Hengli Petrochemical Co., Ltd.
Environmental, Social and Governance (ESG) Report 20232023
YEAR
Contents
About Hengli PetrochemicalESG Development Management
/ 10/ 18
Report Overview
Energy Conservationand Emission Reduction,Environment Protectionwith Persistence
About This ReportMessage From ChairmanSustainable Development Highlights in 2023
Foreword
/ 02/ 04/ 06
Index of IndicatorsFeedbackAppendixes
/ 112/ 114
On-going Standardized OperationCompliance Risk ManagementStrengthening the Investor RelationsManagementAdhering to Business Ethics
StandardizingGovernance,Moving Forward withPerseverance
/ 26/ 30/ 31/ 33
Addressing Climate ChangesEnvironmental ManagementPollutant ControlStrengthening Energy Conservation andConsumption ReductionWater Resources ManagementCreating a Green Supply ChainAdvocating Low-carbon OfficeBiodiversity Conservation
/ 52/ 54/ 57/ 59
/ 36/ 38/ 41/ 47
Driven by Innovation,Pursuing StableDevelopmentImproving R&D SystemEnabling Innovation AchievementsPromoting the Development of DigitalIntelligenceProtecting Intellectual Property RightsGuarding Information Security
/ 62/ 64/ 67/ 69/ 70
CollaborativeEmpowerment andJoint Progress withPersistence
Quality Assurance FirstCustomer Service ManagementResponsible Procurement Practice
/ 74/ 76/ 78
People-oriented,Creating Happinessfor EmployeesEmployee Rights and BenefitsEmployee Growth and DevelopmentSafety Production and Occupational Health
/ 84/ 90/ 94
Care for Society toCreate the Futurewith PersistencePublic Welfare SupportRural RevitalizationCommunity Communication andDevelopment
/ 108/ 110/ 110
Foreword
About This ReportMessage From ChairmanSustainable Development Highlights in 2023
About This ReportThis is the Environmental, Social and Governance (ESG) report released by Hengli Petrochemical Co., Ltd. tothe public. Based on the principles of objectivity, standardization, transparency and comprehensiveness, thisreport discloses the Company’s ESG actions and progress in 2023. The Company aims to utilize this reportto further strengthen communication with all sectors of society, enhance public and investors understandingand support for the Company, and promote its healthy and stable development .
This report takes “Hengli Petrochemical Co., Ltd.” as the main body, including the subsidiaries, with thesame scope as that of the Company’s annual report unless otherwise specified.Scope of Report
From January 1, 2023 to December 31, 2023 (“Period of Report”). In order to enhance the comparability andperspectiveness of this report, some of the content traces back to previous years or has prospectivedescriptions as appropriate. This report is issued once a year in line with the financial year.
Period of Time
The data used in this report include the original data of the Company’s actual operation, public data ofgovernment departments, annual financial data and relevant internal statistical statements, etc. The financialdata in this report is in RMB. In case of any inconsistency with the financial report, the financial report shallprevail. This report is prepared in Chinese and English respectively. In case of any discrepancy betweenChinese and English, the Chinese version shall prevail.
Data Description
In this report, for the convenience of presentation and reading, the following terms have the following meanings(unless the context otherwise specifies):
Title Description
The Board of Directors undertakes to supervise the content of the report and ensure that it is free from any falserecords or misleading statements, and is responsible for the truthfulness, accuracy and completeness of thecontent.
Validation and Approval
This report is published in electronic form. You can read and download the electronic report on the officialwebsite of the Company (www.hengliinc.com) or the website of Shanghai Stock Exchange (www.sse.com.cn).Report Acquisition
Basis of Preparation
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. ? - Standardized Operationof Listed Companies (Revised in December 2023)Chinese Academy of Social Sciences (CASS) Guide to Corporate Social Responsibility Reporting in China(CASS-ESG ?.?)Global Reporting Initiative GRI Sustainability Reporting Standards (GRI Standards) (2021)UN Sustainable Development Goals (SDGs)
Hengli Petrochemical, the Company, we, or us
Hengli GroupHengli Chemical FiberKanghui New MaterialHengke Advanced MaterialsHengli Petrochemical ChemicalHengli Petrochemical RefiningHengli Petrochemical (Dalian)
Deli Chemical FiberSusheng Thermal PowerJiangsu XuandaHengli Petrochemical (Huizhou)Kanghui Dalian New Material
Hengli Petrochemical Co., Ltd.Hengli Group Co., Ltd.Jiangsu Hengli Chemical Fiber Co., Ltd.Kanghui New Material Technology Co., Ltd.Jiangsu Hengke Advanced Materials Co., Ltd.Hengli Petrochemical (Dalian) Chemical Co., Ltd.Hengli Petrochemical (Dalian) Refining Co., Ltd.
Hengli Petrochemical (Dalian) Co., Ltd.Jiangsu Deli Chemical Fiber Co., Ltd.Suzhou Susheng Thermal Power Co., Ltd.Jiangsu Xuanda Polymer Materials Co., Ltd.Hengli Petrochemical (Huizhou) Co., Ltd.Kanghui Dalian New Material Technology Co., Ltd.
AbbreviationMeaning
Environmental, Social and Governance (ESG) Report 2023
0302
0504
Message FromChairman
We adhere to compliance operation and deepen ESG practice. The Company continuously improve theeffective governance mechanism and internal control system, ensure the timeliness and operability of the system,strengthen the standardized operation and information disclosure, reveal the industry prospect and developmenttrend involved in the Company in a multi-dimensional manner, and highlight the value of the Company. TheCompany continues to improve and standardize operation, efficiently transmits enterprise value, continuouslydiscloses ESG annual reports, meets the indicator requirements of mainstream rating agencies such as MSCI, anddeeply explores the highlights of the Company in terms of governance, environment and social responsibility.We continue to guard security and promote green development. Each business sector of the Companyimplements the safety and environmental protection responsibility system, divides the safety and environmentalprotection responsibility layer by layer and assigns it to each person. Each sector regularly carries out fire drill andsafety training to improve employees’ awareness of safety production and emergency response ability. Eachsector actively responds to the national call of “Carbon Peaking and Carbon Neutrality”, increases investment inscientific and technological research and development, develops green and environment-friendly products,continues to promote the green low-carbon process, and promotes green and high-quality development.We scrupulously adhere to being people-oriented and fulfill our social responsibilities. Each sector of the
Company continues to improve team building and talent training, effectively enhances team cohesion and employeesense of belonging, establishes talent training mechanism, attracts excellent talents through multiple channels,improves training system and incentive mechanism, stimulates employee initiative and creativity, and creates ahigh-quality and high-level staff team. The Company attaches great importance to the harmonious coexistence withthe resident community, actively gives back to the surrounding residents through rich and colorful communityactivities, and promotes the common growth and prosperity of both parties.We stick to the spirit of property rights and build brand power. The Company continues to improve the
transformation capability of independent intellectual property achievements and promote the high-qualitydevelopment of the enterprise. “Hengli” brand has been ranked among the “Top 500 World Brands” for sixconsecutive years, ranking No. 366 in the list, and has been officially recognized as one of the “high-performingChinese brands”. The ranking of “Hengli” has risen by 70 places, fully demonstrating the brand influence, marketshare, brand loyalty and global leadership of “Hengli”.“To establish a world-class enterprise and to create an international well-known brand.” Hengli Petrochemical willcontinue to carry out the mission of serving China with industry, forge ahead, keep in mind the arduous developmentprocess, practice the ESG concept, keep pace with the motherland and travel with the times, and realize the “Henglidream” of promoting national progress with industrial development.
The year 2023 was the opening yearof fully implementing the spirit of the20th National Congress of the CPCand the key year of the 14th Five-YearPlan. “High-quality Development isthe Top Task of Building China into AModern Socialist Country in AllRespects.” We always adhere toinnovation and development, adhereto the development concept “eithernever do it, or be the best”, and makeHengli achieve either the first or theonly remarkable achievement with thespirit of constantly striving forperfection and the enterprising spirit oftenacious struggle.
Chairman of Hengli Petrochemical Co., Ltd.
Fan Hongwei
Environmental, Social and Governance (ESG) Report 2023
Sustainable DevelopmentHighlights in 2023
Economic Performance
Total assets 2023
26,059,902.09
RMBten thousand
RMBten thousand
RMBten thousand
RMBten thousandOperating income 202323,479,067.24
Net profit attributable to parent company 2023
690,460.39
R&D expenditure 2023 137,102.85
Investment in environmental protectionEnvironmental protection trainingRenewable energy consumptionAnnual reduction of greenhouse gas emissionsTotal circulating water/recycled water
RMB ten thousandSessionTon of standard coal
tCO
eTen thousand tons
23,297.07
189,883.911,273,102.8665,952
Indicator x namesUnit2023
Environmental Performance
General Meeting of ShareholdersMeeting of the Board of DirectorsMeeting of the Board of SupervisorsMeetings of special committees
TimeTimeTimeTime
Indicator namesUnit2023
Corporate Governance Performance
Indicator names
Number of R&D personnelNumber of newly granted patentsNumber of patents heldTotal number of employees trainedCoverage rate of employee physical examinationCoverage rate of safety education and training
Safety emergency drillSafety production input
Voluntary activityWelfare expenditureTotal tax
Unit2023Person
Item
ItemPerson-time
%%
TimeRMB ten thousand
TimeRMB ten thousandRMB ten thousand
Social Performance
3,263
1,331514,766
4,64759,201.52
3,609 68,529.53 1,364,480.56
0706
Environmental, Social and Governance (ESG) Report 2023
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Report Overview
About Hengli PetrochemicalESG Development Management
/ 10/ 18
Hengli (Yingkou) Industrial Park
Hengli (Suqian) Industrial Park
Hengli (Nantong) Industrial Park
Hengli (Suzhou) Industrial Park
Hengli (Huizhou) Industrial Park
Hengli (Dalian Changxing Island) Industrial Park
Hengli (Yangtze River Delta)Industrial Park
Headquartered in Dalian, China, Hengli Petrochemical has an upstream capacity of 20 million tons of refining industry, 1.5million tons of ethylene and 5 million tons of coal chemicals. It is the global largest PTA plant, and strives to build theworld’s largest functional fiber, film and plastic new material production capacity, and arranges seven production basesin China.
Business LayoutBase Layout
1110
Hengli Petrochemical Co., Ltd. was established in November 2002,with the registered capital of RMB 7.04 billion.TheCompany engages in many fields to meet production and consumption demands, including petroleum refining,petrochemical, aromatic hydrocarbon, alkene, PTA, ethylene glycol, textile yarn, industrial yarn, engineering plastics,polyester film, degradable plastic, and other high-end chemical raw materials, and a variety of new chemical materialsand applications. The Company is the first listed company in the industry realized the integration of “crude oil-aromatichydrocarbon, olefin-PTA, glycol-polyester new materials” in the whole industrial chain.The Company has four production capacity clusters of global benchmark level, including a 20 million tons/year refiningintegration project, a 5 million tons/year modern coal chemical plant, a 1.5 million tons/year ethylene project with thelargest single unit in the world and 7 sets of 16.6 million tons/year PTA units with the largest single unit in the industry. TheCompany has successfully opened up the upstream “bottleneck” business link, resolved the constraints on rawmaterial supply, constructed a modern industrial system integrated with “world-class chemical refinery + modern coalchemical equipment”, realized the “large chemical” strategic support platform of deep integration of “oil and coalchemistry”.Additionally, the company has strategically positioned itself in downstream chemical new materials such asdifferential fiber, functional film, engineering plastics and degradable new materials, thus achieving the systematicindustrial pattern of “large chemical platform” and “new material extension”. The Company has nearly 40,000employees and has established a “Nationally Recognized Enterprise Technology Center”. The enterprisecompetitiveness and product brand value are in the forefront of the international industry.The Company is headquartered in Dalian, China, spanning from north to south, with seven production bases located inSuzhou, Dalian Changxing Island, Nantong, Suqian, Yingkou, Huizhou and Yangtze River Delta Integrated DemonstrationZone.It is committed to becoming a global supplier of new chemical materials across the entire industrial chain. In theupstream, middle and downstream of the whole industrial chain of polyester and new chemical materials, HengliPetrochemical has laid out high-quality and high-efficiency capacity structure and public engineering supporting facilitiescharacterized by “large-scale equipment, large-scale production capacity, integrated structure, advanced process,green environment protection and complete supporting facilities”, and is in the leading level of the industry in terms of thescale of single unit, total production capacity and production process. The development path of the Company emphasizesthe equal emphasis on market differentiation, high-end technology, large-scale equipment and business integration. Ithas the market and technology linkage innovation mechanism formed by long-term accumulation and exploration. Thetechnical research and development strength and new product innovation capability are in the same line. Hengli ChemicalFiber, Deli Chemical Fiber, Hengke Advanced Materials and Kanghui New Material have all passed the certification of“national high-tech enterprise”.
Company Profile
About Hengli Petrochemical
Industrial Layout
1312
We are dedicated to achieving the whole industrial chain development featuring a“platform + new materials” approachfrom “a drop of oil” to “a piece of yarn”. We have always focused on main business and started from the polyesterfiber industry. In the process of growth, we successfully shattered the “bottlenecks” one by one and make continuousefforts to develop new material industries such as fiber, film and plastic while moving towards the integrated platform ofupstream petrochemical, refining, and coal-chemical, hence creating an industrial system featuring a “major chemicalplatform” and “expansion to new materials”.
Layout of Hengli Petrochemical Industry Chain
Crude oilNaphtha
C4
Chemical coalHydrogen from coal
Ethylene
Formaldehyde
PTA
PBAT degradable plasticModified PBAT
The “degradable material” industry chainThe “high-end polyester” industry chainThe “photovoltaic” industry chainThe “new energy material” industry chain
The “engineering plastic” industry chain
The “new energy material” industry chainThe “high-end fine chemical intermediate” industry chainThe “high-end fiber” industry chainThe “degradable material” industry chain
Dry/wet lithium battery diaphragmFilament yarn for civil usefilament yarn for industrial use
PBT resinBOPET film
Bisphenol A
POMABS/PS
PCIsopropanolNew energy battery electrolyte solventEthanolamine, ethylenediamine, piperazine
1,3-propanediol
PTMEG
BDOSuccinic acid
PhenolAcetoneAdipic acidEthylene oxide
Maleicanhydride
Aromatichydrocarbon
Petroleumbenzene
PXButadieneHDPEPolypropylene
Polypropylene
MTBEIsooctane
StyreneEthylene glycol
Dehydrogenationchemical industry
MethanolHydrogen, oxygen, nitrogen, synthesis gas
Acetic acid
Gasoline, diesel, jet fuel, lubricant, etc.
Modified PBT
Existing large-scalerefining industry chain
Existing polyester, textile andchemical new material industrychains
Relying on the large-scale refining plan tolayout the high-end chemical new materialindustry chain
Environmental, Social and Governance (ESG) Report 2023
Photovoltaic backplate film, lithiumtelephone protection film, MLCCsubstrate film, optical film
Propane、isobutane
Events in 2023
Two production lines in thefourth phase of HengliChemical Fiber Industrial YarnProject were successfully putinto production
Hengli Petrochemical andChina National Chemical built ahigh-end new material scienceand innovation platform aroundthe “bottleneck” field
April 2023
May 2023
The invention patent of JiangsuHengli Chemical Fiber Co., Ltd.under Hengli Petrochemical,“a method for improving thequality of polyester industrialyarn”, was included into theList of China Patent ExcellenceAwards
PET film of Kanghui NewMaterial Technology Co., Ltd.under Hengli Petrochemicalwon the lowest enterpriseseparate tax rate of 2.2% inSouth Korea for anti-dumping.
The solar energy backboardbasement membraneindependently researched anddeveloped by Kanghui NewMaterial Technology Co., Ltd.under Hengli Petrochemicalobtained German T?VRheinland Certificate
Hengke Advanced Materialswon the appraisal of“Enterprise with OutstandingSocial Contribution” ofNantong City
The first production line ofKanghui New Material Projectwith an annual output of 440million square meters ofsuper-strong lithium batterydiaphragm was completed.
