SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For the month of October 2022
CHINA PETROLEUM & CHEMICAL CORPORATION
22 Chaoyangmen North Street,
Chaoyang District, Beijing, 100728
People's Republic of China
Tel: (8610) 59960114
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F ✔ Form 40-F _____
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ____ No ✔
(If "Yes" is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b): 82-__________. )
N/A
This Form 6-K consists of:
1. | A copy of next day disclosure return of China Petroleum & Chemical Corporation (the “Registrant”); |
2. | An announcement of appointing senior vice president; and |
3. | An announcement of 2022 third quarterly report of the Registrant; |
Each made by the Registrant on October 28, 2022.
Document 1
Next Day Disclosure Return
(Equity issuer - changes in issued share capital and/or share buybacks)
Instrument: | Equity issuer | Status: | New Submission | |
Name of Issuer: | China Petroleum & Chemical Corporation | |||
Date Submitted: | 28 October 2022 |
Section I must be completed by a listed issuer where there has been a change in its issued share capital which is discloseable pursuant to rule 13.25A of the Main Board Rules (the “Main Board Listing Rules”) / rule 17.27A of the GEM Rules (the “GEM Listing Rules”) Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Exchange”)
Section I | ||||||
1. Type of shares | Ordinary shares | Class of shares | Class H | Listed on SEHK (Note 11) | Yes | |
Stock code (if listed) | 00386 | Description | ||||
Issues of shares (Notes 6 and 7) | No. of shares | Issued shares as a % of existing number of issued shares before relevant share issue (Notes 4, 6 and 7) | Issue price per share (Notes 1 and 7) | Closing market price per share of the immediately preceding business day (Note 5) | % discount(-)/ premium of issue price to market price (Note 7) | |
Opening balance as at (Note 2) 27 October 2022 | 25,459,024,600 | |||||
1). Repurchase of shares (or other securities) but not cancelled Date of changes 28 October 2022 | 0 | 0 % | % | |||
Closing balance as at (Note 8) 28 October 2022 | 25,459,024,600 |
Page 1 of 5
2. Type of shares | Ordinary shares | Class of shares | Class A | Listed on SEHK (Note 11) | No | ||
Stock code (if listed) | Description | Listed on Shanghai Stock Exchange (stock code: 600028) | |||||
Issues of shares (Notes 6 and 7) | No. of shares | Issued shares as a % of existing number of issued shares before relevant share issue (Notes 4, 6 and 7) | Issue price per share (Notes 1 and 7) | Closing market price per share of the immediately preceding business day (Note 5) | % discount(-)/ premium of issue price to market price (Note 7) | ||
Opening balance as at (Note 2) 27 October 2022 | 95,557,771,046 | ||||||
1). Repurchase of shares (or other securities) but not cancelled Date of changes 17 October 2022 | 9,600,000 | 0.01 % | % | ||||
2). Repurchase of shares (or other securities) but not cancelled Date of changes 18 October 2022 | 16,000,000 | 0.01 % | % | ||||
3). Repurchase of shares (or other securities) but not cancelled Date of changes 19 October 2022 | 17,000,000 | 0.01 % | % | ||||
4). Repurchase of shares (or other securities) but not cancelled Date of changes 20 October 2022 | 14,999,971 | 0.01 % | % | ||||
5). Repurchase of shares (or other securities) but not cancelled Date of changes 21 October 2022 | 7,400,001 | 0.01 % | % | ||||
6). Repurchase of shares (or other securities) but not cancelled Date of changes 24 October 2022 | 11,600,000 | 0.01 % | % | ||||
7). Repurchase of shares (or other securities) but not cancelled Date of changes 25 October 2022 | 6,500,000 | 0.01 % | % | ||||
8). Repurchase of shares (or other securities) but not cancelled Date of changes 26 October 2022 | 6,500,000 | 0.01 % | % | ||||
9). Repurchase of shares (or other securities) but not cancelled Date of changes 27 October 2022 | 3,500,000 | 0.003 % | % | ||||
10). Repurchase of shares (or other securities) but not cancelled Date of changes 28 October 2022 | 9,500,000 | 0.01 % | % | ||||
Closing balance as at (Note 8) 28 October 2022 | 95,557,771,046 |
Remarks: | 1. The Company commenced H share repurchase on 21 September 2022 and has repurchased and cancelled 54,414,000 H shares as of 14 October 2022. 2. The Company commenced A share repurchase on 21 September 2022 and has repurchased 117,400,085 A shares as of 14 October 2022. 3. Issued shares as a % of existing number of issued shares before relevant share issue is calculated with reference to the Company's total number of issued shares of 121,016,795,646 shares (comprising 25,459,024,600 H shares and 95,557,771,046 A shares). |
Page 2 of 5
We hereby confirm to the best knowledge, information and belief that, in relation to each issue of securities as set out in Section I, it has been duly authorised by the board of directors of the listed issuer and, insofar as applicable: (Note 9) | ||
(i) | all money due to the listed issuer in respect of the issue of securities has been received by it; | |
(ii) | all pre-conditions for the listing imposed by the Main Board Listing Rules / GEM Listing Rules under "Qualifications of listing" have been fulfilled; | |
(iii) | all (if any) conditions contained in the formal letter granting listing of and permission to deal in the securities have been fulfilled; | |
(iv) | all the securities of each class are in all respects identical (Note 10); | |
(v) | all documents required by the Companies (Winding Up and Miscellaneous Provisions) Ordinance to be filed with the Registrar of Companies have been duly filed and that compliance has been made with other legal requirements; | |
(vi) | all the definitive documents of title have been delivered/are ready to be delivered/are being prepared and will be delivered in accordance with the terms of issue; | |
(vii) | completion has taken place of the purchase by the issuer of all property shown in the listing document to have purchased or agreed to be purchased by it and the purchase consideration for all such property has been duly satisfied; and | |
(viii) | the trust deed/deed poll relating to the debenture, loan stock, notes or bonds has been completed and executed, and particulars thereof, if so required by law, have been filed with the Registrar of Companies. |
Notes to Section I:
1. | Where shares have been issued at more than one issue price per share, a weighted average issue price per share should be given. |
2. | Please insert the closing balance date of the last Next Day Disclosure Return published pursuant to Main Board Rule 13.25A / GEM Rule 17.27A or Monthly Return pursuant to Main Board Rule 13.25B / GEM Rule 17.27B, whichever is the later. |
3. | Please set out all changes in issued share capital requiring disclosure pursuant to Main Board Rule 13.25A / GEM Rule 17.27A together with the relevant dates of issue. Each category will need to be disclosed individually with sufficient information to enable the user to identify the relevant category in the listed issuer's Monthly Return. For example, multiple issues of shares as a result of multiple exercises of share options under the same share option scheme or of multiple conversions under the same convertible note must be aggregated and disclosed as one category. However, if the issues resulted from exercises of share options under 2 share option schemes or conversions of 2 convertible notes, these must be disclosed as 2 separate categories. |
4. | The percentage change in the number of issued shares of listed issuer is to be calculated by reference to the listed issuer's total number of shares in issue (excluding for such purpose any shares repurchased or redeemed but not yet cancelled) as it was immediately before the earliest relevant event which has not been disclosed in a Monthly Return or Next Day Disclosure Return. |
5. | Where trading in the shares of the listed issuer has been suspended, “closing market price per share of the immediately preceding business day” should be construed as “closing market price per share of the business day on which the shares were last traded”. |
6. | In the context of a repurchase of shares: |
• | “issues of shares” should be construed as “repurchases of shares”; and |
Page 3 of 5
• | “issued shares as a % of existing number of shares before relevant share issue” should be construed as “repurchased shares as a % of existing number of shares before relevant share repurchase”. |
7. | In the context of a redemption of shares: |
• | “issues of shares” should be construed as “redemptions of shares”; |
• | “issued shares as a % of existing number of shares before relevant share issue” should be construed as “redeemed shares as a % of existing number of shares before relevant share redemption”; and |
• | “issue price per share” should be construed as “redemption price per share”. |
8. | The closing balance date is the date of the last relevant event being disclosed. |
9. | Items (i) to (viii) are suggested forms of confirmation which may be amended to meet individual cases. |
10. | “Identical” means in this context: |
• | the securities are of the same nominal value with the same amount called up or paid up; |
• | they are entitled to dividend/interest at the same rate and for the same period, so that at the next ensuing distribution, the dividend/interest payable per unit will amount to exactly the same sum (gross and net); and |
• | they carry the same rights as to unrestricted transfer, attendance and voting at meetings and rank pari passu in all other respects. |
11. | SEHK refers to Stock Exchange of Hong Kong. |
Page 4 of 5
Section II must also be completed by a listed issuer where it has made a repurchase of shares which is discloseable under Main Board Rule 10.06(4)(a) / GEM Rule 13.13(1).
