Planting Seeds for Future Growth
ANNUAL REPORT 2020 WE ARE Sinostar PEC HOLDINGS LIMITED
With a comprehensive production process and the right infrastructure to carry out seamless operations, we have been successful in being a trusted producer and supplier of petrochemical products in our network in the PRC, serving growth markets in strategic proximity to our nationwide footprint.
c SINOSTAR PEC HOLDINGS LIMITED | ANNUAL REPORT 2020 CONTENTS
2 Sinostar PEC at a Glance
6 Chairman’s Message
12 Our Business Segments
13 Key Products and Services
14 Operations Review
18 Latest Developments
19 Board of Directors
22 Key Management
26 Financial Highlights
27 Corporate Information
29 Sustainability Report
43 Corporate Governance
66 Directors’ Statements
70 Independent Auditors Report
74 Financial Contents
124 Statistics of Shareholdings
126 Notice of Annual General Meeting
SINOSTAR PEC HOLDINGS LIMITED | ANNUAL REPORT 2020 1 Sinostar PEC AT A GLANCE
We aim to be more than an experienced producer of petrochemical goods. We aim to be a committed supplier of product quality, prompt delivery and good customer service.
ABOUT Sinostar PEC HOLDINGS LIMITED
We are one of the largest producers and suppliers of downstream petrochemical products within the 400km radius of our production facilities within the Dongming Petrochem Industrial Zone in Dongming County of Shandong Province, PRC. Located within the Zhongyuan Oilfield - one of the PRC’s largest oil fields, rich in energy resources and connected by a comprehensive logistics network, our strategic placement permits us to hand out to the nearby populous and industrialised provinces such as Shandong, Henan, Anhui, Shanxi, Shaanxi, Sichuan, Hebei, Hubei and Zhejiang. We aspire to be more than an experienced producer of petrochemical goods as well as a committed supplier of product quality, prompt delivery and good customer service.
Shanxi Shandong
Hebei
Shaanxi
Sichuan
Henan Hubei Anhui Zhejiang
2 SINOSTAR PEC HOLDINGS LIMITED | ANNUAL REPORT 2020 Sinostar PEC AT A GLANCE
OUR CORPORATE STRUCTURE
Our Group comprises Sinostar PEC Holdings Limited and our PRC 100% controlled subsidiary, Dongming Hengchang Petrochemical Co., Ltd. which runs gas-fractionation production plants with an annual production capacity of 550,000 tonnes in the Dongming county. The Group has also completed the construction of a new polypropylene processing plant in 1Q of FY2021, which increases our annual production capacity of polypropylene by 5 times to 250,000 tonnes within the Dongming county.
We completed our acquisition of a 70% stake in Dongming Qianhai Petrochemical Co., Ltd. in late 2018, doubling our Propylene annual production capacity to 180,000 tonnes and extending our production lines to include Methyl tert-butyl ether (“MTBE”), Propylene, Hydrogen and Isobutylene.
Dongming Hengchang acquired a 100% equity interest in Dongming Changshun Transport Company Limited and its branch offices Dongming Changshun Transport Company Limited Ganyu Subsidiary Company since July 2015 from our strategic partner, Shandong Dongming Petrochem Holdings Group.
Sinostar PEC Holdings Limited 中星石化控股 有限公司
100%
Dongming Hengchang Dongming Qianhai Petrochemical Co., Ltd. 70% 东明恒昌化工有限公司 Petrochemical Co., Ltd. 东明前海化工有限公司 100% wholly-owned
100% 18% investment
Dongming Changshun Dongming Qianhai Reli Transport Company Limited Co., Ltd. 东明县昌顺运输有限公司 东明前海热力有限公司
Dongming Changshun Transport Company Limited Ganyu Subsidiary Company 东明县昌顺运输有限公司 赣榆分公司 Branch Office
SINOSTAR PEC HOLDINGS LIMITED | ANNUAL REPORT 2020 3 4 SINOSTAR PEC HOLDINGS LIMITED | ANNUAL REPORT 2020 Strength