Stock code: 002493 Stock abbreviation: Rongsheng Petrochemica Announcement No：2025-014
Summary of 2024 Annual Report of Rongsheng Petrochemical
Co., Ltd.
I. Important TipsThis summary is extracted from the full annual report. To fully understand the Company’s operating results,financial status and future development plan, investors should read the full annual report carefully disclosed on themedia designated by China Securities Regulatory Commission (CSRC).All directors have attended the Board meeting to consider this annual report.Notes of non-standard audit opinion
□ Applicable ? Not applicable
The plan for the profit distribution or the plan for converting reserved funds into share capital during the reportingperiod deliberated by the Board of Directors?Applicable □ Not applicableConvert reserved funds into share capital or not
□ Applicable ? Not applicable
The plan for the profit distribution deliberated and approved by the board of directors is as follows: taking9,572,292,142 shares as the radix, the Company will send cash dividends of RMB 1 (tax included) and 0 bonusshare (tax included) to all shareholders for every 10 shares, and instead of converting capital reserve into sharecapital.The plan for the distribution of preferred stock profits during the reporting period adopted by the board of directorsthrough resolution
□ Applicable ? Not applicable
II. Basic Information of the Company
1. Company Profile
Stock abbreviationRongsheng PetrochemicalStock code002493Listed on Shenzhen Stock ExchangeAbbreviation before change (ifany)
NoneContact informationSecretary of the Board of Directors Representative of securities affairsName Quan Weiying Hu YangyangAddress
Lanjue International Office Building, No. 358
Jincheng Road, Xiaoshan District, Hangzhou
City, Zhejiang Province
Lanjue International Office Building,No. 358 Jincheng Road, XiaoshanDistrict, Hangzhou City, ZhejiangProvince
Fax 0571-82527208 extension 8150 0571-82527208 extension 8150Tel 0571-82520189 0571-82520189E-mailqwy@rong-sheng.com yangyang@rong-sheng.com
2. Main Business or Product Introduction during the Reporting Period
(1) Industry of the Company during the Reporting Period
Looking back at 2024, the global economy experienced slow growth with a gradually declining inflation rate.While major economies maintained accommodative monetary policies, their upward momentum remainedsomewhat insufficient. Amid complex and challenging external conditions, China’s economy forged ahead againstheadwinds, achieving stable progress with continuously reinforced positive trends. Its strides along the path of high-quality development grew steadier, providing strong support and creating more opportunities for global economicrecovery and development.(I) Global economyDuring the reporting period, the world economy continued its slow recovery amidst multiple challenges,advancing along a low-to-moderate growth trajectory with uneven progress. Regional divergence in economicgrowth became more pronounced, with emerging economies remaining the primary drivers of global economicexpansion. According to World Bank and International Monetary Fund (hereinafter referred to as the “IMF”)estimates, global GDP growth reached 3.2% in 2024, up from 2.6% in 2023. The rising inflationary trend waspartially contained, while international trade showed activity amid fluctuations, and the restructuring of globalindustrial chains accelerated, with major economies maintaining loose fiscal and monetary policies. IMF dataindicates that the global commodity price index for 2024 stood at 165.2, down by 0.3% from 2023, signaling anoverall moderation in commodity prices.
Source: Wind
(II) Domestic economy
This year, amid complex economic conditions, ’China’s economy maintained steady progress. The GrossDomestic Product (GDP) reached RMB 134.91 trillion, marking a 5% year-on-year growth, elevating the economicscale to new heights while maintaining leading growth momentum among major economies. The quarterly GDPgrowth rates were 5.3%, 4.7%, 4.6%, and 5.4%, respectively, demonstrating a pattern of “strong start, moderate
79.11
81.80
84.96
88.97
83.05
82.92
84.05
79.02
73.06
75.27
73.51
73.23
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
USD/Barrel
Brent crude oil price in 2024
mid-year, and upward end”, reflecting overall stable and progressive economic performance. The value-addedoutput of industrial enterprises above designated size grew by 5.8% year-on-year, with total profits reaching RMB
7.4 trillion. Following the timely introduction of incremental policies, industrial production sustained recovery and
profitability gradually rebounded, confirming that the fundamental trend and supporting conditions for long-termeconomic growth remain unchanged.