The issuer has Purchase report or additional information for issuer whose primary listing is on the Exchange
Section II | ||||||||||
1. Type of shares | Ordinary shares | Class of shares | Class A | Listed on SEHK (Note) | No | |||||
Stock code (if listed) | Description | Listed on Shanghai Stock Exchange (stock code: 600028) | ||||||||
A. Purchase report | ||||||||||
Trading date | Number of securities purchased | Method of purchase (Note) | Price per share or highest price paid $ | Lowest price paid $ | Total paid $ | |||||
1). 28 October 2022 | 9,500,000 | On another stock exchange Shanghai Stock Exchange | RMB | 4.33 | RMB | 4.27 | RMB | 40,798,305 | ||
Total number of securities purchased | 9,500,000 | Total paid $ | RMB | 40,798,305 | ||||||
B. Additional information for issuer whose primary listing is on the Exchange | ||||||||||
1). Number of such securities purchased on the Exchange in the year to date (since ordinary resolution)\ | (a) | |||||||||
2). % of number of shares in issue at time ordinary resolution passed acquired on the Exchange since date of resolution ( (a) x 100 )/ Number of shares in issue | % | |||||||||
We hereby confirm that the repurchases set out in A above which were made on the Exchange were made in accordance with the Main Board Listing Rules / GEM Listing Rules and that there have been no material changes to the particulars contained in the Explanatory Statement dated 31 March 2022 which has been filed with the Exchange. We also confirm that any purchases set out in A above which were made on another stock exchange were made in accordance with the domestic rules applying to purchases made on that other exchange. |
Note to Section II: Please state whether on the Exchange, on another stock exchange (stating the name of the exchange), by private arrangement or by general offer.
Submitted by: | Huang Wensheng | |
(Name) | ||
Title: | Vice President and Secretary to the Board of Directors | |
(Director, Secretary or other Duly Authorised Officer) |
Document 2
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibilities for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(a joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 00386)
Appointment of Senior Vice President
The board of directors (the “Board”) of China Petroleum & Chemical Corporation (the “Company” or “Sinopec Corp.”) hereby announces that Mr. Lv Lianggong has been appointed as Senior Vice President of Sinopec Corp. with a term commencing from the date of approval by the Board to the date when the term of the eighth session of the Board expires.
The biography details of Mr. Lv Lianggong are as follows:
Lv Lianggong, aged 56. Mr. Lv is a professor level senior engineer with a master’s degree. In December 2001, he was appointed as Deputy Manager of Sinopec Jinan Company; in August 2008, he was appointed as Manager and Deputy Secretary of the CPC Committee of Sinopec Jinan Company; in December 2008, he was appointed as General Manager and Deputy Secretary of the CPC Committee of Sinopec Jinan Company; in December 2016, he was appointed as General Manager and Deputy Secretary of the CPC Committee of Anqing Petrochemical General Plant of China Petrochemical Corporation and General Manager of Sinopec Anqing Company; in July 2017, he was appointed to serve a temporary position as a member of the Standing Committee of the CPC Anqing Municipal Committee; in September 2018, he was appointed as the General Manager and Deputy Secretary of the CPC Committee of Sinopec Zhenhai Refining & Chemical Company; in December 2019, he was appointed as Representative and Secretary of the CPC Committee of Sinopec Zhenhai Refining & Chemical Company; in December 2020, he was appointed as Deputy Chief Economist, Director General of Organization Department of Leading Party Member Group of China Petrochemical Corporation and President of Human Resource Department of Sinopec Corp.; in June 2021, he was appointed as Deputy Chief Economist, Director General of Organization Department of Leading Party Member Group and Director General of the Office of the
Organizational Structure Establishment Committee of Leading Party Member Group of China Petrochemical Corporation and President of Human Resource Department of Sinopec Corp.; in May 2022, he was elected as Supervisor of Sinopec Corp.; in August 2022, he was appointed as a Member of the Leading Party Member Group and Deputy General Manager of China Petrochemical Corporation.
The Board would like to take this opportunity to welcome Mr. Lv Lianggong to serve as Senior Vice President of Sinopec Corp.
By order of the Board | |
China Petroleum & Chemical Corporation | |
Huang Wensheng | |
Vice President, Secretary to the Board |
Beijing, PRC
28 October 2022
As of the date of this announcement, directors of the Company are: Ma Yongsheng*, Zhao Dong*, Yu Baocai#, Ling Yiqun#, Li Yonglin#, Liu Hongbin#, Cai Hongbin+, Ng, Kar Ling Johnny+, Shi Dan+ and Bi Mingjian+.
# Executive Director
* Non-executive Director
+ Independent Non-executive Director
Document 3
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibilities for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
(a joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 00386)
Overseas Regulatory Announcement
China Petroleum & Chemical Corporation
The Third Quarterly Report for 2022
This announcement is made pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).
By Order of the Board | |
China Petroleum & Chemical Corporation | |
Huang Wensheng | |
Vice President, Secretary to the Board of Directors |
Beijing, the PRC,
28 October 2022
As of the date of this announcement, directors of the Company are: Ma Yongsheng*, Zhao Dong*, Yu Baocai#, Ling Yiqun#, Li Yonglin#, Liu Hongbin#, Cai Hongbin+, Ng, Kar Ling Johnny+, Shi Dan+ and Bi Mingjian+.
# | Executive Director |
* | Non-executive Director |
+ | Independent Non-executive Director |
中国石油化工股份有限公司
China Petroleum & Chemical Corporation
The Third Quarterly Report for 2022
28 October 2022
Beijing China
Important notice
● | The Board of Directors, the Board of Supervisors of China Petroleum & Chemical Corporation (“Sinopec Corp.” or “the Company”) and its directors, supervisors and senior management warrant the authenticity, accuracy and completeness of the information contained in this report and there are no false representations, misleading statements or material omissions and severally and jointly accept full responsibility. |
● | The third quarterly report for 2022 was approved at the 13th meeting of the 8th Session of the Board of Directors of Sinopec Corp. All directors attended this meeting. |
● | Mr. Ma Yongsheng, Chairman, Mr. Yu Baocai, President, Ms. Shou Donghua, Chief Financial Officer and Head of the Financial Department of Sinopec Corp. warrant the authenticity, accuracy and completeness of the financial statements contained in this quarterly report. |
● | The financial statements in this quarterly report were not audited. |
2
1. Principal financial data
1.1 Principal financial data and indicators
1.1.1 Principal financial data and indicators prepared in accordance with China Accounting Standards for Business Enterprises (CASs)
RMB million
Items | As of 30 September 2022 | As of 31 December 2021 | Change (%) |
Total assets | 2,050,519 | 1,889,255 | 8.5 |
Total equity attributable to equity shareholders of the Company | 781,273 | 775,102 | 0.8 |
RMB million
Nine-months period ended 30 September | Change (%) | |||
2022 | 2021 (adjusted) | 2021 (before adjustment) | ||
Operating income | 2,453,322 | 2,001,691 | 2,003,350 | 22.6 |
Net profit attributable to equity shareholders of the Company | 56,660 | 60,029 | 59,892 | (5.6) |
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses | 55,452 | 58,720 | 58,720 | (5.6) |
Net cash flow from operating activities | 59,244 | 116,744 | 115,723 | (49.3) |
Basic earnings per share (RMB) | 0.468 | 0.496 | 0.495 | (5.6) |
Diluted earnings per share (RMB) | 0.468 | 0.496 | 0.495 | (5.6) |
Weighted average return on net assets (%) | 7.28 | 7.89 | 7.92 | (0.61) percentage points |
Note: The Company has completed the purchase of non-equity assets and liabilities of Sinopec Group Asset Management Co., Ltd. and Sinopec Beijing Yanshan Petrochemical Co., Ltd. on 1 December 2021. Sinopec Yizheng Chemical Fibre Company Limited, a subsidiary of Sinopec Corp., has completed the purchase of non-equity assets and liabilities of Sinopec Group Asset Management Co., Ltd. on 1 December 2021. The transactions described above have been accounted as business combination under common control, thus, the Company retroactively adjusted the relevant financial data.
1.1.2 Extraordinary items
RMB million
Extraordinary items | Three-months period ended 30 September 2022 (income) /expense | Nine-months period ended 30 September 2022 (income) /expense |
Net gain on disposal of non-current assets | (114) | (249) |
Donations | 23 | 124 |
Government grants | (669) | (2,009) |
Gains on holding and disposal of various investments | (69) | (194) |
Other extraordinary (income) /expenses, net | (95) | 193 |
Subtotal | (924) | (2,135) |
Tax effect | 198 | 673 |
Total | (726) | (1,462) |
Attributable to: | ||
Equity shareholders of the Company | (638) | (1,208) |
Minority interests | (88) | (254) |
3
1.1.3 Principal financial data and indicators prepared in accordance with International Financial Reporting Standards (IFRS)
RMB million
Items | As of 30 September 2022 | As of 31 December 2021 | Change (%) |
Total assets | 2,050,519 | 1,889,255 | 8.5 |
Total equity attributable to shareholders of the Company | 780,394 | 774,182 | 0.8 |
RMB million
Nine-months period ended 30 September | Change (%) | |||
2022 | 2021 (adjusted) | 2021 (before adjustment) | ||
Net cash from operating activities | 59,244 | 116,744 | 115,723 | (49.3) |
Operating profit | 75,886 | 85,025 | 84,806 | (10.7) |
Net profit attributable to shareholders of the Company | 57,284 | 60,892 | 60,755 | (5.9) |
Basic earnings per share (RMB) | 0.473 | 0.503 | 0.502 | (5.9) |
Diluted earnings per share (RMB) | 0.473 | 0.503 | 0.502 | (5.9) |
Return on net assets (%) | 7.34 | 7.88 | 7.91 | (0.54) percentage points |
Note: The Company has completed the purchase of non-equity assets and liabilities of Sinopec Group Asset Management Co., Ltd. and Sinopec Beijing Yanshan Petrochemical Co., Ltd. on 1 December 2021. Sinopec Yizheng Chemical Fibre Company Limited, a subsidiary of Sinopec Corp., has completed the purchase of non-equity assets and liabilities of Sinopec Group Asset Management Co., Ltd. on 1 December 2021. The transactions described above have been accounted as business combination under common control, thus, the Company retroactively adjusted the relevant financial data.
