[年报]恒力石化(600346):恒力石化2022年年度报告（英文删节版）
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时间：2023年05月29日 17:17:56 中财网 |
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原标题:恒力石化:恒力石化2022年年度报告（英文删节版）
2022ANNUALREPORT
1
Lettertoshareholders,partnersandemployees
Dearshareholders,partnersandemployees:
The passing years never linger, yet our
original aspirations endure. As seasons flow and
anotheryeardawns,weareremindedthat'thereis
nowinterthatcannotbesurpassed,andnospring
that will not arrive.' Through arduous trials and
overcoming countless obstacles, we have braved
challengesand surmounted difficulties,once again
reunitingamidstthisradiantspringtime.
Inthepastyear,ournationandhomelandfacegreatchallengs.Geopoliticalcomplexities
persist,globaleconomyremainssluggish,andexternalcircumstanceshavebeentempestuous,
surpassinganticipatedrisksandchallenges.Guidedbythecentralleadershipunderthecoreof
ComradeXiJinping,thePartyhassteeredthecourse,leadingtheentirenationtovigorously
accomplishthedemandingtasksofreform,development,andstability,strivingtoturnthetide.
Duringthisyear,HengliPetrochemicalhasalsoweatherednumeroustestsinitsoperations.
Crude oil prices soared and fluctuated dramatically, while the end-market witnessed weak
consumerdemandandinsufficientneeds.Theindustryasawholeenduredoperationalpressures
arisingfromnarrowedpricedifferentialsandtheinabilitytoshiftcosts.Inthelatterhalfoftheyear,
the company's operational performance declined alongside industry fluctuations, resulting in
losses. Confronted with formidable challenges, we have cut through thickets and advanced
towardthelight,steadfastlygrowingamidsttremendouschangesanduncertainty,resoluteinour
forwardpursuit.2022ANNUALREPORT
2
enhancingnewproductdevelopment,andoptimizingproductstructure,resultinginimproved
quantityandquality.Intermsofindustriallayout,wehavereliedontheintegratedindustrialsystem
of"oil,coal,andchemicals"andleveragedtheaccumulatedresearchanddevelopmentin"new
materials"indownstreamsectorssuchas"fiber,membrane,andplastics"toconsolidateourcore
businessandstrengthenthefoundationsforfuturedevelopment.Intermsofcapitaloperation,we
have excavated highlights, extracted value, and comprehensively and vigorously promoted
investment and market value management through various channels and forms, yielding
noticeableresults.Intermsofsafetyandenvironmentalprotection,wehaveremainedcommitted
to green and low-carbon development, and our efforts have been recognized with multiple
honors,includingbeingawardedthenational-level"GreenFactory"and"NationalLow-Carbon
EnterpriseintheTextileIndustry".
Withintherealmoflifeandtheworld,thepathislongandperilous.Standingatanother
historicaljuncture,wefeelthehowlingwindsofacenturyofupheaval:Geopoliticalconflictsshow
no signs of abating, inflation reaches historic highs in Europe and America, and the "triple
pressure" of shrinking demand, supply shocks, and weakening expectations remains heavy.
Tearingapartandintegrating,upheavalandreconstruction,allindicatethatthisyearmayyetbean
extraordinary one. Undoubtedly, the recovery of demand cannot happen overnight, and the
economicrevivalmaybealengthyhealingprocess.
Withhopeinourheartsandstarsinoursights,despitetheimmenseuncertaintythatlies
aheadandthepotentialforunexpectedfactorstodisrupt,we,unitedasonewithourcountryand
homeland,willnavigatethroughtreacherouswatersandembarkonaneraofvastpossibilities
withtremendousresilience.Wewillcontinuetoupholdthepatienceanddeterminationtofighta
tough battle, with the resolve and conviction to achieve victory, and address the essential
questionsthatbelongtoHenglipeople.2022ANNUALREPORT
3
breakthroughtoweringcliffs.Withanunwaveringcommitmenttoouroriginalaspirationsand
unwaveringdetermination,inthenewyear,wewillcontinuetofocuson"onegoal,twostrategic
implementations, three fundamental foundations, four key industries, and six comprehensive
systems,"upholdingourcraftsmanshipspiritandstrivingforupwardadvancement.
