恒逸石化股份有限公司2020年年度報告（英文版）（405頁）.PDF

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1、2020 Annual Report of Hengyi Petrochemical Co.,Ltd.1 Hengyi Petrochemical Annual Report 2020 This document is a translated version of the Chinese version 2020 Annual Report(“2020 年年度報告全文”),and the published annual report in the Chinese version shall prevail.The complete published Chinese 2020 Annual

2、 Report may be obtained at http:/.2020 Annual Report of Hengyi Petrochemical Co.,Ltd.2 Chairmans Statement 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.3 Chairmans Statement Looking back at 2020,it was an extremely extraordinary,unusual and difficult year for every country,region,company and i

3、ndividual.Confronted with the sudden outbreak of the once-in-a-century coronavirus pandemic,all Hengyi staff have made their concerted efforts and demonstrated their solidarity and resilience.They are not afraid of difficulties and never shrink from challenges.They seize the day and live it to the f

4、ull.They keep forging ahead with entrepreneurial passion and strength,and achieve encouraging results in 2020.Over the past year,we planned ahead and took all factors into consideration,we shouldered responsibility with persistence and dedication,we protected life and guaranteed production,we took a

5、ctions to save time and maintain profitability.With all these efforts,we have enabled the Group to continue its rapid growth,and completed all the targets in Hengyis strategy.Over the past year,we made efforts in achieving further progress;we adhered to the overall strategy of engaging in refinery,p

6、olyester and polyamide industries;we promoted the construction of Hengyi(Brunei)PMB Petrochemical Project Phase II and major domestic projects;we put Haining Hengyis 1MMTA Differential Environmental Protection Functional Fiber project into production,which further highlighted the advantage of integr

7、ated operation of full industry chain.Over the past year,we persevered with our goals regardless of adverse external factors;we enhanced the leading role of digital intelligence;we increased investment in scientific research;we put new Hengyi Research and Development Center formally into use;we achi

8、eved many major breakthroughs in scientific research relying on the R&D platform developed by Hengyi together with Zhejiang University,Donghua University,Nanjing Tech University,etc.Three manufacturing enterprises of Zhejiang Shuangtu New Materials,Hangzhou Yijing and Jiaxing Yipeng have been certif

9、ied as National High-tech Enterprises.Look back at 2020,we should say our achievements did not come easily.None of these achievements would have been possible without the hard work and contribution of all our staff,the tolerance and understanding of all their family members,and the care and support

10、of leaders at all levels and friends from all sectors.Here,I would like to extend my sincere thanks and highest respect to all of you!Whats past is prologue.The new year brings new hope,and new journey experiences new dream.The year of 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.4 2021 marks

11、the 100th founding anniversary of Communist Party of China.We have set out the grand vision for high-quality development in the next five years,and made“1-2-6”strategy implementation plan focused on the construction of 1 platform,2 centers,and 6 bases,and set the target of becoming a world-class pet

12、rochemical group.Even though tremendous success has been gained,we still have a long way to go since the worldwide pandemic has not been quelled yet,the international situation is still complex and the market competition is becoming more intense.Therefore,we shall remain resolve,assume responsibilit

13、y,and forge ahead.Instead of aiming too high or underestimating our own capabilities,we shall lay a solid foundation for Hengyi!Chairman:Qiu Yibo 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.5 Section I Important Notes,Contents and Interpretation The board of directors,Supervisory Committee,Di

14、rectors,Supervisors and Senior Management of the Company guarantee that the contents of the 2020 Annual Report(hereinafter referred to as the Report)are true,accurate and complete,free from false records,misleading statements or major omissions,and bear individual and joint legal liabilities.The fin

15、ancial report of the Report has been audited by Zhongxinghua Certified Public Accountants LLP and a standard unqualified audit report has been issued.Qiu Yibo,head of the Company,Mao Ying,person in charge of the accounting work,and Wu Zhen,head of the accounting body(accountant in charge),declared t

16、hat they would ensure the truthfulness,accuracy and completeness of the financial report in this Report.This Report has been deliberated and approved at the 8th meeting of the 11th Board of Directors of the Company.All Directors have attended the Board meeting at which this Report was deliberated.Th

17、e profit distribution plan approved by the Board of Directors is as follows:Based on the base of 3,681,645,407,a cash dividend of RMB3(including tax)will be distributed to all shareholders for every 10 shares,no bonus shares will be distributed,and no common reserve fund will be converted into share

18、 capital.If the total share capital of dividend-paying date of record changes due 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.6 to additional issuance,repurchase of shares and conversion of convertible bonds before the Company pays dividends to date of record,the Company plans to maintain the

19、 distribution ratio unchanged and adjust the corresponding total share capital.The profit distribution plan for 2020 shall be submitted to the 2020 General Meeting of Shareholders for deliberation and approval.Forward-looking statements such as future plans,development strategies,industry discussion

20、s and prospects involved in this Report do not constitute the Companys substantive commitment to investors.Please pay attention to investment risks.This Report describes in detail the main risks currently faced by the Company and the countermeasures.Please refer to the relevant contents in Section I

21、V.2020 Annual Report of Hengyi Petrochemical Co.,Ltd.7 Table of Contents Section I Important Notes,Contents and Interpretation.5 Section II Company Profile and Main Financial Indicators.11 Section III Business Summary.18 Section IV Discussion and Analysis of Business Situation.32 Section V Important

22、 Matters.108 Section VI Changes in Shares and Shareholders.152 Section VII Preference Shares Relevant Situation.167 Section VIII Relevant Situation of Convertible Corporate Bonds.168 Section IX Directors,Supervisors,Senior Management and Employees.172 Section XIII Catalogue of Documents for Referenc

23、e.405 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.8 Definitions Item Refers to Definitions Hengyi Petrochemical,Company,the Company Refers to Hengyi Petrochemical Co.,Ltd.Shenzhen Stock Exchange,the exchange Refers to Shenzhen Stock Exchange Hengyi Group Refers to Zhejiang Hengyi Group Co.,Lt

24、d.Hengyi Limited Refers to Zhejiang Hengyi Petrochemicals 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 Petrochem

25、ical Co.,Ltd.Hainan YISHENG Refers to Hainan YISHENG Petrochemical Co.,Ltd.Hengyi polymer Refers to Zhejiang Hengyi Polymer Co.,Ltd.Hengyi Hi-tech Refers to Zhejiang Hengyi High-tech Materials Co.,Ltd.Haining New Materials Refers to Haining Hengyi New Materials Co.,Ltd.Haining Thermoelectric Refers

26、to Haining Hengyi Thermoelectricity Co.,Ltd.Guangxi Hengyi New Materials Refers to Guangxi Hengyi New materials Co.,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

27、 Materials Co.,Ltd.Hangzhou Yichen Refers to Hangzhou Yichen Chemical Fiber Co.,Ltd.Shaoxing Hengming Refers to Shaoxing Keqiao Hengming Chemical Fiber Co.,Ltd.Suqian Yida Refers to Suqian Yida New Material Co.,Ltd.Ningbo Hengyi Trade Refers to Ningbo Hengyi Trading Co.,Ltd.2020 Annual Report of Hen

28、gyi Petrochemical Co.,Ltd.9 Item Refers to Definitions Hangzhou 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 Invest

29、ment Co.,Ltd.Hong Kong Tianyi Refers to Hongkong Tianyi International Holding Co.,Ltd.Hengyi Investment Refers to Hangzhou Hengyi Investment Co.,Ltd.Hengyi Polyamide Refers to Zhejiang Hengyi Polyamide Co.,Ltd.Dongzhan Shipping Refers to Dongzhan Shipping Co.,Ltd.Fulida Group Refers to Fulida Group

30、Holding Co.,Ltd.Xinghui Chemical Fiber Refers to Xinghui Chemical Fiber Group Co.,Ltd.Brunei Refining and Petrochemical Project,PMB Petrochemical Project Refers to Petrochemical projects invested and built by the Company in Brunei PX Refers to P-xylene,colorless transparent liquid,used in the produc

31、tion of 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 the raw material of plasticizer and dye intermediate.PIA Refers to Iso-phthalic acid,mainly used in the production of al

32、kyd 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 Refers to Ethylene glycol,mainly used to produce polyester fiber,antifreeze,unsaturated polyester resin,lubricant,plast

33、icizer,nonionic surfactant and explosives,etc.2020 Annual Report of Hengyi Petrochemical Co.,Ltd.10 Item Refers to Definitions PET,Polyester Refers to Polyethylene terephthalate,a fiber-forming polymer prepared by direct esterification and continuous polycondensation reaction of PTA and MEG as raw m

34、aterials POY Refers to Pre-oriented yarn or partially oriented yarn FDY Refers to Fully drawn yarn,also known as polyester drawn yarn DTY Refers to Draw textured yarn,also known as polyester textured yarn CPL Refers to Caprolactam,mainly used to produce polyamide fiber,engineering plastics,plastic f

35、ilm,etc.It is widely used in industrial and civil fields Differential yarn Refers to Varieties that are innovative in technology or performance or have certain characteristics and are different from conventional yarns Yuan,RMB10,000 Refers to RMB yuan and RMB 10,000 Reporting period/during reporting

36、 period/this reporting period Refers to From January 1,2020 to December 31,2020 End of reporting period/end of the current reporting period Refers to As of December 31,2020 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.11 Section II Company Profile and Main Financial Indicators I.Company Profil

37、e 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 Foreign name(if any)HENGYI PETROCHEMICAL CO.,LTD.Foreign abbreviation HYPC Legal Representative Qiu Yibo P

38、lace 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 Office address Building 3,Hengyi Nanan Mingzhu,260 North Shixin Road,Xiaoshan District,Hangzhou City,Zhejiang Province Postal code of office

39、 address 311215 Company website http:/ E-mail II.Contact Person and Contact Information Secretary of the board Securities representative Name Zheng Xingang Chen Shasha Contact address Board of Directors Office,16/F,Building 3,Nanan Mingzhu,No.260 North Shixin Road,Xiaoshan District,Hangzhou City,Zhe

