Jiangsu Dongfang Shenghong Co., Ltd. 2023 Annual Report Abstract _ Sina Finance

1、 Important tips

The summary of this annual report comes from the full text of the annual report. In order to fully understand the company's operating results, financial status and future development plans, investors should carefully read the full text of the annual report in the media designated by the CSRC.

All directors have attended the board meeting to review this report.

Non standard audit opinion tips

□ Applicable √ Not applicable

Profit distribution plan or plan for converting reserve fund into share capital in the reporting period reviewed by the Board of Directors

√ Applicable □ Not applicable

Whether to increase capital stock with accumulation fund

□ Yes √ No

The profit distribution plan reviewed and approved by the Board of Directors of the Company is: based on the total share capital on the equity registration date when implementing the distribution plan in the future, cash dividends of RMB 1.00 (tax included) and bonus shares of 0 (tax included) will be distributed to all shareholders for every 10 shares, and no capital reserve will be converted into capital stock.

Preferred share profit distribution plan for the reporting period approved by the Board of Directors

□ Applicable √ Not applicable

2、 Basic Information of the Company

1. Company Profile

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2. Introduction to main businesses or products during the reporting period

The company is a global leading energy and chemical enterprise with vertical integration of the whole industrial chain and in-depth layout of new energy and new material business. The company has been working hard in the fields of new energy, new materials, petroleum refining and polyester chemical fiber for many years, has diversified olefin production processes, and has gradually formed a chemical complex with vertical integration of the whole industrial chain. The "1+N" industrial layout extends to diversified industrial chains such as new energy, new materials, electronic chemistry, biotechnology, etc. relying on the "big chemical" comprehensive chemical raw material supply platform built by refining chemical integration, alcohol based polygeneration, propane industrial chain project.

From the upstream and downstream relationship of the industrial chain, the upstream refining plate is the basic raw material guarantee platform for the downstream polyester chemical fiber industry and new material industry. The petrochemical raw materials such as ethylene, propylene, PX, benzene, vinyl acetate, ethylene glycol, phenol and acetone produced by the 16 million ton/year refining and chemical integration project of Shenghong Refining and Chemical Co., Ltd. can basically meet the raw material demand of downstream PET, polyester chemical fiber, acrylonitrile, ethylene oxide, EVA, propylene oxide and other products.

At present, the company has 16 million tons/year refining and chemical integration unit, 2.4 million tons/year methanol to olefin (MTO) and 700000 tons/year propane dehydrogenation (PDH) unit, realizing the full coverage of three olefin production process routes of "oil head", "coal head" and "gas head". Through the differentiated and diversified raw material source layout of "oil, coal and gas", the company has more selectivity and possibility in terms of comprehensive cost control, coping with cycle fluctuation risk, new product research and development and process route selection of downstream high-end petrochemical products; Give full play to the advantages of scale operation, reduce the operational risk caused by cyclical fluctuations in the industry, and better realize the anti cyclical, cross cyclical and steady development.

Industrial chain matrix under the "1+N" development strategic plan

(1) Refining and chemical business

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As the core raw material supply platform of the company's "1+N" strategic industrial layout, the 16 million ton/year refining and chemical integration project of Shenghong will successfully open the whole process and be fully put into production in December 2022. The project has the largest atmospheric and vacuum distillation unit in China, with a processing capacity of 16 million tons/year. The main products include 1.1 million tons/year ethylene, 2.8 million tons/year paraxylene, 1.9 million tons/year ethylene glycol, 300000 tons/year vinyl acetate, 400/250 million tons/year phenol/acetone and other basic chemical products.

(2) New energy and new material business

Sierbang Petrochemical is the main business entity of new energy and new materials for chemical industry of the company. At present, it has formed a diversified product structure of coordinated development of ethylene, propylene and derived fine chemicals, and has a methanol to olefin capacity (MTO) of 2.4 million tons/year, which is the largest single set of alcohol based polygeneration plant in the world; Propane Dehydrogenation Unit (PDH) has a capacity of 700000 tons/year; At the same time, it has 1.04 million tons/year acrylonitrile, 300000 tons/year EVA, 340000 tons/year MMA, 300000 tons/year EO and its derivatives and other fine chemical products. During the reporting period, with the commissioning of the fourth phase 260000 ton acrylonitrile unit of Sierbang Petrochemical, the total production capacity of acrylonitrile jumped to the first place in the world; At the same time, Sierbang Petrochemical is also a leading enterprise in EVA industry.

(3) Polyester chemical fiber business

The company has established chemical fiber production bases in Suzhou and Suqian respectively, with a polyester filament production capacity of 3.55 million tons/year. The products are mainly differentiated DTY. Among them, the capacity of recycled polyester fiber is 550000 tons/year, ranking first in the world. Rooted in the dislocation competition strategy, the company focuses on the development and production of ultra-fine fibers and differential functional fibers, and is known as the "global differential fiber expert". The company led the establishment of a national advanced functional fiber innovation center, and built a world leading bio based PDO monomer, PTT fiber and recycled polyester fiber industry chain with complete independent intellectual property rights.

3. Main accounting data and financial indicators

(1) Major accounting data and financial indicators in recent three years

Whether the company needs to retroactively adjust or restate the accounting data of previous years

√ Yes □ No

Retroactive adjustment or restatement of reasons

Business combination under the same control

Unit: yuan

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(2) Major accounting data by quarter

Unit: yuan

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Whether there is a significant difference between the above financial indicators or their total amount and the financial indicators related to the quarterly report and semi annual report disclosed by the company

√ Yes □ No

It is caused by retroactive adjustment of financial data of business combination under the same control in the current period.

4. Share capital and shareholders

(1) Number of common shareholders and preferred shareholders with restored voting rights and shareholding of the top 10 shareholders

Unit: share

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Share lending of the top ten shareholders in refinancing business

√ Applicable □ Not applicable

Unit: share

■

The top ten shareholders changed from the previous period

√ Applicable □ Not applicable

Unit: share

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Note: Lianyungang Bohong Industrial Co., Ltd. did not participate in refinancing business.

(2) Total number of preferred shareholders of the Company and shareholding of the top 10 preferred shareholders

□ Applicable √ Not applicable

There was no shareholding of preferred shareholders in the reporting period.

(3) Disclose the property rights and control relationship between the Company and the actual controller in the form of block diagram

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Note: Jiangsu Shenghong Technology Co., Ltd., the controlling shareholder of the company, holds 43.13% of the company's shares (including the GDR shares issued by the company).

5. Bonds existing on the approval date of the annual report

√ Applicable □ Not applicable

(1) Basic information of bonds

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Note: 0.20% in the first year, 0.40% in the second year, 0.60% in the third year, 1.50% in the fourth year, 1.80% in the fifth year, and 2.00% in the sixth year. The redemption price at maturity is 108 yuan (including the last interest).

(2) Latest tracking rating and rating changes of corporate bonds

Lianhe Credit Rating Co., Ltd. issued the "Lianhe [2023] No. 3619" Credit Rating Announcement in June 2023, and determined to maintain the long-term credit rating of the company's main body as AA+by tracking, analyzing and evaluating the credit status of the company's main body and its related bonds“ Shenghong convertible bond ”The credit rating is AA+, and the rating outlook is stable.

(3) Main accounting data and financial indicators of the Company in recent two years as of the end of the reporting period

Unit: 10000 yuan

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3、 Important matters

Not applicable.

Jiangsu Dongfang Shenghong limited company

Chairman: Miao Hangen

April 25, 2004

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-030

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond

Jiangsu Dongfang Shenghong Co., Ltd

Announcement on Foreign Exchange and Interest Rate Derivatives Trading

The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate and complete, and there are no false records, misleading statements or major omissions.

