[年报]恒逸石化(000703):2022年年度报告全文（英文版）
原标题:恒逸石化:2022年年度报告全文（英文版） Looking back on 2022, we may find that the external environment remained severe, the international situation was changing constantly, the geopolitical conditions in the world were very complex, and the global economy was facing significant downward pressures. Under the disturbance of multiple unfavorable factors, the business operation of the Company faced a critical test, and the petrochemical chemical fiber industry that the Company had been engaged in also experienced a huge challenge. Only after polishing can a piece of jade be finer. Facing this harsh test, all persons of Hengyi Petrochemical were full of confidence, worked together to overcome the difficulties and demonstrated high business vitality and development resilience, so that the Company can steadily enter the next stage of development. Guided by the strategy, we have significant advantages This year, we continued implementing the strategic deployment of "refinery, polyester and polyamide industries" without wavering. The Phase I of the refining-petrochemical project in Brunei was operated steadily, and won the China Construction Engineering Luban Prize. It was hailed by the People's Daily as a model for building an Asia-Pacific community with a shared future. The investment and construction of the 1.2-mtpa Caprolactam-Polyamide Integration and Supporting Project have been started in China, and the 500,000-tpa New-type Functional Fiber Project was successfully put into production; the production capacity of differentiated high-end polyester products was gradually released, and the integration advantages of the whole industrial chain were prominent, laying a solid foundation for the high-quality development of Hengyi. Based on the R&D, we are empowered by innovation In 2022, the Company continued adhering to the innovation-driven development. With our long-term and unremitting efforts and down-to-earth attitude, the Company achieved significant technological development results this year: The green and environmentally-friendly polyester product "Eticont" achieved large-scale production; the production of flame- retardant and antibacterial products steadily increased; the development of functional composite materials, such as cationic dyeable fiber, was taking shape and gradually advancing industrialization. Besides, the Company continued developing and researching cutting-edge processes and technologies in caprolactam, polyamide and other fields, and our products continued moving towards high-end and differentiation, adding brightness to the innovative development of Hengyi. Digital-intelligence integration improving the quality and efficiency This year, the Company continued focusing on the transformation of industry digitization, networking and intelligence, and the construction of the visualized "Hengyi Brain" Phase II project was being orderly promoted; besides, on the basis of building the first polyester factory with full-process intelligent storage and transportation system in China, the Company further promoted the application of the equipment management system, and thus the overall level of intelligence of the Company rose again accordingly. With the introduction and optimization of the automated and intelligent equipment, the labor costs were reduced and the overall operational efficiency was significantly improved, enhancing the sustainability of the development of the Company. The continuous share repurchases give us confidence This year, based on our current favorable business background and the expected continuous growth with the project production in the future, we continued firmly implementing our repurchase plan. Up to now, Hengyi Petrochemical has accumulated a repurchase amount of approximately RMB 2.034 billion through the third-phase repurchase plan. The continuous share repurchase plan not only injected a shot of energy into the market, but also gave us confidence in the future development of Hengyi. The cold winter is passing, and the warm spring is coming. With the gradual release of the effects of national economic stabilization policies, our confidence in the market has been significantly boosted, the downstream consumer demand is gradually recovering, and positive signals of a rebound in the petrochemical and chemical fiber industry have emerged. The climate is extremely cold, but the verdant pine trees have not withered, and the vast blue sea is even clearer. The test of the cold winter makes all Hengyi people more confident that the future is foreseeable. We will continue maintaining our composure, take the initiative, and firmly grasp the next important opportunity to face and overcome difficulties, demonstrate high business vitality and development resilience, steadily entering the next stage of development of the Company. th In 2023, we will follow the spirit of the 20 National Congress of the CPC, continue to fully leverage the advantages of upstream and downstream industry integration, and strive to build the Company into a source and a leading place for new technologies and products, further enhancing the profitability and risk resistance ability of the Company. The Company will further increase investment in R&D, adhere to the guidance of "green manufacturing" and "circular economy", and continue to focus on high-end and differentiated product development and achievement transformation of three major innovation and development of Hengyi, striving to achieve the transformation from an "Industrial Hengyi" to a "Technological Hengyi". Facing the whole country and the world, Hengyi has always been rooted in China. Following the “headquarters + scientific research + base" trinity model, we have been actively creating one platform, two centers, and six bases, and building a market pattern that "backing on the Yangtze River Delta, the Pearl River Delta, and the Bohai Bay, and facing the blue sea", striving to create high-quality development models. The year of 2023 is the tenth anniversary of the "the Belt and Road" initiative. The Company will continue to actively respond to the "the Belt and Road" initiative, steadily improve the operating efficiency of the Brunei Phase I Project, and accelerate the construction of the Brunei Phase II Project, being a firm practitioner of the "double cycle" development strategy. We will do our best every day and all the way, and we believe there will be more beautiful scenery ahead. Nowadays, the pain and haze brought about by the external environment are dissipating, and the dawn of hope is now in sight. We will continue to maintain our strategic composure, seize the industrial opportunities of new technologies and products, embrace new changes, achieve new leaps, and draw a new high-quality development blueprint for Hengyi Petrochemical with a forward-looking vision, rock-solid confidence, fearless courage, and seize every moment! Let’s strive to create new and greater value for our country, our society, our shareholders, and our employees! April 19, 2023 Section I 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 2022 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, Fang Xianshui, 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. We would ensure the truthfulness, accuracy and completeness of the financial statements in this Annual Report. The Report has been reviewed and approved at the twenty-eighth meeting of the eleventh session of the BOD of the Company. All directors have attended the Board meeting at which this Report was considered. According to the plan of the Company, no cash dividends or bonus shares will be distributed, and no public reserve funds will be converted into share capital. 