DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2022 shares | |
Class of Shares | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 1-15138 |
Entity Registrant Name | CHINA PETROLEUM & CHEMICAL CORPORATION |
Entity Incorporation, State or Country Code | F4 |
Entity Address, Address Line One | 22 Chaoyangmen North Street |
Entity Address, Address Line Two | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100728 |
Entity Address, Country | CN |
Title of 12(b) Security | None |
No Trading Symbol Flag | true |
Security Exchange Name | NONE |
Amendment Flag | false |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Current Fiscal Year End Date | --12-31 |
ICFR Auditor Attestation Flag | true |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0001123658 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Name | KPMG Huazhen LLP |
Auditor Firm ID | 1186 |
Auditor Location | Beijing, China |
Business Contact | |
Class of Shares | |
Contact Personnel Name | Mr. Huang Wensheng |
Entity Address, Address Line One | 22 Chaoyangmen North Street |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100728 |
City Area Code | 86 (10) |
Local Phone Number | 5996 0028 |
Contact Personnel Fax Number | 5996 0386 |
Entity Address, Country | CN |
H shares | |
Class of Shares | |
Entity Common Stock, Shares Outstanding | 24,780,936,600 |
A shares | |
Class of Shares | |
Entity Common Stock, Shares Outstanding | 95,115,471,046 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Revenue from primary business | ¥ 3,257,356 | ¥ 2,679,500 | ¥ 2,048,654 |
Other operating revenues | 60,812 | 61,384 | 56,070 |
Sales of goods and other operating revenues | 3,318,168 | 2,740,884 | 2,104,724 |
Operating expenses | |||
Purchased crude oil, products and operating supplies and expenses | (2,684,756) | (2,076,665) | (1,589,821) |
Selling, general and administrative expenses | (55,809) | (54,978) | (53,668) |
Depreciation, depletion and amortization | (109,906) | (115,680) | (107,461) |
Exploration expenses, including dry holes | (10,591) | (12,382) | (9,716) |
Personnel expenses | (103,585) | (103,492) | (87,525) |
Taxes other than income tax | (263,991) | (259,032) | (235,018) |
Impairment (losses)/reversals on trade and other receivables | 1,084 | (2,311) | (2,066) |
Other operating income/(expenses), net | (14,779) | (21,716) | (5,780) |
Total operating expenses | (3,242,333) | (2,646,256) | (2,091,055) |
Operating income | 75,835 | 94,628 | 13,669 |
Finance costs | |||
Interest expense | (16,769) | (15,018) | (15,198) |
Interest income | 6,266 | 5,732 | 4,803 |
Foreign currency exchange gains, net | 529 | 276 | 885 |
Net finance costs | (9,974) | (9,010) | (9,510) |
Investment income | 14,060 | 298 | 37,744 |
Share of profits less losses from associates and joint ventures | 14,479 | 23,253 | 6,712 |
Earnings before income tax | 94,400 | 109,169 | 48,615 |
Income tax expense | (18,757) | (23,318) | (6,344) |
Net income | 75,643 | 85,851 | 42,271 |
Attributable to: | |||
Owners of the Company | 66,153 | 71,975 | 33,443 |
Non-controlling interests | 9,490 | 13,876 | 8,828 |
Net income | ¥ 75,643 | ¥ 85,851 | ¥ 42,271 |
Earnings per share: | |||
Basic | ¥ 0.55 | ¥ 0.59 | ¥ 0.28 |
Diluted | ¥ 0.55 | ¥ 0.59 | ¥ 0.28 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income for the year | ¥ 75,643 | ¥ 85,851 | ¥ 42,271 |
Items that may not be reclassified subsequently to profit or loss | |||
Equity investments at fair value through other comprehensive income | (67) | (4) | (22) |
Total items that may not be reclassified subsequently to profit or loss | (67) | (4) | (22) |
Items that may be reclassified subsequently to profit or loss | |||
Cost of hedging reserve | 149 | (220) | 162 |
Share of other comprehensive income of associates and joint ventures | 2,856 | 441 | (2,441) |
Cash flow hedges | 11,637 | 19,018 | 7,073 |
Foreign currency translation differences | 7,254 | (1,728) | (4,457) |
Total items that may be reclassified subsequently to profit or loss | 21,896 | 17,511 | 337 |
Total other comprehensive income | 21,829 | 17,507 | 315 |
Total comprehensive income | 97,472 | 103,358 | 42,586 |
Attributable to: | |||
Owners of the Company | 85,279 | 89,549 | 34,837 |
Non-controlling interests | 12,193 | 13,809 | 7,749 |
Total comprehensive income | ¥ 97,472 | ¥ 103,358 | ¥ 42,586 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | ¥ 93,438 | ¥ 108,590 |
Time deposits with financial institutions | 51,614 | 113,399 |
Financial assets at fair value through profit or loss | 2 | |
Derivative financial assets | 19,335 | 18,371 |
Trade accounts receivable | 46,364 | 34,861 |
Financial assets at fair value through other comprehensive income | 3,507 | 5,939 |
Inventories | 244,241 | 207,433 |
Prepaid expenses and other current assets | 64,639 | 69,431 |
Total current assets | 523,140 | 558,024 |
Non-current assets | ||
Property, plant and equipment, net | 630,700 | 598,925 |
Construction in progress | 196,045 | 155,939 |
Right-of-use assets | 264,856 | 268,408 |
Goodwill | 6,464 | 8,594 |
Interest in associates | 159,150 | 148,729 |
Interest in joint ventures | 74,791 | 60,450 |
Financial assets at fair value through other comprehensive income | 730 | 767 |
Deferred tax assets | 19,952 | 19,389 |
Long-term prepayments and other assets | 72,812 | 70,030 |
Total non-current assets | 1,425,500 | 1,331,231 |
Total assets | 1,948,640 | 1,889,255 |
Current liabilities | ||
Short-term debts | 59,037 | 35,252 |
Loans from Sinopec Group Company and fellow subsidiaries | 7,292 | 2,873 |
Lease liabilities | 16,004 | 15,173 |
Derivative financial liabilities | 7,313 | 3,223 |
Trade accounts payable and bills payable | 269,424 | 215,640 |
Contract liabilities | 125,444 | 124,622 |
Other payables | 178,146 | 239,688 |
Income tax payable | 4,725 | 4,809 |
Total current liabilities | 667,385 | 641,280 |
Non-current liabilities | ||
Long-term debts | 85,706 | 78,300 |
Loans from Sinopec Group Company and fellow subsidiaries | 22,255 | 13,690 |
Lease liabilities | 166,407 | 170,233 |
Deferred tax liabilities | 8,079 | 7,910 |
Provisions | 47,587 | 43,525 |
Other long-term liabilities | 14,983 | 19,243 |
Total non-current liabilities | 345,017 | 332,901 |
Total liabilities | 1,012,402 | 974,181 |
Equity | ||
Share capital | 119,896 | 121,071 |
Reserves | 664,810 | 653,111 |
Total equity attributable to owners of the Company | 784,706 | 774,182 |
Non-controlling interests | 151,532 | 140,892 |
Total equity | 936,238 | 915,074 |
Total liabilities and equity | ¥ 1,948,640 | ¥ 1,889,255 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CNY (¥) ¥ in Millions | Share capital | Capital reserve | Share premium | Statutory surplus reserve | Discretionary surplus reserve | Other reserves | Retained earnings | Total equity attributable to owners of the Company | Non-controlling interests | Total |
Balance at beginning of year at Dec. 31, 2019 | ¥ 121,071 | ¥ 34,503 | ¥ 55,850 | ¥ 90,423 | ¥ 117,000 | ¥ 1,941 | ¥ 322,931 | ¥ 743,719 | ¥ 138,359 | ¥ 882,078 |
Net income for the year | 33,443 | 33,443 | 8,828 | 42,271 | ||||||
Other comprehensive income (Note 12) | 1,406 | (12) | 1,394 | (1,079) | 315 | |||||
Total comprehensive income for the year | 1,406 | 33,431 | 34,837 | 7,749 | 42,586 | |||||
Amounts transferred to initial carrying amount of hedged items | (47) | (47) | 48 | 1 | ||||||
Contributions by and distributions to owners: | ||||||||||
Final dividend | (23,004) | (23,004) | (23,004) | |||||||
Interim dividend | (8,475) | (8,475) | (8,475) | |||||||
Appropriation (Note 43(c)) | 1,857 | (1,857) | ||||||||
Distributions to non-controlling interests | (6,726) | (6,726) | ||||||||
Distribution to SAMC in the Acquisition of Baling Branch of SAMC | (972) | (972) | 972 | |||||||
Other contributions | 3,325 | 3,325 | ||||||||
Total contributions by and distributions to owners | (972) | 1,857 | (33,336) | (32,451) | (2,429) | (34,880) | ||||
Transaction with non-controlling interests | (138) | (138) | 13 | (125) | ||||||
Total transactions with owners | (1,110) | 1,857 | (33,336) | (32,589) | (2,416) | (35,005) | ||||
Others | 870 | 200 | (665) | 405 | (2,363) | (1,958) | ||||
Balance at end of year at Dec. 31, 2020 | 121,071 | 34,263 | 55,850 | 92,280 | 117,000 | 3,500 | 322,361 | 746,325 | 141,377 | 887,702 |
Net income for the year | 71,975 | 71,975 | 13,876 | 85,851 | ||||||
Other comprehensive income (Note 12) | 17,574 | 17,574 | (67) | 17,507 | ||||||
Total comprehensive income for the year | 17,574 | 71,975 | 89,549 | 13,809 | 103,358 | |||||
Amounts transferred to initial carrying amount of hedged items | (19,302) | (19,302) | (648) | (19,950) | ||||||
Contributions by and distributions to owners: | ||||||||||
Final dividend | (15,739) | (15,739) | (15,739) | |||||||
Interim dividend | (19,371) | (19,371) | (19,371) | |||||||
Appropriation (Note 43(c)) | 3,944 | (3,944) | ||||||||
Distributions to non-controlling interests | (8,982) | (8,982) | ||||||||
Distribution to sellers in the business combination of entities under common control (Note 35) | (6,124) | (6,124) | (6,124) | |||||||
Other contributions | 1,973 | 1,973 | ||||||||
Total contributions by and distributions to owners | (6,124) | 3,944 | (39,054) | (41,234) | (7,009) | (48,243) | ||||
Transaction with non-controlling interests | (1,396) | (1,396) | (6,796) | (8,192) | ||||||
Total transactions with owners | (7,520) | 3,944 | (39,054) | (42,630) | (13,805) | (56,435) | ||||
Others | 319 | 723 | (802) | 240 | 159 | 399 | ||||
Balance at end of year at Dec. 31, 2021 | 121,071 | 27,062 | 55,850 | 96,224 | 117,000 | 2,495 | 354,480 | 774,182 | 140,892 | 915,074 |
Net income for the year | 66,153 | 66,153 | 9,490 | 75,643 | ||||||
Other comprehensive income (Note 12) | 19,126 | 19,126 | 2,703 | 21,829 | ||||||
Total comprehensive income for the year | 19,126 | 66,153 | 85,279 | 12,193 | 97,472 | |||||
Amounts transferred to initial carrying amount of hedged items | (15,363) | (15,363) | (439) | (15,802) | ||||||
Transactions with owners, recorded directly in equity: | ||||||||||
Purchase of own shares (Note 33) | (1,175) | (3,004) | (4,179) | (4,179) | ||||||
Contributions by and distributions to owners: | ||||||||||
Final dividend | (37,532) | (37,532) | (37,532) | |||||||
Interim dividend | (19,371) | (19,371) | (19,371) | |||||||
Appropriation (Note 43(c)) | 4,610 | (4,610) | ||||||||
Distributions to non-controlling interests | (6,691) | (6,691) | ||||||||
Contributions to subsidiaries from non-controlling interests | 5,395 | 5,395 | ||||||||
Other contributions | 2,678 | 2,678 | 2,191 | 4,869 | ||||||
Total contributions by and distributions to owners | 2,678 | 4,610 | (61,513) | (54,225) | 895 | (53,330) | ||||
Transaction with non-controlling interests | (1,713) | (1,713) | ||||||||
Total transactions with owners | (1,175) | 2,678 | (3,004) | 4,610 | (61,513) | (58,404) | (818) | (59,222) | ||
Other equity movements under the equity method | (1,009) | (1,009) | (1,009) | |||||||
Others | 22 | 149 | (150) | 21 | (296) | (275) | ||||
Balance at end of year at Dec. 31, 2022 | ¥ 119,896 | ¥ 28,753 | ¥ 52,846 | ¥ 100,834 | ¥ 117,000 | ¥ 6,407 | ¥ 358,970 | ¥ 784,706 | ¥ 151,532 | ¥ 936,238 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Net cash generated from operating activities | ¥ 116,269 | ¥ 225,174 | ¥ 168,520 |
Investing activities | |||
Capital expenditure | (153,744) | (127,965) | (118,321) |
Exploratory wells expenditure | (18,783) | (16,956) | (13,315) |
Purchase of investments | (9,234) | (4,935) | (6,040) |
Payment for financial assets at fair value through profit or loss | (1,222) | (8,150) | (6,700) |
Proceeds from settlement of financial assets at fair value through profit or loss | 1,220 | 8,248 | 10,000 |
Payment for acquisition of subsidiary, net of cash acquired | (7,881) | (1,106) | (340) |
Proceeds from disposal of investments | 10,801 | 6,769 | 51,520 |
Proceeds from disposal of property, plant, equipment and other non-current assets | 212 | 1,478 | 2,656 |
Increase in time deposits with maturities over three months | (31,670) | (50,844) | (84,689) |
Decrease in time deposits with maturities over three months | 93,455 | 34,298 | 54,950 |
Interest received | 6,918 | 3,372 | 2,305 |
Investment and dividend income received | 13,969 | 10,134 | 11,510 |
(Payments of) / proceeds from other investing activities | 949 | 459 | (6,186) |
Net cash used in investing activities | (95,010) | (145,198) | (102,650) |
Financing activities | |||
Proceeds from bank and other loans | 564,417 | 356,459 | 558,680 |
Repayments of bank and other loans | (514,275) | (338,232) | (540,015) |
Contributions to subsidiaries from non-controlling interests | 3,946 | 1,001 | 4,219 |
Dividends paid by the Company | (56,903) | (35,110) | (31,479) |
Distributions by subsidiaries to non-controlling interests | (5,249) | (8,068) | (4,821) |
Interest paid | (9,679) | (5,849) | (7,512) |
Payments made to acquire non-controlling interests | (8,198) | (1,121) | |
Cash payments to purchase own shares | (4,179) | ||
Repayments of lease liabilities | (18,672) | (19,412) | (15,327) |
Proceeds from other financing activities | 989 | 133 | 700 |
Repayments of other financing activities | (94) | (666) | (834) |
Net cash used in financing activities | (39,699) | (57,942) | (37,510) |
Net increase/(decrease) in cash and cash equivalents | (18,440) | 22,034 | 28,360 |
Cash and cash equivalents as at January 1 | 108,590 | 87,559 | 60,438 |
Effect of foreign currency exchange rate changes | 3,288 | (1,003) | (1,239) |
Cash and cash equivalents as at December 31 | 93,438 | 108,590 | 87,559 |
Operating activities | |||
Earnings before income tax | 94,400 | 109,169 | 48,615 |
Adjustment for: | |||
Depreciation, depletion and amortization | 109,906 | 115,680 | 107,461 |
Dry hole costs written off | 6,416 | 7,702 | 5,928 |
Income from associates and joint ventures | (14,479) | (23,253) | (6,712) |
Investment income | (14,060) | (298) | (37,744) |
Interest income | (6,266) | (5,732) | (4,803) |
Interest expense | 16,769 | 15,018 | 15,198 |
Loss/(gain) on foreign currency exchange rate changes and derivative financial instruments | 3,064 | (3,723) | 2,003 |
(Gain)/loss on disposal of property, plant, equipment and other non-current assets, net | 722 | 3,062 | (398) |
Impairment losses on assets | 12,009 | 13,165 | 26,087 |
Impairment losses/(reversals) on trade and other receivables | (1,084) | 2,311 | 2,066 |
Cash flows from (used in) operations before changes in working capital | 207,397 | 233,101 | 157,701 |
Net changes from: | |||
Accounts receivable and other current assets | 1,974 | (8,177) | (17,610) |
Inventories | (45,421) | (58,372) | 22,407 |
Accounts payable and other current liabilities | (30,363) | 82,408 | 15,169 |
Net charges from operating activities | 133,587 | 248,960 | 177,667 |
Income tax paid | (17,318) | (23,786) | (9,147) |
Net cash generated from operating activities | ¥ 116,269 | ¥ 225,174 | ¥ 168,520 |
PRINCIPAL ACTIVITIES, ORGANIZAT
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2022 | |
PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION | |
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 incorporated in the People’s Republic of China (the “PRC”) that, through its subsidiaries (hereinafter collectively referred to as the “Group”), engages in oil and gas and chemical operations. 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 on 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 April 28, 2023. 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 The IASB has issued the following amendments to IFRSs that are first effective for the current accounting period of the Group: ● Amendment to IAS 16, Property, Plant and Equipment: Proceeds before Intended Use ● Amendment to IAS 37, Provisions, contingent liabilities and contingent assets: Onerous contracts — cost of fulfilling a contract None of these developments have had a material effect on how the Group’s results and financial position for the current or prior periods have been prepared or presented. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period. (b) New and amended standards and interpretations not yet adopted by the Group A number of new accounting standards and interpretations have been published that are not mandatory for December 31, 2022 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. 1 PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PREPARATION (Continued) Basis of preparation (Continued) (b) New and amended standards and interpretations not yet adopted by the Group (Continued) 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 41. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | |
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. When assessing whether the Group has power, only substantive rights (held by the Group and other parties) are considered. 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 date of statement of financial position, 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 statements of financial position and consolidated statements 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 income statements and the consolidated statements 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 income statements. 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(j)) or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture (Note 2(a)(ii)). 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (a) Basis of consolidation (Continued) In the Company’s statement of financial position, investments in subsidiaries are stated at cost less impairment losses (Note 2(n)). The particulars of the Group’s principal subsidiaries are set out in Note 39. (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 and separate 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 (Notes 2(i) and (n)). 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 income statements, whereas the Group’s share of the post-acquisition, post-tax items of the investees’ other comprehensive income is recognized in the consolidated statements of comprehensive income. When the Group’s share of losses exceeds its interest in the associate or the joint venture, the Group’s interest is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the investee. For this purpose, the Group’s interest is the carrying amount of the investment under the equity method, together with any other long-term interests that in substance form part of the Group’s net investment in the associate or the joint venture, after applying the expected credit losses (“ECLs”) model to such other long-term interests where applicable. 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(j)) or, when appropriate, the cost on initial recognition of an investment in an associate. (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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (a) Basis of consolidation (Continued) The consolidated income statements include 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 beginning of the earliest period presented 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 date of the statement of financial position. Exchange differences, other than those capitalized as construction in progress, are recognized as income or expense in the “finance costs” section of the consolidated income statement. The results of foreign operations are translated into Renminbi at the applicable rates quoted by the PBOC prevailing on the transaction dates. The statement of financial position items, including goodwill arising on consolidation of foreign operations are translated into Renminbi at the closing foreign exchange rates at the date of the statement of financial position. 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 income statements 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 recognized initially at their transaction price, unless they contain significant financing components when they are recognized at fair value. They are subsequently measured at amortized cost using the effective interest method, less loss allowances for ECLs (Note 2(j)).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 mainly 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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (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(n)). 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 income statements 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 income statements 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 3% Equipment, machinery and others 4 to 30 years 3% 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 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) 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(n)). 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. Items may be produced while bringing an item of property, plant and equipment to the location and condition necessary for it to be capable of operating in the manner intended by management. The proceeds from selling any such items and the related costs are recognized in profit or loss. 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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (i) 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(n)). 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(n)). (j) 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 (“FVOCI”), c) financial assets measured at fair value through profit or loss. A contractual cash flow characteristic which could have only a de minimis effect on the contractual cash flows of the financial assets, 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. However, 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 and FVOCI. ● 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 outstanding. Interest income from these financial assets is recognized using the effective interest rate method. ● FVOCI: The business model for managing such financial assets by the Group are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment gains or losses, foreign exchange gains and losses and interest income calculated using the effective interest rate method, which are recognized in profit or loss. 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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (j) Financial assets (Continued) In addition, the Group designates some equity instruments that are not held for trading as financial assets at FVOCI, are presented in financial assets at FVOCI. 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 ECLs on a financial asset that is measured at amortized cost and a debt instrument that is measured at FVOCI. The Group measures and recognizes ECLs, considering reasonable and supportable information about the relevant past events, current conditions and forecasts of future economic conditions. The Group measures the ECLs of financial instruments on different stages at each the date of the statement of financial position. 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 ECLs. 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 ECLs. 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 ECLs. For financial instruments that have low credit risk at the date of the statement of financial position, 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 ECLs. 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 trade accounts receivable and bills receivable and financial assets at FVOCI related to revenue, the Group measures the loss allowance at an amount equal to lifetime ECLs. 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 equity instruments at FVOCI, the amount accumulated in the fair value reserve is transferred to retained earnings. It is not recycled through profit or loss. While on derecognition of other financial assets, this difference is recognized in profit or loss. (iv) Financial guarantees are contracts that require the issuer (i.e. the guarantor) to make specified payments to reimburse the beneficiary of the guarantee (the “holder”) for a loss the holder incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (j) Financial assets (Continued) Financial guarantees issued are initially recognized at fair value, which is determined by reference to fees charged in an arm’s length transaction for similar services, when such information is obtainable, or to interest rate differentials, by comparing the actual rates charged by lenders when the guarantee is made available with the estimated rates that lenders would have charged, had the guarantees not been available, where reliable estimates of such information can be made. Where consideration is received or receivable for the issuance of the guarantee, the consideration is recognized in accordance with the Group’s policies applicable to that category of asset. Where no such consideration is received or receivable, an immediate expense is recognized in profit or loss. Subsequent to initial recognition, the amount initially recognized as deferred income is amortized in profit or loss over the term of the guarantee as income from financial guarantees issued. The Group monitors the risk that the specified debtor will default on the contract and recognizes a provision when ECLs on the financial guarantees are determined to be higher than the carrying amount in respect of the guarantees (i.e. the amount initially recognized, less accumulated amortization). (k) 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 trade accounts payable and bills 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. (l) 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. (m) Derivative financial instruments and hedge accounting Derivative financial instruments are recognized initially at fair value. At each date of the statement of financial position, 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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (m) Derivative financial instruments and hedge accounting (Continued) The hedging relationship meets all of the following hedge effectiveness requirements: (i) (ii) (iii) 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) (ii) 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 non-financial 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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (m) Derivative financial instruments and hedge accounting (Continued) 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. Fair value hedges A fair value hedge is a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, or a portion of such an asset, liability or firm commitment. The gain or loss from remeasuring the hedging instrument is recognized in profit or loss. The gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the recognized hedged item not measured at fair value and is recognized in profit or loss. Any adjustment to the carrying amount of a hedged item is amortized to profit or loss if the hedged item is a financial instrument (or a component thereof) measured at amortized cost. The amortization is based on a recalculated effective interest rate at the date that amortization begins. (n) Impairment of assets The carrying amounts of assets, including property, plant and eq |
REVENUE FROM PRIMARY BUSINESS
REVENUE FROM PRIMARY BUSINESS | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE FROM PRIMARY BUSINESS | |
REVENUE FROM PRIMARY BUSINESS | 3. REVENUE FROM PRIMARY BUSINESS Revenue from primary business mainly represents revenue from the sales of refined petroleum products, chemical products, crude oil and natural gas, which are recognized at a point in time. Years ended December 31, 2020 2021 2022 RMB RMB RMB Gasoline 557,605 726,057 796,667 Diesel 422,566 542,260 743,551 Crude oil 351,707 429,038 517,183 Chemical feedstock 22,351 44,079 42,785 Basic organic chemicals 133,046 198,453 223,679 Synthetic resin 122,368 149,208 144,524 Kerosene 72,385 112,519 168,017 Natural gas 48,099 68,443 83,853 Synthetic fiber monomers and polymers 42,388 45,464 45,335 Others (i) 276,139 363,979 491,762 2,048,654 2,679,500 3,257,356 Note: (i) Others are primarily liquefied petroleum gas and other refinery and chemical byproducts and joint products. |
OTHER OPERATING REVENUES
OTHER OPERATING REVENUES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER OPERATING REVENUES | |
OTHER OPERATING REVENUES | 4. OTHER OPERATING REVENUES Years ended December 31, 2020 2021 2022 RMB RMB RMB Sale of materials and others 54,986 59,990 59,590 Rental income 1,084 1,394 1,222 56,070 61,384 60,812 |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |
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, 2020 2021 2022 RMB RMB RMB Variable lease payments, low-value and short-term lease payment 2,683 2,393 2,205 Auditor’s remuneration: - Audit services 73 59 66 - Others 8 8 3 |
PERSONNEL EXPENSES
PERSONNEL EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
PERSONNEL EXPENSES | |
PERSONNEL EXPENSES | 6. PERSONNEL EXPENSES Years ended December 31, 2020 2021 2022 RMB RMB RMB Salaries, wages and other benefits 78,542 91,560 90,395 Contributions to retirement schemes (Note 37) 8,983 11,932 13,190 87,525 103,492 103,585 |
TAXES OTHER THAN INCOME TAX
TAXES OTHER THAN INCOME TAX | 12 Months Ended |
Dec. 31, 2022 | |
TAXES OTHER THAN INCOME TAX | |
TAXES OTHER THAN INCOME TAX | 7. TAXES OTHER THAN INCOME TAX Years ended December 31, 2020 2021 2022 RMB RMB RMB Consumption tax (i) 197,542 213,894 206,838 City construction tax (ii) 15,710 18,044 17,081 Special oil income levy 34 1,573 13,874 Education surcharge(ii) 11,678 13,409 12,337 Resources tax 4,572 6,432 8,752 Others 5,482 5,680 5,109 235,018 259,032 263,991 Notes: (i) Consumption tax was levied based on sales quantities of taxable products, tax rate of products is presented as below: 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 and education surcharge is levied on an entity based on its paid amount of value-added tax and consumption tax. |
OTHER OPERATING INCOME _ (EXPEN
OTHER OPERATING INCOME / (EXPENSES), NET | 12 Months Ended |
Dec. 31, 2022 | |
OTHER OPERATING INCOME / (EXPENSES), NET | |
OTHER OPERATING INCOME / (EXPENSES), NET | 8. OTHER OPERATING INCOME / (EXPENSES), NET Years ended December 31, 2020 2021 2022 RMB RMB RMB Government grants(i) 8,776 6,706 9,277 Ineffective portion of change in fair value of cash flow hedges 3,052 694 (255) Net realized and unrealized loss on derivative financial instruments not qualified as hedging (1,252) (14,873) (15,535) Impairment losses on long-lived assets (ii) (14,629) (10,035) (5,669) Gain/(loss) on disposal of property, plant, equipment and other 398 (3,062) (722) Fines, penalties and compensations (43) (220) (39) Donations (301) (165) (447) Others (1,781) (761) (1,389) (5,780) (21,716) (14,779) Notes: (i) Government grants for the years ended December 31, 2020, 2021 and 2022 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 8,495 , RMB 2,467 and RMB 2,891 for the years ended December 31, 2020, 2021 and 2022, respectively. The impairment comprised RMB 8,435 , RMB 2,467 and RMB 2,891 on property, plant and equipment for the years ended December 31, 2020, 2021 and 2022, respectively, and RMB 60 on construction in progress for the year ended December 31, 2020. The primary factors resulting in the E&P segment impairment loss were downward revision of oil and gas reserve in certain fields and high extraction costs. E&P segment determines recoverable amounts of property, plant and equipment relating to oil and gas producing activities, which include significant judgements and assumptions. The recoverable amounts were determined based on the present values of the expected future cash flows of the assets using pre-tax discount rates of 10.47% , 10.47% and 8.17% to 14.86% for the years ended December 31, 2020, 2021 and 2022, respectively. Further future downward revisions to the Group’s oil or nature gas 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 4,548 , RMB 3,628 and RMB 1,693 for the years ended December 31, 2020, 2021 and 2022, respectively. 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 property plant and equipment relating to oil and gas producing activities by approximately RMB 2,836 , RMB 2,400 and RMB 1,508 for the years ended December 31, 2020, 2021 and 2022,respectively. It is estimated that a general increase of 5% in discount rate, with all other variables held constant, would result in additional impairment loss on the Group’s property, plant and equipment relating to oil and gas producing activities by approximately RMB 287 , RMB 180 and RMB 126 for the years ended December 31, 2020, 2021 and 2022, respectively. 8. OTHER OPERATING INCOME / (EXPENSES), NET (Continued) Impairment losses recognized for the chemicals segment were RMB 3,675, RMB 5,332 and RMB 1,790 for the years ended December 31, 2020, 2021 and 2022, respectively, and comprised of impairment losses of RMB 2,680, RMB 5,184 and RMB 1,790 on property, plant and equipment for the years ended December 31, 2020, 2021 and 2022, respectively, RMB 744 and RMB 62 on construction in progress for the years ended December 31, 2020 and 2021, respectively, RMB 16 on intangible assets for the year ended December 31, 2021, RMB 251 and RMB 70 for investment in associates and joint ventures for the years ended December 31, 2020 and 2021, respectively. Impairment losses recognized for the refining segment were RMB 1,923, RMB 860 and RMB 2 for the years ended December 31, 2020, 2021 and 2022, respectively, and comprised of impairment losses of RMB 226, RMB 860 and RMB 2 on property, plant and equipment for the years ended December 31, 2020, 2021 and 2022, respectively, RMB 1,697 for investment in joint venture for the year ended December 31, 2020. These impairment losses relate to certain refining and chemicals production facilities that are held for use for the years ended December 31, 2020, 2021 and 2022. The primary factors resulting in the impairment losses were due to the suspension of operations of certain production facilities, and evidence that indicate the economic performance of certain production facilities was lower than the expectation. The carrying amounts of these facilities were written down to their recoverable amounts, which were determined based on the present values of expected future cash flows of the assets using pre-tax discount rates ranging from 9.87% to 11.60%, 10.50% to 13.90% and 7.64% to 18.68% for the years ended December 31, 2020, 2021 and 2022. Impairment losses recognized on long-lived assets of the marketing and distribution segment were RMB 536, RMB 1,211 and RMB 415 for the years ended December 31, 2020, 2021 and 2022, respectively. The impairment comprised of impairment losses of RMB 442, RMB 873 and RMB 398 on property, plant and equipment for the years ended December 31, 2020, 2021 and 2022, respectively, impairment losses of RMB 47, RMB 246 and RMB 4 on intangible assets for the years ended December 31, 2020, 2021 and 2022, respectively, impairment losses of RMB 2 on right of use assets for the year ended December 31, 2021, impairment losses of RMB 7, RMB 8 and RMB 2 on investments in associates and joint ventures for the years ended December 31, 2020, 2021 and 2022, respectively, impairment losses of RMB 40, RMB 82 and RMB 11 on construction in progress for the years ended December 31, 2020, 2021 and 2022, respectively, 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 of similar properties in the same geographic area for closed or abandoned service stations. Impairment loss recognized on long-lived assets of the corporate and others segment were RMB 165 and RMB 571 for the years ended December 31, 2021 and 2022, respectively. The impairment comprised of impairment losses of RMB 3 and RMB 1 on property, plant and equipment for the years ended December 31, 2021 and 2022, respectively, impairment loss of RMB 162 on investments in associates and joint ventures for the year ended December 31, 2021, impairment loss of RMB 570 on construction in progress for the years ended December 31, 2022. |
INTEREST EXPENSE
INTEREST EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST EXPENSE. | |
INTEREST EXPENSE | 9. INTEREST EXPENSE Years ended December 31, 2020 2021 2022 RMB RMB RMB Interest expense incurred 6,517 5,679 7,877 Less: Interest expense capitalized* (2,011) (996) (1,307) 4,506 4,683 6,570 Interest expense on lease liabilities 9,349 9,200 9,096 Accretion expenses (Note 32) 1,343 1,135 1,103 Interest expense 15,198 15,018 16,769 * Interest rates per annum at which borrowing costs were capitalized for construction in progress 2.60% to 4.66% 1.84% to 4.35% 1.89% to 4.25% |
INVESTMENT INCOME
INVESTMENT INCOME | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT INCOME | |
INVESTMENT INCOME | 10. INVESTMENT INCOME Years ended December 31, 2020 2021 2022 RMB RMB RMB Investment income from disposal of business and long-term equity investments (i) 37,525 82 13,754 Dividend income from holding of other equity instrument investments 156 34 76 Others 63 182 230 37,744 298 14,060 Note: (i) The Company and Sinomart KTS Development Limited, Sinopec Natural Gas Limited Company and Sinopec Marketing Company Limited (“Marketing Company”), the subsidiaries of the Company entered into the Agreement on Cash Payment to Purchase Equity in Sinopec Yu Ji Pipeline Company Limited, the Agreement on Additional Issuance of Equity and Cash Payment to Purchase Assets, the Agreement on Cash Payment to Purchase Assets and the Agreement on Additional Issuance of Equity to Purchase Assets with China Oil & Gas Pipeline Network Corporation (“PipeChina”), on July 21, 2020 and on July 23, 2020 respectively, pursuant to which the Company and its subsidiaries proposed to dispose target business, including equity interests in the relevant companies, oil and gas pipeline and ancillary facilities, to PipeChina. The above transactions were considered and approved by the 15th Session of 7th Directorate Meeting on July 23, 2020 and the second Extraordinary General Meeting on September 28, 2020. The transaction consideration was mainly additional issuance of equity and/or cash payment by PipeChina and the gain on above transactions was RMB 37,731 in 2020. The Company and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. (“Gaoqiao Petrochemical”) and INEOS Investment (Shanghai) Company Limited (“INEOS Shanghai”) entered into an equity transfer agreement on 28 July 2022. According to the agreement, the Company and Gaoqiao Petrochemical transferred 15% and 35% equity interests in Shanghai SECCO Petrochemical Co., Ltd. (“Shanghai SECCO”) to INEOS Shanghai respectively at a total consideration of RMB 10,863. The above transactions were considered and approved by the 10th Session of 8th Directorate Meeting of the Company. The transactions were completed on 28 December 2022 and the Company lost control over Shanghai SECCO. The Group accounted for its remaining 50% equity interest retained in Shanghai SECCO, at fair value upon initial recognition, as an interest in a joint venture from the date when control was lost. The investment income from disposal of Shanghai SECCO is RMB 13,697. |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAX EXPENSE | |
INCOME TAX EXPENSE | 11. INCOME TAX EXPENSE Income tax expense in the consolidated income statements represents: Years ended December 31, 2020 2021 2022 RMB RMB RMB Current tax - Provision for the year 14,334 17,522 18,796 - Adjustment of prior years (117) (462) (1,757) Deferred taxation (Note 25) (7,873) 6,258 1,718 6,344 23,318 18,757 11. INCOME TAX EXPENSE (Continued) Reconciliation between actual income tax expense and the expected income tax expense at applicable statutory tax rates is as follows: Years ended December 31, 2020 2021 2022 RMB RMB RMB Earnings before income tax 48,615 109,169 94,400 Expected PRC income tax expense at a statutory tax rate of 25% 12,154 27,292 23,600 Tax effect of non-deductible expenses 3,281 5,948 4,509 Tax effect of non-taxable income (8,330) (8,096) (5,827) Tax effect of preferential tax rate (i) (1,011) (2,766) (3,091) Effect of income taxes at foreign operations (730) (222) (128) Tax effect of utilization of previously unrecognized tax losses and temporary differences (65) (701) (850) Tax effect of tax losses not recognized 1,087 1,391 2,243 Write-down of deferred tax assets 75 934 58 Adjustment of prior years (117) (462) (1,757) Actual income tax expense 6,344 23,318 18,757 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 2022. According to Announcement [2020] No. 23 of the Ministry of Finance (“ MOF”) “Announcement of the MOF, the State Taxation Administration and the National Development and Reform Commission on continuation of the income tax policy of western development enterprises”, the preferential tax rate of 15% extends from January 1, 2021 to December 31, 2030. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2022 | |
OTHER COMPREHENSIVE INCOME. | |
OTHER COMPREHENSIVE INCOME | 12. OTHER COMPREHENSIVE INCOME Years ended December 31, 2020 2021 2022 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 9,207 (2,295) 6,912 15,659 (3,881) 11,778 6,667 (1,675) 4,992 Reclassification adjustments for amounts transferred to the consolidated income statements 198 (37) 161 8,858 (1,618) 7,240 8,127 (1,482) 6,645 Net movement during the year recognized in other comprehensive income (i) 9,405 (2,332) 7,073 24,517 (5,499) 19,018 14,794 (3,157) 11,637 Changes in the fair value of instruments at fair value through other comprehensive income (6) (4) (10) (6) 2 (4) (79) 12 (67) Transfer of loss on disposal of equity investments at fair value through other comprehensive income to retained earnings (12) — (12) — — — — — — Net movement during the year recognized in other comprehensive income (18) (4) (22) (6) 2 (4) (79) 12 (67) Cost of hedging reserve 162 — 162 (220) — (220) 149 — 149 Share of other comprehensive (2,441) — (2,441) 441 — 441 2,856 — 2,856 Foreign currency translation differences (4,457) — (4,457) (1,728) — (1,728) 7,254 — 7,254 Other comprehensive income 2,651 (2,336) 315 23,004 (5,497) 17,507 24,974 (3,145) 21,829 Note: (i) As at December 31, 2021 and 2022, cash flow hedge reserve amounted to a gain of RMB 7,244 and a gain of RMB 3,079 , respectively, of which a gain of RMB 7,214 and a gain of RMB 3,024 were attributable to owners of the Company. |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
BASIC AND DILUTED EARNINGS PER SHARE | |
BASIC AND DILUTED EARNINGS PER SHARE | 13. BASIC AND DILUTED EARNINGS PER SHARE The calculation of basic earnings per share for the years ended December 31, 2020, 2021 and 2022 is based on the net income attributable to ordinary owners of the Company of RMB 33,443, RMB 71,975 and RMB 66,153, respectively, and the weighted average number of shares of 121,071,209,646, 121,071,209,646 and 120,889,248,735, respectively. The calculation of diluted earnings per share for the years ended December 31, 2020, 2021 and 2022 is based on the net income attributable to ordinary owners of the Company (diluted) of RMB 33,443, RMB 71,975 and RMB 66,153, respectively, and the weighted average number of shares of 121,071,209,646, 121,071,209,646 and 120,889,248,735, respectively, calculated as follows: 13. BASIC AND DILUTED EARNINGS PER SHARE (Continued) (i) 2020 2021 2022 RMB RMB RMB Net income attributable to ordinary owners of the Company 33,443 71,975 66,153 Net income attributable to ordinary owners of the Company (diluted) 33,443 71,975 66,153 (ii) 2020 2021 2022 Number of Number of Number of shares shares shares Weighted average number of shares as at December 31 121,071,209,646 121,071,209,646 120,889,248,735 Weighted average number of shares (diluted) as at December 31 121,071,209,646 121,071,209,646 120,889,248,735 |
DERIVATIVE FINANCIAL ASSETS AND
DERIVATIVE FINANCIAL ASSETS AND DERIVATIVE FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
DERIVATIVE FINANCIAL ASSETS AND DERIVATIVE FINANCIAL LIABILITIES | |
DERIVATIVE FINANCIAL ASSETS AND DERIVATIVE FINANCIAL LIABILITIES | 14. DERIVATIVE FINANCIAL ASSETS AND DERIVATIVE FINANCIAL LIABILITIES Derivative financial assets and derivative financial liabilities of the Group are primarily commodity futures and swaps contracts. See Note 40. |
TRADE ACCOUNTS RECEIVABLE
TRADE ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
Trade Accounts Receivable [Abstract] | |
TRADE ACCOUNTS RECEIVABLE | 15. TRADE ACCOUNTS RECEIVABLE December 31, 2021 2022 RMB RMB Amounts due from third parties 30,159 38,942 Amounts due from Sinopec Group Company and fellow subsidiaries 2,199 7,261 Amounts due from associates and joint ventures 6,536 4,240 38,894 50,443 Less: Loss allowance for ECLs (4,033) (4,079) 34,861 46,364 The ageing analysis of trade accounts receivable (net of loss allowance for ECLs) is as follows: December 31, 2021 2022 RMB RMB Within one year 34,180 46,039 Between one and two years 442 152 Between two and three years 221 88 Over three years 18 85 34,861 46,364 15. TRADE ACCOUNTS RECEIVABLE (Continued) Loss allowance for ECLs are analyzed as follows: 2020 2021 2022 RMB RMB RMB Balance as at January 1 1,848 3,860 4,033 Provision for the year 2,173 436 417 Written back for the year (68) (127) (561) Written off for the year (23) (30) (49) Others (70) (106) 239 Balance as at December 31 3,860 4,033 4,079 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. 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 40. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES. | |