Important tips:

1. Transaction purpose: reduce the impact of exchange rate and interest rate fluctuations by carrying out foreign exchange and interest rate derivatives transactions, and improve the company's operational stability.

2. Transaction type: foreign exchange hedging business related to the settlement currency used by its own production and operation, and interest rate hedging business related to financing interest rate.

3. Trading instruments: including but not limited to forward settlement and sales of foreign exchange, foreign exchange swaps, foreign exchange options, foreign exchange futures, currency swaps, interest rate swaps, interest rate options, etc.

4. Trading place: banks and other domestic and foreign financial institutions.

5. Investment amount: the total balance at any time point in the investment period (including the relevant amount of reinvestment of the income from the above investment) does not exceed 3.5 billion US dollars (other currencies are converted into US dollars at the current exchange rate).

6. Transaction procedures have been fulfilled: the Company held the 14th meeting of the 9th Board of Directors on April 24, 2024, and deliberated and passed the Proposal on Conducting Foreign Exchange and Interest Rate Derivatives Trading Business with 7 affirmative votes, 0 negative votes and 0 abstention votes. This transaction needs to be submitted to the general meeting of shareholders for deliberation.

7. Special risk tip: The Company's foreign exchange and interest rate derivatives trading business is to better deal with exchange rate and interest rate risks, lock transaction costs, reduce operational risks, and enhance the Company's financial stability. It does not engage in derivatives trading for the purpose of speculation, but also has certain market risks, operational risks, legal risks, etc. Remind investors to pay full attention to investment risks.

1、 Overview of investment

1. Investment purpose

The import and export business of Jiangsu Dongfang Shenghong Co., Ltd. (hereinafter referred to as "the Company") is mainly settled in foreign currency, which is greatly affected by international political and economic uncertainties. In the financial market environment of two-way fluctuation of RMB exchange rate and marketization of interest rate, it is necessary to carry out foreign exchange and interest rate derivatives transactions in order to avoid the exchange rate and interest rate risks faced by import and export business and foreign currency borrowings.

Based on the amount of the Company's foreign exchange business such as commodity import and export business, foreign currency loans, and the business cycle of related businesses, in combination with the Company's capital management requirements and daily business needs, the Company plans to carry out foreign exchange and interest rate derivatives transactions to resolve the exchange rate or interest rate risks faced by the local and foreign currency assets and liabilities arising from the operation and financing business.

2. Investment amount

The total balance at any time point in the investment period (including the relevant amount of reinvestment of the income from the above investment) does not exceed 3.5 billion US dollars (other currencies are converted into US dollars at the current exchange rate).

3. Transaction mode

The Chairman of the Board of Directors of the Company shall organize and establish a leading group as the decision-making body to manage the foreign exchange and interest rate derivatives trading business, which shall operate in accordance with the Management System of Derivatives Trading and the relevant business rules and procedures formulated by the Company.

The Company will carry out foreign exchange and interest rate derivatives transactions in China, Singapore and Hong Kong, China against the background of normal foreign exchange assets and liabilities. The business amount and business period match the expected period of foreign exchange receipts and payments to manage the exchange rate and interest rate risk of subsidiaries in China, Singapore and Hong Kong, China. The types of investment include but are not limited to forward settlement and sales of foreign exchange, foreign exchange swaps, foreign exchange options, foreign exchange futures, currency swaps, interest rate swaps, interest rate options, etc. The counterparties are institutions with foreign exchange and interest rate derivatives business operation qualifications approved by the State Administration of Foreign Exchange and the People's Bank of China, or by the financial regulatory authorities of the country or region where they are located.

4. Investment Term

The investment period is from the date of deliberation and approval of the 2023 annual general meeting of shareholders to the date of holding the 2024 annual general meeting of shareholders.

2、 Review procedure

On April 24, 2024, the Company held the 14th meeting of the 9th Board of Directors, deliberated and unanimously adopted the Proposal on Developing Foreign Exchange and Interest Rate Derivatives Trading Business. Based on the amount of foreign exchange business such as the company's commodity import and export business, foreign currency loans, and the business cycle of related businesses, it is estimated that the company and its holding subsidiaries will carry out foreign exchange and interest rate derivatives trading business in 2024, and the balance at any time point in the investment period (including the relevant amount of reinvestment of the income from the above investment) The total amount does not exceed 3.5 billion US dollars (other currencies are converted into US dollars at the current exchange rate). The investment period is from the date of deliberation and approval of the 2023 annual general meeting of shareholders to the date of holding the 2024 annual general meeting of shareholders.

This matter needs to be submitted to the General Meeting of Shareholders for deliberation. This matter does not involve connected transactions.

3、 Investment risk analysis and risk control measures

1. Investment risk analysis

The purpose of the Company's foreign exchange and interest rate derivatives trading business is to better deal with exchange rate and interest rate risks, lock transaction costs, reduce operational risks, enhance the Company's financial stability, and not engage in derivatives trading for speculative purposes. The company has fully considered the factors such as settlement convenience, transaction liquidity, exchange rate volatility and the political, economic and legal risks of transactions in relevant countries and regions, but at the same time there will be certain risks in transactions. The main risks are as follows:

(1) Market risk: The difference between the exchange rate of foreign exchange and interest rate derivatives trading contracts, interest rate and the actual exchange rate and interest rate on the maturity date will generate trading gains and losses. During the duration of foreign exchange and interest rate derivatives, revaluation gains and losses will occur in each accounting period, and the accumulated value of revaluation gains and losses to maturity is equal to transaction gains and losses.

(2) Operational risk: When conducting foreign exchange and interest rate derivatives trading business, if the operator fails to report and approve according to the prescribed procedures, or fails to accurately, timely and completely record the trading business information, it may lead to loss of derivatives business or loss of trading opportunities.

(3) Legal risk: When carrying out foreign exchange and interest rate derivatives trading business, there are trading personnel who fail to fully understand the terms of the trading contract and product information, resulting in trading business not in compliance with legal provisions or external legal disputes, resulting in enterprise losses.

2. Risk control measures

(1) Foreign exchange and interest rate derivatives transactions are carried out for the purpose of locking costs, avoiding and preventing exchange rate and interest rate risks, and speculation and arbitrage transactions purely for profit are prohibited.

(2) Formulate and strictly implement relevant business rules and processes, and control risks by implementing authorization, post containment, internal audit and other measures.

(3) Carry out relevant business with legally qualified institutions, and carefully review the relevant contract terms signed to prevent legal risks.

(4) Strengthen professional ethics education and business training, improve the comprehensive quality of relevant personnel, and form efficient risk handling procedures.

4、 Impact on the company and related accounting treatment

The Company's foreign exchange and interest rate derivatives trading business is to achieve steady operation, help avoid the risk of the foreign exchange market, reduce the cost of foreign exchange settlement, and will not have an adverse impact on the Company's financial and operating conditions, which is in line with the interests of the Company and all shareholders.

The Company will, in accordance with the relevant provisions and guidelines of the Ministry of Finance, such as Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 24 - Hedge Accounting, Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments, conduct corresponding accounting treatment for foreign exchange and interest rate derivatives business, and reflect relevant items in the financial statements.

5、 Documents for future reference

1. Resolutions of the 14th Meeting of the 9th Board of Directors of the Company.

It is hereby announced.