Afterenduringhardships,themountainsandriversregaintheirradiance.Eachtrialand
tribulation,eachcallusandscarleftbehindfromcountlessstormsandtempests,isatestamentto
ourgrowthandagiftfromtime.Recognizingourinadequacies,weforgeahead,gazingatdistant
mountainswhiletakingdeterminedsteps.Wearemoreacutelyawarethatonlyby"puttingforth
effortsthatarenolessthananyoneelse's"andcourageouslyadvancingcanwepersistamidstthe
stormsandflourish.
Catchingupwithagreatera,thegrandjourneyofChinese-stylemodernizationhasbegun.
Achievinggrandvisionsandfar-reachinggoalsrequirespassingthroughobstaclestogetherwith
millionsoflike-mindedindividualsandthediligentperseveranceofcountlessunsungheroes.Each
oneofusisbothawitnessandaparticipant.
"Withaheartreachingbeyondtheskyandabodycommittedtothepresent."Thestarswill
notdisappointthosewhostriveforward.Webelievethatthejourneyweembarkonwillnotbein
vain!Thewindsandwaveswillcarryusforward,andwewillmeetagaininthevastblueexpanse,
fartherandwiderthaneverbefore!
Chairman:Content
Chapter 1 Definitions ........................................................................................................ 5
Chapter 2 Company Profile and Key Financial Indicators ................................................ 9
Chapter 3 Management Discussion and Analysis .......................................................... 13
Chapter 4 Corporate Governance .................................................................................. 45
Chapter 5 Environmental and Social Responsibility ....................................................... 64
Chapter 6 Important events ............................................................................................ 78
Chapter 7 Share Changes and Shareholders ................................................................ 85
Chapter 8 Information of Bonds ..................................................................................... 93
| Reference File Directory | Financial statements signed and sealed by the legal representative,
person in charge of accounting, and person in
charge of the accounting organization (accounting supervisor). | | | Original audit report sealed by the accounting firm and signed and sealed
by a certified public accountant. | | | Original copies of all company documents and announcements
publicly disclosed during the reporting period. |
Chapter 1 Definitions
I. Definition
In this report, the terms listed below are defined as follows, unless the context otherwise implies:
| Definition of Frequently-Used Terms | | | | Reporting Period | Refer to | From 1/1/2022 to 31/12/2022 | | Company, the Company,
or Hengli Petrochemical | Refer to | Hengli Petrochemical Co., Ltd. | | CSRC | Refer to | China Securities Regulatory Commission | | Ministry of Industry and
Information Technology | Refer to | Ministry of Industry and Information Technology of the
People’s Republic of China | | SSE | Refer to | Shanghai Stock Exchange | | 《Company Law》 | Refer to | 《Company Law of the People’s Republic of China》 | | 《Securities Law》 | Refer to | 《Securities Law of the People’s Republic of China》 | | 《Articles of
Association》 | Refer to | 《Hengli Petrochemical Co., Ltd. Articles of Association》 | | Hengli Group | Refer to | Hengli Group Co., Ltd., controlling shareholder of the
listed company | | Hailaide | Refer to | Hailaide International Investment Ltd., person acting-
inconcert with controlling shareholder of the listed
company | | Tak Shing Li | Refer to | Tak Shing Li International Holdings Ltd., person acting-
inconcert with controlling shareholder of the listed
company | | Hegao Investment | Refer to | Jiangsu Hegao Investment Co., Ltd., person acting-
inconcert with controlling shareholder of the listed
company | | Hengneng Investment | Refer to | Hengneng Investment (Dalian) Co., Ltd., person acting-
inconcert with controlling shareholder of the listed
company | | Hengfeng Investment | Refer to | Hengfeng Investment (Dalian) Co., Ltd., person acting-
inconcert with controlling shareholder of the listed
