By Order of the Board
|
|
China Petroleum & Chemical Corporation
|
|
Huang Wensheng
|
|
Vice President and Secretary to the Board of Directors
|
#
|
Executive Director
|
|
*
|
Non-executive Director
|
|
+
|
Independent Non-executive Director
|
2 |
Company Profile
|
3 |
Principal Financial Data and Indicators
|
6 |
Changes in Share Capital and Shareholdings of Principal Shareholders
|
8 |
Chairman’s Address
|
10 |
Business Review and Prospects
|
17 |
Management’s Discussion and Analysis
|
28 |
Significant Events
|
37 |
Connected Transactions
|
39 |
Corporate Governance
|
46 |
Report of the Board of Directors
|
54 |
Report of the Board of Supervisors
|
56 |
Directors, Supervisors, Senior Management and Employees
|
72 |
Principal Wholly-owned and Controlled Subsidiaries
|
73 |
Financial Statements
|
207 |
Corporate Information
|
208 |
Documents for Inspection
|
1 |
FINANCIAL DATA AND INDICATORS PREPARED IN ACCORDANCE WITH CASs
|
(1) |
Principal financial data
|
For the year ended 31 December
|
||||||||||||||||
Items
|
2019
RMB million
|
2018
RMB million
|
Change
%
|
2017
RMB million
|
||||||||||||
Operating income
|
2,966,193
|
2,891,179
|
2.6
|
2,360,193
|
||||||||||||
Operating profit
|
90,025
|
101,474
|
(11.3
|
)
|
86,965
|
|||||||||||
Profit before taxation
|
90,016
|
100,502
|
(10.4
|
)
|
86,573
|
|||||||||||
Net profit attributable to equity shareholders of the Company
|
57,591
|
63,089
|
(8.7
|
)
|
51,119
|
|||||||||||
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses
|
54,271
|
59,630
|
(9.0
|
)
|
45,582
|
|||||||||||
Net cash flow from operating activities
|
153,420
|
175,868
|
(12.8
|
)
|
190,935
|
For the year of 2019
|
||||||||||||||||||||
Items
|
First Quarter
RMB million
|
Second Quarter
RMB million
|
Third Quarter
RMB million
|
Fourth Quarter RMB million
|
Total
RMB million
|
|||||||||||||||
Operating income
|
717,579
|
781,417
|
734,309
|
732,888
|
2,966,193
|
|||||||||||||||
Net profit attributable to equity shareholders of the Company
|
14,763
|
16,575
|
11,943
|
14,310
|
57,591
|
|||||||||||||||
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses
|
14,370
|
16,081
|
11,095
|
12,725
|
54,271
|
|||||||||||||||
Net cash flow from operating activities
|
(14,609
|
)
|
47,527
|
48,480
|
72,022
|
153,420
|
As of 31 December
|
||||||||||||||||
2019
|
2018
|
Change
|
2017
|
|||||||||||||
Items
|
RMB million
|
RMB million
|
%
|
RMB million
|
||||||||||||
Total assets
|
1,755,071
|
1,592,308
|
10.2
|
1,595,504
|
||||||||||||
Total liabilities
|
878,166
|
734,649
|
19.5
|
741,434
|
||||||||||||
Total equity attributable to equity shareholders of the Company
|
739,169
|
718,355
|
2.9
|
727,244
|
||||||||||||
Total number of shares (1,000 shares)
|
121,071,210
|
121,071,210
|
–
|
121,071,210
|
(2) |
Principal financial indicators
|
For the year ended 31 December
|
||||||||||||||||
Items
|
2019
RMB
|
2018
RMB
|
Change
%
|
2017
RMB
|
||||||||||||
Basic earnings per share
|
0.476
|
0.521
|
(8.7
|
)
|
0.422
|
|||||||||||
Diluted earnings per share
|
0.476
|
0.521
|
(8.7
|
)
|
0.422
|
|||||||||||
Basic earnings per share (excluding extraordinary gains and losses)
|
0.448
|
0.493
|
(9.1
|
)
|
0.376
|
|||||||||||
Weighted average return on net assets (%)
|
7.90
|
8.67
|
(0.77)
percentage points
|
7.14
|
||||||||||||
Weighted average return (excluding extraordinary gains and losses) on net assets (%)
|
7.45
|
8.20
|
(0.75)
percentage points
|
6.37
|
||||||||||||
Net cash flow from operating activities per share
|
1.267
|
1.453
|
(12.8
|
)
|
1.577
|
As of 31 December
|
||||||||||||||||
Items
|
2019
RMB
|
2018
RMB
|
Change
%
|
2017
RMB
|
||||||||||||
Net assets attributable to equity shareholders of the Company per share
|
6.105
|
5.933
|
2.9
|
6.007
|
||||||||||||
Liabilities to assets ratio (%)
|
50.04
|
46.14
|
3.90
percentage points
|
46.47
|
(3) |
Extraordinary items and corresponding amounts
|
For the year ended 31 December
(Income)/expenses
|
||||||||||||
Items
|
2019
RMB million
|
2018
RMB million
|
2017
RMB million
|
|||||||||
Net loss on disposal of non-current assets
|
1,318
|
742
|
1,518
|
|||||||||
Donations
|
209
|
180
|
152
|
|||||||||
Government grants
|
(6,857
|
)
|
(7,482
|
)
|
(4,783
|
)
|
||||||
Gain on holding and disposal of various investments
|
(410
|
)
|
(1,023
|
)
|
(148
|
)
|
||||||
Gain on remeasurement of interests in Shanghai SECCO
|
—
|
—
|
(3,941
|
)
|
||||||||
Other non-operating expenses, net
|
729
|
1,613
|
690
|
|||||||||
Subtotal
|
(5,011
|
)
|
(5,970
|
)
|
(6,512
|
)
|
||||||
Tax effect
|
1,597
|
2,312
|
976
|
|||||||||
Total
|
(3,414
|
)
|
(3,658
|
)
|
(5,536
|
)
|
||||||
Attributable to: Equity shareholders of the Company
|
(3,320
|
)
|
(3,459
|
)
|
(5,537
|
)
|
||||||
Minority interests
|
(94
|
)
|
(199
|
)
|
1
|
(4) |
Items measured by fair values
|
Items
|
Beginning of the year
|
End of the year
|
Changes
|
Influence on the profit of the year
|
||||||||||||
Other equity instruments
|
1,450
|
1,521
|
71
|
492
|
||||||||||||
Derivative financial instruments
|
1,584
|
48
|
(1,536
|
)
|
(4,384
|
)
|
||||||||||
Cash flow hedging
|
(7,268
|
)
|
(1,940
|
)
|
5,328
|
(2,333
|
)
|
|||||||||
Financial assets held for trading
|
25,732
|
3,319
|
(22,413
|
)
|
215
|
|||||||||||
Total
|
21,498
|
2,948
|
(18,550
|
)
|
(6,010
|
)
|
(5) |
Significant changes of items in the financial statements
|
As of 31 December
|
Increase/(decrease)
|
||||||||||||||||
Items
|
2019
RMB million
|
2018
RMB million
|
Amount
RMB million
|
Percentage
(%)
|
Reasons for change
|
||||||||||||
Financial assets held for trading
|
3,319
|
25,732
|
(22,413
|
)
|
(87.1
|
)
|
Structured deposit withdrawal at maturity of RMB 22.8 billion
|
||||||||||
Bills receivable
|
–
|
7,886
|
(7,886
|
)
|
(100.0
|
)
|
According to the accounting standard, bills receivable held by the Company at the end of last year are presented in receivables financing
|
||||||||||
Long-term deferred expenses
|
8,930
|
15,659
|
(6,729
|
)
|
(43.0
|
)
|
|||||||||||
Financial expenses
|
9,967
|
(1,001
|
)
|
10,968
|
(1,095.7
|
)
|
The impact of New Lease Standard
|
||||||||||
Other cash paid relating to
|
(17,187
|
)
|
(436
|
)
|
(16,751
|
)
|
3,842.0
|
||||||||||
financing activities
|
|||||||||||||||||
Short-term loans
|
31,196
|
44,692
|
(13,496
|
)
|
(30.2
|
)
|
Short-term loans repayment at maturity
|
||||||||||
Non-current liabilities due within one year
|
69,490
|
17,450
|
52,040
|
298.2
|
Reclassification of items as some of the long-term loans