Jiangsu Dongfang Shenghong Co., Ltd

Board of Directors

April 25, 2024

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-029

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond

Jiangsu Dongfang Shenghong Co., Ltd

Announcement on Developing Commodity Hedging Business

Important tips:

1. Transaction purpose: commodity hedging business can reduce the risk of price fluctuation of raw materials and products, and better avoid the adverse impact of large fluctuations in crude oil and product prices on the company's operations.

2. Trading varieties: trading contracts for crude oil, naphtha, refined oil, paraxylene (PX), purified terephthalic acid (PTA), ethylene glycol (MEG), methanol, liquefied petroleum gas (LPG), styrene, pure benzene and other products related to the industrial chain.

3. Trading instruments: futures/paper contracts and corresponding options and over-the-counter swaps.

4. Trading place: all major futures/paper exchanges at home and abroad that are compliant and meet the hedging business conditions of the company.

5. Transaction amount: The total amount of the margin balance (including the relevant amount of reinvestment of the proceeds of the above investment, excluding the full amount of margin paid for the delivery of the current position) at any point in the investment period does not exceed 3.5 billion yuan (other currencies are converted into RMB at the current exchange rate).

6. Procedures performed for the transaction: The Company held the 14th meeting of the 9th Board of Directors on April 24, 2024, deliberated and passed the Proposal on Developing Commodity Hedging Business with 7 affirmative votes, 0 negative votes and 0 abstention votes. This transaction needs to be submitted to the general meeting of shareholders for deliberation.

7. Risk tip: The investment varieties of the Company's commodity hedging business are limited to the products related to the Company's production and operation or the raw materials needed to avoid the adverse impact of price fluctuations on the Company's operation and reduce the operational risk, but there will also be certain risks. Remind investors to pay full attention to investment risks.

1、 Overview of investment

1. Investment purpose

Jiangsu Dongfang Shenghong Co., Ltd. (hereinafter referred to as "the Company") is mainly engaged in the production and sales of petroleum and chemical products and chemical fiber products, and its prices are greatly affected by international and domestic prices. In order to avoid the adverse impact of the sharp fluctuations in crude oil and product prices on the company's operation, the company plans to carry out commodity hedging business in combination with the production and operation plan, make full use of the futures market functions and the perfect financial derivatives trading markets in Singapore and Hong Kong, China, to hedge, reduce production and operation risks, and improve the business level of the company, Ensure the healthy and continuous operation of the enterprise.

2. Transaction amount

The total margin balance at any time point during the investment period (including the relevant amount of reinvestment of the proceeds of the above investment, excluding the full amount of margin paid for the delivery of the current position) does not exceed 3.5 billion yuan (other currencies are converted into RMB at the current exchange rate).

3. Transaction mode

The Chairman of the Board of Directors of the Company shall organize and establish a leading group as the decision-making body for managing the commodity hedging business, which shall operate in accordance with the Management System for Derivatives Transactions and the relevant business rules and procedures formulated by the Company.

The company plans to carry out commodity hedging transactions matching the company's production and operation in China, Singapore and Hong Kong. The investment types are crude oil, naphtha, refined oil, paraxylene (PX), purified terephthalic acid (PTA), ethylene glycol (MEG), methanol, liquefied petroleum gas (LPG), styrene, pure benzene and other commodity trading contracts related to the industrial chain. The trading place and market of the trading varieties chosen by the investment are open and transparent, and the transactions are active and highly liquid.

4. Investment Term

The investment period is from the date of deliberation and approval of the 2023 annual general meeting of shareholders to the date of holding the 2024 annual general meeting of shareholders.

5. Source of funds

The source of funds used for investment this time is the company's own funds, which does not involve the use of raised funds or bank credit funds.

2、 Review procedure

On April 24, 2024, the Company held the 14th meeting of the 9th Board of Directors, deliberated and unanimously adopted the Proposal on Developing Commodity Hedging Business. According to the production and operation plan, based on the principle of prudence, it is expected that the company and its holding subsidiaries will carry out commodity hedging business in 2024, and the margin balance at any time point in the investment period (including the relevant amount of reinvestment of the proceeds of the above investment, excluding the full amount of margin paid for the delivery of current positions) The total amount shall not exceed 3.5 billion yuan (other currencies shall be converted into RMB at the current exchange rate). The investment period is from the date of deliberation and approval of the 2023 annual general meeting of shareholders to the date of holding the 2024 annual general meeting of shareholders.

This matter needs to be submitted to the General Meeting of Shareholders for deliberation. This matter does not involve connected transactions.

3、 Investment risk analysis and risk control measures

1. Investment risk analysis

The investment variety of the Company's commodity hedging business is limited to the products related to the Company's production and operation or the raw materials needed to avoid the adverse impact of price fluctuations on the Company's operation and reduce the operational risk. The company has fully considered the factors such as settlement convenience, transaction liquidity, exchange rate volatility and the political, economic and legal risks of transactions in relevant countries and regions, but at the same time there will be certain risks in transactions. The main risks are as follows:

(1) Market risk: When the market changes rapidly, the company may not be able to fully lock the price of crude oil or products, resulting in losses.

(2) Liquidity risk: The company formulates relevant business rules and procedures, and issues operating instructions within the specified authority. If the market volatility is too large, it may lead to actual losses caused by forced closing positions due to lack of time to replenish margin.

(3) Operational risk: because futures and forward transactions are highly professional and complex, there may be accidental losses due to defects in the information system or internal control.

(4) Credit risk: When the price fluctuates significantly against the counterparty, the counterparty may violate the relevant provisions of the contract, cancel the contract, and cause losses to the company.

(5) Legal risk: The contract may not be executed normally due to the change of relevant legal system or the counterparty's violation of relevant legal system, which may cause losses to the company.

2. Risk control measures

(1) Carry out commodity hedging business to avoid commodity price risk, match the hedging business with the company's business, and hedge the risk of fluctuations in the prices of raw materials and products.

(2) Formulate and strictly implement relevant business rules and processes, and control risks by implementing authorization, post containment, internal audit and other measures.

(3) Set up qualified computer systems and related facilities to ensure the normal development of transactions. In case of failure, corresponding measures shall be taken in time to reduce losses.

(4) Strengthen professional ethics education and business training, improve the comprehensive quality of relevant personnel, and form efficient risk handling procedures.

4、 Impact on the company and related accounting treatment

The purpose of the Company's commodity hedging business is to achieve steady operation, improve the Company's ability to withstand the risk of market price fluctuations, not adversely affect the Company's financial and operating conditions, and meet the interests of the Company and all shareholders.

The Company will, in accordance with the relevant provisions and guidelines of the Ministry of Finance, such as Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No. 24 - Hedge Accounting, Accounting Standards for Business Enterprises No. 37 - Presentation of Financial Instruments, carry out corresponding accounting treatment for hedging business and reflect relevant items in the financial statements.

5、 Documents for future reference

1. Resolutions of the 14th Meeting of the 9th Board of Directors of the Company.

It is hereby announced.

