恒逸石化股份有限公司2021年年度報告（英文版）（403頁）.PDF

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1、Hengyi Petrochemical 2021 Annual Report April 2022 Hengyi Petrochemical 2021 Annual Report Chairmans Statement In 2021,while China celebrated the 100th anniversary of the CPC and got the 14th Five-Year Plan off,Hengyi Petrochemical made steady progress in the strategy of refinery,polyester and polya

2、mide industries.However,we are still facing severe challenges in operation due to the Covid-19 resurgence and the complex and rapidly changing external environment.Only after polishing can a piece of jade be finer.In this extraordinary year,we,all Hengyi staff,achieved a gratifying result with joint

3、 efforts and full vigor.Hitting a new high,we recorded both revenue and total assets exceeding RMB100 billion In the year 2021,we continued to rise to various external challenges,with operating performance reaching a new all-time high.The revenue was RMB128.98 billion,up 49.23%year on year;the total

4、 assets amounted to RMB105.549 billion,up 13.88%year on year.With the revenue and total assets both exceeding RMB100 billion,the Company has achieved its business objectives and development goals,showing its strong growth momentum and vitality.Releasing capacity,we unleash the growth potential In th

5、e year 2021,our industrial chain planning which integrates upstream and downstream was further refined.The Hengyi Brunei Phase I Project continuously operated at full capacity,and many other projects were put into production,including the intelligent environmental and functional fiber project of Hai

6、ning New Materials,the new-type functional fiber project of Fujian Yijin and the 3-mtpa PTA project of Yisheng New Materials.With new capacity fully released,the Companys capacity reached a new level.Accordingly,we have gained strong growth momentum and consolidated our industry leader role.With inn

7、ovation,we empower our high-end intelligent development In the year 2021,following the transformation from Made in China to Intelligent Manufacturing in China,the Company further implemented the strategy of innovation-driven development.The Company has made planning with foresight on long-term proje

8、cts for high-end green products,adding more to the highlights of high-quality development.The Company also has improved the Hengyi Petrochemical 2021 Annual Report integration of data and intelligence,building the first polyester factory with whole-process intelligent storage and transportation syst

9、em in China.Our AI full-detection prototype first applied in the chemical fiber industry was selected as the Industrial Intelligent Pioneer Case at the Intelligent Economy Summit 2021.By leveraging its supply chain,the Company has focused on building Hengyi Brain,an intelligent information platform,

10、to empower the development of chemical fiber industry and create more value.Co-creating and sharing,we improve the talent incentive mechanism In the year 2021,the Company continued to promote its employee stock ownership plan to benefit those at grassroots level.We launched the special campaign of e

11、nsuring frontline stable,solidifying foundation among all employees,which aimed to enable more Hengyi employees to better share our development achievements.The establishment of the long-term development and sharing mechanism has effectively enhanced the sense of belonging and cohesion of employees,

12、increased our attraction to high-level talents,and laid a solid foundation for our stable and sound long-term development.Mountains do not reject fine dust,and rivers do not refuse to fill with water.It is the hard work of every Hengyi employee and the support of leaders,investors and partners that

13、make the Company has the energy and courage to forge ahead.On behalf of the Company,I would like to express my heartfelt thanks to you all!With entering 2022,the ever-changing international community and the COVID-19 resurgence have made the whole market under pressure.This era of challenges and opp

14、ortunities also is a test for our operation and management.As a multinational business,we will explore with a more global perspective,give equal priority to exploring opportunities and preventing and controlling risks,and plan ahead,keep innovating and make steady progress while seeking opportunitie

15、s in changes.Looking forward,as demanded by the high-quality development in the new era and the new pattern of industrial development,we will continue to promote the construction of major strategic projects,including the Brunei Phase II Project,the 1.2-mtpa Caprolactam-Polyamide Integration and Supp

16、orting Project and Suqian Yidas 1.1-mtpa New-type Differentiated Environmental Fiber Project,and make further improvement in integrating the whole industry chain of refinery,polyester and polyamide industries.We will continue to consolidate the foundation of innovation and development through high-i

17、ntensity investment.With Hengyi Research Institute and platforms like Hengyi Petrochemical 2021 Annual Report joint laboratories co-built with top colleges and universities,we will continue to promote the application and transformation of technological achievements,and improve the contribution of sc

18、ientific research and technological innovation to our main business to become a technology leader in the whole industry.We aim to build and operate a long-lasting company that ranks among the worlds top enterprises.This is our mission and also original aspiration.With no fear for the long way ahead,

19、we will work hard and set off a new journey.We will stay true to our original value,make down-to-earth efforts,and keep moving forward to embrace a bright future on our way to the high-quality development and a century-old Hengyi.Monday,April 25,2022 Hengyi Petrochemical 2021 Annual Report 5 Section

20、 1 Important Notes,Contents and Definitions The Board of Directors(BOD),Board of Supervisors(BOS),directors,supervisors and senior managers of the Company guarantee that the contents of the 2021 Annual Report(hereinafter referred to as the Report)are true,accurate and complete,free of false records,

21、misleading statements or major omissions,and that they shall bear relevant individual and joint and several legal liabilities.The financial statements of the Report have been audited by Zhongxinghua Certified Public Accountants LLP,and a standard unqualified audit report has been issued.Qiu Yibo,the

22、 head of the Company,Mao Ying,the person in charge of the accounting work,and Yu Zhicheng,the head of the accounting body(accountant in charge),declared that they would ensure the truthfulness,accuracy and completeness of the financial statements in this Annual Report.The Report has been deliberated

23、 and approved at the 17th meeting of the 11th BOD of the Company.All directors have attended the Board meeting at which this Report was considered.The profit distribution plan approved by the BOD is as follows:a cash bonus of RMB 2.00(tax included)will be distributed to all shareholders for every 10

24、 shares on the base of 3,666,280,014;no bonus shares will be distributed,and no accumulation fund will be converted into share capital.If the Companys total Hengyi Petrochemical 2021 Annual Report 6 share capital on the registration date of dividend-paying equity changes as a result of additional is

25、suance,share repurchase or conversion of convertible bonds into additional capital stock prior to such date,the Company plans to maintain the distribution ratio unchanged and adjust the total share capital.The 2021 Profit Distribution Plan shall also be submitted to the 2021 Annual General Meeting o

26、f Shareholders of the Company for deliberation and approval.Forward-looking statements such as future plans,development strategies,industry discussions and prospects involved in this Report do not constitute the substantive commitment of the Company to investors,and investors are advised to pay atte

27、ntion to investment risks.For possible risks in the operation and development of the Company,please refer to 3.11.2 Possible Risks and Countermeasures in the Future of 3.11 Prospects for the Future Development of the Company of Section 3 Management Discussion and Analysis.Hengyi Petrochemical 2021 A

28、nnual Report 7 Contents Section 1 Important Notes,Contents and Definitions.5 Section 2 Company Profile and Main Financial Indicators.11 Section 3 Management Discussion and Analysis.18 Section 4 Corporate Governance.127 Section 5 Environmental and Social Responsibility.172 Section 6 Important Matters

29、.186 Section 7 Changes in Shares and Shareholders.212 Section 8 Preference Shares.224 Section 9 Bonds.225 Section 10 Financial Report.231 Hengyi Petrochemical 2021 Annual Report 8 List of Documents for Reference 1.Accounting statements signed and stamped by the legal representative,the financial pri

30、ncipal and the head of the accounting body;2.The original audit report stamped by the accounting firm and signed and stamped by the certified public accountant;3.All original documents and original announcements of the Company publicly disclosed on the website designated by CSRC during current perio

31、d.Hengyi Petrochemical 2021 Annual Report 9 Definitions Item Refers to Definition Hengyi Petrochemical/Company/the Company Refers to Hengyi Petrochemical Co.,Ltd.SZSE/the Exchange Refers to Shenzhen Stock Exchange Hengyi Group Refers to Zhejiang Hengyi Group Co.,Ltd.Hengyi Limited Refers to Zhejiang

32、 Hengyi Petrochemical Co.,Ltd.Hengyi Brunei Refers to Hengyi Industries Sdn.Bhd.Zhejiang Yisheng Refers to Zhejiang Yisheng Petrochemical Co.,Ltd.Yisheng New Materials Refers to Zhejiang Yisheng New Materials Co.,Ltd.Yisheng Dahua Refers to Yisheng Dahua Petrochemical Co.,Ltd.Hainan Yisheng Refers t

33、o Hainan Yisheng Petrochemical Co.,Ltd.Hengyi Polymer Refers to Zhejiang Hengyi Polymer Co.,Ltd.Hengyi High-Tech Refers to Zhejiang Hengyi High-Tech Materials Co.,Ltd.Haining New Materials Refers to Haining Hengyi New Materials Co.,Ltd.Haining Thermal Power Refers to Haining Hengyi Thermal Power Co.

34、,Ltd.Taicang Yifeng Refers to Taicang Yifeng Chemical Fiber Co.,Ltd.Jiaxing Yipeng Refers to Jiaxing Yipeng Chemical Fiber Co.,Ltd.Shuangtu New Materials Refers to Zhejiang Shuangtu New Materials Co.,Ltd.Hangzhou Yichen Refers to Hangzhou Yichen Chemical Fiber Co.,Ltd.Shaoxing Hengming Refers to Sha

35、oxing Keqiao Hengming Chemical Fiber Co.,Ltd.Suqian Yida Refers to Suqian Yida New Materials Co.,Ltd.Ningbo Hengyi Trading Refers to Ningbo Hengyi Trading Co.,Ltd.Hong Kong Yisheng Refers to Hong Kong Yisheng Co.,Ltd.Hengyi Singapore Refers to Hengyi Industries International(Singapore)Co.,Ltd.Hangzh

36、ou Yijing Refers to Hangzhou Yijing Chemical Fiber Co.,Ltd.Hengyi Caprolactam Refers to Zhejiang Baling Hengyi Caprolactam Co.,Ltd.China Zheshang Bank Refers to China Zheshang Bank Co.,Ltd.Yisheng Investment Refers to Dalian Yisheng Investment Co.,Ltd.Hong Kong Tianyi Refers to Hong Kong Tianyi Inte

37、rnational Holding Co.,Ltd.Hengyi Investment Refers to Hangzhou Hengyi Investment Co.,Ltd.Hengyi Polyamide Refers to Zhejiang Hengyi Polyamide Co.,Ltd.Brunei Project,PMB Petrochemical Project Refers to The petrochemical project invested and constructed by the company in Brunei Hengyi Petrochemical 20

38、21 Annual Report 10 Item Refers to Definition PX Refers to Paraxylene,a colorless and transparent liquid.It is used to produce plastics,polyester fibers and films.PTA Refers to Purified terephthalic acid,mainly used to produce PET,can also be made into engineering polyester plastics,and be used as t

