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Introduction

Shenghong Holding Group Co., Ltd. (hereinafter referred to as "Shenghong group" or "Shenghong")

Founded in 1992, Shenghong Holding Group Co., Ltd. is an international high-tech industrial group with integrated development of the whole industrial chain of petrochemical refining, new energy, new materials and high-end textiles. The group has always closely followed the national strategy, focused on the development of the real economy, and built industrial bases in Suzhou, Lianyungang, Suqian, Taizhou and other places. It has comprehensively formed a unique domestic development model of "oil, coal and gas", "aromatics" and "olefins", and the integration of upstream and downstream industrial chains.

In 2023, Shenghong will rank 222nd in the "Fortune Global 500", 66th in the "Top 500 Chinese Enterprises", 11th in the "Top 500 Private Enterprises in China", and 7th in the "Top 500 Private Enterprises in China's Manufacturing Industry". Shenghong's vigorous development has been recognized by departments at all levels, and has successively won the "National Science and Technology Progress Award", "China Industry Award", "China Textile Light Science and Technology Progress Award", "National Technology Innovation Demonstration Enterprise", "National Advanced Unit of Circular Economy", "National Torch Plan Key High-tech Enterprise", "Yuan Baohua Enterprise Management Gold Award" and other honors issued by the State Council.

Blaze a trail to build a new pattern of diversified development

Developed and deeply cultivated in Shengze, the "silk capital", Shenghong's development has a first-mover advantage; Adhering to the development idea of daring to be the first, seizing the commanding heights of the future development of the industry and mastering the core technology, the rise of Shenghong has obtained the "acceleration" of the corner. Starting from the printing and dyeing at the bottom of the textile industry, Shenghong has created a unique way and continuously climbed to the upstream of the industrial chain, forming an industrial cluster with coordinated development of the upstream and downstream, and the main business sectors are in the leading position in the industry.

Through mergers and acquisitions, leasing and cooperative operations, Shenghong Printing & Dyeing has 17 branches, with an annual processing capacity of more than 2.4 billion meters, and its production capacity ranks among the top in the world, ranking first in the "top ten" of China's printing and dyeing industry. Adhering to the development strategy of "one factory, one product", Shenghong has accurately positioned each branch, formed a specialized, large-scale and standardized production pattern, and the product quality, product grade and added value are far ahead in the industry, and the development of digital machine printing has been selected into the national key new product list.

In 2003, Shenghong entered the chemical fiber industry. Adhering to the idea of "not engaging in duplicate construction, not doing conventional products, and not using conventional production technology", Shenghong Chemical Fiber is rooted in the dislocation competition strategy, focusing on the development and production of superfine fibers and differentiated functional fibers, effectively avoiding the market competition of conventional chemical fiber products, and mastering advanced technologies such as microfibers, memory fibers, bio-based synthetic polymer fibers, fully matting melt direct spinning polyester fibers, cationic microfibers, etc., and has complete independent intellectual property rights, the world's leading renewable PTT polyester and fiber industry chain. At present, Shenghong Chemical Fiber has a total production capacity of more than 3.55 million tons/year, and the product differentiation rate has reached 90%, and it is known as the "Global Differentiated Fiber Expert".

In 2010, Shenghong actively extended the industrial chain, from Suzhou to Lianyungang in the north, relying on the advantages of the port, location and industry, to build a new petrochemical industry cluster. The project is located in the National Eastern, Central and Western Regional Cooperation Demonstration Zone (Xuwei New District, Lianyungang City, Jiangsu Province), with a planned area of about 16 square kilometers, integrating production, R&D, logistics and other functions, adhering to the integrated refining and chemical industry, and the balanced development of the whole industrial chain of high-end new materials, and is a highly influential pillar brand among the seven world-class petrochemical industrial bases in the country. Up to now, Shenghong has invested nearly 200 billion yuan to lay out and build 16 million tons/year of refining and chemical integration, 2.4 million tons/year of alcohol-based polygeneration, 700,000 tons/year of propane industry chain, 3.9 million tons/year PTA and other major projects, and complete supporting more than 5 million cubic meters of storage tank farm, Jiangsu's first 300,000-ton crude oil berth, a number of 100,000-ton to 50,000-ton liquid chemical berths, and cogeneration projects. Shenghong Petrochemical has become a leading enterprise that drives the high-quality development of Lianyungang, and also lays a solid foundation for Shenghong to build a world-class famous enterprise.

