[年报]恒逸石化(000703):2021年年度报告（英文版）
原标题:恒逸石化:2021年年度报告（英文版） th th In 2021, while China celebrated the 100 anniversary of the CPC and got the 14 Five-Year Plan off, Hengyi Petrochemical made steady progress in the strategy of "refinery, polyester and polyamide industries". However, we are still facing severe challenges in operation due to the Covid-19 resurgence and the complex and rapidly changing external environment. Only after polishing can a piece of jade be finer. In this extraordinary year, we, all Hengyi staff, achieved a gratifying result with joint efforts and full vigor. Hitting a new high, we recorded both revenue and total assets exceeding RMB100 billion In the year 2021, we continued to rise to various external challenges, with operating performance reaching a new all-time high. The revenue was RMB128.98 billion, up 49.23% year on year; the total assets amounted to RMB105.549 billion, up 13.88% year on year. With the revenue and total assets both exceeding RMB100 billion, the Company has achieved its business objectives and development goals, showing its strong growth momentum and vitality. Releasing capacity, we unleash the growth potential In the year 2021, our industrial chain planning which integrates upstream and downstream was further refined. The Hengyi Brunei Phase I Project continuously operated at full capacity, and many other projects were put into production, including the intelligent environmental and functional fiber project of Haining New Materials, the new-type functional fiber project of Fujian Yijin and the 3-mtpa PTA project of Yisheng New Materials. With new capacity fully released, the Company's capacity reached a new level. Accordingly, we have gained strong growth momentum and consolidated our industry leader role. With innovation, we empower our high-end intelligent development In the year 2021, following the transformation from "Made in China" to "Intelligent Manufacturing in China", the Company further implemented the strategy of innovation-driven development. The Company has made planning with foresight on long-term projects for high-end green products, integration of data and intelligence, building the first polyester factory with whole-process intelligent storage and transportation system in China. Our AI full-detection prototype first applied in the chemical fiber industry was selected as the Industrial Intelligent Pioneer Case at the Intelligent Economy Summit 2021. By leveraging its supply chain, the Company has focused on building "Hengyi Brain", an intelligent information platform, to empower the development of chemical fiber industry and create more value. Co-creating and sharing, we improve the talent incentive mechanism In the year 2021, the Company continued to promote its employee stock ownership plan to benefit those at grassroots level. We launched the special campaign of "ensuring frontline stable, solidifying foundation" among all employees, which aimed to enable more Hengyi employees to better share our development achievements. The establishment of the long-term development and sharing mechanism has effectively enhanced the sense of belonging and cohesion of employees, increased our attraction to high-level talents, and laid a solid foundation for our stable and sound long-term development. Mountains do not reject fine dust, and rivers do not refuse to fill with water. It is the hard work of every Hengyi employee and the support of leaders, investors and partners that make the Company has the energy and courage to forge ahead. On behalf of the Company, I would like to express my heartfelt thanks to you all! With entering 2022, the ever-changing international community and the COVID-19 resurgence have made the whole market under pressure. This era of challenges and opportunities also is a test for our operation and management. As a multinational business, we will explore with a more global perspective, give equal priority to exploring opportunities and preventing and controlling risks, and plan ahead, keep innovating and make steady progress while seeking opportunities in changes. Looking forward, as demanded by the high-quality development in the new era and the new pattern of industrial development, we will continue to promote the construction of major strategic projects, including the Brunei Phase II Project, the 1.2-mtpa Caprolactam-Polyamide Integration and Supporting Project and Suqian Yida’s 1.1-mtpa New-type Differentiated Environmental Fiber Project, and make further improvement in integrating the whole industry chain of "refinery, polyester and polyamide industries". We will continue to consolidate the foundation of innovation and joint laboratories co-built with top colleges and universities, we will continue to promote the application and transformation of technological achievements, and improve the contribution of scientific research and technological innovation to our main business to become a technology leader in the whole industry. We aim to build and operate a long-lasting company that ranks among the world’s top enterprises. This is our mission and also original aspiration. With no fear for the long way ahead, we will work hard and set off a new journey. We will stay true to our original value, make down-to-earth efforts, and keep moving forward to embrace a bright future on our way to the high-quality development and a century-old Hengyi. Monday, April 25, 2022 Section 1 Important Notes, Contents and Definitions The Board of Directors (BOD), Board of Supervisors (BOS), directors, supervisors and senior managers of the Company guarantee that the contents of the 2021 Annual Report (hereinafter referred to as "the Report") are true, accurate and complete, free of false records, misleading statements or major omissions, and that they shall bear relevant individual and joint and several legal liabilities. The financial statements of the Report have been audited by Zhongxinghua Certified Public Accountants LLP, and a standard unqualified audit report has been issued. Qiu Yibo, the head of the Company, Mao Ying, the person in charge of the accounting work, and Yu Zhicheng, the head of the accounting body (accountant in charge), declared that they would ensure the truthfulness, accuracy and completeness of the financial statements in this Annual Report. th th The Report has been deliberated and approved at the 17 meeting of the 11 BOD of the Company. All directors have attended the Board meeting at which this Report was considered. The profit distribution plan approved by the BOD is as follows: a cash bonus of RMB 2.00 (tax included) will be distributed to all shareholders for every 10 shares on the base of 3,666,280,014; no bonus shares will be distributed, and no accumulation fund will be converted into share capital. If the Company’s total share capital on the registration date of dividend-paying equity changes as a result of additional issuance, share repurchase or conversion of convertible bonds into additional capital stock prior to such date, the Company plans to maintain the distribution ratio unchanged and adjust the total share capital. The 2021 Profit Distribution Plan shall also be submitted to the 2021 Annual General Meeting of Shareholders of the Company for deliberation and approval. Forward-looking statements such as future plans, development strategies, industry discussions and prospects involved in this Report do not constitute the substantive commitment of the Company to investors, and investors are advised to pay attention to investment risks. For possible risks in the operation and development of the Company, please refer to 3.11.2 "Possible Risks and Countermeasures in the Future" of 3.11 "Prospects for the Future Development of the Company" of "Section 3 Management Discussion and Analysis". Contents Section 1 Important Notes, Contents and Definitions..................................................................... 5 Section 2 Company Profile and Main Financial Indicators .......................................................... 11 Section 3 Management Discussion and Analysis.......................................................................... 18 Section 4 Corporate Governance ................................................................................................ 127 Section 5 Environmental and Social Responsibility ................................................................... 172 Section 6 Important Matters........................................................................................................ 186 Section 7 Changes in Shares and Shareholders .......................................................................... 212 Section 8 Preference Shares ........................................................................................................ 224 Section 9 Bonds .......................................................................................................................... 225 Section 10 Financial Report .......................................................................................................... 231 List of Documents for Reference 1. Accounting statements signed and stamped by the legal representative, the financial principal and the head of the accounting body; 2. The original audit report stamped by the accounting firm and signed and stamped by the certified public accountant; 3. All original documents and original announcements of the Company publicly disclosed on the website designated by CSRC during current period. Definitions
2.1 Company profile
Accounting firm engaged by the Company
□ Applicable √ Not applicable 2.6 Main accounting data and financial indicators Does the Company need to retroactively adjust or restate the accounting data of previous years? √ Yes □ No Reason for retrospective adjustment or restatement Changes in accounting policies
On December 7, 2018, the Ministry of Finance issued a Notice on the Accounting Standards for Business Enterprises No. 21 - Leases (2018 Revision) (CK[2018] No. 35) (hereinafter referred to as "New Lease Standards"). It stipulates that the new standards take effect from January 1, 2019 for enterprises listed both at home and abroad, as well as enterprises listed overseas and prepare financial statements according to IFRS or ASBE, and come into force from January 1, 2021 for other enterprises abiding by ASBE. The net profits before and after deducting non-recurring gains and losses (whichever is less) of the Company in the previous three fiscal years is negative, and the audit report of the previous year shows that the Company’s going concern ability is uncertain. □ Yes √ No The lower of net profit before and after deducting non-recurring gains and losses is negative. □ Yes √ No 2.7 Differences between accounting data under the domestic and foreign accounting standards 2.7.1 Differences in the net profit and net assets in the financial statements which are presented concurrently in accordance with international accounting standards and the accounting standards of China □ Applicable √ Not applicable There are no differences in the net profit and net assets in the financial statements which are presented concurrently in accordance with international accounting standards and the accounting standards of China during the Reporting Period. 