Full content of 2024 Annual ReportFull content of 2025 Annual Report
A Letter to Investors
Dear Investors:
Strengthening the nation through industry to build new dreams; keeping our original
aspiration like a torch to embark on a new journey. Standing firm in the real economy and
moving towards prosperity we have tempered our resilience within industry cycles and stood at the
forefront of industrial transformation. On the occasion of the disclosure of the 2025 Annual Report
we carry our gratitude and commitment in this letter to express our most sincere thanks to global
investors for your long-term trust and support! In 2025 amidst the surging industrial waves and
accelerating evolution of industry changes we have walked hand in hand with all shareholders
forging foundations with perseverance breaking new ground through innovation and creating value
through hard work marching towards the light on the path of high-quality development.Enhancing the foundation to improve quality and efficiency; expanding new horizons
through chain synergy. In 2025 the global macro-economic environment remained complex and
the petrochemical industry was in a period of bottom adjustment within the cycle. Relying on its
world-leading ultra-large integrated refining and chemical platform the Company stabilized
operations improved quality and efficiency and sought upgrades achieving high-quality and steady
development. On one hand the Company continuously strengthened market judgment and overall
production and operation coordination achieving a total operating revenue of RMB 308.6 billion and
total assets exceeding RMB 386.6 billion. On the other hand the Company focused deeply on its core
business fully releasing its core advantages of the entire industrial chain integration—delving into
internal potential for cost reduction and efficiency while optimizing external layouts to extend the
value chain. We have orderly advanced the tank farm and terminal engineering of the Jintang crude
oil storage and transportation base to enhance logistics and storage resilience; laid out the Zhoushan-
Ningbo petrochemical base interconnection pipeline project to achieve efficient synergy among the
three major bases; implemented the ZPC refining and chemical integration transformation and
enhancement project to strengthen the flexible adjustment capability of chemical and petroleum
products; constructed chain-optimization and extension projects such as high-performance resins andFull content of 2025 Annual Report
high-end new materials accelerating the upgrade of the product structure toward high-end and
differentiated fields. The 40 mtpa refining and chemical integration project primarily operated by the
Company remains the largest single-entity project in the world; the production capacities of core
products such as PX and PTA rank among the top globally. We have built a complete industrial
ecosystem from "a drop of oil to everything in the world" forming multiple barriers in scale cost
and industrial chain synergy. Meanwhile the Company garnered multiple heavy-weight industry
honors ranking 5th on the "Brand Finance Chemicals 25" list 7th in the "Chemical Company Billion
Dollar Club" and 9th among the "Global Top 100 Chemical Companies" with our global industrial
influence and brand status continuing to rise.Connecting the globe for strategic layout; gathering strength for win-win results. Current
global energy patterns are restructuring rapidly meanwhile industrial and supply chains are deeply
integrated. The Company actively promotes its "Five Globalization paths" strategy drafting a long-
term development blueprint with an international vision. From Hangzhou Bay to the Arabian Gulf
and from the Yangtze River Economic Belt to the new RCEP corridor the Company is accelerating
the construction of a vertically and horizontally linked collaborative and efficient global industrial
network. Through strategic equity participation and mutual investment projects the deep cooperation
between the Company and Saudi Aramco has become an industry model of mutual benefit in the
multinational energy and chemical field. We have also built a supply chain security barrier through a
globalized and diversified procurement system to ensure the stable operation of the industrial chain.Furthermore with green petrochemistry as the foundation the Company is fully forging a new growth
engine and continuously refining its global marketing system. Using Singapore and Hong Kong as
core hubs we have steadily extended our sales network to emerging markets such as Europe and
Africa building an internally and externally connected trade pattern that radiates globally
significantly enhancing cross-border trade operational efficiency and profitability. In 2025 the
Company's overseas operating revenue accounted for 16.84% demonstrating strong momentum in
international development. Looking ahead the Company will continue to lead high-quality
development with global thinking accelerate the construction of a global R&D layout implement a
global talent recruitment strategy and deepen diversified cross-border financial cooperation to
continuously empower the improvement and upgrade of local manufacturing bridging industrialFull content of 2025 Annual Report
cooperation between China and the rest of the world.Innovation as wings for a longer flight; technology empowerment leading the trend. 2025
marks the concluding year of the "14th Five-Year Plan" and a crucial year for the layout of the "15th
Five-Year Plan." The Company has always upheld the innovation-driven development strategy and
continuously increased R&D investment with cumulative R&D funding exceeding RMB 20 billion
over the past five years. We were successfully selected for the "2025 EU Industrial R&D Investment
Scoreboard" among the top 2000 global industrial R&D investors. The Company actively deploys
high-value-added new materials advanced processes and green low-carbon technologies solidifying
the talent foundation and technical support for digital and intelligent transformation; we have
continuously achieved new breakthroughs in key core technologies in the high-end and fine chemical
tracks. The ZPC Research Institute was rated as a "Key Enterprise Research Institute for
Petrochemical New Materials in Zhejiang Province" providing core technical support for industrial
chain extension and value chain enhancement. Optical-grade PMMA products were selected for the
Guiding Catalogue for the First Batch Application Demonstration of Key New Materials in Zhejiang
Province (2025 Edition) due to their excellent performance injecting Rongsheng's power into solving
"bottleneck" technical problems in related fields.The Company's digital transformation leads the industry. Three digitalization cases from ZPC
were selected as "Excellent Digital Transformation Cases in the Petroleum and Chemical Industry
during the 14th Five-Year Plan" covering the three core scenarios of safety equipment and
operation providing a replicable "ZPC Solution" for the industry. The ZPC high-end new materials
intelligent factory was rated as a "2025 Zhejiang Provincial Advanced Intelligent Factory" and the
Shengyuan Chemical Fiber intelligent factory for new polyester fibers and differentiated fibers was
selected as a "2025 Zhejiang Provincial Intelligent Factory" building a full-process intelligent
manufacturing closed loop from upstream refining to downstream chemical fiber manufacturing.Facing the era's wave of building a modern industrial system and developing new quality
productive forces the Company recognizes that Industrial AI is a transformative force for reshaping
the modern industrial system and has deeply integrated it into the core aspects of Rongsheng
Petrochemical's production and operations. We have constructed a new industrial intelligence
system centered on "intelligent instrumentation + predictive maintenance + data governance"Full content of 2025 Annual Report
following a fusion path of "AI + Mechanism" to help technology truly land in key production
scenarios and achieve substantial breakthroughs. With leading digital management the Company
was successfully selected as a "Manufacturing Quality Benchmark in Zhejiang Province."
Practicing the "Dual Carbon" mission; demonstrating leadership as an industry giant. The
Company has always integrated green and low-carbon concepts into the entire process of production
and operation deeply implementing the national "Dual Carbon" strategy. In 2025 breakthroughs in
green process technology R&D continued. The "Integrated Technology for Energy Saving and
Emission Reduction in PTA Production Process" passed scientific and technological appraisal
reaching an international advanced level and being successfully applied to achieve near-zero
wastewater discharge and resource utilization. The "New High-Efficiency Carbon Dioxide
Hydrogenation to Methanol Catalyst Project" was successfully shortlisted for the Ministry of Industry
and Information Technology's 2025 " Open bidding for selecting the best candidates for key
technology breakthroughs". The "Petrochemical Product Carbon Footprint Evaluation Technology"
successfully passed achievement evaluations and its calculation tools have been applied to more than
ten types of products helping the industry cope with international green trade barriers. Hainan
Yisheng was successfully selected as a National-level Green Factory setting a model for green
production in the industry. All of the above are significant evidence for the Company’s results in green
production practices.The Company actively lays out clean energy construction to practice its carbon reduction
strategy. ZPC introduced offshore wind power effectively reducing Scope 2 greenhouse gas
emissions. ZJPC carried out green electricity trading to promote the consumption of new energy. The
distributed photovoltaic power generation project of Shengyuan Chemical Fiber achieved full-
capacity grid connection practicing the concept of low-carbon development through the "PV +
Industry" model. The Company's ESG governance level has continued to improve gaining wide
recognition. In 2025 Rongsheng Petrochemical's MSCI ESG rating was successfully upgraded to
Grade A placing us at the forefront of the global petrochemical industry; meanwhile we were
awarded the "Best ESG Management Listed Company of 2024" fully demonstrating the capital
market's high recognition of the Company's environmental social and governance work.Full content of 2025 Annual Report
Investor-oriented; casting trust with sincerity. Since its listing the Company has always
adhered to the core principle of "Shareholder Interests First" and remained true to its mission of
rewarding shareholders. Over the past sixteen years the Company has maintained a stable cash
dividend policy without interruption conveying development confidence through "tangible returns"
and fulfilling its commitments through practical actions to share development results with
shareholders. From 2022 to 2024 the Company implemented three phases of share buyback plans
cumulatively repurchasing 553 million shares with an amount totaling RMB 6.988 billion (excluding
transaction fees). In July 2025 the Company completed the cancellation of 136 million shares from
the first phase of repurchases accounting for 1.3440% of the total share capital before cancellation
and correspondingly reduced the registered capital. From 2024 to 2025 the controlling shareholder
Rongsheng Holding launched three phases of shareholding increase plans cumulatively increasing
its holdings by 289 million shares with a total amount of RMB 2.705 billion demonstrating firm
confidence in the Company's long-term value and future development.Forging ahead to chase the waves; acting with pragmatism toward the future. Currently the
global petrochemical industrial pattern is undergoing systematic reconstruction and China's
petrochemical industry is accelerating its leap toward high-end intelligent green and international
development. Looking ahead the Company will unswervingly follow the path of high-quality
development: using synergy as wings to deepen the integration of industry academia and research;
using digital intelligence as the engine to empower operational improvement; using green
development as the foundation to improve the ESG governance system; using globalization as the
layout to optimize resource allocation; and using value as the essence to reward shareholders through
steady operation. The journey is long but our original aspiration remains as firm as a rock. We walk
steadily because of your trust and go far because of our shared vision. The Company will strive
forward with practical actions and an enterprising spirit constantly forging ahead on the new journey
to create excellent value for shareholders society and the era!
Board of Directors of Rongsheng Petrochemical Co. Ltd.April 2026Full content of 2025 Annual Report
2025 Annual Report
Section I Important Notice Table of Contents and Definitions
The Board of Directors the Directors 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.Mr. Li Shuirong Principal of the Company Ms. Wang Yafang Person in
Charge of Accounting Work and Ms. Zhang Shaoying Person in Charge of the
Accounting Department (Accounting Officer) hereby declare that they warrant
the truthfulness accuracy and completeness of the financial report in this annual
report.All Directors have attended the Board meeting to deliberate on the report.The profit distribution proposal approved by the Board of Directors is as
follows: Based on 9572292142 shares the Company will distribute a cash
dividend of RMB 1 (tax inclusive) for every 10 shares to all shareholders and 0
bonus shares (tax inclusive) will be granted. No share capital will be increased
from the capital reserve.In case of any discrepancy between this version and Chinese version the
Chinese version shall prevail.
1 / 276Full content of 2025 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 Environment and So.. 65
Section V Important Matters ........................ 92
Section VI Changes in Shares and Shareholders ..... 125
Section VII Bonds ................................. 135
Section XIII Financial Reports .................... 136
2 / 276Full content of 2025 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 accounting work and the person in charge of the Accounting Department (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 and Senior Management of the Company on the 2025 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 / 276Full content of 2025 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's controlling shareholder
Saudi Aramco Refers to Saudi Arabian Oil Company a shareholder holding over 5% of the Company's shares.ZPC Refers to Zhejiang Petroleum & Chemical Co. Ltd. a subsidiary of the Company
Zhongjin Petrochemical
ZJPC 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 Shenghui Refers to Hong Kong Shenghui Co. Ltd. a subsidiary of the Company
Rongsheng (Singapore) Refers to Rongsheng Petrochemical (Singapore) Pte. Ltd. a subsidiary of the Company
Yongsheng Technology Refers to Zhejiang Yongsheng Technology Co. Ltd. a subsidiary of the Company
Rongsheng New Materials
(Zhoushan) Refers to Rongsheng (Zhoushan) New Materials Co. Ltd. a subsidiary of the Company
Zhejiang Yisheng Refers to Zhejiang Yisheng Petrochemical Co. Ltd. a joint stock subsidiary of the Company
Hengyi Trading Refers to Ningbo Hengyi Trading Co. Ltd. a joint stock subsidiary of the Company
ZPC (Singapore) Refers to ZPC (Singapore) Pte. Ltd. a subsidiary of ZPC
Jintang Logistics Refers to Zhejiang Petrochemical Jintang Logistics Co. Ltd. a subsidiary of ZPC
Dingsheng Petrochemical Refers to Zhejiang Dingsheng Petrochemical Engineering Co. Ltd. an equity-invested subsidiary of ZPC.Derong Chemicals Refers to Zhejiang Derong Chemicals Co. Ltd. a joint stock subsidiary of ZPC
Yisheng New Materials Refers to Zhejiang Yisheng New Materials Co. Ltd. a controlled subsidiary of Zhongjin Petrochemical
Niluoshan New Energy Refers to Ningbo Niluoshan New Energy Co. Ltd. a subsidiary of Zhongjin Petrochemical
Yisheng Dahua Refers to Yisheng Dahua Petrochemical Co. Ltd. a subsidiary of Yisheng Investment
Hainan Yisheng Refers to Hainan Yisheng Petrochemical Co. Ltd. a joint stock subsidiary of Yisheng Investment
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 RMB 10000.00
Reporting period Refers to January 1 2025 to December 31 2025
4 / 276Full content of 2025 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 荣盛石化股份有限公司
Company abbreviation in Chinese 荣盛石化
Company name in the foreign
language (if any) RONGSHENG PETROCHEMICAL CO. LTD.Company abbreviation in foreign
language (if any) RSPC
Company’s legal representative 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
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
Telephone 0571-82520189 0571-82520189
Fax 0571-82527208 extension 8150 0571-82527208 extension 8150
E-mail qwy@rong-sheng.com yangyang@rong-sheng.com
III. Information Disclosure and Archiving Place
Website of the stock exchange where the Company Shenzhen Stock Exchange (http://www.szse.cn)
5 / 276Full content of 2025 Annual Report
discloses the annual report
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 Xu Haihong Xu Cheng
The sponsor institution engaged by the Company to perform the continuous supervision responsibility during the
reporting period
□ Applicable R Not applicable
The financial advisor engaged by the Company to perform the continuous supervision responsibility during the
reporting period
□ Applicable R 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 R No
Increase or decrease of
Item 2025 2024 this year compared 2023
with the previous year
Operating income (RMB) 308622318229.03 326475162608.88 -5.47% 325111614268.09
Net profit attributable to
shareholders of the listed 848314274.77 724484686.45 17.09% 1158146248.89
company (RMB)
Net profit attributable to
shareholders of the listed
company net of non- 903729743.43 762154045.53 18.58% 820092947.36
recurring profit or loss
(RMB)
Net cash flow from
operating activities 45406467418.61 34609126604.88 31.00% 28079221508.73
(RMB)
6 / 276Full content of 2025 Annual Report
Basic earnings per share
(RMB per share) 0.09 0.08 12.50% 0.12
Diluted earnings per share
(RMB per share) 0.09 0.08 12.50% 0.12
Weighted average return
on net assets 1.95% 1.65% 0.30% 0.02%
Increase or decrease at
Item At the end of 2025 At the end of 2024 the end of this year compared with the end At the end of 2023
of the previous year
Total assets (RMB) 386633124294.10 377845944183.98 2.33% 374918440311.68
Net assets attributable to
shareholders of the listed 43593522953.92 43859172287.65 -0.61% 44335891085.79
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 there is uncertainty regarding the
Company’s ability to continue as a going concern.□ Yes R No
The lower of the audited total profit net profit and net profit after deducting non-recurring profit or loss of the
Company during the reporting period is negative
□ Yes R 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 R 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 R 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 74975429161.64 73653921773.86 79185280480.27 80807686813.26
Net profit attributable to shareholders
of the listed company 588401349.75 13682754.64 286367804.90 -40137634.52
Net profit attributable to shareholders 618349603.39 136608288.19 314303932.86 -165532081.01
of the listed company net of non-
7 / 276Full content of 2025 Annual Report
recurring profit or loss
Net cash flow from operating
activities 7977336348.96 -390711095.28 16060259737.63 21759582427.30
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 R No
IX. Items and Amounts of Non-recurring Profit or Loss
RApplicable □ Not applicable
Unit: RMB
Item Amount in 2025 Amount in 2024 Amount in 2023
Gains or losses on disposal of non-current assets
(including the write-off part of the provision for asset 28471452.77 28037854.60 34130889.49
impairment)
Government grants included in the current profits and
losses (excluding those closely related to the
Company's normal business operations granted in
accordance with national policies based on certain 92428828.18 42372438.06 60299389.39
standards and having a continuous impact on the
Company’s profits and losses)
Gains and losses arising from changes in the fair value
of financial assets and financial liabilities held by non-
financial enterprises and the gains and losses arising
from disposal of financial assets and financial 75893353.74 51474393.47 483856260.59
liabilities excluding those arising from hedging
business related to the Company’s normal business
operations
Fund possession cost charged to non-financial 332320.74 392911.94 248144.66
enterprises included in current profit or loss
Other non-operating revenues and expenditures except -21423859.85 -98193645.95 -7549562.66
for the aforementioned items
Other profit/loss items falling within the definition of -4766358.11 35269367.80 14297547.73
non-recurring gain or loss
Less: Affected amount of income tax 72782393.34 45497452.62 37178195.47
Affected amount of minority shareholders' equity 153568812.79 51525226.38 210051172.20
(after tax)
Total -55415468.66 -37669359.08 338053301.53
Other gain/loss items falling within the definition of non-recurring gain or loss:
□ Applicable R 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 profit or 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 R Not applicable
The Company does not define any of the non-recurring profit or 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 / 276Full content of 2025 Annual Report
Section III Management Discussion and Analysis
I. Main Businesses of the Company during the Reporting Period
The company must comply with the disclosure requirements for the chemical industry as outlined in the Shenzhen
Stock Exchange Guidelines for Self-Regulatory Supervision of Listed Companies No. 3 – Industry Information
Disclosure.Procurement mode of main raw materials
Unit: RMB
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 Purchase by inquiry 58.86% No 3812.00 3499.54
Naphtha Purchase by inquiry 2.49% No 4689.57 4283.46
Fuel oil Purchase by inquiry 3.39% No 3498.44 2771.80
PX Purchase by inquiry 5.28% No 6029.20 5728.21
Reasons for Significant Changes in Raw Material Prices Compared to the Previous Reporting Period
Energy purchase prices accounting for more than 30% of total production costs
□ Applicable R Not applicable
Reasons for Major Changes in Primary Energy Types
9 / 276Full content of 2025 Annual Report
Production technology of main products
Development
Main stage of Core Proprietary
products production technical personnel technology
Product R&D advantages
technique
Ethylene Technology Several core Introduction Utilizing advanced overseas steam cracking processes to crack feedstocks in high-temperature furnace tubes into low-technical and molecular-weight hydrocarbon mixtures (cracked gas). The gas is then processed through quenching compression caustic Propylene application personnel innovation washing drying hydrogenation cold/heat separation and methanation to produce polymer-grade ethylene and propylene.Technology Several core Introduction Utilizing advanced overseas low-pressure gas-phase polymerization processes to produce high medium and linear low-
FDPE technical and density polyethylene (LLDPE) products. Ethylene is the primary raw material with Butene-1 or Hexene-1 as co-monomers application personnel innovation to produce LLDPE and partial MDPE/HDPE resin granules.Technology Several core Introduction Utilizing advanced slurry loop polymerization processes with two loop reactors operating in series to produce
HDPE technical and bimodal/unimodal polyethylene. Reactions occur under moderate temperature and pressure with mild conditions; application personnel innovation proprietary concentration equipment improves slurry concentration and reduces solvent recovery unit load.Technology Several core Introduction
EVA/LDPE application technical and
Utilizing advanced tubular reactor technology to switch between producing various grades of LDPE homopolymer resin
granules and EVA copolymer resin granules with VA content $\leq$ 28% on a single production line.personnel innovation
Technology Several core Introduction Developed Spherizone technology based on the Spheripol process. Utilizing Multi-Zone Circulating Reactor (MZCR)
PP technical and technology a single reactor is divided into two reaction zones with independently controlled conditions allowing polymer application personnel innovation particles to circulate rapidly to achieve "onion-like" uniform mixing.Several core Introduction 1) DPC Unit: Utilizing advanced overseas transesterification patents to produce high-quality DPC suitable for high-quality
PC Technology technical and PC production; 2) Polymerization Unit: Utilizing advanced overseas non-phosgene transesterification and melt application polycondensation patents. Features lower environmental emissions higher yield lower monomer residue and large single-personnel innovation line capacity compared to phosgene methods.Technology Several core Introduction BPA technical and Utilizing ion-exchange resin technology with phenol and acetone as raw materials to produce Bisphenol A through catalytic application condensation in an acidic medium. personnel innovation
Technology Several core Introduction Adsorption separation utilizes advanced overseas simulated moving bed (SMB) technology. The 2# xylene fractionation PX application technical and unit utilizes fractionation processes compatible with Parex and isomerization units to cut feedstocks; the isomerization unit personnel innovation utilizes advanced overseas catalysts to increase xylene yield from PX-lean mixed C8 aromatics.Technology Several core Introduction Extraction distillation utilizes advanced overseas sulfolane processes to produce extract oil (mixed aromatics) and raffinate. Benzene application technical and The disproportionation unit utilizes advanced catalysts to produce xylene and benzene from toluene and C9/C10A. The personnel innovation B/T fractionation unit separates benzene and toluene products via precision distillation.
10 / 276Full content of 2025 Annual Report
Technology Several core Introduction Utilizing leading proprietary technology to produce ABS resin via emulsion grafting-bulk SAN blending with AN BD
ABS technical and and SM as primary raw materials. The process is mature ensuring stable quality flexible production and easy product application personnel innovation switching with low investment and production costs.Polyether Technology Several core Introduction Utilizing advanced anionic catalytic synthesis Double Metal Cyanide (DMC) catalytic synthesis and POP technologies. technical and Products include polyoxypropylene polyols (copolymerized from glycerol/organic amines with PO/EO) and polymer polyol application personnel innovation polyols (graft-polymerized from AN/SM with polyols).Solution
polymerized
styrene-
butadiene Technology Several core Introduction Both utilize advanced overseas patents. SSBR (Solution Styrene Butadiene Rubber) is produced via solution rubber (SSBR) application technical and
polymerization of BD and SM in a hexane/cyclohexane solvent with NBL catalyst. NDBR (Neodymium Butadiene
and rare earth personnel innovation Rubber) is produced via BD solution polymerization in hexane with NdV ACT and AOC catalysts.cis-
polybutadiene
rubber (NDBR)
Technology Several core Introduction
Acrylonitrile technical and Utilizing propylene ammoxidation technology. Propylene and ammonia react and undergo quenching absorption application extractive distillation and rectification to finally obtain high-purity acrylonitrile products. personnel innovation
Ethylene Technology Several core Introduction Utilizing advanced direct ethylene-to-EO oxidation and EO hydration-to-EG processes. Composed of EO reaction CO2 technical and removal EO recovery light component removal EO refining EG reaction/evaporation and EG refining systems. Features Glycol (EG) application personnel innovation low reaction temperature and reduced energy consumption/investment.Phenol Technology Several core Introduction Utilizing advanced overseas cumene oxidation technology. Benzene and propylene react into cumene which is oxidized technical and into CHP concentrated and decomposed under acidic conditions into phenol and acetone. Process sections include: Acetone application personnel innovation oxidation concentration decomposition neutralization fractionation hydrogenation and phenol recovery.Several core Introduction
Vinyl Acetate Technology application technical and
Utilizing advanced technology with catalysts (Silica carrier Pd/Au/KAc active components). Vinyl acetate is generated
through the adsorption-oxidation-reduction-dissociation process of gaseous ethylene oxygen and acetic acid.personnel innovation
Technology Several core Introduction Utilizing advanced technology with CO and methanol as raw materials and Ir/Ru as catalysts to synthesize acetic acid Acetic acid technical and under heat and pressure. Crude acetic acid undergoes primary processing dehydration and drying for purification into application personnel innovation final products.Technology Several core Introduction Styrene technical and The Ethylbenzene Unit utilizes advanced overseas liquid-phase alkylation of benzene; the Styrene Unit performs catalytic application dehydrogenation of ethylbenzene in the presence of steam to produce styrene products. personnel innovation
11 / 276Full content of 2025 Annual Report
Technology Several core Introduction Utilizing advanced technology with polymer-grade ethylene hydrogen 1-octene and 1-butene as raw materials. Employs
POE application technical and metallocene catalysts (transition metal atoms with cyclopentadienyl rings) hexane as solvent and various solid personnel innovation additives/antioxidants in the extrusion pelletizing section.Technology Utilizing advanced aqueous salt-forming processes without organic solvents (methanol/ethanol). Features high automation
Nylon 66 application safety and short process flow. Employs tower reactors instead of traditional tubular ones reducing equipment investment (fewer pre-polymerizers/pumps) ensuring stable control less HMD loss and ultra-low water content in products.Core tech possesses independent IP; the Company participated in setting national standards for product energy
consumption limits. Large-scale units significantly reduce unit investment. Key innovations include: pressure filters in
oxidation (replacing vacuum filters/dryers) and refining units (reducing stages) significantly improving reliability and
Leading Several core Introduction stability. New materials like duplex steel replace some titanium alloys/317L to reduce costs. Consumption Optimization:
PTA position in technical and Extensive work in oxidation optimization catalyst ratios and recovery systems (methyl acetate/solids) has significantly lowered material consumption. Energy Recovery: Exothermic oxidation heat generates low-pressure steam for
China personnel innovation compressors and other users (e.g. dehydration towers). Hydrogenation reaction heat flashes steam to heat feed to ~260°C.High-pressure oxidation off-gas drives compressors and serves as transport/inert gas. Integrated heat exchange minimizes
external steam needs to only small amounts of high-pressure steam for heating feed from 260°C to 286°C. Comprehensive
energy consumption is superior to advanced national standards.Large-scale Several core Introduction
Achieving maximum output highest conversion rate and lowest energy consumption. By tapping into equipment potential
Polyester technical and the project aims to increase production and efficiency without increasing energy consumption improve energy utilization application personnel innovation and reduce production costs. It eliminates filter clogging and labor waste while saving bagging costs bringing considerable economic benefits to the Company.Multi-
functional Leading Several core Introduction The core technology combines international advanced high-temperature crystallization pelletizing with the solid-state
polyester bottle position in technical and polycondensation (SSP) process. It features a short process flow and low energy consumption with comprehensive energy
grade chip China personnel innovation consumption per unit of product reaching a domestically leading level.By independently designing and installing multiple adding points online adding equipment for various materials dynamic
Large-scale Several core Introduction
and static mixing equipment finish nozzles and winders on the melt direct spinning line the Company has upgraded
Spinning technical and existing equipment. This targets efficiency from differentiated and high-end melt direct spinning products achieving application personnel innovation transformation and upgrading. It resolves the contradiction between large-capacity polyester units and the production of small-batch multi-variety functional differentiated fibers. Main products include flame-retardant anti-static colored and
full-pulp functional modified fibers.Mass Several core Introduction This technology was independently developed by the Company for processing DTY in multiple colors such as military Draw Texturing production technical and green and black. It features uniform color requires no dyeing after weaving and is resistant to fading during daily use. It personnel innovation is primarily used for weaving fabrics with special purposes.Multifunctional Mass Several core Introduction The Company possesses both melt-to-film (direct) and chip-to-film production lines. The direct method simplifies the
Polyester Film production technical and process lowers production costs and ensures stable quality by sending polyester melt directly to the film production line. personnel innovation The chip method allows for the addition of various functional materials according to product needs offering production
12 / 276Full content of 2025 Annual Report
flexibility and high added value. Differentiated products such as backsheet film matte film heat-seal film anti-UV film
and release/protective film are widely used in photovoltaic backsheets window films sunshades high-end packaging and
optical fields.Film-grade Mass Several core Introduction Utilizing advanced polymerization processes equipped with unique additive dispersion and online adding technology the
Chips production technical and Company ensures stable performance and uniform distribution of various functional additives. This results in products personnel innovation with high strength and excellent appearance widely utilized on high-speed film production lines.Functional Several core Introduction Utilizing unique antiblock agent dispersion and online adding technology to achieve online copolymerization synthesis.Film Mass technical and Products include high-silica masterbatch and matte masterbatch which feature good opening performance excellent film-
Masterbatch production personnel innovation forming properties and superior melt performance and are widely used in the production of various functional polyester films.Antimony-free Production in Several core Introduction
Utilizing new environmentally friendly and highly efficient titanium-based catalysts to replace traditional catalysts.technical and Through online adding and process optimization the produced antimony-free chips effectively prevent antimony Polyester Chips batch personnel innovation precipitation improving the environmental added value of the product. Additionally the price advantage of titanium catalysts helps achieve cost reduction and efficiency enhancement.
13 / 276Full content of 2025 Annual Report
Production capacity of main products
Current Capacity under
design construction/pl
capacity Capacity Main products anning utilization Investment and construction
(10000(10000
tons/year) tons/year)
Fuel 1366
Para-xylene (PX) 1040
M-xylene (MX) 20
Benzene (BZ) 330
Purified terephthalic acid (PTA) 2150
Purified isophthalic acid (PIA) 30
Bottle grade chip (PET) 530
Recycled bottle-grade chips (rPET) 5 9 Under Hainan Yisheng’s planning
Pre-oriented yarn (POY) 71 25
Fully drawn yarn (FDY) 79 25
Draw texturing yarn (DTY) 67 25
Bi-oriented polyester film (BOPET) 43
Ethylene (ETH) 420
Monoethylene glycol (MEG) 240
Full-density polyethylene (FDPE) 90
High-density polyethylene (HDPE) 65 Adjusted according
to market conditions
Low-density polyethylene (LDPE) 40
Vinyl acetate (VAC) 30
ZPC high performance resin
Ethylene-vinyl acetate copolymer 60 80 project and high-end new (EVA) materials project under
construction
α-Olefins 35 ZPC high-end new materials project under construction
POE (Polyolefin Elastomers) 40 ZPC high-end new materials project under construction
Ultra-High Molecular Weight 5 Jintang New Material project Polyethylene (UHMWPE) under construction
Propylene (PRO) 330
Polypropylene (PP) 180
Jintang new material project
Phenol (PH) 80 40 under construction
Jintang new material project
Acetone (ACT) 50 25 under construction
Polycarbonate (PC) 52 52 Jintang new material project
14 / 275Full content of 2025 Annual Report
under construction
Methyl methacrylate (MMA) 18
Polymethyl methacrylate (PMMA) 18 ZPC high performance resin project under construction
Propylene oxide (PO) 27 27 Jintang new material project under construction
Polyether glycol/Polyether polyol Jintang new material project
(PPG/POP) 38 48 under construction
ZPC high-end new material
Acrylonitrile (AN) 52 66 project under construction
Butadiene (BD) 70
Jintang new material project
Styrene monomer (SM) 240 60 under construction
Acrylonitrile butadiene styrene Jintang new material project
(ABS) 160 120 under construction
Low cis-polybutadiene rubber
(LCBR) 10
Solution styrene butadiene rubber
(SSBR) 6
Sulfur (S) 121
Methanol (MeOH) 40
Acetic acid (AcOH) 100
Adiponitrile (ADN) 25 ZPC high-end new material project under construction
Adipic acid (AA) 30 ZPC high-end new material project under construction
ZPC high-end new material
Hexanediamine (HMD) 28 project under construction
ZPC high-end new material
Nylon 66 Salt 50 project under construction
Jintang new material project
Polypropylene terephthalate (PTT) 40 under construction
Polyethylene terephthalate-14-
cyclohexanedimethyl terephthalate Jintang new material project 10
(PCT) under construction
Polyethylene glycol terephthalate-
14-cyclohexanedimethyl Jintang new material project 10
terephthalate (PCTG) under construction
Types of products in major chemical bases
Major chemical bases 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
15 / 275Full content of 2025 Annual Report
EIA approvals being applied for or newly obtained during the reporting period
RApplicable □ Not applicable
Project EIA approval
ZPC New Catalytic Cracking Pilot Project Zhoushan Environmental Protection Bureau Approval [2025] No. 3
ZPC High-end New Materials Project Zhoushan Environmental Protection Bureau Approval [2025] No. 4
Renovation and upgrade project of refining and chemical
integration project of ZPC Zhoushan Environmental Protection Bureau Approval [2026] No. 10
Isopentane Dehydration and Deolefins Project of Ningbo
Zhongjin Petrochemical Zhenhuan Permit [2025] No. 65
Ningbo Niluoshan New Energy Boiler Coal-to-Gas
Conversion and Unit Configuration Project Ningbo Environmental Construction (2025) No. 94
Yisheng Dahua Petrochemical 5# Berth Cargo Type Dalian Environmental Impact Assessment Approval [2025] No.Increase Project 000033
The listed company was subject to abnormal production stoppage during the reporting period
□Applicable RNot applicable
Relevant approvals permits qualifications and validity terms
RApplicable □Not applicable
Unit approved Qualification / license Approval department Validity term
Rongsheng
Petrochemical Pollutant Discharge Permit
Hangzhou Municipal Ecology and
Environment Bureau June 26 2030
Measurement standard assessment certificate
ZPC (Standard plant for Class 0.05 digital pressure Zhoushan Municipal Administration for Market Regulation July 29 2029 measurement)
Measurement standard assessment certificate
ZPC (Standard plant for Class II platinum Zhoushan Municipal Administration for Market Regulation November 7 2028 resistance thermometer)
Measurement standard assessment certificate
ZPC (Standard plant for working-base metal Zhoushan Municipal Administration
thermocouple) for Market Regulation
November 5 2028
Measurement standard assessment certificate
ZPC (Standard plant for Class I platinum rhodium Zhoushan Municipal Administration for Market Regulation November 5 2028 10-platinum thermocouple)
ZPC Measurement standard assessment certificate Zhoushan Municipal Administration (Sulfur Dioxide Analyzer Calibration Device) for Market Regulation December 16 2030
Measurement standard assessment certificate
ZPC (Hydrogen Sulfide Gas Detector Calibration Zhoushan Municipal Administration
Device) for Market Regulation
December 17 2030
Measurement standard assessment certificate
ZPC (Volatile Organic Compound Photoionization Zhoushan Municipal Administration December 17 2030
Detector Calibration Device) for Market Regulation
ZPC Measurement standard assessment certificate Zhoushan Municipal Administration (Combustible Gas Alarm Calibration Device) for Market Regulation November 19 2030
Measurement standard assessment certificate
ZPC (Oxygen Analyzer and Oxygen Detection Zhoushan Municipal Administration
Alarm Calibration Device) for Market Regulation
November 19 2030
Measurement standard assessment certificate
ZPC (Carbon Monoxide Detection Alarm Zhoushan Municipal Administration
Calibration Device) for Market Regulation
November 19 2030
16 / 275Full content of 2025 Annual Report
Measurement standard assessment certificate
ZPC (Ammonia Detection Alarm Calibration Zhoushan Municipal Administration for Market Regulation November 19 2030 Device)
Special Equipment Inspection and Testing
ZPC Agency Approval Certificate (Class C Zhoushan Municipal Administration
Inspection Agency) for Market Regulation
February 12 2030
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 2030
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
Project Approval List Specified in Technical Aircraft Airworthiness Approval ZPC Standards (3# jet fuel) Department of Civil Aviation July 13 2026 Administration
Aircraft Airworthiness Approval
ZPC Project Approval List by Civil Aviation Oil 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 /
ZPC Radiation Safety Permit Zhoushan Ecology and Environment Bureau March 4 2029
Zhejiang Provincial Technical
ZPC Safety Production Standardization Certificate Committee on Safety Production March 6 2027
Standardization
Zhongjin
Petrochemical Pollutant Discharge Permit
Zhenhai Branch of Ningbo Ecology
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
Petrochemical Safe Production License
Zhejiang Provincial Emergency
Management Department June 4 2026
Zhongjin Registration Certificate for Hazardous Registration Center for Chemicals of
Petrochemical Chemicals the Ministry of Emergency October 12 2028 Management
17 / 275Full content of 2025 Annual Report
Niluoshan New Pollutant Discharge Permit Zhenhai Branch of Ningbo Ecology Energy 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 2028
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 June 10 2030
Yongsheng National Industrial Product Manufacture Zhejiang Provincial Administration
Technology Licensing Certificate for Market Regulation August 11 2026
Yongsheng Pollutant Discharge Permit Shaoxing Ecology and Environment Technology Bureau February 6 2029
Shengyuan
Chemical Fiber Pollutant Discharge Permit
Hangzhou Municipal Ecology and
Environment Bureau June 25 2030
Engaged in oil processing oil trade industry
RYes □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 everything 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 RNo
Engaged in pesticide industry
□Yes RNo
Engaged in chlorine-alkali and soda ash industry
□Yes RNo
II. Industry that Company is in during the Reporting Period
The company must comply with the disclosure requirements for the chemical industry as outlined in the Shenzhen Stock Exchange
Guidelines for Self-Regulatory Supervision of Listed Companies No. 3 – Industry Information Disclosure.Looking back at 2025 in the face of a complex external environment characterized by the coexistence of global
economic growth and the easing of inflationary pressures as well as the maintenance of loose monetary policies by
major economies China's economy has demonstrated strong resilience and vitality. It has continued the
development trend of making steady progress while maintaining stability and long-term improvement injecting
certainty into the global economic recovery and providing broad market opportunities. Against this macroeconomic
backdrop the petrochemical industry has closely focused on the main theme of transformation towards intelligence
high-end and green development actively resolved structural contradictions and steadily improved the quality and
efficiency of development. Leading enterprises in the industry have fully played their guiding roles focusing on the
extension and reinforcement of the industrial chain and continuously built core competitive advantages by
deepening technological innovation accelerating model upgrades and promoting multi-energy integration. During
the reporting period the production and demand of major petrochemical products and materials achieved steady
18 / 275Full content of 2025 Annual Report
growth and the export business also maintained a good momentum of expansion. The industry as a whole has taken
a more solid step on the track of high-quality development.
(1) Global economy
In 2025 against the backdrop of multiple challenges facing the global economy the world economy has shown
a steady operating trend with the growth structure continuously optimized and endogenous drivers constantly
accumulating. According to estimates by authoritative institutions such as the International Monetary Fund (IMF)
and the World Bank the annual global GDP growth rate was approximately 3% maintaining a commendable growth
resilience in a complex and volatile environment. Among them developed economies operated steadily with
economic growth rates in the Eurozone and the United States at approximately 1.3% and 2% respectively showing
a trend of stabilizing and improving. Emerging economies continued to serve as the "main engine" and "power
source" of global growth contributing more than 70% of the global economic increment demonstrating vigorous
development vitality and strong supporting roles and injecting more certainty into the recovery and prosperity of
the world economy.During the reporting period with increasing uncertainties such as slowing global economic growth and a
complex and volatile trade environment international crude oil prices showed a volatile downward trend throughout
the year. Taking Brent crude oil prices as an example the price in January at the beginning of the year was 78.35
USD/barrel which then fluctuated and fell month by month dropping to 61.63 USD/barrel by December with the
annual price center shifting downward compared to previous years. The weak trend of oil prices reflected both the
growth pressure on the demand side of the global market and brought structural adjustment and reshaping to the
cost side of the petrochemical industry. According to a report released by the American Chemistry Council (ACC)
the growth in US chemical production in 2025 was only 0.7% with weak growth in the industrial sector and the
industry as a whole continued its low-speed growth trend. The challenges faced by the European chemical industry
were even more severe. According to statistics from the European Chemical Industry Council (Cefic) following a
year-on-year decrease in production of 2.4% in 2024 the production of European chemical products fell again by
2% in 2025 with cost pressures continuing to increase and global competitiveness being severely impacted.
USD/Barrel Brent crude oil price in 2025
90
85
78.35
80
74.95
7571.47
69.8069.55
7066.4667.2667.58
64.0163.9563.66
6561.63
60
55
50
January February March April May June July August September October November December
Source: Wind
(2) China's economic situation
In 2025 China's economy continued to move forward steadily in a complex and severe external environment
with high-quality development being solidly advanced. Data from the National Bureau of Statistics shows that the
19 / 275Full content of 2025 Annual Report
annual Gross Domestic Product (GDP) reached RMB 140187.9 billion representing a year-on-year increase of
5.0% and the economic scale stepped up yet again.
Looking back at the development trajectory of the past five years China's economy has demonstrated strong
resilience and potential: From 2021 to 2025 GDP rose steadily from RMB 117382.3 billion to RMB 140187.9
billion with a cumulative increment of over RMB 22.8 trillion over the five-year period achieving a rational growth
in quantity and an effective improvement in quality. In terms of growth rates despite the impact of multiple factors
exceeding expectations in 2022 the economic growth rate remained within a reasonable range of 3.0%; thereafter
the growth rate recovered step by step with growth rates of 5.4% and 5.0% in 2023 and 2024 respectively. In 2025
a growth of 5.0% was achieved on a high base reflecting a sound momentum of recovery and improvement as well
as making steady progress while maintaining stability.This series of data indicates that despite the ever-changing external environment and multiple domestic
challenges China's economy has maintained the resilience and strategic focus to overcome difficulties and navigate
hurdles. Over the past five years the economic aggregate has reached new levels demonstrating the deep potential
of the super-large market demand and reflecting the solid pace of continuous industrial chain upgrading. Forging
ahead under pressure and accumulating strength through adjustment the steady growth of China's economy has not
only provided solid support for the improvement of domestic livelihoods and industrial transformation but also
injected valuable stability and confidence into the continuously volatile global economy.
2021-2025 Gross Domestic Product (GDP)
Unit: %
Unit: RMB 100 million
160000020
1401879
1348066
1294272
1234029
1173823
120000015
8000008.610
5.45.05.0
4000005
3.1
00
20212022202320242025
Gross Domestic Product (GDP) Growth rate (Right axis)
Source: National Bureau of Statistics
(3) Situation of the petrochemical industry
In 2025 China's petroleum and chemical industry forged ahead under pressure amidst severe market tests
carving out a development curve characterized by "steady progress in production short-term pressure on efficiency
and continuous optimization of structure." According to data from the China Petroleum and Chemical Industry
Federation (CPCIF) the industrial added value of enterprises above designated size increased by 6.9% year-on-year
1 percentage point higher than the national industrial average. Crude oil production achieved its seventh consecutive
year of growth and natural gas production achieved its ninth consecutive year of growth further enhancing the
20 / 275Full content of 2025 Annual Report
energy security guarantee capability. Meanwhile against the backdrop of deteriorating global trade environments
the export value of petrochemical products grew against the trend by 2.5% demonstrating strong industrial
resilience and international competitiveness.During the reporting period from the perspective of internal structure the performance of the three major
segments showed obvious differentiation: the chemical segment performed relatively steadily with industrial added
value growing by 7.6% and operating revenue achieving positive growth of 0.5%; although the profit of the oil and
gas segment decreased by 19.1% its profit margin on revenue of 19.8% still indicated a strong profit base; the
refining segment was dragged down by the decline in refined oil consumption making the transformation of
"reducing refined oil and increasing chemical products" shift from a strategic choice to a necessity for survival.It is worth noting that the industry is accelerating its "gear shift" under pressure. On the one hand the energy
consumption structure is undergoing profound changes. In 2025 the domestic production and sales of gasoline both
decreased for the first time and the penetration rate of new energy passenger vehicles exceeded 55% driving
refining and chemical enterprises to accelerate their transformation toward chemical materials and specialty
products. On the other hand the pace of high-end upgrading has accelerated. In fields such as new energy materials
high-end electronic chemicals and bio-manufacturing a number of key technologies have achieved breakthroughs
and the intensity of research and development investment has continued to rise accumulating momentum for the
"15th Five-Year Plan."
Overall 2025 was a year for the petrochemical industry to "bottom out and accumulate strength" while
operating at a low level. Faced with price troughs and demand differentiation the industry did not wait passively
but sought breakthroughs through innovation and responded to trends through transformation. With the
implementation of policies such as the Work Plan for Steady Growth in the Petrochemical and Chemical Industry
and the Implementation Plan for the Innovative Development of the Fine Chemical Industry the path toward high-
end intelligent and green development has become increasingly clear. As an important pillar of the national
economy the petrochemical industry is undergoing a profound transformation from "scale expansion" to "value
reconstruction."
S/N Policy Issuing authority Time
Opinions of the General Office of the State Council on
1 Promoting the High-quality Development of Refined Oil State Council January 27 2025
Circulation
2 Guiding Opinions on Energy Work in 2025 National Energy Administration February 27 2025
3 Guidelines for Project Application of Energy Industry Standard Plans in 2025 National Energy Administration March 7 2025
4 Key Points of Work for the Synergistic Transformation and
Ten departments including the
Development of Digitalization and Greening in 2025 Cyberspace Administration of April 25 2025 China
5 Ten Measures of the State Administration for Market Regulation State Administration for Market to Rectify "Involutionary" Competition Regulation May 19 2025
6 Administrative Measures for the Circulation of Refined Oil Products Ministry of Commerce August 1 2025
7 Measures for the Management of Special Investment within the National Development and Central Budget for Energy Conservation and Carbon Reduction Reform Commission (NDRC) September 19 2025
Work Plan for Steady Growth in the Petrochemical and Seven departments including 8 Chemical Industry (2025-2026) the Ministry of Industry and September 25 2025 Information Technology
9 Administrative Measures for the Planning Construction and National Development and Operation of Oil and Gas Infrastructure Reform Commission October 30 2025
10 Implementation Opinions on the Special Action of "Artificial Eight departments including the December 25 2025 Ministry of Industry and
21 / 275Full content of 2025 Annual Report
Intelligence + Manufacturing" Information Technology
(4) Industry position and competitive advantages of the Company
As one of the world's leading chemical materials manufacturers Rongsheng Petrochemical is the main operator
of the world's largest single integrated refining and chemical project a 40 mtpa green petrochemical base. It is an
important global producer of polyester new energy materials engineering plastics and high value-added polyolefins.It is the world's largest producer of chemical products such as PX and PTA and its production capacity of multiple
products such as polyethylene polypropylene PET EVA ABS and PC ranks among the top in the world. In 2025
the Company's core position in the global chemical industry continued to be consolidated: it ranked 14th in the "Top
50 Global Chemical Companies" by Chemical & Engineering News (C&EN) of the United States 9th in the ICIS
"Top 100 Global Chemical Companies" and 7th in the Chemical Week "Billion Dollar Club" of the United States.Its brand influence continued to expand ranking 5th in the Brand Finance "2025 Global Chemical Most Valuable
Brands" list. Meanwhile the Company also performed excellently in the field of sustainable development with its
MSCI ESG rating upgraded to Grade A reaching industry-leading levels in carbon emission reduction water
resource management and corporate governance which demonstrates a responsible and high-quality long-term
development pattern.Facing the new industry development trends in 2025 the Company continued to deepen its "vertical and
horizontal" strategic layout focusing on forging core capabilities to weather the cycles. In the vertical dimension
the Company has been continuously consolidating its refining-chemical integration advantages deeply tapping into
the "oil-to-chemical" potential continuously improving unit operation efficiency and comprehensive resource
utilization and strengthening its cost reduction and efficiency enhancement capabilities in all aspects. In the
horizontal dimension the Company has accelerated the high-end upgrading of its product structure focusing on
high-value-added fields such as new energy materials high-end resins and specialty chemicals. Relying on the
construction of major projects such as Jintang New Materials the Company has accelerated the improvement of its
full industrial chain coverage from basic chemical raw materials to high-end new materials building a more
diversified and resilient product matrix.In terms of global layout the strategic cooperation between the Company and Saudi Aramco has continued to
deepen. Both parties have achieved deep synergy in crude oil supply technological R&D and overseas market
expansion jointly promoting the expansion projects of Zhongjin Petrochemical and SASREF and the pace of
overseas layout has significantly accelerated. By continuously broadening the space for international development
the Company's ability to resist cyclical fluctuations and its competitiveness in the global market have been further
improved injecting strong momentum into a new round of high-quality development.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) Comprehensive industrial synergistic advantages
Through years of development and refinement the Company has seized opportunities during industry
adjustments to achieve rapid growth establishing a business model that spans "from a drop of oil to everything in
the world." By extending the industrial chain the Company has effectively reduced business costs achieved mutual
support between upstream and downstream sectors and enhanced its sustainable profitability and risk resistance.Building upon the complete polyester industrial chain of the controlling shareholder Rongsheng Petrochemical and
the associate shareholder Tongkun Group ZPC has successfully completed the final link in the entire process "from
a drop of oil to a strand of silk" establishing a massive advantage in upstream and downstream integration within
22 / 275Full content of 2025 Annual Report
the polyester industry while forming strong synergies with shareholders in other industrial chains.The interconnection between the Zhoushan Green Petrochemical Base and the Ningbo Petrochemical Base
enables the coordinated development of these two major bases. Pipeline transportation significantly reduces the
risks and costs associated with shipping and land transport. Large quantities of light hydrocarbon raw materials
produced as by-products at the Ningbo Petrochemical Base are transported via pipelines to the Zhoushan Green
Petrochemical Base as high-quality ethylene feedstock; meanwhile surplus oil products from the Zhoushan Green
Petrochemical Base can be sent to the Ningbo Petrochemical Base as premium feedstock for aromatics production.The ZPC project is equipped with supporting facilities that meet the crude oil supply requirements for both
phases of the project. The total storage capacity of the Mamu Crude Oil Depot and Yushan Island Crude Oil Depot
reaches 4.6 million cubic meters representing the largest supporting storage capacity for refining and chemical
integration in China. As the nation's most concentrated resource allocation base for oil and gas enterprises the
Zhejiang Free Trade Zone boasts over 30 million cubic meters of storage capacity across sites like Cezi Island and
Waidiao Island. Most of the oil pipeline networks are interconnected enabling localized transportation. The
Company is advancing the tank farm and terminal projects of the Jintang Crude Oil Storage and Transportation
Base constructing three new 300000-ton oil berths with a designed annual throughput of 50 million tons. The new
tank farm project has a total capacity of 4.64 million cubic meters and a designed annual turnover of 50 million tons.Upon completion of this project the economies of scale characterized by "large-scale import and export rapid
turnover" for terminal throughput and crude oil reserves will gradually become evident effectively delivering both
economic and social benefits.
(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 Zhoushan 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
23 / 275Full content of 2025 Annual Report
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.
(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
24 / 275Full content of 2025 Annual Report
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
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 2025 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
25 / 275Full content of 2025 Annual Report
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.At present the main products are shown in the following figure:
Note: products marked by dotted line / dotted box are products under planning.
26 / 275Full content of 2025 Annual Report
(2) Management measures
2025 marked the concluding year of the "14th Five-Year Plan" and a pivotal year for the Company's deep
cultivation of its core business and its strategic transformation. The Board coordinated the overall strategic
landscape leading all employees to navigate multiple challenges including the sluggish global economic recovery
and intensified industry competition. Adhering to the general principle of "seeking progress while maintaining
stability" our business performance saw steady improvement and the momentum for high-quality development
continued to strengthen.
1. Deepening Strategic Layout and Strengthening the Industrial Foundation
Rongsheng Petrochemical adhered to the path of "high-end intelligent and green" making scientific decisions
and precise investments to accelerate the construction of key projects. The strategic cooperation between the
Company and Saudi Aramco continued to deepen and bear fruit. Both parties achieved profound synergy in crude
oil supply technology R&D and overseas market expansion marking a critical milestone in our international layout.The first units of ZPC's High-performance Resin Project were completed and put into operation as scheduled. The
production capacity of high-end chemical materials continued to expand and the pace of extending the industrial
chain toward high-value-added sectors became more resolute. ZPC’s oil terminal successfully realized port opening
for new berths and the functions of our Singapore trading platform were further refined. Profit generation from
refined oil exports was significant and several product categories successfully expanded into overseas markets
continuously enhancing the resilience of our global supply chain network.
2. Fruitful Results in Innovation-Driven Growth Continuously Enhancing Core Competitiveness
Rongsheng Petrochemical consistently places innovation at the heart of its development continuously
increasing investment in Research and Development. Our R&D investment intensity remained at an industry-
leading level throughout the year. ZPC successfully earned multiple titles including "Manufacturing Single
Champion Enterprise" and "Provincial Advanced Intelligent Factory." Its digitalization cases were selected as
"Excellent Digital Transformation Cases of the Petroleum and Chemical Industry" for the 14th Five-Year Plan
underscoring the Company's innovation capabilities in digital management. The Company's digital transformation
has fully accelerated. Tools such as Smart Customer Service and AI Assistants are widely applied in production
management. The self-developed MES (Manufacturing Execution System) completed its iterative upgrade and the
Smart Material Coding System improved coding efficiency by over 85% propelling our digital management
capabilities into the industry's first tier.