Another film production line ofKanghui New Material wassuccessfully started
Kanghui New Material 30.4MWDistributed Photovoltaic PowerGeneration Project wasgrid-connected and put intooperation
May 2023
May 2023
June 2023
July 2023
July 2023
October 2023
November 2023September 2023
May 2023
Hengli Petrochemicalpresented “2023 IndustrialGreen DevelopmentAchievement Exhibition”
Hengli (Huizhou) IndustrialPark 5 Million Tons/Year PTAProject was fully put intoproduction
1514
Honors and Achievements in 2023
January 2023January
2023
Date of GrantWinnerHonor NameGrant Unit
July2023July2023July2023
August
2023
September
2023
October
2023
Hengli Petrochemical Refining,Hengli Petrochemical Chemical,
Hengli Petrochemical (Dalian)Hengli Petrochemical Refining,Hengli Petrochemical Chemical
“Leader” Enterprise of Energy Efficiency
in Key Energy-consuming Industries in
2022Key Water Use Enterprise and WaterEfficiency Leader in the Park in 2022
Ministry of Industry andInformation Technology
February2023
Hengli Petrochemical Chemical
Hengli Petrochemical
brand financeUK brand financeNational Green Factory 2022The 15th of the 25 most valuable chemicalbrands in the world in 2023
July2023
Hengli PetrochemicalHengli Petrochemical
Fortune ChinaUS Chemical and Engineering
News (C&EN)Ranked 61st among the top 500 listedcompanies in China of Fortune in 2023
July2023
Kanghui New MaterialKanghui New Material
Kanghui New Material
China National Light Industry
CouncilChina National Light Industry
Council7th of “Top 10 Enterprises in Plastics
Industry”
July2023
Kanghui New Material
China National Light Industry
CouncilNSF-ISR108th of “Top 200 Enterprises in China Light
Industry” in 2022
August
2023
Hengke Advanced MaterialsHengke Advanced Materials
Department of Water Resources
of Jiangsu ProvinceChina National Textile and
Apparel Council
Jiangsu Provincial Department
of Science and Technology
Water-saving Enterprise in Jiangsu Province
October
2023
Hengke Advanced Materials
Deli Chemical Fiber
Department of Ecology andEnvironment of Jiangsu Province
and Jiangsu Federation of
Industry and Commerce“Leading Enterprise of GreenDevelopment” in Jiangsu Province
November
2023
Hengli Chemical Fiber
Ministry of Industry and
Information TechnologyGreen Design Demonstration Enterprise for
Industrial Products
November
2023
Hengke Advanced Materials
CLP Hongxin Information
Technology Co., Ltd.AAA Integration of Informatization andIndustrialization Management System
Certificate
Provincial Engineering Technology
Research Center
November2023
Ministry of Industry andInformation TechnologyHengke Advanced Materials
National-level “Intelligent Manufacturing
Excellent Scene”
Polyester New Material Technology
Innovation Center
Li-ion battery diaphragm and compositecurrent collector-based membrane productspassed the certification of automobile quality
management system
80th of “Top 100 Science & Technology
Enterprises in China Light Industry”
11th of Top 50 Global Chemical Enterprises
Ministry of Industry andInformation TechnologyMinistry of Industry andInformation Technology
Liaoning Provincial Departmentof Industry and InformationTechnologyLiaoning Province Digital WorkshopKanghui New Material
November
2023
Date of GrantWinnerHonor NameGrant Unit
November2023
December
2023
November
2023
Kanghui New MaterialHengke Advanced Materials
Liaoning Province Intelligent FactoryNational Intellectual Property
Advantage Enterprise
Liaoning ProvincialDepartment of Industry andInformation Technology
December
2023
Hengli PetrochemicalHengli Petrochemical
Second Place among the Top 100Enterprises in Dalian in 2022First among Top 100 ManufacturingEnterprises in Dalian in 2022
Dalian Enterprise Federationand Dalian EntrepreneursAssociationDalian Enterprise Federationand Dalian EntrepreneursAssociation
China National IntellectualProperty Administration
The Company gradually establishes the ESG management structure, and the Committee on Strategy and SustainableDevelopment is established under the Board of Directors, which is mainly responsible for promoting the sustainabledevelopment capability of the Company in terms of long-term development strategy, including environmental, social andgovernance aspects, researching, evaluating and making suggestions on ESG topics and policies, guiding the executionand implementation of the Company’s sustainable development work, and providing important support for theCompany’s ESG development.
Construction of Sustainable Development
The Company closely combines the development concept with the United Nations 2030 Sustainable Development Goals(SDGs), establishes the overall ESG management concept of the Company, continuously promotes the sustainabledevelopment strategy, and helps the ESG development of the Company through its own practical actions.Enterprise SDGs Action Presentation
ManagementDimension
Concept and Action
SDGs
CorporateGovernance G
Low Carbon
Mission E
Industrial Value S
Employee Rights
and Interests S
Social Responsibility S
Adhere to the standardized administrationof the three meetings
Improve the level of environmentalmanagement
Perfect the digital supply chain
Improve the employee career developmentsystem
Assist social public welfareBuild a harmonious community
Unblock employee expression channelStrengthen the management of safetyproductionConduct strict management of chemicals
Continuously improve customer satisfactionInsist on sunshine procurement
Strengthen pollution prevention and controlmanagementImprove carbon emission managementDevelop clean technology
Continuously improve internal controlsystem and risk management processImprove ESG management structureActively carry out investor relations work
ESG Management Structure
Responsible for approving theESG strategy and developmentdirection of the Company
Responsible for studying theCompany’s sustainabledevelopment strategicobjectives and ESG topicpolicies, and guiding theexecution and implementationof the Company’s sustainable
development work
Responsible for the dailycoordination between theCommittee on Strategy andSustainable Development andrelevant departments and the
preparation fordecision-making, etc.
1918
Environmental, Social and Governance (ESG) Report 2023
ESG Development Management
Board of Directors
Office of the Board of Directors
(Securities Department)Committee on Strategy and Sustainable Development
Decision-makingManagementExecutive
Compliance operationTax payment according to lawRisk managementBusiness ethicsImprovement of corporate governanceTimely disclosure of informationcapacity for sustainable developmentEnergy saving and emission reduction
Product qualityProtection of the rights and interestsof customersGood faith managementCarrying out voluntary activitiesPromotion of community developmentProtection of the environmentGood faith cooperationMutual benefit and win-win
Sticking to business ethicsSunshine procurement
Organization of public welfareprojectsProviding employmentPollution control
Safeguarding the rights and interestsof employees
Compliance with laws and regulationsActive tax paymentStrengthening internal controlGovernment supervisionCompany announcementCompliance disclosureIssue of CSR ReportDevelopment of clean energyTrade union organizationRegular trainingEmployee ActivitiesPeriodic Health CheckSatisfaction surveyCustomer complaintsProvision of quality service
Building a Career Development ChannelRich salary and benefitsProtection of occupational health
The Company places great emphasis on communication and engagement with stakeholders, comprehends their needsthrough diversified channels, actively takes measures to respond appropriately, seeks the support and trust ofstakeholders, and promotes continuous improvement in social responsibility management.
Communication with Stakeholders
Hengli Petrochemical conducts online questionnaire survey on stakeholders, collects opinions of all stakeholders,determines annual important issues by establishing material issues identification mechanism and integrating analysis,research and judgment of internal and external stakeholders, defines the direction of sustainable development, insists onpursuing economic benefits while actively performing social responsibilities, and realizes sustainable development goals.
Analysis of the Material Issues
StakeholderExpectation and demand
Communication channelsand methods
Government
Shareholdersand investors
Employees
Customers
Community
Suppliers
Sorting outimportant issues
Assessment of Material Issues
Setting up acore issue matrix
Investigation andcommunication
The Company focused onESG evaluation indicators(MSCI-ESG rating, SASB,
WIND rating, etc.) in thecapital market according torelevant ESG policies andregulations, international anddomestic ESG standards,analyzed ESG issuesdisclosed in the same industry
by benchmarking, and sorted
out 25 important issues.
The Company preparedstakeholder questionnairesbased on the issues, includinggovernment and regulatoryauthorities, industryassociations and scientificresearch institutions, suppliersand partners, investors andshareholders, employees,customers, and public andcommunity organizations. In2023, the Company recovereda total of 566 questionnaires.
Based on the issues affecting thesustainable development of HengliPetrochemical, operation strategy and
issues highly concerned by
stakeholders, the Company madesubstantial evaluation and determinedthe issues of high importance, medium
importance and general importance.
Based on the survey results of thequestionnaire, in combination with thedisclosure requirements of theregulatory authorities, sustainabledevelopment management practices ofthe Company, industry characteristics,etc., the Company made a rankinganalysis from the two dimensions of“Importance to the Company’sSustainable Development” and“Importance to Stakeholders”, andfinally confirmed the matrix of materialissue.
Environmental, Social and Governance (ESG) Report 2023
2120
2322
Importance to stakeholders
Importance to the sustainable development of the Company
Environmental management
Energy management
Addressing climate changes
Material management
Water resource management
Pollutant emissions
Clean energy
Green production
Labor relations management
Employee training anddevelopment
Occupational health and safety
Chemical safety
Research and innovation
Product responsibility
Protection of customer rightsand interests
Information security andprivacy protection
Responsible supply chainmanagement
Social public welfare
Protection of shareholderrights and interests
Governance strategy andorganizational structure
Business ethics
Tax governance
Risk management
Information disclosurequality
ESG governance
Moderately important Highly important
Generally importantModerately important
1718
2223
Core ESG Issues of Hengli Petrochemical in 2023
Labor relation management, employee training and development,occupational health and safety, chemical safety, R&D andinnovation, product responsibility, protection of customer rights andinterests, information security and privacy protection, responsiblesupply chain management, social public welfare
Environmental management, energy management, addressingclimate change, materials management, water resourcesmanagement, pollutant emission, clean energy, green production
Protection of shareholders’ equity, governance strategy andorganizational structure, business ethics, tax governance, riskmanagement, information disclosure quality, ESG governance
Social Issues
Environmental Issues
Corporate Governance
Issues
On-going Standardized OperationCompliance Risk ManagementStrengthening the Investor Relations ManagementAdhering to Business Ethics
/ 26/ 30/ 31/ 33
Standardizing Governance,
Moving Forward with
Perseverance
The Company convenes and holds the general meeting of shareholders in strict accordance with the Articles ofAssociation, the Rules of Procedure of the General Meeting of Shareholders and other relevant regulations and requirements,fully protects the shareholders’ right to know, participate in and vote, and safeguarded the legitimate rights and interestsof all shareholders, especially minority shareholders.
Operation of the Three MeetingsGeneral Meeting of Shareholders
The Company establishes the governance structure of “three meetings and one layer”, strictly abides by the CompanyLaw of the People’s Republic of China (hereinafter referred to as the Company Law), the Securities Law of the People’sRepublic of China (hereinafter referred to as the Securities Law) and the Rules Governing the Listing of Stocks on the ShanghaiStock Exchange and other laws and regulations, constantly establishes and improves various management systems suchas the general meeting of shareholders, the Board of Directors, the Board of Supervisors, etc., and forms a coordinatedcorporate governance structure between the power organ, the decision-making organ, the supervision organ and themanagement layer with clear division of powers and responsibilities, respective duties, effective checks and balancesand scientific decision-making. During the reporting period, the corporate governance status met the requirements ofrelevant listed company governance laws, regulations and normative documents.
Corporate Governance Overview
On-going Standardized Operation
Committee on Strategy andSustainable Development
Audit committeeNominationCommitteeRemuneration andEvaluation Committee
Internal Control and
Audit Department
Financial ManagementCenterFund ManagementDepartmentAsset ManagementDepartmentFinance DepartmentStrategic InvestmentDepartmentAdministrative andHuman ResourcesDepartmentLegal AffairsDepartmentManagement
Organizational Structure of the Company
The Company convenes and holds the meetings of the Board of Directors in strict accordance with the Company Law, theArticles of Association, the Rules of Procedure of Board of Directors and other provisions, effectively ensuring the scientificityand effectiveness of the decision-making of the Board of Directors.The Company attaches importance to the diversification of the Board of Directors. There are 8 members in the Board ofDirectors, including 3 independent directors and 1 female director. With the knowledge, skills and qualities required toperform their duties in the fields of finance, law and textile industry, all directors are diligent, responsible, prudent indecision-making, and fully exercise and perform the functions and powers of directors. The Board of Directors of theCompany operates in a standardized and efficient manner, and no director has voted against or abstained from voting,and no resolution of the Board of Directors has not been passed. During the reporting period, the Board of Directors held9 meetings, passed 63 resolutions, and the attendance rate of the Board of Directors was 100%.
Board of Directors
Key PerformanceKey Performance
Key PerformanceKey PerformanceDuring the reporting period,the Company held general meetings of shareholders proposals were deliberated and passed
Environmental, Social and Governance (ESG) Report 2023
2726
General Meeting of ShareholdersBoard of SupervisorsBoard Office
Secretary of theBoard of Directors
Board ofDirectors
During the reporting period, there werewith the attendance rate of , andresolutions of the Board of Directors were passed.
meetings of the Board of Directors of the Company,
100%63
2928
During the reporting period,Audit Committetimes
meetings of special committees were held, including:
time
Nomination Committee times
times
Remuneration and EvaluationCommittee
Committee on Strategy andSustainable Development
The Company has established the Remuneration and Evaluation Committee and the Implementation Rules of theRemuneration and Evaluation Committee under the Board of Directors to standardize the determination procedure of seniormanager remuneration, formulate the remuneration plan or scheme according to the main scope, responsibilities andimportance of the management posts of directors and senior management personnel and the remuneration level of otherrelevant enterprises and posts, and be responsible for reviewing the performance of the directors and senior managersof the Company and evaluating their annual performance. The Remuneration and Evaluation Committee submits theallowance plan of the directors and the remuneration distribution plan of the senior managers to the Board of Directors forapproval.The senior manager remuneration of the Company is composed of performance-based salary, equity compensation,retirement pay and welfare, which fully reflects the design requirements of combining short-term and long-termincentives and balancing the interests of individuals and teams. It fully mobilizes the enthusiasm of the responsibleperson, protects the interests of shareholders and realizes the common development of the Company and themanagement.
Salary Management
The Company has formulated the Rules of Procedure of Board of Supervisors in strict accordance with the Company Law, theArticles of Association, the Governance Code for Listed Companies, etc., to standardize the discussion and decision-makingprocedures of the Board of Supervisors, and to ensure the efficient and orderly operation of the Board of Supervisors.The Board of Supervisors is composed of 3 supervisors, including one chairman of the Board of Supervisors and oneemployee supervisor, who performs the supervisory functions diligently and responsibly, including the effectivesupervision over the Company’s operation and development, financial status, related transactions, major matters andthe legality and compliance of the Company’s directors and senior managers in performing their duties.
Board of Supervisors
Key PerformanceKey Performance
Key PerformanceKey Performance
Diversification of the Board of Directors of Hengli Petrochemical
The Board of Directors has an Audit Committee, a Nomination Committee, a Remuneration and Evaluation Committeeand a Committee on Strategy and Sustainable Development. The special committeesare responsible to the Board ofDirectors, perform their duties in accordance with the Articles of Association and the authorization of the Board ofDirectors, applies professional knowledge to assist the Board of Directors in making professional decisions, andeffectively improves the efficiency of corporate governance.
Audit CommitteeNomination CommitteeCommittee on Strategy
and Sustainable Development
Number of directors (person)
Remuneration andEvaluation Committee
66.67%
Persons Persons Persons
Persons
66.67%
66.67%
33.33%
Key PerformanceKey Performance
13%
87%
Female：13%Male：87%
38%
Age
12%
50%
Over 60 years old：12%50-60 years old：38%Below 50 years old：50%
Gender
Proportion of independent directors (%)
During the reporting period, the Company heldmeetings of the Board of Supervisors,with the attendance rate of , and reviewed proposals.
100%31
During the reporting period, the average remuneration of independent directors of the Company was RMB
and the average remuneration of non-independent directors was RMB200,000, 1,295,700.
3130
During the reporting period,the Company disclosed a total of temporary announcements and periodic reports.
In 2023, the Company heldopen exchange meetings for investors, and conductedinteractions on SSE E Interactive Platform.
4110
Construction of Internal Control System
Compliance Risk Management
The Company has formulated the Internal Control System in accordance with the Basic Norms of Enterprise Internal Controland other laws and regulations, establishes, perfects and effectively implements internal control, evaluates itseffectiveness, and truthfully discloses the internal control evaluation report, reasonably guarantees the safety of theCompany’s operation and management and the reliability of financial information, improves the operating efficiency andprofitability, and promotes the realization of development strategy.In order to further strengthen and standardize the internal control of the Company and promote the high-qualitydevelopment of the Company, the Company has revised and improved the existing relevant governance systems incombination with the change of regulatory rules and the internal control management requirements of the Company, andtotally revised and newly built 13 corporate governance systems. During the reporting period, the Company had no majorand important defects in internal control over financial reports and non-financial reports.Deepening Risk Management
The Company constantly improves the system, promotes the internal control and risk management level, strengthens thestandardized management, firmly adheres to the system red line and the risk bottom line, realizes the matching ofoperation development and risk control ability, and ensures the continuous, stable and healthy development of theCompany. The Company has established a set of relatively sound and perfect accounting system, financial management,risk control, decision-making of major events and other internal control management systems, which can be effectivelyimplemented to meet the current development needs of the Company. At the same time, the Company will constantlyupdate and improve relevant systems according to the development situation to ensure the healthy and stable operationof the Company.Strengthening Tax AdministrationThe Company strictly complies with the Law of the People’s Republic of China on the Administration of Tax Collection, theEnterprise Income TaxLaw of the People’s Republic of China, the Individual Income Tax Law of the People’s Republic ofChina and other national laws and regulations, establishes the Financial Management System, standardizes the financialmanagement process and implements the tax management responsibilities. Each subsidiary employs relevant perennialtax consultant or special tax consultant to provide professional guidance and training on relevant financial and tax issuesof the Company, so as to prevent tax management risks. In terms of tax team construction, the Company regularlyorganizes and carries out national finance and taxation policy research, sharing and training, so as to improve the legalcompliance and tax payment awareness and policy level of the Company’s tax management personnel, and enhancethe working ability of tax compliance management.Regulating Related Transactions
In accordance with the Company Law, the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange and otherrelevant provisions, the Company has formulated the Management System for Related Transactions (Revision in ????) tostipulate the review procedures for related transactions and the requirements for avoiding voting. The internal control ofthe Company’s related transactions follows the principles of fairness, impartiality, openness and equal value andcompensation. All related transactions follow the market-oriented operation mode and the market-oriented principle,without any damage to the interests of the Company and other shareholders.