company | | Hengli Chemical Fiber | Refer to | Jiangsu Hengli Chemical Fiber Co., Ltd., subsidiary to the
listed company | | Susheng Thermal Power | Refer to | Suzhou Susheng Thermal Power Co., Ltd., subsidiary to
the Hengli Chemical Fiber, sub-subsidiary to the listed
company | | Hengke Advanced
Materials | Refer to | Jiangsu Hengke Advanced Materials Co. Ltd., subsidiary
to the Hengli Chemical Fiber, sub-subsidiary to the listed
company | | Deli Chemical Fiber | Refer to | Jiangsu Deli Chemical Fiber Co., Ltd., subsidiary to the
Hengli Chemical Fiber, sub-subsidiary to the listed
company | | Kanghui New Material | Refer to | Kanghui New Material Technology Co., Ltd., subsidiary to
the listed company | | Hengli Petrochemical
Chemical | Refer to | Hengli Petrochemical (Dalian) Chemical Co., Ltd.,
subsidiary to the listed company | | Hengli Investment | Refer to | Hengli Investment (Dalian) Co., Ltd., subsidiary to the
listed company | | Hengli Petrochemical
(Dalian) | Refer to | Hengli Petrochemical (Dalian) Co., Ltd., subsidiary to the
Hengneng Investment, sub-subsidiary to the listed
company | | Hengli Petrochemical
(Huizhou) | Refer to | Hengli Petrochemical (Huizhou) Co., Ltd., subsidiary to
the Hengneng Investment, sub-subsidiary to the listed
company | | Hengli Petrochemical
Refining | Refer to | Hengli Petrochemical (Dalian) Refining Co., Ltd.,
subsidiary to the listed company | | Crude Oil | Refer to | Crude oil is petroleum directly exploited from an oil well
without being processed, and is a dark-brown or dark-
green viscous liquid or semisolid flammable substance
that is composed of various hydrocarbons. | | Aromatic Hydrocarbon | Refer to | A hydrocarbon containing a benzene ring structure in its
molecule.Aromatic hydrocarbons, mainly including
benzene, methylbenzene, xylene, etc., are one of the
most important basic raw materials for the production of
petrochemicals. | | Ethylene | Refer to | A compound consisting of two carbon atoms and four
hydrogen atoms. It is the basic chemical raw material of
synthetic fiber, synthetic rubber, synthetic plastic-
(polyethylene and polyvinyl chloride), synthetic ethanol
(alcohol), and also used in manufacturing chloroethylene,
styrene, ethylene oxide, acetic acid, acetaldehyde,
ethanol, and explosives, etc. | | Polyethylene | Refer to | A thermoplastic resin obtained by polymerization of
Ethylene. Polyethylene is odorless, non-toxic, feels like
wax, has excellent low temperature resistance, good
chemical stability, and is resistant to most acids and
alkalis. | | POLYPROPYLENE (PP) | Refer to | A semi-crystalline synthetic resin material with strong acid
and alkali resistance, excellent electrical insulation
performance, harder and higher melting point than PE. | | Styrene | Refer to | An organic compound, usually a colorless, aromatic liquid,
used primarily in the production of plastics, resins, and
rubber. | | Butadiene | Refer to | An organic compound, a colorless gas with a special
smell, the main raw material for the production of
synthetic rubber. | | PARAXYLENE (PX) | Refer to | A kind of Aromatic Hydrocarbon, a colorless transparent
liquid, is one of the raw materials for the production of
purified terephthalic acid (PTA), which is used to produce
plastics, Polyester Fiber and films. | | PURIFIED
TEREPHTHALIC ACID
(PTA) | Refer to | It is white crystal or powder at normal temperature, non-
toxic, flammable, if mixed with air within a certain limit, it
will burn when exposed to fire. | | METHYLENE GLYCOL
(MEG OR EG) | Refer to | Colorless, odorless, sweet, viscous liquid, mainly used in
the production of Polyester Fiber, antifreeze, unsaturated
polyester resin, lubricants, plasticizers, non-ionic
surfactants and explosives. | | BDO, 1, 4-Butanediol | Refer to | Colorless oily liquid, flammable, miscible with water.
Soluble in methanol, ethanol, acetone, slightly soluble in
ether. | | Acetic Acid | Refer to | Organic compound, a colorless liquid with a pungent odor.
