Rongsheng Petro Chemical Co., Ltd.

Rongsheng Petrochemical Co., Ltd. is a leading enterprise in the petrochemical-polyester industry based in Hangzhou, China. Established in 2010 and listed on the Shenzhen Stock Exchange, the company operates an integrated industrial chain encompassing oil refining, petrochemical production, and the development of new polyester materials. With a workforce of nearly 20,000 employees, Rongsheng Petrochemical is equipped with advanced facilities, including a high-tech R&D center and various research workstations. The company's main business lines include the research, production, and sale of petrochemical and polyester-related products. It has developed a comprehensive industrial chain that spans from crude oil to polyester products, including polyester chips, films, and various spinning products. Rongsheng Petrochemical's subsidiaries, such as Zhejiang Petrochemical Co., Ltd., are involved in large-scale refining and chemical integration projects, enhancing the company's vertical integration across the polyester value chain. The strategic location of its production bases along China's eastern coastline facilitates efficient transportation and access to key markets, supporting its competitive position in the industry.

1. Complete industrial synergistic advantage After years of development and improvement, the Company has seized the opportunity of industrial adjustment, achieved rapid growth, and formed the development strategy of “from a drop of oil to everything in the world”. Through the extension of the industrial chain, the Company has effectively reduced the business cost, realized the mutual support of upstream and downstream sectors, and also improved its sustainable profitability and risk resistance. Building upon the complete polyester industry chains of its controlling shareholder Rongsheng Petrochemical and participating shareholder Tongkun Group, ZPC has successfully bridged the final gap in the full-process integration from “a drop of crude oil to a strand of fiber”, establishing formidable vertical integration advantages across the polyester value chain while developing strong synergistic effects with shareholders in other industrial chains. The interconnection of Zhoushan Green Petrochemical Base and Ningbo Petrochemical Base can realize the coordinated development of both Ningbo and Zhoushan bases, and pipeline transportation greatly reduces the risk and cost of ship transportation and land transportation; A large number of light hydrocarbon raw materials by-products from Ningbo Petrochemical Base are transported to Zhoushan Green Petrochemical Base through pipelines, which can be used as high-quality ethylene raw materials. Surplus oil products from Zhoushan Green Petrochemical Base can be transported to Ningbo Petrochemical Base as high-quality raw materials for aromatic hydrocarbon production. The construction of ZPC Project has supporting facilities that can meet the demand of crude oil supply in the two phases of the project. The total storage capacity of Mamu crude oil depot and Yushan Island crude oil depot has reached 4.6 million m³, which is the largest storage capacity among domestic refining and chemical facilities. As the most concentrated resource allocation base for oil and gas enterprises in China, Zhejiang free Trade Zone has an oil depot capacity of more than 30 million m³, including Cezi Island and Waidiao Island. Most of the oil pipeline networks are interconnected, making local transportation available. 2. Remarkable location advantage The Company’s production bases are located along the eastern coastline of China, including the “Circum-Bohai Sea Economic Zone” in Dalian City, Liaoning Province; and “Yangtze River Delta Economic Circle” in Ningbo City, Zhejiang Province; the “Belt and Road Economic Belt”; and the “Maritime Silk Road” in Haikou City, Hainan Province. Each production base of the Company is adjacent to high-quality ports, connected with canals and equipped with complete wharf facilities. The main raw materials and other auxiliary raw materials required for production can be unloaded and stored at the chemical material wharf built or rented by the Company, which has provided convenient transportation of bulk raw materials and inventory adjustment. ZPC Project is located in the concentrated consumption area of oil products and chemical products, with the key products marketable. The target market of chemical products is mainly East China and South China, where the economy is the most developed with the most active downstream consumption market for petrochemical products, and whose related industries such as downstream plastic product processing industry, light industry and daily chemical industry are developed, with strong market acceptance for bulk petrochemical products. Refined oil has many sales channels and enjoys strong policy support and obvious competitive advantages. The Ministry of Commerce officially approved granting ZPC the export qualification of non-state-owned trade refined oil. As the first private refining and petrochemical enterprise to obtain export permission, ZPC took the lead in opening sales channels in Southeast Asia. In the face of the excess supply of domestic refined oil, this export permission given to ZPC has become more valuable. 3. Excellent strategic layout advantages As one of the leading private petrochemical companies, the Company possesses inherent strong market sensitivity and flexible decision-making mechanism. It can not only keep a close eye on the market, but also make timely and accurate adjustments to the strategy and seize the preemptive opportunities of the market under its own mechanism advantages of fast pace and few links. The management has a keen sense of investment, accurate timing for project operation and excellent investment and financing capacity. The Company started from polyester chemical fiber, and after years of development, it has formed a good foundation. With the full-scale operation of the 40 million tons/year refining and chemical integration project of its subsidiary in early 2022, ZPC has become the largest single refinery in the world. Relying on the platform of 40 million tons/year refining and chemical integration project of ZPC, which is the largest single refinery in the world, the Company has accelerated the layout of downstream new chemical materials, aimed at the field of new energy and high-end materials, and has deployed a number of new energy and new material products such as EVA, POE, DMC, PC and ABS, continuously enriching its product chain. With the steady progress of new projects, the Company’s production capacity of new energy materials, renewable plastics, special synthetic materials, and high-end synthetic materials will be expanded in an orderly manner, and the transformation of new materials will be gradually accelerated. 4. Strong research and development and innovation advantages The Company upholds a technological research and development pattern driven by both independent innovation and cooperation. It has established many world-class research and development platforms, including a high-tech research and development center, a workstation for academicians and experts, an enterprise technology center, and a post-doctoral science and research workstation. Moreover, it engages in active technology exchanges and discussions and promotes industry-university-research collaboration to acquire resources from universities, the community, and the Company. With all sectors of society, it jointly promotes its research capability and technological advancement and together create an innovation ecosystem that is open, healthy, and cooperative, where everyone can benefit. In recent years, the Company has continuously promoted scientific research cooperation with domestic and foreign countries and increased its research and development investment year by year to maintain a leading level in the industry. The Company’s main manufacturing subsidiaries are all national high-tech enterprises with strong research and development strength and rich process operation experience accumulated during long-term production management, which have gathered the strength of “production, learning, research and use” at home and abroad, carried out research and development with independent innovation, and established an integrated achievement improvement platform for laboratory innovation, small test, pilot test and industrial demonstration production, and overcome the disadvantage that it is difficult to incubate and transform related achievements although with basic research by other research institutes in China relying on the Company’s flexible system and mechanism and complete industrial chain advantages, breaking through the final ceiling from scientific research achievements to industrial promotion and application, boosting industrial technological innovation and upgrading, seizing the technologically leading position, and promoting the Company’s high-quality development in the terms of technological independence, raw material diversification, high-end products, green production and intelligent industry.