Exhibit 99.4
(A joint stock limited company incorporated in the People’s Republic of China)
(Stock Code: 00338)
2020 Third Quarterly Report
This announcement is published simultaneously in Shanghai and Hong Kong. This announcement is published pursuant to the Rules Governing Listing of Stocks on Shanghai Stock Exchange in the People’s Republic of China and pursuant to the disclosure obligations under Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
1. Important Message
1.1 | The Board of Directors (the “Board”) and the Supervisory Committee of Sinopec Shanghai Petrochemical Company Limited (the “Company” or “SPC”) as well as its directors, supervisors and senior management warrant the truthfulness, accuracy and completeness of the information contained in the 2020 third quarterly report for the nine months ended 30 September 2020 (the “Reporting Period”), and warrant that there are no false representations or misleading statements contained in or material omissions from this report and severally and jointly accept responsibility pursuant to such information. |
1.2 | All directors attended the third meeting of the tenth session of the Board, and have considered and adopted the 2020 third quarterly report at the meeting. |
1.3 | Mr. Wu Haijun, Chairman of the Company, Mr. Du Jun, overseeing the accounting operations, and Ms. Yang Yating, person-in-charge of Accounting Department (Accounting Chief) and Director of Finance Department warrant the truthfulness, accuracy and completeness of the financial report contained in this third quarterly report. |
1.4 | The financial report of the Company’s 2020 third quarterly report was prepared under the China Accounting Standards for Business Enterprises and was unaudited. |
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2. Basic Information
2.1 | Major Accounting Data |
Unit: RMB’000
As at the end of the Reporting Period | As at the end of the previous year | Increase/decrease at the end of the Reporting Period as compared to the end of the previous year (%) | ||||||||||
Total assets | 44,941,275 | 45,636,128 | -1.52 | |||||||||
Total equity attributable to equity shareholders of the Company | 27,972,038 | 29,885,341 | -6.40 |
From the beginning of the year to the end of the Reporting Period (January to September) | From the beginning of the year to the end of the Reporting Period of last year (January to September) | Increase/decrease as compared to the corresponding period of the previous year (%) | ||||||||||
Net cash flows generated from operating activities | -2,114,789 | -414,628 | 410.04 |
From the beginning of the year to the end of the Reporting Period (January to September) | From the beginning of the year to the end of the Reporting Period of last year (January to September) | Increase/decrease as compared to the corresponding period of the previous year (%) | ||||||||||
Revenue | 54,953,968 | 75,369,599 | -27.09 | |||||||||
Net profit attributable to equity shareholders of the Company | -642,219 | 1,672,132 | -138.41 | |||||||||
Net profit attributable to equity shareholders of the Company excluding non-recurring items | -823,377 | 1,522,252 | -154.09 | |||||||||
Return on net assets (weighted average) (%) | -2.323 | 5.112 | | Decreased by 7.435 percentage points |
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Basic earnings per share (RMB/share) | -0.059 | 0.144 | -140.97 | |||||||||
Diluted earnings per share (RMB/share) | -0.059 | 0.144 | -140.97 |
2
Excluded non-recurring items and amount:
Unit: RMB’000
Item | Amount for the Period (July to September) | Amount from the beginning of the year to the end of the Reporting Period (January to September) | ||||||
Losses on disposal of non-current assets | 87,287 | 89,473 | ||||||
Government grants recognized through profit and loss except for government grants under the State’s unified standards on quota and amount entitlements and closely related to corporate business | 7,833 | 29,328 | ||||||
Other non-operating income and expenses other than those mentioned above | -23,543 | -33,981 | ||||||
Staff reduction fees | -3,876 | -15,430 | ||||||
Investment income from structured deposits | 28,772 | 101,942 | ||||||
Losses on discount of receivables | -2,777 | -15,962 | ||||||
Foreign exchange options and forward foreign exchange contracts (losses)/ earnings | -975 | 56 | ||||||
Derivative financial assets and income from changes in fair value of liabilities | -5,652 | 3,629 | ||||||
Effect on minority interests (after tax) | -395 | -424 | ||||||
Tax effect for the items above | 22,396 | 22,527 | ||||||
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Total | 109,070 | 181,158 | ||||||
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2.2 | Total Number of Shareholders as at the End of the Reporting Period, Top Ten Shareholders and Shareholdings of the Top Ten Shareholders of Shares in Circulation (or Unrestricted Shares) |
Unit: Share
Total number of shareholders |
| 92,829 | ||||||||||||||||||||||
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Shareholdings of the top ten shareholders | ||||||||||||||||||||||||
Name of shareholder (in full) | Number of shares held at the end of the Reporting Period | Percentage of total shareholding (%) | Number of shares with selling restrictions | Number of shares pledged or frozen | Type of shareholder | |||||||||||||||||||