It is the raw material for the manufacture of rayon, film,
aspirin, etc. | | Polyester, Polyester Chip
or PET | Refer to | Polyethylene terephthalate (referred to as polyester) is a
fiber-forming high polymer prepared from PTA and MEG
as raw materials through transesterification or
esterification and polycondensation reactions. Fiber-grade | | | | polyester chips are used to make polyester staple fiber
and Polyester Filament Yarn (PFY), and film-grade chips
are used to make various film products. | | PBAT | Refer to | Polybutylene terephthalate-adipate, a petrochemical-
based biodegradable plastic, has excellent
biodegradability. It is very active in the research of
biodegradable plastics and one of the best degradable
materials in the market. | | PBS | Refer to | Polybutylene succinate, polymerized from succinic acid
and 1, 4-butanediol (BDO), has good thermal
performance and mechanical processing performance,
and is easily destroyed by various microorganisms in
nature or animals and plants. Enzyme decomposes,
metabolizes, and finally decomposes into carbon dioxide
and water, which is a typical fully biodegradable material. | | Polyester Fiber | Refer to | Synthetic fiber obtained by spinning polyester obtained by
polycondensation of organic dibasic acid and dibasic
alcohol. Industrialized mass-produced Polyester Fiber is
made of polyethylene terephthalate, and the trade name
in China is polyester. It is the largest variety of synthetic
fibers at present. | | Polybutylene
Terephthalate (PBT),
PBT | Refer to | Also known as polytetramethylene terephthalate, it is a
condensation polymer of terephthalic acid and 1, 4-
butanediol. It can be obtained by polycondensation
through transesterification or direct esterification.
Together, PBT and PET are known as thermoplastic
polyesters. | | Biaxially-Oriented
Polyethylene
Terephthalate (BOPET),
BOPET | Refer to | Biaxially-Oriented Polyethylene Terephthalate (BOPET)
has the characteristics of high strength, good rigidity,
transparency, high gloss, excellent wear resistance,
folding resistance, pinhole resistance and tear resistance,
etc.; heat shrinkage is extremely small and has good
antistatic properties. | | Denier (D) | Refer to | A fiber of 9, 000 meters in length weighs 1 gram and is
called 1 Denier (D). | | Polyester Filament Yarn
(PFY) | Refer to | Filament with a length of more than one kilometer, the
filament is wound into a ball. | | PFY for Civil Use, Textile
Yarn | Refer to | Polyester Filament Yarn (PFY) for apparel or home
textiles. | | PFY for Industrial Use,
Industrial Yarn | Refer to | It is a polyester long fiber with high strength, high modulus
and large denier used in industrial fields. | | Differential Fiber | Refer to | Through chemical modification or physical deformation,
mainly to improve the wearing performance, there are
great innovations in technology or performance, or new
fiber varieties with certain characteristics that are different
from conventional varieties. | | POY | Refer to | Polyester pre-oriented yarn, full name PRE-ORIENTED
YARN or PARTIALLY ORIENTED YARN, is an
incompletely drawn Polyester Filament Yarn (PFY)
obtained by high-speed spinning with an orientation
degree between the unoriented yarn and the drawn yarn. | | DTY | Refer to | Stretched textured yarn, also known as polyester
stretched yarn, full name DRAW TEXTURED YARN, is
made of POY as raw yarn, stretched and false twisted,
and often has a certain degree of elasticity and shrinkage. | | FDY | Refer to | Full drawn yarn, also known as polyester drawn yarn, full | | | | name FULL DRAWN YARN, is a synthetic fiber filament
further prepared by spinning and drawing process. The
fiber has been fully drawn and can be directly used for
textile processing. |
Chapter 2 Company Profile and Key Financial Indicators
I. Company information
| Company's Chinese Name | 恒力石化股份有限公司 | | Abbreviation of Chinese Name | 恒力石化 | | Company's Foreign Name | HENGLI PETROCHEMICAL CO., LTD. | | Legal representative of the Company | Fan Hongwei |
II. Contacts and contact information
| | Secretary of the Board | Securities Affairs Representative | | Name | Li Feng | Wang Shan, Duan Mengyuan | | Contact
address | Floor 31, Building B, Victoria Plaza, No.