Jiangsu Dongfang Shenghong Co., Ltd

Board of Directors

April 25, 2024

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-028

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond

Jiangsu Dongfang Shenghong Co., Ltd

Announcement on Provision for Asset Impairment in 2023

Jiangsu Dongfang Shenghong Co., Ltd. (hereinafter referred to as "the Company") held the 14th meeting of the 9th Board of Directors and the 10th meeting of the 9th Board of Supervisors on April 24, 2024, at which the Proposal on Provision for Asset Impairment in 2023 was reviewed and approved. This proposal does not need to be submitted to the General Meeting of Shareholders for deliberation in accordance with the Self regulatory Guidelines for Listed Companies of Shenzhen Stock Exchange No. 1 - Business Handling, the Articles of Association, the Company's Internal Control System for Accruing Provision for Asset Impairment and Loss Handling and other relevant provisions. The details are announced as follows:

1、 Overview of provision for asset impairment this time

According to the relevant provisions of the Accounting Standards for Business Enterprises and the company's accounting policies, in order to objectively and fairly reflect the company's asset value, financial status and operating results, the company has conducted a comprehensive inspection and impairment test on all kinds of assets as of December 31, 2023, fully analyzed and evaluated the signs of impairment of relevant asset values, and based on the test results, The Company makes provision for impairment of assets that may have signs of impairment. The Company's provision for impairment of various assets in 2023 is 2225010900 yuan in total. The details are as follows:

Unit: 10000 yuan

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Note: The reporting period from January 1, 2023 to December 31, 2023 during which the provision for impairment is included is from January 1, 2023 to December 31, 2023.

2、 Detailed description of this provision for impairment

1. Receivables

According to the Accounting Standards for Business Enterprises and relevant accounting policies of the company, the company assessed the expected credit loss of accounts receivable as of December 31, 2023, and accrued 14.8122 million yuan of bad debt reserves in 2023.

2. Inventory

On the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the cost is higher than net realizable value, inventory falling price reserves are accrued.

The Company has carried out corresponding impairment test on the inventory as of December 31, 2023, and accrued inventory falling price reserves of 2210198700 yuan in 2023.

3、 The impact of the provision for impairment on the company's financial position

The Company's provision for impairment of various assets in 2023 will reduce the total profit of the Company's consolidated statements in 2023 by 2225010900 yuan. The provision for asset impairment this time complies with the Accounting Standards for Business Enterprises and the Company's relevant accounting policies. The amount of provision for asset impairment withdrawn this time has been audited by BDO China Shu Lun Pan Certified Public Accountants (special general partnership).

4、 Opinions of the Board of Directors

The provision for asset impairment of the Company this time complies with the requirements of the Accounting Standards for Business Enterprises and other relevant regulations, reflects the principle of accounting prudence, has sufficient basis for provision, and conforms to the actual situation of the Company. After the provision for impairment is made this time, it can more truly reflect the company's financial position and asset value, making the company's accounting information more reasonable.

5、 Special review opinions of the Board of Supervisors

After review, the Board of Supervisors believes that the procedures for the Board of Directors to review the provision for asset impairment are in accordance with laws, regulations, the Articles of Association and other provisions; The provision items comply with the relevant requirements of the Accounting Standards for Business Enterprises and the actual situation of the company, and can more fairly reflect the company's asset status and operating results after the provision.

6、 Documents for future reference

1. Resolutions of the 14th Meeting of the 9th Board of Directors of the Company;

2. Resolutions of the 10th Meeting of the 9th Board of Supervisors of the Company.

It is hereby announced.

Jiangsu Dongfang Shenghong Co., Ltd

Board of Directors

April 25, 2024

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-026

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond

Jiangsu Dongfang Shenghong Co., Ltd

About the use of temporarily idle self owned funds

Announcement on purchase of wealth management products

Important tips:

1. Investment type: financial products of financial institutions such as fixed income banks or low-risk banks.

2. Investment amount: The total transaction amount at any time point during the investment period shall not exceed 2.7 billion yuan.

3. Special risk tip: The company's purchase of financial products of fixed income or low-risk banks and other financial institutions is a low-risk investment product, but the financial market is affected by the macro-economy, which does not exclude that the investment is affected by market fluctuations, and the actual income of financial products is unpredictable. Remind investors to pay full attention to investment risks.

1、 Overview of investment

1. Investment purpose

In order to make rational use of temporarily idle funds, improve the efficiency of fund use, and reduce financial costs, the company and its holding subsidiaries plan to carry out entrusted financing based on the business plan and fund use, and on the basis of ensuring the liquidity and safety of funds.

2. Investment amount

The total transaction amount at any time point during the investment period shall not exceed 2.7 billion yuan.

3. Investment mode

The financial department of the company is responsible for the specific implementation of relevant matters.

4. Investment Term

According to the company's capital arrangement, it is determined to purchase financial products at the right time, with the investment period ending on April 30, 2025.

5. Source of funds

The source of funds used for investment this time is the company's own funds, which does not involve the use of raised funds.

2、 Review procedure

On April 24, 2024, the Company held the 14th meeting of the 9th Board of Directors, deliberated and unanimously adopted the Proposal on Using Temporarily Idle Own Funds to Purchase Financial Products. The Company and its holding subsidiaries use temporarily idle self owned funds to purchase fixed income or low-risk financial products of financial institutions such as banks. The total transaction amount at any point in the investment period does not exceed 2.7 billion yuan. The investment period expires on April 30, 2025.

According to the Listing Rules of Shenzhen Stock Exchange, the Articles of Association and the Company's Internal Control System for Entrusted Wealth Management, this transaction does not need to be submitted to the General Meeting of Shareholders for deliberation. This matter does not involve connected transactions.

3、 Investment risk analysis and risk control measures

1. Investment risk analysis

(1) The financial products of financial institutions such as fixed income banks or low-risk banks that the company plans to purchase are low-risk investments, but the financial market is affected by the macro-economy, which does not exclude the impact of market fluctuations on this investment.

(2) The Company will intervene in a timely and appropriate manner according to the capital arrangement, and at the same time pay attention to the economic situation and changes in the financial market, so the actual income of financial products is unpredictable.

2. Risk prevention measures

(1) Based on the principle of strict risk control, the company will evaluate and screen financial products and purchase financial products with high security, good liquidity and controllable risk.

(2) The financial department of the company will establish a standing book and arrange special personnel to timely analyze and track the orientation of financial products and project progress. If risk factors that may affect the company's capital security are found in the assessment, corresponding measures will be taken in time to control investment risks.

(3) The internal audit department of the company conducts daily supervision and regularly audits and verifies the use of funds.

4、 Impact of investment on the company

The company adheres to the principle of "standardized operation, risk prevention, prudent investment, value maintenance and appreciation", and uses temporary idle funds to carry out entrusted financial management business in a timely manner without affecting the normal operation, which will not affect the normal turnover of the company's daily funds and business development, and is conducive to improving the efficiency and income of fund use, which is in line with the interests of the company and all shareholders.

5、 Documents for future reference

1. Resolutions of the 14th Meeting of the 9th Board of Directors of the Company.

It is hereby announced.

Jiangsu Dongfang Shenghong Co., Ltd

Board of Directors

April 25, 2024

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-025

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond

Jiangsu Dongfang Shenghong Co., Ltd

About the proposed employment of the company in 2024

Announcement of financial audit institution and internal control audit institution

Jiangsu Dongfang Shenghong Co., Ltd. (hereinafter referred to as "the Company") intends to continue to employ BDO China Shu Lun Pan Certified Public Accountants (special general partnership) (hereinafter referred to as "BDO China Lun Lun Pan") as the financial audit institution and internal control audit institution in 2024, and authorizes the management of the Company to negotiate with BDO China Lun Lun Pan Certified Public Accountants according to the workload and market price of the audit institution. This matter needs to be submitted to the general meeting of shareholders for deliberation.

1、 Basic information of the proposed accounting firm

（1） Institutional information

1. Basic information

BDO Shu Lun Certified Public Accountants (Special General Partnership) was founded in Shanghai in 1927 by Dr. Pan Xulun, a leading accountant in China. It was reopened in 1986 and became the first special general partnership accounting firm in China to complete restructuring in 2010. Its registered address is Shanghai, and the chief partner is Mr. Zhu Jiandi. BDO is a member firm of BDO, an international accounting network, and has been engaged in securities service business for a long time. Before the implementation of the new securities law, BDO had a license for securities and futures business, qualified for H-share audit, and registered with the Public Company Accounting Oversight Board (PCAOB) of the United States.

