2025 Annual Report

12025 Annual Report of Hengyi Petrochemical Co., Ltd.22025 Annual ReportSection I Important notes, contents and definitionsThe Board of Directors, the Supervisory Committee and the Directors and seniormanagement of the Company warrant that the contents of the annual report aretrue, accurate and complete, and that there are no false records, misleadingstatements or material omissions, and that they will severally and jointly acceptlegal responsibility for such contents.Qiu Yibo, Chairman of the Company, Zheng Xingang, the person in charge ofaccounting work, and Gong Yanhong, the head of the accounting agency(accounting supervisor), declared to ensure the annual financial statement reportis true, accurate and complete.All directors have attended the Board meeting at which this report wasconsidered.The forward-looking statements contained in this report regarding future plans,development strategies, industry discussions, and outlook do not constitutesubstantive commitments from the Company to investors. Investors are herebyadvised to exercise caution regarding investment risks. Investors are advised torefer to “Section III: Management Discussion and Analysis”, specifically "XI.ProspectsfortheFutureDevelopmentoftheCompany(IV)RisksandCountermeasures Faced by the Company."The Company is required to comply with the disclosure requirements in respectof the chemical industry as set out in the "No. 3 Self-Regulatory Guidelines forListed Companies of the Shenzhen Stock Exchange - Disclosure of IndustryInformation".2025 Annual Report of Hengyi Petrochemical Co., Ltd.3The Company's profit distribution plan reviewed and approved by the Board: onthe basis of the share capital entitled to profit distribution registered on the dateof registration of shareholdings for the implementation of the equity distribution,a cash dividend of RMB 0.50 (tax included) per 10 shares will be distributed toall shareholders. There will be no equity dividend (tax included) or conversion ofequity reserve into share capital of the Company.This annual report is prepared in Chinese and English respectively. In case ofany discrepancy between the two versions, the Chinese version shall prevail.2025 Annual Report of Hengyi Petrochemical Co., Ltd.4ContentSection I Important notes, contents and definitions.......................................................2Section II Company Profile and Key Financial Indicators..........................................10Section III Management Discussion and Analysis...................................................... 19Section IV Corporate governance..............................................................................103Section V Important Matters......................................................................................162Section VI Changes in Shares and Shareholders........................................................ 219Section VII Bonds..........................................................................................