Situation of the shares | Number | |||||||||||||||||||||||
China Petroleum & Chemical Corporation | 5,460,000,000 | 50.44 | 0 | None | 0 | | State-owned legal person | | ||||||||||||||||
HKSCC (Nominees) Limited | 3,454,002,030 | 31.91 | 0 | Unknown | 0 | | Overseas legal person | | ||||||||||||||||
China Securities Finance Corporation Limited | 324,111,018 | 2.99 | 0 | None | 0 | Others | ||||||||||||||||||
Central Huijin Investment Ltd. | 67,655,800 | 0.63 | 0 | None | 0 | Others | ||||||||||||||||||
HKSCC Limited | 57,917,182 | 0.54 | 0 | None | 0 | Others | ||||||||||||||||||
GF Fund – Agricultural Bank of China – GF CSI Financial Asset Management Plan | 45,222,300 | 0.42 | 0 | None | 0 | Others | ||||||||||||||||||
Dacheng Fund – Agricultural Bank of China – Dacheng CSI Financial Asset Management Plan | 43,531,469 | 0.40 | 0 | None | 0 | Others | ||||||||||||||||||
China Asset Fund –Agricultural Bank of China – China Asset CSI Financial Asset Management Plan | 43,083,750 | 0.40 | 0 | None | 0 | Others | ||||||||||||||||||
Bosera Fund – Agricultural Bank of China – Bosera CSI Financial Asset Management Plan | 43,083,700 | 0.40 | 0 | None | 0 | Others | ||||||||||||||||||
E Fund – Agricultural Bank of China – E Fund CSI Financial Asset | 43,083,700 | 0.40 | 0 | None | 0 | Others | ||||||||||||||||||
Management Plan | ||||||||||||||||||||||||
Harvest Fund—Agricultural Bank of China— Harvest CSI Financial Asset Management Plan | 43,083,700 | 0.40 | 0 | None | 0 | Others | ||||||||||||||||||
ZO Asset Management—Agricultural Bank of China- ZO CSI Financial Asset Management Plan | 43,083,700 | 0.40 | 0 | None | 0 | Others | ||||||||||||||||||
Yinhua Fund – Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan | 43,083,700 | 0.40 | 0 | None | 0 | Others | ||||||||||||||||||
China Southern Asset Management – Agricultural Bank of China – China Southern CSI Financial Asset Management Plan | 43,083,700 | 0.40 | 0 | None | 0 | Others | ||||||||||||||||||
ICBC Credit Suisse Fund – Agricultural Bank of China – ICBC Credit Suisse CSI Financial Asset Management Plan | 43,083,700 | 0.40 | 0 | None | 0 | Others |
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Shareholdings of the Top Ten Shareholders with Unlimited Conditions of Sale
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Name of shareholder | Number of Liquidity Shares Holding Unlimited Conditions of Sale | Type and quantity of shares | ||||||||||
Type | Quantity | |||||||||||
China Petroleum & Chemical Corporation | 5,460,000,000 | RMB common stocks | 5,460,000,000 | |||||||||
HKSCC (Nominees) Limited | 3,454,002,030 | | Overseas listed foreign share |
| 3,454,002,030 | |||||||
China Securities Finance Corporation Limited | 324,111,018 | RMB common stocks | 324,111,018 | |||||||||
Central Huijin Investment Ltd. | 67,655,800 | RMB common stocks | 67,655,800 | |||||||||
HKSCC Limited | 57,917,182 | RMB common stocks | 57,917,182 | |||||||||
GF Fund – Agricultural Bank of China – GF CSI Financial Asset Management Plan | 45,222,300 | RMB common stocks | 45,222,300 | |||||||||
Dacheng Fund – Agricultural Bank of China – Dacheng CSI Financial Asset Management Plan | 43,531,469 | RMB common stocks | 43,531,469 | |||||||||
China Asset Fund –Agricultural Bank of China – China Asset CSI Financial Asset Management Plan | 43,083,750 | RMB common stocks | 43,083,750 | |||||||||
Bosera Fund – Agricultural Bank of China – Bosera CSI Financial Asset Management Plan | 43,083,700 | RMB common stocks | 43,083,700 | |||||||||
E Fund – Agricultural Bank of China – E Fund CSI Financial Asset Management Plan | 43,083,700 | RMB common stocks | 43,083,700 | |||||||||
Harvest Fund—Agricultural Bank of China— Harvest CSI Financial Asset Management Plan | 43,083,700 | RMB common stocks | 43,083,700 | |||||||||
ZO Asset Management—Agricultural Bank of China- ZO CSI Financial Asset Management Plan | 43,083,700 | RMB common stocks | 43,083,700 | |||||||||
Yinhua Fund – Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan | 43,083,700 | RMB common stocks | 43,083,700 | |||||||||
China Southern Asset Management – Agricultural Bank of China – China Southern CSI Financial Asset Management Plan | 43,083,700 | RMB common stocks | 43,083,700 | |||||||||
ICBC Credit Suisse Fund – Agricultural Bank of China – ICBC Credit Suisse CSI Financial Asset Management Plan | 43,083,700 | RMB common stocks | 43,083,700 | |||||||||
Explanation of the connected relationship or acting in concert relationship of the above shareholders | | Among the above-mentioned shareholders, China Petroleum & Chemical Corporation, a state-owned legal person, does not have any connected relationship with the other shareholders, and does not constitute an act-in-concert party under the Administration Measures on Acquisition of Listed Companies. Among the above-mentioned shareholders, HKSCC (Nominees) Limited is a nominee and HKSCC Limited is the nominal holder of the Company’s Shanghai- Hong Kong Stock Connect. Apart from the above, the Company is not aware of any other connected relationships among the other shareholders, or whether any other shareholder constitutes an act-in-concert party under the Administrative Measures on Acquisition of Listed Companies. | |
