Company Code:600346 Company
Name:Hengli Petrochemical
Hengli Petrochemical Co. Ltd.2024Annual Report
1 / 3522024 Annual Report 1
Letter to Shareholders Partners and Employees
Dear shareholders investors and friends who care about and support Hengli
Petrochemical:
Spring surges with vitality and the fragrance of locust trees fills the city. On this
radiant April day we present to you Hengli Petrochemical’s 2024 milestones as a
testament to our relentless drive extending our deepest gratitude and sharing a vision for
a brighter future.Looking back whether we are immersed in the grand narrative of long history or
focus on the minute details of individual destiny it evokes a deep chill. Amidst the
undercurrents of the changing century geopolitical rivalries get locked in stalemate. The
global economy grows ever more turbulent and unpredictable further intensifying
uncertainties. For enterprises in particular with upstream raw material prices remaining
persistently high and downstream market demand staying sluggish Hengli Group has
forged ahead against the dual pressures of ongoing global trade war and frequent "black
swan" events—wielding "innovation" as its sword to break through barriers and shielding
its growth with "unwavering commitment to craftsmanship" anchoring the direction amid
turbulent sea and emerging as a frontrunner in the fierce competition. In 2024 the
company achieved operating revenue of 236.2 billion yuan net profit attributable to
shareholders of 7.044 billion yuan and net cash flow from operating activities of 22.733
billion yuan.Innovation breaks boundaries redefining industry standards. "Innovation is the
lifeblood of enterprise vitality. It begins with liberating minds shifting perspectives and
breaking free from conventional thinking—proactively embracing transformation. " Hengli
has engraved "creating standards and setting standards" into its genes. In 2024 Hengli
and Dalian University of Technology have jointly established the "Hengli-DUT Research
Institute" to seize the technological commanding heights with the deep integration of
industry academia and research; Hengli Petrochemical Chemical's high-density
polyethylene (HDPE) pipe-grade material 23050 has earned PE100 certification filling the
gap in the domestic high-end pipe market; Hengli Chemical Fiber has achieved mass
1 / 3522024 Annual Report 2
production of ultra-fine fiber 27D/144f with a filament of 9000 meters weighing just
0.18g and a filament of a single spool (7.14kg) stretching from Earth to Moon. Hengli
delivers kilometer-scale value through millimeter-scale precision. Each breakthrough
embodies its steadfast commitment to "Refinement Meticulousness and Perfection".Intelligent & green synergy forges sustainable competitiveness. Intelligence and
greening are the wings of a company's longevity. Kanghui New Materials has been
recognized as the "National Green Factory" and "Liaoning Province Manufacturing
Champion Enterprise" for its outstanding performance in sustainable and intelligent
development; Jiangsu Kanghui won the title of "Jiangsu Province Intelligent Manufacturing
Workshop" with its BOPET intelligent workshop while Hengke Advanced Materials'
"Intelligent Spinning Craftsman" was designated as a provincial labor benchmark turning
intelligent manufacturing from an abstract concept into tangible productivity. Hengli
Chemical Fiber has been honored as Yangtze River Delta Green Development Leader. We
optimize every drop of water and every kilowatt-hour to engineer sustainable solutions
which brings our 'Green-to-Core' commitment to life.With a global vision we are shaping a new industrial benchmark for China. At
Hengli we recognize that only via boundary-breaking thinking and transformative
approaches can we secure enduring leadership. We have broken the "bottleneck"
problem through localized production of HDPE piping materials regained dominance in
global textile markets through mass production of ultra-fine fiber and set a
transformation model for the industry with intelligent and green manufacturing practices.These accomplishments stand as Hengli's firm response to national strategic imperatives
and a solemn accountability to the trust of shareholders.Our founding mission stands unshakable as bedrock as we embark on a resolute
journey through all trials. During corporate development weathering storms is the
enduring norm navigating tempests defines our relentless posture and defying squalls
embodies our unwavering mindset. Reflecting on Hengli Petrochemical's growth trajectory
we have been tempered through trials fortified through adversities innovated through
expansion and ultimately risen as an industry leader through sustained breakthroughs.We remain anchored in manufacturing and rooted in core competencies with national
responsibility engraved in our ethos and fused into our corporate genes. We are
2 / 3522024 Annual Report 3
convinced that only by aligning our purest aspirations with the nation's pulse and
synchronizing our strides with the epoch's rhythm can we forge a centennial foundation
crafting magnificent chapters worthy of both history and future.As the last vestiges of winter recede spring rains herald renewed vitality. Here in
Dalian our strategic heartland favorable currents converge under clear skies. With
propitious winds filling our sails the hour for relentless endeavor is upon us. Sounding the
clarion call of the "Three-Year Decisive Victory Campaign" we forge ahead with ironclad
resolve and innovative dynamism infusing transformative industries with unyielding
momentum while shouldering the mantle of domestic industrial ascendancy.Hengli is willing to stand shoulder-to-shoulder with shareholders through relentless
operational discipline that sustains industrial excellence by channeling strategic
accumulation into breakthrough innovations advancing toward a future marked by more
competitive resilience and sustainable development.Chairman: 范红卫
April 2025
3 / 3522024 Annual Report 4
Important Tips
I. The company's board of directors board of supervisors directors supervisors and senior
managers guarantee that the content of the Annual report is true accurate and complete and
that there are no false records misleading statements or major omissions and assume
individual and joint legal responsibilities.II. All directors of the company attended the board meeting.III. Zhonghui Certified Public Accountants (Special General Partnership) issued a standard
unqualified audit report for the company.IV. Fan Hongwei the person in charge of the company Liu Xuefen the person in charge of
accounting work Zheng Minxia the person in charge of the accounting department (accounting
supervisor) declare that they guarantee the authenticity accuracy and completeness of the
financial report in the annual report.V. Profit distribution plan for the reporting period approved by the board of directors or plan for
capitalization of public reserve funds
The company's profit distribution plan for 2024 is as follows: based on the total share capital on
the equity distribution registration date a cash dividend of 0.45 yuan per share (including tax) will be
distributed to all shareholders.This profit distribution plan has been deliberated and approved at the twenty-sixth meeting of the
ninth board of directors and the seventeenth meeting of the ninth board of supervisors of the
company and needs to be submitted to the company's 2024 annual general meeting of shareholders
for consideration.VI. Disclaimer of Forward-Looking Statements
√适用□不适用
Forward-looking descriptions such as future plans and development strategies involved in this
report do not constitute the company's actual commitment to investors. Investors are requested to
maintain sufficient risk awareness and understand the differences between plans forecasts and
commitments.VII. Whether there is any non-operational occupation of funds by controlling shareholders and other
related parties
No
4 / 3522024 Annual Report 5
VIII. Whether there is any external guarantee provided in violation of the prescribed decision-making
procedures
No
IX. Whether more than half of the directors cannot guarantee the authenticity accuracy and
completeness of the annual report disclosed by the company
No
X. Significant Risk Warning
During the reporting period the company had no particularly significant risks that would have a
substantial impact on production and operation.XI. Others
√适用□不适用
This annual report is prepared in Chinese and English respectively. If there is any discrepancy
between Chinese and English the Chinese version shall prevail.
5 / 3522024 Annual Report 6
Content
Chapter 1 Definitions ................................7
Chapter 2 Company Profile and Key Financial Indica.. 11
Chapter 3 Management Discussion and Analysis ....... 19
Chapter 4 orporate Governance ...................... 57
Chapter 5 Environmental and Social Responsibility .. 78
Chapter 6 Important Events ......................... 99
Chapter 7 Shareholding Changes and Shareholder Inf..108
Chapter 8 Information of Preferred Shares ......... 119
Chapter 9 Information of Bonds .....................120
Chapter 10 Financial Reports ...................... 127
Financial statements signed and sealed by the legal representative person
in charge of accounting and person in charge of the accounting
organization (accounting supervisor).Reference file directory Original audit report sealed by the accounting firm and signed and sealed
by a certified public accountant.Original copies of all company documents and announcements
publicly disclosed during the reporting period.
6 / 3522024 Annual Report 7
Chapter 1 Definitions
Interpretation
In this report the terms listed below are defined as follows unless the context otherwise implies:
Definitions of Frequently-Used Terms
Reporting Period Refer to From 1/1/2024 to 31/12/2024
Company the Company or
Hengli Petrochemical Refer to Hengli Petrochemical Co. Ltd.CSRC Refer to China Securities Regulatory Commission
SSE Refer to Shanghai Stock Exchange
《Company Law》 Refer to 《Company Law of the People’s Republic of China》
《Securities Law》 Refer to 《Securities Law of the People’s Republic of China》《Hengli Petrochemical Co. Ltd. Articles of《Articles of Association》 Refer toAssociation》
Hengli Group Refer to Hengli Group Co. Ltd. controlling shareholder of thelisted company
Hailaide International Investment Ltd. person
Hailaide Refer to acting-inconcert with controlling shareholder of the
listed company
Tak Shing Li International Holdings Ltd. person
Tak Shing Li Refer to acting-inconcert with controlling shareholder of the
listed company
Jiangsu Hegao Investment Co. Ltd. person
Hegao Investment Refer to acting-inconcert with controlling shareholder of the
listed company
Hengneng Investment (Dalian) Co. Ltd. person
Hengneng Investment Refer to acting-inconcert with controlling shareholder of the
listed company
Hengfeng Investment (Dalian) Co. Ltd. person
Hengfeng Investment Refer to acting-inconcert with controlling shareholder of the
listed company
Hengli Chemical Fiber Refer to Jiangsu Hengli Chemical Fiber Co. Ltd. subsidiary tothe listed company
Suzhou Susheng Thermal Power Co. Ltd. subsidiary
Susheng Thermal Power Refer to to the Hengli Chemical Fiber sub-subsidiary to the
listed company
Jiangsu Hengke Advanced Materials Co. Ltd.Hengke Advanced Materials Refer to subsidiary to the Hengli Chemical Fiber sub-subsidiary
to the listed company
Jiangsu Xuanda Refer to Jiangsu Xuanda Polymer Materials Co. Ltd. subsidiaryto the Hengke Advanced Materials
Jiangsu Deli Chemical Fiber Co. Ltd. subsidiary to the
Deli Chemical Fiber Refer to Hengli Chemical Fiber sub-subsidiary to the listed
company
Kanghui New Material Refer to Kanghui New Material Technology Co. Ltd. subsidiaryto the listed company
Kanghui Dalian New Material Technology Co. Ltd
Kanghui Dalian New Material Refer to subsidiary to the Kanghui New Material
sub-subsidiary to the listed company
Hengli Petrochemical Chemical Refer to Hengli Petrochemical (Dalian) Chemical Co. Ltd.subsidiary to the listed company
7 / 3522024 Annual Report 8
Hengli Investment Refer to Hengli Investment (Dalian) Co. Ltd. subsidiary to thelisted company
Hengli Petrochemical (Dalian) Co. Ltd. subsidiary to
Hengli Petrochemical (Dalian) Refer to the Hengneng Investment sub-subsidiary to the listed
company
Hengli Petrochemical (Huizhou) Co. Ltd. subsidiary to
Hengli Petrochemical (Huizhou) Refer to the Hengneng Investment sub-subsidiary to the listed
company
Hengli Petrochemical Refining Refer to Hengli Petrochemical (Dalian) Refining Co. Ltd.subsidiary to the listed company
Hengli Petrochemical (Dalian) New Material
Hengli Petrochemical (Dalian) Refer to Technology Co. Ltd. subsidiary to the HengliNew Material Petrochemical Chemical sub-subsidiary to the listed
company
Crude oil is petroleum directly exploited from an oil
Crude Oil Refer to well without being processed and is a dark-brown ordark-green viscous liquid or semisolid flammable
substance that is composed of various hydrocarbons.A hydrocarbon containing a benzene ring structure in
its molecule。Aromatic hydrocarbons mainly includingAromatic Hydrocarbon Refer to benzene methylbenzene xylene etc. are one of the
most important basic raw materials for the
production of petrochemicals。
A compound consisting of two carbon atoms and four
hydrogen atoms. It is the basic chemical raw material
of synthetic fiber synthetic rubber synthetic plastic-
Ethylene Refer to (polyethylene and polyvinyl chloride) synthetic
ethanol (alcohol) and also used in manufacturing
chloroethylene styrene ethylene oxide acetic acid
acetaldehyde ethanol and explosives etc.A thermoplastic resin obtained by polymerization of
Ethylene. Polyethylene is odorless non-toxic feels
Polyethylene (PE) Refer to like wax has excellent low temperature resistance
good chemical stability and is resistant to most acids
and alkalis.A semi-crystalline synthetic resin material with strong
POLYPROPYLENE (PP) Refer to acid and alkali resistance excellent electricalinsulation performance harder and higher melting
point than PE.An organic compound usually a colorless aromatic
Styrene Refer to liquid used primarily in the production of plastics
resins and rubber.An organic compound a colorless gas with a special
Butadiene (BD) Refer to smell the main raw material for the production of
synthetic rubber.A kind of Aromatic Hydrocarbon a colorless
PARAXYLENE (PX) Refer to transparent liquid is one of the raw materials for theproduction of purified terephthalic acid (PTA) which
is used to produce plastics Polyester Fiber and films.PURIFIED TEREPHTHALIC ACID It is white crystal or powder at normal temperature
(PTA) Refer to non-toxic flammable if mixed with air within acertain limit it will burn when exposed to fire.
8 / 3522024 Annual Report 9
Colorless odorless sweet viscous liquid mainly used
METHYLENE GLYCOL (MEG OR Refer to in the production of Polyester Fiber antifreezeEG) unsaturated polyester resin lubricants plasticizers
non-ionic surfactants and explosives.Colorless oily liquid flammable miscible with water.
14-Butanediol (BDO) Refer to Soluble in methanol ethanol acetone slightly soluble
in ether.Organic compound a colorless liquid with a pungent
Acetic Acid Refer to odor. It is the raw material for the manufacture of
rayon film aspirin etc.A transparent liquid with a slight fragrance at normal
temperature. It is safe convenient less polluting and
DMC dimethyl carbonate Refer to easy to transport in production. It is also widely used
in pesticides medicines spices fuel additives
solvents and the electronics industry.Polyethylene terephthalate (referred to as polyester)
is a fiber-forming high polymer prepared from PTA
and MEG as raw materials through transesterification
Polyester Polyester Chip or PET Refer to or esterification and polycondensation reactions.Fiber-grade polyester chips are used to make
polyester staple fiber and Polyester Filament Yarn
(PFY) and film-grade chips are used to make various
film products.Polybutylene terephthalate-adipate a
petrochemical-based biodegradable plastic has
PBAT Refer to excellent biodegradability. It is very active in the
research of biodegradable plastics and one of the best
degradable materials in the market.Polybutylene succinate polymerized from succinic
acid and 1 4-butanediol (BDO) has good thermal
performance and mechanical processing
PBS Refer to performance and is easily destroyed by variousmicroorganisms in nature or animals and plants.Enzyme decomposes metabolizes and finally
decomposes into carbon dioxide and water which is a
typical fully biodegradable material.Synthetic fiber obtained by spinning polyester
obtained by polycondensation of organic dibasic acid
Polyester Fiber Refer to and dibasic alcohol. Industrialized mass-producedPolyester Fiber is made of polyethylene terephthalate
and the trade name in China is polyester. It is the
largest variety of synthetic fibers at present.Also known as polytetramethylene terephthalate it is
a condensation polymer of terephthalic acid and 1
Polybutylene Terephthalate Refer to 4-butanediol. It can be obtained by polycondensation(PBT) PBT through transesterification or direct esterification.Together PBT and PET are known as thermoplastic
polyesters.Biaxially-Oriented Polyethylene Terephthalate
Biaxially-Oriented Polyethylene (BOPET) has the characteristics of high strength good
Terephthalate (BOPET) BOPET Refer to rigidity transparency high gloss excellent wearresistance folding resistance pinhole resistance and
tear resistance etc.; heat shrinkage is extremely small
9 / 3522024 Annual Report 10
and has good antistatic properties.Denier (D) Refer to A fiber of 9 000 meters in length weighs 1 gram and iscalled 1 Denier (D).Polyester Filament Yarn (PFY) Refer to Filament with a length of more than one kilometerthe filament is wound into a ball.PFY for Civil Use Textile Yarn Refer to Polyester Filament Yarn (PFY) for apparel or hometextiles.PFY for Industrial Use Industrial Refer to It is a polyester long fiber with high strength highYarn modulus and large denier used in industrial fields.Through chemical modification or physical
deformation mainly to improve the wearing
Differential Fiber Refer to performance there are great innovations intechnology or performance or new fiber varieties
with certain characteristics that are different from
conventional varieties.Polyester pre-oriented yarn full name PRE-ORIENTED
YARN or PARTIALLY ORIENTED YARN is an
POY Refer to incompletely drawn Polyester Filament Yarn (PFY)obtained by high-speed spinning with an orientation
degree between the unoriented yarn and the drawn
yarn.Stretched textured yarn also known as polyester
stretched yarn full name DRAW TEXTURED YARN is
DTY Refer to made of POY as raw yarn stretched and false twisted
and often has a certain degree of elasticity and
shrinkage.Full drawn yarn also known as polyester drawn yarn
full name FULL DRAWN YARN is a synthetic fiber
FDY Refer to filament further prepared by spinning and drawing
process. The fiber has been fully drawn and can be
directly used for textile processing.
10 / 3522024 Annual Report 11
Chapter 2 Company Profile and Key Financial Indicators
I. Company Information
Chinese Name of the Company Hengli Petrochemical Co. Ltd.Abbreviation of Chinese Name 恒力石化
Foreign Name of the Company HENGLI PETROCHEMICAL CO. LTD.Abbreviation of Foreign Name HLSH
Legal representative of the company Fan Hongwei
II. Contacts and contact information
Secretary to the Board Securities Affairs Representative
Name Li Feng Wang Shan Duan Mengyuan
Floor 31 Building B Victoria Plaza No. 52 Floor 31 Building B Victoria Plaza No. 52
Contact Gangxing Road Renmin Road Street Gangxing Road Renmin Road Street
Address Zhongshan District Dalian City Liaoning Zhongshan District Dalian City Liaoning
Province Province
Telephone 0411-39865111 0411-39865111
fax 0411-39901222 0411-39901222
E-mail lifeng@hengli.com wangshan@hengli.comduanmengyuan@hengli.com
III. Basic information
OSBL Project-Public Office Building No. 298 Changsong
Company registered address Road Lingang Industrial Zone Changxing Island Dalian
City Liaoning Province
When the company was established the place of
registration address was: No. 1 Zhoushuizi Square
Ganjingzi District Dalian; On June 8 2009 the place of
Historical changes in the company's registration was changed to: No. 18 Yinghui Road
registered address Ganjingzi District Dalian; On May 27 2016 the place of
registration was changed to: OSBL Project-Public Office
Building No. 298 Changsong Road Lingang Industrial
Zone Changxing Island Dalian City Liaoning Province
Floor 31 Building B Victoria Plaza No. 52 Gangxing
Company office address Road Renmin Road Street Zhongshan District Dalian
City Liaoning Province
Postal code of the Company's business
address 116001
Company website https://www.hengli.com/invest/hlsh
E-mail hlzq@hengli.com
IV. Information disclosure and location
Media name and website of the Company’s China Securities Journal Shanghai Securities News
annual report disclosure Securities Times Securities Daily
Website of the stock exchange where the
company discloses the annual report www.sse.com.cn
The place where the Company's annual Office of the Company's board of directors
11 / 3522024 Annual Report 12
report is ready for inspection
V. Company Stock Profile
Company Stock Profile
Stock category Stock exchange Stock name Stock code Stock abbreviationbefore change
A share Shanghai Stock HengliExchange Petrochemical 600346 Hengli Stock
VI. Other relevant information
Name Zhonghui Certified Public Accountants (SpecialGeneral Partnership)
Accounting firm engaged by the Room 601 Building A Hualian Times Building
Company (Domestic) Office address No. 8 Xinye Road Jianggan District Hangzhou
Name of signing
accountant Han Jian Fang Sai
VII. Key accounting data and financial indicators in the past three years
(I) Key accounting data
Unit: ten-thousand-yuan Currency: RMB
Increase or
decrease
in this
period
Key Accounting Data 2024 2023 compared 2022
with the
same
period last
year (%)
Revenue from operations 23627327.65 23479067.24 0.63 22232358.40
Net profit attributable to
shareholders of listed company 704356.82 690460.39 2.01 231830.32
Net profit attributable to
shareholders of listed company
after deduction of non-recurring 520903.24 599723.27 -13.14 104528.51
gains and losses
Net cash flows from operating
activities 2273256.53 2353579.01 -3.41 2595397.08
Increase or
decrease
at the end
of this
period
Key Accounting Data End of 2024 End of 2023 compared End of 2022
with the
end of the
previousyear (%）
12 / 3522024 Annual Report 13
Net assets attributable to
shareholders of listed company 6339917.72 5999240.10 5.68 5286254.36
Total assets 27308286.99 26059902.09 4.79 24143047.46
(II) Key Financial Indicators
Increase or
decrease in this
Key Accounting Data 2024 2023 period compared 2022
with the same
period last year (%)
Basic earnings per share
(Yuan/Share) 1.00 0.98 2.04 0.33
Diluted earnings per share
(Yuan/Share) 1.00 0.98 2.04 0.33
Basic earnings per share after
deducting non-recurring gains 0.74 0.85 -12.94 0.15
and losses (Yuan/Share)
Weighted average return on 11.48 12.24 A decrease of 0.76equity (%) percentage points 4.30
Weighted average return on
equity after deducting A decrease of 2.14
non-recurring gains and losses 8.49 10.63 percentage points 1.94
(%)
Note of the key accounting data and financial indicators of the company in the prior three years at the
end of the reporting period
□适用√不适用
VIII. Differences in accounting data under domestic and overseas accounting standards
(I) Differences between net profit and net assets attributable to shareholders of listed company in
financial reports disclosed in accordance with International Accounting Standards and Chinese
accounting standards
□适用√不适用
(II) Differences between Net profit and net assets attributable to shareholders of listed company in
financial reports disclosed in accordance with Overseas Accounting Standards and Chinese
Accounting standards
□适用√不适用
(III) Note on differences in accounting standards between domestic and overseas:
□适用√不适用
IX. Main financial data by quarter in 2024
Unit: ten-thousand-yuan Currency: RMB
First Quarter Second Third Quarter Fourth Quarter
13 / 3522024 Annual Report 14
(January-March) Quarter (July-September) (October-December)
(April-June)
Revenue from
operations 5839049.81 5414804.33 6522515.16 5850958.35
Net profit attributable
to shareholders of 213936.87 187834.94 108690.25 193894.76
listed company
Net profit attributable
to shareholders of
listed company after
deducting 181886.72 172309.31 108466.01 58241.20
non-recurring gains and
losses
Net cash flows from
operating activities 787674.21 465550.25 758475.02 261557.05
Explanation of the difference between quarterly data and disclosed periodic report data
□适用√不适用
X. Non-recurring gains and loss items and amount
√适用□不适用
Unit: yuan Currency: RMB
Item of
non-recurring gains Amount in 2024 Notes (ifapplicable) Amount in 2023 Amount in 2022and losses
Gain or loss on
disposal of
non-current assets
Including the 1912150.11 -4564909.89 -8794093.17
write-off portion of
the provision for
asset impairment
Government
subsidies included in
the current profit or
loss except for
government
subsidies that are
closely related to the
company's normal
business operations 1775850371.26 638569056.98 1594250334.30
comply with national
policies and
regulations and are
continuously
enjoyed in
accordance with
certain standards or
quantities
Except for the 279690101.01 431893116.94 -46001895.50
14 / 3522024 Annual Report 15
effective hedging
business related to
the Company's
normal business
operations gains
and losses on fair
value changes arising
from non-financial
enterprises holding
financial assets and
financial liabilities as
well as gains and
losses on disposal of
financial assets and
financial liabilities
Fund occupation
fees charged to
non-financial
enterprises included
in the current profit
or loss
Profit or loss of
entrusting others to
invest or manage
assets
Profit or loss from
external entrusted
loans
Provision for
impairment arising
from force majeure
such as natural
disasters
Reversal of
impairment
provision for
receivables that have
been individually
tested for
impairment
The investment cost
of the enterprise's
acquisition of
subsidiaries
associates and joint
ventures is less than
the return generated 79415493.16
by the fair value of
the investee's
identifiable net
assets when the
investment is made.Net profit of
15 / 3522024 Annual Report 16
subsidiaries for the
period from
beginning of the year
to date of acquisition
by business
combination under
common control
Non-monetary
assets exchange
profit or loss
Profit or loss of debt
restructuring
One-time expenses
incurred by
enterprises due to
the discontinuation
of related business
activities such as the
expenditure for
resettling employees
One-time impact on
current profit or loss
due to adjustments
in tax accounting
and other laws and
regulations
Share-based
payment expenses
recognized in one
time due to
cancellation or
modification of
equity incentive
plans
For cash-settled
share-based
payments after the
vesting date the
profit or loss arising
from the change in
the fair value of
employee
compensation
payable
Profit or loss arising
from changes in fair
value of investment
real estate
subsequently
measured using the
fair value model
Gains from
transactions with
16 / 3522024 Annual Report 17
unfair transaction
prices
Profit or loss arising
from contingencies
unrelated to the
company's normal
business operations
Income from custody
fees obtained from
entrusted operation
Other non-operating
income and
expenses other than 270908669.80 -25075119.31 10695487.35
the above items
Other profit or loss
items that meet the
definition of 2517138.63 7339987.53 3692791.90
non-recurring profit
or loss
Less: Income tax
impact 496342519.52 140790996.05 360240063.26
Impact amount of
minority
shareholders' equity 42.95
(after tax)
total 1834535868.34 907371136.20 1273018054.78
If the company recognizes items not listed in the "Explanatory Announcement No. 1 on Information
Disclosure by Companies that Offer Securities to the Public - Non-recurring Gains or Losses" as
non-recurring gains or losses with significant amounts and defines the non-recurring gains or losses
listed in the "Explanatory Announcement No. 1 on Information Disclosure by Companies that Offer
Securities to the Public - Non-recurring Gains or Losses" as recurring gains or losses the reasons should
be explained.□适用√不适用
XI. Items measured at fair value
√适用□不适用
Unit: ten-thousand-yuan Currency: RMB
Beginning Changes in the Amount of impactItem balance Closing balance period on profit for thecurrent period
Debt instruments
investments 13126.55 10582.56 -2543.99 -
Equity instrument
investments 8102.24 7732.43 -369.81 0.29
Derivative financial
assets 4865.22 24523.04 19657.82 32500.03
Wealth
management
products and 3789.00 - -3789.00 -
structured deposits
17 / 3522024 Annual Report 18
Receivable
financing 417004.76 662866.38 245861.62 -
Derivative financial
liabilities 19032.43 8809.22 -10223.21 -
Borrowings of
precious metals - 41569.50 41569.50 -9314.15
total 465920.20 756083.13 290162.93 23186.17
XII. Others
□适用√不适用
18 / 3522024 Annual Report 19
Chapter 3 Management Discussion and Analysis
I. Discussion and Analysis of Business Performance
(I) Macroeconomic Overview
In 2024 the international political landscape underwent profound transformations with
escalating geopolitical conflicts and a rising trend of unilateralism and protectionism. Global industrial
and supply chains faced restructuring pressures and the pace of worldwide economic recovery slowed
significantly. Against this backdrop China's economic development encountered increasingly complex
and severe external challenges including heightened volatility in international markets shrinking
external demand and domestic structural contradictions such as insufficient effective demand
overcapacity in certain industries and growing operational pressures of enterprises.However the supporting conditions and basic trends of my country's long-term positive economic
development have not changed and the characteristics of a stable economic foundation many
advantages and great potential are still. my country adheres to the general tone of work of seeking
progress while maintaining stability fully accurately and comprehensively implements the new
development concept takes supply-side structural reform as the main line and implements more
precise and effective macroeconomic control policies.Nevertheless the fundamental drivers and long-term positive trajectory of China's economy
remained unchanged with its solid foundation multiple advantages and vast potential still prominent.Adhering to the general principle of seeking progress while maintaining stability China fully accurately
and comprehensively implemented the new development philosophy focusing on supply-side
structural reform as the main task and adopting more targeted and effective macroeconomic policies.Through the continued advancement of the innovation-driven development strategy the
accelerated construction of a modern industrial system and the full unleashing of domestic demand
potential a virtuous cycle of mutual reinforcement between consumption and investment has been
formed. Notably under the strong impetus of the CPC Central Committee's comprehensive
incremental policies market sentiment improved significantly development momentum strengthened
steadily and the national economy achieved both effective qualitative enhancement and reasonable
quantitative growth.In 2024 China's GDP surpassed the historic milestone of 134.9 trillion yuan successfully meeting
the 5% growth target. This hard-won achievement injected much-needed certainty into the uncertain
global economy fully demonstrating the remarkable resilience and vitality of China's economy and
vividly illustrating the superiority of the socialist system with Chinese characteristics.(II) Industry Overview
Back to the industry as a vital pillar of the national economy the petrochemical sector has
demonstrated remarkable resilience while navigating numerous challenges amid a complex and volatile
economic landscape. In 2024 under the strong leadership of the CPC Central Committee and the State
Council the industry adhered to the principle of "seeking progress while maintaining stability"
balanced development and security and achieved new breakthroughs while maintaining overall
economic stability.According to the latest data from the National Bureau of Statistics the petrochemical industry
generated operating revenue of 16.28 trillion yuan in 2024 representing a year-on-year increase of
2.1%; total profits reached 789.71 billion yuan down 8.8% year-on-year; and total import-export
volume stood at 948.81 billion US dollars a decrease of 2.4% year-on-year.Affected by factors such as intensified international geopolitical conflicts fluctuations in the global
energy market and insufficient market demand for some products coupled with the industry's
excessively fast production capacity growth prominent structural contradictions and intensified
"involution" competition the prices of some petrochemical products have continued to be under
downward pressure since 2024 resulting in a significant impact on the benefits of enterprises and the
entire industry and a significant decline in profits. But at the same time the industry actively promotes
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transformation and upgrading accelerates technological innovation and green development and
accumulates new momentum for high-quality development.The industry faced significant headwinds from intensified geopolitical conflicts volatility in global
energy markets and insufficient demand for certain products compounded by excessive capacity
growth prominent structural contradictions and intensified "involution-style" competition. These
factors exerted sustained downward pressure on petrochemical product prices throughout 2024
substantially impacting corporate and industry-wide profitability with noticeable declines in profits.Despite these challenges the industry has been actively promoting transformation and upgrading
accelerating technological innovation and green development to accumulate new momentum for
high-quality growth.By sector analysis the oil and gas segment demonstrated robust performance with operating
revenue of 1.49 trillion yuan (up 1.5% year-on-year) and profits of 336.08 billion yuan (up 12.4%
year-on-year) showcasing strong risk resilience. The chemical sector reported operating revenue of
9.76 trillion yuan (up 4.6% year-on-year) but saw profits decline by 6.4% year-on-year to 454.44 billion
yuan due to rising costs and weak demand indicating certain operational pressures of the industry.Moving forward the petrochemical industry needs to further optimize its industrial structure
enhance high-end green and intelligent development and strengthen core competitiveness to
navigate the complex and ever-changing market environment.(III) Analysis of the Aromatic-PTA-Polyester Industrial Chain
1. Cost factors: Stable-to-declining crude oil prices and continued coal price reductions
effectively lowered company costs
From the cost side crude oil prices have and coal prices have fallen significantly. In 2024 crude
oil prices will fluctuate widely with a high first and a low later. The annual average price of Brent crude
oil for the whole year is US$80 per barrel a year-on-year decrease of 2.8%; the average price of WTI
crude oil is US$76 per barrel a year-on-year decrease of 2.3%.On the cost side crude oil prices moderated while coal prices declined significantly. In 2024 crude
oil prices followed a high-then-low trajectory with wide fluctuations throughout the year. The annual
average price of Brent crude oil stood at $80 per barrel reflecting a 2.8% year-on-year decrease; while
the annual average price of WTI crude oil was recorded at $76 per barrel marking a 2.3% year-on-year
decline.In 2024 China's total coal supply continued its growth trajectory with imported coal volumes
registering a significant year-on-year increase. Throughout the year the coal market remained in a
supply-demand surplus characterized by persistently high inventory levels and fluctuating downward
price trends.
20 / 3522024 Annual Report 21
Data source: Wind
2.Demand-Side Factors: Steady Growth in Textile Demand Benefits the Aromatic-PTA-Polyester
Industrial Chain
China's textile and apparel industry showed steady recovery with rapid growth in demand for
civilian-use fibers.From the production side from January to December 2024 the industrial added value of China's
textile industry above designated size increased by 5.1% year-on-year up 5.7 percentage points from
the same period in 2023 indicating accelerated production growth.From the consumption side supported by stabilizing household income recovering consumer
confidence and the gradual effects of national consumption stimulus policies domestic textile and
apparel sales maintained stable growth. Retail sales of clothing footwear hats and knitwear above
designated size rose by 0.3% year-on-year in 2024.From the investment side Textile enterprises steadily expanded investments in high-end
intelligent and green transformation. Fixed-asset investment in the textile sector grew by 15.6%
year-on-year in 2024.From the enterprise side profitability continued to improve with revenue of textile enterprises
above designated size increasing by 3.6% year-on-year and total profits rising by 3.4% year-on-year in
2024.
Looking ahead to 2025 home textile demand is expected to recover further supported by
stabilizing real estate markets and strong consumption stimulus policies.
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Data source: Wind
3. Product Prices Show Complex Divergence Trends
The "Aromatic-PTA-Polyester Fiber" industrial chain benefited to varying degrees from steady
growth in downstream textile demand. However individual product performance remained influenced
by their respective supply-demand dynamics resulting in complex divergence trends.From the perspective of prodct price trends the overall industrial chain exhibited a "high first low
later" pattern:
In the first half of the year with limited crude oil price volatility and relatively stable demand
upstream products like PX maintained steady profit margins. Among aromatics benzene and styrene
prices rose significantly year-on-year with benzene prices approaching five-year peaks due to
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tightening supply and crude cost support. Downstream products polyester filament (POY/FDY/DTY) saw
rapid margin recovery supported by rebounding end-user demand and PX cost dynamics.However in the second half of the year weakening cost support from declining global crude
prices coupled with sluggish domestic demand led to noticeable corrections in PX and PTA prices.Polyester filament prices entered a volatile downtrend pressured by softening demand and falling
crude costs.Data source: Wind
(IV) Overview of the Olefin Chemical Industry Chain
Polyolefin products are expected to experience marginal improvement and recovery driven by
policy stimulus. In 2024 polyolefin apparent consumption maintained growth momentum but
end-user demand showed structural divergence.In traditional sectors demand for basic-grade products remained weak in real estate and
infrastructure—traditional pillar industries undergoing structural adjustments—leading to downward
price pressure. In manufacturing sectors automotive and home appliance industries sustained
23 / 3522024 Annual Report 24
relatively stable polyolefin demand though intensified competition and product homogenization
highlighted the need for high-end differentiated upgrades.From the persepective of costs polyolefin industry profitability improved year-on-year benefiting
from declining coal and crude oil prices. With the gradual effects of "property market stabilization"
policies and the implementation of consumption stimulus measures (e.g. "home appliance
replacement programs") end-user demand is expected to rebound marginally supporting upstream
chemical price and margin recovery.(V) Corporate Operations Overview
In recent years our company has strategically aligned its innovation chain with national industrial
transformation policies while deploying industrial chains around this innovation framework with a
dual focus on "supply chain reinforcement" and "R&D innovation".Building upon our industry-leading "integrated oil-coal-chemicals mega platform" we have
accelerated the development of high-end fine chemical clusters through precision park construction
significantly enhanced industrial support capabilities for premium chemical raw materials and
strengthened the foundational role of upstream "mega chemical platform" operations.Our company has proactively capitalized on emerging opportunities in new consumption trends
new energy sectors and intelligent manufacturing convergence. Breakthroughs in key material sector
have been made where our focused development of strategic product portolios includes PBS/PBAT
biodegradable materials functional polyester materials high-performance resin materials premium
fiber materials new energy materials and etc. Centered on our Dalian Changxing Island industrial base
we are constructing an integrated fine chemical and new materials ecosystem encompassing R&D
production and application.Through vertical supply chain integration and strengthened technological innovation we are
evolving into a globally competitive platform-based leader across the entire chemical new materials
value chain driving sustainable high-quality industry advancement.
2024 marked a pivotal year for achieving the objectives of China's 14th Five-Year Plan and
advancing toward high-quality development. Amid complex and challenging domestic and external
economic conditions under the strategic guidance of the Board of Directors the company adhered to
the principle of "seeking progress while maintaining stability" consolidated traditional strengths while
cultivating new growth drivers accelerated the development of new quality productive forces and
effectively balanced safety environmental protection production operations as well as project
development.These efforts culminated in the successful attainment of annual operational targets and key
development milestones with comprehensive progress across all business fronts. In 2024 the
company has achieved an Operating Revenue of RMB 236.273 billion (+0.63% year-on-year) and Net
Profit Attributable to Shareholders of RMB 7.044 billion (+2.01% year-on-year).
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During the reporting period the company's key work is as follows:
1. We will implement cost reduction and efficiency improvement strengthen the potential of
the entire industry chain and constantly consolidate the advantage of cost moat.As a "new productivity" in the domestic refining and chemical industry the core advantage of
private large-scale refining and chemical industry lies mainly in the cost leadership of super-large
refinery units and the product management of "oil for oil olefin for olefin and aromatic for aromatic".Building upon these achievements the company has established itself as an industry benchmark by
pursuing operational excellence and continuously reinforcing its core competitive advantages through
a cost moat strategy. Key initiatives include sustained cost optimization through internal efficiency
improvements and expense reduction and accelerated endogenous growth via high-value-added
technical upgrades and premium project development. These measures have served as critical drivers
behind Hengli Petrochemical's steady expansion in both operational scale and profitability over the
past year.As the earliest "private large-scale refining and chemical" enterprise in China to put into
production the scale of super-large plants the synergy of integrated layout and the aggregation of
upstream and downstream production capacity have created a synergistic advantage which is the
main support for Hengli Petrochemical's "cost moat". Hengli Petrochemical was the first in China to
implement the concept of "component refining and molecular refining" selecting international
advanced technical standards adopting world-leading and maturely applied process packages and
using the best professional green environmental protection sewage treatment technology in the world.The equipment selection requirements are significantly higher than the level of refineries in the same
period and the energy and material consumption green environmental protection intrinsic safety
and long-term operation of the plant are effectively guaranteed.During the reporting period the company made full use of its operational advantages of "quality
cost rapid response and maximizing profits" as well as its flexible efficient and flexible mechanism
characteristics to actively adapt to market conditions and quickly respond to market changes. The
company strengthened resource planning optimized production and sales coordination and timely
combined with fluctuations in raw material prices and changes in market demand to flexibly adjust raw
materials equipment and product structures giving priority to increasing production of high-benefit
products achieving "oil when oil is suitable olefin when olefin is suitable aromatic when aromatic is
suitable and chemical when chemical is suitable". The company made every effort to ensure efficient
collaborative operation of major industrial parks in the refining petrochemical chemical and new
material industries maintain a balance between production and sales smooth operation and ensure
the company's high-quality endogenous growth with benefits.From the perspective of integrated production capacity layout the listed company has a unique
"oil coal chemical" deep integration platform in the industry. For the first time in the industry the
four major production capacity clusters of 20 million tons of refining 5 million tons of coal chemical
1.5 million tons of ethylene and 12 million tons of PTA are arranged in the same industrial park. Various
large-scale oil coal and chemical plants are coupled through pipeline integration in the park to achieve
upstream and downstream connectivity significantly optimizing the redundant transportation storage
and cooling processes saving a lot of intermediate operating costs and logistics transportation costs. At
the same time the company has built the largest domestic coal-to-hydrogen plant in the park which
can supply 250000 tons of scarce pure hydrogen raw materials at low cost every year. It has also built
a high-power self-contained power plant with a total capacity of 520MW which is leading in energy
efficiency in the industry. It provides a large amount of cheap electricity and steam at all levels for
refineries. It has self-operated two 300000-ton crude oil terminals 6 million tons of self-contained
crude oil tank farms and other various complete raw material finished product terminals tank farms
storage and other public works facilities significantly reducing various production and operating costs.The company consistently adheres to the philosophy of lean operations achieving continuous
optimization of energy and material consumption through end-to-end precision management. This
approach has established a sustainable cost-competitive advantage characterized by steady long-term
accumulation. The company focuses on reducing costs in key elements strengthening research and
25 / 3522024 Annual Report 26
judgment on the market trend of raw materials and continuously improving its raw material
procurement capabilities through domestic and international resource integration strategic and
opportunistic combination and other measures. It also reasonably controls raw material inventory and
reduces financial costs. In terms of equipment management it strengthens daily maintenance and
repair of equipment implements regular monitoring and testing and conducts systematic analysis and
evaluation to timely identify and eliminate potential risks ensuring the long-term stable operation of
production equipment.The company has unlocked facility potential through strategic maintenance turnarounds
implementing technical upgrades for critical units. By adopting digital twin and other advanced
technologies operational efficiency saw marked improvement establishing a virtuous cycle of
"management optimization → technological innovation → profitability enhancement." This approach
not only ensures long-term stable operations but also sustains industry-leading cost competitiveness
laying a solid foundation for high-quality development.In capital management the company has diversified financing channels optimized debt structure
and achieved historically low financing costs. Notably the successful issuance of 2024 Phase I & II
Short-Term Financing Bills (Sci-Tech Innovation Notes) totaled RMB 2 billion with a record-low coupon
rate of 2.15% – the most favorable terms in recent years.Starting from the second half of 2024 the company has basically ended the peak period of
investment construction and capital expenditure and the focus of subsequent operations will be more
on "optimizing operations reducing liabilities and strengthening dividends" under refined cost control
continuing to build a value-added "growth + return" listed company.
2. New material production capacity will be gradually put into use to achieve "optimizing
extending and supplementing" the industry chain.——The company’s 1.6 million tons/year high-performance resin and new materials project was
fully completed and put into production. As an important carrier for implementing the company's
development strategy of "improving upstream and strengthening downstream" and accelerating the
upgrade to the "platform + new materials" development model the products of the project mainly
include bisphenol A polycarbonate electronic grade DMC propylene glycol ethanolamine ethylene
amine polyoxymethylene acetic acid and other chemicals which are widely used in emerging
industries such as new energy electronics and automobiles. The completion and commissioning of the
project achieved efficient penetration and deep connection from feedstock supply to proprietary
process technologies to end markets reducing the proportion of bulk chemicals in the company while
increasing the output of fine chemicals and new material products which empowered the company to
strengthen and extend its industrial chain into downstream higher-value-added sectors driving the
industry toward high-end specialization and precision-oriented development.——Hengli Chemical Fiber's 400000-ton annual capacity high-performance specialty industrial
yarn intelligent production project has achieved full-line commissioning. With total industrial yarn
production capacity now reaching 800000 tons/year Hengli Chemical Fiber has become the world's
largest production base for high-performance industrial yarns providing downstream industries with
more abundant and higher-quality raw materials which significantly boosts the advancement of
domestic automotive chemical and electronics industries
The high-performance specialty industrial yarns exhibit exceptional properties including: high
strength & high modulus abrasion resistance and corrosion resistance and has been widely used in
different fileds such as automative (tire cord fabrics) Industrial (coveyor belts) Chemical (filtration
materials) Marine (deep-sea cables) Aerospace and Electronics (high-end electronic components).——The Suzhou Fenhu Base has successfully commenced full-scale production across its 12
functional film production lines achieving an annual production capacity of 470000 tons of high-end
functional polyester films. This significant expansion further enhances Kanghui New Materials'
competitive position in the mid-to-high-end functional film market segment. These advanced films find
extensive applications across multiple industries: in the electronics and electrical sector the product
portfolio includes release and protective base films MLCC (Multi-Layer Ceramic Capacitor) release
films and in-line silicone-coated release films; in optical materials the company produces polarizer
release and protective base films OCA (Optically Clear Adhesive) release films and high-brightness
26 / 3522024 Annual Report 27
base films; while in ultra-thin applications the company specializes in TTR (Thermal Transfer Ribbon)
base films particularly sub-4.5μm TTR films and other ultra-thin films below 8μm thickness.Concurrently the Nantong Base is making steady progress with its additional 12 functional film
production lines and lithium battery separator projects with phased commissioning scheduled to begin
in 2025. The combined operational capabilities of both the Fenhu and Nantong bases will establish
Kanghui New Materials as the global leader in both production scale and technological sophistication
for functional film materials.
3. Innovation drives development and technology empowers industrial upgrading.
Focus on core technology breakthroughs and fill the technological gaps in the industry. Adhering
to its "innovation-driven development" strategy the company has leveraged its well-established R&D
platform built over years to pursue development paths of market differentiation technological
advancement and business integration. Through sustained efforts in cutting-edge technologies and
advanced products of differentiated functional materials the company achieved significant
breakthroughs. In 2024 multiple technologies and products across the company's entire industrial
chain overcame "bottleneck" constraints made up for the shortcomings of the industry and filled
critical voids in the industry.Hengli Petrochemical Chemical's high-density polyethylene (HDPE) pipe-grade material 23050 has
obtained PE100 grade certification marking its attainment of domestic first-class standards. Hengli
Chemical Fiber achieved mass production of ultra-fine fiber 27D/144F with a single filament weight of
just 0.18g per 9000 meters reaching internationally leading standards in fineness indicators. The
overall technology of Hengke Advanced Materials' project on "Industrialization of New Disperse
Dyeable Polyester and Its Fibers Under Normal Pressure" attained internationally advanced levels with
its 10000-ton continuous polymerization technology for disperse dyeable polyester fibers under
normal pressure ranking as globally leading.The development of innovation platforms has yielded remarkable results. Hengli Chemical Fiber
was approved for the 2024 Jiangsu Provincial Intellectual Property Strategy Advancement Plan. Hengke
Advanced Materials has successively established provincial enterprise technology centers provincial
engineering technology research centers Jiangsu Provincial Postdoctoral Innovation Practice Bases
Provincial-level Enterprise Technology Center Provincial-level Engineering Technology Research Center
and Jiangsu Postdoctoral Innovation Practice Base etc. and obtained official certification as
the "Jiangsu Functional Polyester Fiber Engineering Research Center" in 2024.During the reporting period the company's R&D investment reached 1.703 billion yuan
representing a substantial 24% year-on-year increase. As of December 31 2024 the company's
intellectual property portfolio comprised a total of 1676 authorized patents globally with over 300
new patents granted in 2024 alone demonstrating continuously strengthening innovation momentum.Deepen the upgrade of intelligent manufacturing to fuel lean production. The company has
thoroughly promoted its "Intelligent Transformation and Digitalization" strategy establishing the
Henglink Industrial Internet Platform as the core of its digital ecosystem. This platform integrates
intelligent systems including NCC MES AWMS AGV and equipment management etc. enabling data
sharing and interaction to break down silos. It achieves end-to-end digital control spanning from raw
material procurement and production manufacturing to sales and services effectively improving quality
control reducing production costs and enhancing operational efficiency.During the reporting period the company's intelligent manufacturing capabilities gained further
authoritative recognition: Jiangsu Kanghui New Materials Technology Co. Ltd. successfully obtained the
highest-level AAA certification for the Integration of Industrialization and Informatization Management
System.The BOPET intelligent workshop was selected for the "2024 Jiangsu Provincial Intelligent
Manufacturing Workshop" list. Kanghui Nantong New Material Technology Co. Ltd. formally received
the national AAA-level certification for the Integration of Industrialization and Informatization
Management System.
27 / 3522024 Annual Report 28
4. Strengthen Safety and Environmental Protection Foundations Practicing Green and
Low-Carbon Development.Based on high-standard design planning construction and operation and detail management the
company implements intrinsically safe operations and green low-carbon operation practices. This
approach serves as the lifeline profit line and hallmark for promoting the stable efficient and
sustainable development of the listed company.Strengthen Intrinsic Safety Defenses and Build a Long-Term Governance System. In strict
adherence to the "Safety First Prevention Primary and Comprehensive Governance" principle the
company executes all safety-related work with rigorous attention to detail in a solid and meticulous
manner continuously elevating its intrinsic safety standards. By further strengthening the
implementation of primary safety responsibility a safety accountability framework that "covers all
aspects horizontally and penetrates all levels vertically" was established ensuring full coverage of
safety responsibilities without blind spots.The company rigorously implemented the dual preventive mechanism of risk classification control
and hidden hazard investigation and treatment strengthened safety risk assessment intensified
on-site safety management inspections and thoroughly conducted hidden hazard identification and
remediation work to ensure comprehensive risk mitigation.Additionally the company regularly organizes safety and environmental protection training
emergency drills and other activities to enhance employees' safety awareness and emergency
response capabilities across all levels which further consolidated the foundation of safe production
and ensured that the company's safety production situation continues to be stable and positive.Embracing Green and Low-Carbon Principles and Lay a Solid the Foundation for High-Quality
Development. The company actively practices the philosophy of "green development circular
development and low-carbon development across the entire industrial chain" keeping pace with
industrial trend and technological innovations. Through a series of targeted initiatives it has achieved
energy conservation and sustainable development throughout the entire production process.On one hand by implementing systematic optimization upgrades production process
improvements and refining management practices the company fully leverages integrated
upstream-downstream industrial chain synergies including process linkage material mutual supply and
energy coupling. Advanced technical measures such as heat energy cascade utilization and waste heat
recovery have been adopted to effectively reduce resource and energy consumption while enhancing
energy efficiency.During the reporting period Hengli Petrochemical Refining implemented a series of energy-saving
transformation projects such as reforming and optimizating hydrogen delivery process and asphalt
flash gas recovery technology transformation achieving an annual energy saving equivalent to 100200
tons of standard coal. Hengli Petrochemical Chemical introduced a N?O decomposition catalyst system in
its ammonia-nitrate plant where catalysts convert N?O into N? and O? reducing N?O emissions by
0.275 t/h – equivalent to 682000 tons of CO? reduction annually.
28 / 3522024 Annual Report 29
On the other hand the company sustainably optimizes its energy consumption structure to
support the achievement of the "Dual Carbon" goals (carbon peak and carbon neutrality).Hengli Chemical Fiber has actively implemented coal-to-gas conversion and biomass boiler
construction projects successfully displacing original coal fuels and reducing fossil energy consumption
by over 80000 tons of standard coal equivalent (tce).Kanghui New Material has constructed the largest photovoltaic power generation project in
Liaoning Province. In 2024 the cumulative power generation reached over 45 million kWh equivalent
to 5586 tons of standard coal reducing carbon dioxide emissions by approximately 15363 tons.The Hengli (Nantong) Industrial Park has reached a total installed photovoltaic capacity of
106.5MW generating over 100 million kWh of green electricity annually and reducing carbon
emissions by 60000 tons. Additionally the industrial park has built a 40MW energy storage project to
effectively absorb and utilize green electricity alleviate peak power demand pressure lower electricity
costs and strongly promote the company's sustainable development contributing significantly to the
realization of the "Dual Carbon" goals.Hengli (Nantong) Industrial Park Hengli (Nantong) Industrial Park
Photovoltaic Power Generation Energy Storage Project
Perseverance leads to excellence while diligence perfects the craft. During the reporting period
three enterprises within the Hengli (Dalian Changxing Island) Industrial Park were consecutively
awarded the national-level "Energy Efficiency Leader" title for the fourth year with their water
efficiency performance also ranking among the top. Hengli Chemical Fiber was recognized as the
"Green Development Leading Enterprise in the Yangtze River Delta Ecological Green Integrated
Development Demonstration Zone".Following Hengli Petrochemical (Dalian) Hengli Petrochemical Refining Hengke Advanced
Materials Hengli Chemical Fiber and Hengli Petrochemical Chemical Kanghui New Material has now
been designated as a national-level "Green Factory". With this latest recognition a total of six
subsidiaries under the company have achieved national "Green Factory" certification.
29 / 3522024 Annual Report 30
Hengli (Dalian Changxing Island) Industrial Park
In response to the future industrial development trends of "carbon neutrality" the company
remains steadfast in its transition toward green and low-carbon development. By deeply focusing on
high-end manufacturing as its core strategy it continuously advances orporate innovation intelligent
transformation and green development. The company maintains sustained commitment to
environmental social and governance (ESG) responsibilities striving to forge a high-quality green
sustainable development path that achieves both harmonious coexistence between industrial progress
and ecological protection and synergistic advancement of economic benefits and social value.II. Industry overview during the reporting period
Please refer to the relevant content of “I. Discussion and Analysis of Business Performance” in this
section for details.III. Business operations of the company during the reporting period
The company's main business covers the production research and development and sales of
materials products in the fields of refining aromatics olefins basic chemicals fine chemicals and
various downstream application areas from "one drop of oil to everything". At the same time relying
on the upstream "oil coal and chemical" integrated large chemical platform it deeply anchors the
rigid consumer market of "clothing food housing transportation and use" as well as the high-tech
barrier and high-value-added high-growth new material track. It continuously strengthens its internal
integration advantages cost moats and refined management and control and continues to build a
value-growth listed enterprise of "platform + new materials".The company has established a robust midstream and upstream business segment anchored by
processing capacities of 20 million tons of crude oil and 5 million tons of raw coal annually. This
infrastructure yields an array of high-value-added domestically sought-after chemical products
including: 5.2 million tons of PX 1.8 million tons of fiber-grade ethylene glycol 1.8 million tons of pure
benzene 850000 tons of polypropylene 720000 tons of styrene 400000 tons of high-density
polyethylene (HDPE) 850000 tons of acetic acid 140000 tons of butadiene and 720000 tons of
methanol. Additionally the company produces limited quantities of diesel and aviation kerosene.With 16.6 million tons/year of operational PTA capacity – now fully commissioned – the company has
emerged as the industry’s most technologically advanced and cost-competitive PTA supplier. The
downstream chemical new material products are rich in variety and complete in specifications
targeting the mid-to-high-end market demand covering polyester and chemical new material products
such as civilian polyester filament industrial polyester filament BOPET PBT PBS/PBAT etc. which are
applied in textile medicine automotive industry environmental protection and new energy electronic
and electrical photovoltaic industry optical equipment and other large-scale differentiated and high
value-added industrial manufacturing and civilian consumption fields.With the full production of world-class refining and ethylene key production capacity and the
continuous consolidation and expansion of the advantages of the entire industrial chain in the
upstream of the company the company has accelerated the development of a "big chemical" platform
supporting and raw material supporting conditions for the downstream high-end new material market
which is long-term deep-going and refined. Based on internal technology research and development
and external industrial cooperation the company continues to extend the value chain of chemical
materials and accelerates its entry into the market demand for "domestic substitution" and "rigid
consumption" represented by advanced manufacturing new energy new consumption new materials
and other end-use demand.IV. Analysis of core competitiveness during the reporting period
√适用□不适用
1. Strategic Leadership in Entire Industry Chain Development
30 / 3522024 Annual Report 31
The company is the industry leader in implementing the strategy of full industry chain
development for polyester new materials in China. It actively promotes the coordinated and balanced
development of various business segments and vigorously expands high-end capacity in the upstream
and downstream. The company is committed to building a world-class integrated platform for the
entire industry chain from "crude oil-aromatics olefins-PTA ethylene glycol-polyester-civil filament
industrial filament films plastics." The Hengli Integrated Refining and Petrochemical Project with an
annual capacity of 20 million tons and the Ethylene Project with a capacity of 1.5 million tons have
been fully put into operation achieving strategic breakthroughs in the refining aromatics and olefins
segments. The company has become the first enterprise in the industry to achieve integrated operation
and development of the entire industry chain from "crude oil-aromatics olefins-PTA ethylene
glycol-polyester new materials." With the sequential construction and operation of newly built
capacities such as PTA chemical new materials PBS/PBAT biodegradable new materials the company
continuously upgrades and optimizes its industrial model consolidates and expands the advantages of
each link's production capacity promotes the quantitative change in business scale and the qualitative
change in business structure. It establishes a strategic leadership advantage in adapting to the
high-quality competitive situation of the industry's full industry chain collaboration production
capacity structure quality equipment scale cost technological process accumulation project start-up
speed and the development of listed platforms.
2. Comprehensive Operational Advantage of Scale Technology and Support
The company continuously introduces internationally leading production equipment and mature
technology packages digests absorbs and utilizes them and continuously innovates and improves
technology and processes. It has established a high-quality and efficient production capacity structure
and supporting public engineering in the upstream midstream and downstream of the polyester new
materials industry chain characterized by "large-scale equipment large-scale production capacity
integrated structure advanced technology green and environmental protection and comprehensive
supporting facilities." Whether it is individual equipment total production capacity or production
processes the company is at the industry's leading processing scale and technological level. This
ensures the company's advantages in unit investment cost material and energy consumption saving
unit processing cost product delivery cycle product quality and diversification. Moreover the
company has the most comprehensive supporting capabilities in the industry including power supply
energy ports terminals tank farms storage and transportation. It stands out in terms of
comprehensive cost savings service quality performance and operational efficiency improvement. The
complementary relationships among refining petrochemicals and coal chemicals in the industrial park
form an efficient synergy of operations and costs. The refining business has the largest
coal-to-hydrogen unit in the country producing low-cost coal chemicals such as pure hydrogen
methanol acetic acid and synthesis gas. In addition the advantages of raw material and product
storage and transportation systems greatly enhance the operational flexibility and comprehensive cost
advantages of projects.
3. Market Competitive Advantage Driven by High-end Research and Development
The company follows a development path that emphasizes market differentiation high-end
technology and large-scale facilities while integrating business operations. It has a long-term
accumulated market-technology innovation mechanism and has established an international R&D team
and a high-level scientific research platform. Its technological research and development strength and
innovation capability in new products are leading in the industry. The company can quickly respond to
the latest market consumption demand changes and has a stable reserve of mid-to-high-end customer
resources. The four main operating entities of the company Hengli Fibre Deli Fibre Hengke New
Materials and Kanghui New Materials are all national high-tech enterprises. Through fine
management of the production process and continuous improvement of technology and processes the
company has independently developed and accumulated a series of differentiated and functional
products holds numerous production patents for various products and has gained wide market
recognition. The company's products are superior to competitors in terms of quality and stability. It is
the only company in China that can produce specification 5DFDY products on a large scale. Its market
share in MLCC separator films exceeds 65% domestically. It is also the only domestic and the second
31 / 3522024 Annual Report 32
global enterprise capable of producing 12-micrometer silicon-coated stacked lithium battery protection
films online. The company has absolute technological advantages and process accumulation in
functional films and civil polyester filament forming a competitive moat that is difficult to replicate in
the industry in the short term.
4. Efficient Management Advantage of Intelligence and Lean Manufacturing
The company strives to promote the deep integration of "Internet big data artificial intelligence
and the real economy" and develop advanced manufacturing capacity to regenerate internal growth
momentum. It regards "intelligent interconnection" as an important entry point for industrial
upgrading and transformation. By gradually implementing methods such as "machine replacing human
" "automatic equipment change " "complete set replacement of single machine " and "intelligence
replacing digitization " the company transforms its development model from relying on "population
dividends" to "technology dividends." Through the integration and application of intelligent
manufacturing the Internet and the Internet of Things the company continuously improves the level
of intelligent manufacturing throughout the entire process. It seamlessly integrates key links such as
control research and development manufacturing business management and finance through
self-developed product testing systems automatic barcode systems intelligent warehousing systems
and sales systems and interfaces with ERP systems to achieve product traceability and full-process
control. This promotes the company's transformation from "manufacturing" to "intelligent
manufacturing" and from single business management to highly synergistic operation of the industrial
chain. The company continuously enhances refined management and cost control capabilities
adhering to meticulous daily operation management and implementing cost optimization
imperceptibly through internal potential tapping and cost reduction/efficiency improvement initiatives.In terms of sales model the company maintains an integrated production-trade approach
characterized by "sales-frontloaded positioning sales-led production and production-driven sales". By
implementing market-oriented sales mechanisms and performance-based sales team incentives this
interconnected production-sales mechanism maximizes sales profits while ensuring real-time
information synergy across production distribution and demand sectors. This enables the company to
capture market opportunities maintain low-to-zero inventory operations and ensure rapid market
response capabilities. Through "high-quality products and efficient services" the company has built an
impregnable and unassailable moat for its production-sales system continuously heightening customer
trust and loyalty. To date the company has accumulated over 20000 long-term downstream clients.
5. Accumulated Talent Management Advantage
The company has formed a multidisciplinary and multi-professional scientific research team
including disciplines such as refining petrochemicals polymer materials chemical fiber engineering
textile engineering electrical engineering etc. Its scientific research and development capabilities are
ahead of domestic peers. While introducing external talents the company attaches great importance
to the cultivation of internal talents and provides a good career development path for employees. The
company has also established a sound internal training system covering research and development
production sales management and other aspects and has cultivated a large number of backbone
personnel.V. Main operating information during the reporting period
As of the end of 2024 the company's total assets were 273.083 billion yuan a year-on-year
increase of 4.79% and the net assets attributable to shareholders of listed companies were 63.399
billion yuan a year-on-year increase of 5.68%.In 2024 the company achieved a revenue from operations of RMB 236.273 billion a year-on-year
increase of 0.63%; a net profit attributable to shareholders of listed company of 7.044 billion yuan a
year-on-year increase of 2.01%.(I) Analysis of Primary operations
1. Analysis of changes in items related to income statement and cash flow statement
Unit: ten-thousand-yuan Currency: RMB
32 / 3522024 Annual Report 33
Item Amount in the Amount in the samereporting period period of last year Variance (%)
Revenue from operations 23627327.65 23479067.24 0.63
Cost of sales 21298333.19 20838385.19 2.21
Selling expenses 32643.15 29347.30 11.23
Administrative expenses 220467.53 199736.80 10.38
Financial expense 523363.41 536476.39 -2.44
Research and development
expenses 170288.42 137102.85 24.20
Net cash flows from operating
activities 2273256.53 2353579.01 -3.41
Net cash flows from investing
activities -2090226.50 -3881449.94 not applicable
Net cash flows from financing
activities 781728.10 990970.42 -21.11
Detailed description of major changes in the company's business type profit composition or profit
source in the current period
□适用√不适用
2. Revenue and cost analysis
√适用□不适用
(1). Segmentation of main business by sector product region and sales model
Unit: ten-thousand-yuan Currency: RMB
Segmentation of main operations by sector
Year-on-yea Year-on-yea
By sector Revenue from
Gross Year-on-yea r change of r change of
operations Cost of sales margi r change ofn (%) revenue (%) cost of sales gross margin(%) (%)
Petrochemica 21802786.4 19562565.8
l industry 3 8 10.27 -3.82 -3.11 -0.66% pts
Other
industries 1606948.64 1586194.51 1.29 146.64 177.93 -11.12% pts
Segmentation of main operations by product
Revenue from Gross Year-on-yea
Year-on-yea Year-on-yea
By product Cost of sales margi r change of r change of r change ofoperations n (%) revenue (%) cost of sales gross margin(%) (%)
Refining 10813940.8
products 7 9394117.30 13.13 -9.85 -3.88 -5.4% pts
PTA 6812213.47 6581003.78 3.39 -6.18 -10.58 +4.75% pts
Polyester
products 4176632.09 3587444.80 14.11 22.43 17.36 +3.71 % pts
Others 1606948.64 1586194.51 1.29 146.64 177.93 -11.12% pts
Segmentation of main operations by region
Year-on-yea Year-on-yea
By region Revenue from
Gross Year-on-yea
operations Cost of sales margi r change of
r change of r change of
n (%) revenue (%) cost of sales gross margin(%) (%)
33 / 3522024 Annual Report 34
Domestic 20538421.7 18292383.63 1 10.94 -5.58 -5.2 -0.35% pts
Overseas 2871313.35 2856376.78 0.52 83.13 94.93 -6.02% pts
Description of main business by industry by product by region and by sales model
Revenues costs and gross margins for refined products PTA and polyester products include sale
revenues purchase costs and gross margins.
(2). Production and sales volume analysis
√适用□不适用
Main Producti Invento Year-on-y Year-on-y Year-on-y
produc Unit on Sales ry ear ear ear
ts volume volume quantity change of change of change ofproduction (%) sale (%) inventory (%)
Refinin
g 10000 2549.55 1996.9produc 7 51.87 3.41 -7.73 -27.84
ts tons
PTA 1000
0 1683.59 1367.47 18.20 16.56 -3.85 -61.75tons
New
materi 1000
al 0 650.93 564.17 35.82 51.73 37.93 -10.85
produc tons
ts
Explanation of production and sales volume:
1. Refining and chemical products include all products of Hengli Refining and Hengli Petrochemical;
2. New material products include polyester new materials engineering plastics functional films and
biodegradable materials;
3. The sales volume of refining and chemical products and PTA includes trade volume but excludes
internal consumption within the company.
(3). Performance of major procurement contracts and major sales contracts
□适用√不适用
(4). Cost analysis
Unit: ten-thousand-yuan
By Sector
Proport Proporti
ion in on in
Cost Amount in
total
costs Amount in
total
costs Year-on-y
By sector compositio the of the the same ear Explanati
n reporting
of the
period reporti
period of
last year same
change on
ng period (%)
period of last
(%) year (%)
Petrochemi Direct 18009863. 85.16 18644485. 89.81 -3.40
34 / 3522024 Annual Report 35
cal industry materials 68 10
Direct labor 184906.12 0.87 147931.07 0.71 24.99
Power fuel 673977.61 3.19 668913.47 3.22 0.76
Manufacturi
ng expenses 693818.47 3.28 728499.46 3.51 -4.76
Direct 1406738.2
materials 1 6.65 535657.18 2.58 162.62
Other Direct labor 36313.82 0.17 8957.68 0.04 305.39
industries Power fuel 53407.94 0.25 880.36 - 5966.60
Manufacturi
ng expenses 89734.54 0.42 25218.71 0.12 255.83
By Product
Proport Proporti
ion in on in
Amount in total Amount in totalCost costs costs Year-on-y
By product compositio the of the the same ear Explanati
n reporting reporti period of
of the change on
period ng last year
same
period (%)
period of last
(%) year (%)
Direct 8535509.0
materials 2 40.36
8881184.2
842.78-3.89
Refining Direct labor 68087.12 0.32 64564.35 0.31 5.46
products Power fuel 321124.30 1.52 335907.95 1.62 -4.40
Manufacturi
ng expenses 469396.86 2.22 492017.50 2.37 -4.60
Direct 6292343.5
materials 8 29.75
7101089.0
234.20-11.39
Direct labor 25373.74 0.12 8834.21 0.04 187.22
PTA
Power fuel 145521.79 0.69 127750.10 0.62 13.91
Manufacturi
ng expenses 117764.67 0.56 121649.21 0.59 -3.19
Direct 3182011.0 2662211.8
materials 8 15.05 0 12.82 19.53
Polyester Direct labor 91445.26 0.43 74532.51 0.36 22.69
products Power fuel 207331.52 0.98 205255.42 0.99 1.01
Manufacturi
ng expenses 106656.94 0.50 114832.75 0.55 -7.12
Direct 1406738.2
materials 1 6.65 535657.18 2.58 162.62
Direct labor 36313.82 0.17 8957.68 0.04 305.39
Others
Power fuel 53407.94 0.25 880.36 - 5966.60
Manufacturi
ng expenses 89734.54 0.42 25218.71 0.12 255.83
Explanation of cost analysis and other situations:
None
35 / 3522024 Annual Report 36
(5). Changes in consolidation scope due to significant equity changes in subsidiaries during the
reporting period
□适用√不适用
(6). Significant Changes or Adjustments in Business Products or Services during the Reporting
Period
□适用√不适用
(7). Key sales customers and key suppliers' situation
A. Overview of key sales customers
√适用□不适用
The sales revenue from the top five customers amounted to 23.39 billion yuan accounting for 9.90 %
of the total annual sales. Among the sales revenue from the top five customers there were no sales
made to related parties representing 0% of the total annual sales.The sales ratio to a single customer during the reporting period exceeds 50% of the total there are
new customers among the top 5 customers or the company is heavily dependent on a small number of
customers.□适用√不适用
B. Overview of Key Suppliers
√适用□不适用
The purchasing amount from the top five suppliers amounted to 63.26 billion yuan accounting for
28.38 % of the total annual procurement. Among the purchasing amount from the top five suppliers
there were no purchases made from related parties representing 0% of the total annual procurement.The proportion of purchases from a single supplier in the Reporting Period exceeds 50% of the total
and there are new suppliers among the top 5 suppliers or heavy reliance on a small number of
suppliers.□适用√不适用
Other notes:
None
3. Expenses
□适用√不适用
4. Research and development investment
(1). Table of research and development investment status
√适用□不适用
Unit: hundred-million-yuan
Expensed research and development investment in the current
period 17.03
Capitalized research and development investment in the current
period -
Total R&D investment 17.03
Percentage of research and development investment to
operating revenue (%) 0.72
36 / 3522024 Annual Report 37
Percentage of capitalized research and development investment
to total research and development investment (%) -
(2). Research and development personnel statistics
√适用□不适用
Number of R&D personnel 3779
R&D personnel ratio (%) 9.87
Educational background of R&D personnel
Education Number of people
PhD Candidates 16
Master's degree 113
Bachelor degree and below 3650
Age distribution of R&D personnel
Age Number of people
Under 30 years old (30 excluded) 1436
30-40 years old (30 included 40 excluded) 1623
40-50 years old (40 incuded 50 excluded) 510
50-60 years old (50 included 60 excluded) 189
60 years and above 21
(3). Explanation
□适用√不适用
(4). Reasons for the significant changes in the composition of R&D personnel and their impact on
the company's future development
□适用√不适用
5. Cash flows
□适用√不适用
(II) Explanation of significant changes in profits due to non-core business
□适用√不适用
(III) Analysis of assets and liabilities situation
√适用□不适用
1. Assets and liabilities status
Unit: ten-thousand-yuan
Ratio Ratio of Percentage
of closing change in
Closing closingbalance Closing
balance closing
Item balance of of balance of
of balance
current current previous
previous compared Explanation
period period period betweenperiod to total current
to total assets period to
assets (%) previous
37 / 3522024 Annual Report 38
(%) period (%)
Mainly due to the
Financial increase in fair value
assets held 42838.04 0.16 29883.01 0.11 43.35 of derivative financial
for trading instruments heldduring the current
period.Mainly due to the the
increase in bank
acceptance bills and
receivable letters of
Receivable credit held by Hengli
Financing 662866.38 2.43 417004.76 1.60 58.96 International at theperiod-end with the
major receivable
entities being large
international energy
corporations.Mainly due to the
Prepayments 243212.77 0.89 173555.85 0.67 40.14 increase in prepaidmaterial purchases in
this period
Right-of-use Mainly due to new
assets 43604.88 0.16 7713.27 0.03 465.32 equipment leasingcontracts
Mainly due to the
increase in deferred
Deferred tax 46773.92 0.17 27632.52 0.11 69.27 income tax assetsassets recognized from the
provision for inventory
impairment
Mainly due to the
decrease in long-term
Other asset purchase
non-current 134870.86 0.49 338328.79 1.30 -60.14 payments related to
assets construction in
progress made during
the current period.Mainly due to the
Accounts decrease in the
payable 948965.76 3.48 1559866.76 5.99 -39.16 amount payable formaterial purchases in
this period
Other Mainly due to the
current 638684.07 2.34 471835.39 1.81 35.36 increase in short-term
liabilities bonds payable
Lease Mainly due to new
liabilities 30479.59 0.11 4151.65 0.02 634.16 equipment leasingcontracts
Other notes
None
38 / 3522024 Annual Report 39
2. Overseas asset situation
√适用□不适用
(1). Asset scale
Including: Overseas assets 121.24(unit:hundred million yuan Currency:RMB) accounting for 4.44% of
total assets.
