Announcement of Hengyi Petrochemical about Brunei PMB Petrochemical Project

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

Hengyi Petrochemical Co., Ltd. (hereinafter referred to as "Company") Holding subsidiary Hengyi Industry (Brunei) Co., Ltd. (hereinafter referred to as "Hengyi Brunei") in Brunei Darussalam Damora Island (Pulau Muara Besar) investment and construction of the "PMB Petrochemical Project" (hereinafter referred to as "Project") has been completed. Construction, installation and commissioning of equipment and other work, the company completed the public works in March 2019 and put into operation in July, the main device of the project to achieve full-scale interchange. At present, all the devices have been transferred to the linkage test stage, and are expected to enter the commercial operation stage soon. The crude oil processing capacity of Brunei PMB petrochemical project is 8 million tons per year, including annual production of 1.5 million tons of aromatics, 500,000 tons of benzene and nearly 6 million tons of gasoline, diesel and kerosene products. This project is of great strategic significance for the company's overseas construction. Adhering to the concept of "safety first", the company carries out strict quality and safety control over the project, implements three-level HSE safety management model and grid management, implements safety production responsibility system, and establishes a sound project quality management system. Continuous improvement and optimization. After the project is put into operation, the company's petrochemical industry chain will further extend to the upstream, effectively break through the bottleneck of raw materials, open the "last kilometer" of the whole Petrochemical Fiber Industry chain, realize the strategic layout of "industrial chain integration", and greatly improve the existing raw material supply pattern of PTA-polyester industry chain. Understand the market risk of raw material supply, and further strengthen and consolidate the core competitiveness of the main business. At the same time, the project will realize the internationalization of the upstream industry, complete the coordinated allocation of the company's assets both at home and abroad, significantly improve the overall profitability and risk resistance ability, truly realize the company's strategic goal of "one drop of oil, two silks", gradually form a good pattern of international linkage and coordinated development from top to bottom, and help the public. The company has become a leading petrochemical enterprise with global comprehensive strength.

The management of the company and all the staff of Hengyi Brunei will drive steadily according to the principle of safety, environmental protection and compliance, and debug carefully in the process of production and operation to ensure the smooth commissioning of the project.