Full text of 2024 Annual Report
Rongsheng Petrochemical Co. Ltd.2024 Annual Report
[Disclosure Time]
Full Text of 2024 Annual Report
Steady Progress Breaking Waves
——A Letter to investors
Distinguished investors
Winds rise over the East Sea while tremendous boats sailing tides surge at Qiantang River
while everything appeared renewing. As the mighty Qiantang River surges forward we present this
letter—imbued with gratitude and commitment—to extend our sincerest homage to investors
worldwide! Looking back at 2024 we have forged ahead on the path of industrial upgrading pursued
excellence in quality-efficiency enhancement scaled new heights in technological innovation and
remained true to our mission of value creation. Amid the undulating waves of the global economy
we have walked in lockstep with our shareholders. We have deciphered industry pulses with global
vision anchored development in industrial heritage pioneered growth frontiers through innovation
and ensured sustainable growth via prudent operations thus co-authoring a new chapter of high-
quality development.Only by braving the waves do we comprehend the vastness of the world; Only by
persevering as we began can we advance with courage. Rising with the tide of China’s reform and
opening-up Rongsheng Petrochemical has anchored its core business with thirty years of unwavering
focus: Upstream tracking: It forges global leadership in PX and PTA production through concentrated
breakthroughs; Downstream expansion: It leverages mega-refining platforms to establish strategic
strongholds in new energy materials and high-end polyolefins and holds pivotal positions across
global markets for polyester new energy materials engineering plastics and high-value-added
polyolefins. “From a drop of oil to everything in the world” the Company has woven an
interconnected industrial matrix through vertical integration and horizontal expansion. The Company
leads the industry through mega-plant scale advantages that maximize resource efficiency; achieves
upstream-downstream integration for market-responsive production flexibility; reduces oil and
increases chemicals promotes the upgrading project of ZPC refining and chemical integration
realizes the “full hydrogenation” process route of the refinery improves the product structure
adjustment ability and forges the rock-solid industrial chain resilience and risk resistance in the
industry cycle.In 2024 against the backdrop of gradual global economic recovery we deepened our main
Full Text of 2024 Annual Report
business operations and consolidated our global market leadership through steadfast execution.Rongsheng Petrochemical achieved an annual revenue of RMB 326.475 billion with total assets
exceeding RMB 377.846 billion – sustaining growth momentum with solid performance. We have
upheld compliant operations as the lifeline of our corporate development and consistently
implemented risk management in the whole business and process so as to lay a solid foundation for
standardized operation and ensured sustainable progress guided by compliance. In 2024 theCompany’s brand value reached new heights earning No. 6 in the “World’s Most Valuable ChemicalBrands” No. 6 in the “Chemical Week’s Billion-Dollar Club” No. 8 in the “Top 100 Global ChemicalCompanies” solidifying its position as an industry leader with formidable capabilities.Embracing all rivers to connect the world advancing hand in hand toward a new journey.Amid reshaped global energy landscapes and industrial chain circulation Rongsheng Petrochemical
is strategizing with a global vision and advancing a new paradigm of international cooperation. In
2023 Saudi Aramco’s strategic acquisition of 10% plus one share of Rongsheng Petrochemical’s
total equity laid the cornerstone for deep bilateral cooperation. In 2024 such cooperation yielded
further milestones with multiple agreements including Memorandum of Understanding Cooperation
Framework Agreement Joint Development Framework Agreement under which Saudi Aramco
planned to acquire 50% equity in Rongsheng Petrochemical’s wholly-owned subsidiary Zhongjin
Petrochemical (located in Ningbo) and participate in its expansion; at the same time Rongsheng
Petrochemical planned to acquire 50% equity in SASREF Refinery a wholly-owned subsidiary of
Saudi Aramco in Jubail Saudi Arabia and participate in its expansion. This “powerful alliance”
achieves the advance of raw material supply and the expansion of global sales channels promotes
resource sharing and industrial chain coordination and jointly builds an industrial ecology with
mutual benefits and win-win situation. As a practitioner of the “Belt and Road Initiative” Rongsheng
Petrochemical driven by the dual drivers of “going out” and “attracting investment” has established
a strategic fulcrum in the Middle East laid out a supply chain network around the Indian Ocean and
attracted international strategic funds to invest in China for long term injecting continuous vitalityfor its prosperous development. Adhering to the grand vision of “Based in China and advancing withthe world” Rongsheng Petrochemical is setting a model benchmark for transnational cooperation
with “win-win thinking” and building a golden bridge connecting the world.Whale swims thousands of miles with poise and big bird hovers above the clouds at ease.Full Text of 2024 Annual Report
Aligning with national strategic priorities and industrial upgrading trends Rongsheng Petrochemicalintensifies its innovation-driven development strategy. Through the strategy of “strengthening andsupplementing the industrial chain” the Company has made breakthroughs in key core technologies
constantly climbed the industrial ladder anchored strategic tracks such as new energy materials
engineering plastics high-performance resins and high-end new materials and deployed a batch of
new material products and important upstream raw materials such as POE nylon 66 ABS
polycarbonate PMMA UHMWPE synthetic rubber and special polyester so as to promote the
extension of the industrial chain to high added value. In 2024 ZPC’s α-olefin plant achieved a
breakthrough in 1-octene production via ethylene oligomerization eliminating reliance on foreign
technology and laying the foundation for fully integrated POE production chains; Concurrently its
large-scale production of rare-earth butadiene rubber marked a pioneering green technology
breakthrough for China’s tire industry; Meanwhile its Jintang New Materials Project progressed as
planned focusing on low-carbon olefins and green and eco-friendly industries to draw a new blueprint
for high-performance materials. With the commissioning of several new facilities such as PPG
multifunctional polyester chips and polymer polyols its product matrix is becoming more and more
refined. Rongsheng Petrochemical soars on the wings of innovation wielding its brush across the
grand scroll of industrial transformation to anchor development at new coordinates of qualitativeleaps and contributing Rongsheng’s strength into China’s historic transition from a “petrochemicalpower” to a “petrochemical superpower”.Advancing green transformation to forge new quality productivity empowering the future
through digital intelligence. Amid China’s “carbon peaking and carbon neutrality” strategy
implementation green and digital transformations are emerging as transformative forces reshapingthe petrochemical landscape. Seizing this historic opportunity under the guidance of “DigitalEmpowerment Green Leadership” Rongsheng Petrochemical is building an innovative production
system of “Smart Manufacturing - Low Carbon Operations - Sustainable Development” to drive
industrial upgrading and achieve leapfrog development. As an early adopter of high-end industrial
automation line equipment in China Shengyuan Chemical Fiber has revitalized traditional production
lines through digital transformation achieving cost reduction and efficiency improvement via process
optimization and workflow reengineering and establishing “lights-out factories” with full robotic
automation. Through the intelligent control system throughout the entire industrial chain ZPC
Full Text of 2024 Annual Report
deploys real-time monitoring and dispatching of millions of instruments. At the same time AI+ big
data technology helps to optimize production improve operational efficiency in all links of theindustrial chain and explore multi-dimensional profit growth points. In response to China’s “carbonpeaking and carbon neutrality” goals Rongsheng Petrochemical leads the industry in carbon
management practices elevating its MSCI ESG rating to BBB (ranking among global petrochemical
leaders) with core metrics like carbon emissions and water resource management reaching
international leading position. For four consecutive years The Company has been included in the
Hang Seng A-Share Sustainability Index and awarded “2024 Best ESG-Managed Listed Company”.With innovation-driven technology intelligent production lines and green industrial transformation
Rongsheng Petrochemical is inspiring high-quality development with “green principles” while
reshaping the industry’s future through technological innovation.Investor-centric values trust forged through sincerity. Amid profound global industrial chain
restructuring and evolving market dynamics Rongsheng Petrochemical remains steadfast in its
founding commitment to “growing with its shareholders” delivering long-term sustainable value for
its shareholders. From 2022 to 2024 the Company executed the three-phase share repurchase plan
and repurchased 553 million shares (accounting for 5.46% of total equity) totaling RMB 6.988 billion.In 2024 the controlling shareholder conducted two-stage share acquisitions amountingapproximately RMB 1.693 billion accumulatively to demonstrate confidence through “tangiblecapital commitment”; For 15 consecutive years since IPO the Company has maintained a stable cash
dividend policy and the cash dividend has never stopped. In the past three years its proportion of
cash dividend/net profit attributable to the parent company has reached 64.93% honoring return
promises through action. Always with “Gratitude” and “Responsibility” we will remain committed
to co-developing with investors and sharing achievements continuously enhancing our capabilities
in value creation value management and value realization striving to deliver exceptional returns to
shareholders.Braving the azure waves we stand at the tide’s forefront; Hoisting cloud-like sails we start
a new voyage. In 2025 Rongsheng Petrochemical ushers its 30th anniversary. With three decades of
concerted efforts Rongsheng Petrochemical has transformed from a “industry trailblazer” to a “globalpioneer”. We firmly believe long-termism is the ultimate key to navigating economic cycles and
achieving sustainable growth. At present with the global chemical production capacity restructuring
Full Text of 2024 Annual Report
and China’s “Two New” and “Two Major” policies to expand the scope it promotes the optimization
and upgrading of the petrochemical industry structure with the downstream demand gradually
recovering and supports a series of measures for the private economy to improve quality and
efficiency steadily transforming into the firm development confidence of enterprise. On this new
voyage Rongsheng Petrochemical will remain steadfast in its founding mission as a long-term
industrial practitioner unwaveringly pursue high-quality development through integrated
development to forge resilience high-end product portfolios to seize opportunities global
partnerships to expand frontiers green transformation to activate growth and intelligent upgrades to
reduce costs and increase efficiency. Anchoring permanence amid uncertainty pioneering new
horizons through change with the wisdom of “voyager” and the courage of “wave-breaker”
Rongsheng Petrochemical will work with all shareholders and partners who trust and support our
development sailing together toward majestic peaks and prosperous future!
Board of Directors of Rongsheng Petrochemical Co. Ltd.April 2025
Full Text of 2024 Annual Report
Section I Important Notice Table of Contents and Definitions
The Board of Directors the Board of Supervisors and the directors
supervisors and senior management of the Company warrant that the contents in
this annual report are true accurate and complete and have no false
representations misleading statements or material omissions and they will
severally and jointly accept legal responsibility for such contents.Li Shuirong Chairman of the Company Wang Yafang the person in charge
of the Company’s accounting and Zhang Shaoying the person in charge of the
Accounting Firm (Accounting Officer) hereby make representations in respect of
the truthfulness accuracy and completeness of the financial statements in this
annual report.All directors have attended the 2024 annual board meeting to deliberate on
the report.In case of any discrepancy between this version and Chinese version the
Chinese version shall prevail.
1 / 276 Full Text of 2024 Annual Report
Contents
Section I Important Notice Table of Contents and D... 1
Section II Company Profile and Key Financial Indic... 5
Section III Management Discussion and Analysis ...... 9
Section IV Corporate Governance .................... 63
Section V Environmental and Social Responsibility .. 88
Section VI Important Matters ....................... 99
Section VII Changes in Shares and Shareholders .... 132
Section VIII Preferred Shares ..................... 140
Section IX Bonds .................................. 140
Section X Financial Reports ....................... 141
2 / 276 Full Text of 2024 Annual Report
Contents of Documents for Future Reference
(1) The financial statements containing signature and seals of the person in charge of the Company the person
in charge of the accounting works and the person in charge of the Accounting Firm (Accounting Officer);
(2) The original auditor’s report with the seal of Pan-China Certified Public Accountants LLP and the signature
and seal of the certified public accountants;
(3) Written confirmation from directors senior management and supervisors of the Company on the 2024
Annual Report;
(4) The originals of all company documents and announcements that are disclosed to the public via media
designated by CSRC during the reporting period;
(5) The place where the above-mentioned documents are maintained: Office of the Board of Directors.
3 / 276 Full Text of 2024 Annual Report
Definitions
Term Refers to Definition
Company the Company
Rongsheng Petrochemical Refers to Rongsheng Petrochemical Co. Ltd.Rongsheng Holdings Refers to Zhejiang Rongsheng Holding Group Co. Ltd. controlling shareholder of the Company
Rongtong Logistics Refers to Zhejiang Rongtong Logistics Co. Ltd. a subsidiary of the Company
Saudi Aramco Refers to Saudi Arabian Oil Company the shareholder holding more than 5% of the Company’s shares
ZPC Refers to Zhejiang Petroleum & Chemical Co. Ltd. a subsidiary of the Company
Zhongjin Petrochemical Refers to Ningbo Zhongjin Petrochemical Co. Ltd. a subsidiary of the Company
Yisheng Investment Refers to Dalian Yisheng Investment Co. Ltd a subsidiary of the Company
Shengyuan Chemical Fiber Refers to Zhejiang Shengyuan Chemical Fiber Co. Ltd. a subsidiary of the Company
Rongxiang Chemical Fiber Refers to Rongxiang Chemical Fiber Co. Ltd. a subsidiary of the Company
Hong Kong Sheng Hui Refers to Hong Kong Sheng Hui Co. Ltd. a subsidiary of the Company
Yongsheng Technology Refers to Zhejiang Yongsheng technology Co. Ltd. a subsidiary of the Company
Rongsheng New Materials
(Zhoushan) Refers to Rongsheng (Zhoushan) New Materials Co. Ltd. a subsidiary of the Company
Rongsheng (Singapore) Refers to Rongsheng Petrochemical (Singapore) Pte. Ltd. a subsidiary of the Company
Zhejiang Yisheng Refers to Zhejiang Yisheng Petrochemical Co. Ltd. a joint stock subsidiary of the Company
Hengyi Trading Refers to Ningbo Hengyi Trading Co. Ltd. a joint stock subsidiary of the Company
Yisheng New Materials Refers to Zhejiang Yisheng New Materials Co. Ltd. a holding subsidiary of Zhongjin Petrochemical
Niluoshan New Energy Refers to Ningbo Niluoshan New Energy Co. Ltd. a subsidiary of Zhongjin
Yisheng Dahua Refers to Yisheng Dahua Petrochemical Co. Ltd. a subsidiary of Yisheng Investment
Hainan Yisheng Refers to Hainan Yisheng Petrochemical Co. Ltd. a joint stock subsidiary of Yisheng Investment
The Securities Supervision
Commission CSRC Refers to China Securities Regulatory Commission
Stock Exchange SZSE Refers to Shenzhen Stock Exchange
Yuan 10000 yuan Refers to RMB 1.00 RMB 10000.00
Reporting period Refers to January 1 2024 to December 31 2024
4 / 276 Full Text of 2024 Annual Report
Section II Company Profile and Key Financial Indicators
I. Company Profile
Stock abbreviation Rongsheng Petrochemical Stock code 002493
Abbreviation before change (if
any) None
Listed on Shenzhen Stock Exchange
Company name in Chinese Rongsheng Petrochemical Co. Ltd.Company abbreviation in
Chinese Rongsheng Petrochemical
Company name in the foreign
language (if any) RONGSHENG PETROCHEMICAL CO. LTD.Company abbreviation in
foreign language (if any) RSPC
Legal representative of the
Company Li Shuirong
Registered address No. 98 Hongyang Road Yinong Town Xiaoshan District Hangzhou Zhejiang Province
Zip code of the registered
address 311247
Historical changes in the
registered address of the None
Company
Office address Lanjue International Office Building No. 358 Jincheng Road Xiaoshan District Hangzhou Zhejiang Province
Zip code of office address 311200
Company website http://www.cnrspc.com
E-mail rspc@rong-sheng.com
II. Contact information
Secretary of the Board of Directors Representative of securities affairs
Name Quan Weiying Hu Yangyang
Lanjue International Office Building No. 358 Lanjue International Office Building No. 358
Address Jincheng Road Xiaoshan District Hangzhou Jincheng Road Xiaoshan District Hangzhou
Zhejiang Province Zhejiang Province
Tel 0571-82520189 0571-82520189
Fax 0571-82527208 extension 8150 0571-82527208 extension 8150
E-mail qwy@rong-sheng.com yangyang@rong-sheng.com
5 / 276 Full Text of 2024 Annual Report
III. Information Disclosure and Archiving Place
Website of the stock exchange where the Company
discloses the annual report Shenzhen Stock Exchange (http://www.szse.cn)
Name and website of the media selected by the Securities Times Securities Daily China Securities Journal Shanghai
Company to disclose the annual report Securities News and the CNINFO (www.cninfo.com.cn)
Archiving place for the annual report of the Company Office of the Board of Directors
IV. Registration Changes
Uniform social credit code 91330000255693873W
Changes in the Company’s main business since its
listing (if any) No change
Changes of previous controlling shareholders (if any) No change
V. Other Relevant Information
The accounting firm hired by the Company
Name of accounting firm Pan-China Certified Public Accountants (Special General Partnership)
Office address of the accounting firm Tower B China Resources Building No.1366 Qianjiang Road Shengcheng District Hangzhou
Name of signing accountants Jia Chuan Xu Haihong
The sponsor institution engaged by the Company to perform the continuous supervision responsibility during the
reporting period
□ Applicable □ Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during the
reporting period
□ Applicable □ Not applicable
VI. Key Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□ Yes □ No
Increase or decrease of
Items 2024 2023 this year compared 2022
with the previous year
Operating revenue (RMB) 326475162608.88 325111614268.09 0.42% 289094841612.76
Net profit attributable to
shareholders of the listed 724484686.45 1158146248.89 -37.44% 3340713394.56
company (RMB)
Net profit attributable to
shareholders of the listed
company after deducting 762154045.53 820092947.36 -7.06% 2012164243.32
non-recurring profit or
loss (RMB)
6 / 276 Full Text of 2024 Annual Report
Net cash flows from
operating activities 34609126604.88 28079221508.73 23.26% 19058136885.36
(RMB)
Basic EPS (RMB per
share) 0.08 0.12 -33.33% 0.33
Diluted EPS (RMB per
share) 0.08 0.12 -33.33% 0.33
Weighted average ROE 1.65% 2.48% -0.83% 6.87%
Increase or decrease at
Items At the end of 2024 At the end of 2023 the end of this year compared with the end At the end of 2022
of the previous year
Total assets (RMB) 377845944183.98 374918440311.68 0.78% 362588594491.52
Net assets attributable to
shareholders of the listed 43859172287.65 44335891085.79 -1.08% 47261560704.95
company (RMB)
The lower of the net profit before and after deducting non-recurring profit and loss of the Company in the last three
financial years is negative and the audit report of the last year shows that the Company’s sustainable operation
ability is uncertain.□ Yes □ No
The lower of the net profit before and after deducting non-recurring profit and loss is negative
□ Yes □ No
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profits and net assets in financial reports disclosed in accordance with international
accounting standards and China’s accounting standards
□ Applicable □ Not applicable
In the reporting period of the Company there is no difference in the net profits and net assets disclosed in the
financial report under international accounting standards and China’s accounting standards.
2. Differences in net profits and net assets in financial reports disclosed in accordance with foreign accounting
standards and China’s accounting standards
□ Applicable □ Not applicable
In the reporting period of the Company there is no difference in the net profits and net assets disclosed in the
financial report under foreign accounting standards and China’s accounting standards.VIII. Key Quarterly Financial Indicators
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 81088312171.89 80161432105.96 83946567914.37 81278850416.66
Net profit attributable to shareholders
of the listed company 552356783.62 305578099.52 18742137.68 -152192334.37
Net profit attributable to shareholders 474627417.74 197749139.41 15815885.95 73961602.43
of the listed company after deducting
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non-recurring profit or loss
Net cash flows from operating
activities 4129270983.86 4263267368.09 11323922792.34 14892665460.59
Whether there is significant difference between the above financial indicators or the total sum of them and the
financial indicators related to the quarterly report and semiannual report disclosed by the Company
□ Yes □ No
IX. Items and Amounts of Non-recurring Gain and Loss
□Applicable □ Not applicable
Unit: RMB
Items Amount in 2024 Amount in 2023 Amount in 2022
Gains on disposal of non-current assets including write-off of
provision for impairment 28037854.60 34130889.49 14208115.78
Government grants included in profit or loss (excluding those
closely related to operating activities of the Company satisfying
government policies and regulations enjoyed based on certain 42372438.06 60299389.39 2359477514.76
standards and continuously affecting gains or losses of the
Company)
Gains on changes in fair value of financial assets and financial
liabilities held by non-financial enterprises and gains from
disposal of financial assets and financial liabilities excluding 51474393.47 483856260.59 292348639.74
those arising from hedging business related to operating activities
Fund possession charge from non-financial entities and included 392911.94 248144.66 205188.67
in profit or loss
Other non-operating revenues or expenditures except for the -98193645.95 -7549562.66 -9253736.65
aforementioned items
Other profit/loss items satisfying the definition of non-recurring 35269367.80 14297547.73 2748797.01
profit or loss
Less: Enterprise income tax affected 45497452.62 37178195.47 371798967.48
Non-controlling interest affected (after tax) 51525226.38 210051172.20 959386400.59
Total -37669359.08 338053301.53 1328549151.24
Other gain/loss items falling within the definition of non-recurring gain or loss:
□ Applicable □ Not applicable
The Company has no other gain/loss items falling within the definition of non-recurring gain or loss
Explanation of the circumstances in which the non-recurring gain and loss items listed in the Explanatory
Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-
recurring Gains and Losses are defined as recurring gains and losses.□ Applicable □ Not applicable
The Company does not define any of the non-recurring gain and loss items listed in the Explanatory Announcement
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-recurring Gains and
Losses as recurring gains and losses.
8 / 276 Full Text of 2024 Annual Report
Section III Management Discussion and Analysis
I. Industry of the Company during the Reporting Period
Looking back at 2024 the global economy experienced slow growth with a gradually declining inflation rate.While major economies maintained accommodative monetary policies their upward momentum remained
somewhat insufficient. Amid complex and challenging external conditions China’s economy forged ahead against
headwinds achieving stable progress with continuously reinforced positive trends. Its strides along the path of high-
quality development grew steadier providing strong support and creating more opportunities for global economic
recovery and development.
(1) Global economy
During the reporting period the world economy continued its slow recovery amidst multiple challenges
advancing along a low-to-moderate growth trajectory with uneven progress. Regional divergence in economic
growth became more pronounced with emerging economies remaining the primary drivers of global economic
expansion. According to World Bank and International Monetary Fund (hereinafter referred to as the “IMF”)
estimates global GDP growth reached 3.2% in 2024 up from 2.6% in 2023. The rising inflationary trend was
partially contained while international trade showed activity amid fluctuations and the restructuring of global
industrial chains accelerated with major economies maintaining loose fiscal and monetary policies. IMF data
indicates that the global commodity price index for 2024 stood at 165.2 down by 0.3% from 2023 signaling an
overall moderation in commodity prices.USD/Barrel Brent crude oil price in 2024
100
88.97
9084.96
81.8083.0582.9284.05
79.1179.02
80
73.0675.2773.5173.23
70
60
50
January February March April May June July August September October November December
Source: Wind
(2) Domestic economy
This year amid complex economic conditions China’s economy maintained steady progress. The Gross
Domestic Product (GDP) reached RMB 134.91 trillion marking a 5% year-on-year growth elevating the economic
scale to new heights while maintaining leading growth momentum among major economies. The quarterly GDPgrowth rates were 5.3% 4.7% 4.6% and 5.4% respectively demonstrating a pattern of “strong start moderate mid-year and upward end” reflecting overall stable and progressive economic performance. The value-added output of
industrial enterprises above designated size grew by 5.8% year-on-year with total profits reaching RMB 7.4 trillion.
9 / 276 Full Text of 2024 Annual Report
Following the timely introduction of incremental policies industrial production sustained recovery and profitability
gradually rebounded confirming that the fundamental trend and supporting conditions for long-term economic
growth remain unchanged.
2020-2024 Gross Domestic Product (GDP)
Unit: RMB 100 million Unit: %
160000020
1349084
1294272
1234029
1173823
120000015
1034868
8000008.610
5.45.0
4000003.15
2.3
00
20202021202220232024
Gross Domestic Product (GDP) Growth Rate (Right Axis)
Source: National Bureau of Statistics
(3) Petrochemical industry
The petrochemical industry faced both opportunities and challenges. Evolving global dynamics continued to
impact China’s crude oil imports and product pricing systems through persistent supply chain uncertainties.However China benefited from comprehensive supporting advantages across its complete chemical industrial chain
with production and consumption capacities for multiple chemical products ranking first globally. According to
European Chemical Industry Council (CEFIC) data China accounted for 43% of global chemical sales in 2023. In
recent years China’s petrochemical enterprises have achieved remarkable technological and innovativeadvancements. Leveraging robust domestic demand for chemical products and actively responding to the “Belt andRoad Initiative” they continued expanding into emerging chemical markets. Under the guidance of the “dual-circulation” development paradigm transitioning from “product exports” to “capacity globalization” is emerging
as a critical strategic pathway for the global layout of petrochemical enterprises.According to statistics from the China Petroleum and Chemical Industry Federation China’s petrochemical
industry achieved an operating revenue of RMB 16.28 trillion in 2024 with a year-on-year increase of 2.1%; and a
total profit of RMB 789.71 billion with an year-on-year decrease of 8.8% indicating the industry remains in an
adjustment cycle; The industry’s total import-export volume stood at USD 948.81 billion with a year-on-year
decrease of 2.4% showing overall stable trade performance. Breaking down by sector the oil & gas sector benefited
from reserve expansion and production increase policies generating RMB 1.49 trillion in revenue (+1.5% YoY)
and RMB 336.08 billion in profits (+12.4% YoY). The refining sector showed recovery due to low-base effects
with domestic refined oil product output (gasoline kerosene and diesel combined) reaching 419 million tons (+0.3%
YoY). The chemical sector reported RMB 9.76 trillion in revenue (+4.6% YoY) but profits fell to RMB 454.44
billion (-6.4% YoY) due to downstream property market weakness.In 2024 multiple government bodies including the State Council the National Development and Reform
10 / 276 Full Text of 2024 Annual Report
Commission and the Ministry of Industry and Information Technology introduced various regulatory policies tosupport and standardize the petrochemical industry. The “large-scale equipment renewals and the trade-in of oldconsumer goods” policies boosted demand for chemical materials while environmental policies continued guiding
green transformation. Industrial policies like the Implementation Plan for Innovative Development of Fine Chemical
Industry (2024-2027) and Work Plan for Digital Transformation of Raw Material Industry (2024-2026) promoted
the reshaping of market structures and guided the direction for the refined and intelligent development of
petrochemical enterprises.S/N Policy Issuing authority Time
Ministry of Industry and
1 Work Plan for Digital Transformation of Raw Material Industry Information Technology (MIIT) (2024-2026) and Other Eight Ministries and January 16 2024
Commissions
2 Implementation Opinions on Promoting the Innovative MIIT and Other Six Ministries Development of Future Industries and Commissions January 29 2024
3 Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-in State Council March 13 2024
4 2024-2025 Energy Conservation and Carbon Reduction Action Plan State Council May 29 2024
5 Notice on Improving New Energy Integration to Ensure High-Quality Development of New Energy National Energy Administration June 4 2024
6 Work Plan for Phasing Out and Upgrading Outdated Chemical
Ministry of Emergency
Plants Management and three other June 14 2024 departments
7 Implementation Plan for Innovative Development of Fine
Ministry of Industry and
Chemical Industry (2024-2027) Information Technology (MIIT) July 12 2024 and eight other departments
8 Several Measures to Strengthen Support for Large-Scale
National Development and
Equipment Renewal and Consumer Goods Trade-in Reform Commission (NDRC) July 24 2024 and Ministry of Finance
9 Work Plan for Accelerating the Establishment of a Dual-Control General Office of the State System for Carbon Emissions Council July 30 2024
10 Opinions on Accelerating the All-round Green Transformation of
Central Committee of the
Economic and Social Development Communist Party of China and August 11 2024 State Council
11 Guiding Opinions on Vigorously Taking the Renewable Energy NDRC and Other Five Substitution Action Ministries and Commissions October 18 2024
12 Energy Law of the People’s Republic of China 14th National People’s November 8 Congress Standing Committee 2024
The evolution of industry cycles will continue testing corporate strategic resilience while technological
upgrading and capacity optimization remain key to breakthrough. China’s petrochemical industry with a solid
development foundation is an important pillar industry of the national economy. Leading integrated refining-
chemical enterprises like Rongsheng Petrochemical actively advance “oil-to-chemicals” transformation through
their integrated advantages tapping cost-reduction and efficiency-enhancement potential while rapidly responding
to market demands to continuously improve profitability. Currently three dominant trends are shaping the
industry’s development: high-end digital intelligence and green and low-carbon. Domestic petrochemical
companies are vigorously developing innovative fine chemicals with growing R&D investment in high-end
chemical products. With emerging technologies proliferating the digital transformation in China’s petrochemical
industry is deepening leveraging IoT big data and AI to enhance digital energy efficiency and new material R&D
thereby strengthening anti-cyclical capabilities. As the “carbon peaking and carbon neutrality” agenda accelerates
green and low-carbon development has become an imperative for industry transformation and upgrading.
11 / 276 Full Text of 2024 Annual Report
Petrochemical enterprises must simultaneously improve production energy efficiency and increase R&D investment
in clean energy technologies to meet future market requirements.
(4) Industry position and competitive advantages of the Company
As one of the world’s leading chemical material producers Rongsheng Petrochemical is a major manufacturer
of polyester new energy materials engineering plastics and high-value-added polyolefins in China and Asia. The
refining and chemical integration project of ZPC which was led by the Company boasts an annual processing
capacity of 40 million tons of crude oil 8.8 million tons of paraxylene (PX) and 4.2 million tons of ethylene
achieving globally leading integration rates. In July 2024 US Chemical & Engineering News (C&EN) ranked
Rongsheng Petrochemical 14th in its “Global Top 50 Chemical Companies 2024” marking the Company’s fourthconsecutive year on the list. The same year Rongsheng Petrochemical was ranked 8th in ICIS’ “World Top 100Chemical Companies” 6th in US Chemical Week’s “Billion-Dollar Club of Global Chemical Companies” and 6th
in Brand Finance’s “World’s Most Valuable Chemical Brands 2024”. In November 2024 the globally authoritative
index provider MSCI (Morgan Stanley Capital International) announced its latest ESG ratings with Rongsheng
Petrochemical’s MSCI ESG rating upgraded to BBB ranking among the global leaders in the Diversified Chemicals
sector demonstrating management performance at the forefront of the global petrochemical industry in terms of
carbon emission reduction water resource management and corporate governance.In recent years the Company has actively responded to national policy directives through technological
innovation green transformation and strategic planning to drive transformation and upgrading. For vertical
extension it has continued to strengthen the resource integration and scale effects of its refining and chemical
integration model and fully leveraged its advantages of “cost reduction and efficiency improvement” and potential
of “oil-to-chemical conversion” to enhance operational performance. For horizontal expansion the Company has
actively laid out differentiated high-end and green product systems with its product portfolio covering new energy
materials polyester synthetic resins and other sectors significantly boosting its comprehensive competitiveness in
the global market. Through the projects such as ZPC’s refining and chemical integration project and Jintang new
materials it is aggressively developing high-value downstream sectors including new energy materials and premium
resins; By continuously extending and complementing its industrial chain it achieves comprehensive coverage from
basic chemical raw materials to advanced new materials establishing a production system with high-quality
development. In terms of global cooperation the strategic partnership between Rongsheng Petrochemical and Saudi
Aramco has further solidified its industry position. Since Aramco’s strategic investment in 2023 both parties have
deepened collaboration in crude oil procurement raw material supply technological exchange and overseas market
expansion. In 2024 the Company enhanced equity cooperation with Aramco through joint development of the
Zhongjin Petrochemical and SASREF expansion projects substantially strengthening its global layout.II. Main Businesses of the Company during the Reporting Period
Procurement mode of main raw materials
Unit: RMB/ton
Main raw Procurement Proportion in the Significant changes Average price in Average price in
materials mode total purchase in settlement the first half of the second half of amount method the year the year
Crude oil Quotation purchase 61.87% No 4216.22 3941.67
Naphtha Quotation purchase 1.67% No 5307.99 5147.04
Fuel oil Quotation purchase 3.28% No 3712.29 3711.69
PX Quotation purchase 7.60% No 7382.83 6472.70
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Energy purchase prices accounting for more than 30% of total production costs
□ Applicable □ Not applicable
Production technology of main products
Development
Main stage of Core Proprietary
products production technical technology Product R&D advantages
technology personnel
Stage of Several
Using the overseas advanced steam cracking process the raw materials will be cracked in the high-temperature
Ethylene core Introduction cracking furnace tube to generate a low molecular weight hydrocarbon mixture that is pyrolysis gas. The pyrolysis
Propylene technology technical and gas containing ethylene propylene and other products will be quenched compressed alkali washed dried application personnel innovation hydrogenated and undergo cold-thermal separation and methanization to produce polymer grade ethylene and polymer grade propylene and other products.Stage of Several core Introduction With the overseas advanced low-pressure gas-phase production process high medium and linear low-density FDPE technology technical and polyethylene products can be manufactured. Using ethylene as the main raw material and butene-1 or Hexene-1 as a application personnel innovation comonomer linear low density and some medium and high-density polyethylene granular resins can be produced.Stage of Several Introduction The HDPE unit adopts the advanced slurry loop polymerization process and produces bimodal and unimodal
HDPE technology core and polyethylene products through two loop reactors in series. The reaction should be carried out at medium temperature
application technical innovation and pressure. With mild reaction conditions the proprietary concentration equipment can improve the slurry personnel concentration and reduce the load of the solvent recovery unit.Several
EVA/LDP Stage of Introduction technology core and Advanced tubular reactor technology can switch to produce LDPE homopolymer resin particles of different brands E application technical innovation and EVA copolymer resin particles with VA content less than or equal to 28% in one production line. personnel
Stage of Several Introduction Spherizone process technology has been developed based on the Spheripol process. The Spherizone process based on
PP technology core and multizone circulating reactor (MZCR) technology is adopted to divide a reactor into two reaction areas to control the
application technical innovation reaction conditions independently. The gradually growing polymer particles will circulate quickly and repeatedly in personnel the two reaction areas to realize the “onion-shaped” uniform mixing in the polymer particles.Several 1) Diphenyl carbonate unit: DPC is produced by using the overseas advanced process of ester exchange between Stage of core Introduction dimethyl carbonate and phenol. DPC products are of high quality and suitable for the production of high-quality PC technology technical and polycarbonate; 2) Polymerization unit: the overseas advanced process of non-phosgene transesterification and melt application personnel innovation polycondensation is adopted. Main features: compared with phosgenation the technology has lower emission of environmental pollutants higher product yield lower monomer residue and larger single line production capacity.BPA Stage of Several Introduction Bisphenol A (BPA) ion exchange resin process technology uses phenol and acetone as raw materials and catalyzes the
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technology core and condensation reaction in an acidic medium to produce BPA.application technical innovation
personnel
The adsorption and separation unit adopts the overseas advanced process that is using simulated moving bed (SMB)
Several technology and supporting adsorption and separation process to produce PX products with desorbent. 2# xylene Stage of core Introduction fractionation unit adopts fractionation process matched with Parex and isomerization to cut the raw materials meeting PX technology technical and the feed requirements for adsorption and separation unit through distillation column separation; The isomerization unit application personnel innovation adopts overseas advanced process and catalyst to increase xylene production through isomerization reaction by using the mixed C8 aromatic hydrocarbons with lean PX extracted from the side line of Parex raffinate column are used as
raw materials.The extraction and distillation unit adopts the overseas advanced sulfolane extraction and distillation process that is
to use sulfolane as solvent and light and heavy whole oil as raw materials to produce extract oil (mixed aromatic
Stage of Several
hydrocarbon) and raffinate oil. The disproportionation unit adopts the overseas advanced disproportionation process
core Introduction and catalyst to increase the production of xylene and benzene by using toluene and C9/C10A as raw materials for Benzene technology technical and disproportionation reaction. The B/T fractionation unit adopts a fractionation process matched with extraction and application personnel innovation disproportionation to separate benzene products and toluene by distillation in benzene column and toluene column with the mixed aromatic hydrocarbons extracted and disproportionated as raw materials. The 1# xylene fractionation
unit adopts the fractionation process matched with reforming and disproportionation to cut the raw materials meeting
the feed requirements for adsorption and separation device and other devices through distillation column separation.The advanced proprietary technology is used to produce ABS resin with acrylonitrile (AN) butadiene (BD) and styrene
Stage of Several Introduction (SM) as the main raw materials by emulsion grafting-bulk SAN blending method. The emulsion grafting-bulk SAN
ABS technology core and blending process is mature because of the direct use of monomer polymerization to produce ABS the product quality
application technical innovation is stable the variety is wide the production is flexible and the product switching is easy. The emulsion grafting-bulk personnel SAN blending method has the advantages of less investment and low production cost and is easy to realize mass
production.Several It adopts the anion catalytic synthesis process technology bimetallic cyanide (DMC) catalytic synthesis process
Polyether Stage of core Introduction technology and POP process technology. The first type of product is a polyoxypropylene polyol product which is
polyol technology technical and obtained by copolymerization with propylene oxide and ethylene oxide using glycerol or organic amines as initiator; application personnel innovation The other type is polymer polyols which are obtained by grafting polymerization of acrylonitrile styrene and other polyols.Solution The production processes for SSBR and NDBR both utilize advanced foreign proprietary technology. The production
polymeriz Stage of Several core Introduction method of solution polymerized styrene-butadiene rubber (SSBR) is a solution polymerization method where ed technology technical and butadiene and styrene are polymerized in a mixed solvent of normal hexane and cyclohexane in the presence of a styrene- application personnel innovation polymerization catalyst NBL; The rare earth cis-14-polybutadiene rubber (NDBR) is produced by solution butadiene polymerization. Butadiene is polymerized in an n-hexane solution in the presence of NdV ACT and AOC catalysts.rubber
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(SSBR)
and rare
earth cis-
polybutadi
ene rubber
(NDBR)
Several
Acrylonitr Stage of core Introduction The acrylonitrile unit adopts acrylonitrile ammoxidation technology where propylene and ammonia react and then
ile technology technical and undergo processes such as quenching and absorption --- extractive distillation + distillation purification to ultimately application personnel innovation obtain high-purity acrylonitrile products.Several It adopts SHELL’s process route of ethylene-oxygen direct oxidation to ethylene oxide and ethylene oxide hydration Ethylene Stage of core Introduction to ethylene glycol for EG production using ethylene and oxygen as raw materials which react with each other to form Glycol technology technical and ethylene oxide. It consists of five parts: EO reaction system CO2 removal and EO recovery system light component (EG) application personnel innovation removal and EO refining system EG reaction and evaporation system and EG refining system. Compared to other methods this process features lower reaction temperatures reducing energy consumption and equipment investment
Several The phenol acetone plant adopts the overseas advanced cumene oxidation technology where benzene and propylene
Phenol Stage of core Introduction react under catalyst to produce cumene which is then oxidized to form cumene hydroperoxide (CHP). After
Acetone technology technical and concentration CHP is decomposed under acidic conditions to yield phenol and acetone. The entire production process application personnel innovation consists of seven main sections: oxidation concentration decomposition neutralization fractionation hydrogenation and phenol recovery.Vinyl Stage of
Several
core Introduction The vinyl acetate plant adopts advanced technology where gaseous ethylene oxygen and acetic acid undergo
Acetate technology technical and adsorption-oxidation-reduction-dissociation under a catalyst with silica as the carrier and palladium gold and application personnel innovation potassium acetate as active components to produce vinyl acetate.Stage of Several Introduction The acetic acid plant adopts advanced methanol low-pressure carbonylation process using carbon monoxide and Acetic technology core and methanol as raw materials and Ir/Ru as the catalyst to synthesize acetic acid under heating and pressurization. The acid application technical innovation crude acetic acid obtained is then subjected to preliminary processing dehydration drying and a series of refining personnel and purification steps to produce qualified acetic acid products.Stage of Several core Introduction The styrene plant consists of the ethylbenzene unit which employs the overseas advanced liquid-phase alkylation Styrene technology technical and technology using benzene as the raw materials to produce ethylbenzene by alkylation and the styrene unit where application personnel innovation ethylbenzene undergoes catalytic dehydrogenation in the presence of steam to yield styrene product.Stage of Several Introduction The POE plant adopts advanced technology. It uses polymerization-grade ethylene from the ethylene plant hydrogen
POE technology core and 1-octene from the α-olefin plant and 1-butene from the 1-butene unit as raw materials employs a metallocene
application technical innovation (transition metal atom and metallocene ring (cyclopentadienyl or substituted cyclopentadienyl anion)) as the main
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personnel catalyst hexane as the solvent along with solid additives and antioxidants used in the extrusion and pelletization
section to produce POE.The core technology of this product has its own independent intellectual property rights. The Company has participated
in the formulation of the national standards for the energy consumption limit per unit product of this product. The
large-scale device greatly reduces the investment cost per unit product. Besides the continuous improvement of new
technologies and new equipment has shortened the process. For example the oxidation unit adopts pressure filter
instead of vacuum filter dryer intermediate silo and other auxiliary systems; The refining unit adopts pressure filter
which changes two-stage separation into one-stage separation. Compared with the traditional process the number of
equipment is reduced the maintenance cost is also greatly cut the reliability of equipment is improved and the stability
of the device is improved accordingly. At present the pressure filter technology has been well applied in PTA plant
and has become a development trend at present. In addition the application of new materials in PTA production has
further reduced the investment cost. At present dual-phase steel is used to replace part of titanium alloy and 317L
which reduces the material cost. In terms of material consumption all PTA patent manufacturers have done a lot of
work in optimizing oxidation reaction conditions adjusting catalyst ratio increasing catalyst recovery PTA mother
liquor solid recovery methyl acetate recovery and so on and all of them have been successfully applied to industrial
Leading Several Introduction devices. The use of these optimizations and new technologies greatly reduce the material consumption of PTA
PTA position in core and production. In terms of energy consumption as the oxidation reaction is exothermic a lot of heat will be released
China technical innovation during such reaction. At present PTA patent technologies use the reaction heat to generate low-pressure steam of personnel different grades for air compressors and other low-pressure steam users in the device (such as dehydration tower). By
using this method the oxidation tail gas at the top of the oxidation reactor is cooled and energy is recovered;
Hydrogenation reaction is a high-temperature and high-pressure reaction. During the crystallization process with the
gradual reduction of pressure a large number of steam with different grades will flash out which is basically used to
heat the feed of hydrogenation reactor and can be heated to about 260°C. Oxidation tail gas is high-pressure gas part
of which is used as the driving power of air compressor and the rest is used for conveying gas and inert gas in the
device to users. In addition the process arrangement is optimized as much as possible to make full use of the heat
exchange of hot and cold process fluids. Through the above measures PTA basically does not need to supply low-
pressure steam from outside at present but only needs a certain amount of high-pressure steam to heat the feed of
hydrogenation reactor from about 260°C to about 286°C; The drive of the air compressor does not need to supply
energy from outside. In order to reduce energy consumption some other measures have been taken such as increasing
the feed concentration of hydrogenation reactor and increasing the circulation of mother liquor in TA unit. At present
the comprehensive energy consumption of PTA has been greatly reduced and the energy consumption of products is
better than the advanced value of national standards.Maximum output maximum conversion rate and minimum energy consumption; By tapping the equipment potential
Several Introduction achieve the purpose of improving production and efficiency without increasing energy consumption; Improve energy
Polyester Large-scale core and utilization rate and reduce production cost; Eliminate the filter blockage waste of labor save the cost of bagging and application technical innovation bring considerable economic benefits to the company; Make the basic magnesium sulfate whisker tetrapod-like zinc personnel oxide whisker magnesium salt whisker β-type silicon nitride whisker melamine cyanurate microencapsulated red
phosphorus flame retardant ethylene glycol etc. into flame retardant and anti-dripping whisker glycol solution
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through a certain manufacturing process by using the company’s patented technology; Add the flame-retardant and
anti-dripping whisker glycol solution into the slurry preparation tank and prepare the flame-retardant and anti-dripping
polyester through esterification pre-polycondensation and final polymerization.Multi-
functional Leading Several Introduction The core technology of this product adopts the current international advanced high-temperature crystallization and
polyester position in core technical and solid-phase polycondensation process with a short process low energy consumption and domestic leading bottle China personnel innovation performance of comprehensive energy consumption per unit product. grade chip
Through the independent design and installation of multiple addition points online adding equipment with various
Several Introduction additional materials dynamic and static mixing equipment oil nozzle winding machine etc. on the melt direct
Fiber Large-scale core and spinning line the existing equipment was optimized to obtain benefits from the differentiated and high-end products application technical innovation of polyester melt direct spinning and realize transformation and upgrading. The contradiction between large capacity personnel polyester plants and the production of small batch and multi-agent functional differentiated fibers has been solved.The main products include flame-retardant antistatic colored and full extinction functional modified fibers.Several
Texturing Mass core
Introduction The technology is independently developed and completed by the Company. It is used to process DTY and FDY in
production technical and uniform military green black and other colors. No dyeing is required after weaving so the products hardly lose colors
personnel innovation in daily use and are mostly used to weave fabrics for special purposes.It possesses both direct melting and chip-based film drawing production lines. The direct melting method involves
directly conveying the polymerized melt to the film drawing production line for film production offering advantages
Multifunct Several Introduction such as simplified processes lower production costs and stable quality; The chip-based film production method allows ional Mass core and for the addition of various functional materials according to product application requirements providing benefits such polyester production technical innovation as flexible production and high product added value. Differentiated products such as backplate films matte films heat-film personnel sealable films UV-resistant films and release protective films developed and produced by the chip-based production
line have been widely applied in photovoltaic backplates window films sunshades high-end packaging and optical
fields.Several
Film grade Mass core Introduction By adding composite conductive substances to polyester the problem of difficult adhesion due to high casting speed
chips production technical and innovation on high-speed production lines has been solved making it applicable to high-speed film drawing production lines. personnel
High Several
silicon Mass core Introduction By solving the problem of dispersion of micron-sized particles the silica particles are added into a reaction kettle in
masterbat production technical and the polymerization process so that the master batch with high silica content is prepared and the master batch can be
ch personnel innovation widely applied to the production of polyester films.Matte Mass Several Introduction Through the dispersion of silicon particles add silica with larger particle size and smaller void ratio to the reaction
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master production core and kettle during the polymerization process so as to prepare matte master batch with high fog and low matte which can
batch technical innovation be used in the production of polyester matte film.personnel
Antimony Several It adopts a novel environmentally friendly and highly efficient titanium-based catalyst combined with online polyester
-free Mass core Introduction addition and process optimization achieving the production of antimony-free polyester melt. The environmentally
polyester production technical and friendly antimony-free polyester chips can effectively prevent antimony precipitation associated with traditional
chips personnel innovation catalysts meeting market demand for green and eco-friendly polyester products in wide applications; The cost advantages of titanium-based catalysts further contribute to cost reduction and efficiency improvement.
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Production capacity of main products
Design Capacity under
capacity
Main products Capacity
construction
utilization Investment and construction (10000 (10000
tons/year) tons/year)
Fuel 1366
Para-xylene (PX) 1040
M-xylene (MX) 20
Mixed Xylene 9.6
Benzene (BZ) 330
Heavy Aromatic Hydrocarbon
(HAH) 21
Ethylene Glycol (MEG) 240
Diethylene Glycol (DEG) 19.8
Triethylene Glycol (TEG) 11.4
Purified terephthalic acid (PTA) 2150
Purified isophthalic acid (PIA) 30
Bi-oriented polyester film (BOPET) 43
Shengyuan chemical fiber
Pre-oriented yarn (POY) 46 25 differential fiber project is under
construction
Adjust flexibly Shengyuan chemical fiber
Fully drawn yarn (FDY) 54 according to market 25 differential fiber project is under
construction
Shengyuan chemical fiber
Draw texturing yarn (DTY) 42 25 differential fiber project is under
construction
Bottle grade chip (PET) 530
Full-density polyethylene (FDPE) 90
High-density polyethylene (HDPE) 65
Low-density polyethylene (LDPE) 80 40 Under construction
Ethylene-vinyl acetate copolymer
(EVA) 140 110 Under construction
Polypropylene (PP) 180
Acrylonitrile butadiene styrene
(ABS) 160 120 Under construction
Styrene monomer (SM) 130
Polycarbonate (PC) 52
Phenol (PH) 40
Acetone (ACT) 13
Methyl methacrylate (MMA) 38 20 Under construction
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Polymethyl Methacrylate (PMMA) 18 Under construction
Acrylonitrile (AN) 48 66 Under construction
Acetonitrile (ACN) 3.36 1.8
Butadiene (BD) 7
Sulfur (S) 121
Polyether glycol/Polyether polyol
(PPG/POP) 97 59 Under construction
Low cis-polybutadiene rubber
(LCBR) 10
Solution styrene butadiene rubber
(SSBR) 6
Piperylene Resin 7
Isoprene 7.4
Dicyclopentadiene (DCPD) 4.72
Hydrogenated C9 12.51
Heavy Fraction 4.7
Cracked Naphthalene Fraction 3.2
Cyclopentane 2.52
Refined C5 16.6
Isopentane 1
Types of products in major chemical parks
Major chemical parks Types of products
Zhoushan Green Petrochemical Base Products in the petrochemical industrial chain
Ningbo Petrochemical Economic＆Technological Development Zone Products in the petrochemical industrial chain
DaGuShan Chemical Industrial Park at Jinpu New Area Dalian Products in the petrochemical industrial chain
EIA approvals being applied for or newly obtained during the reporting period
□Applicable □ Not applicable
Projects EIA approval
Supporting water intake and drainage outlet project (southern zone) of 40 million to
ns/year refining and chemical integration project of Zhejiang Petroleum & Chemica ZHDJS [2024] No. 4
l Co. Ltd.Supporting gas-fired power station project for 40 million tons/year refining and che
mical integration phase II project product structure optimization project of Zhejiang ZHDJS [2024] No. 3
Petroleum & Chemical Co. Ltd.Renovation and upgrade project (Phase I) of refining and chemical integration proj
ect of Zhejiang Petroleum & Chemical Co. Ltd. ZHDJS [2024] No. 9
High-end new material project of Zhejiang Petroleum & Chemical Co. Ltd. ZHDJS [2025] No. 4
Novel catalytic cracking pilot project of Zhejiang Petroleum & Chemical Co. Ltd. ZHDJS [2025] No. 3
Approval of environmental impact
Tank farm optimization and renovation project of Ningbo Zhongjin Petrochemical assessment form for tank farm optimization
Co. Ltd. and renovation project of Ningbo Zhongjin
Petrochemical Co. Ltd. (ZHX [2024] No.
20 / 276 Full Text of 2024 Annual Report
29)
Review comments of Ningbo Municipal
Bureau of Ecology and Environment on
Catalyst upgrade zero-land renovation project of Ningbo Zhongjin Petrochemical environmental impact assessment report for
Co. Ltd. catalyst upgrade zero-land renovation
project of Ningbo Zhongjin Petrochemical
Co. Ltd. (YHJ [2024] No. 21)
Polyester plant acetaldehyde high-efficiency recovery carbon reduction and
efficiency improvement technical renovation project of Yisheng Dahua DHZ Zi [2024] No. 000050
Petrochemical Co. Ltd.Intelligent functional fiber project with an annual output of 500000 tons
(Shengyuan Phase II) of Zhejiang Shengyuan Chemical Fiber Co. Ltd. Approval in progress...The listed company was subject to abnormal production stoppage during the reporting period
□Applicable □Not applicable
Relevant approvals permits qualifications and validity terms
□Applicable □Not applicable
Unit approved Qualification / license Approval department Validity term
Rongsheng Work Safety Standardization Certificate Hangzhou Municipal Emergency Petrochemical Management Bureau April 2026
Rongsheng
Petrochemical Pollutant Discharge Permit
Hangzhou Municipal Ecology and
Environment Bureau November 5 2026
Measurement standard assessment
ZPC certificate (Standard plant for Class 0.05 Zhoushan Municipal Administration
digital pressure measurement) for Market Regulation
July 29 2029
Measurement standard assessment
ZPC certificate (Standard plant for Class II Zhoushan Municipal Administration November 7 2028
platinum resistance thermometer) for Market Regulation
Measurement standard assessment
ZPC certificate (Standard plant for working-base Zhoushan Municipal Administration November 5 2028
metal thermocouple) for Market Regulation
Measurement standard assessment
ZPC certificate (Standard plant for Class I Zhoushan Municipal Administration platinum rhodium 10-platinum for Market Regulation November 5 2028
thermocouple)
ZPC CNAS Laboratory Accreditation Certificate China National Accreditation Service for Conformity Assessment April 13 2028
ZPC Quality management system certificate Beijing Sanxing 9000 Certification Body Co. Ltd. May 9 2026
ZPC National Industrial Product Manufacture Zhejiang Provincial Administration Licensing Certificate for Market Regulation December 30 2025
ZPC Registration Certificate for Hazardous Zhejiang Provincial Registration Chemicals Center for Hazardous Chemicals June 13 2026
ZPC Safe Production License Zhejiang Provincial Emergency Management Department December 27 2026
ZPC Pollutant Discharge Permit Zhoushan Ecology and Environment Bureau July 14 2029
ZPC License for Port Operation Zhoushan Shipping and Port Administration October 11 2026
ZPC Project Approval List Specified in
Aircraft Airworthiness Approval
Technical Standards (3# jet fuel) Department of Civil Aviation July 13 2026 Administration
21 / 276 Full Text of 2024 Annual Report
ZPC Project Approval List by Civil Aviation Oil
Aircraft Airworthiness Approval
Testing Unit (3# jet fuel) Department of Civil Aviation May 17 2026 Administration
ZPC Special License for Production of MCCs Ministry of Industry and Information (Phase I) Technology (MIIT) May 7 2026
ZPC Special License for Production of MCCs Ministry of Industry and Information (Phase II) Technology (MIIT) November 28 2027
ZPC Import Qualification for Non-state Trade of Crude Oil Ministry of Commerce /
ZPC Export Qualification for Non-state Trade of Refined Oil Ministry of Commerce /
ZPC Import Qualification for Non-state Trade of Refined Oil (Fuel Oil) Ministry of Commerce /
Zhongjin Zhenhai Branch of Ningbo Ecology
Petrochemical Pollutant Discharge Permit and Environment Bureau December 2 2029
Zhongjin National Industrial Product Manufacture Zhejiang Provincial Administration
Petrochemical Licensing Certificate for Market Regulation February 11 2028
Zhongjin
Petrochemical Radiation Safety License
Department of Ecology and
Environment of Zhejiang Province July 16 2028
Zhongjin Safe Production License Zhejiang Provincial Emergency Petrochemical Management Department June 4 2026
Zhongjin Registration Certificate for Hazardous Registration Center for Chemicals of
Petrochemical Chemicals the Ministry of Emergency October 13 2025 Management
Niluoshan New Zhenhai Branch of Ningbo Ecology
Energy Pollutant Discharge Permit and Environment Bureau December 1 2029
Yisheng Dahua Safe Production License Liaoning Provincial Emergency Management Department March 27 2028
Yisheng Dahua License for Port Operation of the People’s Dalian Traffic and Transportation Republic of China Bureau July 24 2025
Yisheng Dahua Registration Certificate for Hazardous Liaoning Provincial Work Safety Chemicals Service Center November 15 2026
Yisheng Dahua Pollutant Discharge Permit Dalian Ecology and Environment Bureau September 5 2029
Shengyuan
Chemical Fiber Work Safety Standardization Certificate
Hangzhou Municipal Emergency
Management Bureau October 1 2026
Shengyuan
Chemical Fiber Pollutant Discharge Permit
Hangzhou Municipal Ecology and
Environment Bureau November 5 2026
Yongsheng National Industrial Product Manufacture Zhejiang Provincial Administration
Technology Licensing Certificate for Market Regulation August 11 2026
Yongsheng
Technology Pollutant Discharge Permit
Shaoxing Ecology and Environment
Bureau February 6 2029
Ecological Environment Bureau of
Hainan Yisheng Pollutant Discharge Permit Yangpu Economic Development May 14 2026
Zone
Hainan Yisheng Radiation Safety License Department of Ecology and Environment of Hainan Province December 26 2026.Hainan Yisheng Safe Production License Department of Emergency Management of Hainan Province March 29 2027
Hainan Yisheng Hazardous Chemical Business License Administration Approval Service Bureau of Danzhou City February 27 2028
22 / 276 Full Text of 2024 Annual Report
Hainan Yisheng License for Port Operation of the People’s Transportation Maritime and Port Republic of China Bureau of Danzhou City March 8 2025.Hainan Yisheng Class Two Standardization Enterprise on Department of Emergency Production Safety Management of Hainan Province November 10 2027
Hainan Yisheng Port Shoreline Use Certificate of People’s Ministry of Transport of the People’s Republic of China (PRC) Republic of China May 20 2065
Registration Certificate for Hazardous Registration Center for Chemicals of Hainan Yisheng Chemicals the Ministry of Emergency February 3 2027 Management
Hainan Yisheng Port Facility Security Compliance Hainan Port and Shipping Certificate Administration October 26 2026
Hainan Yisheng Radio Registration Certificate Hainan Provincial Department of Industry and Information Technology June 9 2031
Zhejiang Yisheng Pollutant Discharge Permit Ningbo Ecology and Environment Bureau Beilun Branch November 12 2029
Zhejiang Yisheng Radiation Safety License Department of Ecology and Environment of Zhejiang Province November 10 2029
Engaged in oil processing oil trade industry
□Yes □No
The company primarily imports crude oil from overseas as feedstock and is engaged in the R&D production and
sales of various petroleum chemical and polyester products with a diverse product portfolio and comprehensive
specifications covering multiple fields including new energy new materials organic chemicals synthetic fiberssynthetic resins synthetic rubber and petroleum products essentially realizing the transformation from “a drop ofoil to all things in the world” and enhancing its new materials industrial chain based on its existing global-scale
integrated refining & chemical complex and complete upstream-downstream supporting facilities.Engaged in chemical fertilizer industry
□Yes □No
Engaged in pesticide industry
□Yes □No
Engaged in chlorine-alkali and soda ash industry
□Yes □No
III Analysis of Core Competitiveness
As one of the leading enterprises in the petrochemical industry with leading comprehensive strength in China
the Company’s core competitiveness is mainly reflected in the following aspects:
(1) Complete industrial synergistic advantages
After years of development and improvement the Company has seized the opportunity of industrial adjustment
achieved rapid growth and formed the development strategy of “from a drop of oil to everything in the world”.Through the extension of the industrial chain the Company has effectively reduced the business cost realized the
mutual support of upstream and downstream sectors and also improved its sustainable profitability and risk
resistance. On the basis of the complete polyester industry chain of Rongsheng Holdings the controlling shareholder
and Tongkun Holding the participating shareholder ZPC has successfully established the last link of the whole
process from a drop of oil to a piece of fiber and formed the great advantage of upstream and downstream
integration of the polyester industry and the favorable synergy advantage between other industrial chain and the
shareholder unit
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The interconnection of Zhoushan Green Petrochemical Base and Ningbo Petrochemical Base can realize the
coordinated development of both Ningbo and Zhoushan bases and pipeline transportation greatly reduces the risk
and cost of ship transportation and land transportation; A large number of light hydrocarbon raw materials by-
products from Ningbo Petrochemical Base are transported to Zhoushan Green Petrochemical Base through pipelines
which can be used as high-quality ethylene raw materials. Surplus oil products from Zhoushan Green Petrochemical
Base can be transported to Ningbo Petrochemical Base as high-quality raw materials for aromatic hydrocarbon
production.The construction of ZPC Project has supporting facilities that can meet the demand of crude oil supply in the
two phases of the project. The total storage capacity of Mamu crude oil depot and Yushan Island crude oil depot
has reached 4.6 million m3 which is the largest storage capacity among domestic refining and chemical facilities.As the most concentrated resource allocation base for oil and gas enterprises in China the Zhejiang Free Trade Zone
has an oil depot capacity of more than 30 million m3 including Cezi Island and Waidiao Island. Most of the oil
pipeline networks are interconnected making local transportation available.
(2) Remarkable location competition advantagesThe Company’s production bases are located along the eastern coastline of China including the “Circum-Bohai Sea Economic Zone” in Dalian City Liaoning Province; the “Yangtze River Delta Economic Circle” in
Ningbo City Zhejiang Province; the “Belt and Road Economic Belt” and the “Maritime Silk Road” in Haikou City
Hainan Province. Each production base of the Company is adjacent to high-quality ports connected with canals and
equipped with complete wharf facilities. The main raw materials and other auxiliary raw materials required for
production can be unloaded and stored at the chemical material wharf built or rented by the Company which has
provided convenient transportation of bulk raw materials and inventory adjustment.ZPC Project is located in the concentrated consumption area of oil products and chemical products with the
key products marketable. The target market of chemical products is mainly East China and South China where the
economy is the most developed with the most active downstream consumption market for petrochemical products
and whose related industries such as downstream plastic product processing industry light industry and daily
chemical industry are developed with strong market acceptance for bulk petrochemical products. Refined oil has
many sales channels and enjoys strong policy support and obvious competitive advantages. The Ministry of
Commerce officially approved granting ZPC the export qualification of non-state-owned trade refined oil. As the
first private refining and petrochemical enterprise to obtain export permission ZPC took the lead in opening sales
channels in Southeast Asia. In the face of the excess supply of domestic refined oil this export permission given to
ZPC has become more valuable.
(3) Excellent strategic layout advantages
The Company with inherent strong market sensitivity and flexible decision-making mechanism can not only
keep a close eye on the market but also make timely and accurate adjustments to the strategy and seize the
preemptive opportunities of the market under its own mechanism advantages of fast pace and few links. The
management has a keen sense of investment accurate timing for project operation and excellent investment and
financing capacity. The Company started from polyester chemical fiber and after years of development it has
formed a good foundation. With the full-scale operation of the 40 million tons/year refining and chemical integration
project of its subsidiary in early 2022 ZPC has become the largest single refinery in the world. Relying on the
world’s largest single-unit 40 million tons/year refining and chemical integration project of ZPC the Company has
accelerated the layout of downstream new chemical materials aimed at the field of new energy and high-end
materials and has deployed a number of new energy and new material products such as EVA POE DMC PC and
ABS continuously enriching its product chain. With the steady progress of new projects the Company’s production
capacity of new energy materials renewable plastics special synthetic materials and high-end synthetic materials
will be expanded in an orderly manner and the transformation of new materials will be gradually accelerated.
24 / 276 Full Text of 2024 Annual Report
(4) Strong R&D and innovation advantages
The Company upholds a technological R&D pattern driven by both independent innovation and cooperation.We have established many world-class R&D platforms including a high-tech R&D center a workstation for
academicians and experts an enterprise technology center and a post-doctoral science and research workstation.Moreover we engage in active technology exchanges and discussions and promote industry-university-research
collaboration to acquire resources from universities the community and the Company. With all sectors of society
we jointly promote our research capabilities and technological advancement and together create an innovation
ecosystem that is open healthy and cooperative where everyone can benefit. In recent years the Company has
continuously stepped up scientific research cooperation with domestic and foreign countries and increased its R&D
investment year by year to maintain a leading level in the industry.The Company’s main manufacturing subsidiaries are all national high-tech enterprises with strong research
and development strength and rich process operation experience accumulated during long-term production
management which have gathered the strength of “production learning research and use” at home and abroad
carried out research and development with independent innovation and established an integrated achievement
improvement platform for laboratory innovation small test pilot test and industrial demonstration production and
overcome the disadvantage that it is difficult to incubate and transform related achievements although with basic
research by other research institutes in China relying on the Company’s flexible system and mechanism and
complete industrial chain advantages breaking through the final ceiling from scientific research achievements to
industrial promotion and application boosting industrial technological innovation and upgrading seizing the
technologically leading position and promoting the Company’s high-quality development in the terms of
technological independence raw material diversification high-end products green production and intelligent
industry.
(5) Rich human resources advantages
Focusing on the construction of corporate culture the Company has formed a favorable working atmosphere
and strong corporate cohesion. The Company has also trained a group of stable core management R&D and
technical talents through internal training and introduction. The Company attaches importance to the cultivation of
on-the-job staff. Based on reality and comprehensive planning the Company is constantly broadening the staff
selection platform and formulating an effective incentive mechanism. To maintain the practical and effective work
of the staff the Company has improved the benefits of employees optimized the professional title assessment
system and clarified the promotion standards and incentives. The Company combines the employee examination
with performance evaluation and replaces evaluations with competition to dynamically evaluate employees’
comprehensive quality and form a healthy competition atmosphere of competing through learning and competingfor first place. Following the principle of “different measures for different talents and making good use of thestrengths of talents” every employee will have the opportunity to give full play to their abilities.In addition the Company attaches great importance to the management of talents and teams and adopt a two-
pronged approach of internal incentives and external cultivation. In terms of internal management we will promote
the construction of three teams of senior management high potential and specialization pay special attention to
talent evaluation and clean education strengthen skill training and skill recognition and improve the quality of
employees in all aspects. In terms of external cultivation we will rely on the cooperation platform of industry
academia and research to actively do a good job in the introduction of highly educated and highly skilled talents
increase the proportion of high-quality employees and provide new drivers for the development of the enterprise.
(6) Efficient operation and management advantages
The Company adheres to system construction integrates digitization intelligence standardization process
and regulation into operations; actively strengthens IT construction; comprehensively integrates business links such
as sourcing production inventory and sales; and constantly improves the rapid response ability. The Company has
25 / 276 Full Text of 2024 Annual Report
established a complete set of effective management systems in combination with actual situations defined post
responsibilities and work flow and effectively reduced the operation costs through fine management. Through years
of efforts the Company’s construction in systems such as information performance appraisal and credit
management are at the leading position in the industry. In 2024 the company garnered multiple accolades thanks
to its exceptional capabilities:
IV. Analysis of Main Business
1. Overview
Rongsheng Petrochemical is one of the leading private petrochemical enterprises in China. It is mainly engaged
in the research development production and sales of all kinds of oil products chemicals and polyester products. It
has established seven production bases in Bohai Economic Rim Yangtze River Delta Economic Circle and Hainan
Belt and Road Economic Circle forming five industrial chains of polyester engineering plastics new energy high-
end polyolefin and special rubber. It is one of the important producers of polyester new energy materials
engineering plastics and high value-added polyolefin in Asia with the largest production capacity of chemicals such
as PX and PTA in the world.
(1) Main products
The Company’s products are rich in variety and complete in specifications covering many fields such as new
energy new materials organic chemicals synthetic fibers synthetic resins synthetic rubber and oil products
basically achieving “from a drop of oil to everything in the world” and constantly upgrading and improving the
industrial chain of new materials on the basis of the existing super-large integrated refining base worldwide and
complete upstream and downstream facilities.
26 / 276 Full Text of 2024 Annual Report
At present the main products are shown in the following figure:
Note: products marked by dotted line / dotted box are products under the plan.
(2) Operation measures
China’s economy demonstrated remarkable resilience and innovative vitality amid pressures and difficulties
consolidating stable growth while making solid progress. The petrochemical industry maintained fundamental
27 / 276 Full Text of 2024 Annual Report
stability with breakthrough advancements where technological innovation and low-carbon transformation emerged
as core drivers for further industrial development. During the reporting period under the leadership of the Board of
Directors the Company firmly seized the opportunity stabilized the “core business foundation” of existing
industries explored high-end materials as new growth frontiers focused on promoting the “three-oriented”
transformation of internationalization greening and digital-intelligence and made solid progress in high-quality
development.
1. Advance industrial layout through vertical and horizontal planning
In 2024 we steadfastly implemented our “Vertical-Horizontal” development strategy achieving steady
progress in international cooperation while pursuing differentiated growth. Establish “new pillars” for global
collaboration. This year the Company signed the Memorandum of Cooperation and the Collaboration Framework
Agreement with Saudi Aramco to jointly explore joint operations of Zhongjin Petrochemical and Jubail Refining
and Chemical Company expand overseas markets through mutual equity participation and joint projects by
subsidiaries tap the cooperation potential in operation management resource advantages sales channels and
cutting-edge technologies strengthen the complementarity of industrial chains enhance the global market share
enhance the anti-risk ability of transnational operations and ensure the sustainable growth of the Company in its
globalization journey. Accelerate “milestones” by project construction. This year ZPC put into production a pilot
plant of α-olefins with an annual output of 1000 tons laying the foundation for the whole industrial chain of POE;
The successful trial production of 100000 tons/year rare earth cis-polybutadiene rubber plant marked an important
step for the Company in the field of green tire materials; The 380000 tons/year polyether plant produced qualified
products the 1500000-ton multifunctional polyester chip project was successfully put into production and the
Jintang new materials and other projects were promoted in an orderly manner which continuously expanded the
Company’s differentiated high-end and green product matrix.
