恒力石化:恒力石化2022年度社会责任报告（英文版）

Table of Contents
01 About this Report
03 Message from the Chairman
05 Sustainable Management
97 Index of the Indicators
102 Reader's Feedback Form
Overview Governance In-depth Efforts Synergy Supporting Giving Back
About Us Consolidating Lead the Brand in Achieving Empower Our Partners Green Development to the Society to Fulfill
Foundation of Leap-forward Development Public Responsibility
Development
Company Profile 11 Compliant Operation 23 Scientific and Technological Innovation 33 Supply Chain Management 43 Environmental Management 71 Building a Harmonious Community 91
Business Layout 13 Investor Relations Management 25 IP Protection 35 Customer Service 45 Treatment of Three Wastes 73 Supporting Healthcare and Education 93
Milestones in 2022 17 Internal Control 26 Digital Intelligence Development 35 Industry Cooperation 48 Resource Saving 79 Volunteer Activities 96
Achievements and Rewards 19 Anti-corruption and 27 Quality Assurance 38 Employee Growth 62 Green Design 85
Integrity Upholding Information Security 39 Work Safety 63 Low-carbon Operation 87
Party Building 2801 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 02
AAbboouutt tthhiiss RReeppoorrtt
This is the 2nd corporate social responsibility report issued by Hengli Source of Information Preparation Basis
Petrochemical Co. Ltd. to the stakeholders. This Report discloses
The information disclosed in this Report comes from internal 2030 Sustainable Development Goals of the United
the practices and performance of Hengli Petrochemical Co. Ltd. in
official documents statistical reports and annual reports of Nations (SDGs)
economy environment society corporate governance and other
Hengli Petrochemical Co. Ltd. Sustainability Reporting Standards (GRI Standards)
responsibility fields in 2022. With this Report we want to communicate
The data disclosed in this Report comes from the original Global Sustainability Standards Board
with stakeholders and to respond to the expectations and requirements
data on actual operations of Hengli Petrochemical Co. Ltd. Guidelines on Corporate Social Responsibility
of stakeholders in a systematic manner.pubic data published by government authorities annual Reporting for Chinese Enterprises (CASS-ESG 5.0)
financial data relevant internal statistics reports third-party Chinese Academy of Social Sciences
Period of Time questionnaires and third-party evaluation interviews etc. Guidance on Social Responsibility Reporting (GB/
The financial data in this Report are in RMB. In case of any T36001-2015) National Standard of the People 's
The period is from January 1 2022 to December 31 2022 inconsistency with the financial report the financial report Republic of China
and extends beyond the foregoing scope for some content to shall prevail. ISO 26000: Guidance on Social Responsibility (2010)
enhance the comparability and forward-looking of this Report. the International Organization for StandardizationThe
Guidel ines on the Sel f-Regulat ion Rules for
Abbreviations
Scope of Report Companies Listed on the Shanghai Stock Exchange
Hengli Petrochemical Co. Ltd. ("Hengli Petrochemical" the No. 1 - Compliant Operation the Shanghai Stock
The Report discloses the responsibility information and typical "Company" "we" or "us") Exchange
cases of Hengli Petrochemical Co. Ltd. and its subsidiaries to Hengli Group Co. Ltd. ("Hengli Group") Report Access
fulfill economic social and environmental responsibilities. Jiangsu Hengli Chemical Fiber Co. Ltd. ("Hengli Chemical Fiber")
Kanghui New Material Technology Co. Ltd. ("Kanghui New This Report is available electronically at the website
Material") of the Company (www.hengliinc.com) or Shanghai Notes on this Report
Jiangsu Hengke New Material Co. Ltd. ("Hengke New Material ") Stock Exchange (http://www.sse.com.cn). In case
This Report is prepared in both Chinese and English. In case Hengli Petrochemical (Dalian) Chemical Co. Ltd. ("Hengli of any questions or suggestions about this Report
of any conflict between the two versions the Chinese version Petrochemical Chemical") please send an email to hlzq@hengli.com or call
shall prevail. Hengli Petrochemical (Dalian) Refining Co. Ltd. ("Hengli 0411-86641378.Petrochemical Refining")
Hengli Petrochemical (Dalian) Co. Ltd. ("Hengli Petrochemical
(Dalian)")
Jiangsu Deli Chemical Fiber Co. Ltd. ("Deli Chemical Fiber")
Suzhou Susheng Thermal Power Co. Ltd. ("Susheng Thermal
Power")
Hengli Futures Co. Ltd. ("Hengli Futures")03 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 04
MMeessssaaggee ffrroomm tthhee CChhaaiirrmmaann
The year 2022 has flown by in just the blink of Hengli is well aware that the long-term sustainable development effective disclosure of major information to our stakeholders.an eye. cannot be achieved without good environmental management and Hengli attaches great importance to integrity anti-corruption
resource management. Since its establishment we have adhered to and Party building making constant efforts to strengthen
It is the year when humanity experienced the the idea of building a "green eco-friendly and harmonious Hengli" internal control management reporting management
deepest economic cycle adjustment since devoting ourselves to improving the efficiency of resource utilization and anti-corruption measures and launch its own Party
the 21st century. China's economy overcome and exploring the innovative green development model. We take building so as to promote our long-term development with
massive difficulties against all odds. Hengli it as our mission to build a resource-saving and environmentally concrete actions.Petrochemical as a leading private enterprise friendly company.in China also delivered an impressive "Fear not the strong pass iron-clad on all sides! The summit 's
performance under the dual challenges We are also convinced that public welfare is not only an unshirkable now surmounted with big strides." In light of new changes in
posed by changes in the international responsibility of a company; it is also a necessity for achieving long- this new cycle Hengli Petrochemical will keep up its work to
landscape and pandemic control within the term sustainability. We are committed to promoting harmony with build itself as a global benchmark company while setting a good
country. local communities. We have carried out various types of activities example of greenness kindness and fairness for the society.so that we grow together with the surrounding communities and
Over the two decades from 2002 to 2022 create benefits for all.we have worked hard to achieve the whole
industrial chain development featuring While we prioritize high-quality development we also look forward
"platform + new materials" from "a drop of to growing together with our partners. Hengli is committed to Chairman Fan Hongwei
oil" to "a piece of yarn" and from "a drop of oil" achieving efficient and sustainable production and operation
to "a roll of film". We have always focused on through supply chain optimization and collaboration while actively
main business and started from the polyester promoting industry development so that our customers can be
fiber industry. In the process of growth we offered better products and services. We also value staff training
successfully shattered the "bottlenecks" one by and development helping our staff gain constant growth in their
one and make continuous efforts to develop work as an effort to add momentum to corporate and industry
new material industries such as fiber film and development and unleash greater value to the society.plastic while moving towards the integrated
platform of upstream petrochemical refining We have also continued to improve our capabilities of corporate
and coalchemical hence creating a systematic governance. We strictly abide by laws regulations and industry
industry pattern featuring a "major chemical norms having formulated a rigorous and standardized internal
platform" and "expansion to new materials". control system. We hold shareholder events to enable timely and05 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 06
SSuussttaaiinnaabbllee MMaannaaggeemmeenntt
Communication with Stakeholders
We attach great importance to the communication with our internal and external stakeholders through multiple channels to
have an in-depth understanding of demands and expectations from stakeholders win their trust and support and promote
the continuous improvement of social responsibility management.Government
Shareholders Customers Employees Partners Industries Environment Community and regulatory and the public
authorities
Legally compliant operation Legally compliant operation Innovation and R&D Employment and development Supply chain management Innovative development Low-carbon operation Social welfare
Stable performance growth Observance of regulatory High-quality products Safety and welfare Honest and friendly cooperation Common growth Green design Rural revitalization
Protection of shareholder interests requirements After-sales service Anti-corruption Intelligent manufacture
Full information disclosure Response to national
Investor relations management development policies
Compliance with business ethics
Compliant operation Compliance with laws and Continuous technological Protection for employees ' Responsible procurement process Participation in Environmental stewardship Co-building of village
Sound risk management regulations innovation rights and interests Supplier evaluation industrial communication Treatment of three wastes and enterprise
Information disclosure Cooperation with Comprehensive quality Comprehensive salary policy Supplier training Promotion of standard formulation Resource saving Social welfare donation
Smooth investor regulatory inspections management Diversified training courses Establishment of strategic Green design Volunteer services
communication channel Information disclosure High-quality and efficient service Abundant employee activities cooperation Low-carbon office
Enhancement of integrity Adherence to leading role of
supervision Party Building
Promotion of common prosperity
Expectations and Communication
Stakeholders requirements and response07 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 08
Selection of Substantive Issues
To respond to the expectations of stakeholders in a better manner in this Report we
identified and assessed substantive issues to decide on substantive issues that are Our commitments Work highlights
significant to both the Company and stakeholders as key points for disclosure and
response in this Report.Adhere to safety in production and RMB 429 million invested in work safety
be responsible for humankind and 237 times of safety training
environment 337 safety administrators
Protection for rights of community Safety in Maintain 100% employee safety
residents production Supply chain management training coverage rate
Implement green and sustainable RMB 1.185 billion invested in science and
Social welfare donation High-quality customer service strategies to offer green and high- technology R&D
quality products and services for 3128 science and technology R&D personnel
society 261 newly granted patents
Volunteer services Technological innovation
Value and respect every people 23% of female employees
Employee growth Digital intelligence development and Society information safety Respect the culture traditions RMB 0.939 million of the
and beliefs of the community and total social donations
the engagement and information Cash donation to the
rights of community residents and society by Hengli Group
value their concerns and properly totals RMB 108 million.address their reasonable demands
Responsible procurement RMB 248 million invested in Sustainable
Build smart and green logistics and environmental protection Development
Corporate recycle and dispose of wasters in a Use of 75.077 million kwh
Environment governance responsible manner renewable energy Goals
Pay attention to the needs of 0 pollution accident disputes
investors customers contractors and
General meeting board of directors and other related parties and take the Environmental management system board of supervisors initiative to accept social supervision
to achieve continuous improvement
Treatment of three wastes Internal control Comply with laws and regulations of the
countries and regions where we operate 1 female director
and respect local customs and traditions 1 female executive
Resource saving and utilization of
renewable energy Anti-corruption and integrity
Continuously enhance the diversity of the 96 periodic and interim reports
board of directors disclosed
Continuously enhance the independence RMB 222.324 billion of revenue
of the board of directors
Water resource saving Leading role of Party building Establish a sound ESG management
structure
Make continuous efforts on anti-
Green design Sustainability management corruption and anti-bribery
Conduct business with professionalism Participation in preparation of
honesty and integrity in all business 17 standards
Low-carbon operation relationships and promote free and fair 100% of collective contract
competition signing rate
Provide human material and financial 97.3% of comprehensive
resources to ensure the achievement of customer satisfaction rate
objectivesOverview
About Us11 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 12
CCoommppaannyy PPrroofifillee
Hengli Petrochemical Co. Ltd. was established in November chemical platform" and "expansion to new materials". With and technology accumulated and explored over a long period quality to continuously enhance the consumption market
2002. With the registered capital of RMB 7.04 billion the over 30000 employees and a "National Enterprise Technology of time and are leading in the capacity for technology R&D of conventional materials for civil use while continuously
Company engages in many fields to meet production and Center" we are at the forefront in the global industry in terms and innovation of new products. Four subsidiaries including expanding refining and improving the downstream business
consumption demands including petroleum refining of both our corporate competitiveness and brand value of Hengli Chemical Fiber Deli Chemical Fiber Hengke New of new chemical materials by taking the strategic growth
petrochemical aromatic hydrocarbon alkene PTA products. Material and Kanghui New Material have passed the certificate opportunity of combining "new consumption" and "hard
ethylene glycol textile yarn industrial yarn engineering of "National High-tech Enterprise". technology" in China.plastics polyester film degradable plastic and other high- Headquartered in Dalian China and with production bases
end chemical raw materials and a variety of new chemical constructed in Suzhou Dalian Changxing Island Nantong In the period of the "14th Five-year Plan" Hengli Petrochemical Being committed to "building a world-class enterprise
materials and applications. At present we have four major Suqian Yingkou Huizhou and Yangtze River Delta integration is making full use of the support platform of "major chemical" and creating an internationally well-known brand" Hengli
capacity clusters including a global benchmark refining and demonstration zone from the south to north of China integrating "oil coal and chemical" in the upstream and Petrochemical will move forward with the sentiment of
chemical integration project at a capacity of 20000 kta a we are dedicated to developing into a full-industry chain cumulated R&D achievements in "new materials" combining "building the country like a craftsman". With innovation
modern coal chemical plant at a capacity of 5000 kta the supplier of new chemical materials.With the high-quality and "yarn film and plastics" in the downstream to "improve the as the driving force focusing on the main business while
world 's largest single ethylene project at a capacity of 1500 efficient production capacity structure and utility facilities upstream and enhance the downstream" hence continuously addressing details Hengli Petrochemical will make full use
kta and 7 sets of largest single PTA plant in the industry at a featuring "equipment upsizing capacity scaling-up structural promoting the efforts for building a complete industry of the continuous empowerment from the upstream and
total capacity of 16600 kta. We have successfully shattered integration technology advancement green development chain based on new chemical materials and for improving the accumulation over the years in the downstream hence
the "bottleneck" in business links and raw material supply environment protection and complete support" in the whole scarce production capacities building the dynamic moat of creating a new full-industry chain market for developing
in the upstream and formed a strategic support platform industry chain of polyester and new chemical materials technology management cost efficiency and innovation downstream new chemical materials in a "top-down" manner
of "major chemical" with a combination of "world-class covering the upstream midstream and downstream and continuously expanding into the industry chain. As a in contribution for advanced manufacturing and consumption
chemical refineries + modern coal chemical plants" and the we are leading in the industry in terms of individual unit leading platform enterprise for the research development upgrade of the country achieving disruptive breakthrough
integration of "oil coal and chemical". Meanwhile we have installation total production capacity and production and manufacturing of new chemical materials in the industry in core technologies manufacturing processes and scale
a comprehensive capacity layout in the field of downstream processes. We follow the development path laying equal Hengli Petrochemical has the advantages of matching raw advantages and the "secondary growth curve" for long-
new chemical materials including differential fiber functional stress on market differentiation technology advancement material resources and systems from the upstream platform lasting development and realizing the "dream of Hengli" for
thin film engineering plastics and new degradable materials large-scale equipment and business integration uphold the makes use of its "innovative R&D gene" and insists on promoting the advancement of the country with industrial
hence creating a systematic industry pattern featuring a "major innovation mechanism based on integration of the market the development advantages of Hengli speed and Hengli development.13 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 14
BBuussiinneessss LLaayyoouutt
Bases Layout
Headquartered in Dalian China we have a refining
project at a capacity of 20000 kta an ethylene project
at a capacity of 1500 kta and a coal chemical project
Dalian Changxing Island Base at a capacity of 5000 kta in the upstream. As the
largest PTA plant in the world we make every effort
to achieve the world 's largest capacity of functional
fibers films and new plastic materials and has
established seven production bases in China.Suqian Base
Yingkou Base
Yangtze River Base
Nantong Base
Huizhou Base
Suzhou Base
Note: This map is for reference only and does not represent a real map.15 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 16
Industrial Layout
We are dedicated to achieving the whole industrial chain development featuring "platform + new materials" from "a drop of oil" to "a piece
of yarn" and from "a drop of oil" to "a roll of film". We have always focused on main business and started from the polyester fiber industry.In the process of growth we successfully shattered the "bottlenecks" one by one and make continuous efforts to develop new material
industries such as fiber film and plastic while moving towards the integrated platform of upstream petrochemical refining and coal-
chemical hence creating an industrial system featuring a "major chemical platform" and "expansion to new materials".Ultra-high
molecular weight Lithium battery separator
Polyethylene/ 2 Lithium battery0+3.44 billion m
propylene
Petroleum products
Butadiene
PP 13.3 (10 kta/year) Polyester filament yarn Weaving mill
43 (10 kta/year) 300 (10 kta/year)
PP
42 (10 kta/year)
Liquefied gas PET chip
64 (10 kta/year) 7 (10 kta/year)
Spinning mill
SM
72 (10 kta/year)
Refinery dry gas Ethylene PET industrial yarn
Auto parts manufacturer
150 and building material
108 (10 kta/year) 60+20 (10 kta/year)(10 kta/year) factory
HDPE
40 (10 kta/year)
Crude oil Naphtha for ethylene PET Polyester film
Printing packaging
2000 170 (10 kta/year) 432.8+117 (10 kta/year) 38.6+97 (10 kta/year)
electronics and
MEG other enterprises(10 kta/year) 167 (10 kta/year)
PBT Automobile PX PTA
520 (10 kta/year) 1660 (10 kta/year) 24 (10 kta/year)
electronic machinery
and other enterprises
Other chemicals
PBAT Packaging electronics
3.3+45 (10 kta/year) and other enterprises
Hydrogen from coal and
acetic acid from coal
40 (10 kta/year)
Hengli Petrochemical Hengli Petrochemical Hengli Petrochemical Hengli Chemical Fiber and
Refining Chemical (Dalian) Kanghui New Material Note: the data behind "+" is the planned new
production capacity of the product (10 kta/year).17 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 18
Miilleessttoonneess iinn 22002222
No. 64
Actively "Fortune China 500"
performed social
responsibilities Fortune China released the
Hengli Petrochemical 2022 Fortune China 500. Hengli
r e l e a s e d i t s 2 0 2 1 Petrochemical has been listed
Ranked 1st among Social Responsibility for six consecutive years and The ultrafine fiber filled
private chemical listed R e p o r t w h i c h i s ranked 64th up 12 places China's technological gaps
companies in the A-share t h e f i r s t s o c i a l from the previous year. again
Cash Dividend List r e s p o n s i b i l i t y In the industry sub-list
report since it's it ranked 1st in private U p o n p r o v i n c i a l n e w p r o d u c t C h i n a A s s o c i a t i o n f o r P u b l i c
listing. chemical industry in appraisal the committee was of the Companies released the A-share term of revenue. opinion that Hengli Petrochemical 's
Cash Dividend List and Hengli overall technology of ultrafine fiber
Petrochemical was at the 37th takes the lead in the industry filling
place in "Generous Return China 's technological gaps.Being transferred into SSE 50 L i s t o f A - s h a r e L i s t e d Being granted over
Index Companies" ranking 1st 1000 patents
among private chemical
The Shanghai Stock Exchange and China listed companies. Hengli Petrochemical triumphed over its
Securities Index Co. Ltd. announced that they core technology shortcomings in the whole
will adjust samples of indexes such as SSE industry chain and was granted over 1000
50 Index SSE 180 Index SSE 380 Index 2022 July 20 patents in total embarking on a new journey
and Kechuang 50 Index. Upon review
June 22
Sep to pursue the IP construction.by the index expert committee Hengli
22
te
Petrochemical was transferred to the mb
e 20 eSSE 50 Index. un
r 2
J 0 22
D e ve l o p e d t h e d i st r i b u te d
O
photovoltaic power generation cto
project of the largest enterprise 2 2 be Application for independently establishing a
in Jiangsu 0 post-doctoral station was approved
The 4th Phase of 29.2 MW distributed photovoltaic power This station became a national independent work station
general project of Hengke New Material was officially out and also another national scientific research carrier.into operation.Entered
the list of "Top 10
Typical Cases on Capital Market
M&As and Restructuring in the Past Ten Years"
of China Association for Public Companies
The project "Delisting Risk of Dalian Rubber Plastic Being
Defused by Restructuring and Listing of Hengli" entered the
list of "Top 10 Typical Cases on Capital Market M&As and
Restructuring in the Past Ten Years" of China Association
for Public Companies and was granted the "Top 10 Typical
Cases on Capital Market M&As and Restructuring" and
"Typical Case on Capital Market Risk Defusing".March 2022 May 2
er 2022
D
ecemb
22
ber
20
to
Oc
2
20
2
r19 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 20
AAcchhiieevveemeennttss aanndd RReewaarrddss
Award Awarded by Award Awarded by
No. 14 "Top 25 World 's Most Valuable Brand Finance a famous brand appraisal institution in Jiangsu Intelligent Manufacturing Jiangsu Department of Industry and Information
Chemical Brands" UK Demonstration Plant Technology
No. 12 "Top 50 Global Chemical Chemical & Engineering News (C&EN) Governor's Quality Award Liaoning Provincial GovernmentEnterprises"
Grade AAA Model and Harmonious Liaoning Department of Human Resources and Social No. 10 "Billion Dollar Club" Chemical Week
Labor Relations Enterprise Security and Liaoning Federation of Industry and Commerce
No. 64 "Fortune China 500" Fortune
Jiangsu Private Technology Enterprise Jiangsu Association of Private Technology Enterprise
Excellent ESG Practice Company in
2022 Thinking Finance and Investor China
Grade AA Industrial Enterprise in Jiangsu Administration for Market Regulation and
General Office of the Ministry of Industry and Jiangsu Jiangsu Development and Reform CommissionNational "Green Factory" Information Technology of China
Jiangsu Green Factory Jiangsu Department of Industry and Information
Entered the list of national-level Technology
enterprise standard "leader" China National Institute of Standardization
Excellent ESG Practice Case for Listed
Companies China Association for Public CompaniesSelected as a benchmark enterprise
for energy and water efficiency in the China Petroleum and Chemical Industry Federation
petroleum and chemical industry Entered the "List of Listed Companies
with Generous Returns" included in
Low-carbon enterprise in national China National Textile and Apparel Council "Cash Dividends List of A-share Listed