INVENTORIES | 16. INVENTORIES December 31, 2021 2022 RMB RMB Crude oil and other raw materials 109,940 139,307 Work in progress 15,701 14,536 Finished goods 84,174 93,994 Spare parts and consumables 2,515 2,987 212,330 250,824 Less: Allowance for diminution in value of inventories (4,897) (6,583) 207,433 244,241 Allowance for diminution in value of inventories is analyzed as follows: 2020 2021 2022 RMB RMB RMB Balance as at January 1 2,597 3,107 4,897 Allowance for the year 11,689 3,148 6,407 Reversal of allowance (333) (18) (85) Written off (10,795) (1,300) (4,530) Others (51) (40) (106) Balance as at December 31 3,107 4,897 6,583 During the years ended December 31, 2020, 2021 and 2022, the costs of inventories recognized as an expense in the consolidated income statements were RMB 1,657,227, RMB 2,177,141 and RMB 2,774,951, respectively. Such costs include the write-down of inventories of RMB 11,689, RMB 3,148 and RMB 6,407, respectively, and the reversal of write-down of inventories of RMB 333, RMB 18 and RMB 85, 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 income statements. The write-down of inventories which were realized primarily with the sales of inventories for the years ended December 31, 2020, 2021 and 2022 were RMB 10,795, RMB 1,300 and RMB 4,530. The write-down of inventories for the year ended December 31, 2022 was mainly related to finished goods and raw materials. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 17. PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2021 2022 RMB RMB Receivables 35,918 27,311 Advances to suppliers 9,267 7,956 Value-added input tax to be deducted 19,137 25,355 Prepaid income tax 5,109 4,017 69,431 64,639 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 18. PROPERTY, PLANT AND EQUIPMENT Equipment, Plants and Oil and gas machinery buildings properties and others Total RMB RMB RMB RMB Cost: Balance as at January 1, 2021 138,550 757,592 996,702 1,892,844 Additions 509 2,192 5,177 7,878 Transferred from construction in progress 5,487 40,357 65,182 111,026 Reclassifications 646 (617) (29) — Invest into the joint ventures and associated companies (8) — (188) (196) Reclassification to other long-term assets (665) (22) (1,027) (1,714) Disposals (1,297) (5,517) (17,495) (24,309) Exchange adjustments (57) (940) (95) (1,092) Balance as at December 31, 2021 143,165 793,045 1,048,227 1,984,437 Balance as at January 1, 2022 143,165 793,045 1,048,227 1,984,437 Additions 146 4,277 3,528 7,951 Transferred from construction in progress 8,832 40,397 72,738 121,967 Reclassifications 1,042 (289) (753) — Invest into the joint ventures and associated companies (64) — (150) (214) Reclassification to other long-term assets (66) (50) (1,417) (1,533) Disposals (830) (429) (17,169) (18,428) Exchange adjustments 207 3,768 321 4,296 Balance as at December 31, 2022 152,432 840,719 1,105,325 2,098,476 Accumulated depreciation and impairment losses: Balance as at January 1, 2021 63,540 620,720 614,969 1,299,229 Depreciation for the year 4,586 39,670 48,568 92,824 Impairment losses for the year 742 1,904 6,774 9,420 Reclassifications 185 (410) 225 — Invest into the joint ventures and associated companies (5) — (133) (138) Reclassification to other long-term assets (82) (7) (170) (259) Written back on disposals (771) (135) (13,668) (14,574) Exchange adjustments (29) (904) (57) (990) Balance as at December 31, 2021 68,166 660,838 656,508 1,385,512 Balance as at January 1, 2022 68,166 660,838 656,508 1,385,512 Depreciation for the year 4,736 31,059 50,383 86,178 Impairment losses for the year 312 2,754 2,016 5,082 Reclassifications 259 (209) (50) — Invest into the joint ventures and associated companies (20) — (60) (80) Reclassification to other long-term assets (25) (40) (160) (225) Written back on disposals (734) (406) (11,465) (12,605) Exchange adjustments 101 3,616 197 3,914 Balance as at December 31, 2022 72,795 697,612 697,369 1,467,776 Net book value: Balance as at January 1, 2021 75,010 136,872 381,733 593,615 Balance as at December 31, 2021 74,999 132,207 391,719 598,925 Balance as at December 31, 2022 79,637 143,107 407,956 630,700 The Group compares the carrying amount of individual cash-generating units which were grouped for the property, plant and equipment related to oil and gas producing activities with its value in use, using a discounted cash flow forecast prepared based on the future production profiles included in the oil and gas reserve reports, and recorded impairment losses amounting to RMB 2,467 and RMB 2,891 for the years ended 31 December 2021 and 2022. The additions to oil and gas properties of the Group for the years ended December 31, 2021 and 2022 included RMB 2,163 and RMB 4,277 respectively, of estimated dismantlement costs for site restoration. 18. PROPERTY, PLANT AND EQUIPMENT (Continued) As at December 31, 2021 and 2022, the Group had no individual substantial property, plant and equipment which have been pledged. As at December 31, 2021 and 2022, the Group had no individual significant property, plant and equipment which were temporarily idle or pending for disposal. As at December 31, 2021 and 2022, the Group had no individual significant fully depreciated property, plant and equipment which were still in use. |
CONSTRUCTION IN PROGRESS
CONSTRUCTION IN PROGRESS | 12 Months Ended |
Dec. 31, 2022 | |
CONSTRUCTION IN PROGRESS. | |
CONSTRUCTION IN PROGRESS | 19. CONSTRUCTION IN PROGRESS 2021 2022 RMB RMB Balance as at January 1 125,525 155,939 Additions 159,729 180,741 Dry hole costs written off (7,702) (6,416) Transferred to property, plant and equipment (111,026) (121,967) Reclassification to other long-term assets (10,302) (11,492) Impairment losses for the year (144) (581) Disposals and others (107) (240) Exchange adjustments (34) 61 Balance as at December 31 155,939 196,045 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: 2020 2021 2022 RMB RMB RMB At beginning of year 8,961 11,129 12,255 Additions, pending the determination of proved reserves 10,779 12,666 16,637 Transferred to oil and gas properties based on the determination of proved reserves (3,687) (6,208) (6,233) Dry hole costs written off (4,924) (5,332) (5,597) At end of year 11,129 12,255 17,062 The above disclosure did not include amounts that were capitalized and subsequently expensed in the same year. Aging of capitalized exploratory well costs based on the date the drilling was completed are analyzed as follows: December 31, 2020 2021 2022 RMB RMB RMB One year or less 10,586 11,168 14,879 Over one year 543 1,087 2,183 11,129 12,255 17,062 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, 2020, 2021 and 2022 amounted to RMB 3,166, RMB 4,174 and RMB 3,478, respectively. |
RIGHT-OF-USE ASSETS
RIGHT-OF-USE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
RIGHT-OF-USE ASSETS | |
RIGHT-OF-USE ASSETS | 20. RIGHT-OF-USE ASSETS Land Others Total RMB RMB RMB Cost: Balance as at January 1, 2021 253,355 40,701 294,056 Additions 13,263 9,650 22,913 Decreases (2,862) (3,430) (6,292) Balance as at December 31, 2021 263,756 46,921 310,677 Balance as at January 1, 2022 263,756 46,921 310,677 Additions 10,981 9,108 20,089 Decreases (5,610) (4,229) (9,839) Balance as at December 31, 2022 269,127 51,800 320,927 Accumulated depreciation: Balance as at January 1, 2021 17,563 10,481 28,044 Additions 9,966 6,863 16,829 Decreases (407) (2,197) (2,604) Balance as at December 31, 2021 27,122 15,147 42,269 Balance as at January 1, 2022 27,122 15,147 42,269 Additions 10,045 7,519 17,564 Decreases (1,903) (1,859) (3,762) Balance as at December 31, 2022 35,264 20,807 56,071 Net book value: Balance as at January 1, 2021 235,792 30,220 266,012 Balance as at December 31, 2021 236,634 31,774 268,408 Balance as at December 31, 2022 233,863 30,993 264,856 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL | |
GOODWILL | 21. GOODWILL December 31, 2021 2022 RMB RMB Cost 16,455 14,325 Less: Accumulated impairment losses (7,861) (7,861) 8,594 6,464 21. GOODWILL (Continued) Impairment tests for cash-generating units containing goodwill Goodwill is allocated to the following Group’s cash-generating units: December 31, 2021 2022 PRINCIPAL ACTIVITIES RMB RMB Sinopec Zhenhai Refining and Chemical Branch Manufacturing of intermediate petrochemical products and petroleum products 4,043 4,043 Sinopec Beijing Yanshan Petrochemical Branch Manufacturing of intermediate petrochemical products and petroleum products 1,004 1,004 Shanghai SECCO Production and sale of petrochemical products 2,541 — Other units without individually significant goodwill 1,006 1,417 8,594 6,464 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. The pre- tax discount rates reflect specific risks relating to the cash generating unit. For impairment test of the goodwill, the pre-tax discount rates ranged 11.4% to 11.7% and 10.1% to 12.2% for the years ended December 31, 2021 and 2022 were used by management, respectively. Based on the estimated recoverable amount, no major impairment loss was recognized for the year ended December 31, 2022. Key assumptions used for cash flow forecasts for these cash generating units are the sales volume and gross margin. The sales volume was based on the production capacity and/or the sales volume in the period immediately before the budget period. The sales price was based on the future trend of the prices of crude oil and petrochemical products. The budgeted gross margin was based on the gross margin achieved in the period immediately before the budget period. |
INTEREST IN ASSOCIATES
INTEREST IN ASSOCIATES | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST IN ASSOCIATES | |
INTEREST IN ASSOCIATES | 22. 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 % % China Oil & Gas Pipeline Network Corporation (“PipeChina”) (i) Incorporated Registered capital RMB 500,000 million 9.42 4.58 Operation of oil and natural gas pipeline 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 Sinopec Capital Co.,Ltd. (“Sinopec Capital”) Incorporated Registered capital RMB 10,000 million 49.00 — Project and equity investment, investment management, investment consulting, self-owned equity management PRC PRC 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 10,002 — 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 PipeChina Sinopec Finance Sinopec Capital Synergetic Energy CIR December 31, December 31, December 31, December 31, December 31, 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets 86,335 104,889 194,458 212,850 13,140 14,444 3,532 3,212 576 885 Non-current assets 768,161 816,301 55,086 57,394 102 249 51,331 51,035 870 1,106 Current liabilities (136,150) (132,266) (217,987) (236,840) (28) (101) (8,577) (3,811) (822) (714) Non-current liabilities (103,243) (199,675) (602) (673) (676) (990) (22,216) (23,435) (144) (138) Net assets 615,103 589,249 30,955 32,731 12,538 13,602 24,070 27,001 480 1,139 Net assets attributable to owners of the Company 526,241 525,235 30,955 32,731 12,538 13,602 24,070 27,001 480 1,139 Net assets attributable to non-controlling interests 88,862 64,014 — — — — — — — — Share of net assets from associates 73,674 73,533 15,168 16,038 6,144 6,665 9,327 10,463 240 570 Carrying Amounts 73,674 73,533 15,168 16,038 6,144 6,665 9,327 10,463 240 570 Summarized statement of comprehensive income Year ended PipeChina(ii) Sinopec Finance Sinopec Capital Zhongtian Synergetic Energy CIR December 31 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 22,766 101,572 112,832 4,742 5,177 5,636 2 2 5 11,707 16,959 17,551 1,252 1,826 2,090 Net income for the year 6,444 29,776 31,908 2,027 2,168 2,338 1,278 990 1,281 551 4,184 4,562 181 461 574 Other comprehensive income — 2 — (372) 26 89 — — (68) — — — (308) 3 85 Total comprehensive income 6,444 29,778 31,908 1,655 2,194 2,427 1,278 990 1,213 551 4,184 4,562 (127) 464 659 Dividends declared by associates — 442 2,019 — 490 319 — — 73 284 86 632 2,517 1,152 - Share of net income from associates 709 3,205 3,670 993 1,062 1,145 626 485 627 214 1,621 1,768 91 231 287 Share of other comprehensive income from associates (iii) — — — (182) 13 44 — — (33) — — — (154) 2 43 The share of net income for years ended December 31, 2020, 2021 and 2022 in all individually immaterial associates accounted for using equity method in aggregate were RMB 3,444, RMB 7,283 and 6,844, respectively. The share of other comprehensive income for the years ended December 31, 2020, 2021 and 2022 in all individually immaterial associates accounted for using equity method in aggregate were a loss of RMB 1,101, a profit of RMB 271 and a loss of RMB 244, respectively. 22. INTEREST IN ASSOCIATES (Continued) The carrying amount as at December 31, 2021 and 2022 of all individually immaterial associates accounted for using equity method in aggregate were RMB 44,176 and RMB 51,881, respectively. Notes: (i) The Group has a member in the Board of Directors of PipeChina. According to the structure and the resolution mechanism of the Board of Directors, the Group can exercise significant influence on PipeChina. (ii) The summarized statement of comprehensive income for the year 2020 presents the operating results from the date when the Group can exercise significant influence on PipeChina to December 31, 2020. (iii) Including foreign currency translation differences. |
INTEREST IN JOINT VENTURES
INTEREST IN JOINT VENTURES | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST IN JOINT VENTURES | |
INTEREST IN JOINT VENTURES | 23. 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 Country of issued and paid equity held by the Company’s Principal 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 12,704 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 Sinopec SABIC Tianjin Petrochemical Company Limited (“Sinopec SABIC Tianjin”) PRC Registered capital RMB 10,520 million — 50.00 Manufacturing and distribution of petrochemical products PRC Shanghai SECCO PRC Registered capital RMB 3,115 million 15.00 35.00 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 Shanghai FREP BASF-YPC Taihu Tianjin SECCO* December 31, December 31, December 31, December 31, December 31, 2021 2022 2021 2022 2021 2022 2021 2022 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets Cash and cash equivalents 6,562 3,733 5,375 3,061 1,258 1,625 4,820 4,506 1,323 Other current assets 9,217 11,311 6,953 5,993 2,188 15,269 3,437 2,554 3,647 Total current assets 15,779 15,044 12,328 9,054 3,446 16,894 8,257 7,060 4,970 Non-current assets 13,744 12,708 9,336 9,244 14,032 10,488 18,835 18,466 26,677 Current liabilities Current financial liabilities (1,177) (829) (77) (63) (32) (55) (597) (2,950) (6,609) Other current liabilities (5,008) (9,951) (2,546) (2,245) (1,931) (2,727) (3,547) (3,282) (2,368) Total current liabilities (6,185) (10,780) (2,623) (2,308) (1,963) (2,782) (4,144) (6,232) (8,977) Non-current liabilities Non-current financial liabilities (6,857) (3,742) — — (85) (157) (7,599) (6,393) — Other non-current liabilities (242) (237) (92) (107) (1,439) (1,852) (382) (635) (944) Total non-current liabilities (7,099) (3,979) (92) (107) (1,524) (2,009) (7,981) (7,028) (944) Net assets 16,239 12,993 18,949 15,883 13,991 22,591 14,967 12,266 21,726 Net assets attributable to owners of the Company 16,239 12,993 18,949 15,883 13,523 21,941 14,967 12,266 21,726 Net assets attributable to non-controlling interests — — — — 468 650 — — — Share of net assets from joint ventures 8,120 6,497 7,580 6,353 6,626 10,751 7,484 6,133 10,863 Carrying Amounts 8,120 6,497 7,580 6,353 6,626 10,751 7,484 6,133 10,863 23. INTEREST IN JOINT VENTURES (Continued) Summarized statement of comprehensive income Year ended FREP BASF-YPC Taihu Sinopec SABIC Tianjin December 31, 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 38,691 47,224 59,347 15,701 27,499 25,076 9,528 15,190 19,542 14,881 24,631 24,294 Depreciation, depletion and amortization (2,222) (2,789) (1,822) (1,244) (1,467) (1,431) (541) (667) (882) (1,085) (1,164) (1,270) Interest income 118 147 107 27 52 116 291 451 975 183 209 144 Interest expense (535) (411) (338) (16) (5) (7) (20) (107) (274) (131) (89) (111) Earning/(loss) before income tax 520 2,261 (2,004) 1,518 8,218 3,542 2,304 2,864 1,657 954 1,393 (2,396) Income tax expense (87) (597) 578 (379) (2,054) (885) (378) (601) (201) (236) (407) 603 Net income/(loss) for the year 433 1,664 (1,426) 1,139 6,164 2,657 1,926 2,263 1,456 718 986 (1,793) Other comprehensive income — — — — — — (3,368) (123) 7,144 — — — Total comprehensive income 433 1,664 (1,426) 1,139 6,164 2,657 (1,442) 2,140 8,600 718 986 (1,793) Dividends declared by joint ventures 300 128 910 691 454 2,462 — — — — 500 454 Share of net income/(loss) from joint ventures 217 832 (713) 456 2,466 1,063 911 1,081 703 359 493 (897) Share of other comprehensive income from joint ventures (i) — — — — — — (1,593) (60) 3,422 — — — * The share of net income and other comprehensive income for the period from 29 December 2022 to 31 December 2022 from Shanghai SECCO was immaterial. The share of net income for the years ended December 31, 2020, 2021 and 2022 in all individually immaterial joint ventures accounted for using equity method in aggregate were a profit of RMB 993, a profit of RMB 4,494 and a loss of RMB 18, respectively. The share of other comprehensive income for the years ended December 31, 2020, 2021 and 2022 in all individually immaterial joint ventures accounted for using equity method in aggregate were a profit of RMB 808, a profit of RMB 215 and a loss of RMB 376, respectively. The carrying amount as at December 31, 2021 and 2022 of all individually immaterial joint ventures accounted for using equity method in aggregate were RMB 30,640 and RMB 34,194, respectively. Note: (i) Including foreign currency translation differences. |
FINANCIAL ASSETS AT FAIR VALUE
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 24. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME December 31, 2021 2022 RMB RMB Non-current assets Unlisted equity instruments 588 616 Listed equity instruments 179 114 Current assets Trade accounts receivable and bills receivable (i) 5,939 3,507 6,706 4,237 Note: (i) As at December 31, 2021 and 2022, bills receivable and certain trade accounts receivable were classified as financial assets at fair value through other comprehensive income, as relevant business model is achieved both by collecting contractual cash flows and selling of these assets. |
DEFERRED TAX ASSETS AND LIABILI
DEFERRED TAX ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
DEFERRED TAX ASSETS AND LIABILITIES | |
DEFERRED TAX ASSETS AND LIABILITIES | 25. DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets and liabilities before offset are attributable to the items detailed in the table below: Assets Liabilities December 31, December 31, 2021 2022 2021 2022 RMB RMB RMB RMB Receivables and inventories 3,763 4,271 — (17) Payables 2,858 3,091 — — Cash flow hedges 258 85 (2,709) (736) Property, plant and equipment 16,777 15,714 (15,037) (16,519) Tax losses carried forward 4,749 4,643 — — Financial assets at fair value through other comprehensive income 127 131 (9) (6) Intangible assets 1,008 1,067 (492) (85) Others 1,056 1,395 (870) (1,161) Deferred tax assets/(liabilities) 30,596 30,397 (19,117) (18,524) The offsetting amount between deferred tax assets and liabilities are as follows: December 31, 2021 2022 RMB RMB Deferred tax assets 11,207 10,445 Deferred tax liabilities 11,207 10,445 Deferred tax assets and liabilities after the offsetting adjustments are as follows: December 31, 2021 2022 RMB RMB Deferred tax assets 19,389 19,952 Deferred tax liabilities 7,910 8,079 25. DEFERRED TAX ASSETS AND LIABILITIES (Continued) As at December 31, 2021 and 2022, certain subsidiaries of the Company did not recognize deferred tax of deductible loss carried forward of RMB 18,342 and RMB 21,268, respectively, of which RMB 5,564 and RMB 8,972 were incurred for the years ended December 31, 2021 and 2022, respectively, because it was not probable that the future taxable profits will be available. These deductible losses carried forward of RMB 1,875, RMB 1,669, RMB 3,442, RMB 5,310 and RMB 8,972 will expire in 2023, 2024, 2025, 2026, 2027 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. Movements in the deferred tax assets and liabilities are as follows: Recognized in Recognized in Balance Balance as at consolidated other Transferred as at January 1, income comprehensive from December 31, 2020 statement income Others reserve 2020 RMB RMB RMB RMB RMB RMB Receivables and inventories 2,546 (122) (12) (1) — 2,411 Payables 1,142 144 — — — 1,286 Cash flow hedges (268) (42) (2,316) — (4) (2,630) Property, plant and equipment 4,146 (2,244) 127 349 — 2,378 Tax losses carried forward 3,594 9,960 (84) (148) — 13,322 Financial assets at fair value through other comprehensive income 124 (4) (4) — — 116 Intangible assets 87 19 — 246 — 352 Others (564) 162 24 73 — (305) Net deferred tax assets/(liabilities) 10,807 7,873 (2,265) 519 (4) 16,930 Recognized in Recognized in Balance Balance as at consolidated other Transferred as at January 1, income comprehensive from December 31, 2021 statement income Others reserve 2021 RMB RMB RMB RMB RMB RMB Receivables and inventories 2,411 1,378 (26) — — 3,763 Payables 1,286 1,572 — — — 2,858 Cash flow hedges (2,630) (203) (5,499) — 5,881 (2,451) Property, plant and equipment 2,378 (1,004) 41 325 — 1,740 Tax losses carried forward 13,322 (8,554) (19) — — 4,749 Financial assets at fair value through other comprehensive income 116 — 2 — — 118 Intangible assets 352 63 — 101 — 516 Others (305) 490 (3) 4 — 186 Net deferred tax assets/(liabilities) 16,930 (6,258) (5,504) 430 5,881 11,479 Recognized in Recognized in Balance Balance as at consolidated other Transferred as at January 1, income comprehensive from December 31, 2022 statement income Others reserve 2022 RMB RMB RMB RMB RMB RMB Receivables and inventories 3,763 514 — (23) — 4,254 Payables 2,858 233 — — — 3,091 Cash flow hedges (2,451) 203 (3,157) (13) 4,767 (651) Property, plant and equipment 1,740 (3,341) — 796 — (805) Tax losses carried forward 4,749 525 — (631) — 4,643 Financial assets at fair value through other comprehensive income 118 (5) 12 — — 125 Intangible assets 516 80 — 386 — 982 Others 186 73 — (25) — 234 Net deferred tax assets/(liabilities) 11,479 (1,718) (3,145) 490 4,767 11,873 |
LONG-TERM PREPAYMENTS AND OTHER
LONG-TERM PREPAYMENTS AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM PREPAYMENTS AND OTHER ASSETS | |
LONG-TERM PREPAYMENTS AND OTHER ASSETS | 26. LONG-TERM PREPAYMENTS AND OTHER ASSETS December 31, 2021 2022 RMB RMB Operating rights of service stations 29,714 28,009 Long-term receivables from and prepayment to Sinopec Group Company and fellow subsidiaries 1,520 3,235 Prepayments for construction projects to third parties 7,470 7,505 Others (i) 31,326 34,063 70,030 72,812 Note: (i) Others mainly comprise catalyst expenditures and improvement expenditures of property, plant and equipment. 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: 2021 2022 RMB RMB Operating rights of service stations Cost: Balance as at January 1 53,567 53,791 Additions 912 880 Decreases (688) (541) Balance as at December 31 53,791 54,130 Accumulated amortization: Balance as at January 1 21,711 24,077 Additions 2,699 2,301 Decreases (333) (257) Balance as at December 31 24,077 26,121 Net book value as at December 31 29,714 28,009 |
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, 2022 | |
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES | |
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES | 27. SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES Short-term debts represent: December 31, 2021 2022 RMB RMB Third parties’ debts Short-term bank loans 24,959 14,461 RMB denominated 24,959 14,325 USD denominated — 136 Current portion of long-term bank loans 3,293 13,876 RMB denominated 3,281 13,875 USD denominated 12 1 Current portion of long-term corporate bonds 7,000 30,700 RMB denominated 7,000 30,700 35,252 59,037 Loans from Sinopec Group Company and fellow subsidiaries Short-term loans 2,407 6,852 RMB denominated 1,320 5,911 USD denominated 934 906 European Dollar (“EUR”) denominated 153 35 Current portion of long-term loans 466 440 RMB denominated 466 440 2,873 7,292 38,125 66,329 The Group’s weighted average interest rates on short-term loans were 2.72% and 2.63% per annum as at December 31, 2021 and 2022, respectively. The above borrowings are unsecured. 27. SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES (Continued) Long-term debts represent: Interest rate and final maturity December 31, 2021 2022 RMB RMB Third parties’ debts Long-term bank loans RMB denominated Interest rates ranging from 1.00% to 4.66% per annum as at December 31, 2022 with maturities through 2040 38,880 86,532 USD denominated Interest rates at 0.00% per annum as at December 31, 2022 with maturities through 2038 64 53 38,944 86,585 Corporate bonds RMB denominated Fixed interest rates ranging from 2.20% to 3.20% per annum as at December 31, 2022 with maturities through 2026 38,522 31,534 USD denominated Fixed interest rates ranging from 3.13 % to 4.25 % per annum as at December 31, 2022 with maturities through 2043 11,127 12,163 49,649 43,697 Total third parties’ long-term debts 88,593 130,282 Less: Current portion (10,293) (44,576) 78,300 85,706 Long-term loans from Sinopec Group Company and fellow subsidiaries RMB denominated Interest rates ranging from 1.08% to 5.23% per annum as at December 31, 2022 with maturities through 2037 12,988 22,695 USD denominated Interest rates at 1.65% per annum as at December 31, 2022 with maturities in 2027 1,168 — Less: Current portion (466) (440) 13,690 22,255 91,990 107,961 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. |
LEASE LIABILITIES
LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
LEASE LIABILITIES | |
LEASE LIABILITIES | 28. LEASE LIABILITIES December 31, 2021 2022 RMB RMB Lease liabilities Current 15,173 16,004 Non-current 170,233 166,407 185,406 182,411 |
TRADE ACCOUNTS PAYABLE AND BILL
TRADE ACCOUNTS PAYABLE AND BILLS PAYABLE | 12 Months Ended |
Dec. 31, 2022 | |
TRADE ACCOUNTS PAYABLE AND BILLS PAYABLE | |
TRADE ACCOUNTS PAYABLE AND BILLS PAYABLE | 29 . TRADE ACCOUNTS PAYABLE AND BILLS PAYABLE December 31, 2021 2022 RMB RMB Amounts due to third parties 193,547 224,994 Amounts due to Sinopec Group Company and fellow subsidiaries 4,227 25,358 Amounts due to associates and joint ventures 6,145 8,290 203,919 258,642 Bills payable 11,721 10,782 Trade accounts payable and bills payable measured at amortized cost 215,640 269,424 |
CONTRACT LIABILITIES
CONTRACT LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
CONTRACT LIABILITIES. | |
CONTRACT LIABILITIES | 30. CONTRACT LIABILITIES As at December 31, 2021 and 2022, the Group’s contract liabilities primarily represent advances from customers. Related performance obligations are expected to be satisfied and revenue is recognized within one year. |
OTHER PAYABLES
OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES | |
OTHER PAYABLES | 31. OTHER PAYABLES December 31, 2021 2022 RMB RMB Salaries and welfare payable 14,048 13,617 Interest payable 822 549 Payables for constructions 54,596 68,492 Other payables 93,764 71,833 Taxes other than income tax 76,458 23,655 239,688 178,146 |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2022 | |
PROVISIONS | |
PROVISIONS | 32. 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: 2020 2021 2022 RMB RMB RMB Balance as at January 1 42,438 43,713 40,495 Provision for the year 1,563 2,163 4,277 Accretion expenses 1,343 1,135 1,103 Decrease for the year (1,490) (6,435) (2,438) Exchange adjustments (141) (81) 162 Balance as at December 31 43,713 40,495 43,599 |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
SHARE CAPITAL | |
SHARE CAPITAL | 33. SHARE CAPITAL December 31, 2021 2022 RMB RMB Registered, issued and fully paid 95,115,471,046 listed A shares (2021: 95,557,771,046) of RMB 1.00 each 95,558 95,115 24,780,936,600 listed H shares (2021: 25,513,438,600) of RMB 1.00 each 25,513 24,781 121,071 119,896 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 exercise 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 exercise 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 exercise of conversion by the holders of the 2011 Convertible Bonds. During the year ended 31 December 2022, the Company repurchased 442,300,000 listed A shares and 732,502,000 listed H shares respectively, which had been cancelled in the year ended 31 December 2022. All A shares and H shares rank pari passu in all material aspects. 33. SHARE CAPITAL (Continued) Capital management Management optimizes the structure of the Group’s capital, which comprises of equity, debts and bonds. 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 and bonds. Management monitors capital on the basis of the debt-to-capital ratio, which is calculated by dividing long-term loans (excluding current portion) and debentures payable, 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 debentures payable, 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 10.6% and 12.1% as at December 31, 2021 and 2022, respectively. The liability-to-asset ratio of the Group was 51.6% and 52.0% as at December 31, 2021 and 2022, respectively. The schedule of the contractual maturities of loans and commitments are disclosed in Notes 27 and 34, 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, 2022 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
COMMITMENTS AND CONTINGENT LIABILITIES | 34. COMMITMENTS AND CONTINGENT LIABILITIES Capital commitments As at December 31, 2021 and 2022, the capital commitments of the Group are as follows: December 31, 2021 2022 RMB RMB Authorized and contracted for (i) 184,430 167,507 Authorized but not contracted for 90,227 94,407 274,657 261,914 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 as at December 31, 2021 and 2022 of the Group were RMB 3,648 and RMB 1,751 , 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. 34. COMMITMENTS AND CONTINGENT LIABILITIES (Continued) 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 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 231, RMB 181 and RMB 270 for the years ended December 31, 2020, 2021 and 2022, respectively. Estimated future annual payments are as follows: December 31, 2021 2022 RMB RMB Within one year 301 369 Between one and two years 112 152 Between two and three years 110 146 Between three and four years 102 115 Between four and five years 64 62 Thereafter 846 857 1,535 1,701 Contingent liabilities As at December 31, 2021 and 2022, the guarantees by the Group in respect of facilities granted to the parties below are as follows: December 31, 2021 2022 RMB RMB Joint ventures (ii) 9,117 8,927 Associates (iii) 5,746 — 14,863 8,927 Management monitors the risk that the specified debtor will default on the contract and recognizes a provision when ECLs on the financial guarantees are determined to be higher than the carrying amount in respect of the guarantees. At 31 December 2021 and 2022, the Group estimates that there is no material liability having been accrued for ECLs related to the Group’s obligation under these guarantee arrangements. Notes: (ii) As at December 31, 2021 and 2022, the Group provided a guarantee in respect to standby credit facilities granted to Zhongan United Coal Chemical Co., Ltd. (“Zhongan United”) by banks amounting to RMB 7,100 and RMB 7,100 . As at December 31, 2021 and 2022, the amount withdrawn (The portion corresponding to the shareholding ratio of the Group) by Zhongan United from banks and guaranteed by the Group was RMB 5,680 and RMB 5,254 . As at December 31, 2021 and 2022, the Group provided a guarantee in respect to standby credit facilities granted to Amur Gas Chemical Complex Limited Liability Company (“Amur Gas”) by banks amounting to RMB 23,208 and RMB 25,351 . As at December 31, 2021 and 2022 the amount withdrawn (the portion corresponding to the shareholding ratio of the Group) by Amur Gas from banks and guaranteed by the Group was RMB 3,264 and RMB 3,673 . 34. COMMITMENTS AND CONTINGENT LIABILITIES (Continued) Contingent liabilities (Continued) Notes: (Continued) As at December 31, 2021 and 2022, the Group provided a guarantee in respect to payment obligation under the raw material supply agreement of Amur Gas amount to RMB 15,493 and RMB 16,924. As at December 31, 2021 and 2022, Amur Gas has not yet incurred the relevant payment obligations and therefore the Group has no guarantee amount. The Group provided a guarantee in respect the engineering services agreement of Amur Gas. As at December 31, 2022, the engineering services agreement was terminated, accordingly the guarantee agreement was terminated. (iii) The Group provided a guarantee in respect to standby credit facilities granted to Zhongtian Synergetic Energy by banks amounting to RMB 17,050 . As at December 31, 2021, the amount withdrawn (the portion corresponding to the shareholding ratio of the Group) by Zhongtian Synergetic Energy and guaranteed by the Group was RMB 5,746 . During the year ended December 31, 2022, the guarantee provided by the Group was terminated. 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 11,368, RMB 10,968 and RMB 16,823 in the consolidated financial statements for the years ended December 31, 2020, 2021 and 2022, 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 unfavorable 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 COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2022 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | 35. BUSINESS COMBINATIONS Pursuant to resolution passed at the Director’s meeting on 26 March 2021, the Company entered into agreements with Sinopec Assets Management Corporation (“SAMC”) and Beijing Orient Petrochemical Industry Co., Ltd. (“BJOPI”), and its subsidiary, Sinopec Beihai Refining and Chemical Limited Liability Company entered into an agreement with Beihai Petrochemical Limited Liability Company of Sinopec Group (“BHP”). According to the relevant agreements, the Company proposed to acquire non equity assets such as the polypropylene devices and utility business assets of Cangzhou Branch held by SAMC, organic plant business held by BJOPI, and the pier operation platform held by BHP. Pursuant to the resolution passed at the Directors’ meeting on 29 November 2021, the Company entered into agreements with SAMC, and Sinopec Beijing Yanshan Petrochemical Co., Ltd. (“SBJYSP”), and its subsidiary, Sinopec Yizheng Chemical Fibre Company Limited entered into an agreement with SAMC. According to the relevant agreements, the Group proposed to acquire non equity assets such as thermal power, water and other business, PBT resin and other business of Yizheng Branch held by SAMC, and thermal power and other businesses held by SBJYSP. The consideration of the transaction amount to RMB 6,124. As the Company, SAMC, BJOPI, BHP and SBJYSP are all under the control of Sinopec Group Company, the transaction described above has been accounted as business combination under common control. Accordingly, the equity and assets acquired from Sinopec Group Company 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 Sinopec Group Company on a combined basis. The transactions under the after-mentioned agreements will further improve the integrated operation level of the Group, optimize the allocation of resources, reduce connected transactions on the whole, so as to enhance the comprehensive competitiveness of the Group in its business locations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 36. 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 2020 2021 2022 RMB RMB RMB Sales of goods (i) 228,307 297,381 352,691 Purchases (ii) 151,300 191,888 184,986 Transportation and storage (iii) 8,734 19,443 18,291 Exploration and development services (iv) 31,444 33,930 37,317 Production related services (v) 31,915 44,405 48,465 Ancillary and social services (vi) 2,952 1,730 — Agency commission income (vii) 160 194 173 Interest income (viii) 704 715 1,203 Interest expense (ix) 919 385 541 Net deposits placed with related parties (x) (17,585) (8,265) (3,382) Net funds (placed with)/obtained from related parties (ix) (31,144) 30,305 36,608 The amounts set out in the table above in respect of each of the years in the three-year period ended December 31 represent the relevant costs and income as determined by the corresponding contracts with the related parties. For the years ended December 31, 2021 and 2022, no individually significant right-of-use assets were leased from Sinopec Group Company and fellow subsidiaries, associates and joint ventures by the Group. The interest expense recognized for the years ended December 31, 2021 and 2022 on lease liabilities in respect of amounts due to Sinopec Group Company and fellow subsidiaries, associates and joint ventures was RMB 7,863 and RMB 7,811. For the years ended December 31, 2020, 2021 and 2022, the amount of rental the Group paid to Sinopec Group Company and fellow subsidiaries, associates and joint ventures for land are RMB 11,090, RMB 10,834 and RMB 11,051, respectively. For the years ended December 31, 2020, 2021 and 2022, the amount of rental the Group paid to Sinopec Group Company and fellow subsidiaries, associates and joint ventures for buildings are RMB 571, RMB 572 and RMB 943, respectively. For the years ended December 31, 2020, 2021 and 2022, the amount of rental the Group paid to Sinopec Group Company and fellow subsidiaries, associates and joint ventures for others are RMB 330, RMB 269 and RMB 352, respectively. As at December 31, 2021 and 2022, there was no guarantee given to banks by the Group in respect of banking facilities to Sinopec Group Company and fellow subsidiaries, associates and joint ventures, except for the guarantees disclosed in Note 34. Guarantees given to banks by the Group in respect of banking facilities to associates and joint ventures are disclosed in Note 34. 36. RELATED PARTY TRANSACTIONS (Continued) (a) Transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures (Continued) 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, and property maintenance. The term of the Cultural, Educational, Hygiene and Auxiliary Service Agreement expired on 31 December 2021, and is not renewed due to the significant decrease in the service scale after the separation and transfer of assets and business such as the Three Supplies and One Industry Assets etc. Cultural and educational services related or similar to training and auxiliary services thereunder have been incorporated into the Mutual Supply Agreement. (vii) 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. (viii) Interest income represents interest received from deposits placed with Sinopec Finance 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 at December 31, 2021 and 2022 were RMB 61,682 and RMB 65,064, respectively. (ix) Interest expense represents interest charges on the loans obtained from Sinopec Group Company and fellow subsidiaries. (x) The Group obtained loans, discounted bills and issued the acceptance bills from Sinopec Group Company and fellow subsidiaries. 36. RELATED PARTY TRANSACTIONS (Continued) (a) Transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures (Continued) 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 31 December 2022. 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 1 January 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 term of the Cultural, Educational, Hygiene and Auxiliary Service Agreement expired on 31 December 2021, and is not renewed due to the significant decrease in the service scale after the separation and transfer of assets and business such as the Three Supplies and One Industry Assets etc. Cultural and educational services related or similar to training and auxiliary services thereunder have been incorporated into the Mutual Supply 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 Sixth Supplementary Agreement on August 27, 2021, which took effect on January 1, 2022 and made adjustment to “Mutual Supply Agreement” and “Buildings Leasing Contract”, etc. 36. RELATED PARTY TRANSACTIONS (Continued) (a) Transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures (Continued) 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, 2021 2022 RMB RMB Trade accounts receivable 8,655 11,480 Financial assets at fair value through other comprehensive income 186 596 Prepaid expenses and other current assets 14,537 10,375 Long-term prepayments and other assets 3,116 8,633 Total 26,494 31,084 Trade accounts payable and bills payable 14,170 38,337 Contract liabilities 4,677 4,736 Other payables 50,649 38,312 Other long-term liabilities 2,779 5,180 Short-term loans and current portion of long-term loans from Sinopec Group Company and fellow subsidiaries 2,873 7,292 Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries 13,690 22,255 Lease liabilities (including to be paid within one year) 158,761 156,537 Total 247,599 272,649 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 27. As at and for the year ended December 31, 2022, and as at and for the year ended December 31, 2021, no individually significant loss allowance for ECLs 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, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Short-term employee benefits 5,753 4,612 9,299 Retirement scheme contributions 342 379 566 6,095 4,991 9,865 (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 37. As at December 31, 2021 and 2022, the accrual for the contribution to post-employment benefit plans was not material. 36. RELATED PARTY TRANSACTIONS (Continued) (d) 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 followings: ● sales and purchases of goods and ancillary materials; ● rendering and receiving services; ● lease of assets; ● depositing and borrowing money; and ● uses 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, 2022 | |
EMPLOYEE BENEFITS PLAN | |