Ingenuity-based, innovation-casting, cultivating new momentum for leapfrog development

Innovation is the inexhaustible driving force for enterprise development, and it is also the core element to create high-quality Shenghong. At the national level, more and more "innovators" are needed to realize the transformation from "Made in China" to "Created in China", build an innovative country, and promote a fundamental transformation of the development mode. As far as Shenghong is concerned, from "Shenghong speed" to "Shenghong quality", more and more "innovators" are also needed.

In recent years, Shenghong has built a national enterprise technology center, Jiangsu (Shenghong) Textile New Materials Research Institute, a national textile testing center, a postdoctoral research station and other scientific research and innovation platforms, forming the "strongest brain" to support innovation and development. From the tracking of cutting-edge technology to the update of production line equipment, this "brain" covers the research and development of all aspects of the industry. In June 2019, the National Advanced Functional Fiber Innovation Center led by Sheng Hong was approved by the Ministry of Industry and Information Technology, which is the thirteenth national innovation center in the country and the first in the province, and the first national innovation center led by private enterprises in the country. According to the plan, the Advanced Functional Fiber Innovation Center will tackle key problems in the field of key common core technologies to provide strong support for the high-quality development of the national advanced functional fiber industry.

In the field of microfiber, Shenghong has carried out many technical breakthroughs with experts at home and abroad, and successfully overcome the technical barriers of microfiber, reaching 0.15dtex (0.15 grams per 10,000 meters), and the current annual output of microfiber exceeds the total output of Europe, America, Japan and South Korea and other countries and regions. Shenghong also broke the monopoly of foreign enterprises on the core technology of PTT, set a number of records in the history of process technology in the field of textile PTT in the world, and became the first company in China with complete intellectual property rights to produce bio-based PDO and PTT fiber new materials, so that China's textile industry has entered the international first-class level in the field of PTT; The "Binghong Silk" product and the direct spinning "Binghong Silk" industrialization project are listed as the National Key New Product Plan and the National Torch Program respectively.

Shenghong takes the development of intelligent manufacturing as the strategic focus of the enterprise, and independently develops the first set of production intelligent logistics system in the chemical fiber industry, which fills the gap in the research and development of China's chemical fiber production intelligent logistics system, and undertakes the "key industry revitalization and technological transformation project" of the Ministry of Industry and Information Technology of the People's Republic of China, to create a model enterprise of industrialization, intelligence and information integration. Focusing on the national strategy of integrated development of the Yangtze River Delta, Shenghong plays a leading role in the "digital" transformation, and empowers the transformation and upgrading of traditional industries through digital chain collaboration. The "Shenghong Smart Printing and Dyeing Industrial Internet Platform" built by the group was rated as a national characteristic professional industrial Internet platform, becoming the only pilot demonstration project in the national textile printing and dyeing industry, guiding the upstream and downstream of the textile supply chain to implement the transformation of Internet + and realize the transformation of industry management. At the 2021 (3rd) Global Industrial Internet Conference, with its remarkable achievements in digital transformation, as well as its advantages in highly integrated innovation and full industry chain coverage in the field of industrial Internet, Shenghong Group's "Hongyun" intelligent management platform, as the only representative of the chemical raw materials and chemical products manufacturing industry, was successfully selected as one of the top ten cases of industrial Internet integration and innovative application.

Sheng Hong also actively uses standards to seize the commanding heights and win the right to speak internationally. The company has successively undertaken the convener of the International Standard Man-made Fiber Working Group and the Secretariat of the International Standard Dyeed Textiles and Dyes Test Sub-Committee, and has become the formulator and publisher of international standards in this field. In 2015, the international standard project "Test Method for Boiling Water Shrinkage of Textile Chemical Fiber Filament" led by Sheng Hong was released and implemented, which became the first international standard in China's chemical fiber industry and achieved a breakthrough in the formulation and revision of international standards led by domestic chemical fiber enterprises.