|
||||||||||||
Long-term loans
|
39,625
|
61,576
|
(21,951
|
)
|
(35.6
|
)
|
and debentures are about to due
|
||||||||||
Debentures payable
|
19,157
|
31,951
|
(12,794
|
)
|
(40.0
|
)
|
|||||||||||
Impairment losses
|
(1,789
|
)
|
(11,605
|
)
|
9,816
|
(84.6
|
)
|
Decrease of impairment losses in current year
|
|||||||||
Cash received from disposal of investments
|
35,996
|
56,546
|
(20,550
|
)
|
(36.3
|
)
|
Decrease of structured deposit
|
||||||||||
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
|
703
|
9,666
|
(8,963
|
)
|
(92.7
|
)
|
Relocation compensation entitled by subsidiaries last year not occurred in current year
|
||||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets
|
(141,142
|
)
|
(103,014
|
)
|
(38,128
|
)
|
37.0
|
Increase of capital expenditure in natural gas pipelines and product structure adjustment project
|
|||||||||
Cash paid for acquisition of investments
|
(16,334
|
)
|
(39,666
|
)
|
23,332
|
(58.8
|
)
|
Decrease of structured deposit
|
|||||||||
Cash paid for dividends, profits distribution or interest
|
(59,523
|
)
|
(87,483
|
)
|
27,960
|
(32.0
|
)
|
Decrease of dividend declared
|
2 |
FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS
|
For the year ended 31 December
|
||||||||||||||||||||
Items
|
2019
|
2018
|
2017
|
2016
|
2015
|
|||||||||||||||
Turnover and other operating revenues
|
2,966,193
|
2,891,179
|
2,360,193
|
1,930,911
|
2,020,375
|
|||||||||||||||
Operating profit
|
86,198
|
82,264
|
71,470
|
77,193
|
56,822
|
|||||||||||||||
Profit before taxation
|
89,927
|
99,110
|
86,697
|
80,151
|
56,411
|
|||||||||||||||
Profit attributable to shareholders of the Company
|
57,465
|
61,618
|
51,244
|
46,672
|
32,512
|
|||||||||||||||
Basic earnings per share (RMB)
|
0.475
|
0.509
|
0.423
|
0.385
|
0.269
|
|||||||||||||||
Diluted earnings per share (RMB)
|
0.475
|
0.509
|
0.423
|
0.385
|
0.269
|
|||||||||||||||
Return on capital employed (%)
|
8.99
|
9.25
|
8.26
|
7.30
|
5.23
|
|||||||||||||||
Return on net assets (%)
|
7.79
|
8.59
|
7.06
|
6.56
|
4.81
|
|||||||||||||||
Net cash generated from operating activities per share (RMB)
|
1.267
|
1.453
|
1.577
|
1.772
|
1.371
|
As of 31 December
|
||||||||||||||||||||
Items
|
2019
|
2018
|
2017
|
2016
|
2015
|
|||||||||||||||
Non-current assets
|
1,309,215
|
1,088,188
|
1,066,455
|
1,086,348
|
1,113,611
|
|||||||||||||||
Net current liabilities
|
130,518
|
60,978
|
50,397
|
73,282
|
129,175
|
|||||||||||||||
Non-current liabilities
|
302,862
|
170,675
|
163,168
|
181,831
|
196,275
|
|||||||||||||||
Non-controlling interests
|
137,685
|
139,251
|
126,770
|
120,241
|
111,964
|
|||||||||||||||
Total equity attributable to shareholders of the Company
|
738,150
|
717,284
|
726,120
|
710,994
|
676,197
|
|||||||||||||||
Net assets per share (RMB)
|
6.097
|
5.924
|
5.997
|
5.873
|
5.585
|
|||||||||||||||
Adjusted net assets per share (RMB)
|
5.947
|
5.741
|
5.868
|
5.808
|
5.517
|
3 |
MAJOR DIFFERENCES BETWEEN THE AUDITED FINANCIAL STATEMENTS PREPARED UNDER CASs AND IFRS PLEASE REFER TO PAGE 200 OF THE REPORT.
|
1 |
CHANGES IN THE SHARE CAPITAL
|
2 |
NUMBER OF SHAREHOLDERS AND THEIR SHAREHOLDINGS
|
(1) |
Shareholdings of top ten shareholders
|
Name of shareholders
|
Nature of Shareholders
|
Percentage of shareholdings %
|
Total number of shares held
|
Changes of shareholding1
|
Number of shares subject to pledges or lock-up
|
||||||||||||
China Petrochemical Corporation
|
State-owned Share
|
68.31
|
82,709,227,393
|
0
|
0
|
||||||||||||
HKSCC Nominees Limited2
|
H Share
|
20.97
|
25,387,409,005
|
(3,251,433
|
)
|
Unknown
|
|||||||||||
中國證券金融股份有限公司
|
A Share
|
2.16
|
2,609,312,057
|
0
|
0
|
||||||||||||
國新投資有限公司
|
A Share
|
1.03
|
1,252,427,354
|
(750,400
|
)
|
0
|
|||||||||||
北京誠通金控投資有限公司
|
A Share
|
0.86
|
1,038,859,102
|
91,254,848
|
0
|
||||||||||||
香港中央結算有限公司
|
A Share
|
0.47
|
571,844,320
|
(449,937,840
|
)
|
0
|
|||||||||||
中央匯金資產管理有限 責任公司
|
A Share
|
0.27
|
322,037,900
|
0
|
0
|
||||||||||||
中國人壽保險股份有限公司 - 分紅 - 個人分紅 -005L-FH002滬
|
A Share
|
0.17
|
209,777,480
|
27,819,820
|
0
|
||||||||||||
中國人壽保險股份有限公司 - 傳統 - 普通保險產品 -005L-CT001滬
|
A Share
|
0.14
|
171,333,093
|
21,596,954
|
0
|
||||||||||||
匯添富基金管理股份有限公司 - 社保基金1103組合
|
A Share
|
0.09
|
110,000,000
|
110,000,000
|
0
|
Note 1 |
As compared with the number of shares held as of 31 December 2018.
|
Note 2: |
Sinopec Century Bright Capital Investment Limited, an overseas wholly-owned subsidiary of China Petrochemical Corporation, held 553,150,000 H shares, accounting for 0.46%
of the total issued share capital of Sinopec Corp. Those shareholdings are included in the total number of the shares held by HKSCC Nominees Limited.
|
(2) |
Information disclosed by the shareholders of H shares in accordance with the Securities and Futures Ordinance (SFO) as of 31 December 2019
|
Name of shareholders
|
Status of shareholders
|
Number of shares interested
|
% of Sinopec Corp.’s issued voting shares (H Share)
|
|
BlackRock, Inc.
|
Interest of corporation controlled by
|
2,019,237,567 (L)
|
7.91 (L)
|
|
the substantial shareholder
|
1,128,000 (S)
|
0.00 (S)
|
||
Citigroup Inc.
|
Interest of corporation controlled by
|
75,490,996 (L)
|
0.30 (L)
|
|
the substantial shareholder
|
51,630,422 (S)
|
0.20 (S)
|
||
Approved lending agent
|
2,547,370,819 (L)
|
9.98 (L)
|
||
GIC Private Limited
|
Investment manager
|
1,532,082,422 (L)
|
6.01 (L)
|
3 |
ISSUANCE AND LISTING OF SECURITIES
|
(1) |
Issuance of securities during the reporting period
|
(2) |
Existing employee shares
|
4 |
CHANGES IN THE CONTROLLING SHAREHOLDERS AND THE DE FACTO CONTROLLER
|
(1) |
Controlling shareholder
|
Name of Company
|
Number of Shares Held
|
Shareholding Percentage
|
||||||
Sinopec Engineering (Group) Co. Ltd
|
2,907,856,000
|
65.67
|
%
|
|||||
Sinopec Oilfield Service Corporation
|
10,727,896,364
|
56.51
|
%
|
|||||
Sinopec Oilfield Equipment Corporation
|
351,351,000
|
58.74
|
%
|
|||||
China Merchants Energy Shipping Co., Ltd
|
912,886,426
|
15.05
|
%
|
Note: |
China Petrochemical Corporation holds 2,595,786,987 H shares of Sinopec Oilfield Service Corporation (the “SSC”) through Sinopec Century Bright Capital Investment Ltd., a
wholly-owned overseas subsidiary of China Petrochemical Corporation, accounting for 13.67% of the total share capital of SSC. Such shareholdings are excluded from the total shares of SSC directly held by China Petrochemical Corporation
indicated above.