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3. Major Events
3.1 | Description of Substantial Changes in Major Financial Report Items and Financial Indicators of the Company |
Unit: RMB’000
As at 30 September 2020 | As at 31 December 2019 | Increase/ decrease amount | Change (%) | Major reason for change | ||||||||||||||
Monetary Funds | 4,473,987 | 8,958,538 | -4,484,551 | -50.06 | % | Affected by the fluctuation of international oil price, the sales profit of the reporting period decreased year-on- year. The balance of operating items payable such as taxes payable has declined, and the net cash outflow from operating activities increased, resulting in the decline in the balance of monetary funds. | ||||||||||||
Inventories | 5,045,633 | 6,754,434 | -1,708,801 | -25.30 | % | Affected by COVID-19 and the decline in international crude oil prices, the unit cost of Company’s inventory fell. | ||||||||||||
Construction in progress | 1,193,922 | 1,815,549 | -621,627 | -34.24 | % | A total of RMB650 million was transferred to the oil cleaning project for acceptance. | ||||||||||||
Accounts payable | 5,979,599 | 7,664,296 | -1,684,697 | -21.98 | % | Affected by the industry downturn cycle and the epidemic situation, the unit price of raw materials procurement of the Company decreased, and the accounts payable decreased. |
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Unit: RMB’000
Item | For the nine-month period ended 30 September | Increase/ decrease amount | Change (%) | Major reason for change | ||||||||||||||
2020 | 2019 | |||||||||||||||||
Revenue | 54,953,968 | 75,369,599 | -20,415,631 | -27.09 | % | Due to the impact of COVID-19, demand in the downstream market has been reduced, while the sharp drop in international crude oil prices has led to a sharp drop in product prices year-on-year. | ||||||||||||
Cost of Sales | 44,538,544 | 62,821,404 | -18,282,860 | -29.10 | % | Due to the decrease of unit price of crude oil and other major raw materials in the reporting period, the operating cost decreased year-on-year. | ||||||||||||
R&D Expenses | 56,596 | 29,301 | 29,295 | 99.98 | % | Research and development projects related to carbon fiber investment increased. | ||||||||||||
Impairment of assets | 120,928 | -24,786 | 145,714 | -587.89 | % | In March 2020, the crude oil prices fell sharply, and the Company made provision for inventory depreciation. | ||||||||||||
Income tax expenses | -352,418 | 285,697 | -638,115 | -223.35 | % | Affected by COVID-19 and the industry downward cycle, the Company made operating loss in the Reporting Period | ||||||||||||
Operating profit | -945,416 | 2,024,585 | -2,970,001 | -146.70 | % | Affected by COVID-19 and downside cycle of the industry, the sales price of the products in this period dropped significantly, resulting in operating losses. | ||||||||||||
Total profit | -984,967 | 1,998,199 | -2,983,166 | -149.29 | % | |||||||||||||
Net profit | -632,549 | 1,712,502 | -2,345,051 | -136.94 | % |
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Item | For the nine-month period ended 30 September | Increase/ decrease amount | Change (%) | Major reason for change | ||||||||||||||
2020 | 2019 | |||||||||||||||||
Net cash flows used from operating activities | -2,114,789 | -414,628 | -1,700,161 | 410.04 | % | Affected by the fluctuation of international oil price, the sales profit of the reporting period decreased year-on- year. The balance of operating items payable such as taxes payable has declined, and the net cash outflow from operating activities increased, resulting in the increase of net cash outflow from operating activities. | ||||||||||||
Net cash flows used from investing activities | -4,985,913 | -2,826,492 | -2,159,421 | 76.40 | % | Due to the investment in the merger and acquisition of Zhejiang Jinlian petrochemical storage and Transportation Co., Ltd. and the increase of structural deposits in the reporting period, the cash outflow from investing activities increased. | ||||||||||||
Net cash flows generated/(used) from financing activities | 3,123,031 | -2,265,390 | 5,388,421 | -237.86 | % | In the reporting period, short- term financing bonds were issued, resulting in the increase in cash inflows from financing activities. |
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3.2 | A warning and an explanation for the forecast that the accumulated net profit from the beginning of the year to the end of the next reporting period may be a loss, or the major changes compared with the same period of last year |
Due to the spread of COVID-19 and abnormal price fluctuations in the international crude oil market and other factors, the prices of the Company’s major products have dropped significantly in the first three quarters of 2020 compared with the same period of last year, and the gross profit of the products has dropped significantly, which has a negative impact on the Company’s sales revenue and profit. It is expected that in the fourth quarter of 2020, the Company will still face the severe and complex domestic and international economic situation and industrial situation, and the Company’s accumulated net profit in 2020 will drop significantly compared with the same period of last year.