(2). Explanation of a higher proportion of overseas assets
□适用√不适用
3. Major assets under restriction at the end of the reporting period
√适用□不适用
Unit: ten-thousand-yuan Currency:RMB
Item Carrying value at year Reason of restriction
end
Cash and bank balances 628264.87 Pledge to obtain financing credit fromfinancial institutions
Cash and bank balances 379.26 Security deposits for trading in futuresand financial derivatives
Receivables Financing 346825.52 Pledge to obtain financing credit fromfinancial institutions
Fixed assets 8195293.27 Mortgage to obtain financing credit fromfinancial institutions
Fixed assets 297714.45 Mortgage used to secure sale andleaseback contracts
Intangible assets 449966.37 Mortgage to obtain financing credit fromfinancial institutions
Construction in progress 2093818.29 Mortgage to obtain financing credit fromfinancial institutions
total 12012262.02
4. Other notes
□适用√不适用
(IV) Analysis of industry operating information
√适用□不适用
Analysis of operational information of chemical industry
1. Overview of the industry
(1). Industry policies and their changes
√适用□不适用
* "Action Plan for 2024-2025 Energy Conservation and Carbon Reduction"
In May 2024 the State Council issued the "Action Plan for 2024-2025 Energy Conservation and
Carbon Reduction" which specifies key tasks for the petrochemical and chemical industries: First it
strengthens binding requirements for petrochemical industry planning and layout strictly controlling
new production capacity in refining calcium carbide ammonium phosphate yellow phosphorus and
other sectors. New and expanded petrochemical projects must meet energy efficiency benchmark
levels and Grade A environmental performance standards with capacity replacements requiring timely
shutdowns and dismantling of main production facilities as mandated. It mandates complete phase-out
39 / 3522024 Annual Report 40
of atmospheric and vacuum distillation units with capacity below 2 million tons/year aiming to cap
national primary crude oil processing capacity within 1 billion tons by end-2025. Second it accelerates
energy-saving and carbon reduction upgrades in the petrochemical industry through energy system
optimization enhanced recovery of high/low-pressure steam vent gas waste heat and pressure and
promotion of energy-efficient equipment like large high-efficiency compressors and advanced gasifiers.By end-2025 over 30% of refining ethylene synthetic ammonia and calcium carbide capacity must
reach benchmark energy efficiency levels while sub-baseline capacity must complete technical
upgrades or exit. Third it promotes petrochemical process reengineering by accelerating adoption of
advanced technologies like next-generation ion-membrane electrolyzers vigorously developing
renewable energy alternatives encouraging R&D of renewable hydrogen production technologies
supporting green hydrogen refining projects to gradually reduce coal-based hydrogen usage
systematically replacing steam drives with electric drives and exploring nuclear energy applications for
steam/heat supply in major petrochemical parks.* "Work Plan for Stable Growth in Petrochemical and Chemical Industry"
The "Work Plan for Stable Growth in the Petrochemical and Chemical Industry" jointly issued by
the Ministry of Industry and Information Technology and other six departments in 2023 pointed out
that we should vigorously implement the goals and tasks of the "Guiding Opinions on Promoting
High-quality Development of the Petrochemical and Chemical Industry in the 14th Five-Year Plan". The
Plan proposed that we should support key enterprises to create an original technology source for the
industry which is mainly based on the needs of strategic emerging industries and the transformation
and upgrading needs of traditional industries to enrich the supply of new chemical materials and
specialty chemicals and increase the supply of key generic technology innovation solutions so as to
effectively play a leading role in supporting and demonstrating the industrial chain.* "Guiding Opinions on Promoting the High-Quality Development of the Petrochemical and
Chemical Industry During the '14th Five-Year Plan'"
In October 2021 the National Development and Reform Commission the Ministry of Industry and
Information Technology and other departments jointly issued the "Opinions on Strict Energy Efficiency
Constraints to Promote Energy Conservation and Carbon Reduction in Key Sectors" and the "Action
Plan for Energy Conservation and Carbon Reduction Driven by Strict Energy Efficiency Constraints in the
Petrochemical and Chemical Industry (2021-2025 years) ". The plan aims to promote green and
low-carbon transformation in the refining ethylene and synthetic ammonia industries and ensure the
timely achievement of carbon peak targets.* "Action Plan for Energy Conservation and Carbon Reduction Driven by Strict Energy
Efficiency Constraints in the Petrochemical and Chemical Industry (2021-2025 years)"
In October 2021 the National Development and Reform Commission the Ministry of Industry and
Information Technology and other departments jointly issued the "Opinions on Strict Energy Efficiency
Constraints to Promote Energy Conservation and Carbon Reduction in Key Sectors" and the "Action
Plan for Energy Conservation and Carbon Reduction Driven by Strict Energy Efficiency Constraints in the
Petrochemical and Chemical Industry (2021-2025 years) ". The plan aims to promote green and
low-carbon transformation in the refining ethylene and synthetic ammonia industries and ensure the
timely achievement of carbon peak targets.The "Action Plan" clearly puts forward the action goals of achieving a capacity ratio exceeding 30%
at benchmark levels for the refining ethylene synthetic ammonia and calcium carbide industries by
2025 through the implementation of energy conservation and carbon reduction measures. It aims to
significantly improve the overall energy efficiency level reduce carbon emissions intensity and
significantly enhance the capabilities for green and low-carbon development. Key tasks outlined in the
plan include formulating a general implementation plan for technological transformation in key
petrochemical industries guiding the orderly phasing out of inefficient production capacity promoting
energy-saving and low-carbon technologies and equipment and driving collaborative and clustered
development in the industry. This includes selecting advanced and applicable energy-saving
technologies for the refining ethylene and synthetic ammonia industries as well as guiding
technological transformation in enterprises with low energy efficiency. The plan also promotes the
elimination of refining units with a capacity of 2 million tons/year and below ethylene units with a
40 / 3522024 Annual Report 41
capacity of 300 000 tons/year and below and imposes strict restrictions on the construction of certain
types of units with limited capacities. Additionally the plan encourages the promotion of low-carbon
deep processing of heavy and poor-quality residual oil one-step method for ethylene production from
synthesis gas and crude oil direct cracking to produce ethylene. It emphasizes the integration of
refining and petrochemical industries coal conversion and electricity heating integration and the
development of multiple co-production. The aim is to establish interconnected industrial chains where
enterprises are connected from upstream to downstream with mutual supply and demand and
interconnectivity of production facilities. This will improve the level of comprehensive resource
utilization reduce energy consumption in logistics and transportation and promote the recognition of
chemical industrial parks.
(2). Basic information on the main industrial segment and industrial status of the company
√适用□不适用
* In the petroleum refining and chemical sector
The company has established a processing capacity of 20 million tons of crude oil and 5 million
tons of raw coal in the upstream and midstream business sectors with a main annual output of 5.2
million tons of PX 1.8 million tons of fiber-grade ethylene glycol 1.8 million tons of pure benzene
850000 tons of polypropylene 720000 tons of styrene 400000 tons of high-density polyethylene
850000 tons of acetic acid 140000 tons of butadiene 720000 tons of methanol and other
domestically scarce and high-value-added chemical products as well as a small amount of diesel and
aviation kerosene. As smaller refineries with higher production costs and outdated facilities are
gradually phased out the concentration of the refining and chemical industry and the competitiveness
of large-scale newly built refineries will greatly improve. The company has prominent advantages in
policy support process technology and industrial synergy. Compared to other refineries it has
characteristics of high quality and low cost making it highly competitive in the market.* In the PTA sector
PTA serves as the direct upstream raw material for polyester production and China is the world's
largest producer and consumer of PTA. The company currently has built and put into operation a PTA
production capacity of 16.6 million tons/year. It has the most advanced technology and the most
significant cost advantages.* In the polyester new materials sector
One of the company's primary operations is the research production and sales of related
products. The company offers a diverse range of downstream polyester and advanced chemical
materials with comprehensive product specifications targeting mid-to-high end markets including
civilian polyester filament yarn industrial polyester filament yarn BOPET films PBT engineering
plastics and PBS/PBAT biodegradable materials which are widely used in textile pharmaceutical
automotive renewable energy & environmental protection electronics & electrical photovoltaic and
optical equipment industries for large-scale differentiated and high-value-added industrial
manufacturing and consumer applications. As one of China's largest and most technologically advanced
manufacturers of polyester yarns the company ranks among the top 5 domestic producers of civilian
filament yarn and is the global leader in industrial filament yarn production capacity.The subsidiary company Kanghui New Material focuses on creating world-leading high-end
differentiated green and environmentally friendly functional film materials high-performance
engineering plastics and biodegradable materials. In terms of functional film materials Kanghui New
Material has broken through foreign technical barriers in the fields of high-end MLCC release base film
polarizer release protection base film OCA release base film environmental protection RPET base film
composite current collector base film lithium battery process protection film photosensitive dry film
base film ultra-thin capacitor film etc. and has continued to solve the "choke point" problem in the
field of new materials. It has the core competitiveness and industrial development strength of the
industry.Kanghui New Material has established itself as China's largest PBT producer with an annual
capacity of 660000 tons of high-performance engineering plastics widely used in automotive
electronics industrial machinery textile optical cable polymer alloy and blending industries. In
41 / 3522024 Annual Report 42
biodegradable materials it operates China's largest single-line PBAT production facility (33000
tons/year) using proprietary technology supplying raw materials for eco-friendly applications including
PBS/PBAT-based food-grade shopping bags tableware straws and agricultural films. The company also
possesses 611000 tons/year BOPET film production capacity with additional capacities under
construction including 727000 tons/year functional polyester films and 1.94 billion m2/year lithium
battery separator films.
2. Products and production
(1). Main business model
√适用□不适用
The company's main business model involves the procurement of crude oil and related additives
primarily producing PX products and finished oil as well as other chemicals. The PX products are
mainly used as raw materials for the company's PTA plant with a portion of the PTA products being
used internally by the company's polyester factory and the rest being sold to downstream customers
in the fiber industry for the production of polyester fibers and other products. Various polyester
products are sold to downstream weaving factories for the production of textiles industrial yarn is sold
to construction and automotive component manufacturers polyester chips are sold to spinning
companies BOPET films are sold to downstream printing packaging and electronics companies and
PBT resins are sold to downstream automotive electronics and machinery companies. The specific
operating modes are as follows:
* Petroleum refining sector
Petroleum products also known as oil products are processed from crude oil through various
refining processes such as atmospheric distillation hydrogenation cracking and reforming. These
processes produce various fuel oils (gasoline kerosene diesel etc.) lubricants coke paraffin wax
asphalt basic organic materials (ethylene propylene butene benzene toluene xylene acetylene
naphthalene) as well as various synthetic organic materials derived from the basic organic materials.* PTA sector
PTA (Purified Terephthalic Acid) is an important bulk organic material widely used in various
sectors of the national economy including chemical fibers light industry electronics and construction.In the domestic market the main downstream products of PTA are polyester fibers which are primarily
used in clothing home textiles and industrial textiles. The main business process involves purchasing
para-xylene (PX) and producing PTA through oxidation reactions crystallization drying hydrogenation
and further crystallization processes followed by selling the product to downstream customers.The profit model in the PTA industry is based on producing and selling PTA products to generate
profits. Since the fixed investment for the products is significant improving profitability relies mainly
on reducing the fixed cost per unit. Companies achieve this by capitalizing on economies of scale
adopting advanced processing technologies and equipment establishing efficient public infrastructure
enhancing production safety and product quality stability and ultimately lowering production costs to
increase profitability.* Polyester sector
The primary business process involves the procurement of petrochemical products such as PTA
MEG and other additives followed by polymerization reactions using appropriate production
equipment. Subsequently the polyester filaments are produced through spinning and drawing
processes and the products are sold to downstream weaving companies for the production of civil and
industrial textiles.The profit model in the polyester filament industry is based on producing and selling polyester
filaments to generate profits. Due to the significant fixed costs associated with the products improving
profitability depends on three main factors: reducing the fixed cost per unit increasing the rate of new
product development and adding differentiated products. Companies achieve this by focusing on
increasing the rate of new product development pursuing differentiation in product lines enhancing
product value and ultimately improving overall profitability.* Polyester film sector
42 / 3522024 Annual Report 43
The main business process involves the procurement of petrochemical products such as PTA MEG
and other additives. Unlike the polyester industry the equipment and process routes differ. In the
polyester industry equipment is used to extrude the film into polyester filaments while in the
polyester film industry equipment is used to extrude the film directly. Consequently the downstream
customer base is different.The profit model in the polyester film industry is based on producing and selling polyester films to
generate profits. Due to the significant fixed investment required improving profitability depends
mainly on two factors: reducing the fixed cost per unit and developing new products. For companies
relying on the cutting-edge equipment technology self-owned synthesis technology and independent
research and development capabilities accumulated in the industry for more than ten years they
overcome various technical difficulties break through foreign technical barriers in the fields of medium
and high-end MLCC release base film polarizer release protection base film OCA release base film
environmental protection RPET base film composite current collector base film lithium battery
process protection film photosensitive dry film base film ultra-thin capacitive film and PBS-based
biodegradable materials and actively extend and expand the medium and high-end material business
in various application scenarios.* Engineering plastics sector
The primary business process involves the procurement of petrochemical products such as PTA
BDO and other additives. The production process includes polymerization extrusion pulverization
and granulation ultimately producing engineering plastics. The products are then sold to downstream
customers.The profit model in the engineering plastics industry is based on producing and selling plastic
pellets to generate profits. Due to the significant fixed investment associated with the products
improving profitability relies mainly on two factors: reducing the fixed cost per unit and developing
new products. For companies the future primarily involves capitalizing on economies of scale to seize
market share increasing product added value and improving overall profitability.Main circumstances of adjustments to the business model during the reporting period
□适用√不适用
(2). Main products
√适用□不适用
Primary
Product Business sector upstream Applications of major Main factors affectingraw downstream materials prices
materials
Refined oil Petroleum Crude Oil Aviation kerosene gasoline Upstream raw
refining and diesel and other power materials like crude oil
fuels and downstream
demand
PX Chemical raw Crude Oil PTA Upstream raw
materials and materials like crude oil
chemicals and downstream
manufacturing demand
Ethylene Chemical raw Crude Oil Polyethylene ethylene glycol Upstream raw
materials and materials like crude oil
chemicals and downstream
manufacturing demand
PTA Chemical raw PX Polyester fiber bottle grade Crude oil and PX
materials and chips film grade chips etc. supply and
chemicals downstream demand
manufacturing
43 / 3522024 Annual Report 44
Polyester Polyester PTA MEG Advertising light box cloth Upstream raw
Filament manufacturing geotextile conveyor belt materials like crude oil
Yarn (PFY) automobile fiber and tire and downstream
meridian clothing and home textile prosperity
textiles etc.Polyester Polyester PTA MEG Filature Upstream raw
Filament manufacturing materials like crude oil
and downstream
demand
BOPET Plastics product PTA MEG Packaging film insulating Upstream raw
manufacturing film capacitor film etc. materials like crude oil
and downstream
demand
PBT Plastics product PTA BDO Auto parts electronic Upstream raw
manufacturing appliances aerospace materials like crude oil
materials etc. and downstream
demand
PBS/PBAT Plastics product PTA BDO Packaging materials shrink Upstream raw
manufacturing Adipic acid film agricultural film etc. materials like crude oil
and downstream
demand
(3). R&D and innovation
√适用□不适用
As of the end of 2024 the company holds a total of 1676 patents including 345 newly approved
patents during the reporting period.For specific details please refer to the relevant content in the "04 Innovation-Driven and Digitally
Intelligent Escort" chapter of the "2024 Sustainable Development Report" disclosed by the company on
the Shanghai Stock Exchange website (www.sse.com.cn) on April 17 2025.
(4). Production technology and process
√适用□不适用
During the reporting period there were no significant changes in the company's main products
and their production processes.For specific details regarding the production processes of the company's main products in the
polyester fiber sector please refer to Section 4 "Discussion and Analysis of Operating Conditions "
subsection "II. (IV) Analysis of Operational Information in the Chemical Industry " and the section
"Production Processes and Flow" (page 33) in the company's "2016 Annual Report."
Regarding the production processes of the company's refining and ethylene engineering as well
as the PBAT project please refer to Section 4 "Discussion and Analysis of Operating Conditions "
subsection "II. (IV) Analysis of Operational Information in the Chemical Industry " and the section
"Production Processes and Flow" (page 34) in the company's "2020 Annual Report."
(5). Production capacity and construction work
√适用□不适用
Unit: hundred-million-yuan Currency:RMB
Investment
Major plants/projects Designed
Capacity Planned
capacity utilization
Capacity under in capacity
construction under Completion(%) construction time
Polyester Filament 18010000
Yarn (PFY) of Suzhou tons/year 100
44 / 3522024 Annual Report 45
Investment
Major plants/projects Designed
Capacity
utilization Capacity under in capacity
Planned
capacity construction under Completion(%) construction time
plant
PFY for civil use of 21010000
Nantong plant tons/year 100
PFY for civil use of 200000
Suqian plant tons/year 100
Polyester film of
Kanghui New Material 386000
(Yingkou) Industrial tons/year 100
Park
Engineering plastics of
Kanghui New Material 2110000
(Yingkou) Industrial tons/year 100
Park
PBS bio-degradable
advanced materials
project of Kanghui New 33000 100
Material (Yingkou) tons/year
Industrial Park
PTA of Dalian plant 11600000tons/year 100
Refining and chemical 20 million
project of Dalian plant tons/year 107.7
Ethylene project of 1.5 million
Dalian plant tons/year 106
Two lines
have been
converted
to fixed
PBS biodegradable assets and
plastics in Kanghui / / 450000 tons/year 28.11 the
Dalian plant remainingfour lines
are
gradually
put into
production
One line
has been
converted
to fixed
Lithium battery assets and
separator in Kanghui / / 440 million square 10.83 the
Yingkou Plant meters/year remainingthree lines
are
gradually
put into
production
45 / 3522024 Annual Report 46
Investment
Major plants/projects Designed
Capacity Capacity under in capacity Planned
capacity utilization(%) construction under
Completion
construction time
PTA of Huizhou Plant 5 milliontons/year 100
Hengli Petrochemical 300000
Chemical New Material tons/year
Supporting Chemical of adipic 100
Project acid
Projects
Annual output of 1.6 Bisphenol A are
million tons of isopropanol ethylene
high-performance resin / / oxide electronic
gradually
217.55 being
and new material grade DMC (including transferred
projects EC EMC and DEC)ABS etc. to fixedassets
The first phase of the
project plans to build
a 470000 tons/year Four lines
high-end functional have been
polyester film plant converted
(totaling 12 lines) and into fixed
Annual output of 800 the second phase assets and
000 tons of functional / / includes a 100000
the
films and functional tons/year functional 49.82 remaining
plastics project film modification eight lines
plant a 150000 will be
tons/year modified converted
PBT plant and a into fixed
80000 tons/year assets in
modified PBAT plant succession
etc.The first phase of the
project plans to build
a 500000 tons/year
polyester film
Annual output of 600 production line a
000 tons of functional 100000 tons/year Expected
films and functional polyester film coating to be put
plastics functional film / / production line a 1.5 75.48 into
and 3 billion square billion square production
meters lithium battery meters/year lithium line by line
separator project battery separator this year
production line and a
600 million square
meters/year coating
production line
New Materials Annual production of
Industrial Park Phase II / / 600000 tons of BDO
The project
Project and supporting
63.48 is in trial
projects production
46 / 3522024 Annual Report 47
Note: 1. The designed capacity of the plants and the projects listed above refers to what has been put
into production excluding those under construction.
2. The date of the invested amount of production capacity under construction is as of the end of
2024.
Increase and decrease of production capacity
√适用□不适用
1. Hengli Chemical Fiber's intelligent production project with an annual output of 400000 tons of
high-performance special industrial yarn has been put into production.
2. Hengli (Huizhou) Industrial Park has fully put into operation of the 5 million tons/year PTA.
Adjustment of product line and production capacity structure optimization
□适用√不适用
Abnormal shutdown
□适用√不适用
3. Raw material procurement
(1). Basic situation of main raw materials
√适用□不适用
Unit: 10000 tons
Major raw Procurement Settlement Year-on-year Procurement Consumption
materials model model price changeratio (%) quantity quantity
Crude Oil Contract spot Letter of creditCable transfer 0.16 2125.45 2050.46
Contract spot Cable transfer
PX Letter of creditBank acceptance -6.04 535.75 1097.64
bills
MEG Contract spot Cable transfer 20.23 164.69
BDO Contract spot Bank acceptancebills -15.49 16.65 19.23
The impact of major procurement price changes on the Company’s operating costs: the procurement
prices of the raw material exerting positive impact on the Company’s operating costs.
(2). Basic situation of main energy
√适用□不适用
Major Procurement Settlement Year-on-year Procurement Consumption
energy model model price changeratio (%) quantity quantity
Electricity Market-oriented Monthlyprocurement settlement 583508.23Wandu 885003.66Wandu
Thermal Market-oriented Monthly 1022.2410000 995.6410000
coal procurement settlement tons tons
Natural gas Market-oriented Monthly 365498900 cubic 365498900 cubicprocurement settlement meters meters
47 / 3522024 Annual Report 48
The price of major energy sources is directly proportional to the Company's operating costs. The prices
of major energies are affected by national policies the supply and demand structure of the regional
markets and the stability of supply.
(3). Risk response measures for raw material price fluctuations
The main situation of holding derivatives and other financial products
□适用√不适用
(4). Basic situation of adopting other methods such as staged reserves
□适用√不适用
4. Product Sales
(1). Basic situation of the company's main operations by segment
√适用□不适用
Unit: ten-thousand-yuan Currency:RMB
Year-on-y Year-on-ye Year-on-y
Revenue ear ear GrossBusiness from Cost of
Gross
margin changes in
ar changes changes margins
segment operations sales (%) operating
in
operating in gross amongrevenue cost (%) margin the peers(%) (%)
Petrochemical 2180278 19562
segment 6.43 565.88 10.27 -3.82 -3.11 -0.66 /
Other 1606948. 15861
segments 64 94.51 1.29 146.64 177.93 -11.12 /
(2). Basic situation of the company's main operations by sales channel
□适用√不适用
Note to accounting policies
□适用√不适用
5. Environmental protection and safety situation
(1). Basic situation of major production safety accidents during the company's reporting period
□适用√不适用
(2). Major environmental violations
□适用√不适用
(V) Investment status analysis
General analysis on external equity investment
48 / 3522024 Annual Report 49
□适用√不适用
1. Major equity investment
□适用√不适用
2. Major non-equity investments
□适用√不适用
3. Financial assets measured at fair value
□适用√不适用
Securities investment situation
□适用√不适用
Description of securities investment situation
□适用√不适用
Private Equity Fund Investment
□适用√不适用
49 / 3522024 Annual Report 50
Derivatives Investment
√适用□不适用
(1). Derivatives investment for hedging purposes during the reporting period
√适用□不适用
Unit: ten-thousand-yuan Currency:RMB
Gains and Cumulative Percentage
Initial losses on fair
gains and Purchase of book
Beginning value losses on during the Sales during value toDerivatives Investment Types investment Ending
amount book value changes in
fair value reporting the reportingchanges period book value
total net
current period assets at
period recognized period-endin equity (%)
Commodity derivatives 111235.71 -14167.21 35845.55 -5717.04 3539695.00 3467476.29 16541.66 0.26
total 111235.71 -14167.21 35845.55 -5717.04 3539695.00 3467476.29 16541.66 0.26
Accounting policies and principles for
hedging activities during the reporting The Company accounts for and discloses its futures hedging activities in accordance with CAS 22 (Recognition and
period and explanation of significant Measurement of Financial Instruments) CAS 24 (Hedge Accounting) and CAS 37 (Presentation of Financial Instruments)
changes compared to the previous along with their implementing guidelines. During the reporting period the Company's hedge accounting policies and
reporting period specific accounting principles remained unchanged from the previous period.Explanation of actual gains and loss The reported period's derivative transactions resulted in a net impact of CNY 358.4555 million on the company's
during the reporting period profit/loss.The hedging activities successfully mitigated adverse operational impacts caused by significant fluctuations in crude oil
Description of hedging effect and product prices effectively managing risks associated with extreme price volatility. The outcomes substantially
achieved the intended risk management objectives.Funding sources for derivatives
investment Own funds
Risk analysis and Control measures for To mitigate the impacts of significant fluctuations in crude oil and product prices on the Company—including price
derivative positions during the volatility risk capital risk internal control risk technical risk and policy risk—the Company has established relevant
reporting period (including but not management systems for futures hedging operations. These systems specify the organizational structure professional
limited to market risk liquidity risk staffing and responsibilities approval authorities business processes and risk management measures for conducting
credit risk operational risk legal risk hedging activities. Through strict internal control guidance and standardized implementation a relatively
50 / 3522024 Annual Report 51
etc.) comprehensive risk control system has been formed.Fair value changes of invested
derivatives during the reporting period
and the analysis of derivatives' fair
value shall disclose the specific Fair value changes are determined based on quotes from pricing agencies according to transactional needs.methods used and the relevant
assumptions and parameter settings:
Litigation Status (if applicable) None
Disclosure date of board approval
announcement for derivative 2024/4/10
investments (if any)
Disclosure date of shareholders'
meeting approval announcement for 2024/5/1
derivative investments (if any)
(2). Derivatives investments for speculative purposes during the reporting period
√适用□不适用
None
51 / 3522024 Annual Report 52
4. Specific progress of major asset reorganization and integration during the reporting period
□适用√不适用
(VI) Sale of major assets and equity interests
□适用√不适用
(VII) Analysis of major holding and participating companies
√适用□不适用
Unit: hundred-million-yuan Currency:RMB
Company name Shareholding Business nature Registered Total Net Net(%) capital assets assets profit
Hengli
Petrochemical 100.00 Manufacturing 175.96 1134.72 332.43 19.82
Refining
Hengli
Petrochemical 100.00 Manufacturing 58.90 333.19 119.42 3.54
(Dalian)
Hengli Chemical
Fiber 100.00 Manufacturing 22.08 470.07 76.79 11.49
Hengli
Petrochemical 100.00 Manufacturing 45.75 705.78 100.88 23.69
Chemical
Note: Jiangsu Hengli Chemical Fiber Co. Ltd. includes its subsidiaries Jiangsu Hengke Advanced
Materials Co. Ltd. Nantong Teng'an Logistics Co. Ltd. Jiangsu Xuanda Polymer Material Co. Ltd.Jiangsu Deli Chemical Fiber Co. Ltd. Hengli Futures Co. Ltd. Hengli Hengxin Industry and Trade
(Shanghai) Co. Ltd. Suzhou Susheng Thermal Power Co. Ltd. Suzhou Binglin Trading Co. Ltd. Sichuan
Hengli New Material Co. Ltd. Hengli New Materials (Suqian) Co. Ltd. Suzhou Hengli Chemical New
Material Co. Ltd.Hengli Petrochemical (Dalian) Co. Ltd. including its subsidiaries - Hengli Shipping (Dalian) Co. Ltd.Hengli Petrochemical Co. Ltd. Shenzhen Ganghui Trading Co. Ltd Suzhou Hengli Jiuli Sales Co. Ltd.and Suzhou Hengli Huirun Import and Export Co. Ltd..Hengli Petrochemical (Dalian) Refining and Chemical Co. Ltd. includes its subsidiaries - Hengli
Petrochemical International Pte. Ltd. Hengli Shipping International Pte. Ltd. Hengli Energy (Hainan)
Co. Ltd. Hengli Oil and Chemical (Hainan) Co. Ltd. Suzhou Hengli Chemical Import and Export Co. Ltd.Shenzhen Shengang Trading Co. Ltd. Shanghai Jinmintai Trading Co. Ltd. Hengli Refining and
Chemical Product Sales (Dalian) Co. Ltd. Hengli Aviation Oil Co. Ltd. Hengli Oil and Chemical (Suzhou)
Co. Ltd. Hengli Energy (Jiangsu) Co. Ltd. Suzhou Hengli Chemical Polymer Co. Ltd. Suzhou Hengli
Energy Chemical Import and Export Co. Ltd Nantong Hengli Import and Export Co. Ltd. and Hengli
(Zhoushan) Energy Chemical Co. Ltd..Hengli Petrochemical (Dalian) Chemical Co. Ltd. includes its subsidiaries Hengli Petrochemical
(Dalian) New Materials Technology Co. Ltd. Hengli Petrochemical Public Engineering (Dalian) Co. Ltd.
and Dalian Hengzhong Special Materials Co. Ltd.(VIII) Structured entities controlled by the company
√适用□不适用
On December 31 2024 structured entities related to the company but not included in the scope
of the financial statements are mainly engaged in asset management business operating client assets
and providing clients with investment management services for securities futures and other financial
52 / 3522024 Annual Report 53
products. The total assets of this type of structured entity on December 31 2024 are 4548889 million
yuan.VI. Discussions and analysis of the Company’s future development
(I) Industrial landscape and trend
√适用□不适用
1. Petrochemical industry
(1) The industry is accelerating its transformation towards green and low-carbon development
promoting the dual-track development of digital and green transformation
Under the "dual carbon" goal the petrochemical industry continues to deepen green
development through clean production technology transformation intensive resource utilization and
circular economy models. The industry is accelerating the demonstration and application of CCUS
technology while exploring innovative paths such as direct conversion of carbon dioxide from
hydrogen production tail gas and catalytic cracking flue gas carbon dioxide dry reforming and carbon
dioxide hydrogenation to produce oil products. These initiatives have significantly reduced the carbon
emission intensity across the entire industrial chain.Accelerate the in-depth integration of new generation information technologies such as 5G big
data and artificial intelligence with the petrochemical and chemical industry; Continuously enhance
the ability to obtain chemical process data; Enrich data in enterprise production management process
control product flow and other aspects; Connect production and operation information data "islands";
Build analysis models for production and operation market and supply chain; Strengthen integrated
control of the entire process; Boost the adoption rate of digital twin innovation applications; Accelerate
digital transformation; Achieve organizational structure optimization dynamic and accurate services
assist in management decision-making and other management model innovations; Improve intrinsic
safety; And enhance enterprise management capabilities.
(2) The market for high-end chemical new materials is vast
The localization window for high-end chemical materials has opened accelerating the pace of
import substitution. Focusing closely on the demand for chemical materials in strategic emerging
industries such as new energy vehicles next-generation information technology semiconductor
aerospace rail transit energy conservation and environmental protection and big health we will
accelerate the transformation and upgrading of advanced and applicable technologies increase efforts
to extend supplement and strengthen the supply chain and improve the level of product refinement
specialization and serialization. With the development of downstream industries the future market
development space for chemical new materials is vast.
2. PTA industry
my country is the largest producer and consumer of PTA and global production capacity is
concentrated in China. Under the competitive landscape of integrated industrial chain production
capacity is highly concentrated and the head effect is strengthened. Leading enterprises in the PTA
industry have strong market competitiveness in terms of single-unit scale stable production operation
material consumption energy consumption and product quality. The difference in cost and efficiency
and process iteration promote energy efficiency leaps and the industry energy efficiency benchmark
continues to move upward accelerating the elimination of backward production capacity in the PTA
industry. In the future the industry concentration will be further improved.China is the largest producer and consumer of PTA with global capacity increasingly concentrated
here. Under the competitive landscape of the integrated industrial chain production capacity is highly
concentrated with a pronounced "winner-takes-all" effect among industry leaders. Leading companies
in the PTA industry demonstrate formidable market competitiveness across multiple dimensions - the
scale of a single set of facility stable production and operation material consumption energy
consumption and product quality. The compounding advantages of cost-efficiency differentials and
production technique iteration have driven quantum leaps in energy efficiency performance
continuously resetting industry benchmarks. This dynamic is accelerating the phase-out of backward
production capacity and will further elevate market concentration in the coming years.
53 / 3522024 Annual Report 54
3. Polyester fiber
The chemical fiber industry is the core support for the stable development and continuous
innovation of the textile industry chain an internationally competitive advantage industry an
important component of the new materials industry and plays an important role in the construction of
a modern industrial system. The chemical fiber industry is accelerating its development towards
high-end intelligent green and branded products:
Improve the added value of conventional fibers enhance the production and application level of
high-performance fibers accelerate the development of bio based chemical fibers and degradable fiber
materials develop high-quality differentiated products and strengthen the development of application
technologies.Strengthen the research and application of intelligent equipment and promote the research and
application of equipment such as large-scale integration low energy intelligent logistics automatic
tube dropping and automatic packaging. Accelerate the research and application of automatic head
forming devices and online quality monitoring systems for polyester texturing equipment and improve
the intelligence level of spinning and winding equipment for polyester spandex and nylon. Promote
the application of emerging digital technologies and enhance the digitalization level of various links in
the industrial chain such as research and development design production and manufacturing
warehousing and logistics. Build an industrial Internet platform integrated with master data real-time
data applications identity resolution management information system and business intelligence
promote upstream and downstream enterprises in the industrial chain to realize resource data sharing
through the industrial Internet platform strengthen supply and demand docking and promote
collaborative development and collaborative application of the whole industry chain.Optimize energy structure strengthen clean production technology transformation and promote
key energy-saving and emission reduction technologies and promote energy-saving and low-carbon
development. Improve the level of recycling promote key technological breakthroughs and industrial
development in the high-value utilization of waste textiles accelerate the optimization of the industrial
structure and enterprise upgrading of recycled chemical fibers.Taking technology as the core and demand oriented increasing the supply of high-quality
products cultivating well-known fiber brands enhancing consumer awareness of Chinese fibers and
corporate brands and promoting the internationalization of Chinese fibers and corporate brands.(II) Development strategy
√适用□不适用
General development strategy: we are committed to providing quality fiber and creating a better
life for the society. Under the principle of “doing the right things at the right time” we adhere to the
development philosophy of “innovation coordination green and sharing” the operation concept of
“winning global markets with surpassing quality persistence and will” and the management ideal of
“people-centered scientific institutionalized and professional” foster a company spirit of “solidarityintegrity steadiness and innovation” increase the industrial innovation capacity improve industrial
structures and drive the Company into high-end intelligent green integrated and international
development.
1. The Company will take solid steps in “improving the upstream and enhancing thedownstream”. In the first place the Company will continue to strengthen the upstream industrial
platform to support the development of “refining+ethylene+coalification” underpinning the “bigchemicals” and implement “making up and enhancing the industrial chains” and “R&D andinnovations” reserving space and paving ways for the new downstream material businesses in the
future. On top of that the Company will redouble its efforts in the downstream businesses consolidate
traditional market strengths benchmark the breakthroughs in major new materials as the
development and upgrading of “new consumption” and “key&core technologies” nurture new leading
material business growth points in scale and make strides toward a world leading petrochemical new
material company that covers the whole industrial chain.
2. The Company will take unswerving steps in adopting integrated development strategy across
the board. The Company will focus on diversifying the specs of the products expanding capacity
54 / 3522024 Annual Report 55
differentiating the products through R&D technology and innovation upgrading and strive to realizethe industrial development goal of “industrial growth in bases scale production meticulous productsprofessional technology and sound management”.(III) Operational plan
√适用□不适用
The company will focus on the overall plan making precise efforts in deepening market synergy
and industrial layout strengthening innovation-driven quality and efficiency and consolidating
management foundations and risk prevention. With unity of purpose firm objectives and relentless
progress we will fully achieve the annual operational goals and ensure high-quality profit growth for
the company. The key tasks for the year will revolve around the following aspects:
1. Deepen market collaboration and industrial layout to ensure high-quality and efficient
company operations.Guided by the principle of "production based on sales and sales driven by production" we uphold
a customer-centric market-focused philosophy. In domestic markets we are expanding sales channels
while improving product and service quality to deliver greater value. International market development
remains a priority with coordinated global-local strategies creating new growth opportunities. At our
Changxing Island Industrial Park we optimize cross-divisional collaboration through dynamic
operational adjustments to maximize annual profitability. The polyester business unit focuses on
capturing high-value market segments through coordinated production-sales planning cost
optimization and technological upgrades.
2. Strengthen innovation-driven development and quality efficiency and cultivate the core
driving force of new quality productivity.Our innovation strategy is firmly market-oriented with R&D efforts concentrating on high-margin
product development and commercialization. Production and sales strategies are continuously
adjusted according to technological trends to enhance product value and market position. Digital
transformation initiatives leverage existing platforms to develop innovative technologies that
streamline production processes and improve management efficiency. Through lean management and
technological innovation we maintain the optimal balance between quality and cost ensuring both
product consistency and competitive pricing. This enables rapid response to market changes while
maximizing customer value.
3. Strengthen management foundation and risk control and build a solid system for high-quality
development.The "six major management systems" are built to support the implementation of the strategy. The
safety and environmental protection system establishes comprehensive safeguards for green
manufacturing while the financial system ensures rigorous capital control and regulatory compliance.Our talent development system focuses on leadership pipeline building and performance-driven
culture. Quality management achieves full-process standardization supported by digital systems
driving enterprise-wide transformation. The culture and brand system enhances employee
engagement and global brand building. We have established a unified legal-compliance-risk
management framework with enhanced digital monitoring capabilities to strengthen overall risk
prevention and control effectiveness.(IV) Potential risks
√适用□不适用
1. Risk of macroeconomic fluctuations
The products involved in the company's business field are closely related to the national economy
and people's livelihood and there is a high degree of linkage between industry development and the
prosperity of the national economy. The changes in the macro environment of China's national
economy export policies and consumer demand to a certain extent affect industry operating rates
product prices profitability and so on. The company closely monitors the macroeconomic situation
55 / 3522024 Annual Report 56
and market dynamics makes timely predictions adjusts business strategies and minimizes the risks
caused by macroeconomic fluctuations.
2. Risk of raw material price fluctuations
The production and operation of the company are greatly affected by the price changes of
upstream raw materials especially crude oil and coal. If the company's inventory and procurement
management as well as downstream product market price adjustments cannot effectively reduce or
digest the impact of raw material price fluctuations it may have adverse effects on the company's
business production and performance. The company will continue to monitor market changes in raw
materials conduct dynamic analysis and judgment choose appropriate procurement opportunities
control the fluctuation of raw material procurement prices and effectively control procurement costs;
Strengthen marketing management and reduce the adverse effects of raw material fluctuations on the
company.
3. Exchange rate risk
If the RMB continues to fluctuate substantially great uncertainties would be posed to the
Company’s exchange gains or losses export product prices denominated in foreign currencies raw
material prices and other operational factors. The Company will leverage forward foreign exchange
contracts and other methods to establish and improve the exchange rate hedging mechanism and
reduce the amount of foreign currency receipts and payments in order to reduce the impact of
exchange rate changes on the Company’s profitability.
4. Environmental and safety risks
Realizing high standards of safety production and environmental protection operation is the
lifeline benefit line and scenic line of enterprises. Environmental protection and safety issues remain
the top priority of enterprise risk management. The company has always adhered to the policy of
"safety first prevention oriented and comprehensive governance" strengthened essential safety
management fully implemented the main responsibility of enterprise safety deepened safety
standardization and HSE system management and continuously improved the ability of safety
production technology innovation and risk control. Standardize accident emergency management work
establish an emergency management system prevent and reduce the risk of emergencies and improve
the ability to respond to emergencies. With the enhancement of environmental awareness and the
tightening of government environmental protection requirements the company actively integrates
green and low-carbon production into enterprise development increases environmental investment
and meets the requirements of potentially increasingly strict environmental laws regulations and
rules in the future.(V) Others
□适用√不适用
VII. Explanation of the circumstances and reasons why the company did not disclose in
accordance with the guidelines due to special reasons such as non-applicability of
the guidelines or state secrets commercial secrets etc.□适用√不适用
56 / 3522024 Annual Report 57
Chapter 4 orporate Governance
I. Description of corporate governance
√适用□不适用
In strict accordance with the requirements of the Company Law the Securities Law the Code of
Corporate Governance for Listed Companies the Rules Governing the Listing of Stocks on Shanghai
Stock Exchange and other laws regulations and regulatory documents the Company continuously
improved the corporate governance structure established and improved a sound system of internal
management including General Shareholders Meetings the Board of Directors and the Supervisory
Committee to regulate its operations. The Company has formed a corporate governance structure with
clear rights and responsibilities effective checks and balances scientific decision-making and
coordinated operations among organs of authority decision-making organs supervisory organs and
the senior management teams. The structure ensures the effective implementation of the
decision-making power of the general shareholders’ meeting and the Board of Directors and the
supervisory power of the supervisory committee as well as efficient and compliant operations and
management of the senior management team. The company's board of directors has four special
committees for strategy and sustainable development audit nomination and compensation and
evaluation which provide consultation and suggestions for major decisions of the board of directors to
ensure professional and efficient decision-making. The company continues to pay attention to new
changes in regulatory laws and regulations effectively implements new regulatory policies and
requirements continuously strengthens risk prevention and control solidly promotes internal control
management carries out high-quality information disclosure follows the principles of truthfulness
accuracy completeness timeliness and fairness reduces the scope of insiders and ensures that all
shareholders have fair access to information. Actively carry out investor relations management work
treat all investors fairly with an honest and open attitude. Promote the construction of ESG system
strive to fulfill social responsibilities effectively safeguard the legitimate rights and interests of the
company and all shareholders and ensure the company's sustained and stable development.Whether there is any major difference between corporate governance and laws administrative
regulations and the provisions of the China Securities Regulatory Commission on the governance of
listed companies; if there is a major difference the reason should be explained
□适用√不适用
II. The specific measures taken by the company's controlling shareholders and actual
controllers to ensure the independence of the company's assets personnel
finances institutions and operations as well as the solutions adopted to address
factors affecting the company's independence work progress and subsequent
work plans
□适用√不适用
The situation of the controlling shareholders actual controllers and their affiliated entities engaging in
similar or related businesses as the company as well as the impact of significant changes in industry
competition or competition the measures taken to address them the progress of the solutions and
the subsequent resolution plans
□适用√不适用
III. Notes on General Shareholders Meetings
Meeting session Date of Inquiry index of the Disclosuremeeting designated website where date of Meeting resolution
57 / 3522024 Annual Report 58
the resolution is published resolution
publication
Log in to the Shanghai Deliberated and
Stock Exchange website approved 15 proposals
(www.sse.com.cn) and including the "2023
search"Hengli Annual Report" and the
2023 Annual April 30 Petrochemical 2023 May 1 2024 "2023 Profitgeneral meeting 2024 Annual General Meeting Distribution Plan".
Resolution
Announcement"
(Announcement No.:
2024-035)
Log in to the Shanghai Deliberated and
Stock Exchange website approved one proposal(www.sse.com.cn) and “Proposal on Applying
2024 The first search"Announcement on for the Registration and
extraordinary September the Resolution of the First September Issuance ofgeneral meeting 10 2024 Extraordinary General 11 2024 Medium-Term Notes”.of shareholders Meeting of Shareholders of
Hengli Petrochemical in
2024" (Announcement
No.: 2024-053)
Log in to the Shanghai Deliberated and
Stock Exchange website approved 15 proposals
(www.sse.com.cn) and including the "2023
2024 The search"Announcement on Annual Report" and the
second November the Resolution of the November "2023 Profitextraordinary 12 2024 Second Extraordinary 13 2024 Distribution Plan".general meeting General Meeting of
of shareholders Shareholders of Hengli
Petrochemical in 2024"
(Announcement No.:
2024-062)
Preferred shareholders whose voting rights have been restored request to convene an extraordinary
general meeting
□适用√不适用
Note to the general meeting of shareholders
√适用□不适用
During the reporting period the company held a total of three shareholder meetings including
one annual shareholder meeting and two extraordinary shareholder meetings. The convening and
procedures of the shareholder meetings complied with the provisions of laws administrative
regulations the "Rules of Shareholders' General Meetings of Listed Companies " and the company's
articles of association. The attendees and the convener of the meetings were qualified and valid. The
voting procedures and results of the shareholder meetings were legal and effective.
58 / 3522024 Annual Report 59
IV. Information about directors supervisors and senior executives
(I) Changes in shareholding and remuneration of current and resigned directors supervisors and senior executives within the reporting period
√适用□不适用
Unit: share
The total
pre-tax
Number of Number of Increase or Reason remuneration Whether to
Name Position Sex Age Position Position
shares held
at the shares held decrease of
for received from get paid at
(Note) start date end date at the end of shares during increase the company thebeginning of the year the year or within the company’sthe year decrease Reporting related party
Period (10
000 yuan)
Fan Chairman of
Hongwei the board Female 58 2022-04-27 2025-04-27 791494169 791494169 - 120 No
Li Director
Xiaoming General Male 44 2025-01-27 2025-04-27 4400 5900 1500 - NoManager
Director
Deputy
Li Feng GeneralManager Male 46 2022-04-27 2025-04-27 - - - 118.79 No
Board
Secretary
Director
Liu Dunlei DeputyGeneral Male 53 2022-04-27 2025-04-27 - - - 148.79 No
Manager
Gong Tao Director Male 45 2022-04-27 2025-04-27 - - - 107.57 no
Liu Jun IndependentDirector Male 61 2022-04-27 2025-04-27 - - - 20.00 no
59 / 3522024 Annual Report 60
The total
pre-tax
Number of Number of Increase or Reason remuneration Whether to
Position Position Position shares held shares held decrease of for received from get paid atName (Note) Sex Age start date end date at the increase the company thebeginning of at the end of shares duringthe year the year or within the company’sthe year decrease Reporting related party
Period (10
000 yuan)
Wu Independent
Yongdong Director Male 45 2022-04-27 2025-04-27 - - - 20.00 no
Xue Independent
Wenliang Director Male 46 2022-04-27 2025-04-27 - - - 20.00 no
Chairman of
Kang the
Yunqiu Supervisory Female 45 2022-04-27 2025-04-27 4640 4640 - - yes
Board
Shen
Guohua Supervisor Male 47 2022-04-27 2025-04-27 - - - 52.11 no
Tang Employee
Fangming Supervisor Male 45 2022-04-06 2025-04-27 - - - 39.70 no
Liu Deputy
Qianhan General Male 48 2022-04-27 2025-04-27 - - - 109.26 noManager
Deputy
General
Liu Manager
Xuefen Chief Female 53 2022-04-27 2025-04-27 - - - 158.06 no
Financial
Director
Zhang Deputy
Wenyu General Male 50 2023-08-07 2025-04-27 - - - 71.63 no
60 / 3522024 Annual Report 61
The total
pre-tax
Number of Reason remuneration Whether to
Position Position Position shares held
Number of Increase or for received from get paid at
Name (Note) Sex Age start date end date at the
shares held decrease of
beginning of at the end of shares during
increase the company the
the year the year the year
or within the company’s
decrease Reporting related party
Period (10
000 yuan)
Manager
Huang Deputy
Xudong General Male 58 2025-01-27 2025-04-27 - - - - noManager
Director
Wang General
Zhiqing Manager Male 63 2022-12-29 2025-01-26 - - - 180 no
(resigned)
total / / / / / 791503209 791504709 1500 / 1165.91 /
Note: Any discrepancies between the totals and the sum of individual line items in the tables are due to rounding differences.Name Main work experience
Born in 1967 Chinese nationality no overseas permanent residence college degree. From May 1994 to December 2001 he served as the
general manager of Wujiang Chemical Fiber Weaving Factory Co. Ltd.; from January 2002 he served as the director of Hengli Group Co. Ltd.;
Fan Hongwei from November 2002 to August 2011 he served as the director of Jiangsu Hengli Chemical Fiber Limited; from August 2011 to March 2016served as the vice chairman and general manager of Jiangsu Hengli Chemical Fiber Co. Ltd.; from March 2016 to August 2023 he has served as
the chairman of Jiangsu Hengli Chemical Fiber Co. Ltd. From March 2016 to December 2022 he served as the chairman and general manager
of the Company; since December 2022 he has served as the chairman of the Company.Born in 1981 Chinese nationality no overseas permanent residence bachelor's degree senior engineer. Served as workshop director assistant
Li Xiaoming general manager and deputy general manager of Hengli Petrochemical (Dalian) Refining Co. Ltd.; from March 2018 to October 2018 he servedas the lubricant workshop director of Hengli Petrochemical (Dalian) Refining Co. Ltd.; from October 2018 to March 2022 he served as the
assistant general manager of Hengli Petrochemical (Dalian) Refining Co. Ltd.; from March 2022 to January 2025 he served as the deputy
61 / 3522024 Annual Report 62
Name Main work experience
general manager of Hengli Petrochemical (Dalian) Refining Co. Ltd. Since March 2025 he has served as the general manager of the Company;
since January 2025 he has served as a director of the Company.Born in 1979 Chinese nationality no overseas permanent residence master's degree senior economist member of the third M&A financing
committee of China Association of Listed Companies. Served as project manager office director and deputy general manager of Jiangsu Hengli
Li Feng Chemical Fiber Co. Ltd.; served as deputy general manager and secretary of the board of directors of Jiangsu Hengli Chemical Fiber Co. Ltd.from August 2011 to March 2016; Since March 2016 he has served as director and deputy general manager of Jiangsu Hengli Chemical Fiber
Co. Ltd.; since March 2016 he has served as director deputy general manager and secretary of the board of directors of the Company.Born in 1980 Chinese nationality no overseas permanent residence master degree. He used to be a technician of Xianglu Petrochemical
(Xiamen) Co. Ltd. a monitor of Zhejiang Yisheng Petrochemical Co. Ltd. and an engineer of Hanbang (Jiangyin) Petrochemical Co. Ltd.; from
Gong Tao February 2011 to May 2015 years he was the director and manager of Hengli Petrochemical (Dalian) Co. Ltd.; from May 2015 to April 2024 he
has been the deputy general manager of Hengli Petrochemical (Dalian) Co. Ltd; Since April 2024 he has served as executive director and
general manager of Hengli Petrochemical (Dalian) Co. Ltd.. Since March 2018 he has served as a director of the Company.Born in 1972 Chinese nationality no overseas permanent residence bachelor degree. Served as assistant to the general manager and manager
of Qingdao Gaohe Co. Ltd.; successively served as FDY engineer workshop director and manager of Area E of the filament department of
Liu Dunlei Jiangsu Hengli Chemical Fiber Co. Ltd.; Since August 2012 he has served as the general manager of Jiangsu Hengke Advanced Materials Co.Ltd.; since March 2016 he has served as the Company's deputy general manager; since March 2018 he has served as the Company's director
and deputy general manager.Born in 1964 Chinese nationality no overseas permanent residence Ph.D. He used to be an associate professor professor and vice president
Liu Jun of Nanjing Normal University and served as a member of the party group vice president member of the judicial committee and judge ofYangzhou Intermediate People's Court. He is currently a professor at the Law School of Nanjing Normal University. Since April 2022 he has
served as an independent director of the Company.Born in 1980 Chinese nationality no overseas permanent residence bachelor degree Chinese certified public accountant. Served as senior
Wu project manager of Tianjian Certified Public Accountants (Special General Partnership) credit partner of Ruihua Certified Public Accountants
Yongdong (Special General Partnership) Zhejiang Branch Internal audit director and director of Hangzhou Shunwang Technology Co. Ltd. and financialdirector of Zhejiang Chuangke Network Co. Ltd. He is currently the financial director of Hangzhou Jierui Air Treatment Equipment Co. Ltd.Since April 2022 he has served as an independent director of the Company.Xue Born in 1979 Chinese nationality no overseas permanent residence Ph.D. once served as an associate researcher and master tutor at the
Wenliang Textile College of Donghua University and is now a professor and doctoral tutor at the Textile College of Donghua University. Since April 2022he has served as an independent director of the Company.Kang Yunqiu Born in 1980 Chinese nationality no permanent residence abroad bachelor degree senior economist. Served as general ledger accountant ofJiangsu Hengli Chemical Fiber Co. Ltd. financial manager of Jiangsu Boyada Textile Co. Ltd. financial director of Suzhou Wujiang Tongli Lake
62 / 3522024 Annual Report 63
Name Main work experience
Tourist Resort Co. Ltd. He is currently the assistant to the chief financial officer of Hengli Group Co. Ltd. and the director of Suzhou Wujiang
Tongli Lake Tourist Resort Co. Ltd. Since April 2022 he has served as the chairman of the Company's board of supervisors.Born in 1978 Chinese nationality no overseas permanent residence college degree. Previously served as deputy manager of the general ledger
Shen Guohua accountant and finance department of Jiangsu Hengli Chemical Fiber Co. Ltd.; from December 2017 to August 2021 he served as the managerof the Company's audit department. Since August 2021 he has served as the Company's audit director. Since April 2022 he has served as a
supervisor of the Company.Tang Born in 1980 Chinese nationality no overseas permanent residence bachelor degree senior engineer successively worked as a technician
Fangming engineer and director of the enterprise management department of Jiangsu Hengli Chemical Fiber Co. Ltd.; he is currently the assistant to thegeneral manager of Jiangsu Hengli Chemical Fiber Co. Ltd. Since April 2022 he has served as the employee supervisor of the Company.Born in 1977 Chinese nationality no overseas permanent residence master degree. Served as business representative deputy sales manager
Liu Qianhan and sales manager of Jiangsu Hengli Chemical Fiber Co. Ltd.; Deputy General Manager of Jiangsu Hengli Chemical Fiber Co. Ltd. from
September 2010 to now; current Deputy General Manager of the Company.Born in 1972 Chinese nationality no overseas permanent residence college degree. Worked as cashier and accountant of Wujiang Silk Sample
Factory; teller loan officer and accounting supervisor of Shengze Branch of China Construction Bank; from April 2004 to April 2012 manager of
Liu Xuefen the audit department of Jiangsu Hengli Chemical Fiber Co. Ltd; Since April 2012 he has served as the financial director of Hengli Petrochemical
(Dalian) Co. Ltd.; from May 2016 to March 2018 he has served as the Company's supervisor; he is currently the Company's deputy general
manager and financial director.Zhang Born in 1975 Chinese nationality no overseas permanent residence college degree. He has served as the sales manager of Jiangsu Hengke
Wenyu New Material Co. Ltd. and the sales director of Jiangsu Hengli Chemical Fiber Co. Ltd. He is currently the deputy general manager of JiangsuHengli Chemical Fiber Co. Ltd. and the deputy general manager of the Company.Born in 1967 Chinese nationality no overseas permanent residence bachelor's degree senior engineer. He served as the deputy director of
Huang the development planning department and the deputy director of the sales department of Sinopec Hainan Petrochemical Co. Ltd. and also
Xudong served as the deputy general manager of Hengli Petrochemical (Dalian) Refining Co. Ltd.; since September 2015 he has served as the deputygeneral manager of Hengli Petrochemical (Dalian) Refining Co. Ltd.; since January 2025 he has served as the deputy general manager of the
Company.Born in 1962 Chinese nationality no overseas permanent residence doctor of engineering professor-level senior engineer. Started working in
Wang 1983 served as chief engineer of SINOPEC Luoyang Petrochemical Complex; deputy manager and manager of China Petroleum and Chemical
Zhiqing Corporation Luoyang Branch; head of the refinery preparatory group at Sinopec Sales Co. Ltd. Guangxi Petroleum Branch; general manager of
(resigned) China Petroleum and Chemical Corporation Jiujiang Branch; director of Sinopec Group Jiujiang Petrol-Chemical Industry Factory; chairmangeneral manager and deputy secretary of Sinopec Shanghai Petrochemical Company Limited. From December 2022 to January 2025 he served
as the general manager of the Company; from June 2023 to January 2025 he served as the director of the Company currently resigned.
63 / 3522024 Annual Report 64
Other information
√适用□不适用
1. The total pre-tax remuneration received by directors supervisors and senior management during the reporting period only includes their remuneration during
their tenure.
2. The shareholding changes of Li Xiaoming during the reporting period occurred before he became the general manager and director and he has not bought or
sold the company's shares since taking office as the the general manager and director.
3. Due to the resignation of former Director and General Manager Wang Zhiqing the Company held the 24th Meeting of the 9th Board of Directors on January 27
2025 during which relevant proposals were reviewed and approved agreeing to appoint Li Xiaoming as General Manager of the Company and Huang Xudong as
Deputy General Manager. Subsequently the Company convened the 25th Meeting of the 9th Board of Directors on March 11 2025 and the First Extraordinary
Shareholders' Meeting of 2025 on March 26 2025 during which relevant proposals were reviewed and approved agreeing to elect Li Xiaoming as a
Non-Independent Director of the 9th Board of Directors of the Company. For details please refer to the "Announcement of the Resolution of the 24th Meeting of
the 9th Board of Directors of Hengli Petrochemical" (Announcement No.: 2025-006) "Announcement of the Resolution of the 25th Meeting of the 9th Board of
Directors of Hengli Petrochemical" (Announcement No.: 2025-009) and "Announcement of the Resolution of the First Extraordinary Shareholders' Meeting of
2025 of Hengli Petrochemical" (Announcement No.: 2025-011) published by the Company on designated information disclosure media on January 28 2025
March 12 2025 and March 27 2025 respectively.
64 / 3522024 Annual Report 65
(II) Positions of current and resigned directors supervisors and senior executives during the
reporting period
1. Employment in shareholders' entities
√适用□不适用
Positions held in
Staff name Name of shareholders' entity shareholders’ Start date of End date of
entity the term the term
Fan Hongwei Hengli Group Co. Ltd. Director January 2014
Fan Hongwei Hailaide InternationalInvestment Ltd. Director January 2014
Fan Hongwei Tak Shing Li InternationalHoldings Ltd. Director January 2014
Fan Hongwei Hengneng Investment Executive(Dalian) Co. Ltd. Director January 2017
Fan Hongwei Hengfeng Investment (Dalian) ExecutiveCo. Ltd. Director January 2017
Fan Hongwei Suzhou Huaer InvestmentCo. Ltd. Supervisor January 2014
Fan Hongwei Suzhou Shenglun InvestmentCo. Ltd. Supervisor January 2014
Assistant to the
Kang Yunqiu Hengli Group Co. Ltd. Chief Financial February 2014
Officer
Note to
employment
in Suzhou Huaer Investment Co. Ltd. and Suzhou Shenglun Investment Co. Ltd. are the
shareholders' secondary shareholders of the company
entity
2. Employment in other entities
√适用□不适用
Positions
Staff name Name of other entity held in Start date of End date of
other entity the term the term
Fan Hongwei Suzhou Tongli Lake ConferenceCenter Co. Ltd. Supervisor April 2015
Fan Hongwei Wujiang Huayi Investment Co. Ltd. Supervisor January 2014
Fan Hongwei Jiangsu Boyada Textile Co. Ltd. Director January 2014
Fan Hongwei Suzhou Kanglian Investment Co.Ltd. Supervisor October 2014
Fan Hongwei Suzhou Haolan Investment Co. Ltd. Supervisor October 2014
Fan Hongwei Suzhou Chundao Investment Co.Ltd. Supervisor October 2014
Fan Hongwei Suzhou Hanci Investment Co. Ltd. Supervisor October 2014
Fan Hongwei Suzhou Zhongkun Investment Co.Ltd. Supervisor October 2014
Fan Hongwei Wujiang Chemical Fiber WeavingFactory Co. Ltd. Supervisor January 2014
Fan Hongwei Hengli Import and Export Co. Ltd. Supervisor January 2014
65 / 3522024 Annual Report 66
Positions
Staff name Name of other entity held in Start date of End date of
other entity the term the term
Fan Hongwei Wujiang Tiancheng Real Estate Co.Ltd. Supervisor January 2014
Fan Hongwei Suzhou Kangjia PropertyManagement Co. Ltd. Supervisor January 2014
Fan Hongwei Suzhou Hengli Real Estate Co. Ltd. Supervisor January 2014
Fan Hongwei Suzhou Wujiang Tongli Lake TouristResort Co. Ltd. Director July 2015
Fan Hongwei Yingkou Henghan Investment Co.Ltd. Supervisor January 2014
Fan Hongwei Hengli Investment (Yingkou) Co.Ltd. Supervisor June 2014
Fan Hongwei Yingkou Comfort Investment Co.Ltd. Supervisor June 2014
Fan Hongwei Yingkou Lishun Real Estate Co. Ltd. Supervisor July 2014
Fan Hongwei Yingkou Lida Real Estate Co. Ltd. Supervisor July 2014
Fan Hongwei Yingkou Ligang Real Estate Co. Ltd. Supervisor July 2014
Fan Hongwei Zidian International Investment Co.Ltd. Director January 2014
Fan Hongwei Suzhou Hengli IntelligentTechnology Co. Ltd. Supervisor July 2017
Fan Hongwei Sichuan Hengli Real Estate Co. Ltd. Executive NovemberDirector 2019
Fan Hongwei Shanghai Yuanyuan EducationTechnology Co. Ltd. Director August 2020
Li Feng Suzhou Yikai Statistics Office Co. Ltd Supervisor May 2015
Liu Jun Guangxi Ruiyi New Energy Co. Ltd Director October 2020 October2024
Wu Hangzhou Jierui Air Treatment Chief December
Yongdong Equipment Co. Ltd. FinancialOfficer 2021
Kang Yunqiu Jiangsu Boyada Textiles Co. Ltd. Supervisor March 2024
Kang Yunqiu Hengli Industrial Investment November(Suzhou) Co. Ltd. Supervisor 2019
Kang Yunqiu Hengli (Suzhou) Technology R&DCo. Ltd. Supervisor July 2020
Kang Yunqiu Hengli Industrial Construction(Suzhou) Co. Ltd. Supervisor January 2021
Kang Yunqiu Suzhou Wujiang Tongli Lake TouristResort Co. Ltd. Director October 2022
Kang Yunqiu Hengli (Shenzhen) InvestmentGroup Co. Ltd Supervisor March 2024
Kang Yunqiu Suzhou Jiebang Real Estate Co. Ltd Supervisor November2023
Kang Yunqiu Suzhou Beifu Real Estate Co. Ltd Supervisor November2023
Kang Yunqiu Suzhou Anjing Real Estate Co. Ltd Supervisor November2023
Kang Yunqiu HengAn Internet (Beijing) DecemberInformation Technology Co. Ltd Supervisor 2023
66 / 3522024 Annual Report 67
Positions
Staff name Name of other entity held in Start date of End date of
other entity the term the term
Kang Yunqiu Suzhou Hengli System IntegrationCo. Ltd Supervisor
September
2020
Kang Yunqiu Suzhou Yuean Real Estate Co. Ltd Supervisor November2023
Description
of
employment
in other units
(III) Remuneration of directors supervisors and senior management
√适用□不适用
Decision-making procedures The compensation plan for the company's directors and the salary
for the remuneration of distribution plan for senior executives proposed by the
directors supervisors and Remuneration and Appraisal Committee and reported to the
senior executives Board of Directors for approval
Whether the director
withdraws when discussing
his own remuneration in the yes
board meeting
Specific details of the The Remuneration and Evaluation Committee evaluated the annual
recommendations made by performance of the company's directors and senior executives by
the Remuneration and understanding the company's main financial indicators and the
Evaluation Committee or the completion of business objectives reviewing the company's
special meeting of directors and senior executives' personal performance reports and
independent directors on the convening a meeting to review their remuneration plans. They
remuneration of directors concluded that the remuneration plan was reasonable and that the
supervisors and senior management team's remuneration was in line with market-based
management personnel salaries.Basis for Determination of According to the company's overall operating conditions and the
Remuneration of Directors annual salary level of previous years it is determined by comparing
Supervisors and Senior the director and executive salary levels of similar listed companies
Management and other companies in the same industry
Actual Payment of The payment has been completed according to the results of the
Remuneration to Directors performance appraisal. For details please refer to the "Statement
Supervisors and Senior of Shareholding Changes and Remuneration of Directors
Management Supervisors and Senior Management"
Total remuneration actually
received by all directors
supervisors and senior 11.6591 million yuan
management at the end of the
reporting period
(IV) Changes in Directors Supervisors and Senior Management of the Company
√适用□不适用
Name Positions held Changes Reason for change
Wang Zhiqing Director and GeneralManager Resignation Work Arrangement
67 / 3522024 Annual Report 68
Li Xiaoming Director Election Work Arrangement
Li Xiaoming General Manager Appointment Work Arrangement
Huang Xudong Deputy GeneralManager Appointment Work Arrangement
(V) Explanation of punishments received by securities regulatory agencies in the past three years
□适用√不适用
(VI) Others
□适用√不适用
V. Relevant information on board meetings held during the reporting period
Meeting session Date ofmeeting Meeting resolutions
Announcement of the
Resolution of the 16th 1. Proposal on Signing a Supplemental Agreement to the
Meeting of the Ninth 2024-1-12 Performance Compensation Agreement Subject to Effective
Board of Directors Conditions
Announcement of the
Resolution of the 17th 1. Proposal on Signing a Supplemental Agreement (II) to the
Meeting of the Ninth 2024-2-20 Performance Compensation Agreement Subject to EffectiveConditions
Board of Directors
Announcement of the
Resolution of the 18th
Meeting of the Ninth 2024-3-11
1. Action Plan for Improving Quality Boosting Efficiency and
Emphasizing Returns
Board of Directors
1. General Manager Work Report for 2023
2. Work Report of the Board of Directors for 2023
3. Annual Report 2023 and Abstract
4. Financial Final Account Report for 2023
5. Profit Distribution Plan for 2023
6. Proposal on the Remuneration of Directors and Directors
Serving as Senior Management in 2023
7. Proposal on the Remuneration of Non-Director Senior
Management in 2023
8. Proposal on the Estimated Situation of Daily Related
Announcement of the Transactions in 2024
Resolution of the 19th 2024-4-9 9. Proposal on Conducting Foreign Exchange DerivativesMeeting of the Ninth Trading Business in 2024
Board of Directors 10. Proposal on Carrying out Futures Hedging Business in 2024
11. Proposal on the 2024 Entrusted Investment Plan
12. Proposal on the 2024 Guarantee Plan
13. Proposal on Applying for Comprehensive Credit Line in
2024
14. Proposal on Renewal of Appointment of Accounting Firm
15. Environmental Social and Governance (ESG) Report in
2023
16. Company's 2023 Annual Internal Control Evaluation Report
17. Proposal on the Registration and Issuance of Short-term
Financing Bills
68 / 3522024 Annual Report 69
Meeting session Date ofmeeting Meeting resolutions
18. Proposal on the Restructuring and Listing of the Subsidiary
Kanghui New Material Technology Co. Ltd. in Compliance
with Relevant Laws and Regulations
19. Proposal on the Plan (Second Revised Draft) of Hengli
Petrochemical Co. Ltd. to Split and Restructure its Subsidiary
Kanghui New Material Technology Co. Ltd. for Listing
20. Proposal on the Restructuring and Listing of the Subsidiary
Kanghui New Material Technology Co. Ltd. in Accordance with
the "Listed Company Spin-off Rules (Trial Implementation)"
21. Proposal on the Completeness and Compliance of the
Legal Procedures for the Performance of This Spin-off and the
Validity of the Legal Documents Submitted
22. Proposal on Business Scope Amendment and Partial
Revision of the “Articles of Association”
23. Proposal on Convening the Annual General Meeting of
Shareholders of the Company in 2023
Announcement of the
Resolution of the 20th
Meeting of the Ninth 2024-4-22 1. First Quarter Report of 2024
Board of Directors
1. Full Text and Abstract of the 2024 Semi-annual Report
Announcement of the 2. Proposal on Terminating the Restructuring and Listing of
Resolution of the 21st the Subsidiary Kanghui New Material Technology Co. Ltd.Meeting of the Ninth 2024-8-22 3. Proposal on Applying for the Registration and Issuance of
Board of Directors Medium-Term Notes4. Proposal on Convening the First Extraordinary General
Meeting of Shareholders of the Company in 2024
Announcement of the 1. Third Quarter Report of 2024
Resolution of the 22nd 2. Proposal on Business Scope Expansion and Corresponding
Meeting of the Ninth 2024-10-24 Amendments to the “Articles of Association”
Board of Directors 3. Proposal on Convening the Second Extraordinary GeneralMeeting of Shareholders of the Company in 2024
Announcement of the
Resolution of the 23rd 2024-12-02 1. Proposal on Adding an Asset Management Institution of theMeeting of the Ninth Sixth Employee Stock Ownership Plan
Board of Directors
VI. Performance of duties by directors
(I) Participation of Directors in the Board of Directors and General Meetings of Shareholders
Participati
on in the
general
Whether Participation in the Board of Directors meetingDirecto
r's independ
of
ent shareholdname director ers
Numbe In-person Participatio Entruste Numbe Did not Attendanc
r of attendan n by means d r of attend e at
board ces of attendan absenc two general
69 / 3522024 Annual Report 70
meetin communicat ce es meetin meetings
gs this ion gs in of
year person sharehold
in a ers
row
Fan
Hongw No 8 8 4 0 0 No 2
ei
Wang
Zhiqing No 8 8 6 0 0 No 3
Li Feng No 8 8 2 0 0 No 3
Liu
Dunlei No 8 8 6 0 0 No 3
Gong
Tao No 8 8 7 0 0 No 3
Liu Jun Yes 8 8 5 0 0 No 3
Xue
Wenlia Yes 8 8 5 0 0 No 3
ng
Wu
Yongdo Yes 8 8 6 0 0 No 2
ng
Explanation for failing to attend two board meetings in person in a row
□适用√不适用
Number of board meetings held during the year 8
Including: Number of on-site meetings 0
Number of meetings held by means of
communication 2
Number of meetings held on site combined with
communication 6
(II) Situation where directors raise objections to relevant matters of the company
□适用√不适用
(III) Others
□适用√不适用
VII. Special committees under the board of directors
√适用□不适用
(I) Membership of special committees under the Board of Directors
Special committee Members
Audit Committee Wu Yongdong Liu Jun Gong Tao
Nominating Committee Liu Jun Xue Wenliang Liu Dunlei
Remuneration and Appraisal Committee Xue Wenliang Wu Yongdong Li Feng
Strategy Committee Fan Hongwei Li Xiaoming Xue Wenliang
70 / 3522024 Annual Report 71
(II) During the reporting period the Audit Committee held 6 meetings
Important Other
Date Conference content commentsand performance
suggestions of duties
The second annual audit communication meeting
was held to express opinions on matters such as
March 25 2024 the preliminary audit opinions to be issued by the Nil Nil
annual audit accountants on the company's
financial and accounting statements.Deliberate a series of matters including the
Company's 2023 Annual Financial Accounting
Statement the Summary Report of the Audit
Committee of the Board of Directors on the 2023
Annual Audit Work the Company's 2023 Annual
April 9 2024 Internal Control Evaluation Report the Proposal Nil Nilfor Renewing the Accounting Firm the 2023
Annual Report and its Abstract Report of the Audit
Committee of the Board of Directors on the
Performance of Supervisory Responsibilities of the
Accounting Firm in 2023 and issue written audit
opinions.Review the the Company's First Quarter Financial
April 22 2024 Accounting Statement for 2023 and the First Nil NilQuarter Report for 2023 and provide written
review comments.Review the Company's 2024 Semi-annual Financial
August 22 2024 Accounting Statement the 2024 Semi-annual Nil Nil
Report and provide written review opinions.Review the the Company's Third Quarter Financial
October 24 Accounting Statement for 2023 and the Third Nil Nil
2024 Quarter Report for 2023 and provide written
review comments.December 1 The first annual review communication meeting Nil Nil
2024 for the 2024 annual report was held.
(III) During the reporting period the Remuneration and Appraisal Committee held 1 meeting
Material Other
Date of meeting Meeting content commentsand performance
suggestions of dutiesDeliberate “the Proposal on the Remuneration ofApril 9 2024 Directors and Senior Management of the Company Nil Nilin 2023”
(IV) During the reporting period the Strategy and Investment Committee held 2 meetings
Important Other
Date Conference content commentsand performance
suggestions of duties
71 / 3522024 Annual Report 72
Important Other
Date Conference content commentsand performance
suggestions of dutiesDeliberate “Environmental Social and Governance
(ESG) Report in 2023” and “Proposal on theApril 9 2024 Restructuring and Listing of the Subsidiary Kanghui Nil Nil
New Material Technology Co. Ltd. in Compliancewith Relevant Laws and Regulations”Deliberate “Proposal on Terminating theAugust 22 2024 Restructuring and Listing of the Subsidiary Kanghui Nil NilNew Material Technology Co. Ltd.”