|
(2) |
Other than HKSCC Nominees Limited, there was no other legal person shareholder holding 10% or more of the total issued share capital of Sinopec Corp.
|
(3) |
Basic information of the de facto controller
|
(4) |
Diagram of the equity and controlling relationship between Sinopec Corp. and its de facto controller
|
China Petrochemical Corporation
|
|
68.77% *
|
|
Sinopec Corp.
|
*: |
Inclusive of 553,150,000 H shares held by Sinopec Century Bright Capital Investment Ltd. (overseas wholly-owned subsidiary of China Petrochemical Corporation) through
HKSCC Nominees Limited.
|
1 |
MARKET REVIEW
|
(1) |
Crude Oil & Natural Gas Market
|
(2) |
Refined Oil Products Market
|
(3) |
Chemical Products Market
|
2 |
PRODUCTION & OPERATIONS REVIEW
|
(1) |
Exploration and Production
|
2019
|
2018
|
2017
|
Change from
2018 to 2019(%)
|
|||||||||||||
Oil and gas production (mmboe)
|
458.92
|
451.46
|
448.79
|
1.7
|
||||||||||||
Crude oil production (mmbbls)
|
284.22
|
288.51
|
293.66
|
(1.5
|
)
|
|||||||||||
China
|
249.43
|
248.93
|
248.88
|
0.2
|
||||||||||||
Overseas
|
34.79
|
39.58
|
44.78
|
(12.1
|
)
|
|||||||||||
Natural gas production (bcf)
|
1,047.78
|
977.32
|
912.50
|
7.2
|
Crude oil reserves (mmbbls)
|
||||||||
Items
|
31 December 19
|
31 December 18
|
||||||
Proved reserves
|
1,741
|
1,666
|
||||||
Proved developed reserves
|
1,588
|
1,533
|
||||||
China
|
1,326
|
1,244
|
||||||
Consolidated subsidiaries
|
1,326
|
1,244
|
||||||
Shengli
|
982
|
910
|
||||||
Others
|
344
|
334
|
||||||
Overseas
|
262
|
289
|
||||||
Consolidated subsidiaries
|
17
|
27
|
||||||
Equity accounted entities
|
245
|
261
|
||||||
Proved undeveloped reserves
|
153
|
134
|
||||||
China
|
107
|
96
|
||||||
Consolidated subsidiaries
|
107
|
96
|
||||||
Shengli
|
12
|
16
|
||||||
Others
|
95
|
80
|
||||||
Overseas
|
46
|
38
|
||||||
Consolidated subsidiaries
|
0
|
0
|
||||||
Equity accounted entities
|
46
|
38
|
Natural gas reserves (bcf)
|
||||||||
Items
|
31 December 19
|
31 December 18
|
||||||
Proved reserves
|
7,225
|
6,807
|
||||||
Proved developed reserves
|
6,035
|
5,835
|
||||||
China
|
6,026
|
5,822
|
||||||
Consolidated subsidiaries
|
6,026
|
5,822
|
||||||
Puguang
|
1,814
|
1,904
|
||||||
Fuling
|
1,315
|
1,149
|
||||||
Others
|
2,897
|
2,769
|
||||||
Overseas
|
9
|
13
|
||||||
Consolidated subsidiaries
|
0
|
0
|
||||||
Equity accounted entities
|
9
|
13
|
||||||
Proved undeveloped reserves
|
1,190
|
972
|
||||||
China
|
1,190
|
972
|
||||||
Consolidated subsidiaries
|
1,190
|
972
|
||||||
Fuling
|
65
|
195
|
||||||
Others
|
1,125
|
777
|
Wells drilled (as of 31 December)
|
||||||||||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||||||||||
Exploratory
|
Development
|
Exploratory
|
Development
|
|||||||||||||||||||||||||||||
Productive
|
Dry
|
Productive
|
Dry
|
Productive
|
Dry
|
Productive
|
Dry
|
|||||||||||||||||||||||||
China
|
350
|
174
|
2,098
|
5
|
286
|
131
|
1,941
|
6
|
||||||||||||||||||||||||
Consolidated subsidiaries
|
350
|
174
|
2,098
|
5
|
286
|
131
|
1,941
|
6
|
||||||||||||||||||||||||
Shengli
|
195
|
81
|
1,168
|
4
|
149
|
71
|
1,201
|
5
|
||||||||||||||||||||||||
Others
|
155
|
93
|
930
|
1
|
137
|
60
|
740
|
1
|
||||||||||||||||||||||||
Overseas
|
3
|
1
|
99
|
0
|
0
|
0
|
70
|
0
|
||||||||||||||||||||||||
Consolidated subsidiaries
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||||||||
Equity accounted entities
|
3
|
1
|
99
|
0
|
0
|
0
|
70
|
0
|
||||||||||||||||||||||||
Total
|
353
|
175
|
2,197
|
5
|
286
|
131
|
2,011
|
6
|
Wells drilling (as of 31 December)
|
||||||||||||||||||||||||||||||||
2019
|
2018
|
|||||||||||||||||||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||||||||||||||||||
Exploratory
|
Development
|
Exploratory
|
Development
|
Exploratory
|
Development
|
Exploratory
|
Development
|
|||||||||||||||||||||||||
China
|
117
|
177
|
117
|
176
|
69
|
277
|
69
|
277
|
||||||||||||||||||||||||
Consolidated subsidiaries
|
117
|
177
|
117
|
176
|
69
|
277
|
69
|
277
|
||||||||||||||||||||||||
Shengli
|
60
|
20
|
60
|
20
|
25
|
72
|
25
|
72
|
||||||||||||||||||||||||
Others
|
57
|
157
|
57
|
156
|
44
|
205
|
44
|
205
|
||||||||||||||||||||||||
Overseas
|
0
|
0
|
0
|
0
|
0
|
10
|
0
|
10
|
||||||||||||||||||||||||
Consolidated subsidiaries
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||||||||
Equity accounted entities
|
0
|
0
|
0
|
0
|
0
|
10
|
0
|
10
|
||||||||||||||||||||||||
Total
|
117
|
177
|
117
|
176
|
69
|
287
|
69
|
287
|
Oil productive wells (as of 31 December)
|
||||||||||||||||
2019
|
2018
|
|||||||||||||||
Gross
|
Net
|
Gross
|
Net
|
|||||||||||||
China
|
52,112
|
52,112
|
51,030
|
51,030
|
||||||||||||
Consolidated subsidiaries
|
52,112
|
52,112
|
51,030
|
51,030
|
||||||||||||
Shengli
|
33,819
|
33,819
|
32,805
|
32,805
|
||||||||||||
Others
|
18,293
|
18,293
|
18,225
|
18,225
|
||||||||||||
Overseas
|
7,248
|
2,855
|
7,293
|
3,939
|
||||||||||||
Consolidated subsidiaries
|
28
|
14
|
28
|
14
|
||||||||||||
Equity accounted entities
|
7,220
|
2,841
|
7,265
|
3,925
|
||||||||||||
Total
|
59,360
|
54,967
|
58,323
|
54,969
|
Natural gas productive wells (as of 31 December)
|
||||||||||||||||
2019
|
2018
|
|||||||||||||||
Region
|
Gross
|
Net
|
Gross
|
Net
|
||||||||||||
China
|
6,420
|
6,378
|
5,068
|
5,028
|
||||||||||||
Consolidated subsidiaries
|
6,420
|
6,378
|
5,068
|
5,028
|
||||||||||||
Puguang
|
61
|
61
|
58
|
58
|
||||||||||||
Fuling
|
482
|
482
|
368
|
368
|
||||||||||||
Others
|
5,877
|
5,835
|
4,642
|
4,602
|
||||||||||||
Total
|
6,420
|
6,378
|
5,068
|
5,028
|
Area under license (as of 31 December)
|
||||||||
2019
|
2018
|
|||||||
Acreage with exploration licenses
|
472,017
|
525,269
|
||||||
China
|
472,017
|
525,269
|
||||||
Acreage with development licenses
|
38,697
|
36,748
|
||||||
China
|
33,467
|
31,643
|
||||||
Overseas
|
5,230
|
5,106
|
(2) |
Refining
|
Summary of Operations for the Refining Segment
|
Unit: million tonnes
|
2019
|
2018
|
2017
|
Change from
2018 to 2019 (%)
|
|||||||||||||
Refinery throughput
|
248.52
|
244.01
|
238.50
|
1.8
|
||||||||||||
Gasoline, diesel and kerosene production
|
159.99
|
154.79
|
150.67
|
3.4
|
||||||||||||
Gasoline
|
62.77
|
61.16
|
57.03
|
2.6
|
||||||||||||
Diesel
|
66.06
|
64.72
|
66.76
|
2.1
|
||||||||||||
Kerosene
|
31.16
|
28.91
|
26.88
|
7.8
|
||||||||||||
Light chemical feedstock production
|
39.78
|
38.52
|
38.60
|
3.3
|
||||||||||||
Light product yield (%)
|
76.38
|
76.00
|
75.85
|
0.38 percentage points
|
||||||||||||
Refinery yield (%)
|
94.98
|
94.93
|
94.88
|
0.05 percentage points
|
Note: |
Includes 100% of the production from domestic joint ventures.