China Association for Public Companies
textile industry Companies"Governance
Consolidating Foundation
of Development
We continuously improve our corporate governance level
strictly comply with laws regulations and industry norms work
out strict and complaint internal control policies and carry out
investor exchange activities to disclose important information
to stakeholders in a timely and effective manner. We attach
great importance to integrity anti-corruption and Party building
continue to advance the internal control management reporting
management anti-corruption Party building to promote our long-
term development with practical actions.23 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 24
CCoompplliiaanntt Oppeerraattiioonn
We have set up organizational structure suitable for our production and operation and worked out sound management rules for the general General Meeting of
meeting of shareholders the board of directors and the board of supervisors to regulate corporate operation in strict accordance with the Shareholders Board of Directors Board of Supervisors
Companies Law the Securities Law the Code of Corporate Governance of Listed Companies the Rules Governing the Listing of Stocks
on Shanghai Stock Exchange and other laws regulations and normative documents. With these efforts we have established a corporate In accordance with the requirements We set up the Strategy and Investment Our supervisors diligently fulfill their
governance structure featuring specific allocation of duties and obligations effective check scientific decision making and coordinated of the Companies Law the Rules of Committee the Audit Committee duties in strict accordance with
implementation among the authority body the decision-making body the supervision body and operation and management staff. the General Meeting of Shareholders the Nomination Committee and the the Companies Law the Articles of
of Listed Companies the Articles of Compensation and Performance Association the Rules of Procedure
To follow the philosophy of the ESG development respond to stakeholders and promote corporate diversity we promise to actively advance the Association the Rules of Procedure Assessment Committee under the for the Board of Supervisors and
gender diversity in the board of directors and raise the proportion of women in the board of directors. In addition we also actively promote the fo r t h e G e n e ra l M e et i n g o f Board of Directors. We convene and other regulations monitor the
independence and professionalism of the board of directors. Shareholders and other documents hold the meetings of the board of legality and compliance of our
General Meeting of Shareholders we regulate the convening holding directors in accordance with the operation and development and voting procedures of the Rules of Procedure for the Board of financial position related party
general meeting of shareholders Directors. The independent directors transactions and material matters as
Strategy and Investment Committee in accordance with law protect performed their duties independently well as performance of duties by our
Board of Supervisors the shareholders' information safeguarded our overall interests directors and Executives actively
Internal Control and participation inquiry and voting focused on protecting the legitimate safeguard the legitimate rights and
Office of the Board Secretary of the Board of Audit Committee Audit Department rights and facilitate the participation rights and interests of minority interests of us and our shareholders
of Directors Board of Directors Directors of minority shareholders in the shareholders from being damaged and promote our healthy steady
Nomination Committee general meeting of shareholders and expressed their independent and sustainable development.Management with a view to safeguarding the opinions on our important and
Compensation and Performance interests of all shareholders material matters.Assessment Committee particularly minority shareholders.Duties of the General Meeting of Shareholders the Board of Directors and the Board of Supervisors
Based on our actual situation and future development needs we have revised and improved our existing 19 governance rules
correspondingly so as to fully implement the latest regulatory requirements further enhance our development quality regulate
our operation raise scientific governance level and protect the rights and interests of investors.Organizational chart
In 2022
our board of directors Our board of supervisors Our senior We held
management
consisted of7members consisted of 3 consisted of 4 general meetings of
3 members includingincluding independent 1 5members shareholders 10meetings employee supervisor including of the board of directors and
directors and4 non-
female Executive and
independent directors 1 7 meetings of the board of
among which there was 4 supervisors1 male Executivesfemale director
Note: Please see the Annual Report 2022 for information on the board members L e g a l A f f a i r s
Department
Administration and
HR Department
Strategic Investment
Department
Finance Department
Assets Management
Department
Capital Management
Department
Finance
Management Center25 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 26
IInnvveessttoorr RReellaattiioonnss Maannaaggeemeenntt Case We participated in the 2022 Annual Investor Party of Thinking Finance Investors and were awarded "Golden Bridge Award - Outstanding ESG Practice Enterprise"
In November 2022 we participated in the 2022 Annual Meeting
of Thinking Finance Investors and "Golden Bridge Award"
Information Disclosure Ceremony and was awarded "2022 Outstanding ESG Practice
In 2022 Enterprise". This award is a high praise from society in respect
We worked out Information Disclosure Management Rules Accountability System for of our adherence to the idea of green and environment
Major Errors in Annual Report Disclosure and other documents. In accordance with these the Company disclosed protection and active performance of social responsibilities.documents we will conduct information disclosure with high quality follow principles We hereby certify to investors that: we will implement the ESG
of truthfulness accuracy completeness timeliness and fairness to ensure the timeliness 4 periodic reports philosophy and further promote our long-term stable and
and effectiveness of disclosure by announcement narrow the scope of insiders make high-quality development.all shareholders investors and stakeholders have fair access to information and timely and We were awarded the "Golden Bridge Award - 2022 Outstanding
understand our operation and progress of material matters. All of our information to ESG Practice Enterprise"
be disclosed are disclosed by making announcements at the designated information 92 interim reports
disclosure media including China Securities Journal Shanghai Securities News
Securities Times Securities Daily and the website of the Stock Exchange. our information disclosure was IInntteerrnnaall CCoonnttrrooll
granted Grade
We worked out the Internal Audit Rules of Hengli Petrochemical Co. Ltd. and the Internal Control Rules of Hengli Petrochemical
rating in the fourth consecutive year Co. Ltd. in accordance with the Audit Law of the People 's Republic of China the Basic Internal Control Norms for Enterprises
Investor Relations A the Rules Governing the Listing of Stocks on Shanghai Stock Exchange and other relevant laws and regulations. Our board of
directors and management are responsible for supervising the establishment and implementation of internal control and ensuring
We revised the Investor Relations Management Rules which requires treating all the effective implementation of relevant control rules. Our Internal Control Department and Audit Department are responsible
investors honestly fairly and impartially. We continuously conducted daily investment for supervising and inspecting the establishment and implementation of our internal control rules as well as truthfulness and
relations management and maintenance and improved the handling of investor completeness of our financial information.complaints in strict accordance with the requirements of regulatory authorities.Our internal control audit personnel have necessary professional knowledge on related policies are capable of acting impartially
and sticking to principles are familiar with business management financial and accounting practices and regulations and rules
Case 2021 online performance briefing on finance are proficient in audit and maintain due professional caution.In May 2022 we held 2021 online performance briefing by a
combination of video recording and online text interaction.At this briefing we fully exchanged and communicated with
investors about our operating results financial position and
other related information in 2021 and replied to the common
concerns to investors within the scope of permitted disclosure.
2021 performance briefing
Case 2022 semi-annual and 3rd quarter performance briefings
We held 2022 semi-annual and 3rd quarter performance briefings respectively in August and December 2022. At these briefings we
communicated with investors and stakeholders about the operating results and financial indicators during the reporting period by
online text interaction.27 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 28
AAnnttii--ccoorrrruuppttiioonn aanndd IInntteeggrriittyy Upphhoollddiinngg PPaarrttyy BBuuiillddiinngg
We have always attached great importance to the Party building and our Party building and our production and operation are
Anti-corruption and Anti-money Laundering mutually reinforcing. We took the lead in establishing the Party branch in 1997 and the Party Committee in 2004 among Jiangsu private enterprises and the Disciplinary Supervision Committee of the Private Enterprise in Wujiang in 2010 and set up the goal of
We believe that anti-corruption and anti-bribery are the basic guarantee of the legal operation and health development for an "taking the lead in becoming the most honest and clean non-public enterprise in China".enterprise. To establish a clean and honest corporate environment and to better perform risk prevention and internal control
we have worked out Code of Integrity and made the Statement of Business Ethics and Anti-Corruption Rules. We undertake
to comply with the laws and regulations of the countries and regions where we operate avoid insider trading corruption and Party Building Brand
money laundering and other misconduct and the Legal Affair Department is responsible for supervising such misconduct. We Hengli Group has over 5600 Party members. The Party organization of Hengli Petrochemical has achieved full coverage in all
prohibit all forms of bribery and corruption actively request and advocate contractors suppliers intermediaries agents and other industrial bases. We made high-level summarization and extracted the brand for Party building at Hengli - "Yarn Pioneer" providing
stakeholders to jointly comply with the documents and rules related to anti-corruption and integrity upholding. strong support for the innovative development of the Party building and our steady growth.We have established internal procedures for reporting unethical acts and corruption. If any person discovers the issues or acts that
involve the breach potential or actual breach of the Statement on Business Ethics and Anti-corruption Rules and other related Fostering the Fort Red Cell
Presence of Strict
Party Identity Supervision
documents we encourage that person to immediately report such issues or acts to his/her immediate manager trade union or any
personnel having supervision authorization. Meanwhile we have set up an anonymous whistleblowing box and the Legal Affairs Enhance hardware and software Intensify efforts for slogans and Promote regular election Give full play to the functions
Department will check it periodically. Employees can expose and report the aforementioned acts anonymously. facilities for Party building signs both in and outside of the of "Model (Pioneer) Party and roles of the Disciplinary
Company. Member Posts" "Outstanding Supervision Committee
Improve regulations on Party Members" etc. and promote the organic
Whistleblowing address: 31/F Building B Victoria Plaza No. 52 Gangxing Road Renmin administration safety in Create the "Hengli New Era" integration of the disciplinary
Road Gangxing Community Zhongshan District Dalian City Liaoning production green development WeChat official account for Post the commitments of supervision and the
integrity upholding etc. Party-mass efforts and WeChat Party members on bulletins production and management.groups for Party organizations in a timely manner and
Promote development of our and members at various levels request Party members to Integrate disciplinary
regulated and regular Party
Whistleblowing hotline: 0512-63838399 and vigorously promote and wear Party emblems shoulder supervision into our building system and activities publicize the latest regulations responsibility and consciously management culture and
Guide and lead Party members and knowledge of socialist accept supervision and organizational coordination
and staff to strengthen core values and Party building encourage Party members and and strive to build "trusted
learning and further improve management. staff for further exploration posts" of backbone staff
Whistleblowing email: jubao@hengli.com the professional ability and and innovation to become the who are Party members for Establish and improve information
competence of Party members backbone for leading workers integrity in operation and platforms and improve
Complaint and whistleblowing channels by external training and inviting and the leader for promoting build disciplinary inspection management service level
experts to give lectures etc. our development. into a "firewall" against risks.Building of Integrity Culture
We offer integrity culture training and publicity to all employees on a periodic basis to ensure that they understand the types of Four major projects for implementing the brand of Party building
corruption local laws on corruption our anti-corruption regulations and policies and how to report corruption thereby creating
an atmosphere of integrity within the Company. Established effective regulations Carry out meaningful activities
Each Party branch establishes a f ixed Carry out "Red Hengli" Party building series
Case Offer integrity training to sales staff site for Party member activit ies post activities on July 1st every year and further
the commitments of Party members on promote establishing the system for "Two
bulletins request Party members to fulfill Studies One Action" through continuous
To regulate the daily behaviour of sales staff and establish a clean and pragmatic work environment we organized all sales staff their commitments intensify efforts for education on the glorious tradition and fine
to participate in the integrity training. Through this training the employees are required to do the following: work honestly do not Party building slogans and signs both inside and outside conduct of the Party.go along with others in evil deeds stay away from vulgar hobbies not to be greedy always examine themselves avoid practicing around of the plant promote red propaganda and
fraud establish good images as an employee and consciously resist bad practice in their work. four major create an atmosphere for Party building. projects
Foster high-quality talents
Conduct annual selection of excellent
Party members and model posts of Party
members consolidate and deepen the
achievements of non-public Party building
and create a learning atmosphere for "Two
Our sales staff participate in the integrity training Visit Warning and Education Base for Party Building and Integrity Upholding Studies One Action". Party building29 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 30
Grassroots Party Building Case A series of activities for welcoming the 20th National Congress
The grassroots Party organization is the bridge and link between the Party and the masses and assumes the sacred mission of
communication organization and implementation image building and union. We stick to the principle of "from the people to the Scenario-based Party lecture in the form of micro video: In Jigsaw activity: In October 2022 Hengli Chemical Fiber
people" and effectively play the role of grassroots Party organization. June 2022 the competition of scenarios-based Party lectures in the held a jigsaw activity on the great history of the CPC entitled
form of micro vide was grandly held in Hengli Chemical Fiber for "Welcoming the 20th National Congress and Sailing into
The Party Committee of Hengli (Nantong) Industrial Zone was granted the title of "Demonstration Site celebrating the 101st anniversary of the founding of the Party with the Future". It aimed to promote the spirit of patriotism and Case for Grassroots Party Building" the theme as "Welcoming the 20th National Congress and Forging nationalism study the glorious history of the Party deeply
Ahead in the New Era". Around the key words of "happiness hard understand the original intention and mission of the Party
In June 2022 the Party Committee of Hengli (Nantong) Industrial Zone was granted the title of "Nantong Demonstration Site work innovation and progress" the competition used novel further cultivate employees ' Party spirit and raise the Party
for Grassroots Party Building". Since its establishment the Party organization of Hengli (Nantong) Industrial Park has always scenarios to vividly show the glorious struggle of the Party the members ' awareness of loving respecting and maintaining
adhered to the leading role of Party building and explored development of the Company personal growth experience of our the Party and celebrating the successful holding of the 20th
and promoted the idea of "Three Integrations Three Services employees good life and other stories of ceaseless efforts to make National Congress.and Promotion of Win-win Development" around the Party progress in the new journey for a new era.building brand - "Yarn Pioneer" and devoted great energy to
conducting four major projects such as "Fostering the Fort
Red Cell Presence of Party Identity and Strict Supervision".With these efforts it effectively promoted the win-win situation
of the Party building and the development of the company
further transformed the theoretical and organizational
advantages of the Party into development advantages of the
company and enable the Party building to progress together
with the development of the company. Demonstration Site for Grassroots Party Building
Party Building Activities
Party member activities we conducted are conducive to raising the Party members ' sense of social responsibility and mission. By
participating in relevant services and knowledge training the Party members can raise their awareness of serving the people. Party Opening ceremony of the scene-based micro Party lecture Jigsaw activity
building activities are open in which the Party members can access and learn the latest policies and theories science and culture
among others to promote the interaction and build a harmonious relationship between the masses and the Party members.Case Visit the Party building exhibition hall Case Participate in Party school training Case Watch the opening ceremony of the 20th CPC National Congress
We organized all members to visit the Party building exhibition To strengthen Party building and consolidate our "Party Root" On October 16 2022 we organized all employees to watch the opening ceremony of the 20th CPC National Congress carefully
hall to enable them to know the Party culture and the heroic and "Party Soul" we have established the Party school as the listen to the work report delivered by the General Secretary XI Jinping and celebrate the successful holding of this grand meeting.deeds of the Party leaders more intuitively. Meanwhile we aimed main channel of Party building education and training for all All of our employees studied the spirit of the 20th Party Congress. This helps us building a harmonious relationship between the
to use the Party building culture as a guide for corporate culture employees. The establishment of the Party school is important Company and our employee enhance cohesion to embark on a new journey and provide guarantee for our steady development.help employees form the Party values and behavioral norms. for the employees to cultivate their Party spirit adhere to the
philosophy of upholding the authority of the Central Committee
and and implementing the spirit of the Party.Hengke New Material watched the opening ceremony of the 20th Hengli Petrochemical (Dalian) watched the opening ceremony of
Visit the Party building exhibition hall Participate in Party school training National Congress the 20th National CongressIn-depth Efforts
Lead the Brand in Achieving
Leap-forward Development
We are dedicated to advancing scientific and technological
innovation attach great importance to IP protection and build
the integration of digital industrial economy. In addition we pool
resources to guarantee our product quality and information safety
enhance investor confidence improve consumer satisfaction and
wholeheartedly devote ourselves to high-quality brand building and
development.33 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 34
SScciieennttiifificc aanndd TTeecchhnnoollooggiiccaall IInnnnoovvaattiioonn Achievements of Science and Technology R&D
We actively introduced advanced technology and insisted on optimizing scientific
research conditions. With these efforts we achieved a series of technical certificates
R&D Team Building and excellent scientific research results during the reporting period.We attach great importance to scientific Reward for new product (technology)
and technological innovation continuously development projects
replenish R&D team and build a high-level
scientific and technological R&D platform. To Reward for the new technology and new
continuously launch high-quality products product at the provincial level or above
that satisfy customers we have worked out fund project
the Administrative Measures for Training and
Advanced Studies of Scientific and Technical
Staff in the Technology Center to build a Patent/software copyright reward Kanghui New Material was recognized as a
scientific research team with good ideological Category of High and New Technology Enterprise
moral and business qualities; worked out rewards Reward for participation in revision of standards
the Administrative Measures of R&D Staff
Performance Appraisal to comprehensively
Reward for middle and senior professional titles
check and evaluate the achievements of our
R&D staff; and worked out the Administrative
Measures for Rewards for Independent Reward for system building
Innovation to effectively improve the innovation
enthusiasm of the scientific and technical staff Other rewards for innovation
and accelerate the building of our independent
innovation capability. Incentive mechanism for technology innovation Deli Chemical Fiber enters Suqian City 's top Kanghui New Material entered China 's top
20 high-tech enterprises in 2022 100 science and technology enterprises in
the light industry
The scientific researchers need to master many kinds of knowledge so we adopt the open learning mechanism for multiple
posts and departments. The knowledge involves the work contents of production quality control quality inspection equipment
Case Hengke New Material - realize the building of the whole-process instrument and after-sale services departments covering the whole-chain training from upstream polyester of fiber to downstream R&D system from chemical fiber to polyester
weaving dyeing and finishing. This lays a solid foundation for the Company to establish a strong R&D team.Polyester is the raw material of chemical fiber and its preparation belongs to In 2022
upstream process of chemical fiber. R&D experiment on the existing polyester
Academic structure Age structure of the production equipment cannot be conducted because of the large size of reaction the investment in science and
of the R&D staff R&D staff equipment complicated process and huge experimental cost. The polyester pilot technology R&D amounted to RMB
Number of R&D staff line was put into production in 2022 and Hengke New Material realized the R&D
3128 12 person 93 person 28 person mass production of disperse dye atmospheric pressure dyeable polyester and high person 133 person 1.185 billion shrinkage polyester. In reliance on chip spinning equipment it realized the spinning
410 person 1035 person production of differentiated polyester chips. What 's more it realized the whole R&D an increase of
Proportion of R&D staff process of from polyester to spinning based on the previous R&D of the spinneret
8.1 cross-section and spinning process conditions at the pure chemical fiber end. % 3023 person 16.21% compared with RMB
Deli Chemical Fiber - The ultrafine fiber filled China 's 1.019 billion last year. Case technological gaps again
1522 person Hengke New Material researched
In September 2022 five new products of Deli Chemical Fiber passed the provincial and developed the products around
Doctor Below 30 (excluding 30) new product identification including "high-uniformity and super-soft polyester fiber" differentiated and functional fibers and
Master 30-40 (including 30 excluding 40) "micropolyester fiber" "hydrophilic and quick-drying polyester fiber" "hydrophilic
Bachelor and below 40-50 (including 40 excluding 50) flame retardant functional polyester fiber" and "hydrophilic antibacterial functional 8 new provincial products
polyester fiber". Among them "high-uniformity and ultra-soft polyester fiber" was were identified in 2022.