52 Gangxing Road, Renmin Road Street,
Zhongshan District, Dalian City, Liaoning
Province | Floor 31, Building B, Victoria Plaza, No. 52
Gangxing Road, Renmin Road Street,
Zhongshan District, Dalian City, Liaoning
Province | | Telephone | 0411-39865111 | 0411-39865111 | | Fax | 0411-39901222 | 0411-39901222 | | E-mail | [email protected] | [email protected]
[email protected] |
III. Basic information
| Registered address | OSBL Project-Public Office Building, No. 298, Changsong Road,
Lingang Industrial Zone, Changxing Island, Dalian City, Liaoning
Province | | Company office address | Floor 31, Building B, Victoria Plaza, No. 52 Gangxing Road, Renmin
Road Street, Zhongshan District, Dalian City, Liaoning Province | | Postal code of the
Company's business
address | 116001 | | Company website | hengliinc.com | | E-mail | [email protected] |
IV. Information disclosure and location
| Media name and website of the Company’s
annual report disclosure | China Securities Journal, Shanghai Securities
News, Securities Times, Securities Daily | | Website of the stock exchange where the
company discloses the annual report | www.sse.com.cn | | The place where the Company's annual
report is ready for inspection | Office of the Company's board of directors |
V. Company stock profile
| Company stock profile | | | | | | Stock category | Stock exchange | Stock abbreviation | Stock code | Stock abbreviation
before change | | A shares | Shanghai Stock
Exchange | Hengli
Petrochemical | 600346 | Hengli Stock |
VI. Other relevant information
| Accounting firm
engaged by the
Company (Domestic) | Name | Zhonghui Certified Public Accountants (Special
General Partnership) | | | Office address | Room 601, Building A, Hualian Times Building, No. 8
Xinye Road, Jianggan District, Hangzhou | | | Name of
signing
accountant | Han Jian, Fang Sai |
VII. Key accounting data and financial indicators in the past three years (I) Key Accounting Data
Unit: ten thousand yuan Currency: RMB
| Key Accounting Data | 2022 | 2021 | Increase/decre
ase (%) | 2020 | | Revenue from
operations | 22, 232, 358.40 | 19, 797, 034.49 | 12.30 | 15, 237, 339.57 | | Net profit attributable
to shareholders of
listed company | 231, 830.32 | 1, 553, 107.67 | -85.07 | 1, 346, 178.57 | | Net profit attributable
to shareholders of
listed company after
deduction of non-
recurring gains and
losses | 104, 528.51 | 1, 452, 069.80 | -92.80 | 1, 287, 432.41 | | Net cash flows from
operating activities | 2, 595, 397.08 | 1, 867, 017.37 | 39.01 | 2, 414, 288.13 | | Net assets
attributable to
shareholders of listed
company | 5, 286, 254.36 | 5, 723, 138.30 | -7.63 | 4, 690, 507.69 | | Total assets | 24, 143, 047.46 | 21, 029, 622.56 | 14.80 | 19, 102, 872.66 |
(II) Key Financial Indicators
| Key Accounting Data | 2022 | 2021 | Increase/decrease
(%) | 2020 | | Basic earnings per share
(Yuan/Share) | 0.33 | 2.21 | -85.07 | 1.92 | | Diluted earnings per share
(Yuan/Share) | 0.33 | 2.21 | -85.07 | 1.92 | | Basic earnings per share after
deducting non-recurring gains
and losses (Yuan/Share) | 0.15 | 2.07 | -92.75 | 1.83 | | Weighted average return on
equity (%) | 4.30 | 30.07 | Reduced by 25.77
percentage points | 32.55 | | Weighted average return on
equity after deducting non-
recurring gains and losses (%) | 1.94 | 28.11 | Reduced by 26.17
percentage points | 31.13 |
Note of the key accounting data and financial indicators of the company in the prior three years at the end of the reporting period
During the Reporting Period, the prices of crude oil and other major raw materials rose rapidly and oscillated at high levels and in a wide range. The prices of products near crude oil also rose sharply due to the impact of crude oil prices. At the same time, the traditional demand for the company's main products such as chemicals, functional films, civilian yarns, and industrial yarns related to terminal consumption and infrastructure real estate is at a low market level. The weak recovery of market demand in the industry, the delayed transmission of upstream and downstream product prices, and the company's double operating squeeze of historically high operating costs and low industry demand are the main reasons for the company's revenue from operations growth but profit decline. Secondly, the company implemented a refinery overhaul in the second half of 2022, which affected the overall load rate and processing cost level of the refining and chemical integration unit, and in accordance with the requirements of accounting standards, the inventory loss caused by the periodic decline in the international crude oil price has been accounted for, which has further affected the company's annual profitability.
