg/m? | Emission Standard of Air Pollutants for Boilers (GB13271-2014) | 1.278t/a | 106.2t/a | / |
| Yongsheng Technology | Waste gas | NmHc | Organized emission | 1 | In the factory | 4.5mg/m? | Emission Standard of Air Pollutants for Boilers (GB13271-2014) | 12.713t/a | 19.27t/a | / |
| Yongsheng Technology | Waste water | Chemical oxygen demand | Under control | 1 | In the factory | 165mg/L | Integrated Wastewater Discharge Standard (GB31575-2015) | 4.948t/a | 10.8t/a | / |
| Yongsheng Technology | Waste water | Ammonia nitrogen | Under control | 1 | In the factory | 18.8mg/L | Integrated Wastewater Discharge Standard (GB31575-2015) | 0.037t/a | 1.35t/a | / |
Treatment of pollutants
| Company name | Types of pollutants | Treatment technology and treatment mode |
| Rongsheng Petrochemical | Waste gas, waste water and solid waste | The company began to construct the ultra-clean desulfurization tower and flue gas desulfurization and dust removal device in March 2016, which was put into operation in September 2016. At present, the device is in good operation and can meet the flue gas emission standard of Xiaoshan District. |
| ZPC | Waste gas, waste water, solid waste and noise | The prevention and control measures are strictly designed, constructed, and put into use simultaneously with the main equipment in accordance with the requirements of environmental impact assessment. Currently, the operation is in good condition. According to other rectification requirements proposed by the environmental protection department, some pollution prevention and control facilities have been added, further improving the environmental protection management level of the device. |
| Zhongjin Petrochemical | Waste gas, waste water, solid waste and noise | The prevention and control measures are designed, constructed, and put into use simultaneously with the main device according to the EIA requirements. The operation is now in good condition. |
| Yisheng Dahua | Waste gas, waste water, solid waste and noise | The prevention and control measures are strictly designed, constructed, and put into use simultaneously with the main equipment in accordance with the requirements of environmental impact assessment. Currently, the operation is in good condition and all pollutants are discharged up to the standard. At the same time, according to the rectification requirements proposed by the ecological and environmental protection department, new environmental governance facilities have been added, further improving the level of environmental governance. |
| Shengyuan Chemical Fiber | Waste gas | 1.38 tons of volatile organic compounds, 6.87 tons of particulate matters, 3.18 tons of sulfur dioxide and 40.39 tons of nitrogen oxides; |
| The discharge concentration meets the permit limit in the Pollutant Discharge Permit. | |||
| Waste water | 2.45 tons of total chemical oxygen demand, and 0.15 tons of ammonia nitrogen; The discharge concentration meets the permit limit in the Pollutant Discharge Permit. | ||
| Solid waste | 284.1 tons of all kinds of hazardous wastes were generated, all of which were handled by the outsourcing qualification units, and 13,236 tons of all kinds of general solid wastes were handled by the outsourcing qualification units. | ||
| Yongsheng Technology | Waste gas | Waste gas treatment | 1 set of stripper |
| Gas boiler flue gas low-nitrogen combustion system | |||
| Secondary activated carbon adsorption device matched with film drawing workshop | |||
| Pulse dust removal device for PTA feeding dust | |||
| 1 set of odor generating unit capping and waste gas collection and treatment device in sewage station | |||
| Waste water | Sewage Treatment | 1 set of sewage treatment system with a treatment capacity of 1000t/d | |
| Rain and sewage diversion, clean water and sewage diversion, etc. | Establish rain and sewage diversion system and clean water and sewage diversion system in the factory area; Standardize the sewage outlets in the factory area, and install online monitoring devices for pH, COD and ammonia nitrogen | ||
| Noise | Noise control | Set up a sound insulation room separately, install sound attenuation and sound insulation equipment, choose low-noise equipment, make reasonable layout, and ensure basic vibration prevention and noise reduction | |
| Solid waste | Solid waste disposal | Standardize the hazardous waste yards and general solid waste yards, and dispose of hazardous waste | |
Emergency response plan for environmental emergencies
| Emergency plan | Filing number | Filing time |
| Emergency Response Plan for Paroxysmal Environment Events of Rongsheng Petrochemical Co., Ltd. | 330109-2022-045-L | July 26, 2022 |
| Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Petroleum & Chemical Co., Ltd. | 330921-2023-004-H | July 11, 2023 |
| Emergency Response Plan for Paroxysmal Environment Events of Ningbo Zhongjin Petrochemical Co., Ltd. | 330211-2022-019-H | March 2022 |
| Emergency Response Plan for Paroxysmal Environment Events of Yisheng Dahua Petrochemical Co., Ltd. | 2102132023-066-H | March 2023 |
| Emergency Response Plan for Paroxysmal Environment Events of Hainan Yisheng Petrochemical Co., Ltd. | / | December 2021 |
| Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Yisheng Petrochemical Co., Ltd. | / | September 2023 |
| Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Shengyuan Chemical Fiber Co., Ltd. | 330109-2022-034-L | June 02, 2022 |
| Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Yongsheng Technology Co., Ltd. | 330621-2021-106-L | October 2021 |
Environmental self-monitoring planThe Company and its subsidiaries strictly abide by the environmental protection laws, regulations andrelevant 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 therequirements of laws and regulations. The self-monitoring plan is disclosed in the pollution source monitoringdata management system. The Company carries out pollution source monitoring in strict accordance with themonitoring scheme to ensure that all pollutants are discharged in strict accordance with the requirements of lawsand regulations, and entrusts a qualified third-party monitoring agency to carry out monitoring on a regular basis.Investment in environmental governance and protection and payment of environmental protection taxesThe Company’s investment in environmental governance and protection in 2023 was RMB 659,566,732.Measures taken to reduce carbon emissions during the reporting period and their effects?Applicable □Not applicable
For specific measures, please refer to the 2023 Sustainability Report disclosed by the Company on April 26,2024 on CNINFO (www.cninfo.com.cn).Administrative penalties for environmental issues during the reporting periodNoneOther environmental information that should be disclosedOther environmental information that should be disclosed has been disclosed as required.Other environmental protection-related informationThe Company and its subsidiaries attach great importance to environmental protection and make majordecisions on environmental protection periodically or irregularly. The Company has established a Health, Safetyand Environment (HSE) department to comprehensively supervise and manage the Company's HSE work. Eachsubsidiary has a full-time environmental protection department responsible for daily comprehensive management,supervision and inspection. To understand the dynamic situation of pollution, the Company has established a strictmonitoring system and entrusted the environmental management and monitoring department to monitor the water,gas, sound and slag of the whole plant.Relevant situation of environmental accidents in listed companiesN/AⅡ. Social responsibility information
The Company actively performs its social responsibility. For the full text, please refer to the 2023Sustainability Report released by the Company on April 26, 2024 on CNINFO (www.cninfo.com.cn).
III. Consolidating and expanding the achievements of poverty alleviation and ruralrevitalization
The Company actively performs its social responsibility, and supports poverty alleviation and ruralrevitalization. For relevant information, please refer to the 2023 Sustainability Report disclosed by the Companyon April 26, 2024 on CNINFO (www.cninfo.com.cn).
Section VI Important MattersI. Fulfillment of Commitments
1. Matters in respect of which the Company’s actual controllers, shareholders, related parties, acquirersand the Company and other parties related to the commitments have completed fulfillment of thecommitments during the reporting period and those which have not been completed as of the end of thereporting period?Applicable □Not applicable
| Cause of Commitment | Commitment Party | Commitment Type | Content of Commitment | Time of Commitment | Term of Commitment | Fulfillment |
| Share reform commitment | N/A | N/A | N/A | N/A | N/A | |
| Commitments stated in the Report of Acquisition or Equity Change Report | N/A | N/A | N/A | N/A | N/A | |
| Commitments made in assets reorganization | N/A | N/A | N/A | N/A | N/A | |
| Commitment made during IPO or re-financing | Directors and supervisors of the Company | Commitment made during IPO | Directors Li Shuirong and Li Yongqing and Supervisor Li Guoqing promised that during their term of office, they would not transfer shares they held (including directly and indirectly) in the issuer of more than 25% of the total shares held (including directly and indirectly) by them in the issuer every year. Within half a year after resignation, they would not transfer shares directly or indirectly held by them in the issuer. | November 02, 2010 | Term of commitment for share lock-up is 36 months | Fulfilled |
| Equity incentive commitment | N/A | N/A | N/A | N/A | N/A | |
| Other commitments to minority shareholders of the Company | Shareholders before issuance | Commitment made during IPO | 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 controller and the largest natural person shareholder of the Company, and other shareholders, including Li Yongqing, Li Guoqing, Ni Xincai, Xu Yuejuan and Zhao Guanlong, respectively issued the Letter of Commitment on Avoiding Horizontal Competition and promised not to compete with the company in the same industry. | November 02, 2010 | Long term | Fulfilled |
| Other commitments | N/A | N/A | N/A | N/A | N/A |
| Whether the commitments are performed on time | Yes |
| If the commitments have not been fulfilled after the deadline, the specific reasons for the failure to complete the performance and the work plan for the next step should be explained in details | N/A |
2. Company statement on meeting original profit forecasts for assets or projects and the reasons therefore,where such profit forecasts have been made and the reporting period falls within the profit forecastperiod
□Applicable ?Not applicable
II. Non-operating Occupation of Funds of the Listed Company by the ControllingShareholder and Other Related Parties
□Applicable ?Not applicable
There was no non-operating occupation of funds of the listed company by the controlling shareholder and otherrelated parties during the reporting period.III. Illegal External Guarantee
□Applicable ?Not applicable
There was no illegal external guarantee during the reporting period.
IV. Explanation of the Board of Directors on the relevant situation of the latest issue of the“Non-standard Audit Report”
□Applicable ?Not applicable
V. Explanation of the Board of Directors, the Board of Supervisors and the IndependentDirectors (if any) on the “Non-standard Audit Report” for the reporting period issued bythe accounting firm
□Applicable ?Not applicable
VI. Explanation of Changes in Accounting Policies, Accounting Estimates or Correction ofMajor Accounting Errors Compared with the Financial Report of the Previous Year?Applicable □Not applicableSince January 1, 2023, the Company has implemented the provisions of Interpretation No.16 of AccountingStandards for Business Enterprises issued by the Ministry of Finance on the accounting treatment of deferredincome tax related to assets and liabilities arising from individual transactions that are not exempted from initialrecognition, and adjusted the individual transactions that are subject to this provision between the beginning of theearliest presentation period of the financial statements when the provision is first implemented and the first
implementation date. In case of taxable temporary differences and deductible temporary differences arising fromthe lease liabilities and right-of-use assets recognized due to the application of the provisions at the beginning ofthe earliest presentation period of the financial statements when the provisions are first implemented, as well asthe estimated liabilities related to the recognized disposal obligation and the corresponding related assets, theaccumulated impacted number will be adjusted according to the provisions of the provisions and the AccountingStandards for Business Enterprises No.18-Income Tax to present the beginning retained earnings of the earliestpresentation period of the financial statements and other related financial statement items.
VII. Explanation of Changes in the Scope of Consolidated Statements Compared with theFinancial Report of the Previous Year?Applicable □Not applicable
| Company name | Acquisition and disposal methods during the reporting period |
| Zhoushan ZPC Sales Co., Ltd. | Newly established |
| Ningbo ZPC Sales Co., Ltd. | Newly established |
| Zhejiang ZPC Power Generation Co., Ltd. | Newly established |
| Rongsheng Energy (Zhoushan) Co., Ltd. | Newly established |
| Zhejiang Rongshen New Materials Co., Ltd. | Newly established |
| Zhejiang Shengcheng New Materials Co., Ltd. | Newly established |
| Zhejiang Huiyu New Materials Co., Ltd. | Newly established |
| Zhoushan Yushan Petrochemical Engineering Co., Ltd. | Transfer |
VIII. Appointment and Dismissal of Accounting FirmThe accounting firm employed currently
| Name of domestic accounting firm | Pan-China Certified Public Accountants (Special General Partnership) |
| Remuneration of domestic accounting firms (RMB 10,000) | 800 |
| Consecutive audit services year of domestic accounting firm | 18 |
| Name of the certified public accountant of a domestic accounting firm | Jia Chuan, Xu Haihong |
| Consecutive audit services year of the certified public accountant of a domestic accounting firm | 4, 3 year(s) |
Whether the accounting firm was reappointed during the period
□Yes ?No
Engagement of internal control audit accounting firms, financial advisers or sponsors
□Applicable ?Not applicable
IX. Delisting after the disclosure of the Annual Report
□Applicable ?Not applicable
X. Matters related to bankruptcy and reorganization
□Applicable ?Not applicable
The Company did not have any matters related to bankruptcy or reorganization during the reporting period.XI. Major litigation and arbitration matters
□Applicable ?Not applicable
The Company had no major litigation and arbitration during the reporting period.
XII. Punishment and rectification?Applicable □Not applicable
| Name | Type | Reason | Type of investigation/penalty | Conclusion | Disclosure date | Disclosure reference |
| Rongsheng Petrochemical Co., Ltd. | Others | Zhejiang Securities Regulatory Bureau found in the on-site inspection that the company had irregularities in the recognition of revenue from trading business and in accounting treatment in 2020-2021. | Others | The supervision and management measure of issuing a warning letter was taken and recorded in the integrity archives of securities and futures markets. | January 17, 2023 | For details, please refer to the Announcement on the Company and Relevant Personnel Receiving a Warning Letter from Zhejiang Securities Regulatory Bureau (Announcement No. 2023-002) on the Juchao Information Network (www.cninfo.com.cn). |
| Li Shuirong | Director | |||||
| Xiang Jiongjiong | Director | |||||
| Quan Weiying | Director | |||||
| Wang Yafang | Senior management |
Description of the rectification?Applicable □Not applicableAfter receiving the Warning Letter, the Company and the relevant personnel attach great importance to theproblems pointed out wherein, strictly in accordance with the requirements of the Zhejiang SecuritiesRegulatory Bureau, fully learn from the lessons, continue to strengthen the study of securities laws andregulations, establish and improve and strictly implement the financial and accounting management system,enhance the management of disclosure affairs, and improve the awareness of standardized operation; and toeffectively exercise diligence and duty in order to facilitate the standardized operation of the Company andensure that the disclosure of information is true, accurate, complete, timely and fair, thereby safeguarding theinterests of the Company and all shareholders and promoting the Company’s healthy, stable and sustainabledevelopment.XIII. Integrity of the Company and its controlling shareholders and actual controllers
□Applicable ?Not applicable
XIV. Major Related Transactions
1. Related party transactions related to daily operations
?Applicable □Not applicable
| Related party | Relationship | Type of related party transaction | Contents of related party transaction | Pricing principles of related party transaction | Price of related party transaction | Amount of related party transaction (RMB 10,000) | Proportion to similar transaction amount | Trading limit approved (RMB 10,000) | Exceed the approved limit or not | Settlement of related party transaction | Available market price for similar transaction | Disclosure date | Disclosure reference |
| Rongsheng Holding | Parent company | Purchase of goods | Coal and other materials | Market price | Market price | 1,525,111.48 | 100.00% | 1,600,000 | No | Banker’s acceptance bill, spot exchange, etc. | Market price | April 20, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?stockCode=002493&announcementId=1216478196&orgId=9900015502&announcementTime=2023-04-20 |
| Saudi Aramco | Shareholder company | Purchase of goods | Crude oil, naphtha, ethylene glycol | Market price | Market price | 6,788,629.16 | 32.10% | 7,100,000 | No | Letter of credit, spot exchange | Market price | April 20, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?stockCode=002493&announcementId=1216478196&orgId=9900015502&announcementTime=2023-04-20 |
| Zhejiang Yisheng | Associated enterprise | Sales of goods | PTA、PX | Market price | Market price | 908,673.22 | 5.19% | 1,500,000 | No | Banker’s acceptance bill, spot exchange, etc. | Market price | April 20, 2023 | http://www.cninfo.com.cn/new/disclosure/detail?stockCode=002493&announcementId=1216478196&orgId=9900015502&announcementTime=2023-04-20 |
| Total | -- | -- | 9,222,413.86 | -- | 10,200,000 | -- | -- | -- | -- | -- | |||
| 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 current period is estimated by category (if any) | None | ||||||||||||
| Reasons for substantial differences between the transaction price and market reference price (if applicable) | N/A | ||||||||||||
2. Related party transactions arising from the acquisition and sale of assets or equity
□Applicable ?Not applicable
The Company had no related transactions related to the acquisition or sales of assets or equity during the reportingperiod.
3. Related-party transactions for outward joint investment
□Applicable ?Not applicable
The Company had no related transactions related to joint outward investment during the reporting period.
4. Related transactions on credit and debt
□Applicable ?Not applicable
The Company had no related transactions on credit and debt during the reporting period.
5. Transactions with financial companies with associated relationships
□Applicable ?Not applicable
There are no deposits, loans, credits or other financial operations between the Company and the related financecompanies, and the related party.
6. Transactions between the financial companies controlled by the company and related parties
□Applicable ?Not applicable
There are no deposits, loans, credits or other financial operations between the finance companies controlled by theCompany and the related party.
7. Other major related party transactions
□Applicable ?Not applicable
There were no other major related transactions during the reporting period.XV. Material Contracts and Their Performance
1. Trusteeship, contracting and leasing
(1) Entrustment
□Applicable ?Not applicable
The Company had no entrustment during the reporting period.
(2) Contracting
□Applicable ?Not applicable
There was no contracting during the reporting period.
(3) Lease
□Applicable ?Not applicable
There was no leasing during the reporting period.
2. Major guarantee
?Applicable □Not applicable
Unit：RMB 10,000
| Guarantees of the Company to its subsidiaries | ||||||||||
| Name of guaranteed party | Date of disclosure of announcement relating to guarantee amount | Guarantee amount | Date of actual occurrence | Amount of actual guarantee | Type of guarantee | Collateral (if any) | Counter-guarantees (if any) | Period of guarantee | Completed or not | Related party guarantee or not |
| Shengyuan Chemical Fiber | December 14, 2022 | 5,380,000 | July 21, 2023 | 50 | Joint liability guarantee | January 21, 2024 | No | Yes | ||
| Shengyuan Chemical Fiber | December 14, 2022 | 5,380,000 | February 10, 2023 | 10,500 | Joint liability guarantee | February 10, 2024 | No | Yes | ||
| Shengyuan Chemical Fiber | December 14, 2022 | 5,380,000 | March 16, 2023 | 10,000 | Joint liability guarantee | March 15, 2024 | No | Yes | ||
| Shengyuan Chemical Fiber | December 14, 2022 | 5,380,000 | March 24, 2023 | 50 | Joint liability guarantee | March 24, 2024 | No | Yes | ||
| Shengyuan Chemical Fiber | December 14, 2022 | 5,380,000 | March 24, 2023 | 6,900 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Shengyuan Chemical Fiber | December 14, 2022 | 5,380,000 | July 21, 2023 | 50 | Joint liability guarantee | July 21, 2024 | No | Yes | ||
| Shengyuan Chemical Fiber | December 14, 2022 | 5,380,000 | July 21, 2023 | 9,900 | Joint liability guarantee | August 21, 2024 | No | Yes | ||
| Shengyuan Chemical Fiber | December 14, 2022 | 5,380,000 | May 10, 2023 | 10,000 | Joint liability guarantee | March 21, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | December 09, 2022 | 9,000 | Joint liability guarantee | January 05, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | October 31, 2023 | 2,000 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | October 31, 2023 | 2,000 | Joint liability guarantee | October 25, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | October 31, 2023 | 36,000 | Joint liability guarantee | November 23, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | October 19, 2023 | 16,794.4 | Joint liability guarantee | April 10, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | October 19, 2023 | 8,129.25 | Joint liability guarantee | April 10, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | June 05, 2023 | 10 | Joint liability guarantee | May 31, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | June 05, 2023 | 27,980 | Joint liability guarantee | July 02, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | February 28, 2023 | 33,000 | Joint liability guarantee | February 27, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | April 03, 2023 | 17,000 | Joint liability guarantee | April 02, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | July 12, 2023 | 29,800 | Joint liability guarantee | May 24, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | July 25, 2023 | 20,200 | Joint liability guarantee | May 24, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | July 25, 2023 | 30,000 | Joint liability guarantee | May 24, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | February 01, 2023 | 20,000 | Joint liability guarantee | January 24, 2025 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | February 07, 2023 | 35,000 | Joint liability guarantee | February 06, 2025 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | March 14, 2023 | 13,724.4 | Joint liability guarantee | February 28, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | August 09, 2023 | 60,000 | Joint liability guarantee | February 09, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | December 08, 2022 | 49,850 | Joint liability guarantee | December 08, 2024 | No | Yes |
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | December 08, 2022 | 50 | Joint liability guarantee | June 08, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | May 24, 2023 | 37,400 | Joint liability guarantee | May 24, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | May 26, 2023 | 38,000 | Joint liability guarantee | May 26, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | June 01, 2023 | 6,200 | Joint liability guarantee | June 01, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | June 07, 2023 | 8,300 | Joint liability guarantee | June 07, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | June 13, 2023 | 27,000 | Joint liability guarantee | June 13, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | June 13, 2023 | 7,000 | Joint liability guarantee | June 13, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | June 28, 2023 | 3,500 | Joint liability guarantee | June 28, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | July 03, 2023 | 48,890 | Joint liability guarantee | July 03, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | August 14, 2023 | 53,610 | Joint liability guarantee | August 14, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | December 21, 2023 | 18,949.18 | Joint liability guarantee | June 18, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | December 25, 2023 | 12,276 | Joint liability guarantee | June 22, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | November 06, 2023 | 19,201.38 | Joint liability guarantee | January 02, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | August 07, 2023 | 7,392 | Joint liability guarantee | February 05, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | December 13, 2023 | 13,200 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | December 22, 2023 | 49,500 | Joint liability guarantee | February 17, 2024 | No | Yes | ||
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | August 03, 2023 | 18,150 | Joint liability guarantee | January 22, 2024 | No | Yes |
| Zhongjin Petrochemical | December 14, 2022 | 5,380,000 | October 19, 2023 | 49,500 | Joint liability guarantee | March 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | March 10, 2023 | 9,039.92 | Joint liability guarantee | February 06, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | June 28, 2023 | 16,800 | Joint liability guarantee | June 19, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | July 25, 2023 | 14,400 | Joint liability guarantee | July 12, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | July 27, 2023 | 19,200 | Joint liability guarantee | July 19, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | June 27, 2022 | 22,000 | Joint liability guarantee | June 22, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | May 24, 2023 | 20,000 | Joint liability guarantee | May 22, 2025 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | June 15, 2023 | 33,000 | Joint liability guarantee | June 06, 2025 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | December 18, 2023 | 6,525.82 | Joint liability guarantee | January 19, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | December 28, 2023 | 3,282.99 | Joint liability guarantee | January 31, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | December 28, 2023 | 3,282.99 | Joint liability guarantee | February 03, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | December 28, 2023 | 3,246.18 | Joint liability guarantee | January 31, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | December 28, 2023 | 3,246.18 | Joint liability guarantee | January 31, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | December 28, 2023 | 3,346.58 | Joint liability guarantee | January 29, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | December 28, 2023 | 3,346.58 | Joint liability guarantee | January 29, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | March 16, 2023 | 18,040.27 | Joint liability guarantee | March 10, 2024 | No | Yes | ||
| Yisheng Dahua | December 14, 2022 | 5,380,000 | September 20, 2023 | 9,026.4 | Joint liability guarantee | August 23, 2024 | No | Yes |
| Yongsheng Technology | December 14, 2022 | 5,380,000 | July 25, 2023 | 115.84 | Joint liability guarantee | January 20, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | March 02, 2021 | 3,248.12 | Joint liability guarantee | June 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 16, 2021 | 752 | Joint liability guarantee | June 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | May 24, 2022 | 466 | Joint liability guarantee | June 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | October 14, 2022 | 85.89 | Joint liability guarantee | June 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | September 26, 2023 | 172 | Joint liability guarantee | June 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | October 25, 2023 | 4,800 | Joint liability guarantee | October 24, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | March 02, 2021 | 3,248.12 | Joint liability guarantee | December 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 16, 2021 | 752 | Joint liability guarantee | December 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | May 24, 2022 | 466 | Joint liability guarantee | December 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | October 14, 2022 | 85.89 | Joint liability guarantee | December 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | September 26, 2023 | 172 | Joint liability guarantee | December 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | March 02, 2021 | 5,785.71 | Joint liability guarantee | June 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 16, 2021 | 1,339 | Joint liability guarantee | June 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | May 24, 2022 | 1,164.5 | Joint liability guarantee | June 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | October 14, 2022 | 214.71 | Joint liability guarantee | June 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | September 26, 2023 | 430 | Joint liability guarantee | June 15, 2025 | No | Yes |
| Yongsheng Technology | December 14, 2022 | 5,380,000 | March 02, 2021 | 5,785.71 | Joint liability guarantee | December 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 16, 2021 | 1,339 | Joint liability guarantee | December 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | May 24, 2022 | 1,164.5 | Joint liability guarantee | December 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | October 14, 2022 | 214.71 | Joint liability guarantee | December 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | September 26, 2023 | 430 | Joint liability guarantee | December 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | May 24, 2022 | 2,370 | Joint liability guarantee | June 15, 2026 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | October 14, 2022 | 436.92 | Joint liability guarantee | June 15, 2026 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | September 26, 2023 | 874 | Joint liability guarantee | June 15, 2026 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | May 24, 2022 | 2,369 | Joint liability guarantee | December 15, 2026 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | October 14, 2022 | 436.89 | Joint liability guarantee | December 15, 2026 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | September 26, 2023 | 872 | Joint liability guarantee | December 15, 2026 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | November 15, 2024 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 15, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | November 17, 2025 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 15, 2026 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | November 16, 2026 | No | Yes |
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 17, 2027 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | November 15, 2027 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 15, 2028 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | November 15, 2028 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 15, 2029 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | November 15, 2029 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 15, 2030 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | November 15, 2030 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 15, 2031 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | November 16, 2031 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 17, 2032 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 06, 2022 | 2,514.64 | Joint liability guarantee | May 16, 2033 | No | Yes | ||
| Yongsheng Technology | December 14, 2022 | 5,380,000 | June 12, 2023 | 5,000 | Joint liability guarantee | June 03, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 31, 2018 | 255,000 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 10, 2018 | 90,574.47 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 18, 2019 | 57,375 | Joint liability guarantee | July 30, 2030 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | August 03, 2018 | 11,060.88 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 08, 2018 | 16,903.03 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 09, 2018 | 18,158.55 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 09, 2018 | 27,236.81 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 10, 2018 | 4,596.38 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 10, 2018 | 9,078.54 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 13, 2018 | 3,362.43 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 16, 2018 | 31,947.42 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 15, 2018 | 6,726.9 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 31, 2018 | 25,500 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 29, 2018 | 34,560.15 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 23, 2018 | 55,466.84 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 26, 2018 | 10,083.72 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 30, 2018 | 4,707.4 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 31, 2018 | 20,178.66 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 07, 2018 | 6,422.72 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 08, 2018 | 13,113.44 | Joint liability guarantee | July 30, 2030 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | November 08, 2018 | 9,754.26 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 03, 2018 | 4,742.49 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 09, 2018 | 16,004.82 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 01, 2019 | 24,532.53 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 03, 2019 | 16,810.62 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 04, 2019 | 2,689.94 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 09, 2018 | 6,860.52 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 04, 2019 | 11,768.76 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 04, 2019 | 93,840 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 08, 2019 | 6,389.79 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 09, 2019 | 16,798.13 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 10, 2019 | 8,406.05 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 14, 2019 | 4,056.46 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 15, 2019 | 12,109.44 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 30, 2019 | 65,790 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 31, 2019 | 13,453.8 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 30, 2019 | 2,017.46 | Joint liability guarantee | July 30, 2030 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | February 01, 2019 | 11,086.13 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 04, 2019 | 2,692.29 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 01, 2019 | 7,061.97 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 01, 2019 | 5,716.12 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 03, 2019 | 23,543.13 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 11, 2019 | 3,042.34 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 12, 2019 | 4,369.68 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 11, 2019 | 17,925.48 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 27, 2019 | 46,920 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 01, 2019 | 7,726.5 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 01, 2019 | 3,021.75 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 07, 2019 | 4,706.79 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 07, 2019 | 11,768.76 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 08, 2019 | 1,344.97 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 08, 2019 | 4,034.91 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 12, 2019 | 3,027.36 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 13, 2019 | 2,028.23 | Joint liability guarantee | July 30, 2030 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | March 15, 2019 | 16,481.16 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 29, 2019 | 18,360 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 08, 2019 | 3,359.63 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 10, 2019 | 672.49 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 11, 2019 | 1,345.18 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 07, 2019 | 2,014.5 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 11, 2019 | 2,355.18 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 12, 2019 | 5,719.65 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 12, 2019 | 676.08 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 12, 2019 | 4,706.79 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 15, 2019 | 1,681.21 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 01, 2019 | 7,391.43 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 11, 2019 | 1,007.25 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 07, 2019 | 3,765.33 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 07, 2019 | 17,340 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 07, 2019 | 7,397.04 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 09, 2019 | 3,026.18 | Joint liability guarantee | July 30, 2030 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | May 10, 2019 | 1,008.73 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 13, 2019 | 1,690.19 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 13, 2019 | 2353.55 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 16, 2019 | 10,761.51 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 30, 2019 | 51,000 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 01, 2019 | 4,034.61 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 04, 2019 | 11,768.47 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 07, 2019 | 1,611.6 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 05, 2019 | 6,726.9 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 05, 2019 | 8,404.9 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 06, 2019 | 4,034.92 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 06, 2019 | 35,700 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 06, 2019 | 3,380.38 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 12, 2019 | 20,178.66 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 20, 2019 | 337.11 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 01, 2019 | 51,000 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 05, 2019 | 3,698.66 | Joint liability guarantee | July 30, 2030 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | July 08, 2019 | 1,344.97 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 08, 2019 | 1,7850 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 10, 2019 | 13,453.8 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 10, 2019 | 4,394.5 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 10, 2019 | 3,027.36 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 05, 2019 | 1,679.43 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 10, 2019 | 2,355.18 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 11, 2019 | 1,007.25 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 16, 2019 | 3,359.63 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 16, 2019 | 6,049.62 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 31, 2019 | 36,989.28 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 02, 2019 | 6,724.84 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 07, 2019 | 3,380.38 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 07, 2019 | 8,240.58 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 07, 2019 | 5,041.86 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 23, 2019 | 3,360.9 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 23, 2019 | 2,696.88 | Joint liability guarantee | July 30, 2030 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | September 29, 2019 | 44,370 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 30, 2019 | 10,089.33 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 07, 2019 | 3,533.79 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 09, 2019 | 3,528.18 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 21, 2019 | 9,754.26 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 21, 2019 | 6,382.14 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 29, 2019 | 26,520 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 15, 2019 | 8,411.94 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 09, 2019 | 1,513.68 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 18, 2019 | 2,825.91 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 19, 2019 | 1,208.7 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 21, 2019 | 74,970 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | December 18, 2019 | 2,757.06 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | December 19, 2019 | 4,706.79 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | December 24, 2019 | 5,047.47 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 16, 2020 | 6,389.79 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 16, 2020 | 3,699.54 | Joint liability guarantee | July 30, 2030 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | January 16, 2020 | 2,050.2 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 16, 2020 | 9,754.26 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 16, 2020 | 1,984.41 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 14, 2020 | 2,352.17 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 18, 2020 | 677.79 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 16, 2020 | 4,369.68 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 19, 2020 | 6,726.9 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 31, 2020 | 10,200 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 01, 2020 | 16,575 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 17, 2020 | 1,679.43 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 17, 2020 | 2,355.18 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 13, 2020 | 2,040 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 03, 2020 | 4,034.61 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 05, 2020 | 4,034.61 | Joint liability guarantee | July 30, 2030 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 04, 2023 | 23,797.18 | Joint liability guarantee | March 15, 2027 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 20, 2021 | 77,760 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 20, 2021 | 288,000 | Joint liability guarantee | November 15, 2032 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | January 20, 2021 | 126,144 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 20, 2021 | 24,998.4 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 20, 2021 | 8,640 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 21, 2021 | 32,832 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 21, 2021 | 57,600 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 21, 2021 | 57,600 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 21, 2021 | 11,520 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 22, 2021 | 32,832 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 04, 2021 | 54,720 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 05, 2021 | 43,200 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 05, 2021 | 57,600 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 05, 2021 | 106,560 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 05, 2021 | 65,664 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 07, 2021 | 32,832 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 18, 2021 | 12,096 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 18, 2021 | 20,528.64 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 22, 2021 | 57,600 | Joint liability guarantee | November 15, 2032 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | March 22, 2021 | 57,600 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 25, 2021 | 28,800 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 26, 2021 | 144,000 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 26, 2021 | 46,080 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 28, 2021 | 74,880 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 28, 2021 | 35,712 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 28, 2021 | 28,800 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 28, 2021 | 17,856 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 29, 2021 | 46,080 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 30, 2021 | 2,880 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 30, 2021 | 2,880 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 06, 2021 | 23,040 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 06, 2021 | 40,320 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 06, 2021 | 83,520 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 06, 2021 | 83,520 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 06, 2021 | 86,400 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 06, 2021 | 172,800 | Joint liability guarantee | November 15, 2032 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | July 06, 2021 | 23,040 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 15, 2021 | 58,152.96 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 17, 2021 | 22,464 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 17, 2021 | 46,080 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 17, 2021 | 118,080 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 22, 2021 | 19,008 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 11, 2022 | 195.84 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 02, 2022 | 126.72 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 04, 2022 | 218.88 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 09, 2022 | 69.12 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | August 10, 2022 | 8.64 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 05, 2022 | 296.64 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 10, 2022 | 236.16 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 01, 2022 | 253.44 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | December 16, 2022 | 40.32 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 20, 2021 | 22,752 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 05, 2021 | 40,320 | Joint liability guarantee | November 15, 2032 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | March 19, 2021 | 28,800 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 28, 2021 | 17,280 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 05, 2021 | 28,800 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 17, 2021 | 23,040 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 13, 2022 | 9,216 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | December 27, 2022 | 4,608 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 20, 2021 | 86,400 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | February 05, 2021 | 17,280 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | March 19, 2021 | 34,560 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 29, 2021 | 57,600 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 05, 2021 | 190,080 | Joint liability guarantee | November 15, 2032 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | July 29, 2021 | 1,508.02 | Joint liability guarantee | July 15, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 07, 2021 | 4.66 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 18, 2021 | 161.49 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 22, 2021 | 39.95 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 02, 2021 | 9.12 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | November 18, 2021 | 0.4 | Joint liability guarantee | January 01, 2024 | No | Yes |
| ZPC | December 14, 2022 | 6,260,000 | November 26, 2021 | 299.22 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | December 03, 2021 | 39.61 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | December 24, 2021 | 10.02 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | January 21, 2022 | 122.6 | Joint liability guarantee | April 20, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | April 28, 2022 | 33.01 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | May 17, 2022 | 61.3 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 05, 2022 | 449.84 | Joint liability guarantee | January 31, 2026 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | September 08, 2022 | 3,003.89 | Joint liability guarantee | January 31, 2025 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | October 12, 2022 | 58.94 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| ZPC | December 14, 2022 | 6,260,000 | June 06, 2019 | 1,080.21 | Joint liability guarantee | January 01, 2024 | No | Yes | ||
| Total limits of guarantees to subsidiaries approved at the end of the reporting period (B3) | 11,640,000 | Total balance of guarantees actually provided to subsidiaries at the end of the reporting period (B4) | 6,078,373.8 | |||||||
| Guarantees of the subsidiaries to their subsidiaries | ||||||||||
| Name of guaranteed party | Date of disclosure of announcement relating to guarantee amount | Guarantee amount | Date of actual occurrence | Amount of actual guarantee | Type of guarantee | Collateral (if any) | Counter-guarantees (if any) | Period of guarantee | Completed or not | Related party guarantee or not |
| Yisheng Dahua | December 24, 2022 | 162,000 | November 23, 2023 | 4.48 | Joint liability guarantee | May 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 21, 2023 | 30.85 | Joint liability guarantee | June 21, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, | 162,000 | December 21, | 83.47 | Joint liability | June 21, | No | Yes | ||
| 2022 | 2023 | guarantee | 2024 | |||||||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 21, 2023 | 86.26 | Joint liability guarantee | June 21, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 21, 2023 | 149.99 | Joint liability guarantee | June 21, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 21, 2023 | 24 | Joint liability guarantee | June 21, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 121.06 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 241.67 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 181.29 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 8.47 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 274.98 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 359.35 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 38.34 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 48 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 48 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 48 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 48 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | December 26, 2023 | 37.15 | Joint liability guarantee | June 26, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 16, 2023 | 42 | Joint liability guarantee | February 16, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, | 162,000 | August 16, 2023 | 42 | Joint liability | February 16, | No | Yes |
| 2022 | guarantee | 2024 | ||||||||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 16, 2023 | 30.23 | Joint liability guarantee | February 16, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 16, 2023 | 43.56 | Joint liability guarantee | February 16, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 16, 2023 | 203.84 | Joint liability guarantee | February 16, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 16, 2023 | 62.31 | Joint liability guarantee | February 16, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 16, 2023 | 190.39 | Joint liability guarantee | February 16, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 16, 2023 | 31.84 | Joint liability guarantee | February 16, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 6.03 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 70.01 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 289.35 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 139.66 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 115.91 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 14.47 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 179.14 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 31.13 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 140 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | August 23, 2023 | 140 | Joint liability guarantee | February 23, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, | 162,000 | August 23, 2023 | 140 | Joint liability | February 23, | No | Yes |
| 2022 | guarantee | 2024 | ||||||||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 01, 2023 | 1,839.4 | Joint liability guarantee | March 01, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 01, 2023 | 3,239.4 | Joint liability guarantee | March 01, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 05, 2023 | 13.5 | Joint liability guarantee | March 05, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 05, 2023 | 202.94 | Joint liability guarantee | March 05, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 05, 2023 | 274.15 | Joint liability guarantee | March 05, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 05, 2023 | 97.16 | Joint liability guarantee | March 05, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 07, 2023 | 140 | Joint liability guarantee | March 07, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 07, 2023 | 140 | Joint liability guarantee | March 07, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 07, 2023 | 140 | Joint liability guarantee | March 07, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 07, 2023 | 140 | Joint liability guarantee | March 07, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 07, 2023 | 140 | Joint liability guarantee | March 07, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 07, 2023 | 140 | Joint liability guarantee | March 07, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 14, 2023 | 140 | Joint liability guarantee | March 14, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 14, 2023 | 140 | Joint liability guarantee | March 14, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 14, 2023 | 140 | Joint liability guarantee | March 14, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 20, 2023 | 140 | Joint liability guarantee | March 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, | 162,000 | September 20, | 140 | Joint liability | March 20, | No | Yes |
| 2022 | 2023 | guarantee | 2024 | |||||||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 20, 2023 | 140 | Joint liability guarantee | March 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 20, 2023 | 140 | Joint liability guarantee | March 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 22, 2023 | 66.58 | Joint liability guarantee | March 22, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 22, 2023 | 167.49 | Joint liability guarantee | March 22, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 22, 2023 | 318.31 | Joint liability guarantee | March 22, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 22, 2023 | 239.79 | Joint liability guarantee | March 22, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 22, 2023 | 14.07 | Joint liability guarantee | March 22, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 22, 2023 | 106.86 | Joint liability guarantee | March 22, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 22, 2023 | 7.29 | Joint liability guarantee | March 22, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 08, 2023 | 13.5 | Joint liability guarantee | April 08, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 08, 2023 | 212.56 | Joint liability guarantee | April 08, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 08, 2023 | 95.26 | Joint liability guarantee | April 08, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 08, 2023 | 36.53 | Joint liability guarantee | April 08, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 08, 2023 | 92.8 | Joint liability guarantee | April 08, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 08, 2023 | 87.37 | Joint liability guarantee | April 08, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 08, 2023 | 155.23 | Joint liability guarantee | April 08, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, | 162,000 | October 12, 2023 | 2660 | Joint liability | April 12, | No | Yes |
| 2022 | guarantee | 2024 | ||||||||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 12, 2023 | 3,433.89 | Joint liability guarantee | April 12, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 17, 2023 | 140 | Joint liability guarantee | April 17, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 17, 2023 | 140 | Joint liability guarantee | April 17, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 17, 2023 | 140 | Joint liability guarantee | April 17, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 17, 2023 | 140 | Joint liability guarantee | April 17, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 17, 2023 | 140 | Joint liability guarantee | April 17, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 37.44 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 90.4 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 118.19 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 154.48 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 177.19 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 6.08 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 7.36 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 97.14 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 283.68 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 53.85 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, | 162,000 | October 24, 2023 | 66.27 | Joint liability | April 24, | No | Yes |
| 2022 | guarantee | 2024 | ||||||||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 24, 2023 | 74.56 | Joint liability guarantee | April 24, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 140 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 140 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 140 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 140 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 71.26 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 42 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 42 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 42 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 42 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 29.87 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | October 25, 2023 | 25.05 | Joint liability guarantee | April 25, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 06, 2023 | 88.64 | Joint liability guarantee | May 06, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 06, 2023 | 60.26 | Joint liability guarantee | May 06, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 06, 2023 | 31.75 | Joint liability guarantee | May 06, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 06, 2023 | 6.13 | Joint liability guarantee | May 06, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, | 162,000 | November 06, | 33.14 | Joint liability | May 06, | No | Yes |
| 2022 | 2023 | guarantee | 2024 | |||||||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 09, 2023 | 140 | Joint liability guarantee | May 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 16, 2023 | 2,100 | Joint liability guarantee | February 16, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 16, 2023 | 1,554 | Joint liability guarantee | February 16, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 17, 2023 | 3,096.72 | Joint liability guarantee | May 17, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 21.04 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 31.81 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 6.13 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, | 162,000 | November 20, | 157.25 | Joint liability | May 20, | No | Yes |
| 2022 | 2023 | guarantee | 2024 | |||||||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 177.19 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 343.51 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 350 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 180.79 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 398.34 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 136.53 | Joint liability guarantee | May 20, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | September 20, 2023 | 10,000 | Joint liability guarantee | March 18, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 13, 2023 | 3,845.91 | Joint liability guarantee | February 09, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | November 20, 2023 | 2,101.05 | Joint liability guarantee | March 08, 2024 | No | Yes | ||
| Yisheng Dahua | December 24, 2022 | 162,000 | March 31, 2023 | 1,957.6 | Joint liability guarantee | March 25, 2024 | No | Yes | ||
| Total limits of guarantees to subsidiaries approved at the end of the reporting period (C3) | 162,000 | Total balance of guarantees actually provided to subsidiaries at the end of the reporting period (C4) | 49,737.92 | |||||||
| Total amount of guarantees of the Company (Including the above three mentioned guarantees) | ||||||||||
| Total limits of guarantees approved at the end of the reporting period (A3+B3+C3) | 11,802,000 | Total balance of guarantees actually provided at the end of the reporting period (A4+B4+C4) | 6,128,111.72 | |||||||
| Proportion of total amount of guarantees (i.e. A4+B4+C4) in net assets of the Company | 138.22% | |||||||||
3. Situation of others entrusted for cash asset management
(1) Entrusted asset management
□Applicable ?Not applicable
There was entrust finance during the reporting period.