2. Enhance the whole chain with digital intelligence and lean management
In 2024 guided by our operational philosophy of “stability based efficiency prioritized” we relentlessly
pursued cost reduction and efficiency improvement achieved remarkable results through lean management and
realized “zero accidents” for safe production throughout the year. Optimize and tighten the “benefit valve” in the
whole chain. This year we adhered to the market efficiency of products as the guide adjusted the processing scheme
flexibly in time carried out in-depth optimization of the whole industrial chain and completed three “oil conversion”
processing technologies and process reserves for “light medium and heavy” components of catalytic gasoline; We
researched and implemented cross-flow filtration technology of oil residue which continuously improved the
technical economy of slurry bed; We improved the product yield optimized the production process and
continuously enhanced the market adaptability of the integrated refining and chemical operation scheme. Drive and
activate “new momentum” by digital intelligence. This year Zhejiang Petrochemical’s “Digitization Project ofRefining and Chemical Integration” was selected as a national advanced manufacturing project and the construction
of MES energy module continued to advance realizing the informationization and digitalization of energy
management; The advanced control project was put into full use which became an important means to save energy
reduce consumption tap potential and increase efficiency. The reservation and delivery system for hazardous
chemicals of Zhongjin Petrochemical was officially put into operation and the automatic license plate recognition
system for loading vehicles of Yongsheng Technology was successfully put into use. Information technology is
deeply integrated with the Company’s business processes and various measures are taken to boost cost reduction
and efficiency improvement.
3. Enhance quality and efficiency through low-carbon transformation and innovation
In 2024 we led the industrial upgrading with technological innovation and empower sustainable development
with clean and low carbon. Enter the “Fast Lane” via technological breakthroughs. This year the Company invested
RMB 5.101 billion in R&D significantly enhanced its independent R&D innovation capability continued to build
28 / 276 Full Text of 2024 Annual Report
a collaborative innovation ecology of “Industry-University-Research-Application” deeply participated in the
formulation of industry standards and was awarded the “Zhejiang High-tech Enterprise R&D Center” which further
strengthened the supporting force of the technology platform. Multiple self-developed new products passed
certification and with Zhejiang Petrochemical’s containerized marine packaging successfully delivered
technological innovation continued to elevate its product competitiveness. A “new background” was painted via
low-carbon transformation. This year the Company invested RMB 273 million in environmental protection and
ZPC led the country in energy efficiency and water efficiency of many key products for two consecutive years. Its
industrial chain of high-value utilization of carbon dioxide realized the synergy of energy saving pollution reduction
carbon reduction and high-value utilization of carbon dioxide and continuously transformed environmental benefits
into economic benefits. Yisheng Dahua carried out major energy-saving and water-saving technical transformation
projects and won the title of “Dalian Water-saving Enterprise”; Shengyuan Chemical Fiber Distributed Photovoltaic
Power Generation Project achieved grid-connected operation which can provide 15 million kWh of green electricity
every year; Yongsheng Technology’s boiler fuel was cleaned and upgraded effectively reducing the impact of
volatile gases on the environment. With the exploration and practice in low-carbon transformation Rongsheng
Petrochemical’s ESG rating was upgraded from B to BBB and its CDP rating also achieved excellent improvementranking among the top in the global general and diverse chemicals industry and it was awarded as “the Best ListedCompany for ESG Management in 2024”.
(3) Operation synergy
1. Controlling shareholder
Rongsheng Holdings ranks 138th among the top 500 enterprises in the world 40th among the top 500 Chinese
enterprises and 5th among the top 500 private enterprises in China. At present the Group has listed companies such
as Rongsheng Petrochemical (stock code: 002493) and Ningbo United (stock code: 600051) with its business
involving oil and gas upstream and trading coal logistics equipment manufacturing process engineering
technology real estate venture capital and other fields; Rongtong Logistics a subsidiary is a national AAAA-level
logistics enterprise which has a mature and stable carrier cooperation operation platform; Suzhou Shenghui
Equipment Co. Ltd. a holding company specializes in the design manufacture and sales of pressure vessels
cryogenic equipment spherical tanks and marine equipment; Shanghai Huanqiu Engineering Co. Ltd. a joint stock
company of the Company has extremely rich experience in engineering EPC; A number of projects invested by
Zhejiang Rongsheng Venture Investment Co. Ltd. not only achieved good economic benefits but also promoted
the synergy of the industrial chain; In addition a number of other investments are also constantly advancing.
2. Strategic investors
Rongsheng Petrochemical and Saudi Aramco form the upstream and downstream in the industry and maintain
a good foundation for cooperation. The two companies will carry out all-round consultations and cooperation such
as: * Frontier technology sharing cooperation: The two companies will sincerely discuss to complement each
other’s technologies through their advantages jointly develop new technologies processes and equipment to meet
the future market demand and promote them on the market and at the same time share the necessary resources for
research and development; * Stable crude oil supply guarantee: Saudi Aramco supplies ZPC with high-quality
crude oil with the promised quantity of 480000 barrels per day and provides the Company with production raw
materials such as naphtha mixed xylene and straight-run fuel; * Interest-free purchase credit line: A credit line
with a term of 20 years and an amount of USD 800 million which can be increased during the cooperation period
will be provided which is conducive to improving the capital utilization efficiency of ZPC and will have a positive
impact on improving its profitability; * Flexible cooperation in crude oil storage: Though amicable negotiations
of related parties the Company provides Saudi Aramco with crude oil storage tanks and related facilities in
Zhoushan and Saudi Aramco needs to maintain a crude oil inventory of not less than 1.5 million metric tons which
is helpful to ensure the crude oil supply of ZPC; * Broad global sales channels: Relying on overseas sales channels
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of Saudi Aramco the Company can further expand the international market of its products and deepen strategic
cooperation with overseas customers. Similarly with the Company’s deep-seated resources for many years Saudi
Aramco can also quickly enter the relevant international and domestic markets.In addition Rongsheng Petrochemical planned to acquire 50% equity in SASREF Refinery a wholly-owned
subsidiary of Saudi Aramco in Jubail Saudi Arabia and participate in its expansion. This “powerful alliance”
achieves the advance of raw material supply and the expansion of global sales channels promotes resource sharing
and industrial chain coordination and jointly builds an industrial ecology with mutual benefits and win-win situation.As a practitioner of the “Belt and Road Initiative” Rongsheng Petrochemical driven by the dual drivers of “goingout” and “attracting investment” has established a strategic fulcrum in the Middle East laid out a supply chain
network around the Indian Ocean and attracted international strategic funds to invest in China for long term
injecting continuous vitality for its prosperous development.
3. Refining and chemical sector
3.1. ZPC
With the goal of building a “private green international trillion-level and flagship” base ZPC’s refining and
chemical integration project has been planned and unified at one time. At present it has formed a world-class
refining and chemical integration base with a processing capacity of 40 million tons/year for oil refining 8.8 million
tons/year for paraxylene and 4.2 million tons/year for ethylene among which the single scale for hydrogenation
reforming and PX is the largest in the world. The project is designed to maximize the refining and chemical
integration provide high-quality raw materials for downstream chemical devices maximize the production of
aromatic hydrocarbons (PX) and chemical products and minimize the output of fuel. The yield of fuel is lower than
the industry average with outstanding effect of reducing oil and increasing chemical. Meanwhile through the
optimal utilization of energy resources such as steam and water and full use of the low-temperature waste heat of
the device it builds the world’s largest thermal seawater desalination device to realize energy saving and emission
reduction. The refining and chemical integration rate of the project ranks first in the world far higher than the
average level of petrochemical industry integration in China and the scale and integration degree of the base are at
a leading position in the world.ZPC’s crude oil has strong adaptability and can be stored according to light medium heavy and acid
transported separately and refined separately. Combined with blending means it can process 80%-90% of the global
crude oil which greatly enhances its adaptability to oil price fluctuations and offers obvious advantages compared
with other domestic leading enterprises. It has flexible product structure and mature and reliable technology and
its main device scale and technical and economic indicators represent the most advanced level worldwide. As a
result of one-time overall planning oil refining aromatic hydrocarbon and ethylene fully demonstrate the concept
of “molecular oil refining” and make the best use of the material. All olefins are deeply processed into chemicals
with high import dependence which makes them have stronger ability to cope with the industry cycle.As the upstream industry of the polyester industry chain ZPC has successfully established the last link of the
whole process from a drop of oil to a piece of fiber for the Company and formed the great advantage of upstream
and downstream integration of the polyester industry. Located in Zhejiang Free Trade Zone ZPC enjoys various
preferential policies in the free trade zone and has continuously obtained the export quota of refined oil. Moreover
East China is the main consumption region of terminal chemicals. The Yangtze River Delta contains about 70% of
China’s production capacity of plastics and chemical fibers with obvious regional advantages. Yushan Island
where it is located is an uninhabited island. Therefore it is convenient for development and utilization and will
have little impact on the surrounding society and broad development space in the future; Being close to the consumer
market ZPC enjoys a prominent position advantage as a sea-land hub at the Ningbo-Zhoushan port with convenient
access to bulk materials and products and a significantly low transportation costs.
3.2. Zhongjin Petrochemical
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Zhongjin Project which was put into operation in August 2015 is an aromatic hydrocarbon combined plant
currently in service with leading single scale in the world. This project pioneered the process of making aromatic
hydrocarbon products with fuel oil (cheaper than naphtha) as raw material and adopted a new technical route which
can solve the shortage of global naphtha supply greatly save the procurement cost of raw materials introduce the
concept of “circular economy” and innovatively use the by-product hydrogen to process fuel oil into naphtha.The new disproportionation catalyst jointly developed by Zhongjin Petrochemical and Tongji University has
been successfully applied for the first time in ZPC 2# disproportionation plant (3.5 million tons/year). The catalyst
has the excellent characteristics of “three highs” namely high space velocity high yield and high conversion and
utilization rate of heavy aromatic hydrocarbon and has good operation stability whose comprehensive performance
and technical indicators have reached the advanced level in the world at present realizing import substitution which
reflects the staged progress of the Company’s scientific research and innovation ability and level and is of great
significance for continuously improving the technical level of production equipment improving the conversion and
utilization efficiency of raw materials reducing consumption and production costs and realizing the aromatic
hydrocarbon production from large to strong and achieving green efficiency.
3.3. Rongsheng New Materials (Zhoushan)
As the expansion area of Zhoushan Green Petrochemical Base relying on ZPC and Ningbo Zhongjin
Petrochemical it extends the industrial chain downstream and develops fine chemicals and new chemical materials.The company focuses on developing downstream products of the existing industrial chains of ZPC and Zhongjin
to achieve the value-added and efficiency increase in raw materials of Zhongjin and ZPC. At present the project
has started construction and related work is progressing in an orderly manner.
4. PTA sector
Since the establishment of the first private PTA production line in 2002 the Company has insisted on
independent innovation successively developed and built the first domestic PTA process package and production
equipment with independent intellectual property rights and realized the first domestic application of core
equipment such as large-scale oxidation reactors and high-speed pumps which changed the long-term dependence
of China’s PTA industry on the introduction of complete sets of foreign patented technology and promoted a large
number of domestic equipment manufacturers to achieve leap-forward development. At the same time we have
continuously carried out technical transformation on existing equipment to improve production efficiency and
product quality and at the same time continuously optimized raw material consumption to ensure efficient use of
resources. Meanwhile the Company has steadily promoted the launch of new production capacity on the one hand
to meet the growing market demand and on the other hand to stabilize the Company’s leading position in the
polyester industry.
5. Polyester sectorWith the general policy of “safety and environmental protection quality improvement cost reduction andbenefits increase” the Company focuses on strengthening pandemic prevention and control implementing hidden
danger treatment boosting process optimization and promoting lean production management. Yongsheng
Technology’s 250000-ton functional polyester film expansion project has been successfully put into production
and the company’s annual polyester film production capacity has reached 430000 tons ranking the top four in
China. The Company’s PTA production enterprises make full use of the advantages of the Company’s complete
industrial chain integration to continuously tap the potential and increase benefits to produce polyester bottle chips.At present its production capacity ranks first in China with part of PTA production capacity consumed locally
which enhances the competitiveness of the enterprise and improve the economic benefits. The 500000 tons of
differentiated fiber project of Shengyuan Phase II which mainly produces flame-retardant functional and dye-free
fiber products is also in progress.
31 / 276 Full Text of 2024 Annual Report
2. Income and cost
(1) Composition of operating revenue
Unit: RMB
20242023
Year-on-year
Proportion to Proportion to increase
Amount operating Amount operating (decrease)
revenue revenue
Total operating
revenue 326475162608.88 100% 325111614268.09 100% 0.42%
By industry
Petrochemical
Industry 289301177635.53 88.61% 296851027280.87 91.31% -2.54%
Polyester
chemical fiber 18507338180.98 5.67% 14717875220.67 4.53% 25.75%
industry
Trade and
others 18666646792.37 5.72% 13542711766.55 4.16% 37.84%
By product
Oil refining
products 117855712431.38 36.10% 121884564630.35 37.49% -3.31%
Chemical
products 121767959624.54 37.30% 121776659403.66 37.46% -0.01%
PTA 49677505579.61 15.21% 53189803246.86 16.36% -6.60%
Polyester
chemical fiber 18507338180.98 5.67% 14717875220.67 4.53% 25.75%
film
Trade and
others 18666646792.37 5.72% 13542711766.55 4.16% 37.84%
By region
China 280740961976.87 85.99% 276231426885.63 84.97% 1.63%
Overseas 45734200632.01 14.01% 48880187382.46 15.03% -6.44%
The Company’s total chemical production capacity (including joint ventures) reached 59.27 million tons with
a corresponding total chemical sales revenue of RMB 278.6 billion in 2024.
(2) Industry product region and sales mode accounting for more than 10% of the Company’s operating
revenue or operating profit
□Applicable □ Not applicable
Unit: RMB
Year-on-year Year-on-year
Gross increase Year-on-year increase
Operating revenue Operating cost profit (decrease) in increase
margin operating (decrease) in
(decrease) in
operating cost gross profit revenue margin
By industry
Petrochemic 289301177635.53 252706674885.15 12.65% -2.54% -2.85% 0.27%
32 / 276 Full Text of 2024 Annual Report
al Industry
Polyester
chemical
fiber 18507338180.98 18195490832.19 1.68% 25.75% 27.73% -1.52%
industry
Trade and
others 18666646792.37 18088378163.21 3.10% 37.84% 35.03% 2.01%
By product
Oil refining
products 117855712431.38 97149285936.52 17.57% -3.31% -0.04% -2.69%
Chemical
products 121767959624.54 105205550952.93 13.60% -0.01% -3.84% 3.44%
PTA 49677505579.61 50351837995.70 -1.36% -6.60% -5.94% -0.72%
Polyester
chemical 18507338180.98 18195490832.19 1.68% 25.75% 27.73% -1.52%
fiber film
Trade and
others 18666646792.37 18088378163.21 3.10% 37.84% 35.03% 2.01%
By region
China 280740961976.87 243977718284.90 13.10% 1.63% 1.59% 0.04%
Overseas 45734200632.01 45012825595.65 1.58% -6.44% -5.46% -1.02%
In the case that the statistical standards for main business data of the Company are adjusted during the reporting
period the main business data of the Company in recent 1 year are subject to those after the adjustment of the
statistical standards at the end of the reporting period
□ Applicable □ Not applicable
Operating revenue or net profit generated from overseas operations accounted for more than 10% of the Company’s
audited operating revenue or net profit in the most recent fiscal year
□ Yes □ No
(3) Whether revenue from physical sales is higher than service revenue
□Yes □No
Year-on-year
Industry Items Unit 2024 2023 increase
(decrease)
Sales quantity ton 48334955.18 49168141.42 -1.69%
Petrochemical Production ton 56266126.43 55993404.94 0.49%
Industry quantity
Inventory ton 966819.06 1116062.63 -13.37%
Sales quantity ton 2847303.37 2114331.59 34.67%
Polyester chemical Production ton 3792595.14 3480230.85 8.98%
fiber industry quantity
Inventory ton 190226.58 135913.59 39.96%
Description of reasons for relevant data increasing/decreasing by more than 30% year-on-year
□Applicable □ Not applicable
During this reporting period the sales volume and inventory of polyester chemical fiber products increased
33 / 276 Full Text of 2024 Annual Report
significantly compared to the same period last year mainly due to the commissioning of the subsidiary Yisheng
Dahua’s 500000-ton multi-functional polyester chip expansion project.
(4) Performance of major sales and procurement contracts signed by the Company as of the current
reporting period
□ Applicable □ Not applicable
(5) Composition of operating costs
Industry and product categories
Unit: RMB
20242023
Year-on-year
Industry Items Proportion to Proportion increase
Amount operating Amount to operating (decrease)
cost cost
Petrochemical Raw
Industry material 230087963447.61 91.05% 239198623632.96 91.96% -0.91%
Petrochemical Labor
Industry wage 1629097178.37 0.65% 1624611209.04 0.62% 0.02%
Petrochemical Deprecia
Industry tion 11485497958.88 4.54% 9904752215.65 3.81% 0.74%
Petrochemical
Industry Energy 8088775842.84 3.20% 8186332743.25 3.15% 0.05%
Petrochemical
Industry Other 1415340457.45 0.56% 1203442892.56 0.46% 0.10%
Total 252706674885.15 100.00% 260117762693.46 100.00% 0.00%
Polyester
chemical fiber Raw
industry material
16700812031.9191.79%12827143217.2190.04%1.74%
Polyester
chemical fiber Labor wage 243245412.13 1.34% 290364973.60 2.04% -0.70% industry
Polyester
chemical fiber Depreciation 222943670.72 1.23% 213161372.30 1.50% -0.27% industry
Polyester
chemical fiber Energy 736617398.02 4.05% 717988984.46 5.04% -0.99%
industry
Polyester
chemical fiber Other 291872319.41 1.60% 197028229.99 1.38% 0.22%
industry
Total 18195490832.19 100.00% 14245686777.56 100.00% 0.00%
Unit: RMB
20242023
Product Year-on-year Proportio Proportio
categories Items increase Amount n to Amount n to (decrease)
operating operating
34 / 276 Full Text of 2024 Annual Report
cost cost
Oil refining Raw material 87489852797.32 90.06% 88386630452.32 90.95% -0.89% products
Oil refining Labor wage 718718241.18 0.74% 728940877.61 0.75% -0.01% products
Oil refining
products Depreciation
5051388916.495.20%4204103221.854.32%0.88%
Oil refining Energy 3431518474.45 3.53% 3497104097.06 3.60% -0.07% products
Oil refining Other 457807507.08 0.47% 368995276.29 0.38% 0.09% products
Total 97149285936.52 100.00% 97185773925.13 100.00% 0.00%
Chemical Raw material 94982926212.71 90.28% 99869923999.03 91.29% -1.01% products
Chemical Labor wage 786101524.14 0.75% 813044055.81 0.74% 0.01% products
Chemical Depreciation 5485471675.60 5.21% 4726636911.00 4.32% 0.89% products
Chemical Energy 3530012517.16 3.36% 3642936514.85 3.33% 0.03% products
Chemical Other 421039023.32 0.40% 349677476.96 0.32% 0.08% products
Total 105205550952.93 100.00% 109402218957.65 100.00% 0.00%
PTA Raw material 47615184437.58 94.56% 50942069181.62 95.17% -0.61%
PTA Labor wage 124277413.05 0.25% 82626275.61 0.15% 0.10%
PTA Depreciation 948637366.79 1.88% 974012082.80 1.82% 0.06%
PTA Energy 1127244851.23 2.24% 1046292131.34 1.95% 0.29%
PTA Other 536493927.05 1.07% 484770139.31 0.91% 0.16%
Total 50351837995.70 100.00% 53529769810.68 100.00% 0.00%
Polyester
chemical Raw material 16700812031.91 91.79% 12827143217.21 90.04% 1.75%
fiber film
Polyester
chemical Labor wage 243245412.13 1.34% 290364973.60 2.04% -0.70%
fiber film
Polyester
chemical Depreciation 222943670.72 1.22% 213161372.30 1.50% -0.28%
fiber film
Polyester
chemical Energy 736617398.02 4.05% 717988984.46 5.04% -0.99%
fiber film
Polyester
chemical Other 291872319.41 1.60% 197028229.99 1.38% 0.22%
fiber film
35 / 276 Full Text of 2024 Annual Report
Total 18195490832.19 100.00% 14245686777.56 100.00% 0.00%
(6) Whether the scope of consolidation has changed during the reporting period
□Yes □No
1. Increase in consolidation scope
Company name Acquisition method Date of equity acquisition
Taizhou ZPC Sales Co. Ltd. New establishment February 27 2024
Zhejiang Rongyi Chemical Fiber Co. Ltd. New establishment March 8 2024
Zhoushan ZPC Logistics Co. Ltd. New establishment April 12 2024
2. Decrease in consolidation scope
Company name Acquisition method Date of disposal
Zhejiang Zhuosheng Industry & Trade Co. Ltd. Industrial and commercial deregistration July 31 2024
(7) Significant changes or adjustments to the Company’s business products or services during the
reporting period
□ Applicable □ Not applicable
(8) Major sales customers and major suppliers
Major sales customers
Total sales amount of the top five customers (RMB) 64652232947.57
Proportion of total sales amount of the top five customers in total annual sales 19.80%
Proportion of related party sales in total annual sales among the top five customers 2.59%
Top 5 customers of the Company
S/N Customer Sales amount (RMB) Proportion in total annual sales
1 Customer 1 33393607220.42 10.23%
2 Customer 2 9696945211.33 2.97%
3 Customer 3 8456472338.73 2.59%
4 Customer 4 7605774083.31 2.33%
5 Customer 5 5499434093.78 1.68%
Total -- 64652232947.57 19.80%
Other information of major customers
□ Applicable □ Not applicable
Major suppliers
Total purchase amount of the top five suppliers (RMB) 175039725839.41
Proportion of total purchase amount of the top five suppliers 58.24%
in total annual purchase amount
Proportion of related party purchase amount in total annual 38.69%
36 / 276 Full Text of 2024 Annual Report
purchase amount of the top five suppliers
Top 5 suppliers of the Company
S/N Supplier Purchase amount (RMB) Proportion in total annual purchase amount
1 Supplier 1 102576943938.97 34.13%
2 Supplier 2 22647066689.22 7.54%
3 Supplier 3 21526429095.49 7.16%
4 Supplier 4 14571811000.00 4.85%
5 Supplier 5 13717475115.73 4.56%
Total -- 175039725839.41 58.24%
Other information of major suppliers
□ Applicable □ Not applicable
3. Expenses
Unit: RMB
2024 2023 Year-on-year increase Description of major (decrease) changes
Sales expenses 193112300.81 160462247.93 20.35%
Administrative 976713694.79 908998018.22 7.45%
expenses
Financial expenses 7131339847.35 8202127726.14 -13.06%
R&D expenses 5101483285.60 6555282352.50 -22.18%
4. R&D investment
□Applicable □ Not applicable
37 / 276 Full Text of 2024 Annual Report
Name of main R&D Project Expected impact on
project Project purpose progress Objectives to be achieved the company’s future development
1. Precisely control C6 alkane content in raw materials
through naphtha hydrotreating plant to increase aromatics
Based on the molecular production by over 3t/h.refining concept conduct Review the research progress and patent layout of The project Improve raw material
research and application of domestic and global POE leading enterprises to identify has been 2. Increase C11 content in reforming raw materials from utilization and
reforming raw material technology gaps and predict future development trends implemented 1.4-1.8% to above 2.8%; Increase C11 content in increase high-value-
optimization technology reformate from 1.0-1.2% to above 2.6%; added products
3. Adjust reaction severity to identify the optimal
conversion rate point for C7 alkanes.Establishment and
implementation of Achieve intelligent
intelligent control and Assist dominant enterprises in Zhoushan’s POE industrial The project Real-time online monitoring of multiple units achieving operation and
management platform for chain to improve patent layout strategies and avoid has been electronic inspection as well as online condition detection maintenance and
hundred-unit scale intellectual property risks. implemented and analysis of centrifugal units reduce management
reforming units costs
1. Adhere to the philosophy of “minimizing oil productsmaximizing chemical output and optimizing economicbenefits” effectively achieve heavy oil upgrading
increase yields of aromatics and ethylene raw materials
and enhance overall project profitability.
(1) Solidify and form a set of optimization methods for
2. While fully utilizing reformer hydrogen and hydrogen- processing routes of heavy oils (residue oil sludge heavy
rich streams optimize the raw material structure of aromatics light/heavy wax oils).Research and application hydrogen production plant. The project Optimize product
of oil reduction and (2) Enhance the processing efficiency of heavy oil structure and increase 3. Refine LPG to highlight the “molecular refining” has beenchemical increase process: facilitate crude oil upgrading and process low-cost chemical product concept follow the optimization approach of “material implemented inferior crude oil. ratiosegmentation plant specialization and precise matching”
maximize the utilization of primary and secondary (3) Further reduce oil product output while targeting PX
processing resources. production to over 8 million tons.
4. Optimize the product structure for heavy oil upgrading
across hydrocracking plants and improve production
planning to increase heavy naphtha yield thereby boosting
aromatics production.
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5. Upgrading and diversifying ethylene cracking raw
materials to achieve high yields and improved
profitability.
1. Optimize and adjust process routes (including new 1) Achieve the 2024 compliance target for energy
construction or capacity expansion) to achieve energy consumption across all refining plants in 2024
conservation and carbon reduction through technical
modifications and measures. 2) Maintain comprehensive energy consumption below 138kgoe/t in 2024.Research and practice of 2. Establish a sound energy management organization develop management systems rationally organize The project 3) Achieve an operational rate of over 80% for energy-
Reduce carbon
energy-saving and carbon emissions and
reduction technology production and strengthen measurement management.has been saving equipment.implemented achieve green
3. Analyze and evaluate plant energy efficiency levels 4) Ensure valley electricity usage time exceeds 85% for transformation
from multiple dimensions including process flow off-peak power consumption equipment across all
equipment/ facility technical modifications and operating departments.operational optimization to identify energy conservation 5) Control the total flare emission volume within 45000
and carbon reduction opportunities. Nm3/h.
1. Optimize cracking furnace operation to stabilize CO and
acetylene content in the C2 hydrogenation reactor raw 1. Ensure long-term high-load operation of ethylene plant;
Research on long-term materials;
operation of C2 The project 2. Maintain stable operation with C2 hydrogenation inlet Extend catalyst life
hydrogenation reactor in 2. Adjust reactor inlet temperature to optimize acetylene has been flow rate below 530 t/h; and stabilize
ethylene plant #3 selectivity; implemented 3. Control acetylene content at C2 hydrogenation outlet production
3. Optimize reactor operation to ensure qualified acetylene ≤0.5 ppm
indicators at the outlet.
1. Increase residence time and contact area by adding an
Research on non-methane additional catalyst layer to enhance NMTH removal Reduce pollutant
total hydrocarbon efficiency; emissions and
(NMTH) control 2. Install gas distribution devices at reactor inlet to ensure Ongoing 1. Maintain NMTH content <15 mg/kg enhance
technology for #1 ethylene effective treatment of high-concentration NMTH under environmental
glycol thermal oxidizer: low-load conditions so as to meet environmental emission performance
standards.Technical research on For the first batch of 13 overhauled plants the Refining &
achieving standard- Aromatics Division implements technical breakthroughs
compliant wastewater optimized plans and detailed operations to reduce The project
High-pressure steam: RMB 138.6/ton. Reduce pollution &
discharge during wastewater generation at source organizes all overhaul has been Low-pressure steam: RMB 104/ton. meet environmental
shutdown overhaul of plants for controlled discharge of wastewater which implemented Wastewater treatment cost: RMB 4.81/ton. standards
refining & aromatics unit ensures manageable outflow volume and compliance with
discharge standards lowers treatment costs maintains
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safe low-level operation of all wastewater storage tanks
an enables stable and efficient wastewater plant
performance thus contributing to the company’s efforts to
meet the standards and achieve production in 2024.
1. Analyze corrosion-prone points in low-temperature
Corrosion study and methanol wash systems and proposed actionable solutions. Extend equipment
mitigation in methanol- Maintain wastewater pH between 7-8 from both methanol- service life and
water separation tower & 2. Implement modifications to stabilize pH at 7 in Ongoing water separation tower and ammonia wash tower reduced maintenance
ammonia wash tower methanol-water separation tower and ammonia wash costs
tower and reduce equipment corrosion
A comprehensive operational analysis is conducted on the
waste caustic incineration unit with primary research
focused on: thinning of refractory bricks at the incinerator
base reduction in lining thickness of the waste heat boiler
(WHB) potential brick damage risks first-pass bottom
blockages caused by the WHB suboptimal structural 1. Guarantee compliance with flue gas emission standards. Successfully resolved
Bottleneck study and design of impulse wave soot blowers operational failures Total particulates <10mg/m3 (GB 18484-2020) NOx processing
optimization of waste of the propane gas system in soot blowers ineffective <80mg/m3 (GB 18484-2020 normalized to 11% dry bottlenecks and
caustic incineration unit in foam zone formation in the circulating slurry of the Ongoing oxygen basis); enhance
POSM plant scrubber resulting in poor absorption performance severe 2. Maintain combustion capacity at 7.4t/h to meet the environmental
mist entrainment at the foam zone outlet inadequate baffle operation requirements of main plant. protection efficiency
performance in the washing tower with significant mist
carryover and excessive vibration levels due to fouling
accumulation on the induced draft fan impeller. Targeted
optimization measures are proposed to address the
identified issues.
1. After the normal commissioning of the #3 slurry-bed
vacuum system the overhead gas pressure can be properly
This project implementation involves pressurizing the integrated into the rich gas compressor. Recover gas
Research on overhead gas overhead gas from the #3 slurry-bed vacuum tower to The project resources to achieve
recovery scheme for #3 0.05MPa by using the vacuum extraction system followed has been 2. If #3 slurry-bed overhead gas integrated into the rich gas energy conservation
slurry-bed vacuum tower by integration into the rich gas compressor system for implemented compressor operates properly plans will be made to and consumption
energy recovery purposes. optimize the process flow of overhead gas from #1 and #2 reduction
slurry-bed vacuum towers similarly redirecting them to
the rich gas compressor.Research on efficient 1. Adjust the structure of #2 waxy oil catalytic raw The project 1. LPG isobutane content in #2 catalytic plant is ≤23% Improve processing
processing of high-sulfur material and replace catalysts to reduce isobutane content has been and stabilized gasoline olefin content is ≥16%. efficiency and reduce
waxy residue in LPG and increase olefin content in stabilized gasoline. implemented 2. Carbon residue in fourth-sidecut oil from three slurry- sulfur content
40 / 276 Full Text of 2024 Annual Report
2. Optimize waxy oil hydrotreating raw materials by bed hydrotreating plants is ≤3%
adding transfer process for #2 atmospheric-vacuum unit’s C7 insolubles in fourth-sidecut oil from three slurry-bed
third-sidecut and fourth-sidecut waxy oils enabling third- hydrotreating plants is ≤3000ppm
sidecut to exclusively supply #2 catalytic unit while
fourth-sidecut feeds the coker for processing. 3. Heavy naphtha yield in two waxy oil hydrocracking plants is ≥160t/h and conversion rate is ≥85%.
3. Optimize operations of three slurry-bed vacuum towers
to increase plant capacity improve sidecut product
quality and achieve long-term stable operation of plant.Research on
characterization and
recovery technology of 1. Analysis of pollution sources and causes of NMTH 1. Achieve NMTH emission standards: NMHC<60mg/m3 Optimize waste gas
non-methane total OOT; Ongoing NOx<50mg/m3 SO?<5mg/m3; treatment to realize
hydrocarbons (NMTH) in 2. Modification plan for catalytic oxidizer. 2. Achieve hourly electricity savings of 800kW. resource recovery
catalytic oxidizer of
POSM plant
1. Develop specialized HP648ET material meeting
technical specifications for thin-wall injection molding;
2. Explore high-melt production control parameters for
Development of new Spherizone process and impact of ethylene on
HP648ET thin-wall polymerization reaction to ensure stable production of The project Develop lightweight
injection molding material plant establish extruder control parameters and gradually has been Establish HP648ET production protocol. materials to expand
for #3/#4 polypropylene standardize process parameters; implemented application fields
plant
3. Monitor downstream customer usage and adjust
production parameters accordingly;
4. Achieve stable mass production.
1. Achieve automatic combustion air distribution control As the final
according to boiler load pressure temperature and other version of 1. Reduce high-frequency boiler operations by 50%;
parameters; APC 2. Decrease flue gas temperature and oxygen deviations at
2. Simulate combustion adjustment modes under various (Advanced furnace outlet;
Research and application boiler operating conditions for different coal qualities and Process Enhance automation
of boiler-turbine input into DCS system to establish automatic combustion 3. Reduce carbon content in boiler fly ash; Control) level and optimize
coordinated automation control; technical 4. Maintain pressure fluctuations of all steam supply energy management
3. Optimize main steam pressure control and adjustable agreement is grades <0.05MPa;
extraction steam pressure control logic for steam turbine still under 5. Achieve disturbance alarm and automatic regulation
and meet stable steam supply requirements; corporate- functions for steam pipeline network.
4. Implement steam pipeline network parameter level review
41 / 276 Full Text of 2024 Annual Report
fluctuation warning adjustment strategy recommendation with no
and automatic regulation. progress made
currently and
subsequent
work cannot
proceed
temporarily
resulting in
delayed
completion of
the research
project an
extension has
been applied
for.
1. Develop specialized high-stiffness polypropylene
material HP840N meeting technical specifications.Development of high- 2. Conduct technical exchanges with nucleating agent 1. Melt flow index range: 10-13g/10min; Develop high-
stiffness HP840N new suppliers to confirm agent type and compound formulation The project 2. Flexural modulus ≥1800MPa; performance
product for #3/#4 through laboratory evaluation. has been products and enhance implemented 3. Charpy notched impact strength (at 23°C) ≥3kJ/m
2;
polypropylene plant market 3. Monitor downstream customer usage and adjust 4. Estimated added profit per ton: RMB 50-200 competitiveness
production parameters accordingly.
4. Achieve stable mass production.
1. Resolve afterburner vibration issues
Combustion optimization 2. Optimize afterburner logic to enable single-burner The project Improve combustion
research for afterburner operation with load adjustment capability has been 1. Achieve stable single-burner operation with adjustable
system implemented load in afterburner system
efficiency and reduce
3. Analyze and troubleshoot flame detector failure causes fuel consumption
then implement corrective measures
1. Analyze and evaluate environmental emission Under the premise of maintaining regenerated flue gas SO2
Industrial research on bottleneck issues in the PTU removal system of catalytic ≤3000mg/Nm
3 it uses multi-scale technology to achieve
multi-scale solution for plant; The project uniform gas-liquid mixing increase wastewater-oxygen
Reduce wastewater
salt-containing 2. Develop feasible optimization technical solutions; has been contact time and complete the COD removal process
discharge and
enhance
wastewater in catalytic through aeration oxidation. The treated saline wastewater 3. Implement optimized technical solutions and conduct implemented
PTU plant achieves COD ≤50mg/L meeting environmental
environmental
system operational research and analysis to obtain optimal discharge requirements and resolving COD OOT issues in standards
process parameters. discharged saline wastewater.
42 / 276 Full Text of 2024 Annual Report
This research project leverages the acidic wastewatertreatment project based on the “Process Method and Plantfor Resource Recovery and Purification Utilization of
Sodium Salt-containing Organic Wastewater IncineratorTechnical research on Ash” technology and through pilot and industrial-scale 1. Cracking process of waste acid and removal of
improving separation tests applying ash from the 260 kt/year acrylonitrile plant
Resolved the
impurities in flue gas;
accuracy of light/heavy to neutralize acidic water in the SAR plant to develop an
The project challenge of ash
naphtha in atmospheric ash resource utilization process. This process not only
has been 2. Conversion of high-concentration SO2 plant heat disposal and reduce
replaces partial chemicals in acidic wastewater treatment implemented balance and factory-wide concentrated sulfuric acid hazardous waste tower but also serves as alkali supplementation in biochemical balance. storage risks
treatment processes achieving comprehensive ash
utilization providing retrofit basis for resolving ash
disposal issues in ZPC Phase I and II projects while
reducing wastewater treatment costs.Research on operation Optimize plant
quality improvement of Enhance reactor packing throughput by alkylation reactor
The project
caustic washing and thus reduce packing pressure drop. has been Reduce packing pressure drop in alkylation plant.performance and
alkylation plant implemented enhance product quality
Through process optimization eliminate primary
overhead cut water pumps P-0121A/B first-stage
Research on optimizing atmospheric overhead cut water pumps P-0122A/B and Reduce the number of cut water pumps from 6 to 2
overhead water injection second-stage atmospheric overhead cut water pumps P-
process and reducing 0123A/B add primary atmospheric overhead drainage The project
simplifying equipment management while saving 200000 Reduce equipment
corrosion rate in overhead drum V-0105 and primary atmospheric overhead drainage has been
kWh electricity annually (about RMB 120000). Reduce
pumps P-0121A/B collect the primary atmospheric implemented the sulfur-containing wastewater discharge by 15t/h with
corrosion and extend
vapor lines of #1 service life
atmospheric-vacuum plant overhead cut water first in the drainage drum then pump
the annual energy cost savings of RMB 3.281 million in
it out by drainage pumps - with part recycled back to the sulfur recovery plant.tower top as injection water for recycle and the other
cooled and sent off-plant.
1. Reduce density by propylene blending;
Research on using 1. Research on propylene blending ratio;
2. Mitigate reactor fouling and increase output;
The project
propylene as modifier in 2. Research on propylene’s impact on product quality; has been 3. Lower catalyst costs;
Optimize modifier
formulation to reduce
#1 LDPE plant 3. Research on propylene’s impact on production yield. implemented 4. Maintain production during propanal supply raw material costs interruptions;
5. Facilitate transition to 2220H grade production.
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1. Transition from 23050 to GF7750M2 Production. Shift
from three-reactor series configuration to two-reactor
parallel operation by addition and replacement. 2.Analysis of gostalen low-pressure slurry process
polyethylene fiber-grade product structural property to 1. R&D report;
Development of new fiber establish target product specifications and core key
grade product GF7750M2 indexes. Develop production protocol optimize
The project 2. Industrial trial report; Expand product line
in #2 HDPE plant polymerization conditions including optimization
has been 3. Expand PE product portfolio to capture its market share to strengthen market
research on temperature/pressure butene/ethylene ratio to implemented achieving ZPC’s product diversification and enhancing its competitiveness
obtain consistent MI/density base resin. 3. Optimize the competitiveness.extrusion and pelletization process conditions to stabilize
the product quality. 4. Research on product performance
evaluation and processing application market tracking
service; 5. Problem feedback and protocol optimization.
1. Transition from DFDA7042 to DZDZm-3606 via
reactor bed changeover with special additive replaced;
2. Analyze UNIPOL low-pressure gas-phase PE
metallocene pipe material DZDZm-3606 structural 1. R&D report;
property and define the index range and core key indexes
Development of new of the target product; 3. Additive system research. 2. Industrial trial summary;
metallocene-based Research on synergistic effects of multi-component The project 3. Meet the requirements for producing high-end Develop high-end
DZDZm-3606 in #2 FDPE functional agents (thermal-stable antioxidants molecular has been polyethylene products capture the metallocene products to dominate
plant lubricants processing rheology modifiers) to ensure implemented polyethylene market share achieve premiumization and niche markets
superior processability; 4. Adjust extrution and pelletizing diversification of polyethylene products and enhance
parameters to reduce shear heat and maintain whiteness; market competitiveness.
5. Research on product performance evaluation and
processing application market tracking service;
6. Problem feedback and protocol optimization.
1. Achieve nozzle integration by eliminating pelletizer 1. After stabilizing the pelletizing system based on
spray head nozzle seats and directly installing spray heads increasing the average annual load from 80% to 90%
Research on on pipelines. (excluding reduced head materials and nonconforming
comprehensive pelletizing 2. Improve infrared inspection system stability by adding materials for now) annual PC production can increase by Improve pellet
system modification for #2 new infrared monitoring system to pelletizers. Purchasing 20.8 kt. At a profit of RMB 1500/ton it generates quality and enhance
polycarbonate plant additional annual benefits of 20.8×1500 = RMB 31.2 product consistency 3. Reduce pelletizer vapor by installing new exhaust fans. million;
4. Upgrade the pellet cooling water filtration system to 2. Filter cloth savings can amount to RMB 0.68k/roll × 35
vibrating filtration for return water. rolls/month × 12 months = RMB 290k annually. Total
44 / 276 Full Text of 2024 Annual Report
5. Install new steam control valves for pelletizer water annual benefits: RMB 31.49 million.
systems.
6. Add control valves for overflow water spray water and
conveying water return lines.
7. Expand overflow water flowmeter range and convert
spray water flowmeters to remote transmission.
1. Currently there are exclusive spare part procurements
both domestically and globally with no precedents for
control and program optimization.Technical research 2. Modify and configure black-box system configuration 1. Ensure long-term safe and stable operation of the plant
optimization for turbine revise the signals of different types from both turbine and The project maintain operational capacity and prevent load reduction Enhance flow control
flowmeters in PX plant Venturi flowmeters add 2 control points as turbine has been or nonconforming products caused by flowmeters. accuracy and
adsorption tower pumping flowmeter alternatives and switch between the newly implemented 2. Save the spare part cost approximately by RMB 5 stabilize production
system added flowmeter and the turbine flowmeter. million per year.
3. Utilize high-precision onsite Venturi flowmeters to add
transmitter standard signals and replace original turbine
flowmeter frequency signals for control.
1. Adjust catalyst formulation to optimize reaction process
and improve product quality. Conduct technical exchanges
with industry peers and optimize the innovative catalyst
formulation system.
2. Implement devolatilization system in polycarbonate
extruder to remove residual phenol and by-products from
Development and quality the melt and remove the residual low-molecular-weight Develop high-1. Summarize and complete the transition plan for new
improvement of G2010 oligomers of polycarbonate. However design flaws cause performance oligomers to condense and clog pipelines in vacuum Ongoing product production; new product in products and enhance
polycarbonate plant condensate tanks. Onsite modifications have reduced 2. Meet the usage requirements of downstream customers. market oligomer outflow and improved devolatilization competitiveness
efficiency at the devolatilization outlet.
3. Most industry additive systems are pure powder
systems commonly suffering from inconsistent injection.Modifications to the additive feeding pipeline have
eliminated powder additive bridging risks and unstable
injection ensuring smooth operation of additive system.Development of This project achieves precise control of the heating Ongoing F2401 furnace oxygen content %vol ≤1.5% Save energy and
theoretical air-fuel ratio furnace air supply system by rapidly detecting CO in flue reduce consumption
45 / 276 Full Text of 2024 Annual Report
combustion optimization gas and converting the results into real-time control to improve corporate
technology for heating signals to adjust the frequency of the fan motor of heating economic efficiency.furnaces furnace thus achieving accurate control of the air supply
system of the heating furnace.Optimization research and After 10kV capacitor bank activation harmonic currents Ensure stable heater operation and reduce plant production
application of Watlow reach 30% or higher. Analysis confirms various issues The project fluctuations caused by heating system issues. Meet the
heaters for propane correlate with excessive harmonics and the solution has been petrochemical enterprise’s requirements for continuous
Ensure the stable
dehydrogenation reactor involves installing active power filters on the power implemented production; Enable the capacitor compensation plant
production of the
#2 buffer tank supply side to resolve harmonic-related problems and operation to improve grid power factor and reduce energy
plant.ensure continuous production of the enterprise. waste.In this project the inlet temperature of tail gas is between
200-250°C combined with the physical properties of wax 1. Emission standards: Recovery efficiency ≥97%; Control
Optimization of oil vapor oil and the matching calculation of air volume the condenser outlet temperature at approximately 55°C.recovery from slurry bed appropriate treatment technology namely primary The project Reduce energy waste
high-temperature residue condensation + demisting recovery process is adopted to has been 2. The overall service life of oil vapor pretreatment and achieve resource
tanks meet the requirements of this design considering wind implemented facilities shall be no less than 20 years with that of recycling
speed energy consumption and equipment cost and to vulnerable parts of at least 4 years.achieve an optimal efficiency.Development of corrosion This project installs an acid-base neutralizer injection Reduce equipment
reduction technology for equipment at the pre-adsorption vacuum system inlet to adjust the acidic environment in the vacuum pump Ongoing Adjust the acidic environment in pre-adsorption vacuum
corrosion extend
PSA vacuum pump outlet service life and
pipelines chamber to near-neutral conditions thereby reducing
pump chamber to near-neutral conditions. indirectly create
corrosion rate of vacuum pump. economic benefits.
1# Naphtha Hydroprocessing plant processes naphtha
from slurry beds #1 #2 and #3 (about 85 t/h) and the
Optimization research of 1# naphtha hydroprocessing plant processes all heavy The project nitrogen content in refined naphtha product is <0.5 μg/g. Optimize processing
slurry bed naphtha naphtha from three slurry beds while 2# naphtha has been routes and enhance
processing routes hydroprocessing plant blends slurry bed heavy naphtha. implemented 2# naphtha hydroprocessing plant blends 10%-15% slurry product value
bed heavy naphtha in raw materials and controls nitrogen
content in refined naphtha product <0.5 μg/g.Based on the raffinate tower’s feed volume and operating
Development of tray conditions this project develops a novel tray combining
technology for high liquid- sieve and valve tray characteristics through optimizing the Improve separation precision without altering operating Enhance tower
gas ratio & large liquid tray structure to adapt to high liquid-gas ratios and large Ongoing conditions. product quality.load conditions liquid loads while maintaining specified overhead/bottom
product quality and original tower heat load.
46 / 276 Full Text of 2024 Annual Report
Development of naphtha Enable the pre-hydrotreating plant to process coker Project Nitrogen content ≤2 mg/t combined processing Improve corporate
technology naphtha. completed Sulfur content ≤30 mg/t economic efficiency.
(1) Search for advanced catalysts at home and abroad and
select the catalyst that is more suitable for ZPC cracking Improve the
furnaces.Research on application of environmental
new denitration catalyst in (2) Optimize the monitoring means of the supporting
The project protection level of the
cracking furnace denitration system to ensure more accurate monitoring
has been Ammonia consumption is reduced by 10%.implemented enterprise and data. improve the
(3) Explore the technical characteristics of new catalysts corporate image.
and optimize the process operation.Research on corrosion & 1. Corrosion mechanism in coastal salt-spray atmospheric
mitigation in atmospheric environments; Significantly reduce corrosion-induced leaks in refinery Reduce equipment
environment for Ongoing plant composite air coolers and maintain dynamic wear and 2. Research on measures against atmospheric corrosion for
composite air coolers corrosion control. maintenance costs composite air coolers.Development and This project aims to upgrade the hydro-upgrading reactors
application of a new by developing a new high-efficiency cold hydrogen After implementing the new high-efficiency cold Ensure safe long-
reactor cold hydrogen distribution tray to improve fluid distribution inside the reactor reduce the reaction flow maldistribution and Ongoing
hydrogen distribution tray the average radial temperature term and stable
distribution tray for hydro- difference (T) at the catalyst bed outlet shall meet the operation of the
upgrading plant prevent localized hot spots that may cause reactor specification: Tmax ≤5°C. plant. “temperature runaway”.Projects under RMB 40
million (188 in total)
47 / 276 Full Text of 2024 Annual Report
R&D personnel of the Company
Items 2024 2023 Change
Number of R&D personnel 3842 3659 5.00%
Proportion of R&D personnel 20.14% 19.07% 1.07%
Educational structure of R&D personnel
Bachelor’s Degree 1986 1770 12.20%
Master’s Degree 96 106 -9.43%
Doctor’s Degree 5 6 -16.67%
Below Bachelor’s degree 1755 1777 -1.24%
Composition of R&D personnel by ages
30 years old and below 408 477 -14.47%
30 to 40 years old 2285 2197 4.01%
Above 40 years old 1149 985 16.65%
R&D investment of the Company
Items 2024 2023 Change
R&D investment (RMB) 5101483285.60 6555282352.50 -22.18%
Proportion of R&D investment in 1.56% 2.02% -0.46%
operating revenue
Capitalized amount of R&D 0.00 0.00 0.00%
investment (RMB)
Proportion of capitalized R&D 0.00% 0.00% 0.00%
investment in R&D investment
Reasons for and effects of significant changes in the composition of the Company’s R&D personnel
□ Applicable □ Not applicable
Reasons for significant changes in the proportion of total R&D investment amount in operating revenue compared
with the previous year
□ Applicable □ Not applicable
Reasons for the great changes of R&D investment capitalization rate and description of its rationality
□ Applicable □ Not applicable
5. Cash flow
Unit: RMB
Year-on-year
Items 2024 2023 increase
(decrease)
Subtotal of cash inflows from operating activities 384219250887.30 443339037616.94 -13.34%
Subtotal of cash outflows from operating activities 349610124282.42 415259816108.21 -15.81%
Net cash flows from operating activities 34609126604.88 28079221508.73 23.26%
Subtotal of cash inflows from investment activities 3993648376.29 3750853990.57 6.47%
Subtotal of cash outflows from investment activities 35249529611.29 36038087908.11 -2.19%
Net cash flows from investment activities -31255881235.00 -32287233917.54 3.19%
48 / 276 Full Text of 2024 Annual Report
Subtotal of cash inflows from financing activities 149236865336.65 159295018590.84 -6.31%
Subtotal of cash outflows from financing activities 150925150107.33 158092248128.26 -4.53%
Net cash flows from financing activities -1688284770.68 1202770462.58 -240.37%
Net increase in cash and cash equivalents 1456977237.93 -3972424706.25 136.68%
Description of main influencing factors of significant year-on-year changes in relevant data
□Applicable □ Not applicable
The net cash flow from the Company’s financing activities this year was RMB -1.688 billion with a decrease of
approximately RMB 2.891 billion compared to the previous year mainly due to dividend distributions to minority
shareholders by subsidiaries.Reasons for the significant difference between the net cash flow generated by the Company’s operating activities
and the annual net profit during the reporting period:
□Applicable □ Not applicable
The reasons for the significant difference between the cash flow generated by the Company’s operating activities
and the annual net profit during the reporting period are detailed in the supplementary information of the cash flow
statement in the Company’s annual audit report.Ⅴ. Non-core business analysis
□Applicable □ Not applicable
Unit: RMB
Items Amount Proportion to Whether it is total profit Cause description sustainable
Investment income 163033295.85 8.55% Mainly investment income from joint No ventures of the Company
Profit (loss) from fair 120298131.43 6.31% Mainly due to changes in the fair value of
value change foreign exchange derivative instruments No
Asset impairment -163827403.04 -8.60% Mainly the write off of inventory provision No for impairment
Non-operating revenue 10470949.91 0.55% Mainly due to compensation income No
Non-operating expenses 109027148.89 5.72% Mainly due to compensation No
Income from asset 17440176.91 0.92% Mainly due to the disposal of non-current
disposal assets No
Mainly due to VAT additional deduction
Other income 2871905081.83 150.70% policy for advanced manufacturing Yes
enterprises
Credit impairment loss -189106251.69 -9.92% Mainly due to the provision for bad debts of accounts receivable No
Ⅵ. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
At the end of 2024 At the beginning of 2024 Increase
49 / 276 Full Text of 2024 Annual Report
Items Amount Proportion in Amount Proportion in
(decrease) of
total assets total assets proportion
Cash and bank 14833384920.45 3.93% 13070255466.02 3.49% 0.44%
balances
Accounts 6821971706.36 1.81% 4737733703.66 1.26% 0.55%
receivable
Contract assets
Inventories 44566934616.59 11.80% 61733657342.07 16.47% -4.67%
Investment 10124128.60 0.00% 10395574.60 0.00% 0.00%
property
Long-term equity 9516636321.17 2.52% 9183711444.96 2.45% 0.07%
investments
Fixed assets 232497113015.70 61.53% 219699679397.52 58.60% 2.93%
Construction in 44036132096.28 11.65% 41820671070.59 11.15% 0.50%
progress
Right-of-use assets 176237821.55 0.05% 200102141.16 0.05% -0.00%
Short-term 44090969803.23 11.67% 44810936767.94 11.95% -0.28%
borrowings
Contract liabilities 5995580462.05 1.59% 4421732432.83 1.18% 0.41%
Long-term 119518340862.41 31.63% 125179583821.18 33.39% -1.76%
borrowings
Lease liabilities 171624458.34 0.05% 193002312.38 0.05% -0.00%
Non-current
liabilities due 38322495216.94 10.14% 30286684174.81 8.08% 2.06%
within one year
Overseas assets account for a relatively high proportion
□ Applicable □ Not applicable
2. Assets and liabilities measured at fair value
□Applicable □ Not applicable
Unit: RMB
Profit and Accumulat
loss from ed fair Impairme Purchase Sales
Opening changes in value nt accrued amount in amount in Items in the the the Other Closing balance fair value changes current current current changes balance for the recognized
period in equity period period period
Financial assets
1. Financial
assets held
for trading
(excluding
derivative
financial
assets)
2.3100874247576668
50 / 276 Full Text of 2024 Annual Report
Derivative 9.45 5.17
financial
assets
Total
financial 31008742 475766689.45 5.17
assets
Financial 62329874 13039119
liabilities 1.33
39.76
Whether there are any significant changes in the measurement attributes of the Company’s major assets during the
reporting period
□ Yes □ No
3. Restrictions on rights of assets as of the end of the reporting period
Items Carrying amount at the end of 2024 (RMB) Reasons for restrictions
Deposits for letters of credit bank
Cash and bank balances 1889552585.00 acceptance deposits for lease of silver
letters of guarantee and borrowings
Receivables financing 57470000.00 Pledged for bank acceptance
Fixed assets 254645778826.31 Mortgaged for borrowings and letters of credit
Construction in progress 29474930368.68 Mortgaged for borrowings and letters of credit
Intangible assets 6229413556.02 Mortgaged for borrowings and letters of credit
Total 292297145336.01
Ⅶ. Analysis of investment
1. Overall situation
□Applicable □ Not applicable
Investment amount in the reporting Investment amount in the same period
period (RMB) of last year (RMB) Variations
9516636321.179183711444.963.63%
2. Significant equity investments acquired during the reporting period
□ Applicable □ Not applicable
3. Major ongoing non-equity investments during the reporting period
□ Applicable □ Not applicable
4. Investment in financial assets
51 / 276 Full Text of 2024 Annual Report
(1) Securities investment
□ Applicable □ Not applicable
The Company had no securities investment during the reporting period.
(2) Investment in derivatives
□Applicable □ Not applicable
1) Derivatives investment for hedging purposes during the reporting period.
□ Applicable □ Not applicable
Unit：RMB 10000
Proportion
of
Accum Purchas investment Profit and ulated amount at
Initial loss from fair e Sales the end of
Derivatives investment investm Opening changes value amount amount Closing the period
type ent balance in fair changes in the in the balance in the net
amount value for recogni reporti reportin
the period zed in ng g period
assets at
period the end of equity the
reporting
period
Forward foreign exchange
contract 20863.07 26376.71 42018.03 0.96%
Paper futures contract 2193.43 2093.10 2093.10 0.05%
Total 23056.50 28469.81 44111.13 1.01%
Accounting policies and
specific principles of
accounting for hedging
operations during the
reporting period and No
explanation of whether
there is any significant
change compared with the
previous reporting period
Explanation of the actual
profit and loss situation in The Company’s actual gain or loss in the reporting period is RMB 215.8744 million.the reporting period
Explanation of hedging
effect Not applicable
Source of funds for
derivatives investment Owned fund
(I) Risk analysis of futures hedging operations
Explanation of risk 1.Risk of abnormal price fluctuations: In theory futures and spot market prices for all traded
analysis and control products shall converge during the delivery period. However in rare irrational market scenarios
measures for derivative futures and spot price discrepancies may persist through delivery period potentially impacting the
holding in the reporting Company’s hedging proposals and even causing losses.period (including but not 2.Liquidity risk: Futures trading if the amount invested is too large may result in liquidity risk
limited to market risk or even actual losses due to the forced liquidation because of the inability to replenish margin in a
liquidity risk credit risk timely manner. Futures trading may pose liquidity risk due to inactive trading which makes it
operational risk legal risk difficult to transact business.etc.) 3.Operational risk: Due to the specialized nature and complexity of futures trading there is a
potential for unexpected losses due to deficiencies in information systems or internal controls.
4.Credit risk: In the event of significant price fluctuations unfavorable to the counterparty the
52 / 276 Full Text of 2024 Annual Report
counterparty may violate the relevant provisions of the contract and terminate the contract resulting
in a loss to the Company.
5.Legal risk: Changes in the relevant legal system or violation of the relevant legal system by
the counterparty may cause the contract to be unable to be properly executed and result in losses to
the Company.(II) Risk control measures to be taken by the Company for the futures hedging business
1.Align futures hedging activities strictly with its operational needs to hedge the risk of price
fluctuation. The Company’s futures hedging activities are limited to the futures varieties related to
the raw materials or products required for the Company’s operations.
2.Strictly control the scale of hedging funds and rationalize the planning and use of margins.
The Company establishes principles for the design of hedging plans and provides for specific
approval authority for hedging plans. The Company’s hedging business is only for the purpose of
avoiding commodity price risk and does not involve speculative and arbitrage transactions. The
varieties of hedging business are limited to the raw materials and products required by the Company
of which the quantity of hedging cannot exceed the volume of actual spot transactions and the open
interest cannot exceed the spot quantity required for hedging purposes.
3.In accordance with the relevant provisions of the Rules Governing the Listing of Shares on
the Shenzhen Stock Exchange the Company established Commodity Futures Hedging Management
System to manage its futures business which can minimize operational risks caused by imperfect
systems and inappropriate work procedures.
4. Establish computer systems and related facilities that meet the requirements to ensure that
transactions are carried out properly. When a failure occurs take timely action to minimize losses.(III) Risk analysis of foreign exchange derivatives trading business
1. Market risk: In the event that the trend of the exchange rate or interest rate market deviates
significantly from the Company’s expectations the Company’s cost expenditure after locking in the
exchange rate or interest rate cost may exceed the cost expenditure without locking in which may
cause potential losses.
2. Internal control risk: The foreign exchange derivatives trading business is highly specialized
and complex which may result in risks due to inadequate internal control systems.
3. Risk of default by customers or suppliers: The occurrence of overdue accounts receivable from
customers the inability of goods to be collected within the estimated payback period or the delay in
payment to suppliers will affect the Company’s cash flow which may cause a failure to fully match
the actual cash flow incurred with the duration or amount of the foreign exchange derivatives business
that has been operated.Payback prediction risk: The Company usually makes payment and payback prediction based on
purchase orders customer orders and predicted orders. However in the process of actual execution
suppliers or customers may adjust their own orders and prediction resulting in inaccurate payback
prediction by the Company which leads to the risk of delayed settlement of foreign exchange
derivatives that have been operated.
4. Legal risk: Changes in the relevant laws or violation of the relevant legal system by the
counterparty may cause the contract to be unable to be properly executed and result in losses to the
Company.(IV) Risk control measures to be taken by the Company for foreign exchange derivatives
trading business
1. The Company shall has formulated the Foreign Exchange Derivatives Trading Management
System and specified no foreign exchange derivatives trading solely for speculative purposes. All
such trading must be based on normal production and operational needs supported by specific business
activities and aimed at hedging against and preventing exchange rate or interest risks. The system
makes clear provisions on the operating principles of the Company’s business approval authority
internal review process responsible departments and responsible persons information segregation
measures internal risk reporting system and risk handling procedures etc. The system complies with
the relevant requirements of the regulatory authorities meets the needs of actual operation and the
risk control measures formulated are effective and efficient.
2. The Treasury Department and the and Audit Department of the Company as the relevant
responsible departments have clear management positioning and responsibilities and responsibilities
are assigned to the specific person through hierarchical management fundamentally eliminating the
risk of single person or separate department operation and effectively controlling the risk under the
premise of improving the speed of response to the risk.
3. The Company conducts foreign exchange derivatives trading business with large commercial
banks having legal qualifications and closely follows the laws and regulations in the relevant fields to
avoid any legal risks that may arise.Changes in the market The Company values its hedging investments at a fair value. Forward foreign exchange is basically
53 / 276 Full Text of 2024 Annual Report
price or product fair value determined in accordance with the prices provided or obtained by banks and other pricing services
of invested derivatives etc. and the Company performs fair value measurement and recognition on a monthly basis; the
during the reporting trading price of futures is the fair price.period where the analysis
of the fair value of
derivatives should
disclose the specific
methodology used and the
setting of relevant
assumptions and
parameters
Involvement in lawsuits (if
any) None
Announcement disclosure
date of the board of
directors for derivatives April 24 2024
investment approval (if
any)
Announcement disclosure
date of the shareholders’
meeting for derivatives May 24 2024
investment approval (if
any)
2) Derivative investment for speculative purposes during the reporting period
□ Applicable □ Not applicable
The Company has no derivatives investment for speculative purposes during the reporting period.
5. Use of the raised funds
□ Applicable □ Not applicable
The Company did not use the raised funds during the reporting period.VIII. Sales of Major Assets and Equities
1. Sales of major assets
□ Applicable □ Not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equities
□ Applicable □ Not applicable
IX. Analysis of Main Holding and Joint-stock Companies
□Applicable □ Not applicable
Main subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit
Unit: RMB 10000
Company Compa Main business Registered Total Net assets Operating Operating name ny type capital assets revenue profit Net profit
ZPC Subsidia Production sales RMB5580 29430103 9491433. 26174788 391213.78 354248.01
54 / 276 Full Text of 2024 Annual Report
ry storage and 0000000 .72 77 .32
transportation of
petroleum
products etc.Production and
Zhongjin Subsidia sales of chemical Petrochem ry products and
RMB6000 2666916. 562108.98 1832892. - -
ical petroleum 000000
1527147884.74124943.88
products
Project
Yisheng
Investmen Subsidia
investment RMB
ry domestic trade 2018000
1767728.
83752822.45
3181974.
27-20857.50-15349.59
t import and export 000
of goods
Production and
Yisheng Subsidia sales of PTA and RMB2456 1598396. 3181974.Dahua ry polyester bottle 450000 95
583664.1027-28527.89-23005.95
chips
Yisheng
New Subsidia Production and RMB3000 1073486. 178321.63 3226652.64 45 -71059.70 -51046.53
Materials ry sales of PTA 000000
Joint-
Zhejiang stock Production and USD
Yisheng compan sales of PTA and 5144471
2074990.919212.851524658.513222719.3921458.79
y PIA 00
Joint- Production and
Hainan stock sales of PTA and RMB4580 1971626.
16687123.74
3213406.
32 15888.57 14380.19 Yisheng compan polyester bottle 000000
y chips
Shengyua Production and
n Subsidia sales of polyester chips and RMB2000 820673.49 212372.66 293894.32 -6171.09 -4795.83 Chemical ry
Fiber polyester
000000
filaments
Acquisition and disposal of subsidiaries during the reporting period
□Applicable □ Not applicable
Company name Acquisition and disposal methods Impact on overall production during the reporting period operation and performance
Taizhou ZPC Sales Co. Ltd. New establishment No significant impact
Zhejiang Rongyi Chemical Fiber Co.Ltd. New establishment No significant impact
Zhoushan ZPC Logistics Co. Ltd. New establishment No significant impact
Zhejiang Zhuosheng Industry & Trade
Co. Ltd. Industrial and commercial deregistration No significant impact
Description of major holding companies and joint-stock companies
(1) Zhejiang Petroleum & Chemical Co. Ltd.
Zhejiang Petroleum & Chemical Co. Ltd. serves as the implementation entity for the Company’s 40 million
tons/year refining and chemical integration project. It is mainly engaged in production sales storage and
55 / 276 Full Text of 2024 Annual Report
transportation of petroleum products etc. With Li Shuirong as its legal representative ZPC a holding subsidiary of
the Company owns a registered capital of RMB 55800 million. By the end of 2024 the company had total assets
of RMB 294301.04 million and net assets of RMB 94914.34 million; In 2024 the company achieved an operating
revenue of RMB 261747.88 million and a net profit of RMB 3542.48 million.
(2) Ningbo Zhongjin Petrochemical Co. Ltd.
Ningbo Zhongjin Petrochemical Co. Ltd. is mainly engaged in the storage of chemical products; wholesale
and retail of chemical products and petroleum products (except hazardous chemicals) etc. With Li Shuirong as its
legal representative Zhongjin Petrochemical a wholly-owned subsidiary of the Company owns a registered capital
of RMB 6000 million. By the end of 2024 the company had total assets of RMB 26669.16 million and net assets
of RMB 5621.09 million; In 2024 the company achieved an operating revenue of RMB 18328.92 million and a
net profit of RMB -1249.44 million.
(3) Dalian Yisheng Investment Co. Ltd.
Dalian Yisheng Investment Co. Ltd. is mainly engaged in industrial investment etc. With Li Shuirong as its
legal representative Yisheng Investment owns registered capital of RMB 2018 million. The Company holds 70%
of its equity. By the end of 2024 the company had total assets of RMB 17677.29 million and net assets of RMB
7528.22 million. In 2024 the company achieved an operating revenue of RMB 31819.74 million and a net profit
of RMB -153.50 million.
(4) Yisheng Dahua Petrochemical Co. Ltd.
Yisheng Dahua Petrochemical Co. Ltd. is mainly engaged in the production and sales of PTA etc. With Li
Shuirong as its legal representative Yisheng Dahua Petrochemical owns a registered capital of RMB 2456.45
million. By the end of 2024 the company had total assets of RMB 15983.97 million and net assets of RMB 5836.64
million. In 2024 the company achieved an operating revenue of RMB 31819.74 million and a net profit of RMB -
230.06 million.
(5) Zhejiang Yisheng New Materials Co. Ltd.
Zhejiang Yisheng New Materials Co. Ltd. is mainly engaged in the production and sales of PTA etc. The
legal representative is Xu Baoyue the registered capital is RMB 3 billion and Ningbo Zhongjin Petrochemical Co.Ltd. holds 51% of its equity. By the end of 2024 the company had total assets of RMB 10734.87 million and net
assets of RMB 1783.22 million; In 2024 the company achieved an operating revenue of RMB 32266.52 million
and a net profit of RMB -510.47 million.
(6) Zhejiang Yisheng Petrochemical Co. Ltd.
Zhejiang Yisheng Petrochemical Co. Ltd. is mainly engaged in PTA and PIA production and sales etc. With
Fang Xianshui as its legal representative Yisheng Petrochemical owns a registered capital of USD 514447100.By the end of 2024 the company had total assets of RMB 20749.91 million and net assets of RMB 9192.13 million;
In 2024 the company achieved an operating revenue of RMB 15246.58 million and a net profit of RMB 214.59
million.
(7) Hainan Yisheng Petrochemical Co. Ltd.
Hainan Yisheng Petrochemical Co. Ltd. is a joint-stock subsidiary of Yisheng Investment the Company’s
holding subsidiary. The Company is mainly engaged in the production and sales of PTA and polyester bottle chips
and import and export business etc. With Fang Xianshui as its legal representative Yisheng Petrochemical owns a
registered capital of RMB 4580 million. Yisheng Investment holds 50% of its equity. By the end of 2024 the
company had total assets of RMB 19716.26 million and net assets of RMB 6871.24 million; In 2024 the company
achieved an operating revenue of RMB 32134.06 million and a net profit of RMB 143.80 million.
(8) Zhejiang Shengyuan Chemical Fiber Co. Ltd.