39、he raw material of plasticizer and dye intermediate.PIA Refers to Isophthalic acid,mainly used in the production of alkyd resin,unsaturated polyester resin and other polymers and plasticizers,as well as in the production of film finishers,coatings,polyester fiber dyeing modifiers and medicines.MEG R

40、efers to Ethylene glycol,mainly used to produce polyester fiber,antifreeze,unsaturated polyester resin,lubricant,plasticizers,nonionic surfactant and explosives,etc.PET and polyester Refers to Polyethylene terephthalate.It is a fiber-forming polymer made from PTA and MEG through direct esterificatio

41、n and continuous polycondensation reaction.POY Refers to Polyester pre-oriented yarn or partially oriented yarn FDY Refers to Fully drawn yarn or polyester drawn yarn DTY Refers to Draw textured yarn,also known as polyester textured yarn CPL Refers to Caprolactam,mainly used to produce polyamide fib

42、er,engineering plastics,plastic film,etc.It is widely used in industrial and civil fields.Differentiated yarn Refers to A variety that is innovative in technology or performance or has some characteristics different from traditional yarns.RMB and RMB 10,000 Refers to RMB and RMB 10,000 Reporting Per

43、iod/during the Reporting Period/this Reporting Period Refers to From January 1,2021 to December 31,2021 End of Reporting Period/end of the current Reporting Period Refers to As of December 31,2021 Hengyi Petrochemical 2021 Annual Report 11 Section 2 Company Profile and Main Financial Indicators 2.1

44、Company profile Stock abbreviation Hengyi Petrochemical Stock code 000703 Abbreviation of the changed stock(if any)N/A Stock Exchange Shenzhen Stock Exchange Chinese name 恒逸石化股份有限公司 Chinese abbreviation 恒逸石化 Name in foreign language(if any)HENGYI PETROCHEMICAL CO.,LTD.Abbreviation of name(if any)HYP

45、C Legal representative Qiu Yibo Place of registration No.G,7/F,Haifu Building,No.16 West Beihai Avenue,Beihai City,Guangxi Zhuang Autonomous Region Postal code of the registered address 536000 Change history of the Companys registered address No changes Office address Building 3,Hengyi Nanan Mingzhu

46、,No.260 North Shixin Road,Xiaoshan District,Hangzhou City,Zhejiang Province Postal code of the office address 311215 Company website http:/ E-mail 2.2 Contact person and contact information Secretary of the Board Securities Representative Name Zheng Xingang Chen Shasha Contact address BOD Office,16/

47、F,Building 3,Nanan Mingzhu,No.260 North BOD Office,16/F,Building 3,Nanan Mingzhu,No.260 North Shixin Road,Hengyi Petrochemical 2021 Annual Report 12 Shixin Road,Xiaoshan District,Hangzhou City,Zhejiang Province Xiaoshan District,Hangzhou City,Zhejiang Province Tel.(0571)83871991(0571)83871991 Fax.(0

48、571)83871992(0571)83871992 E-mail 2.3 Information disclosure and place of preparation The website of the Stock Exchange where the Company discloses the Annual Report Shenzhen Stock Exchange:http:/ Name and website of the media through which the Company discloses the Annual Report China Securities Jo

49、urnal,Securities Times,Shanghai Securities News and Securities Daily;CNINFO:http:/ Place where the Annual Report is prepared BOD Office of Hengyi Petrochemical Co.,Ltd.2.4 Registration changes Organization code 9145050019822966X4 Changes in the Companys main business since listing(if any)No changes

50、Previous changes of controlling shareholders(if any)No changes 2.5 Other relevant information Accounting firm engaged by the Company Name of accounting firm Zhongxinghua Certified Public Accountants LLP Office address of accounting firm 20/F,Tower B,Lize SOHO,No.20 Lize Road,Fengtai District,Beijing

51、 Name of signing accountants Liu Hongyue,Wang Guohai Sponsor institution engaged by the Company to perform continuous supervision duties during Reporting Period Name of sponsor institution Office address of sponsor institution Name of sponsor representative Continuous supervision period CITIC Securi

52、ties Co.,Ltd.No.48 Liangmaqiao Road,Mao Zongxuan,January 2021-Hengyi Petrochemical 2021 Annual Report 13 Chaoyang District,Beijing Xu Rui December 2021 Financial consultants engaged by the Company to perform continuous supervision duties during Reporting Period Applicable Not applicable 2.6 Main acc

53、ounting data and financial indicators Does the Company need to retroactively adjust or restate the accounting data of previous years?Yes No Reason for retrospective adjustment or restatement Changes in accounting policies Hengyi Petrochemical 2021 Annual Report 14 2021 2020 Increase/decrease of this

54、 year over the previous year 2019 Before adjustment After adjustment After adjustment Before adjustment After adjustment Operating income(RMB)128,979,539,693.27 86,429,630,191.87 86,429,630,191.87 49.23%79,620,543,631.74 79,620,543,631.74 Net profit attributable to shareholders of listed companies(R

55、MB)3,408,043,143.47 3,071,998,839.75 3,071,998,839.75 10.94%3,201,348,425.33 3,190,185,517.79 Net profit after deducting non-recurring gains and losses attributable to shareholders of listed companies(RMB)2,758,543,282.50 2,479,101,027.63 2,479,101,027.63 11.27%2,725,438,479.51 2,725,438,479.51 Net

56、cash flow from operating activities(RMB)7,754,871,519.56 5,013,772,777.95 5,013,772,777.95 54.67%-112,081,728.16-91,125,777.91 Basic earnings per share(RMB/share)0.94 0.83 0.83 13.25%1.13 1.13 Diluted earnings per share(RMB/share)0.91 0.83 0.83 9.64%1.13 1.13 Weighted average ROE 13.56%12.56%12.56%1

57、.00%14.73%14.54%End of 2021 End of 2020 Increase/decrease at the end of this year over the end of the previous year End of 2019 Before adjustment After adjustment After adjustment Before adjustment After adjustment Total assets(RMB)105,548,909,472.93 92,260,268,155.54 92,685,505,184.24 13.88%85,230,

58、757,616.78 85,763,292,709.24 Net assets attributable to shareholders of listed companies(RMB)25,896,860,136.22 24,006,633,612.78 24,006,633,612.78 7.87%23,253,008,414.00 23,741,845,506.46 Hengyi Petrochemical 2021 Annual Report 15 Main reasons for changes in accounting policies On December 7,2018,th

59、e Ministry of Finance issued a Notice on the Accounting Standards for Business Enterprises No.21-Leases(2018 Revision)(CK2018 No.35)(hereinafter referred to as New Lease Standards).It stipulates that the new standards take effect from January 1,2019 for enterprises listed both at home and abroad,as

60、well as enterprises listed overseas and prepare financial statements according to IFRS or ASBE,and come into force from January 1,2021 for other enterprises abiding by ASBE.The net profits before and after deducting non-recurring gains and losses(whichever is less)of the Company in the previous thre

61、e fiscal years is negative,and the audit report of the previous year shows that the Companys going concern ability is uncertain.Yes No The lower of net profit before and after deducting non-recurring gains and losses is negative.Yes No 2.7 Differences between accounting data under the domestic and f

62、oreign accounting standards 2.7.1 Differences in the net profit and net assets in the financial statements which are presented concurrently in accordance with international accounting standards and the accounting standards of China Applicable Not applicable There are no differences in the net profit

63、 and net assets in the financial statements which are presented concurrently in accordance with international accounting standards and the accounting standards of China during the Reporting Period.2.7.2 Differences in the net profit and net assets in the financial statements which are presented conc

64、urrently in accordance with foreign accounting standards and the accounting standards of China Applicable Not applicable There are no differences in the net profit and net assets in the financial statements which are presented concurrently in accordance with foreign accounting standards and the acco

65、unting standards Hengyi Petrochemical 2021 Annual Report 16 of China during the Reporting Period.2.8 Quarterly main financial indicators Currency:RMB First quarter Second quarter Third quarter Fourth quarter Operating income 30,845,538,236.94 30,077,832,146.93 35,767,865,929.13 32,288,303,380.27 Net

66、 profit attributable to shareholders of listed companies 1,212,734,962.38 1,021,756,838.87 848,284,552.74 325,266,789.48 Net profit after deducting non-recurring gains and losses attributable to shareholders of listed companies 1,228,382,021.90 816,937,257.00 813,551,002.26-100,326,998.66 Net cash f

67、low from operating activities-471,195,959.85 2,231,237,943.42 587,998,410.73 5,406,831,125.26 Whether the aforesaid financial indicators or their sum are significantly different from the financial indicators related to the quarterly and semi-annual reports disclosed by the Company Yes No 2.9 Non-rec

68、urring gain and loss items and amounts Currency:RMB Item Amount in 2021 Amount in 2020 Amount in 2019 Remarks Profit or loss from disposal of non-current assets(including the write-off portion of asset impairment provision)-12,534,455.04-6,741,262.61-1,811,565.51 Tax refund or exemption approved ult

69、ra vires or without any formal approval 15,609,249.33 12,921,483.38 5,957,948.27 Government grants recorded into current profits and losses(except for those that are closely related to the normal business operation of the Company,in line with national policies,and are continuously enjoyed on a fixed

70、 quota or a quantitative basis)277,839,245.44 318,607,292.74 420,716,519.76 Current net profit or loss from subsidiaries formed by business merger under common control,from the period-beginning to the merger date 0.00 19,376,584.76 36,175,922.94 Profit or loss from contingencies irrelevant to normal

71、 business operations of the Company 0.00 0.00-2,173,136.66 The gains or losses arising from the fair value changes of held-for-trading financial assets and held-for-trading 480,727,659.11 487,752,983.95 301,297,013.33 Hengyi Petrochemical 2021 Annual Report 17 financial liabilities,as well as invest

72、ment gains received from the disposal of held-for-trading financial assets,held-for-trading financial liabilities and financial assets available for sale,except for effective hedging transactions that are related to the normal business operations of the Company Reversal of impairment provision for r

73、eceivables that are separately tested for impairment 309,000.00 0.00 0.00 Gains or losses from entrusted loans 49,567,383.65 41,586,615.56 29,136,336.48 Income from custodian fees obtained from entrusted operation 1,698,113.20 1,698,113.20 1,698,114.17 Other non-operating income and expense in addit

74、ion to the above 13,359,433.22-6,299,334.89-14,994,635.24 Other profit or loss items that meet the definition of non-recurring profit and loss 0.00 2,595,730.83-2,065,748.97 Less:Influenced amount of income tax 38,805,031.16 215,685,156.22 139,947,035.37 Influenced amount of the minority shareholder

75、s equity(after-tax)138,270,736.78 62,915,238.58 169,242,694.92 Total 649,499,860.97 592,897,812.12 464,747,038.28-Details of other profit or loss items that meet the definition of non-recurring profit and loss:Applicable Not applicable The Company does not have any other profit or loss items that me