|
(3) |
Marketing and Distribution
|
2019
|
2018
|
2017
|
Change from
2018 to 2019 (%)
|
|||||||||||||
Total sales volume of oil products (million tonnes)*
|
254.95
|
237.69
|
231.21
|
7.3
|
||||||||||||
Total domestic sales volume of oil products (million tonnes)
|
184.45
|
180.24
|
177.76
|
2.3
|
||||||||||||
Retail sales (million tonnes)
|
122.54
|
121.64
|
121.56
|
0.7
|
||||||||||||
Direct sales and distribution (million tonnes)
|
61.91
|
58.61
|
56.20
|
5.6
|
||||||||||||
Annual average throughput per station (tonne/station)
|
3,992
|
3,979
|
3,969
|
0.3
|
||||||||||||
31 December
|
31 December
|
31 December
|
Change from the end of the previous year to the end of the reporting period
|
|||||||||||||
2019
|
2018
|
2017
|
(%)
|
|||||||||||||
Total number of service stations under the Sinopec brand
|
30,702
|
30,661
|
30,633
|
0.1
|
||||||||||||
Number of company-operated stations
|
30,696
|
30,655
|
30,627
|
0.1
|
Note: |
The total sales volume of refined oil products includes the amount of refined oil marketing and trading sales volume.
|
(4) |
Chemicals
|
Summary of Operations for the Chemicals Segment
|
Unit: thousand tonnes
|
2019
|
2018
|
2017
|
Change from
2018 to 2019 (%)
|
|||||||||||||
Ethylene
|
12,493
|
11,512
|
11,610
|
8.5
|
||||||||||||
Synthetic resin
|
17,244
|
15,923
|
15,938
|
8.3
|
||||||||||||
Synthetic rubber
|
1,047
|
896
|
848
|
16.9
|
||||||||||||
Synthetic fiber monomer and polymer
|
10,029
|
9,343
|
9,439
|
7.3
|
||||||||||||
Synthetic fiber
|
1,289
|
1,218
|
1,220
|
5.8
|
Note: |
Includes 100% of the production of domestic joint ventures.
|
(5) |
Research and Development
|
(6) |
Health, Safety, Security and Environment
|
(7) |
Capital Expenditures
|
(1) |
Market Outlook
|
(2) |
Operations
|
1 |
CONSOLIDATED RESULTS OF OPERATIONS
|
Year ended 31 December
|
||||||||||||
2019
|
2018
|
Change (%)
|
||||||||||
RMB million
|
RMB million
|
|||||||||||
Turnover and other operating revenues
|
2,966,193
|
2,891,179
|
2.6
|
|||||||||
Turnover
|
2,900,488
|
2,825,613
|
2.6
|
|||||||||
Other operating revenues
|
65,705
|
65,566
|
0.2
|
|||||||||
Operating expenses
|
(2,879,995
|
)
|
(2,808,915
|
)
|
2.5
|
|||||||
Purchased crude oil, products and operating supplies and expenses
|
(2,380,907
|
)
|
(2,292,983
|
)
|
3.8
|
|||||||
Selling, general and administrative expenses
|
(55,313
|
)
|
(65,642
|
)
|
(15.7
|
)
|
||||||
Depreciation, depletion and amortization
|
(108,812
|
)
|
(109,967
|
)
|
(1.1
|
)
|
||||||
Exploration expenses, including dry holes
|
(10,510
|
)
|
(10,744
|
)
|
(2.2
|
)
|
||||||
Personnel expenses
|
(81,482
|
)
|
(77,721
|
)
|
4.8
|
|||||||
Taxes other than income tax
|
(242,535
|
)
|
(246,498
|
)
|
(1.6
|
)
|
||||||
Other operating expense, net
|
(436
|
)
|
(5,360
|
)
|
(91.9
|
)
|
||||||
Operating profit
|
86,198
|
82,264
|
4.8
|
|||||||||
Net finance costs
|
(9,967
|
)
|
1,001
|
—
|
||||||||
Investment income and share of profits less losses from associates and joint ventures
|
13,696
|
15,845
|
(13.6
|
)
|
||||||||
Profit before taxation
|
89,927
|
99,110
|
(9.3
|
)
|
||||||||
Income tax expense
|
(17,894
|
)
|
(20,213
|
)
|
(11.5
|
)
|
||||||
Profit for the year
|
72,033
|
78,897
|
(8.7
|
)
|
||||||||
Attributable to:
|
||||||||||||
Shareholders of the Company
|
57,465
|
61,618
|
(6.7
|
)
|
||||||||
Non-controlling interests
|
14,568
|
17,279
|
(15.7
|
)
|
(1) |
Turnover and other operating revenues
|
Average realised price
|
||||||||||||||||||||||||
Sales volume (thousand tonnes)
|
(RMB/tonne, RMB/thousand cubic meters
|
|||||||||||||||||||||||
Year ended 31 December
|
Year ended 31 December
|
|||||||||||||||||||||||
2019
|
2018
|
Change (%)
|
2019
|
2018
|
Change (%)
|
|||||||||||||||||||
Crude oil
|
6,034
|
6,595
|
(8.5
|
)
|
3,000
|
3,100
|
(3.2
|
)
|
||||||||||||||||
Natural gas (million cubic meters)
|
27,073
|
24,197
|
11.9
|
1,562
|
1,400
|
11.6
|
||||||||||||||||||
Gasoline
|
92,23
|
88,057
|
4.7
|
7,387
|
7,870
|
(6.1
|
)
|
|||||||||||||||||
Diesel
|
87,083
|
84,630
|
2.9
|
5,811
|
5,996
|
(3.1
|
)
|
|||||||||||||||||
Kerosene
|
27,041
|
25,787
|
4.9
|
4,298
|
4,562
|
(5.8
|
)
|
|||||||||||||||||
Basic chemical feedstock
|
41,022
|
40,520
|
1.2
|
4,578
|
5,488
|
(16.6
|
)
|
|||||||||||||||||
Monomer and polymer for synthetic fibre
|
14,019
|
11,127
|
26.0
|
5,714
|
6,971
|
(18.0
|
)
|
|||||||||||||||||
Synthetic resin
|
16,103
|
14,433
|
11.6
|
7,717
|
8,634
|
(10.6
|
)
|
|||||||||||||||||
Synthetic fibre
|
1,370
|
1,314
|
4.3
|
8,438
|
9,712
|
(13.1
|
)
|
|||||||||||||||||
Synthetic rubber
|
1,280
|
1,114
|
14.9
|
9,583
|
10,619
|
(9.8
|
)
|
|||||||||||||||||
Chemical fertilizer
|
924
|
794
|
16.4
|
2,110
|
2,096
|
0.7
|
(2) |
Operating expenses
|
(3) |
Operating profit was RMB 86.2 billion, representing an increase of 4.8% compared with 2018. That was mainly due to a significant
increase of profit in upstream business.