Key PerformanceKey Performance
Information Disclosure Compliance
Strengthening the InvestorRelations Management
The Company has formulated the Information Disclosure Management System, the Annual Report Information Disclosure MajorError Accountability System and other systems to carry out various information disclosure work with high quality inaccordance with the information disclosure process, follows the principles of truthfulness, accuracy, completeness,timeliness and fairness, ensures the timeliness and effectiveness of announcement disclosure, and protects thelegitimate rights and interests of all shareholders. During the reporting period, there was no error in the Company’sinformation disclosure.
Investor ExchangeThe Company attaches great importance to investor relations management, revises and improves the Investor RelationsManagement System(Revision in ????), continues to carry out investor relations management work, establishes diversifiedcommunication channels, and actively communicates with investors through various channels such as performanceexplanation meeting, investor field survey, SSE E Interactive Platform and investor hotline. As different types of investorshave different degrees of concern and core concerns, the Company adopts differentiated investor relations managementstrategies to respond to the demands of investors and maintain a good trust relationship between the Company andinvestors. During the reporting period, the Company was awarded the “Excellent Practice of the PerformanceExplanation Meeting of 2022 Annual Report of Listed Companies”, which showed the full recognition of the managementof investor relations of the Company.
Key PerformanceKey Performance
3332
Adhering to Business Ethics
Protection of Shareholders’ Rights and Interests
The Company attaches great importance to returning shareholders in the form of cash dividends, strictly implements theprofit distribution policy specified in the Articles of Association, and has launched the Plan for Return to Shareholders in theNext Five Years (2020-2024), and has made a detailed plan for the cash dividend policy in the next five years incombination with the Company’s profitability, operation and development planning and other factors. Since thereorganization and listing in 2016, the accumulated dividend and cash distribution amount of the Company has reachedRMB 22,371,095,700 (including the proposed cash dividend amount), accounting for 41.08% of the accumulated netprofit attributable to the parent company.
Implementing the Integrity ConstructionThe Company attaches great importance to the integrity construction and anti-corruption work, strictly complies with therequirements of relevant laws and regulations, issues the Statement on Business Ethics and Anti-Corruption System, prohibitsall bribery and corrupt practices, and the Legal Department is responsible for supervising the misconducts such as insidertrading, corruption and money laundering, so as to avoid such misconduct as insider trading, corruption and moneylaundering. At the same time, the Company actively advocates contractors, suppliers and other stakeholders to jointlyabide by the relevant anti-corruption systems. During the reporting period, there were no major corruption cases in theCompany.The Company establishes internal procedures for reporting unethical and corrupt practices, to encourage employees andbusiness partners to report any corrupt practices that have occurred or may occur to their immediate managers, laborunions or any person with supervisory capacity, to require confidentiality of the informant’s information, to handle anyretaliation seriously, and to give the informant maximum protection. Employees expose the reports through anonymousreport. The Company sets up anonymous report mailboxes, which arechecked by the Legal Department on a regularbasis.Strengthening Integrity EducationIntegrity culture is one of the Company’s core corporate culture. The Company and each business department regularlyprovide appropriate anti-corruption training and publicity to all relevant employees, so as to cultivate the employees’awareness of honest practice and away from commercial bribery, so as to promote the integrity by the environment. Forthe purpose of anti-commercial bribery and anti-corruption, the Company requires the managers of all departments tosign the integrity management responsibility letter, so as to lower the anti-corruption responsibility to the department.The department manager is not only the model of integrity practice, but also the responsible person of integrity of thedepartment. At the same time, it is required to attach a supplementary anti-bribery agreement to each contract to guardagainst commercial bribery.There was no violation of discipline and business ethics by internal employees during the reporting period. The Companysigned the integrity management responsibility letter with all department heads, procurement and financial personnel,and the signing rate of all department heads, procurement and financial personnel was 100%.
CaseThe Company participated in industry-leading roadshow activity
“Shanghai Listed Company Roadshow”
Industry Leading Special Activity
The Company actively participated in the “Shanghai Listed Company Roadshow” Industry LeadingSpecial Activity organized by Shanghai Stock Exchange, introduced the Company’s businessdevelopment and industrial development to the market in detail, and deeply promoted the Company’sstrategic growth space and long-term investment value, showing the good style and appearance ofreturning investors with high-quality development.
Cash dividend per share (Yuan)
Proportion of net profit attributable toshareholders of listed company inconsolidated statements (%)
Total cash distribution (tax included)(RMB ten thousand )
Note: The amount of cash dividends in 2022 included the amount of shares repurchased in cash and included in cash dividends.
1.01
710,949.08
45.78
/200,006.12
86.27
0.55
387,150.49
56.07
Key Performance202120222023Cash Dividends of the Company
CaseAlways Raising the Alarm, Keeping Integrity in Mind
In order to continuously and deeply promote theconstruction of clean government and anti-cor-ruption work, on December 22, 2023, Hengli(Suzhou) Industrial Park organized and carried outan education seminar on integrity and law popu-larization, which focused on explaining the mani-festation and prevention methods of illegal andcriminal acts such as position embezzlement andmisappropriation of funds, reminding the employ-ees to perform their duties and responsibilities andkeep the bottom line, and further strengthening theemployees’ sense of integrity.
Commendation of “Excellent Practice ofPerformance Explanation Meeting of 2022Annual Report of Listed Companies”
Addressing Climate ChangesEnvironmental ManagementPollutant ControlStrengthening Energy Conservationand Consumption Reduction
Water Resources ManagementCreating a Green Supply ChainAdvocating Low-carbon OfficeBiodiversity Conservation
/ 52/ 54/ 57/ 59/ 36/ 38/ 41/ 47
Energy Conservation andEmission Reduction, Environment
Protection with Persistence
3736
Greenhouse Gas Screening
In order to better manage the work related to climate change, the Com-pany sets up the Safety and Environment Protection Department to carryout greenhouse gas audit on a regular basis. Many subsidiaries employthird-party institutions to audit their respective carbon emissions andissue corresponding carbon verification reports to lay a solid foundationfor carbon emission data. At the same time, the Company establishes avisible management platform for greenhouse gas emission to visuallydisplay the emission reduction achievements, laying a solid foundationfor the calculation of product carbon footprint. During the reportingperiod, Hengke Advanced Materials completed the greenhouse gasemission verification in 2022 and successfully passed the ISO 14064greenhouse gas emission verification certification.
Note 1: Based on the production and operation characteristics, the greenhouse gas emission of the Company mainlycomes from the direct greenhouse gas emission caused by the combustion of fossil fuels and industrial production process(Scope I), and the indirect greenhouse gas emission caused by the net purchase of power and heat (Scope II).Note 2: The statistical scope of the above data includes Hengli Petrochemical Chemical, Hengli Petrochemical Refining,Hengli Petrochemical (Dalian), Kanghui New Material and Hengke Advanced Materials.
Addressing Climate Changes
Carbon Emission Management System
Under the guidance of the national Carbon Peaking and Carbon Neutrality policy, Hengli Petrochemical continues todevelop towards high-end, intelligent and green development, continuously carries out climate change management,integrates climate change factors into enterprise development, takes “national green factory” as the carrier, adoptsadvanced energy-saving technology, develops a series of emission reduction measures, reduces greenhouse gasemissions, and makes significant contributions to the global response to climate changes.
In the process of industrial production, the Company strictly complies with such laws and regulations as the Measures forthe Administration of Carbon Emissions Trading (Trial) and the Guidelines for Accounting and Reporting of Greenhouse GasEmission of Chinese Petrochemical Enterprises (Trial), has established the Carbon Emission Management System, theGreenhouse Gas Management Procedure and other systems to standardize the management of greenhouse gas emission,actively explores alternative paths for fossil energy such as coal, petroleum and natural gas, and is committed to reducingthe greenhouse gas emission. In addition, the Company continuously develops carbon emission training activities andfocuses on the cultivation of carbon management talents inside the enterprise, laying a talent foundation for the greenand low-carbon development of the enterprise.
Green Emission Reduction Measures of Hengli Petrochemical
Desalinationof sea water
Reclaimedwater reuse
Degradablenew materialsPhotovoltaicpower generation
Regenerated
fibre
CaseCarbon Emission TrainingThe Company carried out carbon emission accounting knowl-edge training, paid attention to training employees’ ability ofcarbon emission accounting in petrochemical industry, helpedemployees fully understand the principle, method and practicalapplication of carbon emission accounting, and constantlyimproved the carbon emission knowledge level of employees.
Carbon Emission Knowledge Training
Indicators
Greenhouse Gas Emission Status
2023
31,167,270.46tCO?e1,677,849.77tCO?e32,845,120.23tCO?e
139.89t
CO?e/RMB one million
Direct greenhouse gas emissions (scope I)Indirect greenhouse gas emissions (scope II)Total greenhouse gas emissionsGreenhouse gas emission intensity
Clean andefficientutilization ofcoal resources
CQC Carbon Emission Certificate ofHengke Advanced Materials
Environmental Management
Environmental Management System
The Company always adheres to the development concept of “green Hengli, ecological Hengli and harmonious Hengli”and strictly complies with the Environmental Protection Law and other relevant laws and regulations, formulates theEnvironmental Protection Management System, establishes the environmental protection organization structure which isgenerally responsible for environmental protection management, continuously improves the environmental managementlevel, and contributes to the environmental protection and ecological balance maintenance.
Honors：
Five factories of the Company have been awarded the title of “Green Factory”, including Hengli Petrochemical(Dalian), Hengli Petrochemical Refining, Hengli Chemical Fiber, Hengke Advanced Materials and Hengli Petro-chemical Chemical; Deli Chemical Fiber won the title of “Jiangsu Province Green Factory” and Kanghui NewMaterial won the title of “Liaoning Province Green Manufacturing Factory”.
Responsible for organizing theimplementation of environmentalprotection guidelines and policies,supervising environmentalmonitoring, etc.
Responsible for publicity andimplementation of environmentalprotection policy and environmentalprotection work
Hengli PetrochemicalChemical
Kanghui New
Material
Hengli PetrochemicalRefining
Hengli ChemicalFiber
Hengli Petrochemical
(Dalian)
Hengke AdvancedMaterials
Environmental, Social and Governance (ESG) Report 2023
3938
EnvironmentalProtectionOrganization Structure
Safety and EnvironmentalProtection Department
Each department
Responsible for environmentalmonitoring and monitoring data
statistics
Inspection Center
Responsible for implementing
the clean production relatedwork of the workshop
Each workshop
During the reporting period, the Company had no violation of laws and regulations in the field of environment,
Six subsidiaries including Hengli Petrochemical Chemical and Hengli Petrochemical Refining have passedISO 14001 environmental management system certification. and the investment in environmental protection was RMB.
232,970,700
4140
Assessment MechanismThe Company has formulated the Detailed Rules for Assessment of Environmental Protection Management, follows theprinciple that “the one causing greenhouse gas emissions is responsible for control and the one causing pollution isresponsible for treatment”, links the environmental protection performance with the performance of departments andindividuals, encourages and guides all employees to participate in the environmental protection action together anddeepen the environmental protection concept.Environmental Risk ManagementBeing Alert to Environmental RisksIn order to prevent environmental risks, the Company has formulated the Control Procedure for Identi?cation, Evaluationand Update of Environmental Factors to systematically identify environmental factors, and carry out project construction,acceptance and production in strict accordance with the “Three-Simultaneous” system and EIA approvalrequirements. The Company carries out special inspection on environmental protection every month, conducts regularenvironmental monitoring according to the pollutant discharge permit, regularly carries out potential hazardinvestigation, and timely rectifies the unfavorable potential environmental hazard.
During the reporting period, Hengli Petrochemical (Dalian) and Hengke Advanced Materials have completed the cleanerproduction audit; The implementation rate of “Environmental Impact Assessment” and “Three-Simultaneous”system of Hengli (Dalian Changxing Island) Industrial Park Project wasIntensified Emergency DrillThe Company regularly organizes environmental protection emergency training, continuously improves the organizationand coordination and self-rescue and mutual rescue ability of employees in case of emergency, so as to ensure therapid and orderly implementation of emergency actions in case of emergency environmental events. At the same time,the Company adheres to the principle of “prevention first, harm reduction”, and has developed the Emergency ResponsePlan for Environmental Emergencies. Through conducting regular drills and updating the plans, the Company improves itsemergency handling capacity, continuously improves the emergency response mechanism, and minimizes the impact ofenvironmental emergencies on the environment and society.
Case Special Training on Emergency Response Plan for Environmental EmergenciesOn December 19, 2023, the Company carried out specialtraining on emergency plan for environmental emergen-cies, focusing on explaining the specific operationprocess and precautions of Response Plan for Environmen-tal Emergencies, further improving the environmentalemergency response ability of employees and providingstrong guarantee for safe production and environmentalprotection in the park.
Special Training Site for Response Plan forEnvironmental Emergencies
Pollutant ControlPollution Control
The Company establishes a comprehensive and efficient pollution prevention and control management system to ensurethat the waste gas, waste water, waste and other pollutants generated during production and operation meet the nationaland local laws and regulations through regular monitoring and supervision and inspection mechanism. At the same time,the Company pays attention to the innovation of pollution control technology, and builds the first PTA residue recoverysystem in the world PTA industry-R2R device, realizing the ecological development of petrochemical industry.In order to ensure the professional knowledge and emergency response ability of the employees to prepare for pollutantdischarge, the Company regularly organizes and carries out pollutant discharge training and emergency drills tostrengthen the employees’ ability of understanding and executing environmental laws and regulations and ability ofquick response and disposal in case of emergency environmental events, so as to ensure the safety, environmentalprotection and high efficiency of production activities.
Emergency Handling Drill for Environmental EmergenciesPollutant Emission Training Activity
%
Key PerformanceKey Performance
4342
Waste Water ManagementHengli Petrochemical strictly follows the Law of the People’s Republic of China on the Prevention and Control of WaterPollution and other laws and regulations, and has formulated the Management Measures for the Treatment of WastewaterPollutants (Implementation Rules) to strengthen the wastewater management. The Company pays attention to therecycling of waste water, establishes comprehensive waste water process indicators and equipment operation records,regularly maintains and overhauls the waste water treatment facilities, and develops various water pollution preventionmeasures to reduce the discharge concentration of the waste water on the basis of meeting the standard dischargerequirements. During the reporting period, the wastewater of the Company and its subsidiaries were discharged up to thestandard after regular inspection.In 2023, the total wastewater discharge of the Company was 7,524,492.39 tons, and the wastewater discharge was
32.05 tons/RMB one million.
HengliPetrochemical (Dalian)
Hengli Petrochemical
Refining
HengliPetrochemical
Chemical
Hengli Chemical
Fiber
DeliChemical
Fiber
Amount of waste waterChemical oxygen demand
Ammonia nitrogenTotal phosphorusTotal nitrogen
Amount of waste waterChemical oxygen demandAmmonia nitrogenTotal phosphorus
Total nitrogen
Amount of waste waterChemical oxygen demand
Ammonia nitrogenTotal phosphorusTotal nitrogen
Amount of waste waterChemical oxygen demand
Amount of waste waterChemical oxygen demandAmmonia nitrogenTotal phosphorusTotal nitrogen
3,485,880.00
290.41
0.37
1.73
63.02
1,684,208.00
30.35
0.09
0.45
13.84
1,585,987.00
37.76
0.16
0.28
11.01
54,684.00
1.82
89,118.00
3.01
0.13
0.01
0.43
/
51.95%
0.33%
/
26.28%
/
12.78%
0.50%
/
19.52%
/
18.48%
0.49%
/
17.96%
41.43%
30.23%
77.26%
6.52%
13.54%
6.25%
71.67%
Company orsubsidiary name
Name of main pollutantsand characteristic pollutants
Total emissions 2023
(ton/year)
Proportion of total emissions in2023 to approved total emissions
CaseEcological Monitoring PoolHengli (Dalian Changxing Island) Industrial Park SewageTreatment Plant applies embedded sewage integratedtreatment technology, and the reuse rate of reclaimed waterexceeds 80%. The industrial production water in the plantarea passes through multiple purification processes and thewater quality treatment effect is inspected through biologicalindicators of aquatic plants and ornamental fish, so as torealize the safe discharge of wastewater.