50-60 (including 50 excluding 60) unanimously recognized by the appraisal committee and the appraisal committee
60 and above was of the opinion that the overall technology of such product took the lead in the
industry in China filling domestic technological gaps.35 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 36
IIPP PPrrootteeccttiioonn Case Kanghui New Material - new production system went online
We have worked out Administrative Measures for IP Protection and strictly implemented In 2022 In January 2022 the new production system of thin film was
it to strengthen the management of our IP rights promote our patent proprietary officially launched in Kanghui New Material the first whole-
technology and trademark work enhance the protection of IP protection of the we were granted process data system covering the sales order to product
Company and related parties and encourage inventions and other intellectual creative new patents deliveries. All modules in the process were developed
activities thereby improving the enthusiasm of employees ' inventions and creations 261 independently by Hengli Smart Technologies based on the
creating a better innovation environment and promoting our technological innovation. research of its use department and integrated on HENGLINK.Meanwhile to guarantee the stable operation and data
In 2022 Deli Chemical Fiber won the First Prize of Suqian City Patent Award security of the system Kanghui New Material deployed the
At the end of 2022
obtained 5 provincial new product identification certificates and was granted the HENGLINK service locally in the Yingkou server room realizing
title of "National Intellectual Property Advantage Enterprise" becoming our second we have a total of the double backup of the system in the local and Suzhou data
nationally recognized subsidiary after Hengli Chemical Fiber was recognized as a 1116 centers. In 2022 Kanghui New Material achieved significant "National Intellectual Property Demonstration Enterprise". patents progress in both industrial data collection and production
system data application which are the foundation of the New production system
Digital Intelligence Development digital factory and demonstrate Kanghui New Material 's Digital Intelligence Develop ent determination to develop into a digital factory.We unswervingly advanced the in-depth integration of industrialization and informatization made full use of digitalization
networking and intelligent technology and incorporated the intelligent manufacturing and digital management into all aspects of Case Kanghui New Material - help customers improve product quality
daily production and operation achieving remarkable results in the construction of intelligent projects.Honors The chemical fiber MES management system independently developed by Hengke
New Material can complete the establishment of data control model and conduct
continuous dynamic monitoring of each process parameter and automatic alarm
response for over-control through a comprehensive analysis of data at each joint
point of the process production flow; establish process parameters and physical
properties dyeing performance control standards and use automatic terminal
data collection system; finally use the engineering management MES system of
production data and inspection report data enable the data collection uploading
analysis feedback to achieve a low latency closed loop maximum analysis of
problems in production and quality control and improve product quality and
production efficiency. Digital management using the MES system
Hengke New Material was recognized as the Advanced Enterprise of Hengke New Material was recognized as Jiangsu
Intelligent Transformation and Digital Transformation in the City Intelligent Manufacturing Demonstration Plant in 2022
新生产系统37 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 38
Case Hengke New Material - a variety of intelligent equipment was introduced Quuaalliittyy AAssssuurraannccee
To maintain the intelligent production Hengke Advanced Materials continues to introduce intelligent manufacturing equipment We have always adhered to our own quality strategy started from our vision and insisted on the key philosophy of "quality cost and rapid
such as automatic plate clearing system automatic doffing system automatic inspection system automatic packaging system response" through market insights and took into account the internal and external environment as well as competitiveness. Also we have
automatic transfer system and intelligent stereoscopic warehouse system to realize the automation and intelligence of the whole determined the focuses in enterprise innovation and developed the quality strategy of "being dedicated to building a world-class plant with
production process. "internal excellent and external beauty" and providing first-class products and services". In addition we have formulated the Equipment
Monitoring and Measurement Control Procedures the Unqualified Product Control Procedures and other documents to control product
1 Automatic plate clearing system quality and improve qualification rate of products. During the reporting period we obtained a series of quality management system certificates.
Mobile robots instead of manual labor regularly clean and spray silicone oil on spinning spinnerets which not only saves
labor and improves production efficiency but also standardizes shovel plates and improves product quality;
2 Automatic doffing system
AGVs and robots replace human workers to achieve
automatic doffing system. Meanwhile multiple
dof f ing vehic les for product ion l ines can be
dispatched freely. After doffing completes the system
automatically generates barcode information bearing
the corresponding yarn cake category number and
winding machine number and then includes such Quality Management System Certificates obtained by some of our subsidiaries
information into the database which improves the
efficiency of comprehensive product control;
Automatic doffing system
To guarantee the reliable product quality we have not only
controlled production process but also actively cooperated
with product sampling activities and assisted customers in
3 improving product quality so as to create an all-round and Automatic packaging system multi-angle product quality protection network.
The yarn cakes are transported according to different
batches and grades through automatic packaging
conveying control system (BAPS) and conveying
control is exercised for automatic boxing packaging IATF16949 Automotive Industry Quality Management System Certificate
and stacking in the order set in the packaging plan
realizing the automation of packaging production; Case Kanghui New Material - help customers improve product quality
In September 2022 the after-sale and sale personnel of Kanghui New Material went to the customer 's production line and
Automatic packaging system discovered that the injection temperature of the customer was more than 280 degrees exceeding the melting point of PBT by
about 60 degrees close to the thermal degradation temperature and resulting in the precipitation of small molecules such as
color powder. After that we helped the customer analyze the reasons and then lowered the temperature of injection screw and
runner solving the precipitation of color power and then from there no similar circumstance occurred.
4 Automatic storage system
Products are stored automatically through AGVs
instead of human workers which meets our
production demand. Meanwhile the purposes of
labor and energy saving and labor cost reduction are
achieved.There is color power on the mold The finished product has color difference
Stereoscopic warehouse39 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 40
IInnffoorrmaattiioonn SSeeccuurriittyy
We attached great importance to internal information security
management. We conducted penetration tests on the whole
platform of HENGLINK on a periodic basis. Meanwhile as new
systems and new modules are continuously launched the
operation and maintenance work of the system is increasing.To raise the employees ' awareness of network security we
conducted a series of information security training activities
to enhance employees ' ability to prevent and respond to
information security incidents.During the reporting period we successfully handled many
system problems and achieved the normal system operation
and network security equipment operation. Throughout
the year the company had no data security accidents or
abnormal network attacks.Information security education and training
Conduct remote backup in strict accordance with the data backup security requirements;
Data backup is to back up the database of our business
system and MES system is critical for the normal operation
of the Company and our regular working order. We hereby
formulate the Server Date Remote Backup System to raise Enable binlog the database. When any abnormality occurs binglog can be used to restore the data;
the relevant management 's awareness of dedication sense 2022 年
of responsibility and enable them foster a meticulous and
rigorous work attitude so as to regulate data backup and Our safety construction We dealt with system Monitor the server and mysql. If any indicator is abnormal the system will push the abnormal
management. rate hardware and problems for information through henglink;
software maintenance rate
and hardware security rate 25689 times
were all Strictly comply with the confidential system and network management norms and keep
100 and completed confidential the data administrator password; and % in 2022 45 information
security education and
training sessions Carefully make the login statistics whenever the server is operated.Data Backup Management MeasuresSynergy
Empower Our Partners
We attach importance to our high-quality development and also
expect to grow together with our partners. We are committed to
achieving efficient and sustainable production and operation
through the optimization and synergy of the supply chain and
actively promote the development of the industry to provide
better products and services to customers. What's more we value
the cultivation and development of employees help employees
continuously grow to inject more vitality into the Company and the
industry and create greater value and contribution to the society.43 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 44
SSuuppppllyy CChhaaiinn Maannaaggeemeenntt Digital Supply Chain
HENGLINK a comprehensive digital management system
We have formulated and implemented the internal control documents on procurement and suppliers including the Procurement independently researched and developed by us can realize
Management Procedures the Supplier Management Rules the Supplier Selection and Evaluation Process and the supporting such functions as online examination and approval of sales
management documents including the Supplier Recommendation Form the Supplier Survey Form the Supplier Inspection Report procurement contracts and funds and real-time review of
the Qualified Supplier Access Audit Form the Supplier Performance Assessment Form and gradually established a perfect supply warehouse inventories. By using the application for procurement
chain management system to conduct strict management of all aspects from upstream suppliers to downstream customers. purchase management inquiry management supplier
management contract management and other functions in
Risk Identification Risk Response the procurement system we have realized the two-way control
and tracking of the whole procurement process and the
Stock up on routine parts and communicate with suppliers in informationization management of material supply chain.Suppliers fail to deliver the goods in time affecting the overall advance for the brand temporarily designated by customers AWMS intelligent storage system module
production progress to ensure that a certain time will be left; develop and establish
standby suppliers. Responsible Procurement Process
Establish a qualified supplier tool and select qualified We and our suppliers signed the Anti-bribery Agreement to control integrity risks from the source of business. Also we optimized
Procurement materials fail to meet quality requirements
suppliers; and conduct regular reviews on suppliers. contract performance terms. We offered training for key employees and guaranteed that the dealings between procurement
personnel and suppliers would be honest and that our procurement personnel would fully perform all duties.Given the impact of national policies on the prices of raw
Compare the prices in the same industry; understand national
materials we fail to control such impact timely thereby
policies timely through various channels.resulting in an increase in procurement costs In all aspects of bidding and procurement All participants in the procurement A l l te c h n o l o g i e s pate n ts a n d
all judges shall be independent of each must adhere to professional ethics business quotations of the bidding
Supply chain risk identification and response other and technical and commercial integrity and self-discipline. and procurement assessment shall
judges shall make phased assessment. be kept confidential.What 's more when the supplier delivers products we will require the supplier to provide related supporting materials such as the test report
of products issued by a third party and product certificate and then submit them to the Procurement Department for review; conduct arrival
inspection to ensure that the quality and environmental features of products meet national standards and our relevant requirements and issue
the test report and records. Only after the products are qualified upon test the raw materials may be put into production. Principle of Principle power check Principle of of business
and balance integrity confidentiality
We evaluate suppliers on a periodic basis and remove the unqualified suppliers from the supplier list so as to effectively ensure that the various
aspects of the products provided by suppliers meet our requirements and thus the qualification of our products can be fully guaranteed.Principle of Principle of Principle of
fairness and reputation retroactive
transparency maintenance procedures
Sustainable Supply Case Kanghui New Material - assist suppliers in improving product quality
Chain
A customer of Kanghui New Material The bidding and procurement standards The relevant participants in all aspects Each step in the bidding and procurement
We include the indicators related to ESG found foreign matters in some barrels must be fair and the conclusion must of bidding and procurement shall be process shall have standardized records of
performance such as environmental of THF (tetrahydrofuran) provided be objective and just. diligent professional and honest and results and documents of achievements
protection health and safety labor rights and by Hengli Kanghui when using THF. maintain the reputation of the Company. for review.interests of suppliers into the assessment The pharmaceutical factory has high
scope of supplier access contract signing requirements on THF foreign matters Biding and procurement principles
and relationship management. Meanwhile so we sent the customer 's feedback
we promise to continuously devote great on foreign matters to the relevant Case Hengli Chemical Fiber - the procurement personnel receive the training
energy to the environmental and social supplier without delay and went to the
aspects of suppliers promote resource customer 's site with the supplier for Hengli Chemical Fiber invited Wujiangn District People 's Court to
sharing strengthen the building of further discussing the reasons of such carry out education on the risk of job-related crimes and corporate
communication mechanisms discuss and problem. Finally the supplier added a criminal offenses and prevention and leaded the procurement
work out emission reduction targets and high-powered industrial vacuum cleaner personnel to visit Wujiang detention house so as to enable every
strategies with our suppliers and improve to clean the impurities and improve employees in key posts to understand the harms of corruption.scientific and technological innovation the cleanliness inside the barrel before Meanwhile Hengli Chemical Fiber also reminded each and every
capacity and raise the quality guarantee each shipment. We also upgraded the employee at the monthly department meetings that they shall be
level so as to achieve long-term sustainable acceptance standards for packaging strict with themselves and honest in performing their official duties.development goals. barrels and worked with suppliers to
control the quality of products. Foreign matters inside the barrels Risk and prevention education conducted by Wujiang People 's Court45 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 46
Case Processes for product return and replacement
With respect to the handling processes and administrative measures for product return and replacement by customers Kanghui New Material
have formulated the Management Rules for Return and Replacement by Customers of Products to classify and manage customers and have
worked out improvement methods for problems in process and management so as to improve customer services and raise customer satisfaction.The Customer Opinion Handling Table is submitted to the corresponding
CCuussttoomeerr SSeerrvviice
The salesman fills out the Customer Opinion Handling Table sales manager and deputy sales manager for confirmation
ce
Analysis of abnormal causes On-site investigation The Customer Opinion Handling If the further
We are committed to offering perfect and high-quality service experiences for customers. In line with the "market-oriented and Table is submitted to the After-investigation is required sales Service Department
people-centered" management philosophy we have formulated a series of service rules covering pre-sale sale and after-sale
services to continuously improve customer satisfaction and provide customer with higher-quality and more stable products as Investigation conclusions correction and risk control Product replacement and return
well as first-class customer services.Processes for product return and replacement
Case Processes for handling quality complaints
Applicable to contract review control of the Company
Contract review Formulate clear adequate and reasonable requirements related to products for effective contract
procedures assessment quality control and through assessment determine that we have capacity to meet We have established a professional after-sales service team continuously improved service quality and formulated detailed plan
these requirements thereby satisfying customers to deal with quality complaints from customers so as to enhance our brand image and market competitiveness.Applicable to our monitoring and measurement of the satisfaction of external customers Yes Customer makes a complaint
Customer satisfaction Through customer satisfaction survey understand whether we have correctly understood and Receive survey and control complaints Determine closing
procedures satisfied customers' current and future needs and expectations improve QHSE management (determine whether or Salesman receives the complaint Application for Customer
system based on the results of survey and continuously improve customer satisfaction not to be governed by Complaint Handling
contract) Examination and approval by the manager
Applicable to the whole process of product sale services
Customer service Implement our quality policies assist customers in correctly using our products timely solve the No Before-sale Technology Support Department
control procedures relevant problems in the process of use provide customers with high-quality products and good
services and establish a good image of the Company Analysis Analyze
and define
responsibilities Non-quality measurement abnormalities Abnormal quality measurement
Actively Respond to Complaints Abnormal transportation Customer factor Abnormal quality Supplier's problems (third party) (use/storage) measurement (product and logistic
problems)
Meeting the needs of customers is one of goals we pursue persistently. We have formulated a set of perfect programs to solve
the problems and troubles customers may encounter in the transportation of goods or after-sales service so as to do our best to No
guarantee the smooth conduct of transactions. On-site investigation If necessary
On-site
On-site check investigation
On-site investigation
Case Processes for dealing with goods contamination during the shipping period Third-party testingAccepted by customer report
We have developed a series of accident handling processes to deal with possible goods contamination during the shipping period
Examination and Comments Examination
so as to reduce losses and safeguard the rights and interests of customers. approval by the manager and approval
Work out a No
solution Accepted by by the
customer manager
Sources of information on goods Analyze the process and determine Yes Work out a solution Yes
contamination during the shipping period Understand and collect information reasons therefor
Implement
the solution Implement the solution
Collect and file documents and materials Continuous improvement Handling opinions and methods Close the problem and Make a summary and keep it on record Continuously improve
keep it on file
Processes for handling quality complaints
Process for handling quality complaints47 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 48
Continuously Improve Customer Satisfaction
In 2022 IInndduussttrryy CCooooppeerraattiioonn
Good professionalism and capability of sales staff is a prerequisite for providing
quality services to customers. Therefore we carried out a series of training activities We sent
for sales staff to enhance their understanding of products to further improve their
ability to communicate with customers and improve customer satisfaction and 41customer satisfaction Industry Communication
service quality. questionnaires in total and received all of
We actively participate in formulating the national industry and group standards. Meanwhile we also strengthen the
them. The overall score in this survey is
understanding and learning of industry development by participating in exhibitions industry seminars and others. We always
97.3 maintain communication and contact with related industry associations and actively participate in relevant seminars to % understand the industry information development direction and dynamics so as to provide certain guiding direction for our R&D.