The above information is only a preliminary estimate, the accurate financial data shall be subject to the Company’s officially disclosed annual report for 2020.
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4. Appendix
4.1 | CONSOLIDATED BALANCE SHEETS |
AS | AT 30 SEPTEMBER 2020 |
Unit: RMB’000 Audit type:unaudited
Items | As at 30 September 2020 | As at 31 December 2019 | ||||||
Current assets | ||||||||
Cash at bank and on hand | 4,473,987 | 8,958,538 | ||||||
Transactional financial assets | 1,421,500 | 3,318,407 | ||||||
Derivative financial assets | 20,828 | 263 | ||||||
Accounts payable | 1,954,850 | 1,639,916 | ||||||
Accounts receivable financing | 1,487,260 | 1,540,921 | ||||||
Advances to suppliers | 75,417 | 56,602 | ||||||
Other receivables | 27,626 | 28,111 | ||||||
Including: Interests receivable | 728 | 10,927 | ||||||
Inventories | 5,045,633 | 6,754,434 | ||||||
Other assets classified as held for sale | 3,046,324 | 11,971 | ||||||
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Total current assets | 17,553,425 | 22,309,163 | ||||||
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Non-current assets | ||||||||
Long-term equity investments | 5,682,168 | 5,328,758 | ||||||
Investment in other equity instruments | 5,000 | 5,000 | ||||||
Investment properties | 371,419 | 367,468 | ||||||
Fixed assets | 11,729,840 | 11,322,850 | ||||||
Construction in progress | 1,193,922 | 1,815,549 | ||||||
Right-of-use assets | 16,995 | 23,648 | ||||||
Intangible assets | 418,159 | 337,846 | ||||||
Long-term prepaid expenses | 417,432 | 463,780 | ||||||
Deferred tax assets | 533,458 | 150,832 | ||||||
Other non-current assets | 7,019,457 | 3,511,234 | ||||||
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Total non-current assets | 27,387,850 | 23,326,965 | ||||||
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Total assets | 44,941,275 | 45,636,128 | ||||||
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CONSOLIDATED BALANCE SHEETS (CONTINUED)
AS AT 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | As at 30 September 2020 | As at 31 December 2019 | ||||||
Current liabilities | ||||||||
Short-term borrowings | 3,040,000 | 1,547,600 | ||||||
Derivative financial liabilities | 30,509 | 799 | ||||||
Notes payable | 555,534 | 733,900 | ||||||
Accounts payable | 5,979,599 | 7,664,296 | ||||||
Contract Liabilities | 631,352 | 660,783 | ||||||
Employee benefits payable | 624,920 | 189,547 | ||||||
Taxes payable | 1,250,938 | 3,803,287 | ||||||
Other payables | 1,539,767 | 867,967 | ||||||
Including: Interests payable | 2,208 | 1,686 | ||||||
Dividends payable | 29,522 | 29,144 | ||||||
Non-current liabilities due within one year | 11,067 | 11,450 | ||||||
Other current liabilities | 3,004,123 | — | ||||||
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Total current liabilities | 16,667,809 | 15,479,629 | ||||||
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Non-current liabilities | ||||||||
Lease liabilities | 6,890 | 10,593 | ||||||
Deferred revenue | 122,505 | 130,005 | ||||||
Deferred tax liabilities | 36,704 | — | ||||||
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Total non-current liabilities | 166,099 | 140,598 | ||||||
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Total liabilities | 16,833,908 | 15,620,227 | ||||||
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Owners’ equity (or shareholders’ equity) | ||||||||
Paid-in capital (or share capital) | 10,823,814 | 10,823,814 | ||||||
Capital surplus | 610,327 | 610,327 | ||||||
Other comprehensive income | 9,830 | 17,838 | ||||||
Specific reserve | 92,919 | 57,137 | ||||||
Surplus reserve | 6,437,010 | 6,437,010 | ||||||
Undistributed profits | 9,998,138 | 11,939,215 | ||||||
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Total equity attributable to equity owners (or shareholders) of the Company | 27,972,038 | 29,885,341 | ||||||
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Minority interests | 135,329 | 130,560 | ||||||
Total Owners’ equity (or shareholders’ equity) | 28,107,367 | 30,015,901 | ||||||