EMPLOYEE BENEFITS PLAN | 37. 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 16.0% 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 8.0% 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, 2020, 2021 and 2022 were RMB 8,983, RMB 11,932 and RMB 13,190, respectively. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 38. 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 purified 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 comprises 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 other 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, income tax payable, long-term debts, loans from Sinopec Group Company and fellow subsidiaries, deferred tax liabilities and other unallocated liabilities. 38. SEGMENT REPORTING (Continued) (1) Information of reportable segmental revenues, profits or losses, assets and liabilities (Continued) Information of the Group’s reportable segments is as follows: Years ended December 31, 2020 2021 2022 RMB RMB RMB Sales of goods Exploration and production External sales 104,524 156,026 192,330 Inter-segment sales 57,513 87,298 121,912 162,037 243,324 314,242 Refining External sales 113,214 167,948 194,839 Inter-segment sales 826,219 1,212,455 1,376,425 939,433 1,380,403 1,571,264 Marketing and distribution External sales 1,062,447 1,367,605 1,660,924 Inter-segment sales 4,854 7,075 13,421 1,067,301 1,374,680 1,674,345 Chemicals External sales 322,169 424,774 449,911 Inter-segment sales 40,702 70,242 80,328 362,871 495,016 530,239 Corporate and others External sales 458,154 563,147 759,352 Inter-segment sales 430,073 732,356 1,028,800 888,227 1,295,503 1,788,152 Elimination of inter-segment sales (1,371,215) (2,109,426) (2,620,886) Sales of goods 2,048,654 2,679,500 3,257,356 Other operating revenues Exploration and production 5,718 6,674 5,169 Refining 4,633 5,161 3,875 Marketing and distribution 34,905 36,864 39,529 Chemicals 8,758 10,487 9,913 Corporate and others 2,056 2,198 2,326 Other operating revenues 56,070 61,384 60,812 Sales of goods and other operating revenues 2,104,724 2,740,884 3,318,168 38. SEGMENT REPORTING (Continued) (1) Information of reportable segmental revenues, profits or losses, assets and liabilities (Continued) Years ended December 31, 2020 2021 2022 Result RMB RMB RMB Operating (loss) /income By segment - Exploration and production (16,476) 4,685 53,716 - Refining (5,525) 65,279 12,211 - Marketing and distribution 20,828 21,204 24,537 - Chemicals 10,818 11,106 (14,127) - Corporate and others (393) (3,225) 1,318 - Elimination 4,417 (4,421) (1,820) Total segment operating income 13,669 94,628 75,835 Share of profit/(loss) from associates and joint ventures - Exploration and production 2,117 2,783 2,883 - Refining (2,516) 662 (645) - Marketing and distribution 2,200 3,731 3,142 - Chemicals 1,723 11,323 3,365 - Corporate and others 3,188 4,754 5,734 Aggregate share of profits from associates and joint ventures 6,712 23,253 14,479 Investment income - Exploration and production 13,118 55 — - Refining 14,941 (10) 35 - Marketing and distribution 8,980 3 31 - Chemicals (61) (54) 14,258 - Corporate and others 766 304 (264) Aggregate investment income 37,744 298 14,060 Net finance costs (9,510) (9,010) (9,974) Earnings before income tax 48,615 109,169 94,400 38. SEGMENT REPORTING (Continued) (1) Information of reportable segmental revenues, profits or losses, assets and liabilities (Continued) December 31, 2020 2021 2022 RMB RMB RMB Assets Segment assets - Exploration and production 354,024 371,100 412,543 - Refining 270,766 304,785 327,706 - Marketing and distribution 373,430 377,499 388,961 - Chemicals 190,789 222,803 242,794 - Corporate and others 118,458 133,961 148,014 Total segment assets 1,307,467 1,410,148 1,520,018 Interest in associates and joint ventures 188,342 209,179 233,941 Financial assets at fair value through other comprehensive income 1,525 767 730 Deferred tax assets 25,054 19,389 19,952 Cash and cash equivalents, time deposits with financial institutions 188,057 221,989 145,052 Other unallocated assets 28,451 27,783 28,947 Total assets 1,738,896 1,889,255 1,948,640 Liabilities Segment liabilities - Exploration and production 163,588 166,486 179,151 - Refining 136,980 146,763 86,428 - Marketing and distribution 234,309 228,826 237,534 - Chemicals 49,625 69,977 84,472 - Corporate and others 119,215 198,828 221,885 Total segment liabilities 703,717 810,880 809,470 Short-term debts 23,769 35,252 59,037 Income tax payable 6,586 4,809 4,725 Long-term debts 72,037 78,300 85,706 Loans from Sinopec Group Company and fellow subsidiaries 17,042 16,563 29,547 Deferred tax liabilities 8,124 7,910 8,079 Other unallocated liabilities 19,919 20,467 15,838 Total liabilities 851,194 974,181 1,012,402 38. SEGMENT REPORTING (Continued) (1) Information of reportable segmental revenues, profits or losses, assets and liabilities (Continued) Years ended December 31, 2020 2021 2022 RMB RMB RMB Capital expenditure Exploration and production 56,416 68,148 83,300 Refining 24,756 22,469 22,863 Marketing and distribution 25,403 21,897 19,140 Chemicals 28,217 51,648 58,612 Corporate and others 2,312 3,786 5,181 137,104 167,948 189,096 Depreciation, depletion and amortization Exploration and production 46,273 52,880 45,321 Refining 20,090 20,743 20,588 Marketing and distribution 23,196 23,071 23,461 Chemicals 14,830 16,093 17,716 Corporate and others 3,072 2,893 2,820 107,461 115,680 109,906 Impairment losses on long-lived assets Exploration and production 8,495 2,467 2,891 Refining 1,923 860 2 Marketing and distribution 536 1,211 415 Chemicals 3,675 5,332 1,790 Corporate and others — 165 571 14,629 10,035 5,669 (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, 2020 2021 2022 RMB RMB RMB External sales Mainland China 1,720,695 2,166,040 2,824,140 Singapore 215,846 278,024 263,087 Others 168,183 296,820 230,941 2,104,724 2,740,884 3,318,168 December31, 2020 2021 2022 RMB RMB RMB Non-current assets Mainland China 1,216,267 1,268,814 1,353,771 Others 36,782 40,551 44,739 1,253,049 1,309,365 1,398,510 |
PRINCIPAL SUBSIDIARIES
PRINCIPAL SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2022 | |
PRINCIPAL SUBSIDIARIES | |
PRINCIPAL SUBSIDIARIES | 39. PRINCIPAL SUBSIDIARIES As at December 31, 2022, 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 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 Overseas Investment Holding Limited (“SOIH”) USD 3,423 100.00 — Investment holding of overseas business Sinopec International Petroleum Exploration and Production Limited (“SIPL”) RMB 8,250 100.00 — Investment in exploration, production and sale of petroleum and natural gas 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 China International United Petroleum and Chemical Company Limited RMB 5,000 100.00 — Trading of crude oil and petrochemical products Sinopec Qingdao Petrochemical Company Limited RMB 1,595 100.00 — Manufacturing of intermediate petrochemical products and petroleum products 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 Chemical Sales Company Limited RMB 1,000 100.00 — Marketing and distribution of petrochemical products Sinopec Hainan Refining and Chemical Company Limited RMB 9,606 100.00 — Manufacturing of intermediate petrochemical products and petroleum 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 ZhongKe (Guangdong) Refinery & Petrochemical Company Limited RMB 6,397 90.30 9.70 Crude oil processing and petroleum products manufacturing Sinopec Qingdao Refining and Chemical Company Limited RMB 5,000 85.00 15.00 Manufacturing of intermediate petrochemical products and petroleum products Marketing Company RMB 28,403 70.42 29.58 Marketing and distribution of refined petroleum products Sinopec Kantons Holdings Limited (“Sinopec Kantons”) HKD 248 60.33 39.67 Provision of crude oil jetty services and natural gas pipeline transmission services Sinopec-SK (Wuhan) Petrochemical Company Limited (“Sinopec-SK”) RMB 7,193 59.00 41.00 Production, sale, research and development of petrochemical products, ethylene and downstream byproducts Gaoqiao Petrochemical RMB 10,000 55.00 45.00 Manufacturing of intermediate petrochemical products and petroleum products Sinopec Baling Petrochemical Co., Ltd. (“Baling Petrochemical”) RMB 3,000 55.00 45.00 Crude oil processing and petroleum products manufacturing 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 10,492 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 SAR 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. 39. PRINCIPAL SUBSIDIARIES (Continued) Summarized consolidated statements of financial position Shanghai Gaoqiao Marketing Company SIPL* Petrochemical Fujian Petrochemical Sinopec Kantons Petrochemical Sinopec-SK December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets 159,599 190,697 22,759 25,677 20,932 15,766 1,464 1,901 4,761 5,436 16,253 23,991 6,791 5,781 Current liabilities (193,315) (212,593) (1,430) (9,468) (15,796) (13,998) (142) (169) (196) (209) (8,668) (10,162) (8,122) (8,488) Net current (liabilities)/ assets (33,716) (21,896) 21,329 16,209 5,136 1,768 1,322 1,732 4,565 5,227 7,585 13,829 (1,331) (2,707) Non-current assets 326,437 326,095 8,954 12,869 25,988 25,370 13,208 10,215 8,195 7,902 21,308 15,602 20,650 20,251 Non-current liabilities (59,604) (57,215) (17,823) (11,892) (747) (783) (700) (707) (170) (232) (10,679) (5,385) (7,512) (7,806) Net non-current assets/(liabilities) 266,833 268,880 (8,869) 977 25,241 24,587 12,508 9,508 8,025 7,670 10,629 10,217 13,138 12,445 Net assets 233,117 246,984 12,460 17,186 30,377 26,355 13,830 11,240 12,590 12,897 18,214 24,046 11,807 9,738 Attributable to owners of the Company 157,557 166,974 6,341 10,121 15,254 13,229 6,915 5,620 7,579 7,764 10,018 13,225 6,966 5,745 Attributable to non-controlling interests 75,560 80,010 6,119 7,065 15,123 13,126 6,915 5,620 5,011 5,133 8,196 10,821 4,841 3,993 Summarized consolidated statements of comprehensive income Marketing Company SIPL* Shanghai Petrochemical Fujian Petrochemical Sinopec Kantons Gaoqiao Petrochemical Sinopec-SK Year ended December 31, 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 1,099,680 1,408,523 1,710,428 2,017 2,166 3,308 74,624 89,198 82,443 4,871 5,549 4,931 1,064 528 529 40,566 46,506 69,298 28,702 50,208 57,857 Net income/(loss) for the year 22,415 18,582 19,902 1,160 1,429 2,576 656 2,077 (2,842) 243 951 (1,925) 2,047 871 346 902 3,536 3,157 (920) 1,606 (1,101) Total comprehensive income 21,149 18,439 22,418 (720) 1,045 6,438 645 2,218 (2,665) 243 951 (1,925) 1,814 677 734 1,342 3,677 3,161 (920) 1,606 (1,101) Comprehensive income attributable to non-controlling interests 7,205 6,822 8,110 (287) 579 2,659 325 1,101 (1,318) 121 476 (962) 707 268 291 604 1,655 1,423 (377) 659 (451) Dividends paid to non-controlling interests 2,766 7,064 3,453 316 — — 649 541 548 150 64 333 175 164 169 1,759 256 984 — — 397 Summarized statement of cash flows Marketing Company SIPL* Shanghai Petrochemical Fujian Petrochemical Sinopec Kantons Gaoqiao Petrochemical Sinopec-SK Year ended December 31, 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 RMB 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 54,139 28,923 43,408 281 690 1,458 1,680 3,950 (7,459) (244) (292) 2 586 133 133 905 (1,577) (1,247) (363) 5,476 (1,538) Net cash (used in)/ generated from investing activities (40,010) 2,420 (23,490) (2,659) 15 11,824 (3,888) (2,359) 4,390 (649) 420 653 3,846 1,276 (1,153) 1,347 1,432 4,235 (2,340) (1,789) (1,556) Net cash (used in)/ generated from financing activities (12,402) (31,081) (15,984) 1,683 (1,172) (1,369) 1,682 (3,393) (1,169) 882 (142) (682) (1,250) (1,066) (434) (4,257) 146 (2,986) 2,176 (653) 1,541 Net increase/(decrease) in cash and cash equivalents 1,727 262 3,934 (695) (467) 11,913 (526) (1,802) (4,238) (11) (14) (27) 3,182 343 (1,454) (2,005) 1 2 (527) 3,034 (1,553) Cash and cash equivalents as at January 1 6,901 8,642 8,999 8,833 7,699 7,068 7,450 6,916 5,112 79 68 54 117 3,182 3,432 2,006 — 1 1,593 1,066 4,100 Effect of foreign currency exchange rate changes 14 95 271 (439) (164) 1,059 (8) (2) 15 — — — (117) (93) 246 — — — — — (3) Cash and cash equivalents as at December 31 8,642 8,999 13,204 7,699 7,068 20,040 6,916 5,112 889 68 54 27 3,182 3,432 2,224 1 1 3 1,066 4,100 2,544 *The non-controlling interests of subsidiaries which the Group holds 100% of equity interests at the end of the year are the non-controlling interests of their subsidiaries. |
FINANCIAL RISK MANAGEMENT AND F
FINANCIAL RISK MANAGEMENT AND FAIR VALUES | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES | 40. FINANCIAL RISK MANAGEMENT AND FAIR VALUES Overview Financial assets of the Group include cash and cash equivalents, time deposits with financial institutions, financial assets at fair value through profit or loss, derivative financial assets, trade accounts receivable, amounts due from Sinopec Group Company and fellow subsidiaries, amounts due from associates and joint ventures, financial assets at FVOCI and other receivables. Financial liabilities of the Group include short-term debts, loans from Sinopec Group Company and fellow subsidiaries, derivative financial liabilities, trade accounts payable and bills payable, amounts due to Sinopec Group Company and fellow subsidiaries, amounts due to associates and joint ventures, other payables, long-term debts and lease liabilities. The Group has exposure to the following risks from its uses of financial instruments: ● credit risk; ● liquidity risk; and ● market risk. 40. FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued) Overview (Continued) 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 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 deposits) 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 trade accounts receivable as at December 31, 2022, 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 a loss allowance for ECLs and actual losses have been within management’s expectations. The carrying amounts of cash and cash equivalents, time deposits with financial institutions, financial assets at fair value through profit or loss , derivative financial assets, trade accounts receivable, financial assets at FVOCI 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 receivable, financial assets at FVOCI 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 receivable and financial assets at FVOCI, the Group applies the IFRS 9 simplified approach to measuring ECLs which uses a lifetime expected loss allowance for all trade accounts receivable and financial assets at FVOCI. To measure the ECLs, trade accounts receivable and financial assets at FVOCI have been grouped based on shared credit risk characteristics and the days past due. The ECLs were calculated based on historical actual credit loss experience. The rates were considered the differences between economic conditions during the period over which the historical data has been collected, current conditions and the Group’s view of economic conditions over the expected lives of the receivables. The Group performed the calculation of ECL rates by the operating segment. 40. FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued) Credit risk (Continued) The following table provides information about the exposure to credit risk and ECLs for accounts receivable as at December 31, 2021 and 2022. Impairment provision on Impairment provision individual basis on provision matrix basis Impairment provision Gross on Weighted- carrying Carrying individual average Impairment Loss amount amount basis loss rate provision allowance December 31, 2021 RMB RMB RMB % RMB RMB Current and within 1 year past due 34,263 4,280 26 0.2 % 57 83 1 to 2 years past due 623 500 137 35.8 % 44 181 2 to 3 years past due 3,411 3,324 3,146 50.6 % 44 3,190 Over 3 years past due 597 208 190 100.0 % 389 579 Total 38,894 8,312 3,499 534 4,033 Impairment provision on Impairment provision individual basis on provision matrix basis Impairment provision Gross on Weighted- carrying Carrying individual average Impairment Loss amount amount basis loss rate provision allowance December 31, 2022 RMB RMB RMB % RMB RMB Current and within 1 year past due 46,097 7,014 2 0.1 % 56 58 1 to 2 years past due 216 29 25 20.9 % 39 64 2 to 3 years past due 269 193 148 43.4 % 33 181 Over 3 years past due 3,861 3,487 3,405 99.2 % 371 3,776 Total 50,443 10,723 3,580 499 4,079 All of the entity’s other receivables 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 there was no significant increase in credit risk for other receivables by taking into account of their past history of making payments when due and current ability to pay, and thus the impairment provision recognized during the period was limited to 12 months expected losses. 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 to 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 at December 31, 2021 and 2022, the Group has standby credit facilities with several PRC financial institutions which provide borrowings up to RMB 441,559 and RMB 454,857 on an unsecured basis, at a weighted average interest rate of 2.81% and 2.38% per annum, respectively. As at December 31, 2021 and 2022, the Group’s outstanding borrowings under these facilities were RMB 11,700 and RMB 21,313 and were included in debts, respectively. 40. FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued) Liquidity risk (Continued) The following table sets out the remaining contractual maturities at the date of the statement of financial position 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 date of the statement of financial position) and the earliest date the Group would be required to repay: December 31, 2021 Total More than More than contractual Within 1 1 year but 2 years 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 35,252 35,871 35,871 — — — Long-term debts 78,300 85,718 2,169 49,390 27,518 6,641 Loans from Sinopec Group Company and fellow subsidiaries 16,563 18,457 3,174 604 10,712 3,967 Lease liabilities 185,406 296,485 15,833 12,031 35,411 233,210 Derivative financial liabilities 3,223 3,223 3,223 — — — Trade accounts payable and bills payable 215,640 215,640 215,640 — — — Other payables 117,420 117,420 117,420 — — — 651,804 772,814 393,330 62,025 73,641 243,818 December 31, 2022 Total More than More than contractual Within 1 1 year but 2 years 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 59,037 59,774 59,774 — — — Long-term debts 85,706 94,823 2,207 13,620 68,180 10,816 Loans from Sinopec Group Company and fellow subsidiaries 29,547 32,222 7,813 4,288 13,962 6,159 Lease liabilities 182,411 299,176 16,699 12,905 36,984 232,588 Derivative financial liabilities 7,313 7,313 7,313 — — — Trade accounts payable and bills payable 269,424 269,424 269,424 — — — Other payables 121,716 121,716 121,716 — — — 755,154 884,448 484,946 30,813 119,126 249,563 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. (a) 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 does not have significant financial instruments that are denominated in foreign currencies other than the functional currencies of respective entities as at December 31, and consequently does not have significant exposure to foreign currency risk. 40. FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued) (b) Interest rate risk The Group’s interest rate risk exposure arises primarily from its short-term and long-term debts and loans from Sinopec Group Company and fellow subsidiaries. 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 and terms of repayment of short-term and long-term debts, and loans from Sinopec Group Company and fellow subsidiaries of the Group are disclosed in Note 27. As at December 31, 2021, 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 for the year by approximately RMB 254. As at December 31, 2022, 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 for the year by approximately RMB 524. This sensitivity analysis has been determined assuming that the change of interest rates was applied to the Group’s debts outstanding at the date of the statement of financial position with exposure to cash flow interest rate risk. The analysis is performed on the same basis for 2021. (c) 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 contracts, to manage a portion of this risk. Based on the dynamic study and judging of the market, combined with the resource demand and production and operation plan, the group evaluate and monitor the market risk exposure caused by transaction positions, and continuously manage and hedge the risk of commodity price fluctuation caused by market changes. As at December, 31, 2021 and 2022, the Group had certain commodity contracts of crude oil, refined oil products and chemical products designated as qualified cash flow hedges and economic hedges. As at December 31, 2021 and 2022, the fair value of such derivative hedging financial instruments is derivative financial assets of RMB 18,359 and RMB 19,328, respectively, and derivative financial liabilities of RMB 3,214 and RMB 7,235, respectively. As at December 31, 2021, 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 year by approximately RMB 2,996 and decrease/increase the Group’s other reserves by approximately RMB 1,160. As at December 31, 2022, 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 year by approximately RMB 5,104 and increase/decrease the Group’s other reserves by approximately RMB 192. This sensitivity analysis has been determined assuming that the change in prices had occurred at the date of the statement of financial position 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 2021. 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 date of the statement of financial position 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. 40. FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued) Fair values (Continued) ● Level 3 (lowest level): fair values measured using valuation techniques in which any significant input is not based on observable market data. December 31, 2021 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Derivative financial assets: - Derivative financial assets 5,883 12,488 — 18,371 Financial assets at fair value through other comprehensive income: - Equity investments 179 — 588 767 -Trade accounts receivable and bills receivable — — 5,939 5,939 6,062 12,488 6,527 25,077 Liabilities Derivative financial liabilities: - Derivative financial liabilities 804 2,419 — 3,223 804 2,419 — 3,223 December 31, 2022 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Financial assets at fair value through profit or loss: - Fund Investments 2 — — 2 Derivative financial assets: - Derivative financial assets 7,857 11,478 — 19,335 Financial assets at fair value through other comprehensive income: - Equity investments 114 — 616 730 - Trade accounts receivable and bills receivable — — 3,507 3,507 7,973 11,478 4,123 23,574 Liabilities Derivative financial liabilities: - Derivative financial liabilities 1,293 6,020 — 7,313 1,293 6,020 — 7,313 During the years ended December 31, 2021 and 2022, there was no transfer between instruments in Level 1 and Level 2. (i) (Continued) 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 structured deposits and trade accounts receivable and bills receivable classified as Level 3 financial assets. 40. FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued) Fair values (Continued) (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 judgement 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 for debt with substantially the same characteristic and maturities range from 0.30% to 4.65% and from 2.66% to 4.35% for the years ended December 31, 2021 and 2022, 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 at December 31, 2021 and 2022: December 31, 2021 2022 RMB RMB Carrying amount 88,593 130,282 Fair value 85,610 125,866 The Group has not developed an internal valuation model necessary to estimate the fair values 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 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 at December 31, 2021 and 2022. |
ACCOUNTING ESTIMATES AND JUDGEM
ACCOUNTING ESTIMATES AND JUDGEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTING ESTIMATES AND JUDGEMENTS | |
ACCOUNTING ESTIMATES AND JUDGEMENTS | 41. ACCOUNTING ESTIMATES AND JUDGEMENTS 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 judgements 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 judgements 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 judgements 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. 41. ACCOUNTING ESTIMATES AND JUDGEMENTS (Continued) Oil and gas properties and reserves (Continued) Engineering estimates of the Group’s oil and gas reserves are inherently imprecise and represent only approximate amounts because of the subjective judgements 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 estimates of proved and proved developed reserves also change. 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, including environmental protection and energy structure transition variables, 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 units are discounted to their present value, which requires significant judgement relating to future selling prices of crude oil, natural gas, refined and chemical products, the production costs, the product mix,production volumes, production profiles, the oil and gas reserves 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 ECLs The Group measures and recognizes ECLs using readiness matrix, 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 ECLs. 41. ACCOUNTING ESTIMATES AND JUDGEMENTS (Continued) 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 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, 2022 | |
PARENT AND ULTIMATE HOLDING COMPANY | |
PARENT AND ULTIMATE HOLDING COMPANY | 42. PARENT AND ULTIMATE HOLDING COMPANY The directors consider the parent and ultimate holding company of the Group as at December 31, 2022 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, 2022 | |
RESERVES | |
RESERVES | 43. RESERVES 2021 2022 RMB RMB Capital reserve (Note (a)) Balance as at January 1 34,263 27,062 Distribution to sellers in the business combination of entities under common control (6,124) — Other contributions — 2,678 Transaction with non-controlling interests (1,396) — Other equity movements under the equity method — (1,009) Others 319 22 Balance as at December 31 27,062 28,753 Share premium (Note (b)) Balance as at January 1 55,850 55,850 Purchase of own shares — (3,004) Balance as at December 31 55,850 52,846 Statutory surplus reserve (Note (c)) Balance as at January 1 92,280 96,224 Appropriation 3,944 4,610 Balance as at December 31 96,224 100,834 Discretionary surplus reserve Balance as at January 1 117,000 117,000 Balance as at December 31 117,000 117,000 Other reserves Balance as at January 1 3,500 2,495 Other comprehensive income 17,574 19,126 Amounts transferred to initial carrying amount of hedged items (19,302) (15,363) Others 723 149 Balance as at December 31 2,495 6,407 Retained earnings (Note (d)) Balance as at January 1 322,361 354,480 Net income attributable to owners of the Company 71,975 66,153 Final dividend inspect of the previous year, approved and paid during the year (Note (e)) (15,739) (37,532) Interim dividend (Note (f)) (19,371) (19,371) Appropriation (3,944) (4,610) Others (802) (150) Balance as at December 31 354,480 358,970 653,111 664,810 Notes: (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. 43. RESERVES (Continued) Notes: (Continued) (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 Articles 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 (“CASs”), 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, 2020, 2021 and 2022, the Company transferred RMB 1,857, RMB 3,944 and RMB 4,610 respectively, being 10% of the net income determined in accordance with the accounting policies complying with CASs. The usage of the discretionary surplus reserve is similar to that of statutory surplus reserve. (d) As at December 31, 2021 and 2022, the amount of retained earnings available for distribution was RMB 116,440 and RMB 100,947, respectively, being the amount determined in accordance with CASs. 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 CASs 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 24, 2023, final dividends in respect of the year ended December 31, 2022 of RMB 0.195 per share totaling RMB 23,380 were proposed for shareholders’ approval at the Annual General Meeting. Final cash dividend for the year ended December 31, 2022 proposed after the date of the statement of financial position has not been recognized as a liability at the date of the statement of financial position. (e) Pursuant to the shareholders’ approval at the Annual General Meeting on May 25,2021, a final dividend of RMB 0.13 per share totaling RMB 15,739 according to total shares as at June 16, 2021 was approved. All dividends have been paid in the year ended December 31, 2021. Pursuant to the shareholders’ approval at the Annual General Meeting on May 18, 2022, a final dividend of RMB 0.31 per share totaling RMB 37,532 according to total shares as at June 9, 2022 was approved. All dividends have been paid in the year ended December 31, 2022. (f) Pursuant to the shareholders’ approval at the General Meeting on August 27, 2021, the interim dividends for the year ended December 31, 2021 of RMB 0.16 per share totaling RMB 19,371 were approved. Dividends were paid on September 17, 2021. Pursuant to the shareholders’ approval at the General Meeting on August 26, 2022, the interim dividends for the year ended December 31, 2022 of RMB 0.16 per share totaling RMB 19,371 were approved. Dividends were paid on September 19, 2022. |
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
SUPPLEMENTAL INFORMATION | |
SUPPLEMENTAL INFORMATION | In accordance with “Accounting Standards Codification (ASC) Topic 932 Extractive Activities - Oil and Gas”, issued by the Financial Accounting Standards Board of the United States, “Rule 4-10 of Regulation S-X”, issued by Securities and Exchange Commission (SEC), and in accordance with “Industrial Information Disclosure Guidelines for Public Company - No.8 Oil and Gas Exploitation”, issued by Shanghai Stock Exchange, this section provides supplemental information on oil and gas exploration and producing activities of the Group and its equity method investments at December 31, 2020, 2021 and 2022, and for the years then ended in the following six separate tables. Tables I through III provide historical cost information under IFRS pertaining to capitalized costs related to oil and gas producing activities; costs incurred in oil and gas exploration and development; and results of operation related to oil and gas producing activities. Tables IV through VI present information on the Group’s and its equity method investments’ estimated net proved reserve quantities; standardized measure of discounted future net cash flows; and changes in the standardized measure of discounted cash flows. Tables I to VI of supplemental information on oil and gas producing activities set out below represent information of the Company and its consolidated subsidiaries and equity method investments. Table I: Capitalized costs related to oil and gas producing activities Years ended December 31, 2020 2021 2022 RMB RMB RMB Other Other Other Total China countries Total China countries Total China countries The Group Property cost, wells and related equipments and facilities 757,592 716,683 40,909 793,045 752,352 40,693 840,719 796,403 44,316 Supporting equipments and facilities 184,638 184,621 17 188,766 188,742 24 202,262 202,238 24 Uncompleted wells, equipments and facilities 37,445 37,439 6 43,349 43,236 113 53,142 53,118 24 Total capitalized costs 979,675 938,743 40,932 1,025,160 984,330 40,830 1,096,123 1,051,759 44,364 Accumulated depreciation, depletion, amortization and impairment losses (742,195) (702,829) (39,366) (787,623) (748,705) (38,918) (832,093) (789,133) (42,960) Net capitalized costs 237,480 235,914 1,566 237,537 235,625 1,912 264,030 262,626 1,404 Equity method investments Share of net capitalized costs of associates and joint ventures 5,843 — 5,843 3,521 — 3,521 4,723 — 4,723 Total of the Group’s and its equity method investments’ net capitalized costs 243,323 235,914 7,409 241,058 235,625 5,433 268,753 262,626 6,127 Table II: Costs incurred in oil and gas exploration and development Years ended December 31, 2020 2021 2022 RMB RMB RMB Other Other Other Total China countries Total China countries Total China countries The Group Exploration 16,752 16,752 — 21,762 21,762 — 23,269 23,269 — Development 38,241 37,636 605 46,147 45,590 557 52,984 52,984 — Total costs incurred 54,993 54,388 605 67,909 67,352 557 76,253 76,253 — Equity method investments Share of costs of exploration and development of associates and joint ventures 100 — 100 442 — 442 1,796 — 1,796 Total of the Group’s and its equity method investments’ exploration and development costs 55,093 54,388 705 68,351 67,352 999 78,049 76,253 1,796 Table III: Results of operations related to oil and gas producing activities Years ended December 31, 2020 2021 2022 RMB RMB RMB Other Other Other Total China countries Total China countries Total China countries The Group Revenues Sales 52,354 52,354 — 72,953 72,953 — 96,616 96,616 — Transfers 58,069 56,052 2,017 86,650 84,484 2,166 118,120 114,812 3,308 110,423 108,406 2,017 159,603 157,437 2,166 214,736 211,428 3,308 Production costs excluding taxes (44,595) (43,487) (1,108) (49,649) (48,674) (975) (50,385) (49,372) (1,013) Exploration expenses (9,716) (9,716) — (12,382) (12,382) — (10,591) (10,591) — Depreciation, depletion, amortization and impairment losses (52,608) (51,754) (854) (54,104) (53,644) (460) (46,771) (46,322) (449) Taxes other than income tax (7,379) (7,379) — (11,249) (11,249) — (26,466) (26,466) — Earnings before taxation (3,875) (3,930) 55 32,219 31,488 731 80,523 78,677 1,846 Income tax expense 188 — 188 (8,225) (7,872) (353) (20,351) (19,669) (682) Results of operation from producing activities (3,687) (3,930) 243 23,994 23,616 378 60,172 59,008 1,164 Equity method investments Revenues Sales 4,913 — 4,913 8,812 — 8,812 11,170 — 11,170 4,913 — 4,913 8,812 — 8,812 11,170 — 11,170 Production costs excluding taxes (998) — (998) (2,246) — (2,246) (1,864) — (1,864) Exploration expenses — — — — — — — — — Depreciation, depletion, amortization and impairment losses (940) — (940) (533) — (533) (847) — (847) Taxes other than income tax (1,930) — (1,930) (4,391) — (4,391) (7,288) — (7,288) Earnings before taxation 1,045 — 1,045 1,642 — 1,642 1,171 — 1,171 Income tax expense (303) — (303) (355) — (355) (288) — (288) Share of net income for producing activities of associates and joint ventures 742 — 742 1,287 — 1,287 883 — 883 Total of the Group’s and its equity method investments’ results of operations for producing activities (2,945) (3,930) 985 25,281 23,616 1,665 61,055 59,008 2,047 The results of operations for producing activities for the years ended December 31, 2020, 2021 and 2022 are shown above. Revenues include sales to unaffiliated parties and transfers (essentially at third-party sales prices) to other segments of the Group. Income taxes are based on statutory tax rates, reflecting allowable deductions and tax credits. General corporate overhead and interest income and expense are excluded from the results of operations. Table IV: Reserve quantities information The Group’s and its equity method investments’ estimated net proved underground oil and gas reserves and changes thereto for the years ended December 31, 2020, 2021 and 2022 are shown in the following table. Proved oil and gas reserves are those quantities of oil and gas, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulation before contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether the estimate is a deterministic estimate or probabilistic estimate. Due to the inherent uncertainties and the limited nature of reservoir data, estimates of underground reserves are subject to change as additional information becomes available. Proved developed oil and gas reserves are proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared with the cost of a new well. “Net” reserves exclude royalties and interests owned by others and reflect contractual arrangements and obligation of rental fee in effect at the time of the estimate. Years ended December 31, 2020 2021 2022 Other Other Other Total China countries Total China countries Total China countries The Group Proved developed and Undeveloped reserves (oil) (million barrels) Beginning of year 1,450 1,433 17 1,252 1,232 20 1,440 1,416 24 Revisions of previous estimates (161) (163) 2 209 200 9 275 277 (2) Improved recovery 100 100 — 126 126 — 84 84 — Extensions and discoveries 119 111 8 101 101 — 108 108 — Production (256) (249) (7) (248) (243) (5) (248) (243) (5) End of year 1,252 1,232 20 1,440 1,416 24 1,659 1,642 17 Non–controlling interest in proved developed and undeveloped reserves at the end of year 5 — 5 8 — 8 6 — 6 Proved developed reserves Beginning of year 1,343 1,326 17 1,145 1,130 15 1,315 1,291 24 End of year 1,145 1,130 15 1,315 1,291 24 1,506 1,489 17 Proved undeveloped reserves Beginning of year 107 107 — 107 102 5 125 125 — End of year 107 102 5 125 125 — 153 153 — Proved developed and undeveloped reserves (gas) (billion cubic feet) Beginning of year 7,216 7,216 — 8,181 8,181 — 8,449 8,449 — Revisions of previous estimates 831 831 — 662 662 — 806 806 — Improved recovery 32 32 — 36 36 — 17 17 — Extensions and discoveries 1,171 1,171 — 678 678 — 664 664 — Production (1,069) (1,069) — (1,108) (1,108) — (1,134) (1,134) — End of year 8,181 8,181 — 8,449 8,449 — 8,802 8,802 — Proved developed reserves Beginning of year 6,026 6,026 — 6,357 6,357 — 6,734 6,734 — End of year 6,357 6,357 — 6,734 6,734 — 7,135 7,135 — Proved undeveloped reserves Beginning of year 1,190 1,190 — 1,824 1,824 — 1,715 1,715 — End of year 1,824 1,824 — 1,715 1,715 — 1,667 1,667 — Table IV: Reserve quantities information (Continued) Years ended December 31, 2020 2021 2022 Other Other Other Total China countries Total China countries Total China countries Equity method investments Proved developed and undeveloped reserves of associates and joint ventures (oil) (million barrels) Beginning of year 290 — 290 290 — 290 309 — 309 Revisions of previous estimates 12 — 12 33 — 33 9 — 9 Improved recovery — — — 1 — 1 6 — 6 Extensions and discoveries 12 — 12 10 — 10 4 — 4 Production (24) — (24) (25) — (25) (25) — (25) End of year 290 — 290 309 — 309 303 — 303 Proved developed reserves Beginning of year 245 — 245 244 — 244 263 — 263 End of year 244 — 244 263 — 263 260 — 260 Proved undeveloped reserves Beginning of year 45 — 45 46 — 46 46 — 46 End of year 46 — 46 46 — 46 43 — 43 Proved developed and undeveloped reserves of associates and joint ventures (gas) (billion cubic feet) Beginning of year 9 — 9 10 — 10 7 — 7 Revisions of previous estimates 4 — 4 1 — 1 — — — Improved recovery — — — — — — — — — Extensions and discoveries — — — — — — — — — Production (3) — (3) (4) — (4) (3) — (3) End of year 10 — 10 7 — 7 4 — 4 Proved developed reserves Beginning of year 9 — 9 8 — 8 6 — 6 End of year 8 — 8 6 — 6 3 — 3 Proved undeveloped reserves Beginning of year — — — 2 — 2 1 — 1 End of year 2 — 2 1 — 1 1 — 1 Total of the Group and its equity method investments Proved developed and undeveloped reserves (oil) (million barrels) Beginning of year 1,740 1,433 307 1,542 1,232 310 1,749 1,416 333 End of year 1,542 1,232 310 1,749 1,416 333 1,962 1,642 320 Proved developed and undeveloped reserves (gas) (billion cubic feet) Beginning of year 7,225 7,216 9 8,191 8,181 10 8,456 8,449 7 End of year 8,191 8,181 10 8,456 8,449 7 8,806 8,802 4 Table V: Standardized measure of discounted future net cash flows The standardized measure of discounted future net cash flows, related to the above proved oil and gas reserves, is calculated in accordance with the requirements of “ASC Topic 932 Extractive Activities - Oil and Gas”, “SEC Rule 4-10 of Regulation S-X”, and “Industrial Information Disclosure Guidelines for Public Company - No.8 Oil and Gas Exploitation”. Estimated future cash inflows from production are computed by applying the average, first-day-of-the-month price adjusted for differential for oil and gas during the twelve-month period before the ending date of the period covered by the report to year-end quantities of estimated net proved reserves. Future price changes are limited to those provided by contractual arrangements in existence at the end of each reporting year. Future development and production costs are those estimated future expenditures necessary to develop and produce year-end estimated proved reserves based on year-end cost indices, assuming continuation of year-end economic conditions. Estimated future income taxes are calculated by applying appropriate year-end statutory tax rates to estimated future pre-tax net cash flows, less the tax basis of related assets. Discounted future net cash flows are calculated using 10% discount factors. This discounting requires a year-by-year estimate of when the future expenditure will be incurred and when the reserves will be produced. The information provided does not represent management’s estimate of the Group’s and its equity method investments’ expected future cash flows or value of proved oil and gas reserves. Estimates of proved reserve quantities are imprecise and change over time as new information becomes available. Moreover, probable and possible reserves, which may become proved in the future, are excluded from the calculations. The arbitrary valuation requires assumptions as to the timing and amount of future development and production costs. The calculations are made for the years ended December 31, 2020, 2021 and 2022 and should not be relied upon as an indication of the Group’s and its equity method investments’ future cash flows or value of its oil and gas reserves. Years ended December 31, 2020 2021 2022 RMB RMB RMB Other Other Other Total China countries Total China countries Total China countries The Group Future cash flows 595,159 589,659 5,500 941,015 930,302 10,713 1,490,949 1,479,098 11,851 Future production costs (275,409) (271,824) (3,585) (413,006) (407,903) (5,103) (635,757) (630,922) (4,835) Future development costs (80,785) (77,659) (3,126) (79,562) (77,687) (1,875) (98,212) (96,575) (1,637) Future income tax expenses (11,758) (10,521) (1,237) (113,598) (111,178) (2,420) (190,893) (187,900) (2,993) Undiscounted future net cash flows 227,207 229,655 (2,448) (1) 334,849 333,534 1,315 566,087 563,701 2,386 10% annual discount for estimated timing of cash flows (54,158) (52,706) (1,452) (93,354) (93,164) (190) (170,126) (169,810) (316) Standardized measure of discounted future net cash flows 173,049 176,949 (3,900) 241,495 240,370 1,125 395,961 393,891 2,070 Discounted future net cash flows attributable to non–controlling interests (1,284) — (1,284) 370 — 370 681 — 681 Equity method investments Future cash flows 31,259 — 31,259 49,217 — 49,217 57,107 — 57,107 Future production costs (13,050) — (13,050) (18,026) — (18,026) (18,011) — (18,011) Future development costs (5,712) — (5,712) (6,328) — (6,328) (7,393) — (7,393) Future income tax expenses (1,740) — (1,740) (4,513) — (4,513) (5,831) — (5,831) Undiscounted future net cash flows 10,757 — 10,757 20,350 — 20,350 25,872 — 25,872 10% annual discount for estimated timing of cash flows (4,828) — (4,828) (10,201) — (10,201) (13,015) — (13,015) Standardized measure of discounted future net cash flows 5,929 — 5,929 10,149 — 10,149 12,857 — 12,857 Total of the Group’s and its equity method investments’ results of standardized measure of discounted future net cash flows 178,978 176,949 2,029 251,644 240,370 11,274 408,818 393,891 14,927 Note 1: The reason of the Group’s negative undiscounted future net cash flows attributable to the Other Countries for the year ended December 31, 2020 is that the Company has included the net asset retirement costs in the calculation of standardized measure for the Other Countries. Table VI: Changes in the standardized measure of discounted cash flows Years ended December 31, 2020 2021 2022 RMB RMB RMB The Group Sales and transfers of oil and gas produced, net of production costs (58,449) (98,705) (137,885) Net changes in prices and production costs (122,641) 135,697 185,589 Net changes in estimated future development cost (11,628) (7,413) (22,685) Net changes due to extensions, discoveries and improved recoveries 35,292 46,425 58,610 Revisions of previous quantity estimates (1,901) 42,637 78,310 Previously estimated development costs incurred during the year 6,684 5,475 11,885 Accretion of discount 31,940 16,448 32,342 Net changes in income taxes 19,375 (72,118) (51,700) Net changes for the year (101,328) 68,446 154,466 Equity method investments Sales and transfers of oil and gas produced, net of production costs (1,984) (2,174) (2,018) Net changes in prices and production costs (5,190) 4,967 3,301 Net changes in estimated future development cost (299) (752) (694) Net changes due to extensions, discoveries and improved recoveries 403 503 562 Revisions of previous quantity estimates 403 1,659 505 Previously estimated development costs incurred during the year 232 287 311 Accretion of discount 979 1,022 1,388 Net changes in income taxes 1,180 (1,292) (647) Net changes for the year (4,276) 4,220 2,708 Total of the Group’s and its equity method investments’ results of net changes for the year (105,604) 72,666 157,174 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | |
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. When assessing whether the Group has power, only substantive rights (held by the Group and other parties) are considered. 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 date of statement of financial position, 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 statements of financial position and consolidated statements 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 income statements and the consolidated statements 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 income statements. 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(j)) or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture (Note 2(a)(ii)). 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (a) Basis of consolidation (Continued) In the Company’s statement of financial position, investments in subsidiaries are stated at cost less impairment losses (Note 2(n)). The particulars of the Group’s principal subsidiaries are set out in Note 39. (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 and separate 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 (Notes 2(i) and (n)). 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 income statements, whereas the Group’s share of the post-acquisition, post-tax items of the investees’ other comprehensive income is recognized in the consolidated statements of comprehensive income. When the Group’s share of losses exceeds its interest in the associate or the joint venture, the Group’s interest is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the investee. For this purpose, the Group’s interest is the carrying amount of the investment under the equity method, together with any other long-term interests that in substance form part of the Group’s net investment in the associate or the joint venture, after applying the expected credit losses (“ECLs”) model to such other long-term interests where applicable. 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(j)) or, when appropriate, the cost on initial recognition of an investment in an associate. (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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (a) Basis of consolidation (Continued) The consolidated income statements include 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 beginning of the earliest period presented 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 date of the statement of financial position. Exchange differences, other than those capitalized as construction in progress, are recognized as income or expense in the “finance costs” section of the consolidated income statement. The results of foreign operations are translated into Renminbi at the applicable rates quoted by the PBOC prevailing on the transaction dates. The statement of financial position items, including goodwill arising on consolidation of foreign operations are translated into Renminbi at the closing foreign exchange rates at the date of the statement of financial position. 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 income statements 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 recognized initially at their transaction price, unless they contain significant financing components when they are recognized at fair value. They are subsequently measured at amortized cost using the effective interest method, less loss allowances for ECLs (Note 2(j)).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 mainly 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(n)). 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 income statements 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 income statements 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 3% Equipment, machinery and others 4 to 30 years 3% 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 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. |