|
(4) |
Profit before taxation was RMB 89.9 billion, representing a decrease of 9.3% compared with 2018. That was mainly because the
margin of major refining products shrank.
|
(5) |
Income tax expense was RMB 17.9 billion, representing a decrease of 11.5% year on year.
|
(6) |
Profit attributable to non-controlling interests was RMB 14.6 billion, representing a decrease of RMB 2.7 billion compared with
2018.
|
(7) |
Profit attributable to shareholders of the Company was RMB 57.5 billion, representing a decrease of 6.7% year on year.
|
2 |
RESULTS OF SEGMENT OPERATIONS
|
Operating revenues
|
As a percentage of consolidated operating revenue before elimination of inter-segment sales
|
As a percentage of consolidated operating revenue after elimination of inter-segment sales
|
||||||||||||||||||||||
Year ended 31 December
|
Year ended 31 December
|
Year ended 31 December
|
||||||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|||||||||||||||||||
RMB million
|
RMB million
|
(%)
|
(%)
|
(%)
|
(%)
|
|||||||||||||||||||
Exploration and Production Segment
|
||||||||||||||||||||||||
External sales*
|
121,379
|
104,237
|
2.5
|
2.2
|
4.1
|
3.6
|
||||||||||||||||||
Inter-segment sales
|
89,315
|
95,954
|
1.8
|
2.0
|
||||||||||||||||||||
Operating revenues
|
210,712
|
200,191
|
4.3
|
4.2
|
||||||||||||||||||||
Refining Segment
|
||||||||||||||||||||||||
External sales*
|
147,138
|
154,319
|
3.0
|
3.2
|
5.0
|
5.3
|
||||||||||||||||||
Inter-segment sales
|
1,077,018
|
1,109,088
|
22.4
|
22.9
|
||||||||||||||||||||
Operating revenues
|
1,224,156
|
1,263,407
|
25.4
|
26.1
|
||||||||||||||||||||
Marketing and Distribution Segment
|
||||||||||||||||||||||||
External sales*
|
1,426,804
|
1,441,413
|
29.4
|
29.9
|
48.1
|
49.9
|
||||||||||||||||||
Inter-segment sales
|
4,159
|
5,224
|
0.1
|
0.1
|
||||||||||||||||||||
Operating revenues
|
1,430,963
|
1,446,637
|
29.5
|
30.0
|
||||||||||||||||||||
Chemicals Segment
|
||||||||||||||||||||||||
External sales*
|
440,369
|
472,898
|
9.1
|
9.8
|
14.8
|
16.4
|
||||||||||||||||||
Inter-segment sales
|
54,856
|
73,835
|
1.1
|
1.5
|
||||||||||||||||||||
Operating revenues
|
495,234
|
546,733
|
10.2
|
11.3
|
||||||||||||||||||||
Corporate and Others
|
||||||||||||||||||||||||
External sales*
|
830,485
|
718,312
|
17.1
|
14.9
|
28.0
|
24.8
|
||||||||||||||||||
Inter-segment sales
|
654,337
|
650,271
|
13.5
|
13.5
|
||||||||||||||||||||
Operating revenues
|
1,484,822
|
1,368,583
|
30.6
|
28.4
|
||||||||||||||||||||
Operating revenue before elimination of inter-segment sales
|
4,845,887
|
4,825,551
|
100.0
|
100.0
|
||||||||||||||||||||
Elimination of inter-segment sales
|
(1,879,694
|
)
|
(1,934,372
|
)
|
||||||||||||||||||||
Turnover and other operating revenues
|
2,966,193
|
2,891,179
|
100.0
|
100.0
|
*: |
Other operating revenues are included.
|
Year ended 31 December
|
||||||||||||
2019
|
2018
|
Change
|
||||||||||
RMB million
|
RMB million
|
(%)
|
||||||||||
Exploration and Production Segment
|
||||||||||||
Operating revenues
|
210,712
|
200,191
|
5.3
|
|||||||||
Operating expenses
|
201,428
|
210,298
|
(4.2
|
)
|
||||||||
Operating loss
|
9,284
|
(10,107
|
)
|
–
|
||||||||
Refining Segment
|
||||||||||||
Operating revenues
|
1,224,156
|
1,263,407
|
(3.1
|
)
|
||||||||
Operating expenses
|
1,193,524
|
1,208,580
|
(1.2
|
)
|
||||||||
Operating profit
|
30,632
|
54,827
|
(44.1
|
)
|
||||||||
Marketing and Distribution Segment
|
||||||||||||
Operating revenues
|
1,430,963
|
1,446,637
|
(1.1
|
)
|
||||||||
Operating expenses
|
1,401,856
|
1,423,173
|
(1.5
|
)
|
||||||||
Operating profit
|
29,107
|
23,464
|
24.0
|
|||||||||
Chemicals Segment
|
||||||||||||
Operating revenues
|
495,234
|
546,733
|
(9.4
|
)
|
||||||||
Operating expenses
|
478,083
|
519,726
|
(8.0
|
)
|
||||||||
Operating profit
|
17,151
|
27,007
|
(36.5
|
)
|
||||||||
Corporate and Others
|
||||||||||||
Operating revenues
|
1,484,822
|
1,368,583
|
8.5
|
|||||||||
Operating expenses
|
1,484,758
|
1,377,876
|
7.8
|
|||||||||
Operating loss
|
64
|
(9,293
|
)
|
—
|
||||||||
Elimination of inter-segment (loss)/profit
|
(40
|
)
|
(3,634
|
)
|
—
|
(1) |
Exploration and Production Segment
|
• |
Depreciation, depletion and amortisation decreased by RMB 9.6 billion year on year;
|
• |
Payment of land use right and community services expenses decreased by RMB 5.7 billion year on year;
|
• |
Impairment losses on long-lived assets decreased by RMB 4.3 billion year on year;
|
• |
Resource Tax and special oil income levy decreased by RMB 2.0 billion year on year;
|
• |
Procurement cost increased by RMB 10.6 billion year on year, as a result of expansion of LNG business scale;
|
• |
Personnel expenses increased by RMB 1.7 billion year on year.