(V) Specific circumstances of objections
□适用√不适用
VIII. Explanation of the Board of Supervisors’ discovery of risks in the company
□适用√不适用
The Supervisory Committee had no objection to the supervisory matters during the reporting period.IX. Employees of the parent company and major subsidiaries at the end of the reporting
period
(I) Employees
The number of employees employed by the
parent company 32
The number of employees in the main subsidiary 34334
Total Number of Employees 38300
Number of retired employees whose parent
company and main subsidiaries need to bear the 121
expenses
Professional composition
Professional composition category Headcount
Production staff 28381
Sales staff 373
Technical staff 5821
Financial officer 258
Administrative staff 1441
Others 2026
Total 38300
Education level
Education level category Headcount
Doctor 16
Master 310
Undergraduate 6103
College and below 31871
Total 38300
72 / 3522024 Annual Report 73
(II) Remuneration Policy
√适用□不适用
The company has established a legal standardized and effective salary and job grading system
taking into account the internal and external labor market conditions regional and industry differences
and the value of employee positions. The principles guiding the system are "competitiveness externally
fairness internally and protection of employee development space." The grading and salary
determination are based on factors such as responsibilities capabilities and performance
contributions. Each subsidiary company refines and implements specific compensation plans
promotion channels and assessment indicators that are suitable for its own development based on its
business scope industry and regional factors.The company's compensation and benefits primarily include basic salary position-based salary
seniority-based salary piecework wages bonuses overtime pay night shift allowances management
allowances skill allowances etc. The company also provides social insurance and housing fund
contributions for employees offers free entry medical examinations free work meals holiday
allowances birthday cakes etc. Annual salary increases are determined based on market benchmarks
and the company's salary range while annual bonuses are distributed based on company performance
and individual achievements. The fair reasonable and competitive compensation system aims to
attract and retain outstanding talents provide employees with a sense of belonging and identity
motivate their sense of responsibility and enthusiasm and promote the mutual enhancement of
company and employee value.(III) Training plan
√适用□不适用
For details please refer to the relevant content in the "05 People-oriented and Giving Back to
Society" chapter of the "2024 Sustainable Development Report" disclosed by the Company on the
Shanghai Stock Exchange website (www.sse.com.cn) on April 17 2025.(IV) Labor outsourcing
□适用√不适用
X. Profit distribution or capital reserve conversion plan
(I) Formulation implementation or adjustment of cash dividend policy
√适用□不适用
During the reporting period there was no adjustment to the company's cash dividend policy. The
company strictly follows the relevant provisions of the "Articles of Association" and "Shareholder
Return Plan for the Next Five Years (2020-2024)".(II) Special notes on cash dividend policy
√适用□不适用
Does it comply with the provisions of the company's bylaws or requirements set by
the shareholders' meeting resolutions √是 □否
Are the dividend standards and ratios clear and explicit √是 □否
Are the relevant decision-making procedures and mechanisms complete √是 □否
Have the independent directors fulfilled their duties and played their expected roles √是 □否
Do minority shareholders have sufficient opportunities to express their opinions and
demands and have their legal rights and interests been adequately protected √是 □否
73 / 3522024 Annual Report 74
(III) If the company has made profits during the reporting period and the parent company has
distributable profits but no proposed cash dividend distribution plan has been put forward the
company should provide detailed disclosure of the reasons as well as the purpose and utilization
plan of the undistributed profits
□适用√不适用
(IV) Profit distribution and conversion of capital reserve into share capital during the reporting
period
√适用□不适用
Unit:ten-thousand-yuan Currency:RMB
Bonus shares for every 10 shares (shares) 0
Dividend per 10 shares (yuan) (tax included) 4.5
Number of conversions per 10 shares (shares) 0
Cash dividend amount (tax included) 316759.49
Net profit attributable to ordinary shareholders of listed
companies in the annual consolidated statement of 704356.82
dividends
Ratio of cash dividend amount to the net profit
attributable to ordinary shareholders of listed 44.97
companies in the consolidated statements (%)
Repurchase of shares in cash is included in the amount
of cash dividends 0
Total dividend amount (tax included) 316759.49
The ratio of the total dividend amount to the net profit
attributable to ordinary shareholders of the listed 44.97
company in the consolidated statement (%)
(V) Cash dividends in the last three fiscal years
√适用□不适用
Unit:ten-thousand-yuan Currency:RMB
Cumulative cash dividend amount (tax included) in the
last three fiscal years (1) 903933.93
Cumulative repurchase and write-off amount in the last
three fiscal years (2) 0
Cumulative amount of cash dividends and repurchases
and write-offs in the last three fiscal years (3) = (1) + (2) 903933.93
Average net profit in the last three fiscal years (4) 542215.84
Cash dividend payout ratio in the last three fiscal years
(%)(5)=(3)/(4)166.71
Net profit attributable to common shareholders of the
listed company in the most recent fiscal year in the 704356.82
consolidated financial statements
Undistributed profits at the end of the most recent fiscal
year in the parent company's financial statements 488154.73
Note: In 2022 the Company repurchased shares through centralized bidding for an amount of RMB
2000239525.27. Pursuant to the relevant provisions of "Shanghai Stock Exchange Self-Discipline
Supervision Guidelines for Listed Company No. 7-Share Repurchase" (revised in March 2025) this
74 / 3522024 Annual Report 75
repurchase amount is treated as cash dividends and included in the calculation of the cash dividend
distribution ratio for that year.XI. The status and impact of the company's equity incentive plan employee stock
ownership plan or other employee incentives
(I) Relevant incentives have been disclosed in temporary announcements and there is no progress
or change in subsequent implementation
√适用□不适用
Event Index
For details please refer to the "Announcement of Hengli
Petrochemical on the Addition of the Asset Management
Institution for the Sixth Employee Stock Ownership Plan"
Asset management institution of (Announcement No.: 2024-066) disclosed by the Company on the
the sixth employee stock website of the Shanghai Stock Exchange on December 3 2024
ownership plan has been added and the "Announcement of Hengli Petrochemical on theCompletion of the Addition of the Asset Management Institution
for the Sixth Employee Stock Ownership Plan" (Announcement
No.: 2025-008) disclosed by the Company on the website of the
Shanghai Stock Exchange on February 20 2025.For details please refer to the "Indicative Announcement of
The lock-up period of the third Hengli Petrochemical on the Expiration of the Lock-up Period for
employee stock ownership plan the Third Employee Stock Ownership Plan" (Announcement No.:
has expired 2024-068) disclosed by the Company on the website of the
Shanghai Stock Exchange on December 28 2024.(II) Incentives not disclosed in the temporary announcement or with follow-up progress
Equity incentive situation
□适用√不适用
Other notes:
□适用√不适用
Employee Stock Ownership Plan Status
□适用√不适用
Other incentives
□适用√不适用
(III) Share incentives granted to directors and senior executives during the reporting period
□适用√不适用
(IV) The establishment and implementation of the evaluation mechanism for senior management
personnel and the incentive mechanism during the reporting period
√适用□不适用
The Company has established a Remuneration and Assessment Committee and formulated
the "Implementation Rules for the Board Remuneration and Assessment Committee" to standardize
the procedures for determining executive compensation. The committee develops remuneration plans
or proposals based on the key scope of responsibilities importance of senior management positions
remuneration levels for comparable roles at peer companies. Additionally the committee reviews the
performance of senior management conducts annual performance appraisals. All executive
75 / 3522024 Annual Report 76
remuneration proposals put forward by the Remuneration and Assessment Committee are subject
to Board approval. The company continuously improves its long-term incentive policies based on actual
circumstances aiming to motivate senior management to fulfill their responsibilities diligently and
responsibly.XII. Internal control system construction and implementation during the reporting period
√适用□不适用
During the reporting period the company strictly adhered to various laws and regulations such as
the "Company Law " "Basic Norms for Enterprise Internal Control " "Listing Rules of the Shanghai
Stock Exchange" and "Self-regulatory Guidelines for Listed Companies of the Shanghai Stock Exchange
- Standard Operations". The company also followed internal control system standards to operate and
manage risks effectively. The company established a robust internal control management system
taking into account industry characteristics and actual business operations. The internal control system
was continuously optimized and improved to ensure the lawful and compliant operation and
management of the company asset security and the accuracy and integrity of financial reporting and
related information. These measures aimed to enhance operational efficiency actual results and
protect the interests of the company and all shareholders.Explanation on major deficiencies in internal control during the reporting period
□适用√不适用
XIII. Management and control of subsidiaries during the reporting period
√适用□不适用
In compliance with the requirements of the "Company Law " the company has established and
continuously improved a modern corporate system. Through the shareholders' meeting the board of
directors and the supervisory board effective management of subsidiary companies has been
implemented. The company has developed a comprehensive management system that covers its major
business areas achieving institutionalization of management practices. The management system has
also been disseminated to the subsidiary companies which have formulated their own management
systems based on it.XIV. Relevant information on the internal control audit report
√适用□不适用
According to the "Basic Norms for Enterprise Internal Control" and its supporting guidelines as
well as other internal control regulatory requirements the company in conjunction with its internal
control system and evaluation methods conducted an assessment of the effectiveness of internal
controls as of the benchmark date for the internal control evaluation report. The company prepared
the "2024 Annual Internal Control Evaluation Report" in accordance with the format content and
requirements specified by the China Securities Regulatory Commission (CSRC) and the Shanghai Stock
Exchange (SSE).The company engaged an external auditing firm Zhong Hui Certified Public Accountants LLP
(Special General Partnership) to perform an internal control audit. The audit firm issued a standard
unqualified opinion in the internal control audit report.Whether to disclose the internal control audit report: Yes
Type of internal control audit report opinion: Standard unqualified opinion
76 / 3522024 Annual Report 77
XV. The rectification of problems in the self-examination of the special action of listed
company governance
During the reporting period there were no significant differences between the company's
corporate governance status and the relevant regulations of the China Securities Regulatory
Commission (CSRC) regarding the governance of listed companies. The company will continue to
enhance its corporate governance level and improve its governance framework in accordance with
legal regulations and regulatory requirements. This ongoing effort aims to continuously enhance the
quality of the listed company.XVI.Others
□适用√不适用
77 / 3522024 Annual Report 78
Chapter 5 Environmental and Social Responsibility
I. Environmental information
Whether to establish relevant mechanisms for
environmental protection Yes
Investment in environmental protection funds
during the reporting period (unit: 3.75
hundred-million-yuan)
(I) Explanation on the environmental protection status of companies and their major subsidiaries
that belong to the key pollutant discharge units announced by the environmental protection
department
√适用□不适用
1. Sewage Information
√适用□不适用
The Company pays great heed to environmental protection and strictly acts upon the
Environmental Protection Law of the People’s Republic of China the Law of the People’s Republic of
China on Promoting Clean Production and the Law of the People’s Republic of China on the Prevention
and Control of Environmental Pollution by Solid Wastes and other relevant laws and regulations. The
key pollutant discharging companies and their subsidiaries mainly include Hengli Refining and Chemical
Hengli Chemical Hengli Petrochemical (Dalian) Hengli Petrochemical (Dalian) New Material Kanghui
New Materials Kanghui Dalian New Materials Hengli Chemical Fiber Deli Chemical Fiber Hengke New
Materials Jiangsu Xuanda Su Sheng Thermal Power and Hengli Petrochemical (Huizhou).During the reporting period each pollutant discharging subsidiary carried out self-monitoring of
their environmental impact and engaged professional third parties to test various pollutant factors. The
test results showed that the emission concentrations of various pollutants were in compliance with
national and local pollutant discharge standards and other relevant standards. The total discharge of
pollutants is under the required limit as outlined by operation permits. (Due to the switch between old
and new pollutant discharge licenses there were some changes in the approved total annual pollutant
discharge amount and discharge calculation methods of some key pollutant discharge subsidiaries.)
The specific sewage discharge information is as follows:
1. Hengli Petrochemical Refining
Type of Main Emissi Numb The Emission Total Approv Pollutant Exces
polluta Pollutant on er of distrib Concentr emissi ed Emission sive
nt s and metho disch ution ation ons total Standards emiss
Characte d arge of (tons/y emissi Executed ion
ristic ports dischar ear) ons situat
Pollutant ge (tons/y ion
s ports ear)
Wastew
ater 1 / 2322148 / /volume
Contin DWO1 DB211627-
Waste uous 1 2008
water Chemica emissi dischar
None
l oxygen ons 1 ge port 24.42mg
Liaoning
/L 56.91 237.42 Provincedemand Comprehen
sive
Wastewate
78 / 3522024 Annual Report 79
r Discharge
Standard
GB31570-2
015
Ammoni Petroleum
a 1 0.08mg/ 0.19 17.97 Refining
nitrogen L IndustryPollutant
Emission
Standard
GB31571-2
015
Total
phospho 1 0.24mg/
Petrochemi
L 0.55 / cal Industryrus Pollutant
Emission
Standard
DB211627-
2008
Liaoning
Total 1 7.94mg/
Province
nitrogen L 18.53 70.9 Comprehensive
Wastewate
r Discharge
Standard
Sulfur 14 12.86mg 1470.2 2449.3 GB31570-2dioxide /m3 4 8 015
Nitrogen 30.43mg 5091.5 Petroleum
oxides 14 /m3 2863.2 4 Refining
Particula Industry
te 14 1.30mg/m3 321.45 1051.2
Pollutant
matter Emission
Standard
GB31571-2
015
Organi Petrochemi
zed cal IndustryExhaust emissi / Pollutant
ons Emission
Non-met Standard
hane 15 5.16mg/ 214.16 2785.5
DB21/T313
hydrocar m3 7 4-2019
bons Liaoning
Province
Coal-fired
Power
Plant Air
Pollutant
Emission
Standard
79 / 3522024 Annual Report 80
2. Hengli Chemical
Type of Main Emissio Numb The Emission Total Approv Pollutant Exces
polluta Pollutant n er of distribu Concentr emissi ed Emission sive
nt s and metho discha tion of ation ons total Standards emissi
Characte d rge dischar (tons/y emissi Executed on
ristic ports ge ear) ons situati
Pollutant ports (tons/y on
s ear)
Wastewa
ter 1 / 173723 / /
volume 2
DB21
8 Liaoning
Chemical Province
oxygen 1 25.05mg Compreh
demand /L
48.68 204.3 ensive
Wastewat
er
Discharge
Standard
GB
15
Ammoni Petroche
a 1 0.20mg/L 0.39 32.7 mical
nitrogen Industry
Contin DW001 PollutantWastew uous dischar Emissionater emissio
ns ge port
Standard None
DB21
8 Liaoning
Total Province
phospho 1 0.16mg/L 0.28 / Compreh
rus ensive
Wastewat
er
Discharge
Standard
DB21
8 Liaoning
Province
Total Compreh
nitrogen 1 8.85mg/L 15.15 61.3 ensive
Wastewat
er
Discharge
Standard
Exhaust Sulfur Organiz 5 / 3.79mg/ 39.31 116.5 GB
80 / 3522024 Annual Report 81
dioxide ed m3 31571-20
Nitrogen emissio 38.24mg 15
oxides ns 6 /m3 511.43 974.4 Petroche
Particlat 0.49mg/ mical
e matter 20 m3 13.21 149 Industry
Pollutant
Emission
Standard
GB
15
Pollutant
Emission
Standard
for
Non-met Synthetic
hane twent 4.21mg/ Resin
hydrocar y one m3 47.76 745.6 Industry
bons GB
20
Pollution
Control
Standard
for
Hazardou
s Waste
Incinerati
on
3. Hengli Petrochemical (Dalian)
Type of Main Emissio Numb The Emission Total Approv Pollutant Exces
polluta Pollutant n er of distribu Concentr emissi ed Emission sive
nt s and metho discha tion of ation ons total Standards emissi
Characte d rge dischar (tons/y emissi Executed on
ristic ports ge ear) ons situati
Pollutant ports (tons/y on
s ear)
Wastewa
ter 1 / 173723 / /
volume 2
DB21
Contin 1627-200
Wastew uous DW001 8 Liaoning
ater emissio dischar Province NoneChemical
oxygen ns
ge port
1 25.05mg 48.68 204.3 Compreh
demand /L ensive
Wastewat
er
Discharge
Standard
81 / 3522024 Annual Report 82
GB
15
Ammoni Petroche
a 1 0.20mg/L 0.39 32.7 mical
nitrogen Industry
Pollutant
Emission
Standard
DB21
8 Liaoning
Total Province
phospho 1 0.16mg/L 0.28 / Compreh
rus ensiveWastewat
er
Discharge
Standard
DB21
8 Liaoning
Province
Total 1 8.85mg/L 15.15 61.3 Comprehnitrogen ensive
Wastewat
er
Discharge
Standard
Sulfur 3.79mg/ GB
dioxide 5 m3 39.31 116.5 31571-20
Nitrogen 38.24mg 15
oxides 6 /m3 511.43 974.4 Petroche
Particlat 0.49mg/ mical
e matter 20 m3 13.21 149 Industry
Pollutant
Emission
Standard
GB
Organiz 31572-20
Exhaust ed 15emissio / Pollutant
Non-met ns Emission
hane twent 4.21mg/ Standard
hydrocar y one m3 47.76 745.6 for
bons Synthetic
Resin
Industry
GB
20
Pollution
Control
82 / 3522024 Annual Report 83
Standard
for
Hazardou
s Waste
Incinerati
on
4. Hengli Petrochemical (Dalian) New Material
Type Main Emissi Numb The Emission Total Approv Pollutant Excess
of Pollutant on er of distribu Concentr emissio ed total Emission ive
polluta s and metho discha tion of ation ns emissio Standard emissi
nt Characte d rge dischar (tons/y ns s on
ristic ports ge ports ear) (tons/y Executed situati
Pollutant ear) on
s
Wastewat
er volume 1 / 4397033 / /
GB
5
Chemical Petroche
oxygen 1 20.61mg/L 84.47 178.97 mical
demand Industry
Pollutant
Emission
Standard
GB
5
Ammonia Petroche
nitrogen 1 0.18mg/L 0.93 28.63 micalIndustry
Continu Pollutant
ous DW011 EmissionWastew discharg Standard
ater emissions e port DB21 None
Liaoning
Total Province
phosphoru 1 0.08mg/L 0.41 / Comprehe
s nsiveWastewat
er
Discharge
Standard
DB21
Liaoning
Province
Total 1 4.36mg/L 18.31 53.69 Comprehenitrogen nsive
Wastewat
er
Discharge
Standard
Exhaust Sulfur Organiz /dioxide ed 4 5.17mg/m3 41.37 188.12
GB
83 / 3522024 Annual Report 84
Nitrogen emissio 12.28mg/m
oxides ns 4 3 276.12 719.94
5
Petroche
Particulate mical
matter 25 1.75mg/m3 28.53 209.45 Industry
Pollutant
Emission
Standard
DB21/T
Non-meth Liaoning
ane
hydrocarb 28 7.66mg/m3 94.26 1029.13
Province
Coal-fired
ons Power
Plant Air
Pollutant
Emission
Standard
5. Kanghui New Material
Type of Main Emission Number The Emission Total Approved Pollutant
pollutant Pollutants method of distribution Concentration emissions total Emission
and discharge of (tons/year) emissions Standards
Characteristic ports discharge (tons/year) Executed
Pollutants ports
Wastewater
volume / 399621 /
Chemical
oxygen 15.496mg/L 5.838 57.2287 Comprehensive
demand
Indirect Factory sewageWastewater Ammonia 1
nitrogen emissions South Side 0.176mg/L 0.072 16.8129
discharge
standard
Total DB21/1627-2008
nitrogen 12.2mg/L 4.83 33.28
Total
phosphorus 0.7mg/L 0.28 /
Particulate
matter 5.175mg/m3 2.689 75.8875 Synthetic resin
Sulfur industry
Exhaust dioxide Direct Each
3.065mg/m3 1.616 20.23
36 pollutantemissions workshop emission
Nitrogen 35.362mg/m3 18.202 89.71 standardoxides GB31572-2015
VOCs 11.25mg/m3 28.041 254.3136
6. Kanghui Dalian New Material
Type of Main Emissi Numb The Emission Total Approv Pollutant Exces
polluta Pollutant on er of distributi Concentr emissi ed Emission sive
nt s and meth discha on of ation ons total Standards emiss
Characte od rge discharg (tons/y emissi Executed ion
ristic ports e ports ear) ons situati
Pollutant (tons/y on
s ear)
84 / 3522024 Annual Report 85
Wastew Liaoning
ater / 55695 / Province
volume Compreh
Chemica Relying ensive
l oxygen on the 27.901m 1.2626 4.15 Wastewat
demand main g/L 46 er
Indire wastewa Discharge
Waste Total ct ter 0.2070 Standard
water nitrogen emissi 1 discharg 6.31mg/L 64 0.42 DB21/162
ons e outlet 7
Ammoni of Hengli
a Petroche 0.035mg 0.0058
nitrogen mical /L 63
0.13 None
Total
phospho / 0.0062
Synthetic
/ resin
rus 64 industry
Particula Each pollutant
te worksho 4.4745m 0.1159 0.342 emission
matter Direct p and g/m3 26 standard
Exhaust emissi 13 auxiliary GB31572
ons feeding
VOCs 3.18mg/ 0.0331worksho m3 66 5.52
p
7. Hengli Chemical Fiber
1) Main factory area
Type of Main Emissio Numb The Emission Type Main Emission Numb
polluta Pollutan n er of distrib Concentr of Pollutan method er of
nt ts and method disch ution ation pollut ts and disch
Characte arge of ant Characte arge
ristic ports dischar ristic ports
Pollutan ge Pollutan
ts ports ts
Wastew Wujiang
ater 1 / 42483.52 132000 Shengzevolume Water
Treatment
Continu Developm
ous ent Co.indirect Ltd.Waste emissio In the (Nanma
water n to factory CommunitChemica municip area
l oxygen 13.73mg 0.835
y None
al waste 1 /L 1 6.02 Comprehedemand water nsive
plant Sewage
Treatment
Plant)
Takeover
Standards
Exhaust Sulfur Continu 7 In the 0.897mg 3.460 17.883 Boiler Air
85 / 3522024 Annual Report 86
dioxide ous factory /m3 9 Pollutant
Nitrogen direct area7 26.694m 57.51
Emission
oxides emissio g/m3 83 64.376 Standard
Particula n DB32/438
te environ 7 1.349mg 4.957/m3 1 10.329
matter ment
Comprehe
nsive
Non-met Emission
hane 4 2.263mg 3.067 15.708 Standardhydrocar /m3 6 of Air
bons Pollutants
DB32/404
2) Daxie Village Factory
Type of Main Emissio Numb The Emission Type Main Emission Numb
polluta Pollutant n er of distribu Concentr of Pollutant method er of
nt s and metho discha tion of ation pollut s and discha
Characte d rge dischar ant Characte rge
ristic ports ge ristic ports
Pollutant ports Pollutant
s s
Wastew Contin
ater uous 1 / 30783 63360 Comprehvolume indirect ensive
emissio
Waste n to In the
Wastewat
water factory
er
Chemica munici Discharge
None
l oxygen pal
area
1 8.81mg/L 0.517 2.89 Standard
demand wastew GB8978-1
ater 996
plant
8. Hengke Advanced Materials
Type of Main Emissi Numb The Emission Total Approv Pollutant Exces
polluta Pollutan on er of distribu Concentr emissi ed Emission sive
nt ts and meth disch tion of ation ons total Standards emiss
Characte od arge dischar (tons/y emissi Executed ion
ristic ports ge ear) ons situat
Pollutan ports (tons/y ion
ts ear)
Wastew 72795. "Waterater / /
Indire 97 Qualityvolume
Waste Chemica ct
In the Standard for
water emissi 1 factory 21.59mg Sewage Nonel oxygen ons area /L 1.37 361.25 Dischargedemand into Urban
Ammoni 0.44mg/ 0.035 1.21 Sewers
86 / 3522024 Annual Report 87
a L GB/T31962-
nitrogen 2015"
Total "Synthetic
phospho 0.15mg/ 0.017 0.44 Resin
rus L Industry
Pollutant
Emission
Standard
GB31572-20
15"
"Textile
dyeing and
finishing
industry
water
pollutant
discharge
standard
GB4287-201
Total 6.03mg/ 2"
nitrogen L 0.374 9.41 Petrochemic
al Industry
Pollutant
Emission
Standard
GB31571-20
15
Comprehens
ive
Wastewater
Discharge
Standard
GB8978-199
6Sulfur 0.98mg/ 1.901 69.84 《 Boiler Airdioxide m3 PollutantNitrogen 3.97mg/ Emission
oxides 1 m3 8.194 262.05 Standard
3.75mg/ DB32/4385-Particles m3 7.675 34.94 2022》
"Synthetic
Resin
Direct Industry
Exhaust emissi Pollutant
ons Emission
Standard
VOCs 1 2.91mg/ 5.776 28.86 GB31572-20m3 15"
Petrochemic
al Industry
Pollutant
Emission
Standard
87 / 3522024 Annual Report 88
GB31571-20
15
"Comprehen
sive
Emission
Standards
for Air
Pollutants
DB32/4041-
2021"《 EmissionStandard of
Odor
Pollutants
GB14554-93
》
9. Jiangsu Xuanda
Type of Main Emissi Numb The Emission Total Approv Pollutant Exces
polluta Pollutan on er of distrib Concentr emissi ed Emission sive
nt ts and metho disch ution ation ons total Standards emiss
Characte d arge of (tons/y emissi Executed ion
ristic ports dischar ear) ons situat
Pollutan ge (tons/y ion
ts ports ear)
Wastew
ater / 33790
"Water
/ Quality
volume 3 Standard for
Chemica Sewage
l oxygen 35.85mg Discharge
demand /L
14.97339.32
into Urban
Ammoni Sewers
a 0.5mg/L 0.207 30.49 GB/T31962-
nitrogen 2015"
Total "Synthetic
phospho 1.83mg/L 0.067 5.43
Resin
rus Indire Industry
Waste ct Sewag Pollutant
water emissi 1 e Emission None
ons station StandardGB31572-20
15"
"Textile
dyeing and
Total 2.78mg/ 1.16 29.11 finishingnitrogen L industry
water
pollutant
discharge
standard
GB4287-201
2"
88 / 3522024 Annual Report 89
Petrochemic
al Industry
Pollutant
Emission
Standard
GB31571-20
15
Comprehens
ive
Wastewater
Discharge
Standard
GB8978-199
6Sulfur 0.86mg/ 0.73 141.71 《 Boiler Airdioxide m3 PollutantNitrogen 11.22mg Emission
oxides /m3 9.52 59.2 Standard
Partiulat DB32/4385-e 5.25mg/ 4.42 23.14 2022》
matters m3 "Synthetic
Resin
Industry
Pollutant
Emission
Standard
GB31572-20
15"
Direct Petrochemic
emissi Heat al IndustryPollutant
Exhaust ons transfeafter 1 r Emission None
treat station Standard
ment GB31571-20
VOCs 2.03mg/ 1.71 35.439
15
m3 4 "Comprehen
sive
Emission
Standards
for Air
Pollutants
DB32/4041-
2021"《 EmissionStandard of
Odor
Pollutants
GB14554-93
》
10. Deli Chemical Fiber
89 / 3522024 Annual Report 90
Type of Main Emissi Numb The Emissi Type of Main Emission Numb
polluta Pollutan on er of distrib on polluta Pollutan method er of
nt ts and meth disch ution Concentr nt ts and disch
Characte od arge of ation Charact arge
ristic ports dischar eristic ports
Pollutan ge Pollutan
ts ports ts
Wastew Synthetic
ater 1 / 8565 130982.volume 2.626 5
resin
industry
Chemica pollutant
l oxygen 1 45.8135 3.70598 50.6902 emission
demand mg/L 6 standard
Ammoni GB31572-
a 1 1.387mg 0.11110 1.2707 2015
nitrogen /L 7 Comprehe
Total nsive
phospho 1 / 0.01331 0.1878 sewage
rus 5 discharge
standard
GB8978-1
996
Emission
Standard
Waste for
water AntimonyPollutants
in Textile
Indire Dyeing
ct and
emissi / Finishing None
Total ons 1 / 0.09158 1.7736 Wastewatnitrogen er
DB32/343
Water
quality
standard
for sewage
discharge
into urban
sewers
GB/T3196
Sulfur 1 1.053mgdioxide /m3 0.42467 13.2
Comprehe
nsive
Nitrogen 6.937mg Emission
oxides 1 /m3 2.83148 22.706 Standard
Exhaust Particula of Air
te 1 0.421mg 0.16498 3.113 Pollutants
matters /m3 DB/32404
Non-met Boiler Air
90 / 3522024 Annual Report 91
hane 1 / 1.29428 14.45 Pollutant
hydrocar 5 Emission
bons Standard
DB32/438
Odor
pollutant
emission
standard
GB14554-
93
Synthetic
resin
industry
pollutant
emission
standard
GB31572-
2015
Volatile
organic
compound
unorganiz
ed
emission
control
standard
GB37822-
2019
11. Susheng Thermal Power
Type of Main Emissi Numb The Emission Total Approv Pollutant Exces
polluta Pollutan on er of distribu Concentr emissio ed Emission sive
nt ts and meth disch tion of ation ns total Standards emiss
Characte od arge dischar (tons/y emissi Executed ion
ristic ports ge ear) ons situat
Pollutan ports (tons/y ion
ts ear)
Comprehen
Wastew Indire sive sewageWaste ct
water ater emissi 1 /
1665.5 11000 discharge
volume 6 standardons GB8978-19
96
Sulfur 1.06 8.71mg/ 43.163 305.24 Emission None
dioxide m3 056 1 Standards
Nitrogen Direct 27.87mg 137.40 436.05 for Air
Exhaust oxides emissi 2 /m3 2772 9 Pollutants
Pariculat ons from
e 0.93mg/ 5.1699m3 86 86.212
Coal-fired
matters Power
91 / 3522024 Annual Report 92
Plants
DB32/4148
—2021
12. Hengli Petrochemical (Huizhou)
Type of Main Emissio Numb The Emission Total Approv Pollutant Exces
polluta Pollutant n er of distribu Concentr emissi ed Emission sive
nt s and metho discha tion of ation ons total Standards emiss
Characte d rge dischar (tons/y emissi Executed ion
ristic ports ge ear) ons situat
Pollutant ports (tons/y ion
s ear)
Wastew
ater / 35126 52462 /
volume 96 08
Chemica
l oxygen 42.17mg
Petrochem
demand /L
136.58 314.84 ical
Industry
Ammoni Pollutant
a Contin DWO0 0.35mg/L 0.29 41.98 Emission
Waste nitrogen uous 4 Standards
water emissio 1 dischar (GB31571-
ns ge port 2015)
Guangdon
g Province
Total 15.79mg Water
nitrogen /L 56.67 157.39 Pollutant
Emission
Limits
(DB44/26-
2001)
Sulfur 4 1.5mg/m Table 5 Nonedioxide 3 1.67 6.57 Emission
Nitrogen 21.5mg/ limits for
oxides 4 m3 31.98 118.97 process
heating
furnaces in
the
Petrochem
Particula Organi ical1.87mg/
Exhaust te zed 27 20.95 39.7
Industry
matters emissio
/ m3 Pollutant
ns Emission
Standard
(GB31571-
2015)
Volatile Table 5 of
organic 31 10.2mg/
the
compou m3 62.72 383.46 Petrochem
nds icalIndustry
92 / 3522024 Annual Report 93
Pollutant
Emission
Standard
(GB
5)
Volatile Fugitiv
organic e
compou Emissio / / / 4.35 112.77 / None
nds ns
2. Construction and operation of pollution prevention and control facilities
√适用□不适用
During the reporting period the above companies who discharged pollutants all built their
pollutant control facilities following the requirements for environmental impact assessment of the
construction project. Currently the facilities are under normal operation. The companies carry out
daily maintenance of the facilities to ensure their efficient and stable operations of keeping emissions
within the standards.
3. Environmental impact assessment of construction projects and other environmental protection
administrative licensing
√适用□不适用
During the reporting period the company's construction and renovation projects have been
accompanied by the preparation of environmental impact assessment reports by relevant construction
units. These reports have received approval from the corresponding ecological and environmental
departments granting permission for construction. Various pollution prevention and control facilities
(including those for air water noise and solid waste classification and disposal) and environmental
management during the construction period have been implemented in accordance with the approved
content of the environmental impact assessment report. The company strictly adheres to the "design
construction and production simultaneously" system for environmental protection.
4. Emergency plan for environmental emergencies
√适用□不适用
company Plan Name Filing unit Registration Number“Hengli Petrochemical (Dalian) Dalian WafangdianHengli Refining Co. Ltd. Emergency plan (Changxing IslandPetrochemical for environmental emergencies “ Economic Zone) 210281-2024-031-HRefining Ecological
Environment Branch“Hengli Petrochemical (Dalian) Dalian WafangdianHengli Co. Ltd. Emergency plan for (Changxing IslandPetrochemical environmental emergencies “ Economic Zone) 210281-2024-129-H
(Dalian) Ecological
Environment BranchHengli “Hengli Petrochemical (Dalian) Dalian WafangdianPetrochemical Chemical Co. Ltd. Emergency plan (Changxing Island 210281-2022-069-HChemical for environmental emergencies “ Economic Zone)Ecological
93 / 3522024 Annual Report 94
Environment BranchHengli “Hengli Petrochemical (Dalian) Dalian WafangdianPetrochemical New Material Co. Ltd. Emergency (Changxing Island
(Dalian) New plan for environmental Economic Zone) 210281-2023-064-HMaterial emergencies “ EcologicalEnvironment BranchKanghui New “Kanghui New Material EnvironmentalMaterial Technology Co. Ltd. Emergency Protection Bureau of
plan for environmental Administrativeemergencies “ Committee of Yingkou 210881-2024-047-HXianrendao Economic
Development ZoneKanghui Dalian “Kanghui Dalian New Material Dalian WafangdianNew Material Technology Co. Ltd Emergency (Changxing Island
Plan for environmental Economic Zone) 210281-2022-034-Lemergencies” Ecological
Environment BranchHengli Chemical “Jiangsu Hengli Chemical Fiber Suzhou WujiangFiber Co. Ltd. Emergency plan for Ecological 320509-2022-042-Menvironmental emergencies “ Environment Bureau“Daxie Village Factory of Jiangsu Suzhou WujiangHengli Chemical Fiber Co. Ltd. Ecological
Emergency plan for Environment Bureau 320509-2023-129-Lenvironmental emergencies”Deli Chemical “Jiangsu Deli Chemical Fiber Co. Suqian SuchengFiber Ltd. Emergency plan for Ecological 321302-2023-025-Lenvironmental emergencies “ Environment BureauHengke “Jiangsu Hengke Advanced Nantong TongzhouAdvanced Materials Co. Ltd. Contingency Ecological
Materials plans for environmental Environment Bureau
320683-2023-090-Hemergencies”“Jiangsu Xuanda PolymerMaterials Co. Ltd. Contingency Nantong TongzhouJiangsu Xuanda plans for environmental Ecological 320683-2023-112-Hemergencies” Environment BureauSusheng Thermal “Suzhou Susheng Thermal Power Suzhou WujiangPower Co. Ltd. Emergency plan for Ecological 320509-2023-138-Menvironmental emergencies “ Environment BureauHuizhou EcologicalHengli “Hengli Petrochemical (Huizhou) Environment BureauPetrochemical Co. Ltd. Emergency plan for Daya Bay Economic 441304-2022-0023-H(Huizhou) environmental emergencies” and TechnologicalDevelopment Zone
Branch
5. Environmental Self-Monitoring Program
√适用□不适用
The company's key pollutant-emitting subsidiaries under its jurisdiction have developed
environmental monitoring plans in accordance with relevant national self-monitoring standards and
environmental management system requirements. These plans are submitted to the local
environmental regulatory authorities for record-keeping while applying for pollutant discharge permits.The company regularly organizes its environmental monitoring station to conduct tests on various
94 / 3522024 Annual Report 95
pollutants emitted from each workshop's discharge outlets. For projects where the company lacks
testing capabilities it entrusts third-party institutions with environmental monitoring qualifications to
conduct emission testing for specific pollutants such as wastewater and exhaust gases. The company
assigns dedicated personnel to inspect and aggregate data on various pollutant indicators. Additionally
data analysis is performed to provide timely feedback to relevant departments as a basis for adjusting
process parameters and ensuring compliance with emission standards. This systematic approach
ensures that the company achieves standardized emissions.
6. Administrative penalties due to environmental issues during the reporting period
□适用√不适用
7. Other environmental information that should be disclosed
□适用√不适用
(II) Explanation on environmental protection of companies other than key pollutant discharge
entities
√适用□不适用
1. Cases of receiving administrative penalties due to environmental issues
□适用√不适用
2. Disclose other environmental information with reference to key pollutant discharge entities
□适用√不适用
3. Reasons for not disclosing other environmental information
√适用□不适用
The company places great importance on environmental protection and strictly implements the
"Environmental Protection Law of the People's Republic of China." It is committed to complying with
national and local environmental laws and regulations industry technical specifications and
government management provisions. The company actively carries out daily environmental
management work. Non-production subsidiaries under the company have minimal impact on the
environment with their energy consumption and emissions mainly concentrated in daily operational
and office activities. The company's subsidiaries actively assume corporate environmental
responsibilities and strictly adhere to various environmental policies. They effectively implement
environmental measures to protect the environment.(III) Relevant information that is conducive to protecting the ecology preventing pollution and
fulfilling environmental responsibilities
√适用□不适用
For details please refer to the relevant content in the chapter "02 Energy Conservation and
Emissions Reduction Permanent Protection of Green" of the “2024 Sustainable Development Report”
disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on April
172025.
(IV) Measures and effects taken to reduce its carbon emissions during the reporting period
Whether to take carbon reduction Yes
95 / 3522024 Annual Report 96
measures
Reduction of carbon dioxide equivalent
emissions (unit: tons) Not applicable
1. Clean Energy Power Generation: In 2024 we
generated 167 million kWh of photovoltaic power 149600
kWh of biogas power and utilized 49.555 million kWh of
wind power.
2. Energy Mix Optimization: We optimized our energy
structure by adopting biomass pellets and natural gas
consuming 297400 tons of standard coal equivalent (SCE)
of biomass fuel.Types of carbon reduction measures 3. Energy-Saving & Decarbonization Retrofits: We
(such as using clean energy for power implemented process optimization equipment upgrades
generation using carbon reduction and waste heat recovery including tail gas scrubbing
technologies in the production process system optimization esterification steam waste heat
and developing new products that help recovery and ethylene cracking furnace tube upgrades.reduce carbon emissions) 4. Digital Energy Management Systems: We deployedplatforms for energy monitoring power management and
storage control. Subsidiary Hengli Advanced Materials was
listed in China’s "Smart Microgrid Pilot Program" enabling
optimized clean energy allocation.
5. Green Products: We produce PBS/PBAT biodegradable
polyesters and lithium battery separators. Our
"Atmospheric Dyeable Polyester Fiber Industrialization
Project" reduces energy use by 45-50% (steam) 14%
(water) and 25% (electricity) versus conventional dyeing.Specific note
√适用□不适用
For details please refer to the relevant content in the chapter "02 Energy Conservation and
Emissions Reduction Permanent Protection of Green" of the “2024 Sustainable Development Report”
disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) on April
172025.
II. Social responsibility work situation
(I) Whether to disclose social responsibility report sustainable development report or ESG report
separately
√适用□不适用
The company has prepared and disclosed its separate 2024 Sustainable Development Report. For
specific details please refer to the " 2024 Sustainable Development Report" disclosed by the company
on April 17 2025 on the SSE website (www.sse.com.cn).(II) Specific situation of social responsibility work
√适用□不适用
External donation public External donation External donation public welfare
welfare projects public welfare projects projects
Hengke Advanced Materials donated
Total investment 50000 yuan to the Nantong Tongzhou
(ten-thousand-yuan) 108 District Charity Federation; JiangsuXuanda donated 1 million yuan to the
Nantong Hengli Education Development
96 / 3522024 Annual Report 97
Foundation; Deli Chemical Fiber
donated 30000 yuan to the Jiangsu
Women and Children Welfare
Foundation.Including: capital (ten
thousand yuan) 108
Material discount
(ten thousand yuan)
Number of people benefited
(person)
Specific note
√适用□不适用
For details please refer to the relevant content in the chapter "05 People-oriented and Giving
Back to Society" of the "2024 Sustainable Development Report" disclosed by the Company on the
Shanghai Stock Exchange website (www.sse.com.cn) on April 17 2025.III. Consolidate and expand the achievements of poverty alleviation and rural
revitalization
√适用□不适用
Poverty Alleviation and Rural Quantity/Content Details
Revitalization Projects
Total investment Hengli Futures donated 841000 yuan to
(ten-thousand-yuan) the rural revitalization project in
Yanbian Korean Autonomous
Prefecture; Hengli Petrochemical
184.1 (Huizhou) participated in Daya BayDistrict's 2024 "6.30" rural revitalization
event and donated 1 million yuan to the
Huizhou Daya Bay Economic and
Technological Development Zone
Charity Federation.Including: capital (ten
thousand yuan) 184
Material discount Hengli Futures visited and assisted
(ten thousand yuan) 0.1 Yanbian Korean Autonomous Prefecture
b delivering supplies
Number of people benefited
(person)
Forms of assistance (such as
industrial poverty alleviation
employment poverty alleviation
education poverty alleviation
etc.)
Specific note
√适用□不适用
For details please refer to the relevant content in the chapter "05 People-oriented and Giving
Back to Society" of the "2024 Sustainable Development Report" disclosed by the Company on the
Shanghai Stock Exchange website (www.sse.com.cn) on April 17 2025.
97 / 3522024 Annual Report 98
98 / 3522024 Annual Report 99
Chapter 6 Important Events
I. Fulfillment of commitments
(I) Commitments made by the actual controller shareholders related parties acquirers and the
Company itself as well as relevant parties during the reporting period or continuing into the
reporting period
□适用√不适用
(II) The Company's assets or projects have profit forecasts and the reporting period is still in the
period of profit forecasts
The Company shall explain whether the assets or projects have reached the original profit forecasts
and the reasons
□已达到□未达到√不适用
(III) Fulfillment of performance commitment and its impact on goodwill impairment test
□适用√不适用
II. Non-operating funds occupied by controlling shareholders and other related parties
during the reporting period
□适用√不适用
III. Guarantee in violation of regulations
□适用√不适用
IV. Explanation of the Company's board of directors to the accounting firm's
"non-standard opinion audit report"
□适用√不适用
V. The company's analysis and explanation on the reasons and effects of changes in
accounting policies accounting estimates or corrections of major accounting
errors
(I) The company's analysis and explanation of the reasons and effects of the correction of major
accounting errors
□适用√不适用
(II) The company's analysis and explanation of the reasons and effects of the correction of major
accounting errors
□适用√不适用
(III) Communication with the former accounting firm
□适用√不适用
99 / 3522024 Annual Report 100
(IV) Approval procedures and other note
□适用√不适用
VI. Appointment and dismissal of accounting firms
Unit: ten-thousand-yuan Currency: RMB
Current employed
Domestic accounting firm name Zhonghui Certified Public Accountants
(Special General Partnership)
Domestic accounting firm remuneration 379
Audit period for domestic accounting firms 6
The name of the certified public accountant of the
domestic accounting firm Chen Xiaohua Fang Sai
Consecutive years of audit services of CPAs of domestic
accounting firms Chen Xiaohua (1 year) Fang Sai (3 years)
Name Remuneration
Internal control audit Zhonghui Certified Public Accountants
accounting firm (Special General Partnership) 60
Explanation on the appointment and dismissal of accounting firms
□适用√不适用
Explanation on the change of accounting firm during the audit period
□适用√不适用
Explanation of the situation where the audit fee has decreased by more than 20% (including 20%)
compared to the previous year
□适用√不适用
VII. Situations at risk of delisting
(I) Reasons for delisting risk warning
□适用√不适用
(II) Countermeasures the company intends to take
□适用√不适用
(III) Circumstances and reasons for facing termination of listing
□适用√不适用
VIII. Matters related to bankruptcy and reorganization
□适用√不适用
IX. Major litigation and arbitration matters
□本年度公司有重大诉讼、仲裁事项√本年度公司无重大诉讼、仲裁事项
100 / 3522024 Annual Report 101
X. Listed companies and their directors supervisors senior managers controlling
shareholders and actual controllers suspected of violating laws and regulations
punishments and rectifications
□适用√不适用
XI. Explanation on the integrity status of the company and its controlling shareholders
and actual controllers during the reporting period
□适用√不适用
XII. Significant related-party transactions
(I) Related-party transactions related to daily operations
1. Matters that have been disclosed in interim announcements and have no progress or change in
subsequent implementation
√适用□不适用
Matter Query Index
Estimated daily related party transactions in For details please refer to the "Announcement
2024 of Hengli Petrochemical on the Expected Status
of Daily Related Transactions in 2024"
(Announcement No. 2024-016) disclosed by the
company on the website of the Shanghai Stock
Exchange on April 10 2024
2. Matters that have been disclosed in interim announcements but have progress or changes in
subsequent implementation
□适用√不适用
3. Matters not disclosed in the interim announcement
□适用√不适用
(II) Related-party transactions in asset or equity acquisition and sale
1. Matters that have been disclosed in interim announcements and have no progress or change in
subsequent implementation
□适用√不适用
2. Matters that have been disclosed in interim announcements but have progress or changes in
subsequent implementation
□适用√不适用
3. Matters not disclosed in the interim announcement
□适用√不适用
101 / 3522024 Annual Report 102
4. If performance agreement is involved the performance realization within the Reporting Period
shall be disclosed.□适用√不适用
(III) Significant related-party transactions involving joint foreign investment
1. Matters that have been disclosed in interim announcements and have no progress or change in
subsequent implementation
□适用√不适用
2. Matters that have been disclosed in the interim announcement but have progress or changes in
subsequent implementation
□适用√不适用
3. Matters not disclosed in the interim announcement
□适用√不适用
(IV) Creditor's rights and liabilities with related parties
1. Matters that have been disclosed in interim announcements and have no progress or changes in
subsequent implementation
□适用√不适用
2. Matters that have been disclosed in interim announcements but have progress or changes in
subsequent implementation
□适用√不适用
3. Matters not disclosed in the interim announcement
□适用√不适用
(V) Financial business between the company and its affiliated financial companies and between the
company's holding financial company and its affiliated parties
□适用√不适用
1. Deposit business
□适用√不适用
2. Loan business
□适用√不适用
102 / 3522024 Annual Report 103
3. Credit business or other financial business
□适用√不适用
4. Other notes
□适用√不适用
(VI) Others
□适用√不适用
XIII. Significant contracts and their performance
(I) Trusteeship contracting and leasing matters
1. Trusteeship
□适用√不适用
2. Contracting
□适用√不适用
3. Leasing
□适用√不适用
103 / 3522024 Annual Report 104
(II) Guarantee
√适用□不适用
Unit: hundred-million-yuan Currency: RMB
The company's external guarantees (excluding guarantees for subsidiaries)
Relations Guarant
hip ee Has the Wheth
between The Guarant occurren guarant guarant guarant
Is the Guarant er it is a
Guaran the secur ee ce date ee ee
Type of Collate ee guarant ee Counter-guara guarant Releva
tor guaranto ed Amount (agreem Start Expirati
guarant ral (if
ee any) been
ee overdu
overdu e ntee ee for
nce
r and the party ent date on Date fulfilled related relation
listed signing e amount parties
company date)
None
Total amount of guarantees incurred during the reporting period
(excluding guarantees to subsidiaries)
Total balance of guarantees at the end of the reporting period (A)
(excluding guarantees to subsidiaries)
Guarantees provided by the company and subsidiaries to its subsidiaries
Total amount of guarantees for subsidiaries during the reporting
period 3262.97
Total balance of guarantees to subsidiaries at the end of the
reporting period (B) 2324.07
Total company guarantees (including guarantees to subsidiaries)
Total Guarantee (A+B) 2324.07
The ratio of the total guarantee amount to the company's net
assets (%) 366.58
Including:
Amount of guarantee provided for shareholders actual controllers
and their related parties (C) 0
Amount of debt guarantee provided directly or indirectly for 0.10
104 / 3522024 Annual Report 105
guaranteed objects whose asset-liability ratio exceeds 70% (D)
The amount of the part where the total guarantee exceeds 50% of
the net assets (E) 1865.73
The total amount of the above three guarantees (C+D+E) 1865.83
Explanation on possible joint and several liability for unexpired
guarantees
Guarantee information During the reporting period the company's guarantees were mutual guarantees between
the company and its subsidiaries (sub-subsidiaries).(III) Entrusting others to manage cash assets
1. Entrusted financial management
(1). Overall situation of entrusted financial management
√适用□不适用
Unit: ten-thousand-yuan Currency: RMB
Type Source of fund Amount Outstanding balance Overdue uncollected amount
Bank financial products Self-owned funds 81300.00 - -
Financial products of Self-owned funds
securities companies 23450.00 10200.00 -
Trust financial products Self-owned funds 127000.00 2100.00 -
Public fund products Self-owned funds 21399.42 3902.33 -
Private equity fund Self-owned funds
products 7970.00 1500.00 -
Others
□适用√不适用
(2). Individual entrusted financial management
√适用□不适用
Unit: ten-thousand-yuan Currency: RMB
105 / 3522024 Annual Report 106
Is Amount
Wheth there of
Entruste Entruste Entruste Entrusted d Remuner Annuali Expec Act er it any provisiod d financial financial Sources Fundin restricti Unexpi has entrus n forTrust financial financial manage manage of g ons
ation zed ted ual red gone ted impair
ee manage manage ment ment funds directio situatio
determin rate of incom gain
ation return e (if or amoun throug financi ment (ifment ment start maturity n n method any) loss t h legal al plan any)type amount date date proced in theures future
Zijin Self-ow Fixed
Trust Trust
Co. financial 2000.00
2024/2/ ned income 2000.
products 21 funds securiti
no 00 Yes No
Ltd. es
Self-ow Mixed
Tong Public
tai fund 2000.00 2024/10
ned securiti
funds es no 2000./18 00 Yes NesFund products invest
ment
Morg Self-ow Mixed
an Public
Stanl fund 1000.00 2024/10
ned securiti
/23 funds es no
1000. Yes Yes
ey products invest 00
Fund ment
Others
□适用√不适用
106 / 3522024 Annual Report 107
(3). Provision for impairment of entrusted financial management
□适用√不适用
2. Entrusted Loan situation
(1). General situation of entrusted loans
□适用√不适用
Others
□适用√不适用
(2). Individual entrusted loans
□适用√不适用
Others
□适用√不适用
(3). Provision for impairment of entrusted loans
□适用√不适用
3. Others
□适用√不适用
(IV) Other major contracts
□适用√不适用
XIV. Progress description of the use of raised funds
□适用√不适用
XV. Explanations on other major events that have a significant impact on investors'
value judgments and investment decisions
□适用√不适用
107 / 3522024 Annual Report 108
Chapter 7 Shareholding Changes and Shareholder Information
I. Changes in share capital
(I) Changes in Shares
1. Changes in Shares
During the reporting periodThe total number of shares and share capital structure of the company
have not changed.
2. Description of changes in shares
□适用√不适用
3. The impact of shareholding changes on financial indicators such as earnings per share and net
assets per share in the last year and the latest period (if any)
□适用√不适用
4. Other content that the company deems necessary or required by securities regulators to
disclose
□适用√不适用
(II) Changes in restricted shares
□适用√不适用
II. Securities issuance and listing
(I) Securities issuance as of the reporting period
√适用□不适用
Unit: share Currency: RMB
Types of Types of Types of Types of Types of Types of Types of
stocks and stocks and stocks and stocks and stocks and stocks and stocks and
their their their their their their their
derivative derivative derivative derivative derivative derivative derivative
securities securities securities securities securities securities securities
Common stock
Bonds (including corporate bonds corporate bonds and non-financial corporate bond financing
instruments)
Series 1
short-term 2023-07-17 3.53% 1 billion 2023-07-20 1 billionfinancing yuan yuan 2024-07-19
bond 2023
Series 1
short-term
financing
bond 2024 2024-07-12 2.20% 1 billionyuan 2024-07-16
1 billion 2025-07-14
(Science and yuan
Technology
Innovation
108 / 3522024 Annual Report 109
Notes)
Series 2
short-term
financing
bond 2024 2024-08-16to 2.15% 1 billion(Science and yuan 2024-08-21
1 billion
yuan 2025-08-19
Technology 2024-08-19
Innovation
Notes)
Series 1
medium-term 2025-04-09 2.47% 500 millionfinancing yuan 2025-04-11
500 million
yuan 2028-04-07
bond 2025
Explanation on securities issuance as of the reporting period (for bonds with different interest rates
during the duration please explain separately):
√适用□不适用
On April 9 2024 and April 30 2024 the company convened the 19th meeting of the 9th Board of
Directors and Annual General Meeting in 2023. The meetings reviewed and approved the Proposal on
Registering and Issuing Short-Term Financing Bonds agreeing that the company would apply to the
China Interbank Market Dealers Association to register and issue short-term financing bonds with an
amount not exceeding RMB 3 billion (including 3 billion yuan).On June 24 2024 the company received the Acceptance of Registration Notice (Zhong Shi Xie Zhu
[2024] CP92) from the Dealers Association stating that the Dealers Association accepted the
registration of the company's short-term financing bonds with a registered amount of 3 billion yuan.The registered quota is valid for a period of 2 years from the date of the notice.On July 12 2024 the company issued the first tranche of short-term financing bonds (science and
technology innovation bill) for the year 2024 in the national interbank market. The bonds have a
maturity of 365 days with a total issuance amount of 1 billion yuan and an issuance interest rate of
2.20%.
On August 16 2024 the company issued the second tranche of short-term financing bonds
(science and technology innovation bill) for the year 2024 in the national interbank market. The bonds
have a maturity of 365 days with a total issuance amount of 1 billion yuan and an issuance interest
rate of 2.15%.On August 22 2024 and September 10 2024 the company convened the 21st meeting of the 9th
Board of Directors and the first extraordinary general meeting of shareholders of 2024 respectively
during which the "Proposal on Applying for the Registration and Issuance of Medium-Term Notes" was
reviewed and approved. The resolution authorized the Company to apply to the National Association of
Financial Market Institutional Investors (NAFMII) for the registration and issuance of medium-term
notes with a total face value not exceeding RMB 3 billion (inclusive).On November 20 2024 the company received the "Notice of Acceptance of Registration" (NAFMII
Registration Notice Reference No.: [2024] MTN1155) issued by National Association of Financial
Market Institutional Investors approving the registration of the Company's medium-term notes with
a total registered amount of RMB 3 billion yuan. The registration quota will remain valid for two years
from the date indicated on the notice.On April 9 2025 the company issued the first tranche of medium-term note for the year 2025 in
the national interbank market. The bonds have a maturity of 3 years with a total issuance amount of
0.5 billion yuan and an issuance interest rate of 2.47%
(II) Changes in the total number of shares of the company and the structure of shareholders as well
as changes in the structure of the company's assets and liabilities
□适用√不适用
109 / 3522024 Annual Report 110
(III) Existing Internal Staff shares
□适用√不适用
III. Shareholders and actual controllers
(I) Total number of shareholders
Total number of ordinary shareholders as of the
end of the reporting period (accounts) 81747
The total number of ordinary shareholders at the
end of the previous month before the annual 74978
report disclosure date (accounts)
Total number of preferred shareholders with
voting rights restored as of the end of the 0
reporting period (accounts)
The total number of preference shareholders
whose voting rights have been restored at the
end of the previous month before the annual 0
report disclosure date (accounts)
110 / 3522024 Annual Report 111
(II) Table of shareholdings of the top ten shareholders and top ten tradable shareholders (or
shareholders not subject to sales restrictions) as of the end of the reporting period
Unit: share
Shareholdings of the top ten shareholders (excluding shares lent through refinancing)
Number Pledge Mark or
Shareholder Changes Number of
's name during the shares held
Rati of Freeze Situation
reporting at the end of o restricte
Shareholder
Share nature
(Full name) period the period (%) d shares status Quantityheld
Hengli 98044000 21006123 29.8 Pledge 11815000 DomesticGroup Co.Ltd. 0 42 4
d 00 non-state-owned legal person
Hengneng Pledge
Investment 14984789 21.2 d Domestic
(Dalian) Co. - 26 9 746077500 non-state-own
Ltd. ed legal person
Fan
Hongwei - 791494169
11.2
4 None
Domestic
natural person
Dechengli
Internation 10.4 Foreign legal
al Group - 732711668 1 None person
Co. Ltd.Hong Kong
Securities
Clearing 10427993
Company 7
224760055 3.19 None Other
Limited
Xuanyuan
Private
Equity Fund
Investment
Manageme
nt
(Guangdong
) Co. Ltd. -
Xuanyuan - 82600783 1.17 None Other
Yuanbao
No. 16
Private
Equity
Securities
Investment
Fund
Dalian
State-owne
d Assets
Investment
and 80000 68898123 0.98
Pledge 15000000 State-ownedd legal entity
Operation
Group Co.Ltd.Xuanyuan - 66297823 0.94 None Other
111 / 3522024 Annual Report 112
Private
Equity Fund
Investment
Manageme
nt
(Guangdong
) Co. Ltd. -
Xuanyuan
Yuanbao
No. 17
Private
Equity
Securities
Investment
Fund
Xuanyuan
Private
Equity Fund
Investment
Manageme
nt
(Guangdong
) Co. Ltd. -
Xuanyuan - 64783284 0.92 None Other
Yuanbao
No. 18
Private
Equity
Securities
Investment
Fund
Jiangsu
Hegao Domestic
Investment - 61952065 0.88 None non-state-own
Co. Ltd. ed legal person
Shareholdings of the top ten shareholders without restrictions on sales (excluding shares lent through
refinancing)
Shareholder Name Number of unrestricted
Share type and quantity
tradable shares held Type Quantity
Hengli Group Co. Ltd. 2100612342 Renminbi ordinaryshares 2100612342
Hengneng Investment 1498478926 Renminbi ordinary(Dalian) Co. Ltd. shares 1498478926
Fan Hongwei 791494169 Renminbi ordinaryshares 791494169
Dechengli International 732711668 Renminbi ordinaryGroup Co. Ltd. shares 732711668
Hong Kong Securities
Clearing Company 224760055 Renminbi ordinary
Limited shares
224760055
Xuanyuan Private Equity
Fund Investment 82600783 Renminbi ordinary 82600783
Management shares
112 / 3522024 Annual Report 113
(Guangdong) Co. Ltd. -
Xuanyuan Yuanbao No.
16 Private Equity
Securities Investment
Fund
Dalian State-owned
Assets Investment and 68898123 Renminbi ordinary 68898123
Operation Group Co. Ltd. shares
Xuanyuan Private Equity
Fund Investment
Management
(Guangdong) Co. Ltd. - Renminbi ordinary
Xuanyuan Yuanbao No. 66297823 shares 66297823
17 Private Equity
Securities Investment
Fund
Xuanyuan Private Equity
Fund Investment
Management
(Guangdong) Co. Ltd. - Renminbi ordinary
Xuanyuan Yuanbao No. 64783284 shares 64783284
18 Private Equity
Securities Investment
Fund
Jiangsu Hegao Investment Renminbi ordinary
Co. Ltd. 61952065 shares 61952065
Explanation of the
repurchase accounts As of the end of the reporting period none of the top ten shareholders
among the top ten had a corporate repurchase account.shareholders
Explanation on proxy
voting rights proxy voting
rights and waiver of
voting rights of the
above-mentioned
shareholders
Explanation on the
related relationship or Hengli Group Hengneng Investment Fan Hongwei and Hegao Investment
concerted action of the are parties acting in concert with each other; the relationship between
above-mentioned other shareholders is unknown.shareholders
Explanation on preferred
stockholders with
restored voting rights and During the reporting period the company had no preferred shareholders.the number of shares
held
Shareholders holding more than 5% of the shares the top ten shareholders and the top ten
shareholders of unrestricted tradable shares participating in the refinancing business and lending
shares
√适用□不适用
Unit: share
Shareholders holding more than 5% of the shares the top ten shareholders and the top ten
113 / 3522024 Annual Report 114
shareholders of unrestricted tradable shares participating in the refinancing business and lending
shares
Sharehold Shareholder's name Shareholder's Shareholder's name Shareholder's
er's name name name
Total
quantit Proportio
Total
quant Proportio Total Proportio
Total Proportio
y n(%) ity n(%) quantity n(%)
quant
ity n(%)
Dalian
State-ow
ned
Assets
Investme 68818 8000123 0.98 0 0.12
68898
123 0.98 0 0nt and
Operation
Group
Co. Ltd.The top ten shareholders and the top ten shareholders of unrestricted tradable shares have changed
compared to the previous period due to lending/repayment of refinancing
□适用√不适用
The number of shares held by the top ten shareholders with sales restrictions and the conditions for
sales restrictions
□适用√不适用
(III) Strategic investors or general legal persons become the top 10 shareholders due to allotment of
new shares
□适用√不适用
IV. Controlling shareholders and actual controllers
(I) Controlling shareholders
1. Legal person
√适用□不适用
Name Hengli Group Co. Ltd.The person in charge or legal Chen Jianhua
representative of the entity
Date of establishment January 16 2002
Main operating business Production and sales of needle textiles and paper packaging
materials (excluding printing) ; sales of chemical fiber raw
materials plastics mechanical and electrical equipment
instruments ash residue purified terephthalic acid (PTA) and
monoethylene glycol (MEG) ; industrial investment; research
and development of new textile raw materials products;
self-operated and agency import and export of various
commodities and technologies; limited branch operations
include thermal power generation and steam production and
supply. (Business activities in projects that require approval
by law can only be conducted after obtaining approvals from
114 / 3522024 Annual Report 115
relevant departments).Shareholdings of other domestic Hengli Group is the controlling shareholder of the listed
and foreign listed companies company Guangdong Songfa Ceramics Co. Ltd. (stock code:
controlled and participated in 603268) and the listed company Suzhou Wujiang Tongli Lake
during the reporting period Tourist Resort Co. Ltd. (stock code: 834199).Other information None
2. Natural person
□适用√不适用
3. Special note on the absence of a controlling shareholder in the company
□适用√不适用
4. Explanation on the change of controlling shareholders during the reporting period
□适用√不适用
115 / 3522024 Annual Report 116
5. Block diagram of the property rights and control relationship between the company and the
controlling shareholder
√适用□不适用
(II) Actual controller
1. Legal person
□适用√不适用
2. Natural person
√适用□不适用
Name Chen Jianhua and Fan Hongwei (Spouse)
Nationality China
Whether to obtain the right of None
residence in other countries or
regions
Main occupation and position Chen Jianhua is the chairman and general manager of Hengli
Group Co. Ltd. the controlling shareholder of the listed
company; Fan Hongwei is the current chairman of the listed
company
Domestic and foreign listed Chen Jianhua and Fan Hongwei are the actual controllers of
companies that have been the listed company Guangdong Songfa Ceramics Co. Ltd.controlled in the past 10 years (stock code: 603268) and the listed company Suzhou Wujiang
Tongli Lake Tourist Resort Co. Ltd. (stock code: 834199).
3. Special note for the absence of actual controllers in the company
□适用√不适用
4. Explanation on changes in the company's control during the reporting period
□适用√不适用
116 / 3522024 Annual Report 117
5. Block diagram of the property rights and control relationship between the company and the
actual controller
√适用□不适用
Note:
1. When calculating the shareholding ratio of Hengfeng Investment (Dalian) Co. Ltd. the number of
shares directly held through its own account "Hengfeng Investment (Dalian) Co. Ltd." (accounting for
0.46% of the total share capital) and the number of shares indirectly held through the contractual
private equity fund account "Hainan Huayin Tianxia Private Equity Fund Management Co. Ltd. - Huayin
Xuyang No. 1 Private Equity Securities Investment Fund" (accounting for 0.58% of the total share
capital) are included.
2. The Company's actual controllers are Chen Jianhua and Fan Hongwei (a married couple) who
directly and indirectly (including through voting rights entrustment) hold a total of 5310675080
shares in the Company via Hengli Group Co. Ltd. and its concerted parties representing a 75.45%
shareholding ratio.
6. The actual controller controls the company through trust or other asset management methods
□适用√不适用
(III) Other information on controlling shareholders and actual controller
□适用√不适用
V. The cumulative number of pledged shares by the company's controlling shareholder
or largest shareholder and their concerted actors accounts for more than 80% of
their total holdings in the company
□适用√不适用
VI. Other legal person shareholders holding more than 10% of the shares
√适用□不适用
Unit: ten-thousand-yuan Currency: RMB
Legal entity The person in Main
shareholder charge or legal Date of Registered operating
name representative establishment
Organization Code capital business or
of the entity management
117 / 3522024 Annual Report 118
activities
etc.Hengneng
Investment
(Dalian) Co. Fan Hongwei 2014-03-06 912102440890861452 50000 Invest
Ltd.Tak Shing Li
International Fan Hongwei 2003-08-27 Registration number: Trade and
Holdings Ltd. 859250
500 investment
Other Hengneng Investment and Tak Shing Li are persons acting in concert with Hengli
information Group the controlling shareholder of the company
VII. Explanation on reduction of shareholding restriction
□适用√不适用
VIII. Specific implementation of share repurchase during the reporting period
□适用√不适用
118 / 3522024 Annual Report 119
Chapter 8 Information of Preferred Shares
□适用√不适用
119 / 3522024 Annual Report 120
Chapter 9 Information of Bonds
I. Corporate bonds (including enterprise bonds) and non-financial corporate debt
financing instruments
√适用□不适用
(I) Corporate bonds (including enterprise bonds)
□适用√不适用
(II) Use of proceeds from corporate bond issuance
□公司债券在报告期内涉及募集资金使用或者整改
√本公司所有公司债券在报告期内均不涉及募集资金使用或者整改
(III) Additional disclosure requirements for special bond types
□适用√不适用
(IV) Significant matters concerning corporate bonds during the reporting period
□适用√不适用
120 / 3522024 Annual Report 121
(V) Debt financing instruments for non-financial enterprises in the inter-bank bond market
√适用□不适用
1. Non-financial corporate debt financing instruments
Unit: hundred-million-yuan Currency: RMB
Whether
Payment of Investor there is a
Bond name Abbreviation Code Issuance Value date Maturity Bond Interest principal and Trading Suitability Trading risk ofdate date balance rate(%) interest places Arrangements Mechanism termination(if any) of listing
transactions
Hengli
Petrochemical 24 Hengli
Co. Ltd. Series Petrochemical One-time
1 Short-term CP001 repayment China
Financing Bond (Science and 042480359 2024-07-12 2024-07-15 2025-07-15 10 2.20 of principal interbank No
2024 Technology and interest market
(Technology Innovation at maturity
Innovation Notes)
Note)
Hengli
Petrochemical 24 Hengli
Co. Ltd. Series Petrochemical One-time
2 Short-term CP002 2024-08-16 repayment China
Financing Bond (Science and 042480413 to 2024-08-20 2025-08-20 10 2.15 of principal interbank No
2024 Technology 2024-08-19 and interest market
(Technology Innovation at maturity
Innovation Notes)
Note)
Hengli 25 Hengli Interest is China
Petrochemical Petrochemical 102581528 2025-04-09 2025-04-10 2028-04-10 5 2.47 paid once a interbank no
Co. Ltd. Series MTN001 year and market
121 / 3522024 Annual Report 122
Whether
Payment of Investor there is a
Bond name Abbreviation Code Issuance Value date Maturity Bond Interest principal and Trading Suitability Trading risk ofdate date balance rate(%) interest places Arrangements Mechanism termination(if any) of listing
transactions
1 One-time
Medium-term repayment
Financing Bond of principal
2025 and interest
at maturity
122 / 3522024 Annual Report 123
The company's countermeasures against the risk of delisting and trading bonds
□适用√不适用
Overdue bonds
□适用√不适用
Bond interest payment and repayment during the reporting period
√适用□不适用
Bond Name Explanation on interest payment and repayment
Hengli Petrochemical On July 19 2024 the company disclosed the "Announcement on the
Co. Ltd. Series 1 Completion of Redemption of the Series 1 Short-term Financing Bonds
Short-term Financing 2023" (Announcement No.: 2024-045) and has completed the redemption
Bond 2023 of this bond with a total principal and interest repayment of RMB 103.53million.
2. The triggering and implementation of company or investor option clauses and investor
protection clauses
□适用√不适用
3. Intermediaries providing services for bond issuance and duration business
Intermediary Name of
name Office address Signing
Contact
person Contact numberAccountant
Postal Savings Yang
Bank of China No. 3 Financial Street Xicheng LixunDistrict Beijing Zheng 010-68858095Co. Ltd. Yang
Industrial Bank Industrial Bank Building No. 398
Co. Ltd. Jiangbin Middle Avenue Taijiang
Gu 0411-88007094
District Fuzhou City Fujian Province Qingcheng
Zhang
China Galaxy Room 101 7th to 18th Floor Building Tao Xu
Securities Co. 1 No. 8 Xiying Street Fengtai District Wei Li 010-80927129
Ltd. Beijing Tong Li
Manting
China China Merchants Bank Building No. Guo
Merchants 7088 Shennan Avenue Futian Pengfei 0755-88026264
Bank Co. Ltd. District Shenzhen Guo Wei 0411-39853306
China Zheshang No. 1788 Hongning Road Xiaoshan
Bank Co. Ltd. District Hangzhou City Zhejiang
Wang
Haoran 024-31911273Province
China
Construction No. 25 Financial Street Xicheng Wang
Bank District Beijing Wenjia 010-67595589
Corporation
Hua Xia Bank No. 22 Jianguomennei Street
Co. Ltd. Dongcheng District Beijing Li Bailu 010-85237515
China CITIC Floors 6-30 32-42 Building 1 No. 10
Bank Guanghua Road Chaoyang District You Wen 010-66638188
Corporation Beijing
123 / 3522024 Annual Report 124
Limited
Soochow
Securities Co. No. 5 Xingyang Street Suzhou Chen
Ltd. Industrial Park Shihao
13776126605
Beijing Unit 509 Building A International Zhang
Tianyuan Law Enterprise Building No. 35 Financial DerenHuang 010-57763888Firm Street Xicheng District Beijing Jingya
Grandall Law No. 2 No. 15 Grandall Law Firm
Firm Baita Park Area B Laofuxing Road Yang Zhao 0571-85775888
(Hangzhou) Shangcheng District Hangzhou
Zhonghui
Certified Public Room 601 Building A Hualian Times Chen
Accountants Building No. 8 Xinye Road Jianggan Xiaohua Fang Sai 0571-88879999
(Special General District Hangzhou Fang Sai
Partnership)
Dagong 3rd Floor Building A Foreign
International Language Building No. 89 West Third Zhou
Credit Rating Ring Road North Haidian District Chunyun 010-67413300
Co. Ltd. Beijing China
Changes to the above-mentioned intermediaries
□适用√不适用
124 / 3522024 Annual Report 125
4. Use of raised funds at the end of the reporting period
√适用□不适用
unit:100 million yuan Currency:RMB
Whether it is
consistent
with the
Total Operation Rectificationof special of illegal use purpose use
Bond name amount of Amount Unusedfunds used amount account for of raised
plan and
raised funds funds (if otherraised (if any) any) agreementspromised in
the
prospectus
24 Hengli
Petrochemical
CP001 (Science 10 10 0 Normaland Technology compliance None Yes
Innovation
Notes)
24 Hengli
Petrochemical
CP002 (Science
and Technology 10 10 0
Normal
compliance None Yes
Innovation
Notes)
Progress and operational benefits of raising funds for construction projects
□适用√不适用
Explanation on changing the use of funds raised from the above bonds during the reporting period
□适用√不适用
Other notes:
□适用√不适用
5. Adjustments to credit rating results
□适用√不适用
Other notes:
□适用√不适用
6. The implementation and changes of guarantees debt repayment plans and other debt
repayment guarantee measures during the reporting period and their impact
□适用√不适用
7. Explanation on other conditions of non-financial corporate debt financing instruments
□适用√不适用
125 / 3522024 Annual Report 126
(VI) The company incurred a consolidated net loss during the reporting period that exceeded 10% of
the net assets at the end of the previous year
□适用√不适用
(VII) Overdue interest-bearing debts other than bonds at the end of the reporting period
□适用√不适用
(VIII)The impact on bond investors' rights during the reporting period due to violations of laws
regulations company bylaws provisions of information disclosure management systems as well
as deviations from the provisions or commitments stated in the bond prospectus
□适用√不适用
(IX) Accounting Data and Financial Indicators of the Company in the Previous Two Years by the End
of the Reporting Period
√适用□不适用
Unit: hundred-million-yuan Currency: RMB
Keydicators 2024 2023 Year-on-year Reason ofchanges(%) changes
Net profit excluding extraordinary
profit or loss 520903.24 599723.27 -13.14
Current ratio 0.56 0.53 5.66
Quick ratio 0.30 0.21 42.86
Debt-to-assets ratio (%) 76.78 76.98 -0.20
Total debt-to-EBITDA ratio 0.12 0.12 -
Interest coverage ratio 2.25 2.30 -2.17
Cash flow interest coverage ratio 4.16 4.10 1.46
EBITDA-to-interest coverage ratio 4.13 3.97 4.03
Loan repayment rate (%) 100.00 100.00
Interest coverage rate (%) 100.00 100.00
II. Convertible corporate bonds
□适用√不适用
126 / 3522024 Annual Report 127
Chapter 10 Financial Reports
I. Auditor’s Report
√适用□不适用
All shareholders of Hengli Petrochemical Co. Ltd.:
I. Audit Opinion
We have audited the financial statements of Hengli Petrochemical Co. Ltd. (hereinafter "the
Company") which comprise the consolidated and company balance sheets as at 31 December 2024
and the consolidated and company income statements consolidated and company cash flow
statements and consolidated and company statements of changes in equity for the year then ended
and notes to the financial statements.In our opinion the accompanying financial statements present fairly in all material respects the
consolidated and company financial positions as at 31 December 2024 and their financial performance
and their cash flows for the year then ended in accordance with the requirements of Accounting
Standards for Business Enterprises.II. Basis for Audit Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities
under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are independent of the Company and have fulfilled our
other ethical responsibilities in accordance with the China Code of Ethics for Certified Public
Accountants. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.III. Key Audit Matters
Key audit matter is the matter that in our professional judgment was of most significance in our
audit of the financial statements for the year ended 31 December 2023. This matter was addressed in
the context of our audit of the financial statements as a whole and in forming our opinion thereon
and we do not provide a separate opinion on this matter. We have determined the following matters
to be key audit matters that need to be communicated in the audit report.The key audit matters we identified during our audit are summarised below:
Key audit matter Addressed in the context of our audit
1. Revenue recognition
In the audit of the financial statements for the
As mentioned in the notes to the financial year we have implemented the following
statements of Hengli Petrochemical Company procedures for the matter of revenue
"Notes on Consolidated Financial Statement recognition:
Items - Operating Revenue" the operating 1. Evaluate and test the design and operation
revenue for the current period was effectiveness of key internal controls related to
RMB23627327.65 million.The primary revenue recognition of the Company;
revenue sources and recognition criteria are 2. Understand the various types of income of
shown in note to the financial statements of the Company and their recognition conditions
the Company "Principal Accounting Policies and evaluate whether the income recognition
and Accounting Estimates - Revenue". policy meets the requirements of the
Since revenue is one of the key performance accounting standards; 3. Combined with the
indicators of the Company there is an inherent comparison of gross profit margins of
risk that management will manipulate revenue companies in the same industry an analysis
recognition in order to achieve specific goals or procedure is performed on the Company's
expectations. Therefore we recognize revenue revenue costs and gross profit margins to
recognition as a key audit matter. analyze the rationality of the gross profit
margin change trend;
127 / 3522024 Annual Report 128
Key audit matter Addressed in the context of our audit
4. Select sample and inspect the Company's
various types of income related contracts
invoices income confirmation documents and
other documents to test the authenticity of
income;
5. Perform a sample test on the revenue
recognized around the balance sheet date to
assess whether the sales revenue is recognized
in the appropriate accounting period;
6. Carry out confirmation procedure on the
income amount of the Company's major
customers and the balances of receivable.