Construction in progress | (h) 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(n)). 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. Items may be produced while bringing an item of property, plant and equipment to the location and condition necessary for it to be capable of operating in the manner intended by management. The proceeds from selling any such items and the related costs are recognized in profit or loss. 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 | (i) 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(n)). 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(n)). |
Financial assets | (j) 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 (“FVOCI”), c) financial assets measured at fair value through profit or loss. A contractual cash flow characteristic which could have only a de minimis effect on the contractual cash flows of the financial assets, 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. However, 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 and FVOCI. ● 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 outstanding. Interest income from these financial assets is recognized using the effective interest rate method. ● FVOCI: The business model for managing such financial assets by the Group are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment gains or losses, foreign exchange gains and losses and interest income calculated using the effective interest rate method, which are recognized in profit or loss. 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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (j) Financial assets (Continued) In addition, the Group designates some equity instruments that are not held for trading as financial assets at FVOCI, are presented in financial assets at FVOCI. 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 ECLs on a financial asset that is measured at amortized cost and a debt instrument that is measured at FVOCI. The Group measures and recognizes ECLs, considering reasonable and supportable information about the relevant past events, current conditions and forecasts of future economic conditions. The Group measures the ECLs of financial instruments on different stages at each the date of the statement of financial position. 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 ECLs. 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 ECLs. 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 ECLs. For financial instruments that have low credit risk at the date of the statement of financial position, 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 ECLs. 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 trade accounts receivable and bills receivable and financial assets at FVOCI related to revenue, the Group measures the loss allowance at an amount equal to lifetime ECLs. 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 equity instruments at FVOCI, the amount accumulated in the fair value reserve is transferred to retained earnings. It is not recycled through profit or loss. While on derecognition of other financial assets, this difference is recognized in profit or loss. (iv) Financial guarantees are contracts that require the issuer (i.e. the guarantor) to make specified payments to reimburse the beneficiary of the guarantee (the “holder”) for a loss the holder incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (j) Financial assets (Continued) Financial guarantees issued are initially recognized at fair value, which is determined by reference to fees charged in an arm’s length transaction for similar services, when such information is obtainable, or to interest rate differentials, by comparing the actual rates charged by lenders when the guarantee is made available with the estimated rates that lenders would have charged, had the guarantees not been available, where reliable estimates of such information can be made. Where consideration is received or receivable for the issuance of the guarantee, the consideration is recognized in accordance with the Group’s policies applicable to that category of asset. Where no such consideration is received or receivable, an immediate expense is recognized in profit or loss. Subsequent to initial recognition, the amount initially recognized as deferred income is amortized in profit or loss over the term of the guarantee as income from financial guarantees issued. The Group monitors the risk that the specified debtor will default on the contract and recognizes a provision when ECLs on the financial guarantees are determined to be higher than the carrying amount in respect of the guarantees (i.e. the amount initially recognized, less accumulated amortization). |
Financial liabilities | (k) 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 trade accounts payable and bills 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 | (l) 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 | (m) Derivative financial instruments and hedge accounting Derivative financial instruments are recognized initially at fair value. At each date of the statement of financial position, 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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (m) Derivative financial instruments and hedge accounting (Continued) The hedging relationship meets all of the following hedge effectiveness requirements: (i) (ii) (iii) 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) (ii) 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 non-financial 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. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (m) Derivative financial instruments and hedge accounting (Continued) 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. Fair value hedges A fair value hedge is a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, or a portion of such an asset, liability or firm commitment. The gain or loss from remeasuring the hedging instrument is recognized in profit or loss. The gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the recognized hedged item not measured at fair value and is recognized in profit or loss. Any adjustment to the carrying amount of a hedged item is amortized to profit or loss if the hedged item is a financial instrument (or a component thereof) measured at amortized cost. The amortization is based on a recalculated effective interest rate at the date that amortization begins. |
Impairment of assets | (n) Impairment of assets The carrying amounts of assets, including property, plant and equipment, construction in progress, right-of-use assets and other assets, are reviewed at each date of the statement of financial position 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 date of the statement of financial position. 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 income statements. 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 date of the statement of financial position 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 favorable 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 | (o) Trade, bills and other payables Trade, bills and other payables generally are financial liabilities and 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 invoice amounts. |
Interest-bearing borrowings | (p) 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 income statements over the period of borrowings using the effective interest method. |
Provisions and contingent liability | (q) 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. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, a separate asset is recognized for any expected reimbursement that would be virtually certain. The amount recognized for the reimbursement is limited to the carrying amount of the provision. 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. An onerous contract exists when the Group has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract. Provisions for onerous contracts are measured at the present value of the lower of the expected cost of terminating the contract and the net cost of continuing with thefulfilling the contract. The cost of fulfilling the contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling that contract. |
Revenue recognition | (r) Revenue recognition Revenue 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 recognized 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 goods or services (assets), 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 assets; the Group has transferred physical possession of the assets to the customer; the customer has the significant risks and rewards of ownership of the assets; the customer has accepted the assets. Sales of goods Sales are recognized when control of the goods have transferred. Obtaining control of relevant goods means that a customer can direct the use of the goods and obtain almost all the economic benefits from it. 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. |
Government grants | (s) 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 recognized to profit or loss on a straight-line basis over the expected lives of the related assets. |
Borrowing costs | (t) Borrowing costs Borrowing costs are expensed in the consolidated income statements 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 | (u) Repairs and maintenance expenditure Repairs and maintenance expenditure is expensed as incurred. |
Environmental expenditures | (v) 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 | (w) 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 10,087, RMB 11,481 and RMB 12,773 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Leases | (x) Leases A lease is a contract that a lessor transfers the right to use an identified asset for a period of time to a lessee in exchange for consideration. (i) As lessee The Group recognizes a right-of-use asset at the date at which the leased asset is available for use by the Group, and recognizes a lease liability measured at the present value of the remaining lease payments. The lease payments include fixed payments, the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and payments of penalties for terminating the lease if the lease term reflects the Group exercising that option, etc. Variable payments that are based on a percentage of sales are not included in the lease payments, and should be recognized in profit or loss when incurred. Lease liabilities to be paid within one year (including one year) from the date of the statement of financial position is presented in current liabilities. Right-of-use assets of the Group mainly comprise land. Right-of-use assets are measured at cost which comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, any initial direct costs incurred by the lessee, less any lease incentives received. The Group depreciates the right-of-use assets over the shorter of the asset’s useful life and the lease term on a straight-line basis. When the recoverable amount of a right-of-use asset is less than its carrying amount, the carrying amount is reduced to the recoverable amount. 2 SIGNIFICANT ACCOUNTING POLICIES (Continued) (x) Leases (Continued) Payments associated with short-term leases with lease terms within 12 months and all leases of low-value assets are recognized on a straight-line basis over the lease term as an expense in profit or loss or as cost of relevant assets, instead of recognizing right-of-use assets and lease liabilities. A lessee shall account for a lease modification as a separate lease if both: (1) the modification increases the scope of the lease by adding the right to use one or more underlying assets; and (2) the consideration for the lease increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the articular contract. For a lease modification that is not accounted for as a separate lease, except for the practical expedient which applies only to rent concessions occurring as a direct consequence of the COVID-19 pandemic, the Group determine the lease term of the modified lease at the effective date of the modification, and remeasure the lease liability by discounting the revised lease payments using a revised discount rate. The Group decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease for lease modifications that decrease the scope or shorten the term of the lease, and shall recognize in profit or loss any gain or loss relating to the partial or full termination of the lease. The Group make a corresponding adjustment to the right-of-use asset for all other lease modifications. (ii) As lessor A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is a lease other than a finance lease. When the Group leases self-owned plants and buildings, equipment and machinery, lease income from an operating lease is recognized on a straight-line basis over the period of the lease. The Group recognizes variable lease income which is based on a certain percentage of sales as rental income when occurred. |
Employee benefits | (y) Employee benefits The contributions payable under the Group’s retirement plans are recognized as an expense in the consolidated income statements as incurred and according to the contribution determined by the plans. Further information is set out in Note 37. 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 | (z) 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 statement of financial position 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 income statements, 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 date of statement of financial position and is reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Dividends | (aa) Dividends Dividends and distributions of profits proposed in the profit appropriation plan which will be authorized and declared after the date of statement of financial position, are not recognized as a liability at the date of statement of financial position 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 | (bb) 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. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Disclosure of detailed information about property, plant and equipment other than oil and gas properties | Estimated usage period Estimated residuals rate Buildings 12 to 50 years 3% Equipment, machinery and others 4 to 30 years 3% |
REVENUE FROM PRIMARY BUSINESS (
REVENUE FROM PRIMARY BUSINESS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REVENUE FROM PRIMARY BUSINESS | |
Schedule of sales of goods | Years ended December 31, 2020 2021 2022 RMB RMB RMB Gasoline 557,605 726,057 796,667 Diesel 422,566 542,260 743,551 Crude oil 351,707 429,038 517,183 Chemical feedstock 22,351 44,079 42,785 Basic organic chemicals 133,046 198,453 223,679 Synthetic resin 122,368 149,208 144,524 Kerosene 72,385 112,519 168,017 Natural gas 48,099 68,443 83,853 Synthetic fiber monomers and polymers 42,388 45,464 45,335 Others (i) 276,139 363,979 491,762 2,048,654 2,679,500 3,257,356 Note: (i) Others are primarily liquefied petroleum gas and other refinery and chemical byproducts and joint products. |
OTHER OPERATING REVENUES (Table
OTHER OPERATING REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER OPERATING REVENUES | |
Schedule of other operating revenues | Years ended December 31, 2020 2021 2022 RMB RMB RMB Sale of materials and others 54,986 59,990 59,590 Rental income 1,084 1,394 1,222 56,070 61,384 60,812 |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |
Schedule of selling, general and administrative expenses | Years ended December 31, 2020 2021 2022 RMB RMB RMB Variable lease payments, low-value and short-term lease payment 2,683 2,393 2,205 Auditor’s remuneration: - Audit services 73 59 66 - Others 8 8 3 |
PERSONNEL EXPENSES (Tables)
PERSONNEL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PERSONNEL EXPENSES | |
Schedule of personnel expenses | Years ended December 31, 2020 2021 2022 RMB RMB RMB Salaries, wages and other benefits 78,542 91,560 90,395 Contributions to retirement schemes (Note 37) 8,983 11,932 13,190 87,525 103,492 103,585 |
TAXES OTHER THAN INCOME TAX (Ta
TAXES OTHER THAN INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TAXES OTHER THAN INCOME TAX | |
Schedule of taxes other than income tax | Years ended December 31, 2020 2021 2022 RMB RMB RMB Consumption tax (i) 197,542 213,894 206,838 City construction tax (ii) 15,710 18,044 17,081 Special oil income levy 34 1,573 13,874 Education surcharge(ii) 11,678 13,409 12,337 Resources tax 4,572 6,432 8,752 Others 5,482 5,680 5,109 235,018 259,032 263,991 Notes: (i) Consumption tax was levied based on sales quantities of taxable products, tax rate of products is presented as below: 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 and education surcharge is levied on an entity based on its paid amount of value-added tax and consumption tax. |
Schedule of detailed information of consumption tax | 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 _ (EXP_2
OTHER OPERATING INCOME / (EXPENSES), NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER OPERATING INCOME / (EXPENSES), NET | |
Schedule of other operating income/(expense), net | Years ended December 31, 2020 2021 2022 RMB RMB RMB Government grants(i) 8,776 6,706 9,277 Ineffective portion of change in fair value of cash flow hedges 3,052 694 (255) Net realized and unrealized loss on derivative financial instruments not qualified as hedging (1,252) (14,873) (15,535) Impairment losses on long-lived assets (ii) (14,629) (10,035) (5,669) Gain/(loss) on disposal of property, plant, equipment and other 398 (3,062) (722) Fines, penalties and compensations (43) (220) (39) Donations (301) (165) (447) Others (1,781) (761) (1,389) (5,780) (21,716) (14,779) Notes: (i) Government grants for the years ended December 31, 2020, 2021 and 2022 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 8,495 , RMB 2,467 and RMB 2,891 for the years ended December 31, 2020, 2021 and 2022, respectively. The impairment comprised RMB 8,435 , RMB 2,467 and RMB 2,891 on property, plant and equipment for the years ended December 31, 2020, 2021 and 2022, respectively, and RMB 60 on construction in progress for the year ended December 31, 2020. The primary factors resulting in the E&P segment impairment loss were downward revision of oil and gas reserve in certain fields and high extraction costs. E&P segment determines recoverable amounts of property, plant and equipment relating to oil and gas producing activities, which include significant judgements and assumptions. The recoverable amounts were determined based on the present values of the expected future cash flows of the assets using pre-tax discount rates of 10.47% , 10.47% and 8.17% to 14.86% for the years ended December 31, 2020, 2021 and 2022, respectively. Further future downward revisions to the Group’s oil or nature gas 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 4,548 , RMB 3,628 and RMB 1,693 for the years ended December 31, 2020, 2021 and 2022, respectively. 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 property plant and equipment relating to oil and gas producing activities by approximately RMB 2,836 , RMB 2,400 and RMB 1,508 for the years ended December 31, 2020, 2021 and 2022,respectively. It is estimated that a general increase of 5% in discount rate, with all other variables held constant, would result in additional impairment loss on the Group’s property, plant and equipment relating to oil and gas producing activities by approximately RMB 287 , RMB 180 and RMB 126 for the years ended December 31, 2020, 2021 and 2022, respectively. |
INTEREST EXPENSE (Tables)
INTEREST EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST EXPENSE. | |
Schedule of interest expense | Years ended December 31, 2020 2021 2022 RMB RMB RMB Interest expense incurred 6,517 5,679 7,877 Less: Interest expense capitalized* (2,011) (996) (1,307) 4,506 4,683 6,570 Interest expense on lease liabilities 9,349 9,200 9,096 Accretion expenses (Note 32) 1,343 1,135 1,103 Interest expense 15,198 15,018 16,769 * Interest rates per annum at which borrowing costs were capitalized for construction in progress 2.60% to 4.66% 1.84% to 4.35% 1.89% to 4.25% |
INVESTMENT INCOME (Tables)
INVESTMENT INCOME (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT INCOME | |
Schedule of components of investment income | Years ended December 31, 2020 2021 2022 RMB RMB RMB Investment income from disposal of business and long-term equity investments (i) 37,525 82 13,754 Dividend income from holding of other equity instrument investments 156 34 76 Others 63 182 230 37,744 298 14,060 Note: (i) The Company and Sinomart KTS Development Limited, Sinopec Natural Gas Limited Company and Sinopec Marketing Company Limited (“Marketing Company”), the subsidiaries of the Company entered into the Agreement on Cash Payment to Purchase Equity in Sinopec Yu Ji Pipeline Company Limited, the Agreement on Additional Issuance of Equity and Cash Payment to Purchase Assets, the Agreement on Cash Payment to Purchase Assets and the Agreement on Additional Issuance of Equity to Purchase Assets with China Oil & Gas Pipeline Network Corporation (“PipeChina”), on July 21, 2020 and on July 23, 2020 respectively, pursuant to which the Company and its subsidiaries proposed to dispose target business, including equity interests in the relevant companies, oil and gas pipeline and ancillary facilities, to PipeChina. The above transactions were considered and approved by the 15th Session of 7th Directorate Meeting on July 23, 2020 and the second Extraordinary General Meeting on September 28, 2020. The transaction consideration was mainly additional issuance of equity and/or cash payment by PipeChina and the gain on above transactions was RMB 37,731 in 2020. The Company and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. (“Gaoqiao Petrochemical”) and INEOS Investment (Shanghai) Company Limited (“INEOS Shanghai”) entered into an equity transfer agreement on 28 July 2022. According to the agreement, the Company and Gaoqiao Petrochemical transferred 15% and 35% equity interests in Shanghai SECCO Petrochemical Co., Ltd. (“Shanghai SECCO”) to INEOS Shanghai respectively at a total consideration of RMB 10,863. The above transactions were considered and approved by the 10th Session of 8th Directorate Meeting of the Company. The transactions were completed on 28 December 2022 and the Company lost control over Shanghai SECCO. The Group accounted for its remaining 50% equity interest retained in Shanghai SECCO, at fair value upon initial recognition, as an interest in a joint venture from the date when control was lost. The investment income from disposal of Shanghai SECCO is RMB 13,697. |
INCOME TAX EXPENSE (Tables)
INCOME TAX EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INCOME TAX EXPENSE | |
Schedule of income tax expense on consolidated statements of income | Years ended December 31, 2020 2021 2022 RMB RMB RMB Current tax - Provision for the year 14,334 17,522 18,796 - Adjustment of prior years (117) (462) (1,757) Deferred taxation (Note 25) (7,873) 6,258 1,718 6,344 23,318 18,757 |
Schedule of reconciliation between actual income tax and expected income tax expense | Years ended December 31, 2020 2021 2022 RMB RMB RMB Earnings before income tax 48,615 109,169 94,400 Expected PRC income tax expense at a statutory tax rate of 25% 12,154 27,292 23,600 Tax effect of non-deductible expenses 3,281 5,948 4,509 Tax effect of non-taxable income (8,330) (8,096) (5,827) Tax effect of preferential tax rate (i) (1,011) (2,766) (3,091) Effect of income taxes at foreign operations (730) (222) (128) Tax effect of utilization of previously unrecognized tax losses and temporary differences (65) (701) (850) Tax effect of tax losses not recognized 1,087 1,391 2,243 Write-down of deferred tax assets 75 934 58 Adjustment of prior years (117) (462) (1,757) Actual income tax expense 6,344 23,318 18,757 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 2022. According to Announcement [2020] No. 23 of the Ministry of Finance (“ MOF”) “Announcement of the MOF, the State Taxation Administration and the National Development and Reform Commission on continuation of the income tax policy of western development enterprises”, the preferential tax rate of 15% extends from January 1, 2021 to December 31, 2030. |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER COMPREHENSIVE INCOME. | |
Schedule of other comprehensive income | Years ended December 31, 2020 2021 2022 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 9,207 (2,295) 6,912 15,659 (3,881) 11,778 6,667 (1,675) 4,992 Reclassification adjustments for amounts transferred to the consolidated income statements 198 (37) 161 8,858 (1,618) 7,240 8,127 (1,482) 6,645 Net movement during the year recognized in other comprehensive income (i) 9,405 (2,332) 7,073 24,517 (5,499) 19,018 14,794 (3,157) 11,637 Changes in the fair value of instruments at fair value through other comprehensive income (6) (4) (10) (6) 2 (4) (79) 12 (67) Transfer of loss on disposal of equity investments at fair value through other comprehensive income to retained earnings (12) — (12) — — — — — — Net movement during the year recognized in other comprehensive income (18) (4) (22) (6) 2 (4) (79) 12 (67) Cost of hedging reserve 162 — 162 (220) — (220) 149 — 149 Share of other comprehensive (2,441) — (2,441) 441 — 441 2,856 — 2,856 Foreign currency translation differences (4,457) — (4,457) (1,728) — (1,728) 7,254 — 7,254 Other comprehensive income 2,651 (2,336) 315 23,004 (5,497) 17,507 24,974 (3,145) 21,829 Note: (i) As at December 31, 2021 and 2022, cash flow hedge reserve amounted to a gain of RMB 7,244 and a gain of RMB 3,079 , respectively, of which a gain of RMB 7,214 and a gain of RMB 3,024 were attributable to owners of the Company. |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
BASIC AND DILUTED EARNINGS PER SHARE | |
Schedule of net income attributable to ordinary owners of the Company (diluted) | 2020 2021 2022 RMB RMB RMB Net income attributable to ordinary owners of the Company 33,443 71,975 66,153 Net income attributable to ordinary owners of the Company (diluted) 33,443 71,975 66,153 |
Schedule of weighted average number of shares (diluted) | 2020 2021 2022 Number of Number of Number of shares shares shares Weighted average number of shares as at December 31 121,071,209,646 121,071,209,646 120,889,248,735 Weighted average number of shares (diluted) as at December 31 121,071,209,646 121,071,209,646 120,889,248,735 |
TRADE ACCOUNTS RECEIVABLE (Tabl
TRADE ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade Accounts Receivable [Abstract] | |
Schedule of trade accounts receivable | December 31, 2021 2022 RMB RMB Amounts due from third parties 30,159 38,942 Amounts due from Sinopec Group Company and fellow subsidiaries 2,199 7,261 Amounts due from associates and joint ventures 6,536 4,240 38,894 50,443 Less: Loss allowance for ECLs (4,033) (4,079) 34,861 46,364 |
Schedule of ageing analysis of trade accounts receivable | December 31, 2021 2022 RMB RMB Within one year 34,180 46,039 Between one and two years 442 152 Between two and three years 221 88 Over three years 18 85 34,861 46,364 |
Schedule of analysis of loss allowance for ECL's | 2020 2021 2022 RMB RMB RMB Balance as at January 1 1,848 3,860 4,033 Provision for the year 2,173 436 417 Written back for the year (68) (127) (561) Written off for the year (23) (30) (49) Others (70) (106) 239 Balance as at December 31 3,860 4,033 4,079 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES. | |
Schedule of inventories | December 31, 2021 2022 RMB RMB Crude oil and other raw materials 109,940 139,307 Work in progress 15,701 14,536 Finished goods 84,174 93,994 Spare parts and consumables 2,515 2,987 212,330 250,824 Less: Allowance for diminution in value of inventories (4,897) (6,583) 207,433 244,241 |
Schedule of allowance for diminution in value of inventories | 2020 2021 2022 RMB RMB RMB Balance as at January 1 2,597 3,107 4,897 Allowance for the year 11,689 3,148 6,407 Reversal of allowance (333) (18) (85) Written off (10,795) (1,300) (4,530) Others (51) (40) (106) Balance as at December 31 3,107 4,897 6,583 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | December 31, 2021 2022 RMB RMB Receivables 35,918 27,311 Advances to suppliers 9,267 7,956 Value-added input tax to be deducted 19,137 25,355 Prepaid income tax 5,109 4,017 69,431 64,639 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of detailed information about property, plant and equipment | Equipment, Plants and Oil and gas machinery buildings properties and others Total RMB RMB RMB RMB Cost: Balance as at January 1, 2021 138,550 757,592 996,702 1,892,844 Additions 509 2,192 5,177 7,878 Transferred from construction in progress 5,487 40,357 65,182 111,026 Reclassifications 646 (617) (29) — Invest into the joint ventures and associated companies (8) — (188) (196) Reclassification to other long-term assets (665) (22) (1,027) (1,714) Disposals (1,297) (5,517) (17,495) (24,309) Exchange adjustments (57) (940) (95) (1,092) Balance as at December 31, 2021 143,165 793,045 1,048,227 1,984,437 Balance as at January 1, 2022 143,165 793,045 1,048,227 1,984,437 Additions 146 4,277 3,528 7,951 Transferred from construction in progress 8,832 40,397 72,738 121,967 Reclassifications 1,042 (289) (753) — Invest into the joint ventures and associated companies (64) — (150) (214) Reclassification to other long-term assets (66) (50) (1,417) (1,533) Disposals (830) (429) (17,169) (18,428) Exchange adjustments 207 3,768 321 4,296 Balance as at December 31, 2022 152,432 840,719 1,105,325 2,098,476 Accumulated depreciation and impairment losses: Balance as at January 1, 2021 63,540 620,720 614,969 1,299,229 Depreciation for the year 4,586 39,670 48,568 92,824 Impairment losses for the year 742 1,904 6,774 9,420 Reclassifications 185 (410) 225 — Invest into the joint ventures and associated companies (5) — (133) (138) Reclassification to other long-term assets (82) (7) (170) (259) Written back on disposals (771) (135) (13,668) (14,574) Exchange adjustments (29) (904) (57) (990) Balance as at December 31, 2021 68,166 660,838 656,508 1,385,512 Balance as at January 1, 2022 68,166 660,838 656,508 1,385,512 Depreciation for the year 4,736 31,059 50,383 86,178 Impairment losses for the year 312 2,754 2,016 5,082 Reclassifications 259 (209) (50) — Invest into the joint ventures and associated companies (20) — (60) (80) Reclassification to other long-term assets (25) (40) (160) (225) Written back on disposals (734) (406) (11,465) (12,605) Exchange adjustments 101 3,616 197 3,914 Balance as at December 31, 2022 72,795 697,612 697,369 1,467,776 Net book value: Balance as at January 1, 2021 75,010 136,872 381,733 593,615 Balance as at December 31, 2021 74,999 132,207 391,719 598,925 Balance as at December 31, 2022 79,637 143,107 407,956 630,700 |
CONSTRUCTION IN PROGRESS (Table
CONSTRUCTION IN PROGRESS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
CONSTRUCTION IN PROGRESS. | |
Schedule of construction in progress | 2021 2022 RMB RMB Balance as at January 1 125,525 155,939 Additions 159,729 180,741 Dry hole costs written off (7,702) (6,416) Transferred to property, plant and equipment (111,026) (121,967) Reclassification to other long-term assets (10,302) (11,492) Impairment losses for the year (144) (581) Disposals and others (107) (240) Exchange adjustments (34) 61 Balance as at December 31 155,939 196,045 |
Schedule of net changes in capitalized cost of exploratory wells in E&P segment | 2020 2021 2022 RMB RMB RMB At beginning of year 8,961 11,129 12,255 Additions, pending the determination of proved reserves 10,779 12,666 16,637 Transferred to oil and gas properties based on the determination of proved reserves (3,687) (6,208) (6,233) Dry hole costs written off (4,924) (5,332) (5,597) At end of year 11,129 12,255 17,062 |
Schedule of aging of capitalized exploratory well costs based on drilling completion date | December 31, 2020 2021 2022 RMB RMB RMB One year or less 10,586 11,168 14,879 Over one year 543 1,087 2,183 11,129 12,255 17,062 |
RIGHT-OF-USE ASSETS (Tables)
RIGHT-OF-USE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RIGHT-OF-USE ASSETS | |
Schedule of right of use assets | Land Others Total RMB RMB RMB Cost: Balance as at January 1, 2021 253,355 40,701 294,056 Additions 13,263 9,650 22,913 Decreases (2,862) (3,430) (6,292) Balance as at December 31, 2021 263,756 46,921 310,677 Balance as at January 1, 2022 263,756 46,921 310,677 Additions 10,981 9,108 20,089 Decreases (5,610) (4,229) (9,839) Balance as at December 31, 2022 269,127 51,800 320,927 Accumulated depreciation: Balance as at January 1, 2021 17,563 10,481 28,044 Additions 9,966 6,863 16,829 Decreases (407) (2,197) (2,604) Balance as at December 31, 2021 27,122 15,147 42,269 Balance as at January 1, 2022 27,122 15,147 42,269 Additions 10,045 7,519 17,564 Decreases (1,903) (1,859) (3,762) Balance as at December 31, 2022 35,264 20,807 56,071 Net book value: Balance as at January 1, 2021 235,792 30,220 266,012 Balance as at December 31, 2021 236,634 31,774 268,408 Balance as at December 31, 2022 233,863 30,993 264,856 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
GOODWILL | |
Schedule of goodwill | December 31, 2021 2022 RMB RMB Cost 16,455 14,325 Less: Accumulated impairment losses (7,861) (7,861) 8,594 6,464 |
Schedule of goodwill allocated to cash-generating units | December 31, 2021 2022 PRINCIPAL ACTIVITIES RMB RMB Sinopec Zhenhai Refining and Chemical Branch Manufacturing of intermediate petrochemical products and petroleum products 4,043 4,043 Sinopec Beijing Yanshan Petrochemical Branch Manufacturing of intermediate petrochemical products and petroleum products 1,004 1,004 Shanghai SECCO Production and sale of petrochemical products 2,541 — Other units without individually significant goodwill 1,006 1,417 8,594 6,464 |
INTEREST IN ASSOCIATES (Tables)
INTEREST IN ASSOCIATES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST IN ASSOCIATES | |
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 % % China Oil & Gas Pipeline Network Corporation (“PipeChina”) (i) Incorporated Registered capital RMB 500,000 million 9.42 4.58 Operation of oil and natural gas pipeline 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 Sinopec Capital Co.,Ltd. (“Sinopec Capital”) Incorporated Registered capital RMB 10,000 million 49.00 — Project and equity investment, investment management, investment consulting, self-owned equity management PRC PRC 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 10,002 — 50.00 Crude oil and natural gas extraction British Virgin Islands The Republic of Kazakhstan (i) The Group has a member in the Board of Directors of PipeChina. According to the structure and the resolution mechanism of the Board of Directors, the Group can exercise significant influence on PipeChina. |
Schedule of reconciliation of summarized financial information of associate accounted for using equity method to carrying amount of interest in associate | Zhongtian PipeChina Sinopec Finance Sinopec Capital Synergetic Energy CIR December 31, December 31, December 31, December 31, December 31, 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets 86,335 104,889 194,458 212,850 13,140 14,444 3,532 3,212 576 885 Non-current assets 768,161 816,301 55,086 57,394 102 249 51,331 51,035 870 1,106 Current liabilities (136,150) (132,266) (217,987) (236,840) (28) (101) (8,577) (3,811) (822) (714) Non-current liabilities (103,243) (199,675) (602) (673) (676) (990) (22,216) (23,435) (144) (138) Net assets 615,103 589,249 30,955 32,731 12,538 13,602 24,070 27,001 480 1,139 Net assets attributable to owners of the Company 526,241 525,235 30,955 32,731 12,538 13,602 24,070 27,001 480 1,139 Net assets attributable to non-controlling interests 88,862 64,014 — — — — — — — — Share of net assets from associates 73,674 73,533 15,168 16,038 6,144 6,665 9,327 10,463 240 570 Carrying Amounts 73,674 73,533 15,168 16,038 6,144 6,665 9,327 10,463 240 570 |
Schedule of summarized statement of comprehensive income | Year ended PipeChina(ii) Sinopec Finance Sinopec Capital Zhongtian Synergetic Energy CIR December 31 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 22,766 101,572 112,832 4,742 5,177 5,636 2 2 5 11,707 16,959 17,551 1,252 1,826 2,090 Net income for the year 6,444 29,776 31,908 2,027 2,168 2,338 1,278 990 1,281 551 4,184 4,562 181 461 574 Other comprehensive income — 2 — (372) 26 89 — — (68) — — — (308) 3 85 Total comprehensive income 6,444 29,778 31,908 1,655 2,194 2,427 1,278 990 1,213 551 4,184 4,562 (127) 464 659 Dividends declared by associates — 442 2,019 — 490 319 — — 73 284 86 632 2,517 1,152 - Share of net income from associates 709 3,205 3,670 993 1,062 1,145 626 485 627 214 1,621 1,768 91 231 287 Share of other comprehensive income from associates (iii) — — — (182) 13 44 — — (33) — — — (154) 2 43 (ii) The summarized statement of comprehensive income for the year 2020 presents the operating results from the date when the Group can exercise significant influence on PipeChina to December 31, 2020. (iii) Including foreign currency translation differences. |
INTEREST IN JOINT VENTURES (Tab
INTEREST IN JOINT VENTURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST IN JOINT VENTURES | |
Schedule of group's principal interest in joint ventures | Percentage of Particulars of Percentage of equity held by Country of issued and paid equity held by the Company’s Principal 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 12,704 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 Sinopec SABIC Tianjin Petrochemical Company Limited (“Sinopec SABIC Tianjin”) PRC Registered capital RMB 10,520 million — 50.00 Manufacturing and distribution of petrochemical products PRC Shanghai SECCO PRC Registered capital RMB 3,115 million 15.00 35.00 Manufacturing and distribution of petrochemical products PRC |
Schedule of reconciliation of summarized financial information of joint venture accounted for using equity method to carrying amount of interest in joint venture | Sinopec SABIC Shanghai FREP BASF-YPC Taihu Tianjin SECCO* December 31, December 31, December 31, December 31, December 31, 2021 2022 2021 2022 2021 2022 2021 2022 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets Cash and cash equivalents 6,562 3,733 5,375 3,061 1,258 1,625 4,820 4,506 1,323 Other current assets 9,217 11,311 6,953 5,993 2,188 15,269 3,437 2,554 3,647 Total current assets 15,779 15,044 12,328 9,054 3,446 16,894 8,257 7,060 4,970 Non-current assets 13,744 12,708 9,336 9,244 14,032 10,488 18,835 18,466 26,677 Current liabilities Current financial liabilities (1,177) (829) (77) (63) (32) (55) (597) (2,950) (6,609) Other current liabilities (5,008) (9,951) (2,546) (2,245) (1,931) (2,727) (3,547) (3,282) (2,368) Total current liabilities (6,185) (10,780) (2,623) (2,308) (1,963) (2,782) (4,144) (6,232) (8,977) Non-current liabilities Non-current financial liabilities (6,857) (3,742) — — (85) (157) (7,599) (6,393) — Other non-current liabilities (242) (237) (92) (107) (1,439) (1,852) (382) (635) (944) Total non-current liabilities (7,099) (3,979) (92) (107) (1,524) (2,009) (7,981) (7,028) (944) Net assets 16,239 12,993 18,949 15,883 13,991 22,591 14,967 12,266 21,726 Net assets attributable to owners of the Company 16,239 12,993 18,949 15,883 13,523 21,941 14,967 12,266 21,726 Net assets attributable to non-controlling interests — — — — 468 650 — — — Share of net assets from joint ventures 8,120 6,497 7,580 6,353 6,626 10,751 7,484 6,133 10,863 Carrying Amounts 8,120 6,497 7,580 6,353 6,626 10,751 7,484 6,133 10,863 |
Schedule of summarized statement of comprehensive income of joint ventures | Year ended FREP BASF-YPC Taihu Sinopec SABIC Tianjin December 31, 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 38,691 47,224 59,347 15,701 27,499 25,076 9,528 15,190 19,542 14,881 24,631 24,294 Depreciation, depletion and amortization (2,222) (2,789) (1,822) (1,244) (1,467) (1,431) (541) (667) (882) (1,085) (1,164) (1,270) Interest income 118 147 107 27 52 116 291 451 975 183 209 144 Interest expense (535) (411) (338) (16) (5) (7) (20) (107) (274) (131) (89) (111) Earning/(loss) before income tax 520 2,261 (2,004) 1,518 8,218 3,542 2,304 2,864 1,657 954 1,393 (2,396) Income tax expense (87) (597) 578 (379) (2,054) (885) (378) (601) (201) (236) (407) 603 Net income/(loss) for the year 433 1,664 (1,426) 1,139 6,164 2,657 1,926 2,263 1,456 718 986 (1,793) Other comprehensive income — — — — — — (3,368) (123) 7,144 — — — Total comprehensive income 433 1,664 (1,426) 1,139 6,164 2,657 (1,442) 2,140 8,600 718 986 (1,793) Dividends declared by joint ventures 300 128 910 691 454 2,462 — — — — 500 454 Share of net income/(loss) from joint ventures 217 832 (713) 456 2,466 1,063 911 1,081 703 359 493 (897) Share of other comprehensive income from joint ventures (i) — — — — — — (1,593) (60) 3,422 — — — * The share of net income and other comprehensive income for the period from 29 December 2022 to 31 December 2022 from Shanghai SECCO was immaterial. Note: (i) Including foreign currency translation differences. |
FINANCIAL ASSETS AT FAIR VALU_2
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | |
Schedule of financial assets at fair value through other comprehensive income | December 31, 2021 2022 RMB RMB Non-current assets Unlisted equity instruments 588 616 Listed equity instruments 179 114 Current assets Trade accounts receivable and bills receivable (i) 5,939 3,507 6,706 4,237 Note: (i) As at December 31, 2021 and 2022, bills receivable and certain trade accounts receivable were classified as financial assets at fair value through other comprehensive income, as relevant business model is achieved both by collecting contractual cash flows and selling of these assets. |
DEFERRED TAX ASSETS AND LIABI_2
DEFERRED TAX ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DEFERRED TAX ASSETS AND LIABILITIES | |
Schedule of deferred tax assets and liabilities | Assets Liabilities December 31, December 31, 2021 2022 2021 2022 RMB RMB RMB RMB Receivables and inventories 3,763 4,271 — (17) Payables 2,858 3,091 — — Cash flow hedges 258 85 (2,709) (736) Property, plant and equipment 16,777 15,714 (15,037) (16,519) Tax losses carried forward 4,749 4,643 — — Financial assets at fair value through other comprehensive income 127 131 (9) (6) Intangible assets 1,008 1,067 (492) (85) Others 1,056 1,395 (870) (1,161) Deferred tax assets/(liabilities) 30,596 30,397 (19,117) (18,524) |
Schedule of consolidated elimination amount between deferred tax assets and liabilities | December 31, 2021 2022 RMB RMB Deferred tax assets 11,207 10,445 Deferred tax liabilities 11,207 10,445 |
Schedule of deferred tax assets and liabilities after the consolidated elimination adjustments | December 31, 2021 2022 RMB RMB Deferred tax assets 19,389 19,952 Deferred tax liabilities 7,910 8,079 |