40、jiang Province Board of Directors Office,16/F,Building 3,Nanan Mingzhu,No.260 North Shixin Road,Xiaoshan District,Hangzhou City,Zhejiang Province Tel(0571)83871991(0571)83871991 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.12 Fax:(0571)83871992(0571)83871992 E-mail III.Information Disclosure a

41、nd Place of Preparation Name of the information disclosure media selected by the Company China Securities Journal,Securities Times,Shanghai Securities News and Securities Daily The website address of the website designated by the CSRC for publishing the annual report http:/ where the Companys annual

42、 report is prepared Office of Board of Directors of Hengyi Petrochemical Co.,Ltd.IV.Registration Changes Organization Code 9145050019822966X4 Changes in the Companys main business since listing(if any)No changes Previous changes of controlling shareholders(if any)No changes V.Other Relevant Informat

43、ion The accounting firm engaged by the Company Name of accounting firm Zhongxinghua Certified Public Accountants LLP Office address of accounting firm 15/F,East Tower,No.1 Fuwai Street,Xicheng District,Beijing Signature name of accountants Liu Hongyue,Wang Guohai Sponsor institutions engaged by the

44、Company to perform continuous supervision duties during the reporting period Name of sponsor institution Office address of sponsor institution Name of sponsor representative Continuous supervision period CITIC Securities CO.,LTD No.48 Liangmaqiao Road,Chaoyang District,Beijing Mao Zongxuan,Xu Rui Ja

45、nuary 2021-December 2021 Financial consultants engaged by the Company to perform continuous supervision duties 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.13 during the reporting period Applicable Not applicable VI.Main Accounting Data and Financial Indicators Does the Company need to retroac

46、tively adjust or restate the accounting data of previous years Yes No Reason for retrospective adjustment or restatement Combination of businesses under common control 2020 2019 Increase/decrease of this year over the previous year 2018 Before adjustment After adjustment After adjustment Before adju

47、stment After adjustment Operating income(Yuan)86,429,630,191.87 79,620,543,631.74 79,620,543,631.74 8.55%88,065,815,535.96 88,065,815,535.96 Net profit attributable to shareholders of the listed company(Yuan)3,071,998,839.75 3,201,348,425.33 3,190,185,517.79-3.70%1,872,494,729.34 1,872,494,729.34 Ne

48、t profit after deducting non-recurring gains and losses attributable to shareholders of the listed company(Yuan)2,479,101,027.63 2,725,438,479.51 2,725,438,479.51-9.04%1,536,880,249.17 1,536,880,249.17 Net cash flow from operating activities(Yuan)5,013,772,777.95-112,081,728.16-91,125,777.91 5,602.0

49、4%1,607,078,608.23 1,607,078,608.23 Basic earnings per share 1.08 1.13 1.13-4.42%0.76 0.76 Diluted earnings per share 1.07 1.13 1.13-5.31%0.76 0.76 Weighted average ROE 12.56%14.73%14.54%-1.98%12.29%12.29%2020 Annual Report of Hengyi Petrochemical Co.,Ltd.14 End of 2020 End of 2019 Increase/decrease

50、 at the end of this year over the end of the previous year End of 2018 Before adjustment After adjustment After adjustment Before adjustment After adjustment Total assets(Yuan)92,260,268,155.54 85,230,757,616.78 85,763,292,709.24 7.58%61,834,734,496.64 61,834,734,496.64 Net assets attributable to sh

51、areholders of the listed company(Yuan)24,006,633,612.78 23,253,008,414.00 23,741,845,506.46 1.12%18,363,073,231.64 18,363,073,231.64 Main reasons for the change:Cash flow from operating activities increased significantly:During the reporting period,the net cash flow from operating activities increas

52、ed significantly after the Brunei project was put into production in November 2019.The occupation of operating funds rose.When it was put into production near the end of the year,the operating cash outflow was affected by settlement and the corresponding operating cash inflow was not received,result

53、ing in negative net operating cash flow in 2019.During this reporting period,with the Brunei Project maintaining high load and stable operation,the net operating cash flow of the Company substantially improved.For details,please refer to Section IV Discussion and Analysis of Operation.The Companys n

54、et profit before and after deducting non-recurring gains and losses in the last three fiscal years is negative,and the audit report of the last 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

55、negative Yes No 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.15 VII.Differences between accounting data under the domestic and foreign accounting standards 1.Differences in the net profit and net assets in the financial statements which are presented concurrently in accordance with the interna

56、tional accounting standard and the Chinese accounting standard No differences in the net profit and net assets in the financial statements which are presented concurrently in accordance with the international accounting standard and the Chinese accounting standard during the reporting period.2.Diffe

57、rences in the net profit and net assets in the financial statements which are presented concurrently in accordance with foreign accounting standard and the Chinese accounting standard No differences in the net profit and net assets in the financial statements which are presented concurrently in acco

58、rdance with foreign accounting standard and the Chinese accounting standard during the reporting period.VIII.Quarterly Main Financial Indicators Currency Unit:RMB First quarter Second quarter Third quarter Fourth quarter Operating income 18,872,535,104.97 20,541,889,288.67 21,906,722,601.01 25,108,4

59、83,197.22 Net profit attributable to the shareholders of the company 811,550,417.16 1,090,756,257.98 1,154,405,533.02 15,286,631.59 Net profit after deducting non-recurring gains and losses attributable to shareholders of the listed company 729,510,068.79 1,026,027,096.40 994,305,397.12-270,741,534.

60、68 Net cash flow from operating activities 543,694,408.55 925,772,901.47 1,318,266,768.96 2,226,038,698.97 Whether the aforesaid financial indicators or their sum are significantly different from the 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.16 financial indicators related to the quarterly

61、and semi-annual reports disclosed by the Company Yes No IX.Non-recurring Profit and Loss Items and Amounts Currency Unit:RMB Item Amount in 2020 Amount in 2019 Amount in 2018 Notes Profit or loss from the disposal of non-current assets(including the write-off of asset impairment provision)-6,741,262

62、.61-1,811,565.51 2,249,652.18 Tax refund or exemption approved ultra vires or without any formal approval 12,921,483.38 5,957,948.27 7,979,386.68 Government grants recorded into current profit and loss(except for those are closely related to Company business and are enjoyed in a fixed or quatitative

63、 basis in accordance with unified national policiesstandard)318,607,292.74 420,716,519.76 102,224,764.73 Current net profit or loss from subsidiaries formed by business combination under common control,from period-beginning to acquisition date 19,376,584.76 36,175,922.94 161,261,977.54 Profit or los

64、s from contingencies irrelevant to normal business operations of the Company 0.00-2,173,136.66-118,450.84 The gains or losses arising from the fair value changes of held-for-trading financial assets,derivative financial assets,held-for-trading financial liabilities,and derivative financial liabiliti

65、es,as well as investment gain received from the disposal of held-for-trading financial 487,752,983.95 301,297,013.33 187,235,582.94 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.17 assets,derivative financial assets,held-for-trading financial liabilities,derivative financial liabilities and oth

66、er debt investments,except for effective hedging transactions that are related to the Companys ordinary business Profit or loss from entrusted loans 41,586,615.56 29,136,336.48 36,538,791.66 Income from entrusted operation 1,698,113.20 1,698,114.17 4,622,641.50 Other non-operating income and expense

67、 in addition to the above-6,299,334.89-14,994,635.24 4,640,725.70 Other profit or loss that complies with the definition of non-recurring profit and loss 2,595,730.83-2,065,748.97 5,731,998.98 Less:effect of income tax 215,685,156.22 139,947,035.37 137,414,288.03 Influenced amount of the minority sh

68、areholders equity(after-tax)62,915,238.58 169,242,694.92 39,338,302.87 Total 592,897,812.12 464,747,038.28 335,614,480.17-For the non-recurring gain or loss items determined by the Company in accordance with the definition provided in the Explanatory Announcement No.1 on Information Disclosure for C

69、ompanies Offering Their Securities to the Public-Non-recurring Profits and Loss,and for the Companys classification,as recurring items,of the non-recurring gain or loss items enumerated in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Publ

70、ic-Non-recurring Profits and Loss,the relevant reasons should be explained.During the reporting period,there was no case of defining the listed non-recurring profit and loss items as recurring profit and loss items according to the definition of Explanatory Announcement No.1 on Information Disclosur

71、e for Companies Offering Their Securities to the Public-Non-Recurring Profits and Loss.2020 Annual Report of Hengyi Petrochemical Co.,Ltd.18 Section III Business Summary I.Main businesses of the Company during the reporting period The Company shall comply with the disclosure requirements of Shenzhen

72、 Stock Exchange Industry Information Disclosure Guidelines No.18-Listed Companies Engaged in Chemical Industry Related Business.i.Overview of the Companys main businesses during the reporting period Hengyi Petrochemical(stock code:000703)is committed to developing into one of the leading petrochemic

73、al industry groups in China and the first-class in the world.Continue to enhance the Companys comprehensive competitiveness through resource sharing and industrial coordination.Under the guidance of the development strategy of crude oil,polyester and polyamide,the Company,relying on Brunei Refining

74、and Petrochemical Project,has stepped up its efforts in internationalization,lined up the last kilometer of the whole industrial chain from oil refining to chemical fiber,realized a highly matched columnar balanced integrated industrial chain in the upstream,midstream and downstream,and formed a uni

75、que petrochemical+multi-level three-dimensional industrial layout with polyester+polyamide double-fiber driven petrochemical industrial chain as the core business,supply chain service business as the growth business,and differential fiber products and industrial intelligent technology application as

76、 the emerging business.1.Petrochemical chemical fiber business(1)One of the worlds leading refining&petrochemical-chemical fiber industrial chain integration leaders During the reporting period,the Companys unique industrial layout of crude oil,polyester and polyamide continued to improve.In the con

77、text of scientific pandemic prevention and smooth production and operation,the Company maintains high-load and stable operation throughout the year,and demonstrates its strengths in polyester industry expansion,quality improvement,PTA industry potential tapping and transformation,and refining and ch

78、emical industry full production.Besides,the Company uncovers its integrated,balanced and internationalized operation mode of industrial chain.The Company has developed into one of the worlds leading enterprises integrating 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.19 the industrial chain of

