Chemical Operations

Profit hit historic high. We produced 11.51 million tonnes of ethylene, 4.76 million tonnes of PX, increased by 140,000 tonnes, synthetic resin 16.24 million tonnes, up by 30,000 tonnes, synthetic rubber 1.18 million tonnes, up by 80,000 tonnes, synthetic fiber polymers 3.19 million tonnes, increased by 50,000 tonnes, and fine chemicals 580,000 tonnes (excluding joint ventures production), up by 7,000 tonnes.

Cost efficiency targets were accomplished completely. Comprehensive energy consumption per 10,000 yuan output value from the listed business was reduced by 1.96%. The all-in cost per tonne of product was 33 yuan lower than our annual target.

Structural optimization was steadily made across the whole business. We optimized the feedstock structure, reaching an annual ethylene-related products yield of 66%, flat with last year. We reduced the cost per tonne of ethylene feedstock by 25 yuan, translating to 290 million yuan of cost reduction. We optimized the product mix, increased the portion of new synthetic resin products and specialties by 1.3 percentage points, improved the high-value added synthetic rubber products production ratio by 1.6 percentage points, and elevated differentiation ratio of synthetic fibers by 1.4 percentage points. We also produced 80,000 tonnes of new fine chemicals with high added value. We optimized facility operations, scheduled periodical turnaround, and reduced loss by 175 million yuan. We also increased external sales of ethylene and increased profit by nearly 100 million yuan.

Coal chemicals witnessed sound continuous development. For the Ningxia energy and chemical project, we commissioned and reached the production capacity of Yinxing No.2 coal mine, completed the first annual overhaul and debottlenecking, and produced 1.4019 million tonnes of chemicals and 1.215 million tonnes of raw coal. For the Zhongtian Hechuang project, we achieved the target methanol production volume and MTO commissioning volume even if it was the first year of full operation. We have accumulatively produced 4 million tonnes of MTO ethanol, 1.27 million tonnes of polyolefin products and 12.55 million tonnes of raw coal. The engineering construction and production preparation of the Zhongan Lianhe project was pressed ahead fast with mechanical completion expected soon. Breakthrough was made in the preliminary work for the Guizhou Energy and Chemical project, and construction of the supporting coal mine resumed. Work for the Xinjiang coal to gas project was executed smoothly.

We will develop the business with speed and high quality. Batches of projects were completed and put into production, adding 410,000 tonnes of new production capacity annually. Key engineering projects were promoted in order.