After entering the petrochemical field, Shenghong quickly gained a firm foothold by relying on vigorous innovation, laying the foundation for the expansion of the industrial chain. In April 2017, Shenghong established an academician advisory committee composed of 12 academicians of the "two academies" to provide the most cutting-edge technology and scientific and technological achievements for the development of enterprises. The company has successively established Shenghong Petrochemical Innovation Center, Advanced Materials Research Institute and other world-class innovation platforms, with the goal of realizing the convergence of talents, projects, patents and industries, attracting projects through shareholding, holding or acquisition, building a sharing platform around the development of the petrochemical industry chain, accelerating the transformation of scientific and technological achievements into real productivity, and creating a "Shenghong Innovation" brand with international influence. Shenghong has cooperated with Jiangsu Ocean University to build a provincial-level enterprise graduate workstation, and has established good cooperative relations with Tsinghua University, the Institute of Petrochemical Research of the Chinese Academy of Sciences and other scientific research institutes, laying a good industrial ecology for the development and growth of the petrochemical industry and providing strong technical support.

In the past two years, Shenghong Petrochemical has carried out more than 100 independent R&D and cooperative development projects, and successfully developed a series of new products such as photovoltaic-grade EVA resin, and many products have filled the domestic gap. Shenghong Petrochemical photovoltaic grade EVA has won the "Science and Technology Progress Award", "New Material Innovative Product Award", "Jiangsu Boutique", and the first prize of "Science and Technology Innovation Achievement Transformation Award" of Jiangsu Science and Technology Association. In addition to photovoltaic-grade EVA resin products, Shenghong Petrochemical is also the only enterprise in China that stably mass-produces high-melt index hot-melt adhesive EVA, and is also the only enterprise in China that has the independent production technology of EVA and POE, two mainstream photovoltaic film materials.

Ecological enterprise, green first, depict a new picture of sustainable development

Green safety is an important goal and important symbol of Shenghong's own development, and it is also an important means for Shenghong to promote high-quality development, starting from a broader perspective, more comprehensive fields, and more critical links, Shenghong is gradually building a clean, low-carbon, safe and efficient energy system, and strive to deeply integrate with high-quality development, echo and promote each other with high-quality development, forming a virtuous circle.

In order to break through the bottleneck of high energy consumption and large emissions of printing and dyeing, Shenghong joined hands with Donghua University to tackle key problems and use the world's advanced membrane treatment technology to carry out advanced treatment of printing and dyeing wastewater. At present, Shenghong printing and dyeing in Jiangsu and Zhejiang has built 8 sets of reclaimed water reuse projects, the use of printing and dyeing wastewater low energy consumption and high recovery rate of membrane intensive system technology, significantly improve the utilization efficiency of water resources, reclaimed water reuse rate of more than 70%, the daily printing and dyeing wastewater reuse of 45,000 tons, much higher than the industry average, was awarded the first transformation and upgrading demonstration enterprise in the national printing and dyeing industry, the group led the "printing and dyeing wastewater low-cost treatment and efficient recycling of key technologies and industrialization" The project won the first prize of China Textile Science and Technology Progress Award. Shenghong also follows the principles of green production source, energy-saving production equipment, and environmental protection of sewage treatment, and vigorously promotes projects such as air treatment and sludge incineration to promote the green development of the industry.

Shenghong deeply integrates green technology into the industrial chain, all links of the value chain, and the entire life cycle of product production. In order to break the monopoly of foreign technology and lead the improvement of the industry's green design capabilities, Shenghong overcame difficulties, developed the integrated technology of green preparation of bio-based PTT fibers, successfully broke the technology monopoly of multinational companies such as Shell and DuPont, and became the largest manufacturer of bio-based PDO and PTT fibers in China. The carbon emissions of the whole life cycle of products are reduced by 15%, becoming an advanced model of green manufacturing in the textile industry.

At present, Shenghong Chemical Fiber has set up industrial bases in Suzhou and Suqian to produce green and environmentally friendly products such as recycled polyester fibers and dope dyed fibers. It has built the world's first recycled fiber production line from bottle flakes to spinning, and plans to build the world's largest recycled polyester fiber project, with an annual production capacity of 600,000 tons and nearly 36 billion waste plastic bottles that can be recycled throughout the year. Dope dyed fibers control the "dyeing and finishing" process at the raw fiber stage, which can reduce CO2 emissions by nearly 50% compared to the traditional production process from raw material to fabric.