Garden Factory of Changxing Island Industrial Park
CaseKanghui New Material-Wastewater Treatment and Reuse
After the high-concentration wastewater produced in theproduction process of the Company is treated by process-es such as hydrolysis and acidification, the wastewater ischanged into valuable water which is reused for production,irrigation of green plants, pavement washing and otherpurposes, which effectively relieves the treatment pressureof the third-party sewage treatment plant and reduces thefresh water quantity taken by the Company. The reuse rateof wastewater reaches 40%.
Wastewater Treatment and Reuse
Kanghui Dalian New Material
Hengke Advanced Materials
Kanghui New
Material
Susheng Thermal Power
Amount of waste waterChemical oxygen demand
Ammonia nitrogenTotal phosphorusTotal nitrogen
Amount of waste water
Amount of waste waterChemical oxygen demand
Ammonia nitrogenTotal phosphorus
Total nitrogen
Amount of waste waterChemical oxygen demand
Ammonia nitrogenTotal phosphorus
Total nitrogen
67,398.00
1.12
0.04
0.01
0.35
6,649.39512,674.00
5.94
0.04
0.38
7.27
37,894.00
0.72
0.00084
0.004
0.15
/
0.31%
3.31%
2.27%
3.72%
60.45%
78.59%
20.62%
1.37%
/
51.23
/
17.35%
0.65%
/
35.71%
Company orsubsidiary name
Name of main pollutantsand characteristic pollutants
Total emissions 2023
(ton/year)
Proportion of total emissions in2023 to approved total emissions
Waste Gas ManagementHengli Petrochemical strictly complies with the Law of the People’s Republic of China on the Prevention and Control ofAtmospheric Pollution and other laws and regulations, establishes the Waste Gas Emission Management System, the PollutantDischarge Management System and other relevant management systems, deeply promotes the management of airpollutants, actively carries out pollutant identification and monitoring, and adopted waste gas recovery technology toensure the emission of waste gas up to standard.The waste gas emission during the production and operation of the Company mainly comes from the organized emissionfrom the production process of the plant. The main pollutants include volatile organic compounds (VOCs) in the waste gasfrom the production process, and sulfur dioxide (SO
) and nitrogen oxide (NOx) in the flue gas of the gas-fired boiler.During the reporting period, the waste gas produced by the Company was treated by environmental protection facilitiesand discharged up to the standard.
Name of main pollutantsand characteristic pollutantsSulfur dioxideNitrogen oxideParticulate matterNon-methane total hydrocarbon
Sulfur dioxideNitrogen oxideParticulate matterNon-methane total hydrocarbon
Sulfur dioxideNitrogen oxideParticulate matterNon-methane total hydrocarbon
Sulfur dioxideNitrogen oxideParticulate matterNon-methane total hydrocarbon
Sulfur dioxideNitrogen oxideParticulate matterNon-methane total hydrocarbon
217.18
445.71
19.75
209.67
1,189.752,394.02
117.59
103.59
55.88
434.71
9.18
38.75
5.34
31.18
1.65
0.85
0.48
4.01
0.39
0.87
45.49%
65.35%
6.18%
23.90%
48.57%
47.02%
11.19%
3.72%
47.97%
44.61%
6.16%
5.20%
25.64%
53.04%
5.37%
1.82%
3.64%
17.66%
18.48%
45.31%
CaseHengli Petrochemical Refining - Carbon Dioxide Recycling Unit
Hengli Petrochemical Refining has built a carbon dioxide recyclingunit and adopted the patent technology of “carbon dioxide purifi-cation unit with adsorption distillation technology” of DalianUniversity of Technology. The core of this technology is to developa variety of solid adsorbents, which can adsorb and remove impuri-ties such as sulfide, nitrogen oxide, light hydrocarbon, aromatichydrocarbon and organic oxide in various high-concentration gassources. Combined with the heat pump rectification technology, thecarbon dioxide can be purified to above 99.99%, and the productioncapacity is 200,000 tons/year, making substantial contribution tothe green development of the Company.
Carbon Dioxide Recycling Unit
Sulfur dioxideNitrogen oxideParticulate matter
VOCsNon-methane total hydrocarbon
Sulfur dioxideNitrogen oxideParticulate matterSulfur dioxideNitrogen oxideParticulate matter
VOCsNitrogen oxideParticulate matter
VOCs
2.68
20.28
6.43
0.82
3.12
46.34
133.17
7.03
1.93
20.06
1.78
22.46
0.18
0.04
3.84%
7.74%
18.40%
2.84%
/
10.67%
15.33%
4.08%
9.54%
22.36%
3.52%
13.15%
0.00%
52.94%
0.80%
Environmental, Social and Governance (ESG) Report 2023
4544
HengliPetrochemical
(Dalian)
Hengli Petrochemical Refining
HengliPetrochemicalChemicalHengli Chemical
Fiber
DeliChemical
Fiber
Kanghui Dalian New Material
Hengke Advanced Materials
Kanghui New Material
Susheng ThermalPowerCompany orsubsidiary name
Total emissions 2023 (ton/year)
Proportion of total emissions in2023 to approved total emissions
Name of main pollutantsand characteristic pollutantsCompany orsubsidiary name
Total emissions 2023 (ton/year)
Proportion of total emissions in2023 to approved total emissions
Hengke Advanced MaterialsKanghui New MaterialHengli Petrochemical Chemical
Hengli Petrochemical RefiningHengli Petrochemical (Dalian)
Hengli Petrochemical adheres to the concept of green development,has established relevant management systems suchas Energy Management System, Management System of Energy Objectives, Indicators and Management Schemes, establishescorresponding energy management departments, and continuously standardizes the systematic and scientific energymanagement. During the reporting period, 5 major subsidiaries including Hengke Advanced Materials and Kanghui NewMaterial have passed the certification of energy management system.
Energy Management System
Strengthening Energy Conservation andConsumption Reduction
Output of general waste2,433,246
tons
tons
Disposal amount of general waste2,433,359
tons
tonsOutput of hazardous waste29,875
Disposal amount of hazardous waste29,906
Waste Management
The Company attaches great importance to the environmental management of solid wastes, strictly follows the Law of thePeople’s Republic of China on Prevention and Control of Environmental Pollution by Solid Wastes and other provisions,resolutely prevents the production, sales and use links from causing environmental pollution or secondary pollution, andentrusts the generated hazardous solid wastes to units with corresponding business license qualifications forcomprehensive recovery. For industrial solid waste storage sites that have been terminated from use, the Companycarries out ecological restoration work in strict accordance with environmental protection regulations.
Noise Management
The Company continues to promote the prevention and control of noise pollution in the whole process of production andoperation, focusing on optimizing the layout of production facilities and giving priority to the selection of low-noiseprocesses and equipment. The company regularly entrusts a third-party organization and the Quality ControlDepartment of the Company to carry out noise monitoring at the factory boundary, and setsupmonitoring pointsrespectively in the south, east, north and west of the factory. During the reporting period, the compliance rate of noisemonitoring of the Company was 100%.
Waste Discharge
Environmental, Social and Governance (ESG) Report 2023
4746
Smart Energy Management
The Company actively explores the use of Internet of Things and mobile Internet technology, builds smart energy servicesystem, carries out real-time and accurate monitoring and management of various energy consumption, and optimizesenergy management measures in time through continuous data analysis.
CaseHengke Advanced Materials-Smart Energy Management PlatformHengke Advanced Materials implementsthe energy consumption monitoring systemproject, monitors and analyzes the energyconsumption data in real time, establishesthe early warning procedure, ensures thereasonable utilization of energy, realizes thegoal of energy conservation and emissionreduction, and lays a solid foundation for thegreen development of the Company.
Hengke Advanced Materials Smart Energy Management Platform
Effect of Energy Saving and Consumption ReductionThe Company attaches great importance to energy-saving technical transformation. On the one hand, by introducingadvanced energy-saving technology and equipment, the Company continuously optimizes the production process andreduces energy consumption; On the other hand, through the formulation of the Administrative Measures for Awards ofTechnical Transformation Projects for Energy Conservation and Consumption Reduction, the innovative and beneficialenergy-saving and consumption-reducing technical transformation projects are rewarded, and the green developmentof the enterprise is promoted. A total of 12 excellent technical transformation projects were reviewed in 2023, withremarkable energy-saving benefits.
Case
Hengke Advanced Materials - Small-flow High-precision Control Project Won theFirst Prize in Technical Transformation Project Review
The integrated small-flow control system newly adopted byHengke Advanced Materials includes mass flow meter,control solenoid valve and control unit. Compared with thetraditional method, the innovative scheme is simple andconvenient to install, saves space, and realizes digital,real-time and accurate energy regulation through theModbus communication connection of the built-in control unitand the DCS. In addition, the system replaces the functions ofthe past three instruments with a single instrument, greatlysimplifies the cable arrangement, reduces the cables frommultiple to one network cable, improves the equipmentefficiency and remarkably reduces the resource consumption.
Realistic View of Small-flow High-precision Control Project after Transformation
Subsidiaries of the Company effectively reduce energy consumption by adopting advanced technology and implementingenergy-saving measures. The comprehensive energy consumption per unit productis superior to the industry standard.Hengli Petrochemical Chemical, Hengli Petrochemical (Dalian) and Hengli Petrochemical Refining respectively won the titleof “Energy Efficiency Leader” in 2022. These honors further consolidate the Company’s leadership position in thepetrochemical industry and set a model for the industry’s pursuit of more energy efficient and environmentally friendlydevelopment.
Energy Consumption
7,914,00030,960.87
206.86
6,083,523,1004,316,793,900
Thermal coal (ton)Natural gas (ten thousand m
)Gasoline (ton)Electric power (kWh) (consumption)Electric power (kWh) (procurement)
st in the ethylene industry
st in the paraxylene industry
kgoe/tkgoe/t* factorEnergy consumption per unitproduct:
Energy consumption per unitproduct
nd in crude oil processing industry
6.89236.67
st in the purified terephthalic acid industryEnergy consumption per unit product
533.73
Energy consumption per unit product:
kgoe/t
28.46
kgoe/t
5150
During the reporting period, the Company’s renewable energy consumption was aboutof standard coal
Clean Energy ApplicationIn order to respond to the national clean energy policy, the Company widely adopts clean energy in operation. Throughthe construction of photovoltaic and other clean energy projects, the proportion of clean energy is increased, the energyutilization structure is continuously optimized, and the green development of the Company is facilitated.
Photovoltaic power generation
126,574,579
kWh
Biogas power generation99,744kWh
Wind power
2,811,000
kWh
Other clean energy use
92,141,280kWh
Biomass fuel
162,646
tons ofstandard coal
Clean Energy Consumption
CaseKanghui New Material - Methane Power Generation
The Company’s sewage treatment station can generatebiogas during wastewater treatment. In order to make reason-able use of resources, the Company uses the methane powergeneration system to collect the methane generated by theanaerobic tower, and then deliver it to the methane generatorfor power generation. The generated electricity is supplied tothe fan and water pump of the sewage station for use, effec-tively eliminating the direct discharge of methane, saving about26,000kwh of electricity per month, and achieving the purposeof saving resources.Biogas Power Generation Unit
Construction of Solar Photovoltaic Power
Generation on the Roof of the Plant
CaseKanghui New Material - Steam Utilization and Treatment of Condensate Water TankIn order to improve the energy use efficiency, KanghuiNew Material vigorously carries out the steam heatexchange project required for the rectifying tower ofTHF recovery unit. In this project, a set of plateexchanger is added to the recovery unit to exchangeheat between raw materials and steam condensatewater, so that the waste heat of hot water in thecondensate water tank can be effectively utilized, andthe waste of hot water resources is reduced. At thesame time, it also provides heating for V/W line barrelroom, reduces the use of public heating steam, andshows the Company’s innovative ability in energysaving, emission reduction and resource recycling.
Waste Heat Utilization of Condensate Water of S Line
Propane Recycling Unit
189,883.91
and the converted annual reduction in greenhouse gas emissions was1,273,102.86tCO
e
tons
CaseHengli Petrochemical Chemical - Propane Recycling
In order to reduce the material loss, Hengli Chemicalhas recycled the propane discharged from thelow-pressure flare of the polypropylene Unipol unit.Now, this material is integrated into the exhaust gasrecovery unit of the chemical polypropylene JPP unit,and after treatment, it is uniformly transported to theethylene unit. After the project is put into use, 150kg/h ofpropane can be recovered, about 1,260 tons of propaneper year, which can save 1,979.46 tons of standardcoal.
CasePhotovoltaic Power Generation Project
The solar photovoltaic power generation project constructedon the roof of the new plant of Kanghui New Material adoptsthe grid connection mode of “self-generation and self-useand surplus power on-grid”, and the power generated ismainly used by enterprises. It can save 11,646.67 tons ofstandard coal per year, reduce the emission of 31,083.24tons of carbon dioxide, 236.75 tons of sulfur dioxide and 80.2tons of nitrogen oxides, and reduce 7,919.73 tons of dustgenerated by thermal power generation.During the reporting period, all five phases of the PV project of Hengke Advanced Materials were put intooperation, with a total installed capacity of about 76.5 MW. The annual PV power generation was 103,967,180kWh and the carbon dioxide emission was reduced by 86,500.69 tons, with a year-on-year increase of 5.84%compared with the emission reduction in 2022.
Water Resources ManagementWater Resources Management System
Hengli Petrochemical strictly complies with the Water Law of the People’s Republic of China, the Law of the People’s Republicof China on the Prevention and Control of Water Pollution and other laws and regulations, establishes the Water ManagementSystem to standardize water resource management, establishes the Water-saving Management Department, regularlychecks water supply facilities, strengthens equipment maintenance and repair, prevents leakage, adopts advancedwater-saving technology and process to reduce water resource consumption, improves water resource utilization rateand ensures normal production and operation of the Company.
Water Saving MeasuresIn order to improve the use efficiency of water resources, the Company adopts a series of water-saving measures andrecycling means, and devotes itself to realizing the effective management and sustainable utilization of water resourcesin the operation and production process.
Water Resources Management
CaseClosed Circulating Water Process
Closed Circulating Water Station No.1
A closed circulating water station is set up inHengli (Dalian Changxing Island) Industrial Park.The total amount of circulating water is about390,000t/h, and the circulating water of largesurface cooler of the unit is about 440,000t/h. Theseawater closed cooling system is adopted toreplace the traditional open cooling tower, saving9,900t/h of production water. The world’s firstnew mode of “seawater utilization” initiated byHengli Petrochemical has opened up a new pathof circulating water cooling of “no consumption offresh water and production of fresh water” forlarge-scale petrochemical industry enterprisesalong the sea.
Case Seawater Desalination Treatment
Seawater Desalination Plant
Hengli (Dalian Changxing Island) Industrial Parkhas introduced two high-efficiency seawaterdesalination plants to produce 4,166t/h of waterby using the waste heat of the plants, with anannual production of 35 million tons of freshwater, which has improved the energy utilizationefficiency, realized the effective utilization ofseawater resources, and taken an importantstep in sustainable development and environ-mental protection.
14,239.70
279.91
13,897.71
62.08
71,964.2665,9523,594.45
80.38
Note 1: Reclaimed water reuse rate = (water treatment capacity of sewage treatment plant - discharge capacity outsidethe sewage treatment plant)/water treatment capacity of sewage treatment plant * 100%Note 2: The first 7 items of data include Hengli Petrochemical (Dalian), Hengli Petrochemical Refining, HengliPetrochemical Chemical, Kanghui New Material, Hengli Chemical Fiber, Susheng Thermal Power, Hengke AdvancedMaterials, Jiangsu Xuanda, Deli Chemical Fiber and Hengli Petrochemical (Huizhou).
Environmental, Social and Governance (ESG) Report 2023
5352
st in the ethylene industry
0.43
Water intake per unit product: m
/t
99.87%
Water recycling rate
st in the oil refining industry
0.27
Water intake per unit product:m
/t
98.79%
Water recycling rate
Total fresh water intake (ten thousand tons)Municipal water consumption (ten thousand tons)Surface water intake (ten thousand tons)Groundwater intake (ten thousand tons)
Total water consumption (ten thousand tons)Circulating water consumption/recycling water consumption
(ten thousand tons)Annual water saving of reclaimed water reuse equipment
(ten thousand tons)Reclaimed water reuse rate (%)
5554
CaseHengli Petrochemical (Dalian) New Material Tech-nology Co., Ltd. has two sets of 200,000 tons/yearCO
refining units in its 1.6 million tons/yearhigh-performance resin and new material project,which is used to recover the CO
byproduct fromglycol unit, and through high-efficiency conversion,the byproduct can be made into high-end chemicalproducts such as carbonate and polycarbonate,which can be used as electrolyte raw materials ofgreen and environment-friendly new energybatteries, realizing the effective reuse of CO
resources, demonstrating the active efforts of theCompany in sustainable development.