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Total liabilities and Owners’ equity (or shareholders’ equity) | 44,941,275 | 45,636,128 | ||||||
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PARENT COMPANY BALANCE SHEETS
AS AT 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | As at 30 September 2020 | As at 31 December 2019 | ||||||
Current assets | ||||||||
Cash at bank and on hand | 3,113,935 | 7,263,279 | ||||||
Transactional financial assets | 1,421,500 | 3,318,407 | ||||||
Derivative financial assets | 20,828 | — | ||||||
Accounts payable | 1,568,405 | 1,310,449 | ||||||
Accounts receivable financing | 686,242 | 669,889 | ||||||
Advances to suppliers | 34,710 | 47,547 | ||||||
Other receivables | 16,652 | 14,637 | ||||||
Including: Interests receivable | 290 | 10,617 | ||||||
Inventories | 4,830,435 | 6,368,389 | ||||||
Other assets classified as held for sale | 3,029,919 | — | ||||||
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Total current assets | 14,722,626 | 18,992,597 | ||||||
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Non-current assets | ||||||||
Long-term equity investments | 7,007,410 | 6,489,898 | ||||||
Investment properties | 400,762 | 397,573 | ||||||
Fixed assets | 11,277,355 | 11,123,442 | ||||||
Construction in progress | 1,189,911 | 1,814,985 | ||||||
Right-of-use assets | 13,507 | 20,520 | ||||||
Intangible assets | 289,466 | 298,914 | ||||||
Long-term prepaid expenses | 409,192 | 455,391 | ||||||
Deferred tax assets | 521,777 | 138,648 | ||||||
Other non-current assets | 7,019,457 | 3,511,234 | ||||||
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Total non-current assets | 28,128,837 | 24,250,605 | ||||||
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Total assets | 42,851,463 | 43,243,202 | ||||||
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PARENT COMPANY BALANCE SHEETS (CONTINUED)
AS AT 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | As at the end of the period | As at the beginning of the year | ||||||
Current liabilities | ||||||||
Short-term borrowings | 3,000,000 | 1,500,000 | ||||||
Derivative financial liabilities | 30,509 | — | ||||||
Notes payable | 514,196 | 715,000 | ||||||
Accounts payable | 4,917,348 | 5,951,568 | ||||||
Contract Liabilities | 542,947 | 601,912 | ||||||
Employee benefits payable | 615,007 | 183,912 | ||||||
Taxes payable | 1,222,891 | 3,776,221 | ||||||
Other payables | 1,503,050 | 854,759 | ||||||
Including: Interests payable | 2,167 | 1,531 | ||||||
Dividends payable | 29,522 | 29,144 | ||||||
Non-current liabilities due within one year | 8,904 | 10,059 | ||||||
Other current liabilities | 3,004,123 | — | ||||||
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Total current liabilities | 15,358,975 | 13,593,431 | ||||||
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Non-current liabilities | ||||||||
Lease liabilities | 5,582 | 8,860 | ||||||
Deferred revenue | 122,505 | 130,005 | ||||||
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Total non-current liabilities | 128,087 | 138,865 | ||||||
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Total liabilities | 15,487,062 | 13,732,296 | ||||||
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Owners’ equity (or shareholders’ equity) | ||||||||
Paid-in capital (or share capital) | 10,823,814 | 10,823,814 | ||||||
Capital surplus | 600,768 | 600,768 | ||||||
Other comprehensive income | 9,830 | 17,838 | ||||||
Specific reserve | 92,919 | 57,135 | ||||||
Surplus reserve | 6,437,010 | 6,437,010 | ||||||
Undistributed profits | 9,400,060 | 11,574,341 | ||||||
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Total Owners’ equity (or shareholders’ equity) | 27,364,401 | 29,510,906 | ||||||
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Total liabilities and Owners’ equity (or shareholders’ equity) | 42,851,463 | 43,243,202 | ||||||
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4.2 | CONSOLIDATED INCOME STATEMENTS |
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | Third quarter of 2020 (July to September) | Third quarter of 2019 (July to September) | First three quarters of 2020 (January to September) | First three quarters of 2019 (January to September) | ||||||||||||