up by 0.5 % from
In 2022
96.8 % in 2021.
we participated in the formulation of 4 national standards 7 industry standards and 6group standards in total.Name of standards Category
Man-made fiber - Test method for tensile properties of filament yarns National standards
Energy consumption limit per unit product of ethylene plant National standards
Energy consumption limit per unit product of ethylene glycol National standards
Energy consumption limit per unit product of polypropylene National standards
Synthetic fiber - Test method for elastic properties of multiple-component composite
Industry standards
filament yarns
Synthetic fiber - Test method for elastic properties of two-component composite
Industry standards
Figure: Sales staff participated in training Figure: A letter of thanks from filament yarns
China Gas
The feedback on customer satisfaction is the evaluation of our previous service level Man-made fiber - Test method for heat storage and heat release properties of phase Industry standards
and also the direction and motivation for our future efforts. We send the customer change materials and differential scanning calorimentry (DSC)
satisfaction questionnaires from time to time to understand customer needs in time
promote the improvement of our own services and improve customer satisfaction. Melt spinning round hole spinneret Industry standards
Melt spinning shaped hole spinnerets Industry standards
Average score of customer satisfaction survey Polybutylene Terephthalate (PBT) draw yarn Industry standards
9.76 9.45 9.73 9.71 9.83 9.88 9.7310 Colored polyester pre-oriented yarn Industry standards
8 Carbon emissions benchmarks of petroleum refining industry Group standards
6
Polyester films for optical adhesive release films Group standards
4
Polyester films for window films Group standards
2
0 Polyester films for MLCC Group standards
Quality Timeliness Packaging Transportation After-sale Business Overall Polyester films for polarizer protection films Group standards
stability of delivery quality cooperation service cooperation score
Online coated release films Group standards49 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 50
Case Attend the Kick-off Meeting and Training Meeting for preparation of group standards Establish the Enterprise-university-research Cooperation
We actively participated in the university-enterprise activities and made use of our advantages to establish enterprise-university-
In August 2022 we attended the online 2022 Kick-off Meeting research cooperation with the universities so as to reserve talents for our future development and promote the continuous
and Training Meeting of the first batch of 11 group standards enhancement of our scientific and technological strength.in BOPET industry held by China Plastic Processing Industry
Association.Case Hengli Petrochemical Chemical and Dalian University of Technology cooperated in
rare earth rubber development and optimization project
With respect to new synthetic rubber products R&D Hengli Petrochemical Chemical entrusts
Dalian University of Technology with researching and developing synthetic rubber and
elastomer pilot technology development project to reduce our reliance on outsourcing rubber
Attend the Kick-off Meeting and Training Meeting for preparation of for ABS and PS devices further derive rubber products with excellent performance and improve
group standards the comprehensive performance of our ABS and PS products. In addition the said two parties
Case Entered the list of national-level enterprise standard "leaders" plan to complete the 1st phase of rubber development by December 2022. This project not
only can enhance our strength of technology R&D but also is an important measure for us to
achieve efficiency increase technological innovation and industrial upgrading. First pilot synthesis of high-end rubber products
Hengli Chemical Fiber and Hengke
New Material were entered the list of
2021 national-level enterprise standard Case Hengke New Material - established enterprise-university-research cooperation
"leaders" released in March 2022 with several universities
respectively by virtue of the enterprise
standards on "regular fine denier and We established long-term enterprise-university-research cooperation with Donghua
superfine denier polyester DTY" and on University and Nantong University which helps to give full play to our technological and
"polyester FDY" indicating that the core practical advantages and their advantages in talent cultivation and scientific research.indexes of polyester fiber produced Donghua University offered IP training to our technical staff regularly so that their
by us have outperformed national professional quality continues to improve also made full use of scientific advantages
standards and taken the lead in the of universities to provide theoretical and technical support for our regenerated fiber
industry. project and cationic dye dyeable polyester fiber project. Through in-depth enterprise-
Our technical discussion with Donghua University university-research integration our scientific research capability has been improved.Certificate of 2022 Enterprise Standard "Leader" Certificate of 2022 Enterprise Standard Case Deli Chemical Fiber - established cooperation with Donghua University
of Hengke New Material "Leader" of Hengli Chemical Fiber
We are also committed to actively cooperating with upstream and downstream enterprises in the industry chain keeping the The high hydrophilic high moisture-conducting and comfortable polyester filament preparation technology R&D and
supply chain of products stable and promoting common innovation and growth. industrialization project jointly developed by Deli Chemical Fiber and Donghua University is a key transformation project of
scientific and technological achievements. Based on polyester filament moisture transfer mechanism and with the human
Case Kanghui New Material established cooperation with famous pharmaceutical companies and comfort as the target the materials of that project achieved breakthroughs in preparation technology of melt direct spinning
downstream enterprises high hydrophilic and high moisture-conducting polyester melt high precision spinneret processing and spinning and forming
technology key preparation technology of high hydrophilic and high moisture transfer polyester fiber and textile products etc.Tetrahydrofuran (THF) a high-purity by-product in Kanghui New Material's production of PBT/PBAT biodegradable plastics has What 's more the innovation is made in the integration of polyester molecular structure design fiber preparation yarn forming
been applied to the R&D and production of innovative drugs extensively. Currently our annual production capacity of THF can fabric weaving and other key technologies. With these efforts an integrated key preparation technology system is formed covering
reach 24000 tons. Kanghui New Material established cooperation with many famous pharmaceutical companies both at home all elements of the processing industry chain including polymerization spinning and weaving.and abroad and provided them with THF in a long-term and stable manner throughout the year for R&D and production of
innovative drugs; In the process of project implementation a series of achievements were made and a total of 3 products were identified as
Jiangsu provincial new products by the Department of Industry and Information Technology of Jiangsu Province in 2022.Our polyester-based film products for PET composite collectors have realized mass production. Kanghui New Material established
cooperation with many large downstream fluid collection manufacturers and our products are well received on the market.Case Deli Chemical Fiber drives the linkage cooperation and innovation of industry chain
Deli Chemical Fiber 's downstream customer encounter several technical difficulties when using 15D/36F to develop high-grade
fabrics. Then the two parties finally solved such difficulties through effective communications. Meanwhile Deli Chemical Fiber
made use of this opportunity to promote such high-grade product nationwide. In 2022 we explored 29 high-end customers for
such product generating extremely high profit for the Company and creating more value for the society.Cross-sectional view of the high-profile composite spinneret jointly designed and developed51 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 52
EEmppllooyyeeee GGrroowtthh Talent Employment
We conducted comprehensive evaluation and analysis of candidates based on the information in the selection and evaluation and
We have formulated the Human Resources Management Rules and signed the Collective Contract with employees in accordance by taking diagnostic and statistical methods and then selected the most suitable personnel in accordance with the Administrative
with the Labor Law the Trade Union Law the Law on the Protection of Women 's Rights and Interests and the Regulations on Measures for Personnel Appointment and Measures for Selection of Personnel at the Shift Leader Level or above.the Prohibition of Using Child Labor and other laws and regulations so as to ensure a healthy and safe working environment for
employees guarantee fair and just treatment and remunerations prohibit nationality gender age disability race and religion
discrimination and treat all employees equally. Employment channels Employment methods Main targets
With adherence to the HR development philosophy of "putting people first" we attach importance to HR development quality
and give full play to the creativity and initiative of employees by talent training and corporate cultural promotion thereby making Internal open recruitment Employees on active duty
human resources create maximum value for the Company and achieving win-win growth of the Company and employees. Promotion and job rotation Excellent employees
Internal
Internal employee recommendation Employees ' families
Reemployment of retired employees Retired leaders
External open recruitment
Post recruitment information
Social members
External through recruitment platform
Recent and previous graduate
Campus recruitment
University-enterprise joint training
Implement performance
Optimize talent structure assessment and create an Strengthen talent ChenHR
and focus on cultivating environment in which the cultivation and establish 51job Social members
young highly-educated competent are elevated a specific hierarchy Online recruitment www. bjx.com.cn Recent and previous graduate
management and the mediocre are mechanism www.gtrgs.com
demoted
Moments
Social members
Micro-blogging recruitment Haichuan forum
Recent and previous graduate
Post Bar
Our recruitment methods and channels
Our HR development philosophy and policy
We comply with relevant laws and regulations adhere to the HR development philosophy of "putting people first" and win
national and local praise which is of critical importance to raising our public awareness and reputation in the industry attracting
the attention of external talents to us and enhancing our strength. we have3 8550employees
in total. Among them the employees
with whom we sign the labor contract
represent 99.77% and
employees with whom we sign the
collective contract represent 100%
Grade AAA Model and Harmonious Labor Relations Enterprise in Liaoning Top 10 China Excellent Employers in Chemical Industry53 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 54
By gender By age Employee Assessment and Incentives
6% We have established an employee performance management system consisting of four levels including company department
23% 14% workshop and employees. We decompose our strategic goals into department and workshop performance goals every year and
then into the employee performance goals so as to keep employees ' personal goals aligned with the Company 's overall goals.In accordance with the Administrative Measures for Performance Appraisal of All Employees our Compensation and Performance
48% Management Committee organized the signing of the "Safety Production Responsibility Certificate" and the "Business Performance
Contract and exercise comprehensive control of the performance of all employees. We implement the performance management
process of "whole-process control" and "continuous adjustment and revision" for performance appraisal.
77%31%
Male Female 30 and below 41-50
31-40 51 and above Application of
performance
By education By post Building of evaluation
performance results
1% 4% planning and
Performance
indicator system feedback and
15% 1% interview
4%72%
1%
58% Process control Performance Performance 16%
26% of performance management appraisal and
management processes evaluation
2%
Performance indicator system
Production Sales personnel Technical
Technical secondary school Undergraduate personnel personnel
and below
Finance personnel Administrat ive Service
Junior college diploma Master and above personnel personnel Case Kanghui New Material - set up assessment incentives
Others
In May 2022 Kanghui New Material formulated the Assessment Management Rules to regulate its management behaviour
We believe that veterans have healthy body and good behavior are ready to devote never shy away from hard work and have a strengthen department 's management responsibilities raise employees ' awareness of responsibility and obedience and
strong sense of team spirit and are strict with themselves. Therefore we take the initiative to recruit veterans and absorb talents effectively build incentive and restrain mechanism.from military camps in the "Discharge Season".Case Hengke New Material - demonstration base for veteran employment and entrepreneurship
Hengke New Material was recognized as the "Advanced Enterprise for Recruiting
Veterans" and entered the "Second Batch of Demonstration Bases for Veteran
Employment and Entrepreneurship in Jiangsu". Hengke New Material provided
veterans with opportunities to freely upgrade their education and skill level and with Grant rewards for departments or individuals Grant rewards to and impose punishments
the targeted planning of career development. The reemployment of veterans has an who have made contribution to production on departments (workshops) based on the
important role in promoting our militarization development. and operation our accolades safety and inspection and check by the HR Department the
environmental protect ion sc ient i f ic and Safety and Environmental Protection Department
Veteran employment and entrepreneurship
technological innovation development of new the office and other functional departments
In response to the relevant provisions of the Regulations on the Employment of the Disabled we do not reject recruiting the products of their implementation of production and
disabled promote the employment of the disabled and treat them equally in the process of employment. Given the physiological operation safety and environmental protection
characteristics of the disabled the employment of the disabled has special requirements for job types positions and employment basic management standards and meeting spirit.environments. Therefore we provide the disabled with job types and positions suitable for them which is not only the respect
and support for disabled workers but also the effective allocation and reasonable use of labor resources. We hired a total of 12
disabled employees for such positions as portal crane driver and packer. Kanghui New Material 's assessment incentives55 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 56
Career Development
We have formulated the Administrative Measures for First-line Employee Promotion the Administrative Measures for Selection
of Personnel at Shift Leader Level or Above the Administrative Measures for Internal Job Transfer of Employees the Specific
Training Plan for Reserve Cadres and other rules to regulate the employee career development path and promotion channels Navigating Plan
make employees career planning aligned with our development and continuously cultivate and reserve qualified talents for our
development. Navigating Plan 1.0: Implement such plan in the form of project for our junior managers;
We provide employees with career development planning and establish different career development channels for management Navigating Plan 2.0: Implement such plan by using three training methods including
marketing technology and production. These career development channels are connected with each other thereby forming a "offline workshop" "online business school" and "visiting" (a trainee can independently
comprehensive model. select one) for our senior managers;
Navigating Plan 3.0: Advocate continuous improvement of management skills and
research on management topics through "action leaning" and "study tours" for top
managers therefore forming internal management courses
Professional technology Production position Administrative Management
position system system position system position system Sales position system Spider-Man Plan
Implement the training plan for our shift leaders in the form of project for half a year and
Chief expert Vice president of Vice general manager Vice general manager Vice president of then keep tracking for 1-2 years
production marketing
Expert Production director Director
Director Director Netting Plan
Senior technical Workshop head
expert
Manager Implement the training plan for shift leaders in the form of online self-learning and offline
Engineer Senior manager
Intermediate Acting director
training with the learning cycle of one year
technical expert Shift leader Deputy manager Sales manager
Junior technical Senior production
expert Managerstaff
Head Management talent system of Hengke New MaterialSenior salesperson
Technical assistant Star production staff
Acting manager
General production Staff Salesperson
Technician staff
Intern technician Intern Intern Head Intern salesperson New Power Plan Source Power Plan Constant Power Plan
Our employee career development channels Conduct the talent training Add management knowledge Conduct the training for
project for technical talents professional knowledge and assistant engineers with
with the learning cycle of one skill training based on the t h e t ra i n i n g c y c l e o f 4
Improvement by Training year; content of "New Power Plan" in years focusing on business
In 2022 a total of 162 trainees respect of the training project ability advancement visual We have formulated the Administration Measures for Personnel Training to enhance our core competitiveness build an excellent for management trainees; e x p a n s i o n a n d a b i l i t y
team of employees improve management quality and work efficiency of employees carry out all kinds of training in an orderly participated in the training
manner and standardize the training. In 2022 a total of 19 trainees
expansion.participated in the training
We insist on implementing the strategy of "talent-driven enterprise" and aim to "assign tasks according to strategies practice what
you learnt learn what you practiced". Based on this we precisely identify training needs standardize training processes integrate
training resources and develop training plans for employees at different levels and in different positions so as to promote the
improvement of all employees ' abilities and quality.We offered customized training to employees in different posts such as management personnel and technical personnel. Hengke New Material Management talent system of Hengke New Material
and Jiangsu YXT Network Technology Co. Ltd. jointly launched online study platform - "Hengke YXT" with rich and diversified contents offering
over 700 subjects of courses. Meanwhile this platform has such functions as operation of training projects assignment of learning tasks and
community exchange helping us establish a learning organization to manage employee training efficiently and orderly. The key training projects of
Hengke New Material including "New Power Plan" "Source Power Plan" and "Spider-Man Plan" are operated through platform thereby forming a
complete training file for trainees and realizing the whole tracking management of the trainees ' learning.57 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 58
In 2022
Case 4th Training Camp of "Spider-Man Plan" Employee Salaries and BenefitsOur employees received
2517961 With respect to our compensation management system our HR Department has researched the HR system suitable for our In May 2022 Hengke New Material held the 4th Training Camp of "Spider-Man hours development and formulated medium and long-term strategic plan based on our strategic development needs. We have
Plan" for shift leaders in the form of project for half a year. In this training courses formulated the Detailed Rules of Compensation Management System to strengthen and regulate management of our employee
corresponding to grassroots management sequence quality model are offered of total training time with career promotion provide channels and directions for employee career development and determine a promotion system that
including the Role of Grassroots Managers the Situational Communication Training enables employee career to be aligned with our development.for Shift Groups the Team Management and Leadership Improvement the Lean Site 65 hours
Improvement to improve the comprehensive management skills of shift leaders in all Employee benefits is of importance in promoting employee motivation. Employee benefits gives employees a sense of belonging
aspects. raises the employees ' awareness of team responsibility and awareness of efforts thus enhancing the strength and core of training per capita and competitiveness of our team.