Source: National Bureau of Statistics
(III) Petrochemical industryThe petrochemical industry faced both opportunities and challenges. Evolving global dynamics continued toimpact China’s crude oil imports and product pricing systems through persistent supply chain uncertainties.However, China benefited from comprehensive supporting advantages across its complete chemical industrial chain,with production and consumption capacities for multiple chemical products ranking first globally. According toEuropean Chemical Industry Council (CEFIC) data, China accounted for 43% of global chemical sales in 2023. Inrecent years, China’s petrochemical enterprises have achieved remarkable technological and innovativeadvancements. Leveraging robust domestic demand for chemical products and actively responding to the “Belt andRoad Initiative”, they continued expanding into emerging chemical markets. Under the guidance of the “dual-circulation” development paradigm, transitioning from “product exports” to “capacity globalization” is emergingas a critical strategic pathway for the global layout of petrochemical enterprises.
According to statistics from the China Petroleum and Chemical Industry Federation, China’s petrochemicalindustry achieved an operating revenue of RMB 16.28 trillion in 2024, with a year-on-year increase of 2.1%; and atotal profit of RMB 789.71 billion, with an year-on-year decrease of 8.8%, indicating the industry remains in anadjustment cycle; The industry’s total import-export volume stood at USD 948.81 billion, with a year-on-yeardecrease of 2.4%, showing overall stable trade performance. Breaking down by sector, the oil & gas sector benefitedfrom reserve expansion and production increase policies, generating RMB 1.49 trillion in revenue (+1.5% YoY),and RMB 336.08 billion in profits (+12.4% YoY). The refining sector showed recovery due to low-base effects,with domestic refined oil product output (gasoline, kerosene, and diesel combined) reaching 419 million tons (+0.3%YoY). The chemical sector reported RMB 9.76 trillion in revenue (+4.6% YoY), but profits fell to RMB 454.44billion (-6.4% YoY) due to downstream property market weakness.In 2024, multiple government bodies including the State Council, the National Development and Reform
1,034,868
1,173,823
1,234,029
1,294,272
1,349,084
2.3
8.6
3.1
5.4
5.0
400,000800,0001,200,0001,600,000
20202021202220232024
Unit: %Unit: 100 million
2020-2024 Gross Domestic Product (GDP)
Gross Domestic Product (GDP)Growth Rate (Right Axis)
Commission, and the Ministry of Industry and Information Technology introduced various regulatory policies tosupport and standardize the petrochemical industry. The “large-scale equipment renewals and the trade-in of oldconsumer goods ” policies boosted demand for chemical materials, while environmental policies continued guidinggreen transformation. Industrial policies like the Implementation Plan for Innovative Development of Fine ChemicalIndustry (2024-2027) and the Work Plan for Digital Transformation of Raw Material Industry (2024-2026)promoted the reshaping of market structures, and guided the direction for the refined and intelligent developmentof petrochemical enterprises.S/N Policy Issuing authority Time
Work Plan for Digital Transformation of Raw Material Industry
(2024-2026)
Ministry of Industry andInformation Technology(MIIT) and Other EightMinistries andCommissions
January 16, 2024
Implementation Opinions on Promoting the Innovative
Development of Future Industries
MIIT and Other SixMinistries andCommissions
January 29, 2024
Action Plan for Promoting Large-Scale Equipment Renewal and
Consumer Goods Trade-in
State Council March 13, 2024
2024-2025 Energy Conservation and Carbon Reduction Action
Plan
State Council May 29, 2024
Notice on Improving New Energy Integration to Ensure High-
Quality Development of New Energy
National EnergyAdministration
June 4, 2024
Work Plan for Phasing Out and Upgrading Outdated Chemical
Plants
Ministry of EmergencyManagement and threeother departments
June 14, 2024
Implementation Plan for Innovative Development of Fine
Chemical Industry (2024-2027)
Ministry of Industry and
Information Technology
(MIIT) and eight other
departments
July 12, 2024
Several Measures to Strengthen Support for Large-Scale
Equipment Renewal and Consumer Goods Trade-in
National Development andReform Commission
(NDRC) and Ministry of
Finance
July 24, 2024
Work Plan for Accelerating the Establishment of a Dual Control
System for Carbon Emission
General Office of the State
Council
July 30, 2024
Opinions on Accelerating the All-round Green Transformation of
Economic and Social Development
Central Committee of theCommunist Party of Chinaand the State Council
August 11, 2024
Guiding Opinions on Vigorously Taking the Renewable Energy
Substitution Action
NDRC and Other Five
