Exhibit 99.1
(A joint stock limited company incorporated in the People’s Republic of China)
(Stock Code: 00338)
2021 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 2021 third quarterly report for the nine months ended 30 September 2021, 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 | 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. |
1.3 | The financial report of the Company’s 2021 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
The Reporting Period (July to September) | Increase/decrease as compared to the corresponding period of the previous year (%) | From the beginning of the year to the end of the Reporting Period (January to September) | Increase/decrease as compared to the corresponding period of the previous year (%) | |||||||||||||
Revenue | 24,726,487 | 28.18 | % | 61,863,093 | 12.57 | % | ||||||||||
Net profit attributable to equity shareholders of the Company | 720,861 | -32.87 | % | 1,965,050 | Not Applicable | |||||||||||
Net profit attributable to equity shareholders of the Company excluding non-recurring items | 715,775 | -25.81 | % | 1,885,201 | Not Applicable | |||||||||||
Net cash flows generated from operating activities | 2,045,941 | 159.18 | % | -343,611 | Not Applicable | |||||||||||
Basic earnings per share (RMB/share) | 0.067 | -33.00 | % | 0.182 | Not Applicable | |||||||||||
Diluted earnings per share (RMB/share) | 0.067 | -33.00 | % | 0.182 | Not Applicable | |||||||||||
Return on net assets (weighted average) (%) | 2.408 | | Decreased by 1.86 percentage points | | 6.572 | | Increased by 8.90 percentage points | | ||||||||
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 | 47,225,715 | 44,749,173 | 5.53 | % | ||||||||||||
Total equity attributable to equity shareholders of the Company | 30,219,104 | 29,218,033 | 3.43 | % |
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2.2 | Excluded non-recurring items and amount |
Unit: RMB’000
Item | Amount for the Reporting Period (July to September) | Amount from the beginning of the year to the end of the Reporting Period (January to September) | ||||||
Earnings or losses on disposal of non-current assets (including the write off part of the provision for asset impairment) | 0 | 62,290 | ||||||
Government grants recognized in current profits and losses (except for closely related to the regular operating of the Company, comply with national policies and regulations, and continuously comfort according to certain standards, quotas or quantities) | 22,132 | 33,544 | ||||||
Dismissal benefits | -1,813 | -10,250 | ||||||
Gains from changes in fair value of derivative financial assets and liabilities | 3,935 | 27,278 | ||||||
Investment income from structured deposits | 27,326 | 49,535 | ||||||
Foreign exchange options and forward foreign exchange contracts earnings/(losses) | 0 | -151 | ||||||
Losses on discount of receivables | -993 | -3,089 | ||||||
Other non-operating income and expenses other than those mentioned above | -43,514 | -52,935 | ||||||
Sub-total | 7,073 | 106,222 | ||||||
Less: Tax effect for the items above | -1,884 | -26,724 | ||||||
Effect on Non-Controlling interests (after tax) | -103 | 351 | ||||||
Total | 5,086 | 79,849 | ||||||
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2.3 | Description of Substantial Changes in Major Financial Report Items and Financial Indicators of the Company |
Item | Change (%) | Major reason | ||
Net profit attributable to equity shareholders of the Company_during the Reporting Period | -32.87% | During the Reporting Period, the R&D investment increased and the income from asset disposal decreased. | ||
Net profit attributable to equity shareholders of the Company_ from the beginning of the year to the end of the Reporting Period | Not Applicable | From the beginning of the year to the end of the Reporting Period, the demand for petroleum and petrochemical products improved significantly, the product price increased and the Company’s operating performance improved significantly. | ||
Net profit attributable to equity shareholders of the Company excluding non-recurring items_ from the beginning of the year to the end of the Reporting Period | Not Applicable | From the beginning of the year to the end of the Reporting Period, the demand for petroleum and petrochemical products improved significantly, the product price increased and the Company’s operating performance improved significantly. | ||
Net cash flows generated from operating activities_during the Reporting Period | 159.18% | During the Reporting Period, the Company accelerated inventory turnover and reduced operating receivables. | ||