(2) Entrusted loans
□Applicable ?Not applicable
The Company had no entrusted loans during the reporting period.
4. Other major contracts
□Applicable ?Not applicable
There were no other major contracts during the reporting period.
XVI. Description of other major matters
□Applicable ?Not applicable
No other important events to be described during the reporting period.
XVII. Major Matters of the Company’s Subsidiaries
?Applicable □Not applicable
Ningbo Zhongjin Petrochemical Co., Ltd., a wholly-owned subsidiary of the Company, applied to NingboBranch of China Pacific Property Insurance Co., Ltd. for a tariff guarantee insurance coverage of not more thanRMB 585 million for a guarantee period from March 1, 2024 to March 1, 2025, and the Company will providejoint liability guarantee for it, which is subject to the letter of guarantee signed by both parties.
At the end of June 2023, Zhejiang Petroleum & Chemical Co., Ltd., a subsidiary of the Company, transferredall its 100% equity of Zhoushan Yushan Petrochemical Engineering Co., Ltd. to Zhoushan Green PetrochemicalPark Management Co., Ltd.
Section VII Changes in Shares and ShareholdersI. Changes in Shares
1. Changes in shares
Unit: share
| Before the change | Increase or decrease (+, -) | After this change | |||
| Number | Ratio | Subtotal | Number | Ratio | |
| I. Restricted shares | 627,243,750 | 6.19% | 627,243,750 | 6.19% | |
| 1. State-owned shares | |||||
| 2. Shares held by state-owned legal persons | |||||
| 3. Shares held by other 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. RMB ordinary shares | 9,498,281,250 | 93.81% | 9,498,281,250 | 93.81% | |
| 2. Domestically-listed foreign shares | |||||
| 3. Overseas-listed foreign shares | |||||
| 4. Others | |||||
| III. Total shares | 10,125,525,000 | 100.00% | 10,125,525,000 | 100.00% | |
Reasons for share changes
□Applicable ?Not applicable
Approval of share changes
□Applicable ?Not applicable
Transfers of share changes
□Applicable ?Not applicable
Effect of share changes on financial indicators such as basic and diluted earnings per share and net assets per shareattributable 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
1. Issuance of securities (excluding preferred shares) during the reporting period
□Applicable ?Not applicable
2. Explanation of changes in the total number of shares and shareholder structure of the Company, andchanges in the structure of the Company's assets and liabilities
□Applicable ?Not applicable
3. Existing internal employee shares
□Applicable ?Not applicable
III. Shareholders and Actual Controllers
1. Number and shareholding of the company's shareholders
Unit: share
| Total number of common shareholders at the end of the reporting period | 105,062 | Total number of common shareholders at the end of the last month before the disclosure date of the annual report | 100,234 | Total number of shareholders of preferred shares with restored voting rights at the end of the reporting period (if any) | 0 | Total number of preferred shareholders whose voting rights were restored at the end of last month before the disclosure date of annual report (if any) | 0 | |
| Shareholdings of shareholders holding over 5% of shares or the top 10 shareholders (excluding shares lent through refinancing) | ||||||||
| Name of shareholders | Nature of shareholder | Shareholding ratio | Number of shares held at the end of the report period | Increase and decrease during the reporting period | Number of shares held subject to sales restrictions | Number of shares held without sales restrictions | Pledge, marking or freezing | |
| Status of shares | Number | |||||||
| Zhejiang Rongsheng Holding Group Co., Ltd. | Domestic natural person | 51.46% | 5,210,237,480 | -1,012,552,501 | 0 | 5,210,237,480 | N/A | 0 |
| Aramco Overseas Company B.V. | Foreign legal person | 10.00% | 1,012,552,501 | 1,012,552,501 | 0 | 1,012,552,501 | N/A | 0 |
| Li Shuirong | Domestic natural person | 6.35% | 643,275,000 | 0 | 482,456,250 | 160,818,750 | N/A | 0 |
| Hong Kong Securities Clearing Company Limited | Foreign legal person | 1.45% | 146,790,511 | -13,945,193 | 0 | 146,790,511 | N/A | 0 |
| Li Guoqing | Domestic natural person | 0.95% | 96,525,000 | 0 | 72,393,750 | 24,131,250 | N/A | 0 |
| Xu Yuejuan | Domestic natural person | 0.95% | 96,525,000 | 0 | 0 | 96,525,000 | N/A | 0 |
| Li Yongqing | Domestic natural person | 0.95% | 96,525,000 | 0 | 72,393,750 | 24,131,250 | N/A | 0 |
| Horizon Asset - Huaneng Trust · Jiayue No. 7 Single Fund Trust - Horizon Asset Huixin No. 43 Single Asset | Others | 0.54% | 55,148,287 | -5,800,000 | 0 | 55,148,287 | N/A | 0 |
| Management Plan | |||||||||||
| Huaneng Guicheng Trust Corporation Limited - Huaneng Trust · Rongyue Weicheng Pooled Fund Trust Plan | Others | 0.49% | 50,078,500 | 28,470,000 | 0 | 50,078,500 | N/A | 0 | |||
| Ni Xincai | Domestic natural person | 0.47% | 47,925,000 | 0 | 0 | 47,925,000 | N/A | 0 | |||
| The situation (if any) that strategic investors or general legal persons become the top 10 shareholders due to the placement of new shares (if any) | Rongsheng Holdings, the controlling shareholder of the Company, signed the Share Purchase and Sale Agreement with Aramco Overseas Company B.V. (“AOC”), a wholly-owned subsidiary of Saudi Aramco, a strategic partner on March 27, 2023, and planned to transfer 1,012,552,501 shares of the Company it held to AOC through agreed transfer. On July 20, 2023, both parties obtained the Securities Transfer Registration Confirmation issued by China Securities Depository and Clearing Corporation Limited and completed the transfer. | ||||||||||
| Explanation of the relationship or concerted action among the above shareholders | Among the top 10 shareholders, Zhejiang Rongsheng Holding Group Co., Ltd. is the controlling shareholder 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 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 rights | N/A | ||||||||||
| Special explanation of the existence of a special repurchase account among the top 10 shareholders (if any) | Among the top 10 shareholders, Rongsheng Petrochemical Co., Ltd. repurchased 516,433,122 shares in the special securities account, accounting for 5.10% of the Company’s total share capital. | ||||||||||
| Shareholdings of the top 10 shareholders not subject to sales restrictions | |||||||||||
| Name of shareholders | Number of shares without sales restrictions held at the end of the reporting period | Class of shares | |||||||||
| Class of shares | Number | ||||||||||
| Zhejiang Rongsheng Holding Group Co., Ltd. | 5,210,237,480 | RMB ordinary shares | 5,210,237,480 | ||||||||
| Aramco Overseas Company B.V. | 1,012,552,501 | RMB ordinary shares | 1,012,552,501 | ||||||||
| Li Shuirong | 160,818,750 | RMB ordinary shares | 160,818,750 | ||||||||
| Hong Kong Securities Clearing Company Limited | 146,790,511 | RMB ordinary shares | 146,790,511 | ||||||||
| Xu Yuejuan | 96,525,000 | RMB ordinary shares | 96,525,000 | ||||||||
| Horizon Asset - Huaneng Trust · Jiayue No. 7 Single Fund Trust - Horizon Asset Huixin No. 43 Single Asset Management Plan | 55,148,287 | RMB ordinary shares | 55,148,287 | ||||||||
| Huaneng Guicheng Trust Corporation Limited - Huaneng Trust · Rongyue Weicheng Pooled Fund Trust Plan | 50,078,500 | RMB ordinary shares | 50,078,500 | ||||||||
| Ni Xincai | 47,925,000 | RMB ordinary shares | 47,925,000 |
| Hangzhou Mingzhu Enterprise Management Partnership (Limited Partnership) | 39,838,466 | RMB ordinary shares | 39,838,466 |
| Penghua Fund - China Life Insurance Co., Ltd. - Participating Insurance - Penghua Fund State Life Stock Growth Equity Portfolio Single Asset Management Plan (Available for Sale) | 36,595,081 | RMB ordinary shares | 36,595,081 |
| Explanation of the relationship or concerted action among the top 10 shareholders of outstanding shares without sales restrictions and among the top 10 shareholders of outstanding shares without sales restrictions and the top 10 shareholders | Among the top 10 shareholders, Zhejiang Rongsheng Holding Group Co., Ltd. is the controlling shareholder of the Company, Xu Yuejuan is sister-in-law of Li Shuirong, Chairman of the Board of Directors of Zhejiang Rongsheng Holding Group Co., Ltd., and Ni Xincai is the brother-in-law of Li Shuirong, forming associated relationships. In addition to the above associated relationships, the Company has no knowledge of whether other shareholders are related to each other or act in concert. | ||
| Explanation of the top 10 ordinary shareholders’ participation in securities margin trading (if any) | Zhejiang Rongsheng Holding Group Co., Ltd. holds 5,180,237,480 shares through an ordinary account and 30,000,000 shares through a credit account. | ||
Participation of the top ten shareholders in lending shares by refinancing business
□Applicable ?Not applicable
The top ten shareholders have changed from the previous period?Applicable □Not applicable
Unit: share
| Changes in the top ten shareholders compared with the end of the previous period | |||
| Name of shareholder (full name) | Add/Exit in this reporting period | Number of shares lent by refinancing at the end of the period and not yet returned | |
Number of shares held by shareholders in generalaccount and credit account and lent by refinancing at
the end of the period and not returned
| Total | Proportion to total share capital | Total | Proportion to total share capital | ||
| Aramco Overseas Company B.V. | Add | 0 | 0.00% | 1,012,552,501 | 10.00% |
| Huaneng Guicheng Trust Corporation Limited - Huaneng Trust · Rongyue Weicheng Pooled Fund Trust Plan | Add | 0 | 0.00% | 50,078,500 | 0.49% |
| China Construction Bank Co., Ltd. - GF Technology Pioneer Hybrid Securities Investment Fund | Exit | 0 | 0.00% | 0 | 0.00% |
| Shanghai Pudong Development Bank Co., Ltd - Guangfa High-end Manufacturing Equity Initiating Securities Investment Fund | Exit | 0 | 0.00% | 0 | 0.00% |
Whether any of the top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares notsubject to sales restrictions of the Company have any agreed repurchase trading during the reporting period
□Yes ?No
The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares not subject to salesrestrictions did not conduct the agreed repurchase transaction during the reporting period
2. Controlling shareholders of the Company
Nature of controlling shareholder: natural person holdingType of controlling shareholder: legal person
| Name of controlling shareholder | Legal representative/person-in-charge | Date of establishment | Organization code | Main business |
| Zhejiang Rongsheng Holding Group Co., Ltd. | Li Shuirong | September 13, 2006 | 9133000079338631XM | Industrial investment, enterprise management consulting, indoor and outdoor building decoration, sales of chemical raw materials and products (excluding dangerous chemicals and easily made drugs), precious metals (excluding those under special control), gold products, coal (no storage), metal materials and products, steel, building materials, light textile raw materials and products, fuel oil (excluding finished oil), photovoltaic products, cement and products, wood and products, hardware and electrical appliances and daily necessities, computer software development, information consulting services, and import and export business. (Except for projects prohibited or restricted by national laws and regulations). (Any project that needs to be approved by law can only be carried out after getting approval by relevant authorities.) |
| Equity of other domestic and overseas listed companies in which controlling shareholders have controlled and held shares during the reporting period | Zhejiang Rongsheng Holding Group Co., Ltd. has held 51.46% of shares of the Company and 29.08% of shares of Ningbo United Group Co., Ltd., respectively as their de facto controller. | |||
Changes in controlling shareholders during the reporting period
□Applicable ?Not applicable
There were no changes in controlling shareholders during the reporting period.
3. Actual controllers and persons acting in concert with the Company
Nature of actual controller: domestic natural personType of actual controller: natural person
| Name of the actual controller | Relationship with actual controller | Nationality | Obtaining the right of residence in other countries or regions or not |
| Li Shuirong | Same person | China | No |
| Main occupation and position | Chairman of the Board of Directors of Zhejiang Rongsheng Holding Group Co., Ltd., Chairman of Ningbo United Group Co., Ltd., and Chairman of the Company. | ||
| Domestic and foreign listed companies under his control in the past 10 | As of the end of the reporting period, Mr. Li has held 63.523% of the shares of Zhejiang Rongsheng Holding Group Co., Ltd. as its actual controller. Zhejiang Rongsheng Holding Group Co., Ltd. has held 51.46% of shares of the Company and 29.08% of shares of Ningbo United Group Co., Ltd., | ||
| years | respectively as their de facto controller. Zhejiang Rongsheng Holding Group Co., Ltd. has held 51.46% of shares of the Company and 29.08% of shares of Ningbo United Group Co., Ltd., respectively as their de facto controller. |
Changes in actual controllers during the reporting period
□Applicable ?Not applicable
There were no changes in actual controllers during the reporting period.Block diagram for the property and control relations between the Company and its actual controller
Block diagram for the property and control relations between the Company and its actual controller
□Applicable ?Not applicable
4. The cumulative number of shares pledged by the controlling shareholder or the first largestshareholder of the Company and persons acting in concert with the Company reaches 80% of thenumber of shares held.
□Applicable ?Not applicable
5. Other legal shareholders holding more than 10 % of the shares
?Applicable □Not applicable
| Name of corporate shareholder | Legal representative/person-in-charge | Date of establishment | Registered capital | Main business or management activities |
| Aramco Overseas Company B.V. | Mazin Mohammed M Dabbagh | Date | EUR 17,907,127,251 | Service providers, internal banks and holding companies are mainly responsible for Saudi Aramco's procurement and other services. |
6. Restricted reduction of shares by controlling shareholders, actual controllers, restructuring parties andother committed subjects?Applicable □Not applicable
Rongsheng Holdings, the controlling shareholder of the Company, signed the Share Purchase and Sale
Li ShuirongZhejiang Rongsheng Holding
Group Co., Ltd.
Zhejiang Rongsheng Holding
Group Co., Ltd.Rongsheng Petrochemical
Co., Ltd.
Rongsheng Petrochemical
Co., Ltd.
63.523%
63.523%
51.46%
51.46%
6.35%
Agreement with Aramco Overseas Company B.V, a wholly-owned subsidiary of Saudi Aramco, a strategic partneron March 27, 2023, and planned to transfer 1,012,552,501 shares of the Company it held to AOC through agreedtransfer. On July 20, 2023, both parties obtained the Securities Transfer Registration Confirmation issued byChina Securities Depository and Clearing Corporation Limited and completed the transfer.IV. Specific implementation of share repurchase during the reporting periodProgress of implementation of share buybacks?Applicable □Not applicable
| Disclosure time of the scheme | Number of shares to be repurchased (shares) | Proportion to total share capital | Proposed repurchase amount (RMB 10,000) | Proposed repurchase period | Repurchase purpose | Number of shares repurchased (shares) | Proportion of the number of shares repurchased to the underlying shares involved in the equity incentive plan (if any) |
| March 16, 2022 | 45,454,500 shares -90,909,100 shares (all inclusive) | 0.45%-0.90% | RMB 1 billion (inclusive) and not more than RMB 2 billion (inclusive) | Within 12 months from the date of approval of this repurchase plan by the board of directors | Convertible corporate bonds issued by listed companies for conversion into stocks | 136,082,746 | 0.00% |
| August 05, 2022 | 50 million shares-100 million shares (both inclusive) | 0.4938%—0.9876% | RMB 1 billion (inclusive) and not more than RMB 2 billion (inclusive) | Within 12 months from the date of approval of this repurchase plan by the board of directors | Convertible corporate bonds or employee stock ownership plans issued by listed companies for conversion into stocks | 147,862,706 | 0.00% |
| August 22, 2023 | 83,333,333 shares-166,666,667 shares (both inclusive) | 0.8230%—1.6460% | RMB 1.5 billion (inclusive) - RMB 3 billion (inclusive) | Within 12 months from the date of approval of this repurchase plan by the board of directors | Convertible corporate bonds or employee stock ownership plans issued by listed companies for conversion into stocks | 232,487,670 | 0.00% |
Implementation progress of reducing repurchased shares by centralized competitive bidding
□Applicable ?Not applicable
Section VIII Preferred Shares
□Applicable ?Not applicable
The Company had no preferred shares during the reporting period.
Section IX Bonds?Applicable □Not applicableI. Enterprise Bonds
□Applicable ?Not applicable
The Company had no corporate bonds during the reporting period.
II. Corporate Bonds
?Applicable □Not applicable
1. Basic information of corporate bonds
Unit：RMB 10,000
| Name of bond | Bond abbreviation | Bond code | Issue date | Value date | Maturity date | Bond balance | Interest rate | Mode of repayment of principal and interest | Trading venue |
| 2020 Public Offering of Green Corporate Bonds to Eligible Investors by Rongsheng Petrochemical Co., Ltd. (Grade 1) | 20 Rongsheng G1 | 149087.SZ | April 20, 2020 | April 22, 2020 | April 22, 2024 | 100,000 | 3.86% |
The interest shall beaccrued per year ona simple interestbasis, instead ofcompound interest.The interest shall bepaid once a year,and the last interestshall be paidtogether with theprincipal.
| Shenzhen Stock Exchange | |||||||||
| 2020 Public Offering of Green Corporate Bonds to Eligible Investors by Rongsheng Petrochemical Co., Ltd. (Grade 2) | 20 Rongsheng G2 | 149220.SZ | August 28, 2020 | September 02, 2020 | September 02, 2024 | 100,000 | 3.45% |
The interest shall beaccrued per year ona simple interestbasis, instead ofcompound interest.The interest shall bepaid once a year,and the last interestshall be paidtogether with theprincipal.
| Shenzhen Stock Exchange | ||
| Investor suitability arrangements (if any) | Qualified institutional investor | |
| Applicable transaction mechanism | Competitive price transaction | |
| Any risk of termination of listing and trading (if any) or not and countermeasures | None | |
Overdue bonds
□Applicable ?Not applicable
2. Trigger and implementation of issuer or investor option clauses and investor protection clauses?Applicable □Not applicable
| Name of bond | Bond abbreviation | Type of clause covered under the bond | Option clause | Implementation of investor protection clause |
| 2020 Public Offering of Green Corporate Bonds to Eligible Investors by Rongsheng Petrochemical Co., Ltd. (Grade 1) | 20 Rongsheng G1 | Option to adjust coupon rate, put-back option and accelerated settlement clause | During the reporting period, there was no need to implement the option clause. | The implementation conditions for the above clause of investor protection have not been triggered during the reporting period |
| 2020 Public Offering of Green Corporate Bonds to Eligible Investors by Rongsheng Petrochemical Co., Ltd. (Grade 2) | 20 Rongsheng G2 | Option to adjust coupon rate, put-back option and accelerated settlement clause | During the reporting period, there was no need to implement the option clause. | The implementation conditions for the above clause of investor protection have not been triggered during the reporting period |
3. Intermediaries
| Name of bond projects | Name of intermediaries | Office address | Name of signing accountants | Contacts of intermediaries | Contact number |
| 20 Rongsheng G1 and 20 Rongsheng G2 | Pan-China Certified Public Accountants (Special General Partnership) | Tower B, China Resources Building, No.1366, Qianjiang Road, Shengcheng District, Hangzhou | Yu Jianan, Xu Xiaofeng, Xu Haihong, Xu Cheng | Zheng Qihua | 0571-88216888 |
Whether the institutions above change during the reporting period
□Yes ?No
4. Use of the raised funds
Unit：RMB 10,000
| Name of bond projects | Total amount of raised funds | Used amount | Unused amount | Operation of a special account for raised funds (if any) | Rectification of illegal use of raised funds (if any) | Consistent with the purpose, use plan and other agreements promised in the prospectus or not |
| 20 Rongsheng G1 | 100,000 | 100,000 | 0 | Normal | None | Yes |
| 20 Rongsheng G2 | 100,000 | 100,000 | 0 | Normal | None | Yes |
Raise funds for construction projects?Applicable □Not applicable
As of the end of June 2020, the net funds raised by the bond "20 Rongsheng G1" had been used for theconstruction of the refining-chemical integration project (40 million tons per year) of ZPC and to supplementthe working capital of the Company, and the raised funds had been used up. The use of funds raised by the bond"20 Rongsheng G1" was consistent with the relevant commitments in the prospectus.
As of the end of 2020, the net funds raised by the bond "20 Rongsheng G2" had been used for theconstruction of the refining-chemical integration project (40 million tons per year) of ZPC and to supplementthe working capital of the Company, and the raised funds had been used up. The use of funds raised by the bond"20 Rongsheng G2" was consistent with the relevant commitments in the prospectus.Changes in the use of funds raised from the above bonds of the Company during the reporting period
□Applicable ?Not applicable
5. Adjustment of credit rating results during the reporting period
□Applicable ?Not applicable
6. Implementation and changes of guarantee, debt repayment plan and other debt repayment securitymeasures during the reporting period and the impact on interests of bond investors
□Applicable ?Not applicable
III. Debt financing instruments of non-financial enterprises
□Applicable ?Not applicable
During the reporting period, the Company did not have any debt financing instruments of non-financialenterprises.
IV. Convertible corporate bonds
□Applicable ?Not applicable
The Company had no convertible bonds during the reporting period.V. Loss within the scope of the Consolidated Financial Statements during the reportingperiod of the Company exceeding 10% of the net assets at the end of last year
□Applicable ?Not applicable
VI. Overdue situation of interest-bearing debts other than bonds at the end of the reportingperiod
□Applicable ?Not applicable
VII. Any violations of rules and regulations during the reporting period
□Yes ?No
VIII. Key Accounting Data and Financial Indicators of the Company in Recent Two Yearsas of the End of the Reporting Period
Unit：RMB 10,000
| Item | End of the reporting period | End of last year | Increase or decrease at the end of the reporting period over the end of the previous year |
| Current ratio | 59.67% | 73.60% | -18.93% |
| Liability-asset ratio | 74.75% | 73.20% | 1.55% |
| Quick ratio | 14.90% | 23.07% | -35.41% |
| Current reporting period | Same period last year | Increase/decrease in the current reporting period over the same period last year | |
| Net profit net of non-recurring gain and loss | 82,009.29 | 201,216.42 | -59.24% |
| EBITDA total debt ratio | 11.52% | 11.69% | -0.17% |
| Interest coverage ratio | 1.06 | 1.35 | -21.48% |
| Cash interest coverage ratio | 4.51 | 4.18 | 7.89% |
| EBITDA interest coverage ratio | 2.81 | 2.85 | 1.40% |
| Loan repayment rate | 100.00% | 100.00% | 0.00% |
| Interest cover ratio | 100.00% | 100.00% | 0.00% |
Section X Financial ReportsI. Audit Report
| Type of audit opinion | Standard unqualified opinion |
| Audit Report Signing Date | April 24, 2024 |
| Name of auditor | Pan-China Certified Public Accountants (Special General Partnership) |
| Audit Report No. | 2024 (4366) |
| Name of certified public accountants | Jia Chuan, Xu Haihong |
Text of Audit ReportI. Audit OpinionWe have audited the financial statements of Rongsheng Petrochemical Co., Ltd. (the “Company”), whichcomprise the consolidated and parent company balance sheets as at December 31, 2023, the consolidated andparent company income statements, consolidated and parent company cash flow statements, and consolidated andparent company statements of changes in equity for the year then ended, as well as notes to financial statements.In our opinion, the accompanying financial statements present fairly, in all material respects, the financialposition of the Company as at December 31, 2023, and its financial performance and its cash flows for the yearthen ended in accordance with China Accounting Standards for Business Enterprises.
II. Basis for Audit OpinionWe conducted our audit in accordance with China Standards on Auditing. Our responsibilities under thosestandards are further described in the Certified Public Accountant’s Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the Company in accordance with the China Code ofEthics for Certified Public Accountants, and we have fulfilled other ethical responsibilities. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in our auditof the financial statements of the current period. These matters were addressed in the context of our audit of thefinancial statements as a whole, and in forming our opinion thereon, and we do not express a separate opinion onthese matters.(I) Revenue recognition
1. Description of matters
Please refer to section III (XXIV) and V (II) 1 of notes to the financial statements for details.The operating income of Rongsheng Petrochemical Company mainly comes from the sales of refineryproducts, chemical products, PTA, polyester chips, polyester yarns, polyester films, etc. In 2023, the operatingrevenue amounted to 325,111.61 million yuan. According to the sales contract entered into between the Companyand its customers, revenue from sales of goods is recognized when the customer has obtained the control overrelated goods.
As operating revenue is one of the key performance indicators of the Company, there might be inherent risksthat the Company’s management (the “Management”) adopts inappropriate revenue recognition to achievespecific goals or expectations, we have identified revenue recognition as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for revenue recognition are as follows:
(1) We obtained understandings of key internal controls related to revenue recognition, assessed the design ofthese controls, determined whether they had been executed, and tested the effectiveness of the operation;
(2) We checked sales contracts, obtained understandings of main contractual terms or conditions, confirmedthe transaction essence of the related businesses in combination with their background, and assessed whether therevenue recognition method was appropriate;
(3) We performed analysis procedure on operating revenue and gross margin by month, product, customer,etc., so as to identify whether there are significant or abnormal fluctuations and find out the reason;
(4) For revenue from domestic sales, we checked supporting documents related to revenue recognition bysampling method, including sales contracts, orders, sales invoices, outbound delivery orders, logistics records,delivery receipts, etc.; for revenue from overseas sales, we obtained information from Electron Port and checked itwith accounting records, and checked supporting documents including sales contracts, bills of clearance, waybills,sales invoices, delivery and shipping records, etc. by sampling method;
(5) We performed confirmation procedures on sales amount of major customers by sampling method incombination with confirmation procedure of accounts receivable;
(6) We performed cut-off tests to check whether the revenue was recognized in the appropriate period;
(7) We obtained sales return records subsequent to the balance sheet date and checked whether there wasrevenue not eligible for recognition at the balance sheet date; and
(8) We checked whether information related to operating revenue had been presented appropriately in thefinancial statements.
(II) Measurement of fixed assets and construction in progress
1. Description of matters
Please refer to section III (XVI), III (XVII), III (XVIIII) and V (I) 11 and 12 of notes to the financialstatements for details.
As of December 31, 2023, the book balance of fixed assets presented in the financial statements of theCompany amounted to 219,699.68 million yuan, which mainly refer to machinery used for production of refining-chemical products, etc. and corresponding plants. Such assets are accounted for as fixed assets when they reachthe designed usable conditions, with depreciation made using the straight-line method over their estimated usefullives.
As of December 31, 2023, the book balance of construction in progress presented in the financial statementsof the Company amounted to 41,820.67 million yuan, which mainly refers to 1.40 million tons of ethylene, as wellas downstream chemical plant installations, public works and supporting facilities, etc. Such construction inprogress is measured at actual cost, which include construction costs, installation costs, borrowing costs eligiblefor capitalization and other necessary expenditures incurred to bring the construction in progress to its designedusable conditions, including expenditures on engineering design, supervision, cost consultancy, etc.
The judgments made by the Management would have an impact on the carrying amount of fixed assets andconstruction in progress, as well as deprecation policy for fixed assets, which includes: determination ofexpenditures eligible for capitalization, time point of transferring the construction in progress into fixed assets andstarting deprecation, estimation of the economic useful life and the residual value of corresponding fixed assets.
As the assessment of carrying amount of fixed assets and construction in progress involves significantjudgment of the Management, and may have significant impact on the consolidated financial statements, we haveidentified measurement and recognition of fixed assets and construction in progress as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for measurement of fixed assets and construction in progress are as follows:
(1) We obtained understandings of key internal controls related to measurement of fixed assets andconstruction in progress, assessed the design of these controls, determined whether they had been executed, andtested the effectiveness of the operation;
(2) We checked newly increased construction in progress by sampling method, confirmed whether they wereeligible for capitalization, spot checked construction and installation costs with significant amount increased in thecurrent period, checked related construction contracts, and cross checked the actual amount paid with invoices andpayment vouchers;
(3) We obtained loan contracts and reviewed the accuracy and completeness of recognition of capitalizedinterest in combination with the inputs into construction in progress;
(4) We conducted on-site observation on engineering construction to obtain an understanding of and assessthe progress of engineering, so as to confirm whether there are significant differences between the observationresults and the Company’s accounting records;
(5) We confirmed the time point of transferring construction in progress to fixed assets, checked the accuracyof the time point in combination with on-site observation and fixed assets acceptance reports;
(6) We assessed the reasonableness of depreciation method of fixed assets to further review thereasonableness of accrued depreciations; and
(7) We checked whether information related to fixed assets and construction in progress had been presentedappropriately in the financial statements.
IV. Other Information
Management is responsible for the other information. The other information comprises the informationincluded in the Company’s annual report, but does not include the financial statements and our auditor’s reportthereon.
Our opinion on the financial statements does not cover the other information and we do not express any formof assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of the otherinformation, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and Those Charged with Governance for the FinancialStatements
The Management is responsible for preparing and presenting fairly the financial statements in accordancewith China Accounting Standards for Business Enterprises, as well as designing, implementing and maintaininginternal control relevant to the preparation of financial statements that are free from material misstatement,whether due to fraud or error.
In preparing the financial statements, the Management is responsible for assessing the Company’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting unless the Management either intends to liquidate the Company or to cease operations,or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with China Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, theycould reasonably be expected to influence the economic decisions of users taken on the basis of these financialstatements.
We exercise professional judgment and maintain professional skepticism throughout the audit performed inaccordance with China Standards on Auditing. We also:
(I) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.
(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances.
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimatesand related disclosures made by the Management.
(IV) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting andbased on the audit evidence obtained, whether a material uncertainty exists related to events or conditions thatmay cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may causethe Company to cease to continue as a going concern.
(V) Evaluate the overall presentation, structure and content of the financial statements, and whether thefinancial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities orbusiness activities within the Company to express an opinion on the financial statements. We are responsible forthe direction, supervision and performance of the group audit. We remain sole responsibility for our audit opinion.
We communicate with those charged with governance regarding the planned audit scope, time schedule andsignificant audit findings, including any deficiencies in internal control of concern that we identify during ouraudit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that wereof most significance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.II. Financial StatementsThe financial statement notes are represented in RMB.
1. Consolidated balance sheet
Prepared by: Rongsheng Petrochemical Co., Ltd.