76、et the definition of non-recurring profit and loss.Cases of defining the non-recurring profit and loss items as recurring profit and loss items,which are enumerated in the Explanatory Announcement No.1 on Information Disclosure of Companies Offering Securities to the Public-Non-recurring Profits and

77、 Losses Applicable Not applicable There was no case of defining any non-recurring profit and loss items as recurring profit and loss items,which are enumerated in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Securities to the Public-Non-recurring Profits and Los

78、ses.Hengyi Petrochemical 2021 Annual Report 18 Section 3 Management Discussion and Analysis 3.1 Main business of the Company and the industry in which the Company is engaged during the Reporting Period The Company shall comply with the disclosure requirements for petrochemical industry specified in

79、Guidelines No.3 for Self-Regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure 3.1.1 Overview Committed to developing into a leading domestic and world-class refining-petrochemical-chemical fiber industry group,Hengyi Petrochemical(stock code:000703)has made conti

80、nuous efforts to enhance its comprehensive competitiveness through resource sharing and industrial coordination.Under the guidance of the development strategy of refinery,polyester and polyamide industries,the Company,relying on the Brunei Project,has stepped up efforts in internationalization,broke

81、 the last kilometer barrier of the whole industry chain from oil refining to chemical fiber,and built an internally-highly-matched columnar-balanced integrated industry chain in the upstream,midstream and downstream.By creating a unique polyester+polyamide double-fiber driving mode among domestic co

82、unterparts,the Company has formed a petrochemical+multi-level and three-dimensional industrial layout with petrochemical industry chain as the core business,supply chain service business as the growth business,and differentiated fiber products and application of industrial intelligent technology as

83、the emerging business.3.1.1.1 Overview of petrochemical chemical fiber business 3.1.1.1.1 One of the worlds leading groups in the integration of“refining-petrochemical-chemical fiber”industry chain During the Reporting Period,the Companys unique industrial layout of refinery,polyester and polyamide

84、continued to improve.While organizing the domestic and overseas staff to join hands in scientific fight against the pandemic to avoid the Companys safe production and operation from Hengyi Petrochemical 2021 Annual Report 19 being significantly affected by the pandemic,the Company maintained stable

85、operation throughout the year and demonstrated strengths in expansion and quality improvement in polyester industry,potential tapping and transformation in PTA industry,and full production in refining and petrochemical industry.Besides,the Company uncovers the integrated,balanced and internationaliz

86、ed operation mode of industry chain.Currently,the Company has developed into one of the worlds leading enterprises integrating the industry chains of crude oil-PX-PTA-polyester and crude oil-benzene-CPL-polyamide.Upholding the strategic development policy of consolidating,highlighting and enhancing

87、the competitiveness of the main business,the Company has not only focused on the main business,but also continuously increased investment in technological innovation and industrial intelligent technologies,and enhanced the comprehensive competitive edge,thereby ranking in the forefront of the indust

88、ry for many years.During the Reporting Period,the Company has continuously extended its petrochemical industry chain,enriched product categories and further improved its product structure,which effectively consolidated the core competitiveness of the main business,strengthened the profitability of p

89、roducts and improved the ability to resist market risks.The Companys main products include:gasoline,diesel,jet fuel and other product oil;light petrochemical oil,liquefied petroleum gas(LPG),p-xylene(PX),benzene,purified terephthalic acid(PTA),caprolactam(CPL)and other petrochemical products;polyest

90、er bottle flakes and other packaging products,as well as polyester preoriented yarn(POY),polyester drawn yarn(FDY),polyester textured yarn(DTY),polyester staple fiber,polyester(PET)flakes and other polyester products.The products are widely used for meeting the rigid needs related to national econom

91、y and peoples livelihood,and meeting peoples yearning for a better life.Hengyi Petrochemical 2021 Annual Report 20 Note:Polyamide flakes are products currently operated by Hengyi Group,the controlling shareholder.As of the disclosure date of this report,the Companys designed crude oil production cap

92、acity was 8mtpa;the PTA production capacity of holding and shareholding companies was 19mtpa;the PIA production capacity was 300,000 t/a;the polymer production capacity of holding and shareholding companies was 10.465 million tons,among which the production capacity of polyester fiber was 7.765mtpa,

93、that of polyester bottle flakes(including RPET bottle flakes)was 2.7mtpa,and Figure 1 The petrochemical and chemical fiber industry chain in which the Company is engaged PetroleumProduct OilRefining-chemical integrationOlefinsOil refiningAromaticsGasolineDieselJet FuelPropyleneEthyleneParaxylene(PX)

94、BenzenePetrochemicalPolypropylenePolyethyleneEthylene Glycol(MEG)Purified terephthalic acid(PTA)Caprolactam(CPL)Polyester industry chainPolyethylene terephthalate(PET)Polyamide(PA)Bottle flakePolyamide chipPolyester fully drawn yarn(FDY)Polyamide industry chainChemical fiberPolyester partially orien

95、ted yarn(POY)Polyester staple fiberPolyester drawn textured yarn(DTY)Weaving fields(such as textiles,garments and home textiles)Business in ChinaBusiness in BruneiBusiness in futureDownstream products Hengyi Petrochemical 2021 Annual Report 21 that of caprolactam(CPL)was 400,000 t/a,ranking forefron

96、t in the industry.Note:1)Polyester fiber products include POY,FDY,DTY,staple fiber and flake products 2)This table lists the actual production capacity of the Company during the Reporting Period.During the Reporting Period,the Company continued to attach importance to investment in research and deve

97、lopment of new products,actively responded to the“carbon peaking and carbon neutrality”strategy,and adhered to the guidance of green manufacturing and circular economy.In the polyester sector,the Company continued to carry out product development and achievement transformation around the three major

98、 themes of environmental protection,function and bio-base.Internally,the Company optimized the sales system,actively grasped market demand,and fully tapped into and reasonably guided customer demands through the organic linkage of research and development,production and sales.Externally,the Company,

99、through cooperation with colleges and universities,built an industry-university-research school-enterprise ecology and conducted effective exploration in basic materials research support and cutting-edge key technologies.During the Reporting Period,the Company adopted a multi-path,multi-echelon and

100、multi-scenario research and development system.Through technical research,the Company quickly opened up the regenerated fine denier fiber market and was well received by customers.The antimony-free and environment-friendly Eticont series products were also recognized by more and more customers,and t

101、he sales volume continued to rise.The flame retardant fibers continued to maintain a strong market share among domestic flame retardant products.The market popularity of Table 1 Production Capacity of Main Products of the Company(10,000 t/a)Product Capacity Petrochemical products 265 Product oil 565

102、 PTA 1,900 PIA 30 Polyester fiber products 776.5 PET bottle flakes(including RPET)270 Caprolactam 40 Hengyi Petrochemical 2021 Annual Report 22 antibacterial and anti-virus products continued to rise,and antibacterial and anti-virus fibers will become a new profit growth point for differentiated pro

103、ducts.3.1.1.1.2 Products meeting the rigid needs related to the national economy and peoples livelihood The Companys terminal sales products mainly include product oil products such as gasoline,diesel and jet fuel,as well as polyester products such as polyester bottle flakes,polyester filament and p

104、olyester staple fiber,which are widely used to meet the rigid needs related to national economy and peoples livelihood.Among the products,product oil products such as gasoline,diesel and jet fuel provide energy for automobiles,ships,and aircraft and other vehicles and corresponding equipment.Polyest

105、er filament includes POY、FDY、DTY and other products,which are used in production of garment,home textile and decorative fabrics and linings,and can also be used for industrial purposes such as webbing,zippers,tents,automobile interiors and ear threads of masks.Among them,FDY products of the Company

106、can be used as medical and other materials to meet the increasing demand of downstream customers for raw materials of medical supplies;polyester staple fiber can be widely used in spinning,non-woven and filling fields,among which non-woven fabrics can be used in health areas such as disinfectant wip

107、es;PET bottle flakes are widely used in food packaging and medical materials production.The demand for bottle grade PET in beverage,dairy,edible oil,condiments and other livelihood industries keeps growing steadily,and the share in emerging application fields such as wine,daily chemicals,electronic

108、products and medical products is rising rapidly.Hengyi Petrochemical 2021 Annual Report 23 Table 2 Main Product Features and Application Fields ProductsPXProduct OilPTA PIA POYFDYDTYCPLPET staple fiberPET chipsPET bottle flakesApplication fieldsA type of hydrocarbon,colorless transparent liquid.It c

109、an be used in many fields.It is the main raw material for the production of PTA and is also used to make synthetic plastics,drugs,pesticides etc.Mainly used as fuel of various fuel-fired power equipment and heating supply.Used as fuel for automobiles,motorcycles,speedboats,helicopters,agricultural a

110、nd forestry aircraft,motor vehicles with diesel engine(including trains),vessels and diesel boilers.Mainly used for producing polyester products,and is widely used for all national economy aspects,such as clothing,decoration,electronics and construction.75%of PTA is used for polyester fiber,20%for b

111、ottle grade polyester and 5%for film polyester(mainly for civil use in the downstream).PIA is a white crystalline powder or acicular crystal used to produce alkyd resins,unsaturated polyester resins and other high polymers and plasticizers.It is also used to make film finishers,coatings,polyester fi

112、ber dyeing modifiers and medicines.Used for DTY and fiber products with special styles reprocessing production.It is widely used in clothing and industrial fields.Directly used for weaving and for production of garment and decorative fabrics.It is widely used in clothing and industrial fields,and al

113、so used as isolation material for protective suits and other protective products.It is directly used for weaving and is widely used in clothing and industrial fields,garment fabrics and lining materials.It is mainly used to produce polyamide fibers,engineering plastics and plastic films;widely used

114、in industrial and civil fields.Mainly used to produce yarns,nonwovens and filling materials.The non-woven fabric can be used as a raw material for the production of face masks and the downstream disinfectant wipes and disposable protective products.Widely used for indirect spinning.They can be used

115、to produce textile materials such as filaments and staple fibers,and also for strip casting to produce plastics and other products.Mainly used for food packaging(including coke bottle,beverage bottle,water bottle and oil bottle).Hengyi Petrochemical 2021 Annual Report 24 3.1.1.2 Overview of“petroche

116、mical+”business 3.1.1.2.1 Supply chain service business is conducive to improving product operation capability and enhancing the supporting value-added services With the continuous improvement of the integrated and balanced development of the Companys industry chains,the Company has strengthened the

117、 supply chain service management capacity,and innovated and promoted intelligent management and operation modes.Relying on refining and chemical fiber production base,the Company developed domestic and overseas regional markets and optimized product layout;strengthened the construction of digital pl

118、ants and actively explored flexible and personalized customization of production through big data means;adopted a variety of tools to improve product operation capability,explored the complementary advantages of raw material procurement and product sales,and gave full play to the strengths of indust

