Core Viewpoint - Hengli Petrochemical announced the absorption and merger of its subsidiary Hengli Petrochemical (Dalian) Chemical Co., Ltd. to optimize management structure and improve operational efficiency, with a completion date set for July 31, 2025 [2] Group 1: Company Overview - Hengli Petrochemical's subsidiary Hengli Chemical was established on December 13, 2016, with a registered capital of 457.495 million yuan. As of the end of 2024, it had total assets of 70.58 billion yuan, total liabilities of 60.49 billion yuan, and net assets of 10.09 billion yuan [2] - In 2024, Hengli Chemical achieved an operating income of 42.1 billion yuan and a net profit attributable to shareholders of 2.37 billion yuan [2] Group 2: Business Segments - The refining products are primarily concentrated in Hengli Refining and Hengli Chemical, with the refining business accounting for 49% of revenue and 60.6% of gross profit, making it the core profit source for the company [3] - Polyester products account for 25% of gross profit, while PTA (Purified Terephthalic Acid) contributes 9.87% to gross profit [3] Group 3: Financial Performance - In 2024, Hengli Petrochemical reported an operating income of 236.273 billion yuan, a year-on-year increase of 0.63%, and a net profit attributable to shareholders of 7.044 billion yuan, equivalent to a daily profit of 19.29986 million yuan, reflecting a year-on-year growth of 2.01% [3] - In the first quarter of 2025, the company reported an operating income of 57.02 billion yuan, a year-on-year decrease of 2.3%, and a net profit attributable to shareholders of 2.05 billion yuan, down 4.1% year-on-year [3]

Group 1 - The petrochemical industry is referred to as the "mother of industries," significantly impacting various sectors from daily life to national defense and aerospace [1] - China's petrochemical enterprises are actively responding to the national innovation-driven development strategy, focusing on "oil transformation," "oil to specialty," and "reducing oil while increasing chemicals" [1] - Breakthroughs in key materials have been achieved, including high-performance synthetic resins, specialty rubbers, high-end fiber materials, and electronic chemicals, leading to domestic substitution of previously imported products [1] Group 2 - In 2024, China's chemical new materials industry is projected to reach a scale of $165.6 billion, having grown 3.4 times over the past decade, accounting for 36.4% of global output [1] - Despite significant achievements in high-end new materials, challenges remain, particularly in the olefin industry chain, where China still relies on imports for polyethylene (PE), ethylene glycol, and styrene [2] - In 2024, China's net import volume of polyethylene is expected to reach 13.03 million tons, with a dependency rate of 33% [2]