2. Provision for decline in value of inventories
In the audit of the financial statements for the
year we have implemented the following
procedures for the matter of Provision for
decline in value of inventories:
As mentioned in the note to Hengli 1. Evaluate and test the design and operation
Petrochemical's financial statements "Notes effectiveness of key internal controls related to
to Consolidated Financial Statements - provision for decline in value of inventories of
Inventories" the ending inventory balance was the Company;
RMB 2537481.69 million and the balance of 2. Conduct sampling inspection on the
provision for decline in value of inventories. inventory of the Company to check whether
was RMB 1123355.6 million. The book value the quantity of inventory is accurate and
of inventory was RMB 2425146.13 million whether there are any conditions such as
which was high. The Company's inventories are damage obsolescence obsolescence and
mainly crude oil and refining-related products defects;
which are greatly affected by the 3. Obtained calculation sheet of the provision
macroeconomic and crude oil market price for decline in value of inventories prepared by
fluctuations. Whether the provision for decline the management of the Company reviewed
in value of inventories is sufficient or not has a the key parameters for calculating the
significant impact on the financial statements provision for decline in value of inventories
and the Company's provision for decline in including estimated future sales prices costs to
value of inventories is subject to the judgment be incurred by the completion of the project
of the management involved in the sales expenses and related taxes and fees and
determination of the net realizable value. checked the accuracy of the calculation of
Therefore we recognize provision for decline provision for decline in value of inventories;
in value of inventories as a key audit matter. 4. Check whether the calculation andaccounting treatment of provision for decline
in value of inventories is correct whether
provision or write-off for the year is consistent
with the relevant amount of profit or loss
account.IV. Other Information
Management is responsible for the other information. The other information comprises the
information included in the Company’s 2023 annual report but does not include the financial
statements and our auditor's report thereon.Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with
128 / 3522024 Annual Report 129
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.If based on the work we have performed we conclude that there is a material misstatement of
this other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management of the Company is responsible for the preparation of the financial statements to
achieve fair presentation in accordance with Accounting Standards for Business Enterprises and for the
design implementation and maintenance of such internal control as management determine is
necessary to enable the preparation of the financial statements that are free from material
misstatement whether due to fraud or error.In preparing the financial statements management is responsible for assessing the Company's
ability to continue as a going concern disclosing as applicable matters related to going concern and
using the going concern basis of accounting unless management either intend to liquidate the
Company or to cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's financial reporting
process.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatements whether due to fraud or error and to issue an audit
report that includes an audit opinion. Reasonable assurance is a high level of assurance but it does not
guarantee that an audit conducted in accordance with auditing standards will always detect a material
misstatement when it exists. Misstatements may arise from fraud or error and are generally considered
material if they could reasonably be expected individually or in the aggregate to influence the
economic decisions of users taken on the basis of the financial statements.In the process of performing audit work in accordance with auditing standards we exercise
professional judgment and maintain professional skepticism. At the same time we also perform the
following work:
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement whether due to fraud or error and to issue an auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with auditing standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if individually or in the aggregate they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.As part of an audit in accordance with auditing standards we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether
due to fraud or error design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error as fraud may
involve collusion forgery intentional omissions misrepresentations or the override of internal
control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company's ability to continue as a going
concern. If we conclude that a material uncertainty exists the auditing standards require us to draw
attention to users of the financial statements in our auditor's report to the related disclosures in the
129 / 3522024 Annual Report 130
financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor's report. However future events or
conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements
including the disclosures and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Company to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We remain
solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the
planned scope and timing of the audit and significant audit findings including any significant
deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence and
where applicable related safeguards.From the matters communicated with those charged with governance we determine those
matters that were of most significance in the audit of the financial statements of the current period
and are therefore the key audit matters. We describe these matters in our auditor's report unless law
or regulation precludes public disclosure about the matter or when in extremely rare circumstances
we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of
such communication.Zhonghui Certified Public Accountants (Special General Partnership)
Chinese Certified Public Accountant: Chen Xiaohua (Project Partner)
Public Accountant: Fang Sai
China Hangzhou Certified
Report date: April 15 2025
130 / 3522024 Annual Report 131
II. Financial Statements
Consolidated Balance Sheet
As at December 31 2024
Compiled by: Hengli Petrochemical Co. Ltd.Unit: Yuan Currency: RMB
Item Note As at 31/12/2024 As at 31/12/2023
Current assets:
Cash and bank balances 30836640755.89 20469039149.14
Settlement reserve
Due from banks and other
financial institutions
Financial assets held for
trading 428380369.27 298830073.13
Derivative financial assets
Notes receivable 28601284.34
Accounts receivable 579028516.23 538415259.33
Receivable financing 6628663752.25 4170047562.43
Prepayments 2432127659.25 1735558535.56
Insurance premium
receivables
Reinsurance premium
receivables
Reserve receivable for
reinsurance
Other receivables 441295980.89 809207973.41
Including: Interest
receivables
Dividend receivables
Financial assets purchased
under agreements to resell
Inventories 24251461292.33 31267554645.91
Including: Data resources
Contract assets
Assets held-for-sale
Non-current assets due
within one year
Other current assets 7643356536.21 6794497876.94
Total current assets 73269556146.66 66083151075.85
Non-current assets:
Loans and advances
Debts investment
Other debts investment
Long-term receivables
Long-term equity
investments 745868004.65 646000353.85
Other equity instruments
investment
Other non-current financial
assets
Investment properties 207631846.17 192405490.57
Fixed assets 147008441268.04 129987346509.40
131 / 3522024 Annual Report 132
Construction in progress 38393831275.27 48824137687.45
Productive biological assets
Oil and gas assets
Right-of-use assets 436048823.59 77132749.74
Intangible assets 9147170857.28 9034820634.08
Including: Data resources
Development cost
Including: Data resources
Goodwill 77323123.69 77323123.69
Long-term deferred expenses 1980550749.22 2017090197.82
Deferred tax assets 467739176.52 276325176.98
Other non-current assets 1348708592.31 3383287915.12
Total non-current assets 199813313716.74 194515869838.70
TOTAL ASSETS 273082869863.40 260599020914.55
Current liabilities:
Short-term loans 79041948844.84 66995050481.39
Borrowings from central
bank
Deposits and placements
from banks and other financial
institutions
Financial liabilities held for
trading 503787256.86 190324330.67
Derivative financial liabilities
Notes payable 11447306278.33 12002453588.53
Accounts payable 9489657622.13 15598667595.93
Receipts in advance
Contract liabilities 7237041468.28 8502387268.92
Financial assets sold under
agreements to repurchase
Due to customers and banks
Securities brokering
Securities underwriting
Employee benefits payable 493458721.02 500637516.56
Taxes payable 1022522462.49 1439601734.55
Other payables 375249175.51 416224941.72
Including: Interest payables
Dividends payable
Fees and commissions
payable
Reinsurance premium
payable
Liabilities held-for-sale
Non-current liabilities due
within one year 14881493535.65 13498071650.12
Other current liabilities 6386840701.94 4718353856.20
Total current liabilities 130879306067.05 123861772964.59
Non-current liabilities:
Claims reserve of insurance
contract
Long-term loans 72289105878.33 70620906532.26
Bonds payable
132 / 3522024 Annual Report 133
Including: Preferred shares
Perpetual bonds
Lease liabilities 304795938.86 41516484.45
Long-term payables 2301784112.38 2085460266.51
Long-term employee
benefits payable
Provisions
Deferred income 3851089558.89 3949091884.36
Deferred tax liabilities 39225490.65 41710468.32
Other non-current liabilities
Total non-current
liabilities 78786000979.11 76738685635.90
TOTAL LIABILITIES 209665307046.16 200600458600.49
Owners' Equity (or Shareholders' Equity):
Paid-in capital (or Share
capital) 7039099786.00 7039099786.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 18845170600.53 18763586176.98
Less: Treasury shares
Other comprehensive
income -26381521.04 -9624653.08
Specific reserve 279243445.05 109358123.52
Surplus reserve 1087391116.57 995318771.37
General risk reserve
Undistributed profits 36174653818.01 33094662821.91
Total owners’equity (or
shareholders’equity) 63399177245.12 59992401026.70
attributable to the parent
Minority interests 18385572.12 6161287.36
Total owners’equity (or
shareholders’equity) 63417562817.24 59998562314.06
Total liabilities and
owners’equity (or 273082869863.40 260599020914.55
shareholders’equity)
Legal representative: Fan Hongwei
Person in charge of financial function: Liu Xuefen
Head of Accounting Agency (Prepared by): Zheng Minxia
Parent company balance sheet
As at December 31 2024
Compiled by: Hengli Petrochemical Co. Ltd.Unit: Yuan Currency: RMB
Item Note As at 31/12/2024 As at 31/12/2023
Current assets:
Cash and bank balances 52196041.75 14398907.50
Financial assets held for
trading
133 / 3522024 Annual Report 134
Derivative financial assets
Notes receivable
Accounts receivable 825949.04 1206845.42
Receivable financing
Prepayments 289803617.26 171071.66
Other receivables 335837191.04 164731382.20
Including: Interest
receivables
Dividends receivable 198989881.02 81550000.00
Inventories
Including: Data resources
Contract assets
Assets held-for-sale
Non-current assets due
within one year
Other current assets 35987407.95
Total current assets 678662799.09 216495614.73
Non-current assets:
Debts investment
Other debts investment
Long-term receivables
Long-term equity
investments 44422275704.93 44366275704.93
Other equity instruments
investment
Other non-current financial
assets
Investment properties 95712297.59 73260186.32
Fixed assets 2604742812.15 2723712211.22
Construction in progress 40240646.81
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets
Including: Data resources
Development cost
Including: Data resources
Goodwill
Long-term deferred expenses 45086519.53
Deferred tax assets
Other non-current assets
Total non-current assets 47167817334.20 47203488749.28
TOTAL ASSETS 47846480133.29 47419984364.01
Current liabilities:
Short-term loans
Financial liabilities held for
trading
Derivative financial liabilities
Notes payable 4000185.91 3219218.07
Accounts payable 1894228.97 2608881.32
Receipts in advance
Contract liabilities 201109561.52
134 / 3522024 Annual Report 135
Employee benefits payable 683188.62 600000.00
Taxes payable 12532698.69 6291958.40
Other payables 6490766973.82 5584532670.44
Including: Interest payables
Dividends payable
Liabilities held-for-sale
Non-current liabilities due
within one year 1015294281.98
Other current liabilities 2042896931.14
Total current liabilities 8753883768.67 6612547010.21
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred tax liabilities
Other non-current liabilities
Total non-current
liabilities
TOTAL LIABILITIES 8753883768.67 6612547010.21
Owners' Equity (or Shareholders' Equity):
Paid-in capital (or Share
capital) 7039099786.00 7039099786.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 24142978843.34 24142978843.34
Less: Treasury shares
Other comprehensive
income
Specific reserve
Surplus reserve 3028970446.97 2813304057.66
Undistributed profits 4881547288.31 6812054666.80
Total owners’equity (or
shareholders’equity) 39092596364.62 40807437353.80
Total liabilities and
owners’equity (or 47846480133.29 47419984364.01
shareholders’equity)
Legal representative: Fan Hongwei
Person in charge of financial function: Liu Xuefen
Head of Accounting Agency (Prepared by): Zheng Minxia
Consolidated Income Statement
For the year ended 31 December 2024
135 / 3522024 Annual Report 136
Unit: Yuan Currency: RMB
Item Note 2024 2023
I. Total revenue from operations 236400576222.39 234866125177.52
Including: Revenue from
operations 236273276477.92 234790672395.88
Interest income 40498587.21 35252401.34
Premium earned
Fees and commissions
income 86801157.26 40200380.30
II. Total cost of operations 228874564879.39 226611119211.98
Including: Cost of operations 212983331904.94 208383851927.36
Interest expenses
Fees and commissions
expenses
Cash surrender amount
Net expenses of claim
settlement
Net provisions for insurance
contract reserves
Insurance policies dividend
expenses
Reinsurance expenses
Taxes and surcharges 6423607854.88 9200633914.43
Selling expenses 326431516.27 293473043.49
Administrative expenses 2204675261.15 1997367969.54
Research and development
expenses 1702884233.90 1371028486.34
Financial expense 5233634108.25 5364763870.82
Including: Interest
expenses 4342840074.59 4558991721.03
Interest income 372209233.74 455728555.41
Add: Other income 2353426901.38 1015629245.71Investment income (”-” for
loss) -137197845.63 -36566983.25
Including: Gains from
investments in associates and joint 99867650.80 76784860.69
ventures
Gain from
derecognition of financial assets at -174694586.97
amortized costForeign exchange gain (”-”
for loss)
Gain from net exposure ofhedging (”-” for loss)
Gains from changes of fairvalue (”-” for loss) 325003215.29 370550373.91Credit impairment loss (”-”
for loss) -18616993.86 -108054345.28Assets impairment loss (”-”
for loss) -1501661777.85 -593692020.24
Gain from disposal of assets(”-” for loss) 2538670.78 -3063798.81
136 / 3522024 Annual Report 137III. Operating profit (”-” for loss) 8549503513.11 8899808437.58
Add: Non-operating income 278592852.79 79815457.88
Less: Non-operating expenses 8310703.66 106391688.27IV. Total profit (”-” for loss) 8819785662.24 8873232207.19
Less: Income tax expenses 1766778779.71 1968768270.41V. Net profit (”-” for loss) 7053006882.53 6904463936.78
(I) Classified by continuity of operations
1.Net profit from continuingoperations (”-” for loss) 7053006882.53 6904463936.78
2.Net profit from discontinuedoperations (”-” for loss)
(II) Classified by attribution to ownership
1.Net profit attributable toshareholders of the parent (”-” for 7043568223.60 6904603862.76
loss)
2.Net profit attributable tominority interests (”-” for loss) 9438658.93 -139925.98
VI. Other comprehensive income -
after tax -16756867.96 40427663.98
(I) Other comprehensive income
- after tax attributable to owners of -16756867.96 40427663.98
the parent
1. Other comprehensive
income not reclassified into profit or
loss subsequently
(1)Changes in remeasurement of
defined benefit plan
(2)Share of other comprehensive
income of the equity method
investments
(3)Changes in fair value of other
equity instruments investment
(4)Changes in fair value of the
Company’s own credit risks
2. Other comprehensive
income that will be reclassified into -16756867.96 40427663.98
profit or loss subsequently
(1)Share of other comprehensive
income of associates and joint
ventures under equity method
(2)Changes in the fair value of
other debt investments
(3)Reclassification of financial
assets recognised as other
comprehensive income
(4)Credit impairment loss of
other debt investments
(5)Cash flow hedging reserve -57170401.70 6252291.04
(6)Translation of foreign
currency financial statements 40413533.74 34175372.94
(7)Others
(II) Other comprehensive income
137 / 3522024 Annual Report 138
- after tax attributable to minority
interests
VII. Total comprehensive income 7036250014.57 6944891600.76
(I) Total comprehensive income
attributable to owners of the parent 7026811355.64 6945031526.74
(II) Total comprehensive income
attributable to minority interests 9438658.93 -139925.98
VIII. Earnings per share:
(I) Basic earnings per share (RMB
per share) 1.00 0.98
(II) Diluted earnings per share
(RMB per share) 1.00 0.98
In the current period if a merger of enterprises under the same control occurs the net profit realized
by acquiree before the merger is: 0 yuan the net profit realized by acquiree in the previous period is:
0 yuan.
Legal representative: Fan Hongwei
Person in charge of financial function: Liu Xuefen
Head of Accounting Agency (Prepared by): Zheng Minxia
Parent company income statement
For the year ended 31 December 2024
Unit: Yuan Currency: RMB
Item Note 2024 2023
I. Revenue from operations 553802144.20 3454179.12
Less: Cost of operations 3031978.73 2011877.89
Taxes and surcharges 34118493.29 25042286.44
Selling expenses
Administrative expenses 126794792.81 129668253.01
Research and development
expenses
Financial expense 38172957.19 47325474.75
Including: Interest expenses 38645198.63 47719397.32
Interest income 496815.72 417251.35
Add: Other income 148223.25 17478025.50Investment income (”-” for
loss) 1820989881.02 1521000000.00
Including: Gains from
investments in associates and joint
ventures
Gain from derecognition
of financial assets at amortized cost
Gain from net exposure ofhedging (”-” for loss)
Gains from changes of fairvalue (”-” for loss)Credit impairment loss (”-” for
loss) -16241487.65 -3534195.83Assets impairment loss (”-” for
loss)
138 / 3522024 Annual Report 139
Gain from disposal of assets(”-” for loss) 83354.32 54000.00II. Operating profit (”-” for loss) 2156663893.12 1334404116.70
Add: Non-operating income 20537.22
Less: Non-operating expensesIII. Total profit (”-” for loss) 2156663893.12 1334424653.92
Less: Income tax expensesIV. Net profit (”-” for loss) 2156663893.12 1334424653.92
(I) Net profit from continuingoperations (”-” for loss) 2156663893.12 1334424653.92
(II) Net profit from discontinuedoperations (”-” for loss)
V. Other comprehensive income - after
tax
(I) Other comprehensive income
not reclassified into profit or loss
subsequently
1.Changes in remeasurement of
defined benefit plan
2.Share of other comprehensive
income of the equity method
investments
3.Changes in fair value of other
equity instruments investment
4.Changes in fair value of the
Company’s own credit risks
(II) Other comprehensive income
that will be reclassified into profit or
loss subsequently
1.Share of other comprehensive
income of associates and joint
ventures under equity method
2.Changes in the fair value of
other debt investments
3.Reclassification of financial
assets recognised as other
comprehensive income
4.Credit impairment loss of other
debt investments
5.Cash flow hedging reserve
6.Translation of foreign currency
financial statements
7.Others
VI. Total comprehensive income 2156663893.12 1334424653.92
VII. Earnings per share:
(I) Basic earnings per share
(RMB per share)
(II) Diluted earnings per share
(RMB per share)
Legal representative: Fan Hongwei
Person in charge of financial function: Liu Xuefen
139 / 3522024 Annual Report 140
Head of Accounting Agency (Prepared by): Zheng Minxia
Consolidated Cash Flow Statement
For the year ended 31 December 2024
Unit: Yuan Currency: RMB
Item Note 2024 2023
I. Cash flows from operating activities:
Cash received from sales of
goods or rendering of services 277215781320.60 253368629479.01
Net increase in deposits from
customers and inter-banks
Net increase in due to central
bank
Net increase in fund
borrowings from other financial
institutes
Cash received from insurance
premium of original insurance
contracts
Net cash received from
reinsurance business
Net increase in insured’s
deposits and investments
Cash received from interests
fees and commissions 171637620.09 88560362.90
Net increase of placement from
banks and other financial
institutions
Net increase in fund of
repurchase business
Net cash received in securities
brokerage agency
Tax refund received 1056189221.48 1733346941.05
Other cash received relating to
operating activities 4870436651.18 5496564458.04
Sub-total of cash inflows 283314044813.35 260687101241.00
Cash paid for goods and
services 238334668001.04 216905242986.13
Net increase in issued loans
and advance
Net increase in deposits in
central bank and inter-banks
Cash paid for claims of original
insurance contracts
Net increase in due from banks
and other financial institutions
Cash paid for interest fees and
commission
Cash paid for policy dividends
Cash paid to and on behalf of 4783377478.79 4127786612.89
140 / 3522024 Annual Report 141
employees
Payments of all types of taxes 13545605516.74 13644805641.55
Other cash paid relating to
operating activities 3917828560.85 2473475871.46
Sub-total of cash outflows 260581479557.42 237151311112.03
Net cash flows from
operating activities 22732565255.93 23535790128.97
II. Cash flows from investing activities:
Cash received from disposal of
investments 4880934436.96 5107392261.85
Cash received from returns on
investments 6481135.51 10065585.08
Net cash received from
disposal of fixed assets intangible 14666736.84 19140467.53
assets and other long-term assets
Cash received from disposal of
subsidiaries and other business
units
Other cash received relating to
investing activities 799090647.24 1314070624.32
Sub-total of cash inflows 5701172956.55 6450668938.78
Cash paid to acquire fixed
assets intangible assets and 21814133827.51 39740884349.33
other long-term assets
Cash paid to acquire
investments 4495189641.44 4635580702.27
Net increase in pledged loans
Cash paid to acquire
subsidiaries and other business
units
Other cash paid relating to
investing activities 294114503.57 888703263.24
Sub-total of cash outflows 26603437972.52 45265168314.84
Net cash flows from
investing activities -20902265015.97 -38814499376.06
III. Cash flows from financing activities :
Cash received from capital
contribution 3300000.00
Including: Cash received from
investment by minority interests 3300000.00
of subsidiaries
Cash received from borrowings 115704136828.87 105716625805.89
Cash received relating to other
financing activities 7140864483.31 7661905079.75
Sub-total of cash inflows 122848301312.18 113378530885.64
Cash repayments of amounts
borrowed 101349244062.64 91910909309.97
Cash payments for interest
expenses and distribution of 9441369162.14 5772677855.06
dividends or profits
Including: Dividend paid to
minority interests of subsidiaries
141 / 3522024 Annual Report 142
Other cash payments relating
to financing activities 4240407078.14 5785239564.93
Sub-total of cash outflows 115031020302.92 103468826729.96
Net cash flows from
financing activities 7817281009.26 9909704155.68
IV. Effect of foreign exchange
rate changes on cash -126442956.11 70624033.36
V. Net increase in cash and cash
equivalents 9521138293.11 -5298381058.05
Add: Opening balance of cash
and cash equivalent 15025322771.34 20323703829.39
VI. Closing balance of cash and
cash equivalent 24546461064.45 15025322771.34
Legal representative: Fan Hongwei
Person in charge of financial function: Liu Xuefen
Head of Accounting Agency (Prepared by): Zheng Minxia
Parent Company Cash Flow Statement
For the year ended 31 December 2024
Unit: Yuan Currency: RMB
Item Note 2024 2023
I. Cash flows from operating activities:
Cash received from sales of
goods or rendering of services 847761716.27
Tax refund received
Other cash received relating to
operating activities 2316255719.73 110866078.81
Sub-total of cash inflows 3164017436.00 110866078.81
Cash paid for goods and
services 269027119.63
Cash paid to and on behalf of
employees 10329838.17 13579054.13
Payments of all types of taxes 83725783.24 16469707.26
Other cash paid relating to
operating activities 1498276155.48 1196356798.85
Sub-total of cash outflows 1861358896.52 1226405560.24
Net cash flows from operating
activities 1302658539.48 -1115539481.43
II. Cash flows from investing activities:
Cash received from disposal of
investments
Cash received from returns on
investments 1703550000.00 2239450000.00
Net cash received from
disposal of fixed assets intangible 116000.00 68535.40
assets and other long-term assets
Cash received from disposal of
subsidiaries and other business
units
142 / 3522024 Annual Report 143
Other cash received relating to
investing activities
Sub-total of cash inflows 1703666000.00 2239518535.40
Cash paid to acquire fixed
assets intangible assets and other 3835730.47 28460874.50
long-term assets
Cash paid to acquire
investments 56000000.00 50000000.00
Cash paid to acquire
subsidiaries and other business
units
Other cash paid relating to
investing activities
Sub-total of cash outflows 59835730.47 78460874.50
Net cash flows from
investing activities 1643830269.53 2161057660.90
III. Cash flows from financing activities :
Cash received from capital
contribution
Cash received from borrowings 999000000.00
Cash received relating to other
financing activities 1998113207.54
Sub-total of cash inflows 1998113207.54 999000000.00
Cash repayments of amounts
borrowed 1000000000.00 2000000000.00
Cash payments for interest
expenses and distribution of 3906804882.30 62100000.00
dividends or profits
Other cash payments relating
to financing activities
Sub-total of cash outflows 4906804882.30 2062100000.00
Net cash flows from
financing activities -2908691674.76 -1063100000.00
IV. Effect of foreign exchange
rate changes on cash
V. Net increase in cash and cash
equivalents 37797134.25 -17581820.53
Add: Opening balance of cash
and cash equivalent 14398907.50 31980728.03
VI. Closing balance of cash and
cash equivalent 52196041.75 14398907.50
Legal representative: Fan Hongwei
Person in charge of financial function: Liu Xuefen
Head of Accounting Agency (Prepared by): Zheng Minxia
143 / 3522024 Annual Report 144
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
Unit: Yuan Currency: RMB
2024
Equity attributable to the parent company
Other equity Minorit
Item Paid-in instruments Less: Other Gen y Total
capital Trea eral owners'Prefe Perp Capital compre Specific Surplus Undistribu Oth interest
(or Share reserve suryrred etual Oth shar hensive reserve reserve
risk ted profits ers Subtotal s equity
capital)) reseshar bond ers es income rve
es s
I.Balance
at end 703909 1876358 -96246 109358 995318 3309466 61612 5999856
of 9786.00 6176.98 53.08 123.52 771.37 2821.91 87.36 2314.06
previous 5999240
year 1026.70
Add:
Changes
in
accounti
ng
policies
Cor
rection
of errors
Oth
ers
II. 703909 1876358 -96246 109358 995318 3309466 5999240 61612 5999856
Balance 9786.00 6176.98 53.08 123.52 771.37 2821.91 1026.70 87.36 2314.06
144 / 3522024 Annual Report 145
in
beginnin
g of year
III.Movem
ent over
the year 8158442 -16756 169885 920723 3079990 3406776 12224 3419000( “- “for 3.55 867.96 321.53 45.20 996.10 218.42 284.76 503.18decreas
e)
(I)
Total
compre -16756 7043568 94386 7036250
hensive 867.96 223.60 7026811 58.93 014.57
income 355.64
(II)
Owner’s
contribu
tions 8158442 27856 8437004
and 3.55 25.83 9.38
decreas
e of 8158442
capital 3.55
1.
Capital
contribu 73000 7300000.tion 00.00 00
from
owner
2.
Increase
in
owners’
145 / 3522024 Annual Report 146
equity
resulted
from
other
equity
instrum
ents
3.
Increase
in
owners’
equity
resulted 7707004 7707004
from 9.38 9.38
share-ba
sed
paymen 7707004
ts 9.38
4.4514374.4514374.-4514
Others 17 17 374.17
(III)
Appropr 920723 -396357 -387150
iation of 45.20 7227.50 -387150 4882.30
profits 4882.30
1.
Transfer
to 920723 -920723
surplus 45.20 45.20
reserve
2.
Transfer
to
general
146 / 3522024 Annual Report 147
risk
reserve
3.
Distribut
ion to
owners -387150 -387150
(or 4882.30 4882.30
sharehol -387150
ders) 4882.30
4.
Others
(IV)
Transfer
within
equity
1.
Capital
reserve
converti
ng into
share
capital
(or
Share
capital)
2.
Surplus
reserve
converti
ng into
share
capital
(or
147 / 3522024 Annual Report 148
Share
capital)
3.
Surplus
reserve
cover
the
deficit
4.
Changes
of
equity
from the
revaluat
ion of
defined
benefit
plan
5. Other
compre
hensive
income
transfer
to
retained
earnings
6.
Others
(V)
Specific 169885321.53 1698853
1698853
reserve 21.53 21.53
1.39235939235923923592
Appropr 242.80 42.80 42.80
148 / 3522024 Annual Report 149
iation
for the
year
2. Used
in the 222473 2224739 2224739
year 921.27 21.27 21.27
(VI)
Others
IV.Balance 703909 1884517 -26381 279243 108739 3617465 18385 6341756
at end 9786.00 0600.53 521.04 445.05 1116.57 3818.01 6339917 572.12 2817.24
of year 7245.12
2023
Equity attributable to the parent company
Other equity
Less
Item Paid-in instruments
Gene
: Other Minority TOTAL
ral Undistribu
capital Capital Trea comprehe Specific Surplus Oth interest OWNERS’
Prefe risk ted Subtotal
(or Share Perpe
rred Oth reserve
sury nsive reserve reserve ers s EQUITY
rese
tual profitscapital) sharshare incomeers rve
bonds es
s
I.Balance
703909918686516-50052160223905565262798125286254357846052920389
at end of - - -
786.00127.76317.069.79700.75029.77567.0101.49568.50
previous
year
Add:
Changes
in
accounti
149 / 3522024 Annual Report 150
ng
policies
Corr
ection of
errors
Oth
ers
II.Balance
703909918686516-50052160223905565262798125286254357846052920389
in
786.00127.76317.069.79700.75029.77567.0101.49568.50
beginnin
g of year
III.Movement
over the
7707004940427610775589753068148507129857-516847078172year (“-.2263.98883.7370.62792.14459.69714.13745.56“fordecrease
)
(I)
Total
40427669046036945031-1399256944891
comprehe
63.98862.76526.74.98600.76
nsive
income
(II)
Owner’s
contribu
7707004977070049-5154425525261
tions and.22.22788.15.07
decrease
of
capital
1.
-51544-5154478
Capital
788.158.15
contribu
150 / 3522024 Annual Report 151
tion from
owner
2.
Increase
in
owners’
equity
resulted
from
other
equity
instrume
nts
3.
Increase
in
owners’
equity 77070049 77070049 77070049
resulted .22 .22 .22
from
share-ba
sed
payments
4. Others
(III)
Appropri 897530 -8975307
ation of 70.62 0.62
profits
1.
Transfer
897530-8975307
to
70.620.62
surplus
reserve
2.
Transfer
151 / 3522024 Annual Report 152
to
general
risk
reserve
3.
Distribu
tion to
owners
(or
sharehol
ders)
4. Others
(IV)
Transfer
within
equity
1.
Capital
reserve
converti
ng into
share
capital
(or Share
capital)
2.
Surplus
reserve
converti
ng into
share
capital
(or Share
capital)
3.
152 / 3522024 Annual Report 153
Surplus
reserve
cover the
deficit
4.
Changes
of equity
from the
revaluat
ion of
defined
benefit
plan
5. Other
comprehe
nsive
income
transfer
to
retained
earnings
6. Others
(V)
1077551077558810775588
Specific
883.733.733.73
reserve
1.
Appropri 428804 42880400 42880400
ation for 002.16 2.16 2.16
the year
2. Used
3210483210481132104811
in the
118.438.438.43
year
(VI)
Others
IV. 7039099 18763586 -96246 109358 995318 33094662 59992401 616128 59998562
153 / 3522024 Annual Report 154
Balance 786.00 176.98 53.08 123.52 771.37 821.91 026.70 7.36 314.06
at end of
year
Legal representative: Fan Hongwei
Person in charge of financial function: Liu Xuefen
Head of Accounting Agency (Prepared by): Zheng Minxia
Parent Company Statement of Changes in Owners' Equity
For the year ended 31 December 2024
unit:Yuan Currency:RMB
2024
project Paid-in capital
Other equity instruments Less: Other Special undistributed Total owners'
(or share Preferre Perpetua othe Capital reserve Treasur comprehensiv reserve Surplus reserve
capital) d Stock l Bond r y stock e income s
profit equity
1. Balance at the
end of the 7039099786.0 24142978843.3 2813304057.6 6812054666.8 40807437353.80 4 6 0 0
previous year
Add: Changes in
accounting
policies
Correction
of prior period
errors
other
2. Balance at the
beginning of this 7039099786.0 24142978843.3 2813304057.6 6812054666.8 40807437353.80 4 6 0 0
year
3.
Increase/decreas
e amount in this -1930507378.4 -1714840989.1
period (decrease 215666389.31 9 8
is indicated by
“-”)
154 / 3522024 Annual Report 155
(I) Total
comprehensive 2156663893.12 2156663893.12
income
2. Owners’
capital
contribution and
capital reduction
1. Common stock
contributed by
owners
2. Capital
invested by
holders of other
equity
instruments
3. Amount of
share-based
payment
recorded in
owners' equity
4. Others
(III) Profit
215666389.31-4087171271.6-3871504882.3
distribution 1 0
1. Withdrawal of
215666389.31-215666389.31
surplus reserves
2. Distribution to
owners (or -3871504882.3 -3871504882.30 0
shareholders)
3. Others
(IV) Internal
transfer of
owners’ equity
1. Capital reserve
converted into
capital (or share
155 / 3522024 Annual Report 156
capital)
2. Transfer
surplus reserves
to increase
capital (or share
capital)
3. Surplus
reserves to make
up for losses
4. Carry forward
retained
earnings for
changes in
defined benefit
plans
5. Other
comprehensive
income carried
forward to
retained
earnings
6. Others
(V) Special
reserves
1. Extraction of
this issue
2. Use in this
issue
(VI) Others
IV. Ending
balance of this 7039099786.0 24142978843.3 3028970446.9 4881547288.3 39092596364.60 4 7 1 2
period
156 / 3522024 Annual Report 157
2023
Other equity instruments
Item Paid-in capital
Less: Other Specif
(or Share Preferr Perpetu Othe Capital reserve
Treasu comprehens ic Surplus Undistributed Total
capital) ed al ry ive income reserv reserve profits owners’equity
shares bonds rs shares e
I. Balance at
end of 7039099786 2414297884 2679861592 5611072478 3947301269
previous .00 3.34 .27 .27 9.88
year
Add:
Changes in
accounting
policies
Correct
ion of errors
Others
II. Balance in
beginning of 7039099786 - 2414297884 2679861592 5611072478 3947301269
year .00 3.34 .27 .27 9.88
III.Movement
over the 133442465.3 1200982188 1334424653.year ( “- “for 9 .53 92decrease)
(I) Total
comprehens 1334424653 1334424653.ive income .92 92
(II)
Owner’s
contribution
s and
decrease of
capital
157 / 3522024 Annual Report 158
1. Capital
contribution
from owner
2. Increase
in
owners’equi
ty resulted
from other
equity
instruments
3. Increase
in
owners’equi
ty resulted
from
share-based
payments
4. Others
(III)
Appropriatio 133442465.3 -133442465.n of profits 9 39
1. Transfer
to surplus 133442465.3 -133442465.reserve 9 39
2.
Distribution
to owners
(or
shareholder
s)
3. Others
(IV)
Transfer
158 / 3522024 Annual Report 159
within
equity
1. Capital
reserve
converting
into share
capital (or
Share
capital)
2. Surplus
reserve
converting
into share
capital (or
Share
capital)
3. Surplus
reserve
cover the
deficit
4. Changes
of equity
from the
revaluation
of defined
benefit plan
5. Other
comprehens
ive income
transfer to
retained
earnings
6. Others
159 / 3522024 Annual Report 160
(V) Specific
reserve
1.
Appropriatio
n for the
year
2. Used in
the year
(VI) Others
IV. Balance
at end of 7039099786 2414297884 2813304057 6812054666 4080743735
year .00 3.34 .66 .80 3.80
Legal representative: Fan Hongwei
Person in charge of financial function: Liu Xuefen
Head of Accounting Agency (Prepared by): Zheng Minxia
160 / 3522024 Annual Report 161
III. Company information
1. Company profile
√适用□不适用Hengli Petrochemical Co. Ltd. (hereinafter referred to as ”the Company”) is formerly known asDalian Rubber & Plastics Machinery Co. Ltd. (hereinafter referred to as ”DXS”) whose name was
changed on 27 May 2016. The Company was founded on 9 March 1999. The Company's shares were
listed on the Shanghai Stock Exchange on 20 August 2001 with stock name: Hengli Petrochemical and
stock code: 600346. The unified social credit code of the Company is 912102001185762674 and the
registered address of the Company is OSBL Project-Public Works Office Building No.298 Changsong
Road Lingang Industrial Zone Changxing Island Dalian Liaoning Province. The legal representative is
Fan Hongwei. The Company’s registered capital is RMB 7039099786.00 with total number of shares
of 7039099786 shares with par value of RMB 1 each including 7039099786 shares of tradable A
shares without any restricted conditions.On 27 January 2016 China Securities Regulatory Commission approved the Company’s majorasset restructuring through document “Approval of Dalian Rubber & Plastics Machinery Co. Ltd.’ smajor asset restructuring and issue shares to Hengli Group Co. Ltd. to raise capital for assetspurchasing” (Securities Regulatory approval [2016] No.187). The major asset restructuring includes:
(1) DXS’s previous holding company Dalian State-owned Assets Investment and Operation Group Co.Ltd. (hereinafter referred to as ”DGJ”) transferred 200202495 shares (29.98% of DXS’s total capital) ofDXS’s shares to Hengli Group Co. Ltd. (hereinafter referred to as ”Hengli Group”) with a price of RMB
5.8435 per share;(2) DXS sold all assets and liabilities as of 30 June 2015 to Dalian Yinghui Machinery
Manufacturing Co. Ltd. and received cash as consideration;(3) The Company issued 1906327800
shares by private placement to acquire 85% shares in Jiangsu Hengli Chemical Fiber Co. Ltd.(hereinafter referred to as ”Hengli Chemical Fiber”) which were held by Hengli Group DechengliInternational Group Co. (hereinafter referred to as the ”Dechengli”) Jiangsu Hegao Investment Co. Ltd.(hereinafter referred to as ”Hegao Investment”) and Hailaide international investment Ltd. (hereinafterreferred to as ”Hailaide”) and paid in cash to acquire 14.99% shares of Hengli Chemical Fiber which
were held by Hegao investment. The issuance of shares mentioned above were verified by Ruihua
Certified Public Accountants (LLP) and issued capital verification reports Ruihua YanZi No.33030006
[2016] . After the issuance of shares the number of total outstanding shares of the Company increased
to 2574114642 shares;(4) The Company issued 251572300 shares by private placement to Jiangsu
Soho Investment Group Co. Ltd. Xiamen Xiangyu Co. Ltd. and other six specific investors to raise
supporting funds for this assets purchasing. The issuance of shares in above was verified by Ruihua
Certified Public Accountants (LLP) and issued capital verification reports Ruihua Yan Zi No.33030014
[2016] . After the issuance of shares the number of total outstanding shares of the Company increased
to 2825686942 shares.On 31 January 2018 according to the ”Approval on Purchase of Assets by issuance of shares toFan Hongwei and others and Raising of Supporting Funds by Hengli Petrochemical Co. Ltd.” (Zheng
Jian Xu Ke [2018] No.235) issued by China Securities Regulatory Commission the Company
implemented the assets restructuring which included (1) The Company issued 1719402983 shares by
private placement to Fan Hongwei Hengneng Investment (Dalian) Co. Ltd. (hereinafter referred toas ”Hengneng Investment”) and Hengfeng Investment (Dalian) Co. Ltd. (hereinafter referred toas ”Hengfeng Investment”) to acquire 100% shares of Hengli Investment (Dalian) Co. Ltd. (hereinafterreferred to as ”Hengli Investment”) and 100% shares of Hengli Petrochemical (Dalian) Refining Co. Ltd.(hereinafter referred to as ”Hengli Refining”). The share issuance mentioned above were verified by
Ruihua Certified Public Accountants (LLP) and issued capital verification reports Ruihua YanZi
No.33050001 [2018] . After the issuance of shares the number of total outstanding shares of the
Company increased to 4545089925 shares; (2) The Company issued 507700000 shares by private
placement to Ping An Asset Management Co. Ltd. Beixin Ruifeng Fund Management Co. Ltd. and
other six specific investors to raise supporting funds for this assets purchasing. The share issuance
mentioned above were verified by Ruihua Certified Public Accountants (LLP) and issued capital
161 / 3522024 Annual Report 162
verification reports Ruihua Yan Zi No.33050002 [2018] . After the issuance of shares the number of
total outstanding shares of the Company increased to 5052789925 shares.On 30 April 2019 the Company’s annual shareholders meeting of 2018 resolved the ”Proposal ofthe Company’s profit distribution and conversion of capital reserve to share capital of 2018”. Based on
the total number of outstanding shares of 4965774651 shares (being total shares of 5052789925
shares deducted by 87015274 share of stock repurchased) capital reserve is converted to share
capital by issuance of 0.4 shares for each share held by all shareholders and the total shares increased
by 1986309861 shares. Share registration date was 26 June 2019. After the increment in shares the
number of total outstanding shares of the Company increased to 7039099786 shares.The primary organizational structure of the Company: In accordance with the provisions of
national laws and regulations and the Company's articles of association a standardized multi-level
governance structure consisting of shareholders’ general meeting the board of directors the board of
supervisors and the management has been established; the board of directors has strategy committee
audit committee and remuneration committee nomination committee and the board office. The
Company has sales department purchasing department general manager's office personnel
department production department quality control department finance department securities
department and other major functional departments.The Company engages in petrochemical industry. The business scope is: production of chemical
products (excluding licensed chemical products); sales of chemical products (excluding licensed
chemical products); sales of petroleum products (excluding hazardous chemicals); sales of plastic
products; sales of synthetic materials; sales of rubber products; wholesale of hardware products; sales
of metal chains and other metal products; sales of metal materials; sales of metal ores; sales of
non-metallic minerals and products; information consulting services (excluding licensed information
consulting services); enterprise management consulting; sales of coal and products; sales of textiles
and raw materials; leasing of non-residential real estate; leasing services (excluding licensed leasing
services); domestic trade agency; offshore trade operations. The main products are refining chemical
products PTA polyester products etc.The financial statements and notes to the financial statements have been approved to issue by
the Board of Directors on 15th April 2025.IV. Basis of preparation of financial statements
1. Preparation basis
The financial statements of the Company are prepared on going concern basis and in compliance
with Accounting Standards for Business Enterprises and guidelines interpretations and other relatedprovisions promulgated by the Ministry of Finance (collectively” Accounting Standards for BusinessEnterprises”). In addition the Company also discloses relevant financial information according to
Information Disclosures Regulations for Companies that Offering Shares in Public No.15 - General
Provision of Preparing Financial Report (revised in 2014) issued announced by China Securities
Regulatory Commission.
2. Going concern
√适用□不适用
The Company has no events or circumstances that have caused significant doubts about the
assumption of going concern within 12 months after the end of the reporting period.V. Significant accounting policies and accounting estimates
Specific accounting policies and accounting estimates:
√适用□不适用
The Company and its subsidiaries determines certain specific accounting policies and accounting
estimates for impairment of receivables depreciation of fixed assets amortization of intangible assets
and revenue recognition according to the characteristics of the production and operation. Specific
162 / 3522024 Annual Report 163accounting policies refer to the note to financial statements such as “Significant Accounting Policiesand Accounting Estimates - Accounts Receivable” “Significant Accounting Policies and AccountingEstimates - Fixed Assets” “Significant Accounting Policies and Accounting Estimates - Intangible Assets”
and “Significant Accounting Policies and Accounting Estimates - Revenue”.
1. Statement of compliance with accounting standards for business enterprises
The financial statements have been prepared in compliance with the Accounting Standard for
Business Enterprises to truly and completely reflect the Company’s financial positions operating
results and cash flows.
2. Accounting period
The fiscal year runs from January 1 to December 31 of the Gregorian calendar.
3. Operating Cycle
√适用□不适用
The normal business cycle refers to the period from the purchase of assets for processing to the
realization of cash or cash equivalents. The Company considers 12 months as an operating cycle and
apply it as a standard for the liquidity of assets and liabilities.
4. Functional currency
The Company and domestic subsidiaries use Renminbi (“RMB”) as functional currency. Overseas
subsidiaries of the Company determine its functional currency as US dollar in accordance with its
primary economic environment of the business location and converted into RMB in preparation of
consolidated financial statements.The financial statements of the Company have been prepared in RMB.
5. Method for determining the importance criteria and the basis for selection
√适用□不适用
Item Importance criteria
Important construction in progress The book value at the end of the accounting
period is more than 1% of the total assets
Important non-wholly-owned subsidiaries Net assets account for more than 0.5% of the
consolidated net assets
important investment The amount incurred exceeds 500 million yuan
6. Accounting treatment for business combinations under common control and those under
different control
√适用□不适用
A business combination is a transaction or event that brings together two or more separate
entities into one reporting entity. Business combinations are classified into business combinations
involving enterprises under common control and business combinations not involving enterprises
under common control.
1．Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination and that control is not transitory.Assets acquired and liabilities assumed by acquirer in the business combination are measured at
their carrying amounts of the acquiree in the consolidated financial statements of the ultimate
163 / 3522024 Annual Report 164
controlling party at the combination date except for adjustments due to different accounting policies.The difference between the carrying amount of the consideration paid for the combination (or total
par value of shares issued) and the carrying amount of the net assets acquired is adjusted to capital
reserve. If the capital reserve is not sufficient to absorb the difference any excess is adjusted to
retained earnings.Business combinations involving entities under common control achieved in stages and involved
multiple transactions the difference between the carrying amount of the net assets acquired and the
sum of carrying amount of investment prior to combination date and carrying amount of new
considerations paid for the combination at the combination date is adjusted to capital reserve. If the
capital reserve is not sufficient to absorb the difference any excess is adjusted against retained
earnings. The profit or loss other comprehensive income and changes in other owner’s equity
recognized by the acquirer during the period from the later of initial investment date and the date that
the acquirer and acquiree both under common ultimate control to the combination date are offset the
opening retained earnings or profit for loss for the current period in the comparative statements
except for other comprehensive income arising from the remeasurement of the net benefit or net
asset change of the defined benefit plan by the investee.
2．Business combinations involving enterprises not under common control
A business combination involving enterprises not under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same party
or parties both before and after the business combination.Where the cost of combination exceeds the acquirer’s interest in the fair value of the acquiree’s
identifiable net assets the difference is recognized as goodwill. Where the cost of combination is less
than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets firstly the acquirer
shall reassess the measurement of the fair values of the acquiree’s identifiable assets liabilities and
contingent liabilities and measurement of the cost of combination and then if the cost of combination
is still less than the acquirer’s interest in the fair values of the acquiree’s identifiable net assets after
that reassessment the acquirer shall recognize the remaining difference immediately in profit or loss
for the current period.If at the date of combination or the end of the current period due to various factors the fair
value of each asset paid as consideration for the combination or the fair value of the identifiable assets
and liabilities of the purchased party is obtained during the combination cannot be reasonably
determined the Company calculates the value of business combination based on the temporarily
determinable value. If within the 12 months after acquisition additional information can prove the
existence of related information at acquisition date and the contingent consideration need to be
adjusted it is deemed to happen on the date of combination and retrospectively adjusted. Any
adjustment of consideration for the combination or value of identifiable assets or liabilities made after
12 months of combination the adjustment should follow Accounting Standard for Business Enterprise
No.28 – Changes in accounting policies accounting estimates and correction of error.Where the temporary difference obtained by the acquirer was not recognized due to inconformity
with the conditions applied for recognition of deferred income tax if within the 12 months after
acquisition additional information can prove the existence of related information at acquisition date
and the expected economic benefits on the acquisition date arising from deductible temporary
difference by the acquiree can be achieved relevant income tax assets can be recognized and goodwill
can be adjusted accordingly. If the goodwill is not sufficient the difference is recognized as profit or
loss for the current period. Apart from above the differences is taken into profit or loss of the current
period if the recognition of deferred income tax assets is related to the business combination.For business combinations involving entities not under common control achieved in stages that
involves multiple transactions the Company determine whether the multiple transactions belongs to a
single transactions in accordance with accounting standards. If the terms conditions and economic
impact of the disposal comply with any cases as following the multiple transactions should be
accounted as if a single transaction. * These transactions are concluded simultaneously or affected
by each other. * To reach a complete business results these transactions is as a whole. * Whether
one transaction happening or not is up to another transaction.* To assess one transaction separately
is not economical but assess along with other transactions they are economically justified.
164 / 3522024 Annual Report 165
In a business combination achieved in stages and considered as a single transaction the
transactions should be regard all as one acquisition. For those cannot be considered as a single
transaction the combination cost is the sum of consideration paid at acquisition date and fair value of
the acquiree's equity investment held prior to acquisition date; the cost of equity of the acquiree held
prior to acquisition date shall be re-measured at the fair value at acquisition date the difference
between the fair value and the carrying amount shall be recognized as investment income or loss for
the current period. Other comprehensive income and changes of investment equity under the equity
method of accounting related with acquiree's equity held prior to acquisition date shall be transferred
to investment profit or loss for current period at acquisition date besides there is other comprehensive
income incurred by the changes of net assets or net liabilities due to the remeasurement of defined
benefit plan.
3．Transaction costs for business combination
The overhead for the business combination including the expenses for audit legal services
valuation advisory and other administrative expenses are recorded in profit or loss for the current
period when incurred. The transaction costs of equity or debt instruments issued as the considerations
of business combination are included in the initial recognition amount of the equity or debt
instruments.
7. Judgment criteria for contro and basis of preparation of consolidated financial statements
√适用□不适用
1．Scope of consolidated financial statements
The scope of consolidated financial statements is determined on the basis of control. Control
exists when the Company has power over the investee; is exposed or has rights to variable returns
from its involvement with the investee; and has the ability to use its power to affect its returns. A
subsidiary is an entity that is controlled by the Company (including enterprise a portion of an investee
as a deemed separate entity and structured entity controlled by the enterprise).
2．Preparation of the consolidated financial statements
The consolidation scope of consolidated financial statements is determined on the basis of control
including the financial statements of the Company and all of its subsidiaries. In preparing consolidated
financial statements subsidiaries adopt the same accounting period and accounting policies as those of
the Company.All assets liabilities interests income fees and cash flows resulting from intra-group transactions
are eliminated on consolidation in full.Where a subsidiary or business has been acquired through a business combination involving
enterprises under common control in the reporting period the subsidiary or business is deemed to be
included in the consolidated financial statements from the date they are controlled by the ultimate
controlling party. Their operating results and cash flows are included in the consolidated income
statement and consolidated cash flow statement respectively from the date they are controlled by the
ultimate controlling party. During the reporting period the opening balance of the consolidated
balance sheet was being adjusted and the related items of the comparative statement were being
adjusted as if the reporting entity has exercised control since the time when the ultimate controlling
party began to control.Where a subsidiary has been acquired through a business combination involving entities not
under common control the opening balances of the consolidated balance sheet shall not be adjusted
for the subsidiary or the business the subsidiary's revenue expenses and profit shall be included in the
consolidated income statement and cash flows shall be included in the consolidated cash flow
statement from the acquisition date to the end of the reporting date.The shareholders’ equity of the subsidiaries that is not attributable to the Company is presented
under shareholders’ equity in the consolidated balance sheet as minority interest. The portion of net
profit or loss of subsidiaries for the period attributable to minority interest is presented in the
consolidated income statement under the profit or loss attributable to minority interest. When the
amount of loss attributable to the minority shareholders of a subsidiary exceeds the minority
165 / 3522024 Annual Report 166
shareholders’ portion of the opening balance of owners’ equity of the subsidiary the excess amount
shall be allocated against minority interest.
3．Acquiring minority interests of subsidiary and disposal of interests in subsidiary without losing
control
Where the Company acquires a minority interest from a subsidiary’s minority shareholders or
disposes of a portion of an interest in a subsidiary without a change in control the transaction is
treated as equity transaction and the book value of shareholder’s equity attributed to the Company
and to the minority interest is adjusted to reflect the change in the Company’s interest in the
subsidiaries. The difference between the proportion interests of the subsidiary’s net assets being
acquired or disposed and the amount of the consideration paid or received is adjusted to the capital
reserve (share premium) in the consolidated balance sheet with any excess adjusted to retained
earnings.
4．Losing control over the subsidiary
When the Company disposes of a subsidiary the income expenses and profit of the subsidiary
from the beginning of current period to the disposal date are included in the consolidated income
statement; the cash flows of the subsidiary from the beginning of current period to the disposal date is
included in the consolidated cash flow statement. For the loss of control over a subsidiary due to
disposal of a portion of the equity investment or other reasons the remaining equity is measured at
fair value on the date when the control is lost. The difference arising from the sum of consideration
received for disposal of equity interest and the fair value of remaining equity interest over the share of
net assets of the former subsidiary calculated continuously since the purchase date based on the
shareholding percentage before disposal are recognised as investment income in the period when the
control is lost. Other comprehensive income related to equity investment in the subsidiary is
accounted for on the same accounting treatment as direct disposal of relevant asset or liability by the
acquiree at the time when the control is lost (i. e. to be transferred to investment income except for
the changes arising from remeasuring net assets or net liabilities of defined benefit plan of the
subsidiary using the equity method). The remaining equity interests are measured subsequentlyaccording to ”Accounting Standard for Business Enterprises No.2 – Long-term Equity Investments”or ”Accounting Standard for Business Enterprises No.22 – Recognition and Measurement of FinancialInstruments”. For details please refer to the note “Significant Accounting Policies and AccountingEstimates - Long-term Equity Investments” or “Significant Accounting Policies and AccountingEstimates - Financial Instruments”.
5．Disposal of equity investment by stage-up until losing control
When the Company disposes of equity investment in a subsidiary by a stage-up approach with
multiple transactions until the control over the subsidiary is lost it shall determine whether these
multiple transactions related to the disposal of equity investment in a subsidiary until the control overthe subsidiary is lost belong to ”A single transaction”.For those arrangements qualified as a single transaction the carrying amount of long-term equity
investments relating to each transaction of disposal is derecognized the difference between the
consideration received and the carrying amount of disposed long-term equity investments is
recognized as other comprehensive income and finally is recognized in profit or loss for the current
period at the date of losing control.For those arrangements are not regarded as a single transaction the accounting treatment shall
follow “disposal of interests in subsidiary without losing control” and “for the loss of control over asubsidiary due to disposal of a portion of the equity investment or other reasons” as appropriate. The
difference between each consideration received and the share of carrying value of net assets in
proportion to disposed portion of shareholding percentage in the subsidiary is recognized in capital
reserve as an equity transaction. Capital reserve is not transferred to profit or loss for the current
period when losing control.
8. Classification of joint arrangements and accounting treatment of joint operations
√适用□不适用
166 / 3522024 Annual Report 167
A joint arrangement is an arrangement in which two or more parties exercise joint control. Based
on the rights and obligations arising from its involvement in joint arrangements the Company classifies
joint arrangements as either joint operations or joint ventures.A joint venture is a joint arrangement whereby the Company has rights only to the net assets of
the arrangement. The Company accounts for its investments in joint ventures using the equity method
in accordance with the accounting policy for "Long-term Equity Investments Accounted for under the
Equity Method" as described in the "Significant Accounting Policies and Estimates – Long-term Equity
Investments" section of these notes.A joint operation is a joint arrangement whereby the Company has rights to the assets and
obligations for the liabilities relating to the arrangement. The Company recognizes the following items
in relation to its interest in a joint operation and accounts for them in accordance with the relevant
Accounting Standards for Business Enterprises:
1. Recognize the assets held individually by the Company and its share of jointly held assets;
2. Recognize the liabilities incurred individually by the Company and its share of jointly incurred
liabilities;
3. Recognize revenue from the sale of its share of output produced by the joint operation;
4. Recognize its share of revenue generated from the sale of output by the joint operation;
5. Recognize the expenses incurred individually by the Company and its share of expenses
incurred by the joint operation.When the Company invests or sells assets to a joint operation as a joint venture (the assets do not
constitute a business the same below) or purchases assets from a joint operation before such assets
are sold to a third party the Company only recognizes the portion of the profit or loss resulting from
the transaction that belongs to the other parties to the joint operation. If such assets suffer an asset
impairment loss that complies with the provisions of Accounting Standards for Enterprises No. 8 -
Impairment of Assets the Company recognizes the loss in full for the case of the Company investing or
selling assets to the joint operation; and recognizes the loss according to the share borne for the case
of the Company purchasing assets from the joint operation.
9. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for
payment. Cash equivalents refer to short-term (generally refers to the expiration within 3 months from
the purchase date) highly liquid investments that can be readily converted to cash and that are subject
to an insignificant risk of changes in value.
10. Foreign currency transactions and translation of financial statements prepared in foreign
currencies
√适用□不适用
1．Foreign currency transactions
Foreign currency transactions are translated into the functional currency of the Company at the
spot exchange rates (as announced by the People’s Bank of China) on the dates of the transactions.However the Company’s foreign currency exchange business or transactions involving foreign currency
conversion are converted into the amount of the recording currency according to the actual exchange
rate.
2．Translation method for foreign currency monetary and non-monetary items
At the balance sheet date Items in foreign currencies are translated using the spot exchange rates
at the balance sheet date. All the resulting exchange differences are taken to profit or loss except for
(1) those relating to foreign currency borrowings specifically for acquisition and construction of assets
qualified for capitalisation which are capitalised in accordance with the principle of capitalisation of
borrowing costs; (2) non-monetary foreign currency items are designated as part of the hedge of the
Company’s net investment of a foreign operation are recognised in other comprehensive income until
the net investment is disposed of at which the cumulative amount is reclassified to the profit or loss
167 / 3522024 Annual Report 168
for the current period; and (3) non-monetary foreign currency items measured at historical cost shall
still be translated at the spot exchange rates prevailing on the transaction dates while the amounts
denominated in the functional currencies do not change.Non-monetary foreign currency items measured at historical cost shall still be translated at the
spot exchange rates prevailing on the transaction dates while the amounts denominated in the
functional currencies do not change. Non-monetary foreign currency items measured at fair value are
translated at the spot exchange rates prevailing on the date on which the fair values are determined.The resulting exchange differences are recognised in profit or loss or as other comprehensive income
for the current period depending on the nature of the non-monetary item.
3．Translation of foreign currency financial statements
The financial statements denominated in foreign currency of a foreign operation are translated to
RMB in compliance with the following requirements: assets and liabilities on the balance sheet are
translated at the spot exchange rate prevailing at the balance sheet date; owner’s equity items except
for “undistributed profits” are translated at the spot exchange rates at the period on which such items
arose; income and expenses items in the income statement are translated at the average exchange
rate for the period in which the transaction occurred. The undistributed profits brought forward are
reported at the prior year’s closing balance; the undistributed profits as at the end of the year are
presented after translated the profit appropriation items; differences between the aggregate of assetand liability items and owners’ equity items are recognised as ”translation differences arising on thetranslation of financial statements denominated in foreign currencies” in other comprehensive income.On disposal of foreign operations and loss of control exchange differences arising from the translation
of financial statements denominated in foreign currencies related to the disposed foreign operations
which has been included in owners’ equity in the balance sheet shall be transferred to profit or loss in
whole or in proportionate share in the period in which the disposal took place.The cash flow statement is translated at the average exchange rate on the period of cash flow.The impact of exchange rate changes on cash is presented separately as "Effect of changes in exchangerates on cash and cash equivalents” in the cash flow statement.
11. Financial instruments
√适用□不适用
A financial instrument is any contract that gives rise to a financial asset of one enterprise and a
financial liability or equity instrument of another enterprise. Financial instruments include financial
assets financial liabilities and equity instruments.
1．Classification recognition and measurement of financial assets
(1) Recognition and initial measurement of financial assets and liabilities
Financial asset or financial liability will be recognised when the Company became one of the
parties under a financial instrument contract. For the purchase or sale of financial assets in a
conventional way the Company recognizes the assets received and liabilities assumed on the
transaction day.Financial assets and liabilities are measured at fair value upon initial recognition. For financial
assets measured at fair value through profit or loss relevant transaction costs are directly recognised
in profit or loss for the period. For other categories of financial assets and liabilities relevant
transaction costs are included in the amount initially recognised.. For accounts receivable that do not
have a significant financing component at initial recognition the transaction price determined in
accordance with the revenue recognition method described in this note "Significant Accounting Policies
and Accounting Estimates - Revenue" is initially measured.
(2) Classification and measurement of financial assets
The Company classifies the financial assets according to the business model for managing the
financial assets and characteristics of the contractual cash flows as follows: financial assets measured
at amortised cost financial assets measured at fair value through other comprehensive income and
financial assets measured at fair value through profit or loss.
1) Financial assets measured at amortised cost
168 / 3522024 Annual Report 169
A financial asset is measured at amortised cost if it meets both of the following conditions:
* The Company’s business model for managing such financial assets is to collect contractual cash
flows;* The contractual terms of the financial asset stipulate that cash flows generated on specific
dates are solely payments of principal and interest on the principal amount outstanding.Subsequent to initial recognition such financial assets are measured at amortised cost using the
effective interest method. A gain or loss on a financial asset that is measured at amortised cost shall be
recognised in profit or loss for the current period when the financial asset is derecognised amortised
using the effective interest method or with impairment recognised.For financial assets at amortized costs it is recognized on the initially recognized amount adjusted
by: (1) after deducting the already paid principal; (2) after multiplying or subtracting the accumulative
amount of amortization incurred from amortizing the balance between the initially recognized amount
and the amount of the maturity date by employing the actual interest rate method; and (3) after
deducting the impairment losses that have actually incurred (applicable to financial assets only).The effective interest method refers to the method whereby the post-amortization costs and the
interest incomes of different installments or interest expenses are calculated according to the effective
interests of the financial asset or financial liabilities (including a set of financial assets or financial
liabilities). The effective interest refers to the interest rate used to cash the future cash flow of a
financial asset or financial liability within the predicted term of existence or within a shorter applicable
term into the current carrying amount of the financial asset or financial liability. When determining the
effective interest the future cash flow shall be predicted on the basis of taking into account all the
contractual stipulations concerning the financial asset or financial liability (including the right to repay
the loans ahead of schedule call options similar options etc.) but the future credit losses shall not be
taken into account.The Company recognizes interest income based on the calculation of financial asset book balance
multiplied by the effective interest rate except for the following circumstances: * For purchased or
originated financial assets that have incurred credit impairment from the initial recognition their
interest income is determined on the financial asset amortization costs and credit-adjusted effective
interest rates; * For the purchased or originated financial assets without credit impairment but
become credit impaired in the subsequent period the interest income is determined according to the
amortized cost and effective interest rate of the financial asset. If the financial instrument has no credit
impairment due to the improvement of its credit risk in the subsequent period and this improvement
can be objectively related to an event that occurs after the application of the above regulations
interest income should be determined by multiplying the effective interest rate and the financial asset
book balance.
2) Financial assets measured at fair value through other comprehensive income
Financial asset is classified as measured at fair value through other comprehensive income if it
meets both of the following conditions: * The Company’s business model for managing such
financial assets is achieved both by collecting collect contractual cash flows and selling such financial a.* The contractual terms of the financial asset stipulate that cash flows generated on specific dates
are solely payments of principal and interest on the principal amount outstanding.Subsequent to initial recognition such financial assets are subsequently measured at fair value.Interest calculated using the effective interest method impairment losses or gains and foreign
exchange gains and losses are recognised in profit or loss for the current period and other gains or
losses are recognised in other comprehensive income. On derecognition the cumulative gain or loss
previously recognised in other comprehensive income is reclassified from other comprehensive income
to profit or loss.For non-trading equity instrument investment the Company can irrevocably designate the
financial assets measured at fair value through other comprehensive income. Such designation is made
on individual basis of each non-trading equity instrument investment which also qualified as equity
instruments in the issuer’s perspective. Subsequent to such designation dividend (except for return of
portion of investment costs) is recognized as profit or loss for the current period other gains or losses
(including exchange gain or loss) are recognized in other comprehensive income. On derecognition the
cumulative gain or loss previously recognised in other comprehensive income is reclassified from other
comprehensive income to profit or loss.
169 / 3522024 Annual Report 170
3) Financial assets measured at fair value through profit or loss
The Company classifies the financial assets other than those measured at amortised cost and
measured at fair value through other comprehensive income as financial assets measured at fair value
through profit or loss. Upon initial recognition the Company irrevocably designates certain financial
assets that are required to be measured at amortised cost or at fair value through other
comprehensive income as financial assets measured at fair value through profit or loss in order to
eliminate or significantly reduce accounting mismatch.Subsequent to initial recognition such financial assets are subsequently measured at fair value
any differences are gains or losses recorded in profit or loss for the current year.
(3) Classification and measurement of financial liabilities
The Company’s financial liabilities includes financial liabilities measured at fair value through
profit or loss financial liabilities that arise when a transfer of a financial asset does not qualify for
derecognition or continuing involvement financial guarantee contracts and financial liabilities at
amortized cost.
1) Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss includes trading financial liabilities
(including financial liabilities with embedded derivatives) and designated financial liabilities measured
at fair value through profit or loss. In a business combination involving enterprises not under common
control if the Company as a buyer recognizes a financial liability from the contingent consideration
the financial liability shall be accounted for at fair value through profit or loss.After initial recognition financial liabilities measured at fair value through profit or loss are
subsequently measured at fair value. Any gains or losses generated are recognized in profit or loss for
the current period.The amount of change in fair value of designated financial liabilities measured at fair value
through profit or loss due to changes in the Company’s own credit risk is included in other
comprehensive income unless the treatment causes or expands accounting mismatches in profit or loss.Other changes in fair value of this financial liability are included in profit or loss for the current period.Upon derecognition the accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in retained earnings.
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for
derecognition or continuing involvementSuch financial liabilities are measured in accordance with the method described in “Recognitionbasis and measurement method of transfer of financial assets” in “Significant accounting policies andaccounting estimates — Financial instruments” of this note.
3) Financial guarantee contracts
Financial guarantee contracts are contracts that require the issuer to make specified payments to
reimburse the contract holder for a loss the holder incurs because a specified debtor fails to make
payment when due in accordance with the terms of a debt instrument.Financial guarantee contracts are not belonging to the above 1) or 2) they are subsequently
measured at the higher of the following: * the amount of loss provision determined in accordance
with “Impairment of financial instruments” in “Significant accounting policies and accounting estimates— Financial instruments” of this note; * the balance of the initial recognition amount less the
accumulated amortization determined in accordance with the revenue recognition method described
in “Significant accounting policies and accounting estimates — Revenue” of this note.
4) Financial liabilities at amortized cost
Apart from the above 1) 2) or 3) the Company classifies the remaining financial liabilities as
financial liabilities at amortized cost.Such financial liabilities are measured at amortized cost using the effective interest rate method
after initial recognition and the resulting gains or losses are included in profit or loss for the current
period when they are derecognized or amortized in accordance with the effective interest rate
method.
(4) Equity instruments
Equity instruments refer to contracts that can prove the ownership of the Company's remaining
equity in assets after deducting all liabilities. The Company issues (including refinancing) repurchases
170 / 3522024 Annual Report 171
sells or cancels Equity instruments as a change in equity. Transaction costs related to equity
transactions are deducted from equity. The Company's various distributions to equity instruments
holders (excluding stock dividends) reduce shareholder equity. The Company does not recognise the
fair value changes of equity instruments.
(5) Derivative instruments and embedded derivative instruments
Derivative financial instruments include forward exchange contract currency exchange rate swap
agreement interest rate swap agreement and foreign currency option contract etc. Derivative financial
instruments are initially measured at the fair value of the date a derivative contract entered into and
subsequently measured at their fair value. Any gains or losses arising from changes in fair value are
directly recognized to profit or loss for the current period.Embedded derivatives refer to derivatives embedded in non-derivatives (ie host contracts). For
the hybrid contract composed of embedded derivatives and the host contract if the host contract is a
financial asset the Company does not split the embedded derivative from the hybrid contract but
applies the hybrid contract as a whole to the Company's accounting policies in classification of financial
assets. If the host contract included in the hybrid contract is not a financial asset and meets the
following conditions at the same time the Company will split the embedded derivative from the hybrid
contract and treat it as a separate derivative:
1) The economic characteristics and risks of embedded derivatives are not closely related to the
economic characteristics and risks of the host contract.
2) A separate instrument with the same terms as the embedded derivative meets the definition of
derivative.
3) The hybrid contract is not measured at fair value and its changes are included in profit or loss
for the current period for accounting treatment.If the embedded derivative is split from the hybrid contract the Company will account for the host
contract of the hybrid contract in accordance with the applicable accounting standards. If the Company
cannot reliably measure the fair value of the embedded derivative according to the terms and
conditions of the embedded derivative the fair value of the embedded derivative is determined based
on the difference between the fair value of the hybrid contract and the fair value of the host contract.After using the above method if the fair value of the embedded derivative on the acquisition date or
the subsequent balance sheet date cannot be measured separately the Company designates the
hybrid contract as a whole as financial assets at fair value through profit or loss.
2．Recognition and measurement of transfer of financial assets
Transfer of financial assets refers to the transference or deliverance of financial assets (or its cash
flows) to the other party (the transferee) other than the issuer of financial assets. The derecognition of
financial assets means that the Company transfers the previously recognized financial assets from its
balance sheet.The financial assets that meet one of the following conditions will be derecognized by the
Company: (1) the contractual right to receive cash flows of the financial asset is expired; (2) the
financial asset has been transferred and almost all risks and rewards of ownership of the financial
asset transferred to the transferee; (3) the financial asset has been transferred by the Company
foregone the control of the financial assets although the Company has neither transferred nor retained
almost all the risks and rewards of ownership of the financial asset.If the Company neither transfers nor retains almost all the risks and rewards of ownership of
financial assets and retains control of the financial assets it will continue to recognize the relevant
financial assets to the extent that they are continuing to be involved in the transferred financial assets
and recognises the relevant liabilities. The degree of continuing involvement in the transferred financial
assets refers to the level of risk on the exposed impact in changes in value of financial asset to the
Company.If the transfer of an entire financial asset satisfies the conditions for derecognition the difference
between the amounts of the following two items are included in profit or loss: (1) the carrying
amount of the transferred financial asset as of the date of derecognition; (2) the sum of consideration
received from the transfer of the financial asset and the accumulative amount of the changes of the
fair value originally included in other comprehensive income proportionate to the transferred financial
asset (financial assets transferred refer to debt instrument investments at fair value through other
171 / 3522024 Annual Report 172
comprehensive income). If the transfer of financial asset partially satisfies the conditions to
derecognition the entire carry amount of the transferred financial asset is between the portion which
is derecognized and the portion which is not apportioned according to their respective relative fair
value and the difference between the amounts of the following two items are included into profit or
loss: (1) the carrying amount of the portion which is derecognized; (2) the sum of consideration of
the portion which is derecognized and the portion of the accumulative amount of the changes in the
fair value originally included in other comprehensive income which is corresponding to the portion
which is derecognized (financial assets transferred refer to debt instrument investments at fair value
through other comprehensive income). For non-trading equity instruments designated by the Company
to be measured at fair value and whose changes are included in other comprehensive income if the
whole or part of the transfer meets the conditions for derecognition the difference calculated
according to the above method is included in retained earnings.
3．Conditions for derecognition of financial liabilities
If the current obligation of a financial liability (or part of it) has been discharged the Company
derecognizes the financial liability (or part of it). If the Company (borrower) and the lender sign an
agreement to replace the original financial liability by assuming a new financial liability and the
contract terms of the new financial liability and the original financial liability are substantially different
the original financial liability is derecognized and a new financial liability is recognized simultaneously.If the Company makes substantial amendments to the original financial liabilities (or part of them)
contract terms the original financial liabilities shall be derecognized and a new financial liability shall
be recognized in accordance with the revised terms.If the financial liability (or part of it) is derecognized the Company shall include the difference
between its book value and the consideration paid (including non-cash assets transferred out or
liabilities assumed) into profit or loss for the current period. If the Company repurchases part of its
financial liabilities the book value of the financial liabilities as a whole will be allocated according to
the proportion of their respective fair values at the repurchase date and the total fair value at the
repurchase date. The difference between the book value allocated to the derecognized portion and the
consideration paid (including non-cash assets transferred out or liabilities assumed) is included in profit
or loss for the current period.
4. Determination of the fair value of financial instruments
For the method for determining the fair value of financial assets and financial liabilities see this
note “Significant Accounting Policies and Accounting Estimates — Fair Value”.
5. Impairment of financial instruments
The Company accounts for impairment of financial assets at amortised cost contract assets debt
instrument investment at fair value through other comprehensive income lease receivables and
financial guarantee contracts as mentioned in "Classification and subsequent measurement of financial
liabilities" in "Significant Accounting Policies and Accounting Estimates - financial instruments" of this
note. ECLs are the weighted average of credit losses of financial instruments weighted by the risk of
default. Credit losses refer to the difference between all contractual cash flows receivable according to
the contract and discounted according to the original effective interest rate and all cash flows expected
to be received i. e. the present value of all cash shortages.For purchased or originated financial assets that have suffered credit impairment the Company
only recognizes the cumulative changes in expected credit losses for the entire duration of the period
since initial recognition as loss provisions on the balance sheet date.For receivables or contract assets formed by transactions regulated by “Accounting Standards forBusiness Enterprises No. 14 – Revenue” and lease receivables regulated by “Accounting Standards forBusiness Enterprises No. 21 – Leases” the Company uses a simplified measurement method to
measure the loss allowance based on the expected credit loss during the lifetime period.For financial instruments other than the above measurement methods the Company measures
loss allowance in accordance with the general method and assesses on each balance sheet date
whether its credit risk has increased significantly since initial recognition. If the credit risk has not
significantly increased since initial recognition and is in the first stage the company measures the loss
provision based on the expected credit loss amount of the financial instrument for the next 12 months.If the credit risk has significantly increased since initial recognition but has not yet experienced credit
172 / 3522024 Annual Report 173
impairment it is in the second stage and the company measures the loss provision based on the
expected credit loss amount for the entire duration. If the financial asset has experienced credit
impairment since initial recognition it is in the third stage and the company measures the loss
provision based on the expected credit loss amount for the entire duration.The expected credit loss for lifetime period refers to the expected credit loss caused by all possible
default events during the entire expected duration of the financial instrument. Expected credit loss in
the next 12 months refers to the event of financial instrument default that may occur within 12 months
after the balance sheet date (if the expected duration of the financial instrument is less than 12
months then the expected duration) which is a portion of expected credit losses for the entire
duration.The Company considers all reasonable and reliable information including forward-looking
information by comparing the risk of default of a financial instrument on the balance sheet date with
the risk of default on the initial recognition date to determine the relative changes in default risk of the
financial instrument during the expected lifetime and to assess whether the credit risk of financial
instruments has increased significantly since initial recognition. For financial instruments that cannot
obtain sufficient evidence of a significant increase in credit risk at a reasonable cost at the level of
individual instruments the Company considers whether the credit risk has increased significantly on a
portfolio basis. If the Company determines that a financial instrument has only a low credit risk on the
balance sheet date it is assumed that the credit risk of the financial instrument has not increased
significantly since initial recognition.The Company remeasures the expected credit losses on each balance sheet date and the
resulting increase or reversal of the loss allowance is included in profit or loss for the current period as
an impairment loss or gain. For financial assets measured at amortised cost the loss allowance offsets
the book value of the financial asset presented in the balance sheet; for debt instrument investments
measured at fair value through other comprehensive income the Company recognises loss allowance
in other comprehensive income and does not offset the book value of the financial asset presented in
the balance sheet.