Net cash flows generated from operating activities_ from the beginning of the year to the end of the Reporting Period | Not Applicable | From the beginning of the year to the end of the Reporting Period, the Company’s operating performance improved significantly. | ||
Basic earnings per share (RMB/share)_during the Reporting Period | -33.00% | During the Reporting Period, the operating performance decreased year-on-year. | ||
Basic earnings per share (RMB/share)_ from the beginning of the year to the end of the Reporting Period | Not Applicable | From the beginning of the year to the end of the Reporting Period, the demand for petroleum and petrochemical products improved significantly, the product price increased, the Company’s operating performance improved significantly and the earnings per share increased. | ||
Diluted earnings per share (RMB/share)_during the Reporting Period | -33.00% | The Company has not issued any dilutive potential ordinary shares. Same reasons as basic earnings per share. | ||
Diluted earnings per share (RMB/share)_ from the beginning of the year to the end of the Reporting Period | Not Applicable | The Company has not issued any dilutive potential ordinary shares. Same reasons as basic earnings per share. |
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3. Shareholder’s Information
3.1 | 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 | 97,639 | |||||||||||
Shareholdings of the top ten shareholders | ||||||||||||
Name of shareholder (in full) | Type of shareholder | 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, marked or frozen | |||||||
Situation of the shares | Number | |||||||||||
China Petroleum & Chemical Corporation | State-owned legal person | 5,460,000,000 | 50.44 | 0 | None | 0 | ||||||
HKSCC (Nominees) Limited | Overseas legal person | 3,454,023,030 | 31.91 | 0 | Unknown | 0 | ||||||
HKSCC Limited | Others | 108,134,904 | 1.00 | 0 | None | 0 | ||||||
Wang Lei | Domestic natural person | 65,000,000 | 0.60 | 0 | None | 0 | ||||||
China Merchants Bank Company Limited – SSE Dividend ETF | Others | 54,527,408 | 0.50 | 0 | None | 0 | ||||||
GF Fund – Agricultural Bank of China – GF CSI Financial Asset Management Plan | Others | 45,222,300 | 0.42 | 0 | None | 0 | ||||||
Dacheng Fund –Agricultural Bank of China – Dacheng CSI Financial Asset Management Plan | Others | 43,531,469 | 0.40 | 0 | None | 0 | ||||||
China Asset Fund – Agricultural Bank of China – China Asset CSI Financial Asset Management Plan | Others | 43,083,750 | 0.40 | 0 | None | 0 | ||||||
Bosera Fund –Agricultural Bank of China – Bosera CSI Financial Asset Management Plan | Others | 43,083,700 | 0.40 | 0 | None | 0 | ||||||
E Fund Fund– Agricultural Bank of China – E Fund CSI Financial Asset Management Plan | Others | 43,083,700 | 0.40 | 0 | None | 0 |
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Harvest Fund– Agricultural Bank of China – Harvest CSI Financial Asset Management Plan | Others | 43,083,700 | 0.40 | 0 | None | 0 | ||||||
China EU Fund– Agricultural Bank of China – China EU CSI Financial Asset Management Plan | Others | 43,083,700 | 0.40 | 0 | None | 0 | ||||||
Yinhua Fund– Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan | Others | 43,083,700 | 0.40 | 0 | None | 0 | ||||||
China Southern Fund– Agricultural Bank of China – China Southern CSI Financial Asset Management Plan | Others | 43,083,700 | 0.40 | 0 | None | 0 | ||||||
ICBC Credit Suisse Fund – Agricultural Bank of China – ICBC Credit Suisse CSI Financial Assets Management Scheme | Others | 43,083,700 | 0.40 | 0 | None | 0 |
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Shareholdings of the Top Ten Shareholders with Unlimited Conditions of Sale | ||||||
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 | 3,454,023,030 | Overseas listed foreign share | 3,454,023,030 | |||
HKSCC Limited | 108,134,904 | RMB common stocks | 108,134,904 | |||
Wang Lei | 65,000,000 | RMB common stocks | 65,000,000 | |||
China Merchants Bank Company Limited – SSE Dividend ETF | 54,527,408 | RMB common stocks | 54,527,408 | |||
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 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 | |||
China EU Fund– Agricultural Bank of China – China EU CSI Financial Asset Management Plan | 43,083,700 | RMB common stocks | 43,083,700 |
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Yinhua Fund– Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan | 43,083,700 | RMB common stocks | 43,083,700 | |||
China Southern Fund– 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 Assets Management Scheme | 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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4. | Appendix |
4.1 | CONSOLIDATED BALANCE SHEETS |
AS AT 30 SEPTEMBER 2021
Unit: RMB’000
Items | As at 30 September 2021 | As at 31 December 2020 | ||||||