3. Significant Progress in Green Development Leading the Industry in ESG Performance
Rongsheng Petrochemical resolutely implements the "Dual Carbon" strategy with the level of green
development continuously rising. The Company’s MSCI ESG Rating surged to Grade A ranking first among
domestic chemical enterprises. ZPC passed the QESEnM (Quality Environment Safety and Energy) integrated
management system certification and Hainan Yisheng Petrochemical was recognized as a national-level "Green
Factory." Numerous energy-saving technical renovation projects were implemented across the Company. ZPC’s
190 production optimization items yielded significant benefits and Zhongjin Petrochemical’s waste heat utilization
projects achieved annual energy savings of over 130000 tons of standard coal. With continuous declines in energy
consumption and carbon emission intensity the "green foundation" of our development has become even more
prominent.
4. Continuous Refinement of the Governance System Strengthening Risk Prevention and Control
Rongsheng Petrochemical continues to perfect its modern corporate governance system promoting a steady
increase in management efficiency. Throughout the year the Company convened 5 General Meetings of
Shareholders 7 Board Meetings and 6 Supervisory Committee Meetings. All major matters strictly followed
decision-making procedures with continuous enhancements in the scientific and standardized nature of our
decisions. In accordance with the requirements of the New Company Law and transitional arrangements for
27 / 275Full content of 2025 Annual Report
supporting systems the Company completed the abolishment of the Board of Supervisors before 2026. The
Company’s Articles of Association were amended to clearly strengthen the functions of the Audit Committee which
has fully assumed the powers and duties of the former Board of Supervisors. This has established a comprehensive
risk prevention and control system that is "horizontally to every edge and vertically from top to bottom."
(3) Operation synergy
1. Controlling shareholder
Rongsheng Holding ranks 118th on the Fortune Global 500 list 32nd among the top 500 Chinese enterprises
and 7th 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 controlled subsidiary 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: Through 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
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.The "power player alliance" of both parties realizes the forward deployment of raw material supply and the
expansion of global sales channels promotes resource sharing and industrial chain synergy and joins hands to build
a new industrial ecosystem of mutual benefit and win-win situation. As a practitioner of the "Belt and Road"
Initiative Rongsheng Petrochemical is dual-driven by "going out" and "bringing in" establishing a strategic
foothold in the Middle East and laying out a supply chain network around the Indian Ocean while attracting long-
term investment from international strategic capital into China injecting continuous vitality into its vigorous
development.
3. Refining and chemical sector
28 / 275Full content of 2025 Annual Report
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. ZPC is located in Zhoushan a part of East China which is
the main consumer of terminal chemicals. The Yangtze River Delta contains about 70% of China's production
capacity of plastics and chemical fibers with obvious regional advantages. 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; 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.Industrial AI has been deeply integrated into the core aspects of ZPC’s production and operations. ZPC has
constructed a new industrial intelligence system centered on "intelligent instrumentation + predictive maintenance
+ data governance" significantly enhancing production efficiency through data analysis and AI technologies. ZPC
has deployed an industrial control system with a scale of up to 1 million I/O points fully supporting the synergistic
improvement of production efficiency economic benefits and safety levels while driving the sustainable
development of the upstream and downstream industrial chains. Relying on over 1 million online instruments for
real-time monitoring of production processes combined with robotic inspection whole-process intelligent control
systems and intelligent safety risk control for the entire hazardous chemical transportation chain ZPC has achieved
a unit operation stability rate of ≥98.5% and an automatic control rate for major refining and chemical units of ≥
99% (significantly higher than the global refinery average of approximately 80%). Furthermore it has
comprehensively promoted the informationized visualized and intelligent management of safety access for
personnel vehicles and materials.
3.2. Zhongjin Petrochemical
29 / 275Full content of 2025 Annual Report
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
successfully achieved its first industrial application on ZPC’s 2# disproportionation unit (3.5 million tons/year).This catalyst features the excellent "Three Highs" characteristics of simultaneous high space velocity high
selectivity and a high conversion rate of heavy aromatics while demonstrating superior operational stability. Its
comprehensive performance and technical indicators have reached the current advanced industry levels enabling
import substitution. This reflects a staged progress in the Company's R&D and innovation capabilities and is of
great significance for continuously enhancing the operation of aromatics units improving raw material conversion
efficiency and achieving energy conservation and carbon reduction.
3.3. Rongsheng New Materials (Zhoushan)
As the expansion area of the Zhoushan Green Petrochemical Base Rongsheng New Materials (Zhoushan)
relies on ZPC and Ningbo Zhongjin Petrochemical to extend the industrial chain downstream and develop fine
chemicals and new chemical materials. The interconnection planning among ZPC Zhongjin Petrochemical and
Jintang New Materials is a core strategy for Rongsheng Petrochemical to build a synergetic development of the
entire industrial chain of "refining-aromatics-high-end new materials." Through infrastructure interconnection
industrial chain extension and policy coordination a cross-regional deep integration system has been established.Specifically ZPC has deployed crude oil storage and transportation base tank farms and terminal engineering in
Jintang as well as the Zhoushan-Ningbo Petrochemical Base interconnection pipeline project which will coordinate
and integrate storage resources for crude oil and various chemical products achieving efficient connectivity among
ZPC Zhongjin Petrochemical and the Jintang New Materials project through dedicated pipelines. At present the
project has commenced construction and relevant work is progressing in an orderly manner according to plan.
4.PTA sector
The Company's four major PTA production bases—Yisheng New Materials Yisheng Dahua Hainan Yisheng
and Zhejiang Yisheng—have a combined total production capacity of 21.5 million tons firmly ranking first in the
world in terms of scale. Relying on the integrated layout of the entire industrial chain the Company's PTA sector
has established significant competitive advantages in terms of upstream and downstream integrated synergy
logistics and economies of scale. In terms of upstream and downstream synergy the Company is equipped with
upstream PX capacity achieving a high proportion of self-sufficiency in the core raw material PX; downstream it
extends to cover products such as polyester bottle chips filaments and films with a prominent industrial chain
linkage effect. Regarding logistics each base is adjacent to premium coastal deep-water ports such as Ningbo and
Dalian equipped with large-scale dedicated terminals and transmission pipelines. Through modes such as pipeline
transportation and direct ship-to-shore delivery the comprehensive transportation cost is effectively reduced.Meanwhile the proximity to downstream polyester textile industrial clusters further enhances production and sales
response efficiency.Since the construction of the first private PTA production line in 2002 the Company has adhered to
independent innovation successively developing and building the first domestic PTA process package and
production units with independent intellectual property rights. It has achieved the first localized application of core
equipment such as large-scale oxidation reactors and high-speed pumps breaking the long-term dependence of
China's PTA industry on imported complete sets of patented technologies and driving the leapfrog development of
a large number of domestic equipment manufacturers. Concurrently we continuously carry out technical
transformation of existing equipment to improve production efficiency and product quality while continuously
30 / 275Full content of 2025 Annual Report
optimizing raw material consumption to ensure efficient utilization of resources.
5. Polyester sector
The Company has established a comprehensive polyester capacity system covering polyester filament
polyester bottle chips and polyester film forming a well-structured and highly efficient industrial layout. In the
field of polyester filament the Company primarily operates through two major production bases: Shengyuan
Chemical Fiber and Rongxiang Chemical Fiber with a total filament capacity ranking among the top players in
China. Notably Shengyuan Chemical Fiber empowers traditional production lines with digitalization to create "dark
factories" and realize "replacement of humans with machines" and has been awarded the "Intelligent Manufacturing
Excellent Scenario" by the Ministry of Industry and Information Technology. In the field of polyester film the main
production base is Yongsheng Technology with an annual capacity of 430000 tons ranking among the top four in
China. Through the development of differentiated products its product competitiveness and market influence
continue to increase. In the field of polyester bottle chips the Company leverages its industrial chain integration
advantages to continuously tap potential and increase efficiency. The current capacity for polyester bottle chips
reaches 5.3 million tons per year ranking second in the world and first in China. Relying primarily on the production
bases of Yisheng Dahua and Hainan Yisheng the Company consumes a portion of its PTA capacity locally
effectively strengthening industrial chain synergy and significantly enhancing overall profitability and
comprehensive competitive advantages. Furthermore Hainan Yisheng possesses an r-PET capacity of 50000 tons
per year. Its products have passed the U.S. Food and Drug Administration (FDA) certification confirming that they
can be used to produce PET containers with up to 100% recycled content for all types of food contact. Hainan
Yisheng has established a differentiated advantage in the fields of green low-carbon and circular economy and
was successfully selected as a "National Green Factory."
2. Income and cost
(1) Composition of operating revenue
Unit: RMB
20242023
Year-on-year
Proportion in Proportion in increase
Amount operating Amount operating (decrease)
revenue revenue
Totaloperating
revenue 308622318229.03 100% 326475162608.88 100% -5.47%
By industry
Petrochemical
Industry 255500488442.92 82.79% 289301177635.53 88.61% -11.68%
Polyester
chemical fiber 23394524139.61 7.58% 18507338180.98 5.67% 26.41%
industry
Trade and
others 29727305646.50 9.63% 18666646792.37 5.72% 59.25%
By product
Oil refining
products 106317955897.68 34.45% 117855712431.38 36.10% -9.79%
Chemical
products 117197993998.82 37.98% 121767959624.54 37.30% -3.75%
PTA 31984538546.42 10.36% 49677505579.61 15.21% -35.62%
31 / 275Full content of 2025 Annual Report
Polyester
chemical fiber 23394524139.61 7.58% 18507338180.98 5.67% 26.41%
film
Trade and
others 29727305646.50 9.63% 18666646792.37 5.72% 59.25%
By region
China 256652601640.89 83.16% 280740961976.87 85.99% -8.58%
Overseas 51969716588.14 16.84% 45734200632.01 14.01% 13.63%
In 2025 the Company (including affiliates) had chemical product revenue of RMB 247.9 billion.
(2) Industry product region and sales mode accounting for more than 10% of the Company's operating
revenue or operating profit
RApplicable □ Not applicable
The company must comply with the disclosure requirements for the chemical industry as outlined in the Shenzhen
Stock Exchange Guidelines for Self-Regulatory Supervision of Listed Companies No. 3 – Industry Information
Disclosure.Unit: RMB
Year-on-year
Gross increase Year-on-year
Year-on-year
increase
Operating revenue Operating cost profit (decrease) in increase (decrease) in (decrease) in margin operating operating cost gross profit revenue margin
By industry
Petrochemic
al Industry 255500488442.92 218745966236.45 14.39% -11.68% -13.44% 1.74%
Polyester
chemical
fiber 23394524139.61 23136513191.87 1.10% 26.41% 27.16% -0.58%
industry
Trade and
others 29727305646.50 29041107310.63 2.31% 59.25% 60.55% -0.79%
By product
Oil refining
products 106317955897.68 81947962998.84 22.92% -9.79% -15.65% 5.35%
Chemical
products 117197993998.82 104365714868.57 10.95% -3.75% -0.80% -2.65%
PTA 31984538546.42 32432288369.04 -1.40% -35.62% -35.59% -0.04%
Polyester
chemical 23394524139.61 23136513191.87 1.10% 26.41% 27.16% -0.58%
fiber film
Trade and
others 29727305646.50 29041107310.63 2.31% 59.25% 60.55% -0.79%
By region
China 256652601640.89 219733162554.92 14.39% -8.58% -9.94% 1.29%
Overseas 51969716588.14 51190424184.03 1.50% 13.63% 13.72% -0.08%
By sales mode
In the case that the statistical standards for main business data of the Company are adjusted during the reporting
32 / 275Full content of 2025 Annual Report
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 R 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 R No
(3) Whether revenue from physical sales is higher than service revenue
RYes □No
Year-on-year
Industry Item Unit 2025 2024 increase
(decrease)
Sales quantity 10000 tons 4641.65 4833.50 -3.97%
Petrochemical Production 5553.43 5626.61 -1.30%
Industry quantity 10000 tons
Inventory 10000 tons 92.00 96.68 -4.84%
Sales quantity 10000 tons 404.81 284.73 42.17%
Polyester chemical Production
fiber industry quantity 10000 tons
591.88379.2656.06%
Inventory 10000 tons 19.73 19.02 3.73%
Description of reasons for relevant data increasing/decreasing by more than 30% year-on-year
RApplicable □ Not applicable
During this reporting period the sales volume and inventory of polyester chemical fiber products increased
significantly compared to the same period last year mainly due to the full-scale commissioning of the 1.5 mtpa
multifunctional polyester chip expansion project of the subsidiary Yisheng Dahua and the commissioning of the
500000-ton-per-year intelligent functional fiber project of subsidiary Shengyuan Chemical Fiber.
(4) Performance of major sales and procurement contracts signed by the Company as of the current
reporting period
□ Applicable R Not applicable
(5) Composition of operating costs
Industry and product categories
Unit: RMB
2025 2024 Year-on-year
Industry Item Proportion in Proportion in increase Amount operating cost Amount operating cost (decrease)
Petrochemical Raw material 19557524417Industry 6.82 89.40%
23008796344
7.6191.05%-1.65%
Petrochemical Labor wage 1505156575. 0.69% 1629097178. 0.65% 0.04%
33 / 275Full content of 2025 Annual Report
Industry 99 37
Petrochemical
Industry Depreciation
129208303425.91%11485497958.00.884.54%1.37%
Petrochemical Energy 7395409830. 8088775842.Industry 30 3.38% 84 3.20% 0.18%
Petrochemical 1349325311. 1415340457.Industry Other 34 0.62% 45 0.56% 0.06%
Total 21874596623 100.00% 252706674886.45 5.15 100.00%
Polyester
chemical fiber Raw material 21036753529 16700812031.94 90.92% .91 91.78% -0.86% industry
Polyester
chemical fiber Labor wage 419060277.00 1.81% 243245412.13 1.34% 0.47%
industry
Polyester
chemical fiber Depreciation 362780023.72 1.57% 222943670.72 1.23% 0.34%
industry
Polyester
chemical fiber Energy 899435050.70 3.89% 736617398.02 4.05% -0.16%
industry
Polyester
chemical fiber Other 418484310.51 1.81% 291872319.41 1.60% 0.21%
industry
Total 23136513191 18195490832.87 100.00% .19 100.00%
Unit: RMB
Year-on-year
2025 2024 increase
Product
Item (decrease) categories
Proportion in Proportion in
Amount operating cost Amount operating cost
Oil
refining Raw 72664201523.07 88.67% 87489852797.32 90.06% -1.39%
products material
Oil
refining Labor 613968625.26 0.75% 718718241.18 0.74% 0.01%
products wage
Oil
refining Depreci 5269786918.37 6.43% 5051388916.49 5.20% 1.23%
products ation
Oil
refining Energy 2952832300.12 3.60% 3431518474.45 3.53% 0.07%
products
Oil
refining Other 447173632.02 0.55% 457807507.08 0.47% 0.08%
products
Total 81947962998.84 100.00% 97149285936.52 100.00%
Chemical Raw 92596960612.96 88.73% 94982926212.71 90.28% -1.55%
34 / 275Full content of 2025 Annual Report
products material
Chemical Labor 797008253.39 0.76% 786101524.14 0.75% 0.01%
products wage
Chemical Depreci 6818306283.07 6.53% 5485471675.60 5.21% 1.32%
products ation
Chemical Energy 3661702402.83 3.51% 3530012517.16 3.36% 0.15% products
Chemical Other 491737316.32 0.47% 421039023.32 0.40% 0.07% products
Total 104365714868.57 100.00% 105205550952.93 100.00%
PTA Raw 30314082040.79 93.47% 47615184437.58 94.55% -1.08% material
PTA Labor 94179697.34 0.29% 124277413.05 0.25% 0.04% wage
Depreci
PTA 832737140.56 2.57% 948637366.79 1.88% 0.69% ation
PTA Energy 780875127.35 2.41% 1127244851.23 2.24% 0.17%
PTA Other 410414363.00 1.26% 536493927.05 1.07% 0.19%
Total 32432288369.04 100.00% 50351837995.70 100.00%
Polyester
chemical Raw 21036753529.94 90.92% 16700812031.91 91.79% -0.87%
fiber film material
Polyester
chemical Labor 419060277.00 1.81% 243245412.13 1.34% 0.47%
fiber film wage
Polyester
chemical Depreci 362780023.72 1.57% 222943670.72 1.22% 0.35%
fiber film ation
Polyester
chemical Energy 899435050.70 3.89% 736617398.02 4.05% -0.16%
fiber film
Polyester
chemical Other 418484310.51 1.81% 291872319.41 1.60% 0.21%
fiber film
Total 23136513191.87 100.00% 18195490832.19 100.00%
Notes: The raw material prices decreased year-over-year during the reporting period while the fixed asset
capitalization led to increased depreciation.
(6) Whether the scope of consolidation has changed during the reporting period
RYes □No
1.Increase in consolidation scope
Company name Acquisition method Date of equity acquisition
Zhejiang Shenghui New Materials Co. Ltd. New establishment March 27 2025
35 / 275Full content of 2025 Annual Report
Zhejiang Petrochemical New Materials New establishment October 20 2025
(Zhoushan) Co. Ltd.
2. Decrease in consolidation scope
Company name Acquisition method Date of disposal
Zhejiang Rongshen New Materials Co. Ltd. Business deregistration March 24 2025
Zhejiang Shengcheng New Materials Co. Ltd. Business deregistration March 24 2025
Zhejiang Huiyu New Materials Co. Ltd. Business deregistration March 24 2025
Rongsheng Energy (Zhoushan) Co. Ltd. Share sales December 26 2025
(7) Significant changes or adjustments to the Company’s business products or services during the
reporting period
□ Applicable R Not applicable
(8) Major sales customers and major suppliers
Major sales customers
Total sales amount of the top five customers (RMB) 106719148024.24
Proportion of total sales amount of the top five customers in total annual sales 34.59%
Proportion of related party sales in total annual sales among the top five customers 3.30%
Top 5 customers of the Company
S/N Customer Sales amount (RMB) Proportion in total annual sales
1 Customer 1 49197671544.80 15.94%
2 Customer 2 18573151198.22 6.02%
3 Customer 3 13598212729.89 4.41%
4 Customer 4 12953215176.34 4.20%
5 Customer 5 12396897374.99 4.02%
Total -- 106719148024.24 34.59%
Other information of major customers
□ Applicable R Not applicable
Major suppliers
Total purchase amount of the top five suppliers (RMB) 166053780714.06
Proportion of total purchase amount of the top five suppliers 57.29%
in total annual purchase amount
Proportion of related party purchase amount in total annual
purchase amount of the top five suppliers 37.93%
Top 5 suppliers of the Company
Proportion in total annual
S/N Supplier Purchase amount (RMB) purchase amount
1 Supplier 1 100791083032.26 34.77%
36 / 275Full content of 2025 Annual Report
2 Supplier 2 29102648479.51 10.04%
3 Supplier 3 19497154103.55 6.73%
4 Supplier 4 9164517386.96 3.16%
5 Supplier 5 7498377711.78 2.59%
Total -- 166053780714.06 57.29%
Other information of major suppliers
□ Applicable R Not applicable
During the reporting period the company's trading business revenue accounted for more than 10% of its operating
revenue.□ Applicable R Not applicable
3. Expenses
Unit: RMB
Year-on-year increase Description of major 2025 2024 (decrease) changes
Sales expenses 192006678.56 193112300.81 -0.57%
Administrative 987716003.24 976713694.79 1.13%
expenses
Financial expenses 5617068173.04 7131339847.35 -21.23%
R&D expenses 4989246863.51 5101483285.60 -2.20%
4. R&D investment
RApplicable □ Not applicable
37 / 275Full content of 2025 Annual Report
Expected
Name of main R&D impact on the
projects Project purpose Project progress Objectives to be achieved company’s future
development
Conserve energy
Development of This project achieves precise control of the heating and reduce
Stoichiometric Combustion furnace air supply system by rapidly detecting CO in the flue gas and converting the detection results into The project has been
consumption and
Optimization Technology implemented. Oxygen content in the F2401 furnace $\leq$ 1.5% vol. improve the
for Heating Furnaces real-time simulated control signals to regulate the company's frequency of the blower motor. economic
benefits.Based on the feed rate and operating conditions of the
raffinate tower and on the premise of ensuring that
Development of Tray the top and bottom extraction quality meets the
Technology Adapted to indicators without changing the original tower
High Liquid-Gas Ratio and thermal load this project develops a tray adapted to The project has been Improve separation precision under unchanged
Improve the
implemented. operating conditions. product quality of Large Liquid Volume high liquid-gas ratio and large liquid volume the tower.Conditions conditions by optimizing the tray structure and
combining the characteristics of sieve holes and float
valves.This project aims to reduce the corrosion rate of the Reduce
Development of vacuum pump by adding a set of acid-base equipment
Technology to Reduce neutralizing agent injection equipment at the inlet of The project has been Adjust the acidic environment in the pre-adsorption corrosion extend
Corrosion in PSA Vacuum the pre-adsorption vacuum system to adjust the acidic implemented. vacuum pump chamber to a near-neutral equipment
Pump Outlet Pipelines environment inside the vacuum pump chamber to a environment. service life and
near-neutral environment. indirectly create benefits.The disproportionation reaction products of the unit
Low-temperature Waste still remain at approximately 130°C after heat
Heat Recovery and To save energy exchange with the feed via a tube-wound heat
Utilization Technology for and improve exchanger and are subsequently cooled to 45°C by Under implementation. Recover more than 20 MW of heat.Disproportionation energy utilization high-efficiency wet air coolers consuming
Reaction Products efficiency. approximately 2.52 × 10? kWh of electricity annually
and losing approximately 40MW of heat. This project
38 / 275Full content of 2025 Annual Report
aims to conduct material heat exchange or produce
high-quality steam through energy conversion.
1. Technical agreement for
the RTO furnace signed;
2. Completed basic design
review for the 10000 t/a
POE project; 3.Completed technical Enrich the
Joint Development and (1) Complete process package development; (2)
negotiations signing of company's
Industrialization Complete engineering design equipment/pipeline
technical agreements and product variety
Application Research of installation and unit handover; (3) Complete PSSR
vendor drawing reviews
for 11 categories of POE production reaches 10000 tons/year. increase product
10000 t/a POE acceptance of the new project conduct joint trial added value and runs and initiate material feeding and startup. process equipment; 4. Completed technical enhance market
exchanges and signing of competitiveness.technical agreements for
10 types of startup
chemicals/catalysts and
established the auxiliary
materials ledger.
(1) Resource potential analysis for reforming
feedstock; (2) Economic efficiency analysis of Complete the feasibility study on narrow-cutting of
Development of Precision overall process optimization; (3) Research on the the C10 component in coal-to-diesel fraction; form a feasibility of C10/C11 precision separation work report on the optimization of C10 narrow- Improve fuel Separation Technology for
C10 in Coal-to-Diesel obtaining baseline operating parameters of the Project implemented cutting and vacuum rectification operating
purity and
Fraction Oil fractionation tower through pilot and semi-pilot parameters; achieve a breakthrough in key
optimize product
experiments to form a process data package that technologies for continuous vacuum precision quality.meets the design requirements of two million- (4) distillation and separation of C10 components.Achievement of industrial application.Long-cycle Operation 1) Research and upgrade the application mechanism 1. Continue to observe the Extend
Research of Reforming of pan valves; 2) Conduct structural research and application effect of ball Achieve long-cycle operation of the regenerative lock equipment life
Regenerative Lock Hopper surveys on ball valves; 3) Introduce and test other valves; 2. Prepare hopper system to ensure the safe and stable operation and reduce
System types of valves for comparative performance materials for project of the unit. maintenance analysis. closure. costs.Localization Exploration of 1. Damage cause analysis; 2. Research on gasket One localized gasket has Save approximately 20000 tons of PX loss; the unit Realize domestic
Rotary Valve Rotor Plate material hardness density expansion edge been put into online price of localized gaskets is RMB 300000/piece substitution and
Gaskets and Maintenance shrinkage and flatness; 3. Optimization of the operation in the 3# lower than imported ones; save maintenance costs; reduce
39 / 275Full content of 2025 Annual Report
fixation method between the gaskets and the rotor Aromatics unit; the other total estimated savings: RMB 14.9 million/time. procurement
plate. two gaskets are costs.temporarily stored in the
Materials Department.
1. Research on optimizing decoking steps to
Operating Cycle Research completely remove the coke layer inside furnace 1. The average operating cycle of the 3# Ethylene
Optimize
for Ultra-Selective Cracking tubes and reduce residual coke precursors; 2. Project implemented liquid-phase furnace is increased by 15–20 days; 2.cracking
Optimization of furnace feeding by reducing COT The comprehensive energy consumption of the unit is efficiency and Furnace of 3# Ethylene Unit fluctuations and increasing dilution steam during the reduced by 2%. increase ethylene
early feeding stage to extend the operating cycle. yield.
1. Implement technical transformation to separate the
Localization Research of antistatic agent injection systems of two units for Mixed at 50% 1. The polymerization reaction is stable using Reduce import
Antistatic Agents for independent trials; 2. Prepare localized antistatic concentration with localized antistatic agents; 2. The annual consumption
Spherizone Polypropylene agent trial plans with risk assessments; 3. Complete imported antistatic agents of antistatic agents is between 150–180 tons and the
dependence and
optimize
Process trials; 4. Gradually increase usage based on for long-cycle trial testing; cost of antistatic agents is expected to decrease by
operation; 5. Conduct long-cycle testing. operation is normal. RMB 30000–40000 per ton.production costs.Process Flow Optimization
Research for Triple Heat 1. Research and analyze the causes of leakage in 1. Triple heat exchanger feed temperature
Optimize the heat
Exchanger in triple heat exchangers E-1201/E-2201; 2. Formulate
Operating stably after $\geq$ 120°C; 2. Operating cycle reaches 12 months; exchange process
Dehydrogenation Unit of feasible optimization technical plans; 3. Evaluate the
replacement; applying for
project closure. 3. Reduce losses caused by leakage: 75t/h * 24h * 15d
and improve
Styrene Plant operating cycle of the heat exchangers. * 0.05 * 2 = RMB 27 million.energy utilization
efficiency.Research on optimization
schemes for coal
gasification units and
overall efficient low-
(1) Industrial application schemes for grey water carbon low-cost grey
Research and Application of treatment and unit optimization; (2) Unit 1. Submit 1 industrial application research report; water treatment schemes
Process Optimization and modification design and key equipment selection; (3) form process optimization and efficient low-carbon was conducted; Reduce carbon
Efficient Low-carbon Equipment/material procurement and modification; low-cost grey water treatment technologies for coal formulated technical plans emissions and
Low-cost Grey Water (4) Industrial application trials to solve scale-up gasification units; 2. Realize industrial application to for wastewater stream realize green
Treatment Technology in effects and optimize parameters to reduce ammonia solve technical problems in the production process of segregation quality-based production.Coal Gasification nitrogen and hardness; (5) Long-cycle operation coal gasification and downstream sewage treatment treatment and online
research; (6) Summary and acceptance. units. hardness/ammonia
nitrogen removal;
achieved pH optimization
control via multi-
functional high-efficiency
40 / 275Full content of 2025 Annual Report
hardness removal agents.Development and
Application of Process 1. Research on selective disproportionation
Package for 1.4 Mt/a PX technology including conversion rates and catalyst The targets for this quarter 1. Shape-selective disproportionation conversion rate Break through
Unit using Selective parameters; 2. Research on overall feed composition were not met primarily ≥30%; 2. Shape-selective disproportionation yield of technical barriers
Toluene Disproportionation and energy consumption for crystallization PX units; due to slow design benzene + C8 aromatics ≥93%; 3. Unit energy and achieve
+ PX Cryogenic 3. Research on optimal data matching for the progress and an overall lag in the schedule. consumption ≤15kg standard oil/ton PX;
large-scale
Crystallization Combined combined process. production.Process
Research on Optimized 1. Analyze operational difficulties during startup Reduce pollutant
Control of NOx Emissions shutdown feeding and withdrawal to optimize emissions and
from Cracking Furnace Flue operations; 2. Detect residual activity of spent Under implementation Extend catalyst service life by more than 1 year. improve
Gas catalysts and consider adjusting installation and environmental manufacturing methods. protection levels.
1. Research on process operations and parameters of Extend
Long-cycle Operation process water and dilution steam systems; 2. equipment
Research for Dilution Steam Research on material and corrosion resistance of E- Under implementation No leakage occurs in the E-1271 tube bundle for 1 operation cycles Generator E-1271 of 1271 tube bundle; 3. Research on chemical formula year. and reduce
Ethylene Unit and dosing; 4. Research on impact of abnormal maintenance
conditions (e.g. quench water emulsification). costs.
1. Technical modification Optimize
Optimization Research of To optimize the discharge of rich and lean absorption of the connection point shutdown
the Shutdown Process of water to meet standards reduce shutdown time and completed; 2. Pipeline COD $\leq$ 800 mg/L. processes and
Ethylene Glycol Unit advance the startup time of the unit. materials arrived and reduce resource
under pre-fabrication. waste.Research on 0.2MpaG Add a backup refrigeration machine PK-6001D to 1. Installation of Lithium
Steam Recovery ensure chilled water reaches 10°C during high-load Bromide chiller and 1. PK-6001 chilled water outlet temperature reaches
Recover steam
Technology in Ethylene summer operation ensuring EO absorption effect and pipelines completed; 2. 10°C; 2. C-3002 tail gas volume remains below 18 t/h;
resources and
Glycol Unit safe storage. Unit operating normally 3. 0.2 MpaG vent valve opening is zero.reduce energy
after commissioning. consumption.
1. Add air hammers at the inlet; 2. Add heat tracing Optimize
Optimization Research for to fluidized bed horizontal pipe; 3. Individually vent 1. Whiteness is stably controlled at approximately 45; dehydration
Extruder System of ABS die waste gas to washing tower; 4. Add air hammers Under implementation 2. Moisture is stably controlled at approximately 7%– efficiency and
Coagulation Unit and level switches at the outlet for bridging pre- 10%. enhance product
warnings. quality.
41 / 275Full content of 2025 Annual Report
Optimization of manifold structures to solve flow 1. Thickness measurement Research and Optimization
of Anti-vortex Structure for deviation and erosion problems caused by catalyst
inspections on No. 1 and
Heating Furnace Manifolds dust when processing capacity increases. CFD
No. 2 Reforming units
showed no obvious The annual thinning rate at the end of the heating
Reduce corrosion
in Large Continuous software (Fluent) is used for simulation to identify thinning in the new furnace manifold is less than 5%.and ensure safe
production.Reforming Units vortex-prone areas and optimize design for safe production. manifold; overall operation is good.
1. The debutanizer (1135-C-0403) of the 2# 3.5 Mt/a
diesel hydrocracking unit was originally designed
with 37 trays. In actual operation due to high LPG
yield the debutanizer trays were overloaded causing
C5 in LPG before desulfurization and C4 in mixed
naphtha at the bottom to exceed indicators. Changsha
Boneng Technology Co. Ltd. was selected as the
internals manufacturer through bidding. After
simulation design they completed manufacturing in
January 2022 and the installation was completed
during shutdown maintenance in April 2024.However expected effects were not achieved after
startup on May 1 2024. Changsha Boneng fed back Completed modification of
Adaptive Application and that the small tower diameter made it impossible to screw vacuum pump inlet
1. Precise cutting and separation of debutanizer top
Tapping Potential of filter; summarized LPG and bottom oil; C5 content in LPG ≤ 3% (v/v)
Improve
achieve the expected separation providing no separation
Momentum Inertia Micro- solution. From May to October 2024 the average C4 modification effects based
C4 content in bottom oil < 0.5% (v/v); 2. Improve the
vortex Rectangular Float on pump operation and adaptability of debutanizer internals to unit load
precision and
and lighter components in the bottom oil was feedstock properties and product distribution while optimize product Tray 0.78wt% (pass rate 14.74%) and C5 and heavier adsorption bed desorption improving economy. quality.components in LPG before desulfurization was parameters.
2.31%v (pass rate 76.40%) severely affecting
product quality and downstream operation.
2. In actual production increasing the reflux ratio to
ensure top LPG indicators added load to gas-liquid
phases and increased tray pressure drop yet both
LPG and mixed naphtha still could not qualify
simultaneously. Prioritizing LPG qualification causes
C4 in light naphtha of the 1# diesel hydrocracking
unit to frequently exceed limits restricting economy
and affecting downstream production.
42 / 275Full content of 2025 Annual Report
1. Expected results: (1) Under furnace temperature of
600–750°C NOx in flue gas $\leq$ 40 mg/Nm3 (3%
Technical Exploration to NOx content in sulfur recovery flue gas currently O2 dry basis); target value: NOx $\leq$ 25 mg/Nm3;
Reduce NOx Emission exceeds new emission limits (100 mg/Nm3) set by the Scientific research project (2) Form a complete set of technologies with Meet new
Concentration in Flue Gas Ministry of Ecology and Environment effective Dec closure summary has been independent IP; (3) Train a group of sulfur environmental
of 2# Sulfur Recovery 31 2025 requiring modifications for environmental completed. engineering technical and management personnel; (4) regulations and
Combined Unit compliance. Contribute to national environmental protection; (5) reduce pollution.Apply for 1 invention patent and publish at least 1
journal paper.Promoting Purified Water (1) Improvement of stripped water reuse rate (current Economic benefit: 52.56 * 7.35 + 400 = RMB 7.8579
Reuse and Harmless 50-60%) to meet GB/T 26926-2011 requirement million. Net economic benefit: total investment of
Treatment of Electrodialysis ($\geq$ 60%). (2) Harmless treatment and cost Completed installation and RMB 2.5 million; investment of RMB 250000/year; Improve reuse
Wastewater for Acid Water reduction for high-concentration electrodialysis commissioning of thermodynamic steam 10-year economic benefit: 52.56 * 7.35 * 10 + 400 = rates and reduce Stripping Unit — Building a wastewater (COD 100000–200000 mg/L) traps. RMB 42.6316 million; annual net economic benefit: treatment costs. Benchmark for Water- containing MDEA and heat-stable salts. (3) Process 4263.16/10 - 25 = RMB 4.01316 million. Annual
Saving Enterprises adjustments for quality-based sewage treatment. ROI: 401.316/25 * 100% = 1605.26%.Development and
Application of the First Set Solving the issue of short burner operating cycles and Completed nitrogen
of Domestically Produced cooling water jacket leaks in the 2# oil residue content analysis of key Extend burner
Three-Phase Five-Channel hydrogen production unit using diverse feedstocks products under a 14%
The burner operating cycle reaches 150 days to meet
the requirements of multi-slurry operation. cycles and ensure
Multi-Slurry Combustion (EST residue catalytic slurry tars etc.) to ensure blending ratio of slurry bed stable operation.Technology long-term system stability. hydrogenated wax oil.
1. Feedstock-specific yield
Application of Directional and lab data collection
Cracking Technology for Summary and analysis of non-basic nitride cracking completed; 2. SNRU
Five-Membered Ring Non- (which reacts slower than basic nitrogen) to adsorbent operation tests at Meet the 41% heavy naphtha yield requirement to
Optimize
Basic Nitrogen in Heavy accumulate data and ensure that product nitrogen different ratios completed; provide feedstock for the startup of the 5# Reforming
processing routes
Slurry Bed Hydrogenated content meets standards during the processing of 3. Adjustment of stabilizer unit.and improve
Wax Oil slurry bed wax oil.yield.and reaction system
parameters completed.Research on Corrosion
Prevention and Control Addressing severe dew point corrosion in soot 1. Implemented HC When the soot blower is stopped the lift valve inner Reduce
Strategies for Soot Blower blower steam lines caused by high-sulfur flue gas reactor cut-off scheme and leak gas does not backflow eliminating flue gas dew
Steam System of High- backflow in the 2# VGO Catalytic Cracking Unit to collected LC reactor data point corrosion reducing the steam pipeline corrosion
maintenance
costs and extend
Sulfur Catalytic Flue Gas reduce maintenance costs and ensure stable for comparison; 2. rate extending the cycle and improving the soot
Waste Heat Boiler production. Identified existing issues. blowing effect.life.
43 / 275Full content of 2025 Annual Report
Practice of "Atomic Addressing over-temperature in the internal LOW 1. R1520S catalyst Scissors" Technology for ring of 1# and 2# slurry bed reactors to resolve high- reduction completed and The unit will not be affected by reactor over-
Prevent over-
Cracking Asphaltene load operation stability issues and extend operating put into use; 2. Reactor temperature ensuring long-cycle high-load and
temperature and
Flocculation and Sludge- inlet temperature reduced stable operation. extend operation
type Exothermic Runaway cycles beyond one year. to 31–33°C. cycles.Completed E-1211B heat
Long-cycle Operation 1) Managing R1520A reactor operating 18 months exchanger cut-out
Research for Carbon Three beyond performance guarantee; 2) Handling higher maintenance; quench oil 1. Long-cycle operation summary report; 2. Meet the
Optimize
Hydrogenation Reactor of feed flow and MAPD levels than design; 3) system is operating high-load long-cycle stable operation requirements
catalysts and
3# Ethylene Unit Researching operations at the end of catalyst life to normally; E-1260 of the 3# Ethylene unit.
increase
optimize MAPD compliance and propylene yield. maintenance deferred after propylene yield.assessment.Localization Research of Improving product competitiveness and reducing First trial production Reduce
2426H Additives for 1# costs by localizing slip and antiblock agents for completed June 16–18;
1. Save manual additive costs; 2. Save equipment
operating costs; 3. Reduce energy consumption investment and
LDPE Unit 2426H film-grade LDPE without changing product manufacturer currently during production. improve performance. conducting trials. efficiency.Traditional spring-loaded coal pulverizers have the
following drawbacks: 1. Utilizing a conical roller
sleeve and flat disc liner structure resulting in a small
grinding area and low efficiency; 2. The nozzle
structure adopts a common dynamic and static ring
Development and form and the internal annular sealed air duct and
Application of New Roller cylinder are severely worn due to uneven wind fields
Extend
Sleeves for Spring-Loaded leading to a short maintenance cycle; 3. The dynamic
1. Achieve efficient and stable operation of the coal maintenance
Coal Pulverizers and static rings are integrally cast with 50Mn2 and
pulverizer; 2. Publish one paper. cycles and reduce
can only be replaced entirely after erosion and wear costs.making maintenance inconvenient and costly; 4. The
base seal adopts a single-chamber vertical gap seal
with mediocre sealing performance which easily
causes air and powder leakage affecting the
workshop environment and causing energy waste.
1. Water/Acid
Adaptability Optimization Annual benefit of RMB 7.68 million (Calculated as:
Research for Burner System Addressing frequent flame-out vibration and
Commissioning: On July 30*8000*192-6000*8000*0.8 where steam output is Restore steam
collapse issues in burners to restore ultra-high 10 after the sea pipeline of of Gas-Fired Waste Heat 30t/h low-pressure syngas consumption is 6000m3/h
production
Boiler pressure steam production capacity.the 5# circulating water annual utilization hours are 8000 steam price is 192 capacity and
plant was cleared the RMB/t and syngas price is 0.8 RMB/m3). increase benefits.circulating water was put
44 / 275Full content of 2025 Annual Report
into use making the unit
ready for water
commissioning. On July
25 the acetic acid unit
began acid commissioning
2. Successful first material
feeding (Aug 18); 3.Reaching 80% load: On
September 12 the load of
the acetic acid unit was
raised to 80% producing
over 20000 tons of acetic
acid during this trial run.All product indicators met
or exceeded national
standard requirements
successfully
accomplishing the trial run
objectives; 4. Node-based
data collection performed.
45 / 275Full content of 2025 Annual Report
R&D personnel of the Company
Item 2025 2024 Change
Number of R&D personnel 3461 3842 -9.92%
(counts)
Proportion of R&D personnel 17.44% 20.14% -2.70%
Educational structure of R&D personnel
Bachelor’s Degree 2133 1986 7.40%
Master’s Degree 99 96 3.13%
Doctor’s Degree 8 5 60.00%
Below Bachelor’s degree 1221 1755 -30.43%
Composition of R&D personnel by ages
30 years old and below 305 408 -25.25%
30 to 40 years old 2012 2285 -11.95%
Above 40 years old 1144 1149 -0.44%
R&D investment of the Company
Item 2025 2024 Change
R&D investment (RMB) 4989246863.51 5101483285.60 -2.20%
Proportion of R&D investment in 1.62% 1.56% 0.06%
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 R Not applicable
Reasons for significant changes in the proportion of total R&D investment amount in operating revenue compared
with the previous year
□ Applicable R Not applicable
Reasons for the great changes of R&D investment capitalization rate and description of its rationality
□ Applicable R Not applicable
5. Cash flow
Unit: RMB
Year-on-year
Item 2025 2024 increase
(decrease)
Subtotal of cash inflow from operating activities 361132429689.07 384219250887.30 -6.01%
Subtotal of cash outflow from operating activities 315725962270.46 349610124282.42 -9.69%
Net cash flow from operating activities 45406467418.61 34609126604.88 31.20%
Subtotal of cash inflow from investment activities 4899234024.51 3993648376.29 22.68%
Subtotal of cash outflow from investment activities 47042815739.28 35249529611.29 33.46%
Net cash flow from investment activities -42143581714.77 -31255881235.00 -34.83%
46 / 275Full content of 2025 Annual Report
Subtotal of cash inflow from financing activities 146428439833.60 149236865336.65 -1.88%
Subtotal of cash outflow from financing activities 149709532580.81 150925150107.33 -0.81%
Net cash flow from financing activities -3281092747.21 -1688284770.68 -90.32%
Net increase in cash and cash equivalents -74834462.01 1456977237.93 -105.14%
Description of main influencing factors of significant year-on-year changes in relevant data
RApplicable □ Not applicable
The company's net cash flow from operating activities this year was RMB 45.406 billion with a relatively large
increase compared to the previous year mainly due to changes in net cash receipts from purchases and sales.The company's net cash flow from investing activities this year was -RMB 42.144 billion with a relatively large
decrease compared to the previous year mainly due to changes in expenditures on the acquisition and construction
of long-term assets.The company's net cash flow from financing activities this year was -RMB 3.281 billion with a relatively large
decrease compared to the previous year mainly due to changes in the company's borrowings.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:
RApplicable □ 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
RApplicable □ Not applicable
Unit: RMB
Item Proportion in Whether it is Amount total profit Cause description sustainable
Mainly investment income from disposal of
Investment income 717293296.00 21.80% No financial assets
Profit (loss) from fair -412236801.77 -12.53% Mainly due to changes in changes in paper
value change futures contracts. No
Asset impairment -219644919.91 -6.68%
Mainly due to the provision for inventory No
depreciation.Non-operating income 6845936.52 0.21%
Mainly due to carbon emission rights
revenue No
Mainly due to losses from damage to or
Non-operating expenses 57252161.46 1.74% No scrapping of non-current assets
Income from asset 25060957.68 0.76% Mainly due to the disposal of non-current
disposal assets No
Mainly due to preferential policies for value-
Other income 1256727225.03 38.20% added tax deduction for advanced Yes
manufacturing enterprises
Credit impairment loss 240862048.32 7.32% Mainly due to the provision for doubtful accounts receivable. No
47 / 275Full content of 2025 Annual Report
Ⅵ. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
At the end of 2025 At the beginning of 2025 Increase
Item Proportion in Proportion in (decrease) of
Amount total assets Amount total assets proportion
Monetary 13499669478.84 3.49% 14833384920.45 3.93% -0.44%
fund
Accounts 3169305362.31 0.82% 6821971706.36 1.81% -0.99%
receivable
Inventory 33576127180.92 8.68% 44566934616.59 11.80% -3.12%
Investment 9852682.60 0.00% 10124128.60 0.00% 0.00%
real estate
Long-term
equity 9764207212.23 2.53% 9516636321.17 2.52% 0.01%
investment
Fixed assets 259757528525.39 67.18% 232497113015.70 61.53% 5.65%
Construction 37854167659.20 9.79% 44036132096.28 11.65% -1.86%
in progress
Right-of-use 27062072.00 0.01% 176237821.55 0.05% -0.04%
assets
Short-term 50196656887.59 12.98% 44090969803.23 11.67% 1.31%
borrowings
Contract 4083450306.60 1.06% 5995580462.05 1.59% -0.53%
liabilities
Long-term 122459201307.70 31.67% 119518340862.41 31.63% 0.04%
borrowings
Lease 171624458.34 0.05% -0.05%
liabilities
Non-current
liabilities due 35466338269.58 9.17% 38322495216.94 10.14% -0.97%
within one
year
Overseas assets account for a relatively high proportion
□ Applicable R Not applicable
2. Assets and liabilities measured at fair value
RApplicable □ Not applicable
Unit: RMB
Amount at Profit and Accumulat
the loss from ed fair
Impairme Purchase Sales
changes in value nt accrued amount in amount in
Amount
Other by the end
Item beginning
of the fair value changes
in the the the changes of the
period for the recognized
current current current
period in equity period period period
period
48 / 275Full content of 2025 Annual Report
Financial assets
Trading
financial
assets(excl
uding
derivative
financial
assets)
Derivative
financial 47576668 278828805.17 2.69
assets
Total
financial 47576668 278828805.17 2.69
assets
Total 47576668 278828805.17 2.69
Financial 13039119 25495735
liabilities 39.76
6.99
Contents of other changes
Whether there are any significant changes in the measurement attributes of the Company's major assets during the
reporting period
□ Yes R No
3. Restrictions on rights of assets as of the end of the reporting period
Item Carrying amount at the end of 2025 (RMB) Reasons for restrictions
Letter of credit bank acceptance bill
Monetary fund 630671605.40 guarantees loans ETC deposits and funds
frozen for legal execution
Fixed assets 294762945671.06 Collateral for borrowings and letters of credit
Construction in progress 14296159065.39 Collateral for borrowings and letters of credit
Intangible assets 6136663087.37 Collateral for borrowings and letters of credit
Total 315826439429.22
Ⅶ. Analysis of investment
1. Overall situation
R Applicable □Not applicable
Investment amount during the reporting Investment amount in the same period of
period (RMB) the previous year (RMB) Change
9764207212.239516636321.172.60%
2. Significant equity investments acquired during the reporting period
49 / 275Full content of 2025 Annual Report
□ Applicable R Not applicable
3. Major ongoing non-equity investments during the reporting period
□ Applicable R Not applicable
4. Investment in financial assets
(1) Securities investment
□ Applicable R Not applicable
The Company had no securities investment during the reporting period.
(2) Investment in derivatives
RApplicable □ Not applicable
1) Derivative investments for hedging purposes during the reporting period
RApplicable □ Not applicable
Unit:RMB 10000
Gains or Cumulati Percentage of
Losses ve Sales Investments at
Type of Initial Changes Purchases the End of the
derivative Investm Beginning
from in Fair During the During Changes in the Ending Period to the
investment ent Balance Amount Fair Value
Value Reporting Reportin Balance Company's Net
During the Recogniz Period g Period Assets at the End
Period ed in of the Reporting Equity Period
Forward
foreign
exchange 42018.03 -9395.34 23158.3 0.53%
contracts
Paper futures -
contracts 2093.10 -20771.15 20771.15 -0.48%
Total 44111.13 -30166.49 2387.15 0.05%
Explanation
of accounting
policies and
specific
accounting
principles for
hedging
activities No
during the
reporting
period and
whether there
have been any
significant
changes
50 / 275Full content of 2025 Annual Report
compared to
the previous
reporting
period
Explanation
of actual
profit and loss
during the The Company's actual investment income during the reporting period was RMB -221.6592 million
reporting
period
Explanation
of hedging N/A
effectiveness
Sources of
funds for
derivatives self-owned funds
investment
(I) Risk Analysis of Commodity Futures Hedging Business
1. Risk of Abnormal Price Fluctuations: In theory the future market price and spot market price of various trading
varieties should converge during the delivery period. However under extreme and irrational market conditions there is
a possibility that these prices may fail to converge which could impact the Company’s hedging schemes or even result
in losses.
2. Liquidity Risk: If the amount of capital invested in future trading is excessive it may lead to capital liquidity risks
and actual losses may occur due to forced liquidation if margins are not supplemented in a timely manner. Additionally
future trading may face liquidity risks if transactions are difficult to execute due to inactive market trading.
3. Operational Risk: As future trading is highly professional and complex there is a possibility of unexpected losses
caused by deficiencies in information systems or internal control mechanisms.Risk analysis 4. Credit Risk: When price fluctuations are significantly unfavorable to a counterparty the counterparty may violate
and control contract provisions or cancel the contract leading to losses for the Company.measures for 5. Legal Risk: Changes in relevant legal systems or violations of legal systems by counterparties may result in the failure
derivative to execute contracts normally bringing losses to the Company.positions held (II) Risk Control Measures for Commodity Futures Hedging Business
during the
reporting 1. Matching Hedging with Operations: The Company matches its future hedging business with its operating activities to
period offset price fluctuation risks. Hedging activities are strictly limited to future varieties related to the raw materials or
(including but products required for the Company's business operations.not limited to 2. Capital Scale and Margin Control: The Company strictly controls the scale of capital used for hedging and plans the
market risk use of margins reasonably. Design principles and specific approval authorities for hedging schemes have been
liquidity risk established. Hedging activities are conducted solely for the purpose of avoiding commodity price risks and do not involve
credit risk speculation or arbitrage. The volume of hedging shall not exceed the actual physical transaction volume and the future
operational positions held shall not exceed the physical volume being hedged.risk and legal 3. Management Systems: In accordance with the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange
risk). and other relevant regulations the Company has formulated the Commodity Futures Hedging Management System to
manage future operations thereby minimizing operational risks caused by system imperfections or improper procedures.
4. IT Infrastructure: The Company has established compliant computer systems and related facilities to ensure the normal
operation of trading activities. In the event of a malfunction timely response measures are taken to mitigate losses.(III) Risk Analysis of Foreign Exchange Derivative Trading Business
1. Market Risk: If exchange rate or interest rate trends deviate significantly from the Company’s expectations the cost
incurred after locking in the rates may exceed the cost if the rates had not been locked resulting in potential losses.
2. Internal Control Risk: FX derivative trading is highly professional and complex and risks may arise from inadequate
internal control mechanisms.
3. Counterparty Default Risk: Delays in recovering accounts receivable from customers or postponements in payments
to suppliers may affect the Company’s cash flow causing the actual cash flow to mismatch the term or amount of the
51 / 275Full content of 2025 Annual Report
executed FX derivative transactions.
4. Collection Forecast Risk: The Company forecasts payments and collections based on purchase orders customer orders
and projected orders. During actual execution suppliers or customers may adjust their orders or forecasts leading to
inaccurate collection forecasts and risks of delayed delivery for executed FX derivative transactions.
5. Legal Risk: Changes in relevant laws or violations of legal systems by counterparties may cause contracts to fail to
execute normally resulting in losses for the Company.(IV) Risk Control Measures for FX Derivative Trading Business
1. Operational Principles: The Company has formulated the Foreign Exchange Derivative Trading Management System
which stipulates that the Company shall not engage in FX derivative trading for speculative purposes. All transactions
must be based on normal production and operations relying on specific business activities and aimed at avoiding and
preventing exchange rate or interest rate risks. The system clearly defines operational principles approval authorities
internal audit processes responsible departments/personnel information isolation measures internal risk reporting and
risk handling procedures.
2. Tiered Management: The Company’s Treasury Department and Audit Department have clear management positionings
and responsibilities with accountability assigned to specific individuals. Through tiered management the risk of
individual or single-department operations is eliminated fundamentally while the response speed to risks is improved
under effective risk control.