Ministries andCommissions
October 18, 202412 Energy Law of the People’s Republic of China
14th National People’sCongress Standing
Committee
November 8, 2024
The evolution of industry cycles will continue testing corporate strategic resilience, while technologicalupgrading and capacity optimization remain key to breakthrough. China’s petrochemical industry, with a soliddevelopment foundation, is an important pillar industry of the national economy. Leading integrated refining-chemical enterprises like Rongsheng Petrochemical actively advance “oil-to-chemicals” transformation throughtheir integrated advantages, tapping cost-reduction and efficiency-enhancement potential while rapidly respondingto market demands to continuously improve profitability. Currently, three dominant trends are shaping theindustry’s development: high-end, digital intelligence, and green and low-carbon. Domestic petrochemicalcompanies are vigorously developing innovative fine chemicals with growing R&D investment in high-endchemical products. With emerging technologies proliferating, the digital transformation in China’s petrochemical
industry is deepening, leveraging IoT, big data and AI to enhance digital energy efficiency and new material R&D,thereby strengthening anti-cyclical capabilities. As the “carbon peaking and carbon neutrality” agenda accelerates,green and low-carbon development has become an imperative for industry transformation and upgrading.Petrochemical enterprises must simultaneously improve production energy efficiency and increase R&D investmentin clean energy technologies to meet future market requirements.
(IV) Industry position and competitive advantages of the CompanyAs one of the world’s leading chemical material producers, Rongsheng Petrochemical is a major manufacturerof polyester, new energy materials, engineering plastics, and high-value-added polyolefins in China and Asia. Therefining and chemical integration project of ZPC, which was led by the Company, boasts an annual processingcapacity of 40 million tons of crude oil, 8.8 million tons of paraxylene (PX), and 4.2 million tons of ethylene,achieving globally leading integration rates. In July 2024, US Chemical & Engineering News (C&EN) rankedRongsheng Petrochemical 14th in its “Global Top 50 Chemical Companies 2024”, marking the Company’s fourthconsecutive year on the list. The same year, Rongsheng Petrochemical was ranked 8th in ICIS’ “World Top 100Chemical Companies”, 6th in US Chemical Week’s “Billion-Dollar Club of Global Chemical Companies”, and 6thin Brand Finance’s “World’s Most Valuable Chemical Brands 2024”. In November 2024, the globally authoritativeindex provider MSCI (Morgan Stanley Capital International) announced its latest ESG ratings, with RongshengPetrochemical’s MSCI ESG rating upgraded to BBB, ranking among the global leaders in the Diversified Chemicalssector, demonstrating management performance at the forefront of the global petrochemical industry in terms ofcarbon emission reduction, water resource management, and corporate governance.In recent years, the Company has actively responded to national policy directives through technologicalinnovation, green transformation, and strategic planning to drive transformation and upgrading. For verticalextension, it has continued to strengthen the resource integration and scale effects of its refining and chemicalintegration model, and fully leveraged its advantages of “cost reduction and efficiency improvement” and potentialof “oil-to-chemical conversion” to enhance operational performance. For horizontal expansion, the Company hasactively laid out differentiated, high-end, and green product systems, with its product portfolio covering new energymaterials, polyester, synthetic resins, and other sectors, significantly boosting its comprehensive competitiveness inthe global market. Through the projects such as ZPC’s refining and chemical integration project and Jintang newmaterials, it is aggressively developing high-value downstream sectors including new energy materials and premiumresins; By continuously extending and complementing its industrial chain, it achieves comprehensive coverage frombasic chemical raw materials to advanced new materials, establishing a production system with high-qualitydevelopment. In terms of global cooperation, the strategic partnership between Rongsheng Petrochemical and SaudiAramco has further solidified its industry position. Since Aramco’s strategic investment in 2023, both parties havedeepened collaboration in crude oil procurement, raw material supply, technological exchange, and overseas marketexpansion. In 2024, the Company enhanced equity cooperation with Aramco through joint development of theZhongjin Petrochemical and SASREF expansion projects, substantially strengthening its global layout.
