The 20th CPC National Congress provides the way forward and establishes the fundamental rules for the high-quality development of enterprises in this new era and new journey. Guided by “Xi Jinping Thoughts on Socialism with Chinese Characteristics for a New Era”, Sinochem International has embarked on the diligent learning and comprehensive implementation of the spirit of the 20th CPC National Congress, and practically implemented the 20th CPC National Congress key strategies in its various management and operations related tasks, unswervingly keep forging ahead on the road to becoming the “leading enterprise of innovative new chemical materials”.
Forging ahead with Enterprise and Fortitude
A new era brings a new journey. Sinochem International has an in-depth grasp of the intrinsic requirements of Chinese-style modernization, being resolute in implementing the various strategic decisions made during the 20th CPC National Congress. As the company accelerates its efforts to build “a leading enterprise specializing in innovative new chemical materials”, it also keeps improving environmental, society and governance practices while empowering the company’s high-quality development of production and operations. In the process of building a new development pattern and establishing Chinese-style modernization in China, we hope to demonstrate the new way of how Central Enterprises do things.
Guidelines of the report to the 20th CPC National Congress: Implement a comprehensive conservation strategy, conserve resources of all types and use them efficiently, and move faster to put in place a system for recycling waste and used materials. Fiscal, taxation, financial, investment, and pricing policies and systems of standards will be improved to support green development. Boost green and low-carbon industries and accelerate the R&D, promotion, and application of advanced energy-saving and carbon emission reduction technologies.
Action Recap: Sinochem International accelerated the pace of green transition and the transformation of old and new growth drivers, and focused on building the core structure of our strategic transformation plans--Sinochem Lianyungang Circular Economy Industrial Park, leveraging the characteristics and advantages of circular development and intensive development to serve as a green transition model for China’s chemical industry. The park also performs new breakthroughs in extending the circular economy product chain and realizing the utilization, reduction, and reuse of resources. In 2022, we successfully issued the first sustainability-linked corporate bond of the Shanghai Stock Exchange amounting to RMB 3.5 billion, using green financing to assist in our green transition efforts.
Future Outlook: Perform further explorations in the area of building a green manufacturing system throughout the entire life cycle, continue to promote the construction of an integrated circular economy industrial park, focus on the development of clean production and green technology applications, promote the implementation of energy-saving and low-carbon projects, improve the green financing management system, and transform green and low-carbon features into practical operating advantages to boost the company’s value.
2.Implementing “Dual Carbon” Measures
Guidelines of the report to the 20th CPC National Congress: Work actively and prudently toward the goal of carbon neutrality. Promote clean, low-carbon and high-efficiency energy use, and push forward the clean and low-carbon transition in industry, construction, transportation and other sectors.
Action Recap: Sinochem International promoted the implementation of the “dual carbon” strategy with practical actions, prepared the Carbon Peaking and Carbon Neutrality Action Plan, optimized carbon management working mechanisms and action paths, and comprehensively implemented low-carbon transition measures. In recent years, our traditional businesses have seen the implementation of measures such as “Relocating from cities to suburban industrial park” and the promotion of emission reduction technologies and equipment transformation to enable the in-depth expansion of carbon reduction potential. Meanwhile, for our incremental businesses, we have strengthened low-carbon technology and process R&D while developing new energy businesses such as lithium battery materials, thereby comprehensively promoting energy transformation.
Future Outlook: Continue to thoroughly implement the national “dual carbon” goals, promote a clean and lowcarbon energy structure, aggressively promote clean technology and energy-saving equipment, and actively deploy new green industries. By 2025, we hope to see a 15% decrease in comprehensive energy consumption per 10,000 yuan output value and a 18% reduction in carbon dioxide emissions per 10,000 yuan output value compared to the end of the 13th Five-Year Plan.
3.Developing Modernized Industries Deepening Reforms
Guidelines of the report to the 20th CPC National Congress: Support enterprises that use special and sophisticated technologies to produce novel and unique products, move the manufacturing sector toward higher-end, smarter, and greener production. Promote the integrated and clustered development of strategic emerging industries and cultivate new growth engines such as new-generation information technology, artificial intelligence, biotechnology, new energy, new materials, high-end equipment, and green industry.
