恒逸石化:2023AnnualReport

Section IImportant notes, Contents and Definitions
The Board of Directors, the Supervisory Committee and the Directors,
Supervisors and senior management of the Company warrant that the contents of
the annual report are true, accurate and complete, and that there are no false
records, misleading statements or material omissions, and that they shall bear
individual and joint legal liabilities.
Qiu Yibo, legal representative, Zheng Xingang, person in charge of accounting
activities, andYu Zhicheng, thehead of theaccounting agency (accountin charge),
declared that ensure the annual financial statement report is true, accurate and
complete.
The annual financial statement report has been audited by Zhongxinghua
Certified PublicAccountants LLP, which has issued a standard unqualified audit
report.
Thereporthas been considered and approved attheEighthMeetingof theTwelfth
Session of the Board of Directors of the Company.All directors have attended the
Board meeting at which this report was considered.
This report involves future plans, development strategies, industry discussion and
outlook, etc. covered in this report do not constitute substantial commitments by
the company to investors, and investors are advised to pay attention the
investment risks. Investors are advised to refer to "XI: Prospects for the Future
Development of the Company IV: Risks and Countermeasures Faced by the
Company" under “Section III”: Management Discussion and Analysis" for the
risks that may exist in the operation and development of the Company.

The Company is required to comply with the disclosure requirements in respect
of the chemical industry as set out in the "No. 3 Self-Regulatory Guidelines for
Listed Companies of the Shenzhen Stock Exchange - Disclosure of Industry
Information".
The Company's profit distribution plan reviewed and approved by the Board: on
the basis of the share capital entitled to profit distribution registered on the date
of registration of shareholdings for the implementation of the equity distribution,
a cash dividend of RMB 1.0 (tax included) per 10 shares will be distributed to all
shareholders. There will be no equity dividend (tax included) or conversion of
equity reserve into share capital of the Company.
This annual report is prepared in Chinese and English respectively. In case of any
discrepancy between the two versions, the Chinese version shall prevail.

Contents

Section I Important notes, Contents and Definitions ...... 4
Section II Company Profile and Key Financial Indicators...... 11
Section III Management Discussion and Analysis ...... 18
Section IV Corporate Governance...... 129
Section V Environmental and Social Responsibilities ...... 191
Section VI Important Matters...... 212
Section VII Changes in Shares and Shareholders ...... 242
Section VIII Preferred Shares...... 259
Section IX Bonds ...... 260
Section X Financial Report...... 273
List of Documents for Reference
1. Accounting statements signed and stamped by the legal representative, person in
charge of accounting activities and the head of the accounting agency;
2. The original audit report stamped by the accounting firm and signed and stamped by
the certified public accountant;
3. All original documents and original announcements of the Company publicly
disclosed on the website designated by CSRC during the current period.

Definitions
Item Refers to Definition
Hengyi
Petrochemical/Company/the Refers to Hengyi Petrochemical Co., Ltd.
Company
SZSE/the Exchange Refers to Shenzhen StockExchange
Hengyi Group Refers to Zhejiang Hengyi Group Co., Ltd.
Hengyi Limited Refers to Zhejiang Hengyi Petrochemical Co., Ltd.
Hengyi Brunei Refers to Hengyi Industries Sdn. Bhd.
Zhejiang Yisheng Refers to Zhejiang Yisheng Petrochemical Co., Ltd.
Yisheng NewMaterials Refers to Zhejiang Yisheng New MaterialsCo., Ltd.
Yisheng Dahua Refers to Yisheng Dahua Petrochemical Co., Ltd.
Hainan Yisheng Refers to HainanYisheng Petrochemical Co., Ltd.
Hengyi Polymer Refers to Zhejiang Hengyi Polymer Co., Ltd.
Hengyi High-Tech Refers to Zhejiang Hengyi High-Tech MaterialsCo., Ltd.
Haining New Materials Refers to Haining Hengyi New Materials Co., Ltd.
HainingThermal Power Refers to HainingHengyi Thermal PowerCo., Ltd.
Taicang Yifeng Refers to TaicangYifeng Chemical FibreCo., Ltd.
JiaxingYipeng Refers to JiaxingYipeng Chemical Fibre Co., Ltd.
Shuangtu NewMaterials Refers to Zhejiang Shuangtu NewMaterials Co., Ltd.
Hangzhou Yichen Refers to Hangzhou Yichen Chemical FibreCo., Ltd.
Suqian Yida Refers to Suqian Yida NewMaterials Co., Ltd.
Ningbo Hengyi Trading Ref