December 31, 2023
Unit: RMB
| Item | December 31, 2023 | January 01, 2023 |
| Current assets: | ||
| Cash and bank balances | 13,070,255,466.02 | 18,238,774,380.21 |
| Settlement funds | ||
| Loans to other banks | ||
| Held-for-trading financial assets | 310,087,429.45 | 188,283,362.49 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 4,737,733,703.66 | 7,128,011,047.03 |
| Receivables financing | 175,036,242.93 | 187,298,909.35 |
| Advances paid | 1,493,312,465.86 | 2,558,120,124.99 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserve receivable | ||
| Other receivables | 4,510,228,597.49 | 4,262,221,292.97 |
| Including: Interest receivables | ||
| Dividends receivable | ||
| Redemptory monetary capital for sale | ||
| Inventories | 61,733,657,342.07 | 60,689,909,793.94 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 5,297,128,974.31 | 2,467,681,369.50 |
| Total current assets | 91,327,440,221.79 | 95,720,300,280.48 |
| Non-current assets: | ||
| Loans and advances | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 9,183,711,444.96 | 8,733,329,806.35 |
| Other equity instrument investments | ||
| Other non-current financial assets | ||
| Investment property | 10,395,574.60 | 10,667,020.60 |
| Fixed assets | 219,699,679,397.52 | 222,161,110,736.65 |
| Construction in progress | 41,820,671,070.59 | 26,135,157,629.45 |
| Productive biological assets | ||
| Oil & gas assets | ||
| Right-of-use assets | 200,102,141.16 | 225,606,768.34 |
| Intangible assets | 7,128,930,412.44 | 5,997,771,881.12 |
| Development expenditures | ||
| Goodwill | ||
| Long-term deferred expense | 45,701.13 | 117,159.13 |
| Deferred tax assets | 690,808,878.08 | 398,380,992.98 |
| Other non-current assets | 4,856,655,469.41 | 3,206,152,216.42 |
| Total non-current assets | 283,591,000,089.89 | 266,868,294,211.04 |
| Total assets | 374,918,440,311.68 | 362,588,594,491.52 |
| Current liabilities: | ||
| Short term borrowings | 44,810,936,767.94 | 26,369,552,400.50 |
| Central bank loans | ||
| Loans from other banks | ||
| Held-for-trading financial liabilities | 623,298,741.33 | 588,769,711.55 |
| Derivative financial liabilities | ||
| Notes payable | 4,195,471,402.63 | 3,408,800,462.03 |
| Accounts payable | 49,744,126,901.38 | 69,079,366,976.43 |
| Advances received | ||
| Contract liabilities | 4,421,732,432.83 | 3,734,262,391.81 |
| Financial liabilities under repo | ||
| Absorbing deposit and interbank deposit | ||
| Deposits for agency security transaction | ||
| Deposits for agency security underwriting | ||
| Employee benefits payable | 1,032,220,776.56 | 1,022,711,102.12 |
| Taxes and rates payable | 476,781,167.70 | 1,463,341,122.44 |
| Other payables | 16,919,133,504.47 | 3,472,604,671.47 |
| Including: Interests payable | ||
| Dividends payable | 228,000,000.00 | 108,000,000.00 |
| Handling fees and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 30,286,684,174.81 | 20,461,387,778.93 |
| Other current liabilities | 551,990,844.96 | 458,588,848.28 |
| Total current liabilities | 153,062,376,714.61 | 130,059,385,465.56 |
| Non-current liabilities: | ||
| Insurance policy reserve | ||
| Long-term borrowings | 125,179,583,821.18 | 130,962,386,969.29 |
| Bonds payable | 2,034,827,122.23 | |
| Including: Preferred shares |
| Perpetual bonds | ||
| Lease liabilities | 193,002,312.38 | 213,400,396.45 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Estimated liabilities | ||
| Deferred income | 195,581,593.25 | 195,662,553.73 |
| Deferred tax liabilities | 1,619,074,228.97 | 1,955,971,401.12 |
| Other non-current liabilities | ||
| Total non-current liabilities | 127,187,241,955.78 | 135,362,248,442.82 |
| Total liabilities | 280,249,618,670.39 | 265,421,633,908.38 |
| Owner’s equity: | ||
| Share capital | 10,125,525,000.00 | 10,125,525,000.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 10,825,322,259.36 | 10,822,594,513.39 |
| Less: Treasury shares | 6,619,807,176.02 | 3,978,202,364.65 |
| Other comprehensive income | 110,203,866.35 | 139,462,613.71 |
| Special reserve | 60,677,296.91 | |
| Surplus reserve | 974,151,644.68 | 886,470,394.72 |
| General risk reserve | ||
| Undistributed profit | 28,859,818,194.51 | 29,265,710,547.78 |
| Total equity attributable to the parent company | 44,335,891,085.79 | 47,261,560,704.95 |
| Minority equity | 50,332,930,555.50 | 49,905,399,878.19 |
| Total equity | 94,668,821,641.29 | 97,166,960,583.14 |
| Total liabilities & equity | 374,918,440,311.68 | 362,588,594,491.52 |
Legal representative: Li Shuirong Officer in charge of accounting: Wang Yafang Head of accounting firm: Zhang Shaoying
2. Balance sheet of the parent company
Unit: RMB
| Item | December 31, 2023 | January 01, 2023 |
| Current assets: | ||
| Monetary fund | 3,178,729,609.27 | 710,893,292.35 |
| Held-for-trading financial assets | 590,642.24 | |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 20,051,350.25 | 70,794,193.95 |
| Receivables financing | 48,866,718.09 | 49,291,497.90 |
| Advances paid | 86,770,376.46 | 59,646,623.00 |
| Other receivables | 3,279,228,160.71 | 674,169,712.95 |
| Including: Interest receivables | ||
| Dividends receivable | 1,230,000,000.00 | 300,000,000.00 |
| Inventories | 373,819,275.01 | 458,506,509.44 |
| Contract assets | ||
| Assets held for sale | ||
| Non-current assets due within one year | ||
| Other current assets | 80,073,156.09 | |
| Total current assets | 6,988,056,132.03 | 2,103,374,985.68 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investment | 44,868,063,401.17 | 43,204,610,202.35 |
| Other equity instrument investments | ||
| Other non-current financial assets | ||
| Investment property | 10,395,574.60 | 10,667,020.60 |
| Fixed assets | 278,851,669.68 | 292,134,252.67 |
| Construction in progress | ||
| Productive biological assets | ||
| Oil & gas assets | ||
| Right-of-use assets | 362,662.83 | 1,813,314.23 |
| Intangible assets | 15,926,750.02 | 18,392,144.26 |
| Development expenditures | ||
| Goodwill | ||
| Long-term deferred expense | ||
| Deferred tax assets | ||
| Other non-current assets | ||
| Total non-current assets | 45,173,600,058.30 | 43,527,616,934.11 |
| Total assets | 52,161,656,190.33 | 45,630,991,919.79 |
| Current liabilities: | ||
| Short-term borrowings | 5,205,927,913.36 | 7,450,753,608.62 |
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 877,250,766.14 | 700,000,000.00 |
| Accounts payable | 2,236,363,176.15 | 5,285,277,965.83 |
| Advances received | ||
| Contract liabilities | 132,034,985.73 | 149,074,706.33 |
| Employee benefits payable | 62,259,994.55 | 46,566,384.61 |
| Taxes and rates payable | 9,502,189.46 | 3,732,804.55 |
| Other payables | 17,362,996,403.59 | 5,268,355,508.97 |
| Including: Interests payable |
| Dividends payable | ||
| Liabilities held for sale | ||
| Non-current liabilities due within one year | 5,306,548,588.47 | 885,163,049.92 |
| Other current liabilities | 17,164,548.14 | 19,379,711.82 |
| Total current liabilities | 31,210,048,565.59 | 19,808,303,740.65 |
| Non-current liabilities: | ||
| Long-term borrowings | 4,066,370,787.22 | 3,695,453,801.14 |
| Bonds payable | 2,034,827,122.23 | |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 24,474.11 | |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Estimated liabilities | ||
| Deferred income | 8,319,120.04 | 9,434,323.24 |
| Deferred income liabilities | ||
| Other non-current liabilities | ||
| Total non-current liabilities | 4,074,689,907.26 | 5,739,739,720.72 |
| Total liabilities | 35,284,738,472.85 | 25,548,043,461.37 |
| Owner’s equity: | ||
| Share capital | 10,125,525,000.00 | 10,125,525,000.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 11,243,374,721.45 | 11,243,393,393.54 |
| Less: Treasury shares | 6,619,807,176.02 | 3,978,202,364.65 |
| Other comprehensive income | 80,110,211.22 | 44,972,616.09 |
| Special reserve | ||
| Surplus reserve | 974,151,644.68 | 886,470,394.72 |
| Undistributed profit | 1,073,563,316.15 | 1,760,789,418.72 |
| Total equity | 16,876,917,717.48 | 20,082,948,458.42 |
| Total liabilities & equity | 52,161,656,190.33 | 45,630,991,919.79 |
3. Consolidated income statement
Unit: RMB
| Item | 2023 | 2022 |
| I. Total operating revenue | 325,111,614,268.09 | 289,094,841,612.76 |
| Including: operating revenue | 325,111,614,268.09 | 289,094,841,612.76 |
| Interest income | ||
| Premiums earned |
| Handling fees and commissions | ||
| II. Total operating cost | 326,533,413,625.57 | 286,240,299,834.63 |
| Including: Operating cost | 287,758,885,697.30 | 257,841,154,581.27 |
| Interest expenses | ||
| Handling fees and commissions | ||
| Surrender value | ||
| Net payment of insurance claims | ||
| Net provision of insurance policy reserve | ||
| Premium bonus expenditures | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 22,947,657,583.48 | 17,010,838,980.38 |
| Selling expenses | 160,462,247.93 | 175,450,628.16 |
| Administrative expenses | 908,998,018.22 | 815,233,609.10 |
| R&D expenses | 6,555,282,352.50 | 4,367,112,486.97 |
| Financial expenses | 8,202,127,726.14 | 6,030,509,548.75 |
| Including: Interest expenses | 7,352,267,160.76 | 4,577,830,003.95 |
| Interest income | 462,192,239.25 | 351,751,026.01 |
| Add: Other income | 2,589,241,344.18 | 2,363,252,918.77 |
| Investment income (losses expressed with “-”) | 460,034,533.27 | 693,478,145.84 |
| Including: Investment income from associates and joint ventures | 275,964,998.21 | 644,363,579.51 |
| Gains from derecognition of financial assets at amortized cost | ||
| Exchange gains (losses expressed with “-”) | ||
| Net exposure hedging gains (losses expressed with “-”) | ||
| Gains on changes in fair value (losses expressed with “-”) | 155,886,267.94 | 10,728,066.90 |
| Credit impairment loss (losses expressed with “-”) | -105,271,556.51 | -15,203,657.84 |
| Loss on assets impairment (losses marked with “-”) | -121,513,148.98 | -282,256,547.80 |
| Gains on disposal of assets (losses expressed with “-”) | 3,706,231.92 | 3,885,078.23 |
| III. Operating profit (losses expressed with “-”) | 1,560,284,314.34 | 5,628,425,782.23 |
| Add: non-operating income | 2,956,271.70 | 4,744,570.37 |
| Less: non-operating expenses | 10,662,129.76 | 14,101,126.33 |
| IV. Total profits (total losses expressed with “-”) | 1,552,578,456.28 | 5,619,069,226.27 |
| Less: income tax expenses | -50,584,009.36 | -751,253,791.74 |
| V. Net profit (net losses expressed with “-”) | 1,603,162,465.64 | 6,370,323,018.01 |
| (I) By business continuity | ||
| 1. Net profit from going concern (net losses expressed with “-”) | 1,603,162,465.64 | 6,370,323,018.01 |
| 2. Net profit from discontinued operations (net losses expressed with “-”) | ||
| (II) By ownership | ||
| 1. Net profit attributable to shareholders of the parent company | 1,158,146,248.89 | 3,340,713,394.56 |
| 2. Minority equity income | 445,016,216.75 | 3,029,609,623.45 |
| VI. Other comprehensive income, net of tax | -15,189,892.14 | 181,210,268.64 |
| After-tax net of other comprehensive income attributable to the owners of parent company | -29,258,747.36 | 151,931,680.55 |
| (I) Other comprehensive income which may not be reclassified to gain and loss | 590,642.24 | |
| 1. Re-measurement of changes in defined benefit plans | ||
| 2. Other comprehensive income which may not be transferred to gain and loss under the equity method | ||
| 3. Changes in fair value of investment in other equity instruments | ||
| 4. Changes in fair value of the credit risk of the Company | ||
| 5. Others | 590,642.24 | |
| (II) Other comprehensive income which may be reclassified to gain and loss | -29,849,389.60 | 151,931,680.55 |
| 1. Other comprehensive income which may be transferred to gain and loss under the equity method | 34,005,723.54 | -21,083,875.34 |
| 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 | -63,855,113.14 | 173,015,555.89 |
| 7. Others | ||
| Other comprehensive income attributable to minority shareholders, net of tax | 14,068,855.22 | 29,278,588.09 |
| VII. Total comprehensive income | 1,587,972,573.50 | 6,551,533,286.65 |
| Total comprehensive income attributable to owners of the parent company | 1,128,887,501.53 | 3,492,645,075.11 |
| Total comprehensive income attributable to minority shareholders | 459,085,071.97 | 3,058,888,211.54 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.12 | 0.33 |
| (II) Diluted earnings per share | 0.12 | 0.33 |
Legal representative: Li Shuirong Officer in charge of accounting: Wang Yafang Head of accounting firm: Zhang Shaoying
4. Income statement of the parent Company
Unit: RMB
| Item | 2023 | 2022 |
| I. Operating income | 3,801,464,198.72 | 3,906,667,116.58 |
| Less: operating costs | 3,722,981,661.13 | 4,022,505,958.26 |
| Taxes and surcharges | 6,655,211.53 | 12,952,366.03 |
| Selling expenses | 57,902,895.45 | 33,791,804.36 |
| Administrative expenses | 50,209,045.98 | 50,127,420.98 |
| R&D expenses | 96,402,110.80 | 81,025,592.00 |
| Financial expenses | 830,017,775.12 | 706,400,629.87 |
| Including: Interest expenses | 889,784,232.11 | 730,301,227.51 |
| Interest income | 62,283,984.35 | 36,626,532.50 |
| Add: Other income | 751,632,963.95 | 7,346,841.85 |
| Investment income (losses expressed with “-”) | 1,089,479,531.08 | 2,736,300,881.32 |
| Including: return on investment in associated enterprises and joint ventures | 213,559,806.48 | 268,195,976.97 |
| Gains on derecognition of financial assets measured at amortized cost (loss expressed with “-”) | ||
| Net exposure hedging gains (losses expressed with “-”) | ||
| Gains on changes in fair value (losses expressed with “-”) | ||
| Credit impairment loss (losses expressed with “-”) | 1,510,901.98 | 6,828,715.54 |
| Loss on assets impairment (losses marked with “-”) | -2,961,557.87 | -12,601,352.12 |
| Gains on disposal of assets (losses expressed with “-”) | -14,028.90 | |
| II. Operating profits (losses expressed with “-”) | 876,943,308.95 | 1,737,738,431.67 |
| Add: non-operating income | 21,209.63 | 12,190.56 |
| Less: non-operating expenses | 152,018.99 | 3,336.13 |
| III. Total profits (total losses expressed with “-”) | 876,812,499.59 | 1,737,747,286.10 |
| Less: income tax expenses | ||
| IV. Net profits (net losses expressed with “-”) | 876,812,499.59 | 1,737,747,286.10 |
| (I) Net profits from going concern (net losses expressed with “-”) | 876,812,499.59 | 1,737,747,286.10 |
| (II) Net profits from discontinued operations (net losses expressed with “-”) | ||
| V. Other comprehensive incomes, net of tax | 35,137,595.13 | -41,608,615.77 |
| (I) Other comprehensive income which may not be reclassified to gain and loss | 590,642.24 | |
| 1. Re-measurement of changes in defined benefit plans | ||
| 2. Other comprehensive income which may not be transferred to gain and loss under the equity method | ||
| 3. Changes in fair value of investment in other equity instruments | ||
| 4. Changes in fair value of the credit risk of the Company | ||
| 5. Others | 590,642.24 | |
| (II) Other comprehensive income which may be reclassified to gain and loss | 34,546,952.89 | -41,608,615.77 |
| 1. Other comprehensive income which may be transferred to gain and loss under the equity method | 34,546,952.89 | -41,608,615.77 |
| 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 | 911,950,094.72 | 1,696,138,670.33 |
| VII. Earnings per share | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated cash flow statement
Unit: RMB
| Item | 2023 | 2022 |
| I. Cash flow from operating activities: | ||
| Cash received from sales of goods or rendering of services | 427,728,683,875.50 | 338,522,230,751.87 |
| Net increase in deposits from customers and other banks | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Cash received from receiving insurance premium of original insurance contracts | ||
| Net cash received from reinsurance business | ||
| Net increase in deposits and investment of the insured | ||
| Cash received from interests, handling charges and commissions | ||
| Net increase in borrowing funds | ||
| Net increase in repurchase business capital | ||
| Net cash received from securities trading agency | ||
| Refunds of taxes and levies | 9,958,573,336.65 | 23,966,619,179.64 |
| Cash received relating to other operating activities | 5,651,780,404.79 | 4,013,759,568.90 |
| Subtotal of cash inflows for operating activities | 443,339,037,616.94 | 366,502,609,500.41 |
| Cash paid for goods purchased and services received | 382,643,654,728.90 | 313,742,412,549.33 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits with the central bank and other banks | ||
| Cash paid for claims under original insurance contracts | ||
| Net increase in lending funds | ||
| Cash paid for interests, handling charges and commissions | ||
| Cash paid for policy dividends | ||
| Cash paid to and on behalf of employees | 3,522,432,198.53 | 3,796,045,980.29 |
| Payments of all types of taxes | 25,072,810,953.81 | 26,372,263,702.45 |
| Cash paid relating to other operating activities | 4,020,918,226.97 | 3,533,750,382.98 |
| Subtotal of cash outflows from operating activities | 415,259,816,108.21 | 347,444,472,615.05 |
| Net cash flow from operating activities | 28,079,221,508.73 | 19,058,136,885.36 |
| II. Cash flows from investing activities: |
| Cash received from investment recovery | 3,180,301,658.70 | 3,729,684,617.90 |
| Cash received from the return on investment | 46,185,918.80 | 480,185,918.81 |
| Net cash received from the disposal of fixed assets, intangible assets and other long-term assets | 33,821,614.72 | 128,655,426.42 |
| Net cash received from the disposal of subsidiaries and other business units | 18,698,663.16 | |
| Cash received relating to other investing activities | 471,846,135.19 | 413,191,478.93 |
| Subtotal of cash inflows from investing activities | 3,750,853,990.57 | 4,751,717,442.06 |
| Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 32,643,267,964.49 | 29,457,883,096.55 |
| Cash paid for investments | 3,178,359,828.41 | 3,773,365,703.69 |
| Net increase in pledge loans | ||
| Net cash paid for acquisition of subsidiaries and other business units | ||
| Cash paid relating to other investing activities | 216,460,115.21 | 486,776,219.14 |
| Subtotal of cash outflows from investing activities | 36,038,087,908.11 | 33,718,025,019.38 |
| Net cash flow from investment activities | -32,287,233,917.54 | -28,966,307,577.32 |
| III. Cash flow from financing activities: | ||
| Cash received from absorption of investment | 2,498,660,000.00 | |
| Including: cash received by subsidiaries from investments of minority shareholders | 2,498,660,000.00 | |
| Cash received from borrowings | 138,409,693,130.84 | 93,103,414,620.97 |
| Cash received relating to other financing activities | 20,885,325,460.00 | 14,699,581,588.16 |
| Subtotal of cash inflows from financing activities | 159,295,018,590.84 | 110,301,656,209.13 |
| Cash paid for repayment of debts | 117,188,136,080.88 | 76,513,846,971.48 |
| Cash paid for distribution of dividends and profits or payment of interests | 9,700,463,891.53 | 11,471,972,294.10 |
| Including: dividends or profits paid by subsidiaries to minority shareholders | 2,529,500,000.00 | |
| Cash paid relating to other financing activities | 31,203,648,155.85 | 10,759,163,614.10 |
| Subtotal of cash outflows from financing activities | 158,092,248,128.26 | 98,744,982,879.68 |
| Net cash flow from financing activities | 1,202,770,462.58 | 11,556,673,329.45 |
| IV. Effect of change in exchange rate on cash and cash equivalents | -967,182,760.02 | -528,060,478.39 |
| V. Net increase in cash and cash equivalents | -3,972,424,706.25 | 1,120,442,159.10 |
| Add: opening balance of cash and cash equivalents | 15,459,279,803.77 | 14,338,837,644.67 |
| VI. Closing balance of cash and cash equivalents | 11,486,855,097.52 | 15,459,279,803.77 |
6. Cash flow statement of the parent Company
Unit: RMB
| Item | 2023 | 2022 |
| I. Cash flow from operating activities: | ||
| Cash received from sales of goods or rendering of services | 9,684,499,404.78 | 9,019,533,970.04 |
| Refunds of taxes and levies | 90,299,027.73 | 3,706,999.49 |
| Cash received relating to other operating activities | 1,009,384,263.80 | 3,335,504,075.51 |
| Subtotal of cash inflows for operating activities | 10,784,182,696.31 | 12,358,745,045.04 |
| Cash paid for goods purchased and services received | 10,826,529,124.42 | 8,155,206,221.15 |
| Cash paid to and on behalf of employees | 246,704,453.63 | 265,783,347.86 |
| Payments of all types of taxes | 13,470,165.07 | 84,164,591.71 |
| Cash paid relating to other operating activities | 799,794,540.43 | 3,416,128,004.85 |
| Subtotal of cash outflows from operating activities | 11,886,498,283.55 | 11,921,282,165.57 |
| Net cash flow from operating activities | -1,102,315,587.24 | 437,462,879.47 |
| II. Cash flows from investing activities: | ||
| Cash received from investment recovery | 62,012,313.32 | 4,234,526.03 |
| Cash received from the return on investment | 39,685,918.80 | 3,286,685,918.80 |
| Net cash received from the disposal of fixed assets, intangible assets and other long-term assets | 376,446.55 | |
| Net cash received from the disposal of subsidiaries and other business units | 1,061,902.58 | |
| Cash received relating to other investing activities | 2,003,000,000.00 | |
| Subtotal of cash inflows from investing activities | 2,105,074,678.67 | 3,291,982,347.41 |
| Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets | 16,403,475.25 | 29,750,290.38 |
| Cash paid for investments | 1,516,209,000.00 | 2,985,996,536.00 |
| Net cash paid for acquisition of subsidiaries and other business units | ||
| Cash paid relating to other investing activities | 2,878,891,000.00 | |
| Subtotal of cash outflows from investing activities | 4,411,503,475.25 | 3,015,746,826.38 |
| Net cash flow from investment activities | -2,306,428,796.58 | 276,235,521.03 |
| III. Cash flow from financing activities: | ||
| Cash received from absorption of investment | ||
| Cash received from borrowings | 11,935,860,000.00 | 13,937,740,982.91 |
| Cash received relating to other financing activities | 24,651,006,000.00 | 16,320,574,824.00 |
| Subtotal of cash inflows from financing activities | 36,586,866,000.00 | 30,258,315,806.91 |
| Cash paid for repayment of debts | 11,421,360,479.28 | 11,029,293,598.66 |
| Cash paid for distribution of dividends and profits or payment of interests | 2,030,433,516.19 | 2,009,000,996.77 |
| Cash paid relating to other financing activities | 17,082,266,592.43 | 17,875,313,657.27 |
| Subtotal of cash outflows from financing activities | 30,534,060,587.90 | 30,913,608,252.70 |
| Net cash flow from financing activities | 6,052,805,412.10 | -655,292,445.79 |
| IV. Effect of change in exchange rate on cash and cash equivalents | 288,239.11 | -12,330,984.86 |
| V. Net increase in cash and cash equivalents | 2,644,349,267.39 | 46,074,969.85 |
| Add: opening balance of cash and cash equivalents | 510,179,880.17 | 464,104,910.32 |
| VI. Closing balance of cash and cash equivalents | 3,154,529,147.56 | 510,179,880.17 |
7. Consolidated statement of changes in owner’s equity
Closing balance
Unit: RMB
| Item | 2023 | ||||||||||||||
| Owner’s equity attributable to the parent company | Minority equity | Total owner’s equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Generic risk reserves | Undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Closing balance of the previous year | 10,125,525,000.00 | 10,822,594,513.39 | 3,978,202,364.65 | 139,462,613.71 | 886,470,394.72 | 29,265,710,547.78 | 47,261,560,704.95 | 49,905,399,878.19 | 97,166,960,583.14 | ||||||
| Add: Changes in accounting policies | |||||||||||||||
| Correction of errors in the previous period | |||||||||||||||
| Others | |||||||||||||||
| II. Opening balance of the year | 10,125,525,000.00 | 10,822,594,513.39 | 3,978,202,364.65 | 139,462,613.71 | 886,470,394.72 | 29,265,710,547.78 | 47,261,560,704.95 | 49,905,399,878.19 | 97,166,960,583.14 | ||||||
| III. Increases/decreases in the current period (decrease expressed with “-”) | 2,727,745.97 | 2,641,604,811.37 | -29,258,747.36 | 60,677,296.91 | 87,681,249.96 | -405,892,353.27 | 427,530,677.31 | -2,498,138,941.85 | |||||||
| (I) Total comprehensive income | -29,258,747.36 | 1,158,146,248.89 | 459,085,071.97 | 1,587,972,573.50 | |||||||||||
| (II) Capital contributed and reduced by owners | 2,641,604,811.37 | -2,641,604,811.37 | |||||||||||||
| 1. Ordinary shares invested by the owners | 2,641,604,811.37 | -2,641,604,811.37 | |||||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amount of share-based payment recognized in owner’s equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | 87,681,249.96 | -1,564,038,602.16 | -120,000,000.00 | -1,596,357,352.20 | |||||||||||
| 1. Withdrawal of surplus reserve | 87,681,249.96 | -87,681,249.96 | |||||||||||||
| 2. Withdrawal of generic risk reserves | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -1,476,357,352.20 | -120,000,000.00 | -1,596,357,352.20 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-forward of owner’s equity | |||||||||||||||
| 1. Capital reserve transferred into capital (or share capital) | |||||||||||||||
| 2. Surplus reserve transferred into capital (or share capital) | |||||||||||||||
| 3. Surplus reserves for making up loss | |||||||||||||||
| 4. Changes in defined benefit plans carried forward to retained earnings | |||||||||||||||
| 5. Other comprehensive incomes carried forward to retained earnings |
| 6. Others | |||||||||||||||
| (V) Special reserve | 60,677,296.91 | 58,876,200.72 | 119,553,497.63 | ||||||||||||
| 1. Amount appropriated in the current period | 367,322,639.12 | 289,192,850.95 | 656,515,490.07 | ||||||||||||
| 2. Use in the current period | 306,645,342.21 | 230,316,650.23 | 536,961,992.44 | ||||||||||||
| (VI) Others | 2,727,745.97 | 29,569,404.62 | 32,297,150.59 | ||||||||||||
| IV. Closing balance of the current period | 10,125,525,000.00 | 10,825,322,259.36 | 6,619,807,176.02 | 110,203,866.35 | 60,677,296.91 | 974,151,644.68 | 28,859,818,194.51 | 50,332,930,555.50 | 94,668,821,641.29 |
Opening balance
Unit: RMB
| Item | 2022 | ||||||||||||||
| Owner’s equity attributable to the parent company | Minority equity | Total owner’s equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Generic risk reserves | Undistributed profits | Others | Subtotal | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Closing balance of the previous year | 10,125,525,000.00 | 10,820,095,850.58 | -12,469,066.84 | 712,695,666.11 | 27,605,458,498.55 | 49,251,305,948.40 | 46,795,697,482.66 | 96,047,003,431.06 | |||||||
| Add: Changes in accounting policies | 626,838.23 | 626,838.23 | 626,838.23 | ||||||||||||
| Correction of errors in the previous period | |||||||||||||||
| Others | |||||||||||||||
| II. Opening balance of the year | 10,125,525,000.00 | 10,820,095,850.58 | -12,469,066.84 | 712,695,666.11 | 27,606,085,336.78 | 49,251,932,786.63 | 46,795,697,482.66 | 96,047,630,269.29 | |||||||
| III. Increases/decreases in the current period (decrease expressed with “-”) | 2,498,662.81 | 3,978,202,364.65 | 151,931,680.55 | 173,774,728.61 | 1,659,625,211.00 | -1,990,372,081.68 | 3,109,702,395.53 | 1,119,330,313.85 | |||||||
| (I) Total comprehensive income | 151,931,680.55 | 3,340,713,394.56 | 3,492,645,075.11 | 3,058,888,211.54 | 6,551,533,286.65 | ||||||||||
| (II) Capital contributed and reduced by owners | 3,978,202,364.65 | -3,978,202,364.65 | 2,498,660,000.00 | -1,479,542,364.65 | |||||||||||
| 1. Ordinary shares invested by the owners | 3,978,202,364.65 | -3,978,202,364.65 | 2,498,660,000.00 | -1,479,542,364.65 | |||||||||||
| 2. Capital contributed by holders of other equity instruments | |||||||||||||||
| 3. Amount of share-based payment recognized in owner’s equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | 173,774,728.61 | -1,681,088,183.56 | -1,507,313,454.95 | -2,450,000,000.00 | -3,957,313,454.95 | ||||||||||
| 1. Withdrawal of surplus reserve | 173,774,728.61 | -173,774,728.61 | |||||||||||||
| 2. Withdrawal of generic risk reserves | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -1,507,313,454.95 | -1,507,313,454.95 | -2,450,000,000.00 | -3,957,313,454.95 |
| 4. Others | |||||||||||||||
| (IV) Internal carry-forward of owner’s equity | |||||||||||||||
| 1. Capital reserve transferred into capital (or share capital) | |||||||||||||||
| 2. Surplus reserve transferred into capital (or share capital) | |||||||||||||||
| 3. Surplus reserves for making up loss | |||||||||||||||
| 4. Changes in defined benefit plans carried forward to retained earnings | |||||||||||||||
| 5. Other comprehensive incomes carried forward to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Amount appropriated in the current period | 224,052,374.80 | 224,052,374.80 | 165,574,100.95 | 389,626,475.75 | |||||||||||
| 2. Use in the current period | 224,052,374.80 | 224,052,374.80 | 165,574,100.95 | 389,626,475.75 | |||||||||||
| (VI) Others | 2,498,662.81 | 2,498,662.81 | 2,154,183.99 | 4,652,846.80 | |||||||||||
| IV. Closing balance of the current period | 10,125,525,000.00 | 10,822,594,513.39 | 3,978,202,364.65 | 139,462,613.71 | 886,470,394.72 | 29,265,710,547.78 | 47,261,560,704.95 | 49,905,399,878.19 | 97,166,960,583.14 |
8. Statement of changes in owners’ equity of the parent company
Closing balance
Unit: RMB
| Item | 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Others | Total owner’s equity | |||
| Preferred shares | Perpetual bond | Others | ||||||||||
| I. Closing balance of the previous year | 10,125,525,000.00 | 11,243,393,393.54 | 3,978,202,364.65 | 44,972,616.09 | 886,470,394.72 | 1,760,789,418.72 | 20,082,948,458.42 | |||||
| Add: Changes in accounting policies | ||||||||||||
| Correction of errors in the previous period | ||||||||||||
| Others | ||||||||||||
| II. Opening balance of the year | 10,125,525,000.00 | 11,243,393,393.54 | 3,978,202,364.65 | 44,972,616.09 | 886,470,394.72 | 1,760,789,418.72 | 20,082,948,458.42 | |||||
| III. Increases/decreases in the current period (decrease expressed with “-”) | -18,672.09 | 2,641,604,811.37 | 35,137,595.13 | 87,681,249.96 | -687,226,102.57 | -3,206,030,740.94 | ||||||
| (I) Total comprehensive income | 35,137,595.13 | 876,812,499.59 | 911,950,094.72 | |||||||||
| (II) Capital contributed and reduced by owners | 2,641,604,811.37 | -2,641,604,811.37 | ||||||||||
| 1. Ordinary shares invested by the owners | 2,641,604,811.37 | -2,641,604,811.37 | ||||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amount of share-based payment recognized in owner’s equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | 87,681,249.96 | -1,564,038,602.16 | -1,476,357,352.20 | |||||||||
| 1. Withdrawal of surplus reserve | 87,681,249.96 | -87,681,249.96 | ||||||||||
| 2. Distribution to owners (or shareholders) | -1,476,357,352.20 | -1,476,357,352.20 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-forward of owner’s equity | ||||||||||||
| 1. Capital reserve transferred into capital (or share capital) | ||||||||||||
| 2. Surplus reserve transferred into capital (or share capital) | ||||||||||||
| 3. Surplus reserves for making up loss | ||||||||||||
| 4. Changes in defined benefit plans carried forward to retained earnings | ||||||||||||
| 5. Other comprehensive incomes carried forward to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Amount appropriated in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | -18,672.09 | -18,672.09 | ||||||||||
| IV. Closing balance of the current period | 10,125,525,000.00 | 11,243,374,721.45 | 6,619,807,176.02 | 80,110,211.22 | 974,151,644.68 | 1,073,563,316.15 | 16,876,917,717.48 |
Opening balance
Unit: RMB
| Item | 2022 | |||||||||||
| Share capital | Other equity instruments | Capital reserve | Less: Treasury stock | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profits | Others | Total owner’s equity | |||
| Preferred shares | Perpetual bond | Others | ||||||||||
| I. Closing balance of the previous year | 10,125,525,000.00 | 11,243,136,840.58 | 86,581,231.86 | 712,695,666.11 | 1,704,130,316.18 | 23,872,069,054.73 | ||||||
| Add: Changes in accounting policies | ||||||||||||
| Correction of errors in the previous period | ||||||||||||
| Others | ||||||||||||
| II. Opening balance of the year | 10,125,525,000.00 | 11,243,136,840.58 | 86,581,231.86 | 712,695,666.11 | 1,704,130,316.18 | 23,872,069,054.73 | ||||||
| III. Increases/decreases in the current period (decrease expressed with “-”) | 256,552.96 | 3,978,202,364.65 | -41,608,615.77 | 173,774,728.61 | 56,659,102.54 | -3,789,120,596.31 | ||||||
| (I) Total comprehensive income | -41,608,615.77 | 1,737,747,286.10 | 1,696,138,670.33 | |||||||||
| (II) Capital contributed and reduced by owners | 3,978,202,364.65 | -3,978,202,364.65 | ||||||||||
| 1. Ordinary shares invested by the owners | 3,978,202,364.65 | -3,978,202,364.65 | ||||||||||
| 2. Capital contributed by holders of other equity instruments | ||||||||||||
| 3. Amount of share-based payment recognized in owner’s equity | ||||||||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | 173,774,728.61 | -1,681,08 | -1,507,313 | |||||||||
| 8,183.56 | ,454.95 | |||||||||||
| 1. Withdrawal of surplus reserve | 173,774,728.61 | -173,774,728.61 | ||||||||||
| 2. Distribution to owners (or shareholders) | -1,507,313,454.95 | -1,507,313,454.95 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-forward of owner’s equity | ||||||||||||
| 1. Capital reserve transferred into capital (or share capital) | ||||||||||||
| 2. Surplus reserve transferred into capital (or share capital) | ||||||||||||
| 3. Surplus reserves for making up loss | ||||||||||||
| 4. Changes in defined benefit plans carried forward to retained earnings | ||||||||||||
| 5. Other comprehensive incomes carried forward to retained earnings | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Amount appropriated in the current period | ||||||||||||
| 2. Use in the current period | ||||||||||||
| (VI) Others | 256,552.96 | 256,552.96 | ||||||||||
| IV. Closing balance of the current period | 10,125,525,000.00 | 11,243,393,393.54 | 3,978,202,364.65 | 44,972,616.09 | 886,470,394.72 | 1,760,789,418.72 | 20,082,948,458.42 |
III. Company ProfileRongsheng Petrochemical Co., Ltd. (hereinafter referred to as the Company) is a joint-stock limited companyinitiated and established on the foundation of Rongsheng Chemical Fiber Group Co., Ltd. by Zhejiang RongshengHolding Group Co., Ltd., as well as natural persons including Li Shuirong, Li Yongqing, Li Guoqing, Xu Yuejuan,Ni Xincai and Zhao Guanlong. The Company was registered on June 18, 2007 and is headquartered in Hangzhou,Zhejiang Province. The Company now holds the Business License (Unified Social Credit Code:
91330000255693873W) issued by the Market Regulation Administration of Zhejiang Province, with a registeredcapital of RMB 10,125,525,000.00 and a total of 10,125,525,000 shares (par value: RMB 1 per share), includingoutstanding shares subject to sales restrictions: 627,243,750 A shares, and outstanding shares not subject to salesrestrictions: 9,498,281,250 A shares. Shares of the Company were listed for trading at Shenzhen Stock Exchangeon November 2, 2010.The Company operates in the petrochemical fiber industry. Business scope: manufacturing and processing ofpolyester 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 cargotransportation (operation with a valid license), import and export business. (Business activities subject to theapproval shall be carried out upon approval by relevant departments according to law.) Main products include oilrefining products, chemical products, PTA, polyester chip, polyester yarn and film, and so forth.
The financial statements were approved for disclosure at the 17th meeting of the 6th Board of Directors ofthe Company on April 24, 2024.IV. Preparation Basis of Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on a going concern basis.
2. Going concern
There are no matters or circumstances that cause the Company to have serious doubts about its going concernability within 12 months from the end of the reporting period.V. Significant Accounting Policies and EstimatesImportant note: The Company has set up accounting policies and estimates on transactions or events such asimpairment of financial instruments, inventories, depreciation of fixed assets, construction in progress, intangibleassets, revenue recognition, etc., based on the Company’s actual production and operation features.
1. Statement of compliance with the Accounting Standards for Business EnterprisesThe financial statements have been prepared in accordance with the requirements of China Accounting Standardsfor Business Enterprises (CASBEs), and present truly and completely the financial position, financial performanceand cash flows of the Company.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is classified as current ifit is expected to be realized or due within 12 months.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan, while thefunctional currencies of subsidiaries engaged in overseas operations including Hong Kong Sheng Hui Limited,Hong Kong Yi Sheng Da Hua Co., Limited, Yisheng New Materials Trading Co., Limited, RongshengPetrochemical (Hong Kong) Limited, Rongsheng Petrochemical (Singapore) Pte. Ltd., Rongtong Logistics(Singapore) Pte. Ltd., Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd., etc. are the currencies of the primaryeconomic environment in which they operate.
5. Determination method and basis for selection of materiality
?Applicable □Not applicable
The Company prepares and discloses financial statements in compliance with the principle of materiality.The items disclosed in notes to the financial statements involving materiality judgements, determination methodand basis for selection of materiality are as follows:
| Item | Disclosed items involving materiality judgements |
| Significant advances paid with age over one year | Advances paid with single amount in excess of 0.5% of total assets are identified as significant advances paid. |
| Significant construction in progress | Construction in progress with single amount in excess of 0.5% of total assets are identified as significant construction in progress. |
| Significant advances paid with age over one year | Advances paid with single amount in excess of 0.5% of total assets are identified as significant advances paid. |
| Significant other payables with age over one year | Other payables with single amount in excess of 0.5% of total assets are identified as significant other payables |
| Significant contract liabilities with age over one year | Contract liabilities with single amount in excess of 0.5% of total assets are identified as significant contract liabilities. |
| Significant cash flows from investing activities | Cash flows from investing activities with single amount in excess of 0.5% of total assets are identified as significant cash flows from investing activities. |
| Significant not wholly-owned subsidiaries | Subsidiaries with total assets in excess of 3% of the group’s total assets are identified as significant not wholly-owned subsidiaries. |
| Significant associates | Associates with the carrying amount of single investment in excess of 0.5% of total assets are identified as significant associates. |
| Significant commitments | Commitments with single amount in excess of 3% of total assets or other events that may be significantly influential for investors in decision-making are identified as significant commitments. |
| Significant contingencies | Contingencies with single amount in excess of 3% of total assets or other events that may be significantly influential for investors in decision-making are identified as significant contingencies. |
| Significant events after the balance sheet date | Profit distribution and other events after the balance sheet date that may be significantly influential for investors in decision-making are identified as significant events after the balance sheet date. |
6. Accounting methods for business combinations under the same control and not under the same control
1. Accounting methods for business combinations under the same control
The assets and liabilities acquired by the Company in business combination shall be measured according tothe book value of the combined party in the consolidated financial statements of the final controlling party on thedate of combination. The Company shall adjust the capital reserve according to the difference between the bookvalue share of the owner’s equity of the combined party in the consolidated financial statements of the finalcontrolling party and the book value of the consolidated consideration paid or the total face value of the issuedshares; 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 identifiablenet assets of the acquiree obtained in the merger is recognized as goodwill. If the combined cost is less than thefair value share of the identifiable net assets of the acquiree obtained in the combination, first, the fair value ofidentifiable assets, liabilities and contingent liabilities of the acquiree and the measurement of combined cost arereviewed. If the combined cost is still less than the fair value share of identifiable net assets of the acquireeobtained in the merger after review, the difference is included in the current gain and loss.
7. Judgement criteria for control and compilation method of consolidated financial statements
1. Judgement of control
An investor controls an investee if and only if the investor has all the following: (1) power over the investee;
(2) exposure, or rights, to variable returns from its involvement with the investee; and (3) the ability to use itspower over the investee to affect the amount of the investor’s returns.
2. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidatedfinancial statements are compiled by the parent company according to “CASBE 33 – Consolidated FinancialStatements”, based on relevant information and the financial statements of the parent company and its subsidiaries.
8. Classification of joint arrangements and accounting treatment of joint operations
1. Joint arrangements include joint operations and joint ventures.
2. When the Company is a joint operator of a joint operation, it recognizes the following items in relation toits interest in a joint operation:
(1) its assets, including its share of any assets held jointly;
(2) its liabilities, including its share of any liabilities incurred jointly;
(3) its revenue from the sale of its share of the output arising from the joint operation;
(4) its share of the revenue from the sale of the assets by the joint operation; and
(5) its expenses, including its share of any expenses incurred jointly.
9. Recognition standard for cash and cash equivalents
Cash listed in the statement of cash flows refers to cash on hand and deposits that can be used for payment atany time. The term “cash equivalents” refers to short-term and highly liquid investments that are readilyconvertible to known amounts of cash and which are subject to an insignificant risk of change in value.
10. Foreign currency business and conversion of foreign currency statements
1. Translation of foreign currency business
In foreign currency transactions, the spot exchange rate at the transaction date shall be adopted at the initialrecognition to convert the foreign currency into the amount of RMB. On the balance sheet date, the monetaryitems denominated in foreign currencies are translated at the spot exchange rate on the balance sheet date. Theexchange differences arising from the exchange rate are included in current gain and loss except for the exchangedifference between the principal and interest of foreign currency-specific borrowings related to the acquisition andconstruction of assets eligible for capitalization. The foreign currency non-monetary items measured at historicalcost are still translated at the spot exchange rate at the transaction date, and their RMB amount shall not bechanged. Foreign currency non-monetary items measured at fair value are translated at the spot exchange rate atthe determination date of fair value, and the exchange differences are included in current gain and loss or othercomprehensive income.
2. Translation of foreign currency financial statements
Items of assets and liabilities in the balance sheet are translated at the spot exchange rate prevailing on thebalance sheet date. Except for the "undistributed profit" item, other items of owner’s equity are translated at thespot exchange rate at the transaction date. Income and expense items in the income statement are translated at theapproximate spot exchange rate at the transaction date. The converted difference in foreign currency financialstatements arising from the above translations is included in other comprehensive income.
11. Financial instruments
1. Classification of financial assets and financial liabilities
At initial recognition, financial assets are classified into the following three categories: (1) financial assets atamortized cost; (2) financial assets at fair value through other comprehensive income; and (3) financial assets atfair value through gain and loss.
At initial recognition, financial liabilities are classified into four categories: (1) financial liabilities at fairvalue through gain and loss; (2) financial liabilities that are formed since the transfer of financial assets do notcomply 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 theabove (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 financialliabilities
(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 financialinstrument 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 shallbe directly recorded in current gain and loss. For other categories of financial assets or financial liabilities, therelated transaction expenses are included in the initial recognition amount. However, if the accounts receivableinitially recognized by the Company do not contain significant financing components or the Company does notconsider the financing components in contracts less than one year, the initial recognition shall be carried outaccording 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 lossesarising 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 orrecognition of impairment.
2) Debt instrument investments at fair value through other comprehensive incomeThey are subsequently measured at fair value. Interest, impairment losses or gains and exchange gains andlosses calculated by the effective interest method are included in current gain and loss, and other gains or lossesare included in other comprehensive income. Upon derecognition, the accumulated gain or loss previouslyincluded in other comprehensive incomes is transferred from other comprehensive incomes and included in thecurrent gain and loss.
3) Equity instrument investments at fair value through other comprehensive incomeThey are subsequently measured at fair value. Dividends obtained (except those falling under the recovery ofinvestment costs) are included in current gain and loss, and other gains or losses are included in othercomprehensive income. Upon derecognition, the accumulated gain or loss previously included in othercomprehensive incomes is transferred out from other comprehensive incomes and included in retained earnings.
4) Financial assets at fair value through gain and loss
They are subsequently measured at fair value, and the resulting gains or losses (including interest anddividend income) are included in current gain and loss, unless the financial asset is part of the hedgingrelationship.
(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 aresubsequently measured at fair value. Change in fair value of financial liability designated to be measured at fairvalue through gain and loss due to change in the Company’s own credit risk is included in other comprehensiveincome, unless the treatment will cause or expand the accounting mismatch in gain and loss. Other gains or lossesarising from such financial liabilities (including interest expenses, except changes in fair value caused by changesin the own credit risk) are included in current gain and loss, unless the financial liabilities are part of the hedgingrelationship. Upon derecognition, the accumulated gain or loss previously included in other comprehensiveincomes 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 theconditions 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 underthe 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 ofthe following: ① the amount of loss reserve determined in accordance with the impairment provisions of financialinstruments; ② the remaining amount after the determined accumulative amortization amount is deducted fromthe initially recognized amount in accordance with relevant provisions of the Accounting Standards for BusinessEnterprises No.14—Revenue.
4) Financial liabilities at amortized cost
They are measured at amortized cost under the effective interest method. Gains or losses arising fromfinancial liabilities measured at amortized cost and not part of any hedging relationship are included in currentgain 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 onderecognition of a financial asset under the Accounting Standards for Business Enterprises No. 23—Transfer ofFinancial Assets.
2) When the current obligations of financial liabilities (or part thereof) have been discharged, the recognitionof 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 assetstransferred, these financial assets will be derecognized, and the rights and obligations that occurred or wereretained during the transfer are separately recognized as assets or liabilities. Where almost all risks and rewards onthe 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 thefinancial assets, it shall be disposed of in the following conditions: (1) where the control over the financial asset isnot retained, the recognition of the financial asset shall be terminated, and the rights and obligations arising orretained in the transfer shall be separately recognized as assets or liabilities; 2) where the control over the financialasset is retained, the relevant financial asset shall be recognized according to the degree of continued involvementin 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 betweenthe following two amounts shall be included in the current gain and loss: (1) the book value of the transferredfinancial assets on the date of derecognition; (2) the sum of the consideration received from the transfer offinancial assets and the amount of the derecognized part in a cumulative amount of change in fair value which isoriginally included in other comprehensive income (the financial assets involved in the transfer are debtinstrument 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 financialasset before transfer shall be allocated between the derecognized part and the continued recognition part accordingto their relative fair values on the transfer date, and the difference between the following two amounts shall beincluded in current gain and loss: (1) the book value of the derecognized part; (2) the sum of the consideration ofthe derecognized part and the amount of the corresponding derecognized part in the accumulated amount ofchanges in fair value originally directly included in other comprehensive income (the financial assets involved inthe 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 thevaluation technique applicable in the prevailing circumstance and supported by sufficient available data and otherinformation. The Company classifies the input values used by the valuation technique as the following tiers anduses them in turns:
(1) Tier 1 input value refers to the unadjusted quotations of the same assets or liabilities in an active marketwhich can be obtained on the measurement date;
(2) Tier 2 input value refers to them directly or indirectly observable input value of relevant assets orliabilities 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 otherthan quotations, such as interest rates and yield curves that are observable during normal quotation intervals; inputvalues for market validation, etc.;
(3) Tier 3 input value refers to the unobservable input value of relevant assets or liabilities, including thevolatility of interest rate and stock that cannot be directly observed or cannot be verified by observable marketdata, the future cash flows of the disposal obligations assumed in the business combination, financial forecastsmade using its own data, etc.
5. Impairment of financial instruments
On the basis of expected credit loss, for financial assets at amortized cost, debt instrument investments at fairvalue through other comprehensive income, contract assets, lease receivables, loan commitments classified asfinancial liabilities at fair value through gain and loss, financial guarantee contracts that do not belong to financialliabilities at fair value through gain and loss or financial liabilities formed by the transfer of financial assets thatdo not meet the conditions for derecognition or continue to be involved in the transferred financial assets shall beimpaired and loss reserve shall be recognized.
Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by therisk of default. Credit loss refers to the difference between all contract cash flow receivables according to thecontract, and all cash flows expected to be collected, that is, the present value of all cash shortages. The financialassets purchased or generated by the Company that have suffered credit impairment are discounted according tothe credit-adjusted effective interest rate of the financial assets.
For the purchased or originated financial assets with credit impairment, the Company only recognizes thecumulative change of expected credit loss in the whole existence period after initial recognition as the loss reserveon the balance sheet date.
For leases receivable, and accounts receivable and contract assets resulting from transactions regulated in“CASBE 14 – Revenues”, the Company chooses simplified approach to measure the loss allowance at an amountequal to lifetime expected credit losses.
For financial assets other than the above measurement methods, the Company assesses whether its credit riskhas increased significantly since initial recognition on each balance sheet date. If the credit risk has increasedsignificantly since the initial recognition, the Company shall measure the loss reserve according to the amount ofexpected credit loss during the whole existence period. If the credit risk has not increased significantly since theinitial recognition, the Company shall measure the loss reserve according to the amount of expected credit loss ofthe financial instrument in the next 12 months.
The Company uses available reasonable and credible information, including forward-looking information, todetermine whether the credit risk of financial instruments has increased significantly since the initial recognitionby comparing the default risk of financial instruments on the balance sheet date with the default risk on the initialrecognition date.
On the balance sheet date, if the Company judges that the financial instrument only has low credit risk, it isassumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.
The Company evaluates the expected credit risk and measures the expected credit loss on the basis of a singlefinancial 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 riskcharacteristics.
The Company re-measures the expected credit loss on each balance sheet date, and the resulting increase orreversal of the loss reserve is included in the current gain and loss as impairment loss or profit. For financial assetsat amortized cost, the loss provision is offset against the book value of the financial asset as given in the balancesheet; For debt investment measured at fair value through other comprehensive income, the loss allowances arerecognized in other comprehensive income by the Company instead of offsetting the book value of the financialassets.
6. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately on the balance sheet and can not offset eachother. However, if the following conditions are met at the same time, the net amount after mutual offset shall belisted in the balance sheet: (1) the Company has the legal right to set off the recognized amount, and such legalright is currently enforceable; (2) the Company intends either to settle on a net basis, or to realize the financialassets and pay off the financial liabilities simultaneously.For the transfer of financial assets not in line with the conditions for derecognition, the Company does notoffset the transferred financial assets and liabilities.
12. Contract assets
The Company presents contract assets or liabilities in the balance sheet based on the relation betweenperformance obligation and customer payment. Contract assets and contract liabilities under the same contractshall offset each other and be presented on a net basis. The Company presents an unconditional right toconsideration (i.e., only the passage of time is required before the consideration is due) as a receivable, andpresents a right to consideration in exchange for goods that it has transferred to a customer (which is conditionalon something other than the passage of time) as a contract asset.
1. Receivables and contract assets subject to expected credit losses based on a combination of credit riskcharacteristics
| Category of combination | Basis for determining portfolios | Method for measuring expected credit loss |
| Banker’s acceptance receivables | Type of notes | With reference to historical credit loss experience and in combination with the current situation and the forecast of future economic conditions, the expected credit loss is calculated through default risk exposure and the expected credit loss rate in the whole duration |
| Commercial acceptance bill receivables | ||
| Accounts receivable - aging portfolio | Aging | With reference to historical credit loss experience and in combination with the current situation and the forecast of future economic conditions, the comparison table between the aging of accounts receivable and the expected credit loss rate is compiled to calculate the expected credit loss |
| Accounts receivable - trade accounts portfolio of overseas subsidiaries | Nature of account | With reference to historical credit loss experience and in combination with the current situation and the forecast of future economic conditions, the expected credit loss is calculated through default risk exposure and the expected credit loss rate in the whole duration |
| Accounts receivable - Related party dealings portfolio within the scope of consolidation | Related parties within the scope of consolidation [note] | |
| Other receivables - Related party dealings portfolio within the scope of consolidation | Related parties within the scope of consolidation [note] | With reference to historical credit loss experience and in combination with the current situation and the forecast of future economic conditions, the expected credit loss is calculated through default risk exposure and the expected credit loss rate in the next 12 months or the whole duration. |
| Other receivables - Loan margin portfolio | Nature of account | |
| Other receivables - government receivables portfolio | ||
| Other receivables - futures margin portfolio | ||
| Other receivables - paper goods transaction settlement portfolio | ||
| Other receivables - deposit and margin receivables portfolio | ||
| Other receivables - reserve fund receivables portfolio |
Other receivables - current accountportfolio
[Note]: Related parties of the Company and within the scope of consolidated financial statements
2. Comparison table of ages and expected credit loss rate of portfolio grouped with ages
| Ages | Expected credit loss rate of accounts receivable (%) |
| Within 1 year (inclusive, the same hereinafter) | 5 |
| 1— 2 years | 10 |
| 2-3 years | 30 |
| Above 3 years | 100 |
Ages of accounts receivable are calculated from the month when such receivables are accrued.