119、ry chain integration to create product price differences.The Company actively carried out comprehensive distribution services for raw materials and products,with Hengyi Micro Mall and marketing supply chain system as the core online,and logistics business as the support offline,to realize effective

120、integration of online and offline services.The Company continued to:optimize the functional applications(including price inquiry,quick order placing,market information,intelligent logistics management platform(HTTMS),financial services and other supporting services)of Hengyi Micro Mall;improve the e

121、fficiency of marketing closed-loop system,which sees a sustained explosive growth in transaction volume at present;innovatively build a unique omni-channel logistics control system and a tripartite logistics transportation platform.With the commissioning and operation of the Brunei Project,the Compa

122、ny has actively conducted supporting shipping business,accelerated the implementation of integrated management of supply chain services,formed a plant-product-warehouse-logistics-customer intelligent supply chain closed-loop system,and led the upgrading of intelligent supply chain services in the in

123、dustry.3.1.1.2.2 China Zheshang Banks equity investment provides a stable source of profits for the Company China Zheshang Bank BANK CO.,LTD,established in 2004,is one of the 12 national Hengyi Petrochemical 2021 Annual Report 25 joint-stock commercial banks approved by the China Banking and Insuran

124、ce Regulatory Commission.The Bank was listed on the Main Board of the Stock Exchange of Hong Kong on March 30,2016 and on Shanghai Stock Exchange on November 26,2019,becoming an A+H listed bank.At present,the Bank has developed into a high-quality commercial bank featuring solid foundation,excellent

125、 benefits,rapid growth and well-established risk control.With the completion of the A+H layout,China Zheshang Bank will accelerate its future growth.The Company will further optimize the strategic layout and continuously create value for shareholders through the growth premium of China Zheshang Bank

126、.According to the 2021 Annual Report issued by China Zheshang Bank,in 2021,the Bank achieved an operating income of RMB54.471 billion and net profit attributable to shareholders of RMB12.648 billion.As of the end of December 2021,the total assets of China Zheshang Bank were RMB2,290 billion,represen

127、ting an increase of 11.64%over the end of the previous year.Guided by the vision of to be a first-class commercial bank,and focusing on the“two most”general goal and the management principle of“scale up,adjust structure,control risks,create benefits”,China Zheshang Bank has created a new situation o

128、f five business segments(i.e.big retail,big company,big investment bank,big asset management and big cross-border business)advancing together to serve the real economy to a new stage.3.1.2 Industries involved Hengyi Petrochemical is engaged in the petrochemical and chemical fiber industry.Its raw ma

129、terials come from petroleum or corresponding chemicals cracked by petroleum.The downstream demand for terminal products are closely related to the basic necessities of ordinary people.Important factors affecting the industry mainly include crude oil price fluctuation,downstream demand,capacity suppl

130、y and matching of upstream and downstream industry chains.3.1.2.1 Refining and petrochemical business:Relying on the competitive advantage of China-Brunei location,the Company explored the refining and petrochemical market potential in Southeast Asia 3.1.2.1.1 The gap between global crude oil supply

131、 and demand was widened;crude oil prices fluctuated to the upside In 2021,global crude oil prices rose sharply.Oil demand was growing as the global economy Hengyi Petrochemical 2021 Annual Report 26 recovered,helped by economic stimulus policies worldwide.Delta and Omicron mutation virus once trigge

132、red market panic,and oil prices plunged in the short term,but overall crude oil prices still maintained a rising trend.At the macro policy level,western countries represented by the United States adopted quantitative easing policies,which,combined with the weak DOLLAR index,has played a significant

133、role in supporting the crude oil market.The temporary mismatch between supply and demand caused by the pandemic and loose liquidity pushed up global commodity prices,in particular,the sharp rise in energy prices such as coal and natural gas further stimulated the rise in crude oil prices.Geopolitica

134、l risk has also roiled oil prices since 2022,with conflicts between Russia and Ukraine,attacks on petroleum installations in Saudi Arabia and the Suez Canal blockade all exacerbating volatility in the oil market.In terms of supply,OPEC+began to gradually release production capacity from May 2021 as

135、global demand for crude oil increased.In July,OPEC+agreed to increase production by 400,000 barrels/day from August 2021 and by two million barrels/day by the end of the year,including 254,000 barrels/day per month from OPEC members.Despite the gradual increase in output by major producers,the actua

136、l crude oil production was below the promised increase,while the rate of production release lagged behind that of recovery in demand.According to the IEA,by the end of 2022,the gap between OPEC+projected production and actual deliveries could reach one billion barrels.In terms of demand,according to

137、 the IEA,global oil demand rose by 5.4 million barrels/day in 2021.Meanwhile,the IEA forecasts that global oil demand will increase by 3.2 million barrels/day in 2022.The recovery of supply from some OPEC producers was not as good as expected,and global energy demand was still strong,so the crude oi

138、l market remained in a volatile upward trend.3.1.2.1.2 The product oil market in Southeast Asia ushered in a super cycle,with a broad prospect for future growth Since 2022,as Indonesia,Malaysia,Singapore and other Southeast Asian countries eased their epidemic control measures and actively resumed w

139、ork and production,market demand has been growing rapidly.In addition,after the recovery of the supply chain in Southeast Asia,some overseas orders returned,and under the influence of the resonance of internal and external demand,the Hengyi Petrochemical 2021 Annual Report 27 demand for product oil

140、products in Southeast Asia has recovered strongly.According to Platts,in terms of gasoline products,Southeast Asia imported about 40.92 million tons in 2021.The main importing countries included Indonesia,Malaysia,Singapore,the Philippines,Myanmar and other places,while the main exporting countries

141、were Singapore and Thailand.In terms of diesel,36.96 million tons were imported in 2021.The main importing countries were Vietnam,Bangladesh,the Philippines,Sri Lanka,Myanmar,Indonesia and Malaysia.In terms of jet fuel,countries were almost self-sufficient and trade circulation was the main flow.The

142、 major importers in Southeast Asia were Malaysia and several other countries with smaller refineries,such as the Philippines and Sri Lanka.About 3.57 million tons were imported in 2021.In addition,with the implementation of the new IMO standard in 2020,the demand for low-sulfur fuel oil has risen.Si

143、ngapore is a major shipping base.As some marine diesel(MGO)has been required to replace marine fuel oil,the demand for diesel in Southeast Asia is expected to continue to increase.Compared with the surplus supply of domestic product oil products,Southeast Asias product oil market has a large gap.As

144、the only product oil net import market in the world,it has a product oil demand with great growth potential.Besides,Australia also needs to import product oil.In terms of supply,due to the early construction of some refineries in Southeast Asia,their outdated technology,poor management,heavy burden

145、of government subsidies and other reasons,more production capacity has been shut down in the previous three years in Asia.The planned new capacity in Asia has been concentrated in China and India,while Southeast Asia only saw a small increase in production in Brunei,Indonesia and Vietnam.Hengyi Petr

146、ochemical 2021 Annual Report 28 As the profit vane of refineries in Southeast Asia,from the perspective of the crack spread of product oil products since 2019,the crack spread of product oil products was at the lowest level in history during the pandemic in 2020.With the alleviation of the pandemic

147、in Southeast Asia in 2021,market demand gradually picked up,and the crack spread of product oil products continued to recover.Since 2022,under the influence of multiple factors,such as soaring crude oil prices,increased demand due to the mitigation of the pandemic in Southeast Asia and shrinking pro

148、duct oil supply,the crack spread of product oil products in Singapore has been on the rise.Figure 2 Crack Spread of Product oil Products in Southeast Asia in Recent Years January 2019January 2020January 2021January 2022GasolineJanuary 2019January 2020January 2021January 2022DieselJanuary 2019January

149、 2020January 2021January 2022Jet FuelData source:Platts(as of the disclosure date of the Report)Hengyi Petrochemical 2021 Annual Report 29 The Asian Development Bank(ADB)has released its latest economic forecast for Southeast Asia in 2022,predicting that the regions GDP will grow by 5.1%,and its eco

150、nomic recovery will continue to gain momentum.It is expected that Southeast Asia will continue to import product oil products every year in a market pattern where refinery supply capacity decreases rather than increases.As the impact of the pandemic gradually diminishes,the demand for product oil pr

151、oducts in Southeast Asia is expected to be supported,and the import volume of product oil products will continue to maintain the growth trend.At the same time,with the continued improvement of the crack spread,the new,market-driven refineries will see a rebound in profitability,and the Hengyi Petroc

152、hemical Brunei Refinery is expected to benefit from the continued widening of the spread of product oil.3.1.2.2 PTA business:Sufficient supply of raw materials and stable industrial order In 2021,the rise of crude oil prices drove up the prices of PX and PTA.PX prices rallied off the bottom througho

153、ut the year.In the second quarter,with the production of PTA plants by many companies,PX prices maintained growth.According to CCF data,as of December 31,2021,the domestic existing PTA capacity base was adjusted to 65.63 million tons,up 13.88%year on year.Under the influence of the policy of“control

154、ling total energy consumption and intensity”,plant maintenance and backward capacity close-down,the annual PTA output increased by 3.25 million tons,with a year-on-year growth of 6.5%,lower than the growth rate of new capacity,but still a record high.Due to many unexpected maintenance of PTA plants

155、in the United States and South Korea,the operating rate abroad was insufficient,and the domestic PTA export volume increased greatly.CCF data shows that in 2021,the total import volume of PTA in mainland China was 76,500 tons,and the total export volume in mainland China was 2,575,100 tons,with a ye

156、ar-on-year growth of 204.1%compared with the export volume in 2020,which was 846,700 tons.Due to the reduction of South Koreas PTA exports,it is expected that the domestic PTA exports will continue to increase in 2022.3.1.2.3 Polyester business:The terminal demand maintained healthy growth,and leadi

157、ng enterprises will benefit from reshaping of the pattern of chemical fiber industry chain 3.1.2.3.1 The consumer demand of residents increased,and the downstream demand for Hengyi Petrochemical 2021 Annual Report 30 textile and clothing was strong From the perspective of downstream demand,polyester

158、 fiber is mainly used in clothing,home textile and emerging application fields,which is closely related to residents consumption willingness.In 2021,the situation of pandemic prevention and control in China became stable,residents disposable income increased,and the consumption level continued to ri

159、se.The strategy of expanding domestic demand and various policies to promote consumption was effective,and consumer groups demands for textile and apparel and clothing quality,as well as their consumption capacity also increased.According to the National Bureau of Statistics,Chinas per capita dispos

160、able income has been on the rise since 2013.In 2021,the national per capita disposable income amounted to RMB35,128,up 9.1%year-on-year in nominal terms.Meanwhile,the per capita consumption expenditure of urban residents amounted to RMB30,307,up 12.2%.The per capita consumption expenditure of rural