16 times of training per capita.
Statutory In accordance with the requirements of relevant laws and regulations our employees
Benefits are entitled to the following statutory benefits: five insurances and housing fund
statutory holidays rest days and labor protection.Economic benefits: employee shareholding holiday gifts and annual physical examination
and others
Spiritual benefits: occupational care mental health care and family care
Supplementary
benefits Facility benefits: provide staff cafeteria sports room commuter bus mother and child care
4th Training Camp of "Spider-Man Plan" room and other facilities
Cultural and sports benefits: organize staff travel group building activities annual celebration
sports competitions staff friendships group movie watching theme activities and others
Case Recent graduates participated in intensive induction training
Category of our welfare system
In July 2022 we organized 149 recent graduates from all over China to participate in the pre-employment training for one week
and the training contents included course training value chain tour and expansion training. This training accelerated the friendly Case Carnation service station for female employees
communication among new employees promoted new employees to learn the corporate culture and better integrate into the
Company. Our carnation service station for female employees is a full-
cycle health service platform for female employees using a
unified image logo "Carnation". This platform is based on the
caring mother and baby room and integrates the resources
of trade union staff service center home of staff and other
resources. We strive to provide female employees with various
services help female employees solve practical difficulties
meet their actual needs and serve as "her warm family".Carnation service station
Case Hengke New Material - learn reimbursement incentives
Given our ever increasing demand and requirements for talents Hengke New Material pays tuition fees for employees who attend
junior college and undergraduate courses for improvement during their employment with a view to encouraging employees
to improve their quality through self-regulated learning. Meanwhile Hengke New Material arranges certificate training and
examination for special operation workers and reimburse them for the costs of obtaining certificate. In 2022 a total of 664
Recent graduates participated in intensive induction training employees participated in special operation training and reimbursed them for expenses in the amount of RMB 156565.59 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 60
Care for Employees
Our development is inseparable from the hard work of every employee. In order to establish our good social image improve our
brand image attract motivate and retain employees we provided all employees with rich and diversified club cultural activities Case Activities at Women 's Day
and carried out special activities for various groups such as female employees single employees employees in difficulties and
veterans.We held various cultural care activities to commemorate the 112th anniversary of "International Working Women 's Day on March
8" showing care for our female employees.
Case Special activities show concern for employees
With the philosophy of "making employees harmonious healthy and happy every day" and in light of the principle of education
through lively activities we actively carried out colorful healthy upright cultural activities including political study labor
competition skill training cultural study art performance sports competition fitness and recreation to form our own corporate
cultural characteristics.Kanghui New Material 's "Women 's Day" activity Deli Chemical Fiber 's "Fashion Women" activity
Dumpling-making at the Spring Festival
Case Assisting disadvantaged employees
In January 2023 representatives of Dalian Changxing Island
Industrial visited disadvantaged employees and gave them
allowances to enable them to have a warm and peaceful
Spring Festival expressing our care for disadvantaged
employees.Activity at the Dragon Boat Festival
Allowances to disadvantaged employees
Case Fellowship activity for single employees
Singing contest at Mid-autumn Festival We conduct colorful fellowship activities to promote the communication among single employees and provide heart-warming
benefits for employee lovers in a relationship such as couple photo.Basketball game
Fellowship activity for single employees61 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 62
Employee Satisfaction Woorrkk SSaaffeettyy
Employee satisfaction refers to employees ' attitudes and emotional responses to various
aspects of our work after comparing the gap between the actual value they received and We have formulated a series of work
the value they expected to receive. The survey of employee satisfaction plays an important safety documents including the Health
role in our development and becomes an important tool for daily management. Through and Safety Management Rules the
employee satisfaction survey we can "diagnose" the problems in our own management Work Safety Rewards and Punishments
and then "treat" them in a systematic manner thereby improving our management Management Rules the Occupational
increasing productivity and reducing staff turnover rate. Disease Hazard Prevention and Control
We set up opinion boxes in each office building and rack room of the plant to timely receive Responsibility Rules the Management
employees ' opinions and suggestions and designate a special person to regularly collect Rules of Protective Equipment for
and organize them and to timely give feedback to the manager of the relevant department Practitioners in strict accordance with
so as to actively solve the problems in the day work and life of the staff. the Work Safety Law the Occupational Opinion box Disease Prevention and Control Law
the Administrative Measures for Work
Safety Training the Regulations on
Work Injury Insurance the Regulations
Case Employee satisfaction survey and analysis on the Reporting Investigation and
Disposition of Work Safety Accidents
In August 2022 we conducted the employee satisfaction survey to further understand employees ' satisfaction of our organization and other laws regulations and rules
management relationship work relationship work return work and logistics. to ensure the safety and health of all
stakeholders in the production process
and prevent and reduce production
safety accidents.Aspects with higher satisfaction Aspects to be improved
On-time pay environmental hygiene greening Should organize more amateur activities increase
equipment and facilities and general management the frequency of shuttle buses and stations and add
business skills training courses
Satisfaction results
Occupational Health and Safety Management
Based on satisfaction results we set up appropriate cultural sports and recreational activities and organized business ability System Certificates of some subsidiaries
training courses to effectively promote employees ' work motivation enhance their sense of identification with the Company and
their sense of responsibility at work and give them confidence in our development vision and future outlook.Occupational health and safety Occupational health and safety
management philosophy management strategy
Adhere to the people-oriented philosophy Shoulder our responsibilities as an enterprise meet the
and improve the harmonious development health and safety needs of employees raise employees
' awareness of environmental occupational health and
safety make each and every employee participate in
system building establish an effective documentation
management system and continuously improve it
prevent and control accidents and hazards and keep
improving safety performance
Satisfaction survey site Occupational health and safety management philosophy and strategy63 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 64
We promote the 8S management system to achieve the purpose of "putting people first and going concern" so as to establish a
good work environment create a harmonious management atmosphere ensure the work safety and employee health and safety Case Kanghui New Material - conduct safety hazards identification training
and improve our image.
8S management In August 2022 Kanghui New Material carried out training on the
concept identification of relevant safety hazards in the construction phase
and future production. This training enables employees to timely
1S: Organizing 2S: Putting in order 3S: Cleaning up 4S: Maintaining understand the focus of safety hazards identification in each stage
Distinguish "what you want" Put "what you want" in Clean up the dirt in the Institutionalize and further enhances the safety ideological awareness quality and
and "what you don 't want" order as required and workplace deal with the standardize the skills of our relevant management personnel fully mobilizes and
and give away "what you don clearly mark them equipment abnormalities implementation of improves the initiative and motivation of our employees in work
't want" immediately and prevent the above 3S and safety and prevention of various accidents and plays a positive role
the pollution maintain the effect in effectively implementing our main responsibility as an enterprise
and strictly preventing various accidents. Safety hazards identification training
8S: Studying 7S: Saving 6S: Safety 5S: Quality
Learn strengths and Advocate saving and Comply with rules and take Every one acts as required Chemical Management
improve quality eliminate waste preventive measures and develops good habits We have formulated the Dangerous and Precursor Chemicals
Management Rules to strengthen the management of dangerous In 2022
chemicals in the process of loading and unloading transportation
storage custody production use and disposal at the end of life so
In 2022 we conductedas to prevent dangerous chemicals (including precursor chemicals)
from infringing on human health and to prevent poisoning
we invested RMB chemical safety drills.explosion injury and death accidents and from endangering 126
Safety Hazards Identification 428.64 personal safety and normal production. We have formulated the million in work safety Emergency Plan for Chemical Hazardous Waste Leakage to protect
We conduct safety hazards identification from time to time to timely find and solve our normal production safety of property and personal safety of
safety hazards and protect people 's lives and property. Meanwhile we regularly offer and offered 237safety training our employees clarify the emergency measures in case of potential
safety hazards identification training to raise employees ' awareness timely find chemical/hazardous waste leakage fire and other accidents prevent
safety hazards and avoid accidents thereby providing a strong guarantee for our 121 or reduce the possible accompanying environmental impact and sessions and lost working days
sustainable development. minimize the economic loss and environmental pollution.due to work-related injury.Case Deli Chemical Fiber – conduct the emergency Case Kanghui New Material - chemical
52 drill of hazardous chemicals leakage prevention drillWe conducted times of company-
level safety hazards identification in total Deli Chemical Fiber conducted the chemical emergency In January 2022 Kanghui New Material organized THF barrel
drill to fully evaluate the emergency preparedness discover filling and tanker filling operation training for employees. This
and found 12623 company- and timely correct the deficiencies and shortcomings in the training aims to enable employees to understand the correct
emergency rescue plan implementation procedures and THF barrel filling operation THF tanker filling operating
897 rescue activities so as to further improve the response rescue methods and workflows which has a significant meaning in level safety hazards; and times coordination and combat capacities of the emergency rescue preventing and quickly handling chemical leaks.
of workshop-level safety hazards system.identification and found workshop-level
29826 safety hazards with
100% of correction rate.
Hearing Protection Required Please Use the Handrail
Safety signs Chemical emergency drill THF barrel filling and tanker filling operation training65 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 66
Special Equipment Management
In 2022 In 2022
We require all departments to strictly perform the Rules for the Special Equipment
Use and Management and other safety management systems strictly implement we had
the responsibilities of subjects continuously offer training to licensed operators of
special equipment strengthen daily check and maintenance of equipment to ensure
safety operation of special equipment. 337 safety administrators.the fire brigade of Dalian Changxing the fire brigade of Suzhou the fire brigade of Nantong
Case Kanghui New Material - conduct safety management training
Island Industrial Park is equipped Industrial Park is equipped Industrial Park is equipped
on special equipment
with39fire fighting trucks with 5 fire fighting trucks with 3 fire fighting trucks
In December 2022 Kanghui New Material conducted the training on special equipment
safety education to improve safety managers ' knowledge reserve and strengthen the and186professional firefighters. and 30professional firefighters. and 45 professional firefighters.management and use by departments of special equipment. Through this training
Kanghui New Material 's safety managers have an in-depth understanding of laws and
regulations operation specifications and daily safety management related to special
equipment so that their awareness of safety management and responsibility is further
raised and their management level is improved. Also its safety managers are capable
of "early detection judgement warn and disposal of" safety hazards helping Kanghui
New Material consolidate its work safety defense line.the fire brigade of Yingkou the fire brigade of Suqian
Fire Safety Industrial Park is equipped Industrial Park is equipped
As a large chemical enterprise we strictly abide by the fire safety rules and establish with 3 fire fighting trucks with 1 fire fighting truck
a full-time fire brigade to strengthen the guarantee of work safety. Our full-time
fire brigade always follows the principle of "prevention first combination of fire and 14 professional firefighters. and 7professional firefighters.prevention and fire fighting and participation by everyone". Under the guidance of
the relevant department at the higher level it gives its subjective initiative into full
play carefully studies the characteristics of our firefighting and actively takes effective
measures to prevent fire so as to safeguard our high-quality development.Case Hengli Chemical Fiber - conduct the joint Case Kanghui New Material - conduct the fire
fire fighting drill fighting drill
In May 2022 the fire brigade of Hengli Chemical Fiber and In June 2022 Kanghui New Material conducted a fire fighting
Wujiang Fire Brigade held a joint firefighting drill to effectively drill for natural gas leakage in the thermal media station
strengthen the daily safety work of Hengli Chemical Fiber to raise employees ' awareness of fire safety and test the
improve the fire safety quality of all members safety prevention operation status of each professional team of the emergency
and fire fighting ability. A total of 64 employees participated rescue system and its ability to deal with sudden fire accidents.Fire Brigade of Hengli Chemical Fiber in this drill. This drill further strengthens the ability of the fire A total of 13 employees participated in this drill.brigade of Hengli Chemical Fiber and Wujiang Fire Brigade to
jointly dispose of major fire accidents laying a solid foundation
for future emergency in an efficient and orderly manner.Fire Brigade of Hengke New Material
Joint fire fighting drill Kanghui New Material 's fire fighting drill67 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 68
Case Hengke New Material - the fire brigade as a pioneer protects Kaisha Island Case Susheng Thermal Power - conduct the drill for rescuing dock personnel falling into water
The full-time fire brigade of Hengke New Material not only In February 2022 Susheng Thermal Power conducted the
plays an important role in guaranteeing the internal fire drill for rescuing dock personnel falling into water. This drill
fighting and stability maintenance but also undertakes the is designed to further raise employees ' awareness of safety
emergency rescue tasks of the whole Kaisha Island. After precautions when working on water or underwater enable
the fire brigade of Hengke New Material joined Tongzhou the participants to master and be familiar with drowning
District Firehouse Branch in 2018 it accepts the arrangements emergency rescue skills improve employees ' ability to avoid
by Nantong Firehouse Branch at any time and fulfills the and resist accidents and increase their alertness to accidents.commitments of "doing whatever is requested and providing
hospitable services". While undertaking rescue tasks this fire
brigade participated in many competitions maintaining its
Drill for rescuing dock personnel falling into water
excellent results and ranked 1st in the martial art contest of
provincial full-time fire brigades.Accolade granted to the fire brigade of Hengke New Material in the
martial art content
Health and Safety
Case "119" fire publicity month activities
We care a lot about our employees ' health organize regular
In November 2022 our industrial parks carried out a series of activities around the theme of "focusing on fire safety and physical examinations for employees and have formulated
guaranteeing high-quality development" to continuously improve safety production skills of employees and enhance the the Occupational Disease Prevention and Control Plan
emergency ability. and Program. We have established a leading group of
occupational disease prevention and control to supervise
the system management and action of our occupational
disease prevention and control so as to ensure the accurate
Hengli (Suqian) Industrial Park carried out diversified and colourful activities such as publicity and education safety inspection achievement of the occupational disease prevention and
and fire drills to further strengthen employees ' awareness of fire safety awareness and improve their ability to fight against control goal. Meanwhile each plant has a mental health room
emergencies. to guarantee the mental health of all employees.Psychological counseling room
Hengli (Nantong) Industrial Park Hengli (Huizhou) Industrial Park
organized the Emergency Rescue actively carried out a series of "fire
Skill Competition and the 6th "119" publicity month" activities and
Emergency Rescue Game in 2022. organized continuing education and In 2022
fire emergency drills for hazardous
chemical production units. the occupational health
examination rate was
100%
While conducting regular fire safety Hengli (Suzhou) Industrial Park
inspection and safety training Hengli carried out the 3rd Safety Skill Contest
(Dalian Changxing Island) carefully Activity and Work Safety Knowledge
organized three sectors including Competition Activity in 2022 of
petrochemical refining and chemical to Hengli Group. The activities cover all
respectively conduct the fire emergency production and auxiliary departments of
drill "without going through the the Industrial Park fully demonstrating
motions and without reducing effects". our great importance to work safety.Supporting
Green Development
We are well aware that long-term sustainable development cannot
be achieved without good environmental management and
resource management. Since our establishment we have adhered
to the idea of building a "green eco-friendly and harmonious
Hengli" devoting ourselves to improving the efficiency of resource
utilization and exploring the innovative green development
model. We take it as our mission to build a resource-saving and
environmentally friendly company.71 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 72
EEnnvviirroonnmeennttaall Maannaaggeemeent o
nor
nt In 2022
Hengli Petrochemical strictly abides by environmental laws regulations and requirements and complies with industry standards The number of the national-level "Green Factory" of the Company has increased to five the Company invested RMB
related to environmental risk management. We align ourselves with the latest international norms standards and best practices being Hengli Petrochemical (Dalian) Hengli Petrochemical Refining Hengli Chemical Fiber
incorporating them into how we manage our production. We have issued the Statement on Environment System regularly Hengke New Material and Hengli Petrochemical Chemical and Deli Chemical Fiber was 248 million in
supervising reviewing and evaluating the effectiveness of our environmental management system through our board of directors. recognized as "Jiangsu Green Factory".environmental protection.Environmental Management System
The Company is committed to eliminating environmental risks. We ensure stable operation of various environmental protection
facilities continuously improve energy efficiency and control pollutant emissions. We carry out comprehensive recycling on solid
waste and safely dispose of the solid waste that is unrecyclable. We have continuously improved the quality of operations of our
safety and environmental protection information management platform implemented hierarchical management of environmental
risks and improved environmental protection incentives restraints and accountability to reduce adverse impact on environment.We have regularly carried out environmental monitoring and assessment comprehensive investigation of environmental risk and Hengke New Material was recognized as Deli Chemical Fiber was awarded
hidden dangers to eliminate potential environmental risks in time. "National Green Factory" "Green Factory of Jiangsu Province".During the reporting period we violated no environmental protection laws or regulations had no pollution-related disputes and
received no administrative penalties for violating environmental protection laws and regulations. Environmental Emergency Response and Training
The Company continues to improve its response mechanism
for environmental emergencies establishing an emergency social level
planning system and an on-site disposal plan. Referring to "1.5 Level I
Event Classification" in the National Plan for Environmental enterprise level
Emergencies combined with distribution of major hazards
Level II workshop level
and environmentally sensitive areas we have implemented
classified management on environmental emergencies device level
organizing emergency drills regularly so that we can better Level III
prevent and respond to possible environmental pollution and
damage that may occur during construction and production. Classification of environmental
Level IV emergencies
Environmental accidents and potential emergencies identified by the Company include:
Fire or Leakage of dangerous Water
explosion Typhoon Rainstorm chemicals pollution Other accidents
Environmental management system certificates
Environmental emergency drill Environmental protection training
H
s73 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 74
TTrreeaattmeenntt ooff TThhrreeee Waasstteess Case Hengli Petrochemical (Dalian) - R2R unit waste recovery
Hengli Petrochemical (Dalian) uses R2R units to dispose
of the residue produced during the oxidation reaction of
Pollution Control and Management purified terephthalic acid and recovers the valuable cobalt manganese catalyst components and benzoic acid. The
catalyst metal recovered is returned to the oxidation unit for
Hengli Petrochemical is committed to reducing energy and material recycling. The benzoic acid produced is sold as a by-product.consumption and pollutant emissions continuously implementing
various pollution control measures and facilities for water gas noise
and solid waste to ensure the stable discharge of pollutants. We have R2R units Benzoic acid product
reduced resource consumption and environmental pollution through
our pollution control and reduction project.Case Hengli Petrochemical (Dalian) Hengli Petrochemical Refining - mine backfilling
Case Hengli Chemical Fiber - coal to gas project Hengli Petrochemical (Dalian) and Hengli Petrochemical Refining
signed cooperation agreements with Dalian Yongji Environmental
Protection New Materials Co. Ltd. on the first phase project of
Hengli Chemical Fiber has fully implemented the spirits of the Notice on restoring lucid waters and lush mountains on the south side of
Issuing the Implementation Plan of the Special Action of "Two Reductions Changxing Island Industrial Park in Dalian. The fly ash produced
Six Treatments and Three Promotions" by the General Office of Jiangsu during the production and operation of thermal power plants is
Provincial Government and the Implementation Plan of the Three-year temporarily stored in the intermediate tank ash bank and slag
Blue Sky Protection Campaign in Jiangsu Province. It has also established bank of the workshop. After some accumulation the fly ash is then
In 2022 a special group to proactively accelerate the "coal to gas" transformation. transported to the quarry pit abandoned after the open-pit mining
Hengli Chemical Fiber has built 4 sets of 8.6 million Kcal/H "oil and gas dual- was completed on the south side of Changxing Island by closed tank
Hengli produced a total of fuel" boilers 9 sets of 10 million Kcal/H "oil and gas dual-fuel" boilers 2 sets trucks and dump trucks to be backfilled according to the designed
2.191 of 8.6 million KCal/H gas-fired boilers and transformed 2 sets of 10 million elevation. Greenery is added to complete the restoration of the million tons of general KCal/H "oil and gas dual-fuel" boilers. waste pit. Every year 2.0428 million tons of fly ash cinder and The mine after restoration and treatment
other solid wastes are treated this way. Some of the ash and gypsum
industrial solid waste of which Indicator Sulfur dioxide Nitrogen oxides Particulate matter can be used to produce cement according to market demands.