Schedule of movements in the deferred tax assets and liabilities | Recognized in Recognized in Balance Balance as at consolidated other Transferred as at January 1, income comprehensive from December 31, 2020 statement income Others reserve 2020 RMB RMB RMB RMB RMB RMB Receivables and inventories 2,546 (122) (12) (1) — 2,411 Payables 1,142 144 — — — 1,286 Cash flow hedges (268) (42) (2,316) — (4) (2,630) Property, plant and equipment 4,146 (2,244) 127 349 — 2,378 Tax losses carried forward 3,594 9,960 (84) (148) — 13,322 Financial assets at fair value through other comprehensive income 124 (4) (4) — — 116 Intangible assets 87 19 — 246 — 352 Others (564) 162 24 73 — (305) Net deferred tax assets/(liabilities) 10,807 7,873 (2,265) 519 (4) 16,930 Recognized in Recognized in Balance Balance as at consolidated other Transferred as at January 1, income comprehensive from December 31, 2021 statement income Others reserve 2021 RMB RMB RMB RMB RMB RMB Receivables and inventories 2,411 1,378 (26) — — 3,763 Payables 1,286 1,572 — — — 2,858 Cash flow hedges (2,630) (203) (5,499) — 5,881 (2,451) Property, plant and equipment 2,378 (1,004) 41 325 — 1,740 Tax losses carried forward 13,322 (8,554) (19) — — 4,749 Financial assets at fair value through other comprehensive income 116 — 2 — — 118 Intangible assets 352 63 — 101 — 516 Others (305) 490 (3) 4 — 186 Net deferred tax assets/(liabilities) 16,930 (6,258) (5,504) 430 5,881 11,479 Recognized in Recognized in Balance Balance as at consolidated other Transferred as at January 1, income comprehensive from December 31, 2022 statement income Others reserve 2022 RMB RMB RMB RMB RMB RMB Receivables and inventories 3,763 514 — (23) — 4,254 Payables 2,858 233 — — — 3,091 Cash flow hedges (2,451) 203 (3,157) (13) 4,767 (651) Property, plant and equipment 1,740 (3,341) — 796 — (805) Tax losses carried forward 4,749 525 — (631) — 4,643 Financial assets at fair value through other comprehensive income 118 (5) 12 — — 125 Intangible assets 516 80 — 386 — 982 Others 186 73 — (25) — 234 Net deferred tax assets/(liabilities) 11,479 (1,718) (3,145) 490 4,767 11,873 |
LONG-TERM PREPAYMENTS AND OTH_2
LONG-TERM PREPAYMENTS AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM PREPAYMENTS AND OTHER ASSETS | |
Schedule of long-term prepayments and other assets | December 31, 2021 2022 RMB RMB Operating rights of service stations 29,714 28,009 Long-term receivables from and prepayment to Sinopec Group Company and fellow subsidiaries 1,520 3,235 Prepayments for construction projects to third parties 7,470 7,505 Others (i) 31,326 34,063 70,030 72,812 Note: (i) Others mainly comprise catalyst expenditures and improvement expenditures of property, plant and equipment. |
Schedule of operating rights of service stations | 2021 2022 RMB RMB Operating rights of service stations Cost: Balance as at January 1 53,567 53,791 Additions 912 880 Decreases (688) (541) Balance as at December 31 53,791 54,130 Accumulated amortization: Balance as at January 1 21,711 24,077 Additions 2,699 2,301 Decreases (333) (257) Balance as at December 31 24,077 26,121 Net book value as at December 31 29,714 28,009 |
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, 2022 | |
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES | |
Schedule of short-term debts | December 31, 2021 2022 RMB RMB Third parties’ debts Short-term bank loans 24,959 14,461 RMB denominated 24,959 14,325 USD denominated — 136 Current portion of long-term bank loans 3,293 13,876 RMB denominated 3,281 13,875 USD denominated 12 1 Current portion of long-term corporate bonds 7,000 30,700 RMB denominated 7,000 30,700 35,252 59,037 Loans from Sinopec Group Company and fellow subsidiaries Short-term loans 2,407 6,852 RMB denominated 1,320 5,911 USD denominated 934 906 European Dollar (“EUR”) denominated 153 35 Current portion of long-term loans 466 440 RMB denominated 466 440 2,873 7,292 38,125 66,329 |
Schedule of long-term debts | Interest rate and final maturity December 31, 2021 2022 RMB RMB Third parties’ debts Long-term bank loans RMB denominated Interest rates ranging from 1.00% to 4.66% per annum as at December 31, 2022 with maturities through 2040 38,880 86,532 USD denominated Interest rates at 0.00% per annum as at December 31, 2022 with maturities through 2038 64 53 38,944 86,585 Corporate bonds RMB denominated Fixed interest rates ranging from 2.20% to 3.20% per annum as at December 31, 2022 with maturities through 2026 38,522 31,534 USD denominated Fixed interest rates ranging from 3.13 % to 4.25 % per annum as at December 31, 2022 with maturities through 2043 11,127 12,163 49,649 43,697 Total third parties’ long-term debts 88,593 130,282 Less: Current portion (10,293) (44,576) 78,300 85,706 Long-term loans from Sinopec Group Company and fellow subsidiaries RMB denominated Interest rates ranging from 1.08% to 5.23% per annum as at December 31, 2022 with maturities through 2037 12,988 22,695 USD denominated Interest rates at 1.65% per annum as at December 31, 2022 with maturities in 2027 1,168 — Less: Current portion (466) (440) 13,690 22,255 91,990 107,961 |
LEASE LIABILITIES (Tables)
LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASE LIABILITIES | |
Schedule of lease liabilities | December 31, 2021 2022 RMB RMB Lease liabilities Current 15,173 16,004 Non-current 170,233 166,407 185,406 182,411 |
TRADE ACCOUNTS PAYABLE AND BI_2
TRADE ACCOUNTS PAYABLE AND BILLS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TRADE ACCOUNTS PAYABLE AND BILLS PAYABLE | |
Schedule of trade accounts and bills payable | December 31, 2021 2022 RMB RMB Amounts due to third parties 193,547 224,994 Amounts due to Sinopec Group Company and fellow subsidiaries 4,227 25,358 Amounts due to associates and joint ventures 6,145 8,290 203,919 258,642 Bills payable 11,721 10,782 Trade accounts payable and bills payable measured at amortized cost 215,640 269,424 |
OTHER PAYABLES (Tables)
OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES | |
Schedule of other payables | December 31, 2021 2022 RMB RMB Salaries and welfare payable 14,048 13,617 Interest payable 822 549 Payables for constructions 54,596 68,492 Other payables 93,764 71,833 Taxes other than income tax 76,458 23,655 239,688 178,146 |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROVISIONS | |
Schedule of provisions | 2020 2021 2022 RMB RMB RMB Balance as at January 1 42,438 43,713 40,495 Provision for the year 1,563 2,163 4,277 Accretion expenses 1,343 1,135 1,103 Decrease for the year (1,490) (6,435) (2,438) Exchange adjustments (141) (81) 162 Balance as at December 31 43,713 40,495 43,599 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHARE CAPITAL | |
Schedule of share capital | December 31, 2021 2022 RMB RMB Registered, issued and fully paid 95,115,471,046 listed A shares (2021: 95,557,771,046) of RMB 1.00 each 95,558 95,115 24,780,936,600 listed H shares (2021: 25,513,438,600) of RMB 1.00 each 25,513 24,781 121,071 119,896 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |
Schedule of capital commitments | December 31, 2021 2022 RMB RMB Authorized and contracted for (i) 184,430 167,507 Authorized but not contracted for 90,227 94,407 274,657 261,914 Note: (i) The investment commitments as at December 31, 2021 and 2022 of the Group were RMB 3,648 and RMB 1,751 , respectively. |
Schedule of estimated future annual payments of exploration and production licenses | December 31, 2021 2022 RMB RMB Within one year 301 369 Between one and two years 112 152 Between two and three years 110 146 Between three and four years 102 115 Between four and five years 64 62 Thereafter 846 857 1,535 1,701 |
Schedule of contingent liabilities | December 31, 2021 2022 RMB RMB Joint ventures (ii) 9,117 8,927 Associates (iii) 5,746 — 14,863 8,927 Notes: (ii) As at December 31, 2021 and 2022, the Group provided a guarantee in respect to standby credit facilities granted to Zhongan United Coal Chemical Co., Ltd. (“Zhongan United”) by banks amounting to RMB 7,100 and RMB 7,100 . As at December 31, 2021 and 2022, the amount withdrawn (The portion corresponding to the shareholding ratio of the Group) by Zhongan United from banks and guaranteed by the Group was RMB 5,680 and RMB 5,254 . As at December 31, 2021 and 2022, the Group provided a guarantee in respect to standby credit facilities granted to Amur Gas Chemical Complex Limited Liability Company (“Amur Gas”) by banks amounting to RMB 23,208 and RMB 25,351 . As at December 31, 2021 and 2022 the amount withdrawn (the portion corresponding to the shareholding ratio of the Group) by Amur Gas from banks and guaranteed by the Group was RMB 3,264 and RMB 3,673 . 34. COMMITMENTS AND CONTINGENT LIABILITIES (Continued) Contingent liabilities (Continued) Notes: (Continued) As at December 31, 2021 and 2022, the Group provided a guarantee in respect to payment obligation under the raw material supply agreement of Amur Gas amount to RMB 15,493 and RMB 16,924. As at December 31, 2021 and 2022, Amur Gas has not yet incurred the relevant payment obligations and therefore the Group has no guarantee amount. The Group provided a guarantee in respect the engineering services agreement of Amur Gas. As at December 31, 2022, the engineering services agreement was terminated, accordingly the guarantee agreement was terminated. (iii) The Group provided a guarantee in respect to standby credit facilities granted to Zhongtian Synergetic Energy by banks amounting to RMB 17,050 . As at December 31, 2021, the amount withdrawn (the portion corresponding to the shareholding ratio of the Group) by Zhongtian Synergetic Energy and guaranteed by the Group was RMB 5,746 . During the year ended December 31, 2022, the guarantee provided by the Group was terminated. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related party transactions | Years ended December 31, Note 2020 2021 2022 RMB RMB RMB Sales of goods (i) 228,307 297,381 352,691 Purchases (ii) 151,300 191,888 184,986 Transportation and storage (iii) 8,734 19,443 18,291 Exploration and development services (iv) 31,444 33,930 37,317 Production related services (v) 31,915 44,405 48,465 Ancillary and social services (vi) 2,952 1,730 — Agency commission income (vii) 160 194 173 Interest income (viii) 704 715 1,203 Interest expense (ix) 919 385 541 Net deposits placed with related parties (x) (17,585) (8,265) (3,382) Net funds (placed with)/obtained from related parties (ix) (31,144) 30,305 36,608 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, and property maintenance. The term of the Cultural, Educational, Hygiene and Auxiliary Service Agreement expired on 31 December 2021, and is not renewed due to the significant decrease in the service scale after the separation and transfer of assets and business such as the Three Supplies and One Industry Assets etc. Cultural and educational services related or similar to training and auxiliary services thereunder have been incorporated into the Mutual Supply Agreement. (vii) 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. (viii) Interest income represents interest received from deposits placed with Sinopec Finance 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 at December 31, 2021 and 2022 were RMB 61,682 and RMB 65,064, respectively. (ix) Interest expense represents interest charges on the loans obtained from Sinopec Group Company and fellow subsidiaries. (x) The Group obtained loans, discounted bills and issued the acceptance bills from Sinopec Group Company and fellow subsidiaries. |
Schedule of amount due from/to related parties | December 31, 2021 2022 RMB RMB Trade accounts receivable 8,655 11,480 Financial assets at fair value through other comprehensive income 186 596 Prepaid expenses and other current assets 14,537 10,375 Long-term prepayments and other assets 3,116 8,633 Total 26,494 31,084 Trade accounts payable and bills payable 14,170 38,337 Contract liabilities 4,677 4,736 Other payables 50,649 38,312 Other long-term liabilities 2,779 5,180 Short-term loans and current portion of long-term loans from Sinopec Group Company and fellow subsidiaries 2,873 7,292 Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries 13,690 22,255 Lease liabilities (including to be paid within one year) 158,761 156,537 Total 247,599 272,649 |
Schedule of key management personnel emoluments | Years ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Short-term employee benefits 5,753 4,612 9,299 Retirement scheme contributions 342 379 566 6,095 4,991 9,865 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEGMENT REPORTING | |
Schedule of operating segments | Years ended December 31, 2020 2021 2022 RMB RMB RMB Sales of goods Exploration and production External sales 104,524 156,026 192,330 Inter-segment sales 57,513 87,298 121,912 162,037 243,324 314,242 Refining External sales 113,214 167,948 194,839 Inter-segment sales 826,219 1,212,455 1,376,425 939,433 1,380,403 1,571,264 Marketing and distribution External sales 1,062,447 1,367,605 1,660,924 Inter-segment sales 4,854 7,075 13,421 1,067,301 1,374,680 1,674,345 Chemicals External sales 322,169 424,774 449,911 Inter-segment sales 40,702 70,242 80,328 362,871 495,016 530,239 Corporate and others External sales 458,154 563,147 759,352 Inter-segment sales 430,073 732,356 1,028,800 888,227 1,295,503 1,788,152 Elimination of inter-segment sales (1,371,215) (2,109,426) (2,620,886) Sales of goods 2,048,654 2,679,500 3,257,356 Other operating revenues Exploration and production 5,718 6,674 5,169 Refining 4,633 5,161 3,875 Marketing and distribution 34,905 36,864 39,529 Chemicals 8,758 10,487 9,913 Corporate and others 2,056 2,198 2,326 Other operating revenues 56,070 61,384 60,812 Sales of goods and other operating revenues 2,104,724 2,740,884 3,318,168 Years ended December 31, 2020 2021 2022 Result RMB RMB RMB Operating (loss) /income By segment - Exploration and production (16,476) 4,685 53,716 - Refining (5,525) 65,279 12,211 - Marketing and distribution 20,828 21,204 24,537 - Chemicals 10,818 11,106 (14,127) - Corporate and others (393) (3,225) 1,318 - Elimination 4,417 (4,421) (1,820) Total segment operating income 13,669 94,628 75,835 Share of profit/(loss) from associates and joint ventures - Exploration and production 2,117 2,783 2,883 - Refining (2,516) 662 (645) - Marketing and distribution 2,200 3,731 3,142 - Chemicals 1,723 11,323 3,365 - Corporate and others 3,188 4,754 5,734 Aggregate share of profits from associates and joint ventures 6,712 23,253 14,479 Investment income - Exploration and production 13,118 55 — - Refining 14,941 (10) 35 - Marketing and distribution 8,980 3 31 - Chemicals (61) (54) 14,258 - Corporate and others 766 304 (264) Aggregate investment income 37,744 298 14,060 Net finance costs (9,510) (9,010) (9,974) Earnings before income tax 48,615 109,169 94,400 December 31, 2020 2021 2022 RMB RMB RMB Assets Segment assets - Exploration and production 354,024 371,100 412,543 - Refining 270,766 304,785 327,706 - Marketing and distribution 373,430 377,499 388,961 - Chemicals 190,789 222,803 242,794 - Corporate and others 118,458 133,961 148,014 Total segment assets 1,307,467 1,410,148 1,520,018 Interest in associates and joint ventures 188,342 209,179 233,941 Financial assets at fair value through other comprehensive income 1,525 767 730 Deferred tax assets 25,054 19,389 19,952 Cash and cash equivalents, time deposits with financial institutions 188,057 221,989 145,052 Other unallocated assets 28,451 27,783 28,947 Total assets 1,738,896 1,889,255 1,948,640 Liabilities Segment liabilities - Exploration and production 163,588 166,486 179,151 - Refining 136,980 146,763 86,428 - Marketing and distribution 234,309 228,826 237,534 - Chemicals 49,625 69,977 84,472 - Corporate and others 119,215 198,828 221,885 Total segment liabilities 703,717 810,880 809,470 Short-term debts 23,769 35,252 59,037 Income tax payable 6,586 4,809 4,725 Long-term debts 72,037 78,300 85,706 Loans from Sinopec Group Company and fellow subsidiaries 17,042 16,563 29,547 Deferred tax liabilities 8,124 7,910 8,079 Other unallocated liabilities 19,919 20,467 15,838 Total liabilities 851,194 974,181 1,012,402 |
Schedule of capital expenditure of operating segments | Years ended December 31, 2020 2021 2022 RMB RMB RMB Capital expenditure Exploration and production 56,416 68,148 83,300 Refining 24,756 22,469 22,863 Marketing and distribution 25,403 21,897 19,140 Chemicals 28,217 51,648 58,612 Corporate and others 2,312 3,786 5,181 137,104 167,948 189,096 Depreciation, depletion and amortization Exploration and production 46,273 52,880 45,321 Refining 20,090 20,743 20,588 Marketing and distribution 23,196 23,071 23,461 Chemicals 14,830 16,093 17,716 Corporate and others 3,072 2,893 2,820 107,461 115,680 109,906 Impairment losses on long-lived assets Exploration and production 8,495 2,467 2,891 Refining 1,923 860 2 Marketing and distribution 536 1,211 415 Chemicals 3,675 5,332 1,790 Corporate and others — 165 571 14,629 10,035 5,669 |
Schedule of geographical information of operating segments | Years ended December 31, 2020 2021 2022 RMB RMB RMB External sales Mainland China 1,720,695 2,166,040 2,824,140 Singapore 215,846 278,024 263,087 Others 168,183 296,820 230,941 2,104,724 2,740,884 3,318,168 December31, 2020 2021 2022 RMB RMB RMB Non-current assets Mainland China 1,216,267 1,268,814 1,353,771 Others 36,782 40,551 44,739 1,253,049 1,309,365 1,398,510 |
PRINCIPAL SUBSIDIARIES (Tables)
PRINCIPAL SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PRINCIPAL SUBSIDIARIES | |
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 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 Overseas Investment Holding Limited (“SOIH”) USD 3,423 100.00 — Investment holding of overseas business Sinopec International Petroleum Exploration and Production Limited (“SIPL”) RMB 8,250 100.00 — Investment in exploration, production and sale of petroleum and natural gas 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 China International United Petroleum and Chemical Company Limited RMB 5,000 100.00 — Trading of crude oil and petrochemical products Sinopec Qingdao Petrochemical Company Limited RMB 1,595 100.00 — Manufacturing of intermediate petrochemical products and petroleum products 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 Chemical Sales Company Limited RMB 1,000 100.00 — Marketing and distribution of petrochemical products Sinopec Hainan Refining and Chemical Company Limited RMB 9,606 100.00 — Manufacturing of intermediate petrochemical products and petroleum 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 ZhongKe (Guangdong) Refinery & Petrochemical Company Limited RMB 6,397 90.30 9.70 Crude oil processing and petroleum products manufacturing Sinopec Qingdao Refining and Chemical Company Limited RMB 5,000 85.00 15.00 Manufacturing of intermediate petrochemical products and petroleum products Marketing Company RMB 28,403 70.42 29.58 Marketing and distribution of refined petroleum products Sinopec Kantons Holdings Limited (“Sinopec Kantons”) HKD 248 60.33 39.67 Provision of crude oil jetty services and natural gas pipeline transmission services Sinopec-SK (Wuhan) Petrochemical Company Limited (“Sinopec-SK”) RMB 7,193 59.00 41.00 Production, sale, research and development of petrochemical products, ethylene and downstream byproducts Gaoqiao Petrochemical RMB 10,000 55.00 45.00 Manufacturing of intermediate petrochemical products and petroleum products Sinopec Baling Petrochemical Co., Ltd. (“Baling Petrochemical”) RMB 3,000 55.00 45.00 Crude oil processing and petroleum products manufacturing 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 10,492 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 Gaoqiao Marketing Company SIPL* Petrochemical Fujian Petrochemical Sinopec Kantons Petrochemical Sinopec-SK December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Current assets 159,599 190,697 22,759 25,677 20,932 15,766 1,464 1,901 4,761 5,436 16,253 23,991 6,791 5,781 Current liabilities (193,315) (212,593) (1,430) (9,468) (15,796) (13,998) (142) (169) (196) (209) (8,668) (10,162) (8,122) (8,488) Net current (liabilities)/ assets (33,716) (21,896) 21,329 16,209 5,136 1,768 1,322 1,732 4,565 5,227 7,585 13,829 (1,331) (2,707) Non-current assets 326,437 326,095 8,954 12,869 25,988 25,370 13,208 10,215 8,195 7,902 21,308 15,602 20,650 20,251 Non-current liabilities (59,604) (57,215) (17,823) (11,892) (747) (783) (700) (707) (170) (232) (10,679) (5,385) (7,512) (7,806) Net non-current assets/(liabilities) 266,833 268,880 (8,869) 977 25,241 24,587 12,508 9,508 8,025 7,670 10,629 10,217 13,138 12,445 Net assets 233,117 246,984 12,460 17,186 30,377 26,355 13,830 11,240 12,590 12,897 18,214 24,046 11,807 9,738 Attributable to owners of the Company 157,557 166,974 6,341 10,121 15,254 13,229 6,915 5,620 7,579 7,764 10,018 13,225 6,966 5,745 Attributable to non-controlling interests 75,560 80,010 6,119 7,065 15,123 13,126 6,915 5,620 5,011 5,133 8,196 10,821 4,841 3,993 |
Schedule of summarized consolidated statement of comprehensive income | Marketing Company SIPL* Shanghai Petrochemical Fujian Petrochemical Sinopec Kantons Gaoqiao Petrochemical Sinopec-SK Year ended December 31, 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Operating revenues 1,099,680 1,408,523 1,710,428 2,017 2,166 3,308 74,624 89,198 82,443 4,871 5,549 4,931 1,064 528 529 40,566 46,506 69,298 28,702 50,208 57,857 Net income/(loss) for the year 22,415 18,582 19,902 1,160 1,429 2,576 656 2,077 (2,842) 243 951 (1,925) 2,047 871 346 902 3,536 3,157 (920) 1,606 (1,101) Total comprehensive income 21,149 18,439 22,418 (720) 1,045 6,438 645 2,218 (2,665) 243 951 (1,925) 1,814 677 734 1,342 3,677 3,161 (920) 1,606 (1,101) Comprehensive income attributable to non-controlling interests 7,205 6,822 8,110 (287) 579 2,659 325 1,101 (1,318) 121 476 (962) 707 268 291 604 1,655 1,423 (377) 659 (451) Dividends paid to non-controlling interests 2,766 7,064 3,453 316 — — 649 541 548 150 64 333 175 164 169 1,759 256 984 — — 397 |
Schedule of summarized statement of cash flows | Marketing Company SIPL* Shanghai Petrochemical Fujian Petrochemical Sinopec Kantons Gaoqiao Petrochemical Sinopec-SK Year ended December 31, 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 RMB 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 54,139 28,923 43,408 281 690 1,458 1,680 3,950 (7,459) (244) (292) 2 586 133 133 905 (1,577) (1,247) (363) 5,476 (1,538) Net cash (used in)/ generated from investing activities (40,010) 2,420 (23,490) (2,659) 15 11,824 (3,888) (2,359) 4,390 (649) 420 653 3,846 1,276 (1,153) 1,347 1,432 4,235 (2,340) (1,789) (1,556) Net cash (used in)/ generated from financing activities (12,402) (31,081) (15,984) 1,683 (1,172) (1,369) 1,682 (3,393) (1,169) 882 (142) (682) (1,250) (1,066) (434) (4,257) 146 (2,986) 2,176 (653) 1,541 Net increase/(decrease) in cash and cash equivalents 1,727 262 3,934 (695) (467) 11,913 (526) (1,802) (4,238) (11) (14) (27) 3,182 343 (1,454) (2,005) 1 2 (527) 3,034 (1,553) Cash and cash equivalents as at January 1 6,901 8,642 8,999 8,833 7,699 7,068 7,450 6,916 5,112 79 68 54 117 3,182 3,432 2,006 — 1 1,593 1,066 4,100 Effect of foreign currency exchange rate changes 14 95 271 (439) (164) 1,059 (8) (2) 15 — — — (117) (93) 246 — — — — — (3) Cash and cash equivalents as at December 31 8,642 8,999 13,204 7,699 7,068 20,040 6,916 5,112 889 68 54 27 3,182 3,432 2,224 1 1 3 1,066 4,100 2,544 *The non-controlling interests of subsidiaries which the Group holds 100% of equity interests at the end of the year are the non-controlling interests of their subsidiaries. |
FINANCIAL RISK MANAGEMENT AND_2
FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES | |
Information about the exposure to credit risk and ECLs for accounts receivable | Impairment provision on Impairment provision individual basis on provision matrix basis Impairment provision Gross on Weighted- carrying Carrying individual average Impairment Loss amount amount basis loss rate provision allowance December 31, 2021 RMB RMB RMB % RMB RMB Current and within 1 year past due 34,263 4,280 26 0.2 % 57 83 1 to 2 years past due 623 500 137 35.8 % 44 181 2 to 3 years past due 3,411 3,324 3,146 50.6 % 44 3,190 Over 3 years past due 597 208 190 100.0 % 389 579 Total 38,894 8,312 3,499 534 4,033 Impairment provision on Impairment provision individual basis on provision matrix basis Impairment provision Gross on Weighted- carrying Carrying individual average Impairment Loss amount amount basis loss rate provision allowance December 31, 2022 RMB RMB RMB % RMB RMB Current and within 1 year past due 46,097 7,014 2 0.1 % 56 58 1 to 2 years past due 216 29 25 20.9 % 39 64 2 to 3 years past due 269 193 148 43.4 % 33 181 Over 3 years past due 3,861 3,487 3,405 99.2 % 371 3,776 Total 50,443 10,723 3,580 499 4,079 |
Schedule of liquidity risk | December 31, 2021 Total More than More than contractual Within 1 1 year but 2 years 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 35,252 35,871 35,871 — — — Long-term debts 78,300 85,718 2,169 49,390 27,518 6,641 Loans from Sinopec Group Company and fellow subsidiaries 16,563 18,457 3,174 604 10,712 3,967 Lease liabilities 185,406 296,485 15,833 12,031 35,411 233,210 Derivative financial liabilities 3,223 3,223 3,223 — — — Trade accounts payable and bills payable 215,640 215,640 215,640 — — — Other payables 117,420 117,420 117,420 — — — 651,804 772,814 393,330 62,025 73,641 243,818 December 31, 2022 Total More than More than contractual Within 1 1 year but 2 years 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 59,037 59,774 59,774 — — — Long-term debts 85,706 94,823 2,207 13,620 68,180 10,816 Loans from Sinopec Group Company and fellow subsidiaries 29,547 32,222 7,813 4,288 13,962 6,159 Lease liabilities 182,411 299,176 16,699 12,905 36,984 232,588 Derivative financial liabilities 7,313 7,313 7,313 — — — Trade accounts payable and bills payable 269,424 269,424 269,424 — — — Other payables 121,716 121,716 121,716 — — — 755,154 884,448 484,946 30,813 119,126 249,563 |
Schedule of fair values of financial instruments | December 31, 2021 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Derivative financial assets: - Derivative financial assets 5,883 12,488 — 18,371 Financial assets at fair value through other comprehensive income: - Equity investments 179 — 588 767 -Trade accounts receivable and bills receivable — — 5,939 5,939 6,062 12,488 6,527 25,077 Liabilities Derivative financial liabilities: - Derivative financial liabilities 804 2,419 — 3,223 804 2,419 — 3,223 December 31, 2022 Level 1 Level 2 Level 3 Total RMB RMB RMB RMB Assets Financial assets at fair value through profit or loss: - Fund Investments 2 — — 2 Derivative financial assets: - Derivative financial assets 7,857 11,478 — 19,335 Financial assets at fair value through other comprehensive income: - Equity investments 114 — 616 730 - Trade accounts receivable and bills receivable — — 3,507 3,507 7,973 11,478 4,123 23,574 Liabilities Derivative financial liabilities: - Derivative financial liabilities 1,293 6,020 — 7,313 1,293 6,020 — 7,313 December 31, 2021 2022 RMB RMB Carrying amount 88,593 130,282 Fair value 85,610 125,866 |
RESERVES (Tables)
RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RESERVES | |
Schedule of reserves movement of the company | 2021 2022 RMB RMB Capital reserve (Note (a)) Balance as at January 1 34,263 27,062 Distribution to sellers in the business combination of entities under common control (6,124) — Other contributions — 2,678 Transaction with non-controlling interests (1,396) — Other equity movements under the equity method — (1,009) Others 319 22 Balance as at December 31 27,062 28,753 Share premium (Note (b)) Balance as at January 1 55,850 55,850 Purchase of own shares — (3,004) Balance as at December 31 55,850 52,846 Statutory surplus reserve (Note (c)) Balance as at January 1 92,280 96,224 Appropriation 3,944 4,610 Balance as at December 31 96,224 100,834 Discretionary surplus reserve Balance as at January 1 117,000 117,000 Balance as at December 31 117,000 117,000 Other reserves Balance as at January 1 3,500 2,495 Other comprehensive income 17,574 19,126 Amounts transferred to initial carrying amount of hedged items (19,302) (15,363) Others 723 149 Balance as at December 31 2,495 6,407 Retained earnings (Note (d)) Balance as at January 1 322,361 354,480 Net income attributable to owners of the Company 71,975 66,153 Final dividend inspect of the previous year, approved and paid during the year (Note (e)) (15,739) (37,532) Interim dividend (Note (f)) (19,371) (19,371) Appropriation (3,944) (4,610) Others (802) (150) Balance as at December 31 354,480 358,970 653,111 664,810 Notes: (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. 43. RESERVES (Continued) Notes: (Continued) (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 Articles 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 (“CASs”), 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, 2020, 2021 and 2022, the Company transferred RMB 1,857, RMB 3,944 and RMB 4,610 respectively, being 10% of the net income determined in accordance with the accounting policies complying with CASs. The usage of the discretionary surplus reserve is similar to that of statutory surplus reserve. (d) As at December 31, 2021 and 2022, the amount of retained earnings available for distribution was RMB 116,440 and RMB 100,947, respectively, being the amount determined in accordance with CASs. 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 CASs 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 24, 2023, final dividends in respect of the year ended December 31, 2022 of RMB 0.195 per share totaling RMB 23,380 were proposed for shareholders’ approval at the Annual General Meeting. Final cash dividend for the year ended December 31, 2022 proposed after the date of the statement of financial position has not been recognized as a liability at the date of the statement of financial position. (e) Pursuant to the shareholders’ approval at the Annual General Meeting on May 25,2021, a final dividend of RMB 0.13 per share totaling RMB 15,739 according to total shares as at June 16, 2021 was approved. All dividends have been paid in the year ended December 31, 2021. Pursuant to the shareholders’ approval at the Annual General Meeting on May 18, 2022, a final dividend of RMB 0.31 per share totaling RMB 37,532 according to total shares as at June 9, 2022 was approved. All dividends have been paid in the year ended December 31, 2022. (f) Pursuant to the shareholders’ approval at the General Meeting on August 27, 2021, the interim dividends for the year ended December 31, 2021 of RMB 0.16 per share totaling RMB 19,371 were approved. Dividends were paid on September 17, 2021. Pursuant to the shareholders’ approval at the General Meeting on August 26, 2022, the interim dividends for the year ended December 31, 2022 of RMB 0.16 per share totaling RMB 19,371 were approved. Dividends were paid on September 19, 2022. |
SUPPLEMENTAL INFORMATION (Table
SUPPLEMENTAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUPPLEMENTAL INFORMATION | |
Schedule of capitalized costs related to oil and gas producing activities | Years ended December 31, 2020 2021 2022 RMB RMB RMB Other Other Other Total China countries Total China countries Total China countries The Group Property cost, wells and related equipments and facilities 757,592 716,683 40,909 793,045 752,352 40,693 840,719 796,403 44,316 Supporting equipments and facilities 184,638 184,621 17 188,766 188,742 24 202,262 202,238 24 Uncompleted wells, equipments and facilities 37,445 37,439 6 43,349 43,236 113 53,142 53,118 24 Total capitalized costs 979,675 938,743 40,932 1,025,160 984,330 40,830 1,096,123 1,051,759 44,364 Accumulated depreciation, depletion, amortization and impairment losses (742,195) (702,829) (39,366) (787,623) (748,705) (38,918) (832,093) (789,133) (42,960) Net capitalized costs 237,480 235,914 1,566 237,537 235,625 1,912 264,030 262,626 1,404 Equity method investments Share of net capitalized costs of associates and joint ventures 5,843 — 5,843 3,521 — 3,521 4,723 — 4,723 Total of the Group’s and its equity method investments’ net capitalized costs 243,323 235,914 7,409 241,058 235,625 5,433 268,753 262,626 6,127 |
Schedule of costs incurred in oil and gas exploration and development | Years ended December 31, 2020 2021 2022 RMB RMB RMB Other Other Other Total China countries Total China countries Total China countries The Group Exploration 16,752 16,752 — 21,762 21,762 — 23,269 23,269 — Development 38,241 37,636 605 46,147 45,590 557 52,984 52,984 — Total costs incurred 54,993 54,388 605 67,909 67,352 557 76,253 76,253 — Equity method investments Share of costs of exploration and development of associates and joint ventures 100 — 100 442 — 442 1,796 — 1,796 Total of the Group’s and its equity method investments’ exploration and development costs 55,093 54,388 705 68,351 67,352 999 78,049 76,253 1,796 |
Schedule of results of operations related to oil and gas producing activities | Years ended December 31, 2020 2021 2022 RMB RMB RMB Other Other Other Total China countries Total China countries Total China countries The Group Revenues Sales 52,354 52,354 — 72,953 72,953 — 96,616 96,616 — Transfers 58,069 56,052 2,017 86,650 84,484 2,166 118,120 114,812 3,308 110,423 108,406 2,017 159,603 157,437 2,166 214,736 211,428 3,308 Production costs excluding taxes (44,595) (43,487) (1,108) (49,649) (48,674) (975) (50,385) (49,372) (1,013) Exploration expenses (9,716) (9,716) — (12,382) (12,382) — (10,591) (10,591) — Depreciation, depletion, amortization and impairment losses (52,608) (51,754) (854) (54,104) (53,644) (460) (46,771) (46,322) (449) Taxes other than income tax (7,379) (7,379) — (11,249) (11,249) — (26,466) (26,466) — Earnings before taxation (3,875) (3,930) 55 32,219 31,488 731 80,523 78,677 1,846 Income tax expense 188 — 188 (8,225) (7,872) (353) (20,351) (19,669) (682) Results of operation from producing activities (3,687) (3,930) 243 23,994 23,616 378 60,172 59,008 1,164 Equity method investments Revenues Sales 4,913 — 4,913 8,812 — 8,812 11,170 — 11,170 4,913 — 4,913 8,812 — 8,812 11,170 — 11,170 Production costs excluding taxes (998) — (998) (2,246) — (2,246) (1,864) — (1,864) Exploration expenses — — — — — — — — — Depreciation, depletion, amortization and impairment losses (940) — (940) (533) — (533) (847) — (847) Taxes other than income tax (1,930) — (1,930) (4,391) — (4,391) (7,288) — (7,288) Earnings before taxation 1,045 — 1,045 1,642 — 1,642 1,171 — 1,171 Income tax expense (303) — (303) (355) — (355) (288) — (288) Share of net income for producing activities of associates and joint ventures 742 — 742 1,287 — 1,287 883 — 883 Total of the Group’s and its equity method investments’ results of operations for producing activities (2,945) (3,930) 985 25,281 23,616 1,665 61,055 59,008 2,047 |
Schedule of Reserve quantities information | Years ended December 31, 2020 2021 2022 Other Other Other Total China countries Total China countries Total China countries The Group Proved developed and Undeveloped reserves (oil) (million barrels) Beginning of year 1,450 1,433 17 1,252 1,232 20 1,440 1,416 24 Revisions of previous estimates (161) (163) 2 209 200 9 275 277 (2) Improved recovery 100 100 — 126 126 — 84 84 — Extensions and discoveries 119 111 8 101 101 — 108 108 — Production (256) (249) (7) (248) (243) (5) (248) (243) (5) End of year 1,252 1,232 20 1,440 1,416 24 1,659 1,642 17 Non–controlling interest in proved developed and undeveloped reserves at the end of year 5 — 5 8 — 8 6 — 6 Proved developed reserves Beginning of year 1,343 1,326 17 1,145 1,130 15 1,315 1,291 24 End of year 1,145 1,130 15 1,315 1,291 24 1,506 1,489 17 Proved undeveloped reserves Beginning of year 107 107 — 107 102 5 125 125 — End of year 107 102 5 125 125 — 153 153 — Proved developed and undeveloped reserves (gas) (billion cubic feet) Beginning of year 7,216 7,216 — 8,181 8,181 — 8,449 8,449 — Revisions of previous estimates 831 831 — 662 662 — 806 806 — Improved recovery 32 32 — 36 36 — 17 17 — Extensions and discoveries 1,171 1,171 — 678 678 — 664 664 — Production (1,069) (1,069) — (1,108) (1,108) — (1,134) (1,134) — End of year 8,181 8,181 — 8,449 8,449 — 8,802 8,802 — Proved developed reserves Beginning of year 6,026 6,026 — 6,357 6,357 — 6,734 6,734 — End of year 6,357 6,357 — 6,734 6,734 — 7,135 7,135 — Proved undeveloped reserves Beginning of year 1,190 1,190 — 1,824 1,824 — 1,715 1,715 — End of year 1,824 1,824 — 1,715 1,715 — 1,667 1,667 — Table IV: Reserve quantities information (Continued) Years ended December 31, 2020 2021 2022 Other Other Other Total China countries Total China countries Total China countries Equity method investments Proved developed and undeveloped reserves of associates and joint ventures (oil) (million barrels) Beginning of year 290 — 290 290 — 290 309 — 309 Revisions of previous estimates 12 — 12 33 — 33 9 — 9 Improved recovery — — — 1 — 1 6 — 6 Extensions and discoveries 12 — 12 10 — 10 4 — 4 Production (24) — (24) (25) — (25) (25) — (25) End of year 290 — 290 309 — 309 303 — 303 Proved developed reserves Beginning of year 245 — 245 244 — 244 263 — 263 End of year 244 — 244 263 — 263 260 — 260 Proved undeveloped reserves Beginning of year 45 — 45 46 — 46 46 — 46 End of year 46 — 46 46 — 46 43 — 43 Proved developed and undeveloped reserves of associates and joint ventures (gas) (billion cubic feet) Beginning of year 9 — 9 10 — 10 7 — 7 Revisions of previous estimates 4 — 4 1 — 1 — — — Improved recovery — — — — — — — — — Extensions and discoveries — — — — — — — — — Production (3) — (3) (4) — (4) (3) — (3) End of year 10 — 10 7 — 7 4 — 4 Proved developed reserves Beginning of year 9 — 9 8 — 8 6 — 6 End of year 8 — 8 6 — 6 3 — 3 Proved undeveloped reserves Beginning of year — — — 2 — 2 1 — 1 End of year 2 — 2 1 — 1 1 — 1 Total of the Group and its equity method investments Proved developed and undeveloped reserves (oil) (million barrels) Beginning of year 1,740 1,433 307 1,542 1,232 310 1,749 1,416 333 End of year 1,542 1,232 310 1,749 1,416 333 1,962 1,642 320 Proved developed and undeveloped reserves (gas) (billion cubic feet) Beginning of year 7,225 7,216 9 8,191 8,181 10 8,456 8,449 7 End of year 8,191 8,181 10 8,456 8,449 7 8,806 8,802 4 |
Schedule of standardized measure of discounted future net cash flows | Years ended December 31, 2020 2021 2022 RMB RMB RMB Other Other Other Total China countries Total China countries Total China countries The Group Future cash flows 595,159 589,659 5,500 941,015 930,302 10,713 1,490,949 1,479,098 11,851 Future production costs (275,409) (271,824) (3,585) (413,006) (407,903) (5,103) (635,757) (630,922) (4,835) Future development costs (80,785) (77,659) (3,126) (79,562) (77,687) (1,875) (98,212) (96,575) (1,637) Future income tax expenses (11,758) (10,521) (1,237) (113,598) (111,178) (2,420) (190,893) (187,900) (2,993) Undiscounted future net cash flows 227,207 229,655 (2,448) (1) 334,849 333,534 1,315 566,087 563,701 2,386 10% annual discount for estimated timing of cash flows (54,158) (52,706) (1,452) (93,354) (93,164) (190) (170,126) (169,810) (316) Standardized measure of discounted future net cash flows 173,049 176,949 (3,900) 241,495 240,370 1,125 395,961 393,891 2,070 Discounted future net cash flows attributable to non–controlling interests (1,284) — (1,284) 370 — 370 681 — 681 Equity method investments Future cash flows 31,259 — 31,259 49,217 — 49,217 57,107 — 57,107 Future production costs (13,050) — (13,050) (18,026) — (18,026) (18,011) — (18,011) Future development costs (5,712) — (5,712) (6,328) — (6,328) (7,393) — (7,393) Future income tax expenses (1,740) — (1,740) (4,513) — (4,513) (5,831) — (5,831) Undiscounted future net cash flows 10,757 — 10,757 20,350 — 20,350 25,872 — 25,872 10% annual discount for estimated timing of cash flows (4,828) — (4,828) (10,201) — (10,201) (13,015) — (13,015) Standardized measure of discounted future net cash flows 5,929 — 5,929 10,149 — 10,149 12,857 — 12,857 Total of the Group’s and its equity method investments’ results of standardized measure of discounted future net cash flows 178,978 176,949 2,029 251,644 240,370 11,274 408,818 393,891 14,927 Note 1: The reason of the Group’s negative undiscounted future net cash flows attributable to the Other Countries for the year ended December 31, 2020 is that the Company has included the net asset retirement costs in the calculation of standardized measure for the Other Countries. |
Schedule of changes in the standardized measure of discounted cash flows | Years ended December 31, 2020 2021 2022 RMB RMB RMB The Group Sales and transfers of oil and gas produced, net of production costs (58,449) (98,705) (137,885) Net changes in prices and production costs (122,641) 135,697 185,589 Net changes in estimated future development cost (11,628) (7,413) (22,685) Net changes due to extensions, discoveries and improved recoveries 35,292 46,425 58,610 Revisions of previous quantity estimates (1,901) 42,637 78,310 Previously estimated development costs incurred during the year 6,684 5,475 11,885 Accretion of discount 31,940 16,448 32,342 Net changes in income taxes 19,375 (72,118) (51,700) Net changes for the year (101,328) 68,446 154,466 Equity method investments Sales and transfers of oil and gas produced, net of production costs (1,984) (2,174) (2,018) Net changes in prices and production costs (5,190) 4,967 3,301 Net changes in estimated future development cost (299) (752) (694) Net changes due to extensions, discoveries and improved recoveries 403 503 562 Revisions of previous quantity estimates 403 1,659 505 Previously estimated development costs incurred during the year 232 287 311 Accretion of discount 979 1,022 1,388 Net changes in income taxes 1,180 (1,292) (647) Net changes for the year (4,276) 4,220 2,708 Total of the Group’s and its equity method investments’ results of net changes for the year (105,604) 72,666 157,174 |
PRINCIPAL ACTIVITIES, ORGANIZ_2
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 | ||
Number of shares issued | 68.8 | |
Par value per share | ¥ 1 | ¥ 1 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - PROPERTY, PLANT AND EQUIPMENT (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated residuals rate | 3% |
Equipment, machinery and others | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated residuals rate | 3% |
Bottom of Range [Member] | Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated usage period | 12 years |
Bottom of Range [Member] | Equipment, machinery and others | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated usage period | 4 years |
Top of Range [Member] | Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated usage period | 50 years |
Top of Range [Member] | Equipment, machinery and others | |
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, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SIGNIFICANT ACCOUNTING POLICIES | |||
Research and development expense | ¥ 12,773 | ¥ 11,481 | ¥ 10,087 |
REVENUE FROM PRIMARY BUSINESS_2
REVENUE FROM PRIMARY BUSINESS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | ¥ 3,257,356 | ¥ 2,679,500 | ¥ 2,048,654 |
Gasoline [member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | 796,667 | 726,057 | 557,605 |
Diesel [member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | 743,551 | 542,260 | 422,566 |
Crude oil [member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | 517,183 | 429,038 | 351,707 |
Chemical feedstock [Member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | 42,785 | 44,079 | 22,351 |
Basic Organic Chemicals [Member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | 223,679 | 198,453 | 133,046 |
Synthetic resin [member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | 144,524 | 149,208 | 122,368 |
Kerosene [member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | 168,017 | 112,519 | 72,385 |
Natural gas [member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | 83,853 | 68,443 | 48,099 |
Synthetic fiber monomers and polymers [member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | 45,335 | 45,464 | 42,388 |
Others [member] | |||
Disclosure of Sales of Goods [Line Items] | |||
Revenue from primary business | ¥ 491,762 | ¥ 363,979 | ¥ 276,139 |
OTHER OPERATING REVENUES (Detai
OTHER OPERATING REVENUES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OTHER OPERATING REVENUES | |||
Sale of materials and others | ¥ 59,590 | ¥ 59,990 | ¥ 54,986 |
Rental income | 1,222 | 1,394 | 1,084 |
Other operating revenues | ¥ 60,812 | ¥ 61,384 | ¥ 56,070 |
SELLING, GENERAL AND ADMINIST_3
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |||
Variable lease payments, low-value and short-term lease payment | ¥ 2,205 | ¥ 2,393 | ¥ 2,683 |
Auditor's remuneration: | |||
Audit services | 66 | 59 | 73 |
Others | ¥ 3 | ¥ 8 | ¥ 8 |
PERSONNEL EXPENSES (Details)
PERSONNEL EXPENSES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
PERSONNEL EXPENSES | |||
Salaries, wages and other benefits | ¥ 90,395 | ¥ 91,560 | ¥ 78,542 |
Contributions to retirement schemes (Note 37) | 13,190 | 11,932 | 8,983 |
Personnel expenses | ¥ 103,585 | ¥ 103,492 | ¥ 87,525 |
TAXES OTHER THAN INCOME TAX (De
TAXES OTHER THAN INCOME TAX (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