3. Institutional Cooperation: The Company carries out FX derivative trading with large commercial banks that possess
legal qualifications. It closely tracks relevant laws and regulations to mitigate potential legal risks.For invested
derivatives
the report
should detail
changes in
market prices
or fair value
of the
products
during the
reporting
period. The The Company account hedging investments at fair value and forward foreign exchange is determined based on prices
analysis of the provided or obtained by banks and other pricing service institutions. The Company conducts fair value measurement and
fair value of confirmation every month; the transaction price of futures is at fair value.derivatives
should
disclose the
specific
methods used
and the
setting of
relevant
assumptions
and
parameters.Litigation
status (if N/A
applicable)
Date of Board
Announceme
nt Disclosure April 25 2025
for
Derivatives
52 / 275Full content of 2025 Annual Report
Investment
Approval (if
any)
Date of
General
Meeting of
Shareholders
Announceme
nt Disclosure May 17 2025
for
Derivatives
Investment
Approval (if
any)
2) Derivative investments for speculative purposes during the reporting period
□ Applicable R Not applicable
The Company did not conduct derivative investment for speculative purposes during the reporting period.VIII. Sales of Major Assets and Equities
1. Sales of major assets
□ Applicable R Not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equities
R Applicable □Not applicable
53 / 275Full content of 2025 Annual Report
Net Profit
Contribute Proportio Whether it
d to the n of Net was
Listed Profit implemente
Transac Company Impact Contribut Has all
d as
Date tion by the of the ed to the
Pricing Whether if the equity planned; if
Equity of Price Equity Sale on Listed
Principles this was a Relationship involved not the Disclosure Disclosure
Counterparty Sold for the Related- with the sales (RMB from the the Company been
reasons and Date Index
10000) Beginning Compa by the
Equity Party Counterparty
Sale Transaction transferr
measures
of the ny Equity ed taken by
Period to Sale to the
the Sale Total Net company
Date (RMB Profit should be
10000) explained.
http://www.cninfo.com.cn/new/discl
osure/detail
Rongshe plate=szse
ng Dece More Asset &orgId=990
Rongsheng Energy Focused Valuation 0015502&st
Holdings (Zhoush
mber
26 50824.1 -161.38 Compan 1.00% (Asset- Yes
Controlling Yes Yes December 9
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54 / 275Full content of 2025 Annual Report
IX. Analysis of Main Holding and Joint-stock Companies
Main subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit
55 / 275Full content of 2025 Annual Report
Unit: RMB
Company
Company name type Main business Registered capital Total assets Net assets Operating income Operating profit Net profit
Zhejiang
Petroleum & Production sales storage
Chemical Co. Subsidiary and transportation of RMB55800000000
29441841.5710029731.7623759453.70580429.87530819.82
Ltd. petroleum products etc.Ningbo Zhongjin Production and sales of
Petrochemical Subsidiary chemical products and RMB6000000000 2858125.03 430411.82 2004221.69 -155615.81 -131697.16
Co. Ltd. petroleum products
Dalian Yisheng Project investment
Investment Co. Subsidiary domestic trade import and RMB 2018000000 1512590.96 732949.99 2210089.06 -28861.44 -19362.87
Ltd. export of goods
Yisheng Dahua
Petrochemical Production and sales of PTA Subsidiary RMB2456450000 1345023.63 565474.71 2210089.06 -26315.05 -16805.71
Co. Ltd. and polyester bottle chips
Zhejiang Yisheng
New Materials Subsidiary Production and sales of PTA RMB3000000000 1047655.62 144866.06 2823988.65 -42738.59 -33159.57
Co. Ltd.Zhejiang Yisheng Joint-
Petrochemical stock Production and sales of PTA USD 514447100 2018111.45 919834.21 1211077.21 -1567.34 389.69
Co. Ltd. company and PIA
Hainan Yisheng Joint-
Petrochemical stock Production and sales of PTA RMB4580000000 2039841.36 682942.87 2547439.62 -8529.35 -5929.06
Co. Ltd. company and polyester bottle chips
Zhejiang
Shengyuan Production and sales of
Chemical Fiber Subsidiary polyester chips and RMB2000000000
879442.00211061.94691925.57-4046.75-1310.72
Co. Ltd. polyester filaments
56 / 275Full content of 2025 Annual Report
Acquisition and disposal of subsidiaries during the reporting period
RApplicable □ Not applicable
Acquisition and disposal methods Impact on overall production
Company name during the reporting period operation and performance
Zhejiang Shenghui New Materials Co.Ltd. New establishment No significant impact
Zhejiang Petrochemical New Materials
(Zhoushan) Co. Ltd. New establishment No significant impact
Zhejiang Rongshen New Materials Co.Ltd. Industrial and commercial deregistration No significant impact
Zhejiang Shengcheng New Materials Co.Ltd. Industrial and commercial deregistration No significant impact
Zhejiang Huiyu New Materials Co. Ltd. Industrial and commercial deregistration No significant impact
Rongsheng Energy (Zhoushan) Co. Ltd. Share sales No significant impact
Description of major holding companies and joint-stock companies
(1) Zhejiang Petroleum & Chemical Co. Ltd.
Zhejiang Petroleum & Chemical Co. Ltd. is the implementation entity of the Company's 40 million tons/year
refining and chemical integration project primarily engaged in the production sales storage and transportation of
petroleum products. With Li Shuirong as its legal representative and a registered capital of RMB 55800 million it
is a holding subsidiary of the Company. As of the end of 2025 the company had total assets of RMB 294418.42
million and net assets of RMB 100297.32 million. In 2025 it achieved an operating revenue of RMB 237594.54
million and a net profit of RMB 5308.20 million.
(2) Ningbo Zhongjin Petrochemical Co. Ltd.
Ningbo Zhongjin Petrochemical Co. Ltd. is primarily engaged in the storage of chemical products as well as
the wholesale and retail of chemical products and petroleum products (excluding hazardous chemicals). With Li
Shuirong as its legal representative and a registered capital of RMB 6000 million it is a wholly-owned subsidiary
of the Company. As of the end of 2025 the company had total assets of RMB 28581.25 million and net assets of
RMB 4304.12 million. In 2025 it achieved an operating revenue of RMB 20042.22 million and a net profit of
RMB -1316.97 million.
(3) Dalian Yisheng Investment Co. Ltd.
Dalian Yisheng Investment Co. Ltd. is primarily engaged in industrial investment domestic trade and the
import and export of goods. With Li Shuirong as its legal representative and a registered capital of RMB 2018
million the Company holds 70% of its equity. As of the end of 2025 the company had total assets of RMB
15125.91 million and net assets of RMB 7329.50 million. In 2025 it achieved an operating revenue of RMB
22100.89 million and a net profit of RMB -193.63 million.
(4) Yisheng Dahua Petrochemical Co. Ltd.
Yisheng Dahua Petrochemical Co. Ltd. is primarily engaged in the production and sales of PTA and polyester
bottle chips as well as the import and export of goods and domestic trade. With Li Shuirong as its legal
representative and a registered capital of RMB 2456.45 million. As of the end of 2025 the company had total assets
of RMB 13450.24 million and net assets of RMB 5654.75 million. In 2025 it achieved an operating revenue of
RMB 22100.89 million and a net profit of RMB -168.06 million.
(5) Zhejiang Yisheng New Materials Co. Ltd.
Zhejiang Yisheng New Materials Co. Ltd. is primarily engaged in the production and sales of PTA. With Xu
Baoyue as its legal representative and a registered capital of RMB 3000 million Ningbo Zhongjin Petrochemical
57 / 275Full content of 2025 Annual Report
Co. Ltd. holds 51% of its equity. As of the end of 2025 the company had total assets of RMB 10476.56 million
and net assets of RMB 1448.66 million. In 2025 it achieved an operating revenue of RMB 28239.89 million and
a net profit of RMB -331.60 million.
(6) Zhejiang Yisheng Petrochemical Co. Ltd.
Zhejiang Yisheng Petrochemical Co. Ltd. is primarily engaged in the production and sales of PTA and PIA.With Fang Xianshui as its legal representative and a registered capital of USD 514.4471 million the Company holds
a total of 30% of its equity. As of the end of 2025 the company had total assets of RMB 20181.11 million and net
assets of RMB 9198.34 million. In 2025 it achieved an operating revenue of RMB 12110.77 million and a net
profit of RMB 3.90 million.
(7) Hainan Yisheng Petrochemical Co. Ltd.
Hainan Yisheng Petrochemical Co. Ltd. is an associate of Yisheng Investment (a holding subsidiary of the
Company). It is primarily engaged in the production and sales of PTA and polyester bottle chips and import/export
business. With Fang Xianshui as its legal representative and a registered capital of RMB 4580 million Yisheng
Investment holds 50% of its equity. As of the end of 2025 the company had total assets of RMB 20398.41 million
and net assets of RMB 6829.43 million. In 2025 it achieved an operating revenue of RMB 25474.40 million and
a net profit of RMB -59.29 million.
(8) Zhejiang Shengyuan Chemical Fiber Co. Ltd.
Zhejiang Shengyuan Chemical Fiber Co. Ltd. is the implementation entity of the Company's multi-functional
fiber technical transformation project primarily engaged in the production and sales of polyester chips and polyester
filaments. With Li Shuirong as its legal representative and a registered capital of RMB 2000 million it is a wholly-
owned subsidiary of the Company. As of the end of 2025 the company had total assets of RMB 8794.42 million
and net assets of RMB 2110.62 million. In 2025 it achieved an operating revenue of RMB 6919.26 million and a
net profit of RMB -13.11 million.X. Structured Entities Controlled by the Company
□ Applicable R Not applicable
XI. Prospect for the Company’s Future Development
The year of 2026 marks the commencement year of the "15th Five-Year Plan." The general approach for the
Company's work is: to fully implement the New Development Philosophy act upon the spirit of the Central
Economic Work Conference take "innovation-driven growth and efficiency enhancement" as the core of
development and strengthen the strategic mainlines of "technological leadership green transformation and global
expansion." We will continue to build a high-end intelligent and green industrial chain system accelerating our
development into a world-class green petrochemical enterprise. For the full year we will strive to achieve steady
growth in operating revenue continuous improvement in profit levels and zero major safety production accidents.The following key areas will be our main focus:
(I) Business plan
1. Strengthening Strategic Leadership and Mapping the Blueprint for Long-term Development
Standing at a new stage of development the Company will strengthen forward-looking strategic analysis and
scientifically plan the development path for the "15th Five-Year Plan" ensuring that the Company's development
direction resonates with national strategies. We will tighten the review and oversight of major investment projects
to ensure that under-construction projects such as Jintang New Materials and other high-end new material initiatives
align with the Company's long-term strategic orientation strictly controlling investment risks and improving capital
58 / 275Full content of 2025 Annual Report
allocation efficiency. We will continue to deepen mutually beneficial cooperation with international strategic
partners like Saudi Aramco actively track investment and M&A opportunities for high-quality overseas projects
and steadily advance the layout of international production capacity to open new spaces for the Company's long-
term growth.
2. Driving Innovative Breakthroughs and Cultivating Core Growth Engines
The Company will continue to increase the allocation of resources toward technological innovation reviewing
and supporting annual R&D investment plans to ensure that investment intensity remains at an industry-leading
position. We will focus on key technological breakthroughs in frontier fields such as green and low-carbon
technologies clean energy and high-performance materials promoting the industrialization of innovative
achievements from the laboratory. We will accelerate the construction of platforms such as innovation centers
improve the mechanism for transforming scientific and technological achievements and provide solid support for
the Company to cultivate new quality productive forces. At the same time we will supervise the management to
deepen digital transformation empowering full-chain efficiency enhancement through intelligence.
3. Optimizing Capital Allocation and Enhancing Resource Integration Efficiency
The Company will fully leverage the role of the capital market as a platform coordinating various tools such
as equity and debt financing to optimize the capital structure and reduce comprehensive financing costs. We will
strengthen investor relations management to enhance the Company's image and influence in the capital market. We
will drive the functional upgrade of the Singapore trading platform to build a global network for raw material
procurement and product sales improving our international resource integration capabilities. We will prudently
analyze market fluctuations in exchange rates and interest rates utilizing financial derivatives to lock in risks and
safeguard the Company's financial stability.
4. Strictly Upholding Safety and Environmental Bottom Lines Promoting Green and Low-Carbon
Development
The Company will deeply implement the "Dual Carbon" strategy integrating sustainability concepts into our
corporate strategy and daily operations. We will pursue continuous improvement against international advanced
standards striving to maintain our MSCI ESG rating at a leading level in China. We will urge the management to
strictly fulfill their primary responsibility for production safety and deepen the construction of dual prevention
mechanisms (risk control and hazard rectification). By safeguarding high-quality development with high-level
safety we will support the R&D and application of environmental technologies driving the Company's transition
toward a green low-carbon model and setting a benchmark for green development in the industry.
5. Perfecting the Governance System Fortifying the Barrier for Compliance and Risk Control
The Company will continue to refine its modern corporate governance system promoting the efficient and
standardized operation of the "Three Meetings and One Management" (General Meeting of Shareholders the Board
Meeting Audit Committee Meeting and Senior Management) to ensure scientific decision-making strong
execution and effective supervision. In accordance with the requirements of the new Company Law we will further
strengthen the functions of the Audit Committee building a comprehensive authoritative and efficient supervision
system. We will improve risk monitoring and early warning mechanisms focusing on preventing market risks
liquidity risks and compliance risks to hold the bottom line against major risks. We will advance the construction
of a compliance management system to ensure the Company's steady and sustained growth in both domestic and
international markets.
6. Deepening the Talent Foundation Stimulating Endogenous Growth Momentum
The Company will place its talent strategy in a more prominent position promoting the refinement of a "Five-
in-One" talent evaluation system and increasing efforts to attract and cultivate international and high-end
professional talent. We will optimize compensation and incentive mechanisms and strengthen performance
orientation ensuring that those who strive are rewarded with key positions. We will vigorously promote the
59 / 275Full content of 2025 Annual Report
corporate spirit of "Integrity in Business Pursuit of Excellence" advance corporate culture construction and
enhance team cohesion. We will improve the mechanism for the promotion and demotion of cadres focusing on
the selection and appointment of young leaders to reserve core strength for corporate longevity.(II) Potential risks
1. Risk of raw material and product price fluctuations
As the Company operates within the crude oil industrial chain its product costs are mainly composed of
upstream raw material costs. Therefore the fluctuation of crude oil prices will cause price fluctuations for products
across the industrial chain. The Company's main products are oil products aromatic hydrocarbons olefins and
downstream chemicals 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 the Company's performance. The Company's procurement production and sales teams
possess rich experience in procurement production sales hedging and logistics. In coordination with the marketing
department the Company will closely monitor market changes and adhere to the combination of strategic
procurement and opportunistic procurement. Furthermore the Company will flexibly adjust the product structure
and regulate the production load according to market demand flexibly arrange long-term and short-term contracts
and strengthen sales management to mitigate the adverse impacts brought by raw material fluctuations.
2. Risk of foreign exchange rate fluctuations
The Company engages in overseas procurement and sales. As the business scale continues to expand the sales
and procurement amounts denominated in foreign currencies have increased accordingly. Meanwhile the foreign
exchange market is subject to various complex factors affecting exchange rate trends presenting significant
uncertainty. If the RMB exchange rate fluctuates sharply in the future it may affect the Company's operating
performance. Based on the characteristics of its foreign-related business and adhering to the principles of legality
prudence safety and effectiveness the Company will carry out foreign exchange derivative trading business relying
on specific operational activities 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 "reducing
oil and increasing chemicals" strategy in recent years some downstream basic chemical raw materials and general
chemical products exhibit certain homogenization. Supported by a complete and refined industrial chain platform
the Company will remain at the left end of the industry cost curve in the future thereby occupying a favorable
position in market competition. On the other hand many products within the new materials projects planned by the
Company have limited domestic production capacity or rely entirely on imports. These are expected to form
differentiated competitive advantages and bring excess returns to the Company.
4. Risk of project capital expenditure
The petrochemical industry is a capital-intensive industry characterized by large investment scales and long
construction periods. Continuous large-scale capital investments may elevate the asset-liability ratio and trigger
phased cash flow risks. In addition if the industry is at the bottom of its cycle and downstream demand is sluggish
the return on project investment may fall short of expectations. Currently the Company focuses on the layout of
high-performance resins high-end new materials and the Jintang new materials project. The Company will continue
to strictly control the pace of project investment and construction adjust project contents closely following market
dynamics maintain a reasonable asset-liability ratio and actively advance international cooperation opportunities
to build a more competitive refining and chemical integration platform.
60 / 275Full content of 2025 Annual Report
Ⅻ. Reception of research communication interview and other activities during the
reporting period
RApplicable □ Not applicable
Reception Ways of Reception Main contents discussed Basic information
Date place reception Object type object and materials provided index of research
Visit Visit
http://www.cninfo.com.cn http://www.cninfo.com.Online /new/disclosure/detailpla cn/new/disclosure/detail
May 7 communicatio te=szse&orgId=99000155 plate=szse&orgId=990
2025 n on network Individual Investor 02&stockCode=002493& 0015502&stockCode=0
platform announcementId=122349 02493&announcementI3210&announcementTim d=1223493210&announ
"Investor e=2025-05-08%2015:12 cementTime=2025-05-
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p5w.net http://www.cninfo.com.cn http://www.cninfo.com.Online /new/disclosure/detailpla cn/new/disclosure/detail
August communicatio te=szse&orgId=99000155 plate=szse&orgId=990
26 2025 n on network Individual Investor 02&stockCode=002493& 0015502&stockCode=0
platform announcementId=122459 02493&announcementI0266&announcementTim d=1224590266&announ
e=2025-08-27%2017:04 cementTime=2025-08-
for details 27%2017:04 for details
XIII. Formulation and Implementation of Market Value Management System and Valuation
Promotion Plan
Whether the company has formulated a market value management system.RYes □No
Whether the company has disclosed the valuation promotion plan.□ Yes R 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 Market Value Management System was reviewed and
approved at the 22nd Meeting of the Sixth Board of Directors.During the reporting period the Company strictly followed the requirements of the Market Value Management
System taking information disclosure as the core investor relations as the link shareholder returns as the goal and
capital operation as the key to systematically promote market value management continuously standardize market
value management behavior and constantly improve investment value and shareholder return levels providing a
solid guarantee for the company's high-quality and sustainable development.
61 / 275Full content of 2025 Annual Report
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".RYes □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
"vigorously improving the quality and investment value of listed companies taking more powerful and effective
measures to focus on stabilizing the market and confidence" pointed out at the executive meeting of the State
Council on January 22 2024 and to earnestly protect the interests of all investors the Company has formulated the
action plan of "Double Improvement of Quality and Return" based on its confidence in the future development
prospects and the recognition of the Company's stock value which was disclosed 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 leading global petrochemical enterprises. In 2026 it was ranked 5th in
the "Chemicals 25" list of the world's most valuable chemical brands by Brand Finance a well-known UK brand
valuation consultancy. It also ranked 6th in the "Billion-Dollar Club" of global chemical companies by the US
Chemical Week and 8th in the ICIS Top 100 Chemical Companies. The Company firmly implements the "vertical
and horizontal strategy." It has established seven major production bases in the Bohai Economic Rim the Yangtze
River Delta Economic Circle and the Hainan Belt and Road Economic Circle forging five major industrial chains:
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 polyolefins in Asia
possessing the world's largest production capacities for chemicals such as PX and PTA.On the basis of the existing complete industrial chain the Company is actively deploying product projects
related to new energy and new materials with the proportion of related products continuously increasing.Meanwhile the Company actively carries out its global layout. In 2023 the Company introduced Saudi Aramco as
a strategic investor; currently Saudi Aramco holds approximately 10% of the Company's shares through its wholly-
owned subsidiary. At the beginning of 2024 the Company signed a Memorandum of Understanding with Saudi
Aramco. Since the signing of the memorandum Rongsheng Petrochemical and Saudi Aramco have actively
advanced cooperation matters successively signing documents such as the Cooperation Framework Agreement the
Framework Agreement for Joint Development Agreement and the Development Framework Agreement. At present
both parties are engaging in further negotiations on the specific terms of joint investment 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 international technological frontier and continuously launches new
technologies and products in clean energy high-end materials and green development. Adhering to the dual-driven
R&D model of "independent innovation" and "open cooperation" the Company has built first-class R&D platforms
such as a high-tech R&D center an academician and expert workstation an enterprise technology center and a
post-doctoral scientific research workstation. Concurrently it actively engages in external technical exchanges and
discussions takes the initiative to promote industry-university-research integrated cooperation and consolidates
multiple resources from universities society and enterprises. Together they enhance scientific research levels
promote technical progress and jointly create an open healthy and mutually beneficial innovative development
system.
3. Attach importance to shareholders' returns and share development achievements
While focusing on its own development the Company also attaches great importance to shareholder returns.
62 / 275Full content of 2025 Annual Report
To improve and perfect the Company's shareholder return mechanism and increase the transparency and operability
of profit distribution policies the Company has formulated and continuously updated the Shareholder Return Plan
for the Next Three Years since its listing in accordance with the Company Law of the People's Republic of China
the Regulatory Guidelines for Listed Companies No. 3 - Cash Dividends of Listed Companies other laws
regulations normative documents and the Articles of Association. Up to now the Company has paid cash dividends
15 times cumulatively realizing a total cash dividend amount of RMB 9.4 billion. In the future the Company will
continue to coordinate the dynamic balance among corporate development performance growth and shareholder
returns according to its development stage striving to realize a "long-term stable and sustainable" shareholder
value return mechanism.
4. Carry out repurchase by increasing holdings to boost market confidence
Based on confidence in the Company's future development prospects and recognition of its long-term value
and to safeguard the interests of the vast number of investors especially small and medium-sized investors enhance
investor confidence promote the reasonable return of the Company's stock price to its long-term intrinsic value
and foster the stable and sustainable development of the Company the Company and its controlling shareholder
Rongsheng Holding have actively carried out share repurchase and holding increase plans.Since the Company first repurchased shares on March 29 2022 it has implemented three phases of share
repurchase schemes all of which have been completed. The Company has cumulatively repurchased 553232858
shares accounting for 5.4637% of the Company's current total share capital with a total transaction amount of RMB
6987904924.02 (excluding transaction fees). The Company held the 23rd Meeting of the 6th Board of Directors
on April 24 2025 and the 2024 Annual General Meeting on May 16 2025 which reviewed and approved the
Proposal on the Cancellation of Partially Repurchased Shares the Reduction of Registered Capital and the
Amendment of the "Articles of Association". It was agreed to cancel the shares from the first phase of repurchase
and reduce the registered capital accordingly. The cancellation procedures for the aforementioned shares were
completed at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited on July 18
2025. The details are as follows:
Number of shares Amount to be Repurchase Repurchase period repurchased (shares) repurchased (RMB 100
Repurchased amount
million) (RMB)
Phase I (cancelled) 2022.3.29-2022.8.2 136082746 10-20 1998203937.31
Phase II 2022.8.18-2023.7.27 147862706 10-20 1989986431.34
Phase III 2023.8.28-2024.8.19 269287406 15-30 2999714555.37
Total 553232858 - 6987904924.02
The Company's controlling shareholder Rongsheng Holding implemented three holding increase plans from
January 22 2024 to September 30 2025 all of which have been completed. It cumulatively increased its holdings
by 289064301 shares accounting for 2.89% of the Company's current total share capital with a total increase
amount of approximately RMB 2705.4922 million. The details are as follows:
Share
increase items Share increase period
Number of shares Amount to be increased Amount increased
increased (shares) (RMB 100 million) (RMB 10000)
Phase I 2024.1.22-2024.7.18 115530037 10-20 118805.82
Phase II 2024.8.21-2025.2.20 56892217 5-10 50487.35
Phase III 2025.4.8-2025.9.30 116642047 10-20 101256.05
Total 289064301 - 270549.22
5. Standardize corporate governance and deliver corporate value
The Company strictly complies with the requirements of relevant laws and regulations continuously improves
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its corporate governance structure establishes and enhances its internal control system regulates company
operations strives to achieve full coverage of institutions and promotes the mature construction of the internal
control system. The Company has switched its corporate governance structure of "Three Boards and One
Management"—namely the General Meeting of Shareholders the Board of Directors the Board of Supervisors and
Senior Management to General Meeting of Shareholders the Board of Directors the Audit Committee and Senior
Management. It possesses independent business and operational autonomy operating independently in terms of
business assets personnel institutions and finance.Strictly adhering to the principles of "truthfulness accuracy completeness timeliness and fairness" the
Company continuously improves the effectiveness and transparency of information disclosure. Guided by investor
needs it consistently presents operational information to investors across multiple levels angles and dimensions.Concurrently the Company continuously expands the breadth and depth of investor communication improving
open fair transparent and multi-dimensional communication channels enabling investors to understand the
Company's core value more intuitively and comprehensively thereby enhancing their confidence in the Company.In the future the Company will continue to focus on its core business adhere to the investor-oriented principle
and persistently practice the "Double Improvement of Quality and Return" to realize sustainable and healthy
development. It will strive to make positive contributions to stabilizing the market and boosting confidence through
standardized corporate governance and proactive investor returns.
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Section IV Corporate Governance Environment and Society
I. Basic Information of Our Corporate Governance
During the reporting period the Company strictly followed the requirements of the Company Law the
Securities Law the Code of 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 the China Securities Regulatory Commission. We
constantly improved the corporate governance structure established a sound internal control system and regulated
operational processes. Currently the actual situation of our corporate governance meets the requirements of
normative documents concerning the governance of listed companies.(I) Shareholders and the General Meeting of Shareholders
During the reporting period the Company standardized the convening holding and voting procedures of the
General Meeting of Shareholders in strict accordance with the Company Law the Rules for the General Meetings
of Shareholders of Listed Companies the Articles of Association and the Rules of Procedure of the General
Meeting of Shareholders. This ensures that all shareholders especially small and medium-sized shareholders enjoy
equal status and fully exercise their rights. Meanwhile according to relevant laws regulations and the Articles of
Association matters that should be voted on by the General Meeting of Shareholders were submitted for deliberation
only after corresponding authorized approvals. There were no instances of approval beyond authority or
implementation prior to deliberation. During the reporting period the Company held 5 General Meetings of
Shareholders which were convened by the Board of Directors and lawyers were engaged to witness the legality
and compliance of the meetings on site.(II) The relationship between the controlling shareholders and the listed company
The Company and its controlling shareholders are completely separated in terms of business personnel assets
institutions and finances. The Company possesses independent and complete capability for autonomous operations.The controlling shareholders strictly regulate their own behaviors fulfill corresponding obligations and do not
directly or indirectly interfere with the Company's decision-making and operational activities beyond the General
Meeting of Shareholders. The Company has independent business and operational autonomy operating
independently from the controlling shareholders in all aforementioned aspects and its Board of Directors and
internal organizations 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
the controlling shareholders do not appropriate the Company’s funds and the Company provides no guarantees for
the controlling shareholders.(III) The Directors and the Board of Directors
In strict accordance with the Company Law the Articles of Association and other regulations the Company
held 7 Board meetings during the reporting period. The convening holding and voting procedures of these 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 Directors. All Directors worked diligently and dutifully in accordance
with the Rules of Procedure of the Board of Directors earnestly attended Board meetings actively participated in
relevant training and studied applicable laws and regulations. Independent Directors independently performed their
duties to safeguard the overall interests of the Company paying special attention to protecting the legitimate rights
and interests of minority shareholders and deliberated on important and major matters through special meetings of
independent Directors. The special committees under the Board of Directors performed their respective duties and
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gave full play to their professional functions greatly improving the operational efficiency of the Board.(IV) Performance Evaluation and Incentive/Constraint Mechanisms
The Company is continuously improving its fair and transparent performance evaluation standards and
incentive/constraint mechanisms for Directors supervisors and managers. The appointment of the Company's
Senior Management is open transparent and complies with laws and regulations.(V) Stakeholders
The Company fully respects and safeguards the legitimate rights and interests of stakeholders such as
shareholders customers employees suppliers and partners. The Company actively strengthens communication and
cooperation with all parties to balance their interests while maximizing enterprise profits jointly promoting the
sustainable and healthy development of the Company.(VI) Information disclosure management
During the reporting period strictly following the documents of the Shenzhen Stock Exchange and other
relevant laws and regulations the Company strengthened the management of information disclosure affairs and
actively fulfilled its disclosure obligations. The Company designated Securities Times China Securities Journal
Shanghai Securities News Securities Daily and CNINFO website (http://www.cninfo.com.cn) as its official media
for information disclosure ensuring that all investors acquire company information fairly. Additionally the
Company established smooth communication channels setting up a dedicated investor hotline and communicating
with investors through the Investor Relations Interactive Platform of the Shenzhen Stock Exchange.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 R 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.(I) 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.(II) 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
Management are appointed in accordance with the applicable laws regulations normative documents and the
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Articles of Association. They work full-time in the Company and receive remuneration and so do the financial
personnel.(III) 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.(IV) Organizational independence
The Company has established effective bodies such as the General Meeting of Shareholders the Board of
Directors 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.(V) 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 R Not applicable
IV. Basic Information of the Board Members and Senior Management
1. Profile
Start Date of End Number of Number of
Name Gender Age Title Status Tenure Date Shares Held at Shares Held the Beginning at the End
Li Shuirong Male 70 Chairman Incumbent April 8 2010 643275000 643275000
Alharbi Mitib November 13
Awadh M Male 49 Director Incumbent 2023
Director Incumbent May 26 2015
Xiang
Jiongjiong Male 43 General
Manager Incumbent April 15 2017
Li Yongqing Male 62 Director Incumbent April 8 2010 96525000 96525000
Li Cai'e Female 63 Director Incumbent April 8 2010
Yu Fengdi Female 58 Director Incumbent April 8 2010
Shao Yiping Female 63 Independe Incumbent May 19 2021
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nt
Director
Independe
Yao Zheng Male 69 nt Incumbent May 16 2025
Director
Independe
Yu Yi Male 61 nt Incumbent May 16 2025
Director
Independe
Yan Jianmiao Male 61 nt Non- May 10 2019 May 16
Director incumbent 2025
Zheng IndependeMale 48 nt Non- May 10 2019 May 16 Xiaodong Director incumbent 2025
Deputy
Zhou Xianhe Male 51 General Incumbent October 25
Manager 2022
Secretary
Quan Weiying Female 48 of the Board of Incumbent April 29 2010
Directors
Chief
Wang Yafang Female 47 Financial Incumbent May 10 2019
Officer
Total -- -- -- -- -- -- 739800000 739800000
Whether there was any resignation of Directors and supervisors and dismissal of officers in the reporting period
□ Yes R No
Personnel Change of Directors Supervisors and Senior Management
RApplicable □ Not applicable
2. Holding of Post
The background main work experience and current main duties of Directors and Senior Management of the
Company
Name Position Type of change Date Reason for change
Yan Jianmiao Independent Director Term expiration May 16 2025 Board transition
Zheng Xiaodong Independent Director Term expiration May 16 2025 Board transition
Yao Zheng Independent Director Elected May 16 2025 Board transition
Yu Yi Independent Director Elected May 16 2025 Board transition
1. Main work experience of current Directors:
Mr. Li Shuirong: Senior Economist university degree Chinese nationality. He 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 serves as President of China Township Enterprises Association Invited
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Vice President of China National Textile and Apparel Council and Vice President of China Chemical Fibers
Association. He is currently Chairman of Rongsheng Petrochemical Co. Ltd. and 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: Professor-level Senior Economist Outstanding Entrepreneur of Zhejiang Province. He
is 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
Vice President of the General Association of Zhejiang Entrepreneurs. He has been listed in ICIS "Top 40 Most
Influential Chemical Leaders Worldwide" Forbes "Most Influential Chinese Elites" 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 Vice
Chairman of Zhejiang Rongsheng Holding Group Co. Ltd. and Director of Rongsheng Petrochemical Co. Ltd.Ms. Li Cai'e: Senior Economist Bachelor's degree Chinese nationality. She was awarded honorary titles such
as Model Worker of Xiaoshan District in 2008 and Advanced Accounting Worker of Xiaoshan District Hangzhou.She previously served as Deputy General Manager of Rongsheng Chemical Fiber Group Co. Ltd. and Chief
Financial Officer of Rongsheng Petrochemical Co. Ltd. She is currently Vice President of Zhejiang Rongsheng
Holding Group Co. Ltd. Director of Rongsheng Petrochemical Co. Ltd. Director of Zhejiang Petroleum &
Chemical Co. Ltd. and Director of Ningbo United Group Co. Ltd.Ms. Yu Fengdi: College degree. She was awarded the title of Model Worker of Hangzhou City. She previously
served as a technician of the Production and Technology Department of Shaoxing County No. 1 Polyester Factory
Head of the Production and Technology Department of Shaoxing No. 1 Chemical Fiber Factory and Manager and
Assistant to the General Manager of the False Twisting Department of Rongsheng Chemical Fiber Group Co. Ltd.She is currently Vice President of Zhejiang Rongsheng Holding Group Co. Ltd. and Director of Rongsheng
Petrochemical Co. Ltd.Ms. Shao Yiping: Postgraduate degree professor of accounting master's supervisor. Her main research
interests are: accounting theory and accounting standards accounting professional judgment and earnings
management asset impairment accounting etc. with a focus on areas such as corporate litigation risk and
accounting conservatism. She previously served as Secretary of the Party General Branch and Vice Dean of the
School of Accounting of Zhejiang University of Finance and Economics Director of the Personnel Department of
Zhejiang University of Finance and Economics Member of the Party Committee of Zhejiang University of Finance
and Economics Secretary of the Party Committee and Chairman of the Labor Union of Dongfang College and
Member of the Zhejiang Accounting System Advisory Expert Committee. She is currently a professor of accounting
at Zhejiang University of Finance and Economics Executive Director of the Hangzhou Institute of Certified Public
Accountants and Independent Director of Rongsheng Petrochemical Co. Ltd. UE Furniture Co. Ltd. and
Zhongtian Service Co. Ltd.Mr. Yao Zheng: Male CPC member Master's degree professor and doctoral supervisor. He previously served
as lecturer and associate professor at the School of Management of Zhejiang University scientific research secretary
of the School of Management Deputy Director of the Institute of Enterprise Investment Director of the Department
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of Finance and Accounting Director of the Institute of Finance and Accounting and Director of the Capital Market
and Accounting Research Center. He is currently a professor and doctoral supervisor at the School of Management
of Zhejiang University Independent Director of Guangyu Group Co. Ltd. and Independent Director of Kings
Resources Group Co. Ltd.Mr. Yu Yi: Graduated with a Bachelor's degree in International Trade from the Department of World Economy
Shanghai University of Finance and Economics in July 1988 and obtained a Master's degree from the same
department in January 1991. He is currently a professor at the School of Economics of Zhejiang Gongshang
University a distinguished researcher of the Zheshang Research Institute a second-tier cultivation candidate of the
"151 Talent Project" in Zhejiang Province a young and middle-aged academic leader in Zhejiang Province and the
principal of "International Trade Practice" for national-level excellent courses and national-level excellent resource-
sharing courses. He is also a distinguished teacher of Zhejiang Gongshang University a consulting and decision-
making expert of the Management Committee of the Transformation and Upgrading Industry Fund of Zhejiang
Province and a consultant of the Hangzhou Import and Export Chamber of Commerce. To date he has published
over 100 papers in journals such as Chinese Social Science Digest World Economy Finance and Trade Economics
International Trade Issues Economic Theory and Business Management and Guangming Daily and has won the
National Foreign Trade and Economic Research Achievement Award issued by the Ministry of Commerce multiple
times.
2. Main work experience of current Senior Management personnel:
Mr Xiang Jiongjiong: Professor-level Senior Economist Outstanding Entrepreneur of Zhejiang Province. He
is 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
Vice President of the General Association of Zhejiang Entrepreneurs. He has been listed in ICIS "Top 40 Most
Influential Chemical Leaders Worldwide" Forbes "Most Influential Chinese Elites" 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 at Zhejiang Sci-Tech University. He is also a member of the National Chemical Fiber
Standardization Technical Committee. He is currently General Manager of Zhejiang Shengyuan Chemical Fiber
Co. Ltd.Ms. Quan Weiying: Bachelor's degree. She previously worked in the Investment Department and Finance
Department of Rongsheng Petrochemical Co. Ltd. and won the titles of "Excellent Secretary of the Board of
Directors" and "Top Secretary of the Board of Directors". She is currently Secretary of the Board of Directors of
Rongsheng Petrochemical Co. Ltd.Ms. Wang Yafang: Bachelor's degree Senior Accountant Certified Public Accountant. She previously served
as Deputy Manager Manager and Deputy Financial Director of the Financial Management Department of Zhejiang
Rongsheng Holding Group Co. Ltd. She is currently Chief Financial Officer of Rongsheng Petrochemical Co. Ltd.Situations where the controlling shareholder and actual controller simultaneously serve as the chairman and general
manager of the listed company
□Applicable RNot applicable
70 / 275Full content of 2025 Annual Report
Holding of Post at Shareholder Organization
RApplicable □ 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
Xiang Jiongjiong Rongsheng Holding Vice Chairman July 20 2023 No
Li Yongqing Rongsheng Holding Director June 20 2007 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
Office holding in
shareholding company None
Office holding in other companies
RApplicable □ Not applicable
71 / 275Full content of 2025 Annual Report
Positions held in other Start Date of End Date of Whether receiving
Name Name of other units units Tenure Tenure remuneration and allowance in other organizations
Li Shuirong Ningbo United Group Co. Ltd. Chairman Director May 18 2010 No
Li Shuirong Rongsheng (Shanxi) Carbon-based New Material Chairman General Co. Ltd. Manager August 1 2021
No
Chairman General
Li Shuirong Rongsheng (Shanxi) Coal Industry Co. Ltd. Manager August 1 2021
No
Zhejiang Dongjiang Green Petrochemical
Li Shuirong No Technology Innovation Center Co. Ltd. Vice Chairman April 1 2023
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 Chemicals Co. Ltd. Director October 1 2018 No
Li Shuirong Rongsheng New Materials (Taizhou) Co. Ltd. Chairman Manager May 1 2022 No
Li Shuirong Ningbo Hengyi Trading Co. Ltd. Director No
Li Shuirong Zhejiang Yisheng Petrochemical Co. Ltd. Director December 12 2002 No
Executive Director
Li Shuirong Ningbo Niluoshan New Energy Co. Ltd. No General Manager July 1 2018
Zhejiang Dingsheng Petrochemical Engineering
Li Shuirong Co. Ltd. Director October 1 2018
No
Zhejiang Xiaoshan Rural Commercial Bank Co.Li Shuirong No Ltd. Director August 1 2004
Hangzhou Binjiang Shengyuan Real Estate
Li Shuirong No Development Co. Ltd Supervisor
72 / 275Full content of 2025 Annual Report
Li Shuirong Hangzhou Kaiyuan Century Real Estate Co. Ltd. Director No
Hangzhou Yuanshenghui Enterprise Management
Li Shuirong No Co. Ltd. Director November 1 2023
Li Shuirong Ningbo Qingzhi Chemical Terminal Co. Ltd. Chairman No
VP of Fuels Business
Alharbi Mitib Awadh M Saudi Arabian Oil Company Management March 10 2024 Yes
Xiang Jiongjiong Rongsheng Energy Co. Ltd. Executive Director April 1 2021 No
Xiang Jiongjiong Rongsheng Energy (Zhoushan) Co. Ltd. Executive Director No Manager November 1 2023
Xiang Jiongjiong Rongsheng Energy Science and Technology No (Inner Mongolia) Co. Ltd. Chairman January 1 2024
Xiang Jiongjiong Rongsheng Coal Co. Ltd. Executive Director June 21 2018 No
Xiang Jiongjiong Dongzhan Shipping Co. Ltd. Director July 1 2018 No
Xiang Jiongjiong Zhejiang Petroleum & Chemical Co. Ltd. Director June 18 2015 No
Xiang Jiongjiong Rongsheng New Materials (Zhoushan) Co. Ltd. Chairman January 1 2022 No
Xiang Jiongjiong Rongsheng Chemical (Shanghai) Co. Ltd. Executive Director May 1 2021 No
Xiang Jiongjiong Rongsheng New Materials (Taizhou) Co. Ltd. Director December 01 2023 No
Xiang Jiongjiong Rongxiang Chemical Fiber Co. Ltd. Chairman No
Xiang Jiongjiong Zhejiang Yongsheng Technology Co. Ltd. Director No
Xiang Jiongjiong Rongsheng International Trading Co. Ltd. Executive Director February 1 2016 No
Rongsheng International Trading (Hainan) Co.Xiang Jiongjiong Ltd. Executive Director August 1 2020
No
Xiang Jiongjiong Zhejiang ZPC Sales Co. Ltd. Executive Director May 1 2021 No
Xiang Jiongjiong Zhoushan ZPC Trading Co. Ltd. Executive Director May 1 2023 No
Xiang Jiongjiong Zhoushan ZPC Sales Co. Ltd. Executive Director No
Xiang Jiongjiong Zhejiang Rongtong Chemical Fiber New Material Executive Director No Co. Ltd. General Manager
73 / 275Full content of 2025 Annual Report
Xiang Jiongjiong Taizhou ZPC Sales Co. Ltd. Executive Director February 1 2024 No
Xiang Jiongjiong Ningbo ZPC Sales Co. Ltd. Executive Director December 01 2023 No
Executive Director
Xiang Jiongjiong Zhejiang Rongyi Chemical Fiber Co. Ltd. March 1 2024 No Manager
Shanghai Lingang New Area Jingang Shengyuan
Xiang Jiongjiong No Real Estate Co. Ltd. Director November 1 2021
Shanghai Lingang New Area Jingang Rongsheng
Xiang Jiongjiong No Real Estate Co. Ltd. Director July 1 2023
Xiang Jiongjiong Sanyuan Holding Group Hangzhou Thermal No Power Co. Ltd. Supervisor June 1 2012
Xiang Jiongjiong Zhejiang International Commodity Exchange 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 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 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
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
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Shao Yiping Zhongtian Service Co. Ltd. Independent Director October 12 2020 Yes
Professor Doctoral
Yao Zheng Zhejiang University May 1 1992 Yes Supervisor
Yao Zheng Jinshi Resources Group Co. Ltd. Independent Director December 26 2024 Yes
Yao Zheng Guangyu Group Co. Ltd. Independent Director November 8 2022 Yes
Yu Yi Zhejiang Gongshang University Professor April 11 1991 Yes
Yu Yi Chengda Pharmaceutical Co. Ltd. Independent Director October 8 2019 November 12 2025 Yes
Yu Yi Zhejiang Xin'ao Textile Co. Ltd. Independent Director January 17 2020 January 16 2026 Yes
Zhou Xianhe Zhejiang Shengyuan Chemical Fiber Co. Ltd. General Manager June 1 2017 No
Zhou Xianhe Zhejiang Shenghui New Materials Co. Ltd Manager No
Quan Weiying Zhejiang Yisheng Petrochemical Co. Ltd. Supervisor 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
Zhejiang Daishan Rural Commercial Bank Co.Wang Yafang Ltd. Director February 5 2018
No
Wang Yafang Dalian Yishengyuan Property Co. Ltd. Supervisor March 19 2018 No
Hangzhou Shengyuan Real Estate Development
Wang Yafang Co. Ltd. Supervisor June 24 2014
No
Wang Yafang Rongsheng Technology Co. Ltd. Supervisor April 28 2016 No
Hainan Shenggu Petrochemical Equipment
Wang Yafang No Investment Co. Ltd. Supervisor December 21 2018
Description of
employment in other units None
Penalties imposed by securities regulatory authorities in the past three years on the Company's current and dismissed Directors and Senior Management in the reporting
period
RApplicable □ Not applicable
75 / 275Full content of 2025 Annual Report
In January 2023 Chairman Li Shuirong General Manager Xiang Jiongjiong 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 Juchao Zixun 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 Juchao Zixun website (www.cninfo.com.cn).
3. Remuneration of the Directors and Senior Management
Decision-making procedure basis of determination and actual payment of remuneration of the Directors and Senior
Management
1. Decision-making procedures and basis for determining the remuneration of directors and Senior Management:
The Company strictly executes the remuneration decision-making procedures in accordance with the Management
System for Remuneration of Directors and Senior Management. The remuneration schemes for the directors and
Senior Management of the Company are formulated by the Remuneration and Appraisal Committee of the Board
of Directors which explicitly specifies the basis for determination and the specific composition of the remuneration.The remuneration schemes for Senior Management are approved by the Board of Directors explained to the General
Meeting of Shareholders and fully disclosed. The remuneration schemes for directors are determined by the General
Meeting of Shareholders and duly disclosed. The remuneration and allowance schemes for directors and Senior
Management for the year 2025 and the year 2026 have been deliberated and approved by the Remuneration and
Appraisal Committee in 2026 and resolved to be executed at the 5th Meeting of the 7th Board of Directors held on
April 26 2026. Among them the remuneration and allowance schemes for directors for the year 2025 and the year
2026 are still subject to the deliberation and approval of the 2025 Annual General Meeting of Shareholders before
implementation.
2. Actual payment of remuneration for Directors and Senior Management: At the end of the reporting period the
total remuneration actually received by all Directors and Senior Management amounted to RMB 13.4609 million.Remuneration of the Company’s Directors 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 70 Chairman Incumbent 513.41 No
Alharbi Mitib
Awadh M Male 49 Director Incumbent 0 Yes
Xiang
Jiongjiong Male 43 Director General Manager Incumbent 380.35 No
76 / 275Full content of 2025 Annual Report
Li Yongqing Male 62 Director Incumbent 0 Yes
Li Cai'e Female 63 Director Incumbent 0 Yes
Yu Fengdi Female 58 Director Incumbent 0 Yes
Shao Yiping Female 63 Independent Director Incumbent 16 No
Yao Zheng Male 69 Independent Director Incumbent 8.69 No
Yu Yi Male 61 Independent Director Incumbent 8.69 No
Yan Jianmiao Male 61 Independent Director Un-incumbent 7.31 No
Zheng
Xiaodong Male 48 Independent Director Un-incumbent 7.31 No
Zhou Xianhe Male 51 Deputy General Manager Incumbent 167.97 No
Quan Weiying Female 48 Secretary of the Board of Directors Incumbent 111.15 No
Wang Yafang Female 47 Chief Financial Officer Incumbent 125.21 No
Total -- -- -- -- 1346.09 --
Assessment basis for the remuneration actually received by all
directors and senior management at the end of the reporting General assessment scheme
period
Completion of assessment for the remuneration actually
received by all directors and senior management at the end of the Completed
reporting period
Deferred payment arrangement for the remuneration actually
received by all directors and senior management at the end of the Not Applicable
reporting period
Payment suspension and clawback for the remuneration actually
received by all directors and senior management at the end of the Not Applicable
reporting period
Description of other situations
□ Applicable R Not applicable
V. The Performance of Duties of Directors During the Reporting Period
1. Directors' attendance at the Board of Directors Meetings and General Meetings of Shareholders
Directors' Attendance at the Board of Directors Meetings and General Meeting of Shareholders
Number of
the Board of Number
Number of Whether
Attendance Number of
Number Number of
Directors of of Being Absent Attendance
Name of Meeting that Presence
at the Attendance Absence from the at the
Directors Should be at the
Board of at the Board Board of
Attended Board of Directors of Directors
from the Directors General
Meeting by Meeting by Board of Meeting Meeting of During the Directors Directors Shareholde
Reporting Meeting Correspon Proxy Twice in a
Period dence
Meeting Row rs
Li Shuirong 7 2 5 0 0 No 3
77 / 275Full content of 2025 Annual Report
Alharbi Mitib
Awadh M 7 1 6 0 0 No 5
Xiang Jiongjiong 7 1 6 0 0 No 5
Li Yongqing 7 2 5 0 0 No 5
Li Cai'e 7 2 5 0 0 No 5
Yu Fengdi 7 2 5 0 0 No 5
Yan Jianmiao 2 1 1 0 0 No 1
Shao Yiping 7 2 5 0 0 No 5
Zheng Xiaodong 2 0 2 0 0 No 2
Yao Zheng 5 1 4 0 0 No 3
Yu Yi 5 1 4 0 0 No 3
Description for being absent from the Board of Directors Meeting twice in a row
2. Disagreement voiced by Directors on relevant corporate matters
Whether Directors propose an objection to the Company's relevant matters
□ Yes R No
During the reporting period the Directors voiced no disagreement on relevant corporate matters.
3. Additional information on the performance of duties of Directors
Whether Directors' suggestions to the Company are adopted
RYes □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
Working Rules 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.
78 / 275Full content of 2025 Annual Report
VI. The Special Committees under the Board of Directors During the Reporting Period
Number Other Matters Matters that Convening
Name Members of Content of Meeting Important Opinions and Suggestions Concerning Raise
Sessions date Performance Disagreement of Duties (If Any)
In terms of internal audit the Audit Committee
earnestly understood the implementation of the
internal audit department's work plan and verified
Deliberated: the audit results; in terms of financial reports the
1. Rongsheng Petrochemical Committee actively communicated with the
Co. Ltd. 2024 Q4 Internal Company's accounting department and external
Audit Work Report; accountants reviewed the norms of the Company's
2. Rongsheng Petrochemical financial system and the preparation process of
January 17 Co. Ltd. 2024 Internal Audit financial reports ensuring the accuracy and
All the contents
2025 Work Report; completeness of the financial reports; in terms of
of the meeting
were passed None
3. Rongsheng Petrochemical internal control the Committee unanimously
agreed that the Company had established a after review. Co. Ltd. 2025 Internal Audit
Li Yongqing Li Work Plan; relatively sound internal control organizational
The Audit Cai'e Yan Jianmiao 4. Rongsheng Petrochemical structure and the internal control department
Committee Shao Yiping Zheng 3 Co. Ltd. 2025 Q1 Internal strictly followed the relevant regulations to
Xiaodong Audit Work Plan. comprehensively carry out the internal control testing process effectively preventing internal
control defects and improving the Company's
internal control level.Deliberated:
1. Evaluation Report of the According to the requirements of laws and
Board of Directors on the regulatory guidelines combined with the actual
April 22 Performance of Duties by the situation of the Company the Committee reviewed
All the contents
2025 Accounting Firm in 2024; the annual performance of the accounting firm
of the meeting None
2. Report of the Audit internal audit supervision responsibilities and the
were passed
Committee of the Board of reappointment of the audit institution and guided
after review.Directors on the Supervision the orderly development of internal audit work.of the Accounting Firm in
79 / 275Full content of 2025 Annual Report
2024;
3. Rongsheng Petrochemical
Co. Ltd. 2024 Annual Report;
4. Proposal on Changes to
Accounting Policies of
Rongsheng Petrochemical
Co. Ltd.;
5. Proposal on Reappointing
the 2025 Annual Audit
Institution of Rongsheng
Petrochemical Co. Ltd.;
6. Rongsheng Petrochemical
Co. Ltd. 2024 Annual
Internal Control Self-
evaluation Report.Deliberated:
1. Rongsheng Petrochemical
Co. Ltd. 2025 Q1 Internal According to the requirements of laws and
Audit Work Report; regulatory guidelines combined with the actual All the contents
April 28 situation of the Company the Committee reviewed of the meeting
2025 2. Rongsheng Petrochemical the quarterly report put forward opinions on the were passed None
Co. Ltd. 2025 Q2 Internal internal audit results and guided the orderly after review.Audit Work Plan; development of internal audit work.
3. Rongsheng Petrochemical
Co. Ltd. 2025 Q1 Report.Deliberated: According to the requirements of laws and
1. Proposal on Appointing the regulatory guidelines combined with the actual
Chief Financial Officer of situation of the Company the Committee reviewed
Rongsheng Petrochemical the periodic report put forward opinions on the All the contents May 16 Co. Ltd.; internal audit results and guided the orderly of the meeting None
The Audit Li Yongqing Li 2025 2. Proposal on Appointing the development of internal audit work.were passed
Committee Cai'e Shao Yiping 4 after review. Yaozheng Yu Yi Head of Internal Audit of
Rongsheng Petrochemical
Co. Ltd.August 11 Deliberated: According to the requirements of laws and All the contents
2025 1. Rongsheng Petrochemical regulatory guidelines combined with the actual
None
of the meeting
80 / 275Full content of 2025 Annual Report
Co. Ltd. 2025 Q2 Internal situation of the Company the Committee reviewed were passed
Audit Work Report; the periodic report put forward opinions on the after review.
2. Rongsheng Petrochemical internal audit results and guided the orderly
Co. Ltd. 2025 Q3 Internal development of internal audit work.Audit Work Plan;
3. Rongsheng Petrochemical
Co. Ltd. 2025 Semi-annual
Internal Audit Work Report;
4. Rongsheng Petrochemical
Co. Ltd. 2025 Semi-annual
Report.Deliberated: According to the requirements of laws and
1. Rongsheng Petrochemical regulatory guidelines combined with the actual
Co. Ltd. 2025 Q3 Internal situation of the Company the Committee reviewed
Audit Work Report; the quarterly report put forward opinions on the
2. Rongsheng Petrochemical internal audit results and guided the orderly development of internal audit work. All the contents
October Co. Ltd. 2025 Q4 Internal Audit Work Plan; of the meeting 24 2025 were passed None
3. Rongsheng Petrochemical after review.
Co. Ltd. 2025 Q3 Report;
4. Proposal on Revising the
"Accounting Firm Selection
and Appointment
Management System".Deliberated: The participating committee members focused on
1. Proposal on the Company's analyzing the strategic focus transaction necessity
2026 Annual Mutual and whether the pricing was fair and reasonable All the contents
December Guarantee Quota; and unanimously agreed to these two proposals. of the meeting
4 2025 None 2. Proposal on the Transfer of were passed
Equity by a Wholly-owned after review.Subsidiary and Related-party
Transactions.The Risk Zheng Xiaodong April 14 Convened the 2025 annual After analyzing the situation in 2024 the All the contents Control Yan Jianmiao Li 1 2025 meeting of the Risk Control participating committee members unanimously of the meeting None Committee Cai'e Shao Yiping Committee: evaluated the risk agreed that in 2025 the Company needs to were passed
81 / 275Full content of 2025 Annual Report
Xiang Jiongjiong situation during the continue to focus on the overall business after review.Company's operations in objectives execute the basic risk management
2024 and put forward process across major links key areas and even the
suggestions for risk control whole process of operation foster a good risk
during operations in 2025. management culture and establish and improve a
comprehensive risk management system including
formulating risk management strategies assessing
the risk management organizational function
system and improving the risk management
information system and internal control system so
as to achieve the annual risk management goals
and enhance the Company's overall anti-risk
capability and sustainable profitability.The Company's Board of
Directors proposed to According to the requirements of laws and
nominate Li Shuirong Mitib regulatory guidelines the Committee reviewed the
Awadh M. Alharbi Li qualifications of the proposed director nominees
Yongqing Xiang Jiongjiong found no situations non-compliant with relevant
and Li Cai'e as candidates for appointment regulations of the Company Law nor All the contents April 15
Li Shuirong Yu 2025 non-independent directors of
were they identified by the CSRC as banned from of the meeting
the 7th Board of Directors; the market with the ban not yet lifted. The were passed
None
The Fengdi Yan
and nominated Shao Yiping Committee considered that they possess the after review. Nominating Jianmiao Shao 2
Yao Zheng and Yu Yi as qualifications and professional qualities Committee Yiping Zheng
Xiaodong candidates for independent
corresponding to the exercise of their powers and
directors of the 7th Board of agreed to the above personnel as candidates for the
Directors. new Board of Directors.May 15 Reviewed the qualifications According to the requirements of laws and
All the contents
2025 of the proposed employee regulatory guidelines the Committee reviewed the
of the meeting None
director. qualifications of the proposed employee director. were passed after review.The Li Shuirong Yu Reviewed the qualifications According to the requirements of laws and All the contents
Nominating Fengdi Shao 1 May 16 of the proposed senior regulatory guidelines the Committee reviewed the of the meeting
Committee Yiping Yao Zheng 2025 management personnel and qualifications of the proposed senior management were passed
None
Yu Yi other management personnel. personnel and other management personnel. after review.The Strategy Li Shuirong Li April 16 Convened the 2025 annual 2025 major business strategies: 1. Deepen and All the contents
& Yongqing Yan 1 2025 meeting of the Strategy and refine cultivation to achieve "high quality" with of the meeting None
Sustainability Jianmiao Shao ESG Committee: * improved quality and increased quantity; 2. were passed
82 / 275Full content of 2025 Annual Report
Committee Yiping Zheng Formulate the Company's Optimize the layout to accelerate the "speed" of after review.Xiaodong long-term development project construction; 3. Deepen cooperation to
strategy; * Supervise and build a "new pattern" of international development;
verify the Company's major 4. Integrate innovation to deploy a "combination
investment decisions etc.; * punch" of digital intelligence and green energy.Deliberate and supervise the
Company's ESG matters.Convened the 2025 annual
meeting of the Remuneration During the reporting period the Remuneration and
and Appraisal Committee: * Appraisal Committee reviewed the rationality of
Li Shuirong Yu Remuneration of the the remuneration policies and plans for the The
Remuneration Fengdi Yan April 17 Company's directors
Company's directors supervisors and senior All the contents
Jianmiao Shao 1 supervisors and senior management and conducted performance of the meeting and Appraisal None
Committee Yiping Zheng
2025 management in 2024; * appraisals on them based on the completion of the were passed
Xiaodong Remuneration appraisal plan Company's financial status and operating results in after review.for the Company's directors 2024 as well as the scope of work and main
supervisors and senior responsibilities of the directors supervisors and
management in 2025. senior management.VII. The Work of the Audit Committee
During the reporting period whether the Audit Committee has found that the Company was at risk in the process of its supervisory activities
□ Yes R No
The Audit Committee voiced no disagreement on the supervisory matters during the reporting period.