6. Offset of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to settle
on a net basis or realize the asset and settle the liability simultaneously. Otherwise financial assets and
financial liabilities are separately shown in the balance sheet and not allowed to offset.
12. Notes Receivable
The Company determines the expected credit losses of notes receivable and conducts accounting
treatment in accordance with the simplified measurement method described in "Impairment of
Financial Instruments" in "Significant Accounting Policies and Accounting Estimates - Financial
Instruments" of this note. On the balance sheet date the credit losses of notes receivable are
measured based on the present value of the difference between the contractual cash flow receivable
and the expected cash flow receivable. The Company conducts separate impairment tests on notes
receivable with significantly different credit risk characteristics and estimates the expected credit
losses. The remaining notes receivable are divided into several portfolios based on their credit risk
characteristics. With reference to historical credit loss experience combined with current conditions
and considering forward-looking information the expected credit losses are estimated on a portfolio
basis.The categories and determination basis for bad debt portfolio provisions based on credit risk
characteristics
√适用□不适用
Name of group Determination basis
Bank acceptance bills group Acceptors are banks with low credit risk
Commercial acceptance bills group Acceptors are enterprises with high credit risk
173 / 3522024 Annual Report 174
A method for calculating the aging of credit risk characteristics based on aging
□适用√不适用
Judgment criteria for single provision of bad debts
√适用□不适用
The Company will conduct separate impairment tests for accounts receivable with significantly
different credit risk characteristics such as significantly deteriorating credit conditions of the debtor
low probability of future payment and credit impairment that have already occurred.
13. Accounts receivable
√适用□不适用
The Company determines the expected credit losses of accounts receivable and makes accounting
treatment in accordance with the simplified measurement method described in "Impairment of
Financial Instruments" in "Significant Accounting Policies and Accounting Estimates - Financial
Instruments" of this note. On the balance sheet date the Company measures the credit losses of
accounts receivable based on the present value of the difference between the contractual cash flow
that should be received and the cash flow expected to be received. The Company will conduct separate
impairment tests on accounts receivable with significantly different credit risk characteristics and
estimate expected credit losses. The remaining accounts receivable are divided into several portfolios
based on credit risk characteristics and expected credit losses are estimated on a portfolio basis
taking into account historical credit loss experience current conditions and forward-looking
information.The categories and determination basis for bad debt portfolio provisions based on credit risk
characteristics
√适用□不适用
Name of group Determination basis
Aging group Accounts receivable with similar credit riskcharacteristics by aging
Group of related parties in the scope of Receivables from related parties within the
consolidation scope of consolidation have similar credit riskcharacteristics
Group of high credit rating Accounts receivable of Fortune 500 clientswithin credit term
A method for calculating the aging of credit risk characteristics based on aging
√适用□不适用
The company counts and calculates the aging of accounts receivable based on the principle of
first-in first-out.Determination of bad debt provision according to individual items Judgment criteria for individual
items
√适用□不适用
The Company will conduct separate impairment tests for accounts receivable with significantly
different credit risk characteristics such as significantly deteriorating credit conditions of the debtor
low probability of future payment and credit impairment that have already occurred.
14. Receivables financing
√适用□不适用
174 / 3522024 Annual Report 175
The Company determines the expected credit losses of receivables financing and makes
accounting treatment in accordance with the general method described in "Impairment of Financial
Instruments" in "Significant Accounting Policies and Accounting Estimates - Financial Instruments" of
this note. On the balance sheet date the Company measures the credit loss of receivables financing
based on the present value of the difference between the contractual cash flow due and the expected
cash flow received. When the expected credit loss information of a single item of receivables financing
cannot be assessed at a reasonable cost the Company divides receivables financing into several groups
based on the characteristics of credit risk. On the basis of referring to historical credit loss experience
combining the current situation and considering forward-looking information the Company estimates
the expected credit losses on group basis.The categories and determination basis for bad debt portfolio provisions based on credit risk
characteristics
√适用□不适用
Name of group Determination basis
Including bank acceptance bills with low credit
Group of low credit risk risk letters of credit and other receivables
financing with low credit risk characteristics
A method for calculating the aging of credit risk characteristics based on aging
□适用√不适用
Judgment criteria for single provision for bad debt reserves
√适用□不适用
The Company will conduct separate impairment tests for accounts receivable with significantly
different credit risk characteristics such as significantly deteriorating credit conditions of the debtor
low probability of future payment and credit impairment that have already occurred.
15. Other receivables
√适用□不适用
The Company determines and accounts for the expected credit losses of other receivables in
accordance with the general method described in "Impairment of Financial Instruments" in "Significant
Accounting Policies and Accounting Estimates - Financial Instruments" of this note. On the balance
sheet date the credit losses of other receivables are measured at the present value of the difference
between the contractual cash flows to be collected and the cash flows expected to be collected. The
Company conducts impairment tests on other receivables with significantly different credit risk
characteristics separately and estimates expected credit losses; the remaining other receivables are
divided into several groups according to their credit risk characteristics and the expected credit losses
are estimated on a group basis with reference to historical credit loss experience combined with
current conditions and considering forward-looking information.The categories and determination basis for bad debt portfolio provisions based on credit risk
characteristics
√适用□不适用
Name of group Determination basis
Aging group Other receivables with similar credit risk characteristics byaging
Group of related parties in the Receivables from related parties within the scope of
175 / 3522024 Annual Report 176
scope of consolidation consolidation have similar credit risk characteristics
Group of related parties outside Receivables from related parties outside the scope of
the scope of consolidation consolidation have similar credit risk characteristics
Group of government receivables Other receivables such as government grants receivable andvarious tax refunds have similar credit risk characteristics
A method for calculating the aging of credit risk characteristics based on aging
√适用□不适用
The company counts and calculates the age of other receivables based on the principle of
first-in-first-out.Judgment criteria for single provision for bad debt reserves
√适用□不适用
The Company will conduct separate impairment tests for accounts receivable with significantly
different credit risk characteristics such as significantly deteriorating credit conditions of the debtor
low probability of future payment and credit impairment that have already occurred.
16. Inventories
√适用□不适用
Inventory category issue pricing method inventory system amortization method for low-value
consumables and packaging materials
√适用□不适用
(1) Inventories include finished products or commodities held for sale in daily activities in-process
products in the production process materials and materials consumed in the production process or the
provision of labor services in-transit materials and subcontracting processing materials.
(2) The inventory obtained by the Company is measured at actual cost. (1) The cost of purchased
inventory is the purchase cost of the inventory and the inventory cost obtained through further
processing is composed of the purchase cost and processing cost. (2) The book value of inventory
obtained in settlement under debt restructuring is determined on the fair value of the forfeited
creditor's rights and the relevant taxes and fees that can be directly attributed to the inventory when
the inventory reaches the current position and status. (3) Under the presumption that the exchange of
non-monetary assets has commercial substance and the fair value of the assets swapped in or out can
be reliably measured the book value of inventory swapped in the exchange of non-monetary assets is
usually determined on the basis of the fair value of the assets swapped out unless there is strong
evidence that the fair value of the swapped assets is more reliable; for non-monetary asset exchanges
that do not meet the above presumption the book value of the swapped assets and related taxes
payable are used as the cost of swapped in inventory. (4) The inventory acquired by the combination of
enterprises under common control is determined based on the book value of the acquiree; the
inventories acquired by the combination of enterprises not under common control are determined by
the fair value.
(3) The cost of inventories issued by enterprises is measured by the weighted average method.
(4). Amortization method for low-value consumables and packaging materials
Low-value consumables are one-off amortized when taken for use.Packaging materials are one-off amortized when taken for use.
(5) The inventory system is a perpetual inventory system.
Recognition criteria and accrual method for the provision for inventory impairment
√适用□不适用
On the balance sheet date inventory is measured at the lower of cost and net realizable value.The net realizable value of inventories is the amount after the estimated selling price of inventories
minus the estimated costs to be incurred to completion the estimated selling expenses and related
taxes. When determining the net realizable value of inventories based on the reliable evidence
176 / 3522024 Annual Report 177
obtained taking into account the purpose of holding the inventory and the impact of events after the
balance sheet date except for clear evidence that the market price on the balance sheet date is
abnormal the net realizable value of inventory items at the end of the current period is determined on
the basis of the market price on the balance sheet date of which:
(1) The inventory of finished goods commodities and materials used for sale such as commodities
directly used for sale is determined by the amount of the estimated selling price of the inventory
minus the estimated selling expenses and related taxes during normal production and operation ;
(2) For the inventory of materials that need to be processed in the normal production and
operation process the net realizable value is determined based on the estimated selling price of the
finished product minus the estimated cost at the time of completion the estimated selling expenses
and related taxes. On the balance sheet date if a part of the same inventory has a contract price
agreement and other parts do not have a contract price the net realizable value is determined
separately and compared with its corresponding cost to determine the amount of provision for or
reversal of inventory impairment.At end of period the provision for inventory impairment is calculated according to a single
inventory item; but for a large number of inventories with low unit prices the provision for inventory
impairment is calculated according to the inventory category; For the product series produced and sold
in the same region has the same or similar end user and difficult to measure the inventory separately
from other items the provision for inventory impairment is combined.After accruing the provision for inventory impairment if the factors that previously reduced the
value of the inventory have disappeared and the net realizable value of the inventory is higher than its
book value it will be reversed within the original provision for inventory impairment and reversal
amount is included in profit or loss for the current period.The category and basis for determining the combined inventory falling price reserves as well as the
basis for determining the net realizable value of different types of inventory
□适用√不适用
The calculation method and basis for determining the net realizable value of inventory based on the
combination of inventory age and confirmed net realizable value
□适用√不适用
17. Contract assets
□适用√不适用
18. Non-current assets or disposal groups held for sale
□适用√不适用
Recognition criteria and accounting treatment methods for non-current assets or disposal groups
classified as held for sale
□适用√不适用
Recognition criteria and presentation method for discontinued operations
□适用√不适用
19. Long-term equity investment
√适用□不适用
Long-term equity investments referred to in this section refer to Long-term equity investments
that the Company has control joint control or significant influence over the investee including equity
investments in subsidiaries joint ventures and associates.
1. Judgment criteria for joint control and significant influence
177 / 3522024 Annual Report 178
Joint control refers to the common control of an arrangement in accordance with the relevant
agreement and related activities of the arrangement must be agreed upon by the parties sharing
control rights before they can make decisions. If the Company and other joint venturers jointly exercise
joint control over the investee and jointly control the investee and have rights to the net assets of the
investee the investee is a joint venture of the Company. When judging whether there is joint control
the protective rights enjoyed are not considered.Significant influence refers to the power to participate in the decision-making of an enterprise's
financial and operating decisions but it cannot control or jointly control the formulation of these
policies with other parties. If the Company can exert significant influence on the investee the investee
is an associate of the Company. When determining whether it can exert significant influence on the
invested unit consider that the investor directly or indirectly holds the voting shares of the invested
unit and the current executable potential voting rights held by the investor and other parties are
assumed to be converted into the investee the impact includes the current convertible warrants stock
options and convertible corporate bonds issued by the investee.
2. Determination of investment cost of long-term equity investments
(1) If the combination is formed under a business combination under common control the merger
party pays cash transfers non-cash assets assumes debt or issues equity securities as the acquisition
consideration and the share of owner’s equity of the acquiree on the consolidated financial
statements of the ultimate controlling party on the acquisition date as its initial investment cost. The
difference between the initial investment cost of long-term equity investments and the cash paid
non-cash assets transferred the book value of the debt assumed or the total face value of the shares
issued adjusts the capital reserve; if the capital reserve is insufficient to offset the retained earnings
are adjusted. Step by step acquisition of the equity of the acquiree under common control through
multiple transactions and ultimately forming a business combination under common control it shouldbe treated separately as whether ”single transaction”: if it belongs to a ” single transaction” each
transaction is treated collectively as a single transactions on obtaining control rights. If it does notbelong to a ”single transaction” the initial investment costs of long-term equity investments is the
share of the book value of the owner’s equity in the acquiree’s consolidated financial statements. The
difference between the cost and the book value of long-term equity investments before the
combination plus the book value of the new consideration paid for the shares on the acquisition date is
adjusted to the capital reserve; if the capital reserve is insufficient to offset the retained earnings are
adjusted. The equity investment held before the acquisition date by equity method or other
comprehensive income recognized for other equity instruments investment is temporarily not subject
to accounting treatment.
(2) If a business combination is not formed under common control the Company determines the
combination cost as the initial investment cost of long-term equity investments according to the
purchase date. The combination cost is the fair value of the assets paid liabilities incurred or assumed
by the purchaser to obtain control of the purchased party on the purchase date and the equity
securities issued. Overhead expenses such as auditing legal services evaluation and consulting and
other related Administrative expenses incurred by the purchaser for the business merger are included
in profit or loss for the current period; The transaction cost of the equity securities or debt securities
issued by the purchaser as the combination consideration is included in the initial recognition amount
of equity securities or debt securities. The Company regards the contingent consideration stipulated in
the acquisition agreement as part of the transfer consideration for the business combination and it is
included in the cost of the business combination according to its fair value on the date of purchase. For
a business combination not under common control that is realized step-by-step through multipletransactions it is determined whether the multiple transactions belong to a ”single transaction” inaccordance with the accounting standards for the enterprise. In the case of a ”single transaction” eachtransaction is treated as a whole transaction that obtains control. If it does not belong to a ”singletransaction” the initial investment cost of long-term equity investments calculated based on the cost
method shall be the sum of the original holding equity amount of the acquiree’s equity investment plus
the newly added investment cost; If the equity is accounted for using the equity method the relevant
other comprehensive income will not be accounted for temporarily; if the original equity investment is
invested by other equity instruments the difference between the fair value and the carrying amount
178 / 3522024 Annual Report 179
and the cumulative change in fair value originally included in other comprehensive income are
transferred to directly to retained earnings.
(3) Except for long-term equity investments formed by business combination other equity
investments are initially measured at cost: if they are obtained by paying cash the actual purchase
price is used as their initial investment cost; if they are obtained by issuing equity securities they are
stated at the fair value of equity securities as its initial investment cost. The expenses directly related
to the issuance of equity securities are determined in accordance with the relevant provisions of
Accounting Standards for Enterprises No.37-Presentation of Financial Instruments. On the presumption
that the fair value of the commercial substance and swapped-in assets or swapped-out assets can be
reliably measured the initial investment cost of long-term equity investments swapped in for
non-monetary assets are based on the fair value of swapped assets and related taxes payable unless
there is solid evidence that the fair value of the swapped assets is more reliable; for non-monetary
asset exchanges that do not meet the above presumption the carrying amount of the swapped assets
and related taxes payable shall be used as the Initial investment cost of long-term equity investments.The initial investment cost of long-term equity investments obtained through debt restructuring is
determined on the basis of the fair value of the waived claims. The expenses taxes and other
necessary expenses directly related to the acquisition of long-term equity investments are also
included in the investment cost.For the additional investment that can exert significant influence on the invested unit or
implement joint control but does not constitute control the cost of long-term equity investments is theoriginal holding determined in accordance with ”Accounting Standards for Business EnterprisesNo.22-Recognition and Measurement of Financial Instruments”. The sum of the fair value of equity
investment plus the newly added investment cost is used as the initial investment cost under equity
method. If the originally held equity investment is classified as other equity instruments investment
the difference between its fair value and carrying amount and the cumulative fair value change
originally included in other comprehensive income should be transferred to directly to retained
earnings.
3. Subsequent measurement and recognition of profit or loss of long-term equity investments
(1) Long-term equity investments measured at cost
The Company uses the cost method to account for long-term equity investments in subsidiaries.Apart from the cash dividends or profits declared but not yet paid that included in the acquisition of
the investment the Company recognizes the investment income in accordance with the cash dividends
or profits declared to be issued by the investee in the current period.
(2) Long-term equity investments under equity method
For long-term equity investments in associates and joint ventures the equity method is used.If the initial investment cost of long-term equity investments calculated by the equity method is
greater than the fair value share of the identifiable net assets of the investee when investing the initial
investment cost of long-term equity investments will not be adjusted; the initial investment cost of
long-term equity investments is less than the fair value share of the investee’s identifiable net assets at
the time of purchase the difference should be included in profit or loss for the current period while
adjusting the cost of long-term equity investments. After acquiring long-term equity investments if the
accounting policy and accounting period adopted by the investee are inconsistent with the Company
the financial statements of the investee shall be adjusted according to the Company's accounting
policies and accounting period and recognize the investment gain or loss and other comprehensive
income etc. The investment income and other comprehensive income shall be the share of the net
profit or loss and other comprehensive income of the investee and the carrying amount of long-term
equity investments is adjusted; The Company recognizes its share of the investee’s net profits or losses
based on the fair values of the investee’s individual separately identifiable assets at the time of
acquisition after making appropriate adjustments thereto in conformity with the accounting policies
and accounting periods of the Company. According to the profits or cash dividends declared to be
distributed by the investee the carrying amount of long-term equity investments is reduced
accordingly; adjust the carrying amount of long-term equity investments and include in owners' equity.The unrealized internal transaction gains and losses that occur between the Company and associates
and joint ventures are calculated based on the ratio enjoyed by the Company and are offset and
179 / 3522024 Annual Report 180
investment income is recognized on this basis. Unrealized internal transaction losses with the investee
that belong to assets impairment loss are fully recognized.When the Company confirms that it should share the losses of the investee it will be processed in
the following order: First offset the carrying amount of Long-term equity investments. Secondly if
the carrying amount of long-term equity investments is not enough to offset continue to recognise the
investment loss and offset the carrying amount of long-term receivable items to the limit of carrying
amounts of other long-term equity that substantially constitute net investment in the investee. After
the above-mentioned treatment if the Company still undertakes additional obligations according to
the investment contract or agreement the estimated liabilities shall be recognized according to the
obligations assumed and included in the current investment losses. If the investee realizes a net profit
in a later period the Company resumes the recognition of the profit sharing amount after the income
makes up for the unrecognized loss sharing amount.During the period of holding the investment the investee is included in the consolidated financial
statements based on the amount attributable to the investee in the consolidated financial statements'
net profit other comprehensive income and changes in other owners ‘equity.If the Company’s assets invested in joint ventures and associates constitute a business and the
investor acquires long-term equity investments but does not obtain control the fair value of the
investment business is used as the initial basis for the new investment cost of long-term equity
investments. The difference between the initial investment cost and the carrying amount of the
invested business is included in profit or loss for the current period. If the assets sold by the Company
to a joint venture or an associate constitute a business the difference between the consideration
received and the carrying amount of the business shall be included in profit or loss for the current
period. If the assets purchased by the Company from associates and joint ventures constitute businessthey shall be accounted for in accordance with the provisions of ”Accounting Standards for BusinessEnterprises No.20-Business Combinations” and the profits or losses related to the transaction shall be
fully recognised.
4. Disposal of long-term equity investments
For the disposal of Long-term equity investments the difference between the Carrying amount
and the actual consideration received shall be included in profit or loss for the current period.
(1) Disposal of long-term equity investments under equity method
For long-term equity investments that are accounted for using the equity method if the remaining
equity after disposal is still accounted for using the equity method when disposing of the investment
the same basis as the investee directly disposes of related assets or liabilities shall be used and the
relevant share of other comprehensive income in the accounting treatment. Owners ‘equity confirmed
by the investee in addition to changes in net profit or loss other comprehensive income and profit
distribution and owners’ equity are carried forward to profit or loss for the current period according to
the sharing.If the joint control or significant influence on the investee is lost due to the disposal of part of the
equity investment etc. the remaining equity after disposal shall be accounted according to the
financial instrument recognition and measurement standards. The difference between the fair value
and carrying of the day when the joint control or significant influence is lost the amount is included in
profit or loss for the current period. The other comprehensive income of the original equity investment
confirmed by the equity method of accounting shall be accounted for on the same basis as the investee
‘s direct disposal of related assets or liabilities when the equity method of accounting is terminated.Owners ‘equity confirmed by the investee in addition to changes in Owners’ equity other than net
profit or loss Other comprehensive income and profit distribution all transferred to profit or loss for
the current period when the equity method of accounting is terminated.
(2) Disposal of long-term equity investments under cost method
Long-term equity investments that are accounted for using the cost method and the remaining
equity is still accounted for using the cost method after disposal. Other comprehensive income
recoginsed by adopting equity method accounting or financial instrument recognition and
measurement standard accounting before obtaining control of the investee is treated on the same
basis as the invested unit directly disposes of related assets or liabilities and is treated according to
share of profit or loss for the current period. Changes in owners’ equity other than net profit or loss
180 / 3522024 Annual Report 181
other comprehensive income and net profit distribution in the investee’s net assets recognized by the
equity method of accounting are carried forward to profit or loss for the current period according to
the share.When the Company can no longer exercise control over an investee due to dilution of
shareholding by issuance of new shares to other investors by the investee but the Company can still
exercise joint control of or significant influence on the investee the difference between the Company’s
share of the increment of net assets in investee by the new shareholding percentage after new share
issuance and the pro-rata portion of carrying value of long term equity investment for the decreased
shareholding percentage is recognized in profit or loss in the current period. The remaining equity
investment is accounted for equity method as if it was acquired since initial acquisition.When the Company can no longer exercise control over an investee due to partial disposal of
equity investment or other reasons and the remaining equity investment after disposal can exercise
joint control of or significant influence over an investee the remaining equity investment is accounted
for under equity method and re-measured by equity method as if it has been acquired since date of
acquisition. Where the remaining equity investment can no longer exercise joint control of or
significant influence over an investee the remaining equity investment is accounted for in accordance
with Accounting Standard for Business Enterprises No.22-Recognization and Measurement of Financial
Instruments and the difference between the fair value and the carrying amount at the date of the loss
of control is charged to profit or loss for the current period.The Company's control over an investee is lost through multiple disposals and the multiple
disposals shall be viewed as one single transaction the multiple disposals is accounted for one single
transaction which result in the Company's loss of control over the investee. Each difference between
the consideration received and the book value of the investment disposed is recognized in other
comprehensive income and reclassified in full to profit or loss at the time when control over the
investee is loss.
20. Investment properties
(1). If the measurement of cost model is adopted:
Depreciation or amortization method
1. Investment properties refer to real estate held to earn rent or capital appreciation or both.
Including land use rights that have been leased land use rights that are held and ready to be
transferred after value-added leased buildings (including buildings used for rent after self-construction
or development activities are completed and future use during construction or development of leased
buildings).
2. Investment properties are initially measured according to cost and subsequent measurement is
made using the cost model. For subsequent expenditures related to Investment properties if the
economic benefits related to the asset are likely to flow in and their costs can be reliably measured
then they are included in the cost of Investment properties. Other subsequent expenditures are
included in profit or loss for the current period when they occur.
3. For Investment Properties measured by the cost model depreciation or amortization is
provided using the same method as fixed assets and intangible assets.
4. When the purpose of Investment properties is changed to self-use from the date of change the
Investment properties are converted into fixed assets or intangible assets and the carrying amount
before conversion is used as the credit value after conversion. When the purpose of self-used real
estate or Inventories is changed to earn rent or capital appreciation from the date of change the Fixed
assets or Intangible assets are converted into Investment properties and converted into Investment
properties measured by the cost model to the carrying amount before conversion As the booked value
after conversion; when converted to Investment properties measured by fair value model the fair
value on the conversion date is used as the booked value after conversion.
5. When Investment Properties are disposed of or permanently withdrawn from use and it is
expected that no financial benefits can be obtained from their disposal the recognition of the
investment properties is terminated. Investment properties sold transferred scrapped or damaged are
181 / 3522024 Annual Report 182
deducted from their carrying amount and related taxes and are included in profit or loss for the current
period.
21. Fixed assets
(1). Recognition conditions
√适用□不适用
Fixed assets refer to tangible assets fulfill the following characteristics: (1) held for the
production of goods provision of labor services lease or operation and (2) the service life exceeds one
fiscal year.Fixed assets are recognized if it meet the following conditions: (1) The economic benefits related
to the fixed assets are likely to flow into the enterprise and (2) The cost of the fixed assets can be
measured reliably. Subsequent expenditures related to fixed assets if they meet the above recognition
conditions are included in the cost of fixed assets; those that do not meet the above recognition
conditions are included in profit or loss for the current period when incurred.
(2). Depreciation method
√适用□不适用
Category Depreciation Estimate residual
Annual
method Useful life (years) value (%) depreciation rate(%)
Property and Straight line 10-30 5-10
buildings method 3.00-9.50
Specific Straight line 3-20 5-10
equipment method 4.50-31.67
General Straight line 3-15 5-10
equipment method 6.00-31.67
Transportation Straight line 2-15 5-10
equipment method 6.00-47.50
25 Light
Ship Straight line
Displacement
method Tonnage x 3.07Expected scrap
price
Note:
(1) The renovation costs of the fixed assets that meet the capitalization conditions will be accrued
separately in the shorter period of the two renovation periods and the useful life of the fixed assets.
(2) For the fixed assets that have been impaired the cumulative impairment provision of fixed
assets shall be deducted from the calculation of depreciation rate.
(3) The Company shall review the useful life estimated net residual value and depreciation
method of the fixed assets at least at the end of the year.Other instructions:
(1) Fixed assets idle for 3 consecutive months due to underutilization natural disasters etc.
(excluding seasonal idleness) are classified as idle assets. Idle assets are depreciated using the same
method as other assets in their category.
(2) If a fixed asset is held for disposal or is no longer expected to generate economic benefits
through use or disposal it is derecognized and depreciation and impairment charges cease.
(3) Gains or losses from the disposal of fixed assets (sale transfer retirement or damage) are
calculated as the disposal proceeds minus carrying amount and related taxes and are recognized in
current profit or loss.
182 / 3522024 Annual Report 183
(4) Major repair costs incurred during periodic inspections are capitalized as part of the fixed
asset’s cost if they meet the recognition criteria; otherwise they are expensed. Depreciation continues
during major repair intervals.
22. Construction in progress
√适用□不适用
1. Construction in progress while satisfying economic benefits is likely to flow in and costs can be
reliably measured are recognised. Construction in progress is measured at the actual cost incurred
before the construction of the asset reaches its intended status of uses.
2. When Construction in progress reaches the intended status of uses it will be transferred to
fixed assets according to the actual cost of the project. If it has reached the expected usable status but
has not yet completed the settlement of completion it will first be transferred to fixed assets at the
estimated value. After the completion of the final settlement the original provisional valuation will be
adjusted according to the actual cost but the original depreciation will not be adjusted.
3. The specific criteria and timing for the transfer of construction in progress to fixed assets are as
follows:
Item Criteria and time point for conversion to fixed assets
Property and (1) The main construction project and supporting projects have been substantially
buildings completed; (2) The construction project has met the predetermined design
requirements and has been inspected designed constructed and supervised by
various units; (3) If the construction project has reached the predetermined usable
state but has not yet undergone completion settlement it will be transferred to
fixed assets based on the estimated value of the actual construction cost from the
date of reaching the predetermined usable state.
(1) The relevant equipment and other supporting facilities have been installed; (2)
Special The equipment that needs to be commissioned or trial-produced can maintain
equipment normal and stable operation for a period of time after commissioning; (3) Theproduction equipment can stably produce qualified products; (4) The equipment
has been accepted by the relevant departments of asset management.
4. If the company sells the products or by-products produced before the construction project
reaches the expected usable state (hereinafter referred to as trial operation sales) the income and
costs related to the trial operation sales shall be accounted for separately in accordance with the
provisions of "Enterprise Accounting Standard No. 14 - Revenue" and "Enterprise Accounting Standard
No. 1 - Inventories" and included in the current period's profit and loss. Before the relevant products or
by-products produced by the trial operation are sold to the outside they shall be recognized as
inventories in accordance with the provisions of "Enterprise Accounting Standard No. 1 - Inventories"
and recognized as related assets in accordance with the relevant asset recognition conditions in other
relevant enterprise accounting standards.
23. Borrowing costs
√适用□不适用
Borrowing costs including interest on borrowings amortization of discounts or premiums other
relevant expenses and exchange differences due to foreign currency borrowings.
1. Principle of borrowing costs capitalization
Borrowing costs incurred by the Company which can be directly attributed to the acquisition
construction or production of assets that meet the capitalization conditions are capitalized and
included in the cost of related assets. Other Borrowing costs are recognized as expenses based on the
amount incurred when they occur and are included in profit or loss for the current period.
2. Capitalization period of borrowing costs
183 / 3522024 Annual Report 184
(1) When the following conditions are met at the same time capitalization begins: 1) Asset
expenditure has occurred; 2) Borrowing costs have occurred; 3) The purchase construction or
production activities necessary to make the asset reach the intended use or sale state have begun.
(2) Suspension of capitalization: If an asset that meets the conditions of capitalization is
abnormally interrupted during the acquisition construction or production process and the
interruption lasts for more than 3 months the capitalization of Borrowing costs is suspended;
Borrowing costs incurred during the interruption are recognized as current expenses until the
purchase or construction of assets or production activities restart. If the interruption is the necessary
procedure for the acquisition or construction or production of assets that meet the capitalization
conditions to reach the intended status of uses or status of sale borrowing costs will continue to be
capitalized.
(3) Cessation of capitalization: Borrowing costs cease to be capitalized when the assets
purchased or constructed or produced that meet the capitalization conditions reach the intended use
or sale. When part of the assets in the acquisition construction or production of capitalized assets are
completed separately and can be used separately the capitalization of borrowing costs of the partial
assets will be ceased. If each part of the purchased or constructed asset is completed separately but it
cannot be used until it is completed or sold externally the capitalization of borrowing costs shall be
ceased when the asset is completed.
3. Borrowing costs capitalization rate and calculation method of capitalization amount
If specific loans are borrowed for the purchase or construction or production of assets that meet
the capitalization conditions the interest expenses actually incurred in the current period of the
specific loans (including the amortization of discounts or premiums determined in accordance with the
effective interest rate method) minus the amount of interest income obtained from the bank or the
investment income obtained by making a temporary investment by the unused borrowing loans is the
amount of interest that should be capitalized; if the general borrowings are occupied for the purchase
or construction or production of assets that meet the capitalization conditions the weighted average
amount of asset expenditures on the amount of cumulative asset expenditure exceeding the specific
loans is multiplied by the capitalization rate (weighted average interest rate) of the general borrowing
to calculate and determine the amount of interest that should be capitalized for the general borrowing.During the capitalization period the amount of interest capitalized in each accounting period shall not
exceed the amount of interest actually incurred by the relevant borrowings in the current period. The
exchange differences on the principal and interest of foreign currency special borrowings shall be
capitalized during the capitalization period. Other relevant expenses incurred by special borrowings
occur before the assets eligible for capitalization purchased or constructed or produced reach the
intended status of use or sale they are capitalized; Other relevant expenses incurred in general
borrowings are included in profit or loss for the current period when incurred. If there is a discount or
premium on the loans the amount of discount or premium that should be amortized in each
accounting period is determined according to the effective interest rate method and the amount of
interest in each period is adjusted.
24. Biological assets
□适用√不适用
25. Oil and gas assets
□适用√不适用
26. Intangible assets
(1). Measurement useful life impairment test
√适用□不适用
1. Initial measurement of intangible assets
184 / 3522024 Annual Report 185
Intangible assets are initially measured at cost. The cost of externally purchased intangible assets
includes the purchase price related taxes and other expenses directly attributable to the asset for its
intended use. If the payment for the purchase of intangible assets is delayed beyond the normal credit
conditions and is essentially of a financing nature the cost of the intangible assets is determined on the
basis of the present value of the purchase price. Debt restructuring acquires the intangible assets used
by the debtor to pay off debts and the book value is determined on the basis of the fair value of the
waived claims and other costs that can be directly attributed to the tax and other costs incurred in
bringing the asset to its intended use. Intangible assets obtained from debtor to pay off debts under
debt restructuring its book value is determined on the basis of the fair value of the waived claims and
other costs that can be directly attributed to the tax and other costs incurred in bringing the asset to its
intended use. Under the presumption that the exchange of non-monetary assets has commercial
substance and the fair value of the assets exchanged in or out can be reliably measured the intangible
assets exchanged in the swap of non-monetary assets are stated at fair value of the assets swapped
and related taxes as the cost of swapping intangible assets unless there is strong evidence that the fair
value of the swapped assets is more reliable; for non-monetary asset exchanges that do not meet the
above presumption the book value of the swapped assets and related taxes payable are used as the
cost of intangible assets and there is no recognition of any profit or loss.Expenses related to intangible assets are included in the cost of intangible assets if the related
economic benefits are likely to flow into the Company and the costs can be reliably measured.Expenditures for other items other than these are included in profit or loss for the current period when
they occur.The acquired land use rights are usually accounted for as intangible assets. For self-development
and construction of buildings and other buildings related land use rights expenditures and building
construction costs are accounted for as intangible assets and fixed assets respectively. In the case of
purchased properties and buildings the relevant price will be allocated between the land use rights
and the buildings. If it is difficult to allocate them reasonably all of them will be treated as fixed assets.
2. Intangible asset useful life the basis for its determination estimation amortization method or
review procedures
According to the contract rights or other legal rights industry history experience and other
relevant experts to determine a combination of factors reasonably determine the intangible asset can
bring economic benefits for the Company as intangible assets with limited useful life; not Where the
intangible assets are reasonably determined to bring economic benefits to the Company they are
regarded as intangible assets with uncertain service life.For intangible assets with a finite useful life the following factors are usually considered when
estimating the useful life: (1) the usual life cycle of the products produced using the asset and the
information available on the service life of similar assets; (2) technology process etc. The current
situation of the country and the estimation of the future development trend; (3) the market demand
for the products produced by the asset or the provision of labor services; (4) the expected actions of
current or potential competitors; (5) the maintenance of the asset Expected maintenance expenditures
that bring economic benefits and the Company's ability to pay for related expenditures; (6) Relevant
legal regulations or similar restrictions on the asset's control period such as concession periods lease
periods etc . ; (7) There is correlation of the useful life of other assets.The estimated useful life of intangible assets with finite useful life:
Item Basis of estimated useful life Period (years)
Software Expected benefit period 5
Patent Expected benefit period 10
Land use rights Registered useful life of landuse rights 50
Intangible assets with a finite useful life are amortized systematically and rationally within the
useful life according to the expected realization method of the economic benefits related to the
intangible asset. If the expected realization method cannot be reliably determined the straight-line
185 / 3522024 Annual Report 186
method is used. Intangible assets with uncertain useful life are not amortized but the useful life of the
intangible assets is reviewed every year and an impairment test is conducted.At the end of each year the Company reviews the useful life and amortization method of
intangible assets with a finite useful life. If it is different from the previous estimate the original
estimate is adjusted and the accounting estimate is changed; it is estimated that an intangible asset
can no longer be given if the enterprise brings future economic benefits the book value of this
intangible asset will be transferred to profit or loss for the current period.
(2). Accounting policy for internal research and development expenditures
√适用□不适用
The expenditures of internal research and development projects are divided into expenditures in
the research phase and expenditures in the development phase. Criteria for dividing research stage
and development stage: the planned investigation stage for acquiring new technologies and
knowledge should be determined as the research stage which has the characteristics of planning and
exploration; The application of research results or other knowledge to a plan or design before
commercial production or use to produce new or substantially improved materials devices products
and other stages should be determined as the development stage which is targeted and likely to
produce results characteristics.Expenditures for the research phase of internal research and development projects are included in
profit or loss for the current period when they occur. Expenses during the development phase of an
internal research and development project that meet the following conditions are recognized as
intangible assets: (1) it is technically feasible to complete the intangible asset so that it can be used
or sold; (2) it is Intention to use or sell; (3) The way in which intangible assets generate economic
benefits including the ability to prove that the products produced using the intangible assets exist in
the market or the intangible assets themselves exist in the market and the intangible assets will be
used internally can prove their usefulness; (4) sufficient technical financial resources and other
resources support to complete the development of the intangible asset and the ability to use or sell the
intangible asset; (5) The expenditure attributable to the development stage of the intangible asset can
be reliably measured. If the above conditions are not met it will be included in profit or loss for the
current period when it occurs; if there is no way to distinguish between research phase expenditure
and development phase expenditure all research and development expenditure incurred will be
included in profit or loss for the current period.If the company sells products or by-products produced during the research and development
process (hereinafter referred to as trial operation sales) it shall conduct accounting treatment for therelated income and costs of trial operation sales in accordance with the provisions of “AccountingStandards for Business Enterprises No. 14 – Revenue” and “Accounting Standards for BusinessEnterprises No. 1 – Inventory” and include them in the current profit or loss. Before selling the
products or by-products produced during the trial operation they shall be recognized as inventory in
accordance with the provisions of “Accounting Standards for Business Enterprises No. 1 – Inventory”
and they shall be recognized as related assets in accordance with the asset recognition conditions in
other relevant accounting standards for business enterprises.
27. Long-term asset impairment
√适用□不适用
Long-term equity investments investment property and productive biological assets measured
using the cost model fixed assets construction in progress oil and gas assets right-of-use assets
intangible assets goodwill and other long-term assets are subject to impairment if there are indication
of the following:
1. The market price of assets has fallen sharply in the current period and the decline is
significantly higher than the expected decline due to the passage of time or normal use;
186 / 3522024 Annual Report 187
2. The economic technical or legal environment in which the enterprise operates and the market
in which the assets are located will undergo major changes in the current period or in the near future
thereby adversely affecting the enterprise;
3. The market interest rate or other market investment return rate has increased in the current
period which affects the discount rate of the enterprise's calculation of the present value of the
expected future cash flow resulting in a substantial reduction in the asset's recoverable amount;
4. There is evidence that the asset has become obsolete or its physical has been damaged;
5. Assets have been or will be idle terminated or planned to be disposed of in advance;
6. Evidence from internal reports of the Company indicates that the economic performance of the
asset has been or will be lower than expected such as the net cash flow created by the asset or the
realized operating profit (or loss) is far below (or higher than) the expected amount etc . ;
7. Other indications that assets may have been impaired.
If there is any indication of impairment of the above-mentioned long-term assets on the balance
sheet date an impairment test shall be conducted. If the result of the impairment test indicates that
the recoverable amount of the asset is lower than its book value the impairment provision shall be
made according to the difference and included in the impairment loss. The recoverable amount is the
higher of the net value of the asset's fair value minus disposal costs and the present value of the asset's
expected future cash flow. The method for determining the fair value is detailed in this note
“Significant Accounting Policies and Accounting Estimates — Fair Value”; the disposal expenses include
legal expenses related to the disposal of assets related taxes handling fees and direct expenses
incurred to bring the asset to a saleable status; the expected future cash flow of the asset is
determined according to the present value of expected future cash flow generated during the
continuous use of the asset and at the time of final disposal and an appropriate discount rate is
selected to determine the discounted amount.The asset impairment provision is calculated and determined on the basis of individual assets. If it
is difficult to estimate the recoverable amount of an individual asset the asset group to which the
asset group belongs determines the recoverable amount of the asset group. An asset group is the
smallest asset portfolio that can independently generate cash inflows.The goodwill presented separately in the financial statements will be allocated to the asset group
or combination of asset groups that is expected to benefit from the synergy effect of the business
combination during the impairment test. If the test results indicate that the recoverable amount of the
asset group or combination of asset groups containing the allocated goodwill is lower than its book
value the corresponding impairment loss is recognized. The amount of impairment loss is offset
against the book value of goodwill allocated to the asset group or combination of asset groups and
then proportionally based on the proportion of the book value of other assets in the asset group or
combination of asset groups other than goodwill.Goodwill and intangible assets with indefinite useful life are tested for impairment at least at the
end of each year.Once assets impairment loss is recognised it will not be reversed in the future period.
28. Long-term deferred expenses
√适用□不适用
Long-term deferred expenses are accounted for based on actual expenditures and amortized
evenly over the benefit period or the prescribed period. If the long-term deferred expense item cannot
benefit the future accounting period all the amortized value of the item that has not been amortized
shall be transferred to profit or loss for the current period of which:
Improvement expenditures incurred on leased fixed assets shall be amortized evenly over the
remaining useful life of the leased assets if it can be reasonably determined that the ownership of the
leased assets will be obtained at the expiration of the lease term. If it cannot be reasonably determined
that the ownership of the leased asset can be obtained at the expiration of the lease term it shall be
amortized equally over the shorter of the remaining lease term and the remaining useful life of the
leased asset.
187 / 3522024 Annual Report 188
The decoration costs incurred by the leased fixed assets if it can be reasonably determined that
the ownership of the leased assets will be obtained at the expiration of the lease term shall be
amortized equally between the interval between two decorations and the shorter period of the
remaining useful life of the leased assets. If it cannot be reasonably determined that the ownership of
the leased asset can be obtained at the expiration of the lease term the leased asset shall be
amortized equally over the shorter of the interval between two decorations the remaining lease term
and the remaining useful life of the leased asset.
29. Contract liabilities
√适用□不适用
Contract liabilities is the Company's obligation to transfer goods to customers for the
consideration that has been received or receivable from customers. The Company presented the net
amount of contract assets offsetting with contract liabilities when they are aroused in the same
contract.
30. Employee compensation
(1). Accounting treatment of short-term employee benefits
√适用□不适用
In the accounting period in which employees have rendered services the Company recognized the
employee wages bonus social security contributions according to regulations such as medical
insurance work injury insurance and maternity insurance as well as housing funds as liability and
charged to profit or loss for the current period or cost of relevant assets. If employee benefits are
non-monetary benefits if they can be measured reliably they shall be measured at fair value. If the
liability is not expected to be settled wholly in twelve months after the balance sheet date and the
amount is significant the liability is measured at the discounted amount.
(2). Accounting treatment of post-employment benefits
√适用□不适用
Post-employment benefit plan includes defined contribution plans and defined benefit plans.Defined contribution plans are post-employment benefit plans under which a corporate pays fixed
contributions into an escrow fund and will have no further obligation. Defined benefit plans are
post-employment benefit plans other than defined contribution plans.
(1) Defined contribution plans
The Company pays basic pension insurance and unemployment insurance for employees in
accordance with the relevant regulations of the current government. In the accounting periods which
employees rendered services the amount of defined contribution plan is recognized as liability and
charged to profit or loss for the current period or cost of relevant assets.
(3). Accounting treatment of termination benefits
√适用□不适用
Termination benefits is recognized on the earlier of either the Company cannot unilaterally
withdraw the termination benefits provided by the labor relationship cancellation plan or the
redundancy proposal and the Company recognises the costs or expenses related to the restructuring
related to the payment of the termination benefits. Termination benefits expenses are included in
profit or loss for the current period. However if the termination benefits are not expected to be fully
paid within twelve months after the end of this reporting period it is treated as other long-term
employee benefits.Employee internal retirement plans are handled on the same principle as the above dismissal
benefits. The Company will include the salary and social insurance contribution of early retired
188 / 3522024 Annual Report 189
personnel from the date when the employee ceases to provide services to the normal retirement date
and shall be included in profit or loss for the current period (termination benefits) when the conditions
for recognising the estimated liabilities are met. Financial compensation after the official retirement
date (such as the normal pension pension) will be treated as post-employment benefits.
(4). Accounting treatment of other long-term employee benefits
√适用□不适用
Other long-term employee benefits provided by the Company to the employees satisfied the
conditions for classifying as a defined contributions plan; those benefits are accounted for in
accordance with the above requirements relating to defined contribution plan but the movement of
net liabilities or assets in re-measurement of defined benefit plan is recorded in profit or loss for the
current period or cost of relevant assets.
31. Provision of liabilities
√适用□不适用
A provision is recognized as a liability when an obligation related to a contingency satisfied all of
the following conditions: (1) The obligation is a present obligation of the Company; (2) It is probable
that an outflow of economic benefits will be required to settle the obligation; (3) The amount of the
obligation can be measured reliably.Provisions are initially measured at the best estimate of the payment to settle the associated
obligations and consider the relevant risk uncertainty and time value of money. If the impact of time
value of money is significant the best estimate is determined as its present value of future cash
outflow. The Company reviews the carrying amount of provisions at the balance sheet date and adjusts
the carrying amount to reflect the best estimate.The best estimates are divided into the following situations: If the required expenditure exists in
a continuous range (or interval) and the probability of various results in the range is the same the best
estimate is based on the middle value of the range: namely The average of the lower limit amount is
determined. The required expenditure does not exist in a continuous range (or interval) or although
there is a continuous range but the possibility of various results in this range is not the same if
contingencies involve a single item the best estimate is based on the amount most likely to occur; if
contingencies involve multiple items the best estimate is calculated and determined based on various
possible results and related probabilities.If all or part of the expenses required to pay off the provisions of the Company are expected to be
compensated by a third party when the compensation amount is basically determined to be received
it is separately recognized as an asset and the recognized compensation amount does not exceed the
carrying amount of the provisions.Carrying amount of the provisions are reviewed on each balance sheet date. If there is solid
evidence that the carrying amount cannot reflect the current best estimate the carrying amount shall
be adjusted according to the current best estimate.
32. Share-based payments
√适用□不适用
1. Category of share-based payment
The Company's share-based payment is a transaction that grants equity instruments or assumes
liabilities determined on the basis of equity instruments in order to obtain services provided by
employees (or other parties). Includes Share-based payment settled with equity and share-based
payment settled with cash.
2. Determination method of fair value of equity instruments
(1) If there is an active market it shall be determined according to the quoted price the active
market; (2) If there is no active market it shall be determined by using valuation techniques including
reference to the prices used in recent market transactions conducted by parties who are familiar with
189 / 3522024 Annual Report 190
the situation and voluntarily trade reference to the current fair value discounted cash flow method
and option pricing model of other financial instruments that are substantially the same.
3. Basis in determination of best estimate of exercisable equity instruments
On each balance sheet date during the vesting period the Company makes the best estimate
based on the latest information on the number of employees with exercisable rights and other
follow-up information and corrects the number of equity instruments expected to exercise. On the
exercise date the number of equity instruments expected to be exercised should be consistent with
the actual exercisable amount.
4. Accounting treatment of share-based payment
(1) Share-based payment settled by equity
If the equity-settled share-based payment is exchanged for employees to provide services and the
right is available immediately after the grant the relevant cost or expense will be included in the fair
value of equity instruments on the grant date and the capital reserve will be adjusted accordingly. If
the exercise right is available only after completing the service within the vesting period or meeting the
prescribed performance conditions on each balance sheet date during the vesting period based on
the best estimate of the number of available rights Equity instruments and the fair value of the equity
instruments on its grant date the services obtained in the current period are included in the relevant
costs or expenses and the capital reserve is adjusted accordingly. After the exercisable date no
adjustment will be made to the recognised costs or expenses and the total owner’s equity.For the equity-settled Share-based payment is exchanged for the services of the other party if the
fair value of the services of the other party can be reliably measured it is measured according to the
fair value of the service of the other party. If the fair value of the other party’s services cannot be
measured reliably but the equity value of equity instruments can be measured reliably it is measured
in accordance with the fair value of equity instruments on the date of service acquisition included in
the relevant costs or expenses and the owners ‘equity is increased accordingly.
(2) Share-based payment settled in cash
Share-based payment settled in cash in exchange for employee services and the right to exercise
immediately after the grant the Company’s fair value of the liabilities assumed are included in the
relevant costs or expenses on the grant date and the liabilities are increased accordingly. Share-based
payment settled in cash that can be exchanged for employee services after completing the services
within the waiting period or meeting the prescribed performance conditions based on the best
estimate of the right to exercise on each balance sheet date during the vesting period and the fair
value of the Company’s liabilities the services obtained in the current period are included in the
relevant costs or expenses and corresponding liabilities. On each balance sheet date and settlement
date before the settlement of the relevant liabilities the fair value of the liabilities is remeasured and
the changes are included in profit or loss for the current period.
(3) Modify and terminate share-based payment plan
If the modification increases the fair value of equity instruments granted the Company will
recognise the increase in the cost of services obtained in accordance with the increase in fair value of
equity instruments. If the modification increases the number of equity instruments awarded the
Company will recognize the increase in the fair value of equity instruments accordingly as an increase
in access to services. If the Company revises the conditions of exercise rights in a manner beneficial to
employees the Company considers the revised conditions of exercise rights when dealing with the
conditions of exercise rights.If the modification reduces the fair value of the equity instruments granted the Company
continues to recognize the services based on amount of fair value of the equity instruments on the
grant date regardless of the decrease in the fair value of the equity instruments. If the modification
reduces the number of granted equity instruments the Company treats the reduction as a cancellation
of the granted equity instruments. If the vesting conditions are modified in a way that is unfavorable to
the employees the modified vesting conditions shall not be considered when dealing with the vesting.If the share-based payment settled by equity is cancelled it will be treated as an accelerated
exercise on the cancellation date and the unrecognized amount will be recognised immediately
(Amount that should be recognised in the remaining vesting period is immediately included in profit or
loss for the current period and capital reserve is also recognised). Employees or other parties can
190 / 3522024 Annual Report 191
choose to meet the non-feasible rights conditions but not met within the waiting period as a
cancellation of equity settlement of share-based payment. However if a new Equity instrument is
awarded and the equity instruments granted on the grant date of the new equity instruments are
deemed to replace the equity instruments that were cancelled then the authorized replacement
equity instruments are processed in the same way as the modification of terms and conditions of the
original equity instruments.
5 ． Involving share-based payment transactions between companies within the scope of
consolidation of the Company between the Company and the actual controlling party or other
shareholders of the Company or between the Company and other companies in the group to which
the Company belongs it is accounted in accordance with the relevant provisions of Article 7 of
intra-group share-based payment of "Interpretation No. 4 of Accounting Standards for Business
Enterprises".
33. Preferred shares perpetual bonds and other financial instruments
□适用√不适用
34. Revenue
(1). Accounting policies adopted for revenue recognition and measurement
√适用□不适用
1. General principles of revenue recognition
Under the new revenue standard the Company determine the timing of revenue recognition on
the basis of transfer of control. The Company recognises revenue when it satisfies a performance
obligation in the contract i.e. when the customer obtains control of the relevant goods or services.If one of the following conditions is fulfilled the Company performs its performance obligation
within a certain period; otherwise it performs its performance obligation at a point of time: (1) when
the customer simultaneously receives and consumes the benefits provided by the Company when the
Company performs its obligations under the contract; (2) when the customer is able to control the
goods in progress in the course of performance by the Company under the contract; (3) when the
goods produced by the Company under the contract are irreplaceable and the Company has the right
to receive payment for performance completed to date during the whole contract term.For performance obligations performed within a certain period the Company recognises revenue
by measuring the progress towards complete of that performance obligation within that certain period.When the progress of performance cannot be reasonably determined if the costs incurred by the
Company are expected to be compensated the revenue shall be recognised at the amount of costs
incurred until the progress of performance can be reasonably determined.For performance obligation performed at a point of time the Company recognises revenue at the
point of time at which the customer obtains control of relevant goods or services. To determine
whether a customer has obtained control of goods or services the Company considers the following
indications: (1) the Company has the current right to receive payment for the goods which is when
the customer has the current payment obligations for the goods; (2) the Company has transferred the
legal title of the goods to the customer which is when the client possesses the legal title of the goods;
(3) the Company has transferred the physical possession of goods to the customer which is when the
customer obtains physical possession of the goods; (4) the Company has transferred all of the
substantial risks and rewards of ownership of the goods to the customer which is when the customer
obtain all of the substantial risks and rewards of ownership of the goods to the customer; (5) the
customer has accepted the goods; (6) other information indicates that the customer has obtained
control of the goods.When a contract contains two or more performance obligations the Company will allocate the
transaction price to each individual performance obligation in accordance with the relative proportion
of the stand-alone selling price of the goods promised by each individual performance obligation on
the commencement date of the contract. Revenue is recognised on the transaction price allocated to
191 / 3522024 Annual Report 192
each individual performance obligation. The transaction price is the amount of consideration that the
Company expects to be entitled to receive due to the transfer of goods to customers. The amount
collected by the Company on behalf of a third party and the amount that the Company expects to
return to the customer are accounted for as a liability and not included in the transaction price. For
contracts that contain variable consideration the Company estimates the amount of consideration to
which it will be entitled using either the expected value method or the most likely amount. The
estimated amount of variable consideration is included in the transaction price only to the extent that
it is highly probable that such an inclusion will not result in a significant revenue reversal in the future
when the uncertainty associated with the variable consideration is subsequently resolved. For
contracts that contain significant financing components the Company determines the transaction price
based on the amount payable under the assumption that the customer pays that amount payable in
cash when the control of goods or services is transferred to the customer. The difference between the
transaction price and the contract consideration shall be amortised within the contract period using
effective interest rate. For contracts where the period between payment and transfer of the associated
goods or services is less than one year the Group applies the practical expedient of not adjusting the
transaction price for any significant financing component.
2. Specific revenue recognition principle
Based on actual situation the Company recognizes revenue when the following conditions are
met:
(1) Sales of product: Domestic sales revenue is recognised when the control of the product has
been transferred to the purchaser the continued management and control of the product is no longer
implemented the payment has been recovered or the evidence for payment has been obtained and
the relevant economic benefits are likely to flow in and the cost of the product can be reliably
measured. Export sale revenue is recognised on the export date shown on the export declaration of the
goods after the goods are shipped according to the customer's requirements the payment has been
recovered or the receipt of the payment has been obtained and the relevant economic benefits are
likely to flow in the cost of the product can be reliably measured.
(2) Futures brokerage business: The net transaction fee charged by the Company from the
customers (deducting the transaction fee payable by the Company to exchange company) is recognized
as the net fee income when the daily payment is settled with the customer.
(2). Differences in accounting policies for revenue recognition due to the adoption of different
business models for similar businesses
□适用√不适用
35. Contract costs
□适用√不适用
36. Government grants
√适用□不适用
1. Category of government grants
Government grants refer to the Company's obtain of monetary or non-monetary assets from the
government without consideration. It is divided into government grants related to assets and
government grants related to income.Government grants related to assets refer to government grants acquired by the Company and
used to purchase or construct or form long-term assets including financial grants for the purchase of
fixed assets or intangible assets and financial discounts for dedicated loans for fixed assets etc . ;
Government grants related to income refer to government grants other than government grants
related to assets. Government grants should be distinguished between that related to assets and
192 / 3522024 Annual Report 193
related to income and apply different accounting treatment. If it is difficult to distinguish the overall
classification is classified as government grants related to income
The specific standards adopted by the Company in the classification of government grants are:
(1) The grant objects specified in the Government grants document are used to purchase or
construct or form long-term assets or the expenditures of the subsidies are mainly used to purchase or
construct or form long-term assets they are classified as government grants related to assets.
(2) The government grants obtained according to the government documents that are all or
mainly used to compensate the expenses or losses in the future period or the government grants that
have occurred and are classified as government grants related to income.
(3) If the government document does not clearly specify the target of the grant the Government
grants will be divided into Government grants of Related to assets or Government grants of Related to
income in the following ways: 1) Government documents specify the specific project targeted by the
grant the expenditure amount is divided by relative ratio of that forming the asset and the
expenditure amount included in the expense according to the budget of this particular project. The
ratio needs to be reviewed on each balance sheet date and changed if necessary.2) Government
documents only use general expressions and do not indicate specific items it is regarded as
government grants related to income.
2. Timing of recognition of government grants
The Company usually recognises and measures the government grants according to the actual
amount received when they are actually received. However for the end of the period there is solid
evidence that it can meet the relevant conditions stipulated by the financial support policy. It is
expected that the financial support funds can be received and it is measured according to the Amount
receivable. Government grants measured according to Amount receivable should also meet the
following conditions:
(1) It is based on the financial support item officially released by the local financial department
and proactively disclosed in accordance with the “Government Information Disclosure Regulations”
and its financial fund administrative methods and its administrative methods should be inclusive (any
enterprise that meets the prescribed conditions can apply) not specifically for specific enterprises;
(2) The Amount of the subsidy receivable has been confirmed by the authority government
department or it can be reasonably calculated according to the relevant regulations of the officially
released financial fund management method and it is expected that there will be no significant
uncertainty in its amount;
(3) The relevant grant approval has clearly promised the payment period and the payment is
guaranteed by the corresponding financial budget so it can be reasonably guaranteed that it can be
received within the specified period;
(4) According to the specific situation of the Company and the subsidy other relevant conditions
(if any) that should be met.
3. Accounting treatment of government grants
Government grants are monetary assets measured by the amount received or receivable;
non-monetary assets measured by the fair value; if the fair value of non-monetary assets cannot be
reliably obtained measured by the nominal amount. Government grants measured in nominal amount
are directly included in profit or loss for the current period.The Company adopts the gross method for Government grants the specific accounting treatment
is as follows:
Government grants related to assets are recognized as deferred income and are included in profit
or loss for the current period in a reasonable and systematic way within the useful life of the relevant
assets. When related assets are sold transferred scrapped or damaged before the end of the useful
life the relevant deferred income balance is transferred to the profit or loss of the asset disposal
period.Government grants related to income which are used to compensate the related cost or loss of
the Company in the future period are recognized as deferred income and are included in profit or loss
for the current period during the period when the related cost or loss is recognized. The compensation
for the related costs or losses incurred by the enterprise is directly included in profit or loss for the
current period.
193 / 3522024 Annual Report 194
The policy discount loans obtained by the Company are divided into the following two situations
and are separately accounted for:
(1) if the government makes the payment of subsidy to the bank offering the loan the actual
amount of money received by the loan is recorded as the book amount and the borrowing costs are
calculated according to the loan principle and the preferential interest rate of the policy.
(2) If the government makes the payment of subsidy directly to the Company the interest subsidy
is reducing the borrowing costs.If the recoginsed government grants need to be returned the returned will be accounted in the
current period for in the following situations:
(1) that initially deducted the carrying amount of the asset is recognized by increasing the
carrying amount of the asset;
(2) if there exists of the related deferred income balance then the deferred income balance is
reduced by the amount repayable any excess is charged to profit or loss for the current period.
(3) In other cases it is directly included in profit or loss for the current period.
The distinguishing principles of government grants included in different profit or loss items are:
Government grants related to the daily activities of the Company included in other income or
offsetting related costs according to the economic business substance; Government grants not related
to the daily activities of the Company included in non-operating income and expenses.
37. Deferred tax assets/deferred tax liabilities
√适用□不适用
1. Recognition and measurement of deferred tax assets and deferred tax liabilities
The Company uses the balance sheet liability method to recognize deferred income tax based on
the temporary difference between the carrying amount of assets liabilities and the balance sheet date
and the tax base. The Company's current income tax and deferred income tax are included in profit or
loss for the current period as income tax expenses or credit but excluding income tax arising from: (1)
business combination; (2) transactions or matter recognised directly in owners' equity; (3) according to
the "Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments" and
other regulations the dividend payment of financial instruments classified as equity instruments can
be deducted before corporate income tax according to tax policies and the distributed profits come
from transactions or matters previously recognized in owners’ equity.The Company recognizes a deferred tax asset for the carry forward of deductible temporary
differences deductible losses and tax credits to subsequent periods to the extent that it is probable
that future taxable profits will be available against which the deductible temporary differences
deductible losses and tax credits can be utilized except for those incurred in the following transactions:
(1) This transaction is not a business combination and neither affects accounting profits nor
affects taxable income (or deductible losses) when it occurs. Additionally the initially recognized assets
and liabilities do not generate equal taxable temporary differences and deductible temporary
differences;
(2) The deductible temporary differences associated with investments in subsidiaries associates
and joint ventures the corresponding deferred tax asset is recognized when both of the following
conditions are satisfied: it is probable that the temporary difference will reverse in the foreseeable
future and it is probable that taxable profits will be available in the future against which the temporary
difference can be utilized.All the taxable temporary differences are recognized as deferred tax liabilities except for those
incurred in the following transactions:
(1) Initial recognition of goodwill or initial recognition of assets or liabilities arising from
transactions with the following characteristics: the transaction is not a business combination and
neither affects accounting profits nor affects taxable income (or deductible losses) at the time of the
transaction and the initially recognized assets and liabilities do not generate equal taxable temporary
differences and deductible temporary differences;
194 / 3522024 Annual Report 195
(2) The taxable temporary differences associated with investments in subsidiaries associates and
joint ventures and the Company is able to control the timing of the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.The difference between the carrying amount of assets and liabilities and their tax base (If the
items that have not been recognized as assets and liabilities can be determined in accordance with the
provisions of the tax law the tax base the difference between the tax base and the book amount) is
calculate and recognized deferred tax assets or deferred tax liabilities according to the applicable tax
rate during the period when the assets are expected to be recovered or the liabilities are paid off.For individual transactions that are not business combinations and do not affect accounting profits
or taxable income (or deductible losses) at the time of transaction and the initial recognition of assets
and liabilities results in equal taxable temporary differences and deductible temporary differences the
company recognizes the corresponding deferred income tax liabilities and deferred income tax assets
at the time of transaction for the taxable temporary differences and deductible temporary differences
arising from the initial recognition of assets and liabilities in the transaction.Deferred tax assets recognsied are limited to the amount of taxable income that is likely to be
used to offset the deductible temporary differences. On the balance sheet date if there is solid
evidence that it is likely to obtain sufficient taxable income in the future period to offset the deductible
temporary difference the deferred tax assets that have not been recognized in the previous
accounting period are recognized. The carrying amount of deferred tax assets is reviewed regularly. If it
is likely that sufficient taxable income cannot be obtained in the future to offset the benefits of
deferred tax assets the carrying amount of deferred tax assets will be written down. When it is likely
to obtain sufficient taxable income the amount written down will be reversed.
2. When the Company has the legal right to settle on a net basis and intends to settle on a net
basis or acquire assets and settle liabilities simultaneously the Company's current income tax assets
and current income tax liabilities are presented in net amounts after offset.When the Company have the legal right to settle the current income tax assets and current
income tax liabilities in net and the deferred tax assets and deferred tax liabilities are related to the
income tax levied by the same tax collection department on the same taxpayer or different taxpayers
but in each future period of significant deferred tax assets and liabilities reversal the taxpayer involved
intends to settle the current income tax assets and liabilities in net amount or obtain assets and settle
liabilities at the same time and deferred tax liabilities are presented in net amount after offset.
38. Leases
√适用□不适用
Leasing refers to a contract in which the lessor transfers the right to use an asset to the lessee for
a certain period of time in exchange for consideration.On the contract commencement date the Company assesses whether the contract is a lease or
contains a lease. If one party in the contract transfers the right to control the use of one or more
identified assets for a certain period of time in exchange for consideration then the contract is a lease
or contains a lease.If the contract includes multiple separate leases the lessee and lessor will split the contract and
perform accounting for each separate lease separately. If the contract includes both leases and
non-leases the lessee and lessor will split the leases and non-leases.
1. Accounting treatment for leases as a lessee
(1) Right-of-use assets
At the commencement date of lease term the Company recognizes right-of-use assets for leases
(excluding short-term leases and leases of low-value assets). Right-of-use assets are measured initially
at cost. Such cost comprises: the amount of the initial measurement of lease liability; lease payments
made at or before the inception of the lease less any lease incentives already received (if there is a
lease incentive); initial direct costs incurred by the Company; the costs of the Company expected to be
incurred for dismantling and removing the leased asset restoring the site on which the leased asset is
located or restoring it to the condition as agreed in the terms of the lease.
195 / 3522024 Annual Report 196
The Company accrues depreciation for the right-of-use assets on straight-line method. If there is
reasonable certainty that the Company will obtain the ownership of a leased asset at the end of the
lease term the Company depreciates the right-of-use asset from the commencement date to the end
of the useful life of the underlying asset; otherwise the Company depreciates the leased asset from
the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end
of the lease term.
(2) Lease liabilities
At the commencement date of lease term the Company recognizes lease liabilities for leases
(excluding short-term leases and leases of low-value assets). Lease liabilities are initially measured
based on the present value of outstanding lease payment. Lease payment include: fixed payments
(including in-substance fixed payments) less any lease incentives (if there is a lease incentive); variable
lease payment that are based on an index or a rate; amounts expected to be payable under the
guaranteed residual value provided by the Company; the exercise price of a purchase option if the
Company is reasonably certain to exercise that option; payments of penalties for terminating the lease
option if the lease term reflects that the Company will exercise that option. The Company adopts the
interest rate implicit in the lease as the discount rate. If that rate cannot be determined reasonably
the Company’s incremental borrowing rate is used.The Company shall calculate the interest expenses of lease liabilities over the lease term at the
fixed periodic interest rate and include it into profit or loss in the period or cost of relevant assets.Variable lease payments not included in the measurement of lease liabilities are charged to profit or
loss in the period or cost of relevant assets in which they actually arise.After the commencement date of lease term if the following circumstances occur the Company
re-measures the lease liability in accordance with the lease payments after modification: when the
assessment results of the purchase extension or termination option or the actual exercise condition
changes or the actual exercise of the lease renewal option or the lease termination option is
inconsistent with the original assessment result; Changes in the expected payable amount based on
guaranteed residual value; Changes in the index or ratio used to determine lease payments. For the
lease modification that cause the lease liabilities to be remeasured the Company adjusts the carrying
value of the right-of-use assets accordingly. If the carrying value of the right-of-use asset has been
reduced to zero but the lease liability still needs to be further reduced the Company will include the
remaining amount in the profit or loss for the current period.As a lessee the basis for determining and accounting for simplified processing of short-term leases
and low-value asset leases
√适用□不适用
The right-of-use asset and lease liability are not recognized by the Company for short-term leases
and leases of low-value assets and the relevant lease payments are included in profit or loss in the
period or costs of relevant assets in each period of the lease term on a straight-line basis. Short-term
leases are defined as leases with a lease term of not more than 12 months from the commencement
date and excluding a purchase option. Leases of low-value assets are defined as leases with underlying
low value when new. Where the Company subleases or expects to sublease a leased asset the original
lease shall not belong to a lease of low-value asset lease.Lease classification criteria and accounting treatment methods for lessors
√适用□不适用
At the commencement date of lease term the Company classifies leases as financing leases and
operating leases. A financing lease is a lease that transfers substantially all the risks and rewards
incidental to ownership of a leased asset irrespective of whether the ownership of the asset is
eventually transferred. An operating lease is a lease other than a finance lease.As a sub-leasing lessor the Company classifies the sub-leases based on the right-of-use assets of
the original leases. If the original lease is a short-term lease and the Company chooses not to recognize
the right-of-use asset and lease liability for the original lease the Company classifies the sublease as an
operating lease.
(1) Accounting treatment of operating leases
196 / 3522024 Annual Report 197
The lease payments derived from operating leases are recognized as rental income on a
straight-line basis over the respective lease terms. Initial direct costs relating to operating leases to be
incurred by the Company shall be capitalized and then included in the current income by stages at the
same base as the recognition of rental income over the lease term. The variable lease payments not
included in the measurement of lease payments shall be recognized in profit or loss in the period in
which they are occurred.
(2) Accounting treatment of financing leases
At the commencement date of lease term the Company recognizes financing lease receivable and
derecognizes the underlying assets. The Company initially measures financing lease receivable in the
amount of net investment in the lease. Net investment in the lease is the sum of present value of
unguaranteed residual value and the lease payments receivable at the commencement date of lease
term discounted at the interest rate implicit in the lease.The Company calculates and recognizes interest income in each period during the lease term
based on a constant periodic interest rate. The derecognition and impairment losses of financing lease
receivable are accounted for in accordance with this note "Significant Accounting Policies and
Accounting Estimates - Financial Instruments". Variable lease payments not included in the
measurement of the net investment in the lease are included in profit or loss in the period in which
they are occurred.
39. Other significant accounting policies and accounting estimates
√适用□不适用
(1)Fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The Company measures
related assets or liabilities at fair value assuming the assets or liabilities are exchanged in an orderly
transaction in the principal market; in the absence of a principal market assuming the assets or
liabilities are exchanged in an orderly transaction in the most advantageous market. Principal market
(or the most advantageous market) is the market that the Company can normally enter into a
transaction on measurement date.The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value considering the ability of a market participant to
generate an economic benefit from the best use of the asset or the ability to generate an economic
benefit from the sale of the asset to another market participant who can put it to the best use
maximizing the use of relevant observable inputs and using unobservable inputs only if the observable
inputs aren’t available or impractical.Fair value level for assets and liabilities measured or disclosed at fair value in the financial
statements are determined according to the significant lowest level input to the entire measurement:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
Company can access at the measurement date; Level 2 inputs are inputs other than quoted prices
included within Level 1 that are observable for the assets or liabilities either directly or indirectly; Level
3 inputs are unobservable inputs for the assets or liabilities including interest rates that cannot be
directly observed or verified by observable market data stock volatility future cash flows of disposal
obligations assumed in business combinations financial forecasts made using own data etc. On each
balance sheet date the company reassesses the assets and liabilities that are continuously measured
at fair value recognized in the financial statements to determine whether there is a conversion
between the fair value measurement levels.
(2) Share repurchase
If the shares of the company are purchased for reasons such as reducing registered capital or
rewarding employees the actual amount paid shall be treated as treasury shares. If the repurchased
shares are canceled the difference between the total face value of the shares calculated based on the
par value of the canceled shares and the number of canceled shares and the actual amount paid for the
repurchase shall be used to offset the capital reserve if the capital reserve is insufficient for offsetting
and offset against retained earnings. If rewarding the repurchased shares to the employees of the
197 / 3522024 Annual Report 198
company belongs to equity-settled share payment when the employees exercise their rights to
purchase the company's shares and receive the price the cost of the treasury shares delivered to the
employees will be transferred out of the capital reserve (other capital reserve) cumulative recorded
during the waiting period.
(3)Hedging
1. Hedging includes fair value hedging / cash flow hedging / overseas operating net investment
hedging.
2. For hedging instruments that meet the following conditions hedging accounting methods are
used: (1) The hedging relationship consists only of eligible hedging instruments and hedged
instruments; (2) At the beginning of hedging the Company formally designated hedging instrument
and hedged items and prepared written documents on the hedging relationship and the Company's
risk management strategy and risk management objectives for hedging; (3) The hedging relationship
meets the hedging validity requirement.When the hedging meets the following conditions at the same time the Company determines that
the hedging relationship meets the requirements for hedging effectiveness: (1) There is an economic
relationship between the hedged item and the hedging instrument; (2) Among the changes in value
caused by the economic relationship between hedged items and hedging instruments the impact of
credit risk does not dominate; (3) The hedging ratio of the hedging relationship is equal to the ratio of
the actual number of hedged items of the Company to the actual number of hedging instruments but
does not reflect the imbalance of the relative weight of the hedged items and hedging instruments.The Company continuously evaluates whether the hedging relationship meets the requirements
of hedging effectiveness on the hedging start date and later. The hedging relationship no longer meets
the hedging effectiveness requirements due to the hedging ratio but if the risk management objectives
of the designated hedging relationship have not changed the Company will rebalance the hedging
relationship..
3. Accounting treatment of hedging
(a) Fair value hedge
1) Gains or losses from hedging instruments are included in profit or loss for the current period. If
hedging instruments are hedged against non-tradable equity instruments (or their components) that
are selected to be measured at fair value and whose changes are included in other comprehensive
income the gains or losses generated by the hedging instruments are included in other comprehensive
income.
2) Profit or loss for the current period of the hedged item due to risk exposure is calculated as
profit or loss for the current period while adjusting the carrying amount of the confirmed hedged item
not measured at fair value. Hedged items are debt instruments (or their components) that are
measured at fair value and whose changes are included in other comprehensive income. The gains or
losses resulting from the hedged risk exposure are included in profit or loss for the current period
without adjustment its carrying amount; If the hedged item is a non-tradable equity instrument
investment (or its component) measured at fair value and its changes are included in other
comprehensive income the gain or loss resulting from the hedged risk exposure is included in other
comprehensive income not adjusting its carrying amount.If the hedged item is an unrecognized commitment (or its component) the cumulative change in
fair value due to the hedged risk after the hedge relationship is designated is recognized as an asset or
liability and the relevant gains or losses are included profit or loss for each relevant period. When
fulfilling the definite commitment to obtain assets or assume liabilities the initial recognition amount
of the asset or liability is adjusted to include the cumulative change in the fair value of the confirmed
hedged item.If the hedged item is a financial instrument (or a component thereof) measured at amortized cost
the adjustment made by the Company to the carrying amount of the hedged item will be amortized at
the actual interest rate recalculated on the amortization date and included in profit or loss for the
current period. If the hedged item is a debt instrument measured at fair value and its changes are
included in other comprehensive income (components thereof) the accumulated recognized hedging
gains or losses are amortized in the same manner and included in profit or loss for the current period
but does not adjust the carrying amount of the debt instrument (or its components).