1.2 Significant changes in major items contained in the consolidated financial statements prepared in accordance with CASs.
Items of Consolidated Balance Sheet | As of 30 September 2022 | As of 31 December 2021 | Increase/ (Decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Financial assets held for trading | 1,030 | - | 1,030 | - | Impact of increase in structured deposits. |
Derivative financial assets | 43,768 | 18,371 | 25,397 | 138.2 | Impact of changes in profit and loss of crude oil and other products hedging business. |
Derivative financial liabilities | 16,454 | 3,223 | 13,231 | 410.5 | |
Accounts receivable | 65,796 | 34,861 | 30,935 | 88.7 | Increase in accounts receivable resulting from increased prices of crude oil and refined oil products. |
Prepayments | 12,162 | 9,267 | 2,895 | 31.2 | Prepayment for goods increased year-on-year. |
Employee benefits payable | 26,665 | 14,048 | 12,617 | 89.8 | Impact of increase in payable performance-based income. |
Taxes payable | 30,214 | 81,267 | (51,053) | (62.8) | The impact of centralized payment for deferred taxes happened in the fourth quarter of last year. |
4
Items of Consolidated Balance Sheet | As of 30 September 2022 | As of 31 December 2021 | Increase/ (Decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Non-current liabilities due within one year | 69,574 | 28,651 | 40,923 | 142.8 | Increase in long-term loans and debentures payable due within one year. |
Other current liabilities | 103,849 | 31,762 | 72,087 | 227.0 | Increase in low-interest debentures for supplementary of liquidity during the reporting period. |
Treasury shares | 375 | - | 375 | - | Repurchased A shares and H shares in the reporting period. |
Other comprehensive income | 7,587 | (690) | 8,277 | - | The impact on translation of foreign currency statements and changes in effective hedging business. |
Specific reserve | 3,588 | 2,664 | 924 | 34.7 | The impact of changes in balance of safety fund reserve. |
Items of Consolidated Income Statement | Nine-months period ended 30 September 2022 | Nine-months period ended 30 September 2021 | Increase/ (Decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Other income | 5,848 | 1,671 | 4,177 | 250.0 | Increase in VAT refund on imported LNG. |
Investment (loss) /income | (6,011) | 9,520 | (15,531) | - | Decrease in investment income of associates and joint ventures and the impact of profit and loss of derivative financial instruments. |
Gains/ (loss) from changes in fair value | 1,765 | (1,112) | 2,877 | - | Impact of floating profit and loss of derivative financial instruments. |
Impairment losses | (2,376) | (1,036) | (1,340) | 129.3 | Allowance for diminution in value of inventories increased. |
Items of Consolidated Cash Flow Statement | Nine-months period ended 30 September 2022 | Nine-months period ended 30 September 2021 | Increase/(Decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Net cash flow from operating activities | 59,244 | 116,744 | (57,500) | (49.3) | Increase in working capital occupation due to the higher prices of crude oil and refined oil product. |
Refunds of taxes and levies | 8,401 | 934 | 7,467 | 799.5 | Increase in VAT refund on imported LNG. |
Other cash received relating to operating activities | 211,117 | 109,232 | 101,885 | 93.3 | Increase in derivative financial instruments margins received. |
Cash paid for goods and services | (2,180,888) | (1,650,303) | (530,585) | 32.2 | Increase in procurement cost of crude oil and other feedstocks. |
5
Items of Consolidated Cash Flow Statement | Nine-months period ended 30 September 2022 | Nine-months period ended 30 September 2021 | Increase/(Decrease) | Main reasons for changes | |
Amount | Percentage | ||||
RMB million | RMB million | RMB million | (%) | ||
Other cash paid relating to operating activities | (247,067) | (122,068) | (124,999) | 102.4 | Increase in payment of derivative financial instruments margins. |
Cash received from disposal of investment | 517 | 6,614 | (6,097) | (92.2) | Decrease in structured deposits received year on year. |
Cash received from returns on investment | 8,718 | 6,461 | 2,257 | 34.9 | Increase in dividend received from associates and joint ventures. |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 218 | 919 | (701) | (76.3) | Decrease of gain on disposal of fixed assets. |
Net cash received from disposal of subsidiaries and other business entities | 1 | 4,764 | (4,763) | (100.0) | Payment of pipeline transaction received in the same period of 2021 and no such item in reporting period. |
Other cash received relating to investing activities | 52,283 | 26,431 | 25,852 | 97.8 | Increase in amount received of time deposits with maturities over three months. |
Cash paid for acquisition of investments | (6,350) | (18,595) | 12,245 | (65.9) | Decrease in entrusted loan year on year. |
Net cash paid for the acquisition of subsidiaries and other business entities | (7,641) | (1,114) | (6,527) | 585.9 | Cash paid for the prior year-end asset acquisition. |
Other cash paid relating to investing activities | (23,172) | (36,949) | 13,777 | (37.3) | Decrease in time deposits with maturities over three months year on year. |
Cash received from borrowings | 432,081 | 298,393 | 133,688 | 44.8 | Increase in loans. |
Cash repayments of borrowings | (332,437) | (252,759) | (79,678) | 31.5 | Increase in matured debts year on year. |
Cash paid for dividends, profits distribution or interest | (65,759) | (44,820) | (20,939) | 46.7 | The payment of dividends for the period increased year on year. |
2. Shareholders information
Total number of shareholders and top ten shareholders at the end of the reporting period
Total number of shareholders at the end of the reporting period | Total number of shareholders was 479,394, including 473,819 holders of domestic A shares and 5,575 holders of overseas H shares. |
Top ten shareholders |
6
Name of shareholder | Total number of shares held | Percentage (%) | Number of shares subject to pledge or lock-ups | Nature of shareholder |
China Petrochemical Corporation | 82,709,227,393 | 68.31 | 0 | State-owned share |
HKSCC (Nominees) Limited | 25,371,033,298 | 20.96 | Unknown | H share |
中国证券金融股份有限公司 | 2,325,374,407 | 1.92 | 0 | A share |
香港中央结算有限公司 | 1,203,674,433 | 0.99 | 0 | A share |
中国人寿保险股份有限公司-传统-普通保险产品-005L-CT001 沪 | 394,236,547 | 0.33 | 0 | A share |
中央汇金资产管理有限责任公司 | 315,223,600 | 0.26 | 0 | A share |
国信证券股份有限公司 | 235,021,324 | 0.19 | 0 | A share |
中国工商银行-上证 50 交易型开放式指数 | 124,680,276 | 0.10 | 0 | A share |
全国社保基金一一八组合 | 83,162,900 | 0.07 | 0 | A share |
招商银行股份有限公司-上证红利交易型开放式指数证券投资基金 | 77,458,009 | 0.06 | 0 | A share |
Note: Sinopec Century Bright Capital Investment Limited, overseas wholly-owned subsidiary of China Petrochemical Corporation, holds 767,916,000 H shares, accounting for 0.6343% of the total issued share capital of Sinopec Corp. Those shareholdings were included in the total number of the shares held by HKSCC Nominees Limited.
Statement on the connected relationship or acting in concert among the aforementioned shareholders: Sinopec Corp. is not aware of any connected relationship or acting in concert among or between the above-mentioned shareholders.
3. Review of operating results
In the first three quarters of 2022, the world economic growth slowed down. China effectively coordinated pandemic prevention and control with economic and social development and the overall economic operations recovered in an upward trend in the third quarter with the GDP growth of 3.9% year-on-year. The international crude oil prices rose sharply and fluctuated in the first half and dropped in the third quarter. The average spot price of Platts Brent was USD102.5 per barrel, up by 50.8% year-on-year. Domestic demand for natural gas kept stable. Based on the statistics of the Company, domestic demand for refined oil products shrank for the first half of the year and recovered with an increase of 1.5% year-on-year in the third quarter. The demand for major chemical products was weak due to the high crude oil price and the pandemic, with the ethylene equivalent consumption decreased by 1.0% year-on-year.