2.7.2 Differences in the net profit and net assets in the financial statements which are presented concurrently in accordance with foreign accounting standards and the accounting standards of China □ Applicable √ Not applicable There are no differences in the net profit and net assets in the financial statements which are presented concurrently in accordance with foreign accounting standards and the accounting standards of China during the Reporting Period. 2.8 Quarterly main financial indicators Currency: RMB
2.9 Non-recurring gain and loss items and amounts Currency: RMB
The Company does not have any other profit or loss items that meet the definition of non-recurring profit and loss. Cases of defining the non-recurring profit and loss items as recurring profit and loss items, which are enumerated in the Explanatory Announcement No. 1 on Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profits and Losses □ Applicable √ Not applicable There was no case of defining any non-recurring profit and loss items as recurring profit and loss items, which are enumerated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to the Public - Non-recurring Profits and Losses. Section 3 Management Discussion and Analysis 3.1 Main business of the Company and the industry in which the Company is engaged during the Reporting Period The Company shall comply with the disclosure requirements for petrochemical industry specified in Guidelines No. 3 for Self-Regulation of Listed Companies of Shenzhen Stock Exchange - Industry Information Disclosure 3.1.1 Overview Committed to developing into a leading domestic and world-class refining-petrochemical-chemical fiber industry group, Hengyi Petrochemical (stock code: 000703) has made continuous efforts to enhance its comprehensive competitiveness through resource sharing and industrial coordination. Under the guidance of the development strategy of "refinery, polyester and polyamide industries", the Company, relying on the Brunei Project, has stepped up efforts in internationalization, broke the "last kilometer" barrier of the whole industry chain from oil refining to chemical fiber, and built an internally-highly-matched columnar-balanced integrated industry chain in the upstream, midstream and downstream. By creating a unique "polyester + polyamide" double-fiber driving mode among domestic counterparts, the Company has formed a "petrochemical +" multi-level and three-dimensional industrial layout with petrochemical industry chain as the core business, supply chain service business as the growth business, and differentiated fiber products and application of industrial intelligent technology as the emerging business. 3.1.1.1 Overview of petrochemical chemical fiber business 3.1.1.1.1 One of the world’s leading groups in the integration of “refining-petrochemical-chemical fiber” industry chain During the Reporting Period, the Company's unique industrial layout of "refinery, polyester and polyamide" continued to improve. While organizing the domestic and overseas staff to join hands in scientific fight against the pandemic to avoid the Company's safe production and operation from being significantly affected by the pandemic, the Company maintained stable operation throughout the year and demonstrated strengths in expansion and quality improvement in polyester industry, potential tapping and transformation in PTA industry, and full production in refining and petrochemical industry. Besides, the Company uncovers the integrated, balanced and internationalized operation mode of industry chain. Currently, the Company has developed into one of the world's leading enterprises integrating the industry chains of "crude oil-PX-PTA-polyester" and "crude oil-benzene-CPL-polyamide". Upholding the strategic development policy of "consolidating, highlighting and enhancing the competitiveness of the main business", the Company has not only focused on the main business, but also continuously increased investment in technological innovation and industrial intelligent technologies, and enhanced the comprehensive competitive edge, thereby ranking in the forefront of the industry for many years. During the Reporting Period, the Company has continuously extended its petrochemical industry chain, enriched product categories and further improved its product structure, which effectively consolidated the core competitiveness of the main business, strengthened the profitability of products and improved the ability to resist market risks. The Company's main products include: gasoline, diesel, jet fuel and other product oil; light petrochemical oil, liquefied petroleum gas (LPG), p-xylene (PX), benzene, purified terephthalic acid (PTA), caprolactam (CPL) and other petrochemical products; polyester bottle flakes and other packaging products, as well as polyester preoriented yarn (POY), polyester drawn yarn (FDY), polyester textured yarn (DTY), polyester staple fiber, polyester (PET) flakes and other polyester products. The products are widely used for meeting the rigid needs related to national economy and people's livelihood, and meeting people's yearning for a better life.