2.1898 million tons were recyclable; Pollutant emissions from coal-fired boilers 16404.88 97516.63 4200.98
(KG) Case Deli Chemical Fiber - hazardous waste warehouse upgrading
The total amount of hazardous waste produced was
Pollutant emissions
30000 from gas-fired boilers 876 17520 2628 In August 2022 Deli Chemical Fiber upgraded its existing hazardous waste warehouses in order to better protect the environment tons. (KG) improve the management of hazardous wastes and warehouses and strictly implement environmental protection policies. Over
RMB 60000 was invested in the project which is to be completed and put into use in September.Pollutant reduction
(KG) 15528.88 79996.63 1572.98
0.0986 tons of general industrial solid Proportion of 94.66 82.03 37.44 Firstly the accident emergency pool was upgraded and transformed (the original reduction (%) accident emergency outdoors has been abolished);
waste per RMB 10000 of revenue Results of the coal-to-gas transformation
0.0985 Secondly the anti-seepage and anti-corrosion facilities of the warehouse were tons of recyclable waster reinforced expanding the protection area by about 100 square meters;
Solid Waste Management Upgraded
per RMB 10000 of revenue
Hengli Petrochemical has been properly collecting storing transporting items Thirdly sealing was enhanced throughout the warehouse with the internal sealing
utilizing and disposing of solid wastes to ensure no pollution or secondary
0.0014 area up by about 150 square meters;tons of hazardous waste pollution to the environment caused during the production sales and
use of solid wastes. Meanwhile it has been restoring terminated industrial
solid waste storage sites in accordance with environmental protection
per RMB 10000 of revenue regulations. It has entrusted the comprehensive recovery of hazardous Fourthly the video surveillance equipment was upgraded with explosion-proof devices to ensure that the equipment operates more safely and effectively.solid wastes to qualified third parties.75 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 76
Waste Water Management
In 2022
Hengli Petrochemical has formulated the Measures for the Treatment
and Management of Wastewater Pollutants (Detailed Rules for The total amount
Implementation) to effectively dispose of and discharge production of wastewater 0.7446 tons of
wastewater domestic sewage initial rainwater emergency drain and discharged was Aerobic wastewater per RMB
firewater. The Company has established operation process indicators biochemical 10000 of revenue pool
and kept records of wastewater treatment facility operations and 16.554 Refined Sedimentation
regularly carried out maintenance on wastewater treatment facilities. sand carbon million tons. tank filter
The usable wastewater recycled was returned to the production
system to reduce wastewater discharge.Reclaimed
UASB
Proportion of total water reuse anaerobic
Company or Subsidiaries Name of main pollutants and Total emissions emissions to the approved pool of sewage particular pollutants (ton/year) towertotal emissions (%) Measures to reduce station
Wastewater 2107548.58 / wastewater discharge
Chemical oxygen demand 39.31 16%
Hengli Petrochemical
Ammonia Nitrogen 0.39 2%
Refining
Total phosphorus 0.47 /
Total Nitrogen 16.99 24%
Wastewater 1701882.00 /
Chemical oxygen demand 26.02 13%
Hengli Petrochemical
Ammonia Nitrogen 0.06 0%
Chemical
Total phosphorus 0.20 /
Total Nitrogen 12.74 21%
Wastewater 11233566.06 / Refinery Aromatics Chemical Power plant Waste Ethylene Water Reuse water
Chemical oxygen demand 303.54 54% wastewater wastewater effluent desulfurization miscellaneous waste alkali meeting
Hengli Petrochemical
Ammonia Nitrogen 0.54 0% wastewatert alcohol solution solution standards
(Dalian)
Total phosphorus 2.02 /
Total Nitrogen 90.41 38% Comparison of untreated and treated wastewater
Wastewater 51038.00 /
Chemical oxygen demand 0.85 10%
Hengli Chemical Fiber Ammonia Nitrogen 0.04 6%
Total phosphorus 0.003 4% Case Deli Chemical Fiber - desulfurization wastewater treatment upgrading project
Total Nitrogen 0.59 10%
Wastewater 82592.11 79% In order to protect the environment Deli Chemical Fiber strictly follows requirements of environment authorities lifting boiler
Deli Chemical Fiber Chemical oxygen demand 2.03 5% exhaust emission standards and upgrading its boiler desulfurization wastewater pretreatment system. The project has over RMB 0.8
Ammonia Nitrogen 0.03 5% million of investment replacing the original treatment system with more advanced facilities that are more automated intelligent
Wastewater 940744.00 / and efficient and support safer more efficient and environmentally friendly operations.Chemical oxygen demand 15.20 5%
Hengke New Material Ammonia Nitrogen 0.97 16%
Total phosphorus 0.07 8%
Case Hengli Chemical Fiber - reclaimed water reuse
Total Nitrogen 5.22 /
Susheng Thermal Power Wastewater 10733.00 98%
Hengli Chemical Fiber combines biological aerated filter and low concentration wastewater treatment technologies using the
Wastewater 425950.00 65% biological oxidant suspended solid interception technology of biological aerated filters to thoroughly dispose of wastewater
Kanghui New Material Chemical oxygen demand 8.47 29% through plant and microbial adsorption technologies. The reclaimed water is then reused using our existing industrial tap water
Ammonia Nitrogen 0.31 11% and circulating water system.77 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 78
Waste Gas Management
In 2022
Hengli Petrochemical has introduced waste gas treatment and
emission reduction equipment and implemented monitoring Total exhaust emission Case Hengke New Material - waste gas treatment
and management of waste gas emission concentration and of the Company was 6009.92 m3
emission to ensure compliant and safe emission of waste gas 133.615 of exhaust emission per RMB Hengke New Material has put caps on all sewage treatment ponds to prevent methane gas from overflowing. It also uses after treatment by environmental protection facilities. billion m3. 10000 of revenue ventilation pipes to collect greenhouse gases such as methane produced in the anaerobic treatment process which are then used
as fuel in canteens in order to eliminate methane gas emission.Company or Subsidiaries Name of main pollutants and Total emissions
Proportion of total
particular pollutants (ton/year) emissions to the approved total emissions (%)
Sulfur dioxide 1043.10 49%
Hengli Petrochemical Nitrogen oxides 2004.64 40%
Refining Soot 96.49 10%
Non-methane hydrocarbon 3224.91 98%
Sulfur dioxide 37.60 32%
Nitrogen oxides 423.50 43% Hengke New Material Hengli Petrochemical waste gas collection and
Chemical Soot 7.29 5% treatment device
Non-methane hydrocarbon 239.51 32%
Sulfur dioxide 198.18 42%
Hengli Petrochemical Nitrogen oxides 345.05 51%
(Dalian) Soot 11.61 4%
Non-methane hydrocarbon 76.84 8%
Sulfur dioxide 16.04 11%
Case Hengli Petrochemical (Dalian) - thermal power plant ultraclean treatment
Nitrogen oxides 97.52 48%
Hengli Chemical Fiber
Particulate matter 4.20 14% Hengli Petrochemical (Dalian) Coal-fired Thermal Power Plant adopts the ultra-clean treatment technology achieving a
VOCs 0.74 39% denitrification efficiency of 84% dust removal efficiency of 99.99% and desulfurization efficiency of 98.4%. The concentration of
Sulfur dioxide 1.18 3% flue gas after treatment is lower than the national ultra-low emission standard for power plants.Deli Chemical Fiber Nitrogen oxides 20.00 59%
Particulate matter 0.42 6%
Sulfur dioxide 5.00 2%
Nitrogen oxides 8.82 3%
Hengke New Material
Particulate matter 4.44 8%
VOCs 0.66 2%
Sulfur dioxide 26.06 6% Hengli Petrochemical (Dalian)
Susheng Thermal Power Nitrogen oxides 134.14 15% thermal power plant fully
enclosed green coal bunker
Particulate matter 7.19 4%
Sulfur dioxide 3.14 16%
Kanghui New Material Nitrogen oxides 27.28 30%
Particulate matter 27.45 54%79 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 80
Resource S In order to save energy cut consumption and promote green development the Company has formulated the Measures for Resource Saavviinngg Managing Rewards for Energy-saving and Consumption-reducing Technological Transformation Projects which give rewards on
innovative and efficient energy-saving and consumption-reducing technological transformation projects1 so as to encourage
employees to be more proactive in contributing to the Company's energy saving and consumption reduction efforts.Energy Conservation
In 2022
Hengli Petrochemical advocates green development having formulated the Energy
Management System to fully promote the construction of its energy management system. Power consumption is
We prioritize energy conservation and emission reduction continuously improve our Project filing Implementation review Fund release
utilization of energy and promote systematic and reasonable energy management. 1086763.30
All projects applying for energy- After a project is completed the One year after the project starts
tons of standard coal equivalent saving and consumption- implementation department running the implementation
reducing technological shall fill in the Filing Form for department shall fill in the Form
Natural gas consumption is transformation rewards should Completion of Energy-saving of Energy-saving Technical
199789391 m3 be filed before implementation. Te c h n i ca l Tra n s fo r m at i o n Transformation Project Benefits Projects among other relevant among relevant materials. A
materials. A meeting will be meeting will be organized by
LPG consumption is organized by the Enterprise the Enterprise Management
7938272 Management Department to Department to review and issue tons review and issue the project the project benefit award.
implementation reward.Steam consumption is
Energy management system certificates of some of our subsidiaries Energy-saving and consumption-reducing technical transformation project management
46734941588 m3
Hengli Petrochemical Chemical as a leader in energy efficiency
Case Hengke New Material - steam waste heat Case Hengli Petrochemical Chemical - graded
Steam coal consumption is refrigeration use of steam
No.1 in the ethylene industry 7938272 tons Hengke New Material uses esterified steam discharged from To improve energy efficiency Hengli Petrochemical Chemical polyester plants to produce 80-95℃ hot water through the avoids using large amounts of steam through the temperature
Energy consumption per unit product is hot water plate which provides heat for the hot water-fired and pressure reducer. Using a back pressure steam turbine
533.73 Diesel consumption is kgoe/t lithium bromide refrigerator. Hot water-fired lithium bromide unit the ethylene plant of Hengli Petrochemical Chemical
Hengli Petrochemical Chemical 192689 refrigerators were installed in the public refrigerator room drives its surplus of high-pressure steam to meet technical tonsas a leader in energy efficiency using hot water as energy source to produce 7℃ chilled water demands and increase power generation. The annual power
for polyester process and air conditioning. This shortens the generation capacity is 24.53 million kWh reducing the energy
Hengli Petrochemical Refining as a leader in energy efficiency Petrol consumption is operation time of electric refrigerators and makes full use of consumption by 3014 tons of standard coal.polyester esterified steam in the production line.No.1 in the No.2 in the crude oil 204590 litres
paraxylene industry processing industry Case Kanghui New Material -biogas power generation
Fuel oil consumption is
Energy consumption Energy consumption
per unit product is per unit product is 4849 Kanghui New Material collects biogas produced by 7 anaerobic tons
236.67 kgoe/t 6.89 towers through outlets on the top. The collected gas is Hengli Petrochemical Refining kgoe/t * factor transported to the biogas collection tank through the pipeline
as a leader in energy efficiency Renewable energy consumption is for storage and then pressurized by the fan before being
75076858 transported to the biogas generator for power generation. Hengli Petrochemical (Dalian) as a leader in energy efficiency kWh The electricity generated is supplied to the fans and pumps
of the sewage station. The biogas power generation system
Note: (1) The gasoline/diesel usage of effectively eliminates direct emissions of biogas and achieves
No.1 in the purified terephthalic acid industry vehicles only includes vehicles owned the purpose of protecting the environment and saving energy.by the Company excluding third party Back-pressure steam turbine unit
Energy consumption per unit product is transport vehicles 1
28.46 Energy-saving and consumption-reducing technological transformation projects refer to the innovative and efficient energy-saving and kgce/t (2)The calculations of electricity are consumption-reducing technological transformation initiatives proposed by employees of the Company which have remarkable economic benefits
Hengli Petrochemical (Dalian) as a based on the Standard Coal Coefficient after being implemented during production. Specifically they include application of new materials new processes and new technologies with
leader in energy efficiency of Various Energies in the GB/T 2589- obvious benefits for the effective utilization of energy and cost and consumption reduction; adoption of advanced technology to solve problems of
process flows and equipment operation; improved equipment operation efficiency and optimized processes for energy saving and consumption
2020 General Rules for Calculation of reduction; and other initiatives that are effective for energy saving consumption reduction cost saving and efficiency improvement.
