DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2018shares | |
Class of Shares | |
Entity Registrant Name | CHINA PETROLEUM & CHEMICAL CORP |
Entity Central Index Key | 0001123658 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
H shares | |
Class of Shares | |
Entity Common Stock, Shares Outstanding | 25,513,438,600 |
A shares | |
Class of Shares | |
Entity Common Stock, Shares Outstanding | 95,557,771,046 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenues | |||
Sales of goods | ¥ 2,825,613 | ¥ 2,300,470 | ¥ 1,880,190 |
Other operating revenues | 65,566 | 59,723 | 50,721 |
Total operating revenues | 2,891,179 | 2,360,193 | 1,930,911 |
Operating expenses | |||
Purchased crude oil, products and operating supplies and expenses | (2,292,983) | (1,770,651) | (1,379,691) |
Selling, general and administrative expenses | (65,642) | (64,973) | (64,360) |
Depreciation, depletion and amortization | (109,967) | (115,310) | (108,425) |
Exploration expenses, including dry holes | (10,744) | (11,089) | (11,035) |
Personnel expenses | (77,721) | (74,854) | (63,887) |
Taxes other than income tax | (246,498) | (235,292) | (232,006) |
Other operating income/(expense), net | (5,360) | (16,554) | 5,686 |
Total operating expenses | (2,808,915) | (2,288,723) | (1,853,718) |
Operating income | 82,264 | 71,470 | 77,193 |
Finance costs | |||
Interest expense | (7,321) | (7,146) | (9,219) |
Interest income | 7,726 | 5,254 | 3,218 |
Foreign currency exchange (loss)/gain, net | 596 | 332 | (610) |
Net finance costs | 1,001 | (1,560) | (6,611) |
Investment income | 1,871 | 262 | 263 |
Share of profits less losses from associates and joint ventures | 13,974 | 16,525 | 9,306 |
Earnings before income tax | 99,110 | 86,697 | 80,151 |
Income tax expense | (20,213) | (16,279) | (20,707) |
Net income | 78,897 | 70,418 | 59,444 |
Attributable to: | |||
Owners of the Company | 61,618 | 51,244 | 46,672 |
Non-controlling interests | 17,279 | 19,174 | 12,772 |
Net income | ¥ 78,897 | ¥ 70,418 | ¥ 59,444 |
Earnings per share: | |||
Basic | ¥ 0.51 | ¥ 0.42 | ¥ 0.39 |
Diluted | ¥ 0.51 | ¥ 0.42 | ¥ 0.39 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [abstract] | |||
Net income | ¥ 78,897 | ¥ 70,418 | ¥ 59,444 |
Items that may not be reclassified subsequently to profit or loss | |||
Equity investments at fair value through other comprehensive income | (53) | ||
Total items that maynot be reclassified subsequently to profit or loss | (53) | ||
Items that may be reclassified subsequently to profit or loss | |||
Share of other comprehensive income /(loss) of associates and joint ventures | (229) | 1,053 | 45 |
Available-for-sale securities | (57) | (24) | |
Cash flow hedges | (9,741) | (1,580) | 2,014 |
Foreign currency translation differences | 3,399 | (3,792) | 4,298 |
Total items that may be reclassified subsequently to profit or loss | (6,571) | (4,376) | 6,333 |
Total other comprehensive income | (6,624) | (4,376) | 6,333 |
Total comprehensive income for the year | 72,273 | 66,042 | 65,777 |
Attributable to: | |||
Owners of the Company | 54,000 | 47,763 | 53,724 |
Non-controlling interests | 18,273 | 18,279 | 12,053 |
Total comprehensive income for the year | ¥ 72,273 | ¥ 66,042 | ¥ 65,777 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | ¥ 111,922 | ¥ 113,218 |
Time deposits with financial institutions | 55,093 | 51,786 |
Financial assets at fair value through profit or loss | 25,732 | 51,196 |
Derivatives financial assets | 7,887 | 526 |
Trade accounts receivable and bills receivable | 64,879 | 84,701 |
Inventories | 184,584 | 186,693 |
Prepaid expenses and other current assets | 54,023 | 40,929 |
Total current assets | 504,120 | 529,049 |
Non-current assets | ||
Property, plant and equipment, net | 617,762 | 650,774 |
Construction in progress | 136,963 | 118,645 |
Goodwill | 8,676 | 8,634 |
Interest in associates | 89,537 | 79,726 |
Interest in joint ventures | 56,184 | 51,361 |
Available-for-sale financial assets | 1,676 | |
Financial assets at fair value through other comprehensive income | 1,450 | |
Deferred tax assets | 21,694 | 15,131 |
Lease prepayments | 64,514 | 58,526 |
Long-term prepayments and other assets | 91,408 | 81,982 |
Total non-current assets | 1,088,188 | 1,066,455 |
Total assets | 1,592,308 | 1,595,504 |
Current liabilities | ||
Short-term debts | 29,462 | 55,338 |
Loans from Sinopec Group Company and fellow subsidiaries | 31,665 | 25,311 |
Derivatives financial liabilities | 13,571 | 2,665 |
Trade accounts payable and bills payable | 192,757 | 206,535 |
Contract liabilities | 124,793 | |
Other payables | 166,151 | 276,582 |
Income tax payable | 6,699 | 13,015 |
Total current liabilities | 565,098 | 579,446 |
Non-current liabilities | ||
Long-term debts | 51,011 | 55,804 |
Loans from Sinopec Group Company and fellow subsidiaries | 42,516 | 43,320 |
Deferred tax liabilities | 5,948 | 6,466 |
Provisions | 42,800 | 39,958 |
Other long-term liabilities | 28,400 | 17,620 |
Total non-current liabilities | 170,675 | 163,168 |
Total liabilities | 735,773 | 742,614 |
Equity | ||
Share capital | 121,071 | 121,071 |
Reserves | 596,213 | 605,049 |
Total equity attributable to owners of the Company | 717,284 | 726,120 |
Non-controlling interests | 139,251 | 126,770 |
Total equity | 856,535 | 852,890 |
Total liabilities and equity | ¥ 1,592,308 | ¥ 1,595,504 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - CNY (¥) | Share capital [member] | Capital reserveSinopec Assets Management Corporation ("SAMC") | Capital reserve | Share premium | Statutory surplus reserve | Discretionary surplus reserve | Other reserves | Retained earningsSinopec Assets Management Corporation ("SAMC") | Retained earnings | Total equity attributable to owners of the Company [member]Sinopec Assets Management Corporation ("SAMC") | Total equity attributable to owners of the Company [member] | Non-controlling interestsSinopec Assets Management Corporation ("SAMC") | Non-controlling interests | Sinopec Assets Management Corporation ("SAMC") | Total |
Balance at beginning of year at Dec. 31, 2015 | ¥ 121,071,000,000 | ¥ 28,341,000,000 | ¥ 55,850,000,000 | ¥ 79,640,000,000 | ¥ 117,000,000,000 | ¥ (6,781,000,000) | ¥ 281,076,000,000 | ¥ 676,197,000,000 | ¥ 111,964,000,000 | ¥ 788,161,000,000 | |||||
Net income | 46,672,000,000 | 46,672,000,000 | 12,772,000,000 | 59,444,000,000 | |||||||||||
Other comprehensive income (Note 11) | 7,052,000,000 | 7,052,000,000 | (719,000,000) | 6,333,000,000 | |||||||||||
Total comprehensive income for the year | 7,052,000,000 | 46,672,000,000 | 53,724,000,000 | 12,053,000,000 | 65,777,000,000 | ||||||||||
Contributions by and distributions to owners: | |||||||||||||||
Final dividend | (7,264,000,000) | (7,264,000,000) | (7,264,000,000) | ||||||||||||
Interim dividend | (9,565,000,000) | (9,565,000,000) | (9,565,000,000) | ||||||||||||
Appropriation (Note 41(c)) | 0 | ||||||||||||||
Distributions to non-controlling interests | ¥ (2,137,000,000) | ¥ (2,137,000,000) | ¥ 2,137,000,000 | (6,146,000,000) | (6,146,000,000) | ||||||||||
Profit distribution to SAMC (Note 33) | ¥ 47,000,000 | ¥ 47,000,000 | ¥ 39,000,000 | ¥ 86,000,000 | 46,672,000,000 | ||||||||||
Total contributions by and distributions to owners | (2,137,000,000) | (16,876,000,000) | (19,013,000,000) | (4,048,000,000) | (23,061,000,000) | ||||||||||
Changes in ownership interests in subsidiaries that do not result in a loss of control: | |||||||||||||||
Transaction with non-controlling interests | (30,000,000) | (30,000,000) | 263,000,000 | 233,000,000 | |||||||||||
Total changes in ownership interests in subsidiaries that do not result in a loss of control | (30,000,000) | (30,000,000) | 263,000,000 | 233,000,000 | |||||||||||
Total transactions with owners | (2,167,000,000) | (16,876,000,000) | (19,043,000,000) | (3,785,000,000) | (22,828,000,000) | ||||||||||
Others | 116,000,000 | 153,000,000 | (153,000,000) | 116,000,000 | 9,000,000 | 125,000,000 | |||||||||
Balance at end of year at Dec. 31, 2016 | 121,071,000,000 | 26,290,000,000 | 55,850,000,000 | 79,640,000,000 | 117,000,000,000 | 424,000,000 | 310,719,000,000 | 710,994,000,000 | 120,241,000,000 | 831,235,000,000 | |||||
Net income | 51,244,000,000 | 51,244,000,000 | 19,174,000,000 | 70,418,000,000 | |||||||||||
Other comprehensive income (Note 11) | (3,481,000,000) | (3,481,000,000) | (895,000,000) | (4,376,000,000) | |||||||||||
Total comprehensive income for the year | (3,481,000,000) | 51,244,000,000 | 47,763,000,000 | 18,279,000,000 | 66,042,000,000 | ||||||||||
Contributions by and distributions to owners: | |||||||||||||||
Final dividend | (20,582,000,000) | (20,582,000,000) | (20,582,000,000) | ||||||||||||
Interim dividend | (12,107,000,000) | (12,107,000,000) | (12,107,000,000) | ||||||||||||
Appropriation (Note 41(c)) | 3,042,000,000 | (3,042,000,000) | 0 | ||||||||||||
Distributions to non-controlling interests | (12,501,000,000) | (12,501,000,000) | |||||||||||||
Profit distribution to SAMC (Note 33) | 51,244,000,000 | 51,244,000,000 | |||||||||||||
Total contributions by and distributions to owners | 3,042,000,000 | (35,731,000,000) | (32,689,000,000) | (12,501,000,000) | (45,190,000,000) | ||||||||||
Changes in ownership interests in subsidiaries that do not result in a loss of control: | |||||||||||||||
Transaction with non-controlling interests | (13,000,000) | (13,000,000) | 724,000,000 | 711,000,000 | |||||||||||
Total changes in ownership interests in subsidiaries that do not result in a loss of control | (13,000,000) | (13,000,000) | 724,000,000 | 711,000,000 | |||||||||||
Total transactions with owners | (13,000,000) | 3,042,000,000 | (35,731,000,000) | (32,702,000,000) | (11,777,000,000) | (44,479,000,000) | |||||||||
Others | 49,000,000 | 123,000,000 | (107,000,000) | 65,000,000 | 27,000,000 | 92,000,000 | |||||||||
Balance at end of year at Dec. 31, 2017 | 121,071,000,000 | 26,326,000,000 | 55,850,000,000 | 82,682,000,000 | 117,000,000,000 | (2,934,000,000) | 326,125,000,000 | 726,120,000,000 | 126,770,000,000 | 852,890,000,000 | |||||
Change in accounting policy (Note1(a)) | Change in accounting policy (Note 1(a)) | (12,000,000) | 12,000,000 | |||||||||||||
Balance as of January 1, 2018 | Change in accounting policy (Note 1(a)) | (2,946,000,000) | 326,137,000,000 | |||||||||||||
Balance as of January 1, 2018 | 121,071,000,000 | 26,326,000,000 | 55,850,000,000 | 82,682,000,000 | 117,000,000,000 | 726,120,000,000 | 126,770,000,000 | 852,890,000,000 | |||||||
Net income | 61,618,000,000 | 61,618,000,000 | 17,279,000,000 | 78,897,000,000 | |||||||||||
Other comprehensive income (Note 11) | (7,618,000,000) | (7,618,000,000) | 994,000,000 | (6,624,000,000) | |||||||||||
Total comprehensive income for the year | (7,618,000,000) | 61,618,000,000 | 54,000,000,000 | 18,273,000,000 | 72,273,000,000 | ||||||||||
Amounts transferred to cash flow hedge reserves initially recognized by hedged items | 5,269,000,000 | 5,269,000,000 | 5,269,000,000 | ||||||||||||
Contributions by and distributions to owners: | |||||||||||||||
Final dividend | (48,428,000,000) | (48,428,000,000) | (48,428,000,000) | ||||||||||||
Interim dividend | (19,371,000,000) | (19,371,000,000) | (19,371,000,000) | ||||||||||||
Appropriation (Note 41(c)) | 3,996,000,000 | (3,996,000,000) | 0 | ||||||||||||
Distributions to non-controlling interests | (7,476,000,000) | (7,476,000,000) | |||||||||||||
Contributions to subsidiaries from non-controlling interests | 2,060,000,000 | 2,060,000,000 | |||||||||||||
Profit distribution to SAMC (Note 33) | 61,618,000,000 | 61,618,000,000 | |||||||||||||
Total contributions by and distributions to owners | 3,996,000,000 | (71,795,000,000) | (67,799,000,000) | (5,416,000,000) | (73,215,000,000) | ||||||||||
Changes in ownership interests in subsidiaries that do not result in a loss of control: | |||||||||||||||
Transaction with non-controlling interests | (12,000,000) | (12,000,000) | (299,000,000) | (311,000,000) | |||||||||||
Total transactions with owners | (12,000,000) | 3,996,000,000 | (71,795,000,000) | (67,811,000,000) | (5,715,000,000) | (73,526,000,000) | |||||||||
Others | (261,000,000) | 818,000,000 | (851,000,000) | (294,000,000) | (77,000,000) | (371,000,000) | |||||||||
Balance at end of year at Dec. 31, 2018 | ¥ 121,071,000,000 | ¥ 26,053,000,000 | ¥ 55,850,000,000 | ¥ 86,678,000,000 | ¥ 117,000,000,000 | ¥ (4,477,000,000) | ¥ 315,109,000,000 | ¥ 717,284,000,000 | ¥ 139,251,000,000 | ¥ 856,535,000,000 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CONSOLIDATED STATEMENT OF CASH FLOWS [abstract] | |||
Net cash generated from operating activities | ¥ 175,868 | ¥ 190,935 | ¥ 214,543 |
Investing activities | |||
Capital expenditure | (94,753) | (63,541) | (65,467) |
Exploratory wells expenditure | (8,261) | (7,407) | (7,380) |
Purchase of investments, investments in associates and investments in joint ventures | (10,116) | (6,431) | (16,389) |
Payment for financial assets at fair value through profit or loss | (29,550) | (51,196) | |
Proceeds from sale of financial assets at fair value through profit or loss | 55,000 | ||
Payment for acquisition of subsidiary, net of cash acquired | (3,188) | (1,288) | |
Proceeds from disposal of investments and investments in associates | 1,557 | 4,809 | 33,516 |
Proceeds from disposal of property, plant, equipment and other non-current assets | 9,666 | 1,313 | 440 |
Increase in time deposits with maturities over three months | (81,708) | (82,577) | (17,896) |
Decrease in time deposits with maturities over three months | 78,401 | 48,820 | 600 |
Interest received | 5,810 | 3,669 | 2,331 |
Investment and dividend income received | 10,720 | 8,506 | 4,028 |
Net cash used in investing activities | (66,422) | (145,323) | (66,217) |
Financing activities | |||
Proceeds from bank and other loans | 746,655 | 524,843 | 506,097 |
Repayments of bank and other loans | (772,072) | (536,380) | (569,091) |
Contributions to subsidiaries from non-controlling interests | 1,886 | 946 | 343 |
Dividend paid by the Company | (67,799) | (32,689) | (16,876) |
Distributions by subsidiaries to non-controlling interests | (13,700) | (7,539) | (6,553) |
Interest paid | (5,984) | (5,535) | (6,967) |
Payments made to acquire non-controlling interests | (160) | ||
Finance lease payment | (86) | (155) | |
Net cash used in financing activities | (111,260) | (56,509) | (93,047) |
Net increase/(decrease) in cash and cash equivalents | (1,814) | (10,897) | 55,279 |
Balance at beginning of period | 113,218 | 124,468 | 68,933 |
Effect of foreign currency exchange rate changes | 518 | (353) | 256 |
Balance at end of period | 111,922 | 113,218 | 124,468 |
Operating activities | |||
Earnings before income tax | 99,110 | 86,697 | 80,151 |
Adjustment for: | |||
Depreciation, depletion and amortization | 109,967 | 115,310 | 108,425 |
Dry hole costs written off | 6,921 | 6,876 | 7,467 |
Income from associates and joint ventures | (13,974) | (16,525) | (9,306) |
Investment income | (1,871) | (262) | (263) |
Gain on dilution and remeasurement of interests in the Pipeline Ltd | (20,562) | ||
Gain on remeasurement of interests in the Shanghai SECCO (Note 33) | (3,941) | ||
Interest income | (7,726) | (5,254) | (3,218) |
Interest expense | 7,321 | 7,146 | 9,219 |
Loss/(gain) on foreign currency exchange rate changes and derivative financial instruments | (1,835) | (1,547) | 86 |
Loss on disposal of property, plant, equipment and other non-current assets, net | 1,526 | 1,518 | 1,528 |
Impairment losses on assets | 11,605 | 21,791 | 17,076 |
Credit impairment losses | 141 | ||
Cash flows from (used in) operations before changes in working capital | 211,185 | 211,809 | 190,603 |
Net changes from: | |||
Accounts receivable and other current assets | (1,043) | (31,151) | (22,549) |
Inventories | (3,312) | (28,903) | (11,364) |
Accounts payable and other current liabilities | 2,111 | 59,210 | 81,089 |
Net charges from operating activities | 208,941 | 210,965 | 237,779 |
Income tax paid | (33,073) | (20,030) | (23,236) |
Net cash generated from operating activities | ¥ 175,868 | ¥ 190,935 | ¥ 214,543 |
PRINCIPAL ACTIVITIES, ORGANIZAT
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2018 | |
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION [abstract] | |
Disclosure of principal activities, organization and basis of preparation | 1 PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION Principal activities China Petroleum & Chemical Corporation (the “Company”) is an energy and chemical company that, through its subsidiaries (hereinafter collectively referred to as the “Group”), engages in oil and gas and chemical operations in the People’s Republic of China (the “PRC”). Oil and gas operations consist of exploring for, developing and producing crude oil and natural gas; transporting crude oil and natural gas by pipelines; refining crude oil into finished petroleum products; and marketing crude oil, natural gas and refined petroleum products. Chemical operations include the manufacture and marketing of a wide range of chemicals for industrial uses. Organization The Company was established in the PRC on February 25, 2000 as a joint stock limited company as part of the reorganization (the “Reorganization”) of China Petrochemical Corporation (“Sinopec Group Company”), the ultimate holding company of the Group and a ministry-level enterprise under the direct supervision of the State Council of the PRC. Prior to the incorporation of the Company, the oil and gas and chemical operations of the Group were carried on by oil administration bureaux, petrochemical and refining production enterprises and sales and marketing companies of Sinopec Group Company. As part of the Reorganization, certain of Sinopec Group Company’s core oil and gas and chemical operations and businesses together with the related assets and liabilities were transferred to the Company. On February 25, 2000, in consideration for Sinopec Group Company transferring such oil and gas and chemical operations and businesses and the related assets and liabilities to the Company, the Company issued 68.8 billion domestic state-owned ordinary shares with a par value of RMB 1.00 each to Sinopec Group Company. The shares issued to Sinopec Group Company on February 25, 2000 represented the entire registered and issued share capital of the Company as of that date. The oil and gas and chemical operations and businesses transferred to the Company were related to (i) the exploration, development and production of crude oil and natural gas, (ii) the refining, transportation, storage and marketing of crude oil and petroleum products, and (iii) the production and sales of chemicals. Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with all applicable International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). IFRS includes International Accounting Standards (“IAS”) and related interpretations (“IFRIC”). A summary of the significant accounting policies adopted by the Group are set out in Note 2. The accompanying financial statements were authorized for issue by the Board of Directors on March 22, 2019. The accounting policies adopted are consistent with those of the previous financial year, except for the adoption of new and amended standards as set out below. (a) New and amended standards and interpretations adopted by the Group A number of new or amended standards became applicable for the current reporting period and the Group had to change its accounting policies as a result of adopting the following standards: · IFRS 9 'Financial Instruments', and · IFRS 15 'Revenue from Contracts with Customers' IFRS 9 'Financial Instruments' and IFRS 15 'Revenue from Contracts with Customers'- Impact of adoption The adoption of IFRS 9 'Financial Instruments' ('IFRS 9') and IFRS 15 'Revenue from Contracts with Customers' ('IFRS 15') from January 1, 2018 by the Group resulted in changes in accounting policies and adjustments to the amounts recognized in the financial statements. Transition options of IFRS 9 'Financial Instruments' Classification and measurement The Group has elected to apply the limited exemption in IFRS 9 relating to transition for classification and measurement and impairment, and accordingly has not restated comparative periods in the year of initial application: (a) any adjustments to carrying amounts of financial assets or liabilities are recognized at the beginning of the current reporting period, with the difference recognized in opening retained earnings (b) financial assets are not reclassified in the balance sheet for the comparative period (c) provisions for impairment have not been restated in the comparative period Impairment The Group has adopted the simplified expected credit loss model for its trade receivables and contract assets, as required by IFRS 9, and the general expected credit loss model for receivables and contract assets carried at amortized. The Group assessed the loss allowance for receivables under the expected credit loss model as of January 1, 2018, no significant difference compared with the loss allowance under accounting policies applied until December 31, 2017. Hedging The Group has applied the hedging accounting prospectively to the derivatives held for hedging purpose. Financial instruments accounting policy applied until December 31, 2017 is disclosed in Note 2 (k) (iv). Transition options of IFRS 15 'Revenue from Contracts with Customers' The Group has elected to apply the simplified transition method, retrospectively with the cumulative effect of initially applying IFRS 15 as an adjustment to the balance as of January 1, 2018. Presentation and description of contract assets and contract liabilities The Group has decided to reclassify contract assets and contract liabilities and present them as a separate line item in the balance sheet based on the significance of the item. The adjustments arising from the new accounting policies are therefore recognized in the opening balance sheet as of January 1, 2018, comparative figures have not been restated. The new accounting policies are disclosed in Note 2. The adoption of IFRS 9 and IFRS 15 has no significant impact on the Group’s financial statements. The following tables show the adjustments recognized for each individual line item. Line items that were not affected by the changes have not been included. As a result, the sub-totals and totals disclosed cannot be recalculated from the numbers provided. Adjustment from Adjustment from December 31, Adoption of Adoption of January 1, Consolidated balance sheet (extract) 2017 IFRS 9 IFRS 15 2018 RMB RMB RMB RMB Non-current assets Financial assets at fair value through other comprehensive income — 1,676 — 1,676 Available-for-sale financial assets 1,676 (1,676) — — Total non-current assets 1,066,455 — — 1,066,455 Current assets Total current assets 529,049 — — 529,049 Current liabilities Contract liabilities(i) — — 120,734 120,734 Other payables(i) 276,582 — (120,734) 155,848 Total current liabilities 579,446 — — 579,446 Non-current liabilities Total non-current liabilities 163,168 — — 163,168 852,890 — — 852,890 Equity Other reserves (2,934) (12) — (2,946) Retained earnings 326,125 12 — 326,137 Total equity 852,890 — — 852,890 (i) Advances from customers were reclassified as contract liabilities by implementation of IFRS 15 'Revenue from Contracts with Customers'. (b) New and amended standards and interpretations not yet adopted by the Group IFRS 16, ‘Leases’, was issued in January 2016. It will result in almost all leases being recognized on the balance sheet by lessees, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. Leases to explore for or use oil and natural gas are not applied to IFRS 16. The Group will apply the standard from its mandatory adoption date of January 1, 2019. The Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. All right-of-use assets will be measured at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses). In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard: · The use of a single discount rate to a portfolio of leases with reasonably similar characteristics · The accounting for operating leases with a remaining lease term of less than 12 months as of January 1, 2019 as short-term leases The Group has set up a project team which has reviewed all of the Group’s leasing arrangements over the last year in light of the new lease accounting rules in IFRS 16. The standard will affect primarily the accounting for the Group’s operating leases. The Group expects to recognize right-of-use assets of approximately RMB 207.5 billion as of January 1, 2019, lease liabilities of RMB 198.6 billion (after adjustments for prepayments and accrued lease payments recognized as of December 31, 2018). The preparation of the consolidated financial statements in accordance with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Key assumptions and estimation made by management in the application of IFRS that have significant effect on the consolidated financial statements and the major sources of estimation uncertainty are disclosed in Note 39. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES [abstract] | |
Disclosure of significant accounting policies | 2 SIGNIFICANT ACCOUNTING POLICIES (a) Basis of consolidation The consolidated financial statements comprise the Company and its subsidiaries, and interest in associates and joint ventures. (i) Subsidiaries and non-controlling interests Subsidiaries are those entities controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control effectively commences until the date that control effectively ceases. Non-controlling interests at the balance sheet date, being the portion of the net assets of subsidiaries attributable to equity interests that are not owned by the Company, whether directly or indirectly through subsidiaries, are presented in the consolidated balance sheet and consolidated statement of changes in equity within equity, separately from equity attributable to the owners of the Company. Non-controlling interests in the results of the Group are presented on the face of the consolidated statement of income and the consolidated statement of comprehensive income as an allocation of the total profit or loss and total comprehensive income for the year between non-controlling interests and the owners of the Company. Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling interests within consolidated equity to reflect the change in relative interests, but no adjustments are made to goodwill and no gain or loss is recognized. If a business combination involving entities not under common control is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in the consolidated statement of income. When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former subsidiary at the date when control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (Note 2(k)) or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture (Note 2(a)(ii)). In the Company’s balance sheet, investments in subsidiaries are stated at cost less impairment losses (Note 2(o)). The particulars of the Group’s principal subsidiaries are set out in Note 37. (ii) Associates and joint ventures An associate is an entity, not being a subsidiary, in which the Group exercises significant influence over its management. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Investments in associates and joint ventures are accounted for in the consolidated financial statements using the equity method from the date that significant influence or joint control commences until the date that significant influence or joint control ceases. Under the equity method, the investment is initially recorded at cost and adjusted thereafter for the post acquisition change in the Group’s share of the investee’s net assets and any impairment loss relating to the investment (Note 2(j) and (o)). The Group’s share of the post-acquisition, post-tax results of the investees and any impairment losses for the year are recognized in the consolidated statement of income, whereas the Group’s share of the post-acquisition, post-tax items of the investees’ other comprehensive income is recognized in the consolidated statement of comprehensive income. When the Group ceases to have significant influence over an associate or joint control over a joint venture, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former investee at the date when significant influence or joint control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (see Note 2(k)) or, when appropriate, the cost on initial recognition of an investment in an associate (see Note 2(a) (ii)). (iii) Transactions eliminated on consolidation Inter-company balances and transactions and any unrealized gains arising from inter-company transactions are eliminated on consolidation. Unrealized gains arising from transactions with associates and joint ventures are eliminated to the extent of the Group’s interest in the entity. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. (iv) Merger accounting for common control combination The consolidated financial statements incorporate the financial statements of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling party. The net assets of the combining entities or businesses are combined using the existing book values from the controlling parties’ perspective. No amount is recognized as consideration for goodwill or excess of acquirers’ interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination, to the extent of the continuation of the controlling party’s interest. The consolidated statement of income includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under the common control, where there is a shorter period, regardless of the date of the common control combination. The comparative amounts in the consolidated financial statements are presented as if the entities or businesses had been combined at the previous balance sheet date or when they first came under common control, whichever is shorter. A uniform set of accounting policies is adopted by those entities. All intra-group transactions, balances and unrealized gains on transactions between combining entities or businesses are eliminated on consolidation. Transaction costs, including professional fees, registration fees, costs of furnishing information to shareholders, costs or losses incurred in combining operations of the previously separate businesses, etc., incurred in relation to the common control combination that is to be accounted for by using merger accounting is recognized as an expense in the period in which it is incurred. (b) Translation of foreign currencies The presentation currency of the Group is Renminbi. Foreign currency transactions during the year are translated into Renminbi at the applicable rates of exchange quoted by the People’s Bank of China (“PBOC”) prevailing on the transaction dates. Foreign currency monetary assets and liabilities are translated into Renminbi at the PBOC’s rates at the balance sheet date. Exchange differences, other than those capitalized as construction in progress, are recognized as income or expenses in the “finance costs” section of the consolidated statement of income. The results of foreign operations are translated into Renminbi at the applicable rates quoted by the PBOC prevailing on the transaction dates. Balance sheet items, including goodwill arising on consolidation of foreign operations are translated into Renminbi at the closing foreign exchange rates at the balance sheet date. The income and expenses of foreign operations are translated into Renminbi at the spot exchange rates or an exchange rate that approximates the spot exchange rates on the transaction dates. The resulting exchange differences are recognized in other comprehensive income and accumulated in equity in the other reserves. On disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation is reclassified from equity to the consolidated statement of income when the profit or loss on disposal is recognized. (c) Cash and cash equivalents Cash equivalents consist of time deposits with financial institutions with an initial term of less than three months when purchased. Cash equivalents are stated at cost, which approximates fair value. (d) Trade, bills and other receivables Trade, bills and other receivables are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method, less impairment losses for bad and doubtful debts (Note 2(k)). Trade, bills and other receivables are derecognized if the Group’s contractual rights to the cash flows from these financial assets expire or if the Group transfers these financial assets to another party without retaining control or substantially all risks and rewards of the assets. (e) Inventories Inventories are stated at the lower of cost and net realizable value. Cost includes the cost of purchase computed using the weighted average method and, in the case of work in progress and finished goods, direct labor and an appropriate proportion of production overheads. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. (f) Property, plant and equipment An item of property, plant and equipment is initially recorded at cost, less accumulated depreciation and impairment losses (Note 2(o)). The cost of an asset comprises its purchase price, any directly attributable costs of bringing the asset to working condition and location for its intended use. The Group recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred, when it is probable that the future economic benefits embodied with the item will flow to the Group and the cost of the item can be measured reliably. All other expenditure is recognized as an expense in the consolidated statement of income in the year in which it is incurred. Gains or losses arising from the retirement or disposal of an item of property, plant and equipment, other than oil and gas properties, are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized as income or expense in the consolidated statement of income on the date of retirement or disposal. Depreciation is provided to write off the cost amount of items of property, plant and equipment, other than oil and gas properties, over its estimated useful life on a straight-line basis, after taking into account its estimated residual value, as follows: Estimated usage period Estimated residuals rate Buildings 12 to 50 years Equipment, machinery and others 4 to 30 years Where parts of an item of property, plant and equipment have different useful lives, the cost of the item is allocated on a reasonable basis between the parts and each part is depreciated separately. Both the useful life of an asset and its residual value, if any, are reassessed annually. (g) Oil and gas properties The Group uses the successful efforts method of accounting for its oil and gas producing activities. Under this method, costs of development wells, the related supporting equipment and proved mineral interests in properties are capitalized. The cost of exploratory wells is initially capitalized as construction in progress pending determination of whether the well has found proved reserves. The impairment of exploratory well costs occurs upon the determination that the well has not found proved reserves. The exploratory well costs are usually not carried as an asset for more than one year following completion of drilling, unless (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made; (ii) drilling of the additional exploratory wells is under way or firmly planned for the near future; or (iii) other activities are being undertaken to sufficiently progress the assessing of the reserves and the economic and operating viability of the project. All other exploration costs, including geological and geophysical costs, other dry hole costs and annual lease rentals to explore for or use oil and natural gas, are expensed as incurred. Capitalized costs of proved oil and gas properties are amortized on a unit-of-production method based on volumes produced and reserves. Management estimates future dismantlement costs for oil and gas properties with reference to engineering estimates after taking into consideration the anticipated method of dismantlement required in accordance with the industry practices and the future cash flows are adjusted to reflect such risks specific to the liability, as appropriate. These estimated future dismantlement costs are discounted at a pre-tax risk-free rate and are capitalized as oil and gas properties, which are subsequently amortized as part of the costs of the oil and gas properties. (h) Lease prepayments Lease prepayments represent land use rights paid to the relevant government authorities. Land use rights are carried at cost less accumulated amount charged to expense and impairment losses (Note 2(o)). The cost of lease prepayments is charged to expense on a straight-line basis over the respective periods of the rights. (i) Construction in progress Construction in progress represents buildings, oil and gas properties, various plant and equipment under construction and pending installation, and is stated at cost less impairment losses (Note 2(o)). Cost comprises direct costs of construction as well as interest charges, and foreign exchange differences on related borrowed funds to the extent that they are regarded as an adjustment to interest charges, during the periods of construction. Construction in progress is transferred to property, plant and equipment when the asset is substantially ready for its intended use. No depreciation is provided in respect of construction in progress. (j) Goodwill Goodwill represents amounts arising on acquisition of subsidiaries, associates or joint ventures. Goodwill represents the difference between the cost of acquisition and the fair value of the net identifiable assets acquired. Prior to January 1, 2008, the acquisition of the non-controlling interests of a consolidated subsidiary was accounted for using the acquisition method whereby the difference between the cost of acquisition and the fair value of the net identifiable assets acquired (on a proportionate share) was recognized as goodwill. From January 1, 2008, any difference between the amount by which the non-controlling interest is adjusted (such as through an acquisition of the non-controlling interests) and the cash or other considerations paid is recognized in equity. Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business combination is allocated to each cash-generating unit, or groups of cash-generating units, that is expected to benefit the synergies of the combination and is tested annually for impairment (Note 2(o)). In respect of associates or joint ventures, the carrying amount of goodwill is included in the carrying amount of the interest in the associates or joint ventures and the investment as a whole is tested for impairment whenever there is objective evidence of impairment (Note 2(o)). (k) Financial assets (i) Classification and measurement The Group classifies financial assets into different categories depending on the business model for managing the financial assets and the contractual terms of cash flows of the financial assets: a) financial assets measured at amortized cost, b) financial assets measured at fair value through other comprehensive income, c) financial assets measured at fair value through profit or loss. A contractual cash flow characteristic which could have only a de minimis effect, or could have an effect that is more than de minimis but is not genuine, does not affect the classification of the financial asset. Financial assets are initially recognized at fair value. For financial assets measured at fair value through profit or loss, the relevant transaction costs are recognized in profit or loss. The transaction costs for other financial assets are included in the initially recognized amount. Trade accounts receivable and bills receivable arising from sale of goods or rendering services, without significant financing component, are initially recognized based on the transaction price expected to be entitled by the Group. Debt instruments Debt instruments held by the Group mainly includes cash and cash equivalents, time deposits with financial institutions, receivables. These financial assets are measured at amortized cost. The business model for managing such financial assets by the Group are held for collection of contractual cash flows. The contractual cash flow characteristics are to give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount out-standing. Interest income from these financial assets is recognized using the effective interest rate method Equity instruments Equity instruments that the Group has no power to control, jointly control or exercise significant influence over, are measured at fair value through profit or loss and presented in financial assets at fair value through profit or loss. In addition, the Group designates some equity instruments that are not held for trading as financial assets at fair value through other comprehensive income, are presented in financial assets at fair value through other comprehensive income. The relevant dividends of these financial assets are recognized in profit or loss. When derecognized, the cumulative gain or loss previously recognized in other comprehensive income is transferred to retained earnings. (ii) Impairment The Group recognizes a loss allowance for expected credit losses on a financial asset that is measured at amortized cost. The Group measures and recognizes expected credit losses, considering reasonable and supportable information about the relevant past events, current conditions and forecasts of future economic conditions. The Group measures the expected credit losses of financial instruments on different stages at each balance sheet date. For financial instruments that have no significant increase in credit risk since the initial recognition, on first stage, the Group measures the loss allowance at an amount equal to 12-month expected credit losses. If there has been a significant increase in credit risk since the initial recognition of a financial instrument but credit impairment has not occurred, on second stage, the Group recognizes a loss allowance at an amount equal to lifetime expected credit losses. If credit impairment has occurred since the initial recognition of a financial instrument, on third stage, the Group recognizes a loss allowance at an amount equal to lifetime expected credit losses. For financial instruments that have low credit risk at the balance sheet date, the Group assumes that there is no significant increase in credit risk since the initial recognition, and measures the loss allowance at an amount equal to 12-month expected credit losses. For financial instruments on the first stage and the second stage, and that have low credit risk, the Group calculates interest income according to carrying amount without deducting the impairment allowance and effective interest rate. For financial instruments on the third stage, interest income is calculated according to the carrying amount minus amortized cost after the provision of impairment allowance and effective interest rate. For receivables related to revenue, the Group measures the loss allowance at an amount equal to lifetime expected credit losses. The Group recognizes the loss allowance accrued or written back in profit or loss. (iii) Derecognition The Group derecognizes a financial asset when: a) the contractual right to receive cash flows from the financial asset expires; b) the Group transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset; c) the financial asset has been transferred and the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, but the Group has not retained control. On derecognition of financial assets at fair value through other comprehensive income, the difference between the carrying amounts and the sum of the consideration received and any accumulated gain or loss previously recognized in other comprehensive income, is recognized in retained earnings. While on derecognition of other financial assets, this difference is recognized in profit or loss. (iv) Accounting policy applied until December 31, 2017 Classification Until December 31, 2017, the group classified its financial assets in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depended on the purpose for which the investments were acquired. Management determined the classification of its investments at initial recognition. Subsequent measurement The measurement at initial recognition did not change on adoption of IFRS 9. Subsequent to the initial recognition, loans and receivables and held-to-maturity investments were carried at amortized cost using the effective interest method. Available-for-sale financial assets and financial assets at fair value through profit or loss were subsequently carried at fair value. Gains or losses arising from changes in the fair value were recognized as follows: for financial assets at fair value through profit or loss - in profit or loss within other gains/(losses), for available-for-sale financial assets - in other comprehensive income. When securities classified as available-for-sale were derecognized or impaired, the accumulated gains or losses recognized in other comprehensive income were reclassified to the consolidated income statement. Impairment Trade accounts receivables, other receivables and investment in equity securities that do not have a quoted market price in an active market are reviewed at each balance sheet date to determine whether there is objective evidence of impairment. If any such evidence exists, an impairment loss is determined and recognized. The impairment loss is measured as the difference between the asset’s carrying amount and the estimated future cash flows, discounted at the current market rate of return for a similar financial asset where the effect of discounting is material, and is recognized as an expense in the consolidated income statement. Impairment losses for trade and other receivables are reversed through the consolidated income statement if in a subsequent period the amount of the impairment losses decreases. Impairment losses for equity securities carried at cost are not reversed. (l) Financial liabilities The Group, at initial recognition, classifies financial liabilities as either financial liabilities subsequently measured at amortized cost or financial liabilities at fair value through profit or loss. The Group’s financial liabilities are mainly financial liabilities measured at amortized cost, including bills payable, trade accounts payable, other payables, and loans, etc. These financial liabilities are initially measured at the amount of their fair value after deducting transaction costs and use the effective interest rate method for subsequent measurement. Where the present obligations of financial liabilities are completely or partially discharged, the Group derecognizes these financial liabilities or discharged parts of obligations. The differences between the carrying amounts and the consideration received are recognized in profit or loss. (m) Determination of fair value for financial instruments If there is an active market for financial instruments, the quoted price in the active market is used to measure fair values of the financial instruments. If no active market exists for financial instruments, valuation techniques are used to measure fair values. In valuation, the Group adopts valuation techniques that are applicable in the current situation and have sufficient available data and other information to support it, and selects input values that are consistent with the asset or liability characteristics considered by market participants in the transaction of relevant assets or liabilities, and gives priority to relevant observable input values. Use of unobservable input values where relevant observable input values cannot be obtained or are not practicable. (n) Derivative financial instruments and hedge accounting Derivative financial instruments are recognized initially at fair value. At each balance sheet date, the fair value is remeasured. The gain or loss on remeasurement to fair value is recognized immediately in profit or loss, except where the derivatives qualify for hedge accounting. Hedge accounting is a method which recognizes the offsetting effects on profit or loss (or other comprehensive income) of changes in the fair values of the hedging instrument and the hedged item in the same accounting period, to represent the effect of risk management activities. Hedged items are the items that expose the Group to risks of changes in future cash flows and that are designated as being hedged and that must be reliably measurable. The Group’s hedged items include a forecast transaction that is settled with an undetermined future market price and exposes the Group to risk of variability in cash flows, etc. A hedging instrument is a designated derivative whose changes in cash flows are expected to offset changes in cash flows of the hedged item. The hedging relationship meets all of the following hedge effectiveness requirements: (i) There is an economic relationship between the hedged item and the hedging instrument, which shares a risk and that gives rise to opposite changes in fair value that tend to offset each other. (ii) The effect of credit risk does not dominate the value changes that result from that economic relationship. (iii) The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item. However, that designation does not reflect an imbalance between the weightings of the hedged item and the hedging instrument. Cash flow hedges Cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with all, or a component of, a recognized asset or liability (such as all or some future interest payments on variable-rate debt) or a highly probable forecast transaction, and could affect profit or loss. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. As long as a cash flow hedge meets the qualifying criteria for hedge accounting, the separate component of equity associated with the hedged item (cash flow hedge reserve) is adjusted to the lower of the following (in absolute amounts): (i) The cumulative gain or loss on the hedging instrument from inception of the hedge; and (ii) The cumulative change in fair value (present value) of the hedged item (i.e. the present value of the cumulative change in the hedged expected future cash flows) from inception of the hedge. The gain or loss on the hedging instrument that is determined to be an effective hedge is recognized in other comprehensive income. The portion of the gain or loss on the hedging instrument that is determined to be an ineffective hedge is recognized in profit or loss. If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or a hedged forecast transaction for a non-financial asset or a nonfinancial liability becomes a firm commitment for which fair value hedge accounting is applied, the entity removes that amount from the cash flow hedge reserve and include it directly in the initial cost or other carrying amount of the asset or the liability. This is not a reclassification adjustment and hence it does not affect other comprehensive income. For cash flow hedges, other than those covered by the preceding policy statements, that amount is reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows affect profit or loss. If the amount that has been accumulated in the cash flow hedge reserve is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, the Group immediately reclassifies the amount that is not expected to be recovered into profit or loss. When the hedging relationship no longer meets the risk management objective on the basis of which it qualified for hedge accounting (ie the entity no longer pursues that risk management objective), or when a hedging instrument expires or is sold, terminated, exercised, or there is no longer an economic relationship between the hedged item and the hedging instrument or the effect of credit risk starts to dominate the value changes that result from that economic relationship or no longer meets the criteria for hedge accounting, the Group discontinues prospectively the hedge accounting treatments. If the hedged future cash flows are still expected to occur, that amount remains in the cash flow hedge reserve and is accounted for as cash flow hedges. If the hedged future cash flows are no longer expected to occur, that amount is immediately reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment. A hedged future cash flow that is no longer highly probable to occur may still be expected to occur, if the hedged future cash flows are still expected to occur, that amount remains in the cash flow hedge reserve and is accounted for as cash flow hedges. (o) Impairment of assets The carrying amounts of assets, including property, plant and equipment, construction in progress, lease prepayments and other assets, are reviewed at each balance sheet date to identify indicators that the assets may be impaired. These assets are tested for impairment whenever events or changes in circumstances indicate that their recorded carrying amounts may not be recoverable. When such a decline has occurred, the carrying amount is reduced to the recoverable amount. For goodwill, the recoverable amount is estimated at each balance sheet date. The recoverable amount is the greater of the fair value less costs to disposal and the value in use. In determining the value in use, expected future cash flows generated by the asset are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where an asset does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently (i.e. a cash-generating unit). The amount of the reduction is recognized as an expense in the consolidated statement of income. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to t |