(2) Analysis of Main Business
Rongsheng Petrochemical is one of the leading private petrochemical enterprises in China. It is mainly engagedin the research, development, production and sales of all kinds of oil products, chemicals and polyester products. Ithas established seven production bases in Bohai Economic Rim, Yangtze River Delta Economic Circle and HainanBelt 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 suchas PX and PTA in the world.
(I) Main products
The Company’s products are rich in variety and complete in specifications, covering many fields such as new
energy, new materials, organic chemicals, synthetic fibers, synthetic resins, synthetic rubber, and oil products,basically achieving “from a drop of oil to everything in the world”, and constantly upgrading and improving theindustrial chain of new materials on the basis of the existing super-large integrated refining base worldwide andcomplete 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 the plan.(II) Operation measures
China’s economy demonstrated remarkable resilience and innovative vitality amid pressures and difficulties,consolidating stable growth while making solid progress. The petrochemical industry maintained fundamentalstability with breakthrough advancements, where technological innovation and low-carbon transformation emergedas core drivers for further industrial development. During the reporting period, under the leadership of the Board ofDirectors, the Company firmly seized the opportunity, stabilized the “core business foundation” of existingindustries, explored high-end materials as new growth frontiers, focused on promoting the “three-oriented”transformation of internationalization, greening and digital-intelligence, and made solid progress in high-qualitydevelopment.
1. Advance industrial layout through vertical and horizontal planning
In 2024, we steadfastly implemented our “Vertical-Horizontal” development strategy, achieving steadyprogress in international cooperation while pursuing differentiated growth. Establish “new pillars” for globalcollaboration. This year, the Company signed the Memorandum of Cooperation and the Collaboration FrameworkAgreement with Saudi Aramco to jointly explore joint operations of Zhongjin Petrochemical and Jubail Refiningand Chemical Company, expand overseas markets through mutual equity participation and joint projects bysubsidiaries, tap the cooperation potential in operation management, resource advantages, sales channels andcutting-edge technologies, strengthen the complementarity of industrial chains, enhance the global market share,enhance the anti-risk ability of transnational operations, and ensure the sustainable growth of the Company in itsglobalization journey. Accelerate “milestones” by project construction. This year, ZPC put into production a pilotplant of α-olefins with an annual output of 1,000 tons, laying the foundation for the whole industrial chain of POE;The successful trial production of 100,000 tons/year rare earth cis-polybutadiene rubber plant marked an importantstep for the Company in the field of green tire materials; The 380,000 tons/year polyether plant produced qualifiedproducts, the 1,500,000-ton multifunctional polyester chip project was successfully put into production, and theJintang new materials and other projects were promoted in an orderly manner, which continuously expanded theCompany’s differentiated, high-end and green product matrix.
2. Enhance the whole chain with digital intelligence and lean management
In 2024, guided by our operational philosophy of “stability based, efficiency prioritized”, we relentlesslypursued cost reduction and efficiency improvement, achieved remarkable results through lean management, andrealized “zero accidents” for safe production throughout the year. Optimize and tighten the “benefit valve” in thewhole chain. This year, we adhered to the market efficiency of products as the guide, adjusted the processing schemeflexibly in time, carried out in-depth optimization of the whole industrial chain, and completed three “oil conversion”processing technologies and process reserves for “light, medium and heavy” components of catalytic gasoline; Weresearched and implemented cross-flow filtration technology of oil residue, which continuously improved thetechnical economy of slurry bed; We improved the product yield, optimized the production process, andcontinuously enhanced the market adaptability of the integrated refining and chemical operation scheme. Drive andactivate “new momentum” by digital intelligence. This year, Zhejiang Petrochemical’s “Digitization Project ofRefining and Chemical Integration” was selected as a national advanced manufacturing project, and the constructionof MES energy module continued to advance, realizing the informationization and digitalization of energymanagement; The advanced control project was put into full use, which became an important means to save energy,reduce consumption, tap potential and increase efficiency. The reservation and delivery system for hazardouschemicals of Zhongjin Petrochemical was officially put into operation, and the automatic license plate recognitionsystem for loading vehicles of Yongsheng Technology was successfully put into use. Information technology isdeeply integrated with the Company’s business processes, and various measures are taken to boost cost reductionand efficiency improvement.