Zhejiang Shengyuan Chemical Fiber Co. Ltd. is the implementing body of the Company’s multi-functional
56 / 276 Full Text of 2024 Annual Report
fibre technical transformation project. It is mainly engaged in the production and sales of polyester chips and
polyester filaments etc. With Li Shuirong as its legal representative Shengyuan Chemical Fiber a wholly-owned
subsidiary of the Company owns a registered capital of RMB 2 billion. By the end of 2024 the company had total
assets of RMB 8206.73 million and net assets of RMB 2123.73 billion; In 2024 the company achieved an operating
revenue of RMB 2938.94 million and a net profit of RMB -47.96 million.X. Structured Entities Controlled by the Company
□ Applicable □ Not applicable
XI. Prospect for the Company’s Future Development
The year of 2025 marks the conclusion of the 14th Five-Year Plan and the preparatory phase for the 15th Five-
Year Plan. In terms of macro-economic situation China’s economy will maintain its upward trajectory and long-
term positive trend; In terms of market dynamics the high-quality development of the petrochemical industry will
accelerate supported by the expanded implementation of domestic “dual new” policies structural optimization
within the sector and the timely implementation of growth stabilization measures leading to a gradual recovery
and improvement in downstream market demand. Looking ahead to 2025 during this critical period of industry
transformation and upgrading we shall adapt to the industry development trends such as product high-end cost
reduction and efficiency improvement and sustainable development maintain strategic focus and steadfastly
advance high-quality growth. Our operational priorities will concentrate on the following aspects:
(I) Business plan
1. Refined operations to achieve “high-quality” growth in both quantity and quality
Cost reduction and efficiency improvement have become vital strategies for petrochemical enterprises to
strengthen core competitiveness therefore we must focus on the priority of profitability and synergize operations
across the industrial chain. Leveraging the refining and chemical integration advantages we will emphasize
specialization intensification and refinement enhancements further exploring process innovation and optimization;
Through scientific planning and management optimization we will tap energy-saving potential improve
information management methods and achieve cost reduction and efficiency improvement from a holistic supply
chain perspective to better leverage our integrated upstream-midstream-downstream advantages and continuously
improve operational performance.
2. Optimized layout to accelerate project construction
China’s petrochemical industry has entered a new phase of modernization diversification and collaborative
development. Growing demand for fine chemicals and the rise of strategic emerging industries present fresh
opportunities for corporate growth. We will adopt forward-looking planning to fully accelerate projects like Jintang
New Materials and ZPC Polyolefins achieving efficient coordination while strengthening and complementing our
industrial chain to form differentiated competitive advantages; We will intensify R&D in core technologies focus
on overcoming difficulties by domestic technologies promote commercialization and application of technological
achievements and constantly ascend the value chain.
3. Deepened cooperation to build a “new pattern” of international development
With globally leading technologies and industrial chains our inevitable path forward is transitioning from
“going global” to “ascending globally” advancing toward deeper globalization to expand incremental growth and
secure long-term prospects. Aligning with development trends we will build our brand advantages proactively
enhance our international operational capabilities and actively consolidate and expand global market. Meanwhile
we must always pay attention to the international situation and effectively prevent and mitigate risks. Through
57 / 276 Full Text of 2024 Annual Report
expanded high-level international cooperation and innovative cooperation models we will achieve resource/market
complementarity and create new mutually beneficial outcomes.
4. Integrated innovation to execute a “combination strategy” for digital intelligence and green energy
As the “carbon peaking and carbon neutrality” initiative accelerates “digital intelligence greening andintegration” constitute the essential route for cultivating new quality productive forces and achieving high-qualitydevelopment. We will accelerate our sustainable development layout actively respond to China’s “carbon peakingand carbon neutrality” policy promote synergistic energy-saving and emission-reduction effects and contribute to
transformation and upgrading; proactively leverage new digital solutions and intelligent technologies to enhance
production efficiency; achieving deep integration between information technology and business processes to builddigital intelligent systems encompassing “production control equipment management supply chain managementsafety and environmental protection”. We will activate new growth drivers and cultivate fresh competitive
advantages to propel high-quality development to new heights.(II) Potential risks
1. Risk of raw material price fluctuations
As a member of the crude oil industrial chain the Company’s main cost of production is the cost of upstream
raw materials. Therefore the fluctuation of crude oil prices will result in the price fluctuation of products in the
industry chain. Our main products are aromatic hydrocarbons chemicals and oil products which are closely related
to the national economy and people’s livelihood. The industry development is highly correlated with the prosperity
of the national economy and macroeconomic changes will have a certain impact on our performance. Our
purchasing production and marketing team has rich experience in procurement production marketing hedging
and logisticsetc. With the help of the marketing department we will focus on market changes adhere to the
combination of strategic procurement and preferential procurement flexibly adjust our product mix and production
load according to market demand; maneuver to arrange long-term and short-term contracts and strengthen sales
management to reduce the adverse impact of raw material fluctuations.
2. Risk of foreign exchange rate fluctuations
In the future the market-oriented reform of the exchange rate will become one of the important factors affecting
investors’ asset allocation. If the USD further strengthens in the interest rate increase cycle it may lead to greater
pressure on the depreciation of the Chinese Yuan. As the Company pursues international growth the sharp
fluctuation of the currency exchange rate of foreign exchange settlement which is dominated by the USD will
jeopardize our daily operations. While controlling financial risks we will continue to optimize the financing
structure and the financing scale of USD funds control the cost within a reasonable range and then reduce the
adverse impact of the exchange rate.The Company has overseas purchases and sales. As the scale of the Company’s operations continues to expand
sales and purchases denominated in foreign currencies have further increased. In addition there are various complex
factors affecting the exchange rate trend in the foreign exchange market which are more uncertain. If the exchange
rate of RMB fluctuates significantly in the future it may affect the operating results of the Company. The Company
will take into account the characteristics of its own foreign-related business follow the principles of lawfulness
prudence safety and effectiveness and carry out foreign exchange derivatives trading business based on its specific
operating business to avoid and prevent exchange rate risks.
3. Risk of product overcapacity
With the expansion of domestic refining and chemical integration capacity and the promotion of the strategy
of “reducing oil and increasing chemicals” in recent years the basic chemical raw materials and general chemical
products in the downstream of refining and chemical industry are characterized by certain homogenization. With
the support of the Company’s complete and refined industrial chain platform the Company will still be at the left
end of the industry cost curve in the future thus occupying a favorable position in the market competition. On the
58 / 276 Full Text of 2024 Annual Report
other hand many products in the new materials project planned by the Company have less domestic production
capacity or even rely entirely on imports which will bring excess returns to the Company.
4. Risk of project capital expenditure
Petrochemical industry is a capital-intensive industry with large investment scale and long construction period.Continued large-scale capital investment will likely increase the level of asset-liability ratio and trigger cash flow
risks. Besides in the context of overcapacity in the industry and sluggish downstream demand the return on invested
capital may also be less than expected. After the second phase of ZPC was put into production although the
Company planned several new materials projects intensively it has strictly controlled the pace of investment and
construction adjusted the project content in strict accordance with the market situation maintained a reasonable
asset-liability ratio and actively negotiated cooperation with foreign petrochemical giants such as Saudi Aramco to
create a more competitive refining and chemical integration platform.Ⅻ. Reception of research communication interview and other activities during the
reporting period
□Applicable □ Not applicable
Date Reception Ways of Object type Reception Main contents discussed Basic information place reception object and materials provided index of research
Visit Visit
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for details 03%2017:55 for details
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59 / 276 Full Text of 2024 Annual Report
XIII. Formulation and Implementation of Market Value Management System and Valuation
Promotion Plan
Whether the company has formulated a market value management system.□Yes □No
Whether the company has disclosed the valuation promotion plan.□ Yes □ No
Market value management is a critical component of the Company’s long-term development which can
enhance the Company’s market competitiveness and investor confidence through scientific and effective
management practices thereby achieving sustained growth in corporate value. In order to strengthen market value
management and improve investor returns the Company has formulated the Market Value Management System in
accordance with the Securities Law of the People’s Republic of China the Guideline No. 10 for Supervision of
Listed Companies - Market Value Management the Rules Governing the Listing of Shares on Shenzhen Stock
Exchange and other applicable laws regulations and regulatory documents and in combination with its own actual
business development. The Proposal On the Formulation of the
reviewed and approved at the 22nd Meeting of the Sixth Board of Directors. In the future the Company will strictly
implement such system to standardize relevant practices and continuously enhance investment value and
shareholder returns thus laying a solid foundation for long-term high-quality development.XIV. Implementation of the action plan of “double improvement of quality and return”
Whether the Company has disclosed the action plan announcement of “double improvement of quality and return”.□Yes □No
In order to implement the guiding ideology of “activating the capital market and boosting investors’ confidence”put forward at the meeting of the Political Bureau of the CPC Central Committee on July 24 2023 and “improvingthe quality and investment value of listed companies taking more powerful and effective measures focusing onstabilizing the market and confidence” put forward at the executive meeting of the State Council on January 22
2024 and earnestly protect the interests of all investors the Company has formulated the action plan of “doubleimprovement of quality and return” based on its confidence in the future development prospects of the Company
and its recognition of the stock value and disclosed it on March 2 2024. Details are as follows:
1. Insist on serving the country through industry and lead the development of the industry
Rongsheng Petrochemical is one of the globally leading petrochemical enterprises ranking 6th in the world’s
top-25 most valuable brands report by Brand Finance the UK’s leading brand evaluator 6th on the list in American
Chemistry Weekly’s “Chemical Week’s Billion-Dollar Club”. in global chemical industry in 2023 and 8th in theICIS top 100 global chemical enterprises in 2024. The Company is firmly putting into practice the “vertical andhorizontal strategy”. It has established seven production bases in Bohai Economic Rim Yangtze River Delta
Economic Circle and Hainan Belt and Road Economic Circle forming five industrial chains of polyester
engineering plastics new energy high-end polyolefin and special rubber. It is one of the important producers of
polyester new energy materials engineering plastics and high value-added polyolefin in Asia with the largest
production capacity of chemicals such as PX and PTA in the world. Since listing the Company’s business has
developed rapidly and its operating revenue has increased from RMB 15795678900 in 2010 to RMB
32647516.26 in 2024 with a compound growth rate of 24.15%.
On the basis of the existing complete industrial chain the Company actively arranges products related to new
energy and new materials and the proportion of related products continues to increase. At the same time the
60 / 276 Full Text of 2024 Annual Report
Company actively carried out the global layout. In 2023 the Company introduced Saudi Aramco as a strategic
investor. At present Saudi Aramco holds about 10% of the Company’s stake through its fully-owned affiliate. At
the beginning of 2024 the Company signed a Memorandum of Understanding with Saudi Aramco and the two
sides are discussing further cooperation matters to promote the realization of their strategic goals.
2. Attach importance to R&D investment and drive growth with innovation
The Company keeps up with the forefront of international science and technology and constantly launches
new technologies and products in clean energy high-end materials and green development. The Company upholds
a technological research and development pattern driven by both independent innovation and cooperation. It has
established many first-class research and development platforms including a high-tech research and development
center a workstation for academicians and experts an enterprise technology center and a post-doctoral science and
research workstation. Moreover it engages in active technology exchanges and discussions and promotes industry-
university-research collaboration to pool resources from universities the community and the Company. With all
sectors of society it jointly promotes its research capability and technological advancement and together create an
innovative development system that is open healthy and cooperative where everyone can benefit.
3. Attach importance to shareholders’ returns and share development achievements
While paying attention to its own development the Company also attaches great importance to shareholders’
return. In order to improve and enhance the Company’s shareholder return mechanism and increase the transparency
and operability of profit distribution policies the Company has formulated the Shareholders’ Return Plan for the
Next Three Years since its listing according to the Company Law of People’s Republic of China the Supervision
Guide for Listed Companies No.3-Cash Dividends of Listed Companies and other laws regulations and the Articles
of Association and has continuously updated them. Up to now a total of 14 cash dividends have been paid with a
total cash dividend of nearly RMB 8.443 billion. In the future the Company will continue to coordinate the dynamic
balance of corporate development performance growth and shareholder return according to its development stage
and realize a “long-term stable and sustainable” shareholder value return mechanism.
4. Carry out repurchase by increasing holdings to boost market confidence
Based on the confidence in the Company’s future development prospects and the recognition of its long-term
value the Company and its controlling shareholder actively carry out share repurchase and increase plans in order
to protect the interests of investors especially small and medium-sized investors enhance investors’ confidence
promote the reasonable return of the Company’s stock price to its long-term intrinsic value and promote the
Company’s stable and sustainable development.Since the Company repurchased shares for the first time on March 29 2022 it has implemented three-phase
share repurchase schemes. As of March 31 2024 the Company have repurchased 553232858 shares in the three
repurchase phases accounting for 5.4637% of the Company’s total share capital with a total turnover of RMB
6987904924.02 (excluding transaction costs). The details are as follows.
Number of shares Amount to be
Repurchase Repurchase repurchased repurchased Repurchased period (shares) (RMB 100 amount (RMB) million)
Phase I 3.29. 2022-8.2. 2022 136082746 10-20 1998203937.31
Phase II 8.18. 2022-7.27. 2023 147862706 10-20 1989986431.34
Phase III 8.28. 2023-8.19. 2024 269287406 15-30 2999714555.37
Total 553232858 - 6987904924.02
Rongsheng Holdings the controlling shareholder implemented the increase plan twice from January 22 2024
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to February 20 2025 and has completed the two increases. It has increased its shareholding in the Company for an
aggregate of 172422254 shares accounting for 1.70% of the total share capital of the Company at present and the
total increase amount is approximately RMB 1692.9317 million. The details are as follows:
Share Share increase period Number of shares Amount to be increased Amount increased increase items increased (shares) (RMB 100 million) (RMB 10000)
Phase I 1.22. 2024-7.18. 2024 115530037 10-20 118805.82
Phase II 8.21.2024-2.20.2025 56892217 5-10 50487.35
Total 172422254 - 169293.17
On April 8 2025 Rongsheng Holdings once again commenced the implementation of a plan to increase its
shareholding in an amount of not less than RMB 1 billion and not more than RMB 2 billion which is currently
under implementation.
5. Standardize corporate governance and deliver corporate value
The Company strictly abides by the requirements of relevant laws and regulations constantly improves the
corporate governance structure establishes and enhances the internal control system regulates the company’s
operation strives to achieve full coverage of the system and promotes a more mature construction of the internalcontrol system. The Company has established a corporate governance structure of “three meetings and onemanagement” namely the General Meeting of Shareholders Board of Directors Board of Supervisors and Senior
Management which has independent business and operational autonomy and operates independently in business
assets personnel institutions and finance.The Company strictly abides by the principle of “truthfulness accuracy completeness timeliness and fairness”
constantly improves the effectiveness and transparency of information disclosure and continuously presents
investors with information on the Company’s operations at multiple levels from multiple angles and in all directions.At the same time the Company continuously expands the breadth and depth of investor communication and
improves the open fair transparent and multi-dimensional investor communication channels so that investors can
understand the Company’s core values more clearly and comprehensively and enhance their confidence in the
Company.In the future the Company will continue to focus on its main business adhere to the investor-oriented principle
continue to practice the “double improvement of quality and return” policy realize the sustainable and healthy
development of the Company and strive to make positive contributions to stabilizing the market and confidence
through standardized corporate governance and positive investor returns.
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Section IV Corporate Governance
I. Basic Information of Our Corporate Governance
During the reporting period the Company followed the Company Law of the People’s Republic of China the
Securities Law of the People’s Republic of China the Guidelines on Corporate Governance for Listed Companies
the Rules Governing the Listing of Shares on Shenzhen Stock Exchange the Guidelines of Shenzhen Stock
Exchange on Standardized Operation of Listed Companies and other applicable laws and regulations issued by
China Securities Regulatory Commission. We constantly improved internal corporate governance established a
sound internal control system and regulated operational processes in line with the above-mentioned legal
requirements. The status quo of our corporate governance met the requirements of normative documents concerning
listed companies governance.
1. The shareholders and the General Meeting of Shareholders
During the reporting period the Company standardized the convening and voting procedures of the General
Meeting of Shareholders in strict accordance with the Company Law of the People’s Republic of China the Rules
for the Shareholders’ Meetings of Listed Companies the Articles of Association the Rules of Procedure of the
General Meeting of Shareholders and other applicable regulations and requirements so as to ensure that all
shareholders especially small and medium-sized shareholders enjoy equal status and fully exercise their rights.Additionally according to the Articles of Association and other applicable laws and regulations the matters to be
voted at the General Meeting of Shareholders would be first reviewed by the corresponding authority and then
submitted to the General Meeting for deliberation. There was no approval beyond authority or implementation
before deliberation. During the reporting period the Company held two General Meeting of Shareholders which
was convened by the Board of Directors and invited lawyers to guarantee the legitimacy and normalization of the
General Meeting of Shareholders.
2. The relationship between the controlling shareholders and the listed company
The Company and its controlling shareholders are completely separated when it comes to business personnel
assets institutions and finances. The Company has full capability of independent operations. The controlling
shareholders strictly regulate their own behavior fulfill corresponding obligations and do not interfere directly or
indirectly in the Company’s decision-making and business activities without the presence of the Board of Directors.The company has independent business and operational autonomy so it is independent of the controlling
shareholders in terms of business assets personnel organization and finances. The Board of Directors Board of
Supervisors and internal organizations can operate independently. There is no horizontal competition between the
Company and the controlling shareholders the Company does not provide undisclosed information to the
controlling shareholders and the controlling shareholders do not appropriate the Company’s funds. Moreover the
Company provides no guarantee for its controlling shareholders.
3. The Board of Directors and its members
The Company in strict accordance with the provisions and requirements stipulated in the Company Law of
the People’s Republic of China and the Articles of Association etc. during the reporting period held six board
meetings of directors and the convening and voting procedures of the Board Meetings satisfied the requirements of
the Rules Governing the Listing of Shares on Shenzhen Stock Exchange the Articles of Association and the Rules
of Procedure of the Board of Directors. All the directors can work diligently and dutifully in accordance with the
Rules of Procedure of the Board of Directors attend the Board of Directors Meetings participate in the training
sessions and learn relevant laws and regulations. Independent directors independently perform their duties
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safeguard the overall interests of the Company protect the legitimate rights and interests of minority shareholders
from harm and discussed important and major matters through special meetings of independent directors. The
special committees under the Board of Directors perform their respective duties and give full play to their
professional functions greatly improving the efficiency of the Board.
4. The Board of Supervisors and its members
The Company in strict accordance with the provisions and requirements stipulated in the Company Law of
the People’s Republic of China and the Articles of Association etc. during the reporting period held six board
meetings of supervisors and the convening and voting procedures of the Board of Supervisors Meetings complied
with the Rules Governing the Listing of Shares on Shenzhen Stock Exchange the Articles of Association and the
Rules of Procedure of the Board of Supervisors. The Company’s supervisors can earnestly perform their duties and
assume responsibility for the shareholders in accordance with the relevant requirements. They also supervise the
Company’s finances related-party transactions internal controls and the performance of directors and senior
executives provide their opinions and safeguard the legitimate rights and interests of the Company and its
shareholders.
5. Performance evaluation standards and incentive mechanisms
The Company kept improving a set of fair and transparent performance evaluation standards and incentive
mechanisms. The appointment process of senior executives is open and transparent and complies with the applicable
laws and regulations.
6. Stakeholders
The Company respects and protects the legitimate rights and interests of its shareholders customers employees
suppliers partners and other stakeholders strengthens communication and cooperation with them and strives to
balance their interests while maximizing the profits so as to sustain the healthy development of the Company.
7. Information disclosure management
During the reporting period the Company strengthened information disclosure management and fulfilled the
obligation of information disclosure in accordance with the spirit of documents issued by Shenzhen Stock Exchange
and other applicable laws and regulations. The Company disclosed its information on the Securities Times China
Securities Journal and CNINFO website (http://www.cninfo.com.cn) to enable investors to access our information
in a fair manner. The Company also established smooth communication channels such as the Investor Hotline and
Investor Relations Interactive Platform of Shenzhen Stock Exchange to better exchange opinions.During the reporting period the reality of corporate governance met the requirements of normative documents
concerning listed company governance issued by the China Securities Regulatory Commission.Whether there are any material differences between the actual state of corporate governance and the laws
administrative regulations provisions on company governance issued by the China Securities Regulatory
Commission.□ Yes □ No
There are no material differences between the actual state of corporate governance and the laws administrative
regulations provisions on company governance issued by the China Securities Regulatory Commission.II. Corporate Independence from the Controlling Shareholders and Actual Controller in
Terms of Assets Personnel Finances Organization and Business
The Company is completely separated from its controlling shareholders and other subsidiaries or affiliates in
terms of business personnel assets organization and finances. It has the full capability of conducting business and
maintaining operations independently.
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1. Business independence
The Company has independent business operation systems such as an independent procurement system
production system technology R&D system and marketing system and can operate independently while directly
satisfying market demands. The Company has no competitive relationship with its major shareholders and other
related parties under their control nor does it rely on any of them in business operations.
2. Personnel independence
The Company manages an independent staff. The Company is separated from its shareholders and other
subsidiaries or affiliates under their control when it comes to salary payment and welfare expenditures and has
established an independent and complete human resources management system. The Company’s Chairman General
Manager Deputy General Manager Chief Financial Officer Secretary of the Board of Directors and other senior
executives are appointed in accordance with the applicable laws regulations normative documents and the Articles
of Association. They work full-time in the Company and receive remuneration and so do the financial personnel.
3. Assets independence
The ownership of major operating assets such as land buildings production equipment and office facilities of
the Company and its holding subsidiaries is clear and complete. The Company does not provide guarantee for
shareholders and companies controlled by them for the sake of assets benefits or reputation. The Company has
complete control over all assets and the funds are not misappropriated meaning the interests of the Company and
its shareholders are not compromised.
4. Organizational independence
The Company has established effective bodies such as the General Meeting of Shareholders the Board of
Directors and the Board of Supervisors and developed corresponding rules of procedure. All institutions make
independent decisions within their respective authority in accordance with the Company Law of the People’s
Republic of China and the Articles of Association. According to the real needs of business development the
Company established an independent and complete organizational framework in line with the actual situation and
conducted business activities independently. The Company is completely separated from the shareholder
organizations and their related parties in terms of business operations and there is no mixed operation.
5. Financial independence
The Company has set up a complete and independent financial department assigned independent financial
personnel and established an independent accounting system. The financial department can make financial
decisions independently and the Company has a standardized financial accounting system and a financial
management system designed for subsidiaries. The Company opens an independent bank account. As an
independent taxpayer the Company declares taxes independently and fulfills the obligation of tax payment.III. Horizontal Competition
□ Applicable □ Not applicable
IV. The Convening of the Annual General Meeting and Interim Shareholders’ Meeting During
the Reporting Period
1. General meeting of shareholders during the reporting period
Investor
Session Type Attendan Convening Disclosure
ce Ratio date Date
Meeting Resolution
65 / 276 Full Text of 2024 Annual Report
For details please refer to CNINFO
The First Extraordinar (http://www.cninfo.com.cn)
Extraordinary General y General 64.32% January 15 January 16 Announcement on Resolutions of the First
Meeting in 2024 Meeting 2024 2024 Extraordinary General Meeting of Shareholders in 2023 (Announcement
No.: 2024-009)
For details please refer to CNINFO
General Meeting of Annual May 24 (http://www.cninfo.com.cn)
Shareholders 2023 General 77.26% 2024 May 25 2024 Announcement on Resolutions of Annual Meeting General Meeting of Shareholders in 2023
(Announcement No.: 2024-037)
2. Preferred shareholders with voting rights recovered requested to convene an extraordinary general
meeting of shareholders
□ Applicable □ Not applicable
V. Basic Information of the Board Members Supervisors and Senior Executives
1. Profile
End Number of Start Date of Shares Held Number of Name Gender Age Title Status Tenure Date of Tenure at the
Shares Held
Beginning at the End
Li Shuirong Male 69 Chairman Incumbency April 8 2010 643275000 643275000
Alharbi Mitib
Awadh M Male 48 Director Incumbency
November 13
2023
Xiang Director and
Jiongjiong Male 42 General Incumbency May 26 2015 Manager
Li Yongqing Male 61 Director Incumbency April 8 2010 96525000 96525000
Li Cai’e Female 62 Director Incumbency April 8 2010
Yu Fengdi Female 57 Director Incumbency April 8 2010
Yan Jianmiao Male 60 Director Incumbency May 10 2019
Shao Yiping Female 62 Director Incumbency May 20 2021
Zheng
Xiaodong Male 47 Director Incumbency May 10 2019
Sun Guoming Male 44 Supervisor Incumbency May 10 2019
Li Guoqing Male 55 Supervisor Incumbency April 8 2010 96525000 96525000
Xu Yongming Male 54 Supervisor Incumbency April 8 2010
Deputy
Zhou Xianhe Male 50 General Incumbency October 25
Manager 2022
Quan Secretary of
Weiying Female 47 Incumbency April 29 2010 the Board of
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Directors
Chief
Wang Yafang Female 46 Financial Incumbency May 10 2019
Officer
Total -- -- -- -- -- -- 836325000 836325000
Whether there was any resignation of directors and supervisors and dismissal of officers in the reporting period
□ Yes □ No
Personnel Change of Directors Supervisors and Senior Executives
□ Applicable □ Not applicable
2. Holding of Post
The background main work experience and current main duties of directors supervisors and officers in the
Company
1. Main work experience of current directors:
Mr. Li Shuirong: Senior Economist university degree Chinese nationality; He has previously served as
Chairman and General Manager of Rongsheng Chemical Fiber Group Co. Ltd. and Chairman and President of
Zhejiang Rongsheng Holding Group Co. Ltd.; He also holds positions as President of China Township Enterprises
Association Invited Vice President of China National Textile and Apparel Council Vice President of China
Chemical Fibers Association and Senior Consultant of Zhejiang Province Zheshang Economic Development Center;
He is currently the Chairman of Rongsheng Petrochemical Co. Ltd. and the Chairman of Zhejiang Rongsheng
Holding Group Co. Ltd.Mr. Alharbi Mitib Awadh M: Saudi Arabian nationality. Graduated from King Fahd University of Petroleum
and Minerals (Saudi Arabia) he currently serves as Vice President of Fuel Business Management at Saudi Aramco
in Dhahran Saudi Arabia. He used to serve as President of Aramco Asia. Additionally he also used to hold various
leadership positions including: Representative Director of Aramco Asia Korea Director of Domestic Joint Venture
Management & Coordination at Saudi Aramco Headquarters and leadership positions at Motiva’s Port Arthur
Refinery (Motiva Enterprises) and Motiva U.S. headquarters in Houston Texas. Furthermore he began his career
at Ras Tanura Refinery in Saudi Arabia and completed nearly two years of professional studies at UOP (USA).Mr. Xiang Jiongjiong: Senior Economist; currently Director and General Manager of Rongsheng
Petrochemical Co. Ltd. Vice Chairman of Zhejiang Rongsheng Holding Group Co. Ltd. and Director of Zhejiang
Petroleum & Chemical Co. Ltd.; He also serves as the Vice President of the General Association of Zhejiang
Entrepreneurs; and he is listed in ICIS “Top 40 Most Influential Chemical Leaders Worldwide 2025” and Forbes
“China’s Best CEOs 2021”.Mr. Li Yongqing: Chinese nationality; He formerly served as Deputy Manager and General Manager Assistant
of the Supply Engineering Department of Rongsheng Chemical Fiber Group Co. Ltd; He is currently the Vice
Chairman of Zhejiang Rongsheng Holding Group Co. Ltd. and a director of Rongsheng Petrochemical Co. Ltd.Ms. Li Cai’e: Senior Economist Bachelor’s degree Chinese nationality; She was awarded many honorary
titles such as model worker of Xiaoshan District in 2008 and advanced accountant of Xiaoshan District in Hangzhou;
She once served as Deputy General Manager of Rongsheng Chemical Fiber Group Co. Ltd. and Chief Financial
Officer of Rongsheng Petrochemical Co. Ltd.; She is currently the Vice President of Zhejiang Rongsheng Holding
Group Co. Ltd. a director of Rongsheng Petrochemical Co. Ltd. a director of Zhejiang Petroleum & Chemical
Co. Ltd. and a director of Ningbo United Group Co. Ltd.Ms. Yu Fengdi: College degree; She was awarded the title of Model Worker of Hangzhou City; She has served
as a technician of the Biotechnology Department of Shaoxing County No. 1 Polyester Factory the head of the
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Biotechnology Department of Shaoxing No. 1 Chemical Fiber Factory the manager and the assistant to the general
manager of the False Twisting Department of Rongsheng Chemical Fiber Group Co. Ltd.; She is currently the Vice
President of Zhejiang Rongsheng Holding Group Co. Ltd. and a director of Rongsheng Petrochemical Co. Ltd.Mr. Yan Jianmiao: Chinese nationality without permanent residency abroad Ph.D. in Economics. He has
served as the former deputy director of the Department of International Trade of the School of Finance and
Economics Hangzhou University and the director of the Department of International Economics of the School of
Economics Zhejiang University. He is currently a professor at the School of Economics of Zhejiang University and
the executive director of Zhejiang International Economy & Trade Institute. He is currently an independent director
of Rongsheng Petrochemical Co. Ltd. Zhejiang Garden Biotechnology Co. Ltd. and Zhejiang Jinggong
Technology Co. Ltd.Ms. Shao Yiping: Master degree professor of accounting master’s supervisor main research interests:
Accounting theory and accounting standards accounting professional judgment and earnings management asset
impairment accounting etc. focusing on many fields such as corporate litigation risk and accounting robustness;
She served as Secretary of Party General Branch and Vice President of the School of Accounting Zhejiang
University of Finance and Economics Director of the Personnel Department of Zhejiang University of Finance and
Economics Member of the CPC Committee of Zhejiang University of Finance and Economics Secretary of the
CPC Committee of Dongfang College Member of the CPC Committee and Chairman of the Labor Union of
Zhejiang University of Finance and Economics Member of Zhejiang Accounting System Advisory Expert
Committee etc. I am currently a professor of accounting at the Zhejiang University of Finance and Economics an
executive director of the Hangzhou Institute of Certified Public Accountants and an independent director of
Rongsheng Petrochemical Co. Ltd. UE Furniture Co. Ltd. and Zhongtian Service Co. Ltd.Mr. Zheng Xiaodong: Chinese nationality without permanent residency abroad Master of Maritime Law. He
is currently the Managing Partner of BEIJING JINCHENGTONGDA & NEAL LAW FIRM an arbitrator of
Shanghai International Arbitration Center and an independent director of Rongsheng Petrochemical Co. Ltd.Gigadevice Semiconductor Inc. and Beijing Foyou Pharma Co. Ltd. He served as a member of the Listing
Committee of the Shanghai Stock Exchange deputy head of the Enterprise Compliance Special Working Group of
All China Lawyers Association (including enterprise compliance and ESG) and deputy director of the Professional
Committee of Securities Law of Beijing Lawyers Association. Zheng Xiaodong has extensive experience in
corporate compliance ESG investment and financing and corporate listing and has presided over the ESG
reporting of JT&N.
2. Main work experience of current supervisors:
Mr. Sun Guoming: Party Member of the Communist Party of China Bachelor Degree Certified Anti-Fraud
Professional Enterprise Human Resource Manager. He ever served as an inspector assistant manager and deputy
manager of the Inspection Department of Zhejiang Rongsheng Holding Group Co. Ltd.; Manager of the Warehouse
Management Department and General Management Department of Ningbo Zhongjin Petrochemical Co. Ltd. He is
currently the Deputy Secretary of the Discipline Inspection Commission Deputy Director of the Inspection
Department of Zhejiang Rongsheng Holding Group Co. Ltd. and the Supervisor of Rongsheng Petrochemical Co.Ltd.Mr. Li Guoqing: He used to be assistant manager of the Sales Department of Rongsheng Chemical Fiber Group
Co. Ltd.; He is currently the Assistant to Vice President of Zhejiang Rongsheng Holding Group Co. Ltd. and the
Supervisor of Rongsheng Petrochemical Co. Ltd.Mr. Xu Yongming: Bachelor’s degree senior economist successively served as manager of the spinning
department and assistant to general manager of Rongsheng Chemical Fiber Group Co. Ltd.; He is currently the
supervisor of Rongsheng Petrochemical Co. Ltd. and the general manager of Zhejiang Yongsheng Technology Co.Ltd.
68 / 276 Full Text of 2024 Annual Report
3. Main work experience of current senior management personnel:
Mr. Xiang Jiongjiong: Senior Economist; currently Director and General Manager of Rongsheng
Petrochemical Co. Ltd. Vice Chairman of Zhejiang Rongsheng Holding Group Co. Ltd. and Director of Zhejiang
Petroleum & Chemical Co. Ltd.; He also serves as the Vice President of the General Association of Zhejiang
Entrepreneurs; and he is listed in ICIS “Top 40 Most Influential Chemical Leaders Worldwide 2025” and Forbes
“China’s Best CEOs 2021”.Mr. Zhou Xianhe: male professor-level senior engineer bachelor’s degree Chinese nationality; He
successively served as head of the Finished Product Inspection Department of Zhejiang Rongsheng Chemical Fiber
Co. Ltd. sales manager of Zhejiang Rongsheng Holdings Group Co. Ltd. sales manager of Hangzhou Rongsheng
Chemical Fiber Sales Co. Ltd. deputy general manager of Zhejiang Shengyuan Chemical Fiber Co. Ltd. and part-
time professor of Zhejiang Sci-Tech University; He is also a member of the National Chemical Fiber Standardization
Technical Committee; He is currently the General Manager of Zhejiang Shengyuan Chemical Fiber Co. Ltd.Ms. Quan Weiying: Bachelor’s degree once worked in Investment Department and Finance Department of
Rongsheng Petrochemical Co. Ltd. and won the titles of “Excellent Secretary of the Board of Directors” and “TopSecretary of the Board of Directors”; She is currently secretary of the Board of Directors of Rongsheng
Petrochemical Co. Ltd.Ms. Wang Yafang: Bachelor’s degree senior accountant certified public accountant; She used to be deputy
manager manager and deputy financial director of the Financial Management Department of Zhejiang Rongsheng
Holding Group Co. Ltd.; She is currently the Chief Financial Officer of Rongsheng Petrochemical Co. Ltd.Holding of Post at Shareholder Organization
□Applicable □ Not applicable
Whether receiving
Shareholder Start Date of End Date remuneration and Name Organization Title Tenure of Tenure allowance in shareholder
organization
Li Shuirong Rongsheng Holding Chairman June 20 2007 No
Li Yongqing Rongsheng Holding Director June 20 2007 Yes
Sun Guoming Rongsheng Holding Supervisor May 10 2019 Yes
Li Guoqing Rongsheng Holding Director June 20 2007 Yes
Yu Fengdi Rongsheng Holding Vice President May 9 2017 Yes
Li Cai’e Rongsheng Holding Vice President May 11 2019 Yes
Additional
Information None
Office holding in other companies
□Applicable □ Not applicable
69 / 276 Full Text of 2024 Annual Report
Whether receivin
Name Name of other units Positions held in other units Start Date of Tenure End Date of Tenure g remuneration and allowance in ot
her organizations
Li Shuirong Ningbo United Group Co. Ltd. Chairman Director May 18 2010 No
Li Shuirong Rongsheng (Shanxi) Carbon-based New Material Co. Ltd. Chairman General Manager August 1 2021 No
Li Shuirong Rongsheng (Shanxi) Coal Industry Co. Ltd. Chairman General Manager August 1 2021 No
Li Shuirong Zhejiang Dongjiang Green Petrochemical Technology Innovation Center Co. Ltd. Vice Chairman April 1 2023 No
Li Shuirong Shanghai Huanqiu Engineering Co. Ltd. Director January 1 2021 No
Li Shuirong Zhejiang Petroleum & Chemical Co. Ltd. Chairman June 18 2015 No
Li Shuirong Ningbo Zhongjin Petrochemical Co. Ltd. Chairman April 21 2009 No
Li Shuirong Dalian Yisheng Investment Co. Ltd. Chairman December 19 2005 No
Li Shuirong Yisheng Dahua Petrochemical Co. Ltd. Chairman December 19 2005 No
Li Shuirong Zhejiang Shengyuan Chemical Fiber Co. Ltd. Chairman June 15 2010 No
Li Shuirong Zhejiang Derong Chemical Co. Ltd. Director October 1 2018 No
Li Shuirong Rongsheng New Materials (Taizhou) Co. Ltd. Chairman Manager May 1 2022 No
Li Shuirong Zhejiang Shengcheng New Materials Co. Ltd Executive director June 1 2023 No
Li Shuirong .Zhejiang Rongshen New Materials Co. Ltd. Executive director June 1 2023 No
Li Shuirong Zhejiang Huiyu New Materials Co. Ltd. Executive director June 1 2023 No
Li Shuirong Ningbo Hengyi Trading Co. Ltd. Director No
Li Shuirong Zhejiang Yisheng Petrochemical Co. Ltd. Director December 12 2002 No
Li Shuirong Ningbo Niluoshan New Energy Co. Ltd. Executive Director General Manager July 1 2018 No
Li Shuirong Zhejiang Dingsheng Petrochemical Engineering Co. Ltd. Director October 1 2018 No
Li Shuirong Zhejiang Xiaoshan Rural Commercial Bank Co. Ltd. Director August 1 2004 No
Li Shuirong Hangzhou Binjiang Shengyuan Real Estate Development Co. Ltd Supervisor No
Li Shuirong Hangzhou Kaiyuan Century Real Estate Co. Ltd. Director No
Li Shuirong Hangzhou Yuanshenghui Enterprise Management Co. Ltd. Director November 1 2023 No
70 / 276 Full Text of 2024 Annual Report
Li Shuirong Ningbo Qingzhi Chemical Terminal Co. Ltd. Chairman No
Alharbi Mitib A
wadh M Saudi Arabian Oil Company
VP of Fuels Business Managem
ent March 10 2024 Yes
Alharbi Mitib A
wadh M Aramco Far East (Beijing) Business Services Co. Ltd President July 1 2023 March 9 2024 Yes
Alharbi Mitib A
wadh M Aramco Asia Korea Limited Representative director September 29 2020 June 30 2023 Yes
Xiang Jiongjion
g Rongsheng Energy Co. Ltd. Executive director April 1 2021 No
Xiang Jiongjion
g Rongsheng Energy (Zhoushan) Co. Ltd. Executive Director Manager November 1 2023 No
Xiang Jiongjion Rongsheng Energy Science and Technology (Inner Mongoli
g a) Co. Ltd. Chairman January 1 2024 No
Xiang Jiongjion
g Rongsheng Coal Co. Ltd. Executive director June 21 2018 No
Xiang Jiongjion
g Dongzhan Shipping Co. Ltd. Director July 1 2018 No
Xiang Jiongjion
g Zhejiang Petroleum & Chemical Co. Ltd. Director June 18 2015 No
Xiang Jiongjion
g Rongsheng New Materials (Zhoushan) Co. Ltd. Chairman January 1 2022 No
Xiang Jiongjion
g Rongsheng Chemical (Shanghai) Co. Ltd. Executive director May 1 2021 No
Xiang Jiongjion
g Rongsheng New Materials (Taizhou) Co. Ltd. Director December 01 2023 No
Xiang Jiongjion
g Rongxiang Chemical Fiber Co. Ltd. Chairman No
Xiang Jiongjion
g Zhejiang Yongsheng Technology Co. Ltd. Director No
Xiang Jiongjion
g Rongsheng International Trading Co. Ltd. Executive director February 1 2016 No
Xiang Jiongjion
g Hainan Rongsheng International Trade Co. Ltd. Executive director August 1 2020 No
Xiang Jiongjion Zhejiang ZPC Sales Co. Ltd. Executive director May 1 2021 No
71 / 276 Full Text of 2024 Annual Report
g
Xiang Jiongjion
g Zhoushan ZPC Trading Co. Ltd. Executive director May 1 2023 No
Xiang Jiongjion
g Zhoushan ZPC Sales Co. Ltd. Executive director No
Xiang Jiongjion
g Zhejiang Rongtong Chemical Fiber New Material Co. Ltd.Executive Director General Ma
nager No
Xiang Jiongjion
g Taizhou ZPC Sales Co. Ltd. Executive director February 1 2024 No
Xiang Jiongjion
g Ningbo ZPC Sales Co. Ltd. Executive director December 1 2023 No
Xiang Jiongjion
g Zhejiang Rongyi Chemical Fiber Co. Ltd. Executive Director Manager March 1 2024 No
Xiang Jiongjion Shanghai Lingang New Area Jingang Shengyuan Real Estat
g e Co. Ltd. Director November 1 2021 No
Xiang Jiongjion Shanghai Lingang New Area Jingang Rongsheng Real Estat
g e Co. Ltd. Director July 1 2023 No
Xiang Jiongjion Sanyuan Holdings Group Hangzhou Thermal Power Co. Lt
g d. Supervisor June 1 2012 No
Xiang Jiongjion
g Zhejiang International Oil and Gas Trading Center Co. Ltd. Vice Chairman June 1 2020 No
Li Yongqing Ningbo Zhongjin Petrochemical Co. Ltd. Director April 21 2009 No
Li Yongqing Dalian Yisheng Investment Co. Ltd. Director December 19 2005 No
Li Yongqing Yisheng Dahua Petrochemical Co. Ltd. Director December 19 2005 No
Li Yongqing Zhejiang Shengyuan Chemical Fiber Co. Ltd. Vice Chairman June 15 2010 No
Li Yongqing Ningbo Hengyi Trading Co. Ltd. Director No
Li Yongqing Zhejiang Yisheng Petrochemical Co. Ltd. Director December 12 2002 No
Li Yongqing Rongxiang Chemical Fiber Co. Ltd. Director No
Li Cai’e Ningbo United Group Co. Ltd. Director May 18 2010 No
Li Cai’e Zhejiang Petroleum & Chemical Co. Ltd. Director June 18 2015 No
Li Cai’e Ningbo Zhongjin Petrochemical Co. Ltd. Director April 21 2009 No
Li Cai’e Dalian Yisheng Investment Co. Ltd. Director December 19 2005 No
72 / 276 Full Text of 2024 Annual Report
Li Cai’e Yisheng Dahua Petrochemical Co. Ltd. Director December 19 2005 No
Li Cai’e Rongxiang Chemical Fiber Co. Ltd. Vice Chairman No
Li Cai’e Rongsheng New Materials (Taizhou) Co. Ltd. Director December 01 2023 No
Li Cai’e Rongsheng Technology Co. Ltd. Director No
Yu Fengdi Suzhou Shenghui Equipment Co. Ltd. Director December 1 2019 No
Yan Jianmiao Zhejiang University Professor September 1 1998 Yes
Yan Jianmiao Zhejiang Garden Biopharmaceutical Co. Ltd. Independent Director February 1 2021 Yes
Yan Jianmiao Zhejiang Garden Biopharmaceutical Co. Ltd. Independent Director August 27 2021 Yes
Yan Jianmiao Kingdom Holdings Limited Independent non-executive director Yes
Shao Yiping Zhejiang University of Finance and Economics Professor July 1 1988 Yes
Shao Yiping UE Furniture Co. Ltd. Independent Director February 22 2021 Yes
Shao Yiping Zhongtian Service Co. Ltd. Independent Director October 12 2020 Yes
Zheng Xiaodon
g Beijing JT&N Law Firm Partner December 1 2009 Yes
Zheng Xiaodon
g GigaDevice Semiconductor Inc. Director September 12 2023 Yes
Zheng Xiaodon
g Beijing Foyou Pharmaceutical Co. Ltd. Independent Director June 14 2019 Yes
Sun Guoming Rongsheng New Materials (Taizhou) Co. Ltd. Chairman of the Board of Supervisors Supervisor December 01 2023 No
Sun Guoming Zhejiang ZPC Sales Co. Ltd. Supervisor May 1 2021 No
Sun Guoming Zhoushan ZPC Sales Co. Ltd. Supervisor No
Sun Guoming .Zhejiang Rongshen New Materials Co. Ltd. Supervisor June 1 2023 No
Sun Guoming Zhejiang Huiyu New Materials Co. Ltd. Supervisor June 1 2023 No
Sun Guoming Zhejiang Shengcheng New Materials Co. Ltd Supervisor June 1 2023 No
Li Guoqing Zhejiang Shengyuan Chemical Fiber Co. Ltd. Supervisor June 26 2006 No
Li Guoqing Rongxiang Chemical Fiber Co. Ltd. Supervisor No
Xu Yongming Zhejiang Yongsheng Technology Co. Ltd. Chairman General Manager No
Zhou Xianhe Zhejiang Shengyuan Chemical Fiber Co. Ltd. General Manager June 1 2017 No
73 / 276 Full Text of 2024 Annual Report
Zhou Xianhe .Zhejiang Rongshen New Materials Co. Ltd. Manager June 1 2023 No
Zhou Xianhe Zhejiang Huiyu New Materials Co. Ltd. Manager June 1 2023 No
Zhou Xianhe Zhejiang Shengcheng New Materials Co. Ltd Manager June 1 2023 No
Quan Weiying Zhejiang Yisheng Petrochemical Co. Ltd. Supervisor No
Quan Weiying Hong Kong Sheng Hui Limited Director July 5 2007 No
Wang Yafang Rongsheng New Materials (Taizhou) Co. Ltd. Director December 01 2023 No
Wang Yafang Suzhou Shenghui Equipment Co. Ltd. Director May 14 2018 No
Wang Yafang Zhejiang Daishan Rural Commercial Bank Co. Ltd. Director February 5 2018 No
Wang Yafang Dalian Yishengyuan Property Co. Ltd. Supervisor March 19 2018 No
Wang Yafang Hangzhou Shengyuan Real Estate Development Co. Ltd. Supervisor June 24 2014 No
Wang Yafang Rongsheng Technology Co. Ltd. Supervisor April 28 2016 No
Wang Yafang Hainan Shenggu Petrochemical Equipment Investment Co. Ltd. Supervisor December 21 2018 No
Description of e
mployment in ot None
her units
Penalties imposed by securities regulatory authorities in the past three years on the Company’s current and dismissed directors supervisors and senior management in
the reporting period
□Applicable □ Not applicable
74 / 276 Full Text of 2024 Annual Report
In January 2023 Chairman Li Shuirong General Manager Xiang Jiong Chief Financial Officer Wang Yafang
and Secretary of the Board Quan Weiying were ordered to rectify matters including non-standard revenue
recognition and accounting treatment in trade business in 2020-2021. The above matters have been rectified. For
details please refer to the Announcement on the Company and Relevant Personnel Receiving a Warning Letter from
Zhejiang Securities Regulatory Bureau (Announcement No.: 2023-002) at CNINFO website (www.cninfo.com.cn).In May 2024 Chairman Li Shuirong General Manager Xiang Jiongjiong CFO Wang Yafang and Board
Secretary Quan Weiying were ordered to rectify inaccurate disclosure of performance forecast information. These
matters have been fully rectified. For details please refer to the Announcement on the Company and Relevant
Personnel Receiving a Warning Letter from Zhejiang Securities Regulatory Bureau (Announcement No.: 2024-038)
at CNINFO website (www.cninfo.com.cn).
3. Remuneration of the Directors Supervisors and Senior Management
Decision-making procedure basis of determination and actual payment of remuneration of the directors supervisors
and senior management
According to the Articles of Association and the Work Regulations of the Remuneration and Appraisal
Committee of the Board of Directors the remuneration of and its payment to directors and supervisors should be
determined by the General Meeting of Shareholders. The directors and supervisors who hold specific positions in
the Company receive remuneration based on their post and the internal remuneration system and receive no further
allowances. The Remuneration and Appraisal Committee would assess the annual performance of the senior
executives and determine their remuneration based on the evaluation findings. The pay package is then submitted
to the Board of Directors for deliberation and approval. In conclusion the remuneration of the Company’s directors
supervisors and senior executives is determined by corporate performance the current remuneration system and
personnel performance appraisal and changes in sustainable development performance indicators are incorporated
into the remuneration structure of directors supervisors and senior management with remuneration being closely
linked to sustainable development objectives. The assessment involves HSE daily supervision and management
(including contractors) accident management safety training employee satisfaction and business ethics. The
Company conducts annual assessment of directors supervisors and senior executives in accordance with the
assessment requirements and confirms the year-end bonus allocation plan with the assessment scores.Remuneration of the Company’s Directors Supervisors and Senior Management During the Reporting Period
Unit：RMB 10000
Whether
Total Pre-tax Receiving
Remuneration Remuneration Name Gender Age Title Status from the from the
Company Company’s Connected
Party
Li Shuirong Male 69 Chairman Incumbency 471.52 No
Alharbi Mitib
Awadh M Male 48 Director Incumbency Yes
Xiang Director and General
Jiongjiong Male 42 Manager Incumbency 217.72 No
Li Yongqing Male 61 Director Incumbency Yes
Li Cai’e Female 62 Director Incumbency Yes
75 / 276 Full Text of 2024 Annual Report
Yu Fengdi Female 57 Director Incumbency Yes
Yan Jianmiao Male 60 Independent Director Incumbency 16.00 No
Shao Yiping Female 62 Independent Director Incumbency 16.00 No
Zheng
Xiaodong Male 47 Independent Director Incumbency 16.00 No
Sun Guoming Male 44 Chairman of the Board of Supervisors Incumbency Yes
Li Guoqing Male 55 Supervisor Incumbency Yes
Xu Yongming Male 54 Supervisor Incumbency 161.33 No
Zhou Xianhe Male 50 Deputy General Manager Incumbency 151.87 No
Quan Weiying Female 47 Secretary of the Board of Directors Incumbency 93.15 No
Wang Yafang Female 46 Chief Financial Officer Incumbency 94.32 No
Total 1237.91
Description of other situations
□ Applicable □ Not applicable
VI. The Performance of Duties of Directors During the Reporting Period
1. Convening of the Board of Directors Meetings during the reporting period
Session Convening Disclosure date Date Meeting Resolution
The Sixteenth Meeting January 2 January 3 For details please refer to CNINFO (http://www.cninfo.com.cn) of the Sixth Session of 2024 2024 Announcement on Resolutions of the Sixteenth Meeting of the Sixth the Board of Directors Session of the Board of Directors (Announcement No.: 2024-001)
The Seventeenth For details please refer to CNINFO (http://www.cninfo.com.cn)
Meeting of the Sixth April 24 April 26 2024 Announcement on Resolutions of the Seventeenth Meeting of the Session of the Board of 2024 Sixth Session of the Board of Directors (Announcement No.: 2024-
Directors 022)
The Eighteenth Meeting For details please refer to CNINFO (http://www.cninfo.com.cn)
of the Sixth Session of April 29 April 30 2024 Announcement on Resolutions of the Eighteenth Meeting of the
the Board of Directors 2024 Sixth Session of the Board of Directors (Announcement No.: 2024-033)
The Nineteenth Meeting For details please refer to CNINFO (http://www.cninfo.com.cn)
of the Sixth Session of August 27 August 28 Announcement on Resolutions of the Nineteenth Meeting of the
the Board of Directors 2024 2024 Sixth Session of the Board of Directors (Announcement No.: 2024-051)
The Twentieth Meeting
of the Sixth Session of October 29 October 30
For details please refer to CNINFO (http://www.cninfo.com.cn)
2024 2024 Announcement on Resolutions of the Twentieth Meeting of the Sixth the Board of Directors Session of the Board of Directors (Announcement No.: 2024-057)
The Twenty-first For details please refer to CNINFO (http://www.cninfo.com.cn)
Meeting of the Sixth December December 17 Announcement on Resolutions of the Twenty-first Meeting of the
Session of the Board of 16 2024 2024 Sixth Session of the Board of Directors (Announcement No.: 2024-
Directors 064)
76 / 276 Full Text of 2024 Annual Report
2. Directors’ attendance at the Board of Directors Meetings and General Meeting of Shareholders
Directors’ Attendance at the Board of Directors Meetings and General Meeting of Shareholders
Number of
the Board of Number Number of Number Whether Number of
Directors of Attendance Number of of Being Absent Attendance
Name of Meeting that Presence
at the Attendance from the
Should be at the Board of at the Board
Absence Board of at the
Directors Attended Board of Directors of Directors
from the General
Meeting by Meeting by Board of
Directors
Meeting Meeting of During the Directors Correspon Proxy Directors Twice in a ShareholdeReporting Meeting dence Meeting Row rs Period
Li Shuirong 6 0 6 0 0 2
Alharbi Mitib
Awadh M 6 0 6 0 0 0
Xiang Jiongjiong 6 0 6 0 0 1
Li Yongqing 6 1 5 0 0 2
Li Cai’e 6 1 5 0 0 2
Yu Fengdi 6 1 5 0 0 2
Yan Jianmiao 6 1 5 0 0 1
Shao Yiping 6 1 5 0 0 1
Zheng Xiaodong 6 1 5 0 0 1
3. Disagreement voiced by directors on relevant corporate matters
Whether directors propose an objection to the Company’s relevant matters
□ Yes □ No
During the reporting period the directors voiced no disagreement on relevant corporate matters.
4. Additional information on the performance of duties of directors
Whether directors’ suggestions to the Company are adopted
□Yes □No
Explanations on acceptance or rejection of directors’ suggestions to the Company
Acting in accordance with the Company Law of the People’s Republic of China the Securities Law of the People’s
Republic of China the Articles of Association the Rules of Procedure of the Board of Directors the Code of
Independent Directors and other applicable laws and regulations the Company’s directors seek to have a detailed
understanding of corporate activities focus on the standardized business operations exercise their rights prudently
earnestly perform their duties and attend relevant meetings. They also put forward valuable suggestions to improve
the Company’s systems and business decision-making and conscientiously review different proposals so as to play
their role in strengthening the internal supervision mechanism and safeguarding the legitimate rights and interests
of the Company and all its shareholders.
77 / 276 Full Text of 2024 Annual Report
VII. The Special Committees under the Board of Directors During the Reporting Period
Number Other Matters Matters that
Name Members of Convening date Content of Meeting Important Opinions and Suggestions
Concerning Raise
Sessions Performance Disagreement of Duties (If Any)
In terms of internal audit the Audit Committee
Deliberate on the following examined the implementation of the internal audit
proposals: department’s work plan and verified the audit results. In terms of financial reports the Audit
1. Rongsheng Petrochemical Committee communicated with the accounting
Co. Ltd. 2023 Q4 Internal department and external accountants examined
Audit Work Report the norms of the financial system and the
2. Rongsheng Petrochemical preparation process for financial reports and All the
January 19 Co. Ltd. 2023 Internal Audit ensured the accuracy and integrity of the reports. contents of the
2024 Work Report In terms of internal control the Audit Committee meeting were None
3. Rongsheng Petrochemical agreed that the Company has established a well-
passed after
review.Co. Ltd. 2024 Internal Audit designed internal control framework and that the
Li Yongqing Li Work Plan internal control department has fully carried out
the internal control test process in strict
The Audit Cai’e Yan 4. Rongsheng Petrochemical Jianmiao Shao 5 Co. Ltd. 2024 Q1 Internal accordance with the relevant norms and Committee Yiping Zheng Audit Work Plan regulations so as to effectively control the gaps in
Xiaodong internal control and improve the capability in this
respect.Deliberate on the following
proposals:
1. Evaluation Report of the According to the requirements of laws and
Board of Directors on the regulations combined with the actual situation of All the
April 22 Accounting Firm’s the Company it reviewed the annual performance contents of the
2024 Performance in 2023 of accounting firms internal audit supervision meeting were None responsibilities and the renewal of audit passed after
2. Report of the Audit institutions and guided the orderly development review.
Committee of the Board of of internal audit work.Directors on the Supervision of
Accounting Firms in 2023
78 / 276 Full Text of 2024 Annual Report
3. 2023 Annual Report of
Rongsheng Petrochemical Co.Ltd.
4. Proposal on Changes to
Accounting Policies of
Rongsheng Petrochemical Co.Ltd.
5. Proposal on Reappointing
the 2024 Annual Audit Firm of
Rongsheng Petrochemical Co.Ltd.
6. 2023 Annual Internal
Control Self-Assessment
Report of Rongsheng
Petrochemical Co. Ltd.
7.
Appointment Management
System> of Rongsheng
Petrochemical Co. Ltd.Deliberate on the following
proposals:
1. Rongsheng Petrochemical
Co. Ltd. 2024 Q1 Internal In line with the legal guidance and the Company’s All the
April 26 Audit Work Report actual conditions the Audit Committee reviewed contents of the
2024 the quarterly report put forward opinions on the meeting were None 2. Rongsheng Petrochemical internal audit results and guided the internal audit passed after
Co. Ltd. 2024 Q2 Internal efforts. review.Audit Work Plan
3. Rongsheng Petrochemical
Co. Ltd. 2024 Q1 Report
Deliberate on the following
proposals: In line with the legal guidance and the Company’s All the
August 15 1. Rongsheng Petrochemical actual conditions the Audit Committee reviewed contents of the
2024 Co. Ltd. 2024 Q2 Internal the quarterly report put forward opinions on the meeting were None
Audit Work Report internal audit results and guided the internal audit passed after
2. Rongsheng Petrochemical efforts. review.
Co. Ltd. 2024 Q3 Internal
79 / 276 Full Text of 2024 Annual Report
Audit Work Report
3. Rongsheng Petrochemical
Co. Ltd. 2024 Semi-annual
Internal Audit Work Report
4. Rongsheng Petrochemical
Co. Ltd. 2024 Semi-annual
Report
Deliberate on the following
proposals:
1. Rongsheng Petrochemical
Co. Ltd. 2024 Q3 Internal In line with the legal guidance and the Company’s All the
October Audit Work Report actual conditions the Audit Committee reviewed contents of the
25 2024 the quarterly report put forward opinions on the meeting were None 2. Rongsheng Petrochemical internal audit results and guided the internal audit passed after
Co. Ltd. 2024 Q4 Internal efforts. review.Audit Work Report
3. Rongsheng Petrochemical
Co. Ltd. 2024 Q3 Report
During the reporting period the Nominating
Committee met to fully discuss the size and
All members reviewed the composition of the Board of Directors and studied
Shao Yiping Li work in the past year evaluated the rationality of the election conditions selection
The Shuirong Yu the effectiveness of the procedures and term of office of the Company’s
All the
April 15 nomination process discussed directors and senior executives in accordance with contents of the Nominating Fengdi Yan 1
Committee Jianmiao Zheng 2024 and determined the new the Company Law of the People’s Republic of
meeting were None
Xiaodong nomination strategy and China the Guidelines on Corporate Governance
passed after
worked out the work plan for for Listed Companies the Articles of Association review.the next year. and other applicable laws and regulations and in
combination with the Company’s actual
conditions.All committee members 2024 Key Business Plans: 1. Green & low-carbon
Li Shuirong Li reviewed the company’s 2023 to accelerate technological breakthrough; 2. All the
The Strategy Yongqing Yan April 16 operational management and Quality & efficiency enhancement to strengthen contents of the & ESG Jianmiao Shao 1 2024 ESG-related work deeply brand building; 3. Coordinated advancement to meeting were None Committee Yiping Zheng integrated ESG concepts and accelerate project implementation; 4. Software- passed after
Xiaodong formulated major 2024 hardware integration to improve management and review.business strategies through control capabilities; 5. Internal promotion &
80 / 276 Full Text of 2024 Annual Report
discussions. external recruitment to expand talent pool.All committee members
examined the 2023 During the reporting period the Remuneration and
Yan Jianmiao Li compensation of directors Appraisal Committee reviewed the rationality of The Shuirong Yu supervisors and senior the remuneration package and policy of the
All the
Remuneration Fengdi Shao 1 April 17 management and Company’s directors supervisors and senior
contents of the
and Appraisal Yiping Zheng 2024 discussed/formulated the 2024 executives and conducted performance evaluation
meeting were None
Committee Xiaodong performance-based on them according to their authority and major
passed after
compensation plan of directors responsibilities along with the internal finances review.supervisors and senior and KPI performance for 2023.management.The Risk Control Committee analyzed the
situation in 2023 and agreed that in 2024 the
Company should continue to focus on the
overarching business objectives summarize and
All committee members implement the fundamental risk control processes
Zheng Xiaodong analyzed internal/external risks
across the major links key fields and even the
whole process foster a good risk control culture All the The Risk
Control Yan Jianmiao Shao
faced during the company’s contents of the
Yiping Li Cai’e 1
April 12 production and operations in and improve the comprehensive risk management 2024 meeting were None Committee Xiang Jiongjiong 2023 and made suggestions on
system. To that end the Company should develop passed after
risk control for operation in risk management strategies evaluate the review.
2024. functional structure of the risk control organization and improve the risk control
information system and internal control system so
as to achieve the annual targets in managing risks
and enhance the Company’s risk resilience and
long-term profitability.VIII. The Work of the Board of Supervisors
During the reporting period whether the Board of Supervisors has found that the Company was at risk in the process of its supervisory activities
□ Yes □ No
The Board of Supervisors voiced no disagreement on the supervisory matters during the reporting period.
81 / 276 Full Text of 2024 Annual Report
IX. Corporate Staff
1. Staff number professional composition and educational background
Number of Staff on the Parent Company’s Payroll at the End 1562
of the Reporting Period
Number of Staff on the Main Subsidiaries’ Payroll at the 17096
End of the Reporting Period
Total Number of Staff on the Company’s Payroll at the End 19077
of the Reporting Period
Total Number of Staff Receiving Remuneration 19077
Number of Retired Staff Whose Pensions Are Covered by the 0
Parent Company and Main Subsidiaries
Professional Composition
Categories Number
Production Staff 13655
Sales Staff 377
Technical Staff 3135
Financial Staff 116
Administrative Staff 1265
Logistical Staff 529
Total 19077
Educational Background
Categories Number
Bachelor’s Degree or Above 5961
Junior College 7043
Senior High School and Technical Secondary School 2540
Other 3533
Total 19077
2. Remuneration policy
The Company abides by the Labor Law of the People’s Republic of China and other applicable rules and
regulations and takes a performance-based remuneration allocation approach. The Company continues to improve
the pay and benefits structure determines the salary based on an employee’s responsibility and capability and
employs a differential reward mechanism so as to motivate the employees and inspire their creativity.
3. Training program
The Company values the development of employees’ business skills and has built a well-designed career
development platform to enable employees to identify their future paths and unlock their full potential. The
Company delivers professional and practical training programs in a systematic way by combining theory and
practice to improve the employees’ comprehensive capability in the professional field.
82 / 276 Full Text of 2024 Annual Report
4. Labor outsourcing
□ Applicable □ Not applicable
X. Distribution of Corporate Profits and Shift of Public Accumulation Funds to Capital Stock
Formulation implementation or adjustment of profit distribution policy especially the cash dividend policy during
the reporting period
□Applicable □ Not applicable
According to the profit distribution plan for 2023 approved at the 17th Meeting of the Sixth Session of the
Board of Directors on April 24 2024 based on the current equity base of 9573144542 shares which is based on
existing total share capital of 10125525000 shares deducted by the repurchased shares of 552380458 shares the
Company plans to give RMB 1.00 in cash (tax included) to all its shareholders for every ten shares they hold. There
will be no equity dividend or conversion of equity reserve into the share capital of the Company. The Company has
completed the profit distribution according to the plan.Special description of cash dividend policy
Whether it complies with provisions of the Articles of Association or resolution of the General Meeting: Yes
Whether the dividend standard and proportion are specific and clear: Yes
Whether relevant decision-making procedures and mechanisms are complete: Yes
Whether the independent directors fulfill their duties and obligations: Yes
If the Company fails to pay cash dividends it shall disclose the specific reasons and the next actions to be
taken to enhance the investor’s return level: Not applicable
Whether the medium and small shareholders fully raise their opinions and demands and whether their
lawful rights and interests are protected fully: Yes
Whether the conditions and procedures for adjusting or changing cash dividend policy are compliant and
transparent: Yes
The Company was profitable during the reporting period and the parent company’s profit available for distribution
to shareholders was positive but no cash dividend distribution proposal was made.□ Applicable □ Not applicable
Profit distribution and conversion of capital reserve into share capital during the reporting period
□ Applicable □ Not applicable
Number of Bonus Shares Given for Ten Shares(share) 0
Number of distributed dividends per ten shares (RMB) (tax
inclusive) 1
Share capital base of distribution plan (share) 9572292142
Amount of cash dividends (RMB) (tax inclusive) 957229214.20
Amount of cash dividends paid in other means (such as share
repurchase) (RMB) 0
Total amount of cash dividends (including other means)
(RMB) 957229214.20
Distributable profit (RMB) 2785571654.14
Proportion of total cash dividends (including other means)
in total profit distribution 34.36%
Cash dividends
83 / 276 Full Text of 2024 Annual Report
The cash bonus accounts for at least 80% in this profit distribution when the company is in growth stage of development and has
major fund expenditure arrangement
Detailed Information on the Distribution of Corporate Profits and the Shift Plan of Public Accumulation Funds to Capital
Stock
As audited by Pan-China Certified Public Accountants (Special General Partnership) the Company (parent company) achieved
a net profit of RMB 2965914213.54 in 2024 including an undistributed profit of RMB 1073563316.15 at the beginning of the
year a statutory surplus reserve of RMB 296591421.35 withdrawn in the current period and a cash dividend of RMB
957314454.2 from the previous year. As of December 31 2024 the actual profit available for shareholder distribution was RMB
2785571654.14.
The Company plans to distribute a cash dividend of RMB 1.00 (tax included) to all shareholders for every 10 shares. Based on
9572292142 shares after deducting 553232858 shares that have been repurchased accumulatively as of the disclosure date of this
announcement the total cash dividend to be distributed is RMB 957229214.20(tax included) and the remaining undistributed
profits are carried forward to the next year. The shares held in the Company’s dedicated securities repurchase account will not be
included in this round of profit distribution.. In the case that before the registration date of equity distribution the total share capital
of the Company has changed due to the conversion of convertible bonds into shares share repurchase cancellation of share
repurchase granted by equity incentive reservation of partial share grant registration and others the total amount of distribution is
adjusted according to the principle of distribution proportion unchanged.XI. Implementation of the Equity Incentive Plan Employee Stock Ownership Plan or other
Employee Incentives
□ Applicable □ Not applicable
The Company had no implementation of a stock incentive plan employee stock ownership plan or other employee
incentives during the reporting period.XII. Institutional Development and Implementation of Internal Control During the Reporting
Period
1. Construction and implementation of internal control
The Company has established a sound internal control management system in accordance with the applicable
laws regulations and normative documents such as the Company Law of the People’s Republic of China the
Securities Law of the People’s Republic of China the Guidelines on the Bylaws of Listed Companies and the
Guidelines on Corporate Governance for Listed Companies and in combination with the actual conditions facing
the Company. The Company has developed internal management systems concerning external guarantees and
related-party transactions regularly inspected and evaluated various systems and amended them in line with the
new laws and regulations issued by the regulatory authorities.
