N OT IF IC ATI ON LET TE R 通 知 信 函 Dear Non-registered holder(1) , (A joint stock limited company incorporated in the People's Republic of China) （在中華人民共和國註冊成立之股份有限公司） （Stock Code 股份代號：00338） 20 September 2023 Sinopec Shanghai Petrochemical Company Limited (the "Company") – Notice of Publication of the 2023 Interim Report (the "Current Corporate Communications") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.spc.com.cn and the ...

e fili 去日日日 LI TY 1 1 11 11 11 11 2023 半 年 度 報 告 d ( 於中華人民共和國註冊成立的股份有限公司 ) 中國百化上海口油化工股份有限公司 SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED 股份代號: 00338 香港 600688 上海 目錄 2 重要提示 3 釋義 4 公司簡介和主要財務指標 8 董事會報告 26 重要事項 41 普通股股份變動及股東情況 45 董事、監事、高級管理人員情況及其他 | --- | --- | |-------|----------------------------------------------------------------------| | | | | 50 | 中期財務資料的審閱報告 | | | A. 按照《國際財務報告準則》編製的簡明合併中期財務資料（未經審核） | | 51 | 中期簡明合併利潤表 | | 52 | 中期簡明合併綜合收益表 | | 53 | 中期簡明合併資產負債表 | | 56 | 中期簡明合併股東權益變動表 | | 58 | 中期簡明合併現金流量表 ...

证券代码：600688 证券简称：上海石化 公告编号：临 2023-35 中国石化上海石油化工股份有限公司 关于召开 2023 年半年度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 中国石化上海石油化工股份有限公司（以下简称"公司"或"本 公司"）已于 2023 年 8 月 24 日发布公司 2023 年半年度报告，为便于 广大投资者更全面深入地了解公司 2023 年半年度经营成果、财务状 况，公司计划于 2023 年 9 月 26 日上午 9:00-10:00 举行 2023 年半年 度业绩说明会，就投资者关心的问题进行交流。 一、 说明会类型 会议召开时间：2023 年 9 月 26 日(星期二) 上午 9:00-10:00 会议召开地点：上海证券交易所上证路演中心（"上证路演中心"） （网址：https://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 投资者可于 2023 年 9 月 19 日(星期二) 至 9 月 25 日(星期 一)16:00 ...

Financial Performance - The company's operating revenue for the first half of 2023 was RMB 44,937,051 thousand, a decrease of 2.10% compared to RMB 45,900,355 thousand in the same period last year[9]. - The total loss for the period was RMB 1,211,974 thousand, representing an increase of 173.83% from a loss of RMB 442,601 thousand in the previous year[9]. - The net loss attributable to shareholders of the parent company was RMB 988,277 thousand, an increase of 126.65% compared to RMB 436,042 thousand in the same period last year[9]. - The company reported a net loss attributable to shareholders of RMB 988.28 million for the first half of 2023, compared to a loss of RMB 436.04 million in the same period last year, representing an increase in loss of 126.67%[13]. - In the first half of 2023, the company achieved a net sales revenue of RMB 38.66 billion, a decrease of 3.69% compared to the same period last year[20]. - The company reported a net loss of RMB 9.67 billion for the first half of 2023, an increase of RMB 5.40 billion compared to a loss of RMB 4.27 billion in the same period last year[21]. - The company reported a basic and diluted loss per share of RMB 0.092 for the six months ended June 30, 2023, compared to RMB 0.040 for the same period in 2022[105]. - The total comprehensive loss for the six months ended June 30, 2023, was RMB 985,707 million, compared to a total comprehensive income of RMB 157,357 million for the same period in 2022[105]. Cash Flow and Financing - The net cash flow used in operating activities was RMB -226,882 thousand, a significant decrease of 96.46% from RMB -6,405,122 thousand in the previous year[9]. - The company’s cash outflow from operating activities was RMB 280 million, significantly reduced from RMB 6.44 billion in the same period last year[22]. - The company achieved a net cash flow from financing activities of RMB 3,427,414,000, a 76.10% increase compared to the previous year, reflecting increased borrowing activities[33]. - The net cash flow from operating activities for the first half of 2023 was a negative RMB 226,882 thousand, a significant improvement compared to a negative RMB 6,405,122 thousand in the same period of 2022[108]. - The company raised RMB 16,018,000 thousand in loans during