Total revenue | 19,290,616 | 23,377,016 | 54,953,968 | 75,369,599 | ||||||||||||
Including: Revenue | 19,290,616 | 23,377,016 | 54,953,968 | 75,369,599 | ||||||||||||
Total operating cost | 18,151,906 | 23,065,995 | 56,406,200 | 74,160,447 | ||||||||||||
Including: Cost of sales | 13,628,744 | 19,156,674 | 44,538,544 | 62,821,404 | ||||||||||||
Taxes and surcharges | 3,778,954 | 3,188,715 | 9,480,751 | 9,018,863 | ||||||||||||
Selling and distribution expenses | 118,898 | 128,952 | 348,864 | 389,367 | ||||||||||||
General and administrative expenses | 700,395 | 673,567 | 2,211,438 | 2,189,749 | ||||||||||||
R&D expenses | 11,068 | 7,922 | 58,596 | 29,301 | ||||||||||||
Financial expenses | -86,153 | -89,835 | -231,993 | -288,237 | ||||||||||||
Add: Other income | 4,333 | 460 | 20,828 | 3,011 | ||||||||||||
Investment income (“-” to indicate loss) | 166,016 | 189,251 | 500,744 | 709,218 | ||||||||||||
Including: Share of income of associates and joint ventures | 140,996 | 225,633 | 414,708 | 717,863 | ||||||||||||
Change in fair value gains (“-” to indicate loss) | -5,652 | 5,191 | 3,629 | -7,250 | ||||||||||||
Asset impairment losses (“-” to indicate loss) | — | — | — | -2 | ||||||||||||
Asset impairment losses (“-” to indicate loss) | — | — | -120,928 | -24,786 | ||||||||||||
Asset disposal income (“-” to indicate loss) | 87,287 | 153,966 | 102,543 | 135,242 |
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CONSOLIDATED INCOME STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | Third quarter of 2020 (July to September) | Third quarter of 2019 (July to September) | First three quarters of 2020 (January to September) | First three quarters of 2019 (January to September) | ||||||||||||
Operating profit (“-” to indicate loss) | 1,390,694 | 659,889 | -945,416 | 2,024,585 | ||||||||||||
Add: Non-operating income | 6,369 | 2,112 | 13,075 | 12,998 | ||||||||||||
Less: Non-operating expenses | 27,412 | 23,045 | 52,626 | 39,384 | ||||||||||||
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Total profit (“-” to indicate loss) | 1,369,651 | 638,956 | -984,967 | 1,998,199 | ||||||||||||
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Less: Income tax expenses | 293,882 | 70,171 | -352,418 | 285,697 | ||||||||||||
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Net Profit (“-” to indicate loss) | 1,075,769 | 568,785 | -632,549 | 1,712,502 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Classification by business continuity | ||||||||||||||||
1. Profit from continuing operations (“-” to indicate loss) | 1,075,769 | 568,785 | -632,549 | 1,712,502 | ||||||||||||
Classification by ownership | ||||||||||||||||
1. Attributable to equity shareholders of the Company (“-” to indicate loss) | 1,073,853 | 534,891 | -642,219 | 1,672,132 | ||||||||||||
2. Minority interests (“-” to indicate loss) | 1,916 | 33,894 | 9,670 | 40,370 | ||||||||||||
Other comprehensive income, net of tax | 1,248 | — | -8,008 | -3,667 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total comprehensive income | 1,077,017 | 568,785 | -640,557 | 1,708,835 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Attributable to equity shareholders of the Company | 1,075,101 | 534,891 | -650,227 | 1,668,465 | ||||||||||||
Minority interests | 1,916 | 33,894 | 9,670 | 40,370 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic earnings per share (RMB) | 0.099 | 0.039 | -0.059 | 0.144 | ||||||||||||
Diluted earnings per share (RMB) | 0.099 | 0.039 | -0.059 | 0.144 |
15
PARENT COMPANY INCOME STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | Third quarter of 2020 (July to September) | Third quarter of 2019 (July to September) | First three quarters of 2020 (January to September) | First three quarters of 2019 (January to September) | ||||||||||||
Revenue | 16,533,774 | 19,739,126 | 46,213,006 | 58,201,333 | ||||||||||||
Less: Cost of sales | 10,949,967 | 15,580,341 | 36,048,185 | 45,896,166 | ||||||||||||
Taxes and surcharges | 3,775,600 | 3,184,365 | 9,470,469 | 9,002,880 | ||||||||||||
Selling and distribution expenses | 95,676 | 106,167 | 287,219 | 321,851 | ||||||||||||