2. Specific information on major internal control defects found during the reporting period
□ Yes □ No
XIII. Management Control of Subsidiaries during the Reporting Period
Not applicable
XIV. Internal control assessment report and internal control audit report
1. Internal control assessment report
84 / 276 Full Text of 2024 Annual Report
Report Disclosure Date April 25 2025
Report Disclosure Index The Internal Control Self-Assessment Report 2024 is available on CNINFO Website (http://www.cninfo.com.cn).Proportion of the Total
Assets of the
Organizations Included in
the Assessment Scope to 92.91%
Those of the Company’s
Consolidated Financial
Statements
Proportion of the
Operating Revenues of the
Organizations Included in
the Assessment Scope to 91.83%
Those of the Company’s
Consolidated Financial
Statements
Defect Identification Standards
Categories Financial Statements Non-Financial Statements
Signs of major defects in financial statements
include: (1) Invalid internal control environment; (2)
Misconduct committed by directors supervisors and
senior executives; (3) External auditors identify a
material mistake in the current financial statement The following scenarios are identified as
neglected by the Company; (4) Invalid supervision constituting material defects: (1) The
by the Audit Committee and internal audit decision-making procedures are not sound;
department on internal control; and (5) Other defects (2) Violation of national laws and
that may affect the judgment of readers of the report. regulations such as causing environmental
Qualitative Standards Signs of important defects in financial statements pollution; (3) Gradual loss of managers or
include: Individual internal control defects or in technicians; (4) Frequent negative news in
combination with other defects have a reasonable the media; (5) The flaws of internal control
possibility that prevents the timely detection and assessments especially material or
correction of any misstatements in the financial important defects are not rectified; and (6)
statement that should be paid heed to by the Board Lack of institutional control for important
and management although such misstatements may operations or systematic institutional failure.not reach or exceed the importance level. General
defects refer to other control defects apart from the
material and important defects mentioned above.The operating revenue and total assets are taken as The operating revenue and total assets are
the measurement indicators. If the losses resulting taken as the measurement indicators. If the
from internal control defects are related to the profit losses resulting from internal control defects
statement the operating revenue will be taken as the are related to the profit statement the
indicator. If the amount of misstatement in the operating revenue will be taken as the
financial report caused by the individual defect or in indicator. If the amount of misstatement in
combination with other defects is less than 0.5% of the financial report caused by the individual
Quantitative Standards the operating revenue it is recognized as a general defect or in combination with other defects
defect. If the amount exceeds 0.5% but lower than is less than 0.5% of the operating revenue it
1% of the operating revenue it is recognized as an is recognized as a general defect. If the
important defect. If the amount exceeds 1% of the amount exceeds 0.5% but lower than 1% of
operating revenue it is recognized as a material the operating revenue it is recognized as an
defect. If the losses resulting from internal control important defect. If the amount exceeds 1%
defects are related to asset management the total of the operating revenue it is recognized as
assets will be taken as the indicator. If the amount of a material defect. If the losses resulting from
misstatement in the financial report caused by the internal control defects are related to asset
85 / 276 Full Text of 2024 Annual Report
individual defect or in combination with other management the total assets will be taken as
defects is less than 0.5% of the operating revenue it the indicator. If the amount of misstatement
is recognized as a general defect. If the amount in the financial report caused by the
exceeds 0.5% but lower than 1% of the operating individual defect or in combination with
revenue it is recognized as an important defect. If other defects is less than 0.5% of the
the amount exceeds 1% of the operating revenue it operating revenue it is recognized as a
is recognized as a material defect. general defect. If the amount exceeds 0.5%
but lower than 1% of the operating revenue
it is recognized as an important defect. If the
amount exceeds 1% of the operating
revenue it is recognized as a material defect.Number of Material Defects
in Financial Statements 0
Number of Material Defects
in Non-Financial Statements 0
Number of Important
Defects in Financial 0
Statements
Number of Important
Defects in Non-Financial 0
Statements
2. Internal control audit report
□Applicable □ Not applicable
Review Suggestions Section in the Internal Control Audit Report
In our opinion Rongsheng Petrochemical maintained in all material respects effective internal control over financial reporting as
of December 31 2024 in accordance with the Basic Standard for Enterprise Internal Control and related provisions.Report Disclosure Status Disclosed
Report Disclosure Date April 25 2025
Report Disclosure Index The Internal Control Audit Report in 2024 is available on CNINFO Website (http://www.cninfo.com.cn).Suggestions Category Standard Clean Opinion
Whether Having Material Defects in Non-Financial
Statements No
Whether the accounting firm issued the internal control audit report of non-standard opinion
□ Yes □ No
The internal control audit report of the accounting firm is in line with the self-assessment report of the Board of
Directors or not
□Yes □No
XV. Rectification of Self-Examined Problems under the Special Campaign of Corporate Governance for
Listed Companies
During the reporting period the Company complied with the China Securities Regulatory Commission’s
Notice on Launching the Special Campaign of Corporate Governance for Listed Companies (CSRC [2020] No. 69)
and examined the problems in corporate governance conscientiously and responsibly. The Company also received
effective guidance from the local regulatory authorities improved the ledger documenting the progress of the
86 / 276 Full Text of 2024 Annual Report
Special Campaign and offered timely feedback on the self-examination results. We found zero problems that need
rectifying.
87 / 276 Full Text of 2024 Annual Report
Section V Environmental and Social Responsibility
I. Major Environmental Issues
Whether the listed company and its subsidiaries are key pollutant discharging units announced by environmental
protection authorities
□Yes □No
Environmental protection-related policies and industry standards
The Company and its subsidiaries have strictly abided by the laws and regulations such as the Environmental
Protection Law of the People’s Republic of China Law of the People’s Republic of China on the Prevention and
Control of Environmental Pollution by Solid Waste Law of the People’s Republic of China on Prevention and
Control of Environmental Noise Pollution Law of the People’s Republic of China on Prevention and Control of Air
Pollution Law of the People’s Republic of China on Prevention and Control of Radioactive Pollution and the
requirements of the ecological environmental protection department and timely handled the environmental
protection permit procedures such as emission right applied for and obtained the pollutant discharge permit
business license for hazardous waste and radiation safety permit; They have implemented procedures such as filing
the sewage outlet into the sea filing the self-monitoring plan and filing the emergency plan for sudden
environmental incidents and ensured the legal start-up and legitimate operation of relevant devices of all projects
and supporting projects.
1. Executive standards
(1) The flue gas from plant heating furnace catalytic regeneration flue gas tail gas from sulfur plant reforming
catalytic regeneration flue gas organic waste gas and the concentration of air pollutants at the plant boundary shall
implement the special emission limits of air pollutants specified in Emission Standard of Pollutants for Petroleum
Refining Industry (GB31570-2015 including the 2024 amendment) Emission Standard of Pollutants for Petroleum
Chemistry Industry (GB31571-2015 including the 2024 amendment) and Emission Standard of Pollutants for
Synthetic Resin Industry (GB31572-2015 including the 2024 amendment).
(2) The sulfuric acid mist of sulfuric acid plants shall be subject to the special emission limits of atmospheric
pollutants specified in the Emission Standard of Pollutants for Sulfuric Acid Industry (GB26132-2010).
(3) The emission of odor pollutants shall comply with the Class II standard of Emission Standard for Odor
Pollutants (GB14554-93).
(4) The exhaust gas pollutants of the power boiler shall be subject to an 80% commitment value of emission
limit specified in Phase II of the Emission Standard of Air Pollutants for Coal-fired Power Plants (DB33/2147-
2018).
(5) Both integrated projects and base wastewater treatment plants shall implement the special emission limits
specified in Emission Standard of Pollutants for Petroleum Refining Industry (GB 31570-2015 including 2024
amendments) Emission Standard of Pollutants for Petrochemical Industry (GB 31571-2015 including 2024
amendments) and Emission Standard of Pollutants for Synthetic Resin Industry (GB 31572-2015 including 2024
amendments).
(6) The noise at the boundary of the factory shall comply with the Class III standard of Emission Standard for
Noise at Boundary of Industrial Enterprises (GB12348-2008).
(7) The Integrated Project and the Solid Waste Disposal Center shall implement the Standard for Pollution
Control on the Non-hazardous Industrial Solid Waste Storage and Landfill (GB 18599-2001) the Standard for
Pollution Control of Hazardous Waste Storage (GB 18597-2001) the Standard for Pollution Control of Hazardous
88 / 276 Full Text of 2024 Annual Report
Waste Incineration (GB 18484-2020) and the Standard for Pollution Control of Hazardous Waste Landfill (GB
18598-2019).
2. Quality standards
(1) The base and the points of concern shall implement the Class I (Class I area) and Class II (Class II area)
standards in the Ambient Air Quality Standard (GB3095-2012) according to the category of ambient air functional
areas. The Cm value specified in Detailed Explanation of Integrated Emission Standard of Air Pollutants is taken
as the reference value of quality standard for non-methane total hydrocarbon (2.0mg/m3).
(2) The monitoring of surface water shall comply with the Standard for Seawater Quality (GB3097-1997).
Environmental protection administrative licensing
S/N Certificate Certificate No. Issued by Validity term
1 Pollutant Discharge Permit of Ro 91330000255693873W001P Hangzhou Municipal Ecology an November ngsheng Petrochemical d Environment Bureau 5 2026
2 Pollutant Discharge Permit of ZP 913309003440581426001P Zhoushan Ecology and Environm July 14 202C ent Bureau 9
3 Radiation Safety Permit of ZPC ZHFZ [L2105] Zhoushan Ecology and Environm March 4 20ent Bureau 29
4 Pollutant Discharge Permit of Zhongjin Petrochemical 91330211764527945N001P
Zhenhai Branch of Ningbo Ecolo December
gy and Environment Bureau 2 2029
5 Radiation Safety Permit of Zhongjin Petrochemical ZHFZ [B2500]
Department of Ecology and Envi July 16 202
ronment of Zhejiang Province 8
6 Pollutant Discharge Permit for Niluoshan New Energy Co. Ltd. 91330211MA2CHYTM1K001V
Zhenhai Branch of Ningbo Ecolo December
gy and Environment Bureau 1 2029
7 Pollutant Discharge Permit of Yi 912102137873094570001R Dalian Ecology and Environment September sheng Dahua Bureau 5 2029
Radiation Safety Permit of Yishe LHFZ (B0001) Dalian Ecology and Environment November 8 ng Dahua Bureau 25 2026
Pollutant Discharge Permit of Sh 91330109754409144F001P Hangzhou Municipal Ecology 9 November engyuan Chemical Fiber and Environment Bureau 5 2026
10 Radiation Safety Permit of Sheng ZHFZ [A2408] Hangzhou Municipal Ecology December yuan Chemical Fiber and Environment Bureau 4 2028
Shaoxing Ecology and
11 Pollutant Discharge Permit of Y 91330621MA2887DL53001Q Environment Bureau February 6 ongsheng Technology 2029
Department of Ecology and
12 Radiation Safety Permit of Yongs ZHFZ [D2193] heng Technology Environment of Zhejiang
August 7 2
Province 027
13 Pollutant Discharge Permit of Ha
Ecological Environment Bureau
914603005527989627001P of Yangpu Economic Developm May 14 202inan Yisheng ent Zone 6
14 Radiation Safety Permit of Haina QHFZ [00153] Department of Emergency Mana December 2n Yisheng gement of Hainan Province 6 2026
15 Pollutant Discharge Permit of Zhejiang Yisheng 91330200744973411W001W
Ningbo Ecological Environment November
Bureau Beilun Branch 12 2029
16 Radiation Safety Permit of Zhejia
Department of Ecology and
ng Yisheng ZHFZ [B2005] Environment of Zhejiang
November
Province 10 2029
89 / 276 Full Text of 2024 Annual Report
Industry emission standards and specific situations of pollutant emissions involved in production and operation activities
Types of Names of
Company or main main Pollutant
Subsidiary pollutants pollutants Discharge
Number of Distribution
discharge of discharge Emission discharge Total Total certified Excessive
Name and and method concentration/intensity standards in emissions emissions emissions particular particular outlets outlets execution
pollutants pollutants
Rongsheng Ultra-clean of
Petrochemical Waste gas Smoke dust Organized 2 Rongxiang 2.357mg/m3 20mg/Nm3 1.37t/a 13.65t/a / furnace area
Rongsheng Waste gas Sulfur
Ultra-clean of
Petrochemical dioxide Organized 2 Rongxiang 3.462mg/m3 50mg/Nm3 2.26t/a 121.93t/a / furnace area
Rongsheng Ultra-clean of
Petrochemical Waste gas Nitric oxide Organized 2 Rongxiang 20.647mg/m3 150mg/Nm3 8.81046t/a 102.59t/a / furnace area
Rongsheng Volatile Ultra-clean of
Petrochemical Waste gas organic Organized 2 Rongxiang 0.633mg/m3 60mg/L 0.35t/a 110.38t/a / compounds furnace area
Rongsheng
Petrochemical Waste water
Ammonia Under
nitrogen control 1
Shengyuan
factory gate 1.72mg/m3 35mg/L 0.002t/a 0.16t/a /
Rongsheng Chemical Waste water oxygen Under Shengyuan Petrochemical control 1 factory gate 29.5mg/m3 500mg/Nm3 0.16t/a 3.69t/a / demand
Discharge Mean: 1.00mg/m3; GB31570
ZPC Waste gas Particulate matter after 68 In the factory Range: 0.0905- GB31571 118.57t/a 1566.86t/a / treatment 10.159mg/m3 GB31572
Discharge Mean: 3.01mg/m3; GB31570
ZPC Waste gas Sulfur dioxide after 100 In the factory Range: 0.026- GB31571 410.95t/a 2750.8t/a / treatment 24.798mg/m3 GB31572
Discharge Mean: 31.91mg/m3; GB31570
ZPC Waste gas Nitric oxide after 106 In the factory Range: 0.078- GB31571 4881.45t/a 7078.45t/a /
treatment 78.097mg/m3 GB31572
90 / 276 Full Text of 2024 Annual Report
Discharge GB31570
ZPC Waste water COD after 1 In the factory Mean: 31.13mg/m3;
treatment Range: 0.7-49.6mg/m3
GB31571 391.36t/a 524.04t/a /
GB31572
ZPC Waste water Ammonia
Discharge Mean: 0.107mg/m3; GB31570
nitrogen after 1 In the factory treatment Range: 0.01-2.57mg/m3
GB31571 1.47t/a 53.31t/a /
GB31572
Zhongjin
Petrochemical Waste gas
Sulfur Continuous
dioxide blow-down 22 Whole factory 7.45mg/m3
GB31570
DB33/2147 139.77t/a 251.49t/a /
Zhongjin Waste gas Nitric oxide Continuous Petrochemical blow-down 22 Whole factory 24.40mg/m3
GB31570
DB33/2147 458.05t/a 1085.334t/a /
Zhongjin Continuous GB31570
Petrochemical Waste gas Smoke dust blow-down 22 Whole factory 2.66mg/m3 DB33/2147 49.87t/a 191.19t/a /
Zhongjin Chemical
Petrochemical Waste water oxygen
Continuous 2 East side 75.98mg/L GB8978 60.61t/a 70.34t/a /
demand blow-down
Zhongjin Ammonia Continuous
Petrochemical Waste water nitrogen blow-down 2 East side 4.42mg/L GB8978 3.53t/a 17.16t/a /
Yisheng Southeast
Dahua Waste gas Nitric oxide Continuous 3 corner of the 33.42mg/m3 50mg/m3 162.04t/a 415t/a / plant
Yisheng Sulfur Southeast
Dahua Waste gas dioxide Continuous 3 corner of the 0.7mg/m3 35mg/m3 2.45t/a 251t/a / plant
Yisheng Southeast
Dahua Waste gas Smoke dust Continuous 3 corner of the 1.5mg/m3 5mg/m3 6.82t/a 56t/a / plant
Northwest
Yisheng Chemical Waste water oxygen Continuous 2 corner and Dahua north side of 72.58mg/L 300mg/L 882.57t/a 1862t/a / demand the plant
Yisheng Northwest
Dahua Waste water
Ammonia
nitrogen Continuous 2 corner and 0.77mg/L 30mg/L 9.39t/a 217t/a /
north side of
91 / 276 Full Text of 2024 Annual Report
the plant
Shengyuan One for use
Chemical Waste gas Particulate matter Organized and one for Furnace area 3.8mg/m3 20mg/Nm3 2.17t/a 8.74t/a / Fiber standby
Shengyuan One for use
Chemical Waste gas Sulfur dioxide Organized and one for Furnace area 1.68mg/m3 50mg/Nm3 1.12t/a 17.38t/a / Fiber standby
Shengyuan One for use
Chemical Waste gas Nitric oxide Organized and one for Furnace area 26.34mg/m3 150mg/Nm3 20.44t/a 52.15t/a /
Fiber standby
Shengyuan Non- Organized One for use Chemical Waste gas methane and and one for Furnace area 0.9mg/m3 60mg/L
0.77t/a 97.29t/a /
Fiber unorganized standby (organized)
Shengyuan Ammonia Southeast Chemical Waste water nitrogen Organized 1 corner of the 1.72mg/m3 35mg/L 0.0078t/a 1.3t/a / Fiber plant
Shengyuan Chemical Southeast
Chemical Waste water oxygen Organized 1 corner of the 29.57mg/m3 500mg/Nm3 0.7966t/a 2.74t/a /
Fiber demand plant
Emission
Yongsheng Organized Standard of Air
Technology Waste gas Nitric oxide emission 2 In the factory 39.71mg/m3 Pollutants for 27.271t/a 86t/a / Boilers
(GB13271-2014)
Emission
Yongsheng Waste gas Sulfur Organized
Standard of Air
Technology dioxide emission 2 In the factory 8.37mg/m3 Pollutants for 1.565t/a 106.2t/a / Boilers
(GB13271-2014)
Emission
Yongsheng Standard of Air
Technology Waste gas NmHc
Organized
emission 2 In the factory 4.04mg/m3 Pollutants for 15.245t/a 19.27t/a / Boilers
(GB13271-2014)
92 / 276 Full Text of 2024 Annual Report
Integrated
Yongsheng Chemical Under Wastewater
Technology Waste water oxygen control 1 In the factory 63.42mg/L Discharge 4.976t/a 10.8t/a / demand Standard
(GB31575-2015)
Integrated
Yongsheng Waste water Ammonia Under
Wastewater
Technology nitrogen control 1 In the factory 0.41mg/L Discharge 0.028t/a 1.35t/a / Standard
(GB31575-2015)
Boiler/heat Boiler: 4.82 mg/m3;
medium Heat medium furnace:
Hainan Discharge furnace/alkali 17.81 mg/m3; Alkali
Yisheng Waste gas SO2 after 2 furnace/No.1 furnace: 0.54 mg/m3;
GB13223-2011
treatment large No.1 large boiler: 13.80 GB13271-2014
56.1t/a 642.14t/a /
boiler/No.2 mg/m3; No.2 large
large boiler boiler: 11.78 mg/m3
Boiler/heat Boiler: 34.28 mg/m3;
medium Heat medium furnace:
Hainan Discharge furnace/alkali 58.04 mg/m3; Alkali
Yisheng Waste gas NOx after 2 furnace/No.1 furnace: 27.92 mg/m3;
GB13223-2011 154.58t/a 1038.85t/a /
treatment large No.1 large boiler: 39.19 GB13271-2014
boiler/No.2 mg/m3; No.2 large
large boiler boiler: 27.94 mg/m3
Boiler/heat Boiler: 5.67 mg/m3;
medium Heat medium furnace:
Hainan Discharge furnace/alkali 5.65 mg/m3; Alkali
Yisheng Waste gas Smoke dust after 2 furnace/No.1 furnace: 1.45 mg/m3;
GB13223-2011
GB13271-2014 23.42t/a 340.63t/a / treatment large No.1 large boiler: 1.07
boiler/No.2 mg/m3; No.2 large
large boiler boiler: 1.46 mg/m3
Hainan Discharge
Yisheng Waste water COD after 1 Sewage station 26.47mg/m3
GB31571-2015
treatment GB31572-2015
179.53t/a 544.41t/a /
Hainan Waste water Ammonia Discharge 1 Sewage station 0.38mg/m3 after GB31571-2015
2.62t/a 41.16t/a /
93 / 276 Full Text of 2024 Annual Report
Yisheng nitrogen treatment GB31572-2015
Zhejiang Discharge
Yisheng Waste gas SO2 after 2 Boiler island 10.1mg/m3 35mg/m3 24.61t/a 333.47t/a / treatment
Zhejiang Discharge
Yisheng Waste gas NOx after 2 Boiler island 17.6mg/m3 50mg/m3 64.23t/a 880.08t/a / treatment
Zhejiang Discharge
Yisheng Waste gas
Particulate
matter after 2 Boiler island 3.28mg/m3 10mg/m3 28.85t/a 110.46t/a / treatment
Zhejiang Discharge
Yisheng Waste water COD after 2 Sewage station 49.19mg/L 100mg/L 506.32t/a 880.08t/a / treatment
Zhejiang Waste water Ammonia
Discharge
Yisheng nitrogen after 2 Sewage station 0.16mg/L 8mg/L 1.65t/a 13.2t/a / treatment
Treatment of pollutants
Company name Types of pollutants Treatment technology and treatment mode
Waste gas waste wa The company began to construct the ultra-clean desulfurization tower and flue gas desulfurization and dust removal device in MRongsheng Petrochemical ter and solid waste arch 2016 which was put into operation in September 2016. At present the device is in good operation and can meet the flue gas emission standard of Xiaoshan District.Denitrification facilit Mainly include major exhaust gas treatment facilities including low-nitrogen burners ultra-low-nitroge
ies n burners selective catalytic reduction denitrification (SCR) selective non-catalytic reduction denitrification (SNCR) etc.Desulfurization & rec The dry gas desulfurization and sulfur recovery plant (1310000 tons/year) of the whole factory is oper
overy ated by seawater desulfurization alkaline scrubber and dual desulfurization unit to recover acid gas and acid water to produce sulfur.ZPC Waste gas Dust removal facility Including cyclone separators bag-type dust removal facilities electrostatic precipitators etc.The oil and gas recovery in the whole site is carried out by combining zoning and centralized treatment;
Organic waste gas tre the recovery system mainly adopts decentralized classification collection pretreatment + centralized ter
atment facilities minal treatment mode. The main treatment facilities include RTO regenerative incinerators CO catalyti
c oxidizers etc.Foul gas treatment fa Low-concentration odor treatment facilities in sewage plants (120000+150000m3/h) odor treatment faci
cilities lities in incineration plants (50000m3/h) and odor treatment facilities in landfills (50000m3/h).
94 / 276 Full Text of 2024 Annual Report
Abnormal working c Full-site flare incineration and flare gas recovery system (refinery flare gas recovery 38460m3/h + chem
ondition treatment ical flare gas recovery 2081m3/h).The factory area is subject to rain-sewage diversion and clean water-sewage diversion and the entire wastewater system is subje
ct to quality-based diversion and classified treatment. The main treatment units include the first phase + second phase oily waste
Waste water water treatment unit (2100 + 3400m3/h) the first phase + second phase high ammonia nitrogen wastewater treatment unit (500 + 500m3/h) the first phase + second phase high salt wastewater treatment unit (1100 + 1800m3/h) the first phase + second phase r
ecycled water unit (3600 + 5000m3/h) the cyanide-contained wastewater pretreatment unit (600m3/h) and the alkali residue was
tewater pretreatment (6m3/h). The main treatment technologies are physical method + biological method + biochemical method.The oil residue gasification & filter cake incineration recovery unit mainly processes the filter cake produced by the oil residue h
Solid waste ydrogen production unit to achieve volume reduction and resource utilization with a disposal scale of 108000 tons/year. Acrylonitrile waste liquid incinerators (148k + 148k t/a) PC waste liquid incinerators (15k + 25k t/a) and chemical waste incineration pl
ants (168k t/a) centrally treat organic waste liquids with low recovery value.Noise Set up a sound insulation room install sound attenuation and sound insulation equipment choose low-noise equipment make reasonable layout and ensure basic vibration prevention and noise reduction
Waste gas waste wa
Zhongjin Petrochemical ter solid waste and The prevention and control measures are designed constructed and put into use simultaneously with the main device according
noise to the EIA requirements. The operation is now in good condition.The prevention and control measures are strictly designed constructed and put into use simultaneously with the main equipment
Waste gas waste wa in accordance with the requirements of environmental impact assessment. Currently the operation is in good condition and all p
Yisheng Dahua ter solid waste and ollutants are discharged up to the standard. At the same time according to the rectification requirements proposed by the ecologi
noise cal and environmental protection department new environmental governance facilities have been added further improving the le
vel of environmental governance.Waste gas The boiler flue gas treatment plant operates properly with emissions compliant with the permit limits in Pollutant Discharge Permit.Shengyuan Chemical Fiber Waste water The wastewater station functions properly with wastewater discharge compliant with the permit limits in Pollutant Discharge Permit.Solid waste Industrial waste (312.9 tons) and hazardous waste (336.21 tons) are fully processed by licensed contractors.
1 set of stripper
Gas boiler flue gas low-nitrogen combustion system
Waste gas Waste gas treatment Secondary activated carbon adsorption device matched with film workshop
Yongsheng Technology
Pulse dust removal device for PTA feeding dust
1 set of odor generating unit capping and waste gas collection and treatment device in sewage station
Waste water Sewage Treatment 1 set of sewage treatment system with a treatment capacity of 1250t/d
95 / 276 Full Text of 2024 Annual Report
Rain and sewage
diversion clean water Establish rain and sewage diversion system and clean water and sewage diversion system in the factory
and sewage area; Standardize the sewage outlets in the factory area and install online monitoring devices for pH
diversion etc. COD and ammonia nitrogen
Set up a sound insulation room separately install sound attenuation and sound insulation equipment
Noise Noise control choose low-noise equipment make reasonable layout and ensure basic vibration prevention and noise
reduction
Solid waste Solid waste disposal Standardize the hazardous waste yards and general solid waste yards and dispose of hazardous waste
Emergency response plans for paroxysmal environment events
Emergency plan Filing number Filing time
Emergency Response Plan for Paroxysmal Environment Events of Rongsheng Petrochemical Co. Ltd. 330109-2022-045-L July 26 2022
Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Petroleum & Chemical Co. Ltd. 330921-2023-004-H July 11 2023
Emergency Response Plan for Paroxysmal Environment Events of Ningbo Zhongjin Petrochemical Co. Ltd. 330211-2022-019-H March 2022
Emergency Response Plan for Paroxysmal Environment Events of Yisheng Dahua Petrochemical Co. Ltd. 2102132023-066-H March 2023
Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Shengyuan Chemical Fiber Co. Ltd. 330109-2022-034-L June 2 2022
Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Yongsheng Technology Co. Ltd. 330603-2024-114-L October 11 2024
Emergency Response Plan for Paroxysmal Environment Events of Hainan Yisheng Petrochemical Co. Ltd. / December 2023
Emergency Response Plan for Paroxysmal Environment Events of Zhejiang Yisheng Petrochemical Co. Ltd. / September 2023
96 / 276 Full Text of 2024 Annual Report
Environmental self-monitoring scheme
The Company and its subsidiaries strictly abide by the environmental protection laws regulations and relevant
regulations of the state and local governments. The Company has established an environmental self-monitoring
scheme to ensure that all pollutants are discharged and disposed of in strict accordance with the requirements of
laws and regulations. The self-monitoring scheme is disclosed in the pollution source monitoring data management
system. The Company carries out pollution source monitoring in strict accordance with the monitoring scheme to
ensure that all pollutants are discharged in strict accordance with the requirements of laws and regulations and
entrusts a qualified third-party monitoring agency to carry out monitoring on a regular basis.Investment in environmental governance and protection and payment of environmental protection tax
The Company’s investment in environmental governance and protection in 2024 was RMB 272.7269 million.Measures were taken to reduce carbon emission and their effects during the reporting period
□Applicable □ Not applicable
For specific measures check the 2024 Sustainability Report published issued by the Company on April 25
2025 on CNINFO (www.cninfo.com.cn).
Administrative penalties imposed on environmental issues during the reporting period
□Applicable □ Not applicable
Other environmental information that should be disclosed
Other environmental information that should be disclosed has been disclosed as required.Other environmental protection-related information
The Company and its subsidiaries attach great importance to environmental protection and make major
decisions on environmental protection periodically or irregularly. The Company has established a Health Safety
and Environment (HSE) Department to comprehensively supervise and manage the Company’s HSE issues. Each
subsidiary has a full-time environmental protection department responsible for daily comprehensive management
supervision and inspection. To understand the dynamic situation of pollution the Company has established a strict
monitoring system and entrusted the environmental management and monitoring department to monitor the water
gas sound and slag of the whole plant.The Company shall comply with the disclosure requirements for the chemical industry as set forth in the Self-
Regulatory Guidelines for Listed Companies on Shenzhen Stock Exchange No. 3 — Industry Information Disclosure.Relevant situation of environmental accidents in listed companies
□Applicable □ Not applicable
Ⅱ. Social responsibility information
The Company actively performs its social responsibility. For the full text check the 2024 Sustainability Report
published issued by the Company on April 25 2025 on CNINFO (www.cninfo.com.cn).The Company shall comply with the disclosure requirements for the chemical industry as set forth in the Self-
Regulatory Guidelines for Listed Companies on Shenzhen Stock Exchange No. 3 — Industry Information
Disclosure.
97 / 276 Full Text of 2024 Annual Report
III. Consolidating and expanding the achievements of poverty alleviation and rural
revitalization
The Company actively performs its social responsibility and supports poverty alleviation and rural revitalizati
on. For related contents check the 2024 Sustainability Report published issued by the Company on April 25 2025
on CNINFO (www.cninfo.com.cn).
98 / 276 Full Text of 2024 Annual Report
Section VI Important Matters
I. Fulfillment of Commitments
1. The commitments performed by the actual controllers shareholders related parties acquirers the
Company and other relevant parties to commitments during the reporting period and the commitments not
performed by the end of the reporting period
□Applicable □ Not applicable
Cause of Commitme Commitme Time of Term of
Commitment nt Party nt Type Content of Commitment Commit Commit
Fulfillme
ment ment nt
Share reform
commitment N/A N/A N/A N/A N/A
Commitments
stated in the
Report of
Acquisition or N/A N/A N/A N/A N/A
Equity
Change
Report
Commitments
made in assets N/A N/A N/A N/A N/A
reorganization
Directors Li Shuirong and Li Yongqing and
Supervisor Li Guoqing promised that
during their term of office they would not Term of
Commitment Directors transfer shares they held (including directly commit
made during and Commitmen and indirectly) in the issuer of more than Novemb ment for Commitm
IPO or re- supervisors t made 25% of the total shares held (including er 2 share ents
financing of the during IPO directly and indirectly) by them in the 2010 lock-up honored Company issuer every year. Within half a year after is 36
resignation they would not transfer shares months
directly or indirectly held by them in the
issuer.Equity
incentive N/A N/A N/A N/A N/A
commitment
Rongsheng Holding the controlling
shareholder of the Company signed the
Non-competition Agreement with the
Other Company and promised not to compete
commitments with the Company in the same industry. Li
made to minor Shareholder Commitmen Shuirong the de facto controller and the Novemb Long Commitm
shareholders s before t made largest natural person shareholder of the er 2 ents
of the issuance during IPO 2010
term
Company and other shareholders honored
Company including Li Yongqing Li Guoqing Ni
Xincai Xu Yuejuan and Zhao Guanlong
respectively issued the Letter of
Commitment on Avoiding Horizontal
Competition and promised not to compete
99 / 276 Full Text of 2024 Annual Report
with the company in the same industry.Rongsheng Holdings the controlling During
shareholder of the Company plans to the
Commitmen increase its shareholding in the Company share
Other Controlling t made in within 6 months from January 19 2024 January increase Commitm
commitments shareholder the increase and promises not to actively reduce its 18 2024 period ents
plan shareholding in the Company during the and honored
share increase period and within the statutory
statutory time limit. time limit
Rongsheng Holdings the controlling During
shareholder of the Company plans to the
Commitmen increase its shareholding in the Company share
Other Controlling t made in within 6 months from August 21 2024 and August increase Commitm
commitments shareholder the increase promises not to actively reduce its 21 2024 period ents
plan shareholding in the Company during the and honored
share increase period and within the statutory
statutory time limit. time limit
Whether the commitments are performed on
time Yes
If the commitments have not been fulfilled
after the deadline the specific reasons for the
failure to complete the performance and the N/A
work plan for the next step should be
explained in details
2. Company statement on meeting original profit forecasts for assets or projects and the reasons therefore
where such profit forecasts have been made and the reporting period falls within the profit forecast period
□Applicable □ Not applicable
II. Non-operating Occupation of Funds of the Listed Company by the Controlling
Shareholder and Other Related Parties
□ Applicable □ Not applicable
There is no non-operating occupation of funds of the listed company by the controlling shareholder and other related
parties during the reporting period.III. Illegal External Guarantee
□ Applicable □ Not applicable
There is no illegal external guarantee during the reporting period.IV. Explanation of the Board of Directors on the relevant situation of the latest issue of the
“Non-standard Audit Report”
□ Applicable □ Not applicable
100 / 276 Full Text of 2024 Annual Report
V. Explanation of the Board of Directors the Board of Supervisors and the Independent
Directors (if any) on the “Non-standard Audit Report” for the reporting period issued by the
accounting firm
□ Applicable □ Not applicable
VI. Explanation of Changes in Accounting Policies Accounting Estimates or Correction of
Major Accounting Errors Compared with the Financial Report of the Previous Year
□ Applicable □ Not applicable
During the reporting period there was no change in accounting policies accounting estimates or correction of major
accounting errors.
1. The Company has implemented the provisions of “Classification of Current and Non-current Liabilities” in
the Interpretation of Accounting Standards for Business Enterprises No. 17 since January 1 2024. Changes in this
accounting policy had no impact on the Company’s financial statements.
2. The Company has implemented the provisions of “Disclosure of Supplier Financing Arrangements” in the
Interpretation of Accounting Standards for Business Enterprises No. 17 since January 1 2024.
3. The Company has implemented the provisions of “Accounting Treatment for After-Sale LeasebackTransactions” in the Interpretation of Accounting Standards for Business Enterprises No. 17 since January 1 2024.Changes in this accounting policy had no impact on the Company’s financial statements.
4. The Company has implemented the provisions of “Accounting Treatment for Assurance-Type Warrants NotConstituting Separate Performance Obligations” in the Interpretation of Accounting Standards for Business
Enterprises No. 18 since December 6 2024. Changes in this accounting policy had no impact on the Company’s
financial statements.VII. Explanation of Changes in the Scope of Consolidated Statements Compared with the
Financial Report of the Previous Year
□Applicable □ Not applicable
Company name Acquisition and disposal methods Impact on overall production during the reporting period operation and performance
Taizhou ZPC Sales Co. Ltd. New establishment No significant impact
Zhejiang Rongyi Chemical Fiber Co. Ltd. New establishment No significant impact
Zhoushan ZPC Logistics Co. Ltd. New establishment No significant impact
Zhejiang Zhuosheng Industry & Trade Co. Ltd. Industrial and commercial deregistration No significant impact
VIII. Appointment and Dismissal of Accounting Firm
The accounting firm employed currently
Name of domestic accounting firm Pan-China Certified Public Accountants (Special General Partnership)
Remuneration of domestic accounting firms (RMB 10000) 800
Consecutive audit services year of domestic accounting firm 19
101 / 276 Full Text of 2024 Annual Report
Name of the certified public accountant of a domestic
accounting firm Jia Chuan Xu Haihong
Consecutive audit services year of the certified public
accountant of a domestic accounting firm 5 years 4 years
Whether the accounting firm was reappointed during the period
□ Yes □ No
Engagement of internal control audit accounting firms financial advisers or sponsors
□ Applicable □ Not applicable
IX. Delisting after the disclosure of the Annual Report
□ Applicable □ Not applicable
X. Matters related to bankruptcy and reorganization
□ Applicable □ Not applicable
The Company did not have any matters related to bankruptcy or reorganization during the reporting period.XI. Major litigation and arbitration matters
□ Applicable □ Not applicable
The Company had no major litigation and arbitration during the reporting period.XII. Punishment and rectification
□Applicable □ Not applicable
Designation Type of Disclo
/name Type Cause investigation
Conclusion (if
any) sure Disclosure index punishment Date
Rongsheng For details please
Petrochemic Other Take the refer to CNINFO
al Co. Ltd. Administrativ supervision and management (www.cninfo.com.c
Li Shuirong Director e regulatory n) Announcement
Inaccurate disclosure of measures
measures of
on the Company
Xiang Director performance forecast taken by the
issuing warning May
Jiongjiong China letters and 30
and Relevant
information. record them in 2024 Personnel Receiving
Quan Senior Securities the integrity the Warning Letter
Weiying management Regulatory from Zhejiang Commission files of the securities and Regulatory Bureau
Wang Senior futures markets. (Announcement
Yafang management No.: 2024-038).Explanation of rectification
□Applicable □ Not applicable
After receiving the Warning Letter the Company and relevant personnel attached great importance to the
problems pointed out in the Warning Letter fully learned lessons in strict accordance with the requirements of
Zhejiang Regulatory Bureau continuously strengthened the study of securities laws and regulations further
102 / 276 Full Text of 2024 Annual Report
improved and strictly implement the financial and accounting management system strengthened the management
of information disclosure affairs further raised the standardized operation level of the Company and protected the
interests of the Company and its all shareholders.The administrative supervisory measure will not affect the normal business management and standardized
operation of the Company. The Company will fulfill its information disclosure obligations in a timely manner in
strict accordance with relevant regulatory requirements and relevant laws and regulations and endeavor to do a
good job in every aspect of business management and standardized governance. Please invest in a rational manner
and pay attention to the investment risk.XIII. Integrity conditions of the Company its controlling shareholders and actual controllers
□ Applicable □ Not applicable
103 / 276 Full Text of 2024 Annual Report
XIV. Major Related Transactions
1. Related party transactions related to daily operations
□Applicable □ Not applicable
Type of Content
Pricing Price Amount Proporti Settleme Available
Relati related s of
principle of of related on to Trading Above nt of market
Related onshi party related
s of
related related party similar
limit the
approved approved related price for Disclosurparty party party transacti transacti party similar e Date Disclosure index p transact transact party transa on (RMB on (RMB limit or ion ion transacti
transacti transacti
on ction 10000) amount
10000) not on on
Rongsh Contr Coal and Banker’s http://www.cninfo.com.cn/new/dis
eng olling Purchase of other Market Market 1371747
acceptanc closure/detailstockCode=002493
Holding shareh material price price .51 99.63% 2000000 No e bill spot
Market April 26 &announcementId=1219827987&
s olders goods s exchange
price 2024 orgId=9900015502&announcemen
etc. tTime=2024-04-26
Minor Crude Letter of http://www.cninfo.com.cn/new/dis
Saudi ity Purchas oil fuel e of oil Market Market 1025769 51.88% 1200000 credit Market April 26
closure/detailstockCode=002493
Aramco shareh price price 4.39 0 No spot price 2024 &announcementId=1219827987&
olders goods ethylene exchange orgId=9900015502&announcemenglycol tTime=2024-04-26
Banker’s http://www.cninfo.com.cn/new/dis
Zhejian
g Associ Sales of PTA Market Market 845647.2
acceptanc closure/detailstockCode=002493
ate goods PX price price 3 10.83% 1500000 No e bill spot
Market April 26 &announcementId=1219827987&
Yisheng exchange price 2024 orgId=9900015502&announcemen
etc. tTime=2024-04-26
Total -- -- 1247508 -- 1550000 -- 9.13 0 -- -- -- --
Details of return of large sales N/A
Actual performance during the reporting period where the total amount of daily related party
transactions to occur in the current period is estimated by category (if any) None
Reason for substantial differences between the transaction price and market reference price
(if applicable) N/A
104 / 276 Full Text of 2024 Annual Report
2. Related party transactions arising from the acquisition and sale of assets or equity
□ Applicable □ Not applicable
The Company had no connected transactions related to the acquisition or sales of assets or equity during the
reporting period.
3. Related-party transactions for outward joint investment
□ Applicable □ Not applicable
The Company had no connected transactions related to joint outward investment during the reporting period.
4. Connected transactions on credit and debt
□ Applicable□ Not applicable
The Company had no connected transactions on credit and debt during the reporting period.
5. Transactions with financial companies with associated relationships
□ Applicable □Not applicable
There are no deposits loans credits or other financial operations between the Company and the related finance
companies and the related party.
6. Transactions between the financial companies controlled by the company and related parties
□ Applicable □ Not applicable
There are no deposits loans credits or other financial operations between the finance companies controlled by the
Company and the related party.
7. Other major related party transactions
□ Applicable □ Not applicable
There were no other major connected transactions during the reporting period.XV. Material Contracts and Their Performance
1. Status of trusteeship contracting and leasing
(1) Entrustment
□ Applicable □ Not applicable
The Company had no entrustment during the reporting period.
(2) Contracting
□ Applicable □ Not applicable
The Company had no contracting during the reporting period.
105 / 276 Full Text of 2024 Annual Report
(3) Lease
□ Applicable □ Not applicable
The Company had no leasing during the reporting period.
106 / 276 Full Text of 2024 Annual Report
2. Major guarantee
□Applicable □ Not applicable
Unit：RMB 10000
Guarantees of the Company to its subsidiaries
Date of
Name of disclosure of Counter- If the Whether to
guaranteed announcement Guarantee
Actual Actual
occurrence guarantee Guarantee Collateral (if guarantee Guarantee guarantee provide relating to limit type any) situation period has been guarantee for
party guarantee date amount (if any) performed related party
limit
Shengyuan
Chemical December 17 5432000 September 3680 Joint liability 2024 14 2024 guarantee March 10 2025 No Yes Fiber
Shengyuan
Chemical December 17 2024 5432000
September 3680 Joint liability September 10
14 2024 guarantee 2025 No Yes Fiber
Shengyuan
Chemical December 17 2024 5432000
September 29440 Joint liability
14 2024 guarantee
March 10 2026 No Yes
Fiber
Shengyuan
Chemical December 17 5432000 November 10000 Joint liability November 26 guarantee No Yes
Fiber 2024 27 2024 2025
Shengyuan
Chemical December 17 5432000 December 11 20000 Joint liability December 10 2024 2024 guarantee
Fiber 2025
No Yes
Shengyuan
Chemical December 17 2024 5432000
August 23 50 Joint liability February 22
Fiber 2024
guarantee 2025 No Yes
Shengyuan
Chemical December 17 5432000 September 5 750 Joint liability guarantee 2024 2024 March 4 2025 No Yes Fiber
Shengyuan December 17 5432000 August 23 50 Joint liability August 22 No Yes
107 / 276 Full Text of 2024 Annual Report
Chemical 2024 2024 guarantee 2025
Fiber
Shengyuan
Chemical December 17 5432000 September 5 750 Joint liability September 4 2024 2024 guarantee
Fiber 2025
No Yes
Shengyuan
Chemical December 17 5432000 August 23 9900 Joint liability September 22 2024 2024 guarantee
2025 No Yes Fiber
Shengyuan
Chemical December 17 5432000 September 5 13500 Joint liability 2024 2024 guarantee
October 4 2025 No Yes
Fiber
Shengyuan
Chemical December 17 5432000 January 11 10 Joint liability January 11 2024 2024 guarantee
Fiber 2025
No Yes
Shengyuan
Chemical December 17 5432000 January 11 2480 Joint liability February 11 2024 2024 guarantee 2025 No Yes Fiber
Shengyuan
Chemical December 17 5432000 October 25 125 Joint liability 2024 2024 guarantee
April 25 2025 No Yes
Fiber
Shengyuan
Chemical December 17 October 25 125 Joint liability October 25
Fiber 2024
5432000 2024 guarantee 2025 No Yes
Shengyuan
Chemical December 17 5432000 October 25 2250 Joint liability November 25 2024 2024 guarantee
2025 No Yes Fiber
Shengyuan
Chemical December 17 2024 5432000
March 20 10000 Joint liability guarantee 2024 March 17 2025 No Yes Fiber
Shengyuan
Chemical December 17 5432000 March 21 10000 Joint liability 2024 2024 guarantee March 21 2025 No Yes Fiber
Shengyuan December 17 5432000 April 23 10000 Joint liability April 16 2025 No Yes
108 / 276 Full Text of 2024 Annual Report
Chemical 2024 2024 guarantee
Fiber
Yisheng December 17
Dahua 2024 5432000 May 24 2023
20000 Joint liability guarantee May 22 2025 No Yes
Yisheng December 17
Dahua 2024 5432000 June 15 2023
8000 Joint liability guarantee June 6 2025 No Yes
Yisheng December 17 5432000 January 31 18268.99 Joint liability January 17 Dahua 2024 2024 guarantee 2025 No Yes
Yisheng December 17 February 7 11000 Joint liability January 27
Dahua 2024 5432000 2024 guarantee 2025 No Yes
Yisheng December 17
Dahua 2024 5432000 June 6 2024
25000 Joint liability guarantee June 5 2026 No Yes
Yisheng December 17 2000 Joint liability
Dahua 2024 5432000 June 6 2024 guarantee June 20 2025 No Yes
Yisheng December 17
Dahua 2024 5432000 June 19 2024
18000 Joint liability guarantee June 19 2026 No Yes
Yisheng December 17
Dahua 2024 5432000 June 27 2024
16800 Joint liability guarantee June 19 2025 No Yes
Yisheng December 17
Dahua 2024 5432000 July 19 2024
4400 Joint liability guarantee July 4 2025 No Yes
Yisheng December 17
Dahua 2024 5432000 July 24 2024
8770 Joint liability guarantee July 14 2025 No Yes
Yisheng December 17
Dahua 2024 5432000 July 26 2024
8830 Joint liability guarantee July 16 2025 No Yes
Yisheng December 17 5432000 February 26 21912 Joint liability February 14 Dahua 2024 2024 guarantee 2025 No Yes
Yisheng December 17 23972.4 Joint liability
Dahua 2024 5432000 May 6 2024 guarantee March 21 2025 No Yes
Yisheng December 17 5432000 August 21 11209.25 Joint liability Dahua 2024 2024 guarantee
June 24 2025 No Yes
Yisheng December 17 5432000 December 5 12124.37 Joint liability November 21 No Yes
109 / 276 Full Text of 2024 Annual Report
Dahua 2024 2024 guarantee 2025
Yongsheng December 17
Technology 2024 5432000
December 11 10773 Joint liability December 4
2024 guarantee
2025 No Yes
Yongsheng December 17
Technology 2024 5432000
March 2 5785.71 Joint liability guarantee
December 15
2021 2025 No Yes
Yongsheng December 17 5432000 June 16 2021 1339 Joint liability December 15 Technology 2024 guarantee 2025 No Yes
Yongsheng December 17
Technology 2024 5432000 May 24 2022
4739 Joint liability December 15 guarantee 2026 No Yes
Yongsheng December 17 5432000 October 14 873.81 Joint liability December 15 Technology 2024 2022 guarantee 2026 No Yes
Yongsheng December 17 September 1746 Joint liability December 15
Technology 2024 5432000 26 2023 guarantee 2026 No Yes
Yongsheng December 17 5432000 March 2 5785.71 Joint liability Technology 2024 2021 guarantee
June 15 2025 No Yes
Yongsheng December 17 1339 Joint liability
Technology 2024 5432000 June 16 2021 guarantee June 15 2025 No Yes
Yongsheng December 17
Technology 2024 5432000 May 24 2022
1164.5 Joint liability guarantee June 15 2025 No Yes
Yongsheng December 17 5432000 October 14 214.71 Joint liability Technology 2024 2022 guarantee June 15 2025 No Yes
Yongsheng December 17
Technology 2024 5432000
September 430 Joint liability
26 2023 guarantee June 15 2025 No Yes
Yongsheng December 17
Technology 2024 5432000 May 24 2022
1164.5 Joint liability December 15 guarantee 2025 No Yes
Yongsheng December 17 5432000 October 14 214.71 Joint liability December 15 Technology 2024 2022 guarantee 2025 No Yes
Yongsheng December 17
Technology 2024 5432000
September 430 Joint liability December 15
26 2023 guarantee 2025 No Yes
Yongsheng December 17
Technology 2024 5432000 June 6 2022
174.84 Joint liability guarantee May 15 2025 No Yes
110 / 276 Full Text of 2024 Annual Report
Yongsheng December 17
Technology 2024 5432000 June 15 2022
2233.1 Joint liability guarantee May 15 2025 No Yes
Yongsheng December 17
Technology 2024 5432000 June 15 2022
1173.22 Joint liability November 17 guarantee 2025 No Yes
Yongsheng December 17 August 22 1234.71 Joint liability November 17
Technology 2024 5432000 2022 guarantee 2025 No Yes
Yongsheng December 17 5432000 August 22 134.87 Joint liability guarantee Technology 2024 2022 May 15 2026 No Yes
Yongsheng December 17 September 6 2190.92 Joint liability
Technology 2024 5432000 2022 guarantee May 15 2026 No Yes
Yongsheng December 17
Technology 2024 5432000
October 12 82.15 Joint liability
2022 guarantee
May 15 2026 No Yes
Yongsheng December 17 October 12 2407.94 Joint liability November 16
Technology 2024 5432000 2022 guarantee 2026 No Yes
Yongsheng December 17 5432000 October 12 2407.94 Joint liability Technology 2024 2022 guarantee
May 17 2027 No Yes
Yongsheng December 17 5432000 October 12 1546.8 Joint liability November 15 Technology 2024 2022 guarantee 2027 No Yes
Yongsheng December 17
Technology 2024 5432000
October 24 861.13 Joint liability November 15
2022 guarantee
2027 No Yes
Yongsheng December 17 5432000 October 24 2407.94 Joint liability Technology 2024 2022 guarantee May 15 2028 No Yes
Yongsheng December 17 October 24 2407.94 Joint liability November 15
Technology 2024 5432000 2022 guarantee 2028 No Yes
Yongsheng December 17 5432000 October 24 2407.94 Joint liability Technology 2024 2022 guarantee May 15 2029 No Yes
Yongsheng December 17 October 24 1375.99 Joint liability November 15
Technology 2024 5432000 2022 guarantee 2029 No Yes
Yongsheng December 17
Technology 2024 5432000
November 9 1031.95 Joint liability November 15
2022 guarantee
2029 No Yes
111 / 276 Full Text of 2024 Annual Report
Yongsheng December 17 5432000 November 9 1100.12 Joint liability Technology 2024 2022 guarantee May 15 2030 No Yes
Yongsheng December 17
Technology 2024 5432000
November 1307.81 Joint liability
28 2022 guarantee May 15 2030 No Yes
Yongsheng December 17 5432000 November 1209.35 Joint liability November 15 Technology 2024 28 2022 guarantee
2030 No Yes
Yongsheng December 17
Technology 2024 5432000
December 14 1198.59 Joint liability November 15
2022 guarantee
2030 No Yes
Yongsheng December 17
Technology 2024 5432000
December 14 1424.12 Joint liability guarantee 2022 May 15 2031 No Yes
Yongsheng December 17 January 19 983.82 Joint liability
Technology 2024 5432000 2023 guarantee May 15 2031 No Yes
Yongsheng December 17 5432000 January 19 2407.94 Joint liability November 16 Technology 2024 2023 guarantee
2031 No Yes
Yongsheng December 17 5432000 January 19 810.97 Joint liability Technology 2024 2023 guarantee May 17 2032 No Yes
Yongsheng December 17
Technology 2024 5432000
February 14 1596.97 Joint liability
2023 guarantee
May 17 2032 No Yes
Yongsheng December 17 5432000 February 14 1451.13 Joint liability November 15 Technology 2024 2023 guarantee 2032 No Yes
Yongsheng December 17 April 25 956.8 Joint liability November 15
Technology 2024 5432000 2023 guarantee 2032 No Yes
Yongsheng December 17 April 25 673.13 Joint liability
Technology 2024 5432000 2023 guarantee May 16 2033 No Yes
Yongsheng December 17 1369.58 Joint liability
Technology 2024 5432000 May 17 2023 guarantee May 16 2033 No Yes
Yongsheng December 17 October 31 365.22 Joint liability
Technology 2024 5432000 2023 guarantee May 16 2033 No Yes
Yongsheng December 17
Technology 2024 5432000 May 28 2024
5000 Joint liability guarantee May 28 2025 No Yes
112 / 276 Full Text of 2024 Annual Report
Yongsheng December 17
Technology 2024 5432000 May 30 2024
5000 Joint liability guarantee May 28 2025 No Yes
Zhongjin December 17 5432000 February 1 20000 Joint liability January 24 Petrochemical 2024 2023 guarantee 2025 No Yes
Zhongjin December 17 February 7 6500 Joint liability February 6
Petrochemical 2024 5432000 2023 guarantee 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000 April 1 2024
20000 Joint liability February 7 guarantee 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000
April 22 20000 Joint liability February 21
2024 guarantee 2025 No Yes
Zhongjin December 17 April 22 30000 Joint liability February 21
Petrochemical 2024 5432000 2024 guarantee 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000 May 6 2024
25000 Joint liability guarantee April 24 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000
November 50000 Joint liability November 28
29 2024 guarantee
2025 No Yes
Zhongjin December 17 5432000 May 20 2024 35000 Joint liability Petrochemical 2024 guarantee May 20 2025 No Yes
Zhongjin December 17 17856 Joint liability
Petrochemical 2024 5432000 June 19 2024 guarantee June 3 2025 No Yes
Zhongjin December 17 23000 Joint liability
Petrochemical 2024 5432000 June 26 2024 guarantee June 26 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000 July 5 2024
11564.49 Joint liability guarantee January 5 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000 July 26 2024
19509.59 Joint liability January 26 guarantee 2025 No Yes
Zhongjin December 17 5432000 September 6 38201.38 Joint liability Petrochemical 2024 2024 guarantee March 6 2025 No Yes
Zhongjin December 17 5432000 January 30 20000 Joint liability January 30 Petrochemical 2024 2024 guarantee
2025 No Yes
113 / 276 Full Text of 2024 Annual Report
Zhongjin December 17
Petrochemical 2024 5432000 April 8 2024
48200 Joint liability guarantee April 8 2025 No Yes
Zhongjin December 17 5432000 April 15 3700 Joint liability Petrochemical 2024 2024 guarantee April 15 2025 No Yes
Zhongjin December 17 5432000 April 19 6700 Joint liability Petrochemical 2024 2024 guarantee
April 18 2025 No Yes
Zhongjin December 17 5432000 April 22 12000 Joint liability Petrochemical 2024 2024 guarantee April 22 2025 No Yes
Zhongjin December 17 August 13 53610 Joint liability August 13
Petrochemical 2024 5432000 2024 guarantee 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000
August 21 32300 Joint liability August 21
2024 guarantee
2025 No Yes
Zhongjin December 17 October 16 39000 Joint liability October 16
Petrochemical 2024 5432000 2024 guarantee 2025 No Yes
Zhongjin December 17 5432000 October 31 14390 Joint liability October 31 Petrochemical 2024 2024 guarantee 2025 No Yes
Zhongjin December 17 December 19 30000 Joint liability December 19
Petrochemical 2024 5432000 2024 guarantee 2025 No Yes
Zhongjin December 17 5432000 January 19 500 Joint liability January 16 Petrochemical 2024 2024 guarantee
2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000
January 19 9000 Joint liability February 17
2024 guarantee
2025 No Yes
Zhongjin December 17 November 2000 Joint liability
Petrochemical 2024 5432000 27 2024 guarantee May 21 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000
November 2000 Joint liability November 21
27 2024 guarantee 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000
November 36000 Joint liability December 15
27 2024 guarantee 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000
September 13000 Joint liability September 18
19 2024 guarantee 2025 No Yes
114 / 276 Full Text of 2024 Annual Report
Zhongjin December 17
Petrochemical 2024 5432000
October 12 20000 Joint liability October 11
2024 guarantee 2025 No Yes
Zhongjin December 17 5432000 November 20000 Joint liability November 12 Petrochemical 2024 13 2024 guarantee 2025 No Yes
Zhongjin December 17 5432000 November 12000 Joint liability November 14 Petrochemical 2024 15 2024 guarantee 2025 No Yes
Zhongjin December 17 November 28000 Joint liability November 20
Petrochemical 2024 5432000 21 2024 guarantee 2025 No Yes
Zhongjin December 17 5432000 November 19098.89 Joint liability February 25 Petrochemical 2024 26 2024 guarantee 2025 No Yes
Zhongjin December 17 November 7000 Joint liability November 23
Petrochemical 2024 5432000 26 2024 guarantee 2025 No Yes
Zhongjin December 17
Petrochemical 2024 5432000 June 7 2024
12364.05 Joint liability guarantee June 6 2025 No Yes
Zhongjin December 17 37954.75 Joint liability
Petrochemical 2024 5432000 June 27 2024 guarantee June 20 2025 No Yes
Zhongjin December 17 5432000 November 18368.19 Joint liability November 20 Petrochemical 2024 21 2024 guarantee
2025 No Yes
Zhongjin December 17 September 18150 Joint liability
Petrochemical 2024 5432000 19 2024 guarantee March 3 2025 No Yes
Zhongjin December 17 December 4 39600 Joint liability
Petrochemical 2024 5432000 2024 guarantee May 9 2025 No Yes
Zhongjin December 17 5432000 December 2 10000 Joint liability December 2 Petrochemical 2024 2024 guarantee 2025 No Yes
Zhongjin December 17 5432000 November 100 Joint liability guarantee
February 28
Petrochemical 2024 13 2023 2025 No Yes
ZPC December 17 2024 6260000 July 31 2018
255000 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 6260000 August 10 68214.03 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
115 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 March 18 57375 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 August 3 9388.08 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 August 9 15414.75 Joint liability 2024 2018 guarantee July 30 2030 No Yes
ZPC December 17 August 9 23121.11 Joint liability 2024 6260000 2018 guarantee July 30 2030 No Yes
ZPC December 17 6260000 August 10 4003.76 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 August 10 7706.37 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
ZPC December 17 August 13 2854.47 Joint liability 2024 6260000 2018 guarantee July 30 2030 No Yes
ZPC December 17 6260000 August 16 27120.78 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 August 15 5710.98 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
August 31 25500 Joint liability
2018 guarantee July 30 2030 No Yes
ZPC December 17 6260000 October 23 47077.34 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
October 26 8557.8 Joint liability
2018 guarantee July 30 2030 No Yes
ZPC December 17 6260000 October 30 3996.26 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 October 31 17130.9 Joint liability 2024 2018 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
November 7 5433.67 Joint liability
2018 guarantee July 30 2030 No Yes
116 / 276 Full Text of 2024 Annual Report
ZPC December 17 2024 6260000
November 8 11131.42 Joint liability
2018 guarantee July 30 2030 No Yes
ZPC December 17 6260000 November 8 8281.38 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
August 3 4026.45 Joint liability
2018 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 November 9 13585.38 Joint liability 2024 2018 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 January 1 20818.51 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 January 3 14268.78 Joint liability 2024 6260000 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 January 4 2283.58 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
November 9 5824.2 Joint liability
2018 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 January 4 9989.88 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 January 4 41103.96 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
January 8 5424.87 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 January 9 14253.23 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 January 10 7135.53 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 January 14 3431.79 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
January 15 10281.6 Joint liability
2019 guarantee July 30 2030 No Yes
117 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 January 30 65790 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
January 31 11421.96 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 January 30 1712.68 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 February 1 9406.19 Joint liability guarantee 2024 2019 July 30 2030 No Yes
ZPC December 17 January 4 2286.33 Joint liability 2024 6260000 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
February 1 5995.05 Joint liability
2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 February 1 4852.16 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
February 3 19987.41 Joint liability
2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 February 11 2573.84 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 February 12 3708.72 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 February 11 15232.68 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 February 27 46920 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 March 1 6555.54 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 February 1 2562.75 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 March 7 3994.83 Joint liability 2024 6260000 2019 guarantee July 30 2030 No Yes
118 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 March 7 9989.88 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
March 8 1141.79 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
March 8 3425.05 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 March 12 2570.4 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 March 13 1715.9 Joint liability 2024 6260000 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
March 15 13992.36 Joint liability
2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 March 29 18360 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000 April 8 2019
2850.65 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 6260000 April 10 570.89 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
April 11 1141.99 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 March 7 1708.5 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
April 11 2000.22 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 April 12 4856.73 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 April 12 571.97 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
April 12 3994.83 Joint liability
2019 guarantee July 30 2030 No Yes
119 / 276 Full Text of 2024 Annual Report
ZPC December 17 2024 6260000
April 15 1427.11 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 May 1 2019
6271.47 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
April 11 854.25 Joint liability
2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000 May 7 2019
3196.17 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 17340 Joint liability 2024 6260000 May 7 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 May 7 2019
6279.12 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 6260000 May 9 2019 2568.79 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000 May 10 2019
856.34 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 6260000 May 13 2019 1429.91 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 May 13 2019 1997.77 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 May 16 2019 9135.63 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000 May 30 2019
18474.75 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 June 1 2019
3424.65 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 June 4 2019
9989.74 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 May 7 2019
1366.8 Joint liability guarantee July 30 2030 No Yes
120 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 June 5 2019 5710.98 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000 June 5 2019
7133.98 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 June 6 2019
3425.36 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 June 6 2019
35700 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2859.83 Joint liability 2024 6260000 June 6 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 June 12 2019
17130.9 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 6260000 June 20 2019 286.11 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000 July 1 2019
51000 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 6260000 July 5 2019 3139.63 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 July 8 2019 1141.79 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 July 8 2019 17850 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 July 10 2019 11421.96 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000 July 10 2019
3717.77 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 July 10 2019
2570.4 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 June 5 2019
1424.43 Joint liability guarantee July 30 2030 No Yes
121 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 July 10 2019 2000.22 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000 July 11 2019
854.25 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 July 16 2019
2850.65 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 July 16 2019
5135.7 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000 July 31 2019
31399.68 Joint liability guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
August 2 5708.42 Joint liability
2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
August 7 2859.83 Joint liability guarantee 2019 July 30 2030 No Yes
ZPC December 17 6260000 August 7 6996.18 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 August 7 4278.9 Joint liability guarantee 2024 2019 July 30 2030 No Yes
ZPC December 17 September 2852.94 Joint liability 2024 6260000 23 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
September 2288.88 Joint liability
23 2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
September 44370 Joint liability
29 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 September 8565.45 Joint liability 2024 30 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 August 7 3001.35 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 October 9 2993.7 Joint liability 2024 6260000 2019 guarantee July 30 2030 No Yes
122 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 October 21 8281.38 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 October 21 5415.18 Joint liability 2024 2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
October 29 26520 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
November 7143.06 Joint liability
15 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 October 9 1285.2 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 November 2399.55 Joint liability 2024 18 2019 guarantee July 30 2030 No Yes
ZPC December 17 November 1025.1 Joint liability 2024 6260000 19 2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 November 74970 Joint liability 2024 21 2019 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 December 18 2373.54 Joint liability 2024 2019 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
December 19 3994.83 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
December 24 4286.55 Joint liability
2019 guarantee July 30 2030 No Yes
ZPC December 17 6260000 January 16 5424.87 Joint liability 2024 2020 guarantee July 30 2030 No Yes
ZPC December 17 6260000 January 16 3140.58 Joint liability 2024 2020 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 January 16 1740.12 Joint liability 2024 2020 guarantee July 30 2030 No Yes
ZPC December 17 2024 6260000
January 16 8281.38 Joint liability
2020 guarantee July 30 2030 No Yes
123 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 January 16 1684.53 Joint liability 2024 2020 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 February 14 1994.56 Joint liability 2024 2020 guarantee
July 30 2030 No Yes
ZPC December 17 February 18 577.83 Joint liability 2024 6260000 2020 guarantee July 30 2030 No Yes
ZPC December 17 6260000 March 16 3708.72 Joint liability 2024 2020 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 March 19 5710.98 Joint liability 2024 2020 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 March 31 10200 Joint liability 2024 2020 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 April 1 2020 16575 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 2024 6260000
April 17 1424.43 Joint liability
2020 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 April 17 2000.22 Joint liability 2024 2020 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 May 13 2020 2040 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 June 3 2020 3424.65 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 June 5 2020 3424.65 Joint liability 2024 guarantee
July 30 2030 No Yes
ZPC December 17 6260000 July 4 2023 16702.37 Joint liability 2024 guarantee
March 15 2027 No Yes
ZPC December 17 6260000 January 20 74520 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 6260000 January 20 21804 Joint liability November 15 2024 2021 guarantee
2032 No Yes
124 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 January 20 82800 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 6260000 January 20 276000 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 6260000 January 20 120888 Joint liability guarantee
November 15
2024 2021 2032 No Yes
ZPC December 17 6260000 January 20 23956.8 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 January 20 8280 Joint liability November 15 2024 6260000 2021 guarantee 2032 No Yes
ZPC December 17 2024 6260000
January 21 31464 Joint liability November 15
2021 guarantee
2032 No Yes
ZPC December 17 6260000 January 21 55200 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 2024 6260000
January 21 55200 Joint liability November 15
2021 guarantee
2032 No Yes
ZPC December 17 6260000 January 21 11040 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 6260000 January 22 31464 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 6260000 February 4 52440 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 6260000 February 5 41400 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 6260000 February 5 38640 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 6260000 February 5 16560 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 2024 6260000
February 5 55200 Joint liability November 15
2021 guarantee 2032 No Yes
125 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 February 5 102120 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 6260000 February 5 62928 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 2024 6260000
February 7 31464 Joint liability November 15
2021 guarantee
2032 No Yes
ZPC December 17 6260000 March 18 11592 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 6260000 March 18 19673.28 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 March 19 27600 Joint liability November 15 2024 6260000 2021 guarantee 2032 No Yes
ZPC December 17 6260000 March 19 33120 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 2024 6260000
March 22 55200 Joint liability November 15
2021 guarantee
2032 No Yes
ZPC December 17 6260000 March 22 55200 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 6260000 March 25 27600 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 2024 6260000
March 26 138000 Joint liability November 15
2021 guarantee 2032 No Yes
ZPC December 17 6260000 March 26 44160 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 6260000 April 28 16560 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 6260000 April 28 71760 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 2024 6260000
April 28 34224 Joint liability November 15
2021 guarantee 2032 No Yes
126 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 April 28 27600 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 2024 6260000
April 28 17112 Joint liability November 15
2021 guarantee 2032 No Yes
ZPC December 17 April 29 44160 Joint liability November 15 2024 6260000 2021 guarantee 2032 No Yes
ZPC December 17 6260000 April 30 2760 Joint liability November 15 2024 2021 guarantee
2032 No Yes
ZPC December 17 6260000 April 30 2760 Joint liability November 15 2024 2021 guarantee 2032 No Yes
ZPC December 17 55200 Joint liability November 15 2024 6260000 June 29 2021 guarantee 2032 No Yes
ZPC December 17 2024 6260000 July 5 2021
182160 Joint liability November 15 guarantee 2032 No Yes
ZPC December 17 2024 6260000 July 5 2021
27600 Joint liability November 15 guarantee 2032 No Yes
ZPC December 17 6260000 July 6 2021 22080 Joint liability November 15 2024 guarantee
2032 No Yes
ZPC December 17 2024 6260000 July 6 2021
38640 Joint liability November 15 guarantee 2032 No Yes
ZPC December 17 2024 6260000 July 6 2021
80040 Joint liability November 15 guarantee 2032 No Yes
ZPC December 17 2024 6260000 July 6 2021
80040 Joint liability November 15 guarantee 2032 No Yes
ZPC December 17 2024 6260000 July 6 2021
82800 Joint liability November 15 guarantee 2032 No Yes
ZPC December 17 2024 6260000 July 6 2021
165600 Joint liability November 15 guarantee 2032 No Yes
ZPC December 17 2024 6260000 July 6 2021
22080 Joint liability November 15 guarantee 2032 No Yes
127 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 September 55729.92 Joint liability November 15 2024 15 2021 guarantee
2032 No Yes
ZPC December 17 6260000 September 22080 Joint liability November 15 2024 17 2021 guarantee 2032 No Yes
ZPC December 17 6260000 September 21528 Joint liability November 15 2024 17 2021 guarantee
2032 No Yes
ZPC December 17 6260000 September 44160 Joint liability November 15 2024 17 2021 guarantee
2032 No Yes
ZPC December 17 2024 6260000
September 113160 Joint liability November 15
17 2021 guarantee 2032 No Yes
ZPC December 17 6260000 September 18216 Joint liability November 15 2024 22 2021 guarantee
2032 No Yes
ZPC December 17 2024 6260000 June 13 2022
8832 Joint liability November 15 guarantee 2032 No Yes
ZPC December 17 187.68 Joint liability November 15 2024 6260000 July 11 2022 guarantee 2032 No Yes
ZPC December 17 6260000 August 2 121.44 Joint liability November 15 2024 2022 guarantee
2032 No Yes
ZPC December 17 6260000 August 4 209.76 Joint liability November 15 2024 2022 guarantee
2032 No Yes
ZPC December 17 6260000 August 9 66.24 Joint liability November 15 2024 2022 guarantee 2032 No Yes
ZPC December 17 2024 6260000
August 10 8.28 Joint liability November 15
2022 guarantee
2032 No Yes
ZPC December 17 6260000 September 5 284.28 Joint liability November 15 2024 2022 guarantee
2032 No Yes
ZPC December 17 6260000 October 10 226.32 Joint liability November 15 2024 2022 guarantee 2032 No Yes
ZPC December 17 6260000 November 242.88 Joint liability November 15 2024 12022 guarantee
2032 No Yes
128 / 276 Full Text of 2024 Annual Report
ZPC December 17 6260000 December 16 38.64 Joint liability November 15 2024 2022 guarantee 2032 No Yes
ZPC December 17 6260000 December 27 4416 Joint liability November 15 2024 2022 guarantee
2032 No Yes
ZPC December 17 6260000 November 2 9.26 Joint liability 2024 2021 guarantee January 12025 No Yes
ZPC December 17 6260000 November 0.39 Joint liability 2024 18 2021 guarantee
January 12025 No Yes
Total limits of guarantees to Total balance of guarantees
subsidiaries approved at the end 11692000 actually provided to
of the reporting period (B3) subsidiaries at the end of the
5802254.25
reporting period (B4)
Guarantees of a subsidiary to its subsidiaries
Date of
Name of disclosure of Actual Actual Counter- If the Whether to
guarantee announcement Guarantee occurrence guarantee Guarantee Collateral (if guarantee Guarantee guarantee provide
object relating to limit date amount type any) situation period has been guarantee for guarantee (if any) performed related party
limit
Yisheng December 17 Joint liability
Dahua 2024 209000
October 14 15.9 guarantee April 142025 No Yes 2024
Yisheng December 17 October 14 Joint liability 50.71 April 142025. No Yes
Dahua 2024 209000 2024 guarantee
Yisheng December 17 October 14 Joint liability 14.93
Dahua 2024 209000 2024 guarantee
April 142025 No Yes
Yisheng December 17 Joint liability
Dahua 2024 209000
November 24 guarantee May 122025. No Yes 12 2024
Yisheng December 17 November Joint liability 209000 76.74 guarantee May 12 2025 No Yes Dahua 2024 12 2024
Yisheng December 17 December 27 Joint liability 209000 24.86 guarantee June 27 2025 No Yes Dahua 2024 2024
Yisheng December 17 209000 December 27 31.63 Joint liability June 27 2025 No Yes
129 / 276 Full Text of 2024 Annual Report
Dahua 2024 2024 guarantee
Yisheng December 17 Joint liability
Dahua 2024 209000
December 20 2700
2024 guarantee
June 17 2025 No Yes
Yisheng December 17 209000 September
Joint liability
16000
Dahua 2024 26 2024 guarantee
March 24 2025 No Yes
Yisheng December 17 209000 December 4
Joint liability
13500 December 3
Dahua 2024 2024 guarantee
2025 No Yes
Yisheng December 17 December 25 Joint liability 209000 997.5 guarantee June 24 2025 No Yes Dahua 2024 2024
Total limits of guarantees to Total balance of guarantees
subsidiaries approved at the end 209000 actually provided to 33436.28
of the reporting period (C3) subsidiaries at the end of the reporting period (C4)
Total amount of guarantees of the Company (Including the above three mentioned guarantees)
Total limits of guarantees Total balance of guarantees
approved at the end of the 11901000 actually provided at the end of
reporting period (A3+B3+C3) the reporting period
5835690.53
(A4+B4+C4)
Proportion of total amount of guarantees (i.e. A4+B4+C4) in net
assets of the Company 133.06%
Description of the specific situation when using composite guarantee
130 / 276 Full Text of 2024 Annual Report
3. Situation of others entrusted for cash asset management
(1) Entrusted asset management
□ Applicable □ Not applicable
The Company had no entrusted asset management during the reporting period.