79、 crude oil-PX-PTA-polyester and crude oil-benzene-CPL-polyamide.Upholding the strategic development policy of consolidating,highlighting and enhancing the competitiveness of its main business,the Company focuses on its main business,continuously increases investment in product research and developme

80、nt and industrial intelligent technology,and enhances its comprehensive competitive advantage,thereby ranking in the forefront of the industry for many years.During the reporting period,the Company joined hands with strategic partners to realize complementary advantages,continuously extend the petro

81、chemical industry chain,enrich product categories and further improve the product structure,effectively consolidate the core competitiveness of the main business,strengthen the profitability of products and improve the ability to resist market risks.The Companys main products include gasoline,diesel

82、 oil,kerosene and other refined oil,liquefied petroleum gas(LPG),etc.Petrochemical products such as p-xylene(PX),benzene,purified terephthalic acid(PTA)and caprolactam(CPL);polyester preoriented yarn(POY),polyester draft yarn(FDY),polyester elastic yarn(DTY),polyester staple fiber,polyester(PET)chip

83、s,polyester bottle chips and other chemical fiber products are widely used to meet the rigid requirements of the national economy and peoples livelihood.2020 Annual Report of Hengyi Petrochemical Co.,Ltd.20 Note:Polyamide chips are products operated by Hengyi Group,the controlling shareholder.As of

84、the disclosure date of this report,the Companys designed crude oil processing capacity is 8 million tons/year,and it has been disclosed that the Company plans to add 14 million tons/year of crude oil processing capacity;the PTA production capacity of participating holding companies is 13 million ton

85、s/year,and the new PTA production capacity under construction is planned to be 6 million tons/year;the capacity of PIA is 300,000 tons/year,and the capacity of CPL(caprolactam)is 400,000 tons/year;the polyester fiber production capacity is 7.5 million tons/year,and the new polyester fiber production

86、 capacity under construction is 750,000 tons/year;the production capacity of polyester bottle chips is 2 million tons/year,ranking forefront in the industry.Fig.2 Company Layout of Petrochemical and Chemical Fiber Industry Chain Table 1 Production Capacity of Main Products of the Company(10,000 Tons

87、/Year)Products Capacity Chemical products 265 Oil products 565 PTA 1,300 Petrochemical Chemical fiber Poluamide industry chain Oil refining Gasoline Diesel oil Kerosene Refined oil Petroleum Refining integration Olefin Propylene Ethylene Polypropylene Polythylene Ethylene glycol Arene P-xylene Benze

88、ne Pure terephthalic acid Caprolactam Polyamide Polyamide chip Polythylene terephthalate Polyamide short fiber Polyester filament yarn Polyester filament yarn Draw texturing yarn Polyamide industry chain Weaving fields(such as textile,garment and home textiles)Indicate the domestic business Indicate

89、 the Brunei business Indicate the future business Indicate downstream use Bottle chip 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.21 Note:1)Polyester fiber products include POY,FDY,DTY,staple fiber and chip products.2)This table is the actual production capacity table of the Company in the re

90、porting period.During the reporting period,the Company continued to attach importance to investment in research and development of new products,actively responded to the carbon peak and carbon neutrality strategy,and adhered to the guidance of green manufacturing and circular economy.In the polyeste

91、r sector,it continued to carry out product development and achievement transformation around the three major themes of green environmental protection,function and bio-base.Internally,the Company optimizes the sales system,actively grasps the market demand,and fully taps and reasonably guides custome

92、r demands through the organic linkage of research and development,production and sales;externally,the Company,through cooperation with colleges and universities,builds an industry-university-research school-enterprise ecology and effectively explores basic materials research support and cutting-edge

93、 key technologies.During the reporting period,the Company adopted a multi-path,multi-echelon and 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.Its antimony-free and e

94、nvironment-friendly Eticont series products are also recognized by more and more customers,and the sales volume continues to rise.The flame retardant fibers continue to maintain a strong market share in domestic flame retardant products.The market popularity of antibacterial and anti-virus products

95、continues to rise,and antibacterial and anti-virus fibers will become a crucial profit growth point for differentiated products.(2)Products covering the rigid needs of the national economy and peoples livelihood The Companys terminal products mainly include refined oil products such as gasoline,dies

96、el oil and kerosene,as well as polyester products such as polyester filament,polyester staple fiber and bottle chips,of which refined oil products such as gasoline,diesel oil and kerosene provide energy supply for corresponding equipment;polyester filament includes POY,FDY,DTY and other PIA 30 Polye

97、ster fiber products 750 Polyester bottle chip 200 Caprolactam 40 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.22 products,which are used in the production of fabrics and linings such as clothing,home textiles and decorations,and can also be used for industrial purposes such as webbing,zippers,

98、tents,automobile interiors and ear threads of masks.Among them,FDY products of the Company can be used as medical and other materials to meet the increasing demand of downstream customers for raw materials for medical supplies;polyester staple fiber can be widely used in spinning,non-spinning and fi

99、lling fields;bottle chips are widely used in food packaging and medical materials production,such as water bottles,oil bottles,carbonic acid,hot filling,fast-eating hot carbonic acid,high B value water bottles,high viscosity oil bottles and low viscosity water bottles.2020 Annual Report of Hengyi Pe

100、trochemical Co.,Ltd.23 2.Petrochemical+business(1)Supply chain service business is conducive to improving product operation capability and enhancing value-added services Table 2 Main Product Features and Application Fields Products Application One hydrocarbon,colorless clear liquid and extensive use

101、,main raw material for producing the purified terephthalic acid(PTA)and also used for synthetic plastics,drug and pesticide.Mainly used as fuel of various fuel oil power plants and supply of heat.Used as fuel of automobiles,motorcycles,speedboats,helicopters,agricultures and forestry aircrafts,vehic

102、les with diesel engines(including trains),vessels and diesel boilers.Mainly used for producing polyester products,widely used for all the aspects of national economies(such as clothing,decoration,electronics and architecture).75%used for polyester fiber,20%used for bottle polyester and 5%used for fi

103、lm polyester(mainly for civil use in the downstream).Used for reprocessing and production of DTY and fiber products with special styles and widely used for clothing and industry.Directly used for weaving as well as production of clothing and upholstery fabric.Widely used for clothing and industry an

104、d also used as isolation material(including protection suit).Mainly used to produce polyamide fabric,engineering plastics and plastic film as well as widely used for industry and civilian field.Directly used for weaving and widely used for clothing and industry,garment materials and lining.Widely us

105、ed for spinning,nonwoven and filling.The non-woven fabrics can be used as raw material of producing the mask as well as also used for downstream disinfecting wipes and disposable protective equipment.Polyester staple fiber Polyester bottle chip PET chip Widely used for indirect spinning as well as p

106、roducing textile raw materials(such as filament yarn and short fiber)and plastics.Mainly used for food packaging(including coke bottle,beverage bottle,water bottle and oil bottle).Refined oil PIA is a white crystalline powder or needle-like crystal used to produce alkyd resins,unsaturated polyester

107、resins and other high polymers and plasticizers.It is also used to make film film color-forming electrodes,coatings,and dyeing polyester fibers modifier and medicine.2020 Annual Report of Hengyi Petrochemical Co.,Ltd.24 With the continuous improvement of the integrated and balanced development of th

108、e Companys industrial chain,the Company has strengthened its supply chain service management capacity and innovated and promoted intelligent management and operation modes.Relying on refining and chemical fiber production base,the Company develops domestic and overseas regional markets and optimizes

109、 product layout;strengthens the construction of digital plants and actively explores flexible personalized customization of production through big data means;adopts a variety of tools to improve product operation capability,explores the complementary advantages of raw material procurement and produc

110、t sales,and actively plays the strengths of industrial chain integration to create product price differences.The Company actively carries out comprehensive distribution services for raw materials and products,with Hengyi Micro Mall and marketing supply chain system as the core online and logistics b

111、usiness as the support offline to realize effective integration online and offline.Continuously optimize the functional application of Hengyi Micro Mall,including price inquiry,quick order placing,market information,intelligent logistics management platform(HTTMS),financial services and other suppor

112、ting services;improve the efficiency of the marketing closed-loop system,which sees an exploding transaction volume at present;innovate the unique omni-channel logistics control system and build a tripartite logistics transportation platform.With the commissioning and operation of Brunei Refining an

113、d Petrochemical Project,the Company has actively conducted supporting shipping business,accelerated the implementation of integrated management of the supply chain services,formed an intelligent supply chain closed-loop system of plant-product-warehouse-logistics-customer,and led the upgrading of in

114、telligent supply chain services in the industry.(2)China Zheshang Banks equity investment provides stable profits for the Company Established in 2004,China Zheshang Bank is one of the 12 national joint-stock commercial banks approved by the China Banking and Insurance Regulatory Commission.It was li

115、sted on the Main Board of Hong Kong Stock Exchange on March 30,2016 and Shanghai Stock Exchange on November 26,2019,becoming an A+H listed bank.At present,it has developed into a high-quality commercial bank featuring solid foundation,excellent benefits,rapid growth and perfect risk control.With the

116、 completion of the A+H layout,China Zheshang Bank will accelerate its future growth.The Company will further optimize its strategic layout and continuously create 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.25 value for shareholders through the growth premium of China Zheshang Bank.According

117、to the 2020 annual report released by China Zheshang Bank,China Zheshang Bank achieved an operating income of RMB47.703 billion in 2020 and net profit attributable to shareholders of RMB12.309 billion.As of the end of December 2020,the total assets of China Zheshang Bank were RMB2,048.225 billion,an

118、 increase of 13.74%over the end of the previous year.The Bank is actively accelerating the transformation of digitalization,modernization and professional innovation,taking financial technology as the engine,and continuously enhancing its high-quality development and competitive strength.(ii)Industr

119、y situation and company status The petrochemical and chemical fiber industry in which the Company is located belongs to the basic industry of the national economy and peoples livelihood.The fluctuation of the industry is mainly affected by factors such as upstream raw materials,product supply and do

120、wnstream product market.With the continuous advancement of refining and petrochemical projects,the self-sufficiency rate of petrochemical products has gradually risen,and the global pricing power has increased.During the reporting period,the industrial concentration was further improved.1.Refining a