Confronted with severe and complex environment of production and operation, the Company gave full play to its integration advantages, actively responded to market changes, carried out in-depth optimization of the whole industrial chain, enhanced production and marketing coordination and achieved high-quality results. In accordance with CASs, net profit attributable to equity shareholders of the Company was RMB 56.660 billion, down by 5.6% year-on-year. In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB 57.284 billion, down by 5.9% year-on-year.
Exploration and Production: The Company seized the favourable opportunity of high oil prices,
7
intensified efforts in exploration and development, consolidated the foundation of resources, improved operational performance, and realised growth in production and profit. In terms of exploration, we strengthened risk exploration and trap pre-exploration in new regions and areas, and achieved a number of oil and gas discoveries, including breakthroughs in Shunbei oil and gas fields and Tarim Basin, shale oilfield in Bohai Bay basin and Subei basin, deep exploration of natural gas in Sichuan basin. In terms of development, we accelerated capacity building of major oilfields, such as Shunbei, Tahe and offshore blocks, strengthened efficiency adjustment and fine-tuned development of mature oil fields. We also actively promoted the capacity building of key natural gas blocks in Shunbei and Sichuan basin, and enhanced optimization and profitability improvement of the whole natural gas business chain. In the first three quarters of 2022, the Company’s production of oil and gas reached 363.18 million barrels of oil equivalent, up by 2.3% year-on-year, with crude oil production reaching 210.82 million barrels, up by 1.0% year-on-year and natural gas production reaching 913.8 billion cubic feet, up by 4.1% year-on-year. The exploration and production segment realised earnings before interest and tax (EBIT) of RMB 46.245 billion in the first three quarters.
Exploration and Production | Unit | Nine-month period ended 30 September | Changes | |
2022 | 2021 | (%) | ||
Oil and gas production | million boe | 363.18 | 355.01 | 2.3 |
Crude oil production | million barrels | 210.82 | 208.65 | 1.0 |
China | million barrels | 188.05 | 186.59 | 0.8 |
Overseas | million barrels | 22.77 | 22.06 | 3.2 |
Natural gas production | billion cubic feet | 913.81 | 877.85 | 4.1 |
Realised crude oil price | USD/barrel | 94.24 | 60.94 | 54.6 |
Conversion: For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil, 1 tonne = 7.05 barrels. For production of natural gas, 1 cubic meter = 35.31 cubic feet.
Refining: The Company actively responded to challenges brought by high crude oil price and the pandemic, insisted on optimization and integration of production and marketing, leveraged the adaptability of facilities and maintained stable operation. We flexibly adjusted the utilization rate, product slate and export pace closely in line with market and reduced the inventory scale. We optimized the crude oil procurement and resources allocation to reduce procurement costs. We continuously promoted to increase the yield of chemical feedstock and refining specialities, accelerated construction of advanced capacity, promoted structural adjustment projects in an orderly manner and expedited the hydrogen supply projects. In the first three quarters of 2022, the Company processed 180 million tonnes crude oil, down by 5.6% year-on-year, yielding 103 million tonnes of refined oil products, among which diesel output increased by 4.7% year-on-year. The refining segment realised EBIT of RMB 20.645 billion in the first three quarters.
Refining | Unit | Nine-month period ended 30 September | Changes | |
2022 | 2021 | (%) | ||
Refinery throughput | million tonnes | 180.07 | 190.73 | (5.6) |
Gasoline, diesel and kerosene production | million tonnes | 103.07 | 108.60 | (5.1) |
8
Refining | Unit | Nine-month period ended 30 September | Changes | |
2022 | 2021 | (%) | ||
Gasoline | million tonnes | 44.98 | 49.07 | (8.3) |
Diesel | million tonnes | 44.92 | 42.92 | 4.7 |
Kerosene | million tonnes | 13.17 | 16.60 | (20.7) |
Light chemical feedstock production | million tonnes | 32.21 | 33.71 | (4.4) |
Light product yield | % | 73.95 | 73.72 | 0.23 percentage points |
Refining yield | % | 95.11 | 94.71 | 0.40 percentage points |
Note : Including 100% production of domestic joint ventures.
Marketing and Distribution: Facing the unfavourable situation of sporadic COVID-19 outbreaks in different regions, the Company strengthened the integration of production and marketing, scientifically adjusted business strategy and optimized the resources allocation. Especially, we seized the favorable opportunity of the gradual recovery of demand and continuous standardization of market orderliness in the third quarter and spared no effort to expand sales and increase profitability. We actively expanded low- sulphur bunker fuel market and further consolidated our market position. We expanded business scope, promoted branding building and improved the quality and profitability of non-fuel business. Efforts were made to accelerate sales network development, digitisation and transformation to an integrated energy service provider of petrol, gas, hydrogen, power and services. In the first three quarters, domestic sales volume of refined oil products was 121.99 million tonnes, among which the sales volume for the third quarter was 43.53 million tonnes, up by 16.4% quarter-on-quarter. The marketing and distribution segment realised EBIT of RMB 23.154 billion in the first three quarters.
Marketing and Distribution | Unit | Nine-month period ended 30 September | Changes | |
2022 | 2021 | (%) | ||
Total sales volume of refined oilproducts | million tonnes | 151.60 | 166.59 | (9.0) |
Total domestic sales volume ofrefined oil products | million tonnes | 121.99 | 127.88 | (4.6) |
Retail | million tonnes | 79.09 | 83.70 | (5.5) |
Direct sales & Distribution | million tonnes | 42.91 | 44.18 | (2.9) |
Annualised average throughputper station | tonnes/station | 3,430 | 3,633 | (5.6) |
Note: The total sales volume of refined oil products includes the amount of refined oil marketing and trading sales volume.
Chemicals: Facing difficulty situation of high cost, high inventory and low margin in domestic chemical industrial chain, the Company closely responded to market change, dynamically optimized the structure of feedstocks and products, optimized utilization rate according to profitability, maintained high utilization rate in profitable facilities, increased the production of EVA and BR and increased production and profits in coal chemical business. We comprehensively promoted the construction of capacity in
9
Zhenhai, Tianjin Nangang, Hainan and Jiujiang. In the first three quarters, ethylene production reached 10 million tonnes, up by 2.6% year-on-year. We made full efforts to ensure sufficient supply to our strategic customers, actively increased export, and vigorously expanded high-end markets. In the first three quarters, the total sales volume of chemical products was 60.40 million tonnes, with a slight decrease year-on-year. Due to the sharp decline of gross margin of chemical products, the chemicals segment realised EBIT of RMB -1.061 billion in the first three quarters.
Chemicals | Unit | Nine-month period ended 30 September | Changes | |
2022 | 2021 | (%) | ||
Ethylene | thousand tonnes | 10,002 | 9,752 | 2.6 |
Synthetic resin | thousand tonnes | 13,790 | 14,002 | (1.5) |
Synthetic rubber | thousand tonnes | 936 | 890 | 5.2 |
Monomers and polymers for synthetic fibre | thousand tonnes | 6,705 | 6,819 | (1.7) |
Synthetic fibre | thousand tonnes | 834 | 1,031 | (19.1) |
Note : Including 100% production of domestic joint ventures.
Capital expenditures:
Capital expenditures in the first three quarters was RMB 104.0 billion, of which RMB 51.6 billion was spent in E&P segment, mainly for the crude oil capacity building in Shunbei and Tahe, natural gas capacity building in Chuanxi and Dongsheng, and the construction of storage and transportation facilities such as the relocation of Dongying crude oil depot and Longkou LNG projects; RMB 13.6 billion was spent in refining segment, mainly for Anqing and Yangzi refining upgrading projects and phase two of Zhenhai refining and chemical projects; RMB 6.5 billion was spent in marketing and distribution segment, mainly for the upgrading of existing stations and construction of integrated energy stations covering gasoline, gas, hydrogen, power and service, as well as logistics facilities; RMB 29.5 billion was spent in chemicals segment, mainly for Hainan and Tianjin Nangang ethylene projects, Jiujiang aromatics project, Zhenhai refining and chemical project phase II and Yizheng PTA project; RMB 2.8 billion was spent in corporate and others, mainly for construction of science and technology research and IT projects.
4. Other significant events
The progress of share repurchase
On 18 May 2022, the Annual General Meeting for 2021, the First A Shareholders Class Meeting for 2022 and the First H Shareholders Class Meeting for 2022 of Sinopec Corp. considered and approved the Resolution to Grant to the Board a Mandate to Buy Back Domestic Shares and/or Overseas-listed Foreign Shares of Sinopec Corp., and authorized the Board (or the director authorised by the Board) to buy back A Shares or H Shares not exceeding 10% of the number of A Shares or H Shares of the Company in issue.
On 26 August 2022, the twelfth meeting of the eighth session of the Board considered and approved the Plan on Repurchasing the Company's Shares by Centralized Bidding Transactions. For details, please refer to the Company's announcements disclosed on the website of the Shanghai Stock Exchange on 29 August 2022 and 20 September 2022.