By the end of 2023, BDO has 278 partners, 2533 certified public accountants, 10730 practitioners in total, and 693 certified public accountants who have signed audit reports on securities service business.

BDO's business income (unaudited) in 2023 was 4.614 billion yuan, including 3.408 billion yuan from audit business and 1.516 billion yuan from securities business.

In 2023, Lixin provided annual report audit services for 671 listed companies, with audit fees of 817 million yuan, and 45 audit clients of listed companies in the same industry.

2. Investor protection ability

By the end of 2023, Lixin had withdrawn 161 million yuan from the professional risk fund, and the accumulated compensation limit of the professional insurance purchased was 1.25 billion yuan. The relevant professional insurance can cover the civil liability for compensation caused by audit failure.

Civil liability in civil actions related to practice in recent three years:

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3. Integrity record

Lixin does not violate the independence requirements of the Code of Professional Ethics for Chinese Certified Public Accountants. In recent three years, Lixin has received no criminal punishment, 1 administrative punishment, 29 supervision and management measures, 1 self-discipline supervision measure and no disciplinary punishment due to its practice, involving 75 employees.

（2） Project Information

1. Basic information

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2. Employment in recent three years

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3. Independence and integrity records of project team members

The project partner, the signing CPA and the quality control reviewer did not violate the independence requirements of the Code of Professional Ethics for Chinese Certified Public Accountants. The above personnel have no bad records in the past three years.

2、 Audit fees

1. Pricing principle of audit fees

The pricing is mainly based on the responsibility of professional services and the degree of professional technology to be invested, taking into account the experience and level of the staff involved in the work, the corresponding charging rate, the working hours invested and other factors.

2. Year on year changes in audit fees

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The year-on-year increase of annual report audit fees is due to the increase of the Company's assets and revenue scale in 2023.

3. The Company plans to continue to employ BDO as the financial audit institution and internal control audit institution in 2024. The specific fees are authorized to be determined by the management of the Company through consultation with BDO according to the workload and market price of the audit institution.

3、 Procedures to be performed by the proposed reappointment accounting firm

1. Opinions of the Audit Committee of the Board of Directors

The Audit Committee of the Board of Directors of the Company has fully understood and reviewed the professional competence, investor protection ability, independence and integrity of BDO Lunxin Certified Public Accountants Co., Ltd. (special general partnership), and made a comprehensive assessment of its audit work and quality in 2023. It believes that BDO Lunxin has the experience and ability to provide audit services for listed companies, In the work of providing audit services to the company, they can follow the professional standards of independence, objectivity and impartiality, scrupulously perform their duties, diligently perform their relevant duties, and the audit conclusions conform to the actual situation of the company.

The Audit Committee of the Board of Directors agreed to renew the appointment of Lixin as the financial audit institution and internal control audit institution of the Company in 2024, and authorized the management of the Company to negotiate with Lixin on the specific fees based on the workload and market price of the audit institution.

2. On April 24, 2024, the Company held the 14th meeting of the 9th Board of Directors, which reviewed and unanimously adopted the Proposal on the Proposed Employment of the Company's Financial Audit Institution and Internal Control Audit Institution in 2024. The Company plans to continue to employ BDO as the financial audit institution and internal control audit institution in 2024. The specific fees are authorized to be determined by the management of the Company through consultation with BDO according to the workload and market price of the audit institution.

3. This appointment of accounting firm needs to be submitted to the General Meeting of Shareholders of the Company for deliberation, and will take effect from the date of deliberation and approval of the General Meeting of Shareholders of the Company.

4、 Documents for future reference

1. Resolutions of the 14th meeting of the 9th Board of Directors of the Company;

2. Resolutions of the Audit Committee of the Board of Directors of the Company;

3. Statement of BDO Shu Lun Pan Certified Public Accountants (special general partnership) on its basic information.

It is hereby announced.

Jiangsu Dongfang Shenghong Co., Ltd

Board of Directors

April 25, 2024

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-024

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond

Jiangsu Dongfang Shenghong Co., Ltd

Announcement on 2023 Profit Distribution Plan

Jiangsu Dongfang Shenghong Co., Ltd. (hereinafter referred to as "the Company") held the 14th meeting of the 9th Board of Directors and the 10th meeting of the 9th Board of Supervisors on April 24, 2024, deliberated and unanimously adopted the Proposal on 2023 Profit Distribution Plan. This proposal needs to be submitted to the General Meeting of Shareholders for deliberation. Relevant matters are hereby announced as follows:

1、 Specific contents of 2023 profit distribution plan

According to the audit of BDO China Shu Lun Pan Certified Public Accountants (special general partnership), the Company realized a net profit of 717031594.87 yuan attributable to shareholders of the listed company in 2023. As of December 31, 2023, the company's ending distributable profit (parent company caliber) is 1795470625.46 yuan.

After comprehensive consideration of the reasonable return of shareholders and the long-term development of the company, and on the premise of ensuring the funds required for the production and operation of the company, it is proposed to distribute cash dividends of RMB 1.00 (tax included) for every 10 shares to all shareholders in 2023 based on the total capital stock on the equity registration date when the future distribution plan is implemented, with no bonus shares.

As of March 31, 2024, the total share capital of the company is 6611214278 shares. According to this calculation, it is proposed to distribute cash bonus of 661121427.80 yuan (tax included). If the total share capital of the Company changes before the equity registration date of implementing this distribution plan, the Company will keep the distribution ratio per share unchanged and adjust the total distribution amount accordingly.

2、 Legality and compliance of profit distribution plan in 2023

This profit distribution plan is in line with relevant laws and regulations and the provisions of the Articles of Association and the Company's Three Year Shareholder Return Plan (2022-2024), which can guarantee the reasonable return of shareholders and give consideration to the sustainable development of the company.

3、 Risk warning

This profit distribution plan of the company can be implemented only after it is submitted to the 2023 annual general meeting of shareholders for deliberation and approval. Please pay attention to the investment risks.

4、 Documents for future reference

1. Resolutions of the 14th meeting of the 9th Board of Directors of the Company;

2. Resolutions of the 10th meeting of the 9th Board of Supervisors.

It is hereby announced.

Jiangsu Dongfang Shenghong Co., Ltd

Board of Directors

April 25, 2024

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-022

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond

Jiangsu Dongfang Shenghong Co., Ltd

Announcement on the Resolution of the 14th Meeting of the 9th Board of Directors

1、 Meeting of the Board of Directors

The 14th Meeting of the 9th Board of Directors of Jiangsu Dongfang Shenghong Co., Ltd. (hereinafter referred to as "the Company") sent a notice of the meeting in the form of personal delivery, fax or e-mail on April 14, 2024, and held it in the conference room on the fourth floor of the Company on April 24, 2024. The meeting of the Board of Directors was presided over by Mr. Miao Hangen, the chairman of the board of directors, and the supervisors and senior managers of the Company attended the meeting as nonvoting delegates.

The meeting of the Board of Directors was held in accordance with relevant laws, administrative regulations, departmental rules, normative documents and the Articles of Association.

2、 Deliberation of Board Meeting

1. Reviewed and passed the Work Report of the Company's General Manager in 2023

Voting results: 7 in favor, 0 against and 0 abstention.

2. Reviewed and passed the Work Report of the Board of Directors in 2023

Voting results: 7 in favor, 0 against and 0 abstention.