|
(2) |
Refining Segment
|
Sales Volume (thousand tonnes)
|
Average realised price (RMB/tonne)
|
|||||||||||||||||||||||
Year ended 31 December
|
Year ended 31 December
|
|||||||||||||||||||||||
2019
|
2018
|
Change (%)
|
2019
|
2018
|
Change (%)
|
|||||||||||||||||||
Gasoline
|
60,750
|
59,746
|
1.7
|
7,057
|
7,386
|
(4.5
|
)
|
|||||||||||||||||
Diesel
|
63,509
|
62,676
|
1.3
|
5,477
|
5,766
|
(5.0
|
)
|
|||||||||||||||||
Kerosene
|
23,890
|
22,418
|
6.6
|
4,252
|
4,515
|
(5.8
|
)
|
|||||||||||||||||
Chemical feedstock
|
39,720
|
38,524
|
3.1
|
3,531
|
3,910
|
(9.7
|
)
|
|||||||||||||||||
Other refined petroleum products
|
61,890
|
61,439
|
0.7
|
3,237
|
3,312
|
(2.3
|
)
|
(3) |
Marketing and Distribution Segment
|
Sales Volume (Thousand tonnes)
|
Average realised price (RMB/tonne)
|
|||||||||||||||||||||||
Year ended 31 December
|
Year ended 31 December
|
|||||||||||||||||||||||
2019
|
2018
|
Change (%)
|
2019
|
2018
|
Change (%)
|
|||||||||||||||||||
Gasoline
|
92,261
|
88,076
|
4.8
|
7,387
|
7,870
|
(6.1
|
)
|
|||||||||||||||||
Retail
|
66,440
|
66,855
|
(0.6
|
)
|
7,968
|
8,296
|
(4.0
|
)
|
||||||||||||||||
Direct sales and wholesale
|
25,820
|
21,221
|
21.7
|
5,892
|
6,524
|
(9.7
|
)
|
|||||||||||||||||
Diesel
|
87,335
|
84,865
|
2.9
|
5,812
|
5,998
|
(3.1
|
)
|
|||||||||||||||||
Retail
|
43,503
|
43,327
|
0.4
|
6,227
|
6,435
|
(3.2
|
)
|
|||||||||||||||||
Direct sales and wholesale
|
43,832
|
41,537
|
5.5
|
5,399
|
5,541
|
(2.6
|
)
|
|||||||||||||||||
Kerosene
|
27,068
|
25,787
|
5.0
|
4,297
|
4,562
|
(5.8
|
)
|
|||||||||||||||||
Fuel
|
21,772
|
23,372
|
(6.8
|
)
|
3,072
|
2,974
|
3.3
|
(4) |
Chemicals Segment
|
Sales Volume (Thousand tonnes)
|
Average realised price (RMB/tonne)
|
|||||||||||||||||||||||
Year ended 31 December
|
Year ended 31 December
|
|||||||||||||||||||||||
2019
|
2018
|
Change (%)
|
2019
|
2018
|
Change (%)
|
|||||||||||||||||||
Basic organic chemicals
|
52,007
|
52,450
|
(0.8
|
)
|
4,518
|
5,281
|
(14.4
|
)
|
||||||||||||||||
Synthetic fibre monomer and polymer
|
14,089
|
11,252
|
25.2
|
5,722
|
6,978
|
(18.0
|
)
|
|||||||||||||||||
Synthetic resin
|
16,131
|
15,325
|
5.3
|
7,718
|
8,646
|
(10.7
|
)
|
|||||||||||||||||
Synthetic fibre
|
1,370
|
1,314
|
4.3
|
8,438
|
9,712
|
(13.1
|
)
|
|||||||||||||||||
Synthetic rubber
|
1,284
|
1,278
|
0.5
|
9,595
|
10,750
|
(10.7
|
)
|
|||||||||||||||||
Chemical fertiliser
|
925
|
796
|
16.2
|
2,109
|
2,093
|
0.8
|
(5) |
Corporate and Others
|
3 |
ASSETS, LIABILITIES, EQUITY AND CASH FLOWS
|
(1) |
Assets, liabilities and equity
|
As of
31 December
2019
|
As of
31 December
2018
|
Change
|
||||||||||
Total assets
|
1,755,071
|
1,592,308
|
162,763
|
|||||||||
Current assets
|
445,856
|
504,120
|
(58,264
|
)
|
||||||||
Non-current assets
|
1,309,215
|
1,088,188
|
221,027
|
|||||||||
Total liabilities
|
879,236
|
735,773
|
143,463
|
|||||||||
Current liabilities
|
576,374
|
565,098
|
11,276
|
|||||||||
Non-current liabilities
|
302,862
|
170,675
|
132,187
|
|||||||||
Total equity attributable to shareholders of the Company
|
738,150
|
717,284
|
20,866
|
|||||||||
Share capital
|
121,071
|
121,071
|
0
|
|||||||||
Reserves
|
617,079
|
596,213
|
20,866
|
|||||||||
Non-controlling interests
|
137,685
|
139,251
|
(1,566
|
)
|
||||||||
Total equity
|
875,835
|
856,535
|
19,300
|
(2) |
Cash Flow
|
Major items of cash flows
|
Year ended 31 December
|
|||||||
2019
|
2018
|
|||||||
Net cash generated from operating activities
|
153,420
|
175,868
|
||||||
Net cash used in investing activities
|
(120,463
|
)
|
(66,422
|
)
|
||||
Net cash used in financing activities
|
(84,713
|
)
|
(111,260
|
)
|
(3) |
Contingent Liabilities
|
(4) |
Capital Expenditures
|
(5) |
Research & development and environmental expenditures
|
(6) |
Measurement of fair values of derivatives and relevant system
|
Items relevant to measurement of main fair values
|
Unit: RMB million
|
Items
|
Beginning of the year
|
End of the year
|
Profits and losses from variation of fair values in the current year
|
Accumulated variation of fair values recorded as equity
|
Impairment loss provision of the current year
|
Funding source
|
||||||||||||||||||
Available for sale financial assets
|
25,732
|
3,319
|
215
|
0
|
0
|
Self-owned fund
|
||||||||||||||||||
Structured Deposit
|
25,550
|
3,318
|
187
|
0
|
0
|
Self-owned fund
|
||||||||||||||||||
Stock
|
182
|
1
|
28
|
0
|
0
|
Self-owned fund
|
||||||||||||||||||
Derivative financial instruments
|
1,584
|
48
|
(4,384
|
)
|
0
|
0
|
–
|
|||||||||||||||||
Cash flow hedges
|
(7,268
|
)
|
(1,940
|
)
|
(222
|
)
|
5,258
|
0
|
–
|
|||||||||||||||
Other equity instruments investment
|
1,450
|
1,521
|
0
|
(38
|
)
|
0
|
–
|
|||||||||||||||||
Total
|
21,498
|
2,948
|
(4,391
|
)
|
5,220
|
0
|
–
|
4 |
ANALYSIS OF FINANCIAL STATEMENTS PREPARED UNDER CASS
|
(1) |
Under CASs, the operating income and operating profit or loss by reportable segments were as follows:
|
Year ended 31 December
2019
|
2018
|
|||||||
Operating income
|
RMB million
|
RMB million
|
||||||
Exploration and Production Segment
|
210,712
|
200,191
|
||||||
Refining Segment
|
1,224,156
|
1,263,407
|
||||||
Marketing and Distribution Segment
|
1,430,963
|
1,446,637
|
||||||
Chemicals Segment
|
495,234
|
546,733
|
||||||
Corporate and Others
|
1,484,822
|
1,368,583
|
||||||
Elimination of inter-segment sales
|
(1,879,694
|
)
|
(1,934,372
|
)
|
||||
Consolidated operating income
|
2,966,193
|
2,891,179
|
||||||
Operating profit/(loss)
|
||||||||
Exploration and Production Segment
|
6,289
|
(11,557
|
)
|
|||||
Refining Segment
|
30,074
|
53,703
|
||||||
Marketing and Distribution Segment
|
29,781
|
24,106
|
||||||
Chemicals Segment
|
16,586
|
25,970
|
||||||
Corporate and Others
|
3,530
|
(8,151
|
)
|
|||||
Elimination of inter-segment sales
|
(40
|
)
|
(3,634
|
)
|
||||
Financial expenses, investment income, gains/(losses) from changes in fair value, asset disposal expense and other income
|
3,805
|
21,037
|
||||||
Consolidated operating profit
|
90,025
|
101,474
|
||||||
Net profit attributable to equity shareholders of the Company
|
57,591
|
63,089
|
(2) |
Financial data prepared under CASs
|
As of 31
|
As of 31
|
|||||||||||
December 2019
|
December 2018
|
Change
|
||||||||||
RMB million
|
RMB million
|
|||||||||||
Total assets
|
1,755,071
|
1,592,308
|
162,763
|
|||||||||
Non-current liabilities
|
301,792
|
169,551
|
132,241
|
|||||||||
Shareholders’ equity
|
876,905
|
857,659
|
19,246
|
(3) |
The results of the principal operations by segments
|
Segments
|
Operation income RMB million
|
Operation cost RMB million
|
Gross profit margin* (%)
|
Increase/ (decrease) of operation income on a year-on-year basis (%)
|
Increase/ (decrease) of operation cost on a year-on- year basis (%)
|
Increase/ (decrease) of gross profit margin on a year-on-year basis (%)
|
||||||||||||||||||
Exploration and Production
|
210,712
|
168,548
|
15.5
|
5.3
|
1.9
|
3.9
|
||||||||||||||||||
Refining
|
1,224,156
|
943,484
|
4.3
|
(3.1
|
)
|
(1.0
|
)
|
(2.1
|
)
|
|||||||||||||||
Marketing and Distribution
|
1,430,963
|
1,333,672
|
6.6
|
(1.1
|
)
|
(1.6
|
)
|
0.5
|
||||||||||||||||
Chemicals
|
495,234
|
453,951
|
8.0
|
(9.4
|
)
|
(7.9
|
)
|
(1.4
|
)
|
|||||||||||||||
Corporate and Others
|
1,484,822
|
1,468,851
|
1.1
|
8.5
|
7.6
|
0.9
|
||||||||||||||||||
Elimination of inter-segment sales
|
(1,879,694
|
)
|
(1,879,654
|
)
|
N/A
|
N/A
|
N/A
|
N/A
|
||||||||||||||||
Total
|
2,966,193
|
2,488,852
|
7.9
|
2.6
|
3.7
|
(0.5
|
)
|
*: |
Gross profit margin = (operation income – operation cost, tax and surcharges)/operation income.