3. Recognition criteria for receivables and contract assets with expected credit losses measured on anindividual basis
For receivables and contract assets whose credit risk is significantly different from that of portfolios, theCompany accrues expected credit losses on an individual basis.
13. Inventories
1. Classification of inventories
Inventory includes finished products or commodities held for sale in daily activities, products in the processof production, materials and supplies consumed in the process of production or providing labor services.
2. Valuation method for delivered inventories
Inventories delivered shall be weighted average at the end of each month.
3. Inventory system of inventories
The perpetual inventory system is adopted for inventories.
4. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables
Low-value consumables are amortized using the one-off amortization method.
(2) Packages
Packages are amortized with one-off method.
5. Recognition criteria and accrual method of provision for inventory write-down
At the balance sheet date, inventories are measured at the lower of cost and net realizable value; provisionsfor inventory write-down are made on the excess of its cost over the net realizable value. The net realizable valueof inventory directly used for sale will be determined by the amount of the estimated selling price of the inventoryminus the estimated sales expenses and related taxes. For inventories that need to be processed, the net realizablevalue shall be determined in the normal production and operation process by subtracting the estimated sellingprice of finished products produced from the estimated cost to be incurred when completion, the estimated salesexpenses and relevant taxes and fees. On the balance sheet date, if a part of the same inventory has a contractprice agreement and other parts do not have a contract price, the net realizable value shall be determinedrespectively, and the corresponding cost shall be compared to determine the accrual or reversal amount ofinventory depreciation reserve respectively.
14. Long-term equity investment
1. Judgment of joint control and significant influence
Joint control refers to the shared control over a certain arrangement according to the relevant agreement, andthe activities under such arrangement are subject to approval by the parties sharing the control power. Significantinfluence refers to that one party has the power to participate in the decision-making of financial and operatingpolicies 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, transferof non-cash assets, assumption of debts or issuing of equity securities as combination consideration, the share ofowner’s equity of the combined party acquired in the book value of total owner’s equity in consolidated financialstatements of the ultimate controller on the combination date shall be identified as the initial investment cost oflong-term equity investment. The difference between the initial investment cost of long-term equity investmentand the book value of the combination consideration paid or the par value of the issued shares is adjusted againstthe 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] andimplemented 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 accountingtreatment. If it is not a package deal, on the date of combination, the share of the book value of net assets of thecombined party that should be enjoyed after combination in the consolidated financial statements of the ultimatecontroller, 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 investmentbefore the combination is realized and the book value of consideration additionally paid to further acquire shareson the date of combination is adjusted against the capital reserve. If the capital reserve is not sufficient foroffsetting, the adjustment is made to retained earnings.
(2) As for business combinations not under the same control, the fair value of the combination considerationpaid 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 andimplemented through multiple transactions step by step by the Company, the accounting treatment is different inunconsolidated financial statements and consolidated financial statements:
1) In individual financial statements, the initial investment cost of long-term equity investment accountedusing the cost method is measured at the sum of the book value of equity investment originally held andinvestment cost additionally paid.
2) In consolidated financial statements, it is a must to judge whether they are “package deals”. If they arepackage deals, each deal is regarded as a deal to obtain control right for accounting treatment. Suppose thesetransactions 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 berecognized as current investment income. In case the equity of the acquiree held before the purchase date involvesother comprehensive income under the equity method, relevant other comprehensive income shall be transferredto 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 actuallypaid purchase price is taken as the initial investment cost; the long-term equity investment formed by issuingequity securities, the fair value of issuing equity securities is taken as the initial investment costs. If acquiredthrough debt restructuring, its initial investment cost shall be determined in accordance with the AccountingStandards for Business Enterprises No. 12—Debt Restructuring; in the case of non-monetary asset exchange, theinitial investment cost shall be determined in accordance with the Accounting Standards for Business EnterprisesNo. 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 thecost method; long-term equity investment in associated enterprises and joint ventures is accounted for under theequity method.
4. Treatment methods for investments in subsidiaries through multiple deals step by step until control losing
(1) Judgment principle for whether a "package deal" or not
If the equity investment in the subsidiary is disposed of step by step through multiple transactions until itloses control, the Company will judge whether the step-by-step transaction is a "package deal" by combining theterms of the transaction agreement, the disposal consideration obtained separately, the object of equity sale, thedisposal method and the disposal time in each step of the step-by-step transactions. The terms, conditions andeconomic impact of each transaction meet one or more of the following conditions, which usually indicates thatmultiple transactions are "package deals":
1) These transactions were concluded at the same time or under the consideration of mutual impact;
2) These transactions as a whole can achieve a complete business result;
3) The occurrence of a transaction depends on the occurrence of at least one other transaction;
4) A transaction is uneconomical when viewed alone, but it is economical when considered together withother transactions.
(2) Accounting treatment for non-"package deals"
1) Individual financial statements
For disposal of equity, the difference between book value and the actual price of the acquisition shall berecorded into current gain and loss. For the remaining equity, if the investor still has significant influence over theinvestee or imposes joint control with other parties, it is accounted for by the equity method; In case of failure tocontrol, jointly control or significantly influence the investee, it shall be calculated in accordance with theprovisions of the Accounting Standards for Business Enterprises No. 22—Recognition and Measurement ofFinancial Instruments.
2) Consolidated financial statements
Before losing control, the capital reserves (capital premium) are adjusted at the difference between thedisposal cost and the share in net assets of subsidiaries calculated continuously from the acquisition date orcombination date corresponding to the disposal of long-term equity investment; if the capital premium is notsufficient 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 thedate of control loss. The balance of the sum of the consideration received through the disposal of equity and thefair value of the remaining equity after deducting the entitled share of net assets continuously calculated at theoriginal shareholding ratio from the purchase date or the date of combination in the subsidiary is recognized in theinvestment income for the period during which the control is lost, and is written off against goodwill. Othercomprehensive income related to equity investment in the former subsidiary is transferred into return oninvestment for the period during which the control is lost.
(3) Accounting treatment for "package deals"
1) Individual financial statements
Each deal is considered as a deal for the disposal of the subsidiary and losing control of accounting treatment.However, the difference between the disposal cost of each deal before losing the control and the book value oflong-term equity investment corresponding to the disposal investment is recognized as other comprehensiveincome in individual financial statements, and when the control is lost, transferred together into gain and loss forthe period during which the control is lost.
2) Consolidated financial statements
Each deal is considered as a deal for the disposal of the subsidiary and losing control of accounting treatment.However, the difference between the disposal cost of each deal before losing the control and the entitled share ofnet assets of the subsidiary corresponding to the disposal investment is recognized as other comprehensive incomein consolidated financial statements, and when the control is lost, transferred together into gain and loss for theperiod during which the control is lost.
15. Investment properties
Measurement model of investment properties
Measurement by the cost methodDepreciation or amortization methods
1. Investment properties of the Company include the land use rights leased and held for sale afterappreciation, and leased buildings.
2. Investment properties are initially measured by cost and subsequently measured by the cost model, with itsdepreciation or amortization conducted by the same methods for fixed assets and intangible assets.
16. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for production, service, lease or operation with a service life of morethan one accounting year. Fixed assets can be recognized only when related economic benefits are very likely toflow into the Company, and their costs can be measured reliably.
(2) Depreciation method
| Category | Depreciation method | Depreciable life (years) | Residual value rate | Annual depreciation rate |
| Housing and buildings | Straight-line depreciation method | 5-30 | 5 or 10 | 19.00-3.00 |
| Machinery and equipment | Straight-line depreciation method | 10-15 | 5 or 10 | 9.50-6.00 |
| Transportation facilities | Straight-line depreciation method | 4-5 | 5 or 10 | 23.75-18.00 |
| Other equipment | Straight-line depreciation method | 3-10 | 5 or 10 | 31.67-9.00 |
17. Construction in progress
1. Construction in progress is able to be recognized only when related economic benefits are very likely toflow into the Company, and its costs can be measured reliably. Construction in progress is measured at the actualcost 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 isready for its intended use. As for construction in progress which is ready for the intended use but has not gonethrough 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 accrueddepreciation shall be adjusted based on actual costs.
| Categories | Standards and time point of transferring construction in progress to fixed assets |
| Buildings and structures | When the main project and supporting projects have been substantially completed and reached the intended design requirements, and acceptance has been completed by survey, design, construction, supervision and other units. |
| Machinery | When the design requirements or standards specified in the contract are met after installation and commissioning |
18. Borrowing costs
1. Recognition principle of the capitalization of borrowing costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition andconstruction or production of a qualifying asset for capitalization, it shall be capitalized and recognized as costs ofrelevant assets; Other borrowing costs shall be recognized as an expense when they are incurred and included incurrent gain and loss.
2. Capitalization period of borrowing costs
(1) Capitalization begins when the borrowing cost meets the following conditions: 1) asset expenditure hasbeen incurred; 2) the borrowing costs have been incurred; 3) the acquisition, construction or production activitiesnecessary 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 areinterrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs shall be suspended. The borrowing costs incurred during such period shall be recognized asexpenses 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 forintended 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 forcapitalization conditions, interest income to be capitalized shall be recognized after deducting the bank interestsfor the unused portion or the investment income for short-term investment from the interest costs (includingrecognized depreciation or amortization of premium under effective interest method) actually occurred in thecurrent period of specific borrowing. Where a general borrowing is used for the acquisition, construction, orproduction of assets eligible for capitalization, it shall determine the capitalization amount of interests on thegeneral borrowing by multiplying the weighted average asset expenses of the part of the accumulative assetexpenses minus the special borrowings by the capitalization rate of the general borrowings used.
19. Intangible assets
(1) Service life and its determination basis, estimation, amortization method or review procedure
1. Intangible assets include land use rights, patent rights and non-patented technology and so on, which areinitially measured according to cost.
2. Any intangible asset with a limited service life shall be amortized in a systematic and rational mannerbased on the expected realization method of economic benefits related to it within its service life; where theexpected realization method cannot be confirmed reliably, the straight-line method shall be adopted. Details are asfollows:
| Items | Useful life and determination basis | Amortization method |
| Land-use right | 15-50 years, useful life registered on the land use certificate | Straight-line method |
| Proprietary technology | 6-10 years, estimated economic useful life | Straight-line method |
| Management software | 5-10 years, estimated economic useful life | Straight-line method |
| Pollution discharge right | 5-20 years, useful life registered on the certificate of titles | Straight-line method |
| Sea area use right | 1-50 years, useful life registered on the certificate of titles | Straight-line method |
(2) Collection scope of R&D expenditure and related accounting treatment methods
(1) Personnel costs
Personnel costs include wages and salaries, basic endowment insurance premiums, basic medical insurancepremiums, unemployment insurance premiums, occupational injuries premiums, maternity premiums and housingprovident funds for the Company’s R&D personnel, as well as labor costs for external R&D personnel.If R&D personnel serve for multiple R&D projects at the same time, personnel costs are recognized based ontheir working hour records provided by the Company’s administrative department, and proportionately allocatedamong different R&D projects.If personnel directly engaged in R&D activities and external R&D personnel are engaged in non-R&Dactivities at the same time, the Company, based on their working hour records at different positions, allocatespersonnel costs actually incurred between R&D expenses and production and operating expenses using reasonablemethods such as the ratio of actual working hours.
(2) Direct input costs
Direct input costs refer to relevant expenses actually incurred by the Company for R&D activities, whichinclude: 1) materials, fuel and power costs directly consumed by R&D activities; 2) development andmanufacturing costs of molds and craft equipment used for intermediate tests and trial production, acquisitioncosts of samples, prototypes and general testing methods that do not constitute fixed assets, and inspection costsof trial production; and 3) operation and maintenance, adjustment, inspection, testing and repairing costs ofinstruments and equipment used for R&D activities.
(3) Depreciation costs
Depreciation costs refer to the depreciation of instruments, equipment and in-use buildings used for R&Dactivities.
For instruments, equipment and in-use buildings both used for R&D activities and non-R&D activities,necessary records shall be kept on their usage, and depreciation actually incurred is allocated between R&Dexpenses and production and operating expenses in a reasonable manner based on the actual working hours, theusable area, etc.
(4) Amortization costs of intangible assets
Amortization costs of intangible assets refer to the amortization of software, intellectual property, and non-patented technology (proprietary technology, licenses, design and calculation methods, etc.) used for R&Dactivities.
(5) Design expenses
Design expenses refer to expenses incurred for the conception, development and manufacturing of newproducts and techniques, design of processes, technical specifications, process specification formulation,operational characteristics, etc., including expenses incurred for creative design activities to obtain innovative,creative and breakthrough products.
(6) Equipment commissioning expenses
Equipment commissioning expenses refer to expenses incurred for R&D activities during tooling preparation,including expenses incurred for activities such as development of special and specialized production machines,changes in production and quality control procedures, development of new methods and standards, etc.Expenses incurred for routine tooling preparation and industrial engineering for the purpose of large-scale/mass and commercial production are not included in the permitted scope.
(7) R&D outsourcing expenses
R&D outsourcing expenses refer to expenses incurred for R&D activities outsourced to other domestic orforeign organizations or individuals (outcomes of R&D activities are owned by the Company and closely relatedto the Company’s main business operations).
(8) Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to R&D activities,including technical books and materials fees, data translation fees, expert consultation fees, high-tech R&Dinsurance premiums, R&D outcomes search, demonstration, evaluation, appraisal and acceptance fees, intellectualproperty application, registration and agency fees, conference fees, business travelling fees, communication fees,etc.
The expenditure in the research stage of internal R&D projects is included in the current gain and loss. Theexpenditures incurred during the development of an internal R&D project shall be recognized as intangible assetsif they simultaneously meet the following conditions: (1) It is technically feasible to complete the intangible assetsso that they can be used or sold; (2) it is intended to finish and use or sell the intangible assets; (3) the ways forintangible assets to generate economic benefits shall be proven useful, including the way to prove that there is apotential market for the products manufactured with the intangible assets or there is a potential market for theintangible assets or the intangible assets will be used internally; (4) enough technical and financial resources andother resources are available to support the development of such intangible assets, and the Company is able to useor sell such intangible assets; (5) the expenses incurred from developing the intangible asset can be reliablymeasured.
20. Impairment of long-term assets
Long-term assets such as long-term equity investment, investment properties measured by the cost model,fixed assets, construction in progress, right-of-use assets and intangible assets with limited service lives shall beevaluated for their recoverable amount in case of any sign of impairment at the balance sheet date. For goodwillformed by business combination and intangible assets with uncertain service life, an impairment test should becarried out every year regardless of whether there is a sign of impairment. Goodwill impairment testing must bedone 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 theprovision for asset impairment based on the difference and recognize such loss into the current gains and losses.
21. Long-term deferred expenses
Long-term deferred expenses refer to all expenses that have been paid and have an amortization period ofmore than one year (excluding one year). Long-term deferred expenses are recorded at the actual incurred amountand amortized on an average basis by stages over the beneficial period or prescribed period. In case that long-termdeferred expense items cannot benefit the future accounting periods, the amortized value of such unamortizeditems shall be fully transferred into the current gain and loss.
22. Contract liabilities
The Company presents contract assets or liabilities in the balance sheet based on the relation betweenperformance obligation and customer payment. The Company will record the net amount of contract assets andcontract liabilities under the same contract after they are set off against each other.The Company presents the obligation to transfer goods to the customer for considerations received orreceivable from the customer as a contract liability.
23. Employee remuneration
Employee remuneration includes short-term remuneration, post-employment benefits, dismissal benefits andother long-term employee benefits.
(1) Accounting treatment method for short-term remuneration
The actual short-term remuneration in the accounting period when employees offer services for the Companywill 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 bedeposited according to the defined contribution plan shall be recognized as the liability and recorded into thecurrent gain and loss or the cost of the relevant assets.
(2) The accounting treatment for a defined benefit plan generally includes the following steps:
1) In accordance with the projected unit credit method, demographic and financial variables are estimatedusing unbiased and consistent actuarial assumptions, the obligations arising from the defined benefit plan aremeasured, and the period for the relevant obligation is determined. In the meantime, the obligations arising fromthe defined benefit plan are discounted to determine the present value and current cost of service of the definedbenefit plan.
2) Where the defined benefit plan involves any assets, the deficit or surplus resulting from the present valueof obligations in the defined benefit plan minus the fair value of assets shall be recognized as net liabilities or netassets of the defined benefit plan. Where the defined benefit plan has any surplus, the Company will measure thenet assets of the defined benefit plan based on the surplus or asset limit of the defined benefit plan (whichever isthe lower);
3) At the end of the period, the Company shall recognize the cost of employee remuneration as cost ofservice, 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 interestof net liabilities or net assets of the defined benefit plan are recorded in the current gain and loss or relevant assetcost, changes arising from the re-measurement of net liabilities or net assets of the defined benefit plan arerecorded in other comprehensive incomes and is not allowed to be carried back to gains or losses during thesubsequent accounting period, but the amounts recognized in other comprehensive incomes can be transferredwithin the equity scope.
(3) Accounting treatment method for dismissal benefits
Where dismissal benefits are provided to employees, liabilities in employee remuneration are recognized andincluded in the current gain and loss when: (1) the Company is not in a position to unilaterally withdraw dismissalbenefits provided under termination plans or layoff proposals; (2) when the Company recognizes the costs orexpenses 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 reachesthe conditions of the defined benefit plan, accounting treatment shall be adopted based on relevant provisions ofthe defined benefit plan. For long-term employee benefits other than the aforesaid ones, the accounting treatmentshould be conducted in accordance with relevant provisions of the defined benefit plan. In order to simplifyrelevant accounting treatments, the employee remuneration cost resulting from other long-term employee benefitsshall be recognized as cost of service, the total net amount of component items, including net interest of netliabilities or net asset of other long-term employee benefits, as well as changes arising from re-measurement of netliabilities or net asset of other long-term employee benefits and so on, is recorded in current gain and loss orrelevant asset cost.
24. Provisions
1. Provisions are recognized when fulfilling the present obligations arising from contingencies such asproviding guarantee for other parties, litigation, products quality guarantee, onerous contract, etc., may cause theoutflow of the economic benefit and such obligations can be reliably measured.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling thepresent obligations, and its carrying amount is reviewed at the balance sheet date.
25. Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement according to business types
1. Revenue recognition principle
The Company assesses the contract from the commencement date of the contract and recognizes eachindividual performance obligation included by the contract, and determines whether each individual performanceobligation 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 conditionsare met; otherwise it will constitute performance of obligation at a certain time point: (1) the customer obtains andconsumes economic benefits arising from contract performance by the Company; (2) the customer can controlgoods in progress during the process of contract performance by the Company; (3) goods arising from contractperformance by the Company have irreplaceable purposes, and the Company is entitled to receive payment foraccumulatively completed performance proportion to date throughout the contract term.
If the performance obligations are performed within the specified period, the Company will recognize theincome within this period in accordance with the progress of the contract’s performance. If the performanceprogress cannot be determined reasonably and the costs incurred are expected to be compensated, the income willbe recognized according to the costs incurred until the performance progress is determined reasonably. If theperformance obligations are performed at a time point, the Company will recognize the income at the time whenthe 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 hasthe right to receive payment currently; namely, the customer assumes the obligation of making payment currentlyin 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 alreadytransferred the material object of the goods to the customer, namely the customer has already obtained such goodsin the material object; 4) the Company has already transferred the significant risk and consideration of theproperty in the goods to the customer, namely, the customer has already obtained the significant risk andconsideration of the property in the goods; (5) the customer has accepted such goods; (6) other signs that indicatethe 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 eachsingle performance obligation. Transaction price refers to the amount of consideration the Company expects toreceive for the transfer of goods or services to the customer, but it does not include payments received on behalfof 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 variableconsideration in line with the expected or most possible amount, but the transaction price that contains variableconsideration will not exceed the amount of accumulated recognized income that is least likely to be reversedwhen relevant uncertainties are removed.
(3) If there is significant financing in the contract, the Company shall determine the transaction priceaccording to the amount payable in cash when the client obtains control of the goods or services. The differencebetween the transaction price and contract consideration is amortized by the effective interest method during theterm of the contract. On the contract commencement date, if the Company estimates that the time between thecustomer’s acquisition of control over goods or services and the payment of the price by the customer will notexceed 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, theCompany shall allocate the transaction price to each separate performance obligation according to the relativeproportion 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 andfilm, and so forth, fulfilling its performance obligation at a certain time point. Proceeds from domestic sales arerecognized when the Company has delivered the products to the buyer, the amount of product sales revenue hasbeen determined, the payment for goods has been recovered, or the collection voucher has been obtained, and therelevant economic benefits are likely to flow in. Proceeds from overseas market sales are recognized when theCompany has declared the products at the customs and obtained the bill of lading according to the contract, theamount of product sales revenue has been determined, the payment for goods has been recovered, or the collectionvoucher has been obtained, and the relevant economic benefits are likely to flow in.
(XXV) Costs of obtaining a contract and costs to fulfill a contract
Where the incremental cost incurred by the Company to acquire the contract is expected to be recovered, it isrecognized in the form of contract acquisition cost as an asset. The contract acquisition cost for which theamortization 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 ofrelevant standards relating to inventories, fixed assets or intangible assets, can be recognized as an asset within thecontract 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, directmaterial/manufacture cost (or similar costs), cost to be undertaken by the customer and other costs incurred underthe 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 servicesrelated 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 beobtained due to the transfer of goods or services relating to the assets minus the estimated cost to be incurred, theCompany accrues impairment reserves for the excess portion and recognizes it as an asset impairment loss. If thefactors causing the impairment of the prior period change and make the remaining consideration expected to beobtained due to the transfer of goods or services relating to the assets minus the estimated cost to be incurredhigher than the book value of the asset, the withdrew asset impairment provision shall be reversed and recorded inthe current gains or losses, but the book value of the asset after reversion shall not exceed the book value of theasset at the reversion date under the condition of not withdrawing the impairment provision.
26. Contract costs
Assets relating to contract cost comprise contract acquisition cost and contract performance cost.
Where the incremental cost incurred by the Company to acquire the contract is expected to be recovered, it isrecognized in the form of contract acquisition cost as an asset. The contract acquisition cost for which theamortization 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 ofrelevant standards relating to inventories, fixed assets or intangible assets, can be recognized as an asset within thecontract 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, directmaterial/manufacture cost (or similar costs), cost to be undertaken by the customer and other costs incurred underthe 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 servicesrelated 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 beobtained due to the transfer of goods or services relating to the assets minus the estimated cost to be incurred, theCompany accrues impairment reserves for the excess portion and recognizes it as an asset impairment loss. If thefactors causing the impairment of the prior period change and make the remaining consideration expected to beobtained due to the transfer of goods or services relating to the assets minus the estimated cost to be incurredhigher than the book value of the asset, the withdrew asset impairment provision shall be reversed and recorded inthe current gains or losses, but the book value of the asset after reversion shall not exceed the book value of theasset at the reversion date under the condition of not withdrawing the impairment provision.
27. Government grants
1. Government grants are recognized when both of the following conditions are met: (1) the Company is ableto meet the conditions attached to the government grants; (2) the Company can receive government grants. In the
case of a monetary asset, the government subsidies shall be measured according to the amount received or accrued.In the case of a non-monetary asset, the government grants shall be measured at fair value; where the fair valuecannot 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 orother formation of long-term assets are classified as asset-related government grants. If the governmentdocuments are not clear, judgment shall be made on the basis of the basic conditions that must be met to obtainthe grants, and those that are based on the acquisition, construction or other formation of long-term assets aretreated as asset-related government grants. Government grants relating to the assets are either written off againstthe book value of the relevant assets or recognized as deferred income. The government grants recognized asdeferred income shall be recorded in the gain and loss on a reasonable and systematic basis over the service life ofrelevant assets. The government grants measured according to notional amount shall be directly included incurrent gain and loss. If the relevant asset has been sold, transferred, retired or damaged before the end of theservice life, the balance of the relevant deferred income that has not been allocated will be transferred into thecurrent 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 todistinguish between government grants that are asset-related or income-related and such grants are generallyclassified as asset-related. Income-related government grants of the Company are used for compensation forrelevant costs & expenses or losses in subsequent periods, which are recognized as deferred income, and recordedin current gain and loss or offset against relevant costs in the period of recognition of relevant costs, expenses orlosses. Government grants for compensation for incurred relevant costs and expenses or losses are directlyincluded 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 otherincomes or written down related costs and expenses according to the economic and business nature. Governmentgrants 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 bankprovides loans to the Company at preferential policy interest rates, the Company shall use the actual amount ofloans received as the entry value, and calculate the borrowing costs based on the principal and the preferentialpolicy interest rate.
(2) If the Treasury allocates the discount interest funds directly to the Company, the discount interest will beused to offset the borrowing costs.
28. Deferred tax assets/deferred tax liabilities
1. Depending on the difference between the book value and the tax base of assets or liabilities (the differencebetween the tax base and the book value if the tax base of items not recognized as assets or liabilities can bedetermined based on tax laws), the deferred income tax assets or deferred income tax liabilities shall be calculatedand 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 deductingtemporary deductible difference. On the balance sheet date, if there is concrete evidence indicating that it is likelyto obtain enough taxable income in the future to offset temporary deductible difference, the deferred income taxassets 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 itis unlikely to obtain enough taxable income to offset gains generated from the deferred income tax assets, then itis necessary to write down the book value of deferred income tax assets. If it is likely to obtain enough taxableincome, the deducted amount shall be recovered.
4. The current income taxes and deferred income taxes of the Company are recorded as income tax expenseor income in the current gains or losses, excluding income taxes arising from: (1) business combination; (2)transactions or events recognized directly in owner’s equity.
5. When both following conditions are met, the Company will list the deferred income tax assets anddeferred income tax liabilities as net amount after offset: (1) When the Company has the legal right to settle theincome tax assets and income tax liabilities of the Company in the current period with net amount; and (2) thedeferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same taxcollection and management department from the same subject of tax payment or from different subjects of taxpayment but the subject of tax payment involved intends to settle the current income tax assets and current incometax liabilities with the net amount or obtain the assets and liquidate the liabilities simultaneously in each futureimportant period when the deferred income tax assets and deferred income tax liabilities are written back.
29. Lease
(1) Accounting treatment method of lease as the lessee
1. The Company as lessee
On the commencement date of the lease term, the Company recognizes the lease with a lease term of no morethan 12 months and without the purchase option as a short-term lease; and recognizes the lease with lower valuewhen a single leased asset is brand new as a low-value asset lease. In case of a sublease or expected sublease oflease 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 therelevant 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, theCompany recognizes the right-of-use assets and lease liabilities for the lease on the commencement date of thelease term.
(1) Right-of-use assets
The right-of-use assets shall be initially measured at cost. The cost includes: 1) the initial measurementamount of the lease liability; 2) the amount of lease payment made on or before the commencement date of leaseterm, net of the relevant amount of used lease incentives (if any); 3) the initial direct expenses incurred by thelessee; 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 leaseterms.
The Company will use the straight-line method to calculate the depreciation of the right-of-use assets. Whereit is reasonably certain that the ownership of the leased assets can be obtained at the expiry of the lease term, theleased assets shall be depreciated by the Company over its remaining service life. Where it is not reasonablycertain that the ownership of the leased assets can be obtained at the time the term of the lease expires, theCompany shall accrue the depreciation within the shorter of the lease period and the remaining service life of theleased 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 theinterest rate embedded in the lease as the discount rate. If the Company is unable to determine the interest rateembedded in the lease, it will adopt the incremental borrowing rate as the discount rate. The difference betweenthe lease payment and its present value is treated as unrecognized financing expenses, on which the interestexpenses are recognized at the discount rate of the present value of the lease payment during each period of thelease term and included in the current gain and loss. The variable lease payments not included in the measurementof 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 valueof the lease payments after the change, and adjusts the book value of the right-of-use asset accordingly in case ofchanges in the actual fixed payment amount, the expected payable amount of the guarantee residual value, theindex or ratio used to determine the lease payment amount, the purchase option, and evaluation result or the actualexercise situation of the lease renewal option or the termination option. Where the book value of the right-of-useasset has been reduced to zero, but a further reduction is required for the lease liabilities, the remaining amountshall be included in the current gain and loss.
(2) Accounting treatment method of lease as the lessor
1. The Company as lessor
At the inception of the lease, a lease that transfers in substance almost all risks and rewards related to theownership of leased assets is classified as a financing lease by the Company. Except for the financing lease, othersare 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 thestraight-line method, and the initial direct costs incurred are capitalized and amortized on the same basis as therecognition of rental income, which is included in the current gain and loss by installment. Variable leasepayments the Company acquired in connection with operating leases that are not included in the lease receipts arerecognized 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 leaseinvestment (the sum of the unsecured residual value and the present value of the lease collection not received onthe first date of the lease term and discounted at the interest rate implicit in the lease), and derecognizes thefinancing lease assets. During each period of the lease term, the Company calculates and recognizes the interestincome 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 netlease investment are included in the current gain and loss when actually incurred.
2. After-sale leaseback
(1) The Company as lessee
According to the Accounting Standards for Business Enterprises No.14-Revenue, the Company evaluates anddetermines whether the asset transfer in the after-sale leaseback transaction belongs to sales. If the asset transfer inthe after-sale leaseback transaction belongs to sales, the Company will measure the right-of-use assets formed byafter-sale leaseback according to the part of the book value of the original assets related to the right-of-useobtained by leaseback, and only recognize the relevant gains or losses for the right transferred to the lessor. If theasset transfer in the after-sale leaseback transaction does not belong to sales, the Company will continue torecognize the transferred assets, and at the same time recognize a financial liability equal to the transferred income,
and conduct accounting treatment for the financial liability according to the Accounting Standards for BusinessEnterprises No.22-Recognition and Measurement of Financial Instruments.
(2) According to the Accounting Standards for Business Enterprises No.14-Revenue, the Company, as thelessor, evaluates and determines whether the asset transfer in the after-sale leaseback transaction belongs to sales.If the asset transfer in the after-sale leaseback transaction belongs to sales, the Company will carry out accountingtreatment on the asset purchase according to other applicable accounting standards for business enterprises, andcarry out accounting treatment on the asset lease according to the Accounting Standards for Business EnterprisesNo.21-Lease. If the asset transfer in the after-sale leaseback transaction does not belong to sales, the Companywill not recognize the transferred assets, but recognize the financial assets equal to the transferred income, andconduct accounting treatment for the financial assets according to the Accounting Standards for BusinessEnterprises No.22-Recognition and Measurement of Financial Instruments.
30. Other significant accounting policy and accounting estimate
Accounting treatment methods related to repurchasing company's shares
If the Company's shares are purchased for reasons such as reducing the registered capital or rewardingemployees, they shall be treated as treasury stock according to the actual amount paid and registered for futurereference. If the repurchased shares are cancelled, the capital reserve will be offset by the difference between thetotal par value of the shares calculated according to the cancelled par value and the number of cancelled sharesand the actual amount paid for the repurchase, and the retained earnings will be offset if the capital reserve isinsufficient; If the repurchased shares are awarded to the employees of the Company as equity-settled shares,when the employees exercise the right to purchase the shares of the Company and pay the price, the cost of thetreasury stocks delivered to the employees and the accumulated amount of capital reserve (other capital reserve)during the waiting period will be resold, and the capital reserve (equity premium) will be adjusted according to thedifference.
31. Changes in significant accounting policies and accounting estimates
(1) Significant accounting policy changes
?Applicable □Not applicable
Since January 1, 2023, the Company has implemented the provisions of Interpretation No.16 of AccountingStandards for Business Enterprises issued by the Ministry of Finance on the accounting treatment of deferredincome tax related to assets and liabilities arising from individual transactions that are not exempted from initialrecognition, and adjusted the individual transactions that are subject to this provision between the beginning of theearliest presentation period of the financial statements when the provision is first implemented and the firstimplementation date. In case of taxable temporary differences and deductible temporary differences arising fromthe lease liabilities and right-of-use assets recognized due to the application of the provisions at the beginning ofthe earliest presentation period of the financial statements when the provisions are first implemented, as well asthe estimated liabilities related to the recognized disposal obligation and the corresponding related assets, theaccumulated impacted number will be adjusted according to the provisions of the provisions and the AccountingStandards for Business Enterprises No.18-Income Tax to present the beginning retained earnings of the earliestpresentation period of the financial statements and other related financial statement items.
The specific adjustments are as follows:
| Statement items significantly affected | Amount affected | Note |
| Balance sheet items on December 31, 2022 | ||
| Deferred income tax assets | 1,177,803.84 | |
| Undistributed profits | 1,177,803.84 | |
| Income statement items in 2022 | ||
| Income tax expenses | -550,965.61 |
(2) Significant accounting estimate changes
□Applicable ?Not applicable
32. Others
(1) Safety production costs
The safety production costs withdrawn by the Company in accordance with the Administrative Measures forthe Collection and Utilization of Enterprise Safety Production Funds (CZ [2022] No. 136) promulgated by theMinistry of Finance and the Ministry of Emergency Management were charged to the costs of relevant products orcurrent profits or losses and also to the “special reserve”. In the case of using the withdrawn safety productioncosts, if they belong to cost expenditure, they shall directly offset the special reserves. Where a fixed asset isformed, the expenditures incurred shall be collected under the item “Construction in Progress” and shall berecognized as a fixed asset when the completed security project reaches the intended usable state. Moreover, thespecial reserves shall be written down upon the cost of the formed fixed assets, and the accumulated depreciationof 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 withinthe 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 decideto allocate resources to them and evaluate their performance;
3) It has access to accounting information of the component, such as its financial condition, operation resultand cash flow.VI. Taxes
1. Main tax categories and tax rates
| Tax category | Basis of taxation | Tax rate |
| Value-added tax | The value-added tax received is calculated on the basis of sales of goods and taxable service income calculated according to the tax law. After deducting the VAT paid allowed for the current period, the difference is VAT payable. | 13%、9%、6%[Note 1] |
| Excise (consumption) tax | Taxable sales (volume) | [Note 2] |
| Urban | Actual payment of turnover tax | 7%、5% |
| maintenance and construction tax | ||
| Enterprise income tax | Taxable income | [Note 3] |
| Property tax | The remaining value after deducting 30% from the original value of the property in one go for ad valorem collection; the rental income for rent based collection. | 1.2%、12% |
| Education surcharge | Actual payment of turnover tax | 3% |
| Local education surcharge | Actual payment of turnover tax | 2% |
[Note 1] VAT is calculated and paid at the tax rate of 13% for goods sold. Rental income and sales ofliquefied petroleum gas and steam shall be subject to VAT at the rate of 9%. Warehousing services and otherbusinesses and interest income shall be subject to VAT at the rate of 6%. The policy of “tax exemption, credit andrefund” is implemented for export goods, and the export tax rebate rate is 13%[Note 2] Sales of fuel oil, diesel and aviation kerosene are subject to consumption tax at RMB 1.2 yuan/liter.Sales of gasoline and naphtha are subject to consumption tax at RMB 1.52 yuan/liter.
[Note 3] Explanation for enterprise income tax rate of taxpayers at different tax rates
| Taxpayers | Income tax rate |
| The subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd., Zhejiang Yongsheng Technology Co., Ltd. | 15% |
| The subsidiaries Hong Kong Sheng Hui Limited, Hong Kong Yi Sheng Da Hua Co., Limited, Yisheng New Materials Trading Co., Limited, Rongsheng Petrochemical (Hong Kong) Limited, Rongsheng Petrochemical (Singapore) Pte. Ltd., Rongtong Logistics (Singapore) Pte. Ltd., Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd. | The tax shall be calculated and paid according to the relevant tax rates of the country and region where the business is located. |
| The subsidiaries Rongxiang Chemical Fiber Co., Ltd., Rongsheng International Trade (Hainan) Co., Ltd., Dalian Yisheng New Materials Co., Ltd., Zhejiang Rongyi Trading Co., Ltd. | 20% |
| 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 onNaphth 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 forEthylene Aromatic Chemical Products from Naphth and Fuel Oil by the Ministry of Finance, People’s Bank ofChina, General Administration of Customs and State Taxation Administration (No. 2 [2013] of the Ministry ofFinance), the Interim Measures for the Refund (Exemption) of Consumption Tax for Naphth and Fuel Oil Used inthe 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 ofConsumption Tax for Ethylene and Aromatic Chemical Products from Naphth and Fuel Oil by the StateAdministration of Taxation and General Administration of Customs (Announcement No. 29 of 2013 of the StateAdministration of Taxation and the General Administration of Customs), in the case that the production enterpriseimplementing 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 fromconsumption tax. The subsidiaries Ningbo Zhongjin Petrochemical Co., Ltd. and Zhejiang Petroleum & ChemicalCo., Ltd. are qualified for the tax refund, and the preferential policy of refunding consumption tax paid in theprocurement 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, andthe 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 bythe Ministry of Finance and State Administration of Taxation (No. 11 [2015] of the Ministry of Finance), the unitconsumption tax of diesel, aviation kerosene and fuel oil increase from RMB 1.1/L to RMB 1.2/L, and suspensionof consumption tax continues to apply in aviation kerosene. The subsidiary Zhejiang Petroleum & Chemical Co.,Ltd. enjoys the preferential policy of suspension of consumption tax for selling aviation kerosene.
2. According to the Announcement on Deepening the Reform of Value-added Tax of the Ministry of Finance,the State Administration of Taxation and the General Administration of Customs (Announcement No.39 of 2019of the General Administration of Taxation of the Ministry of Finance) and the Announcement on FurtherStrengthening the Implementation of the Tax Refund Policy for Value-added Tax at the End of the Period of theMinistry of Finance and the State Administration of Taxation (Announcement No.14 of 2022 of the Ministry ofFinance and the State Administration of Taxation), the tax refund system for value-added tax at the end of theperiod was tried out on April 1, 2019. The Company and part of its subsidiaries meet the relevant conditions, andreceived credit refund totaling 391.36 million yuan in the current period.
3. According to the Announcement on Filing of High-tech Enterprises Recognized by Zhejiang ProvincialAccreditation Institutions in 2022 issued by the Office of the National High-tech Enterprise AccreditationManagement 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 EnterpriseCertificate numbered GR202233004307 and GR202233003797 respectively. The validity period of therecognition is 2022-2024, and the enterprise income tax is calculated and paid at a reduced rate of 15% in thecurrent period.
According to the Announcement on Filing the Third Batch of High-tech Enterprises Recognized by Dalian in2021 issued by the Office of the National High-tech Enterprise Recognition Management Leading Group, thesubsidiary Yisheng Dahua Petrochemical Co., Ltd. passed the high-tech enterprise accreditation and obtained theHigh-tech Enterprise Certificate with the number of GR202121200832, which is valid from 2021 to 2023. Theenterprise 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 NingboCity Authority in 2022 issued by the Office of the National High-tech Enterprise Recognition ManagementLeading Group, Ningbo Zhongjin Petrochemical Co., Ltd., a subsidiary, has passed the high-tech enterpriseaccreditation and obtained the High-tech Enterprise Certificate with the number of GR202233101251, with thevalidity period of 2022-2024. The enterprise income tax is calculated and paid at the reduced tax rate of 15% inthe current period.
According to the Announcement on the Filing of the First Batch of High-tech Enterprises Recognized inZhejiang Province in 2021 issued by the Office of the National High-tech Enterprise Recognition ManagementLeading 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. Therecognition period is from 2021 to 2023, and the enterprise income tax is calculated and paid at a reduced rate of15% in this period.
4. Pursuant to the Announcement on Preferential Income Tax Policies for Further Support for Developmentof Small Enterprises with Meager Profit and Individually-owned Businesses (Announcement of the MOF andSTA [2023] No. 12), the preferential policy under which the enterprise income tax of small enterprises withmeager profit is levied at 20% based on 25% of taxable income will be extended until December 31, 2027. Thesubsidiaries Rongxiang Chemical Fiber Co., Ltd., Rongsheng International Trade (Hainan) Co., Ltd., DalianYisheng New Materials Co., Ltd. and Zhejiang Rongyi Trading Co., Ltd. meet the above requirements in the
current period. Urban maintenance and construction tax, education surcharge and local education surcharge forsmall enterprises with meager profit are reduced by half and the subsidiary Dalian Yisheng New Materials Co.,Ltd. meets the above requirements in the current period.
5. According to the Announcement on the Policy of Adding and Deducting Value-added Tax for AdvancedManufacturing Enterprises of the Ministry of Finance and State Taxation Administration（ Announcement No.43of the Ministry of Finance and the State Administration of Taxation in 2023）, from January 1, 2023 to December31, 2027, advanced manufacturing enterprises are allowed to add 5% to the deductible input tax for offsetting thepayable value-added tax in the current period. In the current period, subsidiaries Zhejiang Shengyuan ChemicalFiber Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., ZhejiangPetroleum & Chemical Co., Ltd. and Zhejiang Yongsheng Technology Co., Ltd. are entitled to the above-mentioned policy of adding and deducting.
6. According to the Notice On Issues Related to the Implementation of the Preferential Catalogue ofEnterprise Income Tax for Special Equipment of Environmental Protection, the Preferential Catalogue ofEnterprise Income Tax for Special Equipment of Energy and Water Conservation and the Preferential Catalogueof Enterprise Income Tax for Special Equipment of Work Safety (No. 48 [2008] of the Ministry of Finance), forthe special equipment purchased by the Company that can be used for environmental protection, energy and waterconservation, safe production and other purposes, the enterprise income tax payable of the current year can bededucted by 10% of the equipment investment. If the tax payable of the enterprise in the current year isinsufficient for credit, it can be carried forward to the next year, and the carryforward period shall not exceed fivetax years. The subsidiaries Yisheng Dahua Petrochemical Co., Ltd. and Zhejiang Petroleum & Chemical Co., Ltd.have purchased these special equipment and enjoy such preferential policy.