Creating a Green Supply Chain
Green Products
Green Supply System
During the reporting period, RMBwas invested in the use of packaging materials
175,812.69
Kanghui New MaterialJiangsu XuandaHengke Advanced Materials
Case
Hengke Advanced Materials - 150,000 Tons/Year Super Simulation DifferentialEnvironment-friendly Fiber ProjectThe environment-friendly fiber produced by the150,000 tons/year super simulation differentialenvironment-friendly fiber project realizes theefficient recycling of resources, greatly reducesthe discharge of urban solid waste, promotes theeconomic mode of circular development of indus-trial chain, and continuously promotes the innova-tion and development of green manufacturingtechnology level of the Company while improvingthe differentiation rate of enterprise products.
Differential Environment-friendly Fiber
Key PerformanceKey PerformanceThe Company comprehensively considers the environ-mental protection factors in the links of product design,procurement, production and packaging, establishes aglobal recycling standard (GRS) system, actively carriesout green procurement, always pays attention to thequality level of products provided by suppliers, whetherthe components are harmful, the recyclability of produc-tion materials and other information, and incorporates them into the scope of supplier cooperation and investigation,constantly promotes the use of recycled materials in products, and reduces or eliminates the hazards caused byproduction. By the end of the reporting period, Kanghui New Material, Hengke Advanced Materials and other subsid-iaries have passed GRS certification.
By product CO
Is Used to PrepareElectrolyte Raw Materials of NewEnergy Batteries
Case
In July 2023, Hengli Chemical Fiber launched PSYbio-based fiber. This product is different from thefiber produced with non-renewable petrochemicalresources such as coal and petroleum. Up to 37%of the raw materials are from plants. Compared withthe nylon polymer based on fossil raw materials, theenergy consumption in the production process isreduced by 30%, and the carbon emission isreduced by 63%, which greatly reduces the carbonemission in the whole life cycle of the fiber andeffectively reduces the carbon footprint.
Hengli Chemical Fiber-PSYBio-based Fiber
Green Packaging
CaseKanghui New Material - Package Auxiliary Material Lightweight SchemeAccording to the practical experience, the Company lightens the packaging materials of polyester filmproducts, such as reducing the wall thickness of paper tube, the thickness of baffle plate, the thickness ofbubble film roll and bubble film, optimizing the tray structure, etc., effectively reducing the consumption ofpackaging materials.
Case Kanghui New Material - Reuse of Packaging MaterialsThe packaging materials of PET polyester chipsand PBT engineering plastic products producedby the Company have the characteristics ofrecycling. In view of the short transportationdistance within the Company, the used pack-aging bags can still meet the packaging stan-dards of PET products; For PET productsshipped in foreign trade containers, the bagmaterial packaging bags can also meet therequirement of reuse after use. The Companyadheres to the principle of efficient utilizationand recycles these packaging materials, whichnot only reduces the cost and improves theefficiency, but also contributes to the environ-mental protection.
PET Polyester Chips and PBT Engineering
Plastic Product Packaging
Advocating Low-carbon Office
The Company highly advocates the concept of green office, and holds a series of environmental protection publicity andeducation activities on the occasion of the annual World Environment Day (June 5), and guides employees to developenvironmental protection habits such as water and electricity saving and garbage classification in the daily operationprocess, and strives to create a green office atmosphere of “low carbon for everyone”. During the reporting period, theCompany conducted 325 environmental protection training sessions, which lasted 10,877.6 hours.Green Office Initiative
Save paper, advocatedouble-sided printing,advocate paperless office,advocate HENGLINKapproval, and reduce thegeneration of unnecessaryoffice documents.
The lights, computers andother equipment in theoffice shall be closed whenthe office personnel leavethe office. Before leavingthe office, check whetherthere is any missingequipment that has notbeen closed.
Waste and used cartridgesshall be disposed of in acentralized manneraccording to theCompany’s requirements.
Carry out garbageclassification publicity foroffice garbage, andadvocate to do a good jobof garbage classificationaccording to the standards.
The Company is always committed to creating a beautiful and healthy working environment for its employees,while actively fulfilling its responsibility to protect the environment. Therefore, we continuously optimize thegreening environment of the plant area and the office area. Through scientific and reasonable greening planningand careful maintenance and management, the greening area is increased year by year and the greening effectis increasingly remarkable.
Greening of Each Industrial Park of the Company
IndicatorGreen area(ten thousand m
)Proportion of green
area in industrial
park area (%)
179.29
16.69
22.80
21.55
35.64
21.47
105.60
25.35
3.53
11.70
4.05
10.00
Hengli (DalianChangxing Island)
Industrial Park
Hengli (Yingkou)
Industrial Park
Hengli (Suzhou)Industrial Park
Hengli (Nantong)
Industrial Park
Hengli (Suqian)Industrial Park
Hengli (Huizhou)Industrial Park
Environmental, Social and Governance (ESG) Report 2023
5756
CaseEnvironmental Protection TrainingThe Company carries out the activities of theJune 5 Environmental Day and the NationalEnergy Conservation Publicity Week, cover-ing the employees of the whole Company byusing water-saving scheme, training PPT,test papers, publicity videos, publicity postersand other modes and continuously improvingthe employees’ awareness of saving.
Kanghui New Material Office Area
Ecological Environment RestorationThe Company pays close attention to the health and restoration of the ecosystem, actively participates in variousactivities aimed at promoting the restoration of the ecosystem, and carries out the firm commitment to environmentalprotection with practical actions.
Check of Potential Ecological HazardsIn order to reduce the unnecessary negative impact on the ecological environment caused by the production andoperation activities, the Company has formulated the Responsibility System for the Investigation and Treatment ofPotential Soil Hazards, and regularly carries out self-monitoring of soil and groundwater to prevent possible pollutionaccidents and ensure that all environmental hazard factors are timely and effectively controlled, so as to ensure thesustainable development of the ecological environment.
Case
The Company is committed to completing greening of the green hill restoration and treatment phase Iproject on the south side of Dalian Changxing Island Industrial Park with a total area of 62.65 hectareswithin five years. The project not only helps to protect biodiversity, but also improves the living environmentof local residents through large-scale vegetation restoration, providing solid ecological environmentsupport for enterprises and social and economic development in the region.
Green Hill Restoration and Treatment Phase I Project
5958
Environmental, Social and Governance (ESG) Report 2023
Biodiversity Conservation
Activities of June 5 Environmental Day andNational Energy Conservation Publicity Week
Green Hill Restoration and Treatment Project on the South Side of Hengli(Dalian Changxing Island) Industrial Park
Improving R&D SystemEnabling Innovation AchievementsPromoting the Development of Digital IntelligenceProtecting Intellectual Property RightsGuarding Information Security
/ 62/ 64/ 67/ 69/ 70
Driven by Innovation,Pursuing Stable Development
The Company has set up an efficient management structure to ensure the orderly development of various R&D andmanagement work. At the same time, it has set up annual objectives and long-term planning to define the new productdevelopment planning and future R&D direction of the Company, constantly improve its own R&D strength and innovationcapacity, and inject strong power for the long-term development of the Company.
R&D Organization Structure
Hengli Petrochemical always adheres to scientific and technological innovation as the core driving force of enterprisedevelopment, attaches great importance to scientific and technological innovation, continuously strengthens themanagement of R&D system, and establishes relevant management systems such as New Product DevelopmentManagement Procedure, New Material R&D Center Laboratory Management System, Independent Innovation RewardManagement Measures, etc., to ensure the standardization of new product development process and scientific laboratorymanagement, improve the working efficiency and innovation ability of R&D team, and provide a solid institutionalguarantee for the R&D, test, promotion and application of new products of the Company.
R&D System Guarantee
Improving R&D System
The Company pays attention to the R&D team building, and has multi-dimensional and multi-disciplinary senior talentscovering material engineering, material chemistry, electrical engineering, analytical chemistry, polymer materials, etc.The Company has established “Hengli International R&D Center” and “Hengli Industry-University-Research Base”in Frankfurt, Germany, Osaka, Japan and other places, and employs senior experts from Germany, Japan, South Koreaand other places to form an international R&D team, which provides powerful guarantee for the research anddevelopment of high-end differentiated products.
R&D Team Building
R&D Center Director
R&D EngineerR&D Engineer
Schematic Diagram of R&D Organization Structure
TechnicianTechnician
R&D Center Manager
Educational background structure of scientific research team
Ph.D.:22 PersonsMaster：147 PersonsBachelor degree or below：3,094 Persons
60 years and above：28 Persons50 to 60 years old (including 50 years old andexcluding 60 years old)：164 Persons40-50 years old (including 40 years oldand excluding 50 years old)：427Persons30 to 40 years old (exclusive)：1,484 PersonsBelow 30 years old (exclusive) ：1,160 Persons
Age structure of scientific
research teamSummary 2023
Persons
3,094Persons
Persons
Persons
Persons
Persons
1,484Persons
1.160
Persons
Total：3,263 Persons
Total：3,263 Persons
202320232023
R&D investment of the Company
13.71
RMB million
Increase over the previous year
RMB million
Year-on-year growth
15.7
%
6362
Environmental, Social and Governance (ESG) Report 2023
Hengli Petrochemical takes a firm step on the road of scientific and technological innovation, and actively undertakesmajor science and technology projects at national level, provincial level and industry associations. Its technicalachievements have won awards for many times. During the reporting period, “high-uniformity super-soft polyesterfiber” was successfully listed in the 30th batch of key application promotion catalogue of Jiangsu Province; Deli ChemicalFiber was awarded as Jiangsu Province Enterprise R&D Management System Standard Implementation Qualified Unit;4 main subsidiaries including Hengli Chemical Fiber and Deli Chemical Fiber won the national title of “High-techEnterprise”.
R&D Honors
Hengli Petrochemical attaches great importance to technical innovation and product upgrading, and establishes a solidlong-term industry-university-research cooperation relationship with many top universities at home and abroad, makingfull use of the scientific research resources of colleges and universities to obtain strong theoretical and technical support.After that, the Company carries out in-depth independent research and development, establishes a high-level researchand development platform, promotes the technical progress and innovation capability of the Company, and injects newvitality into the sustainable development of the industry.
Industry-University-Research Cooperation
Enabling Innovation Achievements
Hengli Chemical FiberDeli Chemical Fiber
CaseSelf-developed Biodegradable Plastic Bag
Biodegradable Film
The Company adopts the independently developed process technology and formula to produce PBS,PBAT, PBSA, PBST and other products according to the market demand. No toxic or harmful substancesare added in the production process, and the products are applicable to the application in the food-gradefield. The products belong to thermoplastic fully biodegradable polyester plastic, has excellentbiodegradability, can be completely decomposed by microorganisms within 180 days under the conditionof composting, and makes positive contributions to protecting the ecological environment of the earth andreducing plastic pollution.
CaseKanghui New Material Successfully Developed 3.9 Micron Ultra-thin Carbon Tape Base FilmThe R&D team of Kanghui New Material has overcomemany challenges in the production process throughmany tests and process optimization, and finally madea major breakthrough in the film production technology,and successfully developed and produced the 3.9micron ultra-thin carbon tape base film in batch, whichwas highly recognized by customers. The novel film hasthe advantages of uniform thickness, high flatness, highstrength and the like, effectively solves a plurality of useproblems of the traditional carbon belt, can be widelyapplied to a plurality of fields such as internet of things,industrial automation, medical treatment and the like, isexpected to gradually replace the existing 4.5 microncarbon tape base film market, and further promotesenergy conservation, environmental protection andsustainable development of the carbon tape industry.
CasePilot Scale Technology Development Project for Synthetic Rubber and Elastomers
The R&D team of Hengli Petrochemical Chemical and the research team of Dalian University of Technologyhave successfully completed the synthesis and development of some resin-grade rubber products. As ofnow, the transfer, installation and commissioning of the pilot equipment have been completed for thesynthetic rubber and elastomer pilot technology development project, and the experimental process hasbeen established.
3.9 Micron Ultra-thin Carbon
Tape Base Film Product
6564
6766
Environmental, Social and Governance (ESG) Report 2023
Facilitating the Development of the IndustryThe Company actively participates in the formulation of national, industrial and group standards, discusses with industrycolleagues, and makes positive contributions to the improvement of technical level of the industry. At the same time, theCompany actively participates in various exhibitions, industry seminars and other activities, exchanges ideas with theindustry elite, shares experience, and constantly absorbs new knowledge and new technologies to maintain theinnovation vitality of the enterprise.
Hengli Petrochemical adheres to the deep integration of industrialization and informatization, and makes every effort tocreate an intelligent ecosystem of the whole industrial chain. By taking “intelligent interconnection” as an importantentry point for industrial upgrading and transformation, Hengli Petrochemical independently researches and developsintelligent systems, and constantly promotes the whole-process intelligent manufacturing level of the Company. Duringthe reporting period, several subsidiaries of the Company won various smart manufacturing awards, demonstrating theCompany’s outstanding strength in the field of smart manufacturing and injecting strong impetus for the Company’sfuture development.
润滑油水环真空泵改造项目
The 2nd Global Film Capacitor Industry TechnologySeminar was held in Zhuhai from May 18 to 19, 2023,attracting more than 300 industry experts. KanghuiNew Material has demonstrated the application ofPBT engineering plastics and modified products inthe capacitor industry, further promoting the techno-logical development and industrial innovation of filmcapacitors, and enhancing China’s competitive-ness in the global market.
S/NCompanyStandard Type
Polyester pre-oriented yarn
Colored polyester pre-oriented yarn
Polyester film for OCA release filmPolyester film for window filmPolyester film for MLCC release film
Polyester film for polarizer protective filmOn-line coating type polyester release filmPolyester film for photoresist dry filmComposite copper foil for lithium ion battery
Standard NameIndustryIndustryIndustryIndustryGroupGroupGroupGroupGroup
Group
Group
The Company’s participation in standard formulation in 2023 is as follows
Promoting the Development of Digital Intelligence
Kanghui New
Material
HengkeAdvancedMaterials
Jiangsu
Xuanda
Kanghui New
Material
Kanghui New
Material
Kanghui New
Material
Kanghui New
MaterialKanghui New
Material
Kanghui New
Material
Kanghui New
Material
Jiangsu
Xuanda
HengkeAdvanced
Materials
Polybutylene terephthalate/polyethylene terephthalate
(PBT/PET) composite elastic yarnPolytrimethylene terephthalate/polyethyleneterephthalate (PTT/PET) composite pre-oriented yarn
Case
Kanghui New Material Was Invited to Participate in the 2nd Global Film Capacitor IndustryTechnology Seminar and VDE Technical Standard Seminar
Kanghui New Material Demonstrated the Application of PBTEngineering Plastics and Modified Products in Capacitor Industry
Kanghui DalianNew Material
Liaoning ProvinceIntelligent Factory
Jiangsu ProvinceIntelligent Factory
Jiangsu ProvinceIntelligentManufacturingFactory
AAA Integration ofInformatization andIndustrializationManagement SystemCertificate
Liaoning ProvinceDigital Workshop
IntelligentManufacturingExcellent Scene
HengkeAdvancedMaterials
HengkeAdvancedMaterials
HengkeAdvancedMaterials
HengliChemical
Fiber
6968
Environmental, Social and Governance (ESG) Report 2023
润滑油水环真空泵改造项目
In the oil refining sector, Hengli Petrochemical adopts interna-tional state-of-the-art processes and equipment, and com-bines the domestic leading automation and monitoring systemto ensure the safety, energy saving and high efficiency of theproduction environment. In the midstream and downstream ofthe industrial chain, many intelligent production workshopshave been built in the new polyester material and textile sectorto realize full-process automatic production. The Companyrealizes energy saving in the whole process through the coop-eration of upstream and downstream processes, deeplyintegrates digitalization and intelligence, and promotes thehigh-quality development of the Company.Central Control Room
润滑油水环真空泵改造项目
润滑油水环真空泵改造项目
HENGLINK Industrial Internet Platform
The Company attaches great importance to intellectual property protection, runs intellectual property protection throughthe whole process of product research and development, has established the Management System for Scienti?c andTechnological Innovation and other systems, standardizes the management process of scientific and technologicalprojects and patents, strengthens the intellectual property protection in all aspects, and ensures the effective protectionand application of enterprise innovation achievements. During the reporting period, several subsidiaries of the Companyhave obtained the intellectual property management system certificate, among which, Kanghui New Material and HengkeAdvanced Materials have won the National Intellectual Property Advantage Enterprise, Hengli Chemical Fiber has wonthe National Patent Excellence Award, and Hengke Advanced Materials has won the Excellent Patent-Silver Award ofChina National Textile And Apparel Council.