SALES OF GOODS
SALES OF GOODS | 12 Months Ended |
Dec. 31, 2018 | |
SALES OF GOODS [abstract] | |
Disclosure of sales of goods | 3. SALES OF GOODS Sales of goods primarily represents revenue from the sales of crude oil, refined petroleum products, chemical products and natural gas. Years ended December 31, 2016 2017 2018 RMB RMB RMB Crude oil 336,732 421,585 519,910 Gasoline 508,912 600,113 711,236 Diesel 447,126 503,406 594,008 Basic chemical feedstock 154,992 205,722 250,884 Kerosene 88,195 115,739 168,823 Synthetic resin 91,518 107,633 124,618 Natural Gas 39,464 34,277 43,205 Synthetic fiber monomers and polymers 38,054 61,998 77,572 Others(i) 175,197 249,997 335,357 1,880,190 2,300,470 2,825,613 (i) Others are primarily liquefied petroleum gas and other refinery and chemical by-products and joint products. |
OTHER OPERATING REVENUES
OTHER OPERATING REVENUES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER OPERATING REVENUES [abstract] | |
Disclosure of other operating revenues | 4. OTHER OPERATING REVENUES Years ended December 31, 2016 2017 2018 RMB RMB RMB Sale of materials and others 49,812 58,930 64,503 Rental income 909 793 1,063 50,721 59,723 65,566 |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES [abstract] | |
Disclosure of selling, general and administrative expenses | 5. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES The following items are included in selling, general and administrative expenses: Years ended December 31, 2016 2017 2018 RMB RMB RMB Operating lease charges 14,410 12,104 12,297 Auditor’s remuneration: - audit services 73 72 94 - others 2 5 9 Impairment losses - trade accounts receivable 230 (51) 6 - other receivables (12) 159 9 - accounts prepayments 13 2 29 |
PERSONNEL EXPENSES
PERSONNEL EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
PERSONNEL EXPENSES [abstract] | |
Disclosure of personnel expenses | 6. PERSONNEL EXPENSES Years ended December 31, 2016 2017 2018 RMB RMB RMB Salaries, wages and other benefits 55,502 65,873 68,425 Contributions to retirement schemes (Note 35) 8,385 8,981 9,296 63,887 74,854 77,721 |
TAXES OTHER THAN INCOME TAX
TAXES OTHER THAN INCOME TAX | 12 Months Ended |
Dec. 31, 2018 | |
TAXES OTHER THAN INCOME TAX [abstract] | |
Disclosure of taxes other than income tax | 7. TAXES OTHER THAN INCOME TAX Years ended December 31, 2016 2017 2018 RMB RMB RMB Consumption tax (i) 193,836 192,907 201,901 City construction tax (ii) 18,155 18,274 18,237 Education surcharge 13,695 13,811 13,187 Resources tax 3,871 4,841 6,021 Other 2,449 5,459 7,152 232,006 235,292 246,498 Note: (i) Consumption tax was levied based on sales quantities of taxable products, tax rate of products is presented as below: Effective from January 13, 2015 Products RMB/Ton Gasoline 2,109.76 Diesel 1,411.20 Naphtha 2,105.20 Solvent oil 1,948.64 Lubricant oil 1,711.52 Fuel oil 1,218.00 Jet fuel oil 1,495.20 (ii) City construction tax is levied on an entity based on its total paid amount of value-added tax, consumption tax and business tax. Pursuant to the ‘Circular on the Overall Promotion of Pilot Program of Levying VAT in place of Business Tax’ (Cai Shui [2016] 36) jointly issued by the Ministry of Finance and the State Administration of Taxation, revenue from modern service of the subsidiaries of the Group, are subject to VAT from May 1, 2016, and the applicable tax rate is 6%. Before May 1, 2016, revenue from modern service of the subsidiaries of the Group, are subject to the business tax with a tax rate of 3% to 5%. |
OTHER OPERATING INCOME_(EXPENSE
OTHER OPERATING INCOME/(EXPENSE), NET | 12 Months Ended |
Dec. 31, 2018 | |
OTHER OPERATING INCOME/(EXPENSE), NET [abstract] | |
OTHER OPERATING INCOME/(EXPENSE), NET | 8. OTHER OPERATING INCOME/(EXPENSE), NET Years ended December 31, 2016 2017 2018 RMB RMB RMB Government grant (i) 4,101 4,893 7,539 Ineffective portion of change in fair value of cash flow hedges 304 (813) (1,978) Net realized and unrealized gain/(loss) on derivative financial instruments not qualified as hedging 195 (909) 191 Impairment losses on long-lived assets (ii) (16,425) (21,258) (6,281) Loss on disposal of property, plant, equipment and other non-currents assets, net (1,489) (1,518) (1,526) Fines, penalties and compensations (152) (89) (276) Donations (133) (152) (180) Gain on remeasurement of interests in the Shanghai SECCO (Note 33) — 3,941 — Gain on dilution and remeasurement of interests in the Pipeline Ltd 20,562 — — Others (1,277) (649) (2,849) 5,686 (16,554) (5,360) Note: (i) Government grants for the years ended December 31, 2016, 2017 and 2018 primarily represent financial appropriation income and non-income tax refunds received from respective government agencies without conditions or other contingencies attached to the receipts of the grants. (ii) Impairment losses recognized on long-lived assets of the exploration and production (“E&P”) segments were RMB 11,605, RMB 13,556 and RMB 4,274 for the years ended December 31, 2016, 2017 and 2018, respectively. The impairment comprised RMB 10,594, RMB 12,611 and RMB 4,274 on property, plant and equipment for the three years respectively, RMB 907 on investment in joint venture for the year ended December 31, 2017, RMB 1,005 and RMB 21 on construction in progress for the years ended December 31, 2016 and 2017, RMB 6 on goodwill for the year ended December 31, 2016, and RMB 17 on available for sale financial assets for the year ended December 31, 2017. The primary factor resulting in the E&P segment impairment loss for the years ended December 31, 2018 was downward revision of oil and gas reserve in certain fields. The carrying values of these E&P properties were written down to respective recoverable amounts which were determined based on the present values of the expected future cash flows of the asset using a pre-tax discount rate of 10.47%, 10.47% and 10.47% for the years ended December 31, 2016, 2017 and 2018, respectively. Further future downward revisions to the Group’s oil price outlook would lead to further impairments which, in aggregate, are likely to be material. It is estimated that a general decrease of 5% in oil price, with all other variables held constant, would result in additional impairment loss on the Group’s properties, plant and equipment relating to oil and gas producing activities by approximately RMB 312. It is estimated that a general increase of 5% in operating cost, with all other variables held constant, would result in additional impairment loss on the Group’s properties, plant and equipment relating to oil and gas producing activities by approximately RMB 315. It is estimated that a general increase of 5% in discount rate, with all other variables held constant, would result in less impairment loss on the Group’s properties, plant and equipment relating to oil and gas producing activities by approximately RMB 5. The primary factors resulting in the E&P segment impairment loss for the years ended December 31, 2016 and 2017 were downward revision of oil and gas reserve due to price change and high operating and development cost for certain oil fields. Impairment losses recognized for the chemicals segment were RMB 2,898, RMB 4,922 and RMB 1,374 for the years ended December 31, 2016, 2017 and 2018, respectively, and comprised of impairment losses of RMB 2,840, RMB 4,779 and RMB 1,252 on property, plant and equipment for the years ended December 31, 2016, 2017 and 2018, respectively, RMB 58, RMB 143 and RMB 25 on construction in progress for the years ended December 31, 2016, 2017 and 2018, respectively, and RMB 97 on entrusted loans for the year ended December 31, 2018. Impairment losses recognized for the refining segment were RMB 1,655, RMB 1,894 and RMB 353 for the years ended December 31, 2016, 2017 and 2018, respectively, and comprised of impairment losses of RMB 1,245, RMB 1,836 and RMB 353 on property, plant and equipment for the years ended December 31, 2016, 2017 and 2018, respectively, RMB 410 and RMB 47 on construction in progress for the years ended December 31, 2016 and 2017, respectively, RMB 1 on intangible assets and RMB 10 for investment in associates for the year ended December 31, 2017. These impairment losses relate to certain refining and chemicals production facilities that are held for use for the years ended December 31, 2016, 2017 and 2018. The carrying values of these facilities were written down to their recoverable amounts that were primarily determined based on the asset held for use model using the present value of estimated future cash flows of the production facilities using the pre-tax discount rates for the years ended December 31, 2016, 2017 and 2018, respectively. The primary factor resulting in the impairment losses on long-lived assets of the refining and chemicals segment for the years ended December 31, 2016, 2017 and 2018, were due to the suspension of operations of certain production facilities. Evidence indicates the economic performance of certain production facilities are worse than expected also contributed to the written down of assets in the chemical segments for the years ended December 31, 2017 and 2018. Impairment losses recognized on long-lived assets of the marketing and distribution segment were RMB 267, RMB 675 and RMB 264 for the years ended December 31, 2016, 2017 and 2018 respectively. The impairment comprised of impairment losses of RMB 242, RMB 597 and RMB 254 on property, plant and equipment for the years ended December 31, 2016, 2017 and 2018, respectively, impairment losses of RMB 1, RMB 19 and RMB 7 on investments in associates and joint ventures for the years ended December 31, 2016, 2017 and 2018, respectively, impairment losses of RMB 13, RMB 41 and RMB 3 on construction in progress for the year ended December 31, 2016, 2017 and 2018, impairment losses of RMB 11 and RMB 12 on lease prepayments for the year ended December 31, 2016 and 2017, and impairment losses of RMB 6 on intangible assets for the year ended December 31, 2017, primarily relate to certain service stations and certain construction in progress that were closed or abandoned during respective years. In measuring the amounts of impairment charges, the carrying amounts of these assets were compared to the present value of the expected future cash flows of the assets, as well as information about sales and purchases of similar properties in the same geographic area. Impairment loss recognized on long-lived assets of the corporate and others segment was RMB 211 and RMB 16 for the years ended December 31, 2017 and 2018. The impairment comprised of impairment loss of RMB 13 and RMB 16 on property, plant and equipment for the years ended December 31, 2017 and 2018, and impairment of RMB 198 on goodwill for the year ended December 31, 2017. |
INTEREST EXPENSE
INTEREST EXPENSE | 12 Months Ended |
Dec. 31, 2018 | |
INTEREST EXPENSE [abstract] | |
Disclosure of interest expense | 9. INTEREST EXPENSE Years ended December 31, 2016 2017 2018 RMB RMB RMB Interest expense incurred 9,021 6,368 6,376 Less: Interest expense capitalized* (859) (723) (493) 8,162 5,645 5,883 Accretion expenses (Note 30) 1,057 1,501 1,438 Interest expense 9,219 7,146 7,321 * Interest rates per annum at which borrowing costs were capitalized for construction in progress 2.65% to 4.82% 2.37% to 4.41% 2.37% to 4.66% |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAX EXPENSE [abstract] | |
Disclosure of income tax expense | 10. INCOME TAX EXPENSE Income tax expense in the consolidated statement of income represents: Years ended December 31, 2016 2017 2018 RMB RMB RMB Current tax - Provision for the year 21,313 26,668 27,176 - Adjustment of prior years 228 (72) (719) Deferred taxation (Note 23) (834) (10,317) (6,244) 20,707 16,279 20,213 Reconciliation between actual income tax expense and the expected income tax expense at applicable statutory tax rates is as follows: Years ended December 31, 2016 2017 2018 RMB RMB RMB Earnings before income tax 80,151 86,697 99,110 Expected PRC income tax expense at a statutory tax rate of 25% 20,038 21,674 24,778 Tax effect of preferential tax rate (Note i) 83 (793) (1,259) Effect of income taxes at foreign operations 299 (1,394) 77 Tax effect of non-deductible expenses 1,529 1,905 2,351 Tax effect of non-taxable income (2,786) (5,939) (5,033) Tax effect of utilization of previously unrecognized tax losses and temporary differences (453) (613) (779) Tax effect of tax losses not recognized 958 1,485 609 Write-down of deferred tax assets 811 26 188 Adjustment of prior years 228 (72) (719) Actual income tax expense 20,707 16,279 20,213 Note: (i) The provision for PRC current income tax is based on a statutory income tax rate of 25% of the assessable income of the Group as determined in accordance with the relevant income tax rules and regulations of the PRC, except for certain entities of the Group in western regions in the PRC are taxed at preferential income tax rate of 15% through the year 2020. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2018 | |
OTHER COMPREHENSIVE INCOME [abstract] | |
Disclosure of other comprehensive income | 11. OTHER COMPREHENSIVE INCOME Years ended December 31, 2016 2017 2018 Before-tax Tax Net-of-tax Before-tax Tax Net-of-tax Before-tax Tax Net-of-tax amount effect amount amount effect amount amount effect amount RMB RMB RMB RMB RMB RMB RMB RMB RMB Cash flow hedges: Effective portion of changes in fair value of hedging instruments recognized during the year (3,813) 652 (3,161) (1,314) 240 (1,074) (12,500) 2,159 (10,341) Amounts transferred to initial carrying amount of hedged items 13 (2) 11 (4) 1 (3) — — — Reclassification adjustments for amounts transferred to the consolidated statement of income 6,279 (1,115) 5,164 (575) 72 (503) 730 (130) 600 Net movement during the year recognized in other comprehensive income (i) 2,479 (465) 2,014 (1,893) 313 (1,580) (11,770) 2,029 (9,741) Available-for-sale financial assets: Changes in fair value recognized during the year (17) (7) (24) (57) — (57) — — — Changes in the fair value of instruments at fair value through other comprehensive income — — — — — — (41) (12) (53) Net movement during the year recognized in other comprehensive income (17) (7) (24) (57) — (57) (41) (12) (53) Share of other comprehensive income/(loss) of associates and joint ventures 45 — 45 1,053 — 1,053 (240) 11 (229) Foreign currency translation differences 4,298 — 4,298 (3,792) — (3,792) 3,399 — 3,399 Other comprehensive income 6,805 (472) 6,333 (4,689) 313 (4,376) (8,652) 2,028 (6,624) (i) As of December 31, 2017 and 2018, cash flow hedge reserve amounted to losses of RMB 460 and 4,932, respectively, of which losses of RMB 510 and 4,917 were attribute to owners of the company. |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
BASIC AND DILUTED EARNINGS PER SHARE [abstract] | |
Disclosure of basic and diluted earnings per share | 12. BASIC AND DILUTED EARNINGS PER SHARE The calculation of basic earnings per share for the years ended December 31, 2016, 2017 and 2018 is based on the net income attributable to ordinary owners of the Company of RMB 46,672, RMB 51,244 and RMB 61,618, respectively, and the weighted average number of shares of 121,071,209,646, 121,071,209,646 and 121,071,209,646, respectively. The calculation of diluted earnings per share for the years ended December 31, 2016, 2017 and 2018 is based on the net income attributable to ordinary owners of the Company (diluted) of RMB 46,669, RMB 51,242 and RMB 61,618, respectively, and the weighted average number of shares of 121,071,209,646, 121,071,209,646 and 121,071,209,646, respectively, calculated as follows: (i) Net income attributable to ordinary owners of the Company (diluted) 2016 2017 2018 RMB RMB RMB Net income attributable to ordinary owners of the Company 46,672 51,244 61,618 After tax effect of employee share option scheme of Shanghai Petrochemical (3) (2) — Net income attributable to ordinary owners of the Company (diluted) 46,669 51,242 61,618 (ii) Weighted average number of shares (diluted) 2016 2017 2018 Number of Number of Number of shares shares shares Weighted average number of shares as of December 31 121,071,209,646 121,071,209,646 121,071,209,646 Weighted average number of shares (diluted) as of December 31 121,071,209,646 121,071,209,646 121,071,209,646 |
FINANCIAL ASSETS AT FAIR VALUE
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS [abstract] | |
Disclosure of financial assets at fair value through profit or loss | 13. December 31, 2017 2018 RMB RMB Structured deposit 51,196 25,550 Equity investments, listed and at quoted market price — 182 51,196 25,732 The financial assets are the structured deposit with financial institutions, which are presented as current assets since they are expected to be expired within 12 months from the end of the reporting period. |
DERIVATIVES FINANCIAL ASSETS AN
DERIVATIVES FINANCIAL ASSETS AND DERIVATIVES FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
DERIVATIVES FINANCIAL ASSETS AND DERIVATIVES FINANCIAL LIABILITIES | |
Disclosure of derivatives financial assets and derivatives financial liabilities | 14. DERIVATIVES FINANCIAL ASSETS AND DERIVATIVES FINANCIAL LIABILITIES Derivative financial assets and derivative financial liabilities of the Group are primarily commodity futures and swaps. See Note 38. |
TRADE ACCOUNTS RECEIVABLE AND B
TRADE ACCOUNTS RECEIVABLE AND BILLS RECEIVABLE | 12 Months Ended |
Dec. 31, 2018 | |
TRADE ACCOUNTS RECEIVABLE AND BILLS RECEIVABLE [abstract] | |
Disclosure of trade accounts receivable and bills receivable | 15. TRADE ACCOUNTS RECEIVABLE AND BILLS RECEIVABLE December 31, 2017 2018 RMB RMB Amounts due from third parties 56,203 50,108 Amounts due from Sinopec Group Company and fellow subsidiaries 7,941 3,170 Amounts due from associates and joint ventures 4,962 4,321 69,106 57,599 Less: Impairment losses for bad and doubtful debts (612) (606) Trade accounts receivable, net 68,494 56,993 Bills receivable 16,207 7,886 84,701 64,879 The ageing analysis of trade accounts and bills receivables (net of impairment losses for bad and doubtful debts) is as follows: December 31, 2017 2018 RMB RMB Within one year 83,984 64,317 Between one and two years 573 353 Between two and three years 43 124 Over three years 101 85 84,701 64,879 Impairment losses for bad and doubtful debts are analyzed as follows: 2016 2017 2018 RMB RMB RMB Balance as of January 1 525 683 612 Provision for the year 238 49 83 Written back for the year (8) (100) (77) Written off for the year (72) (21) (19) Others — 1 7 Balance as of December 31 683 612 606 Sales are generally on a cash term. Credit is generally only available for major customers with well-established trading records. Amounts due from Sinopec Group Company and fellow subsidiaries are repayable under the same terms. Trade accounts receivable and bills receivables (net of impairment losses for bad and doubtful debts) primarily represent receivables that are neither past due nor impaired. These receivables relate to a wide range of customers for whom there is no recent history of default. Information about the impairment of trade accounts receivable and the Group’s exposure to credit risk can be found in Note 38. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES [abstract] | |
Disclosure of inventories | 16. INVENTORIES December 31, 2017 2018 RMB RMB Crude oil and other raw materials 85,975 85,469 Work in progress 14,774 13,690 Finished goods 84,448 88,929 Spare parts and consumables 2,651 2,872 187,848 190,960 Less: Allowance for diminution in value of inventories (1,155) (6,376) 186,693 184,584 Allowance for diminution in value of inventories is analyzed as follows: 2016 2017 2018 RMB RMB RMB Balance as of January 1 4,402 920 1,155 Allowance for the year 430 436 5,535 Reversal of allowance on disposal (10) (13) (114) Written off (4,021) (190) (217) Other increase 119 2 17 Balance as of December 31 920 1,155 6,376 During the years ended December 31, 2016, 2017 and 2018, costs of inventories recognized as an expense in the consolidated statement of income were RMB 1,461,285, RMB 1,854,629, and RMB 2,366,199, respectively. Such costs include the write-down of inventories of RMB 430, RMB 436, and RMB 5,535, respectively, and the reversal of write-down of inventories of RMB 10, RMB 13 and RMB 114, respectively. The write-down of inventories and the reversal of write-down of inventories were recorded in purchased crude oil, products and operating supplies and expenses in the consolidated statement of income. The write-down of inventories which were realized primarily with the sales of inventories for the year ended December 31, 2016, 2017 and 2018 were RMB 4,021, RMB 190 and RMB 217. The write-down of inventories for the year ended December 31, 2018 is mainly related to crude oil, finished goods and work in progress of refined oil products and chemical products. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [abstract] | |
Disclosure of prepaid expenses and other current assets | 17. PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2017 2018 RMB RMB Other receivables 17,704 26,455 Advances to suppliers 4,901 5,937 Value-added input tax to be deducted 17,926 21,331 Prepaid income tax 398 300 40,929 54,023 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT [abstract] | |
Disclosure of property, plant and equipment | 18. PROPERTY, PLANT AND EQUIPMENT Oil and Equipment, Plants and gas machinery buildings properties and others Total RMB RMB RMB RMB Cost: Balance as of January 1, 2017 114,920 650,685 892,936 1,658,541 Additions 854 1,627 11,983 14,464 Transferred from construction in progress 6,789 19,881 54,605 81,275 Reclassifications (673) (50) 723 — Reclassification to lease prepayments and other long-term assets (859) (1,702) (8,751) (11,312) Disposals (878) (211) (10,985) (12,074) Exchange adjustments (140) (2,573) (199) (2,912) Balance as of December 31, 2017 120,013 667,657 940,312 1,727,982 Balance as of January 1, 2018 120,013 667,657 940,312 1,727,982 Additions 221 1,567 3,856 5,644 Transferred from construction in progress 3,741 24,366 45,103 73,210 Reclassifications 1,634 138 (1,772) — Reclassification to lease prepayments and other long-term assets (483) — (3,828) (4,311) Disposals (3,183) (146) (18,323) (21,652) Exchange adjustments 98 2,142 147 2,387 Balance as of December 31, 2018 122,041 695,724 965,495 1,783,260 Accumulated depreciation: Balance as of January 1, 2017 48,572 435,561 483,814 967,947 Depreciation for the year 4,075 55,057 46,585 105,717 Impairment losses for the year 554 8,832 10,450 19,836 Reclassifications (122) (77) 199 — Reclassification to lease prepayments and other long-term assets (238) (1,305) (2,682) (4,225) Disposals (584) (195) (9,079) (9,858) Exchange adjustments (57) (2,056) (96) (2,209) Balance as of December 31, 2017 52,200 495,817 529,191 1,077,208 Balance as of January 1, 2018 52,200 495,817 529,191 1,077,208 Depreciation for the year 4,038 48,616 47,250 99,904 Impairment losses for the year 274 4,027 1,848 6,149 Reclassifications 494 76 (570) — Reclassification to lease prepayments and other long-term assets (120) — (1,390) (1,510) Disposals (1,795) (125) (16,331) (18,251) Exchange adjustments 43 1,877 78 1,998 Balance as of December 31, 2018 55,134 550,288 560,076 1,165,498 Net book value: Balance as of January 1, 2017 66,348 215,124 409,122 690,594 Balance as of December 31, 2017 67,813 171,840 411,121 650,774 Balance as of December 31, 2018 Note: The additions to the oil and gas properties of the Group for the years ended December 31, 2017 and 2018 included RMB 1,627 and RMB 1,567 respectively, of the estimated dismantlement costs for site restoration (Note 30). As of December 31, 2017 and 2018, the Group had no individually significant fixed assets which were pledged. As of December 31, 2017 and 2018, the Group had no individually significant fixed assets which were temporarily idle or pending for disposal. As of December 31, 2017 and 2018, the Group had no individually significant fully depreciated fixed assets which were still in use. |
CONSTRUCTION IN PROGRESS
CONSTRUCTION IN PROGRESS | 12 Months Ended |
Dec. 31, 2018 | |
CONSTRUCTION IN PROGRESS [abstract] | |
Disclosure of construction in progress | 19. CONSTRUCTION IN PROGRESS 2017 2018 RMB RMB Balance as of January 1 129,581 118,645 Additions 85,552 108,555 Dry hole costs written off (6,876) (6,921) Transferred to property, plant and equipment (81,229) (73,210) Reclassification to lease prepayments and other long-term assets (7,773) (10,066) Impairment losses for the year (252) (28) Disposals (315) (19) Exchange adjustments (43) 7 Balance as of December 31 118,645 136,963 Net changes in capitalized cost of exploratory wells included in the Group’s construction in progress in the E&P segment are analyzed as follows: 2016 2017 2018 RMB RMB RMB At beginning of year 16,772 12,192 9,737 Additions, net of amount that were capitalized and subsequently expensed in the same year, pending the determination of proved reserves 6,321 5,567 7,172 Transferred to oil and gas properties based on the determination of proved reserves (3,716) (1,839) (2,387) Dry hole costs written off (7,185) (6,183) (7,226) At end of year 12,192 9,737 7,296 Aging of capitalized exploratory well costs based on the date the drilling was completed are analyzed as follows: December 31, 2016 2017 2018 RMB RMB RMB One year or less 4,731 4,917 3,467 Over one year 7,461 4,820 3,829 12,192 9,737 7,296 Capitalized exploratory wells costs aged over one year are related to wells for which the drilling results are being further evaluated or the development plans are being formulated. The geological and geophysical costs paid during the years ended December 31, 2016, 2017 and 2018 amounted to RMB 2,899, RMB 3,710 and RMB3,511, respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL [abstract] | |
Disclosure of goodwill | 20. GOODWILL December 31, 2017 2018 RMB RMB Cost 16,495 16,537 Less: Accumulated impairment losses (7,861) (7,861) 8,634 8,676 Impairment tests for cash-generating units containing goodwill Goodwill is allocated to the following Group’s cash-generating units: December 31, Principal activities 2017 2018 RMB RMB Sinopec Beijing Yanshan Petrochemical Branch (“Sinopec Yanshan”) Manufacturing of intermediate petrochemical products and petroleum products 1,004 1,004 Sinopec Zhenhai Refining and Chemical Branch (“Sinopec Zhenhai”) Manufacturing of intermediate petrochemical products and petroleum products 4,043 4,043 Shanghai SECCO Petrochemical Company Limited ("Shanghai SECCO")(Note 33) Production and sale of petrochemical products 2,541 2,541 Sinopec (Hong Kong) Limited Trading of petrochemical products 879 921 Other units without individually significant goodwill 167 167 8,634 8,676 Goodwill represents the excess of the cost of purchase over the fair value of the underlying assets and liabilities. The recoverable amounts of the above cash generating units are determined based on value in use calculations. These calculations use cash flow projections based on financial budgets approved by management covering a one-year period and pre-tax discount rates primarily ranging from 10.8% to 11.4% and 11.7% to 12.3% for the years ended December 31, 2017 and 2018, respectively. Cash flows beyond the one-year period are maintained constant. Based on the estimated recoverable amount, no major impairment loss was recognized. Key assumptions used for cash flow forecasts for these entities are the gross margin and sales volume. Management determined the budgeted gross margin based on the gross margin achieved in the period immediately before the budget period and management’s expectation on the future trend of the prices of crude oil and petrochemical products. The sales volume was based on the production capacity and/or the sales volume in the period immediately before the budget period. |
INTEREST IN ASSOCIATES
INTEREST IN ASSOCIATES | 12 Months Ended |
Dec. 31, 2018 | |
INTEREST IN ASSOCIATES [abstract] | |
Disclosure of interest in associates | 21. INTEREST IN ASSOCIATES The Group’s investments in associates are with companies primarily engaged in the oil and gas, petrochemical, and marketing and distribution operations in the PRC. The Group’s principal associates are as follows: Percentage Particulars Percentage of equity Form of of issued of equity held by the business and paid held by the Company’s Principal Country of Principal place Name of company structure up capital Company subsidiaries activities incorporation of business % % Sinopec Sichuan to East China Gas Pipeline Co., Ltd. ("Pipeline Ltd") Incorporated Registered capital RMB 200 million — 50.00 Operation of natural gas pipelines and auxiliary facilities PRC PRC Sinopec Finance Company Limited ("Sinopec Finance") Incorporated Registered capital RMB 18,000 million 49.00 — Provision of non-banking financial services PRC PRC PAO SIBUR Holding (“SIBUR”) Incorporated Registered capital RUB 21,784 million — 10.00 Processing natural gas and manufacturing petrochemical products Russia Russia Zhongtian Synergetic Energy Company Limited ("Zhongtian Synergetic Energy") Incorporated Registered capital RMB 17,516 million — 38.75 Mining coal and manufacturing of coal-chemical products PRC PRC Caspian Investments Resources Ltd. ("CIR") Incorporated Registered capital USD 10,000 — 50.00 Crude oil and natural gas extraction British Virgin Islands The Republic of Kazakhstan Summarized financial information and reconciliation to their carrying amounts in respect of the Group’s principal associates: Zhongtian Pipeline Ltd Sinopec Finance SIBUR (i) Synergetic Energy CIR December 31, December 31, December 31, December 31, December 31, 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets 11,317 12,498 161,187 209,837 20,719 22,502 8,232 7,477 5,612 6,712 Non-current assets 40,972 39,320 17,782 16,359 158,938 170,796 51,553 49,961 1,673 1,828 Current liabilities (933) (1,020) (154,212) (200,402) (20,554) (23,293) (10,668) (7,252) (908) (961) Non-current liabilities (3,176) (3,026) (6) (332) (61,771) (58,628) (31,494) (31,436) (170) (673) Net assets 48,180 47,772 24,751 25,462 97,332 111,377 17,623 18,750 6,207 6,906 Net assets attributable to owners of the Company 48,180 47,772 24,751 25,462 96,761 110,860 17,623 18,750 6,207 6,906 Net assets attributable to non-controlling interests — — — — 571 517 — — — — Share of net assets from associates 24,090 23,886 12,128 12,476 9,676 11,086 6,829 7,266 3,104 3,453 Carrying Amounts 24,090 23,886 12,128 12,476 9,676 11,086 6,829 7,266 3,104 3,453 Summarized statement of comprehensive income Zhongtian Synergetic Year ended Pipeline Ltd (ii) Sinopec Finance SIBUR(i) Energy CIR December 31 2016 2017 2018 2016 2017 2018 2017 2018 2016 2017 2018 2016 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 191 5,644 4,746 2,442 3,542 4,536 52,496 59,927 — 3,569 12,235 2,205 2,563 2,856 Net income/(loss) for the year 51 2,543 2,022 1,526 1,536 1,868 9,601 10,400 — 123 1,142 (3,518) (610) 583 Other comprehensive (loss)/income — — — (175) (246) (157) (260) 6,410 — — — 662 (334) 116 Total comprehensive income/(loss) 51 2,543 2,022 1,351 1,290 1,711 9,341 16,810 — 123 1,142 (2,856) (944) 699 Dividends declared by associates 23 — 1,207 — — 490 221 271 — — — — — — Share of net income/(loss) from associates 26 1,272 1,011 748 753 915 960 1,040 — 48 443 (1,759) (305) 292 Share of other comprehensive (loss)/income from associates(ii) — — — (86) (121) (77) (26) 641 — — — 331 (167) 58 The share of net income for years ended December 31, 2016, 2017 and 2018 in all individually immaterial associates accounted for using equity method in aggregate were RMB 2,869, RMB 3,182 and RMB 3,550, respectively. The share of other comprehensive (loss)/income for the years ended December 31, 2016, 2017 and 2018 in all individually immaterial associates accounted for using equity method in aggregate were a loss of RMB 384, a gain of RMB 569 and a loss of RMB 844, respectively. The carrying amount as of December 31, 2017 and 2018 of all individually immaterial associates accounted for using equity method in aggregate were RMB 23,899 and RMB 31,370, respectively. Note: (i) Sinopec is able to exercise significant influence in SIBUR since Sinopec has a member in SIBUR’s Board of Director and has a member in SIBUR’s Management Board. (ii) Including foreign currency translation differences. |
INTEREST IN JOINT VENTURES
INTEREST IN JOINT VENTURES | 12 Months Ended |
Dec. 31, 2018 | |
INTEREST IN JOINT VENTURES [abstract] | |
Disclosure of interest in joint ventures | 22. INTEREST IN JOINT VENTURES The Group’s principal interests in joint ventures which are incorporated companies are as follows: Percentage of Particulars of Percentage of equity held by Principal Country of issued and paid equity held by the Company’s place of Name of company incorporation up capital the Company subsidiaries Principal activities business % % Fujian Refining & Petrochemical Company Limited (“FREP”) PRC Registered capital RMB 14,758 million — 50.00 Manufacturing refining oil products PRC BASF-YPC Company Limited (“BASF-YPC”) PRC Registered capital RMB 12,547 million 30.00 10.00 Manufacturing and distribution of petrochemical products PRC Taihu Limited (“Taihu”) Cyprus Registered capital USD 25,000 — 49.00 Crude oil and natural gas extraction Russia Yanbu Aramco Sinopec Refining Company Ltd. ("YASREF") Saudi Arabia Registered capital USD 1,560 million — 37.50 Petroleum refining and processing business Saudi Arabia Sinopec SABIC Tianjin Petrochemical Company Limited ("Sinopec SABIC Tianjin") PRC Registered capital RMB 9,796 million — 50.00 Manufacturing and distribution of petrochemical products PRC Summarized balance sheet and reconciliation to their carrying amounts in respect of the Group’s principal joint ventures: Sinopec SABIC FREP BASF-YPC Taihu YASREF Tianjin December 31, December 31, December 31, December 31, December 31, 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets Cash and cash equivalents 5,772 7,388 1,800 1,582 2,352 3,406 4,916 930 6,524 5,110 Other current assets 11,013 9,248 5,335 5,795 2,462 3,689 10,816 10,267 2,709 4,007 Total current assets 16,785 16,636 7,135 7,377 4,814 7,095 15,732 11,197 9,233 9,117 Non-current assets 19,740 19,271 12,075 11,086 7,978 9,216 51,553 51,873 13,248 13,990 Current liabilities Current financial liabilities (1,135) (1,200) (233) (725) (20) (59) (5,407) (4,806) (1,236) (500) Other current liabilities (5,049) (4,939) (1,982) (1,822) (1,914) (2,124) (11,864) (12,217) (4,546) (2,507) Total current liabilities (6,184) (6,139) (2,215) (2,547) (1,934) (2,183) (17,271) (17,023) (5,782) (3,007) Non-current liabilities Non-current financial liabilities (13,654) (12,454) (955) (218) (72) (72) (35,619) (32,364) (4,101) (3,651) Other non-current liabilities (236) (279) (19) (17) (2,686) (2,271) (890) (937) (41) (331) Total non-current liabilities (13,890) (12,733) (974) (235) (2,758) (2,343) (36,509) (33,301) (4,142) (3,982) Net assets 16,451 17,035 16,021 15,681 8,100 11,785 13,505 12,746 12,557 16,118 Net assets attributable to owners of the company 16,451 17,035 16,021 15,681 7,818 11,373 13,505 12,746 12,557 16,118 Net assets attributable to non-controlling interests — — — — 282 412 — — — — Share of net assets from joint ventures 8,226 8,518 6,409 6,272 3,831 5,573 5,064 4,780 6,279 8,059 Carrying Amounts 8,226 8,518 6,409 6,272 3,831 5,573 5,064 4,780 6,279 8,059 Summarized statement of comprehensive income Sinopec SABIC Year ended FREP BASF-YPC Taihu YASREF Tianjin December 31, 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 41,764 49,356 52,469 17,323 21,020 21,574 9,658 12,520 14,944 41,286 61,587 77,561 16,337 22,286 23,501 Depreciation, depletion and amortization (52) (16) (2,250) (2,275) (1,793) (1,521) (1,043) (715) (664) (2,754) (2,763) (2,823) (33) (36) (1,104) Interest income 130 208 157 19 36 41 40 142 141 33 45 101 30 104 169 Interest expense (929) (857) (647) (173) (71) (43) (113) (142) (151) (1,216) (1,382) (1,382) (245) (223) (167) Earning/(loss) before income tax 6,476 6,977 3,920 2,606 4,565 3,625 2,411 1,697 3,493 28 548 (1,569) 3,184 5,113 3,916 Tax expense (1,574) (1,699) (935) (648) (1,151) (897) (518) (553) (729) 56 57 (249) (783) (1,279) (993) Net income/(loss) for the year 4,902 5,278 2,985 1,958 3,414 2,728 1,893 1,144 2,764 84 605 (1,818) 2,401 3,834 2,923 Other comprehensive income/(loss) — — — — — — 1,851 25 921 647 (554) 1,059 — — — Total comprehensive income/(loss) 4,902 5,278 2,985 1,958 3,414 2,728 3,744 1,169 3,685 731 51 (759) 2,401 3,834 2,923 Dividends declared by joint ventures — 1,250 1,200 155 1,109 1,226 — — — — — — 300 1,375 — Share of net income/(loss) from joint ventures 2,451 2,639 1,493 783 1,366 1,091 895 541 1,307 31 227 (682) 1,201 1,917 1,462 Share of other comprehensive income/(loss) from joint ventures — — — — — — 875 12 435 243 (208) 397 — — — The share of net income for the years ended December 31, 2016, 2017 and 2018 in all individually immaterial joint ventures accounted for using equity method in aggregate were RMB 2,061, RMB 3,925 and RMB 2,052, respectively. The share of other comprehensive (loss)/income for the years ended December 31, 2016, 2017 and 2018 in all individually immaterial joint ventures accounted for using equity method in aggregate were a loss of RMB 934, a gain of RMB 994 and a loss of RMB 839, respectively. The carrying amount as of year ended December 31, 2017 and 2018 of all individually immaterial joint ventures accounted for using equity method in aggregate were RMB 21,552 and RMB 22,982, respectively. |
DEFERRED TAX ASSETS AND LIABILI
DEFERRED TAX ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
DEFERRED TAX ASSETS AND LIABILITIES [abstract] | |
Disclosure of deferred tax assets and liabilities | 23. DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets and deferred tax liabilities before offset are attributable to the items detailed in the table below: Assets Liabilities December 31, December 31, 2017 2018 2017 2018 RMB RMB RMB RMB Receivables and inventories 381 2,563 — — Payables 1,925 1,808 — — Cash flow hedges 165 1,131 (50) (27) Property, plant and equipment 14,150 15,427 (9,928) (8,666) Tax losses carried forward 2,325 3,709 — — Available-for-sale financial assets 117 — — — Financial assets at fair value through other comprehensive income — 117 — (1) Intangible assets 227 474 (563) (535) Others 180 174 (264) (428) Deferred tax assets/(liabilities) 19,470 25,403 (10,805) (9,657) As of December 31, 2017 and 2018, certain subsidiaries of the Company did not recognize deferred tax of deductible loss carried forward of RMB 20,821 and RMB18,308, respectively, of which RMB 5,938 and RMB 2,437 were incurred for the years ended December 31, 2017 and 2018, respectively, because it was not probable that the future taxable profits will be realized. These deductible tax losses carried forward of RMB 2,373, RMB 3,887, RMB 3,673, RMB 5,938 and RMB 2,437 will expire in 2019, 2020, 2021, 2022, 2023 and after, respectively. Periodically, management performed assessment on the probability that future taxable profit will be available over the period which the deferred tax assets can be realized or utilized. In assessing the probability, both positive and negative evidence was considered, including whether it is probable that the operations will have sufficient future taxable profits over the periods which the deferred tax assets are deductible or utilized and whether the tax losses result from identifiable causes which are unlikely to recur. During the years ended December 31, 2017 and 2018, write-down of deferred tax assets amounted to RMB 26 and RMB 188 (Note 10). Movements in the deferred tax assets and liabilities are as follows: Recognized in Recognized in Balance as of consolidated other Balance as of January 1, statement of comprehensive December 31, 2016 income income Others 2016 RMB RMB RMB RMB RMB Receivables and inventories 1,552 (1,505) 6 34 87 Payables 413 (22) — — 391 Cash flow hedges 250 — (465) — (215) Property, plant and equipment (9,131) 6,063 (392) 109 (3,351) Tax losses carried forward 5,883 (3,426) 20 — 2,477 Available-for-sale financial assets — (139) (7) 146 — Intangible assets 203 (1) — 58 260 Others 40 (136) — — (96) Net deferred tax (liabilities)/assets (790) 834 (838) 347 (447) Recognized in Recognized in Acquisition Balance as Balance as of consolidated other of of January 1, statement of comprehensive Shanghai December 31, 2017 income income Others SECCO 2017 RMB RMB RMB RMB RMB RMB Receivables and inventories 87 300 (5) (1) — 381 Payables 391 1,534 — — — 1,925 Cash flow hedges (215) 9 313 8 — 115 Property, plant and equipment (3,351) 8,475 287 (8) (1,181) 4,222 Tax losses carried forward 2,477 (135) (17) — — 2,325 Available-for-sale financial assets — 117 — — — 117 Intangible assets 260 (27) — — (569) (336) Others (96) 44 4 — (36) (84) Net deferred tax (liabilities)/assets (447) 10,317 582 (1) (1,786) 8,665 Balance as Recognized in Recognized in Balance as of consolidated other Transferred of January 1, statement of comprehensive from December 31, 2018 income income Others reserve 2018 RMB RMB RMB RMB RMB RMB Receivables and inventories 381 2,176 3 3 — 2,563 Payables 1,925 (117) — — — 1,808 Cash flow hedges 115 (10) 2,029 1 (1,031) 1,104 Property, plant and equipment 4,222 2,650 (130) 19 — 6,761 Tax losses carried forward 2,325 1,414 6 (36) — 3,709 Available-for-sale financial assets 117 — — (117) — — Financial assets at fair value through other comprehensive income — — (1) 117 — 116 Intangible assets (336) 273 — 2 — (61) Others (84) (142) (2) (26) — (254) Net deferred tax assets/(liabilities) 8,665 6,244 1,905 (37) (1,031) 15,746 |
LEASE PREPAYMENTS
LEASE PREPAYMENTS | 12 Months Ended |
Dec. 31, 2018 | |
LEASE PREPAYMENTS [abstract] | |
Disclosure of lease prepayments | 24. LEASE PREPAYMENTS 2017 2018 RMB RMB Cost: Balance as of January 1 68,467 75,728 Additions 2,614 249 Transferred from construction in progress 4,151 7,829 Transferred from other long-term assets 3,987 1,402 Reclassification to other assets (2,603) (544) Disposals (531) (152) Exchange adjustments (357) 219 Balance as of December 31 75,728 84,731 Accumulated amortization: Balance as of January 1 14,226 17,202 Amortization charge for the year 2,076 2,519 Transferred from other long-term assets 2,027 617 Reclassification to other assets (770) (154) Disposals (266) (31) Exchange adjustments (91) 64 Balance as of December 31 17,202 20,217 Net book value: 58,526 64,514 |
LONG-TERM PREPAYMENTS AND OTHER
LONG-TERM PREPAYMENTS AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
LONG-TERM PREPAYMENTS AND OTHER ASSETS [abstract] | |
Disclosure of long-term prepayments and other assets | 25. LONG-TERM PREPAYMENTS AND OTHER ASSETS December 31, 2017 2018 RMB RMB Operating rights of service stations 34,268 34,934 Long-term receivables from and prepayment to Sinopec Group Company and fellow subsidiaries 20,726 26,513 Prepayments for construction projects to third parties 4,999 5,502 Others (i) 21,989 24,459 Balance as of December 31 81,982 91,408 Note: (i) Others mainly comprise prepaid operating lease charges and catalyst expenditures. The cost of operating rights of service stations is charged to expense on a straight-line basis over the respective periods of the rights. The movement of operating rights of service stations is as follows: 2017 2018 RMB RMB Operating rights of service stations Cost: Balance as of January 1 36,908 48,613 Additions 11,837 3,948 Decreases (132) (345) Balance as of December 31 48,613 52,216 Accumulated amortization: Balance as of January 1 10,012 14,345 Additions 4,361 3,019 Decreases (28) (82) Balance as of December 31 14,345 17,282 Net book value as of December 31 34,268 34,934 |
SHORT-TERM AND LONG-TERM DEBTS
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2018 | |
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES [abstract] | |
Disclosure of short-term and long-term debts and loans from Sinopec Group Company and fellow subsidiaries | 26. SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES Short-term debts represent: December 31, 2017 2018 RMB RMB Third parties’ debts Short-term bank loans 31,105 17,088 RMB denominated 23,685 13,201 US Dollar denominated 7,420 3,887 Short-term other loans 299 300 RMB denominated 299 300 Current portion of long-term bank loans 1,402 12,074 RMB denominated 1,379 12,039 US Dollar denominated 23 35 Current portion of long-term corporate bonds 22,532 — RMB denominated 16,000 — US Dollar denominated 6,532 — 23,934 12,074 55,338 29,462 Loans from Sinopec Group Company and fellow subsidiaries Short-term loans 23,297 27,304 RMB denominated 1,706 3,061 US Dollar denominated 19,668 22,780 Hong Kong Dollar denominated 1,903 1,441 Euro denominated — 22 Singapore Dollar denominated 20 — Current portion of long-term loans 2,014 4,361 RMB denominated 2,014 4,361 25,311 31,665 80,649 61,127 The Group’s weighted average interest rates on short-term loans were 2.72% and 3.37% as of December 31, 2017 and 2018, respectively. The above borrowings are unsecured. Long-term debts represent: December 31, Interest rate and final maturity 2017 2018 RMB RMB Third parties’ debts Long-term bank loans RMB denominated Interest rates ranging from 1.08% to 4.66% per annum as of December 31, 2018 with maturities through 2033 25,644 31,025 US Dollar denominated Interest rates ranging from 1.55% to 4.29% per annum as of December 31, 2018 with maturities through 2031 192 109 25,836 31,134 Corporate bonds(i) RMB denominated Fixed interest rates ranging from 3.70% to 4.90% per annum as of December 31, 2018 with maturities through 2022 36,000 20,000 US Dollar denominated Fixed interest rates ranging from 3.13% to 4.25% per annum as of December 31, 2018 with maturities through 2043 17,902 11,951 53,902 31,951 Total third parties’ long-term debts 79,738 63,085 Less: Current portion (23,934) (12,074) 55,804 51,011 Long-term loans from Sinopec Group Company and fellow subsidiaries RMB denominated Interest rates ranging from interest free to 4.99% per annum as of December 31, 2018 with maturities through 2030 45,334 46,877 Less: Current portion (2,014) (4,361) 43,320 42,516 99,124 93,527 Short-term and long-term bank loans, short-term other loans and loans from Sinopec Group Company and fellow subsidiaries are primarily unsecured and carried at amortized cost. Note: (i) These corporate bonds are carried at amortized cost. As of December 31, 2018, RMB 11,951 (US Dollar denominated corporate bonds) are guaranteed by Sinopec Group Company. |