(Unaudited) | (Audited) | |||||||
Current assets | ||||||||
Cash at bank and on hand | 6,040,627 | 7,920,852 | ||||||
Transactional financial assets | 3,477,278 | — | ||||||
Derivative financial assets | 159,160 | — | ||||||
Accounts payable | 1,587,960 | 1,145,504 | ||||||
Accounts receivable financing | 1,332,043 | 1,217,114 | ||||||
Advances to suppliers | 39,576 | 33,741 | ||||||
Other receivables | 1,501,968 | �� | 41,299 | |||||
Inventories | 6,254,512 | 3,888,746 | ||||||
Non current assets due within one year | 3,007,576 | — | ||||||
Other assets classified as held for sale | 31,659 | 3,057,587 | ||||||
Total current assets | 23,432,359 | 17,304,843 | ||||||
Non-current assets | ||||||||
Long-term equity investments | 3,994,521 | 5,497,834 | ||||||
Investment in other equity instruments | 5,000 | 5,000 | ||||||
Investment properties | 356,019 | 367,586 | ||||||
Fixed assets | 11,761,270 | 11,733,065 | ||||||
Construction in progress | 2,144,382 | 1,710,124 | ||||||
Right-of-use assets | 9,271 | 12,993 | ||||||
Intangible assets | 397,600 | 412,576 | ||||||
Long-term prepaid expenses | 780,531 | 410,191 | ||||||
Deferred tax assets | 90,245 | 252,121 | ||||||
Other non-current assets | 4,254,517 | 7,042,840 | ||||||
Total non-current assets | 23,793,356 | 27,444,330 | ||||||
Total assets | 47,225,715 | 44,749,173 |
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CONSOLIDATED BALANCE SHEETS (CONTINUED)
AS AT 30 SEPTEMBER 2021
Unit: RMB’000
Items | As at 30 September 2021 | As at 31 December 2020 | ||||||
(Unaudited) | (Audited) | |||||||
Current liabilities | ||||||||
Short-term borrowings | 3,540,000 | 1,548,000 | ||||||
Derivative financial liabilities | 57,292 | — | ||||||
Notes payable | 598,486 | 139,360 | ||||||
Accounts payable | 5,812,706 | 4,671,635 | ||||||
Contract Liabilities | 794,321 | 496,521 | ||||||
Employee benefits payable | 746,016 | 244,506 | ||||||
Taxes payable | 1,438,717 | 3,385,910 | ||||||
Other payables | 894,219 | 1,664,812 | ||||||
Non-current liabilities due within one year | 29,066 | 9,352 | ||||||
Other current liabilities | 2,104,630 | 3,072,150 | ||||||
Total current liabilities | 16,015,453 | 15,232,246 | ||||||
Non-current liabilities | ||||||||
Long-term borrowings | 700,000 | — | ||||||
Lease liabilities | 2,342 | 3,119 | ||||||
Deferred revenue | 115,220 | 123,433 | ||||||
Deferred tax liabilities | 35,162 | 35,357 | ||||||
Total non-current liabilities | 852,724 | 161,909 | ||||||
Total liabilities | 16,868,177 | 15,394,155 | ||||||
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 | 83,776 | 6,326 | ||||||
Specific reserve | 186,549 | 145,597 | ||||||
Surplus reserve | 6,474,103 | 6,474,103 | ||||||
Undistributed profits | 12,040,535 | 11,157,866 | ||||||
Total equity attributable to equity owners (or shareholders) of the Company | 30,219,104 | 29,218,033 | ||||||
Non-Controlling interests | 138,434 | 136,985 | ||||||
Total Owners’ equity (or shareholders’ equity) | 30,357,538 | 29,355,018 | ||||||
Total liabilities and Owners’ equity (or shareholders’ equity) | 47,225,715 | 44,749,173 |
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4.2 | CONSOLIDATED INCOME STATEMENTS |
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021
Unit: RMB’000 Audit type:unaudited
Items | First three quarters of 2021 (January to September) | First three quarters of 2020 (January to September) | ||||||
Total revenue | 61,863,093 | 54,953,968 | ||||||
Including: Revenue | 61,863,093 | 54,953,968 | ||||||
Total operating cost | 60,150,245 | 56,406,200 | ||||||
Including: Cost of sales | 48,013,441 | 44,538,544 | ||||||
Taxes and surcharges | 9,194,779 | 9,480,751 | ||||||
Selling and distribution expenses | 322,451 | 348,864 | ||||||
General and administrative expenses | 2,828,633 | 2,211,438 | ||||||
R&D expenses | 75,153 | 58,596 | ||||||
Financial expenses | -284,212 | -231,993 | ||||||
Add: Other income | 25,331 | 20,828 | ||||||
Investment income (“-” to indicate loss) | 777,741 | 500,744 | ||||||
Change in fair value gains (“-” to indicate loss) | 27,278 | 3,629 | ||||||
Asset impairment losses (“-” to indicate loss) | -108,485 | -120,928 | ||||||
Asset disposal income (“-” to indicate loss) | 79,085 | 102,543 |
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CONSOLIDATED INCOME STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021
Unit: RMB’000 Audit type:unaudited
Items | First three quarters of 2021 (January to September) | First three quarters of 2020 (January to September) | ||||||
Operating profit (“-” to indicate loss) | 2,513,798 | -945,416 | ||||||
Add: Non-operating income | 11,365 | 13,075 | ||||||
Less: Non-operating expenses | 72,881 | 52,626 | ||||||