198 / 3522024 Annual Report 199
(b) Cash flow hedge
1) The part of the hedging instrument gains or losses that belongs to the effective hedging is
included in other comprehensive income as a cash flow hedge reserve and the invalid part is included
in profit or loss for the current period. The amount of cash flow hedge reserve is recognised according
to the lower of the absolute value of the following two items: * Accumulated gains or losses of
hedging instruments since hedging; * The cumulative change in the present value of the expected
future cash flow of the hedged item since hedging.
2) The hedged item is an expected transaction and the expected transaction causes the Company
to subsequently recognize a non-financial asset or non-financial liability or the expected transaction of
non-financial assets and non-financial liabilities forms a certain commitment applicable to fair value
hedge accounting the Company transfers out the cash flow hedging reserve amount originally
recognized in other comprehensive income and includes it in the initial recognition amount of the asset
or liability.
3) Other cash flow hedges the amount of cash flow hedge reserves originally included in other
comprehensive income are transferred out during the same period when the hedged expected
transaction affects profit or loss and are included in profit or loss for the current period.(c) Net investment hedges for overseas operations
The portion of the gains or losses formed by hedging instruments that are effective hedges is
included in other comprehensive income and when disposing of overseas operations they are
transferred out and included in profit or loss for the current period The part of the loss that belongs to
the invalid hedge is included in profit or loss for the current period.
(4) Significant accounting judgments and estimates
In the process of applying the accounting policy of the Company due to the inherent uncertainty
of the operating activities the Company needs to make judgments estimates and assumptions on the
carrying amount of the report items that cannot be accurately measured. These judgments estimates
and assumptions are based on the Company's management's past historical experience and made on
the basis of considering other relevant factors. These judgments estimates and assumptions will affect
the reported amount of income expenses assets and liabilities and the disclosure of contingent
liabilities on the balance sheet date. However the actual results caused by the uncertainty of these
estimates may be different from the current estimates of the Company's management which will
cause significant adjustments to the carrying amount of assets or liabilities affected in the future. The
Company regularly reviews the aforementioned judgments estimates and assumptions on the basis of
continuous operation. If the changes in accounting estimates only affect the current period of change
the number of impacts will be recognised in the current period of change. If the changes affect both
the current period and the future period the number of impacts will be confirmed in the current
period and future period of change. As of the balance sheet date the Company needs to make
judgments estimates and assumptions on the financial statement items as follows:
1. Classification of lease
When the company acts as a lessor according to the provisions of the Accounting Standards for
Business Enterprises No. 21 - Leases leases are classified as operating leases and financial leases.When determining the classification management needs to make analysis and judgment on whether
all risks and rewards related to the ownership of leased assets have been substantially transferred to
the lessee.
2. Impairment of financial instruments
The Company uses the expected credit loss model to assess impairment of receivables and debt
investments measured at amortized cost receivables financing measured at fair value and changes
included in other comprehensive income and other debt investments. The use of the expected credit
loss model involves significant management judgments and estimates. The key parameters of expected
credit loss measurement include default probability default loss rate and default risk exposure. The
Company considers the quantitative analysis of historical statistical data and forward-looking
information to establish default probability default loss rate and default risk exposure model. The
difference between the actual financial instrument impairment result and the original estimate will
affect the carrying amount of the financial instrument and the accrual or reversal of credit impairment
losses during the period when the estimate is changed.
199 / 3522024 Annual Report 200
3. Provision for decline in value in inventories
According to Inventories accounting policy the Company measures according to the lower of cost
and net realizable value. For inventories whose cost is higher than net realizable value and obsolete
and unsalable provision for decline in value of inventories is recognized. Impairment to net realizable
value is based on the assessment of the marketability of Inventories and its net realizable value.Appraisal of Inventories impairment requires management to make judgments and estimates based on
factors such as the purpose of holding Inventories and the impact of events after the balance sheet
date. The difference between the actual result and the original estimate will affect the carrying amount
of Inventories and the accrual of Inventory Provision for decline in value or return during the period
when the estimate is changed.
4. Impairment of non-financial non-current assets
On the balance sheet date the Company judges whether there is any sign of possible impairment
of Non-current assets other than financial assets. For intangible assets with uncertain service life in
addition to the annual impairment test when there are signs of impairment an impairment test is also
conducted. Non-current assets other than financial assets are tested for impairment when there are
signs that their book amount is not recoverable.When the carrying amount of an asset or asset group is higher than the recoverable amount
which is the higher of the fair value minus the disposal cost and the present value of the expected
future cash flow it indicates that an impairment has occurred.The net value of fair value minus disposal expenses is determined by referring to the sales
agreement price or observable market price of similar assets in fair transactions minus the incremental
costs that can be directly attributed to the disposal of the asset. When predicting the present value of
future cash flows it is necessary to make a significant judgment on the output selling price related
operating costs of the asset (or asset group) and the discount rate used in calculating the present
value. When estimating the recoverable amount the Company will use all relevant information that
can be obtained including the prediction of production selling price and related operating costs based
on reasonable and supportable assumptions.The Company assesses whether goodwill is impaired at least annually and requires an estimate of
the use value of the asset group to which goodwill is allocated. When estimating the value in use the
Company needs to estimate the future cash flow from the asset group and at the same time choose an
appropriate discount rate to calculate the present value of the future cash flow.
5. Depreciation and amortization
After considering the residual value of the investment properties measured at cost model fixed
assets and Intangible assets the Company depreciates and amortizes it according to the straight-line
method during the service life. The Company regularly reviews the service life to determine the
amount of depreciation and amortization expenses to be included in each reporting period. The service
life is determined by the Company based on the previous experience of similar assets and the expected
technical update. If the previous estimates change significantly the depreciation and amortization
expenses will be adjusted in the future.
6. Deferred tax assets
To the extent that there is likely to be enough taxable profits to offset losses the Company
recognizes deferred tax assets for all unutilized tax losses. This requires the Company's management to
use a lot of judgment to estimate the time and amount of future taxable profits combined with tax
planning strategies to determine the amount of deferred tax assets that should be recognised.
7. Income tax
In the normal business activities of the Company there are certain uncertainties in the final tax
treatment and calculation of some transactions. Whether certain items can be paid before taxes
requires the approval of the tax authorities. If the final determination result of these tax matters is
different from the originally estimated amount the difference will have an impact on the current
income tax and deferred income tax during the final determination period.
8. Fair value measurement
Certain assets and liabilities of the Company are measured at fair value in the financial statements.When estimating the fair value of an asset or liability the Company uses the observable market data
available; if the Level 1 input value is not available a third-party qualified assessment agency is
200 / 3522024 Annual Report 201
employed for valuation. The Company's management works closely with it to determine the
appropriate valuation techniques and input values for related models. Relevant information about the
valuation techniques and input values used in the process of determining the fair value of various
assets and liabilities are disclosed in this note.
40. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√适用□不适用
Unit: Yuan Currency: RMB
The content and reason of Name of the report item that is
accounting policy changes significantly affected Affected amount
The Ministry of Finance issued
the "Accounting Standards for
Business Enterprises
Interpretation No. 17" (Cai Kuai
[2023] No. 21 hereinafter
referred to as "Interpretation [Note 1]
No. 17") on Oct 25 2023. The
company will implement the
provisions of "Interpretation
No. 17" from Ja 1 2024.The Ministry of Finance issued
the "Accounting Standards for
Business Enterprises
Interpretation No. 18" (Cai Kuai
[2024] No. 24 hereinafter
referred to as "Interpretation [Note 2]
No. 18") on Dec 6 2024. The
company will implement the
provisions of "Interpretation
No. 18" from Dec 6 2024.Other notes:
[Note 1]:
(1) Regarding the classification of current and non-current liabilities Interpretation No. 17
stipulates that if an enterprise does not have the substantive right to defer settlement of a liability for
more than one year after the balance sheet date at the balance sheet date such liability shall be
classified as a current liability. For liabilities that meet the classification criteria for non-current
liabilities even if the enterprise has the intention or plan to settle them early within one year after the
balance sheet date or has settled them early between the balance sheet date and the date when the
financial statements are approved for issuance they shall still be classified as non-current liabilities. For
liabilities arising from loan arrangements with covenant conditions when determining their liquidity
classification the following circumstances should be considered to determine whether there is a right
to defer settlement of the liability at the balance sheet date: 1) Covenant conditions that the enterprise
must comply with on or before the balance sheet date affect the liquidity classification of the liability at
the balance sheet date; 2) Covenant conditions that the enterprise must comply with after the balance
sheet date are irrelevant to the liquidity classification of the liability at the balance sheet date. If the
terms of a liability result in its settlement through the delivery of the enterprise's own equity
instruments at the option of the counterparty and if the enterprise classifies such option as an equity
instrument and separately recognizes it as the equity component of a compound financial instrument
then such terms shall not affect the liquidity classification of that liability.
201 / 3522024 Annual Report 202
Our company has implemented the provisions on "classification of current and non-current
liabilities" in Interpretation No. 17 from January 1 2024 and has made retrospective adjustments for
this accounting policy change. The initial application of this interpretation had no material impact on
the financial statements.
(2) Regarding the disclosure of supplier financing arrangements Interpretation No. 17 stipulates
that when making supplementary disclosures to the cash flow statement an enterprise shall provide
aggregated information relating to supplier financing arrangements. When disclosing liquidity risk
information the enterprise shall consider whether it has obtained or has access to credit facilities that
provide extended payment terms to the enterprise or early payment options to its suppliers through
supplier financing arrangements. When identifying concentrations of liquidity risk the enterprise shall
take into account the fact that supplier financing arrangements result in the concentration of certain
financial liabilities originally payable to suppliers with financing providers.Our company has implemented the provisions on "disclosure of supplier financing arrangements"
in Interpretation No. 17 from January 1 2024 and has applied the prospective method to this
accounting policy change.
(3) Regarding the accounting treatment for sale and leaseback transactions Interpretation No. 17
stipulates that for asset transfers in sale and leaseback transactions that qualify as sales after the
commencement date of the lease term the lessee shall subsequently measure the right-of-use asset
formed by the sale and leaseback in accordance with Article 20 of Accounting Standards for Business
Enterprises No. 21 - Leases (hereinafter referred to as the "Lease Standards") and subsequently
measure the lease liability formed by the sale and leaseback in accordance with Articles 23 to 29 of the
Lease Standards. When the lessee subsequently measures the lease liability formed by the sale and
leaseback the method of determining lease payments or modified lease payments shall not result in
the recognition of gains or losses related to the right of use obtained through the leaseback (excluding
relevant gains or losses from partial or complete termination of the lease due to reduction in lease
scope or lease term caused by lease modifications).Our company has implemented the provisions on "accounting treatment for sale and leaseback
transactions" in Interpretation No. 17 from January 1 2024 and has made retrospective adjustments
for sale and leaseback transactions conducted after the initial implementation date of the Lease
Standards with no material impact on the comparative period financial statements.[Note 2]:
(1) Regarding the accounting treatment for warranty-type quality assurance that does not
constitute a separate performance obligation Interpretation No. 18 stipulates that when accounting
for estimated liabilities arising from warranty-type quality assurance that does not constitute a
separate performance obligation an enterprise shall debit accounts such as "Cost of Goods Sold" and
"Other Operating Costs" and credit the "Estimated Liabilities" account with corresponding
presentation in the income statement under "Operating Costs" and in the balance sheet under "Other
Current Liabilities" "Non-current Liabilities Due Within One Year" and "Estimated Liabilities"; such
amounts shall no longer be recorded in the "Selling Expenses" account.Our company has implemented the provisions on "accounting treatment for warranty-type quality
assurance that does not constitute a separate performance obligation" in Interpretation No. 18 from
December 6 2024 and has made retrospective adjustments for this accounting policy change with no
material impact on the financial statements upon initial application of this interpretation.
(2). Changes in significant accounting estimates
□适用√不适用
(3). From 2024 the first implementation of new accounting standards or interpretations of
standards involving adjustments to the financial statements at the beginning of the year of
initial implementation
□适用√不适用
202 / 3522024 Annual Report 203
41. Others
□适用√不适用
VI. Taxation
1. Major taxes and their tax rates
Major taxes and their tax rates
√适用□不适用
Taxes Tax basis Tax rate %
Value-added tax Value-added generated during the Calculated and paid according to tax rates
sale of goods or provision of taxable of 3% 5% 6% 9% and 13%. The export
services goods implement the tax policy of
"exemption credit and refund" and the tax
refund rate is 13%.Consumption tax taxable sales volume Gasoline: 1.52 yuan/liter
Diesel: 1.20 yuan / liter
Aviation kerosene: 1.20 yuan / liter
Naphtha: 1.52 yuan/liter
Solvent oil：1.52 yuan/liter
lubricating oil: 1.52 yuan/liter
Fuel oil: 1.20 yuan / liter[note1]
Urban Turnover tax payable 7% 5% etc.maintenance and
construction tax
Education Turnover tax payable 3%
surcharge
Local education Turnover tax payable 2%
surcharges
Enterprise Subject to taxable profit [note2]
income tax
[Note1] From June 30 2023 according to the provisions of the Announcement on the
Implementation of the Consumption Tax Policy for Some Refined Oil Products (Announcement No. 11
of the Ministry of Finance and the State Administration of Taxation) issued by the Ministry of Finance
and the State Administration of Taxation (1) alkylate oil (isooctane) will be subject to consumption tax
in accordance with gasoline; (2) petroleum ether crude white oil light white oil and some industrial
white oil (No. 5 No. 7 No. 10 No. 15 No. 22 No. 32 No. 46) will be subject to consumption tax in
accordance with solvent oil; (3) mixed aromatic hydrocarbons heavy aromatic hydrocarbons mixed C8
stable light hydrocarbons light oil and light coal tar will be subject to consumption tax in accordance
with naphtha; (4) aerospace kerosene will be temporarily exempted from consumption tax with
reference to aviation kerosene.[Note2] For the description of the income tax rate for enterprises with different tax rates please
see the table below.If there are different taxpayers of enterprise income tax rate disclosure description
√适用□不适用
Entity Income tax rate (%)
Jiangsu Hengli Chemical Fiber Co. Ltd. 15.00%
Jiangsu Hengke Advanced Materials Co. Ltd. 15.00%
Jiangsu XuanDa Polymer Materials Co. Ltd. 15.00%
203 / 3522024 Annual Report 204
Jiangsu Deli Chemical Fiber Co. Ltd. 15.00%
Suzhou Binglin Trading Co. Ltd. 20.00%
Kanghui New Material Technology Co. Ltd. 15.00%
Jiangsu Kanghui New Material Technology Co. Ltd. 15.00%
Kanghui Dalian New Material Technology Co. Ltd. 15.00%
Shenzhen Ganghui Trading Co. Ltd. 20.00%
Hengli Storage and Transportation (Dalian) Co.Ltd. 20.00%
Hengli Energy (Hainan) Co. Ltd. 15.00%
Hengli Petrochemical (Hainan) Co. Ltd. 15.00%
Suzhou Hengli Energy Chemical Import & Export
Co. Ltd. 20.00%
Dalian Northeast Asia Petrochemical Products Co.Ltd. 20.00%
Dalian Northeast Asia Energy Co. Ltd. 20.00%
Hengli Energy Import & Export Co. Ltd. 20.00%
Hengli New Energy (Shanghai) Co. Ltd. 20.00%
Dalian Hengli Fine Chemicals Sales Co. Ltd. 20.00%
Hengli Energy Chemical (Sanya) Co. Ltd. 15.00%
Hengli Petrochemical Sales (Haikou) Co. Ltd. 20.00%
Dalian Hengli Petrochemical Sales Co. Ltd. 20.00%
Dalian Hengli New Energy Sales Co. Ltd. 20.00%
Nantong Hengli Maoyuan Petrochemical Trading
Co. Ltd. 20.00%
Hengli Petrochemical Sales (Shenzhen) Co. Ltd. 20.00%
Shanghai Hengli Fuel Oil Co. Ltd. 20.00%
Suzhou Fangtuan.com E-commerce Co. Ltd. 20.00%
Hengli Petrochemical Trading (Suqian) Co. Ltd. 20.00%
Suqian Hengli Chemical Import & Export Co. Ltd. 20.00%
HENGLI PETROCHEMICAL CO. LIMITED 16.50%
HENGLI PETROCHEMICAL INTERNATIONAL PTE.LTD. 5.00%
HENGLI SHIPPING INTERNATIONAL PTE.LTD. 0.00%
Other taxpayers other than the above
2. Tax incentive
√适用□不适用
1．Consumption tax incentiveAccording to “Notice on Continuing the Implementation of Part of the Consumption Tax Policy forNaphtha Fuel Oil” (Cai Shui [2011] No. 87) issued by the Ministry of Finance the People's Bank of China
and the State Administration of Taxation "Notice on Improving the Consumption Tax Rebate Policy for
the Production of Vinyl Aromatic Chemical Products from Naphtha Fuel Oil" (Cai Shui [2013] No. 2)
issued by Ministry of Finance People's Bank of China General Administration of Customs and State
Administration of Taxation "Interim Measures for Consumption Tax Refund (Exemption) for Naphtha
and Fuel Oil Used in the Production of Ethylene and Aromatic Chemical Products" (Announcement of
the State Administration of Taxation [2012] No. 36) issued by the State Administration of Taxation and
"Announcement on Consumption Tax Refund of Naphtha Fuel Oil Production of Vinyl Aromatic
Chemical Products" (Announcement No. 29 [2013] of the State Administration of Taxation and the
General Administration of Customs) issued by State Administration of Taxation and General
Administration of Customs production enterprises that implement the fixed-point direct supply plan
sell naphtha and fuel oil within the planned quantity limit and issue a special invoice for the
204 / 3522024 Annual Report 205
value-added tax of the Chinese character anti-counterfeiting version with the "DDZG" logo are exempt
from consumption tax. Hengli Petrochemical (Dalian) Refining Co. Ltd. is eligible for tax rebate and
enjoys the preferential policy of consumption tax rebate paid for the procurement process. At the
same time the implementation of the fixed-point direct supply plan meets the above conditions and
enjoys the preferential policy of exempting consumption tax from the sales process.According to the "Notice on Continuing to Increase Consumption Tax of Refined Oils" (Cai Shui
[2015] No. 11) issued by the Ministry of Finance and the State Administration of Taxation consumption
tax for diesel aviation kerosene and fuel oil has been increased from RMB 1.1 per liter to RMB 1.2 per
liter and aviation kerosene continued to suspend the collection of consumption tax. Hengli
Petrochemical (Dalian) Refining Co. Ltd. enjoys the preferential policy of suspending the collection of
consumption tax for the sale of aviation kerosene.
2. Enterprise income tax incentive to high-tech enterprises
Jiangsu Hengli Chemical Fiber Co. Ltd. obtained the "High-tech Enterprise Certificate" (No.:
GR202432004584) issued by Jiangsu Provincial Department of Science and Technology Jiangsu
Provincial Department of Finance and Jiangsu Provincial Taxation Bureau of the State Administration
of Taxation on 19 November 2024. The validity period is three years and the enterprise income tax
rate for the current year is calculated at a reduced rate of 15%.Jiangsu Hengke Advanced Materials Co. Ltd. obtained the "High-tech Enterprise Certificate" (No.:
GR202232005286) issued by the Jiangsu Provincial Department of Science and Technology the Jiangsu
Provincial Department of Finance and the Jiangsu Provincial Taxation Bureau of the State
Administration of Taxation on 22 November 2022. The validity period is three years and the enterprise
income tax rate for the current year is calculated at a reduced rate of 15%.Jiangsu Deli Chemical Fiber Co. Ltd. obtained the "High-tech Enterprise Certificate" (No.:
GR202032006951) issued by the Jiangsu Provincial Department of Science and Technology the Jiangsu
Provincial Department of Finance and the Jiangsu Provincial Taxation Bureau of the State
Administration of Taxation on 2 December 2020. The validity period is three years and the enterprise
income tax rate for the current year is calculated at a reduced rate of 15%.Jiangsu Xuanda Polymer Materials Co. Ltd. obtained the High-tech Enterprise Certificate (No.GR202332019613) issued by the Jiangsu Provincial Department of Science and Technology the Jiangsu
Provincial Department of Finance and the Jiangsu Provincial Taxation Bureau of the State
Administration of Taxation on December 13 2023。 The validity period is three years and theenterprise income tax rate for the current year is calculated at a reduced rate of 15%.Kanghui New Material Technology Co. Ltd. obtained the "High-tech Enterprise Certificate" (No.:
GR202432004129) issued by the Liaoning Provincial Department of Science and Technology the
Liaoning Provincial Department of Finance and the Liaoning Provincial Taxation Bureau of the State
Administration of Taxation on 27 November 2024. The validity period is three years and the enterprise
income tax rate for the current year is calculated at a reduced rate of 15%.Jiangsu Kanghui New Materials Technology Co. Ltd. obtained the "High-tech Enterprise
Certificate" (No.: GR202121000541) issued by the Jiangsu Provincial Department of Science and
Technology the Jiangsu Provincial Department of Finance and the Jiangsu Provincial Taxation Bureau
of the State Administration of Taxation on November 19 2024. The validity period is three years and
the enterprise income tax rate for the current year is calculated at a reduced rate of 15%.Kanghui Dalian New Materials Technology Co. Ltd. obtained the "High-tech Enterprise Certificate"
(No.: GR202321200254) issued by the Liaoning Provincial Department of Science and Technology the
Liaoning Provincial Department of Finance and the Liaoning Provincial Taxation Bureau of the State
Administration of Taxation on December 12 2023. The validity period is three years and the enterprise
income tax rate for the current year is calculated at a reduced rate of 15%.
3．Enterprise income tax incentive to small and low-profit enterprises
18 companies including Suzhou Binglin Trading Co. Ltd. meet the identification standards of small
low-profit enterprises and their taxable income is included in the taxable income at a reduced rate of
25% and they pay corporate income tax at a rate of 20%.
4．Other enterprise income tax incentive
205 / 3522024 Annual Report 206
HENGLI PETROCHEMICAL INTERNATIONAL PTE. LTD. is registered in Singapore and the income tax
rate is 17%. It was approved to enter the Singapore Global Trader Project on 1 September 2018 and
enjoys a 5% income tax rate this year.HENGLI SHIPPING INTERNATIONAL PTE. LTD. is registered in Singapore and the income tax rate is
17%. It received a tax incentive called Maritime Sector Incentive (MSI) on 22 January 2020 and enjoys
a 0% income tax rate for this year.Hengli Petrochemical (Hainan) Co. Ltd. Hengli Energy (Hainan) Co. Ltd. and Hengli Energy
Chemical (Sanya) Co. Ltd. are encouraged industrial enterprises registered and operating in Hainan
Free Trade Port. According to the "Notice of the Ministry of Finance and the State Administration of
Taxation on the Preferential Policies for Enterprise Income Tax in Hainan Free Trade Port" (Cai Shui
[2020] No. 31) the enterprise income tax is levied at a reduced tax rate of 15% this year.
3. Others
□适用√不适用
VII. Notes to the items of consolidated financial statements
1. Cash and bank balances
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Cash on hand 423193.13 609377.49
Cash at bank 21376863416.33 13557873658.60
Other monetary funds 9459354146.43 6910556113.05
Deposit in financial
company
Total 30836640755.89 20469039149.14
Including: Total
amount of money 6644152300.79 1690168335.12
deposited abroad
Other notes:
For details of funds with limited ownership or use rights such as mortgage pledge seizure
freezing and attachment see the note "Notes to Consolidated Financial Statements Items - Ownership
or using rights of assets subject to restriction" in this section.For details of cash and bank balances in foreign currency please refer to the description of “Notesto Consolidated Financial Statements Items — Items in foreign currencies” in this note.
2. Financial assets held for trading
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance Specify the reason
and basis
Financial assets measured at
fair value and the changes of
which are included in the 428380369.27 298830073.13 /
current profit and loss
Including:
Derivative financial 253102045.59 48652243.29 /
206 / 3522024 Annual Report 207
assets
Investment in debt
instruments 105825612.00 131265471.64 /
Bank wealth
management and structured 37890000.00 /
deposits
Fund trust and asset
management products 69452711.68 81022358.20 /
Financial assets designated to
be measured at fair value
with changes recognized in
current profit and loss
Including:
Total 428380369.27 298830073.13 /
Other notes:
□适用√不适用
3. Derivative financial assets
□适用√不适用
4. Notes receivable
(1). Notes receivable by category
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Commercial acceptance bills 28601284.34 -
Total 28601284.34 -
(2). Notes receivable pledged by the company at the end of the period
□适用√不适用
(3). At the end of the period the company has endorsed or discounted notes receivable on the
balance sheet date not yet expiry
√适用□不适用
Unit: Yuan Currency: RMB
Item Derecognized amount at Non-derecognized amount atperiod-end period-end
Bank acceptance bills - -
Commercial acceptance bills - 15280567.60
Total - 15280567.60
(4). Disclosure by method of provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
207 / 3522024 Annual Report 208
Closing balance Beginning balance
Book balance Provision for bad Book Provision for
Categor debts balance bad debtsCarrying Carryi
y
Rati Provisi amount Provisi
ng
Amount o Amount on Amo
Rat
io Amo on
amou
(%) ratio unt (%) unt ratio
nt
(%)(%)
Provisio
n for
bad
debts - - - - - - - - - -
on
individu
al basis
Including:
----------
Provisio
n for
bad
debts 3010661 100. 150533 28601285.10 00 0.76 5.00 4.34 - - - - -on
portfoli
o basis
Including:
Comme
rcial
accepta 3010661 100. 150533 2860128
nce bills 5.10 00 0.76 5.00 4.34 - - - - -
portfoli
o
Total 3010661 / 150533 / 28601285.10 0.76 4.34 - / - / -
Provision for bad debts on individual basis:
□适用√不适用
Provision for bad debts on portfolio basis:
√适用□不适用
Portfolio basis: commercial acceptance bill portfolio
Unit: Yuan Currency: RMB
Closing balance
Item
Notes Receivable Provision for bad debts Provision ratio (%)
Commercial
acceptance bills 30106615.10 1505330.76 5.00
portfolio
total 30106615.10 1505330.76 5.00
Explanation of provision for bad debts on portfolio basis
□适用√不适用
208 / 3522024 Annual Report 209
According to the expected credit loss general model to accrual provision for bad debts:
□适用√不适用
Basis for dividing each stage and proportion of bad debt provision：
None
Explanation of the significant change in the book balance of notes receivable due to changes in
provisions for losses incurred during the current period:
□适用√不适用
(5). Provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
Movement in the year
Category Beginning Closingbalance Accrual Recovery Transfer or Other balanceor reversal written-off movement
Provision
for bad
debts on - - - - -
individual
basis
Provision
for bad
debts on - 1505330.76 - - - 1505330.76
portfolio
basis
Total - 1505330.76 - - - 1505330.76
The amount of bad debt provision recovered or reversed in the current period is important:
□适用√不适用
Other notes:
None
(6). Notes receivable actually written off in this period
□适用√不适用
The important write-off of notes receivable:
□适用√不适用
Notes for write-off of notes receivable:
□适用√不适用
Other notes:
□适用√不适用
209 / 3522024 Annual Report 210
5. Accounts receivable
(1). Disclosure by aging
√适用□不适用
Unit: Yuan Currency: RMB
Aging Closing balance Beginning balance
Within one year
Including: Within one year
Within one year 598992361.10 555164763.19
Subtotal of within one year 598992361.10 555164763.19
1 to 2 years 2482959.01 178.36
2 to 3 years 5.75 59.26
Over 3 years
3 to 4 years 0.15 168.29
4 to 5 years 31.24
Over 5 years 3333587.50 3333868.92
Total 604808913.51 558499069.26
(2). Disclosure by method of provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Book balance Provision for Book balance Provision for
Cate bad debts bad debtsCarryin Carryin
gory Prov g Prov g
Amount Propor Amoun ision amount Amount Propor Amoun ision amounttion(%) t ratio tion(%) t ratio
(%)(%)
Provi
sion
for
bad
debt
s on
indiv
idual
basis
Including:
B
Provi
sion
for
bad 604808 100.00 25780debt 913.51 397.28 4.26
57902855849920083538415
516.23069.26100.00809.933.60259.33
s on
portf
olio
basis
Including:
210 / 3522024 Annual Report 211
Agin
g
anal 444820 73.55 25780 419040 338328 20083 318244ysis 863.63 397.28 5.80 466.35 746.30 60.58 809.93 5.94 936.37
portf
olio
High
credi
t
ratin 159988 26.45 - - 159988 220170 39.42 - - 220170
g 049.88 049.88 322.96 322.96
portf
olio
Total 604808 100.00 25780 579028 558499 20083 538415913.51 397.28 / 516.23 069.26 100.00 809.93 / 259.33
Provision for bad debts on individual basis:
□适用√不适用
Provision for bad debts on portfolio basis:
√适用□不适用
Portfolio basis: Aging analysis portfolio High credit rating portfolio
Unit:Yuan Currency:RMB
Closing balance
Name
Accounts receivable Provision for bad debts Provision ratio (%)
Aging analysis
portfolio 444820863.63 25780397.28 5.80
High credit rating
portfolio 159988049.88 - -
Total 604808913.51 25780397.28 4.26
Explanation of provision for bad debts on portfolio basis:
√适用□不适用
Portfolio basis: Aging analysis portfolio
Item Book balance Provision for bad debts Provision ratio (%)
Within one
year(including one 439004311.22 21950215.56 5.00
year)
1-2 years 2482959.01 496591.80 20.00
2-3 years 5.75 2.30 40.00
3-4 years 0.15 0.12 80.00
4-5 years - - -
Over 5 years 3333587.50 3333587.50 100.00
Subtotal 444820863.63 25780397.28 5.80
According to the expected credit loss general model to accrual provision for bad debts:
□适用√不适用
Basis for division into different stages and bad debt provision ratio
None
211 / 3522024 Annual Report 212
Explanation of significant changes in the book balance of accounts receivable for which loss reserves
have changed during the current period:
□适用√不适用
(3). Provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
Movement in the year
Category Beginning Recovery Transferbalance Closing balanceAccrual or or Other
reversal written-off movement
Provision
for bad
debts on
individual
basis
Provision
for bad
debts on 20083809.93 5696587.35 - - - 25780397.28
portfolio
basis
Total 20083809.93 5696587.35 - - - 25780397.28
Including significant amount of recovery or reversal of provision for bad debts:
□适用√不适用
Other notes:
None
(4). Accounts receivable written-off during the year
□适用√不适用
The important write-off of accounts receivable:
□适用√不适用
Notes for write-off of accounts receivable:
□适用√不适用
(5). Accounts receivable due from the top five debtors
√适用□不适用
Other notes:
The Company’s top five year-end balances for accounts receivable in total of RMB 280094369.20
accounting for 46.31% of the total account balance of year-end balances of accounts receivable and
the corresponding year-end balance of provision for bad debts is RMB 8905634.49.Other notes:
√适用□不适用
For details of accounts receivable in foreign currency at year end please refer to the description
of “Notes to Consolidated Financial Statements Items — Items in foreign currencies” in this note.
212 / 3522024 Annual Report 213
6. Contract assets
(1). Information of contract assets
□适用√不适用
(2). The amount and reasons for major changes in the carrying amount during the reporting period
□适用√不适用
(3). Disclosure by method of provision for bad debts
□适用√不适用
Provision for bad debts on individual basis:
□适用√不适用
Notes for provision for bad debts on individual basis:
□适用√不适用
Provision for bad debts on portfolio basis:
□适用√不适用
According to the expected credit loss general model to accrual provision for bad debts:
□适用√不适用
Basis for dividing each stage and proportion of bad debt provision：
None
Explanation of the significant change in the book balance of notes receivable due to changes in
provisions for losses incurred during the current period:
□适用√不适用
(4). Provision for impairment of contract assets in the period
□适用√不适用
Including significant amount of recovery or reversal of provision for bad debts:
□适用√不适用
Other notes:
None
(5). Contract assets actually written off in this period
□适用√不适用
The important write-off of contract assets:
□适用√不适用
Notes for write-off of contract assets:
□适用√不适用
213 / 3522024 Annual Report 214
Other notes:
□适用√不适用
7. Receivables Financing
(1). Classification of receivables financing
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Bank acceptance bills 4132822845.08 3574549065.24
Letter of credit 2495840907.17 595498497.19
Letter of guarantee
Total 6628663752.25 4170047562.43
(2). Pledged receivables financing at year end
√适用□不适用
Unit: Yuan Currency: RMB
Item Amount pledged at year end
Bank acceptance bills 3468255192.24
Total 3468255192.24
(3). Receivables financing that the Company has endorsed or discounted at the end of the period
and has not yet expired on the balance sheet date
√适用□不适用
Unit: Yuan Currency: RMB
Item Amount derecognized at year Amount not derecognized at yearend end
Bank acceptance bills 4327562624.02
Letter of credit 27750000.00
Total 4355312624.02
(4). Disclosure by classification of provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Book balance Provision for
Provision
bad debts Book balance for badCateg Carrying debts Carrying
ory amount amount
Rati Provi Provision
Amount o Amo sion Amo
Ra
Amount tio Amo ratio (%)
(%) unt ratio unt unt(%) (%)
Provis
ion
for
214 / 3522024 Annual Report 215
bad
debts
on
indivi
dual
basis
Including:
Provis
ion
for
bad
debts 6628663 100 6628663 4170047 100. 4170047
on 752.25 .00
--752.25562.4300--562.43
portf
olio
basis
Including:
Low
risk 6628663 100 - - 6628663 4170047 100. - - 4170047
group 752.25 .00 752.25 562.43 00 562.43
Total 6628663 100 - - 6628663 4170047 100. - - 4170047752.25 .00 752.25 562.43 00 562.43
Provision for bad debts on individual basis:
□适用√不适用
Notes for bad debts on individual basis:
□适用√不适用
Provision for bad debts on portfolio basis:
√适用□不适用
Portfolio basis: Low risk group
Unit: Yuan Currency: RMB
Closing balance
Portfolio
Receivable financing Bad debt provision Receivable financing
Low risk group 6628663752.25 - -
Total 6628663752.25 - -
Notes for bad debts on portfolio basis
□适用√不适用
According to the expected credit loss general model to accrual provision for bad debts:
□适用√不适用
Basis for dividing each stage and proportion of bad debt provision：
None
Explanation of the significant change in the book balance of receivables financing due to changes in
provisions for losses incurred during the current period:
□适用√不适用
215 / 3522024 Annual Report 216
(5). Provision for bad debts
□适用√不适用
The significant amount of provision for bad debt recovered or reversed in the current period:
□适用√不适用
Other notes:
None
(6). Receivable financing written-off during the year
□适用√不适用
The important write-off of receivables financing:
□适用√不适用
Notes for write-off of receivables financing:
□适用√不适用
(7). Changes in the increase or decrease of receivables financing and fair value during the year:
√适用□不适用
Changes in Fair
Item Beginning balance Change in cost incurrent period value for the Closing balanceyear
Bank
acceptance bills 3574549065.24 558273779.84 - 4132822845.08
Letter of credit 595498497.19 1900342409.98 - 2495840907.17
Total 4170047562.43 2458616189.82 - 6628663752.25
Continued:
Accumulated loss
allowance
Item Cost in beginningof year Cost at year end
Cumulative fair recognized in
value change other
comprehensive
income
Bank
acceptance 3574549065.24 4132822845.08 - -
bills
Letter of credit 595498497.19 2495840907.17 - -
Total 4170047562.43 6628663752.25 - -
(8). Other notes
√适用□不适用For details of receivables financing in foreign currency at year end please refer to the “Notes toConsolidated Financial Statements Items-Items in foreign currencies” in this note.
216 / 3522024 Annual Report 217
8. Prepayments
(1). Prepayments by aging
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Aging
Amount Ratio (%) Amount Ratio (%)
Within one
year 2430641708.29 99.94 1732994594.34 99.85
1 to 2 years 1232368.92 0.05 1454511.64 0.08
2 to 3 years 53119.99 0.00 139039.58 0.01
Over 3 years 200462.05 0.01 970390.00 0.06
Total 2432127659.25 100.00 1735558535.56 100.00
Note to significant prepayment was aging over 1 year but not settled:
At the end of the period there was no significant prepayments with aging over 1 year.
(2). Prepayments of the top five companies by end-of-period balances by prepayment recipients
√适用□不适用
Other notes:
The top five of the Company's prepayments balance at year end is in total of RMB
1888238670.65 which accounted for 77.64% of the prepayments balance.
Other notes:
√适用□不适用
No obvious signs of impairment were found in the prepayments at the end of the period so no
provision for bad debts was made.
9. Other receivables
Presented by item
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 441295980.89 809207973.41
Total 441295980.89 809207973.41
Other notes:
□适用√不适用
Interest receivable
(1). Interest receivable by category
□适用√不适用
(2). Significant overdue interest
□适用√不适用
217 / 3522024 Annual Report 218
(3). Disclosure by bad debt provision method
□适用√不适用
Provision for bad debts on individual basis:
□适用√不适用
Explanation on provision for bad debts on individual basis:
□适用√不适用
Provision for bad debts on portfolio basis:
□适用√不适用
(4). Provision for bad debts based on the general model of expected credit losses
□适用√不适用
Basis for dividing each stage and proportion of provision for bad debts:
None
Explanation of the significant change in the book balance of interest receivable due to changes in
provisions for losses incurred during the current period:
□适用√不适用
(5). Provision for bad debts
□适用√不适用
The significant amount of provision for bad debts recovered or reversed in the current period:
□适用√不适用
Other notes:
None
(6). Interest receivable written-off during the year
□适用√不适用
The important write-off of Interest receivable:
□适用√不适用
Notes for write-off:
□适用√不适用
Other notes:
□适用√不适用
218 / 3522024 Annual Report 219
Dividends receivable
(1). Dividends receivable
□适用√不适用
(2). Significant dividends receivable aged over 1 year
□适用√不适用
(3). Information of provision for bad debts
□适用√不适用
Provision for bad debts on individual basis:
□适用√不适用
Notes for provision for bad debts on individual basis:
□适用√不适用
Provision for bad debts on portfolio basis:
□适用√不适用
(4). Provision for bad debts based on the general model of expected credit losses
□适用√不适用
Basis for dividing each stage and proportion of provision for bad debts:
None
Explanation of the significant change in the book balance of interest receivable due to changes in
provisions for losses incurred during the current period:
□适用√不适用
(5). Provision for bad debts
□适用√不适用
The significant amount of provision for bad debts recovered or reversed in the current period:
□适用√不适用
Other notes:
None
(6). Dividends receivable actually written off during the year
□适用√不适用
The important write-off of dividends receivable:
□适用√不适用
Notes for write-off of dividends receivable:
□适用√不适用
219 / 3522024 Annual Report 220
Other notes:
□适用√不适用
Other receivables
(1). Disclosure by aging
√适用□不适用
Unit: Yuan Currency: RMB
Aging Book balance at year end Book balance in beginning ofyear
Within one year
Including: Within one year
Within a year 242427180.77 401459574.96
Subtotal of within one year 242427180.77 401459574.96
1 to 2 years 85728844.26 4799022.80
2 to 3 years 3661669.31 3284016.04
Over 3 years
3 to 4 years 2745144.91 525933831.04
4 to 5 years 139314257.57 -
Over 5 years 617660.15 617660.15
Total 474494756.97 936094104.99
(2). Disclosure by nature
√适用□不适用
Unit: Yuan Currency: RMB
Nature Book balance at year end Book balance in beginning ofyear
Deposits and security deposits 139546752.32 273009259.42
Petty cash 635042.32 389094.11
Tax refund receivable 147415292.09 555809007.74
Others 186897670.24 106886743.72
Total 474494756.97 936094104.99
(3). Information of provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
First stage Second stage Third stage
Provision for bad Expected credit Expected credit loss Expected credit loss
debts loss within next for lifetime (no for lifetime (credit
Total
12 months credit impairment impairment hasoccurred) occurred)
Balance of 1
January 2024 126886131.58 - 126886131.58
Balance of 1
January 2024
movement in the
year
--transfer to
second stage
220 / 3522024 Annual Report 221
--transfer to third
stage
--Reverse to
second stage
--Reverse to first
stage
Provision for the
year 11415075.75 11415075.75
Reversal in the
year
Transfer in the
year 105102431.25 105102431.25
Write-off in the
year
Other movement
Balance of 31
December 2024 33198776.08 33198776.08
Basis for dividing each stage and proportion of bad debt provision:
The basis for dividing each stage is detailed in the note "Impairment of Financial Instruments" in
“Significant accounting policies and accounting estimates - financial instruments”.Note on the significant changes in other receivables book balance that have changed the loss provision
in the current period:
□适用√不适用
Basis for accruing bad debt provision for the current period and assessing whether the credit risk of
financial instruments has increased significantly:
√适用□不适用
The basis input values assumptions and other information used to determine the provision for
bad debts amount and the assessment of whether the credit risk of financial instruments have
increased significantly since initial confirmation are detailed in the note “Credit Risk” in “Risks relatedto financial instruments - various risks arising from financial instruments”.
(4). Provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
Movement in the year
Category Beginning Recover Closingbalance Accrual y or Transfer or
Other
balance
reversal written-off
movemen
t
Provision
for bad
debts on 105102431.25 - -
105102431.2
individua 5
--
l basis
Provision
for bad
debts on 21783700.33 11415075.7 - - - 33198776.0
portfolio 5 8
basis
Total 126886131.5 11415075.7 - 105102431.2 - 33198776.0
221 / 3522024 Annual Report 222
8558
Including significant amount of recovery or reversal of provision for bad debts:
□适用√不适用
Other notes:
None
(5). Other receivables actually written-off during the year
□适用√不适用
The important write-off of other receivables:
□适用√不适用
Notes for write-off of other receivables:
□适用√不适用
(6). Other receivables due from the top five debtors
√适用□不适用
The Company’s top five year-end balances for other receivables in total of RMB 373801411.19
accounting for 78.78% of the total account balance of year-end balances of other receivables and the
corresponding year-end balance of provision for bad debts is RMB 23939448.11.
(7). Other receivables reported due to centralized management of funds
□适用√不适用
Other notes:
√适用□不适用For details of other receivables in foreign currency at year end please refer to the “Notes toConsolidated Financial Statements Items — Items in foreign currencies” in this note.
10. Inventories
(1). Inventories by category
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Provision
for decline Provision for Provision for
in value of decline in decline in
inventories/ value of value of
Item Book Provision Book inventories/ inventories/
balance for balance Provision for
Book Provision for
impairment impairment
balance impairment
of contract of contract of contract
performanc performance performancecost cost
e cost
Raw 160878052 42431268 156634925 204702060 2939250 201762810
materials 77.58 7.98 89.60 61.43 21.84 39.59
Work-in-pr
222 / 3522024 Annual Report 223
ogress
Finished 604819175 17007937 587811238 939621093 1610382 923517272
goods 6.86 4.92 1.94 8.49 12.47 6.02
Reusable 47963877.7 - 47963877.7 24541576.3 - 24541576.3materials 4 4 6 6
Consumptiv
e biological
assets
Contract
performanc
e cost
Semi-finish 313135629 52896352 260239277 180241871 1387287 166368992
ed goods 9.01 1.04 7.97 5.55 85.93 9.62
Subcontract
ing 59499665.0 - 59499665.0 167869374. - 167869374.processing 8 8 32 32
materials
Total 253748168 11233555 242514612 318612466 5936920 312675546
76.2783.9492.3366.1520.2445.91
[Note] At the end of the period the carrying amount of inventories subject to restriction is nil.
(2). Data resources identified as inventory
□适用√不适用
(3). Provision for decline in value of inventories and provision for impairment of contract
performance cost
√适用□不适用
Unit: Yuan Currency: RMB
Increased amount in Amount reduced in
Beginning this period this periodItem balance Closing balance
Accrual othe Transfer back other or write-off r
Raw materials 293925021.8
4692549697.29-
562162031.1
5-424312687.98
Work-in-progre
ss
Finished goods 161038212.4 219608124.66 - 210566962.27 1 - 170079374.92
Reusable
materials -
Consumptive
biological assets
Contract
performance
cost
Semi-finished 138728785.9 589503955.90 - 199269220.7 - 528963521.04
223 / 3522024 Annual Report 224
goods 3 9
Issued goods
Total 593692020.2 1501661777.8 971998214.1 1123355583.9
45-5-4
Reasons for reversal of provision for decline in value of inventories in the current period
√适用□不适用
Category Specific basis for determining net realizable Reasons for reversal of
value provision for decline in value
of inventories and
impairment of contract
performance cost
Raw materials The estimated selling price of the product The products produced have
produced minus the estimated cost to been sold in the current
completion estimated selling expenses and period
related custom duty
Finished goods Estimated selling price minus estimated Sold in current period
selling expenses and related custom duty
Semi-finished The estimated selling price of the product The products produced have
goods produced minus the estimated cost to been sold in the current
completion estimated selling expenses and period
related custom duty
Provision for Inventory Impairment on portfolio basis
□适用√不适用
Standards for provision of Inventory Impairment on portfolio basis
□适用√不适用
(4). Capitalization of borrowing costs amount in closing balance of inventories and its calculation
standard and basis
□适用√不适用
(5). Contract performance cost amortization amount
□适用√不适用
224 / 3522024 Annual Report 225
Other notes:
□适用√不适用
11. Assets held for sale
□适用√不适用
12. Non-current assets due within one year
□适用√不适用
Debt investment due within one year
□适用√不适用
Other debt investments due within one year
□适用√不适用
Notes for non-current assets due within one year:
None
13. Other current assets
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Costs of obtaining a contract
Receivables of returned goods
VAT carry forward 5836821035.13 3646315465.30
VAT input tax pending for
verification 361062.62 83407970.83
Prepaid enterprise income tax 824555914.01 1128660218.80
Receivable settlement guarantee 10049607.61 10049604.49
Receivable of monetary security
deposits 880983876.84 1773531217.52
Receivable of pledged security
deposits 90585040.00 27533400.00
Treasury bond reverse repurchase - 125000000.00
Others
Total 7643356536.21 6794497876.94
Other notes:
None
14. Debts Investment
(1). Information of debts investment
□适用√不适用
Changes in the provision for impairment of debt investment in the current period:
□适用√不适用
225 / 3522024 Annual Report 226
(2). Important debts investment at the end of the period
□适用√不适用
(3). Information of provision for impairment
□适用√不适用
Basis for dividing each stage and proportion of bad debt provision:
None
Note on the significant changes in debt investment book balance that have changed the loss provision
in the current period:
□适用√不适用
Basis for accruing bad debt provision for the current period and assessing whether the credit risk of
financial instruments has increased significantly:
□适用√不适用
(4). Debts investment written-off during the year
□适用√不适用
The important write-off of debt investment:
□适用√不适用
Notes for write-off of debt investment:
□适用√不适用
Other notes:
□适用√不适用
15. Other debt investments
(1). Information of other debt investments
□适用√不适用
Changes in impairment provision for other debt investments in this period:
□适用√不适用
(2). Important other debt investments at the end of the period
□适用√不适用
(3). Information of provision for impairment
□适用√不适用
Basis for division of each stage and the proportion of impairment provision:
None
226 / 3522024 Annual Report 227
Note on the significant changes in other investment book balance that have changed the loss provision
in the current period:
□适用√不适用
Basis for accruing bad debt provision for the current period and assessing whether the credit risk of
financial instruments has increased significantly
□适用√不适用
(4). Other debt investments written off during the year
□适用√不适用
The important write-off of other investment:
□适用√不适用
Notes for write-off of other debt investment:
□适用√不适用
Other notes:
□适用√不适用
16. Long-term receivables
(1). Information of long-term receivables
□适用√不适用
(2). Disclosure of provision for bad debts
□适用√不适用
Provision for bad debts on individual basis:
□适用√不适用
Explanation on provision for bad debts on individual basis:
□适用√不适用
Provision for bad debts on portfolio basis:
□适用√不适用
(3). Information of provision for impairment
□适用√不适用
Basis for dividing each stage and proportion of bad debt provision:
None
Note on the significant changes in debt investment book balance that have changed the loss provision
in the current period:
□适用√不适用
227 / 3522024 Annual Report 228
Basis for accruing bad debt provision for the current period and assessing whether the credit risk of
financial instruments has increased significantly:
□适用√不适用
(4). Provision for bad debts
□适用√不适用
The significant amount of recovery or reversal of provision for bad debts:
□适用√不适用
Other notes:
None
(5). Long-term receivables written-off during the year
□适用√不适用
The important write-off of Long-term receivables:
□适用√不适用
Notes for write-off of Long-term receivables:
□适用√不适用
Other notes:
□适用√不适用
17. Long-term equity investment
(1). Long-term equity investment
√适用□不适用
Unit: Yuan Currency: RMB
Movement in the year
Anno ClosiInvest unce ngment Adjust Cha d balan
Addit Decr income ment nge distri Provi ce of
Invest Beginni ional ease /lossng in recogni of s of butio
sion Ot Closing provi
ee forBalance inves other oth n of her balance sion
tmen inves zed impai for
t tmen under
compre er cash
hensive equ divid rmen
s
impai
t the
equity income ity end
t rmen
method or
t
profit
I. I. Joint ventures
Subtot
al
II. Associates
Wuxi 63685 10073 73758
Xishan 3929.2 - - 1553.6 - - - - - 5482.9 -
228 / 3522024 Annual Report 229
g Bank 8 2 0
Co.Ltd.Chenj
u
(Suzho
u)
Scienc
e and 91464 -86390 82825
Techn 24.57 - - 2.82 - - - - - 21.75 -
ology
Devel
opme
nt Co.Ltd.Subtot 64600 74586
al 0353.8 - -
99867
5650.80
-----8004.6-
5
64600
Total 0353.8 - - 99867
74586
5650.80
-----8004.6-
5
(2). Impairment test of long-term equity investment
□适用√不适用
Other notes:
At the end of the period there was no obvious sign of impairment of long-term equity investment
so no Provision for impairment.
18. Other equity instruments investment
(1). Information of other equity instruments investment
□适用√不适用
(2). Description of the circumstances of derecognition in the current period
□适用√不适用
Other notes:
□适用√不适用
229 / 3522024 Annual Report 230
19. Other non-current financial assets
□适用√不适用
Other notes:
□适用√不适用
20. Investment properties
Investment properties measurement model
(1). Investment properties measured at cost model
Unit: Yuan Currency: RMB
Item Housing and buildings Land use rights Total
I. Book value
1.Beginning balance 219213630.74 34797725.56 254011356.30
2.Increase 28361500.26 - 28361500.26
(1)Purchase - - -
(2) Transfer from fixed assets 28361500.26 - 28361500.26
(3)Addition by business combination
3.Decrease
(1)Disposal
(2)Other decrease
4.Closing balance 247575131.00 34797725.56 282372856.56
II. Accumulated depreciation and amortisation
1.Beginning balance 54092527.48 7513338.25 61605865.73
2.Increase 12439189.95 695954.71 13135144.66
(1)Amortisation for the year 9561779.69 695954.71 10257734.40
(2)Transfer from fixed assets 2877410.26 - 2877410.26
3.Decrease
(1)Disposal
(2)Other decrease
4.Closing balance 66531717.43 8209292.96 74741010.39
III. Provision for impairment
230 / 3522024 Annual Report 231
1.Beginning balance
2.Increase
(1) Provision
3.Decrease
(1)Disposal
(2)Other decrease
4.Closing balance
IV. Carrying amount
1.Carrying value at year end 181043413.57 26588432.60 207631846.17
2.Carrying value at beginning of year 165121103.26 27284387.31 192405490.57
(2). Information of investment properties without property certificate
□适用√不适用
(3). Impairment test of investment real estate using cost measurement model
□适用√不适用
Other notes:
□适用√不适用
21. Fixed assets
Presented by item
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Fixed assets 147008441268.04 129987346509.40
Fixed assets for disposal - -
Total 147008441268.04 129987346509.40
Other notes:
231 / 3522024 Annual Report 232
□适用√不适用
Fixed assets
(1). Details Fixed assets
√适用□不适用
Unit: Yuan Currency: RMB
Item Houses and buildings Special equipment Transportationtools General equipment Ships Total
I. Book value:
1.Beginning balance 36978396392.71 140339467614.89 517719104.73 848282829.82 559634194.27 179243500136.42
2.Increase 6577259572.33 20314808647.14 28401549.53 181468949.17 - 27101938718.17
(1)Purchase - 23591758.10 28355768.10 78227867.85 - 130175394.05
(2)Transfer from
construction in progress 6577259572.33 20291216889.04 - 102936176.53 - 26971412637.90
(3)Addition by
business combination
(4)Others - - 45781.43 304904.79 - 350686.22
3.Decrease 28361500.26 60217072.61 23605041.75 8040172.89 - 120223787.51
(1)Disposal or
scrap - 60217072.61 23605041.75 8040172.89 - 91862287.25
(2)Others 28361500.26 - - - - 28361500.26
4.Closing balance 43527294464.78 160594059189.42 522515612.51 1021711606.10 559634194.27 206225215067.08
II. Accumulated depreciation
1.Beginning balance 8426835322.21 39673760452.36 383782115.28 619774350.54 152001386.63 49256153627.02
2.Increase 1637602150.80 8226421447.64 52274313.45 110872402.24 17194241.16 10044364555.29
(1) Provision 1637602150.80 8226421447.64 52254572.26 110692989.76 17194241.16 10044165401.62
2)Business
combination - - 19741.19 179412.48 - 199153.67
3.Decrease 2877410.26 53431996.81 21811333.55 5623642.65 - 83744383.27
(1)Disposal or
scrap - 53431996.81 21811333.55 5623642.65 - 80866973.01
(2)Others 2877410.26 - - - - 2877410.26
232 / 3522024 Annual Report 233
4.Closing balance 10061560062.75 47846749903.19 414245095.18 725023110.13 169195627.79 59216773799.04
III. Provision for impairment
1.Beginning balance
2.Increase
(1) Provision
3.Decrease
(1)Disposal or
scrap
4.Closing balance
IV. Carrying amount
1.Carrying value at
year end 33465734402.03 112747309286.23 108270517.33 296688495.97 390438566.48 147008441268.04
2.Carrying value at
beginning of year 28551561070.50 100665707162.53 133936989.45 228508479.28 407632807.64 129987346509.40
233 / 3522024 Annual Report 234
(2). Fixed assets with temporary idle
□适用√不适用
(3). Fixed assets held under Operating lease rent-out
□适用√不适用
(4). Fixed assets without property certificate
√适用□不适用
Unit: Yuan Currency: RMB
Item Carrying amount Reasons for not completing thecertificate of title
Houses and buildings 5390421857.40 Still in process
(5). Impairment test of fixed assets
□适用√不适用
Other notes:
□适用√不适用
Fixed assets disposal
□适用√不适用
22. Construction in progress
Presented by item
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Construction in progress 37725460975.09 47030792783.72
Construction materials 668370300.18 1793344903.73
Total 38393831275.27 48824137687.45
Other notes:
□适用√不适用
234 / 3522024 Annual Report 235
Construction in progress
(1). Information of construction in progress
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Item Provision
Book balance for Book balance Provision for Book Provision for
impairment impairment balance impairment
Annual output of 1.6 million tons of
high-performance resin and new 11587165209.77 - 11587165209.77 14273491274.08 14273491274.08
material projects
Annual output of 5 million tons of
PTA project - - - 5038408887.77 5038408887.77
Project with an annual output of
800000 tons of functional polyester 2552165674.92 - 2552165674.92 3590326402.15 3590326402.15
film and functional plastics
Annual production of 600000 tons
of functional polyester film
functional film and 3 billion square 7547919837.74 - 7547919837.74 3324025442.09 3324025442.09
meters of lithium battery
diaphragm project
New Material Industrial Park Phase
II Project 6347735625.44 - 6347735625.44 3918297921.06 3918297921.06
Other sundry projects 9690474627.22 - 9690474627.22 16886242856.57 16886242856.57
Total 37725460975.09 - 37725460975.09 47030792783.72 47030792783.72
(2). Changes in significant construction in progress
√适用□不适用
Unit: Yuan Currency: RMB
235 / 3522024 Annual Report 236
Proport
ion of Cumulativ Including: Capitaliza
Item Budg Beginning Increase Transfer to Other Closing
cumula e amount interest
tive Progres of interest capitalise tion rate Sourceet balance fixed assets decrease balance input to s % capitalisati d in the for the of fund
budget on year year (%)
(%)
Annual
output of
1.6 million Trial
tons of 19.98 producti
high-perfor 8 142734912 580615233 833427761 15820078 115871652
Self-finan
billio 74.08 2.57 1.22 5.66 09.77 108.84
on 711605573 49475583
partial .49 7.90 4.06 cing and
mance resin n conversi loans
and new on
material
projects
Annual
output of 5 11.45
million tons billio 503840888 432313827. 547072271 - - 97.86 Complet 479906628 86816455
Self-finan
n 7.77 18 4.95 ed .27 .98
4.05 cing and
of PTA loans
project
Project with
an annual
output of
800000 11.12 Trial
tons of 5 359032640 357737158. 139589788 255216567 producti 127246731 12724673 Self-finan
functional billio 2.15 49 5.72
- 4.92 44.78 onpartial .43 1.43
3.63 cing and
loans
polyester n transfer
film and
functional
plastics
Annual 12.49 332402544 422389439 754791983 Partial 147023867 11903643 Self-finan
production 4 2.09 5.65
- - 7.74 60.41 trial .31 9.55 3.36 cing and
236 / 3522024 Annual Report 237
of 600000 billio producti loans
tons of n on
functional
polyester
film
functional
film and 3
billion
square
meters of
lithium
battery
diaphragm
project
New
Material 7.868 Partial
Industrial billio 391829792 242943770 634773562 trial 181530963 12702593
Self-finan
n 1.06 4.38
- - 5.44 80.68 producti .97 2.94 4.15 cing and
Park Phase II on loans
Project
62.92
Total 5 301445499 132495354 152008982 15820078 280349863 16473137 95488139billio 27.15 18.27 11.89 5.66 47.87 / / 64.47 7.80 / /
n
237 / 3522024 Annual Report 238
(3). Provision for impairment of construction in progress
□适用√不适用
(4). Impairment test of construction in progress
□适用√不适用
Other notes:
□适用√不适用
Construction Materials
(1). Information of construction materials
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Provision
Item
Book balance for Book balance Provision for
Book Provision for
impairme impairment balance impairmentnt
Special 668109411. - 668109411. 1557731537. - 1557731537.materials 93 93 32 32
Special
equipme 260888.25 - 260888.25 235613366.41 - 235613366.41
nt
Total 668370300. - 668370300. 1793344903. - 1793344903.18 18 73 73
Other notes:
At the end of the period there were no obvious indication of impairment of construction in
progress so no provision for impairment was provided.
23. Productive biological assets
(1). Productive biological assets using cost measurement model
□适用√不适用
(2). Impairment test of productive biological assets using cost measurement model
□适用√不适用
(3). Productive biological assets using the fair value measurement model
□适用√不适用
Other notes:
□适用√不适用
238 / 3522024 Annual Report 239
24. Oil and gas assets
(1). Information of oil and gas assets:
□适用√不适用
(2). Impairment test of oil and gas assets:
□适用√不适用
Other notes:
None
25. Right-of-use assets
(1). Information of right-of-use-assets
√适用□不适用
Unit: Yuan Currency: RMB
Item Houses and buildings Ships Others Total
I. Book value
1.Beginning
balance 184198151.70 - 7106282.50 191304434.20
2.Increase 6276466.37 399397566.24 405674032.61
Leases 5121929.62 399397566.24 404519495.86
Others 1154536.75 1154536.75
3.Decrease 10203480.66 10203480.66
Disposal 10203480.66 10203480.66
4.Closing
balance 180271137.41 399397566.24 7106282.50 586774986.15
II. Accumulated depreciation
1.Beginning
balance 113816370.34 - 355314.12 114171684.46
2.Increase 37932141.03 8648160.67 177657.06 46757958.76
(1) Provision 37133274.66 8648160.67 177657.06 45959092.39
(2)Others 798866.37 798866.37
3.Decrease 10203480.66 10203480.66
(1)Disposal 10203480.66 10203480.66
4.Closing
balance 141545030.71 8648160.67 532971.18 150726162.56
III. Provision for impairment
1.Beginning
balance
2.Increase
(1) Provision
3.Decrease
(1)Disposal
4.Closing
balance
IV. Carrying amount
1.Carrying 38726106.70 390749405.57 6573311.32 436048823.59
239 / 3522024 Annual Report 240
value at year end
2.Carrying
value at beginning 70381781.36 - 6750968.38 77132749.74
of year
(2). Impairment test of right-of-use assets
□适用√不适用
Other notes:
None
26. Intangible assets
(1). Details of intangible assets
√适用□不适用
Unit: Yuan Currency: RMB
Item Land use rights Patent rights Software usagerights Total
I. Book value
1.Beginning
balance 9405563359.82 1305804506.83 184388146.09 10895756012.74
2.Increase 126723660.49 325583873.17 1953133.95 454260667.61
(1)Purchase 126723660.49 163383087.51 1939710.05 292046458.05
(2)In-house
research and
development
(3)Addition
by business
combination
(4) Transfer
from construction 158200785.66 158200785.66
in progress
(5)
Others 4000000.00 13423.90 4013423.90
3.Decrease 145680.00 99056.60 244736.60
(1)Disposal 145680.00 145680.00
(2)
Others 99056.60 99056.60
4. Ending
balance 9532141340.31 1631388380.00 186242223.44 11349771943.75
II. Accumulated amortisation
1.Beginning
balance 1160840516.43 567972599.26 132122262.97 1860935378.66
2.Increase 190757576.17 118437639.69 32470491.95 341665707.81
(1)
Provision 190757576.17 118437639.69 32461023.04 341656238.90
(2)Others 9468.91 9468.91
3.Decrease
(1)Disposal
240 / 3522024 Annual Report 241
4.Closing
balance 1351598092.60 686410238.95 164592754.92 2202601086.47
III. Provision for impairment
1.Beginning
balance
2.Increase
(1)
Provision
3.Decrease
(1)Disposal
4.Closing
balance
IV. Carrying amount
1.Carrying
value at year end 8180543247.71 944978141.05 21649468.52 9147170857.28
2.Carrying
value at beginning 8244722843.39 737831907.57 52265883.12 9034820634.08
of year
At the end of the period the intangible assets formed through the Company's internal research and
development accounted for 0% of the balance of intangible assets.
(2). Data resources recognized as intangible assets
□适用√不适用
(3). Land use rights pending for ownership certificates
□适用√不适用
(4). Impairment test of intangible assets
□适用√不适用
Other notes:
□适用√不适用
27. Goodwill
(1). Book value of goodwill
√适用□不适用
Unit: Yuan Currency: RMB
Investee or Increase Decrease
matters Beginning Formation by Formation by
formed the balance Closing balancebusiness Others business Others
goodwill combination combination
Hengli
Futures Co. 77323123.69 - - - - 77323123.69
Ltd.Total 77323123.69 - - - - 77323123.69
241 / 3522024 Annual Report 242
(2). Provision for impairment of goodwill
□适用√不适用
(3). Information about goodwill's assets group or assets group portfolio
√适用□不适用
Whether the assets group
Determination or the assets group
Item method of assets Operating segment
portfolio is consistent with
group or assets and basis the assets group or the
group portfolio assets group portfoliodetermined on previous
year
Hengli Futures Co. Hengli Futures Co. Headquarters and Yes
Ltd. Ltd. is mainly other business
engaged in futures divisions
brokerage business
and there is an
active market
which can bring
independent cash
flow and can be
identified as a
separate assets
group.Changes in asset groups or asset group portfolio:
□适用√不适用
Other notes:
□适用√不适用
(4). Determination method and basis of recoverable amount
(1) Important assumptions and basis
* Assumption of relatively stable macroeconomic environment: The value of any asset is
directly related to its macroeconomic environment. In this evaluation it is assumed that the social
industrial policy tax policy and macro environment remain relatively stable and there are no major
changes in interest rates and exchange rates so as to ensure that the evaluation conclusion has a
reasonable period of use.* Continuing operation assumption; it is assumed that the operating business of the assets group
portfolio business entity is legal and can maintain its continuous operation status in the future.* Assuming that the current and future operators of the assets group portfolio business entity
are responsible and their company management has the ability to assume their duties steadily
promote the company's development plan and maintain a good business situation.* Assuming that there are no significant changes in interest rates exchange rates tax
benchmarks tax rates and policy-related fees.* Assuming that the enterprise's business scope business model and business scale do not
undergo significant changes based on its existing management methods and management level.
242 / 3522024 Annual Report 243
The recoverable amount is determined by the net amount of fair value less disposal expenses：
√适用□不适用
Unit: Yuan Currency: RMB
Determination Basis for
Item Book value Recoverable Impairment
methods of
fair value and key determiningamount amount disposal parameter key
expenses parameters
Hengli
Futures
Co. 832390906.24 889318834.29 - Note 1 Note 1 Note 1
Ltd.Total 832390906.24 889318834.29 - / / /
Note 1:
The recoverable amount of the asset group of Hengli Futures Co. Ltd. is determined based on the fair
value estimated using the market method. Due to the difficulty in collecting complete data related to
transaction cases and the inability to understand whether there are non-fair value factors involved this
valuation is not suitable for using the transaction case comparison method. There are mature listed
companies in the futures industry in China that can be selected for analysis and comparison so the
listed company comparison method can be used.Specifically the listed company comparison method generally first selects listed companies that are in
the same industry as the assets group portfolio and that are actively traded as comparable companies
and then calculate the market value of the comparable companies based on the trading stock prices.Secondly select one or several value ratio parameters of comparable companies (usually including
profitability assets revenue and other specific parameters) as "analysis parameters" Then calculate
the Ratio relationship between the Market price value of comparable companies and the selected
analysis parameters - called the ratio multiplier (Multiples). The ratio multiplier needs to be adjusted
before being applied to the corresponding analysis parameters of the Assets group portfolio to reflect
the difference between the comparable company and the assets group portfolio. Apply the
above-mentioned adjusted ratio multiplier to the corresponding analysis parameters of the assets
group portfolio to obtain the fair value of the evaluation object. Expressed in the formula as follows:
Fair value of assets group portfolio＝Analysis Parameters × Modified Ratio Multiplier
Including: Adjusted ratio multiplier = ratio multiplier of comparable companies × comprehensive
correction factor
The recoverable amount is determined based on the present value of the expected future cash flow:
□适用√不适用
The reasons for the significant inconsistencies between the aforementioned information and the
information used in previous years' impairment tests or external information:
□适用√不适用
The reasons for the significant discrepancy between the information used in the company's previous
year's impairment test and the actual situation in the current year:
□适用√不适用
243 / 3522024 Annual Report 244
(5). Performance commitments and corresponding goodwill impairment
There is a performance commitment when forming goodwill and the reporting period or the previous
reporting period is within the performance commitment period
□适用√不适用
Other notes:
√适用□不适用
Calculation process of goodwill impairment loss:
Item Hengli Futures Co. Ltd.Carrying amount of goodwill* 77323123.69
Balance of provision for impairment of goodwill* -
Carrying amount of goodwill* ＝* -* 77323123.69
Value of goodwill attributable to minority interests not recognised* -
Goodwill that not include the value attributable to minority interests not
77323123.69
recognised * =* +*
Goodwill that not include the value attributable to minority interests not
77323123.69
recognized apportioned to each assets group*
Carrying amount of the assets group* 755067782.55
Carrying amount of the Assets group that contains the overall Goodwill
832390906.24
*=*+*
Recoverable amount of assets group or assets group portfolio* 889318834.29
Impairment loss of goodwill(* is larger than zero)* =* -* -
Impairment loss of goodwill attributable to the Company -
28. Long-term deferred expenses
√适用□不适用
Unit: Yuan Currency: RMB
Item Beginning Increase Amortization Other Closing balance
balance Decrease
Catalyst 1990510850.97 566593076.66 657713037.87 - 1899390889.76
Renovation
costs 9840113.07 62509021.92 5456679.20 - 66892455.79
Others 16739233.78 13932027.17 16403857.28 - 14267403.67
Total 2017090197.82 643034125.75 679573574.35 - 1980550749.22
Other notes:
None
244 / 3522024 Annual Report 245
29. Deferred tax assets/Deferred tax liabilities
(1). Deferred tax assets before offsetting
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Item Deductible Deferred income Deductible Deductible
temporary tax temporary temporary
differences Assets differences differences
Provision for
impairment of
assets
Unrealized
profit of internal 831361049.72 125997598.80 412690533.91 78137133.59
transactions
Deductible tax
loss
Provision for bad
debts 35029871.50 6705240.88 141521467.34 32321835.61
Provision for
decline in value 1107228099.81 275947973.40 593692020.24 148000080.83
of inventories
Changes in fair
value included in
current profit or 5203402.51 1300850.63 2236900.00 357706.00
loss (decrease)
Non-deducted
tax losses - -
Government
grants 281681962.55 57109253.01 108569721.67 17112458.25
Total 2260504386.09 467060916.72 1258710643.16 275929214.28
(2). Deferred tax liabilities before offsetting
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Item Taxable Deferred Taxable Taxable
temporary income tax temporary temporary
difference liabilities differences difference
Increase in value by
assets appraisal of
business combination
not under common
contract
Changes in fair value of
other debt investments
Changes in fair value of
245 / 3522024 Annual Report 246
other equity instrument
investments
Changes in fair value
included in current 1654500.28 248175.05 7154954.88 1073243.23
profit or loss (increase)
Initial investment cost of
long-term equity
investment calculated
by equity method is less 79415493.16 11912323.97 79415493.16 11912323.97
than the share of the
owner's equity of the
investee
Fixed assets accelerated
depreciation 165910541.75 27064991.63 175094282.97 28724901.12
Total 246980535.19 39225490.65 261664731.01 41710468.32
(3). Net amount of deferred tax assets or liabilities after offsetting
√适用□不适用
Unit: Yuan Currency: RMB
Closing offset Closing balance
Beginning
Beginning offset balance of
amount of of deferred amount of deferred
Item deferred income income taxassets or deferred income income taxtax assets and liabilities after tax assets and assets orliabilities offsetting liabilities liabilities afteroffsetting
Deferred tax assets 946549459.11 678259.80 767665496.49 395962.70
Deferred tax liabilities 946549459.11 - 767665496.49
(4). Details of unrecognized deferred tax assets
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Deductible temporary
differences
Deductible tax loss
Provision for bad debts 25454632.62 5448474.18
Provision for decline in value
of inventories 16127484.13
Changes in fair value included
in current profit or loss - 19398032.46
(decrease)
Non-deducted tax losses 714682845.15 517363979.05
Provisions
Lease contracts 747326.06 749826.22
Unrealized profit of internal
transactions 29407240.29 29407240.29
Total 786419528.25 572367552.20
246 / 3522024 Annual Report 247
(5). Deductible tax loss of unrecognized deferred income tax assets will expire in the following year
√适用□不适用
Unit: Yuan Currency: RMB
Amount in beginning
Year Amount at year end Note
of year
2024-141469.44
20259201812.428658531.46
202610231942.9911028640.97
2027210668163.70114109282.66
2028210935993.75193742534.41
2029208785316.17-
2032-189683520.11
203464859616.12-
Total 714682845.15 517363979.05 /
Other notes:
□适用√不适用
247 / 3522024 Annual Report 248
30. Other non-current assets
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Item Book balance Provision Book balance Provision for Book Provision for
for impairment balance impairment
impairment
Costs of obtaining a contract
Contract performance cost
Return cost receivable
Contract assets
Prepayment for purchase of
long-term assets 1347308592.31 - 1347308592.31 3381887915.12 3381887915.12
Unrealized gains and losses on
sale and leaseback
Futures membership
Investment 1400000.00 - 1400000.00 1400000.00 1400000.00
Total 1348708592.31 1348708592.31 3383287915.12 3383287915.12
Other notes:
None
31. Ownership or using rights of assets subject to restriction
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Item Book value Carrying amount Type of Restricted Book value Carrying amount Type of Restricted
restriction situation restriction situation
248 / 3522024 Annual Report 249
Notes
Receivable
Inventories
Including:
Data
resources
Pledge to Pledge to
Fixed assets 6318766725.98 2977144519.87 Pledge secure sale 4647436155.66 1649966499.72 Pledge secure saleand leaseback and leaseback
contracts contracts
Pledge to
obtain Pledge to
Intangible 5252851010.28 4499663682.99 Pledge financing
obtain
assets credit from 5067120570.14 4492197052.63 financing from
financial financial
institutions institutions
Including:
Data
resources
Cash and bank Pledge to Pledge to
balances obtain obtain
6282648692.94 6282648692.94 Pledge financingcredit from 5252895794.26 5252895794.26 Pledge
financing
credit from
financial financial
institution institution s
Cash and bank Security Security
balances deposits for deposits for
3792584.10 3792584.10 Pledge trading in 70269522.55 70269522.55 Pledge trading infutures and futures and
financial financial
derivatives derivatives
Cash and bank 119600000.00 119600000.00 Freezing Freezing funds
249 / 3522024 Annual Report 250
balances involved in
litigation
Pledge to Pledge to
obtain obtain
Receivables
Financing 3468255192.24 3468255192.24 Pledge
financing
credit from 2873535149.86 2873535149.86 Pledge
financing
credit from
financial financial
institutions institutions
Pledge to Pledge to
obtain obtain
Fixed assets 115049120119.69 81952932651.52 Pledge financingcredit from 108294533612.66 80505745109.76 Pledge
financing
credit from
financial financial
institutions institutions
Pledge to Pledge to
obtain obtain
Construction
in progress 20938182875.02 20938182875.02 Pledge
financing
credit from 24014095335.45 24014095335.45 Pledge
financing
credit from
financial financial
institutions institutions
Total 157313617200.25 120122620198.68 / / 150339486140.58 118978304464.23 / /
Other notes:
None
250 / 3522024 Annual Report 251
32. Short-term loans
(1). Short-term loans by category
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Pledge loans 2276660116.86 2776068898.60
Mortgage loans 1381182194.47 4684217467.66
Guaranteed loans 12890594208.74 22362489683.61
Unsecured loans 20667393324.99 10932592766.04
Discount of commercial
acceptance bills 38150720554.46 26239681665.48
Total 3675398445.32 -
Pledge loans 79041948844.84 66995050481.39
Note to short-term loans by category:
None
(2). Overdue and unpaid short-term loans
□适用√不适用
Including important short-term loans that have been overdue and not repaid are as follows:
□适用√不适用
Other notes:
□适用√不适用
33. Financial liabilities held for trading
√适用□不适用
Unit: Yuan Currency: RMB
Item Beginning balance Closing balance Specified reasonsand basis
Financial liabilities held for trading 190324330.67 88092248.88 /
Including:
Derivative financial liabilities 190324330.67 88092248.88 /
Designated as financial liabilities
at fair value through profit or loss - 415695007.98 /
Including:
Deposit precious metals 415695007.98 Risk Management
Total 190324330.67 503787256.86 /
Other notes:
□适用√不适用
34. Derivative financial liabilities
□适用√不适用
251 / 3522024 Annual Report 252
35. Notes payable
(1). Notes payable presented by item
√适用□不适用
Unit: Yuan Currency: RMB
Category Closing balance Beginning balance
Commercial acceptance
bills 2370456766.77 8134202672.24
Bank acceptance bills 469121994.86 1584564190.99
Letter of credit 8607727516.70 2283686725.30
Total 11447306278.33 12002453588.53
Bills payable overdue but still unpaid at year end is RMB 0 yuan. The reason for failure to pay is /.