the first half of 2023, up from RMB 9,455,000 thousand in the same period of 2022[110]. Assets and Liabilities - The net assets attributable to shareholders of the parent company at the end of the reporting period were RMB 25,276,032 thousand, down 3.69% from RMB 26,243,746 thousand at the end of the previous year[10]. - Total assets at the end of the reporting period were RMB 41,701,821 thousand, an increase of 1.11% from RMB 41,242,782 thousand at the end of the previous year[10]. - The company's total borrowings increased by RMB 34.98 billion to RMB 57.48 billion as of June 30, 2023[24]. - The asset-liability ratio as of June 30, 2023, was 38.97%, up from 31.58% a year earlier[26]. - The total liabilities reached RMB 16,295,519 thousand as of June 30, 2023, up from RMB 14,871,357 thousand at the end of 2022, reflecting a rise of approximately 9.5%[99]. Production and Sales - The total production of main products increased by 16.30% year-on-year, reaching 6.3172 million tons in the first half of 2023[18]. - The company processed 7.0939 million tons of crude oil, including 403,100 tons of processing for others, marking a 22.41% increase year-on-year[18]. - The production of gasoline was 1.6047 million tons, up 10.80% year-on-year, while diesel production increased by 40.74% to 1.8454 million tons[18]. - The production of aviation kerosene surged by 107.24% to 816,100 tons in the first half of 2023[18]. - The company's product sales rate was 98.93%, with a cash collection rate of 100% excluding related parties[18]. Research and Development - R&D expenses increased by 86.85% to RMB 68,062,000 due to the rise in research projects during the reporting period[33]. - The company is actively researching new technologies in the refining and chemical industry, including CO2 capture and utilization technology, to adapt to the ongoing transformation in the energy sector[15]. Environmental Compliance - The company achieved a 100% compliance rate for sulfur dioxide emissions, with an actual average concentration of 0.01-30 mg/m³ and a total discharge of 88.51 tons[62]. - The company also maintained a 100% compliance rate for nitrogen oxides, with an actual average concentration of 0.1-85 mg/m³ and a total discharge of 564.73 tons[62]. - The company reported a total discharge of 299.25 tons for chemical oxygen demand, achieving a daily average compliance rate of 100%[64]. - The company received no administrative penalties for environmental issues during the reporting period[72]. Corporate Governance - The board of directors has approved the half-year report in a meeting attended by all directors[2]. - The company held its annual general meeting on June 28, 2023, where various reports and proposals were approved[51]. - The company has complied with all provisions of the Corporate Governance Code as per the Hong Kong Listing Rules during the reporting period[59]. Shareholder Information - The major shareholder, Sinopec Corp., holds 5.459 billion shares, accounting for 50.55% of the total shares, indicating absolute control over the company[50]. - The total number of ordinary shareholders as of the end of the reporting period is 94,357[89]. - The company did not issue any securities during the reporting period[88]. Risks and Challenges - The company faces risks related to the cyclical nature of the oil and petrochemical market, which may adversely affect its operations[44]. - The company relies on imported crude oil for over 95% of its needs, exposing it to procurement risks and price fluctuations[45]. - The company is exposed to risks from currency fluctuations, particularly the depreciation of the RMB against foreign currencies, which could increase costs and impact profitability[48].