Protecting Intellectual Property Rights
Key PerformanceKey PerformanceKey Performance
In 2023,the Company has obtained new patents
patentssoftware works
By the end of 2023,the Company has accumulated
1,331
trademarks1,245
Case Intelligent Upgrade of the Whole Industrial Chain
Case
Hengke Advanced Materials - Significant Achievements in the Integration ofIndustrialization and Informatization
Case HENGLINK Digital Intelligent Platform
Hengke Advanced Materials continuously strengthens the informati-zation construction and comprehensively promotes the construction ofintelligent factories. On the one hand, it introduces intelligent manufac-turing equipment to improve the product quality and productionefficiency through the application and integration of automation, indus-trialization, informatization and digitization; On the other hand, the ERPinformatization system project is introduced and implemented to givefull play to the important role of information system in data transmission,analysis and scientific decision-making. Hengke Advanced Materialshas made remarkable achievements in promoting the in-depthintegration of industrialization and informatization, and has obtainedAAA-level Integration of Informatization and Industrialization Manage-ment System Certificate.
Hengli Petrochemical establishes the HENGLINK informationplatform, realizes the centralized management of corebusiness processes such as ERP (Enterprise ResourcePlanning), MES (Manufacturing Execution System) andWMS (Warehouse Management System), promotesreal-time data sharing and collaborative work of businessprocesses, and significantly improves the R&D strength,intelligent manufacturing capacity and quality managementefficiency of the factory.
Integration of Informatization andIndustrialization Management System
Certificate
Hengli Chemical Fiber China Patent
Excellence Award Certificate
Hengke Advanced MaterialsIntellectual Property Management
System Certification
Excellent Patent-Silver Award ofChina National Textile And Apparel
Council
Guarding Information Security
Information Security ManagementThe Company has formulated the Information Security Management System and other systems to strictly manage andcontrol the equipment, facilities, software systems and other behaviors connected with the information system of theCompany through the information security guarantee mechanism to ensure that the information security of theenterprise is protected. At the same time, each subsidiary of the Company establishes an information securitymanagement department to be fully responsible for the information security management, so as to realize the credible,controllable and manageable information security.
Information Security Risk Identification and AssessmentThe Company adheres to the general policy of “safety first, prevention first, management and technology equally, andcomprehensive prevention”. Through information security risk identification and assessment, the Company determinesthe high and low priority of risks, and establishes corresponding risk control measures to mitigate or eliminate thehazards and impacts of possible information security events. At the same time, the Company has formulated the NetworkSecurity Emergency Response Plan and other systems to standardize the security incident handling procedures of theCompany’s information system, conducts plan drills regularly, and improves the ability and level of preventing andcontrolling information security emergencies.
Information Security Management MeasuresThe Company formulates a series of management measures around physical security, network security and otheraspects to continuously improve the protection level of network and data security.
Information Security Working GroupEmergency Response Working Group
Information Security Organization Structure
Responsible for incoming information security
and privacy protection
Dealing with and analyzing information
security incidents
Information Security Leading Group
Key PerformanceKey PerformanceKey Performance
Information Security Control Measures
Physical security
control
Data security
control
Personnel safetymanagementand control
Network security
control
Regular machine roominspection, maintenance ofhardware equipment, etc.
Automatic backup, dataencryption, etc. on aregular basis
Setting up networkfirewall and gatewayequipment, etc.
Carrying out informationsecurity training andestablishing anti-virusawareness
During the reporting period, the completion rate of safe construction was100%
Maintenance rate ofsoftware and hardware was100%Hardware safety rate was100%
There were handled
system problems
9,313
training sessions were completed information security education and
Quality Assurance FirstCustomer Service ManagementResponsible Procurement Practice
/ 74/ 76/ 78
Collaborative Empowerment
and Joint Progress with
Persistence
Quality Assurance FirstProduct Quality SystemThe Company strictly complies with the Law of the People’s Republic of China on Product Quality and other laws andregulations, establishes a series of product quality management systems such as Product Standardization ManagementSystem, establishes and improves the quality management system, sets up the Dispatching Technology Department totake charge of the product standardization management, and the Inspection Center carries out inspection in strictaccordance with the product standards, so as to realize the full-cycle high quality management of the production processquality management, product warehousing, delivery and packaging. During the reporting period, 7 subsidiaries includingKanghui New Material and Hengli Petrochemical Chemical have passed ISO 9001 quality management systemcertification.
Product Quality ControlThe Company always puts the quality in the first place, actively cooperates with the product spot check, and establishesthe internal quality standard, divides the polyester drawn yarn (FDY) and the polyester pre-oriented yarn (POY) intothree grades: AA, A and B, and accurately evaluates the product quality. During the reporting period, the qualified rate ofthe Company’s products was 100%.In order to strengthen quality risk management, the Company has established the Control Procedure for Handling Risks andOpportunities to guide the implementation of quality risk management and avoid quality risk.
Quality Management System Certificates of Some Subsidiaries
IdentificationAssessmentDevelopment of
measures
Critical StepsContent of Measures
Quality Risk Control Process
In 2023, the Company carried out post skill improvement, quality management and other training sessions.Through targeted training and actual operation drills, the occurrence of repeated defects was reduced, andthe product quality and customer satisfaction were improved.
Post Skill Improvement TrainingQuality Management Training
The Company continues to explore digital quality management, and its subsidiary Kanghui New Material hasestablished a digital polyester film quality management system to identify and solve product quality problemsmore accurately and quickly and improve product quality and production efficiency.The Company constantly enhances the quality awareness of all employees, details the quality control to each post andevery link, and lays a solid foundation for the high-quality development of the Company.
Product Recall ManagementThe Company identifies and disposesofnon-conforming products in strict accordance with the Non-conforming ProductControl Management System and other internal systems, conducts product recall simulation drills regularly, evaluates andverifies the effectiveness of the recall procedures, and protects the product quality. During the reporting period, therewere no large-scale product recalls.
7574
Environmental, Social and Governance (ESG) Report 2023
Identify potential quality risks and opportunities based on the currentsituation of the Company and the internal and external environmentThe risk identification team evaluates the identified quality risks and
determines the risk levelFormulate corresponding prevention and control measures according to
quality risk level
CaseDigital Enablement for Quality Control
Case Enabling Employeeswith Quality Training
Mechanism for Handling Customer ComplaintsThe Companycontinuously improves the customer complaint handling mechanism, establishes a quality customercomplaint handling process, ensures that the problems complained by customers are solved orderly and efficiently, andbetter protects the rights and interests of customers.
Customer Satisfaction ManagementThe Company attaches importance to and continues to carry out customer satisfaction management, develops CustomerSatisfaction Management Procedure, analyzes and evaluates customer satisfaction in the form of issuing CustomerSatisfaction Questionnaire, and prepares satisfaction survey report for overall improvement. At the same time, theCompany regularly carries out sales process and business etiquette training for the Sales Department, improves theprofessional quality and service level of employees from various aspects and continuously improves customersatisfaction.
Customer Service Management
Service System GuaranteeAdhering to the management concept of “market-oriented and customer-centered”, the Company continuouslyoptimizes the customer service system, establishes the Customer Service Control Procedure, establishes the perfect salesprocedure, always adheres to the consumer-centered business philosophy, improves the after-sales servicemechanism, and rapidly responds to and handled complaints and feedback from customers. At the same time, we strictlyprotect the information security of consumers, strive to improve customer satisfaction, and take the reasonablesatisfaction of consumers as our own responsibility.
Key PerformanceKey Performance
Contract ReviewProcedure
Customer ServlceControl Procedure
Customer Satisfaction
Survey Control
Procedure
Customer recognitionLeader approval
Leader approval
Non-quality measurement anomalies
Handling suggestions
Field survey
Handling plan
Summarize and archiveContinuous improvement
Customer complaintsConfirm deliverystatus (confirm if itfalls within the scope
of the contract)
Transportationirregularities(third-party)
Customer
factors(usage/storage)
Abnormal qualitymeasurementField survey
Third party monitoring
Supplier issues(product/logisticsissues)Abnormal quality measurement
Business personnel receive complaints
Leader approvalPre-sales Technical Support Department
Analysis
Customerrecognition
Quality complaint handling process
Yes
Yes
Yes
No
No
No
7776
Environmental, Social and Governance (ESG) Report 2023
Applicable to company contract review controlTo conduct effective contract review quality control,there should be clear,sufficient, and reasonable regulations related to product requirements.Throughthe review, it is confirmed that the Company has the ability to meet theserequirements, ultimately satisfying customers
The entire process of product sales and servicesImplement the Company's quality policy, assist customers in using theCompany's products correctly, timely solve related problems during use,providecustomers with high-guality products and good services, and establish a goodimage of the Company
Applicable for shift heading and measuring external customer satisfaction of theCompanyThrough a survey of customer satisfaction. understand whether the Companycorrectly understands and meets the current and future needs and expectationsof customers, improve the QHSE management system based on the surveyresults, and continuously improve customer satisfaction
Quality complaint handling process
Receivecomplaints
Analyze and clarify
responsibilities
On siteverification
Develop ahandling plan
Close problem
and archive
Plan
execution
Customer ComplaintHandling Application Form
On site investigation report
If necessary
Plan execution
During the reporting period, the recovery rate ofcustomer satisfaction questionnaires distributed by the Company was100%
The comprehensive customer satisfaction score was about
98%
7978
Environmental, Social and Governance (ESG) Report 2023
Full Life Cycle ManagementThe Company strictly abides by the national laws and regulations, carries out the work of supplier access, audit,evaluation, classification and exit in accordance with the Supplier Management Control Procedure, and realizes the full lifecycle management of suppliers.Responsible Procurement Practice
Supply Chain ManagementThe Company attaches great importance to the supply chain management, establishes the Supplier Management System,Bidding and Procurement Management System and other internal systems, continuously strengthens the risk managementand control in the procurement process, and continuously improves the procurement quality and efficiency.
During the reporting period, the total number ofsuppliers of the Company’s main subsidiaries was
6,338
Key PerformanceKey Performance
Risk PointsOpportunities to achieve goalsControl Measures
Supply Chain Risk Identification and Countermeasures
Failure to establish aprocurement plan or
to prepare areasonableprocurement plan
Non-conformance ofmaterial quality
Raw materials meet theproduction plan and meet theCompany’s business needs
The quality of the supplier meetsthe requirements, and theproducts of the Company meetthe customer requirements
The supplier supplies goods in
time, and the Company can
complete the delivery ofcustomers’ products in time
SupplierAccess
Supplier
Audit
SupplierEvaluation
SupplierClassification
SupplierExit
Purchase raw materials in batches according to productionconditions to ensure safety stockMonthly collection of procurement plan and implementationof procurement
Develop a supplier quality management systemDevelop and implement a supplier audit plan
Define technical specifications and quality requirements forpurchased materialsImplement compliance acceptance according to incominginspection specificationPropose rectification requirements for the supplier afterunqualified acceptance
Release the procurement plan in advance, and make plantracking and arrival statisticsAssess the delivery performance of the supplier
The purchase does
not arrive in time
Improve the quality assurance
capability of the supplier toensure business continuityPoor supplier qualityassurance capability
Score and evaluate according to production management and qualitycontrol, product performance and HSE management ability, and take quality,environment and safety management system certification as importantfactors for supplier access.
Review the credit materials submitted by different types of suppliers asrequired, and issue the Supplier Investigation Report and Supplier Score Sheetafter on-site inspection if necessary.
Establish corresponding supplier exit mechanism. If there are seriousproblems or legal disputes in contract performance, remove the supplierfrom the qualified supplier pool and disqualify the supplier.
Suppliers shall be assessed according to their strength, quality, delivery, etc. andgraded according to their scores. For Level A suppliers, purchase quantity can beincreased; For Level B suppliers, purchase can be made normally; Level Csuppliers need to be provided with guidance, with reduced purchase quantity orsuspended purchase; Level D suppliers are non-conforming and will be eliminated.
Evaluate and re-evaluate suppliers, and input supplier evaluation results intosupplier information database.
8180
Environmental, Social and Governance (ESG) Report 2023
During the reporting period, the number of supplierswhose cooperation was terminated due to non-conformity was
During the reporting period,the signing rate of supplier integrity agreement was100%
Driving Supplier GrowthThe Company attaches importance to the training and communication of suppliers, promotes and implements therequirements of quality, environment and occupational health and safety protection to suppliers in the form of Notice ofRelevant Parties, assists suppliers in formulating emission reduction plans, puts forward suggestions on possibleenvironmental protection risks, and devotes itself to building a sustainable supply chain system with coordinateddevelopment of upstream and downstream.
Digital Supply ChainBased on the independently developed HENGLINK digital intelligent platform and built-in AWMS supply chain intelligentstorage system, the Company realizes the systematic and intelligent management and control of the whole process fromwarehousing, warehouse-out, storage to warehouse management, and continuously improves the procurementmanagement level of the Company.
Key PerformanceKey Performance
Key PerformanceKey Performance
The AWMS supply chain intelligent storage system of the Company is a platform for real-time collection andtimely sharing of the state informationof each link of material turnover relying on the technology of Internetof Things. Through the operation and application of each module in the system, the Company realizes thecontrol and tracking of the procurement process, and realizes the visual and systematic management ofmaterials.
Implementation of Sunshine ProcurementIn order to prevent the risk of integrity from the source of business, the Company signs the Anti-Bribery Agreement with thesupplier, and carries out the integrity training for the internal procurement personnel of the Company, and jointly createsa “sunshine” procurement environment with a clean atmosphere.
Bidding Principles of Hengli Petrochemical
CaseDigital Boosts Business Development
Principle ofseparation of powersand checks and
balances
Principle of being
honest andpublic-spirited
Commercialconfidentiality
principle
Principle of fairness
and transparency
Principle of
maintainingreputation
Principle ofprocedure
traceability
In all aspects of bidding and procurement, all judges shall participate independently,and technical and commercial judges shall be divided into stages
All procurement participants must abide by professional ethics and be honest andself-disciplined
All technical, patent and commercial quotations involved in the evaluation of biddingand procurement shall be kept confidential
Bidding and procurement evaluation standards must be fair and consistent, andconclusions must be objective and just
Relevant parties involved in the bidding and procurement shall be dedicated,professional and honest to maintain the reputation of the enterprise
Each step in the bidding and procurement process shall be provided with standardresult records and result documents for review
Employee Rights and BenefitsEmployee Growth and DevelopmentSafety Production and Occupational Health
/ 84/ 90/ 94
People-oriented,Creating Happiness for
Employees
8584
Environmental, Social and Governance (ESG) Report 2023
Recruitment anddismissalEqualemployment
PromotingdiversityHours of workand vacationsPut an end tochild labourForced labourprohibition
Pay attention tothe employmentof special groups
Standardize the entry and exit process of employees, and sign labor contractswith all employees according to lawFirmly oppose employment discrimination and ensure that employment andcareer development of employees are not affected by gender, nationality, age,religion, marriage and other factorsProvide equal and fair employment opportunities for women and ethnic minoritycandidatesFormulate the Attendance Management Measures, reasonably arrange the workand rest time of employees, and maintain the rest rights of employeesStrictly verify the age of candidates and prevent recruitment of persons underthe age of 16Arrange the employees to participate in the work according to the principle ofvoluntariness, and guarantee the personal freedom of the employees
Employee Rights and Benefits
Harmonious Labor RelationsAdhering to the concept of “people-oriented” talent development, Hengli Petrochemical has formulated the HumanResource Management System in accordance with the Labor Law of the People’s Republic of China (hereinafter referred to asthe Labor Law), the Labor Contract Law of the People’s Republic of China and other relevant laws and regulations to createa diversified and inclusive workplace environment and grow up together with employees. During the reporting period,there were no violations related to the employment of child labour or forced labour.
The Company has always been committed to broadening talent recruitment channels, formulated Personnel AppointmentManagement Measures and New Personnel Appointment Management Measures (Provisional) to provide employment anddevelopment opportunities for different personnel through various channels such as social recruitment, campusrecruitment, school-enterprise cooperation, internal recommendation and post rotation, so as to create a diversifiedstaff team.