TAXES OTHER THAN INCOME TAX | |||
Consumption tax (i) | ¥ 206,838 | ¥ 213,894 | ¥ 197,542 |
City construction tax (ii) | 17,081 | 18,044 | 15,710 |
Special oil income levy | 13,874 | 1,573 | 34 |
Education surcharge(ii) | 12,337 | 13,409 | 11,678 |
Resources tax | 8,752 | 6,432 | 4,572 |
Others | 5,109 | 5,680 | 5,482 |
Taxes other than income tax | ¥ 263,991 | ¥ 259,032 | ¥ 235,018 |
TAXES OTHER THAN INCOME TAX - C
TAXES OTHER THAN INCOME TAX - CONSUMPTION TAX (Details) | Dec. 31, 2022 ¥ / 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 |
OTHER OPERATING INCOME _ (EXP_3
OTHER OPERATING INCOME / (EXPENSES), NET (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OTHER OPERATING INCOME / (EXPENSES), NET | |||
Government grants (i) | ¥ 9,277 | ¥ 6,706 | ¥ 8,776 |
Ineffective portion of change in fair value of cash flow hedges | (255) | 694 | 3,052 |
Net realized and unrealized loss on derivative financial instruments not qualified as hedging | (15,535) | (14,873) | (1,252) |
Impairment losses on long-lived assets (ii) | (5,669) | (10,035) | (14,629) |
Gain/(loss) on disposal of property, plant, equipment and other non-current assets, net | (722) | (3,062) | 398 |
Fines, penalties and compensations | (39) | (220) | (43) |
Donations | (447) | (165) | (301) |
Others | (1,389) | (761) | (1,781) |
Other operating expenses, total | ¥ (14,779) | ¥ (21,716) | ¥ (5,780) |
OTHER OPERATING INCOME _ (EXP_4
OTHER OPERATING INCOME / (EXPENSES), NET - IMPAIRMENT LOSSES ON LONG-LIVED ASSETS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | ¥ 5,669 | ¥ 10,035 | ¥ 14,629 |
Bottom of Range [Member] | |||
OTHER OPERATING EXPENSE, NET | |||
Pre-tax discount rate | 7.64% | 10.50% | 9.87% |
Top of Range [Member] | |||
OTHER OPERATING EXPENSE, NET | |||
Pre-tax discount rate | 18.68% | 13.90% | 11.60% |
Exploration and production | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | ¥ 2,891 | ¥ 2,467 | ¥ 8,495 |
Pre-tax discount rate | 10.47% | 10.47% | |
Estimated decrease rate of oil price | 5% | ||
Estimated increase rate of operating cost | 5% | ||
Estimated increase discount rate | 5% | ||
Exploration and production | Bottom of Range [Member] | |||
OTHER OPERATING EXPENSE, NET | |||
Pre-tax discount rate | 8.17% | ||
Exploration and production | Top of Range [Member] | |||
OTHER OPERATING EXPENSE, NET | |||
Pre-tax discount rate | 14.86% | ||
Exploration and production | Property, plant and equipment [Member] | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | ¥ 2,891 | ¥ 2,467 | ¥ 8,435 |
Impairment loss due to estimated decrease rate of oil price | 1,693 | 3,628 | 4,548 |
Impairment loss due to estimated increase rate of operating cost | 1,508 | 2,400 | 2,836 |
Impairment loss due to estimated increase discount rate | 126 | 180 | 287 |
Exploration and production | Construction in progress. | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 60 | ||
Chemicals | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 1,790 | 5,332 | 3,675 |
Chemicals | Property, plant and equipment [Member] | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 1,790 | 5,184 | 2,680 |
Chemicals | Construction in progress. | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 62 | 744 | |
Chemicals | Investment in associates and joint ventures | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 70 | 251 | |
Chemicals | Intangible assets | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 16 | ||
Refining | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 2 | 860 | 1,923 |
Refining | Property, plant and equipment [Member] | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 2 | 860 | 226 |
Refining | Investment in joint ventures | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 1,697 | ||
Marketing and distribution | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 415 | 1,211 | 536 |
Marketing and distribution | Property, plant and equipment [Member] | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 398 | 873 | 442 |
Marketing and distribution | Construction in progress. | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 11 | 82 | 40 |
Marketing and distribution | Investment in associates and joint ventures | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 2 | 8 | 7 |
Marketing and distribution | Intangible assets | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 4 | 246 | 47 |
Marketing and distribution | Right of use assets | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 2 | ||
Corporate and others | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 571 | 165 | ¥ 0 |
Corporate and others | Property, plant and equipment [Member] | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | 1 | 3 | |
Corporate and others | Construction in progress. | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | ¥ 570 | ||
Corporate and others | Investment in associates and joint ventures | |||
OTHER OPERATING EXPENSE, NET | |||
Impairment losses recognized on long-lived assets | ¥ 162 |
INTEREST EXPENSE (Details)
INTEREST EXPENSE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest expense [line items] | |||
Interest expense incurred | ¥ 7,877 | ¥ 5,679 | ¥ 6,517 |
Less: Interest expense capitalized | (1,307) | (996) | (2,011) |
Interest expense, gross amount | 6,570 | 4,683 | 4,506 |
Interest expense on lease liabilities | 9,096 | 9,200 | 9,349 |
Accretion expenses (Note 32) | 1,103 | 1,135 | 1,343 |
Interest expense | ¥ 16,769 | ¥ 15,018 | ¥ 15,198 |
Top of Range [Member] | |||
Interest expense [line items] | |||
Interest rates per annum at which borrowing costs were capitalized for construction in progress | 4.25% | 4.35% | 4.66% |
Bottom of Range [Member] | |||
Interest expense [line items] | |||
Interest rates per annum at which borrowing costs were capitalized for construction in progress | 1.89% | 1.84% | 2.60% |
INVESTMENT INCOME (Details)
INVESTMENT INCOME (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INVESTMENT INCOME | |||
Investment income from disposal of business and long-term equity investments | ¥ 13,754 | ¥ 82 | ¥ 37,525 |
Dividend income from holding of other equity instrument investments | 76 | 34 | 156 |
Others | 230 | 182 | 63 |
Total investment income | ¥ 14,060 | ¥ 298 | 37,744 |
Net gain from disposal of long-term equity investments | ¥ 37,731 |
INVESTMENT INCOME - Additional
INVESTMENT INCOME - Additional information (Details) - Shanghai SECCO ¥ in Millions | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
Disclosure of subsidiaries [line items] | |
Percentage of equity interest transferred | 15% |
Consideration for transfer | ¥ 10,863 |
Percentage of equity held by the Company | 50% |
Investment income from disposal | ¥ 13,697 |
Sinopec Qingdao Petrochemical Company Limited | |
Disclosure of subsidiaries [line items] | |
Percentage of equity interest transferred | 35% |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current tax | |||
Provision for the year | ¥ 18,796 | ¥ 17,522 | ¥ 14,334 |
Adjustment of prior years | (1,757) | (462) | (117) |
Deferred taxation (Note 25) | 1,718 | 6,258 | (7,873) |
Actual income tax expense | ¥ 18,757 | ¥ 23,318 | ¥ 6,344 |
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 | 120 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2030 | |
Reconciliation between actual income tax expense and the expected income tax expense at applicable statutory tax rates | ||||
Earnings before income tax | ¥ 94,400 | ¥ 109,169 | ¥ 48,615 | |
Expected PRC income tax expense at a statutory tax rate of 25% | 23,600 | 27,292 | 12,154 | |
Tax effect of non-deductible expenses | 4,509 | 5,948 | 3,281 | |
Tax effect of non-taxable income | (5,827) | (8,096) | (8,330) | |
Tax effect of preferential tax rate (i) | (3,091) | (2,766) | (1,011) | |
Effect of income taxes at foreign operations | (128) | (222) | (730) | |
Tax effect of utilization of previously unrecognized tax losses and temporary differences | (850) | (701) | (65) | |
Tax effect of tax losses not recognized | 2,243 | 1,391 | 1,087 | |
Write-down of deferred tax assets | 58 | 934 | 75 | |
Adjustment of prior years | (1,757) | (462) | (117) | |
Actual income tax expense | ¥ 18,757 | ¥ 23,318 | ¥ 6,344 | |
PRC | ||||
Reconciliation between actual income tax expense and the expected income tax expense at applicable statutory tax rates | ||||
Statutory income tax rate | 25% | 25% | 25% | |
Preferential income tax rate applicable to western regions | 15% | 15% |
OTHER COMPREHENSIVE INCOME (Det
OTHER COMPREHENSIVE INCOME (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flow hedges: | |||
Effective portion of changes in fair value of hedging instruments recognized during the year, before tax | ¥ 6,667 | ¥ 15,659 | ¥ 9,207 |
Effective portion of changes in fair value of hedging instruments recognized during the year, tax effect | (1,675) | (3,881) | (2,295) |
Effective portion of changes in fair value of hedging instruments recognized during the year, net of tax | 4,992 | 11,778 | 6,912 |
Reclassification adjustments for amounts transferred to the consolidated income statements, before tax | 8,127 | 8,858 | 198 |
Reclassification adjustments for amounts transferred to the consolidated income statements, tax effect | (1,482) | (1,618) | (37) |
Reclassification adjustments for amounts transferred to the consolidated income statements, net of tax | 6,645 | 7,240 | 161 |
Net movement during the year recognized in other comprehensive income (i), before tax | 14,794 | 24,517 | 9,405 |
Net movement during the year recognized in other comprehensive income (i), tax effect | (3,157) | (5,499) | (2,332) |
Net movement during the year recognized in other comprehensive income (i), net of tax | 11,637 | 19,018 | 7,073 |
Changes in the fair value of instruments at fair value through other comprehensive income, before tax | (79) | (6) | (6) |
Changes in the fair value of instruments at fair value through other comprehensive income, tax effect | 12 | 2 | (4) |
Changes in the fair value of instruments at fair value trough other comprehensive income, net of tax | (67) | (4) | (10) |
Transfer of loss on disposal of equity investments at fair value through other comprehensive income to retained earnings, before tax | 0 | 0 | (12) |
Transfer of loss on disposal of equity investments at fair value through other comprehensive income to retained earnings, tax effect | 0 | 0 | 0 |
Transfer of loss on disposal of equity investments at fair value through other comprehensive income to retained earnings, net of tax | 0 | 0 | (12) |
Net movement during the year recognized in other comprehensive income, before tax | (79) | (6) | (18) |
Net movement during the year recognized in other comprehensive income, tax effect | 12 | 2 | (4) |
Net movement during the year recognized in other comprehensive income, net of tax | (67) | (4) | (22) |
Cost of hedging reserve, before tax | 149 | (220) | 162 |
Cost of hedging reserve, tax effect | 0 | 0 | 0 |
Cost of hedging reserve, net of tax | 149 | (220) | 162 |
Share of other comprehensive loss of associates and joint ventures, before tax | 2,856 | 441 | (2,441) |
Share of other comprehensive loss of associates and joint ventures, tax effect | 0 | 0 | 0 |
Share of other comprehensive loss of associates and joint ventures, net of tax | 2,856 | 441 | (2,441) |
Foreign currency translation differences, before tax | 7,254 | (1,728) | (4,457) |
Foreign currency translation differences, tax effect | 0 | 0 | 0 |
Foreign currency translation differences, net of tax | 7,254 | (1,728) | (4,457) |
Other comprehensive income, before tax | 24,974 | 23,004 | 2,651 |
Other comprehensive income, tax effect | (3,145) | (5,497) | (2,336) |
Total other comprehensive income | 21,829 | 17,507 | ¥ 315 |
Cash flow hedge reserve | 3,079 | 7,244 | |
Cash flow hedge reserve attributable to owners | ¥ 3,024 | ¥ 7,214 |
BASIC AND DILUTED EARNINGS PE_3
BASIC AND DILUTED EARNINGS PER SHARE - PROFIT ATTRIBUTABLE TO ORDINARY SHAREHOLDERS OF THE COMPANY (DILUTED) (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
BASIC AND DILUTED EARNINGS PER SHARE | |||
Net income attributable to owners of the Company | ¥ 66,153 | ¥ 71,975 | ¥ 33,443 |
Net income attributable to ordinary owners of the Company (diluted) | ¥ 66,153 | ¥ 71,975 | ¥ 33,443 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
BASIC AND DILUTED EARNINGS PER SHARE | |||
Weighted average number of shares as at December 31 | 120,889,248,735 | 121,071,209,646 | 121,071,209,646 |
Weighted average number of shares (diluted) as at December 31 | 120,889,248,735 | 121,071,209,646 | 121,071,209,646 |
TRADE ACCOUNTS RECEIVABLE (Deta
TRADE ACCOUNTS RECEIVABLE (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
TRADE ACCOUNTS RECEIVABLE | ||
Trade accounts receivable, gross amount | ¥ 50,443 | ¥ 38,894 |
Less: Loss allowance for ECLs | (4,079) | (4,033) |
Trade accounts receivable, net | 46,364 | 34,861 |
Sinopec Group Company and fellow subsidiaries | ||
TRADE ACCOUNTS RECEIVABLE | ||
Trade accounts receivable, gross amount | 7,261 | 2,199 |
Associates and joint ventures | ||
TRADE ACCOUNTS RECEIVABLE | ||
Trade accounts receivable, gross amount | 4,240 | 6,536 |
Third parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Trade accounts receivable, gross amount | ¥ 38,942 | ¥ 30,159 |
TRADE ACCOUNTS RECEIVABLE - AGE
TRADE ACCOUNTS RECEIVABLE - AGEING ANALYSIS OF TRADE ACCOUNTS AND BILLS RECEIVABLES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
TRADE ACCOUNTS RECEIVABLE | ||
Trade accounts receivable and bills receivable | ¥ 46,364 | ¥ 34,861 |
One year or less | ||
TRADE ACCOUNTS RECEIVABLE | ||
Trade accounts receivable and bills receivable | 46,039 | 34,180 |
Between one and two years | ||
TRADE ACCOUNTS RECEIVABLE | ||
Trade accounts receivable and bills receivable | 152 | 442 |
Between two and three years | ||
TRADE ACCOUNTS RECEIVABLE | ||
Trade accounts receivable and bills receivable | 88 | 221 |
Over three years | ||
TRADE ACCOUNTS RECEIVABLE | ||
Trade accounts receivable and bills receivable | ¥ 85 | ¥ 18 |
TRADE ACCOUNTS RECEIVABLE - IMP
TRADE ACCOUNTS RECEIVABLE - IMPAIRMENT LOSSES FOR BAD AND DOUBTFUL DEBTS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
TRADE ACCOUNTS RECEIVABLE | |||
Balance as at January 1 | ¥ 4,033 | ||
Balance as at December 31 | 4,079 | ¥ 4,033 | |
Financial assets neither past due nor impaired | |||
TRADE ACCOUNTS RECEIVABLE | |||
Balance as at January 1 | 4,033 | 3,860 | ¥ 1,848 |
Provision for the year | 417 | 436 | 2,173 |
Written back for the year | (561) | (127) | (68) |
Written off for the year | (49) | (30) | (23) |
Others | 239 | (106) | (70) |
Balance as at December 31 | ¥ 4,079 | ¥ 4,033 | ¥ 3,860 |
INVENTORIES (Details)
INVENTORIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
INVENTORIES. | ||||
Crude oil and other raw materials | ¥ 139,307 | ¥ 109,940 | ||
Work in progress | 14,536 | 15,701 | ||
Finished goods | 93,994 | 84,174 | ||
Spare parts and consumables | 2,987 | 2,515 | ||
Inventories, book value | 250,824 | 212,330 | ||
Less: Allowance for diminution in value of inventories | (6,583) | (4,897) | ¥ (3,107) | ¥ (2,597) |
Inventories | ¥ 244,241 | ¥ 207,433 |
INVENTORIES - ALLOWANCE FOR DIM
INVENTORIES - ALLOWANCE FOR DIMINUTION IN VALUE OF INVENTORIES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INVENTORIES. | |||
Balance at beginning of year | ¥ 4,897 | ¥ 3,107 | ¥ 2,597 |
Allowance for the year | 6,407 | 3,148 | 11,689 |
Reversal of allowance | (85) | (18) | (333) |
Written off | (4,530) | (1,300) | (10,795) |
Others | (106) | (40) | (51) |
Balance at end of year | 6,583 | 4,897 | 3,107 |
Costs of inventories recognized as an expense | ¥ 2,774,951 | ¥ 2,177,141 | ¥ 1,657,227 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||
Receivables | ¥ 27,311 | ¥ 35,918 |
Advances to suppliers | 7,956 | 9,267 |
Value-added input tax to be deducted | 25,355 | 19,137 |
Prepaid income tax | 4,017 | 5,109 |
Prepaid expenses and other current assets | ¥ 64,639 | ¥ 69,431 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | ¥ 598,925 | ¥ 593,615 | |
Balance at end of year | 630,700 | 598,925 | ¥ 593,615 |
Provision of obligations for dismantlement of oil and gas properties, current | 4,277 | 2,163 | 1,563 |
Gross carrying amount | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 1,984,437 | 1,892,844 | |
Additions | 7,951 | 7,878 | |
Transferred from construction in progress | 121,967 | 111,026 | |
Reclassifications | 0 | 0 | |
Invest into the joint ventures and associated companies | (214) | (196) | |
Reclassification to other long-term assets | (1,533) | (1,714) | |
Disposals | (18,428) | (24,309) | |
Exchange adjustments | 4,296 | (1,092) | |
Balance at end of year | 2,098,476 | 1,984,437 | 1,892,844 |
Accumulated depreciation and impairment losses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | (1,385,512) | (1,299,229) | |
Reclassifications | 0 | 0 | |
Invest into the joint ventures and associated companies | 80 | 138 | |
Reclassification to other long-term assets | 225 | 259 | |
Exchange adjustments | (3,914) | 990 | |
Depreciation for the year | (86,178) | (92,824) | |
Impairment losses for the year | (5,082) | (9,420) | |
Written back on disposals | 12,605 | 14,574 | |
Balance at end of year | (1,467,776) | (1,385,512) | (1,299,229) |
Plants and buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 74,999 | 75,010 | |
Balance at end of year | 79,637 | 74,999 | 75,010 |
Plants and buildings | Gross carrying amount | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 143,165 | 138,550 | |
Additions | 146 | 509 | |
Transferred from construction in progress | 8,832 | 5,487 | |
Reclassifications | 1,042 | 646 | |
Invest into the joint ventures and associated companies | (64) | (8) | |
Reclassification to other long-term assets | (66) | (665) | |
Disposals | (830) | (1,297) | |
Exchange adjustments | 207 | (57) | |
Balance at end of year | 152,432 | 143,165 | 138,550 |
Plants and buildings | Accumulated depreciation and impairment losses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | (68,166) | (63,540) | |
Reclassifications | (259) | (185) | |
Invest into the joint ventures and associated companies | 20 | 5 | |
Reclassification to other long-term assets | 25 | 82 | |
Exchange adjustments | (101) | 29 | |
Depreciation for the year | (4,736) | (4,586) | |
Impairment losses for the year | (312) | (742) | |
Written back on disposals | 734 | 771 | |
Balance at end of year | (72,795) | (68,166) | (63,540) |
Oil and gas properties | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 132,207 | 136,872 | |
Impairment losses for the year | 2,891 | 2,467 | |
Balance at end of year | 143,107 | 132,207 | 136,872 |
Oil and gas properties | Gross carrying amount | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 793,045 | 757,592 | |
Additions | 4,277 | 2,192 | |
Transferred from construction in progress | 40,397 | 40,357 | |
Reclassifications | (289) | (617) | |
Invest into the joint ventures and associated companies | 0 | 0 | |
Reclassification to other long-term assets | (50) | (22) | |
Disposals | (429) | (5,517) | |
Exchange adjustments | 3,768 | (940) | |
Balance at end of year | 840,719 | 793,045 | 757,592 |
Oil and gas properties | Accumulated depreciation and impairment losses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | (660,838) | (620,720) | |
Reclassifications | 209 | 410 | |
Invest into the joint ventures and associated companies | 0 | 0 | |
Reclassification to other long-term assets | 40 | 7 | |
Exchange adjustments | (3,616) | 904 | |
Depreciation for the year | (31,059) | (39,670) | |
Impairment losses for the year | (2,754) | (1,904) | |
Written back on disposals | 406 | 135 | |
Balance at end of year | (697,612) | (660,838) | (620,720) |
Equipment, machinery and others | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 391,719 | 381,733 | |
Balance at end of year | 407,956 | 391,719 | 381,733 |
Equipment, machinery and others | Gross carrying amount | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 1,048,227 | 996,702 | |
Additions | 3,528 | 5,177 | |
Transferred from construction in progress | 72,738 | 65,182 | |
Reclassifications | (753) | (29) | |
Invest into the joint ventures and associated companies | (150) | (188) | |
Reclassification to other long-term assets | (1,417) | (1,027) | |
Disposals | (17,169) | (17,495) | |
Exchange adjustments | 321 | (95) | |
Balance at end of year | 1,105,325 | 1,048,227 | 996,702 |
Equipment, machinery and others | Accumulated depreciation and impairment losses | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | (656,508) | (614,969) | |
Reclassifications | 50 | (225) | |
Invest into the joint ventures and associated companies | 60 | 133 | |
Reclassification to other long-term assets | 160 | 170 | |
Exchange adjustments | (197) | 57 | |
Depreciation for the year | (50,383) | (48,568) | |
Impairment losses for the year | (2,016) | (6,774) | |
Written back on disposals | 11,465 | 13,668 | |
Balance at end of year | ¥ (697,369) | ¥ (656,508) | ¥ (614,969) |
CONSTRUCTION IN PROGRESS (Detai
CONSTRUCTION IN PROGRESS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | ¥ 598,925 | ¥ 593,615 | |
Dry hole costs written off | 6,416 | 7,702 | ¥ 5,928 |
Balance at end of year | 630,700 | 598,925 | 593,615 |
Construction in progress. | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance at beginning of year | 155,939 | 125,525 | |
Additions | 180,741 | 159,729 | |
Dry hole costs written off | (6,416) | (7,702) | |
Transferred to property, plant and equipment | (121,967) | (111,026) | |
Reclassification to other long-term assets | (11,492) | (10,302) | |
Impairment losses for the year | (581) | (144) | |
Disposals and others | (240) | (107) | |
Exchange adjustments | 61 | (34) | |
Balance at end of year | ¥ 196,045 | ¥ 155,939 | ¥ 125,525 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of net changes in capitalized cost of exploratory wells in exploration and production segment [line items] | |||
Balance at beginning of year | ¥ 12,255 | ¥ 11,129 | |
Dry hole costs written off | 6,416 | 7,702 | ¥ 5,928 |
Balance at end of year | 17,062 | 12,255 | 11,129 |
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 | 12,255 | 11,129 | 8,961 |
Additions, pending the determination of proved reserves | 16,637 | 12,666 | 10,779 |
Transferred to oil and gas properties based on the determination of proved reserves | (6,233) | (6,208) | (3,687) |
Dry hole costs written off | (5,597) | (5,332) | (4,924) |
Balance at end of year | ¥ 17,062 | ¥ 12,255 | ¥ 11,129 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of aging of capitalized exploratory well costs based on drilling completion date [line items] | |||
Capitalized exploratory well costs | ¥ 17,062 | ¥ 12,255 | ¥ 11,129 |
Geological and geophysical costs | 3,478 | 4,174 | 3,166 |
One year or less | |||
Disclosure of aging of capitalized exploratory well costs based on drilling completion date [line items] | |||
Capitalized exploratory well costs | 14,879 | 11,168 | 10,586 |
Over one year | |||
Disclosure of aging of capitalized exploratory well costs based on drilling completion date [line items] | |||
Capitalized exploratory well costs | ¥ 2,183 | ¥ 1,087 | ¥ 543 |
RIGHT-OF-USE ASSETS (Details)
RIGHT-OF-USE ASSETS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at the beginning | ¥ 268,408 | ¥ 266,012 |
Balance at the end | 264,856 | 268,408 |
Gross carrying amount | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at the beginning | 310,677 | 294,056 |
Additions | 20,089 | 22,913 |
Decreases | (9,839) | (6,292) |
Balance at the end | 320,927 | 310,677 |
Accumulated depreciation: | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at the beginning | (42,269) | (28,044) |
Additions | (17,564) | (16,829) |
Decreases | 3,762 | 2,604 |
Balance at the end | (56,071) | (42,269) |
Land | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at the beginning | 236,634 | 235,792 |
Balance at the end | 233,863 | 236,634 |
Land | Gross carrying amount | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at the beginning | 263,756 | 253,355 |
Additions | 10,981 | 13,263 |
Decreases | (5,610) | (2,862) |
Balance at the end | 269,127 | 263,756 |
Land | Accumulated depreciation: | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at the beginning | (27,122) | (17,563) |
Additions | (10,045) | (9,966) |
Decreases | 1,903 | 407 |
Balance at the end | (35,264) | (27,122) |
Others | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at the beginning | 31,774 | 30,220 |
Balance at the end | 30,993 | 31,774 |
Others | Gross carrying amount | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at the beginning | 46,921 | 40,701 |
Additions | 9,108 | 9,650 |
Decreases | (4,229) | (3,430) |
Balance at the end | 51,800 | 46,921 |
Others | Accumulated depreciation: | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance at the beginning | (15,147) | (10,481) |
Additions | (7,519) | (6,863) |
Decreases | 1,859 | 2,197 |
Balance at the end | ¥ (20,807) | ¥ (15,147) |
GOODWILL - IMPAIRMENT TESTS FOR
GOODWILL - IMPAIRMENT TESTS FOR CASH-GENERATING UNITS CONTAINING GOODWILL (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill | ¥ 6,464 | ¥ 8,594 |
Gross carrying amount | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill | 14,325 | 16,455 |
Accumulated impairment losses | ||
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, 2022 | Dec. 31, 2021 |
Disclosure of information for cash-generating units [line items] | ||
Goodwill | ¥ 6,464 | ¥ 8,594 |
Sinopec Zhenhai Refining and Chemical Branch | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 4,043 | 4,043 |
Sinopec Beijing Yanshan Petrochemical Branch | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 1,004 | 1,004 |
Shanghai SECCO | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | 2,541 | |
Other units without individually significant goodwill | ||
Disclosure of information for cash-generating units [line items] | ||
Goodwill | ¥ 1,417 | ¥ 1,006 |
GOODWILL - RECOVERABLE AMOUNTS
GOODWILL - RECOVERABLE AMOUNTS OF CASH-GENERATING UNITS - NARRATIVE (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Top of Range | ||
GOODWILL | ||
Pre-tax discount rates applied to cash flow projections | 12.20% | 11.70% |
Bottom of Range | ||
GOODWILL | ||
Pre-tax discount rates applied to cash flow projections | 10.10% | 11.40% |
INTEREST IN ASSOCIATES - PRINCI
INTEREST IN ASSOCIATES - PRINCIPAL ASSOCIATES (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
INTEREST IN ASSOCIATES | |||
Particulars of issued and paid up capital | ¥ 119,896 | ¥ 121,071 | |
China Oil & Gas Pipeline Network Corporation ("PipeChina") | |||
INTEREST IN ASSOCIATES | |||
Particulars of issued and paid up capital | ¥ 500,000 | ||
Percentage of equity held by the Company | 9.42% | ||
Percentage of equity held by Company's subsidiaries | 4.58% | 4.58% | |
Sinopec Finance Company Limited ("Sinopec Finance") | |||
INTEREST IN ASSOCIATES | |||
Particulars of issued and paid up capital | ¥ 18,000 | ||
Percentage of equity held by the Company | 49% | ||
Sinopec Capital Co.,Ltd. ("Sinopec Capital") | |||
INTEREST IN ASSOCIATES | |||
Particulars of issued and paid up capital | ¥ 10,000 | ||
Percentage of equity held by the Company | 49% | ||
Zhongtian Synergetic Energy Company Limited ("Zhongtian Synergetic Energy") | |||
INTEREST IN ASSOCIATES | |||
Particulars of issued and paid up capital | ¥ 17,516 | ||
Percentage of equity held by Company's subsidiaries | 38.75% | 38.75% | |
Caspian Investments Resources Ltd. ("CIR") | |||
INTEREST IN ASSOCIATES | |||
Particulars of issued and paid up capital | $ | $ 10,002 | ||
Percentage of equity held by Company's subsidiaries | 50% | 50% |
INTEREST IN ASSOCIATES - SUMMAR
INTEREST IN ASSOCIATES - SUMMARIZED FINANCIAL INFORMATION (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
INTEREST IN ASSOCIATES | ||
Current assets | ¥ 523,140 | ¥ 558,024 |
Non-current assets | 1,425,500 | 1,331,231 |
Current liabilities | (667,385) | (641,280) |
Non-current liabilities | (345,017) | (332,901) |
Net assets attributable to owners of the Company | 784,706 | 774,182 |
Net assets attributable to non-controlling interests | 151,532 | 140,892 |
PipeChina | ||
INTEREST IN ASSOCIATES | ||
Current assets | 104,889 | 86,335 |
Non-current assets | 816,301 | 768,161 |
Current liabilities | (132,266) | (136,150) |
Non-current liabilities | (199,675) | (103,243) |
Net assets | 589,249 | 615,103 |
Net assets attributable to owners of the Company | 525,235 | 526,241 |
Net assets attributable to non-controlling interests | 64,014 | 88,862 |
Share of net assets from associates | 73,533 | 73,674 |
Carrying Amounts | 73,533 | 73,674 |
Sinopec Finance | ||
INTEREST IN ASSOCIATES | ||
Current assets | 212,850 | 194,458 |
Non-current assets | 57,394 | 55,086 |
Current liabilities | (236,840) | (217,987) |
Non-current liabilities | (673) | (602) |
Net assets | 32,731 | 30,955 |
Net assets attributable to owners of the Company | 32,731 | 30,955 |
Share of net assets from associates | 16,038 | 15,168 |
Carrying Amounts | 16,038 | 15,168 |
Sinopec Capital | ||
INTEREST IN ASSOCIATES | ||
Current assets | 14,444 | 13,140 |
Non-current assets | 249 | 102 |
Current liabilities | (101) | (28) |
Non-current liabilities | (990) | (676) |
Net assets | 13,602 | 12,538 |
Net assets attributable to owners of the Company | 13,602 | 12,538 |
Share of net assets from associates | 6,665 | 6,144 |
Carrying Amounts | 6,665 | 6,144 |
Zhongtian Synergetic Energy | ||
INTEREST IN ASSOCIATES | ||
Current assets | 3,212 | 3,532 |
Non-current assets | 51,035 | 51,331 |
Current liabilities | (3,811) | (8,577) |
Non-current liabilities | (23,435) | (22,216) |
Net assets | 27,001 | 24,070 |
Net assets attributable to owners of the Company | 27,001 | 24,070 |
Share of net assets from associates | 10,463 | 9,327 |
Carrying Amounts | 10,463 | 9,327 |
CIR | ||
INTEREST IN ASSOCIATES | ||
Current assets | 885 | 576 |
Non-current assets | 1,106 | 870 |
Current liabilities | (714) | (822) |
Non-current liabilities | (138) | (144) |
Net assets | 1,139 | 480 |
Net assets attributable to owners of the Company | 1,139 | 480 |
Share of net assets from associates | 570 | 240 |
Carrying Amounts | ¥ 570 | ¥ 240 |
INTEREST IN ASSOCIATES - SUMM_2
INTEREST IN ASSOCIATES - SUMMARIZED STATEMENT OF COMPREHENSIVE INCOME (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INTEREST IN ASSOCIATES | |||
Operating revenues | ¥ 3,318,168 | ¥ 2,740,884 | ¥ 2,104,724 |
Net income for the year | 75,643 | 85,851 | 42,271 |
Other comprehensive income | 21,829 | 17,507 | 315 |
Total comprehensive income | 97,472 | 103,358 | 42,586 |
PipeChina | |||
INTEREST IN ASSOCIATES | |||
Operating revenues | 112,832 | 101,572 | 22,766 |
Net income for the year | 31,908 | 29,776 | 6,444 |
Other comprehensive income | 2 | ||
Total comprehensive income | 31,908 | 29,778 | 6,444 |
Dividends declared by associates | 2,019 | 442 | |
Share of net income from associates | 3,670 | 3,205 | 709 |
Carrying Amounts | 73,533 | 73,674 | |
Sinopec Finance | |||
INTEREST IN ASSOCIATES | |||
Operating revenues | 5,636 | 5,177 | 4,742 |
Net income for the year | 2,338 | 2,168 | 2,027 |
Other comprehensive income | 89 | 26 | (372) |
Total comprehensive income | 2,427 | 2,194 | 1,655 |
Dividends declared by associates | 319 | 490 | |
Share of net income from associates | 1,145 | 1,062 | 993 |
Share of other comprehensive income from associates | 44 | 13 | (182) |
Carrying Amounts | 16,038 | 15,168 | |
Sinopec Capital | |||
INTEREST IN ASSOCIATES | |||
Operating revenues | 5 | 2 | 2 |
Net income for the year | 1,281 | 990 | 1,278 |
Other comprehensive income | (68) | ||
Total comprehensive income | 1,213 | 990 | 1,278 |
Dividends declared by associates | 73 | ||
Share of net income from associates | 627 | 485 | 626 |
Share of other comprehensive income from associates | (33) | ||
Carrying Amounts | 6,665 | 6,144 | |
Zhongtian Synergetic Energy | |||
INTEREST IN ASSOCIATES | |||
Operating revenues | 17,551 | 16,959 | 11,707 |
Net income for the year | 4,562 | 4,184 | 551 |
Total comprehensive income | 4,562 | 4,184 | 551 |
Dividends declared by associates | 632 | 86 | 284 |
Share of net income from associates | 1,768 | 1,621 | 214 |
Carrying Amounts | 10,463 | 9,327 | |
CIR | |||
INTEREST IN ASSOCIATES | |||
Operating revenues | 2,090 | 1,826 | 1,252 |
Net income for the year | 574 | 461 | 181 |
Other comprehensive income | 85 | 3 | (308) |
Total comprehensive income | 659 | 464 | (127) |
Dividends declared by associates | 1,152 | 2,517 | |
Share of net income from associates | 287 | 231 | 91 |
Share of other comprehensive income from associates | 43 | 2 | (154) |
Carrying Amounts | 570 | 240 | |
Aggregated individually immaterial associates | |||
INTEREST IN ASSOCIATES | |||
Share of net income from associates | 6,844 | 7,283 | 3,444 |
Share of other comprehensive income from associates | (244) | 271 | ¥ (1,101) |
Carrying Amounts | ¥ 51,881 | ¥ 44,176 |
INTEREST IN JOINT VENTURES - PR
INTEREST IN JOINT VENTURES - PRINCIPAL JOINT VENTURES (Details) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | |
INTEREST IN JOINT VENTURES | |||
Particulars of issued and paid up capital | ¥ 119,896 | ¥ 121,071 | |
Fujian Refining & Petrochemical Company Limited ("FREP") | |||
INTEREST IN JOINT VENTURES | |||
Particulars of issued and paid up capital | ¥ 14,758 | ||
Percentage of equity held by Company's subsidiaries | 50% | 50% | |
BASF-YPC Company Limited ("BASF-YPC") | |||
INTEREST IN JOINT VENTURES | |||
Particulars of issued and paid up capital | ¥ 12,704 | ||
Percentage of equity held by the Company | 30% | ||
Percentage of equity held by Company's subsidiaries | 10% | 10% | |
Taihu Limited ("Taihu") | |||
INTEREST IN JOINT VENTURES | |||
Particulars of issued and paid up capital | $ | $ 25,000 | ||
Percentage of equity held by Company's subsidiaries | 49% | 49% | |
Sinopec SABIC Tianjin Petrochemical Company Limited ("Sinopec SABIC Tianjin") | |||
INTEREST IN JOINT VENTURES | |||
Particulars of issued and paid up capital | ¥ 10,520 | ||
Percentage of equity held by Company's subsidiaries | 50% | 50% | |
Shanghai SECCO | |||
INTEREST IN JOINT VENTURES | |||
Particulars of issued and paid up capital | ¥ 3,115 | ||
Percentage of equity held by the Company | 15% | ||
Percentage of equity held by Company's subsidiaries | 35% | 35% |
INTEREST IN JOINT VENTURES - SU
INTEREST IN JOINT VENTURES - SUMMARIZED FINANCIAL INFORMATION (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||||
Cash and cash equivalents | ¥ 93,438 | ¥ 108,590 | ¥ 87,559 | ¥ 60,438 |
Total current assets | 523,140 | 558,024 | ||
Non-current assets | 1,425,500 | 1,331,231 | ||
Current liabilities | ||||
Total current liabilities | (667,385) | (641,280) | ||
Non-current liabilities | ||||
Other non-current liabilities | (14,983) | (19,243) | ||
Total non-current liabilities | (345,017) | (332,901) | ||
Net assets attributable to owners of the Company | 784,706 | 774,182 | ||
Net assets attributable to non-controlling interests | 151,532 | 140,892 | ||
FREP | ||||
Current assets | ||||
Cash and cash equivalents | 3,733 | 6,562 | ||
Other current assets | 11,311 | 9,217 | ||
Total current assets | 15,044 | 15,779 | ||
Non-current assets | 12,708 | 13,744 | ||
Current liabilities | ||||
Current financial liabilities | (829) | (1,177) | ||
Other current liabilities | (9,951) | (5,008) | ||
Total current liabilities | (10,780) | (6,185) | ||
Non-current liabilities | ||||
Non-current financial liabilities | (3,742) | (6,857) | ||
Other non-current liabilities | (237) | (242) | ||
Total non-current liabilities | (3,979) | (7,099) | ||
Net assets | 12,993 | 16,239 | ||
Net assets attributable to owners of the Company | 12,993 | 16,239 | ||
Share of net assets from joint ventures | 6,497 | 8,120 | ||
Carrying Amounts | 6,497 | 8,120 | ||
BASF-YPC | ||||
Current assets | ||||
Cash and cash equivalents | 3,061 | 5,375 | ||
Other current assets | 5,993 | 6,953 | ||
Total current assets | 9,054 | 12,328 | ||
Non-current assets | 9,244 | 9,336 | ||
Current liabilities | ||||
Current financial liabilities | (63) | (77) | ||
Other current liabilities | (2,245) | (2,546) | ||
Total current liabilities | (2,308) | (2,623) | ||
Non-current liabilities | ||||
Other non-current liabilities | (107) | (92) | ||
Total non-current liabilities | (107) | (92) | ||
Net assets | 15,883 | 18,949 | ||
Net assets attributable to owners of the Company | 15,883 | 18,949 | ||
Share of net assets from joint ventures | 6,353 | 7,580 | ||
Carrying Amounts | 6,353 | 7,580 | ||
Taihu | ||||
Current assets | ||||
Cash and cash equivalents | 1,625 | 1,258 | ||
Other current assets | 15,269 | 2,188 | ||
Total current assets | 16,894 | 3,446 | ||
Non-current assets | 10,488 | 14,032 | ||
Current liabilities | ||||
Current financial liabilities | (55) | (32) | ||
Other current liabilities | (2,727) | (1,931) | ||
Total current liabilities | (2,782) | (1,963) | ||
Non-current liabilities | ||||
Non-current financial liabilities | (157) | (85) | ||
Other non-current liabilities | (1,852) | (1,439) | ||
Total non-current liabilities | (2,009) | (1,524) | ||
Net assets | 22,591 | 13,991 | ||
Net assets attributable to owners of the Company | 21,941 | 13,523 | ||
Net assets attributable to non-controlling interests | 650 | 468 | ||
Share of net assets from joint ventures | 10,751 | 6,626 | ||
Carrying Amounts | 10,751 | 6,626 | ||
Sinopec SABIC Tianjin | ||||
Current assets | ||||
Cash and cash equivalents | 4,506 | 4,820 | ||
Other current assets | 2,554 | 3,437 | ||
Total current assets | 7,060 | 8,257 | ||
Non-current assets | 18,466 | 18,835 | ||
Current liabilities | ||||
Current financial liabilities | (2,950) | (597) | ||
Other current liabilities | (3,282) | (3,547) | ||
Total current liabilities | (6,232) | (4,144) | ||
Non-current liabilities | ||||
Non-current financial liabilities | (6,393) | (7,599) | ||
Other non-current liabilities | (635) | (382) | ||
Total non-current liabilities | (7,028) | (7,981) | ||
Net assets | 12,266 | 14,967 | ||
Net assets attributable to owners of the Company | 12,266 | 14,967 | ||
Share of net assets from joint ventures | 6,133 | 7,484 | ||
Carrying Amounts | 6,133 | ¥ 7,484 | ||
Shanghai SECCO | ||||
Current assets | ||||
Cash and cash equivalents | 1,323 | |||
Other current assets | 3,647 | |||
Total current assets | 4,970 | |||
Non-current assets | 26,677 | |||
Current liabilities | ||||
Current financial liabilities | (6,609) | |||
Other current liabilities | (2,368) | |||
Total current liabilities | (8,977) | |||
Non-current liabilities | ||||
Other non-current liabilities | (944) | |||
Total non-current liabilities | (944) | |||
Net assets | 21,726 | |||
Net assets attributable to owners of the Company | 21,726 | |||
Share of net assets from joint ventures | 10,863 | |||
Carrying Amounts | ¥ 10,863 |
INTEREST IN JOINT VENTURES - _2
INTEREST IN JOINT VENTURES - SUMMARIZED STATEMENT OF COMPREHENSIVE INCOME (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
INTEREST IN JOINT VENTURES | |||
Operating revenues | ¥ 3,318,168 | ¥ 2,740,884 | ¥ 2,104,724 |
Depreciation, depletion and amortization | (109,906) | (115,680) | (107,461) |
Interest income | 6,266 | 5,732 | 4,803 |
Interest expense | (16,769) | (15,018) | (15,198) |
Earning/(loss) before income tax | 94,400 | 109,169 | 48,615 |
Income tax expense | (18,757) | (23,318) | (6,344) |
Net income/(loss) for the year | 75,643 | 85,851 | 42,271 |
Other comprehensive income | 21,829 | 17,507 | 315 |
Total comprehensive income | 97,472 | 103,358 | 42,586 |
FREP | |||
INTEREST IN JOINT VENTURES | |||
Operating revenues | 59,347 | 47,224 | 38,691 |
Depreciation, depletion and amortization | (1,822) | (2,789) | (2,222) |
Interest income | 107 | 147 | 118 |
Interest expense | (338) | (411) | (535) |
Earning/(loss) before income tax | (2,004) | 2,261 | 520 |
Income tax expense | 578 | (597) | (87) |
Net income/(loss) for the year | (1,426) | 1,664 | 433 |
Total comprehensive income | (1,426) | 1,664 | 433 |
Dividends declared by joint ventures | 910 | 128 | 300 |
Share of net income/(loss) from joint ventures | (713) | 832 | 217 |
Carrying Amounts | 6,497 | 8,120 | |
BASF-YPC | |||
INTEREST IN JOINT VENTURES | |||
Operating revenues | 25,076 | 27,499 | 15,701 |
Depreciation, depletion and amortization | (1,431) | (1,467) | (1,244) |
Interest income | 116 | 52 | 27 |
Interest expense | (7) | (5) | (16) |
Earning/(loss) before income tax | 3,542 | 8,218 | 1,518 |
Income tax expense | (885) | (2,054) | (379) |
Net income/(loss) for the year | 2,657 | 6,164 | 1,139 |
Total comprehensive income | 2,657 | 6,164 | 1,139 |
Dividends declared by joint ventures | 2,462 | 454 | 691 |
Share of net income/(loss) from joint ventures | 1,063 | 2,466 | 456 |
Carrying Amounts | 6,353 | 7,580 | |
Taihu | |||
INTEREST IN JOINT VENTURES | |||
Operating revenues | 19,542 | 15,190 | 9,528 |
Depreciation, depletion and amortization | (882) | (667) | (541) |
Interest income | 975 | 451 | 291 |
Interest expense | (274) | (107) | (20) |
Earning/(loss) before income tax | 1,657 | 2,864 | 2,304 |
Income tax expense | (201) | (601) | (378) |
Net income/(loss) for the year | 1,456 | 2,263 | 1,926 |
Other comprehensive income | 7,144 | (123) | (3,368) |
Total comprehensive income | 8,600 | 2,140 | (1,442) |
Share of net income/(loss) from joint ventures | 703 | 1,081 | 911 |
Share of other comprehensive income from joint ventures | 3,422 | (60) | (1,593) |
Carrying Amounts | 10,751 | 6,626 | |
Sinopec SABIC Tianjin | |||
INTEREST IN JOINT VENTURES | |||
Operating revenues | 24,294 | 24,631 | 14,881 |
Depreciation, depletion and amortization | (1,270) | (1,164) | (1,085) |
Interest income | 144 | 209 | 183 |
Interest expense | (111) | (89) | (131) |
Earning/(loss) before income tax | (2,396) | 1,393 | 954 |
Income tax expense | 603 | (407) | (236) |
Net income/(loss) for the year | (1,793) | 986 | 718 |
Total comprehensive income | (1,793) | 986 | 718 |
Dividends declared by joint ventures | 454 | 500 | |
Share of net income/(loss) from joint ventures | (897) | 493 | 359 |
Carrying Amounts | 6,133 | 7,484 | |
Aggregated individually immaterial joint ventures | |||
INTEREST IN JOINT VENTURES | |||
Share of net income/(loss) from joint ventures | (18) | 4,494 | 993 |
Share of other comprehensive income from joint ventures | (376) | 215 | ¥ 808 |
Carrying Amounts | ¥ 34,194 | ¥ 30,640 |
FINANCIAL ASSETS AT FAIR VALU_3
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Non-current assets | ||
Non-current financial assets at fair value through other comprehensive income | ¥ 730 | ¥ 767 |
Current assets | ||
Total financial assets at fair value through other comprehensive income | 4,237 | 6,706 |
Unlisted equity instruments | ||
Non-current assets | ||
Non-current financial assets at fair value through other comprehensive income | 616 | 588 |
Listed equity instruments | ||
Non-current assets | ||
Non-current financial assets at fair value through other comprehensive income | 114 | 179 |
Trade accounts receivable and bills receivable | ||
Current assets | ||
Current financial assets at fair value through other comprehensive income | ¥ 3,507 | ¥ 5,939 |
DEFERRED TAX ASSETS AND LIABI_3
DEFERRED TAX ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | ¥ 30,397 | ¥ 30,596 |
Deferred tax liabilities | (18,524) | (19,117) |
Receivables and inventories | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 4,271 | 3,763 |
Deferred tax liabilities | (17) | 0 |
Payables | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 3,091 | 2,858 |
Deferred tax liabilities | 0 | 0 |
Cash flow hedges | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 85 | 258 |
Deferred tax liabilities | (736) | (2,709) |
Property, plant and equipment | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 15,714 | 16,777 |
Deferred tax liabilities | (16,519) | (15,037) |
Tax losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 4,643 | 4,749 |
Deferred tax liabilities | 0 | 0 |
Financial assets at fair value through other comprehensive income | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 131 | 127 |
Deferred tax liabilities | (6) | (9) |
Intangible assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 1,067 | 1,008 |
Deferred tax liabilities | (85) | (492) |
Others | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 1,395 | 1,056 |
Deferred tax liabilities | ¥ (1,161) | ¥ (870) |
DEFERRED TAX ASSETS AND LIABI_4
DEFERRED TAX ASSETS AND LIABILITIES - Consolidated elimination amount (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
DEFERRED TAX ASSETS AND LIABILITIES | ||
Deferred tax assets | ¥ 10,445 | ¥ 11,207 |
Deferred tax liabilities | ¥ 10,445 | ¥ 11,207 |
DEFERRED TAX ASSETS AND LIABI_5
DEFERRED TAX ASSETS AND LIABILITIES - Amounts after the consolidated elimination adjustments (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
DEFERRED TAX ASSETS AND LIABILITIES | ||
Deferred tax assets | ¥ 19,952 | ¥ 19,389 |
Deferred tax liabilities | ¥ 8,079 | ¥ 7,910 |