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 (II) "Possible Risks and Countermeasures in the Future" of “XI. Prospects for the Future Development of the Company" under "Section III Management Discussion and Analysis". Contents Section I Important Notes, Contents and Definitions .................................................................. 5 Section II Company Profile and Main Financial Indicators........................................................ 12 Section III Management Discussion and Analysis ....................................................................... 19 Section IV Corporate Governance .............................................................................................. 124 Section V Environmental and Social Responsibilities .............................................................. 166 Section VI Important Matters ..................................................................................................... 189 Section VII Changes in Shares and Shareholders ........................................................................ 220 Section VIII Preference Shares ..................................................................................................... 233 Section IX Bonds ........................................................................................................................ 234 Section X Financial Report ....................................................................................................... 244 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 the current period. Definitions
I. Company Profile
Accounting firm engaged by the Company
□ Applicable ?Not applicable VI. Main Accounting Data and Financial Indicators Whether the Company needs 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 30, 2021, the Ministry of Finance issued Interpretation No. 15 of the Accounting Standards for Business Enterprises. According to the interpretation requirements, the content under “Accounting treatment for the sale of products or by-products produced by an enterprise before the fixed assets reach the intended usable state" was implemented from January 1, 2022, and retrospective presented in the financial statements and the implementation date of this interpretation. The Company’s net profit before and after deducting non-recurring profits and losses in the previous three fiscal years is negative, and the audit report of the latest year shows that the Company’s going concern ability is uncertain. □Yes ?No The lower of net profit before and after deducting non-recurring profits and losses is negative.
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. 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. VIII. Quarterly main financial indicators Currency unit: RMB
IX. Non-recurring profit and loss items and amounts Currency unit: 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 That Offer 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 of Companies That Offer Securities to the Public -- Non-recurring Profits and Losses. Section III Management Discussion and Analysis I. 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 (I) Overview Hengyi Petrochemical (stock code: 000703) is committed to developing into a leading domestic and world-class refining - chemical engineering - chemical fiber private multinational industrial group. We have been making continuous efforts to enhance the comprehensive competitiveness through "upstream and downstream collaboration, domestic and international linkage, and software and hardware supports". Under the guidance of the development strategy of "refinery, polyester and polyamide industries", the Company, relying on the Brunei Project as the fulcrum, has accelerated the pace of internationalization, completed the "last mile" of the whole industrial chain from oil refining to chemical fiber, achieved a columnar industrial structure integrating the upstream, midstream and downstream industrial chains, created a unique "polyester + polyamide" double-fiber driving mode among domestic counterparts, and 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. 1. Overview of petrochemical chemical fiber business (1) The world’s leading group in the integration of “refining - petrochemical - chemical fiber” industrial chain During the reporting period, the Company closely focused on the strategic development policy of "consolidating, highlighting, and enhancing the competitiveness of the main business”, the Company's unique industrial layout of "refinery, polyester and polyamide industries" was further improved, and the Hengyi Brunei Phase I Project was operated efficiently, continuously improving the business level; the Company continued filling the gap in domestic chemical products, breaking the monopoly of foreign chemical fiber technology, and improving the industrial layout of domestic substitution and self-sufficiency; the caprolactam-based synthetic ammonia project of the joint-stock company was completed and put into operation, effectively replenishing the downstream industrial chain of aromatics, reducing production costs, and enabling the Company to obtain lasting competitiveness. During the reporting period, the Company continuously extended the petrochemical industry chain, enriched product categories and further improved 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 oil, jet fuel and other product oils; light chemical oil, liquefied petroleum gas (LPG), paraxylene (PX), benzene, purified terephthalic acid (PTA), caprolactam (CPL) and other petrochemical products; polyester bottle flakes and other packaging products, as well as polyester pre-oriented 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 to meet the rigid needs related to national economy and people's livelihood, and meet people's yearning for a better life.
mtpa; the PTA production capacity of shareholding and joint-stock companies was 19 mtpa; the PIA production capacity was 300,000 tpa; the polymer production capacity of shareholding and joint-stock companies was 10.765 mtpa, among which the production capacity of polyester fiber was 8.065 mtpa, that of polyester bottle flakes (including RPET bottle flakes) was 2.7 mtpa, and that of caprolactam (CPL) was 400,000 tpa, ranking among the top of the industry. Table 1 Production Capacity of Main Products of the Company (10,000 tpa) Product Production capacity Chemical products 265 Product oil 565 PTA 1,900 PIA 30 Polyester fiber products 806.5 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 is the actual production capacity table of the Company in the reporting period. During the reporting period, the Company continued to attach importance to investment in R&D 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 polyester business, it continued to carry out product development and achievement transformation around the three major themes of green environmental protection, function and bio-based. Internally, the Company optimized its sales system, actively grasped market demand, and fully tapped and reasonably guided customer demands through the organic linkage of R&D, production and sales. Externally, the Company, through cooperation with colleges and universities, built an "industry-university-research" school-enterprise ecology and realized 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 R&D system. Through technical research, the Company quickly opened up the regenerated fine denier fiber market and was well received by customers. The 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 project of "Green Manufacturing of TiO2 Dulling Agent for Polyamide and Complete Technology for Industrial Application of Fully Dulling Polyamide" made breakthrough progress, taking the lead in achieving domestic application. In the field of differentiated products, the development of functional composite materials, such as antibacterial and cationic dyes, was taking shape, and the industrialization of these materials was gradually being promoted, with the technical （未完）  |