On 21 September 2022, the Company implemented the repurchase of A shares and H shares. As of
10
30 September 2022, the Company has repurchased 48 million A shares, accounting for 0.04% of the Company's total issued share capital on 30 September 2022, and the total amount paid was RMB 203,905,495.60 (exclusive of transaction fees). For details, please refer to the Progress Announcement on the Repurchase of A Shares by Centralized Bidding Transactions disclosed by the Company on the website of the Shanghai Stock Exchange on 10 October 2022; the Company has repurchased 54.414 million H Shares, accounting for approximately 0.04% of the Company's total issued share capital on 30 September 2022, and the total amount paid was HK$188,781,540.60 (exclusive of transaction fees).
This quarterly results announcement is published in both Chinese and English languages. In the event of any inconsistency between the two versions, the Chinese version shall prevail.
By Order of the Board | |
Ma Yongsheng | |
Chairman | |
28 October 2022 |
11
5 Appendix
5.1 Quarterly financial statements prepared under China Accounting Standards for Business Enterprises (CASs)
Consolidated Balance Sheet
As at 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | At 30 September 2022 | At 31 December 2021 |
Current assets: | ||
Cash at bank and on hand | 216,728 | 221,989 |
Financial assets held for trading | 1,013 | - |
Derivative financial assets | 43,768 | 18,371 |
Accounts receivable | 65,796 | 34,861 |
Receivables financing | 5,660 | 5,939 |
Prepayments | 12,162 | 9,267 |
Other receivables | 30,086 | 35,664 |
Inventories | 282,719 | 207,433 |
Other current assets | 19,463 | 24,500 |
Total current assets | 677,395 | 558,024 |
Non-current assets: | ||
Long-term equity investments | 220,888 | 209,179 |
Other equity instrument investments | 785 | 767 |
Fixed assets | 602,977 | 598,932 |
Construction in progress | 179,990 | 155,939 |
Right-of-use assets | 180,769 | 184,974 |
Intangible assets | 119,856 | 119,210 |
Goodwill | 8,779 | 8,594 |
Long-term deferred expenses | 10,934 | 10,007 |
Deferred tax assets | 21,478 | 19,389 |
Other non-current assets | 26,668 | 24,240 |
Total non-current assets | 1,373,124 | 1,331,231 |
Total assets | 2,050,519 | 1,889,255 |
12
Consolidated Balance Sheet (Continued)
Current liabilities: | ||
Short-term loans | 24,610 | 27,366 |
Derivative financial liabilities | 16,454 | 3,223 |
Bills payable | 10,096 | 11,721 |
Accounts payable | 233,680 | 203,919 |
Contract liabilities | 145,290 | 124,622 |
Employee benefits payable | 26,665 | 14,048 |
Taxes payable | 30,214 | 81,267 |
Other payables | 124,461 | 114,701 |
Non-current liabilities due within one year | 69,574 | 28,651 |
Other current liabilities | 103,849 | 31,762 |
Total current liabilities | 784,893 | 641,280 |
Non-current liabilities: | ||
Long-term loans | 81,873 | 49,341 |
Debentures payable | 13,062 | 42,649 |
Lease liabilities | 168,718 | 170,233 |
Provisions | 46,475 | 43,525 |
Deferred tax liabilities | 9,767 | 7,910 |
Other non-current liabilities | 20,194 | 18,276 |
Total non-current liabilities | 340,089 | 331,934 |
Total liabilities | 1,124,982 | 973,214 |
Shareholders’ equity: | ||
Share capital | 121,071 | 121,071 |
Capital reserve | 118,118 | 120,188 |
Less: Treasury shares | 375 | - |
Other comprehensive income | 7,587 | (690) |
Specific reserve | 3,588 | 2,664 |
Surplus reserves | 213,224 | 213,224 |
Retained earnings | 318,060 | 318,645 |
Total equity attributable to shareholders of the Company | 781,273 | 775,102 |
Minority interests | 144,264 | 140,939 |
Total shareholders’ equity | 925,537 | 916,041 |
Total liabilities and shareholders’ equity | 2,050,519 | 1,889,255 |
Ma Yongsheng | Yu Baocai | Shou Donghua |
Chairman | President | Chief Financial Officer |
(Legal representative) |
13
Balance Sheet
As at 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | At 30 September 2022 | At 31 December 2021 |
Current assets: | ||
Cash at bank and on hand | 103,962 | 110,691 |
Financial assets held for trading | 2 | - |
Derivative financial assets | 15,368 | 4,503 |
Accounts receivable | 28,510 | 21,146 |
Receivables financing | 1,684 | 227 |
Prepayments | 4,949 | 4,540 |
Other receivables | 38,008 | 46,929 |
Inventories | 82,074 | 63,661 |
Other current assets | 18,573 | 23,408 |
Total current assets | 293,130 | 275,105 |
Non-current assets: | ||
Long-term equity investments | 376,299 | 360,847 |
Other equity instrument investments | 201 | 201 |
Fixed assets | 278,302 | 284,622 |
Construction in progress | 78,198 | 66,146 |
Right-of-use assets | 92,595 | 105,712 |
Intangible assets | 7,782 | 9,334 |
Long-term deferred expenses | 2,891 | 2,875 |
Deferred tax assets | 7,490 | 8,715 |
Other non-current assets | 42,113 | 34,227 |
Total non-current assets | 885,871 | 872,679 |
Total assets | 1,179,001 | 1,147,784 |
Current liabilities: | ||
Short-term loans | 1,351 | 16,550 |
Derivative financial liabilities | 12,269 | 1,121 |
Bills payable | 1,440 | 6,058 |
Accounts payable | 86,748 | 85,307 |
Contract liabilities | 9,491 | 7,505 |
Employee benefits payable | 17,143 | 8,398 |
Taxes payable | 17,233 | 46,333 |
Other payables | 218,198 | 211,179 |
Non-current liabilities due within one year | 40,916 | 16,737 |
Other current liabilities | 75,220 | 13,702 |
Total current liabilities | 480,009 | 412,890 |
14
Balance Sheet (Continued)
Non-current liabilities: | ||
Long-term loans | 52,390 | 34,258 |
Debentures payable | 9,536 | 31,522 |
Lease liabilities | 92,452 | 104,426 |
Provisions | 37,679 | 35,271 |
Other non-current liabilities | 2,764 | 3,103 |
Total non-current liabilities | 194,821 | 208,580 |
Total liabilities | 674,830 | 621,470 |
Shareholders’ equity: | ||
Share capital | 121,071 | 121,071 |
Capital reserve | 66,469 | 67,897 |
Less: Treasury shares | 375 | - |
Other comprehensive income | 4,132 | 6,024 |
Specific reserve | 1,997 | 1,658 |
Surplus reserves | 213,224 | 213,224 |
Retained earnings | 97,653 | 116,440 |
Total shareholders’ equity | 504,171 | 526,314 |
Total liabilities and shareholders’ equity | 1,179,001 | 1,147,784 |
Ma Yongsheng | Yu Baocai | Shou Donghua |
Chairman | President | Chief Financial Officer |
(Legal representative) |
15
Consolidated Income Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | The third quarter of 2022 (July- September) | The third quarter of 2021 (July- September) | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
I. Operating income | 841,196 | 740,918 | 2,453,322 | 2,001,691 |
II. Total Operating costs | 837,227 | 714,314 | 2,374,159 | 1,916,509 |
Including: Operating costs | 735,800 | 603,238 | 2,066,625 | 1,601,524 |
Taxes and surcharges | 65,817 | 65,952 | 200,226 | 186,852 |
Selling and distribution expenses | 14,654 | 16,616 | 42,784 | 48,347 |
General and administrative expenses | 13,439 | 20,038 | 39,622 | 56,208 |
Research and development expenses | 2,778 | 2,951 | 9,088 | 8,311 |
Financial expenses | 2,604 | 2,352 | 7,941 | 7,254 |
Including: Interest expenses | 4,363 | 3,896 | 12,487 | 11,556 |
Interest income | 1,581 | 1,458 | 4,593 | 4,121 |
Exploration expenses, including dry holes | 2,135 | 3,167 | 7,873 | 8,013 |
Add: Other income | 3,727 | 427 | 5,848 | 1,671 |
Investment income | 4,296 | 4,630 | (6,011) | 9,520 |
Including: Income from investment in associates and joint ventures | 3,950 | 5,903 | 11,277 | 17,036 |
Gains from changes in fair value | 3,323 | (1,228) | 1,765 | (1,112) |
Credit impairment reversals/ (losses) | 67 | (195) | 139 | (140) |
Impairment losses | (920) | (110) | (2,376) | (1,036) |
Asset disposal gains | 114 | 152 | 249 | 433 |
III. Operating profit | 14,576 | 30,280 | 78,777 | 94,518 |
Add: Non-operating income | 822 | 500 | 1,677 | 1,196 |
Less: Non-operating expenses | 743 | 670 | 1,822 | 1,751 |
IV. Profit before taxation | 14,655 | 30,110 | 78,632 | 93,963 |
Less: Income tax expense | 1,261 | 5,979 | 15,722 | 21,031 |
V. Net profit | 13,394 | 24,131 | 62,910 | 72,932 |
Including: net (loss) /profit of acquiree before business combination under common control | - | (62) | - | 211 |
Classification by going concern: | ||||
(i) Continuous operating net profit | 13,394 | 24,131 | 62,910 | 72,932 |
(ii) Termination of net profit | - | - | - | - |
16
Consolidated Income Statement (Continued) | ||||
Classification by ownership: | ||||
(i) Equity shareholders of the Company | 13,130 | 20,603 | 56,660 | 60,029 |
(ii) Minority interests | 264 | 3,528 | 6,250 | 12,903 |
