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On August 7, 2025, the Intermediate People’s Court of Zibo officially ruled to accept the bankruptcy liquidation case of Shandong Huifeng Petrochemical Group Co., Ltd. This leading Shandong-based local refinery, founded in 1992 and once among China’s top 500 companies, ultimately failed to withstand the impacts of the industry downturn and withdrew from the market. The Glory and Difficulties of HSBC Petrochemicals 1. Past Glory HSBC Petrochemicals is located in Huantai County, Zibo. With a registered capital of 85 million yuan, it is regarded together with Dongming Petrochemicals, Jingbo Petrochemicals, Jincheng Petrochemicals, and Lihua Yi as the \"five leading local refineries in Shandong\", and is one of the benchmark companies in Shandong’s local refining industry. 2. Roots of the difficulties: Economic downturn and the impact of new energy: In recent years, economic pressures have increased both domestically and internationally. The new energy industry has developed at a rapid pace, while demand in the petrochemical industry has weakened. There is insufficient demand in the refined oil market, and product prices remain lower than those of raw materials, resulting in a significant decline in profitability. HSBC Petrochemical is located in Huantai County, Zibo. With a registered capital of 85 million yuan, it is known as one of the \"five major local refineries in Shandong\" alongside Dongming Petrochemical, Jingbo Petrochemical, Jincheng Petrochemical, and Lihua Yi, and it stands as one of the benchmark companies in Shandong’s local refining industry. In 2021, the **National Development and Reform Commission suspended and revoked the company’s crude oil quotas, forcing the company to process high-sulfur and high-acid feedstocks for an extended period; as a result, the costs associated with operating and maintaining the facilities kept rising. Furthermore, **adjustments to the consumption tax deduction policy have further reduced corporate profit margins.** Since 2025, several banks have demanded the early repayment of all loans and requested that protective measures be taken against the company, putting its operations in difficulty. Bankruptcy liquidation data: 1. Assets and liabilities: HSBC Petrochemical’s recorded total assets amounted to 7.503 billion yuan, while its liabilities were 8.062 billion yuan, primarily in the form of financial liabilities; there were no employee contributions or social fundraising activities. 2. Litigation cases: As of May 31, 2025, the company had a total of 66 litigation cases, with a total amount involved amounting to approximately 4.036 billion yuan.