121、nd petrochemical According to Platts,by the end of 2020,the refining and petrochemical production capacity in Southeast Asia is about 277 million tons/year.In terms of refinery capacity,the top five are Singapore(69 million tons/year),Thailand(61 million tons/year),Indonesia(59 million tons/year),Ma

122、laysia(48 million tons/year),Vietnam(17 million tons/year),and Bruneis refinery capacity currently ranks sixth(8 million tons/year).Bruneis refining capacity will reach 22 million tons/year after Phase II of Bruneis refining and petrochemical industry is put into operation,ranking fifth in Southeast

123、 Asias refining capacity.2.PTA According to CCF,by the end of 2020,the global PTA production capacity is mainly concentrated in China,and the domestic production capacity is about 57.63 million tons.As one of the leading enterprises in the PTA industry,the Company has strategically laid out three PT

124、A bases along the coastline from north to south,namely Dalian in Liaoning,Ningbo in Zhejiang and Yangpu in Hainan,with a total PTA production capacity of about 13 million tons/year,ranking first in the 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.26 world.2.1 PIA According to CCF,by the end of

125、 2020,the national PIA production capacity is about 450,000 tons/year,and the Companys production capacity is 300,000 tons/year,accounting for about 66%of the national total.3.Polyester According to CCF,most of the production capacity of polyester is concentrated in the Asia-Pacific region,and China

126、 is the worlds largest textile producer and exporter.By the end of 2020,Chinas total production capacity has exceeded 62 million tons/year,of which 42.75 million tons are polyester filament.In 2020,the concentration of production capacity has further increased,with CR6(the top six companies in the i

127、ndustry)accounting for 66%,polyester staple fiber production capacity reaching 7.92 million tons,up 4.4%year on year,and polyester bottle chip production capacity reaching 11.96 million tons/year.The Company has continuously increased the proportion of differential fiber varieties and sped up the de

128、velopment of customized products to meet differential and personalized needs of the market,and its products have enjoyed a good reputation in the market for a long time.With a polyester production capacity of 7.5 million tons,the Company ranks first nationwide in terms of polymerization capacity,inc

129、luding 6.62 million tons of filament and 880,000 tons of staple fiber.The Company produces 2 million tons of bottle chips per year,ranking forefront in the country.II.Significant Changes in Major Assets 1.Significant changes in major assets Major assets Description of significant changes Equity asse

130、ts Mainly refer to the investment of newly-added equity-holding companies and the investment gains and losses recognized under the Equity Method Fixed assets Mainly refer to the consolidation of Yisheng PIA Project and Haining New Materials Project during the reporting period Intangible assets Mainl

131、y due to the increase in intangible assets of newly established companies during the reporting period 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.27 Construction in progress Mainly due to the increase in new materials projects in Haining during the reporting period 2.Main overseas assets Spec

132、ific contents of assets Reason Asset size Location Operation mode Control measures to ensure asset safety Income status Proportion of overseas assets to the Companys net assets Whether there is significant impairment risk Holding subsidiaries Overseas investment 5,606,296,100 US dollars Hong Kong/Br

133、unei/Singapore Self-built Strengthen the management control of parent company over overseas subsidiaries Good 152.38%No Description of other information None III.Analysis of Core Competitiveness The Company is one of the leading enterprises in the petrochemical and chemical fiber industries with lea

134、ding comprehensive strength in China.Its core competitiveness is mainly reflected in the following aspects:1.The international industry strategy of adhering to the real economy and highlighting the main business to facilitate high-quality development of the Company Upholding the strategic policy of

135、consolidating,highlighting and optimizing the competitiveness of main business,the Company has taken the lead in the fields of polyester melt direct spinning,PTA,caprolactam,etc.through alliance with other giants,and has greatly improved its technology and competitiveness in the above fields.The Com

136、pany took the lead in arranging Brunei Refining and Petrochemical Project,responded to the Belt and Road Initiative policy,adapted to the requirements of high-quality development in the new era,seized the development opportunities of Southeast Asian markets,realized the international layout and oper

137、ation of the 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.28 industry,completed the integration of vertical industrial chains,solved the bottleneck of raw materials,and complied with the trend of supply-side reform.In addition,the Company integrated the petrochemical chemical fiber industry th

138、rough mergers and acquisitions,realized the grafting of advantages,expanded the terminal production capacity of the chemical fiber industry,and achieved the high-quality development of chemical fiber.2.The strengths of the whole industrial chain featuring balanced integration of upstream and downstr

139、eam strengthen profitability and anti-risk ability The Company has developed into a leading enterprise in the integration of PX-polyester and benzene-polyamide industrial chains in the world,and has built a columnar balanced integrated industrial chain of crude oil-aromatic hydrocarbon-PTA-polyester

140、 and crude oil-benzene-CPL-polyamide through overseas construction of upstream refineries,domestic expansion of the middle and lower reaches,and implementation of differential development modes such as mergers and acquisitions.The Company currently has a refining and petrochemical design capacity of

141、 8 million tons,PTA capacity of 13 million tons,polyester and caprolactam capacity of 7.5 million tons and 400,000 tons respectively.The upper,middle and lower reaches of the Company are self-sufficient in raw materials,realizing the balanced and coordinated development of the entire industrial chai

142、n from unique large refining and chemical to PX,PTA and polyester(PET)capacity matching.The Company carries out operation at home and abroad to enhance its ability to resist risks of operational fluctuations.Upon Phase II of the Brunei Refining and Petrochemical Project is completed and put into ope

143、ration,an ethylene-propylene-polypropylene industrial chain will be added,which is conducive to improving the intensification,scale and integration level of the Brunei Refining and Petrochemical Project;enhancing the integration,globalization and balanced cooperative operation of the Companys indust

144、ries,products and assets,as well as its sustainable profitability and anti-risk ability.3.Efficient operation and quality assurance further strengthen the scale advantage of leading market share The market share of PTA and polyester fiber products of the Company is at the forefront of the industry.A

145、s of the latest statistics,the Companys participating PTA production capacity accounts for 22.56%of the countrys effective PTA production capacity,and its participating polyester production capacity accounts for nearly 12.10%of the countrys effective polyester production 2020 Annual Report of Hengyi

146、 Petrochemical Co.,Ltd.29 capacity(data source:http:/).The industry concentration is relatively high and the scale advantage is obvious.The Company continuously upgrades and optimizes its industrial model,consolidates and expands the advantages of production capacity in all links,promotes the quanti

147、tative change of its business scale and the qualitative change of its business structure,and enhances the investment and application of large-scale equipment and energy-saving and consumption-reducing technologies.Its scale advantage promotes the stability of production equipment operation and produ

148、ct quality,and the improvement of production efficiency,and greatly reduces unit investment cost and unit energy consumption.Also,the Company outperforms its peers in terms of the unit manufacturing cost of products.Meanwhile,through large-scale procurement,the Company possesses strong operation abi

149、lity and obtains advantageous prices,thereby reducing procurement costs and providing a strong guarantee for the profitability of the final products.4.Focus on the technological advantages of high-end scientific research and innovation and continue to explore new business growth points The Company h

150、as long focused on the research and development and application of high-end products in the field of polyester chemical fiber.Relying on the school-enterprise platform,the Company has realized a diverse,serialized,premium and unique product structure.The Company fully carries out research and develo

151、pment of new products and technologies regarding the entire industrial chain,realizes full-process and flexible development of high-tech products(technologies)and transformation of scientific and technological achievements,and occupies a leading position in the domestic industry in terms of technica

152、l level.Upholding the industrial structure of crude oil,polyester and polyamide,the Company,in terms of materials,focuses on the green manufacturing of polyester and the recycling of polyester,breaks through the existing technology challenges,realizes quality recycling of polyester,and prepares high

153、-performance polyester materials with bio-based as raw materials.As for chemical engineering,in order to expand the application range of PTA,the Company is currently developing various diols of monomers needed for differential production of polyester.Also,to reduce the production cost,the Company ac

154、tively studies the development of three agents such as matting agent,catalyst and additive in the existing process.5.The industrial Internet advantages of digital intelligence promote the highly coordinated operation of the whole industrial chain 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.30

155、 The Company established the information strategy of petrochemical+industrial internet,promoted the deep integration of new-generation information and communication technology and petrochemical manufacturing industry,and strengthened the digital,networked and intelligent development of the chemical

156、fiber manufacturing industry.The Company,based on the basic policy of innovation-driven,quality and efficiency improvement,and green development,makes good use of the integration and application of information application,advanced manufacturing,automation and enterprise management technologies,build

157、s an intelligent informationization of the whole chain integrating R&D and design,logistics procurement,production control,operation and management,professional services and marketing,realizes product traceability and whole process management and control,accelerates the digital transformation proces

158、s through the integration of intelligent production,networked collaboration,customized services and digital decision-making,and promotes the transformation from manufacturing to intelligent manufacturing and from single business management to highly coordinated operation of the industrial chain.In t

159、he field of information infrastructure,the Company employs cloud computing,virtualization,5G,home base machines and other technologies to promote the construction of industrial networking,service clusters,information security,etc.to provide technical support and security for software applications.In

160、 the field of manufacturing,the Company,relying on the information interconnection among intelligent manufacturing devices such as automatic winding,automatic packaging,intelligent external inspection,AGV trolley,robot and Automatic Storage and Retrieval System,adopts network communication,Internet

161、of Things,mobility,micro-service,real-time database and other technologies to successfully develop a single ingot data flow system to realize efficient logistics operation and automatic quality control of products in workshop warehouses,and achieve process optimization,information sharing and effici

162、ency improvement among production processes.In terms of marketing services,the Company builds two software systems of micro mall and marketing supply chain,and adopts Internet marketing and customer social experience management to facilitate independent order placing,supply chain services,full proce

163、ss display of sales data,and data services for multi-dimensional portraits;realizes data sharing of various business systems,improves data interaction efficiency,eliminates information circulation barriers,and forms closed-loop processes of supply chain business such as sales,collection,distribution

164、,delivery,2020 Annual Report of Hengyi Petrochemical Co.,Ltd.31 vehicle dispatch,shipment,invoicing,etc.6.Young,professional and international team management strengths at home and abroad The Company emphasizes professional team management and introduces senior management and technical personnel fro