Financial Performance - Operating revenue for the first half of 2023 was RMB 44,937,051, a decrease of 2.10% compared to RMB 45,900,355 in the same period last year[5]. - Total loss for the period was RMB -1,211,974, representing an increase of 173.83% from RMB -442,601 in the previous year[5]. - Net loss attributable to shareholders of the parent company was RMB -988,277, up 126.65% from RMB -436,042 in the same period last year[5]. - Basic loss per share for the period was RMB -0.092, compared to RMB -0.040 in the same period last year[6]. - The company reported a pre-tax loss of RMB 1.190 billion, an increase of RMB 0.757 billion compared to a pre-tax loss of RMB 0.433 billion in the same period last year[19]. - The company reported a net loss of RMB 1,211,974 thousand for the first half of 2023, compared to a loss of RMB 442,601 thousand in the same period of 2022, representing an increase in losses of approximately 174.5%[55]. - The total comprehensive income for the six months ended June 30, 2023, was RMB (964,118,000), compared to RMB (147,866,000) in the same period of the previous year, indicating a deterioration in overall financial health[70]. Cash Flow and Liquidity - Cash flow from operating activities showed a net outflow of RMB -226,882, a significant decrease of 96.46% compared to RMB -6,405,122 in the previous year[5]. - The company's cash flow from investment activities included a cash inflow of RMB 1,000,000 thousand from the recovery of term deposits due within one year, a decrease from RMB 5,950,000 thousand in the previous year[77]. - The cash inflow from financing activities generated a net inflow of RMB 3,427,414 thousand, compared to RMB 1,946,321 thousand in the same period last year, indicating improved financing conditions[58]. - The total cash and cash equivalents increased by RMB 3,714,009 thousand for the six months ended June 30, 2023, compared to a decrease of RMB (2,682,093) thousand in the same period of 2022[78]. - The company's cash and cash equivalents increased to RMB 6,931,677 thousand, representing 16.62% of total assets, a 73.36% increase from RMB 3,998,332 thousand at the end of 2022[39]. Assets and Liabilities - Total assets at the end of the reporting period were RMB 41,701,821, an increase of 1.11% from RMB 41,242,782 at the end of the previous year[6]. - The company's total liabilities reached RMB 16,295,519 thousand, up from RMB 14,871,357 thousand, indicating an increase of about 9.5%[53][54]. - The asset-liability ratio as of June 30, 2023, was 38.97%, up from 31.58% a year earlier[29]. - The total amount of accounts payable as of June 30, 2023, was RMB 2,162,096 thousand, down from RMB 2,926,534 thousand as of December 31, 2022, reflecting a decrease of approximately 26%[103]. Shareholder Information - The major shareholder, China Petroleum & Chemical Corporation, holds 5,459,455,000 A shares, representing 50.55% of the total issued shares[11]. - The company’s total issued A shares are 10,785,000,000, with 74.49% of A shares held by major shareholders[14]. - The total number of ordinary shareholders at the end of the reporting period was 94,357[9]. - The company has not received any notifications regarding additional shareholdings from directors or senior management beyond those disclosed[15]. Research and Development - R&D expenses increased to RMB 68,062 thousand, up 86.85% from RMB 36,426 thousand in 2022 due to increased R&D projects[36]. - Research and development expenses (excluding depreciation and amortization) for the six months ended June 30, 2023, were RMB 66,689 thousand, compared to RMB 34,884 thousand for the same period in 2022, marking an increase of approximately 91%[92]. Operational Highlights - Total production of main products reached 6.3172 million tons, an increase of 16.30% year-on-year[19]. - The company processed 7.0939 million tons of crude oil, including 0.4031 million tons of processing, representing a year-on-year increase of 22.41%[19]. - The sales revenue for synthetic fibers, resins and plastics, intermediate petrochemical products, and petrochemical product trading decreased by 3.0%, 10.58%, 15.19%, and 38.75% respectively, while petroleum products increased by 12.01%[22]. Compliance and Governance - The company has adhered to all corporate governance codes as per the Hong Kong Listing Rules during the reporting period[50]. - The company has implemented new accounting standards effective from January 1, 2023, which may impact future financial reporting[7]. - The company’s financial data is prepared in accordance with International Financial Reporting Standards, and the interim financial statements are unaudited[18].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 Sinopec Shanghai Petrochemical Company Limited 中國石化上海石油化工股份有限公司 聯席公司秘書 劉剛 中國，上海，2023年8月10日 00338 董事會會議召開日期 本公告乃依據《香港聯合交易所有限公司證券上市規則》第13.43條而作出。 中國石化上海石油化工股份有限公司（「本公司」及其附屬公司「本集團」）董事會（「董事 會」）玆通告謹定於2023年8月23日（星期三）舉行董事會會議，以審議並批准本集團截至 2023年6月30日止之2023年半年度業績以作刊發之用及處理其他事項。 承董事會命 於本公告刊登日，本公司的執行董事為萬濤﹑管澤民﹑杜軍及黃翔宇；本公司的非執行 董事為解正林及秦朝暉；及本公司的獨立非執行董事為唐松、陳海峰、楊鈞、周穎及黃 江東。 ...