83 / 275Full content of 2025 Annual Report
VIII. Corporate Staff
1. Staff number professional composition and educational background
Number of Staff on the Parent Company’s Payroll at the End 1946
of the Reporting Period
Number of Staff on the Main Subsidiaries’ Payroll at the 17903
End of the Reporting Period
Total Number of Staff on the Company’s Payroll at the End 19849
of the Reporting Period
Total Number of Staff Receiving Remuneration 19849
Number of Retired Staff Whose Pensions Are Covered by the 0
Parent Company and Main Subsidiaries
Professional Composition
Category Number
Production Staff 15396
Sales Staff 280
Technical Staff 2777
Financial Staff 136
Administrative Staff 532
Logistical Staff 728
Total 19849
Educational Background
Category Number
Bachelor’s Degree or Above 7259
Vocational College 6867
Senior High School and Technical Secondary School 2196
Other 3527
Total 19849
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.
84 / 275Full content of 2025 Annual Report
4. Labor outsourcing
□ Applicable R Not applicable
IX. Distribution of Corporate Profits and Shift of Capital Reserve Funds to Capital Stock
Formulation implementation or adjustment of profit distribution policy especially the cash dividend policy during the reporting period
RApplicable □ Not applicable
The 2024 annual profit distribution plan deliberated and approved at the 23rd Meeting of the 6th Board of
Directors of the Company on April 24 2025 is as follows: Based on 9572292142 shares (which is the current
total share capital of 10125525000 shares less the 553232858 repurchased shares) a cash dividend of RMB 1.00
(tax inclusive) per 10 shares shall be distributed to all shareholders. No bonus shares will be issued and no capital
reserve will be converted into share capital. The Company has completed the profit distribution in accordance with
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 R Not applicable
Profit distribution and conversion of capital reserve into share capital during the reporting period
R Applicable □ Not applicable
Number of Bonus Shares Given for Ten Shares 0
Number of distributed dividends per ten shares (RMB) (tax
inclusive) 1.00
Share capital base of the proposed distribution plan (shares) 9572292142
Cash dividend amount (RMB) (including tax) 957229214.20
Cash dividend amount (RMB) through other means (such as
share repurchase) 0
Total cash dividend (RMB) (including other means) 957229214.20
Distributable profit (RMB) 1528511563.71
Percentage of total cash dividend (including other means) to
total profit distribution 100.00%
Cash dividends
The cash dividend should account 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 Capital Reserve to Capital Stock
85 / 275Full content of 2025 Annual Report
As audited by Pan-China Certified Public Accountants LLP (Special General Partnership) the Company (parent company)
achieved a net profit of RMB -299830876.23 in 2025. Adding the undistributed profit of RMB 2785571654.14 at the beginning
of the year and deducting the statutory surplus reserve of RMB 0 appropriated in the current period as well as the cash dividend of
RMB 957229214.20 from the previous year the actual profit available for distribution to shareholders was RMB 1528511563.71
as of December 31 2025.X. Implementation of the Equity Incentive Plan Employee Stock Ownership Plan or other
Employee Incentives
□ Applicable R Not applicable
The Company had no implementation of a stock incentive plan employee stock ownership plan or other employee incentives during
the reporting period.XI. Institutional Development and Implementation of Internal Control During the Reporting
Period
1. Construction and implementation of internal control
The Company has established and perfected a relatively sound internal control management system in
accordance with the requirements of the Company Law the Securities Law the Guidelines for the Articles of
Association of Listed Companies the Code of Corporate Governance for Listed Companies and other applicable
laws regulations and normative documents in light of the Company's actual conditions. On November 19 2025
the Company held its Third Extraordinary General Meeting of Shareholders of 2025 which deliberated and
approved the Proposal on Revising the "Articles of Association" and its Appendices. The Company no longer
maintains a Board of Supervisors and certain functions and powers of the Board of Supervisors have been
undertaken by the Audit Committee of the Board of Directors. In accordance with the latest regulations the
Company has revised relevant internal rules including the Rules of Procedure of the General Meeting of
Shareholders the Rules of Procedure of the Board of Directors the Working Rules for Independent Directors and
the Working Rules of the Audit Committee of the Board of Directors. These revisions clearly define the
responsibilities and authorities of the General Meeting of Shareholders the Board of Directors various special
committees and Senior Management as well as the decision-making procedures regarding the Company's external
guarantees related-party transactions and derivative trading. A dedicated internal audit department has been
established under the Audit Committee of the Board of Directors to independently carry out internal audit work in
accordance with the law and to supervise and evaluate the Company's internal control management. During the
reporting period the Company maintained effective internal control in all material aspects in accordance with the
requirements of the Internal Control System and other relevant regulations with no material defects found in its
internal control.
2. Specific information on major internal control defects found during the reporting period
□ Yes R No
XII. Management Control of Subsidiaries during the Reporting Period
Not applicable
86 / 275Full content of 2025 Annual Report
XIII. Internal control self-evaluation report and internal control audit report
1. Internal control self-evaluation report
Report Disclosure Date April 28 2026
The Corporate Internal Control Self-evaluation Report 2025 is available on Juchao
Report Disclosure Index Zixun Website (http://www.cninfo.com.cn).Proportion of the Total Assets of the
Organizations Included in the
Assessment Scope to Those of the 91.39%
Company’s Consolidated Financial
Statements
Proportion of the Operating Revenues
of the Organizations Included in the
Assessment Scope to Those of the 88.64%
Company’s Consolidated Financial
Statements
Defect Identification Standards
Category Financial Statements Non-Financial Statements
Signs of material defects in financial
reporting include: (1) Ineffective control
environment; (2) Fraud committed by
Directors Supervisors and Senior
Management; (3) External auditors
identify a material misstatement in the The following scenarios can be identified
current financial report that failed to be as material defects while other scenarios
detected by the Company during its shall be determined as important or
operations; (4) Ineffective oversight of general defects depending on the extent of
internal control by the Audit Committee their impact: (1) Unscientific decision-
and internal audit department; and (5) making procedures; (2) Violation of
Other defects that may affect the correct national laws and regulations such as
Qualitative Standards judgment of the report users. Signs of causing environmental pollution; (3) important defects in financial reporting Mass exodus of management or technical
include: An individual internal control personnel; (4) Frequent negative news in
defect or a combination of defects that the media; (5) Failure to rectify the
has a reasonable possibility of failing to findings of internal control assessments
prevent or detect and correct on a timely especially material or important defects;
basis any misstatements in the financial and (6) Lack of institutional control over
report that although not reaching or important operations or systematic
exceeding the materiality level still merit institutional failure.the attention of the Board of Directors and
management. General defects refer to
other control defects apart from the
material and important defects mentioned
above.Operating revenue and total assets are Operating revenue and total assets are
taken as the measurement indicators. If taken as the measurement indicators. If
the potential or actual losses resulting the potential or actual losses resulting
Quantitative Standards from internal control defects are related to from internal control defects are related to
the income statement the operating the income statement the operating
revenue will be taken as the indicator. If revenue will be taken as the indicator. If
the amount of misstatement in the the amount of misstatement in the
financial report caused by an individual financial report caused by an individual
87 / 275Full content of 2025 Annual Report
defect or in combination with other defect or in combination with other
defects is less than 0.5% of the operating defects is less than 0.5% of the operating
revenue it is recognized as a general revenue it is recognized as a general
defect; if the amount exceeds 0.5% but is defect; if the amount exceeds 0.5% but is
lower than 1% of the operating revenue it lower than 1% of the operating revenue it
is recognized as an important defect; if the is recognized as an important defect; if the
amount exceeds 1% of the operating amount exceeds 1% of the operating
revenue it is recognized as a material revenue it is recognized as a material
defect. If the potential or actual losses defect. If the potential or actual losses
resulting from internal control defects are resulting from internal control defects are
related to asset management the total related to asset management the total
assets will be taken as the indicator. If the assets will be taken as the indicator. If the
amount of misstatement in the financial amount of misstatement in the financial
report caused by an individual defect or in report caused by an individual defect or in
combination with other defects is less combination with other defects is less
than 0.5% of the total assets it is than 0.5% of the total assets it is
recognized as a general defect; if the recognized as a general defect; if the
amount exceeds 0.5% but is lower than amount exceeds 0.5% but is lower than
1% of the total assets it is recognized as 1% of the total assets it is recognized as
an important defect; if the amount an important defect; if the amount
exceeds 1% of the total assets it is exceeds 1% of the total assets it is
recognized as a material defect. 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
Statements 0
Number of Important Defects in Non-
Financial Statements 0
2. Internal control audit report
RApplicable □ 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 2025 in accordance with the Basic Standard for Enterprise Internal Control and related provisions.Report Disclosure Status Disclosed
Report Disclosure Date April 28 2026
Report Disclosure Index The Internal Control Audit Report in 2025 is available on Juchao Zixun Website (http://www.cninfo.com.cn).Type of Audit Opinion Standard Unqualified Opinion
Whether Having Material Defects in Non-Financial
Statements N/A
Whether the accounting firm issued the internal control audit report of non-standard opinion
□ Yes R No
The internal control audit report of the accounting firm is in line with the self-evaluation report of the Board of
Directors or not
RYes □No
88 / 275Full content of 2025 Annual Report
Wether there was a non-standard audit opinion issued for internal controls during the reporting period or the previous
year
□ Yes R No
XIV. 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
Special Campaign and offered timely feedback on the self-examination results. We found zero problems that need
rectifying.XV. Enviromental Information Disclosure
Wether the listed company and its major subsidiaries are included in the list of enterprises legally required to disclose environmental
information
RApplicable □ Not applicable
Note: The Company's investment in environmental governance and protection in 2025 is RMB 219.9002 million.Number of companies included in the list of enterprises legally
9
required to disclose environmental information (number)
S
/ Name of the company Index for searching environmental information disclosu
N re reports in accordance with the law
Rongsheng Petrochemical Co. Ltd. https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-morecode=
1 91330000255693873W&uniqueCode=3c406d8e3223fa92&
date=2025&type=true&isSearch=true
Zhejiang Petroleum & chemical Co. Ltd. https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-morecode=
2 913309003440581426&uniqueCode=1056c787e9ef884a&d
ate=2025&type=true&isSearch=true
Zhejiang Petroleum & chemical Co. Ltd. (Mamu Oil Depot) https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-morecode=
3 913309003440581426&uniqueCode=0b60a837e866388c&
date=2025&type=true&isSearch=true
Zhejiang Petroleum & chemical Co. Ltd. Zheyou Technology https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-morecode=
4 Co. Ltd. 91330900MA2DMDUK27&uniqueCode=2a12c41d235c88
2b&date=2025&type=true&isSearch=true
Ningbo Zhongjin Petrochemical Co. Ltd. https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-morecode=
5 91330211764527945N&uniqueCode=3cb00cd1ff3a7624&d
ate=2025&type=true&isSearch=true
Ningbo Niluoshan New Energy Co. Ltd. https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-morecode=
6 91330211MA2CHYTM1K&uniqueCode=947307eeb99e53
88&date=2025&type=true&isSearch=true
7 Yisheng Dahua Petrochemical Co. Ltd. https://qyxxpl.ywzh.lnsthj.cn:8802/home/companiesreportenterId=682078492708869&publishdataId
Zhejiang Shengyuan Chemical Fiber Co. Ltd. https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-
8 morecode=91330109754409144F&uniqueCode=01dd3dde
b8ed1d86&date=2025&type=true&isSearch=true
Zhejiang Yongsheng Technology Co. Ltd. https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-
9 morecode=91330621MA2887DL53&uniqueCode=e0aae0
9c993e2f66&date=2025&type=true&isSearch=true
89 / 275Full content of 2025 Annual Report
The company must comply with the disclosure requirements for the chemical industry as outlined in the Shenzhen
Stock Exchange Guidelines for Self-Regulatory Supervision of Listed Companies No. 3 – Industry Information
Disclosure.environmental accidents in listed companies: Not applicable
90 / 275Full content of 2025 Annual Report
XVI. Social responsibility information
The Company actively performs its social responsibility and supports poverty alleviation and rural
revitalization. For related contents check the 2025 Sustainability Report issued by the Company on April 28 2026
on Juchao Information (www.cninfo.com.cn).The company must comply with the disclosure requirements for the chemical industry as outlined in the
Shenzhen Stock Exchange Guidelines for Self-Regulatory Supervision of Listed Companies No. 3 – Industry
Information Disclosure.XVII. 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 2025 Sustainability Report issued by the Company on April 28 2026 on Juchao
Information (www.cninfo.com.cn).
91 / 275Full content of 2025 Annual Report
Section V 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
RApplicable □ Not applicable
Cause of Commitment Commitment Time of Term of Fulfillme
Commitment Party Type Content of Commitment Commitment Commitment 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 transfer shares they held
(including directly and
Directors and Share indirectly) in the issuer of more Commitm
supervisors of reduction than 25% of the total shares November 2 Long ents
the Company commitment held (including directly and 2010 term honored
indirectly) by them in the issuer
every year. Within half a year
Commitment after resignation they would
made during not transfer shares directly or
IPO or re- indirectly held by them in the
financing issuer.Within 36 months from the date
of the company's stock listing
they will not transfer or entrust
others to manage the shares of
the issuer that it directly or
Pre-IPO Share lock-up indirectly holds (including November 2 Long Commitm
Shareholders commitment shares derived from such 2010 term ents
shares such as bonus shares honored
capitalization of capital
reserves etc.) nor will it
require the issuer to repurchase
such shares.
92 / 275Full content of 2025 Annual Report
Equity N/A N/A
incentive N/A N/A N/A
commitment
Rongsheng Holding the
controlling shareholder of the
Company signed the Non-
competition Agreement with the
Company and promised not to
Commitments compete with the Company in
regarding the same industry. Li Shuirong Other
competition the de facto controller and the commitments largest natural person
made to minor Pre-IPO with peers related-party shareholder of the Company November 2 Long
Commitm
shareholders Shareholders transactions and other shareholders 2010 term
ents
of the and including Li Yongqing Li
honored
Company misappropriati Guoqing Ni Xincai Xu
on of funds Yuejuan and Zhao Guanlong respectively issued the Letter of
Commitment on Avoiding
Horizontal Competition and
promised not to compete with
the company in the same
industry.Rongsheng Holdings promises During
not to voluntarily reduce its the
Zhejiang share Shareholding holdings of Rongsheng No breach Rongsheng increase Petrochemical shares during the January 19
increase of
Holding commitment period of shareholding increase 2024
period
and commitmeGroup and within the statutory period nt
and to strictly abide by relevant statutory
regulations. time limit
Rongsheng Holdings promises During
not to voluntarily reduce its the
Other Zhejiang
share
Rongsheng Shareholding
holdings of Rongsheng No breach
commitments increase Petrochemical shares during the
increase
Holding August 21 2024 period
of
Group commitment
period of shareholding increase commitme
and within the statutory period and nt
and to strictly abide by relevant statutory
regulations. time limit
Rongsheng Holdings promises During
not to voluntarily reduce its the
Zhejiang Shareholding holdings of Rongsheng
share No breach
Rongsheng increase Petrochemical shares during the
increase of
Holding commitment period of shareholding increase
April 7 2025 period
and commitmeGroup and within the statutory period
and to strictly abide by relevant statutory
nt
regulations. time limit
Whether the
commitments
are performed Yes
on time
93 / 275Full content of 2025 Annual Report
If the
commitments
have not been
fulfilled after
the deadline
the specific
reasons for the
failure to
complete the N/A
performance
and the 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 R Not applicable
3. The Company involves performance commitments
□ Applicable R Not applicable
II. Non-operating Occupation of Funds of the Listed Company by the Controlling
Shareholder and Other Related Parties
□ Applicable R Not applicable
There were no non-operating fund misappropriations of the listed company by its controlling shareholder or other related parties during
the reporting period
III. Illegal External Guarantee
□ Applicable R 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 R Not applicableV. Explanation of the Board of Directorsand the Independent Directors (if any) on the “Non-standard Audit Report” for the reporting period issued by the accounting firm
□ Applicable R Not applicable
94 / 275Full content of 2025 Annual Report
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 R Not applicable
During the reporting period there was no change in accounting policies accounting estimates or correction of major accounting errors.VII. Explanation of Changes in the Scope of Consolidated Statements Compared with the
Financial Report of the Previous Year
RApplicable □ Not applicable
Company name Acquisition and disposal methods Impact on overall production during the reporting period operation and performance
Zhejiang Shenghui New Materials Co. Ltd. New establishment No significant impact
Zhejiang Petrochemical New Materials
(Zhoushan) Co. Ltd. New establishment No significant impact
Zhejiang Rongshen New Materials Co. Ltd. Industrial and commercial deregistration No significant impact
Zhejiang Rongshen New Materials Co. Ltd. Industrial and commercial deregistration No significant impact
Zhejiang Huiyu New Materials Co. Ltd. Industrial and commercial deregistration No significant impact
Rongsheng Energy (Zhoushan) Co. Ltd. Share sales No significant impact
VIII. Appointment and Dismissal of Accounting Firm
The accounting firm employed currently
Pan-China Certified Public Accountants (Special General
Name of domestic accounting firm Partnership)
Remuneration of domestic accounting firms (RMB 10000) 770
Consecutive audit services year of domestic accounting firm 20
Name of the certified public accountant of a domestic
accounting firm Xu Haihong Xu Cheng
Consecutive years of audit service of the certified public
accountant of a domestic accounting firm 5 years 1 year
Whether the accounting firm was reappointed during the period
□ Yes R No
Engagement of internal control audit accounting firms financial advisers or sponsors
RApplicable □ Not applicable
For the current year the Company has appointed Pan-China Certified Public Accountants (Special General
Partnership) as its annual internal control auditor.IX. Delisting after the disclosure of the Annual Report
□ Applicable R Not applicable
95 / 275Full content of 2025 Annual Report
X. Matters related to bankruptcy and reorganization
□ Applicable R 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 R Not applicable
The Company had no major litigation and arbitration during the reporting period.XII. Punishment and rectification
□ Applicable R Not applicable
There were no penalties or rectification measures in place during the Company's reporting period.XIII. Integrity conditions of the Company its controlling shareholders and actual controllers
□ Applicable R Not applicable
96 / 275Full content of 2025 Annual Report
XIV. Major Related Transactions
1. Related party transactions related to daily operations
RApplicable □ Not applicable
Pricing
Type of Content principle Price Amount Proporti Trading Above Settleme Available
Related Relati related
s of
related s of
of of related on to
related party similar limit the
nt of market
party onshi party party related party transacti transacti approved approved
related price for Disclosur
party similar e Date Disclosure index p transact transact party ion transacti transa on (RMB on
(RMB limit or
ion ction 10000) amount 10000) not
transacti transacti
on on on
Rongsh Banker's Parent Purchas Coal and https://www.cninfo.com.cn/new/diseng other Market Market 805899.3 acceptanc Market April 25 closure/detailorgId=9900015502
Holding compa e of ny goods material price price 1
73.30% 1500000 No e bill spot
exchange price 2025 &announcementId=1223285152&as s etc. nnouncementTime=2025-04-25
Minor Crude Letter of
Saudi ity Purchas oil fuel
https://www.cninfo.com.cn/new/dis
e of oil Market Market 1007910 1300000
credit
53.28% Market April 25 closure/detailorgId=9900015502Aramco shareh goods ethylene price price 8.30 0
No spot
exchange price 2025 &announcementId=1223285152&aolders glycol etc. nnouncementTime=2025-04-25
Zhejian Associ
Banker's https://www.cninfo.com.cn/new/dis
g ated Sales of PTA 、 Market Market 907911.3
acceptanc Market April 25 closure/detailorgId=9900015502
Yisheng enterp goods PX price price 2
14.68% 1000000 No e bill spot
exchange price 2025 &announcementId=1223285152&arise etc. nnouncementTime=2025-04-25
Total -- -- 1179291 -- 15500008.93 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
97 / 275Full content of 2025 Annual Report
2. Related party transactions arising from the acquisition and sale of assets or equity
□ Applicable R Not applicable
The Company had no related party transactions related to the acquisition or sales of assets or equity during the
reporting period.
3. Related-party transactions for outward joint investment
□ Applicable R Not applicable
The Company had no related party transactions related to joint outward investment during the reporting period.
4. Related party transactions on credit and debt
□ ApplicableR Not applicable
The Company had no related party transactions on credit and debt during the reporting period.
5. Transactions with financial companies with associated relationships
□ Applicable RNot 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 R 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 R Not applicable
There were no other major related party transactions during the reporting period.XV. Material Contracts and Their Performance
1. Status of entrustment contracting and leasing
(1) Entrustment
□ Applicable R Not applicable
The Company had no entrustment during the reporting period.
(2) Contracting
□ Applicable R Not applicable
The Company had no contracting during the reporting period.
98 / 275Full content of 2025 Annual Report
(3) Leasing
□ Applicable R Not applicable
The Company had no leasing during the reporting period.
99 / 275Full content of 2025 Annual Report
2. Major guarantee
RApplicable □ Not applicable
Unit：RMB 10000
Guarantees of the Company to its subsidiaries
Date of
Name of disclosure of Actual Actual Counter- If the Whether to
guaranteed announcement Guarantee occurrence guarantee Guarantee Collateral (if guarantee Guarantee guarantee provide
party relating to limit date amount type any) situation period has been guarantee for guarantee (if any) performed related party
limit
Shengyuan April 25
Chemical December 5030600 2025 10000 Joint liability 92025 guarantee
2026.4.24 No Yes
Fiber
Shengyuan March 21
Chemical December 92025 5030600 2025
10000 Joint liability guarantee 2026.3.21 No Yes
Fiber
Shengyuan December November Chemical 5030600 25 2025 2500 Joint liability 92025 guarantee
2026.11.24 No Yes
Fiber
Shengyuan November
Chemical December 92025 5030600 25 2025
7500 Joint liability guarantee 2026.11.24 No Yes
Fiber
Shengyuan December 3
Chemical December 5030600 2025 15000 Joint liability
Fiber 92025
guarantee 2026.12.2 No Yes
Shengyuan
Chemical December
December 3
5000 Joint liability
Fiber 92025
5030600 2025 guarantee 2026.12.2 No Yes
Shengyuan October 31
Chemical December 5030600 2025 10000 Joint liability guarantee 92025 2026.6.17 No Yes Fiber
Shengyuan December 5030600 February 12 125 Joint liability 2026.2.11 No Yes
100 / 275Full content of 2025 Annual Report
Chemical 92025 2025 guarantee
Fiber
Shengyuan February 12
Chemical December 5030600 2025 2250 Joint liability 92025 guarantee
2026.3.11 No Yes
Fiber
Shengyuan September
Chemical December 5030600 28 2025 675 Joint liability guarantee 2026.3.28 No Yes
Fiber 92025
Shengyuan
Chemical December
September
5030600 28 2025 675 Joint liability 92025 guarantee
2026.9.28 No Yes
Fiber
Shengyuan September
Chemical December 92025 5030600 28 2025
12150 Joint liability guarantee 2026.10.28 No Yes
Fiber
Shengyuan August 7
Chemical December 92025 5030600 2025
1093.12 Joint liability guarantee 2026.1.29 No Yes
Fiber
Shengyuan December September Chemical 5030600 14 2024 29440 Joint liability 92025 guarantee
2026.3.10 No Yes
Fiber
Shengyuan July 30 2025
Chemical December 92025 5030600
360 Joint liability guarantee 2026.1.30 No Yes
Fiber
Shengyuan July 30 2025
Chemical December 5030600 360 Joint liability
Fiber 92025
guarantee 2026.7.30 No Yes
Shengyuan
Chemical December
July 30 2025
360 Joint liability
Fiber 92025
5030600 guarantee 2027.1.30 No Yes
Shengyuan July 30 2025
Chemical December 92025 5030600
2520 Joint liability guarantee 2027.7.30 No Yes
Fiber
Shengyuan December 5030600 September 9 695 Joint liability 2026.3.9 No Yes
101 / 275Full content of 2025 Annual Report
Chemical 92025 2025 guarantee
Fiber
Shengyuan September 9
Chemical December 5030600 2025 695 Joint liability 92025 guarantee
2026.9.9 No Yes
Fiber
Shengyuan
Chemical December
September 9
5030600 2025 695 Joint liability 92025 guarantee
2027.3.9 No Yes
Fiber
Shengyuan December September 9 Chemical 92025 5030600 2025
4865 Joint liability guarantee 2027.9.9 No Yes
Fiber
Ningbo ZJPC December 92025 5030600
July 25 2025 2400 Joint liability guarantee 2026.7.24 No Yes
December
Ningbo ZJPC 92025 5030600
July 31 2025 27600 Joint liability guarantee 2026.7.30 No Yes
December August 14
Ningbo ZJPC 92025 5030600
1000 Joint liability
2025 guarantee
2026.8.13 No Yes
December August 19
Ningbo ZJPC 92025 5030600
50000 Joint liability
2025 guarantee
2026.8.18 No Yes
December January 24
Ningbo ZJPC 92025 5030600
30660 Joint liability
2025 guarantee
2026.1.23 No Yes
December
Ningbo ZJPC 5030600 July 2 2025 24709.78 Joint liability 92025 guarantee
2026.7.1 No Yes
December January 24
Ningbo ZJPC 5030600 50000 Joint liability 92025 2025 guarantee 2026.1.23 No Yes
Ningbo ZJPC December 5030600 January 23 20000 Joint liability 92025 2025 guarantee
2026.1.14 No Yes
Ningbo ZJPC December 92025 5030600
February 8 20000 Joint liability
2025 guarantee
2026.1.28 No Yes
Ningbo ZJPC December 92025 5030600
February 13 30000 Joint liability
2025 guarantee 2026.2.9 No Yes
102 / 275Full content of 2025 Annual Report
December November
Ningbo ZJPC 5030600 9700 Joint liability 92025 14 2025 guarantee 2026.11.13 No Yes
December November
Ningbo ZJPC 47000 Joint liability 92025 5030600 24 2025 guarantee 2026.11.20 No Yes
December November
Ningbo ZJPC 5030600 3000 Joint liability 92025 24 2025 guarantee 2026.11.20 No Yes
December December 17
Ningbo ZJPC 92025 5030600
15300 Joint liability
2025 guarantee
2026.4.10 No Yes
December December 23
Ningbo ZJPC 92025 5030600
30000 Joint liability
2025 guarantee
2026.4.17 No Yes
Ningbo ZJPC December December 29 11023.51 Joint liability 92025 5030600 2025 guarantee 2026.4.23 No Yes
Ningbo ZJPC December 92025 5030600
October 11 25000 Joint liability
2025 guarantee
2026.4.10 No Yes
Ningbo ZJPC December 92025 5030600
January 3 28400 Joint liability
2025 guarantee 2027.1.2 No Yes
Ningbo ZJPC December 5030600 January 26 100 Joint liability 92025 2025 guarantee
2026.1.25 No Yes
Ningbo ZJPC December 92025 5030600
January 26 100 Joint liability
2025 guarantee 2026.7.25 No Yes
Ningbo ZJPC December 5030600 January 26 5800 Joint liability 92025 2025 guarantee
2027.1.25 No Yes
December February 7
Ningbo ZJPC 5030600 100 Joint liability 92025 2025 guarantee
2026.2.4 No Yes
December February 7
Ningbo ZJPC 5030600 100 Joint liability 92025 2025 guarantee
2026.8.4 No Yes
December February 7
Ningbo ZJPC 5030600 20100 Joint liability guarantee 92025 2025 2027.2.4 No Yes
December February 19
Ningbo ZJPC 5030600 500 Joint liability 92025 2025 guarantee
2026.2.14 No Yes
103 / 275Full content of 2025 Annual Report
December February 19
Ningbo ZJPC 5030600 9000 Joint liability 92025 2025 guarantee 2026.3.17 No Yes
December December 12
Ningbo ZJPC 92025 5030600
2000 Joint liability
2025 guarantee
2026.6.9 No Yes
December December 12
Ningbo ZJPC 92025 5030600
2000 Joint liability
2025 guarantee 2026.12.9 No Yes
December December 12
Ningbo ZJPC 5030600 36000 Joint liability 92025 2025 guarantee 2027.1.6 No Yes
December December 26
Ningbo ZJPC 5030600 500 Joint liability 92025 2025 guarantee
2026.6.21 No Yes
Ningbo ZJPC December 92025 5030600
December 26 500 Joint liability
2025 guarantee 2026.12.21 No Yes
Ningbo ZJPC December 5030600 December 26 500 Joint liability 92025 2025 guarantee
2027.6.21 No Yes
Ningbo ZJPC December 5030600 December 26 500 Joint liability 92025 2025 guarantee
2027.12.21 No Yes
Ningbo ZJPC December 92025 5030600
December 26 7950 Joint liability guarantee 2025 2027.12.26 No Yes
Ningbo ZJPC December September 9.09 Joint liability 92025 5030600 16 2025 guarantee 2026.10.13 No Yes
Ningbo ZJPC December 92025 5030600
October 23 15764.66 Joint liability guarantee 2025 2026.3.27 No Yes
December October 23
Ningbo ZJPC 5030600 17388 Joint liability guarantee 92025 2025 2026.1.28 No Yes
December October 27
Ningbo ZJPC 9879.92 Joint liability 92025 5030600 2025 guarantee 2026.3.20 No Yes
December November
Ningbo ZJPC 5030600 18097.20 Joint liability 92025 26 2025 guarantee
2026.4.3 No Yes
December December 3
Ningbo ZJPC 5030600 14300 Joint liability 92025 2025 guarantee
2026.2.14 No Yes
104 / 275Full content of 2025 Annual Report
December December 5
Ningbo ZJPC 5030600 17030.08 Joint liability 92025 2025 guarantee
2026.2.25 No Yes
December September
Ningbo ZJPC 5030600 5555.56 Joint liability 92025 25 2025 guarantee 2026.3.20 No Yes
December September
Ningbo ZJPC 92025 5030600
5555.56 Joint liability
25 2025 guarantee 2026.6.20 No Yes
December September
Ningbo ZJPC 92025 5030600
5555.56 Joint liability
25 2025 guarantee 2026.9.20 No Yes
December September
Ningbo ZJPC 5555.56 Joint liability 92025 5030600 25 2025 guarantee 2026.12.20 No Yes
Ningbo ZJPC December 5030600 September 5555.56 Joint liability 92025 25 2025 guarantee
2027.3.20 No Yes
Ningbo ZJPC December 5030600 September 5555.56 Joint liability 92025 25 2025 guarantee
2027.6.20 No Yes
Ningbo ZJPC December 92025 5030600
September 5555.56 Joint liability
25 2025 guarantee 2027.9.20 No Yes
Ningbo ZJPC December 92025 5030600
September 5555.56 Joint liability
25 2025 guarantee 2027.10.25 No Yes
Ningbo ZJPC December 5030600 February 25 36000 Joint liability guarantee 92025 2025 2026.2.25 No Yes
Ningbo ZJPC December March 4 38000 Joint liability 92025 5030600 2025 guarantee 2026.3.4 No Yes
December April 24
Ningbo ZJPC 92025 5030600
35000 Joint liability
2025 guarantee 2026.4.24 No Yes
December
Ningbo ZJPC 92025 5030600
May 14 2025 41000 Joint liability guarantee 2026.5.14 No Yes
December January 22
Ningbo ZJPC 92025 5030600
11000 Joint liability
2025 guarantee 2026.1.22 No Yes
December January 23
Ningbo ZJPC 5030600 9000 Joint liability 92025 2025 guarantee
2026.1.23 No Yes
105 / 275Full content of 2025 Annual Report
December March 14
Ningbo ZJPC 92025 5030600
27000 Joint liability
2025 guarantee
2026.3.14 No Yes
December March 25
Ningbo ZJPC 92025 5030600
38310 Joint liability
2025 guarantee 2026.3.25 No Yes
December April 15
Ningbo ZJPC 5030600 19000 Joint liability guarantee 92025 2025 2026.4.14 No Yes
December
Ningbo ZJPC 5030600 July 24 2025 32300 Joint liability 92025 guarantee
2026.7.24 No Yes
December August 5
Ningbo ZJPC 93390 Joint liability 92025 5030600 2025 guarantee 2026.8.5 No Yes
Ningbo ZJPC December 92025 5030600
November 36000 Joint liability
11 2025 guarantee
2026.11.11 No Yes
Ningbo ZJPC December 5030600 December 4 10000 Joint liability guarantee 92025 2025 2026.12.4 No Yes
Ningbo ZJPC December 5030600 December 16 30000 Joint liability guarantee 92025 2025 2026.12.16 No Yes
Ningbo ZJPC December November 3400 Joint liability 92025 5030600 17 2025 guarantee 2026.11.17 No Yes
Yisheng December
Dahua 92025 5030600
January 26 18600 Joint liability
2025 guarantee
2026.1.16 No Yes
Yisheng December
Dahua 92025 5030600
February 5 11600 Joint liability guarantee 2025 2026.1.26 No Yes
Yisheng December June 25 2025 6204.09 Joint liability
Dahua 92025 5030600 guarantee 2026.6.24 No Yes
Yisheng December June 26 2025 10408.68 Joint liability
Dahua 92025 5030600 guarantee 2026.6.25 No Yes
Yisheng December
5030600 July 11 2025 3303.78 Joint liability Dahua 92025 guarantee 2026.7.9 No Yes
Yisheng December
5030600 July 15 2025 8600 Joint liability Dahua 92025 guarantee
2026.7.14 No Yes
106 / 275Full content of 2025 Annual Report
Yisheng December
5030600 July 18 2025 8000 Joint liability Dahua 92025 guarantee
2026.7.17 No Yes
Yisheng December
Dahua 92025 5030600
May 22 2025 3190 Joint liability guarantee 2028.5.22 No Yes
Yisheng December
5030600 May 28 2025 5810 Joint liability Dahua 92025 guarantee
2028.5.22 No Yes
Yisheng December
5030600 May 22 2025 2000 Joint liability guarantee Dahua 92025 2026.6.21 No Yes
Yisheng December June 10 2025 2000 Joint liability
Dahua 92025 5030600 guarantee 2026.12.21 No Yes
Yisheng December
Dahua 92025 5030600
June 10 2025 3500 Joint liability guarantee 2028.6.9 No Yes
Yisheng December June 12 2025 12417 Joint liability
Dahua 92025 5030600 guarantee 2028.6.9 No Yes
Yisheng December 5030600 June 19 2025 6515.33 Joint liability Dahua 92025 guarantee 2028.6.9 No Yes
Yisheng December August 27 1252.69 Joint liability
Dahua 92025 5030600 2025 guarantee 2030.8.27 No Yes
Yisheng December
Dahua 92025 5030600
September 365.35 Joint liability guarantee 10 2025 2030.8.27 No Yes
Yisheng December
Dahua 92025 5030600
September 31.5 Joint liability guarantee 26 2025 2030.8.27 No Yes
Yisheng December October 23 150.33 Joint liability
Dahua 92025 5030600 2025 guarantee 2030.8.27 No Yes
Yisheng December October 30
5030600 28.4 Joint liability Dahua 92025 2025 guarantee
2030.8.27 No Yes
Yisheng December November 324.35 Joint liability
Dahua 92025 5030600 20 2025 guarantee 2030.8.27 No Yes
Yisheng December November 116 Joint liability
Dahua 92025 5030600 27 2025 guarantee 2030.8.27 No Yes
107 / 275Full content of 2025 Annual Report
Yisheng December December 19
5030600 7105.46 Joint liability Dahua 92025 2025 guarantee
2030.8.27 No Yes
Yongsheng December
5030600 May 24 2022 2370 Joint liability Technology 92025 guarantee 2026.6.15 No Yes
Yongsheng December May 24 2022 2369 Joint liability
Technology 92025 5030600 guarantee 2026.12.15 No Yes
Yongsheng December October 14
5030600 436.92 Joint liability Technology 92025 2022 guarantee
2026.6.15 No Yes
Yongsheng December October 14 436.89 Joint liability
Technology 92025 5030600 2022 guarantee 2026.12.15 No Yes
Yongsheng December 5030600 September 874 Joint liability Technology 92025 26 2023 guarantee
2026.6.15 No Yes
Yongsheng December
Technology 92025 5030600
September 872 Joint liability
26 2023 guarantee 2026.12.15 No Yes
Yongsheng December June 6 2022 2635.04 Joint liability
Technology 92025 5030600 guarantee 2026.5.15 No Yes
Yongsheng December 5030600 June 6 2022 2635.04 Joint liability Technology 92025 guarantee
2026.11.16 No Yes
Yongsheng December 5030600 June 6 2022 2635.04 Joint liability Technology 92025 guarantee
2027.5.17 No Yes
Yongsheng December 5030600 June 6 2022 2635.04 Joint liability Technology 92025 guarantee 2027.11.15 No Yes
Yongsheng December June 6 2022 2635.04 Joint liability
Technology 92025 5030600 guarantee 2028.5.15 No Yes
Yongsheng December
5030600 June 6 2022 2635.04 Joint liability Technology 92025 guarantee 2028.11.15 No Yes
Yongsheng December June 6 2022 2635.04 Joint liability
Technology 92025 5030600 guarantee 2029.5.15 No Yes
Yongsheng December June 6 2022 2635.04 Joint liability
Technology 92025 5030600 guarantee 2029.11.15 No Yes
108 / 275Full content of 2025 Annual Report
Yongsheng December
5030600 June 6 2022 2635.04 Joint liability Technology 92025 guarantee 2030.5.15 No Yes
Yongsheng December June 6 2022 2635.04 Joint liability
Technology 92025 5030600 guarantee 2030.11.15 No Yes
Yongsheng December June 6 2022 2635.04 Joint liability
Technology 92025 5030600 guarantee 2031.5.15 No Yes
Yongsheng December
5030600 June 6 2022 2635.04 Joint liability Technology 92025 guarantee 2031.11.16 No Yes
Yongsheng December June 6 2022 2635.04 Joint liability
Technology 92025 5030600 guarantee 2032.5.17 No Yes
Yongsheng December June 6 2022 2635.04 Joint liability
Technology 92025 5030600 guarantee
2032.11.15 No Yes
Yongsheng December 5030600 June 6 2022 2635.04 Joint liability Technology 92025 guarantee 2033.5.16 No Yes
Yongsheng December 5030600 July 9 2025 5000 Joint liability Technology 92025 guarantee
2026.7.9 No Yes
Yongsheng December 5030600 July 15 2025 5000 Joint liability guarantee Technology 92025 2026.7.15 No Yes
ZPC December 6260000 July 31 2018 202139.01 Joint liability 92025 guarantee
2030.7.30 No Yes
ZPC December 92025 6260000
August 10 44435.28 Joint liability
2018 guarantee
2030.7.30 No Yes
December March 18
ZPC 92025 6260000
57375 Joint liability
2019 guarantee
2030.7.30 No Yes
December August 3
ZPC 7609.71 Joint liability 92025 6260000 2018 guarantee 2030.7.30 No Yes
December August 9
ZPC 92025 6260000
12496.53 Joint liability guarantee 2018 2030.7.30 No Yes
December August 9
ZPC 6260000 18743.01 Joint liability 92025 2018 guarantee
2030.7.30 No Yes
109 / 275Full content of 2025 Annual Report
December August 10
ZPC 92025 6260000
3249.06 Joint liability
2018 guarantee 2030.7.30 No Yes
December August 10
ZPC 92025 6260000
6247.23 Joint liability
2018 guarantee 2030.7.30 No Yes
December August 13
ZPC 2314.38 Joint liability 92025 6260000 2018 guarantee 2030.7.30 No Yes
December August 16
ZPC 6260000 21988.14 Joint liability 92025 2018 guarantee 2030.7.30 No Yes
December August 15
ZPC 92025 6260000
4630.80 Joint liability
2018 guarantee 2030.7.30 No Yes
ZPC December 6260000 August 31 25500 Joint liability 92025 2018 guarantee
2030.7.30 No Yes
ZPC December 6260000 October 23 38160.75 Joint liability 92025 2018 guarantee
2030.7.30 No Yes
ZPC December 6260000 October 26 6937.02 Joint liability 92025 2018 guarantee
2030.7.30 No Yes
ZPC December 92025 6260000
October 30 3240.13 Joint liability
2018 guarantee 2030.7.30 No Yes
ZPC December 6260000 October 31 13888.83 Joint liability guarantee 92025 2018 2030.7.30 No Yes
ZPC December 6260000 November 7 4409.43 Joint liability 92025 2018 guarantee 2030.7.30 No Yes
December November 8
ZPC 6260000 9023.78 Joint liability 92025 2018 guarantee 2030.7.30 No Yes
December November 8
ZPC 6260000 6713.64 Joint liability 92025 2018 guarantee 2030.7.30 No Yes
December August 3
ZPC 6260000 3264.51 Joint liability 92025 2018 guarantee 2030.7.30 No Yes
December November 9
ZPC 92025 6260000
11012.94 Joint liability
2018 guarantee 2030.7.30 No Yes
110 / 275Full content of 2025 Annual Report
December January 1
ZPC 92025 6260000
16874.37 Joint liability
2019 guarantee 2030.7.30 No Yes
December January 3
ZPC 92025 6260000
11566.29 Joint liability
2019 guarantee 2030.7.30 No Yes
December January 4
ZPC 1851.50 Joint liability 92025 6260000 2019 guarantee 2030.7.30 No Yes
December November 9
ZPC 6260000 4723.62 Joint liability 92025 2018 guarantee
2030.7.30 No Yes
December January 4
ZPC 6260000 8097.78 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 January 8 4397.22 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 January 9 11551.50 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 92025 6260000
January 10 5784.47 Joint liability
2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 January 14 2784.91 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 January 15 8337.48 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 January 30 32841.14 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
December January 31
ZPC 6260000 9261.60 Joint liability 92025 2019 guarantee 2030.7.30 No Yes
December January 30
ZPC 6260000 1388.63 Joint liability 92025 2019 guarantee 2030.7.30 No Yes
December February 1
ZPC 6260000 7622.97 Joint liability 92025 2019 guarantee 2030.7.30 No Yes
December January 4
ZPC 92025 6260000
1852.83 Joint liability
2019 guarantee 2030.7.30 No Yes
111 / 275Full content of 2025 Annual Report
December February 1
ZPC 6260000 4860.81 Joint liability 92025 2019 guarantee 2030.7.30 No Yes
December February 1
ZPC 92025 6260000
3933.44 Joint liability
2019 guarantee 2030.7.30 No Yes
December February 3
ZPC 92025 6260000
16205.25 Joint liability
2019 guarantee 2030.7.30 No Yes
December February 11
ZPC 6260000 2088.68 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
December February 12
ZPC 92025 6260000
3006.45 Joint liability
2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 February 11 12368.52 Joint liability guarantee 92025 2019 2030.7.30 No Yes
ZPC December 92025 6260000
February 27 46920 Joint liability guarantee 2019 2030.7.30 No Yes
ZPC December March 1 5312.67 Joint liability 92025 6260000 2019 guarantee 2030.7.30 No Yes
ZPC December 6260000 February 1 2076.21 Joint liability guarantee 92025 2019 2030.7.30 No Yes
ZPC December 92025 6260000
March 7 3238.50 Joint liability guarantee 2019 2030.7.30 No Yes
ZPC December March 7 8097.78 Joint liability 92025 6260000 2019 guarantee 2030.7.30 No Yes
December March 8
ZPC 92025 6260000
925.75 Joint liability
2019 guarantee
2030.7.30 No Yes
December March 8
ZPC 6260000 2776.55 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
December March 12
ZPC 92025 6260000
2084.37 Joint liability
2019 guarantee 2030.7.30 No Yes
December March 13
ZPC 92025 6260000
1392.45 Joint liability
2019 guarantee 2030.7.30 No Yes
112 / 275Full content of 2025 Annual Report
December March 15
ZPC 6260000 11345.97 Joint liability guarantee 92025 2019 2030.7.30 No Yes
December March 29
ZPC 92025 6260000
18360 Joint liability
2019 guarantee
2030.7.30 No Yes
December
ZPC 6260000 April 8 2019 2310.30 Joint liability 92025 guarantee
2030.7.30 No Yes
December April 10
ZPC 92025 6260000
462.88 Joint liability
2019 guarantee 2030.7.30 No Yes
December April 11
ZPC 92025 6260000
925.8 Joint liability
2019 guarantee 2030.7.30 No Yes
ZPC December 6260000 March 7 1384.14 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 April 11 1622.31 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 92025 6260000
April 12 3938.73 Joint liability
2019 guarantee
2030.7.30 No Yes
ZPC December 92025 6260000
April 12 464.15 Joint liability
2019 guarantee 2030.7.30 No Yes
ZPC December 92025 6260000
April 12 3238.50 Joint liability
2019 guarantee 2030.7.30 No Yes
ZPC December 92025 6260000
April 15 1156.89 Joint liability
2019 guarantee 2030.7.30 No Yes
December
ZPC 6260000 May 1 2019 5082.66 Joint liability 92025 guarantee
2030.7.30 No Yes
December April 11
ZPC 6260000 692.07 Joint liability 92025 2019 guarantee 2030.7.30 No Yes
December
ZPC 6260000 May 7 2019 2590.29 Joint liability 92025 guarantee 2030.7.30 No Yes
December
ZPC 6260000 May 7 2019 17340 Joint liability 92025 guarantee
2030.7.30 No Yes
113 / 275Full content of 2025 Annual Report
December
ZPC 6260000 May 7 2019 5090.82 Joint liability 92025 guarantee 2030.7.30 No Yes
December
ZPC 6260000 May 9 2019 2082.41 Joint liability guarantee 92025 2030.7.30 No Yes
December
ZPC May 10 2019 694.31 Joint liability 92025 6260000 guarantee 2030.7.30 No Yes
December
ZPC 6260000 May 13 2019 1160.38 Joint liability guarantee 92025 2030.7.30 No Yes
December
ZPC 6260000 May 13 2019 1619.51 Joint liability guarantee 92025 2030.7.30 No Yes
ZPC December May 16 2019 7407.24 Joint liability 92025 6260000 guarantee 2030.7.30 No Yes
ZPC December 6260000 June 1 2019 2776.44 Joint liability guarantee 92025 2030.7.30 No Yes
ZPC December 92025 6260000
June 4 2019 8098.26 Joint liability guarantee 2030.7.30 No Yes
ZPC December 6260000 May 7 2019 1108.23 Joint liability 92025 guarantee
2030.7.30 No Yes
ZPC December 6260000 June 5 2019 4630.80 Joint liability 92025 guarantee 2030.7.30 No Yes
ZPC December 6260000 June 5 2019 5783.50 Joint liability 92025 guarantee
2030.7.30 No Yes
December
ZPC 6260000 June 6 2019 2777.26 Joint liability guarantee 92025 2030.7.30 No Yes
December
ZPC 6260000 June 6 2019 35700 Joint liability 92025 guarantee
2030.7.30 No Yes
December
ZPC 6260000 June 6 2019 2320.76 Joint liability 92025 guarantee 2030.7.30 No Yes
December
ZPC 6260000 June 12 2019 13888.83 Joint liability 92025 guarantee
2030.7.30 No Yes
114 / 275Full content of 2025 Annual Report
December
ZPC 6260000 June 20 2019 232.05 Joint liability guarantee 92025 2030.7.30 No Yes
December
ZPC 6260000 July 1 2019 51000 Joint liability 92025 guarantee
2030.7.30 No Yes
December
ZPC July 5 2019 2545.17 Joint liability 92025 6260000 guarantee 2030.7.30 No Yes
December
ZPC 6260000 July 8 2019 925.75 Joint liability guarantee 92025 2030.7.30 No Yes
December
ZPC 6260000 July 8 2019 17850 Joint liability 92025 guarantee
2030.7.30 No Yes
ZPC December July 10 2019 9261.60 Joint liability 92025 6260000 guarantee 2030.7.30 No Yes
ZPC December 6260000 July 10 2019 3016.98 Joint liability guarantee 92025 2030.7.30 No Yes
ZPC December 6260000 July 10 2019 2084.37 Joint liability 92025 guarantee
2030.7.30 No Yes
ZPC December 6260000 June 5 2019 1154.13 Joint liability 92025 guarantee
2030.7.30 No Yes
ZPC December 6260000 July 10 2019 1622.31 Joint liability 92025 guarantee 2030.7.30 No Yes
ZPC December 6260000 July 11 2019 692.07 Joint liability 92025 guarantee
2030.7.30 No Yes
December
ZPC 6260000 July 16 2019 2310.30 Joint liability guarantee 92025 2030.7.30 No Yes
December
ZPC 6260000 July 16 2019 4163.64 Joint liability 92025 guarantee
2030.7.30 No Yes
December
ZPC 6260000 July 31 2019 25456.65 Joint liability 92025 guarantee 2030.7.30 No Yes
December August 2
ZPC 92025 6260000
4627.58 Joint liability
2019 guarantee 2030.7.30 No Yes
115 / 275Full content of 2025 Annual Report
December August 7
ZPC 92025 6260000
2320.76 Joint liability
2019 guarantee 2030.7.30 No Yes
December August 7
ZPC 6260000 5672.22 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
December August 7
ZPC 6260000 3468.51 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
December September
ZPC 92025 6260000
2312.85 Joint liability
23 2019 guarantee 2030.7.30 No Yes
December September
ZPC 6260000 1856.40 Joint liability 92025 23 2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 September 44370 Joint liability guarantee 92025 29 2019 2030.7.30 No Yes
ZPC December September 6945.18 Joint liability 92025 6260000 30 2019 guarantee 2030.7.30 No Yes
ZPC December 92025 6260000
August 7 2433.72 Joint liability
2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 October 9 2425.56 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 October 21 6713.64 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 October 21 4388.55 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
December October 29
ZPC 6260000 26520 Joint liability 92025 2019 guarantee 2030.7.30 No Yes
December November
ZPC 6260000 5793.09 Joint liability guarantee 92025 15 2019 2030.7.30 No Yes
December October 9
ZPC 6260000 1041.42 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
December November
ZPC 92025 6260000
1945.65 Joint liability
18 2019 guarantee 2030.7.30 No Yes
116 / 275Full content of 2025 Annual Report
December November
ZPC 92025 6260000
830.79 Joint liability
19 2019 guarantee
2030.7.30 No Yes
December November
ZPC 6260000 74970 Joint liability 92025 21 2019 guarantee
2030.7.30 No Yes
December December 18
ZPC 6260000 1939.53 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
December December 19
ZPC 6260000 3238.50 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
December December 24
ZPC 6260000 3476.67 Joint liability 92025 2019 guarantee
2030.7.30 No Yes
ZPC December 6260000 January 16 4397.22 Joint liability 92025 2020 guarantee 2030.7.30 No Yes
ZPC December 6260000 January 16 2546.43 Joint liability 92025 2020 guarantee
2030.7.30 No Yes
ZPC December 92025 6260000
January 16 1366.29 Joint liability guarantee 2020 2030.7.30 No Yes
ZPC December 92025 6260000
January 16 6713.64 Joint liability guarantee 2020 2030.7.30 No Yes
ZPC December January 16 1410.15 Joint liability 92025 6260000 2020 guarantee 2030.7.30 No Yes
ZPC December 92025 6260000
February 14 1614.46 Joint liability guarantee 2020 2030.7.30 No Yes
December February 18
ZPC 6260000 470.22 Joint liability 92025 2020 guarantee
2030.7.30 No Yes
December March 16
ZPC 6260000 3006.45 Joint liability 92025 2020 guarantee 2030.7.30 No Yes
December March 19
ZPC 6260000 4629.27 Joint liability guarantee 92025 2020 2030.7.30 No Yes
December March 31
ZPC 92025 6260000
10200 Joint liability
2020 guarantee 2030.7.30 No Yes
117 / 275Full content of 2025 Annual Report
December
ZPC 92025 6260000
April 1 2020 16575 Joint liability guarantee 2030.7.30 No Yes
December April 17
ZPC 6260000 1154.13 Joint liability 92025 2020 guarantee
2030.7.30 No Yes
December April 17
ZPC 6260000 1622.31 Joint liability 92025 2020 guarantee
2030.7.30 No Yes
December
ZPC 6260000 May 13 2020 2040 Joint liability 92025 guarantee
2030.7.30 No Yes
December
ZPC June 3 2020 2776.44 Joint liability 92025 6260000 guarantee 2030.7.30 No Yes
ZPC December 92025 6260000
June 5 2020 2776.44 Joint liability guarantee 2030.7.30 No Yes
ZPC December July 4 2023 9164.13 Joint liability 92025 6260000 guarantee 2027.3.15 No Yes
ZPC December 6260000 January 20 69660 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
ZPC December 6260000 January 20 20382 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
ZPC December 6260000 January 20 77400 Joint liability 92025 2021 guarantee 2032.11.15 No Yes
ZPC December 92025 6260000
January 20 258000 Joint liability
2021 guarantee 2032.11.15 No Yes
December January 20
ZPC 6260000 113004 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
December January 20
ZPC 6260000 22394.40 Joint liability 92025 2021 guarantee 2032.11.15 No Yes
December January 20
ZPC 6260000 7740 Joint liability 92025 2021 guarantee 2032.11.15 No Yes
December January 21
ZPC 92025 6260000
29412 Joint liability
2021 guarantee 2032.11.15 No Yes
118 / 275Full content of 2025 Annual Report
December January 21
ZPC 92025 6260000
51600 Joint liability
2021 guarantee 2032.11.15 No Yes
December January 21
ZPC 92025 6260000
51600 Joint liability
2021 guarantee 2032.11.15 No Yes
December January 21
ZPC 10320 Joint liability 92025 6260000 2021 guarantee 2032.11.15 No Yes
December January 22
ZPC 6260000 29412 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
December February 4
ZPC 6260000 49020 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
ZPC December 6260000 February 5 38700 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
ZPC December 6260000 February 5 36120 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
ZPC December 92025 6260000
February 5 15480 Joint liability
2021 guarantee
2032.11.15 No Yes
ZPC December 92025 6260000
February 5 51600 Joint liability
2021 guarantee 2032.11.15 No Yes
ZPC December 6260000 February 5 95460 Joint liability guarantee 92025 2021 2032.11.15 No Yes
ZPC December 6260000 February 5 58824 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
December February 7
ZPC 6260000 29412 Joint liability 92025 2021 guarantee 2032.11.15 No Yes
December March 18
ZPC 92025 6260000
10836 Joint liability
2021 guarantee 2032.11.15 No Yes
December March 18
ZPC 6260000 18390.24 Joint liability 92025 2021 guarantee 2032.11.15 No Yes
December March 19
ZPC 25800 Joint liability 92025 6260000 2021 guarantee 2032.11.15 No Yes
119 / 275Full content of 2025 Annual Report
December March 19
ZPC 6260000 30960 Joint liability 92025 2021 guarantee 2032.11.15 No Yes
December March 22
ZPC 92025 6260000
51600 Joint liability
2021 guarantee
2032.11.15 No Yes
December March 22
ZPC 51600 Joint liability 92025 6260000 2021 guarantee 2032.11.15 No Yes
December March 25
ZPC 6260000 25800 Joint liability 92025 2021 guarantee 2032.11.15 No Yes
December March 26
ZPC 92025 6260000
129000 Joint liability
2021 guarantee 2032.11.15 No Yes
ZPC December 6260000 March 26 41280 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
ZPC December 6260000 April 28 15480 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
ZPC December 92025 6260000
April 28 67080 Joint liability
2021 guarantee
2032.11.15 No Yes
ZPC December 92025 6260000
April 28 31992 Joint liability
2021 guarantee 2032.11.15 No Yes
ZPC December 6260000 April 28 25800 Joint liability 92025 2021 guarantee
2032.11.15 No Yes
ZPC December 6260000 April 28 15996 Joint liability 92025 2021 guarantee 2032.11.15 No Yes
December April 29
ZPC 6260000 41280 Joint liability 92025 2021 guarantee 2032.11.15 No Yes
December April 30
ZPC 92025 6260000
2580 Joint liability
2021 guarantee 2032.11.15 No Yes
December April 30
ZPC 92025 6260000
2580 Joint liability
2021 guarantee 2032.11.15 No Yes
December
ZPC 6260000 June 29 2021 51600 Joint liability 92025 guarantee
2032.11.15 No Yes
120 / 275Full content of 2025 Annual Report
December
ZPC 6260000 July 5 2021 170280 Joint liability 92025 guarantee 2032.11.15 No Yes
December
ZPC 6260000 July 5 2021 25800 Joint liability 92025 guarantee
2032.11.15 No Yes
December
ZPC July 6 2021 20640 Joint liability 92025 6260000 guarantee 2032.11.15 No Yes
December
ZPC 6260000 July 6 2021 36120 Joint liability 92025 guarantee
2032.11.15 No Yes
December
ZPC July 6 2021 74820 Joint liability 92025 6260000 guarantee 2032.11.15 No Yes
ZPC December 92025 6260000
July 6 2021 74820 Joint liability guarantee 2032.11.15 No Yes
ZPC December 92025 6260000
July 6 2021 77400 Joint liability guarantee 2032.11.15 No Yes
ZPC December 6260000 July 6 2021 154800 Joint liability 92025 guarantee
2032.11.15 No Yes
ZPC December 6260000 July 6 2021 20640 Joint liability 92025 guarantee
2032.11.15 No Yes
ZPC December 92025 6260000
September 52095.36 Joint liability
15 2021 guarantee 2032.11.15 No Yes
ZPC December 6260000 September 20640 Joint liability 92025 17 2021 guarantee
2032.11.15 No Yes
December September
ZPC 20124 Joint liability 92025 6260000 17 2021 guarantee 2032.11.15 No Yes
December September
ZPC 6260000 41280 Joint liability guarantee 92025 17 2021 2032.11.15 No Yes
December September
ZPC 92025 6260000
105780 Joint liability
17 2021 guarantee
2032.11.15 No Yes
December September
ZPC 6260000 17028 Joint liability 92025 22 2021 guarantee
2032.11.15 No Yes
121 / 275Full content of 2025 Annual Report
December
ZPC 6260000 June 13 2022 8256 Joint liability 92025 guarantee
2032.11.15 No Yes
December
ZPC 6260000 July 11 2022 175.44 Joint liability 92025 guarantee
2032.11.15 No Yes
December August 2
ZPC 92025 6260000
113.52 Joint liability
2022 guarantee
2032.11.15 No Yes
December August 4
ZPC 6260000 196.08 Joint liability 92025 2022 guarantee
2032.11.15 No Yes
December August 9
ZPC 92025 6260000
61.92 Joint liability
2022 guarantee
2032.11.15 No Yes
ZPC December 6260000 August 10 7.74 Joint liability 92025 2022 guarantee
2032.11.15 No Yes
ZPC December 6260000 September 5 265.74 Joint liability 92025 2022 guarantee
2032.11.15 No Yes
ZPC December 6260000 October 10 211.56 Joint liability 92025 2022 guarantee
2032.11.15 No Yes
ZPC December 92025 6260000
November 1 227.04 Joint liability guarantee 2022 2032.11.15 No Yes
ZPC December 6260000 December 16 36.12 Joint liability guarantee 92025 2022 2032.11.15 No Yes
ZPC December December 27 4128 Joint liability 92025 6260000 2022 guarantee 2032.11.15 No Yes
December November 2
ZPC 6260000 9.05 Joint liability 92025 2021 guarantee 2026.1.1 No Yes
December November
ZPC 92025 6260000
0.42 Joint liability
18 2021 guarantee 2026.1.1 No Yes
Total limits of guarantees to Total balance of guarantees
subsidiaries approved at the end actually provided to 11290600
of the reporting period (B3) subsidiaries at the end of the
5353534.70
reporting period (B4)
Guarantees of a subsidiary to its subsidiaries
122 / 275Full content of 2025 Annual Report
Date of
Name of disclosure of Actual Actual Counter- If the Whether to
guarantee announcement Guarantee relating to limit occurrence guarantee
Guarantee Collateral (if guarantee Guarantee guarantee provide
object date amount type any) situation period has been guarantee for guarantee (if any) performed related party
limit
Yisheng December 9 Joint liability 17000 2027.7.23 No Yes
Dahua 2025 89000 July 24 2025 guarantee
Yisheng December 9 89000 Joint liability July 24 2025 1000 guarantee 2026.6.21 No Yes Dahua 2025
Yisheng December 9 89000 Joint liability July 24 2025 1000 guarantee 2026.12.21 No Yes Dahua 2025
Total limits of guarantees to Total balance of guarantees
subsidiaries approved at the end 89000 actually provided to subsidiaries at the end of the 19000 of the reporting period (C3) 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 actually provided at the end of 11379600 the reporting period 5372534.70 reporting period (A3+B3+C3) (A4+B4+C4)
Proportion of total amount of guarantees (i.e. A4+B4+C4) in net
assets of the Company 123.24%
Of which:
Description of the specific situation when using composite guarantee
123 / 275Full content of 2025 Annual Report
3. Situation of others entrusted for cash asset management
(1) Entrusted asset management
□ Applicable R Not applicable
The Company had no entrusted asset management during the reporting period.