VI. Other comprehensive income | 1,628 | 3,355 | 18,335 | 11,463 |
Items that may not be reclassified subsequently to profit or loss: | (2) | 1 | (19) | 9 |
Changes in fair value of other equity instrument investments | (2) | 1 | (19) | 9 |
Items that may be reclassified subsequently to profit or loss: | 1,630 | 3,354 | 18,354 | 11,454 |
Other comprehensive income that can be converted into profit or loss under the equity method | (1,617) | 87 | 1,780 | 208 |
Cost of hedging reserve | 506 | (20) | (338) | (60) |
Cash flow hedges | (2,483) | 3,066 | 7,775 | 11,706 |
Foreign currency translation differences | 5,224 | 221 | 9,137 | (400) |
VII. Total comprehensive income | 15,022 | 27,486 | 81,245 | 84,395 |
Equity shareholders of the Company | 13,807 | 24,032 | 73,370 | 71,442 |
Minority interests | 1,215 | 3,454 | 7,875 | 12,953 |
VIII. Earnings per share | ||||
(i) Basic earnings per share (RMB/Share) | 0.108 | 0.170 | 0.468 | 0.496 |
(ii) Diluted earnings per share (RMB/Share) | 0.108 | 0.170 | 0.468 | 0.496 |
Ma Yongsheng | Yu Baocai | Shou Donghua |
Chairman | President | Chief Financial Officer |
(Legal representative) |
17
Income Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | The third quarter of 2022 (July- September) | The third quarter of 2021 (July- September) | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
I. Operating income | 329,242 | 265,651 | 979,672 | 734,773 |
Less: Operating costs | 271,636 | 203,170 | 792,959 | 566,597 |
Taxes and surcharges | 41,749 | 39,146 | 128,206 | 111,871 |
Selling and distribution expenses | 383 | 884 | 1,598 | 2,750 |
General and administrative expenses | 5,585 | 9,353 | 17,250 | 25,739 |
Research and development expenses | 1,467 | 2,637 | 7,310 | 7,599 |
Financial expenses | 2,731 | 2,845 | 7,726 | 8,227 |
Including: Interest expenses | 3,466 | 2,228 | 10,259 | 6,421 |
Interest income | 878 | 662 | 2,614 | 1,822 |
Exploration expenses, including dry holes | 1,924 | 2,847 | 6,718 | 7,029 |
Add: Other income | 3,209 | 201 | 4,654 | 944 |
Investment income | 6,366 | 12,337 | 23,666 | 22,939 |
Including: Income from investment in associates and joint ventures | 942 | 1,979 | 3,956 | 6,345 |
Gains from changes in fair value | (513) | (243) | (272) | (11) |
Credit impairment reversals | 3 | 6 | 2 | 8 |
Impairment losses | 10 | 1 | (726) | (752) |
Asset disposal gains | 3 | 9 | 124 | 6 |
II. Operating profit | 12,845 | 17,080 | 45,353 | 28,095 |
Add: Non-operating income | 492 | (7) | 673 | 196 |
Less: Non-operating expenses | 358 | 289 | 1,029 | 808 |
III. Profit before taxation | 12,979 | 16,784 | 44,997 | 27,483 |
Less: Income tax expense | 2,093 | 1,381 | 6,608 | 4,194 |
IV. Net profit | 10,886 | 15,403 | 38,389 | 23,289 |
(i) Continuous operating net profit | 10,886 | 15,403 | 38,389 | 23,289 |
(ii) Termination of net profit | - | - | - | - |
18
Income Statement (continued)
V. Other comprehensive income | (13) | 4,444 | 4,743 | 10,398 |
Items that may not be reclassified subsequently to profit or loss: | - | - | (5) | - |
Changes in fair value of other equity instrument investments | - | - | (5) | - |
Items that may be reclassified subsequently to profit or loss: | (13) | 4,444 | 4,748 | 10,398 |
Other comprehensive income that can be converted into profit or loss under the equity method | (14) | 90 | 125 | 108 |
Cash flow hedges | 1 | 4,354 | 4,623 | 10,290 |
VI. Total comprehensive income | 10,873 | 19,847 | 43,132 | 33,687 |
Ma Yongsheng | Yu Baocai | Shou Donghua |
Chairman | President | Chief Financial Officer |
(Legal representative) |
19
Consolidated Cash Flow Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
I. Cash flows from operating activities: | ||
Cash received from sale of goods and rendering of services | 2,627,885 | 2,112,459 |
Refund of taxes and levies | 8,401 | 934 |
Other cash received relating to operating activities | 211,117 | 109,232 |
Sub-total of cash inflows | 2,847,403 | 2,222,625 |
Cash paid for goods and services | (2,180,888) | (1,650,303) |
Cash paid to and for employees | (61,586) | (57,226) |
Payments of taxes and levies | (298,618) | (276,284) |
Other cash paid relating to operating activities | (247,067) | (122,068) |
Sub-total of cash outflows | (2,788,159) | (2,105,881) |
Net cash flow from operating activities | 59,244 | 116,744 |
II. Cash flows from investing activities: | ||
Cash received from disposal of investments | 517 | 6,614 |
Cash received from returns on investments | 8,718 | 6,461 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 218 | 919 |
Net cash received from disposal of subsidiaries and other business entities | 1 | 4,764 |
Other cash received relating to investing activities | 52,283 | 26,431 |
Sub-total of cash inflows | 61,737 | 45,189 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (94,485) | (88,602) |
Cash paid for acquisition of investments | (6,350) | (18,595) |
Cash paid for acquisition of subsidiaries and other business units | (7,641) | (1,114) |
Other cash paid relating to investing activities | (23,172) | (36,949) |
Sub-total of cash outflows | (131,648) | (145,260) |
Net cash flow from investing activities | (69,911) | (100,071) |
III. Cash flows from financing activities: | ||
Cash received from capital contributions | 1,935 | 604 |
Including: Cash received from minority shareholders’ capital contributions to subsidiaries | 1,935 | 604 |
20
Consolidated Cash Flow Statement (Continued)
Cash received from borrowings | 432,081 | 298,393 |
Other cash received relating to financing activities | 1,347 | 115 |
Sub-total of cash inflows | 435,363 | 299,112 |
Cash repayments of borrowings | (332,437) | (252,759) |
Cash paid for dividends, profits distribution or interest | (65,759) | (44,820) |
Including: Subsidiaries’ cash payments for distribution of dividends or profits to minority shareholders | (4,360) | (5,741) |
Other cash paid relating to financing activities | (13,290) | (14,762) |
Sub-total of cash outflows | (411,486) | (312,341) |
Net cash flow from financing activities | 23,877 | (13,229) |
IV. Effects of changes in foreign exchange rate | 4,798 | (177) |
V. Net increase in cash and cash equivalents | 18,008 | 3,267 |
Add: Initial balance of cash and cash equivalents | 108,590 | 87,559 |
VI. Ending balance of cash and cash equivalents | 126,598 | 90,826 |
Ma Yongsheng | Yu Baocai | Shou Donghua |
Chairman | President | Chief Financial Officer |
(Legal representative) |
21
Cash Flow Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
I. Cash flows from operating activities: | ||
Cash received from sale of goods and rendering of services | 1,100,876 | 805,374 |
Refund of taxes and levies | 5,731 | 602 |
Other cash received relating to operating activities | 13,893 | 8,306 |
Sub-total of cash inflows | 1,120,500 | 814,282 |
Cash paid for goods and services | (837,202) | (582,164) |
Cash paid to and for employees | (31,695) | (29,678) |
Payments of taxes and levies | (175,552) | (154,927) |
Other cash paid relating to operating activities | (53,355) | (14,208) |
Sub-total of cash outflows | (1,097,804) | (780,977) |
Net cash flow from operating activities | 22,696 | 33,305 |
II. Cash flows from investing activities: | ||
Cash received from disposal of investments | 5,038 | 16,642 |
Cash received from returns on investments | 23,123 | 17,791 |
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 45 | 56 |
Other cash received relating to investing activities | 146,656 | 93,230 |
Sub-total of cash inflows | 174,862 | 127,719 |
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets | (42,868) | (38,050) |
Cash paid for acquisition of investments | (20,452) | (37,610) |
Cash paid for acquisition of subsidiaries and other business units | (4,221) | (964) |
Other cash paid relating to investing activities | (136,949) | (93,843) |
Sub-total of cash outflows | (204,490) | (170,467) |
Net cash flow from investing activities | (29,628) | (42,748) |
III. Cash flows from financing activities: | ||
Cash received from borrowings | 187,385 | 151,145 |
Other cash received relating to financing activities | 294,614 | 220,822 |
Sub-total of cash inflows | 481,999 | 371,967 |
Cash repayments of borrowings | (121,305) | (121,860) |
Cash paid for dividends or interest | (63,082) | (41,086) |
Other cash paid relating to financing activities | (288,135) | (206,415) |
Sub-total of cash outflows | (472,522) | (369,361) |
Net cash flow from financing activities | 9,477 | 2,606 |
22
Cash Flow Statement (Continued)