中国石化上海石油化工股份有限公司（以下简称"公司"或"本 公司"）2022 年年度报告已于 2023 年 3 月 23 日在上海证券交易所网 站（www.sse.com.cn）及指定信息披露媒体披露。为便于广大投资者 更全面深入地了解公司 2022 年度经营成果、财务状况，公司计划于 2023 年 6 月 7 日上午 9:00-10:00 在上证路演中心平台举行 2022 年 度业绩说明会，就投资者关心的问题进行交流。 会议召开时间：2023 年 6 月 7 日(星期三) 上午 9:00-10:00 会议召开地点：上海证券交易所上证路演中心（"上证路演中心"） （网址：https://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 一、 说明会类型 本次投资者说明会以网络互动形式召开，公司将针对 2022 年度 的经营成果及财务指标的具体情况与投资者进行互动交流和沟通，在 信息披露允许的范围内就投资者普遍关注的问题进行回答。 二、 说明会召开的时间、地点 证券代码：600688 证券简称：上海石化 公告编号：临 2023-27 中国石化上海石油化工股份有限公司 关于召开 20 ...

Financial Performance - The company's operating revenue for Q1 2023 was CNY 21,978,009, a decrease of 15.49% compared to CNY 26,006,070 in the same period last year[5]. - The net profit attributable to shareholders of the listed company was a loss of CNY 163,142, representing a decline of 176.27% from a profit of CNY 213,510 in the previous year[5]. - The basic and diluted earnings per share were both negative CNY 0.015, compared to positive CNY 0.020 in the previous year[5]. - Net profit for Q1 2023 was -162,346 thousand RMB, compared to a net profit of 215,222 thousand RMB in Q1 2022, indicating a significant decline[19]. - Operating profit for Q1 2023 was -161,125 thousand RMB, down from 311,893 thousand RMB in the same period last year[18]. - The company reported a total comprehensive income of -162,346 thousand RMB for Q1 2023, compared to 421,018 thousand RMB in Q1 2022[19]. - The basic earnings per share for Q1 2023 was -0.015 RMB, compared to 0.020 RMB in Q1 2022, reflecting the decline in profitability[19]. Cash Flow and Assets - The net cash flow from operating activities was a negative CNY 29,479, compared to a negative CNY 1,785,568 in the same period last year[5]. - Cash flow from operating activities showed a net outflow of -29,479 thousand RMB in Q1 2023, compared to -1,785,568 thousand RMB in Q1 2022, indicating improved cash management[20]. - The company's cash and cash equivalents increased to CNY 7,281,505 from CNY 3,998,332 year-over-year[15]. - Cash and cash equivalents at the end of Q1 2023 were 3,953,405 thousand RMB, down from 4,987,376 thousand RMB at the end of Q1 2022[21]. - As of March 31, 2023, the total current assets amounted to CNY 15,764,370, a slight decrease from CNY 15,765,882 as of December 31, 2022[15]. - The total assets at the end of the reporting period were CNY 40,637,918, reflecting a decrease of 1.47% from CNY 41,242,740 at the end of the previous year[6]. - The total assets as of March 31, 2023, were CNY 40,637,918, down from CNY 41,242,782 at the end of 2022[17]. Liabilities and Equity - The total liabilities decreased to CNY 14,411,891 from CNY 14,871,357 compared to the previous year[16]. - The total equity attributable to shareholders was CNY 26,097,552, down from CNY 26,243,746 compared to the previous year[17]. - Short-term borrowings increased significantly to CNY 5,048,000 from CNY 1,550,000 year-over-year[16]. - The total equity as of March 31, 2022, was RMB 26,371,386 thousand, with a minor adjustment of RMB 39 thousand[26]. Operational Insights - The company reported a decrease in sales volume and reduced investment income as key reasons for the decline in net profit attributable to shareholders[10]. - The company received government subsidies amounting to CNY 7,679, which are closely related to its normal business operations[8]. - The company is implementing adjustments in accordance with the new accounting standards effective from January 1, 2023, which may impact financial reporting[7]. - The company reported a direct economic loss of approximately CNY 9.71 million due to a production safety incident[14]. - Research and development expenses increased to 30,776 thousand RMB in Q1 2023, up from 11,867 thousand RMB in Q1 2022, reflecting a focus on innovation[18]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 95,286, with the largest shareholder being Sinopec Limited holding 50.55%[11]. - The company has no known related party relationships among its major shareholders[13].