VIII. Main financial data by quarter in 2022
Unit: ten thousand yuan Currency: RMB
| | First quarter
(January to
March) | Second
Quarter (April-
June) | Third quarter
(July-
September) | Fourth quarter
(October-
December) | | Revenue from operations | 5, 339, 665.19 | 6, 575, 862.87 | 5, 120, 188.76 | 5, 196, 641.58 | | Net profit attributable to
shareholders of listed
company | 422, 268.92 | 380, 346.92 | -193, 946.96 | -376, 838.56 | | Net profit attributable to
shareholders of listed
company after deducting
non-recurring gains and
losses | 411, 359.48 | 330, 324.85 | -262, 602.68 | -374, 553.14 | | Net cash flows from
operating activities | 1, 061, 775.26 | 601, 761.03 | 583, 868.05 | 347, 992.74 |
IX. Non-recurring gains and losses items and amount
Unit: yuan Currency: RMB
| Item of non-recurring gains and losses | 2022 | 2021 | 2020 | | Gain or loss on disposal of non-current assets | -8, 794,
093.17 | 1, 788,
290.01 | -2, 353,
388.34 | | Government subsidies included in the current
profit and loss, except for government subsidies
that are closely related to the company's normal
business operations, comply with national policies
and regulations, and are continuously enjoyed in
accordance with certain standards or quantities | 1, 594, 250,
334.30 | 760, 570,
495.82 | 937, 331,
851.91 | | Gain on investment costs in acquisition of
subsidiaries, associates and joint venture less
than the fair value of identifiable net assets of the
investees | 79, 415,
493.16 | | | | Except for the effective hedging business related
to the Company's normal business operations,
income from the holding of trading financial
assets, Derivative financial assets, Trading
financial liabilities, and derivative financial | -46, 001,
895.50 | 375, 366,
888.97 | -158, 168,
853.40 | | liabilities generates changes in fair value gains
and losses, and the disposal of Trading financial
assets, Derivative financial assets, Trading
Investment income from financial liabilities,
derivative financial liabilities and other debt
investments | | | | | Other non-operating income/(expenses), net | 10, 695,
487.35 | -5, 096,
728.57 | -11, 127,
746.48 | | Other gain or loss items met the definition of non-
recurring item | 3, 692, 791.90 | 45, 080,
477.29 | 1, 561,
440.57 | | Less: Impact on income tax | 360, 240,
063.26 | 183, 394,
674.73 | 200, 533,
876.52 | | Impact on minority interests (after tax) | - | -16, 064,
003.29 | -20, 752,
079.27 | | Total | 1, 273, 018,
054.78 | 1, 010, 378,
752.08 | 587, 461,
507.01 |
X. Items measured at fair value
Unit: ten thousand yuan Currency: RMB
| Item | Beginning
balance | Closing
balance | Changes in the
period | Impact on profit
for the current
period | | Derivative financial
assets | 69, 643.31 | 49, 043.06 | -20, 600.25 | 45, 675.63 | | Derivative financial
liabilities | 29, 681.70 | 34, 602.07 | 4, 920.37 | -50, 022.39 | | Wealth management
products and structured
deposits | 2, 000.00 | 6, 500.00 | 4, 500.00 | 243.05 | | Receivable financing | 341, 995.77 | 228, 727.12 | -113, 268.65 | - | | Fund trust and asset
management products | 9, 793.85 | 4, 698.39 | -5, 095.46 | -150.78 | | Treasury bond reverse
repurchase | 16, 499.00 | 1, 734.90 | -14, 764.10 | 59.41 | | Total | 469, 613.63 | 325, 305.54 | -144, 308.09 | -4, 195.08 |
Chapter 3 Management Discussion and Analysis
I. Business discussion and analysis
In 2022, under the impact of complex geopolitical conflicts, deep adjustments in global supply chains, and frequent major climate disasters, prices of commodities such as energy, industrial metals, and food continued to rise, leading to a global surge in inflation. Weaker global economic fundamentals further intensified financial market volatility, prompting central banks in developed economies to swiftly and significantly tighten monetary policies, resulting in a phase of capital outflows. The central banks of some emerging markets and developing economies took a more aggressive stance in raising interest rates, greatly weighing down their economic growth. The global economic growth rate significantly declined in 2022, and the divergence in the recovery became more pronounced. As geopolitical influences deepen, the subsequent effects of rapid interest rate hikes by major central banks, and inflationary pressures, the world economy may face even greater challenges in its recovery in 2023. The International Monetary Fund predicts a global economic growth rate of only 2.9% in 2023.
