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CPDC Investor Presentation 2025
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中國石油化學工業開發股份有限公司
China Petrochemical Development Corporation
Investor Conference
Respect · Innovation · Care · Excellence · Green Business
2025/4/11
Disclaimer
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This presentation is for informational purposes only, contains preliminary financial and other information about China Petrochemical Development Corporation and is subject to updating, revision, amendment and completion. This presentation does not and is not intended to constitute or contain any offer of securities for sale or a solicitation of an offer to purchase any securities of China Petrochemical Development Corporation or any other company and neither this presentation nor anything contained herein shall form the basis of any contract or commitment.
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Certain statements contained in this presentation may be statements of future expectations and other forward-looking statements or trend information that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the forward-looking statements in this presentation. In addition to statements which are forward looking by reason of context, including without limitation, statements referring to risk limitations, operational profitability, financial strength, performance targets, profitable growth opportunities, and risk adequate pricing, the words "will, should, expects, plans, intends, anticipates, believes, estimates, predicts, or continue", "future, or further", and similar expressions are intended to identify forward looking statements.
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China Petrochemical Development Corporation assumes no obligation to update or revise any such statements or any other information contained herein to reflect events or circumstances that may arise after the date of this presentation.
2
中石化公司
I. Industry and Market Overview
II. Operational Performance
III. Major Projects and Progress
IV. Transformation Strategy and ESG Action
中國石油化學工業開發股份有限公司
China Petrochemical Development Corporation
Industry and Market Overview
Respect · Innovation · Care · Excellence · Green Business
Transform the Petrochemical Industry
Expand new business in Land Development
Main Products CPL & PA6
【2025 YTD】
US/MT
2,500 —CPL Asia —PA6 Asia
By 2026, the total CPL production capacity in mainland China will exceed the global demand, while the PA6 production capacity had already surpassed global demand as early as 2024. Nevertheless, new capacity continues to be added through 2026(f).
2,000
1,500
1,000
$2023
Industry peers continued capacity expansion, inflation and rising interests weaken downstream demand.
【2024】
The production capacity in mainland China continues to increase, while the retail markets in Europe and the United States face economic downturns, leading to continued weak demand in downstream sectors.
The overall CPL industry chain is experiencing an oversupply, leading to intense competition. Customers are primarily adopting cautious production operations.
Note: The dotted line represents the estimates
2023 Q1
Q2
Q3
Q4
2024 Q1
Q2
Q3
Q4
2025 Q1
Q2
Source:
journal
中石化公司
Main Products AN【2025 YTD】
- Starting in 2022, China has been expanding its production capacity year by year, disrupting the previously relatively balanced supply and demand for AN. In the first half of 2025, an additional 790,000 tons of new capacity is expected to come online, further exacerbating the oversupply situation.
- In the second half of 2025, supply is expected to remain ample, and operating rates are projected to fall below 2024 levels. Meanwhile, the real estate market in mainland China has yet to show clear signs of recovery, downstream demand remains weak, and prices are expected to stay flat.
Source: journal
中石化公司
Trends on Major Raw material
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2023 Q1
2023 Q1
Q2
Q3
Q4
2024 Q1
Q2
Q3
Q4
2025 Q1
2025 Q2
中石化公司
[2025YTD]
- Propylene: The trend of oversupply remains unchanged, and prices are expected to remain flat with a slight downward bias.
- NH3: Supply in the Asian region is relatively tight, while supply outside of Asia is increasing, causing prices to weaken.
- Benzene: Due to weak downstream market conditions and poor pricing, the operating rate of light cracking plants is low, resulting in tight supply. It is anticipated that benzene prices will remain comparable to those in 2024.
- Phenol: Given the lackluster demand in mainland China and the introduction of new capacity, phenol prices are expected to maintain a weak trend.
[2023]
Rising natural gas price weakened the downstream demand of value chain.
[2024]
The overall prices remain stable. Benzene prices have increased, while crude oil prices have experienced a slight decline.
Note: The dotted line represents the estimates
中國石油化學工業開發股份有限公司
China Petrochemical Development Corporation
2024 Operational Performance
Respect · Innovation · Care · Excellence · Green Business
Transform the Petrochemical Industry
Expand new business in Land Development
Note: The expression of financial information is
mainly based on the consolidated financial statement.
Production & Sales (2022 ~ 2024)
2024
- AN: Inflationary pressures have eased, demand has slightly recovered, and the development of new customers has led to a year-over-year increase in production and sales.
- CPL & PA6: The interest rate cuts in various countries have driven a moderate recovery in the manufacturing sector, leading to demand growth. The increased utilization rate of the subsidiary in mainland China has contributed to a year-over-year rise in sales volume.