Financial Performance - The company's operating revenue for Q1 2023 was CNY 21,978,009 thousand, a decrease of 15.49% compared to CNY 26,006,070 thousand in the same period last year[4] - The net profit attributable to shareholders of the listed company was a loss of CNY 163,142 thousand, representing a decline of 176.27% from a profit of CNY 213,510 thousand in the previous year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 159,041 thousand, down 165.70% from CNY 241,668 thousand in the same period last year[4] - The decline in net profit was attributed to a decrease in product sales and reduced investment income during the reporting period[7] - Net profit for Q1 2023 was a loss of RMB 162,346 thousand, compared to a profit of RMB 215,222 thousand in Q1 2022, indicating a significant decline[15] Cash Flow and Liquidity - The net cash flow from operating activities was a negative CNY 29,479 thousand, compared to a negative CNY 1,785,568 thousand in the previous year, indicating a significant improvement[4] - Cash flow from operating activities in Q1 2023 was a net outflow of RMB 29,479 thousand, an improvement from a net outflow of RMB 1,785,568 thousand in Q1 2022[16] - Cash flow from investing activities in Q1 2023 was a net outflow of RMB 386,507 thousand, compared to a net outflow of RMB 2,824,403 thousand in Q1 2022, showing a reduction in cash outflow[16] - Cash flow from financing activities in Q1 2023 was a net inflow of RMB 3,464,658 thousand, compared to RMB 4,485,169 thousand in Q1 2022, indicating a decrease in financing activities[17] - The company's cash and cash equivalents increased to RMB 7,281,505,000 from RMB 3,998,332,000 as of December 31, 2022, reflecting a significant increase of approximately 82.5%[12] Assets and Liabilities - The total assets at the end of the reporting period were CNY 40,637,918 thousand, a decrease of 1.47% from CNY 41,242,740 thousand at the end of the previous year[4] - The total assets decreased slightly to RMB 40,637,918,000 from RMB 41,242,782,000, indicating a reduction of about 1.5%[13] - The total liabilities decreased to RMB 14,411,891,000 from RMB 14,871,357,000, a reduction of approximately 3.1%[13] - Short-term borrowings rose sharply to RMB 5,048,000,000 from RMB 1,550,000,000, marking an increase of approximately 225.4%[13] - The total non-current assets decreased to RMB 24,873,548,000 from RMB 25,476,900,000, reflecting a decline of about 2.4%[12] Shareholder Information - As of March 31, 2023, the total number of ordinary shareholders is 95,286, with the top 10 shareholders holding a total of 5,459,455,000 shares, representing 50.55% of the total shares[8] - The equity attributable to shareholders of the listed company was CNY 26,097,552 thousand, down 0.56% from CNY 26,243,705 thousand at the end of the previous year[4] - The total equity attributable to shareholders decreased to RMB 26,097,552,000 from RMB 26,243,746,000, a decrease of approximately 0.6%[13] Accounting Changes - The company has implemented adjustments in financial reporting due to the new accounting standards effective from January 1, 2023, impacting the recognition of deferred tax assets and liabilities[5] - The company executed new accounting standards in 2023, impacting the financial statements[18] - The accounting policy change resulted in a net profit adjustment of CNY 372,000 for the three months ended March 31, 2022[20] - The cumulative impact of the policy change was reflected in the retained earnings and other relevant financial statement items[20] - Deferred tax assets increased by CNY 42,000, while deferred tax liabilities rose by CNY 3,000 as a result of the policy change[21] Research and Development - Research and development expenses increased to RMB 30,776 thousand in Q1 2023, compared to RMB 11,867 thousand in Q1 2022, reflecting a focus on innovation[14] Other Financial Metrics - The weighted average return on net assets was -0.623%, a decrease of 1.33 percentage points from 0.700% in the previous year[4] - The company reported non-recurring gains and losses totaling CNY -4,101 thousand for the period, primarily due to employee termination benefits and accounts receivable discount losses[6] - The company's retained earnings as of March 31, 2023, stand at RMB 7,759,906,000, down from RMB 7,923,048,000 as of December 31, 2022[13] - The company reported a direct economic loss of approximately RMB 9,714,800 due to a production safety incident on March 25, 2023[10]