Action Recap: Sinochem International focused on the core business of new chemical materials, built strategic projects and new material industry clusters with core competitive advantages, and created a number of national, provincial and municipal-level “specialized, sophisticated, unique and novel” enterprises. Fruitful results have been achieved in terms of industrial chains for epoxy resin, additives, special fibers, and engineering plastics. Leveraged lithium battery materials, lithium battery manufacturing, battery recycling and other fields to extend the upstream and downstream industrial chain. Promoted the creation of a new form of modernization and development of the new energy industry.
Future Outlook: Focus on the strategy to “create multiple modern industrial chains with comprehensive competitive advantages in terms of technology, cost, and scale”, build a “2+2+2” industrial chain structure and “1+N” industrial base structure. By 2025, we hope to form an industry layout with outstanding core industrial chains and market-leading core products.
4.Strengthening the Supply Chain
Guidelines of the report to the 20th CPC National Congress: Based on the principle of promoting high-quality development, keep striving to improve the resilience and security level of the industrial and supply chain.
Action Recap: Sinochem International created a batch of original and breakthrough technologies to ensure that the new chemical material industry chain is independent and controllable with a secure level of supply. Integrated sustainability concepts into procurement activities and day-to-day management while accelerating the establishment of a sustainable supply chain management system in terms of supplier management, supplier sustainability improvement, and reduction of supply chain carbon emissions. We also jointly launched the “3S sustainability supply-chain” initiative to ensure long-term stability, security, mutual trust, and win-win cooperation with suppliers and partners in both industrial downstream and upstream sectors.
Future Outlook: Through “shoring up weaknesses and plugging gaps”, we aim to safeguard the security and stability of the industrial chain and supply chain, drive the creation of an advanced “industrial chain ecosystem” in China’s new chemical material industry, and hone the key capability of “the leader of industrial chain”. Continue to create a sustainable supply chain development model to serve as a pioneer which will drive the sustainable development of upstream and downstream partners.
5.Deepening Reforms and Improving Quality and Efficiency
Guidelines of the report to the 20th CPC National Congress: Deepen reform of state-owned capital and state-owned enterprises (SOEs), accelerate efforts to improve the layout of the state-owned sector and adjust its structure, work to see state-owned capital and enterprises get stronger, do better, and grow bigger, and enhance the core competitiveness of SOEs.
Action Recap: Sinochem International successfully completed the “Three-Year Action Plan for State-owned Enterprise Reform”, deepened the construction of the governance system through reform, and effectively improved the level of corporate governance. Improved market-oriented operating mechanisms to stimulate the company’s operating vitality; focused on core businesses, promoted the implementation of major strategic projects of the core industry chains, and promoted concentration of the resources on main businesses. Several key tasks were significantly successful such as special quality and efficiency improvement actions and the RMB 5 billion private placement.
Future Outlook: Based on the perspective of the CPC’s and nation’s development, we will understand and view the current tasks, risks and challenges pertaining to business development at a higher level, and employ systematic thinking patterns and overall planning measures to ensure the high-quality coordination of various tasks to “stabilize growth, prevent risks, and promote reform”. In turn, this would facilitate business integration, quality and efficiency improvement, and sustainable development.
Guidelines of the report to the 20th CPC National Congress: Promote closer enterprise-led collaboration between industries, universities, and research institutes, stay goaloriented, and promote the industrial application of scientific and technological advances. Reinforce the principal role of enterprises in innovation, and promote deeper integration of the innovation, industrial, capital, and talent chains.
Action Recap: Sinochem International upheld an innovation-driven strategy and continuously increased investments in technological innovation. From 2017 to 2022, a cumulative sum of almost RMB 5 billion has been invested into R&D efforts. Created an integrated technological innovation system covering “basic research, process development, engineering research, and product application research and development”, focused on the development of R&D platforms and the forming of scientific and technological talent teams, and accelerated the transformation of mature key technologies and existing basic research project achievements. In 2022, our new product sales volume reached RMB 9.01 billion with a year-on-year increase of 41%.
Future Outlook: Accelerate the pace of “shoring up the weaknesses” of new chemical materials, concentrate efforts to promote key core technology research, create a strong engine for technological innovation, bravely assume the mission of producing original technology, and keep promoting the in-depth integration of the innovation, industrial, capital and talent chains.