In the first half of the year, the international environment became more complex and severe. The geopolitical crisis led to rising energy prices, driving up consumer prices. Europe and the United States suffered from inflationary pressures, the United States raised interest rates, and the world economy fell into recession. In addition, the repeated epidemics made the world economic recovery more difficult. The domestic epidemic has spread in many places. The Shanghai epidemic has a significant impact on the economy, domestic consumption has weakened, and the downward pressure on the economy has increased significantly in the second quarter. Facing the extremely complex and difficult situation, the CPC Central Committee and the State Council made decisions and deployments, efficiently coordinated epidemic prevention and control and economic and social development, increased macro policy adjustment, and effectively implemented a package of policy measures to stabilize the economy. The rebound of the epidemic has been effectively controlled, and the national economy has stabilized and rebounded. The marginal improvement of production demand and the continuous high-quality development trend. In the first half of the year, the GDP increased by 2.5% year-on-year (source: National Bureau of Statistics). During the reporting period, downstream refrigerator (cabinet) enterprises intermittently stopped production or reduced the production load, and the output of refrigerator (cabinet) decreased. The output of household refrigerators and freezers was 41.642 million units and 12.323 million units, respectively, down 6.2% and 19.5% year-on-year (according to the website of the Bureau of Statistics), which affected the company’s sales volume of rigid foam combination polyethers. Due to the impact of demand, the average purchase price of propylene oxide in the market was 10,111 yuan/ton, down 34.72% from the same period last year.

Faced with the complex environment, the company responded effectively by continuing to expand the market influence of polyurethane polyether and isopropanolamine, focusing on process optimization and project expansion in Taixing base, improving operational efficiency and promoting high-quality development.

1. Develop new technologies to serve customer value creation; continuously explore new application fields and new application markets of polyether and alkanolamine products, strengthen customer service, improve brand value, and promote industrial development;

2. Strictly focus on safety production and environmental protection management, ensure product production stability and market supply according to new requirements, and take cost reduction and efficiency measures to control operating costs and improve product profitability;

3. Promote the construction of key projects and create integrated advantages.

After the production of the propylene oxide plant in Taixing base, process optimization will be continued to improve the operation efficiency of the plant; in view of the characteristics of the propylene oxide plant and the industry situation, the decision will be made to promote the upgrading of the plant, and the production capacity will be expanded to 250,000 tons on the basis of the existing plant. In order to reduce the consumption of raw materials (energy) of the device, enlarge the production capacity of the device, and comprehensively utilize the intermediate products, the advanced technology will be brought into play, and the efficiency and overall value of the device will be greatly improved. Actively communicate with the competent government departments to accelerate the construction of the “annual output of 120,000 tons of polyether polyols” project.

The company continues to adhere to the concept of innovation, allocate resources to build an industrial chain of propylene oxide-polyether, alcohol amine and derivatives, and improve the quality and competitiveness of the enterprise.