Financial Performance - The net loss attributable to shareholders for 2022 was RMB 2,872,072 thousand according to Chinese accounting standards, and RMB 2,846,156 thousand according to International Financial Reporting Standards, with no dividends proposed for the year[5]. - The company's net sales for 2022 were RMB 72,654.6 million, a decrease of 4.3% from RMB 75,888.8 million in 2021[10]. - The company reported a pre-tax loss of RMB 3,573.7 million for 2022, compared to a profit of RMB 2,721.1 million in 2021, marking a significant decline[10]. - The net loss attributable to shareholders for 2022 was RMB 2,846.2 million, a sharp decrease from a profit of RMB 2,073.4 million in 2021, representing a 237.5% decline[10]. - The company's total assets decreased to RMB 41,136.7 million in 2022 from RMB 46,920.6 million in 2021, reflecting a decline of 12.0%[10]. - The net asset attributable to shareholders at the end of 2022 was RMB 26,227.7 million, down 13.3% from RMB 30,242.1 million in 2021[10]. - The operating income for 2022 was RMB 82,518.3 million, a decrease of 7.7% compared to RMB 89,280.4 million in 2021[13]. - The net cash flow from operating activities for 2022 was a negative RMB 7,337.5 million, compared to a positive RMB 4,060.0 million in 2021[13]. - The company reported a diluted loss per share of RMB (0.265) for 2022, compared to earnings of RMB 0.185 per share in 2021[14]. - The company experienced a significant increase in the asset-liability ratio to 36.06% in 2022 from 35.38% in 2021, indicating a slight increase in financial leverage[14]. Market Position and Operations - The company is a major integrated petrochemical enterprise in China, focusing on refining and producing various petroleum products, with a significant portion of sales coming from the East China region[9]. - The company has a strong market position in the production of refined oil, intermediate petrochemical products, synthetic resins, and synthetic fibers, benefiting from the growing demand for petrochemical products in China[9]. - The company has independent public utilities and environmental protection systems, along with comprehensive transportation facilities including maritime, inland river, railway, and road transport[9]. - The company produced over 60 different products, including various specifications of synthetic fibers, resins, plastics, and petrochemical products[19]. - The company's main products accounted for a total of 100% of the net sales in 2022, with petroleum products making up 57.04%[23]. - Gasoline sales contributed 23.50% and diesel sales contributed 20.05% to the total revenue, highlighting the significance of transportation fuels[23]. - The company is involved in various businesses including oil and gas exploration, refining, and petrochemical production[31]. - The company is located in the economically active Yangtze River Delta region, which enhances its competitive advantage in logistics and transportation[46]. Challenges and Risks - The company faced unprecedented challenges in 2022 due to global economic downturns and geopolitical tensions affecting oil and gas prices[48]. - The company anticipates that international oil and gas prices will remain at a medium to high level throughout the year due to geopolitical risks and OPEC production controls[130]. - The company faces four major challenges in 2023: oil price volatility, market uncertainty, rising investment costs, and external risk accumulation[131]. - The company faces risks related to the cyclical nature of the oil and petrochemical markets, with significant sensitivity to macroeconomic conditions and fluctuations in crude oil and petrochemical product prices[139]. - Over 95% of the crude oil required for production is