November 4, 2026

Shenghong Refining & Chemical (Lianyungang) Co., Ltd. has successfully passed a specialized customs audit, officially securing the operational qualification for a public bonded warehouse for liquid products. It has become the first crude oil bonded warehouse under the jurisdiction of Nanjing Customs to operate under an intelligent, ERP-integrated regulatory framework. Throughout the qualification application process, Lianyungang Customs worked in close coordination with Shenghong Refining & Chemical. To ensure precise alignment with digital customs regulatory standards and facilitate long-term, compliant operations, customs authorities—taking into account the specific, stable operating conditions of Shenghong’s crude oil storage tanks—employed a regulatory model based on "operational equivalence benchmarking and multi-dimensional data cross-verification." This approach, supported by digital control measures such as full-lifecycle data archiving, traceability, and the logging of all key operational steps, enabled the verification process to be completed with high efficiency and quality. Concurrently, Shenghong Refining & Chemical upgraded its bonded warehouse hardware, established necessary systems, and refined its management protocols, resulting in an integrated, intelligent bonded regulatory framework. The company’s ERP regulatory platform—linked directly to customs—is now operational, enabling 24-hour automated data transmission and full traceability for metrics such as real-time tank levels, inventory quantities, product inflow/outflow records, and equipment status. Internal control mechanisms—covering routine self-inspections, monthly inventory audits, and anomaly alerts—have been integrated into a closed-loop system, with ledger management and periodic reporting processes further streamlined. Through these digital and standardized operations, the company fully meets the requirements for dynamic customs supervision, setting a practical benchmark for intelligent bonded warehousing within the petrochemical industry. Following the acquisition of the bonded warehouse qualification and the establishment of the intelligent regulatory system, the company has been closely monitoring international crude oil market trends to capitalize on optimal procurement windows. The vessel "Global Challenge" has successfully arrived at the port, and its cargo has been moved into the bonded warehouse. Moving forward, the company intends to further optimize its overall crude oil supply chain, strengthen market risk-hedging mechanisms, and improve the support system for cross-border crude oil circulation—thereby contributing to the high-quality development and enhanced efficiency of the petrochemical industry in the Lianyungang port area.

November 4, 2026

The Ministry of Industry and Information Technology (MIIT) recently announced the shortlisted entities for the 2025 "Open Competition" (a mechanism for selecting project leads) focused on innovation tasks for key fine chemical products. Jiangsu Hongjing New Materials Co., Ltd., a subsidiary of Shenghong Petrochemical Industry Group, has been selected for the project concerning "Ethylene-Acrylate Copolymer (EBA) for High-Voltage Cable Shielding Materials." This achievement signifies national-level recognition of Shenghong Petrochemical’s technical prowess and innovation capabilities in the field of high-end polyolefins, marking a solid step forward in my country’s pursuit of self-reliance and control over critical materials for high-voltage cables. This "Open Competition" initiative targets the core needs for high-end development and domestic substitution within the fine chemical sector. Focusing on three key areas—essential materials, critical equipment, and intermediate raw materials—the program selects industry-leading entities with exceptional innovation capacity and strong potential to drive industrial growth. The objective is to overcome "bottleneck" issues within industrial and supply chains, thereby enhancing the resilience and security of my country’s fine chemical sector. In the realm of essential materials, Ethylene-Acrylate Copolymer (EBA)—the core base resin for the ultra-smooth, semi-conductive shielding materials used in 110kV and higher-voltage cables—has long been heavily dependent on imports. This reliance has served as a critical constraint on the development of new power systems and the safe, stable operation of the power grid. The "15th Five-Year Plan" explicitly calls for accelerating the construction of a new power system and comprehensively enhancing the safety and stability of power system operations—a mandate that places higher demands on the domestic supply and quality upgrading of core materials for high-voltage power transmission. Statistics indicate that my country’s annual demand for 110kV/220kV high-voltage cables exceeds 15,000 kilometers, requiring over 20,000 tons of ultra-smooth, semi-conductive shielding material—a market with vast potential and significant strategic value. As a key domestic supplier in the high-end polyolefin sector, Hongjing New Materials has proactively risen to the challenge. Leveraging its integrated raw material supply chain and deep technical expertise, the company has established a comprehensive innovation system—spanning R&D, pilot testing, and industrial-scale production—thereby laying a robust foundation for the successful execution of the EBA development project. Following a period of technical groundwork, the company has completed small-scale pilot research on EBA (ethylene-butyl acrylate copolymer), mastered key synthesis processes, and established the necessary conditions for intermediate-scale pilot production. Simultaneously, the company is accelerating the construction of a 50,000-ton-per-year production facility for high-end copolymer materials—including EBA—aiming to ensure that its EBA products achieve world-class performance in critical areas such as resistivity stability and surface finish. Backed by a highly qualified R&D team with extensive experience in executing national-level research projects, the company possesses the robust capabilities required for large-scale EBA production and the consistent supply of high-quality material, providing comprehensive assurance for the successful completion of this "open-call" (challenge-based) project. Once implemented, the results of this project will break foreign technological monopolies, significantly mitigate supply chain risks, shorten lead times, and reduce overall costs. This will facilitate the quality upgrading of my country’s high-voltage cable industry, drive synergistic development across the upstream and downstream sectors, and fortify the material foundation essential for the safe operation of the power system. With a spirit of innovation and a drive to excel, Shenghong Petrochemical will use this selection as a new starting point. The company remains committed to an innovation-driven development strategy, focusing resources on overcoming critical core technical challenges and accelerating the industrialization of EBA. Shenghong Petrochemical will continue its pursuit of becoming a leader in high-end polymer material innovation, contributing even more significantly to safeguarding national energy security and building a nation that excels in advanced materials.