165、m home and abroad through various channels.While introducing external talents,the Company focuses on the cultivation of internal talents,and offers opportunities for young management talents,thereby providing a good career development channel for employees.The company has formed an international,spe

166、cialized and professional management and operation team,laying the foundation for the sustained and healthy development of the Companys industry.With the continuous expansion of the Companys scale,the Company has drawn lessons from advanced organizational management experience at home and abroad,est

167、ablished a perfect internal system,continuously implemented organizational structure optimization,continuously improved the efficiency of the Companys organizational management operation,and brought into play the advantages of scale synergy.To promote the long-term sustainable development of the Com

168、panys talent team and share the Companys development achievements with employees,apart from providing employees with competitive salary and incentive mechanisms,the Company has implemented two restricted stock incentive plans and four employee stock ownership plans since 2015,fully mobilizing the en

169、thusiasm of employees and effectively attracting high-tech talents.Through the establishment of a long-term development sharing mechanism,the Company effectively enhances the sense of belonging and cohesion of employees,and provides a talent base for its long-term development.2020 Annual Report of H

170、engyi Petrochemical Co.,Ltd.32 Section IV Discussion and Analysis of Business Situation I.Overview i.Discussion and analysis of industry situation Hengyi Petrochemical is engaged in the petrochemical and chemical fiber industry.Its raw materials come from petroleum or corresponding chemicals cracked

171、 by petroleum.The demand for final products is closely related to the food,clothing,housing and transportation of ordinary people.Important factors affecting the industry include crude oil price fluctuation,downstream demand,capacity supply and matching of upstream and downstream industrial chains.1

172、.Refining and chemical business:Rely on the competitive advantage of China-Brunei location and conform to the recovery trend of global demands(1)The recovery of the global economy and the crude oil prices are conducive to the double growth of downstream demand and profits Generally speaking,when the

173、 oil price rises steadily or moderately,it is beneficial to the operation management and efficiency improvement of petrochemical enterprises.After the current oil price plummets,the low oil price would be advantageous to petrochemical enterprises.For one thing,the low oil price is conducive to expan

174、ding the price difference of downstream products,and stimulating the growth of terminal demand,thus promoting the improvement of profits;for another,low oil prices leave room for price rise.The rise in oil prices will bring about an increase in inventory value in the industrial chain and the improve

175、ment in downstream production load,thus stimulating demand growth.The year 2020 saw great uncertainties in the global economy.Affected by the COVID-19 pandemic and OPECs production reduction falling short of expectations,commodity prices have all fallen to the bottom.In particular,the international

176、oil price has plummeted to the low level in recent years,and the panic decline of oil price has brought severe challenges to downstream chemical fiber enterprises.Also affected by the pandemic,the terminal demand shrank sharply,and at the same time,the cycle of expanding production capacity in the i

177、ndustry continued,resulting in obvious changes in the market supply and demand pattern.2020 Annual Report of Hengyi Petrochemical Co.,Ltd.33 Since the beginning of this year,with the gradual weakening of the impact of the pandemic and the recovery of crude oil demand brought about by global economic

178、 recovery,driven by the active production reduction of OPEC and oil-producing countries and the passive production reduction of non-OPEC oil-producing countries,there have been clear signs of improvement at both ends of supply and demand in the oil market.In the long run,oil will return to the norma

179、l supply,and international oil prices will continue to rise.At the macro policy level,countries ease monetary and fiscal policies.In particular,the Federal Reserve implements various loose monetary policies to stabilize the economy.Loose macro policies and the weakness of the US dollar index have pl

180、ayed a significant supporting role in the oil market.At present,Brent crude oil prices are gradually returning to the normal range of USD50-70 per barrel.For the downstream,economic recovery is expected to further stimulate demand growth due to the long-term rigidity of the Companys products corresp

181、onding to downstream demand.(2)Southeast Asia boasts a broad refining and chemical market prospect and Hengyi Brunei seizes the first-mover advantage Compared with the surplus supply of domestic refined oil products,Southeast Asias refined oil market has a large gap and broad prospects.According to

182、Platts,from the supply level,Southeast Asia has an existing production capacity of about 277 million tons/year,with Singapore,Thailand,Indonesia and Malaysia at the forefront.Due to the 40-50 years of operation of some refinery plants,outdated technology,poor management,heavy burden of government su

183、bsidies and other reasons,the shut-down capacity in Asia is expected to reach 70.15 million tons in the past three years.Asia plans to add new capacity in China and India,while Southeast Asia only saw a small increase in production in Brunei,Indonesia and Malaysia.The demand for refined oil has grea

184、t growth potential.Moreover,Southeast Asia is relatively close to Australia,and Australia needs to import refined oil.According to the data of the Australian Renewable Energy Agency,the import volume of gasoline,diesel and coal was about 8.4 million tons/year in 2019 and 6.9 million tons/year in 202

185、0.In addition,affected by the global pandemic,the overall demand is affected to some extent,but the overall trend of imported refined oil products in Southeast Asia remains good.According to Platts,in terms of gasoline products,Southeast Asia imported about 58.33 million tons/year in 2019 and about

186、48.5 million tons/year in 2020.The main importing countries are Indonesia,Malaysia,2020 Annual Report of Hengyi Petrochemical Co.,Ltd.34 Singapore,Philippines,Myanmar and other places,while the main exporting countries are Singapore and Thailand.In terms of aviation kerosene,all countries are relati

187、vely self-sufficient in the aviation industry and are dominated by trade circulation.Malaysia is the main importer in Southeast Asia,and several other countries with smaller refineries,such as the Philippines and Sri Lanka,imported about 4.7 million tons/year in 2019 and 4 million tons/year in 2020.

188、In terms of diesel oil,there is a big gap in Southeast Asia,with imports of about 42 million tons/year in 2019 and 38 million tons/year in 2020.The main importing countries are Vietnam,Bangladesh,the Philippines,Sri Lanka,Myanmar,Indonesia and Malaysia.In addition,with the implementation of the new

189、IMO standard in 2020,the demand for low-sulfur fuel oil has risen.Singapore is a major shipping base with an import volume of 5.5 million tons/year.Some marine diesel oil(MGO)needs to replace marine fuel oil,and the import volume of diesel oil in Southeast Asia will increase.As the profit vane of re

190、fineries in Southeast Asia,from the perspective of the price difference of refined oil cracking in recent seven years,the price difference of refined oil cracking was at the lowest level in history during the pandemic in 2020.Since 2021,with the recovery of the pandemic and the recovery of downstrea

191、m demands,the price difference of various refined oil products is in the upward channel of recovery.In 2021,entering the post-pandemic era,the supply capacity of the whole refinery in Southeast Asia is declining instead of increasing.It is expected that the market will continue to maintain the Fig.3

192、 Price Difference of Refined Oil Cracking in Southeast Asia in Recent Seven Years Data source:Platts-10.00-5.00 0.00 5.00 10.00 15.00 20.00 25.00 2014-6-30 2015-6-30 2016-6-30 2017-6-30 2018-6-30 2019-6-30 2020-6-30 汽油 柴油 航空煤油 Gasoline Diesel oil Aviation kerosene 2020 Annual Report of Hengyi Petroc

193、hemical Co.,Ltd.35 import trend of refined oil every year,and with the gradual recovery of the pandemic,the import quantity of refined oil will continue to maintain the rebound trend.Meanwhile,with the gradual repair of cracking spread,new market-oriented refineries may see a rebound in profitabilit

194、y.The Brunei Refining and Petrochemical Project of the Company is located in the hinterland of Southeast Asias refined oil demand market,with obvious geographical advantages,as well as raw material procurement advantages,refined oil sales advantages,production cost advantages and tax advantages,and

195、huge market space for product sales.2.PTA business:The supply of raw materials is loose,and the industrial concentration continues to increase In the chemical fiber industry chain naphtha-PX-PTA-POY/FDY/DTY,with the different release of production capacity and the different concentration of the indu

196、stry chain,it will show different characteristics in different years.With the substantial increase of domestic PX production capacity in the global share,the corresponding supply of new PX production capacity is loose.In recent years,the import substitution of domestic PX has continued to accelerate

197、,and the dependence on domestic PX imports has dropped sharply in 2020.On this basis,ACP negotiations all failed in 2020,which led to the obvious transfer of PX industry profits to the middle and lower reaches in the pricing game between PX and PTA plants.In this process,the cost competitive advanta

198、ge brought by the scale advantage of domestic large-capacity PX will gradually squeeze the small and medium-sized production capacity in China,Japan and South Korea,and the proportion of PX production capacity will continue to increase.The trend of PX production capacity has further affected the pro

199、duction capacity structure of the PTA industry and promoted the concentration of the PTA industry to be further higher.As of December 2020,the top five production capacity in the world accounted for 65.2%,and the production capacity continued to concentrate on the leading enterprises.The leading ent

200、erprises expanded at low cost and continued to give full play to their scale advantages.Leading enterprises not only occupy an absolute advantage in production capacity,but also have obvious advantages in production technology,industrial chain supporting and management level.3.Chemical fiber busines

201、s:The terminal demand keeps healthy growth,and leading enterprises will benefit from reshaping the pattern of the chemical fiber industry chain(1)Online sales continue to rise steadily,and the consumption structure is iteratively 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.36 upgraded Judging

202、 from downstream demand,polyester fiber is mainly used in clothing,home textiles and emerging industrial application fields,which are closely related to residents consumption wishes.With the stabilization of pandemic prevention and control in China,the increase of per capita disposable income and th

203、e improvement of consumption level,the strategy of expanding domestic demand and various policies to promote consumption have achieved remarkable efforts.At present,with the application of online live broadcast and big data in the field of terminal consumption,especially in third-and fourth-tier cit

204、ies,counties and townships,the consumption capacity has risen rapidly.Affected by the pandemic,offline contact consumption is hindered,and online live broadcast consumption has sprung up everywhere,which strongly supports terminal consumption and drives the high growth of terminal demand.Online cons

205、umption goes against the trend,effectively promotes consumption replenishment,releases market potential,and creates new ideas for economic recovery and development.According to the data of the National Bureau of Statistics,the national online retail sales in 2020 was RMB11,760.1 billion,an increase

206、of 10.9%over the previous year.Among them,the online retail sales of physical goods reached RMB9,759 billion,an increase of 14.8%,accounting for 24.9%of the total retail sales of consumer goods,an increase of 4.2 percentage points over the previous year.Online consumption achieved rapid growth.Onlin

207、e consumption goes against the trend,which also means that China has entered an important stage of accelerating the upgrading of consumption structure,accelerating the iteration of consumption patterns,and obviously enhancing the role of consumption in stimulating the economy.(2)The export of foreig

208、n trade is growing against the trend,and the demand of the textile and clothing industry is strong In the context of COVID-19 in 2020,Chinas textile industry has steadily promoted the resumption of work and production,benefiting from the recovery of orders at home and abroad,and the production and s

209、upply capacity and the industrial chain operation have returned to normal.In November 2020,the RCEP agreement was signed,which will significantly benefit the textile and clothing industry and further accelerate the transfer of production capacity to Southeast Asia.According to the statistics of the

210、General Administration of Customs,P.R.China,in 2020,the cumulative export of Chinas textile and garment boosted the overall export of national goods trade 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.37 by one percentage point,and the cumulative export of Chinas textile and garment was USD291.