161、residents was RMB15,916,up 16.1%.The improvement of residents consumption capacity has promoted the increase of terminal consumption expenditure in textile clothing and apparel industry.As the pandemic situation enters the stage of normal prevention and control,residents consumption habits and consu

162、mption patterns have changed to a certain extent,and online consumption has entered residents daily life.According to data from the Ministry of Commerce,in 2021,Chinas online retail sales reached RMB13,100 billion,of which the online retail sales of physical commodities amounted to RMB10,800 billion

163、,up 12.0%year on year,accounting for 24.5%of the total retail sales of consumer goods,and residents consumption continued to shift to online consumption.According to Euromonitor statistics,online sales of domestic shoes and clothing industry accounted for 35.4%,still maintaining a continuous growth

164、trend.In addition to traditional e-commerce,e-commerce live-streaming platform has become an important way of clothing sales.Online live-streaming consumption has emerged as a new force to provide strong support for terminal consumption,driving the high growth of terminal demand for textile and appa

165、rel.Online consumption has bucked the trend,effectively boosted consumption and unleashed market potential.Meanwhile,it also means that China has entered an important stage in which the upgrading of consumption structure has been accelerated,the iteration of consumption pattern has been sped up,Heng

166、yi Petrochemical 2021 Annual Report 31 and the role of consumption in driving the economy has become significantly stronger.3.1.2.3.2 Overseas demand for textile and clothing was strong,and exports maintained high growth In 2021,developed countries led by the United States implemented relatively loo

167、se monetary policies to stimulate economic recovery,improve clothing consumption willingness,and promote the significant growth of clothing consumption demand in developed countries.Meanwhile,the spread of the pandemic in Southeast Asia affected the production of local textile enterprises.Many facto

168、ries stopped production or reduced output,and some orders were transferred to China.According to the statistics from China National Textile and Apparel Council,in 2021,supported by the growth of overseas consumption demand,return of some orders and other factors,Chinas textile and apparel export rea

169、ched USD315.50 billion,up 8.4%year on year,and achieved more-than-expected growth from a relatively high trade base in 2020.The main driving force came from the substantial increase of exports of apparel,textile yarns and fabrics,among which apparel made a significant contribution.In 2021,apparel ex

170、ports totaled USD170.28 billion,up 24.0%year on year and 16.0%compared to pre-pandemic levels,the best record since 2015.Increase of external demand for textile and apparel also led to growth of upstream demand for polyester.3.1.2.3.3 In the polyester industry,market concentration was improved and c

171、ompetition order was further optimized.In 2021,polyester production capacity and output in China both achieved steady growth.According to CCF data,domestically,the polyester production capacity increased by 3.57 million tons in 2021,with a capacity growth rate of 5.76%.As of December 31,2021,the tot

172、al polyester production capacity was 65.56 million tons.From 2021 to the future,the new polyester capacity will continue to be centered on capacity expansion of leading enterprises.The backward polyester factories with outdated equipment lack the ability of technological innovation and will graduall

173、y withdraw from the industry competition.The liquidation of backward production capacity will be accelerated,the access threshold for the Companys industry chain will be further increased,the market concentration in the polyester industry will be further optimized,the competition order in the indust

174、ry will continue to improve,and the development environment will become healthier.As one Hengyi Petrochemical 2021 Annual Report 32 of the leading enterprises,the Company has accelerated the expansion of downstream chemical fiber business through a variety of ways,and will take the lead in enjoying

175、the profit improvement brought by the prosperity of the industry.3.1.2.3.4 The upgrading of domestic products contributed to the improvement of bottle flake prosperity According to CCF data,as of December 31,2021,the global bottle-grade PET production capacity was 32.27 million tons,among which,Chin

176、as bottle-grade PET production capacity accounted for 40%of the total global capacity,ranking first in the world.In the context of product upgrading,the demand for polyester bottle flakes was increasing.At the same time,driven by the demand for environmental protection,the reclaimed polyester bottle

177、 flake market was also growing rapidly.In 2021,the global bottle-grade PET apparent consumption was estimated at 32.08 million tons,with a year-on-year growth rate of more than 12%.The domestic demand was growing rapidly.The annual apparent consumption of bottle-grade PET was 7.05 million tons,up ab

178、out 24%year on year.On the downstream demand side,the traditional soft drink market was doing well.The pandemic also promoted the rapid development of bottle flakes in fresh e-commerce,household disinfection and other daily chemical fields,as well as new application areas such as environmentally fri

179、endly flooring and optical thin film,thus increasing the demand for bottle flakes.3.1.3 Position of each business segment of the Company The petrochemical and chemical fiber industry in which the Company is engaged belongs to the basic industry of the national economy and peoples livelihood.The fluc

180、tuation of the industry is mainly affected by factors such as upstream raw materials,product supply and downstream terminal market.With the continuous advancement of refining and petrochemical projects,the self-sufficiency rate of petrochemical products has gradually risen,and the global pricing pow

181、er has increased.During the Reporting Period,the market share was further improved.3.1.3.1 Refining and petrochemical business According to Platts(Platts Energy Information Platform),as of December 31,2021,the refining and petrochemical production capacity in Southeast Asia was about 270 million ton

182、s.In the past Hengyi Petrochemical 2021 Annual Report 33 three years,refinery capacity in Southeast Asia increased by 28.75 million tons;15.5 million tons of capacity were withdrawn;the capacity had a net increase of 13.25 million tons,among which the capacity of the Hengyi Brunei Project Phase I ac

183、counted for 60.38%of the net increase.In order to enhance international competitiveness,the first phase of the Hengyi Brunei Project introduced the worlds largest single series aromatics complex and the sixth flexicoking process unit in the world,which have lower production cost per unit of product,

184、are cleaner and more environmentally friendly,and boast obvious late-mover advantages.After the second phase of the Hengyi Brunei Refining and Petrochemical Project is put into operation,the production capacity will be further expanded and the Companys share in refining and petrochemical market will

185、 be further enhanced.3.1.3.2 PTA business According to CCF data,as of December 31,2021,the existing domestic PTA capacity base was adjusted to 65.63 million tons.As one of the leading enterprises in PTA industry,the Company has strategically arranged four PTA bases in Dalian of Liaoning Province,Nin

186、gbo of Zhejiang Province and Yangpu of Hainan Province along the coastline from north to south.The total PTA production capacity of holding and shareholding companies was about 19mtpa,ranking the first in the world.In addition,according to CCF data,as of December 31,2021,the national PIA production

187、capacity was about 550,000 tons,and the Companys PIA production capacity was 300,000 tons,accounting for about 54.55%of the national total.3.1.3.3 Polyester According to CCF data,most of the polyester production capacity is concentrated in the Asia-Pacific region,and China has been the worlds larges

188、t textile producer and exporter.As of December 31,2021,Chinas total polymer production capacity reached 65.56 million tons,with a year-on-year growth of 5.76%,of which the production capacity of polyester filament yarn was 37.17 million tons,that of polyester staple fiber was 8.55 million tons and t

189、hat of polyester bottle flakes was 11.11 million tons.The polymer production capacity of holding and shareholding companies was 10.465 million tons,among which the production capacity of polyester bottle flakes(including RPET)was 2.7 million tons,and that of polyester fiber consisted of 6.145 millio

190、n tons of filament yarn,880,000 tons of staple fiber and 740,000 tons of polyester flakes,ranking first in the Hengyi Petrochemical 2021 Annual Report 34 world.In 2021,the capacity concentration was further improved.The Company has continuously increased the proportion of differentiated fiber variet

191、ies and sped up the development of customized products to meet differentiated and personalized needs of the market,and its products have enjoyed a good reputation in the market for a long time.3.2 Main business model,process flow and performance drivers of the company during the Reporting Period The

192、 Company shall comply with the disclosure requirements for chemical industry specified in Guidelines No.3 for Self-Regulation of Listed Companies of Shenzhen Stock Exchange-Industry Information Disclosure 3.2.1 Business model 3.2.1.1 Procurement model The Company mainly purchases raw materials throu

193、gh direct negotiation with manufacturers or traders.It selects competitive suppliers to establish long-term and stable cooperative relations,on the basis of which it decides the transaction price according to market conditions.The raw materials required for production of the Company are mainly purch

194、ased from major petrochemical products and crude oil suppliers at home and abroad.When selecting raw material suppliers,the Company first considers the quality of their products and the stability of supply.While ensuring the above,the Company will also give priority to suppliers with competitive pri

195、ces to reduce production costs.The Company will sign annual supply contracts with major suppliers,regarding the supply in the relevant year of their products to the Company in accordance with international or domestic market prices at the time of actual supply as per the quantity agreed in the contr

196、acts.The main procurement process for auxiliary materials is basically the same as that for raw materials.3.2.1.2 Production model For polyester products,the Company arranges production mainly according to the production plan formulated in advance.In specific implementation,the annual production pla

197、n will be Hengyi Petrochemical 2021 Annual Report 35 subdivided into monthly production plan,and then the Production Department will make necessary adjustments to the monthly production plan according to the market feedback and change information provided by the Sales Department before finalizing th

198、e monthly production plan and arranging production.The Companys product oil and chemical products(PX,benzene,etc.)are mainly produced by Hengyi Brunei.Usually,it will adjust the process and parameters to control the output of specific products,such as product oil and chemical products,according to t

199、he market demand.The Companys PTA products are mainly produced by Zhejiang Yisheng.Usually,it will adjust the load level of production unit to control PTA output according to the market demand.3.2.1.3 Sales model The Companys product oil products are mainly sold to Brunei,other Southeast Asian count

200、ries and Australia.PTA and polyester products are mainly sold in the domestic market,covering more than 20 provinces and regions in China.Most products are sold directly to customers through the Companys Sales Department,and only a small number of products are sold through distributors.3.2.1.3.1 Sal

201、es model of product oil and chemical products(PX,benzene,etc.)The Companys product oil and chemical products are mainly produced by Hengyi Brunei.Among them,the main customers of chemical products are PTA manufacturers downstream of the Companys industry chain,and the settlement mode usually adopts

202、wire transfer and letter of credit,etc.Product oil is mainly sold to Brunei,other Southeast Asian countries and Australia.When selling to local enterprises in Brunei,the Company usually signs sales contracts directly and the settlement mode is letter of credit.The Companys sales to other Southeast A

203、sian countries and Australia are mainly through Singapore Commodity Exchange.Sales contracts are directly entered into with customers and the settlement mode is letter of credit.3.2.1.3.2 Sales model of PTA products The Companys PTA products are generally sold by direct sales,that is,the Company wil

204、l directly sign purchase and sale contracts with downstream polyester manufacturers or large traders,agreeing on the purchase quantity and price within a certain period.After receiving the payment for goods from customers,the products are delivered directly from the Companys warehouse.The Hengyi Pet