|
5 |
THE CAUSE AND IMPACT OF THE CHANGE IN THE COMPANY’S ACCOUNTING POLICY
|
6 |
SIGNIFICANT CHANGES IN MAJOR ASSETS DURING THE REPORTING PERIOD
|
1 |
MAJOR PROJECTS
|
(1) |
Zhongke integrated refining and chemical project
|
(2) |
Zhenhai Refining & Chemical expansion project
|
(3) |
Hainan Refining and Chemical expansion project
|
(4) |
Wuhan de-bottleneck project
|
(5) |
Weirong shale gas project
|
(6) |
Xinqi pipeline project
|
(7) |
Erdos-Anping-Cangzhou gas pipeline project
|
(8) |
Wen 23 gas storage project
|
2 |
CORPORATE BONDS ISSUED AND INTEREST PAYMENTS
|
Bond name
|
Sinopec Corp.
2010 Corporate bond
|
Sinopec Corp.
2012 Corporate bond
|
Sinopec Corp
2015 Corporate bond (first issue)
|
|||||||||
Abbreviation
|
10石化02
|
12石化02
|
15石化02
|
|||||||||
Code
|
122052
|
122150
|
136040
|
|||||||||
Issuance date
|
21 May 2010
|
1 June 2012
|
19 November 2015
|
|||||||||
Maturity date
|
21 May 2020
|
1 June 2022
|
19 November 2020
|
|||||||||
Amount issued (RMB billion)
|
9
|
7
|
4
|
|||||||||
Outstanding balance (RMB billion)
|
9
|
7
|
4
|
|||||||||
Interest rate (%)
|
4.05
|
4.90
|
3.70
|
Principal and interest repayment
|
Simple interest is calculated and paid on an annual basis without compounding interests. The principal will be paid at maturity with last installment of interest.
|
Payment of interests
|
Sinopec Corp. had paid in full the interest accrued for the current period interest payment year.
|
Investor Qualification Arrangement
|
15石化02 was publicly offered to qualified investors in accordance with Administration of the Issuance
and Trading of Corporate Bonds.
|
Listing exchange
|
Shanghai Stock Exchange
|
Corporate bonds trustee
|
China International Capital Corporation Limited
27th-28th Floor, China World Office 2, 1 Jianguomenwai Avenue, Chaoyang District, Beijing
Huang Xu, Zhai Ying
(010) 6505 1166
|
Credit rating agency
|
United Credit Ratings Co., Ltd.
12th Floor, PICC building, No.2 Jianguomenwai Avenue, Chaoyang District, Beijing
|
Use of proceeds
|
Proceeds from the above-mentioned corporate bonds have been used for their designated purpose as disclosed. All the proceeds have been completely used.
|
Credit rating
|
During the reporting period, United Credit Ratings Co., Ltd. provided credit rating for 10石化02, 12石化02 and 15石化02 and reaffirmed AAA credit rating in the continuing credit rating report. The
long term credit rating of Sinopec Corp. remained AAA with its outlook being stable. Pursuant to relevant regulations, Sinopec Corp. has published latest credit rating results through media designated by regulators within six months
commencing from the end date of the reporting period. During the reporting period, there is no arrangement to credit addition mechanism and change of the repayment for the above-mentioned corporate bonds. Sinopec Corp. strictly followed
the provisions in the corporate bond prospectus to repay interests of the corporate bonds to bondholders.
|
Credit addition mechanism, repayment scheme and other relative events for corporate bonds during the reporting period
|
The guarantee of 10石化02 and 12石化02
is China Petrochemical Corporation. For more information of the guarantor, please refer to the annual report of corporate bonds which will be published in April 2020 on website of Shanghai Stock Exchange by China Petrochemical Corporation.
|
Convening of corporate bond holders’ meeting
|
During the reporting period, the bondholders’ meeting was not convened.
|
Performance of corporate bonds trustee
|
During the durations of the above-mentioned bonds, the bond trustee, China International Capital Corporation Limited, has strictly followed the Bond Trustee Management
Agreement and continuously tracked the Company’s credit status, utilisation of bond proceeds and repayment of principals and interests of the bond. The bond trustee has also advised the Company to fulfil obligations as described in the
corporate bond prospectus and exercised its duty to protect the bondholders’ legitimate rights and interests. The bond trustee will disclose the Trustee Management Affairs Report after the announcement of annual report. The full disclosure
is available on the website of Shanghai Stock Exchange (http://www.sse.com.cn).
|
Principal data
|
2019
|
2018
|
Change
|
Reasons for change
|
|||||||||
EBITDA (RMB million)
|
214,413
|
216,352
|
(1,939
|
)
|
Mainly due to the decrease of earnings compared with last year
|
||||||||
Current ratio
|
0.77
|
0.89
|
(0.12
|
)
|
Mainly due to the decrease of current asset
|
||||||||
Quick ratio
|
0.44
|
0.57
|
(0.13
|
)
|
Mainly due to the increase of inventories
|
||||||||
Liability-to-asset ratio (%)
|
50.04
|
46.14
|
3.9 percentage points
|
Due to the impact of New Lease Standard
|
|||||||||
EBITDA to total debt ratio
|
1.25
|
1.33
|
(0.08
|
)
|
Due to the decrease of EBITDA
|
||||||||
Interest coverage ratio
|
6.42
|
16.76
|
(10.34
|
)
|
Due to the impact of New Lease Standard
|
||||||||
Cash flow interest coverage ratio
|
29.07
|
35.92
|
(6.85
|
)
|
Due to the impact of New Lease Standard
|
||||||||
EBITDA-to-interest coverage ratio
|
12.92
|
33.93
|
(21.01
|
)
|
Due to the increase of interest expense as a result of New Lease Standard
|
||||||||
Loan repayment rate (%)
|
100
|
100
|
–
|
||||||||||
Interest payment rate (%)
|
100
|
100
|
–
|
3 |
SHARE OPTION INCENTIVE SCHEME OF SINOPEC CORP.’S SUBSIDIARY, SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED (SHANGHAI PETRO), DURING THE REPORTING
PERIOD
|
4 |
PERFORMANCE OF THE UNDERTAKINGS BY CHINA PETROCHEMICAL CORPORATION
|
Background
|
Type of Undertaking
|
Party
|
Contents
|
Term for performance
|
Whether bears deadline or not
|
Whether strictly performed or not
|
|||||||
Undertakings related to Initial Public Offerings (IPOs)
|
IPOs
|
China Petrochemical Corporation
|
1
|
Compliance with the connected transaction agreements;
|
From 22 June 2001
|
No
|
Yes
|
||||||
2
|
Solving the issues regarding the legality of land- use rights certificates and property ownership rights certificates within a specified period of time;
|
||||||||||||
3
|
Implementation of the Reorganisation Agreement (please refer to the definition of Reorganisation Agreement in the H share prospectus of Sinopec Corp.);
|
||||||||||||
4
|
Granting licenses for intellectual property rights;
|
||||||||||||
5
|
Avoiding competition within the same industry;
|
||||||||||||
6
|
Abandonment of business competition and conflicts of interest with Sinopec Corp.