211、22 billion,an increase of 9.5%over the same period of 2019,which boosted the overall export of national goods trade by one percentage point.Among them,textiles have risen for nine consecutive months since April 2020,while clothing has reversed since August 2020 and increased for five consecutive mon

212、ths.(3)Residents consumption has been transformed and upgraded,and the demand for products in the polyester industry chain has remained rigid In recent years,the income level and consumption expenditure of Chinese residents have increased steadily.With the increase of income level,major consumer gro

213、ups have higher requirements for textile and clothing,clothing quality and consumption capacity.After the upgrading of the demand system,the soaring consumption level has greatly increased the demand for polyester differential products.According to the National Bureau of Statistics,the gross nationa

214、l income in 2020 was RMB100,915.1 billion,an increase of 1.9%over the previous year.This would promote the increase of terminal consumption expenditure such as the textile and clothing industry and apparel industry.In addition,there is still a certain gap in per capita fiber sales between China and

215、developed countries,and there is still much room for the growth of chemical fiber or polyester.According to the data of the 20th China Hangzhou Chemical Fiber Forum,in 2020,the per capita fiber consumption in China was 16-17 kg,while that in the United States was 36-37 kg and that in the European Un

216、ion was 25 kg.Polyester is of a growth rate of 5-10%,which is expected to grow for a long time in the future.(4)The integrated layout of the chemical fiber industry chain is formed to enhance the competitiveness of downstream chemical fibers In recent years,private refineries,including the Company,h

217、ave been put into operation one after another.With the release of PX production capacity of private refining and chemical projects,the industry in which the Company is located has changed from single product competition in the past to a new competition pattern of industrial chain integration.Leading

218、 listed companies have gradually expanded relying on the advantages of vertical integration and firmly grasped the new share of future market demand.During the same period,the growth rate of PTA and MEG production capacity continued to accelerate,and PTA and MEG also entered a loose supply pattern.S

219、ince 2017,the growth rate of 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.38 polyester fiber production capacity has steadily declined(data source:CCF Annual Report).With the gradual recovery of the global economy,the recovery of terminal demand and the loose supply of the upstream raw materia

220、l industry chain combined with the decline in the growth rate of polyester production capacity will guide the profit of the industry chain to shift to chemical fiber.(5)The market concentration of polyester industry increases,and the competition pattern is more reasonable After a decade of integrati

221、on of polyester filament industry,from 2011 to the end of 2020,the industry concentration CR6 share rose from 32%to about 66%(data source:CCF Annual Report).According to the announced investment plan,the main new production capacity in the industry in the future will come from CR6.Small and medium-s

222、ized polyester plants lack the ability of technological innovation and will gradually withdraw from the competition in the industry.The market concentration of the polyester industry will be further improved.In the future,with the continuous improvement of leading enterprises own competitiveness,bac

223、kward production capacity in the downward industry will be accelerated,the entry threshold for the industrial chain in which the company is located will be further increased,the concentration of industries in the upper,middle and lower reaches will continue to rise,the competition order in the indus

224、try will continue to improve,and the development environment will become more benign.As one of the leading enterprises,the Company has accelerated the expansion and income increase of downstream chemical fiber business in various ways,taking the lead in enjoying the profit increase brought about by

225、the good prosperity of the industry.It is believed that with the smooth commissioning of the Companys refining and petrochemical projects,the vertical integration layout of the industrial chain has achieved initial results and the overall competitiveness will rise to a new level.(6)The Company will

226、increase the input of informationization and automation,and usher in a further improvement in quality and efficiency in the polyester industry In recent years,leading companies in the industry have been deeply engaged in improving equipment and technological processes and developing better productio

227、n processes.Actively respond to the call of the national green high-tech development,and promote innovative projects with the overall efficiency of the industry through capital investment and talent investment,such as the thorough replacement of wooden pallets by catalytic cycle pallets.At the same

228、time,in recent 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.39 years,leading companies in the industry have carried out drastic reforms in digitalization,accelerated the construction from intelligent manufacturing units and intelligent production lines to intelligent workshops and intelligent

229、plants,guided new formats such as personalized customization,collaborative manufacturing and remote operation and maintenance,and promoted the digital transformation of polyester industry.(ii)The progress of the business plan disclosed in the previous period in the reporting period In 2020,faced wit

230、h the sudden global public health challenge of COVID-19,the economic risk challenge at home and abroad,and the complex environment,the Company forged ahead with its employees,facilitated the smooth operation of the Brunei Refining and Petrochemical Project,a key project of Belt and Road Initiative,c

231、ontinued to maintain high-load production,and improved its competitive advantage.The leading competitive advantage of the PTA business sector has been further improved,the potential has been continuously tapped and transformed,and the profitability of products has maintained the leading level in the

232、 industry.The main business of chemical fiber took high-quality development as the main line,continued to expand production and improve quality,further improved the differential level of product,and greatly increased profitability year-on-year;implemented lean production,upgraded quality and brand,a

233、nd optimized management innovation,with the management quality reaching a new level.1.Maintain a good trend of sustained high growth and actively fulfill cash dividend returns During the reporting period,the Company realized an operating profit of RMB4.526 billion,down about 5.19%from the same perio

234、d of last year,and realized net profit attributable to its parent company of RMB3.072 billion,down 3.7%from the same period of last year.At the end of the reporting period,the total assets of the Company were RMB92.26 billion,an increase of 7.58%over the beginning of the year;the owners equity attri

235、butable to shareholders of listed companies was RMB24.007 billion,an increase of 1.12%over the beginning of the year;net assets per share attributable to shareholders of listed companies were RMB6.52;the asset-liability ratio was 67.17%,which was at a reasonably low level compared with the same indu

236、stry.During the reporting period,the Company implemented the 2019 dividend payment plan,with a total cash dividend of RMB1.137 billion,accounting for 35.51%of the Companys net profit attributable to the parent company in 2019.Moreover,the board of directors of the Company 2020 Annual Report of Hengy

237、i Petrochemical Co.,Ltd.40 reviewed and approved the dividend plan for 2020,and distributed a cash dividend of RMB3.00(including tax)for every 10 shares,with a total cash dividend of RMB1.104 billion,accounting for 35.95%of the net profit attributable to the parent company in 2020.2.The coordination

238、 of production,supply and marketing has been enhanced,and production and sales have increased steadily During the reporting period,the production and sales of the Companys products were booming and the production and sales volume increased steadily.Among them,the production and sales volume of refin

239、ed oil products(Hengyi Brunei,the controlling subsidiary)reached 5.9224 million tons and 5.8381 million tons respectively;the production and sales volume of chemical products were 2,265,800 tons and 2,191,700 tons respectively;the production and sales volume of PTA products(Zhejiang Yisheng,the cont

240、rolling subsidiary)reached 4,850,200 tons and 4,843,200 tons respectively;the production and sales volume of polyester products of the controlling subsidiary were 6.527 million tons and 6.056 million tons respectively.3.The strategic layout of the international industry has achieved initial results,

241、and the Hengyi Brunei Refining and Petrochemical Project makes new performance contributions During the reporting period,affected by the global spread of the COVID-19 pandemic,various regions successively adopted strict closure and isolation measures.The demand for terminal consumption continued to

242、be sluggish,the global crude oil price plummeted,Crack Spreads of oil products freely fell and the downstream petrochemical industry was under production,the inventory was high,the price was upside down,and the global refineries as a whole fell into huge losses.The world saw the continuous appreciat

243、ion of RMB.Hengyi Brunei was facing an all-around extreme Table 3 Output and Sales Volume of the Companys Main Products in 2020 Major products Output(10,000 tons)Sales volume Sales in 2019 Year-on-year increase Refining products 592.24 583.81 54.93 962.83%Chemical products 226.58 219.17 12.88 1,601.