DEFERRED TAX ASSETS AND LIABI_6
DEFERRED TAX ASSETS AND LIABILITIES - UNRECOGNIZED DEFERRED TAX OF CERTAIN SUBSIDIARIES - NARRATIVE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible tax losses carried forward | ¥ 21,268 | ¥ 18,342 |
Write-down of deferred tax assets related to expiration of tax loss | 8,972 | ¥ 5,564 |
Not later than one year [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible tax losses carried forward | 1,875 | |
Later than one year and not later than two years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible tax losses carried forward | 1,669 | |
Later than two years and not later than three years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible tax losses carried forward | 3,442 | |
Between three and four years [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible tax losses carried forward | 5,310 | |
Later than four years | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deductible tax losses carried forward | ¥ 8,972 |
DEFERRED TAX ASSETS AND LIABI_7
DEFERRED TAX ASSETS AND LIABILITIES - MOVEMENTS IN DEFERRED TAX ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | ¥ 11,479 | ¥ 16,930 | ¥ 10,807 |
Recognized in consolidated statement of income | (1,718) | (6,258) | 7,873 |
Recognized in other comprehensive income | (3,145) | (5,504) | (2,265) |
Others | 490 | 430 | 519 |
Transferred from reserve | 4,767 | 5,881 | (4) |
Balance at end of year | 11,873 | 11,479 | 16,930 |
Receivables and inventories | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 3,763 | 2,411 | 2,546 |
Recognized in consolidated statement of income | 514 | 1,378 | (122) |
Recognized in other comprehensive income | 0 | (26) | (12) |
Others | (23) | (1) | |
Transferred from reserve | 0 | 0 | |
Balance at end of year | 4,254 | 3,763 | 2,411 |
Payables | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 2,858 | 1,286 | 1,142 |
Recognized in consolidated statement of income | 233 | 1,572 | 144 |
Recognized in other comprehensive income | 0 | 0 | |
Others | 0 | 0 | |
Transferred from reserve | 0 | 0 | |
Balance at end of year | 3,091 | 2,858 | 1,286 |
Cash flow hedges | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | (2,451) | (2,630) | (268) |
Recognized in consolidated statement of income | 203 | (203) | (42) |
Recognized in other comprehensive income | (3,157) | (5,499) | (2,316) |
Others | (13) | 0 | |
Transferred from reserve | 4,767 | 5,881 | (4) |
Balance at end of year | (651) | (2,451) | (2,630) |
Property, plant and equipment | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 1,740 | 2,378 | 4,146 |
Recognized in consolidated statement of income | (3,341) | (1,004) | (2,244) |
Recognized in other comprehensive income | 0 | 41 | 127 |
Others | 796 | 325 | 349 |
Transferred from reserve | 0 | 0 | |
Balance at end of year | (805) | 1,740 | 2,378 |
Tax losses carried forward | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 4,749 | 13,322 | 3,594 |
Recognized in consolidated statement of income | 525 | (8,554) | 9,960 |
Recognized in other comprehensive income | 0 | (19) | (84) |
Others | (631) | (148) | |
Transferred from reserve | 0 | 0 | |
Balance at end of year | 4,643 | 4,749 | 13,322 |
Financial assets at fair value through other comprehensive income | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 118 | 116 | 124 |
Recognized in consolidated statement of income | (5) | (4) | |
Recognized in other comprehensive income | 12 | 2 | (4) |
Others | 0 | 0 | |
Transferred from reserve | 0 | 0 | |
Balance at end of year | 125 | 118 | 116 |
Intangible assets | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 516 | 352 | 87 |
Recognized in consolidated statement of income | 80 | 63 | 19 |
Recognized in other comprehensive income | 0 | 0 | |
Others | 386 | 101 | 246 |
Transferred from reserve | 0 | 0 | |
Balance at end of year | 982 | 516 | 352 |
Others | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Balance at beginning of year | 186 | (305) | (564) |
Recognized in consolidated statement of income | 73 | 490 | 162 |
Recognized in other comprehensive income | 0 | (3) | 24 |
Others | (25) | 4 | 73 |
Transferred from reserve | 0 | 0 | |
Balance at end of year | ¥ 234 | ¥ 186 | ¥ (305) |
LONG-TERM PREPAYMENTS AND OTH_3
LONG-TERM PREPAYMENTS AND OTHER ASSETS (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about long-term prepayments and other assets [line items] | ||
Operating rights of service stations | ¥ 28,009 | ¥ 29,714 |
Others (i) | 34,063 | 31,326 |
Balance as of end of year | 72,812 | 70,030 |
Third parties | ||
Disclosure of detailed information about long-term prepayments and other assets [line items] | ||
Prepayments for construction projects to third parties | 7,505 | 7,470 |
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 | ¥ 3,235 | ¥ 1,520 |
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, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about operating rights of service stations [line items] | ||
Balance as at beginning of year | ¥ 29,714 | |
Balance as at end of year | 28,009 | ¥ 29,714 |
Gross carrying amount | ||
Disclosure of detailed information about operating rights of service stations [line items] | ||
Balance as at beginning of year | 53,791 | 53,567 |
Additions | 880 | 912 |
Decreases | (541) | (688) |
Balance as at end of year | 54,130 | 53,791 |
Accumulated Depreciation And Amortization | ||
Disclosure of detailed information about operating rights of service stations [line items] | ||
Balance as at beginning of year | 24,077 | 21,711 |
Additions | 2,301 | 2,699 |
Decreases | (257) | (333) |
Balance as at end of year | ¥ 26,121 | ¥ 24,077 |
SHORT-TERM AND LONG-TERM DEBT_3
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES - Short-term debts (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about short-term debts and loans [line items] | ||
Short-term debts | ¥ 59,037 | ¥ 35,252 |
Loans from Sinopec Group Company and fellow subsidiaries | 7,292 | 2,873 |
Total short-term debts | ¥ 66,329 | ¥ 38,125 |
Weighted interest rates on short-term loans | 2.63% | 2.72% |
Third parties | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Short-term bank loans | ¥ 14,461 | ¥ 24,959 |
Current portion of long-term bank loans | 13,876 | 3,293 |
Current portion of long-term corporate bonds | 30,700 | 7,000 |
Short-term debts | 59,037 | 35,252 |
Current portion of long-term debts | 44,576 | 10,293 |
Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Current portion of long-term debts | 440 | 466 |
Loans from Sinopec Group Company and fellow subsidiaries | 7,292 | 2,873 |
Total short-term debts | 6,852 | 2,407 |
CNY | Third parties | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Short-term bank loans | 14,325 | 24,959 |
Current portion of long-term bank loans | 13,875 | 3,281 |
Current portion of long-term corporate bonds | 30,700 | 7,000 |
CNY | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Current portion of long-term bank loans | 440 | 466 |
Total short-term debts | 5,911 | 1,320 |
USD | Third parties | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Short-term bank loans | 136 | 0 |
Current portion of long-term bank loans | 1 | 12 |
USD | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Total short-term debts | 906 | 934 |
EUR | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about short-term debts and loans [line items] | ||
Total short-term debts | ¥ 35 | ¥ 153 |
SHORT-TERM AND LONG-TERM DEBT_4
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES - Long-term debts (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about long-term debts and loans [line items] | ||
Long-term debts | ¥ 85,706 | ¥ 78,300 |
Loans from Sinopec Group Company and fellow subsidiaries | 22,255 | 13,690 |
Total long-term debts | 107,961 | 91,990 |
Third parties | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Long-term bank loans | 86,585 | 38,944 |
Corporate bonds (i) | 43,697 | 49,649 |
Total third parties' long-term debts | 130,282 | 88,593 |
Less: Current portion | (44,576) | (10,293) |
Long-term debts | 85,706 | 78,300 |
Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Less: Current portion | (440) | (466) |
Loans from Sinopec Group Company and fellow subsidiaries | 22,255 | 13,690 |
CNY | Third parties | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Long-term bank loans | 86,532 | 38,880 |
Corporate bonds (i) | ¥ 31,534 | 38,522 |
CNY | Third parties | Top of Range | ||
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 | 3.20% | |
CNY | Third parties | Bottom of Range | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Weighted interest rates on long-term loans | 1% | |
Fixed interest rates on long-term loans | 2.20% | |
CNY | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Loans from Sinopec Group Company and fellow subsidiaries | ¥ 22,695 | 12,988 |
CNY | Sinopec Group Company and fellow subsidiaries | Third parties | Top of Range | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Weighted interest rates on long-term loans | 5.23% | |
CNY | Sinopec Group Company and fellow subsidiaries | Third parties | Bottom of Range | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Weighted interest rates on long-term loans | 1.08% | |
USD | Third parties | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Long-term bank loans | ¥ 53 | 64 |
Corporate bonds (i) | ¥ 12,163 | 11,127 |
USD | Third parties | Top of Range | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Weighted interest rates on long-term loans | 0% | |
Fixed interest rates on long-term loans | 4.25% | |
USD | Third parties | Bottom of Range | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Fixed interest rates on long-term loans | 3.13% | |
USD | Sinopec Group Company and fellow subsidiaries | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Loans from Sinopec Group Company and fellow subsidiaries | ¥ 1,168 | |
USD | Sinopec Group Company and fellow subsidiaries | Top of Range | ||
Disclosure of detailed information about long-term debts and loans [line items] | ||
Weighted interest rates on long-term loans | 1.65% |
LEASE LIABILITIES (Details)
LEASE LIABILITIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
LEASE LIABILITIES | ||
Current | ¥ 16,004 | ¥ 15,173 |
Non-current | 166,407 | 170,233 |
Lease liabilities | ¥ 182,411 | ¥ 185,406 |
TRADE ACCOUNTS PAYABLE AND BI_3
TRADE ACCOUNTS PAYABLE AND BILLS PAYABLE (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of trade accounts and bills payable [line items] | ||
Trade accounts payable | ¥ 258,642 | ¥ 203,919 |
Bills payable | 10,782 | 11,721 |
Trade accounts payable and bills payable measured at amortized cost | 269,424 | 215,640 |
Sinopec Group Company And Fellow Subsidiaries [Member] | ||
Disclosure of trade accounts and bills payable [line items] | ||
Trade accounts payable | 25,358 | 4,227 |
Associates And Joint Parties [Member] | ||
Disclosure of trade accounts and bills payable [line items] | ||
Trade accounts payable | 8,290 | 6,145 |
Third Parties [Member] | ||
Disclosure of trade accounts and bills payable [line items] | ||
Trade accounts payable | ¥ 224,994 | ¥ 193,547 |
CONTRACT LIABILITIES (Details)
CONTRACT LIABILITIES (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Top of Range [Member] | ||
IFRS Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Period of performance obligations are satisfied and revenue is recognised | 1 year | 1 year |
OTHER PAYABLES (Details)
OTHER PAYABLES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
OTHER PAYABLES | ||
Salaries and welfare payable | ¥ 13,617 | ¥ 14,048 |
Interest payable | 549 | 822 |
Payables for constructions | 68,492 | 54,596 |
Other payables | 71,833 | 93,764 |
Taxes other than income tax | 23,655 | 76,458 |
Other payables, total | ¥ 178,146 | ¥ 239,688 |
PROVISIONS (Details)
PROVISIONS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
PROVISIONS | |||
Balance at beginning of the year | ¥ 40,495 | ¥ 43,713 | ¥ 42,438 |
Provision for the year | 4,277 | 2,163 | 1,563 |
Accretion expenses | 1,103 | 1,135 | 1,343 |
Decrease for the year | (2,438) | (6,435) | (1,490) |
Exchange adjustments | 162 | (81) | (141) |
Balance at end of the year | ¥ 43,599 | ¥ 40,495 | ¥ 43,713 |
SHARE CAPITAL - REGISTERED, ISS
SHARE CAPITAL - REGISTERED, ISSUED AND FULLY PAID (Details) - CNY (¥) ¥ / shares in Units, ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2000 | 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 | ¥ 119,896 | ¥ 121,071 | |||
A shares | |||||
Disclosure of classes of share capital [line items] | |||||
Number of shares registered, issued and fully paid | 95,115,471,046 | 95,557,771,046 | |||
Par value per share | ¥ 1 | ¥ 1 | |||
Particulars of issued and paid up capital | ¥ 95,115 | ¥ 95,558 | |||
H shares | |||||
Disclosure of classes of share capital [line items] | |||||
Number of shares registered, issued and fully paid | 24,780,936,600 | 25,513,438,600 | |||
Par value per share | ¥ 1 | ¥ 1 | ¥ 1 | ||
Particulars of issued and paid up capital | ¥ 24,781 | ¥ 25,513 |
SHARE CAPITAL - REGISTERED, I_2
SHARE CAPITAL - REGISTERED, ISSUED AND FULLY PAID - NARRATIVE (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2013 item shares | Feb. 14, 2013 HKD ($) $ / shares | Jul. 31, 2001 ¥ / shares shares | Oct. 31, 2000 ¥ / shares $ / shares shares | Oct. 31, 2000 $ / shares ¥ / shares shares | Dec. 31, 2022 ¥ / shares shares | Dec. 31, 2021 ¥ / shares | Dec. 31, 2015 ¥ / shares shares | Dec. 31, 2014 ¥ / shares shares | Dec. 31, 2013 ¥ / shares shares | Feb. 14, 2013 ¥ / shares shares | Dec. 31, 2012 ¥ / shares shares | Dec. 31, 2011 ¥ / shares shares | Dec. 31, 2010 item ¥ / shares shares | Jul. 25, 2000 ¥ / shares shares | Feb. 25, 2000 ¥ / shares shares | |
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 | |||||||||||||||
Number of existing share | item | 10 | |||||||||||||||
Outside PRC [member] | ||||||||||||||||
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 | ¥ / shares | ¥ 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 [member] | ||||||||||||||||
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 [member] | Global initial public offering | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued | 15,102,439,000 | 15,102,439,000 | ||||||||||||||
H shares | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | ¥ 1 | ¥ 1 | ¥ 1 | ||||||||||||
Number of shares repurchased | 442,300,000 | |||||||||||||||
H shares | The Placing [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued | 2,845,234,000 | |||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | |||||||||||||||
Share price | $ / shares | $ 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 | |||||||||||||||
Number of shares repurchased | 732,502,000 | |||||||||||||||
H shares | Outside PRC [member] | Global initial public offering | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued | 12,521,864,000 | 12,521,864,000 | ||||||||||||||
Share price | $ / shares | ¥ 1.59 | |||||||||||||||
H shares | Outside PRC [member] | Global initial public offering | Sinopec Group Company [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued | 1,678,049,000 | 1,678,049,000 | ||||||||||||||
Par value per share | ¥ / shares | ¥ 1 | ¥ 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 | 100 | ||||||||||||||
American Depositary Shares | Outside PRC [member] | Global initial public offering | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued | 25,805,750 | 25,805,750 | ||||||||||||||
Share price | $ / shares | ¥ 20.645 | |||||||||||||||
Top of Range [Member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares authorised | 88,300,000,000 | |||||||||||||||
Top of Range [Member] | Outside PRC [member] | ||||||||||||||||
Disclosure of classes of share capital [line items] | ||||||||||||||||
Number of shares issued | 19,500,000,000 | |||||||||||||||
Top of Range [Member] | Outside PRC [member] | Sinopec Group Company [member] | ||||||||||||||||
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, 2022 | Dec. 31, 2021 |
SHARE CAPITAL | ||
Debt-to-capital ratio | 12.10% | 10.60% |
Liability-to-asset ratio | 52% | 51.60% |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES - CAPITAL COMMITMENTS (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Capital commitments [abstract] | ||
Authorized and contracted for (i) | ¥ 167,507 | ¥ 184,430 |
Authorized but not contracted for | 94,407 | 90,227 |
Total capital commitments | 261,914 | 274,657 |
Investment Commitments | ¥ 1,751 | ¥ 3,648 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES - EXPLORATION AND PRODUCTION LICENSES (Details) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) item | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Licences | |||
Disclosure of exploration and production licenses [line items] | |||
Payments incurred of exploration licenses fee and production right usage fees | ¥ | ¥ 270 | ¥ 181 | ¥ 231 |
Exploration licenses | |||
Disclosure of exploration and production licenses [line items] | |||
Frequency of renewal | item | 2 | ||
Term of renewal | 2 years | ||
Top of Range [Member] | 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 | ||
Top of Range [Member] | Production licenses | |||
Disclosure of exploration and production licenses [line items] | |||
Number of days prior to expiration of original term | 30 days | ||
Top of Range [Member] | Production licenses | Licenses with special dispensation | |||
Disclosure of exploration and production licenses [line items] | |||
Term of Licenses | 80 years | ||
Top of Range [Member] | Production licenses | Licenses without special dispensation | |||
Disclosure of exploration and production licenses [line items] | |||
Term of Licenses | 30 years |
COMMITMENTS AND CONTINGENT LI_5
COMMITMENTS AND CONTINGENT LIABILITIES - ESTIMATED FUTURE ANNUAL PAYMENTS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of estimated future annual payments [line items] | ||
estimated future annual payments | ¥ 1,701 | ¥ 1,535 |
Not later than one year [member] | ||
Disclosure of estimated future annual payments [line items] | ||
estimated future annual payments | 369 | 301 |
Later than one year and not later than two years [member] | ||
Disclosure of estimated future annual payments [line items] | ||
estimated future annual payments | 152 | 112 |
Later than two years and not later than three years [member] | ||
Disclosure of estimated future annual payments [line items] | ||
estimated future annual payments | 146 | 110 |
Between three and four years [member] | ||
Disclosure of estimated future annual payments [line items] | ||
estimated future annual payments | 115 | 102 |
Between four and five years [member] | ||
Disclosure of estimated future annual payments [line items] | ||
estimated future annual payments | 62 | 64 |
Thereafter [member] | ||
Disclosure of estimated future annual payments [line items] | ||
estimated future annual payments | ¥ 857 | ¥ 846 |
COMMITMENTS AND CONTINGENT LI_6
COMMITMENTS AND CONTINGENT LIABILITIES - CONTINGENT LIABILITIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | ¥ 8,927 | ¥ 14,863 |
Liability accrued for a loss under guarantee | 0 | 0 |
Joint ventures | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | 8,927 | 9,117 |
Zhongan United Coal Chemical Co. Ltd | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | 5,254 | 5,680 |
Guarantee in respect to standby credit facilities granted by banks | 7,100 | 7,100 |
Amur Gas | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | 3,673 | 3,264 |
Guarantee in respect to standby credit facilities granted by banks | 25,351 | 23,208 |
Amur Gas | Raw material supply agreement | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | 16,924 | 15,493 |
Associates | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | ¥ 5,746 | |
Zhongtian Synergetic Energy | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Guarantees | 5,746 | |
Guarantee in respect to standby credit facilities granted by banks | ¥ 17,050 |
COMMITMENTS AND CONTINGENT LI_7
COMMITMENTS AND CONTINGENT LIABILITIES - ENVIRONMENTAL CONTINGENCIES - NARRATIVES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENT LIABILITIES | |||
pollutant discharge fees | ¥ 16,823 | ¥ 10,968 | ¥ 11,368 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) ¥ in Millions | Mar. 26, 2021 CNY (¥) |
Sinopec Assets Management Corporation [Member] | |
Disclosure of detailed information about business combination [line items] | |
Consideration transferred | ¥ 6,124 |
RELATED PARTY TRANSACTIONS - TR
RELATED PARTY TRANSACTIONS - TRANSACTIONS WITH SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | |||
Interest income | ¥ 6,266,000,000 | ¥ 5,732,000,000 | ¥ 4,803,000,000 |
Interest expense | 16,769,000,000 | 15,018,000,000 | 15,198,000,000 |
Interest expense on lease liabilities | 9,096,000,000 | 9,200,000,000 | 9,349,000,000 |
Guarantees | 8,927,000,000 | 14,863,000,000 | |
Sinopec Group Company and fellow subsidiaries, associates and joint ventures [member] | |||
Disclosure of transactions between related parties [line items] | |||
Sales of goods | 352,691,000,000 | 297,381,000,000 | 228,307,000,000 |
Purchases | 184,986,000,000 | 191,888,000,000 | 151,300,000,000 |
Transportation and storage | 18,291,000,000 | 19,443,000,000 | 8,734,000,000 |
Exploration and development services | 37,317,000,000 | 33,930,000,000 | 31,444,000,000 |
Production related services | 48,465,000,000 | 44,405,000,000 | 31,915,000,000 |
Ancillary and social services | 1,730,000,000 | 2,952,000,000 | |
Agency commission income | 173,000,000 | 194,000,000 | 160,000,000 |
Interest income | 1,203,000,000 | 715,000,000 | 704,000,000 |
Interest expense | 541,000,000 | 385,000,000 | 919,000,000 |
Net deposits placed with related parties | (3,382,000,000) | (8,265,000,000) | (17,585,000,000) |
Net funds (placed with)/obtained from related parties | 36,608,000,000 | 30,305,000,000 | (31,144,000,000) |
Interest expense on lease liabilities | 7,811,000,000 | 7,863,000,000 | |
Rental paid for land | 11,051,000,000 | 10,834,000,000 | 11,090,000,000 |
Rental paid for buildings | 943,000,000 | 572,000,000 | 571,000,000 |
Rental paid for others | 352,000,000 | 269,000,000 | ¥ 330,000,000 |
Guarantees | 0 | 0 | |
Finance companies | |||
Disclosure of transactions between related parties [line items] | |||
deposits placed with related parties | ¥ 65,064,000,000 | ¥ 61,682,000,000 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - TRANSACTIONS WITH SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES - NARRATIVE (Details) - Y | 12 Months Ended | |
Jan. 01, 2000 | Dec. 31, 2000 | |
Land | ||
Disclosure of transactions between related parties [line items] | ||
Every number of years to renegotiate the rental amount for land | 3 | |
Buildings | ||
Disclosure of transactions between related parties [line items] | ||
Lease term | 20 years | |
Bottom of Range [Member] | Mutual Provision Agreement [member] | ||
Disclosure of transactions between related parties [line items] | ||
Terms to terminate agreements | 6 months | |
Bottom of Range [Member] | Land | ||
Disclosure of transactions between related parties [line items] | ||
Lease term | 40 years | |
Top of Range [Member] | Mutual Provision Agreement [member] | ||
Disclosure of transactions between related parties [line items] | ||
Percentage of profit margin of services | 6% | |
Top of Range [Member] | 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of transactions between related parties [line items] | ||
Trade accounts receivable | ¥ 46,364 | ¥ 34,861 |
Financial assets at fair value through other comprehensive income | 4,237 | 6,706 |
Prepaid expenses and other current assets | 64,639 | 69,431 |
Long-term prepayments and other assets | 72,812 | 70,030 |
Contract liabilities | 125,444 | 124,622 |
Other payables | 178,146 | 239,688 |
Other long-term liabilities | 14,983 | 19,243 |
Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries | 22,255 | 13,690 |
Lease liabilities (including to be paid within one year) | 182,411 | 185,406 |
Sinopec Group Company and fellow subsidiaries, associates and joint ventures [member] | ||
Disclosure of transactions between related parties [line items] | ||
Trade accounts receivable | 11,480 | 8,655 |
Financial assets at fair value through other comprehensive income | 596 | 186 |
Prepaid expenses and other current assets | 10,375 | 14,537 |
Long-term prepayments and other assets | 8,633 | 3,116 |
Total | 31,084 | 26,494 |
Trade accounts payable and bills payable | 38,337 | 14,170 |
Contract liabilities | 4,736 | 4,677 |
Other payables | 38,312 | 50,649 |
Other long-term liabilities | 5,180 | 2,779 |
Short-term loans and current portion of long-term loans from Sinopec Group Company and fellow subsidiaries | 7,292 | 2,873 |
Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries | 22,255 | 13,690 |
Lease liabilities (including to be paid within one year) | 156,537 | 158,761 |
Total | ¥ 272,649 | ¥ 247,599 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |||
Short-term employee benefits | ¥ 9,299 | ¥ 4,612 | ¥ 5,753 |
Retirement scheme contributions | 566 | 379 | 342 |
Total | ¥ 9,865 | ¥ 4,991 | ¥ 6,095 |
EMPLOYEE BENEFITS PLAN (Details
EMPLOYEE BENEFITS PLAN (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of contribution retirement plan [line items] | |||
Contributions | ¥ 13,190 | ¥ 11,932 | ¥ 8,983 |
Top of Range [Member] | |||
Disclosure of contribution retirement plan [line items] | |||
Percentage of salaries, bonuses and certain allowances | 16% | ||
Supplementary retirement plan rate | 8% | ||
Bottom of Range [Member] | |||
Disclosure of contribution retirement plan [line items] | |||
Percentage of salaries, bonuses and certain allowances | 13% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) segment | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Disclosure of operating segments [line items] | |||
Number of reportable segments | segment | 5 | ||
Sales of goods | ¥ 3,257,356 | ¥ 2,679,500 | ¥ 2,048,654 |
Other operating revenues | 60,812 | 61,384 | 56,070 |
Sales of goods and other operating revenues | 3,318,168 | 2,740,884 | 2,104,724 |
Total segment operating income | 75,835 | 94,628 | 13,669 |
Share of profit/(loss) from associates and joint ventures | 14,479 | 23,253 | 6,712 |
Investment income | 14,060 | 298 | 37,744 |
Net finance costs | (9,974) | (9,010) | (9,510) |
Earnings before income tax | 94,400 | 109,169 | 48,615 |
Deferred tax assets | 19,952 | 19,389 | |
Total assets | 1,948,640 | 1,889,255 | 1,738,896 |
Income tax payable | 4,725 | 4,809 | |
Long-term debts | 85,706 | 78,300 | |
Loans from Sinopec Group Company and fellow subsidiaries | 29,547 | 16,563 | |
Deferred tax liabilities | 8,079 | 7,910 | |
Total liabilities | 1,012,402 | 974,181 | 851,194 |
Capital expenditure | 189,096 | 167,948 | 137,104 |
Depreciation, depletion and amortization | 109,906 | 115,680 | 107,461 |
Impairment losses on long-lived assets | 5,669 | 10,035 | 14,629 |
Non-current assets | 1,398,510 | 1,309,365 | 1,253,049 |
Mainland China | |||
Disclosure of operating segments [line items] | |||
Sales of goods and other operating revenues | 2,824,140 | 2,166,040 | 1,720,695 |
Non-current assets | 1,353,771 | 1,268,814 | 1,216,267 |
Singapore | |||
Disclosure of operating segments [line items] | |||
Sales of goods and other operating revenues | 263,087 | 278,024 | 215,846 |
Others | |||
Disclosure of operating segments [line items] | |||
Sales of goods and other operating revenues | 230,941 | 296,820 | 168,183 |
Non-current assets | 44,739 | 40,551 | 36,782 |
Operating segment | |||
Disclosure of operating segments [line items] | |||
Total assets | 1,520,018 | 1,410,148 | 1,307,467 |
Total liabilities | 809,470 | 810,880 | 703,717 |
Elimination of inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | (2,620,886) | (2,109,426) | (1,371,215) |
Total segment operating income | (1,820) | (4,421) | 4,417 |
Unallocated amounts | |||
Disclosure of operating segments [line items] | |||
Interest in associates and joint ventures | 233,941 | 209,179 | 188,342 |
Financial assets at fair value through other comprehensive income | 730 | 767 | 1,525 |
Deferred tax assets | 19,952 | 19,389 | 25,054 |
Cash and cash equivalents, time deposits with financial institutions | 145,052 | 221,989 | 188,057 |
Other unallocated assets | 28,947 | 27,783 | 28,451 |
Short-term debts | 59,037 | 35,252 | 23,769 |
Income tax payable | 4,725 | 4,809 | 6,586 |
Long-term debts | 85,706 | 78,300 | 72,037 |
Loans from Sinopec Group Company and fellow subsidiaries | 29,547 | 16,563 | 17,042 |
Deferred tax liabilities | 8,079 | 7,910 | 8,124 |
Other unallocated liabilities | 15,838 | 20,467 | 19,919 |
Exploration and production | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 192,330 | 156,026 | 104,524 |
Other operating revenues | 5,169 | 6,674 | 5,718 |
Share of profit/(loss) from associates and joint ventures | 2,883 | 2,783 | 2,117 |
Investment income | 55 | 13,118 | |
Capital expenditure | 83,300 | 68,148 | 56,416 |
Depreciation, depletion and amortization | 45,321 | 52,880 | 46,273 |
Impairment losses on long-lived assets | 2,891 | 2,467 | 8,495 |
Exploration and production | Operating segment | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 314,242 | 243,324 | 162,037 |
Total segment operating income | 53,716 | 4,685 | (16,476) |
Total assets | 412,543 | 371,100 | 354,024 |
Total liabilities | 179,151 | 166,486 | 163,588 |
Exploration and production | Elimination of inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 121,912 | 87,298 | 57,513 |
Refining | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 194,839 | 167,948 | 113,214 |
Other operating revenues | 3,875 | 5,161 | 4,633 |
Share of profit/(loss) from associates and joint ventures | (645) | 662 | (2,516) |
Investment income | 35 | (10) | 14,941 |
Capital expenditure | 22,863 | 22,469 | 24,756 |
Depreciation, depletion and amortization | 20,588 | 20,743 | 20,090 |
Impairment losses on long-lived assets | 2 | 860 | 1,923 |
Refining | Operating segment | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,571,264 | 1,380,403 | 939,433 |
Total segment operating income | 12,211 | 65,279 | (5,525) |
Total assets | 327,706 | 304,785 | 270,766 |
Total liabilities | 86,428 | 146,763 | 136,980 |
Refining | Elimination of inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,376,425 | 1,212,455 | 826,219 |
Marketing and distribution | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,660,924 | 1,367,605 | 1,062,447 |
Other operating revenues | 39,529 | 36,864 | 34,905 |
Share of profit/(loss) from associates and joint ventures | 3,142 | 3,731 | 2,200 |
Investment income | 31 | 3 | 8,980 |
Capital expenditure | 19,140 | 21,897 | 25,403 |
Depreciation, depletion and amortization | 23,461 | 23,071 | 23,196 |
Impairment losses on long-lived assets | 415 | 1,211 | 536 |
Marketing and distribution | Operating segment | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,674,345 | 1,374,680 | 1,067,301 |
Total segment operating income | 24,537 | 21,204 | 20,828 |
Total assets | 388,961 | 377,499 | 373,430 |
Total liabilities | 237,534 | 228,826 | 234,309 |
Marketing and distribution | Elimination of inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 13,421 | 7,075 | 4,854 |
Chemicals | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 449,911 | 424,774 | 322,169 |
Other operating revenues | 9,913 | 10,487 | 8,758 |
Share of profit/(loss) from associates and joint ventures | 3,365 | 11,323 | 1,723 |
Investment income | 14,258 | (54) | (61) |
Capital expenditure | 58,612 | 51,648 | 28,217 |
Depreciation, depletion and amortization | 17,716 | 16,093 | 14,830 |
Impairment losses on long-lived assets | 1,790 | 5,332 | 3,675 |
Chemicals | Operating segment | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 530,239 | 495,016 | 362,871 |
Total segment operating income | (14,127) | 11,106 | 10,818 |
Total assets | 242,794 | 222,803 | 190,789 |
Total liabilities | 84,472 | 69,977 | 49,625 |
Chemicals | Elimination of inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 80,328 | 70,242 | 40,702 |
Corporate and others | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 759,352 | 563,147 | 458,154 |
Other operating revenues | 2,326 | 2,198 | 2,056 |
Share of profit/(loss) from associates and joint ventures | 5,734 | 4,754 | 3,188 |
Investment income | (264) | 304 | 766 |
Capital expenditure | 5,181 | 3,786 | 2,312 |
Depreciation, depletion and amortization | 2,820 | 2,893 | 3,072 |
Impairment losses on long-lived assets | 571 | 165 | 0 |
Corporate and others | Operating segment | |||
Disclosure of operating segments [line items] | |||
Sales of goods | 1,788,152 | 1,295,503 | 888,227 |
Total segment operating income | 1,318 | (3,225) | (393) |
Total assets | 148,014 | 133,961 | 118,458 |
Total liabilities | 221,885 | 198,828 | 119,215 |
Corporate and others | Elimination of inter-segment sales | |||
Disclosure of operating segments [line items] | |||
Sales of goods | ¥ 1,028,800 | ¥ 732,356 | ¥ 430,073 |
PRINCIPAL SUBSIDIARIES (Details
PRINCIPAL SUBSIDIARIES (Details) ¥ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 HKD ($) | Dec. 31, 2021 CNY (¥) | |
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 119,896 | ¥ 121,071 | ||
Interests held by the Company | 100% | |||
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% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Coal chemical industry investment management, production and sale of coal chemical products | |||
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% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Manufacturing of intermediate petrochemical products and petroleum products | |||
Sinopec Overseas Investment Holding Limited ("SOIH") | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | $ | $ 3,423 | |||
Interests held by the Company | 100% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Investment holding of overseas business | |||
SIPL | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 8,250 | |||
Interests held by the Company | 100% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Investment in exploration, production and sale of petroleum and natural gas | |||
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% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Production and sale of polyester chips and polyester fibres | |||
Sinopec Lubricant Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 3,374 | |||
Interests held by the Company | 100% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Production and sale of refined petroleum products, lubricant base oil, and petrochemical materials | |||
China International United Petroleum and Chemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 5,000 | |||
Interests held by the Company | 100% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Trading of crude oil and petrochemical products | |||
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% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Manufacturing of intermediate petrochemical products and petroleum products | |||
Sinopec Catalyst Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 1,500 | |||
Interests held by the Company | 100% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Production and sale of catalyst products | |||
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% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Trading of petrochemical products | |||
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% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Marketing and distribution of petrochemical products | |||
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% | |||
Principal activities | Import and processing of crude oil, production, storage and sale of petroleum products and petrochemical products | |||
ZhongKe (Guangdong) Refinery & Petrochemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 6,397 | |||
Interests held by the Company | 90.30% | |||
Interests held by non-controlling interests | 9.70% | |||
Principal activities | Crude oil processing and petroleum products manufacturing | |||
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% | |||
Interests held by non-controlling interests | 15% | |||
Principal activities | Manufacturing of intermediate petrochemical products and petroleum products | |||
Sinopec Hainan Refining and Chemical Company Limited | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 9,606 | |||
Interests held by the Company | 100% | |||
Interests held by non-controlling interests | 0% | |||
Principal activities | Manufacturing of intermediate petrochemical products and petroleum products | |||
Marketing Company [member] | ||||
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% | |||
Principal activities | Marketing and distribution of refined petroleum products | |||
Sinopec Kantons [member] | ||||
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% | |||
Principal activities | Provision of crude oil jetty services and natural gas pipeline transmission services | |||
Sinopec-SK (Wuhan) Petrochemical Company Limited ("Sinopec-SK") | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 7,193 | |||
Interests held by the Company | 59% | |||
Interests held by non-controlling interests | 41% | |||
Principal activities | Production, sale, research and development of petrochemical products, ethylene and downstream byproducts | |||
Gaoqiao Petrochemical | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 10,000 | |||
Interests held by the Company | 55% | |||
Interests held by non-controlling interests | 45% | |||
Principal activities | Manufacturing of intermediate petrochemical products and petroleum products | |||
Baling Petrochemical (i) | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 3,000 | |||
Interests held by the Company | 55% | |||
Interests held by non-controlling interests | 45% | |||
Principal activities | Crude oil processing and petroleum products manufacturing | |||
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% | |||
Principal activities | Manufacturing of synthetic fibres, resin and plastics, intermediate petrochemical products and petroleum products | |||
Fujian Petrochemical | ||||
Disclosure of subsidiaries [line items] | ||||
Particulars of issued and paid up capital | ¥ 10,492 | |||
Interests held by the Company | 50% | |||
Interests held by non-controlling interests | 50% | |||
Principal activities | Manufacturing of plastics, intermediate petrochemical products and petroleum products |
PRINCIPAL SUBSIDIARIES - SUMMAR
PRINCIPAL SUBSIDIARIES - SUMMARIZED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of summarized consolidated balance sheet [line items] | ||
Current assets | ¥ 523,140 | ¥ 558,024 |
Current liabilities | (667,385) | (641,280) |
Non-current assets | 1,425,500 | 1,331,231 |
Non-current liabilities | (345,017) | (332,901) |
Net assets attributable to owners of the Company | 784,706 | 774,182 |
Net assets attributable to non-controlling interests | 151,532 | 140,892 |
Marketing Company [member] | ||
Disclosure of summarized consolidated balance sheet [line items] | ||
Current assets | 190,697 | 159,599 |
Current liabilities | (212,593) | (193,315) |
Net current (liabilities)/assets | (21,896) | (33,716) |
Non-current assets | 326,095 | 326,437 |
Non-current liabilities | (57,215) | (59,604) |
Net non-current assets/ (liabilities) | 268,880 | 266,833 |
Net assets | 246,984 | 233,117 |
Net assets attributable to owners of the Company | 166,974 | 157,557 |
Net assets attributable to non-controlling interests | 80,010 | 75,560 |
SIPL | ||
Disclosure of summarized consolidated balance sheet [line items] | ||
Current assets | 25,677 | 22,759 |
Current liabilities | (9,468) | (1,430) |
Net current (liabilities)/assets | 16,209 | 21,329 |
Non-current assets | 12,869 | 8,954 |
Non-current liabilities | (11,892) | (17,823) |
Net non-current assets/ (liabilities) | 977 | (8,869) |
Net assets | 17,186 | 12,460 |
Net assets attributable to owners of the Company | 10,121 | 6,341 |
Net assets attributable to non-controlling interests | 7,065 | 6,119 |
Shanghai Petrochemical | ||
Disclosure of summarized consolidated balance sheet [line items] | ||
Current assets | 15,766 | 20,932 |
Current liabilities | (13,998) | (15,796) |
Net current (liabilities)/assets | 1,768 | 5,136 |
Non-current assets | 25,370 | 25,988 |
Non-current liabilities | (783) | (747) |
Net non-current assets/ (liabilities) | 24,587 | 25,241 |
Net assets | 26,355 | 30,377 |
Net assets attributable to owners of the Company | 13,229 | 15,254 |
Net assets attributable to non-controlling interests | 13,126 | 15,123 |
Fujian Petrochemical | ||
Disclosure of summarized consolidated balance sheet [line items] | ||
Current assets | 1,901 | 1,464 |
Current liabilities | (169) | (142) |
Net current (liabilities)/assets | 1,732 | 1,322 |
Non-current assets | 10,215 | 13,208 |
Non-current liabilities | (707) | (700) |
Net non-current assets/ (liabilities) | 9,508 | 12,508 |
Net assets | 11,240 | 13,830 |
Net assets attributable to owners of the Company | 5,620 | 6,915 |
Net assets attributable to non-controlling interests | 5,620 | 6,915 |
Sinopec Kantons [member] | ||
Disclosure of summarized consolidated balance sheet [line items] | ||
Current assets | 5,436 | 4,761 |
Current liabilities | (209) | (196) |
Net current (liabilities)/assets | 5,227 | 4,565 |
Non-current assets | 7,902 | 8,195 |
Non-current liabilities | (232) | (170) |
Net non-current assets/ (liabilities) | 7,670 | 8,025 |
Net assets | 12,897 | 12,590 |
Net assets attributable to owners of the Company | 7,764 | 7,579 |
Net assets attributable to non-controlling interests | 5,133 | 5,011 |
Gaoqiao Petrochemical | ||
Disclosure of summarized consolidated balance sheet [line items] | ||
Current assets | 23,991 | 16,253 |
Current liabilities | (10,162) | (8,668) |
Net current (liabilities)/assets | 13,829 | 7,585 |
Non-current assets | 15,602 | 21,308 |
Non-current liabilities | (5,385) | (10,679) |
Net non-current assets/ (liabilities) | 10,217 | 10,629 |
Net assets | 24,046 | 18,214 |
Net assets attributable to owners of the Company | 13,225 | 10,018 |
Net assets attributable to non-controlling interests | 10,821 | 8,196 |
Sinopec-SK (Wuhan) Petrochemical Company Limited ("Sinopec-SK") | ||
Disclosure of summarized consolidated balance sheet [line items] | ||
Current assets | 5,781 | 6,791 |
Current liabilities | (8,488) | (8,122) |
Net current (liabilities)/assets | (2,707) | (1,331) |
Non-current assets | 20,251 | 20,650 |
Non-current liabilities | (7,806) | (7,512) |
Net non-current assets/ (liabilities) | 12,445 | 13,138 |
Net assets | 9,738 | 11,807 |
Net assets attributable to owners of the Company | 5,745 | 6,966 |
Net assets attributable to non-controlling interests | ¥ 3,993 | ¥ 4,841 |
PRINCIPAL SUBSIDIARIES - SUMM_2
PRINCIPAL SUBSIDIARIES - SUMMARIZED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | ¥ 3,318,168 | ¥ 2,740,884 | ¥ 2,104,724 |
Net income/(loss) for the year | 75,643 | 85,851 | 42,271 |
Total comprehensive income/(loss) | 97,472 | 103,358 | 42,586 |
Comprehensive income/(loss) attributable to non-controlling interests | 12,193 | 13,809 | 7,749 |
Marketing Company [member] | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 1,710,428 | 1,408,523 | 1,099,680 |
Net income/(loss) for the year | 19,902 | 18,582 | 22,415 |
Total comprehensive income/(loss) | 22,418 | 18,439 | 21,149 |
Comprehensive income/(loss) attributable to non-controlling interests | 8,110 | 6,822 | 7,205 |
Dividends paid to non-controlling interests | 3,453 | 7,064 | 2,766 |
SIPL | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 3,308 | 2,166 | 2,017 |
Net income/(loss) for the year | 2,576 | 1,429 | 1,160 |
Total comprehensive income/(loss) | 6,438 | 1,045 | (720) |
Comprehensive income/(loss) attributable to non-controlling interests | 2,659 | 579 | (287) |
Dividends paid to non-controlling interests | 0 | 0 | 316 |
Shanghai Petrochemical | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 82,443 | 89,198 | 74,624 |
Net income/(loss) for the year | (2,842) | 2,077 | 656 |
Total comprehensive income/(loss) | (2,665) | 2,218 | 645 |
Comprehensive income/(loss) attributable to non-controlling interests | (1,318) | 1,101 | 325 |
Dividends paid to non-controlling interests | 548 | 541 | 649 |
Fujian Petrochemical | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 4,931 | 5,549 | 4,871 |
Net income/(loss) for the year | (1,925) | 951 | 243 |
Total comprehensive income/(loss) | (1,925) | 951 | 243 |
Comprehensive income/(loss) attributable to non-controlling interests | (962) | 476 | 121 |
Dividends paid to non-controlling interests | 333 | 64 | 150 |
Sinopec Kantons [member] | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 529 | 528 | 1,064 |
Net income/(loss) for the year | 346 | 871 | 2,047 |
Total comprehensive income/(loss) | 734 | 677 | 1,814 |
Comprehensive income/(loss) attributable to non-controlling interests | 291 | 268 | 707 |
Dividends paid to non-controlling interests | 169 | 164 | 175 |