205、rochemical 2021 Annual Report 36 settlement mode for sales of PTA products is“payment before delivery”,or“collect on delivery”,usually by wire transfer,acceptance draft or letter of credit.3.2.1.3.3 Sales model of polyester fiber products The main customers of the Companys polyester fiber products a

206、re textile enterprises,including elastomer enterprises,garment fabric manufacturers,bag fabric manufacturers,home decoration fabric manufacturers,etc.These customers are mainly concentrated in the areas of Jiangsu and Zhejiang as well as Shanghai.The Company generally adopts direct sales,and directl

207、y concludes sales contracts with customers.The settlement mode is usually“payment before delivery”,or“collect on delivery”.3.2.1.4 Business model of supply chain service business The Companys supply chain service business mainly includes trade business and supporting logistics related services.3.2.1

208、.4.1 Trade business Petrochemical industry is a cyclical industry.On the one hand,the supply side of raw materials is susceptible to factors such as upstream suppliers capacity,operation stability of the plant and start-up time of the new plant.On the demand side,especially in the downstream polyest

209、er segment,sales have typical seasonal characteristics.Meanwhile,chemical raw materials and finished products are very dependent on the stability of port facilities and international logistics transportation.On the other hand,the prices of products in the petrochemical industry chain are affected by

210、 the price of terminal crude oil,showing wide fluctuations.Therefore,in order to ensure production and operation,strengthen supply chain stability and reduce the risk of price fluctuation,petrochemical enterprises need to smooth supply and demand and hedge risks through trade business in procurement

211、 and sales.Under the impact of COVID-19,capacity release in the industry is uncertain.The quarantine and lockdown measures in various regions have led to the instability of logistics supply.In addition,the sharp shock of oil prices has increased the uncertainty of supply and demand in the industry,w

212、hich further drives the urgent need of enterprises to hedge supply risks through trade management.In trade business,the Company always adheres to the principle of“serving the main business”.The trading varieties focus on the primary business and core products,mainly PTA and MEG.Among Hengyi Petroche

213、mical 2021 Annual Report 37 them,PTA belongs to the finished products of the Companys PTA business segment,and PTA and MEG are also important raw materials of polyester segment,which shows that the Company uses its trade business to stabilize supply chain and hedge against price volatility.3.2.1.4.2

214、 Supporting logistics related services The Companys logistics sector provides transportation services of raw materials and products for upstream and downstream industries of Hengyi Petrochemical.Its business covers three aspects of raw materials transportation,product transportation and foreign trad

215、e transportation.It is deeply rooted in China and gradually going abroad,and the business scope involves international shipping and land transportation.The main business model is as follows:（1）Transportation of raw materials mainly serves the production plants within the Company system,through the l

216、and transport of self-own vehicles and third-party land transport,inland river shipping,etc.（2）Transportation of products mainly used for the Company to sell the Companys business orders and organize the third-party logistics company to transport the products.The transportation business settlement i

217、s carried out by Hengyi Logistics.（3）Foreign trade transportation mainly through Hengyi Logistics,under collaboration with the sales company of the Company and cooperation with third-party shipping companies or freight forwarding companies,to carry out container transportation business by means of b

218、idding.Transportation modes include sea-rail combined transport,sea-river combined transport,direct transport,etc.（4）International transportation mainly serves Brunei PMB Petrochemical Project,most of which are operated by Hengyi Logistics and its overseas subsidiaries.The imported crude oil and coa

219、l,exported product oil and benzene and other products of the PMB Project are transported by spot chartering with the fleet capacity of a third-party ship-owner in the market.For the transportation of chemical PX,due to the relatively stable ports and batch volume of upstream and downstream routes,MR

220、 chemical fleet will be rented for transportation during the self-construction period.For some LPG gas products,a mixture of the above two modes is adopted to achieve the goal of safe transportation.Hengyi Petrochemical 2021 Annual Report 38 3.2.2 Process flow charts of main products 3.2.2.1 Product

221、ion flow of product oil/chemical products The production flow of the Companys product oil/chemical products includes atmospheric distillation,vacuum distillation,hydrocracking,flexicoking,catalytic cracking and alkylation,etc.Atmospheric Distillation UnitVacuum Distillation UnitLight ends recovery K

222、erosene HydrotreatingDiesel HydrotreatingOverhead gas KeroseneDiesel Flexicoking HydrocrackingAtmospheric 4th line Product purificationCoker liquefied gasSulfur-bearing liquefied gasPre-hydrogenation NaphthaReforming PSAGas from low pressure separatorHydrogen Reforming HydrogenRefined naphthaCoker g

223、as oilHeavy naphthaGas fractionationLight Naphtha Isomerization Aromatics complexCracking liquefied gas Liquefied refinery gas Reforming liquefied gas Light naphthaLight naphthaReformateSulfur Recovery ComplexSulfur(solid&liquid)Flexible gas(fuel gas)PropyleneLiquefied Petroleum GasLPGIso-butane Gas

224、oline component C7+non-aromaticGasoline component isomerized oilGasoline component isopentane gasolineRaffinate oil Aviation keroseneBenzeneMethylbenzene PXHeavy aromaticsDiesel Coker gasoline and diesel Vacuum gas oil Vacuum residueSour water Sour gasNaphtha 3.2.2.2 PTA preparation process The spec

225、ific PTA process flow can be divided into oxidation unit and refining unit:3.2.2.2.1 Oxidation unit The specific flow chart of oxidation unit is as follows:Hengyi Petrochemical 2021 Annual Report 39 Air compressorSteam turbineExpander Feed mixture Oxidation reactor Level-4 condensationHigh pressure

226、absorberPost oxidation reactorCondenser Tail gas drying Solvent recovery and dehydrationPrimary crystallizerSecond crystallizerVacuum filterTA binCTA dryerCondenser Residue evaporatorRecovery and hydrolysis of methyl acetateCatalyst recoveryMother liquorAcetic acid storage By-product steam Supplemen

227、ting acetic acidSteam PXCo，MnAcetic acid storage PTA pressure filter mother liquorWastewater treatment 3.2.2.2.2 Refining unit The flow chart of refining unit is as follows:Hengyi Petrochemical 2021 Annual Report 40 CTA binSlurry preparation Booster pump Solvent tankSundyne pumpPreheater Hydrogenati

228、on reactorHydrogen compressionLevel-5 crystallization Pressure filteringRe-beating Vacuum filterPTA drying PTA batch bin Mother liquor flashingPTA bin H2To mother-liquor solid recoveryPackaging Desalted waterFlash-off steamRecycling solventDesalted water 3.2.2.3 Polyester esterification polycondensa

229、tion process In the process of polyester esterification,the raw material PTA,ethylene glycol and catalyst solution are continuously sent into the slurry preparation tank according to the specified proportion.After they enter the esterification reactor,the esterification rate can reach about 95%-96%b

230、y controlling the reaction temperature at an appropriate level.By means of gear pump discharging and pressurization,the polyester melt produced from esterified materials after prepolycondensation and final polycondensation is filtered by melt filter,and is distributed through a specially designed me

231、lt distribution system.Part of it is sent to the spinning device for melt direct spinning,and the other part is sent to the flake production system for ribbon casting and pelletizing.The specific flow chart of polyester esterification,polycondensation and other reactions is as follows:Hengyi Petroch

232、emical 2021 Annual Report 41 PTA store Feed EG tankSlurry allocation tankFirst esterification reactorSecond esterification reactorPrepolycondensation reactorPrepolymer filterFinal polycondensation reactorMelt filtering and conveying Directly to spinning workshopRibbon casting Dust Catalyst Ethylene

233、glycol exhaust gasEthylene glycol exhaust gasCondenser Process fractionating columnCondenser EG jet pumpCondenser Ethylene glycol liquid seal troughLiquid ring pumpUnderwater pelletizingChip drying Packaging PET caput-heels and waste chipsEGExhaust gas is incinerated in a heat medium furnaceOligomer

234、 residueRecycle EG to slurry allocation tankCondensate collecting tankStripping tower Sewage treatment stationResidue Residue Esterification wastewaterExhaust gas is burned in a thermal furnaceHeavy component Ethylene glycol/acetaldehyde exhaust gas 3.2.2.4 Production flow of POY/FDY The production

235、process of POY and that of FDY are basically the same.The polyester melt is Hengyi Petrochemical 2021 Annual Report 42 connected and transported to the device from the outlet of the melt distribution valve of the polyester device,and then is divided into two systems through the melt three-way valve.

236、On the way,it is pressurized by the melt booster pump,and then sent to the melt distribution valve after cooling-down by the melt cooler.The polyester melt from the melt distribution system enters the spinning chamber insulated by steam phase heat medium at a certain temperature and is delivered to

237、the spinning assembly after metering by a metering pump.The melt pipe is equipped with a freezing valve to ensure that the spinning position can be independently started and stopped.After the melt is filtered and pressed by the filter layer again in the spinning assembly,it is ejected from the spinn

238、eret in a thin stream and solidified into filaments under the condition of constant temperature and humidity.The filament is oiled by the tanker,and then through the network nozzles,it is rolled into a filament tube in the winding machine.POY and FDY products were prepared under high speed winding r

239、anging from 2,500m/min to 5,100m/min.Polyester meltBooster pump Melt coolerMelt distribution valveStatic mixerMetering pumpSpinning assemblyOil+water Blending OilCooling(ring blowing,side blowing)Oiling deviceSpinning channelNetwork nozzleDraw-off godetHeating rollerPOY winding FDY windingPackaging

240、check Dyeing Delivery Oil dripping fluidOil exhaust gas Oil exhaust gas 3.2.2.5 Production flow of DTY The POY filament on the filament tube rack is wound into a DTY filament tube and becomes a finished product after it passes through yarn guide,feeding roller,texturing heater,cooling,drafting,false

241、 twister,feeding roller in the middle,network,heater,delivery roller and oil roller.POY filament Original filament rackUpper roller feedingUpper heater(texturing heater)Cooling Drafting and false twisting Oil exhaust gas Middle roller Network Lower heater(setting heater)Lower rollerOiling Winding an

242、d forming Grading and packaging DTY oilDelivery Waste yarn Hengyi Petrochemical 2021 Annual Report 43 3.2.2.6 Production flow of staple fiber Polyester staple fiber is a kind of fiber that is transported to the spinning machine through melt,spun into shape,cut into fibers of different lengths after

243、drafting,crimping and heat setting,and then packed into individual packages.The main process includes melt conveying,spinning,cooling,winding,tube falling,bundling,drafting,tension heat setting,folding,crimping,cutting and packaging.Polyester meltBooster pump Melt coolerStatic mixerMetering pumpSpin

244、ning assemblyAir cooling Spinning oilSpinning oilDraggerFeeding machine Relaxation heat setting Reciprocating enginebundlingYarn guideImpregnating tankFirst drafterDraft bath Second drafter Steam heaterFolding machine Third drafterSpray oilingTension heat settingTension machine Steam preheaterCrimpi