7. According to the Implementation Opinions of the Office of the People’s Government of Xiaoshan District,Hangzhou on Deepening the Reform of "Heroes per Mu" and Promoting High Quality Development (XZBF [2020]No. 38), Class A enterprises can enjoy 100% reduction and exemption of land use tax. The Company and itssubsidiary, Zhejiang Shengyuan Chemical Fiber Co., Ltd., meet the requirements of the above preferential taxpolicies, and are fully exempt from land use tax in this period.
8. According to Article 6 of the Provisional Regulations of the People's Republic of China on Real EstateTax (Guo Fa [1986] No.90), if taxpayers really have difficulties in paying taxes, they may be determined by thepeople's governments of provinces, autonomous regions and municipalities directly under the Central Governmentto reduce or exempt the real estate tax on a regular basis. After approval and confirmation, the Company hasreduced the property tax by 60% in this period.VII. Notes to Items in the Consolidated Financial Statements
1. Monetary fund
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 1,499,665.59 | 947,398.91 |
| Bank deposit | 11,121,148,364.87 | 14,971,568,361.00 |
| Other monetary funds | 1,947,607,435.56 | 3,266,258,620.30 |
| Total | 13,070,255,466.02 | 18,238,774,380.21 |
| Including: Total amount of overseas deposits | 2,007,064,372.61 | 2,459,323,215.90 |
Other information:
Among other monetary funds at the end of the period, RMB 771,727,000 is the deposit made for issuingbank acceptance bills, RMB 561,350,000 is the deposit made for issuing letters of credit, RMB 250,000,000 is thedeposit made for handling bank loans, RMB 364,202,900 is deposited investment funds, RMB 1,000 is ETCdeposit, RMB 322,300 is the deposit interest accrued based on the effective interest rate method at the end of theperiod, and RMB 4200 is the balance deposited by the Company in a third-party payment platform.
2. Trading financial assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Financial assets at fair value through gain and loss | 310,087,429.45 | 188,283,362.49 |
| Including: derivative financial assets | 310,087,429.45 | 188,283,362.49 |
| Total | 310,087,429.45 | 188,283,362.49 |
3. Accounts receivable
(1) Disclosure by aging
Unit: RMB
| Aging | Ending book balance | Beginning book balance |
| Within 1 year (inclusive of 1 year) | 4,552,918,612.20 | 7,214,189,761.39 |
| 1-2 years | 293,966,484.61 | 42,530,303.66 |
| 2-3 years | 41,283,731.68 | 405,988.15 |
| Above 3 years | 387,649.73 | 34,813.65 |
| Total | 4,888,556,478.22 | 7,257,160,866.85 |
(2) Classified disclosure by bad debt accrual method
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Bad-debt provision | Book value | Book balance | Bad-debt provision | Book value | |||||
| Amount | Ratio | Amount | Provision proportion | Amount | Ratio | Amount | Provision proportion | |||
| Accounts receivable with provision for bad debt reserves based on aging portfolio | 4,888,556,478.22 | 100.00% | 150,822,774.56 | 3.09% | 4,737,733,703.66 | 7,257,160,866.85 | 100.00% | 129,149,819.82 | 1.78% | 7,128,011,047.03 |
| Total | 4,888,556,478.22 | 100.00% | 150,822,774.56 | 3.09% | 4,737,733,703.66 | 7,257,160,866.85 | 100.00% | 129,149,819.82 | 1.78% | 7,128,011,047.03 |
Accounts receivable with provision for bad debt reserves based on aging portfolio:
Unit: RMB
| Name | Closing balance | ||
| Book balance | Bad-debt provision | Provision proportion | |
| Trade fund portfolio of overseas subsidiaries | 2,801,455,036.87 | 21,080,178.11 | 0.75 |
| Aging portfolio | 2,087,101,441.35 | 129,742,596.45 | 6.22 |
| Subtotal | 4,888,556,478.22 | 150,822,774.56 | 3.09 |
If the provision for bad debts of accounts receivable is accrued according to the general model of expected creditloss:
□Applicable ?Not applicable
(3) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RMB
| Category | Opening balance | The amount of change in the current period | Closing balance | |||
| Provision | Recovered or returned | Write-off | Others | |||
| Provision made for bad debt reserves based on aging portfolio | 129,149,819.82 | 78,901,531.02 | 57,228,576.28 | 150,822,774.56 | ||
| Total | 129,149,819.82 | 78,901,531.02 | 57,228,576.28 | 150,822,774.56 | ||
Note: Other changes refer to transfer-out of provision for bad debts of the subsidiary Zhoushan YushanPetrochemical Engineering Co., Ltd., which was excluded from the consolidation scope as its equity wastransferred out by the Company in the current period.
(4) Accounts receivables and contract assets with top 5 closing balances by debtor
Unit: RMB
| Company name | Closing balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Proportion of accounts receivable and total closing balance of contract assets | Closing balance of bad debt provision for accounts receivable and impairment provision of contract assets |
| Sinopec Sales Co., Ltd. East China Branch | 966,035,917.72 | 966,035,917.72 | 19.76% | 48,301,795.89 | |
| Zhejiang Haigang International Trade Co., Ltd. | 642,755,025.00 | 642,755,025.00 | 13.15% | ||
| ENEOS CORPORATION | 353,557,524.80 | 353,557,524.80 | 7.23 | ||
| Sinopec Chemical Commercial Holding Company Limited East China Branch | 331,346,967.46 | 331,346,967.46 | 6.78 | 16,567,348.37 |
| Zhejiang Yisheng Petrochemical Co., Ltd. | 317,158,242.68 | 317,158,242.68 | 6.49% | 38,391,748.43 | |
| Total | 2,610,853,677.66 | 2,610,853,677.66 | 53.41% | 103,260,892.69 |
4. Receivables financing
(1) Classified presentation of receivables financing
Unit: RMB
| Item | Closing balance | Opening balance |
| Banker’s acceptance | 175,036,242.93 | 187,298,909.35 |
| Total | 175,036,242.93 | 187,298,909.35 |
(2) Receivable financing pledged by the Company at the end of the period
Unit: RMB
| Item | Pledged amount at the end of the period |
| Banker’s acceptance | 263,131.23 |
| Total | 263,131.23 |
(3) Receivables financing endorsed or discounted by the company at the end of the period and not expiredyet on the balance sheet date
Unit: RMB
| Item | Amount with recognition terminated at the end of the period | Amount with recognition not terminated at the end of the period |
| Banker’s acceptance | 2,482,403,194.70 | 0.00 |
| Total | 2,482,403,194.70 | 0.00 |
5. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 4,510,228,597.49 | 4,262,221,292.97 |
| Total | 4,510,228,597.49 | 4,262,221,292.97 |
1) Classification of other receivables by nature
Unit: RMB
| Nature of account | Ending book balance | Beginning book balance |
| Portfolio grouped with government funds receivable | 4,013,740,226.69 | 3,670,422,597.36 |
| Portfolio grouped with settlement funds of paper trade | 60,243,144.32 | 126,333,617.88 |
| Portfolio grouped with deposits for borrowings | 85,908,960.00 | 145,908,960.00 |
| Portfolio grouped with futures margin | 317,793,118.68 | 272,529,752.95 |
| Portfolio grouped with security deposits | 34,082,287.67 | 41,469,354.87 |
| Portfolio grouped with petty cash receivable, etc. | 26,389,252.01 | 13,736,810.60 |
| Portfolio grouped with intercompany balances | 10,810,665.07 | 5,383,742.27 |
| Total | 4,548,967,654.44 | 4,275,784,835.93 |
2) Disclosure by aging
Unit: RMB
| Aging | Ending book balance | Beginning book balance |
| Within 1 year (inclusive of 1 year) | 2,890,584,356.52 | 4,114,598,428.50 |
| 1-2 years | 1,565,488,732.75 | 47,417,515.49 |
| 2-3 years | 44,802,241.88 | 82,314,027.88 |
| Above 3 years | 48,092,323.29 | 31,454,864.06 |
| Total | 4,548,967,654.44 | 4,275,784,835.93 |
3) Classified disclosure by bad debt accrual method
?Applicable □Not applicable
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Bad-debt provision | Book value | Book balance | Bad-debt provision | Book value | |||||
| Amount | Ratio | Amount | Provision proportion | Amount | Ratio | Amount | Provision proportion | |||
| Provision made for bad debt reserves based on aging portfolio | 4,548,967,654.44 | 100.00% | 38,739,056.95 | 0.85% | 4,510,228,597.49 | 4,275,784,835.93 | 100.00% | 13,563,542.96 | 0.32% | 4,262,221,292.97 |
| Total | 4,548,967,654.44 | 100.00% | 38,739,056.95 | 0.85% | 4,510,228,597.49 | 4,275,784,835.93 | 100.00% | 13,563,542.96 | 0.32% | 4,262,221,292.97 |
Provision for bad debts on a collective basis: RMB 38,739,056. 95.Other receivables with provision for bad debts on a collective basis
Unit: RMB
| Name | Closing balance | ||
| Book balance | Bad-debt provision | Provision proportion | |
| Portfolio grouped with government funds receivable | 4,013,740,226.69 | 18,451,888.00 | 0.46% |
| Portfolio grouped with settlement funds of paper | 60,243,144.32 | ||
| trade | |||
| Portfolio grouped with deposits for borrowings | 85,908,960.00 | ||
| Portfolio grouped with futures margin | 317,793,118.68 | ||
| Portfolio grouped with security deposits | 34,082,287.67 | 12,161,873.18 | 35.68% |
| Portfolio grouped with petty cash receivable, etc. | 26,389,252.01 | 6,231,452.95 | 23.61% |
| Portfolio grouped with intercompany balances | 10,810,665.07 | 1,893,842.82 | 17.52% |
| Total | 4,548,967,654.44 | 38,739,056.95 | 0.85% |
Book balance changes with significant changes in loss provisions in the current period
□Applicable ?Not applicable
4) Provision for bad debts is made according to the general model of expected credit loss:
Unit: RMB
| Item | Stage 1 | Stage 2 | Stage 3 | Total |
| In the next 12 months Expected credit loss | Expected credit loss over the entire duration (without credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) | ||
| Amount at the beginning of the period | 1,518,350.96 | 878,119.54 | 11,167,072.46 | 13,563,542.96 |
| Amount at the beginning of the period | —— | —— | —— | |
| --Transferred to Stage 2 | -207,264.64 | 207,264.64 | ||
| --Transferred to Stage 3 | -616,592.19 | 616,592.19 | ||
| --Transferred to Stage 2 | ||||
| --Transferred to Stage 1 | ||||
| Provision in current period | 946,653.51 | 18,397,625.28 | 7,025,746.70 | 26,370,025.49 |
| Withdrawal or reversal in the current period | ||||
| Write-off in the current period | ||||
| Other changes [Note] | 1,194,511.50 | 1,194,511.50 | ||
| Amount at the end of the period | 2,257,739.83 | 18,866,417.27 | 17,614,899.85 | 38,739,056.95 |
Note: Other changes refer to transfer-out of provision for bad debts of the subsidiary Zhoushan YushanPetrochemical Engineering Co., Ltd., which was excluded from the consolidation scope as its equity wastransferred out by the Company in the current period.
5) Provision made, recovered or reversed for bad debts in the current period
Unit: RMB
| Category | Opening balance | The amount of change in the current period | Closing balance | |||
| Provision | Recovered or returned | Write-off or cancellation | Others | |||
| Provision made for bad debt reserves based on aging portfolio | 13,563,542.96 | 26,370,025.49 | 1,194,511.50 | 38,739,056.95 | ||
5) Top five debtors with the biggest closing balances of other accounts receivable
Unit: RMB
| Company name | Nature of payment | Closing balance | Aging | Proportion in total closing balance of other receivables | Closing balance of provision for bad debts |
| Consumption tax refund receivable | Tax refund receivables | 1,723,942,226.69 | Within 1 year | 37.90% | |
| Zhoushan Green Petrochemical Base Management Committee [Note 1] | Grants receivables | 1,545,798,000.00 | 1-2 year(s) | 33.98% | 18,451,888.00 |
| People’s government of Yinong Town, Xiaoshan District, Hangzhou [Note 2] | Grants receivables | 644,000,000.00 | Within 1 year | 14.16% | |
| Investment Promotion Agency of Xiaoshan District, Hangzhou [Note 2] | Grants receivables | 100,000,000.00 | Within 1 year | 2.20% | |
| Huarong Financial Leasing Co., Ltd. | Deposits for borrowings | 70,908,960.00 | 1-2 years, 2-3 years and over 3 years | 1.56% | |
| Subtotal | 4,084,649,186.69 | 89.80% | 18,451,888.00 |
Note 1: As of the date of approval for issuing the financial statements, the Company has received subsidies of500,000,000.00 yuan.Note 2: As of the date of approval for issuing the financial statements, the Company has received subsidies of744,000,000.00 yuan.
6. Advance payments
(1) Advance payments presented by age
Unit: RMB
| Aging | Closing balance | Opening balance | ||
| Amount | Ratio | Amount | Ratio | |
| Within 1 year | 1,433,838,902.86 | 96.02% | 2,522,481,841.45 | 98.61% |
| 1-2 years | 51,983,340.46 | 3.48% | 35,638,283.54 | 1.39% |
| 2-3 years | 7,490,222.54 | 0.50% | ||
| Total | 1,493,312,465.86 | 100.00% | 2,558,120,124.99 | 100.00% |
Explanation of the reasons why the prepayment with an age of more than one year and an important amount hasnot been settled in time:
At the end of the period, there are no significant prepayments with an age of more than one year
(2) Top five payers with the biggest closing balances of advance payments
| Debtors | Book balance | Proportion to the total balance of advances paid Proportion of balances (%) |
| Zhenhai Customs of the People’s Republic of China | 907,557,531.73 | 60.77 |
| PetroChina Company Limited Northeast Chemical Sales Liaoyang Branch | 92,189,143.83 | 6.17 |
| Dalian Fujia Dahua Petroleum & Chemical Co., Ltd. | 58,978,266.23 | 3.95 |
| Shanghai Huayi Energy Chemical Co., Ltd. | 38,162,703.30 | 2.56 |
| China-Base Ningbo Group Co., Ltd. | 35,500,000.02 | 2.38 |
| Subtotal | 1,132,387,645.11 | 75.83 |
7. Inventories
Whether the company is subject to disclosure requirements for the real estate industryNo
(1) Classification of inventories
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Inventory depreciation reserves or provision for impairment of contract performance cost | Book value | Book balance | Inventory depreciation reserves or provision for impairment of contract performance cost | Book value | |
| Raw materials | 38,274,190,347.56 | 339,286.40 | 38,273,851,061.16 | 38,684,253,387.46 | 216,055.92 | 38,684,037,331.54 |
| Products in process | 15,957,096,293.96 | 9,449,010.11 | 15,947,647,283.85 | 11,833,781,904.06 | 69,319,996.22 | 11,764,461,907.84 |
| Commodity stocks | 7,425,770,624.07 | 103,851,876.74 | 7,321,918,747.33 | 10,300,065,925.25 | 212,720,495.66 | 10,087,345,429.59 |
| Semi-finished products shipped in transit | 43,141,279.48 | 7,872,975.73 | 35,268,303.75 | |||
| Work in process - outsourced | 252,182.13 | 252,182.13 | 276,865.36 | 276,865.36 | ||
| Low-value consumables | 154,719,763.85 | 154,719,763.85 | 153,788,259.61 | 153,788,259.61 | ||
| Total | 61,855,170,491.05 | 121,513,148.98 | 61,733,657,342.07 | 60,972,166,341.74 | 282,256,547.80 | 60,689,909,793.94 |
(2) Provision for obsolete inventory or for impairment of the cost of contract performance
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | ||
| Provision | Others | Reversal or write-off | Others | |||
| Raw materials | 216,055.92 | 339,286.40 | 216,055.92 | 339,286.40 | ||
| Products in process | 69,319,996.22 | 9,449,010.11 | 69,319,996.22 | 9,449,010.11 | ||
| Commodity stocks | 212,720,495.66 | 103,851,876.74 | 212,720,495.66 | 103,851,876.74 | ||
| Semi-finished products shipped in transit | 7,872,975.73 | 7,872,975.73 | ||||
| Total | 282,256,547.80 | 121,513,148.98 | 282,256,547.80 | 121,513,148.98 | ||
(3) Other creditors investments due within one year
□Applicable ?Not applicable
8. Other current assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Input VAT to be credited | 4,338,748,642.91 | 1,131,926,010.21 |
| Prepaid enterprise income tax | 797,324.80 | 1,335,755,359.29 |
| Prepaid consumption tax | 957,583,006.60 | |
| Total | 5,297,128,974.31 | 2,467,681,369.50 |
9. Long-term equity investment
Unit: RMB
| Investee | Opening balance (book value) | Opening balance of impairment provision | Increase and decrease in the current period | Closing balance (book value) | Closing balance of provision for impairment | |||||||
| Additional investment | Reduced investment | Investment gains or losses recognized under the equity method | Other comprehensive income adjustments | Other equity changes | Declared distribution of cash dividends or profits | Provision for impairment | Others | |||||
| I. Joint ventures | ||||||||||||
| II. Associated enterprise | ||||||||||||
| Zhejiang Yisheng Petrochemical Co., Ltd. | 2,691,757,678.94 | 8,343,778.94 | 4,855,124.77 | 2704956582.65 | ||||||||
| Ningbo Hengyi Trading Co., Ltd. | 231,733,252.44 | -62,971,541.07 | -1,198,206.27 | 167563505.10 | ||||||||
| Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. | 2,006,079,840.15 | 266,060,316.74 | 33,144,430.66 | 39,685,918.80 | 2265598668.75 | |||||||
| Zhejiang Jurong Petroleum & Chemical Sales Co., Ltd. | 14,454,169.54 | 14,464,520.87 | 10,351.33 | |||||||||
| Zhejiang Kunsheng Petroleum & Chemical Sales Co., Ltd. | 13,221,013.56 | 19,212,208.79 | 5,991,195.23 | |||||||||
| Hainan Yisheng Petrochemical Co., Ltd. | 3,302,885,758.56 | 184,245,662.05 | -3,993,750.89 | 3483137669.72 | ||||||||
| ZPC-ENN (Zhoushan) Gas Co., Ltd. | 12,729,631.15 | -3,791,763.23 | 8937867.92 | |||||||||
| Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. | 32,038,237.54 | 11,756,366.33 | 43794603.87 | |||||||||
| Zhejiang Derong chemicals Co. Ltd. | 342,047,728.85 | 100,000,000.00 | -149,394,037.09 | 3,987,518.57 | 296641210.33 | |||||||
| Zhoushan ZPC Zhougang Tugboat Co., Ltd. | 61,965,559.46 | 18,805,907.31 | -15,827.98 | 6,500,000.00 | 74255638.79 | |||||||
| Ningbo Coastal Public Pipe Gallery Co., Ltd. | 6,301,526.09 | -789,822.69 | 5511703.40 | |||||||||
| Zhejiang Zhenshi Port Service Co., Ltd. | 18,115,410.07 | 3,886,184.41 | 22001594.48 | |||||||||
| Zhejiang Dongjiang Green Petrochemical Technology Innovation Center Co., Ltd. | 117,500,000.00 | -6,187,600.05 | 111312399.95 | |||||||||
| Subtotal | 8,733,329,806.35 | 217,500,000.00 | 33,676,729.66 | 275,964,998.21 | 32,807,598.27 | 3,971,690.59 | 46,185,918.80 | 9183711444.96 | ||||
| Total | 8,733,329,806.35 | 217,500,000.00 | 33,676,729.66 | 275,964,998.21 | 32,807,598.27 | 3,971,690.59 | 46,185,918.80 | 9183711444.96 | ||||
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□Applicable ?Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable ?Not applicable
10. Investment properties
(1) Investment real estate under the cost measurement mode
?Applicable □Not applicable
Unit: RMB
| Item | Houses and buildings | Land-use right | Construction in progress | 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. Closing balance | 14,286,632.00 | 14,286,632.00 | ||
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Initial balance | 3,619,611.40 | 3,619,611.40 | ||
| 2. Increase in the current period | 271,446.00 | 271,446.00 | ||
| (1) Accrual or amortization | 271,446.00 | 271,446.00 | ||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | 3,891,057.40 | 3,891,057.40 | ||
| III. Provision for impairment | ||||
| 1. Initial balance | ||||
| 2. Increase in the current period | ||||
| (1) Accrual | ||||
| 3. Decrease in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4. Closing balance | ||||
| IV. Book value |
| 1. Closing book value | 10,395,574.60 | 10,395,574.60 | ||
| 2. Beginning book value | 10,667,020.60 | 10,667,020.60 |
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□Applicable ?Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable ?Not applicable
(2) Investment real estate under the fair value method
□Applicable ?Not applicable
11. Fixed assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 219,699,679,397.52 | 222,161,110,736.65 |
| Liquidation of fixed assets | ||
| Total | 219,699,679,397.52 | 222,161,110,736.65 |
(1) Fixed assets
Unit: RMB
| Item | Housing and buildings | Machinery and equipment | Transportation facilities | Other equipment | Total |
| 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 current period | 1,363,425,105.57 | 11,407,943,199.68 | 11,364,166.00 | 27,820,672.64 | 12,810,553,143.89 |
| (1) Acquisition | 9,541,274.43 | 251,233,033.65 | 11,364,166.00 | 27,820,672.64 | 299,959,146.72 |
| (2) Transfer-in from construction in progress | 1,353,883,831.14 | 11,156,710,166.03 | 12,510,593,997.17 | ||
| (3) Increase due to business merger | |||||
| 3. Decrease in the current period | 133,226,322.21 | 6,376,671.31 | 2,894.33 | 139,605,887.85 | |
| (1) Disposal or scrapping | 30,662,219.64 | 4,810,299.63 | 2,894.33 | 35,475,413.60 | |
| 2) Decrease in combination scope | 102,564,102.57 | 1,566,371.68 | 104,130,474.25 | ||
| 4. Closing balance | 71,198,105,232.65 | 194,194,556,207.58 | 247,878,440.68 | 356,451,433.69 | 265,996,991,314.60 |
| 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 current period | 3,432,758,156.86 | 11,640,019,090.87 | 31,842,803.97 | 55,814,539.68 | 15,160,434,591.38 |
| (1) Accrual | 3,432,758,156.86 | 11,640,019,090.87 | 31,842,803.97 | 55,814,539.68 | 15,160,434,591.38 |
| 3. Decrease in the current period | 23,292,758.97 | 4,761,093.62 | 2,143.62 | 28,055,996.21 | |
| 1) Disposal or scrapping | 5,688,646.49 | 4,174,594.58 | 2,143.62 | 9,865,384.69 | |
| 2) Decrease in combination scope | 17,604,112.48 | 586,499.04 | 18,190,611.52 | ||
| 4. Closing balance | 8,802,448,426.77 | 37,023,289,144.10 | 198,473,039.46 | 261,561,634.53 | 46,285,772,244.86 |
| III. Provision for impairment | |||||
| 1. Initial balance | 11,539,672.22 | 11,539,672.22 | |||
| 2. Increase in the current period | |||||
| (1) Accrual | |||||
| 3. Decrease in the current period | |||||
| (1) Disposal or scrapping | |||||
| 4. Closing balance | 11,539,672.22 | 11,539,672.22 | |||
| IV. Book value | |||||
| 1. Closing book value | 62,395,656,805.88 | 157,159,727,391.26 | 49,405,401.22 | 94,889,799.16 | 219,699,679,397.52 |
| 2. Beginning book value | 64,464,989,857.17 | 157,501,736,845.69 | 71,499,616.88 | 122,884,416.91 | 222,161,110,736.65 |
(2) Fixed assets with the certificate of title not transacted
Unit: RMB
| Item | Book value | Reasons for incomplete certificates of title |
| Houses and buildings - tank farm, supporting buildings and others of ZPC | 5,586,274,849.79 | Still being processed |
| Houses and buildings - polymerization building and others of Zhejiang Shengyuan Chemical Fiber Co., Ltd. | 382,452,935.95 | Still being processed |
| Houses and buildings -office buildings and others of Yisheng Dahua Petrochemical Co., Ltd. | 282,711,153.86 | Still being processed |
| Houses and buildings -warehouse, supporting facilities and others of Zhejiang Yisheng New Materials Co., Ltd. | 166,325,102.40 | Still being processed |
| Houses and buildings -- flow shop of Zheyou Technology Co. Ltd. | 87,545,609.29 | Still being processed |
| Houses and buildings -film warehouse and others of Zhejiang Yongsheng Technology Co. Ltd. | 44,256,296.24 | Still being processed |
(3) Impairment test of fixed assets
□Applicable ?Not applicable
12. Construction in progress
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 40,987,208,589.89 | 24,590,757,677.89 |
| Engineering materials | 833,462,480.70 | 1,544,399,951.56 |
| Total | 41,820,671,070.59 | 26,135,157,629.45 |
(1) Construction in progress
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| 1.4 million tons ethylene and downstream chemical plant (optimization of product structure of Phase II project) | 15,402,756,124.76 | 15,402,756,124.76 | 14,276,035,763.50 | 14,276,035,763.50 | ||
| Utilities and supporting facilities | 14,708,733,890.06 | 14,708,733,890.06 | 6,020,862,104.28 | 6,020,862,104.28 | ||
| Functional polyester film expansion project with an annual output of 250,000 tons per year | 1,206,752,266.57 | 1,206,752,266.57 | 967,377,971.40 | 967,377,971.40 | ||
| High performance resin project | 2,930,448,031.11 | 2,930,448,031.11 | 446,159,950.48 | 446,159,950.48 | ||
| High-end new material project | 888,295,228.78 | 888,295,228.78 | 17,358,490.59 | 17,358,490.59 | ||
| Jintang New Material Project | 507,816,831.97 | 507,816,831.97 | 41,739,407.97 | 41,739,407.97 | ||
| Sporadic projects | 5,342,406,216.64 | 5,342,406,216.64 | 2,821,223,989.67 | 2,821,223,989.67 | ||
| Total | 40,987,208,589.89 | 40,987,208,589.89 | 24,590,757,677.89 | 24,590,757,677.89 | ||
(2) Changes in major construction in progress in the current period
Unit: RMB
| Project | Budget | Opening balance | Increase in the current period | Amount of fixed assets carried over in the current period | Other decreases in the current period | Closing balance | Percentage of the actual cost to budget (%) | Project progress | Accumulated capitalized amount of interest | Including: Capitalized amount of interest in the current period | Interest capitalization rate in the current period | Sources of fund |
| 1.4 million tons ethylene and | 34,485,170,000.00 | 14,276,035,763.50 | 6,393,573,516.43 | 5,266,853,155.17 | 15,402,756,124.76 | 94.53% | 90% | 845,244,407.54 | 585,336,414.92 | 3.58% | Bank loans, other sources |
| downstream chemical plant (optimization of product structure of Phase II project) | ||||||||||||
| Utilities and supporting facilities | 6,020,862,104.28 | 15,454,740,317.93 | 6,766,868,532.15 | 14,708,733,890.06 | 444,307,862.46 | 196,017,367.28 | 3.38% | Bank loans, other sources | ||||
| High performance resin project | 18,275,500,000.00 | 446,159,950.48 | 2,484,288,080.63 | 2,930,448,031.11 | 18.12% | 18% | 30,989,557.60 | 30,989,557.60 | 3.28% | Bank loans, other sources | ||
| Total | 52,760,670,000.00 | 20,743,057,818.26 | 24,332,601,914.99 | 12,033,721,687.32 | 33,041,938,045.93 | 1,320,541,827.60 | 812,343,339.80 |
(3) Impairment test of construction in progress
□Applicable ?Not applicable
(4) Engineering materials
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Special materials | 507,367,195.93 | 507,367,195.93 | 1,170,107,409.07 | 1,170,107,409.07 | ||
| Special Equipment | 326,095,284.77 | 326,095,284.77 | 374,292,542.49 | 374,292,542.49 | ||
| Total | 833,462,480.70 | 833,462,480.70 | 1,544,399,951.56 | 1,544,399,951.56 | ||
13. Right-of-use assets
(1) Situation of right-of-use assets
Unit: RMB
| Item | Housing and buildings | Total |
| I. Original book value | ||
| 1. Initial balance | 290,265,617.88 | 290,265,617.88 |
| 2. Increase in the current period | ||
| 3. Decrease in the current period | 5,061,872.72 | 5,061,872.72 |
| Disposal | 5,061,872.72 | 5,061,872.72 |
| 4. Closing balance | 285,203,745.16 | 285,203,745.16 |
| II. Accumulated depreciation |
| 1. Initial balance | 64,658,849.54 | 64,658,849.54 |
| 2. Increase in the current period | 25,504,627.18 | 25,504,627.18 |
| (1) Accrual | 25,504,627.18 | 25,504,627.18 |
| 3. Decrease in the current period | 5,061,872.72 | 5,061,872.72 |
| (1) Disposal | 5,061,872.72 | 5,061,872.72 |
| 4. Closing balance | 85,101,604.00 | 85,101,604.00 |
| III. Provision for impairment | ||
| 1. Initial balance | ||
| 2. Increase in the current period | ||
| (1) Accrual | ||
| 3. Decrease in the current period | ||
| (1) Disposal | ||
| 4. Closing balance | ||
| IV. Book value | ||
| 1. Closing book value | 200,102,141.16 | 200,102,141.16 |
| 2. Beginning book value | 225,606,768.34 | 225,606,768.34 |
(2) Impairment test of right-of-use assets
□Applicable ?Not applicable
14. Intangible assets
(1) Intangible assets
Unit: RMB
| Item | Land-use right | Know-how | Management software | Pollution dumping right | Sea area use right | Total |
| I. Original book value | ||||||
| 1. Initial balance | 6,628,695,167.07 | 5,879,510.85 | 59,311,084.87 | 131,600,298.14 | 26,848,149.00 | 6,852,334,209.93 |
| 2. Increase in the current period | 1,387,072,144.80 | 1,136,106.22 | 11,629,814.94 | 1,399,838,065.96 | ||
| (1) Acquisition | 1,387,072,144.80 | 1,136,106.22 | 11,629,814.94 | 1,399,838,065.96 | ||
| (2) Internal R&D | ||||||
| (3) Increase due to business merger | ||||||
| 3. Decrease in the current period | 94,178,868.60 | 18,215,610.00 | 112,394,478.60 | |||
| (1) Decrease in combination scope | 94,178,868.60 | 18,215,610.00 | 112,394,478.60 | |||
| 4. Closing balance | 7,921,588,443.27 | 5,879,510.85 | 60,447,191.09 | 113,384,688.14 | 38,477,963.94 | 8,139,777,797.29 |
| II. Accumulated amortization |
| 1. Initial balance | 705,649,558.22 | 4,354,353.66 | 22,900,082.84 | 105,115,117.48 | 16,543,216.61 | 854,562,328.81 |
| 2. Increase in the current period | 160,768,891.69 | 188,679.24 | 6,134,136.61 | 11,067,070.62 | 4,065,503.32 | 182,224,281.48 |
| (1) Accrual | 160,768,891.69 | 188,679.24 | 6,134,136.61 | 11,067,070.62 | 4,065,503.32 | 182,224,281.48 |
| 3. Decrease in the current period | 11,615,393.73 | 14,323,831.71 | 25,939,225.44 | |||
| (1) Decrease in combination scope | 11,615,393.73 | 14,323,831.71 | 25,939,225.44 | |||
| 4. Closing balance | 854,803,056.18 | 4,543,032.90 | 29,034,219.45 | 101,858,356.39 | 20,608,719.93 | 1,010,847,384.85 |
| III. Provision for impairment | ||||||
| 1. Initial balance | ||||||
| 2. Increase in the current period | ||||||
| (1) Accrual | ||||||
| 3. Decrease in the current period | ||||||
| (1) Disposal | ||||||
| 4. Closing balance | ||||||
| IV. Book value | ||||||
| 1. Closing book value | 7,066,785,387.09 | 1,336,477.95 | 31,412,971.64 | 11,526,331.75 | 17,869,244.01 | 7,128,930,412.44 |
| 2. Beginning book value | 5,923,045,608.85 | 1,525,157.19 | 36,411,002.03 | 26,485,180.66 | 10,304,932.39 | 5,997,771,881.12 |
(2) Impairment test of intangible assets
□Applicable ?Not applicable
15. Long-term deferred expenses
Unit: RMB
| Item | Opening balance | Increase in the current period | Amortization amount in the current period | Other reductions | Closing balance |
| Improvement expense for fixed assets rented through operating lease | 117,159.13 | 71,458.00 | 45,701.13 | ||
| Total | 117,159.13 | 71,458.00 | 45,701.13 |
16. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Provision for impairment of assets | 246,050,247.19 | 42,463,572.53 | 359,105,143.75 | 59,820,985.40 |
| Unrealized profits from internal transactions | 63,697,197.61 | 13,460,223.08 | 174,649,487.88 | 7,817,620.70 |
| Deductible unrecovered losses | 6,398,196,587.74 | 1,157,432,552.84 | 1,926,924,516.34 | 322,308,341.68 |
| Deferred income | 186,812,473.21 | 28,932,982.09 | 186,228,230.49 | 30,561,612.33 |
| Lease liabilities | 195,424,408.50 | 29,313,661.28 | 208,086,032.91 | 31,212,904.94 |
| Changes in fair value of trading financial instruments and derivative financial instruments | 137,921,940.29 | 21,006,601.04 | 103,171,027.61 | 16,689,662.09 |
| Total | 7,228,102,854.54 | 1,292,609,592.86 | 2,958,164,438.98 | 468,411,127.14 |
(2) Deferred income tax liabilities before offset
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Taxable temporary differences | Deferred income tax liabilities | Taxable temporary differences | Deferred income tax liabilities | |
| Changes in fair value of trading financial instruments and derivative financial instruments | 309,098,071.08 | 49,549,153.55 | 188,283,362.48 | 14,181,961.06 |
| Right-of-use assets | 184,427,099.32 | 27,664,064.90 | 200,234,007.34 | 30,035,101.10 |
| The parent company, reflected at the level of consolidated statements, invests the loan as paid-in capital into the subsidiary company, which serves as the loan interest for the capitalization of long-term asset construction. | 2,147,934,662.52 | 326,849,061.47 | 2,232,554,629.20 | 334,883,194.38 |
| One time pre-tax deduction of long-term assets | 10,872,084,425.53 | 1,630,812,663.83 | 10,979,341,858.26 | 1,646,901,278.74 |
| Government grants | 744,000,000.00 | 186,000,000.00 | ||
| Total | 14,257,544,258.45 | 2,220,874,943.75 | 13,600,413,857.28 | 2,026,001,535.28 |
(3) Deferred tax assets or liabilities, net of offsets
Unit: RMB
| Item | Amount of deferred tax assets and liabilities offset at the end of the period | Closing balance of deferred tax assets or liabilities after offsetting | Deferred tax assets and liabilities offset at the beginning of period | Opening balance of deferred tax assets or liabilities after offsetting |
| Deferred income tax assets | 601,800,714.78 | 690,808,878.08 | 70,030,134.16 | 398,380,992.98 |
| Deferred income tax liabilities | 601,800,714.78 | 1,619,074,228.97 | 70,030,134.16 | 1,955,971,401.12 |
(4) Details of unrecognized deferred tax assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible loss | 3,808,384,773.87 | 4,786,039,765.48 |
| Changes in fair value of trading financial instruments and derivative financial instruments | 74,162,385.08 | 74,384,267.98 |
| Deferred income | 8,769,120.04 | 9,434,323.24 |
| Unrealized profits from internal transactions | ||
| Provision for impairment of assets | 26,285,676.35 | 77,404,439.05 |
| Lease liabilities | 18,116,777.97 | 27,604,783.67 |
| Total | 3,935,718,733.31 | 4,974,867,579.42 |
(5) The deductible losses of unrecognized deferred income tax assets will be due in the following years
Unit: RMB
| Year | Ending amount | Beginning amount |
| 2023 | 795,881,505.75 | |
| 2024 | 585,681,449.15 | 649,192,751.95 |
| 2025 | 869,483,144.03 | 892,628,563.63 |
| 2026 | 852,380,510.77 | 942,842,859.62 |
| 2027 | 1,094,661,596.29 | 1,098,455,315.24 |
| 2028 | 406,178,073.63 | |
| 2029 | ||
| 2030 | ||
| 2031 | ||
| 2032 | 407,038,769.29 | |
| 2033 | ||
| Total | 3,808,384,773.87 | 4,786,039,765.48 |
17. Other non-current assets
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Prepayment for purchase of long-term assets | 4,445,441,053.45 | 4,445,441,053.45 | 2,794,937,800.46 | 2,794,937,800.46 | ||
| Rental value of silver leased in | 411,214,415.96 | 411,214,415.96 | 411,214,415.96 | 411,214,415.96 | ||
| Total | 4,856,655,469.41 | 4,856,655,469.41 | 3,206,152,216.42 | 3,206,152,216.42 | ||
18. Assets with restricted ownership or use rights
Unit: RMB
| Item | Period end | Period beginning | ||||||
| Book balance | Book value | Restriction type | Restriction situation | Book balance | Book value | Restriction type | Restriction situation | |
| Monetary fund | 1,583,400,368.50 | 1,583,400,368.50 | Deposit occupation | Issue letters of credit, bills, letters of guarantee, borrowings and other deposits | 2,779,494,576.43 | 2,779,494,576.43 | Deposit occupation | Issue letters of credit, bills, letters of guarantee, borrowings, silver leases and other deposits |
| Accounts receivable financing | 263,131.23 | 263,131.23 | Pledge | Issue bill pledge | 3,316,973.51 | 3,316,973.51 | Pledge | Issue bill pledge |
| Fixed assets | 226,875,011,143.49 | 194,464,280,744.52 | Mortgage | Bank loan mortgage, letter of credit mortgage | 217,071,880,411.54 | 197,784,460,482.89 | Mortgage | Bank loan mortgage, letter of credit mortgage |
| Intangible assets | 5,608,715,198.07 | 5,135,074,543.17 | Mortgage | Bank loan mortgage, letter of credit mortgage | 4,409,441,534.82 | 4,043,802,390.99 | Mortgage | Bank loan mortgage, letter of credit mortgage |
| Construction in progress | 29,889,674,426.59 | 29,889,674,426.59 | Mortgage | Bank loan mortgage, letter of credit mortgage | 20,075,082,279.55 | 20,075,082,279.55 | Mortgage | Bank loan mortgage, letter of credit mortgage |
| Total | 263,957,064,267.88 | 231,072,693,214.01 | 244,339,215,775.85 | 224,686,156,703.37 | ||||
19. Short-term borrowings
(1) Categories of short-term borrowings
Unit: RMB
| Item | Closing balance | Opening balance |
| Mortgage borrowing | 198,000,000.00 | |
| Guaranteed loan | 43,817,771,706.43 | 24,978,544,183.97 |
| Credit borrowings | 795,165,061.51 | 1,391,008,216.53 |
| Total | 44,810,936,767.94 | 26,369,552,400.50 |
20. Trading financial liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Trading financial liabilities | 623,298,741.33 | 588,769,711.55 |
| Including: derivative financial liabilities | 78,931,785.08 | 102,366,489.48 |
| Including: fair value of silver leased | 544,366,956.25 | 486,403,222.07 |
| Total | 623,298,741.33 | 588,769,711.55 |
21. Notes payable
Unit: RMB
| Category | Closing balance | Opening balance |
| Banker’s acceptance | 4,195,471,402.63 | 3,408,800,462.03 |
| Total | 4,195,471,402.63 | 3,408,800,462.03 |
22. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Payable for material procurement and operation | 39,250,503,194.27 | 57,051,576,225.73 |
| Payable for purchase of long-term assets | 10,493,623,707.11 | 12,027,790,750.70 |
| Total | 49,744,126,901.38 | 69,079,366,976.43 |
23. Other payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividends payable | 228,000,000.00 | 108,000,000.00 |
| Other payables | 16,691,133,504.47 | 3,364,604,671.47 |
| Total | 16,919,133,504.47 | 3,472,604,671.47 |
(1) Dividends payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividends payable on ordinary shares by subsidiaries | 228,000,000.00 | 108,000,000.00 |
| Total | 228,000,000.00 | 108,000,000.00 |
(2) Other payables
1) Other payables listed by the nature of payment
Unit: RMB
| Item | Closing balance | Opening balance |
| Entrusted loan | 787,149,197.50 | 989,433,904.99 |
| Current accounts | 14,776,720,257.46 | 1,539,513,447.19 |
| Deposit and security | 826,693,128.75 | 718,412,933.85 |
| Settled but unpaid operating expenses | 278,440,701.05 | 98,302,534.15 |
| Others | 22,130,219.71 | 18,941,851.29 |
| Total | 16,691,133,504.47 | 3,364,604,671.47 |
24. Contract liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Loans | 4,421,732,432.83 | 3,734,262,391.81 |
| Total | 4,421,732,432.83 | 3,734,262,391.81 |
25. Employee remuneration payable
Presentation of employee remuneration payable
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| I. Short-term remuneration | 1,014,193,651.21 | 3,698,131,648.59 | 3,693,064,746.53 | 1,019,260,553.27 |
| II. Post-employment benefits - defined contribution plan | 8,517,450.91 | 141,909,234.78 | 137,466,462.40 | 12,960,223.29 |
| III. Dismissal welfare | 234,554.24 | 234,554.24 | ||
| Total | 1,022,711,102.12 | 3,840,275,437.61 | 3,830,765,763.17 | 1,032,220,776.56 |
(2) Short-term remuneration
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Wage, bonus, allowance and subsidy | 1,006,507,629.78 | 3,471,274,591.09 | 3,467,156,143.57 | 1,010,626,077.30 |
| 2. Employee welfare expenses | 21,636,006.73 | 21,636,006.73 | ||
| 3. Social insurance premium | 6,762,820.48 | 96,941,546.00 | 96,216,717.17 | 7,487,649.31 |
| Including: Medical insurance premium | 6,309,552.30 | 83,803,760.99 | 83,584,513.35 | 6,528,799.94 |
| Work-related injury insurance premium | 453,268.18 | 12,299,116.10 | 11,793,534.91 | 958,849.37 |
| 4. Housing provident fund | 234,695.00 | 78,548,229.76 | 78,491,970.76 | 290,954.00 |
| 5. Labor union and personnel education expenses | 688,505.95 | 29,731,275.01 | 29,563,908.30 | 855,872.66 |
| Total | 1,014,193,651.21 | 3,698,131,648.59 | 3,693,064,746.53 | 1,019,260,553.27 |
(3) Presentation of defined contribution plan
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| 1. Basic endowment insurance | 8,222,090.39 | 137,046,231.53 | 132,738,922.51 | 12,529,399.41 |
| 2. Unemployment insurance premium | 295,360.52 | 4,863,003.25 | 4,727,539.89 | 430,823.88 |
| Total | 8,517,450.91 | 141,909,234.78 | 137,466,462.40 | 12,960,223.29 |
26. Taxes payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Value-added tax | 7,837,443.46 | 406,455,280.68 |
| Excise (consumption) tax | 28,973,236.05 | 449,500,508.31 |
| Enterprise income tax | 61,736,590.18 | 248,997,237.28 |
| Individual income tax | 15,229,448.50 | 14,735,296.18 |
| Urban maintenance and construction tax | 29,773,987.02 | 64,611,829.70 |
| Property tax | 30,376,665.46 | 25,589,744.40 |
| Land use tax | 234,528,096.28 | 112,480,989.03 |
| Education surcharge | 12,775,359.01 | 59,958,124.53 |
| Local education surcharge | 8,518,206.02 | 39,972,113.03 |
| Environmental protection tax | 2,831,476.99 | 2,886,594.15 |
| Stamp duty | 40,489,040.73 | 38,152,661.15 |
| Deed tax | 3,711,618.00 | |
| Vehicle and vessel tax | 744.00 | |
| Total | 476,781,167.70 | 1,463,341,122.44 |
27. Non-current liabilities due within one year
(1) Details
Unit: RMB
| Item | Closing balance | Opening balance |
| Long-term borrowings due within one year | 28,229,063,293.47 | 20,439,097,358.80 |
| Bonds payable due within one year | 2,037,082,007.25 | |
| Lease liabilities due within one year | 20,538,874.09 | 22,290,420.13 |
| Total | 30,286,684,174.81 | 20,461,387,778.93 |
(2) Increase/decrease of bonds payable: (excluding preferred stock, perpetual bond and other financialinstruments classified as financial liabilities)
Unit: RMB
| Name of bond | Par value | Coupon rate | Issue date | Bond period | Issue amount | Opening balance | Issue in current period | Interest accrued by par value | Amortization of premiums | Repayment in current period | Closing balance | Default or not |
| or discounts | ||||||||||||
| 20 Rongsheng G1 | 1,000,000,000.00 | 3.86% | 2020.4.21、2020.4.22 | 4 years (2 + 2) | 995,452,830.20 | 1,029,195,433.12 | 38,643,870.23 | 1184252.61 | 38,600,000.00 | 1,030,423,555.96 | No | |
| 20 Rongsheng G2 | 1,000,000,000.00 | 3.45% | 2020.8.31、2020.9.01、2020.9.02 | This tranche of bonds has a maturity of 4 years, with the right to adjust the nominal interest rate by the issuer and sell back by the investor at the end of the second year. | 995,405,660.39 | 1,005,631,689.11 | 34,405,479.48 | 1121282.70 | 34,500,000.00 | 1,006,658,451.29 | No | |
| Total | —— | 1,990,858,490.59 | 2,034,827,122.23 | 73,049,349.71 | 2305535.31 | 73,100,000.00 | 2,037,082,007.25 | —— | ||||
28. Other current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Output tax to be transferred | 551,990,844.96 | 458,588,848.28 |
| Total | 551,990,844.96 | 458,588,848.28 |
29. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
| Item | Closing balance | Opening balance |
| Mortgage borrowing | 400,775,733.62 | |
| Guaranteed loan | 25,540,063,351.05 | 26,613,442,784.59 |
| Credit borrowings | 462,895,972.33 | 312,343,200.00 |
| Mortgage and guarantee borrowings | 98,775,848,764.18 | 104,036,600,984.70 |
| Total | 125,179,583,821.18 | 130,962,386,969.29 |
30. Bonds payable
(1) Bonds payable
Unit: RMB
| Item | Closing balance | Opening balance |
| Green corporate bonds (second tranche) | 1,029,195,433.12 |
| Green corporate bonds (third tranche) | 1,005,631,689.11 | |
| Total | 2,034,827,122.23 |
(2) Increase/decrease of bonds payable: (excluding preferred stock, perpetual bond and other financialinstruments classified as financial liabilities)
Please refer to section V (I) 27 (2) of notes to the financial statements for details of the changes
31. Lease liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Lease payments | 241,120,991.44 | 276,960,637.05 |
| Unacknowledged financial charges | -48,118,679.06 | -63,560,240.60 |
| Total | 193,002,312.38 | 213,400,396.45 |
32. Deferred income
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance | Reasons for incurrence |
| Government grants | 195,662,553.73 | 46,150,000.00 | 46,230,960.48 | 195,581,593.25 | Related to assets |
| Total | 195,662,553.73 | 46,150,000.00 | 46,230,960.48 | 195,581,593.25 | -- |
33. Share capital
Unit: RMB
| Opening balance | Increase and decrease of this change (+, -) | Closing balance | |||||
| New issue of shares | Issue of bonus shares | Conversion of provident fund into shares | Others | Subtotal | |||
| Total number of shares | 10,125,525,000 | 10,125,525,000 | |||||
34. Capital reserves
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Capital premium (equity premium) | 10,779,726,139.51 | 10,779,726,139.51 | ||
| Other capital reserves | 42,868,373.88 | 2,727,745.97 | 45,596,119.85 | |
| Total | 10,822,594,513.39 | 2,727,745.97 | 10,825,322,259.36 |
Other notes, including notes to increase and decrease in the current period and its reasons:
1) Due to changes in equity of associates other than net profit or loss, other comprehensive income and profit
distribution, capital reserve (other capital reserve) was increased by 2,025,562.21 yuan based on the Company’sholding proportion.