(2) Entrusted loans
□ Applicable R Not applicable
The Company had no entrusted loans during the reporting period.
4. Other major contracts
□ Applicable R Not applicable
No other major contracts of the Company during the reporting period.XVI. Use of raised funds
□ Applicable R Not applicable
The Company had no use of raised funds during the reporting period.XVII. Explanation of other major matters
□ Applicable R Not applicable
No other important events to be described during the reporting period.XVIII. Major Events of Subsidiaries
□ Applicable RNot applicable
124 / 275Full content of 2025 Annual Report
Section VI Changes in Shares and Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before the change Increase or decrease (+ -) After this change
Conversi
on of
Issuanc
Number Ratio e of new Bonus capital Subtoshares reserves Others tal Number Ratio shares into
shares
I. Restricted shares 6272437 6.19% 241312 2413 651375050 50 1250 00 6.52%
1. State-owned shares
2. Shares held by
state-owned legal
persons
3. Shares held by 6272437
other domestic capital 50 6.19%
24131224136513750
501250006.52%
Including: Shares
held by domestic legal
persons
Shares held by 6272437 6.19% 241312 2413 6513750domestic natural persons 50 50 1250 00 6.52%
4. Shares held by
foreign investors
Including: Shares
held by foreign legal
persons
Shares held by
foreign natural persons
-
II. Shares not subject to 9498281 93.81 -
sales restrictions 250 % 160213
16029338067
9961399254
93.48%
6
-
1. RMB ordinary 9498281 93.81 - 160213 1602 9338067shares 250 % 996 1399 254
93.48%
6
2. Domestically-listed
foreign shares
3. Overseas-listed
foreign shares
4. Others
--
III. Total shares 1012552 100.05000 0% 136082
13609989442100.00
7468274254%6
125 / 275Full content of 2025 Annual Report
Causes for change in shares
R Applicable □ Not applicable
Based on confidence in the Company's future development prospects and recognition of its long-term value and to
promote the reasonable return of the Company's stock price to its long-term intrinsic value from March 15 2022
to August 2 2022 the Company cumulatively repurchased 136082746 shares of the Company through a buyback
special securities account via centralized competitive bidding. The Proposal on the Cancellation of Partially
Repurchased Shares the Reduction of Registered Capital and the Amendment of the "Articles of Association" was
deliberated and approved at the 23rd Meeting of the 6th Board of Directors held on April 24 2025 and the 2024
Annual General Meeting of Shareholders held on May 16 2025 respectively. It was agreed that the aforementioned
shares would be cancelled and the registered capital would be reduced accordingly. For details please refer to the
Announcement on the Completion of the Cancellation of Partially Repurchased Shares and Changes in Shares
(Announcement No.: 2025-040) published in the Securities Times Securities Daily China Securities Journal
Shanghai Securities News and on the CNINFO website (http://www.cninfo.com.cn).Approval of changes in shares
R Applicable □ Not applicable
The Proposal on the Cancellation of Partially Repurchased Shares the Reduction of Registered Capital and the
Amendment of the "Articles of Association" was deliberated and approved at the 23rd Meeting of the 6th Board of
Directors held on April 24 2025 and the 2024 Annual General Meeting of Shareholders held on May 16 2025
respectively. It was agreed that the aforementioned shares would be cancelled and the registered capital would be
reduced accordingly. For details please refer to the Announcement on the Completion of the Cancellation of
Partially Repurchased Shares and Changes in Shares (Announcement No.: 2025-040) published in the Securities
Times Securities Daily China Securities Journal Shanghai Securities News and on the CNINFO website
(http://www.cninfo.com.cn).Transfer of share changes
R Applicable □ Not applicable
During the reporting period the cancellation procedures for the partially repurchased shares of the Company were
completed at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited (CSDC).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
R Applicable □ Not applicable
During the reporting period due to the repurchase of shares by the Company the total share capital of the Company
cumulatively decreased by 136082746 shares. For the impact of the share changes on financial indicators such as
basic earnings per share diluted earnings per share and net assets per share attributable to ordinary shareholders of
the Company for the most recent year and the most recent period please refer to "VI. Key Accounting Data and
Financial Indicators" under "Section II Company Profile and Key Financial Indicators".Other information the company deems necessary or required by the securities regulatory authorities to disclose
□ Applicable R Not applicable
2. Changes in restricted shares
126 / 275Full content of 2025 Annual Report
R Applicable □ Not applicable
Unit: Share
Number of
Increase in Number of
Shareholder Initial Number
Shares
Restricted Released from Restricted Reason for
Date of
Name of Restricted Shares During Restriction Shares at the Restriction Release from Shares the Period During the End of the Restriction
Period Period
These shares
will be released
from lock-up in
The Board of accordance
Supervisors with the Rules
was dissolved for the
and the number Management of
Li Guoqing 72393750 24131250 0 96525000 of shares held Shares Held by
by departing Directors and
supervisors Senior
increased by Management of
24131250. Listed
Companies and
Changes
Therein.Total 72393750 24131250 0 96525000 -- --
II. Securities issuance and listing
1. Issuance of securities (excluding preferred shares) during the reporting period
□ Applicable R 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
R Applicable □ Not applicable
For changes in the total number of shares and shareholder structure of the Company please refer to "I. Changes in
Share Capital" in this section of this report.For changes in the Company's asset and liability structure please refer to "VI. Analysis of Assets and Liabilities" in
"Section III Management Discussion and Analysis" of this report.
3. Existing internal employee shares
□ Applicable R Not applicable
127 / 275Full content of 2025 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 67353 month before 76418 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 55.05% 5499301781 116642047 0 5499301781 Not applicable 0
Ltd. person
Aramco Overseas Overseas legal 10.14% 1012552501 0 0 1012552501
Company B.V. person Not applicable 0
Domestic natural
Li Shuirong 6.44% 643275000 0 482456250 160818750 person Not applicable 0
Hong Kong Securities
Clearing Company Overseas legal 2.17% 216326547 40442418 0 216326547 person Not applicable 0 Limited
128 / 275Full content of 2025 Annual Report
Domestic natural
Li Guoqing 0.97% 96525000 0 96525000 0 person Not applicable 0
Domestic natural
Xu Yuejuan 0.97% 96525000 0 0 96525000 person Not applicable 0
Domestic natural
Li Yongqing 0.97% 96525000 0 72393750 24131250 person Not applicable 0
Horizon Asset -
Huaneng
Trust · Jiayue No. 7
Single Fund Trust - Other 0.55% 55148287 0 0 55148287 Not applicable 0
Horizon Asset Huixin
No. 43 Single Asset
Management Plan
Hua'neng Guicheng
Trust Co. Ltd. -
Hua'neng
Other 0.50% 50078500 0 0 50078500 Trust · Rongyue Not applicable 0
Weicheng collective
funds trust plan
Industrial and
Commercial Bank of
China Limited –
Huatai-PineBridge Other 0.50% 49570951 -2933800 0 49570951 CSI 300 Exchange Not applicable 0
Traded Open-End
Index Securities
Investment Fund
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 act in concert.
129 / 275Full content of 2025 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 417150112 shares in the special securities account accounting
shareholders (if any) (see Note 10) for 4.18% 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)
Number of shares not subject to sales restrictions held Class of shares
Name of shareholders at the end of the reporting period Class of shares Number
Zhejiang Rongsheng Holding Group Co. Ltd. 5499301781 RMB ordinary shares 5499301781
Aramco Overseas Company B.V. 1012552501 RMB ordinary shares 1012552501
Hong Kong Securities Clearing Company Limited 216326547 RMB ordinary shares 216326547
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 55148287
Horizon Asset Huixin No. 43 Single Asset Management Plan RMB ordinary shares
Hua'neng Guicheng Trust Co. Ltd. - Hua'neng Trust · Rongyue 50078500 RMB ordinary shares 50078500 Weicheng collective funds trust plan
Industrial and Commercial Bank of China Limited – Huatai-
PineBridge CSI 300 Exchange Traded Open-End Index Securities 49570951 RMB ordinary shares 49570951
Investment Fund
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 5459301781 shares through an ordinary account and 40000000
margin trading (if any) (see Note 4) shares through a margin account. Dai Deming holds 2000000 shares through an ordinary account and 46000000 shares through a margin account.
130 / 275Full content of 2025 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 R 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 R 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 R 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 er 13 79338631 fuel oil (excluding finished oil) photovoltaic products Holding Group Co. Ltd. Li Shuirong 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 55.05% of shares of the Company and
have controlled and held 29.08% of shares of Ningbo United Group Co. Ltd. respectively as their actual controller.shares during the reporting
period
Change of controlling shareholder during the reporting period
□ Applicable R 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
131 / 275Full content of 2025 Annual Report
Type of actual controller: natural person
Name of the actual Relationship with actual Obtaining the right of residence in
controller controller Nationality 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 55.05% of shares of the Company and 29.08% of shares of Ningbo United Group Co. Ltd.years respectively as their controlling shareholder therefore Li Shuirong is their actual controller.Changes in actual controller during the reporting period
□ Applicable R Not applicable
There was no change in the actual controller of the Company during the reporting period.Block diagram for the property and control relations between the Company and its actual controller
Li Shuirong
63.523%
Zhejiang Rongsheng Holding 6.44%
Group Co. Ltd.
55.05%
Rongsheng Petrochemical
Co. Ltd.Block diagram for the property and control relations between the Company and its actual controller
□ Applicable R 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 R Not applicable
5. Other legal shareholders holding more than 10 % of the shares
RApplicable □ Not applicable
Name of corporate Legal representative/person Date of Main business or shareholder -in-charge establishment
Registered capital management activities
Service providers internal
Aramco Overseas Mazin Mohammed M November 4
Company B.V. Dabbagh 1948 EUR 17907127251
banks and holding
companies are mainly
responsible for Saudi
132 / 275Full content of 2025 Annual Report
Aramco's procurement and
other services.
6. Restricted reduction of shares by controlling shareholders actual controllers restructuring parties and
other committed subjects
□ Applicable R Not applicable
IV. Specific implementation of share repurchase during the reporting period
Implementation progress of share repurchase
RApplicable □ Not applicable
Proportion
of the
number of
Disclos shares Number of Proportio Proposed
ure repurchase Proposed
Number of repurchased
time of shares to be n to total
Repurchase shares to the
the repurchased share
amount repurchase purpose repurchased underlying
scheme (shares) capital
(RMB period
10000) (shares) shares involved in
the equity
incentive
plan (if any)
For cancellation
and reduction of
the company's
registered
45454500 RMB 1 billion
Within 12 capital
(inclusive) months from the (originally for
March shares - 0.45%- and not more date of approval convertible
16 2022 90909100 of this corporate bonds 136082746 0.00% shares (all 0.90% than RMB 2
inclusive) billion
repurchase plan or employee
(inclusive) by the board of stock ownership Directors plans issued by
listed
companies for
conversion into
stocks)
Convertible
Within 12 corporate bonds
50 million RMB 1 billion months from the or employee
August shares-100
(inclusive)
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
83333333 RMB 1.5 Within 12 Convertible
August shares - 0.8230%- billion months from the corporate bonds
22 2023 166666667 1.6460% (inclusive) - date of approval or employee
2692874060.00%
shares (both RMB 3 billion of this stock ownership repurchase plan plans issued by
133 / 275Full content of 2025 Annual Report
inclusive) (inclusive) by the board of listed
Directors companies for
conversion into
stocks
Implementation progress of reducing repurchased shares by centralized competitive bidding
□ Applicable R Not applicable
V. Preferred shares
□ Applicable R Not applicable
The Company does not have preferred shares during the reporting period.
134 / 275Full content of 2025 Annual Report
Section VII Bonds
□Applicable RNot applicable
135 / 275Full content of 2025 Annual Report
Section VIII Financial Reports
I. Audit Report
Type of audit opinions Standard unqualified opinion
Signing date of audit report April 26 2026
Pan-China Certified Public Accountants (Special General
Name of auditor Partnership)
Reference No. of audit report Tianjian No. (2026) 9888
Name of certified public accountants Xu Haihong Xu Cheng
Content of Audit Report
I. Audit Opinions
We audited the financial statements of Rongsheng Petrochemical Co. Ltd. (hereinafter referred to as
"Rongsheng Petrochemical") including the consolidated and parent balance sheets as of December 31 2025 the
consolidated and parent income statements and the consolidated and parent cash flow statements for the year 2025
the consolidated and parent statement of changes in owners’ equity and the notes to the relevant financial statements.We believe that the attached financial statements are prepared in accordance with the Accounting Standards
for Business Enterprises in all major aspects and fairly reflect the consolidated and parent financial status of
Rongsheng Petrochemical as of December 31 2025 as well as the consolidated and parent operating results and
cash flow in 2025.II. Basis for Audit Opinions
We have performed our audit in accordance with the Auditing Standards for Certified Public Accountants of
China. The section "Responsibility of Certified Public Accountant for Auditing Financial Statements" herein further
elaborates our responsibilities under these standards. According to the China Code of Ethics for Certified Public
Accountants No. 1 - Requirements for Independence in Audit and Review of Financial Statements and the Code of
Professional Ethics for Chinese Certified Public Accountants we are independent of Rongsheng Petrochemical and
have fulfilled other responsibilities in terms of professional ethics. We believe that the audit evidence we obtained
is sufficient and appropriate to provide a basis for the audit opinions.III. Key Audit Matters
Key audit matters are those we consider to be the most important for the auditing of financial statements
according to our professional judgment. Those matters are handled in the context that we audit the financial
statements as a whole and form an audit opinion. We do not express a separate opinion on these matters.(I) Revenue recognition
1. Description of matters
See Notes V (26) and VII (40) to the financial statements for relevant information disclosure.The operating revenue of Rongsheng Petrochemical Company mainly comes from the sales of refined oil
products chemical products PTA polyester chips polyester filaments and films. In 2025 the operating revenue of
Rongsheng Petrochemical Company was RMB 308622.32 million. According to the sales contract between
Rongsheng Petrochemical Company and its customers the revenue of sales of goods by Rongsheng Petrochemical
Company is recognized when the customer obtains the control right of the relevant goods.As operating revenue is one of the key performance indicators of Rongsheng Petrochemical Company there
136 / 275Full content of 2025 Annual Report
may be an inherent risk that the management of Rongsheng Petrochemical Company (hereinafter referred to as the
management) may achieve specific objectives or expectations through inappropriate revenue recognition. We
therefore identified revenue recognition as a key audit matter.
2. Audit response
Our audit procedures in relation to revenue recognition mainly include:
(1) Understanding key internal controls related to goodwill impairment evaluating the design of these controls
to confirm whether they have been implemented and testing the operational effectiveness of related internal controls;
(2) Reviewing the sales contract to understand the key contract terms or conditions judging the transaction
essence of related businesses in combination with the business background and evaluating the appropriateness of
revenue recognition methods;
(3) Implementing analysis procedures foroperating revenue and gross profit rate by month product and
customer identifying whether there is significant or abnormal fluctuation and finding out the reasons;
(4) For domestic sales revenue check the supporting documents related to revenue recognition by selected
items including sales contract order sales invoice delivery order logistics record and customer receipt; For export
income obtain electronic port information and verify it with book records and checking supporting documents such
as sales contract export declaration form freight bill of lading sales invoice and shipping receipt record by selected
items;
(5) Combined with the letter of confirmation of accounts receivable the sales amount of the letter of
confirmation of selected items;
(6) Perform cutoff test to check whether revenue is recognized in the appropriate period;
(7) Obtain records of sales returns after the balance sheet date to check for any instances where revenue
recognition criteria are not met as of the balance sheet date;
(8) Checking whether the information related to operating revenue has been properly presented in the financial
statements.(II) Measurement of fixed assets and construction in progress
1. Description of matters
See Notes V (17) V (18) V (19) VII (11) and VII 12 to the financial statements for details of relevant
information disclosure.As of December 31 2025 the fixed assets of Rongsheng Petrochemical is RMB 259757528500 mainly
including the machinery and equipment used for the production of petroleum refining-products and the appropriate
plants constructed. Such fixed assets are included in the fixed assets accounting when they reach the scheduled
serviceable condition and the depreciation is accrued by the straight-line method over the expected service life.As of December 31 2025 the book value of construction in progress of Rongsheng Petrochemical was RMB
37854167700 mainly including high-performance resin projects high-end new material projects and Jintang new
material project etc. The construction in progress of Rongsheng Petrochemical is measured at the actual cost
including construction cost installation cost borrowing cost qualified for capitalization and other necessary
expenses incurred to make the construction in progress ready for intended use including engineering design
supervision cost consultation and other expenses.The Management's judgment on the following aspects will have an impact on the book value of fixed assets
and construction in progress and the depreciation policy of fixed assets including determination of expenses
qualified for capitalization determination of the time points when the construction in progress is transferred into
fixed assets and when the depreciation gets started; and estimate of the useful economic life and the residual value
of appropriate fixed assets.As evaluation of the book value of fixed assets and construction in progress involves significant Management
137 / 275Full content of 2025 Annual Report
judgment with great impact on the consolidated financial statements we determine the measurement and
identification of fixed assets and construction in progress as key audit matters.
2. Audit response
Our audit procedures in relation to the measurement of fixed assets and construction in progress mainly include:
(1) Understanding the key internal controls related to fixed assets and construction in progress evaluating the
design of these controls to confirm whether they have been implemented and testing the operational effectiveness
of relevant internal controls;
(2) Checking the new construction in progress by selected items judging whether the above investment is
qualified for capitalization conducting a spot check of the new construction and installation costs with the
significant amount this year checking the relevant project contracts and checking the actual payment amount
against the invoice and payment voucher;
(3) Obtaining the loan contract and reviewing the accuracy and completeness of the capitalized interest
confirmation in combination with the investment in construction in progress;
(4) Inspecting the construction site learning about and evaluating the project progress and judging whether
there is any significant deviation from the Company's book;
(5) Confirming the time point when construction in progress is carried forward to fixed assets and confirm the
accuracy of such time point in combination with the on-site supervision and acceptance report of fixed assets;
(6) Evaluating the reasonableness of the depreciation method of fixed assets and reviewing the reasonableness
of depreciation provision on this basis;
(7) Checking whether the information related to fixed assets and construction in progress has been properly
presented in the financial statements.IV. Other Information
Management is responsible for other information. Other information includes information covered in the
annual report but does not include the financial statements and our audit reports.Our audit opinions on the financial statements do not cover other information nor do we issue any form of
authentication conclusion on other information.In connection with our audit of the financial statements our responsibility is to read other information. In the
process we consider whether there are material inconsistencies or appear to be material misstatements with the
financial statements or what we have learned during the audit.Based on the work that we have already done if we determine that other information contains a material
misstatement we are obliged to report truthfully. We have nothing to report in this regard.V. Responsibility of the Management and those charged with Governance for Financial Statements
The Management is responsible for preparing the financial statements in accordance with the requirements of
Accounting Standards for Business Enterprises to achieve a fair presentation and designing implementing and
maintaining internal control that is necessary to ensure that the financial statements are free from material
misstatements whether due to frauds or errors.In preparing the financial statements the Management is responsible for assessing Rongsheng Petrochemical's
ability to continue as a going concern disclosing matters related to going concern (if applicable) and using the going
concern basis of accounting unless the Management either intends to liquidate Rongsheng Petrochemical or to cease
its operations or has no realistic alternative but to do so.Those charged with governance of Rongsheng Petrochemical (hereinafter referred to as the Governance) is
responsible for overseeing the financial reporting process of Rongsheng Petrochemical.VI. Responsibilities of Certified Public Accountants for the Audit of Financial Statements
138 / 275Full content of 2025 Annual Report
Our goal is to obtain reasonable assurance as to whether there is no material misstatement in the financial
statements as a whole due to fraud or error and to issue an audit report containing audit opinions. Reasonable
assurance is of a high level but it is not a guarantee that an audit conducted in accordance with auditing standards
is always able to detect a material misstatement when it exists. Misstatements may be caused by fraud or error and
are often considered significant if it is reasonably anticipated that the misstatements alone or in aggregate may affect
the economic decisions made by users of the financial statements on the basis of the financial statements.In the process of the audit performed in accordance with auditing standards we have applied professional
judgments and maintained professional skepticism. Meanwhile we also execute the following work:
(I) Identify and assess risks of material misstatement of financial statements due to frauds or errors design and
implement audit procedures to address these risks and obtain adequate and appropriate audit evidence as a basis for
expressing audit opinions. Since fraud may involve collusion forgery deliberate omission misrepresentation or
overstepping internal control the risk of failing to find material misstatements due to fraud is higher than the risk
of failing to find material misstatements due to error.(II) Understand internal control related to audit so as to design proper audit procedures.(III) Evaluate the appropriateness of the accounting policy selected by the Management and the rationality of
making accounting estimates and relevant disclosures.(IV) Draw conclusions on the appropriateness of the going concern assumption used by the Management. In
addition based on the audit evidence obtained a conclusion is drawn as to whether there is any material uncertainty
existing in the matters or situations that may lead to major doubts about the going concern ability of Rongsheng
Petrochemical. If we conclude that there is material uncertainty the auditing standards require us to draw the
statement user's attention in the audit report to relevant disclosures in the financial statements; and if the disclosure
is inadequate we shall give non-unqualified opinions. Our conclusion is made as per the information available as
of the audit report date. However future events or circumstances may prevent Rongsheng Petrochemical from
continuing as a going concern.(V) We have evaluated the overall presentation structure and contents of financial statements and assessed
whether the financial statements fairly reflected relevant transactions and matters.(VI) We have obtained sufficient and appropriate audit evidence on the financial information of entities or
business activities of Rongsheng Petrochemical to express our opinions on the financial statements. We are
responsible for guiding supervising and implementing the group audit and taking full responsibility for the audit
opinions.We have communicated with the Governance on the planned audit scope timing and major audit findings
including the noteworthy deficiencies in internal control identified by us in the audit.We also provide a statement to the Governors that we have complied with the professional ethics requirements
related to our independence and communicate with the Governors all relationships and other matters that may
reasonably be considered to affect our independence as well as relevant preventive measures (if applicable).From the matters on which we communicate with the Governors we determine which matters are the most
important for the audit of the financial statements for the current period and thus constitute the key audit matters.We describe these matters in our audit report and unless laws and regulations prohibit the public disclosure of these
matters or in rare cases if it is reasonably expected that the negative consequence of communicating certain matters
in the audit report will outweigh the benefits in the public interest we determine that such matters shall not be
communicated in the audit report.II. Financial Statements
The amounts in the financial statement notes are presented in RMB.
139 / 275Full content of 2025 Annual Report
1. Consolidated Balance Sheet
Prepared by: Rongsheng Petrochemical Co. Ltd.December 31 2025
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Cash and bank balances 13499669478.84 14833384920.45
Settlement reserve
Loans to other banks
Trading financial assets
Derivative financial assets 278828802.69 475766685.17
Notes receivable
Accounts receivable 3169305362.31 6821971706.36
Accounts receivable financing 83421123.96 103225654.46
Advances paid 2140598833.96 1354519708.48
Premium receivables
Reinsurance receivables
Reinsurance contract reserves receivables
Other receivables 4925104317.10 4345964007.66
Including: Interest receivables
Dividends receivable
Redemptory monetary capital for sale
Inventories 33576127180.92 44566934616.59
Including: data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 7280589936.07 5801152355.65
Total current assets 64953645035.85 78302919654.82
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 9764207212.23 9516636321.17
Investment in other equity instruments
Other non-current financial assets
Investment property 9852682.60 10124128.60
Fixed assets 259757528525.39 232497113015.70
Construction in progress 37854167659.20 44036132096.28
140 / 275Full content of 2025 Annual Report
Productive biological assets
Oil & gas assets
Right-of-use assets 27062072.00 176237821.55
Intangible assets 9085688449.26 8142781094.80
Including: data resources
Development expenses
Including: data resources
Goodwill
Long-term deferred expenses
Deferred income tax assets 1702308467.27 1237176277.28
Other non-current assets 3478664190.30 3926823773.78
Total non-current assets 321679479258.25 299543024529.16
Total assets 386633124294.10 377845944183.98
Current liabilities:
Short-term borrowings 50196656887.59 44090969803.23
Borrowings from the central bank
Loans from other banks
Trading financial liabilities 1269256561.53
Derivative financial liabilities 254957356.99 34655378.23
Notes payable 1823730094.93 3204293497.95
Accounts payable 58958528675.95 59032829819.11
Advance received
Contract liabilities 4083450306.60 5995580462.05
Financial assets sold for repurchase
Deposits received and interbank deposits
Deposits for securities trading agency
Deposits for securities underwriting agency
Employee benefits payable 1125814964.88 996809278.49
Taxes payable 2645167588.84 1277862468.64
Other payables 8699387532.24 6588756879.48
Including: Interests payable
Dividends payable
Handling charges and commissions payable
Reinsurance payable
Held-for-sale liabilities
Non-current liabilities due within one year 35466338269.58 38322495216.94
Other current liabilities 1867329013.92 742351889.84
Total current liabilities 165121360691.52 161555861255.49
Non-current liabilities:
Insurance contract reserves
Long-term borrowings 122459201307.70 119518340862.41
141 / 275Full content of 2025 Annual Report
Bonds payable
Including: Preferred share
Perpetual bond
Lease liabilities 171624458.34
Long-term payables
Long-term employee benefits payable
Estimated liabilities 43782604.66
Deferred income 392706559.60 198629966.29
Deferred income tax liabilities 1624234093.37 1577357341.78
Other non-current liabilities
Total non-current liabilities 124519924565.33 121465952628.82
Total liabilities 289641285256.85 283021813884.31
Owner's equity:
Share capital 9989442254.00 10125525000.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 8958186957.39 10819566635.04
Less: treasury stock 4988804885.93 6987008823.24
Other comprehensive income 86668890.53 280892216.98
Special reserves 55804605.92 19057187.43
Surplus reserves 1270743066.03 1270743066.03
Generic risk reserves
Undistributed profits 28221482065.98 28330397005.41
Total equity attributable to the parent company 43593522953.92 43859172287.65
Minority equity 53398316083.33 50964958012.02
Total equity 96991839037.25 94824130299.67
Total liabilities and owner's equity 386633124294.10 377845944183.98
Legal representative: Li Shuirong Head of accounting work: Wang Yafang Head of accounting body: Zhang Shaoying
2. Balance Sheet of the Parent Company
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Cash and bank balances 354353684.29 682038492.96
Trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 2437530.86 2470580.97
142 / 275Full content of 2025 Annual Report
Accounts receivable financing 17919013.37 7377152.89
Advances paid 60256292.32 153158590.35
Other receivables 2897360297.44 2378142849.26
Including: Interest receivables
Dividends receivable 550000000.00 550000000.00
Inventories 242437960.44 169343856.05
Including: data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 26047627.84
Total current assets 3600812406.56 3392531522.48
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 55647973695.59 48129034147.12
Investment in other equity instruments
Other non-current financial assets
Investment property 9852682.60 10124128.60
Fixed assets 318871916.84 274806084.66
Construction in progress
Productive biological assets
Oil & gas assets
Right-of-use assets
Intangible assets 11853718.31 13461355.78
Including: data resources
Development expenses
Including: data resources
Goodwill
Long-term deferred expenses
Deferred income tax assets
Other non-current assets 2271130.13
Total non-current assets 55988552013.34 48429696846.29
Total assets 59589364419.90 51822228368.77
Current liabilities:
Short-term borrowings 6285794109.03 7055037415.98
Trading financial liabilities
Derivative financial liabilities
Notes payable 52916550.00 575194158.34
Accounts payable 4861762156.96 5205888310.81
143 / 275Full content of 2025 Annual Report
Advance received
Contract liabilities 2646739931.85 710551453.29
Employee benefits payable 80917996.59 53751135.30
Taxes payable 6581447.16 13850759.94
Other payables 10133729308.36 8264563912.00
Including: Interests payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one year 5964831869.33 2788700063.61
Other current liabilities 344076191.14 92371688.93
Total current liabilities 30377349560.42 24759908898.20
Non-current liabilities:
Long-term borrowings 11919757273.07 8399186264.02
Bonds payable
Including: Preferred share
Perpetual bond
Lease liabilities
Long-term payables
Long-term employee benefits payable
Estimated liabilities
Deferred income 6301607.06 7309864.22
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 11926058880.13 8406496128.24
Total liabilities 42303408440.55 33166405026.44
Owner's equity:
Share capital 9989442254.00 10125525000.00
Other equity instruments
Including: Preferred share
Perpetual bond
Capital reserve 9381253530.14 11243374721.45
Less: treasury shares 4988804885.93 6987008823.24
Other comprehensive income 104810451.40 217617723.95
Special reserves
Surplus reserves 1270743066.03 1270743066.03
Undistributed profits 1528511563.71 2785571654.14
Total equity 17285955979.35 18655823342.33
Total liabilities and owner’s equity 59589364419.90 51822228368.77
3. Consolidated Income Statement
144 / 275Full content of 2025 Annual Report
Unit: RMB
Item 2025 2024
I. Gross operating revenue 308622318229.03 326475162608.88
Including: operating revenue 308622318229.03 326475162608.88
Interest income
Earned premium
Handling charge and commission income
II. Gross operating costs 306889801875.36 327290632772.57
Including: operating costs 270923586738.95 288990543880.55
Interest expense
Handling charge and commission expenses
Surrender value
Net payments for insurance claims
Net provision for insurance contract liabilities
Policy dividend payment
Reinsurance costs
Taxes and surcharges 24180177418.06 24897439763.47
Selling expenses 192006678.56 193112300.81
Administrative expenses 987716003.24 976713694.79
R&D expenses 4989246863.51 5101483285.60
Financial expenses 5617068173.04 7131339847.35
Including: interest expenses 5829240571.07 7077035657.42
Interest income 410236488.43 544687994.07
Add: Other income 1256727225.03 2871905081.83
Investment income (losses expressed with "-") 717293296.00 163033295.85
Including: Return on investment in associated 202015047.93 244591550.05
enterprises and joint ventures
Gains on derecognition of financial assets
measured at amortized cost
Exchange gains (losses expressed with “-”)
Net exposure hedging gains (losses expressed with “-”)
Gains on changes in fair value (losses expressed with "-") -412236801.77 120298131.43
Credit impairment loss (losses expressed with "-") 240862048.32 -189106251.69
Loss on assets impairment (losses marked with “-”) -219644919.91 -163827403.04
Gains on disposal of assets (losses expressed with “-”) 25060957.68 17440176.91
III. Operating profit (losses expressed with "-") 3340578159.02 2004272867.60
Add: Non-operating income 6845936.52 10470949.91
Less: Non-operating expenses 57252161.46 109027148.89
IV. Total profits (total losses expressed with "-") 3290171934.08 1905716668.62
Less: Income tax expenses 41312639.13 -219603413.29
V. Net profit (net losses expressed with "-") 3248859294.95 2125320081.91
145 / 275Full content of 2025 Annual Report
(I) By business continuity
1. Net profit from going concern (net losses expressed with 3248859294.95 2125320081.91
“-”)
2. Net profit from discontinued operations (net losses
expressed with “-”)
(II) By ownership
1. Net profit attributable to shareholders of the parent 848314274.77 724484686.45
company
2. Minority interest income 2400545020.18 1400835395.46
VI. Other comprehensive income net of tax -198686089.53 168426991.01
After-tax net of other comprehensive income attributable to the -194223326.45 170688350.63
owners of parent company
(I) Other comprehensive income which may not be -590642.24
reclassified to profit or loss
1. Re-measurement of changes in defined benefit plans
2. Other comprehensive income which may not be
transferred to profit or loss under the equity method
3. Changes in fair value of investment in other equity
instruments
4. Changes in fair value of the credit risk of the Company
5. Others -590642.24
(II) Other comprehensive income which may be reclassified -194223326.45 171278992.87
to profit or loss
1. Other comprehensive income which may be transferred -106365882.60 120207167.57
to profit or loss under the equity method
2. Changes in fair value of other creditors investment
3. Amount of financial assets reclassified into other
comprehensive income
4. Provision for credit impairment of other creditors
investments
5. Cash flow hedging reserves
6. Difference in translation of foreign currency financial -87857443.85 51071825.30
statements
7. Others
Other comprehensive income attributable to minority -4462763.08 -2261359.62
shareholders net of tax
VII. Total comprehensive income 3050173205.42 2293747072.92
Total comprehensive income attributable to owners of the 654090948.32 895173037.08
parent company
Total comprehensive income attributable to minority 2396082257.10 1398574035.84
shareholders
VIII. Earnings per share
146 / 275Full content of 2025 Annual Report
(I) Basic earnings per share 0.09 0.08
(II) Diluted earnings per share 0.09 0.08
Legal representative: Li Shuirong Head of accounting work: Wang Yafang Head of accounting body: Zhang Shaoying
4. Income Statement of the Parent Company
Unit: RMB
Item 2025 2024
I.Operating revenue 2636326492.82 2444347399.21
Less: Operating costs 2478013535.23 2369629011.51
Taxes and surcharges 9515408.43 14941864.15
Selling expenses 38809646.99 35432354.53
Administrative expenses 86251756.60 53799008.45
R&D expenses 91332790.35 82619613.45
Financial expenses 816417693.42 784068244.65
Including: interest expenses 809665722.32 837233949.57
Interest income 13227109.41 60929188.85
Add: Other income 350263984.79 1040297788.65
Investment income (losses expressed with "-") 262806946.12 2827800018.74
Including: Return on investment in associated 225401331.67 244101230.58
enterprises and joint ventures
Gains on derecognition of financial assets
measured at amortized cost (loss expressed with "-")
Net exposure hedging gains (losses expressed with “-”)
Gains on changes in fair value (losses expressed with "-")
Credit impairment loss (losses expressed with "-") -1262380.39 2255948.69
Loss on assets impairment (losses marked with “-”) -264876.91 -846863.09
Gains on disposal of assets (losses expressed with “-”) 8818624.58 -150448.41
II. Operating profits (losses expressed with “-”) -263652040.01 2973213747.05
Add: Non-operating income 8187.15 14902.40
Less: Non-operating expenses 36187023.37 7314435.91
III. Total profits (total losses expressed with “-”) -299830876.23 2965914213.54
Less: Income tax expenses
IV. Net profits (net losses expressed with "-") -299830876.23 2965914213.54
(1) Net profits from going concern (net losses expressed with -299830876.23 2965914213.54
“-”)
(2) Net profits from discontinued operations (net losses
expressed with “-”)
V. Other comprehensive incomes net of tax -112807272.55 137507512.73
(I) Other comprehensive income which may not be -590642.24
reclassified to profit or loss
1. Re-measurement of changes in defined benefit plans
147 / 275Full content of 2025 Annual Report
2. Other comprehensive income which may not be
transferred to profit or loss under the equity method
3. Changes in fair value of investment in other equity
instruments
4. Changes in fair value of the credit risk of the Company
5. Others -590642.24
(II) Other comprehensive income which may be reclassified -112807272.55 138098154.97
to profit or loss
1. Other comprehensive income which may be transferred -112807272.55 138098154.97
to profit or loss under the equity method
2. Changes in fair value of other creditors investment
3. Amount of financial assets reclassified into other
comprehensive income
4. Provision for credit impairment of other creditors
investments
5. Cash flow hedging reserves
6. Difference in translation of foreign currency financial
statements
7. Others
VI. Total comprehensive incomes -412638148.78 3103421726.27
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2025 2024
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 347635310755.39 372036265785.03
Net increase in deposits from customers and other banks
Net increase in borrowings from the central bank
Net increase in loans from other financial institutions
Cash received from receiving insurance premium of original
insurance contracts
Net cash received from reinsurance business
Net increase in deposits and investment of the insured
Cash received from interests handling charges and
commissions
Net increase in borrowing funds
Net increase in repurchase business capital
Net cash received from securities trading agency
148 / 275Full content of 2025 Annual Report
Refunds of taxes and levies 8192982942.90 8183620508.01
Cash received relating to other operating activities 5304135990.78 3999364594.26
Subtotal of cash inflow from operating activities 361132429689.07 384219250887.30
Cash paid for goods purchased and services received 282644523570.94 319391099945.22
Net increase in loans and advances to customers
Net increase in deposits with the central bank and other banks
Cash paid for claims under original insurance contracts
Net increase in lending funds
Cash paid for interests handling charges and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 3305006038.73 3418589693.72
Payments of all types of taxes 26626691746.89 24125457835.49
Cash paid relating to other operating activities 3149740913.90 2674976807.99
Subtotal of cash outflow from operating activities 315725962270.46 349610124282.42
Net cash flow from operating activities 45406467418.61 34609126604.88
II. Cash flows from investing activities:
Cash received from investment recovery 4267033716.54 3519097041.94
Cash received from the return on investment 59654510.65 24778639.60
Net cash received from the disposal of fixed assets intangible 17014767.60 264117510.59
assets and other long-term assets
Net cash received from the disposal of subsidiaries and other 491583064.09
business units
Cash received relating to other investing activities 63947965.63 185655184.16
Subtotal of cash inflow from investment activities 4899234024.51 3993648376.29
Cash paid for purchase and construction of fixed assets 42681845985.26 31582215734.40
intangible assets and other long-term assets
Cash paid for investments 4272634018.39 3524971851.23
Net increase in pledge loans
Net cash paid for acquisition of subsidiaries and other business
units
Cash paid relating to other investing activities 88335735.63 142342025.66
Subtotal of cash outflow from investment activities 47042815739.28 35249529611.29
Net cash flow from investment activities -42143581714.77 -31255881235.00
III. Cash flow from financing activities:
Cash received from absorption of investment 1728000000.00
Including: Cash received by subsidiaries from investments of 1728000000.00
minority shareholders
Cash received from borrowings 140260974208.19 126032872268.04
Cash received relating to other financing activities 6167465625.41 21475993068.61
149 / 275Full content of 2025 Annual Report
Subtotal of cash inflow from financing activities 146428439833.60 149236865336.65
Cash paid for repayment of debts 132752145972.77 124519359588.57
Cash paid for distribution of dividends and profits or payment 8380943834.55 12029536471.85
of interests
Including: Dividends or profits paid by subsidiaries to minority 2678000000.00
shareholders
Cash paid relating to other financing activities 8576442773.49 14376254046.91
Subtotal of cash outflow from financing activities 149709532580.81 150925150107.33
Net cash flow from financing activities -3281092747.21 -1688284770.68
IV. Effect of change in exchange rate on cash and cash equivalents -56627418.64 -207983361.27
V. Net increase in cash and cash equivalents -74834462.01 1456977237.93
Add: Opening balance of cash and cash equivalents 12943832335.45 11486855097.52
VI. Ending balance of cash and cash equivalents 12868997873.44 12943832335.45
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2025 2024
I. Cash flow from operating activities:
Cash received from sales of goods or rendering of services 9332896788.11 15696588713.99
Refunds of taxes and levies 44858852.18 13166721.36
Cash received relating to other operating activities 8053193544.86 1592873201.79
Subtotal of cash inflow from operating activities 17430949185.15 17302628637.14
Cash paid for goods purchased and services received 10625979683.73 11840353525.29
Cash paid to and on behalf of employees 231240603.21 232656827.23
Payments of all types of taxes 90408486.38 65728903.16
Cash paid relating to other operating activities 4789179512.41 525957823.36
Subtotal of cash outflow from operating activities 15736808285.73 12664697079.04
Net cash flow from operating activities 1694140899.42 4637931558.10
II. Cash flows from investing activities:
Cash received from investment recovery
Cash received from the return on investment 43654510.65 3243228639.60
Net cash received from the disposal of fixed assets intangible 13921836.15 1307737.00
assets and other long-term assets
Net cash received from the disposal of subsidiaries and other
business units
Cash received relating to other investing activities 3428581016.96 1681000000.00
Subtotal of cash inflow from investment activities 3486157363.76 4925536376.60
Cash paid for purchase and construction of fixed assets 40049513.03 2271130.13
intangible assets and other long-term assets
150 / 275Full content of 2025 Annual Report
Cash paid for investments 7450000000.00 2892000000.00
Net cash paid for acquisition of subsidiaries and other business
units
Cash paid relating to other investing activities 4099900000.00 1401550000.00
Subtotal of cash outflow from investment activities 11589949513.03 4295821130.13
Net cash flow from investment activities -8103792149.27 629715246.47
III. Cash flow from financing activities:
Cash received from absorption of investment
Cash received from borrowings 20777000000.00 18976690000.00
Cash received relating to other financing activities 7453000000.00 5528552171.00
Subtotal of cash inflow from financing activities 28230000000.00 24505242171.00
Cash paid for repayment of debts 14933200000.00 15272538000.00
Cash paid for distribution of dividends and profits or payment 1578824260.13 1616645745.96
of interests
Cash paid relating to other financing activities 5634129390.86 15357194192.39
Subtotal of cash outflow from financing activities 22146153650.99 32246377938.35
Net cash flow from financing activities 6083846349.01 -7741135767.35
IV. Effect of change in exchange rate on cash and cash equivalents -1894907.83 998308.18
V. Net increase in cash and cash equivalents -327699808.67 -2472490654.60
Add: Opening balance of cash and cash equivalents 682038492.96 3154529147.56
VI. Ending balance of cash and cash equivalents 354338684.29 682038492.96
151 / 275Full content of 2025 Annual Report
7. Consolidated Statement of Changes in Owner's Equity
Current amount
Unit: RMB
2025
Owner's equity attributable to the parent company
Other equity
Item Other Surpl Total instruments
Share Capital Less: compre Special us Generic Undistr
Minorit
Subtota y equity owners'
capital Prefer Perpe treasur risk ibuted Other Oth reserve y stock hensive reserves reserv
equity
red tual income es reserves profits
l
shares bond er
I. Ending balance of 1012552 1081956 698700 280892 190571
1270283303438591509649948241
743097005.472287.658012.030299.6
the previous year 5000.00 6635.04 8823.24 216.98 87.43 66.03 1 5 2 7
Add: Changes
in accounting
policies
Correctio
n of errors in the
previous period
Other
II. Opening balance 1012552 1081956 698700 280892 190571
1270283303438591509649948241
5000.00 6635.04 8823.24 216.98 87.43 7430 97005.4 72287.6 58012.0 30299.6of the year 66.03 1 5 2 7
III. -
Increases/decreases - - - - - 265649 243335
in the current period 1360827 1861379 199820 194223 367474 108914 333.73 8071.31 21695118.49 9055.20
(decrease expressed 46.00 677.65 3937.31 326.45 939.43
with "-")
(I) Total -
comprehensive 194223 848314 654090 239608 305198
326.45274.77
income 948.32 2257.10
3523.04
(II) Capital - - -
contributed and 1360827 1862121 199820
reduced by owners 46.00 191.31 3937.31
152 / 275Full content of 2025 Annual Report
1. Ordinary shares - - -
invested by the 1360827 1862121 199820
owners 46.00 191.31 3937.31
2. Capital
contributed by
holders of other
equity instruments
3. Amount of share-
based payment
recognized in
owners’ equity
4. Others
(III) Profit - - - 957229 957229 957229
distribution 214.20 214.20 214.20
1. Withdrawal of
surplus reserve
2. Withdrawal of
generic risk reserves
3. Distribution to - - -
owners (or 957229 957229 957229
shareholders) 214.20 214.20 214.20
4. Others
(IV) Internal carry-
forward of owner's
equity
1. Capital reserve
transferred into
capital (or share
capital)
2. Surplus reserve
transferred into
capital (or share
capital)
153 / 275Full content of 2025 Annual Report
3. Surplus reserves
for making up loss
4. Changes in
defined benefit
plans carried
forward to retained
earnings
5. Other
comprehensive
incomes carried
forward to retained
earnings
6. Others
(V) Special reserve 367474 367474 365633 73310718.49 18.49 79.52 98.01
1. Amount
appropriated in the 394308722.44
394308328522722831
722.44292.54014.98
current period
2. Use in the current 357561 357561 291958 649520
period 303.95 303.95 913.02 216.97
(VI) Others 741513.6 741513. 712434. 1453946 66 69 8.35
IV. Ending balance 9989442 8958186 498880 866688 558046
1270282214435935533983969936
of the current period 254.00 957.39 4885.93 90.53 05.92
743082065.922953.9
66.038216083.3
49354.8
37
Amount of prior period
Unit: RMB
2024
Owner's equity attributable to the parent company
Other equity
Item Geninstruments Less: Other eric Undistrib Minority
Total
Share Capital owners'
capital Prefe Perpe reserve treasury
compreh Special Surplus Ot equity
Ot stock ensive reserves reserves
risk uted Subtotal equity
rred tual income rese profits
her
her
share bond rves
154 / 275Full content of 2025 Annual Report
s
I. Ending
balance of
the 10125525 10825322 6619807 110203 606772 9741516 28859818 44335891 50332930 94668821
previous 000.00 259.36 176.02 866.35 96.91 44.68 194.51 085.79 555.50 641.29
year
Add:
Changes in
accounting
policies
Correction
of errors in
the
previous
period
Other
II. Opening
balance of 10125525 10825322 6619807 110203 606772 9741516 28859818 44335891 50332930 94668821
the year 000.00 259.36 176.02 866.35 96.91 44.68 194.51 085.79 555.50 641.29
III.Increases/d
ecreases in
the current - 3672016 170688 - 2965914 - - 63202745 15530865
period 5755624.32 47.22 350.63
4162015294211847671879
(decrease 09.48
21.359.108.146.528.38
expressed
with "-")
(I) Total
comprehen 170688 72448468 89517303 1398574 2293747sive 350.63 6.45 7.08 035.84 072.92
income
(II) Capital
contributed
and 3672016
-
47.2236720164
17280001360798
reduced by 7.22 000.00 352.78
owners
1. Ordinary 3672016 -
shares 47.22 36720164
17280001360798
invested by 7.22
000.00352.78
155 / 275Full content of 2025 Annual Report
the owners
2. Capital
contributed
by holders
of other
equity
instruments
3. Amount
of share-
based
payment
recognized
in owners’
equity
4. Others
(III) Profit - - - -
distribution
2965914
21.3512539059573144524500003407314875.554.20000.00454.20
1.
