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On March 14, Wanhua Chemical released its \"2021 Annual Report\": the company achieved total operating revenue of 145.538 billion yuan in 2021, a year-on-year increase of 98.19%； The net profit attributable to the parent company amounted to 24.649 billion yuan, representing a year-on-year increase of 145.47%. The net profit after deducting non-recurring items attributable to the parent company was 24.356 billion yuan, representing a year-on-year increase of 155.2%. The growth in performance was mainly driven by (1) an increase in production volume: the MDI plant in Yantai (with a capacity of 600,000–1.1 million tons) completed its technical upgrades, and capacities from the first phase of the million-ton ethylene project were put into use ； (2) Rising prices: Supply shortages in some chemical manufacturing facilities around the world due to factors such as extreme weather and pandemics have led to a temporary imbalance between supply and demand for chemical products, resulting in a significant increase in the prices of these products for the company. The petrochemical business ranked first for the first time. In terms of petrochemical products, the company generated revenue of around 61.4 billion yuan from its petrochemical products in 2021, a significant increase of 132.46% on a year-on-year basis. Benefiting from the commissioning of the first phase of the million-ton ethylene project at the company’s Yantai industrial park in November 2020, the company’s petrochemical business saw a significant increase in revenue as well as in production and sales volumes. For the first time, the revenue generated by the petrochemical business surpassed that of the polyurethane business, accounting for 42.2% of the total revenue. In 2021, the company’s production of petrochemical products amounted to 4 million tons, representing a year-on-year increase of 79.49%. In Q4 2021, the production of these petrochemical products reached 1.22 million tons, which was the highest figure among all quarters of that year. Looking at different products, in 2021, butanol, butyl acrylate, NPG (imported and hydrogenated), and acrylic acid experienced the highest price increases, with year-on-year gains of 100.5%, 95.8%, 85.0%, and 72.2% respectively. The company has currently established access to the three major petrochemical raw materials: C2, C3, and C4. The petrochemical business has become a key pillar of the company’s development; it features strong synergy within the supply chain as well as a complementary product structure, thereby providing the necessary raw materials for the development of new materials. The first phase of Wanhua Chemical’s large ethylene project has been fully put into operation. The company now has an annual production capacity of 1 million tons for ethylene and 750,000 tons for propylene. The second phase of this large ethylene project is under development, as the company seeks to capitalize on the emerging opportunities in the high-end polyolefin market represented by POE. Wanhua Chemical is building a C2/C3/C4 industrial chain that spans from upstream raw materials such as LPG to downstream products like ethylene and propylene. In the future, we will continue to develop more refined products with higher added value and unique advantages, such as modified PP, super absorbent polymer (SAP), neopentyl glycol (NPG), polyether polyols, MIBK, and isophorone. For Phase I of the Large Ethylene Project: the total investment amounts to 16.8 billion yuan; it covers an area of 2,400 mu. The project includes the construction of a 1-million-ton/year ethylene complex, a 400,000-ton/year polyvinyl chloride plant, a 150,000-ton/year ethylene oxide plant, a 450,000-ton/year LLDPE plant (using Unipol technology), a 350,000-ton/year HDPE plant (utilizing Hostalen ACP technology), a 300,000-ton/year PP plant (employing Spheripol technology), a 300,000/650,000-ton/year propylene oxide/styrene plant, a 50,000-ton/year butadiene plant, as well as supporting auxiliary and utility facilities. Environmental impact assessment announcement for the Second Phase of the Large-Scale Ethylene Project: The total investment in the project is 19.98 billion yuan, with a land area of 1,935 mu. The construction period is three years. The construction scope includes a 1.2-million-ton/year No. 2 ethylene cracking unit (including a PSA unit with a capacity of 60,000 Nm³/h), a 700,000-ton/year No. 2 cracked gasoline hydrogenation unit (including a 30,000-ton/year styrene extraction unit), a 420,000-ton/year aromatics extraction unit, a 190,000-ton/year No. 2 butadiene unit, a 350,000-ton/year No. 2 high-density polyethylene (HDPE) unit, a 250,000-ton/year low-density polyethylene (LDPE) unit, a 200,000-ton/year polyolefin elastomer (POE) unit, and a 500,000-ton/year No. 2 polypropylene (PP) unit, among others. The 200,000-ton POE project is expected to come online in 3 years. The company expects to commission a POE production capacity of 100,000 tons per year in 2023, and increase it to 200,000 tons per year by 2025. Multiple projects are progressing continuously! Full operation is expected to generate additional revenue of over 140 billion. On March 4, the HCTA/TMP/NPG project at Wanhua Yantai Industrial Park, constructed by China National Chemical Corporation Second Company, officially commenced construction. The project is located in the Wanhua Yantai Industrial Park in Yantai City, Shandong Province, and is a strategic project for Yantai Wanhua Chemical. The total investment for the project is 1.5 billion yuan, with a construction period of 12 months. The project consists of the HCTA unit, TMP unit, and NPG unit, and makes use of multiple sets of advanced technologies independently developed by Wanhua; some of these technologies overcome key technical barriers, marking the first time such technologies have been produced domestically.