(2) Entrusted loans
□ Applicable □ Not applicable
The Company had no entrusted loans during the reporting period.
4. Other major contracts
□ Applicable □ Not applicable
No other major contracts of the Company during the reporting period.XVI. Explanation of other major matters
□ Applicable □ Not applicable
No other important events to be described during the reporting period.XVII. Major Events of Subsidiaries
□Applicable □ Not applicable
Ningbo Zhongjin Petrochemical Co. Ltd. a wholly-owned subsidiary of the Company applied to Ningbo
Branch of China Pacific Property Insurance Co. Ltd. for a tariff guarantee insurance coverage of not more than
RMB 585 million for a guarantee period from March 1 2025 to March 1 2026 and the Company will provide joint
liability guarantee for it which is subject to the letter of guarantee signed by both parties.
131 / 276 Full Text of 2024 Annual Report
Section VII Changes in Shares and Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before the change Increase or
decrease (+ -)
After this change
Number Ratio Subtotal Number Ratio
I. Restricted shares 627243750 6.19% 627243750 6.19%
1. State-owned shares
2. Shares held by state-owned
legal persons
3. Shares held by other
domestic capital 627243750 6.19% 627243750 6.19%
Including: Shares held by
domestic legal persons
Shares held by domestic
natural persons 627243750 6.19% 627243750 6.19%
4. Shares held by foreign
investors
Including: Shares held by
foreign legal persons
Shares held by foreign
natural persons
II. Shares not subject to sales
restrictions 9498281250 93.81% 9498281250 93.81%
1. RMB ordinary shares 9498281250 93.81% 9498281250 93.81%
2. Domestically-listed foreign
shares
3. Overseas-listed foreign
shares
4. Others
III. Total shares 10125525000 100.00% 10125525000 100.00%
Causes for change in shares
□ Applicable □ Not applicable
Approval of changes in shares
□ Applicable □ Not applicable
Transfer of share changes
□ Applicable □ Not applicable
Influence of share changes on the basic EPS(earnings per share) diluted EPS net assets per share attributable to
common shareholders of the company and other financial indicators in the most recent year and the most recent
period
□ Applicable □ Not applicable
132 / 276 Full Text of 2024 Annual Report
Other information the company deems necessary or required by the securities regulatory authorities to disclose
□ Applicable □ Not applicable
2. Changes in restricted shares
□ Applicable □ Not applicable
II. Securities issuance and listing
1. Issuance of securities (excluding preferred shares) during the reporting period
□ Applicable □ Not applicable
2. Explanation of changes in the total number of shares and shareholder structure of the Company and
changes in the structure of the Company’s assets and liabilities
□ Applicable □ Not applicable
3. Existing internal employee shares
□ Applicable □ Not applicable
133 / 276 Full Text of 2024 Annual Report
III. Shareholders and actual controllers
1. Number and shareholding of the company’s shareholders
Unit: share
Total
number of
common Total number of preferred
Total number of shareholders
common at the end of
shareholders Total number of preferred
the last with voting shareholders whose voting rights were shareholders at the 89709 month before 87976 rights restored at 0 restored at the end of last month before 0 end of the reporting the the end of the the disclosure date of annual report (if period disclosure reporting period any) (see Note 8)
date of the (if any) (see Note
annual 8)
report
Shareholdings of shareholders holding over 5% of shares or the top 10 shareholders (excluding shares lent through refinancing)
Number of Increase or Number of Number of Pledge marking or freezing
Name of Nature of Shareholding shares held at decrease during shares held non-
shareholders shareholders ratio the end of the the reporting with limited sales restricted Share status Number report period period conditions shares held
Zhejiang Rongsheng Domestic non-
Holding Group Co. state-owned legal 53.16% 5382659734 172422254 0 5382659734 Not applicable 0
Ltd. person
Aramco Overseas Overseas legal 10.00% 1012552501 0 0 1012552501
Company B.V. person Not applicable 0
Li Shuirong Domestic natural 6.35% 643275000 0 482456250 160818750 person Not applicable 0
Hong Kong Securities
Clearing Company Overseas legal 1.74% 175884129 29093618 0 175884129 person Not applicable 0 Limited
134 / 276 Full Text of 2024 Annual Report
Li Guoqing Domestic natural 0.95% 96525000 0 72393750 24131250 person Not applicable 0
Xu Yuejuan Domestic natural 0.95% 96525000 0 0 96525000 person Not applicable 0
Li Yongqing Domestic natural 0.95% 96525000 0 72393750 24131250 person Not applicable 0
Horizon Asset -
Huaneng
Trust ? Jiayue No. 7
Single Fund Trust - Other 0.54% 55148287 0 0 55148287 Not applicable 0
Horizon Asset Huixin
No. 43 Single Asset
Management Plan
Industrial and
Commercial Bank of
China Limited –
Huatai-PineBridge Other 0.52% 52504751 30021950 0 52504751 CSI 300 Exchange Not applicable 0
Traded Open-End
Index Securities
Investment Fund
Huaneng Guicheng
Trust Co. Ltd. -
Huaneng Other 0.49% 50078500 0 0 50078500 Trust ? Rongyue Not applicable 0
Weicheng collective
funds trust plan
The situation (if any) that strategic
investors or general legal persons become
the top 10 shareholders due to the Not applicable
placement of new shares (see Note 3)
Among the top 10 shareholders Zhejiang Rongsheng Holding Group Co. Ltd. is the controlling shareholder of the Company Li Yongqing and
Explanation of the relationship or concerted Li Guoqing are nephews of Li Shuirong Chairman of the Board of Directors of Zhejiang Rongsheng Holding Group Co. Ltd. Xu Yuejuan is
action among the above shareholders sister-in-law of Li Shuirong forming associated relationships. In addition to the above associated relationships the Company has no knowledge
of whether other shareholders are related to each other or persons acting in concert.
135 / 276 Full Text of 2024 Annual Report
Explanation of the above shareholders on
delegating/receiving/waiving voting rights Not applicable
Special explanation on the existence of
repurchase accounts among the top 10 Among the top 10 shareholders Rongsheng Petrochemical Co. Ltd. repurchased 553232858 shares in the special securities account accounting
shareholders (if any) (see Note 10) for 5.46% of the Company’s total share capital.Shareholding of top 10 shareholders not subject to sales restrictions (excluding shares lent through refinancing and executive lock-in shares)
Name of shareholders Number of shares not subject to sales restrictions held
Class of shares
at the end of the reporting period Class of shares Number
Zhejiang Rongsheng Holding Group Co. Ltd. 5382659734 RMB ordinary shares 5382659734
Aramco Overseas Company B.V. 1012552501 RMB ordinary shares 1012552501
Hong Kong Securities Clearing Company Limited 175884129 RMB ordinary shares 175884129
Li Shuirong 160818750 RMB ordinary shares 160818750
Xu Yuejuan 96525000 RMB ordinary shares 96525000
Horizon Asset - Huaneng Trust ? Jiayue No. 7 Single Fund Trust - 55148287
Horizon Asset Huixin No. 43 Single Asset Management Plan RMB ordinary shares
55148287
Industrial and Commercial Bank of China Limited – Huatai-
PineBridge CSI 300 Exchange Traded Open-End Index Securities 52504751 RMB ordinary shares 52504751
Investment Fund
Huaneng Guicheng Trust Co. Ltd. - Huaneng Trust ? Rongyue 50078500
Weicheng collective funds trust plan RMB ordinary shares
50078500
Dai Deming 48000000 RMB ordinary shares 48000000
Ni Xincai 47925000 RMB ordinary shares 47925000
Explanation of the relationship or concerted action among the top Among the top 10 shareholders Zhejiang Rongsheng Holding Group Co. Ltd. is the controlling shareholder of the
10 shareholders of outstanding shares not subject to sales Company Xu Yuejuan is the sister-in-law of Li Shuirong Chairman of the Board of Directors of Zhejiang Rongsheng
restrictions and among the top 10 shareholders of outstanding Holding Group Co. Ltd. and Ni Xincai is the brother-in-law of Li Shuirong forming associated relationships. In addition
shares not subject to sales restrictions and the top 10 shareholders to the above associated relationships the Company has no knowledge of whether other shareholders are related to each other or act in concert.Explanation of the top 10 shareholders’ participation in securities Zhejiang Rongsheng Holding Group Co. Ltd. holds 5342659734 shares through an ordinary account and 40000000
margin trading (if any) (see Note 4) shares through a credit account.
136 / 276 Full Text of 2024 Annual Report
Participation of shareholders holding more than 5% shares top 10 shareholders and top 10 shareholders of
outstanding shares not subject to sales restrictions in lending shares by refinancing business
□ Applicable □ Not applicable
Changes in top 10 shareholders and top 10 shareholders of outstanding shares not subject to sales restrictions due
to lending/returning shares by refinancing business
□ Applicable □ Not applicable
Whether any of the top 10 shareholders of ordinary share and the top 10 shareholders of ordinary share not subject
to sales restrictions of the Company have any agreed repurchase trading during the reporting period
□ Yes □ No
The top 10 shareholders of ordinary share and the top 10 shareholders of ordinary share not subject to sales
restrictions did not conduct the agreed repurchase transaction during the reporting period
2. Controlling shareholders of the Company
Nature of controlling shareholder: natural person holding
Type of controlling shareholder: legal person
Legal
Name of controlling representat Date of Organiza
shareholder ive/person- establis Main business
in-charge hment
tion code
Industrial investment enterprise management consulting
indoor and outdoor building decoration sales of chemical
raw materials and products (excluding dangerous
chemicals and easily made drugs) precious metals
(excluding those under special control) gold products
coal (no storage) metal materials and products steel
Septemb 91330000 building materials light textile raw materials and products Zhejiang Rongsheng Li Shuirong er 13 79338631 fuel oil (excluding finished oil) photovoltaic products Holding Group Co. Ltd. 2006 XM cement and products wood and products hardware and electrical appliances and daily necessities computer
software development information consulting services
and import and export business. (Except for projects
prohibited or restricted by national laws and regulations).
(Business activities subject to the approval shall be carried
out upon approval by relevant departments according to
law.)
Equity of other domestic
and overseas listed
companies in which
controlling shareholders Zhejiang Rongsheng Holding Group Co. Ltd. has held 53.16% of shares of the Company and
have controlled and held 29.08% of shares of Ningbo United Group Co. Ltd. respectively as their de facto controller.shares during the reporting
period
Change of controlling shareholder during the reporting period
□ Applicable □ Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.
3. Actual controllers and persons acting in concert with the Company
Nature of actual controller: domestic natural person
137 / 276 Full Text of 2024 Annual Report
Type of actual controller: natural person
Name of the actual Relationship with actual
controller controller Nationality
Obtaining the right of residence in
other countries or regions or not
Li Shuirong Same person China No
Main occupation and Chairman of the Board of Directors of Zhejiang Rongsheng Holding Group Co. Ltd. Chairman of
position Ningbo United Group Co. Ltd. and Chairman of the Company.Domestic and foreign As of the end of the reporting period Mr. Li has held 63.523% of the shares of Zhejiang Rongsheng
listed companies under Holding Group Co. Ltd. as its actual controller. Zhejiang Rongsheng Holding Group Co. Ltd. has
his control in the past 10 held 53.16% of shares of the Company and 29.08% of shares of Ningbo United Group Co. Ltd.years respectively as their de facto controller.Changes in actual controller during the reporting period
□ Applicable □ Not applicable
There was no change in the actual controller of the Company during the reporting period.Block diagram for the property rights and control relations between the Company and its actual controller
Li Shuirong
63.523%
Zhejiang Rongsheng Holding 6.35%
Group Co. Ltd.
53.16%
Rongsheng Petrochemical
Co. Ltd.Block diagram for the property rights and control relations between the Company and its actual controller
□ Applicable □ Not applicable
4. The cumulative number of shares pledged by the controlling shareholder or the first largest shareholder
of the Company and persons acting in concert with the Company reaches 80% of the number of shares held.□ Applicable □ Not applicable
5. Other legal shareholders holding more than 10 % of the shares
□Applicable □ Not applicable
Name of Legal
corporate representative/pers Date of establishment Registered capital
Main business or management
shareholder on-in-charge activities
Service providers internal banks and
Aramco Overseas Mazin Mohammed November 4
Company B.V. M Dabbagh 1948 EUR 17907127251
holding companies are mainly
responsible for Saudi Aramco’s
procurement and other services.
138 / 276 Full Text of 2024 Annual Report
6. Restricted reduction of shares by controlling shareholders actual controllers restructuring parties and
other committed subjects
□ Applicable □ Not applicable
IV. Specific implementation of share repurchase during the reporting period
Implementation progress of share repurchase
□Applicable □ Not applicable
Proportion
of the
number of
Disclos shares
ure Number of Proportio
Proposed Number of repurchased
time of shares to be n to total
repurchase Proposed
amount repurchase Repurchase shares to the
the repurchased share (RMB period purpose repurchased underlying
scheme (shares) capital 10000) (shares) shares involved in
the equity
incentive
plan (if any)
RMB 1 billion Within 12 45454500 months from the Convertible
shares - (inclusive) corporate bonds March 90909100 0.45%- and not more
date of approval
of this issued by listed 16 2022 shares (all 0.90% than RMB 2
1360827460.00%
billion repurchase plan
companies for
inclusive) by the board of conversion into (inclusive) directors stocks
Convertible
RMB 1 billion Within 12 corporate bonds 50 million (inclusive) months from the or employee
August shares-100 0.4938%- and not more date of approval stock ownership
5 2022 million shares 0.9876% than RMB 2 of this plans issued by 147862706 0.00% (both billion repurchase plan listed inclusive) (inclusive) by the board of companies for directors conversion into
stocks
Convertible
Within 12 corporate bonds
83333333 RMB 1.5 months from the or employee
August shares - 0.8230%- billion date of approval stock ownership
22 2023 166666667 1.6460% (inclusive) - of this plans issued by 269287406 0.00% shares (both RMB 3 billion repurchase plan listed
inclusive) (inclusive) by the board of companies for
directors conversion into
stocks
Implementation progress of reducing repurchased shares by centralized competitive bidding
□ Applicable □ Not applicable
139 / 276 Full Text of 2024 Annual Report
Section VIII Preferred Shares
□Applicable □Not applicable
The Company had no preferred shares during the reporting period.Section IX Bonds
□ Applicable □ Not applicable
140 / 276 Full Text of 2024 Annual Report
Section X Financial Reports
I. Audit Report
Type of audit opinions Standard unqualified opinion
Signing date of audit report April 24 2025
Name of auditor Pan-China Certified Public Accountants (Special General Partnership)
Reference No. of audit report 2025 No. (7758)
Name of certified public accountants Jia Chuan Xu Haihong
Text of Audit Report
I. Audit Opinion
We have audited the financial statements of Rongsheng Petrochemical Co. Ltd. (the “Company”) which
comprise the consolidated and parent company balance sheets as at December 31 2024 the consolidated and parent
company income statements consolidated and parent company cash flow statements and consolidated and parent
company statements of changes in equity for the year then ended as well as notes to financial statements.In our opinion the accompanying financial statements present fairly in all material respects the financial
position of the Company as at December 31 2024 and its financial performance and its cash flows for the year then
ended in accordance with China 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 Certified Public Accountant’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the China Code of Ethics
for Certified Public Accountants and we have fulfilled other ethical responsibilities. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole and in forming our opinion thereon and we do not express a separate opinion on
these matters.(I) Revenue recognition
1. Key audit matters
See Notes V 25 and VII 40 to the financial statements for relevant information disclosure.The Company is mainly engaged in sales of refinery products chemical products PTA polyester chips
polyester yarns polyester films etc. In 2024 the operating revenue amounted to 326475.16 million yuan.According to the sales contract entered into between the Company and its customers revenue from sales of goods
is recognized when the customer has obtained the control over related goods.As operating revenue is one of the key performance indicators of the Company there might be inherent risks
that the Company’s management (the “Management”) adopts inappropriate revenue recognition to achieve specific
goals or expectations we have identified revenue recognition as a key audit matter.
2. Responsive audit procedures
141 / 276 Full Text of 2024 Annual Report
Our main audit procedures for revenue recognition are as follows:
(1) We obtained understandings of key internal controls related to revenue recognition assessed the design of
these controls determined whether they had been executed and tested the effectiveness of the operation;
(2) We checked sales contracts obtained understandings of main contractual terms or conditions confirmed
the transaction essence of the related businesses in combination with their background and assessed whether the
revenue recognition method was appropriate;
(3) We performed analysis procedure on operating revenue and gross margin by month product customer
etc. so as to identify whether there are significant or abnormal fluctuations and find out the reason;
(4) For revenue from domestic sales we selected items to check supporting documents related to revenue
recognition including sales contracts orders sales invoices outbound delivery orders logistics records delivery
receipts etc.; for revenue from overseas sales we obtained information from Electron Port to check with accounting
records and selected items to check supporting documents including sales contracts bills of clearance waybills
sales invoices delivery and shipping records etc.;
(5) We selected items to perform confirmation procedures on sales amount in combination with confirmation
procedure of accounts receivable;
(6) We performed cut-off tests to check whether the revenue was recognized in the appropriate period;
(7) We obtained sales return records subsequent to the balance sheet date and checked whether there was
revenue not eligible for recognition at the balance sheet date; and
(8) We checked whether information related to operating revenue had been presented appropriately in the
financial statements.(II) Measurement of fixed assets and construction in progress
1. Key audit matters
See Notes V 16 V 17 VII 11 and V 12 to the financial statements for details of relevant information
disclosure.As of December 31 2024 the carrying amount of fixed assets of the Company amounted to 232497.11 million
yuan which mainly refer to machinery used for production of refining-chemical products etc. and corresponding
plants. Such assets are accounted for as fixed assets when they reach the designed usable conditions with
depreciation made using the straight-line method over their estimated useful lives.As of December 31 2024 the carrying amount of construction in progress of the Company amounted to
44036.13 million yuan which mainly refers to 1.40 million tons of ethylene as well as downstream chemical plant
installations high performance resin project etc. Such construction in progress is measured at actual cost which
include construction costs installation costs borrowing costs eligible for capitalization and other necessary
expenditures incurred to bring the construction in progress to its designed usable conditions including expenditures
on engineering design supervision cost consultancy etc.The judgments made by the Management would have an impact on the carrying amount of fixed assets and
construction in progress as well as deprecation policy for fixed assets which includes: determination of
expenditures eligible for capitalization time point of transferring the construction in progress into fixed assets and
starting deprecation estimation of the economic useful life and the residual value of corresponding fixed assets.As the assessment of carrying amount of fixed assets and construction in progress involves significant
judgment of the Management and may have significant impact on the consolidated financial statements we have
identified measurement and recognition of fixed assets and construction in progress as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for measurement of fixed assets and construction in progress are as follows:
(1) We obtained understandings of key internal controls related to measurement of fixed assets and construction
142 / 276 Full Text of 2024 Annual Report
in progress assessed the design of these controls determined whether they had been executed and tested the
effectiveness of the operation;
(2) We selected items to check newly increased construction in progress confirmed whether they were eligible
for capitalization spot checked construction and installation costs with significant amount increased in the current
period checked related construction contracts and cross checked the actual amount paid with invoices and payment
vouchers;
(3) We obtained loan contracts and reviewed the accuracy and completeness of recognition of capitalized
interest in combination with the inputs into construction in progress;
(4) We conducted on-site observation on engineering construction to obtain an understanding of and assess the
progress of engineering so as to confirm whether there are significant differences between the observation results
and the Company’s accounting records;
(5) We confirmed the time point of transferring construction in progress to fixed assets checked the accuracy
of the time point in combination with on-site observation and fixed assets acceptance reports;
(6) We assessed the reasonableness of depreciation method of fixed assets to further review the reasonableness
of accrued depreciations; and
(7) We checked whether information related to fixed assets and construction in progress had been presented
appropriately in the financial statements.IV. Other Information
The Management is responsible for the other information. The other information comprises the information
included in the Company’s 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 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 the other
information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The Management is responsible for preparing and presenting fairly the financial statements in accordance with
China Accounting Standards for Business Enterprises as well as designing implementing and maintaining internal
control relevant to the preparation of financial statements that are free from material misstatement whether due to
fraud or error.In preparing the financial statements the Management is responsible for assessing the Company’s ability to
continue as a going concern disclosing as applicable matters related to going concern and using the going concern
basis of accounting unless the Management either intends to liquidate the Company or to cease operations or has
no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 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
China Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise
143 / 276 Full Text of 2024 Annual Report
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.We exercise professional judgment and maintain professional skepticism throughout the audit performed in
accordance with China Standards on Auditing. We also:
(I) 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.(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the Management.(IV) 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 we are required to draw attention in our auditor’s report to the related disclosures in the 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.(V) Evaluate the overall presentation structure and content of the financial statements and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities 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 sole responsibility for our audit opinion.We communicate with those charged with governance regarding the planned audit scope time schedule and
significant audit findings including any deficiencies in internal control of concern 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.II. Financial Statements
The amounts in the financial statement notes are presented in RMB.
1. Consolidated Balance Sheet
Prepared by: Rongsheng Petrochemical Co. Ltd.December 31 2024
144 / 276 Full Text of 2024 Annual Report
Unit: RMB
Items December 31 2024 January 1 2024
Current assets:
Cash and bank balances 14833384920.45 13070255466.02
Settlement funds
Loans to other banks
Held-for-trading financial assets
Derivative financial assets 475766685.17 310087429.45
Notes receivable
Accounts receivable 6821971706.36 4737733703.66
Receivables financing 103225654.46 175036242.93
Advances paid 1354519708.48 1493312465.86
Premium receivables
Reinsurance accounts receivables
Reinsurance reserves receivable
Other receivables 4345964007.66 4510228597.49
Including: Interest receivables
Dividends receivable
Financial assets under reverse repo
Inventories 44566934616.59 61733657342.07
including: data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 5801152355.65 5297128974.31
Total current assets 78302919654.82 91327440221.79
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 9516636321.17 9183711444.96
Other equity instrument investments
Other non-current financial assets
Investment property 10124128.60 10395574.60
Fixed assets 232497113015.70 219699679397.52
Construction in progress 44036132096.28 41820671070.59
Productive biological assets
Oil & gas assets
Right-of-use assets 176237821.55 200102141.16
Intangible assets 8142781094.80 7128930412.44
145 / 276 Full Text of 2024 Annual Report
including: data resources
Development expenditures
including: data resources
Goodwill
Long-term prepayments 45701.13
Deferred tax assets 1237176277.28 690808878.08
Other non-current assets 3926823773.78 4856655469.41
Total non-current assets 299543024529.16 283591000089.89
Total assets 377845944183.98 374918440311.68
Current liabilities:
Short-term borrowings 44090969803.23 44810936767.94
Central bank loans
Loans from other banks
Held-for-trading financial liabilities 1269256561.53 544366956.25
Derivative financial liabilities 34655378.23 78931785.08
Notes payable 3204293497.95 4195471402.63
Accounts payable 59032829819.11 49744126901.38
Advances received
Contract liabilities 5995580462.05 4421732432.83
Financial liabilities under repo
Absorbing deposit and interbank deposit
Deposits for agency security transaction
Deposits for agency security underwriting
Employee benefits payable 996809278.49 1032220776.56
Taxes and rates payable 1277862468.64 476781167.70
Other payables 6588756879.48 16919133504.47
Including: Interests payable
Dividends payable 228000000.00
Handling fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one year 38322495216.94 30286684174.81
Other current liabilities 742351889.84 551990844.96
Total current liabilities 161555861255.49 153062376714.61
Non-current liabilities:
Insurance policy reserves
Long-term borrowings 119518340862.41 125179583821.18
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 171624458.34 193002312.38
146 / 276 Full Text of 2024 Annual Report
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 198629966.29 195581593.25
Deferred tax liabilities 1577357341.78 1619074228.97
Other non-current liabilities
Total non-current liabilities 121465952628.82 127187241955.78
Total liabilities 283021813884.31 280249618670.39
Equity:
Share capital 10125525000.00 10125525000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 10819566635.04 10825322259.36
Less: treasury shares 6987008823.24 6619807176.02
Other comprehensive income 280892216.98 110203866.35
Special reserve 19057187.43 60677296.91
Surplus reserve 1270743066.03 974151644.68
General risk reserve
Undistributed profit 28330397005.41 28859818194.51
Total equity attributable to the parent company 43859172287.65 44335891085.79
Non-controlling interest 50964958012.02 50332930555.50
Total equity 94824130299.67 94668821641.29
Total liabilities & equity 377845944183.98 374918440311.68
Legal representative: Li Shuirong Officer in charge of accounting: Wang Yafang Head of accounting department: Zhang Shaoying
2. Balance Sheet of the Parent Company
Unit: RMB
Items December 31 2024 January 1 2024
Current assets:
Cash and bank balances 682038492.96 3178729609.27
Held-for-trading financial assets
Derivative financial assets 590642.24
Notes receivable
Accounts receivable 2470580.97 20051350.25
Receivables financing 7377152.89 48866718.09
Advances paid 153158590.35 86770376.46
Other receivables 2378142849.26 3279228160.71
Including: Interest receivables
147 / 276 Full Text of 2024 Annual Report
Dividends receivable 550000000.00 1230000000.00
Inventories 169343856.05 373819275.01
including: data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets
Total current assets 3392531522.48 6988056132.03
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 48129034147.12 44868063401.17
Other equity instrument investments
Other non-current financial assets
Investment property 10124128.60 10395574.60
Fixed assets 274806084.66 278851669.68
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets 362662.83
Intangible assets 13461355.78 15926750.02
including: data resources
Development expenditures
including: data resources
Goodwill
Long-term prepayments
Deferred tax assets
Other non-current assets 2271130.13
Total non-current assets 48429696846.29 45173600058.30
Total assets 51822228368.77 52161656190.33
Current liabilities:
Short-term borrowings 7055037415.98 5205927913.36
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 575194158.34 877250766.14
Accounts payable 5205888310.81 2236363176.15
Advances received
Contract liabilities 710551453.29 132034985.73
Employee benefits payable 53751135.30 62259994.55
Taxes and rates payable 13850759.94 9502189.46
148 / 276 Full Text of 2024 Annual Report
Other payables 8264563912.00 17362996403.59
Including: Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 2788700063.61 5306548588.47
Other current liabilities 92371688.93 17164548.14
Total current liabilities 24759908898.20 31210048565.59
Non-current liabilities:
Long-term borrowings 8399186264.02 4066370787.22
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 7309864.22 8319120.04
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 8406496128.24 4074689907.26
Total liabilities 33166405026.44 35284738472.85
Equity:
Share capital 10125525000.00 10125525000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 11243374721.45 11243374721.45
Less: treasury shares 6987008823.24 6619807176.02
Other comprehensive income 217617723.95 80110211.22
Special reserve
Surplus reserve 1270743066.03 974151644.68
Undistributed profit 2785571654.14 1073563316.15
Total equity 18655823342.33 16876917717.48
Total liabilities & equity 51822228368.77 52161656190.33
3. Consolidated Income Statement
Unit: RMB
Items 2024 2023
I. Total operating revenue 326475162608.88 325111614268.09
149 / 276 Full Text of 2024 Annual Report
Including: operating revenue 326475162608.88 325111614268.09
Interest income
Premiums earned
Revenue from handling fees and commissions
II. Total operating cost 327290632772.57 326533413625.57
Including: operating cost 288990543880.55 287758885697.30
Interest expenses
Handling fees and commissions
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 24897439763.47 22947657583.48
Selling expenses 193112300.81 160462247.93
Administrative expenses 976713694.79 908998018.22
R&D expenses 5101483285.60 6555282352.50
Financial expenses 7131339847.35 8202127726.14
Including: interest expenses 7077035657.42 7352267160.76
Interest income 544687994.07 462192239.25
Add: Other income 2871905081.83 2589241344.18
Investment income (or less: losses) 163033295.85 460034533.27
Including: Investment income from associates and 244591550.05 275964998.21
joint ventures
Gains from derecognition of financial assets at
amortized cost
Gains on foreign exchange (or less: losses)
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses) 120298131.43 155886267.94
Credit impairment loss -189106251.69 -105271556.51
Assets impairment loss -163827403.04 -121513148.98
Gains on asset disposal (or less: losses) 17440176.91 3706231.92
III. Operating profit (or less: losses) 2004272867.60 1560284314.34
Add: Non-operating revenue 10470949.91 2956271.70
Less: Non-operating expenditures 109027148.89 10662129.76
IV. Profit before tax (or less: total loss) 1905716668.62 1552578456.28
Less: Income tax expenses -219603413.29 -50584009.36
V. Net profit (or less: net loss) 2125320081.91 1603162465.64
(I) Categorized by the continuity of operations
1. Net profit from continuing operations (or less: net loss) 2125320081.91 1603162465.64
2. Net profit from discontinued operations (or less: net loss)
150 / 276 Full Text of 2024 Annual Report
(II) Categorized by the portion of equity ownership
1. Net profit attributable to owners of parent company(or less: 724484686.45 1158146248.89
losses)
2. Net profit attributable to non-controlling shareholders(or 1400835395.46 445016216.75
less: losses)
VI. Other comprehensive income after tax 168426991.01 -15189892.14
Items attributable to the owners of the parent company 170688350.63 -29258747.36
(I) Not to be reclassified subsequently to profit or loss -590642.24 590642.24
1. Remeasurements of the net defined benefit plan
2. Items under equity method that will not be reclassified
to profit or loss
3. Changes in fair value of other equity instrument
investments
4. Changes in fair value of own credit risk
5. Others -590642.24 590642.24
(II) To be reclassified subsequently to profit or loss 171278992.87 -29849389.60
1. Items under equity method that may be reclassified to 120207167.57 34005723.54
profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into
other comprehensive income
4. Provision for credit impairment of other debt
investments
5. Cash flow hedging reserve
6. Translation reserve 51071825.30 -63855113.14
7. Others
Items attributable to non-controlling shareholders -2261359.62 14068855.22
VII. Total comprehensive income 2293747072.92 1587972573.50
Items attributable to the owners of the parent company 895173037.08 1128887501.53
Items attributable to non-controlling shareholders 1398574035.84 459085071.97
VIII. Earnings per share (EPS)
(I) Basic EPS (yuan per share) 0.08 0.12
(II) Diluted EPS (yuan per share) 0.08 0.12
Legal representative: Li Shuirong Officer in charge of accounting: Wang Yafang Head of accounting department: Zhang Shaoying
4. Income Statement of the Parent Company
Unit: RMB
Items 2024 2023
I. Operating revenue 2444347399.21 3801464198.72
Less: Operating cost 2369629011.51 3722981661.13
151 / 276 Full Text of 2024 Annual Report
Taxes and surcharges 14941864.15 6655211.53
Selling expenses 35432354.53 57902895.45
Administrative expenses 53799008.45 50209045.98
R&D expenses 82619613.45 96402110.80
Financial expenses 784068244.65 830017775.12
Including: interest expenses 837233949.57 889784232.11
Interest income 60929188.85 62283984.35
Add: Other income 1040297788.65 751632963.95
Investment income (or less: losses) 2827800018.74 1089479531.08
Including: Investment income from associates and joint 244101230.58 213559806.48
ventures
Gains from derecognition of financial assets at
amortized cost
Gains on net exposure to hedging risk (or less: losses)
Gains on changes in fair value (or less: losses)
Credit impairment loss 2255948.69 1510901.98
Assets impairment loss -846863.09 -2961557.87
Gains on asset disposal (or less: losses) -150448.41 -14028.90
II. Operating profit (or less: losses) 2973213747.05 876943308.95
Add: Non-operating revenue 14902.40 21209.63
Less: Non-operating expenditures 7314435.91 152018.99
III. Profit before tax (or less: total losses) 2965914213.54 876812499.59
Less: Income tax expenses
IV. Net profit (or less: net losses) 2965914213.54 876812499.59
(I) Net profit from continuing operations (or less: net losses) 2965914213.54 876812499.59
(II) Net profit from discontinued operations (or less: net losses)
V. Other comprehensive income after tax 137507512.73 35137595.13
(I) Not to be reclassified subsequently to profit or loss -590642.24 590642.24
1. Remeasurements of the net defined benefit plan
2. Items under equity method that will not be reclassified
to profit or loss
3. Changes in fair value of other equity instrument
investments
4. Changes in fair value of own credit risk
5. Others -590642.24 590642.24
(II) To be reclassified subsequently to profit or loss 138098154.97 34546952.89
1. Items under equity method that may be reclassified to 138098154.97 34546952.89
profit or loss
2. Changes in fair value of other debt investments
3. Profit or loss from reclassification of financial assets into
other comprehensive income
152 / 276 Full Text of 2024 Annual Report
4. Provision for credit impairment of other debt
investments
5. Cash flow hedging reserve
6. Translation reserve
7. Others
VI. Total comprehensive income 3103421726.27 911950094.72
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
5. Consolidated Cash Flow Statement
Unit: RMB
Items 2024 2023
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 372036265785.03 427728683875.50
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash receipts from original insurance contract premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest handling fees and commissions
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security transaction
Receipts of tax refund 8183620508.01 9958573336.65
Other cash receipts related to operating activities 3999364594.26 5651780404.79
Subtotal of cash inflows from operating activities 384219250887.30 443339037616.94
Cash payments for goods purchased and services received 319391099945.22 382643654728.90
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank deposit
Cash payments for insurance indemnities of original insurance
contracts
Net increase of loans to others
Cash payments for interest handling fees and commissions
Cash payments for policy bonus
Cash paid to and on behalf of employees 3418589693.72 3522432198.53
Cash payments for taxes and rates 24125457835.49 25072810953.81
Other cash payments related to operating activities 2674976807.99 4020918226.97
153 / 276 Full Text of 2024 Annual Report
Subtotal of cash outflows from operating activities 349610124282.42 415259816108.21
Net cash flows from operating activities 34609126604.88 28079221508.73
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments 3519097041.94 3180301658.70
Cash receipts from investment income 24778639.60 46185918.80
Net cash receipts from the disposal of fixed assets intangible 264117510.59 33821614.72
assets and other long-term assets
Net cash receipts from the disposal of subsidiaries & other 18698663.16
business units
Other cash receipts related to investing activities 185655184.16 471846135.19
Subtotal of cash inflows from investing activities 3993648376.29 3750853990.57
Cash payments for the acquisition of fixed assets intangible 31582215734.40 32643267964.49
assets and other long-term assets
Cash payments for investments 3524971851.23 3178359828.41
Net increase of pledged borrowings
Net cash payments for the acquisition of subsidiaries & other
business units
Other cash payments related to investing activities 142342025.66 216460115.21
Subtotal of cash outflows from investing activities 35249529611.29 36038087908.11
Net cash flows from investing activities -31255881235.00 -32287233917.54
III. Cash flows from financing activities:
Cash receipts from absorbing investments 1728000000.00
Including: Cash received by subsidiaries from non-controlling 1728000000.00
shareholders as investments
Cash receipts from borrowings 126032872268.04 138409693130.84
Other cash receipts related to financing activities 21475993068.61 20885325460.00
Subtotal of cash inflows from financing activities 149236865336.65 159295018590.84
Cash payments for the repayment of borrowings 124519359588.57 117188136080.88
Cash payments for distribution of dividends or profits and for 12029536471.85 9700463891.53
interest expenses
Including: Cash paid by subsidiaries to non-controlling 2678000000.00
shareholders as dividend or profit
Other cash payments related to financing activities 14376254046.91 31203648155.85
Subtotal of cash outflows from financing activities 150925150107.33 158092248128.26
Net cash flows from financing activities -1688284770.68 1202770462.58
IV. Effect of foreign exchange rate changes on cash and cash -207983361.27 -967182760.02
equivalents
V. Net increase in cash and cash equivalents 1456977237.93 -3972424706.25
Add: Opening balance of cash and cash equivalents 11486855097.52 15459279803.77
VI. Closing balance of cash and cash equivalents 12943832335.45 11486855097.52
154 / 276 Full Text of 2024 Annual Report
6. Cash Flow Statement of the Parent Company
Unit: RMB
Items 2024 2023
I. Cash flows from operating activities:
Cash receipts from sale of goods or rendering of services 15696588713.99 9684499404.78
Receipts of tax refund 13166721.36 90299027.73
Other cash receipts related to operating activities 1592873201.79 1009384263.80
Subtotal of cash inflows from operating activities 17302628637.14 10784182696.31
Cash payments for goods purchased and services received 11840353525.29 10826529124.42
Cash paid to and on behalf of employees 232656827.23 246704453.63
Cash payments for taxes and rates 65728903.16 13470165.07
Other cash payments related to operating activities 525957823.36 799794540.43
Subtotal of cash outflows from operating activities 12664697079.04 11886498283.55
Net cash flows from operating activities 4637931558.10 -1102315587.24
II. Cash flows from investing activities:
Cash receipts from withdrawal of investments 62012313.32
Cash receipts from investment income 3243228639.60 39685918.80
Net cash receipts from the disposal of fixed assets intangible 1307737.00 376446.55
assets and other long-term assets
Net cash receipts from the disposal of subsidiaries & other
business units
Other cash receipts related to investing activities 1681000000.00 2003000000.00
Subtotal of cash inflows from investing activities 4925536376.60 2105074678.67
Cash payments for the acquisition of fixed assets intangible 2271130.13 16403475.25
assets and other long-term assets
Cash payments for investments 2892000000.00 1516209000.00
Net cash payments for the acquisition of subsidiaries & other
business units
Other cash payments related to investing activities 1401550000.00 2878891000.00
Subtotal of cash outflows from investing activities 4295821130.13 4411503475.25
Net cash flows from investing activities 629715246.47 -2306428796.58
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings 18976690000.00 11935860000.00
Other cash receipts related to financing activities 5528552171.00 24651006000.00
Subtotal of cash inflows from financing activities 24505242171.00 36586866000.00
Cash payments for the repayment of borrowings 15272538000.00 11421360479.28
Cash payments for distribution of dividends or profits and for 1616645745.96 2030433516.19
interest expenses
155 / 276 Full Text of 2024 Annual Report
Other cash payments related to financing activities 15357194192.39 17082266592.43
Subtotal of cash outflows from financing activities 32246377938.35 30534060587.90
Net cash flows from financing activities -7741135767.35 6052805412.10
IV. Effect of foreign exchange rate changes on cash and cash 998308.18 288239.11
equivalents
V. Net increase in cash and cash equivalents -2472490654.60 2644349267.39
Add: Opening balance of cash and cash equivalents 3154529147.56 510179880.17
VI. Closing balance of cash and cash equivalents 682038492.96 3154529147.56
156 / 276 Full Text of 2024 Annual Report
7. Consolidated Statement of Changes in Owner’s Equity
Current amount
Unit: RMB
2024
Owner’s equity attributable to the parent company
Other equity
Items instruments Less: Other Surpl Gener Minorit Total Share Capital treasur compre Special us ic risk
Undistrib Other Subtota
Prefer Perpe y equity equity capital Oth reserve y stock hensive reserves reserv reserv
uted s l
red tual ers income es es
profits
shares bond
I. Balance at the end 1012552 1082532 661980 110203 606772
9741
51642885981
443358503329946688
5000.00 2259.36 7176.02 866.35 96.91 8194.51 91085.7 30555.5 21641.2of prior year 4.68 9 0 9
Add:
Cumulative changes
of accounting
policies
Error
correction of prior
period
Others
II. Balance at the 9741 443358 503329 946688
beginning of current 1012552 1082532 661980 110203 606772 28859815000.00 2259.36 7176.02 866.35 96.91 5164 8194.51 91085.7 30555.5 21641.2
year 4.68 9 0 9
III. Current period -
increase (or less: 5755624. 367201 170688
-2965--
647.22350.6341620191425294211476718
632027155308
decrease) 32 09.48 1.35 89.10 798.14
456.52658.38
(I) Total
comprehensive 170688 7244846 895173 139857 229374350.63 86.45 037.08 4035.84 7072.92
income
(II) Capital
contributed or 367201
-
367201172800136079
withdrawn by 647.22 647.22 0000.00 8352.78
owners
157 / 276 Full Text of 2024 Annual Report
1. Ordinary shares
contributed by 367201
-
367201 172800 136079647.22 647.22 0000.00 8352.78 owners
2. Capital
contributed by
holders of other
equity instruments
3. Amount of share-
based payment
included in equity
4. Others
(III) Profit 2965 - - - - 9142 1253905 957314 245000 340731
distribution 1.35 875.55 454.20 0000.00 4454.20
1. Appropriation of 2965 - 9142 2965914
surplus reserve 1.35 21.35
2. Appropriation of
general risk reserve
3. Appropriation of - - - - 9573144 957314 245000 340731
profit to owners 54.20 454.20 0000.00 4454.20
4. Others
(IV) Internal carry-
over within equity
1. Transfer of
capital reserve to
capital
2. Transfer of
surplus reserve to
capital
3. Surplus reserve to
cover losses
4. Changes in
defined benefit plan
158 / 276 Full Text of 2024 Annual Report
carried over to
retained earnings
5. Other
comprehensive
income carried over
to retained earnings
6. Others
----
(V) Special reserve 416201 416201 390166 806367
09.4809.4865.7675.24
1. Current period 396314 396314 323527 719842
appropriation 212.37 212.37 877.70 090.07
2. Current period 437934 437934 362544 800478
use 321.85
321.85543.46865.31
----
(VI) Others 5755624. 575562 552991 112855
324.323.5637.88
IV. Balance at the
end of current 1012552 1081956 698700 280892 190571
1270438591509649948241
5000.006635.048823.24216.9887.437430
2833039
7005.4172287.658012.030299.6
period 66.03 5 2 7
Amount of prior period
Unit: RMB
2023
Owner’s equity attributable to the parent company
Other equity
Items instruments Other Surpl Minorit Total
Share Capital Less: compre Special us Generic Undistrib
capital Prefer Perpe reserve treasur hensive reserves reserv risk uted
Other Subtota y equity equity
red tual Oth y stock
s l
income es reserves profits
shares bond ers
I. Balance at the end 1012552 108225 94513.3 397820 139462
88642926571472615499053971669
of prior year 5000.00 7039 60704.9 99878.1 60583.19 2364.65 613.71 4.72 0547.78 5 9 4
Add: Cumulative
changes of
accounting policies
159 / 276 Full Text of 2024 Annual Report
Error correction of
prior period
Others
II. Balance at the 108225
beginning of current 1012552 94513.3 397820 139462
88642926571472615499053971669
5000.00 2364.65 613.71 7039 0547.78 60704.9 99878.1 60583.1year 9 4.72 5 9 4
III. Current period
increase (or less: 272774 264160
-6067728768---2925871249.4058923292566427530249813
decrease) 5.97 4811.37 47.36 96.91 96 53.27 9619.16 677.31 8941.85
(I) Total -
comprehensive 292587 1158146 112888 459085 158797
income 47.36 248.89 7501.53 071.97 2573.50
(II) Capital
contributed or 264160 - -
withdrawn by 4811.37 264160 264160
owners 4811.37 4811.37
1. Ordinary shares - -
contributed by 2641604811.37 264160 264160owners 4811.37 4811.37
2. Capital
contributed by
holders of other
equity instruments
3. Amount of share-
based payment
included in equity
4. Others
(III) Profit 8768 - - - -
distribution 1249. 1564038 147635 120000 15963596 602.16 7352.20 000.00 7352.20
1. Appropriation of 8768 -
surplus reserve 1249. 8768124 96 9.96
2. Appropriation of
general risk reserve
3. Appropriation of
profit to owners
----
1476357147635120000159635
160 / 276 Full Text of 2024 Annual Report
352.207352.20000.007352.20
4. Others
(IV) Internal carry-
over within equity
1. Transfer of
capital reserve to
capital
2. Transfer of
surplus reserve to
capital
3. Surplus reserve to
cover losses
4. Changes in
defined benefit plan
carried over to
retained earnings
5. Other
comprehensive
income carried over
to retained earnings
6. Others
(V) Special reserve 606772 606772 588762 11955396.91 96.91 00.72 497.63
1. Current period 367322 367322 289192 656515
appropriation 639.12 639.12 850.95 490.07
2. Current period
use
306645306645230316536961
342.21342.21650.23992.44
(VI) Others 272774 272774 295694 3229715.97 5.97 04.62 50.59
IV. Balance at the 1012552 108253 661980 110203 606772 9741 443358 503329 946688end of current 5000.00 22259.3
2885981
7176.02 866.35 96.91 5164 8194.51 91085.7 30555.5 21641.2period 6 4.68 9 0 9
8. Statement of Changes in Owners’ Equity of the Parent Company
Current amount
161 / 276 Full Text of 2024 Annual Report
Unit: RMB
2024
Items Other equity instruments Share Capital Less: Other Special Surplus Undistribut Other
capital Preferred Perpetu Other reserve treasury comprehens Total equity
shares al bond s stock ive income
reserves reserves ed profits s
I. Balance at
the end of prior 1012552 11243374721 6619807176 80110211.2 974151644 10735633 1687691771
year 5000.00 .45 .02 2 .68 16.15 7.48
Add:
Cumulative
changes of
accounting
policies
Error correction
of prior period
Others
II. Balance at
the beginning 1012552 11243374721 6619807176 80110211.2 974151644 10735633 1687691771
of current year 5000.00 .45 .02 2.6816.157.48
III. Current
period increase 367201647.2 137507512. 296591421 17120083 1778905624.(or less: 2 73 .35 37.99 85
decrease)
(I) Total
comprehensive 137507512. 29659142 3103421726.income 73 13.54 27
(II) Capital
contributed or 367201647.2 -
withdrawn by 2 367201647.2
owners 2
1. Ordinary
shares 367201647.2
-
contributed by 2 367201647.2
owners 2
2. Capital
contributed by
holders of other
162 / 276 Full Text of 2024 Annual Report
equity
instruments
3. Amount of
share-based
payment
included in
equity
4. Others
(III) Profit 296591421 - -
distribution .35 12539058 957314454.275.55 0
1.296591421
Appropriation .35
-
of surplus 296591421
reserve .35
2.
Appropriation - -
of profit to 957314454 957314454.2
owners (or .20 0
shareholders)
3. Others
(IV) Internal
carry-over
within equity
1. Transfer of
capital reserve
to capital
2. Transfer of
surplus reserve
to capital
3. Surplus
reserve to cover
losses
4. Changes in
defined benefit
plan carried
over to retained
earnings
163 / 276 Full Text of 2024 Annual Report
5. Other
comprehensive
income carried
over to retained
earnings
6. Others
(V) Special
reserve
1. Current
period
appropriation
2. Current
period use
(VI) Others
IV. Balance at
the end of 1012552 11243374721 6987008823 217617723. 12707430 27855716 1865582334
current period 5000.00 .45 .24 95 66.03 54.14
2.33
Amount of prior period
Unit: RMB
2023
Other equity instruments Specia
Items Share Capital Less: Other l Surplus Undistributed Oth
capital Preferred Perpetu reserve treasury comprehens reserv reserves profits ers Total equity
shares al bond Others stock ive income es
I. Balance at the
end of prior 1012552 11243393393 3978202364. 44972616. 886470394. 1760789418. 20082948458
year 5000.00 .54 65 09 72 72 .42
Add:
Cumulative
changes of
accounting
policies
Error correction
of prior period
Others
164 / 276 Full Text of 2024 Annual Report
II. Balance at
the beginning of 1012552 11243393393 3978202364. 44972616. 886470394. 1760789418. 20082948458
current year 5000.00 .54 65 09 72 72 .42
III. Current
period increase 2641604811. 35137595. 87681249.9 - -
(or less: -18672.09 37 13 6 687226102.5 3206030740.decrease) 7 94
(I) Total
comprehensive 35137595. 876812499.5 911950094.72
income 13 9
(II) Capital
contributed or 2641604811. -
withdrawn by 37 2641604811.owners 37
1. Ordinary
shares 2641604811. -
contributed by 37 2641604811.owners 37
2. Capital
contributed by
holders of other
equity
instruments
3. Amount of
share-based
payment
included in
equity
4. Others
(III) Profit - -
distribution
87681249.9
61564038602.1476357352.1620
1. Appropriation
of surplus 87681249.9 -
reserve 6 87681249.96
2. Appropriation - -
of profit to 1476357352. 1476357352.owners 20 20
165 / 276 Full Text of 2024 Annual Report
3. Others
(IV) Internal
carry-over
within equity
1. Transfer of
capital reserve
to capital (or
share capital)
2. Transfer of
surplus reserve
to capital (or
share capital)
3. Surplus
reserve to cover
losses
4. Changes in
defined benefit
plan carried
over to retained
earnings
5. Other
comprehensive
income carried
over to retained
earnings
6. Others
(V) Special
reserve
1. Current
period
appropriation
2. Current
period use
(VI) Others -18672.09 -18672.09
IV. Balance at
the end of 1012552 11243374721 6619807176. 80110211. 974151644. 1073563316. 16876917717
current period 5000.00.4502226815.48
166 / 276 Full Text of 2024 Annual Report
167 / 276 Full Text of 2024 Annual Report
III. Company Profile
Rongsheng Petrochemical Co. Ltd. (hereinafter referred to as the Company) is a joint-stock limited company
initiated and established on the foundation of Rongsheng Chemical Fiber Group Co. Ltd. by Zhejiang Rongsheng
Holding Group Co. Ltd. as well as natural persons including Li Shuirong Li Yongqing Li Guoqing Xu Yuejuan
Ni Xincai and Zhao Guanlong. The Company was registered on June 18 2007 and is headquartered in Hangzhou
Zhejiang Province. The Company now holds the Business License (Unified Social Credit Code:
91330000255693873W) issued by Zhejiang Administration for Market Regulation with a registered capital of
RMB 10125525000.00 and a total of 10125525000 shares (par value: RMB 1 per share) including outstanding
shares subject to sales restrictions: 627243750 A shares and outstanding shares not subject to sales restrictions:
9498281250 A shares. Shares of the Company were listed for trading at Shenzhen Stock Exchange on November
22010.
The Company operates in the petrochemical fiber industry. The operating activities mainly are the production
and sales of refined oil products chemical products PTA polyester chips polyester filaments and films.These financial statements were approved for issuance by the Company’s Sixth Board of Directors at its 23th
meeting on April 24 2025.IV. Preparation Basis of Financial Statements
1. Preparation basis
The financial statements of the Company are prepared on a going concern basis.
2. Going concern
There are no matters or circumstances that cause the Company to have serious doubts about its going concern ability
within 12 months from the end of the reporting period.V. Significant Accounting Policies and Accounting Estimates
Important note: According to the actual production and operation characteristics the Company has formulated
specific accounting policies and accounting estimates for transactions or events such as impairment of financial
instruments inventory construction in progress depreciation of fixed assets intangible assets and revenue
recognition.
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Accounting Standards
for Business Enterprises which truthfully and completely reflect the Company’s financial position business
achievements cash flow and other relevant information.
2. Accounting period
The accounting year is the calendar year from January 1 to December 31.
3. Operating cycle
168 / 276 Full Text of 2024 Annual Report
The business cycle of the Company is short and 12 months is taken as the liquidity division standard of assets
and liabilities.
4. Functional currency
The Company and its domestic subsidiaries adopt RMB as the functional currency while overseas subsidiaries
such as Hong Kong Sheng Hui Co. Ltd. Hong Kong Yisheng Dahua Petrochemical Co. Ltd. Yisheng New
Materials Trading Co. Ltd. Rongsheng Petrochemical (Hong Kong) Co. Ltd. Rongsheng Petrochemical
(Singapore) Private Co. Ltd. Rongtong Logistics (Singapore) Private Co. Ltd. and Zhejiang Petroleum &
Chemical (Singapore) Private Co. Ltd. engaging in overseas operations choose the currency in the main economic
environment where they operate as the functional currency.
5. Determination method and selection basis of materiality
□Applicable □ Not applicable
Items Materiality
Significant advances paid with age over one year With individual balance exceeding 0.5% of total assets
Significant dividend receivable with age over one year With individual balance exceeding 0.5% of total assets
Significant construction in progress With individual balance exceeding 0.5% of total assets
Significant accounts payable with age over one year With individual balance exceeding 0.5% of total assets
Significant other payables with age over one year With individual balance exceeding 0.5% of total assets
Significant contract liabilities with age over one year With individual balance exceeding 0.5% of total assets
Significant foreign operating entities 15% of total revenue
Significant cash flows from investing activities With individual balance exceeding 0.5% of total assets
Significant not wholly-owned subsidiaries With individual total assets exceeding 3% of the group’s total assets
Significant associates With the carrying amount of individual investment exceeding 0.5% of the group’s total assets
With individual balance exceeding 3% of total assets or other
Significant contingencies events that may be significantly influential for investors in
decision-making
Significant events after the balance sheet date Profit distribution and other events after the balance sheet date that may be significantly influential for investors in decision-making
6. Accounting methods for business combinations under and not under common control
1. Accounting methods for business combinations under common control
The assets and liabilities acquired by the Company in business combination shall be measured according to the
carrying amount of the combined party in the consolidated financial statements of the final controlling party on the
date of combination. The Company shall adjust the capital reserve according to the difference between the carrying
amount share of the owner’s equity of the combined party in the consolidated financial statements of the final
controlling party and the carrying amount of the consolidated consideration paid or the total face value of the issued
shares; If the capital reserve is not sufficient for offsetting the adjustment is made to retained earnings.
2. Accounting methods for business combinations not under the common control
On the purchase date the difference between the combined cost and the fair value share of the identifiable net
assets of the acquiree obtained in the merger is recognized as goodwill. If the combined cost is less than the fair
value share of the identifiable net assets of the acquiree obtained in the combination first the fair value of
169 / 276 Full Text of 2024 Annual Report
identifiable assets liabilities and contingent liabilities of the acquiree and the measurement of combined cost are
reviewed. If the combined cost is still less than the fair value share of identifiable net assets of the acquiree obtained
in the merger after review the difference is included in the current gain and loss.
7. Judgement standard of control and preparation method of consolidated financial statements
1. Judgement of control
Control means the Company has the power over the investee enjoys variable returns by participating in the
relevant activities of the investee and has the ability to use the power to influence the variable amount of returns.
2. Preparation method for consolidated financial statements
The parent company brings all subsidiaries under its control into the consolidation scope of the consolidated
financial statements. The consolidated financial statements are based on the financial statements of the parent
company and its subsidiaries and are prepared according to other related documents by the parent company in
accordance with the Accounting Standards for Business Enterprises No. 33—Consolidated Financial Statements.
8. Classification of joint arrangement and accounting methods for joint operation
1. The joint arrangement is divided into joint operation and joint venture.
2. When the Company is a party to a joint operation the following items are recognized in relation to the share
of interest in the joint operation:
(1) Recognition of assets held individually and assets held jointly on a holding share basis;
(2) Recognition of liabilities assumed individually and liabilities assumed jointly on a holding share basis;
(3) Recognition of revenue from the sale of the Company’s share of common operation output;
(4) Recognition of income from joint operations arising from the sale of assets based on the Company’s share
of ownership;
(5) Recognition of expenses incurred separately and recognition of expenses incurred in joint operations based
on the Company’s share of ownership.
9. Recognition standard for cash and cash equivalents
Cash listed in the statement of cash flows refers to cash on hand and deposits that can be used for payment at
any time. The term “cash equivalents” refers to short-term and highly liquid investments that are readily convertible
to known amounts of cash and which are subject to an insignificant risk of change in value.
10. Foreign currency business and conversion of foreign currency statements
1. Translation of foreign currency business
In foreign currency transactions the spot exchange rate at the transaction date shall be adopted at the initial
recognition to convert the foreign currency into the amount of RMB. On the balance sheet date the monetary items
denominated in foreign currencies are translated at the spot exchange rate on the balance sheet date. The exchange
differences arising from the exchange rate are included in current gain and loss except for the exchange difference
between the principal and interest of foreign currency-specific borrowings related to the acquisition and construction
of assets eligible for capitalization. The foreign currency non-monetary items measured at historical cost are still
translated at the spot exchange rate at the transaction date and their RMB amount shall not be changed. Foreign
currency non-monetary items measured at fair value are translated at the spot exchange rate at the determination
date of fair value and the exchange differences are included in current gain and loss or other comprehensive income.
170 / 276 Full Text of 2024 Annual Report
2. Translation of foreign currency financial statements
Items of assets and liabilities in the balance sheet are translated at the spot exchange rate prevailing on the
balance sheet date. Except for the “undistributed profit” item other items of owner’s equity are translated at the
spot exchange rate at the transaction date. Income and expense items in the income statement are translated at the
approximate spot exchange rate at the transaction date. The converted difference in foreign currency financial
statements arising from the above translations is included in other comprehensive income.
11. Financial instruments
1. Classification of financial assets and financial liabilities
At initial recognition financial assets are classified into the following three categories: (1) financial assets at
amortized cost; (2) financial assets at fair value through other comprehensive income; and (3) financial assets at fair
value through gain and loss.At initial recognition financial liabilities are classified into four categories: (1) financial liabilities at fair value
through gain and loss; (2) financial liabilities that are formed since the transfer of financial assets do not comply
with the conditions for derecognition or continue to involve in the financial assets to be transferred; (3) financial
guarantee contracts not falling under the above (1) or (2) and loan commitments not falling under the above (1) and
lending at a rate lower than the market interest rate; (4) financial liabilities at amortized cost.
2. Recognition basis measurement methods and derecognition conditions for financial assets and financial
liabilities
(1) Recognition basis and initial measurement methods for financial assets and financial liabilities
A financial asset or a financial liability shall be recognized when the Company becomes a party to a financial
instrument contract. A financial asset or financial liability shall be measured at fair value at the initial recognition.For financial assets or financial liabilities at fair value through gain and loss the transaction expenses thereof shall
be directly recorded in current gain and loss. For other categories of financial assets or financial liabilities the
related transaction expenses are included in the initial recognition amount. However if the accounts receivable
initially recognized by the Company do not contain significant financing components or the Company does not
consider the financing components in contracts less than one year the initial recognition shall be carried out
according to transaction price as defined in the Accounting Standards for Business Enterprises No. 14—Revenue.
(2) Subsequent measurement method for financial assets
1) Financial assets measured at amortized cost
They are subsequently measured at amortized cost by adopting the effective interest method. Gains or losses
arising from financial assets measured at amortized cost and not part of any hedging relationship are included in
current gain and loss upon derecognition reclassification amortization under the effective interest method or
recognition of impairment.
2) Debt instrument investments at fair value through other comprehensive income
They are subsequently measured at fair value. Interest impairment losses or gains and exchange gains and
losses calculated by the effective interest method are included in current gain and loss and other gains or losses are
included in other comprehensive income. Upon derecognition the accumulated gain or loss previously included in
other comprehensive incomes is transferred from other comprehensive incomes and included in the current gain and
loss.
3) Equity instrument investments at fair value through other comprehensive income
They are subsequently measured at fair value. Dividends obtained (except those falling under the recovery of
investment costs) are included in current gain and loss and other gains or losses are included in other comprehensive
income. Upon derecognition the accumulated gain or loss previously included in other comprehensive incomes is
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transferred out from other comprehensive incomes and included in retained earnings.
4) Financial assets at fair value through gain and loss
They are subsequently measured at fair value and the resulting gains or losses (including interest and dividend
income) are included in current gain and loss unless the financial asset is part of the hedging relationship.
(3) Subsequent measurement method for financial liabilities
1) Financial liabilities at fair value through gain and loss
Such financial liabilities comprise trading financial liabilities (including derivatives of financial liabilities) and
those specified as financial liabilities at fair value through gain and loss. Such financial liabilities are subsequently
measured at fair value. Change in fair value of financial liability designated to be measured at fair value through
gain and loss due to change in the Company’s own credit risk is included in other comprehensive income unless
the treatment will cause or expand the accounting mismatch in gain and loss. Other gains or losses arising from such
financial liabilities (including interest expenses except changes in fair value caused by changes in the own credit
risk) are included in current gain and loss unless the financial liabilities are part of the hedging relationship. Upon
derecognition the accumulated gain or loss previously included in other comprehensive incomes is transferred out
from other comprehensive incomes and included in retained earnings.
2) Financial liabilities that are formed since the transfer of financial asset does not comply with the conditions
for derecognition or continue to involve in the financial assets to be transferred
They are measured pursuant to relevant provisions under Accounting Standards for Business Enterprises No.
23—Transfer of Financial Assets.
3) Financial guarantee contracts not falling under the above 1) or 2) and loan commitments not falling under
the above 1) and to lend at a rate lower than the market interest rate
A subsequent measurement shall be made after they are initially recognized according to the higher one of the
following: * the amount of loss reserve determined in accordance with the provision for impairment of financial
instruments; * the remaining amount after the determined accumulative amortization amount is deducted from the
initially recognized amount in accordance with relevant provisions of the Accounting Standards for Business
Enterprises No.14—Revenue.
4) Financial liabilities at amortized cost
They are measured at amortized cost under the effective interest method. Gains or losses arising from financial
liabilities measured at amortized cost and not part of any hedging relationship are included in current gain and loss
when derecognized and amortized under the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) The Company will derecognize the financial assets when one of the following conditions are met:
* The contractual rights to the cash flows from the financial asset expire;
* The transfer of such financial assets has been completed and is in line with the provisions on derecognition
of a financial asset under the Accounting Standards for Business Enterprises No. 23—Transfer of Financial Assets.
2) When the current obligations of financial liabilities (or part thereof) have been discharged the recognition
of the financial liabilities (or part thereof) shall be terminated accordingly.
3. Recognition basis and measurement method for transfer of financial assets
Where the Company transfers almost all risks and returns related to the ownership of the financial assets
transferred these financial assets will be derecognized and the rights and obligations that occurred or were retained
during the transfer are separately recognized as assets or liabilities. Where almost all risks and rewards on the
ownership of financial assets are retained the transferred financial assets shall continue to be recognized. Where
the Company has neither transferred nor retained any risk and reward relating to the ownership of the financial
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assets it shall be disposed of in the following conditions: (1) where the control over the financial asset is not retained
the recognition of the financial asset shall be terminated and the rights and obligations arising or retained in the
transfer shall be separately recognized as assets or liabilities; (2) where the control over the financial asset is retained
the relevant financial asset shall be recognized according to the degree of continued involvement in the transferred
financial asset and the relevant liabilities shall be recognized accordingly.When the overall transfer of financial assets meets the conditions for derecognition the difference between the
following two amounts shall be included in the current gain and loss: (1) the carrying amount of the transferred
financial assets on the date of derecognition; (2) the sum of the consideration received from the transfer of financial
assets and the amount of the derecognized part in a cumulative amount of change in fair value which is originally
included in other comprehensive income (the financial assets involved in the transfer are debt instrument
investments at fair value through other comprehensive income). A part of financial assets is transferred and if the
transferred part meets the conditions for derecognition entirely the carrying amount of the whole financial asset
before transfer shall be allocated between the derecognized part and the continued recognition part according to
their relative fair values on the transfer date and the difference between the following two amounts shall be included
in current gain and loss: (1) the carrying amount of the derecognized part; (2) the sum of the consideration of the
derecognized part and the amount of the corresponding derecognized part in the accumulated amount of changes in
fair value originally directly included in other comprehensive income (the financial assets involved in the transfer
are debt instrument investments at fair value through other comprehensive income).
4. Methods for determination of the fair value of financial assets and financial liabilities
When determining the fair value of related financial assets and financial liabilities the Company adopts the
valuation technique applicable in the prevailing circumstance and supported by sufficient available data and other
information. The Company classifies the input values used by the valuation technique as the following tiers and
uses them in turns:
(1) Tier 1 input value refers to the unadjusted quotations of the same assets or liabilities in an active market
which can be obtained on the measurement date;
(2) Tier 2 input value refers to them directly or indirectly observable input value of relevant assets or liabilities
apart from Tier 1 input value including: quotations of similar assets or liabilities on an active market; quotations of
identical or similar assets or liabilities in markets that are not active; observable input values other than quotations
such as interest rates and yield curves that are observable during normal quotation intervals; input values for market
validation etc.;
(3) Tier 3 input value refers to the unobservable input value of relevant assets or liabilities including the
volatility of interest rate and stock that cannot be directly observed or cannot be verified by observable market data
the future cash flows of the disposal obligations assumed in the business combination financial forecasts made
using its own data etc.