Actively respond to the Regulations on Employment of the Disabled, pro-vide the disabled with positions such as portal crane driver, forkliftdriver, packager/auxiliary, and respect and support the employment ofdisabled workersContinue to improve the development mechanism for ex-servicemen,establish posts that meet the requirements of ex-servicemen, and en-courage ex-servicemen to participate in academic education to realizetheir personal development value
Employee Employment Management
Recruitment Channels and MethodsEmployment channel
Employment methodPrimary object
Campus Job Fair
Employment Fair for the Disabled
In-service Ex-servicemenReceived Letters of Acceptance
Internalacquisition
Onlinerecruitment
Externalacquisition
Micro-recruitment
Internal public recruitmentPublic recruitmentRelease recruitment information through recruitmentplatformsSelf-recommendation Other methodsCampus recruitment; joint training of school andenterprise
Employee internalrecommendation
Retirement re-employmentPromotion and post rotation
www.chenhr.comwww.bjx.com.cnMomentsHC ForumTieba
pulandian.597.com 51job.com
On-the-job employeesEmployees’ families
Social personnelPast and fresh graduates
Social personnelPast and fresh graduatesSocial personnelPast and fresh graduates
Excellent employeesRetired leaders
8786
Under 30 years old30-40 years old
40-50 years oldOver 50 years old
ProductionSales
TechnologyFinance
AdministrationOther
FemaleMale
8,439 Persons
21.30%
31,176 Persons
78.70%
By gender
6,086 Persons
15.36%
2,865 Persons
7.23%
18,259 Persons
46.09%
12,405 Persons
31.32%
By age
Master’s degree or aboveUndergraduate courseJunior collegeVocational school and below
21,811Persons
55.06%
5,979Persons
15.09%
11,531Persons
29.11%
Persons
0.74%
By educationalbackground
2,030Persons
5.12%
1,544Persons
3.90%
258Persons
0.65%
390Persons
0.99%
29,854Persons
75.36%
5,539 Persons
13.98%
By major
Employee Structure
Perfect Salary and Welfare
In accordance with the principle of “competitive externally and fair internally”, the Company strictly complies with theLabor Law, the Social Insurance Law of the People’s Republic of China and other relevant laws and regulations, establishesthe Detailed Rules for Salary Management System and the Management Method for Performance Appraisal of All Employees, andadheres to the principle of equal pay for equal work, and establishes a salary system with basic salary as the main bodyand variable salary matching with indirect salary, and provides a fair and competitive salary structure for employees.
Key PerformanceKey PerformanceKey Performance
Total number of employees39,615Person
Recruitment of veterans
Person
Signing rate of labor contract
%
Social insurance coverage
97.27
%
Employment ofemployees with disabilities
Person
Salary Management
Welfare
Subsidy
Performance bonus
Base pay
Salary System
8988
Efficient Democratic Management
Increasing Employee Satisfaction
The Company attaches great importance to democratic management, strictly abides by the Trade Union Law of thePeople’s Republic of China, Collective Contract Provisions and other laws and regulations, adheres to the protection of thefreedom of association and collective bargaining rights and interests of employees, and protects the legitimate rights andinterests of employees.
Organization
guarantee
Consistently carry out the publicity of plant operationsand disclose hot topics of concern to employeesEach subsidiary widely solicits opinions and demandsof employees by setting up general manager mailboxand suggestion box, carrying out employee sympo-sium, questionnaire survey and opening supervisionand report telephone, etc.
The Company attaches great importance to the opinionsand suggestions of employees, carries out satisfactionsurvey activities every year, explores the key factorsaffecting employee satisfaction by means of questionnairesurvey, takes the results as the orientation, makes timelytargeted improvement to the deficiencies, strives to createa satisfactory workplace environment for the employees,and enhances the sense of belonging and happiness ofthe employees.The Company has established a labor dispute mediationcommittee, established a labor relationship early warningand labor dispute mediation mechanism, clarified the laborand personnel dispute mediation procedures, and contin-ues to build a harmonious and stable labor relationship.
Satisfaction SurveyThe Company Was Recognized as
Dalian Labor Service BrandConstruction Unit
Salary IncentiveThe Company establishes a four-level performance management system, continuously standardizes the performancemanagement process, regularly carries out performance appraisal, and widely applies the results of performanceappraisal to the distribution of performance bonus and the selection of excellent employees, giving full play to theincentive role of salary system on talents. In addition, the Company attaches great importance to the communication andfeedback of performance, andestablishes a “two-way communication” mechanism between managers andemployees to ensure the fairness and impartiality of the appraisal results.
Welfare Care
On the basis of “fivesocial insurances and one housing fund”, holidays and other statutory benefits, the Companyadditionally provides employees with competitive welfare treatment, enhances their happiness and improves theirsatisfaction.
Performanceappraisal and
evaluation
Process control of
performancemanagement
Construction ofperformance plan
and indicator
system
Application ofperformanceappraisal results
Performance management
process
Performance Indicator System
Performancefeedback andinterview
Welfare Care
Statutory
benefitsEconomic
welfare
Mental
welfare
Facility
welfareCultural andsports welfare
Set up suggestion boxes in each office building
and server/equipment room in the plant
95%
Key PerformanceKey Performance
Fivesocial insurances and one housing fund, paidleave and statutory holidays
Establish a trade union organization in accordancewith laws and regulationsRegularly hold the worker’s congressSign Collective Contract with employees to effectivelyprotect their legitimate rights and interests
Employee stock ownership, holiday gifts, annualphysical examinationOccupational care, mental health care and familycareStaff dining room, sports room, commuter car,mother and baby care roomStaff travel, group building activities, annual meetingcelebration, sports competition, staff friendshipmeeting, group film watching, theme activity meeting
Mechanismguarantee
Measuresguarantee
Public supervision and report telephone
During the reporting period,the employee satisfaction was
9190
Networking Plan
Training plan for group leader level through online and offline classes, self-reading and teamleader teaching mode. During the reporting period, 24 training sessions were conducted, thetraining duration was 74 hours, and 1,096 person-times participated in the training
One-year training program for technician level
Key PerformanceKey Performance
Pilot PlanSpider-Man Plan
R&D Power PlanNew Power Plan
Hengke Advanced Materials Technical Personnel Training System
Project NameNew Power PlanConstant Power
Plan
Cultivation ModeProject Name
During the reporting period, the total training time of employees wasthe total number of persons trained wasand the training time per person was
person times, hours.
hours,1,989,008514,766
Hengke Advanced Materials Management Personnel Training System
Training plan implemented at shift head level in the form of project system. During the reportingperiod, 10 training sessions were held, with 84 hours of training duration, and 485 person-timesparticipated in the trainingPilot Plan 1.0: Training plan for new managers and junior managers through project system.During the reporting period, 8 training sessions were conducted, with 42 hours of training durationand 408 person-times of trainingPilot Plan 2.0: Training plan for senior managers through three ways: “off-line workshop”,“online business school” and “visit”. A total of 73 participants participated in project learningduring the reporting periodPilot Plan 3.0: Training plan for management masters by means of “action learning” and “studytour”. During the reporting period, 7 course training sessions were conducted for 56 hours and98 person-times participated in the training
Employee Growth and Development
Employee Training
The Company pays attention to talent cultivation, and has formulated the Personnel Training Management Measures, takesHengli Business School, LINK classroom and other online platforms as the starting point, relies on the trainer system andtraining resource library in the workshop, and establishes a talent cultivation system covering all employees to realize thecommon development of employees and the enterprise. During the reporting period, according to the annual trainingplan, the Company carried out extensive employee training by level, category and post to realize the common growth ofemployees and the enterprise.
Talent Training System
Spider-Man Plan
Pilot Plan
Training program for assistant engineer level, focusing on business capability upgrading,perspective and capability expansion, with a four-year training periodSpecial training program for R&D and process technicians, with one-year training period
Construction of Internal Trainer TeamThe Company is committed to establishing and improving the internal trainer system, selecting and cultivating excellentinternal trainers, constantly optimizing the instructor team, and developing the internal course resource library coveringmany fields such as technology, management and professional accomplishment, so as to realize the internal experienceinheritance and talent echelon training.
Supporting Employees to StudyThe Company actively supports employees to improve their own abilities and academic qualifications and promote theconstruction of the learning-oriented enterprise. Hengke Advanced Materials provides tuition reimbursement incentivesto employees who participate in academic advancement during the in-service period to encourage employees toenhance their business ability and improve their degree level. At the same time, we pay attention to the construction ofprofessional and technical teams, organize and carry out the application of various professional and technical titles, andtrain a high-level and high-skilled talent team suitable for the development of the enterprise. During the reporting period,a total of 150 people were organized to participate in the academic qualification promotion, and 99 people applied forprofessional titles.Career DevelopmentThe Company pays attention to the promotion of multi-channel professional ability of employees, and has formulatedrelevant systems such as Management Measures for Promotion of Front-line Employees, Management Measures for Selection ofShift Heads and Above Level, Speci?c Training Plan for Reserve Cadres and other relevant systems, and establishes theprofessional development mode of intercommunication of all channels, so as to build a broad development platform anddiversified development paths for employees of different sequences and levels, so as to ensure that each employeeobtains fair and equal promotion opportunities. At the same time, the Company has formulated the Management Measuresfor Employee Internal Post Transfer and established a dynamic human resource management system, further optimizinghuman resource allocationand continuously encouraging the internal mobility of employees.
In order to help new employees understand the Company more deeply and adapt to the new environmentand integrate into new posts, Hengli (Changxing Island) Industrial Park has carried out the inductiontraining for new employees in 2023 by adopting the mode of combining “course training” and “militarytraining expansion”, so as to comprehensively improve the individual ability and comprehensive quality ofemployees from various angles.
New Employee Training
In 2023, the first phase of the “Hengshi Plan” Training Camp was officially launched, which enables thestudents to do by learning and learn by doing through the learning in practice “immersion teaching”mode. In the first training camp, a total of 2 training sessions were held, and 27 micro courses were output.
Hengshi Plan
Career Development Path
········
Chief expert ExpertSenior technicalexpertIntermediatetechnical expertJunior technicalexpertTechnicalassistantTechnician Intern technician
·······
9392
CaseHengli (Dalian Changxing Island) Industrial Park - New Employee Induction Training
CaseHengke Advanced Materials - Launching the “Hengshi Plan” Training Camp
Professional andtechnical grade
Productiongrade
Administrativegrade
Management
grade
Sales gradeDeputy generalmanager ofproduction
Deputy generalmanager
Deputy generalmanager
Deputy generalmanager ofmarketingDirectorSenior managerSales managerSeniorsalespersonSalespersonInternsalesperson
DirectorActing directorManagerActing managerSupervisor
DirectorManagerDeputy manager SupervisorStaff memberIntern employee
ProductiondirectorWorkshopdirectorEngineerShift headSenior productionpersonnelStar ratedproductionpersonnelOrdinaryproductionpersonnelIntern employee
Safety Production and Occupational HealthTamping the Safety Cornerstone
During the reporting period,the Company’s investment in safetyproduction was
During the reporting period, the Company carried outwithinspection,withdanger was
workshop-level hidden danger items found, and the rectification rate of hiddencompany-level hidden danger items found,times of workshop-level hidden danger
times of company-level hidden danger inspection,
592,015,200 RMB
8,737
28,472100%
2,351
Key PerformanceKey Performance
CompletedCompletedCompletedCompletedCompletedCompletedCompleted
Protection Against Security RisksThe Company continuously improves the safety and health management system, hasformulated the Management Systemfor Accident Potential Inspection and Treatment, and the Management System for Dual Prevention Mechanism of Classi?edManagement and Control of Safety Risks and Hidden Danger Inspection and Treatment, organizes the workshop to carry out riskidentification work on a regular basis every year, classifies the importance of risk sources, and formulates hierarchicalmanagement and control measures to effectively improve the risk pre-control capability and prevent accidents.
Inspection and Treatment of Hidden Dangers
Key PerformanceKey Performance
On June 27, 2023, Hengli Petrochemical(Huizhou) launched the “Summer” com-prehensive safety risk inspection activity.Through the establishment of an inspectionteam, the hidden danger inspection andtreatment was implemented to furthercontain the risk signs and escort thehigh-quality development of the enterprisewith practical actions.
Hidden Danger Inspection Activity
Environmental, Social and Governance (ESG) Report 2023
9594
Achievement of Occupational Health and Safety Production
Management Objectives in 2023
Achievement ofthe current year
Hengli Petrochemical
Chemical
Hengli PetrochemicalRefining
Hengli Petrochemical(Dalian)
Kanghui New Material
0 accident of minor injury and
above0 fire and explosion accident
0 major equipment accident0 acute poisoning andoccupational disease case
100% of inspection rate ofspecial equipment100% of rectification rate of
major hidden danger
100% of special operation personneland special equipment operators areon duty with certificates
Management objectives
In accordance with the policy of “safety first, prevention first, compre-hensive management”, and in strict compliance with the Law of thePeople’s Republic of China on Work Safety, the Law of the People’sRepublic of China on Prevention and Control of Occupational Diseases andother laws and regulations, Hengli Petrochemical has formulated theProduction Safety Reward and Punishment System, Fire Safety ManagementSystem, Construction Project “Three-Simultaneous” Management Systemand HSE Assessment Management System, established the Safety Produc-tion Committee and the Safety Production Management Organization,defined the objectives of occupational health and safety productionmanagement, and linked the safety assessment responsibility with theremuneration of the Company’s senior management personnel to maintain staff health and life safety in an all-round way. Duringthe reporting period, all subsidiaries fully completed the safety production objectives, and the subsidiaries such as Hengli Petro-chemical Chemical, Hengli Petrochemical Refining, Hengli Petrochemical (Dalian) and Kanghui New Material passed theISO45001 occupational health and safety management system certification.
CaseHengli (Dalian Changxing Island) Industrial Park - New Employee Induction Training
9796
In accordance with the Law of the People’s Republic of China on Work Safety, the Emergency Response Law of the People’sRepublic of China, and the Management Measures for Emergency Plan for Production Safety Accidents, the Company hasformulated the Emergency Plan for Production Safety Accidents to continuously improve the construction of emergencydrilling system, organizes emergency drills and training regularly, practically improves the level of emergencymanagement and builds a solid line of safety production defense.
During the reporting period, the Company conductedsafety emergency drills
4,647Key PerformanceKey Performance
Conducting Safety Emergency Drill
Safety Management of Relevant PartiesImplementing Safety Management and Control MeasuresThe Company continues to strengthen the safety management and supervision of the outsourcing project, hasformulated the Contractor Safety Management System, Detailed Rules for Contractor Safety Inspection and Assessment andother management systems, to improve the management and control of construction operation from the aspects ofcontractor qualification review, safety education and training, safety management on the construction site, safetyinspection and assessment, prevent and reduce the safety accidents of the outsourcing project, and ensure the healthand safety of the personnel of relevant parties.
The Company actively promotes the deep integration of informatization and safety production, builds a safety digitalmanagement platform around the factors of enterprise safety production, and is committed to improving the efficiency andlevel of safety management of the Company through digital means.Digital Security Management
Hengli (Dalian Changxing Island) Industrial Park, in accordance with the requirements of the PilotConstruction Scheme of “Industrial Internet + Hazardous Chemical Safety Production” and in combination withthe actual situation of the Company, has developed a safety digital management platform containing 103application modules and 360-plus functional applications, which realizes real-time interaction betweenonline double prevention management, operation management, major hazard source management andother functions and 3D map. Through the intelligent management mode, the enterprise safety risks aregradually reduced and the safety prevention and control level is improved.
Digital Security Platform
Qualification
review
Safetyeducation
Safetymanagement
Safetyassessment
Qualification review by construction competent department and the Safetyand Environment Protection Department
Organize personnel entering the plant to participate in first-level safetyeducation and sign Safety Commitment Letter
Personnel entering the site shall strictly implement the Company’s safetymanagement system and accept the supervision and inspection of the SafetyManagement DepartmentCarry out safety supervision over the operation process, and assess theviolations of rules and disciplines
CaseDigital Transformation Promotes Security Upgrade
9998
During the reporting period,
the investment in safety education and training was RMBand the coverage rate of safety education and training was
safety education and training sessions have been conducted,the total time of safety education and training was hours,
,.
4,115
25,058
12,736,400100%
The Company pays attention to the guidance and publicity of safety awareness, holds the “Safety Production Month”series activities, regularly carries out education on safety ideology, technology and compliance with regulations anddisciplines, creates a strong safety culture atmosphere, focuses on creating a safety production environment, andimproves the safety production awareness of all employees.Key PerformanceKey Performance
Fostering a Safety Culture
In July 2023, the Federation of Trade Unions of WujiangDistrict and the Emergency Management Bureau ofWujiang District jointly launched the safety productiontraining for 1,000 shift heads in Wujiang District in HengliChemical Fiber. Through interactive teaching and caseinterpretation, the training helped the staff to enhancethe awareness of safety production and built a solid lineof defense for safety production.
Safety Production Training for Shift Heads
Hazard Notification
On December 12, 2023, Hengli Petrochemical Refiningcarried out the special emergency plan drill for theleakage accident of hazardous chemicals loading andunloading truck in a script-free manner, further buildingthe bottom line of safety production and enhancing theemergency management level of the Company.
The Company strictly abides by the Regulations on the SafeManagement of Hazardous Chemicals and other relevantprovisions, promotes subsidiaries to formulate the SafetyManagement System for Hazardous Chemicals and the SafetyManagement System for Loading and Unloading of HazardousChemicals, puts forward clear management requirements for theprocurement, storage, use, scrapping and other processes ofchemicals, establishes a management account for hazardouschemicals in each workshop, sets up notification of hazards ofhazardous chemicals, carries out emergency drills forhazardous chemicals, and protects the life safety of employees.
