In 2022, we were confronted with the COVID-19 pandemic, dealt with intensified market competition, carried out our expansion plan and strived to maximise our profitability. We experienced a year of great challenges and achieved remarkable results. Here, on behalf of the Board of Directors, I am pleased to present the Sustainability Report of China Sunsine Chemical Holdings Ltd. (“China Sunsine”, together with its subsidiaries, collectively the “Group”) for the financial year ended 31 December 2022 (“FY2022”).
The current global economic situation is becoming increasingly gloomy, and the dark clouds will not pass quickly in the short term. The Ukraine-Russia conflict continues to deteriorate, with the possibility of further escalation. Raw material prices continue to fluctuate, posing challenges to enterprises in their cost control abilities. In the meantime, the competition within the rubber chemical industry has become more intense.
In the face of such a complex and uncertain external environment, we adhere to the concept of realizing customer value and social benefits, uphold a “bottomline thinking” approach, and carry forward the spirit of hard work and entrepreneurship. Relying on the advantages we have accumulated over the years in economies of scale, strong financial position, brand name, superior quality, and high standards in environmental protection and safety, the Group’s revenue continued to increase, and our market leadership position was further strengthened. In 2022, the Group remained as the world’s largest rubber accelerators producer and China’s largest rubber chemical enterprise. Our brand awareness among our broad customer base and the greater competitive advantages within the industry were further enhanced.
The Group continues to expand domestic and export markets and is committed to product diversification. Guided by the “Higher sales volume leading to higher production, which in turn stimulates even higher sales” (also called “Sales and Production Equilibrium”) strategy, we strive to build a sound market and products system and implement project expansion plans to support this effort.
In 2022, the 30,000-tonne Anti-oxidant TMQ and 2,000-tonne HTMQ projects began production in the first half of 2022. The Phase 2 Insoluble Sulphur project with an annual capacity of 30,000-tonne, adopting automated and continuous production methods, had also started construction and is expected to be completed by the end of 2023. Phase 1 of the 20,000-tonne continuous production of high-quality MBT project was also launched and is expected to be completed by the end of 2023.
While focusing on production, construction, and operations, the Group also emphasises technological and managerial innovation. The Group has its own research and development team and closely collaborates with well-known universities and research institutes such as Tsinghua University and Qingdao University of Science and Technology etc. We actively invest in the transformation and upgrading of the rubber chemicals industry towards clean, automated, and intelligent production, making a greater contribution to the development of the tyre and even automotive industry.
The Group continues to implement the policy of thrift and strives to reduce costs. Cost competitiveness is crucial, especially in the current fiercely competitive situation. Many kinds of methods, such as reducing all kinds of consumption, controlling various expenses, eliminating wastage, and plugging any operational gaps are all implemented through the entire process from raw material procurement to product sales and receipt of payment.
Given the increasingly challenging global economic environment and the industry’s competitive landscape, the Group pays much attention to the need to enhance risk awareness, strengthen “bottom-line” thinking, and improve risk prevention and control capabilities. Risk awareness, job training, system construction, and the implementation of assessments in risk control are consistently and continuously conducted. With everyone’s joint efforts, the Group’s risk control awareness has been further strengthened.
In 2022, we faced various risks and crises, such as the COVID-19 pandemic and strict control measures, stringent environmental protection and safety inspections. All staff worked together tirelessly in ensuring physical health, and achieving the goal of safety and environmental protection. No major accidents occurred. The overall level of safety and environmental protection of the Group continued to improve steadily.
As a responsible corporate citizen, China Sunsine also gives priority to social responsibility and participates in various public welfare activities, such as implementing strict pandemic prevention measures, conducting environmental protection and safety initiatives, caring for vulnerable groups, and promoting the revitalization of rural economy.
The Group’s commitment to putting people first and practising mindfulness for the benefit of others also helped it to achieve a shared value with customers and society. We provide customers with high-quality products, reasonable prices, long-term stable supply, and after-sales services. We are also committed to assuming more social responsibility, balancing the interests of the enterprise, employees, shareholders, and relevant stakeholders in society, to realize our value in society.
We have the confidence and ability in keeping the momentum of the Group’s long-term and sustainable development. At the same time, we sincerely look forward to your active participation, so that we can work together to create a more brilliant future!