Total profit (“-” to indicate loss) | 2,452,282 | -984,967 | ||||||
Less: Income tax expenses | 480,882 | -352,418 | ||||||
Net Profit (“-” to indicate loss) | 1,971,400 | -632,549 | ||||||
Classification by business continuity | ||||||||
Classification by ownership | ||||||||
1. Attributable to equity shareholders of the Company (“-” to indicate loss) | 1,965,050 | -642,219 | ||||||
2. Non-Controlling interests (“-” to indicate loss) | 6,350 | 9,670 | ||||||
Other comprehensive income, net of tax | 77,450 | -8,008 | ||||||
Net income after tax of other comprehensive income attributable to the equity shareholders of the Company | 77,450 | -8,008 | ||||||
1. Other comprehensive income that can be transferred to profit or loss under equity method | 702 | -8,008 | ||||||
2. Cash flow hedging reserve | 76,748 | — | ||||||
Total comprehensive income | 2,048,850 | -640,557 | ||||||
Attributable to equity shareholders of the Company | 2,042,500 | -650,227 | ||||||
Non-Controlling interests | 6,350 | 9,670 | ||||||
Earnings per share | ||||||||
Basic earnings per share (RMB) | 0.182 | -0.059 | ||||||
Diluted earnings per share (RMB) | 0.182 | -0.059 |
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4.3 | CONSOLIDATED CASH FLOW STATEMENTS |
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021
Unit: RMB’000 Audit type:unaudited
Items | First three quarters of 2021 (January to September) | First three quarters of 2020 (January to September) | ||||||
1. Cash flows from operating activities | ||||||||
Cash received from sales of goods or rendering of services | 65,528,288 | 59,664,017 | ||||||
Refund of taxes and surcharges | 98,018 | 3,040 | ||||||
Cash received relating to other operating activities | 165,997 | 286,600 | ||||||
Sub-total of cash inflows | 65,792,303 | 59,953,657 | ||||||
Cash paid for goods and services | 51,964,737 | 47,197,250 | ||||||
Cash paid to and on behalf of employees | 2,107,455 | 1,858,747 | ||||||
Payments of taxes and surcharges | 11,784,185 | 12,769,797 | ||||||
Short-term and low value lease expenses | 7,657 | — | ||||||
Cash paid relating to other operating activities | 271,880 | 242,652 | ||||||
Sub-total of cash outflows | 66,135,914 | 62,068,446 | ||||||
Net cash flows generated from operating activities | (343,611 | ) | (2,114,789 | ) | ||||
2. Cash flows from investing activities | ||||||||
Cash received from investment recovery | 4,700,000 | 9,601,942 | ||||||
Cash received from returns on investments | 746,659 | 88,154 | ||||||
Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 69,099 | 95,660 | ||||||
Cash received relating to other investing activities | 3,374,332 | 705,982 | ||||||
Sub-total of cash inflows | 8,890,090 | 10,491,738 | ||||||
Cash paid to acquire fixed assets, intangible assets and other long-term assets | 2,617,962 | 1,021,374 | ||||||
Cash paid for investment | 8,150,000 | 7,600,000 | ||||||
Net cash received from subsidiaries and other business units | — | 340,315 | ||||||
Cash paid to other related investment activities | 1,999,537 | 6,515,962 | ||||||
Sub-total of cash outflows | 12,767,499 | 15,477,651 | ||||||
Net cash flows generated from operating activities. | (3,877,409 | ) | (4,985,913 | ) |
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CONSOLIDATED CASH FLOW STATEMENTS (CONTINUED)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2021
Unit: RMB’000 Audit type:unaudited
Items | First three quarters of 2021 (January to September) | First three quarters of 2020 (January to September) | ||||||
3. Cash flows from financing activities | ||||||||
Cash received from borrowings | 18,663,131 | 6,446,569 | ||||||
Sub-total of cash inflows | 18,663,131 | 6,446,569 | ||||||
Cash repayments of borrowings | 16,951,131 | 1,958,562 | ||||||
Cash paid for distribution of dividends or profits and interest expenses | 1,166,963 | 1,354,427 | ||||||
Cash and interest repaid for lease liabilities | 10,721 | — | ||||||
Cash paid for other financing activities | — | 10,549 | ||||||
Sub-total of cash outflows | 18,128,815 | 3,323,538 | ||||||
Net cash flows generated from financing activities | 534,316 | 3,123,031 | ||||||
4. Effect of foreign exchange rate changes on cash and cash equivalents | (2,063 | ) | (2,711 | ) | ||||
5. Net increase in cash and cash equivalents | (3,688,767 | ) | (3,980,382 | ) | ||||
Add: Cash and cash equivalents at beginning of the Reporting Period | 6,916,408 | 7,449,699 | ||||||
6. Cash and cash equivalents at end of the Reporting Period | 3,227,641 | 3,469,317 |
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By Order of the Board Sinopec Shanghai Petrochemical Company Limited Liu Gang Joint Company Secretary |
Shanghai, the PRC, 27 October 2021
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