2) Due to the disposal of certain equity of Rongsheng New Materials (Taizhou) Co., Ltd., capital reserve(other capital reserve) was increased by 702,183.76 yuan at the difference between the consideration of28,325,460.00 yuan and the share in net assets of the subsidiary of 27,623,276.24 yuan based on disposedproportion.
35. Treasury stock
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Repurchase of public shares | 3,978,202,364.65 | 2,641,604,811.37 | 6,619,807,176.02 | |
| Total | 3,978,202,364.65 | 2,641,604,811.37 | 6,619,807,176.02 |
Other notes, including notes to increase and decrease in the current period and its reasons:
Pursuant to the “Proposal on Repurchasing the Company’s Shares” deliberated and approved by the 21stmeeting of the fifth session of the Board of Directors dated March 15, 2022, the Company was agreed torepurchase part of its public shares using self-owned funds through centralized bidding transactions for thepurpose of conversion of the Company’s convertible corporate bonds into shares. The total amount of repurchasefunds was not less than 1 billion yuan (inclusive) and did not exceed 2 billion yuan (inclusive), and the repurchaseprice did not exceed 22 yuan per share.
According to the Proposal on Repurchase of Shares of the Company deliberated and adopted at the secondmeeting of the sixth session of the Board of Directors of the Company held on August 4, 2022, the Company hasused its own funds to buy back part of the public shares issued by it in China in the form of centralized biddingtransaction, which is used to convert corporate bonds or employee stock ownership plans issued by listedcompanies that can be converted into shares. The total amount of repurchase funds shall be not less than RMB 1billion (inclusive) and not more than RMB 2 billion (inclusive), and the repurchase price shall not exceed RMB20/share.
Pursuant to the “Proposal on Repurchasing the Company’s Shares” deliberated and approved by the tenthmeeting of the sixth session of the Board of Directors dated August 21, 2023 and “Proposal on Increasing theFunds for the Company’s Share Repurchase (Phase III)” deliberated and approved by the 14th meeting of thesixth session of the Board of Directors dated November 27, 2023, the Company was agreed to repurchase part ofthe RMB ordinary shares (A shares) issued by the Company domestically using self-owned funds throughcentralized bidding transactions for the purpose of conversion of the Company’s convertible corporate bonds intoshares or employee stock ownership plan. The total amount of repurchase funds was not less than 1.5 billion yuan(inclusive) and did not exceed 3 billion yuan (inclusive), and the repurchase price did not exceed 18 yuan(inclusive) per share.
The Company has repurchased 283,142,652 shares at the beginning of the period. In the current period, theCompany repurchased 233,290,470 shares by special securities account for repurchase through centralizedbidding transactions, with the highest transaction price of 12.70 yuan per share, the lowest transaction price of
9.94 yuan per share and the total transaction amount of 2,642,310,498.59 yuan (excluding transaction fees). In themeantime, the Company received a cash settlement income of 705,687.22 yuan from over-the-counter derivatives-related agreements signed with CITIC Securities Co., Ltd. and Shenwan Hongyuan Securities Co., Ltd., which
reduced the Company’s actual repurchase cost in the current period by 705,687.22 yuan.
36. Other comprehensive income
Unit: RMB
| Item | Opening balance | Current period cumulative | Closing balance | |||||
| Amount incurred before current income tax | Less: amount included in other comprehensive income previously and then transferred into current gain and loss | Less: Amount included in other comprehensive incomes previously and then transferred into current retained earnings | Less: income tax expenses | Attributable to the parent company after tax | Attributable to the minority shareholders after tax | |||
| I. Other comprehensive income which may not be reclassified to gain and loss | 590,642.24 | 590,642.24 | 590,642.24 | |||||
| Others | 590,642.24 | 590,642.24 | 590,642.24 | |||||
| II. Other comprehensive income which may be reclassified to gain and loss | 139,462,613.71 | -15,780,534.38 | -29,849,389.60 | 14,068,855.22 | 109,613,224.11 | |||
| Including: other comprehensive income convertible into profit or loss by the equity method | 71,764,562.47 | 32,807,598.27 | 34,005,723.54 | -1,198,125.27 | 105,770,286.01 | |||
| Translation difference of financial statements in foreign currency | 67,698,051.24 | -48,588,132.65 | -63,855,113.14 | 15,266,980.49 | 3,842,938.10 | |||
| Total other comprehensive income | 139,462,613.71 | -15,189,892.14 | -29,258,747.36 | 14,068,855.22 | 110,203,866.35 | |||
37. Special reserve
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Safety production expenses | 367,322,639.12 | 306,645,342.21 | 60,677,296.91 | |
| Total | 367,322,639.12 | 306,645,342.21 | 60,677,296.91 |
Other notes, including notes to increase and decrease in the current period and its reasons:
The increase and decrease of special reserve in this period are the safety production expenses accrued andused by subsidiaries Yisheng Dahua Petrochemical Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., ZhejiangYisheng New Material Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd. and ZPC Zheyou Technology Co.,
Ltd.
38. Surplus reserve
Unit: RMB
| Item | Opening balance | Increase in the current period | Decrease in the current period | Closing balance |
| Statutory surplus reserve | 886,470,394.72 | 87,681,249.96 | 974,151,644.68 | |
| Total | 886,470,394.72 | 87,681,249.96 | 974,151,644.68 |
39. Undistributed profits
Unit: RMB
| Item | Current period | Prior period |
| Undistributed profits at the end of the prior period before the adjustment | 29,264,532,743.94 | 27,605,458,498.55 |
| Total amount of undistributed profit at the beginning of adjustment (“+” for increase, “-” for decrease) | 1,177,803.84 | 626,838.23 |
| Undistributed profit at the beginning of the period after adjustment | 29,265,710,547.78 | 27,606,085,336.78 |
| Add: Net profit attributable to the owner of the parent company in the current period | 1,158,146,248.89 | 3,340,713,394.56 |
| Less: Withdrawal of statutory surplus reserve | 87,681,249.96 | 173,774,728.61 |
| Common stock dividends payable | 1,476,357,352.20 | 1,507,313,454.95 |
| Undistributed profits at the end of the period | 28,859,818,194.51 | 29,265,710,547.78 |
Details of adjustment of beginning undistributed profits:
As a result of the change in accounting policy, the undistributed profits affected at the beginning of the period wasRMB1,177,803.84.
40. Operating income and operating costs
Unit: RMB
| Item | Current period cumulative | Preceding period comparative | ||
| Revenue | Cost | Revenue | Cost | |
| Primary business | 324,161,501,353.80 | 286,937,146,140.13 | 287,950,149,983.36 | 256,926,391,305.48 |
| Other Businesses | 950,112,914.29 | 821,739,557.17 | 1,144,691,629.40 | 914,763,275.79 |
| Total | 325,111,614,268.09 | 287,758,885,697.30 | 289,094,841,612.76 | 257,841,154,581.27 |
Whether the lower of the net profits before and after net of non-recurring gains/losses is negative through audit
□Yes ?No
Other notes
Breakdown information of income
(1) Breakdown of revenue from contracts with customers by goods or services
| Item | Amount in the current period | Amount in the previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Oil refining | 121,884,564,630.35 | 97,185,773,925.13 | 103,841,990,910.56 | 84,981,949,000.87 |
| Chemical | 121,776,659,403.66 | 109,402,218,957.65 | 113,898,786,080.29 | 102,078,088,582.19 |
| PTA | 53,189,803,246.86 | 53,529,769,810.68 | 50,496,010,557.67 | 50,949,332,208.40 |
| Polyester chemical fiber film | 14,717,875,220.67 | 14,245,686,777.56 | 14,641,039,125.46 | 14,168,474,148.53 |
| Trade and others | 13,540,394,215.39 | 13,394,398,783.78 | 6,214,327,624.61 | 5,661,953,153.31 |
| Subtotal | 325,109,296,716.93 | 287,757,848,254.80 | 289,092,154,298.59 | 257,839,797,093.30 |
(2) Breakdown of revenue from contracts with customers by time of transferring goods or rendering services
| Item | Amount in the current period | Amount in the previous period |
| Revenue recognized at a certain point of time | 325,109,296,716.93 | 289,092,154,298.59 |
| Subtotal | 325,109,296,716.93 | 289,092,154,298.59 |
(3) The revenue recognized in the current period included in the opening book value of contract liabilities isRMB 3,689,553,428.65.
(4) Revenue from and cost of trial sales presented as operating revenue and operating cost
1) Revenue from and cost of trial sales
| Item | Amount in the current period | Amount in the previous period |
| Revenue from trial sales | 12,346,750,810.64 | 34,916,101,427.73 |
| Cost of trial sales | 12,028,406,955.08 | 29,676,585,780.01 |
2) Significant accounting estimates used in determining the cost associated with trial sales
The cost of inventories from trial production before the Company’s fixed assets reach the designed usablecondition is recognized based on the necessary and reasonable expenditures under normal design and productioncapacity, combined with factors such as the normal design production capacity, the normal production input-output ratio of the product, etc. after the fixed assets reach the designed usable condition.
41. Taxes and surcharges
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Excise (consumption) tax | 20,158,116,786.69 | 14,971,021,522.33 |
| Urban maintenance and construction tax | 1,413,261,170.65 | 1,045,144,550.70 |
| Education surcharge | 609,449,176.14 | 448,133,892.95 |
| Property tax | 35,451,787.21 | 35,981,636.59 |
| Land use tax | 145,847,592.94 | 115,394,536.99 |
| Vehicle and vessel tax | 92,010.68 | 101,671.92 |
| Stamp duty | 167,370,574.64 | 87,909,307.61 |
| Environmental protection tax | 11,767,763.80 | 8,395,902.69 |
| Local education surcharge | 406,300,720.73 | 298,755,958.60 |
| Total | 22,947,657,583.48 | 17,010,838,980.38 |
42. Administrative expenses
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Employee remuneration | 404,325,067.28 | 381,467,230.32 |
| Office expenses | 132,123,305.00 | 163,305,799.64 |
| Depreciation and amortization expenses | 170,018,094.68 | 141,020,604.94 |
| Insurance premium | 156,362,133.49 | 75,902,949.27 |
| Business entertainment expenses | 20,556,059.77 | 15,273,187.46 |
| Others | 25613358.00 | 38,263,837.47 |
| Total | 908,998,018.22 | 815,233,609.10 |
43. Selling expenses
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Employee remuneration | 114,405,591.84 | 110,041,776.76 |
| Sales business expenses | 33,264,718.69 | 39,978,053.01 |
| Others | 12791937.40 | 25,430,798.39 |
| Total | 160,462,247.93 | 175,450,628.16 |
44. R&D expenses
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Direct input | 5,002,777,534.42 | 3,695,900,511.90 |
| Depreciation and amortization | 977,831,515.04 | 323,443,663.63 |
| Employee remuneration | 553,305,248.93 | 323,237,921.80 |
| Equipment commissioning fee | 7,048,769.45 | 110,610.62 |
| Outsourcing R&D and others | 14,319,284.66 | 24,419,779.02 |
| Total | 6,555,282,352.50 | 4,367,112,486.97 |
45. Financial expenses
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Interest expense | 7,352,267,160.76 | 4,577,830,003.95 |
| Interest income | -462,192,239.25 | -351,751,026.01 |
| Net exchange losses/gains | 988,178,999.07 | 1,515,404,259.76 |
| Others | 323,873,805.56 | 289,026,311.05 |
| Total | 8,202,127,726.14 | 6,030,509,548.75 |
46. Other income
Unit: RMB
| Source of other income | Current period cumulative | Preceding period comparative |
| Government grants related to assets | 30,422,294.00 | 31,347,901.84 |
| Government grants related to income | 798,372,989.39 | 2,328,129,612.92 |
| Return of fees for withheld individual income tax | 5,085,360.29 | 2,748,797.01 |
| Value-added tax with deduction | 1,751,845,788.50 | |
| Others | 3,514,912.00 | 1,026,607.00 |
| Total | 2,589,241,344.18 | 2,363,252,918.77 |
47. Gain from change in fair value
Unit: RMB
| Source of income from changes in fair value | Current period cumulative | Preceding period comparative |
| Trading financial assets | 292,781,787.20 | 188,283,362.49 |
| Where: income from changes in fair value generated by derivative financial instruments | 292,781,787.20 | 188,283,362.49 |
| Trading financial liabilities | -136,895,519.26 | -177,555,295.59 |
| Total | 155,886,267.94 | 10,728,066.90 |
48. Investment income
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Long-term equity investment income calculated by equity method | 275,964,998.21 | 644,363,579.51 |
| Investment income from disposal of long-term equity investments | 30,580,952.97 | 10,425,856.86 |
| Investment income from disposal of trading financial assets | 327,969,992.65 | 281,620,572.84 |
| Financing discount loss of receivables | -174,729,555.22 | -243,137,052.04 |
| Interest income from related party lending | 248,144.66 | 205,188.67 |
| Total | 460,034,533.27 | 693,478,145.84 |
49. Credit impairment loss
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Bad debt losses | -105,271,556.51 | -15,203,657.84 |
| Total | -105,271,556.51 | -15,203,657.84 |
50. Asset impairment loss
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Inventory falling price loss | -121,513,148.98 | -282,256,547.80 |
| Total | -121,513,148.98 | -282,256,547.80 |
51. Income from asset disposal
Unit: RMB
| Sources of asset disposal income | Current period cumulative | Preceding period comparative |
| Income from disposal of fixed assets | 3,706,231.92 | 3,885,078.23 |
52. Non-operating income
Unit: RMB
| Item | Current period cumulative | Preceding period comparative | Amount included in non-recurring gain and loss of the current period |
| Income of indemnity | 223,772.36 | 3,271,502.16 | 223,772.36 |
| Income from fines and penalties | 2,533,090.04 | 1,041,311.20 | 2,533,090.04 |
| Others | 199409.30 | 431,757.01 | 196,467.55 |
| Total | 2,956,271.70 | 4,744,570.37 | 2,953,329.95 |
53. Non-operating expenses
Unit: RMB
| Item | Current period cumulative | Preceding period comparative | Amount included in non-recurring gain and loss of the current period |
| External donations | 10,000,000.00 | 11,000,000.00 | 10,000,000.00 |
| Amount included in non-recurring gain and loss of the current period | 156,295.40 | 102,819.31 | 156,295.40 |
| Late fee | 403,869.72 | 2,832,803.08 | 403,869.72 |
| Others | 101,964.64 | 165,503.94 | 101,964.64 |
| Total | 10,662,129.76 | 14,101,126.33 | 10,662,129.76 |
54. Income tax expenses
(1) Presentation of income tax expenses
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Income tax expenses in the current period | 597,000,358.58 | 697,479,472.15 |
| Deferred income tax expenses | -647,584,367.94 | -1,448,733,263.89 |
| Total | -50,584,009.36 | -751,253,791.74 |
(2) Adjustment of accounting profit and income tax expense
Unit: RMB
| Item | Current period cumulative |
| Total profits | 1,552,578,456.28 |
| Income tax expenses at statutory/applicable rates | 388,144,614.08 |
| Impact of different tax rates applied to subsidiaries | -268,306,181.60 |
| Impact of income tax during periods prior to adjustment | 326,589,246.89 |
| Impact of non-taxable income | -276,675,158.02 |
| Impact of non-deductible costs, expenses and losses | 123,405,546.72 |
| Impact of using deductible loss on deferred income tax assets unrecognized in prior periods | -61,386,376.13 |
| Impact of temporary deductible difference or deductible loss on deferred income tax assets unrecognized in the current period | 288,998,592.88 |
| Tax credit for the investment amount of enterprise in purchasing special equipment for environmental protection | -7,163,213.54 |
| Impact of R&D cost plus deduction | -552,496,534.19 |
| Extra deductions of wages for the disabled | -11,694,546.45 |
| Income tax expenses | -50,584,009.36 |
55. Other comprehensive income
For details, please refer to Note V (I) 36 of the attached table.
56. Cash flow statement items
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Recovery of bills, letters of credit and other deposits | 2,227,779,041.99 | 2,866,495,137.32 |
| Temporary loan received from Zhejiang Rongsheng Holding Group Co., Ltd. | 1,700,000,000.00 | 200,000,000.00 |
| Interest income received from bank deposits | 462,192,239.25 | 351,751,026.01 |
| Recovery of operating deposit and security deposit | 358,954,526.64 | 437,519,028.13 |
| Government subsidies received | 882,037,187.49 | 85,667,751.41 |
| Others | 20,817,409.42 | 72,326,626.03 |
| Total | 5,651,780,404.79 | 4,013,759,568.90 |
Other cash paid related to operating activities
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Payment for deposits for notes and letters of credit | 1,274,961,321.30 | 2,227,779,041.99 |
| Repayment of temporary borrowings from Zhejiang Rongsheng Holding Group Co., Ltd. | 1,700,000,000.00 | 200,000,000.00 |
| Out-of-pocket expenses of administrative expenses, R&D expenses and selling expenses | 421,455,195.91 | 491,786,793.13 |
| Borrowing and interest paid on behalf of Zhoushan Yushan Petrochemical Engineering Co., Ltd. | ||
| Payment of bank charges | 302,962,268.04 | 270,342,872.02 |
| Payment of operating deposit and security deposit | 241,779,503.01 | 321,584,656.12 |
| Others | 79759938.71 | 22,257,019.72 |
| Total | 4,020,918,226.97 | 3,533,750,382.98 |
(2) Cash related to investment activities
Other cash receipts related to investing activities
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Withdrawal of deposits for notes and letters of credit | 300,801,878.44 | 171,820,956.95 |
| Receipts of project and land bidding deposits | 170,796,112.11 | 241,165,333.31 |
| Withdrawal of temporary borrowings and interests from ZPC ENN (Zhoushan) Gas Co., Ltd. | 248,144.64 | 205,188.67 |
| Total | 471,846,135.19 | 413,191,478.93 |
Other cash payments related to investing activities
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Payment for project and land bidding deposits | 152,021,068.01 | 185,974,340.70 |
| Payment for deposits for notes and letters of credit | 58,439,047.20 | 300,801,878.44 |
| Payment for temporary borrowings to ZPC ENN (Zhoushan) Gas Co., Ltd. | 6,000,000.00 | |
| Total | 216,460,115.21 | 486,776,219.14 |
(3) Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Receipts of temporary borrowings from Zhejiang Rongsheng Holding Group Co., Ltd. | 19,821,000,000.00 | 6,290,000,000.00 |
| Receipts of entrusted loans from Zhejiang Yisheng Petrochemical Co., Ltd. | 786,000,000.00 | 988,000,000.00 |
| Withdrawal of deposits for borrowings | 250,000,000.00 | 360,000,000.00 |
| Sales of corporate bonds | 494,566,600.00 | |
| Received equity transfer payment from Rongsheng New Materials (Taizhou) Co., Ltd. | 28,325,460.00 | |
| Receipts from discounted but undue letters of credit and notes | 6,567,014,988.16 | |
| Total | 20,885,325,460.00 | 14,699,581,588.16 |
Other cash payments related to financing activities
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Repayment of temporary loan to Zhejiang Rongsheng Holding Group Co., Ltd. | 6,927,759,989.43 | 4,840,158,257.44 |
| Repayment of entrusted loan and interest to Zhejiang | 1,028,982,195.75 | 1,129,574,324.99 |
| Yisheng Petrochemical Co., Ltd. | ||
| Payment of financing fees | 20,911,537.53 | 18,683,439.05 |
| Expenditure for right-to-use assets | 31,518,302.23 | 32,433,187.97 |
| Payment of loan security | 250,000,000.00 | 265,545,440.00 |
| Stock repurchase | 2,642,310,498.59 | 3,978,202,364.65 |
| Paid option deposit of Shenwan Hongyuan Securities Co., Ltd. | 5,000,000.00 | |
| Redemption of corporate bonds | 494,566,600.00 | |
| Payment for discounted letters of credit upon maturity | 20,297,165,632.32 | |
| Total | 31,203,648,155.85 | 10,759,163,614.10 |
Changes in all liabilities arising from financing activities
□Applicable ?Not applicable
57. Supplementary information of Cash Flow Statement
(1) Supplementary information of Cash Flow Statement
Unit: RMB
| Supplementary information | Closing balance | Opening balance |
| 1. Converting net profit into cash flow from operating activities | ||
| Net profit | 1,603,162,465.64 | 6,370,323,018.01 |
| Add: Provision for impairment of assets | 226,784,705.49 | 297,460,205.64 |
| Fixed assets depreciation, oil and gas assets depletion, productive biological assets depreciation | 14,535,540,221.77 | 11,157,350,758.13 |
| Depreciation of right-of-use assets | 25,504,627.18 | 27,471,659.67 |
| Amortization of intangible assets | 160,144,938.95 | 114,444,041.96 |
| Amortization of long-term deferred expenses | 71,458.00 | 67,861.04 |
| Loss on disposing fixed assets, intangible assets and other long-term assets (gains expressed with “-”) | -3,706,231.92 | -3,885,078.23 |
| Losses on disposal of fixed assets (gains expressed with “-”) | 156,295.40 | 102,819.31 |
| Loss from changes in fair value (gains expressed with “-”) | -155,886,267.94 | -10,728,066.90 |
| Financial expenses (gains expressed with “-”) | 8,367,284,097.36 | 6,111,917,702.75 |
| Loss from investment (gains expressed with “-”) | -460,034,533.27 | -936,615,197.88 |
| Reduction of deferred income tax assets (increase expressed with “-”) | -310,687,195.79 | -139,026,723.73 |
| Increase of deferred income tax liabilities (decrease expressed with “-”) | -336,897,172.15 | -1,309,706,540.17 |
| Decrease in inventories (increase expressed with “-”) | -1,165,260,697.11 | -13,935,026,846.57 |
| Decrease of operating receivables (increase expressed with “-”) | 695,137,952.67 | 7,977,342,745.44 |
| Increase in operating payables (decrease expressed with “-”) | 4,721,365,821.01 | 3,336,644,526.88 |
| Others | 176,541,023.44 | |
| Net cash flow from operating activities | 28,079,221,508.73 | 19,058,136,885.36 |
| 2. Significant investment and financial activities not involving cash receipts and payments | ||
| Debt into capital | ||
| Convertible corporate bonds due within one year | ||
| Fixed assets leased under finance leases | ||
| 3. Net change in cash and cash equivalents: | ||
| Closing balance of cash | 11,486,855,097.52 | 15,459,279,803.77 |
| Less: Opening balance of cash | 15,459,279,803.77 | 14,338,837,644.67 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -3,972,424,706.25 | 1,120,442,159.10 |
(2) Composition of cash and cash equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 11,486,855,097.52 | 15,459,279,803.77 |
| Including: cash on hand | 1,499,665.59 | 947,398.91 |
| Bank deposits available for payment at any time | 11,121,148,364.87 | 14,971,568,361.00 |
| Other monetary funds available for payment at any time | 364,207,067.06 | 486,764,043.86 |
| II. Closing balance of cash and cash equivalents | 11,486,855,097.52 | 15,459,279,803.77 |
(3) Monetary funds that are not cash and cash equivalents
Unit: RMB
| Item | Closing balance | Opening balance | Reasons for not considered as cash and cash equivalents |
| Deposits for bank acceptance | 771,727,014.41 | 965,307,469.62 | Security deposit |
| L/C deposit | 561,350,011.26 | 980,285,341.35 | Security deposit |
| Deposits for loans | 250,000,000.00 | 250,000,000.00 | Security deposit |
| Deposits for letters of guarantee | 552,377,191.00 | Security deposit | |
| Deposits for leased-in silver | 26,758,215.21 | Security deposit | |
| Accrued interest of deposits | 322,342.83 | 4,766,359.26 | Accrual of deposit interest |
| ETC deposits | 1,000.00 | ||
| Total | 1,583,400,368.50 | 2,779,494,576.44 |
(4) Changes in liabilities related to financing activities
Unit：RMB 10,000
| Item | Amount at the beginning of the period | Increase in the current period | Decrease in the current period | Amount at the end of the period | ||
| Changes in cash | Changes in non-cash | Changes in cash | Changes in non-cash | |||
| Bank borrowings | 17,777,103.67 | 13,840,969.31 | 824,311.66 | 12,533,914.26 | 86,512.00 | 19,821,958.38 |
| Other payables – temporary borrowings from Zhejiang Rongsheng Holding Group Co., Ltd. | 153,951.34 | 1,982,100.00 | 18,301.02 | 692,776.00 | 1,461,576.36 | |
| Other payables – entrusted loans from Zhejiang Yisheng Petrochemical Co., Ltd. | 98,943.39 | 78,600.00 | 4,069.75 | 102,898.22 | 78,714.92 | |
| Other payables – dividend payable | 147,635.74 | 147,635.74 | ||||
| Bonds payable (including bonds payable due within one year) | 203,482.71 | 7,535.49 | 7,310.00 | 203,708.20 | ||
| Lease liabilities (including lease liabilities due within one year) | 23,569.08 | 936.87 | 3,151.83 | 21,354.12 | ||
| Subtotal | 18,257,050.19 | 15,901,669.31 | 1,002,790.53 | 13,487,686.05 | 86,512.00 | 21,587,311.98 |
(5) Description of other major activities
Endorsement and transfer amount of commercial drafts that do not involve cash receipts and payments
| Item | Amount in the current period | Amount in the previous period |
| Amount of commercial bill transferred by endorsement | 3,524,694,837.25 | 2,384,544,577.78 |
| Including: payment for goods | 3,454,580,186.05 | 2,255,269,688.24 |
| Payment for the purchase of fixed assets and other long-term assets | 70,114,651.20 | 129,274,889.54 |
58. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
Unit: RMB
| Item | Closing balance in foreign currencies | Translation rate | Closing balance in RMB |
| Monetary fund | |||
| Including: USD | 470,818,718.98 | 7.0827 | 3,334,667,740.92 |
| EUR | 4,661,333.75 | 7.8592 | 36,634,354.21 |
| HKD | 361,531.29 | 0.9062 | 327,619.65 |
| GBP | 2.70 | 9.0411 | 24.41 |
| Singapore dollar | 2,348,572.33 | 4.4991 | 10,566,461.77 |
| Accounts receivable | |||
| Including: USD | 401,124,350.66 | 7.0827 | 2,841,043,438.42 |
| EUR | |||
| HKD | |||
| Other receivables | |||
| Including: USD | 25,035,187.30 | 7.0827 | 177,316,721.09 |
| Singapore dollar | 40,614.65 | 4.4991 | 182,729.37 |
| HKD | 12,487,496.00 | 0.9062 | 11,316,168.88 |
| Other payables | |||
| Including: USD | 36,819,448.31 | 7.0827 | 260,781,106.55 |
| Singapore dollar | 102,775.68 | 4.4991 | 462,398.06 |
| Accounts payable | |||
| Including: USD | 4,439,770,489.91 | 7.0827 | 31,445,562,448.89 |
| EUR | 21,638,010.33 | 7.8592 | 170,057,450.79 |
| Long-term loan | |||
| Including: USD | |||
| EUR | 54,393,495.89 | 7.8592 | 427,489,362.90 |
| HKD | |||
| Non-current liabilities due within one year | |||
| Including: USD | 1,030,962.05 | 7.0827 | 7,301,994.91 |
| EUR | 6,399,234.82 | 7.8592 | 50,292,866.30 |
(2) Description of the overseas operating entity, including important overseas operating entity, shalldisclose its main overseas business place, recording currency and the basis for selection, and shall alsodisclose reasons in the case of changes in recording currency.?Applicable □Not applicable
| Company name | Place of registration | Recording currency | Selection basis |
| Hong Kong Sheng Hui Co., Ltd. | Hong Kong, China | USD | General settlement currency for company operation |
| Hong Kong Yisheng Dahua Petrochemical Co., Ltd. | Hong Kong, China | ||
| Yisheng New Materials Trading Co., Ltd. | Hong Kong, China | ||
| Rongsheng Petrochemical (Hong Kong) Co., Ltd. | Hong Kong, China | ||
| Rongsheng Petrochemical (Singapore) Pte. Ltd. | Singapore | ||
| Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd. | Singapore | ||
| Rongtong Logistics (Singapore) Pte. Ltd. | Singapore |
59. Lease
(1) The Company acts as the Lessee:
?Applicable □Not applicableVariable lease payments not included in the measurement of lease liabilities
□Applicable ?Not applicable
Lease costs for short-term leases or low-value assets with simplified treatment?Applicable □Not applicable
Please refer to section III (XXIX) of notes to the financial statements for details on the Company’saccounting policies on short-term leases and leases for which the underlying asset is of low value. The amountsof short-term leases and low-value asset leases included into profit or loss are as follows:
| Item | Amount in the current period | Amount in the previous period |
| Expense relating to short-term leases | 20,554,034.54 | 9,678,895.61 |
| Expense relating to leases of low-value assets (excluding short-term leases) | ||
| Total | 20,554,034.54 | 9,678,895.61 |
(2) The Company acts as lessor
Operating lease as lessor?Applicable □Not applicable
Unit: RMB
| Item | Lease income | Including: Income relating to variable lease payments not included in the measurement of the lease liabilities |
| Lease income | 2,317,551.16 | 2,317,551.16 |
| Total | 2,317,551.16 | 2,317,551.16 |
Financial lease as lessor
□Applicable ?Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable ?Not applicable
Reconciliation between undiscounted lease receipts and net lease investment
(3) Recognition of the profit and loss of financial leasing sales as a manufacturer or distributor
□Applicable ?Not applicable
VIII. R&D expenditure
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Direct input | 5,002,777,534.42 | 3,695,900,511.90 |
| Depreciation and amortization | 977,831,515.04 | 323,443,663.63 |
| Employee remuneration | 553,305,248.93 | 323,237,921.80 |
| Equipment commissioning fee | 7,048,769.45 | 110,610.62 |
| Outsourcing R&D and others | 14,319,284.66 | 24,419,779.02 |
| Total | 6,555,282,352.50 | 4,367,112,486.97 |
| Including: expensed R&D expenditure | 6,555,282,352.50 | 4,367,112,486.97 |
IX. Changes in Combination Scope
(1) Disposal of subsidiaries
Whether there were any transactions or matters during the period in which control of subsidiaries is lost?Yes □No
Unit: RMB
| Subsidiaries | Equity disposal consideration | Equity disposal proportion (%) | Equity disposal method | Loss-of-control date | Determination basis for loss-of-control date | Difference between disposal consideration and net assets attributable to the Company at the consolidated financial statements level | Proportion of remaining equity at the loss-of-control date | Carrying amount of remaining equity at the loss-of-control date | Fair value of remaining equity at the loss-of-control date | Gains/Losses on fair value remeasurement of remaining equity | Determination method and major assumption on fair value of remaining equity at the loss-of-control date | Changes in other comprehensive income/equity related to former subsidiary’s equity investment transferred to investment income |
| Zhoushan Yushan Petrochemical Engineering Co., Ltd. | 18,792,928.90 | 100.00% | Transfer | June 29, 2023 | Registration of changes at administration for market regulation | 30,570,829.31 |
Whether there is a step-by-step disposal of investments in subsidiaries through multiple transactions and loss ofcontrol during the period
□Yes ?No
2. Changes in combination scope due to other reasons
Increase in combination scope
| Company name | Equity acquisition method | Equity acquisition date | Subscribed capital contribution | Subscribed holding proportion (%) |
| Zhoushan ZPC Sales Co., Ltd. | Newly | May 25, 2023 | 10,000,000.00 | 100.00 |
| established | ||||
| Ningbo ZPC Sales Co., Ltd. | Newly established | December 29, 2023 | 10,000,000.00 | 100.00 |
| Zhejiang ZPC Power Generation Co., Ltd. | Newly established | May 23, 2023 | 100,000,000.00 | 100.00 |
| Rongsheng Energy (Zhoushan) Co., Ltd. | Newly established | November 27, 2023 | 100,000,000.00 | 100.00 |
| Zhejiang Rongshen New Materials Co., Ltd. | Newly established | June 13, 2023 | 20,000,000.00 | 100.00 |
| Zhejiang Shengcheng New Materials Co., Ltd. | Newly established | June 13, 2023 | 20,000,000.00 | 100.00 |
| Zhejiang Huiyu New Materials Co., Ltd. | Newly established | June 13, 2023 | 20,000,000.00 | 100.00 |
3. The share of owners' equity in the subsidiary changes but still controls the transactions of subsidiaries
1) Description of changes in the share of owners' equity in subsidiaries
| Name of subsidiary | Date of change | Holding proportion before change | Holding proportion after change |
| Rongsheng New Material (Taizhou) Co., Ltd. | December 29, 2023 | 100% | 90% |
2) Influence of transaction on minority shareholders' equity and owners' equity attributable to parent company
| Item | Rongsheng New Material (Taizhou) Co., Ltd. |
| Disposal considerations | |
| Cash | 28,325,460.00 |
| Total disposal considerations | 28,325,460.00 |
| Less: Share in subsidiaries’ net assets based on disposed net assets proportion | 27,623,276.24 |
| Difference | 702,183.76 |
| Including: Adjustment of capital reserve | 702,183.76 |
X. Equities in Other Entities
1. Equities in subsidiaries
(1) Group composition
Unit：RMB 10,000
| Name of subsidiary | Registered capital | Principal place of business | Place of registration | Business nature | Shareholding ratio | Acquisition method | |
| Direct | Indirect | ||||||
| Zhejiang Shengyuan Chemical Fiber Co., Ltd. | 200,000.00 | Xiaoshan, Zhejiang | Xiaoshan, Zhejiang | Manufacturing | 100.00% | Set up | |
| Hong Kong Sheng Hui Co., Ltd. | USD 1,970.00 | Hong Kong, China | Hong Kong, China | Commercial | 100.00% | Business combinations under the same control | |
| Ningbo Yisheng Chemical Co., Ltd. | USD 10,526.00 | Ningbo, Zhejiang | Ningbo, Zhejiang | Manufacturing | 95.00% | Set up | |
| Dalian Yisheng Investment Co., Ltd. | 201,800.00 | Dalian, Liaoning | Dalian, Liaoning | Manufacturing | 70.00% | Set up | |
| Yisheng Dahua Petrochemical Co., Ltd. | 245,645.00 | Dalian, Liaoning | Dalian, Liaoning | Manufacturing | 84.60% | Set up | |
| Hong Kong Yisheng Dahua Petrochemical Co., Ltd. | USD 10.00 | Hong Kong, China | Hong Kong, China | Commercial | 100.00% | Set up | |
| Dalian Rongxincheng Trading Co., Ltd. | 1,000.00 | Dalian, Liaoning | Dalian, Liaoning | Commercial | 100.00% | Set up | |
| Zhejiang Rongtong Chemical Fiber New Material Co., Ltd. | 5,000.00 | Xiaoshan, Zhejiang | Xiaoshan, Zhejiang | Commercial | 100.00% | Set up | |
| Dalian Yisheng New Materials Co., Ltd. | 2,000.00 | Dalian, Liaoning | Dalian, Liaoning | Manufacturing | 100.00% | Set up | |
| Ningbo Zhongjin Petrochemical Co., Ltd. | 600,000.00 | Ningbo, Zhejiang | Ningbo, Zhejiang | Manufacturing | 100.00% | Business combinations under the same control | |
| Ningbo Niluoshan New Energy Co., Ltd. | 36,000.00 | Ningbo, Zhejiang | Ningbo, Zhejiang | Manufacturing | 100.00% | Set up | |
| Zhejiang Yisheng New Materials Co., Ltd. | 300,000.00 | Ningbo, Zhejiang | Ningbo, Zhejiang | Manufacturing | 51.00% | Business combinations not under the same control | |
| Ningbo Rongxincheng Trading Co., Ltd. | 1,000.00 | Ningbo, Zhejiang | Ningbo, Zhejiang | Commercial | 100.00% | Set up | |
| Yisheng New Materials Trading Co., Ltd. | HKD 100.00 | Hong Kong, China | Hong Kong, China | Commercial | 100.00% | Set up | |
| Zhejiang Rongyi Trading Co., Ltd. | 1,000.00 | Ningbo, Zhejiang | Ningbo, Zhejiang | Commercial | 100.00% | Set up | |
| Rongsheng Petrochemical (Singapore) Pte. Ltd. | USD 10,100.00 | Singapore | Singapore | Commercial | 100.00% | Set up | |
| Rongtong Logistics (Singapore) Pte. Ltd. | USD 0.0001 | Singapore | Singapore | Commercial | 100.00% | Set up | |
| Rongsheng Petrochemical (Hong Kong) Co., Ltd. | USD 10.00 | Hong Kong | Hong Kong | Commercial | 100.00% | Set up | |
| Rongsheng International Trading Co., Ltd. | 10,000.00 | Xiaoshan, Zhejiang | Xiaoshan, Zhejiang | Commercial | 100.00% | Set up | |
| Zhejiang Petroleum & Chemical Co., Ltd. | 5,580,000.00 | Zhoushan, Zhejiang | Zhoushan, Zhejiang | Manufacturing | 51.00% | Business combinations under the same control | |
| ZPC Zheyou Technology Co., Ltd. | 41,220.00 | Zhoushan, Zhejiang | Zhoushan, Zhejiang | Manufacturing | 70.00% | Set up | |
| Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd. | USD 10.00 | Singapore | Singapore | Commercial | 100.00% | Set up | |
| ZPC Jintang Logistics Co., Ltd. | 200,000.00 | Zhoushan, Zhejiang | Zhoushan, Zhejiang | Commercial | 100.00% | Set up | |
| Zhejiang ZPC Sales Co., Ltd. | 10,000.00 | Xiaoshan, Zhejiang | Xiaoshan, Zhejiang | Commercial | 100.00% | Set up | |
| Zhoushan ZPC Sales Co., Ltd. | 6,000.00 | Zhoushan, Zhejiang | Zhoushan, Zhejiang | Commercial | 100.00% | Set up | |
| Zhoushan ZPC Sales Co., Ltd. | 6,000.00 | Zhoushan, Zhejiang | Zhoushan, Zhejiang | Commercial | 100.00% | Set up | |
| Ningbo ZPC Sales Co., Ltd. | 1,000.00 | Ningbo, Zhejiang | Ningbo, Zhejiang | Commercial | 100.00% | Set up | |
| ZPC (Zhejiang Free Trade Zone) Green Petrochemical Research Institute Co., Ltd. | 10,000.00 | Zhoushan, Zhejiang | Zhoushan, Zhejiang | Commercial | 100.00% | Set up | |
| Zhejiang ZPC Power Generation Co., Ltd. | 10,000.00 | Zhoushan, | Zhoushan, | Manufacturing | 100.00% | Set up |
| Zhejiang | Zhejiang | ||||||
| Rongxiang Chemical Fiber Co., Ltd. | 20,000.00 | Xiaoshan, Zhejiang | Xiaoshan, Zhejiang | Manufacturing | 100.00% | Set up | |
| Zhejiang Yongsheng Technology Co., Ltd. | 16,000.00 | Shaoxing, Zhejiang | Shaoxing, Zhejiang | Manufacturing | 70.00% | Business combinations under the same control | |
| Zhejiang Zhuosheng Industry & Trade Co., Ltd. | 1,000.00 | Shaoxing, Zhejiang | Shaoxing, Zhejiang | Commercial | 100.00% | Set up | |
| Rongsheng International Trading (Hainan) Co., Ltd. | 10,000.00 | Danzhou, Hainan | Danzhou, Hainan | Commercial | 100.00% | Set up | |
| Rongsheng Chemical (Shanghai) Co., Ltd. | 100,000.00 | Shanghai, China | Shanghai, China | Commercial | 100.00% | Set up | |
| Rongsheng (Zhoushan) New Materials Co., Ltd. | 100,000.00 | Zhoushan, Zhejiang | Zhoushan, Zhejiang | Manufacturing | 100.00% | Set up | |
| Rongsheng Energy (Zhoushan) Co., Ltd. | 10,000.00 | Zhoushan, Zhejiang | Zhoushan, Zhejiang | Manufacturing | 100.00% | Set up | |
| Rongsheng New Material (Taizhou) Co., Ltd. | 100,000.00 | Taizhou, Zhejiang | Taizhou, Zhejiang | Manufacturing | 90.00% | Set up | |
| Zhejiang Rongshen New Materials Co., Ltd. | 2,000.00 | Xiaoshan, Zhejiang | Xiaoshan, Zhejiang | Commercial | 100.00% | Set up | |
| Zhejiang Shengcheng New Materials Co., Ltd. | 2,000.00 | Xiaoshan, Zhejiang | Xiaoshan, Zhejiang | Commercial | 100.00% | Set up | |
| Zhejiang Huiyu New Materials Co., Ltd. | 2,000.00 | Xiaoshan, Zhejiang | Xiaoshan, Zhejiang | Commercial | 100.00% | Set up |
(2) Major non-wholly owned subsidiaries
Unit: RMB
| Name of subsidiary | Shareholding ratio of minority shareholders | Gain and loss attributable to minority shareholders in the current period | Dividend announced to be distributed to minority shareholders in the current period | Closing balance of minority equity |
| Dalian Yisheng Investment Co., Ltd. | 30.00% | 23,229,152.72 | 2,050,674,805.97 | |
| Yisheng Dahua Petrochemical Co., Ltd. | 15.40% | -19,862,739.89 | 1,047,861,642.55 | |
| Zhejiang Yisheng New Materials Co., Ltd. | 49.00% | -265,945,057.22 | 1,127,849,501.83 |
| Zhejiang Petroleum & Chemical Co., Ltd. | 49.00% | 721,460,985.96 | - | 45,993,192,147.53 |
(3) Main financial information of major non-wholly owned subsidiaries
Unit: RMB
| Name of subsidiary | Closing balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Dalian Yisheng Investment Co., Ltd. | 6,043,382,793.70 | 10,173,002,029.51 | 16,216,384,823.21 | 7,509,876,231.58 | 1,006,365,995.26 | 8,516,242,226.84 | 7,863,016,267.32 | 9,670,921,048.60 | 17,533,937,315.92 | 9,020,135,075.15 | 877,263,398.54 | 9,897,398,473.69 |
| Yisheng Dahua Petrochemical Co., Ltd. | 7,881,162,643.98 | 6,690,663,043.40 | 14,571,825,687.38 | 7,507,801,187.61 | 1,006,365,995.26 | 8,514,167,182.87 | 9,702,998,995.48 | 6,368,833,973.65 | 16,071,832,969.13 | 9,017,987,092.36 | 877,263,398.54 | 9,895,250,490.90 |
| Zhejiang Yisheng New Materials Co., Ltd. | 3,092,416,626.70 | 8,847,477,862.13 | 11,939,894,488.83 | 6,977,327,918.39 | 2,670,572,649.50 | 9,647,900,567.89 | 3,175,435,983.29 | 9,113,541,928.71 | 12,288,977,912.00 | 7,823,185,859.65 | 1,605,762,652.80 | 9,428,948,512.45 |
| Zhejiang Petroleum & Chemical Co., Ltd. | 64,568,747,170.94 | 233,498,324,220.33 | 298,067,071,391.27 | 89,967,924,493.30 | 114,638,353,580.77 | 204,606,278,074.07 | 66,428,360,516.70 | 220,440,137,988.94 | 286,868,498,505.64 | 73,204,392,158.98 | 121,717,089,146.90 | 194,921,481,305.88 |
Unit: RMB
| Name of subsidiary | Current period cumulative | Preceding period comparative | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Dalian Yisheng Investment Co., Ltd. | 30,081,391,445.25 | 57,567,769.18 | 63,603,754.14 | 1,434,071,122.98 | 29,747,828,875.56 | 405,244,408.13 | 444,753,213.12 | 888,943,615.77 |
| Yisheng Dahua Petrochemical Co., Ltd. | 30,081,390,277.11 | -128,953,709.57 | -118,923,973.72 | 1,412,368,245.10 | 29,747,828,875.56 | -119,472,040.53 | -72,233,318.83 | 386,340,641.09 |
| Zhejiang Yisheng New Materials Co., Ltd. | 34,389,876,066.56 | -567,448,779.11 | -568,035,478.61 | 598,995,712.89 | 33,708,553,178.23 | -251,997,551.76 | -252,396,220.69 | 557,152,030.10 |
| Zhejiang Petroleum & Chemical Co., Ltd. | 260,199,581,771.04 | 1,366,854,753.00 | 1,390,250,929.22 | 9,170,067,788.54 | 230,163,720,208.29 | 6,052,043,366.76 | 6,051,889,116.30 | 22,092,257,895.11 |
2. Equity in joint ventures or associated enterprises
(1) Important joint ventures or associated enterprises
| Name of the joint venture or associated enterprise | Principal place of business | Place of registration | Business nature | Shareholding ratio | Accounting method for investments in joint ventures or associated enterprises | |
| Direct | Indirect | |||||
| Zhejiang Yisheng Petrochemical Co., Ltd. | Ningbo, Zhejiang | Ningbo, Zhejiang | Manufacturing | 16.07% | 13.93% | Accounting by the equity method |
| Hainan Yisheng Petrochemical Co., Ltd. | Yangpu, Hainan | Yangpu, Hainan | Manufacturing | 0.00% | 50.00% | Accounting by the equity method |
| Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. | Xiaoshan, Zhejiang | Xiaoshan, Zhejiang | Finance | 9.71% | 0.00% | Accounting by the equity 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 thecompany, who has the substantive right to participate in decision-making. The representative can participate in the formulation of financial and operating policies ofZhejiang Xiaoshan Rural Commercial Bank Co., Ltd., so as to exert significant influence on it.