3. Enhance quality and efficiency through low-carbon transformation and innovation
In 2024, we led the industrial upgrading with technological innovation and empower sustainable developmentwith clean and low carbon. Enter the “Fast Lane” via technological breakthroughs. This year, the Company invested
RMB 5.101 billion in R&D, significantly enhanced its independent R&D innovation capability, continued to builda collaborative innovation ecology of “Industry-University-Research-Application”, deeply participated in theformulation of industry standards, and was awarded the “Zhejiang High-tech Enterprise R&D Center”, which furtherstrengthened the supporting force of the technology platform. Multiple self-developed new products passedcertification, and with Zhejiang Petrochemical’s containerized marine packaging successfully delivered,technological innovation continued to elevate its product competitiveness. Paint a “new background” via low-carbon transformation. This year, the Company invested RMB 273 million in environmental protection, and ZPCled the country in energy efficiency and water efficiency of many key products for two consecutive years. Itsindustrial chain of high-value utilization of carbon dioxide realized the synergy of energy saving, pollution reduction,carbon reduction and high-value utilization of carbon dioxide, and continuously transformed environmental benefitsinto economic benefits. Yisheng Dahua carried out major energy-saving and water-saving technical transformationprojects and won the title of “Dalian Water-saving Enterprise”; Shengyuan Chemical Fiber Distributed PhotovoltaicPower Generation Project achieved grid-connected operation, which can provide 15 million kWh of green electricityevery year; Yongsheng Technology’s boiler fuel was cleaned and upgraded, effectively reducing the impact ofvolatile gases on the environment. With the exploration and practice in low-carbon transformation, RongshengPetrochemical’s ESG rating was upgraded from B to BBB, and its CDP rating also achieved excellent improvement,ranking among the top in the global general and diverse chemicals industry, and it was awarded as “the Best ListedCompany for ESG Management in 2024”.
(III) Operation synergy
1. Controlling shareholder
Rongsheng Holdings ranks 138th among the top 500 enterprises in the world, 40th among the top 500 Chineseenterprises and 5th among the top 500 private enterprises in China. At present, the Group has listed companies suchas Rongsheng Petrochemical (stock code: 002493) and Ningbo United (stock code: 600051), with its businessinvolving oil and gas upstream and trading, coal, logistics, equipment manufacturing, process engineeringtechnology, real estate, venture capital and other fields; Rongtong Logistics, a subsidiary is a national AAAA-levellogistics enterprise, which has a mature and stable carrier cooperation operation platform; Suzhou ShenghuiEquipment Co., Ltd., a holding company, specializes in the design, manufacture and sales of pressure vessels,cryogenic equipment, spherical tanks and marine equipment; Shanghai Huanqiu Engineering Co., Ltd., a joint stockcompany of the Company, has extremely rich experience in engineering EPC; A number of projects invested byZhejiang Rongsheng Venture Investment Co., Ltd. not only achieved good economic benefits, but also promotedthe 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 maintaina good foundation for cooperation. The two companies will carry out all-round consultations and cooperation, suchas: ① Frontier technology sharing cooperation: The two companies will sincerely discuss to complement eachother’s technologies through their advantages, jointly develop new technologies, processes and equipment to meetthe future market demand, and promote them on the market, and at the same time share the necessary resources forresearch and development; ② Stable crude oil supply guarantee: Saudi Aramco supplies ZPC with high-qualitycrude oil with the promised quantity of 480,000 barrels per day, and provides the Company with production rawmaterials such as naphtha, mixed xylene and straight-run fuel; ③ Interest-free purchase credit line: A credit linewith 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 positiveimpact on improving its profitability; ④ Flexible cooperation in crude oil storage: Though amicable negotiationsof related parties, the Company provides Saudi Aramco with crude oil storage tanks and related facilities inZhoushan, and Saudi Aramco needs to maintain a crude oil inventory of not less than 1.5 million metric tons, whichis helpful to ensure the crude oil supply of ZPC; ⑤ 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 strategiccooperation with overseas customers. Similarly, with the Company’s deep-seated resources for many years, SaudiAramco can also quickly enter the relevant international and domestic markets.In addition, Rongsheng Petrochemical planned to acquire 50% equity in SASREF Refinery, a wholly-ownedsubsidiary of Saudi Aramco in Jubail, Saudi Arabia, and participate in its expansion. This “powerful alliance”achieves the advance of raw material supply and the expansion of global sales channels, promotes resource sharingand industrial chain coordination, and jointly builds an industrial ecology with mutual benefits and win-win situation.As a practitioner of the “Belt and Road Initiative”, Rongsheng Petrochemical, driven by the dual drivers of “goingout” and “attracting investment”, has established a strategic fulcrum in the Middle East, laid out a supply chainnetwork around the Indian Ocean, and attracted international strategic funds to invest in China for long term,injecting continuous vitality for its prosperous development.
