About Us

Yanchang Petroleum Group (Hong Kong) Co., Ltd.

Yanchang Petroleum Group (Hong Kong) Co., Ltd. ("Yanchang Hong Kong"), established on May 24, 2010, is the sole wholly-owned subsidiary incorporated overseas by Shaanxi Yanchang Petroleum (Group) Co., Ltd. ("Yanchang Group"). It holds a critical position in Yanchang Group's international strategic layout, shouldering the important task of promoting the leapfrog development of the Group's overseas business. Focusing on two core business areas of overseas investment and international trade, the Company has gradually built a solid business foundation and continuously enhanced its influence through a professional team, rich experience, and innovative concepts.

Company Profile

Yanchang Petroleum Group (Hong Kong) Company Limited ("Yanchang HK")
Established on May 24, 2010, Yanchang HK is the sole wholly-owned subsidiary and core internationalization platform of Shaanxi Yanchang Petroleum (Group) Co., Ltd. ("Yanchang Group") outside mainland China. Serving as a vital bridge connecting Yanchang Group to global markets, the company is tasked with expanding overseas operations, optimizing global resource allocation, and driving the Group's international growth strategy. Yanchang HK focuses on two core business segments: Overseas Investments and International Trade. Through professional team execution and innovative development concepts, it continuously enhances international operational capabilities, striving to become a key overseas hub for Yanchang Group's vision of becoming a world-class energy and chemical enterprise.

I. Overseas Investment Business: Diversified Strategic Layout with Deep Integration into International Capital Markets
Anchored in energy and chemical industries, Yanchang HK actively builds a diversified overseas investment portfolio through equity partnerships and cross-border collaboration:

• Consolidating Core Energy Investments: Holds 53.49% equity in Yanchang Petroleum International Ltd. (Stock Code: HK00346), strengthening capital deployment in international energy markets.

• Deepening Cross-Border Collaboration & Resource Integration: Holds 98.5% interest in a private equity fund partnership project with US-based KKR. Leveraging KKR's global financial market resources and expertise, this collaboration deepens synergies in energy technology, capital, and market access.

• Expanding into Emerging Sectors:

  • Financial Leasing: Holds 45% equity in Guantian International Financial Leasing Co., Ltd., exploring new models for industry-finance integration.

  • Rubber Industry: Holds 46.7% equity in Yanchang Rubber (Thailand) Co., Ltd. — a strategic move to extend Yanchang Group's overseas rubber supply chain and internationalize raw material sourcing and industrial layout.

• Investment Scale & Structure: Cumulative investment across these projects totals approximately USD 730 million, with the portfolio strategically upgrading toward an "Energy + Industry + Finance" diversification model.

 II. International Trade Business: Crude Oil Focus with Global Network Expansion
As Yanchang Group's primary offshore executor for crude oil procurement, Yanchang HK has built a global trade network through superior market analysis and supply chain management:

• Business Development: Since fully launching international trade operations in H2 2017, cumulative crude oil procurement reached ~12.86 million metric tons, generating sales of ~USD 5.74 billion. This efficiently ensures stable supply for the Group's refineries and secures industrial chain operations.

• Future Strategy:

  • Business Boundary Expansion: Diversifying into liquefied natural gas (LNG) and chemical products trading while strengthening crude oil operations. Capitalizes on international market channels and intelligence to balance "global and domestic resources across dual markets."

  • Model Innovation & Precision Management: Advances trade model innovation and refined management practices. Optimizes procurement strategies and diversifies supply channels to enhance global competitiveness.

  • Industrial Chain Synergy: Strengthens resource/information sharing with upstream/downstream partners to globalize Yanchang Group's petrochemical value chain. Positions the Group advantageously in international markets for high-quality sustainable development.

The History of Yanchang Petroleum (Group) Co., Ltd.

YCPC has a long history and can be traced back to 1905. At that time, the YCPC Factory was established in Yanchang County of Shaanxi Province with the approval of the government of Qing Dynasty (1636 AD – 1912 AD). The year of 1907 saw the foundation of the first oil well in mainland China, marking the end of history of no oil production in mainland China. In addition, YCPC is also titled as "Meritorious Oil Field", owing to its important contributions to China's revolution and economic construction. In 1944, Mao Zedong (1893 AD - 1976 AD), Founder of the People's Republic of China, inscribed the YCPC with “Be Engrossed in Work” to encourage YCPC to make further development. Since the implementation of reform and open policy in China, especially after two restructurings in 1998 and 2005, YCPC has stepped onto the fast track of sustainable development and borne fruitful results. In 2007, its crude oil output exceeded 10 million tons; in 2010, its sales revenue was registered RMB100 billion; in 2013, it was listed as Fortune Global Top 500; in 2021, it completed the production of 11.33 million tons of oil, processed 13.22 million tons of crude oil, sold 6.782 billion cubic meters of natural gas and produced 6.76 million tons of chemical products. These accomplishments make the YCPC rank the first in Shaanxi Province and the top in China in terms of business income and financial contribution for years. What’s more, YCPC has won the 3rd China Industrial Award, the National May Day Award, advanced enterprises in fulfilling social responsibility in Shaanxi Province and other prizes and titles.

Future Prospect

We will devote more efforts to the domestic and overseas oil products trading, nurturing new profit drivers.

We will seek opportunities to introduce new energy, new technology, new strategic cooperation partners and new investors, expand the business scale and diversify financing channels, in order to enhance profitability and seek maximum benefit for our shareholders.

The Milestone of Yanchang Petroleum (Group) Co., Ltd.