For details of the report, please refer to（ http://www.cninfo.com.cn ）Section III, IV and VI of the 2023 Annual Report disclosed above.

This proposal needs to be submitted to the General Meeting of Shareholders for deliberation.

3. Reviewed and passed the Report on the Company's Financial Statements in 2023

Voting results: 7 in favor, 0 against and 0 abstention.

After audit by BDO Shu Lun Pan Certified Public Accountants (special general partnership), it is believed that the financial statements of the Company are prepared in accordance with the Accounting Standards for Business Enterprises in all major aspects, and fairly reflect the financial status of the Company as of December 31, 2023 and the financial performance and cash flow of the Company in 2023, And issued a standard unqualified audit report for the company's 2023 annual financial report.

This report was reviewed and approved by the Audit Committee of the Ninth Board of Directors.

This report needs to be submitted to the general meeting of shareholders for deliberation.

4. Reviewed and passed the Summary Report on the Performance of Duties of the Audit Committee under the Board of Directors and the Audit Work in 2023

Voting results: 7 in favor, 0 against and 0 abstention.

This report was reviewed and approved by the Audit Committee of the Ninth Board of Directors.

The Summary Report on the Performance of the Audit Committee under the Board of Directors and the Audit Work in 2023 was also published on http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

5. Reviewed and passed the 2023 Internal Control Evaluation Report of the Company

Voting results: 7 in favor, 0 against and 0 abstention.

The Board of Directors believes that the Company has maintained effective internal control over financial reporting in all major aspects in accordance with the requirements of the normative system of enterprise internal control and relevant regulations.

This report was reviewed and approved by the Audit Committee of the Ninth Board of Directors.

The 2023 Internal Control Evaluation Report was also published on CNINFO（ http://www.cninfo.com.cn ）Disclosed on the.

6. The Company's 2023 Environmental, Social and Governance Report was reviewed and approved

Voting results: 7 in favor, 0 against and 0 abstention.

This report was reviewed and approved by the strategic committee meeting of the ninth board of directors of the company.

The 2023 Environmental, Social and Governance Report is also available on CNINFO（ http://www.cninfo.com.cn ）Disclosed on the.

7. The Proposal on the Remuneration of the Company's Senior Managers in 2023 was reviewed and passed

Voting results: 4 in favor, 0 against and 0 abstention. Mr. Miao Hangen, Mr. Ji Gaoxiong and Mr. Qiu Hairong, the directors who are also senior managers of the company, withdrew from the voting.

This report was reviewed and approved by the Remuneration and Assessment Committee of the Ninth Board of Directors.

8. Reviewed and passed the Full Text and Abstract of the Company's 2023 Annual Report

Voting results: 7 in favor, 0 against and 0 abstention.

This report was reviewed and approved by the Audit Committee of the Ninth Board of Directors.

This report needs to be submitted to the general meeting of shareholders for deliberation.

The full text of the company's 2023 annual report is also available on http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）It was disclosed on the website that the Summary of 2023 Annual Report (Announcement No.: 2024-021) was also published on the Securities Times, China Securities News, Shanghai Securities News and http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

9. The Proposal on Profit Distribution Plan for 2023 was reviewed and passed

Voting results: 7 in favor, 0 against and 0 abstention.

In 2023, it is proposed to distribute cash dividends of RMB 1.00 (tax included) for every 10 shares to all shareholders based on the total share capital on the equity registration date when the distribution plan is implemented in the future, with no bonus shares to be distributed. If the total share capital of the Company changes before the equity registration date of implementing this distribution plan, the Company will keep the distribution ratio per share unchanged and adjust the total distribution amount accordingly.

This proposal needs to be submitted to the General Meeting of Shareholders for deliberation.

The Announcement on the Profit Distribution Plan for 2023 (Announcement No.: 2024-024) was also published on the Securities Times, China Securities News, Shanghai Securities News and CNINFO（ http://www.cninfo.com.cn ）Disclosed on the.

10. The Proposal on the Proposed Employment of the Company's Financial Audit Institution and Internal Control Audit Institution in 2024 was reviewed and passed

Voting results: 7 in favor, 0 against and 0 abstention.

The Company plans to continue to employ BDO China Shu Lun Pan Certified Public Accountants LLP (special general partnership) as the financial audit institution and internal control audit institution in 2024, and authorizes the management of the Company to negotiate with BDO China Shu Lun Pan Certified Public Accountants LLP (special general partnership) to determine the specific fees based on the workload and market price of the audit institution.

This proposal was reviewed and approved by the Audit Committee of the 9th Board of Directors.

This proposal needs to be submitted to the General Meeting of Shareholders for deliberation.

The Announcement on the Proposed Employment of the Company's Financial Audit Institution and Internal Control Audit Institution in 2024 (Announcement No.: 2024-025) was also published on the Securities Times, China Securities News, Shanghai Securities News and http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

11. The Proposal on Using Temporarily Idle Own Funds to Purchase Wealth Management Products was reviewed and passed

Voting results: 7 in favor, 0 against and 0 abstention.

The Company and its holding subsidiaries use temporarily idle self owned funds to purchase fixed income or low-risk financial products of financial institutions such as banks. The total transaction amount at any point in the investment period does not exceed 2.7 billion yuan. The investment period expires on April 30, 2025.

Announcement on Using Temporarily Idle Own Funds to Purchase Wealth Management Products (Announcement No.: 2024-026) was also published in the Securities Times, China Securities News, Shanghai Securities News and http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

12. The Special Report on the Deposit and Use of Raised Funds of the Company in 2023 was reviewed and approved

Voting results: 7 in favor, 0 against and 0 abstention.

This report was reviewed and approved by the Audit Committee of the Ninth Board of Directors.

The Special Report on the Deposit and Use of Raised Funds in 2023 (Announcement No.: 2024-027) was also published in the Securities Times, China Securities News, Shanghai Securities News and http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

13. The Proposal on Accruing Asset Impairment Reserves in 2023 was reviewed and passed

Voting results: 7 in favor, 0 against and 0 abstention.

The Board of Directors believes that the provision for asset impairment of the Company this time conforms to the requirements of the Accounting Standards for Business Enterprises and other relevant regulations, reflects the principle of accounting prudence, has sufficient basis for provision, and conforms to the actual situation of the Company. After the provision for impairment is made this time, it can more truly reflect the company's financial position and asset value, making the company's accounting information more reasonable.

This proposal was reviewed and approved by the Audit Committee of the 9th Board of Directors.

Announcement on Accruing Provision for Asset Impairment in 2023 (Announcement No.: 2024-028) was also published in the Securities Times, China Securities News, Shanghai Securities News and http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

14. The Proposal on Developing Commodity Hedging Business was reviewed and passed

Voting results: 7 in favor, 0 against and 0 abstention.

According to the production and operation plan, based on the principle of prudence, it is expected that the company and its holding subsidiaries will carry out commodity hedging business in 2024, and the margin balance at any time point in the investment period (including the relevant amount of reinvestment of the proceeds of the above investment, excluding the full amount of margin paid for the delivery of current positions) The total amount shall not exceed 3.5 billion yuan (other currencies shall be converted into RMB at the current exchange rate). The investment period is from the date of deliberation and approval of the 2023 annual general meeting of shareholders to the date of holding the 2024 annual general meeting of shareholders.

This proposal was reviewed and approved by the Audit Committee of the 9th Board of Directors.

This proposal needs to be submitted to the General Meeting of Shareholders for deliberation.

Announcement on Conducting Commodity Hedging Business (Announcement No.: 2024-029) was also published on the Securities Times, China Securities News, Shanghai Securities News and CNINFO（ http://www.cninfo.com.cn ）Disclosed on the.