244、63%PTA 485.02 484.32 503.64-3.84%Polyester products 650.27 605.60 559.29 8.28%2020 Annual Report of Hengyi Petrochemical Co.,Ltd.41 pressure test in its first year of operation.In this context,during the reporting period,the Companys Brunei Refining and Petrochemical Project actively coordinated and

245、 organized various anti-pandemic work,maintaining high-load stable operation and stable production management throughout the year.(1)Give full play to the advantages of flexible management strategies and processes to cope with oil price fluctuations In light of the trend change of the difference bet

246、ween light and heavy oil prices,the Company quickly adjusted its crude oil procurement strategy to overcome many difficulties such as long international trade cycle,difficult price judgment,high uncertainty of resource guarantee,etc.The plant quickly adjusted its production and processing mode,which

247、 greatly reduced the crude oil procurement cost.Meanwhile,the changes in the raw oil market were continuously tracked,the production blending formula was calculated and optimized through the whole process simulation,and raw materials with high cost performance were purchased,so as to meet the produc

248、tion demand and effectively reduce the purchase cost of raw materials.Although the Crack Spreads of gasoline,aviation fuel and diesel oil reached the historical freezing point in 2020,Brunei plant has produced a large number of marketable non-standard products based on accurate market judgment,which

249、 can make positive contributions to performance in the future.(2)Take multiple measures to cope with the impact of the pandemic and ensure smooth and optimized operation During the pandemic,in order to solve the shortage of front-line employees,the Company actively organized charter flights to promo

250、te the resumption of work and production.Besides,the Company intensified its local recruitment,and engaged 675 local employees,achieving a localization rate of 40%at the initial stage of Phase I operation.Apart from promoting the joint training program with Chinese colleges and universities,the Comp

251、any,together with local colleges and universities,determined eight specialties for school running.At present,the project has been fully started,which will lay a solid foundation for the stable supplement of local professionals.During the reporting period,the Company actively promoted the linkage bet

252、ween production and marketing,and always put the target of reaching a“safe,stable and optimum operation at full capacity for long on-stream running in the first place.The monitoring model of equipment and 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.42 utilities system has been established,con

253、tinuous technical research has been carried out,a large number of technical transformation and measures projects have been implemented,and various professional and technical management has been continuously consolidated to ensure the stable operation of the whole plant under high load.To sum up,Heng

254、yi Bruneis refined oil,chemical products and other products have been sold smoothly,and good results have been achieved in the international layout and operation of the industry against the trend.During the reporting period,the Company produced a total of 8,188,200 tons of products,including 2,265,8

255、00 tons of chemical products and 5,922,400 tons of refined oil products.The sales revenue of refined oil products and chemical products were RMB14.459 billion and RMB4.286 billion respectively(the data are for external sales),which further promoted the global popularity of Hengyi brand,and the integ

256、ration of vertical industrial chain helped the Company to continuously improve its competitive advantage.With the full-scale resumption of work and production in China,the year 2021 will usher in the all-around recovery in the post-pandemic era.The Companys Brunei Refining and Petrochemical Project

257、boasts great strengths in international operation:(1)With the global recovery,oil prices continue to rebound rapidly,downstream demand recovers,and economic benefits have been greatly improved.Meanwhile,the central banks of major developed economies continue to loosen their currencies,maintaining ze

258、ro or negative interest rate policies,Chinas economy continues to recover,the RMB exchange rate tends to stabilize,and the operating environment for the Brunei Refining and Petrochemical Project improves significantly.(2)China and Brunei are highly supportive of the project and the project enjoys lo

259、ng-term tax incentives and other incentive policies Brunei sees a stable political situation,and the project meets Bruneis 2035 Vision and promotes the economic growth of the Belt and Road Initiative countries;It is not restricted by trade barriers and belongs to the ASEAN Free Trade Area;the import

260、 and export of products are duty-free;The overall tax burden is obviously reduced.Brunei does not levy personal income tax,business tax,payroll tax,production tax and export tax.The project has a local pioneer enterprise certificate and an export enterprise certificate,and can enjoy a long-term ente

261、rprise income tax relief;2020 Annual Report of Hengyi Petrochemical Co.,Ltd.43 The project is in line with the Belt and Road Initiative strategy,and the syndicated loans are of national strategic support.(3)The plant is stable,operates at high load,and the industrial chain is integrated and stable.T

262、he project is closer to the crude oil supply place and Singapores crude oil trade market,boasting convenient crude oil procurement and lower logistics cost;The refined oil produced by the project is sold to Southeast Asia,which has strong demand;Brunei Refining and Petrochemical Project has a short

263、sales radius and low logistics cost;All chemical products are digested downstream of the own industrial chain to realize the integrated operation of the industrial chain.(4)The cost advantage is significant,and the cost of energy transportation is reduced.The project is fully equipped with coal-fire

264、d power generation and self-produced steam,and the cost advantage of utilities is evident;The main production plants,such as Hydrocracking,Reforming and PX units,adopt the latest advanced technology,which has the technical characteristics of low operating cost,high product conversion rate,etc.,thus

265、reducing the production cost of PX;The low-temperature heat reuse technology is adopted,and the waste heat is used for seawater desalination,which reduces the operation cost of seawater desalination and the comprehensive energy consumption index of PX production;Residual oil is treated with the late

266、st flexi-coking process,which can be continuously produced and reduce labor cost;by-product fuel gas reduces fuel cost;compared with the traditional process,closed production of the plant is more environmentally friendly and harmless treatment of residual oil is realized;The liquid phase diesel hydr

267、ogenation technology can meet the new international diesel standard in 2020,and at the same time reduce the unit investment and operation energy consumption.Brunei has a mild climate all year round and no natural disasters.As a rich oil-producing country,Brunei has abundant oil and gas resources,whi

268、ch can provide some crude oil and reduce the logistics cost of crude oil.On the basis of the successful production of Brunei Phase I Project and adhering to the strategic thinking of consolidating and enhancing the core competitiveness of its main business,the 2020 Annual Report of Hengyi Petrochemi

269、cal Co.,Ltd.44 Company reviewed and approved the investment in the construction of Hengyi Brunei Refining&Petrohemical Project Phase II in September 2020.The planning of Hengyi Brunei Refining and Petrochemical Phase II Project mainly includes four parts:Refining,Aromatics,Ethylene and Polyester.The

270、 four related industrial chains will be highly integrated,including 14 million tons/year refining,2 million tons/year para-xylene,2.5 million tons/year PTA downstream,1 million tons/year PET,1.65 million tons/year ethylene and downstream deep processing,as well as supporting storage and transportati

271、on,utilities and corresponding auxiliary facilities.In 2021,the Company will continue to focus on petrochemical industry and fully promote the construction of Brunei Refining&Petrochemical Project Phase II.Brunei PMB Refining and Petrochemical Project is a key link for the Company to realize the int

272、ernationalization of upstream industries.While facilitating the smooth operation of Phase I of the Project,the Company has simultaneously promoted the planning and feasibility study report of Phase II of Brunei Refining and Petrochemical Project,and finalized the main process framework and capacity

273、composition of Phase II of Brunei Refining and Petrochemical Project.The completion of Brunei Project Phase II will help the Company further reduce the production cost of its products,ensure the stability of raw material supply,strengthen the upstream production capacity base and development leading

274、 edge,further enhance the business structure and integrated cooperative operation,optimize the product structure,enhance the overall profitability,build the core circle of the Belt and Road Initiative facing the development of ASEAN,and gradually building the Company into a petrochemical enterprise

275、with leading comprehensive strength in the world.4.PTA has significantly improved quality and efficiency,maintaining the leading profitability in the industry As one of the leading enterprises in the PTA industry,during the reporting period,the Company enhanced the production technology management o

276、f its PTA business and optimized its operation capability.Zhejiang Yisheng,controlled by the Company,realized production and sales of 4.8502 million tons and 4.8432 million tons respectively.Zhejiang Yisheng(including Ningbo Hengyi Trade)achieved a total net profit of RMB1.776 billion.The participat

277、ing Dalian Yisheng and Hainan Yisheng realized net profits of RMB1.092 billion and RMB983 million respectively.Continue to maintain the leading level in the industry.At present,the 6 million tons PTA project of Yisheng New Materials invested and constructed 2020 Annual Report of Hengyi Petrochemical

278、 Co.,Ltd.45 by the Company in cooperation with Rongsheng Petrochemical is progressing as scheduled.The 3 million tons of Line 1#is planned to be completed and put into production in the second quarter of 2021,and Line 2#is expected to be completed and put into production by the end of 2021.At that t

279、ime,the Companys PTA production capacity will reach a higher level.5.Continue to enrich high-end differential products,and continue to improve the profitability of chemical fiber business During the reporting period,the scale of the Companys chemical fiber business continued to grow,the forward-look

280、ing technology research and development layout was smoothly industrialized,and most of the newly increased productive capacity gave priority to advanced manufacturing plants with high added value,high quality and differential production.Haining New Materials 1 million tons of production capacity has

281、 been put into production in 2020 and the first quarter of 2021 consecutively.Jiaxing Yipeng Chemical Fiber Co.,Ltd.s 500,000 tons of differential functional fiber upgrading and transformation project will be completed and officially put into production in June 2020.In 2020,the production and market

282、ing of the Companys polyester products(including filament,staple fiber,and chips)continued to maintain a booming trend,achieving production and sales of 6.5027 and 6.0560 million tons,respectively,with a year-on-year increase of 15.56%and 8.28%.Despite the impact of the epidemic and the decline in t

283、he industrys prosperity,the Companys strategy of balanced and integrated upstream and downstream development and high-end differential products have demonstrated a good competitive advantage in responding to periodic fluctuations of industry.Table 4 As of the disclosure day of this report,the progre

284、ss of the Companys main projects No.Item Investment/acquisition amount(RMB 10,000)Product type Capacity(Ten thousand tons)Project Progress 1 Haining New Materials annual production of 1 million tons of differential environmental protection functional fiber construction project 636,000 POY,FDY,chips

285、100 Put into production on February 18,2021 2 Differential functional fiber 227,220 FDY 50 Put into 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.46 upgrading project of Jiaxing Yipeng Chemical Fiber Co.,Ltd.production on June 04,2020 3 New Type Functional Fiber Project with an Annual Output of

286、 566,000 Tons of Fujian Yijin Chemical Fiber Co.,Ltd.335,000 FDY,staple fiber 56.6 Some devices have been put into production on April 9,2021 4 Annual Production of 500,000 Tons of Multifunctional New Materials Project of Hainan Yisheng Petrochemical Co.,Ltd.83,600 PET flakes 50 Put into production

287、in the third quarter of 2020 5 Haining New Materials annual production capacity of 500,000 tons of new functional fiber technological transformation project 256,500 FDY 50 Under construction 6.New markets are opened up continuously through technological R&D and innovation,supply chain capabilities a

288、re solidified through digital intelligence transformation,organizational structure optimization continues to glow with new energy.The Company devotes itself to improving the capability of independent innovation.The proportion of high-end products is increased continuously by creating industry-leadin

289、g technologies and high-end products during reporting period;the development of customized products is accelerated to meet the requirement of market differentiation and individualization,and the products have earned good reputation in the market for a long time.The quality of the Companys Eticont pr