From a domestic perspective, "China's economy maintains strong resilience, has great potential, and remains vibrant, with the long-term positive fundamentals unchanged." Faced with a complex and challenging situation, China adheres to the principle of seeking progress while maintaining stability, efficiently coordinates economic and social development, and has achieved positive results, stabilizing the overall macroeconomic situation. In 2022, China's gross domestic product (GDP) reached 121.02 trillion yuan, an increase of 3.0% compared to the previous year. It outpaced the growth rates of other major economies in the world, maintaining a continuous expansion of the overall economic size and solidifying its development foundation. However, despite this, the international situation remains complex and challenging, and the Chinese economy still faces significant "contractions in demand, supply shocks, and weakened expectations, " with a fragile foundation for economic recovery. In 2023, the Central Economic Work Conference made it clear that it will adhere to the principle of seeking progress while maintaining stability, vigorously boost market confidence, emphasize stable growth, employment, and prices, promote overall improvement in economic performance, and strive for qualitative and quantitative improvements. "Placing the restoration and expansion of consumption in a prioritized position, " adopting multiple measures to promote stable consumption growth, enhance residents' consumption capacity, improve the consumption environment, and cultivate new drivers of consumption growth. "Persisting in making the focus of economic development on the real economy and promoting new industrialization." Cultivating and expanding emerging industries, continuously focusing on key areas such as 5G, artificial intelligence, biomanufacturing, industrial internet, intelligent connected vehicles, green and low-carbon sectors, and constantly enriching and expanding new application scenarios. In our industry, in 2022, affected by the slowdown in macroeconomic growth, rising energy prices, weak terminal consumption, and a continued decline in the real estate sector, the industry as a whole faced the dual pressures of high costs and insufficient demand, resulting in a general decline in profitability. From the cost side, the high prices of major energy sources such as crude oil and natural gas have increased production costs for enterprises. International crude oil prices experienced fluctuations after an initial increase. According to monitoring data from the China Petroleum and Chemical Industry Federation, in 2022, the average spot price of Brent crude oil was $101.2 per barrel, a year-on-year increase of 43.0%, and the average spot price of WTI crude oil was $94.5 per barrel, a year-on-year increase of 39.1%. From the demand side, insufficient terminal consumer demand and ineffective price transmission between upstream and downstream products have led to lower product price increases compared to upstream raw materials, further squeezing enterprise profit margins. In the aromatics-PTA-polyester fiber industry chain, downstream textile and apparel are important terminal consumer markets. In 2022, due to factors such as slowing growth in household income and slow recovery of consumption scenarios, the domestic consumer market faced pressure, and domestic demand for textile and apparel products was insufficient. Although export volumes reached new highs, export growth rates declined month by month in the second half of the year. According to data from the National Bureau of Statistics, the retail sales of apparel, shoes, hats, and textiles above the quota nationwide decreased by 6.5% compared to the previous year, and the growth rate has remained negative since March. Insufficient downstream demand for textile and apparel products led to a general decline in the operating rates of major industries in the chemical fiber downstream, compared to the same period in 2021. In the olefin chemical industry chain, real estate and infrastructure, as important terminal consumer markets, bear enormous consumption volumes. Due to multiple factors, the deep adjustment trend in the real estate market continued in 2022. Data from the National Bureau of Statistics shows that nationwide real estate development investment decreased by 10.0% compared to the previous year.
Against the backdrop of high and volatile crude oil and natural gas prices, prices of products closer to crude oil have also risen significantly, influenced by crude oil prices. On the other hand, the prices of chemical products closer to the consumer end depend more on their own supply and demand dynamics. According to data from the National Bureau of Statistics, the profits of the upstream oil and gas sector increased by 1.15 times year-on-year, while the profits of the downstream refining and chemical sectors experienced negative growth. In the face of a turbulent external environment, the integrated operation of high value-added and multi-variety industrial chains and the supply composition of products highlight the industry's prominent risk resistance and profit capturing capabilities in the face of high oil price volatility and market fluctuations.