Units : 10,000 tons
Units : 10,000 tons
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中石化公司
Note: The mainland China subsidiary produces and markets PA6 since 2021.
Scheduled maintenance plan & capacity utilization
Douliou (PA6) Utilization Rate
Douliou (PA6)
B: Sep-Oct (about 42 days)
Siaogang (CPL) Utilization Rate
Siaogang (CPL)
Dec (about 15 days)
Dashe (AN) Utilization Rate
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中石化公司
Note1 : The capacity utilization rate in Q4 2024 declined due to scheduled maintenance and the impact of the typhoon.
Note2 : Future plan for the Qiaotou Facility: As current operations have fallen short of projected returns, product sales and manufacturing have been outsourced. A comprehensive plan is being formulated to optimize and repurpose the facility's assets.
Revenue Mix
2024
Demand for CPL and AN has picked up, leading to an increase in production utilization.
【2024 Revenue Mix】
【Change in Revenues from past 2 years】
| Units: NTD100 million | 2023 | 2024 | % Chg |
|---|---|---|---|
| CPL | 45 | 60 | 35% |
| PA6 | 41 | 37 | -8% |
| AN | 75 | 81 | 9% |
| OPP | 2 | 3 | 43% |
| Weiming | 73 | 93 | 27% |
| Subsidiary & Others (ex. Weiming) | 19 | 20 | 1% |
| Total | 254 | 294 | 16% |
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中石化公司
Quarterly Financials
- In 2023, profits were impacted by the expansion of capacity in mainland China, interest rate hikes, and inflation.
- In the first half of 2024, cost improvements led to better profitability (reduced losses), while in the second half, weak downstream demand is expected to affect both price and volume, impacting profitability.
Note: Operating losses narrowed in 1H 2024. Furthermore, non-operating gains from land disposals in Q1, Q2, and Q4 resulted in a positive pre-tax profit for the full year.
中石化公司
Condensed P&L
- In 2023, the industry will suffer severe operating losses, CPL and PA6 of Tofen Plant will be decommissioned, and the industry will move towards upgrading and transformation.
- In 2024, operating losses improved, and gains from asset disposals contributed to a net profit after tax.
| Units: NT$100 millions | 2022 | 2023 | 2024 | YOY | % |
|---|---|---|---|---|---|
| Operating Revenue | 250 | 254.4 | 294.4 | 40.0 | 16% |
| Gross Profit | -12 | -11.3 | 2.0 | 13.3 | 118% |
| Operating Income | -38 | -29.1 | -19.1 | 10.1 | 35% |
| Non-operating Income and Expenses | 46 | 25.2 | 26.1 | 0.9 | 4% |
| Profit Before Tax | 7 | -3.9 | 7.0 | 11.0 | 279% |
| Net Profit After Tax | 2 | -10.8 | 2.2 | 13.0 | 120% |
| EPS | 0.06 | -0.28 | 0.07 | 0.35 | 125% |
Note: 2024 non-operating income increases primarily attributed to gain from land disposals, revaluation of investment properties and profits from equity method investments.
中石化公司
Net Profits (loss) 2023 vs. 2024 Difference analysis
Unit: NT$ 100 millions
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中石化公司
Balance Sheet
2024
- The decrease in total liabilities was mainly due to land disposals, and year-end repayment of bank borrowings.
| Units: NT$100millions | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Assets | 1,411 | 1,457 | 1,421 |
| Current Assets | 646 | 666 | 679 |
| Non-current Assets | 765 | 791 | 741 |
| Total Liabilities | 616 | 669 | 625 |
| Current Liabilities | 254 | 302 | 340 |
| Non-current liabilities | 362 | 367 | 285 |
| Total Equity | 795 | 788 | 796 |
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中石化公司
Selected Ratios
| 2023 | 2023H1 | 2024H1 | Explanation | |
|---|---|---|---|---|
| Debt Ratio | 44.00% | 45.94% | 44.00% | |
| Current Ratio | 254.66% | 220.27% | 199.65% | The current ratio declined as long-term borrowings were reclassified to current liabilities due to their maturity within one year. |
| Net Profit Margin | 0.82% | -4.09% | 0.75% | |
| ROA (%) (Note) | 0.58% | -0.36% | 0.60% | |
| ROE (%) (Note) | 0.43% | -1.37% | 0.29% |
16
Note: Excluding investment property in the ratio calculation.
Excluding capital gains from FMV valuation on investment property in special reserves.
中石化公司
中國石油化學工業開發股份有限公司
China Petrochemical Development Corporation
Major Projects and Progress
Respect · Innovation · Care · Excellence · Green Business
Transform the Petrochemical Industry
Expand new business in Land Development
Project Progress_Kaohsiung Intercontinental Terminal
- NT$3.2 billion total investment in 3 phases. Storage tank items: liquid ammonia (30,000 tons), AN, phenol
- License application documents are being prepared alongside construction; trial operations will begin after application submission.