TRADE ACCOUNTS AND BILLS PAYABL
TRADE ACCOUNTS AND BILLS PAYABLE | 12 Months Ended |
Dec. 31, 2018 | |
TRADE ACCOUNTS AND BILLS PAYABLE [abstract] | |
Disclosure of trade accounts and bills payable | 27. TRADE ACCOUNTS AND BILLS PAYABLE December 31, 2017 2018 RMB RMB Amounts due to third parties 177,224 170,818 Amounts due to Sinopec Group Company and fellow subsidiaries 13,350 9,142 Amounts due to associates and joint ventures 9,499 6,381 200,073 186,341 Bills payable 6,462 6,416 Trade accounts and bills payable measured at amortized cost 206,535 192,757 |
CONTRACT LIABILITIES
CONTRACT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
CONTRACT LIABILITIES [abstract] | |
Disclosure of contract liabilities | 28. CONTRACT LIABILITIES As of December 31, 2017 and 2018, the Group’s contract liabilities primarily represent advances from customers. Related performance obligations are satisfied and revenue is recognized within one year. As of January 1, 2018, the Group’s contract liabilities was RMB 120,734, of which RMB 119,138 was recognized as revenue in 2018. |
OTHER PAYABLES
OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER PAYABLES | |
Disclosure of other payables | 29. OTHER PAYABLES December 31, 2017 2018 RMB RMB Salaries and welfare payable 7,162 7,312 Interest payable 723 634 Payables for constructions 60,010 54,992 Other payables 29,028 22,852 Financial liabilities carried at amortized costs 96,923 85,790 Taxes other than income tax 58,925 80,361 Receipts in advance (Note 1(a)) 120,734 — 276,582 166,151 |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2018 | |
PROVISIONS [abstract] | |
Disclosure of provisions | 30. PROVISIONS Provisions primarily represent provision for future dismantlement costs of oil and gas properties. The Group has mainly committed to the PRC government to establish certain standardized measures for the dismantlement of its oil and gas properties by making reference to the industry practices and is thereafter constructively obligated to take dismantlement measures of its oil and gas properties. Movement of provision of the Group’s obligations for the dismantlement of its oil and gas properties is as follows: 2016 2017 2018 RMB RMB RMB Balance as of January 1 33,115 36,918 39,407 Provision for the year 3,420 1,627 1,567 Accretion expenses 1,057 1,501 1,438 Utilized for the year (843) (467) (598) Exchange adjustments 169 (172) 193 Balance as of December 31 36,918 39,407 42,007 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
SHARE CAPITAL [abstract] | |
Disclosure of share capital | 31 . SHARE CAPITAL December 31, 2017 2018 RMB RMB Registered, issued and fully paid 95,557,771,046 listed A shares (2017: 95,557,771,046) of RMB 1.00 each 95,558 95,558 25,513,438,600 listed H shares (2017: 25,513,438,600) of RMB 1.00 each 25,513 25,513 121,071 121,071 The Company was established on February 25, 2000 with a registered capital of 68.8 billion domestic state-owned shares with a par value of RMB 1.00 each. Such shares were issued to Sinopec Group Company in consideration for the assets and liabilities transferred to the Company (Note 1). Pursuant to the resolutions passed at an Extraordinary General Meeting held on July 25, 2000 and approvals from relevant government authorities, the Company is authorized to increase its share capital to a maximum of 88.3 billion shares with a par value of RMB 1.00 each and offer not more than 19.5 billion shares with a par value of RMB 1.00 each to investors outside the PRC. Sinopec Group Company is authorized to offer not more than 3.5 billion shares of its shareholdings in the Company to investors outside the PRC. The shares sold by Sinopec Group Company to investors outside the PRC would be converted into H shares. In October 2000, the Company issued 15,102,439,000 H shares with a par value of RMB 1.00 each, representing 12,521,864,000 H shares and 25,805,750 American Depositary Shares (“ADSs”, each representing 100 H shares), at prices of HKD 1.59 per H share and USD 20.645 per ADS, respectively, by way of a global initial public offering to Hong Kong and overseas investors. As part of the global initial public offering, 1,678,049,000 state-owned ordinary shares of RMB 1.00 each owned by Sinopec Group Company were converted into H shares and sold to Hong Kong and overseas investors. In July 2001, the Company issued 2.8 billion listed A shares with a par value of RMB 1.00 each at RMB 4.22 by way of a public offering to natural persons and institutional investors in the PRC. During the year ended December 31, 2010, the Company issued 88,774 listed A shares with a par value of RMB 1.00 each, as a result of exercise of 188,292 warrants entitled to the Bonds with Warrants. During the year ended December 31, 2011, the Company issued 34,662 listed A shares with a par value of RMB 1.00 each, as a result of conversion by the holders of the 2011 Convertible Bonds. During the year ended December 31, 2012, the Company issued 117,724,450 listed A shares with a par value of RMB 1.00 each, as a result of conversion by the holders of the 2011 Convertible Bonds. On February 14, 2013, the Company issued 2,845,234,000 listed H shares (“the Placing”) with a par value of RMB 1.00 each at the Placing Price of HKD 8.45 per share. The aggregate gross proceeds from the Placing amounted to approximately HKD 24,042,227,300.00 and the aggregate net proceeds (after deduction of the commissions and estimated expenses) amounted to approximately HKD 23,970,100,618.00. In June 2013, the Company issued 21,011,962,225 listed A shares and 5,887,716,600 listed H shares as a result of bonus issues of 2 shares converted from the retained earnings and 1 share transferred from the share premium for every 10 existing shares. During the year ended December 31, 2013, the Company issued 114,076 listed A shares with a par value of RMB 1.00 each, as a result of conversion by the holders of the 2011 Convertible Bonds. During the year ended December 31, 2014, the Company issued 1,715,081,853 listed A shares with a par value of RMB 1.00 each, as a result of conversion by the holders of the 2011 Convertible Bonds. During the year ended December 31, 2015, the Company issued 2,790,814,006 listed A shares with a par value of RMB 1.00 each, as a result of conversion by the holders of the 2011 Convertible Bonds. All A shares and H shares rank pari passu in all material aspects. Capital management Management optimizes the structure of the Group’s capital, which comprises of equity and debts. In order to maintain or adjust the capital structure of the Group, management may cause the Group to issue new shares, adjust the capital expenditure plan, sell assets to reduce debt, or adjust the proportion of short-term and long-term loans. Management monitors capital on the basis of debt-to-capital ratio, which is calculated by dividing long-term loans (excluding current portion), including long-term debts and loans from Sinopec Group Company and fellow subsidiaries, by the total of equity attributable to owners of the Company and long-term loans (excluding current portion), and liability-to-asset ratio, which is calculated by dividing total liabilities by total assets. Management’s strategy is to make appropriate adjustments according to the Group’s operating and investment needs and the changes of market conditions, and to maintain the debt-to-capital ratio and the liability-to-asset ratio of the Group at a range considered reasonable. The debt-to-capital ratio of the Group was 12.0% and 11.5% as of December 31, 2017 and 2018, respectively. The liability-to-asset ratio of the Group was 46.5% and 46.2% as of December 31, 2017 and 2018, respectively. The schedule of the contractual maturities of loans and commitments are disclosed in Notes 26 and 32, respectively. There were no changes in the management’s approach to capital management of the Group during the year. Neither the Company nor any of its subsidiaries is subject to externally imposed capital requirements. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENT LIABILITIES [abstract] | |
Disclosure of commitments and contingent liabilities | 32. COMMITMENTS AND CONTINGENT LIABILITIES Operating lease commitments The Group leases land and buildings, service stations and other equipment through non-cancellable operating leases. These operating leases do not contain provisions for contingent lease rentals. None of the rental agreements contains escalation provisions that may require higher future rental payments. As of December 31, 2017 and 2018, the future minimum lease payments of the Group under operating leases are as follows: December 31, 2017 2018 RMB RMB Within one year 11,114 15,625 Between one and two years 11,492 14,668 Between two and three years 10,730 13,986 Between three and four years 10,552 13,734 Between four and five years 10,428 13,494 Thereafter 202,806 281,287 257,122 352,794 Capital commitments As of December 31, 2017 and 2018, the capital commitments of the Group are as follows: December 31, 2017 2018 RMB RMB Authorized and contracted for (i) 120,386 141,045 Authorized but not contracted for 57,997 54,392 178,383 195,437 These capital commitments relate to oil and gas exploration and development, refining and petrochemical production capacity expansion projects, the construction of service stations and oil depots and investment commitments. Note: (i) The investment commitments for the year ended December 31, 2017 and 2018 of the Group were RMB 3,364 and RMB 5,553 , respectively. Commitments to joint ventures Pursuant to certain of the joint venture agreements entered into by the Group, the Group is obliged to purchase products from the joint ventures based on market prices. Exploration and production licenses Exploration licenses for exploration activities are registered with the Ministry of Natural Resources. The maximum term of the Group’s exploration licenses is 7 years, and may be renewed twice within 30 days prior to expiration of the original term with each renewal being for a two-year term. The Group is obligated to make progressive annual minimum exploration investment relating to the exploration blocks in respect of which the license is issued. The Ministry of Natural Resources also issues production licenses to the Group on the basis of the reserve reports approved by relevant authorities. The maximum term of a full production license is 30 years unless a special dispensation is given by the State Council. The maximum term of production licenses issued to the Group is 80 years as a special dispensation was given to the Group by the State Council. The Group’s production license is renewable upon application by the Group 30 days prior to expiration. The Group is required to make payments of exploration license fees and production right usage fees to the Ministry of Natural Resources annually which are expensed. Expenses recognized were approximately RMB 333, RMB 308 and RMB 231 for the years ended December 31, 2016, 2017 and 2018, respectively. Estimated future annual payments are as follows: December 31, 2017 2018 RMB RMB Within one year 205 380 Between one and two years 83 79 Between two and three years 32 33 Between three and four years 28 28 Between four and five years 28 28 Thereafter 882 852 1,258 1,400 Contingent liabilities As of December 31, 2017 and 2018, guarantees by the group in respect of facilities granted to the parties below are as follows: December 31, 2017 2018 RMB RMB Joint ventures 940 5,033 Associates (ii) 13,520 12,168 Others 9,732 7,197 24,192 24,398 Management monitors the conditions that are subject to the guarantees to identify whether it is probable that a loss will occur, and recognizes any such losses under guarantees when those losses are reliably estimable. As of December 31, 2017 and 2018, it was not probable that the Group will be required to make payments under the guarantees. Thus no liability has been accrued for a loss related to the Group’s obligation under these guarantee arrangements. Note: (i) The Group provided a guarantee in respect to standby credit facilities granted to Zhongtian Synergetic Energy by banks amount to RMB 17,050. As of December 31, 2017 and 201 8 , the amount withdrawn by Zhongtian Synergetic Energy and guaranteed by the Group was RMB 13,520, RMB 12,168. Environmental contingencies Under existing legislation, management believes that there are no probable liabilities that will have a material adverse effect on the financial position or operating results of the Group. The PRC government, however, has moved, and may move further towards more rigorous enforcement of applicable laws, and towards the adoption of more stringent environmental standards. Environmental liabilities are subject to considerable uncertainties which affect management’s ability to estimate the ultimate cost of remediation efforts. These uncertainties include i) the exact nature and extent of the contamination at various sites including, but not limited to refineries, oil fields, service stations, terminals and land development areas, whether operating, closed or sold, ii) the extent of required cleanup efforts, iii) varying costs of alternative remediation strategies, iv) changes in environmental remediation requirements, and v) the identification of new remediation sites. The amount of such future cost is indeterminable due to such factors as the unknown magnitude of possible contamination and the unknown timing and extent of the corrective actions that may be required. Accordingly, the outcome of environmental liabilities under proposed or future environmental legislation cannot reasonably be estimated at present, and could be material. The Group paid normal routine pollutant discharge fees of approximately RMB 6,358, RMB 7,851 and RMB 7,940 in the consolidated financial statements for the years ended December 31, 2016, 2017 and 2018, respectively. Legal contingencies The Group is a defendant in certain lawsuits as well as the named party in other proceedings arising in the ordinary course of business. Management has assessed the likelihood of an unfavourable outcome of such contingencies, lawsuits or other proceedings and believes that any resulting liabilities will not have a material adverse effect on the financial position, operating results or cash flows of the Group. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2018 | |
BUSINESS COMBINATION [abstract] | |
Disclosure of business combination | 33. BUSINESS COMBINATION For the year ended December 31, 2018, significant business combination didn't occur in the Group. (a) Acquisition of Shanghai SECCO On October 26, 2017, a subsidiary of the Company, Gaoqiao Petrochemical Co., Ltd., purchased 50% equity interest in Shanghai SECCO from BP Chemicals East China Investment Limited with a cash consideration of RMB 10,135 ("the Transaction"). Before the Transaction, the Company and one of its subsidiaries held 30% and 20% equity interest in Shanghai SECCO, respectively. After the Transaction, the Company, together with its subsidiaries, hold 100% equity interest of Shanghai SECCO, which became a subsidiary of the Company. Shanghai SECCO is principally engaged in the production and sale of petrochemical products including acrylonitrile, polystyrene, polyethylene, etc. Based on the purchase price allocation performed, details of the purchase consideration, the net assets acquired and goodwill are as follows: RMB Purchase consideration Acquisition date(October 26, 2017) -Cash consideration for the purchase of 50% equity interest acquired 10,135 -Acquisition-date fair value of the 50% equity interest held before the acquisition 10,135 Total purchase consideration 20,270 The assets and liabilities recognized as a result of the acquisition are as follows: Fair value RMB Cash and cash equivalents 5,653 Trade accounts receivable, net 538 Bills receivable 641 Inventories 1,702 Prepaid expenses and other current assets 2,130 Total current assets 10,664 Property, plant and equipment, net 9,587 Construction in progress 231 Deferred tax assets 11 Lease prepayments 1,920 Long-term prepayments and other assets 1,134 Total non-current assets 12,883 Total assets 23,547 Trade accounts payables (2,092) Accrued expenses and other payables (1,517) Income tax payable (423) Total current liabilities (4,032) Deferred tax liabilities (Note 23) (1,786) Net assets acquired 17,729 Goodwill (Note 20) 2,541 The goodwill is attributable to the high profitability of the acquired business and synergy to be achieved post the Transaction among Shanghai SECCO and the Group’s existing petrochemical operations located in eastern China. As of Acquisition Date, a gain of RMB 3,941 was recognized as a result of remeauring the 50% equity interest held before the Transaction to its fair value, which is included in other operating (expense)/income in the Group's consolidated statement of income for the year ended December 31, 2017. Shanghai SECCO contributed revenue of RMB 5,222 and net profit of RMB 726 to the Group for the period from the Acquisition Date to December 31, 2017. If the acquisition had occurred on January 1, 2017, consolidated pro-forma revenue and profit for the year ended December 31, 2017 would have been RMB 2,365,632 and RMB 74,930 respectively. These amounts have been calculated using the subsidiary’s results and adjusting them for the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had applied from January 1, 2017, together with the consequential tax effects. (b) Acquisition of Gaoqiao Branch of SAMC Pursuant to the resolution passed at the Directors’ meeting on October 29, 2015, the Company entered into the JV Agreement with Sinopec Assets Management Corporation (“SAMC”) in relation to the formation of the Gaoqiao Petrochemical Co., Ltd. According to the JV Agreement, the Company and SAMC jointly set up Gaoqiao Petrochemical Co., Ltd. for RMB 100 in cash in 2016. Subsequently, the Company subscribed capital contribution with the net assets of Gaoqiao Branch of the Company and SAMC subscribed capital contribution with the net assets of Gaoqiao Branch of SAMC. The capital contribution was completed on June 1, 2016, after which the Company held 55% of Gaoqiao Petrochemical Co., Ltd.’s voting rights and became the parent company of Gaoqiao Petrochemical Co., Ltd. As Sinopec Group Company controls both the Group and SAMC, the non-cash transaction described above between Sinopec and SAMC has been accounted as business combination under the common control and it has been reflected in the accompanying consolidated financial statements as combination of entities under common control in a manner of predecessor value accounting. Accordingly, the assets and liabilities of Gaoqiao Branch of SAMC have been accounted for at historical cost, and the consolidated financial statements of the Group prior to these acquisitions have been restated to include the results of operation and the assets and liabilities of Gaoqiao Branch of SAMC on a combined basis. At the completion date, the non-controlling interests amount to RMB 2,137 was recognized in relation to SAMC’s 45% interest in Gaoqiao Branch of the Company. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS [abstract] | |
Disclosure of related party transactions | 34. RELATED PARTY TRANSACTIONS Parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control or jointly control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to control or common control. Related parties may be individuals (being members of key management personnel, significant shareholders and/or their close family members) or other entities and include entities which are under the significant influence of related parties of the Group where those parties are individuals, and post-employment benefit plans which are for the benefit of employees of the Group or of any entity that is a related party of the Group. (a) Transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures The Group is part of a larger group of companies under Sinopec Group Company, which is controlled by the PRC government, and has significant transactions and relationships with Sinopec Group Company and fellow subsidiaries. Because of these relationships, it is possible that the terms of these transactions are not the same as those that would result from transactions among wholly unrelated parties. The principal related party transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures, which were carried out in the ordinary course of business are as follows: Years ended December 31, Note 2016 2017 2018 RMB RMB RMB Sales of goods (i) 194,179 244,211 272,789 Purchases (ii) 118,242 165,993 192,224 Transportation and storage (iii) 1,333 7,716 7,319 Exploration and development services (iv) 27,201 21,210 23,489 Production related services (v) 10,816 20,824 28,472 Ancillary and social services (vi) 6,584 6,653 6,664 Operating lease charges for land (vii) 10,474 8,015 7,765 Operating lease charges for buildings (vii) 449 510 521 Other operating lease charges (vii) 456 626 869 Agency commission income (viii) 129 127 113 Interest income (ix) 209 807 848 Interest expense (x) 996 554 1,110 Net deposits (placed with)/withdrawn from related parties (ix) (21,770) (7,441) 6,457 Net funds (repaid to)/obtained from related parties (xi) (19,318) 19,661 31,684 The amounts set out in the table above in respect of each of the years in the three-year period ended December 31, 2018 represent the relevant costs and income as determined by the corresponding contracts with the related parties. There was no guarantee given to banks by the Group in respect of banking facilities to related parties as of December 31, 2017 and 2018, except for the guarantees disclosed in Note 32. The directors of the Company are of the opinion that the above transactions with related parties were conducted in the ordinary course of business and on normal commercial terms or in accordance with the agreements governing such transactions, and this has been confirmed by the independent non-executive directors. Notes: (i) Sales of goods represent the sale of crude oil, intermediate petrochemical products, petroleum products and ancillary materials. (ii) Purchases represent the purchase of materials and utility supplies directly related to the Group’s operations such as the procurement of raw and ancillary materials and related services, supply of water, electricity and gas. (iii) Transportation and storage represent the cost for the use of railway, road and marine transportation services, pipelines, loading, unloading and storage facilities. (iv) Exploration and development services comprise direct costs incurred in the exploration and development such as geophysical, drilling, well testing and well measurement services. (v) Production related services represent ancillary services rendered in relation to the Group’s operations such as equipment repair and general maintenance, insurance premium, technical research, communications, firefighting, security, product quality testing and analysis, information technology, design and engineering, construction of oilfield ground facilities, refineries and chemical plants, manufacture of replacement parts and machinery, installation, project management, environmental protection and management services. (vi) Ancillary and social services represent expenditures for social welfare and support services such as educational facilities, media communication services, sanitation, accommodation, canteens, property maintenance. (vii) Operating lease charges represent the rental paid to Sinopec Group Company for operating leases in respect of land, buildings and equipment. (viii) Agency commission income represents commission earned for acting as an agent in respect of sales of products and purchase of materials for certain entities owned by Sinopec Group Company. (ix) Interest income represents interest received from deposits placed with Sinopec Finance Company Limited and Sinopec Century Bright Capital Investment Limited, finance companies controlled by Sinopec Group Company. The applicable interest rate is determined in accordance with the prevailing saving deposit rate. The balance of deposits as of December 31, 2017 and 2018 were RMB 47 ,514 and RMB 41,057 , respectively. (x) Interest expense represents interest charges on the loans obtained from Sinopec Group Company and fellow subsidiaries. (xi) The Group obtained loans, discounted bills and others from Sinopec Group Company and fellow subsidiaries. In connection with the Reorganization, the Company and Sinopec Group Company entered into a number of agreements under which 1) Sinopec Group Company will provide goods and products and a range of ancillary, social and supporting services to the Group and 2) the Group will sell certain goods to Sinopec Group Company. These agreements impacted the operating results of the Group for the year ended December 31, 2018. The terms of these agreements are summarized as follows: · The Company has entered into a non-exclusive “Agreement for Mutual Provision of Products and Ancillary Services” (“Mutual Provision Agreement”) with Sinopec Group Company effective from January 1, 2000 in which Sinopec Group Company has agreed to provide the Group with certain ancillary production services, construction services, information advisory services, supply services and other services and products. While each of Sinopec Group Company and the Company is permitted to terminate the Mutual Provision Agreement upon at least six months notice, Sinopec Group Company has agreed not to terminate the agreement if the Group is unable to obtain comparable services from a third party. The pricing policy for these services and products provided by Sinopec Group Company to the Group is as follows: (1) the government-prescribed price; (2) where there is no government-prescribed price, the government-guidance price; (3) where there is neither a government-prescribed price nor a government-guidance price, the market price; or (4) where none of the above is applicable, the price to be agreed between the parties, which shall be based on a reasonable cost incurred in providing such services plus a profit margin not exceeding 6%. · The Company has entered into a non-exclusive “Agreement for Provision of Cultural and Educational, Health Care and Community Services” with Sinopec Group Company effective from January 1, 2000 in which Sinopec Group Company has agreed to provide the Group with certain cultural, educational, health care and community services on the same pricing terms and termination conditions as described in the above Mutual Provision Agreement. · The Company has entered into a series of lease agreements with Sinopec Group Company to lease certain lands and buildings effective on January 1, 2000. The lease term is 40 or 50 years for lands and 20 years for buildings, respectively. The Company and Sinopec Group Company can renegotiate the rental amount every three years for land. The Company and Sinopec Group Company can renegotiate the rental amount for buildings every year. However such amount cannot exceed the market price as determined by an independent third party. · The Company has entered into agreements with Sinopec Group Company effective from January 1, 2000 under which the Group has been granted the right to use certain trademarks, patents, technology and computer software developed by Sinopec Group Company. · The Company has entered into a service stations franchise agreement with Sinopec Group Company effective from January 1, 2000 under which its service stations and retail stores would exclusively sell the refined products supplied by the Group. · On the basis of a series of continuing connected transaction agreements signed in 2000, the Company and Sinopec Group Company have signed the Fifth Supplementary Agreement and the Fourth Revised Memorandum of land use rights leasing contract on August 24, 2018, which took effect on January 1, 2019 and made adjustment to "Mutual Supply Agreement", "Agreement for Provision of Cultural and Educational, Health Care and Community Services", "Buildings Leasing Contract", "Intellectual Property Contract" and "Land Use Rights Leasing Contract" etc.,. The memorandum was effective since January 1, 2019. Sinopec Group Company agreed to lease 410 million square meters of land to the Company, and to adjust the total fee of land to about RMB 14 billion, according to the newly confirmed area of leasing land and the situation of land market. Amounts due from/to Sinopec Group Company and fellow subsidiaries, associates and joint ventures included in the following accounts captions are summarized as follows: December 31, 2017 2018 RMB RMB Trade accounts receivable and bills receivable 13,174 7,555 Prepaid expenses and other current assets 5,633 7,665 Long-term prepayments and other assets 20,726 23,482 Total 39,533 38,702 Trade accounts payable and bills payable 24,104 17,530 Contract liabilities — 3,273 Other payables 20,990 18,160 Other long-term liabilities 10,165 12,470 Short-term loans and current portion of long-term loans from Sinopec Group Company and fellow subsidiaries 25,311 31,665 Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries 43,320 42,516 Total 123,890 125,614 Amounts due from/to Sinopec Group Company and fellow subsidiaries, associates and joint ventures, other than short-term loans and long-term loans, bear no interest, are unsecured and are repayable in accordance with normal commercial terms. The terms and conditions associated with short-term loans and long-term loans payable to Sinopec Group Company and fellow subsidiaries are set out in Note 26. The long-term borrowings mainly include an interest-free loan with a maturity period of 20 years amounting to RMB 35,560 from the Sinopec Group Company (a state-owned enterprise) through the Sinopec Finance. This borrowing is a special arrangement to reduce financing costs and improve liquidity of the Company during its initial global offering in 2000. As of and for the years ended December 31, 2017 and 2018, no individually significant impairment losses for bad and doubtful debts were recognized in respect of amounts due from Sinopec Group Company and fellow subsidiaries, associates and joint ventures. (b) Key management personnel emoluments Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, including directors and supervisors of the Group. The key management personnel compensation is as follows: Years ended December 31, 2016 2017 2018 RMB’000 RMB’000 RMB’000 Short-term employee benefits 5,648 5,344 5,745 Retirement scheme contributions 499 424 351 6,147 5,768 6,096 (c) Contributions to defined contribution retirement plans The Group participates in various defined contribution retirement plans organized by municipal and provincial governments for its staff. The details of the Group’s employee benefits plan are disclosed in Note 35. As of December 31, 2017 and 2018, the accrual for the contribution to post-employment benefit plans was not material. (d) Transactions with other state-controlled entities in the PRC The Group is a state-controlled energy and chemical enterprise and operates in an economic regime currently dominated by entities directly or indirectly controlled by the PRC government through its government authorities, agencies, affiliations and other organizations (collectively referred as “state-controlled entities”). Apart from transactions with Sinopec Group Company and fellow subsidiaries, the Group has transactions with other state-controlled entities, include but not limited to the following: · sales and purchases of goods and ancillary materials; · rendering and receiving services; · lease of assets; · depositing and borrowing money; and · use of public utilities. These transactions are conducted in the ordinary course of the Group’s business on terms comparable to those with other entities that are not state-controlled. |
EMPLOYEE BENEFITS PLAN
EMPLOYEE BENEFITS PLAN | 12 Months Ended |
Dec. 31, 2018 | |
EMPLOYEE BENEFITS PLAN [abstract] | |
Disclosure of employee benefits plan | 35. EMPLOYEE BENEFITS PLAN As stipulated by the regulations of the PRC, the Group participates in various defined contribution retirement plans organized by municipal and provincial governments for its staff. The Group is required to make contributions to the retirement plans at rates ranging from 13.0% to 20.0% of the salaries, bonuses and certain allowances of its staff. In addition, the Group provides a supplementary retirement plan for its staff at rates not exceeding 5% of the salaries. The Group has no other material obligation for the payment of pension benefits associated with these plans beyond the annual contributions described above. The Group’s contributions for the years ended December 31, 2016, 2017 and 2018 were RMB 8,385, RMB 8,981 and RMB 9,296, respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT REPORTING [abstract] | |
Disclosure of segment reporting | 36. SEGMENT REPORTING Segment information is presented in respect of the Group’s business segments. The format is based on the Group’s management and internal reporting structure. In a manner consistent with the way in which information is reported internally to the Group’s chief operating decision maker for the purposes of resource allocation and performance assessment, the Group has identified the following five reportable segments. No operating segments have been aggregated to form the following reportable segments. (i) Exploration and production, which explores and develops oil fields, produces crude oil and natural gas and sells such products to the refining segment of the Group and external customers. (ii) Refining, which processes and purifies crude oil, that is sourced from the exploration and production segment of the Group and external suppliers, and manufactures and sells petroleum products to the chemicals and marketing and distribution segments of the Group and external customers. (iii) Marketing and distribution, which owns and operates oil depots and service stations in the PRC, and distributes and sells refined petroleum products (mainly gasoline and diesel) in the PRC through wholesale and retail sales networks. (iv) Chemicals, which manufactures and sells petrochemical products, derivative petrochemical products and other chemical products mainly to external customers. (v) Corporate and others, which largely comprise the trading activities of the import and export companies of the Group and research and development undertaken by other subsidiaries. The segments were determined primarily because the Group manages its exploration and production, refining, marketing and distribution, chemicals, and corporate and others businesses separately. The reportable segments are each managed separately because they manufacture and/or distribute distinct products with different production processes and due to their distinct operating and gross margin characteristics. (1) Information of reportable segmental revenues, profits or losses, assets and liabilities The Group’s chief operating decision maker evaluates the performance and allocates resources to its operating segments on an operating profit basis, without considering the effects of finance costs or investment income. Inter-segment transfer pricing is based on the market price or cost plus an appropriate margin, as specified by the Group’s policy. Assets and liabilities dedicated to a particular segment’s operations are included in that segment’s total assets and liabilities. Segment assets include all tangible and intangible assets, except for interest in associates and joint ventures, investments, deferred tax assets, cash and cash equivalents, time deposits with financial institutions and other unallocated assets. Segment liabilities exclude short-term debts, long-term debts, loans from Sinopec Group Company and fellow subsidiaries, income tax payable, deferred tax liabilities and other unallocated liabilities. Information of the Group’s reportable segments is as follows: Years ended December 31, 2016 2017 2018 RMB RMB RMB Sales of goods Exploration and production External sales 47,443 69,168 93,499 Inter-segment sales 58,954 77,804 95,954 106,397 146,972 189,453 Refining External sales 102,983 132,478 148,930 Inter-segment sales 747,317 874,271 1,109,088 850,300 1,006,749 1,258,018 Marketing and distribution External sales 1,027,373 1,191,902 1,408,989 Inter-segment sales 3,480 3,962 5,224 1,030,853 1,195,864 1,414,213 Chemicals External sales 284,289 373,814 457,406 Inter-segment sales 38,614 49,615 73,835 322,903 423,429 531,241 Corporate and others External sales 418,102 533,108 716,789 Inter-segment sales 320,367 440,303 650,271 738,469 973,411 1,367,060 Elimination of inter-segment sales (1,168,732) (1,445,955) (1,934,372) Sales of goods 1,880,190 2,300,470 2,825,613 Other operating revenues Exploration and production 9,542 10,533 10,738 Refining 5,486 5,104 5,389 Marketing and distribution 22,004 28,333 32,424 Chemicals 12,211 14,314 15,492 Corporate and others 1,478 1,439 1,523 Other operating revenues 50,721 59,723 65,566 Sales of goods and other operating revenues 1,930,911 2,360,193 2,891,179 Years ended December 31, 2016 2017 2018 RMB RMB RMB Result Operating (loss)/income By segment - Exploration and production (36,641) (45,944) (10,107) - Refining 56,265 65,007 54,827 - Marketing and distribution 32,153 31,569 23,464 - Chemicals 20,623 26,977 27,007 - Corporate and others 3,212 (4,484) (9,293) - Elimination 1,581 (1,655) (3,634) Total segment operating income 77,193 71,470 82,264 Share of (losses)/profits from associates and joint ventures - Exploration and production (1,203) 1,449 2,598 - Refining 1,075 989 109 - Marketing and distribution 2,362 2,945 3,155 - Chemicals 5,696 9,621 6,298 - Corporate and others 1,376 1,521 1,814 Aggregate share of profits from associates and joint ventures 9,306 16,525 13,974 Investment income/(losses) - Exploration and production 24 40 (3) - Refining (4) 28 315 - Marketing and distribution 90 90 43 - Chemicals 119 86 596 - Corporate and others 34 18 920 Aggregate investment income 263 262 1,871 Net finance costs (6,611) (1,560) 1,001 Earnings before income tax 80,151 86,697 99,110 December 31, 2016 2017 2018 RMB RMB RMB Assets Segment assets - Exploration and production 402,476 343,404 321,686 - Refining 260,903 273,123 271,356 - Marketing and distribution 292,328 309,727 317,641 - Chemicals 144,371 158,472 156,865 - Corporate and others 95,263 170,045 152,799 Total segment assets 1,195,341 1,254,771 1,220,347 Interest in associates and joint ventures 116,812 131,087 145,721 Available-for-sale financial assets 11,408 1,676 — Financial assets at fair value through other comprehensive income — — 1,450 Deferred tax assets 7,214 15,131 21,694 Cash and cash equivalents, time deposits with financial institutions 142,497 165,004 167,015 Other unallocated assets 25,337 27,835 36,081 Total assets 1,498,609 1,595,504 1,592,308 Liabilities Segment liabilities - Exploration and production 95,944 99,568 94,170 - Refining 82,170 101,429 103,809 - Marketing and distribution 133,303 164,101 159,536 - Chemicals 32,072 35,293 37,413 - Corporate and others 97,080 117,781 144,216 Total segment liabilities 440,569 518,172 539,144 Short-term debts 56,239 55,338 29,462 Income tax payable 6,051 13,015 6,699 Long-term debts 72,674 55,804 51,011 Loans from Sinopec Group Company and fellow subsidiaries 63,352 68,631 74,181 Deferred tax liabilities 7,661 6,466 5,948 Other unallocated liabilities 20,828 25,188 29,328 Total liabilities 667,374 742,614 735,773 Years ended December 31, 2016 2017 2018 RMB RMB RMB Capital expenditure Exploration and production 32,187 31,344 42,155 Refining 14,347 21,075 27,908 Marketing and distribution 18,493 21,539 21,429 Chemicals 8,849 23,028 19,578 Corporate and others 2,580 2,398 6,906 76,456 99,384 117,976 Depreciation, depletion and amortization Exploration and production 61,929 66,843 60,331 Refining 17,209 18,408 18,164 Marketing and distribution 14,540 15,463 16,296 Chemicals 12,654 12,873 13,379 Corporate and others 2,093 1,723 1,797 108,425 115,310 109,967 Impairment losses on long-lived assets Exploration and production 11,605 13,556 4,274 Refining 1,655 1,894 353 Marketing and distribution 267 675 264 Chemicals 2,898 4,922 1,374 Corporate and others — 211 16 16,425 21,258 6,281 (2) Geographical information The following tables set out information about the geographical information of the Group’s external sales and the Group’s non-current assets, excluding financial instruments and deferred tax assets. In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers, and segment assets are based on the geographical location of the assets. Years ended December 31, 2016 2017 2018 RMB RMB RMB External sales Mainland China 1,488,117 1,758,365 2,119,580 Singapore 152,068 269,349 395,129 Others 290,726 332,479 376,470 1,930,911 2,360,193 2,891,179 December 31, 2016 2017 2018 RMB RMB RMB Non-current assets Mainland China 1,000,209 979,329 989,668 Others 45,887 48,572 50,892 1,046,096 1,027,901 1,040,560 |
PRINCIPAL SUBSIDIARIES
PRINCIPAL SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2018 | |
PRINCIPAL SUBSIDIARIES [abstract] | |
Disclosure of principal subsidiaries | 37. PRINCIPAL SUBSIDIARIES As of December 31, 2018, the following list contains the particulars of subsidiaries which principally affected the results, assets and liabilities of the Group. Interests held Particulars Interests by non- of issued held by the controlling Name of Company capital Company % interests % Principal activities Sinopec International Petroleum Exploration and Production Limited ("SIPL") RMB 8,000 100.00 — Investment in exploration, production and sale of petroleum and natural gas Sinopec Great Wall Energy & Chemical Company Limited RMB 22,761 100.00 — Coal chemical industry investment management, production and sale of coal chemical products Sinopec Yangzi Petrochemical Company Limited RMB 15,651 100.00 — Manufacturing of intermediate petrochemical products and petroleum products Sinopec Pipeline Storage & Transportation Company Limited RMB 12,000 100.00 — Pipeline storage and transportation of crude oil Sinopec Yizheng Chemical Fibre Limited Liability Company RMB 4,000 100.00 — Production and sale of polyester chips and polyester fibres Sinopec Lubricant Company Limited RMB 3,374 100.00 — Production and sale of refined petroleum products, lubricant base oil, and petrochemical materials Sinopec Qingdao Petrochemical Company Limited RMB 1,595 100.00 — Manufacturing of intermediate petrochemical products and petroleum products Sinopec Chemical Sales Company Limited RMB 1,000 100.00 — Marketing and distribution of petrochemical products China International United Petroleum and Chemical Company Limited RMB 3,000 100.00 — Trading of crude oil and petrochemical products Sinopec Overseas Investment Holding Limited ("SOIH") US Dollar 1,662 100.00 — Investment holding of overseas business Sinopec Catalyst Company Limited RMB 1,500 100.00 — Production and sale of catalyst products China Petrochemical International Company Limited RMB 1,400 100.00 — Trading of petrochemical products Sinopec Beihai Refining and Chemical Limited Liability Company RMB 5,294 98.98 1.02 Import and processing of crude oil, production, storage and sale of petroleum products and petrochemical products Sinopec Qingdao Refining and Chemical Company Limited RMB 5,000 85.00 15.00 Manufacturing of intermediate petrochemical products and petroleum products Sinopec Hainan Refining and Chemical Company Limited RMB 3,986 75.00 25.00 Manufacturing of intermediate petrochemical products and petroleum products Sinopec Marketing Co. Limited ("Marketing Company") RMB 28,403 70.42 29.58 Marketing and distribution of refined petroleum products Shanghai SECCO Petrochemical Company Limited ("Shanghai SECCO") (Note 33) RMB 7,801 67.60 32.40 Production and sale of petrochemical products Sinopec—SK(Wuhan) Petrochemical Company Limited ("Zhonghan Wuhan") RMB 6,270 65.00 35.00 Production, sale, research and development of ethylene and downstream byproducts Sinopec Kantons Holdings Limited ("Sinopec Kantons") HKD 248 60.33 39.67 Provision of crude oil jetty services and natural gas pipeline transmission services Gaoqiao Petrochemical Company Limited (Note 33) RMB 10,000 55.00 45.00 Manufacturing of intermediate petrochemical products and petroleum products Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical") RMB 10,824 50.44 49.56 Manufacturing of synthetic fibres, resin and plastics, intermediate petrochemical products and petroleum products Fujian Petrochemical Company Limited ("Fujian Petrochemical") (i) RMB 8,140 50.00 50.00 Manufacturing of plastics, intermediate petrochemical products and petroleum products Except for Sinopec Kantons and SOIH, which are incorporated in Bermuda and Hong Kong respectively, all of the above principal subsidiaries are incorporated and operate their businesses principally in the PRC. All of the above principal subsidiaries are limited companies. Note: (i) The Group consolidated the financial statements of the entity because it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Summarized financial information on subsidiaries with material non-controlling interests Set out below are the summarized financial information which the amount before inter-company eliminations for each subsidiary that has non-controlling interests that are material to the Group. Summarized consolidated balance sheet Shanghai Shanghai Marketing Company SIPL Petrochemical Fujian Petrochemical Sinopec Kantons SECCO Zhonghan Wuhan December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets 156,494 130,861 19,555 16,731 19,866 25,299 992 816 1,196 1,209 11,602 9,537 1,636 2,750 Current liabilities (212,620) (181,766) (7,118) (483) (10,922) (13,913) (376) (50) (2,351) (3,722) (4,174) (2,233) (3,975) (2,333) Net current (liabilities)/assets (56,126) (50,905) 12,437 16,248 8,944 11,386 616 766 (1,155) (2,513) 7,428 7,304 (2,339) 417 Non-current assets 253,455 261,062 34,769 38,020 19,577 19,087 9,925 11,444 13,089 12,895 12,797 12,301 13,598 12,612 Non-current liabilities (1,774) (2,086) (28,523) (31,050) (6) (10) (681) (688) (2,430) (132) (1,740) (1,698) — — Net non-current assets 251,681 258,976 6,246 6,970 19,571 19,077 9,244 10,756 10,659 12,763 11,057 10,603 13,598 12,612 Net assets 195,555 208,071 18,683 23,218 28,515 30,463 9,860 11,522 9,504 10,250 18,485 17,907 11,259 13,029 Attributable to owners of the Company 132,549 141,244 3,468 5,266 14,253 15,295 4,930 5,761 5,716 6,165 12,496 12,105 7,318 8,469 Attributable to non-controlling interests 63,006 66,827 15,215 17,952 14,262 15,168 4,930 5,761 3,788 4,085 5,989 5,802 3,941 4,560 Summarized consolidated statement of comprehensive income Shanghai Marketing Company SIPL Shanghai Petrochemical Fujian Petrochemical Sinopec Kantons SECCO (ii) Zhonghan Wuhan Year ended December 31, 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2017 2018 2016 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 1,050,294 1,221,530 1,443,698 4,016 6,136 5,037 77,843 91,962 107,689 4,968 6,068 5,261 1,512 1,498 1,398 5,222 26,320 11,703 16,139 17,134 Net income/ (loss) for the year 26,461 27,520 22,046 (4,604) 1,075 3,272 5,981 6,154 5,336 2,513 2,726 1,576 860 1,046 1,065 726 3,099 1,558 2,730 1,879 Total Comprehensive income/ (loss) 27,385 26,986 22,589 (2,481) 396 4,536 6,000 6,153 5,336 2,513 2,726 1,576 879 1,146 1,067 726 3,099 1,558 2,730 1,879 Comprehensive income/(loss) attributable to non-controlling interests 9,028 9,033 7,794 (3,279) (38) 2,737 2,964 3,052 2,645 1,256 1,363 788 349 433 399 235 1,004 545 956 658 Dividends paid to non-controlling interests 4,932 9,544 3,964 — — — 563 1,344 1,616 — 625 600 51 70 104 — 1,191 — — — Summarized statement of cash flows Shanghai Marketing Company SIPL Shanghai Petrochemical Fujian Petrochemical Sinopec Kantons SECCO (ii) Zhonghan Wuhan Year ended December 31, 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2017 2018 2016 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Net cash generated from/(used in) operating activities 50,840 51,038 24,825 2,576 2,758 3,467 7,182 7,061 6,659 617 (558) 38 505 968 738 1,639 3,766 3,636 2,976 3,308 Net cash (used in)/generated from investing activities (31,573) (35,738) 8,339 2,729 (2,211) 4,096 (190) (2,401) (1,928) 54 225 (215) 261 193 648 5,567 (480) (3,080) (2,415) (3,099) Net cash (used in)/generated from financing activities (20,424) (16,499) (32,084) (4,414) 243 (5,419) (2,637) (2,590) (3,507) (55) (158) 43 (1,338) (1,093) (1,551) — (3,676) (682) (631) 525 Net (decrease)/increase in cash and cash equivalents (1,157) (1,199) 1,080 891 790 2,144 4,355 2,070 1,224 616 (491) (134) (572) 68 (165) 7,206 (390) (126) (70) 734 Cash and cash equivalents as of January 1 14,914 14,373 12,921 2,042 3,045 3,605 1,077 5,441 7,504 101 717 226 886 289 343 — 7,205 260 134 64 Effect of foreign currency exchange rate changes 616 (253) 141 112 (230) 244 9 (7) 14 — — — (25) (14) 20 (1) 2 — — — Cash and cash equivalents as of December 31 14,373 12,921 14,142 3,045 3,605 5,993 5,441 7,504 8,742 717 226 92 289 343 198 7,205 6,817 134 64 798 (ii) The summarized consolidated statement of comprehensive income and the summarized statement of cash flow of Shanghai SECCO present the results from the acquisition date to December 31, 2017. |
FINANCIAL RISK MANAGEMENT AND F