General and administrative expenses | 678,240 | 648,420 | 2,151,132 | 2,109,136 | ||||||||||||
R&D expenses | 7,926 | 5,823 | 51,590 | 23,354 | ||||||||||||
Financial expenses | -80,799 | -72,706 | -210,389 | -258,220 | ||||||||||||
Add: Other income | 2,086 | 342 | 17,230 | 1,294 | ||||||||||||
Investment income (“-” to indicate loss) | 159,717 | 209,083 | 446,095 | 711,098 | ||||||||||||
Including: Share of income of associates and joint ventures | 231,071 | 208,362 | 459,064 | 671,858 | ||||||||||||
Change in fair value gains (“-” to indicate loss) | -5,944 | 5,495 | 3,093 | -6,757 | ||||||||||||
Credit impairment losses (“-” to indicate loss) | — | — | — | -7 | ||||||||||||
Asset impairment losses (“-” to indicate loss) | — | — | -120,140 | -24,786 | ||||||||||||
Asset disposal income (“-” to indicate loss) | -37 | -3,243 | 15,219 | -27,015 | ||||||||||||
Operating profit (“-” to indicate loss) | 1,262,986 | 498,393 | -1,223,703 | 1,759,993 | ||||||||||||
Add: Non-operating income | 4,584 | 2,005 | 11,150 | 7,141 | ||||||||||||
Less: Non-operating expenses | 27,376 | 23,042 | 52,581 | 39,379 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total profit (“-” to indicate loss) | 1,240,194 | 477,356 | -1,265,134 | 1,727,755 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Income tax expenses | 283,479 | 63,142 | -389,711 | 256,560 | ||||||||||||
Net Profit (“-” to indicate loss) | 956,715 | 414,214 | -875,423 | 1,471,195 | ||||||||||||
1. Profit from continuing operations (“-” to indicate loss) | 956,715 | 414,214 | -875,423 | 1,471,195 | ||||||||||||
Other comprehensive income, net of tax | 1,248 | — | -8,008 | -3,667 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total comprehensive income | 957,963 | 414,214 | -883,431 | 1,467,528 | ||||||||||||
|
|
|
|
|
|
|
|
16
4.3 | CONSOLIDATED CASH FLOW STATEMENTS |
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | First three quarters of 2020 (January to September) | First three quarters of 2019 (January to September) | ||||||
1. Cash flows from operating activities | ||||||||
Cash received from sales of goods or rendering of services | 59,664,017 | 82,838,287 | ||||||
Refund of taxes and surcharges | 3,040 | 1,498 | ||||||
Cash received relating to other operating activities | 286,600 | 142,416 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 59,953,657 | 82,982,201 | ||||||
|
|
|
| |||||
Cash paid for goods and services | 47,197,250 | 67,619,497 | ||||||
Cash paid to and on behalf of employees | 1,858,747 | 1,917,525 | ||||||
Payments of taxes and surcharges | 12,769,797 | 13,437,183 | ||||||
Cash paid relating to other operating activities | 242,652 | 422,624 | ||||||
|
|
|
| |||||
Sub-total of cash outflows | 62,068,446 | 83,396,829 | ||||||
|
|
|
| |||||
Net cash flows generated from operating activities | -2,114,789 | -414,628 | ||||||
|
|
|
| |||||
2. Cash flows from investing activities | ||||||||
Cash received from entrusted lending | 9,601,942 | 2,753,630 | ||||||
Cash received from returns on investments | 88,154 | 87,469 | ||||||
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 95,660 | 214,370 | ||||||
Net cash received from disposal of subsidiaries and other operating units | — | -404 | ||||||
Cash received relating to other investing activities | 705,982 | 3,434,755 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 10,491,738 | 6,489,820 | ||||||
|
|
|
| |||||
Cash paid to acquire fixed assets, intangible assets and other long-term assets | 1,021,374 | 937,712 | ||||||
Cash paid to entrusted lending | 7,600,000 | 753,184 | ||||||
Cash paid to other related investment activities | 340,315 | — | ||||||
Net cash received from subsidiaries and other business units | 6,515,962 | 7,625,416 | ||||||
|
|
|
| |||||
Sub-total of cash outflows | 15,477,651 | 9,316,312 | ||||||
|
|
|
| |||||
Net cash flows generated from operating activities. | -4,985,913 | -2,826,492 | ||||||
|
|
|
|
17
CONSOLIDATED CASH FLOW STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | First three quarters of 2020 (January to September) | First three quarters of 2019 (January to September) | ||||||
3. Cash flows from financing activities | ||||||||