245、ng machineFiber-spreading machineYarn guideDrag tension machineCutting off Packaging Polyester staple fiber 3.2.2.7 Production flow of bottle flakes The production process of bottle flakes,i.e.bottle grade flakes,is composed of two parts:melt polymerization+solid phase polymerization.The main proces

246、s of melt polymerization consists of pulping,esterification,polycondensation,and dicing,and is basically the same as that of fiber polymerization.The difference lies in that IPA,stabilizer and toner are added in the formula of bottle flakes.The main process of solid phase polymerization is crystalli

247、zation,preheating,reaction,and cooling.Hengyi Petrochemical 2021 Annual Report 44 Product packagingChip cooling Solid phase polycondensation reactionPreheating Crystallization Basic chip conveying Demineralized waterCropping Drying Water filtration Polycondensation reactionEsterification reaction Sl

248、urry preparation Auxiliary solutionVacuum system EG distillationNitrogen IPAPTA 3.2.3 Main performance drivers 3.2.3.1 The Company adheres to scientific research and innovation to meet the high-end and differentiated needs of the market The Company has always been committed to improving the ability

249、of independent innovation,focusing on the R&D and application of high-end products and green products in the field of polyester fiber.Relying on the university-enterprise platform,the Company has established a product portfolio featuring diversification,serialization,quality and uniqueness and plays

250、 a leading role in China in terms of technology.The proportion of high-end products of the Company has continued to increase.The Companys independently developed antimony-free green polyester product,Eticont,is widely used in infant clothing,facial masks and other fields,and the added value is much

251、higher than that of conventional products.The diversity of flame retardant products is gradually increasing,and the final test of recycled flame retardant polyester has successfully completed.These products have been accepted by more and more customers.Meanwhile,the industrialization of antibacteria

252、l and antiviral fibers has also been completed rapidly.As their excellent antibacterial and antiviral properties have been unanimously recognized by customers,they will become a new profit growth point among the differentiated products.3.2.3.2 With unique advantage of integrated supply chain managem

253、ent,the Company can independently control the product cost,which enhances the market competitiveness of our products The Company keeps strengthening our supply chain management capability,and innovating and promoting our intelligent management and operation models.The Company uses its own tankers fo

254、r Hengyi Petrochemical 2021 Annual Report 45 transportation to ensure the supply of raw materials,improve transportation efficiency and reduce logistics costs.The Company maintains a leading position in the industry in the proportion of independent transportation.The supply chain business has effect

255、ively improved the Companys sensitivity to product costs and selling prices,and enhanced our cost control ability and profitability.With the commissioning and operation of the Brunei project,the Company has stepped in the shipping sector to strengthen the integrated management of overseas supply cha

256、in service.The Company has gradually built its own fleet to increase our shipping strength,effectively address the inadequate shipping capacity and the increasing shipping costs,and ensure timely delivery of shipments.3.2.3.3 With major strategic projects being put into operation one after another,t

257、he Company has improved the effect of economies of scale In 2021,Yisheng New Materials 3-mtpa PTA Production Line 1,the plants of Haining Hengyi New Materials Co.,Ltd.s 1-mtpa Differentiated Environmental Functional Fiber Project,and Fujian Yijin Chemical Fiber Co.,Ltd.s 566,000 t/a new functional f

258、iber project”were put into operation in succession.In addition,Yisheng New Materials 3-mtpa PTA Production Line 2 was officially put into operation in January 2022.The scale of the Companys PTA and polyester fiber business has continued to grow,and the Companys production capacity risen to a new lev

259、el,consolidating our leading position in the industry.The release of new production capacity has continued to provide incremental contributions to the Company and drive the Companys performance growth.3.2.3.4 The Company has adjusted the product structure to cater to market needs,maintaining a sound

260、 gross margin The Companys end products mainly include product oil,polyester bottle flakes and polyester fibers,covering a wide range of varieties.In 2021,the domestic and international economies recovered gradually,and consumer demand for textiles and clothing,home textiles,packaging,etc.kept growi

261、ng.Combined with the contraction of overseas supply chains,international orders returned to China,and the downstream demand for the Companys products rebounded steadily.The Company seized the growth opportunity of the strong market demand for bottle flakes to further Hengyi Petrochemical 2021 Annual

262、 Report 46 expand the market share and maximize profits.As an industry leader,the Company has an annual production capacity of 2.7 million tons of PET bottle flakes(including RPET).The first phase of the Hengyi Brunei Project stands out with its low cost of new plants and flexible adjustment of prod

263、uct mix.Due to the best performance of diesel in terms of Singapore product oil crack spread,the Company continued to convert jet fuel into diesel in 2021,reduce the output of jet fuel,and ensure full-load production,securing the optimal profitability of the project.During the Reporting Period,with

264、the continuous recovery of the crack spread of product oil in Singapore,the gross margin of each product was maintained at a high level.In addition,in order to improve profitability,the Company actively and flexibly converted some PTA capacity to PIA capacity,which effectively improved the capacity

265、utilization and added value of products.Procurement mode of main raw materials Currency:RMB Main raw materials Procurement model Proportion of purchase amount in total Purchases Whether the settlement method has changed significantly Average price in the first half of the year Average price in the s

266、econd half of the year Crude oil Purchasing inquiry 24.05%No 3,294.04 3,932.96 PX Purchasing inquiry 13.65%No 5,184.90 5,898.87 MEG Purchasing inquiry 8.18%No 4,370.89 4,693.46 Reasons for major changes in raw material prices from the previous Reporting Period During the Reporting Period,there were

267、major changes in the Companys raw material prices compared with the previous Reporting Period,the main reasons were that the global economy gradually recovered against the backdrop of quantitative easing policy while the release of crude oil production capacity lagged behind the rebound of demand an

268、d the recovery of crude oil supply was less than expected.Therefore,prices of energy resources such as coal and natural gas have also risen sharply,boosting the upward trend of crude oil price.Under the combined influence of various factors,the crude oil price generally rose all the way in 2021.Acco

269、rding to CCF data,in 2021,the Hengyi Petrochemical 2021 Annual Report 47 growth rate of the price of both WTI crude oil and Brent crude oil are 57.94%and 52.24%,respectively.At the same time,the rise in crude oil price also lifted the prices of downstream products in the industrial chain such as PX.

270、The purchase price of energy accounts for more than 30%of the total production cost Applicable Not applicable Reasons for significant changes in major energy types Applicable Not applicable Main production technologies Main products Stage of production technology Core technical personnel Patented te

271、chnology Advantage in product R&D Gasoline Mass production Multiple persons Introduction and innovation Advanced equipment and technology,high production capacity,low costs of raw materials and transportation,and high level of eco-friendliness Diesel Mass production Multiple persons Introduction and

272、 innovation Advanced equipment and technology,high production capacity,low costs of raw materials and transportation,and high level of eco-friendliness Kerosene Mass production Multiple persons Introduction and innovation Advanced equipment and technology,high production capacity,low costs of raw ma

273、terials and transportation,and high level of eco-friendliness Paraxylene Mass production Multiple persons Introduction and innovation Advanced equipment and technology,high production capacity,low costs of raw materials and transportation,high product purity,and long operating cycle of the plant Ben

274、zene Mass production Multiple persons Introduction and innovation Advanced equipment and technology,high production capacity,low costs of raw materials and transportation,high product purity,and long operating cycle of the plant Purified terephthalic Mass production Multiple persons Introduction and

275、 High production capacity,low investment,low energy consumption,convenient transportation and high level of Hengyi Petrochemical 2021 Annual Report 48 Main products Stage of production technology Core technical personnel Patented technology Advantage in product R&D acid innovation eco-friendliness P

276、olyester Mass production Multiple persons Introduction and innovation Short process,high production capacity,low consumption of raw materials and public works,etc.Polyester Mass production Multiple persons Introduction and innovation The third and fourth monomers are added into the polymerization re

277、action system,and a special equipment structure is adopted.Through esterification,pre-polycondensation,and final polycondensation,low-temperature dyeable cationic polyester is prepared,lowering the cost of subsequent dyeing and reducing environmental pollution.Additives such as compound stabilizers

278、are used to increase the melting point and improve the heat resistance of melts,while increasing the whiteness and improving the hue and heat resistance of the products.Polyester Mass production Multiple persons Introduction and innovation No dulling agent is added in the polymerization process to p

279、roduce super bright polyester products to meet the needs of different customers with low production costs.Polyester Mass production Multiple persons Introduction and innovation By adding dulling agents in the polymerization process to produce full dull polyester products,the problem of low filter li

280、fe due to the increase of dulling agents is solved and energy consumption is reduced.Polyester Wide range of applications Multiple persons Introduction and innovation By optimizing the design of the reactor structure and adding titanium-based catalysts instead of antimony-based catalysts,the catalys

281、t is uniformly dispersed in the material,and an environmentally friendly antimony-free polyester product is Hengyi Petrochemical 2021 Annual Report 49 Main products Stage of production technology Core technical personnel Patented technology Advantage in product R&D produced,realizing a high level of

282、 eco-friendliness.Polyester Mass production Multiple persons Introduction and innovation The master-batch preparation process has been improved,the types and proportions of silver-based antibacterial agent,PBT powder mixture and dispersant have been studied,and the optimal proportions of the three h

283、ave been determined.The antibacterial master-batch has been prepared by melt blending and extrusion with outstanding features.Polyester Wide range of applications Multiple persons Introduction and innovation Maximum output,highest conversion rate and lowest energy consumption are realized Polyester

284、Wide range of applications Multiple persons Introduction and innovation By tapping the potential of equipment,the effect of increasing production and efficiency has been achieved without increasing investment Polyester Wide range of applications Multiple persons Introduction and innovation Through r

285、ecycling,energy waste is reduced and energy utilization rate is improved;by continuously introducing energy-saving technologies,production costs have been reduced Polyester Wide range of applications Multiple persons Introduction and innovation It extends the filter service life,reduces labor waste,

286、and saves packaging costs,bringing considerable economic benefits to the Company Polyester Wide range of applications Multiple persons Introduction and innovation Through modification during the polymerization reaction,the fluidity and ductility of the polyester melt are improved.With the same polym

287、erization residence time,the intrinsic viscosity of the product is higher than that of the conventional polyester,and the processing performance of the melt is also improved.A Hengyi Petrochemical 2021 Annual Report 50 Main products Stage of production technology Core technical personnel Patented te

288、chnology Advantage in product R&D utility model patent has been granted for this technology.The patent number is ZL 201120209233.4 Polymerization Wide range of applications Multiple persons Introduction and innovation Through independent R&D,the Company has successfully developed and produced titani

289、um dioxide for nylon,and completed independent production and supply of auxiliary materials to replace imports.Polymerization Wide range of applications Multiple persons Introduction and innovation Through independent R&D,the Company has successfully developed and produced titanium dioxide for nylon