IV. Effects of changes in foreign exchange rate | (8) | - |
V. Net increase/ (decrease) in cash and cash equivalents | 2,537 | (6,837) |
Add:Initial balance of cash and cash equivalents | 34,575 | 28,081 |
VI. Ending balance of cash and cash equivalents | 37,112 | 21,244 |
Ma Yongsheng | Yu Baocai | Shou Donghua |
Chairman | President | Chief Financial Officer |
(Legal representative) |
23
Segment Reporting
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Income from principal operations | ||
Exploration and production | ||
External sales | 138,870 | 104,139 |
Inter–segment sales | 92,164 | 61,683 |
Subtotal | 231,034 | 165,822 |
Refining | ||
External sales | 148,241 | 122,238 |
Inter–segment sales | 1,028,879 | 862,823 |
Subtotal | 1,177,120 | 985,061 |
Marketing and distribution | ||
External sales | 1,227,731 | 977,324 |
Inter–segment sales | 9,886 | 4,745 |
Subtotal | 1,237,617 | 982,069 |
Chemicals | ||
External sales | 342,259 | 306,570 |
Inter–segment sales | 60,194 | 48,973 |
Subtotal | 402,453 | 355,543 |
Corporate and others | ||
External sales | 550,609 | 446,160 |
Inter–segment sales | 775,647 | 527,164 |
Subtotal | 1,326,256 | 973,324 |
Elimination of inter–segment sales | (1,966,770) | (1,505,388) |
Consolidated income from principal operations | 2,407,710 | 1,956,431 |
Income from other operations | ||
Exploration and production | 4,465 | 5,011 |
Refining | 2,874 | 3,723 |
Marketing and distribution | 28,952 | 27,216 |
Chemicals | 7,496 | 7,754 |
Corporate and others | 1,825 | 1,556 |
Consolidated income from other operations | 45,612 | 45,260 |
Consolidated operating income | 2,453,322 | 2,001,691 |
24
Segment Reporting (Continued)
Operating profit | ||
By segment | ||
Exploration and production | 39,165 | 7,673 |
Refining | 20,023 | 53,310 |
Marketing and distribution | 21,759 | 22,416 |
Chemicals | (4,502) | 15,087 |
Corporate and others | 15,632 | 4,609 |
Elimination | (7,210) | (11,835) |
Total segment operating profit | 84,867 | 91,260 |
Investment income | ||
Exploration and production | 2,848 | 2,698 |
Refining | (74) | 785 |
Marketing and distribution | 494 | 1,626 |
Chemicals | 2,986 | 7,500 |
Corporate and others | (12,265) | (3,089) |
Total segment investment (loss) /income | (6,011) | 9,520 |
Financial expenses | (7,941) | (7,254) |
Gains/ (losses) from changes in fair value | 1,765 | (1,112) |
Asset disposal gains | 249 | 433 |
Other income | 5,848 | 1,671 |
Operating profit | 78,777 | 94,518 |
Add: Non-operating income | 1,677 | 1,196 |
Less: Non-operating expenses | 1,822 | 1,751 |
Profit before taxation | 78,632 | 93,963 |
25
5.2 Quarterly financial statements prepared under International Financial Reporting Standards (IFRS)
Consolidated Income Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Current Amount (July- September) | Amount of the previous period (July- September) | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Revenue | ||||
Revenue from primary business | 825,474 | 724,908 | 2,407,710 | 1,956,431 |
Other operating revenues | 15,722 | 16,010 | 45,612 | 45,260 |
Subtotal | 841,196 | 740,918 | 2,453,322 | 2,001,691 |
Operating expenses | ||||
Purchased crude oil, products and operating supplies and expenses | (700,430) | (576,176) | (1,962,613) | (1,521,731) |
Selling, general and administrative expenses | (13,965) | (13,383) | (40,762) | (39,193) |
Depreciation, depletion and amortisation | (27,911) | (28,282) | (81,549) | (82,748) |
Exploration expenses, including dry holes | (2,135) | (3,167) | (7,873) | (8,013) |
Personnel expenses | (25,264) | (24,937) | (74,487) | (70,132) |
Taxes other than income tax | (65,817) | (65,952) | (200,226) | (186,852) |
Impairment reversals/ (losses) on trade and other receivables | 67 | (195) | 139 | (140) |
Other operating income/ (expense), net | 7,221 | (2,287) | (10,065) | (7,857) |
Total operating expenses | (828,234) | (714,379) | (2,377,436) | (1,916,666) |
Operating profit | 12,962 | 26,539 | 75,886 | 85,025 |
Finance costs | ||||
Interest expense | (4,363) | (3,896) | (12,487) | (11,556) |
Interest income | 1,581 | 1,458 | 4,593 | 4,121 |
Foreign currency exchange gains/ (losses), net | 178 | 86 | (47) | 181 |
Net finance costs | (2,604) | (2,352) | (7,941) | (7,254) |
Investment income | 74 | 79 | 200 | 193 |
Share of profits less losses from associates and joint ventures | 3,950 | 5,903 | 11,277 | 17,036 |
Profit before taxation | 14,382 | 30,169 | 79,422 | 95,000 |
Income tax expense | (1,261) | (5,979) | (15,722) | (21,031) |
Profit for the period | 13,121 | 24,190 | 63,700 | 73,969 |
Attributable to: | ||||
Owners of the Company | 12,833 | 20,665 | 57,284 | 60,892 |
Non-controlling interests | 288 | 3,525 | 6,416 | 13,077 |
Profit for the period | 13,121 | 24,190 | 63,700 | 73,969 |
Earnings per share: | ||||
Basic earnings per share (RMB) | 0.106 | 0.171 | 0.473 | 0.503 |
Diluted earnings per share (RMB) | 0.106 | 0.171 | 0.473 | 0.503 |
26
Consolidated Statement of Comprehensive Income
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Current Amount (July- September) | Amount of the previous period (July-September) | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Profit for the period | 13,121 | 24,190 | 63,700 | 73,969 |
Other comprehensive income: | 1,628 | 3,355 | 18,335 | 11,463 |
Items that may not be reclassified subsequently to profit or loss: | ||||
Equity investments at fair value through other comprehensive income | (2) | 1 | (19) | 9 |
Items that may be reclassified subsequently to profit or loss: | ||||
Share of other comprehensive income of associates and joint ventures | (1,617) | 87 | 1,780 | 208 |
Cash flow hedges | (2,483) | 3,066 | 7,775 | 11,706 |
Cost of hedging reserve | 506 | (20) | (338) | (60) |
Foreign currency translation differences | 5,224 | 221 | 9,137 | (400) |
Total comprehensive income for the period | 14,749 | 27,545 | 82,035 | 85,432 |
Attributable to: | ||||
Shareholders of the Company | 13,510 | 24,091 | 73,994 | 72,302 |
Non-controlling interests | 1,239 | 3,454 | 8,041 | 13,130 |
27
Consolidated Balance Sheet
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | At 30 September 2022 | At 31 December 2021 |
Non-current assets: | ||
Property, plant and equipment, net | 602,881 | 598,925 |
Construction in progress | 179,990 | 155,939 |
Right-of-use assets | 266,013 | 268,408 |
Goodwill | 8,779 | 8,594 |
Interest in associates | 160,240 | 148,729 |
Interest in joint ventures | 60,648 | 60,450 |
Financial assets at fair value through other comprehensive income | 785 | 767 |
Deferred tax assets | 21,478 | 19,389 |
Long-term prepayments and other non-current assets | 72,310 | 70,030 |
Total non-current assets | 1,373,124 | 1,331,231 |
Current assets: | ||
Cash and cash equivalents | 126,598 | 108,590 |
Time deposits with financial institutions | 90,130 | 113,399 |
Financial assets at fair value through profit and loss | 1,013 | - |
Derivatives financial assets | 43,768 | 18,371 |
Trade accounts receivable and bills receivable | 65,796 | 34,861 |
Financial assets at fair value through other comprehensive income | 5,660 | 5,939 |
Inventories | 282,719 | 207,433 |
Prepaid expenses and other current assets | 61,711 | 69,431 |
Total current assets | 677,395 | 558,024 |
Current liabilities: | ||
Short-term debts | 128,556 | 35,252 |
Loans from Sinopec Group Company and fellow subsidiaries | 6,454 | 2,873 |
Lease liabilities | 16,678 | 15,173 |
Derivatives financial liabilities | 16,454 | 3,223 |
Trade accounts payable and bills payable | 243,776 | 215,640 |
Contract liabilities | 145,290 | 124,622 |
Other payables | 225,242 | 239,688 |
Income tax payable | 2,443 | 4,809 |
Total current liabilities | 784,893 | 641,280 |
28
Consolidated Balance Sheet (Continued)
Net current liabilities | 107,498 | 83,256 |
Total assets less current liabilities | 1,265,626 | 1,247,975 |
Non-current liabilities: | ||
Long-term debts | 79,789 | 78,300 |
Loans from Sinopec Group Company and fellow subsidiaries | 15,146 | 13,690 |
Lease liabilities | 168,718 | 170,233 |
Deferred tax liabilities | 9,767 | 7,910 |
Provisions | 46,475 | 43,525 |
Other non-current liabilities | 21,117 | 19,243 |
Total non-current liabilities | 341,012 | 332,901 |
Total net assets | 924,614 | 915,074 |
Equity: | ||
Share capital | 121,071 | 121,071 |
Reserves | 659,323 | 653,111 |
Total equity attributable to shareholders of the Company | 780,394 | 774,182 |
Non-controlling interests | 144,220 | 140,892 |
Total equity | 924,614 | 915,074 |
29