FINANCIAL RISK MANAGEMENT AND FAIR VALUES | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES [abstract] | |
Disclosure of financial risk management and fair values | 38. FINANCIAL RISK MANAGEMENT AND FAIR VALUES Overview Financial assets of the Group include cash and cash equivalents, time deposits with financial institutions, investments, financial assets at fair value through profit or loss, derivative financial assets, bills receivable, trade accounts receivable, amounts due from Sinopec Group Company and fellow subsidiaries, amounts due from associates and joint ventures, financial assets at fair value through other comprehensive income and other receivables. Financial liabilities of the Group include short-term debts, loans from Sinopec Group Company and fellow subsidiaries, derivative financial liabilities, bills payable, trade accounts payable, amounts due to Sinopec Group Company and fellow subsidiaries, other payables and long-term debts. The Group has exposure to the following risks from its uses of financial instruments: · credit risk; · liquidity risk; and · market risk. The Board of Directors has overall responsibility for the establishment, oversight of the Group’s risk management framework, and developing and monitoring the Group’s risk management policies. The Group’s risk management policies are established to identify and analyze the risks faced by the Group, and set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management controls and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. Internal audit department undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Group’s audit committee. Credit risk (i) Risk management Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s deposits placed with financial institutions (including structured deposit) and receivables from customers. To limit exposure to credit risk relating to deposits, the Group primarily places cash deposits only with large financial institutions in the PRC with acceptable credit ratings. The majority of the Group’s trade accounts receivable relate to sales of petroleum and chemical products to related parties and third parties operating in the petroleum and chemical industries. No single customer accounted for greater than 10% of total accounts receivable as of December 31, 2018, except the amounts due from Sinopec Group Company and fellow subsidiaries. Management performs ongoing credit evaluations of the Group’s customers’ financial condition and generally does not require collateral on trade accounts receivable. The Group maintains an impairment loss for doubtful accounts and actual losses have been within management’s expectations. The carrying amounts of cash and cash equivalents, time deposits with financial institutions, trade accounts and bills receivables, derivative financial instruments, financial assets at fair value through profit or loss and other receivables, represent the Group’s maximum exposure to credit risk in relation to financial assets. (ii) Impairment of financial assets The Group’s primary type of financial assets that are subject to the expected credit loss model is trade accounts receivables and other receivables. The Group’s cash deposits are placed only with large financial institutions with acceptable credit ratings, and there is no material impairment loss identified. For trade accounts receivables, the group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade accounts receivables. To measure the expected credit losses, trade accounts receivables have been grouped based on shared credit risk characteristics and the days past due. The expected loss rates are based on the payment profiles of sales over a period of 36 month before December 31, 2018 or January 1, 2018, respectively, and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The detailed analysis of trade accounts receivables, based on which the Group generated its payment profile is listed in Note 15. All of the entity’s other receivables (Note 17) are considered to have low credit risk, and the loss allowance recognized during the period was therefore limited to 12 months expected losses. The Group considers ‘low credit risk’ for other receivables when they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach in managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. Management prepares monthly cash flow budget to ensure that the Group will always have sufficient liquidity to meet its financial obligations as they fall due. The Group arranges and negotiates financing with financial institutions and maintains a certain level of standby credit facilities to reduce the Group’s liquidity risk. As of December 31, 2017 and 2018, the Group has standby credit facilities with several PRC financial institutions which provide borrowings up to RMB 361,852 and RMB 387,748 on an unsecured basis, at a weighted average interest rate of 3.40% and 3.87% per annum, respectively. As of December 31, 2017 and 2018, the Group’s outstanding borrowings under these facilities were RMB 56,567 and RMB 21,236 and were included in debts, respectively. The following table sets out the remaining contractual maturities at the balance sheet date of the Group’s financial liabilities, which are based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on prevailing rates current at the balance sheet date) and the earliest date the Group would be required to repay: December 31, 2017 Total More than More than contractual Within 1 1 year but 2 year but Carrying undiscounted year or on less than 2 less than 5 More than amount cash flow demand years years 5 years RMB RMB RMB RMB RMB RMB Short-term debts 55,338 56,562 56,562 — — — Long-term debts 55,804 66,202 2,166 14,477 32,316 17,243 Loans from Sinopec Group Company and fellow subsidiaries 68,631 68,950 25,504 4,439 39,007 — Derivatives financial liabilities 2,665 2,665 2,665 — — — Trade accounts payable and bills payable 206,535 206,535 206,535 — — — Other payables 96,923 96,923 96,923 — — — 485,896 497,837 390,355 18,916 71,323 17,243 December 31, 2018 Total More than More than contractual Within 1 1 year but 2 year but Carrying undiscounted year or on less than 2 less than 5 More than amount cash flow demand years years 5 years RMB RMB RMB RMB RMB RMB Short-term debts 29,462 30,123 30,123 — — — Long-term debts 51,011 61,809 1,889 16,938 27,190 15,792 Loans from Sinopec Group Company and fellow subsidiaries 74,181 75,207 32,127 37,977 3,741 1,362 Derivatives financial liabilities 13,571 13,571 13,571 — — — Trade accounts payable and bills payable 192,757 192,757 192,757 — — — Other payables 85,790 85,790 85,790 — — — 446,772 459,257 356,257 54,915 30,931 17,154 Management believes that the Group’s current cash on hand, expected cash flows from operations and available standby credit facilities from financial institutions will be sufficient to meet the Group’s short-term and long-term capital requirements. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk. Currency risk Currency risk arises on financial instruments that are denominated in a currency other than the functional currency in which they are measured. The Group’s currency risk exposure primarily relates to short-term and long-term debts and loans from Sinopec Group Company and fellow subsidiaries denominated in US Dollars. The Group enters into foreign exchange contracts to manage its currency risk exposure. Included in short-term and long-term debts and loans from Sinopec Group Company and fellow subsidiaries of the Group are the following amounts denominated in a currency other than the functional currency of the entity to which they relate: December 31, 2017 2018 Gross exposure arising from loans US Dollars 204 668 A 5 percent strengthening/weakening of RMB against the following currencies as of December 31, 2017 and 2018 would have increased/decreased net income of the Group by the amounts shown below. This analysis has been determined assuming that the change in foreign exchange rates had occurred at the balance sheet date and had been applied to the foreign currency balances to which the Group has significant exposure as stated above, and that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2017. December 31, 2017 2018 US Dollars 50 172 Other than the amounts as disclosed above, the amounts of other financial assets and liabilities of the Group are substantially denominated in the functional currency of respective entity within the Group. Interest rate risk The Group’s interest rate risk exposure arises primarily from its short-term and long-term debts. Debts bearing interest at variable rates and at fixed rates expose the Group to cash flow interest rate risk and fair value interest rate risk respectively. The interest rates of short-term and long-term debts, and loans from Sinopec Group Company and fellow subsidiaries of the Group are disclosed in Note 26. As of December 31, 2017, it is estimated that a general increase/decrease of 100 basis points in variable interest rates, with all other variables held constant, would decrease/increase the Group’s net income by approximately RMB 450. As of December 31, 2018, it is estimated that a general increase/decrease of 100 basis points in variable interest rates, with all other variables held constant, would decrease/increase the Group’s net income by approximately RMB 424. This sensitivity analysis has been determined assuming that the change of interest rates was applied to the Group’s debts outstanding at the balance sheet date with exposure to cash flow interest rate risk. The analysis is performed on the same basis for 2017. Commodity price risk The Group engages in oil and gas operations and is exposed to commodity price risk related to price volatility of crude oil, refined oil products and chemical products. The fluctuations in prices of crude oil, refined oil products and chemical products could have significant impact on the Group. The Group uses derivative financial instruments, including commodity futures and swaps, to manage a portion of this risk. As of December, 31, 2017 and 2018, the Group had certain commodity contracts of crude oil, refined oil product and chemical products designated as qualified cash flow hedges and economic hedges. As of December 31, 2017 and 2018, the fair value of such derivative hedging financial instruments is derivative financial assets of RMB 515 and RMB 7,844, respectively, and derivative financial liabilities of RMB 2,624 and RMB 13,568, respectively. As of December 31, 2017, it is estimated that a general increase/decrease of USD 10 per barrel in basic price of derivative financial instruments, with all other variables held constant, would impact the fair value of derivative financial instruments, which would decrease/increase the Group’s net income by approximately RMB 4,049 and decrease/increase the Group’s other reserves by approximately RMB 701. As of December 31, 2018, it is estimated that a general increase/decrease of USD 10 per barrel in basic price of derivative financial instruments, with all other variables held constant, would impact the fair value of derivative financial instruments, which would decrease/increase the Group’s net income for the period by approximately RMB 197 and increase/decrease the Group’s other reserves by approximately RMB 6,850. This sensitivity analysis has been determined assuming that the change in prices had occurred at the balance sheet date and the change was applied to the Group’s derivative financial instruments at that date with exposure to commodity price risk. The analysis is performed on the same basis for 2017. Fair values (i) Financial instruments carried at fair value The following table presents the carrying value of financial instruments measured at fair value at the balance sheet date across the three levels of the fair value hierarchy defined in IFRS 7, Financial Instruments: Disclosures , with the fair value of each financial instrument categorized in its entirety based on the lowest level of input that is significant to that fair value measurement. The levels are defined as follows: · Level 1 (highest level): fair values measured using quoted prices (unadjusted) in active markets for identical financial instruments. · Level 2: fair values measured using quoted prices in active markets for similar financial instruments, or using valuation techniques in which all significant inputs are directly or indirectly based on observable market data. · Level 3 (lowest level): fair values measured using valuation techniques in which any significant input is not based on observable market data. December 31, 2017 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Financial assets at fair value through profit and loss: - Structured deposit — — 51,196 51,196 Available-for-sale financial assets: - Listed 178 — — 178 Derivative financial instruments: - Derivative financial assets 343 183 — 526 521 183 51,196 51,900 Liabilities Derivative financial instruments: - Derivative financial liabilities 1,277 1,388 — 2,665 1,277 1,388 — 2,665 December 31, 2018 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Financial assets at fair value through profit and loss: - Structured deposit — — 25,550 25,550 - Equity investments, listed and at quoted market price 182 — — 182 Derivative financial instruments: - Derivative financial assets 874 7,013 — 7,887 Financial assets at fair value through other compre-hensive income: - Equity investments 127 — 1,323 1,450 1,183 7,013 26,873 35,069 Liabilities Derivative financial instruments: - Derivative financial liabilities 5,500 8,071 — 13,571 5,500 8,071 — 13,571 During the years ended December 31, 2017 and 2018, there was no transfer between instruments in Level 1 and Level 2. Management of the Group uses discounted cash flow model with inputted interest rate and commodity index, which were influenced by historical fluctuation and the probability of market fluctuation, to evaluate the fair value of the structural deposits classified as level 3 financial assets. (ii) Fair values of financial instruments carried at other than fair value The disclosures of the fair value estimates, and their methods and assumptions of the Group’s financial instruments, are made to comply with the requirements of IFRS 7 and IFRS 9 and should be read in conjunction with the Group’s consolidated financial statements and related notes. The estimated fair value amounts have been determined by the Group using market information and valuation methodologies considered appropriate. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Group could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. The fair values of the Group’s financial instruments carried at other than fair value (other than long-term indebtedness and investments in unquoted equity securities) approximate their carrying amounts due to the short-term maturity of these instruments. The fair values of long-term indebtedness are estimated by discounting future cash flows using current market interest rates offered to the Group that range between 1.79% to 4.90% and 2.76% to 4.90% for the years ended December 31, 2017 and 2018, respectively. The following table presents the carrying amount and fair value of the Group’s long-term indebtedness other than loans from Sinopec Group Company and fellow subsidiaries as of December 31, 2017 and 2018: December 31, 2017 2018 RMB RMB Carrying amount 79,738 63,085 Fair value 78,040 62,656 The Group has not developed an internal valuation model necessary to estimate the fair value of loans from Sinopec Group Company and fellow subsidiaries as it is not considered practicable to estimate their fair values because the cost of obtaining discount and borrowing rates for comparable borrowings would be excessive based on the Reorganization, the Group’s existing capital structure and the terms of the borrowings. Except for the above items, the financial assets and liabilities of the Group are carried at amounts not materially different from their fair values as of December 31, 2017 and 2018. |
ACCOUNTING ESTIMATES AND JUDGME
ACCOUNTING ESTIMATES AND JUDGMENTS | 12 Months Ended |
Dec. 31, 2018 | |
ACCOUNTING ESTIMATES AND JUDGMENTS [abstract] | |
Disclosure of accounting estimates and judgments | 39. ACCOUNTING ESTIMATES AND JUDGMENTS The Group’s financial condition and results of operations are sensitive to accounting methods, assumptions and estimates that underlie the preparation of the consolidated financial statements. Management bases the assumptions and estimates on historical experience and on various other assumptions that it believes to be reasonable and which form the basis for making judgments about matters that are not readily apparent from other sources. On an ongoing basis, management evaluates its estimates. Actual results may differ from those estimates as facts, circumstances and conditions change. The selection of critical accounting policies, the judgments and other uncertainties affecting application of such policies and the sensitivity of reported results to changes in conditions and assumptions are factors to be considered when reviewing the consolidated financial statements. The significant accounting policies are set forth in Note 2. Management believes the following critical accounting policies involve the most significant judgments and estimates used in the preparation of the consolidated financial statements. Oil and gas properties and reserves The accounting for the exploration and production’s oil and gas activities is subject to accounting rules that are unique to the oil and gas industry. There are two methods to account for oil and gas business activities, the successful efforts method and the full cost method. The Group has elected to use the successful efforts method. The successful efforts method reflects the volatility that is inherent in exploring for mineral resources in that costs of unsuccessful exploratory efforts are charged to expense as they are incurred. These costs primarily include dry hole costs, seismic costs and other exploratory costs. Under the full cost method, these costs are capitalized and written-off or depreciated over time. Engineering estimates of the Group’s oil and gas reserves are inherently imprecise and represent only approximate amounts because of the subjective judgments involved in developing such information. There are authoritative guidelines regarding the engineering criteria that have to be met before estimated oil and gas reserves can be designated as “proved”. Proved and proved developed reserves estimates are updated at least annually and take into account recent production and technical information about each field. In addition, as prices and cost levels change from year to year, the estimate of proved and proved developed reserves also changes. This change is considered a change in estimate for accounting purposes and is reflected on a prospective basis in relation to depreciation rates. Oil and gas reserves have a direct impact on the assessment of the recoverability of the carrying amounts of oil and gas properties reported in the financial statements. If proved reserves estimates are revised downwards, earnings could be affected by changes in depreciation expense or an immediate write-down of the property’s carrying amount. Future dismantlement costs for oil and gas properties are estimated with reference to engineering estimates after taking into consideration the anticipated method of dismantlement required in accordance with industry practices in similar geographic area, including estimation of economic life of oil and gas properties, technology and price level. The present values of these estimated future dismantlement costs are capitalized as oil and gas properties with equivalent amounts recognized as provisions for dismantlement costs. Despite the inherent imprecision in these engineering estimates, these estimates are used in determining depreciation expense, impairment loss and future dismantlement costs. Capitalized costs of proved oil and gas properties are amortized on a unit-of-production method based on volumes produced and reserves. Impairment for long-lived assets If circumstances indicate that the net book value of a long-lived asset may not be recoverable, the asset may be considered “impaired”, and an impairment loss may be recognized in accordance with IAS 36 “Impairment of Assets”. The carrying amounts of long-lived assets are reviewed periodically in order to assess whether the recoverable amounts have declined below the carrying amounts. These assets are tested for impairment whenever events or changes in circumstances indicate that their recorded carrying amounts may not be recoverable. When such a decline has occurred, the carrying amount is reduced to recoverable amount. For goodwill, the recoverable amount is estimated annually. The recoverable amount is the greater of the net selling price and the value in use. It is difficult to precisely estimate selling price because quoted market prices for the Group’s assets or cash-generating units are not readily available. In determining the value in use, expected cash flows generated by the asset or the cash-generating unit are discounted to their present value, which requires significant judgment relating to level of sale volume, selling price, amount of operating costs and discount rate. Management uses all readily available information in determining an amount that is a reasonable approximation of recoverable amount, including estimates based on reasonable and supportable assumptions and projections of sale volume, selling price, amount of operating costs and discount rate. Depreciation Property, plant and equipment, other than oil and gas properties, are depreciated on a straight-line basis over the estimated useful lives of the assets, after taking into account the estimated residual value. Management reviews the estimated useful lives of the assets at least annually in order to determine the amount of depreciation expense to be recorded during any reporting period. The useful lives are based on the Group’s historical experience with similar assets and take into account anticipated technological changes. The depreciation expense for future periods is adjusted if there are significant changes from previous estimates. Measurement of expected credit losses The Group measures and recognizes expected credit losses, considering reasonable and supportable information about the relevant past events, current conditions and forecasts of future economic conditions. The Group regularly monitors and reviews the assumptions used for estimating expected credit losses. Allowance for diminution in value of inventories If the costs of inventories become higher than their net realizable values, an allowance for diminution in value of inventories is recognized. Net realizable value represents the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Management bases the estimates on all available information, including the current market prices of the finished goods and raw materials, and historical operating costs. If the actual selling prices were to be lower or the costs of completion were to be higher than estimated, the actual allowance for diminution in value of inventories could be higher than estimated. |
PARENT AND ULTIMATE HOLDING COM
PARENT AND ULTIMATE HOLDING COMPANY | 12 Months Ended |
Dec. 31, 2018 | |
PARENT AND ULTIMATE HOLDING COMPANY [abstract] | |
Disclosure of parent and ultimate holding company | 40. PARENT AND ULTIMATE HOLDING COMPANY The directors consider the parent and ultimate holding company of the Group as of December 31, 2018 is Sinopec Group Company, a state-owned enterprise established in the PRC. This entity does not produce financial statements available for public use. |
RESERVES
RESERVES | 12 Months Ended |
Dec. 31, 2018 | |
RESERVES [abstract] | |
Disclosure of reserves | 41. RESERVES 2017 2018 RMB RMB Capital reserve (Note (a)) Balance as of January 1 26,290 26,326 Transaction with non-controlling interests (13) (12) Others 49 (261) Balance as of December 31 26,326 26,053 Share premium (Note (b)) Balance as of January 1 55,850 55,850 Balance as of December 31 55,850 55,850 Statutory surplus reserve (Note (c)) Balance as of January 1 79,640 82,682 Appropriation 3,042 3,996 Balance as of December 31 82,682 86,678 Discretionary surplus reserve Balance as of January 1 117,000 117,000 Balance as of December 31 117,000 117,000 Other reserves Change in accounting policy — (12) Balance as of January 1 424 (2,946) Other comprehensive income (3,481) (7,618) Amounts transferred to cash flow hedge reserves initially recognized by hedged items — 5,269 Others 123 818 Balance as of December 31 (2,934) (4,477) Retained earnings (Note (d)) Change in accounting policy — 12 Balance as of January 1 310,719 326,137 Net income attributable to owners of the Company 51,244 61,618 Final dividend inspect of the previous year, approved and paid during the year (Note (e)) (20,582) (48,428) Interim dividend (Note (f)) (12,107) (19,371) Appropriation (3,042) (3,996) Others (107) (851) Balance as of December 31 326,125 315,109 605,049 596,213 Note: (a) The capital reserve represents (i) the difference between the total amount of the par value of shares issued and the amount of the net assets transferred from Sinopec Group Company in connection with the Reorganization (Note 1), and (ii) the difference between the considerations paid over or received the amount of the net assets of entities and related operations acquired from or sold to Sinopec Group Company and non-controlling interests. (b) The application of the share premium account is governed by Sections 167 and 168 of the PRC Company Law. (c) According to the PRC Company Law and the Article of Association of the Company, the Company is required to transfer 10% of its net income determined in accordance with the accounting policies complying with Accounting Standards for Business Enterprises (“ASBE”), adopted by the Group to statutory surplus reserve. In the event that the reserve balance reaches 50% of the registered capital, no transfer is required. The transfer to this reserve must be made before distribution of a dividend to shareholders. Statutory surplus reserve can be used to make good previous years’ losses, if any, and may be converted into share capital by issuing of new shares to shareholders in proportion to their existing shareholdings or by increasing the par value of the shares currently held by them, provided that the balance after such issue is not less than 25% of the registered capital. During the years ended December 31, 2016, 2017 and 2018, the Company transferred RMB nil, RMB 3,042 and RMB 3,996 respectively, being 10% of the net income determined in accordance with the accounting policies complying with ASBE, to this reserve. (d) As of December 31, 2017 and 2018, the amount of retained earnings available for distribution was RMB 177,049 and RMB 143,148, respectively, being the amount determined in accordance with ASBE. According to the Articles of Association of the Company, the amount of retained earnings available for distribution to owners of the Company is the lower of the amount determined in accordance with the accounting policies complying with ASBE and the amount determined in accordance with the accounting policies complying with IFRS. Pursuant to a resolution passed at the director’s meeting on March 22, 2019, final dividends in respect of the year ended December 31, 2018 of RMB 0.26 per share totaling RMB 31,479 were proposed for shareholders’ approval at the Annual General Meeting. Final cash dividend for the year ended December 31, 2018 proposed after the balance sheet date has not been recognized as a liability at the balance sheet date. (e) Pursuant to the shareholders’ approval at the Annual General Meeting on June 28, 2017, a final dividend of RMB 0.17 per share totaling RMB 20,582 according to total shares as of July 18, 2017 was approved. All dividends have been paid in the year ended December 31, 2017. Pursuant to the shareholders’ approval at the Annual General Meeting on May 15, 2018, a final dividend of RMB 0.40 per share totaling RMB 48,428 according to total shares as of June 4, 2018 was approved. All dividends have been paid in the year ended December 31, 2018. (f) Pursuant to the Company’s Articles of Association and a resolution passed at the Directors’ meeting on August 25, 2017, the directors authorized to declare the interim dividend for the year ended December 31, 2017 of RMB 0.10 per share totaling RMB 12,107. Dividends were paid on September 20, 2017. Pursuant to the Company’s Articles of Association and a resolution passed at the Directors’ meeting on August 24, 2018, the directors authorized to declare the interim dividend for the year ended December 31, 2018 of RMB 0.16 per share totaling RMB 19,371. Dividends were paid on September 12, 2018. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES [abstract] | |
Basis of consolidation | (a) Basis of consolidation The consolidated financial statements comprise the Company and its subsidiaries, and interest in associates and joint ventures. (i) Subsidiaries and non-controlling interests Subsidiaries are those entities controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control effectively commences until the date that control effectively ceases. Non-controlling interests at the balance sheet date, being the portion of the net assets of subsidiaries attributable to equity interests that are not owned by the Company, whether directly or indirectly through subsidiaries, are presented in the consolidated balance sheet and consolidated statement of changes in equity within equity, separately from equity attributable to the owners of the Company. Non-controlling interests in the results of the Group are presented on the face of the consolidated statement of income and the consolidated statement of comprehensive income as an allocation of the total profit or loss and total comprehensive income for the year between non-controlling interests and the owners of the Company. Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling interests within consolidated equity to reflect the change in relative interests, but no adjustments are made to goodwill and no gain or loss is recognized. If a business combination involving entities not under common control is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognized in the consolidated statement of income. When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former subsidiary at the date when control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (Note 2(k)) or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture (Note 2(a)(ii)). In the Company’s balance sheet, investments in subsidiaries are stated at cost less impairment losses (Note 2(o)). The particulars of the Group’s principal subsidiaries are set out in Note 37. (ii) Associates and joint ventures An associate is an entity, not being a subsidiary, in which the Group exercises significant influence over its management. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. The investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has rather than the legal structure of the joint arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Investments in associates and joint ventures are accounted for in the consolidated financial statements using the equity method from the date that significant influence or joint control commences until the date that significant influence or joint control ceases. Under the equity method, the investment is initially recorded at cost and adjusted thereafter for the post acquisition change in the Group’s share of the investee’s net assets and any impairment loss relating to the investment (Note 2(j) and (o)). The Group’s share of the post-acquisition, post-tax results of the investees and any impairment losses for the year are recognized in the consolidated statement of income, whereas the Group’s share of the post-acquisition, post-tax items of the investees’ other comprehensive income is recognized in the consolidated statement of comprehensive income. When the Group ceases to have significant influence over an associate or joint control over a joint venture, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former investee at the date when significant influence or joint control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset (see Note 2(k)) or, when appropriate, the cost on initial recognition of an investment in an associate (see Note 2(a) (ii)). (iii) Transactions eliminated on consolidation Inter-company balances and transactions and any unrealized gains arising from inter-company transactions are eliminated on consolidation. Unrealized gains arising from transactions with associates and joint ventures are eliminated to the extent of the Group’s interest in the entity. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. (iv) Merger accounting for common control combination The consolidated financial statements incorporate the financial statements of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling party. The net assets of the combining entities or businesses are combined using the existing book values from the controlling parties’ perspective. No amount is recognized as consideration for goodwill or excess of acquirers’ interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination, to the extent of the continuation of the controlling party’s interest. The consolidated statement of income includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under the common control, where there is a shorter period, regardless of the date of the common control combination. The comparative amounts in the consolidated financial statements are presented as if the entities or businesses had been combined at the previous balance sheet date or when they first came under common control, whichever is shorter. A uniform set of accounting policies is adopted by those entities. All intra-group transactions, balances and unrealized gains on transactions between combining entities or businesses are eliminated on consolidation. Transaction costs, including professional fees, registration fees, costs of furnishing information to shareholders, costs or losses incurred in combining operations of the previously separate businesses, etc., incurred in relation to the common control combination that is to be accounted for by using merger accounting is recognized as an expense in the period in which it is incurred. |
Translation of foreign currencies | (b) Translation of foreign currencies The presentation currency of the Group is Renminbi. Foreign currency transactions during the year are translated into Renminbi at the applicable rates of exchange quoted by the People’s Bank of China (“PBOC”) prevailing on the transaction dates. Foreign currency monetary assets and liabilities are translated into Renminbi at the PBOC’s rates at the balance sheet date. Exchange differences, other than those capitalized as construction in progress, are recognized as income or expenses in the “finance costs” section of the consolidated statement of income. The results of foreign operations are translated into Renminbi at the applicable rates quoted by the PBOC prevailing on the transaction dates. Balance sheet items, including goodwill arising on consolidation of foreign operations are translated into Renminbi at the closing foreign exchange rates at the balance sheet date. The income and expenses of foreign operations are translated into Renminbi at the spot exchange rates or an exchange rate that approximates the spot exchange rates on the transaction dates. The resulting exchange differences are recognized in other comprehensive income and accumulated in equity in the other reserves. On disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation is reclassified from equity to the consolidated statement of income when the profit or loss on disposal is recognized. |
Cash and cash equivalents | (c) Cash and cash equivalents Cash equivalents consist of time deposits with financial institutions with an initial term of less than three months when purchased. Cash equivalents are stated at cost, which approximates fair value. |
Trade, bills and other receivables | (d) Trade, bills and other receivables Trade, bills and other receivables are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method, less impairment losses for bad and doubtful debts (Note 2(k)). Trade, bills and other receivables are derecognized if the Group’s contractual rights to the cash flows from these financial assets expire or if the Group transfers these financial assets to another party without retaining control or substantially all risks and rewards of the assets. |
Inventories | (e) Inventories Inventories are stated at the lower of cost and net realizable value. Cost includes the cost of purchase computed using the weighted average method and, in the case of work in progress and finished goods, direct labor and an appropriate proportion of production overheads. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. |
Property, plant and equipment | (f) Property, plant and equipment An item of property, plant and equipment is initially recorded at cost, less accumulated depreciation and impairment losses (Note 2(o)). The cost of an asset comprises its purchase price, any directly attributable costs of bringing the asset to working condition and location for its intended use. The Group recognizes in the carrying amount of an item of property, plant and equipment the cost of replacing part of such an item when that cost is incurred, when it is probable that the future economic benefits embodied with the item will flow to the Group and the cost of the item can be measured reliably. All other expenditure is recognized as an expense in the consolidated statement of income in the year in which it is incurred. Gains or losses arising from the retirement or disposal of an item of property, plant and equipment, other than oil and gas properties, are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized as income or expense in the consolidated statement of income on the date of retirement or disposal. Depreciation is provided to write off the cost amount of items of property, plant and equipment, other than oil and gas properties, over its estimated useful life on a straight-line basis, after taking into account its estimated residual value, as follows: Estimated usage period Estimated residuals rate Buildings 12 to 50 years Equipment, machinery and others 4 to 30 years Where parts of an item of property, plant and equipment have different useful lives, the cost of the item is allocated on a reasonable basis between the parts and each part is depreciated separately. Both the useful life of an asset and its residual value, if any, are reassessed annually. |
Oil and gas properties | (g) Oil and gas properties The Group uses the successful efforts method of accounting for its oil and gas producing activities. Under this method, costs of development wells, the related supporting equipment and proved mineral interests in properties are capitalized. The cost of exploratory wells is initially capitalized as construction in progress pending determination of whether the well has found proved reserves. The impairment of exploratory well costs occurs upon the determination that the well has not found proved reserves. The exploratory well costs are usually not carried as an asset for more than one year following completion of drilling, unless (i) the well has found a sufficient quantity of reserves to justify its completion as a producing well if the required capital expenditure is made; (ii) drilling of the additional exploratory wells is under way or firmly planned for the near future; or (iii) other activities are being undertaken to sufficiently progress the assessing of the reserves and the economic and operating viability of the project. All other exploration costs, including geological and geophysical costs, other dry hole costs and annual lease rentals to explore for or use oil and natural gas, are expensed as incurred. Capitalized costs of proved oil and gas properties are amortized on a unit-of-production method based on volumes produced and reserves. Management estimates future dismantlement costs for oil and gas properties with reference to engineering estimates after taking into consideration the anticipated method of dismantlement required in accordance with the industry practices and the future cash flows are adjusted to reflect such risks specific to the liability, as appropriate. These estimated future dismantlement costs are discounted at a pre-tax risk-free rate and are capitalized as oil and gas properties, which are subsequently amortized as part of the costs of the oil and gas properties. |
Lease prepayments | (h) Lease prepayments Lease prepayments represent land use rights paid to the relevant government authorities. Land use rights are carried at cost less accumulated amount charged to expense and impairment losses (Note 2(o)). The cost of lease prepayments is charged to expense on a straight-line basis over the respective periods of the rights. |
Construction in progress | (i) Construction in progress Construction in progress represents buildings, oil and gas properties, various plant and equipment under construction and pending installation, and is stated at cost less impairment losses (Note 2(o)). Cost comprises direct costs of construction as well as interest charges, and foreign exchange differences on related borrowed funds to the extent that they are regarded as an adjustment to interest charges, during the periods of construction. Construction in progress is transferred to property, plant and equipment when the asset is substantially ready for its intended use. No depreciation is provided in respect of construction in progress. |
Goodwill | (j) Goodwill Goodwill represents amounts arising on acquisition of subsidiaries, associates or joint ventures. Goodwill represents the difference between the cost of acquisition and the fair value of the net identifiable assets acquired. Prior to January 1, 2008, the acquisition of the non-controlling interests of a consolidated subsidiary was accounted for using the acquisition method whereby the difference between the cost of acquisition and the fair value of the net identifiable assets acquired (on a proportionate share) was recognized as goodwill. From January 1, 2008, any difference between the amount by which the non-controlling interest is adjusted (such as through an acquisition of the non-controlling interests) and the cash or other considerations paid is recognized in equity. Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business combination is allocated to each cash-generating unit, or groups of cash-generating units, that is expected to benefit the synergies of the combination and is tested annually for impairment (Note 2(o)). In respect of associates or joint ventures, the carrying amount of goodwill is included in the carrying amount of the interest in the associates or joint ventures and the investment as a whole is tested for impairment whenever there is objective evidence of impairment (Note 2(o)). |
Financial assets | (k) Financial assets (i) Classification and measurement The Group classifies financial assets into different categories depending on the business model for managing the financial assets and the contractual terms of cash flows of the financial assets: a) financial assets measured at amortized cost, b) financial assets measured at fair value through other comprehensive income, c) financial assets measured at fair value through profit or loss. A contractual cash flow characteristic which could have only a de minimis effect, or could have an effect that is more than de minimis but is not genuine, does not affect the classification of the financial asset. Financial assets are initially recognized at fair value. For financial assets measured at fair value through profit or loss, the relevant transaction costs are recognized in profit or loss. The transaction costs for other financial assets are included in the initially recognized amount. Trade accounts receivable and bills receivable arising from sale of goods or rendering services, without significant financing component, are initially recognized based on the transaction price expected to be entitled by the Group. Debt instruments Debt instruments held by the Group mainly includes cash and cash equivalents, time deposits with financial institutions, receivables. These financial assets are measured at amortized cost. The business model for managing such financial assets by the Group are held for collection of contractual cash flows. The contractual cash flow characteristics are to give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount out-standing. Interest income from these financial assets is recognized using the effective interest rate method Equity instruments Equity instruments that the Group has no power to control, jointly control or exercise significant influence over, are measured at fair value through profit or loss and presented in financial assets at fair value through profit or loss. In addition, the Group designates some equity instruments that are not held for trading as financial assets at fair value through other comprehensive income, are presented in financial assets at fair value through other comprehensive income. The relevant dividends of these financial assets are recognized in profit or loss. When derecognized, the cumulative gain or loss previously recognized in other comprehensive income is transferred to retained earnings. (ii) Impairment The Group recognizes a loss allowance for expected credit losses on a financial asset that is measured at amortized cost. The Group measures and recognizes expected credit losses, considering reasonable and supportable information about the relevant past events, current conditions and forecasts of future economic conditions. The Group measures the expected credit losses of financial instruments on different stages at each balance sheet date. For financial instruments that have no significant increase in credit risk since the initial recognition, on first stage, the Group measures the loss allowance at an amount equal to 12-month expected credit losses. If there has been a significant increase in credit risk since the initial recognition of a financial instrument but credit impairment has not occurred, on second stage, the Group recognizes a loss allowance at an amount equal to lifetime expected credit losses. If credit impairment has occurred since the initial recognition of a financial instrument, on third stage, the Group recognizes a loss allowance at an amount equal to lifetime expected credit losses. For financial instruments that have low credit risk at the balance sheet date, the Group assumes that there is no significant increase in credit risk since the initial recognition, and measures the loss allowance at an amount equal to 12-month expected credit losses. For financial instruments on the first stage and the second stage, and that have low credit risk, the Group calculates interest income according to carrying amount without deducting the impairment allowance and effective interest rate. For financial instruments on the third stage, interest income is calculated according to the carrying amount minus amortized cost after the provision of impairment allowance and effective interest rate. For receivables related to revenue, the Group measures the loss allowance at an amount equal to lifetime expected credit losses. The Group recognizes the loss allowance accrued or written back in profit or loss. (iii) Derecognition The Group derecognizes a financial asset when: a) the contractual right to receive cash flows from the financial asset expires; b) the Group transfers the financial asset and substantially all the risks and rewards of ownership of the financial asset; c) the financial asset has been transferred and the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, but the Group has not retained control. On derecognition of financial assets at fair value through other comprehensive income, the difference between the carrying amounts and the sum of the consideration received and any accumulated gain or loss previously recognized in other comprehensive income, is recognized in retained earnings. While on derecognition of other financial assets, this difference is recognized in profit or loss. (iv) Accounting policy applied until December 31, 2017 Classification Until December 31, 2017, the group classified its financial assets in the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, and available-for-sale financial assets. The classification depended on the purpose for which the investments were acquired. Management determined the classification of its investments at initial recognition. Subsequent measurement The measurement at initial recognition did not change on adoption of IFRS 9. Subsequent to the initial recognition, loans and receivables and held-to-maturity investments were carried at amortized cost using the effective interest method. Available-for-sale financial assets and financial assets at fair value through profit or loss were subsequently carried at fair value. Gains or losses arising from changes in the fair value were recognized as follows: for financial assets at fair value through profit or loss - in profit or loss within other gains/(losses), for available-for-sale financial assets - in other comprehensive income. When securities classified as available-for-sale were derecognized or impaired, the accumulated gains or losses recognized in other comprehensive income were reclassified to the consolidated income statement. Impairment Trade accounts receivables, other receivables and investment in equity securities that do not have a quoted market price in an active market are reviewed at each balance sheet date to determine whether there is objective evidence of impairment. If any such evidence exists, an impairment loss is determined and recognized. The impairment loss is measured as the difference between the asset’s carrying amount and the estimated future cash flows, discounted at the current market rate of return for a similar financial asset where the effect of discounting is material, and is recognized as an expense in the consolidated income statement. Impairment losses for trade and other receivables are reversed through the consolidated income statement if in a subsequent period the amount of the impairment losses decreases. Impairment losses for equity securities carried at cost are not reversed. |