As of the disclosure date of this report, the Company's designed crude oil production capacity was 8mtpa; the PTA production capacity of holding and shareholding companies was 19mtpa; the PIA production capacity was 300,000 t/a; the polymer production capacity of holding and shareholding companies was 10.465 million tons, among which the production capacity of polyester fiber was 7.765mtpa, that of polyester bottle flakes (including RPET bottle flakes) was 2.7mtpa, and that of caprolactam (CPL) was 400,000 t/a, ranking forefront in the industry. Table 1 Production Capacity of Main Products of the Company (10,000 t/a) Product Capacity Petrochemical products 265 Product oil 565 PTA 1,900 PIA 30 Polyester fiber products 776.5 PET bottle flakes(including RPET) 270 Caprolactam 40 Note: 1) Polyester fiber products include POY, FDY, DTY, staple fiber and flake products 2) This table lists the actual production capacity of the Company during the Reporting Period. During the Reporting Period, the Company continued to attach importance to investment in research and development of new products, actively responded to the “carbon peaking and carbon neutrality” strategy, and adhered to the guidance of "green manufacturing" and "circular economy". In the polyester sector, the Company continued to carry out product development and achievement transformation around the three major themes of environmental protection, function and bio-base. Internally, the Company optimized the sales system, actively grasped market demand, and fully tapped into and reasonably guided customer demands through the organic linkage of research and development, production and sales. Externally, the Company, through cooperation with colleges and universities, built an "industry-university-research" school-enterprise ecology and conducted effective exploration in basic materials research support and cutting-edge key technologies. During the Reporting Period, the Company adopted a multi-path, multi-echelon and multi-scenario research and development system. Through technical research, the Company quickly opened up the regenerated fine denier fiber market and was well received by customers. The antimony-free and environment-friendly "Eticont" series products were also recognized by more and more customers, and the sales volume continued to rise. The flame retardant fibers continued to maintain a strong market share among domestic flame retardant products. The market popularity of antibacterial and anti-virus products continued to rise, and antibacterial and anti-virus fibers will become a new profit growth point for differentiated products. 3.1.1.1.2 Products meeting the rigid needs related to the national economy and people's livelihood The Company's terminal sales products mainly include product oil products such as gasoline, diesel and jet fuel, as well as polyester products such as polyester bottle flakes, polyester filament and polyester staple fiber, which are widely used to meet the rigid needs related to national economy and people's livelihood. Among the products, product oil products such as gasoline, diesel and jet fuel provide energy for automobiles, ships, and aircraft and other vehicles and corresponding equipment. Polyester filament includes POY、FDY、DTY and other products, which are used in production of garment, home textile and decorative fabrics and linings, and can also be used for industrial purposes such as webbing, zippers, tents, automobile interiors and ear threads of masks. Among them, FDY products of the Company can be used as medical and other materials to meet the increasing demand of downstream customers for raw materials of medical supplies; polyester staple fiber can be widely used in spinning, non-woven and filling fields, among which non-woven fabrics can be used in health areas such as disinfectant wipes; PET bottle flakes are widely used in food packaging and medical materials production. The demand for bottle grade PET in beverage, dairy, edible oil, condiments and other livelihood industries keeps growing steadily, and the share in emerging application fields such as wine, daily chemicals, electronic products and medical products is rising rapidly. 3.1.1.2 Overview of “petrochemical +” business 3.1.1.2.1 Supply chain service business is conducive to improving product operation capability and enhancing the supporting value-added services With the continuous improvement of the integrated and balanced development of the Company’s industry chains, the Company has strengthened the supply chain service management capacity, and innovated and promoted intelligent management and operation modes. Relying on refining and chemical fiber production base, the Company developed domestic and overseas regional markets and optimized product layout; strengthened the construction of digital plants and actively explored flexible and personalized customization of production through big data means; adopted a variety of tools to improve product operation capability, explored the complementary advantages of raw material procurement and product sales, and gave full play to the strengths of industry chain integration to create product price differences. （未完）  |