Withdrawal 2965914
-
of surplus 21.35 29659142
reserve 1.35
2.
Withdrawal
of generic
risk
reserves
3.
Distributio
n to owners - - - -
(or 95731445 95731445 2450000 3407314
shareholder 4.20 4.20 000.00 454.20
s)
4. Others
(IV)
Internal
carry-
forward of
owner's
156 / 275Full content of 2025 Annual Report
equity
1. Capital
reserve
transferred
into capital
(or share
capital)
2. Surplus
reserve
transferred
into capital
(or share
capital)
3. Surplus
reserves for
making up
loss
4. Changes
in defined
benefit
plans
carried
forward to
retained
earnings
5. Other
comprehen
sive
incomes
carried
forward to
retained
earnings
6. Others
(V) Special - - - -
reserve 416201 41620109 39016665 8063677509.48 .48 .76 .24
1. Amount 396314 39631421 32352787 71984209
appropriate 212.37 2.37 7.70 0.07
d in the
157 / 275Full content of 2025 Annual Report
current
period
2. Use in
the current 437934 43793432 36254454 80047886
period 321.85 1.85 3.46 5.31
----
(VI) Others 5755624. 5755624. 5529913. 11285537
323256.88
IV. Ending
balance of 10125525 10819566 6987008 280892 190571 1270743 28330397 43859172 50964958 94824130the current 000.00 635.04 823.24 216.98 87.43 066.03 005.41 287.65 012.02 299.67
period
8. Statement of Changes in Owners’ Equity of the Parent Company
Current amount
Unit: RMB
2025
Other equity instruments Specia
Item Preferr Capital
Less: Other
l Surplus Undistribut Total owners' Share capital
ed Perpetu Othe reserve
treasury comprehens Other
al bond r stock ive income
reserv reserves ed profits equity
shares es
I. Ending
balance of the 1012552500 1124337472 6987008823 217617723. 1270743066 27855716 1865582334
previous year 0.00 1.45 .24 95 .03 54.14 2.33
Add: Changes
in accounting
policies
Correction of
errors in the
previous period
Other
II. Opening
balance of the 1012552500 1124337472 6987008823 217617723. 1270743066 27855716 1865582334
year 0.00 1.45 .24 95 .03 54.14
2.33
158 / 275Full content of 2025 Annual Report
III.Increases/decre
ases in the - - - - - -
current period 136082746.0 1862121191. 1998203937 112807272. 12570600 1369867362.(decrease 0 31 .31 55 90.43 98
expressed with
"-")
(I) Total - - -
comprehensive 112807272. 299830876 412638148.7
income 55 .23 8
(II) Capital
contributed and - - -
reduced by 136082746.0 1862121191. 1998203937
owners 0 31 .31
1. Ordinary - - -
shares invested 136082746.0 1862121191. 1998203937
by the owners 0 31 .31
2. Capital
contributed by
holders of other
equity
instruments
3. Amount of
share-based
payment
recognized in
owners’ equity
4. Others
(III) Profit - -
distribution 957229214 957229214.2.20 0
1. Withdrawal
of surplus
reserve
2. Distribution - -
to owners (or 957229214 957229214.2
shareholders) .20 0
3. Others
159 / 275Full content of 2025 Annual Report
(IV) Internal
carry-forward
of owner's
equity
1. Capital
reserve
transferred into
capital (or share
capital)
2. Surplus
reserve
transferred into
capital (or share
capital)
3. Surplus
reserves for
making up loss
4. Changes in
defined benefit
plans carried
forward to
retained
earnings
5. Other
comprehensive
incomes carried
forward to
retained
earnings
6. Others
(V) Special
reserve
1. Amount
appropriated in
the current
period
2. Use in the
current period
160 / 275Full content of 2025 Annual Report
(VI) Others
IV. Ending
balance of the 9989442254. 9381253530. 4988804885 104810451. 1270743066 15285115 1728595597
current period 00 14 .93 40 .03 63.71
9.35
Amount of prior period
Unit: RMB
2024
Other equity instruments Specia
Item Less: treasury Other Surplus Undistributed Othe Total owners'
Share capital Preferre Perpetu Capital reserve stock comprehensi
l
Other ve income reserv reserves profits r equity d shares al bond es
I. Ending
balance of the 1012552500 11243374721 6619807176. 80110211. 974151644. 1073563316. 16876917717
previous year 0.00 .45 02 22 68 15.48
Add: Changes in
accounting
policies
Correction of
errors in the
previous period
Other
II. Opening
balance of the 1012552500 11243374721 6619807176. 80110211. 974151644. 1073563316. 16876917717
year 0.00 .45 02 22 68 15 .48
III.Increases/decrea
ses in the
current period 367201647.2 137507512 296591421. 1712008337.2 .73 35 99
1778905624.
(decrease 85
expressed with
"-")
(I) Total
comprehensive 137507512 2965914213. 3103421726.income .73 54
27
(II) Capital 367201647.2 -
contributed and 2 367201647.22
reduced by
161 / 275Full content of 2025 Annual Report
owners
1. Ordinary
shares invested 367201647.2 -
by the owners 2 367201647.22
2. Capital
contributed by
holders of other
equity
instruments
3. Amount of
share-based
payment
recognized in
owners’ equity
4. Others
(III) Profit 296591421. - -
distribution 35 1253905875. 55 957314454.20
1. Withdrawal -
of surplus 296591421. 296591421.3
reserve 35 5
2. Distribution -
to owners (or 957314454.2 -
shareholders) 0 957314454.20
3. Others
(IV) Internal
carry-forward of
owner's equity
1. Capital
reserve
transferred into
capital (or share
capital)
2. Surplus
reserve
transferred into
capital (or share
capital)
162 / 275Full content of 2025 Annual Report
3. Surplus
reserves for
making up loss
4. Changes in
defined benefit
plans carried
forward to
retained
earnings
5. Other
comprehensive
incomes carried
forward to
retained
earnings
6. Others
(V) Special
reserve
1. Amount
appropriated in
the current
period
2. Use in the
current period
(VI) Others
IV. Ending
balance of the 1012552500 11243374721 6987008823. 217617723 127074306 2785571654. 18655823342
current period 0.00 .45 24 .95
6.0314.33
163 / 275Full content of 2025 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 9989442254.00 and a total of 9989442254 shares (par value: RMB 1 per share) including outstanding
shares subject to sales restrictions: 651375000 A shares and outstanding shares not subject to sales restrictions:
9338067254 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 Seventh Board of Directors at its 5th
meeting on April 26 2026.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
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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 Shenghui 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
RApplicable □ Not applicable
Item Materiality
Important Advance payments with the aging more than 1 year Single amount exceeding 0.5% of total assets
Important dividends receivable aged over 1 year Single amount exceeding 0.5% of total assets
Important construction in progress Single amount exceeding 0.5% of total assets
Important accounts payable with the aging more than 1 year Single amount exceeding 0.5% of total assets
Important other payable with the aging more than 1 year Single amount exceeding 0.5% of total assets
Important Contract liabilities with the aging more than 1 year Single amount exceeding 0.5% of total assets
Important overseas operating entity 15% of total income
Important cash flows from investing activities Single amount exceeding 0.5% of total assets
Important non-wholly owned subsidiary The individual asset total exceeds 3% of the Group's total assets
Important joint ventures The book value of individual investment exceeds 0.5% of the Group's total assets
The contingent matters of individual amount exceeding 3% of
Important contingencies total assets or other matters significantly influencing investor
decisions
Important post-balance sheet events Post-balance-sheet-date profit distribution and other matters significantly influencing investor decisions
6. Accounting treatment methods for business combinations under and not under common control
1. Accounting treatment method for business combinations under common control
Assets and liabilities acquired by the Company in a business combination are measured at their carrying
amounts in the consolidated financial statements of the ultimate controlling party at the combination date. The
difference between the Company's share of the carrying amount of the combined party's owner's equity in the
consolidated financial statements of the ultimate controlling party and the carrying amount of the consideration paid
for the combination (or the total par value of the shares issued) is adjusted against the capital reserve. If the capital
reserve is insufficient to absorb the difference any excess is adjusted against retained earnings.
2. Accounting treatment method for business combinations not under common control
At the acquisition date the Company recognizes the excess of the combination cost over its share of the fair
value of the identifiable net assets of the acquiree acquired in the combination as goodwill. If the combination cost
is less than the Company's share of the fair value of the identifiable net assets of the acquiree acquired in the
165 / 275Full content of 2025 Annual Report
combination the Company first reassesses the measurement of the fair values of the acquiree's identifiable assets
liabilities and contingent liabilities acquired as well as the combination cost. If after the reassessment the
combination cost remains less than the Company's share of the fair value of the identifiable net assets of the acquiree
acquired in the combination the difference is recognized in profit or loss for the current period.
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 comprised of 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 profit or 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 profit or loss or other comprehensive income.
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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 profit or loss.At initial recognition financial liabilities are classified into four categories: (1) financial liabilities at fair value
through profit or 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 profit or loss the transaction costs thereof shall be
directly recorded in current profit or loss. For other categories of financial assets or financial liabilities the related
transaction costs 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 profit or 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 profit or 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 profit
or 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 profit or 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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reclassified from other comprehensive income to retained earnings.
4) Financial assets at fair value through profit or loss
They are subsequently measured at fair value and the resulting gains or losses (including interest and dividend
income) are included in current profit or 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 profit or loss
Such financial liabilities comprise trading financial liabilities (including derivatives of financial liabilities) and
those specified as financial liabilities at fair value through profit or 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
profit or 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 profit or 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 profit or 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 reclassified
from other comprehensive income to 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 allowance determined in accordance with the impairment provisions 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 profit or 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
168 / 275Full content of 2025 Annual Report
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 profit or loss: (1) the book value 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 book value 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 profit or loss:
(1) the book value 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) Level 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) Level 2 input value refers to them directly or indirectly observable input value of relevant assets or liabilities
apart from Level 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) Level 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 other than those
classified as financial liabilities at fair value through profit or loss financial guarantee contracts that do not belong
to financial liabilities at fair value through profit or 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 allowance 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 i.e. the present value of all cash shortfalls. The financial assets
purchased or generated by the Company that have suffered credit impairment are discounted according to the credit-
169 / 275Full content of 2025 Annual Report
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 allowance
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 allowance 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 allowance 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 allowance 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 allowance is included in the current profit or loss as impairment loss or profit. For financial
assets at amortized cost the loss provision is offset against the book value 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 book value 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 can not 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. Recognition criteria and provision methods for expected credit losses on accounts receivable and contract
assets
1. Accounts receivable with expected credit losses provided by portfolio of credit risk characteristics
Portfolio category Basis for determining portfolios Method for measuring expected credit loss
With reference to historical credit loss
Banker's acceptance receivables Type of notes experience and in combination with the
current situation and the forecast of future
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economic conditions the expected credit loss
is calculated through default risk exposure
Commercial acceptance bill receivables and the expected credit loss rate in the whole
duration
With reference to historical credit loss
experience and in combination with the
current situation and the forecast of future
Accounts receivable - aging portfolio Aging economic conditions the comparison table
between the aging of accounts receivable and
the expected credit loss rate is compiled to
calculate the expected credit loss
With reference to historical credit loss
Accounts receivable - trade accounts portfolio of
overseas subsidiaries Nature of account
experience and in combination with the
current situation and the forecast of future
economic conditions the expected credit loss
Accounts receivable - Related party dealings portfolio Related parties within is calculated through default risk exposure
within the scope of consolidation the scope of and the expected credit loss rate in the whole consolidation [note] duration
Other receivables - Related party dealings portfolio Related parties within
within the scope of consolidation the scope of consolidation [note]
Other receivables - borrowing deposit portfolio
Other receivables - government receivables portfolio With reference to historical credit loss
experience and in combination with the
Other receivables - futures margin portfolio current situation and the forecast of future
economic conditions the expected credit loss
Other receivables - paper goods transaction settlement is calculated through default risk exposure
portfolio Nature of account and the expected credit loss rate in the next
12 months or the whole duration.
Other receivables - deposit and margin receivables
portfolio
Other receivables - reserve fund receivables portfolio
Other receivables - current account portfolio
[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
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (included the same below) 5
1-2 year(s) 10
2-3 years 30
Above 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.
13. Contract Assets
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship
between the performance of obligations and customer payments. The Company presents contract assets and contract
liabilities under the same contract on a net basis after offsetting them against each other.
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The Company presents the right to consideration from a customer that is unconditional (i.e. requiring only the
passage of time before payment is due) as a receivable and presents the right to consideration in exchange for goods
transferred to a customer (where the right is conditioned on something other than the passage of time) as a contract
asset.
14. Inventory
1. Classification of inventories
Inventory includes finished products or commodities held for sale in ordinary course of business 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
Packaging materials are amortized using the one-off amortization method.
5. Inventory depreciation 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.
15. 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 the same 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 book value 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 book value of the combination consideration paid or the par value of the issued shares is adjusted against the
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capital reserve. If the capital reserve is not sufficient for offsetting the adjustment is made to retained earnings.For the long-term equity investments formed through business combination under the same control 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
treatment. If it is not a package deal on the date of combination the share of the book value 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 book value of long-term equity investment
before the combination is realized and the book value 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 the same 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 the same 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 separate financial statements the initial investment cost of long-term equity investment accounted using
the cost method is measured at the sum of the book value 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 book value 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 profit or 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 associated enterprises 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
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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;
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) Separate financial statements
For disposal of equity the difference between book value and the actual price of the acquisition shall be
recorded into current profit or 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) Separate financial statements
Each deal is considered as a deal for the disposal of the subsidiary and losing control of accounting treatment.However the difference between the disposal cost of each deal before losing the control and the book value of long-
term equity investment corresponding to the disposal investment is recognized as other comprehensive income in
separate financial statements and when the control is lost transferred together into profit or 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 profit or loss for the
period during which the control is lost.
16. Investment properties
Measurement model of investment properties
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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
depreciation or amortization conducted by the same methods for fixed assets and intangible assets.
17. 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
Depreciable life Residual value rate Annual depreciation
Category Depreciation method (years) (%) rate (%)
Housing and buildings Straight-line depreciation method 5-30 5 or 10 19.00-3.00
Machinery and Straight-line
equipment depreciation method 10-15 5 or 10 9.50-6.00
Transportation Straight-line
facilities depreciation method 4-5 5 or 10 23.75-18.00
Other equipment Straight-line depreciation method 3-10 5 or 10 31.67-9.00
18. 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.Category Standards and timing for carrying forward construction in progress to fixed assets
The main project and supporting projects have been substantially completed and the engineering
Housing and buildings has met the predetermined design requirements and has been accepted by the survey design
construction supervision and other units.Machinery and equipment After installation and commissioning it meets the design requirements or the standards specified in the contract
19. Borrowing costs
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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 profit or loss.
2. Capitalization period of borrowing costs
(1) Capitalization begins when the borrowing cost meets the following conditions: 1) asset expenditure has
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 discount
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.
20. 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:
Item Service life and its determination basis Amortization method
Land-use right 15-50 years registration period of land use right certificate Straight-line method
Know-how 6-10 years expected income period Straight-line method
Management software 5-10 years expected income period Straight-line method
Pollution dumping right 5-20 years registration period of the certificate Straight-line method
Sea area use right 1-50 years registration period of the certificate Straight-line method
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(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
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.
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Expenses incurred for routine tooling preparation and industrial engineering for large-scale batch and
commercial production are not included in the collection scope.Testing expenses include clinical trial fees for new drug development field test fees for exploration and
development technologies field trial fees etc.
(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
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
profit or 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.
21. 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 book value the Company shall recognize the provision
for asset impairment based on the difference and recognize such loss into the current gains and losses.
22. 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 profit or loss.
23. Contract liabilities
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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.
24. Employee remuneration
Employee remuneration includes short-term remuneration post-employment benefits termination 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
will be recognized as liabilities and included in current profit or 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
profit or 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 profit or 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 profit or 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.
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(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 profit or loss or relevant asset cost.
25. Liability Provisions
1. As the obligations arising from contingencies such as external guarantees litigation matters product quality
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 book value of the provisions on the balance sheet date.
26. Revenue
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
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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
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.
27. 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 profit or 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 profit or loss.If the book value of assets relating to contract cost is higher than the remaining consideration expected to be
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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 book value of the asset the withdrew asset impairment provision shall be reversed and recorded in the
current gains or losses but the book value of the asset after reversion shall not exceed the book value of the asset at
the reversion date under the condition of not withdrawing the impairment provision.
28. 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 subsidies shall be measured according to the amount received or accrued.In the case of a non-monetary asset the government grants shall be measured at fair value; where the fair 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 book value of
the relevant assets or recognized as deferred income. The government grants recognized as deferred income shall
be recorded in the profit or 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 profit or 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 profit or 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 profit or 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 profit or 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 ordinary course of business of the Company are recorded in non-operating incomes and
expenses.
5. Accounting treatment method for policy-based preferential loans with interest subsidy
(1) Where the government finance department 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 government finance department allocates the discount interest funds directly to the Company the
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discount interest will be used to offset the borrowing costs.
29. Deferred income tax assets deferred income tax liabilities
1. Depending on the difference between the book value and the tax base of assets or liabilities (the difference
between the tax base and the book value 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 income 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 book value of deferred income tax assets. 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 book value 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.
30. 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 profit or 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
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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
at the discount rate of the present value of the lease payment during each period of the lease term and included in
the current profit or loss. The variable lease payments not included in the measurement of lease liabilities shall be
included in current profit or 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 book value 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 book value 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 profit or 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 book value 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 profit or loss by installment. Variable lease payments
the Company acquired in connection with operating leases that are not included in the lease receipts are recognized
184 / 275Full content of 2025 Annual Report
in the current profit or 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 profit or loss when actually incurred.
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 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.
31. 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 government
finance department 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.
32. Changes in significant accounting policies and accounting estimates
(1) Significant accounting policy changes
□ Applicable R Not applicable
(2) Changes in significant accounting estimate
□ Applicable R Not applicable
185 / 275Full content of 2025 Annual Report
(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 R Not applicable
33. 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 safety production 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 tax categories and tax rates
Tax category Basis of taxation Tax rate
The value-added tax received is
calculated on the basis of sales of goods
Value-added tax and taxable service income calculated according to the tax law. After deducting 13% 9% 6% [Note 1]
the VAT paid allowed for the current
period the difference is VAT payable.Consumption tax Taxable sales (volume) [Note 2]
Urban maintenance and construction tax Actual payment of turnover tax 7%、5%
Enterprise income tax Taxable income [Note 3]
The remaining value after deducting 30%
Property tax from the original value of the property in one go for ad valorem collection; the 1.2%、12%
rental income for rent based collection.Education surcharge Actual payment of turnover tax 3%
Local education surcharge Actual payment of turnover tax 2%
186 / 275Full content of 2025 Annual Report
[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] Disclosure explanation if there are taxpayers with different enterprise income tax rates
Name of taxpayer Income tax rate
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.Subsidiaries Hong Kong Shenghui Co. Ltd. Hong Kong
Yisheng Dahua Petrochemical Co. Ltd. Yisheng New
Materials Trading Co. Ltd. Rongsheng Petrochemical (Hong The tax shall be calculated and paid according to the relevant
Kong) Co. Ltd. Rongsheng Petrochemical (Singapore) Private tax rates of the country and region where the business is
Co. Ltd. Rongtong Logistics (Singapore) Private Co. Ltd. located.and Zhejiang Petroleum & Chemical (Singapore) Private Co.Ltd.Subsidiaries Rongxiang Chemical Fiber Co. Ltd. Rongsheng
International Trade (Hainan) Co. Ltd. Dalian Yisheng New
Materials Co. Ltd. and Zhejiang Rongyi Trading Co. Ltd. 20%
Zhejiang Rongyi Chemical Fiber Co. Ltd.Other taxpayers other than the above 25%
2. Tax preference
1. According to requirements in the Notice on the Continuation of the Policy of Partial Consumption Tax on
Naphth 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 Naphth 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 Naphth 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 Naphth 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) in the case that the production enterprise implementing the fixed-point
direct supply plan and selling naphth and fuel oil within the planned quantity limit with a Chinese anti-
counterfeiting special VAT invoice with "DDZG" logo it shall be exempted from consumption tax. The subsidiaries
Ningbo Zhongjin Petrochemical Co. Ltd. and Zhejiang Petroleum & Chemical Co. Ltd. are 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
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.
187 / 275Full content of 2025 Annual Report
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 744.5073 million.
3. According to the Announcement on Filing of High-tech Enterprises Recognized by Zhejiang Provincial
Accreditation Institutions in 2025 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 GR202533008268 and GR202533003871 respectively. The validity period of the recognition
is 2025-2027 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 2025 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 GR202533101851 with the validity period of
2025-2027. 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
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
188 / 275Full content of 2025 Annual Report
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.VII. Notes to Items in the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 1356245.56 1580800.25
Bank deposit 12158835849.89 12624073263.80
Other monetary funds 1339477383.39 2207730856.40
Total 13499669478.84 14833384920.45
Including: Total amount of overseas deposits 2275567146.98 2835618399.02
2. Derivative financial assets
Unit: RMB
Item Ending balance Beginning balance
Paper futures contract 36638553.50 55586387.34
Foreign exchange derivatives 242190249.19 420180297.83
Total 278828802.69 475766685.17
3. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive of 1 year) 3217852678.84 6823012066.63
1-2 years 6188146.81 1366.19
2-3 years 1177.56 283780636.85
Above 3 years 12160.09 33453923.37
Total 3224054163.30 7140247993.04
(2) Classified disclosure by bad debt accrual method
Unit: RMB
Ending balance Beginning balance
Category Book Book
Book balance Bad-debt provision value Book balance Bad-debt provision value
189 / 275Full content of 2025 Annual Report
Percent Percent
Proporti Proporti Amoun
Amount on Amount
age of age of
provisio Amount on t provisio
n n
Accounts
receivable
with
provision 3169
for bad debt 322405 100.00% 5474884163.30 00.99 1.70% 30536
714024318276682197
reserves 2.31 7993.04
100.00%286.684.46%1706.36
based on
aging
portfolio
Total 322405 100.00% 547488
3169
4163.3000.991.70%30536
714024318276
7993.04100.00%286.684.46%
682197
2.311706.36
Provision for bad debt by combination: RMB 54748800.99
Unit: RMB
Ending balance
Name
Book balance Bad-debt provision Percentage of provision
Trade fund portfolio of
overseas subsidiaries 2135503220.03
Aging portfolio 1088550943.27 54748800.99 5.03%
Total 3224054163.30 54748800.99 1.70%
Accounts receivable of provision for bad debt by aging combination:
Unit: RMB
Amount by the end of the period
Aging
Book balance Bad-debt provision Accrual ratio
Within 1 year 1082349458.81 54117472.95 5.00%
1-2 year(s) 6188146.81 618814.68 10.00%
2-3 years 1177.56 353.27 30.00%
Above 3 years 12160.09 12160.09 100.00%
Subtotal 1088550943.27 54748800.99 5.03%
If the provision for bad debts of accounts receivable is accrued according to the general model of expected credit
loss:
□ Applicable R Not applicable
(3) Bad debt reserves accrual recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Beginning The amount of change in the current period Ending
Category balance Provision Recovered or Write-off Other balance
190 / 275Full content of 2025 Annual Report
returned
Provision made
for bad debt
reserves based 318276286.68 -
on aging 263527485.69
54748800.99
portfolio
Total 318276286.68 -263527485.69 54748800.99
(4) Accounts receivables with top 5 ending balances by debtor
The total amount of the top 5 accounts receivable at the end of the period was RMB 2199606071.26 accounting
for 68.22% of the total accounts receivable at the end of the period. The corresponding provision for bad debts was
RMB 29302017.90.
4. Receivables financing
(1) Classified presentation of receivables financing
Unit: RMB
Item Ending balance Beginning balance
Banker's acceptance 83421123.96 103225654.46
Total 83421123.96 103225654.46
(2) Receivable financing that have been endorsed or discounted by the company at the end of the period and
have not yet matured on the balance sheet date
Unit: RMB
Pledged amount at the end Pledged amount before the
Item of the period end of the period
Banker's acceptance 3660076325.38
Total 3660076325.38
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
Item Ending balance Beginning balance
Other receivables 4925104317.10 4345964007.66
Total 4925104317.10 4345964007.66
(1) Classification of other receivables by nature
Unit: RMB
191 / 275Full content of 2025 Annual Report
Nature of account Ending book balance Beginning book balance
Government receivables 4575905403.92 3675348932.89
Futures margin 334936493.12 313138787.88
Deposit receivable margin 19779471.63 285638372.22
Paper goods transaction settlement 41018656.98 75500340.27
Reserve fund receivables and others 15703525.34 30929370.92
Loan deposit 10000000.00 15000000.00
Current accounts 10800000.00 10800000.00
Total 5008143550.99 4406355804.18
(2) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive of 1 year) 4300023016.04 3154663061.38
1-2 years 64995117.37 165271254.66
2-3 years 16349319.51 1063871496.61
Above 3 years 626776098.07 22549991.53
Total 5008143550.99 4406355804.18
(3) Classified disclosure by bad debt accrual method
RApplicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Category Percent Book Percent Book
Propor age of
Amount Amount value
Proporti age of
tion provisio Amount on Amount
value
provisio
n n
Provision
made for
bad debt 500814 100.00 830392 492510 440635 603917 434596
reserves 3550.99 % 33.89
1.66%4317.105804.18100.00%96.521.37%4007.66
based on
portfolio
Total 500814 100.00 830392 492510 440635 603917 4345963550.99 % 33.89 1.66% 4317.10 5804.18 100.00% 96.52 1.37% 4007.66
Provision for bad debt by combination: RMB 83039233.89
Unit: RMB
Ending balance
Name
Book balance Bad-debt provision Percentage of provision
Government receivables 4575905403.92 54036300.33 1.18%
192 / 275Full content of 2025 Annual Report
Futures margin 334936493.12
Deposit receivable margin 19779471.63 15695288.38 79.35%
Paper goods transaction 41018656.98
settlement
Reserve fund receivables and 15703525.34 6707645.18 42.71%
others
Loan deposit 10000000.00
Current accounts 10800000.00 6600000.00 61.11%
Total 5008143550.99 83039233.89 1.66%
The explanation used to determine this combination is as follows:
Provision for bad debts is made based on the general model of expected credit losses:
(4) Provision for bad debts is made according to the general model of expected credit loss:
1) Breakdown
Unit: RMB
Stage I Stage II Stage III
Expected
Expected credit loss over
Bad-debt provision Expected credit loss for the entire credit loss in the entire Total
the next 12 duration duration (credit impairment has
months (without credit occurred)
impairment)
The balance as of January 1 2857644.85 2858135.80 54676015.87 60391796.52
2025
The balance as of January 1
2025 in the current period
--Transferred into Stage II -47735.03 47735.03
--Transferred into Stage III -1634931.95 1634931.95
Provision in current period -2530965.92 -47376.73 25243780.02 22665437.37
Other changes[Note] -18000.00 -18000.00
Balance as of December 31 260943.90 1223562.15 81554727.84 83039233.89
2025
Bad debt provision ratio at the 0.01% 1.88% 12.68% 1.66%
end of the period
[Note] Other changes refer to the disposal of subsidiary Rongsheng Energy (Zhoushan) Co. Ltd. during the period resulting in the
corresponding transfer of the provision for bad debts.
2) Significant Changes in the Book Balance of Loss Provision During the Period
□Applicable RNot applicable
5) Other receivables in the top five of the ending balance collected by the debtor
Unit: RMB
Company name Nature of payment Ending balance Aging Proportion in a Ending balance of
193 / 275Full content of 2025 Annual Report
total ending provision for bad
balance of other debts
receivables
Other receivables 1 Tax refunds 3563848987.9receivable 2 Within 1 year 71.16%
Other receivables 2 Subsidies receivable 603036416.00 2-3 years 12.04% 52910249.92
Other receivables 3 Subsidies receivable 409020000.00 Within 1 year 1-2 years 8.17% 1126050.41
Other receivables 4 Futures margin 56527049.45 Within 1 year 1.13%
Other receivables 5 Futures margin 50589182.00 Within 1 year 1.01%
Total 4683021635.37 93.51% 54036300.33
6. Advances paid
(1) Advance payments presented by age
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 2120580033.00 99.07% 1335495318.36 98.60%
1-2 years 14582118.36 0.68% 7472652.90 0.55%
2-3 years 1787253.51 0.08% 11361398.90 0.84%
Above 3 years 3649429.09 0.17% 190338.32 0.01%
Total 2140598833.96 1354519708.48
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) Top five payers with the biggest ending balances of advance payments
The total amount of the top 5 advance payments at the end of the period was RMB 1580310108.12 accounting
for 73.83% of the total advance payments at the end of the period.
7. Inventories
Whether the Company is subject to the disclosure requirements of the real estate industry
□Yes RNo
(1) Classification of inventories
Unit: RMB
Ending balance Beginning balance
Inventory Inventory
Item depreciation depreciation
Book balance reserves or Book value Book balance reserves or Book value
provision provision for
for impairment
194 / 275Full content of 2025 Annual Report
impairment of contract
of contract performance
performance cost
cost
Raw 19405535119.5 1484419.99 19404050699.5 24248974369.5 24248974369.5material 1 2 0 0
Products in 8756530523.46 43772343.7 8712758179.70 14299190002.9 14224025311.8process 6 5 75164691.08 7
Commodity 5257352277.10 34319017.0inventory 8 5223033260.02 5642813644.18 68717646.29 5574095997.89
Semi-
finished
products 77252750.35 77252750.35 353746058.32 19945065.67 333800992.65
shipped in
transit
Work in
process - 2162886.07 2162886.07
outsourced
Low-value
consumable 159032291.33 159032291.33 183875058.61 183875058.61
s
Total 33655702961.7 79575780.8 33576127180.9 44730762019.6 163827403.0 44566934616.55 3 2 3 4 9
(2) Inventory depreciation reserves and contract performance cost impairment provisions
Unit: RMB
Increase in the current period Decrease in the current period
Beginning Ending
Item balance Reversal or Provision Other balance write-off Other
Raw material 1484419.99 1484419.99
Products in
process 75164691.08 43772343.76 75164691.08 43772343.76
Commodity
stocks 68717646.29 174388156.16 208786785.37 34319017.08
Semi-finished
products
shipped in 19945065.67 19945065.67
transit
Total 163827403.04 219644919.91 303896542.12 79575780.83
Specific basis for determining net realizable value and reasons for inventory depreciation reserves of reversal or write-off in the current
period:
Item Specific basis for determining net
Reasons for reversal of Reasons for write-off of
realizable value inventory depreciation inventory depreciation reserves reserves
The net realizable value is determined
Raw materials by the estimated selling price of the The net realizable value of inventories with inventory The inventory with inventory
Products in related finished goods minus estimated
costs to completion estimated selling depreciation reserves increased
depreciation reserves was
process in the previous period consumed/sold in this period expenses and relevant taxes
Finished goods The net realizable value is determined The net realizable value of Inventory with recognized
inventory by the estimated selling price of related inventories with inventory inventory depreciation
finished products minus the estimated depreciation reserves increased reserves was sold during this
195 / 275Full content of 2025 Annual Report
Semi-finished selling expenses and related taxes in the previous period period
products shipped
in transit
8. Other current assets
Unit: RMB
Item Ending balance Beginning balance
VAT input tax to be deducted 5165468990.03 5238332408.47
Business income tax pre-paid 647911993.28 562819947.18
Prepayment of urban construction tax
and surcharges 128988839.74
Silver leasing 1338220113.02
Total 7280589936.07 5801152355.65
9. Long-term equity investment
196 / 275Full content of 2025 Annual Report
Unit: RMB
Increase and decrease in the current period Ending
Beginnin Opening Investment Declared Ending balance of
g balance balance of Other Provision balance provision
Investee (book impairment Additional Reduced
gains or losses Other comprehensive distribution
investment investment recognized income equity of cash
for Other (book for
value) provision under the adjustments changes dividends
impairme value) impairme
equity method or profits nt nt
I. Joint Venture
II. Associated enterprise
Zhejiang
Yisheng
Petrochem 2768912144.61 1169067.55 695013.46
2770776
ical Co. 225.62
Ltd.Ningbo
Hengyi 7787340 -68344439.77 2622288.02 1215124Trading 1.26 9.51
Co. Ltd.Zhejiang
Xiaoshan
Rural 2690000 43654510. 293119540.92 -115801856.11 2823663Commerci 655.85 65 830.01
al Bank
Co. Ltd.Hainan
Yisheng
Petrochem 3529633 3510787
ical Co. 126.07
-27586632.608740960.05453.52
Ltd.ZPC-ENN
(Zhoushan 1420972 7264128.67 2147385) Gas Co. 4.51 3.18
Ltd.Zhejiang
Dingshen
g 6105682
5.7114145673.58
7520249
Petrochem 9.29
ical
Engineeri
197 / 275Full content of 2025 Annual Report
ng Co.Ltd.Zhejiang
Derong 1689692 200000000 1237370.1
Chemicals 28.97 .00 -37723477.00
3324831
422.11
Co. Ltd.Zhoushan
ZPC
Zhougang 7498096 11000000. 12418670.58 216578.22 7661621
Tugboat 9.45 00 8.25
Co. Ltd.Zhejiang
Dongjiang
Green
Petrochem
ical 9880080 1017360
Technolog 3.30 2935209.89 13.19
y
Innovatio
n Center
Co. Ltd.Ningbo
Coastal
Public 4671038. 7500000.0 1128931
Pipe 06 0 -881723.52 4.54
Gallery
Co. Ltd.Zhejiang
Zhenshi
Port 2752840 5000000.0 2802743
Service 3.38
5499029.6303.01
Co. Ltd.Subtotal 9516636 207500000 1453948.3 59654510.321.17 .00 202015047.93 -103743594.58 6 65
9764207
212.23
Total 9516636 207500000 1453948.3 59654510.321.17 .00 202015047.93 -103743594.58
9764207
665212.23
198 / 275Full content of 2025 Annual Report
Recoverable amount determined based on fair value less costs of disposal
□ Applicable R Not applicable
Recoverable amount determined based on the present value of estimated future cash flows
□ Applicable R Not applicable
Reasons for significant inconsistencies between the aforementioned information and the information used in
previous years' impairment tests or external information
Reasons for significant inconsistencies between the information used in previous years' impairment tests and the
actual situation in the current year
Other notes:
10. Investment properties
(1) Investment properties under the cost measurement mode
RApplicable □ Not applicable
Unit: RMB
Item Houses and buildings Total
I. Original book value
1. Initial 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. Ending balance 14286632.00 14286632.00
II. Accumulated depreciation and accumulated amortization
1. Initial balance 4162503.40 4162503.40
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. Ending balance 4433949.40 4433949.40
III. Provision for impairment
1. Initial balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
(2) Other transfer-out
199 / 275Full content of 2025 Annual Report
4. Ending balance
IV. Book value
1. Closing book value 9852682.60 9852682.60
2. Beginning book value 10124128.60 10124128.60
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□ Applicable R Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable R Not applicable
(2) Investment properties under the fair value method
□ Applicable R Not applicable
11. Fixed assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 259757528525.39 232497113015.70
Liquidation of fixed assets
Total 259757528525.39 232497113015.70
(1) Fixed assets
Unit: RMB
Housing and Machinery and Transportation Other
Item buildings equipment facilities equipment Total
I. Original book
value:
1. Initial balance 72152201585.44 221774319419.61 256493419.04 392686132.39 294575700556.48
2. Increase in the
current period 1429130478.00 43957691549.65 28783210.61 51802370.98 45467407609.24
(1) Acquisition 550782.73 390459591.67 27151493.77 50001888.63 468163756.80
(2) Transfer-in
from construction 1428579695.27 43567231957.98 1631716.84 1800482.35 44999243852.44
in progress
3. Decrease in the
current period 2617516.19 299604561.09 2257852.95 1107604.36 305587534.59
(1) Disposal or
scrapping 2617516.19 299604561.09 2257852.95 1107604.36 305587534.59
4. Ending balance 73578714547.25 265432406408.17 283018776.70 443380899.01 339737520631.13
II. Accumulated
depreciation
1. Initial balance 12146723044.18 49402962051.82 211991349.15 305371423.41 62067047868.56
2. Increase in the
current period 3187034687.94 14943396072.78 18600016.98 24291203.26 18173321980.96
(1) Accrual 3187034687.94 14943396072.78 18600016.98 24291203.26 18173321980.96
200 / 275Full content of 2025 Annual Report
3. Decrease in the
current period 1387902.38 256500553.20 1552455.43 936832.77 260377743.78
(1) Disposal or
scrapping 1387902.38 256500553.20 1552455.43 936832.77 260377743.78
4. Ending balance 15332369829.74 64089857571.40 229038910.70 328725793.90 79979992105.74
III. Provision for
impairment
1. Initial balance 11539672.22 11539672.22
2. Increase in the
current period
(1) Accrual
3. Decrease in the
current period 11539672.22 11539672.22
(1) Disposal or
scrapping 11539672.22 11539672.22
4. Ending balance
IV. Book value
1. Closing book
value 58246344717.51 201342548836.77 53979866.00 114655105.11 259757528525.39
2. Beginning book
value 60005478541.26 172359817695.57 44502069.89 87314708.98 232497113015.70
(2) Fixed asset with incomplete property right certificate
Unit: RMB
Item Book value Reasons for incomplete certificates of title
Houses and buildings - Shengyuan Chemical Fiber
Polymer Building etc. 1105191016.71 Still being processed
Houses and buildings - tank farm supporting buildings
and others of ZPC 350166852.85 Still being processed
Houses and buildings - ZPC dormitories 550038101.64 Still being processed
Houses and buildings - office buildings and others of
Yisheng Dahua Petrochemical Co. Ltd. 419860637.72 Still being processed
Houses and buildings -film warehouse and others of
Zhejiang Yongsheng Technology Co. Ltd. 208214271.33 Still being processed
Subtotal 2633470880.25
(3) Impairment test of fixed assets
□ Applicable R Not applicable
12. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 36209167814.50 42746526646.14
Engineering materials 1644999844.70 1289605450.14
201 / 275Full content of 2025 Annual Report
Total 37854167659.20 44036132096.28
(1) Construction in progress
202 / 275Full content of 2025 Annual Report
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance impairment Book value Book balance impairment Book value
1.4 million tons ethylene and downstream
chemical plant (optimization of product 15446802951.63 15446802951.63
structure of Phase II project)
High performance resin project 10192664303.89 10192664303.89 12950188181.48 12950188181.48
High-end new material project 8287858489.43 8287858489.43 3140188910.32 3140188910.32
Jintang New Material Project 10812301008.98 10812301008.98 4335769983.60 4335769983.60
Utilities and supporting facilities 2141303341.61 2141303341.61 899607272.74 899607272.74
Sporadic projects 4775040670.59 4775040670.59 5009820862.42 5009820862.42
Functional polyester film expansion project
with an annual output of 250000 tons per 964148483.95 964148483.95
year
Total 36209167814.50 36209167814.50 42746526646.14 42746526646.14
203 / 275Full content of 2025 Annual Report
(2) Changes in major construction in progress in the current period
Unit: RMB
Amount Including
Budget of fixed Other Proportio : Interest
number Increase assets decreases n of total
Accumula Capitalize capitaliza
Beginning in the carried in the Ending project Project ted
Project (RMB balance current over in current balance input to progress capitalize
d amount tion rate Source of
100 period the period the d amount
of interest in the funds
of interest in the current million) current [note] budget current period
period period
High performance Bank
resin project 192.00
1295018 1596798 4354322 1019266 83.95% 85.00% 6049866 26965328181.48 773.24 650.83 4303.89 95.22 31.89 2.54% loans Others
High-end new Bank
material project 420.00
3140188514766982878583206191
910.32 579.11 489.43 21.93% 20.00% 0.52 loans Others
Jintang New Material 675.00 4335769 8380838 1904307 1081230 17.78% 17.00% 2987439 2542918
Bank
Project 983.60 372.43 347.05 1008.98 04.22 02.48 2.59% loans Others
Utilities and 8996072 1720437 1596267 2141303 3573420 3261339 Bank
supporting facilities 72.74 3131.35 7062.48 341.61 10.28 70.56 2.57% loans Others
Total 1287.00 2132575 3232967 2031699 1904307 3143412 1293134 85007904348.14 9856.13 9713.31 347.05 7143.91 520.24 04.93
[Note] Other reductions are due to the disposal of subsidiary Rongsheng Energy (Zhoushan) Co. Ltd. during the period resulting in the corresponding transfer of construction in progress.
(3) Impairment test of construction in progress
□ Applicable R Not applicable
204 / 275Full content of 2025 Annual Report
(4) Engineering materials
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance impairment Book value Book balance impairment Book value
Special 1639663143. 1639663143. 1019693874. 1019693874.materials 93 93 99 99
Special
equipment 5336700.77 5336700.77 269911575.15 269911575.15
Total 1644999844. 1644999844. 1289605450. 1289605450.70 70 14 14
13. Right-of-use assets
(1) Situation of right-of-use assets
Unit: RMB
Item Housing and buildings Total
I. Original book value
1. Initial balance 280851790.98 280851790.98
2. Increase in the current period 37205556.76 37205556.76
(1) Leased 37205556.76 37205556.76
3. Decrease in the current period 231847823.38 231847823.38
(1) Contract termination and transfer 231847823.38 231847823.38
4. Ending balance 86209524.36 86209524.36
II. Accumulated depreciation
1. Initial balance 104613969.43 104613969.43
2. Increase in the current period 25664568.99 25664568.99
(1) Accrual 25664568.99 25664568.99
3. Decrease in the current period 71131086.06 71131086.06
(1) Disposal
(2) Termination of contract and transfer 71131086.06 71131086.06
4. Ending balance 59147452.36 59147452.36
III. Provision for impairment
1. Initial balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV. Book value
1. Closing book value 27062072.00 27062072.00
205 / 275Full content of 2025 Annual Report
2. Beginning book value 176237821.55 176237821.55
(2) Impairment test of right-of-use assets
□ Applicable R Not applicable
14. Intangible assets
(1) Intangible assets
Unit: RMB
Item Land-use right Patent Management Pollution Sea area use software dumping right right Total
I. Original book
value
1. Initial
balance 9094956244.42 5879510.85 63139236.32 138676630.67 32334333.26
9334985955.5
2
2. Increase in
the current 1402084570.88 12741359.27 25991564.22 1440817494.3
period 7
(1) Acquisition 1390838560.50 12741359.27 25991564.22 1429571483.99
(2) Internal
R&D
(3) Increase due
to business
merger
(4) Other
increase[Note 1] 11246010.38 11246010.38
3. Decrease in
the current 263045842.20 67233802.53 17241899.76 347521544.49
period
(1) Disposal 67233802.53 5995889.38 73229691.91
(2) The disposal
of subsidiaries 263045842.20 263045842.20
[Note 2]
(3) Other
decrease[Note 11246010.38 11246010.38
1]
4. Ending 10233994973.1 5879510.85 63139236.32 84184187.41 41083997.72 10428281905.balance 0 40
II. Accumulated
amortization
1. Initial
balance 1034947065.36 4731712.14 35888850.92 112071849.07 4565383.23
1192204860.7
2
2. Increase in
the current 200040717.60 188679.24 5864765.95 15212471.30 9545752.33 230852386.42
period
(1) Accrual 199759567.35 188679.24 5864765.95 15212471.30 9545752.33 230571236.17
(2) Other 281150.25 281150.25
206 / 275Full content of 2025 Annual Report
increase[Note 1]
3. Decrease in
the current 7724319.96 66462431.41 6277039.63 80463791.00
period
(1) Disposal 66462431.41 5995889.38 72458320.79
(2) The disposal
of subsidiaries 7724319.96 7724319.96
[Note 2]
(3) Other
decrease[Note 281150.25 281150.25
1]
4. Ending
balance 1227263463.00 4920391.38 41753616.87 60821888.96 7834095.93
1342593456.1
4
III. Provision
for impairment
1. Initial
balance
2. Increase in
the current
period
(1) Accrual
3. Decrease in
the current
period
(1) Disposal
4. Ending
balance
IV. Book value
1. Closing book
value 9006731510.10 959119.47 21385619.45 23362298.45 33249901.79
9085688449.2
6
2. Beginning
book value 8060009179.06 1147798.71 27250385.40 26604781.60 27768950.03
8142781094.8
0
[Note 1] This refers to the transfer of the original value and amortization category adjustment corresponding to the
change from the original sea area use right to the land use right.[Note 2] This refers to the transfer of the original value and accumulated amortization of the corresponding
intangible assets from the disposal of Rongsheng Energy (Zhoushan) Co. Ltd.
(2) Land-use right for which the certificate of title has not been obtained
Unit: RMB
Item Book value Reasons for incomplete certificates of title
Land-use right 1154268003.61 Still being processed
Subtotal 1154268003.61
(3) Impairment test of intangible assets
□ Applicable R Not applicable
207 / 275Full content of 2025 Annual Report
15. Deferred income tax assets deferred income tax liabilities
(1) Deferred income tax assets before offset
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for
impairment of assets 132087595.85 20051007.82 436276327.17 74249543.63
Unrealized profits from
internal transactions 174555812.58 40826277.11 99854988.15 18235948.62
Deductible uncovered
loss 9919705630.57 1781179358.45 8534688742.74 1550960099.21
Changes in fair value
of trading financial
instruments and 49347430.82 10013897.63 331739047.49 49815680.12
derivative financial
instruments
Deferred income 386404952.54 58738520.64 191230102.07 29528959.74
Lease liabilities 37729036.17 5659355.43 182212003.42 27331800.51
Approximate liabilities 43782604.66 6567390.70
Total 10743613063.19 1923035807.78 9776001211.04 1750122031.83
(2) Deferred income tax liabilities before offset
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
One-time pre-tax
deduction of long-term 9209739455.74 1381460918.36 10046188810.96 1506928321.65
assets
The parent company
reflected at the level of
consolidated
statements invests the
borrowing as paid-in
capital into the
subsidiary company 1962158305.99 309663627.22 2066452064.88 319599270.81
which serves as the
borrowing interest for
the capitalization of
long-term asset
construction.Changes in fair value
of trading financial
instruments and 273896236.86 43092081.30 432807147.83 64977475.17
derivative financial
instruments
Right-of-use assets 24803704.50 3720555.68 168620191.32 25293028.70
Government subsidies 409020000.00 102255000.00 694020000.00 173505000.00
208 / 275Full content of 2025 Annual Report
Fixed asset
abandonment costs 31795008.79 4769251.32
Total 11911412711.88 1844961433.88 13408088214.99 2090303096.33
(3) Deferred income tax assets or liabilities presented as net amount after offset
Unit: RMB
Ending offset amount Ending balance of Beginning offset Beginning balance of
Item of deferred income deferred income tax amount of deferred deferred income tax tax assets and assets and liabilities income tax assets and assets and liabilities
liabilities after offset liabilities after offset
Deferred income tax
assets 220727340.51 1702308467.27 512945754.55 1237176277.28
Deferred income tax
liabilities 220727340.51 1624234093.37 512945754.55 1577357341.78
(4) Details of unrecognized deferred income tax assets
Unit: RMB
Item Ending balance Beginning balance
Deductible loss 2522179464.04 3061760213.17
Changes in fair value of trading financial
instruments and derivative financial 205609926.17 468838.23
instruments
Deferred income 6301607.06 7399864.22
Provision for impairment of assets 2236985.97 45827362.55
Lease liabilities 2623049.76 10610567.21
Total 2738951033.00 3126066845.38
(5) The deductible loss of unrecognized deferred income tax assets will expire in the following year
Unit: RMB
Year Ending amount Beginning amount
2025869483144.03
2026614211325.04852118955.75
20271092058167.721094476141.77
2028100185870.06104227489.45
2029173281724.51141454482.17
2030542442376.71
Total 2522179464.04 3061760213.17
16. Other non-current assets
Unit: RMB
209 / 275Full content of 2025 Annual Report
Ending balance Beginning balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Prepayment
for purchase
of long-term 3478664190.30 3478664190.30 2936356587.96 2936356587.96
assets
Rental value
of silver 990467185.82 990467185.82
leased in
Total 3478664190.30 3478664190.30 3926823773.78 3926823773.78
17. Assets with ownership or use rights restricted
Unit: RMB
Period end Period beginning
Item Book Book Restriction Restriction Book Book Restriction Restriction
balance value type situation balance value type situation
Letter of Letter of
credit bank credit bank
acceptance acceptance
Monetary 63067160 63067160 Fund bill 18895525 18895525 Fund bill
fund 5.40 5.40 occupation guarantees 85.00 85.00 occupation guarantee
loans and and
ETC borrowing
deposits deposit
Collateral Collateral
Fixed 29476294 23248040 for for
assets 5671.06 5403.84 Mortgage borrowings
2546457720834697
8826.31 1958.41 Pledge borrowings and letters and letters
of credit of credit
Collateral Collateral
Intangible 61366630 54361310 for 62294135 56298061 for
assets 87.37 65.75 Mortgage borrowings Pledge borrowings and letters 56.02 56.03 and letters
of credit of credit
Collateral Collateral
Constructio
n in 14296159 14296159
for
Mortgage borrowings 29474930 29474930
for
065.39 065.39 368.68 368.68 Pledge borrowings progress and letters and letters
of credit of credit
Accounts Bank
receivable 57470000. 57470000. Pledge acceptance
financing 00 00 bills as collateral
Total 31582643 25284336 29229714 245398739429.22 7140.38 5336.01 1068.12
18. Short-term borrowings
Unit: RMB
Item Ending balance Beginning balance
210 / 275Full content of 2025 Annual Report
Guaranteed borrowings 47763339280.37 40887276581.01
Credit borrowings 2433317607.22 3203693222.22
Total 50196656887.59 44090969803.23
19. Trading financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Trading financial liabilities 1269256561.53
Including: Fair value of leased silver 1269256561.53
Total 1269256561.53
20. Derivative financial liabilities
Unit: RMB
Category Ending balance Beginning balance
Paper futures contract 244350092.55 34655378.23
Foreign exchange derivatives 10607264.44
Total 254957356.99 34655378.23
21. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Banker's acceptance 1823730094.93 3204293497.95
Total 1823730094.93 3204293497.95
22. Accounts payable
Unit: RMB
Item Ending balance Beginning balance
Payable for material procurement and operation 50890431082.24 50482691896.90
Payable for purchase of long-term assets 8068097593.71 8550137922.21
Total 58958528675.95 59032829819.11
23. Other payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 8699387532.24 6588756879.48
Total 8699387532.24 6588756879.48
211 / 275Full content of 2025 Annual Report
1) Other payables listed by the nature of payment
Unit: RMB
Item Ending balance Beginning balance
Current accounts 7418563934.03 5548635694.24
Deposit and security 995066265.07 916055524.03
Settled but unpaid operating expenses 267785214.09 110443622.88
Other 17972119.05 13622038.33
Total 8699387532.24 6588756879.48
There were no significant other payables with an aging of more than one year at the end of the period.