Management of Hazardous Chemicals
During the reporting period,
3,936
chemical safety drills were conducted
Key PerformanceKey Performance
The Company attaches importance to fire safety and safety management of special equipment, and has formulatedmany internal systems such as Fire Safety Management System, Safety Management Measures for Special Equipment, SafetyManagement System for Special Equipment and Operation Personnel, etc., to implement the safety responsibility for the useof special equipment according to law, effectively prevent safety production accidents and realize the control of safetymanagement process. During the reporting period, the Company had 576 safety management personnel.
Management of Fire Protection and Special Equipment
Fire truck
Professional fireman
CaseHengli Chemical Fiber - Safety Education and Training
Case
Hengli Petrochemical Refining - Special Emergency Plan Drill for Leakage Accident ofHazardous Chemicals Loading and Unloading Truck
Fire controlmanagement
Allocation of the Fire Brigadeof the Company in 2023
Special
equipmentmanagement
Set up full-time fire brigadesConduct fire control education and organize fire drill for all staffevery yearEstablish fire-fighting equipment account, and each fire-fightingequipment shall be managed by specially-assigned person
Strictly implement the annual inspection, monthly inspection,daily inspection and other routine inspections of specialequipment, and establish a complete account of specialequipment
Special equipment operators are required to work withcertificates and strictly abide by the operation procedures
101100
Occupational DiseaseHazard Notification CardOccupational Disease Warning Signs
In order to actively prevent the occurrence of work-related accidents and minimize the risk of occupational diseasehazards to employees, in accordance with the Law of the People’s Republic of China on Prevention and Control ofOccupational Diseases and other relevant laws and regulations, the Company has formulated the Responsibility System forPrevention and Control of Occupational Hazards, the Occupational Health Monitoring and File Management System for Labors,the Warning and Noti?cation System for Occupational Disease Hazards, defines the occupational disease preventionobjectives, carries out the detection of occupational-disease-inductive factors by posting warning signs at placesinvolving hazardous factors, distributes adaptive labor protection articles and conducts physical examination regularlyevery year to ensure the occupational health and safety of the workers during the working process.
Attention to Occupational Health
In November 2023, the Company’s industrial parks actively carried out safety training, emergency drills and otheractivities around the theme of “prevention first, life first” to continuously improve the safety skills of employees andpromote the high-quality development of safety of the Company.
0 incidence of occupational disease cases
经济性福利
精神类福利设施性福利
文体类福利
Hengli (Suzhou) Industrial Park:
Held the Fourth Safety SkillCompetition in 2023 to continu-ously improve the safety skilllevel of employees.
Hengli (Dalian Changx-ing Island) IndustrialPark: Widely carried outHSE training for safetymanagement person-nel and fire emergencyplan drill to effectivelyimprove emergencyresponse capability.
Hengli (Nantong) IndustrialPark: Held the 7th “119”Emergency Rescue Games,organized staff to compete onthe same stage, and compre-hensively improved the staffemergency rescue level.
Hengli (Suqian) IndustrialPark: Conducted the firesafety knowledge competi-tion, fire hazard investiga-tion and management, fireaccident emergency drills,etc., to focus on improvingthe fire safety awareness ofemployees.Hengli (Huizhou) Industrial Park:
Carried out fire warning educa-tion for all staff, use of emergen-cy equipment, and actual fire drillto further consolidate the basisof fire safety work.
Hengli (Yingkou) Industri-al Park: The fire brigadeconducted skill competi-tion to constantly build firesafety barriers throughskill competition.
Implementation of Occupational Disease Prevention and Control Targets in 2023
Indicators
CompletedCompletedCompletedCompletedCompletedCompleted
Completion status
Key PerformanceKey PerformanceKey Performance
Case Multi-measures and Construction of Security “Firewall”
100% of work-related injury insurance
coverage for workers100% of detection rate of occupational hazard
workplace100% of employees exposed to occupational hazardsparticipate in occupational health knowledge training
100% of intactness rate of occupational disease
protection facilities
100% of occupational health examination rate
In the reporting period, the coverage rate of physical examination of the Company’semployees wasand the number of new occupational diseases was
, the detection rate of occupational disease hazard factors was
100%
100%
103102
Staff Care and AssistanceWhile ensuring the physical health of employees, the Company has set up a psychological consultant room tocontinuously improve the psychological health mechanism of employees. Through the opening of mental healthassistance channels, the Company carries out the mental health training to provide psychological counseling servicesfor employees.
Focus on Mental Health
On March 7, 2023, the Company invited psychological experts to hold two sessions of the Mental HealthLecture with the theme “To relieve the mind and to empower the work”, benefiting 300 people, andcultivating the positive social mentality of employees through the development of their positive psychologicalcapital.
Psychological Counseling
The Company continuously enriches the spare-time life of employees through sports events, social activities, festivalsand other activities organized every year, helps the employees realize the balance of work and life, and enhances thecommunication and team cooperation ability among the employees.Employee Activities
Fun Sports MeetingParent-Child Activity
Basketball MatchBadminton League
Lantern Festival ActivitySpring Festival Gala
Theme Group Day ActivityBlind Dating Activity
CaseCompanion with the Heart, Empowering the Heart
Employee Support
The Company attaches great importance to and cares for the employees with difficulties, special types of work andretired employees, and provides them with practical work and life guarantee.
Care for Female Employees
The Company pays attention to the demands of female employees, actively implements the “four-phase” protectionpolicy, and effectively protects the rights and interests of female employees by establishing a women employeecommittee, signing a Special Collective Agreement for the Protection of the Rights and Interests of Female Employees, settingup a special care room for female employees, and carrying out a series of activities on Women’s Day.
Hengli Petrochemical continues to explore the establishment of a long-term mechanism to help the needyemployees, implements and refines the assistance and rescue work for the needy employees,continuously improves the happiness and security of the employees, and delivers warmth with actions.The labor union of the Company makes statistics and record for the employees suffering from illness everyyear, and provides support and condolences at the beginning of each year, so as to convey the warmth ofthe Company to the employees. In 2023, the Company offered sympathy to 20 needy employees, and theaccumulative amount of assistance was RMB 60,000.
Consolation for Retired EmployeesConsolation for Employees in Need
Hengli Petrochemical always pays attention to thespecial needs of female employees and provides morehumanized care and convenience for female employeesby setting up a special care room for female employees,which is equipped with sofa, nursing area, refrigerator,disinfection cabinet and other facilities.
A Corner of the Care Room for Female Workers
Key PerformanceKey Performance
A Series of Activities on Women’s Day
CaseAdvancing Hand in Hand, Delivering Warmth
CaseSetting up a Care Room for Female Employees to Warm Every Female Employee with Love
During the reporting period, the return rate of maternity leave of female employees wasand the return rate of parental leave was
,100%100%
Public Welfare SupportRural RevitalizationCommunity Communication and Development
/ 108/ 110/ 110
Care for Society to Createthe Future with Persistence
On April 9, 2023, the River-crossing Half Marathonand the Grand Canal Marathon Series on KaishaIsland were launched. The 182 young volunteers ofHengke Advanced Materials participated in thewhole process and served with a smile, providing asolid guarantee for the orderly progress of the eventand demonstrating the spirit of volunteer service.
Volunteers Assist in Marathon Events
Hengli (Nantong) Industrial Park actively promotes thespirit of voluntary service, devotes itself to the cultivationof environmental protection and hygiene habits, andtransmits positive energy to the society. The staff volun-teers spontaneously, voluntarily and with their own tools,insist on picking up the garbage around the Companyevery month, which not only shows the spirit of Hengli,but also wins the unanimous praise of passers-by.
In January 2023, the subsidiary Hengli Petro-chemical Refining donated RMB 100 million to helpthe construction of medical and educational infra-structure in Changxing Island, Dalian, to fulfill thefirm commitment to improve social services andimprove the quality of public life with actions.
During the reporting period,the total public welfare investment was102,000,000RMB
During the reporting period, there werevolunteer activities, withemployees participated andhours of volunteer activities
3,609578,464
8,392
Key PerformanceKey Performance
Key PerformanceKey Performance
Public Welfare Support
Facilitating Medical EducationThe Company has always practiced the concept of “revitalizing the national economy, serving the country with industry,and returning the society in good faith”. While promoting the economic and social development, the Company iscommitted to doing a good job in various public welfare charities, highlighting the responsibilities of the enterprise withpractical actions and assisting the social development.
Volunteer ActivitiesIn 2023, Hengli Petrochemical continued to practice the concept of volunteer service, organized volunteers to participatein social service activities, and delivered warmth and love to the society.
In order to vigorously carry forward the spirit of voluntary serviceand transmit the public power of free blood donation, Hengli(Nantong) Industrial Park and Hengli (Dalian Changxing Island)Industrial Park provide a platform for employees to show their loveand responsibility through organizing and carrying out free blooddonation activities, and at the same time, they also transmit theenterprise spirit of Hengli to the society. In the free blood donationpublic welfare activities carried out in July, the total number of blooddonors in Hengli (Dalian Changxing Island) Industrial Parkexceeded 1,200, and the blood donation amount reached 329,178ml. Therefore, Hengli Petrochemical (Dalian) also won the“National Free Blood Donation Promotion Award”.
Blood Donation Activities
Environmental, Social and Governance (ESG) Report 2023
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On-site Donation Ceremony of HengliPetrochemical Refining to Changxing Island
Picking up Garbage to HelpEnvironmental Protection
CaseHelping Medical Education and Practising Corporate Responsibility
CaseHelping Marathons and Accelerating Dreams
CaseDonating Blood without Compensation to Pass on the Hope of Life
CaseTo Pick up Civilization, Hengli Went First
111110
Case
Forming Cohesion by Joint Construction of Villages and Enterprises,Promoting Revitalization by Seeking Development
On July 24, 2023, Hengli (Nantong) Industrial Parkcooperated with the Party branch and the GeneralParty Branch of Kaisha Village in Wujie Town to carryout the activity of “Forming Cohesion by JointConstruction of Villages and Enterprises, PromotingRevitalization by Seeking Development” in-depthinvestigation of hidden dangers in the community byParty members to ensure safety. Through the jointsharing of Party building resources, the joint learningof party members, the joint hosting of major activityand the joint promotion of industrial development, wejointly build a beautiful Kaisha home.
Rural Revitalization
At the same time of ensuring the safety and stability of production in the factory, the volunteers of HengkeAdvanced Materials Electric Instrument Department actively undertakes the maintenance of public powerfacilities and surrounding municipal street lamps in Kaisha Village. In the face of power line problemscaused by special geology in the island, the volunteers always respond quickly and act quickly to ensurethe electricity safety of residents and employees, fully demonstrating the responsibilities and roles ofHengli people in ensuring people’s livelihood and power supply.
Line Maintenance in Kaisha Village
Hengli Petrochemical continues to pay attention to rural revitalization and helps high-quality rural development withpractical actions. During the reporting period, in order to fully implement the national rural revitalization strategy, HengliFutures actively carried out aids to the needy around such measures as industry cultivation, public welfare donation,special population poverty prevention, consumption assistance, Party building and joint construction, financial sciencepopularization, etc., and continuously enhanced the self-blood production capacity of the supported areas. During thereporting period, the Company invested RMB 3,000 in rural revitalization.
Community Communication andDevelopment
Hengli Petrochemical always adheres to the attitude of “friendly negotiation and joint solution” and is committed toestablishing a mutually beneficial relationship of common prosperity and coordinated development with the community inthe process of business development. The Company has formulated the Statement of Community Relations System, sets upspecial personnel to be responsible for the management of community relations, and fully supports the construction oflocal communities by relying on the resource advantages of each industrial park to build a beautiful home.
Rural Revitalization Initiatives
Promoting Rural Revitalization with Multiple Measures
IndustrycultivationDirectional
supportParty building andjoint constructionPopularization offinancial science
Cultivate local characteristic industrial projects such as chicken raising, phellinus linteus plantingand honey industry in villages, and strive to increase villagers’ income and avoid poverty-returningCarry out household visits to understand the development of support work and the actual needs ofsupport objectsInvestigate the local Party building and joint construction, give full play to the advantages of jointconstruction, and realize joint construction, sharing and win-winExplore the “insurance + futures” project, and carry out special lectures on “insurance +futures” cases for the local cadres and masses
Community Development with Help of Party Branch
CaseHengke Advanced Materials - Guarantee of People’s Livelihood
113112
Index of Indicators
Appendixes
Report ContentsCASS-ESG5.0 GRI StandardsP1.1/P1.2/P1.3
P2.1/P2.2A2P4.1/P4.2/P4.3/P4.4G3.1/G3.2/G3.5
G1.1/G1.2G1.3/G1.4G1.10/G1.11/G3.6/G3.7
G1.6/G1.7/G1.8/G1.9
E5.1/E5.2/E5.3/E5.4E1.1/E1.3/E1.4//E1.5/E1.6/E2.1E3.1/E3.2/E3.3/E3.4/E3.5/E3.6
E2.1/E2.2/E2.4/E2.5/E2.6
305-1/305-2/305-
3/305-4/305-5/305-7/306-1/306-2/306-4302-1/302-2/302-4/302-5
102-18/102-22 /102-24102-11/102-30/102-16/102-17/205-2
102-1/102-12/102-46/
102-50/102-53
102-14201-1/305-5102-2/102-3/102-7102-40/102-44/102-47
E2.9/E2.10/E2.11/E2.12/E2.13
S5.1E2.14E4.1/E4.2/E4.3
303-3/303-4/303-5308-1/304-1/304-3
V2.1/V2.2/V2.3V2.4/V2.5/V2.7/V2.8
//S4.6
/////
Index of IndicatorsFeedback
S4.1/S4.2S4.5/S4.6/S4.7/S4.8S5.1/S5.2/S5.4/S5.6
417-1417-1/418-1308-1/308-2
413-1
413-1A4A5
102-55/
S1.1/S1.2/S1.3/S1.4/S1.6/S1.7/S1.8/1.11S2.1/S2.2/S2.3/S2.4S1.10/S3.1/S3.2/S3.4/S3.5/S3.6/S3.7/S3.8/S3.9
V3.4/V3.6/V3.7V3.3
102-8/401-1/401-2/401-3/405-1/406-1/407-1/408-1/409-1
404-1/404-2403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8
Foreword
About This Report
Water Resources
ManagementCreating a Green
Supply Chain
AdvocatingLow-carbon Office
BiodiversityConservationImproving R&D
SystemEnabling Innovation
AchievementsPromoting theDevelopment ofDigital IntelligenceProtectingIntellectual Property
RightsGuardingInformation Security
Quality Assurance
FirstCustomer Service
ManagementResponsibleProcurement PracticeEmployee Rights and
BenefitsEmployee Growth and
DevelopmentSafety Production and
Occupational HealthPublic Welfare Support
Community
Communication and
Development
Message From
ChairmanSustainableDevelopmentHighlights in 2023
About HengliPetrochemicalESG Development
Management
On-goingStandardized
OperationCompliance Risk
ManagementStrengthening theInvestor Relations
Management
Adhering toBusiness EthicsAddressing ClimateChanges
EnvironmentalManagementPollutant ControlStrengthening Energy
Conservation andConsumption Reduction
ReportOverview
EnergyConservationand Emission
Reduction,EnvironmentProtection with
Persistence
Quality First,Pursuing Stable
Development
CollaborativeEmpowerment
and Joint
Progress with
Persistence
People-oriented,
Creating
Happiness for
EmployeesCare for Society
to Create the
Future with
Persistence
StandardizingGovernance,Moving Forward
withPerseverance
EnergyConservation and
EmissionReduction,EnvironmentProtection with
Persistence
Report ContentsCASS-ESG5.0 GRI Standards
Thank you for reading the 2023 Environmental, Social and Governance (ESG) Report of Hengli Petrochemical Co., Ltd.In order to improve the work of Hengli Petrochemical in the aspects of environment, society and governance, furtherenhance the ability and level of sustainable development of the Company, and strengthen the communication with allwalks of life, we sincerely hope that you can put forward valuable opinions and suggestions on our work and the report.
Feedback
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Multi-choice questions (please tick the corresponding place)
1．Your overall evaluation on the 2023 ESG Report of Hengli Petrochemical:
2．What do you think of the performance of Hengli Petrochemical in customer service?3．What do you think of the performance of Hengli Petrochemical in scientific and technological innovation?4．What do you think of the performance of Hengli Petrochemical in industry development?5．What do you think of the performance of Hengli Petrochemical in building its staff team?6． What do you think of the performance of Hengli Petrochemical in voluntary public welfare?7．What do you think of the performance of Hengli Petrochemical in environmental protection?8．What are your opinions on the ESG work of Hengli Petrochemical?
Environmental, Social and Governance (ESG) Report 2023
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