Phase 1 & Phase 2: completed & in operation
Phase 3: Expected to be operational in 2025H2
Phase 1
- Phenol Storage Tank
- Liquid Ammonia Refrigerated Tank
Phase 2
- AN Storage Tank
- Cyclohexanone Storage Tank
Phase 3
- AN Storage Tank
- MMA Tank
- Phenol Storage Tank
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中石化公司
Other Projects Progress
Fine Chemicals
- The original plan was to build in two phases. However, due to market conditions and construction costs, the Board of Directors approved the suspension of the second phase of the fine-tuning factory construction on June 25, 2024.
- Due to issues related to costs, market demand, and patents, it has been evaluated that there is currently no production demand for the three products in the first phase. The Company is now focusing on planning for other new products, including those in the fields of new energy, communications, and hydrogenation OEM products.
Weiming Petrochemical
- RMB 6.8 billion total investment in 2 phases.
- Phase 1 - Cyclohexanone (Phenol Process) and PA6 have officially commenced operations. Since H2 2023, they have made significant contributions to revenue, and has contributed to both revenue and profitability in 2024.
- Phase 2 - Cyclohexanone (Hydration Process), CPL, OPP: The project was approved in September 2023, and is currently undergoing the five-review approval process. Production is expected to start in 2027. Discussions with strategic investors are ongoing.
Tainan Anshun Land Remediation
- The remediation activities are being carried out in accordance with the approved "Fourth Amendment of the Pollution Remediation Plan."
- A total of 34.2 hectares (92.2% of the total remediation area) have been completed.
- To date, 667,000 tons of contaminated soil have been processed, with approximately 50,000 tons of soil remaining to be treated.
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中石化公司
Land Development_CPDC's Land Distribution
Note: In 2024, a total of 10,768.67 ping of land will be put up for auction in Nanzi and part of Qianzhen.
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中石化公司
21
Land Development_ Kaohsiung city_
Riding the high-tech investments wave to revitalize land assets
Part of the land in Qianzhen and Nanzi to be auctioned in 2024, totaling 10,768.67 ping.
Trade Zone 6
Qianzhen District, Kaohsiung
Housing three in Huimin Section,
Nanzi District, Kaohsiung
中石化公司
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中石化公司
Land Development_ Kaohsiung city _ Riding the high-tech investments wave to revitalize land assets
Status of Revenue from Land Tender Sales: 2024 to Present (2025)
| Tender Date | Transfer of Ownership (Revenue Recorded) Date | Disposed Land Lot | Estimated gains from disposal (Unit: NT$ 100 millions) |
|---|---|---|---|
| 2023/11 | 2024/01 | Land No. 1, Trade Zone 6, Qianzhen District | 19.97 |
| 2024/03 | 2024/06 | Land No. 1-1, Trade Zone 6, Qianzhen District | |
| 2024/08 | 2024/11 | Land No. 16 & 17, Huimin Section, Nanzih District |
Note: Land No. 2 and 2-1, Trade Zone 6 in Qianzhen District were transferred and revenue recorded in January 2025.
Land Development_Kaohsiung Qianzhen District Special Trade Zone 5A
Development through Leasing and Asset Activation
- The plan is to dispose of land in the Qianzhen District (Asian New Bay Area). The Board of Directors will be authorized at this year's Annual Shareholders' Meeting to sell the land in phases based on market conditions.
- In line with the government's "Asian New Bay Area" development initiative and the relocation of the 205 Armaments Factory, efforts will continue to promote leasing and regional development to enhance asset value.
- Fund utilization: for operational purposes, development of new businesses and products, investments, and debt repayment.
- Decathlon covers an area of 4,000 ping and the adjacent 5,300 ping parking lot has been put into operation.
- Continue to entrust Cushman & Wakefield to conduct land leasing and investment promotion while 3,000 ping meters are leased to United Recommend in 2024.
23
中石化公司
Land Development_Core Pacific Plaza
Progress on Land Seizure
- The Taiwan Taipei District Court has granted the third request for the seizure of the Core Pacific Plaza land. Core Pacific Development Corporation has filed an appeal.
- The Taiwan High Court has revoked the third criminal ruling of the Taiwan Taipei District Court and remanded the case back to the original court for reconsideration.
Syndicated Loan
- The supplemental agreement with the syndicated loan banking group has been signed in December 2024. Between December 2024 and January 2025, NT$4.5 billion was repaid ahead of schedule.
- The plan to reset the balance of the syndicated loan is currently under active negotiation with the syndicated loan bank group.