Comprehensive Energy Consumption.81 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 82
Case Hengli Petrochemical Chemical - green decarburization measures
Hengli Petrochemical Chemical pays attention to energy
consumption management and strives to reduce carbon dioxide
emissions. A decarburization tower was installed in the ethylene
glycol plant in addition to its currently running scrubbing tower to
improve catalyst performance. This not only increased the output
of products but also reduced the carbon dioxide emissions.reduced the carbon
dioxide emissions by
39600 tons annually Water Conservation
In terms of water resource management and protection Hengli Petrochemical strictly abides by the laws and regulations on
Decarburization tower water resources management such as the Water Law of the People's Republic of China the Water Pollution Prevention Law
of the People's Republic of China and the Environmental Protection Law. Meanwhile the Company regards it as its mission
to build a water-saving enterprise issuing the Statement on Water Resource Management and Control to show long-term
commitment to water-saving management. During production and operation the Company continuously improves water
Case Hengli Petrochemical Refining -energy-saving equipment resource management increases the utilization rate of water resources and promotes ecological construction and high-
quality socioeconomic development.Hengli Petrochemical Refining has transformed its main equipment to improve energy efficiency.Indicator Unit 2022
Compressor Variable frequency motor
Municipal water purchased m3 33167949
According to the changes 7 3 4 u p - c o n v e r t e r 3
of operation load of large motors were added 726 Surface water used m 109635838
compressors 9 sets of were implemented. The Rainwater collected m3 198559
stepless gas regulation power saving rate was
systems were set up for large about 30 .9%. Total amount of circulating/reclaimed water m3 5976971
reciprocating compressors
to optimize operation and Total annual amount of water saved by using m3 3510260
reduce power consumption. reclaimed water reuse equipment Hengli Petrochemical Refining as a
leader in water use efficiency
Reclaimed water reuse rate % 77
Note: Reclaimed water reuse rate = (External supply to utility + External supply to power plants)/ (External drainage produced by ethylene facilities +
External drainage produced by refinery facilities + External supply to utility + External supply to power plants) * 100%
Hydraulic turbine Heating furnace
Case Hengli Petrochemical Chemical - water saving measures
12 sets of hydraulic turbines A waste heat recovery
were set up to drive large system was installed for To save water resources Hengli Petrochemical Chemical strengthens water management and makes rational use of water resources. The
pumps and reduce power the flue gas discharged company used ultrafiltration water in sewage workshops to replace production water saving 222600 tons of water annually; a liquid wax
consumption by utilizing by the heating furnace loading process has been added in polyethylene plants reducing production water consumption saving 11300 tons of water annually.the residual pressure of to exchange heat for
m ate r i a l s i n t h e h i g h - heat recovery. Exhaust
pressure hydrogenation gas temperature of the Case Hengli Petrochemical Refining - direct utilization of seawater
unit. Variable frequency furnace was designed as
motors were adopted for 140 ℃ and the efficiency Hengli Petrochemical Refining replaces its traditional open cooling tower with a combination of closed circulating water cooling and
pumps with large power of the furnace was 92%. open seawater cooling systems. In the circulating water station the heated circulating water is cooled by seawater which is then
changes under different reused or discharged into the sea. The circulating water cooled by seawater is then pumped to the process unit for heating again. The
operating conditions. circulating water is always in closed circulation and never consumed saving fresh water resources.83 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 84
Renewable Resources
In response to national policies Hengli Petrochemical has
optimized its energy mix and actively explored renewable
substitutes for non-renewable energy. At the time the
renewables we are mainly using include solar energy and
biomass energy2.Case Photovoltaic power generation project Case Hengke New Material - biomass heat supply
The Company has launched photovoltaic power generation Hengke New Material uses biomass heat-conducting oil furnaces and biomass steam furnaces for heat supply. The first phase of the
projects to realize production that is energy-saving and project includes six 20-ton biomass heat-conducting oil furnaces and two 10-ton biomass steam furnaces; the second phase includes
environmental friendly through photovoltaic development five 40-ton biomass heat-conducting oil furnaces. The comprehensive thermal efficiency of the two projects reaches over 88%.technological transformation innovation and upgrading.The total installed capacity of the distributed photovoltaic power
generation project of Hengke New Material with grid-connected
power generation is 64 MW generating 74.7985 million kWh
annually saving 22300 tons of standard coal and reducing Firstly it has advanced boiler Secondly the heat-conducting Thirdly the boiler has high energy
81729.78 tons of carbon dioxide emissions. system technologies us ing o i l f u r n a c e u s e s b i o m a s s utilization rate. With optimized
hydrogenated terphenyl (T66) as (straw) as fuel which effectively design the boiler flue gas system
Kanghui New Material is implementing a distributed photovoltaic the heat transfer oil which has reduces sulfur and nitrogen is equipped with a waste heat
power generation project with a designed installed capacity of 38 strong thermal stability oxidation oxide pollution. The synthetic boiler to strengthen waste heat
MW and an installed capacity of 30.4 MW in the first and second resistance and good pumpability. biomass is made of recycled utilization. The boiler has low
phases. Photovoltaic power generation project It can be used for a long time as waste wood and straw which overall heat loss and highly
long as it is within the specified are all renewables significantly efficient energy utilization with
temperature range. It can be improving the ef f ic ienc y of the overall thermal efficiency
Case Hengli Petrochemical Chemical - solar street lamp application regenerated and is not corrosive resource utilization. exceeding 88%.to equipment which improves
Hengli Petrochemical Chemical has installed and applied 130 LED equipment 's service life.solar street lamps and 11 mobile solar traffic lights in its plants
making full use of solar energy to provide sufficient energy for the
Strengths of the biomass boiler
lighting system and achieving energy conservation and resource
recycling.Case Deli Chemical Fiber - purchase of high-quality biomass granular fuel
2 After transforming to biomass-fueled boilers Deli Chemical Fiber still had high emissions of NOx which were between 130 and Biomass energy can be regenerated by photosynthesis of plants. It is
a renewable besides wind energy and solar energy. Biomass has low 180 mg/Nm3 according to data. In order to achieve emission reduction as soon as possible the Company carried out comparative
sulfur and nitrogen content and generates less SOX and NOX during experiments on fuel and found that the main reason for the high NOx emissions was that the biomass granule fuel purchased locally
combustion. When biomass is used as a fuel the carbon dioxide was impure. Therefore the Company sent staff to Jiangxi Guangxi and Guizhou for market research. After examining the biomass
required during its growth is equivalent to the amount of carbon granules sent back the Company finally decided to purchase log biomass produced in Jiangxi and Guizhou to replace the fuel it was
dioxide it emits so it has near zero net emission of carbon dioxide currently using. The Company overcame multiple difficulties in procurement costs transportation costs and prolonged inventory
which effectively reduces the greenhouse effect. LED solar street lamps cycle to use the high-quality biomass granule fuel for production which effectively reduced atmospheric emissions of Nox to
110~150mg/Nm3.85 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 86
Grreeeenn DDeessiiggnn Case Hengli Chemical Fiber - green design products
Hengli Chemical Fiber has designed products FDY DTY IPY based on the concept of process control and circular economy to reduce
the generation and discharge of waste. It also sets requirements for the reuse of useful substances in the "three wastes" and puts
Green Materials restrictions on the use of chemicals. In addition to mandatory standards it is stipulated that the extractable antimony contained
should not exceed 30 mg/kg. The water intake and energy use during main processes of water and energy consumption all meet
The company has established a global recycling standard (GRS)3 system formulated the first-level benchmark for clean production. The products are internationally advanced in terms of green production and are
an assessment system for the reduction and substitution of hazardous substances and listed by the General Office of Industry and Information Technology.as "green design products".chemicals and established a product R&D team to actively develop technical solutions
to reduce the consumption of hazardous substances in raw and auxiliary materials.The factory has formulated procurement standards and specified the requirements for
the use of hazardous substances recyclable materials and energy efficiency; supplier
evaluation procedures were implemented requiring suppliers to provide test reports
that reflect the quality requirements ingredients use of hazardous substances and
recyclability of the materials. The Company works to minimize the types of materials
used in product design to facilitate the recycling of waste products. It reduces the weight
of materials used and improved the utility rate of raw materials; it also works to use fewer FDY DTY IPY FDY DTY and IPY all obtained
types and less amount of consumables in the production process and increase the OEKO-TEX certification.proportion of recycled or renewable materials.Case Hengke New Material - hypersimulated Case Kanghui New Material - degradable5 film
differential environmentally friendly fiber project
Green Packaging
The Company 's hypersimulated differential environmentally In order to solve the increasingly serious problem of plastic pollution
The Company implements the concept of green packaging using recyclable friendly fiber project which has an annual output of 150000 Kanghui New Material has been actively promoting the development
packaging materials such as paper and wood pallets which are easy for recycling. tons and an investment of RMB 1.15 billion recycles resources of degradable BOPBAT film. Through biaxial stretching PBAT does
Such materials are non-toxic harmless to human body and friendly to the to significantly reduce urban solid waste and the comprehensive not only maintain degradability but also solves the problems of low
environment which can reduce white pollution from the source. At the same time energy consumption of products. The carbon emitted in the strength and opacity due to the film blowing process which makes
in order to ensure the effective protection of products under harsh transportation production of regenerated fiber4 is far lower than the carbon it hard to promote the use of conventional PBAT degradable film. At
conditions we optimize the thickness density and structure of the product packaging emitted in the production of original fibers. The regenerated present R&D and continuous biaxial tensile testing was completed
materials and reduced packaging materials and promoted packaging reduction on fiber can be used in high-end chemical fiber products achieving for degradable BOPBAT film in laboratories. It has been proven as a
the premise of safeguarding the quality of packaging and transportation. the circular economy model for industrial chain development. degradable substitute of less demanding packaging materials such
The project has improved the product differentiation and as tape and express packaging bags and can even replace highly
Case Hengli Petrochemical Chemical - application of promoted the Company to transform to greener manufacturing. demanding packaging materials for food and clothing after further
recyclable packaging development. Ultimately it can replace all packaging materials
commonly used at the time.Actively responding to national policies Hengli Petrochemical Chemical promotes the
GRS certificates of some subsidiaries
application of recyclable packaging. MLLDPE packaging bags used in PP production
is a new type of thermoplastic one major technological breakthrough for the global
polyolefin industry. Using MAO as a polymerization catalyst it has significantly different In 2022
performance from that of PE polymerized by traditional catalysts and has better
texture ductility transparency and toughness. It has high recyclable value and can the Company spent RMB
be reused/recycled by downstream producers according to their actual situation and
application scenarios. 1.333 billion
Green Products on packaging consumables. Differential environmentally friendly fiber
The Company invites external organizations to conduct life cycle assessment on 4Regenerated fiber refers to fiber made by melting or dissolving waste textiles
products and issues life cycle assessment reports on products ' environmental and other waste polymer materials or by re-polymerizing and re-spinning the
impact during raw material acquisition and production. Improvements are made recycled polymer materials that are cracked into small molecules. It is one of the three major categories of "green fiber".according to the Company 's green design improvement plan to make products that
5
are much more eco-friendly and green. Degradable materials can be completely decomposed by the surrounding
environment such as bacteria fungi algae and eventually converted into low-
molecular substances such as water that can be absorbed by the surrounding
3The GRS is an international voluntary full product standard that sets requirements for third-party environment. This effectively solves the threat of plastic pollution to the
certification of recycled content chain of custody social and environmental practices and chemical environment saves non-renewable energy reduces carbon emissions and
restrictions. The GRS is intended to increase the use of recycled materials in products and to reduce/ contributes to the sustainable recycling of resources.eliminate the harm caused by their production. Degradable film87 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 88
LLoow--ccaarrbboonn OOppeerraattiioonn Case Hengke New Material - tree planting actions Case Hengke New Material - garbage sorting
In March 2022 Hengke New Material organized a volunteer service Every day in the past year Hengke New Material volunteers would
with the United Front Work Department of Wujie Town Tongzhou pick up garbage around the Company. It was an initiative led by the
Optimizing Park Environment District on the Tree Planting Day which was themed "Joining Hands workshops where employees voluntarily brought their own tools to Create a Forest of Ethnic Unity". 56 pomegranate saplings were to pick up garbage from the parking lot outside the plants from
planted by our employees symbolizing the unity and common the roads on both sides of the living area and headquarters which
Hengli Petrochemical adheres to environmental protection pollution reduction and energy conservation in the process of construction development of 56 Chinese ethnic groups. This activity deepened lead to the river embankment near the living area. Volunteers then
project design and construction management. On the premise of quality assurance Hengli Petrochemical prioritizes environmental the friendship among employees in various departments and sorted the garbage they picked up and handed over the recyclable
protection making coordinated efforts to maximize the comprehensive benefits of environmental protection business profits and encouraged them to plant trees and protect forests. to the Company's waste recycling office for unified disposal and
social interest through a green construction model. The plants have large green area and are capable of green manufacturing energy
treated the non-recyclable as waste.conservation and consumption reduction Besides the Company constantly improves its plants ' compliance with construction
requirements and standards selecting materials based on concerns of safety environmental protection and energy saving.Indicator Dalian Yingkou Suzhou Nantong Suqian Industrial Park Industrial Park Industrial Park Industrial Park Industrial Park
Green area (10000
179.32445909.5
square meters)
Proportion of green area
16.725352025
in industrial parks (%)
Tree planting activity Volunteers picking up garbage around the Company
Green parks
Green and Eco-Friendly Concepts
Hengli Petrochemical has stepped up efforts to build green offices improving its basic
capabilities of environmental protection management and launching awareness campaigns
on environmental protection. By actively promoting eco-friendly practices in office we
encourage our employees to become advocates of green working and green living.Release of the environmental policy
Measures for pocket book
Posting slogans on green office Advocating low-
saving water and carbon transport
electricity to raise and encouraging
employees ' awareness Buying low energy employees to
of energy and water consumption equipment take stairs;
conservation in daily life; if possible;
Carrying out basic maintenance
Setting air conditioning temperature at for important energy-consuming
21 ℃ -25 ℃ in strict accordance with air equipment regularly to ensure its
conditioning temperature standards; Using low energy consumption equipmentbest performance.Giving Back
to the Society to Fulfill Public
Responsibility
Hengli Petrochemical believes that public welfare is not only an
unshirkable responsibility of a company; it is also a necessity for
achieving long-term sustainability. We are committed to promoting
harmony with local communities. We have carried out various
types of activities so that we grow together with the surrounding
communities and create benefits for all.91 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 92
BBuuiillddiinngg aa Haarrmoonniioouuss CCoommuunniittyy Case Supplying power for the people in Nantong
Volunteers from Hengke New Material Electrical Instrument Department a subsidiary of Hengli Petrochemical are responsible for
the maintenance of public power facilities in Kaisha Village Nantong and the inspection and maintenance of surrounding municipal
Dedicated to the Party and the people. Hengli Petrochemical is a private enterprise that actively responds to national strategies street lamps. The special geology of the island makes it prone
and governments at all levels to develop community infrastructure. With our engineering resources and industrial parks located all to road surface subsidence which often leads to power line
across China we step up efforts to support the development of community infrastructure and stand ready to facilitate and care for damage and short circuit. In this case the Company would
our surrounding communities across the country building a beautiful and harmonious home with the local residents. arrange mechanical equipment such as cranes and excavators
We have issued the Statement of Community Relations System to ensure timely communication with governments and the public; and send volunteers from its Electrical Instruments Department
we adhere to the principle of friendly consultation in discussing and solving problems with local communities; we undertake for timely repair to ensure safe electricity use and commuting
to respect and protect the local ethnic culture and respects the rights and interests of local people during our production and for residents. Every year during the rainy season staff of the
operation; we are committed to promoting self development of our local employees services and suppliers through professional Company would cooperate with relevant departments to
training and human resource development. we actively drive the development of community infrastructure and upstream and inspect the fire pumping station and ensure the safe operation
downstream industries in the process of production and operation and give priority to important community affairs such as of power facilities. Power lines being repaired
economic development employment and resident infrastructure.Case Special campaign on addressing safety Case
issues of bottled gas in Suzhou Community health screening in Suzhou
Case Gathering resources in Nantong to promote "Village-enterprise Joint Construction"
In order to further eliminate the hidden dangers of bottled The Company arranged about 7700 volunteers to take part in
gas prevent gas-related accidents and effectively protect health screening activities organized by communities and streets.After establishing the Nantong Industrial Park in Kaisha Island the safety of people's lives and property in 2022 a special Groups of volunteers went door to door in each community to
Wujie Town Tongzhou District Hengli Petrochemical has campaign on addressing safety issues of bottled gas was make sure that the services covered every resident. They also
never forgotten to fulfill its social responsibility contributing launched in key areas such as residential rental houses and offered support for the screening activities joining forces for
to the overall development of Kaisha Island. In response to company accommodation under the deployment of Wujiang prevention and control. In addition Hengli volunteers stayed
the campaign launched by provincial and municipal Party District Suzhou. at highway checkpoints for more than a month to help relevant
committees to "bring enterprises and villages together for
rural revitalization" the Party Committee of Hengli (Nantong) During this campaign Hengli Petrochemical fully fulfilled its
authorities ensure health and safety for all.Industrial Park and the General Party Branch of Kaisha social responsibility. In an active response to the government
Village pair up to set an example for "village-enterprise joint we conducted a rigorous internal inspection across our
construction": company and sent teams of volunteers to various villages
Providing skills training for the villagers of Kaisha Island towns and streets to assist government staff in investigating
the use of bottled gas raising awareness of safe gas use and
urging for correction of improper use of bottled gas.We provide career support We work together We grow together
for villagers with villagers with villagers
On the one hand we turn to hire The General Party Branch of Hengli takes the initiative to
more local people in Kaishan Kaisha Village regularly organizes solve the problem of idle assets
Village creating over 400 jobs for Party members and villager for Kaisha Village increasing the Gas safety volunteer actions Youth leader volunteers supporting Yongping Village
the local residents (accounting representatives to visit Hengli village 's collective income by
for 20% of the total number of Industrial Park to learn about over RMB 0.2 million every year.villagers). On the other hand we the Company 's production and The village Party branch in turn Case Supplying heat for Changxing Island
provide job skills training and operation safe production and offers support for the Company
entrepreneurship counseling to environmental protection. A in key work of land acquisition In September 2021 in order to solve heating difficulties in the central industrial zone of Changxing Island Hengli Group as the
cultivate practical talents and group of Hengli Party members and health screening promoting controlling shareholder of Hengli Petrochemical invested RMB 50 million on a special heating project. The project provides heating
establish a youth talent pool. volunteer to ensure the safety synergies between the village for the municipal buildings of Changxing Island. Two heat exchange stations have been built i.e. the heat exchange station for the
of villagers on the island by and the Company to lay a crude oil tank area and the municipal heat exchange station as well as pipelines along the way.patrolling organizing fire fighting solid foundation for common
actions and clearing roadblocks. development. In November 2021 our heating project successfully transported high-temperature water and heat to warm up residents' homes over
long distance. In 2022 Hengli Group invested RMB 5 million on another automatic control system which controls the temperature of
each heat exchange station more accurately and provides more comfortable temperature for the residents of Changxing Island.93 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 94
SSuuppppoorrttiinngg HHeeaalltthhccaarree aanndd EEdduuccaattiioonn Case Caring about healthcare and education to address the concerns of the people and ensure people's access to medical services
Hengli Group the controlling shareholder of Hengli Petrochemical is also concerned about the
healthcare and education and make donations for infrastructure building.Healthcare and education are the two pillars of social development and the rigid needs of communities. Dedicated to creating In February 2022 Hengli Group donated RMB 10 million to
value Hengli Petrochemical takes up its social responsibility and participates in the construction of community hospitals and Suzhou Charity Foundation which was used in the serious
schools bringing more convenience and benefits to community residents. disease treatment project for low-income people heart-
warming project in Suzhou and public welfare project in
Case Making continuous donations to help build a beautiful home Wujiang District etc.In March 2022 Jiangsu Hengli Charity Foundation donated
RMB 0.5 million to Shengchuan Yixue Education Fund in
Hengli Petrochemical is committed to giving back to society. Specifically we continuously donate funds and materials and give the society Shengze Town Wujiang District for school assistance and
and people the help and support within our capacity to promote social progress and development for a better future. In 2022 Hengli RMB 10 million to the First Affiliated Hospital Sun Yat-sen
Petrochemical made donations in the amount of RMB 0.939 million in the aggregate. University.In May 2022 Hengli Group as a private enterprise threw
itself into the breach and transported materials to Shanghai
in the first half of the year helping address the concerns of
Shanghai people and ensure Shanghai people's access to Hengli Group voluntarily organizes the transportation of
Kanghui New Material donated Hengli Petrochemical Refining Hengli Futures donated RMB 0.424 medical services which was praised in the article released by materials to support Shanghai
RMB 0.2 mil l ion to Yingkou donated RMB 0.1 mill ion to million to the rural revitalization Shanghai Channel the client side of the People's Daily.City Bayuquan District Charity Liaoning Petrochemical College and poverty alleviation project
Federation and RMB 0.2 million to contributing to its school building. and RMB 15000 to the elementary
Gaizhou City contributing to the schools in Dalian in response to In June 2022 to implement the spirit of the 3rd Working
medial and health care. the "new semester new schoolbag Symposium of the Central Committee on Xinjiang the front
and warm food" program put command office of Jiangsu People's Government adopted
fo r wa rd b y D a l i a n Fu t u re s the "group-type" aid model to build the "Kechu-Jiangsu
Association. Experimental School" while the staff of Hengli Group were
responsible for arranging delivery of new school uniforms
to Xinjiang students by truck transportation across nearly
5000 kilometers and continuously supported this school
with human material and financial resources.Hengli Group donates new school uniforms to Xinjiang school
In August 2022 Wujie School of Tongzhou District
Nantong started construction and both Wujie Education
Development Fund and Excellent Talent Growth Fund
were established. Liu Dunlei the general manager of
Hengke New Material represented Hengli Group to donate
RMB 15 million to the Education Development Fund.Ceremony of Donation to the Education Development Fund
At the 2022 Annual Entrepreneur Meeting of Changxing
Island Economic and Technological Development Zone
held in January 2023 Hengli Group announced a donation
of RMB 100 million to the Changxing Island Economic and
Technological Development Zone Management Committee
for the construction of hospitals and schools in the
Changxing Island area helping improve the medical and
educational level of its "second hometown". The Changxing
Island Central Hospital will restart construction in March
2023 after its construction stopped in August 2014.