Consolidated Cash Flow Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Net cash generated from operating activities(a) | 59,244 | 116,744 |
Investing activities | ||
Capital expenditure | (82,142) | (78,185) |
Exploratory wells expenditure | (12,343) | (10,417) |
Purchase of investments | (5,341) | (10,363) |
Payment for financial assets at fair value through profit or loss | (1,009) | (8,232) |
Proceeds from settlement of financial assets at fair value through profit or loss | 6 | 4,739 |
Payment for acquisition of subsidiary, net of cash acquired | (7,641) | (1,114) |
Proceeds from disposal of investments | 512 | 6,639 |
Proceeds from disposal of property, plant, equipment and other non- current assets | 218 | 919 |
Increase in time deposits with maturities over three months | (22,071) | (32,711) |
Decrease in time deposits with maturities over three months | 47,491 | 22,698 |
Interest received | 3,489 | 2,407 |
Investment and dividend income received | 8,718 | 6,461 |
Proceeds from/ (payments of) other investing activities | 202 | (2,912) |
Net cash used in investing activities | (69,911) | (100,071) |
Financing activities | ||
Proceeds from bank and other loans | 432,081 | 298,393 |
Repayments of bank and other loans | (332,437) | (252,759) |
Contributions to subsidiaries from non-controlling interests | 1,935 | 604 |
Dividends paid by the Company | (56,903) | (35,111) |
Distributions by subsidiaries to non-controlling interests | (4,360) | (5,741) |
Interest paid | (4,496) | (3,968) |
Payments made to acquire non-controlling interests | - | (1,410) |
Repayments of lease liabilities | (10,877) | (12,778) |
Proceeds from other financing activities | 1,347 | 115 |
Repayments of other financing activities | (2,413) | (574) |
Net cash generated from/ (used in) financing activities | 23,877 | (13,229) |
Net increase in cash and cash equivalents | 13,210 | 3,444 |
Cash and cash equivalents at 1 January | 108,590 | 87,559 |
Effect of foreign currency exchange rate changes | 4,798 | (177) |
Cash and cash equivalents at 30 September | 126,598 | 90,826 |
30
Note to consolidated statement of Cash Flows
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
(a) Reconciliation of profit before taxation to net cash generated from operating activities
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Operating activities | ||
Profit before taxation | 79,422 | 95,000 |
Adjustments for: | ||
Depreciation, depletion and amortisation | 81,549 | 82,748 |
Dry hole costs written off | 5,556 | 5,427 |
Share of profits less losses from associates and joint ventures | (11,277) | (17,036) |
Investment income | (200) | (193) |
Interest income | (4,593) | (4,121) |
Interest expense | 12,487 | 11,556 |
(Gain) /loss on foreign currency exchange rate changes and derivative financial instruments | (451) | 1,203 |
Loss on disposal of property, plant, equipment and other non-current assets, net | 205 | 125 |
Impairment losses on assets | 2,376 | 1,036 |
Impairment (reversals) /losses on trade and other receivables | (139) | 140 |
Operating profit before change of operating capital | 164,935 | 175,885 |
Accounts receivable and other current assets | (26,933) | (62,740) |
Inventories | (77,664) | (46,565) |
Accounts payable and other current liabilities | 13,041 | 70,880 |
Subtotal | 73,379 | 137,460 |
Income tax paid | (14,135) | (20,716) |
Net cash generated from operating activities | 59,244 | 116,744 |
31
Segment Reporting
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Revenue from primary business | ||
Exploration and production | ||
External sales | 138,870 | 104,139 |
Inter-segment sales | 92,164 | 61,683 |
Subtotal | 231,034 | 165,822 |
Refining | ||
External sales | 148,241 | 122,238 |
Inter-segment sales | 1,028,879 | 862,823 |
Subtotal | 1,177,120 | 985,061 |
Marketing and distribution | ||
External sales | 1,227,731 | 977,324 |
Inter-segment sales | 9,886 | 4,745 |
Subtotal | 1,237,617 | 982,069 |
Chemicals | ||
External sales | 342,259 | 306,570 |
Inter-segment sales | 60,194 | 48,973 |
Subtotal | 402,453 | 355,543 |
Corporate and others | ||
External sales | 550,609 | 446,160 |
Inter-segment sales | 775,647 | 527,164 |
Subtotal | 1,326,256 | 973,324 |
Elimination of inter-segment sales | (1,966,770) | (1,505,388) |
Revenue from primary business | 2,407,710 | 1,956,431 |
Other operating revenues | ||
Exploration and production | 4,465 | 5,011 |
Refining | 2,874 | 3,723 |
Marketing and distribution | 28,952 | 27,216 |
Chemicals | 7,496 | 7,754 |
Corporate and others | 1,825 | 1,556 |
Other operating revenues | 45,612 | 45,260 |
Revenue | 2,453,322 | 2,001,691 |
32
Segment Reporting (Continued)
Result | ||
Operating profit/ (loss) | ||
By segment | ||
Exploration and production | 43,591 | 8,708 |
Refining | 20,849 | 53,567 |
Marketing and distribution | 21,120 | 21,628 |
Chemicals | (4,037) | 15,757 |
Corporate and others | 1,573 | (2,800) |
Elimination | (7,210) | (11,835) |
Total segment operating profit | 75,886 | 85,025 |
Share of profits/ (losses) from associates and joint ventures | ||
Exploration and production | 2,654 | 2,134 |
Refining | (245) | 728 |
Marketing and distribution | 1,994 | 2,678 |
Chemicals | 3,131 | 7,556 |
Corporate and others | 3,743 | 3,940 |
Aggregate share of profits from associates and joint ventures | 11,277 | 17,036 |
Investment income | ||
Exploration and production | - | 62 |
Refining | 41 | (1) |
Marketing and distribution | 40 | 10 |
Chemicals | (155) | (56) |
Corporate and others | 274 | 178 |
Aggregate investment income | 200 | 193 |
Net finance costs | (7,941) | (7,254) |
Profit before taxation | 79,422 | 95,000 |
33
5.3 Differences between consolidated financial statements prepared in accordance with the accounting policies complying with the accounting policies complying with CASs and IFRS (Unaudited)
Other than the differences in the classifications of certain financial statements captions and the accounting for the items described below, there are no material differences between the Group’s consolidated financial statements prepared in accordance with the accounting policies complying with CASs and IFRS. The reconciliation presented below is included as supplemental information, is not required as part of the basic financial statements and does not include differences related to classification, presentation or disclosures. Such information has not been subject to independent audit or review. The major differences are:
(i) Government grants
Under CASs, grants from the government are credited to capital reserve if required by relevant governmental regulations. Under IFRS, government grants relating to the purchase of fixed assets are recognised as deferred income and are transferred to the income statement over the useful life of these assets.
(ii) Safety production fund
Under CASs, safety production fund should be recognised in profit or loss with a corresponding increase in reserve according to PRC regulations. Such reserve is reduced for expenses incurred for safety production purposes or, when safety production related fixed assets are purchased, is reduced by the purchased cost with a corresponding increase in the accumulated depreciation. Such fixed assets are not depreciated thereafter. Under IFRS, payments are expensed as incurred, or capitalised as fixed assets and depreciated according to applicable depreciation methods.
Effects of major differences between the net profit under CASs and the profit for the period under IFRS are analysed as follows:
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items | Nine-month period ended 30 September 2022 | Nine-month period ended 30 September 2021 |
Net profit under CASs | 62,910 | 72,932 |
Adjustments: | ||
Government grants(i) | 44 | 37 |
Safety production fund(ii) | 1,088 | 1,000 |
Other | (342) | - |
Profit for the period under IFRS | 63,700 | 73,969 |
34
Effects of major differences between the shareholders’ equity under CASs and the total equity under IFRS are analysed as follows:
Units: million Currency: RMB Type: unaudited
Items | As of 30 September 2022 | As of 31 December 2021 |
Shareholders’ equity under CASs | 925,537 | 916,041 |
Adjustments: | ||
Government grants(i) | (923) | (967) |
Total equity under IFRS | 924,614 | 915,074 |
35
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
China Petroleum & Chemical Corporation
By: /s/ Huang Wensheng
Name: Huang Wensheng
Title: Vice President and Secretary to the Board of Directors
Date: November 1, 2022