Gaoqiao Petrochemical | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 69,298 | 46,506 | 40,566 |
Net income/(loss) for the year | 3,157 | 3,536 | 902 |
Total comprehensive income/(loss) | 3,161 | 3,677 | 1,342 |
Comprehensive income/(loss) attributable to non-controlling interests | 1,423 | 1,655 | 604 |
Dividends paid to non-controlling interests | 984 | 256 | 1,759 |
Sinopec-SK (Wuhan) Petrochemical Company Limited ("Sinopec-SK") | |||
Disclosure of summarized consolidated statement of comprehensive income [line items] | |||
Operating revenues | 57,857 | 50,208 | 28,702 |
Net income/(loss) for the year | (1,101) | 1,606 | (920) |
Total comprehensive income/(loss) | (1,101) | 1,606 | (920) |
Comprehensive income/(loss) attributable to non-controlling interests | (451) | 659 | (377) |
Dividends paid to non-controlling interests | ¥ 397 | ¥ 0 | ¥ 0 |
PRINCIPAL SUBSIDIARIES - SUMM_3
PRINCIPAL SUBSIDIARIES - SUMMARIZED CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | ¥ 116,269 | ¥ 225,174 | ¥ 168,520 |
Net cash generated from (used in) investing activities | (95,010) | (145,198) | (102,650) |
Net cash (used in)/generated from financing activities | (39,699) | (57,942) | (37,510) |
Net increase/(decrease) in cash and cash equivalents | (18,440) | 22,034 | 28,360 |
Cash and cash equivalents as at January 1 | 108,590 | 87,559 | 60,438 |
Effect of foreign currency exchange rate changes | 3,288 | (1,003) | (1,239) |
Cash and cash equivalents as at December 31 | 93,438 | 108,590 | 87,559 |
Marketing Company [member] | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 43,408 | 28,923 | 54,139 |
Net cash generated from (used in) investing activities | (23,490) | 2,420 | (40,010) |
Net cash (used in)/generated from financing activities | (15,984) | (31,081) | (12,402) |
Net increase/(decrease) in cash and cash equivalents | 3,934 | 262 | 1,727 |
Cash and cash equivalents as at January 1 | 8,999 | 8,642 | 6,901 |
Effect of foreign currency exchange rate changes | 271 | 95 | 14 |
Cash and cash equivalents as at December 31 | 13,204 | 8,999 | 8,642 |
SIPL | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 1,458 | 690 | 281 |
Net cash generated from (used in) investing activities | 11,824 | 15 | (2,659) |
Net cash (used in)/generated from financing activities | (1,369) | (1,172) | 1,683 |
Net increase/(decrease) in cash and cash equivalents | 11,913 | (467) | (695) |
Cash and cash equivalents as at January 1 | 7,068 | 7,699 | 8,833 |
Effect of foreign currency exchange rate changes | 1,059 | (164) | (439) |
Cash and cash equivalents as at December 31 | 20,040 | 7,068 | 7,699 |
Shanghai Petrochemical | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | (7,459) | 3,950 | 1,680 |
Net cash generated from (used in) investing activities | 4,390 | (2,359) | (3,888) |
Net cash (used in)/generated from financing activities | (1,169) | (3,393) | 1,682 |
Net increase/(decrease) in cash and cash equivalents | (4,238) | (1,802) | (526) |
Cash and cash equivalents as at January 1 | 5,112 | 6,916 | 7,450 |
Effect of foreign currency exchange rate changes | 15 | (2) | (8) |
Cash and cash equivalents as at December 31 | 889 | 5,112 | 6,916 |
Fujian Petrochemical | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 2 | (292) | (244) |
Net cash generated from (used in) investing activities | 653 | 420 | (649) |
Net cash (used in)/generated from financing activities | (682) | (142) | 882 |
Net increase/(decrease) in cash and cash equivalents | (27) | (14) | (11) |
Cash and cash equivalents as at January 1 | 54 | 68 | 79 |
Effect of foreign currency exchange rate changes | 0 | 0 | 0 |
Cash and cash equivalents as at December 31 | 27 | 54 | 68 |
Sinopec Kantons [member] | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | 133 | 133 | 586 |
Net cash generated from (used in) investing activities | (1,153) | 1,276 | 3,846 |
Net cash (used in)/generated from financing activities | (434) | (1,066) | (1,250) |
Net increase/(decrease) in cash and cash equivalents | (1,454) | 343 | 3,182 |
Cash and cash equivalents as at January 1 | 3,432 | 3,182 | 117 |
Effect of foreign currency exchange rate changes | 246 | (93) | (117) |
Cash and cash equivalents as at December 31 | 2,224 | 3,432 | 3,182 |
Gaoqiao Petrochemical | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | (1,247) | (1,577) | 905 |
Net cash generated from (used in) investing activities | 4,235 | 1,432 | 1,347 |
Net cash (used in)/generated from financing activities | (2,986) | 146 | (4,257) |
Net increase/(decrease) in cash and cash equivalents | 2 | 1 | (2,005) |
Cash and cash equivalents as at January 1 | 1 | 1 | 2,006 |
Effect of foreign currency exchange rate changes | 0 | 0 | 0 |
Cash and cash equivalents as at December 31 | 3 | 1 | 1 |
Sinopec-SK (Wuhan) Petrochemical Company Limited ("Sinopec-SK") | |||
Disclosure of summarized statement of cash flows [line items] | |||
Net cash generated from/(used in) operating activities | (1,538) | 5,476 | (363) |
Net cash generated from (used in) investing activities | (1,556) | (1,789) | (2,340) |
Net cash (used in)/generated from financing activities | 1,541 | (653) | 2,176 |
Net increase/(decrease) in cash and cash equivalents | (1,553) | 3,034 | (527) |
Cash and cash equivalents as at January 1 | 4,100 | 1,066 | 1,593 |
Effect of foreign currency exchange rate changes | (3) | 0 | 0 |
Cash and cash equivalents as at December 31 | ¥ 2,544 | ¥ 4,100 | ¥ 1,066 |
PRINCIPAL SUBSIDIARIES -Additio
PRINCIPAL SUBSIDIARIES -Additional information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
PRINCIPAL SUBSIDIARIES | |
Ownership interest in subsidiary | 100% |
FINANCIAL RISK MANAGEMENT AND_3
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - CREDIT RISK (Details) | 12 Months Ended |
Dec. 31, 2022 customer | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Number of single customer accounted for greater than ten percent of total accounts receivable | 0 |
Basis period of other receivables expected loss | 12 months |
Top of Range [Member] | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Percentage of total accounts receivable | 10% |
FINANCIAL RISK MANAGEMENT AND_4
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - LIQUIDITY RISK - Narrative (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES | ||
Borrowings on unsecured basis due to standby credit facilities | ¥ 454,857 | ¥ 441,559 |
Weighted average interest rate per annum | 2.38% | 2.81% |
Outstanding borrowings under PRC financial institutions | ¥ 21,313 | ¥ 11,700 |
FINANCIAL RISK MANAGEMENT AND_5
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - LIQUIDITY RISK (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Short-term debts | ¥ 59,037 | ¥ 35,252 |
Long-term debts | 85,706 | 78,300 |
Loans from Sinopec Group Company and fellow subsidiaries | 29,547 | 16,563 |
Lease liabilities | 182,411 | 185,406 |
Derivative financial liabilities | 7,313 | 3,223 |
Trade accounts payable and bills payable | 269,424 | 215,640 |
Other payables | 121,716 | 117,420 |
Financial liabilities with contractual maturities | 755,154 | 651,804 |
Short-term debts, undiscounted cash flows | 59,774 | 35,871 |
Long-term debts, undiscounted cash flows | 94,823 | 85,718 |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 32,222 | 18,457 |
Lease liabilities, undiscounted cash flows | 299,176 | 296,485 |
Derivative financial liabilities, undiscounted cash flows | 7,313 | 3,223 |
Trade accounts payable and bills payable, undiscounted cash flow | 269,424 | 215,640 |
Other payables, undiscounted cash flow | 121,716 | 117,420 |
Total contractual undiscounted cash flows | 884,448 | 772,814 |
Not later than one year [member] | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Short-term debts, undiscounted cash flows | 59,774 | 35,871 |
Long-term debts, undiscounted cash flows | 2,207 | 2,169 |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 7,813 | 3,174 |
Lease liabilities, undiscounted cash flows | 16,699 | 15,833 |
Derivative financial liabilities, undiscounted cash flows | 7,313 | 3,223 |
Trade accounts payable and bills payable, undiscounted cash flow | 269,424 | 215,640 |
Other payables, undiscounted cash flow | 121,716 | 117,420 |
Total contractual undiscounted cash flows | 484,946 | 393,330 |
Later than one year and not later than two years [member] | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Short-term debts, undiscounted cash flows | 0 | 0 |
Long-term debts, undiscounted cash flows | 13,620 | 49,390 |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 4,288 | 604 |
Lease liabilities, undiscounted cash flows | 12,905 | 12,031 |
Derivative financial liabilities, undiscounted cash flows | 0 | 0 |
Trade accounts payable and bills payable, undiscounted cash flow | 0 | 0 |
Other payables, undiscounted cash flow | 0 | 0 |
Total contractual undiscounted cash flows | 30,813 | 62,025 |
More than 2 years but less than 5 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Short-term debts, undiscounted cash flows | 0 | 0 |
Long-term debts, undiscounted cash flows | 68,180 | 27,518 |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 13,962 | 10,712 |
Lease liabilities, undiscounted cash flows | 36,984 | 35,411 |
Derivative financial liabilities, undiscounted cash flows | 0 | 0 |
Trade accounts payable and bills payable, undiscounted cash flow | 0 | 0 |
Other payables, undiscounted cash flow | 0 | 0 |
Total contractual undiscounted cash flows | 119,126 | 73,641 |
Thereafter [member] | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Short-term debts, undiscounted cash flows | 0 | 0 |
Long-term debts, undiscounted cash flows | 10,816 | 6,641 |
Loans from Sinopec Group Company and fellow subsidiaries, undiscounted cash flows | 6,159 | 3,967 |
Lease liabilities, undiscounted cash flows | 232,588 | 233,210 |
Derivative financial liabilities, undiscounted cash flows | 0 | 0 |
Trade accounts payable and bills payable, undiscounted cash flow | 0 | 0 |
Other payables, undiscounted cash flow | 0 | 0 |
Total contractual undiscounted cash flows | ¥ 249,563 | ¥ 243,818 |
FINANCIAL RISK MANAGEMENT AND_6
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - INTEREST RATE RISK (Details) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES | ||
Estimated increase/decrease of variable interest rate on basis points | ¥ 100 | ¥ 100 |
Decrease/Increase in net income attributed to interest rate risk | ¥ 524,000,000 | ¥ 254,000,000 |
FINANCIAL RISK MANAGEMENT AND_7
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - COMMODITY RISK (Details) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2022 CNY (¥) $ / bbl | Dec. 31, 2021 CNY (¥) $ / bbl | |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES | ||
Derivative financial assets | ¥ 19,328 | ¥ 18,359 |
Derivative financial liabilities | ¥ 7,235 | ¥ 3,214 |
Increase/decrease in basic price of derivative financial instruments | $ / bbl | 10 | 10 |
Increase / Decrease In Net Income Attributed To Commodity Price Risk | ¥ 5,104 | ¥ 2,996 |
Decrease/Increase in other reserves attributed to commodity price risk | ¥ 192 | ¥ 1,160 |
FINANCIAL RISK MANAGEMENT AND_8
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE - ASSETS AND LIABILITIES (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of fair value measurement of assets [line items] | |||
Assets | ¥ 1,948,640 | ¥ 1,889,255 | ¥ 1,738,896 |
Liabilities | 1,012,402 | 974,181 | ¥ 851,194 |
Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 23,574 | 25,077 | |
Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 7,313 | 3,223 | |
Level 1 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 7,973 | 6,062 | |
Level 1 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 1,293 | 804 | |
Level 2 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 11,478 | 12,488 | |
Level 2 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 6,020 | 2,419 | |
Level 3 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 4,123 | 6,527 | |
Level 3 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 0 | ||
Derivative financial liabilities | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 7,313 | 3,223 | |
Derivative financial liabilities | Level 1 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 1,293 | 804 | |
Derivative financial liabilities | Level 2 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 6,020 | 2,419 | |
Derivative financial liabilities | Level 3 of fair value hierarchy | Financial liabilities at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Liabilities | 0 | ||
Equity investments | Financial assets at fair value through other comprehensive income | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 730 | 767 | |
Equity investments | Financial assets at fair value through profit or loss | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 2 | ||
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 | 114 | 179 | |
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 | 2 | ||
Equity investments | Level 2 of fair value hierarchy | Financial assets at fair value through other comprehensive income | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 0 | ||
Equity investments | Level 2 of fair value hierarchy | Financial assets at fair value through profit or loss | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 0 | ||
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 | 616 | 588 | |
Equity investments | 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 | 0 | ||
Derivative financial liabilities | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 19,335 | 18,371 | |
Derivative financial liabilities | Level 1 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 7,857 | 5,883 | |
Derivative financial liabilities | Level 2 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 11,478 | 12,488 | |
Derivative financial liabilities | Level 3 of fair value hierarchy | Financial assets at fair value | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 0 | ||
Trade Receivables [Member] | Financial assets at fair value through other comprehensive income | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 3,507 | 5,939 | |
Trade Receivables [Member] | 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 | 0 | ||
Trade Receivables [Member] | Level 2 of fair value hierarchy | Financial assets at fair value through other comprehensive income | |||
Disclosure of fair value measurement of assets [line items] | |||
Assets | 0 | ||
Trade Receivables [Member] | 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 | ¥ 3,507 | ¥ 5,939 |
FINANCIAL RISK MANAGEMENT AND_9
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - FINANCIAL INSTRUMENTS CARRIED OTHER THAN FAIR VALUE (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about fair values of financial instruments carried at other than fair value [line items] | ||
Carrying amount | ¥ 130,282 | ¥ 88,593 |
Fair value | ¥ 125,866 | ¥ 85,610 |
Bottom of Range [Member] | ||
Disclosure of detailed information about fair values of financial instruments carried at other than fair value [line items] | ||
Current market interest rates | 2.66% | 0.30% |
Top of Range [Member] | ||
Disclosure of detailed information about fair values of financial instruments carried at other than fair value [line items] | ||
Current market interest rates | 4.35% | 4.65% |
FINANCIAL RISK MANAGEMENT AN_10
FINANCIAL RISK MANAGEMENT AND FAIR VALUES - Exposure to Credit Risk and ECLs for Accounts Receivable (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of credit risk exposure [line items] | ||
Loss allowance | ¥ 4,079 | ¥ 4,033 |
Trade Receivables [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Loss allowance | 4,079 | 4,033 |
Trade Receivables [Member] | Not later than one year [member] | ||
Disclosure of credit risk exposure [line items] | ||
Loss allowance | 58 | 83 |
Trade Receivables [Member] | Later than one year and not later than two years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Loss allowance | 64 | 181 |
Trade Receivables [Member] | Later than two years and not later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Loss allowance | 181 | 3,190 |
Trade Receivables [Member] | Later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Loss allowance | ¥ 3,776 | ¥ 579 |
Expected credit loss collectively assessed | Trade Receivables [Member] | Not later than one year [member] | ||
Disclosure of credit risk exposure [line items] | ||
Weighted-average loss rate | 0.10% | 0.20% |
Expected credit loss collectively assessed | Trade Receivables [Member] | Later than one year and not later than two years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Weighted-average loss rate | 20.90% | 35.80% |
Expected credit loss collectively assessed | Trade Receivables [Member] | Later than two years and not later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Weighted-average loss rate | 43.40% | 50.60% |
Expected credit loss collectively assessed | Trade Receivables [Member] | Later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Weighted-average loss rate | 99.20% | 100% |
Gross Carrying Amount | Trade Receivables [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | ¥ 50,443 | ¥ 38,894 |
Gross Carrying Amount | Trade Receivables [Member] | Not later than one year [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | 46,097 | 34,263 |
Gross Carrying Amount | Trade Receivables [Member] | Later than one year and not later than two years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | 216 | 623 |
Gross Carrying Amount | Trade Receivables [Member] | Later than two years and not later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | 269 | 3,411 |
Gross Carrying Amount | Trade Receivables [Member] | Later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | 3,861 | 597 |
Gross Carrying Amount | Expected credit loss individually assessed | Trade Receivables [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | 10,723 | 8,312 |
Gross Carrying Amount | Expected credit loss individually assessed | Trade Receivables [Member] | Not later than one year [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | 7,014 | 4,280 |
Gross Carrying Amount | Expected credit loss individually assessed | Trade Receivables [Member] | Later than one year and not later than two years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | 29 | 500 |
Gross Carrying Amount | Expected credit loss individually assessed | Trade Receivables [Member] | Later than two years and not later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | 193 | 3,324 |
Gross Carrying Amount | Expected credit loss individually assessed | Trade Receivables [Member] | Later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | 3,487 | 208 |
Accumulated impairment | Expected credit loss individually assessed | Trade Receivables [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | (3,580) | (3,499) |
Accumulated impairment | Expected credit loss individually assessed | Trade Receivables [Member] | Not later than one year [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | (2) | (26) |
Accumulated impairment | Expected credit loss individually assessed | Trade Receivables [Member] | Later than one year and not later than two years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | (25) | (137) |
Accumulated impairment | Expected credit loss individually assessed | Trade Receivables [Member] | Later than two years and not later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | (148) | (3,146) |
Accumulated impairment | Expected credit loss individually assessed | Trade Receivables [Member] | Later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | (3,405) | (190) |
Accumulated impairment | Expected credit loss collectively assessed | Trade Receivables [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | (499) | (534) |
Accumulated impairment | Expected credit loss collectively assessed | Trade Receivables [Member] | Not later than one year [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | (56) | (57) |
Accumulated impairment | Expected credit loss collectively assessed | Trade Receivables [Member] | Later than one year and not later than two years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | (39) | (44) |
Accumulated impairment | Expected credit loss collectively assessed | Trade Receivables [Member] | Later than two years and not later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | (33) | (44) |
Accumulated impairment | Expected credit loss collectively assessed | Trade Receivables [Member] | Later than three years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Financial assets | ¥ (371) | ¥ (389) |
RESERVES (Details)
RESERVES (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance at beginning of year | ¥ 653,111 | ||
Distribution to sellers in the business combination of entities under common control (Note 35) | ¥ (6,124) | ||
Other contributions | 4,869 | 1,973 | ¥ 3,325 |
Transaction With Non-controlling Interests | (1,713) | (8,192) | (125) |
Other equity movements under the equity method | (1,009) | ||
Purchase of own shares | (4,179) | ||
Net income attributable to owners of the Company | 66,153 | 71,975 | 33,443 |
Final dividend inspect of the previous year, approved and paid during the year (Note (e)) | (37,532) | (15,739) | (23,004) |
Interim dividend (Note (f)) | (19,371) | (19,371) | (8,475) |
Other comprehensive income | 21,829 | 17,507 | 315 |
Amounts transferred to initial carrying amount of hedged items | (15,802) | (19,950) | 1 |
Others | (275) | 399 | (1,958) |
Balance at end of year | 664,810 | 653,111 | |
Capital Reserve [Member] | |||
Distribution to sellers in the business combination of entities under common control (Note 35) | (6,124) | ||
Other contributions | 2,678 | ||
Transaction With Non-controlling Interests | (1,396) | (138) | |
Other equity movements under the equity method | (1,009) | ||
Others | 22 | 319 | 870 |
Share Premium [Member] | |||
Purchase of own shares | (3,004) | ||
Statutory Reserve [Member] | |||
Appropriation | 4,610 | 3,944 | 1,857 |
Other Reserves [Member] | |||
Other comprehensive income | 19,126 | 17,574 | 1,406 |
Amounts transferred to initial carrying amount of hedged items | (15,363) | (19,302) | (47) |
Others | 149 | 723 | 200 |
Retained Earnings [Member] | |||
Final dividend inspect of the previous year, approved and paid during the year (Note (e)) | (37,532) | (15,739) | (23,004) |
Interim dividend (Note (f)) | (19,371) | (19,371) | (8,475) |
Appropriation | (4,610) | (3,944) | (1,857) |
Other comprehensive income | (12) | ||
Others | (150) | (802) | (665) |
The Company | |||
Balance at beginning of year | 653,111 | ||
Balance at end of year | 664,810 | 653,111 | |
The Company | Capital Reserve [Member] | |||
Balance at beginning of year | 27,062 | 34,263 | |
Distribution to sellers in the business combination of entities under common control (Note 35) | (6,124) | ||
Other contributions | 2,678 | ||
Transaction With Non-controlling Interests | (1,396) | ||
Other equity movements under the equity method | (1,009) | ||
Others | 22 | 319 | |
Balance at end of year | 28,753 | 27,062 | 34,263 |
The Company | Share Premium [Member] | |||
Balance at beginning of year | 55,850 | 55,850 | |
Purchase of own shares | (3,004) | ||
Balance at end of year | 52,846 | 55,850 | 55,850 |
The Company | Statutory Reserve [Member] | |||
Balance at beginning of year | 96,224 | 92,280 | |
Appropriation | 4,610 | 3,944 | 1,857 |
Balance at end of year | 100,834 | 96,224 | 92,280 |
The Company | Reserve Of Discretionary Participation Features [Member] | |||
Balance at beginning of year | 117,000 | 117,000 | |
Balance at end of year | 117,000 | 117,000 | 117,000 |
The Company | Other Reserves [Member] | |||
Balance at beginning of year | 2,495 | 3,500 | |
Other comprehensive income | 19,126 | 17,574 | |
Amounts transferred to initial carrying amount of hedged items | (15,363) | (19,302) | |
Others | 149 | 723 | |
Balance at end of year | 6,407 | 2,495 | 3,500 |
The Company | Retained Earnings [Member] | |||
Balance at beginning of year | 354,480 | 322,361 | |
Net income attributable to owners of the Company | 66,153 | 71,975 | |
Final dividend inspect of the previous year, approved and paid during the year (Note (e)) | (37,532) | (15,739) | |
Interim dividend (Note (f)) | (19,371) | (19,371) | |
Appropriation | (4,610) | (3,944) | |
Others | (150) | (802) | |
Balance at end of year | ¥ 358,970 | ¥ 354,480 | ¥ 322,361 |
RESERVES - NARRATIVE (Details)
RESERVES - NARRATIVE (Details) - CNY (¥) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stated rate of net income transferred to statutory surplus reserve | 10% | ||
Amount of retained earnings available for distribution | ¥ 100,947 | ¥ 116,440 | |
Final dividend per share in respect of the year proposed | ¥ 0.195 | ||
Final dividend in respect of the year proposed | ¥ 23,380 | ||
Final dividend per share in respect of the year approved | ¥ 0.31 | ¥ 0.13 | |
Final dividend in respect of the year approved | ¥ 37,532 | ¥ 15,739 | ¥ 23,004 |
Interim dividend per share for the year | ¥ 0.16 | ¥ 0.16 | |
Interim dividend | ¥ 19,371 | ¥ 19,371 | 8,475 |
Statutory Reserve [Member] | |||
Stated rate of net income transferred to statutory surplus reserve | 10% | ||
Appropriation | ¥ 4,610 | 3,944 | 1,857 |
Bottom of Range [Member] | |||
Stated rate of reserve to registered capital | 25% | ||
Top of Range [Member] | |||
Stated rate of reserve to registered capital | 50% | ||
The Company | Statutory Reserve [Member] | |||
Appropriation | ¥ 4,610 | ¥ 3,944 | ¥ 1,857 |
SUPPLEMENTAL INFORMATION - Oil
SUPPLEMENTAL INFORMATION - Oil and gas producing activities (Details) - CNY (¥) ¥ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Ifrs Capitalized Costs, Oil and Gas Producing Activities, Gross [Abstract] | |||
Total of the Group's and its equity method investments' net capitalized costs | ¥ 268,753 | ¥ 241,058 | ¥ 243,323 |
Group | |||
Ifrs Capitalized Costs, Oil and Gas Producing Activities, Gross [Abstract] | |||
Property cost, wells and related equipment's and facilities | 840,719 | 793,045 | 757,592 |
Supporting equipments and facilities | 202,262 | 188,766 | 184,638 |
Uncompleted wells, equipments and facilities | 53,142 | 43,349 | 37,445 |
Total capitalized costs | 1,096,123 | 1,025,160 | 979,675 |
Accumulated depreciation, depletion, amortization and impairment losses | (832,093) | (787,623) | (742,195) |
Net capitalized costs | 264,030 | 237,537 | 237,480 |
Equity method investments | |||
Ifrs Capitalized Costs, Oil and Gas Producing Activities, Gross [Abstract] | |||
Net capitalized costs | 4,723 | 3,521 | 5,843 |
Mainland China | |||
Ifrs Capitalized Costs, Oil and Gas Producing Activities, Gross [Abstract] | |||
Total of the Group's and its equity method investments' net capitalized costs | 262,626 | 235,625 | 235,914 |
Mainland China | Group | |||
Ifrs Capitalized Costs, Oil and Gas Producing Activities, Gross [Abstract] | |||
Property cost, wells and related equipment's and facilities | 796,403 | 752,352 | 716,683 |
Supporting equipments and facilities | 202,238 | 188,742 | 184,621 |
Uncompleted wells, equipments and facilities | 53,118 | 43,236 | 37,439 |
Total capitalized costs | 1,051,759 | 984,330 | 938,743 |
Accumulated depreciation, depletion, amortization and impairment losses | (789,133) | (748,705) | (702,829) |
Net capitalized costs | 262,626 | 235,625 | 235,914 |
Other countries | |||
Ifrs Capitalized Costs, Oil and Gas Producing Activities, Gross [Abstract] | |||
Total of the Group's and its equity method investments' net capitalized costs | 6,127 | 5,433 | 7,409 |
Other countries | Group | |||
Ifrs Capitalized Costs, Oil and Gas Producing Activities, Gross [Abstract] | |||
Property cost, wells and related equipment's and facilities | 44,316 | 40,693 | 40,909 |
Supporting equipments and facilities | 24 | 24 | 17 |
Uncompleted wells, equipments and facilities | 24 | 113 | 6 |
Total capitalized costs | 44,364 | 40,830 | 40,932 |
Accumulated depreciation, depletion, amortization and impairment losses | (42,960) | (38,918) | (39,366) |
Net capitalized costs | 1,404 | 1,912 | 1,566 |
Other countries | Equity method investments | |||
Ifrs Capitalized Costs, Oil and Gas Producing Activities, Gross [Abstract] | |||
Net capitalized costs | ¥ 4,723 | ¥ 3,521 | ¥ 5,843 |
SUPPLEMENTAL INFORMATION - Oi_2
SUPPLEMENTAL INFORMATION - Oil and gas exploration and development (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Ifrs Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Total costs incurred | ¥ 78,049 | ¥ 68,351 | ¥ 55,093 |
Mainland China | |||
Ifrs Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Total costs incurred | 76,253 | 67,352 | 54,388 |
Other countries | |||
Ifrs Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Total costs incurred | 1,796 | 999 | 705 |
Group | |||
Ifrs Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Exploration | 23,269 | 21,762 | 16,752 |
Development | 52,984 | 46,147 | 38,241 |
Total costs incurred | 76,253 | 67,909 | 54,993 |
Group | Mainland China | |||
Ifrs Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Exploration | 23,269 | 21,762 | 16,752 |
Development | 52,984 | 45,590 | 37,636 |
Total costs incurred | 76,253 | 67,352 | 54,388 |
Group | Other countries | |||
Ifrs Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Development | 557 | 605 | |
Total costs incurred | 557 | 605 | |
Equity method investments | |||
Ifrs Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Total costs incurred | 1,796 | 442 | 100 |
Equity method investments | Other countries | |||
Ifrs Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items] | |||
Total costs incurred | ¥ 1,796 | ¥ 442 | ¥ 100 |
SUPPLEMENTAL INFORMATION - Oper
SUPPLEMENTAL INFORMATION - Operations related to oil and gas producing activities (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Ifrs Results of Operations, Expense from Oil and Gas Producing Activities [Abstract] | |||
Results of operation from producing activities | ¥ 61,055 | ¥ 25,281 | ¥ (2,945) |
Mainland China | |||
Ifrs Results of Operations, Expense from Oil and Gas Producing Activities [Abstract] | |||
Results of operation from producing activities | 59,008 | 23,616 | (3,930) |
Other countries | |||
Ifrs Results of Operations, Expense from Oil and Gas Producing Activities [Abstract] | |||
Results of operation from producing activities | 2,047 | 1,665 | 985 |
Group | |||
Revenues | |||
Sales | 96,616 | 72,953 | 52,354 |
Transfers | 118,120 | 86,650 | 58,069 |
Total Revenue | 214,736 | 159,603 | 110,423 |
Ifrs Results of Operations, Expense from Oil and Gas Producing Activities [Abstract] | |||
Production costs excluding taxes | (50,385) | (49,649) | (44,595) |
Exploration expenses | (10,591) | (12,382) | (9,716) |
Depreciation, depletion, amortization and impairment losses | (46,771) | (54,104) | (52,608) |
Taxes other than income tax | (26,466) | (11,249) | (7,379) |
Earnings before taxation | 80,523 | 32,219 | (3,875) |
Income tax expense | (20,351) | (8,225) | 188 |
Results of operation from producing activities | 60,172 | 23,994 | (3,687) |
Group | Mainland China | |||
Revenues | |||
Sales | 96,616 | 72,953 | 52,354 |
Transfers | 114,812 | 84,484 | 56,052 |
Total Revenue | 211,428 | 157,437 | 108,406 |
Ifrs Results of Operations, Expense from Oil and Gas Producing Activities [Abstract] | |||
Production costs excluding taxes | (49,372) | (48,674) | (43,487) |
Exploration expenses | (10,591) | (12,382) | (9,716) |
Depreciation, depletion, amortization and impairment losses | (46,322) | (53,644) | (51,754) |
Taxes other than income tax | (26,466) | (11,249) | (7,379) |
Earnings before taxation | 78,677 | 31,488 | (3,930) |
Income tax expense | (19,669) | (7,872) | |
Results of operation from producing activities | 59,008 | 23,616 | (3,930) |
Group | Other countries | |||
Revenues | |||
Transfers | 3,308 | 2,166 | 2,017 |
Total Revenue | 3,308 | 2,166 | 2,017 |
Ifrs Results of Operations, Expense from Oil and Gas Producing Activities [Abstract] | |||
Production costs excluding taxes | (1,013) | (975) | (1,108) |
Depreciation, depletion, amortization and impairment losses | (449) | (460) | (854) |
Earnings before taxation | 1,846 | 731 | 55 |
Income tax expense | (682) | (353) | 188 |
Results of operation from producing activities | 1,164 | 378 | 243 |
Equity method investments | |||
Revenues | |||
Total Revenue | 11,170 | 8,812 | 4,913 |
Ifrs Results of Operations, Expense from Oil and Gas Producing Activities [Abstract] | |||
Production costs excluding taxes | (1,864) | (2,246) | (998) |
Depreciation, depletion, amortization and impairment losses | (847) | (533) | (940) |
Taxes other than income tax | (7,288) | (4,391) | (1,930) |
Earnings before taxation | 1,171 | 1,642 | 1,045 |
Income tax expense | (288) | (355) | (303) |
Results of operation from producing activities | 883 | 1,287 | 742 |
Equity method investments | Other countries | |||
Revenues | |||
Total Revenue | 11,170 | 8,812 | 4,913 |
Ifrs Results of Operations, Expense from Oil and Gas Producing Activities [Abstract] | |||
Production costs excluding taxes | (1,864) | (2,246) | (998) |
Depreciation, depletion, amortization and impairment losses | (847) | (533) | (940) |
Taxes other than income tax | (7,288) | (4,391) | (1,930) |
Earnings before taxation | 1,171 | 1,642 | 1,045 |
Income tax expense | (288) | (355) | (303) |
Results of operation from producing activities | ¥ 883 | ¥ 1,287 | ¥ 742 |
SUPPLEMENTAL INFORMATION - Net
SUPPLEMENTAL INFORMATION - Net reserve and quantities information (Details) | 12 Months Ended | ||
Dec. 31, 2022 Bcfe MMBbls | Dec. 31, 2021 Bcfe MMBbls | Dec. 31, 2020 Bcfe MMBbls | |
Proved developed and undeveloped reserves (oil) (million barrels) | |||
Beginning of year | 1,749 | 1,542 | 1,740 |
End of year | 1,962 | 1,749 | 1,542 |
Proved developed and undeveloped reserves (gas) (billion cubic feet | |||
Beginning of year | Bcfe | 8,456 | 8,191 | 7,225 |
End of year | Bcfe | 8,806 | 8,456 | 8,191 |
Group | |||
Proved developed and undeveloped reserves (oil) (million barrels) | |||
Beginning of year | 1,440 | 1,252 | 1,450 |
Revisions of previous estimates | 275 | 209 | (161) |
Improved recovery | 84 | 126 | 100 |
Extensions and discoveries | 108 | 101 | 119 |
Production | (248) | (248) | (256) |
End of year | 1,659 | 1,440 | 1,252 |
Non-controlling interest in proved developed and undeveloped reserves at the end of year | 6 | 8 | 5 |
Proved developed reserves | |||
Beginning of year | 1,315 | 1,145 | 1,343 |
End of year | 1,506 | 1,315 | 1,145 |
Proved undeveloped reserves | |||
Beginning of year | 125 | 107 | 107 |
End of year | 153 | 125 | 107 |
Proved developed and undeveloped reserves (gas) (billion cubic feet | |||
Beginning of year | Bcfe | 8,449 | 8,181 | 7,216 |
Revisions of previous estimates | Bcfe | 806 | 662 | 831 |
Improved recovery | Bcfe | 17 | 36 | 32 |
Extensions and discoveries | Bcfe | 664 | 678 | 1,171 |
Production | Bcfe | (1,134) | (1,108) | (1,069) |
End of year | Bcfe | 8,802 | 8,449 | 8,181 |
Proved developed reserves | |||
Beginning of year | Bcfe | 6,734 | 6,357 | 6,026 |
End of year | Bcfe | 7,135 | 6,734 | 6,357 |
Proved undeveloped reserves | |||
Beginning of year | Bcfe | 1,715 | 1,824 | 1,190 |
End of year | Bcfe | 1,667 | 1,715 | 1,824 |
Equity method investments | |||
Proved developed and undeveloped reserves (oil) (million barrels) | |||
Beginning of year | 309 | 290 | 290 |
Revisions of previous estimates | 9 | 33 | 12 |
Improved recovery | 6 | 1 | |
Extensions and discoveries | 4 | 10 | 12 |
Production | (25) | (25) | (24) |
End of year | 303 | 309 | 290 |
Proved developed reserves | |||
Beginning of year | 263 | 244 | 245 |
End of year | 260 | 263 | 244 |
Proved undeveloped reserves | |||
Beginning of year | 46 | 46 | 45 |
End of year | 43 | 46 | 46 |
Proved developed and undeveloped reserves (gas) (billion cubic feet | |||
Beginning of year | Bcfe | 7 | 10 | 9 |
Revisions of previous estimates | Bcfe | 1 | 4 | |
Production | Bcfe | (3) | (4) | (3) |
End of year | Bcfe | 4 | 7 | 10 |
Proved developed reserves | |||
Beginning of year | Bcfe | 6 | 8 | 9 |
End of year | Bcfe | 3 | 6 | 8 |
Proved undeveloped reserves | |||
Beginning of year | Bcfe | 1 | 2 | |
End of year | Bcfe | 1 | 1 | 2 |
Mainland China | |||
Proved developed and undeveloped reserves (oil) (million barrels) | |||
Beginning of year | 1,416 | 1,232 | 1,433 |
End of year | 1,642 | 1,416 | 1,232 |
Proved developed and undeveloped reserves (gas) (billion cubic feet | |||
Beginning of year | Bcfe | 8,449 | 8,181 | 7,216 |
End of year | Bcfe | 8,802 | 8,449 | 8,181 |
Mainland China | Group | |||
Proved developed and undeveloped reserves (oil) (million barrels) | |||
Beginning of year | 1,416 | 1,232 | 1,433 |
Revisions of previous estimates | 277 | 200 | (163) |
Improved recovery | 84 | 126 | 100 |
Extensions and discoveries | 108 | 101 | 111 |
Production | (243) | (243) | (249) |
End of year | 1,642 | 1,416 | 1,232 |
Proved developed reserves | |||
Beginning of year | 1,291 | 1,130 | 1,326 |
End of year | 1,489 | 1,291 | 1,130 |
Proved undeveloped reserves | |||
Beginning of year | 125 | 102 | 107 |
End of year | 153 | 125 | 102 |
Proved developed and undeveloped reserves (gas) (billion cubic feet | |||
Beginning of year | Bcfe | 8,449 | 8,181 | 7,216 |
Revisions of previous estimates | Bcfe | 806 | 662 | 831 |
Improved recovery | Bcfe | 17 | 36 | 32 |
Extensions and discoveries | Bcfe | 664 | 678 | 1,171 |
Production | Bcfe | (1,134) | (1,108) | (1,069) |
End of year | Bcfe | 8,802 | 8,449 | 8,181 |
Proved developed reserves | |||
Beginning of year | Bcfe | 6,734 | 6,357 | 6,026 |
End of year | Bcfe | 7,135 | 6,734 | 6,357 |
Proved undeveloped reserves | |||
Beginning of year | Bcfe | 1,715 | 1,824 | 1,190 |
End of year | Bcfe | 1,667 | 1,715 | 1,824 |
Other countries | |||
Proved developed and undeveloped reserves (oil) (million barrels) | |||
Beginning of year | 333 | 310 | 307 |
End of year | 320 | 333 | 310 |
Proved developed and undeveloped reserves (gas) (billion cubic feet | |||
Beginning of year | Bcfe | 7 | 10 | 9 |
End of year | Bcfe | 4 | 7 | 10 |
Other countries | Group | |||
Proved developed and undeveloped reserves (oil) (million barrels) | |||
Beginning of year | 24 | 20 | 17 |
Revisions of previous estimates | (2) | 9 | 2 |
Extensions and discoveries | 8 | ||
Production | (5) | (5) | (7) |
End of year | 17 | 24 | 20 |
Non-controlling interest in proved developed and undeveloped reserves at the end of year | 6 | 8 | 5 |
Proved developed reserves | |||
Beginning of year | 24 | 15 | 17 |
End of year | 17 | 24 | 15 |
Proved undeveloped reserves | |||
Beginning of year | 5 | ||
End of year | 5 | ||
Other countries | Equity method investments | |||
Proved developed and undeveloped reserves (oil) (million barrels) | |||
Beginning of year | 309 | 290 | 290 |
Revisions of previous estimates | 9 | 33 | 12 |
Improved recovery | 6 | 1 | |
Extensions and discoveries | 4 | 10 | 12 |
Production | (25) | (25) | (24) |
End of year | 303 | 309 | 290 |
Proved developed reserves | |||
Beginning of year | 263 | 244 | 245 |
End of year | 260 | 263 | 244 |
Proved undeveloped reserves | |||
Beginning of year | 46 | 46 | 45 |
End of year | 43 | 46 | 46 |
Proved developed and undeveloped reserves (gas) (billion cubic feet | |||
Beginning of year | Bcfe | 7 | 10 | 9 |
Revisions of previous estimates | Bcfe | 1 | 4 | |
Production | Bcfe | (3) | (4) | (3) |
End of year | Bcfe | 4 | 7 | 10 |
Proved developed reserves | |||
Beginning of year | Bcfe | 6 | 8 | 9 |
End of year | Bcfe | 3 | 6 | 8 |
Proved undeveloped reserves | |||
Beginning of year | Bcfe | 1 | 2 | |
End of year | Bcfe | 1 | 1 | 2 |
SUPPLEMENTAL INFORMATION - Chan
SUPPLEMENTAL INFORMATION - Changes in the standardized measure of discounted cash flows (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Discounted future net cash flows using discount factors | 10% | ||
Standardized measure of undiscounted future net cash flows | |||
Discounted future net cash flows attributable to non-controlling interests | ¥ 408,818 | ¥ 251,644 | ¥ 178,978 |
Changes in the standardized measure of discounted cash flows | |||
Net changes for the year | 157,174 | 72,666 | (105,604) |
Group | |||
Standardized measure of undiscounted future net cash flows | |||
Future cash flows | 1,490,949 | 941,015 | 595,159 |
Future production costs | (635,757) | (413,006) | (275,409) |
Future development costs | (98,212) | (79,562) | (80,785) |
Future income tax expenses | (190,893) | (113,598) | (11,758) |
Undiscounted future net cash flows | 566,087 | 334,849 | 227,207 |
10% annual discount for estimated timing of cash flows | (170,126) | (93,354) | (54,158) |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Total | 395,961 | 241,495 | 173,049 |
Discounted future net cash flows attributable to non-controlling interests | 681 | 370 | (1,284) |
Changes in the standardized measure of discounted cash flows | |||
Sales and transfers of oil and gas produced, net of production costs | (137,885) | (98,705) | (58,449) |
Net changes in prices and production costs | 185,589 | 135,697 | (122,641) |
Net changes in estimated future development cost | (22,685) | (7,413) | (11,628) |
Net changes due to extensions, discoveries and improved recoveries | 58,610 | 46,425 | 35,292 |
Revisions of previous quantity estimates | 78,310 | 42,637 | (1,901) |
Previously estimated development costs incurred during the year | 11,885 | 5,475 | 6,684 |
Accretion of discount | 32,342 | 16,448 | 31,940 |
Net changes in income taxes | (51,700) | (72,118) | 19,375 |
Net changes for the year | 154,466 | 68,446 | (101,328) |
Equity method investments | |||
Standardized measure of undiscounted future net cash flows | |||
Future cash flows | 57,107 | 49,217 | 31,259 |
Future production costs | (18,011) | (18,026) | (13,050) |
Future development costs | (7,393) | (6,328) | (5,712) |
Future income tax expenses | (5,831) | (4,513) | (1,740) |
Undiscounted future net cash flows | 25,872 | 20,350 | 10,757 |
10% annual discount for estimated timing of cash flows | (13,015) | (10,201) | (4,828) |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Total | 12,857 | 10,149 | 5,929 |
Changes in the standardized measure of discounted cash flows | |||
Sales and transfers of oil and gas produced, net of production costs | (2,018) | (2,174) | (1,984) |
Net changes in prices and production costs | 3,301 | 4,967 | (5,190) |
Net changes in estimated future development cost | (694) | (752) | (299) |
Net changes due to extensions, discoveries and improved recoveries | 562 | 503 | 403 |
Revisions of previous quantity estimates | 505 | 1,659 | 403 |
Previously estimated development costs incurred during the year | 311 | 287 | 232 |
Accretion of discount | 1,388 | 1,022 | 979 |
Net changes in income taxes | (647) | (1,292) | 1,180 |
Net changes for the year | 2,708 | 4,220 | (4,276) |
Mainland China | |||
Standardized measure of undiscounted future net cash flows | |||
Discounted future net cash flows attributable to non-controlling interests | 393,891 | 240,370 | 176,949 |
Mainland China | Group | |||
Standardized measure of undiscounted future net cash flows | |||
Future cash flows | 1,479,098 | 930,302 | 589,659 |
Future production costs | (630,922) | (407,903) | (271,824) |
Future development costs | (96,575) | (77,687) | (77,659) |
Future income tax expenses | (187,900) | (111,178) | (10,521) |
Undiscounted future net cash flows | 563,701 | 333,534 | 229,655 |
10% annual discount for estimated timing of cash flows | (169,810) | (93,164) | (52,706) |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Total | 393,891 | 240,370 | 176,949 |
Other countries | |||
Standardized measure of undiscounted future net cash flows | |||
Discounted future net cash flows attributable to non-controlling interests | 14,927 | 11,274 | 2,029 |
Other countries | Group | |||
Standardized measure of undiscounted future net cash flows | |||
Future cash flows | 11,851 | 10,713 | 5,500 |
Future production costs | (4,835) | (5,103) | (3,585) |
Future development costs | (1,637) | (1,875) | (3,126) |
Future income tax expenses | (2,993) | (2,420) | (1,237) |
Undiscounted future net cash flows | 2,386 | 1,315 | (2,448) |
10% annual discount for estimated timing of cash flows | (316) | (190) | (1,452) |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Total | 2,070 | 1,125 | (3,900) |
Discounted future net cash flows attributable to non-controlling interests | 681 | 370 | (1,284) |
Other countries | Equity method investments | |||
Standardized measure of undiscounted future net cash flows | |||
Future cash flows | 57,107 | 49,217 | 31,259 |
Future production costs | (18,011) | (18,026) | (13,050) |
Future development costs | (7,393) | (6,328) | (5,712) |
Future income tax expenses | (5,831) | (4,513) | (1,740) |
Undiscounted future net cash flows | 25,872 | 20,350 | 10,757 |
10% annual discount for estimated timing of cash flows | (13,015) | (10,201) | (4,828) |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Total | ¥ 12,857 | ¥ 10,149 | ¥ 5,929 |