Cash received from borrowings | 6,446,569 | 3,730,100 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 6,446,569 | 3,730,100 | ||||||
|
|
|
| |||||
Cash repayments of borrowings | 1,958,562 | 3,184,749 | ||||||
Cash paid for distribution of dividends or profits and interest expenses | 1,354,427 | 2,733,816 | ||||||
Cash paid for other financing activities | 10,549 | 76,925 | ||||||
|
|
|
| |||||
Sub-total of cash outflows | 3,323,538 | 5,995,490 | ||||||
|
|
|
| |||||
Net cash flows generated from financing activities | 3,123,031 | -2,265,390 | ||||||
|
|
|
| |||||
4. Effect of foreign exchange rate changes on cash and cash equivalents | -2,711 | 12,627 | ||||||
5. Net increase in cash and cash equivalents | -3,980,382 | -5,493,883 | ||||||
Add: Cash and cash equivalents at beginning of the period | 7,449,699 | 8,241,893 | ||||||
6. Cash and cash equivalents at end of the period | 3,469,317 | 2,748,010 |
18
CASH FLOW STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | First three quarters of 2020 (January to September) | First three quarters of 2019 (January to September) | ||||||
1. Cash flows from operating activities | ||||||||
Cash received from sales of goods or rendering of services | 50,560,093 | 64,505,401 | ||||||
Refund of taxes and surcharges | 1,115 | — | ||||||
Cash received relating to other operating activities | 259,863 | 171,983 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 50,821,071 | 64,677,384 | ||||||
|
|
|
| |||||
Cash paid for goods and services | 37,905,448 | 49,603,020 | ||||||
Cash paid to and on behalf of employees | 1,752,294 | 1,804,996 | ||||||
Payments of taxes and surcharges | 12,698,503 | 13,318,250 | ||||||
Cash paid relating to other operating activities | 288,748 | 253,141 | ||||||
|
|
|
| |||||
Sub-total of cash outflows | 52,644,993 | 64,979,407 | ||||||
|
|
|
| |||||
Net cash flows generated from operating activities | -1,823,922 | -302,023 | ||||||
|
|
|
| |||||
2. Cash flows from investing activities | ||||||||
Cash received from the recovery of investments | 9,198,184 | 2,552,461 | ||||||
Cash received from investment income | 42,621 | 36,958 | ||||||
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 21,466 | 65,313 | ||||||
Cash received relating to other investing activities | 706,053 | 3,412,340 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 9,968,324 | 6,067,072 | ||||||
|
|
|
| |||||
Cash paid to acquire fixed assets, intangible assets and other long-term assets | 1,016,546 | 925,218 | ||||||
Cash paid to investment activities | 7,400,000 | 827,943 | ||||||
Cash paid to other related investment activities | 6,512,970 | 7,613,200 | ||||||
|
|
|
| |||||
Sub-total of cash outflows | 14,929,516 | 9,366,361 | ||||||
|
|
|
| |||||
Net cash flows used in investing activities | -4,961,192 | -3,299,289 | ||||||
|
|
|
|
19
CASH FLOW STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2020
Unit: RMB’000 Audit type:unaudited
Items | First three quarters of 2020 (January to September) | First three quarters of 2019 (January to September) | ||||||
3. Cash flows from financing activities | ||||||||
Cash received from borrowings | 6,396,576 | 3,700,000 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 6,396,576 | 3,700,000 | ||||||
|
|
|
| |||||
Cash repayments of borrowings | 1,900,969 | 3,131,649 | ||||||
Cash paid for distribution of dividends or profits and interest expenses | 1,347,631 | 2,734,015 | ||||||
Cash paid for related financing activities | 8,037 | 74,954 | ||||||
|
|
|
| |||||
Sub-total of cash outflows | 3,256,637 | 5,940,618 | ||||||
|
|
|
| |||||
Net cash flows generated from financing activities | 3,139,939 | -2,240,618 | ||||||
|
|
|
| |||||
4. Effect of foreign exchange rate changes on cash and cash equivalents | — | — | ||||||
5. Net increase in cash and cash equivalents | -3,645,175 | -5,841,930 | ||||||
Add: Cash and cash equivalents at beginning of the period | 5,754,440 | 7,119,013 | ||||||
6. Cash and cash equivalents at end of the period | 2,109,265 | 1,277,083 |
By Order of the Board Sinopec Shanghai Petrochemical Company Limited Huang Fei Joint Company Secretary |
Shanghai, the PRC, 28 October 2020
20