Jiangsu Eastern Shenghong Co.,Ltd.

Company Profile

(I) Advanced advantages of industrial layout The Company has been deeply engaged in the field of petrochemical and new chemical materials and polyester chemical fiber for many years, and has formed an industrial pattern of "double chains" of olefins and aromatics, and has become a unique large-scale energy and chemical enterprise with full coverage of "oil head, coal head and gas head" in China. Shenghong Refining & Chemical Integration Project applies to the idea of "less oil and more chemicals for molecular refining", which meets the current development trend of petroleum refining and chemical industry. Meanwhile, the Shenghong Refining & Chemical Integration Project, as a basic raw material platform, has the natural first-mover advantage of "strengthening, extending and supplementing the chain" to the downstream fine chemical industry. The Company will rely on the "1+N" development strategy that combines "1" core platform and "N" diversified industrial chains such as new energy, new materials, electronic chemistry and biotechnology, so as to ensure stable and long-term high-quality development to get on track. (II) Advantages of innovation-driven development The Company has been deeply engaged in the new chemical materials industry for more than 10 years, and has many years of experience in the production and management of high value-added olefin downstream products, and has developed into a leading fine chemical and new materials enterprise in China. In the field of new photovoltaic materials, the Company is one of the few domestic suppliers of photovoltaic film materials with both photovoltaic-grade EVA and independent POE technology, its product performance index has reached the advanced level of similar products in the world, and a number of its new technology products have realized import substitution and filled the gaps in the domestic market. In June 2025, at the 12th Photovoltaic Polymers International Conference held in Shanghai, Petrochemical Industry Group, a wholly owned subsidiary of the Company, won the "Outstanding Supplier Award for Photovoltaic Film Particles", in recognition of its effective improvement of overall quality and guarantee of stable downstream supply by virtue of its product innovation advantages. In the field of high value-added new materials, UHMWPE, PETG,CHDM, NBRL, EC/DMC, POSM, polyols and other products have achieved the one-time success in project start-up. In the first half of 2025, the Company's annual EVA production capacity increased by 400,000 tons, further expanding the Company's industry matrix in new energy and new materials. Over the years, the Company has attached great importance to the research and development of civilian polyester filament products, and has possessed independent intellectual property rights in the production technology of various functional fibers. It has successively overcome technical barriers in microfiber, and built a world-leading industrial chains for bio-based PDO monomers, PTT fibers and recycled polyester fibers with complete intellectual property rights. It has built the world-leading industrial chain "from carbon dioxide to polyester fiber", and continuously develops the industrial chain for renewable fiber made of fiber produced with waste bottles, to lead the green and low-carbon transformation development of the textile industry. The Company attaches great importance to and constantly promotes the construction of key links in the research and development of the transformation of innovation chain into industrial chain. In the first half of 2025, the advanced functional fiber pilot-test platform built by Jiangsu New Vision Advanced Functional Fiber Innovation Center Co., Ltd., a subsidiary of the Company, was included in the list of the first batch of key cultivation pilot-test platforms of the Ministry of Industry and Information Technology. In addition, the Company's new material pilot-test base in the National East-West Regional Cooperation Demonstration Zone in Lianyungang Petrochemical Industrial Park is also under construction as planned, in order to assist in making breakthroughs and innovations in key technical problems in the chemical field and further strengthen the Company's innovation-driven advantage. (III) Advantages of differentiated competition Shenghong Refining & Chemical integration project as the basic raw material platform of the Company, is equipped with the largest single set of atmospheric and vacuum distillation unit in China. It is designed based on the strategy with the optimal oil-to-chemical ratio, and takes downstream ethylene and olefin chemical products as main products, with the output of chemical products exceeding 70%, becoming the refining and chemical project with the highest oil-to-chemical ratio in the industry. All production links in the refining and chemical project can achieve material interconnection and mutual supply, enhancing resource utilization efficiency and thus making it competitive in terms of product structure and cost. Sierbang Petrochemical, as an important production base of new energy and new materials of the Company, has the experience advantage in successfully operating large-scale olefin chemical projects. The monomer scale of MTO units that have been put into operation ranks among the top of the world in terms of existing MTO units, and the capacities of supporting units of acryonitrile, MMA, EVA, EO and derivatives rank among the top in the industry, which has an influence on regional product pricing. In the field of polyester fiber, the Company, adhering to the idea of "no repeated construction, no conventional products, no conventional production technologies", is rooted in the dislocation competition strategy. The Company, taking high-end DTY products as main products, mainly engages in the development and production of microfibers and differentiated functional fibers, with a product differentiation rate of more than 90%; it pays attention to the development of green and low-carbon products such as recycled fibers and carbon capture fibers to effectively avoid the fierce market competition of conventional chemical fiber products. (IV) Advantages of collaborative development The Company has a high self-supporting rate for refining, new energy materials and polyester. After Shenghong Refining & Chemical Integration project is put into operation, the Company realized self-supply of upstream PX and ethylene glycol raw materials of polyester chemical fiber, and reasonable structure upstream and downstream product. Petrochemical enterprises and their downstream products in the Lianyungang Petrochemical Industry Base have a high digestion proportion of refined and chemical products, and the efficient coordination and supporting advantages of regions, products and production processes bring cost advantages. In the future, the refining and chemical, new energy and new materials sectors, and polyester business will fully coordinate the development of high-performance, high-value-added materials and their modified applications, to provide broad space for the industrial chain to further collaborative development to the downstream. (V) Location advantages The Company's petrochemical and new chemical materials business is located in the Lianyungang Petrochemical Industry Base. The Lianyungang Petrochemical Industry Base is located in Xuwei New District, Lianyungang City. It is one of the seven world-class petrochemical industry bases in China, and has been included in the national "Petrochemical Industry Planning and Layout Scheme". Lianyungang area has suitable climate and no typhoon influence. The park and surrounding facilities are excellent and close to the target market. Material costs are low. In addition, the park is close to the seaport terminal, and the processed imported crude oil has a unique maritime advantage, low transportation costs and a significant location advantage.