5. Impairment of financial instruments
On the basis of expected credit loss for financial assets at amortized cost debt instrument investments at fair
value through other comprehensive income contract assets lease receivables loan commitments classified as
financial liabilities at fair value through gain and loss financial guarantee contracts that do not belong to financial
liabilities at fair value through gain and loss or financial liabilities formed by the transfer of financial assets that do
not meet the conditions for derecognition or continue to be involved in the transferred financial assets shall be
impaired and loss reserve shall be recognized.Expected credit loss refers to the weighted average of credit losses of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contract cash flow receivables according to the
contract and all cash flows expected to be collected that is the present value of all cash shortages. The financial
assets purchased or generated by the Company that have suffered credit impairment are discounted according to the
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credit-adjusted effective interest rate of the financial assets.For the purchased or originated financial assets with credit impairment the Company only recognizes the
cumulative change of expected credit loss in the whole existence period after initial recognition as the loss reserve
on the balance sheet date.For lease receivables and the receivables and contract assets arising from transactions as stipulated under the
Accounting Standards for Business Enterprises No. 14—Revenue the Company uses simplified measurement
methods to measure the loss reserve according to the expected credit loss amount equivalent to the whole duration.For financial assets other than the above measurement methods the Company assesses whether its credit risk
has increased significantly since initial recognition on each balance sheet date. If the credit risk has increased
significantly since the initial recognition the Company shall measure the loss reserve according to the amount of
expected credit loss during the whole existence period. If the credit risk has not increased significantly since the
initial recognition the Company shall measure the loss reserve according to the amount of expected credit loss of
the financial instrument in the next 12 months.The Company uses available reasonable and based information including forward-looking information to
determine whether the credit risk of financial instruments has increased significantly since the initial recognition by
comparing the default risk of financial instruments on the balance sheet date with the default risk on the initial
recognition date.On the balance sheet date if the Company judges that the financial instrument only has low credit risk it is
assumed that the credit risk of the financial instrument has not increased significantly since the initial recognition.The Company evaluates the expected credit risk and measures the expected credit loss on the basis of a single
financial instrument or combination of financial instruments. When based on the portfolio of financial instruments
the Company divides the financial instruments into different portfolios according to the common risk characteristics.The Company re-measures the expected credit loss on each balance sheet date and the resulting increase or
reversal of the loss reserve is included in the current gain and loss as impairment loss or profit. For financial assets
at amortized cost the loss provision is offset against the carrying amount of the financial asset as given in the
balance sheet; For debt investment measured at fair value through other comprehensive income the loss allowances
are recognized in other comprehensive income by the Company instead of offsetting the carrying amount of the
financial assets.
6. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are listed separately on the balance sheet and cannot offset each other.However if the following conditions are met at the same time the net amount after mutual offset shall be listed in
the balance sheet: (1) the Company has the legal right to set off the recognized amount and such legal right is
currently enforceable; (2) the Company intends either to settle on a net basis or to realize the financial assets and
pay off the financial liabilities simultaneously.For the transfer of financial assets not in line with the conditions for derecognition the Company does not
offset the transferred financial assets and liabilities.
12. Contract assets
The Company presents contract assets or liabilities in the balance sheet based on the relation between
performance obligation and customer payment. The Company will record the net amount of contract assets and
contract liabilities under the same contract after they are set off against each other.The Company records the right to receive consideration from customers unconditionally (i.e. only depending
on the time lapses) as the receivables and presents the right to receive consideration when goods have been
transferred to the customers which depends on other factors other than the time lapses as contract assets.
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1. Accounts receivable and contract assets with expected credit losses provided by portfolio of credit risk
characteristics
Basis for Method for measuring expected credit loss
Categories determination of
portfolio
Based on historical credit loss experience the
Bank acceptance receivable current situation and the forecast of future
Type of notes economic conditions the Company calculates
expected credit loss through exposure at
Trade acceptance receivable default and lifetime expected credit loss rate.Based on historical credit loss experience the
current situation and the forecast of future
Accounts receivable – Portfolio grouped with ages Ages economic conditions the Company prepares the comparison table of ages and expected
credit loss rate of accounts receivable so as
to calculate expected credit loss.Accounts receivable – Portfolio grouped with trade
funds of overseas subsidiaries Nature of receivables
Based on historical credit loss experience the
current situation and the forecast of future
economic conditions the Company calculates
Accounts receivable – Portfolio grouped with Related parties brought expected credit loss through exposure at
balances due from related parties within the into the consolidation default and lifetime expected credit loss rate.consolidation scope scope [Note]
Other receivables – Portfolio grouped with balances Related parties brought
due from related parties within the consolidation into the consolidation
scope scope [Note]
Other receivables – Portfolio grouped with deposits
for borrowings
Other receivables – Portfolio grouped with
government funds receivable Based on historical credit loss experience the
Other receivables – Portfolio grouped with futures current situation and the forecast of future
margin economic conditions the Company calculates
expected credit loss through exposure at
Other receivables – Portfolio grouped with settlement default and 12-month or lifetime expected
funds of paper trade Nature of receivables credit loss rate.Other receivables – Portfolio grouped with security
deposits receivable
Other receivables – Portfolio grouped with petty cash
etc. receivable
Other receivables – Portfolio grouped with
intercompany balances receivable
[Note]: Related parties of the Company and within the scope of consolidated financial statements
2. Comparison table between aging of aging portfolio and expected credit loss rate
Ages Expected credit loss rate of accounts receivable (%)
Within 1 year (inclusive the same hereinafter) 5
1-2 years 10
2-3 years 30
Over 3 years 100
The aging of accounts receivable shall be calculated from the date of initial recognition.
3. Criteria for identifying accounts receivable with expected credit losses provided by a single basis
For accounts receivable with credit risk significantly different from the portfolio credit risk the Company
makes provisions for expected credit losses by a single basis.
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13. Inventory
1. Classification of inventories
Inventory includes finished products or commodities held for sale in daily activities products in the process of
production materials and supplies consumed in the process of production or providing labor services.
2. Valuation method for delivered inventories
Inventories delivered shall be weighted average at the end of each month.
3. Inventory system of inventories
The perpetual inventory system is adopted for inventories.
4. Amortization method for low-value consumables and packaging materials
(1) Low-value consumables
Low-value consumables are amortized using the one-off amortization method.
(2) Packaging materials
Low-value consumables are amortized using the one-off amortization method.
5. Recognition standards and accrual method of inventory falling price reserves
On the balance sheet date the inventory was measured at the lower of the cost and net realizable value.Inventory falling price reserves were accrued based on the difference between the cost and the net realizable value.The net realizable value of inventory directly used for sale will be determined by the amount of the estimated selling
price of the inventory minus the estimated sales expenses and related taxes. For inventories that need to be processed
the net realizable value shall be determined in the normal production and operation process by subtracting the
estimated selling price of finished products produced from the estimated cost to be incurred when completion the
estimated sales expenses and relevant taxes and fees. On the balance sheet date if a part of the same inventory has
a contract price agreement and other parts do not have a contract price the net realizable value shall be determined
respectively and the corresponding cost shall be compared to determine the accrual or reversal amount of inventory
depreciation reserve respectively.
14. Long-term equity investment
1. Judgment of joint control and significant influence
Joint control refers to the shared control over a certain arrangement according to the relevant agreement and
the activities under such arrangement are subject to approval by the parties sharing the control power. Significant
influence refers to that one party has the power to participate in the decision-making of financial and operating
policies of the investee but is unable to control or jointly control these policies with other parties.
2. Determination of investment cost
(1) For business combination under common control where the combining party uses cash payment transfer
of non-cash assets assumption of debts or issuing of equity securities as combination consideration the share of
owner’s equity of the combined party acquired in the carrying amount of total owner’s equity in consolidated
financial statements of the ultimate controller on the combination date shall be identified as the initial investment
cost of long-term equity investment. The difference between the initial investment cost of long-term equity
investment and the carrying amount of the combination consideration paid or the par value of the issued shares is
adjusted against the capital reserve. If the capital reserve is not sufficient for offsetting the adjustment is made to
retained earnings.For the long-term equity investments formed through business combination under common control] and
implemented through multiple transactions step by step by the Company it is a must to judge whether they are
“package deals”. If they are package deals each deal is regarded as a deal to obtain control right for accounting
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treatment. If it is not a package deal on the date of combination the share of the carrying amount of net assets of
the combined party that should be enjoyed after combination in the consolidated financial statements of the ultimate
controller is recognized as an initial investment cost. The difference between the initial investment cost of long-
term equity investment on the date of combination and the sum of the carrying amount of long-term equity
investment before the combination is realized and the carrying amount of consideration additionally paid to further
acquire shares on the date of combination is adjusted against the capital reserve. If the capital reserve is not sufficient
for offsetting the adjustment is made to retained earnings.
(2) As for business combinations not under common control the fair value of the combination consideration
paid on the combination date is recorded as the initial investment cost of long-term equity investment.For the long-term equity investments formed through business combination not under common control and
implemented through multiple transactions step by step by the Company the accounting treatment is different in
unconsolidated financial statements and consolidated financial statements:
1) In individual financial statements the initial investment cost of long-term equity investment accounted using
the cost method is measured at the sum of the carrying amount of equity investment originally held and investment
cost additionally paid.
2) In consolidated financial statements it is a must to judge whether they are “package deals”. If they are
package deals each deal is regarded as a deal to obtain control right for accounting treatment. Suppose these
transactions are not “package deals” the equities of the acquiree held before the purchase date shall be re-measured
at fair value at the purchase date. The difference between the fair value and its carrying amount shall be recognized
as current investment income. In case the equity of the acquiree held before the purchase date involves other
comprehensive income under the equity method relevant other comprehensive income shall be transferred to the
current return on the purchase date except for other comprehensive income resulting from the re-measurement of
the investee’s net defined benefit plan liabilities or changes in net assets.
(3) Except for the formation of business combination: As for those obtained by cash payment the actually paid
purchase price is taken as the initial investment cost; the long-term equity investment formed by issuing equity
securities the fair value of issuing equity securities is taken as the initial investment costs. If acquired through debt
restructuring its initial investment cost shall be determined in accordance with the Accounting Standards for
Business Enterprises No. 12—Debt Restructuring; in the case of non-monetary asset exchange the initial
investment cost shall be determined in accordance with the Accounting Standards for Business Enterprises No. 7—
Exchange of Non-monetary Assets.
3. Methods for subsequent measurement and gain and loss recognition
The long-term equity investment in the invested entity under its control will be accounted for through the cost
method; long-term equity investment in associates and joint ventures is accounted for under the equity method.
4. Treatment methods for investments in subsidiaries through multiple deals step by step until control losing
(1) Judgment principle for whether a “package deal” or not
If the equity investment in the subsidiary is disposed of step by step through multiple transactions until it loses
control the Company will judge whether the step-by-step transaction is a “package deal” by combining the terms
of the transaction agreement the disposal consideration obtained separately the object of equity sale the disposal
method and the disposal time in each step of the step-by-step transactions. The terms conditions and economic
impact of each transaction meet one or more of the following conditions which usually indicates that multiple
transactions are “package deals”:
1) These transactions were concluded at the same time or under the consideration of mutual impact;
2) These transactions as a whole can achieve a complete business result;
3) The occurrence of a transaction depends on the occurrence of at least one other transaction;
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4) A transaction is uneconomical when viewed alone but it is economical when considered together with other
transactions.
(2) Accounting treatment for non-”package deals”
1) Individual financial statements
For disposal of equity the difference between carrying amount and the actual price of the acquisition shall be
recorded into current gain and loss. For the remaining equity if the investor still has significant influence over the
investee or imposes joint control with other parties it is accounted for by the equity method; In case of failure to
control jointly control or significantly influence the investee it shall be calculated in accordance with the provisions
of the Accounting Standards for Business Enterprises No. 22—Recognition and Measurement of Financial
Instruments.
2) Consolidated financial statements
Before losing control the capital reserves (capital premium) are adjusted at the difference between the disposal
cost and the share in net assets of subsidiaries calculated continuously from the acquisition date or combination date
corresponding to the disposal of long-term equity investment; if the capital premium is not sufficient to be offset
retained earnings are offset.When losing control over a former subsidiary the remaining equity is re-measured at the fair value on the date
of control loss. The balance of the sum of the consideration received through the disposal of equity and the fair
value of the remaining equity after deducting the entitled share of net assets continuously calculated at the original
shareholding ratio from the purchase date or the date of combination in the subsidiary is recognized in the investment
income for the period during which the control is lost and is written off against goodwill. Other comprehensive
income related to equity investment in the former subsidiary is transferred into return on investment for the period
during which the control is lost.
(3) Accounting treatment for “package deals”
1) Individual financial statements
Each deal is considered as a deal for the disposal of the subsidiary and losing control of accounting treatment.However the difference between the disposal cost of each deal before losing the control and the carrying amount
of long-term equity investment corresponding to the disposal investment is recognized as other comprehensive
income in individual financial statements and when the control is lost transferred together into gain and loss for
the period during which the control is lost.
2) Consolidated financial statements
Each deal is considered as a deal for the disposal of the subsidiary and losing control of accounting treatment.However the difference between the disposal cost of each deal before losing the control and the entitled share of
net assets of the subsidiary corresponding to the disposal investment is recognized as other comprehensive income
in consolidated financial statements and when the control is lost transferred together into gain and loss for the
period during which the control is lost.
15. Investment properties
Measurement model of investment properties
Measurement by the cost method
Depreciation or amortization methods
1. Investment properties of the Company include the land use rights leased and held for sale after appreciation
and leased buildings.
2. Investment properties are initially measured by cost and subsequently measured by the cost model with its
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depreciation or amortization conducted by the same methods for fixed assets and intangible assets.
16. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for production service lease or operation with a service life of more
than one accounting year. Fixed assets can be recognized only when related economic benefits are very likely to
flow into the Company and their costs can be measured reliably.
(2) Depreciation method
Categories Depreciation method Useful life (years) Residual value Annual depreciation proportion (%) rate（%）
Buildings and
structures Straight-line method 5-30 5 or 10 19.00-3.00
Machinery Straight-line method 10-15 5 or 10 9.50-6.00
Transport facilities Straight-line method 4-5 5 or 10 23.75-18.00
Other equipment Straight-line method 3-10 5 or 10 31.67-9.00
17. Construction in progress
1. Construction in progress is able to be recognized only when related economic benefits are very likely to
flow into the Company and its costs can be measured reliably. Construction in progress is measured at the actual
cost incurred before such asset is ready for the intended use.
2. Construction in progress is carried forward to fixed assets based on actual costs of the project when it is
ready for its intended use. As for construction in progress which is ready for the intended use but has not gone
through the formalities of final accounts of completion it shall be transferred into fixed assets at the estimated value.Upon the final accounts of completion the previous tentatively estimated value other than accrued depreciation
shall be adjusted based on actual costs.Categories Standards and time point of transferring construction in progress to fixed assets
When the main project and supporting projects have been substantially completed and reached the
Buildings and structures intended design requirements and acceptance has been completed by survey design construction
supervision and other units.Machinery When the design requirements or standards specified in the contract are met after installation and commissioning
18. Borrowing costs
1. Recognition principle of the capitalization of borrowing costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of a qualifying asset for capitalization it shall be capitalized and recognized as costs of
relevant assets; Other borrowing costs shall be recognized as an expense when they are incurred and included in
current gain and loss.
2. Capitalization period of borrowing costs
(1) Capitalization begins when the borrowing cost meets the following conditions: 1) asset expenditure has
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been incurred; 2) the borrowing costs have been incurred; 3) the acquisition construction or production activities
necessary to bring the asset to its intended use or sales have been initiated.
(2) Where the acquisition and construction or production process of assets eligible for capitalization are
interrupted abnormally and the interruption period lasts for more than 3 months the capitalization of the borrowing
costs shall be suspended. The borrowing costs incurred during such period shall be recognized as expenses of the
current period until the asset’s acquisition and construction or production activity restarts.
(3) When the assets acquired constructed or produced qualified for capitalization conditions are ready for
intended use or sales the capitalization of the borrowing costs shall be ceased.
3. Capitalization rate and amount of borrowing costs
In case of special borrowing for the acquisition & construction or production of assets eligible for capitalization
conditions interest income to be capitalized shall be recognized after deducting the bank interests for the unused
portion or the investment income for short-term investment from the interest costs (including recognized
depreciation or amortization of premium under effective interest method) actually occurred in the current period of
specific borrowing. Where a general borrowing is used for the acquisition construction or production of assets
eligible for capitalization it shall determine the capitalization amount of interests on the general borrowing by
multiplying the weighted average asset expenses of the part of the accumulative asset expenses minus the special
borrowings by the capitalization rate of the general borrowings used.
19. Intangible assets
(1) Service life and its determination basis estimation amortization method or review procedure
1. Intangible assets include land use rights use right for sea area emission right patented technology and
management software and so on which are initially measured according to cost.
2. Any intangible asset with a limited service life shall be amortized in a systematic and rational manner based
on the expected realization method of economic benefits related to it within its service life; where the expected
realization method cannot be confirmed reliably the straight-line method shall be adopted. Details are as follows:
Items Useful life and determination basis Amortization method
Land use right 15-50 years useful life registered on the land use certificate Straight-line method
Proprietary technology 6-10 years estimated economic useful life Straight-line method
Management software 5-10 years estimated economic useful life Straight-line method
Pollution discharge right 5-20 years useful life registered on the certificate of titles Straight-line method
Sea areas use right 1-50 years useful life registered on the certificate of titles Straight-line method
(2) Collection scope of R&D expenditure and related accounting treatment methods
(1) Personnel labor expenses
Personnel labor expenses include the Company’s R&D personnel’s wages and salaries basic pension insurance
premiums basic medical insurance premiums unemployment insurance premiums work-related injury insurance
premiums maternity insurance premiums and housing provident fund as well as the labor costs of external R&D
personnel.If R&D personnel serve on multiple R&D projects at the same time the labor expenses shall be identified
based on the working time records of the R&D personnel for each R&D project provided by the Company’s
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management department and allocated proportionally among the different R&D projects.For personnel directly engaged in R&D activities and external R&D personnel who are also engaged in non-
R&D activities the Company will allocate the actual labor expenses incurred by the R&D personnel in different
positions between R&D expenses and production and operating expenses based on reasonable methods such as the
proportion of actual working hours based on the working hour records of the R&D personnel in different positions.
(2) Direct investment expenses
Direct investment expenses refer to the actual expenses incurred by the Company in implementing R&D
activities. Including: 1) directly consumed materials fuel and power costs; 2) R&D and manufacturing costs of
molds and process equipment used for intermediate tests and product trials purchase costs of samples prototypes
and general testing means that do not constitute fixed assets and inspection costs of trial products; 3) operating
maintenance adjustment inspection testing and repair of instruments and equipment used in R&D activities.
(3) Depreciation expenses and long-term deferred expenses
Depreciation expenses refer to the depreciation of instruments equipment and buildings in use used for R&D
activities.For instruments equipment and buildings in use that are used for R&D activities and are also used for non-
R&D activities necessary records shall be made on the use of such instruments equipment and buildings in use
and the actual depreciation incurred shall be allocated between R&D expenses and production and operating
expenses using a reasonable method based on factors such as actual working hours and area used.Long-term deferred expenses refer to the long-term deferred expenses incurred during the renovation
retrofitting decoration and repair of R&D facilities which are aggregated based on actual expenditures and
amortized evenly over the specified period.
(4) Intangible assets amortization expenses
Intangible assets amortization expenses refer to the amortization expenses of software intellectual property
non-patented technologies (proprietary technologies licenses designs and calculation methods etc.) used in R&D
activities.
(5) Design expenses
Design expenses refer to the expenses incurred in the conception development and manufacture of new
products and new processes the design of processes technical specifications procedures and operating
characteristics including related costs incurred in creative design activities to obtain innovative creative and
breakthrough products.
(6) Equipment debugging and testing expenses
Equipment debugging and testing expenses refer to the expenses incurred in R&D activities during tooling
preparation including the costs incurred in developing special and dedicated production machines changing
production and quality control procedures or formulating new methods and standards.Expenses incurred for routine tooling preparation and industrial engineering for large-scale batch and
commercial production are not included in the collection scope.
(7) Commissioned external R&D expenses
Commissioned external R&D expenses refer to the expenses incurred when the Company entrusts other
domestic or foreign institutions or individuals to carry out R&D activities (the results of the R&D activities are
owned by the Company and are closely related to the Company’s main business operations).
(8) Other expenses
Other expenses refer to other expenses directly related to R&D activities in addition to the above expenses
including technical book and material fees material translation fees expert consultation fees high-tech R&D
insurance premiums retrieval demonstration review appraisal and acceptance fees of R&D results application
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fees registration fees agency fees for intellectual property rights conference fees travel expenses communication
expenses etc.The expenditure in the research stage of internal research and development projects is included in the current
gain and loss. The expenditures incurred during the development of an internal R&D project shall be recognized as
intangible assets if they simultaneously meet the following conditions: (1) It is technically feasible to complete the
intangible assets so that they can be used or sold; (2) it is intended to finish and use or sell the intangible assets; (3)
the ways for intangible assets to generate economic benefits shall be proven useful including the way to prove that
there is a potential market for the products manufactured with the intangible assets or there is a potential market for
the intangible assets or the intangible assets will be used internally; (4) enough technical and financial resources
and other resources are available to support the development of such intangible assets and the Company is able to
use or sell such intangible assets; (5) the expenses incurred from developing the intangible asset can be reliably
measured.
20. Impairment of long-term assets
Long-term assets such as long-term equity investment investment properties measured by the cost model
fixed assets construction in progress right-of-use assets and intangible assets with limited service lives shall be
evaluated for their recoverable amount in case of any sign of impairment at the balance sheet date. For goodwill
formed by business combination and intangible assets with uncertain service life an impairment test should be
carried out every year regardless of whether there is a sign of impairment. Goodwill impairment testing must be
done in combination with the asset group or asset group portfolio to which it is linked.Where the recoverable amount of asset is lower than its carrying amount the Company shall recognize the
provision for asset impairment based on the difference and recognize such loss into the current gains and losses.
21. Long-term deferred expenses
Long-term deferred expenses refer to all expenses that have been paid and have an amortization period of more
than one year (excluding one year). Long-term deferred expenses are recorded at the actual incurred amount and
amortized on an average basis by stages over the beneficial period or prescribed period. In case that long-term
deferred expense items cannot benefit the future accounting periods the amortized value of such unamortized items
shall be fully transferred into the current gain and loss.
22. Contract liabilities
The Company presents contract assets or liabilities in the balance sheet based on the relation between
performance obligation and customer payment. The Company will record the net amount of contract assets and
contract liabilities under the same contract after they are set off against each other.The Company presents the obligation to transfer goods to the customer for considerations received or
receivable from the customer as a contract liability.
23. Employee remuneration
Employee remuneration includes short-term remuneration post-employment benefits dismissal benefits and
other long-term employee benefits.
(1) Accounting treatment method for short-term remuneration
The actual short-term remuneration in the accounting period when employees offer services for the Company
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will be recognized as liabilities and included in current gain and loss or relevant asset cost.
(2) Accounting treatment method of post-employment benefits
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) During the accounting period when an employee provides services to the Company the amount to be
deposited according to the defined contribution plan shall be recognized as the liability and recorded into the current
gain and loss or the cost of the relevant assets.
(2) The accounting treatment for a defined benefit plan generally includes the following steps:
1) In accordance with the projected unit credit method demographic and financial variables are estimated using
unbiased and consistent actuarial assumptions the obligations arising from the defined benefit plan are measured
and the period for the relevant obligation is determined. In the meantime the obligations arising from the defined
benefit plan are discounted to determine the present value and current cost of service of the defined benefit plan.
2) Where the defined benefit plan involves any assets the deficit or surplus resulting from the present value of
obligations in the defined benefit plan minus the fair value of assets shall be recognized as net liabilities or net assets
of the defined benefit plan. Where the defined benefit plan has any surplus the Company will measure the net assets
of the defined benefit plan based on the surplus or asset limit of the defined benefit plan (whichever is the lower);
3) At the end of the period the Company shall recognize the cost of employee remuneration as cost of service
the net interest of net liabilities or net assets of the defined benefit plan and changes arising from the re-measurement
of net liabilities or net assets of the defined benefit plan in which the cost of service and net interest of net liabilities
or net assets of the defined benefit plan are recorded in the current gain and loss or relevant asset cost changes
arising from the re-measurement of net liabilities or net assets of the defined benefit plan are recorded in other
comprehensive incomes and is not allowed to be carried back to gains or losses during the subsequent accounting
period but the amounts recognized in other comprehensive incomes can be transferred within the equity scope.
(3) Accounting treatment method for dismissal benefits
Where dismissal benefits are provided to employees liabilities in employee remuneration are recognized and
included in the current gain and loss when: (1) the Company is not in a position to unilaterally withdraw dismissal
benefits provided under termination plans or layoff proposals; (2) when the Company recognizes the costs or
expenses related to restructuring involving the payment of dismissal benefits.
(4) Accounting treatment method for other long-term employee benefits
Where the Company provides other long-term employee benefits for its employees and the employee reaches
the conditions of the defined benefit plan accounting treatment shall be adopted based on relevant provisions of the
defined benefit plan. For long-term employee benefits other than the aforesaid ones the accounting treatment should
be conducted in accordance with relevant provisions of the defined benefit plan. In order to simplify relevant
accounting treatments the employee remuneration cost resulting from other long-term employee benefits shall be
recognized as cost of service the total net amount of component items including net interest of net liabilities or net
asset of other long-term employee benefits as well as changes arising from re-measurement of net liabilities or net
asset of other long-term employee benefits and so on is recorded in current gain and loss or relevant asset cost.
24. Provisions
1. As the obligations arising from contingencies such as external guarantees litigation matters product quality
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assurance and loss-making contracts become current obligations of the company the performance of such
obligations is likely to result in the outflow of economic benefits from the company and the amount of such
obligations can be measured reliably the Company shall recognize such obligations as provisions.
2. The Company initially measures the provisions according to the best estimate of expenditures required to
fulfill relevant current obligations and reviews the carrying amount of the provisions on the balance sheet date.
25. Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement according to business types
1. Revenue recognition principle
The Company assesses the contract from the commencement date of the contract and recognizes each
individual performance obligation included by the contract and determines whether each individual performance
obligation will be fulfilled during a certain period or at a certain time point.It will constitute performance of the obligation in a certain period of time if any of the following conditions
are met; otherwise it will constitute performance of obligation at a certain time point: (1) the customer obtains and
consumes economic benefits arising from contract performance by the Company; (2) the customer can control goods
in progress during the process of contract performance by the Company; (3) goods arising from contract
performance by the Company have irreplaceable purposes and the Company is entitled to receive payment for
accumulatively completed performance proportion to date throughout the contract term.If the performance obligations are performed within the specified period the Company will recognize the
income within this period in accordance with the progress of the contract’s performance. If the performance progress
cannot be determined reasonably and the costs incurred are expected to be compensated the income will be
recognized according to the costs incurred until the performance progress is determined reasonably. If the
performance obligations are performed at a time point the Company will recognize the income at the time when
the customer obtains control power over goods or services. When judging whether the customer has already obtained
the right of control over goods the Company shall consider the following items: (1) the Company has the right to
receive payment currently; namely the customer assumes the obligation of making payment currently in regards to
the goods; 2) the Company has already transferred the legal ownership of the goods to the customer; namely the
customer has already obtained the legal ownership of such goods; 3) the Company has already transferred the
material object of the goods to the customer namely the customer has already obtained such goods in the material
object; 4) the Company has already transferred the significant risk and consideration of the property in the goods to
the customer namely the customer has already obtained the significant risk and consideration of the property in
the goods; (5) the customer has accepted such goods; (6) other signs that indicate the customer has already obtained
the control over goods.
2. Revenue measurement principles
(1) The income shall be measured by the Company according to the transaction price apportioned to each single
performance obligation. Transaction price refers to the amount of consideration the Company expects to receive for
the transfer of goods or services to the customer but it does not include payments received on behalf of the third
party or funds to be returned to the customer.
(2) In case of variable consideration in contract the Company will determine the best estimate of variable
consideration in line with the expected or most possible amount but the transaction price that contains variable
consideration will not exceed the amount of accumulated recognized income that is least likely to be reversed when
relevant uncertainties are removed.
(3) If there is significant financing in the contract the Company shall determine the transaction price according
to the amount payable in cash when the client obtains control of the goods or services. The difference between the
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transaction price and contract consideration is amortized by the effective interest method during the term of the
contract. On the contract commencement date if the Company estimates that the time between the customer’s
acquisition of control over goods or services and the payment of the price by the customer will not exceed one year
the significant financing in the contract shall not be considered.
(4) If there are two or more performance obligations in the contract at the beginning of the contract the
Company shall allocate the transaction price to each separate performance obligation according to the relative
proportion of the stand-alone selling price of the goods promised by each performance obligation.
3. Specific methods for revenue recognition
The Company mainly sells oil refining products chemical products PTA polyester chip polyester yarn and
film and so forth fulfilling its performance obligation at a certain time point. Proceeds from domestic sales are
recognized when the Company has delivered the products to the buyer the amount of product sales revenue has
been determined the payment for goods has been recovered or the collection voucher has been obtained and the
relevant economic benefits are likely to flow in. Proceeds from overseas market sales are recognized when the
Company has declared the products at the customs and obtained the bill of lading according to the contract the
amount of product sales revenue has been determined the payment for goods has been recovered or the collection
voucher has been obtained and the relevant economic benefits are likely to flow in.
26. Contract acquisition costs and contract performance costs
Where the incremental cost incurred by the Company to acquire the contract is expected to be recovered it is
recognized in the form of contract acquisition cost as an asset. The contract acquisition cost for which the
amortization period does not exceed one year shall be directly included in the current gain and loss as incurred. The
costs incurred by the Company for performing the contract if not within the applicability scope of relevant standards
relating to inventories fixed assets or intangible assets can be recognized as an asset within the contract
performance cost if the following conditions are met:
1. The cost is related to a current contract or a contract to be obtained including direct labor cost direct
material/manufacture cost (or similar costs) cost to be undertaken by the customer and other costs incurred under
the contract;
2. The cost increases the resources available to the Company to fulfill performance duties in the future;
3. The costs are expected to be recovered.
Assets related to contract cost are amortized on the same basis as recognition of revenue of goods or services
related to the asset and recognized in current gain and loss.If the carrying amount of assets relating to contract cost is higher than the remaining consideration expected to
be obtained due to the transfer of goods or services relating to the assets minus the estimated cost to be incurred
the Company accrues impairment reserves for the excess portion and recognizes it as an asset impairment loss. If
the factors causing the impairment of the prior period change and make the remaining consideration expected to be
obtained due to the transfer of goods or services relating to the assets minus the estimated cost to be incurred higher
than the carrying amount of the asset the withdrew asset provision for impairment shall be reversed and recorded
in the current gains or losses but the carrying amount of the asset after reversion shall not exceed the carrying
amount of the asset at the reversion date under the condition of not withdrawing the provision for impairment.
27. Government grants
1. Government grants are recognized when both of the following conditions are met: (1) the Company is able
to meet the conditions attached to the government grants; (2) the Company can receive government grants. In the
case of a monetary asset the government grants shall be measured according to the amount received or accrued. In
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the case of a non-monetary asset the government grants shall be measured at fair value; where the fair value cannot
be reliably obtained it shall be measured in accordance with the nominal amount.
2. Judgment basis and accounting method for asset-related government grants
Government grants or subsidies that are required by government documents to be used for the acquisition or
other formation of long-term assets are classified as asset-related government grants. If the government documents
are not clear judgment shall be made on the basis of the basic conditions that must be met to obtain the grants and
those that are based on the acquisition construction or other formation of long-term assets are treated as asset-
related government grants. Government grants relating to the assets are either written off against the carrying
amount of the relevant assets or recognized as deferred income. The government grants recognized as deferred
income shall be recorded in the gain and loss on a reasonable and systematic basis over the service life of relevant
assets. The government grants measured according to notional amount shall be directly included in current gain and
loss. If the relevant asset has been sold transferred retired or damaged before the end of the service life the balance
of the relevant deferred income that has not been allocated will be transferred into the current gain and loss of asset
disposal.
3. Judgment basis and accounting method for income-related government grants
Government grants other than those related to assets will be classified into income-related government grants.For government grants that include both the asset-related and the income-related components it is difficult to
distinguish between government grants that are asset-related or income-related and such grants are generally
classified as asset-related. Income-related government grants of the Company are used for compensation for relevant
costs & expenses or losses in subsequent periods which are recognized as deferred income and recorded in current
gain and loss or offset against relevant costs in the period of recognition of relevant costs expenses or losses.Government grants for compensation for incurred relevant costs and expenses or losses are directly included in
current gain and loss or offset against relevant costs.
4. The government grants related to the daily business activities of the Company shall be recorded into other
incomes or written down related costs and expenses according to the economic and business nature. Government
grants not related to the daily activities of the Company are recorded in non-operating revenues and expenses.
5. Accounting treatment method for policy-based preferential loans with discounted interest
(1) Where the Treasury disburses the discount interest funds to the lending bank and the lending bank provides
loans to the Company at preferential policy interest rates the Company shall use the actual amount of loans received
as the entry value and calculate the borrowing costs based on the principal and the preferential policy interest rate.
(2) If the Treasury allocates the discount interest funds directly to the Company the discount interest will be
used to offset the borrowing costs.
28. Deferred tax assets/deferred income tax liabilities
1. Depending on the difference between the carrying amount and the tax base of assets or liabilities (the
difference between the tax base and the carrying amount if the tax base of items not recognized as assets or liabilities
can be determined based on tax laws) the deferred income tax assets or deferred income tax liabilities shall be
calculated and recognized based on the applicable tax rate during the expected asset recovery or liability settlement
period.
2. Deferred tax assets shall be recognized to the extent of probable taxable income used for deducting
temporary deductible difference. On the balance sheet date if there is concrete evidence indicating that it is likely
to obtain enough taxable income in the future to offset temporary deductible difference the deferred income tax
assets that were not recognized in previous accounting periods should be recognized.
3. At the balance sheet date the Company should recheck the carrying amount of deferred income tax assets.
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If it is unlikely to obtain enough taxable income to offset gains generated from the deferred income tax assets then
it is necessary to write down the carrying amount of deferred income tax assets. If it is likely to obtain enough
taxable income the deducted amount shall be recovered.
4. The current income taxes and deferred income taxes of the Company are recorded as income tax expense or
income in the current gains or losses excluding income taxes arising from: (1) business combination; (2)
transactions or events recognized directly in owner’s equity.
5. When both following conditions are met the Company will list the deferred income tax assets and deferred
income tax liabilities as net amount after offset: (1) When the Company has the legal right to settle the income tax
assets and income tax liabilities of the Company in the current period with net amount; and (2) the deferred income
tax assets and deferred income tax liabilities are related to the income tax levied by the same tax collection and
management department from the same subject of tax payment or from different subjects of tax payment but the
subject of tax payment involved intends to settle the current income tax assets and current income tax liabilities
with the net amount or obtain the assets and liquidate the liabilities simultaneously in each future important period
when the deferred income tax assets and deferred income tax liabilities are written back.
29. Lease
(1) Accounting treatment method of lease as the lessee
1. The Company as lessee
On the commencement date of the lease term the Company recognizes the lease with a lease term of no more
than 12 months and without the purchase option as a short-term lease; and recognizes the lease with lower value
when a single leased asset is brand new as a low-value asset lease. In case of a sublease or expected sublease of
lease asset the original lease will not be deemed as a low-value asset lease.For all short-term leases and low-value asset leases the Company will recognize the lease payment in the
relevant asset cost or current gain and loss under the straight-line method during each period of the lease term.In addition to the above short-term leases and low-value asset leases under simplified treatment the Company
recognizes the right-of-use assets and lease liabilities for the lease on the commencement date of the lease term.
(1) Right-of-use assets
The right-of-use assets shall be initially measured at cost. The cost includes: 1) the initial measurement amount
of the lease liability; 2. the amount of lease payment made on or before the commencement date of lease term net
of the relevant amount of used lease incentives (if any); 3. the initial direct expenses incurred by the lessee; 4)
expected cost to be incurred by the lessee for the purpose of disassembly and removal of lease assets restoration of
the site where leased assets are located or restoration of leased assets to the status as agreed in lease terms.The Company will use the straight-line method to calculate the depreciation of the right-of-use assets. Where
it is reasonably certain that the ownership of the leased assets can be obtained at the expiry of the lease term the
leased assets shall be depreciated by the Company over its remaining service life. Where it is not reasonably certain
that the ownership of the leased assets can be obtained at the time the term of the lease expires the Company shall
accrue the depreciation within the shorter of the lease period and the remaining service life of the leased assets.
(2) Lease liabilities
On the commencement date of the lease the Company recognizes the present value of outstanding lease
payments as lease liabilities. In calculating the present value of the lease payments the Company adopts the interest
rate embedded in the lease as the discount rate. If the Company is unable to determine the interest rate embedded in
the lease it will adopt the incremental borrowing rate as the discount rate. The difference between the lease payment
and its present value is treated as unrecognized financing expenses on which the interest expenses are recognized
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at the discount rate of the present value of the lease payment during each period of the lease term and included in
the current gain and loss. The variable lease payments not included in the measurement of lease liabilities shall be
included in current gain and loss when actually incurred.After the inception of the lease the Company measures lease liabilities again according to the present value of
the lease payments after the change and adjusts the carrying amount of the right-of-use asset accordingly in case of
changes in the actual fixed payment amount the expected payable amount of the guarantee residual value the index
or ratio used to determine the lease payment amount the purchase option and evaluation result or the actual exercise
situation of the lease renewal option or the termination option. Where the carrying amount of the right-of-use asset
has been reduced to zero but a further reduction is required for the lease liabilities the remaining amount shall be
included in the current gain and loss.
2. After-sale leaseback
According to the Accounting Standards for Business Enterprises No.14-Revenue the Company evaluates and
determines whether the asset transfer in the after-sale leaseback transaction belongs to sales.If the asset transfer in the after-sale leaseback transaction belongs to sales the Company will measure the right-
of-use assets formed by after-sale leaseback according to the part of the carrying amount of the original assets
related to the right-of-use obtained by leaseback and only recognize the relevant gains or losses for the right
transferred to the lessor.If the asset transfer in the after-sale leaseback transaction does not belong to sales the Company will continue
to recognize the transferred assets and at the same time recognize a financial liability equal to the transferred income
and conduct accounting treatment for the financial liability according to the Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments.
(2) Accounting treatment method of lease as the lessor
1. The Company as lessor
At the inception of the lease a lease that transfers in substance almost all risks and rewards related to the
ownership of leased assets is classified as a financing lease by the Company. Except for the financing lease others
are treated as the operating lease.
(1) Operating lease
During each period of the lease term the Company recognizes the lease receipts as rental income under the
straight-line method and the initial direct costs incurred are capitalized and amortized on the same basis as the
recognition of rental income which is included in the current gain and loss by installment. Variable lease payments
the Company acquired in connection with operating leases that are not included in the lease receipts are recognized
in the current gain and loss when actually incurred.
(2) Financing lease
At the inception of the lease the Company recognizes the financing lease receivables based on the net lease
investment (the sum of the unsecured residual value and the present value of the lease collection not received on
the first date of the lease term and discounted at the interest rate implicit in the lease) and derecognizes the financing
lease assets. During each period of the lease term the Company calculates and recognizes the interest income at the
interest rate implicit in the lease.The variable lease payments obtained by the Company that are not included in the measurement of the net
lease investment are included in the current gain and loss when actually incurred.
2. After-sale leaseback
According to the Accounting Standards for Business Enterprises No.14-Revenue the Company evaluates and
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determines whether the asset transfer in the after-sale leaseback transaction belongs to sales.If the asset transfer in the after-sale leaseback transaction belongs to sales the Company will carry out
accounting treatment on the asset purchase according to other applicable accounting standards for business
enterprises and carry out accounting treatment on the asset lease according to the Accounting Standards for
Business Enterprises No.21-Lease.If the asset transfer in the after-sale leaseback transaction does not belong to sales the Company will not
recognize the transferred assets but recognize the financial assets equal to the transferred income and conduct
accounting treatment for the financial assets according to the Accounting Standards for Business Enterprises No.22-
Recognition and Measurement of Financial Instruments.
30. Other significant accounting policy and accounting estimate
Accounting treatment methods related to repurchasing company’s shares
If the Company’s shares are purchased for reasons such as reducing the registered capital or rewarding
employees they shall be treated as treasury stock according to the actual amount paid and registered for future
reference. If the repurchased shares are cancelled the capital reserve will be offset by the difference between the
total par value of the shares calculated according to the cancelled par value and the number of cancelled shares and
the actual amount paid for the repurchase and the retained earnings will be offset if the capital reserve is insufficient;
If the repurchased shares are awarded to the employees of the Company as equity-settled shares when the
employees exercise the right to purchase the shares of the Company and pay the price the cost of the treasury stocks
delivered to the employees and the accumulated amount of capital reserve (other capital reserve) during the waiting
period will be resold and the capital reserve (equity premium) will be adjusted according to the difference.
31. Changes in significant accounting policies and accounting estimates
(1) Significant accounting policy changes
□ Applicable □ Not applicable
1. Starting from January 1 2024 the Company implemented the provisions of “Classification of CurrentLiabilities and Non-Current Liabilities” under the Accounting Standards for Business Enterprises Interpretation No.
17 issued by the Ministry of Finance. This change in accounting policy had no impact on the Company’s financial
statements.
2. Starting from January 1 2024 the Company implemented the provisions of “Disclosure of SupplierFinancing Arrangements” under the Accounting Standards for Business Enterprises Interpretation No. 17 issued by
the Ministry of Finance.
3. Starting from January 1 2024 the Company implemented the provisions of “Accounting Treatment for Saleand Leaseback Transactions” under the Accounting Standards for Business Enterprises Interpretation No. 17 issued
by the Ministry of Finance. This change in accounting policy had no impact on the Company’s financial statements.
4. Starting from December 6 2024 the Company implemented the provisions of “Accounting Treatment forQuality Guarantees Not Constituting a Single Performance Obligation” under the Accounting Standards for
Business Enterprises Interpretation No. 18 issued by the Ministry of Finance. This change in accounting policy had
no impact on the Company’s financial statements.
(2) Changes in significant accounting estimate
□ Applicable □ Not applicable
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(3) The first implementation of the new accounting standards since 2024 and the first implementation of
items related to the financial statements at the beginning of that year
□ Applicable □ Not applicable
32. Others
(1) Work safety cost
The work safety costs withdrawn by the Company in accordance with the Administrative Measures for the
Collection and Utilization of Enterprise Work Safety Funds (CZ [2022] No. 136) promulgated by the Ministry of
Finance and the Ministry of Emergency Management were charged to the costs of relevant products or current
profits or losses and also to the “special reserve”. In the case of using the withdrawn work safety costs if they
belong to cost expenditure they shall directly offset the special reserves. Where a fixed asset is formed the
expenditures incurred shall be collected under the item “Construction in Progress” and shall be recognized as a fixed
asset when the completed security project reaches the intended usable state. Moreover the special reserves shall be
written down upon the cost of the formed fixed assets and the accumulated depreciation of the same amount shall
be confirmed and such fixed assets will not be depreciated in any following period.
(2) Segment report
The Company determines the operating segment on the basis of its internal organizational structure
management requirements internal reporting system and so on. Operating segments refer to components within the
Company satisfying all the following conditions:
1. It engages in business activities from which it may earn revenues and incur expenses;
2. The management can evaluate the operating results of such components on a regular basis so as to decide
to allocate resources to them and evaluate their performance;
3. It has access to accounting information of the component such as its financial condition operation result
and cash flow.VI. Taxes
1. Main taxes and tax rates
Taxes Tax bases Tax rates
The output tax calculated based on
the revenue from sales of goods or
Value-added tax (VAT) rendering of services in accordance with the tax law net of the input tax 13% 9% 6% [Note 1]
that is allowed to be deducted in the
current period
Consumption tax The taxable sales value/volume [Note 2]
Urban maintenance and construction tax Turnover tax actually paid 7% 5%
Enterprise income tax Taxable income [Note 3]
For housing property levied on the basis
of price housing property tax is levied at
Housing property tax the balance after deducting 30% of the cost; for housing property levied on the 1.2% 12%
basis of rent housing property tax is
levied at lease income
Education surcharge Turnover tax actually paid 3%
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Local education surcharge Turnover tax actually paid 2%
[Note 1] VAT is calculated and paid at the tax rate of 13% for goods sold. Rental income and sales of liquefied
petroleum gas and steam shall be subject to VAT at the rate of 9%. Warehousing services and other businesses and
interest income shall be subject to VAT at the rate of 6%. The policy of “tax exemption credit and refund” is
implemented for export goods and the export tax rebate rate is 13%
[Note 2] Sales of fuel oil diesel and aviation kerosene are subject to consumption tax at RMB 1.2 yuan/liter. Sales
of gasoline and naphtha are subject to consumption tax at RMB 1.52 yuan/liter.[Note 3] Explanation if taxpayers are subject to different enterprise income tax rates
Taxpayers Income tax rate
The subsidiaries Zhejiang Shengyuan Chemical Fiber Co. Ltd.Ningbo Zhongjin Petrochemical Co. Ltd. Yisheng Dahua
Petrochemical Co. Ltd. Zhejiang Petroleum & Chemical Co. 15%
Ltd. Zhejiang Yongsheng Technology Co. Ltd.The subsidiaries Hong Kong Sheng Hui Limited Hong Kong
Yi Sheng Da Hua Co. Limited Yisheng New Materials
Trading Co. Limited Rongsheng Petrochemical (Hong Kong)
Limited Rongsheng Petrochemical (Singapore) Pte. Ltd. Levied at the rate stipulated by local regulations
Rongtong Logistics (Singapore) Pte. Ltd. Zhejiang Petroleum
& Chemical (Singapore) Pte. Ltd.The subsidiaries Rongxiang Chemical Fiber Co. Ltd.Rongsheng International Trade (Hainan) Co. Ltd. Dalian
Yisheng New Materials Co. Ltd. Zhejiang Rongyi Trading 20%
Co. Ltd. Zhejiang Rongyi Chemical Fiber Co. Ltd.Taxpayers other than the above-mentioned 25%
2. Tax preference
1. According to requirements in the Notice on the Continuation of the Policy of Partial Consumption Tax on
Naphtha and Fuel Oil by the Ministry of Finance People’s Bank of China and State Taxation Administration (No.
87 [2011] of the Ministry of Finance) the Notice on Improving the Tax Refund Policy of Consumption Tax for
Ethylene Aromatic Chemical Products from Naphtha and Fuel Oil by the Ministry of Finance People’s Bank of
China General Administration of Customs and State Taxation Administration (No. 2 [2013] of the Ministry of
Finance) the Interim Measures for the Refund (Exemption) of Consumption Tax for Naphtha and Fuel Oil Used in
the Production of Ethylene and Aromatic Chemical Products by the State Taxation Administration (Announcement
of the State Administration of Taxation No. 36 of 2012) and the Announcement on the Refund of Consumption Tax
for Ethylene and Aromatic Chemical Products from Naphtha and Fuel Oil by the State Administration of Taxation
and General Administration of Customs (Announcement No. 29 of 2013 of the State Administration of Taxation and
the General Administration of Customs) for naphtha and fuel oil purchased by enterprises using naphtha and fuel
oil for the production of ethylene and aromatic hydrocarbons and used for the production of ethylene and aromatic
chemical products the consumption tax included shall be refunded according to the actual quantity consumed; in
the case that the production enterprise implementing the fixed-point direct supply plan and selling naphtha and fuel
oil within the planned quantity limit with a Chinese anti-counterfeiting special VAT invoice with “DDZG” logo it
shall be exempted from consumption tax. The subsidiary Ningbo Zhongjin Petrochemical Co. Ltd. is qualified for
the tax refund and the preferential policy of refunding consumption tax paid in the procurement stage is applicable.Ningbo Zhongjin Petrochemical Co. Ltd. and Zhejiang Petroleum & Chemical Co. Ltd. implementing the fixed-
point direct supply plan meet the above conditions and the preferential policy of exemption from consumption tax
on the sales stage is applicable.According to the requirements of the Notice on Continuing the Increase of Refined Oil Consumption Tax by
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the Ministry of Finance and State Administration of Taxation (No. 11 [2015] of the Ministry of Finance) the unit
consumption tax of diesel aviation kerosene and fuel oil increase from RMB 1.1/L to RMB 1.2/L and suspension
of consumption tax continues to apply in aviation kerosene. The subsidiary Zhejiang Petroleum & Chemical Co.Ltd. enjoys the preferential policy of suspension of consumption tax for selling aviation kerosene.
2. According to the Announcement on Deepening the Reform of Value-added Tax of the Ministry of Finance
the State Administration of Taxation and the General Administration of Customs (Announcement No.39 of 2019 of
the General Administration of Taxation of the Ministry of Finance) and the Announcement on Further Strengthening
the Implementation of the Tax Refund Policy for Value-added Tax at the End of the Period of the Ministry of Finance
and the State Administration of Taxation (Announcement No.14 of 2022 of the Ministry of Finance and the State
Administration of Taxation) the tax refund system for value-added tax at the end of the period was tried out on
April 1 2019. The Company and some subsidiaries meet the relevant conditions for the tax credit refund and the
total amount of tax credit refund received in this period is RMB 467.8495 million.
3. According to the Announcement on Filing of High-tech Enterprises Recognized by Zhejiang Provincial
Accreditation Institutions in 2022 issued by the Office of the National High-tech Enterprise Accreditation
Management Leading Group subsidiaries Zhejiang Shengyuan Chemical Fiber Co. Ltd. and Zhejiang Petroleum
& Chemical Co. Ltd. have passed the high-tech enterprise accreditation and obtained the High-tech Enterprise
Certificate numbered GR202233004307 and GR202233003797 respectively. The validity period of the recognition
is 2022-2024 and the enterprise income tax is calculated and paid at a reduced rate of 15% in the current period.According to the Announcement on the Filing of the Second Batch of High-Tech Enterprises Recognized and
Reported by Dalian City Certification Organization in 2024 issued by the Office of the National High-tech
Enterprise Recognition Management Leading Group the subsidiary Yisheng Dahua Petrochemical Co. Ltd. passed
the high-tech enterprise accreditation and obtained the High-tech Enterprise Certificate with the number of
GR202421201548 which is valid from 2024 to 2026. The enterprise income tax shall be calculated and paid at the
reduced tax rate of 15% in this period.According to the Announcement on Filing the First Batch of High-tech Enterprises Recognized by Ningbo City
Authority in 2022 issued by the Office of the National High-tech Enterprise Recognition Management Leading
Group Ningbo Zhongjin Petrochemical Co. Ltd. a subsidiary has passed the high-tech enterprise accreditation
and obtained the High-tech Enterprise Certificate with the number of GR202233101251 with the validity period of
2022-2024. The enterprise income tax is calculated and paid at the reduced tax rate of 15% in the current period.
According to the Announcement on the Filing of the New Technology Enterprises Identified and Reported by
Zhejiang Provincial Certification Organization in 2024 issued by the Office of the National High-tech Enterprise
Recognition Management Leading Group Zhejiang Yongsheng Technology Co. Ltd. a subsidiary has passed the
high-tech enterprise accreditation and obtained the High-tech Enterprise Certificate with the number of
GR202433003748 with the validity period of 2024-2026. The enterprise income tax is calculated and paid at the
reduced tax rate of 15% in the current period.
4. According to the Announcement on Further Supporting the Development of Small and Micro Enterprises
and Individual Industrial and Commercial Households of the Ministry of Finance and the State Administration of
Taxation (Announcement No.12 of the Ministry of Finance and the State Administration of Taxation in 2023) the
taxable income of small and micro enterprises will be calculated at a reduced rate of 25% and their corporate income
tax will be paid at a rate of 20% which will continue to be implemented until December 31 2027. Subsidiaries
Rongxiang Chemical Fiber Co. Ltd. Rongsheng International Trade (Hainan) Co. Ltd. Dalian Yisheng New
Material Co. Ltd. Zhejiang Rongyi Trade Co. Ltd. and Zhejiang Rongyi Chemical Fiber Co. Ltd. meet the above
requirements in this period. The urban maintenance and construction tax education surcharge and local education
surcharge are levied at half the rate for small low-profit enterprises. The subsidiaries Dalian Yisheng New Material
Co. Ltd. Zhejiang Rongyi Chemical Fiber Co. Ltd. and Zhejiang Rongyi Trade Co. Ltd. meet the above
192 / 276 Full Text of 2024 Annual Report
requirements in this period.
5. According to the Announcement on the Policy of Adding and Deducting Value-added Tax for Advanced
Manufacturing Enterprises of the Ministry of Finance and State Taxation Administration (Announcement No.43 of
the Ministry of Finance and the State Administration of Taxation in 2023) from January 1 2023 to December 31
2027 advanced manufacturing enterprises are allowed to add 5% to the deductible input tax for offsetting the
payable value-added tax in the current period. In the current period subsidiaries Zhejiang Shengyuan Chemical
Fiber Co. Ltd. Yisheng Dahua Petrochemical Co. Ltd. Ningbo Zhongjin Petrochemical Co. Ltd. Zhejiang
Petroleum & Chemical Co. Ltd. and Zhejiang Yongsheng Technology Co. Ltd. are entitled to the above-mentioned
policy of adding and deducting.
6. According to the relevant provisions of the Circular of the Ministry of Finance and the State Administratio
n of Taxation on the Policies Regarding Period-End Value-Added Tax Credit Refund on the Urban Maintenance a
nd Construction Tax Education Fee Surcharge and Local Education Surcharge (Finance & Taxation [2018] No. 8
0) taxpayers implementing the period-end value-added tax credit refund are permitted to deduct the amount of the
refunded VAT from the taxable (levied) bases of the Urban Maintenance and Construction Tax the Education Fe
e Surcharge and the Local Education Surcharge. The subsidiary Zhejiang Shengyuan Chemical Fiber Co. Ltd. enj
oys this tax preference.VII. Notes to Items in the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB
Items Closing balance Opening balance
Cash on hand 1580800.25 1499665.59
Cash in bank 12624073263.80 11121148364.87
Other cash and bank balances 2207730856.40 1947607435.56
Total 14833384920.45 13070255466.02
Including: Deposited overseas 2835618399.02 2007064372.61
2. Derivative financial assets
Unit: RMB
Items Closing balance Opening balance
Paper futures contracts 55586387.34 100866121.14
Foreign exchange derivatives [Note] 420180297.83 208630666.07
Option contracts [Note] 590642.24
Total 475766685.17 310087429.45
[Note] Reclassified foreign exchange derivative instruments and paper futures contracts from trading financial
assets to derivative financial assets in accordance with the Compilation of Application Guidelines for Enterprise
Accounting Standards (2024).
193 / 276 Full Text of 2024 Annual Report
3. Accounts receivable
(1) Age analysis
Unit: RMB
Ages Closing balance Opening balance
Within 1 year (inclusive of 1 year) 6823012066.63 4552918612.20
1-2 years 1366.19 293966484.61
2-3 years 283780636.85 41283731.68
Over 3 years 33453923.37 387649.73
Total 7140247993.04 4888556478.22
(2) Classified disclosure by bad debt accrual method
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad Provision for bad debts Book balance Carryi debts
Categories CarryinProvisio ng Provisio
amoun g
Amount % to Amount n Amount % to Amoun n t amount total proporti total t proporti
on on
Receivables
with
provision 714024 100.00% 318276
6821
made on a 7993.04 286.68 4.46% 97170
488855100.00%1508223.09%4737736478.22774.563703.66
collective 6.36
basis
6821
Total 714024 100.00% 3182767993.04 286.68 4.46% 97170
488855
6478.22100.00%
1508223.09%473773
6.36774.563703.66
Provision for bad debt by combination: RMB 318276286.68
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Portfolio grouped with trade
funds of overseas subsidiaries 2829251353.58
Portfolio grouped with ages 4310996639.46 318276286.68 7.38%
Total 7140247993.04 318276286.68 4.46%
Accounts receivable of provision for bad debt by aging combination
Unit: RMB
Closing balance
Ages
Book balance Provision for bad debts Provision proportion
Within 1 year 3993760713.05 199688035.64 5.00%
194 / 276 Full Text of 2024 Annual Report
1-2 year(s) 1366.19 136.62 10.00%
2-3 years 283780636.85 85134191.05 30.00%
Over 3 years 33453923.37 33453923.37 100.00%
Subtotal 4310996639.46 318276286.68 7.38%
If the provision for bad debts of accounts receivable is accrued according to the general model of expected credit
loss:
□ Applicable □ Not applicable
(3) Bad debt reserves accrual recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Increase/Decrease
Items Opening Closing balance Accrual Recovery or reversal Write-off Others
balance
Receivables
with provision
made on a 150822774.56 167453512.12 318276286.68
collective basis
Total 150822774.56 167453512.12 318276286.68
(4) Accounts receivables and contract assets with top 5 ending balances by debtor
Unit: RMB
Closing Proportion to
Closing balance balance Closing balance
Debtors of accounts of of accounts
the closing Provision for bad
receivable and balance of debts of accounts receivable contract accounts receivable
assets contract assets receivable (%)
Sinopec Sales Co. Ltd.East China Branch 1474122217.22 1474122217.22 20.65% 73706110.86
VITOL ASIA PTE LTD 538699642.35 538699642.35 7.54%
GLENCORE
SINGAPORE PTE LTD 534143901.27 534143901.27 7.48%
ITG Resources
522229766.09522229766.097.31%
(Singapore) Pte Ltd
Zhoushan Yushan
Petrochemical 456496581.50 456496581.50 6.39% 22824829.08
Engineering Co. Ltd.Subtotal 3525692108.43 3525692108.43 49.37% 96530939.94
195 / 276 Full Text of 2024 Annual Report
4. Receivables financing
(1) Classified presentation of receivables financing
Unit: RMB
Items Closing balance Opening balance
Bank acceptance 103225654.46 175036242.93
Subtotal 103225654.46 175036242.93
(2) Receivable financing pledged by the Company at the end of the period
Unit: RMB
Items Closing balance pledged
Bank acceptance 57470000.00
Subtotal 57470000.00
(3) Receivables financing endorsed or discounted by the company at the end of the period and not expired
yet on the balance sheet date
Unit: RMB
Items Closing balance derecognized Closing balance not derecognized
Bank acceptance 1771175650.91 0.00
Subtotal 1771175650.91 0.00
The acceptor of bank acceptance bills is a commercial bank with high credit and it is not likely that the bank
acceptance bills accepted by the acceptor will not be paid at maturity so the Company will derecognize these bank
acceptance bills that have been endorsed or discounted. However if such bills are not honored at maturity the
Company remains jointly liable to the holders in accordance with the Law of Negotiable Instruments.
5. Other receivables
Unit: RMB
Items Closing balance Opening balance
Other receivables 4345964007.66 4510228597.49
Total 4345964007.66 4510228597.49
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Closing balance Opening balance
Government funds receivable 3675348932.89 4013740226.69
Futures margin 313138787.88 317793118.68
Security deposits receivable 285638372.22 34082287.67
Paper goods transaction settlement 75500340.27 60243144.32
Petty cash receivable etc. 30929370.92 26389252.01
196 / 276 Full Text of 2024 Annual Report
Deposits for borrowings 15000000.00 85908960.00
Intercompany balances 10800000.00 10810665.07
Subtotal 4406355804.18 4548967654.44
2) Age analysis
Unit: RMB
Ages Closing balance Opening balance
Within 1 year (inclusive of 1 year) 3154663061.38 2890584356.52
1-2 years 165271254.66 1565488732.75
2-3 years 1063871496.61 44802241.88
Over 3 years 22549991.53 48092323.29
Total 4406355804.18 4548967654.44
3) Classified disclosure by bad debt accrual method
□Applicable □ Not applicable
Unit: RMB
Closing balance Opening balance
Categor Book balance Provision for bad Book balance Provision for bad
ies debts
Carryin debts Carryin
g g
Amount % to Amount % to amount Amount % to Amount % to amount total total total total
Receiva
bles with
provisio
n made 440635 100.00% 6039175804.18 96.52 1.37%
434596454896387390451022
4007.667654.44100.00%56.950.85%8597.49
on a
collectiv
e basis
Total 4406355804.18 100.00%
6039171.37%434596454896100.00%3873900.85%45102296.524007.667654.4456.958597.49
Provision for bad debt by combination: RMB 60391796.52
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Government funds receivable 3675348932.89 31803975.36 0.87%
Futures margins 313138787.88
Security deposits receivable 285638372.22 16833208.91 5.89%
Paper goods transaction 75500340.27
settlement
Petty cash receivable etc. 30929370.92 6354612.25 20.55%
Deposits for borrowings 15000000.00
Intercompany balances 10800000.00 5400000.00 50.00%
197 / 276 Full Text of 2024 Annual Report
Subtotal 4406355804.18 60391796.52 1.37%
Book balance changes with significant changes in loss provisions in the current period
Applicable □Not applicable
4)Provision for bad debts is made according to the general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
12?month Lifetime Provision for bad debts
expected credit expected credit Lifetime expected credit losses
Total
losses losses (credit (credit impaired) not impaired)
Opening balance 2257739.83 18866417.27 17614899.85 38739056.95
Opening balance in the
current period
--Transferred to stage 2 -1401879.86 1401879.86
--Transferred to stage 3 -18647363.30 18647363.30
--Reversed to stage 2
--Reversed to stage 1
Provision made in the 2001784.88 1237201.97 18413752.72 21652739.57
current period
Provision recovered or
reversed in the current
period
Provision written off in the
current period
Other changes
Closing balance 2857644.85 2858135.80 54676015.87 60391796.52
Provision proportion (%) 0.09 1.73 5.03 1.37
There is no significant provisions collected or reversed in the current period.
5) Details of the top 5 debtors with largest balances
Unit: RMB
Proportion to the Provision for bad
Debtors Nature of Closing book receivables balance Ages total balance of
debts at the
other receivables balance sheet date
Consumption tax Government funds
refund receivable receivable 1898211720.77
Within 1
year 43.08%
Zhoushan Green
Petrochemical Base Government funds
Management receivable 1045798000.00 2-3 years 23.73% 31803975.36
Committee [Note 1]
The People’s
government of Government funds 594020000.00 Within 1 13.48%
Yinong Town receivable year
Xiaoshan District
198 / 276 Full Text of 2024 Annual Report
Hangzhou [Note 2]
Zhengzhou Security deposits
Within 1
Commodity Exchange receivable petty 217812380.00
year 1-2 4.94% 660119.00
cash receivable etc. years over 3 years
Investment Promotion
Bureau of Xiaoshan Government funds 100000000.00 Within 1 District Hangzhou receivable year 2.27%
[Note 3]
Subtotal 3855842100.77 87.50% 32464094.36
[Note 1] As of the date of approval for issuing the financial statements the Company has received subsidies
of RMB 442761584.00
[Note 2] As of the date of approval for issuing the financial statements the Company has received subsidies
of RMB 500000000.00
[Note 3] As of the date of approval for issuing the financial statements the Company has received subsidies
of RMB 100000000.00
6. Advances paid
(1) Advance payments presented by age
Unit: RMB
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 1335495318.36 98.60% 1433838902.86 96.02%
1-2 years 7472652.90 0.55% 51983340.46 3.48%
2-3 years 11361398.90 0.84% 7490222.54 0.50%
Over 3 years 190338.32 0.01%
Total 1354519708.48 100.00% 1493312465.86 100.00%
Explanation of the reasons why the prepayment with an age of more than one year and an important amount has not
been settled in time:
There were no significant prepayments aged over 1 year at the end of the period.
(2) Details of the top 5 debtors with largest balances
Proportion to the total
Debtors Book balance balance of advances paid
(%)
Zhenhai Customs of the People’s Republic of China 725754048.09 53.58%
Xinao Xinneng (Zhejiang) Energy Trading Co. Ltd. 69263345.84 5.11%
Chimet S.p.A 51716840.76 3.82%
Dalian Fujia Dahua Petroleum & Chemical Co. Ltd. 39989765.04 2.95%
Sinopec Chemical Sales (Tianjin) Co. Ltd. 26921706.62 1.99%
Subtotal 913645706.35 67.45%
199 / 276 Full Text of 2024 Annual Report
7. Inventories
Whether the Company is subject to the disclosure requirements of the real estate industry
No
(1) Classification of inventories
Unit: RMB
Closing balance Opening balance
Items
Book balance Provision for Carrying write-down amount Book balance
Provision for Carrying
write-down amount
Raw 24248974369.5 24248974369.5 38274190347.5 339286.40 38273851061.1materials 0 0 6 6
Work in 14299190002.9 75164691.08 14224025311.8 15957096293.9process 5 7 6 9449010.11
15947647283.8
5
Goods on
hand 5642813644.18 68717646.29 5574095997.89 7425770624.07
103851876.7
47321918747.33
Goods
dispatched 353746058.32 19945065.67 333800992.65 43141279.48 7872975.73 35268303.75
Work in
process - 2162886.07 2162886.07 252182.13 252182.13
outsourced
Low-value
consumable 183875058.61 183875058.61 154719763.85 154719763.85
s
Total 44730762019.6 163827403.0 44566934616.5 61855170491.0 121513148.9 61733657342.03 4 9 5 8 7
(2) Inventory depreciation reserves and contract performance cost provision for impairment
Unit: RMB
Increase in the current period Decrease in the current period
Items Opening Closing balance Accrual Others Reversal or transfer-out Others
balance
Raw materials 339286.40 339286.40
Work in process 9449010.11 75164691.08 9449010.11 75164691.08
Goods on hand 103851876.74 68717646.29 103851876.74 68717646.29
Goods
dispatched 7872975.73 19945065.67 7872975.73 19945065.67
Total 121513148.98 163827403.04 121513148.98 163827403.04
Determination basis of net realizable value and reasons for the reversal or transfer-out of provision for inventory
write-down:
Items Determination basis of net realizable
Reasons for reversal of Reasons for transfer-out of
value provision for inventory write- provision for inventory down write-down
Estimated selling price of relevant Net realizable value of Inventories with provision for
Raw materials finished goods less cost to be incurred inventories with provision for inventory write-down made in
work in process upon completion estimated selling inventory write-down made in preceding period were
expenses and relevant taxes and preceding period increased used/sold in the current
200 / 276 Full Text of 2024 Annual Report
surcharges period.Finished goods Estimated selling price of relevant Net realizable value of Inventories with provision for
inventory finished goods less estimated selling inventories with provision for inventory write-down made in
expenses and relevant taxes and inventory write-down made in preceding period were sold in
goods dispatched surcharges preceding period increased the current period.
8. Other current assets
Unit: RMB
Items Closing balance Opening balance
Input VAT to be credited 5238332408.47 4338748642.91
Prepaid enterprise income tax 562819947.18 797324.80
Prepaid consumption tax 957583006.60
Total 5801152355.65 5297128974.31
9. Long-term equity investment
201 / 276 Full Text of 2024 Annual Report
Unit: RMB
Increase and decrease in the current period
Opening Closing Closing Opening balance of Cash balance balance of
Investees balance provision Investme Investme
Investment Adjustment
income in other Changes dividend/
Provisio (carryin provision
(carrying for nts nts in other Profit
n for Others g for
amount) impairment increased decreased
recognized under comprehen equity declared for impair amount impairmeequity method sive income distribution ment ) nt
I. Joint ventures
II. Associate
Zhejiang
Yisheng 2704956 64376380.08 -420818.12 276891Petrochemical 582.65 2144.61
Co. Ltd.Ningbo
Hengyi 1675635 -
Trading Co. 05.10 -81450853.13 8239250.7
778734
101.26
Ltd.Zhejiang
Xiaoshan
Rural 2265598 146562823 269000
Commercial 668.75 291067802.78 .92 13228639.60 0655.85
Bank Co.Ltd.Hainan
Yisheng 3483137 -
Petrochemical 669.72 73959625.39 27464169.
352963
043126.07
Co. Ltd.ZPC ENN
(Zhoushan) 8937867.92 5271856.59
142097
Gas Co. Ltd. 24.51
Zhejiang
Dingsheng
Petrochemical 4379460 610568
Engineering 3.87
17262221.8425.71
Co. Ltd.Zhejiang 2966412
Derong 10.33 -130102054.52
2430073168969.16228.97
Chemical Co.