15. The Proposal on Developing Foreign Exchange and Interest Rate Derivatives Trading Business was reviewed and passed

Voting results: 7 in favor, 0 against and 0 abstention.

Based on the amount of foreign exchange business such as the company's commodity import and export business, foreign currency loans, and the business cycle of related businesses, it is estimated that the company and its holding subsidiaries will carry out foreign exchange and interest rate derivatives trading business in 2024, and the balance at any time point in the investment period (including the relevant amount of reinvestment of the income from the above investment) The total amount does not exceed 3.5 billion US dollars (other currencies are converted into US dollars at the current exchange rate). The investment period is from the date of deliberation and approval of the 2023 annual general meeting of shareholders to the date of holding the 2024 annual general meeting of shareholders.

This proposal was reviewed and approved by the Audit Committee of the 9th Board of Directors.

This proposal needs to be submitted to the General Meeting of Shareholders for deliberation.

The Announcement on Conducting Foreign Exchange and Interest Rate Derivatives Trading Business (Announcement No.: 2024-030) was also published on the Securities Times, China Securities News, Shanghai Securities News and CNINFO（ http://www.cninfo.com.cn ）Disclosed on the.

16. Deliberated and passed the Proposal on the Report of the Audit Committee of the Board of Directors on the Performance Evaluation Report and the Report on the Performance of Supervision Duties of Accounting Firms in 2023

Voting results: 7 in favor, 0 against and 0 abstention.

This proposal was reviewed and approved by the Audit Committee of the 9th Board of Directors.

The Report of the Audit Committee of the Board of Directors on the Assessment of the Performance of Duties and the Performance of Supervisory Duties of Accounting Firms in 2023 was also published on http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

17. The Proposal on the Special Report of the Board of Directors on Self inspection of Independent Directors' Independence was reviewed and passed

Voting results: 4 in favor, 0 against and 0 abstention. Mr. Xu Jinye, Mr. Yuan Jianxin and Mr. Ren Zhigang, independent directors, withdrew from this vote.

The Board of Directors prepared the Special Report of the Board of Directors on Independent Directors' Independence Self inspection based on the Independent Directors' Independence Self inspection Report submitted by three independent directors of the Company.

The Special Report of the Board of Directors on the Independent Directors' Independence Self inspection was also published on http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

18. The Proposal on Implementation of Performance Commitment and Impairment Test of 2023 for 2021 Share Issuance and Cash Purchase of Assets was reviewed and passed

Voting results: 6 in favor, 0 against and 0 abstention. Mr. Miao Hangen, an associated director, avoided this vote.

According to the Verification Report on the Realization of Performance Commitment in 2023 for Issuing Shares and Paying Cash to Purchase Assets in 2021 (EY (2024) ZZ No. 70066663_B01) issued by Ernst&Young Huaming Certified Public Accountants (special general partnership), As of December 31, 2023, the cumulative net profit of Jiangsu Sierbang Petrochemical Co., Ltd. under the consolidated statement caliber after deducting non recurring profit and loss that belongs to the owner of the parent company has reached the performance commitment. According to the provisions of the Profit Forecast Compensation Agreement and the Supplementary Agreement to the Profit Forecast Compensation Agreement, there is no need to compensate the company. As of December 31, 2023, the performance commitment period of Jiangsu Sierbang Petrochemical Co., Ltd. in this transaction has expired, and the performance commitments within the performance commitment period have been completed.

According to the Special Audit Report on Impairment Test (XKSBZ [2024] No. ZA11985) issued by Lixin Certified Public Accountants (special general partnership), as of December 31, 2023, the assessed value of all shareholders' equity of Jiangsu Sierbang Petrochemical Co., Ltd. was compared with the transaction price of the underlying assets of this major asset restructuring after considering the impact of profit distribution during the compensation period, No impairment occurred.

This proposal was reviewed and approved by the Audit Committee of the 9th Board of Directors.

Announcement on the Implementation of Performance Commitments and Impairment Test for 2023 by Issuing Shares and Paying Cash to Purchase Assets in 2021 (Announcement No. 2024-031)（ http://www.cninfo.com.cn ）Disclosed on the. The Assurance Report on the Realization of Performance Commitments in 2023 for 2021 Share Issuance and Cash Purchase of Assets and the Special Audit Report on Impairment Test are also available on http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

19. The Proposal on Revising the Internal Control System of Entrusted Wealth Management was reviewed and passed

Voting results: 7 in favor, 0 against and 0 abstention.

In order to strengthen and standardize the management of entrusted wealth management business of the company and its subsidiaries and holding subsidiaries, effectively control risks, improve investment returns, and safeguard the interests of the company and shareholders, in accordance with the Securities Law, the Shenzhen Stock Exchange Stock Listing Rules, the Shenzhen Stock Exchange Self regulatory Guidelines for Listed Companies No. 1 - Standard Operation of Main Board Listed Companies and the Articles of Association Revise the Internal Control System of Entrusted Wealth Management in combination with the actual situation of the company.

The Internal Control System of Entrusted Wealth Management (April 2024) is also available on http://www.cninfo.com.cn（ http://www.cninfo.com.cn ）Disclosed on the.

20. The Proposal on Convening the 2023 Annual General Meeting of Shareholders was reviewed and passed

Voting results: 7 in favor, 0 against and 0 abstention.

The Company decided to hold the 2023 Annual General Meeting of Shareholders at 14:00 p.m. on May 21, 2024 (Tuesday) in the Company's conference room by combining on-site voting and online voting.

The Notice on Convening the 2023 Annual General Meeting of Shareholders (Announcement No.: 2024-032) was also published on the Securities Times, China Securities News, Shanghai Securities News and CNINFO（ http://www.cninfo.com.cn ）Disclosed on the.

21. The Proposal on Shenghong Refining and Chemical Investment in the Construction of 1 Million Tons/Year Acetic Acid Project was reviewed and passed

Voting results: 7 in favor, 0 against and 0 abstention.

In order to meet the company's growing demand for acetic acid raw materials, further "strengthen the chain, extend the chain and supplement the chain", and give play to the leading role of large-scale refining and chemical integration projects, Shenghong Refining and Chemical (Lianyungang) Co., Ltd., a wholly-owned subsidiary of the company, plans to invest in the construction of the "1000000 t/a Acetic Acid Project" (hereinafter referred to as "the Project"). The total investment of the project is expected to be 3.852 billion yuan, with a construction period of 2 years.

The Announcement on Shenghong Refining and Chemical's Investment in the Construction of 1 Million Tons/Year Acetic Acid Project (Announcement No.: 2024-035) was also published in the Securities Times, China Securities News, Shanghai Securities News and CNINFO（ http://www.cninfo.com.cn ）Disclosed on the.

3、 Documents for future reference

1. Resolutions of the Board of Directors signed and sealed by the attending directors.

It is hereby announced.

Jiangsu Dongfang Shenghong Co., Ltd

Board of Directors

April 25, 2024

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-035

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond

Jiangsu Dongfang Shenghong Co., Ltd

About Shenghong Refining and Chemical Investment and Construction of 1 Million Tons/Year

Announcement of Acetic Acid Project

1、 Overview of foreign investment

1. Basic information of foreign investment

In order to meet the company's growing demand for acetic acid raw materials, further "strengthen the chain, extend the chain and supplement the chain", and play a leading role in large-scale refining and chemical integration projects, Shenghong Refining and Chemical (Lianyungang) Co., Ltd. (hereinafter referred to as "Shenghong Refining and Chemical"), a secondary wholly-owned subsidiary of Jiangsu Dongfang Shenghong Co., Ltd. (hereinafter referred to as "the company") It is proposed to invest in the construction of "1000000 t/a Acetic Acid Project" (hereinafter referred to as "the Project"). The total investment of the project is expected to be 3.852 billion yuan, with a construction period of 2 years.