24. Contract liabilities
Unit: RMB
Item Ending balance Beginning balance
Payments for goods 4083450306.60 5995580462.05
Total 4083450306.60 5995580462.05
There were no significant other payables with an aging of more than one year at the end of the period.
25. Employee compensation payable
(1) Presentation of employee compensation
Unit: RMB
Increase in the Decrease in the
Item Beginning balance current period current period Ending balance
I. Short-term
compensation 984064165.64 3901114800.97 3845640343.64 1039538622.97
II. Post-employment
benefits - defined 12745112.85 185526254.41 111995025.35 86276341.91
contribution plan
III. Dismissal welfare 1252777.38 1252777.38
Total 996809278.49 4087893832.76 3958888146.37 1125814964.88
(2) Short-term remuneration
Unit: RMB
Increase in the Decrease in the
Item Beginning balance current period current period Ending balance
1. Wage bonus
allowance and subsidy 975036853.98 3702310454.28 3653172276.70 1024175031.56
2. Employee welfare
expenses 20720231.70 20720231.70
3. Social insurance
premium 7846287.59 106291583.83 100164656.25 13973215.17
Including: Medical 7046508.11 94144501.46 93398353.79 7792655.78
212 / 275Full content of 2025 Annual Report
insurance premium
Work-related injury
insurance premium 799779.48 11778925.49 6398145.58 6180559.39
Birth insurance
premium 368156.88 368156.88
4. Housing provident
fund 333852.68 50800956.92 50832964.10 301845.50
5. Labor union and
personnel education 847171.39 20991574.24 20750214.89 1088530.74
expenses
Total 984064165.64 3901114800.97 3845640343.64 1039538622.97
(3) Presentation of defined contribution plan
Unit: RMB
Increase in the Decrease in the
Item Beginning balance current period current period Ending balance
1. Basic endowment
insurance 12326595.56 179901504.77 108575136.20 83652964.13
2. Unemployment
insurance premium 418517.29 5624749.64 3419889.15 2623377.78
Total 12745112.85 185526254.41 111995025.35 86276341.91
26. Taxes payable
Unit: RMB
Item Ending balance Beginning balance
Value-added tax 443795758.28 13254307.86
Consumption tax 1573882352.93 747606263.37
Enterprise income tax 69159122.59 89950544.34
Individual income tax 14067513.97 15562859.71
Urban maintenance and construction tax 126276135.66 98714225.59
Property tax 37468119.44 34022887.00
Land use tax 120812522.26 116305831.44
Education surcharge 52441911.63 42653919.65
Local education surcharge 34962574.35 28437246.39
Stamp duty 54838753.97 67254962.09
Deed tax 30862764.00 20953566.00
Environmental protection tax 3140039.05 3145855.20
Resource tax 16990.20
Renewable energy development fund 68624617.30
Special fund for water conservancy
construction 14818413.21
Total 2645167588.84 1277862468.64
Other notes:
213 / 275Full content of 2025 Annual Report
27. Non-current liabilities due within one year
Unit: RMB
Item Ending balance Beginning balance
Long-term borrowings due within one
year 35425986183.65 38301297104.65
Lease liabilities due within one year 40352085.93 21198112.29
Total 35466338269.58 38322495216.94
28. Other current liabilities
Unit: RMB
Item Ending balance Beginning balance
Output tax to be transferred 513369770.13 742351889.84
Silver leased in 1353959243.79
Total 1867329013.92 742351889.84
29. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
Item Ending balance Beginning balance
Mortgage borrowings 187683275.31
Guaranteed borrowings 32766114434.02 25309274718.75
Credit borrowings 1085305275.56 874673819.84
Pledged and Guaranteed Loans 447201294.11
Mortgage and guarantee borrowings 88160580304.01 93146709048.51
Total 122459201307.70 119518340862.41
Description of classification of long-term borrowings:
[Note] The long-term borrowings of the Company and its subsidiaries include multiple bank borrowings with financial covenants. As
of December 31 2025 the carrying amount of such borrowings was RMB 91260759500. The borrowing agreements require the
Company and its subsidiaries to comply with certain covenants during the borrowing period including but not limited to the debt-to-
asset ratio current ratio and interest coverage ratio. In the event of non-compliance with such covenants these borrowings will become
repayable on demand by the lending banks. The Company and its subsidiaries expect to be in compliance with the aforementioned
covenants.
30. Lease liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease payments 212198297.79
Unacknowledged financial charges -40573839.45
Total 171624458.34
214 / 275Full content of 2025 Annual Report
31. Estimated liablities
Unit: RMB
Item Beginning balance Increase in the current period Reason
Provision for fixed
asset abandonment 43782604.66
Estimated decommissioning costs
for hazardous waste landfills
Total 43782604.66
32. Deferred income
Unit: RMB
Beginning Increase in the Decrease in the Reasons for
Item balance current period current period Ending balance incurrence
Government
subsidies 198629966.29 222954120.00 28877526.69 392706559.60 Related to assets
Total 198629966.29 222954120.00 28877526.69 392706559.60 --
33. Share capital
Unit: RMB
Increase and decrease of this change (+ -)
Conversion
Beginning Ending
balance New issue
Issue of of
bonus provident Other Subtotal balance of shares shares fund into
shares
Total number 101255250
of shares 00.00 -136082746.00 -136082746.00
99894422
54.00
Other notes:
According to the resolutions of the 23rd Meeting of the 6th Board of Directors and the 2024 Annual General Meeting
of Shareholders the Company cancelled 136082746 shares in the special securities account for repurchase
accounting for 1.3440% of the total share capital prior to the cancellation. After the completion of the cancellation
the Company's share capital changed to 9989442254 shares. The cancellation procedures were completed at China
Securities Depository and Clearing Corporation Limited Shenzhen Branch on July 18 2025.
34. Capital reserve
Unit: RMB
Increase in the Decrease in the
Item Beginning balance current period current period Ending balance
Capital premium
(capital stock premium) 10779726139.51 1862121191.31 8917604948.20
Other capital reserves 39840495.53 741513.66 40582009.19
Total 10819566635.04 741513.66 1862121191.31 8958186957.39
Other notes including notes to increase and decrease in the current period and its reasons:
215 / 275Full content of 2025 Annual Report
1) During the current period the Company cancelled partially repurchased shares. The difference between the
repurchase price and the par value of the cancelled shares amounting to RMB 1862121191.31 was recognized
in the capital reserve.
2) Due to other changes in the owner's equity of the associate other than net profit or loss other comprehensive
income and profit distribution the Company's entitled share calculated based on its shareholding ratio amounting
to RMB 741513.66 was recognized in the capital reserve (other capital reserve).
35. Treasury stock
Unit: RMB
Increase in the Decrease in the
Item Beginning balance current period current period Ending balance
Repurchase of public shares 6987008823.24 1998203937.31 4988804885.93
Total 6987008823.24 1998203937.31 4988804885.93
Other notes including notes to increase and decrease in the current period and its reasons:
According to the resolutions of the 23rd Meeting of the 6th Board of Directors and the 2024 Annual General Meeting
of Shareholders the Company cancelled 136082746 shares held in the special securities account for repurchase
and reduced the registered capital accordingly.
36. Other comprehensive income
Unit: RMB
The amount incurred in the current period
Less:
Less: Amount
amount included
included in in other
Amount other comprehe
Beginni incurred comprehens nsive Attributab Attributab
Item ng before ive income incomes Less: le to the le to the
Ending
balance balance current previously previously Income tax parent minority
income and then and then expenses company shareholde
tax transferred transferre after tax rs after tax
into current d into
profit or current
loss retained
earnings
I. Other
comprehensiv
e income that
cannot be
reclassified
into profit or
loss
II. Other
comprehensiv
e income to be 280892 - - -1986860 19422332 4462763.0 86668890.reclassified 216.98 53
into profit or 89.53 6.45 8
loss
Including: 225977 - - 2622288.0 11961157
216 / 275Full content of 2025 Annual Report
other 453.58 1037435 10636588 2 0.98
comprehensiv 94.58 2.60
e income
convertible
into profit or
loss by the
equity method
Translation
difference of
financial 549147 - - - -
statements in 63.40 9494249 87857443. 7085051.1 32942680.foreign 4.95 85 0 45
currency
Total other - - -
comprehensiv 280892216.98 1986860 19422332 4462763.0
86668890.
e income 89.53 6.45 8 53
37. Special reserves
Unit: RMB
Increase in the Decrease in the
Item Beginning balance current period current period Ending balance
Work safety expenses 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 safety production expenses accrued and used
by subsidiaries Yisheng Dahua Petrochemical Co. Ltd. Ningbo Zhongjin Petrochemical Co. Ltd. Zhejiang
Yisheng New Material Co. Ltd. Zhejiang Petroleum & Chemical Co. Ltd. and ZPC Zheyou Technology Co. Ltd.
38. Surplus reserves
Unit: RMB
Increase in the Decrease in the
Item Beginning balance current period current period Ending balance
Statutory surplus
reserve 1270743066.03 1270743066.03
Total 1270743066.03 1270743066.03
39. Undistributed profit
Unit: RMB
Item Current period Prior period
Undistributed profits at the end of the
prior period before the adjustment 28330397005.41 28859818194.51
Add: Net profit attributable to the owner
of the parent company in the current 848314274.77 724484686.45
period
Less: Withdrawal of statutory surplus
reserve 296591421.35
Common stock dividends payable 957229214.20 957314454.20
217 / 275Full content of 2025 Annual Report
Undistributed profit at the end of the
period 28221482065.98 28330397005.41
40.Operating revenue and operating cost
(1)Breakdown
Unit: RMB
The amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary business 306683593941.50 269345217692.08 324687881171.91 287532565333.66
Other businesses 1938724287.53 1578369046.87 1787281436.97 1457978546.89
Total 308622318229.03 270923586738.95 326475162608.88 288990543880.55
Whether the lower of the net profits before and after net of non-recurring gains/losses is negative through audit
□ Yes R No
(2)Breakdown of revenues
1) Breakdown of revenue generated by contracts with customers by goods or service categories
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Oil refining 106317955897.68 81 947962998.84 117855712431.38 97149285936.52
Chemical 117197993998.82 104365 714868.57 121767959624.54 105205550952.93
PTA 31984538546.42 32432288369.04 49677505579.61 50351837995.70
Polyester chemical
fiber film 23394524139.61 23136513191.87 18507338180.98 18195490832.19
Trade and others 29712207312.95 29036189602.45 18659250541.39 18084103124.44
Subtotal 308607219895.48 270918669030.77 326467766357.90 288986268841.78
2) Breakdown of revenue generated by contracts with customers by goods or service time
Unit: RMB
Item Amount in the current period Amount in the previous period
Revenue recognized at a certain point of time 308607219895.48 326467766357.90
Subtotal 308607219895.48 326467766357.90
(3) Information related to performance obligations
Significant Whether Types of Amounts
Timing of payment Nature of the goods Item acting as a
warranties
expected to be
satisfying terms promised to be principal provided by the refunded to
Company and
218 / 275Full content of 2025 Annual Report
performance transferred by the customers by related
obligations Company the Company obligations
Advances
received; the
credit period
for accounts
Sale of Upon receivable is Products meeting national Assurance-type
goods delivery of goods standards
Yes None warranty
generally 30 to
90 days after
product
delivery.
(4) The revenue recognized in the current period included in the opening book value of contract liabilities is RMB
5957766058.33.
(5) Sales revenue and cost from trial operation reported in operating revenue and operating costs
1) Commissioning sales revenue and cost
Unit: RMB
Item Amount in the current period Amount in the previous period
Sales revenue from trial operation 18896371914.55 10302502259.17
Sales cost from trial operation 17203312335.40 9364411482.35
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
The amount incurred in the current Amount incurred in the previous
Item period period
Consumption tax 21117044518.89 21876182863.52
Urban maintenance and construction tax 1482403107.94 1522606490.49
Education surcharge 640029281.30 662539298.03
Property tax 50776295.03 40528943.36
Land use tax 122309826.86 119576761.38
Stamp duty 217696745.83 210664196.49
Local education surcharge 426686187.41 441692865.27
Renewable energy development fund 90275951.83
Environmental protection tax 13378912.59 23560240.64
Water conservancy construction fund 19493680.40
Vehicle and vessel tax 82909.98 88104.29
219 / 275Full content of 2025 Annual Report
Total 24180177418.06 24897439763.47
42. Administrative expenses
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Employee compensation 385945335.38 403637588.16
Office expenses 156526869.94 144753610.00
Depreciation and amortization expense 266481498.86 248918000.60
Insurance premium 126983103.52 140182396.42
Business entertainment expenses 18480643.43 13536625.23
Other 33298552.11 25685474.38
Total 987716003.24 976713694.79
43. Selling expenses
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Employee compensation 125229660.78 143059036.16
Sales business expenses 50753338.29 33491051.89
Other 16023679.49 16562212.76
Total 192006678.56 193112300.81
44. R&D expenses
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Direct input 3497473472.31 3650032751.45
Depreciation and amortization 786549743.03 847644288.46
Employee compensation 578518305.40 582233984.76
Equipment commissioning fee 7560188.27 7362107.00
Others 119145154.50 14210153.93
Total 4989246863.51 5101483285.60
45. Financial expenses
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Interest expense 5829240571.07 7077035657.42
220 / 275Full content of 2025 Annual Report
Interest income -410236488.43 -544687994.07
Exchange gain or loss -43389076.36 239749460.14
Other 241453166.76 359242723.86
Total 5617068173.04 7131339847.35
46. Other income
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Sources generating other incomes period period
Government grants related to assets 28877526.69 23577526.96
Government grants related to income 437428828.18 1077141580.04
Return of fees for withheld individual
income tax 4565718.69 3890671.08
Value-added tax with deduction 785201409.47 1767143763.75
Other 653742.00 151540.00
Total 1256727225.03 2871905081.83
47. Gains on changes in fair value
Unit: RMB
Sources of income from changes in fair The amount incurred in the current Amount incurred in the previous
value period period
Derivative financial assets -110571839.43 -164399967.20
Derivative financial liability -46707605.35 319353476.86
Trading financial liabilities -254957356.99 -34655378.23
Total -412236801.77 120298131.43
48. Investment income
Unit: RMB
Item The amount incurred in the current Amount incurred in the previous period period
Long-term equity investment income
calculated by equity method 202015047.93 244591550.05
Investment income from disposal of
long-term equity investments 32392860.18 10960230.72
Investment income from disposal of
trading financial assets -5577088.36 -24087658.90
Financing discount loss of receivables 488130155.51 -68823737.96
Interest income from related party
lending 332320.74 392911.94
Total 717293296.00 163033295.85
221 / 275Full content of 2025 Annual Report
49. Credit impairment loss
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Bad debt losses 240862048.32 -189106251.69
Total 240862048.32 -189106251.69
50. Asset impairment loss
Unit: RMB
Item The amount incurred in the current Amount incurred in the previous period period
Inventory depreciation loss -219644919.91 -163827403.04
Total -219644919.91 -163827403.04
51. Income from asset disposal
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Sources of asset disposal income period period
Income from disposal of fixed assets 4591406.72 -334956.39
Income from disposal of intangible
assets 5794477.13 17775133.30
Income from disposal of right-of-use
assets 14675073.83
Total 25060957.68 17440176.91
52. Non-operating income
Unit: RMB
The amount incurred in the Amount incurred in the Amount included in non-
Item current period previous period recurring profit or loss of the current period
Income no longer payable 2486922.20 2486922.20
Income from carbon emission
rights 2498025.38 2498025.38
Liquidated damages and
income from compensation 1607801.55 10252421.17 1607801.55
Other 253187.39 218528.74 253187.39
Total 6845936.52 10470949.91 6845936.52
53. Non-operating expenses
Unit: RMB
Item The amount incurred in the Amount incurred in the Amount included in non-
222 / 275Full content of 2025 Annual Report
current period previous period recurring profit or loss of
the current period
External donations 18933492.47 17300000.00 18933492.47
Loss on damage and
scrapping of non-current 28982365.09 362553.03 28982365.09
assets
Late fee 9108859.88 60411769.58 9108859.88
Compensation expenses 30488423.15
Other 227444.02 464403.13 227444.02
Total 57252161.46 109027148.89 57252161.46
54. Income tax expenses
(1) Presentation of income tax expenses
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Income tax expenses in the current period 459568077.53 368480873.10
Deferred income tax expenses -418255438.40 -588084286.39
Total 41312639.13 -219603413.29
(2) Adjustment of accounting profit and income tax expense
Unit: RMB
Item The amount incurred in the current period
Total profits 3290171934.08
Income tax expenses calculated at the applicable tax rate of the
parent company 822542983.52
Impact of different tax rates applied on subsidiaries -251469108.71
Influence of income tax during periods prior to adjustment -68590651.10
Influence of non-taxable income -50919463.85
Impact of non-deductible costs expenses and losses 23947124.29
Impact of using deductible loss on deferred income tax assets
unrecognized in prior periods -38362322.04
Impact of temporary deductible difference or deductible loss on
deferred income tax assets unrecognized in the current period 135357178.25
Impact of R&D cost plus deduction -497519748.64
Tax credit for enterprises' investment in special environmental
protection equipment -33673352.59
Income tax expenses 41312639.13
55. Other comprehensive income
Refer to Note in VII. 36 for details.
223 / 275Full content of 2025 Annual Report
56. Cash flow statement items
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Government subsidies received 1399043731.52 1704903975.77
Recovery of bills letters of credit and
other deposits 939956714.82 1274960321.30
Temporary borrowings received from
Zhejiang Rongsheng Holding Group Co. 1949879600.00 201500000.00
Ltd.Interest income received from bank
deposits 410266738.43 544687994.07
Recovery of operating deposit and
security deposit 533819454.95 243339427.96
Other 71169751.06 29972875.16
Total 5.304135990.78 3999364594.26
Other cash paid related to operating activities
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Payment of bills letters of credit and
other deposits 466721092.11 939955714.82
Repayment of temporary borrowings to
Zhejiang Rongsheng Holding Group Co. 1599879600.00 201500000.00
Ltd.Cash disbursements from administrative
expenses R&D expenses and sales 567189008.42 451840559.05
expenses
Payment of bank charges 234066965.55 273301181.98
Payment of operating deposit and
security deposit 238685745.70 419277649.81
Other 43198502.12 389101702.33
Total 3149740913.90 2674976807.99
(2) Cash related to investment activities
Other cash received related to investment activities
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Recovery of bills letters of credit and
other deposits 8821992.18 58439047.20
Received deposit for project and land 54773713.45 126799650.30
224 / 275Full content of 2025 Annual Report
auction
Recovery of temporary borrowings
interest from ZPC-ENN (Zhoushan) Gas 352260.00 416486.66
Co. Ltd.Total 63947965.63 185655184.16
Important cash received related to investment activities
1) Cash received from recovery of investment funds
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Recovery of cash related to investments
in trading financial assets 4267033716.54 3519097041.94
Total 4267033716.54 3519097041.94
2) Net cash received from disposal of subsidiaries or other operating entities
The amount incurred in the current Amount incurred in the previous
Item period period
Cash and cash equivalents received from
the disposal of subsidiaries during the 508240961.00
current period
Of which: Rongsheng Energy
(Zhoushan) Co. Ltd. 508240961.00
Less: Cash and cash equivalents held by
the subsidiary on the date control was 16657896.91
lost
Of which: Rongsheng Energy
(Zhoushan) Co. Ltd. 16657896.91
Total 491583064.09
Other cash paid related to investment activities
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Payment of deposits related to
engineering and land auctions 75048224.93 115357030.89
Payment of deposits related to
engineering and land auctions; payment
of deposits for bills of exchange letters 13287510.70 26984994.77
of credit etc
Total 88335735.63 142342025.66
Important cash paid related to investment activities
1) Cash paid for the acquisition and construction of fixed assets intangible assets and other long-term assets
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
225 / 275Full content of 2025 Annual Report
Payment for intangible asset acquisition 1429571483.99 487827596.16
Payment for engineering equipment and
other related expenses 41252274501.27 31094388138.24
Total 42681845985.26 31582215734.40
2) Cash paid investments
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Payment for cash related to investments
in trading financial assets 4065134018.39 3524971851.23
Payment for equity investments 207500000.00
Total 4272634018.39 3524971851.23
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Temporary borrowings received from
Zhejiang Rongsheng Holding Group Co. 5229885000.00 3148500000.00
Ltd.Recovery silver leasing deposit 672580625.41
Recovery of borrowing deposit 265000000.00 70908960.00
Recovery of transaction margin and
settlement funds related to share 5895301.00
repurchase
Received proceeds from discounted but
not yet due letters of credit and bills 18250688807.61
Total 6167465625.41 21475993068.61
Other cash paid related to financing activities
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Repayment of temporary borrowings to
Zhejiang Rongsheng Holding Group Co. 3478512304.37 12415012459.99
Ltd.Payment of discounted L/Cs due 4928418224.24
Payment of borrowing deposit 142500000.00
Payment of financing fees 7386201.21 85941541.88
Payments for right-of-use assets 19626043.67 30874272.20
Repayment of entrusted loan and interest
to Zhejiang Yisheng Petrochemical Co. 804453086.65
Ltd.
226 / 275Full content of 2025 Annual Report
Payment for silver leasing deposit 672580625.41
Payment for stock repurchase 367392060.78
Total 8576442773.49 14376254046.91
Notes:
Changes in liabilities arising from financing activities
□ Applicable R Not applicable
57. Supplementary information on cash flow statement
(1) Supplementary information of Cash Flow Statement
Unit: RMB
Supplementary information Current amount Amount of prior period
1. Converting net profit into cash flow
from operating activities:
Net profit 3248859294.95 2125320081.91
Add: Provision for impairment of assets 219644919.91 163827403.04
Credit impairment provisions -240862048.32 189106251.69
Fixed assets depreciation depreciation of
right-of-use assets /oil and gas assets
depletion productive biological assets 17168141226.73 15044994060.83
depreciation
Depreciation of assets with right of use -45466517.07 23864319.63
Amortization of intangible assets 192815818.41 185023887.02
Amortization of long-term deferred
expenses 45701.13
Loss on disposing fixed assets intangible
assets and other long-term assets (gains -25060957.68 -17440176.91
expressed with "-")
Loss from scrapping of fixed assets
(income is presented with "-") 28982365.09 362553.03
Loss from fair value changes (gains
expressed with "-") 412236801.77 -120298131.43
Financial expenses (gains expressed with
"-")5798917434.577412256559.44
Investment loss (gains expressed with "-
")-717293296.00-163033295.85
Decrease in deferred income tax assets
(increase expressed with "-") -465132189.99 -546367399.20
Increase in deferred income tax liabilities
(decrease expressed with "-") 46876751.59 -41716887.19
Decrease in inventories (increase
expressed with “-”) 10461787582.65 16587048796.10
Decrease in operating receivables
(increase expressed with “-”) 1311399792.61 -5370176094.92
Increase in operating payables (decrease
expressed with “-”) 7891843124.31 -796925853.22
Other 73310798.01 -42900850.59
227 / 275Full content of 2025 Annual Report
Net cash flow from operating activities 45406467418.61 34609126604.88
2. Significant investment and financial
activities not involving cash receipts and
payments:
Debt into capital
Convertible corporate bonds due within
one year
Newly added right-to-use assets 37205556.76
3. Net change in cash and cash
equivalents:
Ending balance of cash 12868997873.44 12943832335.45
Less: Beginning balance of cash 12943832335.45 11486855097.52
Add: Ending balance of cash equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash equivalents -74834462.01 1456977237.93
(2) Composition of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 12868997873.44 12943832335.45
Including: cash on hand 1356245.56 1580800.25
Bank deposits available for payment at
any time 12149371258.16 12624073263.80
Other monetary funds available on
demand 718270369.72 318178271.40
III. Ending balance of cash and cash
equivalents 12868997873.44 12943832335.45
(3) Monetary funds that are not cash and cash equivalents
Unit: RMB
Reasons for not cash and cash
Item Current amount Amount of prior period equivalents
These are all deposits for related
Bank acceptance bill deposit 273168500.57 471306867.33 businesses and are subject to
restrictions on use.These are all deposits for related
L/C deposit 214053200.39 475632655.05 businesses and are subject to
restrictions on use.These are all deposits for related
Loan deposit 132500000.00 250000000.00 businesses and are subject to
restrictions on use.These are all deposits for related
Guarantee deposit 1470312.71 20001187.21 businesses and are subject to
restrictions on use.Silver lease deposit 672580625.41 These are all deposits for related
228 / 275Full content of 2025 Annual Report
businesses and are subject to
restrictions on use.Accrued interest on deposits 30250.00 The accrued interest on the deposit
ETC deposit 15000.00 1000.00 ETC frozen funds
Bank deposit 9464591.73 Funds frozen for legal execution
Total 630671605.40 1889552585.00
(4) Changes in liabilities related to financing activities
Unit：RMB 10000
Amount at Increase in the current period Decrease in the current period
Item the
Amount by the
beginning of Cash Non-cash end of the
changes changes Cash changes
Non-cash
the period changes period
Bank loans 20191060.77 14026097.42 756218.22 14017586.06 147605.91[Note] 20808184.44
Other
payables –
Temporary
loans from
Zhejiang 554863.56 522988.50 11855.56 347851.23 741856.39
Rongsheng
Holding
Group Co.Ltd.Other
payables –
Dividends 95722.92 95722.92
payable
Lease
liabilities
(including
lease 19282.26 452.78 1962.60 13737.23 4035.21
liabilities
due within
one year)
Subtotal 20765206.59 14549085.92 864249.48 14463122.81 161343.14 21554076.04
[Note] This refers to the disposal of subsidiary Rongsheng Energy (Zhoushan) Co. Ltd. during the current period
resulting in the corresponding transfer of short-term borrowings.
(5) Major activities that do not involve cash receipts and payments
Item Amount in the current Amount in the previous period period
Amount of commercial bill transferred by endorsement 298543646.34 609274450.40
Of which: payment for goods 278720192.34 434924689.02
payment for the purchase of fixed assets and other
long-term assets 19823454.00 174349761.38
58. Foreign currency monetary items
229 / 275Full content of 2025 Annual Report
(1) Monetary items in foreign currency
Unit: RMB
Ending balance in foreign
Item currencies Conversion exchange rate Ending balance in RMB
Monetary fund 3888676036.54
Including: USD 545496849.03 7.0288 3834188252.46
EUR 5033369.74 8.2355 41452316.49
HKD 416425.69 0.9032 376115.68
SGD 2319152.61 5.4586 12659326.44
GBP 2.70 9.4346 25.47
Accounts receivable 2282118272.83
Including: USD 324681065.45 7.0288 2282118272.83
Other receivables 131663853.92
Including: USD 18732052.97 7.0288 131663853.92
Other payables 254084231.83
Including: USD 36077966.25 7.0288 253584809.18
SGD 91492.81 5.4586 499422.65
Short-term borrowings 536700243.87
Including: USD 76357307.63 7.0288 536700243.87
Accounts payable 10575558853.83
Including: USD 1499146737.49 7.0288 10537202588.47
EUR 3880683.71 8.2355 31959370.69
GBP 678025.00 9.4346 6396894.67
Long-term borrowings 342555838.68
Including: EUR 41595026.25 8.2355 342555838.68
Non-current liabilities due
within one year 2623049.76
Including: USD 373186.00 7.0288 2623049.76
EUR 6399234.82 8.2355 52700898.36
(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.RApplicable □ Not applicable
Company name Place of Recording registration currency Selection basis
Hong Kong Shenghui Co. Ltd. Hong Kong China
Hong Kong Yisheng Dahua Petrochemical Co. Ltd. Hong Kong China
General settlement currency
Yisheng New Materials Trading Co. Ltd. Hong Kong China USD for company operation
Rongsheng Petrochemical (Hong Kong) Co. Ltd. Hong Kong China
230 / 275Full content of 2025 Annual Report
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
RApplicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable R Not applicable
Simplified treatment of short-term leases or rental expenses of low-value assets
RApplicable □ 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.
30 of these financial statements. The amounts of short-term lease expense and low-value asset lease expense
included in the current profit or loss are as follows:
Unit: RMB
Item Amount in the current period Amount in the previous period
Short-term lease expense 42532812.69 23582427.12
Total 42532812.69 23582427.12
3) Current profit or loss and cash flow related to leasing
Unit: RMB
Item Amount in the current period Amount in the previous period
Interest expense on lease liabilities 4527828.55 8158128.24
Total cash outflow related to leasing 62261364.30 55525318.25
3) The maturity analysis of lease liabilities and the corresponding liquidity risk management are detailed in
Note XII. 1. (2) of these financial statements.
(2) The Company as the lessor
Operating lease as lessor
RApplicable □ Not applicable
1) Leasing revenue
Unit: RMB
Item Leasing revenue
Leasing revenue 15098333.55
Total 15098333.55
231 / 275Full content of 2025 Annual Report
2) Operating leasing assets
Unit: RMB
Item Amount at the end of the period Amount at the beginning of the period
Intangible Assets 38962413.71 40325815.56
Investment Properties 9852682.60 10124128.60
Subtotal 48815096.31 50449944.16
Financial lease as lessor
□ Applicable R Not applicable
Undiscounted lease receipts for each of the next five years
RApplicable □ Not applicable
Unit: RMB
Undiscounted annual lease receivables
Item
Ending amount Beginning amount
Year 1 2137089.00 2137089.00
Year 2 2137089.00 2137089.00
Year 3 2137089.00 2137089.00
Year 4 2137089.00 2137089.00
Year 5 2172707.00 2137089.00
Total amount of undiscounted lease
receipts after five years 8975772.00 12644441.00
Operating lease assets
Unit: RMB
Item Ending amount Ending amount of last year
Intangible assets 38962413.71 40325815.56
Investment property 9852682.60 10124128.60
Total 48815096.31 50449944.16
(3) Recognition of the profit and loss of financial leasing sales as a manufacturer or distributor
□ Applicable R Not applicable
60. Others
Supplier financing arrangements
(1) Terms and conditions of supplier financing arrangements
232 / 275Full content of 2025 Annual Report
Unit: RMB
Bank Loan amount Borrowing date Payment due date Guarantor
Bank of China Limited Zhejiang Rongsheng
Zhejiang Branch 10000000.00 2025.03.17 2026.03.16 Holding Group Co. Ltd.China Merchants Bank Zhejiang Rongsheng
Limited Dalian Jinpu New 23897401.20 2025.07.18- 2026.01.13-
Area Branch 2025.12.03 2026.06.03
Holding Group Co.Ltd.Export-Import Bank of
China Liaoning Branch 186000000.00 2025.01.26 2026.01.16 The Company
(2) Liability details related to supplier financing arrangements
1) Book value of related liabilities
Unit: RMB
Item Amount by the end of Amount at the beginning the period of the period
Short-term borrowings 219897401.20 502000000.00
Including: Amounts already received by suppliers 219897401.20 502000000.00
Subtotal 219897401.20 502000000.00
2) Payment due date ranges for related liabilities
Unit: RMB
Item Due date range of payment at Due date range of payment at the the end of the period beginning of the period
Liabilities classified under financing arrangements 2026.01.13-2026.06.03 2025.03.17-2025.09.16
3) Non-cash changes in related liabilities
Unit: RMB
Non-cash change type Amount in the current period Amount in the previous period
Reclassification from accounts payable to
short-term borrowings 219897401.20 502000000.00
VIII. R&D expenditure
Unit: RMB
The amount incurred in the current Amount incurred in the previous
Item period period
Direct input 3497473472.31 3650032751.45
Depreciation and amortization 786549743.03 847644288.46
Employee compensation 578518305.40 582233984.76
Equipment commissioning fee 7560188.27 7362107.00
Others 119145154.50 14210153.93
Total 4989246863.51 5101483285.60
Including: expensed R&D expenditure 4989246863.51 5101483285.60
233 / 275Full content of 2025 Annual Report
IX. Consolidation scope changes
1. Disposal of subsidiaries
If there were any transactions or events during this period that resulted in the loss of control over subsidiaries
R Applicable □ Not applicable
Unit: RMB
Difference
between the Determination Amount of other
disposal Carrying
consideration amount of Fair value of
method and comprehensive
Proportion remaining main income related
Disposal Disposal Basis for and the share of remaining equity at the Gain or loss from assumptions for to equity Disposal
Name of consideration proportion
method Date of determining of the equity at the the fair value of investment in
at the date at the losing the date of subsidiary's net
remaining consolidated consolidated remeasurement remaining the former
subsidiary at the date of date of assets at the equity at financial financial of remaining equity at the subsidiary
losing control of losing losing control losing control control consolidated
the date of statement statement equity at fair losing level at the value consolidated transferred to control financial level at the financial investment
statement level control date of losing date of losing statement level income or
corresponding control control at the date of retained
to the disposed losing control earnings
investment
Received the
equity
transfer
Rongsheng payment and
Energy 508240961.00 100.00% Sale December actually (Zhoushan) 26 2025 handed over 32392860.18
Co. Ltd. the operation
and
management
rights
Other notes:
If there were any transactions or events during this period that resulted in the loss of control over subsidiaries
□ Applicable R Not applicable
234 / 275Full content of 2025 Annual Report
2. Changes in consolidation scope for other reasons
1. Increase in consolidation scope
Unit: RMB
Proportion of
Acquisition
Company name Date of equity Subscribed capital subscribed capital method acquisition contribution
contribution (%)
Zhejiang Shenghui New Materials Co.Ltd. New establishment 2025/03/27 20000000.00 100.00
Zhejiang Petrochemical New Materials
(Zhoushan) Co. Ltd. New establishment 2025/10/20 50000000.00 100.00
2. Decrease in consolidation scope
Profit from
Date of Net assets on beginning of Company name Method of equity disposal disposal the disposal date the period to
disposal date
Zhejiang Rongshen New Materials Co. Industrial and commercial
Ltd. deregistration July 31 2024
Zhejiang Shengcheng New Materials Industrial and commercial
Co. Ltd. deregistration July 31 2024
Zhejiang Huiyu New Materials Co. Industrial and commercial
Ltd. deregistration July 31 2024
X. Interests in other entities
1. Rights and interests in subsidiaries
(1) Group composition
Unit: RMB
Name of Registered Principal place of Place of Business
Shareholding ratio Shareholdin
subsidiary capital business registration nature Direct Indirect g ratio
Zhejiang
Shengyuan
Chemical 200000.00 Xiaoshan Xiaoshan Manufacturin
Fiber Co. Zhejiang Zhejiang g
100.00% Setup
Ltd.Zhejiang
Shenghui
New 2000.00 Xiaoshan Xiaoshan Manufacturin
Materials Zhejiang Zhejiang g
100.00% Setup
Co. Ltd.Business
Hong Kong
Shenghui USD Hong Kong Hong Kong
combination
Co. Ltd. 1970.00 China China
Commercial 100.00% under
common
control
Ningbo USD10526. Ningbo Ningbo Manufacturin
Yisheng 00 Zhejiang Zhejiang g
95.00% Setup
235 / 275Full content of 2025 Annual Report
Chemical
Co.Ltd.[Note]
Dalian
Yisheng 201800.00 Dalian Dalian ManufacturinInvestment Liaoning Liaoning g 70.00% Setup
Co. Ltd.Yisheng
Dahua 245645.00 Dalian Dalian ManufacturinPetrochemica Liaoning Liaoning g 84.60% Setup
l Co. Ltd.Hong Kong
Yisheng
Dahua USD10.00 Hong Kong Hong Kong China China Commercial 100.00% Setup Petrochemica
l Co. Ltd.Dalian
Rongxinchen 1000.00 Dalian Dalian g Trading Liaoning Liaoning Commercial 100.00% Setup
Co. Ltd.Zhejiang
Rongtong
Chemical 5000.00 Xiaoshan Xiaoshan Fiber New Zhejiang Zhejiang Commercial 100.00% Setup
Material Co.Ltd.Zhejiang
Rongyi
Chemical 1000.00 Shaoxing Shaoxing Commercial 100.00% Setup
Fiber Co. Zhejiang Zhejiang
Ltd.Dalian
Yisheng New Dalian Dalian Manufacturin
Materials 2000.00 Liaoning Liaoning g 100.00% Setup
Co. Ltd.Ningbo Business
Zhongjin 600000.00 Ningbo Ningbo Manufacturin
combination
Petrochemica Zhejiang Zhejiang g 100.00% under
l Co. Ltd. common control
Ningbo
Niluoshan 36000.00 Ningbo Ningbo ManufacturinNew Energy Zhejiang Zhejiang g 100.00% Setup
Co. Ltd.Zhejiang Business
Yisheng New 300000.00 Ningbo Ningbo Manufacturin
combination
Materials Zhejiang Zhejiang g 51.00% not under
Co. Ltd. common control
Ningbo
Rongxinchen Ningbo Ningbo
g Trading 1000.00 Zhejiang Zhejiang Commercial 100.00% Setup
Co. Ltd.Yisheng New
Materials HKD 100.00 Hong Kong Hong Kong Trading Co. China China Commercial 100.00% Setup
Ltd.Zhejiang 1000.00
Rongyi Ningbo Ningbo
Commercial 100.00% Setup
236 / 275Full content of 2025 Annual Report
Trading Co. Zhejiang Zhejiang
Ltd.Rongsheng
Petrochemica USD
l (Singapore) 10100.00 Singapore Singapore Commercial 100.00% Setup
Pte. Ltd.Rongtong
Logistics
(Singapore) USD 0.0001 Singapore Singapore Commercial 100.00% Setup
Pte. Ltd.Rongsheng
Petrochemica
l (Hong USD 10.00 Hong Kong Hong Kong Commercial 100.00% Setup
Kong) Co.Ltd.Rongsheng
Petrochemica
l Sales Co.Ltd.(formerly 10000.00 Xiaoshan Xiaoshan
Rongsheng Zhejiang Zhejiang
Commercial 100.00% Setup
International
Trade Co.Ltd.)
Zhejiang Business
Petroleum & combination
Chemical 5880000.00
Zhoushan Zhoushan Manufacturin
Zhejiang Zhejiang g 51.00% not under
Co. Ltd. common control
ZPC Zheyou
Technology 41220.00 Zhoushan Zhoushan ManufacturinZhejiang Zhejiang g 70.00% Setup Co. Ltd.Zhejiang
Petroleum &
Chemical USD 10.00 Singapore Singapore Commercial 100.00% Setup
(Singapore)
Pte. Ltd.ZPC Jintang
Logistics 200000.00 Zhoushan Zhoushan Zhejiang Zhejiang Commercial 100.00% Setup Co. Ltd.Zhejiang
ZPC Sales 10000.00 Xiaoshan Xiaoshan
Co. Ltd. Zhejiang Zhejiang
Commercial 100.00% Setup
Zhoushan
ZPC Sales 6000.00 Zhoushan Zhoushan Zhejiang Zhejiang Commercial 100.00% Setup Co. Ltd.Zhoushan
ZPC Trading 6000.00 Zhoushan Zhoushan Zhejiang Zhejiang Commercial 100.00% Setup Co. Ltd.Ningbo ZPC
Sales Co. 1000.00 Ningbo Ningbo Zhejiang Zhejiang Commercial 100.00% Setup Ltd.Taizhou ZPC
Sales Co. 1000.00 Taizhou Taizhou Zhejiang Zhejiang Commercial 100.00% Setup Ltd.ZPC
(Zhejiang 10000.00
Zhoushan Zhoushan
Zhejiang Zhejiang Commercial 100.00% Setup
Free Trade
237 / 275Full content of 2025 Annual Report
Zone) Green
Petrochemica
l Research
Institute Co.Ltd.Zhejiang
ZPC Power 10000.00 Zhoushan Zhoushan ManufacturinGeneration Zhejiang Zhejiang g 100.00% Setup
Co. Ltd.Zhoushan
ZPC 1000.00 Zhoushan Zhoushan Road Logistics Zhejiang Zhejiang transport 100.00% Setup
Co. Ltd.ZPC New
Materials 5000.00 Zhoushan Zhoushan Manufacturin(Zhoushan) Zhejiang Zhejiang g 100.00% Setup
Co. Ltd.Rongxiang
Chemical Xiaoshan Xiaoshan Manufacturin
Fiber Co. 20000.00 Zhejiang Zhejiang g 100.00% Setup
Ltd.Zhejiang Business
Yongsheng Shaoxing Shaoxing Manufacturin combination
Technology 102000.00 Zhejiang Zhejiang g 70.00% not under
Co. Ltd. common control
Hainan
Rongsheng
International 10000.00 Danzhou Danzhou Hainan Hainan Commercial 100.00% Setup Trade Co.Ltd.Rongsheng
Chemical 5000.00 Shanghai Shanghai (Shanghai) China China Commercial 100.00% Setup
Co. Ltd.Rongsheng
New
Materials 1000000.00 Zhoushan Zhoushan ManufacturinZhejiang Zhejiang g 100.00% Setup (Zhoushan)
Co. Ltd.Rongsheng
New
Materials 100000.00 Taizhou Taizhou Manufacturin 90.00% Setup
(Taizhou) Zhejiang Zhejiang g
Co. Ltd.[Note] The company completed its deregistration procedures on February 5 2026.
(2) Major non-wholly owned subsidiaries
Unit: RMB 10000
Profit or loss Dividend announced
Shareholding ratio of attributable to to be distributed to Ending balance of
Name of subsidiary minority shareholders minority shareholders minority shareholders minority equity
in the current period in the current period
Dalian Yisheng
Investment Co. Ltd. 30.00% -5032.29 195810.01
238 / 275Full content of 2025 Annual Report
Yisheng Dahua
Petrochemical Co. 15.40% -1948.53 99220.18
Ltd.Zhejiang Yisheng New
Materials Co. Ltd. 49.00% -16248.19 70855.17
Zhejiang Petroleum &
Chemical Co. Ltd. 49.00% 265728.67 4942960.33
Explanation regarding the difference between the shareholding ratio and voting rights ratio of minority shareholders in subsidiaries:
Other notes:
239 / 275Full content of 2025 Annual Report
(3) Main financial information of important partially-owned subsidiaries
Unit: RMB
Ending balance Beginning balance
Name of
subsidiary Current
Non- Current Non-current Total Current Non- Current Non- Total
assets current Total assets current Total assets current liabilitieassets liabilities liabilities liabilities assets assets liabilities liabilities s
Dalian
Yisheng 4828225 10297683 15125909 61853658 1611043757 7796409627 7147381977 10529906 17677288 88368103 13122534 101490
Investment 707.65 849.21 556.86 69.57 .86 .43 .77 295.30 273.07 17.71 21.18 63738.8
Co. Ltd. 9
Yisheng
Dahua
Petrochem 6662541 67876950 13450236 61844454 1611043757 7795489240 8982897616 70010718 15983969 88350750 13122534
101473
ical Co. 224.93 79.30 304.23 82.27 .86 .13 .49 52.84 469.33 77.46 21.18
28498.6
4
Ltd.Zhejiang
Yisheng
New 2412364 80641918 10476556 67325328 2295362794 9027895608 2274146496 84607199 10734866 68015006 21501494 895165
Materials 347.49 62.92 210.41 13.86 .40 .26 .09 14.06 410.15 56.59 94.40 0150.99
Co. Ltd.Zhejiang
Petroleum
&34394732600236822944184159813388795987210921941210981495317079624476932929430103795805922103580777
199386
Chemical 3040.39 707.64 748.03 242.09 7.65 69.74 7.86 281.62 249.48 176.62 338.89
699515.
51
Co. Ltd.Unit: RMB
The amount incurred in the current period Amount incurred in the previous period
Name of Total Cash flow from Cash flow
subsidiary Operating income Net profit comprehensive financing
Total comprehensive from
Operating income Net profit
income activities income financing activities
Dalian Yisheng -
Investment Co. Ltd. 22100890559.26 -193628737.06 -198724604.75 905224634.19 31819742678.09 -153495879.83 -171918062.19 1369513418.04
Yisheng Dahua 22100890559.26 -168057078.85 -181893906.59 904538886.29 31819742678.05 -230059520.50 -221017533.82 -
Petrochemical Co. 1371960815
240 / 275Full content of 2025 Annual Report
Ltd. .44
Zhejiang Yisheng
New Materials Co. 28239886546.10 -331595708.16 -334555657.01 721841670.51 32266524499.34 -510465274.41 -508777661.78 746383950.4
Ltd. 0
Zhejiang Petroleum
& Chemical Co. 237594537029.74 5308198214.74 5308215097.95
43363954579.5
5261747883222.193542480099.593545466729.89
4514892830
Ltd. 8.69
Other notes:
241 / 275Full content of 2025 Annual Report
2. Equity in joint venture arrangement or joint venture
(1) Important joint ventures or associated enterprises
Name of the joint Principal Place of Shareholding ratio Accounting method for
venture or associated place of registrati Business investments in joint ventures
enterprise business on nature Direct Indirect and associated enterprises
Zhejiang Yisheng Ningbo Ningbo
Petrochemical Co. Ltd. Zhejiang Zhejiang 16.07% 13.93% 16.07%
Accounting by the equity
method
Hainan Yisheng Yangpu Yangpu Accounting by the equity
Petrochemical Co. Ltd. Hainan Hainan 50.00% method
Zhejiang Xiaoshan
Rural Commercial Bank Xiaoshan Xiaoshan Accounting by the equity
Co. Ltd. Zhejiang Zhejiang
9.71% 9.71% method
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 important associated enterprise
Unit: RMB
Ending balance/amount incurred in the current Beginning balance/amount incurred in the prior
period period
Zhejiang Hainan
Zhejiang Zhejiang Zhejiang
Yisheng Yisheng Xiaoshan Yisheng Hainan Yisheng Xiaoshan
Petrochemical Petrochemical Rural Petrochemica Petrochemical Rural
Co. Ltd. Co. Ltd. Commercial l Co. Ltd. Co. Ltd. Commercial Bank Co. Ltd. Bank Co. Ltd.Current assets 17792530387 9484789190. 28255753742 1800794347 8131053257.4 26065228118.01 11 3.38 8.45 9 3.67
Non-current 2388584085. 10913624377 12781370694 2741961606. 11585208302. 13119101348
assets 75 .07 0.77 23 00 4.36
Total assets 20181114472 20398413567 41037124436 2074990508 19716261559. 39184329466.76 .18 4.15 4.68 49 8.03
Current 9823745603. 9172781271. 35632416302 1057354659 8089815969.6 33554794225
liabilities 06 47 9.04 2.33 1 1.55
Non-current 1159026774. 4396203584. 24786420361 984230000.0 4755208149.6 28342070574
liabilities 00 26 .14 0 8 .28
Total liabilities 10982772377 13568984855 38111058339 1155777659 12845024119. 36389001282.06 .73 0.18 2.33 29 5.83
Minority equity
Shareholders'
equity
attributable to 9198342095. 6829428711. 29031687517 9192128492. 6871237440.2 27640173446
the parent 70 45 .15 35 0 .18
company
Share of net
assets 2759502628. 3414714355. 2819557491. 2757638547. 3435618720.1 2684413645.
242 / 275Full content of 2025 Annual Report
calculated by 71 73 67 71 0 09
the
shareholding
ratio
Adjustments
- Goodwill 102420730.97 4040414.35 102420730.97 4040414.35
- Unrealized
profits from
internal -6347633.17 -8406325.00
transactions
- Others 11273596.89 65923.99 11273596.89 1546596.41
Book value of
equity
investment in 2770776225. 3510787453. 2823663830. 2768912144. 3529633126.0 2690000655.associated 62 52 01 61 8 85
enterprise
Fair value of
equity
investment in
associated
enterprise with
the public offer
Operating 12110772105 25474396151 7209278102. 1524658317 32134063244. 7600481397.income .57 .16 23 6.45 75 91
Net profit 3896891.82 -59290648.85 3057601847. 214587933.5 143801867.13 3047587610.25 9 27
Net profit from
termination of
operation
Other -
comprehensive 2316711.53 17481920.10 1192383917. -1402727.06 -54928338.09 1509122219.income 22 37
Total
comprehensive 6213603.35 -41808728.75 1865217930. 213185206.5 4556709829.income 03 3
88873529.0464
Dividends
received from
associated 43654510.65 13228639.60
enterprises in
the current year
(3) Summary financial information of unimportant joint ventures and associated enterprises
Unit: RMB
Ending balance/amount incurred in Beginning balance/amount incurred in
the current period the prior period
Associated enterprise:
Total of the following items calculated as
per the respective shareholding proportion
Joint venture:
Total book value of investments 658979703.08 528090394.63
Total of the following items calculated as
per the respective shareholding proportion
243 / 275Full content of 2025 Annual Report
- Net profit -64686927.94 -184812258.20
- Other comprehensive income 2622288.02 -8239250.71
- Total comprehensive income -62064639.92 -193051508.91
XI. Government grants
1. At the end of the reporting period government grants recognized according to the amount receivable
R Applicable □ Not applicable
Item Book balance at the end of the period
Grants receivable 1012056416.00
Subtotal 1012056416.00
2. Reasons for failure to receive the estimated amount of government grants at the expected time
R Applicable □ Not applicable
As of the approval date of this financial report the Company had received subsidies totaling RMB 27240000.00
with an outstanding balance of grants receivable of RMB 984816416.00 pending payment arrangement by the
fiscal authority..
3. Liability items involving government subsidies
RApplicable □ Not applicable
Unit: RMB
Amount of Amount included in Amount carried Other Accounting Beginning additional forward to other change in Ending Related to
subject balance subsidy in current non-operating income in current balance
assets/incom
current period income current period period
e
Deferred 198629966 222954120.00 28877526.69 392706 Related to
income .29 559.60 assets
Subtotal 198629966.29 222954120.00 28877526.69
392706
559.60
4. Government grants included in current profits and losses
RApplicable □ Not applicable
Unit: RMB
Accounting subject The amount incurred in the current Amount incurred in the previous period period
Amount of government subsidies
included in other income 466306354.87 1100719107.00
Impacted amount of financial discount
on total profit 5679738.65 9529900.00
Total 471986093.52 1110249007.00
Other notes:
244 / 275Full content of 2025 Annual Report
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 ordinary course of business 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:
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-
245 / 275Full content of 2025 Annual Report
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 VII. 3 and VII. 5 of the financial statements for details.
4. Credit risk exposure and credit risk concentration
The credit risk to the Company mainly comes from monetary funds and accounts receivable. In order to control
the above related risks the Company has taken the following measures respectively.
(1) Monetary fund
The Company deposits bank deposits and other monetary funds in financial institutions with high 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 2025 the Company has
a certain credit concentration risk because 68.22% (December 31 2024: 49.37%) 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 book value 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.Unit: RMB
Amount by the end of the period
Item
Book value Undiscounted contract price Within 1 year 1-3 years Above 3 years
Bank
loans 208081844378.94 223180050527.12 89146010577.88 69745071623.40 64288968325.84
Derivative
financial 254957356.99 254957356.99 254957356.99
liability
Notes
payable 1823730094.93 1823730094.93 1823730094.93
Accounts
payable 58958528675.95 58958528675.95 58958528675.95
246 / 275Full content of 2025 Annual Report
Other
payables 8699387532.24 8699387532.24 8699387532.24
Lease
liabilities 40352085.93 40844299.63 40844299.63
Subtotal 277858800124.98 292957498486.86 158923458537.62 69745071623.40 64288968325.84
(Cont.)
Amount at the beginning of the period
Item
Book value Undiscounted contract price Within 1 year 1-3 years Above 3 years
Bank
loans 201910607770.29 220409646422.41 85781763934.67 65369822673.33 69258059814.41
Trading
financial 1269256561.53 1269256561.53 1269256561.53
liabilities
Derivative
financial 34655378.23 34655378.23 34655378.23
liability
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
(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 rate risk and foreign exchange risk.
1. Interest rate risk
Interest rate risk refers to the risk that the fair value of financial instruments or cash flow in the future 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 rate risk and the interest-bearing financial instruments with floating
interest rates expose the Company to cash flow interest rate risk. The Company determines the ratio of fixed interest
rate and floating 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 rate
risk faced by the Company is mainly related to the bank borrowings with floating interest rates.As of December 31 2025 the bank borrowings with a floating interest rate of the Company are RMB
152924.5162 million and EUR 47.9943 million (December 31 2025: RMB 155681.1217 million and EUR
54.3935 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 exchange risk
Foreign exchange 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
247 / 275Full content of 2025 Annual Report
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 to the Financial Statements VII. 58 to the financial statements.