(2) Main financial information of important associated enterprises
Unit: RMB
| Closing balance/Current period cumulative | Opening balance/Preceding period comparative | |||||
| Zhejiang Yisheng Petrochemical | Hainan Yisheng Petrochemical | Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. | Zhejiang Yisheng Petrochemical | Hainan Yisheng Petrochemical | Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. | |
| Current assets | 16,498,637,547.38 | 6,162,955,958.24 | 238,736,568,512.17 | 15,176,421,030.33 | 5,152,846,491.05 | 204,793,958,004.31 |
| Non-current assets | 3,137,691,308.20 | 10,723,396,187.42 | 113,548,089,574.71 | 3,593,134,697.01 | 7,192,824,373.67 | 78,315,867,412.72 |
| Total assets | 19,636,328,855.58 | 16,886,352,145.66 | 352,284,658,086.88 | 18,769,555,727.34 | 12,345,670,864.72 | 283,109,825,417.03 |
| Current liabilities | 9,220,485,531.00 | 5,777,465,785.67 | 306,542,331,514.47 | 9,101,100,209.73 | 4,166,702,054.87 | 254,929,737,080.22 |
| Non-current liabilities | 1,436,900,038.76 | 4,326,522,448.83 | 22,201,300,436.51 | 733,508,577.50 | 1,752,991,337.36 | 7,337,120,231.30 |
| Total liabilities | 10657385569.76 | 10,103,988,234.50 | 328,743,631,950.98 | 9,834,608,787.23 | 5,919,693,392.23 | 262,266,857,311.52 |
| Minority equity | 284,964,915.83 | 273,191,261.65 | ||||
| Shareholders’ equity attributable to the parent company | 8,978,943,285.82 | 6,782,363,911.16 | 23,256,061,220.07 | 8,934,946,940.11 | 6,425,977,472.49 | 20,569,776,843.86 |
| Share of net assets calculated by the shareholding ratio | 2,693,682,985.75 | 3,391,181,955.58 | 2,258,628,665.69 | 2,680,484,082.03 | 3,212,988,736.25 | 1,997,736,727.08 |
| Adjustments | ||||||
| --Goodwill | 102,420,730.97 | 4,040,414.35 | 102,420,700.00 | 4,040,400.00 | ||
| --Unrealized profits from internal transactions | -10,465,016.83 | -12,523,708.66 | ||||
| --Others | 11,273,596.90 | 2,929,588.71 | 11,273,596.91 | 30.97 | 4,302,713.07 | |
| Book value of equity investment in associated enterprise | 2,704,956,582.65 | 3,483,137,669.72 | 2,265,598,668.75 | 2,691,757,678.94 | 3,302,885,758.56 | 2,006,079,840.15 |
| Fair value of equity investment in associated enterprise with the public offer | ||||||
| Operating revenue | 22,591,382,924.36 | 17,995,790,974.30 | 7,015,368,301.09 | 21,386,152,052.27 | 22,716,982,913.38 | 6,359,496,651.71 |
| Net profit | 27,812,596.46 | 364,367,774.59 | 2,789,441,227.26 | -171,937,538.81 | 1,040,012,894.66 | 2,475,781,182.70 |
| Net profit from termination of operation | ||||||
| Other comprehensive income | 16183749.25 | -7,987,501.78 | 339,244,113.18 | -24,444,114.36 | 68,595,637.98 | -603,830,133.66 |
| Total comprehensive income | 43,996,345.71 | 356,380,272.81 | 3,128,685,340.44 | -196,381,653.17 | 1,108,608,532.64 | 1,871,951,049.04 |
| Dividends received from associated enterprises in the current year | 39,685,918.80 | 39,685,918.80 |
(3) Summary of the financial information of minor joint ventures and associated enterprises
Unit: RMB
| Closing balance/Current period cumulative | Opening balance/Preceding period comparative | |
| Joint ventures： | ||
| Total of the following items calculated as per the respective shareholding proportion | ||
| Associated enterprise: | ||
| Total book value of investments | 730,018,523.84 | 732,606,528.70 |
| Total of the following items calculated as per the respective shareholding proportion | ||
| --Net profit | -182,684,759.52 | -97,101,935.54 |
| --Other comprehensive income | -1,198,206.27 | 10,135,095.24 |
| --Total comprehensive income | -183,882,965.79 | -86,966,840.30 |
XI. Government Grants
1. At the end of the reporting period, government grants recognized according to the amount receivable?Applicable □Not applicable
| Items | Closing book balance |
| Government grants receivable – within one year [Note] | 744,000,000.00 |
| Government grants receivable – 1-2 years | 1,545,798,000.00 |
| Subtotal | 2,289,798,000.00 |
Note: As of the date of approval for issuing the financial statements, the Company has received subsidies of744,000,000.00 yuan.
2. Reasons for not receiving the estimated amount of government subsidies at the expected time?Applicable □Not applicable
As of the date of approval for issuing the financial statements, the Company has received subsidies of500,000,000.00 yuan, with remaining 1,045,798,000.00 yuan to be paid subject to fiscal arrangements.
3. Liability items involving government subsidies
?Applicable □Not applicable
Unit: RMB
| Accounting subject | Opening balance | Amount of additional subsidy in current period | Amount included in current non-operating income | Amount carried forward to other income in current period | Other change in current period | Closing balance | Related to assets/income |
| Deferred income | 195,662,553.73 | 46,150,000.00 | 0 | 30,422,294.00 | 15,808,666.48 | 195,581,593.25 | Related to assets |
| Subtotal | 195,662,553.73 | 46,150,000.00 | 0 | 30,422,294.00 | 15,808,666.48 | 195,581,593.25 |
Note: It refers to deferred income accordingly transferred out due to the disposal of Zhoushan YushanPetrochemical Engineering Co., Ltd., which was no longer brought into the consolidation scope.
4. Government subsidies included in current profits and losses
?Applicable □Not applicable
Unit: RMB
| Accounting subject | Current period cumulative | Preceding period comparative |
| Amount of government subsidies included in other income | 828,795,283.39 | 2,359,477,514.76 |
| Impacted amount of financial discount on total profit | 5,926,400.00 | |
| Total | 834,721,683.39 | 2,359,477,514.76 |
XII. Risks Relating to Financial Instruments
1. Various risks arising from financial instruments
The Company conducts risk management to seek the appropriate balance between the risks and benefits fromits use of financial instruments and to mitigate the adverse effects that the risks of financial instruments have onthe Company’s financial performance. Based on this objective, the Company’s basic policy for risk managementis to confirm and analyze all kinds of risks faced by the Company, set up an appropriate risk bottom line, conductrisk management, and monitor all risks promptly and reliably to limit risks within a specific range. The Companyfaces various risks related to financial instruments in its daily activities, mainly including credit risk, liquidity riskand market risk. The Management has deliberated and approved the policies governing such risks, as outlinedbelow.
(I) Credit risk
Credit risk refers to the risk that may bring financial loss to one party of the financial tool caused by the otherparty’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 instrumentshas increased significantly since initial recognition. When confirming whether the credit risks have increasedsignificantly 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 ratingsand forward-looking information, without incurring additional costs or efforts. Based on a single financialinstrument or a combination of financial instruments with similar credit risk characteristics, the Companycompares the default risks of the financial instruments on the balance sheet date with the default risks on theinitial recognition date so as to determine changes in the expected default risks of financial instruments during theduration.
When one or more of the following quantitative and qualitative criteria is/are triggered, the Companyconsiders 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 thebalance 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 financialsituation, and existing or expected changes in the technical, market, economic or legal environment, which willhave 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 thefinancial 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 circumstancesdue 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 andforward-looking information of historical statistical data (such as counterparty rating, guarantee method, collateraltype and repayment method), and established the PD, LGD and EAD models.
3. For the reconciliation between the opening balance and the closing balance of the provision for loss offinancial instruments, please see notes V (I) 3 and V (I) 6 of the financial statements for details.
4. Credit risk exposure and credit risk concentration
The credit risk to the Company mainly comes from monetary funds and accounts receivable. In order tocontrol 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 creditrating, so its credit risk is low.
(2) Receivables
The Company regularly evaluates the credit of customers who trade by credit. According to the creditevaluation results, the Company chooses to trade with recognized customers with good credit and monitors theiraccounts 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 isrequired. Credit risk concentration is managed according to customers. As of December 31, 2023, the Companyhas a certain credit concentration risk, because 53.41% (December 31, 2022: 57.71%) of the Company’s accountsreceivable are from the top five customers ranking in terms of balance. The Company holds no collateral or othercredit 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 balancesheet.
(II) Liquidity risk
Liquidity risk refers to the risk of occurrence of capital shortage when the Company fulfills its obligationssettled by delivering cash or other financial assets. It may result from the inability to sell financial assets at fairvalue as soon as possible; or because the other party is unable to repay its contractual debts; or from debts due inadvance; 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-termfinancing methods to optimize the financing structure, so as to maintain the balance between financingsustainability and flexibility. The Company has obtained bank credit lines from a number of commercial banks tomeet working capital needs and capital expenditure.Financial liabilities are classified by remaining maturity date
| Item | Amount at the end of the period | ||||
| Book value | Undiscounted contract price | Within 1 year | 1— 3 year(s) | Above 3 years | |
| Bank borrowings | 197,839,011,037.27 | 221,286,938,697.31 | 77,162,762,558.85 | 62,140,808,417.55 | 81,983,367,720.91 |
| Trading financial liabilities | 623,298,741.33 | 623,298,741.33 | 78,931,785.08 | 544,366,956.25 | |
| Notes payable | 4,195,471,402.63 | 4,195,471,402.63 | 4,195,471,402.63 | ||
| Accounts payable | 49,744,126,901.38 | 49,744,126,901.38 | 49,744,126,901.38 | ||
| Other payables | 16,691,133,504.47 | 16,691,133,504.47 | 16,691,133,504.47 | ||
| Bonds payable | 2,037,082,007.25 | 2,073,100,000.00 | 2,073,100,000.00 | ||
| Lease liabilities | 213,541,186.47 | 261,662,503.81 | 29,346,490.83 | 55,282,901.20 | 177,033,111.78 |
| Subtotal | 271,343,664,780.80 | 294,875,731,750.93 | 149,974,872,643.24 | 62,740,458,275.00 | 82,160,400,832.69 |
(Cont.)
| Item | Amount at the end of last year | ||||
| Carrying amount | Undiscounted contract price | Within 1 year | 1— 3 year(s) | Above 3 years | |
| Bank borrowings | 177,771,036,728.59 | 226,673,503,345.00 | 43,948,504,913.77 | 40,986,100,131.36 | 141,738,898,299.87 |
| Trading financial liabilities | 588,769,711.55 | 588,769,711.55 | 102,366,489.48 | 486,403,222.07 | |
| Notes payable | 3,408,800,462.03 | 3,408,800,462.03 | 3,408,800,462.03 | ||
| Accounts payable | 69,079,366,976.43 | 69,079,366,976.43 | 69,079,366,976.43 | ||
| Other payables | 3,472,604,671.47 | 3,472,604,671.47 | 3,472,604,671.47 | ||
| Bonds payable | 2,034,827,122.23 | 2,146,200,000.00 | 73,100,000.00 | 2,073,100,000.00 | |
| Lease liabilities | 235,690,816.58 | 273,722,334.25 | 23,875,292.60 | 42,762,902.46 | 207,084,139.19 |
| Subtotal | 256,591,096,488.88 | 305,642,967,500.73 | 120,108,618,805.78 | 43,588,366,255.89 | 141,945,982,439.06 |
(III) Market riskMarket risk means a risk that the fair value or future cash flow of the financial instrument fluctuates due tochanges 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 mayfluctuate due to changes in the market interest rate. The interest-bearing financial instruments with fixed interestrates expose the Company to fair value interest rate risk, and the interest-bearing financial instruments withfloating interest rates expose the Company to cash flow interest rate risk. The Company determines the ratio offixed interest rate and floating interest rate financial instruments according to the market environment, andmaintains an appropriate combination of financial instruments through regular review and monitoring. The cashflow interest rate risk faced by the Company is mainly related to the bank borrowings with floating interest rates.As of December 31, 2023, the bank borrowings with a floating interest rate of the Company are RMB
157,889.1476 million, and EUR 60.7927 million (December 31, 2022: RMB 138260.1218 million). Under theassumption that other variables remain unchanged, assuming that the interest rate changes by 50 benchmark points,will not have a significant impact on the total profits and shareholders’ equity.
2. Foreign exchange risk
Foreign exchange risk means a risk that the fair value or future cash flow of a financial instrument fluctuatesdue to a change in the foreign exchange rate. The risk of exchange rate changes faced by the Company is mainlyrelated to the Company’s foreign currency monetary assets and liabilities. For foreign currency assets andliabilities, in case of short-term imbalance, the Company will buy and sell foreign currencies at the marketexchange 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 innote V (V) 1 of Notes to Items in the Consolidated Financial Statements.
XIII. Disclosure of Fair Value
1. Fair value at the end of the period of assets and liabilities measured at fair value
Unit: RMB
| Item | Ending fair value | ||||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | ||
| I. Sustained measurement of fair value | -- | -- | -- | -- | |
| 1. Trading financial assets and other non-current financial assets | |||||
| (1) Financial assets at fair value through gain and loss | 100,866,121.14 | 209,221,308.31 | 310,087,429.45 | ||
| Derivative financial assets | 100,866,121.14 | 209,221,308.31 | 310,087,429.45 | ||
| 2. Receivables financing | 175,036,242.93 | 175,036,242.93 | |||
| Total assets continuously measured at fair value | 100,866,121.14 | 209,221,308.31 | 175,036,242.93 | 485,123,672.38 | |
| 3. Trading financial liabilities | |||||
| (1) Trading financial liabilities | 623,298,741.33 | 623,298,741.33 | |||
| Derivative financial liabilities | 623,298,741.33 | 623,298,741.33 | |||
| Total liabilities continuously measured at fair value | 623,298,741.33 | 623,298,741.33 | |||
| II. Unsustained fair value measurement | -- | -- | -- | -- | |
2. Basis for determination of the market prices of sustained and unsustained Level 1 fair valuemeasurement items
It is based on the floating gain and loss amount determined by the futures and paper cargo position contractin accordance with the fair value on the balance sheet date.
3. Qualitative and quantitative information of valuation techniques and important parameters adoptedfor sustained and unsustained level 2 fair value measurement items
For the reconciliation between the opening balance and the closing balance of the provision for loss offinancial instruments, please see notes V (I) 3 and V (I) 6 of the financial statements for details.
4. Qualitative and quantitative information of valuation techniques and important parameters adoptedfor sustained and unsustained level 3 fair value measurement itemsBasis: the fair value is determined by using a specific valuation technique, and the important parametersadopted include interest rates that cannot be directly observed and so on.XIV. Related Party and Related Transactions
1. The Company’s parent company
| Name of parent company | Place of registration | Business nature | Registered capital | Proportion of the Company’s shares held by the parent company | Proportion of the Company’s voting rights held by the parent company |
| Zhejiang Rongsheng Holding Group Co., Ltd. | Xiaoshan, Zhejiang | Industrial investment | 83,466.4 | 51.46% | 51.46% |
Information about the Company’s parent company
The ultimate controlling party of the Company is Li Shuirong.Other information:
Li Shuirong directly holds 6.35% equity in the Company. Zhejiang Rongsheng Holding Group Co., Ltd.holds 51.46% of the equity of the Company, and Li Shuirong holds 63.523% of the equity of Zhejiang RongshengHolding Group Co., Ltd., thus indirectly holding 32.69% of the equity of the Company, with a total of holding
39.04% of the equity of the Company.
2. Information on subsidiaries of the Company
For details of the subsidiaries of the Company, please refer to Note VII to the financial statements.
3. The Company’s joint ventures and associated enterprises
For details of the important joint ventures or associated enterprises of the Company, please refer to the notesin Note VII to the financial statements.Other joint ventures and associated enterprises that form balances in related party transactions with the Companyin 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.[Note 1] | 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.[Note 2] | Associated enterprise |
| Zhoushan ZPC Zhougang Tugboat Co., Ltd. | Associated enterprise |
Other information:
[Note 1] The company was cancelled on October 26, 2023[Note 2] The company was cancelled on December 4, 2023[Note 2] The company was cancelled on October26, 2023
4. Other related parties
| Name of other related parties | Relationship between other related parties and the Company |
| Li Jumei | Close family member of the actual controller |
| Sanyuan Holding Group Co., Ltd. | Controlled by a family member close to the actual controller |
| Sanyuan Holding Group Hangzhou Thermal Power Co., Ltd. | Controlled by a family member close to the actual controller |
| Zhejiang Saintyear Textile Co., Ltd. | Controlled by a family member close to the actual controller |
| Zhejiang Rongtong Logistics Co., Ltd. | The same ultimate actual controller |
| Ningbo Rongxiang Logistics Co., Ltd. | The same ultimate actual controller |
| Thermal Power Co., Ltd. of Ningbo Economic and Technological Development Zone | The same ultimate actual controller |
| Ningbo United Group Co., Ltd. | The same ultimate actual controller |
| Qijiashan Hotel of Ningbo United Group Co., Ltd. | The same ultimate actual controller |
| Suzhou Shenghui Equipment Co., Ltd. | The same ultimate actual controller |
| Hangzhou Shengyuan Real Estate Development Co., Ltd. | The same ultimate actual controller |
| Hangzhou Shengyuan Property Service Co., Ltd. | The same ultimate actual controller |
| Daishan Chenyu Real Estate Co., Ltd. | The same ultimate actual controller |
| Rongsheng Coal Co., Ltd. | The same ultimate actual controller |
| Rongsheng Energy Co., Ltd. | The same ultimate actual controller |
| Ningbo Qingzhi Chemical Terminal Co., Ltd. | The same ultimate actual controller |
| Ningbo Qijiashan Chemical Terminal Co., Ltd. | The same ultimate actual controller |
| Ningbo Haineng Blend Oil Co., Ltd. | The same ultimate actual controller |
| Hong Kong Yisheng Co., Ltd. | Subsidiary of Hainan Yisheng Petrochemical Co., Ltd. |
| Hong Kong Yisheng Petrochemical Investment Co., Ltd. | Subsidiary of Zhejiang Yisheng Petrochemical Co., Ltd. |
| Ningbo Shengmao Trading Co., Ltd. | Subsidiary of Hong Kong Yisheng Petrochemical Investment Co., Ltd. |
| Zhejiang Yixin Chemical Fiber Co., Ltd. | Subsidiary of Zhejiang Yisheng Petrochemical Co., Ltd. |
| Dongzhan Shipping Co., Ltd. | Associated enterprise of Zhejiang Rongtong Logistics Co., Ltd. |
| Guangsha (Zhoushan) Energy Group Co., Ltd. | Subsidiary of Zhejiang Provincial Petroleum Co., Ltd. |
| Zhejiang Petroleum Integrated Energy Sales Co., Ltd. | Subsidiary of Zhejiang Provincial Petroleum Co., Ltd. |
| Zhejiang Petroleum Storage and Transportation Co., Ltd. | Subsidiary of Zhejiang Provincial Petroleum Co., Ltd. |
| Zhoushan Oil Pipeline Co., Ltd. | Subsidiary of Zhejiang Petroleum Storage and Transportation Co., Ltd. |
| ZHEJIANG PETROLEUM TRADING (SINGAPORE) PTE. LTD. | Subsidiary of Zhejiang Provincial Petroleum Co., Ltd. |
| Aramco Overseas Company B.V. [Note 1] | Shareholder |
| SAUDI ARABIAN OIL COMPANY [Note 1] | Parent company of Aramco Overseas Company B.V. |
| ARAMCO TRADING SINGAPORE PTE LTD [Note 1] | Subsidiary of SAUDI ARABIAN OIL COMPANY |
| SAUDI BASIC INDUSTRIES CORPORATION [Note 1] | Subsidiary of SAUDI ARABIAN OIL COMPANY |
| Sabic (Shanghai) Trading Co Ltd [Note 1] | Subsidiary of SAUDI ARABIAN OIL COMPANY |
| Shanghai Huanqiu Engineering Co., Ltd. | The Company’s actual controller serves as its director |
| Zhoushan Yushan Petrochemical Engineering Co., Ltd. | [Note 2] |
Other information:
Note 1: Aramco Overseas Company B.V. acquired 1,012,552,501 shares of the Company from ZhejiangRongsheng Holding Group Co., Ltd. on March 27, 2023. As a result, its parent company Saudi Arabian OilCompany and related parties became related parties of the Company, and related party transactions with theseentities disclosed in the notes to financial statements cover the period from April to December 2024.Note 2: The Company transferred out the equity of this entity on June 30, 2023. As a result, the Company nolonger held the equity of this entity after the equity transfer, and related party transactions with such entitydisclosed in the notes to financial statements cover the period from July to December 2024.
5. Related party transactions
(1) Related party transactions regarding purchase and sales of goods as well as provision and acceptanceof labor servicesTable of the purchasing of goods and receiving of labor services
Unit: RMB
| Related party | Contents of related party transaction | Current period cumulative | Amount of transactions approved | Whether it exceeds the approved amount of transactions | Preceding period comparative |
| Zhejiang Rongsheng Holding Group Co., Ltd. | Coal and other materials | 15,251,114,785.47 | 16,000,000,000.00 | No | 11,324,977,384.07 |
| Zhejiang Rongtong Logistics Co., Ltd. | Freight | 829,079,472.16 | 1,000,000,000.00 | No | 766,468,495.36 |
| Sanyuan Holding Group Hangzhou Thermal Power Co., Ltd. | Steam | 21,654,594.51 | 30,000,000.00 | No | 27,723,273.38 |
| Zhejiang Saintyear Textile Co., Ltd. | Work clothes and other materials | 17,384,105.66 | 3,000,000.00 | No | |
| Ningbo Hengyi Trading Co., Ltd. | PTA | 618,253,217.70 | 3,000,000,000.00 | No | 2,124,191,035.93 |
| Ningbo Qingzhi Chemical Terminal Co., Ltd. | Lump sum fee for port operation | 74,439,063.16 | 100,000,000.00 | No | 74,556,771.90 |
| Ningbo Rongxiang Logistics Co., Ltd. | Freight | 26,641,187.46 | 70,000,000.00 | No | 51,915,996.27 |
| Hainan Yisheng Petrochemical Co., Ltd. | PTA | 18,030,557.52 | 300,000,000.00 | No | 113,467,387.92 |
| Sabic (Shanghai) Trading Co Ltd | Ethylene glycol | 451,575,907.40 | No | ||
| Suzhou Shenghui Equipment | Equipment and | 269,205,160.24 | 350,000,000.00 | No | 286,522,982.0 |
| Co., Ltd. | materials | 0 | |||
| Zhejiang Yisheng Petrochemical Co., Ltd. | m-phthalic acid | 102,296,411.49 | 120,000,000.00 | No | 39,504,938.18 |
| Ningbo Haineng Blend Oil Co., Ltd. | Warehousing service | 29,783,142.66 | 50,000,000.00 | No | 31,161,452.05 |
| Guangsha (Zhoushan) Energy Group Co., Ltd. | Warehousing service | 171,212,307.87 | 200,000,000.00 | No | 170,569,891.04 |
| Zhejiang Derong chemicals Co. Ltd. | Processing fee, cracking C5 and m-pentadiene | 589,026,230.79 | 1,500,000,000.00 | No | 724,948,545.90 |
| Dongzhan Shipping Co., Ltd. | Freight | 27,587,848.85 | 50,000,000.00 | No | 22,790,577.07 |
| Shanghai Huanqiu Engineering Co., Ltd. | Engineering design service | 28,970,687.63 | No | 16,630,000.00 | |
| Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. | Device guarantee service and maintenance service | 665,220,775.65 | 700,000,000.00 | No | 639,523,965.24 |
| Zhoushan Oil Pipeline Co., Ltd. | Freight | 46,804,825.72 | 30,000,000.00 | No | |
| Zhejiang Petroleum Integrated Energy Sales Co., Ltd. | Diesel | 863,691.17 | 5,000,000.00 | No | 3,464,526.99 |
| ARAMCO TRADING SINGAPORE PTE LTD | Crude oil and naphtha | 715,684,419.41 | No | ||
| SAUDI ARABIAN OIL COMPANY | Crude oil | 66,719,031,294.31 | 71,000,000,000.00 | No | |
| Rongsheng Coal Co., Ltd. | Coal, labor | No | 215,432,135.48 | ||
| Qijiashan Hotel of Ningbo United Group Co., Ltd. | Hotel services | 171,052.90 | 1,000,000.00 | No | 171,361.38 |
| Thermal Power Co., Ltd. of Ningbo Economic and Technological Development Zone | Electricity | 160,963.22 | 1,000,000.00 | No | 242,734.31 |
| Ningbo Shengmao Trading Co., Ltd. | PX, glacial acetic acid | 1,000,000,000.00 | No | 730,930,813.10 | |
| Rongsheng Energy Co., Ltd. | Coal | No | 3,343,896,485.81 | ||
| ZHEJIANG PETROLEUM TRADING (SINGAPORE) PTE. LTD. | Crude oil | 4,120,000,000.00 | No | 1,479,504,525.34 | |
| Total | 86,674,191,702.95 | 99,630,000,000.00 | 22,188,595,278.72 |
Information on goods sold/services provided
Unit: RMB
| Related party | Contents of related party transaction | Current period cumulative | Preceding period comparative |
| Zhejiang Rongsheng Holding Group Co., Ltd. | Electric charge | [Note 1] | [Note 1] |
| Zhejiang Rongtong Logistics Co., Ltd. | Vehicle diesel, PTA | 24,940,833.81 | 1,102,927.84 |
| Hainan Yisheng Petrochemical Co., Ltd. | PTA, PX, cardboard | 223,053,907.61 | 131,781,218.71 |
| Ningbo Coastal Public Pipe Gallery Co., Ltd. | Service charge | 358,742.95 | |
| Ningbo Shengmao Trading Co., Ltd. | PTA、PX | 857,363,452.14 | |
| Zhejiang Yixin Chemical Fiber Co., Ltd. | PTA | 147,504,424.78 | 60,176.99 |
| Zhejiang Yisheng Petrochemical Co., Ltd. | PTA、PX | 9,086,732,238.95 | 5,419,751,790.07 |
| Zhejiang Derong chemicals Co. Ltd. | Cracking C5, C9, diesel, power and energy, consulting services | 943,900,741.37 | 1,423,173,368.85 |
| Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. | Vehicle diesel | 2,464,159.29 | 702,654.87 |
| Zhoushan Oil Pipeline Co., Ltd. | Consulting services | 2,931,776.45 | |
| Suzhou Shenghui Equipment Co., Ltd. | Vehicle diesel | 20,353.98 | 30,973.45 |
| Ningbo Rongxiang Logistics Co., Ltd. | Vehicle diesel | 4,784,882.22 | 1,113,649.60 |
| Zhejiang Petroleum Integrated Energy Sales Co., Ltd. | Vehicle diesel and gasoline | 552,873,665.11 | 436,779,858.10 |
| Zhejiang Jurong Petroleum & Chemical Sales Co., Ltd. | Diethylene glycol and ethylene glycol | [Note 2] | [Note 2] |
| Zhoushan ZPC Zhougang Tugboat Co., Ltd. | Vehicle diesel and service charge | 12,288,361.89 | 10,193,898.11 |
| ARAMCO TRADING SINGAPORE PTE LTD | Diesel and aviation kerosene | 837,228,882.63 | |
| ZHEJIANG PETROLEUM TRADING (SINGAPORE) PTE. LTD. | Crude oil | [Note 3] | [Note 3] |
| SAUDI BASIC INDUSTRIES CORPORATION | PTA | 562,937,837.46 | |
| Ningbo Hengyi Trading Co., Ltd. | PTA | 446,053,097.35 | |
| Zhejiang Saintyear Textile Co., Ltd. | Polyester filament | 322.09 | |
| Zhejiang Kunsheng Petroleum & Chemical Sales Co., Ltd. | Petroleum benzene, ethylene glycol, PX | [Note 2] | [Note 2] |
| Zhoushan Yushan Petrochemical Engineering Co., Ltd. | Electricity | 227,688,076.20 | |
| Total | 13,487,072,336.84 | 7,870,743,936.03 |
Note to related party transactions of goods purchase & sale and labor services rendering & receiving
[Note 1] The Company sold RMB 1,374,709.77 of electricity to Zhejiang Rongsheng Holding Group Co.,Ltd. this year (the book has been recognized to be zero by net method), and the electricity sold to ZhejiangRongsheng Holding Group Co., Ltd. in the same period last year amounted to RMB 1,427,049.42.
[Note 2] The Company sells its products through the related party Zhejiang Jurong Petrochemical Sales Co.,Ltd., and the accumulated transaction amount through this company this year was RMB 56,928,200; Thecumulative transaction amount of products sold through related parties Zhejiang Kunsheng Petrochemical SalesCo., Ltd. and Zhejiang Jurong Petrochemical Sales Co., Ltd. in the same period of last year was RMB16,467,983,900
[Note 3] The Company sells products for ZHEJIANG PETROLEUM TRADING (SINGAPORE) PTE. LTD.,and the cumulative sales amount through this company this year was RMB 1,108,514,100; The cumulative salesamount through this company in the same period of last year was RMB 1,168,597,800
(2) Related leasing
The Company acts as the Lessor:
Unit: RMB
| Name of lessee | Type of leased asset | Rental income recognized in the current period | Rental income recognized in the previous period |
| Hainan Yisheng Petrochemical Co., Ltd. | House rental | 595,085.28 | |
| Zhejiang Rongtong Logistics Co., Ltd. | House rental | 1,284,403.67 | 1,238,938.05 |
The Company acts as the Lessee:
Unit: RMB
| Name of lessor | Type of leased asset | Rental expenses for short-term leases and leases of low-value assets on a simplified basis (if applicable) | Rent paid | ||
| Current period cumulative | Preceding period comparative | Current period cumulative | Preceding period comparative | ||
| Hangzhou Shengyuan Property Service Co., Ltd. | Parking space | 175,428.61 | |||
| Hangzhou Shengyuan Real Estate Development Co., Ltd. | House leasing | 4,276,509.52 | 3,695,254.32 | ||
| Zhejiang Rongsheng Holding Group Co., Ltd. | House leasing | 550,458.72 | 550,458.72 | ||
| Zhejiang Yixin Chemical Fiber Co., Ltd. | House leasing | 365,845.33 | 1,015,495.53 | ||
(3) Affiliated guarantees
The Company as guarantor
Unit: RMB
| Secured party | Guarantee amount | Starting date of the guarantee | Ending date of the guarantee | Whether the guarantee has been performed |
| Zhejiang Rongsheng Holding Group Co., Ltd. | 70,879,762,340.15 | January 29, 2021 | June 11, 2028 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd., the Company | 4,035,244,000.00 | December 08, 2022 | December 08, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 1] | 538,291,939.80 | April 28, 2020 | April 01, 2029 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 2] | 1,195,833,333.30 | May 08, 2021 | January 15, 2026 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 3] | 2,463,974,848.44 | November 22, 2021 | October 20, 2027 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 4] | 129,494,713.67 | June 09, 2020 | June 15, 2026 | No |
| Zhejiang Rongsheng Holding Group Co., | 2,508,000,000.00 | October 12, 2022 | October 12, 2025 | No |
| Ltd.[Note 5] | ||||
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 6] | 15,169,699,810.99 | November 14, 2022 | October 30, 2030 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd., the Company, Li Shuirong, Li Jumei [Note 7] | 19,223,805,316.59 | July 31, 2018 | July 30, 2030 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 8] | 29,929,017,600.00 | January 20, 2021 | January 19, 2033 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 9] | 3,831,666,666.64 | January 14, 2021 | August 29, 2026 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd. | 3,234,829,429.15 | July 07, 2023 | June 26, 2026 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 10] | 100,000,000.00 | July 10, 2023 | March 05, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd. | 22,088,051,116.84 | February 09, 2023 | November 08, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd. | 9,535,910,524.78 | January 27, 2021 | October 14, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd. | 155,604,705.86 | April 27, 2023 | December 30, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 5] | 27,454,888.08 | October 20, 2023 | May 15, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 5] | 681,603,293.98 | October 31, 2023 | February 26, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 6] | 239,692,654.33 | April 25, 2023 | August 26, 2026 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 6] | 143,406,472.46 | July 24, 2023 | January 31, 2026 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd., the Company | 1,171,500,000.00 | August 03, 2023 | March 26, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd., the Company, Li Shuirong, Li Jumei [Note 7] | 10,802,077.44 | June 06, 2019 | January 01, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd., the Company, [Note 8] | 3,644,856.58 | April 07, 2021 | May 20, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd., the Company, [Note 8] | 54,212,339.39 | July 29, 2021 | January 31, 2026 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd. | 5,361,425,939.00 | August 16, 2022 | October 30, 2024 | No |
| Zhejiang Rongsheng Holding Group Co., Ltd.[Note 5] | 327,210,000.00 | July 18, 2023 | July 20, 2024 | No |
Description of related guarantee[Note 1] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for100% of the guarantee amount. Ningbo Niluoshan New Energy Co., Ltd., a subsidiary of the Company, providedmortgage guarantee for fixed assets and intangible assets of RMB 103,511,200.[Note 2] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for100% of the guarantee amount. Ningbo Zhongjin Petrochemical Co., Ltd., a subsidiary of the Company, providedmortgage guarantee with fixed assets of RMB 4,437,090,200.[Note 3] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for100% of the guarantee amount. The subsidiary Zhejiang Yisheng New Materials Co., Ltd. has provided amortgage guarantee with machinery and equipment worth RMB 3,850,830,100.[Note 4] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for50% of the guarantee amount. The subsidiary Zhejiang Yisheng New Materials Co., Ltd. has provided a mortgageguarantee with machinery and equipment worth RMB 1,162,730,900.