3. Refining and chemical sector
3.1. ZPC
With the goal of building a “private, green, international, trillion-level and flagship” base, ZPC’s refining andchemical integration project has been planned and unified at one time. At present, it has formed a world-classrefining and chemical integration base with a processing capacity of 40 million tons/year for oil refining, 8.8 milliontons/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 chemicalintegration, provide high-quality raw materials for downstream chemical devices, maximize the production ofaromatic hydrocarbons (PX) and chemical products, and minimize the output of fuel. The yield of fuel is lower thanthe industry average, with outstanding effect of reducing oil and increasing chemical. Meanwhile, through theoptimal utilization of energy resources such as steam and water, and full use of the low-temperature waste heat ofthe device, it builds the world’s largest thermal seawater desalination device to realize energy saving and emissionreduction. The refining and chemical integration rate of the project ranks first in the world, far higher than theaverage level of petrochemical industry integration in China, and the scale and integration degree of the base are ata 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 globalcrude oil, which greatly enhances its adaptability to oil price fluctuations and offers obvious advantages comparedwith other domestic leading enterprises. It has flexible product structure, and mature and reliable technology, andits main device scale and technical and economic indicators represent the most advanced level worldwide. As aresult of one-time overall planning, oil refining, aromatic hydrocarbon and ethylene fully demonstrate the conceptof “molecular oil refining” and make the best use of the material. All olefins are deeply processed into chemicalswith 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 thewhole process from a drop of oil to a piece of fiber for the Company, and formed the great advantage of upstreamand downstream integration of the polyester industry. ZPC is located in Zhoushan, a part of East China, which isthe main consumer of terminal chemicals. The Yangtze River Delta contains about 70% of China’s productioncapacity 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 ofrefined oil; Yushan Island, where it is located, is an uninhabited island. Therefore, it is convenient for developmentand utilization, and will have little impact on the surrounding society and broad development space in the future;Being close to the consumer market, ZPC enjoys a prominent position advantage as a sea-land hub at the Ningbo-Zhoushan port with convenient access to bulk materials and products, and a significantly low transportation costs.
3.2. Zhongjin Petrochemical
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 aromatichydrocarbon products with fuel oil (cheaper than naphtha) as raw material, and adopted a new technical route, whichcan solve the shortage of global naphtha supply, greatly save the procurement cost of raw materials, introduce theconcept 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 hasbeen successfully applied for the first time in ZPC 2# disproportionation plant (3.5 million tons/year). The catalysthas the excellent characteristics of “three highs”, namely high space velocity, high yield and high conversion andutilization rate of heavy aromatic hydrocarbon, and has good operation stability, whose comprehensive performanceand technical indicators have reached the advanced level in the world at present, realizing import substitution, whichreflects the staged progress of the Company’s scientific research and innovation ability and level, and is of greatsignificance for continuously improving the technical level of production equipment, improving the conversion andutilization efficiency of raw materials, reducing consumption and production costs, and realizing the aromatichydrocarbon production from large to strong and achieving green efficiency.
3.3. Rongsheng New Materials (Zhoushan)
As the expansion area of Zhoushan Green Petrochemical Base, relying on ZPC and Ningbo ZhongjinPetrochemical, it extends the industrial chain downstream and develops fine chemicals and new chemical materials.The company focuses on developing downstream products of the existing industrial chains of ZPC and Zhongjin,to achieve the value-added and efficiency increase in raw materials of Zhongjin and ZPC. At present, the projecthas started construction and related work is progressing in an orderly manner.