Ceremony of Hengli Group's donation to Changxing Island95 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 96
VVoolluunntteeeerr AAccttiivviittiieess
Volunteer service is selfless and it is
also beneficial for one 's own growth. Case Hosting volunteer activities to ensure park operations
Hengli Petrochemical has hosted
and participated in various voluntary In several rounds of all-staff health screening the selfless and devoted volunteers of the
activities such as nursing home visits Company played an irreplaceable role in taking temperature tests checking the health
and blood donation to raise employees and travel codes entering information and disinfecting to help medical staff with
' awareness of social responsibility and regional health examination. Volunteers assisted the staff in registration and disinfection
team spirit. and gave out food to truck drivers at the gates quarantine points of living areas and
temporary parking space for trucks in the parks devoting themselves to ensuring normal
operations in the parks and protecting the health and safety of employees.Case Delivering warmth to the elderly
Volunteers helping people in parks
During the Spring Festival the Company sent employee
Case Sparks of light can be gathered together to form a torch representatives to visit the Changxing Island Nursery Home. During
the visit employees offered to carry materials and send gifts to the
elderly. They talked with the elderly to keep them company during
Hengli Nantong Industrial Park has organized various volunteer activities
According to statistics a total of the Spring Festival and offered to clean up for them a deed that to contribute to the communities and cultivate employees ' sense of social
318 was heart-warming especially in the cold winter.responsibility.employees donated blood. On March 4 2022 the traditional Dragon-Head-Raising Festival in China volunteers
from the DTY texturing department of Hengli Nantong Industrial Park launched an New Year visit to Dalian Changxing Island Industrial Park Nursing Home
activity to give out free haircuts for employees. To provide a better hairdressing
The total blood donation was nearly
experience the DTY texturing department prepared hairdressing tools for volunteers
100000 to use. Nearly 100 employees received the services with satisfaction.mL. In November 2022 Hengli Nantong Industrial Park organized a four-day blood Case Volunteer organizations and charity funds of each park
donation campaign. The campaign was well received as employees of various
The company also gave departments actively took part in this life-saving deed.rewards for blood donors: a ng Industria dusl ou In trial g Isl
and
o Indu
cash subsidy of RMB t P han a uz
Par gxi
n
stri
100 and food subsidy
In 2012 Jiangsu Hengli Charity
of RMB The total number of volunteers Foundation Hengli Volunteer By the end of 2022 Hengli Youth
is about 1000 providing about
10 Association and Youth Volunteer
Volunteer Association has registered
800000 hours of volunteer work; Courtesy Service Team were over 200 members..
established;
An employee donating blood
N
S
Chan
rk
al P
a
k
rk97 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 98
IInnddeexx ooff tthhee IInnddiiccaattoorrss Topic Indicator No. Relevant SectionEnvironmental Risk Management (E)
E1.1 Environmental Management
Chinese Academy of Social Sciences CASS-ESG 5.0 Standard Index E1.2 Not disclosed
E1.3 Environmental Management
E1.4 Environmental Management
Topic Indicator No. Relevant Section Environmental Management E1.5 Environmental Management
Preface (P) E1.6 Environmental Management
E1.7 Environmental Management
P1.1 About this Report
E1.8 Green Design
Reporting Specifications P1.2 About this Report
E1.9 Environmental Management
P1.3 About this Report
E2.1 Resource Saving
P2.1 Message from the Chairman
Executive Messages E2.2 Resource Saving
P2.2 Message from the Chairman
E2.3 Not disclosed
Responsibility Focus P3.1 Milestones in 2022
E2.4 Resource Saving
P4.1 Company Profile
E2.5 Resource Saving
P4.2 Sustainable Management
Company Profile E2.6 Green Design
P4.3 Business Layout
E2.7 Green Design
P4.4 N/A
Resource Utilization E2.8 Not disclosed
Governance Responsibility (G)
E2.9 Resource Saving
G1.1 Compliant Operation
E2.10 Resource Saving
G1.2 Compliant Operation
E2.11 Not disclosed
G1.3 Internal Control
E2.12 Resource Saving
G1.4 Not disclosed
E2.13 Resource Saving
G1.5 Anti-corruption and Integrity Upholding
E2.14 Low-carbon Operation
Corporate Governance G1.6 Anti-corruption and Integrity Upholding
E2.15 Low-carbon Operation
G1.7 Anti-corruption and Integrity Upholding
E3.1 Treatment of Three Wastes
G1.8 Not disclosed
E3.2 Treatment of Three Wastes
G1.9 Not disclosed
E3.3 Treatment of Three Wastes
G1.10 Investor Relations Management
E3.4 Treatment of Three Wastes
G1.11 Not disclosed
E3.5 Treatment of Three Wastes
G2.1 Not disclosed Emission
E3.6 Treatment of Three Wastes
G2.2 Not disclosed
E3.7 Treatment of Three Wastes
ESG governance by the Board of Directors G2.3 Not disclosed
E3.8 Treatment of Three Wastes
G2.4 Not disclosed
E3.9 Treatment of Three Wastes
G2.5 Not disclosed
E3.10 Not disclosed
G3.1 Not disclosed
E4.1 Not disclosed
G3.2 Sustainable Management
Safeguarding Ecological Security E4.2 Not disclosed
G3.3 Not disclosed
E4.3 Low-carbon Operation
G3.4 Not disclosed
E5.1 Not disclosed
G3.5 Sustainable Management
E5.2 Not disclosed
ESG Management G3.6 Sustainable Management
E5.3 Environmental Management
G3.7 About this Report
Addressing Climate Change E5.4 Not disclosed
G3.8 Not disclosed
E5.5 Not disclosed
G3.9 Not disclosed
E5.6 Not disclosed
G3.10 Not disclosed
E5.7 Not disclosed
G3.11 Achievements and Rewards99 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 100
Topic Indicator No. Relevant Section Topic Indicator No. Relevant Section
Social Risk Management (S) S5.2 Not disclosed
S1.1 Employee Growth S5.3 Not disclosed
S1.2 Employee Growth Responsible Supply Chain S5.4 Not disclosed
S1.3 Employee Growth Management S5.5 Not disclosed
S1.4 Employee Growth S5.6 Not disclosed
S1.5 Not disclosed S5.7 Not disclosed
Employment S1.6 Employee Growth Value Creation (V)
S1.7 Employee Growth V1.1 Sustainable Management
S1.8 Employee Growth V1.2 Sustainable Management
S1.9 Not disclosed National Value V1.3 Building a Harmonious Community
S1.10 Employee Growth V1.4 Building a Harmonious Community
S1.11 Employee Growth V2.1 Scientific and Technological Innovation
S2.1 Employee Growth
V2.2 Scientific and Technological Innovation
S2.2 Employee Growth
Development and Training V2.3 Scientific and Technological Innovation
S2.3 Employee Growth
V2.4 Scientific and Technological Innovation
S2.4 Employee Growth Industrial Value
V2.5 Scientific and Technological Innovation
S3.1 Work Safety
V2.6 Supply Chain Management
S3.2 Work Safety
V2.7 Industry Cooperation
S3.3 Not disclosed
V2.8 Industry Cooperation
S3.4 Work Safety
V3.1 Building a Harmonious Community
S3.5 Work Safety
V3.2 Building a Harmonious Community
S3.6 Work Safety
Occupational Health and Work Safety V3.3 Building a Harmonious Community
S3.7 Work Safety
S3.8 Work Safety People's Well-being Value V3.4 Volunteer Activities
S3.9 Work Safety V3.5 Not disclosed
S3.10 Not disclosed V3.6 Supporting Medical Education
S3.11 Not disclosed V3.7 Volunteer Activities
S3.12 Work Safety V4.1 Not disclosed
S4.1 Quality Assurance V4.2 Not disclosed
S4.2 Not disclosed Environmental Value V4.3 Resource Saving
S4.3 Not disclosed V4.4 Low-carbon Operation
S4.4 Customer Service V4.5 Not disclosed
Customer Responsibility S4.5 Customer Service Postscript (A)
S4.6 Information Security 　 A1 Not disclosed
S4.7 Customer Service 　 A2 Sustainable Management
S4.8 Not disclosed 　 A3 N/A
S4.9 Not disclosed 　 A4 Index of indicators
Responsible Supply Chain
S5.1 Supply Chain Management 　 A5 Reader feedback form
Management101 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 102
Global Reporting Initiative GRI Standard Index
GRI Standard Relevant Section
Statement of use Hengli Petrochemical has reported in accordance with the GRI Standards for G202-1 Not disclosedGRI 202: Market Presence
the period from January 1 2022 to December 31 2022. G202-2 Not disclosed
G203-1 Building a Harmonious Community
GRI 1 used GRI 1: Foundation 2021 GRI 203: Indirect Economic Impacts G203-2 Building a Harmonious Community
GRI Standard Relevant Section GRI 204: Procurement Practices G204-1 Not disclosed
G2-1 Company Profile G205-1 Not disclosed
G2-2 About this Report GRI 205: Anti-corruption G205-2 Anti-corruption and Integrity Upholding
G2-3 About this Report G205-3 Not disclosed
G2-4 N/A GRI 206: Anti-competitive Behavior G206-1 Not disclosed
G2-5 N/A G207-1 See the Annual Report
G2-6 Business Layout G207-2 See the Annual Report
GRI 207: Tax
G2-7 Employee Growth G207-3 See the Annual Report
G2-8 N/A G207-4 See the Annual Report
G2-9 Compliant Operation G301-1 Not disclosed
G2-10 Not disclosed GRI 301: Materials G301-2 Not disclosed
G2-11 See the Annual Report G301-3 Green Design
G2-12 Compliant Operation G302-1 Resource Saving
G2-13 Compliant Operation G302-2 Not disclosed
G2-14 Not disclosed GRI 302: Energy G302-3 Not disclosed
G2-15 N/A G302-4 Resource Saving
GRI 2: General Disclosures
G2-16 Sustainable Management G302-5 Resource Saving
G2-17 See the Annual Report G303-1 Resource Saving
G2-18 Not disclosed G303-2 Treatment of Three Wastes
G2-19 Employee Growth GRI 303: Water and Effluents G303-3 Resource Saving
G2-20 Employee Growth G303-4 Treatment of Three Wastes
G2-21 Not disclosed G303-5 Resource Saving
G2-22 Not disclosed G304-1 N/A
G2-23 Sustainable Management G304-2 N/A
GRI 304: Biodiversity
G2-24 Sustainable Management G304-3 N/A
G2-25 Customer Service G304-4 N/A
G2-26 Employee Growth G305-1 Not disclosed
G2-27 Internal Control G305-2 Not disclosed
G2-28 Industry Cooperation G305-3 Not disclosed
G2-29 Sustainable Management GRI 305: Emissions G305-4 Not disclosed
G2-30 Employee Growth G305-5 Not disclosed
G3-1 Not disclosed G305-6 Not disclosed
GRI 3: Material Topics G3-2 Sustainable Management G305-7 Treatment of Three Wastes
G3-3 Sustainable Management G306-1 Not disclosed
G201-1 Sustainable Management G306-2 Treatment of Three Wastes
G201-2 Not disclosed GRI 306: Waste G306-3 Treatment of Three Wastes
GRI 201: Economic Performance
G201-3 See the Annual Report G306-4 Treatment of Three Wastes
G201-4 See the Annual Report G306-5 Not disclosed103 Hengli Petrochemical Co. Ltd. 2022 Social Responsibility Report 104
GRI Standard Relevant Section Reader's Feedback Form
GRI 308: Supplier Environmental G308-1 Not disclosed Reader's Feedback For
Assessment G308-2 N/A
G401-1 Not disclosed
GRI 401: Employment G401-2 Employee Growth Dear reader:
Thank you for sparing time to read the 2022 CSR Report of Hengli Petrochemical Co. Ltd. Your comments and
G401-3 Not disclosed suggestions are sincerely welcomed as we work to provide you and other stakeholders with more valuable
G R I 4 0 2 : L a b o r / M a n a g e m e n t
G402-1 N/A information and better fulfill our corporate social responsibility.Relations
G403-1 Work Safety
G403-2 Work Safety
G403-3 Work Safety Multiple-choice questions (please check a box)
G403-4 Not disclosed 1. Your overall evaluation of this report is?
GRI 403: Occupational Health and G403-5 Work Safety □ Very good □ Good □ Average □ Bad □ Very bad
Safety G403-6 Work Safety
G403-7 Not disclosed 2. The response to and disclosure of issues of stakeholder concern is?
G403-8 Not disclosed □ Very good □ Good □ Average □ Bad □ Very bad
G403-9 Work Safety 3. How do you think Hengli Petrochemical has done in terms of economic responsibility?
G403-10 Not disclosed □ Very good □ Good □ Average □ Bad □ Very bad
G404-1 Employee Growth
GRI 404: Training and Education G404-2 Employee Growth 4. How do you think Hengli Petrochemical has done in terms of environmental responsibility?
G404-3 Not disclosed □ Very good □ Good □ Average □ Bad □ Very bad
GRI 405: Diversity and Equal G405-1 Sustainable Management 5. How do you think Hengli Petrochemical has done in terms of safety management?
Opportunity G405-2 Not disclosed □ Very good □ Good □ Average □ Bad □ Very bad
GRI 406: Non-discrimination G406-1 Employee Growth
GRI 407: Freedom of Association and 6. How do you think Hengli Petrochemical has done in terms of employee responsibility?
G407-1 Employee Growth
Collective Bargaining □ Very good □ Good □ Average □ Bad □ Very bad
GRI 408: Child Labor G408-1 Employee Growth
7. How do you think Hengli Petrochemical has done in terms of community responsibility?
GRI 409: Forced or Compulsory
G409-1 Not disclosed □ Very good □ Good □ Average □ Bad □ Very bad
Labor
GRI 410: Security Practices G410-1 Not disclosed 8. Are the information indicators and data disclosed in the report clear accurate and complete?
GRI 411: Rights of Indigenous
G411-1 Building a Harmonious Community □ Very good □ Good □ Average □ Bad □ Very bad
Peoples
G413-1 Building a Harmonious Community 9. Do you think this report is structured and presented in a way that is easy to read?
GRI 413: Local Communities
G413-2 N/A □ Yes □ No
G414-1 Not disclosed
GRI 414: Supplier Social Assessment
G414-2 Not disclosed
Open-ended question
GRI 415: Public Policy G415-1 N/A
G416-1 Not disclosed Any comments and suggestions on Hengli Petrochemical's performance of social
GRI 416: Customer Health and Safety
G416-2 N/A responsibility and on this report?
G417-1 Not disclosed
GRI 417: Marketing and Labeling G417-2 N/A
G417-3 N/A
GRI 418: Customer Privacy G418-1 N/A