Jiangsu Eastern Shenghong Co.,Ltd.

Jiangsu Eastern Shenghong Co., Ltd. is a leading energy and chemical enterprise based in China, specializing in the manufacturing of petrochemicals, new chemical materials, and polyester chemical fibers. The company operates as a core subsidiary of Shenghong Holding Group Co., Ltd., a Fortune Global 500 company. Established in 2000, Jiangsu Eastern Shenghong was listed on the Main Board of the Shenzhen Stock Exchange in 2018, following a restructuring that positioned it as the primary operating entity for Shenghong Group's chemical fiber assets. The company has a diversified industrial presence with operations centered in Jiangsu Province, including Lianyungang, Suzhou, and Suqian. It manages over 50 subsidiaries, including notable entities such as Shenghong Refining & Chemical and Jiangsu Sierbang Petrochemical. Jiangsu Eastern Shenghong has developed a vertically integrated industrial chain that encompasses refining, petrochemicals, and high-value fine chemicals, with a focus on innovation in new energy and materials. The company aims to enhance its market position through strategic expansions and technological advancements, including initiatives in artificial intelligence and sustainable product development.

(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 landscape featuring the coordinated extension and development 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. The Shenghong Refining & Chemical Integration Project, as a basic raw material platform, has the largest single-unit atmospheric and vacuum distillation device in China. Adhering to the concept of "more chemicals, less oil, molecular refining", it produces 70% chemical products, aligning with the current development trend of the petroleum refining industry and allowing flexible adjustment of product structure based on market conditions. The ultra-large-scale and integrated layout of the Shenghong Refining & Chemical Integration Project brings cost advantages, providing the Company with a natural first-mover advantage in "strengthening, extending, and supplementing the industrial chains" the downstream fine chemical industry chain. In the future, the Company will firmly establish the "1+N" development model, with "1" core platform and "N" diversified industrial chains in new energy & new materials, electronic chemicals, and biotechnology, ensuring steady progress on the path of high-quality development. (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 olefin downstream high value-added products, and has developed into a leading fine chemical and new materials enterprise in China. In the field of photovoltaic new materials, the Company is one of the few domestic leaders with independent R&D technology and large-scale production facilities for both photovoltaic-grade EVA and POE films. Product performance indicators have reached the advanced level of international counterparts, and several new technology products have achieved import substitution, filling domestic gaps. In the field of high-value-added new materials, products such as PETG, nitrile latex, EC/DMC, POSM, and polyols have been successfully started up for the first time. By the end of 2025, the Company had successfully launched an additional 400,000 tons/year EVA capacity and 100,000 tons/year POE capacity, further expanding its new energy and new materials industry matrix. Over the years, the Company has focused on the research and development of civilian polyester filament products. It owns independent intellectual property in various functional fiber production technologies, has overcome technical barriers in ultra-fine fiber production, and has established a world-leading industrial chain with complete intellectual property for bio-based PDO monomers, PTT fibers, and recycled polyester fibers. The Company has built the world's first green product industrial chain "from carbon dioxide to polyester fibers". Through scientific and technological innovation, the Company has made fruitful scientific achievements in products, processes, and equipment. As of the end of 2025, the Company had 844 patents, including 299 invention patents, 522 utility model patents, 9 appearance patents and 14 international patents. (III) Advantages of differentiated competition The integration project of Shenghong Refining & Chemical is the Company's basic raw material platform, featuring the largest single set of atmospheric and vacuum distillation units in China. It was designed for feasibility with an optimal oil-to-chemical ratio, focusing on ethylene and downstream olefin chemical products as the main product direction. With over 70% chemical product output, it is the industry's highest designed oil-to-chemical ratio. The refining production process allows for interconnection and mutual supply of materials, enhancing resource utilization and providing competitive product structure and costs in the industry. Sierbang Petrochemical is an important production base for the Company's new energy and new materials. It has experience in successfully operating large-scale olefin chemical projects. Its MTO device ranks among the largest globally, and its supporting devices for acrylonitrile, MMA, EVA, EO, and derivatives have leading capacities in the industry, influencing regional product pricing. In the field of polyester chemical fiber, the Company adheres to the idea of "avoiding repetitive capacity expansion, conventional products and conventional production technologies," and is rooted in a differentiated competition strategy and mainly in high-end DTY products. It focuses on the development and production of ultra-fine fiber and differentiated functional fiber, with product differentiation rate of more than 90%. It mainly focuses on the development of recycled fiber green low-carbon products, to effectively avoid the fierce market competition for conventional chemical fiber products. (IV) Advantages of collaborative development The Company has a high self-supporting rate for refining, new energy & new materials and polyester. Since Shenghong Refining & Chemical's integration project is put into operation, the Company has realized self-supply of upstream PX and ethylene glycol raw materials of polyester chemical fiber, and its upstream and downstream product structure will be very reasonable. 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. From the perspective of refining and chemical industry layout, the Company has integrated large-scale raw material capacities, including 16 million tons/year refining and chemical integration, 2.4 million tons MTO, 700,000 tons/year PDH, and 6.3 million tons/year PTA, within the same industrial park. Large-scale devices are interconnected through park pipelines, significantly reducing transportation, storage, and other intermediate costs. (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.