Year 2023 is the starting year for comprehensively implementing the spirit of the 20th National Congress of the Communist Party of China and a crucial year for carrying forward the goals set in the 14th Five-Year Plan. "High-quality development is the primary task for building a socialist modern country." The new generation of information technology and new materials serve as the two fundamental technologies of the manufacturing industry, with new materials being the cornerstone of upgrading traditional industries and developing strategic emerging industries. The chemical new materials industry is an important basic material for strategic fields such as new energy, high-end equipment, green environmental protection, and biotechnology. In recent years, driven by the implementation of the domestic "dual carbon" strategy, the green transformation and upgrading of the national industry, and changes in consumption patterns, the demand for upstream chemical new materials has continued to grow. This has prompted industry enterprises to actively transition from "energy + chemicals" to "platformization + new materials" and from "scale economy dominance" to "green and circular-driven" business models. Leading industry players, such as Hengli Group, have implemented fully integrated development of the entire industry chain, relying on a rich portfolio of basic chemical raw materials from integrated refining and petrochemical projects. They have extended their presence into downstream new materials fields such as high-end polyolefins, lithium battery materials, engineering plastics, and petroleum-based degradable plastics. By increasing value-added and internally consuming intermediate products, these companies effectively buffer the intense homogenized competition and structural imbalances in high-end scarcity in the upstream sector, aiming to achieve secondary growth.
In recent years, the company has actively adapted to new situations, new developments, and new changes, closely focusing on the innovation chain based on national industrial strategic transformation deployments, and deploying the industrial chain based on the
innovation chain. The company has focused on "supply chain enhancement and research
and development innovation." Building upon the advantageous integration of "oil, coal, and
chemicals" in the deep integration of the "large-scale chemical platform, " and relying on fine
chemical park projects, the company has accelerated the development of a high-end fine
chemical industry cluster. This aims to further expand the industry's support and
development foundation for high-end chemical raw materials, solidify the role and
operational efficiency of the upstream "large-scale chemical" platform. Targeting new
directions and markets in downstream polyester and polyesters, as well as fine chemicals
and specialty new materials in the olefin downstream sector, the company aims to
consolidate its traditional market advantages, benchmark breakthroughs in key new
materials areas, and focus on the development of PBS/PBAT degradable materials,
functional polyester materials, high-performance resin materials, high-end fiber materials,
and new energy materials. The company strategically positions itself in high-growth tracks
with high technological barriers and high added value, actively constructing an ecological
circle for the fine chemical and new materials industry chain in the "Dalian Changxing Island,
" and striving to become a leading enterprise in the entire value chain of research,
development, and manufacturing of platform-based chemical new materials. During the reporting period, the listed company faced the dual operational pressure of historically high operating costs and low industry demand in a challenging economic environment and a complex and volatile market situation. As a result, the company experienced a significant decline in profitability. The company achieved operating income of 222.324 billion yuan, a year-on-year increase of 12.30%, and a net profit attributable to shareholders of the listed company of 2.318 billion yuan, a decrease of 85.07% compared to the same period last year. The decline in profit was mainly due to the rapid and volatile increase in prices of major raw materials such as crude oil, coupled with weak recovery in industry market demand. The company faced the dual operational squeeze of historically high operating costs and low industry demand. The company's main products, such as chemical products, functional films, civilian silk, industrial silk, and others related to traditional demand in end-consumption and infrastructure construction, were at a low level in the market, putting pressure on the company's profitability. In the second half of 2022, the company implemented a major overhaul of its refinery, which affected the overall load rate and processing cost level of its integrated refining and petrochemical units. The company also made provisions in accordance with accounting standards for inventory losses caused by the temporary downward trend in international crude oil prices, further impacting the company's annual profitability.
Despite the extremely challenging external environment in 2022, under the correct leadership of the Board of Directors, the company's management actively sought certainty amid uncertainty, maintained composure, and sought steady progress. Through overall coordination and actively eliminating environmental factors, the company efficiently and rapidly advanced key project construction, continuously expanded the industrial chain, improved scarce production capacity, and strengthened the development of new supports. The company solidified the foundation of safety and environmental protection, actively promoted green and low-carbon transformation, and achieved efficient operations with high standards, green practices, and environmental protection. The company also strengthened its risk control, refined management, and flexible operational capabilities, controlled costs while increasing efficiency, and maximized the stability and efficiency of production and operations. （未完）
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