Financial liabilities | (l) Financial liabilities The Group, at initial recognition, classifies financial liabilities as either financial liabilities subsequently measured at amortized cost or financial liabilities at fair value through profit or loss. The Group’s financial liabilities are mainly financial liabilities measured at amortized cost, including bills payable, trade accounts payable, other payables, and loans, etc. These financial liabilities are initially measured at the amount of their fair value after deducting transaction costs and use the effective interest rate method for subsequent measurement. Where the present obligations of financial liabilities are completely or partially discharged, the Group derecognizes these financial liabilities or discharged parts of obligations. The differences between the carrying amounts and the consideration received are recognized in profit or loss. |
Determination of fair value for financial instruments | (m) Determination of fair value for financial instruments If there is an active market for financial instruments, the quoted price in the active market is used to measure fair values of the financial instruments. If no active market exists for financial instruments, valuation techniques are used to measure fair values. In valuation, the Group adopts valuation techniques that are applicable in the current situation and have sufficient available data and other information to support it, and selects input values that are consistent with the asset or liability characteristics considered by market participants in the transaction of relevant assets or liabilities, and gives priority to relevant observable input values. Use of unobservable input values where relevant observable input values cannot be obtained or are not practicable. |
Derivative financial instruments and hedge accounting | (n) Derivative financial instruments and hedge accounting Derivative financial instruments are recognized initially at fair value. At each balance sheet date, the fair value is remeasured. The gain or loss on remeasurement to fair value is recognized immediately in profit or loss, except where the derivatives qualify for hedge accounting. Hedge accounting is a method which recognizes the offsetting effects on profit or loss (or other comprehensive income) of changes in the fair values of the hedging instrument and the hedged item in the same accounting period, to represent the effect of risk management activities. Hedged items are the items that expose the Group to risks of changes in future cash flows and that are designated as being hedged and that must be reliably measurable. The Group’s hedged items include a forecast transaction that is settled with an undetermined future market price and exposes the Group to risk of variability in cash flows, etc. A hedging instrument is a designated derivative whose changes in cash flows are expected to offset changes in cash flows of the hedged item. The hedging relationship meets all of the following hedge effectiveness requirements: (i) There is an economic relationship between the hedged item and the hedging instrument, which shares a risk and that gives rise to opposite changes in fair value that tend to offset each other. (ii) The effect of credit risk does not dominate the value changes that result from that economic relationship. (iii) The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item. However, that designation does not reflect an imbalance between the weightings of the hedged item and the hedging instrument. Cash flow hedges Cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with all, or a component of, a recognized asset or liability (such as all or some future interest payments on variable-rate debt) or a highly probable forecast transaction, and could affect profit or loss. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. As long as a cash flow hedge meets the qualifying criteria for hedge accounting, the separate component of equity associated with the hedged item (cash flow hedge reserve) is adjusted to the lower of the following (in absolute amounts): (i) The cumulative gain or loss on the hedging instrument from inception of the hedge; and (ii) The cumulative change in fair value (present value) of the hedged item (i.e. the present value of the cumulative change in the hedged expected future cash flows) from inception of the hedge. The gain or loss on the hedging instrument that is determined to be an effective hedge is recognized in other comprehensive income. The portion of the gain or loss on the hedging instrument that is determined to be an ineffective hedge is recognized in profit or loss. If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or a hedged forecast transaction for a non-financial asset or a nonfinancial liability becomes a firm commitment for which fair value hedge accounting is applied, the entity removes that amount from the cash flow hedge reserve and include it directly in the initial cost or other carrying amount of the asset or the liability. This is not a reclassification adjustment and hence it does not affect other comprehensive income. For cash flow hedges, other than those covered by the preceding policy statements, that amount is reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows affect profit or loss. If the amount that has been accumulated in the cash flow hedge reserve is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, the Group immediately reclassifies the amount that is not expected to be recovered into profit or loss. When the hedging relationship no longer meets the risk management objective on the basis of which it qualified for hedge accounting (ie the entity no longer pursues that risk management objective), or when a hedging instrument expires or is sold, terminated, exercised, or there is no longer an economic relationship between the hedged item and the hedging instrument or the effect of credit risk starts to dominate the value changes that result from that economic relationship or no longer meets the criteria for hedge accounting, the Group discontinues prospectively the hedge accounting treatments. If the hedged future cash flows are still expected to occur, that amount remains in the cash flow hedge reserve and is accounted for as cash flow hedges. If the hedged future cash flows are no longer expected to occur, that amount is immediately reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment. A hedged future cash flow that is no longer highly probable to occur may still be expected to occur, if the hedged future cash flows are still expected to occur, that amount remains in the cash flow hedge reserve and is accounted for as cash flow hedges. |
Impairment of assets | (o) Impairment of assets The carrying amounts of assets, including property, plant and equipment, construction in progress, lease prepayments and other assets, are reviewed at each balance sheet date to identify indicators that the assets may be impaired. These assets are tested for impairment whenever events or changes in circumstances indicate that their recorded carrying amounts may not be recoverable. When such a decline has occurred, the carrying amount is reduced to the recoverable amount. For goodwill, the recoverable amount is estimated at each balance sheet date. The recoverable amount is the greater of the fair value less costs to disposal and the value in use. In determining the value in use, expected future cash flows generated by the asset are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where an asset does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently (i.e. a cash-generating unit). The amount of the reduction is recognized as an expense in the consolidated statement of income. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit and then, to reduce the carrying amount of the other assets in the unit on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs to disposal, or value in use, if determinable. Management assesses at each balance sheet date whether there is any indication that an impairment loss recognized for an asset, except in the case of goodwill, in prior years may no longer exist. An impairment loss is reversed if there has been a favourable change in the estimates used to determine the recoverable amount. A subsequent increase in the recoverable amount of an asset, when the circumstances and events that led to the write-down or write-off cease to exist, is recognized as an income. The reversal is reduced by the amount that would have been recognized as depreciation had the write-down or write-off not occurred. An impairment loss in respect of goodwill is not reversed. |
Trade, bills and other payables | (p) Trade, bills and other payables Trade, bills and other payables are initially recognized at fair value and thereafter stated at amortized cost unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Interest-bearing borrowings | (q) Interest-bearing borrowings Interest-bearing borrowings are recognized initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with any difference between cost and redemption value being recognized in the consolidated statement of income over the period of borrowings using the effective interest method. |
Provisions and contingent liability | (r) Provisions and contingent liability A provision is recognized for liability of uncertain timing or amount when the Group has a legal or constructive obligation arising as a result of a past event, when it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. When it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. Provisions for future dismantlement costs are initially recognized based on the present value of the future costs expected to be incurred in respect of the Group’s expected dismantlement and abandonment costs at the end of related oil and gas exploration and development activities. Any subsequent change in the present value of the estimated costs, other than the change due to passage of time which is regarded as interest cost, is reflected as an adjustment to the provision and oil and gas properties. |
Revenue recognition | (s) Revenue recognition Revenues arises in the course of the Group’s ordinary activities, and increases in economic benefits in the form of inflows that result in an increase in equity, other than those relating to contributions from equity participants. The Group sells crude oil, natural gas, petroleum and chemical products, etc. Revenue is recogniesd according to the expected consideration amount, when a customer obtains control over the relevant goods or services. To determine whether a customer obtains control of a promised asset, the Group shall consider indicators of the transfer of control, which include, but are not limited to, the Group has a present right to payment for the asset; the Group has transferred physical possession of the asset to the customer; the customer has the significant risks and rewards of ownership of the asset; the customer has accepted the asset. (i) Sales of goods Sales are recognized when control of the goods have transferred, being when the products are delivered to the customer. Advance from customers but goods not yet delivered is recorded as contract liabilities and is recognized as revenues when a customer obtains control over the relevant goods. (ii) Accounting policy applied until December 31, 2017 The Group has applied IFRS 15 retrospectively, but has elected not to restate comparative information. As a result, the comparative information provided continues to be accounted for in accordance with the Group’s previous accounting policy. Revenues associated with the sale of crude oil, natural gas, petroleum and chemical products and ancillary materials are recorded when the customer accepts the goods and the significant risks and rewards of ownership and title have been transferred to the buyer. Revenue from the rendering of services is recognized in the consolidated income statement upon performance of the services. No revenue is recognized if there are significant uncertainties regarding recovery of the consideration due, the possible return of goods, or when the amount of revenue and the costs incurred or to be incurred in respect of the transaction cannot be measured reliably. |
Government grants | (t) Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the group will comply with all attached conditions. Government grants relating to costs are deferred and recognized in the profit or loss over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and are credited to profit or loss on a straight-line basis over the expected lives of the related assets |
Borrowing costs | (u) Borrowing costs Borrowing costs are expensed in the consolidated statements of income in the period in which they are incurred, except to the extent that they are capitalized as being attributable to the construction of an asset which necessarily takes a period of time to get ready for its intended use. |
Repairs and maintenance expenditure | (v) Repairs and maintenance expenditure Repairs and maintenance expenditure is expensed as incurred. |
Environmental expenditures | (w) Environmental expenditures Environmental expenditures that relate to current ongoing operations or to conditions caused by past operations are expensed as incurred. Liabilities related to future remediation costs are recorded when environmental assessments and/or cleanups are probable and the costs can be reliably estimated. As facts concerning environmental contingencies become known to the Group, the Group reassesses its position both with respect to accrued liabilities and other potential exposures. |
Research and development expense | (x) Research and development expense Research and development expenditures that cannot be capitalized are expensed in the period in which they are incurred. Research and development expense amounted to RMB 5,941, RMB 6,423 and RMB 7,956 for the years ended December 31, 2016, 2017 and 2018, respectively. |
Operating leases | (y) Operating leases Operating lease payments are charged to the consolidated statement of income on a straight-line basis over the period of the respective leases. |
Employee benefits | (z) Employee benefits The contributions payable under the Group’s retirement plans are recognized as an expense in the consolidated statement of income as incurred and according to the contribution determined by the plans. Further information is set out in Note 35. Termination benefits, such as employee reduction expenses, are recognized when, and only when, the Group demonstrably commits itself to terminate employment or to provide benefits as a result of voluntary redundancy by having a detailed formal plan which is without realistic possibility of withdrawal. |
Income tax | (aa) Income tax Income tax comprises current and deferred tax. Current tax is calculated on taxable income by applying the applicable tax rates. Deferred tax is provided using the balance sheet liability method on all temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes only to the extent that it is probable that future taxable income will be available against which the assets can be utilized. Deferred tax is calculated on the basis of the enacted tax rates or substantially enacted tax rates that are expected to apply in the period when the asset is realized or the liability is settled. The effect on deferred tax of any changes in tax rates is charged or credited to the consolidated statement of income, except for the effect of a change in tax rate on the carrying amount of deferred tax assets and liabilities which were previously charged or credited to other comprehensive income or directly in equity. The tax value of losses expected to be available for utilization against future taxable income is set off against the deferred tax liability within the same legal tax unit and jurisdiction to the extent appropriate, and is not available for set off against the taxable profit of another legal tax unit. The carrying amount of a deferred tax asset is reviewed at each balance sheet date and is reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Dividends | (bb) Dividends Dividends and distributions of profits proposed in the profit appropriation plan which will be authorized and declared after the balance sheet date, are not recognized as a liability at the balance sheet date and are separately disclosed in the notes to the financial statements. Dividends are recognized as a liability in the period in which they are declared. |
Segment reporting | (cc) Segment reporting Operating segments, and the amounts of each segment item reported in the consolidated financial statements, are identified from the financial information provided regularly to the Group’s chief operating decision maker for the purposes of allocating resources to, and assessing the performance of the Group’s various lines of business. |
PRINCIPAL ACTIVITIES, ORGANIZ_2
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION [abstract] | |
Schedule of adjustments from new accounting policies | Adjustment from Adjustment from December 31, Adoption of Adoption of January 1, Consolidated balance sheet (extract) 2017 IFRS 9 IFRS 15 2018 RMB RMB RMB RMB Non-current assets Financial assets at fair value through other comprehensive income — 1,676 — 1,676 Available-for-sale financial assets 1,676 (1,676) — — Total non-current assets 1,066,455 — — 1,066,455 Current assets Total current assets 529,049 — — 529,049 Current liabilities Contract liabilities(i) — — 120,734 120,734 Other payables(i) 276,582 — (120,734) 155,848 Total current liabilities 579,446 — — 579,446 Non-current liabilities Total non-current liabilities 163,168 — — 163,168 852,890 — — 852,890 Equity Other reserves (2,934) (12) — (2,946) Retained earnings 326,125 12 — 326,137 Total equity 852,890 — — 852,890 (i) Advances from customers were reclassified as contract liabilities by implementation of IFRS 15 'Revenue from Contracts with Customers'. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES [abstract] | |
Disclosure of detailed information about property, plant and equipment | Estimated usage period Estimated residuals rate Buildings 12 to 50 years Equipment, machinery and others 4 to 30 years |
SALES OF GOODS (Tables)
SALES OF GOODS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SALES OF GOODS [abstract] | |
Schedule of sales of goods | Years ended December 31, 2016 2017 2018 RMB RMB RMB Crude oil 336,732 421,585 519,910 Gasoline 508,912 600,113 711,236 Diesel 447,126 503,406 594,008 Basic chemical feedstock 154,992 205,722 250,884 Kerosene 88,195 115,739 168,823 Synthetic resin 91,518 107,633 124,618 Natural Gas 39,464 34,277 43,205 Synthetic fiber monomers and polymers 38,054 61,998 77,572 Others(i) 175,197 249,997 335,357 1,880,190 2,300,470 2,825,613 (i) Others are primarily liquefied petroleum gas and other refinery and chemical by-products and joint products. |
OTHER OPERATING REVENUES (Table
OTHER OPERATING REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER OPERATING REVENUES [abstract] | |
Schedule of other operating revenues | Years ended December 31, 2016 2017 2018 RMB RMB RMB Sale of materials and others 49,812 58,930 64,503 Rental income 909 793 1,063 50,721 59,723 65,566 |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES [abstract] | |
Schedule of selling, general and administrative expenses | Years ended December 31, 2016 2017 2018 RMB RMB RMB Operating lease charges 14,410 12,104 12,297 Auditor’s remuneration: - audit services 73 72 94 - others 2 5 9 Impairment losses - trade accounts receivable 230 (51) 6 - other receivables (12) 159 9 - accounts prepayments 13 2 29 |
PERSONNEL EXPENSES (Tables)
PERSONNEL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PERSONNEL EXPENSES [abstract] | |
Schedule of personnel expenses | Years ended December 31, 2016 2017 2018 RMB RMB RMB Salaries, wages and other benefits 55,502 65,873 68,425 Contributions to retirement schemes (Note 35) 8,385 8,981 9,296 63,887 74,854 77,721 |
TAXES OTHER THAN INCOME TAX (Ta
TAXES OTHER THAN INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TAXES OTHER THAN INCOME TAX [abstract] | |
Schedule of taxes other than income tax | Years ended December 31, 2016 2017 2018 RMB RMB RMB Consumption tax (i) 193,836 192,907 201,901 City construction tax (ii) 18,155 18,274 18,237 Education surcharge 13,695 13,811 13,187 Resources tax 3,871 4,841 6,021 Other 2,449 5,459 7,152 232,006 235,292 246,498 Note: (i) Consumption tax was levied based on sales quantities of taxable products, tax rate of products is presented as below: Effective from January 13, 2015 Products RMB/Ton Gasoline 2,109.76 Diesel 1,411.20 Naphtha 2,105.20 Solvent oil 1,948.64 Lubricant oil 1,711.52 Fuel oil 1,218.00 Jet fuel oil 1,495.20 (ii) City construction tax is levied on an entity based on its total paid amount of value-added tax, consumption tax and business tax. Pursuant to the ‘Circular on the Overall Promotion of Pilot Program of Levying VAT in place of Business Tax’ (Cai Shui [2016] 36) jointly issued by the Ministry of Finance and the State Administration of Taxation, revenue from modern service of the subsidiaries of the Group, are subject to VAT from May 1, 2016, and the applicable tax rate is 6%. Before May 1, 2016, revenue from modern service of the subsidiaries of the Group, are subject to the business tax with a tax rate of 3% to 5%. |
Schedule of detailed information of consumption tax | Effective from January 13, 2015 Products RMB/Ton Gasoline 2,109.76 Diesel 1,411.20 Naphtha 2,105.20 Solvent oil 1,948.64 Lubricant oil 1,711.52 Fuel oil 1,218.00 Jet fuel oil 1,495.20 |
OTHER OPERATING INCOME_(EXPEN_2
OTHER OPERATING INCOME/(EXPENSE), NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER OPERATING INCOME/(EXPENSE), NET [abstract] | |
Schedule of other operating income/(expense), net | Years ended December 31, 2016 2017 2018 RMB RMB RMB Government grant (i) 4,101 4,893 7,539 Ineffective portion of change in fair value of cash flow hedges 304 (813) (1,978) Net realized and unrealized gain/(loss) on derivative financial instruments not qualified as hedging 195 (909) 191 Impairment losses on long-lived assets (ii) (16,425) (21,258) (6,281) Loss on disposal of property, plant, equipment and other non-currents assets, net (1,489) (1,518) (1,526) Fines, penalties and compensations (152) (89) (276) Donations (133) (152) (180) Gain on remeasurement of interests in the Shanghai SECCO (Note 33) — 3,941 — Gain on dilution and remeasurement of interests in the Pipeline Ltd 20,562 — — Others (1,277) (649) (2,849) 5,686 (16,554) (5,360) Note: (i) Government grants for the years ended December 31, 2016, 2017 and 2018 primarily represent financial appropriation income and non-income tax refunds received from respective government agencies without conditions or other contingencies attached to the receipts of the grants. (ii) Impairment losses recognized on long-lived assets of the exploration and production (“E&P”) segments were RMB 11,605, RMB 13,556 and RMB 4,274 for the years ended December 31, 2016, 2017 and 2018, respectively. The impairment comprised RMB 10,594, RMB 12,611 and RMB 4,274 on property, plant and equipment for the three years respectively, RMB 907 on investment in joint venture for the year ended December 31, 2017, RMB 1,005 and RMB 21 on construction in progress for the years ended December 31, 2016 and 2017, RMB 6 on goodwill for the year ended December 31, 2016, and RMB 17 on available for sale financial assets for the year ended December 31, 2017. The primary factor resulting in the E&P segment impairment loss for the years ended December 31, 2018 was downward revision of oil and gas reserve in certain fields. The carrying values of these E&P properties were written down to respective recoverable amounts which were determined based on the present values of the expected future cash flows of the asset using a pre-tax discount rate of 10.47%, 10.47% and 10.47% for the years ended December 31, 2016, 2017 and 2018, respectively. Further future downward revisions to the Group’s oil price outlook would lead to further impairments which, in aggregate, are likely to be material. It is estimated that a general decrease of 5% in oil price, with all other variables held constant, would result in additional impairment loss on the Group’s properties, plant and equipment relating to oil and gas producing activities by approximately RMB 312. It is estimated that a general increase of 5% in operating cost, with all other variables held constant, would result in additional impairment loss on the Group’s properties, plant and equipment relating to oil and gas producing activities by approximately RMB 315. It is estimated that a general increase of 5% in discount rate, with all other variables held constant, would result in less impairment loss on the Group’s properties, plant and equipment relating to oil and gas producing activities by approximately RMB 5. The primary factors resulting in the E&P segment impairment loss for the years ended December 31, 2016 and 2017 were downward revision of oil and gas reserve due to price change and high operating and development cost for certain oil fields. |
INTEREST EXPENSE (Tables)
INTEREST EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTEREST EXPENSE [abstract] | |
Schedule of interest expense | Years ended December 31, 2016 2017 2018 RMB RMB RMB Interest expense incurred 9,021 6,368 6,376 Less: Interest expense capitalized* (859) (723) (493) 8,162 5,645 5,883 Accretion expenses (Note 30) 1,057 1,501 1,438 Interest expense 9,219 7,146 7,321 * Interest rates per annum at which borrowing costs were capitalized for construction in progress 2.65% to 4.82% 2.37% to 4.41% 2.37% to 4.66% |
INCOME TAX EXPENSE (Tables)
INCOME TAX EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INCOME TAX EXPENSE [abstract] | |
Schedule of income tax expense on consolidated statement of income | Years ended December 31, 2016 2017 2018 RMB RMB RMB Current tax - Provision for the year 21,313 26,668 27,176 - Adjustment of prior years 228 (72) (719) Deferred taxation (Note 23) (834) (10,317) (6,244) 20,707 16,279 20,213 |
Schedule of reconciliation between actual income tax and expected income tax expense | Years ended December 31, 2016 2017 2018 RMB RMB RMB Earnings before income tax 80,151 86,697 99,110 Expected PRC income tax expense at a statutory tax rate of 25% 20,038 21,674 24,778 Tax effect of preferential tax rate (Note i) 83 (793) (1,259) Effect of income taxes at foreign operations 299 (1,394) 77 Tax effect of non-deductible expenses 1,529 1,905 2,351 Tax effect of non-taxable income (2,786) (5,939) (5,033) Tax effect of utilization of previously unrecognized tax losses and temporary differences (453) (613) (779) Tax effect of tax losses not recognized 958 1,485 609 Write-down of deferred tax assets 811 26 188 Adjustment of prior years 228 (72) (719) Actual income tax expense 20,707 16,279 20,213 Note: (i) The provision for PRC current income tax is based on a statutory income tax rate of 25% of the assessable income of the Group as determined in accordance with the relevant income tax rules and regulations of the PRC, except for certain entities of the Group in western regions in the PRC are taxed at preferential income tax rate of 15% through the year 2020. |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER COMPREHENSIVE INCOME [abstract] | |
Schedule of other comprehensive income | Years ended December 31, 2016 2017 2018 Before-tax Tax Net-of-tax Before-tax Tax Net-of-tax Before-tax Tax Net-of-tax amount effect amount amount effect amount amount effect amount RMB RMB RMB RMB RMB RMB RMB RMB RMB Cash flow hedges: Effective portion of changes in fair value of hedging instruments recognized during the year (3,813) 652 (3,161) (1,314) 240 (1,074) (12,500) 2,159 (10,341) Amounts transferred to initial carrying amount of hedged items 13 (2) 11 (4) 1 (3) — — — Reclassification adjustments for amounts transferred to the consolidated statement of income 6,279 (1,115) 5,164 (575) 72 (503) 730 (130) 600 Net movement during the year recognized in other comprehensive income (i) 2,479 (465) 2,014 (1,893) 313 (1,580) (11,770) 2,029 (9,741) Available-for-sale financial assets: Changes in fair value recognized during the year (17) (7) (24) (57) — (57) — — — Changes in the fair value of instruments at fair value through other comprehensive income — — — — — — (41) (12) (53) Net movement during the year recognized in other comprehensive income (17) (7) (24) (57) — (57) (41) (12) (53) Share of other comprehensive income/(loss) of associates and joint ventures 45 — 45 1,053 — 1,053 (240) 11 (229) Foreign currency translation differences 4,298 — 4,298 (3,792) — (3,792) 3,399 — 3,399 Other comprehensive income 6,805 (472) 6,333 (4,689) 313 (4,376) (8,652) 2,028 (6,624) (i) As of December 31, 2017 and 2018, cash flow hedge reserve amounted to losses of RMB 460 and 4,932, respectively, of which losses of RMB 510 and 4,917 were attribute to owners of the company. |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
BASIC AND DILUTED EARNINGS PER SHARE [abstract] | |
Schedule of net income attributable to ordinary owners of Company (diluted) | 2016 2017 2018 RMB RMB RMB Net income attributable to ordinary owners of the Company 46,672 51,244 61,618 After tax effect of employee share option scheme of Shanghai Petrochemical (3) (2) — Net income attributable to ordinary owners of the Company (diluted) 46,669 51,242 61,618 |
Schedule of weighted average number of shares (diluted) | 2016 2017 2018 Number of Number of Number of shares shares shares Weighted average number of shares as of December 31 121,071,209,646 121,071,209,646 121,071,209,646 Weighted average number of shares (diluted) as of December 31 121,071,209,646 121,071,209,646 121,071,209,646 |
FINANCIAL ASSETS AT FAIR VALU_2
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS [abstract] | |
Schedule of financial assets at fair value through profit or loss | December 31, 2017 2018 RMB RMB Structured deposit 51,196 25,550 Equity investments, listed and at quoted market price — 182 51,196 25,732 |
TRADE ACCOUNTS RECEIVABLE AND_2
TRADE ACCOUNTS RECEIVABLE AND BILLS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TRADE ACCOUNTS RECEIVABLE AND BILLS RECEIVABLE [abstract] | |
Schedule of Trade accounts receivable and bills receivable | December 31, 2017 2018 RMB RMB Amounts due from third parties 56,203 50,108 Amounts due from Sinopec Group Company and fellow subsidiaries 7,941 3,170 Amounts due from associates and joint ventures 4,962 4,321 69,106 57,599 Less: Impairment losses for bad and doubtful debts (612) (606) Trade accounts receivable, net 68,494 56,993 Bills receivable 16,207 7,886 84,701 64,879 |
Schedule of ageing analysis of trade accounts and bills receivables | December 31, 2017 2018 RMB RMB Within one year 83,984 64,317 Between one and two years 573 353 Between two and three years 43 124 Over three years 101 85 84,701 64,879 |
Schedule of impairment losses for bad and doubtful debts | 2016 2017 2018 RMB RMB RMB Balance as of January 1 525 683 612 Provision for the year 238 49 83 Written back for the year (8) (100) (77) Written off for the year (72) (21) (19) Others — 1 7 Balance as of December 31 683 612 606 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVENTORIES [abstract] | |
Schedule of inventories | December 31, 2017 2018 RMB RMB Crude oil and other raw materials 85,975 85,469 Work in progress 14,774 13,690 Finished goods 84,448 88,929 Spare parts and consumables 2,651 2,872 187,848 190,960 Less: Allowance for diminution in value of inventories (1,155) (6,376) 186,693 184,584 |
Schedule of allowance for diminution in value of inventories | 2016 2017 2018 RMB RMB RMB Balance as of January 1 4,402 920 1,155 Allowance for the year 430 436 5,535 Reversal of allowance on disposal (10) (13) (114) Written off (4,021) (190) (217) Other increase 119 2 17 Balance as of December 31 920 1,155 6,376 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [abstract] | |
Schedule of prepaid expenses and other current assets | December 31, 2017 2018 RMB RMB Other receivables 17,704 26,455 Advances to suppliers 4,901 5,937 Value-added input tax to be deducted 17,926 21,331 Prepaid income tax 398 300 40,929 54,023 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROPERTY, PLANT AND EQUIPMENT [abstract] | |
Schedule of detailed information about property, plant and equipment | Oil and Equipment, Plants and gas machinery buildings properties and others Total RMB RMB RMB RMB Cost: Balance as of January 1, 2017 114,920 650,685 892,936 1,658,541 Additions 854 1,627 11,983 14,464 Transferred from construction in progress 6,789 19,881 54,605 81,275 Reclassifications (673) (50) 723 — Reclassification to lease prepayments and other long-term assets (859) (1,702) (8,751) (11,312) Disposals (878) (211) (10,985) (12,074) Exchange adjustments (140) (2,573) (199) (2,912) Balance as of December 31, 2017 120,013 667,657 940,312 1,727,982 Balance as of January 1, 2018 120,013 667,657 940,312 1,727,982 Additions 221 1,567 3,856 5,644 Transferred from construction in progress 3,741 24,366 45,103 73,210 Reclassifications 1,634 138 (1,772) — Reclassification to lease prepayments and other long-term assets (483) — (3,828) (4,311) Disposals (3,183) (146) (18,323) (21,652) Exchange adjustments 98 2,142 147 2,387 Balance as of December 31, 2018 122,041 695,724 965,495 1,783,260 Accumulated depreciation: Balance as of January 1, 2017 48,572 435,561 483,814 967,947 Depreciation for the year 4,075 55,057 46,585 105,717 Impairment losses for the year 554 8,832 10,450 19,836 Reclassifications (122) (77) 199 — Reclassification to lease prepayments and other long-term assets (238) (1,305) (2,682) (4,225) Disposals (584) (195) (9,079) (9,858) Exchange adjustments (57) (2,056) (96) (2,209) Balance as of December 31, 2017 52,200 495,817 529,191 1,077,208 Balance as of January 1, 2018 52,200 495,817 529,191 1,077,208 Depreciation for the year 4,038 48,616 47,250 99,904 Impairment losses for the year 274 4,027 1,848 6,149 Reclassifications 494 76 (570) — Reclassification to lease prepayments and other long-term assets (120) — (1,390) (1,510) Disposals (1,795) (125) (16,331) (18,251) Exchange adjustments 43 1,877 78 1,998 Balance as of December 31, 2018 55,134 550,288 560,076 1,165,498 Net book value: Balance as of January 1, 2017 66,348 215,124 409,122 690,594 Balance as of December 31, 2017 67,813 171,840 411,121 650,774 Balance as of December 31, 2018 |
CONSTRUCTION IN PROGRESS (Table
CONSTRUCTION IN PROGRESS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CONSTRUCTION IN PROGRESS [abstract] | |
Schedule of construction in progress | 2017 2018 RMB RMB Balance as of January 1 129,581 118,645 Additions 85,552 108,555 Dry hole costs written off (6,876) (6,921) Transferred to property, plant and equipment (81,229) (73,210) Reclassification to lease prepayments and other long-term assets (7,773) (10,066) Impairment losses for the year (252) (28) Disposals (315) (19) Exchange adjustments (43) 7 Balance as of December 31 118,645 136,963 |
Schedule of net changes in capitalized cost of exploratory wells in E&P segment | 2016 2017 2018 RMB RMB RMB At beginning of year 16,772 12,192 9,737 Additions, net of amount that were capitalized and subsequently expensed in the same year, pending the determination of proved reserves 6,321 5,567 7,172 Transferred to oil and gas properties based on the determination of proved reserves (3,716) (1,839) (2,387) Dry hole costs written off (7,185) (6,183) (7,226) At end of year 12,192 9,737 7,296 |
Schedule of aging of capitalized exploratory well costs based on drilling completion date | December 31, 2016 2017 2018 RMB RMB RMB One year or less 4,731 4,917 3,467 Over one year 7,461 4,820 3,829 12,192 9,737 7,296 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GOODWILL [abstract] | |
Schedule of goodwill | December 31, 2017 2018 RMB RMB Cost 16,495 16,537 Less: Accumulated impairment losses (7,861) (7,861) 8,634 8,676 |
Schedule of goodwill allocated to cash-generating units | December 31, Principal activities 2017 2018 RMB RMB Sinopec Beijing Yanshan Petrochemical Branch (“Sinopec Yanshan”) Manufacturing of intermediate petrochemical products and petroleum products 1,004 1,004 Sinopec Zhenhai Refining and Chemical Branch (“Sinopec Zhenhai”) Manufacturing of intermediate petrochemical products and petroleum products 4,043 4,043 Shanghai SECCO Petrochemical Company Limited ("Shanghai SECCO")(Note 33) Production and sale of petrochemical products 2,541 2,541 Sinopec (Hong Kong) Limited Trading of petrochemical products 879 921 Other units without individually significant goodwill 167 167 8,634 8,676 |
INTEREST IN ASSOCIATES (Tables)
INTEREST IN ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTEREST IN ASSOCIATES [abstract] | |
Schedule of principal associates | Percentage Particulars Percentage of equity Form of of issued of equity held by the business and paid held by the Company’s Principal Country of Principal place Name of company structure up capital Company subsidiaries activities incorporation of business % % Sinopec Sichuan to East China Gas Pipeline Co., Ltd. ("Pipeline Ltd") Incorporated Registered capital RMB 200 million — 50.00 Operation of natural gas pipelines and auxiliary facilities PRC PRC Sinopec Finance Company Limited ("Sinopec Finance") Incorporated Registered capital RMB 18,000 million 49.00 — Provision of non-banking financial services PRC PRC PAO SIBUR Holding (“SIBUR”) Incorporated Registered capital RUB 21,784 million — 10.00 Processing natural gas and manufacturing petrochemical products Russia Russia Zhongtian Synergetic Energy Company Limited ("Zhongtian Synergetic Energy") Incorporated Registered capital RMB 17,516 million — 38.75 Mining coal and manufacturing of coal-chemical products PRC PRC Caspian Investments Resources Ltd. ("CIR") Incorporated Registered capital USD 10,000 — 50.00 Crude oil and natural gas extraction British Virgin Islands The Republic of Kazakhstan |
Schedule of reconciliation of summarised financial information of associate accounted for using equity method to carrying amount of interest in associate | Zhongtian Pipeline Ltd Sinopec Finance SIBUR (i) Synergetic Energy CIR December 31, December 31, December 31, December 31, December 31, 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets 11,317 12,498 161,187 209,837 20,719 22,502 8,232 7,477 5,612 6,712 Non-current assets 40,972 39,320 17,782 16,359 158,938 170,796 51,553 49,961 1,673 1,828 Current liabilities (933) (1,020) (154,212) (200,402) (20,554) (23,293) (10,668) (7,252) (908) (961) Non-current liabilities (3,176) (3,026) (6) (332) (61,771) (58,628) (31,494) (31,436) (170) (673) Net assets 48,180 47,772 24,751 25,462 97,332 111,377 17,623 18,750 6,207 6,906 Net assets attributable to owners of the Company 48,180 47,772 24,751 25,462 96,761 110,860 17,623 18,750 6,207 6,906 Net assets attributable to non-controlling interests — — — — 571 517 — — — — Share of net assets from associates 24,090 23,886 12,128 12,476 9,676 11,086 6,829 7,266 3,104 3,453 Carrying Amounts 24,090 23,886 12,128 12,476 9,676 11,086 6,829 7,266 3,104 3,453 |
Schedule of summarised statement of comprehensive income of associates | Zhongtian Synergetic Year ended Pipeline Ltd (ii) Sinopec Finance SIBUR(i) Energy CIR December 31 2016 2017 2018 2016 2017 2018 2017 2018 2016 2017 2018 2016 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 191 5,644 4,746 2,442 3,542 4,536 52,496 59,927 — 3,569 12,235 2,205 2,563 2,856 Net income/(loss) for the year 51 2,543 2,022 1,526 1,536 1,868 9,601 10,400 — 123 1,142 (3,518) (610) 583 Other comprehensive (loss)/income — — — (175) (246) (157) (260) 6,410 — — — 662 (334) 116 Total comprehensive income/(loss) 51 2,543 2,022 1,351 1,290 1,711 9,341 16,810 — 123 1,142 (2,856) (944) 699 Dividends declared by associates 23 — 1,207 — — 490 221 271 — — — — — — Share of net income/(loss) from associates 26 1,272 1,011 748 753 915 960 1,040 — 48 443 (1,759) (305) 292 Share of other comprehensive (loss)/income from associates(ii) — — — (86) (121) (77) (26) 641 — — — 331 (167) 58 Note: (i) Sinopec is able to exercise significant influence in SIBUR since Sinopec has a member in SIBUR’s Board of Director and has a member in SIBUR’s Management Board. (ii) Including foreign currency translation differences. |
INTEREST IN JOINT VENTURES (Tab
INTEREST IN JOINT VENTURES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INTEREST IN JOINT VENTURES [abstract] | |
Schedule of principal joint ventures | Percentage of Particulars of Percentage of equity held by Principal Country of issued and paid equity held by the Company’s place of Name of company incorporation up capital the Company subsidiaries Principal activities business % % Fujian Refining & Petrochemical Company Limited (“FREP”) PRC Registered capital RMB 14,758 million — 50.00 Manufacturing refining oil products PRC BASF-YPC Company Limited (“BASF-YPC”) PRC Registered capital RMB 12,547 million 30.00 10.00 Manufacturing and distribution of petrochemical products PRC Taihu Limited (“Taihu”) Cyprus Registered capital USD 25,000 — 49.00 Crude oil and natural gas extraction Russia Yanbu Aramco Sinopec Refining Company Ltd. ("YASREF") Saudi Arabia Registered capital USD 1,560 million — 37.50 Petroleum refining and processing business Saudi Arabia Sinopec SABIC Tianjin Petrochemical Company Limited ("Sinopec SABIC Tianjin") PRC Registered capital RMB 9,796 million — 50.00 Manufacturing and distribution of petrochemical products PRC |
Schedule of reconciliation of summarised financial information of joint venture accounted for using equity method to carrying amount of interest in joint venture | Sinopec SABIC FREP BASF-YPC Taihu YASREF Tianjin December 31, December 31, December 31, December 31, December 31, 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets Cash and cash equivalents 5,772 7,388 1,800 1,582 2,352 3,406 4,916 930 6,524 5,110 Other current assets 11,013 9,248 5,335 5,795 2,462 3,689 10,816 10,267 2,709 4,007 Total current assets 16,785 16,636 7,135 7,377 4,814 7,095 15,732 11,197 9,233 9,117 Non-current assets 19,740 19,271 12,075 11,086 7,978 9,216 51,553 51,873 13,248 13,990 Current liabilities Current financial liabilities (1,135) (1,200) (233) (725) (20) (59) (5,407) (4,806) (1,236) (500) Other current liabilities (5,049) (4,939) (1,982) (1,822) (1,914) (2,124) (11,864) (12,217) (4,546) (2,507) Total current liabilities (6,184) (6,139) (2,215) (2,547) (1,934) (2,183) (17,271) (17,023) (5,782) (3,007) Non-current liabilities Non-current financial liabilities (13,654) (12,454) (955) (218) (72) (72) (35,619) (32,364) (4,101) (3,651) Other non-current liabilities (236) (279) (19) (17) (2,686) (2,271) (890) (937) (41) (331) Total non-current liabilities (13,890) (12,733) (974) (235) (2,758) (2,343) (36,509) (33,301) (4,142) (3,982) Net assets 16,451 17,035 16,021 15,681 8,100 11,785 13,505 12,746 12,557 16,118 Net assets attributable to owners of the company 16,451 17,035 16,021 15,681 7,818 11,373 13,505 12,746 12,557 16,118 Net assets attributable to non-controlling interests — — — — 282 412 — — — — Share of net assets from joint ventures 8,226 8,518 6,409 6,272 3,831 5,573 5,064 4,780 6,279 8,059 Carrying Amounts 8,226 8,518 6,409 6,272 3,831 5,573 5,064 4,780 6,279 8,059 |
Schedule of summarised statement of comprehensive income of joint ventures | Sinopec SABIC Year ended FREP BASF-YPC Taihu YASREF Tianjin December 31, 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 41,764 49,356 52,469 17,323 21,020 21,574 9,658 12,520 14,944 41,286 61,587 77,561 16,337 22,286 23,501 Depreciation, depletion and amortization (52) (16) (2,250) (2,275) (1,793) (1,521) (1,043) (715) (664) (2,754) (2,763) (2,823) (33) (36) (1,104) Interest income 130 208 157 19 36 41 40 142 141 33 45 101 30 104 169 Interest expense (929) (857) (647) (173) (71) (43) (113) (142) (151) (1,216) (1,382) (1,382) (245) (223) (167) Earning/(loss) before income tax 6,476 6,977 3,920 2,606 4,565 3,625 2,411 1,697 3,493 28 548 (1,569) 3,184 5,113 3,916 Tax expense (1,574) (1,699) (935) (648) (1,151) (897) (518) (553) (729) 56 57 (249) (783) (1,279) (993) Net income/(loss) for the year 4,902 5,278 2,985 1,958 3,414 2,728 1,893 1,144 2,764 84 605 (1,818) 2,401 3,834 2,923 Other comprehensive income/(loss) — — — — — — 1,851 25 921 647 (554) 1,059 — — — Total comprehensive income/(loss) 4,902 5,278 2,985 1,958 3,414 2,728 3,744 1,169 3,685 731 51 (759) 2,401 3,834 2,923 Dividends declared by joint ventures — 1,250 1,200 155 1,109 1,226 — — — — — — 300 1,375 — Share of net income/(loss) from joint ventures 2,451 2,639 1,493 783 1,366 1,091 895 541 1,307 31 227 (682) 1,201 1,917 1,462 Share of other comprehensive income/(loss) from joint ventures — — — — — — 875 12 435 243 (208) 397 — — — |
DEFERRED TAX ASSETS AND LIABI_2
DEFERRED TAX ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
DEFERRED TAX ASSETS AND LIABILITIES [abstract] | |
Schedule of deferred tax assets and liabilities | Assets Liabilities December 31, December 31, 2017 2018 2017 2018 RMB RMB RMB RMB Receivables and inventories 381 2,563 — — Payables 1,925 1,808 — — Cash flow hedges 165 1,131 (50) (27) Property, plant and equipment 14,150 15,427 (9,928) (8,666) Tax losses carried forward 2,325 3,709 — — Available-for-sale financial assets 117 — — — Financial assets at fair value through other comprehensive income — 117 — (1) Intangible assets 227 474 (563) (535) Others 180 174 (264) (428) Deferred tax assets/(liabilities) 19,470 25,403 (10,805) (9,657) |
Schedule of movements in the deferred tax assets and liabilities | Recognized in Recognized in Balance as of consolidated other Balance as of January 1, statement of comprehensive December 31, 2016 income income Others 2016 RMB RMB RMB RMB RMB Receivables and inventories 1,552 (1,505) 6 34 87 Payables 413 (22) — — 391 Cash flow hedges 250 — (465) — (215) Property, plant and equipment (9,131) 6,063 (392) 109 (3,351) Tax losses carried forward 5,883 (3,426) 20 — 2,477 Available-for-sale financial assets — (139) (7) 146 — Intangible assets 203 (1) — 58 260 Others 40 (136) — — (96) Net deferred tax (liabilities)/assets (790) 834 (838) 347 (447) Recognized in Recognized in Acquisition Balance as Balance as of consolidated other of of January 1, statement of comprehensive Shanghai December 31, 2017 income income Others SECCO 2017 RMB RMB RMB RMB RMB RMB Receivables and inventories 87 300 (5) (1) — 381 Payables 391 1,534 — — — 1,925 Cash flow hedges (215) 9 313 8 — 115 Property, plant and equipment (3,351) 8,475 287 (8) (1,181) 4,222 Tax losses carried forward 2,477 (135) (17) — — 2,325 Available-for-sale financial assets — 117 — — — 117 Intangible assets 260 (27) — — (569) (336) Others (96) 44 4 — (36) (84) Net deferred tax (liabilities)/assets (447) 10,317 582 (1) (1,786) 8,665 Balance as Recognized in Recognized in Balance as of consolidated other Transferred of January 1, statement of comprehensive from December 31, 2018 income income Others reserve 2018 RMB RMB RMB RMB RMB RMB Receivables and inventories 381 2,176 3 3 — 2,563 Payables 1,925 (117) — — — 1,808 Cash flow hedges 115 (10) 2,029 1 (1,031) 1,104 Property, plant and equipment 4,222 2,650 (130) 19 — 6,761 Tax losses carried forward 2,325 1,414 6 (36) — 3,709 Available-for-sale financial assets 117 — — (117) — — Financial assets at fair value through other comprehensive income — — (1) 117 — 116 Intangible assets (336) 273 — 2 — (61) Others (84) (142) (2) (26) — (254) Net deferred tax assets/(liabilities) 8,665 6,244 1,905 (37) (1,031) 15,746 |
LEASE PREPAYMENTS (Tables)
LEASE PREPAYMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LEASE PREPAYMENTS [abstract] | |
Schedule of lease prepayments | 2017 2018 RMB RMB Cost: Balance as of January 1 68,467 75,728 Additions 2,614 249 Transferred from construction in progress 4,151 7,829 Transferred from other long-term assets 3,987 1,402 Reclassification to other assets (2,603) (544) Disposals (531) (152) Exchange adjustments (357) 219 Balance as of December 31 75,728 84,731 Accumulated amortization: Balance as of January 1 14,226 17,202 Amortization charge for the year 2,076 2,519 Transferred from other long-term assets 2,027 617 Reclassification to other assets (770) (154) Disposals (266) (31) Exchange adjustments (91) 64 Balance as of December 31 17,202 20,217 Net book value: 58,526 64,514 |
LONG-TERM PREPAYMENTS AND OTH_2
LONG-TERM PREPAYMENTS AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
LONG-TERM PREPAYMENTS AND OTHER ASSETS [abstract] | |
Schedule of long-term prepayments and other assets | December 31, 2017 2018 RMB RMB Operating rights of service stations 34,268 34,934 Long-term receivables from and prepayment to Sinopec Group Company and fellow subsidiaries 20,726 26,513 Prepayments for construction projects to third parties 4,999 5,502 Others (i) 21,989 24,459 Balance as of December 31 81,982 91,408 Note: (i) Others mainly comprise prepaid operating lease charges and catalyst expenditures. |