In the process of construction and production of Lianyungang Industrial Base, Shenghong resolutely puts "safety and green" in the first place, implements the development concept of "law-abiding and trustworthy, environmental protection first", adheres to the development concept of "energy saving and consumption reduction" and "environmental protection" in the construction and production process, innovates the green development model, realizes the coupling development of oil-to-olefins, methanol-to-olefins, and coal clean reuse. It has gradually formed a benign interaction of "environmental protection and operation" to build a world-class ecological, intelligent and safe park. At present, Shenghong's main industrial sectors have achieved full coverage of national "green factories".

Under the guidance of the "dual carbon" goal, Shenghong has launched carbon peaking, carbon neutrality planning and CCUS (carbon capture, utilization and storage) project research, exploring cutting-edge carbon emission reduction technologies and long-term technical paths to achieve zero-carbon production. In September 2023, Shenghong Petrochemical's 100,000 tons/year carbon dioxide to green methanol project was officially put into operation, building the industry's first green carbon-negative industrial chain of "carbon dioxide to new energy materials". On the same day, Shenghong Petrochemical officially released the industry's first "Green Carbon-Negative Industry Chain White Paper", aiming to provide a reference and reference for the green transformation of the industry with a number of innovative practices of carbon dioxide resource utilization.

Focus on the strategic transformation of "dual carbon" and build a world-class new energy and new material cluster

Against the backdrop of major changes unseen in the world in a century and China's economy entering a new stage of development, China's industrial structure, development concept and development mode are undergoing tremendous changes. The new development pattern of "dual circulation" and the proposal of the "dual carbon" goal have also made the original global industrial chain, supply chain and value chain face major adjustments.

Focusing on the national strategic direction and the requirements of the "double carbon" goal, Shenghong aims at national energy transformation, industrial security, high-end new energy and new materials, comprehensively adjusts its strategic positioning, further promotes strategic transformation, and reflects the responsibility of private enterprises. During the "14th Five-Year Plan" period, it is planned to build the company into a high-tech industrial group with "strong basic raw material guarantee capabilities, world-leading scientific research and innovation capabilities, and world-class new energy and new material supply capabilities".

Through the advanced layout, Shenghong has laid a solid foundation in the fields of new energy and new materials in terms of scientific and technological research and development strength, production capacity scale, industrial chain coordination, cutting-edge layout, etc., and has formed an "iron triangle" and "value chain" of "cutting-edge technology, raw material guarantee, production and application", which are both synergistic and complementary to each other. With the three major raw material platforms of oil head (crude oil refining), coal head (alcohol-based polygeneration) and gas head (propane dehydrogenation), Shenghong has gradually built a new development pattern of "core raw material platform + new energy and new materials".

According to the strategic plan, Shenghong will take bulk petrochemical raw materials such as refining and chemical integration projects as the platform guarantee basis, comprehensively accelerate the transformation of strategic emerging industries, and form a new "1+N" pattern of core raw material platform + new energy, new materials and other diversified industrial chains. Following the principle of "market demand, research foundation, and breakthrough potential", aiming at the world's advanced level, helping the development of national strategic emerging industries to achieve safety, independence and controllability, and accelerating the construction of a world-class production and R&D base for new energy and new materials.

Shenghong has built a new energy storage battery and system integration project in Taizhou, an energy storage battery super factory and a new energy battery research institute project in Zhangjiagang, and entered the "trillion-level energy storage track" to create a "one-stop" green energy storage solution for high-performance lithium battery cell production, battery assembly and system integration. The project has a technical "moat" of the whole industry chain and has the ability to innovate and break through in the field of new energy storage in the world. With the large platform of upstream core raw materials and the industry-leading industrial coupling capabilities, battery cells and other core components can realize the self-sufficiency of ultra-high molecular weight polyethylene separator materials, DMC electrolyte materials, and lithium iron phosphate, and achieve more than 65% cost self-control in core raw materials, and are in the leading position in the world in terms of economic benefits, environmental benefits, and anti-cyclical risk capabilities. In the future, it will build a "global super factory" and lay out the global layout in the mode of "big platform + big factory" to build a world-class new energy industrial base.

With the heart of "the great man of the country", strive to be the "practical one". In the face of the new era and new mission, Shenghong Holding Group will actively integrate into the national strategic layout, further enhance the speed of transformation, actively build a green, low-carbon and circular industrial system, make every effort to build a world-class new energy and new material industrial cluster, accelerate the construction of a world-class enterprise with global competitiveness, and depict the blueprint of Shenghong in the new era with high-quality development.