[Note 5] Zhejiang Rongsheng Holding Group Co., Ltd. provides joint liability guarantee for 60% of theguarantee amount.[Note 6] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for100% of the guarantee amount. The subsidiary Zhejiang Petroleum & Chemical Co., Ltd. has provided a mortgageguarantee with the completed assets of the newly added 1.4 million tons/year ethylene and downstream chemicalplant (Phase II project product structure optimization) project (including but not limited to the mortgage guaranteeprovided in the form of land use right, above-ground structures and equipment of the project after the completionacceptance of the construction project).[Note 7] Zhejiang Rongsheng Holding Group Co., Ltd. and the Company have provided joint and severalliability 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 anannual output of 40 million tons (including but not limited to the mortgage guarantee provided in the form of landuse right, above-ground structures and equipment of the project after the completion acceptance of theconstruction project).[Note 8] Zhejiang Rongsheng Holding Group Co., Ltd. and the Company have provided joint and severalliability 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 anannual output of 40 million tons (including but not limited to the mortgage guarantee provided in the form of landuse right, above-ground structures and equipment of the project after the completion acceptance of theconstruction project).[Note 9] Zhejiang Rongsheng Holding Group Co., Ltd. has provided joint and several liability guarantees for100% of the guarantee amount. The subsidiary Zhejiang Petroleum & Chemical Co., Ltd. has provided a mortgageguarantee with machinery and equipment worth RMB 4,759.2430 million[Note 10] Zhejiang Rongsheng Holding Group Co., Ltd. provided joint and several liability guarantee for 100%of the amount guaranteed. The Company’s subsidiary Zhejiang Yongsheng Technology Co., Ltd. provided pledgedguarantee with certificates of deposit of 25.00 million yuan.
(4) Remuneration of key management personnel
Unit：RMB 10,000
| Item | Current period cumulative | Preceding period comparative |
| Remuneration of key management personnel | 1,259.14 | 1,526.77 |
(5) Other related transactions
1. Fund borrowing from/to related parties
(1) At the beginning of the period, the Company had RMB 1,539.5134 million payable to ZhejiangRongsheng Holding Group Co., Ltd.; in the current period, the Company has borrowed RMB 19,821.00 millionfrom Zhejiang Rongsheng Holding Group Co., Ltd., made RMB 183.0102 million provisions for fund possessioncost, and returned RMB 6,927.76 million of principal and interest on a cumulative basis. As of December 31,2023, the amount payable by the Company is RMB 14,615.7636 million.
In the current period, the subsidiary Zhejiang Shengyuan Chemical Fiber Co., Ltd. has borrowed RMB1,700.00 million from Zhejiang Rongsheng Holding Group Co., Ltd. and returned RMB 1,700.00 million on acumulative basis. As of December 31, 2023, Zhejiang Shengyuan Chemical Fiber Co., Ltd. has fully repaid theabove amount.
(2) At the beginning of the period, the entrusted loan and the related interest payable of Zhejiang YishengNew Materials Co., Ltd. to Zhejiang Yisheng Petrochemical Co., Ltd. were RMB 988.00 million and RMB 1.4339
million, respectively. In the current period, RMB 988.00 million was paid in due course, RMB 786.00 million ofthe entrusted loan was received, RMB 40.6975 million of entrusted loan interest was accrued, and RMB 40.9822million of entrusted loan interest was paid. As of December 31, 2023, RMB 786.00 million of entrusted loan andRMB 1.1492 million of entrusted loan interest were not yet due for payment.
(3) At the beginning of the period, the subsidiary Zhejiang Petroleum & Chemical Co., Ltd. had receivablesof 4.80 million yuan from ZPC ENN (Zhoushan) Gas Co., Ltd. In the current period, it lent funds of 6.00 millionyuan, accrued interest of 0.26 million yuan, and recovered principal and interest of 0.26 million yuan. As ofDecember 31, 2023, the balance was 10.80 million yuan.
2. As of December 31, 2023, the subsidiary Zhejiang Petroleum & Chemical Co., Ltd. had made RMB577,467,823.24 of house payments to Daishan Chenyu Real Estate Co., Ltd. on a cumulative basis.
As of December 31, 2023, the subsidiaries Yisheng Dahua Petrochemical Co., Ltd. and Zhejiang Petroleum& Chemical Co., Ltd. had accumulatively made payments for engineering equipment of 116.12 million yuan toSuzhou Shenghui Equipment Co., Ltd.
As of December 31, 2023, the subsidiary Zhejiang Yisheng New Materials Co., Ltd. had accumulativelymade payments for engineering equipment of 11.00 million yuan to Zhejiang Dongjiang Green PetrochemicalTechnology Innovation Center Co., Ltd. concerning the construction contracts in progress.
As of December 31, 2023, the subsidiary Zhejiang Petroleum & Chemical Co., Ltd. had accumulativelymade payments for engineering equipment of 37.28 million yuan to Zhejiang Dingsheng PetrochemicalEngineering Co., Ltd.
3. In the current period, the subsidiary Rongsheng Petrochemical (Singapore) Pte. Ltd. had paper transactionswith Hong Kong Yisheng Co., Ltd., with investment income of USD 2,343,288.37. It also had paper transactionswith Hong Kong Yisheng Petrochemical Investment Co., Ltd., with investment income of USD 2,698,895.30.
4. As of December 31, 2023, the deposit balance of the Company and its subsidiaries in the related partyZhejiang Xiaoshan Rural Commercial Bank Co., Ltd. was RMB 602,458,616.33, USD 1,066,990.04 and EUR
129.66.
5. Assets transfer of the related parties
| Transferee | Content of related party transactions | Type of related party transactions | Time | Pricing principle of related party transactions | Amount |
| Hainan Yisheng Petrochemical Co., Ltd. | Fixed assets | Transfer | 2023 | Agreed price | 29,203,539.82 |
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
| Project | Related party | Closing balance | Opening balance | ||
| Book balance | Bad-debt provision | Book balance | Bad-debt provision | ||
| Accounts receivable | |||||
| Zhejiang Yisheng Petrochemical Co., Ltd. | 317,158,242.68 | 38,391,748.43 | 328,112,466.43 | 18,074,604.36 | |
| SAUDI BASIC INDUSTRIES CORPORATION | 71,159,154.19 | 3,557,957.71 | |||
| Zhejiang Derong chemicals Co. Ltd. | 57,463,699.62 | 2,873,184.98 | |||
| Zhejiang Kunsheng Petroleum & Chemical Sales Co., Ltd. | 299,160,177.48 | 14,958,008.87 | |||
| Subtotal | 445,781,096.49 | 44,822,891.12 | 627,272,643.91 | 33,032,613.23 | |
| Advance payment | |||||
| Ningbo Hengyi Trading Co., Ltd. | 6,000,000.00 | ||||
| Hangzhou Shengyuan Real Estate Development Co., Ltd. | 3,567,132.35 | 3,063,364.94 | |||
| Ningbo Shengmao Trading Co., Ltd. | 52,067,253.14 | ||||
| Subtotal | 9,567,132.35 | 55,130,618.08 | |||
| Other receivables | |||||
| ZPC-ENN (Zhoushan) Gas Co., Ltd. | 10,800,000.00 | 1,893,309.57 | 4,800,000.00 | 523,802.73 | |
| Rongsheng Energy Co., Ltd. | 10,665.06 | 533.25 | 14,992.79 | 749.64 | |
| Hong Kong Yisheng Co., Ltd. | 1,135,320.34 | ||||
| Hong Kong Yisheng Petrochemical Investment Co., Ltd. | 412,896.31 | ||||
| Subtotal | 10,810,665.06 | 1,893,842.82 | 6,363,209.44 | 524,552.37 |
(2) Payables
Unit: RMB
| Project | Related party | Ending book balance | Beginning book balance | |
| Accounts payable | Rongsheng Petrochemical (Singapore) Pte. Ltd. [Note] | 17,500,740,384.58 | 33,752,876,000.52 | |
| Ningbo Zhongjin Petrochemical Co., Ltd. [Note] | 1,004,420,000.00 | 538,000,000.00 | ||
| Zhejiang Yisheng New Materials Co., Ltd. [Note] | 941,459,043.38 | 1,597,577,255.10 | ||
| Yisheng Dahua Petrochemical Co., Ltd. [Note] | 770,000,000.00 | 2,053,414,700.00 | ||
| Dalian Rongxincheng Trading Co., Ltd. [Note] | 494,747,501.53 | 1,692,694,346.81 | ||
| Zhejiang Rongtong Chemical Fiber New Material Co., Ltd. [Note] | 465,060,958.88 | 21,596,060.00 | ||
| The Company [Note] | 385,000,000.00 | 230,000,000.00 | ||
| Zhejiang Petroleum & Chemical Co., Ltd. [Note] | 380,248,726.38 | 2,265,876,894.64 | ||
| Zhejiang Shengyuan Chemical Fiber Co., Ltd. [Note] | 158,000,000.00 | 40,288,400.00 | ||
| Dalian Yisheng New Materials Co., Ltd. [Note] | 19,500,000.00 | |||
| SAUDI ARABIAN OIL COMPANY | 7,482,166,334.12 | |||
| ARAMCO TRADING SINGAPORE PTE LTD | 365,498,003.53 | |||
| Guangsha (Zhoushan) Energy Group Co., Ltd. | 22,833,934.16 | |||
| Zhejiang Rongtong Logistics Co., Ltd. | 114,735,427.56 | 294,356,317.53 | ||
| Suzhou Shenghui Equipment Co., Ltd. | 19,581,790.48 | 35,726,908.47 | ||
| Ningbo Qingzhi Chemical Terminal Co., Ltd. | 6,456,923.33 | 11,606,791.20 | ||
| Zhoushan Oil Pipeline Co., Ltd. | 6,309,654.33 | ||
| Shanghai Huanqiu Engineering Co., Ltd. | 3,672,000.00 | ||
| Zhejiang Saintyear Textile Co., Ltd. | 3,196,676.08 | ||
| Dongzhan Shipping Co., Ltd. | 2,668,604.42 | 4,563,302.75 | |
| Ningbo Haineng Blend Oil Co., Ltd. | 379,208.29 | ||
| Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. | 320,000.00 | ||
| Zhejiang Derong chemicals Co. Ltd. | 175,832,956.88 | ||
| Ningbo Rongxiang Logistics Co., Ltd. | 1,811,859.97 | 7,324,253.61 | |
| Daishan Chenyu Real Estate Co., Ltd. | 5,541,000.66 | ||
| Electric Power Branch, Thermal Power Co., Ltd. of Ningbo Economic and Technological Development Zone | 53,941.82 | 12,062.48 | |
| Ningbo United Group Co., Ltd. | 8,058.00 | 8,058.00 | |
| Subtotal | 30,129,369,030.84 | 42,746,795,308.65 | |
| Contract liabilities and other current liabilities | |||
| Zhejiang Petroleum Integrated Energy Sales Co., Ltd. | 23,731,636.49 | 1,061,404.81 | |
| Zhejiang Rongtong Logistics Co., Ltd. | 2,268,575.00 | ||
| Ningbo Shengmao Trading Co., Ltd. | 302,096.62 | ||
| Zhoushan ZPC Zhougang Tugboat Co., Ltd. | 254,037.39 | 1,639,886.33 | |
| Zhejiang Saintyear Textile Co., Ltd. | 11,048.15 | 45,602.11 | |
| Zhejiang Jurong Petroleum & Chemical Sales Co., Ltd. | 1,825,881.25 | ||
| Subtotal | 26,567,393.65 | 4,572,774.50 | |
| Other payables | |||
| Zhejiang Rongsheng Holding Group Co., Ltd. | 14,615,763,666.09 | 1,539,513,447.19 | |
| Zhejiang Yisheng Petrochemical Co., Ltd. | 787,149,197.50 | 989,433,904.99 | |
| Zhoushan Yushan Petrochemical Engineering Co., Ltd. | 160,956,591.37 | ||
| Zhejiang Dingsheng Petrochemical Engineering Co., Ltd. | 11,700.00 | ||
| Zhejiang Yixin Chemical Fiber Co., Ltd. | 365,845.33 | 1,015,495.53 | |
| Subtotal | 15,564,247,000.29 | 2,529,962,847.71 |
Note: They refer to letters of credit issued by the Company and its subsidiaries, which had been discountedby Rongsheng Petrochemical (Singapore) Pte. Ltd., Ningbo Zhongjin Petrochemical Co., Ltd., Zhejiang YishengNew Materials Co., Ltd., Yisheng Dahua Petrochemical Co., Ltd., Dalian Rongxincheng Trading Co., Ltd,Zhejiang Rongtong Chemical Fiber New Materials Co. Ltd., the Company, Zhejiang Petroleum & Chemical Co.,Ltd. and Zhejiang Shengyuan Chemical Fiber Co., Ltd. upon receipt.XV. Commitments and Contingencies
1. Major commitments
Significant commitments at the balance sheet date
(I) Significant commitments
1. As of December 31, 2023, the Company and its subsidiaries Zhejiang Shengyuan Chemical Fiber Co., Ltd.,
Yisheng Dahua Petrochemical Co., Ltd., Zhejiang Petroleum & Chemical Co., Ltd., Rongsheng Petrochemical(Singapore) Pte. Ltd., Zhejiang Yongsheng Technology Co., Ltd., Ningbo Zhongjin Petrochemical Co., Ltd.,Zhejiang Yisheng New Materials Co., Ltd. and Zhejiang Yongsheng Technology Co., Ltd. had letters of creditissued but unused totaling 25,868.30 million yuan, USD 3,182.32 million, EUR 83.60 million and GBP 0.63million at Bank of Communications Co., Ltd. Hangzhou Xiaoshan Branch and other financial institutions.
2. As of December 31, 2023, the undue letters of guarantee of the Company and its subsidiaries are asfollows:
Unit：RMB 10,000
| Issuing bank | Name of issuing company | Beneficiary | Guarantee amount |
| Shanghai Pudong Development Bank Co., Ltd. Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Guiyan Resources (Yimen) Co., Ltd | CNY 9,340.80 |
| Shanghai Pudong Development Bank Co., Ltd. Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Customs of the People’s Republic of China | CNY 91,505.00 |
| Shanghai Pudong Development Bank Co., Ltd. Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Branch of Standard Chartered Bank (China) Limited | CNY 42,000.00 |
| Agricultural Bank of China Limited Xiaoshan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Customs of the People’s Republic of China | CNY 91,065.00 |
| China Construction Bank Corporation Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Mitsubishi Commercial Metal Trading (China) Co., Ltd. | CNY 7,069.55 |
| China Construction Bank Corporation Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | CCCC Water Resources and Hydropower Construction Co., Ltd. | CNY 300.00 |
| China Construction Bank Corporation Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Customs of the People’s Republic of China | CNY 50,000.00 |
| China Construction Bank Corporation Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Guiyan Resources (Yimen) Co., Ltd | CNY 12,862.25 |
| Bank of China Co., Ltd., Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Customs of the People’s Republic of China | CNY 65,915.00 |
| Huaxia Bank Co., Ltd., Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Customs of the People’s Republic of China | CNY 36,010.00 |
| Wenzhou Bank Co., Ltd., Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Customs of the People’s Republic of China | CNY 28,960.00 |
| Hangzhou Xiaoshan Branch of Bank of Communications Co., Ltd. | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Customs of the People’s Republic of China | CNY 13,650.00 |
| Ping An Bank Co., Ltd. Ningbo Zhenhai Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Customs of the People’s Republic of China | CNY 32,000.00 |
| Industrial and Commercial Bank of China Limited, Zhoushan Branch | Zhejiang Petroleum & Chemical Co., Ltd. | Hangzhou Customs of the People’s Republic of China | CNY 100,000.00 |
| Dalian Jinpu New Area Branch of Bank of China Limited | Yisheng Dahua Petrochemical Co., Ltd. | Yisheng Dahua Petrochemical Co., Ltd. | CNY 10,000.00 |
2. Contingencies
(1) Important contingencies on balance sheet date
As of the balance sheet date, the Company has no important contingencies that need to be disclosed.
(2) Explanation even if the Company has no important contingencies to be disclosedThe Company has no important contingencies to be disclosed.XVI. Events after the Balance Sheet Date
Profit distribution after the balance sheet date
| Profit or dividend planned to be distributed | Pursuant to the profit distribution plan deliberated and approved by the 17th meeting of the sixth session of the Board of Directors dated April 24, 2024, the Company plans to distribute cash dividend of 1 yuan (tax inclusive) per 10 shares to all shareholders. The Company plans to distribute cash dividend of 1 yuan (tax inclusive) per 10 shares to all shareholders. Cash dividend totaling 957,314,454.2 yuan (tax inclusive) is to be distributed, which is calculated based on the Company’s total share less accumulative repurchased shares of 552,380,458 shares as of the date of approval for issuing the financial statements, i.e., 9,573,144,542 shares, with remaining undistributed profit carried forward to the following period. The shares of the Company held by the Company through the special securities account for repurchase will not participate in the profit distribution. If the Company’s total share capital changes due to convertible bond conversion, share repurchase, repurchase and cancellation of equity incentive shares granted, grant and registration of reserved shares, etc. before the equity registration date of equity distribution, total distribution amount will be adjusted, with distribution proportion unchanged. |
XVII. Other Important Matters
1. Segment information
(1) Determination basis and accounting policies for reporting segments
Factors considered in determining the segment for the reportThe Company determines its reporting segment based on the internal organizational structure, managementrequirements and internal reporting system, and determines reporting segments on the basis of the industrysegment. The business performance of the petrochemical production business, polyester fiber manufacturingbusiness, and wholesale and retail business have been evaluated, respectively. The assets and liabilities jointlyused with each segment are distributed among different segments according to the scale ratio.
(2) Financial information of the reporting segments
Unit: RMB
| Item | Oil refining production business | Chemical production business | Polyester fiber manufacturing business | Trade business | Inter-segment offset | Total |
| Revenue from main businesses | 121,737,527,065.55 | 205,899,184,720.10 | 14,733,866,831.49 | 233,264,029,312.54 | -251,473,106,575.88 | 324,161,501,353.80 |
| Main business costs | 97,666,424,577.45 | 194,032,228,080.09 | 14,261,450,788.32 | 232,473,056,034.39 | -251,496,013,340.12 | 286,937,146,140.13 |
| Total assets | 353,017,879,416.50 | 61,590,694,751.04 | 17,797,550,104.03 | -57,487,683,959.89 | 374,918,440,311.68 | |
| Total liabilities | 242,535,921,610.80 | 42,256,328,194.48 | 14,555,076,793.84 | -19,097,707,928.73 | 280,249,618,670.39 | |
XVIII. Notes to Main Items of the Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
| Aging | Ending book balance | Beginning book balance |
| Within 1 year (inclusive of 1 year) | 15,627,737.43 | 71,262,020.85 |
| 1-2 years | 3,459,098.34 | 3,349,680.56 |
| 2-3 years | 2,988,301.68 | 115,088.06 |
| Above 3 years | 101,666.96 | |
| 3-4 years | 101,666.96 | |
| Total | 22,176,804.41 | 74,726,789.47 |
(2) Classified disclosure by bad debt accrual method
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Bad-debt provision | Book value | Book balance | Bad-debt provision | Book value | |||||
| Amount | Ratio | Amount | Provision proportion | Amount | Ratio | Amount | Provision proportion | |||
| Accounts receivable with provision for bad debt reserves based on aging portfolio | 22,176,804.41 | 100.00% | 2,125,454.16 | 9.58% | 20,051,350.25 | 74,726,789.47 | 100% | 3,932,595.52 | 5.26% | 70,794,193.95 |
| Total | 22,176,804.41 | 100.00% | 2,125,454.16 | 9.58% | 20,051,350.25 | 74,726,789.47 | 100% | 3,932,595.52 | 5.26% | 70,794,193.95 |
Provision made for bad debt reserves based on aging portfolio: RMB 2,125,454.16.
Unit: RMB
| Name | Closing balance | ||
| Book balance | Bad-debt provision | Provision proportion | |
| Within 1 year | 15,627,737.43 | 781,386.87 | 5.00% |
| 1— 2 year(s) | 3,459,098.34 | 345,909.83 | 10.00% |
| 2-3 year(s) | 2,988,301.68 | 896,490.50 | 30.00% |
| Above 3 years | 101,666.96 | 101,666.96 | 100.00% |
| Total | 22,176,804.41 | 2,125,454.16 | 9.58% |
Provision made for bad debt reserves based on aging portfolio: RMB 2,125,454.16.If the provision for bad debts of accounts receivable is accrued according to the general model of expected credit
loss:
□Applicable ?Not applicable
(3) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RMB
| Category | Opening balance | The amount of change in the current period | Closing balance | |||
| Provision | Recovered or returned | Write-off | Others | |||
| Provision made for bad debt reserves based on aging portfolio | 3,932,595.52 | -1,807,141.36 | 2,125,454.16 | |||
| Total | 3,932,595.52 | -1,807,141.36 | 2,125,454.16 | |||
(4) Accounts receivables and contract assets with top 5 closing balances by debtor
Unit: RMB
| Company name | Closing balance of accounts receivable | Closing balance of contract assets | Closing balance of accounts receivable and contract assets | Proportion of accounts receivable and total closing balance of contract assets | Closing balance of bad debt provision for accounts receivable and impairment provision of contract assets |
| Hangzhou Hengyue New Material Co., Ltd. | 2,101,500.00 | 2,101,500.00 | 9.48% | 105,075.00 | |
| Liyang Dongfa Textile Co., Ltd. | 930,606.91 | 930,606.91 | 4.20% | 46,530.35 | |
| Alpine, S.A.THRU KAPAK TEXTILE CO., LTD. | 857,419.41 | 857,419.41 | 3.87% | 42,870.97 | |
| Zhejiang Juxing Chemical Fiber Co., Ltd. | 744,784.32 | 744,784.32 | 3.36% | 37,239.22 | |
| Huzhou Mingchuang Textile Co., Ltd. | 669,430.81 | 669,430.81 | 3.01% | 66,943.07 | |
| Total | 5,303,741.45 | 5,303,741.45 | 23.92% | 298,658.61 |
2. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Dividends receivable | 1,230,000,000.00 | 300,000,000.00 |
| Other receivables | 2,049,228,160.71 | 374,169,712.95 |
| Total | 3,279,228,160.71 | 674,169,712.95 |
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
| Project (or investee) | Closing balance | Opening balance |
| Hong Kong Sheng Hui Co., Ltd. | 550,000,000.00 | 300,000,000.00 |
| Ningbo Zhongjin Petrochemical Co., Ltd. | 300,000,000.00 | |
| Zhejiang Yongsheng Technology Co., Ltd. | 280,000,000.00 | |
| Zhejiang Shengyuan Chemical Fiber Co., Ltd. | 100,000,000.00 | |
| Total | 1,230,000,000.00 | 300,000,000.00 |
2) Significant dividends receivable aged over 1 year
Unit: RMB
| Project (or investee) | Closing balance | Aging | Reason for the unrecovered amount | Whether impairment occurs and its judgment basis |
| Hong Kong Sheng Hui Co., Ltd. | 300,000,000.00 | Above 3 years | Unrecovered | Subsidiaries and their affiliates operate normally, and no risk is expected in the recovery of funds. |
| Total | 300,000,000.00 |
3) Classified disclosure by bad debt accrual method
□Applicable ?Not applicable
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
| Nature of account | Ending book balance | Beginning book balance |
| Portfolio of transactions between related parties within the consolidation scope | 1,299,250,326.32 | 373,727,461.92 |
| Grants receivables | 744,000,000.00 | |
| Deposit receivable margin portfolio | 6,312,327.58 | 600,000.00 |
| Portfolio of petty cash receivable, etc. | 2,169,706.59 | 2,050,211.43 |
| Total | 2,051,732,360.49 | 376,377,673.35 |
2) Disclosure by aging
Unit: RMB
| Aging | Ending book balance | Beginning book balance |
| Within 1 year (inclusive of 1 year) | 1,676,042,783.57 | 688,096.43 |
| 1-2 years | 373,500,000.00 | |
| 2-3 years | 373,500,000.00 | 6,640.36 |
| Above 3 years | 2,189,576.92 | 2,182,936.56 |
| 3-4 years | 2,189,576.92 | 2,182,936.56 |
| Total | 2,051,732,360.49 | 376,377,673.35 |
3) Classified disclosure by bad debt accrual method
Unit: RMB
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Bad-debt provision | Book value | Book balance | Bad-debt provision | Book value | |||||
| Amount | Ratio | Amount | Provision proportion | Amount | Ratio | Amount | Provision proportion | |||
| Provision made for bad debt reserves based on aging portfolio | 2,051,732,360.49 | 100.00% | 2,504,199.78 | 0.12% | 2,049,228,160.71 | 376,377,673.35 | 100.00% | 2,207,960.40 | 0.59% | 374,169,712.95 |
| Total | 2,051,732,360.49 | 100.00% | 2,504,199.78 | 0.12% | 2,049,228,160.71 | 376,377,673.35 | 100.00% | 2,207,960.40 | 0.59% | 374,169,712.95 |
Accounts receivable with provision for bad debt reserves based on aging portfolio:
Unit: RMB
| Name | Closing balance | ||
| Book balance | Bad-debt provision | Provision proportion | |
| Portfolio of transactions between related parties within the consolidation scope | 1,299,250,326.32 | ||
| Grants receivables | 744,000,000.00 | ||
| Deposit receivable margin portfolio | 6,312,327.58 | 891,924.72 | 14.13% |
| Portfolio of petty cash receivable, etc. | 2,169,706.59 | 1,612,275.06 | 74.31% |
| Total | 2,051,732,360.49 | 2,504,199.78 | 0.12% |
Provision for bad debts is made according to the general model of expected credit loss:
Unit: RMB
| Bad-debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the next 12 months | Expected credit loss over the entire duration (without credit impairment) | Expected credit loss for the entire duration (credit impairment has occurred) | ||
| Balance as of January 1, 2023 | 23,031.73 | 2,184,928.67 | 2,207,960.40 |
| The balance as of January 1, 2023 in the current period | ||||
| Provision in current period | 291,591.13 | 4,648.25 | 296,239.38 | |
| Balance as of December 31, 2023 | 314,622.86 | 2,189,576.92 | 2,504,199.78 |
Book balance changes with significant changes in loss provisions in the current period?Applicable □Not applicable
4) Bad debt provision and its recovery or reversal in the current period
Provision for bad debts in the current period:
Unit: RMB
| Category | Opening balance | The amount of change in the current period | Closing balance | |||
| Provision | Recovered or returned | Write-off or cancellation | Others | |||
| Provision made for bad debt reserves based on aging portfolio | 2,207,960.40 | 296,239.38 | 2,504,199.78 | |||
| Total | 2,207,960.40 | 296,239.38 | 2,504,199.78 | |||
Including: the amount of important bad debt provision reversal or recovery in the current period:
5) Top five debtors with the biggest closing balances of other accounts receivable
Unit: RMB
| Company name | Nature of payment | Closing balance | Aging | Proportion in total closing balance of other receivables | Closing balance of provision for bad debts |
| Rongsheng New Material (Taizhou) Co., Ltd. | Portfolio of transactions between related parties within the consolidation scope | 831,426,855.12 | Within 1 year | 40.52% | |
| People’s government of Yinong Town, Xiaoshan District, Hangzhou | Grants receivables | 644,000,000.00 | Within 1 year | 31.39% | |
| Dalian Yisheng Investment Co., Ltd. | Portfolio of transactions between related parties within the consolidation scope | 373,500,000.00 | 2-3 year(s) | 18.20% | |
| Investment Promotion Agency of Xiaoshan District, Hangzhou | Grants receivables | 100,000,000.00 | Within 1 year | 4.87% | |
| Rongsheng (Zhoushan) New Materials Co., Ltd. | Portfolio of transactions between related parties within the consolidation scope | 60,000,000.00 | Within 1 year | 2.92% | |
| Subtotal | 2,008,926,855.12 | 97.90% |
3. Long-term equity investment
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for impairment | Book value | Book balance | Provision for impairment | Book value | |
| Investment in subsidiaries | 40,951,102,808.47 | 40,951,102,808.47 | 39,462,393,720.56 | 39,462,393,720.56 | ||
| Investment in joint ventures and associated enterprises | 3,916,960,592.70 | 3,916,960,592.70 | 3,742,216,481.79 | 3,742,216,481.79 | ||
| Total | 44,868,063,401.17 | 44,868,063,401.17 | 43,204,610,202.35 | 43,204,610,202.35 | ||
(1) Investment in subsidiaries
Unit: RMB
| Investee | Opening balance (Book value) | Opening balance of impairment provision | Increase and decrease in the current period | Closing balance (Book value) | Closing balance of provision for impairment | |
| Additional investment | Reduced investment | |||||
| Zhejiang Petroleum & Chemical Co., Ltd. | 28,457,242,115.34 | 28,457,242,115.34 | ||||
| Ningbo Zhongjin Petrochemical Co., Ltd. | 5,990,201,140.04 | 5,990,201,140.04 | ||||
| Zhejiang Shengyuan Chemical Fiber Co., Ltd. | 2,030,140,000.00 | 2,030,140,000.00 | ||||
| Dalian Yisheng Investment Co., Ltd. | 1,468,204,457.48 | 1,468,204,457.48 | ||||
| Rongsheng Petrochemical (Singapore) Pte. Ltd. | 620,889,560.00 | 620,889,560.00 | ||||
| Zhejiang Yongsheng Technology Co., Ltd. | 198,306,537.70 | 198,306,537.70 | ||||
| Hong Kong Sheng Hui Co., Ltd. | 141,419,910.00 | 141,419,910.00 | ||||
| Rongsheng International Trading Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Rongxiang Chemical Fiber Co., Ltd. | 3,000,000.00 | 3,000,000.00 | ||||
| Rongsheng International Trading (Hainan) Co., Ltd. | 1,000,000.00 | 1,000,000.00 | ||||
| Rongsheng Chemical (Shanghai) Co., Ltd. | 40,000,000.00 | 40,000,000.00 | ||||
| Rongsheng (Zhoushan) New Materials Co., Ltd. | 130,000,000.00 | 870,000,000.00 | 1,000,000,000.00 | |||
| Rongsheng New Material (Taizhou) Co., Ltd. | 281,990,000.00 | 646,209,000.00 | 28,199,000.00 | 900,000,000.00 | ||
| Rongsheng Petrochemical (Hong Kong) Co., Ltd. | 699,087.91 | 699,087.91 | ||||
| Total | 39,462,393,720.56 | 1,516,908,087.91 | 28,199,000.00 | 40,951,102,808.47 |
(2) Investment in joint ventures and associated companies
Unit: RMB
| Investee | Opening balance (Book value) | Opening balance of impairment provision | Increase and decrease in the current period | Closing balance (Book value) | Closing balance of provision for impairment | |||||||
| Additional investment | Reduced investment | Investment gains or losses recognized under the equity method | Other comprehensive income adjustments | Other equity changes | Declared distribution of cash dividends or profits | Provision for impairment | Others | |||||
| I. Joint ventures | ||||||||||||
| II. Associated enterprise | ||||||||||||
| Zhejiang Yisheng Petrochemical Co., Ltd. | 1,476,728,206.10 | 7,296,676.92 | 2,600,863.91 | 1,486,625,746.93 | ||||||||
| Zhejiang Xiaoshan Rural Commercial Bank Co., Ltd. | 2,006,079,840.15 | 264,616,500.51 | 31,810,383.42 | 39,685,918.80 | 2,262,820,805.28 | |||||||
| Ningbo Hengyi Trading Co., Ltd. | 231,733,252.44 | -64,354,917.51 | 135,705.56 | 167,514,040.49 | ||||||||
| Zhejiang Kunsheng Petroleum & Chemical Sales Co., Ltd. | 13,221,013.56 | 19,212,208.79 | 5,991,195.23 | |||||||||
| Zhejiang Jurong Petroleum & Chemical Sales Co., Ltd. | 14,454,169.54 | 14,464,520.87 | 10,351.33 | |||||||||
| Subtotal | 3,742,216,481.79 | 33,676,729.66 | 213,559,806.48 | 34,546,952.89 | 39,685,918.80 | 3,916,960,592.70 | ||||||
| Total | 3,742,216,481.79 | 33,676,729.66 | 213,559,806.48 | 34,546,952.89 | 39,685,918.80 | 3,916,960,592.70 | ||||||
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□Applicable ?Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable ?Not applicable
4. Operating income and operating costs
Unit: RMB
| Item | Current period cumulative | Preceding period comparative | ||
| Revenue | Cost | Revenue | Cost | |
| Primary business | 3,749,052,513.75 | 3,674,697,564.89 | 3,854,072,437.22 | 3,945,950,073.69 |
| Other Businesses | 52,411,684.97 | 48,284,096.24 | 52,594,679.36 | 76,555,884.57 |
| Total | 3,801,464,198.72 | 3,722,981,661.13 | 3,906,667,116.58 | 4,022,505,958.26 |
Breakdown information of operating income and operating cost:
1) Breakdown of revenue generated by contracts with customers by major categories
| Item | Amount in the current period | Amount in the previous period | ||
| Revenue | Cost | Revenue | Cost | |
| Polyester chemical fiber film | 3,749,052,513.75 | 3,674,697,564.89 | 3,854,072,437.22 | 3,945,950,073.69 |
| Trade and others | 51,127,281.30 | 48,012,650.24 | 51,310,275.69 | 76,284,438.57 |
| Subtotal | 3,800,179,795.05 | 3,722,710,215.13 | 3,905,382,712.91 | 4,022,234,512.26 |
2) Breakdown of income by the time of commodity transfer
| Item | Amount in the current period | Amount in the previous period |
| Revenue recognized at a certain point of time | 3,800,179,795.05 | 3,905,382,712.91 |
| Subtotal | 3,800,179,795.05 | 3,905,382,712.91 |
Other notes
The revenue recognized in the current period included in the opening book value of contract liabilities isRMB 137,779,687.57.Information related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of income corresponding to the performance obligations thathad been signed but had not been fulfilled or had not been fulfilled completely was RMB 137,779,687.57.
5. Investment income
Unit: RMB
| Item | Current period cumulative | Preceding period comparative |
| Long-term equity investment income calculated by equity method | 930,000,000.00 | 2,550,000,000.00 |
| Long-term equity investment income calculated by equity method | 213,559,806.48 | 268,195,976.97 |
| Investment income from disposal of long-term equity investments | 136,583.66 | 61,902.58 |
| Investment income from disposal of trading financial assets | 227,990.03 | |
| Interest income from the inter-bank loan of related party | 15,535,855.12 | |
| Financing discount loss of receivables | -69,752,714.18 | -82,184,988.26 |
| Total | 1,089,479,531.08 | 2,736,300,881.32 |
XVIII. Supplementary Information
1. Breakdown of non-recurring gains and losses in the current period
?Applicable □Not applicable
Unit: RMB
| Item | Amount | Notes |
| Profits and losses on disposal of non-current assets | 34,130,889.49 | |
| Government subsidies included in the current profits and losses (except those closely related to the Company's normal business operations, which are in line with national policies, enjoyed according to certain standards, and have a continuous impact on the Company's profits and losses) | 60,299,389.39 | |
| Except for the effective hedging business related to the Company's normal business, the gains and losses of the fair value changes arising from financial assets and financial liabilities held by non-financial enterprises and the gains and losses arising from the disposal of financial assets and financial liabilities | 483,856,260.59 | |
| Fund possession cost included in current gain and loss charged to non-financial enterprises | 248,144.66 | |
| Other non-operating revenues and expenditures except for the aforementioned items | -7,549,562.66 | |
| Other profit/loss items falling within the definition of non-recurring gain or loss | 14,297,547.73 | |
| Less: Affected amount of income tax | 37,178,195.47 | |
| Affected amount of minority shareholders’ equity (after tax) | 210,051,172.20 | |
| Total | 338,053,301.53 | -- |
Other gain/loss items falling within the definition of non-recurring gain or loss:
□Applicable ?Not applicable
The Company has no other gain/loss items falling within the definition of non-recurring gain or loss.Explanation of the circumstances in which the non-recurring gain and loss items listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure of Companies Publicly Issuing Securities-Non-recurring Gainsand Losses are defined as recurring gains and losses.?Applicable □Not applicable
| Item | Amount involved (yuan) | Reason |
| Net non-recurring gains and losses attributable to owners of the parent company in 2022 | 1,328,549,151.24 | |
| Net non-recurring gains and losses attributable to owners of the parent company calculated in accordance with "Interpretative Announcement for Information Disclosure by Public Securities Issuers No. 1 - Non-Recurring Gains and Losses (Revised in 2023)" for 2022 | 388,666,262.68 | |
| Difference | 939,882,888.56 |
2. Return on equity and earnings per share (EPS)
| Profit within the reporting period | Weighted average return on net assets | Earnings per share (EPS) | |
| Basic earnings per share (RMB per share) | Diluted earnings per share (RMB per share) | ||
| Net profit attributable to ordinary shareholders of the Company | 2.48% | 0.12 | 0.12 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring gains and losses | 1.76% | 0.08 | 0.08 |
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 internationalaccounting standards and China accounting standards
□Applicable ?Not applicable
(2) Differences in net profits and net assets in financial reports disclosed in accordance with foreignaccounting standards and China accounting standards
□Applicable ?Not applicable
(3) Explain the reasons for the differences in accounting data under domestic and foreign accountingstandards. If the data audited by overseas audit institutions are adjusted for differences, the name of theoverseas institution shall be indicated
4. Others
1. Calculation process of weighted average return on net assets
| Item | S/N | Amount in the current period |
| Net profit attributable to ordinary shareholders of the Company | A | 1,158,146,248.89 |
| Non-recurring gains and losses | B | 338,053,301.53 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring gains and losses | C=A-B | 820,092,947.36 |
| Net assets at the beginning of the period attributable to ordinary shareholders of the Company | D | 47,261,560,704.95 |
| Newly added net assets attributable to ordinary shareholders of the Company resulting from new shares issued or debt-to-equity swap | E | |
| Number of months from the following month of increased net assets to the end of the reporting period | F | |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | G1 | 1,476,357,352.20 |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | H1 | 7 |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | G2 | 326,994,018.61 |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | H2 | 4 |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | G3 | 599,918,992.76 |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | H3 | 3 |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | G4 | 392,812,216.07 |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | H4 | 2 | |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | G5 | 728,472,696.77 | |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | H5 | 1 | |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | G6 | 593,406,887.16 | |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | H6 | 0 | |
| Others | Translation reserve | -63,855,113.14 | -63,855,113.14 |
| Increased or decreased number of months from the following month of increased net assets to the end of the reporting period | 6 | 6 | |
| Equity method and other equity changes | 36,031,285.75 | 36,031,285.75 | |
| Increased or decreased number of months from the following month of increased net assets to the end of the reporting period | 6 | 6 | |
| Effect of changes in equity due to changes in holding proportion over subsidiaries | 702,183.76 | 702,183.76 | |
| Increased or decreased number of months from the following month of increased net assets to the end of the reporting period | 0 | 0 | |
| Impact of using OTC derivatives tools to assist in the implementation of repurchase of company shares | 590,642.24 | 590,642.24 | |
| Increased or decreased number of months from the following month of increased net assets to the end of the reporting period | 0 | 0 | |
| Unused safe production fee | 60,677,296.91 | 60,677,296.91 | |
| Decreased net assets attributable to ordinary shareholders of the Company resulting from the repurchase or cash dividends | 6 | 6 | |
| Number of months of the reporting period | K | 12 | |
| Weighted average net assets | L=D+A/2+E×F/K-G×H/K±I×J/K | 46,610,699,593.57 | |
| Weighted average return on net assets | M=A/L | 2.48% | |
| Weighted average return on net assets after deducting non-recurring gains and losses | N=C/L | 1.76% | |
2. Calculation process of basic earnings per share and diluted earnings per share
(1) Calculation process of basic earnings per share
| Item | S/N | Amount in the current period |
| Net profit attributable to ordinary shareholders of the Company | A | 1,158,146,248.89 |
| Non-recurring gains and losses | B | 338,053,301.53 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring gains and losses | C=A-B | 820,092,947.36 |
| Total shares at the beginning of the period | D | 9,842,382,348.00 |
| Increase in the number of shares due to the share capital transferred from the capital reserve or dividend distribution | E | |
| Increase in the number of shares due to new shares issued or debt-to-equity swap | F | |
| Number of months from the following month of increase in the number of shares to the end of the reporting period | G |
| Decrease in the number of shares due to repurchase and other reasons | H1 | 26,678,135.00 |
| Number of months from the following month of increase in the number of shares to the end of the reporting period | I1 | 4 |
| Decrease in the number of shares due to repurchase and other reasons | H2 | 48,753,036.00 |
| Number of months from the following month of increase in the number of shares to the end of the reporting period | I2 | 3 |
| Decrease in the number of shares due to repurchase and other reasons | H3 | 34,586,400.00 |
| Number of months from the following month of increase in the number of shares to the end of the reporting period | I3 | 2 |
| Decrease in the number of shares due to repurchase and other reasons | H4 | 65,343,938.00 |
| Number of months from the following month of increase in the number of shares to the end of the reporting period | I4 | 1 |
| Decrease in the number of shares due to repurchase and other reasons | H5 | 57,928,961.00 |
| Number of months from the following month of increase in the number of shares to the end of the reporting period | I5 | 0 |
| Number of shares reduced during the reporting period | J | |
| Number of months of the reporting period | K | 12 |
| Weighted average number of outstanding ordinary shares | L=D+E+F×G/K-H×I/K-J | 9,810,091,649.17 |
| Basic earnings per share | M=A/L | 0.12 |
| Basic earnings per share after deducting non-recurring gains and losses | N=C/L | 0.08 |
(2) Calculation process of diluted earnings per share
The calculation process of diluted earnings per share is the same as that of basic earnings per share
Rongsheng Petrochemical Co., Ltd.
Chairman: Li Shuirong
April 25, 2024