Schedule of operating rights of service stations | 2017 2018 RMB RMB Operating rights of service stations Cost: Balance as of January 1 36,908 48,613 Additions 11,837 3,948 Decreases (132) (345) Balance as of December 31 48,613 52,216 Accumulated amortization: Balance as of January 1 10,012 14,345 Additions 4,361 3,019 Decreases (28) (82) Balance as of December 31 14,345 17,282 Net book value as of December 31 34,268 34,934 |
SHORT-TERM AND LONG-TERM DEBT_2
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES [abstract] | |
Schedule of short-term debts | December 31, 2017 2018 RMB RMB Third parties’ debts Short-term bank loans 31,105 17,088 RMB denominated 23,685 13,201 US Dollar denominated 7,420 3,887 Short-term other loans 299 300 RMB denominated 299 300 Current portion of long-term bank loans 1,402 12,074 RMB denominated 1,379 12,039 US Dollar denominated 23 35 Current portion of long-term corporate bonds 22,532 — RMB denominated 16,000 — US Dollar denominated 6,532 — 23,934 12,074 55,338 29,462 Loans from Sinopec Group Company and fellow subsidiaries Short-term loans 23,297 27,304 RMB denominated 1,706 3,061 US Dollar denominated 19,668 22,780 Hong Kong Dollar denominated 1,903 1,441 Euro denominated — 22 Singapore Dollar denominated 20 — Current portion of long-term loans 2,014 4,361 RMB denominated 2,014 4,361 25,311 31,665 80,649 61,127 |
Schedule of long-term debts | December 31, Interest rate and final maturity 2017 2018 RMB RMB Third parties’ debts Long-term bank loans RMB denominated Interest rates ranging from 1.08% to 4.66% per annum as of December 31, 2018 with maturities through 2033 25,644 31,025 US Dollar denominated Interest rates ranging from 1.55% to 4.29% per annum as of December 31, 2018 with maturities through 2031 192 109 25,836 31,134 Corporate bonds(i) RMB denominated Fixed interest rates ranging from 3.70% to 4.90% per annum as of December 31, 2018 with maturities through 2022 36,000 20,000 US Dollar denominated Fixed interest rates ranging from 3.13% to 4.25% per annum as of December 31, 2018 with maturities through 2043 17,902 11,951 53,902 31,951 Total third parties’ long-term debts 79,738 63,085 Less: Current portion (23,934) (12,074) 55,804 51,011 Long-term loans from Sinopec Group Company and fellow subsidiaries RMB denominated Interest rates ranging from interest free to 4.99% per annum as of December 31, 2018 with maturities through 2030 45,334 46,877 Less: Current portion (2,014) (4,361) 43,320 42,516 99,124 93,527 Note: (i) These corporate bonds are carried at amortized cost. As of December 31, 2018, RMB 11,951 (US Dollar denominated corporate bonds) are guaranteed by Sinopec Group Company. |
TRADE ACCOUNTS AND BILLS PAYA_2
TRADE ACCOUNTS AND BILLS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
TRADE ACCOUNTS AND BILLS PAYABLE [abstract] | |
Schedule of trade accounts and bills payable | December 31, 2017 2018 RMB RMB Amounts due to third parties 177,224 170,818 Amounts due to Sinopec Group Company and fellow subsidiaries 13,350 9,142 Amounts due to associates and joint ventures 9,499 6,381 200,073 186,341 Bills payable 6,462 6,416 Trade accounts and bills payable measured at amortized cost 206,535 192,757 |
OTHER PAYABLES (Tables)
OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER PAYABLES | |
Schedule of other payables | December 31, 2017 2018 RMB RMB Salaries and welfare payable 7,162 7,312 Interest payable 723 634 Payables for constructions 60,010 54,992 Other payables 29,028 22,852 Financial liabilities carried at amortized costs 96,923 85,790 Taxes other than income tax 58,925 80,361 Receipts in advance (Note 1(a)) 120,734 — 276,582 166,151 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PROVISIONS [abstract] | |
Schedule of provisions | 2016 2017 2018 RMB RMB RMB Balance as of January 1 33,115 36,918 39,407 Provision for the year 3,420 1,627 1,567 Accretion expenses 1,057 1,501 1,438 Utilized for the year (843) (467) (598) Exchange adjustments 169 (172) 193 Balance as of December 31 36,918 39,407 42,007 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SHARE CAPITAL [abstract] | |
Schedule of share capital | December 31, 2017 2018 RMB RMB Registered, issued and fully paid 95,557,771,046 listed A shares (2017: 95,557,771,046) of RMB 1.00 each 95,558 95,558 25,513,438,600 listed H shares (2017: 25,513,438,600) of RMB 1.00 each 25,513 25,513 121,071 121,071 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
COMMITMENTS AND CONTINGENT LIABILITIES [abstract] | |
Schedule of operating lease commitments | December 31, 2017 2018 RMB RMB Within one year 11,114 15,625 Between one and two years 11,492 14,668 Between two and three years 10,730 13,986 Between three and four years 10,552 13,734 Between four and five years 10,428 13,494 Thereafter 202,806 281,287 257,122 352,794 |
Schedule of capital commitments | December 31, 2017 2018 RMB RMB Authorized and contracted for (i) 120,386 141,045 Authorized but not contracted for 57,997 54,392 178,383 195,437 Note: (i) The investment commitments for the year ended December 31, 2017 and 2018 of the Group were RMB 3,364 and RMB 5,553 respectively. |
Schedule of estimated future annual payments of exploration and production licenses | December 31, 2017 2018 RMB RMB Within one year 205 380 Between one and two years 83 79 Between two and three years 32 33 Between three and four years 28 28 Between four and five years 28 28 Thereafter 882 852 1,258 1,400 |
Schedule of contingent liabilities | December 31, 2017 2018 RMB RMB Joint ventures 940 5,033 Associates (ii) 13,520 12,168 Others 9,732 7,197 24,192 24,398 Note: (ii) The Group provided a guarantee in respect to standby credit facilities granted to Zhongtian Synergetic Energy by banks amount to RMB 17,050. As of December 31, 201 7 and 2018 , the amount withdrawn by Zhongtian Synergetic Energy and guaranteed by the Group was RMB 13,520, RMB 12,168. |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
BUSINESS COMBINATION [abstract] | |
Schedule of details of the purchase consideration, the net assets acquired and goodwill | RMB Purchase consideration Acquisition date(October 26, 2017) -Cash consideration for the purchase of 50% equity interest acquired 10,135 -Acquisition-date fair value of the 50% equity interest held before the acquisition 10,135 Total purchase consideration 20,270 Fair value RMB Cash and cash equivalents 5,653 Trade accounts receivable, net 538 Bills receivable 641 Inventories 1,702 Prepaid expenses and other current assets 2,130 Total current assets 10,664 Property, plant and equipment, net 9,587 Construction in progress 231 Deferred tax assets 11 Lease prepayments 1,920 Long-term prepayments and other assets 1,134 Total non-current assets 12,883 Total assets 23,547 Trade accounts payables (2,092) Accrued expenses and other payables (1,517) Income tax payable (423) Total current liabilities (4,032) Deferred tax liabilities (Note 23) (1,786) Net assets acquired 17,729 Goodwill (Note 20) 2,541 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RELATED PARTY TRANSACTIONS [abstract] | |
Schedule of related party transactions | Years ended December 31, Note 2016 2017 2018 RMB RMB RMB Sales of goods (i) 194,179 244,211 272,789 Purchases (ii) 118,242 165,993 192,224 Transportation and storage (iii) 1,333 7,716 7,319 Exploration and development services (iv) 27,201 21,210 23,489 Production related services (v) 10,816 20,824 28,472 Ancillary and social services (vi) 6,584 6,653 6,664 Operating lease charges for land (vii) 10,474 8,015 7,765 Operating lease charges for buildings (vii) 449 510 521 Other operating lease charges (vii) 456 626 869 Agency commission income (viii) 129 127 113 Interest income (ix) 209 807 848 Interest expense (x) 996 554 1,110 Net deposits (placed with)/withdrawn from related parties (ix) (21,770) (7,441) 6,457 Net funds (repaid to)/obtained from related parties (xi) (19,318) 19,661 31,684 Notes: (i) Sales of goods represent the sale of crude oil, intermediate petrochemical products, petroleum products and ancillary materials. (ii) Purchases represent the purchase of materials and utility supplies directly related to the Group’s operations such as the procurement of raw and ancillary materials and related services, supply of water, electricity and gas. (iii) Transportation and storage represent the cost for the use of railway, road and marine transportation services, pipelines, loading, unloading and storage facilities. (iv) Exploration and development services comprise direct costs incurred in the exploration and development such as geophysical, drilling, well testing and well measurement services. (v) Production related services represent ancillary services rendered in relation to the Group’s operations such as equipment repair and general maintenance, insurance premium, technical research, communications, firefighting, security, product quality testing and analysis, information technology, design and engineering, construction of oilfield ground facilities, refineries and chemical plants, manufacture of replacement parts and machinery, installation, project management and environmental protection. (vi) Ancillary and social services represent expenditures for social welfare and support services such as educational facilities, media communication services, sanitation, accommodation, canteens, property maintenance. (vii) Operating lease charges represent the rental paid to Sinopec Group Company for operating leases in respect of land, buildings and equipment. (viii) Agency commission income represents commission earned for acting as an agent in respect of sales of products and purchase of materials for certain entities owned by Sinopec Group Company. (ix) Interest income represents interest received from deposits placed with Sinopec Finance Company Limited and Sinopec Century Bright Capital Investment Limited, finance companies controlled by Sinopec Group Company. The applicable interest rate is determined in accordance with the prevailing saving deposit rate. The balance of deposits as of December 31, 2017 and 2018 were RMB 47 ,514 and RMB 41,057 , respectively. (x) Interest expense represents interest charges on the loans and advances obtained from Sinopec Group Company and fellow subsidiaries. (xi) The Group obtained or repaid loans from or to Sinopec Group Company and fellow subsidiaries. |
Schedule of amount due from/to related parties | December 31, 2017 2018 RMB RMB Trade accounts receivable and bills receivable 13,174 7,555 Prepaid expenses and other current assets 5,633 7,665 Long-term prepayments and other assets 20,726 23,482 Total 39,533 38,702 Trade accounts payable and bills payable 24,104 17,530 Contract liabilities — 3,273 Other payables 20,990 18,160 Other long-term liabilities 10,165 12,470 Short-term loans and current portion of long-term loans from Sinopec Group Company and fellow subsidiaries 25,311 31,665 Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries 43,320 42,516 Total 123,890 125,614 |
Schedule of key management personnel emoluments | Years ended December 31, 2016 2017 2018 RMB’000 RMB’000 RMB’000 Short-term employee benefits 5,648 5,344 5,745 Retirement scheme contributions 499 424 351 6,147 5,768 6,096 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEGMENT REPORTING [abstract] | |
Schedule of operating segments | Years ended December 31, 2016 2017 2018 RMB RMB RMB Sales of goods Exploration and production External sales 47,443 69,168 93,499 Inter-segment sales 58,954 77,804 95,954 106,397 146,972 189,453 Refining External sales 102,983 132,478 148,930 Inter-segment sales 747,317 874,271 1,109,088 850,300 1,006,749 1,258,018 Marketing and distribution External sales 1,027,373 1,191,902 1,408,989 Inter-segment sales 3,480 3,962 5,224 1,030,853 1,195,864 1,414,213 Chemicals External sales 284,289 373,814 457,406 Inter-segment sales 38,614 49,615 73,835 322,903 423,429 531,241 Corporate and others External sales 418,102 533,108 716,789 Inter-segment sales 320,367 440,303 650,271 738,469 973,411 1,367,060 Elimination of inter-segment sales (1,168,732) (1,445,955) (1,934,372) Sales of goods 1,880,190 2,300,470 2,825,613 Other operating revenues Exploration and production 9,542 10,533 10,738 Refining 5,486 5,104 5,389 Marketing and distribution 22,004 28,333 32,424 Chemicals 12,211 14,314 15,492 Corporate and others 1,478 1,439 1,523 Other operating revenues 50,721 59,723 65,566 Sales of goods and other operating revenues 1,930,911 2,360,193 2,891,179 Years ended December 31, 2016 2017 2018 RMB RMB RMB Result Operating (loss)/income By segment - Exploration and production (36,641) (45,944) (10,107) - Refining 56,265 65,007 54,827 - Marketing and distribution 32,153 31,569 23,464 - Chemicals 20,623 26,977 27,007 - Corporate and others 3,212 (4,484) (9,293) - Elimination 1,581 (1,655) (3,634) Total segment operating income 77,193 71,470 82,264 Share of (losses)/profits from associates and joint ventures - Exploration and production (1,203) 1,449 2,598 - Refining 1,075 989 109 - Marketing and distribution 2,362 2,945 3,155 - Chemicals 5,696 9,621 6,298 - Corporate and others 1,376 1,521 1,814 Aggregate share of profits from associates and joint ventures 9,306 16,525 13,974 Investment income/(losses) - Exploration and production 24 40 (3) - Refining (4) 28 315 - Marketing and distribution 90 90 43 - Chemicals 119 86 596 - Corporate and others 34 18 920 Aggregate investment income 263 262 1,871 Net finance costs (6,611) (1,560) 1,001 Earnings before income tax 80,151 86,697 99,110 December 31, 2016 2017 2018 RMB RMB RMB Assets Segment assets - Exploration and production 402,476 343,404 321,686 - Refining 260,903 273,123 271,356 - Marketing and distribution 292,328 309,727 317,641 - Chemicals 144,371 158,472 156,865 - Corporate and others 95,263 170,045 152,799 Total segment assets 1,195,341 1,254,771 1,220,347 Interest in associates and joint ventures 116,812 131,087 145,721 Available-for-sale financial assets 11,408 1,676 — Financial assets at fair value through other comprehensive income — — 1,450 Deferred tax assets 7,214 15,131 21,694 Cash and cash equivalents, time deposits with financial institutions 142,497 165,004 167,015 Other unallocated assets 25,337 27,835 36,081 Total assets 1,498,609 1,595,504 1,592,308 Liabilities Segment liabilities - Exploration and production 95,944 99,568 94,170 - Refining 82,170 101,429 103,809 - Marketing and distribution 133,303 164,101 159,536 - Chemicals 32,072 35,293 37,413 - Corporate and others 97,080 117,781 144,216 Total segment liabilities 440,569 518,172 539,144 Short-term debts 56,239 55,338 29,462 Income tax payable 6,051 13,015 6,699 Long-term debts 72,674 55,804 51,011 Loans from Sinopec Group Company and fellow subsidiaries 63,352 68,631 74,181 Deferred tax liabilities 7,661 6,466 5,948 Other unallocated liabilities 20,828 25,188 29,328 Total liabilities 667,374 742,614 735,773 |
Schedule of capital expenditure of operating segments | Years ended December 31, 2016 2017 2018 RMB RMB RMB Capital expenditure Exploration and production 32,187 31,344 42,155 Refining 14,347 21,075 27,908 Marketing and distribution 18,493 21,539 21,429 Chemicals 8,849 23,028 19,578 Corporate and others 2,580 2,398 6,906 76,456 99,384 117,976 Depreciation, depletion and amortization Exploration and production 61,929 66,843 60,331 Refining 17,209 18,408 18,164 Marketing and distribution 14,540 15,463 16,296 Chemicals 12,654 12,873 13,379 Corporate and others 2,093 1,723 1,797 108,425 115,310 109,967 Impairment losses on long-lived assets Exploration and production 11,605 13,556 4,274 Refining 1,655 1,894 353 Marketing and distribution 267 675 264 Chemicals 2,898 4,922 1,374 Corporate and others — 211 16 16,425 21,258 6,281 |
Schedule of geographical information of operating segments | Years ended December 31, 2016 2017 2018 RMB RMB RMB External sales Mainland China 1,488,117 1,758,365 2,119,580 Singapore 152,068 269,349 395,129 Others 290,726 332,479 376,470 1,930,911 2,360,193 2,891,179 December 31, 2016 2017 2018 RMB RMB RMB Non-current assets Mainland China 1,000,209 979,329 989,668 Others 45,887 48,572 50,892 1,046,096 1,027,901 1,040,560 |
PRINCIPAL SUBSIDIARIES (Tables)
PRINCIPAL SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
PRINCIPAL SUBSIDIARIES [abstract] | |
Schedule of principal subsidiaries | Interests held Particulars Interests by non- of issued held by the controlling Name of Company capital Company % interests % Principal activities Sinopec International Petroleum Exploration and Production Limited ("SIPL") RMB 8,000 100.00 — Investment in exploration, production and sale of petroleum and natural gas Sinopec Great Wall Energy & Chemical Company Limited RMB 22,761 100.00 — Coal chemical industry investment management, production and sale of coal chemical products Sinopec Yangzi Petrochemical Company Limited RMB 15,651 100.00 — Manufacturing of intermediate petrochemical products and petroleum products Sinopec Pipeline Storage & Transportation Company Limited RMB 12,000 100.00 — Pipeline storage and transportation of crude oil Sinopec Yizheng Chemical Fibre Limited Liability Company RMB 4,000 100.00 — Production and sale of polyester chips and polyester fibres Sinopec Lubricant Company Limited RMB 3,374 100.00 — Production and sale of refined petroleum products, lubricant base oil, and petrochemical materials Sinopec Qingdao Petrochemical Company Limited RMB 1,595 100.00 — Manufacturing of intermediate petrochemical products and petroleum products Sinopec Chemical Sales Company Limited RMB 1,000 100.00 — Marketing and distribution of petrochemical products China International United Petroleum and Chemical Company Limited RMB 3,000 100.00 — Trading of crude oil and petrochemical products Sinopec Overseas Investment Holding Limited ("SOIH") US Dollar 1,662 100.00 — Investment holding of overseas business Sinopec Catalyst Company Limited RMB 1,500 100.00 — Production and sale of catalyst products China Petrochemical International Company Limited RMB 1,400 100.00 — Trading of petrochemical products Sinopec Beihai Refining and Chemical Limited Liability Company RMB 5,294 98.98 1.02 Import and processing of crude oil, production, storage and sale of petroleum products and petrochemical products Sinopec Qingdao Refining and Chemical Company Limited RMB 5,000 85.00 15.00 Manufacturing of intermediate petrochemical products and petroleum products Sinopec Hainan Refining and Chemical Company Limited RMB 3,986 75.00 25.00 Manufacturing of intermediate petrochemical products and petroleum products Sinopec Marketing Co. Limited ("Marketing Company") RMB 28,403 70.42 29.58 Marketing and distribution of refined petroleum products Shanghai SECCO Petrochemical Company Limited ("Shanghai SECCO") (Note 33) RMB 7,801 67.60 32.40 Production and sale of petrochemical products Sinopec—SK(Wuhan) Petrochemical Company Limited ("Zhonghan Wuhan") RMB 6,270 65.00 35.00 Production, sale, research and development of ethylene and downstream byproducts Sinopec Kantons Holdings Limited ("Sinopec Kantons") HKD 248 60.33 39.67 Provision of crude oil jetty services and natural gas pipeline transmission services Gaoqiao Petrochemical Company Limited (Note 33) RMB 10,000 55.00 45.00 Manufacturing of intermediate petrochemical products and petroleum products Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical") RMB 10,824 50.44 49.56 Manufacturing of synthetic fibres, resin and plastics, intermediate petrochemical products and petroleum products Fujian Petrochemical Company Limited ("Fujian Petrochemical") (i) RMB 8,140 50.00 50.00 Manufacturing of plastics, intermediate petrochemical products and petroleum products Note: (i) The Group consolidated the financial statements of the entity because it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. |
Schedule of summarized consolidated balance sheet | Shanghai Shanghai Marketing Company SIPL Petrochemical Fujian Petrochemical Sinopec Kantons SECCO Zhonghan Wuhan December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets 156,494 130,861 19,555 16,731 19,866 25,299 992 816 1,196 1,209 11,602 9,537 1,636 2,750 Current liabilities (212,620) (181,766) (7,118) (483) (10,922) (13,913) (376) (50) (2,351) (3,722) (4,174) (2,233) (3,975) (2,333) Net current (liabilities)/assets (56,126) (50,905) 12,437 16,248 8,944 11,386 616 766 (1,155) (2,513) 7,428 7,304 (2,339) 417 Non-current assets 253,455 261,062 34,769 38,020 19,577 19,087 9,925 11,444 13,089 12,895 12,797 12,301 13,598 12,612 Non-current liabilities (1,774) (2,086) (28,523) (31,050) (6) (10) (681) (688) (2,430) (132) (1,740) (1,698) — — Net non-current assets 251,681 258,976 6,246 6,970 19,571 19,077 9,244 10,756 10,659 12,763 11,057 10,603 13,598 12,612 Net assets 195,555 208,071 18,683 23,218 28,515 30,463 9,860 11,522 9,504 10,250 18,485 17,907 11,259 13,029 Attributable to owners of the Company 132,549 141,244 3,468 5,266 14,253 15,295 4,930 5,761 5,716 6,165 12,496 12,105 7,318 8,469 Attributable to non-controlling interests 63,006 66,827 15,215 17,952 14,262 15,168 4,930 5,761 3,788 4,085 5,989 5,802 3,941 4,560 |
Schedule of summarized consolidated statement of comprehensive income | Shanghai Marketing Company SIPL Shanghai Petrochemical Fujian Petrochemical Sinopec Kantons SECCO (ii) Zhonghan Wuhan Year ended December 31, 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2017 2018 2016 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 1,050,294 1,221,530 1,443,698 4,016 6,136 5,037 77,843 91,962 107,689 4,968 6,068 5,261 1,512 1,498 1,398 5,222 26,320 11,703 16,139 17,134 Net income/ (loss) for the year 26,461 27,520 22,046 (4,604) 1,075 3,272 5,981 6,154 5,336 2,513 2,726 1,576 860 1,046 1,065 726 3,099 1,558 2,730 1,879 Total Comprehensive income/ (loss) 27,385 26,986 22,589 (2,481) 396 4,536 6,000 6,153 5,336 2,513 2,726 1,576 879 1,146 1,067 726 3,099 1,558 2,730 1,879 Comprehensive income/(loss) attributable to non-controlling interests 9,028 9,033 7,794 (3,279) (38) 2,737 2,964 3,052 2,645 1,256 1,363 788 349 433 399 235 1,004 545 956 658 Dividends paid to non-controlling interests 4,932 9,544 3,964 — — — 563 1,344 1,616 — 625 600 51 70 104 — 1,191 — — — |
Schedule of summarized statement of cash flows | Shanghai Marketing Company SIPL Shanghai Petrochemical Fujian Petrochemical Sinopec Kantons SECCO (ii) Zhonghan Wuhan Year ended December 31, 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2017 2018 2016 2017 2018 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Net cash generated from/(used in) operating activities 50,840 51,038 24,825 2,576 2,758 3,467 7,182 7,061 6,659 617 (558) 38 505 968 738 1,639 3,766 3,636 2,976 3,308 Net cash (used in)/generated from investing activities (31,573) (35,738) 8,339 2,729 (2,211) 4,096 (190) (2,401) (1,928) 54 225 (215) 261 193 648 5,567 (480) (3,080) (2,415) (3,099) Net cash (used in)/generated from financing activities (20,424) (16,499) (32,084) (4,414) 243 (5,419) (2,637) (2,590) (3,507) (55) (158) 43 (1,338) (1,093) (1,551) — (3,676) (682) (631) 525 Net (decrease)/increase in cash and cash equivalents (1,157) (1,199) 1,080 891 790 2,144 4,355 2,070 1,224 616 (491) (134) (572) 68 (165) 7,206 (390) (126) (70) 734 Cash and cash equivalents as of January 1 14,914 14,373 12,921 2,042 3,045 3,605 1,077 5,441 7,504 101 717 226 886 289 343 — 7,205 260 134 64 Effect of foreign currency exchange rate changes 616 (253) 141 112 (230) 244 9 (7) 14 — — — (25) (14) 20 (1) 2 — — — Cash and cash equivalents as of December 31 14,373 12,921 14,142 3,045 3,605 5,993 5,441 7,504 8,742 717 226 92 289 343 198 7,205 6,817 134 64 798 (ii) The summarized consolidated statement of comprehensive income and the summarized statement of cash flow of Shanghai SECCO present the results from the acquisition date to December 31, 2017. |
FINANCIAL RISK MANAGEMENT AND_2
FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Table) | 12 Months Ended |
Dec. 31, 2018 | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES [abstract] | |
Schedule of liquidity risk | December 31, 2017 Total More than More than contractual Within 1 1 year but 2 year but Carrying undiscounted year or on less than 2 less than 5 More than amount cash flow demand years years 5 years RMB RMB RMB RMB RMB RMB Short-term debts 55,338 56,562 56,562 — — — Long-term debts 55,804 66,202 2,166 14,477 32,316 17,243 Loans from Sinopec Group Company and fellow subsidiaries 68,631 68,950 25,504 4,439 39,007 — Derivatives financial liabilities 2,665 2,665 2,665 — — — Trade accounts payable and bills payable 206,535 206,535 206,535 — — — Other payables 96,923 96,923 96,923 — — — 485,896 497,837 390,355 18,916 71,323 17,243 December 31, 2018 Total More than More than contractual Within 1 1 year but 2 year but Carrying undiscounted year or on less than 2 less than 5 More than amount cash flow demand years years 5 years RMB RMB RMB RMB RMB RMB Short-term debts 29,462 30,123 30,123 — — — Long-term debts 51,011 61,809 1,889 16,938 27,190 15,792 Loans from Sinopec Group Company and fellow subsidiaries 74,181 75,207 32,127 37,977 3,741 1,362 Derivatives financial liabilities 13,571 13,571 13,571 — — — Trade accounts payable and bills payable 192,757 192,757 192,757 — — — Other payables 85,790 85,790 85,790 — — — 446,772 459,257 356,257 54,915 30,931 17,154 |
Schedule of currency risk | December 31, 2017 2018 Gross exposure arising from loans US Dollars 204 668 |
Schedule of analysis of currency risk | December 31, 2017 2018 US Dollars 50 172 |
Schedule of fair values of financial instruments | December 31, 2017 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Financial assets at fair value through profit and loss: - Structured deposit — — 51,196 51,196 Available-for-sale financial assets: - Listed 178 — — 178 Derivative financial instruments: - Derivative financial assets 343 183 — 526 521 183 51,196 51,900 Liabilities Derivative financial instruments: - Derivative financial liabilities 1,277 1,388 — 2,665 1,277 1,388 — 2,665 December 31, 2018 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Financial assets at fair value through profit and loss: - Structured deposit — — 25,550 25,550 - Equity investments, listed and at quoted market price 182 — — 182 Derivative financial instruments: - Derivative financial assets 874 7,013 — 7,887 Financial assets at fair value through other compre-hensive income: - Equity investments 127 — 1,323 1,450 1,183 7,013 26,873 35,069 Liabilities Derivative financial instruments: - Derivative financial liabilities 5,500 8,071 — 13,571 5,500 8,071 — 13,571 December 31, 2017 2018 RMB RMB Carrying amount 79,738 63,085 Fair value 78,040 62,656 |
RESERVES (Tables)
RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
RESERVES [abstract] | |
Schedule of reserves | 41. RESERVES 2017 2018 RMB RMB Capital reserve (Note (a)) Balance as of January 1 26,290 26,326 Transaction with non-controlling interests (13) (12) Others 49 (261) Balance as of December 31 26,326 26,053 Share premium (Note (b)) Balance as of January 1 55,850 55,850 Balance as of December 31 55,850 55,850 Statutory surplus reserve (Note (c)) Balance as of January 1 79,640 82,682 Appropriation 3,042 3,996 Balance as of December 31 82,682 86,678 Discretionary surplus reserve Balance as of January 1 117,000 117,000 Balance as of December 31 117,000 117,000 Other reserves Change in accounting policy — (12) Balance as of January 1 424 (2,946) Other comprehensive income (3,481) (7,618) Amounts transferred to cash flow hedge reserves initially recognized by hedged items — 5,269 Others 123 818 Balance as of December 31 (2,934) (4,477) Retained earnings (Note (d)) Change in accounting policy — 12 Balance as of January 1 310,719 326,137 Net income attributable to owners of the Company 51,244 61,618 Final dividend inspect of the previous year, approved and paid during the year (Note (e)) (20,582) (48,428) Interim dividend (Note (f)) (12,107) (19,371) Appropriation (3,042) (3,996) Others (107) (851) Balance as of December 31 326,125 315,109 605,049 596,213 Note: (a) The capital reserve represents (i) the difference between the total amount of the par value of shares issued and the amount of the net assets transferred from Sinopec Group Company in connection with the Reorganization (Note 1), and (ii) the difference between the considerations paid over or received the amount of the net assets of entities and related operations acquired from or sold to Sinopec Group Company and non-controlling interests. (b) The application of the share premium account is governed by Sections 167 and 168 of the PRC Company Law. (c) According to the PRC Company Law and the Article of Association of the Company, the Company is required to transfer 10% of its net income determined in accordance with the accounting policies complying with Accounting Standards for Business Enterprises (“ASBE”), adopted by the Group to statutory surplus reserve. In the event that the reserve balance reaches 50% of the registered capital, no transfer is required. The transfer to this reserve must be made before distribution of a dividend to shareholders. Statutory surplus reserve can be used to make good previous years’ losses, if any, and may be converted into share capital by issuing of new shares to shareholders in proportion to their existing shareholdings or by increasing the par value of the shares currently held by them, provided that the balance after such issue is not less than 25% of the registered capital. During the years ended December 31, 2016, 2017 and 2018, the Company transferred RMB nil, RMB 3,042 and RMB 3,996 respectively, being 10% of the net income determined in accordance with the accounting policies complying with ASBE, to this reserve. (d) As of December 31, 2017 and 2018, the amount of retained earnings available for distribution was RMB 177,049 and RMB 143,148, respectively, being the amount determined in accordance with ASBE. According to the Articles of Association of the Company, the amount of retained earnings available for distribution to owners of the Company is the lower of the amount determined in accordance with the accounting policies complying with ASBE and the amount determined in accordance with the accounting policies complying with IFRS. Pursuant to a resolution passed at the director’s meeting on March 22, 2019, final dividends in respect of the year ended December 31, 2018 of RMB 0.26 per share totaling RMB 31,479 were proposed for shareholders’ approval at the Annual General Meeting. Final cash dividend for the year ended December 31, 2018 proposed after the balance sheet date has not been recognized as a liability at the balance sheet date. (e) Pursuant to the shareholders’ approval at the Annual General Meeting on June 28, 2017, a final dividend of RMB 0.17 per share totaling RMB 20,582 according to total shares as of July 18, 2017 was approved. All dividends have been paid in the year ended December 31, 2017. Pursuant to the shareholders’ approval at the Annual General Meeting on May 15, 2018, a final dividend of RMB 0.40 per share totaling RMB 48,428 according to total shares as of June 4, 2018 was approved. All dividends have been paid in the year ended December 31, 2018. (f) Pursuant to the Company’s Articles of Association and a resolution passed at the Directors’ meeting on August 25, 2017, the directors authorized to declare the interim dividend for the year ended December 31, 2017 of RMB 0.10 per share totaling RMB 12,107. Dividends were paid on September 20, 2017. Pursuant to the Company’s Articles of Association and a resolution passed at the Directors’ meeting on August 24, 2018, the directors authorized to declare the interim dividend for the year ended December 31, 2018 of RMB 0.16 per share totaling RMB 19,371. Dividends were paid on September 12, 2018. |
PRINCIPAL ACTIVITIES, ORGANIZ_3
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION (Details) - ¥ / shares shares in Billions | Jul. 25, 2000 | Feb. 25, 2000 |
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION [abstract] | ||
Number of shares issued | 68.8 | |
Par value per share | ¥ 1 | ¥ 1 |
PRINCIPAL ACTIVITIES, ORGANIZ_4
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION - NEW AND AMENDED STANDARDS AND INTERPRETATIONS ADOPTED BY THE GROUP (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Non-current assets | |||||
Financial assets at fair value through other comprehensive income | ¥ 1,450 | ¥ 1,676 | |||
Available-for-sale financial assets | ¥ 1,676 | ¥ 11,408 | |||
Total non-current assets | 1,088,188 | 1,066,455 | 1,066,455 | ||
Current assets | |||||
Total current assets | 504,120 | 529,049 | 529,049 | ||
Current liabilities | |||||
Contract liabilities(i) | 120,734 | ||||
Other payables(i) | 155,848 | 276,582 | |||
Total current liabilities | 565,098 | 579,446 | 579,446 | ||
Non-current liabilities | |||||
Total non-current liabilities | 170,675 | 163,168 | 163,168 | ||
Total equity | 856,535 | 852,890 | 852,890 | 831,235 | ¥ 788,161 |
Equity | |||||
Other reserves | (2,946) | (2,934) | |||
Retained earnings | 326,137 | 326,125 | |||
Total equity | ¥ 856,535 | 852,890 | ¥ 852,890 | ¥ 831,235 | ¥ 788,161 |
Adjustment from Adoption of IFRS 9 | |||||
Non-current assets | |||||
Financial assets at fair value through other comprehensive income | 1,676 | ||||
Available-for-sale financial assets | (1,676) | ||||
Equity | |||||
Other reserves | (12) | ||||
Retained earnings | 12 | ||||
Adjustment from Adoption of IFRS 15 | |||||
Current liabilities | |||||
Contract liabilities(i) | 120,734 | ||||
Other payables(i) | ¥ (120,734) |
PRINCIPAL ACTIVITIES, ORGANIZ_5
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION - NEW AND AMENDED STANDARDS AND INTERPRETATIONS NOT YET ADOPTED BY THE GROUP (Details) - IFRS 16 ¥ in Billions | Jan. 01, 2019CNY (¥) |
Disclosure of initial application of standards or interpretations [line items] | |
Right-of-use assets | ¥ 207.5 |
Adjustment | |
Disclosure of initial application of standards or interpretations [line items] | |
Lease liabilities | ¥ 198.6 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - PROPERTY, PLANT AND EQUIPMENT (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated residuals rate | 3.00% |
Equipment, machinery and others [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated residuals rate | 3.00% |
Minimum | Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated usage period | 12 years |
Minimum | Equipment, machinery and others [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated usage period | 4 years |
Maximum | Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated usage period | 50 years |
Maximum | Equipment, machinery and others [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated usage period | 30 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - FINANCIAL ASSETS (Details) | 12 Months Ended |
Dec. 31, 2018 | |
SIGNIFICANT ACCOUNTING POLICIES [abstract] | |
Credit losses period measured | 12 months |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - RESEARCH AND DEVELOPMENT EXPENSE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SIGNIFICANT ACCOUNTING POLICIES [abstract] | |||
Research and development expense | ¥ 7,956 | ¥ 6,423 | ¥ 5,941 |
SALES OF GOODS (Details)
SALES OF GOODS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales of goods | |||
Sales of goods | ¥ 2,825,613 | ¥ 2,300,470 | ¥ 1,880,190 |
Crude Oil | |||
Sales of goods | |||
Sales of goods | 519,910 | 421,585 | 336,732 |
Gasoline | |||
Sales of goods | |||
Sales of goods | 711,236 | 600,113 | 508,912 |
Diesel | |||
Sales of goods | |||
Sales of goods | 594,008 | 503,406 | 447,126 |
Basic chemical feedstock [Member] | |||
Sales of goods | |||
Sales of goods | 250,884 | 205,722 | 154,992 |
Kerosene [Member] | |||
Sales of goods | |||
Sales of goods | 168,823 | 115,739 | 88,195 |
Synthetic resin [Member] | |||
Sales of goods | |||
Sales of goods | 124,618 | 107,633 | 91,518 |
Natural Gas [Member] | |||
Sales of goods | |||
Sales of goods | 43,205 | 34,277 | 39,464 |
Synthetic fiber monomers and polymers [Member] | |||
Sales of goods | |||
Sales of goods | 77,572 | 61,998 | 38,054 |
Others [Member] | |||
Sales of goods | |||
Sales of goods | ¥ 335,357 | ¥ 249,997 | ¥ 175,197 |
OTHER OPERATING REVENUES (Detai
OTHER OPERATING REVENUES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER OPERATING REVENUES [abstract] | |||
Sale of materials and others | ¥ 64,503 | ¥ 58,930 | ¥ 49,812 |
Rental income | 1,063 | 793 | 909 |
Other operating revenues | ¥ 65,566 | ¥ 59,723 | ¥ 50,721 |
SELLING, GENERAL AND ADMINIST_3
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES [abstract] | |||
Operating lease charges | ¥ 12,297 | ¥ 12,104 | ¥ 14,410 |
Auditor's remuneration: | |||
audit services | 94 | 72 | 73 |
others | 9 | 5 | 2 |
Impairment losses | |||
trade accounts receivable | 6 | (51) | 230 |
other receivables | 9 | 159 | (12) |
accounts prepayments | ¥ 29 | ¥ 2 | ¥ 13 |
PERSONNEL EXPENSES (Details)
PERSONNEL EXPENSES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PERSONNEL EXPENSES [abstract] | |||
Salaries, wages and other benefits | ¥ 68,425 | ¥ 65,873 | ¥ 55,502 |
Contributions to retirement schemes (Note 35) | 9,296 | 8,981 | 8,385 |
Personnel expenses | ¥ 77,721 | ¥ 74,854 | ¥ 63,887 |
TAXES OTHER THAN INCOME TAX (De
TAXES OTHER THAN INCOME TAX (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
TAXES OTHER THAN INCOME TAX [abstract] | |||
Consumption tax | ¥ 201,901 | ¥ 192,907 | ¥ 193,836 |
City construction tax | 18,237 | 18,274 | 18,155 |
Education surcharge | 13,187 | 13,811 | 13,695 |
Resources tax | 6,021 | 4,841 | 3,871 |
Other | 7,152 | 5,459 | 2,449 |
Taxes other than income tax | ¥ 246,498 | ¥ 235,292 | ¥ 232,006 |
TAXES OTHER THAN INCOME TAX - C
TAXES OTHER THAN INCOME TAX - CONSUMPTION TAX (Details) | Jan. 13, 2015¥ / T |
Gasoline | |
Disclosure of Petroleum reserves [line items] | |
Tax Rate of Products | 2,109.76 |
Diesel | |
Disclosure of Petroleum reserves [line items] | |
Tax Rate of Products | 1,411.20 |
Naphtha | |
Disclosure of Petroleum reserves [line items] | |
Tax Rate of Products | 2,105.20 |
Solvent oil | |
Disclosure of Petroleum reserves [line items] | |
Tax Rate of Products | 1,948.64 |
Lubricant oil | |
Disclosure of Petroleum reserves [line items] | |
Tax Rate of Products | 1,711.52 |
Fuel oil | |
Disclosure of Petroleum reserves [line items] | |
Tax Rate of Products | 1,218 |
Jet fuel oil | |
Disclosure of Petroleum reserves [line items] | |
Tax Rate of Products | 1,495.20 |
TAXES OTHER THAN INCOME TAX -_2
TAXES OTHER THAN INCOME TAX - CITY CONSTRUCTION TAX (Details) | 4 Months Ended | 8 Months Ended |
Apr. 30, 2016 | Dec. 31, 2016 | |
Disclosure of city construction tax and resources tax [line items] | ||
Applicable tax rate | 6.00% | |
Minimum | ||
Disclosure of city construction tax and resources tax [line items] | ||
Business tax rate | 3.00% | |
Maximum | ||
Disclosure of city construction tax and resources tax [line items] | ||
Business tax rate | 5.00% |
OTHER OPERATING INCOME_(EXPEN_3
OTHER OPERATING INCOME/(EXPENSE), NET (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
OTHER OPERATING INCOME/(EXPENSE), NET [abstract] | |||
Government grant (i) | ¥ 7,539 | ¥ 4,893 | ¥ 4,101 |
Ineffective portion of change in fair value of cash flow hedges | (1,978) | (813) | 304 |
Net realized and unrealized gain/(loss) on derivative financial instruments not qualified as hedging | 191 | (909) | 195 |
Impairment losses on long-lived assets (ii) | (6,281) | (21,258) | (16,425) |
Loss on disposal of property, plant, equipment and other non-currents assets, net | (1,526) | (1,518) | (1,489) |
Fines, penalties and compensations | (276) | (89) | (152) |
Donations | (180) | (152) | (133) |
Gain on remeasurement of interests in the Shanghai SECCO (Note 33) | 3,941 | ||
Gain on dilution and remeasurement of interests in the Pipeline Ltd | 20,562 | ||
Others | (2,849) | (649) | (1,277) |
Other operating expenses, total | ¥ (5,360) | ¥ (16,554) | ¥ 5,686 |
OTHER OPERATING INCOME_(EXPEN_4
OTHER OPERATING INCOME/(EXPENSE), NET - IMPAIRMENT LOSSES ON LONG-LIVED ASSETS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | ¥ 6,281 | ¥ 21,258 | ¥ 16,425 |
Exploration and production | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | ¥ 4,274 | ¥ 13,556 | ¥ 11,605 |
Pre-tax discount rate | 10.47% | 10.47% | 10.47% |
Estimated decrease rate of oil price | 5.00% | ||
Estimated increase rate of operating cost | 5.00% | ||
Estimated increase discount rate | 5.00% | ||
Exploration and production | Property, plant and equipment | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | ¥ 4,274 | ¥ 12,611 | ¥ 10,594 |
Impairment loss due to estimated decrease rate of oil price | 312 | ||
Impairment loss due to estimated increase rate of operating cost | 315 | ||
Impairment loss due to estimated increase discount rate | 5 | ||
Exploration and production | Investment in joint ventures | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 907 | ||
Exploration and production | Construction in progress | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 21 | 1,005 | |
Exploration and production | Goodwill | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 6 | ||
Exploration and production | Available for sale financial assets | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 17 | ||
Chemicals segment | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 1,374 | 4,922 | 2,898 |
Chemicals segment | Entrusted loan | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses on entrusted loan | 97 | ||
Chemicals segment | Property, plant and equipment | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 1,252 | 4,779 | 2,840 |
Chemicals segment | Construction in progress | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 25 | 143 | 58 |
Refining segment | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 353 | 1,894 | 1,655 |
Refining segment | Property, plant and equipment | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 353 | 1,836 | 1,245 |
Refining segment | Investment in associates | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 10 | ||
Refining segment | Construction in progress | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 47 | 410 | |
Refining segment | Intangible assets [member] | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 1 | ||
Marketing and distribution | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 264 | 675 | 267 |
Marketing and distribution | Property, plant and equipment | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 254 | 597 | 242 |
Marketing and distribution | Construction in progress | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 3 | 41 | 13 |
Marketing and distribution | Intangible assets [member] | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 6 | ||
Marketing and distribution | Investment in associates and joint ventures | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 7 | 19 | 1 |
Marketing and distribution | Lease prepayment | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 12 | 11 | |
Corporate and others | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 16 | ¥ 211 | 211 |
Corporate and others | Property, plant and equipment | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | 16 | ¥ 13 | |
Corporate and others | Goodwill | |||
Disclosure of impairment loss recognised or reversed [line items] | |||
Impairment losses recognized on long-lived assets | ¥ 198 |
INTEREST EXPENSE (Details)
INTEREST EXPENSE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest expense [line items] | |||
Interest expense incurred | ¥ 6,376 | ¥ 6,368 | ¥ 9,021 |
Less: Interest expense capitalized | (493) | (723) | (859) |
Interest expense, gross amount | 5,883 | 5,645 | 8,162 |
Accretion expenses (Note 30) | 1,438 | 1,501 | 1,057 |
Interest expense | ¥ 7,321 | ¥ 7,146 | ¥ 9,219 |
Maximum | |||
Interest expense [line items] | |||
Interest rates per annum at which borrowing costs were capitalized for construction in progress | 4.66% | 4.41% | 4.82% |
Minimum | |||
Interest expense [line items] | |||
Interest rates per annum at which borrowing costs were capitalized for construction in progress | 2.37% | 2.37% | 2.65% |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax | |||
Provision for the year | ¥ 27,176 | ¥ 26,668 | ¥ 21,313 |
Adjustment of prior years | (719) | (72) | 228 |
Deferred taxation (Note 23) | (6,244) | (10,317) | (834) |
Income tax expense | ¥ 20,213 | ¥ 16,279 | ¥ 20,707 |
INCOME TAX EXPENSE - RECONCILIA
INCOME TAX EXPENSE - RECONCILIATION BETWEEN ACTUAL INCOME TAX EXPENSE AND THE EXPECTED INCOME TAX EXPENSE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation between actual income tax expense and the expected income tax expense at applicable statutory tax rates | |||
Earnings before income tax | ¥ 99,110 | ¥ 86,697 | ¥ 80,151 |
Expected PRC income tax expense at a statutory tax rate of 25% | 24,778 | 21,674 | 20,038 |
Tax effect of preferential tax rate (Note i) | (1,259) | (793) | 83 |
Effect of income taxes at foreign operations | 77 | (1,394) | 299 |
Tax effect of non-deductible expenses | 2,351 | 1,905 | 1,529 |
Tax effect of non-taxable income | (5,033) | (5,939) | (2,786) |
Tax effect of utilization of previously unrecognized tax losses and temporary differences | (779) | (613) | (453) |
Tax effect of tax losses not recognized | 609 | 1,485 | 958 |
Write-down of deferred tax assets | 188 | 26 | 811 |
Adjustment of prior years | (719) | (72) | 228 |
Income tax expense | ¥ 20,213 | ¥ 16,279 | ¥ 20,707 |
PRC | |||
Reconciliation between actual income tax expense and the expected income tax expense at applicable statutory tax rates | |||
Statutory income tax rate | 25.00% | 25.00% | 25.00% |
Preferential income tax rate applicable to western regions | 15.00% |
OTHER COMPREHENSIVE INCOME (Det
OTHER COMPREHENSIVE INCOME (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow hedges: | |||
Effective portion of changes in fair value of hedging instruments recognized during the year, before tax | ¥ (12,500) | ¥ (1,314) | ¥ (3,813) |
Effective portion of changes in fair value of hedging instruments recognized during the year, tax effect | 2,159 | 240 | 652 |
Effective portion of changes in fair value of hedging instruments recognized during the year, net of tax | (10,341) | (1,074) | (3,161) |
Amounts transferred to initial carrying amount of hedged items, before tax | (4) | 13 | |
Amounts transferred to initial carrying amount of hedged items, tax effect | 1 | (2) | |
Amounts transferred to initial carrying amount of hedged items, net of tax | (3) | 11 | |
Reclassification adjustments for amounts transferred to the consolidated statement of income, cash flow hedge, before tax | 730 | (575) | 6,279 |
Reclassification adjustments for amounts transferred to the consolidated statement of income, cash flow hedge, tax effect | (130) | 72 | (1,115) |
Reclassification adjustments for amounts transferred to the consolidated statement of income, cash flow hedge, net of tax | 600 | (503) | 5,164 |
Cash flow hedges, before tax | (11,770) | (1,893) | 2,479 |
Cash flow hedges, tax effect | 2,029 | 313 | (465) |
Cash flow hedges, net of tax | (9,741) | (1,580) | 2,014 |
Cash flow hedge reserve | (4,932) | (460) | |
Cash flow hedge reserve attributable to owners | (4,917) | (510) | |
Available-for-sale financial assets: | |||
Changes in fair value recognized during the year, before tax | (57) | (17) | |
Changes in fair value recognized during the year, tax | (7) | ||
Changes in fair value recognized during the year, after tax | (57) | (24) | |
Changes in the fair value of instruments at fair value through other comprehensive income, before tax | (41) | ||
Changes in the fair value of instruments at fair value through other comprehensive income, tax effect | (12) | ||
Changes in the fair value of instruments at fair value through other comprehensive income, after tax | (53) | ||
Available-for-sale securities, before tax | (57) | (17) | |
Available-for-sale securities, tax effect | (12) | (7) | |
Available-for-sale securities, net of tax | (57) | (24) | |
Fair value through other comprehensive income, before tax | (41) | ||
Fair value through other comprehensive income, after tax | (53) | ||
Share of other comprehensive income/(loss) of associates and joint ventures, before tax | (240) | 1,053 | 45 |
Share of other comprehensive income/(loss) of associates and joint ventures, tax effect | 11 | ||
Share of other comprehensive income/(loss) of associates and joint ventures, net of tax | (229) | 1,053 | 45 |
Foreign currency translation differences, before tax | 3,399 | (3,792) | 4,298 |
Foreign currency translation differences, net of tax | 3,399 | (3,792) | 4,298 |
Other comprehensive income, before tax | (8,652) | (4,689) | 6,805 |
Other comprehensive income, tax effect | 2,028 | 313 | (472) |
Total other comprehensive income | ¥ (6,624) | ¥ (4,376) | ¥ 6,333 |
BASIC AND DILUTED EARNINGS PE_3
BASIC AND DILUTED EARNINGS PER SHARE - NET INCOME ATTRIBUTABLE TO ORDINARY OWNERS OF THE COMPANY (DILUTED) (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
BASIC AND DILUTED EARNINGS PER SHARE [abstract] | |||
Net income attributable to ordinary owners of the Company | ¥ 61,618 | ¥ 51,244 | ¥ 46,672 |
After tax effect of employee share option scheme of Shanghai Petrochemical | (2) | (3) | |
Net income attributable to ordinary owners of the company (diluted) | ¥ 61,618 | ¥ 51,242 | ¥ 46,669 |
BASIC AND DILUTED EARNINGS PE_4
BASIC AND DILUTED EARNINGS PER SHARE - WEIGHTED AVERAGE NUMBER OF SHARES (DILUTED) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted average number of shares (diluted) [abstract] | |||
Weighted average number of shares as of December 31 | 121,071,209,646 | 121,071,209,646 | 121,071,209,646 |
Weighted average number of shares (diluted) as of December 31 | 121,071,209,646 | 121,071,209,646 | 121,071,209,646 |
FINANCIAL ASSETS AT FAIR VALU_3
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit or loss | ¥ 25,732 | ¥ 51,196 |