290、,and completed independent production and supply of auxiliary materials to replace imports.Spinning Wide range of applications Multiple persons Introduction and innovation Using advanced AI technology,the Company can automatically monitor the spinning process,and detect and deal with abnormalities i

291、n a timely manner,thereby improving the product quality and production efficiency and reducing the cost Spinning Wide range of applications Multiple persons Introduction and innovation Using advanced AI technology,the Company can automatically inspect the appearance defects of filament rolls,thereby

292、 improving the production efficiency and reducing the cost Spinning Wide range of applications Multiple persons Introduction and innovation Using advanced automation technology,the Company realizes the automation of the production process,greatly reducing manual operations,improving the production e

293、fficiency and reducing the cost Spinning Mass production Multiple persons Introduction and Using advanced technology,the Company shortens the process flow and increases the production capacity and degree of Hengyi Petrochemical 2021 Annual Report 51 Main products Stage of production technology Core

294、technical personnel Patented technology Advantage in product R&D innovation differentiation,maintaining stable product quality with low utility costs Spinning Mass production Multiple persons Introduction and innovation Using the melt direct spinning POYDTY process route,the melt is ejected from the

295、 independently designed straight-line-shaped spinneret hole,and then cooled,oiled,rolled and spun into flat special-shaped POY yarns.POY yarns are then textured into flat DTY polyester filaments,which feature lower bulk density,lighter weight and softer fabric feel.Spinning Mass production Multiple

296、persons Introduction and innovation Using the melt direct spinning POYDTY process route,the melt is ejected from the independently designed cross-shaped spinneret hole,and then cooled,oiled,rolled and spun into cross-shaped POY yarns.POY yarns are then textured into cross DTY polyester filaments,whi

297、ch feature lower bulk density,lighter weight,better air permeability and softer fabric feel.Spinning Mass production Multiple persons Introduction and innovation Using the melt direct spinning PDY process route,the melt is ejected from the independently designed tree-or star-shaped and other special

298、-shaped spinneret holes,and then cooled,oiled,rolled and spun into tree-or star-shaped and other special-shaped FDY yarns.This type of polyester filament features lower bulk density,lighter weight,special luster,and softer fabric feel.Spinning Mass production Multiple persons Introduction and innova

299、tion The functional self-heating master-batch is added to produce the functional hollow polyester fiber.With double heat retaining effects,it can be used as the core layer of the heat Hengyi Petrochemical 2021 Annual Report 52 Main products Stage of production technology Core technical personnel Pat

300、ented technology Advantage in product R&D retaining and comfortable composite fiber.A utility model patent has been granted for this technology.The patent number is ZL201410481816.0 Spinning Wide range of applications Multiple persons Introduction and innovation With the use of advanced equipment an

301、d process technology,short process,high degree of automation,and low manufacturing cost are achieved.Spinning Wide range of applications Multiple persons Introduction and innovation Through technical improvement,the manual operation cycle is extended,the product quality stability is improved,and the

302、 resource consumption and cost are reduced Spinning Wide range of applications Multiple persons Introduction and innovation By installing in-line addition equipment,dynamic and static mixing equipment,oil nozzles,winders,etc.on the melt direct spinning line,the existing equipment has been transforme

303、d and upgraded,enabling the polyester melt direct spinning line to produce differentiated and high-end products.It solves the challenge of using the large-capacity polyester plant to produce functional differentiated fibers of multiple varieties in small batches.Functional modified fibers are produc

304、ed,including colored,flame retardant,antibacterial and full dull fibers Spinning Wide range of applications Multiple persons Introduction and innovation The Companys own technology is applied to the production of flame retardant polyester.Single-component spinning or composite spinning technology is

305、 used to produce single-component or two-component sheath-core composite flame-retardant and anti-dripping POY-DTY yarns Spinning Wide range of Multiple persons Introduction and Through independent R&D,the Company produces polyester and polyamide,SPH,sea-island,cationic dyed polyester and Hengyi Pet

306、rochemical 2021 Annual Report 53 Main products Stage of production technology Core technical personnel Patented technology Advantage in product R&D applications innovation other composite filaments to meet the high-end market demand Spinning Wide range of applications Multiple persons Introduction a

307、nd innovation Through independent R&D,the Company produces differentiated and functional products such as HOY and medium-strength yarns for segment markets,meeting the needs of specific users Spinning Wide range of applications Multiple persons Introduction and innovation In the spinning process,the

308、 non-contact heating method is adopted to reduce the friction and heating of the filaments during processing to avoid the production of broken filaments.Low-temperature stretching deformation-high-temperature setting are adopted and appropriate tangle jets are used to reasonably control the tangle a

309、ir pressure bundling performance and other production processes to produce ideal fully-drawn yarns(FDY)similar to the products of parallel drafting machines.A utility model patent has been granted for this technology.The patent number is ZL200810059725.2 Spinning Wide range of applications Multiple

310、persons Independent R&D Through independent R&D,the Company produces oils suitable for the spinning process to improve the processing performance of the product,so that the weaving process can proceed smoothly and the product quality is excellent.Spinning Wide range of applications Multiple persons

311、Introduction and innovation By using the programmable controller(PLC),the composite yarn is stretched in multiple stages,and the order of the stretching ratio of each stage can be changed as needed within the range,so that the composite yarn has different structural densities,resulting in the differ

312、ence in color absorption and dyeing rates,and realizing multiple colors after dyeing.It has Hengyi Petrochemical 2021 Annual Report 54 Main products Stage of production technology Core technical personnel Patented technology Advantage in product R&D brought significant economic and social benefits.A

313、 utility model patent has been granted for this technology.The patent number is ZL200710070581.6 Spinning Wide range of applications Multiple persons Introduction and innovation The graphene master-batch and polyester flakes are blended and spun into yarns.A spinneret with a 4C aperture is used to p

314、repare hollow graphene polyester fiber POY,and the fluffy curl of the polyester fiber is further improved in the subsequent texturing process.This gives the polyester fiber the features of heat retaining and light weight in addition to the functionality of graphene,expanding its application prospect

315、 of graphene in the field of textiles.Spinning Wide range of applications Multiple persons Introduction and innovation The antimony-free polyester melt is produced by adding a titanium-based catalyst to polyester to instead of antimony-based catalysis,and then antimony-free staple fibers and filamen

316、ts are produced through a spinning process,featuring high environment-friendliness.Spinning Wide range of applications Multiple persons Introduction and innovation By spinning and winding a bunch of POY and a bunch of FDY,a new type of polyester/polyester composite yarn is made,and it can be used fo

317、r weaving high-grade artificial silk clothing fabrics and home textile fabrics,which has the advantages of rich hand feel,anti-wrinkle property and good drapability.Spinning Wide range of applications Multiple persons Introduction and innovation Through independent R&D,the spinning oil for FDY has b

318、een successfully prepared to replace imported oils.Spinning Wide range Multiple Introduction The antimony-free polyester melt is produced by adding a Hengyi Petrochemical 2021 Annual Report 55 Main products Stage of production technology Core technical personnel Patented technology Advantage in prod

319、uct R&D of applications persons and innovation titanium-based catalyst to polyester to instead of antimony-based catalysis,and then antimony-free staple fibers and filaments are produced through a spinning process,featuring high environment-friendliness.Spinning Wide range of applications Multiple p

320、ersons Introduction and innovation By spinning and winding a bunch of POY and a bunch of FDY,a new type of polyester/polyester composite yarn is made,and it can be used for weaving high-grade artificial silk clothing fabrics and home textile fabrics,which has the advantages of rich hand feel,anti-wr

321、inkle property and good drapability.Spinning Wide range of applications Multiple persons Introduction and innovation Through independent R&D,the spinning oil for FDY has been successfully prepared to replace imported oils.Texturing Mass production Multiple persons Introduction and innovation By cont

322、rolling the temperature of false twist deformation,the linen type is achieved,which not only has the style of natural linen fibers,but also has the stiffness of artificial linen fibers.Texturing Mass production Multiple persons Introduction and innovation The airflow through the tangle jet is closed

323、 intermittently,and a variety of polyester POY yarns of different colors are composited through false twist deformation to produce a fancy composite polyester yarn interleaved with fluffy non-intermingled low-stretch fiber and intermingled blended fiber.Colored polyester POY is used to produce the c

324、olored composite yarn directly by texturing,eliminating the complicated downstream dyeing process,reducing the cost of the product,simplifying the process and lessening the pollution to the environment Hengyi Petrochemical 2021 Annual Report 56 Main products Stage of production technology Core techn

325、ical personnel Patented technology Advantage in product R&D Texturing Mass production Multiple persons Introduction and innovation A double-solenoid valve opening and closing logic design is adopted.The two solenoid valves arranged in parallel or series are designed with a reasonable opening and clo

326、sing logic to jointly control them to realize intermittent switching of the tangle jet airflow and the intelligent design of polyester fancy composite yarn tangling points.At the same time,it reduces the frequency of use of a single solenoid valve to prevent overheating damage to a single solenoid v

327、alve,effectively improving the efficiency of texturing.Texturing Mass production Multiple persons Introduction and innovation The Company has a more mature technology for producing products with a monofilament fineness of 0.5-1.0dpf,which provides technical support and experience accumulation for th

328、e development of finer products.Through the supporting of pre-and post-spinning equipment,the Company realizes independent R&D.At present,the Companys production technology of ultra-fine fibers of less than 0.5dpf is mature,the quality is stable,and relevant production conditions are available.They

329、are mainly used for producing high-grade fabrics and decorative fabrics.Texturing Mass production Multiple persons Introduction and innovation In pre-spinning,the third monomer is introduced into the reaction system to prepare low-temperature dyeable cationic POY,which is matched with post-spinning

330、and texturing to prepare DTY products,thereby reducing the cost of subsequent dyeing and environmental pollution.Texturing Mass Multiple Introduction The technology is independently researched and developed by Hengyi Petrochemical 2021 Annual Report 57 Main products Stage of production technology Co

331、re technical personnel Patented technology Advantage in product R&D production persons and innovation the Company.Nubby products are produced under special process conditions such as stretching temperature and stretching ratio.With the characteristics of cotton and linen fabrics,they are widely used

332、 in summer cotton and linen fabrics and popular in the market.Texturing Mass production Multiple persons Introduction and innovation Composite yarns are made by processing two or more fibers.The processed products have the characteristics of various fibers,such as fabric cotton feel,softness and bre

333、athability,and different patterns of dyeing.Examples include FDY-DTY composite yarn,high-and low-viscosity composite yarn,cationic dyed polyester compound,etc.This product is widely used in high-end fabrics,and the market demand is great Texturing Mass production Multiple persons Introduction and innovation The special-shaped section of the spinning spinneret produces polyester fibers with differe