2. On April 24, 2024, the company held the 14th meeting of the 9th Board of Directors, which reviewed and passed the Proposal on Shenghong Refining and Chemical's Investment in the Construction of 1 Million Tons/Year Acetic Acid Project.

3. According to the relevant provisions of the Shenzhen Stock Exchange Stock Listing Rules and the Articles of Association, this external investment does not need to be submitted to the general meeting of shareholders for deliberation.

4. This transaction does not constitute a connected transaction.

5. This transaction does not constitute a major asset restructuring as stipulated in the Administrative Measures for Major Asset Restructuring of Listed Companies, and does not need to be approved by the relevant departments.

2、 Introduction to foreign investors

1. Shenghong Refining&Chemical Co., Ltd. was established on July 23, 2014. Its legal representative is Bai Wei, its unified social credit code is 913207033983311165, its registered capital is 23545 million yuan, its type is limited liability company, its address is No. 59, Shihua Third Road, Xuwei New District, Lianyungang City, and its business scope is petroleum and chemical product sales; Research and development of petroleum and chemical products, coal chemical products, basic chemical raw materials, fine chemicals, and new chemical materials; Sales of chemical raw materials and products (excluding hazardous chemicals and precursor chemicals); Self operating and acting as an agent for the import and export of various commodities and technologies, except for commodities and technologies that are restricted or prohibited from import and export by the state (projects that need to be approved according to law can only be operated after being approved by relevant departments). Licensed project: dangerous chemicals business; Wholesale of refined oil (limited to hazardous chemicals); Retail of refined oil products (limited to hazardous chemicals); Filling of mobile pressure vessels/gas cylinders; Production of hazardous chemicals (projects that need to be approved according to law can only be operated after being approved by relevant departments, and the specific business items shall be subject to the approval results) General items: wholesale of refined oil (excluding hazardous chemicals); Production of chemical products (excluding licensed chemical products); Manufacturing of petroleum products (excluding hazardous chemicals); Sales of petroleum products (excluding hazardous chemicals); General cargo warehousing services (excluding hazardous chemicals and other items that need to be approved) (in addition to items that need to be approved according to law, independently carry out business activities according to law with the business license)

Major shareholder: Jiangsu Shenghong Petrochemical Industry Group Co., Ltd., a wholly-owned subsidiary of the Company, holds 100% of its equity.

2. Relationship with listed companies: Shenghong Refining&Chemical Co., Ltd. is a secondary wholly-owned subsidiary of the company.

3. Sheng Hong Lianhua is not a person who has broken his promise and been executed.

3、 Basic information of the investment project

1. Project name: 1000000 t/a Acetic Acid Project of Shenghong Refining and Chemical (Lianyungang) Co., Ltd

2. Implementation entity and address: Shenghong Refining and Chemical (Lianyungang) Co., Ltd. is responsible for the implementation of this project as the investor. The project is located in the plant area of Shenghong Refining Chemical Integration Project, with a land area of 60 mu.

3. Project construction content and scale: Phase I will build new PSA unit, supporting compressor system, substation, control room and other public and auxiliary facilities. After completion, 300000 Nm3/h of hydrogen can be achieved. Phase II: reconstruction of new low-temperature methanol washing unit, cryogenic separation unit, acetic acid unit and supporting circulating water station, initial rainwater collection tank, foam station, substation, control room, raw material/product storage tank and other supporting works. Other auxiliary facilities rely on the existing plant area.

4. Project investment amount: The total investment of the project is expected to be 3.852 billion yuan.

5. Source of funds: self raised funds, bank loans, etc.

6. Project progress: The construction period of the project is expected to be 2 years, and it is currently under preliminary approval.

7. Other notes: This overseas investment does not involve entering new fields.

4、 Main contents of foreign investment contract

This overseas investment is an investment project of Shenghong Refining&Chemical, a wholly-owned subsidiary of the Company. Shenghong Refining&Chemical will sign contracts for relevant engineering projects and equipment procurement according to the application for approval and construction progress of this project.

5、 Purpose, risks and impact on the company of foreign investment

1. Purpose of foreign investment

The acetic acid produced in this project can not only provide raw materials for the Company's existing vinyl acetate plant and PTA plant, but also create economic benefits. The construction of this project is in line with the development requirements of the Action Plan for Xuwei New Area to Build a World class Petrochemical Industrial Base and Build a Trillion level Industrial Cluster, and the Development Plan for Jiangsu Coastal Areas (2021-2025).

2. Existing risks

During the construction and future actual operation of the project, it may face uncertainties in industrial policies, economic environment, changes in market demand, business management and other aspects. There are certain market risks, operational risks, and risks of failing to reach the original plan and forecast objectives. The project investment plan may be adjusted according to the actual situation in the future. The project still needs to be approved or filed by the relevant competent government departments, and there is a risk of failure to pass the approval or filing. The investment amount, construction period and other values involved in the project are estimated, and the project construction content and implementation progress are preliminary plans. There are uncertainties, and the actual implementation of the company in the future shall prevail.

The company will actively promote project construction, select mature and reliable process routes and devices, reasonably arrange the project plan, ensure that the project is advanced according to the nodes, and ensure that the project construction investment is implemented; Pay close attention to changes in macroeconomic and industrial conditions, and improve sustainable development ability, anti risk ability and subsequent development potential.

3. Impact on the company

The investment in this project is in line with the company's development plan, which not only complements the company's industrial chain, but also optimizes the cost of raw materials, improves the utilization rate of devices and market adaptability, increases the company's overall efficiency, provides guarantee for the company's sustainable, healthy, rapid and high-quality development, and is in line with the interests of the company and all shareholders.

According to the estimation of the feasibility study report, the project can achieve an annual sales revenue of 7.52 billion yuan and an annual total profit of 464 million yuan. When the project reaches its capacity, it will play a positive role in the company's business performance.

6、 Documents for future reference

1. Resolutions of the 14th Meeting of the 9th Board of Directors of the Company.

It is hereby announced.

Jiangsu Dongfang Shenghong Co., Ltd

Board of Directors

April 25, 2024

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-034

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond

Jiangsu Dongfang Shenghong Co., Ltd

About holding 2023

Announcement of online performance briefing

The 2023 Annual Report and Abstract of Jiangsu Dongfang Shenghong Co., Ltd. (hereinafter referred to as "the Company") was published on http://www.cninfo.com.cn on April 26, 2024（ http://www.cninfo.com.cn ）Disclosed on the. In order to facilitate investors to have a more in-depth and comprehensive understanding of the company, the company decided to hold the 2023 annual performance briefing on May 7, 2024.

1、 Explain the time, place and method of the meeting

Time of the meeting: 15:00-16:00 p.m., May 7, 2024 (Tuesday)

Venue: Value Online（ https://www.ir-online.com.cn/ ）

Meeting mode: network interaction

2、 Attendance

The attendees of this online performance presentation meeting were: Mr. Miao Hangen, the chairman and general manager of the company, Mr. Ren Zhigang, the independent director, Mr. Qiu Hairong, the director, deputy general manager and financial officer, and Mr. Wang Jun, the deputy general manager and secretary of the board of directors, who will communicate with investors online.

Stock code: 000301 Stock abbreviation: Dongfang Shenghong Announcement No.: 2024-021

Bond code: 127030 Bond abbreviation: Shenghong Convertible Bond