Structured deposit | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit or loss | 25,550 | ¥ 51,196 |
Equity investments, listed and at quoted market price | ||
Disclosure of financial assets [line items] | ||
Financial assets at fair value through profit or loss | ¥ 182 |
TRADE ACCOUNTS RECEIVABLE AND_3
TRADE ACCOUNTS RECEIVABLE AND BILLS RECEIVABLE (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of trade accounts receivable [line items] | ||
Trade accounts receivable, gross amount | ¥ 57,599 | ¥ 69,106 |
Less: impairment loss for bad and doubtful debts | (606) | (612) |
Trade accounts receivable, net | 56,993 | 68,494 |
Bills receivable | 7,886 | 16,207 |
Trade accounts receivable and bills receivable | 64,879 | 84,701 |
Sinopec Group Company and fellow subsidiaries | ||
Disclosure of trade accounts receivable [line items] | ||
Trade accounts receivable, gross amount | 3,170 | 7,941 |
Associates and joint ventures | ||
Disclosure of trade accounts receivable [line items] | ||
Trade accounts receivable, gross amount | 4,321 | 4,962 |
Third parties | ||
Disclosure of trade accounts receivable [line items] | ||
Trade accounts receivable, gross amount | ¥ 50,108 | ¥ 56,203 |
TRADE ACCOUNTS RECEIVABLE AND_4
TRADE ACCOUNTS RECEIVABLE AND BILLS RECEIVABLE - AGEING ANALYSIS OF TRADE ACCOUNTS AND BILLS RECEIVABLES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Trade accounts receivable and bills receivable | ¥ 64,879 | ¥ 84,701 |
Within one year | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Trade accounts receivable and bills receivable | 64,317 | 83,984 |
Between one and two years | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Trade accounts receivable and bills receivable | 353 | 573 |
Between two and three years | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Trade accounts receivable and bills receivable | 124 | 43 |
Over three years | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Trade accounts receivable and bills receivable | ¥ 85 | ¥ 101 |
TRADE ACCOUNTS RECEIVABLE AND_5
TRADE ACCOUNTS RECEIVABLE AND BILLS RECEIVABLE - IMPAIRMENT LOSSES FOR BAD AND DOUBTFUL DEBTS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial assets that are either past due or impaired [line items] | |||
Balance at beginning of year | ¥ 612 | ||
Provision for the year | 6 | ¥ (51) | ¥ 230 |
Balance at end of year | 606 | 612 | |
Financial assets neither past due nor impaired | |||
Disclosure of financial assets that are either past due or impaired [line items] | |||
Balance at beginning of year | 612 | 683 | 525 |
Provision for the year | 83 | 49 | 238 |
Written back for the year | (77) | (100) | (8) |
Written off for the year | (19) | (21) | (72) |
Others | 7 | 1 | |
Balance at end of year | ¥ 606 | ¥ 612 | ¥ 683 |
INVENTORIES (Details)
INVENTORIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
INVENTORIES [abstract] | ||||
Crude oil and other raw materials | ¥ 85,469 | ¥ 85,975 | ||
Work in progress | 13,690 | 14,774 | ||
Finished goods | 88,929 | 84,448 | ||
Spare parts and consumables | 2,872 | 2,651 | ||
Inventories, book value | 190,960 | 187,848 | ||
Less: Allowance for diminution in value of inventories | (6,376) | (1,155) | ¥ (920) | ¥ (4,402) |
Inventories | ¥ 184,584 | ¥ 186,693 |
INVENTORIES - ALLOWANCE FOR DIM
INVENTORIES - ALLOWANCE FOR DIMINUTION IN VALUE OF INVENTORIES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
INVENTORIES [abstract] | |||
Balance at beginning of year | ¥ 1,155 | ¥ 920 | ¥ 4,402 |
Allowance for the year | 5,535 | 436 | 430 |
Reversal of allowance on disposal | (114) | (13) | (10) |
Written off | (217) | (190) | (4,021) |
Other increase | 17 | 2 | 119 |
Balance at end of year | 6,376 | 1,155 | 920 |
Costs of inventories recognized as an expense | ¥ 2,366,199 | ¥ 1,854,629 | ¥ 1,461,285 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [abstract] | ||
Other receivables | ¥ 26,455 | ¥ 17,704 |
Advances to suppliers | 5,937 | 4,901 |
Value-added input tax to be deducted | 21,331 | 17,926 |
Prepaid income tax | 300 | 398 |
Prepaid expenses and other current assets | ¥ 54,023 | ¥ 40,929 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | ¥ 650,774 | ¥ 690,594 |
Balance at end of year | 617,762 | 650,774 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | 1,727,982 | 1,658,541 |
Additions | 5,644 | 14,464 |
Transferred from construction in progress | 73,210 | 81,275 |
Reclassification to lease prepayments and other long-term assets | (4,311) | (11,312) |
Disposals | (21,652) | (12,074) |
Exchange adjustments | 2,387 | (2,912) |
Balance at end of year | 1,783,260 | 1,727,982 |
Accumulated amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | (1,077,208) | (967,947) |
Reclassification to lease prepayments and other long-term assets | 1,510 | 4,225 |
Disposals | (18,251) | (9,858) |
Exchange adjustments | 1,998 | (2,209) |
Depreciation for the year | 99,904 | 105,717 |
Impairment losses for the year | 6,149 | 19,836 |
Balance at end of year | (1,165,498) | (1,077,208) |
Buildings | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | 67,813 | 66,348 |
Balance at end of year | 66,907 | 67,813 |
Buildings | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | 120,013 | 114,920 |
Additions | 221 | 854 |
Transferred from construction in progress | 3,741 | 6,789 |
Reclassifications | 1,634 | (673) |
Reclassification to lease prepayments and other long-term assets | (483) | (859) |
Disposals | (3,183) | (878) |
Exchange adjustments | 98 | (140) |
Balance at end of year | 122,041 | 120,013 |
Buildings | Accumulated amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | (52,200) | (48,572) |
Reclassifications | 494 | (122) |
Reclassification to lease prepayments and other long-term assets | 120 | 238 |
Disposals | (1,795) | (584) |
Exchange adjustments | 43 | (57) |
Depreciation for the year | 4,038 | 4,075 |
Impairment losses for the year | 274 | 554 |
Balance at end of year | (55,134) | (52,200) |
Oil and gas properties | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | 171,840 | 215,124 |
Balance at end of year | 145,436 | 171,840 |
Oil and gas properties | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | 667,657 | 650,685 |
Additions | 1,567 | 1,627 |
Transferred from construction in progress | 24,366 | 19,881 |
Reclassifications | 138 | (50) |
Reclassification to lease prepayments and other long-term assets | (1,702) | |
Disposals | (146) | (211) |
Exchange adjustments | 2,142 | (2,573) |
Balance at end of year | 695,724 | 667,657 |
Oil and gas properties | Accumulated amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | (495,817) | (435,561) |
Reclassifications | 76 | (77) |
Reclassification to lease prepayments and other long-term assets | 1,305 | |
Disposals | (125) | (195) |
Exchange adjustments | 1,877 | (2,056) |
Depreciation for the year | 48,616 | 55,057 |
Impairment losses for the year | 4,027 | 8,832 |
Balance at end of year | (550,288) | (495,817) |
Equipment, machinery and others [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | 411,121 | 409,122 |
Balance at end of year | 405,419 | 411,121 |
Equipment, machinery and others [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | 940,312 | 892,936 |
Additions | 3,856 | 11,983 |
Transferred from construction in progress | 45,103 | 54,605 |
Reclassifications | (1,772) | 723 |
Reclassification to lease prepayments and other long-term assets | (3,828) | (8,751) |
Disposals | (18,323) | (10,985) |
Exchange adjustments | 147 | (199) |
Balance at end of year | 965,495 | 940,312 |
Equipment, machinery and others [member] | Accumulated amortization [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Balance at beginning of year | (529,191) | (483,814) |
Reclassifications | (570) | 199 |
Reclassification to lease prepayments and other long-term assets | 1,390 | 2,682 |
Disposals | (16,331) | (9,079) |
Exchange adjustments | 78 | (96) |
Depreciation for the year | 47,250 | 46,585 |
Impairment losses for the year | 1,848 | 10,450 |
Balance at end of year | ¥ (560,076) | ¥ (529,191) |
CONSTRUCTION IN PROGRESS (Detai
CONSTRUCTION IN PROGRESS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | ¥ 650,774 | ¥ 690,594 | |
Dry hole costs written off | 6,921 | 6,876 | ¥ 7,467 |
Balance at end of year | 617,762 | 650,774 | 690,594 |
Construction in progress | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 118,645 | 129,581 | |
Additions | 108,555 | 85,552 | |
Dry hole costs written off | (6,921) | (6,876) | |
Transferred to property, plant and equipment | (73,210) | (81,229) | |
Reclassification to lease prepayments and other long-term assets | (10,066) | (7,773) | |
Impairment losses for the year | (28) | (252) | |
Disposals | (19) | (315) | |
Exchange adjustments | 7 | (43) | |
Balance at end of year | ¥ 136,963 | ¥ 118,645 | ¥ 129,581 |
CONSTRUCTION IN PROGRESS - NET
CONSTRUCTION IN PROGRESS - NET CHANGES IN CAPITALIZED COST OF EXPLORATORY WELLS IN THE E AND P SEGMENT (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net changes in capitalized cost of exploratory wells in exploration and production segment [line items] | |||
Balance at beginning of year | ¥ 9,737 | ¥ 12,192 | |
Dry hole costs written off | 6,921 | 6,876 | ¥ 7,467 |
Balance at end of year | 7,296 | 9,737 | 12,192 |
Exploration and production | |||
Disclosure of net changes in capitalized cost of exploratory wells in exploration and production segment [line items] | |||
Balance at beginning of year | 9,737 | 12,192 | 16,772 |
Additions, net of amount that were capitalized and subsequently expensed in the same year, pending the determination of proved reserves | 7,172 | 5,567 | 6,321 |
Transferred to oil and gas properties based on the determination of proved reserves | (2,387) | (1,839) | (3,716) |
Dry hole costs written off | (7,226) | (6,183) | (7,185) |
Balance at end of year | ¥ 7,296 | ¥ 9,737 | ¥ 12,192 |
CONSTRUCTION IN PROGRESS - AGIN
CONSTRUCTION IN PROGRESS - AGING OF CAPITALIZED EXPLORATORY WELL COSTS BASED ON THE DRILLING COMPLETION DATE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of aging of capitalized exploratory well costs based on drilling completion date [line items] | |||
Capitalized exploratory well costs | ¥ 7,296 | ¥ 9,737 | ¥ 12,192 |
Geological and geophysical costs | 3,511 | 3,710 | 2,899 |
Within one year | |||
Disclosure of aging of capitalized exploratory well costs based on drilling completion date [line items] | |||
Capitalized exploratory well costs | 3,467 | 4,917 | 4,731 |
Over one year [member] | |||
Disclosure of aging of capitalized exploratory well costs based on drilling completion date [line items] | |||
Capitalized exploratory well costs | ¥ 3,829 | ¥ 4,820 | ¥ 7,461 |
GOODWILL - IMPAIRMENT TESTS FOR
GOODWILL - IMPAIRMENT TESTS FOR CASH-GENERATING UNITS CONTAINING GOODWILL (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill | ¥ 8,676 | ¥ 8,634 |
Cost [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill | 16,537 | 16,495 |
Accumulated impairment [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill | ¥ 7,861 | ¥ 7,861 |
GOODWILL - GOODWILL ALLOCATED T
GOODWILL - GOODWILL ALLOCATED TO CASH-GENERATING UNITS (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of information for cash-generating units [line items] | ||
Goodwill | ¥ 8,676 | ¥ 8,634 |
Sinopec Yanshan | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 1,004 | 1,004 |
Sinopec Zhenhai | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 4,043 | 4,043 |
Shanghai SECCO | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 2,541 | 2,541 |
Sinopec Hong Kong Limited | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 921 | 879 |
Other units without individually significant goodwill | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | ¥ 167 | ¥ 167 |
GOODWILL - RECOVERABLE AMOUNTS
GOODWILL - RECOVERABLE AMOUNTS OF CASH-GENERATING UNITS - NARRATIVE (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information for cash-generating units [line items] | ||
Explanation of period over which management has projected cash flows | P1Y | P1Y |
Maximum | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rates applied to cash flow projections | 12.30% | 11.40% |
Minimum | ||
Disclosure of information for cash-generating units [line items] | ||
Pre-tax discount rates applied to cash flow projections | 11.70% | 10.80% |
INTEREST IN ASSOCIATES - PRINCI
INTEREST IN ASSOCIATES - PRINCIPAL ASSOCIATES (Details) ₽ in Millions, ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018RUB (₽) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disclosure of associates [line items] | ||||
Particulars of issued and paid up capital | ¥ 121,071 | ¥ 121,071 | ||
Sinopec Sichuan to East China Gas Pipeline Co., Ltd. ("Pipeline Ltd") [member] | ||||
Disclosure of associates [line items] | ||||
Particulars of issued and paid up capital | ¥ 200 | |||
Percentage of equity held by Company's subsidiaries | 50.00% | 50.00% | 50.00% | |
Sinopec Finance Company Limited ("Sinopec Finance") [member] | ||||
Disclosure of associates [line items] | ||||
Particulars of issued and paid up capital | ¥ 18,000 | |||
Percentage of equity held by the Company | 49.00% | |||
SIBUR | ||||
Disclosure of associates [line items] | ||||
Particulars of issued and paid up capital | ₽ | ₽ 21,784 | |||
Percentage of equity held by Company's subsidiaries | 10.00% | 10.00% | 10.00% | |
Zhongtian Synergetic Energy Company Limited ("Zhongtian Synergetic Energy") [member] | ||||
Disclosure of associates [line items] | ||||
Particulars of issued and paid up capital | ¥ 17,516 | |||
Percentage of equity held by Company's subsidiaries | 38.75% | 38.75% | 38.75% | |
Caspian Investments Resources Ltd. ("CIR") [member] | ||||
Disclosure of associates [line items] | ||||
Particulars of issued and paid up capital | $ | $ 10,000 | |||
Percentage of equity held by Company's subsidiaries | 50.00% | 50.00% | 50.00% |
INTEREST IN ASSOCIATES - SUMMAR
INTEREST IN ASSOCIATES - SUMMARIZED FINANCIAL INFORMATION (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
INTEREST IN ASSOCIATES | |||
Current assets | ¥ 504,120 | ¥ 529,049 | ¥ 529,049 |
Non-current assets | 1,088,188 | 1,066,455 | 1,066,455 |
Current liabilities | (565,098) | (579,446) | (579,446) |
Non-current liabilities | (170,675) | ¥ (163,168) | (163,168) |
Net assets attributable to owners of the Company | 717,284 | 726,120 | |
Net assets attributable to non-controlling interests | 139,251 | 126,770 | |
Sinopec Sichuan to East China Gas Pipeline Co., Ltd. ("Pipeline Ltd") [member] | |||
INTEREST IN ASSOCIATES | |||
Current assets | 12,498 | 11,317 | |
Non-current assets | 39,320 | 40,972 | |
Current liabilities | (1,020) | (933) | |
Non-current liabilities | (3,026) | (3,176) | |
Net assets | 47,772 | 48,180 | |
Net assets attributable to owners of the Company | 47,772 | 48,180 | |
Share of net assets from associates | 23,886 | 24,090 | |
Carrying Amounts | 23,886 | 24,090 | |
Sinopec Finance Company Limited ("Sinopec Finance") [member] | |||
INTEREST IN ASSOCIATES | |||
Current assets | 209,837 | 161,187 | |
Non-current assets | 16,359 | 17,782 | |
Current liabilities | (200,402) | (154,212) | |
Non-current liabilities | (332) | (6) | |
Net assets | 25,462 | 24,751 | |
Net assets attributable to owners of the Company | 25,462 | 24,751 | |
Share of net assets from associates | 12,476 | 12,128 | |
Carrying Amounts | 12,476 | 12,128 | |
SIBUR | |||
INTEREST IN ASSOCIATES | |||
Current assets | 22,502 | 20,719 | |
Non-current assets | 170,796 | 158,938 | |
Current liabilities | (23,293) | (20,554) | |
Non-current liabilities | (58,628) | (61,771) | |
Net assets | 111,377 | 97,332 | |
Net assets attributable to owners of the Company | 110,860 | 96,761 | |
Net assets attributable to non-controlling interests | 517 | 571 | |
Share of net assets from associates | 11,086 | 9,676 | |
Carrying Amounts | 11,086 | 9,676 | |
Zhongtian Synergetic Energy Company Limited ("Zhongtian Synergetic Energy") [member] | |||
INTEREST IN ASSOCIATES | |||
Current assets | 7,477 | 8,232 | |
Non-current assets | 49,961 | 51,553 | |
Current liabilities | (7,252) | (10,668) | |
Non-current liabilities | (31,436) | (31,494) | |
Net assets | 18,750 | 17,623 | |
Net assets attributable to owners of the Company | 18,750 | 17,623 | |
Share of net assets from associates | 7,266 | 6,829 | |
Carrying Amounts | 7,266 | 6,829 | |
Caspian Investments Resources Ltd. ("CIR") [member] | |||
INTEREST IN ASSOCIATES | |||
Current assets | 6,712 | 5,612 | |
Non-current assets | 1,828 | 1,673 | |
Current liabilities | (961) | (908) | |
Non-current liabilities | (673) | (170) | |
Net assets | 6,906 | 6,207 | |
Net assets attributable to owners of the Company | 6,906 | 6,207 | |
Share of net assets from associates | 3,453 | 3,104 | |
Carrying Amounts | ¥ 3,453 | ¥ 3,104 |
INTEREST IN ASSOCIATES - SUMM_2
INTEREST IN ASSOCIATES - SUMMARIZED STATEMENT OF COMPREHENSIVE INCOME (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of associates [line items] | |||
Operating revenues | ¥ 2,891,179 | ¥ 2,360,193 | ¥ 1,930,911 |
Net income/(loss) for the year | 78,897 | 70,418 | 59,444 |
Other comprehensive (loss)/income | (6,624) | (4,376) | 6,333 |
Total comprehensive income for the year | 72,273 | 66,042 | 65,777 |
Sinopec Sichuan to East China Gas Pipeline Co., Ltd. ("Pipeline Ltd") [member] | |||
Disclosure of associates [line items] | |||
Operating revenues | 4,746 | 5,644 | 191 |
Net income/(loss) for the year | 2,022 | 2,543 | 51 |
Total comprehensive income for the year | 2,022 | 2,543 | 51 |
Dividends declared by associates | 1,207 | 23 | |
Share of net income/(loss) from associates | 1,011 | 1,272 | 26 |
Carrying Amounts | 23,886 | 24,090 | |
Sinopec Finance Company Limited ("Sinopec Finance") [member] | |||
Disclosure of associates [line items] | |||
Operating revenues | 4,536 | 3,542 | 2,442 |
Net income/(loss) for the year | 1,868 | 1,536 | 1,526 |
Other comprehensive (loss)/income | (157) | (246) | (175) |
Total comprehensive income for the year | 1,711 | 1,290 | 1,351 |
Dividends declared by associates | 490 | ||
Share of net income/(loss) from associates | 915 | 753 | 748 |
Share of other comprehensive (loss)/income from associates | (77) | (121) | (86) |
Carrying Amounts | 12,476 | 12,128 | |
SIBUR | |||
Disclosure of associates [line items] | |||
Operating revenues | 59,927 | 52,496 | |
Net income/(loss) for the year | 10,400 | 9,601 | |
Other comprehensive (loss)/income | 6,410 | (260) | |
Total comprehensive income for the year | 16,810 | 9,341 | |
Dividends declared by associates | 271 | 221 | |
Share of net income/(loss) from associates | 1,040 | 960 | |
Share of other comprehensive (loss)/income from associates | 641 | (26) | |
Carrying Amounts | 11,086 | 9,676 | |
Zhongtian Synergetic Energy Company Limited ("Zhongtian Synergetic Energy") [member] | |||
Disclosure of associates [line items] | |||
Operating revenues | 12,235 | 3,569 | |
Net income/(loss) for the year | 1,142 | 123 | |
Total comprehensive income for the year | 1,142 | 123 | |
Share of net income/(loss) from associates | 443 | 48 | |
Carrying Amounts | 7,266 | 6,829 | |
Caspian Investments Resources Ltd. ("CIR") [member] | |||
Disclosure of associates [line items] | |||
Operating revenues | 2,856 | 2,563 | 2,205 |
Net income/(loss) for the year | 583 | (610) | (3,518) |
Other comprehensive (loss)/income | 116 | (334) | 662 |
Total comprehensive income for the year | 699 | (944) | (2,856) |
Share of net income/(loss) from associates | 292 | (305) | (1,759) |
Share of other comprehensive (loss)/income from associates | 58 | (167) | 331 |
Carrying Amounts | 3,453 | 3,104 | |
Aggregated individually immaterial associates | |||
Disclosure of associates [line items] | |||
Share of net income/(loss) from associates | 3,550 | 3,182 | 2,869 |
Share of other comprehensive (loss)/income from associates | (844) | 569 | ¥ (384) |
Carrying Amounts | ¥ 31,370 | ¥ 23,899 |
INTEREST IN JOINT VENTURES - PR
INTEREST IN JOINT VENTURES - PRINCIPAL JOINT VENTURES (Details) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disclosure of joint ventures [line items] | |||
Particulars of issued and paid up capital | ¥ 121,071 | ¥ 121,071 | |
Fujian Refining & Petrochemical Company Limited ("FREP") [member] | |||
Disclosure of joint ventures [line items] | |||
Particulars of issued and paid up capital | ¥ 14,758 | ||
Percentage of equity held by Company's subsidiaries | 50.00% | 50.00% | |
BASF-YPC Company Limited ("BASF-YPC") [member] | |||
Disclosure of joint ventures [line items] | |||
Particulars of issued and paid up capital | ¥ 12,547 | ||
Percentage of equity held by the Company | 30.00% | ||
Percentage of equity held by Company's subsidiaries | 10.00% | 10.00% | |
Taihu Limited ("Taihu") [member] | |||
Disclosure of joint ventures [line items] | |||
Particulars of issued and paid up capital | $ | $ 25,000 | ||
Percentage of equity held by Company's subsidiaries | 49.00% | 49.00% | |
Yanbu Aramco Sinopec Refining Company Ltd. ("YASREF") [member] | |||
Disclosure of joint ventures [line items] | |||
Particulars of issued and paid up capital | $ | $ 1,560,000,000 | ||
Percentage of equity held by Company's subsidiaries | 37.50% | 37.50% | |
Sinopec SABIC Tianjin | |||
Disclosure of joint ventures [line items] | |||
Particulars of issued and paid up capital | ¥ 9,796 | ||
Percentage of equity held by Company's subsidiaries | 50.00% | 50.00% |
INTEREST IN JOINT VENTURES - SU
INTEREST IN JOINT VENTURES - SUMMARIZED FINANCIAL INFORMATION (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | |||||
Cash and cash equivalents | ¥ 111,922 | ¥ 113,218 | ¥ 124,468 | ¥ 68,933 | |
Total current assets | 504,120 | ¥ 529,049 | 529,049 | ||
Non-current assets | 1,088,188 | 1,066,455 | 1,066,455 | ||
Current liabilities | |||||
Total current liabilities | (565,098) | (579,446) | (579,446) | ||
Non-current liabilities | |||||
Other non-current liabilities | (28,400) | (17,620) | |||
Total non-current liabilities | (170,675) | ¥ (163,168) | (163,168) | ||
Net assets attributable to owners of the Company | 717,284 | 726,120 | |||
Net assets attributable to non-controlling interests | 139,251 | 126,770 | |||
Fujian Refining & Petrochemical Company Limited ("FREP") [member] | |||||
Current assets | |||||
Cash and cash equivalents | 7,388 | 5,772 | |||
Other current assets | 9,248 | 11,013 | |||
Total current assets | 16,636 | 16,785 | |||
Non-current assets | 19,271 | 19,740 | |||
Current liabilities | |||||
Current financial liabilities | (1,200) | (1,135) | |||
Other current liabilities | (4,939) | (5,049) | |||
Total current liabilities | (6,139) | (6,184) | |||
Non-current liabilities | |||||
Non-current financial liabilities | (12,454) | (13,654) | |||
Other non-current liabilities | (279) | (236) | |||
Total non-current liabilities | (12,733) | (13,890) | |||
Net assets | 17,035 | 16,451 | |||
Net assets attributable to owners of the Company | 17,035 | 16,451 | |||
Share of net assets from associates | 8,518 | 8,226 | |||
Carrying Amounts | 8,518 | 8,226 | |||
BASF-YPC Company Limited ("BASF-YPC") [member] | |||||
Current assets | |||||
Cash and cash equivalents | 1,582 | 1,800 | |||
Other current assets | 5,795 | 5,335 | |||
Total current assets | 7,377 | 7,135 | |||
Non-current assets | 11,086 | 12,075 | |||
Current liabilities | |||||
Current financial liabilities | (725) | (233) | |||
Other current liabilities | (1,822) | (1,982) | |||
Total current liabilities | (2,547) | (2,215) | |||
Non-current liabilities | |||||
Non-current financial liabilities | (218) | (955) | |||
Other non-current liabilities | (17) | (19) | |||
Total non-current liabilities | (235) | (974) | |||
Net assets | 15,681 | 16,021 | |||
Net assets attributable to owners of the Company | 15,681 | 16,021 | |||
Share of net assets from associates | 6,272 | 6,409 | |||
Carrying Amounts | 6,272 | 6,409 | |||
Taihu Limited ("Taihu") [member] | |||||
Current assets | |||||
Cash and cash equivalents | 3,406 | 2,352 | |||
Other current assets | 3,689 | 2,462 | |||
Total current assets | 7,095 | 4,814 | |||
Non-current assets | 9,216 | 7,978 | |||
Current liabilities | |||||
Current financial liabilities | (59) | (20) | |||
Other current liabilities | (2,124) | (1,914) | |||
Total current liabilities | (2,183) | (1,934) | |||
Non-current liabilities | |||||
Non-current financial liabilities | (72) | (72) | |||
Other non-current liabilities | (2,271) | (2,686) | |||
Total non-current liabilities | (2,343) | (2,758) | |||
Net assets | 11,785 | 8,100 | |||
Net assets attributable to owners of the Company | 11,373 | 7,818 | |||
Net assets attributable to non-controlling interests | 412 | 282 | |||
Share of net assets from associates | 5,573 | 3,831 | |||
Carrying Amounts | 5,573 | 3,831 | |||
Yanbu Aramco Sinopec Refining Company Ltd. ("YASREF") [member] | |||||
Current assets | |||||
Cash and cash equivalents | 930 | 4,916 | |||
Other current assets | 10,267 | 10,816 | |||
Total current assets | 11,197 | 15,732 | |||
Non-current assets | 51,873 | 51,553 | |||
Current liabilities | |||||
Current financial liabilities | (4,806) | (5,407) | |||
Other current liabilities | (12,217) | (11,864) | |||
Total current liabilities | (17,023) | (17,271) | |||
Non-current liabilities | |||||
Non-current financial liabilities | (32,364) | (35,619) | |||
Other non-current liabilities | (937) | (890) | |||
Total non-current liabilities | (33,301) | (36,509) | |||
Net assets | 12,746 | 13,505 | |||
Net assets attributable to owners of the Company | 12,746 | 13,505 | |||
Share of net assets from associates | 4,780 | 5,064 | |||
Carrying Amounts | 4,780 | 5,064 | |||
Sinopec SABIC Tianjin | |||||
Current assets | |||||
Cash and cash equivalents | 5,110 | 6,524 | |||
Other current assets | 4,007 | 2,709 | |||
Total current assets | 9,117 | 9,233 | |||
Non-current assets | 13,990 | 13,248 | |||
Current liabilities | |||||
Current financial liabilities | (500) | (1,236) | |||
Other current liabilities | (2,507) | (4,546) | |||
Total current liabilities | (3,007) | (5,782) | |||
Non-current liabilities | |||||
Non-current financial liabilities | (3,651) | (4,101) | |||
Other non-current liabilities | (331) | (41) | |||
Total non-current liabilities | (3,982) | (4,142) | |||
Net assets | 16,118 | 12,557 | |||
Net assets attributable to owners of the Company | 16,118 | 12,557 | |||
Share of net assets from associates | 8,059 | 6,279 | |||
Carrying Amounts | ¥ 8,059 | ¥ 6,279 |
INTEREST IN JOINT VENTURES - _2
INTEREST IN JOINT VENTURES - SUMMARIZED STATEMENT OF COMPREHENSIVE INCOME (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of joint ventures [line items] | |||
Operating revenues | ¥ 2,891,179 | ¥ 2,360,193 | ¥ 1,930,911 |
Depreciation, depletion and amortization | (109,967) | (115,310) | (108,425) |
Interest income | 7,726 | 5,254 | 3,218 |
Interest expense | (7,321) | (7,146) | (9,219) |
Earning/(loss) before income tax | 99,110 | 86,697 | 80,151 |
Tax expense | (20,213) | (16,279) | (20,707) |
Net income/(loss) for the year | 78,897 | 70,418 | 59,444 |
Other comprehensive (loss)/income | (6,624) | (4,376) | 6,333 |
Total comprehensive income for the year | 72,273 | 66,042 | 65,777 |
Fujian Refining & Petrochemical Company Limited ("FREP") [member] | |||
Disclosure of joint ventures [line items] | |||
Operating revenues | 52,469 | 49,356 | 41,764 |
Depreciation, depletion and amortization | (2,250) | (16) | (52) |
Interest income | 157 | 208 | 130 |
Interest expense | (647) | (857) | (929) |
Earning/(loss) before income tax | 3,920 | 6,977 | 6,476 |
Tax expense | (935) | (1,699) | (1,574) |
Net income/(loss) for the year | 2,985 | 5,278 | 4,902 |
Total comprehensive income for the year | 2,985 | 5,278 | 4,902 |
Dividends declared by joint ventures | 1,200 | 1,250 | |
Share of net income/(loss) from joint ventures | 1,493 | 2,639 | 2,451 |
Carrying Amounts | 8,518 | 8,226 | |
BASF-YPC Company Limited ("BASF-YPC") [member] | |||
Disclosure of joint ventures [line items] | |||
Operating revenues | 21,574 | 21,020 | 17,323 |
Depreciation, depletion and amortization | (1,521) | (1,793) | (2,275) |
Interest income | 41 | 36 | 19 |
Interest expense | (43) | (71) | (173) |
Earning/(loss) before income tax | 3,625 | 4,565 | 2,606 |
Tax expense | (897) | (1,151) | (648) |
Net income/(loss) for the year | 2,728 | 3,414 | 1,958 |
Total comprehensive income for the year | 2,728 | 3,414 | 1,958 |
Dividends declared by joint ventures | 1,226 | 1,109 | 155 |
Share of net income/(loss) from joint ventures | 1,091 | 1,366 | 783 |
Carrying Amounts | 6,272 | 6,409 | |
Taihu Limited ("Taihu") [member] | |||
Disclosure of joint ventures [line items] | |||
Operating revenues | 14,944 | 12,520 | 9,658 |
Depreciation, depletion and amortization | (664) | (715) | (1,043) |
Interest income | 141 | 142 | 40 |
Interest expense | (151) | (142) | (113) |
Earning/(loss) before income tax | 3,493 | 1,697 | 2,411 |
Tax expense | (729) | (553) | (518) |
Net income/(loss) for the year | 2,764 | 1,144 | 1,893 |
Other comprehensive (loss)/income | 921 | 25 | 1,851 |
Total comprehensive income for the year | 3,685 | 1,169 | 3,744 |
Share of net income/(loss) from joint ventures | 1,307 | 541 | 895 |
Share of other comprehensive (loss)/income from joint ventures | 435 | 12 | 875 |
Carrying Amounts | 5,573 | 3,831 | |
Yanbu Aramco Sinopec Refining Company Ltd. ("YASREF") [member] | |||
Disclosure of joint ventures [line items] | |||
Operating revenues | 77,561 | 61,587 | 41,286 |
Depreciation, depletion and amortization | (2,823) | (2,763) | (2,754) |
Interest income | 101 | 45 | 33 |
Interest expense | (1,382) | (1,382) | (1,216) |
Earning/(loss) before income tax | (1,569) | 548 | 28 |
Tax expense | (249) | 57 | 56 |
Net income/(loss) for the year | (1,818) | 605 | 84 |
Other comprehensive (loss)/income | 1,059 | (554) | 647 |
Total comprehensive income for the year | (759) | 51 | 731 |
Share of net income/(loss) from joint ventures | (682) | 227 | 31 |
Share of other comprehensive (loss)/income from joint ventures | 397 | (208) | 243 |
Carrying Amounts | 4,780 | 5,064 | |
Sinopec SABIC Tianjin | |||
Disclosure of joint ventures [line items] | |||
Operating revenues | 23,501 | 22,286 | 16,337 |
Depreciation, depletion and amortization | (1,104) | (36) | (33) |
Interest income | 169 | 104 | 30 |
Interest expense | (167) | (223) | (245) |
Earning/(loss) before income tax | 3,916 | 5,113 | 3,184 |
Tax expense | (993) | (1,279) | (783) |
Net income/(loss) for the year | 2,923 | 3,834 | 2,401 |
Total comprehensive income for the year | 2,923 | 3,834 | 2,401 |
Dividends declared by joint ventures | 1,375 | 300 | |
Share of net income/(loss) from joint ventures | 1,462 | 1,917 | 1,201 |
Carrying Amounts | 8,059 | 6,279 | |
Aggregated individually immaterial joint ventures | |||
Disclosure of joint ventures [line items] | |||
Share of net income/(loss) from joint ventures | 2,052 | 3,925 | 2,061 |
Share of other comprehensive (loss)/income from joint ventures | (839) | 994 | ¥ (934) |
Carrying Amounts | ¥ 22,982 | ¥ 21,552 |
DEFERRED TAX ASSETS AND LIABI_3
DEFERRED TAX ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | ¥ 25,403 | ¥ 19,470 |
Liabilities | (9,657) | (10,805) |
Receivables and inventories | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | 2,563 | 381 |
Payables | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | 1,808 | 1,925 |
Cash flow hedges | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | 1,131 | 165 |
Liabilities | (27) | (50) |
Property, plant and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | 15,427 | 14,150 |
Liabilities | (8,666) | (9,928) |
Tax losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | 3,709 | 2,325 |
Available-for-sale financial assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | 117 | |
Financial assets at fair value through other comprehensive income | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | 117 | |
Liabilities | (1) | |
Intangible assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | 474 | 227 |
Liabilities | (535) | (563) |
Others | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Assets | 174 | 180 |
Liabilities | ¥ (428) | ¥ (264) |
DEFERRED TAX ASSETS AND LIABI_4
DEFERRED TAX ASSETS AND LIABILITIES - UNRECOGNIZED DEFERRED TAX OF CERTAIN SUBSIDIARIES - NARRATIVE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deductible tax losses carried forward | ¥ 18,308 | ¥ 20,821 | |
Write-down of deferred tax assets | 188 | ¥ 26 | ¥ 811 |
Within one year | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deductible tax losses carried forward | 2,373 | ||
Between one and two years | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deductible tax losses carried forward | 3,887 | ||
Between two and three years | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deductible tax losses carried forward | 3,673 | ||
Between three and four years | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deductible tax losses carried forward | 5,938 | ||
Later than four years | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deductible tax losses carried forward | ¥ 2,437 |
DEFERRED TAX ASSETS AND LIABI_5
DEFERRED TAX ASSETS AND LIABILITIES - MOVEMENTS IN DEFERRED TAX ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | ¥ 8,665 | ¥ (447) | ¥ (790) |
Recognized in consolidated statement of income | 6,244 | 10,317 | 834 |
Recognized in other comprehensive income | 1,905 | 582 | (838) |
Others | (37) | (1) | 347 |
Acquisition of Shanghai SECCO | (1,786) | ||
Transferred from reserve | 1,031 | ||
Balance at end of year | 15,746 | 8,665 | (447) |
Receivables and inventories | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 381 | 87 | 1,552 |
Recognized in consolidated statement of income | 2,176 | 300 | (1,505) |
Recognized in other comprehensive income | 3 | (5) | 6 |
Others | 3 | (1) | 34 |
Balance at end of year | 2,563 | 381 | 87 |
Payables | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 1,925 | 391 | 413 |
Recognized in consolidated statement of income | (117) | 1,534 | (22) |
Balance at end of year | 1,808 | 1,925 | 391 |
Cash flow hedges | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 115 | (215) | 250 |
Recognized in consolidated statement of income | (10) | 9 | |
Recognized in other comprehensive income | 2,029 | 313 | (465) |
Others | 1 | 8 | |
Transferred from reserve | 1,031 | ||
Balance at end of year | 1,104 | 115 | (215) |
Property, plant and equipment | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 4,222 | (3,351) | (9,131) |
Recognized in consolidated statement of income | 2,650 | 8,475 | 6,063 |
Recognized in other comprehensive income | (130) | 287 | (392) |
Others | 19 | (8) | 109 |
Acquisition of Shanghai SECCO | (1,181) | ||
Balance at end of year | 6,761 | 4,222 | (3,351) |
Tax losses carried forward | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 2,325 | 2,477 | 5,883 |
Recognized in consolidated statement of income | 1,414 | (135) | (3,426) |
Recognized in other comprehensive income | 6 | (17) | 20 |
Others | (36) | ||
Balance at end of year | 3,709 | 2,325 | 2,477 |
Available-for-sale financial assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 117 | ||
Recognized in consolidated statement of income | 117 | (139) | |
Recognized in other comprehensive income | (7) | ||
Others | (117) | 146 | |
Balance at end of year | 117 | ||
Financial assets at fair value through other comprehensive income | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Recognized in other comprehensive income | (1) | ||
Others | 117 | ||
Balance at end of year | 116 | ||
Intangible assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | (336) | 260 | 203 |
Recognized in consolidated statement of income | 273 | (27) | (1) |
Others | 2 | 58 | |
Acquisition of Shanghai SECCO | (569) | ||
Balance at end of year | (61) | (336) | 260 |
Others | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | (84) | (96) | 40 |
Recognized in consolidated statement of income | (142) | 44 | (136) |
Recognized in other comprehensive income | (2) | 4 | |
Others | (26) | ||
Acquisition of Shanghai SECCO | (36) | ||
Balance at end of year | ¥ (254) | ¥ (84) | ¥ (96) |
LEASE PREPAYMENTS (Details)
LEASE PREPAYMENTS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about lease prepayments [line items] | |||
Balance as of beginning of year | ¥ 58,526 | ||
Amortization charge for the year | 109,967 | ¥ 115,310 | ¥ 108,425 |
Balance as of end of year | 64,514 | 58,526 | |
Cost [member] | |||
Disclosure of detailed information about lease prepayments [line items] | |||
Balance as of beginning of year | 75,728 | 68,467 | |
Additions | 249 | 2,614 | |
Transferred from construction in progress | 7,829 | 4,151 | |
Transferred from other long-term assets | 1,402 | 3,987 | |
Reclassification to other assets | (544) | (2,603) | |
Disposals | (152) | (531) | |
Exchange adjustments | 219 | (357) | |
Balance as of end of year | 84,731 | 75,728 | 68,467 |
Accumulated amortization [member] | |||
Disclosure of detailed information about lease prepayments [line items] | |||
Balance as of beginning of year | (17,202) | (14,226) | |
Amortization charge for the year | 2,519 | 2,076 | |
Transferred from other long-term assets | 617 | 2,027 | |
Reclassification to other assets | 154 | 770 | |
Disposals | 31 | 266 | |
Exchange adjustments | 64 | (91) | |
Balance as of end of year | ¥ (20,217) | ¥ (17,202) | ¥ (14,226) |
LONG-TERM PREPAYMENTS AND OTH_3
LONG-TERM PREPAYMENTS AND OTHER ASSETS (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about long-term prepayments and other assets [line items] | ||
Operating rights of service stations | ¥ 34,934 | ¥ 34,268 |
Others (i) | 24,459 | 21,989 |
Balance as of end of year | 91,408 | 81,982 |
Third parties | ||
Disclosure of detailed information about long-term prepayments and other assets [line items] | ||
Prepayments for construction projects to third parties | 5,502 | 4,999 |
Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about long-term prepayments and other assets [line items] | ||
Long-term receivables from and prepayment to Sinopec Group Company and fellow subsidiaries | ¥ 26,513 | ¥ 20,726 |
LONG-TERM PREPAYMENTS AND OTH_4
LONG-TERM PREPAYMENTS AND OTHER ASSETS - MOVEMENT OF OPERATING RIGHTS OF SERVICE STATIONS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about operating rights of service stations [line items] | ||
Balance as of beginning of year | ¥ 34,268 | |
Balance as of end of year | 34,934 | ¥ 34,268 |
Cost [member] | ||
Disclosure of detailed information about operating rights of service stations [line items] | ||
Balance as of beginning of year | 48,613 | 36,908 |
Additions | 3,948 | 11,837 |
Decreases | (345) | (132) |
Balance as of end of year | 52,216 | 48,613 |
Accumulated amortization [member] | ||
Disclosure of detailed information about operating rights of service stations [line items] | ||
Balance as of beginning of year | (14,345) | (10,012) |
Additions | 3,019 | 4,361 |
Decreases | (82) | (28) |
Balance as of end of year | ¥ (17,282) | ¥ (14,345) |
SHORT-TERM AND LOANS FROM SINOP
SHORT-TERM AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about short-term debts and loans [line items] | ||
Short-term debts | ¥ 29,462 | ¥ 55,338 |
Loans from Sinopec Group Company and fellow subsidiaries | 31,665 | 25,311 |
Total short-term debts | ¥ 61,127 | ¥ 80,649 |
Weighted interest rates on short-term loans | 3.37% | 2.72% |
Third parties | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Short-term bank loans | ¥ 17,088 | ¥ 31,105 |
Short-term other loans | 300 | 299 |
Current portion of long-term bank loans | 12,074 | 1,402 |
Current portion of long-term corporate bonds | 22,532 | |
Current portion of long-term debts | 12,074 | 23,934 |
Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Current portion of long-term debts | 4,361 | 2,014 |
Loans from Sinopec Group Company and fellow subsidiaries | 31,665 | 25,311 |
Total short-term debts | 27,304 | 23,297 |
RMB denominated | Third parties | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Short-term bank loans | 13,201 | 23,685 |
Short-term other loans | 300 | 299 |
Current portion of long-term bank loans | 12,039 | 1,379 |
Current portion of long-term corporate bonds | 16,000 | |
RMB denominated | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Current portion of long-term debts | 4,361 | 2,014 |
Total short-term debts | 3,061 | 1,706 |
US Dollar denominated | Third parties | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Short-term bank loans | 3,887 | 7,420 |
Current portion of long-term bank loans | 35 | 23 |
Current portion of long-term corporate bonds | 6,532 | |
US Dollar denominated | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Total short-term debts | 22,780 | 19,668 |
EUR | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Total short-term debts | 22 | |
HKD | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Total short-term debts | ¥ 1,441 | 1,903 |
SGD | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Total short-term debts | ¥ 20 |
LONG-TERM AND LOANS FROM SINOPE
LONG-TERM AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about long-term debts and loans [line items] | |||
Long-term debts | ¥ 51,011 | ¥ 55,804 | ¥ 72,674 |
Loans from Sinopec Group Company and fellow subsidiaries | 42,516 | 43,320 | |
Total long-term debts | 93,527 | 99,124 | |
Corporate bonds guaranteed by Sinopec Group Company | 11,951 | ||
Third parties | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Long-term bank loans | 31,134 | 25,836 | |
Corporate bonds (i) | 31,951 | 53,902 | |
Long-term debts | 63,085 | 79,738 | |
Less: Current portion | (12,074) | (23,934) | |
Sinopec Group Company and fellow subsidiaries | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Less: Current portion | (4,361) | (2,014) | |
RMB denominated | Third parties | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Long-term bank loans | 31,025 | 25,644 | |
Corporate bonds (i) | ¥ 20,000 | 36,000 | |
RMB denominated | Third parties | Maximum | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Weighted interest rates on long-term loans | 4.66% | ||
Fixed interest rates on long-term loans | 4.90% | ||
RMB denominated | Third parties | Minimum | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Weighted interest rates on long-term loans | 1.08% | ||
Fixed interest rates on long-term loans | 3.70% | ||
RMB denominated | Sinopec Group Company and fellow subsidiaries | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Less: Current portion | ¥ (4,361) | (2,014) | |
Loans from Sinopec Group Company and fellow subsidiaries | ¥ 46,877 | 45,334 | |
RMB denominated | Sinopec Group Company and fellow subsidiaries | Maximum | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Weighted interest rates on long-term loans | 4.99% | ||
US Dollar denominated | Third parties | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Long-term bank loans | ¥ 109 | 192 | |
Corporate bonds (i) | ¥ 11,951 | ¥ 17,902 | |
US Dollar denominated | Third parties | Maximum | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Weighted interest rates on long-term loans | 4.29% | ||
Fixed interest rates on long-term loans | 4.25% | ||
US Dollar denominated | Third parties | Minimum | |||
Disclosure of detailed information about long-term debts and loans [line items] | |||
Weighted interest rates on long-term loans | 1.55% | ||
Fixed interest rates on long-term loans | 3.13% |
TRADE ACCOUNTS AND BILLS PAYA_3
TRADE ACCOUNTS AND BILLS PAYABLE (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of trade accounts and bills payable [line items] | ||
Trade accounts payable | ¥ 186,341 | ¥ 200,073 |
Bills payable | 6,416 | 6,462 |
Trade accounts and bills payable measured at amortized cost | 192,757 | 206,535 |
Sinopec Group Company and fellow subsidiaries | ||
Disclosure of trade accounts and bills payable [line items] | ||
Trade accounts payable | 9,142 | 13,350 |
Associates and joint ventures | ||
Disclosure of trade accounts and bills payable [line items] | ||
Trade accounts payable | 6,381 | 9,499 |
Third parties | ||
Disclosure of trade accounts and bills payable [line items] | ||
Trade accounts payable | ¥ 170,818 | ¥ 177,224 |
CONTRACT LIABILITIES (Details)
CONTRACT LIABILITIES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
CONTRACT LIABILITIES [abstract] | ||
Contract liabilities | ¥ 124,793 | ¥ 120,734 |
Contract liabilities recognized as revenue | ¥ 119,138 |
OTHER PAYABLES (Details)
OTHER PAYABLES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
OTHER PAYABLES | ||
Salaries and welfare payable | ¥ 7,312 | ¥ 7,162 |
Interest payable | 634 | 723 |
Payables for constructions | 54,992 | 60,010 |
Other payables | 22,852 | 29,028 |
Financial liabilities carried at amortized costs | 85,790 | 96,923 |
Taxes other than income tax | 80,361 | 58,925 |
Receipts in advance (Note 1(a)) | 120,734 | |
Other payables, total | ¥ 166,151 | ¥ 276,582 |
PROVISIONS (Details)
PROVISIONS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
PROVISIONS [abstract] | |||
Balance at beginning of year | ¥ 39,407 | ¥ 36,918 | ¥ 33,115 |
Provision for the year | 1,567 | 1,627 | 3,420 |
Accretion expenses | 1,438 | 1,501 | 1,057 |
Utilized for the year | (598) | (467) | (843) |
Exchange adjustments | 193 | (172) | 169 |
Balance at end of year | ¥ 42,007 | ¥ 39,407 | ¥ 36,918 |
SHARE CAPITAL - REGISTERED, ISS
SHARE CAPITAL - REGISTERED, ISSUED AND FULLY PAID (Details) - CNY (¥) ¥ / shares in Units, ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 25, 2000 | Feb. 25, 2000 |
Disclosure of classes of share capital [line items] | ||||
Par value per share | ¥ 1 | ¥ 1 | ||
Particulars of issued and paid up capital | ¥ 121,071 | ¥ 121,071 | ||
A shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares registered, issued and fully paid | 95,557,771,046 | 95,557,771,046 | ||
Par value per share | ¥ 1 | ¥ 1 | ||
Particulars of issued and paid up capital | ¥ 95,558 | ¥ 95,558 | ||
H shares | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares registered, issued and fully paid | 25,513,438,600 | 25,513,438,600 | ||
Par value per share | ¥ 1 | ¥ 1 | ||
Particulars of issued and paid up capital | ¥ 25,513 | ¥ 25,513 |
SHARE CAPITAL - REGISTERED, I_2
SHARE CAPITAL - REGISTERED, ISSUED AND FULLY PAID - NARRATIVE (Details) | 2 Months Ended | 7 Months Ended | 10 Months Ended | |||||||||||||||
Feb. 14, 2013HKD ($) | Jul. 31, 2001CNY (¥)¥ / sharesshares | Oct. 31, 2000HKD ($) | Oct. 31, 2000USD ($) | Dec. 31, 2018¥ / shares | Dec. 31, 2017¥ / shares | Dec. 31, 2015¥ / sharesshares | Dec. 31, 2014¥ / sharesshares | Dec. 31, 2013¥ / sharesshares | Jun. 30, 2013shares | May 29, 2013shares | Feb. 14, 2013¥ / sharesshares | Dec. 31, 2012¥ / sharesshares | Dec. 31, 2011¥ / sharesshares | Dec. 31, 2010item¥ / sharesshares | Oct. 31, 2000¥ / sharesshares | Jul. 25, 2000¥ / sharesshares | Feb. 25, 2000¥ / sharesshares | |
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 68,800,000,000 | |||||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | ¥ 1 | ||||||||||||||||
Conversion from retained earnings and share premium | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares converted from retained earnings pursuant to shareholders' approval | 2 | |||||||||||||||||
Number of share premium transfer to share capital | 1 | |||||||||||||||||
Outside PRC | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | |||||||||||||||||
A shares | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | ¥ 1 | ||||||||||||||||
A shares | Global initial public offering | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 2,800,000,000 | |||||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | |||||||||||||||||
Share price | ¥ | ¥ 4.22 | |||||||||||||||||
A shares | Exercise of warrants | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | |||||||||||||||||
A shares | Exercise of warrants | Bonds with Warrants | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 88,774 | |||||||||||||||||
Number of warrants entitled to bonds with warrants | item | 188,292 | |||||||||||||||||
A shares | Conversion of convertible instruments | 2011 Convertible Bonds | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 2,790,814,006 | 1,715,081,853 | 114,076 | 117,724,450 | 34,662 | |||||||||||||
Par value per share | ¥ / shares | ¥ 1 | ¥ 1 | ¥ 1 | ¥ 1 | ¥ 1 | |||||||||||||
A shares | Conversion from retained earnings and share premium | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 21,011,962,225 | |||||||||||||||||
H shares (including American Depositary Shares) | Outside PRC | Global initial public offering | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 15,102,439,000 | |||||||||||||||||
H shares | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | ¥ 1 | ||||||||||||||||
H shares | The Placing | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 2,845,234,000 | |||||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | |||||||||||||||||
Share price | $ | $ 8.45 | |||||||||||||||||
Aggregate gross proceeds from Placing | $ | 24,042,227,300 | |||||||||||||||||
Aggregate net proceeds from Placing | $ | $ 23,970,100,618 | |||||||||||||||||
H shares | Conversion from retained earnings and share premium | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 5,887,716,600 | |||||||||||||||||
H shares | Outside PRC | Global initial public offering | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 12,521,864,000 | |||||||||||||||||
Share price | $ | $ 1.59 | |||||||||||||||||
H shares | Outside PRC | Global initial public offering | Sinopec Group Company | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 1,678,049,000 | |||||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | |||||||||||||||||
American Depositary Shares | Global initial public offering | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of H shares each American Depositary Share represents | 100 | |||||||||||||||||
American Depositary Shares | Outside PRC | Global initial public offering | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 25,805,750 | |||||||||||||||||
