In 2020, in accordance with the requirements of Shandong Province's industrial policies, SHPCL began its transformation and upgrading.In 2021, its subsidiary Hengyuan Carbon Materials Co., Ltd. (hereinafter referred to as“Hengyuan Carbon”or“the company”) was established. The company is equipped with a 300,000-ton/year needle coke unit, utilizing the internationally advanced needle coke coking patented technology X-Coker™ and the "Two Furnaces Three Towers" process. It develops towards high-end oil-based carbon materials and the carbon material industry chain. Its main products include electrode coke, anode coke, nipple coke, and other by-products.

The company has deepened its layout based on the demand in high-end carbon material fields such as ultra-high power graphite electrodes, actively striving to become a high-end needle coke production base in China.Through innovative production technology, strict quality control, and optimized production processes, the company successfully broke through technical bottlenecks within just over a year. Its products have leapt to internationally leading levels, playing a significant role in the development of domestic new energy, electric arc steelmaking, and military industries.

In 2024, the company successfully became the first one that pioneered the "pentane deasphalting" technology using a supercritical extraction unit among the global industry peers and successfully applied for a national invention patent. In 2025, this technology was officially industrialized for application, greatly improving raw material utilization, reducing cost and energy consumption, broadening raw material selection, effectively enhancing product quality, and increasing company benefits. It also won strategic initiative for the company in building a green, low-carbon industry chain and seizing the high-end carbon materials market. 

In 2025, the company achieved a breakthrough in the internationally advanced needle coke technology.The key indicators of its products have reached or even surpassed the standards of high-end premium coke from leading international companies. This technology stopped China's long-term dependence on imports of the nipple coke product. In the same year, the "Hengyuan Standard," with indicators higher than national standards, was registered on the National Standard Information Public Service Platform hosted by the Standardization Administration of China's State Market Regulatory Administration. This marks the gradual entry of the Hengyuan brand into the international high-end product standard system. 

The company also emphasizes R&D and green power application. In terms of R&D, leveraging the High-end Carbon Materials Research Institute platform, it has deepened strategic industry-university-research cooperation with key national laboratories of renowned domestic universities. Research is conducted in cutting-edge fields such as needle coke raw materials, silicon-carbon composite lithium battery anode materials, modified pitch, third-generation semiconductors, and special graphite. To date, the company has accumulated over 20 invention and utility model patents. 

In terms of green power application, a photovoltaic power generation system with a total installed capacity of 6 MW has been introduced, mainly installed on rooftops of factory buildings, office buildings, parking spaces, etc., covering a total area of 50,000 square meters. The annual power generation is about 8 million kWh, saving over 2.1 million yuan in electricity costs and reducing carbon emissions by approximately 5,474 tons.

In 2016, SHPCL successfully acquired a 51.02% stake in Shell Refining Company (Federation of Malaya) Berhad, renaming it Hengyuan Refining Company Berhad (HRC). HRC is the second-largest refinery and the largest Chinese-funded manufacturing enterprise in Malaysia. It features a single point mooring system with a 150,000-ton loading/unloading capacity and a 7.5-million-ton trestle wharf. Its products include LPG, propylene, naphtha, gasoline, mixed aromatics, light diesel, jet fuel, and fuel oil components. In 2023, against the global backdrop of advocating carbon reduction, HRC was awarded the "Prime Minister's Hibiscus Award" and the "ESG Continuous Practice Award," which fully affirmed HRC's efforts and contributions in environmental protection, society, and governance, demonstrating HRC's social responsibility in Malaysia.

In 2017, Malaysia Hengyuan International Limited (MHIL) was established. As a regional trading center supporting HRC's trading activities, it has established trade links with multiple countries and regions including the UK, South Korea, France, Finland, Greece, and Singapore.

Over the years, the company has consistently ranked among the "Top 500 Chinese Enterprises," "Top 100 Shandong Enterprises," and "Top 50 Industrial Enterprises in Dezhou City." And it has been honored with titles such as the National May Day Labor Award, National Excellent Chemical Enterprise, National Advanced Collective in the Petroleum and Chemical Industry, China-ASEAN Petroleum and Chemical International Cooperation Benchmark Enterprise, and Shandong Province Circular Economy Demonstration Unit.