4. PTA sector
Since the establishment of the first private PTA production line in 2002, the Company has insisted onindependent innovation, successively developed and built the first domestic PTA process package and productionequipment with independent intellectual property rights, and realized the first domestic application of coreequipment such as large-scale oxidation reactors and high-speed pumps, which changed the long-term dependenceof China’s PTA industry on the introduction of complete sets of foreign patented technology, and promoted a largenumber of domestic equipment manufacturers to achieve leap-forward development. At the same time, we havecontinuously carried out technical transformation on existing equipment to improve production efficiency andproduct quality, and at the same time continuously optimized raw material consumption to ensure efficient use ofresources. Meanwhile, the Company has steadily promoted the launch of new production capacity, on the one hand,to meet the growing market demand, and on the other hand, to stabilize the Company’s leading position in thepolyester industry.
5. Polyester sector
With the general policy of “safety and environmental protection, quality improvement, cost reduction andbenefits increase”, the Company focuses on strengthening pandemic prevention and control, implementing hiddendanger treatment, boosting process optimization and promoting lean production management. YongshengTechnology’s 250,000-ton functional polyester film expansion project has been successfully put into production,and the Company’s annual polyester film production capacity has reached 430,000 tons, ranking the top four inChina. The Company’s PTA production enterprises make full use of the advantages of the Company’s completeindustrial chain integration to continuously tap the potential and increase benefits to produce polyester bottle chips.At present, its production capacity ranks first in China, with part of PTA production capacity consumed locally,which enhances the competitiveness of the enterprise and improve the economic benefits. The 500,000 tons ofdifferentiated fiber project of Shengyuan Phase II, which mainly produces flame-retardant, functional and dye-freefiber products, is also in progress.
．Key Accounting Data and Financial Indicators
(1) Key Accounting Data and Financial Indicators in Recent Three Years
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□ Yes ? No
Unit: RMBAt the end of 2024 At the end of 2023
Increase or decreaseat the end of this yearcompared with theend of the previous
year
At the end of 2022Total assets 377,845,944,183.98 374,918,440,311.68 0.78% 362,588,594,491.52Net assets attributableto shareholders of thelisted company
43,859,172,287.65 44,335,891,085.79 -1.08% 47,261,560,704.95
2024 2023
Increase or decreaseof this year compared
with the previous
year
2022Operating revenue 326,475,162,608.88 325,111,614,268.09 0.42% 289,094,841,612.76Net profit attributableto shareholders of thelisted company
724,484,686.45 1,158,146,248.89 -37.44% 3,340,713,394.56Net profit attributableto shareholders of thelisted company afterdeducting non-recurring profit or loss
762,154,045.53 820,092,947.36 -7.06% 2,012,164,243.32Net cash flows fromoperating activities
34,609,126,604.88 28,079,221,508.73 23.26% 19,058,136,885.36Basic EPS (RMB pershare)
0.08 0.12 -33.33% 0.33Diluted EPS (RMB pershare)
0.08 0.12 -33.33% 0.33Weighted average ROE 1.65% 2.48% -0.83% 6.87%
(2) Key Accounting Data on a Quarterly Basis
Unit: RMB
Q1 Q2 Q3 Q4Operating revenue 81,088,312,171.89 80,161,432,105.96 83,946,567,914.37 81,278,850,416.66Net profit attributableto shareholders of thelisted company
552,356,783.62 305,578,099.52 18,742,137.68 -152,192,334.37Net profit attributableto shareholders of thelisted company net ofnon-recurring gain andloss
474,627,417.74 197,749,139.41 15,815,885.95 73,961,602.43Net cash flow fromoperating activities
4,129,270,983.86 4,263,267,368.09 11,323,922,792.34 14,892,665,460.58
Whether there is significant difference between the above financial indicators or the total sum of them and thefinancial indicators related to the quarterly report and semiannual report disclosed by the Company
□ Yes ? No
4. Situation of Share Capital and Shareholders
(1) Number of ordinary shareholders and preferred shareholders with voting rights restored, and
shareholdings of the top 10 shareholders
Unit: shareTotal numberof commonshareholdersat the end ofthe reportingperiod
89,709
Total numberof commonshareholdersat the end ofthe last monthbefore thedisclosure dateof the annual
report
87,976
Total number ofpreferred shareholderswith voting rightsrestored at the end ofthe reporting period
Total number of
preferredshareholders whosevoting rights wererestored at the endof last month beforethe disclosure date
of annual report
Shareholdings of the top 10 shareholders (excluding shares lent through refinancing)Name ofshareholders
Nature of
shareholders
Shareholding
ratio
Number ofshares held atthe end of thereport period
Number ofshares held with
limited sales
conditions
Pledge, marking or freezingShare status NumberZhejiangRongshengHolding GroupCo., Ltd.