202 / 276 Full Text of 2024 Annual Report
Ltd.Zhoushan
ZPC 7425563 243306.5 749809
Zhougang 8.79 12032024.11 5 11550000.00 69.45
Tug Co. Ltd.Zhejiang
Dongjiang
Green
Petrochemical 1113123
Technology 99.95 -12511596.65
988008
03.30
Innovation
Center Co.Ltd.Ningbo
Coastal Public 5511703.Pipeline Co. 40 -840665.34
467103
8.06
Ltd.Zhejiang
Zhenshi Port 2200159 275284
Services Co. 4.48 5526808.90 03.38
Ltd.Subtotal 9183711 110438586 2673379 951663444.96 244591550.05 .05 .71 24778639.60 6321.17
Total 9183711 110438586 2673379 951663444.96 244591550.05 .05 .71 24778639.60 6321.17
203 / 276 Full Text of 2024 Annual Report
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□ Applicable □ Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable □ Not applicable
10. Investment properties
(1) Investment properties under the cost measurement mode
□Applicable □ Not applicable
Unit: RMB
Items Buildings and Land use right Construction in structures progress Total
I. Original carrying
amount
1. Opening balance 14286632.00 14286632.00
2. Increase in the
current period
(1) Outsourcing
(2) Transfers from
inventories/fixed
assets/construction in
progress
(3) Increase due to
business merger
3. Decrease in the
current period
(1) Disposal
(2) Other transfer-out
4. Closing balance 14286632.00 14286632.00
II. Accumulated
depreciation and
accumulated
amortization
1. Opening balance 3891057.40 3891057.40
2. Increase in the
current period 271446.00 271446.00
(1) Accrual or
amortization 271446.00 271446.00
3. Decrease in the
current period
(1) Disposal
(2) Other transfer-out
4. Closing balance 4162503.40 4162503.40
III. Provision for
impairment
1. Opening balance
2. Increase in the
204 / 276 Full Text of 2024 Annual Report
current period
(1) Accrual
3. Decrease in the
current period
(1) Disposal
(2) Other transfer-out
4. Closing balance
IV. Carrying amount
1. Closing carrying
amount 10124128.60 10124128.60
2. Opening carrying
amount 10395574.60 10395574.60
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□ Applicable □ Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable □ Not applicable
(2) Investment properties under the fair value method
□ Applicable □ Not applicable
11. Fixed assets
Unit: RMB
Items Closing balance Opening balance
Fixed assets 232497113015.70 219699679397.52
Liquidation of fixed assets
Total 232497113015.70 219699679397.52
(1) Fixed assets
Unit: RMB
Items Buildings and Transportation Other structures Machinery facilities equipment Total
I. Original
carrying amount:
1. Opening
balance 71198105232.65 194194556207.58 247878440.68 356451433.69 265996991314.60
2. Increase in the
current period 960374302.79 27583134112.75 10295155.35 37193243.29 28590996814.18
(1) Acquisition 579221816.34 1064695447.27 10295155.35 31854108.21 1686066527.17
(2) Transferred in
from construction 381152486.45 26518438665.48 5339135.08 26904930287.01
in progress
(3) Increase due to
business merger
205 / 276 Full Text of 2024 Annual Report
3. Decrease in the
current period 6277950.00 3370900.72 1680176.99 958544.59 12287572.30
(1) Disposal or
scrapping 6277950.00 3370900.72 1680176.99 958544.59 12287572.30
4. Closing balance 72152201585.44 221774319419.61 256493419.04 392686132.39 294575700556.48
II. Accumulated
depreciation
1. Opening
balance 8802448426.77 37023289144.10 198473039.46 261561634.53 46285772244.86
2. Increase in the
current period 3346746760.67 12382361050.30 13890748.89 44668980.42 15787667540.28
(1) Accrual 3346746760.67 12382361050.30 13890748.89 44668980.42 15787667540.28
3. Decrease in the
current period 2472143.26 2688142.58 372439.20 859191.54 6391916.58
(1) Disposal or
scrapping 2472143.26 2688142.58 372439.20 859191.54 6391916.58
4. Closing balance 12146723044.18 49402962051.82 211991349.15 305371423.41 62067047868.56
III. Provision for
impairment
1. Opening
balance 11539672.22 11539672.22
2. Increase in the
current period
(1) Accrual
3. Decrease in the
current period
(1) Disposal or
scrapping
4. Closing balance 11539672.22 11539672.22
IV. Carrying
amount
1. Closing carrying
amount 60005478541.26 172359817695.57 44502069.89 87314708.98 232497113015.70
2. Opening
carrying amount 62395656805.88 157159727391.26 49405401.22 94889799.16 219699679397.52
(2) Fixed asset with certificate of titles being unsettled
Unit: RMB
Items Carrying amount Reasons for unsettlement
Buildings and structures – In processing
5373012606.44
ZPC tank farm supporting buildings etc.Buildings and structures – In processing
577467823.24
ZPC dormitory
Buildings and structures – In processing
366078749.60
Shengyuan Chemical Fiber Polymerization Building etc.Buildings and structures – In processing
440010084.35
Yisheng Dahua office building etc.
206 / 276 Full Text of 2024 Annual Report
Buildings and structures – Niluoshan power station In processing
supporting facilities 127414048.68
Buildings and structures – In processing
84815315.44
Zheyou Technology flow workshop
Buildings and structures – In processing
41963613.88
Yongsheng Technology film warehouse etc.Subtotal 7010762241.63
(3) Impairment test of fixed assets
□ Applicable □ Not applicable
12. Construction in progress
Unit: RMB
Items Closing balance Opening balance
Construction in progress 42746526646.14 40987208589.89
Construction materials 1289605450.14 833462480.70
Total 44036132096.28 41820671070.59
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Items Book Provision for Carrying
balance impairment amount Book balance
Provision for Carrying
impairment amount
1.4 million tons of
ethylene and
downstream
chemical
equipment 154468029 15446802951 15402756124 15402756124
(product structure 51.63.63.76.76
optimization of
the phase II
project)
Public projects
and supporting 899607272. 899607272.74 14708733890 14708733890
facilities 74 .06 .06
Functional
polyester film
expansion project 964148483.with an annual 95 964148483.95
1206752266.1206752266.5757
output of 250000
tons
High performance 129501881 12950188181 2930448031. 2930448031.resin project 81.48 .48 11 11
High-end new 314018891 3140188910.material project 0.32 32 888295228.78 888295228.78
Jintang New 433576998 4335769983.Material Project 3.60 60 507816831.97 507816831.97
207 / 276 Full Text of 2024 Annual Report
Piecemeal 500982086 5009820862. 5342406216. 5342406216.projects 2.42 42 64 64
Subtotal 427465266 42746526646 40987208589 4098720858946.14 .14 .89 .89
208 / 276 Full Text of 2024 Annual Report
(2) Changes in major construction in progress in the current period
Unit: RMB
Amount of
Other Accumul Comp Accumulated borrowing
Opening Increase in Transferre decreases letion amount of cost Annual Project Budgets the current d to fixed in the Closing ated perce borrowing capitalizati capitaliza Source of balance period assets current balance input to budget ntage cost on in the tion rate
funds
period (%) capitalization current
period
1.4 million tons of
ethylene and
downstream
chemical 344851
equipment 70000.0 15402756 37369780 36929311 1544680 99.38% 95.00 962824061.5 445843729 3.27% Bank loans
(product structure 0 124.76 18.78 91.91 2951.63 % 3 .40 and others
optimization of
the phase II
project)
Public projects
and supporting 14708733 61422567 19951383 8996072 798152540.9 353844678 Bank loans
facilities 890.06 95.51 412.83 72.74 5 .49
2.92% and others
High performance 19235380000.0 29304480 10019740 1295018resin project 31.11 150.37 8181.48 74.06%
70.00 335333463.3 304343905 2.95% Bank loans
0 % 3 .73 and others
High-end new 64146910000.0 888295228 22518936 3140188 5.38% 5.00% 32061910.52 30195059. 2.95% Bank loans material project 0 .78 81.54 910.32 23 and others
Jintang New 79538570000.0 507816831 38279531 4335769Material Project .97 51.63 983.60 5.99% 5.00% 81502969.92
58764822. Bank loans
016
3.26% and others
197406
Subtotal 030000. 34438050 25978821 23644314 3677255 2209874946 11929921
00106.68797.83604.747299.77.2595.01
209 / 276 Full Text of 2024 Annual Report
(3) Impairment test of construction in progress
□ Applicable □ Not applicable
(4) Engineering materials
Unit: RMB
Closing balance Opening balance
Items
Book balance Provision for Carrying impairment amount Book balance
Provision for Carrying
impairment amount
Special 1019693874.99 1019693874.99
materials 507367195.93 507367195.93
Special 269911575.15 269911575.15
equipment 326095284.77 326095284.77
Subtotal 1289605450.14 1289605450.14 833462480.70 833462480.70
13. Right-of-use assets
(1) Situation of right-of-use assets
Unit: RMB
Items Buildings and structures Total
I. Original carrying amount
1. Opening balance 285203745.16 285203745.16
2. Increase in the current period
3. Decrease in the current period 4351954.18 4351954.18
(1) Lease expiration 4351954.18 4351954.18
4. Closing balance 280851790.98 280851790.98
II. Accumulated depreciation
1. Opening balance 85101604.00 85101604.00
2. Increase in the current period 23864319.63 23864319.63
(1) Accrual 23864319.63 23864319.63
3. Decrease in the current period 4351954.20 4351954.20
(1) Lease expiration 4351954.20 4351954.20
4. Closing balance 104613969.43 104613969.43
III. Provision for impairment
1. Opening balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Closing balance
IV. Carrying amount
210 / 276 Full Text of 2024 Annual Report
1. Closing carrying amount 176237821.55 176237821.55
2. Opening carrying amount 200102141.16 200102141.16
(2) Impairment test of right-of-use assets
□ Applicable □ Not applicable
14. Intangible assets
(1) Intangible assets
Expiration of ownership rights (intangible assets)
Unit: RMB
Pollution
Items Land use right Proprietary Management Sea area use technology software discharge right Total right
I. Original
carrying
amount
1. Opening
balance 7921588443.27 5879510.85 60447191.09 113384688.14 38477963.94 8139777797.29
2. Increase in
the current 1377410801.15 2692045.23 26026942.53 11529502.88 1417659291.79
period
(1) Acquisition 1377410801.15 2692045.23 26026942.53 11529502.88 1417659291.79
(2) Internal
R&D
(3) Increase
due to business
merger
3. Decrease in
the current 204043000.00 735000.00 17673133.56 222451133.56
period
(1) Disposal 204043000.00 204043000.00
(2) Ownership
Expiry 735000.00 17673133.56 18408133.56
4. Closing
balance 9094956244.42 5879510.85 63139236.32 138676630.67 32334333.26 9334985955.52
II.Accumulated
amortization
1. Opening
balance 854803056.18 4543032.90 29034219.45 101858356.39 20608719.93 1010847384.85
2. Increase in
the current 185925227.56 188679.24 6854631.47 10948492.68 1629796.86 205546827.81
period
(1) Accrual 185925227.56 188679.24 6854631.47 10948492.68 1629796.86 205546827.81
3. Decrease in
the current 5781218.38 735000.00 17673133.56 24189351.94
period
211 / 276 Full Text of 2024 Annual Report
(1) Disposal 5781218.38 5781218.38
(2) Ownership
Expiry 735000.00 17673133.56 18408133.56
4. Closing
balance 1034947065.36 4731712.14 35888850.92 112071849.07 4565383.23 1192204860.72
III. Provision
for impairment
1. Opening
balance
2. Increase in
the current
period
(1) Accrual
3. Decrease in
the current
period
(1) Disposal
4. Closing
balance
IV. Carrying
value
1. Closing
carrying value 8060009179.06 1147798.71 27250385.40 26604781.60 27768950.03 8142781094.80
2. Opening
carrying value 7066785387.09 1336477.95 31412971.64 11526331.75 17869244.01 7128930412.44
(2) Land use right for which the certificate of title has not been obtained
Unit: RMB
Items Carrying amount Reasons for unsettlement
Land use right 818673984.43 In processing
Subtotal 818673984.43
(3) Impairment test of intangible assets
□ Applicable □ Not applicable
15. Long-term deferred expenses
Unit: RMB
Items Opening balance Increase Amortization Other decreases Closing balance
Improvement
expenditures of
fixed assets leased 45701.13 45701.13
in under operating
leases
Total 45701.13 45701.13
212 / 276 Full Text of 2024 Annual Report
16. Deferred tax assets/deferred income tax liabilities
(1) Deferred tax assets before offset
Unit: RMB
Closing balance Opening balance
Items Deductible temporary
difference Deferred tax assets
Deductible temporary
difference Deferred tax assets
Provision for
impairment of assets 436276327.17 74249543.63 246050247.19 42463572.53
Unrealized profits from
internal transactions 99854988.15 18235948.62 63697197.61 13460223.08
Deductible
unrecovered losses 8534688742.74 1550960099.21 6398196587.74 1157432552.84
Changes in fair value
of held-for-trading
financial instruments 331739047.49 49815680.12 137921940.29 21006601.04
and derivative financial
instruments
Deferred income 191230102.07 29528959.74 186812473.21 28932982.09
Lease liabilities 182212003.42 27331800.51 195424408.50 29313661.28
Total 9776001211.04 1750122031.83 7228102854.54 1292609592.86
(2) Deferred tax liabilities before offset
Unit: RMB
Closing balance Opening balance
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
One-time pre-tax
deduction of long-term 10046188810.96 1506928321.65 10872084425.53 1630812663.83
assets
Capitalized interest on
borrowings for long-
term asset construction
of subsidiaries from
parent company as 2066452064.88 319599270.81 2147934662.52 326849061.47
paid-in capital at the
consolidated financial
statements level
Changes in fair value
of held-for-trading
financial instruments 432807147.83 64977475.17 309098071.08 49549153.55
and derivative financial
instruments
Right-of-use assets 168620191.32 25293028.70 184427099.32 27664064.90
Government grants 694020000.00 173505000.00 744000000.00 186000000.00
Total 13408088214.99 2090303096.33 14257544258.45 2220874943.75
213 / 276 Full Text of 2024 Annual Report
(3) Deferred tax assets or liabilities presented as net amount after offset
Unit: RMB
Deferred tax assets Deferred tax Deferred tax assets Deferred tax
Items offset by deferred tax assets/liabilities after offset by deferred tax assets/liabilities after
liabilities offset liabilities offset
Deferred tax assets 512945754.55 1237176277.28 601800714.78 690808878.08
Deferred tax liabilities 512945754.55 1577357341.78 601800714.78 1619074228.97
(4) Details of unrecognized deferred income tax assets
Unit: RMB
Items Closing balance Opening balance
Deductible losses 3061760213.17 3808384773.87
Changes in fair value of held-for-trading
financial instruments and derivative 468838.23 74162385.08
financial instruments
Deferred income 7399864.22 8769120.04
Provision for impairment of assets 45827362.55 26285676.35
Lease liabilities 10610567.21 18116777.97
Total 3126066845.38 3935718733.31
(5) The deductible loss of unrecognized deferred income tax assets will expire in the following year
Unit: RMB
Maturity years Closing balance Opening balance
Year 2024 585681449.15
Year 2025 869483144.03 869483144.03
Year 2026 852118955.75 852380510.77
Year 2027 1094476141.77 1094661596.29
Year 2028 104227489.45 406178073.63
Year 2029 141454482.17
Total 3061760213.17 3808384773.87
17. Other non-current assets
Unit: RMB
Closing balance Opening balance
Items Provision Provision
Book balance for Carrying amount Book balance for Carrying amount
impairment impairment
Prepayment
s for 2936356587.96 2936356587.96 4445441053.45 4445441053.45
acquisition
of long-term
214 / 276 Full Text of 2024 Annual Report
asset
Lease value
of leased-in 990467185.82 990467185.82 411214415.96 411214415.96
silver
Total 3926823773.78 3926823773.78 4856655469.41 4856655469.41
18. Assets with ownership or use rights restricted
Unit: RMB
Closing balance Opening balance
Reasons Reasons
Items Book Carrying Type of for Book Carrying Type of for
balance amount restriction restriction balance amount restrictions s restrictions s
Deposits
for letters
of credit Deposits
bank for letters of credit
Cash and acceptance
bank 18895525 18895525 Occupied deposits for 15834003 15834003 Occupied
bank
acceptance
balances 85.00 85.00 deposits lease of 68.50 68.50 deposits silver letters of
letters of guarantee
guarantee and
and borrowings
borrowings
Mortgaged Mortgaged
Fixed 254645778 20834697 for for
assets 826.31 1958.41 Mortgage borrowings
22687501 19446428 Mortgage borrowings
and letters 1143.49 0744.52 and letters
of credit of credit
Mortgaged Mortgaged
Intangible 62294135 56298061 for for
assets 56.02 56.03 Mortgage borrowings
5608715151350745
98.07 43.17 Mortgage borrowings and letters and letters
of credit of credit
Mortgaged Mortgaged
Constructi for for
on in 29474930 29474930 29889674 29889674
progress 368.68 368.68
Mortgage borrowings Mortgage borrowings
and letters 426.59 426.59 and letters
of credit of credit
Receivabl
es 57470000. 57470000.Pledged for Pledged for
00 00 Pledge bank 263131.23 263131.23 Pledge bank financing acceptance acceptance
Total 292297145 24539873 26395706 23107269336.01 1068.12 4267.88 3214.01
19. Short-term borrowings
(1) Categories of short-term borrowings
Unit: RMB
Items Closing balance Opening balance
Guaranteed borrowings 40887276581.01 43817771706.43
215 / 276 Full Text of 2024 Annual Report
Credit borrowings 3203693222.22 795165061.51
Mortgaged and guaranteed borrowings 198000000.00
Total 44090969803.23 44810936767.94
20. Trading financial liabilities
Unit: RMB
Items Closing balance Opening balance
Held-for-trading financial liabilities 1269256561.53 544366956.25
Including: Fair value of leased-in silver 1269256561.53 544366956.25
Total 1269256561.53 544366956.25
21. Derivative financial liabilities
Unit: RMB
Items Closing balance Opening balance
Paper futures contracts [Note] 34655378.23 78931785.08
Total 34655378.23 78931785.08
[Note] Adjustments were made to reclassify paper futures contracts from trading financial liabilities to
derivative financial liabilities in accordance with the Compilation of Enterprise Accounting Standards Application
Guide (2024).
22. Notes payable
Unit: RMB
Items Closing balance Opening balance
Bank acceptance 3204293497.95 4195471402.63
Total 3204293497.95 4195471402.63
23. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Items Closing balance Opening balance
Payments for material purchase and operations 50482691896.90 39250503194.27
Payments for acquisition of long-term assets 8550137922.21 10493623707.11
Total 59032829819.11 49744126901.38
24. Other payables
Unit: RMB
Items Closing balance Opening balance
216 / 276 Full Text of 2024 Annual Report
Dividends payable 228000000.00
Other payables 6588756879.48 16691133504.47
Total 6588756879.48 16919133504.47
(1) Dividends payable
Unit: RMB
Items Closing balance Opening balance
Dividends payable on ordinary shares by subsidiaries 228000000.00
Total 228000000.00
(2) Other payables
1) Other payables listed by the nature of payment
Unit: RMB
Items Closing balance Opening balance
Intercompany balances 5548635694.24 14776720257.46
Entrusted loan 787149197.50
Security deposits 916055524.03 826693128.75
Settled but unpaid operating expenses 110443622.88 278440701.05
Others 13622038.33 22130219.71
Subtotal 6588756879.48 16691133504.47
There is no other important payables with age over 1 year at the end of the period.
25. Contract liabilities
Unit: RMB
Items Closing balance Opening balance
Payments for goods 5995580462.05 4421732432.83
Total 5995580462.05 4421732432.83
There is no other important contract liabilities with age over 1 year at the end of the period.
26. Employee benefits payable
(1) Presentation of employee benefits
Unit: RMB
Items Opening balance Increase in the Decrease in the current period current period Closing balance
I. Short-term employee
benefits 1019260553.27 3769686804.32 3804883191.95 984064165.64
II. Post-employment 12960223.29 167347072.81 167562183.25 12745112.85
benefits - defined
217 / 276 Full Text of 2024 Annual Report
contribution plan
III. Termination
benefits 1209375.43 1209375.43
Total 1032220776.56 3938243252.56 3973654750.63 996809278.49
(2) Short-term remuneration
Unit: RMB
Items Opening balance Increase in the Decrease in the current period current period Closing balance
1. Wage bonus
allowance and subsidy 1010626077.30 3559521777.54 3595111000.86 975036853.98
2. Employee welfare
fund 26550691.11 26550691.11
3. Social insurance
premium 7487649.31 97603622.53 97244984.25 7846287.59
Including: Medical
premium 6528799.94 84848078.09 84330369.92 7046508.11
Occupational injuries
premium 958849.37 12372129.24 12531199.13 799779.48
Maternity premium 383415.20 383415.20
4. Housing provident
fund 290954.00 58223085.23 58180186.55 333852.68
5. Trade union fund
and employee 855872.66 27787627.91 27796329.18 847171.39
education fund
Subtotal 1019260553.27 3769686804.32 3804883191.95 984064165.64
(3) Presentation of defined contribution plan
Unit: RMB
Items Opening balance Increase in the Decrease in the current period current period Closing balance
1. Basic endowment
insurance premium 12529399.41 161791210.53 161994014.38 12326595.56
2. Unemployment
insurance premium 430823.88 5555862.28 5568168.87 418517.29
Subtotal 12960223.29 167347072.81 167562183.25 12745112.85
27. Taxes payable
Unit: RMB
Items Closing balance Opening balance
VAT 13254307.86 7837443.46
Consumption tax 747606263.37 28973236.05
Enterprise income tax 89950544.34 61736590.18
Individual income tax 15562859.71 15229448.50
218 / 276 Full Text of 2024 Annual Report
Urban maintenance and construction tax 98714225.59 29773987.02
Housing property tax 34022887.00 30376665.46
Land use tax 116305831.44 234528096.28
Education surcharge 42653919.65 12775359.01
Local education surcharge 28437246.39 8518206.02
Environmental protection tax 3145855.20 2831476.99
Stamp duty 67254962.09 40489040.73
Deed tax 20953566.00 3711618.00
Total 1277862468.64 476781167.70
28. Non-current liabilities due within one year
(1) Details
Unit: RMB
Items Closing balance Opening balance
Long-term borrowings due within one
year 38301297104.65 28229063293.47
Bonds payable due within one year 2037082007.25
Lease liabilities due within one year 21198112.29 20538874.09
Total 38322495216.94 30286684174.81
(2) Increase/decrease of bonds payable: (excluding preferred stock perpetual bond and other financial
instruments classified as financial liabilities)
Amoun Openi Premiu Wh
Bonds Par Coup
Current Clos
on Issuin t ng
Par m/disco ethe
Name value g date Maturity outstan Balan value unt
period ing r
rate ding ce interest amortiz
repaymen Bala
ation t nce
defa
ult
20 1000 4/21/20204/ 995452 1030Rongshe 0000 3.86% 4 (2+2) years 4235 124591 394255. 1043276
ng G1 00.00 22/20 830.20 55.96 78.08 94 989.98
No
20
4 years with
the
Company’s
8/31/2 option to
20 1000 020 adjust the 1006
Rongshe 0000 3.45% 9/1/20 coupon rate 995405 225539 610586. 1029823
ng G2 00.00 20. and the 660.39
6584 72.62 11 010.02 No
9/2/20 investor’s 51.29
20 sell-back
option at the
end of the
second year
199082037
Total 58490. 0820 350131 100484 2073100
5907.2550.702.05000.00
219 / 276 Full Text of 2024 Annual Report
29. Other current liabilities
Unit: RMB
Items Closing balance Opening balance
Output tax to be recognized 742351889.84 551990844.96
Total 742351889.84 551990844.96
30. Long-term borrowings
Unit: RMB
Items Closing balance[Note] Opening balance
Mortgaged borrowings 187683275.31 400775733.62
Guaranteed borrowings 25309274718.75 25540063351.05
Credit borrowings 874673819.84 462895972.33
Mortgaged and guaranteed borrowings 93146709048.51 98775848764.18
Total 119518340862.41 125179583821.18
[Note] The Group’s long-term borrowings include multiple bank loans with covenants. As of December 31
2024 the carrying amount of such borrowings amounted to RMB 104096748848.05. The loan agreements require
the Company to comply with covenant conditions such as asset-liability ratio current ratio and interest coverage
ratio during the borrowing period. If these conditions are not met the loans may become repayable on demand at
the discretion of the banks. The Group expects to comply with the aforementioned covenant conditions.
31. Lease liabilities
Unit: RMB
Items Closing balance Opening balance
Lease payments 212198297.79 241120991.44
Unrecognized financial expenses -40573839.45 -48118679.06
Total 171624458.34 193002312.38
32. Deferred income
Unit: RMB
Items Opening balance Increase in the Decrease in the Reasons for current period current period Closing balance balance
Government grants 195581593.25 26625900.00 23577526.96 198629966.29 Related to assets
Total 195581593.25 26625900.00 23577526.96 198629966.29 --
33. Share capital
Unit: RMB
Movements
Opening Closing
balance Issue of new Bonus Conversion balance
shares shares Others Subtotal of reserve to
220 / 276 Full Text of 2024 Annual Report
shares
Total number 101255250 101255250of shares 00.00 00.00
34. Capital reserve
Unit: RMB
Items Opening balance Increase in the Decrease in the current period current period Closing balance
Share/capital premium 10779726139.51 10779726139.51
Other capital reserve 45596119.85 1363423.65 7119047.97 39840495.53
Total 10825322259.36 1363423.65 7119047.97 10819566635.04
Other notes including notes to increase and decrease in the current period and its reasons:
1) Because of other changes in the owner’s equity of associates other than net gain and loss other
comprehensive income and profit distribution the share to be entitled by shareholding ratio calculated by the
company is included in the capital reserve (other capital reserves) that is RMB 1363423.65.
2) During this period the subsidiary Zhejiang Petroleum & Chemical Co. Ltd. transferred its equity in
associate resulting in a transfer of the accumulated capital reserve (other capital reserve) of RMB 7119047.97.
35. Treasury stock
Unit: RMB
Items Opening balance Increase in the Decrease in the current period current period Closing balance
Repurchased public shares 6619807176.02 367392060.78 190413.56 6987008823.24
Total 6619807176.02 367392060.78 190413.56 6987008823.24
Other notes including notes to increase and decrease in the current period and its reasons:
According to the Proposal on Repurchase of Shares of the Company deliberated and adopted at the 21st
meeting of the fifth board of directors held by the Company on March 15 2022 the Company has used its own
funds to buy back part of the public shares issued by it in the form of centralized bidding transaction which is used
to convert corporate bonds issued by listed companies that can be converted into shares. In the current period the
repurchase amount is not less than RMB 1 billion (inclusive) and not more than RMB 2 billion (inclusive) and the
repurchase price is not more than RMB 22/share (inclusive).According to the Proposal on Repurchase of Shares of the Company deliberated and adopted at the second
meeting of the sixth session of the Board of Directors of the Company held on August 4 2022 the Company has
used its own funds to buy back part of the public shares issued by it in China in the form of centralized bidding
transaction which is used to convert corporate bonds or employee stock ownership plans issued by listed companies
that can be converted into shares. The total amount of repurchase funds shall be not less than RMB 1 billion
(inclusive) and not more than RMB 2 billion (inclusive) and the repurchase price shall not exceed RMB 20/share.According to the Proposal on Repurchase of Shares approved at the 10th meeting of the Sixth Board of
Directors on August 21 2023 and the Proposal on Increasing the Amount of Share Repurchase (Phase III)
approved at the 14th meeting of the Sixth Board of Directors on November 27 2023 it was agreed that the Company
would use its own funds to repurchase a portion of its domestically issued RMB-denominated ordinary shares (A-
shares) through centralized bidding transactions which would be used to convert corporate bonds or employee stock
221 / 276 Full Text of 2024 Annual Report
ownership plans that could be converted into shares issued by listed companies. The repurchase amount was no less
than RMB 1.5 billion (inclusive) and no more than RMB 3.0 billion (inclusive) and the repurchase price was no
more than RMB 18 per share (inclusive).At the beginning of the period the Company had already repurchased 516433122 shares. During this period
it repurchased additional 36799736 shares through the dedicated repurchase securities account via centralized
bidding transactions with a total transaction amount of RMB 367392060.78 (excluding transaction fees). At the
same time by entering into over-the-counter (OTC) derivative agreements with CITIC Securities Co. Ltd. and
Shenwan Hongyuan Securities Co. Ltd. the Company obtained cash settlement gains thereby reducing the actual
repurchase cost by RMB 190416.56 for this period.As of December 31 2024 the Company has completed the aforementioned third-phase share repurchase
program.
36. Other comprehensive income
Unit: RMB
Current period cumulative
Less:
Amount
Less: OCI included
Current previously in other
period recognized comprehe Attributab
Items Opening cumulat but
nsive Less: Attributab le to non- Closing
balance ive transferred incomes previously Income tax
le to controlling balance
before to profit or parent and then expenses company shareholdeincome loss in the
tax current transferre
rs
period d into current
retained
earnings
I. Items not to
be reclassified
subsequently 590642.2 -
to profit or 4 590642.24
loss
Others 590642.24
-
590642.24
II. Items to be
reclassified
subsequently 1096132 110438 - 17127899
-28089221
to profit or 24.11 586.05 2998687.87 2.87
2261359.6
26.98
loss
Including:
OCI to be
transferred to 1057702 110438 - 12020716 - 22597745
profit or loss 86.01 586.05 2998687.87 7.57 6769893.6 3.58
under equity 5
method
Translation 3842938.reserves 10
51071825.4508534.054914763.
30340
Total 1102038 110438 - 17068835 - 2808922166.35 586.05 2998687.87 0.63 2261359.6 6.98
222 / 276 Full Text of 2024 Annual Report
2
37. Special reserves
Unit: RMB
Items Opening balance Increase in the Decrease in the current period current period Closing balance
Work safety fund 60677296.91 396314212.37 437934321.85 19057187.43
Total 60677296.91 396314212.37 437934321.85 19057187.43
Other notes including notes to increase and decrease in the current period and its reasons:
The increase and decrease of special reserve in this period are the work safety expenses accrued and used by
subsidiaries Zhejiang Petroleum & Chemical Co. Ltd. Ningbo Zhongjin Petrochemical Co. Ltd. Yisheng Dahua
Petrochemical Co. Ltd. Zhejiang Yisheng New Material Co. Ltd. and ZPC Zheyou Technology Co. Ltd.
38. Surplus reserve
Unit: RMB
Items Opening balance Increase in the Decrease in the current period current period Closing balance
Statutory surplus
reserve 974151644.68 296591421.35 1270743066.03
Total 974151644.68 296591421.35 1270743066.03
Notes to surplus reserves including notes to current increase and decrease and related reasons:
According to the Articles of Association 10% of the net profit realized by the parent company in this period
has been withdrawn for the statutory surplus reserve.
39. Undistributed profit
Unit: RMB
Items Current period cumulative Preceding period comparative
Balance before adjustment at the end of
preceding period 28859818194.51 29264532743.94
Add: Increase due to adjustment (or less:
decrease) 1177803.84
Opening balance after adjustment 28859818194.51 29265710547.78
Add: Net profit attributable to owners of
the parent company 724484686.45 1158146248.89
Less: Appropriation of statutory surplus
reserve 296591421.35 87681249.96
Dividend payable on ordinary
shares 957314454.20 1476357352.20
Closing balance 28330397005.41 28859818194.51
223 / 276 Full Text of 2024 Annual Report
40. Operating revenue and operating cost
(1) Details
Unit: RMB
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 324687881171.91 287532565333.66 324161501353.80 286937146140.13
Other operations 1787281436.97 1457978546.89 950112914.29 821739557.17
Total 326475162608.88 288990543880.55 325111614268.09 287758885697.30
Whether the lower of the net profits before and after net of non-recurring gains/losses is negative through audit
□ Yes □ No
Other notes
(2) Breakdown of revenue
1) Breakdown of revenue from contracts with customers by goods or services
Amount in the current period Amount in the previous period
Items
Revenue Cost Revenue Cost
Refining 117855712431.38 97149285936.52 121884564630.35 97185773925.13
Chemical 121767959624.54 105205550952.93 121776659403.66 109402218957.65
PTA 49677505579.61 50351837995.70 53189803246.86 53529769810.68
Polyester chemical
fiber film 18507338180.98 18195490832.19 14717875220.67 14245686777.56
Trade and others 18659250541.39 18084103124.44 13540394215.39 13394398783.78
Subtotal 326467766357.90 288986268841.78 325109296716.93 287757848254.80
The Company’s total chemical production capacity (including associate) reached 59.27 million tons
corresponding to a total of RMB 278.6 billion in operating revenue from chemicals in 2024.
2) Breakdown of revenue from contracts with customers by time of transferring goods or rendering services
Unit: RMB
Items Current period cumulative Preceding period comparative
Recognized at a point in time 326467766357.90 325109296716.93
Subtotal 326467766357.90 325109296716.93
(3) Information related to performance obligations
Nature of
Time of fulfilling Significant goods or Type of
Items performance payment services that
Whether the Amount expected warranties and
obligations terms the Company
Company is a to be returned to related
has promised principal the customer obligations
to transfer
Sale Upon delivery of The payment Products that Warranty-type of goods is generally meet national Yes None quality Goods made in standards guarantee
224 / 276 Full Text of 2024 Annual Report
advance; the
payment
duration for
accounts
receivable is
generally
from 30 to 90
days after
delivery
(4) The revenue recognized in the current period included in the opening carrying amount of contract liabilities
is RMB 4421732432.83.
(5) Revenue from and cost of trial sales presented as operating revenue and operating cost
1) Revenue from and cost of trial sales
Unit: RMB
Items Current period cumulative Preceding period comparative
Revenue 10302502259.17 12346750810.64
Cost 9364411482.35 12028406955.08
2) Critical accounting estimates used in determining costs related to commissioning sales
For the inventory of trial production before the fixed assets of the Company reach the expected usable state
the relevant inventory cost is recognized on the basis of the necessary and reasonable expense under the normal
design production capacity combined with the normal design production capacity after the fixed assets reach the
expected usable state the normal production input-output ratio of the products and other factors.
41. Taxes and surcharges
Unit: RMB
Items Current period cumulative Preceding period comparative
Consumption tax 21876182863.52 20158116786.69
Urban maintenance and construction tax 1522606490.49 1413261170.65
Education surcharge 662539298.03 609449176.14
Housing property tax 40528943.36 35451787.21
Land use tax 119576761.38 145847592.94
Vehicle and vessel use tax 88104.29 92010.68
Stamp duty 210664196.49 167370574.64
Local education surcharge 441692865.27 406300720.73
Environmental protection tax 23560240.64 11767763.80
Total 24897439763.47 22947657583.48
42. Administrative expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Employee benefits 403637588.16 404325067.28
Office expenses 144753610.00 132123305.00
225 / 276 Full Text of 2024 Annual Report
Depreciation and amortization 248918000.60 170018094.68
Insurance fees 140182396.42 156362133.49
Business entertainment expenses 13536625.23 20556059.77
Others 25685474.38 25613358.00
Total 976713694.79 908998018.22
43. Selling expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Employee benefits 143059036.16 114405591.84
Sales business fees 33491051.89 33264718.69
Others 16562212.76 12791937.40
Total 193112300.81 160462247.93
44. R&D expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Direct inputs 3650032751.45 5002777534.42
Depreciation and amortization 847644288.46 977831515.04
Employee benefits 582233984.76 553305248.93
Equipment testing fees 7362107.00 7048769.45
Outsourced R&D and others 14210153.93 14319284.66
Total 5101483285.60 6555282352.50
45. Financial expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Interest expenditures 7077035657.42 7352267160.76
Interest income -544687994.07 -462192239.25
Gains and losses on foreign exchange 239749460.14 988178999.07
Others 359242723.86 323873805.56
Total 7131339847.35 8202127726.14
46. Other income
Unit: RMB
Sources generating other incomes Current period cumulative Preceding period comparative
Government grants related to assets 23577526.96 30422294.00
Government grants related to income 1077141580.04 798372989.39
226 / 276 Full Text of 2024 Annual Report
Refund of handling fees for withholding
individual income tax 3890671.08 5085360.29
VAT extra deductions 1767143763.75 1751845788.50
Others 151540.00 3514912.00
Total 2871905081.83 2589241344.18
47. Gains on changes in fair value
Unit: RMB
Items Current period cumulative Preceding period comparative
Derivative financial assets 319353476.86 292781787.20
Derivative financial liabilities -34655378.23 -78931785.08
Held-for-trading financial liabilities -164399967.20 -57963734.18
Total 120298131.43 155886267.94
48. Investment income
Unit: RMB
Items Current period cumulative Preceding period comparative
Investment income from long-term
equity investments under equity method 244591550.05 275964998.21
Investment income from disposal of
long-term equity investments 10960230.72 30580952.97
Losses on discounting of receivables
financing -68823737.96 327969992.65
Investment income from disposal of
derivative financial assets -24087658.90 -174729555.22
Interest income from call loans between
related parties 392911.94 248144.66
Total 163033295.85 460034533.27
49. Credit impairment loss
Unit: RMB
Items Current period cumulative Preceding period comparative
Bad debts -189106251.69 -105271556.51
Total -189106251.69 -105271556.51
50. Assets impairment loss
Unit: RMB
Items Current period cumulative Preceding period comparative
Inventory write-down loss -163827403.04 -121513148.98
Total -163827403.04 -121513148.98
227 / 276 Full Text of 2024 Annual Report
51. Gains on asset disposal
Unit: RMB
Sources of asset disposal income Current period cumulative Preceding period comparative
Gains on disposal of fixed assets -334956.39 3706231.92
Gains on disposal of intangible assets 17775133.30
Total 17440176.91 3706231.92
52. Non-operating revenue
Unit: RMB
Items Current period cumulative Preceding period Amount included in non-comparative recurring profit or loss
Indemnity income 9406545.91 223772.36 9406545.91
Confiscatory income 845875.26 2533090.04 845875.26
Others 218528.74 199409.30 218528.74
Total 10470949.91 2956271.70 10470949.91
53. Non-operating expenditures
Unit: RMB
Items Current period cumulative Preceding period Amount included in non-comparative recurring profit or loss
Donation expenditures 17300000.00 10000000.00 17300000.00
Losses on damage or
retirement of non-current 362553.03 156295.40 362553.03
assets
Overdue fines 60411769.58 403869.72 60411769.58
Compensation expenses 30488423.15 30488423.15
Others 464403.13 101964.64 464403.13
Total 109027148.89 10662129.76 109027148.89
54. Income tax expenses
(1) Presentation of income tax expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Current period income tax expenses 368480873.10 597000358.58
Deferred income tax expenses -588084286.39 -647584367.94
Total -219603413.29 -50584009.36
228 / 276 Full Text of 2024 Annual Report
(2) Adjustment of accounting profit and income tax expense
Unit: RMB
Items Current period cumulative
Profit before tax 1905716668.62
Income tax expenses based on tax rate applicable to the parent
company 476429167.15
Effect of different tax rate applicable to subsidiaries -114282096.25
Effect of prior income tax reconciliation -4475808.72
Effect of non-taxable income -147549741.61
Effect of non-deductible costs expenses and losses 130657096.78
Effect of utilization of deductible losses not previously
recognized as deferred tax assets -176072653.11
Effect of deducible temporary differences or deductible losses
not recognized as deferred tax assets in the current period 35363620.54
Effect of extra deductions of R&D costs -419672998.07
Income tax expenses -219603413.29
55. Other comprehensive income
Refer to Note VII 36 for details.
56. Cash flow statement items
(1) Cash related to operating activities
Other cash receipts related to operating activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Receipts of government grants 1704903975.77 882037187.49
Withdrawal of deposits for notes and
letters of credit 1274960321.30 2227779041.99
Receipts of temporary borrowings from
Zhejiang Rongsheng Holding Group Co. 201500000.00 1700000000.00
Ltd.Receipts of interest income from cash in
bank 544687994.07 462192239.25
Withdrawal of operating security
deposits 243339427.96 358954526.64
Others 29972875.16 20817409.42
Total 3999364594.26 5651780404.79
Other cash payments related to operating activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Payment for deposits for notes and letters
of credit 939955714.82 1274961321.30
229 / 276 Full Text of 2024 Annual Report
Repayment of temporary borrowings
from Zhejiang Rongsheng Holding 201500000.00 1700000000.00
Group Co. Ltd.Out-of-pocket expenses of administrative
expenses R&D expenses and selling 451840559.05 421455195.91
expenses
Payment for bank handling fees 273301181.98 302962268.04
Payment for operating security deposits 419277649.81 241779503.01
Others 389101702.33 79759938.71
Total 2674976807.99 4020918226.97
(2) Cash related to investment activities
Other cash receipts related to investing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Withdrawal of deposits for notes and
letters of credit 58439047.20 300801878.44
Receipts of project and land bidding
deposits 126799650.30 170796112.11
Withdrawal of temporary borrowings and
interests from ZPC ENN (Zhoushan) Gas 416486.66 248144.64
Co. Ltd.Total 185655184.16 471846135.19
Other cash payments related to investing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Payment for project and land bidding
deposits 115357030.89 152021068.01
Payment for deposits for notes and letters
of credit 26984994.77 58439047.20
Payment for temporary borrowings to
ZPC ENN (Zhoushan) Gas Co. Ltd. 6000000.00
Total 142342025.66 216460115.21
(3) Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Receipts from discounted but undue
letters of credit and notes 18250688807.61
Receipts of temporary borrowings from
Zhejiang Rongsheng Holding Group Co. 3148500000.00 19821000000.00
Ltd.Receipts of entrusted loans from 786000000.00
Zhejiang Yisheng Petrochemical Co.
230 / 276 Full Text of 2024 Annual Report
Ltd.Withdrawal of deposits for borrowings 70908960.00 250000000.00
Receipts of the transaction margin and
settlement funds related to the repurchase 5895301.00
of shares
Receipts from transfer of non-controlling
interest of subsidiaries 28325460.00
Total 21475993068.61 20885325460.00
Other cash payments related to financing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Repayment of temporary borrowings
from Zhejiang Rongsheng Holding 12415012459.99 6927759989.43
Group Co. Ltd.Repayment of entrusted loans from
Zhejiang Yisheng Petrochemical Co. 804453086.65 1028982195.75
Ltd. and interests thereof
Payment for repurchase of shares 367392060.78 2642310498.59
Payment for financing handling fees 85941541.88 20911537.53
Payment for right-of-use assets 30874272.20 31518302.23
Payment for deposits for borrowings 250000000.00
Payment for discounted letters of credit
upon maturity 20297165632.32
Payment for option margin 5000000.00
Payment for deposits for leased-in silver 672580625.41
Total 14376254046.91 31203648155.85
Changes in all liabilities arising from financing activities
□ Applicable □ Not applicable
57. Supplementary information on cash flow statement
(1) Supplementary information of Cash Flow Statement
Unit: RMB
Supplementary information Current period cumulative Preceding period comparative
1. Reconciliation of net profit to cash
flows from operating activities:
Net profit 2125320081.91 1603162465.64
Add: Provision for assets impairment 163827403.04 121513148.98
Provision for credit impairment 189106251.69 105271556.51
Depreciation of fixed assets oil and gas
assets productive biological assets 15021129741.20 14535540221.77
Depreciation of right-of-use assets 23864319.63 25504627.18
Amortization of intangible assets 185023887.02 160144938.95
Amortization of long-term prepayments 45701.13 71458.00
231 / 276 Full Text of 2024 Annual Report
Losses on disposal of fixed assets
intangible assets and other long-term -17440176.91 -3706231.92
assets (Less: gains)
Fixed assets retirement loss (Less: gains) 362553.03 156295.40
Losses on changes in fair value (Less:
gains) -120298131.43 -155886267.94
Financial expenses (Less: gains) 7412256559.44 8367284097.36
Investment losses (Less: gains) -163033295.85 -460034533.27
Decrease of deferred tax assets (Less:
increase) -546367399.20 -310687195.79
Increase of deferred tax liabilities (Less:
decrease) -41716887.19 -336897172.15
Decrease of inventories (Less: increase) 16587048796.10 -1165260697.11
Decrease of operating receivables (Less:
increase) -5370176094.92 695137952.67
Increase of operating payables (Less:
decrease) -796925853.22 4721365821.01
Others -42900850.59 176541023.44
Net cash flows from operating activities 34609126604.88 28079221508.73
2. Significant investing and financing
activities not related to cash receipts and
payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets leased under finance leases
3. Net changes in cash and cash
equivalents:
Cash at the end of the period 12943832335.45 11486855097.52
Less: Cash at the beginning of the period 11486855097.52 15459279803.77
Add: Cash equivalents at the end of the
period
Less: Cash equivalents at the beginning
of the period
Net increase of cash and cash equivalents 1456977237.93 -3972424706.25
(2) Composition of cash and cash equivalents
Unit: RMB
Items Closing balance Opening balance
I. Cash 12943832335.45 11486855097.52
Including: cash on hand 1580800.25 1499665.59
Cash in bank on demand for payment 12624073263.80 11121148364.87
Other cash and bank balances on demand
for payment 318178271.40 364207067.06
III. Cash and cash equivalents at the end
of the period 12943832335.45 11486855097.52
232 / 276 Full Text of 2024 Annual Report
(3) Cash and bank balances not considered as cash and cash equivalents
Unit: RMB
Items Closing balance Opening balance Reasons for not considered as cash and cash equivalents
Deposits for bank acceptance 471306867.33 771727014.41
Deposits for letters of credit 475632655.05 561350011.26
Deposits for loans 250000000.00 250000000.00 These are all deposits for related businesses and are subject to
Deposits for letters of restrictions on use.guarantee 20001187.21
Deposits for leased-in silver 672580625.41
Accrued interest of deposits 30250.00 322342.83 The accrued interest on the deposit
ETC deposits 1000.00 1000.00 ETC frozen funds
Subtotal 1889552585.00 1583400368.50
(4) Changes in liabilities related to financing activities
Unit：RMB 10000
Opening Increase Decrease Items balance Changes in Changes in Changes in Changes in Closing balance
cash non-cash cash non-cash
Bank borrowings 19821958.38 12603287.23 849863.32 13084048.16 20191060.77
Other payables –
temporary borrowings
from Zhejiang 1461576.36 314850.00 19938.45 1241501.25 554863.56
Rongsheng Holding
Group Co. Ltd.Other payables –
entrusted loans from
Zhejiang Yisheng 78714.92 1730.39 80445.31
Petrochemical Co.Ltd.Other payables –
dividend payable 22800.00 340731.45 363531.45
Bonds payable
(including bonds
payable due within 203708.20 3601.80 207310.00
one year)
Lease liabilities
(including lease
liabilities due within 21354.12 1015.57 3087.43 19282.26
one year)
Subtotal 21610111.98 12918137.23 1216880.98 14979923.60 20765206.59
(5) Major activities that do not involve cash receipts and payments
Endorsement and transfer amount of commercial drafts that do not involve cash receipts and payments
Items Current period cumulative Preceding period comparative
233 / 276 Full Text of 2024 Annual Report
Amount of endorsed commercial acceptance 609274450.40 3524694837.25
Including: Payments for goods 434924689.02 3454580186.05
Payments for acquisition of fixed assets and other long-term assets 174349761.38 70114651.20
58. Foreign currency monetary items
(1) Monetary items in foreign currency
Unit: RMB
Items Closing balance in foreign Exchange rate RMB equivalent at the end currencies of the period
Cash and bank balances
Including: USD 746268368.26 7.1884 5364475538.40
EUR 4548291.87 7.5257 34229080.13
HKD 230186.82 0.92604 213162.20
Pound 2.70 9.0765 24.51
SGD 2350376.90 5.3214 12507295.65
Accounts receivable
Including: USD 542762040.06 7.1884 3901590648.77
Other receivables
Including: USD 14660128.94 7.1884 105382870.87
SGD 40614.65 5.3214 216126.80
HKD 53901206.49 0.92604 49914673.26
Other payables
Including: USD 13335663.62 7.1884 95862084.37
SGD 102100.37 5.3214 543316.91
Short-term borrowings
Including: USD 95552540.68 7.1884 686869883.42
Accounts payable
Including: USD 1211508617.27 7.1884 8708808544.39
EUR 6652993.05 7.5257 50068429.80
GBP 678025.00 9.0765 6154093.91
Long-term borrowings
Including: EUR 47994261.07 7.5257 361190410.53
Non-current liabilities due
within one year
Including: USD 1030962.05 7.1884 7410967.60
EUR 6399234.82 7.5257 48158721.48
234 / 276 Full Text of 2024 Annual Report
(2) Description of the overseas operating entity including important overseas operating entity shall
disclose its main overseas business place recording currency and the basis for selection and shall also
disclose reasons in the case of changes in recording currency.□Applicable □ Not applicable
Name of entities Place of Functional registration currency Selection basis
Hong Kong Sheng Hui Limited Hong Kong SAR
Hong Kong Yisheng Dahua Petrochemical Co. Ltd. Hong Kong SAR
Yisheng New Materials Trading Co. Ltd. Hong Kong SAR
Common settlement
Rongsheng Petrochemical (Hong Kong) Co. Ltd. Hong Kong SAR USD currency for their
operations
Rongsheng Petrochemical (Singapore) Pte. Ltd. Singapore
Zhejiang Petroleum & Chemical (Singapore) Pte. Ltd. Singapore
Rongtong Logistics (Singapore) Pte. Ltd. Singapore
59. Lease
(1) The Company as the lessee
□Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable □ Not applicable
Simplified treatment of short-term leases or rental expenses of low-value assets
□Applicable □ Not applicable
1) Please refer to Note VII 13 of these financial statements for information about the right-of-use assets.
2) Accounting policies of short-term leases and low-value asset leases of the Company are detailed in Note V
29 of these financial statements. The amounts of short-term lease expense and low-value asset lease expense
included in the current gain and loss are as follows:
Items Current period cumulative Preceding period comparative
Expense relating to short-term leases 23582427.12 20554034.54
Expense relating to leases of low-value assets
(excluding short-term leases)
Total 23582427.12 20554034.54
3) Current gain and loss and cash flow related to leasing
Items Current period cumulative Preceding period comparative
Interest expense on lease liabilities 8158128.24 9249553.79
Total cash outflows related to leases 55525318.25 52662695.17
4) The maturity analysis of lease liabilities and the corresponding liquidity risk management are detailed in
Note IX (II) of these financial statements.
235 / 276 Full Text of 2024 Annual Report
(2) The Company as the lessor
Operating lease as lessor
□Applicable □ Not applicable
Unit: RMB
Items Leasing revenue
Lease income 7396250.98
Total 7396250.98
Financial lease as lessor
□ Applicable □ Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable □ Not applicable
Unit: RMB
Undiscounted annual lease receivables
Items
Closing balance Opening balance
Within 1 year 2137089.00 1433356.05
1-2 years 2137089.00
2-3 years 2137089.00
3-4 years 2137089.00
4-5 years 2137089.00
Total amount of undiscounted lease
receipts after five years 12644441.00
(3) Recognition of the profit and loss of financial leasing sales as a manufacturer or distributor
□ Applicable □ Not applicable
60. Others
Supplier financing arrangements
(1) Terms and conditions of supplier financing arrangements
Banks Amount of Commencement borrowings date Maturity date Guarantors
Zhejiang Rongsheng
Huishang Bank Co. Ltd. 92000000.00 March 27 2024 March 19 2025 Holding Group Co.Ningbo Haishu Sub-branch Ltd.Agricultural Bank of China Zhejiang Rongsheng
Co. Ltd. Ningbo Xiapu Sub- 89000000.00 April 9 2024 April 7 2025 Holding Group Co.branch Ltd.Agricultural Bank of China Zhejiang Rongsheng
Co. Ltd. Ningbo Xiapu Sub- 80000000.00 April 9 2024 April 7 2025 Holding Group Co.branch Ltd.Agricultural Bank of China Zhejiang Rongsheng
Co. Ltd. Ningbo Xiapu Sub- 84000000.00 April 9 2024 April 7 2025 Holding Group Co.branch Ltd.
236 / 276 Full Text of 2024 Annual Report
Agricultural Bank of China Zhejiang Rongsheng
Co. Ltd. Ningbo Xiapu Sub- 50000000.00 June 17 2024 June 12 2025 Holding Group Co.branch Ltd.Agricultural Bank of China Zhejiang Rongsheng
Co. Ltd. Ningbo Xiapu Sub- 30000000.00 June 25 2024 June 19 2025 Holding Group Co.branch Ltd.Agricultural Bank of China Zhejiang Rongsheng
Co. Ltd. Ningbo Xiapu Sub- 17000000.00 September 25 2024 September 16 2025 Holding Group Co.branch Ltd.China Construction Bank Zhejiang Rongsheng
Corporation Hangzhou 50000000.00 March 29 2024 March 20 2025 Holding Group Co.Dangwan Sub-branch Ltd.Bank of China Co. Ltd. Zhejiang Rongsheng
Zhejiang Branch 10000000.00 September 29 2024 March 17 2025 Holding Group Co. Ltd.
(2) Liabilities related to supplier financing arrangements
1) Carrying amount of related liabilities
Items Closing balance Opening balance
Short-term borrowings 502000000.00
Including: Payments already received by suppliers 502000000.00
Subtotal 502000000.00
2) Range of payment due dates for related liabilities
Items Range of payment due dates at Range of payment due dates at the the end of the current period beginning of the current period
Liabilities under finance arrangements March 17 2025 – September 16 2025
3) Non-cash changes in related liabilities
Non-cash change type Current period cumulative Preceding period comparative
Balances transferred from accounts payable to short-
term borrowings 502000000.00
VIII. R&D expenditure
Unit: RMB
Items Current period cumulative Preceding period comparative
Direct inputs 3650032751.45 5002777534.42
Depreciation and amortization 847644288.46 977831515.04
Employee benefits 582233984.76 553305248.93
Equipment commissioning costs 7362107.00 7048769.45
Outsourced R&D and others 14210153.93 14319284.66
Total 5101483285.60 6555282352.50
Including: R&D costs to be expensed 5101483285.60 6555282352.50
237 / 276 Full Text of 2024 Annual Report
IX. Consolidation scope changes
Changes in consolidation scope for other reasons
1. Increase in consolidation scope
Proportion of
Acquisition
Company name Date of equity Subscribed capital subscribed capital method acquisition contribution
contribution (%)
Taizhou ZPC Sales Co. Ltd. New establishment February 27 2024 10000000.00 100.00
Zhejiang Rongyi Chemical Fiber Co.Ltd. New establishment March 8 2024 10000000.00 100.00
Zhoushan ZPC Logistics Co. Ltd. New establishment April 12 2024 10000000.00 100.00
2. Decrease in consolidation scope
Profit from
beginning of the
Company name Method of equity Date of disposal Net assets on the disposal disposal date period to
disposal date
Zhejiang Zhuosheng Industry & Trade Industrial and
Co. Ltd. commercial July 31 2024 deregistration
X. Interests in other entities
1. Rights and interests in subsidiaries
(1) Group composition
Unit: RMB 10000
Main Holding proportion
Subsidiaries Registered operating Place of Business Acquisition capital place registration nature Direct Indirect method
Zhejiang
Shengyuan
Chemical 200000.00 Xiaoshan Xiaoshan Manufacturin Establishmen
Fiber Co. Zhejiang Zhejiang g
100.00% t
Ltd.Business
Hong Kong Hong Kong Hong Kong combination Sheng Hui USD 1970 Business 100.00% under
Limited China China common
control
Ningbo
Yisheng USD10526. Ningbo Ningbo Manufacturin Establishmen
Chemical 00 Zhejiang Zhejiang g 95.00% t
Co. Ltd.Dalian
Yisheng
Investment 201800.00
Dalian Dalian Manufacturin Establishmen
Liaoning Liaoning g 70.00% t
Co. Ltd.Yisheng 245645.00 Dalian Dalian Manufacturin Establishmen
Dahua Liaoning Liaoning g
84.60% t
238 / 276 Full Text of 2024 Annual Report
Petrochemica
l Co. Ltd.Hong Kong
Yisheng
Dahua USD 10.00 Hong Kong Hong Kong Establishmen
Petrochemica China China
Business 100.00% t
l Co. Ltd.Dalian
Rongxinchen Dalian Dalian
g Trading 1000.00 Liaoning Liaoning Business 100.00%
Establishmen
t
Co. Ltd.Zhejiang
Rongtong
Chemical 5000.00 Xiaoshan Xiaoshan EstablishmenFiber New Zhejiang Zhejiang Business 100.00% t
Material Co.Ltd.Zhejiang
Rongyi
Chemical 1000.00 Shaoxing Shaoxing Establishmen
Fiber Co. Zhejiang Zhejiang
Business 100.00% t
Ltd.Dalian
Yisheng New
Materials 2000.00
Dalian Dalian Manufacturin
Liaoning Liaoning g 100.00%
Establishmen
t
Co. Ltd.Ningbo Business
Zhongjin Ningbo Ningbo Manufacturin combination
Petrochemica 600000.00 Zhejiang Zhejiang g 100.00% under
l Co. Ltd. common control
Ningbo
Niluoshan 36000.00 Ningbo Ningbo Manufacturin EstablishmenNew Energy Zhejiang Zhejiang g 100.00% t
Co. Ltd.Zhejiang Business
Yisheng New Ningbo Ningbo Manufacturin combination
Materials 300000.00 Zhejiang Zhejiang g 51.00% not under
Co. Ltd. common control
Ningbo
Rongxinchen Ningbo Ningbo Establishmen
g Trading 1000.00 Zhejiang Zhejiang Business 100.00% t
Co. Ltd.Yisheng New
Materials HKD 100.00 Hong Kong Hong Kong Trading Co. China China Business 100.00%
Establishmen
t
Ltd.Zhejiang
Rongyi 1000.00 Ningbo Ningbo Business 100.00% EstablishmenTrading Co. Zhejiang Zhejiang t
Ltd.Rongsheng
Petrochemica USD 10100.l (Singapore) 00 Singapore Singapore Business 100.00%
Establishmen
t
Pte. Ltd.Rongtong
Logistics USD 0.0001 Singapore Singapore Business 100.00%
Establishmen
t
(Singapore)
239 / 276 Full Text of 2024 Annual Report
Pte. Ltd.Rongsheng
Petrochemica
l (Hong USD 10.00 Hong Kong Hong Kong Business 100.00% Establishmen
Kong) Co. t
Ltd.Rongsheng
International Xiaoshan Xiaoshan Establishmen
Trading Co. 10000.00 Zhejiang Zhejiang Business 100.00% t
Ltd.Zhejiang Business
Petroleum & combination
Chemical 5580000.00
Zhoushan Zhoushan Manufacturin
Zhejiang Zhejiang g 51.00% under
Co. Ltd. common control
ZPC Zheyou
Technology 41220.00 Zhoushan Zhoushan Manufacturin Establishmen
Co. Ltd. Zhejiang Zhejiang g
70.00% t
Zhejiang
Petroleum &
Chemical USD 10.00 Singapore Singapore Business 100.00% Establishmen
(Singapore) t
Pte. Ltd.ZPC Jintang
Logistics 200000.00 Zhoushan Zhoushan Zhejiang Zhejiang Business 100.00%
Establishmen
Co. Ltd. t
Zhejiang
ZPC Sales 10000.00 Xiaoshan Xiaoshan Zhejiang Zhejiang Business 100.00%
Establishmen
Co. Ltd. t
Zhoushan
ZPC Sales 6000.00 Zhoushan Zhoushan Zhejiang Zhejiang Business 100.00%
Establishmen
Co. Ltd. t
Zhoushan
ZPC Trading 6000.00 Zhoushan Zhoushan Business 100.00% Establishmen
Co. Ltd. Zhejiang Zhejiang t
Ningbo ZPC
Sales Co. 1000.00 Ningbo Ningbo Establishmen
Ltd. Zhejiang Zhejiang
Business 100.00% t
Taizhou ZPC
Sales Co. 1000.00 Taizhou Taizhou Establishmen
Ltd. Zhejiang Zhejiang
Business 100.00% t
ZPC
(Zhejiang
Free Trade
Zone) Green 10000.00 Zhoushan Zhoushan Petrochemica Zhejiang Zhejiang Business 100.00%
Establishmen
t
l Research
Institute Co.Ltd.Zhejiang
ZPC Power Zhoushan Zhoushan Manufacturin Establishmen
Generation 10000.00 Zhejiang Zhejiang g 100.00% t
Co. Ltd.Zhoushan
ZPC Zhoushan Zhoushan Road Establishmen
Logistics 1000.00 Zhejiang Zhejiang transport 100.00% t
Co. Ltd.
240 / 276 Full Text of 2024 Annual Report
Rongxiang
Chemical
Fiber Co. 20000.00
Xiaoshan Xiaoshan Manufacturin Establishmen
Zhejiang Zhejiang g 100.00% t
Ltd.Zhejiang Business
Yongsheng 102000.00 Shaoxing Shaoxing Manufacturin
combination
Technology Zhejiang Zhejiang g 70.00% under
Co. Ltd. common control
Hainan
Rongsheng
International 10000.00 Danzhou Danzhou Establishmen
Trade Co. Hainan Hainan
Business 100.00% t
Ltd.Rongsheng
Chemical Shanghai Shanghai Establishmen
(Shanghai) 5000.00 China China Business 100.00% t
Co. Ltd.Rongsheng
New
Materials 500000.00 Zhoushan Zhoushan Manufacturin 100.00% Establishmen
(Zhoushan) Zhejiang Zhejiang g t
Co. Ltd.Rongsheng
Energy 10000.00 Zhoushan Zhoushan Manufacturin 100.00% Establishmen(Zhoushan) Zhejiang Zhejiang g t
Co. Ltd.Rongsheng
New
Materials 100000.00 Taizhou Taizhou Manufacturin Establishmen
(Taizhou) Zhejiang Zhejiang g
90.00% t
Co. Ltd..Zhejiang
Rongshen
New 2000.00 Xiaoshan Xiaoshan Establishmen
Materials Zhejiang Zhejiang
Business 100.00% t
Co. Ltd.Zhejiang
Shengcheng
New 2000.00 Xiaoshan Xiaoshan Establishmen
Materials Zhejiang Zhejiang
Business 100.00% t
Co. Ltd
Zhejiang
Huiyu New 2000.00 Xiaoshan Xiaoshan EstablishmenMaterials Zhejiang Zhejiang Business 100.00% t
Co. Ltd.
(2) Significant not wholly-owned subsidiaries
Unit: RMB 10000
Holding proportion of Non-controlling Dividend declared to Closing balance of
Subsidiaries non-controlling shareholders’ profit non-controlling non-controlling
shareholders or loss shareholders interest
Dalian Yisheng
Investment Co. Ltd. 30.00% -3541.79 200931.24
Yisheng Dahua 15.40% -3543.61 101381.83
Petrochemical Co.
241 / 276 Full Text of 2024 Annual Report
Ltd.Zhejiang Yisheng
New Materials Co. 49.00% -25619.25 87248.40
Ltd.Zhejiang Petroleum &
Chemical Co. Ltd. 49.00% 176492.34 245000.00 4673503.24
(3) Main financial information of important partially-owned subsidiaries
Unit: RMB
Closing balance Opening balance
Subsidi Curre Non- Curre Non- Tot Curre Non-
aries nt curre Total nt current
Total Curre Non-
liabil nt current al nt current
Total
assets nt assets liabilit liabiliti asse liabili liabilitie
liabili
assets ies es ities assets assets ts ties s ties
Dalian 162
Yisheng 7147 1052 1014
Investm 3819 9906
176778836131226043310173016375098516
295.28828103153421.
906382793.02029.584887621006362422
ent Co. 77.77 30 73.07 7.71 18
738.70123.231.585995.2626.84
Ltd. 89 1
Yisheng
Dahua 8982 7001
145
Petroche 071 15983 8835 13122
10147881171875078514
mical 8976 852.8 9694 07507 53421.
732862643.669066498.3043.402568011
1006361671
Co. 16.49 4 69.33 7.46 18 64 98 87.3 87.61
5995.2682.87
Ltd. 8
Zhejian
g 119
Yisheng 2274 8460719 10734 6801 21501
8951
New 1464 8664 50065 49494. 650
3092439869779647
914.0150.916626.
884747267057
Material 96.09 10.15 6.59 40 70 7862.13
94432799005
6988.818.39
2649.5067.89
s Co. 3
Ltd.Zhejian
g 298
Petroleu 4953 2447 1993 8996 2046
m & 1707 6932
294309580510358064568233498067114638
967.892811037922177733
8669
951574717324220.071
7924
493.3353580.
0627
Chemic 249.48 76.62 8.89 0.94 33 391. 77 8074.al Co. 6 .62 .51 27 0 07
Ltd.Unit: RMB
Current period cumulative Preceding period comparative
Subsidiari Total Cash flows Total Cash flows
es Operating Net profit comprehe from Operating comprehe from revenue nsive operating revenue Net profit nsive operating
income activities income activities
Dalian
Yisheng 31819742 - - -15349587 17191806 13695134 30081391 57567769. 63603754. 14340711Investment 678.09 9.83 2.19 18.04 445.25 18 14 22.98 Co. Ltd.Yisheng
Dahua
Petrochemi 31819742
-----
678.05230059522210175313719608
3008139014123682
cal Co. 0.50 3.82 15.44 277.11
1289537011892397
9.573.7245.10
Ltd.
242 / 276 Full Text of 2024 Annual Report
Zhejiang
Yisheng - - - -
New 32266524 74638395 34389876499.34 51046527 50877766 56744877 56803547
59899571
Materials 4.41 1.78 0.40 066.56 9.11 8.61 2.89
Co. Ltd.Zhejiang
Petroleum
&2617478835424800354546674514892826019958136685471390250991700677
Chemical 3222.19 99.59 29.89 308.69 1771.04 53.00 29.22 88.54
Co. Ltd.
2. Equity in joint venture arrangement or joint venture
(1) Significant joint ventures or associates
Holding
Joint venture or Main Place of Accounting treatment on
associate operating registrati
Business proportion
nature investments in joint ventures place on Direct Indirect or associates
Zhejiang Yisheng Ningbo Ningbo
Petrochemical Co. Ltd. Zhejiang Zhejiang Manufacturing 16.07% 13.93% Equity method
Hainan Yisheng Yangpu Yangpu
Petrochemical Co. Ltd. Hainan Hainan Manufacturing 0.00% 50.00% Equity method
Zhejiang Xiaoshan
Rural Commercial Bank Xiaoshan Xiaoshan Zhejiang Zhejiang Finance 9.712% 0.00% Equity method Co. Ltd.Basis for one having voting rights of below 20% and significant influences or one having voting rights of 20% or
above but no significant influences:
The company holds 9.712% of the shares of Zhejiang Xiaoshan Rural Commercial Bank Co. Ltd. and has a
representative on the board of directors of the company who has the substantive right to participate in decision-
making. The representative can participate in the formulation of financial and operating policies of Zhejiang
Xiaoshan Rural Commercial Bank Co. Ltd. so as to exert significant influence on it.
(2) Main financial information of significant associates
Unit: RMB
Closing balance/Current period cumulative Opening balance/Preceding period comparative
Zhejiang Hainan Zhejiang Zhejiang
Yisheng Yisheng Xiaoshan
Zhejiang
Yisheng Hainan Yisheng Xiaoshan
Petrochemical Petrochemical Rural Petrochemica Petrochemical Rural
Co. Ltd. Co. Ltd. Commercial Bank Co. Ltd. l Co. Ltd.Co. Ltd. Commercial
Bank Co. Ltd.Current assets 18007943478 8131053257. 26065228118 1649863754 6162955958.2 23873656851.45 49 3.67 7.38 4 2.17
Non-current 2741961606. 11585208302 13119101348 3137691308. 10723396187. 11354808957
assets 23 .00 4.36 20 42 4.71
Total assets 20749905084 19716261559 39184329466 1963632885 16886352145. 35228465808.68 .49 8.03 5.58 66 6.88
Current 10573546592 8089815969. 33554794225 9220485531. 5777465785.6 30654233151
liabilities .33 61 1.55 00 7 4.47
Non-current 984230000.00 4755208149. 28342070574 1436900038. 4326522448.8 22201300436liabilities 68 .28 76 3 .51
243 / 276 Full Text of 2024 Annual Report
Total liabilities 11557776592 12845024119 36389001282 1065738556 10103988234. 32874363195.33 .29 5.83 9.76 50 0.98
Non-controlling
interest 284964915.83
Equity
attributable to 9192128492. 6871237440. 27640173446 8978943285. 6782363911.1 23256061220
owners of 35 20 .18 82 6 .07
parent company
Proportionate
share in net 2757638547. 3435618720. 2684413645. 2693682985. 3391181955.5 2258628665.assets 71 10 09 75 8 69
Adjustments 0.00 0.00 0.00
- Goodwill 0.00 102420730.97 4040414.35 102420730.97 4040414.35
- Unrealized
profit from
internal 0.00 -8406325.00 0.00 -10465016.83
transactions
- Others 11273596.89 0.00 1546596.41 11273596.90 2929588.71
Carrying
amount of 2768912144. 3529633126. 2690000655. 2704956582. 3483137669.7 2265598668.investments in 61 08 85 65 2 75
associates
Fair value of
equity
investments in
joint ventures
in association
with quoted
price
Operating 15246583176 32134063244 7600481397. 2259138292 17995790974. 7015368301.revenue .45 .75 91 4.36 30 09
Net profit 214587933.59 143801867.13 3047587610.27 27812596.46 364367774.59
2789441227.