2. Financial assets
(1) Classification by transfer method
RApplicable □ Not applicable
Unit: RMB
Nature of transferred Amount of Judgment basis for
Transfer method financial assets transferred financial Derecognition status assets derecognition
Bill discounting Accounts receivable
Substantially all risks
3397893145.26
financing De-recognition and rewards have been transferred
Substantially all risks
Bill endorsement Accounts receivable 262183180.12 financing De-recognition and rewards have been transferred
Total 3660076325.38
(2) Financial assets derecognized due to transfer
RApplicable □ Not applicable
Unit: RMB
Method of financial asset Amount of derecognized Gains or losses related to
Item transfer financial assets derecognition
Accounts receivable financing Discounting 3397893145.26 2569401.01
Accounts receivable financing Endorsement 262183180.12
Total 3660076325.38 2569401.01
(3) Financial assets transferred with continuing involved assets
□ Applicable R 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
Ending fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
measurement measurement measurement Total
I. Sustained -- -- -- --
248 / 275Full content of 2025 Annual Report
measurement of fair
value
1. Derivative financial
assets 36638553.50 242190249.19 278828802.69
2. Receivables
financing 83421123.96 83421123.96
Total assets
continuously measured 36638553.50 242190249.19 83421123.96 362249926.65
at fair value
3. Derivative financial
liabilities 244350092.55 10607264.44 -- 254957356.99
Total liabilities of non-
sustainable
measurement of fair 244350092.55 10607264.44 -- 254957356.99
value
II. Non-sustainable
measurement of fair -- -- --
value
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 trading financial assets/liabilities consist of futures or paper
commodity contracts held at the end of the period 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
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 parties and related-party transactions
1. The Company's parent company
Proportion of the Proportion of the
Name of parent Place of Company's
company registration Business nature Registered capital
Company's
shares held by the voting rights held
parent company by the parent company
249 / 275Full content of 2025 Annual Report
Zhejiang
Rongsheng Xiaoshan Industrial RMB 834.6640
Holding Group Zhejiang investment million 55.05% 55.05%
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 6.44% shares of the Company; Zhejiang Rongsheng Holding Group Co. Ltd. holds
55.05% 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 34.97% of the shares of the Company so he holds a total of 41.41% of the
shares of the Company.
2. Information on subsidiaries of the Company
See Note 10 for details of the Company's subsidiaries.
3. The Company's joint ventures and associated enterprises
See Note 10 for details of important joint ventures or associated enterprises of the Company.Other joint ventures and associated enterprises that form balances in related party transactions with the Company
in the current or previous period are as follows:
Name of joint venture or associated enterprise Relation with the Company
Ningbo Hengyi Trading Co. Ltd. Associated enterprise
ZPC-ENN (Zhoushan) Gas Co. Ltd. Associated enterprise
Zhejiang Dingsheng Petrochemical Engineering Co. Ltd. Associated enterprise
Ningbo Coastal Public Pipe Gallery Co. Ltd. Associated enterprise
Zhejiang Zhenshi Port Service Co. Ltd. Associated enterprise
Zhejiang Derong Chemicals Co. Ltd. Associated enterprise
Zhoushan ZPC Zhougang Tugboat Co. Ltd. Associated enterprise
Zhejiang Dongjiang Green Petrochemical Technology
Innovation Center Co. Ltd. Associated enterprise
4. Other related parties
Relationship between other related parties and the
Name of other related parties Company
Li Jumei Close family member of the actual controller
Sanyuan Holding Group Co. Ltd. Controlled by a family member close to the actual controller
Sanyuan Holding Group Hangzhou Thermal Power Co. Ltd. Controlled by a family member close to the actual controller
Zhejiang Sanyuan Textile Co. Ltd. Controlled by a family member close to the actual controller
Zhejiang Rongxiang Thermal Power Co. Ltd. The same ultimate actual controller
Zhejiang Rongtong Logistics Co. Ltd. The same ultimate actual controller
Ningbo Rongxiang Logistics Co. Ltd. The same ultimate actual controller
250 / 275Full content of 2025 Annual Report
Thermal Power Co. Ltd. of Ningbo Economic and
Technological Development Zone The same ultimate actual controller
Ningbo United Group Co. Ltd. The same ultimate actual controller
Qijiashan Hotel of Ningbo United Group Co. Ltd. The same ultimate actual controller
Ningbo United Group Import & Export Co. Ltd. The same ultimate actual controller
Suzhou Shenghui Equipment Co. Ltd. The same ultimate actual controller
Hangzhou Shengyuan Real Estate Development Co. Ltd. The same ultimate actual controller
Hangzhou Shengyuan Property Service Co. Ltd. The same ultimate actual controller
Ningbo Qingzhi Chemical Terminal Co. Ltd. The same ultimate actual controller
Ningbo Haineng Blend Oil Co. Ltd. The same ultimate actual controller
Hainan Shenggu Petrochemical Equipment Investment Co.Ltd. The same ultimate actual controller
Hong Kong Xinhengrong Co. Ltd. Subsidiary of Hainan Yisheng Petrochemical Co. Ltd.Shanghai Shenglanhui Technology Co. Ltd Affiliate 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 Yisheng Co. Ltd.Zhejiang Yixin Chemical Fiber Co. Ltd. Subsidiary of Hong Kong Yisheng Co. Ltd.Dongzhan Shipping Co. Ltd. Associated enterprise of Zhejiang Rongtong Logistics Co. Ltd.Aramco
Shareholders
Overseas Company B.V.Saudi
Parent company of Aramco Overseas Company B.V.Arabian Oil Company
Aramco Trading Singapore Pte.Ltd. Subsidiary of Saudi Arabian Oil Company
Saudi
Subsidiary of Saudi Arabian Oil Company
Basic Industries Corporation
Aramco
Subsidiary of Saudi Arabian Oil Company
Trading Company
Aramco Trading Fujairah Fze Subsidiary of Aramco Trading Company
Saudi Basic (Shanghai) Trading Co. Ltd. Subsidiary of Saudi Arabian Oil Company
Shanghai Huanqiu Engineering Co. Ltd. Company where the actual controller serves as the Director
China Township Enterprises Association Organization where the actual controller serves as a chairman
Zhuoran (Zhejiang) Integration Technology Co. Ltd. Affiliate of Zhejiang Rongsheng Holding Group Co. Ltd.
5. Related party transactions
(1) Related party transactions regarding purchase and sales of goods as well as provision and acceptance of
labor services
Table of the purchasing of goods and receiving of labor services
Unit: RMB
Contents of The amount
related party incurred in the Trading limit
Whether it Amount incurred
Related party approved exceeds the in the previous transaction current period approved limit period
251 / 275Full content of 2025 Annual Report
or not (Y/N)
Saudi Arabian Oil
Company Crude oil 92950645964.34 130000000000.00 No 97964759446.07
Zhejiang
Rongsheng Coal and other
Holding Group materials 8058993064.21 15000000000.00 No 13717475115.73
Co. Ltd.Aramco Trading
Singapore Pte.Ltd. Fuel oil gasoline 6808542739.75 130000000000.00 No 729553790.76
Ningbo Hengyi
Trading Co. Ltd. PTA 2520338630.11 4200000000.00 No 290142203.61
[Note]
Zhejiang
Dingsheng Device guarantee
Petrochemical service and maintenance 1349608964.10 1500000000.00 No 1157136315.87 Engineering Co.Ltd. service
Zhejiang Yisheng PX glacial acetic
Petrochemical Co. acid isophthalic 606944021.35 350000000.00 Yes 296501943.09
Ltd. acid
SABIC (Shanghai)
Trading Co. Ltd. Ethylene glycol 611593502.19 130000000000.00 No 716089896.37
Zhejiang
Rongtong Freight 592650981.59 800000000.00 No 683589630.60
Logistics Co. Ltd.Aramco Trading
Fujairah Fze Fuel oil 420300825.98 130000000000.00 No 3166540805.77
Zhejiang
Rongxiang Steam
Thermal Power compressed air 413745127.40 500000000.00 No 18499078.25
Co. Ltd.Zhejiang Derong Isoprene
Chemicals Co. cracking C5 and 331800484.48 400000000.00 No 386591695.92
Ltd. processing fee
Suzhou Shenghui Equipment and
Equipment Co. materials installation 331758541.20 600000000.00 No 380313029.51 Ltd. service
Shanghai
Shenglanhui Equipment and
Technology Co. materials 174437795.95 40000000.00 Yes 39139104.44
Ltd.Ningbo Rongxiang
Logistics Co. Ltd. Freight 73559215.72 100000000.00 No 17916030.26
Ningbo Qingzhi Lump sum fee for
Chemical Terminal port operation warehousing 62530087.27 100000000.00 No 62997478.57 Co. Ltd. service
Ningbo Haineng Warehousing
Blend Oil Co. Ltd. service 26350289.90 50000000.00 No 28018189.56
Shanghai Huanqiu
Engineering Co. Engineering
Ltd. design service
23458557.61 30000000.00 No 38861013.25
Zhuoran Equipment and
(Zhejiang) materials
18123893.8038637158.70
252 / 275Full content of 2025 Annual Report
Integration
Technology Co.Ltd.Zhejiang Sanyuan Work clothes and
Textile Co. Ltd. other materials 8851991.18 10000000.00 No 4634374.66
Sanyuan Holding
Group Hangzhou
Thermal Power Steam 1608839.45 30000000.00 No 12973362.42
Co. Ltd.Zhejiang
Dongjiang Green
Petrochemical Consulting and
Technology design service 107304124.24 500000000.00 No
Innovation Center
Co. Ltd.Thermal Power
Co. Ltd. of
Ningbo Economic Electricity 163633.60 163352.08
and Technological
Development Zone
Qijiashan Hotel of
Ningbo United Hotel service 78392.45 226229.16
Group Co. Ltd.Ningbo United
Group Import & Agency service 9433.96
Export Co. Ltd.Hong Kong
Xinhengrong Co. PX 29726102.82
Ltd.Hainan Yisheng
Petrochemical Co. PTA etc. 20000000.00 No 19594396.81
Ltd.Dongzhan
Shipping Co. Ltd. Freight 30000000.00 No 296097.74
Total 115493399101.83 119800375842.02
[Note] Of the purchases made with the company in this period amounting to RMB 2266648900 the net amount
has been settled.Selling commodities/offering labor
Unit: RMB
Related party Contents of related party The amount incurred in the Amount incurred in the transaction current period previous period
Zhejiang Yisheng
Petrochemical Co. Ltd. [Note PTA PX m-xylene 9079113248.89 8456472338.73
1]
Aramco Trading Singapore Gasoline diesel MTBE
Pte.Ltd. aviation kerosene 2251874300.21 225986336.88
Ningbo Hengyi Trading Co.Ltd. [Note 1] PTA PX 927249311.59 3064892973.06
Saudi Basic Industries
Corporation PTA 652160482.15 774528858.93
Zhejiang Derong Chemicals Industrial acetonitrile
Co. Ltd. styrene cracking C5 diesel 528103264.56 780656247.56
253 / 275Full content of 2025 Annual Report
Ningbo Shengmao Trading
Co. Ltd. [Note 1] PTA PX 164085147.67 112686769.41
Zhejiang Rongtong Logistics
Co. Ltd. PTA diesel 25489544.81 21014955.44
Hainan Yisheng
Petrochemical Co. Ltd. PTA PX 10244992.54 240265.49
Zhoushan ZPC Zhougang
Tugboat Co. Ltd. Vehicle diesel 9985110.53 9266952.73
Zhejiang Rongxiang Thermal 6803259.60 2622508.49
Power Co. Ltd. [Note 3] Vehicle diesel etc.Zhejiang Dingsheng
Petrochemical Engineering Vehicle diesel etc. 2489823.00 2526991.15
Co. Ltd.Hong Kong Yisheng
Petrochemical Investment PX 1849527.06
Co. Ltd.Hong Kong Xinhengrong Co.Ltd. PX 1350634.00
Ningbo Qingzhi Chemical
Terminal Co. Ltd. Warehousing service income 361515.12
Ningbo Rongxiang Logistics
Co. Ltd. Vehicle diesel 59754.86 1059756.64
Suzhou Shenghui Equipment Vehicle diesel electricity fee
Co. Ltd. [Note 2] [Note 2] 19916.26 12389.38
Shanghai Huanqiu
Engineering Co. Ltd. Vehicle diesel 4424.78
Zhejiang Yixin Chemical
Fiber Co. Ltd. PTA 331991150.43
Zhejiang Rongsheng Holding
Group Co. Ltd. [Note 3] Electricity 1022684.09 811793.58
Zhejiang Dongjiang Green
Petrochemical Technology Office supplies 683.19
Innovation Center Co. Ltd.Total 13662266941.72 13784770971.09
Note to related party transactions of goods purchase & sale and labor services rendering & receiving
[Note 1] The purchase amount of RMB 2266.6489 million from the company in this period has been accounted
for on a net basis.[Note 2] The subsidiary Rongsheng New Materials (Zhoushan) Co. Ltd. sold water amounting to RMB 447.25
to Suzhou Shenghui Equipment Co. Ltd. (accounted for on a net basis).[Note 3] In the current year the Company's cumulative electricity sales to Zhejiang Rongxiang Thermal Power
Co. Ltd. and Zhejiang Rongsheng Holding Group Co. Ltd. amounted to RMB 4034056.42 (accounted for on a
net basis); in the same period of the previous year the cumulative electricity sales to Zhejiang Rongxiang Thermal
Power Co. Ltd. and Zhejiang Rongsheng Holding Group Co. Ltd. amounted to RMB 2974125.08 (accounted for
on a net basis).
(2) Related leases
The Company acts as the Lessor:
254 / 275Full content of 2025 Annual Report
Unit: RMB
Type of leased Lease income recognized in Lease income recognized in
Name of lessee asset the current period the previous period
Hainan Yisheng Petrochemical
Co. Ltd. House lease 1401336.66
Zhejiang Rongtong Logistics
Co. Ltd. House lease 425788.99
The Company acts as the Lessee:
Unit: RMB
Rental expenses for short-term leases and leases of low-
Type of leased value assets on a simplified basis if applicable
Name of lessor asset Amount incurred in the Amount incurred in the
current period previous period
Hangzhou Shengyuan Property Service
Co. Ltd. Parking space 35230.00 56023.81
Hangzhou Shengyuan Real Estate
Development Co. Ltd. House leasing 5899984.14 5900823.31
Zhejiang Rongsheng Holding Group Co.Ltd. House leasing 550458.72 550458.72
Zhejiang Yixin Chemical Fiber Co. Ltd. House leasing 1929119.65 1031670.22
(3) Related guarantees
The Company as the guaranteed party
Unit: RMB 10000
Starting date of the Ending date of the If the guarantee has
Guarantor Guarantee amount guarantee guarantee been performed (Y/N)
Sanyuan Holding CNY 8000.00
Group Co. Ltd. 2024/1/1 2026/12/28 No
Zhejiang Rongsheng
Holding Group Co. CNY 8698758.28 2021/1/29 2036/2/28 No
Ltd.Zhejiang Rongsheng
Holding Group Co. CNY 55833.33 2023/1/13 2028/9/20 No
Ltd. [Note 1]
Zhejiang Rongsheng
Holding Group Co. CNY 32621.19 2020/4/28 2029/4/1 No
Ltd. [Note 2]
Zhejiang Rongsheng CNY 253916.42 2022/10/21 2028/12/26 No
Holding Group Co.
255 / 275Full content of 2025 Annual Report
Ltd. [Note 3]
Zhejiang Rongsheng
Holding Group Co. CNY 1870921.49 2022/11/14 2030/10/30 No
Ltd. [Note 4]
Zhejiang Rongsheng
Holding Group Co. CNY 867300.00 2024/4/22 2033/2/15 No
Ltd. [Note 5]
Zhejiang Rongsheng
Holding Group Co. CNY 211833.33 2023/1/13 2028/3/20 No
Ltd. [Note 6]
Zhejiang Rongsheng
Holding Group Co. CNY 495990.00 2024/9/14 2027/9/9 No
Ltd. the Company
Zhejiang Rongsheng
Holding Group Co. CNY 2681141.16
Ltd. the Company 2021/1/20 2032/11/15 No
[Note 7]
Zhejiang Rongsheng
Holding Group Co.Ltd. the Company Li CNY 1315724.59 2018/7/31 2030/7/30 No
Shuirong Li Jumei
[Note 8]
Zhejiang Rongsheng
Holding Group Co. CNY 156037.40 2025/7/2 2026/6/29 No
Ltd.Zhejiang Rongsheng
Holding Group Co. CNY 4641647.09 2025/1/10 2026/12/18 No
Ltd.Zhejiang Rongsheng
Holding Group Co. EUR 4415.04 2024/1/31 2027/4/30 No
Ltd.Zhejiang Rongsheng
Holding Group Co. USD 22305.07 2023/3/22 2027/3/31 No
Ltd.Zhejiang Rongsheng
Holding Group Co. USD 336.36 2023/10/25 2026/1/31 No
Ltd. [Note 4]
Zhejiang Rongsheng
Holding Group Co. EUR 19.90 2023/12/20 2026/8/26 No
Ltd. [Note 4]
Zhejiang Rongsheng
Holding Group Co. USD 73.38 2025/4/29 2026/3/18 No
Ltd. [Note 5]
Zhejiang Rongsheng
Holding Group Co. EUR 1438.40 2024/6/27 2026/11/30 No
Ltd. [Note 5]
Zhejiang Rongsheng
Holding Group Co. USD 1.29 2021/11/2 2026/1/1 No
Ltd. [Note 7]
256 / 275Full content of 2025 Annual Report
Zhejiang Rongsheng
Holding Group Co. EUR 0.05 2021/11/18 2026/1/1 No
Ltd. [Note 7]
Zhejiang Rongsheng
Holding Group Co. CNY 3400.00 2025/11/17 2026/11/17 No
Ltd. the Company
Zhejiang Rongsheng
Holding Group Co. CNY 328158.88 2025/2/14 2027/3/6 No
Ltd.Zhejiang Rongsheng
Holding Group Co. CNY 331333.85 2025/4/10 2026/4/30 No
Ltd.Notes of related guarantee
[Note 1] Zhejiang Rongsheng Holding Group Co. Ltd. provides a joint and several liability guarantee for 100%
of the guaranteed amount. The subsidiary Ningbo Zhongjin Petrochemical Co. Ltd. provides a mortgage guarantee
with its fixed assets having a book balance of RMB 2232.4416 million.[Note 2] Zhejiang Rongsheng Holding Group Co. Ltd. provides a joint and several liability guarantee for 100%
of the guaranteed amount. The subsidiary Ningbo Niluoshan New Energy Co. Ltd. provides a mortgage guarantee
with its fixed assets and intangible assets having a book balance of RMB 103.5112 million.[Note 3] Zhejiang Rongsheng Holding Group Co. Ltd. provides a joint and several liability guarantee for 100%
of the guaranteed amount. The subsidiary Zhejiang Yisheng New Materials Co. Ltd. provides a mortgage guarantee
with its fixed assets having a book balance of RMB 4379.6208 million.[Note 4] Zhejiang Rongsheng Holding Group Co. Ltd. provides a joint and several liability guarantee for 100%
of the guaranteed amount. The subsidiary Zhejiang Petroleum & Chemical Co. Ltd. provides a mortgage guarantee
with the completed assets of the new 1.40 million tons/year ethylene and downstream chemical facilities (Phase II
product structure optimization) project (including but not limited to the land use rights above-ground buildings
and project equipment formed at that time after the construction project passes the completion acceptance).[Note 5] Zhejiang Rongsheng Holding Group Co. Ltd. provides a joint and several liability guarantee for 100%
of the guaranteed amount. The subsidiary Zhejiang Petroleum & Chemical Co. Ltd. provides a mortgage guarantee
with all assets formed by the high-performance resin project (including but not limited to providing a mortgage
guarantee with the land use rights above-ground buildings and project equipment formed at that time after the
construction project passes the completion acceptance).[Note 6] Zhejiang Rongsheng Holding Group Co. Ltd. provides a joint and several liability guarantee for 100%
of the guaranteed amount. The subsidiary Zhejiang Petroleum & Chemical Co. Ltd. provides a mortgage guarantee
with its machinery and equipment having a book balance of RMB 6487.4826 million.[Note 7] Zhejiang Rongsheng Holding Group Co. Ltd. and the Company provide a joint and several liability
guarantee for 60% of the guaranteed amount. The subsidiary Zhejiang Petroleum & Chemical Co. Ltd. provides a
mortgage guarantee with the completed assets of the 40 million tons/year refining and chemical integration project
(including but not limited to the land use rights above-ground buildings and project equipment formed at that time
after the construction project passes the completion acceptance).[Note 8] Zhejiang Rongsheng Holding Group Co. Ltd. and the Company provide a joint and several liability
guarantee for 51% of the guaranteed amount. The subsidiary Zhejiang Petroleum & Chemical Co. Ltd. provides a
mortgage guarantee with the completed assets of the 40 million tons/year refining and chemical integration project
(including but not limited to the land use rights above-ground buildings and project equipment formed at that time
after the construction project passes the completion acceptance).
257 / 275Full content of 2025 Annual Report
(4) Asset transfer and debt restructuring of related parties
Unit: RMB
Related party Contents of related party The amount incurred in the Amount incurred in the transaction current period previous period
Zhejiang Rongsheng Holding Transfer of 100% equity of
Group Co. Ltd. Rongsheng Energy 508240961.00 (Zhoushan) Co. Ltd.China Township Enterprises
Association Transfer of vehicle 353982.30
Zhejiang Dongjiang Green
Petrochemical Technology Transfer of engineering 36371681.41
Innovation Center Co. Ltd. equipment
(5) Remuneration of key management personnel
Unit: RMB 10000
Item The amount incurred in the Amount incurred in the previous current period period
Remuneration of key management personnel 1346.09 1237.91
(6) Other related party transactions
1. Fund borrowing from/to related parties
(1) At the beginning of the period the Company had RMB 5548.6356 million payable to Zhejiang Rongsheng
Holding Group Co. Ltd.; in the current period the Company and its subsidiaries borrowed a cumulative amount of
RMB 5229.8850 million from Zhejiang Rongsheng Holding Group Co. Ltd. accrued fund possession cost of RMB
118.5556 million and repaid RMB 3478.5123 million of principal and interest on a cumulative basis. As of
December 31 2025 the balance payable by the Company to this company was RMB 7418.5639 million.During the current period the subsidiary Zhejiang Shengyuan Chemical Fiber Co. Ltd. borrowed a cumulative
amount of RMB 600.0006 million from Zhejiang Rongsheng Holding Group Co. Ltd. and cumulatively repaid
RMB 600.0006 million. As of December 31 2025 Zhejiang Shengyuan Chemical Fiber Co. Ltd. had fully settled
the aforementioned amounts.During the current period the subsidiary Ningbo Zhongjin Petrochemical Co. Ltd. borrowed a cumulative
amount of RMB 999.8790 million from Zhejiang Rongsheng Holding Group Co. Ltd. and cumulatively repaid
RMB 999.8790 million. As of December 31 2025 Ningbo Zhongjin Petrochemical Co. Ltd. had fully settled the
aforementioned amounts.During the current period the subsidiary Rongsheng Energy (Zhoushan) Co. Ltd. borrowed a cumulative
amount of RMB 350.00 million from Zhejiang Rongsheng Holding Group Co. Ltd. As of December 31 2025 due
to the disposal of equity in Rongsheng Energy (Zhoushan) Co. Ltd. the Company accordingly transferred out the
payable amount of RMB 350.00 million to Zhejiang Rongsheng Holding Group Co. Ltd.
(2) At the beginning of the period the amount receivable of the subsidiary Zhejiang Petroleum & Chemical
Co. Ltd. from ZPC-ENN (Zhoushan) Gas Co. Ltd. was RMB 10.80 million. During the period it accrued interest
of RMB 0.3523 million and collected interest of RMB 0.3523 million. As of December 31 2025 the amount
receivable from this company remained at RMB 10.80 million.
258 / 275Full content of 2025 Annual Report
2. During the current period the subsidiary Zhejiang ZPC Sales Co. Ltd. transferred warehouse receipts to
Zhejiang Yisheng Petrochemical Co. Ltd. realizing an income from the transfer of warehouse receipts of RMB
910619.47 the company has already settled the net amount.
3. The Company and its subsidiaries made the following payments to related parties for ongoing engineering
contracts:
Unit: RMB 10000
Related Party Current Period Same Period Last Year
Suzhou Shenghui Equipment Co. Ltd. 8841.91 11667.86
Zhejiang Dongjiang Green Petrochemical Technology Innovation Center Co. Ltd. 64787.12 42565.00
Shanghai Shenglanhui Technology Co. Ltd. 6318.26 3992.44
Zhejiang Dingsheng Petrochemical Engineering Co. Ltd. 23062.79 15722.44
Total 103010.08 73947.74
4.As of December 31 2025 the deposit balance of the Company and its subsidiaries in the related party
Zhejiang Xiaoshan Rural Commercial Bank Co. Ltd. was RMB 71089124.31 USD 3186008.86 and EUR 129.66.As of December 31 2024 the Company and its subsidiaries had deposit balances with the related party
Zhejiang Xiaoshan Rural Commercial Bank Co. Ltd. amounting to RMB 123447248.78 USD 1348812.92
and EUR 129.66.
6. Accounts receivable and payable of related parties
(1) Receivables
Unit: RMB
Ending balance Beginning balance
Project Related party
Book balance Bad-debt Bad-debt provision Book balance provision
Accounts Saudi Basic Industries
receivable Corporation 81355210.04 42515409.95 2125770.50
Zhejiang Yisheng Petrochemical Co. Ltd. 365689201.21 18284460.06 360195827.42 120665086.62
Aramco Trading Singapore Pte.Ltd. 216399824.26
76010449.613800522.48
Subtotal 663444235.51 18284460.06 478721686.98 126591379.60
Hangzhou Shengyuan
Advance payment Real Estate 3806092.50
Development Co. Ltd.Subtotal 3806092.50
Other receivables ZPC-ENN (Zhoushan) Gas Co. Ltd. 10800000.00 6600000.00 10800000.00 5400000.00
Subtotal 10800000.00 6600000.00 10800000.00 5400000.00
259 / 275Full content of 2025 Annual Report
(2) Payables
Unit: RMB
Project Related party Ending book balance Beginning book balance
Accounts payable Rongsheng Petrochemical (Singapore) Pte. Ltd. [Note] 28256256144.32 30257905558.70
Yisheng Dahua Petrochemical Co. Ltd. [Note] 2365800000.00 3437999698.00
Zhejiang Yisheng New Materials Co. Ltd. [Note] 1670000000.00 2049030000.00
The Company [Note] 1168000000.00 1286000000.00
Ningbo Zhongjin
Petrochemical Co. Ltd. 1405426000.00 1317273481.65
[Note]
Dalian Rongxincheng Trading Co. Ltd. [Note] 440414455.48 667864260.54
Zhejiang ZPC Sales Co. Ltd. [Note] 170337839.99
Ningbo Rongxincheng Trading Co. Ltd. [Note] 161050000.00 110000000.00
Zhejiang Petroleum & Chemical Co. Ltd. [Note] 34000000.00 1122747553.24
SAUDI ARABIAN OIL COMPANY 3543622089.94 4351562189.78
Zhejiang Rongsheng Holding Group Co. Ltd. 404837206.40
Zhejiang Dingsheng
Petrochemical Engineering 337238077.47 205429347.45
Co. Ltd.Zhejiang Rongtong Logistics Co. Ltd. 144673343.36 128585887.48
Ningbo Rongxiang Logistics Co. Ltd. 31532493.55 2222834.88
Ningbo Qingzhi Chemical Terminal Co. Ltd. 7309445.62 4979118.97
Zhejiang Dongjiang Green
Petrochemical Technology 5057298.41
Innovation Center Co. Ltd.Zhejiang Saintyear Textile Co. Ltd. 4249274.30 3064391.99
Zhejiang Derong Chemicals Co. Ltd. 809628.01
Ningbo Haineng Blend Oil Co. Ltd. 1329101.03 5538838.28
Shanghai Huanqiu Engineering Co. Ltd. 5160076.48 900000.00
ARAMCO TRADING FUJAIRAH FZE 803913.45
Suzhou Shenghui Equipment Co. Ltd. 132000.00 3296884.96
260 / 275Full content of 2025 Annual Report
Qijiashan Hotel of Ningbo United Group Co. Ltd. 2565.00
Thermal Power Co. Ltd. of
Ningbo Economic and Technological Development 13665.56
Zone
Sanyuan Holding Group
Hangzhou Thermal Power 974805.00
Co. Ltd.Zhejiang Rongxiang Thermal Power Co. Ltd. 17675013.16
Hong Kong Xinhengrong Co. Ltd. 29726102.82
Subtotal 40158054618.37 45002775966.90
Notes payable Ningbo Hengyi Trading Co. 50000000.00 Ltd.Zhejiang Rongxiang Heating 14770000.00 Co. Ltd.Subtotal 64770000.00
Contract liabilities and other Zhejiang Dingsheng
current liabilities Petrochemical Engineering 8122893.70 Co. Ltd.Zhejiang Rongtong Logistics Co. Ltd. 2293481.65
Ningbo Shengmao Trading Co. Ltd. 2277662.26 518282.64
Zhoushan ZPC Zhougang Tugboat Co. Ltd. 499205.90 782380.80
Hainan Yisheng Petrochemical Co. Ltd. 323158.43
Shanghai Huanqiu Engineering Co. Ltd. 10000.00
Ningbo Hengyi Trading Co. Ltd. 16297590.39
Subtotal 13526401.94 17598253.83
Other payables Zhejiang Rongsheng Holding Group Co. Ltd. 7418563934.03 5548635694.24
Zhejiang Dingsheng
Petrochemical Engineering 1346500.00 2010840.00
Co. Ltd.Zhejiang Rongtong Logistics Co. Ltd. 1005600.00 1005000.00
Suzhou Shenghui Equipment Co. Ltd. 300.00 500300.00
Dongzhan Shipping Co. Ltd. 500000.00
Zhejiang Yixin Chemical Fiber Co. Ltd. 1031670.22
Subtotal 7420916334.03 5553683504.46
[Note] It is due to the Letters of Credit (L/Cs) issued by the Company and its subsidiaries. Rongsheng Petrochemical (Singapore) Pte.Ltd. Yisheng Dahua Petrochemical Co. Ltd. Zhejiang Yisheng New Materials Co. Ltd. the Company Ningbo Zhongjin
Petrochemical Co. Ltd. Dalian Rongxincheng Trading Co. Ltd. Zhejiang ZPC Sales Co. Ltd. Ningbo Rongxincheng Trading Co.
261 / 275Full content of 2025 Annual Report
Ltd. and Zhejiang Petroleum & Chemical Co. Ltd. have discounted the L/Cs upon receipt.XV. Commitments and contingencies
1. Major commitments
Significant commitments at the balance sheet date
1. As of December 31 2025 the Company and its subsidiaries Zhejiang Shengyuan Chemical Fiber Co. Ltd.
Yisheng Dahua Petrochemical Co. Ltd. Zhejiang Petrochemical Co. Ltd. Rongsheng Petrochemical (Singapore)
Pte Ltd. Zhejiang Yongsheng Technology Co. Ltd. Ningbo Zhongjin Petrochemical Co. Ltd. Zhejiang Yisheng
New Materials Co. Ltd. Zhejiang Yongsheng Technology Co. Ltd. and Rongsheng New Materials (Zhoushan)
Co. Ltd. had unused letters of credit issued to financial institutions such as the Hangzhou Xiaoshan Branch of
Bank of Communications Co. Ltd. totaling RMB 48259940800 USD 913081000 EUR 58734300 and GBP
629000.
2. As of December 31 2025 the unexpired letters of guarantee of the Company and its subsidiaries are as
follows:
Unit：RMB 10000
Issuing bank Name of issuing company Beneficiary Guarantee amount
China Construction Bank Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Corporation Zhoushan Branch Co. Ltd. Republic of China 50000.00
Industrial and Commercial Bank Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
of China Limited Zhoushan Co. Ltd. Republic of China 33000.00
Branch
Industrial and Commercial Bank Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
of China Limited Zhoushan Co. Ltd. Republic of China 33000.00
Branch
Industrial and Commercial Bank Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
of China Limited Zhoushan Co. Ltd. Republic of China 34000.00
Branch
Shanghai Pudong Development Zhejiang Petroleum & Chemical Yitong New Materials Co. Ltd. CNY
Bank Co. Ltd. Zhoushan Branch Co. Ltd. 44814.28
Agricultural Bank of China Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Limited Xiaoshan Branch Co. Ltd. Republic of China 13670.00
Bank of China Co. Ltd. Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Zhoushan Branch Co. Ltd. Republic of China 12840.00
Agricultural Bank of China Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Limited Xiaoshan Branch Co. Ltd. Republic of China 13180.00
Ping An Bank Co. Ltd. Ningbo Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Zhenhai Sub-branch Co. Ltd. Republic of China 30000.00
Bank of China Co. Ltd. Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Zhoushan Branch Co. Ltd. Republic of China 3230.00
Bank of Communications Co. Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Ltd. Hangzhou Xiaoshan Sub- Co. Ltd. Republic of China 2890.00
branch
Bank of China Co. Ltd. Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Zhoushan Branch Co. Ltd. Republic of China 10230.00
Bank of China Co. Ltd. Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Zhoushan Branch Co. Ltd. Republic of China 13600.00
Bank of Communications Co. Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Ltd. Hangzhou Xiaoshan Sub- Co. Ltd. Republic of China 6600.00
branch
262 / 275Full content of 2025 Annual Report
Bank of Communications Co. Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Ltd. Hangzhou Xiaoshan Sub- Co. Ltd. Republic of China 6440.00
branch
Bank of China Co. Ltd. Zhejiang Petroleum & Chemical Hangzhou Customs of the People's CNY
Zhoushan Branch Co. Ltd. Republic of China 3540.00
Bank of Communications Co. Zhejiang Petroleum & Chemical Guiyan Resources (Yimen) Co. Ltd. CNY
Ltd. Hangzhou Xiaoshan Sub- Co. Ltd. 2714.60
branch
Industrial and Commercial Bank ZPC Jintang Logistics Co. Ltd. Jintang Branch of Zhoushan Natural CNY
of China Limited Zhoushan Resources and Planning Bureau 146.91
Branch
Bank of Ningbo Co. Ltd. Ximen Ningbo Zhongjin Petrochemical Zhejiang Jinhui Construction Co. Ltd. CNY 9.09
Sub-branch Co. Ltd.Bank of China Limited Dalian Yisheng Dahua Petrochemical Zhengzhou Commodity Exchange CNY
Jinpu New Area Branch Co. Ltd. 14410.00
2. Contingencies
(1) Important contingencies on balance sheet date
As of the balance sheet date the Company has no important contingencies that need to be disclosed.
(2) Explanation even if the Company has no important contingencies to be disclosed
The Company has no important contingencies to be disclosed.XVI. Post-balance sheet events
Profit distribution after the balance sheet date
According to the 2025 profit distribution proposal reviewed and approved at the 5th meeting of the 7th Board of
Directors on April 26 2026 the Company intends to distribute a cash dividend of RMB 1.00 (tax inclusive) per 10
Proposed shares to all shareholders. Calculated based on 9572292142 shares (which is the Company's current total share
distribution capital excluding the 417150112 shares cumulatively repurchased as of the disclosure date of this announcement)
of profits the total proposed cash dividend to be distributed is RMB 957229214.20 (tax inclusive) and the remaining
or undistributed profit will be carried forward to the next year.dividends The Company's shares held in the special securities account for share repurchase shall not participate in this profit
distribution. If the total share capital of the Company changes before the record date for the implementation of the
equity distribution due to the conversion of convertible bonds into shares share repurchases the repurchase and
cancellation of shares granted under equity incentive plans or the registration of the grant of reserved shares the
total distribution amount shall be adjusted based on the principle of maintaining the distribution ratio per share
unchanged.XVII. Other important issues
1. Segment information
(1) Determination basis and accounting policies for reporting segments
The Company determines reporting segments based on its internal organizational structure management
requirements and internal reporting system and is based on its business segments. The operating performance of
the petrochemical production business polyester fiber manufacturing business and trading business are assessed
263 / 275Full content of 2025 Annual Report
separately. Assets and liabilities shared by each segment are allocated among the different segments according to
their scale ratio.
(2) Financial information of the reporting segments
Unit: RMB
Oil refining Chemical Polyester fiber
Item production production manufacturing Trade business Inter-segment
business business business offset
Total
Revenue from 12379248762 17933283556 23442671374 19470275816 - 306683593945.92 21458715878 1.50
main businesses 2.31 5.15 .25 6.13
Main business 99454102813 16698542416 23185939320 19424480918 - 26934521769.84 1.24 .66 4.69 21452505778 2.08 costs 8.35
13866434647-38663312429
Total assets 438223861402.59 .91 65457171756 4.10.40
9831988416.-28964128525
Total liabilities 296216757711.82 03 16407460871 6.85.00
XVIII. Notes to main items in financial statements of the parent company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive of 1 year) 2565821.96 2600376.23
1-2 years 119.32
2-3 years 165.94
Above 3 years 29466.76
Total 2565821.96 2630128.25
(2) Classified disclosure by bad debt accrual method
Unit: RMB
Ending balance Beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Category
Amou Propor Percentag
Book Percentag Book
Amount e of value
Proporti
Amount Amount e of value nt tion provision on provision
Accounts
receivable 2565 2470
with 821.9
100.00128291.5.00%2437263012100.00%159547.6.07%580.9
provision 6
%10530.868.25287
for bad debt
264 / 275Full content of 2025 Annual Report
reserves
based on
aging
portfolio
25652470
Total 821.9 100.00 128291.% 10 5.00%
2437263012159547.
530.868.25100.00%286.07%580.967
Provision for bad debt by combination: 128291.10
Unit: RMB
Ending balance
Name
Book balance Bad-debt provision Percentage of provision
Within 1 year 2565821.96 128291.10 5.00%
Total 2565821.96 128291.10 5.00%
If the provision for bad debts of accounts receivable is accrued according to the general model of expected credit
loss:
□ Applicable R Not applicable
(3) Bad debt reserves accrual recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
The amount of change in the current period
Beginning Ending
Category balance Recovered or Provision returned Write-off Other
balance
Provision made for bad
debt reserves based on 159547.28 -31256.18 128291.10
aging portfolio
Total 159547.28 -31256.18 128291.10
(4) Accounts receivables and contract assets with top 5 ending balances by debtor
The total amount of the top 5 accounts receivable at the end of the period was RMB 2523998.30 accounting for
98.36% of the total accounts receivable at the end of the period. The corresponding provision for bad debts was
RMB 126199.92.
2. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Dividends receivable 550000000.00 550000000.00
Other receivables 2347360297.44 1828142849.26
Total 2897360297.44 2378142849.26
265 / 275Full content of 2025 Annual Report
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Project (or investee) Ending balance Beginning balance
Hong Kong Shenghui Co. Ltd. 550000000.00 550000000.00
Total 550000000.00 550000000.00
2) Significant dividends receivable aged over 1 year
Unit: RMB
Whether impairment
Project (or investee) Ending balance Aging Reason for the unrecovered amount occurs and its judgment basis
Subsidiaries operate
Hong Kong Shenghui 550000000.00 2-3 years over 3 years Pending payment normally and no risk is Co. Ltd. arrangements expected in the
recovery of funds.Total 550000000.00
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Nature of account Ending book balance Beginning book balance
Current account of related parties within
the scope of consolidation 1925920763.12 1133655809.38
Government accounts receivable 409020000.00 694020000.00
Security deposits for borrowings 10000000.00
Petty cash 2684528.02 2646204.77
Current accounts 3242800.84 34193.30
Deposits and security deposits 799.78
Total 2350868091.98 1830357007.23
2) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive of 1 year) 1276109520.10 811917103.99
1-2 years 90642139.84 642750326.32
2-3 years 608426855.12
Above 3 years 375689576.92 375689576.92
Total 2350868091.98 1830357007.23
266 / 275Full content of 2025 Annual Report
3) Classified disclosure by bad debt accrual method
Unit: RMB
Ending balance Beginning balance
Book balance Bad-debt provision Book balance Bad-debt provision
Category Percent Book Percent Book
Amou Propor age of
Amount value
Proporti age of
nt tion provisio Amount on Amount
value
provisio
n n
Provision
made for
bad debt 2350
reserves 8680 100.00 350779 0.15% 234736 183035 100.00% 221415 0.12% 182814
based on 91.98 % 4.54 0297.44 7007.23 7.97 2849.26
aging
portfolio
2350
Total 8680 100.00 350779% 4.54 0.15%
234736183035221415182814
91.980297.447007.23
100.00%7.970.12%2849.26
Provision for bad debt by combination: RMB 3507794.54
Unit: RMB
Ending balance
Name
Book balance Bad-debt provision Percentage of provision
Current account of related
parties within the scope of 1925920763.12
consolidation
Government accounts
receivable 409020000.00 1126050.41 0.28%
Security deposits for
borrowings 10000000.00
Petty cash 2684528.02 2217894.42 82.62%
Current accounts 3242800.84 163849.71 5.05%
Total 2350868091.98 3507794.54
Provision for bad debts is made according to the general model of expected credit loss:
Unit: RMB
Stage I Stage II Stage III
Expected credit loss Expected credit loss
Bad-debt provision Expected credit loss over the entire for the entire duration Total
in the next 12 months duration (without (credit impairment has
credit impairment) occurred)
The balance as of
January 1 2025 24581.05 2189576.92 2214157.97
The balance as of
January 1 2025 in the
current period
--Transferred to Stage
2-5279.625279.62
Provision in current
period 162306.55 1131330.02 1293636.57
267 / 275Full content of 2025 Annual Report
Balance as of
December 31 2025 181607.98 1136609.64 2189576.92 3507794.54
Provision for bad debts
at the end of the 0.02% 1.25% 0.22% 0.15%
period:
Changes in the carrying amount of the provision for losses that are significant in amount during the current period
□ Applicable R Not applicable
4) Other receivables in the top five of the ending balance collected by the debtor
Unit: RMB
Proportion in a
Nature of total ending Ending balance of Company name payment Ending balance Aging balance of other provision for bad
receivables debts
Current account of
Other receivables 1 related parties Within 1 year 1-2 within the scope of 890764939.99 years 37.89%
consolidation
Current account of
Other receivables 2 related parties Within 1 year 1-2 within the scope of 655013096.53 years 2-3 years 27.86%
consolidation
Other receivables 3 Government Within 1 year 1-2 receivables 409020000.00 years 17.40% 1126050.41
Current account of
Other receivables 4 related parties within the scope of 373500000.00 Above 3 years 15.89%
consolidation
Other receivables 5 Security deposits for borrowings 10000000.00 Within 1 year 0.43%
Total 2338298036.52 99.47% 1126050.41
3. Long-term equity investment
Unit: RMB
Ending balance Beginning balance
Item Provision for Provision for
Book balance impairment Book value Book balance impairment Book value
Investment in 5129310280 5129310280 43843102808 43843102808subsidiaries 8.47 8.47 .47 .47
Investment in
joint ventures 4354870887. 4354870887 4285931338. 4285931338.and associated 12 .12 65 65
enterprises
Total 5564797369 5564797369 48129034147 481290341475.59 5.59 .12 .12
(1) Investment in subsidiaries
Unit: RMB
268 / 275Full content of 2025 Annual Report
Increase and decrease in the current period
Beginning Opening Ending Ending
Provision
Investee balance balance of balance balance of (book impairmen Additional Reduced for Other (book provision for
value) t provision investment investment impairmen value) impairment
t
Zhejiang
Petroleum & 29987242 29987242
Chemical Co. 115.34 115.34
Ltd.Ningbo
Zhongjin 59902011 59902011
Petrochemical 40.04 40.04
Co. Ltd.Zhejiang
Shengyuan 20301400 20301400Chemical Fiber 00.00 00.00
Co. Ltd.Dalian Yisheng
Investment Co. 14682044 1468204457.48 57.48
Ltd.Rongsheng
New Materials 17500000 74500000 92000000
(Zhoushan) 00.00 00.00 00.00
Co. Ltd.Rongsheng
New Materials 90000000 90000000
(Taizhou) Co. 0.00 0.00
Ltd.Rongsheng
Petrochemical 62088956 62088956
(Singapore) 0.00 0.00
Pte. Ltd.Zhejiang
Yongsheng 80030653 80030653Technology 7.70 7.70
Co. Ltd.Hong Kong
Shenghui Co. 14141991 14141991
Ltd. 0.00 0.00
Rongsheng
Petrochemical
Sales Co. Ltd.
(Former 10000000
Rongsheng 0.00
10000000
0.00
International
Trading Co.Ltd.）
Rongsheng
Chemical 50000000. 50000000.(Shanghai) Co. 00 00
Ltd.Rongxiang
Chemical Fiber 3000000.0 3000000.0
Co. Ltd. 0 0
Hainan 1000000.0 1000000.0
Rongsheng 0
0
269 / 275Full content of 2025 Annual Report
International
Trade Co. Ltd.Rongsheng
Petrochemical
(Hong Kong) 699087.91 699087.91
Co. Ltd.Total 43843102 74500000 51293102808.47 00.00 808.47
(2) Investment in joint ventures and associated companies
Unit: RMB
Increase and decrease in the current period
Invest
ment
Openi gains Other Declar Endin
Begin ng or compr ed Endin g ning balanc g balanc
Invest balanc e of Additi Reduc losses ehensi Other
distrib Provis balanc e of
ee e impair onal ed recogn ve equity
ution ion for e provis
(book ment invest invest ized incom chang
of Other
value) provis ment ment under e es cash
impair (book ion for
ment value) impair
ion the adjust divide ment
equity ments nds or
metho profits
d
I. Joint ventures
II. Associated enterprise
Zhejia
ng
Yishen
g 151805728 62623 37229
1519
Petroc 1.54 0.52 5.54
05580
hemica 7.60
l Co.Ltd.Ningb
o
Hengy 77873 -68344 2622 12151i 401.2
Tradin 6 439.7 288.02
249.5
g Co. 7
Ltd.Zhejia
ng
Xiaosh
an -
Rural 2690 29311 11580 43654 2823
Comm 00065 9540. 510.6 66383
ercial 5.85 92
1856.
1150.01
Bank
Co.Ltd.Subtot 4285 22540
-436544354
al 93133 1331.
11280
7272.510.6870888.65675557.12
270 / 275Full content of 2025 Annual Report
4285 22540 -11280 43654 4354Total 93133 1331. 7272. 510.6 87088 8.65 67 55 5 7.12
The recoverable amount is determined according to the net amount of fair value minus disposal expenses
□ Applicable R Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable R Not applicable
4.Operating revenue and operating cost
Unit: RMB
The amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary business 2400311794.17 2387146218.40 2363829411.86 2333799484.08
Other businesses 236014698.65 90867316.83 80517987.35 35829527.43
Total 2636326492.82 2478013535.23 2444347399.21 2369629011.51
Breakdown of operating revenue and operating cost
1) Breakdown of revenue generated by contracts with customers by goods or service categories
Unit: RMB
Amount in the current period Amount in the previous period
Item
Revenue Cost Revenue Cost
Polyester chemical fiber film 2400311794.17 2387146218.40 2363829411.86 2333799484.08
Trade and others 234233497.26 90595870.83 78470936.15 35558081.43
Subtotal 2634545291.43 2477742089.23 2442300348.01 2369357565.51
2) Breakdown of revenue generated by contracts with customers by goods or service time
Unit: RMB
Item Amount in the current period Amount in the previous period
Revenue recognized at a certain point of time 2634545291.43 2442300348.01
Subtotal 2634545291.43 2442300348.01
3) Information related to performance obligations
Type of quality
Nature of Whether Amounts Time of assurance
goods expected to be
fulfillment of Important payment the provided by the
Item transferred refunded to performance terms company is company and
by the the customers by obligations related
company primary the company obligations
271 / 275Full content of 2025 Annual Report
responsible
party
Prepayment; Accounts
Sale At the time of receivable payment period Products
of delivery of conforming Guarantee type
goods goods is generally 30 to 90 days to national
Yes None quality assurance
after product delivery standards
4) The revenue recognized in the current period included in the opening book value of contract liabilities is
RMB 710551453.29.
5. Investment income
Unit: RMB
Item The amount incurred in the current Amount incurred in the previous period period
Income from long-term equity investment 2550000000.00
under the cost method
Long-term equity investment income 225401331.67 244101230.58
calculated by equity method
Interest income from the inter-bank loan 37405614.45 33787302.90
of related party
Financing discount loss of receivables -88514.74
Total 262806946.12 2827800018.74
XIX. Supplementary information
1. Breakdown of non-recurring gains and losses in the current period
RApplicable □ Not applicable
Unit: RMB
Item Amount Notes
Profits and losses on disposal of non- 28471452.77
current assets
Government subsidies included in the
current profits and losses (except those
closely related to the Company's normal
business operations which are in line with 92428828.18
national policies enjoyed according to
certain standards and have a continuous
impact on the Company's profits and
losses)
Except for the effective hedging business
related to the Company's normal business 75893353.74
the gains and losses of the fair value
changes arising from financial assets and
272 / 275Full content of 2025 Annual Report
financial liabilities held by non-financial
enterprises and the gains and losses
arising from the disposal of financial
assets and financial liabilities
Fund possession cost included in current
profit or loss charged to non-financial 332320.74
enterprises
Other non-operating revenues and
expenditures except for the -21423859.85
aforementioned items
Other profit/loss items falling within the -4766358.11
definition of non-recurring gain or loss
Less: Affected amount of income tax 72782393.34
Affected amount of minority 153568812.79
shareholders' equity (after tax)
Total -55415468.66 --
Situation of other profit/loss items falling within the definition of non-recurring gain or loss:
□ Applicable R 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 R Not applicable
2. Return on equity and earnings per share (EPS)
Earnings per share (EPS)
Profit within the reporting Weighted average
period return on net assets Basic earnings per share Diluted earnings per share
(RMB per share) (RMB per share)
Net profit attributable to ordinary
shareholders of the Company 1.94% 0.09 0.09
Net profit attributable to ordinary
shareholders of the Company
after deducting non-recurring 2.07% 0.09 0.09
gains and losses
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 R 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 R Not applicable
273 / 275Full content of 2025 Annual Report
(3) Explanation of the reasons for differences in accounting data under domestic and foreign accounting
standards. If the data has been audited by a foreign auditing firm and the differences have been adjusted
the name of the foreign auditing firm should be indicated.
4. Others
1. Calculation process of weighted average return on net assets
Unit: RMB
Item S/N Amount in the current period
Net profit attributable to ordinary shareholders of the Company A 848314274.77
Non-recurring gains and losses B -55415468.66
Net profit attributable to ordinary shareholders of the Company
after deducting non-recurring gains and losses C=A-B 903729743.43
Net assets at the beginning of the period attributable to ordinary
shareholders of the Company D 43859172287.65
Decrease in net assets attributable to ordinary shareholders of the
Company due to repurchase or cash dividends G1 957229214.20
Number of months from the month following the net asset
decrease to the end of the reporting period H1 7.00
Translation difference of foreign currency financial
statements G5 -87857443.85
Number of months from the month following the
change in net assets to the end of the reporting H5 6.00
period
Other changes in equity under the equity method I1 -105624368.94
Other Number of months from the month following the
change in net assets to the end of the reporting J1 6.00
period
Unused work safety expenditure I2 36747418.49
Number of months from the month following the
change in net assets to the end of the reporting J2 6.00
period
Number of months of the reporting period K 12.00
Weighted average net assets L= D+A/2+ E×F/K-G×H/K±I×J/K 43646578519.60
Weighted average return on net assets M=A/L 1.94%
Weighted average return on net assets after deducting non-
recurring gains and losses N=C/L 2.07%
2. Calculation process of basic earnings per share and diluted earnings per share
(1) Calculation process of basic earnings per share
Unit: RMB
274 / 275Full content of 2025 Annual Report
Item S/N Amount in the current period
Net profit attributable to ordinary shareholders of the Company A 848314274.77
Non-recurring gains and losses B -55415468.66
Net profit attributable to ordinary shareholders of the Company after
deducting non-recurring gains and losses C=A-B 903729743.43
Total shares at the beginning of the period D 9572292142.00
Increase in the number of shares due to capitalization of capital
reserve or stock dividend distribution E
Increase in the number of shares due to new shares issued or debt-to-
equity swap F
Number of months from the following month of increase in the
number of shares to the end of the reporting period G
Decrease in the number of shares due to repurchase H
Number of months from the following month of decrease in the
number of shares to the end of the reporting period I
Number of shares consolidated during the reporting period J
Number of months of the reporting period K
Weighted average number of outstanding ordinary shares L=D+E+F×G/K-H×I/K-J 9572292142.00
Basic earnings per share M=A/L 0.09
Basic earnings per share after deducting non-recurring gains and
losses N=C/L 0.09
(2) Calculation process of diluted earnings per share
The calculation process of diluted earnings per share is the same as that of basic earnings per share.Rongsheng Petrochemical Co. Ltd.Chairman: Li Shuirong
April 26 2026
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