I. Important Notes
This summary is derived from the full annual report. For a comprehensive understanding of the company's operating results, financial position, and future development plans, investors should read the full annual report on the media designated by the China Securities Regulatory Commission.
All directors attended the board meeting to review this report.
Non-standard Audit Opinion
Applicable
Zhongxingcai Guanghua Certified Public Accountants (Special General Partnership) issued a qualified audit opinion for the company. The company's Board of Directors and Board of Supervisors have provided detailed explanations regarding the relevant matters; investors are advised to read them carefully.
Profit distribution or capital reserve conversion plan reviewed by the Board of Directors
Not applicable
The company plans not to distribute cash dividends, not to issue bonus shares, and not to convert capital reserves into share capital.
Profit distribution plan for preferred shares reviewed by the Board of Directors
II. Company Profile
1. Company Overview
| Stock Abbreviation | ST Shihua | Stock Code | 000637 |
|---|---|---|---|
| Stock Exchange | Shenzhen Stock Exchange | ||
| Former Stock Abbreviation | Maohua Shihua | ||
| Contact Information | Board Secretary | Securities Affairs Representative | |
| Name | Ma Yongxin | Zhang Ronghua | |
| Office Address | 162 Guandu Road, Maoming, Guangdong | 162 Guandu Road, Maoming, Guangdong | |
| Fax | 0668-2899170 | 0668-2899170 | |
| Telephone | 0668-2276176 | 0668-2246331 | |
| mhsh000637@163.net | mhsh000637@163.net |
2. Main Business or Product Introduction
The company's main business is the production and sale of chemical products. Key products include polypropylene, liquefied petroleum gas, special white oil, ethanolamine, isobutane, methyl tert-butyl ether (MTBE), C9 fraction, and hydrogen peroxide. Major production facilities include a 160,000-ton/year polypropylene unit, a 60,000-ton/year special white oil unit, a 20,000-ton/year ethanolamine unit, an 80,000-ton/year MTBE unit, a 140,000-ton/year cracked C9 and cracked tar comprehensive utilization project, and a 300,000-ton/year hydrogen peroxide unit. Additionally, the company operates cultural and entertainment projects, with the Beijing Aquarium operated by its holding subsidiary, Beijing Xinwoda Ocean Technology Co., Ltd.
In the first half of 2023, domestic travel and consumption gradually recovered, and terminal demand improved. Driven by various national policies, the industry's fixed asset investment ratio increased significantly, making petrochemicals a key industry for national economic policy implementation. In the second half of 2023, global geopolitical uncertainties and aggressive interest rate hikes by Western nations under inflationary pressure interrupted the overall economic recovery, suppressing terminal demand. Insufficient global economic growth momentum, supply-demand mismatches in international energy markets, and market volatility significantly impacted China's chemical exports.
Industry reports indicate that global energy prices fell in 2023, with oil prices dropping nearly 20% and natural gas and coal prices falling over 50%, which helped control global inflation. Although the cost pressure on the petrochemical industry eased somewhat in 2023, global terminal market demand recovery was far below expectations. Consequently, lower costs provided little relief to the sluggish downstream product market. It is foreseeable that the recovery path for the global petrochemical industry in 2024 will not be smooth. However, with the continued recovery of the economy and market demand, the terminal chemical product market is expected to maintain a slow upward trend.