Daqing Refining & Chemical Company is driving the implementation of measures to enhance quality and efficiency. By focusing on key areas such as production optimization, market expansion, and cost reduction, the company is unlocking value across the board to foster high-quality development.
Adhering to the core theme of high-quality development, Daqing Refining & Chemical has thoroughly implemented "Four-Refinement" management principles and vigorously advanced its three-year rolling plan for quality and efficiency improvement. The plan outlines 233 specific measures across 34 items in six major categories, aiming to "mine gold" from the finest details and achieve breakthroughs in key areas like production optimization, market expansion, and cost reduction. Since the start of 2025, the company has generated 350 million yuan in value through these improvements. Crude oil processing volume hit a 13-year high, while total processing costs for refining and chemicals dropped by 3.2% and 2.1% year-on-year, respectively, laying a solid foundation for operations in 2026.
Seeking Efficiency Through Optimization: Squeezing Real Value from the Production Line
Daqing Refining & Chemical prioritizes stable operations and market demand, meticulously optimizing production organization. By dynamically analyzing industry trends, flexibly adjusting business strategies, and strengthening upstream-downstream supply chain coordination, the company ensures continuous product mix optimization and maximizes overall benefits. Adopting the philosophy that "fluctuation equals an incident," the company has comprehensively strengthened control over the entire production process. It has standardized post inspections, operational changes, and alarm management, effectively reducing unplanned shutdowns and production fluctuations to secure a stable, high-yield, and efficient operation. Through strict adherence to production plans and enhanced command coordination, the company successfully met its 2025 supply obligations for gasoline and diesel; the proportion of high-grade gasoline increased by 15.41 percentage points year-on-year, achieving both supply security and increased efficiency. Additionally, by scientifically regulating dense-phase temperatures and catalyst-to-oil ratios to optimize reaction conditions, the company increased the propylene-to-heavy-oil yield of its two fluid catalytic cracking (FCC) units by 0.31 and 0.71 percentage points, respectively.
The company accurately tracks market trends, dynamically adjusts production schedules, and seizes market opportunities to achieve a significant increase in the output of high-efficiency products. Through strategic foresight and the precise control of operational parameters and process indicators, the company has ramped up capacity for high-value-added products, ensuring continued growth in new material output in 2025. It has also scientifically managed the production of items such as paraffin wax and aviation kerosene; consequently, paraffin production hit a new record in 2025, while aviation kerosene output saw a year-on-year increase.
Unlocking Market Potential: Precision Analysis to Drive Revenue Growth
Faced with a complex market environment, Daqing Refining & Chemical Company adheres to a market-oriented, customer-first philosophy. It proactively innovates, manages operations with meticulous care, and strives to maximize value creation.
Keeping a close finger on the market pulse, the company has strengthened the synergy between production and sales and intensified marketing efforts to consolidate existing markets and explore new sectors. The marketing team actively engages with customer needs and advances polypropylene brand development; new grades such as EA5076 and EA322M have entered the trial and promotion phase, boosting the company's market share for polypropylene in the Northeast region.
Committed to a service-oriented approach, the company continuously enhances its service capabilities, optimizes service models, and improves service quality. It implements differentiated service strategies—tailored to specific enterprises or stations—and creates customized solutions for individual customer requirements. In 2025, cumulative sales of new salt-resistant polymers reached 2,900 tons, successfully entering the Xinjiang Oilfield market and expanding into overseas markets. Additionally, the company proactively addressed customer packaging requirements by organizing a dedicated task force to upgrade packaging lines, thereby facilitating the entry of 25kg-specification paraffin products into the Americas market.
Driving Efficiency through Control: Company-wide Action to Reduce Costs
Upholding the principle that "all costs can be reduced," Daqing Refining & Chemical Company implements a comprehensive cost control model covering all personnel, elements, processes, and product lifecycles, driving a continuous decline in both production costs and non-production expenses.
The company continuously optimizes system operations and strengthens dynamic monitoring and adjustment, fully tapping into cost-reduction potential across every stage of the value chain. By strengthening the monitoring of unit consumption and optimizing processes—alongside conducting benchmarking analyses—the company aims to achieve a year-on-year absolute reduction in total processing costs for refining and chemicals by 2025, while lowering the unit consumption of auxiliary agents and materials to realize cost savings of RMB 15.07 million. Regarding the management of physical resource consumption, the company has established rigorous control targets, advanced cost-benchmarking improvements, enhanced data analysis, and continuously optimized the consumption of water, electricity, gas, and compressed air.
The company adheres to a management approach rooted in constant cost-benefit analysis; it deepens cost-reduction measures in procurement by implementing differentiated "item-specific" strategies and establishing a comprehensive price-benchmarking system to lower expenditures. Furthermore, it intensifies efforts to dispose of and revitalize assets by comprehensively reviewing low-efficiency and negative-efficiency assets to optimize the asset structure. Finally, the company strengthens source-level management—employing measures such as inventory reduction—to effectively curtail outsourcing service costs.