26
Net profit of
discontinued
operations
Other
comprehensive -1402727.06 -54928338.09 1509122219.37 16183749.25 -7987501.78 339244113.18 income
Total
comprehensive 213185206.53 88873529.04 4556709829. 43996345.71 356380272.81 3128685340.income 64 44
Dividend from
associates
received in the 13228639.60 39685918.80
current period
(3) Aggregated financial information of insignificant joint ventures and associates
Unit: RMB
Closing balance/ Current period Opening balance/ Preceding period
cumulative comparative
Associates:
244 / 276 Full Text of 2024 Annual Report
Proportionate shares in the following items
Joint venture:
Total carrying amount of investments 528090394.63 730018523.84
Proportionate shares in the following items
- Net profit -184812258.20 -182684759.52
- Other comprehensive income -8239250.71 -1198206.27
- Total comprehensive income -193051508.91 -183882965.79
XI. Government grants
1. At the end of the reporting period government grants recognized according to the amount receivable
□Applicable □ Not applicable
Items Closing book balance
Government grants receivable – The People’s
government of Yinong Town Xiaoshan 594020000.00
District Hangzhou [Note]
Government grants receivable – Investment
Promotion Bureau of Xiaoshan District 100000000.00
Hangzhou [Note]
Government grants receivable – Zhoushan
Green Petrochemical Base Management 1045798000.00
Committee
Subtotal 1739818000.00
Note: As of the date of approval for issuing the financial statements the Company has received subsidies of
RMB 600000000.00.
2. Reasons for not receiving the estimated amount of government grants at the expected time
□Applicable □ Not applicable
As of the date of approval of this financial report the Company has received grant payments totaling RMB
442761584 with an outstanding receivable balance of RMB 603036416 pending fiscal allocation and payment.
3. Liability items involving government subsidies
□Applicable □ Not applicable
Unit: RMB
Amount of Amount included in Amount carried Other
Items Opening additional
Related to
balance subsidy in current non-
forward to other change in Closing
operating income in current balance
assets/incom
current period current period period e revenue
Deferred 195581593 198629 Related to
income .25
26625900.00 23577526.96 966.29 assets
Subtotal 195581593.25 26625900.00 23577526.96
198629
966.29
4. Government grants included in current profit and loss
245 / 276 Full Text of 2024 Annual Report
□Applicable □ Not applicable
Unit: RMB
Items Current period cumulative Preceding period comparative
Government grants included into other
income 1100719107.00 828795283.39
Affected amount of interest subvention
on profit before tax 9529900.00 5926400.00
Total 1110249007.00 834721683.39
XII. Risks related to financial instruments
1. Various risks arising from financial instruments
Risks Relating to Financial Instruments The Company conducts risk management to seek the appropriate
balance between the risks and benefits from its use of financial instruments and to mitigate the adverse effects that
the risks of financial instruments have on the Company’s financial performance. Based on this objective the
Company’s basic policy for risk management is to confirm and analyze all kinds of risks faced by the Company set
up an appropriate risk bottom line conduct risk management and monitor all risks promptly and reliably to limit
risks within a specific range.The Company faces various risks related to financial instruments in its daily activities mainly including credit
risk liquidity risk and market risk. The Management has deliberated and approved the policies governing such risks
as outlined below.(I) Credit risk
Credit risk refers to the risk that may bring financial loss to one party of the financial tool caused by the other
party’s failure to perform its obligations in the contract.
1. Practice of credit risk management
(1) Evaluation method of credit risk
On each balance sheet date the Company assesses whether the credit risk of relevant financial instruments has
increased significantly since initial recognition. When confirming whether the credit risks have increased
significantly since the initial recognition the Company considers reasonable and well-founded information
including qualitative and quantitative analysis based on the Company’s history data external credit risk ratings and
forward-looking information without incurring additional costs or efforts. Based on a single financial instrument
or a combination of financial instruments with similar credit risk characteristics the Company compares the default
risks of the financial instruments on the balance sheet date with the default risks on the initial recognition date so
as to determine changes in the expected default risks of financial instruments during the duration.When one or more of the following quantitative and qualitative criteria is/are triggered the Company considers
that the credit risks of financial instruments have increased significantly:
1) The quantitative criteria mainly refer to that the probability of default of the remaining duration on the
balance sheet date increases by more than a certain proportion compared with the initial recognition.
2) The qualitative criteria mainly include significant adverse changes in the debtor’s business or financial
situation and existing or expected changes in the technical market economic or legal environment which will
have a significant adverse impact on the debtor’s repayment ability to the Company etc.
(2) Definition of default and credit-impaired assets
When a financial instrument meets one or more of the following conditions the Company defines the financial
asset as a default and its standard is consistent with the definition of credit impairment:
246 / 276 Full Text of 2024 Annual Report
1) The debtor has major financial difficulties;
2) The debtor violates the binding provisions on the debtor in the contract;
3) The debtor is likely to go bankrupt or undergo another financial restructuring;
4) The creditor gives the debtor concessions that the debtor would not make under any other circumstances
due to economic or contractual considerations related to the debtor’s financial difficulties.
2. Measurement of expected credit loss
Key parameters for measuring expected credit loss include the probability of default (PD) loss given default
(LGD) and exposure at default (EAD). The Company has taken into account the quantitative analysis and forward-
looking information of historical statistical data (such as counterparty rating guarantee method collateral type and
repayment method) and established the PD LGD and EAD models.
3. For the reconciliation between the opening balance and the closing balance of the provision for loss of
financial instruments please see notes V (I) 3 and V (i) 6 of the financial statements for details.
4. Credit risk exposure and credit risk concentration
The credit risk to the Company mainly comes from cash and bank balances and accounts receivable. In order
to control the above related risks the Company has taken the following measures respectively.
(1) Cash and bank balances
The Company deposits bank deposits and other cash and bank balances in financial institutions with high credit
rating so its credit risk is low.
(2) Receivables
The Company regularly evaluates the credit of customers who trade by credit. According to the credit
evaluation results the Company chooses to trade with recognized customers with good credit and monitors their
accounts receivable balance to ensure that the Company will not face significant bad debt risk.Since the Company only conducts transactions with recognized third parties with good credit no collateral is
required. Credit risk concentration is managed according to customers. As of December 31 2024 the Company has
a certain credit concentration risk because 49.38% (December 31 2023: 53.41%) of the Company’s accounts
receivable are from the top five customers ranking in terms of balance. The Company holds no collateral or other
credit enhancement for the balance of accounts receivable.The maximum credit risk exposure of the Company is the carrying amount of each financial asset on the
balance sheet.(II) Liquidity risk
Liquidity risk refers to the risk of occurrence of capital shortage when the Company fulfills its obligations
settled by delivering cash or other financial assets. Liquidity risk may result from the inability to sell financial assets
at fair value as soon as possible; or because the other party is unable to repay its contractual debts; or from debts
due in advance; or from the inability to generate expected cash flow.In order to control this risk the Company comprehensively uses various financing means such as bill
settlement and bank loan and adopts the method of the appropriate combination of long-term and short-term
financing methods to optimize the financing structure so as to maintain the balance between financing sustainability
and flexibility. The Company has obtained bank credit lines from a number of commercial banks to meet working
capital needs and capital expenditure.Financial liabilities are classified by remaining time period till maturity
Closing balance
Items
Carrying amount Contract amount not yet discounted Within 1 year 1-3 years Over 3 years
247 / 276 Full Text of 2024 Annual Report
Bank
borrowings 201910607770.29 220409646422.41 85781763934.67 65369822673.33 69258059814.41
Held-for-
trading
financial 1269256561.53 1269256561.53 1269256561.53
liabilities
Derivative
financial 34655378.23 34655378.23 34655378.23
liabilities
Notes
payable 3204293497.95 3204293497.95 3204293497.95
Accounts
payable 59032829819.11 59032829819.11 59032829819.11
Other
payables 6588756879.48 6588756879.48 6588756879.48
Lease
liabilities 192822570.63 240977160.43 29438043.89 47718409.83 163820706.71
Subtotal 272233222477.22 290780415719.14 155940994114.86 65417541083.16 69421880521.12
(Cont.)
Opening balance
Items
Carrying amount Contract amount not yet discounted Within 1 year 1-3 years Over 3 years
Bank
borrowings 197839011037.27 221286938697.31 77162762558.85 62140808417.55 81983367720.91
Held-for-
trading
financial 544366956.25 544366956.25 544366956.25
liabilities
Derivative
financial 78931785.08 78931785.08 78931785.08
liabilities
Notes payable 4195471402.63 4195471402.63 4195471402.63
Accounts
payable 49744126901.38 49744126901.38 49744126901.38
Other payables 16691133504.47 16691133504.47 16691133504.47
Bonds payable 2037082007.25 2073100000.00 2073100000.00
Lease liabilities 213541186.47 261662503.81 29346490.83 55282901.20 177033111.78
Subtotal 271343664780.80 294875731750.93 149974872643.24 62740458275.00 82160400832.69
(III) Market risk management
Market risk means a risk that the fair value or future cash flow of the financial instrument fluctuates due to
changes in market price. Market risk mainly includes interest risk and foreign currency risk.
1. Interest risk
Interest risk refers to the risk that the fair value of financial instruments or cash flow in the future may fluctuate
due to changes in the market interest rate. The interest-bearing financial instruments with fixed interest rates expose
the Company to fair value interest risk and the interest-bearing financial instruments with floating interest rates
expose the Company to cash flow interest risk. The Company determines the ratio of fixed interest rate and floating
248 / 276 Full Text of 2024 Annual Report
interest rate financial instruments according to the market environment and maintains an appropriate combination
of financial instruments through regular review and monitoring. The cash flow interest risk faced by the Company
is mainly related to the bank borrowings with floating interest rates.As of December 31 2024 the bank borrowings with a floating interest rate of the Company are RMB
155681.1217 million and EUR 54.3935 million (December 31 2023: RMB 157889.1476 million and EUR
60.7927 million). Under the assumption that other variables remain unchanged assuming that the interest rate
changes by 50 benchmark points we believe that it will not have a significant impact on the total profits and
shareholders’ equity.
2. Foreign currency risk
Foreign currency risk means a risk that the fair value or future cash flow of a financial instrument fluctuates
due to a change in the foreign exchange rate. The risk of exchange rate changes faced by the Company is mainly
related to the Company’s foreign currency monetary assets and liabilities. For foreign currency assets and liabilities
in case of short-term imbalance the Company will buy and sell foreign currencies at the market exchange rate when
necessary to ensure that the net risk exposure is maintained at an acceptable level.The Company’s monetary assets and liabilities in foreign currencies at the end of the period are detailed in
Notes VII 58.(1) to the Financial Statements.
2. Financial assets
(1) Classification by transfer method
□Applicable □ Not applicable
Unit: RMB
Ways of transfer Nature of financial Amount of financial Judgement basis of assets transferred assets transferred Derecognition derecognition
The Company has
Discounting of notes Receivables financing 1718503751.55 Derecognized transferred substantially all of the
risks and rewards.The Company has
Endorsement of notes Receivables financing 52671899.36 Derecognized transferred substantially all of the
risks and rewards.Total 1771175650.91
(2) Financial assets derecognized due to transfer
□Applicable □ Not applicable
Unit: RMB
Items Ways of financial assets transfer Amount derecognized
Gains or losses related to
derecognition
Receivables financing Discounting 1718503751.55 3347411.03
Receivables financing Endorsement 52671899.36
Subtotal 1771175650.91 3347411.03
249 / 276 Full Text of 2024 Annual Report
(3) Financial assets transferred with continuing involved assets
□ Applicable □ Not applicable
XIII. Disclosure of fair value
1. Fair value at the end of the period of assets and liabilities measured at fair value
Unit: RMB
Closing fair value
Items Level 1 fair value Level 2 fair value Level 3 fair value
measurement measurement measurement Total
I. Recurring fair value
measurement -- -- -- --
1. Derivative financial
assets 55586387.34 420180297.83 475766685.17
2. Receivables
financing 103225654.46 103225654.46
Total assets at
recurring fair value 55586387.34 420180297.83 103225654.46 578992339.63
measurement
3. Held-for-trading
financial liabilities
(1) Fair value of
leased-in silver 1269256561.53 1269256561.53
4. Derivative financial
liabilities 34655378.23 34655378.23
Total liabilities at
recurring fair value 1303911939.76 1303911939.76
measurement
II. Non-recurring fair
value measurement -- -- -- --
2. Basis for determination of the market prices of sustained and unsustained Level 1 fair value measurement
items
The company’s level 1 fair value measured derivative financial assets/liabilities consist of futures or paper
commodity contracts held at the end of the period the trading financial liabilities are liabilities to repay the leased
silver upon maturity with their fluctuating gains and losses determined based on market fair value.
3. Valuation techniques adopted and the qualitative and quantitative information of important parameters
for continuous and non-continuous Level II fair value measurement items
The Company’s derivative financial assets/liabilities measured at Level 2 fair value consist of forward foreign
exchange contracts whose fair value is determined by the Company using the present value of the difference
between the delivery exchange rate specified in the forward foreign exchange contract and the market forward
exchange rate on the balance sheet date.
4. Valuation techniques adopted and the qualitative and quantitative information of important parameters
for continuous and non-continuous Level III fair value measurement items
250 / 276 Full Text of 2024 Annual Report
The Company’s receivables financing measured at Level 3 fair value consist of bank acceptance bills with
less credit risk and short remaining maturities whose fair value is determined by the Company based on their face
value.XIV. Related party relationships and transactions
1. Parent company of the Company
Parent company Place of
Holding Voting right
registration Business nature Registered capital proportion over proportion over the Company the Company
Zhejiang
Rongsheng Xiaoshan District
Holding Group Hangzhou
Industrial RMB 834.6640
Zhejiang Province investment million
53.16%53.16%
Co. Ltd.Note to information about the Company’s parent company
The ultimate controlling party of the Company is Li Shuirong.Other notes:
Li Shuirong directly holds 6.35% shares of the Company; Zhejiang Rongsheng Holding Group Co. Ltd. holds
53.16% of the shares of the Company and Li Shuirong holds 63.523% of the shares of Zhejiang Rongsheng Holding
Group Co. Ltd. thus indirectly holding 33.77% of the shares of the Company so he holds a total of 40.12% of the
shares of the Company.
2. Information on subsidiaries of the Company
See Note 7 for details of the Company’s subsidiaries.
3. Joint ventures and associates of the Company
See Note VII for details of important joint ventures or associates of the Company.Other joint ventures and associates that form balances in related party transactions with the Company in the current
or previous period are as follows:
Name of joint venture or associate Relationships with the Company
Ningbo Hengyi Trading Co. Ltd. Associate
ZPC ENN (Zhoushan) Gas Co. Ltd. Associate
Zhejiang Dingsheng Petrochemical Engineering Co. Ltd. Associate
Ningbo Coastal Public Pipeline Co. Ltd. Associate
Zhejiang Zhenshi Port Services Co. Ltd. Associate
Zhejiang Derong Chemical Co. Ltd. Associate
Zhoushan ZPC Zhougang Tug Co. Ltd. Associate
Zhejiang Dongjiang Green Petrochemical Technology
Innovation Center Co. Ltd. Associate
4. Other related parties
Related parties Relationships with the Company
251 / 276 Full Text of 2024 Annual Report
Li Jumei Close family member of the actual controller
Sanyuan Holdings Group Co. Ltd. Under control of close family members of the actual controller
Sanyuan Holdings Group Hangzhou Thermal Power Co. Ltd. Under control of close family members of the actual controller
Zhejiang Saintyear Textile Co. Ltd. Under control of close family members of the actual controller
Zhejiang Rongxiang Thermal Power Co. Ltd. Under common control of the same actual controller
Zhejiang Rongtong Logistics Co. Ltd. Under common control of the same actual controller
Ningbo Rongxiang Logistics Co. Ltd. Under common control of the same actual controller
Ningbo Economic and Technological Development Zone
Thermal Power Co. Ltd. Under common control of the same actual controller
Ningbo United Group Co. Ltd. Under common control of the same actual controller
Ningbo United Group Co. Ltd. Qijiashan Hotel Under common control of the same actual controller
Suzhou Shenghui Equipment Co. Ltd. Under common control of the same actual controller
Hangzhou Shengyuan Real Estate Development Co. Ltd. Under common control of the same actual controller
Hangzhou Shengyuan Property Services Co. Ltd. Under common control of the same actual controller
Daishan Chenyu Real Estate Co. Ltd. Under common control of the same actual controller
Rongsheng Coal Co. Ltd. Under common control of the same actual controller
Rongsheng Energy Co. Ltd. Under common control of the same actual controller
Ningbo Qingzhi Chemical Terminal Co. Ltd. Under common control of the same actual controller
Ningbo Qijiashan Chemical Terminal Co. Ltd. Under common control of the same actual controller
Ningbo Haineng Blended Oil Co. Ltd. Under common control of the same actual controller
Hainan Shenggu Petrochemical Equipment Investment Co.Ltd. Under common control of the same actual controller
Xin Heng Rong (HK) Limited Subsidiary of Hainan Yisheng Petrochemical Co. Ltd.Shanghai Shenglanhui Technology Co. Ltd Associate of Hainan Shenggu Petrochemical Equipment Investment Co. Ltd.Hong Kong Yisheng Petrochemical Investment Co. Ltd. Subsidiary of Zhejiang Yisheng Petrochemical Co. Ltd.Ningbo Shengmao Trading Co. Ltd. Subsidiary of Hong Kong Petrochemical Investment Yisheng Co. Ltd.Zhejiang Yixin Chemical Fiber Co. Ltd. Subsidiary of Zhejiang Yisheng Petrochemical Co. Ltd.Dongzhan Shipping Co. Ltd. Associate of Zhejiang Rongtong Logistics Co. Ltd.Aramco Overseas Company B.V. Shareholder
Saudi Arabian Oil Company Parent company of Aramco Overseas Company B.V.Aramco Trading Singapore Pte.Ltd. Subsidiary of Saudi Arabian Oil Company
Saudi Basic Industries Corporation Subsidiary of Saudi Arabian Oil Company
Aramco Trading Company Subsidiary of Saudi Arabian Oil Company
Aramco Trading Fujairah Fze Subsidiary of Aramco Trading Company
SABIC (Shanghai) Trading Co. Ltd. Subsidiary of Saudi Arabian Oil Company
Shanghai Huanqiu Engineering Co. Ltd. The Company’s actual controller serves as its director
Zhoushan Yushan Petrochemical Engineering Co. Ltd. [Note]
Other notes:
[Note]: The Company transferred out the equity of this entity on June 30 2023. As a result the Company no longer
held the equity of this entity after the equity transfer and related party transactions with such entity disclosed in the
notes to financial statements cover the period from January to June 2024.
252 / 276 Full Text of 2024 Annual Report
5. Related party transactions
(1) Related party transactions regarding purchase and sales of goods rendering and receiving of labor
services
Table of the purchase of goods and receiving of labor services
Unit: RMB
Whether it
Related parties Content of Current period Trading limit exceeds the Preceding period transactions cumulative approved approved limit comparative
or not (Y/N)
Saudi Arabian Oil
Company Crude oil 97964759446.07 120000000000.00 No 66719031294.31
Zhejiang
Rongsheng Coal and other
Holding Group materials 13717475115.73 20000000000.00 No 15251114785.47
Co. Ltd.Aramco Trading
Fujairah Fze Fuel oil 3166540805.77 No
Zhejiang
Dingsheng Device guarantee
Petrochemical service and
Engineering Co. maintenance
1157136315.87 800000000.00 Yes 665220775.65
Ltd. service
Aramco Trading Fuel oil crude
Singapore Pte.Ltd. oil naphtha 729553790.76 No 715684419.41
SABIC (Shanghai)
Trading Co. Ltd. Ethylene glycol 716089896.37 No 451575907.40
Zhejiang
Rongtong Freight 683589630.60 1000000000.00 No 829079472.16
Logistics Co. Ltd.Zhejiang Derong Processing fee
Chemical Co. Ltd. cracking C5 and 386591695.92 600000000.00 No 589026230.79 m-pentadiene
Suzhou Shenghui
Equipment Co. Equipment and materials 380313029.51 600000000.00 No 269205160.24 Ltd.Zhejiang Yisheng
Petrochemical Co. Isophthalic acid freight 296501943.09 300000000.00 No 102296411.49 Ltd.Ningbo Hengyi
Trading Co. Ltd. PTA 290142203.61 1000000000.00 No 618253217.70
Ningbo Qingzhi
Chemical Lump sum fee for
Terminal Co. Ltd. port operation
62997478.57 100000000.00 No 74439063.16
Shanghai
Shenglanhui
Technology Co. Process package 39139104.44
Ltd
Shanghai Huanqiu
Engineering Co. Engineering design service 38861013.25 30000000.00 Yes 28970687.63 Ltd.
253 / 276 Full Text of 2024 Annual Report
Xin Heng Rong
(HK) Limited PX 29726102.82
Ningbo Haineng
Blended Oil Co. Warehousing
Ltd. service
28018189.56 50000000.00 No 29783142.66
Hainan Yisheng
Petrochemical Co. PTA etc. 19594396.81 305000000.00 No 18030557.52
Ltd.Zhejiang
Rongxiang High-pressure
Thermal Power steam 18499078.25
Co. Ltd.Ningbo Rongxiang
Logistics Co. Ltd. Freight 17916030.26 30000000.00 No 26641187.46
Sanyuan Holdings
Group Hangzhou
Thermal Power Steam 12973362.42 30000000.00 No 21654594.51
Co. Ltd.Zhejiang Saintyear Work clothes and
Textile Co. Ltd. other materials 4634374.66 15000000.00 No 17384105.66
Ningbo United
Group Co. Ltd. Hotel service 226229.16 1000000.00 No 171052.90
Qijiashan Hotel
Dongzhan
Shipping Co. Ltd. Freight 296097.74 30000000.00 No 27587848.85
Ningbo Economic
and Technological
Development Zone Electricity 163352.08 1000000.00 No 160963.22
Thermal Power
Co. Ltd.Total 119761738683.32 86455310878.19
Selling commodities/offering labor
Unit: RMB
Related party Contents of related party Preceding period transaction Current period cumulative comparative
Zhejiang Yisheng
Petrochemical Co. Ltd. PTA PX 8456472338.73 9086732238.95
Ningbo Hengyi Trading Co.Ltd. PX 3064892973.06
Zhejiang Derong Chemical Power energy industrial
Co. Ltd. pyrolysis C5 etc. 780656247.56 943900741.37
SABIC (Shanghai) Trading
Co. Ltd. PTA 774528858.93 562937837.46
Zhejiang Yixin Chemical
Fiber Co. Ltd. PTA 331991150.43 147504424.78
Zhoushan Yushan
Petrochemical Engineering Power 253944736.06 227688076.20
Co. Ltd.Aramco Trading Singapore
Pte.Ltd. Diesel 225986336.88 837228882.63
Ningbo Shengmao Trading
Co. Ltd. PX PTA 112686769.41 857363452.14
254 / 276 Full Text of 2024 Annual Report
Zhejiang Rongtong Logistics Automotive diesel hardware
Co. Ltd. spare parts 21014955.44 24940833.81
Zhoushan ZPC Zhougang
Tug Co. Ltd. Vehicle diesel 9266952.73 12288361.89
Zhejiang Dingsheng
Petrochemical Engineering Vehicle diesel 2526991.15 2464159.29
Co. Ltd.Ningbo Rongxiang Logistics
Co. Ltd. Vehicle diesel 1059756.64 4784882.22
Zhejiang Rongxiang Thermal Digital electronic truck scales
Power Co. Ltd. electricity fees 460176.99[Note]
Zhejiang Rongsheng Holding
Group Co. Ltd. Electric charge [Note] [Note]
Hainan Yisheng
Petrochemical Co. Ltd. PTA PX 240265.49 223053907.61
Suzhou Shenghui Equipment
Co. Ltd. Vehicle diesel 12389.38 20353.98
Ningbo Coastal Public
Pipeline Co. Ltd. Service charge 358742.95
Zhejiang Dongjiang Green
Petrochemical Technology Office supplies 683.19
Innovation Center Co. Ltd.Total 14035741582.07 12931266895.28
Note to related party transactions of goods purchase & sale and labor services rendering & receiving
[Note]: The Company cumulatively sold RMB 2974125.08 of electricity (with carrying amount recorded by net
amount method) to Zhejiang Rongxiang Thermal Power Co. Ltd. and Zhejiang Rongsheng Holding Group Co.Ltd. this year and the accumulated electricity sold to Zhejiang Rongsheng Holding Group Co. Ltd. in the same
period last year amounted to RMB 1374709.77
(2) Related party leases
The Company as the Lessor
Unit: RMB
Lessees Types of assets leased Lease income for the Lease income for the current period preceding period
Zhejiang Rongtong Logistics
Co. Ltd. Buildings 425788.99 1284403.67
The Company as the Lessee
Unit: RMB
Lease expenses paid for short-term
leases and leases of low-value assets Rent paid
Lessors Types of assets with simplified approach if applicable leased
Current period Preceding period Current period Preceding period
cumulative comparative cumulative comparative
Hangzhou
Shengyuan
Property Services Parking lots 56023.81 175428.61
Co. Ltd.
255 / 276 Full Text of 2024 Annual Report
Hangzhou
Shengyuan Real
Estate Buildings 5900823.31 4276509.52
Development Co.Ltd.Zhejiang
Rongsheng
Holding Group Buildings 550458.72 550458.72
Co. Ltd.Zhejiang Yixin
Chemical Fiber Buildings 1031670.22 365845.33
Co. Ltd.
(3) Related party guarantees
The Company as the guarantor
Unit: RMB
Whether the
Guarantors Amount guaranteed Commencement date Maturity date guarantee is mature
(Y/N)
Sanyuan Holdings 80000000.00
Group Co. Ltd. January 1 2024 December 28 2026 No
Zhejiang Rongsheng
Holding Group Co. 77381390732.22 January 29 2021 June 11 2028 No
Ltd.Zhejiang Rongsheng
Holding Group Co. 432251939.80 April 28 2020 April 1 2029 No
Ltd. [Note 1]
Zhejiang Rongsheng
Holding Group Co. 812499999.94 January 26 2022 December 20 2027 No
Ltd. [Note 2]
Zhejiang Rongsheng
Holding Group Co. 2440429610.94 November 22 2021 September 24 2028 No
Ltd. [Note 3]
Zhejiang Rongsheng
Holding Group Co. 17142934000.00 November 14 2022 October 30 2030 No
Ltd. [Note 4]
Zhejiang Rongsheng
Holding Group Co. 3900000000.00 April 23 2024 February 15 2033 No
Ltd. [Note 7]
Zhejiang Rongsheng
Holding Group Co. 2756666700.00 January 13 2023 August 29 2026 No
Ltd. [Note 8]
Zhejiang Rongsheng
Holding Group Co. 28681975200.00
Ltd. the Company January 20 2021 November 15 2032 No
[Note 6]
Zhejiang Rongsheng 4418314565.89 January 30 2024 March 10 2026 No
Holding Group Co.
256 / 276 Full Text of 2024 Annual Report
Ltd. the Company
Zhejiang Rongsheng
Holding Group Co.Ltd. the Company Li 16283681700.00 July 31 2018 July 30 2030 No
Shuirong Li Jumei
[Note 5]
Zhejiang Rongsheng
Holding Group Co. 2633246315.93 July 5 2024 June 27 2025 No
Ltd.Zhejiang Rongsheng
Holding Group Co. 40000000.00 September 9 2024 March 6 2025 No
Ltd. [Note 9]
Zhejiang Rongsheng
Holding Group Co. 45771784829.90 January 18 2024 December 18 2025 No
Ltd.Zhejiang Rongsheng
Holding Group Co. 2509735348.57 March 22 2023 April 18 2025 No
Ltd.Zhejiang Rongsheng
Holding Group Co. 183671335.05 May 12 2023 March 30 2026 No
Ltd.Zhejiang Rongsheng
Holding Group Co. 215206422.34 May 22 2024 October 30 2026 No
Ltd. [Note 10]
Zhejiang Rongsheng
Holding Group Co. 3162896.00 October 30 2024 March 21 2025 No
Ltd. [Note 10]
Zhejiang Rongsheng
Holding Group Co. 24178902.24 October 25 2023 January 31 2026 No
Ltd. [Note 11]
Zhejiang Rongsheng
Holding Group Co. 25968180.42 April 25 2023 August 26 2026 No
Ltd. [Note 11]
Zhejiang Rongsheng
Holding Group Co. 92730.36 November 2 2021 January 1 2025 No
Ltd. [Note 12]
Zhejiang Rongsheng
Holding Group Co. 3762.85 November 18 2021 January 1 2025 No
Ltd. [Note 12]
Zhejiang Rongsheng
Holding Group Co. 496000000.00 December 2 2024 December 2 2025 No
Ltd. the Company
Zhejiang Rongsheng
Holding Group Co. 2894260400.00 August 7 2023 July 29 2025 No
Ltd.Description of related guarantees
[Note 1] Zhejiang Rongsheng Holding Group Co. Ltd. provides joint liability guarantee for 100% of the
guarantee amount. Ningbo Niluoshan New Energy Co. Ltd. a subsidiary of the Company provided mortgage
257 / 276 Full Text of 2024 Annual Report
guarantee for fixed assets and intangible assets of RMB 103511200 in the book balance.[Note 2] Zhejiang Rongsheng Holding Group Co. Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. Ningbo Zhongjin Petrochemical Co. Ltd. a subsidiary of the Company provided
mortgage guarantee with fixed assets of RMB 3101440400 in the book balance.[Note 3] Zhejiang Rongsheng Holding Group Co. Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. Zhejiang Yisheng New Materials Co. Ltd. a subsidiary of the Company provided
mortgage guarantee with machinery and equipment of RMB 4171699100 in the book balance.[Note 4]: Zhejiang Rongsheng Holding Group Co. Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. The Company’s subsidiary Zhejiang Petroleum & Chemical Co. Ltd. has provided
a mortgage guarantee with the completed assets of the newly added 1.4 million tons/year ethylene and downstream
chemical plant (Phase II project product structure optimization) project (including but not limited to the mortgage
guarantee provided in the form of land use right above-ground structures and equipment of the project after the
completion acceptance of the construction project).[Note 5] Zhejiang Rongsheng Holding Group Co. Ltd. and the Company provide joint liability guarantee for
51% of the guarantee amount. The Company’s subsidiary Zhejiang Petroleum & Chemical Co. Ltd. has provided
a mortgage guarantee with the completed asset-refining and chemical integration project with an annual output of
40 million tons (including but not limited to the mortgage guarantee provided in the form of land use right above-
ground structures and equipment of the project after the completion acceptance of the construction project)
[Note 6] Zhejiang Rongsheng Holding Group Co. Ltd. and the Company provide joint liability guarantee for
60% of the guarantee amount. The Company’s subsidiary Zhejiang Petroleum & Chemical Co. Ltd. has provided
a mortgage guarantee with the completed asset-refining and chemical integration project with an annual output of
40 million tons (including but not limited to the mortgage guarantee provided in the form of land use right above-
ground structures and equipment of the project after the completion acceptance of the construction project)
[Note 7] Zhejiang Rongsheng Holding Group Co. Ltd. provides joint liability guarantee for 100% of the
guarantee amount. The Company’s subsidiary Zhejiang Petroleum & Chemical Co. Ltd. provides a mortgage
guarantee with the all asset-high-performance resin formed (including but not limited to the mortgage guarantee
provided in the form of land use right above-ground structures and equipment of the project after the completion
acceptance of the construction project).[Note 8] Zhejiang Rongsheng Holding Group Co. Ltd. provides joint liability guarantee for 100% of the
guarantee amount. The Company’s subsidiary Zhejiang Yisheng New Materials Co. Ltd. provides a mortgage
guarantee by machinery and equipment worth RMB 4759.2430 million in the book balance.[Note 9] Zhejiang Rongsheng Holding Group Co. Ltd. provides joint liability guarantee for 100% of the
guarantee amount and Zhejiang Yongsheng Technology Co. Ltd. a subsidiary of the Company pledges with the
certificate of deposit of RMB 10 million.[Note 10]: Zhejiang Rongsheng Holding Group Co. Ltd. has provided joint and several liability guarantees for
100% of the guarantee amount. The Company’s subsidiary Zhejiang Petroleum & Chemical Co. Ltd. provides a
mortgage guarantee with the all asset-high-performance resin formed (including but not limited to the mortgage
guarantee provided in the form of land use right above-ground structures and equipment of the project after the
completion acceptance of the construction project).[Note 11] Zhejiang Rongsheng Holding Group Co. Ltd. provides joint liability guarantee for 100% of the
guarantee amount. The Company’s subsidiary Zhejiang Petroleum & Chemical Co. Ltd. has provided a mortgage
guarantee with the completed assets of the newly added 1.4 million tons/year ethylene and downstream chemical
plant (Phase II project product structure optimization) project (including but not limited to the mortgage guarantee
provided in the form of land use right above-ground structures and equipment of the project after the completion
acceptance of the construction project).
258 / 276 Full Text of 2024 Annual Report
[Note 12] Zhejiang Rongsheng Holding Group Co. Ltd. and the Company provide joint liability guarantee for
60% of the guarantee amount. The Company’s subsidiary Zhejiang Petroleum & Chemical Co. Ltd. has provided
a mortgage guarantee with the completed asset-refining and chemical integration project with an annual output of
40 million tons (including but not limited to the mortgage guarantee provided in the form of land use right above-
ground structures and equipment of the project after the completion acceptance of the construction project)
(4) Asset transfer and debt restructuring of related parties
Unit: RMB
Related party Content of transactions Current period cumulative Preceding period comparative
Zhejiang Dongjiang Green
Petrochemical Technology Transfer of engineering 36371681.41
Innovation Center Co. Ltd. equipment
Hainan Yisheng
Petrochemical Co. Ltd. Transfer of fixed assets 29203539.82
(5) Remuneration of key management personnel
Unit: RMB 10000
Items Current period cumulative Preceding period comparative
Key management’s emoluments 1237.91 1259.14
(6) Other related party transactions
1. Fund borrowing from/to related parties
(1)At the beginning of the period the Company had RMB 14615.7636 million payable to Zhejiang Rongsheng
Holding Group Co. Ltd.; in the current period the Company has borrowed RMB 3148.5 million from Zhejiang
Rongsheng Holding Group Co. Ltd. made RMB 199.3845 million provisions for fund possession cost and returned
RMB 12415.0125 million of principal and interest on a cumulative basis. As of December 31 2024 the amount
payable by the Company is RMB 5548.6356 million.During the current period the subsidiary Zhejiang Shengyuan Chemical Fiber Co. Ltd. borrowed a cumulative
amount of RMB 201.50 million from Zhejiang Rongsheng Holding Group Co. Ltd. and fully repaid RMB 201.50
million. As of December 31 2024 Zhejiang Shengyuan Chemical Fiber Co. Ltd. had fully settled the
aforementioned amounts.
(2) At the beginning of the period the subsidiary Zhejiang Yisheng New Materials Co. Ltd. had entrusted loan
principal payable of RMB 786.00 million and interest payable of RMB 1.1492 million to Zhejiang Yisheng
Petrochemical Co. Ltd. During the period it repaid RMB 786.00 million at maturity accrued interest of RMB
17.3039 million and paid interest of RMB 18.4531 million. As of December 31 2024 the aforementioned amounts
had been fully settled.
(3) At the beginning of the period the amount receivables of subsidiary Zhejiang Petroleum & Chemical Co.
Ltd. from ZPC ENN (Zhoushan) Gas Co. Ltd. were RMB 10.8 million with RMB 416500 provisions for interest
RMB 416500 of interest collected. As of December 31 2024 the amount receivables of Zhejiang Petroleum &
Chemical Co. Ltd. were RMB 10.8 million.
2. Details on payments for the project contracts under execution made by the Company and subsidiaries to
related parties are as follows:
259 / 276 Full Text of 2024 Annual Report
Unit: RMB 10000
Related Parties Current period cumu Preceding period lative comparative
Suzhou Shenghui Equipment Co. Ltd. 11667.86 11612.49
Zhejiang Dongjiang Green Petrochemical Technology Innovation Center Co.Ltd. 42565.00 1100.00
Shanghai Shenglanhui Technology Co. Ltd. 3992.44
Zhejiang Dingsheng Petrochemical Engineering Co. Ltd. 3728.23
Total 58225.31 16440.72
3.As of December 31 2024 the deposit balance of the Company and its subsidiaries in the related party
Zhejiang Xiaoshan Rural Commercial Bank Co. Ltd. was RMB 123447248.78 USD 1348812.92 and EUR
129.66.
As of December 31 2023 the Company and its subsidiaries had deposit balances with the related party
Zhejiang Xiaoshan Rural Commercial Bank Co. Ltd. amounting to RMB 602458616.33 USD 1066990.04 and
EUR 129.66.
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Items Related parties
Book balance Provision for bad Book balance Provision for bad debts debts
Accounts Zhejiang Yisheng
receivable Petrochemical Co. 360195827.42 120665086.62 317158242.68 38391748.43 Ltd.SABIC
(SHANGHAI) TRADING CO. 42515409.95 2125770.50 71159154.19 3557957.71
LTD.Zhejiang Derong Chemical Co. Ltd. 76010449.61 3800522.48 57463699.62 2873184.98
Subtotal 478721686.98 126591379.60 445781096.49 44822891.12
Hangzhou
Shengyuan Real
Advances paid Estate 3806092.50 3567132.35
Development Co.Ltd.Ningbo Hengyi Trading Co. Ltd. 6000000.00
Subtotal 3806092.50 9567132.35
ZPC ENN
Other receivables (Zhoushan) Gas 10800000.00 5400000.00 10800000.00 1893309.57
Co. Ltd.Rongsheng Energy Co. Ltd. 10665.06 533.25
Subtotal 10800000.00 5400000.00 10810665.06 1893842.82
260 / 276 Full Text of 2024 Annual Report
(2) Payables
Unit: RMB
Items Related parties Closing book balance Opening book balance
Accounts payable Rongsheng Petrochemical (Singapore) Pte Ltd [Note] 30257905558.70 17500740384.58
Ningbo Zhongjin Petrochemical Co. Ltd. [Note] 1317273481.65 1004420000.00
Yisheng Dahua Petrochemical Co. Ltd. [Note] 3437999698.00 770000000.00
Zhejiang Yisheng New Materials Co. Ltd. [Note] 2049030000.00 941459043.38
The Company [Note] 1286000000.00 385000000.00
Zhejiang Petroleum & Chemical Co. Ltd. [Note] 1122747553.24 380248726.38
Dalian Rongxincheng Trading Co. Ltd. [Note] 667864260.54 494747501.53
Ningbo Rongxincheng Trading Co. Ltd. [Note] 110000000.00
Zhejiang Shengyuan Chemical Fiber Co. Ltd. [Note] 158000000.00
Zhejiang Rongtong Chemical Fiber New Material Co. Ltd. [Note] 465060958.88
SAUDI ARABIAN OIL COMPANY 4351562189.78 7482166334.12
Zhejiang Rongtong Logistics Co. Ltd. 128585887.48 114735427.56
Zhejiang Dingsheng Petrochemical Engineering Co. Ltd. 205429347.45 320000.00
Xin Heng Rong (HK) Limited 29726102.82
Zhejiang Rongxiang Thermal Power Co. Ltd. 17675013.16
Ningbo Qingzhi Chemical Terminal Co. Ltd. 4979118.97 6456923.33
Suzhou Shenghui Equipment Co. Ltd. 3296884.96 19581790.48
Zhejiang Saintyear Textile Co. Ltd. 3064391.99 3196676.08
Ningbo Rongxiang Logistics Co. Ltd. 2222834.88 1811859.97
Sanyuan Holdings Group Hangzhou Thermal Power Co. Ltd. 974805.00
Shanghai Huanqiu Engineering Co. Ltd. 900000.00 3672000.00
ARAMCO TRADING SINGAPORE PTE LTD 365498003.53
Dongzhan Shipping Co. Ltd. 2668604.42
Ningbo Haineng Blended Oil Co. Ltd. 5538838.28 379208.29
Electric Power Branch Thermal Power
Co. Ltd. of Ningbo Economic and 53941.82
Technological Development Zone
Ningbo United Group Co. Ltd. 8058.00
Subtotal 45002775966.90 30100225442.35
261 / 276 Full Text of 2024 Annual Report
Contract liabilities
and other current Ningbo Hengyi Trading Co. Ltd. 16297590.39
liabilities
Zhoushan ZPC Zhougang Tug Co. Ltd. 782380.80 254037.39
Ningbo Shengmao Trading Co. Ltd. 518282.64 302096.62
Zhejiang Saintyear Textile Co. Ltd. 11048.15
Zhejiang Rongtong Logistics Co. Ltd. 2268575.00
Subtotal 17598253.83 2835757.16
Other payables Zhejiang Rongsheng Holding Group Co. Ltd. 5548635694.24 14615763666.09
Zhejiang Dingsheng Petrochemical Engineering Co. Ltd. 2010840.00 11700.00
Zhejiang Rongtong Logistics Co. Ltd. 1005000.00
Dongzhan Shipping Co. Ltd. 500000.00
Suzhou Shenghui Equipment Co. Ltd. 500300.00
Zhejiang Yisheng Petrochemical Co. Ltd. 787149197.50
Zhoushan Yushan Petrochemical Engineering Co. Ltd. 160956591.37
Zhejiang Yixin Chemical Fiber Co. Ltd. 1031670.22 365845.33
Subtotal 5553683504.46 15564247000.29
[Note]: It is due to the Letters of Credit (L/Cs) issued by the Company and its subsidiaries. Rongsheng
Petrochemical (Singapore) Pte Ltd. Yisheng Petrochemical Co. Ltd. Zhejiang Yisheng New Materials Co. Ltd.Ningbo Zhongjin Petrochemical Co. Ltd. the Company Zhejiang Petroleum & Chemical Co. Ltd. Dalian
Rongxincheng Trading Co. Ltd. Ningbo Rongxincheng Trading Co. Ltd. Zhejiang Shengyuan Chemical Fiber
Co. Ltd. and Zhejiang Rongtong Chemical Fiber New Materials Co. Ltd. have discounted the L/Cs upon receipt
XV. Commitments and contingencies
1. Significant commitments
Significant commitments at the balance sheet date
1. As of December 31 2024 the number of letters of credit issued but not withdrawn in the financial institutions
including Bank of Communications Hangzhou Xiaoshan Sub-Branch by the Company and its holding subsidiaries
Zhejiang Shengyuan Chemical Fiber Co. Ltd. Yisheng Dahua Petrochemical Co. Ltd. Zhejiang Petroleum &
Chemical Co. Ltd. Rongsheng Petrochemical (Singapore) Pte Ltd. Zhejiang Yongsheng technology Co. Ltd.Ningbo Zhongjin Petrochemical Co. Ltd. Zhejiang Yisheng New Materials Co. Ltd. and Zhejiang Yongsheng
technology Co. Ltd. were RMB 48870.5520 million USD 360.2443 million EUR 56.6516 million GBP 629000.
2. As of December 31 2024 the undue letters of guarantee of the Company and its subsidiaries are as follows:
Unit: RMB 10000
Opening bank Issuers Beneficiaries Amount
Industrial and Commercial
Bank of China Limited Zhejiang Petroleum & Hangzhou Customs District P. R.Zhoushan Branch Chemical Co. Ltd. China
RMB 100000.00
262 / 276 Full Text of 2024 Annual Report
Ping An Bank Co. Ltd. Zhejiang Petroleum & Hangzhou Customs District P. R.Ningbo Zhenhai Sub-branch Chemical Co. Ltd. China RMB 32000.00
China Construction Bank Zhejiang Petroleum & Hangzhou Customs District P. R.Corporation Zhoushan Branch Chemical Co. Ltd. China RMB 50000.00
Shanghai Pudong
Development Bank Co. Ltd. Zhejiang Petroleum & Standard Chartered (China) Co. Chemical Co. Ltd. Ltd. RMB 42000.00 Zhoushan Branch
Bank of China Co. Ltd. Zhejiang Petroleum & Standard Chartered (China) Co.Zhoushan Branch Chemical Co. Ltd. Ltd. RMB 1000.00
China Construction Bank Zhejiang Petroleum & Standard Chartered (China) Co.Corporation Zhoushan Branch Chemical Co. Ltd. Ltd. RMB 1000.00
Postal Saving Bank of China Zhejiang Petroleum & Standard Chartered (China) Co.Co. Ltd. Zhoushan Branch Chemical Co. Ltd. Ltd. RMB 3000.00
China Construction Bank Zhejiang Petroleum & Mitsubishi Corporation RtM China
Corporation Zhoushan Branch Chemical Co. Ltd. Limited RMB 4241.82
China Construction Bank Zhejiang Petroleum &
Corporation Zhoushan Branch Chemical Co. Ltd. Guiyan Resources (Yimen) Co. Ltd. RMB 6684.21
Bank of China Co. Ltd. Zhejiang Petroleum & Hangzhou Customs District P. R.Zhoushan Branch Chemical Co. Ltd. China RMB 15500.00
Agricultural Bank of China Zhejiang Petroleum & Hangzhou Customs District P. R.Limited Xiaoshan Branch Chemical Co. Ltd. China RMB 14970.00
Bank of Communications Co.Ltd. Hangzhou Xiaoshan Zhejiang Petroleum & Hangzhou Customs District P. R. Chemical Co. Ltd. China RMB 7280.00 Branch
Bank of Communications Co.Ltd. Hangzhou Xiaoshan Zhejiang Petroleum & Hangzhou Customs District P. R. Chemical Co. Ltd. China RMB 6760.00 Branch
Agricultural Bank of China Zhejiang Petroleum & Hangzhou Customs District P. R.Limited Xiaoshan Branch Chemical Co. Ltd. China RMB 4590.00
China Construction Bank Zhejiang Petroleum & CCC Water Resources and
Corporation Zhoushan Branch Chemical Co. Ltd. Hydropower Construction Co. Ltd. RMB 300.00
Bank of China Limited Ningbo Zhongjin CCC Water Resources and
Ningbo Zhenhai Sub-branch Petrochemical Co. Ltd. Hydropower Construction Co. Ltd. RMB 100.00
2. Contingencies
(1) Important contingencies on balance sheet date
As of the balance sheet date the Company has no significant contingencies to be disclosed.
(2) Explanation even if the Company has no significant contingencies to be disclosed
The Company has no important contingencies to be disclosed.XVI. Events after the balance sheet date
Profit distribution after the balance sheet date
Pursuant to the profit distribution plan deliberated and approved by the 23rd meeting
of the sixth session of the Board of Directors dated April 24 2025 the Company
plans to distribute cash dividend of RMB 1.00 (tax inclusive) per 10 shares to all
shareholders. Cash dividend totaling RMB 957229214.20 (tax inclusive) is to be
Profit or dividend planned to be distributed which is calculated based on the Company’s total share less
distributed accumulative repurchased shares of 553232858 shares as of the date of report i.e.
9572292142 shares with remaining undistributed profit carried forward to the
following period. Shares in the Company’s special securities account for repurchase
are not counted in this distribution. If the Company’s total share capital changes due
to convertible bond conversion share repurchase repurchase and cancellation of
263 / 276 Full Text of 2024 Annual Report
equity incentive shares granted grant and registration of reserved shares etc. before
the equity registration date of equity distribution total distribution amount will be
adjusted with distribution proportion unchanged.XVII. Other significant events
1. Segment information
(1) Identification basis and accounting policies for reportable segments
Factors to be considered in determining the reportable segments:
Reportable segments are identified according to the structure of the Company’s internal organization
management requirements and internal reporting system and based on business segments. Assessments are
respectively performed on the operation performance of petrochemical production business polyester fiber
manufacturing business and trading business. Assets and liabilities shared by different segments are allocated among
segments proportionate to their respective sizes.
(2) Financial information of reportable segments
Unit: RMB
Refinery Chemical Polyester fiber
Items production production manufacturing Trading Inter-segment
business business business business offsetting
Total
Revenue from 13935647650 20386823069 18548477926 19490186198 -
1.596.63.288.1223198716594
32468788117
main operations 0.71 1.91
Costs of main 11879369807 18793802293 18236630577 19442325121 -23185903747 28753256533
operations 6.54 2.86 .49 7.23 0.46 3.66
-
Total assets 355095895569.44 62858616598 11902473349 37784594418.10 .19 52011041332.75 3.98
41061353445 8192466133. -Total liabilities 244352482186.24 10584487880 28302181388.78 05 .76 4.31
XVIII. Notes to main items in financial statements of the parent company
1. Accounts receivable
(1) Age analysis
Unit: RMB
Ages Closing book balance Opening book balance
Within 1 year (inclusive of 1 year) 2600376.23 15627737.43
1-2 years 119.32 3459098.34
2-3 years 165.94 2988301.68
Over 3 years 29466.76 101666.96
264 / 276 Full Text of 2024 Annual Report
Total 2630128.25 22176804.41
(2) Classified disclosure by bad debt accrual method
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad Book balance Provision for bad Carry Carry
Categories debts debts ing ing
Amou % to Provision amou % to Provision amouproportio
nt total Amount nt Amount total Amount
proportio
n n nt
Receivables
with
provision 2630 2005
made on a 128.2
100.00159547.2470221768212545
5%28
6.07%580.9704.41100.00%4.169.58%1350.
collective 25
basis
26302005
Total 128.2 100.00 159547.% 28 6.07%
2470221768
580.9704.41100.00%
212545
4.169.58%1350.525
Provision for bad debt by combination: 159547.28
Unit: RMB
Closing balance
Ages
Book balance Provision for bad debts Provision proportion
Within 1 year 2600376.23 130018.81 5.00%
1-2 year(s) 119.32 11.93 10.00%
2-3 years 165.94 49.78 30.00%
Over 3 years 29466.76 29466.76 100.00%
Total 2630128.25 159547.28 6.07%
If the provision for bad debts of accounts receivable is accrued according to the general model of expected credit
loss:
□ Applicable □ Not applicable
(3) Bad debt reserves accrual recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Increase/Decrease
Items Opening Closing balance Accrual Recovery or Write-off Others balance
reversal
Receivables with
provision made on a 2125454.16 -1965906.88 159547.28
collective basis
Total 2125454.16 -1965906.88 159547.28
265 / 276 Full Text of 2024 Annual Report
(4) Details of the top 5 debtors with largest balances of accounts receivable
Unit: RMB
Closing Closing Closing Proportion to the Provision for bad debts balance balance of total balance of of accounts receivable
Debtors balance of accounts of accounts accounts receivable
receivable contract receivable and assets contract assets
Zhejiang Qiangqiang
Industry Co. Ltd. 870452.75 0.00 870452.75 33.10% 43522.64
INDUSTRIA
TECNOLOGICA MM 656772.33 0.00 656772.33 24.97% 32838.62
SEVENO’CLOCKRES
OURCESLIMITED 386345.58 0.00 386345.58 14.69% 19317.28
AlpineS.A.THRUKAP
AKTEXTILECO.LTD. 258917.54 0.00 258917.54 9.84% 12945.88
PPH LEGS Sp.zo.o. 195049.40 0.00 195049.40 7.42% 9752.47
Subtotal 2367537.60 0.00 2367537.60 90.02% 118376.88
2. Other receivables
Unit: RMB
Items Closing balance Opening balance
Dividend receivable 550000000.00 1230000000.00
Other receivables 1828142849.26 2049228160.71
Total 2378142849.26 3279228160.71
(1) Dividend receivable
1) Classification of dividend receivable
Unit: RMB
Items (or investees) Closing balance Opening balance
Hong Kong Sheng Hui Limited 550000000.00 550000000.00
Ningbo Zhongjin Petrochemical Co.Ltd. 300000000.00
Zhejiang Yongsheng Technology Co.Ltd. 280000000.00
Zhejiang Shengyuan Chemical Fiber Co.Ltd. 100000000.00
Subtotal 550000000.00 1230000000.00
2) Significant dividends receivable aged over 1 year
Unit: RMB
Items (or investees) Closing balance Ages Reasons for balance Whether impaired and judgment basis
Hong Kong Sheng Hui It is expected that there
Limited 550000000.00 1-2 years over 3 years Not yet arranged will be no risk of
collection as the
266 / 276 Full Text of 2024 Annual Report
subsidiary operates
normally.Subtotal 550000000.00
3) Classified disclosure by bad debt accrual method
□ Applicable □ Not applicable
(2) Other receivables
1) Other receivables categorized by nature
Unit: RMB
Nature of receivables Closing book balance Opening book balance
Balances due from related parties within
the consolidation scope 1133655809.38 1299250326.32
Subsidies receivable 694020000.00 744000000.00
Petty cash receivable 2646204.77 2169706.59
Intercompany balances 34193.30
Security deposits 799.78 6312327.58
Total 1830357007.23 2051732360.49
2) Age analysis
Unit: RMB
Ages Closing book balance Opening book balance
Within 1 year (inclusive of 1 year) 811917103.99 1676042783.57
1-2 years 642750326.32
2-3 years 373500000.00
Over 3 years 375689576.92 2189576.92
Total 1830357007.23 2051732360.49
3) Classified disclosure by bad debt accrual method
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad Book balance Provision for bad
Categor debts debts Carryin Carry
ies Provi g Provis ing
% to sion amount % to ion amouAmount total Amount propo Amount total Amount propo nt
rtion rtion
Receiva
bles
with
provisio 1830357 100.00 2214157. 0.12% 182814 20517323 100.00 2504199.
2049
n made 007.23 % 97 2849.26 60.49 % 78 0.12% 2281
on a 60.71
collectiv
e basis
2049
Subtotal 1830357 100.00 2214157. 182814 20517323 100.00 2504199.007.23 % 97 0.12% 2849.26 60.49 % 78 0.12% 228160.71
267 / 276 Full Text of 2024 Annual Report
Provision for bad debt by combination: RMB 2214157.97
Unit: RMB
Closing balance
Portfolios
Book balance Provision for bad debts Provision proportion
Balances due from related
parties within the 1133655809.38
consolidation scope
Subsidies receivable 694020000.00
Petty cash receivable 2646204.77 2212408.31 83.61%
Intercompany balances 34193.30 1709.67 5.00%
Security deposits 799.78 39.99 5.00%
Subtotal 1830357007.23 2214157.97 0.12%
Provision for bad debts is made according to the general model of expected credit loss:
Unit: RMB
Stage 1 Stage 2 Stage 3
Provision for bad
12?month expected Lifetime expected Lifetime expected debts Subtotal
credit losses credit losses (credit not credit losses (credit impaired) impaired)
Opening balance 314622.86 2189576.92 2504199.78
Opening balance in the
current period -- -- --
--Transferred to stage 2
--Transferred to stage 3
--Reversed to stage 2
--Reversed to stage 1
Provision made in the
current period -290041.81 -290041.81
Provision recovered or
reversed in the current
period
Provision written off in
the current period
Other changes
Closing balance 24581.05 2189576.92 2214157.97
Provision proportion
(%)0.010.580.12
Changes in the carrying amount of the provision for losses that are significant in amount during the current period
□ Applicable □ Not applicable
4) Details of the top 5 debtors with largest balances
Unit: RMB
Provision for bad
Debtors Nature of Closing book
Proportion to the
receivables balance Ages total balance of
debts at the
other receivables balance sheet date
Rongsheng New Balances due from 634734348.66 Within 1 year 1-2
Materials related parties years 34.68%
268 / 276 Full Text of 2024 Annual Report
(Taizhou) Co. within the
Ltd. consolidation
scope
Yinong Town
People’s
Government of Government funds receivable 594020000.00 Within 1 year 32.45% Xiaoshan District
Hangzhou City
Dalian Yisheng Current account of
Investment Co. related parties within the scope of 373500000.00 Over 3 years 20.41% Ltd. consolidation
Zhejiang Current account of
Petroleum & related parties 114182597.36 Within 1 year 1-2 6.24%
Chemical Co. Ltd. within the scope of years consolidation
Hangzhou
Xiaoshan District Government
Investment receivables 100000000.00 Within 1 year 5.46%
Promotion Bureau
Total 1816436946.02 99.24%
3. Long-term equity investments
Unit: RMB
Closing balance Opening balance
Items
Book balance Provision for Carrying Book balance Provision for Carrying impairment amount impairment amount
Investments in 4384310280 4384310280 40951102808 40951102808subsidiaries 8.47 8.47 .47 .47
Investments in
associates and 4285931338. 4285931338 3916960592. 3916960592.joint ventures 65 .65 70 70
Total 4812903414 4812903414 44868063401 448680634017.12 7.12 .17 .17
(1) Investments in subsidiaries
Unit: RMB
Opening Increase and decrease in the current period
Opening balance of Closing balance Closing
Investees balance provision balance of (carrying for Investments Investment Provision for (carryinOther g provision for amount) impairmen increased s decreased impairment amount) impairment t
Zhejiang
Petroleum 28457242 153000000 299872& 42115.3
Chemical 115.34 0.00 4
Co. Ltd.Ningbo
Zhongjin 59902011 599020
Petrochemi 40.04 1140.04
cal Co.
269 / 276 Full Text of 2024 Annual Report
Ltd.Zhejiang
Shengyuan
Chemical 2030140000.00
203014
Fiber Co. 0000.00
Ltd.Dalian
Yisheng 14682044 146820
Investment 57.48 4457.48
Co. Ltd.Rongsheng
New
Materials 10000000 750000000. 17500000.00 00 0000.00
(Zhoushan)
Co. Ltd.Rongsheng
New
Materials 90000000 900000
(Taizhou) 0.00 000.00
Co. Ltd.Rongsheng
Petrochemi
cal 62088956 620889
(Singapore) 0.00 560.00
Pte. Ltd.Zhejiang
Yongsheng 19830653 602000000. 800306
Technolog 7.70 00 537.70
y Co. Ltd.Hong Kong
Sheng Hui 141419910.00
141419
910.00 Limited
Rongsheng
Internation 10000000 100000
al Trading 0.00 000.00
Co. Ltd.Rongsheng
Chemical 40000000. 10000000.0 500000
(Shanghai) 00 0 00.00
Co. Ltd.Rongxiang
Chemical 3000000.0 300000
Fiber Co. 0 0.00
Ltd.Hainan
Rongsheng
Internation 1000000.0 100000
al Trade 0 0.00
Co. Ltd.Rongsheng
Petrochemi
cal (Hong 699087.91 699087.Kong) Co. 91
Ltd.Subtotal 40951102 289200000
438431
808.470.0002808.47
270 / 276 Full Text of 2024 Annual Report
(2) Investments in associates and joint ventures
Unit: RMB
Increase and decrease in the current period
Openi Openi
ng Investme Other
Declar
ng ed Closing Closing
balanc balanc comp balanc balancInve Invest nt gains Other distribInvest e e of e e of stme ments or losses
rehen equit ution Provis
ees (carry (carry provisprovis nts decre recognize
sive y of ion for
ing incom impair
Other ing ion for
ion for
amou incre d under chang cash amou impairased e ment
nt) impair ased the equity adjust es divide
nt) ment
ment method ments nds or profits
I. Joint ventures
II. Associate
Zhejia
ng
Yishen
g 148379841 3448428
-1518
Petroc 0.93 2254 05728
hemica 8.85 18.24 1.54
l Co.Ltd.Ningb
o
Hengy 16756 - -
i 3505. 8145085 8239
77873
401.2
Tradin 10 3.13 250.7 6
g Co. 1
Ltd.Zhejia
ng
Xiaosh
an
Rural 2265 1465 13228 2690
Comm 59866
2910678
02.786282639.600065
ercial 8.75 3.92 0 5.85
Bank
Co.Ltd.Subtot 3916 1380 13228 4285
al 96059
2441012
30.589815639.6931332.704.9708.65
39161380132284285
Total 96059 2441012 9815 639.6 93133
2.7030.584.9708.65
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□ Applicable □ Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable □ Not applicable
Reasons for the difference between the above information and the information used in impairment test or external
information in the previous years
271 / 276 Full Text of 2024 Annual Report
4. Operating revenue and operating cost
Unit: RMB
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
Main operations 2363829411.86 2333799484.08 3749052513.75 3674697564.89
Other operations 80517987.35 35829527.43 52411684.97 48284096.24
Total 2444347399.21 2369629011.51 3801464198.72 3722981661.13
Breakdown information of operating revenue and operating cost:
1) Breakdown of revenue from contracts with customers by goods or services
Amount in the current period Amount in the previous period
Items
Revenue Cost Revenue Cost
Polyester chemical fiber film 2363829411.86 2333799484.08 3749052513.75 3674697564.89
Trade and others 78470936.15 35558081.43 51127281.30 48012650.24
Subtotal 2442300348.01 2369357565.51 3800179795.05 3722710215.13
2) Breakdown of revenue from contracts with customers by time of transferring goods or rendering services
Items Current period cumulative Preceding period comparative
Recognized at a point in time 2442300348.01 3800179795.05
Subtotal 2442300348.01 3800179795.05
3) Information related to performance obligations
Time of Nature of goods or Whether
fulfilling Significant services that the the
Amount Type of
Items performance payment terms Company has Company
expected to be
returned to the warranties and
obligations promised to is a transfer principal customer
related obligations
Prepayments; the
Sale payment period of
of Upon delivery accounts receivable
Products in line Warranty-type
Goods of goods is generally 30 to
with national Yes No
90 days after standards
quality guarantee
product delivery.
4) Contract liabilities with opening balance of RMB 132034985.73 were carried over to revenue in the current
period.
5. Investment income
Unit: RMB
Items Current period cumulative Preceding period comparative
Investment income from long-term equity 2550000000.00 930000000.00
investments under equity method
Investment income from long-term equity 244101230.58 213559806.48
investments under cost method
272 / 276 Full Text of 2024 Annual Report
Investment income from disposal of long- 136583.66
term equity investments
Losses on discounting of receivables -88514.74 -69752714.18
financing
Interest income from call loans between 33787302.90 15535855.12
related parties
Total 2827800018.74 1089479531.08
XIX. Supplementary information
1. Breakdown of non-recurring gains and losses in the current period
□Applicable □ Not applicable
Unit: RMB
Items Amount Remarks
Gains on disposal of non-current assets including write-off of 28037854.60
provision for impairment
Government grants included in profit or loss (excluding those
closely related to operating activities of the Company
satisfying government policies and regulations enjoyed based 42372438.06
on certain standards and continuously affecting gains or losses
of the Company)
Gains on changes in fair value of financial assets and financial
liabilities held by non-financial enterprises and gains from
disposal of financial assets and financial liabilities excluding 51474393.47
those arising from hedging business related to operating
activities
Fund possession charge from non-financial entities and 392911.94
included in profit or loss
Other non-operating revenue or expenditures -98193645.95
Other profit or loss satisfying the definition of non-recurring 35269367.80
profit or loss
Less: Enterprise income tax affected 45497452.62
Non-controlling interest affected (after tax) 51525226.38
Total -37669359.08 --
Situation of other profit/loss items falling within the definition of non-recurring gain or loss:
□ Applicable □ Not applicable
The Company has no other profit/loss items falling within the definition of non-recurring gain or loss
Statement of defining non-recurring profit and loss items listed in the Explanatory Announcement No.1 on
Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profits and Losses as
recurring profits and losses
□ Applicable □ Not applicable
273 / 276 Full Text of 2024 Annual Report
2. ROE and EPS
EPS
Profit of the reporting period Weighted average ROE (%) Basic EPS (RMB per share) Diluted EPS (RMB per share)
Net profit attributable to
shareholders of ordinary shares 1.65% 0.08 0.08
Net profit attributable to
shareholders of ordinary shares
after deducting non-recurring 1.74% 0.08 0.08
profit or loss
3. Differences in Accounting Data under Domestic and Foreign Accounting Standards
(1) Differences in net profits and net assets in financial reports disclosed in accordance with international
accounting standards and China accounting standards
□ Applicable □ Not applicable
(2) Differences in net profits and net assets in financial reports disclosed in accordance with foreign
accounting standards and China accounting standards
□ Applicable □ Not applicable
4. Others
1. Calculation process of weighted average ROE
Items Symbols Current period cumulative
Net profit attributable to shareholders of ordinary shares A 724484686.45
Non-recurring profit or loss B -37669359.08
Net profit attributable to shareholders of ordinary shares after
deducting non-recurring profit or loss C=A-B 762154045.53
Opening balance of net assets attributable to shareholders of ordinary
shares D 44335891085.79
Newly added net assets attributable to ordinary shareholders of the
Company resulting from new shares issued or debt-to-equity swap E
Number of months from the following month of increased net assets
to the end of the reporting period F
Net assets attributable to shareholders of ordinary shares decreased
due to share repurchase or cash dividends appropriation G1 957314454.20
Number of months counting from the next month when the net assets
were decreased to the end of the reporting period H1 7
Net assets attributable to shareholders of ordinary shares decreased
due to share repurchase or cash dividends appropriation G2 356717606.78
Number of months counting from the next month when the net assets
were decreased to the end of the reporting period H2 11
274 / 276 Full Text of 2024 Annual Report
Net assets attributable to shareholders of ordinary shares decreased
due to share repurchase or cash dividends appropriation G3 3183466.00
Number of months counting from the next month when the net assets
were decreased to the end of the reporting period H3 10
Net assets attributable to shareholders of ordinary shares decreased
due to share repurchase or cash dividends appropriation G4 7490988.00
Number of months counting from the next month when the net assets
were decreased to the end of the reporting period H4 3
Translation reserve G5 51071825.30
Number of months counting from the next month
when the net assets were increased or decreased to H5 6
the end of the reporting period
Changes in other equity under the equity method I1 114451543.25
Number of months counting from the next month
when the net assets were increased or decreased to J1 6
the end of the reporting period
Other
Effect of share repurchase using OTC derivatives I2 -400228.68
Number of months counting from the next month
when the net assets were increased or decreased to J2 11/10/9
the end of the reporting period
Unuse of work safety fund I3 -41620109.48
Number of months counting from the next month
when the net assets were decreased to the end of the J3 6
reporting period
Number of months of the reporting period K 12
Weighted average net assets L= D+A/2+E×F/K-G×H/K±I×J/K 43869899714.48
Weighted average ROE M=A/L 1.65%
Weighted average ROE after deducting non-recurring gain and loss N=C/L 1.74%
2. Calculation process of basic EPS and diluted EPS
(1) Calculation process of basic EPS
Items Symbols Current period cumulative
Net profit attributable to shareholders of ordinary shares A 724484686.45
Non-recurring profit or loss B -37669359.08
Net profit attributable to shareholders of ordinary shares after
deducting non-recurring profit or loss C=A-B 762154045.53
Opening balance of total shares D 9609091878.00
Number of shares increased due to conversion of reserve to share
capital or share dividend appropriation E
Number of shares increased due to offering of new shares or
conversion of debts into shares F
Number of months counting from the next month when the shares
were increased to the end of the reporting period G
275 / 276 Full Text of 2024 Annual Report
Number of shares decreased due to share repurchase H1 35635036.00
Number of months counting from the next month when the shares
were decreased to the end of the reporting period I1 11
Number of shares decreased due to share repurchase H2 312300.00
Number of months counting from the next month when the shares
were decreased to the end of the reporting period I2 10
Number of shares decreased due to share repurchase H3 852400.00
Number of months counting from the next month when the shares
were decreased to the end of the reporting period I3 3
Number of shares decreased in the reporting period J
Number of months in the reporting period K 12
Weighted average of outstanding ordinary shares L=D+E+F×G/K-H×I/K-J 9575953078.33
Basic EPS M=A/L 0.08
Basic EPS after deducting non-recurring profit or loss N=C/L 0.08
(2) Calculation process of diluted EPS
Calculation process of diluted EPS is the same as that of basic EPS.Rongsheng Petrochemical Co. Ltd.Chairman: Li Shuirong
April 24 2025
沪公网安备31011802005267号