November 4, 2026

Recently, Jiangsu Shenghong Petrochemical Industry Group Co., Ltd. received encouraging news: four of its subsidiaries—Honggang, Hongjing, Hongwei, and Rongtai—have all been officially recognized as "National High-Tech Enterprises" and awarded the corresponding certification. Together with previously certified entities—Shenghong Refining & Chemical, Sirbang, and Hongyang Thermal Power—the entire industrial group has now achieved full-scale "National High-Tech Enterprise" status. This milestone in scientific and technological innovation fulfills the group’s firm commitment to "building a high-tech industrial group," injects powerful momentum into its future high-quality development, and underscores Shenghong Petrochemical’s robust capabilities and unwavering determination in the realm of technological innovation. The "National High-Tech Enterprise" designation serves as an authoritative benchmark for a company’s innovation capacity and core competitiveness. As one of the most prestigious national-level credentials, it significantly enhances a company’s brand image and credibility. Notably, this certification allows for a reduction in the corporate income tax rate from 25% to 15%. Furthermore, it provides a competitive edge in areas such as applying for key scientific and technological projects, accessing R&D expense tax deductions, securing financing, and obtaining local government project support or financial grants. "The group placed great importance on this certification process. We began preparations as early as the end of 2024," says Zhou Dapeng, a senior engineer for scientific research management at the Innovation Center. "Our Finance Department, Human Resources Department, various business divisions, and functional centers worked in close coordination, pooling their key talent to overcome challenges and lay a solid foundation for this success." The application process for this designation is rigorous and complex, encompassing multiple dimensions such as technological innovation, the commercialization of research findings, intellectual property, and financial compliance. To ensure the application process was both precise and efficient, the project team maintained a firm grip on every critical stage. Regarding the identification of innovation, team members engaged directly with R&D operations to pinpoint key technical challenges, distilling a range of proprietary innovations that underscore the company’s technological leadership. In terms of the translation of these innovations into practical outcomes, the team systematically compiled technical documentation, customer feedback, and market application data to clearly demonstrate the tangible value of these achievements. Regarding intellectual property (IP), the team guided technical staff to pursue multi-dimensional IP filings, creating a comprehensive protection network around core technologies. Furthermore, finance and R&D personnel collaborated closely to ensure the rationalization of R&D expenditures; by strictly adhering to accounting standards and the specific requirements for "High-Tech Enterprise" (HTE) certification, they standardized the categorization of R&D costs and optimized the expenditure structure. This provided a clear, robust justification for the reasonableness and sustainability of the company’s R&D investment, ensuring the rigor of the application materials. The full-scale success in securing "High-Tech Enterprise" certifications serves as a vivid reflection of the progress achieved in Shenghong Petrochemical’s strategic transformation. Over the past year, the industrial group has yielded a rich harvest in scientific and technological innovation: it inaugurated the Shenghong Advanced Materials Research Institute, accelerated the development of a pilot-scale testing base, commissioned an EVOH pilot plant, and pioneered new polyolefin polymerization and purification technologies—effectively overcoming technical barriers previously held by overseas entities. The group also established stable, dedicated sales channels for PETG, enabling targeted R&D. Focusing on "extending and strengthening the industrial chain," it developed a series of new fine chemical products that have gained strong market recognition and customer favor. Simultaneously, the industrial group has significantly accelerated its transition from a traditional refinery to a digitally intelligent plant. The "intelligent transformation and digital upgrade" strategy has been further implemented through the development of sophisticated large-scale models for refining and chemical production optimization. These models enable real-time tracking and assessment of key unit performance, facilitating optimized production scheduling. A jointly developed "operational navigation" system has substantially increased raw material recovery rates for the PDH (propane dehydrogenation) unit—a pioneering achievement in the refining and chemical sector that is set to drive profound changes in industrial production management. Additionally, the group became the first in the industry to deploy a "lights-out" (fully automated) laboratory, which has reduced manual labor requirements by 50% while doubling the efficiency of product testing. Building on the momentum of this comprehensive HTE certification success, the industrial group is set to accelerate its efforts in scientific research management and technological innovation as it looks toward 2026. According to a company representative, this recognition as a "High-Tech Enterprise" will serve as a new starting point. The company intends to further solidify its R&D foundation, refine its R&D systems, intensify efforts to achieve breakthroughs in core technologies, and accelerate the practical application and commercialization of more innovative outcomes. R&D initiatives for new products will focus on areas such as polyether polyols, acrylic derivatives, high-end polyolefins, polyester materials, and engineering plastics. Simultaneously, the company will invest in forward-looking research and engineering-oriented studies, striving to drive the industrial group’s transformation and high-quality development.