In 2022, the chemicals and materials business unit overcame difficulties and challenges such as rising raw material costs, continuous impact of the COVID-19, and supply-demand imbalance, focusing on optimization, structural adjustment, market expansion, and improving quality and efficiency.

Significant results in optimizing production and operation

Optimization of raw material structure.   We fully coordinated refining and chemical business to address challenges for raw material supply and maximized the overall value of refining and chemical business. We adjusted and optimized the processing plans for heavy cracking materials in a timely manner based on the demand of the market for refined oil products.

Monitoring the market and adjusting product structure.   We strengthened connection between production and sales, and optimized and adjusted production and sales plans. In 2022, the number of production and sales plan adjustment orders increased by 86.4%. We made efforts to increase production and efficiency of profitable products, fully utilized the load of highly profitable units, and strived to increase the production of profitable rubber products.

Budgets in place and strict cost control.   We actively promoted strategic and intensive financial budget control, and comprehensively carried out the formulation of medium and long-term financial plans. We continued to focus on the 3-month rolling budgets, strictly controlled costs for non-production and outsourcing fees of key businesses, and actively promoted the implementation of national fiscal and tax preferential policies.

High-quality development of new materials

Synthetic resin.  We strengthened product development, focused on improving market competitiveness and continuously adjusted and optimized product structure in combination with specific unit features, market demand and existing challenges.

Synthetic rubber.  We promoted product mix optimization and adjustment, closely monitored market demand, leveraged our own technological advantages, and developed new products that met customers’ needs.

Synthetic fiber.  We developed new products based on market demand, lead the high-end product market, and formed new profit growth points. Production process of three high-performance fiber was fine-tuned, and unit operation stability and product performance further improved.

Fine chemicals.  We enhanced product development in key application fields, accelerated the development of highend incremental business with incremental projects in smooth operation.

Progress Made in Coal Chemical Operation and Construction

Good Momentum of Profitability for Projects under Operation.  Sinopec Great Wall Energy and Chemical (Ningxia) Co., Ltd. focused on upgrading the productivity of coal mines, calcium carbide furnace and BDO unit. The output of five main profitable products increased by 31.3%, and the total cost of chemical products per tonne decreased by 1064 yuan. The business volume and sales revenue both went up; Zhongtian Hechuang Company achieved growth in production, revenue, and profitability for coal and chemical products. Total cost of polyolefin products per tonne reduced by 389 yuan, and the proportion of new polyolefin products and special materials was up by 6.8%. Sales revenue and total profit both recorded new historical highs; Zhongan United Coal Chemical Co., Ltd. successfully completed its first overhaul and focused on exploring markets in neighboring regions. The proportion of new polyolefin products and special materials increased by 6%. In 2022, coal production hit a record high, with raw coal and commercial coal exceeding the planned production by 10% and 8%, respectively. The production and total operating volume of major chemical products both surpassed the annual plan by 4%, and the consolidated sales revenue increased by 320 million yuan.

Active Promotion for Projects at the Planning Stage.  Efforts were made in coordinating and promoting the planned layout of coal chemical industry under the 14th Five-Year Plan (2021-2025). Sinopec Great Wall Energy and Chemical (Guizhou) Co., Ltd. is progressing with the land preparation, general design optimization and research on product processing and application simultaneously for the PGA Project as scheduled; Dalu Coal to Olefin Project has reached common ground with the local government on allocating coal resources, accelerating the start of construction, and launching the decision-making process based the feasibility study; The Zhongtian Hechuang Green and Carbon Reduction Upgrade Project (Coal Chemical Coupled with Green Power and Green Hydrogen) has completed the feasibility study, started the decision-making process, and pressed forward with the feasibility study revision for phase III; Xinjiang East Junggar Project has launched the research on the adjustment and optimization of the construction plan.