Design Changes
- Regarding the dispute over the 20% floor area ratio (FAR) bonus for this case, the Company has expressed to the Taipei City Government its decision to temporarily suspend construction activities related to the disputed portion of the FAR incentive in the building permit. The required adjustments and changes will be processed in compliance with applicable regulations.
- It is expected that the design changes will be processed by 2025Q2. The goal is to minimize any impact on the original development content, ensuring the continued construction and sale of the project.
中國石油化學工業開發股份有限公司
China Petrochemical Development Corporation
Transformation Strategy and ESG Performance
Respect · Innovation · Care · Excellence · Green Business
Transform the Petrochemical Industry
Expand new business in Land Development
Sustainability key actions
- The Dashe Plant, Siaogang Plant, and Intercontinental Container Terminal Storage and Transportation Facility have obtained ISCC Plus certification
- In 2024, 13 energy-saving and carbon-reduction items will be implemented, to reduce carbon emissions by approximately 73,558 metric tons of CO2e/year, save 720,000 kWh of electricity, and conserve 14,776 metric tons of water.
- The main production facilities have passed certifications for ISO 9001, ISO 14001, ISO 45001, ISO 46001, and ISO 50001, as well as verification under ISO 14064.
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Formulate the "Biodiversity and No Deforestation Declaration" and revise the "Occupational Safety and Health, Environmental Protection, Energy, Water Resources, Quality, Information Security Policy".
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Awarded the 2024 Sports Enterprise Certification by the Sports Administration, Ministry of Education.
- Certified as a Healthy Workplace by the Health Promotion Administration, Ministry of Health and Welfare (Douliou Plant, Toufen Plant, Taipei Office).
- The Dashe Plant established a Safety Partnership with the Kaohsiung City Labor Affairs Bureau to foster a corporate safety culture.
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Recipient of the 2024 Happy Enterprise Silver Award in the Manufacturing Industry category by 1111 Job Bank.
-
Elected nine directors in 2024, increasing the number of independent directors to four, including two female members, thereby enhancing board diversity and independence.
- Recognized for the fifth time in the S&P Dow Jones Sustainability Indices (DJSI) Global Sustainability Yearbook, as one of only two Taiwan chemical companies included.
- Participated in the International Carbon Disclosure Project "Water Security" and "Climate Change" programs for seven consecutive years, achieving a management level "B" rating in both categories.
- Honored in the Taiwan Corporate Sustainability Awards (TCSA) with the Outstanding Sustainable Enterprise Award, Gold Award in the Traditional Manufacturing – Category 1, and the Climate Leadership Award.
- Implementation of the ISO 27001 Information Security Management System.
26
中石化公司
27
Transformation Development Strategy
Energy
Hydrogen Energy Development Plan
- Currently engaged in the development of methanol reforming hydrogen production technology, which offers dual advantages of high-efficiency hydrogen generation and thermal energy recovery.
- Performance data for hydrogen production and heat generation meet design requirements, with system integration testing planned for 2025 to validate efficiency and applicability.
Battery Flame Retardant
- The developed halogen-free high-temperature flame retardant enhances the safety of high-capacity batteries.
- It is being actively promoted in the battery, energy storage, and flame-retardant materials sectors, with market feedback expected in 2025H2.
Installation of Natural Gas Engine Generator Unit
- The Toufen Plant's energy transition plan, the original high-emission coal-fired cogeneration plant has been decommissioned. Natural gas engine generator unit have been constructed and are expected to be fully operational in 2025H2.
5G Communication
Development of Low-Dielectric Resin
- The currently developed millimeter-wave copper-clad laminate (CCL) material integrates low-dielectric and high-thermal conductivity properties through low-loss cyclic olefin resin technology, surpassing existing market products.
- This material meets high-frequency low-dielectric standards and is being refined in collaboration with board manufacturers in Japan and Taiwan to optimize formulations and accelerate market adoption.
Semiconductor Materials
- In response to the localization demands of the semiconductor supply chain, we are enhancing in-house R&D and manufacturing capabilities while actively collaborating with leading domestic and international firms to introduce key technologies.
- The initiative will be executed through wholly owned or joint venture models to maximize resource efficiency, ensuring technological leadership and market competitiveness. Additionally, we are advancing electronic-grade chemical projects for semiconductor applications to further strengthen industry competitiveness.
中石化公司
中國石油化學工業開發股份有限公司
China Petrochemical Development Corporation
Q & A
Respect · Innovation · Care · Excellence · Green Business
Transform the Petrochemical Industry
Expand new business in Land Development
中國石油化學工業開發股份有限公司
China Petrochemical Development Corporation
Thank You
Respect · Innovation · Care · Excellence · Green Business
Website: https://www.cpdc.com.tw
CPDC Spokesperson: 02-8787-8187 x8370
[email protected]