36. Notes payable
(1). Accounts payable presented by item
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Within 1 year 6644449495.74 13746679951.78
1-2 years 1951836469.35 1223853715.40
2-3 years 626020068.08 176810898.80
3+ years 267351588.96 451323029.94
Total 9489657622.13 15598667595.93
(2). Significant accounts payable aging over 1 year
□适用√不适用
Other notes:
□适用√不适用
37. Advances from customers
(1). Advance from customers presented by item
□适用√不适用
(2). Significant advance from customers with aging over one year
□适用√不适用
(3). Amount and reason for significant changes in the carrying amount during the reporting period
□适用√不适用
Other notes:
□适用√不适用
252 / 3522024 Annual Report 253
38. Contract liabilities
(1). Information of contract liabilities
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Within 1 year 7178669804.98 8474131199.60
1-2 years 42840296.14 12597237.07
2-3 years 4566596.63 3887634.70
3+ years 10964770.53 11771197.56
Total 7237041468.28 8502387268.92
(2). Significant contract liabilities with aging over one year
□适用√不适用
(3). The amount and reasons for significant changes in the carrying amount during the reporting
period
□适用√不适用
Other notes:
□适用√不适用
39. Employee benefits payables
(1). List of employee benefits payable
√适用□不适用
Unit: Yuan Currency: RMB
Item Beginningbalance Increase Decrease Closing balance
I. Short-term
employee 499657479.17 5068864288.20 5079392964.06 489128803.31
benefits
II.Post-employment
benefits -Defined 980037.39 328351757.86 325001877.54 4329917.71
contribution
plans
III. Termination
benefits
IV. Others
benefits due
within one year
Total 500637516.56 5397216046.06 5404394841.60 493458721.02
(2). List of short-term employee benefits
√适用□不适用
Unit: Yuan Currency: RMB
253 / 3522024 Annual Report 254
Item Beginningbalance Increase Decrease Closing balance
I. Salaries bonus
and allowances 498890853.28 4676855632.03 4689142590.17 486603895.13
II. Staff welfare 14014.41 56321958.22 56087643.71 248328.92
III. Social
insurances 175203.09 189592475.71 188929643.79 838035.01
Including:
Medical insurance 172382.92 157651951.55 157076261.09 748073.38
Work
injury insurance 2820.17 20381276.68 20355813.40 28283.45
Maternity
insurance - 11559247.48 11497569.30 61678.18
IV. Housing fund 577408.40 112118642.12 111459310.52 1236740.00
V. Union funds
and staff - 33450928.30 33357202.24 93726.06
education
VI. Vocation leave - - - -
VII. Short-term
profit sharing plan - - - -
VIII.Compensation for
termination of - 524651.82 416573.63 108078.19
labor relations
IX. Others - - - -
Total 499657479.17 5068864288.20 5079392964.06 489128803.31
(3). List of defined contribution plans
√适用□不适用
Unit: Yuan Currency: RMB
Item Beginningbalance Increase Decrease
Closing
balance
1.Basic pension insurance 965243.13 318152401.77 314884619.20 4233025.70
2.Unemployment
insurance 14794.26 10199356.09 10117258.34 96892.01
3.Corporate annuity plan
Total 980037.39 328351757.86 325001877.54 4329917.71
Other notes:
√适用□不适用
The Company participates in the pension insurance and unemployment insurance plans
established by government agencies in accordance with the regulations. Apart from this the Company
no longer undertakes further payment obligations and the corresponding expenditures are included in
the current profit or loss or the cost of related assets when incurred.
40. Taxes payable
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
254 / 3522024 Annual Report 255
Value-added tax 121635953.21 266538160.39
Consumption tax 256162322.48 557275099.44
Business tax
Enterprise income tax 403409814.06 370596086.66
Individual income Tax
Urban maintenance and
construction tax 23855165.40 57017069.39
Property tax 49180907.09 34240076.04
Stamp duty 114648791.54 79049841.45
Land use tax 19518965.89 18747915.44
Education surcharge 10232828.41 24457717.74
Local education surcharges 6821885.63 16305145.15
Withholding individual income
Tax 12476235.24 11642729.83
Withholding value-added tax
Environmental protection tax 4579593.54 3731893.02
Total 1022522462.49 1439601734.55
Other notes:
None
41. Other payables
(1). Presented by item
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Interest payable
Dividends payable
Other payables 375249175.51 416224941.72
Total 375249175.51 416224941.72
Other notes:
□适用√不适用
(2). Interest payable
Presented by category:
□适用√不适用
Overdue significant interest payable：
□适用√不适用
Other notes:
□适用√不适用
(3). Dividends payable
Presented by category:
□适用√不适用
255 / 3522024 Annual Report 256
(4). Other payables
Other payables by nature
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Security deposits 168031729.28 141520538.30
Current accounts 182546194.70 250137634.54
Others 24671251.53 24566768.88
Total 375249175.51 416224941.72
Other significant payables aged over 1 year or overdue
□适用√不适用
Other notes:
√适用□不适用For details of other foreign currency payables please refer to the “Notes on ConsolidatedFinancial Statement Items - Items in foreign currencies”.
42. Liabilities held-for-sale
□适用√不适用
43. Non-current liabilities due within 1 year
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Long-term loans due within
one year 13847490632.39 12022605362.19
Bonds payable due within one
year - 1015294281.98
Long-term payables due within
one year 978337334.48 421574624.56
Lease liabilities due within one
year 55665568.78 38597381.39
Total 14881493535.65 13498071650.12
Other notes:
1．Long-term loans due within one year
(1) Details
Category Closing balance Beginning balance
Unsecured loans 3331466844.22 2038956504.33
Guaranteed loans 2225667823.61 2550943972.65
Mortgage loans 8290355964.56 7432704885.21
256 / 3522024 Annual Report 257
Subtotal 13847490632.39 12022605362.19
2．Bonds payable due within one year
Bond name Face value Coupon Issuance Term Issuance Beginning
(Yuan) rate(%) date amount balance
23 Hengli
Petrochemical 1000000000.00 3.53 2023/7/19 12.00 1000000000.00 1015294281.98
CP001
Continued:
Bond name Bonds Accrued Amortization Closing
Current Default
issued in interest for the of excess balance
repayment or not
this period current period discount
23 Hengli
Petrochemical - 19484229.54 521488.48 1035300000.00 -No
CP001
3．Long-term payables due within one year
Item Closing balance Beginning balance
Finance lease payables 1078890476.94 509232241.76
Less: Unrecognized financing
100553142.4687657617.20
costs
Subtotal 978337334.48 421574624.56
44. Other current liabilities
Information of other current liabilities
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Short-term bonds payable 2016752688.15 -
Payables of returned goods - -
Output VAT pending for
transfer 917896215.55 1098844994.24
Notes receivable not
derecognised - -
Payable of monetary security
deposits 3340676297.58 3575114707.32
257 / 3522024 Annual Report 258
Payable of pledged security
deposits 90585040.00 27533400.00
Futures risk reserve 20831493.78 16792003.62
Payable of Futures Investor
Protection Fund 98966.88 68751.02
Total 6386840701.94 4718353856.20
258 / 3522024 Annual Report 259
Increase and decrease of short-term bonds payable:
√适用□不适用
Unit: Yuan Currency: RMB
Wheth
Coup Amortizati er it is
Bond on Issuance Term
Beginni Interest on of This Closing a
Face value rate date (mont Issuance date
ng This issue accrued at premium repa breachname h) Balance par value and y Balance(%) ofdiscount contra
ct
2024CP0 1000000000
01.002.20
2024/7/ 12.00 1000000000 - 999056603.7 10122641. 432389.9 100961163515 .00 7 50 3 - .20 No
2024CP0 1000000000 2.15 2024/8/ 12.00 1000000000 - 999056603.7 7744623.6 339825.5 - 1007141052
No
02.0020.00771.95
Total 2000000000 / / / 2000000000 - 1998113207 17867265. 772215.4 - 2016752688.00 .00 .54 17 4 .15 /
Other notes:
□适用√不适用
259 / 3522024 Annual Report 260
45. Long-term loans
(1). Long term loans by category
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Pledge loans
Mortgage loans 59412435099.73 60400028956.12
Guaranteed loans 2903020169.24 3477610377.93
Unsecured loans 9973650609.36 6743267198.21
Total 72289105878.33 70620906532.26
Note to long term loans by category:
None
Other notes:
√适用□不适用For details of long term loans in foreign currencies please refer to the description of “Notes onConsolidated Financial Statement Items — Items in foreign currencies.
46. Bonds payable
(1). Bonds payable
□适用√不适用
(2). Specific information of bonds payable: (Excluding preferred stocks perpetual bonds and other
financial instruments classified as financial liabilities)
□适用√不适用
(3). Note to convertible corporate bonds:
□适用√不适用
Accounting treatment and judgment basis for equity transfer:
□适用√不适用
(4). Notes on other financial instruments classified as financial liabilities
Basic information on preferred shares perpetual bonds and other financial instruments issued at the
end of the period
□适用√不适用
Table of changes in financial instruments such as preferred shares and perpetual bonds issued at the
end of the period
□适用√不适用
Explanation of the basis for the classification of other financial instruments into financial liabilities:
□适用√不适用
260 / 3522024 Annual Report 261
Other notes:
□适用√不适用
47. Lease liabilities
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
1-2 years 39710593.60 24232615.59
2-3 years 31881655.32 9681451.08
Over 3 years 233203689.94 7602417.78
Total 304795938.86 41516484.45
Other notes:
None
48. Long-term payables
Presented by item
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Long-term payables 2301784112.38 2079460266.51
Special payables - 6000000.00
Total 2301784112.38 2085460266.51
Other notes:
□适用√不适用
Long-term payables
(1). Long-term payables by nature
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Finance lease payables 3528892120.62 2673505087.92
Less: Unrecognized financing costs -248770673.76 -172470196.85
Less: Long-term payables due
within one year -978337334.48 -421574624.56
Subtotal 2301784112.38 2079460266.51
Other notes:
None
261 / 3522024 Annual Report 262
Specific payables
(2). Specific payables by nature
√适用□不适用
Unit: Yuan Currency: RMB
Item Beginning Increase Decrease Closing Reason ofbalance balance formation
R&D and Funds
industrialization of appropriated
ultra-high-strength by the
creep-resistant
polyester industrial 6000000.00 - 6000000.00 -
government
need to be
fibers confirmed
after
acceptance
Total 6000000.00 - 6000000.00 - /
Other notes:
None
49. Long-term employee benefits payable
□适用√不适用
50. Provision for liabilities
□适用√不适用
51. Deferred income
Deferred income
√适用□不适用
Unit: Yuan Currency: RMB
Item Beginning balance Increase Decrease Closing balance Reason offormation
Government
grants 3949091884.36 184465183.86 282467509.33 3851089558.89 -
Total 3949091884.36 184465183.86 282467509.33 3851089558.89 /
Other notes:
□适用√不适用
52. Other non-current liabilities
□适用√不适用
53. Share capital
√适用□不适用
Unit: Yuan Currency: RMB
262 / 3522024 Annual Report 263
Increase or decrease (+ -)
Capital
Beginning balance Issuance Closing balance
New Bonus reserve
shares shares converted
Others Subtotal
to shares
Total
shares 7039099786.00 - - - - - 7039099786.00
Other notes:
None
54. Other equity instruments
(1). Basic information on preferred shares perpetual bonds and other financial instruments issued
at the end of the period
□适用√不适用
(2). Table of changes in financial instruments such as preferred shares and perpetual bonds issued at
the end of the period
□适用√不适用
Changes of other equity instruments in the current period reasons for the changes and basis for
relevant accounting treatment:
□适用√不适用
Other notes:
□适用√不适用
55. Capital reserve
√适用□不适用
Unit: Yuan Currency: RMB
Item Beginning balance Increase Decrease Closing balance
Capital
premium(Capital 18604956168.08 4514374.17 - 18609470542.25
premium)
Other capital
reserve 158630008.90 77070049.38 - 235700058.28
Total 18763586176.98 81584423.55 - 18845170600.53
Other note including the increase and decrease in the current period and the reason for the change:
In the process of increasing capital in its non-wholly owned subsidiaries the difference of
RMB4514374.17 between the investment cost and the equity share of the investee should be
included in the capital reserve. For details please refer to the note "Equity in other entities -
transactions in which the equity share in subsidiaries changes and the subsidiaries are still controlled".In this period due to the recognition of share payment expenses in the employee stock ownership plan
the company increased the capital reserve by RMB 77070049.38.
263 / 3522024 Annual Report 264
56. Treasury stock
□适用√不适用
264 / 3522024 Annual Report 265
57. Other comprehensive income
√适用□不适用
Unit: Yuan Currency: RMB
Movement during the period
Less: Included
in other
Less: comprehensive Less: Amount Amount
Item Beginning Amount before transferred to income in the attributable to attributable toBalance Closing balance
tax profit or loss in previous period
Income parent minority
current year and transferred
tax
expenses company after interests afterto retained tax tax
earnings in the
current period
I. Other
comprehensive
income not
reclassified into
profit or loss
subsequently
Including:
Changes in
amount on
remeasurement
of defined
benefit plan
Other
comprehensive
income not
reclassified to
profit or loss
under equity
265 / 3522024 Annual Report 266
method
Changes in fair
value of other
equity
instrument
investments
Changes in the
fair value of the
enterprise’s own
credit risk
II. Other
comprehensive
income that will
be reclassified -9624653.08 -16756867.96 - - - -16756867.96 - -26381521.04
into profit or loss
subsequently
Including:
Other
comprehensive
income that will
be transferred to
profit or loss
under equity
method
Changes in fair
value of other
debt investments
Reclassification
of financial assets
recognized in
other
comprehensive
income
266 / 3522024 Annual Report 267
Provision for
credit loss of
other debt
investments
Cash flows
hedge reserve -47810353.28 -57170401.70 - - - -57170401.70 - -104980754.98
Translation
difference of
foreign currency 38185700.20 40413533.74 - - - 40413533.74 - 78599233.94
financial
statements
Total other
comprehensive -9624653.08 -16756867.96 -16756867.96 - -26381521.04
income
Other notes including the adjustment of the initial recognition amount of the hedged item for the effective part of the cash flow hedging profit or loss:
None
267 / 3522024 Annual Report 268
58. Special reserve
√适用□不适用
Unit: Yuan Currency: RMB
Item Beginning balance Increase Decrease Closing balance
Safety
production fee 109358123.52 392359242.80 222473921.27 279243445.05
Total 109358123.52 392359242.80 222473921.27 279243445.05
Other notes including the increase and decrease in the current period and the reason for the change:
None
59. Surplus reserve
√适用□不适用
Unit: Yuan Currency: RMB
Item Beginning balance Increase Decrease Closing balance
Statutory
surplus reserve 995318771.37 92072345.20 - 1087391116.57
Discretionary
surplus reserve
Reserve funds
Enterprise
expansion fund
Others
Total 995318771.37 92072345.20 1087391116.57
Note including the increase and decrease in the current period and the reason for the change:
The Company appropriates the statutory surplus reserve at 10% of its net profit in accordance with the
“Company Law” and the Company's articles of association. If the accumulated amount of the statutory
surplus reserve reaches more than 50% of the Company's registered capital the appropriation will
cease.
60. Undistributed profit
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Closing balance of prior year 33094662821.91 26279812029.77
Add: adjustments on beginning
balance of undistributed profits
Beginning balance after adjustment 33094662821.91 26279812029.77
Add: Net profit attributable to
parent company for the current year 7043568223.60 6904603862.76
Less: Appropriation of statutory
surplus reserve 92072345.20 89753070.62
Appropriation of discretionary
surplus reserve
Appropriation of general risk
reserve
Appropriation for dividends to
ordinary shares 3871504882.30 -
268 / 3522024 Annual Report 269
Dividend to ordinary shares
converted to share capital
Closing balance of undistributed
profits 36174653818.01 33094662821.91
Adjustment of undistributed profits at the beginning of the period:
1.Due to the retroactive adjustment of the "Accounting Standards for Business Enterprises" and its
related new regulations the Undistributed profits at the beginning of the period was affected RMB0.
2.Due to changes in accounting policies the undistributed profit at the beginning of the period was
affected RMB 0.
3. Due to the correction of major accounting errors the undistributed profit at the beginning of the
period was affected RMB 0.
4.Changes in the scope of consolidation under common control affecting the undistributed profit at
the beginning of the period RMB 0.
5.Total impact of other adjustments on undistributed profit at the beginning of the period RMB 0.
61. Operating income and operating cost
(1). Operating income and operating cost
√适用□不适用
Unit: Yuan Currency: RMB
Current year Prior year
Item
Revenue Cost Revenue Cost
Primary
operations 234097350737.63 211487603931.55 233199632798.64 207605430263.55
Other
operations 2175925740.29 1495727973.39 1591039597.24 778421663.81
Total 236273276477.92 212983331904.94 234790672395.88 208383851927.36
(2). Information of operating income and operating cost
√适用□不适用
Unit: Yuan Currency: RMB
Contract Current Issue total
Classification Operating income Operating costs Operating income Operating costs
By Industry
Petrochemical
Industry 218027864307.20 195625658783.81 218027864307.20 195625658783.81
Other
Industries 18245412170.72 17357673121.13 18245412170.72 17357673121.13
By Product
Refining
products 108139408676.87 93941172984.95 108139408676.87 93941172984.95
PTA 68122134694.21 65810037790.76 68122134694.21 65810037790.76
Polyester
products 41766320936.12 35874448008.10 41766320936.12 35874448008.10
other 18245412170.72 17357673121.13 18245412170.72 17357673121.13
By Region
269 / 3522024 Annual Report 270
Domestic 207537749134.93 184398751268.99 207537749134.93 184398751268.99
Overseas 28735527342.99 28584580635.95 28735527342.99 28584580635.95
Total 236273276477.92 212983331904.94 236273276477.92 212983331904.94
Other notes:
□适用√不适用
(3). Note on performance obligations :
□适用√不适用
(4). Description of apportionment to remaining performance obligations:
□适用√不适用
(5). Major contract changes or major transaction price adjustments:
□适用√不适用
Other notes:
1. Relevant revenue and cost of trial sales
Product name Current year Prior year
Revenue of trial sales 22383557507.03 9277198784.14
Cost of trial sales 21825706097.04 9165652787.68
The trial operation sales in this period are the external sales of products before the fixed assets reach
the intended usable state.
62. Taxes and surcharges
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Consumption tax 4756923453.81 7677485422.84
Business tax
Urban maintenance and
construction tax 570171674.81 566340116.73
Education surcharge 244378641.96 242762663.24
Resource tax
Property tax 192096809.48 145837535.56
Land use tax 86443597.02 80522979.26
Vehicle and vessel use tax
Stamp duty 388784433.34 307783577.26
Local education surcharge 162919094.73 161841775.49
Environmental protection tax 20909186.35 17236683.01
Security for the disabled
Others 980963.38 823161.04
Total 6423607854.88 9200633914.43
Other notes:
270 / 3522024 Annual Report 271
Please refer to the explanation of “Taxation” for details of the payment standard.
63. Selling expenses
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Logistics transportation fee
Staff salaries 190501931.91 171749149.81
Travel expenses 5137633.52 4046898.34
Warehousing related costs 100572952.97 89354564.98
Business entertainment expenses 3123871.01 1920017.46
Office expenses 16611459.32 17366721.02
Other expenses 10483667.54 9035691.88
Total 326431516.27 293473043.49
Other notes:
None
64. Administrative expenses
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Staff salaries 924003824.29 833916942.06
Depreciation and amortization 679339976.89 633265117.08
Office expenses 493133816.19 424368720.48
Travel expenses 47817950.56 47548901.05
Business entertainment expenses 22256670.64 20965070.22
Other expenses 38123022.58 37303218.65
Total 2204675261.15 1997367969.54
Other notes:
None
65. Research and development expenses
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Staff salaries 527568467.52 426960232.93
Direct materials 816211871.79 668829148.62
Fuel and power 174869258.49 136857584.58
Depreciation and amortization 149429684.00 103301638.38
Others 34804952.10 35079881.83
Total 1702884233.90 1371028486.34
Other notes:
None
66. Financial expenses
√适用□不适用
271 / 3522024 Annual Report 272
Unit: Yuan Currency: RMB
Item Current year Prior year
Interest expenses 5856857050.44 5836304435.57
Including: Interest expenses on lease
liabilities 11109653.15 4137699.03
Less: Interest capitalized -1512622465.05 -1264460002.56
Less: Interest income -373603744.54 -468581267.39
Less: Fiscal interest discount -4347712.06
Net exchange gain or loss 1043224117.17 976349386.10
Handling fees and others 219779150.23 289499031.16
Total 5233634108.25 5364763870.82
Other notes:
None
67. Other income
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Government grants received in
current period 1775850371.26 630488011.59
Amortization of deferred
income 282467509.33 302860322.98
Receive Tax Withholding Fee 2118968.08 3295205.93
Tax reduction and exemption 292990052.71 78985705.21
Total 2353426901.38 1015629245.71
Other notes:
None
68. Investment income
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Income from long-term equity
investment by equity method 99867650.80 76784860.69
Gain from disposal of long-term equity
investment
Investment income of financial assets
held for trading during the holding
period
Investment income of other equity
investment instruments during the
holding period
Interest income from debts investment
during the holding period
Interest income from other debt
investments during the holding period
Gain from disposal of Financial assets
held for trading -38855981.17 61342743.03
272 / 3522024 Annual Report 273
Investment income from disposal of
other equity instruments investment
Gains from disposal of debts investment
Gain from disposal of other debt
investments
Gains from debt restructuring
Gains from disposal of receivables
financing -198209515.26 -174694586.97
Total -137197845.63 -36566983.25
Other notes:
None
69. Gain from net exposure of hedging
□适用√不适用
70. Gains from changes in fair value
√适用□不适用
Unit: Yuan Currency: RMB
Source of gains from changes in fair
value Current year Prior year
Financial assets held for trading 418144676.68 558832667.08
Including: Gains from changes
in fair value arising from derivative 418141728.90 559183971.69
financial instruments
Gains from changes in fair
value of non-derivative financial 2947.78 -351304.61
instruments
Financial liabilities held for trading -93141461.39 -188282293.17
Total 325003215.29 370550373.91
Other notes:
None
71. Credit impairment loss
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Bad debts of notes receivable -1505330.76
Bad debts of accounts receivable -5696587.35 -1136866.40
Bad debts of other receivables -11415075.75 -106917478.88
Impairment loss of debts investment
Impairment loss of other debt
investments
Bad debt of long-term receivables
Impairment losses related to financial
guarantees
Total -18616993.86 -108054345.28
Other notes:
273 / 3522024 Annual Report 274
None
72. Assets impairment loss
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
I. Bad debt loss
II. Impairment loss on decline in
value of inventories and contract -1501661777.85 -593692020.24
performance cost
III. Impairment loss of long-term
equity investment
IV. Impairment loss of investment
properties
V. Impairment loss of fixed assets
VI. Impairment loss of construction
materials
VII. Impairment loss of construction
in progress
VIII. Impairment loss of productive
biological assets
IX. Impairment loss of oil and gas
assets
X. Impairment loss of intangible
assets
XI. Impairment loss of goodwill
XII. Others
Total -1501661777.85 -593692020.24
Other notes:
None
73. Gains from disposal of assets
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Gains from disposal of
non-current assets not classified 2538670.78 -3063798.81
as held for sale
Including: Fixed assets 2538670.78 -869904.40
Right-of-use assets -111362.80
Intangible assets -2082531.61
Total 2538670.78 -3063798.81
Other notes:
None
74. Non-operating income
Information of non-operating income
√适用□不适用
Unit: Yuan Currency: RMB
274 / 3522024 Annual Report 275
Amount included in
Item Current year Prior year non-recurring gains and
losses
Total gains on
disposal of 27005.69 54459.02 27005.69
non-current assets
Including: Gain
from disposal of fixed 27005.69 54459.02 27005.69
assets
Gain from
disposal of intangible
assets
Gains on barter trade
of non-monetary
assets
Accept donation
Government grants
Indemnity income 14994043.26 14739212.12 14994043.26
Carbon emissions
trading revenue 253267862.17 56603773.59 253267862.17
Initial investment cost
of the long-term
equity investment
calculated by the
equity method is less
than the share of the
owner's equity of the
investee
Others 10303941.67 8418013.15 10303941.67
Total 278592852.79 79815457.88 278592852.79
Other notes:
□适用√不适用
75. Non-operating expenses
√适用□不适用
Unit: Yuan Currency: RMB
Amount included in
Item Current year Prior year non-recurring gains and
losses
Total losses on
disposal of 653526.36 1555570.10 653526.36
non-current assets
Including: Loss on
disposal of fixed 653526.36 1555570.10 653526.36
assets
Loss on
disposal of
intangible assets
275 / 3522024 Annual Report 276
Losses on barter
trade of
non-monetary assets
External donation 2921000.00 102003000.00 2921000.00
Fines payment 399000.00
Compensation
liquidated damages 948492.64 142433.50 948492.64
Tax late fee 1345113.94 616116.01 1345113.94
Provision for
litigation losses
Others 2442570.72 1675568.66 2442570.72
Total 8310703.66 106391688.27 8310703.66
Other notes:
None
76. Income tax expenses
(1). Income tax expenses
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Current income tax 1960677756.92 1330070239.55
Deferred income tax -193898977.21 638698030.86
Total 1766778779.71 1968768270.41
(2). Reconciliation between income tax expenses and accounting profit
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year
Profits before tax 8819785662.24
Expected income tax expenses at applicable tax
rates 2204946415.56
Effect of different tax rates applied by
subsidiaries -248570432.92
Adjustment for income tax in previous years -121791288.91
Effect of non-taxable income -50650932.44
Effect of non-deductible costs expenses and
losses 166862944.23
Effect of using the deductible temporary
differences or deductible losses for which no
deferred tax asset was recognized in previous -147649940.82
period
Effect of deductible temporary differences or
deductible losses for which no deferred tax 68936740.12
asset was recognized this year
The impact of additional deduction of research
and development expenses -105322986.44
Effect of tax rates adjustment 18261.33
Income tax expenses 1766778779.71
276 / 3522024 Annual Report 277
Other notes:
□适用√不适用
77. Other comprehensive income
√适用□不适用For details of other comprehensive income please refer to the description of “Notes on ConsolidatedFinancial Statements - Other Comprehensive Income”.
78. Notes to cash flow statement
(1). Cash related to operating activities
Cash received from other operating activities
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Recover of bank security deposits 1282883169.63 2487038979.97
Interest income received 369421880.33 457661248.69
Revenue from labor services and
rental services received 205405055.62 115117600.04
Government grants income received 1954315555.12 1512686216.15
Security deposit received 41714258.66 50093354.25
Receive the emissions trading
revenue 258862613.90 60000000.00
Receive the customer’s futures
transaction reserve fund 659061922.84 757796509.61
Net amount received from others
payments and current accounts 98772195.08 56170549.33
Total 4870436651.18 5496564458.04
Note to cash received from other operating activities:
None
Cash paid for other operating activities
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Payment of security deposit to banks 2635632769.79 1282883169.62
Expenses paid in cash 998891219.96 925939345.05
Payment of security deposits 20938591.43 55930165.11
Net amount paid for others
payments and current accounts 262365979.67 208723191.68
Total 3917828560.85 2473475871.46
Note to Cash paid for other operating activities:
None
(2). Cash related to investing activities
Cash received from major investing activities
√适用□不适用
277 / 3522024 Annual Report 278
Unit: Yuan Currency: RMB
Item Current year Prior year
Receipts of the redemption of
financial products 300000000.00 910000000.00
Receipts of margin deposit for
futures contract 193958609.62 1002917428.98
Withdrawal of treasury bond reverse
repurchase investment 1116078000.00 1063238000.00
Receipts of other investments such
as bond funds 2793553429.06 1496165096.54
Total 4403590038.68 4472320525.52
Note to Cash received from other investing activities:
None
Cash paid for major investing activities
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Payment of investment in financial
products 300000000.00 855000000.00
Payment of treasury bond reverse
repurchase investment 941578000.00 1220389000.00
Payment of other investments such
as bond funds 2808926742.63 1618046706.05
Total 4050504742.63 3693435706.05
Note to Cash paid for major nvesting activities:
None
Other cash received related to investing activities
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Withdraw the bank guarantee 637616325.62 1165527839.07
Margin received for commodity
futures contracts 157428226.25 129638118.47
Net other receipts and current
accounts 4046095.37 18904666.78
Total 799090647.24 1314070624.32
Note to cash received related to investment activities:
None
Other cash paid related to investing activities
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Margin paid for commodity futures
contracts 9290460.48 242207168.35
Bank guarantee deposit paid 89200271.13 634499614.62
Other payments and net current
accounts 195623771.96 11996480.27
278 / 3522024 Annual Report 279
Total 294114503.57 888703263.24
Note to other cash paid related to investing activities:
None
(3). Cash related to financing activities
Cash received for other financing activities
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Recover of bank security deposits 3525382532.56 4118655079.75
Other cash received related to
financing activities 417368743.21
Received short-term bond issuance
funds 1998113207.54
Recover security deposits of financing
leases 23250000.00
Received financing lease payments 1200000000.00 3520000000.00
Net amount of cash received from the
sale of treasury shares
Total 7140864483.31 7661905079.75
Note to Cash received for other financing activities:
None
Cash paid for other financing activities
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Payment of security deposit to banks 3584113820.12 3525382532.58
Payment related to leases 656283317.52 2234645253.91
Cash paid for other financing
activities 9940.50 25211778.44
Total 4240407078.14 5785239564.93
Note to Cash paid for other financing activities:
None
279 / 3522024 Annual Report 280
Changes in liabilities arising from financing activities
√适用□不适用
Unit: Yuan Currency: RMB
Increase Decrease
Item Beginning balance Closing balance
Cash changes Non-cash changes Cash changes Non-cash changes
Bank loans 149638562375.84 115704136828.87 11412639902.18 105883784340.08 5693009411.25 165178545355.56
Other payables
- dividends - 3871528884.70 3871528884.70 - -
payable
Bonds payable
(including
those within 1015294281.98 1998113207.54 36929586.96 1035300000.00 -1715611.67 2016752688.15
one year)
Lease liabilities
(including
those within 80113865.84 - 458668514.78 133207608.67 45113264.32 360461507.63
one year)
[Note]
Long-term
payables
(including 2501034891.07 1200000000.00 517761291.88 510281144.65 428393591.44 3280121446.86
those within
one year)
Trading
financial - 417368743.21 361902.05 - 2035637.28 415695007.98
liabilities
Total 153235005414.73 119319618779.62 16297890082.55 111434101978.10 6166836292.62 171251576006.18
[Note] The VAT related to the payment of rental is RMB 12794564.20.
280 / 3522024 Annual Report 281
(4). Notes on presenting cash flow on a net basis
□适用√不适用
(5). Significant activities and financial impacts that do not involve current cash receipts and
payments but affect the financial status of the enterprise or may affect the cash flow of the
enterprise in the future
√适用□不适用
Item Current year Prior year
Bill endorsement transfer for
payment of goods 2845044201.90 3105895310.18
79. Supplement to cash flow statement
(1). Supplement to cash flow statement
√适用□不适用
Unit: Yuan Currency: RMB
Supplement information Current year Prior year
1．Reconciliation of net profit to cash flow from operating activities:
Net profit 7053006882.53 6904463936.78
Add: Provision for impairment of
assets 1501661777.85 593692020.24
Credit impairment loss 18616993.86 108054345.28
Depreciation of fixed assets
depletion of oil and gas assets and
depreciation of productive biological 10028260408.64 8825594625.40
assets
Amortization of right-of-use assets 45959092.39 32918601.09
Amortization of intangible assets 284623661.29 254303592.07
Amortization of long-term deferred
expenses 679573574.35 617798491.85
Losses on disposal of fixed assets
intangible assets and other long-term -2538670.78 3063798.81
assets (Gain as in “-”)
Loss on retirement of fixed assets
(Gain as in “-”) 626520.67 1501111.08
Losses on changes in fair value (Gain
as in “-”) -325003215.29 -370550373.91
Financial expenses (Gain as in “-”) 4504905602.14 4640958566.54
Investment losses (Gain as in “-”) -61011669.63 -138127603.72
Decrease in deferred tax assets
(Increase as in “-”) -191413999.54 615902069.48
Increase in deferred tax liabilities
(Decrease as in “-”) -2484977.67 22795961.38
Decrease in inventories (Increase as
in “-”) 5514431575.73 5972116203.83
Decrease in operating receivables -4501019325.87 -366059086.40
281 / 3522024 Annual Report 282
(Increase as in “-”)
Increase in operating payables
(Decrease as in “-”) -2059778395.17 -4369558472.13
Others 244149420.43 186922341.30
Net cash flows from operating
activities 22732565255.93 23535790128.97
2．Significant investment or finance activities not involving cash:
Conversion of debt into capital
Convertible bonds mature within one
year
Right-of-use assets formed by leasing 404519495.86 24494067.04
3．Net increase / (decrease) in cash and cash equivalents:
Cash and bank balance as at end of
year 24546461064.45 15025322771.34
Less: cash and bank balance at
beginning of year 15025322771.34 20323703829.39
Add: cash equivalents at end of year
Less: cash equivalents at beginning
of year
Net increase in cash and cash
equivalents 9521138293.11 -5298381058.05
(2). Net cash paid for acquisition of subsidiaries during the year
□适用√不适用
(3). Net cash received from disposal of subsidiaries during the year
□适用√不适用
(4). Details of cash and cash equivalents
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
I. Cash 24546461064.45 15025322771.34
Including: Cash on hand 423193.13 609377.49
Cash at bank readily available
for payment 21321198101.26 12956437868.43
Other monetary fund readily
available for payment 3224839770.06 2068275525.42
Cash at central bank available
on demand
Deposits with banks and other
financial institutions
Interbank lending
II. Cash equivalents
Including: bonds investment
mature within 3 months
III. Cash and cash equivalents as at
closing balance 24546461064.45 15025322771.34
Including: Restricted cash and cash
282 / 3522024 Annual Report 283
equivalents held by the Company or
subsidiaries of the Group
(5). Situation where the using rights of cash and bank balances subject to restriction is still listed as
cash and cash equivalents
□适用√不适用
(6). Monetary funds not classified as cash and cash equivalents
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year Reason of restriction
Loan guarantee
deposit 3584113820.12 3525382532.57 Not to be used casually
Bank acceptance
deposit 662215665.31 296007837.30 Not to be used casually
Letter of credit
deposit 2034422105.51 948463593.21 Not to be used casually
Bond guarantee 1897102.00 2157102.00 Not to be used casually
Forward foreign
exchange margin Not to be used casually
Futures trading
restricted margin 3792584.10 70269522.55 Not to be used casually
Restricted time
deposit certificate 480884729.18 Not to be used casually
Other restricted bank
deposits 119600000.00 Not to be used casually
Unexpired interest
receivable 3738414.40 951060.99 Not to be used casually
Total 6290179691.44 5443716377.80 /
(7). Supplier financing arrangements
1. Terms and conditions of supplier financing arrangements
The Company participates in financing arrangements between suppliers and financial institutions.The primary economic consideration for participating in these arrangements is to provide cash flow
assistance to suppliers rather than to improve the Company's working capital. Under these
arrangements the Company's payment timing remains unchanged but the Company makes
unconditional payments to financial institutions upon maturity as agreed. Economically there is no
substantial change to the Company's cash flows while legally the Company's liabilities to suppliers are
replaced with liabilities to financial institutions. Accordingly the Company derecognizes the notes
payable under such arrangements and recognizes an equivalent amount of short-term borrowings from
financial institutions.In the supplier financing arrangements the Company does not change its payment timing (which
remains the same as the maturity date of the notes payable). In accordance with the principle of
substance over form and to enable financial statement users to better understand the financial
statements the Company treats funds obtained in advance by suppliers under supplier financing
arrangements as being transferred to suppliers by financial institutions acting as the Company's agents
and accordingly recognizes cash inflows from financing activities and cash outflows from operating
activities.
283 / 3522024 Annual Report 284
2. Presentation of financial liabilities from supplier financing arrangements in the balance sheet
End of period
Item
Book value
Short-term loans 3675398445.32
3. Payment due dates for financial liabilities under supplier financing arrangements
End of period
Item Liabilities under supplier Comparable accounts payable
financing arrangements not subject to supplierfinancing arrangements
Notes Payable 6-12 months from receipt of 6-12 months from receipt ofinvoice invoice
Short-term loans 6-12 months from receipt of 6-12 months from receipt ofinvoice invoice
4. Non-cash changes in carrying amounts of financial liabilities from supplier financing arrangements
during the current period
The increase or decrease in the Company's financial liabilities under supplier financing
arrangements during the current period did not include the impact of business combinations and
exchange rate changes.Other notes:
□适用√不适用
80. Notes to items in the statement of changes in owner's equity
Explain the "other" items and the adjustment amount for the adjustment of the balance at the end of
the previous year:
□适用√不适用
81. Items in foreign currencies
(1). Items in foreign currencies
√适用□不适用
Unit: Yuan
Item Closing balance in
Converted into RMB
foreign currency Conversion rate at year endbalance
Cash and bank balances -
Including: US Dollar 836435397.69 7.1884 6012632212.75
Euro 4063240.41 7.5257 30578728.35
Hong Kong Dollar 9585542.73 0.9260 8876212.57
Singapore Dollar 4685714.50 5.3214 24934561.14
Japanese Yen 3576.85 0.0462 165.25
Franc 0.09 7.9977 0.72
British pounds 72.21 9.0765 655.41
284 / 3522024 Annual Report 285
Korean won 1432.72 0.0055 7.88
Accounts receivable
Including: US Dollar 38391666.34 7.1884 275974654.32
Receivables Financing
Of which: USD 341683988.64 7.1884 2456161183.94
Other receivables - - -
Including: US Dollar 20180570.06 7.1884 145066009.82
Euro 300.00 7.5257 2257.71
Korean won 6450500.00 0.0055 35477.75
Notes Payable
Of which: USD 1174920928.13 7.1884 8445801599.77
Euro 255912.00 7.5257 1925916.94
Accounts payable - - -
Including: US Dollar 92283091.71 7.1884 663367776.45
Euro 87541967.80 7.5257 658814587.07
Hong Kong Dollar 510614.00 0.9260 472828.56
Japanese Yen 2440820806.00 0.0462 112765921.24
Other accounts payable
Including: US Dollar 11119317.47 7.1884 79930101.70
Non-current liabilities due
within one year
Including: US Dollar 104210196.58 7.1884 749104577.10
Euro 4677112.54 7.5257 35198545.84
Long-term loans
Including: US Dollar 750000000.00 7.1884 5391300000.00
Euro 23385562.70 7.5257 175992729.21
Other notes:
None
(2). Explanation of overseas operating entities including for important overseas operating entities
the main overseas business location bookkeeping functional currency and selection basis
should be disclosed and the reasons for changes in bookkeeping functional currency should also
be disclosed.√适用□不适用
Name Place of Reporting Selection basis
business currency
HENGLI PETROCHEMICAL CO. LIMITED China Hong US Dollar The currency of the
Kong primary economic
environment in which
the business operates
is US Dollar
HENGLI PETROCHEMICAL Singapore US Dollar The currency of the
INTERNATIONAL PTE. LTD. primary economic
environment in which
the business operates
is US Dollar
HENGLI SHIPPING INTERNATIONAL PTE. Singapore US Dollar The currency of the
285 / 3522024 Annual Report 286
LTD. primary economic
environment in which
the business operates
is US Dollar
82. Lease
(1). As lessee
√适用□不适用
Variable lease payments not included in the measurement of lease liabilities
□适用√不适用
Simplify the processing of short-term leases or rental fees for low-value assets
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year
Short-term leases 20283122.46
Rental fees for low-value assets -
Total 20283122.46
After-sale leaseback transaction and judgment basis
√适用□不适用
In the after-sale leaseback transaction business of the company the leased property belongs to the
company at the end of the lease term and does not meet the criteria for sale. The company uses
after-sale leaseback transactions for financing which is not a common business practice for companies.Total cash outflows related to leasing 678391921.00(unit:Yuan Currency:RMB)
(2). As lessor
Operating lease as lessor
√适用□不适用
Unit: Yuan Currency: RMB
Including: Income related to
Item Rental income variable lease payments not
included in lease receipts
Houses and buildings 16579255.73 -
total 16579255.73 -
Financial leasing as a lessor
□适用√不适用
Adjustment table of undiscounted lease receipts and net lease investment
□适用√不适用
Undiscounted lease receipts in the next five years
√适用□不适用
Unit: Yuan Currency: RMB
Item Annual undiscounted lease receipts
286 / 3522024 Annual Report 287
Closing balance Closing balance
First year 19991621.12 10845440.54
Second year 3483281.16 2177766.12
Third year 725461.53 544441.53
The fourth year -
Fifth year -
Total undiscounted lease
receipts after five years -
(3). Confirm the profit or loss of financial leasing sales as a manufacturer or distributor
□适用√不适用
Other notes:
None
83. Data resources
□适用√不适用
84. Others
□适用√不适用
VIII. Research and Development Expenditures
1. Listed by nature of expenses
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Staff salaries 527568467.52 426960232.93
Direct materials 816211871.79 668829148.62
Fuel and power 174869258.49 136857584.58
Depreciation and amortization 149429684.00 103301638.38
Others 34804952.10 35079881.83
Total 1702884233.90 1371028486.34
Including: Expensed R&D expenditure 1702884233.90 1371028486.34
Capitalized R&D expenditure
Other notes:
None
2. Expenditure of research and development projects meet capitalized conditions
□适用√不适用
Important capitalized research and development projects
□适用√不适用
Provision for impairment of development expenditure
□适用√不适用
287 / 3522024 Annual Report 288
Other notes:
None
3. Important outsourcing projects in research
□适用√不适用
IX. Changes in scope of consolidation
1. Business combination not under common control
□适用√不适用
2. Business combination under common control
□适用√不适用
3. Reverse acquisition
□适用√不适用
288 / 3522024 Annual Report 289
4. Disposal of subsidiaries
Whether there are transactions or events that result in the loss of control over subsidiaries in the current period:
□适用√不适用
Other notes:
□适用√不适用
Whether there are situations that the investment in a subsidiary is disposed of through multiple transactions and control is lost in the current period:
□适用√不适用
Other notes:
□适用√不适用
5. Changes in the scope of consolidation for to other reasons
Explain the changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries liquidation of subsidiaries etc.) and
related situations:
√适用□不适用
1. Increase in scope of consolidation
Company name Mode of acquisition of Equity acquisition date Contribution amount Contribution ratio
equity
Nantong Hengli Import and New established
2024/01/12 10 million yuan 100%
Export Co. Ltd.Suzhou Hengli Jiuli Sales New established
2024/02/06 10 million yuan 100%
Co. Ltd.Suzhou Hengli Huirun New established
Import and Export Co. 2024/02/08 10 million yuan 100%
Ltd.Hengli Dalian Materials New established
2024/03/18 10 million yuan 60%
Research Institute Co.
289 / 3522024 Annual Report 290
Ltd.Hengli Petrochemical New established
Trading (Suqian) Co. 2024/04/09 10 million yuan 100%
Ltd.Hengli Fuel Oil New established
2024/06/17 10 million yuan 100%
(Guangzhou) Co. Ltd.Hengli Chemical (Dalian) New established
2024/06/20 500 million yuan 100%
Co. Ltd.Suqian Hengli Chemical New established
2024/07/10 10 million yuan 100%
Import & Export Co. Ltd.Hengli Fuel Oil New established
2024/08/22 50 million yuan 100%
(Shenzhen) Co. Ltd.Dalian Northeast Asia New established
2024/08/23 30 million yuan 100%
Energy Co. Ltd.Dalian Northeast Asia New established
Petrochemical Products 2024/08/24 30 million yuan 100%
Co. Ltd.Shanghai Jinmintai New established
2024/11/08 10 million yuan 100%
Trading Co. Ltd.
2. Decrease in scope of consolidation for other reasons
Unit: ten-thousand-yuan
Company name Disposal method Disposal date of equity Net assets on disposal date Net profit from the beginning
of the period to date of
disposal
Hengli Oilchem ? ? Pte. Ltd. Deregistered 2024/01/25 - -
Suqian Kanghui New Deregistered
Materials Co. Ltd. 2024/04/01 - -
Hengli Tongshang New Deregistered 2024/05/27 - 1.64
290 / 3522024 Annual Report 291
Energy Co. Ltd.Dalian Hengli Gaoyuan Sales Deregistered
Co. Ltd. 2024/08/12 - 0.95
Dalian Henglixing Gem Deregistered
Chemical Trading Co. Ltd. 2024/09/23 - 0.08
3. Absorption merger
There is no merger or acquisition in this period.
6. Others
□适用√不适用
291 / 3522024 Annual Report 292
X. Interests in other entities
1. Interest in subsidiaries
(1). Group structure
√适用□不适用
Unit: ten-thousand-yuan Currency: RMB
Shareholdin
Name of Place of Registeredbusines Place of Nature of
g (%) Shareholdi
subsidiary capitals registration business Dire Dire ng (%)
ct ct
Jiangsu Hengli No. 1 Hengli Business
Chemical Road Nanma combinatio
Fiber Co. Ltd. China 220800 Industrial Zone manufacturi 99.9 n not underShengze Town ng 9 0.01 common
Wujiang City control
Jiangsu Province
Jiangsu Nantong Business
Hengke Tongzhou combinatio
Advanced Binjiang New n under
Materials Co. China 278000 District (Wujie manufacturi commonLtd. Town) Hengli ng 0 100 control
Textile New
Materials
Industrial Park
Nantong No.1 Kaisha Established
Teng’an Road Binjiang by
Logistics Co. China 50 New District Transportation 0 100 investmentLtd. Tongzhou
Nantong
Jiangsu Textile New Established
Xuanda Materials by
Polymer Industrial Park investment
Material Co. China 205000 Wujie Town manufacturi 0 100
Ltd. Tongzhou ng
District Nantong
City
Jiangsu Deli No. 599 Business
Chemical Huanghe South combinatio
Fiber Co. Ltd. China 75073.87 Road Sucheng manufacturi n not underEconomic ng 0 100 common
Development control
Zone Suqian City
Hengli 02 03 04 7th Business
Futures Co. Floor No. 308 combinatio
Ltd. China 75000 Jinkang Road
Other
financial 0 100 n not underChina (Shanghai) industries commonPilot Free Trade control
Zone
Hengli 7th Floor No. Wholesale Established
Hengxin China 15000 308 Jinkang and retail 0 100 by
Industry and Road China trade investment
292 / 3522024 Annual Report 293
Shareholdin
Name of Place of Registeredbusines Place of Nature of
g (%) Shareholdi
subsidiary capitals registration business Dire Dire ng (%)
ct ct
Trade (Shanghai) Pilot
(Shanghai) Free Trade Zone
Co. Ltd. (nominal floor
actual floor 6th
floor) 01
Suzhou Business
Susheng Tanqiu Village combinatio
Thermal China 26700 Shengze Town manufacturing 0 100 n underPower Co. Wujiang common
Ltd. control
Suzhou Room 202 Established
Binglin Building 8 No. 1 by
Trading Co. Hengli Road Wholesale investment
Ltd. China 500 Nanma Industrial and retail 0 100
Zone Shengze trade
Town Wujiang
District Suzhou
Sichuan No. 10 Section Established
Hengli New 2 Lingang by
Material Co. China 10000 Avenue Lingang manufacturi investmentLtd. Area Southern ng 0 100
Sichuan Sichuan
Free Trade Zone
Hengli New No. 88 Established
Materials Gangcheng by
(Suqian) Co. China 3250 Road Yangbei manufacturi investmentLtd. Street Sucheng ng 0 100
District Suqian
City
Suzhou Hengli Room 203 Established
Chemical New Building 8 No. 1 by
Material Co. Hengli Road investment
Ltd. Nanma Industrial
China 10000 Zone Shengze Wholesale 0 100
Town Wujiang Industry
District Suzhou
City Jiangsu
Province
Kanghui New Yingkou Business
Material 167796.58 Xianrendao manufacturi 66.3 33.6 combinatioTechnology China 02 Energy and n underCo. Ltd. Chemical ng 3 7 common
Industry Zone control
Kanghui Room 201
International Building 8 No. 1 Wholesale Established
Trade China 5000 Hengli Road and retail 0 100 by
(Jiangsu) Co. Nanma Industrial trade investment
Ltd. Zone Shengze
293 / 3522024 Annual Report 294
Shareholdin
Name of Place of Registeredbusines Place of Nature of
g (%) Shareholdi
subsidiary capitals registration business Dire Dire ng (%)
ct ct
Town Wujiang
District
Complex Building
Kanghui No. 298
Dalian New Changsong Road Established
Material China 64000 Changxing Island manufacturi
Technology Economic Zone ng
0 100 by
investment
Co. Ltd. Dalian Liaoning
Province
Jiangsu Yangtze River Established
Kanghui New Delta Ecological by
Material Green Integrated investment
Technology Development
Co. Ltd. China 250000 Demonstration manufacturiZone (No. 666 ng 0 100
Fenhu Avenue
Lili Town
Wujiang District
Suzhou City)
Kanghui Hengli Textile Business
Nantong New New Materials combinatio
Material Industrial Park n under
Technology China 200000 Wujie Town manufacturing 0 100 commonCo. Ltd. Tongzhou control
District Nantong
City
Hengli Former Xingang Business
Investment Primary School combinatio
(Dalian) Co. Xingang Village n under
Ltd. China 627000 Changxing Island Industrial
Economic Zone Investment
100 0 common
control
Dalian Liaoning
Province
Hengli Former Xingang Established
Petrochemical Primary School by
(Dalian) Co. Xingang Village investment
Ltd. China 589000 Changxing Island manufacturi
Economic Zone ng
0100
Dalian Liaoning
Province
Hengli Xingang Village Business
Shipping Changxing Island combinatio
(Dalian) Co. Economic Zone n not under
Ltd. China 2000 Dalian Liaoning Transportati commonProvince on 0 100 control
(formerly
Xingang Primary
School)
294 / 3522024 Annual Report 295
Shareholdin
Name of Place of Registeredbusines Place of Nature of
g (%) Shareholdi
subsidiary capitals registration business Dire Dire ng (%)
ct ct
Hengli Flat 1906 19/F Established
Petrochemical Hong HK$10 Harbor Centre Wholesale byCo.Limited Kong million 25 Harbor Road and retail 0 100 investmentWanchai Hong trade
Kong
Shenzhen Unit 6101-03 Business
Ganghui Building A combinatio
Trading Co. Kingkey 100 n under
Ltd. Building No. Wholesale common
China 50 5016 Shennan and retail 0 100 control
East Road trade
Guiyuan Street
Luohu District
Shenzhen
Room
1514-1515 Block
A Building 1
Yangcheng Lake
International
Science and
Technology Park
Suzhou Hengli No. 116 Wholesale Established
Jiuli Sales Co. China 1000 Chengyang Road and retail 0 100 by
Ltd. Chengyang trade investment
Street Economic
Development
Zone
Xiangcheng
District Suzhou
City Jiangsu
Province
Room 1516
Block A Building
1 Yangcheng
Lake
International
Science and
Suzhou Hengli Technology Park
Huirun Import No. 116 Wholesale Established
and Export China 1000 Chengyang Road and retail 0 100 by
Co. Ltd. Chengyang trade investmentStreet Economic
Development
Zone
Xiangcheng
District Suzhou
City Jiangsu
Province
295 / 3522024 Annual Report 296
Shareholdin
Name of Place of Registered g (%)busines Place of Nature of Shareholdisubsidiary capitals registration business Dire Dire ng (%)
ct ct
Hengli No. 298 Established
Storage and Changsong Road by
Transportatio
n (Dalian) Co. China 1000
Changxing Island Transportati 0 100 investmentEconomic Zone on
Ltd Dalian Liaoning
Province
Hengli Xingang Village Business
Concrete Changxing Island combinatio
(Dalian) Co. Economic Zone n under
Ltd. China 2000 Dalian Liaoning manufacturi commonProvince ng 0 100 control
(formerly
Xingang Primary
School)
Hengli No. 26 Xiayong Established
Petrochemical Petrochemical by
(Huizhou) Co.Ltd. China 227740
Avenue Daya manufacturi
Bay Huizhou ng 0 100
investment
(Building 2
(R&D))
Hengli No. 298 Business
Petrochemical Changsong Road combinatio
(Dalian) China 1759633 Changxing Island manufacturi n underRefining Co. Economic Zone ng 100 0 common
Ltd. Dalian Liaoning control
Province
Hengli 9 STRAITS VIEW Established
Petrochemical #08-11 MARINA by
International Singapo $303568 ONE WEST Wholesale investment
Pte. Ltd. re 44 TOWER and retail 0 100
SINGAPORE(018 trade
937)
9 STRAITS VIEW Established
Hengli #08-11 MARINA by
Shipping Singapo $500000 ONE WEST Transportati investmentInternational re TOWER on 0 100
Pte. Ltd. SINGAPORE(018
937)
Room 801 Established
Building A by
Hengli Energy $150 Sunshine Wholesale investment(Hainan) Co. China million Financial Plaza and retail 0 100Ltd. Jiyang District trade
Sanya City
Hainan Province
Hengli
Petrochemical China $100
Room 205-1328 Wholesale Established
million No. 181 and retail 0 100 by(Hainan) Co. Xingyang trade investment
296 / 3522024 Annual Report 297
Shareholdin
Name of Place of Registered g (%)
subsidiary busines
Place of Nature of Shareholdi
capital
s registration business Dire Dire ng (%)
ct ct
Ltd. Avenue
Jiangdong New
District Haikou
City Hainan
Province
Room 409 Floor Established
49-01-4 MAX by
Technology Park investment
Suzhou Hengli No. 998 Pangnan
Chemical
Import & China $110
Road Wujiang Wholesale
million Economic and and retail 0 100Export Co. Technological trade
Ltd. Development
Zone Suzhou
City Jiangsu
Province
Suzhou Hengli Room 301 Established
Energy Building 5 No. by
Chemical $50 1518 Linhu Wholesale investment
Import & China million Avenue Lili and retail 0 100
Export Co. Town Wujiang trade
Ltd. District SuzhouCity
Unit 6101-03B Business
Building A combinatio
Shenzhen Kingkey 100 n under
Shengang Building No. Wholesale common
Trading Co. China 1000 5016 Shennan and retail 0 100 control
Ltd. East Road tradeGuiyuan Street
Luohu District
Shenzhen
OSBL Project Established
Hengli No. 298 by
Refining and Changsong Road investment
Chemical Changxing Island Wholesale
Products China 10000 Economic Zone and retail 0 100
Sales (Dalian) Dalian Liaoning trade
Co. Ltd. Province -Engineering
Office Building
No. 298 Established
Hengli Changsong Road Wholesale by
Aviation Oil China 1000 Changxing Island investment
Co. Ltd. Economic Zone
and retail 0 100
Dalian Liaoning trade
Province
Hengli China 10000 2302 Building Wholesale 0 100 Established
297 / 3522024 Annual Report 298
Shareholdin
Name of Place of Registered Place of Nature of g (%)busines Shareholdisubsidiary capitals registration business Dire Dire ng (%)
ct ct
Petrochemical 88 Suzhou and retail by
(Suzhou) Co. Center Plaza trade investment
Ltd. Suzhou Industrial
Park China
(Jiangsu) Pilot
Free Trade Zone
Suzhou Area
Room 2301 Established
Building 88 by
Suzhou Center investment
Hengli Energy Plaza Suzhou Wholesale
(Suzhou) Co. China 10000 Industrial Park and retail 0 100
Ltd. China (Jiangsu) trade
Pilot Free Trade
Zone Suzhou
Area
Suzhou Hengli East side of Established
Chemical Dongda Bridge Wholesale by
Polymer Co. China 10360 Lili Town and retail 0 100 investment
Ltd. Wujiang District tradeSuzhou City
Room 402-76 Established
Warehouse 1 by
Area B No. 86 investment
Hengli Dacheng 4th
(Zhoushan) Road High-tech Wholesale
Energy China 1000 Industrial Park and retail 0 100
Chemical Co. Dinghai District trade
Ltd. Zhoushan City
China (Zhejiang)
Pilot Free Trade
Zone
Henggangsha Established
Nantong Wujie Town by
Hengli Import Tongzhou Wholesale investment
and Export China 1000 District Nantong and retail 0 100
Co. Ltd. City Jiangsu trade
Province
Hengli No. 298 Established
Petrochemical Changsong Road by
(Dalian) China 457495 Changxing Island manufacturi 100 0 investment
Chemical Co. Economic Zone ng
Ltd. Dalian LiaoningProvince
Hengli Complex Building Established
Petrochemical
(Dalian) New China 751600
No. 298 manufacturi by
Changsong Road ng 0 100 investment
Materials Changxing Island
298 / 3522024 Annual Report 299
Shareholdin
Name of Place of Registered g (%)
subsidiary busines
Place of Nature of Shareholdi
capital
s registration business Dire Dire ng (%)
ct ct
Technology Economic Zone
Co. Ltd. Dalian Liaoning
Province
Dispatching
Dalian Center No. 3
Hengzhong Renshan Street Investment
Special China 6400 Changxing Island manufacturi 0 85 and
Materials Co. Economic Zone ng establishm
Ltd. Dalian Liaoning ent
Province
Dalian Room 1 27th
Northeast Floor No. 52
Asia Gangxing Road Wholesale Established
Petrochemical China 3000 Zhongshan and retail 0 100 by
Products Co. District Dalian trade investment
Ltd. City LiaoningProvince
Room 3 27th
Dalian Floor No. 52
Northeast Gangxing Road Wholesale Established
Asia Energy China 3000 Zhongshan and retail 0 100 by
Co. Ltd. District Dalian trade investmentCity Liaoning
Province
Complex Building
Hengli No. 298
Petrochemical Changsong Road Established
Utilities China 30000 Changxing Island manufacturi 0 100 by
(Dalian) Co. Economic Zone ng investment
Ltd. Dalian Liaoning
Province
Complex Building
Hengli No. 298
Chemical Changsong Road Wholesale Established
(Dalian) Co. China 50000 Changxing Island and retail 0 100 by
Ltd. Economic Zone trade investmentDalian Liaoning
Province
Suzhou No. 1 Hengli Established
Fangtuan.com Road Nanma Wholesale by
E-commerce China 500 Industrial Zone and retail 100 0 investment
Co. Ltd. Shengze Town tradeWujiang District
Room 1688 Established
Hengli Building 2 No. Wholesale by
Petrochemical China 5000 215 North and retail 100 0 investment
Sales Co. Ltd. Lianhe Road trade
Fengxian District
299 / 3522024 Annual Report 300
Shareholdin
Name of Place of Registeredbusines Place of Nature of
g (%) Shareholdi
subsidiary capitals registration business Dire Dire ng (%)
ct ct
Shanghai
Room 1902-03 Established
No. 3099 by
Hengli Chang'an Road investment
Huadong East Taihu Wholesale
Petrochemical China 5000 Ecological and retail 0 100
Sales Co. Ltd. Tourism Resort trade(Taihu New
Town) Wujiang
District Suzhou
Room 3202 Established
Luohu Business by
Center No. investment
Hengli South 2028 Shennan
China China 20000 East Road
Wholesale
Petrochemical Chengdong and retail 0 100
Sales Co. Ltd. Community trade
Dongmen Street
Luohu District
Shenzhen
Window No. 1 Established
west side of the by
approval hall of investment
Hengli North the R&D
China building Wholesale
Petrochemical China 5000 Xianrendao and retail 0 100
Sales Co. Ltd. Economic tradeDevelopment
Zone Yingkou
Liaoning
Province
Room
14002-14003
Main Tower
1401 Shipping
Yuehai Center No. 59 Business
Petrochemical Linhai Avenue Wholesale combinatio
(Shenzhen) China 20000 Nanshan Street and retail 0 100 n not under
Co. Ltd. Qianhai trade common
Shenzhen-Hong control
Kong
Cooperation
Zone Shenzhen
Hengli Oil 2303 Building Established
Sales 88 Suzhou Wholesale by
(Suzhou) Co. China 10000 Center Plaza and retail 0 100 investment
Ltd. Suzhou Industrial tradePark China
300 / 3522024 Annual Report 301
Shareholdin
Name of Place of Registered g (%)
subsidiary busines
Place of Nature of Shareholdi
capital
s registration business Dire Dire ng (%)
ct ct
(Jiangsu) Pilot
Free Trade Zone
Suzhou Area
Room 2304 Established
Building 88 by
Hengli Suzhou Center investment
Chemical Plaza Suzhou Wholesale
Sales China 10000 Industrial Park and retail 0 100
(Suzhou) Co. China (Jiangsu) trade
Ltd. Pilot Free Trade
Zone Suzhou
Area
Room 3 21F No. Established
Hengli 52 Gangxing by
Northern China 10000 Road Zhongshan
Wholesale investment
Energy Sales District Dalian and retail 0 100
Co. Ltd. City Liaoning trade
Province
Suzhou Established
Wanjingyuan by
Serviced investment
Hengli Apartments
Tongshang Building 14 No.New China 5000 777 Fengqing
Wholesale
and retail 0 100
Materials Co. Street EastTaihu Ecological tradeLtd. Tourism Resort
(Taihu New
Town) Wujiang
District Suzhou
Room 2608 Established
Building 88 by
Hengli Energy Suzhou Center investment
Import & Plaza Suzhou Wholesale
Export Co. China 5000 Industrial Park and retail 0 100
Ltd. China (Jiangsu) tradePilot Free Trade
Zone Suzhou
Area
Hengli Energy Established
Chemical Room 702-7 No. Wholesale by
(Shanghai) China 10000 719 ShenguiRoad Minhang and retail 0 100 investmentTrading Co. District Shanghai tradeLtd.Hengli Room 101 1st Wholesale EstablishedHengyuan
Supply Chain China 5000
Floor Building 1 by
No. 99 and retail 0 100 investment
(Shanghai) Shuanghui Road trade
301 / 3522024 Annual Report 302
Shareholdin
Name of Place of Registeredbusines Place of Nature of
g (%) Shareholdi
subsidiary capitals registration business Dire Dire ng (%)
ct ct
Co. Ltd. Lingang New
Area China
(Shanghai) Pilot
Free Trade Zone
Hengli New Room 502 No.Energy Wholesale
Established
(Shanghai) China 5000
99 Huangpu by
Road Hongkou and retail 0 100 investment
Co. Ltd. District Shanghai trade
Room 2507 Established
Building 88 by
Hengliyuansh Suzhou Center investment
ang Plaza Suzhou Wholesale
Technology China 1000 Industrial Park and retail 0 100
(Suzhou) Co. China (Jiangsu) trade
Ltd. Pilot Free Trade
Zone Suzhou
Area
Room 2506 Established
Building 88 by
Suzhou Hengli Suzhou Center investment
Jinshang Plaza Suzhou Wholesale
Energy China 1000 Industrial Park and retail 0 100
Technology China (Jiangsu) trade
Co. Ltd. Pilot Free Trade
Zone Suzhou
Area
Room 5 21F No. Established
Dalian Hengli 52 Gangxing by
Fine China 5000 Road Zhongshan
Wholesale
Chemicals District Dalian and retail 0 100
investment
Sales Co. Ltd. City Liaoning trade
Province
NY15 Maker Established
Service Center by
Hengli No. 118 Xingyang
Petrochemical Avenue Wholesale
investment
Sales (Haikou) China 5000 Jiangdong New and retail 0 100
Co. Ltd. District Haikou trade
City Hainan
Province
Room 805 Established
Hengli Energy Building A by
Chemical Yahuaxiangxie Wholesale investment
(Sanya) Co. China 5000 Sanyawan Road and retail 0 100
Ltd. Tianya District tradeSanya City
Hainan Province
Dalian Hengli China 1000 Room 4 21F No. Wholesale 0 100 Established
302 / 3522024 Annual Report 303
Shareholdin
Name of Place of Registered g (%)
subsidiary busines
Place of Nature of Shareholdi
capital
s registration business Dire Dire ng (%)
ct ct
Petrochemical 52 Gangxing and retail by
Sales Co. Ltd. Road Zhongshan trade investment
District Dalian
City Liaoning
Province
No. 547 Pincui Established
Dalian Hengli Road Changxing by
Gold Trading China 1000 Island Economic
Wholesale investment
Co. Ltd. Zone Dalian
and retail 0 100
Liaoning trade
Province
No. 551 Pincui Established
Dalian Hengli Road Changxing by
New Energy China 1000 Island Economic
Wholesale
and retail 0 100 investment
Sales Co. Ltd. Zone DalianLiaoning trade
Province
Room 3201 Established
Luohu Business by
Center No. investment
Hengli Energy 2028 Shennan
Chemical East Road Wholesale
(Shenzhen) China 500 Chengdong and retail 0 100
Co. Ltd. Community trade
Dongmen Street
Luohu District
Shenzhen
Room 101 Established
Nantong Building 5 by
Hengli Kaisha Village investment
Maoyuan China 1000 Wujie Town
Wholesale
Petrochemical Tongzhou and retail 0 100
Trading Co. District Nantong trade
Ltd. City Jiangsu
Province
Room 501-04 Established
Building A Taihu by
East Bank investment
Business Center
No. 4088
Suzhou Hengli Kaiping Road Wholesale
New Energy China 5000 East Taihu and retail 0 100
Sales Co. Ltd. Ecological trade
Tourism Resort
(Taihu New
Town) Wujiang
District Suzhou
City Jiangsu
303 / 3522024 Annual Report 304
Shareholdin
Name of Place of Registeredbusines Place of Nature of
g (%) Shareholdi
subsidiary capitals registration business Dire Dire ng (%)
ct ct
Province
Room 501-3 Established
Building A Taihu by
East Bank investment
Business Center
Suzhou Hengli No. 4088
Fine Chemical China 1000 Kaiping Road
Wholesale
East Taihu and retail 0 100Sales Co. Ltd. Ecological trade
Tourism Resort
(Taihu New
Town) Wujiang
District Suzhou
Room Established
1406-14057 by
14058 Main investment
Hengli Tower Shipping
Petrochemical Center No. 59Linhai Avenue WholesaleSales China 500 Nanshan Street and retail 0 100(Shenzhen)
Co. Ltd. Qianhai
trade
Shenzhen-Hong
Kong
Cooperation
Zone Shenzhen
No. 1 2nd Floor Established
Building 19 by
Yingtian investment
Luzhou Hengli Intelligent Wholesale
Energy Sales China 10000 Terminal and retail 0 100
Co. Ltd. Industrial Park trade
Luzhou
Comprehensive
Bonded Zone
Room G003 Established
Office Building 2 by
Bonded Port investment
Hengli Fuel Area Xinying Wholesale
Oil (Hainan) China 1000 Bay Yangpu and retail 0 100
Co. Ltd. Economic trade
Development
Zone Hainan
Province
Room A-522 No. Established
Shanghai 188 Yesheng Wholesale by
Hengli Fuel China 1000 Road Lingang and retail 0 100 investment
Oil Co. Ltd. New Area China trade
(Shanghai) Pilot
304 / 3522024 Annual Report 305
Shareholdin
Name of Place of Registeredbusines Place of Nature of
g (%) Shareholdi
subsidiary capitals registration business Dire Dire ng (%)
ct ct
Free Trade Zone
Room 508 Office Established
Hengli Fuel Building No. 18
Oil Wholesale
by
China 1000 Xiaohu South and retail 0 100 investment(Guangzhou) Third Road
Co. Ltd. Nansha District trade
Guangzhou
Room 1409 Established
Shenzhen by
Yantian Supply investment
Chain Smart
Warehouse
Wanwei
Hengli Fuel Shenzhen
Oil China 5000 Yantian
Wholesale
(Shenzhen) Comprehensive and retail 0 100
Co. Ltd. Bonded Zone trade
No. 15 Mingzhu
Road Donghai
Community
Yantian Street
Yantian District
Shenzhen
Room 2702 27th Established
Floor Building B by
Victoria Plaza investment
Hengli Dalian No. 52 Gangxing Scientific
Materials Road Renmin research
Research China 1000 Road Gangxing and 60 0
Institute Co. Community technical
Ltd. Zhongshan services
District Dalian
City Liaoning
Province
Room 2602 Established
Building 88 by
Hengli Suzhou Center investment
Petrochemical Plaza Suzhou Wholesale
Trading Co. China 5000 Industrial Park and retail 100 0
Ltd. China (Jiangsu) tradePilot Free Trade
Zone Suzhou
Area
Huizhou No. 26 Xiayong Established
Hengli Gold Petrochemical Wholesale by
Trading Co. China 5000 Avenue Daya and retail 0 100 investment
Ltd. Bay Huizhou trade(Building 2
305 / 3522024 Annual Report 306
Shareholdin
Name of Place of Registered g (%)
subsidiary busines
Place of Nature of Shareholdi
capital
s registration business Dire Dire ng (%)
ct ct
(R&D))
No. 26 Xiayong Established
Huizhou Petrochemical by
Hengli China 5000 Avenue Daya
Wholesale investment
Chemical Bay Huizhou and retail 0 100
Sales Co. Ltd. (Building 2 trade
(R&D))
Room 501-2606 Established
Building 88 by
Hengli Suzhou Center investment
International Plaza Suzhou Wholesale
Trading Co. China 5000 Industrial Park and retail 100 0
Ltd. China (Jiangsu) tradePilot Free Trade
Zone Suzhou
Area
Room 412 Established
Hengli Building 42 No. by
Petrochemical 430 Fumin investment
Trading China 1000 Avenue Suqian
Wholesale
Economic and and retail 0 100(Suqian) Co. trade
Ltd. TechnologicalDevelopment
Zone-FHY024
Suqian Hengli No. 88 Yangfan Established
Chemical Avenue YangbeiStreet Sucheng Wholesale
by
Import & China 1000 District Suqian and retail 0 100
investment
Export Co.Ltd. City Jiangsu
trade
Province
Reason of difference between shareholding ratio and voting right ratio in the subsidiary:
There are no subsidiaries with a shareholding ratio different from the voting right ratio.The basis for holding half or less of the voting rights but still controlling the investee and holding more
than half of the voting rights but not controlling the investee:
There were no subsidiaries in the current period that the parent company had half or less of the voting
rights and was included in the scope of the consolidated financial statements.Basis of control in structured entity included in the scope of the consolidation:
There are no important structured entity included in the scope of the consolidation in this period.Basis for determining whether a company is an agent or a principal:
None
Other notes:
In this period there was no equity investment in which the parent company had more than half of the
voting rights but failed to exercise control.