imported, exposing the company to procurement risks and the inability to fully pass on increased costs due to rising oil prices[140]. - The company is subject to numerous environmental regulations, and potential future stricter standards could lead to additional costs[142]. - The company’s operations may be adversely affected by fluctuations in the RMB exchange rate against foreign currencies, impacting costs and profitability[143]. Research and Development - The company is engaged in research and development of alternative energy products and technology services[32]. - The company applied for 120 patents and was granted 59, achieving significant breakthroughs in technology innovation, including the development of carbon fiber and composite materials for various applications[52]. - Research and development expenses for 2022 amounted to RMB 130.5 million, an increase from RMB 94.3 million in 2021, primarily due to higher material costs for equipment and product technology development[92]. - The company focuses on R&D innovation, particularly in the production processes of ethylene and propylene, which are key raw materials for various products[155]. Environmental and Safety Initiatives - The company achieved a 57.64% year-on-year reduction in ammonia nitrogen emissions, a 23.90% reduction in sulfur dioxide emissions, and a 10.56% reduction in nitrogen oxides emissions[195]. - The company maintained a 100% compliance rate for wastewater discharge and a 99.99% compliance rate for controlled waste gas emissions in 2022[195]. - The company conducted 2,902,476 leak detection tests on production equipment, identifying 8,374 leaks and successfully repairing 8,245 of them, resulting in a repair rate of 98.50%[195]. - The company received the "2022 Green Enterprise" award and continued to hold the title of "Chinese Environmentally Friendly Enterprise" after passing the review[195]. - The company has implemented a dual prevention mechanism to mitigate major safety and environmental risks, enhancing its HSE performance[195]. - The company has obtained environmental impact assessments for seven projects, including the thermoplastic elastomer project in 2022[198]. Shareholder and Corporate Governance - The controlling shareholder of the company is China Petroleum & Chemical Corporation, holding 67.20% of the shares[33]. - The company has no non-operational fund occupation by controlling shareholders and their related parties[6]. - The company has not violated regulatory decision-making procedures in providing guarantees[6]. - The board of directors has detailed the potential risks that may affect the company's future development in the management discussion and analysis section of the report[6]. - The company has appointed KPMG Huazhen LLP as the domestic auditor and KPMG as the overseas auditor for the fiscal year 2022, with a total remuneration of RMB 6,837,000[178]. - The company has not issued any stock options under the equity incentive plan during the reporting period, and no options were exercised or canceled[182]. Future Plans and Goals - The company aims to continuously improve operational efficiency and strives to become a "domestically leading, world-class" energy, chemical, and new materials company[9]. - The company aims to enhance its competitiveness by focusing on low-cost upstream operations and high-value downstream products, while promoting technological upgrades and ecological transformation[132]. - The company plans to process a total of 13.6 million tons of crude oil in 2023, with expected production of 8.001 million tons of refined oil, 756,000 tons of ethylene, and 680,000 tons of paraxylene[133]. - The company plans to achieve commercial operation of the 48K large bundle project in the current year and initiate the construction of the second phase, along with establishing a 100-ton high-performance carbon fiber testing facility[137]. - The company anticipates capital expenditures of approximately RMB 3.7 billion for 2023, which will be financed through a combination of financing activities and internal funds[141].