290、oducts has been further improved,which are widely used in infant clothing,facial masks and other fields,and the added value of the products is much higher than that of conventional products.The flame-retardant segmented products are also gradually enriched,and the final test of regenerated flame-ret

291、ardant polyester has been successfully completed,which has been accepted by more and more customers.At the same time,the anti-bacterial and anti-viral fiber is also rapidly industrialized,and its excellent anti-bacterial and anti-viral properties have been unanimously recognized by customers.During

292、the reporting period,the Company fully implemented intelligent business management,2020 Annual Report of Hengyi Petrochemical Co.,Ltd.47 strengthened supply chain management,improved customer service capabilities,promoted innovative operating models,strengthened personnel training,optimized organiza

293、tional structure,made the level of management and operating efficiency step into new phase.During the reporting period,by the aid of big data,the Company promoted intelligent full-process management with automation,digitization,and cloud computing as the core intelligent manufacturing;improved suppl

294、y chain integration projects,including the development of micro-mall,closed-loop marketing,TMS and warehousing system upgrades,etc.;improved the level of functional application of Hengyi Micro Mall,including price query,quick order placement,market information,intelligent logistics management platfo

295、rm(HTTMS),financial services and other supporting services to optimize the closed-loop marketing system,which effectively improves the operating efficiency of Company,innovates a unique omni-channel logistics management and control system,and builds a tripartite logistics transportation platform to

296、provide enterprises with efficient,collaborative,and real-time logistics transportation services.During the reporting period,the Company focused on shaping a culture of co-creation,sharing and win-win strivers,and vigorously promoted the reform of management institutions.Focusing on the business obj

297、ectives of the enterprise,the Company promoted the reform of the headquarters functions,in a forward-looking manner by establishing a human resource management mechanism that supports the culture of co-creation and sharing of a win-win strivers,and promoted the establishment of a streamlined and eff

298、icient functional headquarters;focusing on promoting the reform of the marketing system,further strengthened the operational capabilities of the marketing system by reforming the production and sales coordination model,leading the industry to continuously explore marketing models and marketing team

299、management innovation;vigorously promoted the integration and optimization of the engineering management system,and effectively played the main role of the factory while exploring and improving the coordination functions of the headquarters.At the same time,the Company exerted itself in introducing

300、high-quality talents,upgraded the organizational structure platform,innovated talent training models,promoted the development and growth of key talents,and adhered to the three-dimensional and multi-source incentive mechanism of value co-creation and benefit sharing to stimulate the vitality of the

301、team.The Company shall comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information Disclosure Guidelines No.18-Listed Companies Engaged in Chemical 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.48 Industry Related Business.Procurement mode of main raw materials Curre

302、ncy Unit:RMB/ton Reasons for major changes in raw material prices from the previous reporting period The purchase price of energy accounts for more than 30%of the total production cost Applicable Not applicable Production technology of main products Major products The stage of production technology

303、Situation of core technical personnel Patented technology Product development advantage Gasoline Mass production Multiplayer Introduction and innovation Advanced equipment technology,large production capacity,low raw material and transportation costs,and high environmental protection level Diesel oi

304、l Mass production Multiplayer Introduction and innovation Advanced equipment technology,large production capacity,low raw material and transportation costs,and high environmental protection level Kerosene Mass production Multiplayer Introduction and innovation Advanced equipment technology,large pro

305、duction capacity,low raw material and transportation costs,and high environmental protection level 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 i

306、n the second half of the year Crude oil Purchasing inquiry 28.93%No 1,786.37 2,740.99 Naphtha Purchasing inquiry 2.13%No 3,166.20 3,088.44 Mixed xylene Purchasing inquiry 1.12%No 3,059.63 3,197.03 PX Purchasing inquiry 22.11%No 4,216.60 3,843.81 MEG Purchasing inquiry 12.88%No 3,418.31 3,250.89 2020

307、 Annual Report of Hengyi Petrochemical Co.,Ltd.49 Major products The stage of production technology Situation of core technical personnel Patented technology Product development advantage Paraxylene Mass production Multiplayer Introduction and innovation Advanced equipment technology,large productio

308、n capacity,low raw material and transportation costs,high product purity and long operation cycle of the unit Benzene Mass production Multiplayer Introduction and innovation Advanced equipment technology,large production capacity,low raw material and transportation costs,high product purity and long

309、 operation cycle of the unit Purified terephthalic acid Mass production Multiplayer Introduction and innovation Large production capacity,low investment,low energy consumption,convenient transportation,and high level of environmental protection Polyester Mass production Multiplayer Introduction and

310、innovation Short process,large production capacity,low consumption of raw materials and utilities,etc.Polyester Mass production Multiplayer Introduction and innovation The low-temperature easy-to-dye cationic polyester is prepared by adding the third and fourth monomers to the polymerization reactio

311、n system,using a special equipment structure,through esterification,pre-condensation,and final polycondensation,which reduces the cost of downstream dyeing and reduces environmental pollution.The melting point is increased using accessory ingredient such as composite stabilizers,to improve the therm

312、al stability of the fused mass,increase the whiteness,and improve the hue and heat resistance 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.50 Major products The stage of production technology Situation of core technical personnel Patented technology Product development advantage Polyester Mass

313、 production Multiplayer Introduction and innovation No matting agent is added during the polymerization process to produce super bright polyester products to meet the needs of different customers with low production costs Polyester Mass production Multiplayer Introduction and innovation A full dull

314、polyester product is produced by adding a matting agent during the polymerization process,which solves the problem of reduced filter cycle caused by the increase of matting agent and reduces energy consumption Polyester Wide range of applications Multiplayer Introduction and innovation The catalyst

315、is uniformly dispersed in the material by optimizing the design of the reactor structure,adding a titanium-based catalyst to replace the antimony catalysis,and produce an environmentally friendly antimony-free polyester product with a high level of environmental protection.Polyester Mass production

316、Multiplayer Introduction and innovation The preparation process of master batch was improved,and the types and proportions of Ag-carrying antibacterial agent,PBT powder mixing,and dispersant were studied,and the optimal ratio of the three was determined.The antibacterial master batch was prepared by

317、 melt blending and extrusion,with outstanding functions Polyester Wide range of applications Multiplayer Introduction and innovation Maximum output,highest conversion rate and lowest energy consumption 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.51 Major products The stage of production techn

318、ology Situation of core technical personnel Patented technology Product development advantage Polyester Wide range of applications Multiplayer Introduction and innovation By tapping the potential of equipment,the goal of increasing production and efficiency is achieved without increasing investment

319、Polyester Wide range of applications Multiplayer Introduction and innovation To increase Eenergy efficiency is increased,to continually introduce energy-saving technologies are introduced continually,and to reduce production costs Polyester Wide range of applications Multiplayer Introduction and inn

320、ovation The filter cycle is extended,and the waste of labor is reduced,and the packaging cost saved,which brings considerable economic benefits to the Company Polyester Wide range of applications Multiplayer Introduction and innovation The fluidity of the polyester melt is improved through the modif

321、ication during the polymerization reaction,for the effect of the polycondensation reaction,the intrinsic viscosity of the product is higher than that of the conventional polyester under the condition of the original polymerization residence time,and the melt processing performance is improved.This t

322、echnology has obtained a utility model patent with patent number of ZL 201120209233.4 Spinning Mass production Multiplayer Introduction and innovation The Spinning is characterized by short process,the large production capacity,the high degree of differentiation,the stable product quality,and the lo

323、w consumption of utilities.Spinning Mass Multiplayer Introduction The POYDTY process route of melt direct 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.52 Major products The stage of production technology Situation of core technical personnel Patented technology Product development advantage pr

324、oduction and innovation spinning is adopted,and the melt is sprayed from the self-designed one-shaped spinneret orifice,and then cooled,oiled,and packaged into a flat profiled POY yarn.POY is then made into flat DTY polyester filament through a texturing process.The polyester filament has a lower bu

325、lk density,lighter weight,and a soft texture feeling.Spinning Mass production Multiplayer Introduction and innovation Using the POYDTY process route of melt direct spinning,the melt is sprayed from the self-designed cross-shaped spinneret orifice,then cooled,oiled,and packaged into a cross-shaped PO

326、Y yarn.POY is made into cross DTY polyester filament through the texturing process.The polyester filament has a low bulk density,light weight,good air permeability,and a soft hand feeling.Spinning Mass production Multiplayer Introduction and innovation Using the melt direct spinning PDY process rout

327、e,the melt is sprayed from the self-designed feng or mi-shaped spinneret orifice,and then cooled,oiled,and packaged to be spun into a Feng-like or mi-like shaped FDY yarn.The polyester filament has low bulk density,light weight,special luster and soft hand feeling.Spinning Mass production Multiplaye

328、r Introduction and innovation The functional hollow polyester fiber is produced by adding functional self-heating masterbatch as the core part of the warm and comfortable composite fiber,which has a dual-effect warmth 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.53 Major products The stage of

329、production technology Situation of core technical personnel Patented technology Product development advantage retention effect.This product has obtained an invention patent,with patent number of ZL201410481816.0 Spinning Wide range of applications Multiplayer Introduction and innovation Using advanc

330、ed equipment and process technology,short process,high degree of automation,low manufacturing cost Spinning Wide range of applications Multiplayer Introduction and innovation Through reasonable evaluation and extension of the spinning blade cycle to improve product quality stability and reduce consu

331、mption and cost.Spinning Wide range of applications Multiplayer Introduction and innovation By installing on-line adding equipment,dynamic and static mixing equipment,oil spray nozzles,winding machines,etc.on the melt direct spinning line,the existing equipment is upgraded and transformed to produce

332、 the differential and high-end products in the polyester melt direct spinning line.The method solves the contradiction between the large-capacity polyester device and the production of small batches of functionally differential fibers with multiple varieties.The Company mainly produces functional mo

333、dified fibers such as colored,flame retardant,antibacterial and full dull.Spinning Wide range of applications Multiplayer Introduction and innovation By applying the Companys own technology to produce flame-retardant polyester,and usage of single-component spinning or composite spinning technology,the single-component or 2020 Annual Report of Hengyi Petrochemical Co.,Ltd.54 Major products The stag