2023 kicked off the comprehensive implementation of the spirit of the 20th National Congress of the Communist Party of China, and it's also the year of economic recovery and development after the smooth transition in COVID response phase. The domestic economy continued to recover, and the overall recovery showed an upward trend. However, the world economic recovery continued to be under pressure, the international crude oil price underwent significant turbulence, the consumption in the chemical market was sluggish, and there were still many uncertain and unpredictable factors. Facing opportunities and challenges, SPC took the initiative to seize the opportunity of market recovery, adhered to the development concept of "shifting the focus from oil refining to chemicals, chemicals to materials, materials to high-end ones, and petrochemical park to eco-friendly park ", promoted control of safety and environmental protection, creation of benefit in production and operation, and construction of key projects, etc. in an orderly manner, and boosted new progress in various undertakings while upholding integrity and innovation.
We persisted in integrating ESG into development strategy and production & operation. We established the Strategy and ESG Committee of the Board to promote SPC's ESG construction from a strategic perspective, and fully integrated the core concepts and standards of ESG into the corporate development strategy and routine production & operation management. We deepened ESG practice, carried out the reform deepening and improvement actions, value creation actions by benchmarking first-class enterprises and various activities for quality improvement of the listed company, continuously improved the modernization of corporate governance system and governance capacity, and comprehensively guaranteed the high-quality sustainable development of the Company. SPC was awarded AA grade ESG rating of Chinese listed companies in 2022 (released by China Xinhua News Network Corp.).
We persisted in improving the intrinsic safety more comprehensively. Facing the severe and complicated situation of work safety, we stuck to overall development and safety, adhered to paying equal attention to development and safety, highlighted strict management and shouldered all responsibilities earnestly, took strengthening institutional system construction as an important fulcrum to consolidate the management foundation, profoundly carried out the annual action of strengthening safety management, vigorously promoted the grid of grass-roots safety management, strengthened emergency management, focused on safety assessment of production units as well as intermediate inspection and rectifications, and enhanced process safety control. We adhered to strengthening risk prevention, intensified the performance of duties for major hazard sources, strictly implemented the dual prevention mechanism of safety risk classification control and hidden hazard investigation and governance, profoundly carried out centralized governance of safety risks of hazardous chemicals, completed hidden hazard rectifications such as special governance, comprehensively improved the intrinsic safety, and resolutely reversed the passive situation of work safety.
We persisted in fur ther promoting the harmonious coexistence between human being and nature. SPC deepened the construction of green enterprise, continued to meet the challenge of pollution prevention and control, and protected our clear water, blue sky and pure land with great efforts. We strengthened fundamental management, strictly implemented the requirements for water pollution prevention and control, and conducted leakage detection and repair (LDAR), online monitoring and traceability on a regular basis; enhanced source control, vigorously carried out in-depth treatment of tank waste gas and VOCs, and implemented the revamp project for improvement of clean water and sewage separation. As a result, the discharge of major pollutants dropped significantly, the regional environmental quality continuously improved, and the satisfaction of surrounding residents significantly rose. We adhered to long-term ecological monitoring, strived to protect biodiversity, and make positive contributions to building a community of life on earth.
We persisted in adequately releasing the kinetic energy of innovation driven development. SPC adhered to the combination of independent innovation and collaborative innovation, strengthened the integration of internal and external resources, and strived to create more major original achievements. We made every effort to strengthen and optimize the advanced material industry with carbon fiber as the core, and completed the construction of 48K large tow carbon fiber project (Phase I) and the 100-ton high-performance carbon fiber project and produced on-spec. products; Completed the construction of pilot test plant for commercial production of aeronautical composite materials, and manufactured large-size plates for the first time in the pilot test line of thermoplastic plates; Large tow carbon fiber was successfully applied to air-supported membrane structure network cable system and the longest wind turbine blade in the world; The Carbon Fiber Winter Olympic Torch Project won the 23rd China International Industry Fair Award; SPC presided over the drafting and release of the first large tow carbon fiber product standard in China; The innovation research institute was approved by CNAS. SPC positively promoted digital transformation, and basically completed the construction of smart plant with integrated production control, integrated supply chain optimization and equipment integrity as the main line.
We persisted in making more comprehensive contributions to dealing with climate change. We achieved a good combination of cogeneration, photovoltaic power generation and carbon capture and utilization to facilitate hitting the "dual carbon target". We started the construction of clean and efficient cogeneration units, and the energy efficiency will be increased from the current 60% to 87.8% after completion of construction. Cumulatively four photovoltaic power generation units were put into operation, with a total installed capacity of 16 MW, an average annual power generation of 18.86 million kWh and an annual reduction of carbon dioxide emission of more than 10, 000 tons. Green electricity transaction was conducted for the first time, with a total purchase of 45.99 million kWh throughout the year. Waste carbon dioxide was captured and processed into food-grade carbon dioxide, which achieved both economic and environmental benefits.
We persisted in fulfilling our economic and social responsibilities more extensively. SPC spared no efforts to guarantee the supply of oil products, and produced a total of 8.6666 million tons of refined oil products. Motor gasoline was delivered according to the national VI B standards; We completed the construction of Jinhong jet fuel pipeline and put it into operation, and continuously improved the jet fuel output, which effectively guaranteed the jet fuel resources of target airports in East China. We went all out to ensure the power supply in summer peak, and made positive contributions to the power supply of East China Power Grid while ensuring the production in SPC. We accurately implemented 190 projects benefiting the masses and improved the well-being of employees. SPC continued to promote middle school education poverty alleviation in Baingoin County, Tibet, and cooperated in consumption assistance, and won the "Outstanding Contribution Award for Counterpart Consumption Assistance in 2022". We positively participated in public welfare actions, and SPC's "Babysbreath" volunteer service team was elected as the "Four 100" Best Volunteer Service Organization for National Learning Lei Feng's Volunteer Service in 2022. We continued to carry out "Public Open Day" activities and deepened the construction of harmonious relationship between enterprises and local government.
2024 is the 75th anniversary of the founding of the People's Republic of China, and a crucial year for implementing the objective-tasks of the 14th Five-Year Plan. Therefore, it is of great significance to implement various tasks in place. SPC will adhere to " challenging the advanced level and benchmarking the most stringent standard", consistently make overall plans for development and safety, accelerate the creation of a new situation in high-quality development, safeguard the legitimate rights and interests of investors with heart and soul, and open a new chapter in building a "domestic leading and world-class" energy, chemical and new materials company with a more energetic spirit and firmer and stronger pace!