306 / 3522024 Annual Report 307
(2). Significant non-wholly-owned subsidiaries
□适用√不适用
(3). Key financial information of important non-wholly owned subsidiaries
□适用√不适用
(4). Significant restrictions on the use of corporate group assets and the settlement of corporate
group debts
√适用□不适用
There were no significant restrictions on the use of the Company’s assets and repayment of the
Company’s debts during the period.
(5). Financial support or other support provided to structured entities included in the scope of
consolidated financial statements
√适用□不适用
There was no financial or other support provided to structured entities included in the consolidated
financial statements during the period.Other notes:
□适用√不适用
2. Transactions in which the share of ownership interest in a subsidiary changes and the subsidiary
is still controlled
√适用□不适用
(1). Explanation of changes in owners' equity share of subsidiaries
√适用□不适用
Our subsidiary Hengli Petrochemical (Dalian) Advanced Materials Technology Co. Ltd. increased
its investment in its subsidiary Dalian Hengzhong Special Materials Co. Ltd. by RMB 42.70 million
pursuant to the investment agreement raising its equity interest from 65.00% to 85.00%. This
transaction involving the purchase of non-controlling interests was accounted for as an equity
transaction. After deducting the impact of non-controlling interests an additional share premium of
RMB 4514374.17 was recognized.
(2). Impact of the transaction on non-controlling interests and equity attributable to owners of the
parent
√适用□不适用
Unit: Yuan Currency: RMB
Dalian Hengzhong Special Materials Co.Ltd.Consideration transferred/received 42700000.00
--Cash and cash equivalents 42700000.00
--Fair Value of non-cash assets
307 / 3522024 Annual Report 308
Total Consideration 42700000.00
Less: Share of net assets at acquisition/disposal date 47214374.17
Difference -4514374.17
Including: Adjustment of capital reserve -4514374.17
Adjustment of surplus reserves
Adjustment of undistributed profits
Other notes:
□适用√不适用
3. Interests in joint ventures or associates
√适用□不适用
(1). Significant joint ventures or associates
□适用√不适用
(2). Significant financial information of significant joint ventures
□适用√不适用
(3). Significant financial information of significant joint associates
□适用√不适用
(4). Summarized financial information of immaterial joint ventures and associates
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance/current period Beginning balance/previous
amount period amount
Joint ventures:
Total carring amount of
investments
Proportionate Share of:
--Net profit
--Other comprehensive income
--Total comprehensive income
Associated enterprises:
Total carring amount of
investments 745826920.43 646000353.85
Proportionate Share of:
--Net profit 99826566.58 76784860.69
--Other comprehensive income
--Total comprehensive income 99826566.58 76784860.69
Other notes:
None
308 / 3522024 Annual Report 309
(5). Significant restrictions on the ability of joint ventures or associates to transfer funds to the
company
□适用√不适用
(6). Excess losses incurred by joint ventures or associates
□适用√不适用
(7). Unrecognized commitments related to investments in joint ventures
□适用√不适用
(8). Contingent liabilities related to investments in joint ventures or associates
□适用√不适用
4. Significant joint ventures
□适用√不适用
5. Interests in structured entities not included in the scope of consolidated financial statements
Explanation on structured entities not included in the scope of consolidated financial statements:
√适用□不适用
On 31 December 2024 the structured entities related to the Company but not included in the
scope of this financial statement are mainly engaged in asset management business manage client
assets and provide clients with investment management services for securities futures and other
financial products. The total assets of such structured entities on 31 December 2024 were RMB
454.8889 million.
6. Others
□适用√不适用
XI. Government Grants
1. Government grants recognized based on the receivable amount at the end of the reporting
period
□适用√不适用
Reasons for not receiving the expected amount of government grant at the expected time
□适用√不适用
2. Liability items involving government grants
√适用□不适用
Unit: Yuan Currency: RMB
Increased Amount Transferred Other
Financial Beginning grants includedin to other change Closing
Related to
stateme balance amount in non-ope income in s in this balance
assets/reve
nt items this period rating this period period
nues
309 / 3522024 Annual Report 310
income
in this
period
Deferred 39490918 18446518 - 282467509 3851089 Assetincome 84.36 3.86 .33 558.89 related
3. Government grants included in the current profit or loss
√适用□不适用
Unit: Yuan Currency: RMB
Type Current year Prior year
Related to assets 282467509.33 302860322.98
Related to revenues 1775850371.26 637235723.65
Total 2058317880.59 940096046.63
Other notes:
None
XII. Risks associated with financial instruments
1. Risks of financial instruments
√适用□不适用
The Company faces risks of various financial instruments in its daily activities mainly including
credit risk market risk and liquidity risk. The Company's main financial instruments include cash and
bank balances equity investment debt investment loans accounts receivable accounts payable etc.For details of each financial instrument please refer to the relevant items in this Note. The risks
associated with these financial instruments and the risk management policies adopted by the Company
to reduce these risks are as follows:
The board of directors is responsible for planning and establishing the Company's risk
management structure formulating the Company's risk management policies and related guidelines
and supervising the implementation of risk management measures. The Company has formulated risk
management policies to identify and analyze the risks faced by the Company. These risk management
policies specify specific risks and cover many aspects such as market risk credit risk and liquidity risk
management. The Company regularly assesses changes in the market environment and the Company's
operating activities to determine whether to update risk management policies and systems. The
Company's risk management is carried out by the risk management committee in accordance with the
policies approved by the board of directors. The Risk Management Committee identifies evaluates and
avoids related risks through close cooperation with the Company’s other business departments. The
Company's internal audit department conducts regular audits on risk management controls and
procedures and reports the audit results to the Company's audit committee.The Company diversifies the risk of financial instruments through appropriate diversified
investments and business portfolios and reduces risk concentrated on a single industry a specific
region or a specific counterparty by formulating appropriate risk management policies.
1. Market risk
Market risk of financial instruments refers to the risk that the fair value or future cash flow of
financial instruments will fluctuate due to changes in market price including foreign exchange rate risk
interest rate risk and other price risk.
(1). Foreign exchange rate risk
Exchange rate risk refers to the risk that the fair value of financial instruments or future cash flows
will fluctuate due to changes in foreign exchange rates. The Company's main operations are located in
China Hong Kong Singapore domestic business is settled in RMB export business is mainly settled in
US dollar and overseas operating companies are settled in US dollar so the Company's determined
310 / 3522024 Annual Report 311
foreign currency assets and liabilities and future foreign currency transactions (Foreign currency assets
and liabilities and foreign currency transactions are mainly denominated in US dollar.) were exposed to
foreign exchange rate risk. Related foreign currency assets and foreign currency liabilities include:
Cash and bank balances Accounts receivable Receivable financing Other receivables Accounts
payable Notes payable Other payables Short-term loans and Non-current liabilities due within one
year. Amount of financial assets and foreign currency financial liabilities dominated in foreign currencyand converted into RMB can be found in “Notes to Consolidated Financial Statements Items - Items inForeign Currencies” in this note.The Company pays close attention to the impact of exchange rate changes on the Company's
exchange rate risk and matches foreign currency income with foreign currency expenditure as much as
possible to reduce foreign exchange risk. In addition the Company also signed forward foreign
exchange contracts to prevent the exchange risk of the Company's revenue settled in US dollars. At the
end of the current period the foreign exchange risks faced by the Company mainly originated from
financial assets and liabilities denominated in US dollar. Amount of foreign currency financial assets
and foreign currency financial liabilities converted into RMB is shown in “Items in foreign currencies” in
this note.If all the other variables remain unchanged the impact of a 5% appreciation or depreciation of the
RMB against the US dollar on the company's net profit is as follows:
Impact on net profit (RMB ten thousand)
Exchange rate changes
Current year Prior year
Up5% -31136.13 -41759.98
Down5% 31136.13 41759.98
The management believes that 5% reasonably reflects the reasonable range of possible changes in
the RMB against the US dollar.
(2). Interest rate risk
Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows
will fluctuate due to changes in market interest rates. The risks faced by the Company in changing
market interest rates are mainly related to the Company's borrowings with floating interest rates. The
Company's interest rate risk mainly arises from long-term interest-bearing debts such as long-term
bank loans and bonds payable. Floating interest rate financial liabilities expose the Company to cash
flow interest rate risk while fixed interest rate financial liabilities expose the Company to fair value
interest rate risk. The Company determines the relative ratio of fixed rate and floating rate contracts
according to the market environment at that time and maintains an appropriate combination of fixed
and variable rate instruments through regular review and monitoring.When other variables remain unchanged if the borrowing rate calculated at floating interest rates
increases or decreases by 50 basis points the impact on the company's net profit is as follows:
Impact on Net profit (RMB ten thousand)
Interest rate changes
Current year Current year
Up 50 basis points -34585.58 -41340.58
Down 50 basis points 34585.58 41340.58
Management believes that 50 basis points reasonably reflects a reasonable range of possible
changes in interest rates over the next year.
(3). Other price risks
The Company does not hold equity investments in other listed companies and there is no other
price risk.
2. Credit risk
Credit risk refers to the risk that the counterparty of a transaction fails to perform its contractual
obligations resulting in financial losses to the Company. The Company's credit risk mainly arises from
Cash at bank and Receivables.The Company's cash at bank is mainly deposited in state-owned banks and other large and
medium-sized listed banks. The Company does not expect cash at bank to have significant credit risk.
311 / 3522024 Annual Report 312
For Receivables the Company sets relevant policies to control credit risk exposure in accordance
with the concentration of customer management credit risk. The Company evaluates the debtor's
credit qualifications based on the debtor's financial status external ratings possibility of obtaining
guarantees from third parties credit history and other factors such as current market conditions and
sets the corresponding arrearage amount and credit period. The Company will regularly monitor the
credit history of the debtor. For debtors with poor credit records the Company will use written
reminders shorten the credit period or cancel the credit period to ensure that the Company's overall
credit risk is within control. Since the Company's Receivables customers are widely dispersed in
different regions and industries there is no significant concentration of credit risk in the Company.The Company does not provide any other guarantees that may subject the Company to credit risk.The largest credit risk exposure undertaken by the Company is the carrying amount of each financial
asset in the balance sheet.
(1). Judgment basis for significant increase in credit risk
The Company assesses on each balance sheet date whether the credit risk of relevant financial
instruments has increased significantly since initial recognition. When determining whether the credit
risk has increased significantly since the initial recognition the Company considers that it can obtain
reasonable and evidence-based information without unnecessary extra cost or effort including
qualitative and quantitative analysis based on the Company's historical data external credit risk rating
and forward-looking information. When one or more of the following quantitative and qualitative
standards are met the Company believes that credit risk has increased significantly:
1) The contract payment has been overdue for more than 30 days.
2) According to the results of external public credit ratings the debtor’s credit rating dropped
significantly.
3) There are serious problems in the debtor's production or operation and the actual or expected
results of the operation have dropped significantly.
4) Significantly adverse changes have occurred in the debtor’s regulatory economic or
technological environment.
5) It is expected that the debtor’s business financial or economic conditions that will meet its
debt-servicing capacity will undergo significant adverse changes.
6) Other objective evidence shows that financial assets have significantly increased credit risk.
(2). Basis of credit impairment
When evaluating whether the debtor has suffered credit impairment the Company mainly
considers the following factors:
1) The issuer or debtor has significant financial difficulties.
2) The debtor violates the contract such as interest payment or principal default or overdue etc.
3) Due to economic or contractual considerations related to the debtor’s financial difficulties the
creditor gives the debtor a concession that would not be made under any other circumstances.
4) The debtor is likely to go bankrupt or undergo other financial restructuring.
5) The issuer or debtor's financial difficulties caused the active market for the financial asset to
disappear.
6) Purchase or source a financial asset at a substantial discount the discount reflects the fact that
credit losses have occurred.
(3). Parameters of measurement of expected credit loss
The parameters of expected credit loss measurement are based on whether there has been a
significant increase in credit risk and whether credit impairment has occurred. The Company measures
the loss provision for different assets with 12 months or the expected lifetime of the entire credit
period. The key parameters of expected credit loss measurement include default probability default
loss rate and default risk exposure. The Company considers the quantitative analysis of historical
statistical data and forward-looking information to establish default probability default loss rate and
default risk exposure model. The relevant definitions are as follows:
1) The probability of default refers to the possibility that the debtor will not be able to meet its
repayment obligations in the next 12 months or throughout the remaining duration.
2) The default risk exposure refers to the amount that the Company should be reimbursed when a
default occurs in the next 12 months or throughout the remaining duration.
312 / 3522024 Annual Report 313
3) The default loss rate refers to the Company's expectation of the degree of loss in default
exposure. Depending on the type of counterparty the method and priority of recourse and the
availability of collateral or other credit support the rate of default loss varies.The Company determines the expected credit loss by predicting the default probability default
loss rate and default risk exposure of individual exposures or asset portfolios in the coming months.During the reporting period there have been no major changes in the expected credit loss estimation
techniques or key assumptions.
(4). Forward-looking information included in the expected credit loss model
The assessment of a significant increase in credit risk and the calculation of expected credit losses
involve forward-looking information. Through historical data analysis the Company has identified
relevant information that affects the credit risk and expected credit losses of each asset portfolio such
as GDP growth rate and other macroeconomic conditions and industry development stages such as
industry cycle stage. The Company predicts the impact of this information on the probability of default
and the rate of default loss on the basis of considering changes in the Company's future sales strategy
or credit policy.
3.Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise performs its obligation to
settle cash or other financial assets. Liquidity risk is centrally controlled by the Company's financial
department. The finance department monitors cash balances securities that can be cashed at any time
and rolling forecasts of cash flows over the next 12 months to ensure that the Company has sufficient
funds to repay debts under all reasonable forecasts meet the Company’s operating needs and reduce
the impact of cash flow fluctuations.The financial liabilities and off-balance sheet guarantee items held by the company are analyzed
according to the maturity period of the undiscounted remaining contractual cash flow (Unit:
ten-thousand-yuan):
Closing balance
Item Within one One to two Two to three More than
year years years three years Total
Bank
borrowing 12262818.17 1778225.80 1280639.86 4886652.92 20208336.75
Financial
liabilities
held for 50378.73 - - - 50378.73
trading
Notes
payable 1144730.63 - - - 1144730.63
Accounts
payable 948965.76 - - - 948965.76
Other
payables 37524.92 - - - 37524.92
Lease
liabilities 6870.57 5066.80 4155.67 26298.67 42391.71
Long-term
payables 107889.05 128280.54 31269.12 85450.50 352889.21
Bonds
payable 204350.00 - - - 204350.00
Total
financial
liabilities and 14763527.83 1911573.14 1316064.65 4998402.09 22989567.71
contingent
liabilities
313 / 3522024 Annual Report 314
Continued:
Beginning balance
Item Within one One to two Two to three More than
year years years three years Total
Bank borrowing 8816488.06 1166222.44 1308678.55 6010008.31 17301397.36
Financial
liabilities held for 19032.43 - - - 19032.43
trading
Notes payable 1200245.36 - - - 1200245.36
Accounts
payable 1559866.76 - - - 1559866.76
Other payables 41622.49 - - - 41622.49
Lease liabilities 4188.18 2577.97 1009.84 1055.12 8831.11
Long-term
payables 50923.22 88241.72 109148.72 19036.84 267350.51
Bonds payable 103530.00 - - - 103530.00
Total financial
liabilities and
contingent 10099557.28 1257042.13 1418837.11 6030100.26 18805536.79
liabilities
The financial liability amounts disclosed in the table above represent undiscounted contractual
cash flows and may therefore differ from the carrying amount in the balance sheet.(IV) Capital management
The goal of the Company's capital management policy is to ensure that the Company can continue
to operate so as to provide returns for shareholders and benefit other stakeholders while maintaining
the optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital
structure the Company may adjust the amount of dividends paid to shareholders return capital to
shareholders issue new shares or sell assets to reduce debt. The Company monitors the capital
structure on the basis of the asset-liability ratio (ie total liabilities divided by total assets). As of 31
December 2024 the Company's asset-liability ratio was 76.78% (31 December 2023: 78.98%).
2. Hedging
(1). The company carries out hedging business for risk management
□适用√不适用
Other notes:
□适用√不适用
(2). The company carries out eligible hedging business and applies hedging accounting
□适用√不适用
Other notes:
□适用√不适用
(3). The company conducts hedging business for risk management and expects to achieve risk
management objectives but has not applied hedging accounting
□适用√不适用
314 / 3522024 Annual Report 315
Other notes:
□适用√不适用
3. Transfer of financial assets
(1). Classification of Transfer Methods
□适用√不适用
(2). Financial assets derecognized due to transfer
□适用√不适用
(3). Transfer of financial assets that continue to be involved
□适用√不适用
Other notes:
□适用√不适用
XIII. Disclosure of fair value
1. Fair value of assets and liabilities measured at fair value at the end of the period
√适用□不适用
Unit: Yuan Currency: RMB
Fair value at year end
Item Level 1 fair value Level 2 fair value Level 3 fair value
measurement measurement measurement Total
I. Recurring fair
value
measurement
(I) Financial assets
held for trading 245230433.27 183149936.00 - 428380369.27
1.Financial assets
at fair value
through profit or 245230433.27 183149936.00 - 428380369.27
loss
(1)Debt instruments
investment - 105825612.00 - 105825612.00
(2)Equity
instruments - 77324324.00 - 77324324.00
investment
(3)Derivative
financial assets 245230433.27 - - 245230433.27
2. Financial assets
designated at fair
value through profit
or loss
(1)Debt instruments
investment
(2)Equity
instruments
315 / 3522024 Annual Report 316
investment
(II) Other debt
investments
(III) Other equity
instruments
investment
(IV) Investment
properties
1.Land use rights
for rental
2.Leased buildings
3.Land use rights
that are held and
ready to be
transferred after
appreciation
(V) Biological assets
1.Consumptive
biological assets
2.Productive
biological assets
(VI) Receivables
financing - - 6628663752.25 6628663752.25
Total assets
measured at fair
value on recurring 245230433.27 183149936.00 6628663752.25 7057044121.52
basis
(VI) Financial
liabilities held for 503787256.86 - - 503787256.86
trading
1.Financial liabilities
at fair value
through profit or 88092248.88 - - 88092248.88
loss
Including: Issued
trading bonds
Derivative
financial liabilities 88092248.88 - - 88092248.88
Others - - - -
2.Designated as
financial liabilities
at fair value 415695007.98 - - 415695007.98
through profit or
loss
Total liabilities
measured at fair
value on recurring 503787256.86 - - 503787256.86
basis
II. Non-recurring
fair value
measurement
(I) Assets
held-for-sale
316 / 3522024 Annual Report 317
Total assets
measured at fair
value on a
non-recurring basis
Total liabilities
measured at fair
value on a
non-recurring basis
2. The basis for determining the market value of the continuous and non-continuous Level 1 fair
value measurement
√适用□不适用
For futures contracts with an active market price the fair value is determined based on the
quotation on the balance sheet date.
3. Continuous and non-continuous Level 2 fair value measurement using valuation techniques and
qualitative and quantitative information on important parameters
√适用□不适用
For debt instrument investments wealth management products structured deposits fund trusts
and asset management products held by the company valuation techniques are used to determine
their fair value. The valuation model used is the discounted cash flow model/market quotes or dealer
quotes for similar instruments.
4. Continuous and non-continuous Level 3 fair value measurement using valuation techniques and
qualitative and quantitative information on important parameters
√适用□不适用
For receivables financing that is not traded in an active market the carrying amount is similar to
the fair value and the carrying amount is used as the fair value.
5. Continuous third-level fair value measurement items reconciliation information between book
value at the beginning and end of the period and sensitivity analysis of unobservable
parameters
□适用√不适用
6. Continuing fair value measurement items conversions between levels during the current period
reasons for the conversions and policies for determining the timing of the conversions
□适用√不适用
7. Valuation technology changes during the period and reasons for the changes
□适用√不适用
8. Fair value of financial assets and financial liabilities not measured at fair value
√适用□不适用
The Company's financial assets and financial liabilities measured at amortised cost mainly include:
Cash and bank balances Note receivables Accounts receivable Other receivables Short-term loans
317 / 3522024 Annual Report 318
Notes payable Accounts payable Other payables Non-current liabilities due within one year Long
term loans etc. The difference between the carrying amount of the financial assets and financial
liabilities that the Company does not measure at fair value and their fair value are immaterial.
9. Others
□适用√不适用
XIV. Related party and related party transactions
1. Information of parent company
√适用□不适用
Unit: ten-thousand-yuan Currency: RMB
Parent Shareholding Parent company's
Company Place of Nature of Registered ratio of parent voting right ratio
Name Registration business capital company to theCompany (%) (%)
Hengli
Group Co. Wujiang IndustrialJiangsu Investment 200200.00 29.84 29.84Ltd.Description of the parent company of the Company
The Company’s ultimate controlling party is the couple of Chen Jianhua and Fan Hongwe. Chen
Jianhua and Fan Hongwei directly held 11.24% shares of the Company and through Hengli Group Co.Ltd. and other 5 companies to hold 64.21% of shares of the Company and totally held75.45% of shares
of the Company.The ultimate controlling party of this enterprise is Chen Jianhua and Fan Hongwei's family
Other notes:
None
2. The Company's subsidiaries
For the details of the subsidiaries of the company please refer to the notes
√适用□不适用For details of the Company's subsidiaries please refer to “Interests in Other Entities — Interests inSubsidiaries”
3. The Company's joint ventures and associates
For the details of the subsidiaries of the company please refer to the notes
√适用□不适用
For details of the Company’s significant joint ventures and associated entities please refer to the note
“Interests in Other Entities — Interests in Joint Arrangements or Associates”.The situation of other joint ventures or associates that had related party transactions with the
company in the current period or had balances with the company in the previous period is as follows
□适用√不适用
Other notes:
□适用√不适用
318 / 3522024 Annual Report 319
4. Other related party
√适用□不适用
Name of other related parties Other related party and its relationship with theCompany
Dalian Henghan Investment Co. Ltd. Companies controlled by the actual controller of theCompany
Guangdong Songfa Ceramics Co. Ltd. Companies controlled by our parent company
Suzhou Wujiang Tongli Lake Tourism Resort
Co. Ltd. Companies controlled by our parent company
Suzhou Hengli Real Estate Co. Ltd. Companies controlled by our parent company
Hengli Industrial Investment (Suzhou) Co.Ltd. Companies controlled by our parent company
Suzhou Gufeng Asset Management Co. Ltd. Companies controlled by our parent company
Hengli Cloud Commerce Technology Co.Ltd. Companies controlled by our parent company
Wujiang Huajun Textile Co. Ltd. Companies controlled by our parent company
Jiangsu Boyada Textile Co. Ltd. Companies controlled by our parent company
Jiangsu Deshun Textile Co. Ltd. Companies controlled by our parent company
Jiangsu Dehua Textile Co. Ltd. Companies controlled by our parent company
Hengli (Suzhou) Textile Sales Co. Ltd. Companies controlled by our parent company
Sichuan Hengli Intelligent Textile
Technology Co. Ltd. Companies controlled by our parent company
Hengli (Guizhou) Textile Intelligent
Technology Co. Ltd. Companies controlled by our parent company
Jiangsu Peijie Textile Intelligent Technology
Co. Ltd. Companies controlled by our parent company
Suqian Lishun Real Estate Co. Ltd. Hengli Companies controlled by the actual controller of the
Hotel Branch Company
Suqian Bailong Garden Technology Co. Ltd. Companies controlled by the actual controller of theCompany
Hengli Real Estate (Dalian) Co. Ltd. Companies controlled by the actual controller of theCompany
Dalian Victoria Property Services Co. Ltd. Companies controlled by the actual controller of theCompany
Dalian Kangjia Property Services Co. Ltd. Companies controlled by the actual controller of theCompany
Suzhou Tonglihong Brewing Co. Ltd. Companies controlled by the actual controller of theCompany
Suzhou Tonglihong E-commerce Co. Ltd. Companies controlled by the actual controller of theCompany
Suzhou Hengli Intelligent Technology Co. Companies controlled by the actual controller of the
Ltd. Company
Suzhou Hengli System Integration Co. Ltd. Companies controlled by the actual controller of theCompany
Jiangsu Changshun Textile Co. Ltd. Companies controlled by the actual controller of theCompany
Nantong Deji Concrete Co. Ltd. Companies controlled by the actual controller of theCompany
Hengli Import & Export Co. Ltd. Companies controlled by our parent company
Jiangsu Wuzhou Bay Hengli International
Hotel Co. Ltd. Companies controlled by our parent company
319 / 3522024 Annual Report 320
Hengli Engine (Dalian) Co. Ltd. Companies controlled by the actual controller of theCompany
Hengli Precision Casting (Dalian) Co. Ltd. Companies controlled by the actual controller of theCompany
Hengli Green Building Materials (Dalian) Companies controlled by the actual controller of the
Co. Ltd. Company
Hengli Shipbuilding (Dalian) Co. Ltd. Companies controlled by the actual controller of theCompany
Hengli Equipment Manufacturing (Dalian) Companies controlled by the actual controller of the
Co. Ltd. Company
Hengli Integrated Services (Dalian) Co. Ltd. Companies controlled by the actual controller of theCompany
Hengli International Hotel (Suqian) Co. Ltd. Companies controlled by the actual controller of theCompany
Hengli Marine Engineering (Dalian) Co. Ltd. Companies controlled by the actual controller of theCompany
Hengli Heavy Industries Group Co. Ltd. Companies controlled by the actual controller of theCompany
Jiangsu Hengli Charity Foundation Companies controlled by our parent company
Wujiang Sunan Rural Microfinance Co. Ltd. Companies controlled by our parent company
Dalian Hengli Hotel Co. Ltd. Companies controlled by the actual controller of theCompany
Shenzhen Lizheng Design and Planning Co. Companies controlled by close family members of the
Ltd. actual controller of the Company
Hengli Marine Outfitting (Dalian) Co. Ltd. Companies controlled by the actual controller of theCompany
Other enterprises directly or indirectly controlled by the
Beijing Silk Road Wine Co. Ltd. actual controller of the company and his close family
members
Xinhai No.4 (Tianjin) Ship Leasing Co. Ltd. Note 1
Note 1: Hengli Shipping (Dalian) Co. Ltd. (a subsidiary of the Company) leases vessels from Xinhai
No.4 (Tianjin) Ship Leasing Co. Ltd. which were originally purchased by Xinhai No.4 from Hengli
Shipbuilding (Dalian) Co. Ltd. (a related party of the Company). In accordance with the principle of
substance over form the relevant leasing fees paid to Xinhai No. 4 (Tianjin) Ship Leasing Co. Ltd. were
disclosed as related-party transactions.Other notes:
None
5. Related-party transactions
(1). Purchase and sale of goods acceptance and provision of labor services
Purchase of goods/acceptance of labor services
√适用□不适用
Unit: Yuan Currency: RMB
Whether
Nature of Approved the
Related party transactio Current year transaction transactio
n amount (if n limit is
Prior year
applicable) exceeded
(if
320 / 3522024 Annual Report 321
applicable
)
Jiangsu Boyada Others
Textile Co. Ltd. 109077.17 150000.00 No 23951.15
Suzhou Wujiang Others No
Tongli Lake
Tourism Resort 70462.44 100000.00 88874.00
Co. Ltd.Jiangsu Deshun Others
Textile Co. Ltd. 1234813.29 1300000.00
No 1636122.16
Jiangsu Deshun Others
Textile Co. Ltd. 1174868.79 1200000.00
No 1533394.95
Jiangsu Dehua Others No
Textile Co. Ltd. 3778487.80 10500000.00 5847923.57
Suqian Lishun Real Others No
Estate Co. Ltd.Hengli Hotel - - 329392.72
Branch
Suqian Bailong No
Garden Fixed
Technology Co. assets 876828.00 900000.00 1583934.00
Ltd. etc.Dalian Kangjia Others No
Property Services 6688447.20 10000000.00 4922687.31
Co. Ltd.Suzhou Tonglihong Others No
Brewing Co. Ltd. 7350.00 10000.00 147847.00
Suzhou Hengli Others No
Intelligent
Technology Co. 43745283.01 55000000.00 45985849.08
Ltd.Suzhou Hengli Fixed No
System Integration assets 4477878.61 20000000.00 13087680.39
Co. Ltd. etc.Nantong Deji Concrete
Concrete Co. Ltd. mortar 15909480.30 39900000.00
No 24250531.57
Nantong Deji Others No
Concrete Co. Ltd. 61389.38 100000.00 -
Suzhou Tonglihong Others No
E-commerce Co. 2246986.02 2300000.00 3011539.56
Ltd.Guangdong Songfa Others
Ceramics Co. Ltd. 141631.86 160000.00
No 80009.64
Jiangsu Peijie Others No
Textile Intelligent
Technology Co. 9220527.00 9300000.00 991728.43
Ltd.Suzhou Gufeng Others No
Asset
Management Co. 2124701.82 2200000.00 2185917.88
Ltd.Hengli Import & Others 426523.62 500000.00 No 169939.00
321 / 3522024 Annual Report 322
Export Co. Ltd.Jiangsu Wuzhou Others No
Bay Hengli
International 1112178.84 1150000.00 970549.48
Hotel Co. Ltd.Sichuan Hengli No
Intelligent Textile Fixed
Technology Co. assets 63343.68 40000000.00 -etc.Ltd.Sichuan Hengli Others No
Intelligent Textile
Technology Co. 1555124.52 2000000.00 1752691.69
Ltd.Dalian Victoria Others No
Property Services 6042827.51 6100000.00 5979302.45
Co. Ltd.Hengli (Guizhou) No
Textile Intelligent
Technology Co. Others 1067516.88 1200000.00 533366.81
Ltd.Hengli (Guizhou) Machiner No
Textile Intelligent y and
Technology Co. Equipmen - - 1464159.29
Ltd. t
Hengli Others No
International
Hotel (Suqian) Co. 184891.87 250000.00 89895.45
Ltd.Hengli Marine Others No
Engineering 1203539.82 3050000.00 3495575.23
(Dalian) Co. Ltd.
Hengli Green Engineeri No
Building Materials ng
(Dalian) Co. Ltd. materials
-400000.0011597337.37
etc.Hengli Others No
Shipbuilding 115325.63 161923500.00 1752212.38
(Dalian) Co. Ltd.
Hengli Heavy Others No
Industries Group - - 486716.81
Co. Ltd.Hengli Equipment Engineeri No
Manufacturing ngmaterials 187477955.65 190600000.00 189866254.91(Dalian) Co. Ltd. etc.Jiangsu Hengli Others No
Charity - - 38400.00
Foundation
Dalian Hengli Others No
Hotel Co. Ltd. 1656174.49 1700000.00 -
Shenzhen Lizheng Others No
Design and 941747.58 1000000.00 -
Planning Co. Ltd.
322 / 3522024 Annual Report 323
Beijing Silk Road Others
Wine Co. Ltd. 23258814.16 24000000.00
No -
Sales of goods / provision of services
√适用□不适用
Unit: Yuan Currency: RMB
Related parties Nature oftransaction Current year Prior year
Jiangsu Boyada Textile Co. Ltd. Polyester yarn 93384231.34 208640252.11
Jiangsu Boyada Textile Co. Ltd. Steam 8874488.37 8965416.13
Jiangsu Boyada Textile Co. Ltd. Others 189157.96 198723.96
Jiangsu Boyada Textile Co. Ltd. Refined Oil 559994.35 305975.57
Wujiang Huajun Textile Co. Ltd. Steam 33077.72 40103.35
Wujiang Huajun Textile Co. Ltd. Others 19293.37 1599.24
Wujiang Huajun Textile Co. Ltd. Polyester yarn 2116044.05 663.97
Jiangsu Deshun Textile Co. Ltd. Polyester yarn 101620017.68 124149644.53
Jiangsu Deshun Textile Co. Ltd. Others 123275.86 153641.73
Jiangsu Dehua Textile Co. Ltd. Polyester yarn 53556371.61 63867811.29
Jiangsu Dehua Textile Co. Ltd. Others 56581.27 86418.82
Sichuan Hengli Intelligent Textile
Technology Co. Ltd. Polyester yarn 384477341.36 398169463.06
Jiangsu Peijie Textile Intelligent
Technology Co. Ltd. Polyester yarn 343475556.86 371255430.92
Jiangsu Peijie Textile Intelligent
Technology Co. Ltd. Others 189205.79 36617.69
Nantong Deji Concrete Co. Ltd. Others 11634.61 -
Hengli (Guizhou) Textile Intelligent
Technology Co. Ltd. Polyester yarn 267295424.19 231835864.48
Hengli Cloud Commerce Technology Co.Ltd. Finished Oil - 22575772.03
Hengli Cloud Commerce Technology Co. Others
Ltd. 2183.37 8952.38
Hengli Heavy Industries Group Co. Ltd. Others 546125.30 -
Hengli Engine (Dalian) Co. Ltd. Refined Oil andothers 1797913.41 504719.29
Hengli Precision Casting (Dalian) Co. Refined Oil and
Ltd. others 243454.78 925895.93
Hengli Green Building Materials (Dalian) Refined Oil and
Co. Ltd. others 1604265.31 2604414.46
Hengli Green Building Materials (Dalian)
Co. Ltd. Steam 2810759.03 -
Hengli Shipbuilding (Dalian) Co. Ltd. Refined Oil andothers 45103375.05 2760539.05
Hengli Shipbuilding (Dalian) Co. Ltd. Concrete mortar 72456924.73 -
Hengli Shipbuilding (Dalian) Co. Ltd. Engineeringmaterials etc. 269330.95 -
Hengli Equipment Manufacturing Refined Oil and
(Dalian) Co. Ltd. others 1681158.23 857751.11
Hengli Integrated Services (Dalian) Co. Others
Ltd. - 126431.79
Hengli (Suzhou) Textile Sales Co. Ltd. Others - 153.73
323 / 3522024 Annual Report 324
Hengli Marine Engineering (Dalian) Co. Refined Oil and
Ltd. others 6810984.43 1776720.23
Hengli Marine Outfitting (Dalian) Co. Others
Ltd. 1035269.42 -
Hengli Import & Export Co. Ltd. Others - 1567666.90
Suzhou Gufeng Asset Management Co. Others
Ltd. 1173.50 -
Suzhou Hengli Real Estate Co. Ltd. Others 55295.10 57335.61
Note to purchase and sale of goods acceptance and provision of labor services
□适用√不适用
(2). Related entrusted management/contracting and entrusted management/contracting
The company's entrusted management/contracting situation table:
□适用√不适用
Note to custodian/contracting situation with related party
□适用√不适用
The company's entrusted management/outsourcing situation
□适用√不适用
Note to entrusted management/outsourcing with related party
□适用√不适用
(3). Rental with related party
The Company’s as lessor:
√适用□不适用
Unit: Yuan Currency: RMB
Tenant Category of
Rental income
included in current Rental incomelease assets period recognised in prior year
Hengli (Suzhou) Textile Sales Co. Property and
Ltd. real estate 1207904.60 1705275.24
Hengli Real Estate (Dalian) Co. Property and
Ltd. real estate 2092450.74 2183815.52
Hengli Heavy Industries Group Property and
Co. Ltd. real estate 9498623.85 7128440.37
Wujiang Sunan Rural Property and
Microfinance Co. Ltd. real estate - 18481.65
Hengli Shipbuilding (Dalian) Co. Property and
Ltd. real estate 2177766.17 1270363.60
Dalian Hengli Hotel Co. Ltd. Property andreal estate 332146.79 -
The Company’s as leasee:
√适用□不适用
Unit: Yuan Currency: RMB
324 / 3522024 Annual Report 325
Variable
lease
Rental charge of payment
short-term s not
leases and included
Cate low-value asset in the Interest Increase of
gory leases under measure Rent paid expense of Right-of-use
Landlo of simplified
ment of lease liabilities assets
rd leas method (if
lease
e applicable) liabilities
asse (if
ts applicabl
e)
Curr Pri Pri
Curren Prior ent or Current Prior Curren Prior Current or
t year year yea ye year year t year year year ye
r ar ar
Jiangs Prop
u erty
Deshu and
n real 21765 3163 - 217654 31632
Textile estat 4.07 259.60 .07 59.60
---
Co. e
Ltd.Jiangs Prop
u erty
Boyad and
a real 1126 1805 11266 18050
Textile estat 670.77 013.11 70.77 13.11
---
Co. e
Ltd.Hengli Prop
Indust erty
rial and
Invest real 11640 11859 28794 7923
ment estat - - 738.68 286.39 3.83 91.95 -
(Suzho e
u) Co.Ltd.Hengli Prop
Real erty
Estate and 18385 - 183853(Dalian real 3.21 .21 - - - -
) Co. estat
Ltd. e
Suzho Prop
u erty
Tongli and
hong real 11009 - 11009. - - - -
E-com estat .17 17
merce e
Co.
325 / 3522024 Annual Report 326
Ltd.Jiangs Prop
u erty
Peijie and
Textile real
Intellig estat 11009 11009.ent e .17 - 17 - - - -
Techn
ology
Co.Ltd.Xinhai
No.4
(Tianji
n) Ship Ship - - - 92339 - 6675 - 399397
Leasin s 468.41 792.04 566.24
-
g Co.Ltd.Note to rental with related party
□适用√不适用
(4). Guarantee with related parties
The Company as a guarantor
□适用√不适用
The company as the guaranteed party
√适用□不适用
Unit: Yuan Currency: RMB
Whether
the
Guarantor Guaranteed Amount Start date of Guaranteeguarantee expiry date guaranteehas been
fulfilled
Chen Jianhua Fan
Hongwei CNY9845377334.03 2021/6/21 2031/8/20 No
Chen Jianhua Fan
Hongwei[Note 1] CNY1404220621.21 2024/5/6 2025/11/28
No
Chen Jianhua Fan
Hongwei[Note 2] USD839454.00 2024/5/13 2025/3/8
No
Chen Jianhua Fan
Hongwei[Note 3] CNY999530000.00 2020/8/24 2026/12/20
No
Chen Jianhua Fan
Hongwei[Note 4] CNY220300000.00 2023/8/3 2025/12/31
No
Chen Jianhua Fan
Hongwei[Note 5] CNY283717375.46 2021/12/14 2026/12/14
No
Chen Jianhua Fan
Hongwei[Note 6] CNY3093350000.00 2023/5/24 2038/5/16
No
Chen Jianhua Fan
Hongwei[Note 7] CNY1580272075.55 2023/5/29 2038/5/21
No
Chen Jianhua Fan CNY3349633421.53 2023/12/7 2025/8/3 No
326 / 3522024 Annual Report 327
Hongwei Hengli Group
Co. Ltd.Chen Jianhua Fan No
Hongwei Hengli Group CNY734844311.34 2024/7/15 2025/2/14
Co. Ltd. [Note 8]
Chen Jianhua Fan No
Hongwei Hengli Group CNY12366000000.00 2023/6/29 2033/6/15
Co. Ltd.[Note 9]
Hengli Group Co. Ltd. CNY8400577802.06 2024/1/19 2026/11/21 No
Hengli Group Co.Ltd.[Note 10] CNY6764918923.81 2024/1/19 2025/6/26
No
Hengli Group Co.Ltd.[Note 11] EUR107912.00 2024/12/1 2025/3/6
No
Hengli Group Co. No
Ltd.[Note 12] CNY280000000.00 2020/3/24 2028/2/19
Hengli Group Co.Ltd.[Note 13] CNY612000000.00 2022/6/6 2029/1/28
No
Hengli Group Co.Ltd.[Note 14] CNY 2986578720.00 2022/2/26 2027/1/27
No
Chen Jianhua Fan No
Hongwei Hengli Group
Co. Ltd. Jiangsu Boyada
Textile Co. Ltd. Jiangsu
Deshun Textile Co. Ltd. CNY23000000000.02 2018/5/3 2033/5/2
Jiangsu Dehua Textile Co.Ltd. Wujiang Chemical
Fiber Weaving Factory Co.Ltd. [Note 15]
Chen Jianhua Fan No
Hongwei Hengli Group
Co. Ltd. Jiangsu Boyada
Textile Co. Ltd. Jiangsu
Deshun Textile Co. Ltd. USD850000000.00 2018/5/3 2033/5/2
Jiangsu Dehua Textile Co.Ltd. Wujiang Chemical
Fiber Weaving Factory Co.Ltd. [Note 16]
Chen Jianhua Fan No
Hongwei Jiangsu Boyada
Textile Co. Ltd. Jiangsu
Deshun Textile Co. Ltd.Jiangsu Dehua Textile Co. CNY6444500000.01 2019/12/19 2034/12/19
Ltd. Wujiang Chemical
Fiber Weaving Factory Co.Ltd. [Note 17]
Guarantee with related parties
√适用□不适用
[Note 1]: The Company also placed security deposits to provide pledge guarantee.[Note 2]: The Company also placed security deposits to provide pledge guarantee.[Note 3]: The Company also provides mortgage guarantees with property and real estate and land use
rights.
327 / 3522024 Annual Report 328
[Note 4]: The Company also provides mortgage guarantees with property and real estate machine
equipment land use rights.[Note 5]: The Company also provides mortgage guarantee with the sea area use rights.[Note 6]: The Company also provides mortgage guarantees with property and real estate and the
construction in progress.[Note 7]: The Company also provides mortgage guarantees with property and real estate machine
equipment land use rights.[Note 8]: The Company also placed security deposits to provide pledge guarantee.[Note 9]: The Company also provides mortgage guarantees with property and real estate and the
construction in progress.[Note 10]: The Company also placed security deposits to provide pledge guarantee.[Note 11]: The Company also placed security deposits to provide pledge guarantee.[Note 12]: The Company also provides mortgage guarantees with property and real estate.[Note 13]: The Company also provides mortgage guarantees with land use rights.[Note 14]: The Company also provides mortgage guarantees for property and real estate and land use
rights.[Note 15]: The Company also provides mortgage guarantees for property and real estate land use
rights Construction in progress and machinery and equipment.[Note 16]: The Company also provides mortgage guarantees for property and real estate land use
rights Construction in progress and machinery and equipment.[Note 17]: The Company also provides mortgage guarantees for property and real estate land use
rights Construction in progress and machinery and equipment.
(5). Loans and borrowings with related parties
□适用√不适用
(6). Assets transfer and debt restructuring with related parties
√适用□不适用
Unit: Yuan Currency: RMB
Related party Nature oftransaction Current year Prior year
Sichuan Hengli Intelligent Textile Property and real
Technology Co. Ltd. estate 18281967.86 127597951.89
Hengli Marine Engineering (Dalian) Machinery and
Co. Ltd. equipment 1746895.01 -
Hengli Shipbuilding (Dalian) Co. Ltd. Machinery andequipment 4318584.06 -
(7). Compensation of key management personnel
√适用□不适用
Unit: ten-thousand-yuan Currency: RMB
Item Current year Prior year
Compensation of key management
personnel 1165.91 1043.45
(8). Other related-party transactions
√适用□不适用
1) The Company purchases and sells for related parties
328 / 3522024 Annual Report 329
Unit: ten-thousand-yuan Currency: RMB
Name of related party Transaction Current year Prior year
content
Hengli (Suzhou) Textile Sales Co. Ltd. Electricity 497332.67 543475.26
Jiangsu Boyada Textile Co. Ltd. Electricity 981853.23 1466939.59
Jiangsu Deshun Textile Co. Ltd. Electricity 69264098.05 82002884.88
Sichuan Hengli Intelligent Textile
Technology Co. Ltd. Electricity 152379833.24 148408893.05
Nantong Deji Concrete Co. Ltd. Electricity 18636.21 65179.01
2) Related parties purchase and sell for the Company
Unit: ten-thousand-yuan Currency: RMB
Name of related party Transaction Current year Prior year
content
Jiangsu Deshun Textile Co. Ltd. Water andelectricity 607374.02 248766.98
Jiangsu Boyada Textile Co. Ltd. Water andelectricity 476015.85 35717.79
Suzhou Gufeng Asset Management Water and
Co. Ltd. electricity 98276.07 183151.72
6. Unsettled items such as receivables and payables with related parties
(1). Receivables from related parties
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Item Related parties
Book balance Provision forbad debts Book balance
Provision for
bad debts
Hengli
Notes Shipbuilding
Receivable (Dalian) Co. 4582500.00 229125.00 - -
Ltd.Hengli
Notes Equipment
Receivable Manufacturing 1527492.60 76374.63 - -(Dalian) Co.Ltd.Accounts Wujiang Huajun
receivable Textile Co. Ltd. 6860.70 343.04 6467.04 323.35
Hengli
Accounts Shipbuilding
receivable (Dalian) Co. 71737207.22 3586860.36 1379248.60 68962.43
Ltd.Accounts Jiangsu Boyada
receivable Textile Co. Ltd. - - 270 13.5
Accounts Hengli Heavy
receivable Industries 2510864.58 125543.23 - -Group Co. Ltd.
329 / 3522024 Annual Report 330
Accounts Hengli Engine
receivable (Dalian) Co. 18850.00 942.5 - -Ltd.Hengli Marine
Accounts Outfitting
receivable (Dalian) Co. 796332.50 39816.63 - -
Ltd.Accounts Jiangsu Dehua
receivable Textile Co. Ltd. 7274.42 363.72 - -
Accounts Jiangsu Deshun
receivable Textile Co. Ltd. 4754.00 237.7 - -
Accounts Hengli Real
receivable Estate (Dalian) 733655.04 36682.75 - -Co. Ltd.Accounts Dalian Hengli
receivable Hotel Co. Ltd. 135765.00 6788.25 - -
Suzhou Gufeng
Prepayments AssetManagement 424878.00 - 463848.00 -
Co. Ltd.Prepayments Jiangsu BoyadaTextile Co. Ltd. 207250.00 - 61852.60 -
Jiangsu Wuzhou
Prepayments Bay HengliInternational 1242.00 - - -
Hotel Co. Ltd.Hengli
Other Equipment
non-current Manufacturing - - 58193106.40 -
assets (Dalian) Co.Ltd.
(2). Payable to related parties
√适用□不适用
Unit: Yuan Currency: RMB
Item Related party Book balance at year Book balance in beginning
end of year
Jiangsu Peijie Textile
Notes Payable Intelligent 129040.40 -
Technology Co. Ltd.Suzhou Hengli
Notes Payable Intelligent 253053.07 -
Technology Co. Ltd.Suzhou Hengli
Accounts payable System Integration 343454.32 1976292.16
Co. Ltd.Suzhou Hengli
Accounts payable Intelligent 7300.88 3780885.78
Technology Co. Ltd.Accounts payable Jiangsu ChangshunTextile Co. Ltd. 97788.73 97788.73
330 / 3522024 Annual Report 331
Accounts payable Jiangsu Dehua TextileCo. Ltd. - 118888.47
Dalian Kangjia
Accounts payable Property Services Co. - 1638364.17
Ltd.Hengli (Guizhou)
Accounts payable Textile Intelligent 185084.08 -
Technology Co. Ltd.Sichuan Hengli
Accounts payable Intelligent Textile 1712603.64 4683521.59
Technology Co. Ltd.Accounts payable Guangdong SongfaCeramics Co. Ltd. - 75313.20
Hengli Green Building
Accounts payable Materials (Dalian) - 431375.00
Co. Ltd.Hengli Equipment
Accounts payable Manufacturing - 13651844.32
(Dalian) Co. Ltd.
Accounts payable Jiangsu DeshunTextile Co. Ltd. 4207.08 805787.54
Jiangsu Peijie Textile
Accounts payable Intelligent 413389.48 354575.16
Technology Co. Ltd.Suzhou Wujiang
Accounts payable Tongli Lake Tourism - 2168.00
Resort Co. Ltd.Dalian Victoria
Accounts payable Property Services Co. 30000.00 -
Ltd.Hengli Marine
Accounts payable Engineering (Dalian) 1973991.36 -
Co. Ltd.Accounts payable Hengli Shipbuilding(Dalian) Co. Ltd. 4880000.00 -
Accounts payable Nantong DejiConcrete Co. Ltd. 4635078.69 -
Suqian Bailong
Accounts payable Garden Technology 666221.00 -
Co. Ltd.Other payable Dalian HenghanInvestment Co. Ltd. - 19750000.00
Sichuan Hengli
Other payable Intelligent Textile - 21518410.47
Technology Co. Ltd.Hengli Green Building
Other payable Materials (Dalian) 773608.53 303113.23
Co. Ltd.Hengli Industrial
Lease liabilities Investment (Suzhou) - 123005.88
Co. Ltd.
331 / 3522024 Annual Report 332
(3). Other Projects
√适用□不适用
Unit: Yuan Currency: RMB
Item Related party Book balance at year Book balance in beginning
end of year
Contract liabilities Jiangsu BoyadaTextile Co. Ltd. 174513.90 431840.13
Contract liabilities Wujiang HuajunTextile Co. Ltd. 4.19 730.78
Contract liabilities Jiangsu DeshunTextile Co. Ltd. 450204.06 904053.54
Jiangsu Peijie Textile
Contract liabilities Intelligent 1672716.23 896212.56
Technology Co. Ltd.Contract liabilities Jiangsu Dehua TextileCo. Ltd. 711370.27 639776.71
Contract liabilities Hengli (Suzhou)Textile Sales Co. Ltd. - 68538.08
Contract liabilities Hengli Shipbuilding(Dalian) Co. Ltd. 17264023.78 803787.59
Hengli (Guizhou)
Contract liabilities Textile Intelligent 4386015.11 1801538.53
Technology Co. Ltd.Contract liabilities Hengli Engine(Dalian) Co. Ltd. 320551.50 170678.94
Hengli Marine
Contract liabilities Engineering (Dalian) 30774.97 32499.58
Co. Ltd.Hengli Precision
Contract liabilities Casting (Dalian) Co. 91711.24 535643.86
Ltd.Hengli Green Building
Contract liabilities Materials (Dalian) 633076.15 359421.83
Co. Ltd.Hengli Equipment
Contract liabilities Manufacturing 9382.88 281934.39
(Dalian) Co. Ltd.
Sichuan Hengli
Contract liabilities Intelligent Textile 9894599.76 213114.73
Technology Co. Ltd.
7. Commitments with related party
□适用√不适用
8. Others
□适用√不适用
332 / 3522024 Annual Report 333
XV. Share-based Payment
1. Information about share-based payments
□适用√不适用
Stock options or other equity instruments issued to the public at the end of the period
□适用√不适用
2. Equity-settled share-based payments
√适用□不适用
Unit: Yuan Currency: RMB
Method in determining the fair value of equity
instruments at the date of grant -
Important parameters for the fair value of equity
instruments on the grant date -
Basis in determining the quantity of exercisable It is expected that the on-the-job employees will
equity instruments eventually obtain the corresponding benefits ofthe employee share incentive plan
Reasons for the significant difference between the
current estimate and the previous estimate None
Accumulated amount recorded in capital reserve
for equity-settled share-based payments 448519226.28
Other notes:
None
3. Information on cash-settled share-based payments
□适用√不适用
4. Share-based payment expenses in the current period
√适用□不适用
Unit: Yuan Currency: RMB
Grant object category Share-based payment expenses Share-based payment expenses
settled in equity settled in cash
Company employees 77070049.38 -
Total 77070049.38 -
Other notes
None
5. Information on modification and termination of share-based payment
□适用√不适用
6. Others
□适用√不适用
333 / 3522024 Annual Report 334
XVI.Commitments and contingencies
1. Significant commitments
√适用□不适用
Important external commitments nature and amount on the balance sheet date
1) Signed external investment contracts that have not yet been performed or have not been fully
performed and related financial expenditures
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Commitment to purchase and
build long-term assets 1209635646.74 5245473299.61
Unused letter of credit issued 4992331472.87 4736563964.70
Letter of guarantee not due
for payment 79832353.83 81303948.76
Total 6281799473.44 10063341213.07
2) Leases that the lessee has committed but not started and their financial impact
Unit: Yuan Currency: RMB
Item Closing balance
Undiscounted lease payments: -
1 year after balance sheet date 68662160.87
2 years after balance sheet date 50668019.87
3 years after balance sheet date 41556715.05
Thereafter 262986745.94
Total 423873641.73
2. Contingencies
(1). Important contingencies existing on the balance sheet date
□适用√不适用
(2). If the company has no important or contingencies that need to be disclosed it should also
explain:
□适用√不适用
3. Others
√适用□不适用
1．Contingent liabilities arising from pending litigation or arbitration and their financial impact
The Company has no contingent liabilities arising from pending litigation or arbitration.
2．Contingent liabilities arising from debt guarantees provided to other entities and their
financial implications
The Company does not provide any debt guarantee for other units.
334 / 3522024 Annual Report 335
3．Other contingent liabilities and their financial impact
For details of bank acceptance bills that have been discounted or endorsed and have not maturedon the balance sheet date please refer to the “Notes to Consolidated Financial Statements Items —Receivables Financing”.XVII. Post-balance sheet events
1. Significant non-adjusting items
□适用√不适用
2. Profit distribution
√适用□不适用
Unit: Yuan Currency: RMB
Proposed dividend per 10 shares (Yuan) 4.5
Dividend per 10 shares declared and approved
for distribution (Yuan) 4.5
Profit distribution plan The 26th meeting of the 9th Board of Directors of the
company deliberated and approved the proposed
profit distribution plan for 2024: based on the total
share capital on the date of equity distribution and
registration a cash dividend of RMB 4.50 (including
tax) per 10 shares will be distributed to all
shareholders.
3. Sales returned
□适用√不适用
4. Other post-balance sheet events
□适用√不适用
XVIII. Other important matters
1. Correction of prior accounting errors
(1). Retrospective restatement method
□适用√不适用
(2). Prospective application method
□适用√不适用
2. Debt restructuring
□适用√不适用
335 / 3522024 Annual Report 336
3. Asset Replacement
(1). Non-monetary asset exchange
□适用√不适用
(2). Other asset replacement transactions
□适用√不适用
4. Annuity Plan
□适用√不适用
5. Discontinuation of Operations
□适用√不适用
6. Segment Information
(1). Basis for determining the reporting segment and accounting policies
√适用□不适用
According to the Company's internal organizational structure management requirements and
internal reporting system the Company mainly operates in three business segments: petrochemical
business segment polyester business segment headquarters and other business segments the
Company's management evaluate the operating results of these segments to determine the allocation
of resources and evaluate their performance.Segment report information is disclosed based on the accounting policies and measurement
standards adopted by each segment when reporting to management. These measurement bases are
consistent with the accounting and measurement bases used in the preparation of financial
statements.
(2). Financial information of the reporting segment
√适用□不适用
Unit: ten-thousand-yuan Currency: RMB
Item Petrochemica Polyester Headquarters Elimination Total
l segment segment and other between
business segments
segment
Segment revenue 24484939.3 4430846.0 12353589.0 -17629316.7 23640057.6
20442
Including: External 12513640.0 4412641.1 6713776.52 - 23640057.6revenue 0 0 2
Inter-segmen 11971299.3
t sales 2 18204.90 5639812.52
-17629316.7
4-
Segment cost 22728370.7 4023216.3 12165242.4 -17618496.3 21298333.1
18128
Segment profit (loss) 610596.61 163509.20 313277.22 -205404.46 881978.57
Total assets 20983192.0 7135045.5
686234201.37-7044152.02
27308286.9
9
Total liabilities 15386938.6 5724139.6
292212969.76-2357517.37
20966530.7
0
336 / 3522024 Annual Report 337
(3). If the company has no reportable segment or cannot disclose the total assets and total liabilities
of each reportable segment the reasons shall be explained
□适用√不适用
(4). Other notes
□适用√不适用
7. Other important transactions and events affecting investors' decision-making
√适用□不适用
1. Pledge of the Company’s shares by the parent Company and the ultimate controller Chen
Jianhua and Fan Hongwei’s family
Pledgor Pledgee Pledge period Number of
pledged shares
Hengneng Investment
(Dalian) Co. Ltd. Industrial Bank International Trust Co. Ltd. 2024/1/8-2025/1/7 287000000.00
Hengli Group Co. Ltd. China Everbright Bank Co. Ltd. Suzhou 2024/1/5-2026/12/2Branch 5 30000000.00
Hengli Group Co. Ltd. China Construction Bank Corporation 2024/2/28-2031/2/2Wujiang Shengze Branch 7 38000000.00
Agricultural Bank of China Limited Suzhou
Hengli Group Co. Ltd. Yangtze River Delta Integration 2024/1/26-2026/3/1 328000000.00
Demonstration Area Branch 1
Hengli Group Co. Ltd. China Construction Bank Corporation 2024/5/27-2031/2/2Wujiang Shengze Branch 7 630000000.00
Hengli Group Co. Ltd. Hua Xia Bank Co. Ltd. Suzhou Branch 2024/11/6-2027/10/31 142000000.00
Hengneng Investment
(Dalian) Co. Ltd. CITIC Securities Co. Ltd. 2024/1/4-2027/1/4 240000000.00
Hengneng Investment
(Dalian) Co. Ltd. China Galaxy Securities Co. Ltd. [Note] 44982000.00
Hengneng Investment
(Dalian) Co. Ltd. Essence Securities Co. Ltd. [Note] 18786200.00
Hengneng Investment
(Dalian) Co. Ltd. Huatai Securities Co. Ltd. [Note] 36770500.00
Hengneng Investment
(Dalian) Co. Ltd. GF Securities Co. Ltd. [Note] 35061000.00
Hengneng Investment
(Dalian) Co. Ltd. SDIC Securities Co. Ltd. [Note] 21477800.00
Hengli Group Co. Ltd. CITIC Bank Financial Management Co. Ltd. [Note] 13500000.00
Hengneng Investment
(Dalian) Co. Ltd. CITIC Securities Co. Ltd. [Note] 62000000.00
[Note] The share pledge of Hengli Group is mainly used to provide pledge guarantee for the trust
plan established by employees of Hengli Group and its related subsidiaries. The specific pledge
expiration date is subject to the actual pledge cancellation registration procedures.
8. Others
□适用√不适用
337 / 3522024 Annual Report 338
XIX.Notes on important items of parent company's financial statements
1. Accounts receivable
(1). Disclosure by aging
√适用□不适用
Unit: Yuan Currency: RMB
Aging Closing balance Beginning balance
Within one year
Including: Within one year
Within one year 869420.04 1270363.60
Subtotal of within one year 869420.04 1270363.60
1 to 2 years
2 to 3 years
Over 3 years
3 to 4 years
4 to 5 years
Over 5 years
Total 869420.04 1270363.60
(2). Disclosure by bad debt provision method
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Book balance Provision for Provision for
categ bad debts
Book balance
Carryi bad debts Carryin
ory Provi ng Provi g
Amou Proporti Amou sion amou Amount Proporti Amou sion amountnt on(%) nt ratio nt on(%) nt ratio
(%)(%)
Provis
ion
for
bad
debts
on
indivi
dual
basis
Including:
Provis
ion
for
bad 86942 100.00 4347 82594 12703 6351 12068
debts 0.04 1.00
5.009.0463.60100.008.185.0045.42
on
portf
338 / 3522024 Annual Report 339
olio
basis
Including:
Aging
analy
sis 86942 100.00 4347 5.00 82594 12703 100.00 6351 12068
portf 0.04 1.00 9.04 63.60 8.18
5.0045.42
olio
86942
0.04100.00
43475.0082594127036351120681.009.0463.60100.008.185.0045.42
Provision for bad debts on individual basis:
□适用√不适用
Provision for bad debts on portfolio basis:
√适用□不适用
Provision on portfolio basis: Aging portfolio
Unit: Yuan Currency: RMB
Closing
Name
Acounts receivable Provision for bad debts Provision ratio (%)
Aging analysis
portfolio 869420.04 43471.00 5.00
Total 869420.04 43471.00 5.00
Notes for bad debt provision on portfolio basis:
□适用√不适用
Accrual provision for bad debts based on the general model of expected credit losses
□适用√不适用
Basis for dividing each stage and proportion of bad debt provision
None
Explanation of significant changes in the book balance of accounts receivable due to changes in
provisions for losses incurred during the current period:
□适用√不适用
(3). Provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
Movement in the year
Category Beginning Closingbalance Accrual Recovery or Transfer or Other balancereversal written-off movement
Provision for
bad debts on
individual - - - - - -
basis
Provision for 63518.18 -20047.18 - - - 43471.00
339 / 3522024 Annual Report 340
bad debts on
portfolio basis
Total 63518.18 -20047.18 - - - 43471.00
The significant amount of provision for bad debts recovered or reversed in the current period:
□适用√不适用
Other notes:
None
(4). Accounts receivable written-off during the year
□适用√不适用
The important write-off of accounts receivable:
□适用√不适用
Notes for write-off of accounts receivable:
□适用√不适用
(5). Accounts receivable due from the top five debtor
√适用□不适用
The Company’s top five year-end balances for accounts receivable in total of RMB 869420.04
accounting for 100.00% of the total account balance of year-end balances of accounts receivable and
the corresponding year-end balance of provision for bad debts is RMB 43471.00.Other notes:
None
Other notes:
□适用√不适用
2. Other receivables
Presented by item
√适用□不适用
Unit: Yuan Currency: RMB
Item Closing balance Beginning balance
Interest receivable
Dividends receivable 198989881.02 81550000.00
Other receivables 136847310.02 83181382.20
Total 335837191.04 164731382.20
Other notes:
□适用√不适用
Interest receivable
(1). Interest receivable by category
□适用√不适用
340 / 3522024 Annual Report 341
(2). Significant overdue interest
□适用√不适用
(3). Disclosure by bad debt provision method
□适用√不适用
Provision for bad debts on individual basis:
□适用√不适用
Notes for provision for bad debts on individual basis:
□适用√不适用
Provision for bad debts on portfolio basis:
□适用√不适用
(4). Provision for bad debts based on the general model of expected credit losses
□适用√不适用
Basis dividing each stage and proportion of provision for bad debts:
None
Explanation of significant changes in the book balance of interest receivable due to changes in
provisions for losses incurred during the current period:
□适用√不适用
(5). Provision for bad debts
□适用√不适用
The significant amount of provision for bad debts recovered or reversed in the current period:
□适用√不适用
Other notes:
None
(6). Interest receivable written-off during the year
□适用√不适用
The important write-off of Interest receivable:
□适用√不适用
Write-off Instructions:
□适用√不适用
Other Notes:
□适用√不适用
341 / 3522024 Annual Report 342
Dividends receivable
(1). Dividends receivable
√适用□不适用
Unit: Yuan Currency: RMB
Item (or Investee) Item (or Investee) Item (or Investee)
Subtotal of book balance 198989881.02 81550000.00
Less: Provision for bad debts - -
Total 198989881.02 81550000.00
(2). Significant dividends receivable aged over 1 year
□适用√不适用
(3). Disclosure by bad debt provision method
□适用√不适用
Provision for bad debts on individual basis:
□适用√不适用
Notes for provision for bad debts on individual basis
□适用√不适用
Provision for bad debts on portfolio basis:
□适用√不适用
(4). Provision for bad debts based on the general model of expected credit losses
□适用√不适用
Basis for dividing each stage and proportion of provision for bad debts:
None
Explanation of significant changes in the book balance of dividends receivable due to changes in
provisions for losses incurred during the current period:
□适用√不适用
(5). Provision for bad debts
□适用√不适用
The significant amount of provision for bad debts recovered or reversed in the current period:
□适用√不适用
Other notes:
None
(6). Dividends receivable written-off during the year
□适用√不适用
The important write-off of dividends receivable:
342 / 3522024 Annual Report 343
□适用√不适用
Write-off Instructions:
□适用√不适用
Other notes:
□适用√不适用
Other receivables
(1). Disclosure by aging
√适用□不适用
Unit: Yuan Currency: RMB
Aging Aging Aging
Within one year
Including: Within one year
Within one year 72674351.95 87047433.89
Subtotal of within one year 72674351.95 87047433.89
1 to 2 years 84308044.59 607900.00
2 to 3 years 600400.00 -
Over 3 years
3 to 4 years
4 to 5 years -
Over 5 years -
Total 157582796.54 87655333.89
(2). Disclosure by nature
√适用□不适用
Unit: Yuan Currency: RMB
Nature Book balance at year end Book balance in beginning of
year
Current accounts - 3500000.00
Deposits and security deposits 2900.00 10400.00
Others 157579896.54 84144933.89
Total 157582796.54 87655333.89
(3). Information of provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
First stage Second stage Third stage
Provision for bad Expected credit Expected credit loss Expected credit loss
debts loss within next for lifetime (no for lifetime (credit Total
12 months credit impairment impairment has
occurred) occurred)
Balance of 1
January 2024 4473951.69 - 4473951.69
Balance of 1
January 2024
343 / 3522024 Annual Report 344
during the period
--transfer to
second stage
--transfer to third
stage
--Reverse to
second stage
--Reverse to first
stage
Provision for the
year 16261534.83 - 16261534.83
Reversal in the
year
Transfer in the
year
Write-off in the
year
Other movement
Balance of 31
December 2024 20735486.52 - 20735486.52
Basis for dividing each stage and proportion of bad debt provision:
The basis for dividing each stage is detailed in the note "Impairment of Financial Instruments".Explanation of significant changes in other receivables book balance that have changed the loss
provision in the current period:
√适用□不适用
No significant changes occurred in the provision for losses in the current period.Basis for accruing bad debt provision for the current period and assessing whether the credit risk of
financial instruments has increased significantly:
√适用□不适用
The basis input values assumptions and other information used to determine the provision for bad
debts amount and the assessment of whether the credit risk of financial instruments have increased
significantly since initial confirmation are detailed in the note “Credit Risk”.
(4). Provision for bad debts
√适用□不适用
Unit: Yuan Currency: RMB
Movement in the year
Category Beginning Recovery Transferbalance Accrual or or Other
Closing balance
reversal written-off movement
Provision
for bad - - - - - -
debts on
344 / 3522024 Annual Report 345
individual
basis
Provision
for bad
debts on 4473951.69 16261534.83 - - - 20735486.52
portfolio
basis
Total 4473951.69 16261534.83 - - - 20735486.52
The significant amount of provision for bad debts recovered or reversed in the current period:
□适用√不适用
Other notes:
None
(5). Other receivables actually written-off during the year
□适用√不适用
The write-off of important ther receivables:
□适用√不适用
Notes to write-off of other receivables:
□适用√不适用
(6). Other receivables due from the top five debtors
√适用□不适用
The Company’s top five year-end balances of other receivables in total is RMB 157582796.54
accounting for 100.00% of the total year end balance of other receivables and the corresponding
year-end balance of provision for bad debts is RMB 20735486.52.
(7). Other receivables reported due to centralized management of funds
□适用√不适用
Other notes:
□适用√不适用
3. Long-term equity investment
√适用□不适用
Unit: Yuan Currency: RMB
Closing balance Beginning balance
Provision Provision
Item
Book balance for Carryingimpairm amount Book balance
for Carrying
impairm amount
ent ent
Investme
nt in 4442227570 - 4442227570 4436627570 4436627570subsidiar 4.93 4.93 4.93 - 4.93
ies
345 / 3522024 Annual Report 346
Investme
nt in
associate
s and
joint
ventures
Total 44422275704.93 -
44422275704436627570-44366275704.934.934.93
(1). Investment in subsidiaries
√适用□不适用
Unit: Yuan Currency: RMB
Beginni Movement in the year
ng Ending
Beginning balance
balance
of Additiona Reduce Provisio
Closing of
Investee balance l n for Oth balance provisio
(book value) provision for investme
invest
ment impair ers
(book value) n for
impair
impair nt ment
ment ment
Suzhou
Fangtuan.com 2000000.0 2000000.0
E-comme 0 - - 0 -
rce Co.Ltd.Jiangsu
Hengli
Chemical 10808919 - 10808919
Fiber Co. 000.00 000.00
Ltd.Kanghui
New
Material 19376010 - 19376010Technolo 65.09 65.09
gy Co.Ltd.Hengli
Petroche
mical 5000000 50000000.Trading 0.00 00
Co. Ltd.Hengli
Internatio
nal 50000000. - 50000000.Trading 00 00
Co. Ltd.Hengli
Petroche
mical 17516472 - 17516472
(Dalian) 093.22 093.22
Refining
346 / 3522024 Annual Report 347
and
Chemical
Co. Ltd.Hengli
Petroche
mical 50000000. - 50000000.Sales Co. 00 00
Ltd.Hengli
Petroche
mical 46197197 46197197
(Dalian) 82.89 - 82.89
Chemical
Co. Ltd.Hengli
Investme
nt 93815637 - 93815637
(Dalian) 63.73 63.73
Co. Ltd.Hengli
Dalian
Materials 6000000 6000000.0
Research .00 - 0 -
Institute
Co. Ltd.Total 44366275 - 5600000 - 44422275704.93 0.00 704.93 -
(2). Investment in associated and joint ventures
□适用√不适用
(3). Impairment test of long-term equity investments
□适用√不适用
Other notes:
None
4. Operating income and operating cost
(1). Operating income and operating cost
√适用□不适用
Unit: Yuan Currency: RMB
Current year Prior year
Item
Revenue Cost Revenue Cost
Primary operations 548767228.58 - - -
Other operations 5034915.62 3031978.73 3454179.12 2011877.89
Total 553802144.20 3031978.73 3454179.12 2011877.89
347 / 3522024 Annual Report 348
(2). Information of operating income and operating cost
□适用√不适用
Other notes:
□适用√不适用
(3). Note on performance obligations
□适用√不适用
(4). Description of apportionment to remaining performance obligations
□适用√不适用
(5). Major contract changes or major transaction price adjustments
□适用√不适用
Other notes:
None
5. Investment income
√适用□不适用
Unit: Yuan Currency: RMB
Item Current year Prior year
Income from long-term equity
investment by cost method 1820989881.02 1521000000.00
Income from long-term equity
investment by equity method
Gain from disposal of long-term equity
investment
Investment income of financial assets
held for trading during the holding
period
Investment income of other equity
instruments investment during the
holding period
Interest income from debts investment
during the holding period
Interest income from other debt
investments during the holding period
Gain from disposal of Financial assets
held for trading
Investment income from disposal of
other equity instruments investment
Gains from disposal of debts investment
Gain from disposal of other debt
investments
Gains from debt restructuring
Total 1820989881.02 1521000000.00
Other notes:
348 / 3522024 Annual Report 349
None
6. Others
√适用□不适用
None
XX. Supplementary Information
1. Statement of non-recurring gains and losses for the current period
√适用□不适用
Unit: Yuan Currency: RMB
Item Amount Note
Gain or loss on disposal of non-current assets 1912150.11
Government grants that are included in the profit
or loss (closely related to the business of the
enterprise except for government grants that are 1775850371.26
subject to fixed or quantitative quotas in
accordance with national unified standards)
In addition to the effective hedging business
related to the normal business operations of the
same company the profit or loss from changes in
fair value of financial assets and financial 279690101.01
liabilities held by non-financial enterprises as
well as the profit or loss from the disposal of
financial assets and financial liabilities
Fund occupation fees charged to non-financial
enterprises included in the current profit or loss -
Profit or loss of entrusting others to invest or
manage assets -
Profit or loss from external entrusted loans -
Provision for impairment arising from force
majeure such as natural disasters -
Reversal of impairment provision for receivables
that have been individually tested for impairment -
The investment cost of the enterprise's
acquisition of subsidiaries associates and joint
ventures is less than the return generated by the -
fair value of the investee's identifiable net assets
when the investment is made.Net profit of subsidiaries for the period from
beginning of the year to date of acquisition by -
business combination under common control
Non-monetary assets exchange profit or loss -
Profit or loss of debt restructuring -
One-time expenses incurred by enterprises due to
the discontinuation of related business activities -
such as the expenditure for resettling employees
One-time impact on current profit or loss due to
adjustments in tax accounting and other laws -
and regulations
Share-based payment expenses recognized in one -
349 / 3522024 Annual Report 350
time due to cancellation or modification of equity
incentive plans
For cash-settled share-based payments after the
vesting date the profit or loss arising from the
change in the fair value of employee -
compensation payable
Profit or loss arising from changes in fair value of
investment real estate subsequently measured -
using the fair value model
Gains from transactions with unfair transaction
prices -
Profit or loss arising from contingencies unrelated
to the company's normal business operations -
Income from custody fees obtained from
entrusted operation -
Other non-operating income and expenses other
than the above items 270908669.80
Other profit or loss items that meet the definition
of non-recurring profit or loss 2517138.63
Less: Income tax impact 496342519.52
Impact amount of minority shareholders'
equity (after tax) 42.95
Total 1834535868.34
If the company recognizes items not listed in the "Explanatory Announcement No. 1 on Information
Disclosure by Companies that Offer Securities to the Public - Non-recurring Gains or Losses" as
non-recurring gains or losses with significant amounts and defines the non-recurring gains or losses
listed in the "Explanatory Announcement No. 1 on Information Disclosure by Companies that Offer
Securities to the Public - Non-recurring Gains or Losses" as recurring gains or losses the reasons should
be explained.□适用√不适用
Other notes:
□适用√不适用
2. Return on equity and earnings per share
√适用□不适用
Weighted average Earnings per share
Profit in reporting period return on equity Basic earnings per Diluted earnings per
(%) share share
Net profit attributable to the
company's common 11.48 1.00 1.00
shareholders
Net profit attributable to the
company's common
shareholders after deducting 8.49 0.74 0.74
non-recurring gains and losses
3. Differences in accounting data under domestic and foreign accounting standards
□适用√不适用
350 / 3522024 Annual Report 351
4. Others
□适用√不适用
Chairman: Fan Hongwei
Date of submission approved by the Board of Directors: April 17 2025
Revised information
□适用√不适用
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