Domesticnon-state-owned legalperson
53.16% 5,382,659,734 0Not applicable 0AramcoOverseasCompany B.V.
Overseaslegal person
10.00% 1,012,552,501 0Not applicable 0Li Shuirong
Domesticnaturalperson
6.35% 643,275,000 482,456,250
Not applicable 0Hong KongSecuritiesClearingCompanyLimited
Overseaslegal person
1.74% 175,884,129 0Not applicable 0
Li Guoqing
Domesticnaturalperson
0.95% 96,525,000 72,393,750
Not applicable 0Xu Yuejuan
Domesticnaturalperson
0.95% 96,525,000 0Not applicable 0Li Yongqing
Domesticnaturalperson
0.95% 96,525,000 72,393,750
Not applicable 0Horizon Asset -HuanengTrust · JiayueNo. 7 SingleFund Trust -Horizon Asset
Other
0.54% 55,148,287 0Not applicable 0
Single AssetManagementPlanIndustrial andCommercialBank of ChinaLimited –Huatai-PineBridge CSI300 ExchangeTraded Open-End IndexSecuritiesInvestmentFund
Other
0.52% 52,504,751 0Not applicable 0
HuanengGuicheng TrustCo., Ltd. -HuanengTrust · RongyueWeichengcollective fundstrust plan
Other
0.49% 50,078,500 0Not applicable 0
Explanation of the relationshipor concerted action among theabove shareholders
Among the top 10 shareholders, Zhejiang Rongsheng Holding Group Co., Ltd. is the controllingshareholder of the Company, Li Yongqing and Li Guoqing are nephews of Li Shuirong,Chairman of the Board of Directors of Zhejiang Rongsheng Holding Group Co., Ltd., XuYuejuan is sister-in-law of Li Shuirong, forming associated relationships. In addition to theabove associated relationships, the Company has no knowledge of whether other shareholdersare related to each other or persons acting in concert.Explanation of the top 10shareholders’ participation insecurities margin trading (if any)
Zhejiang Rongsheng Holding Group Co., Ltd. holds 5,342,659,734 shares through an ordinaryaccount and 40,000,000 shares through a credit account.
Participation of shareholders holding more than 5% shares, top 10 shareholders and top 10 shareholders ofoutstanding shares not subject to sales restrictions in lending shares by refinancing business
□ Applicable ? Not applicable
Changes in top 10 shareholders and top 10 shareholders of outstanding shares not subject to sales restrictions dueto lending/returning shares by refinancing business
□ Applicable ? Not applicable
(2) Total number of preferred shareholders and shares holding of the top 10 preferred shareholders of the
Company
□ Applicable ? Not applicable
During the reporting period, the Company did not have preferred shareholders holding shares.
(3) The property rights and control relations between the Company and its actual controller disclosed by a
block diagram
5. Corporate Bonds Existing on the Date of Approval of the Annual Report
□ Applicable ? Not applicable
III. Important Considerations
Ningbo Zhongjin Petrochemical Co., Ltd., a wholly-owned subsidiary of the Company, applied to NingboBranch of China Pacific Property Insurance Co., Ltd. for a tariff guarantee insurance coverage of not more thanRMB 585 million for a guarantee period from March 1, 2025 to March 1, 2026, and the Company will provide jointliability guarantee for it, which is subject to the letter of guarantee signed by both parties.
Rongsheng Petrochemical Co., Ltd.
Chairman: Li Shuirong
April 24, 2025
Li ShuirongZhejiang Rongsheng Holding
Group Co., Ltd.
Zhejiang Rongsheng HoldingRongsheng Petrochemical
Co., Ltd.
Rongsheng Petrochemical
63.523%
63.523%
53.16%
53.16%
6.35%