Share price | $ | $ 20.645 | |||||||||||||||||
Maximum | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares authorised | 88,300,000,000 | |||||||||||||||||
Maximum | Outside PRC | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 19,500,000,000 | |||||||||||||||||
Maximum | Outside PRC | Sinopec Group Company | ||||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||||
Number of shares issued | 3,500,000,000 |
SHARE CAPITAL - CAPITAL MANAGEM
SHARE CAPITAL - CAPITAL MANAGEMENT - NARRATIVE (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
SHARE CAPITAL [abstract] | ||
Debt-to-capital ratio | 11.50% | 12.00% |
Liability-to-asset ratio | 46.20% | 46.50% |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - OPERATING LEASE COMMITMENTS (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Future minimum lease payments | ¥ 352,794 | ¥ 257,122 |
Within one year | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Future minimum lease payments | 15,625 | 11,114 |
Between one and two years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Future minimum lease payments | 14,668 | 11,492 |
Between two and three years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Future minimum lease payments | 13,986 | 10,730 |
Between three and four years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Future minimum lease payments | 13,734 | 10,552 |
Between four and five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Future minimum lease payments | 13,494 | 10,428 |
Later than five years | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Future minimum lease payments | ¥ 281,287 | ¥ 202,806 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - CAPITAL COMMITMENTS (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Capital commitments [abstract] | ||
Authorized and contracted for (i) | ¥ 141,045 | ¥ 120,386 |
Authorized but not contracted for | 54,392 | 57,997 |
Total capital commitments | 195,437 | 178,383 |
Investment commitments | ¥ 5,553 | ¥ 3,364 |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES - EXPLORATION AND PRODUCTION LICENSES (Details) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018CNY (¥)item | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Licences | |||
Disclosure of exploration and production licenses [line items] | |||
Payments incurred of exploration licenses fee and production right usage fees | ¥ | ¥ 231 | ¥ 308 | ¥ 333 |
Exploration licenses | |||
Disclosure of exploration and production licenses [line items] | |||
Frequency of renewal | item | 2 | ||
Term of renewal | 2 years | ||
Maximum | Exploration licenses | |||
Disclosure of exploration and production licenses [line items] | |||
Term of licenses | 7 years | ||
Number of days prior to expiration of original term | 30 days | ||
Maximum | Production licenses | |||
Disclosure of exploration and production licenses [line items] | |||
Number of days prior to expiration of original term | 30 days | ||
Maximum | Production licenses | Licenses with special dispensation | |||
Disclosure of exploration and production licenses [line items] | |||
Term of licenses | 80 years | ||
Maximum | Production licenses | Licenses without special dispensation | |||
Disclosure of exploration and production licenses [line items] | |||
Term of licenses | 30 years |
COMMITMENTS AND CONTINGENT LI_6
COMMITMENTS AND CONTINGENT LIABILITIES - ESTIMATED FUTURE ANNUAL PAYMENTS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of estimated future annual payments [line items] | ||
Estimated future annual payments | ¥ 1,400 | ¥ 1,258 |
Within one year | ||
Disclosure of estimated future annual payments [line items] | ||
Estimated future annual payments | 380 | 205 |
Between one and two years | ||
Disclosure of estimated future annual payments [line items] | ||
Estimated future annual payments | 79 | 83 |
Between two and three years | ||
Disclosure of estimated future annual payments [line items] | ||
Estimated future annual payments | 33 | 32 |
Between three and four years | ||
Disclosure of estimated future annual payments [line items] | ||
Estimated future annual payments | 28 | 28 |
Between four and five years | ||
Disclosure of estimated future annual payments [line items] | ||
Estimated future annual payments | 28 | 28 |
Later than five years | ||
Disclosure of estimated future annual payments [line items] | ||
Estimated future annual payments | ¥ 852 | ¥ 882 |
COMMITMENTS AND CONTINGENT LI_7
COMMITMENTS AND CONTINGENT LIABILITIES - CONTINGENT LIABILITIES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | ¥ 24,398 | ¥ 24,192 |
Liability accrued for a loss under guarantee | 0 | |
Joint ventures | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | 5,033 | 940 |
Associates | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | 12,168 | 13,520 |
Zhongtian Synergetic Energy | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | 12,168 | 13,520 |
Guarantee in respect to standby credit facilities granted by banks | 17,050 | |
Others | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | ¥ 7,197 | ¥ 9,732 |
COMMITMENTS AND CONTINGENT LI_8
COMMITMENTS AND CONTINGENT LIABILITIES - ENVIRONMENTAL CONTINGENCIES - NARRATIVES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
COMMITMENTS AND CONTINGENT LIABILITIES [abstract] | |||
Pollutant discharge fees | ¥ 7,940 | ¥ 7,851 | ¥ 6,358 |
BUSINESS COMBINATION - ACQUISIT
BUSINESS COMBINATION - ACQUISITION OF SHANGHAI SECCO (Details) - CNY (¥) ¥ in Millions | Oct. 26, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Oct. 25, 2017 |
Disclosure of detailed information about business combination [line items] | |||||
Interests held after the transaction | 100.00% | ||||
Purchase consideration | |||||
Acquisition date | Oct. 26, 2017 | ||||
Assets and liabilities recognized as a result of the acquisition | |||||
Goodwill (Note 20) | ¥ 8,634 | ¥ 8,634 | ¥ 8,676 | ||
Gain on remeasurement of interests | 3,941 | ||||
Shanghai SECCO | |||||
Disclosure of detailed information about business combination [line items] | |||||
Equity interest held before the acquisition | 30.00% | ||||
Purchase consideration | |||||
Cash consideration for the purchase of 50% equity interest acquired | ¥ 10,135 | ||||
Acquisition-date fair value of the 50% equity interest held before the acquisition | 10,135 | ||||
Total purchase consideration | 20,270 | ||||
Assets and liabilities recognized as a result of the acquisition | |||||
Cash and cash equivalents | 5,653 | ||||
Trade accounts receivable, net | 538 | ||||
Bills receivable | 641 | ||||
Inventories | 1,702 | ||||
Prepaid expenses and other current assets | 2,130 | ||||
Total current assets | 10,664 | ||||
Property, plant and equipment, net | 9,587 | ||||
Construction in progress | 231 | ||||
Deferred tax assets | 11 | ||||
Lease prepayments | 1,920 | ||||
Long-term prepayments and other assets | 1,134 | ||||
Total non-current assets | 12,883 | ||||
Total assets | 23,547 | ||||
Trade accounts payables | (2,092) | ||||
Accrued expenses and other payables | (1,517) | ||||
Income tax payable | (423) | ||||
Total current liabilities | (4,032) | ||||
Deferred tax liabilities (Note 23) | (1,786) | ||||
Net assets acquired | 17,729 | ||||
Goodwill (Note 20) | ¥ 2,541 | ||||
Revenue contributed since Acquisition date | 5,222 | ||||
Net profit contributed since Acquisition date | ¥ 726 | ||||
Consolidated pro-forma revenue | 2,365,632 | ||||
Consolidated pro-forma profit | ¥ 74,930 | ||||
Gaoqiao Petrochemical Company Limited | Shanghai SECCO | BP Chemicals East China Investment Limited | |||||
Disclosure of detailed information about business combination [line items] | |||||
Equity interest acquired | 50.00% | ||||
Subsidiary | Shanghai SECCO | |||||
Disclosure of detailed information about business combination [line items] | |||||
Equity interest held before the acquisition | 20.00% |
BUSINESS COMBINATION - ACQUIS_2
BUSINESS COMBINATION - ACQUISITION OF GAOQIAO BRANCH OF SAMC (Details) - CNY (¥) ¥ in Millions | Jun. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | |||
Non-controlling interests | ¥ 139,251 | ¥ 126,770 | |
Gaoqiao Petrochemical Company Limited | |||
Disclosure of detailed information about business combination [line items] | |||
Proportion of ownership interests held by non-controlling interests | 45.00% | ||
Sinopec Assets Management Corporation ("SAMC") | Gaoqiao Petrochemical Company Limited | |||
Disclosure of detailed information about business combination [line items] | |||
Non-controlling interests | ¥ 2,137 | ||
Gaoqiao Petrochemical Company Limited | |||
Disclosure of detailed information about business combination [line items] | |||
Proportion of voting rights held in subsidiary | 55.00% | ||
Gaoqiao Petrochemical Company Limited | Sinopec Assets Management Corporation ("SAMC") | |||
Disclosure of detailed information about business combination [line items] | |||
Investments in subsidiaries | ¥ 100 | ||
Proportion of ownership interests held by non-controlling interests | 45.00% |
RELATED PARTY TRANSACTIONS - TR
RELATED PARTY TRANSACTIONS - TRANSACTIONS WITH SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [line items] | |||
Interest income | ¥ 7,726 | ¥ 5,254 | ¥ 3,218 |
Interest expense | 7,321 | 7,146 | 9,219 |
Guarantees | 24,398 | 24,192 | |
Sinopec Group Company and fellow subsidiaries, associates and joint ventures | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods | 272,789 | 244,211 | 194,179 |
Purchases | 192,224 | 165,993 | 118,242 |
Transportation and storage | 7,319 | 7,716 | 1,333 |
Exploration and development services | 23,489 | 21,210 | 27,201 |
Production related services | 28,472 | 20,824 | 10,816 |
Ancillary and social services | 6,664 | 6,653 | 6,584 |
Operating lease charges for land | 7,765 | 8,015 | 10,474 |
Operating lease charges for buildings | 521 | 510 | 449 |
Other operating lease charges | 869 | 626 | 456 |
Agency commission income | 113 | 127 | 129 |
Interest income | 848 | 807 | 209 |
Interest expense | 1,110 | 554 | 996 |
Net deposits (placed with)/withdrawn from related parties | 6,457 | (7,441) | (21,770) |
Net funds (repaid to)/obtained from related parties | 31,684 | 19,661 | ¥ (19,318) |
Guarantees | 0 | 0 | |
Finance companies | |||
Disclosure of transactions between related parties [line items] | |||
Deposits placed with related parties | ¥ 41,057 | ¥ 47,514 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - TRANSACTIONS WITH SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES - NARRATIVE (Details) m² in Millions, ¥ in Billions | Jan. 01, 2000Y | Dec. 31, 2018CNY (¥)m² | Dec. 31, 2000 |
Disclosure of transactions between related parties [line items] | |||
Land area leased (in square meters) | m² | 410 | ||
Land lease fee | ¥ | ¥ 14 | ||
Land | |||
Disclosure of transactions between related parties [line items] | |||
Every number of years to renegotiate the rental amount for land | Y | 3 | ||
Buildings | |||
Disclosure of transactions between related parties [line items] | |||
Lease term | 20 years | ||
Minimum | Mutual Provision Agreement | |||
Disclosure of transactions between related parties [line items] | |||
Terms to terminate agreements | 6 months | ||
Minimum | Land | |||
Disclosure of transactions between related parties [line items] | |||
Lease term | 40 years | ||
Maximum | Mutual Provision Agreement | |||
Disclosure of transactions between related parties [line items] | |||
Percentage of profit margin of services | 6.00% | ||
Maximum | Land | |||
Disclosure of transactions between related parties [line items] | |||
Lease term | 50 years |
RELATED PARTY TRANSACTIONS - _3
RELATED PARTY TRANSACTIONS - TRANSACTIONS WITH SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES - AMOUNTS DUE FROM/TO RELATED PARTIES - NARRATIVE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2000 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Disclosure of transactions between related parties [line items] | ||||
Trade accounts receivable and bills receivable | ¥ 64,879 | ¥ 84,701 | ||
Prepaid expenses and other current assets | 54,023 | 40,929 | ||
Long-term prepayments and other assets | 91,408 | 81,982 | ||
Contract liabilities | 124,793 | ¥ 120,734 | ||
Other payables | 166,151 | 276,582 | ||
Other long-term liabilities | 28,400 | 17,620 | ||
Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries | 42,516 | 43,320 | ||
Sinopec Group Company and fellow subsidiaries, associates and joint ventures | ||||
Disclosure of transactions between related parties [line items] | ||||
Trade accounts receivable and bills receivable | 7,555 | 13,174 | ||
Prepaid expenses and other current assets | 7,665 | 5,633 | ||
Long-term prepayments and other assets | 23,482 | 20,726 | ||
Total | 38,702 | 39,533 | ||
Trade accounts payable and bills payable | 17,530 | 24,104 | ||
Contract liabilities | 3,273 | |||
Other payables | 18,160 | 20,990 | ||
Other long-term liabilities | 12,470 | 10,165 | ||
Short-term loans and current portion of long-term loans from Sinopec Group Company and fellow subsidiaries | 31,665 | 25,311 | ||
Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries | 42,516 | 43,320 | ||
Total | ¥ 125,614 | ¥ 123,890 | ||
Sinopec Group Company | ||||
Disclosure of transactions between related parties [line items] | ||||
Maturity period of interest-free loan | P20Y | |||
Interest-free loan | ¥ 35,560 |
RELATED PARTY TRANSACTIONS - _4
RELATED PARTY TRANSACTIONS - TRANSACTIONS WITH SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES - KEY MANAGEMENT PERSONNEL EMOLUMENTS (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS [abstract] | |||
Short-term employee benefits | ¥ 5,745 | ¥ 5,344 | ¥ 5,648 |
Retirement scheme contributions | 351 | 424 | 499 |
Key management personnel compensation | ¥ 6,096 | ¥ 5,768 | ¥ 6,147 |
EMPLOYEE BENEFITS PLAN (Details
EMPLOYEE BENEFITS PLAN (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of contribution retirement plan [line items] | |||
Contributions | ¥ 9,296 | ¥ 8,981 | ¥ 8,385 |
Maximum | |||
Disclosure of contribution retirement plan [line items] | |||
Percentage of salaries, bonuses and certain allowances | 13.00% | ||
Minimum | |||
Disclosure of contribution retirement plan [line items] | |||
Percentage of salaries, bonuses and certain allowances | 20.00% | ||
Supplementary retirement plan rate | 5.00% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018CNY (¥)segment | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | |
Disclosure of operating segments [line items] | |||
Number of reportable segments | segment | 5 | ||
Sales of goods | ¥ 2,825,613 | ¥ 2,300,470 | ¥ 1,880,190 |
Other operating revenues | 65,566 | 59,723 | 50,721 |
Total operating revenues | 2,891,179 | 2,360,193 | 1,930,911 |
Total segment operating income | 82,264 | 71,470 | 77,193 |
Aggregate share of profits from associates and joint ventures | 13,974 | 16,525 | 9,306 |
Aggregate investment income | 1,871 | 262 | 263 |
Net finance costs | 1,001 | (1,560) | (6,611) |
Earnings before income tax | 99,110 | 86,697 | 80,151 |
Total segment assets | 1,220,347 | 1,254,771 | 1,195,341 |
Interest in associates and joint ventures | 145,721 | 131,087 | 116,812 |
Available-for-sale financial assets | 1,676 | 11,408 | |
Financial assets at fair value through other comprehensive income | 1,450 | ||
Deferred tax assets | 21,694 | 15,131 | 7,214 |
Cash and cash equivalents, time deposits with financial institutions | 167,015 | 165,004 | 142,497 |
Other unallocated assets | 36,081 | 27,835 | 25,337 |
Total assets | 1,592,308 | 1,595,504 | 1,498,609 |
Total segment liabilities | 539,144 | 518,172 | 440,569 |
Short-term debts | 29,462 | 55,338 | 56,239 |
Income tax payable | 6,699 | 13,015 | 6,051 |
Long-term debts | 51,011 | 55,804 | 72,674 |
Loans from Sinopec Group Company and fellow subsidiaries | 74,181 | 68,631 | 63,352 |
Deferred tax liabilities | 5,948 | 6,466 | 7,661 |
Other unallocated liabilities | 29,328 | 25,188 | 20,828 |
Total liabilities | 735,773 | 742,614 | 667,374 |
Capital expenditure | 117,976 | 99,384 | 76,456 |
Depreciation, depletion and amortization | 109,967 | 115,310 | 108,425 |
Impairment losses on long-lived assets | 6,281 | 21,258 | 16,425 |
Non-current assets | 1,040,560 | 1,027,901 | 1,046,096 |
Mainland China | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 2,119,580 | 1,758,365 | 1,488,117 |
Non-current assets | 989,668 | 979,329 | 1,000,209 |
Singapore | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 395,129 | 269,349 | 152,068 |
Others [member] | |||
Disclosure of operating segments [line items] | |||
Total operating revenues | 376,470 | 332,479 | 290,726 |
Non-current assets | 50,892 | 48,572 | 45,887 |
Elimination of inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Total segment operating income | (3,634) | (1,655) | 1,581 |
Elimination of inter-segment sales | Inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | (1,934,372) | (1,445,955) | (1,168,732) |
Exploration and production | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 189,453 | 146,972 | 106,397 |
Other operating revenues | 10,738 | 10,533 | 9,542 |
Total segment operating income | (10,107) | (45,944) | (36,641) |
Aggregate share of profits from associates and joint ventures | 2,598 | 1,449 | (1,203) |
Aggregate investment income | (3) | 40 | 24 |
Total segment assets | 321,686 | 343,404 | 402,476 |
Total segment liabilities | 94,170 | 99,568 | 95,944 |
Capital expenditure | 42,155 | 31,344 | 32,187 |
Depreciation, depletion and amortization | 60,331 | 66,843 | 61,929 |
Impairment losses on long-lived assets | 4,274 | 13,556 | 11,605 |
Exploration and production | External sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 93,499 | 69,168 | 47,443 |
Exploration and production | Inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 95,954 | 77,804 | 58,954 |
Refining segment | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,258,018 | 1,006,749 | 850,300 |
Other operating revenues | 5,389 | 5,104 | 5,486 |
Total segment operating income | 54,827 | 65,007 | 56,265 |
Aggregate share of profits from associates and joint ventures | 109 | 989 | 1,075 |
Aggregate investment income | 315 | 28 | (4) |
Total segment assets | 271,356 | 273,123 | 260,903 |
Total segment liabilities | 103,809 | 101,429 | 82,170 |
Capital expenditure | 27,908 | 21,075 | 14,347 |
Depreciation, depletion and amortization | 18,164 | 18,408 | 17,209 |
Impairment losses on long-lived assets | 353 | 1,894 | 1,655 |
Refining segment | External sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 148,930 | 132,478 | 102,983 |
Refining segment | Inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,109,088 | 874,271 | 747,317 |
Marketing and distribution | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,414,213 | 1,195,864 | 1,030,853 |
Other operating revenues | 32,424 | 28,333 | 22,004 |
Total segment operating income | 23,464 | 31,569 | 32,153 |
Aggregate share of profits from associates and joint ventures | 3,155 | 2,945 | 2,362 |
Aggregate investment income | 43 | 90 | 90 |
Total segment assets | 317,641 | 309,727 | 292,328 |
Total segment liabilities | 159,536 | 164,101 | 133,303 |
Capital expenditure | 21,429 | 21,539 | 18,493 |
Depreciation, depletion and amortization | 16,296 | 15,463 | 14,540 |
Impairment losses on long-lived assets | 264 | 675 | 267 |
Marketing and distribution | External sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,408,989 | 1,191,902 | 1,027,373 |
Marketing and distribution | Inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 5,224 | 3,962 | 3,480 |
Chemicals segment | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 531,241 | 423,429 | 322,903 |
Other operating revenues | 15,492 | 14,314 | 12,211 |
Total segment operating income | 27,007 | 26,977 | 20,623 |
Aggregate share of profits from associates and joint ventures | 6,298 | 9,621 | 5,696 |
Aggregate investment income | 596 | 86 | 119 |
Total segment assets | 156,865 | 158,472 | 144,371 |
Total segment liabilities | 37,413 | 35,293 | 32,072 |
Capital expenditure | 19,578 | 23,028 | 8,849 |
Depreciation, depletion and amortization | 13,379 | 12,873 | 12,654 |
Impairment losses on long-lived assets | 1,374 | 4,922 | 2,898 |
Chemicals segment | External sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 457,406 | 373,814 | 284,289 |
Chemicals segment | Inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 73,835 | 49,615 | 38,614 |
Corporate and others | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,367,060 | 973,411 | 738,469 |
Other operating revenues | 1,523 | 1,439 | 1,478 |
Total segment operating income | (9,293) | (4,484) | 3,212 |
Aggregate share of profits from associates and joint ventures | 1,814 | 1,521 | 1,376 |
Aggregate investment income | 920 | 18 | 34 |
Total segment assets | 152,799 | 170,045 | 95,263 |
Total segment liabilities | 144,216 | 117,781 | 97,080 |
Capital expenditure | 6,906 | 2,398 | 2,580 |
Depreciation, depletion and amortization | 1,797 | 1,723 | 2,093 |
Impairment losses on long-lived assets | 16 | 211 | 211 |
Corporate and others | External sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 716,789 | 533,108 | 418,102 |
Corporate and others | Inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | ¥ 650,271 | ¥ 440,303 | ¥ 320,367 |
PRINCIPAL SUBSIDIARIES (Details
PRINCIPAL SUBSIDIARIES (Details) ¥ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018HKD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 121,071 | ¥ 121,071 | ||
SIPL | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 8,000 | |||
Interests held by the Company | 100.00% | |||
Sinopec Great Wall Energy & Chemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 22,761 | |||
Interests held by the Company | 100.00% | |||
Sinopec Yangzi Petrochemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 15,651 | |||
Interests held by the Company | 100.00% | |||
Sinopec Pipeline Storage & Transportation Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 12,000 | |||
Interests held by the Company | 100.00% | |||
Sinopec Yizheng Chemical Fibre Limited Liability Company | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 4,000 | |||
Interests held by the Company | 100.00% | |||
Sinopec Lubricant Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 3,374 | |||
Interests held by the Company | 100.00% | |||
Sinopec Qingdao Petrochemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 1,595 | |||
Interests held by the Company | 100.00% | |||
Sinopec Chemical Sales Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 1,000 | |||
Interests held by the Company | 100.00% | |||
China International United Petroleum and Chemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 3,000 | |||
Interests held by the Company | 100.00% | |||
SOIH | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | $ | $ 1,662 | |||
Interests held by the Company | 100.00% | |||
Sinopec Catalyst Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 1,500 | |||
Interests held by the Company | 100.00% | |||
China Petrochemical International Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 1,400 | |||
Interests held by the Company | 100.00% | |||
Sinopec Beihai Refining and Chemical Limited Liability Company | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 5,294 | |||
Interests held by the Company | 98.98% | |||
Interests held by non-controlling interests | 1.02% | |||
Sinopec Qingdao Refining and Chemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 5,000 | |||
Interests held by the Company | 85.00% | |||
Interests held by non-controlling interests | 15.00% | |||
Sinopec Hainan Refining and Chemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 3,986 | |||
Interests held by the Company | 75.00% | |||
Interests held by non-controlling interests | 25.00% | |||
Marketing Company | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 28,403 | |||
Interests held by the Company | 70.42% | |||
Interests held by non-controlling interests | 29.58% | |||
Shanghai SECCO | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 7,801 | |||
Interests held by the Company | 67.60% | |||
Interests held by non-controlling interests | 32.40% | |||
Zhonghan Wuhan | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 6,270 | |||
Interests held by the Company | 65.00% | |||
Interests held by non-controlling interests | 35.00% | |||
Sinopec Kantons | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | $ | $ 248 | |||
Interests held by the Company | 60.33% | |||
Interests held by non-controlling interests | 39.67% | |||
Gaoqiao Petrochemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 10,000 | |||
Interests held by the Company | 55.00% | |||
Interests held by non-controlling interests | 45.00% | |||
Shanghai Petrochemical | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | 10,824 | |||
Interests held by the Company | 50.44% | |||
Interests held by non-controlling interests | 49.56% | |||
Fujian Petrochemical | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 8,140 | |||
Interests held by the Company | 50.00% | |||
Interests held by non-controlling interests | 50.00% |
PRINCIPAL SUBSIDIARIES - SUMMAR
PRINCIPAL SUBSIDIARIES - SUMMARIZED CONSOLIDATED BALANCE SHEET (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of summarized consolidated balance sheet [line items] | |||
Current assets | ¥ 504,120 | ¥ 529,049 | ¥ 529,049 |
Current liabilities | (565,098) | (579,446) | (579,446) |
Non-current assets | 1,088,188 | 1,066,455 | 1,066,455 |
Non-current liabilities | (170,675) | ¥ (163,168) | (163,168) |
Net assets attributable to owners of the Company | 717,284 | 726,120 | |
Net assets attributable to non-controlling interests | 139,251 | 126,770 | |
Marketing Company | |||
Disclosure of summarized consolidated balance sheet [line items] | |||
Current assets | 130,861 | 156,494 | |
Current liabilities | (181,766) | (212,620) | |
Net current (liabilities)/assets | (50,905) | (56,126) | |
Non-current assets | 261,062 | 253,455 | |
Non-current liabilities | (2,086) | (1,774) | |
Net non-current assets | 258,976 | 251,681 | |
Net assets | 208,071 | 195,555 | |
Net assets attributable to owners of the Company | 141,244 | 132,549 | |
Net assets attributable to non-controlling interests | 66,827 | 63,006 | |
SIPL | |||
Disclosure of summarized consolidated balance sheet [line items] | |||
Current assets | 16,731 | 19,555 | |
Current liabilities | (483) | (7,118) | |
Net current (liabilities)/assets | 16,248 | 12,437 | |
Non-current assets | 38,020 | 34,769 | |
Non-current liabilities | (31,050) | (28,523) | |
Net non-current assets | 6,970 | 6,246 | |
Net assets | 23,218 | 18,683 | |
Net assets attributable to owners of the Company | 5,266 | 3,468 | |
Net assets attributable to non-controlling interests | 17,952 | 15,215 | |
Shanghai Petrochemical | |||
Disclosure of summarized consolidated balance sheet [line items] | |||
Current assets | 25,299 | 19,866 | |
Current liabilities | (13,913) | (10,922) | |
Net current (liabilities)/assets | 11,386 | 8,944 | |
Non-current assets | 19,087 | 19,577 | |
Non-current liabilities | (10) | (6) | |
Net non-current assets | 19,077 | 19,571 | |
Net assets | 30,463 | 28,515 | |
Net assets attributable to owners of the Company | 15,295 | 14,253 | |
Net assets attributable to non-controlling interests | 15,168 | 14,262 | |
Fujian Petrochemical | |||
Disclosure of summarized consolidated balance sheet [line items] | |||
Current assets | 816 | 992 | |
Current liabilities | (50) | (376) | |
Net current (liabilities)/assets | 766 | 616 | |
Non-current assets | 11,444 | 9,925 | |
Non-current liabilities | (688) | (681) | |
Net non-current assets | 10,756 | 9,244 | |
Net assets | 11,522 | 9,860 | |
Net assets attributable to owners of the Company | 5,761 | 4,930 | |
Net assets attributable to non-controlling interests | 5,761 | 4,930 | |
Sinopec Kantons | |||
Disclosure of summarized consolidated balance sheet [line items] | |||
Current assets | 1,209 | 1,196 | |
Current liabilities | (3,722) | (2,351) | |
Net current (liabilities)/assets | (2,513) | (1,155) | |
Non-current assets | 12,895 | 13,089 | |
Non-current liabilities | (132) | (2,430) | |
Net non-current assets | 12,763 | 10,659 | |
Net assets | 10,250 | 9,504 | |
Net assets attributable to owners of the Company | 6,165 | 5,716 | |
Net assets attributable to non-controlling interests | 4,085 | 3,788 | |
Shanghai SECCO | |||
Disclosure of summarized consolidated balance sheet [line items] | |||
Current assets | 9,537 | 11,602 | |
Current liabilities | (2,233) | (4,174) | |
Net current (liabilities)/assets | 7,304 | 7,428 | |
Non-current assets | 12,301 | 12,797 | |
Non-current liabilities | (1,698) | (1,740) | |
Net non-current assets | 10,603 | 11,057 | |
Net assets | 17,907 | 18,485 | |
Net assets attributable to owners of the Company | 12,105 | 12,496 | |
Net assets attributable to non-controlling interests | 5,802 | 5,989 | |
Zhonghan Wuhan | |||
Disclosure of summarized consolidated balance sheet [line items] | |||
Current assets | 2,750 | 1,636 | |
Current liabilities | (2,333) | (3,975) | |
Net current (liabilities)/assets | 417 | (2,339) | |
Non-current assets | 12,612 | 13,598 | |
Net non-current assets | 12,612 | 13,598 | |
Net assets | 13,029 | 11,259 | |
Net assets attributable to owners of the Company | 8,469 | 7,318 | |
Net assets attributable to non-controlling interests | ¥ 4,560 | ¥ 3,941 |
PRINCIPAL SUBSIDIARIES - SUMM_2
PRINCIPAL SUBSIDIARIES - SUMMARIZED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | ¥ 2,891,179 | ¥ 2,360,193 | ¥ 1,930,911 |
Net income/(loss) for the year | 78,897 | 70,418 | 59,444 |
Total comprehensive income/(loss) | 72,273 | 66,042 | 65,777 |
Comprehensive income/(loss) attributable to non-controlling interests | 18,273 | 18,279 | 12,053 |
Marketing Company | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 1,443,698 | 1,221,530 | 1,050,294 |
Net income/(loss) for the year | 22,046 | 27,520 | 26,461 |
Total comprehensive income/(loss) | 22,589 | 26,986 | 27,385 |
Comprehensive income/(loss) attributable to non-controlling interests | 7,794 | 9,033 | 9,028 |
Dividends paid to non-controlling interests | 3,964 | 9,544 | 4,932 |
SIPL | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 5,037 | 6,136 | 4,016 |
Net income/(loss) for the year | 3,272 | 1,075 | (4,604) |
Total comprehensive income/(loss) | 4,536 | 396 | (2,481) |
Comprehensive income/(loss) attributable to non-controlling interests | 2,737 | (38) | (3,279) |
Shanghai Petrochemical | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 107,689 | 91,962 | 77,843 |
Net income/(loss) for the year | 5,336 | 6,154 | 5,981 |
Total comprehensive income/(loss) | 5,336 | 6,153 | 6,000 |
Comprehensive income/(loss) attributable to non-controlling interests | 2,645 | 3,052 | 2,964 |
Dividends paid to non-controlling interests | 1,616 | 1,344 | 563 |
Fujian Petrochemical | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 5,261 | 6,068 | 4,968 |
Net income/(loss) for the year | 1,576 | 2,726 | 2,513 |
Total comprehensive income/(loss) | 1,576 | 2,726 | 2,513 |
Comprehensive income/(loss) attributable to non-controlling interests | 788 | 1,363 | 1,256 |
Dividends paid to non-controlling interests | 600 | 625 | |
Sinopec Kantons | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 1,398 | 1,498 | 1,512 |
Net income/(loss) for the year | 1,065 | 1,046 | 860 |
Total comprehensive income/(loss) | 1,067 | 1,146 | 879 |
Comprehensive income/(loss) attributable to non-controlling interests | 399 | 433 | 349 |
Dividends paid to non-controlling interests | 104 | 70 | 51 |
Shanghai SECCO | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 26,320 | 5,222 | |
Net income/(loss) for the year | 3,099 | 726 | |
Total comprehensive income/(loss) | 3,099 | 726 | |
Comprehensive income/(loss) attributable to non-controlling interests | 1,004 | 235 | |
Dividends paid to non-controlling interests | 1,191 | ||
Zhonghan Wuhan | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 17,134 | 16,139 | 11,703 |
Net income/(loss) for the year | 1,879 | 2,730 | 1,558 |
Total comprehensive income/(loss) | 1,879 | 2,730 | 1,558 |
Comprehensive income/(loss) attributable to non-controlling interests | ¥ 658 | ¥ 956 | ¥ 545 |
PRINCIPAL SUBSIDIARIES - SUMM_3
PRINCIPAL SUBSIDIARIES - SUMMARIZED CONSOLIDATED STATEMENT OF CASH FLOWS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | ¥ 175,868 | ¥ 190,935 | ¥ 214,543 |
Net cash (used in)/generated from investing activities | (66,422) | (145,323) | (66,217) |
Net cash (used in)/generated from financing activities | (111,260) | (56,509) | (93,047) |
Net increase/(decrease) in cash and cash equivalents | (1,814) | (10,897) | 55,279 |
Balance at beginning of period | 113,218 | 124,468 | 68,933 |
Effect of foreign currency exchange rate changes | 518 | (353) | 256 |
Balance at end of period | 111,922 | 113,218 | 124,468 |
Marketing Company | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 24,825 | 51,038 | 50,840 |
Net cash (used in)/generated from investing activities | 8,339 | (35,738) | (31,573) |
Net cash (used in)/generated from financing activities | (32,084) | (16,499) | (20,424) |
Net increase/(decrease) in cash and cash equivalents | 1,080 | (1,199) | (1,157) |
Balance at beginning of period | 12,921 | 14,373 | 14,914 |
Effect of foreign currency exchange rate changes | 141 | (253) | 616 |
Balance at end of period | 14,142 | 12,921 | 14,373 |
SIPL | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 3,467 | 2,758 | 2,576 |
Net cash (used in)/generated from investing activities | 4,096 | (2,211) | 2,729 |
Net cash (used in)/generated from financing activities | (5,419) | 243 | (4,414) |
Net increase/(decrease) in cash and cash equivalents | 2,144 | 790 | 891 |
Balance at beginning of period | 3,605 | 3,045 | 2,042 |
Effect of foreign currency exchange rate changes | 244 | (230) | 112 |
Balance at end of period | 5,993 | 3,605 | 3,045 |
Shanghai Petrochemical | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 6,659 | 7,061 | 7,182 |
Net cash (used in)/generated from investing activities | (1,928) | (2,401) | (190) |
Net cash (used in)/generated from financing activities | (3,507) | (2,590) | (2,637) |
Net increase/(decrease) in cash and cash equivalents | 1,224 | 2,070 | 4,355 |
Balance at beginning of period | 7,504 | 5,441 | 1,077 |
Effect of foreign currency exchange rate changes | 14 | (7) | 9 |
Balance at end of period | 8,742 | 7,504 | 5,441 |
Fujian Petrochemical | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 38 | (558) | 617 |
Net cash (used in)/generated from investing activities | (215) | 225 | 54 |
Net cash (used in)/generated from financing activities | 43 | (158) | (55) |
Net increase/(decrease) in cash and cash equivalents | (134) | (491) | 616 |
Balance at beginning of period | 226 | 717 | 101 |
Balance at end of period | 92 | 226 | 717 |
Sinopec Kantons | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 738 | 968 | 505 |
Net cash (used in)/generated from investing activities | 648 | 193 | 261 |
Net cash (used in)/generated from financing activities | (1,551) | (1,093) | (1,338) |
Net increase/(decrease) in cash and cash equivalents | (165) | 68 | (572) |
Balance at beginning of period | 343 | 289 | 886 |
Effect of foreign currency exchange rate changes | 20 | (14) | (25) |
Balance at end of period | 198 | 343 | 289 |
Shanghai SECCO | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 3,766 | 1,639 | |
Net cash (used in)/generated from investing activities | (480) | 5,567 | |
Net cash (used in)/generated from financing activities | (3,676) | ||
Net increase/(decrease) in cash and cash equivalents | (390) | 7,206 | |
Balance at beginning of period | 7,205 | ||
Effect of foreign currency exchange rate changes | 2 | (1) | |
Balance at end of period | 6,817 | 7,205 | |
Zhonghan Wuhan | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 3,308 | 2,976 | 3,636 |
Net cash (used in)/generated from investing activities | (3,099) | (2,415) | (3,080) |
Net cash (used in)/generated from financing activities | 525 | (631) | (682) |
Net increase/(decrease) in cash and cash equivalents | 734 | (70) | (126) |
Balance at beginning of period | 64 | 134 | 260 |
Balance at end of period | ¥ 798 | ¥ 64 | ¥ 134 |
FINANCIAL RISK MANAGEMENT AND_3
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - CREDIT RISK (Details) | 12 Months Ended |
Dec. 31, 2018customer | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES [abstract] | |
Number of single customer accounted for greater than ten percent of total accounts receivable | 0 |
Percentage of total accounts receivable | 10.00% |
Basis period of trade accounts receivables expected loss rates | 36 months |
Basis period of other receivables expected loss rates | 12 months |
FINANCIAL RISK MANAGEMENT AND_4
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - LIQUIDITY RISK - Narrative (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES [abstract] | ||
Borrowings on unsecured basis due to standby credit facilities | ¥ 387,748 | ¥ 361,852 |
Weighted average interest rate per annum | 3.87% | 3.40% |
Outstanding borrowings under PRC financial institutions | ¥ 21,236 | ¥ 56,567 |
FINANCIAL RISK MANAGEMENT AND_5
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - LIQUIDITY RISK (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | |||
Short-term debts | ¥ 29,462 | ¥ 55,338 | |
Long-term debts | 51,011 | 55,804 | ¥ 72,674 |
Loans from Sinopec Group Company and fellow subsidiaries | 74,181 | 68,631 | ¥ 63,352 |
Derivative financial instruments | 13,571 | 2,665 | |
Trade accounts payable and bills payable | 192,757 | 206,535 | |
Other payables | 85,790 | 96,923 | |
Financial liabilities with contractual maturities | 446,772 | 485,896 | |
Short-term debts, undiscounted cash flows | 30,123 | 56,562 | |
Long-term debts, undiscounted cash flows | 61,809 | 66,202 | |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 75,207 | 68,950 | |
Derivative financial liabilities, undiscounted cash flows | 13,571 | 2,665 | |
Trade accounts payable and bills payable, undiscounted cash flow | 192,757 | 206,535 | |
Other payables, undiscounted cash flow | 85,790 | 96,923 | |
Total contractual undiscounted cash flows | 459,257 | 497,837 | |
Within one year | |||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | |||
Short-term debts, undiscounted cash flows | 30,123 | 56,562 | |
Long-term debts, undiscounted cash flows | 1,889 | 2,166 | |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 32,127 | 25,504 | |
Derivative financial liabilities, undiscounted cash flows | 13,571 | 2,665 | |
Trade accounts payable and bills payable, undiscounted cash flow | 192,757 | 206,535 | |
Other payables, undiscounted cash flow | 85,790 | 96,923 | |
Total contractual undiscounted cash flows | 356,257 | 390,355 | |
Between one and two years | |||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | |||
Long-term debts, undiscounted cash flows | 16,938 | 14,477 | |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 37,977 | 4,439 | |
Total contractual undiscounted cash flows | 54,915 | 18,916 | |
More than 2 years but less than 5 years | |||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | |||
Long-term debts, undiscounted cash flows | 27,190 | 32,316 | |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 3,741 | 39,007 | |
Total contractual undiscounted cash flows | 30,931 | 71,323 | |
Later than five years | |||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | |||
Long-term debts, undiscounted cash flows | 15,792 | 17,243 | |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 1,362 | ||
Total contractual undiscounted cash flows | ¥ 17,154 | ¥ 17,243 |
FINANCIAL RISK MANAGEMENT AND_6
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - CURRENCY RISK (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/decrease rate of RMB against foreign currencies | 5.00% | 5.00% |
US Dollar denominated | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Gross exposure arising from loans | $ 668 | $ 204 |
Increase(decrease) of net income due to rate of RMB against foreign currencies | $ 172 | $ 50 |
FINANCIAL RISK MANAGEMENT AND_7
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - INTEREST RATE RISK (Details) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018CNY (¥)Point | Dec. 31, 2017CNY (¥)Point | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES [abstract] | ||
Estimated increase/decrease) of variable interest rate on basis points | Point | 100 | 100 |
Decrease/Increase in net income attributed to interest rate risk | ¥ | ¥ 424 | ¥ 450 |
FINANCIAL RISK MANAGEMENT AND_8
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - COMMODITY RISK (Details) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018CNY (¥)$ / bbl | Dec. 31, 2017CNY (¥)$ / bbl | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES [abstract] | ||
Derivative financial assets | ¥ 7,844 | ¥ 515 |
Derivative financial liabilities | ¥ 13,568 | ¥ 2,624 |
Increase/decrease in basic price of derivative financial instruments | $ / bbl | 10 | 10 |
Decrease/Increase in net income attributed to commodity price risk | ¥ 197 | ¥ 4,049 |
Decrease/Increase in other reserves attributed to commodity price risk | ¥ 6,850 | ¥ 701 |
FINANCIAL RISK MANAGEMENT AND_9
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE - ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value measurement of assets [line items] | |||
Assets | ¥ 1,592,308 | ¥ 1,595,504 | ¥ 1,498,609 |
Liabilities | 735,773 | 742,614 | ¥ 667,374 |
Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 35,069 | 51,900 | |
Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 13,571 | 2,665 | |
Level 1 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 1,183 | 521 | |
Level 1 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 5,500 | 1,277 | |
Level 2 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 7,013 | 183 | |
Level 2 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 8,071 | 1,388 | |
Level 3 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 26,873 | 51,196 | |
Derivative financial instruments | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 13,571 | 2,665 | |
Derivative financial instruments | Level 1 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 5,500 | 1,277 | |
Derivative financial instruments | Level 2 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 8,071 | 1,388 | |
Structured deposit | Financial assets at fair value through profit or loss | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 25,550 | 51,196 | |
Structured deposit | Level 3 of fair value hierarchy | Financial assets at fair value through profit or loss | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 25,550 | 51,196 | |
Available-for-sale financial assets - listed | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 178 | ||
Available-for-sale financial assets - listed | Level 1 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 178 | ||
Equity investments | Financial assets at fair value through other comprehensive income | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 1,450 | ||
Equity investments | Financial assets at fair value through profit or loss | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 182 | ||
Equity investments | Level 1 of fair value hierarchy | Financial assets at fair value through other comprehensive income | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 127 | ||
Equity investments | Level 1 of fair value hierarchy | Financial assets at fair value through profit or loss | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 182 | ||
Equity investments | Level 3 of fair value hierarchy | Financial assets at fair value through other comprehensive income | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 1,323 | ||
Derivative financial instruments | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 7,887 | 526 | |
Derivative financial instruments | Level 1 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 874 | 343 | |
Derivative financial instruments | Level 2 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | ¥ 7,013 | ¥ 183 |
FINANCIAL RISK MANAGEMENT AN_10
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - FINANCIAL INSTRUMENTS CARRIED OTHER THAN FAIR VALUE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about fair values of financial instruments carried at other than fair value [line items] | ||
Carrying amount | ¥ 63,085 | ¥ 79,738 |
Fair value | ¥ 62,656 | ¥ 78,040 |
Minimum | ||
Disclosure of detailed information about fair values of financial instruments carried at other than fair value [line items] | ||
Current market interest rates | 2.76% | 1.79% |
Maximum | ||
Disclosure of detailed information about fair values of financial instruments carried at other than fair value [line items] | ||
Current market interest rates | 4.90% | 4.90% |
RESERVES (Details)
RESERVES (Details) - CNY (¥) | 1 Months Ended | 12 Months Ended | |||||
Sep. 12, 2018 | Jun. 04, 2018 | Sep. 20, 2017 | Jul. 18, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Balance at beginning of year | ¥ 605,049,000,000 | ||||||
Transaction with non-controlling interests | (311,000,000) | ¥ 711,000,000 | ¥ 233,000,000 | ||||
Other comprehensive income | (6,624,000,000) | (4,376,000,000) | 6,333,000,000 | ||||
Amounts transferred to cash flow hedge reserves initially recognized by hedged items | 5,269,000,000 | ||||||
Net income attributable to ordinary owners of the Company | 61,618,000,000 | 51,244,000,000 | 46,672,000,000 | ||||
Final dividend inspect of the previous year, approved and paid during the year (Note (e)) | ¥ (48,428,000,000) | ¥ (20,582,000,000) | (48,428,000,000) | (20,582,000,000) | (7,264,000,000) | ||
Interim dividend (Note (f)) | ¥ (19,371,000,000) | ¥ (12,107,000,000) | (19,371,000,000) | (12,107,000,000) | (9,565,000,000) | ||
Appropriation | 0 | 0 | |||||
Others | (371,000,000) | 92,000,000 | 125,000,000 | ||||
Balance at end of year | 596,213,000,000 | 605,049,000,000 | |||||
Sinopec Assets Management Corporation ("SAMC") | |||||||
Net income attributable to ordinary owners of the Company | 86,000,000 | ||||||
Capital reserve | |||||||
Balance at beginning of year | 26,326,000,000 | 26,290,000,000 | |||||
Transaction with non-controlling interests | (12,000,000) | (13,000,000) | (30,000,000) | ||||
Others | (261,000,000) | 49,000,000 | 116,000,000 | ||||
Balance at end of year | 26,053,000,000 | 26,326,000,000 | 26,290,000,000 | ||||
Share premium | |||||||
Balance at beginning of year | 55,850,000,000 | 55,850,000,000 | |||||
Balance at end of year | 55,850,000,000 | 55,850,000,000 | 55,850,000,000 | ||||
Statutory surplus reserve | |||||||
Balance at beginning of year | 82,682,000,000 | 79,640,000,000 | |||||
Appropriation | 3,996,000,000 | 3,042,000,000 | 0 | ||||
Balance at end of year | 86,678,000,000 | 82,682,000,000 | 79,640,000,000 | ||||
Discretionary surplus reserve | |||||||
Balance at beginning of year | 117,000,000,000 | 117,000,000,000 | |||||
Balance at end of year | 117,000,000,000 | 117,000,000,000 | 117,000,000,000 | ||||
Other reserves | |||||||
Balance at beginning of year | (2,934,000,000) | ||||||
Other comprehensive income | (7,618,000,000) | (3,481,000,000) | 7,052,000,000 | ||||
Amounts transferred to cash flow hedge reserves initially recognized by hedged items | 5,269,000,000 | ||||||
Others | 818,000,000 | 123,000,000 | 153,000,000 | ||||
Balance at end of year | (4,477,000,000) | (2,934,000,000) | |||||
Other reserves | Change in accounting policy (Note 1(a)) | |||||||
Change in accounting policy | (12,000,000) | ||||||
Balance as of January 1 | (2,946,000,000) | 424,000,000 | |||||
Retained earnings | |||||||
Balance at beginning of year | 326,125,000,000 | ||||||
Net income attributable to ordinary owners of the Company | 61,618,000,000 | 51,244,000,000 | |||||
Final dividend inspect of the previous year, approved and paid during the year (Note (e)) | (48,428,000,000) | (20,582,000,000) | (7,264,000,000) | ||||
Interim dividend (Note (f)) | (19,371,000,000) | (12,107,000,000) | (9,565,000,000) | ||||
Appropriation | (3,996,000,000) | (3,042,000,000) | |||||
Others | (851,000,000) | (107,000,000) | (153,000,000) | ||||
Balance at end of year | ¥ 315,109,000,000 | 326,125,000,000 | |||||
Retained earnings | Change in accounting policy (Note 1(a)) | |||||||
Change in accounting policy | 12,000,000 | ||||||
Balance as of January 1 | ¥ 326,137,000,000 | 310,719,000,000 | |||||
Retained earnings | Sinopec Assets Management Corporation ("SAMC") | |||||||
Net income attributable to ordinary owners of the Company | ¥ 47,000,000 |
RESERVES - NARRATIVE (Details)
RESERVES - NARRATIVE (Details) - CNY (¥) | 1 Months Ended | 12 Months Ended | |||||||||
Sep. 12, 2018 | Jun. 04, 2018 | Sep. 20, 2017 | Jul. 18, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 24, 2018 | May 15, 2018 | Aug. 25, 2017 | Jun. 28, 2017 | |
Stated rate of net income transferred to statutory surplus reserve | 10.00% | ||||||||||
Appropriation | ¥ 0 | ¥ 0 | |||||||||
Amount of retained earnings available for distribution | ¥ 143,148,000,000 | 177,049,000,000 | |||||||||
Final dividend per share in respect of the year proposed | ¥ 0.26 | ||||||||||
Final dividend per share in respect of the year approved | ¥ 0.40 | ¥ 0.17 | |||||||||
Final dividend in respect of the year proposed | ¥ 31,479,000,000 | ||||||||||
Final dividend in respect of the year approved | ¥ 48,428,000,000 | ¥ 20,582,000,000 | 48,428,000,000 | 20,582,000,000 | ¥ 7,264,000,000 | ||||||
Interim dividend per share for the year | ¥ 0.16 | ¥ 0.10 | |||||||||
Interim dividend | ¥ 19,371,000,000 | ¥ 12,107,000,000 | 19,371,000,000 | 12,107,000,000 | 9,565,000,000 | ||||||
Statutory surplus reserve | |||||||||||
Appropriation | ¥ 3,996,000,000 | ¥ 3,042,000,000 | ¥ 0 | ||||||||
Minimum | |||||||||||
Stated rate of reserve to registered capital | 25.00% | ||||||||||
Maximum | |||||||||||
Stated rate of reserve to registered capital | 50.00% |