|
||||||||||||
Other undertakings
|
Other
|
China Petrochemical Corporation
|
Given that China Petrochemical Corporation engages in the same or similar businesses as Sinopec Corp. with regard to the exploration and production of overseas petroleum and
natural gas, China Petrochemical Corporation hereby grants a 10-year option to Sinopec Corp. with the following provisions: (i) after a thorough analysis from political, economic and other perspectives, Sinopec Corp. is entitled to require
China Petrochemical Corporation to sell its overseas oil and gas assets owned as of the date of the undertaking and still in its possession upon Sinopec Corp.’s exercise of the option to Sinopec Corp.; (ii) in relation to the overseas oil
and gas assets acquired by China Petrochemical Corporation after the issuance of the undertaking, within 10 years of the completion of such acquisition, after a thorough analysis from political, economic and other perspectives, Sinopec
Corp. is entitled to require China Petrochemical Corporation to sell these assets to Sinopec Corp. China Petrochemical Corporation undertakes to transfer the assets as required by Sinopec Corp. under aforesaid items (i) and (ii) to Sinopec
Corp., provided that the exercise of such option complies with applicable laws and regulations, contractual obligations and other procedural requirements.
|
Within 10 years after 29 April 2014 or the date when China Petrochemical Corporation acquires the assets
|
Yes
|
Yes
|
5 |
CAPITAL INCREASE AND ASSETS TRANSFER TO SINOPEC-SK (WUHAN) PETROCHEMICAL CO., LTD. (SINOPEC-SK)
|
6 |
SIGNIFICANT EQUITY INVESTMENT
|
7 |
SIGNIFICANT ASSETS AND EQUITY SALE
|
8 |
MATERIAL GUARANTEE CONTRACTS AND THEIR PERFORMANCE
|
Guarantor
|
Relationship with the Company
|
Name of guaranteed company
|
Amount
|
Transaction date (date of signing)
|
Period of guarantee
|
Type
|
Whether completed or not
|
Whether overdue or not
|
Amount of overdue guarantee
|
Counter-guaranteed
|
Whether guaranteed for connected parties yes or no)*1
|
Sinopec Corp.
|
The listed company itself
|
Zhongtian Hechuang Energy Co., Ltd
|
10,140
|
25-May-16
|
25 May 2016 -31 December 2023 (the mature date is estimated)
|
Joint liability guarantee
|
No
|
No
|
–
|
No
|
Yes
|
|
|
|
|
|
|
|
|
|
|
|
|
Sinopec Corp.
|
The listed company itself
|
Zhong An United Coal Chemical Co., Ltd.
|
7,100
|
18-Apr-18
|
18 April 2018-31 December 2031
|
Joint liability guarantee
|
No
|
No
|
–
|
No
|
No
|
Total amount of guarantees provided during the reporting period*2
|
None
|
|
Total amount of guarantees outstanding at the end of reporting period*2 (A)
|
17,240
|
|
Guarantees by the Company to the controlled subsidiaries
|
||
Total amount of guarantee provided to controlled subsidiaries during the reporting period
|
None
|
|
Total amount of guarantee for controlled subsidiaries outstanding at the end of the reporting period (B)
|
12,157
|
|
Total amount of guarantees for the Company (including those provided for controlled subsidiaries)
|
||
Total amount of guarantees(A+B)
|
29,397
|
|
The proportion of the total amount of guarantees to the Sinopec Corp.’s net assets
|
3.98%
|
|
Guarantees provided for shareholder, de facto controller and its related parties (C)
|
None
|
|
Amount of debt guarantees provided directly or indirectly to the companies with liabilities to assets ratio over 70% (D)
|
None
|
|
The amount of guarantees in excess of 50% of the net assets (E)
|
None
|
|
Total amount of the above three guarantee items (C+D+E)
|
None
|
|
Statement of guarantee undue that might be involved in any joint and several liabilities
|
None
|
|
Statement of guarantee status
|
None
|
*1: |
As defined in the Rules Governing the Listing of Stocks on Shanghai Stock Exchange.
|
*2: |
The amount of guarantees provided during the reporting period and the outstanding balance of guarantees amount at the end of the reporting period include the guarantees
provided by the controlled subsidiaries to external parties. The amount of the guarantees provided by these subsidiaries is derived from multiplying the guarantees provided by Sinopec Corp.’s subsidiaries by the percentage of
shareholding of Sinopec Corp. in such subsidiaries.
|
9 |
SPECIFIC STATEMENTS AND INDEPENDENT OPINIONS FROM INDEPENDENT NON-EXECUTIVE DIRECTORS REGARDING EXTERNAL GUARANTEES PROVIDED BY THE COMPANY DURING AND BY THE END OF 2019:
|
10 |
SIGNIFICANT LITIGATION, ARBITRATION RELATING TO THE COMPANY
|
11 |
INSOLVENCY AND RESTRUCTURING
|
12 |
OTHER MATERIAL CONTRACTS
|
13 |
CREDIBILITY FOR THE COMPANY, CONTROLLING SHAREHOLDERS AND DE FACTO CONTROLLER
|
14 |
TRUSTEESHIP, CONTRACTING AND LEASES
|
15 |
DEPOSITS AT SINOPEC FINANCE CO., LTD. AND SINOPEC CENTURY BRIGHT CAPITAL INVESTMENT, LTD.
|
16 |
APPROPRIATION OF NON-OPERATIONAL FUNDS BY THE CONTROLLING SHAREHOLDER AND ITS RELATED PARTIES AND THE PROGRESS FOR CLEARING UP
|
17 |
STRUCTURED ENTITY CONTROLLED BY THE COMPANY
|
18 |
DETAILED IMPLEMENTATION OF THE SHARE INCENTIVE SCHEME DURING THE REPORTING PERIOD
|
19 |
ENVIRONMENTAL PROTECTION SOLUTIONS OF COMPANIES AND THEIR SUBSIDIARIES AS MAJOR POLLUTANT DISCHARGING COMPANIES RECOGNISED BY ENVIRONMENTAL PROTECTION
DEPARTMENTS
|
20 |
POVERTY ALLEVIATION PROGRAM LAUNCHED BY THE COMPANY
|
(1) |
Targeted Poverty Alleviation Plan
|
(2) |
Overview on 2019 Targeted Poverty Alleviations
|
(3) |
2019 Targeted Poverty Alleviation Work Statistics
|
Index
|
Data
|
||||
I.
|
Overview
|
||||
1.
|
Funds
|
187.44
|
|||
2.
|
Value of goods and materials
|
1.76
|
|||
3.
|
Number of people lifted out of poverty
|
31,003
|
|||
II.
|
Input breakdowns
|
||||
1.
|
Poverty elimination through industrial development
|
||||
1.1
|
Categories of poverty alleviation programs through industrial development
|
☑
|
Poverty alleviation through agriculture and forestry development
|
||
☑
|
Poverty alleviation through tourism development
|
||||
☑
|
Poverty alleviation through e-commerce
|
||||
☑
|
Poverty alleviation through assets income
|
||||
◻
|
Poverty alleviation through science and technology development
|
||||
☑
|
Others
|
||||
1.2
|
Number of poverty alleviation programs
|
274
|
|||
1.3
|
Input in poverty alleviation projects through industrial development
|
96.20
|
|||
1.4
|
Number of people lifted out of poverty
|
41,698
|
|||
2.
|
Poverty elimination through provision of employment
|
||||
2.1
|
Input in professional skill training
|
2.65
|
|||
2.2
|
Participants of professional skill trainings (person time)
|
3,015
|
|||
2.3
|
Number of people employed
|
10,990
|
|||
3.
|
Poverty elimination through relocation
|
||||
3.1
|
Number of relocated people provided with employment
|
243
|
|||
3.2
|
Input in relocation
|
4.35
|
|||
4.
|
Poverty elimination through education
|
||||
4.1
|
Input in students funding
|
2.19
|
|||
4.2
|
Number of students who received funding assistance
|
1,955
|
|||
4.3
|
Input in education resources in poverty-stricken areas
|
23.48
|
|||
5.
|
Poverty alleviation through healthcare
|
||||
5.1
|
Input in medical and health care resources in poverty-stricken areas
|
2.76
|
|||
6.
|
Poverty alleviation through ecological protection
|
||||
6.1
|
Items
|
☑
|
Conduct ecological protection and construction
|
||
◻
|
Develop ways for ecological protection and compensation
|
||||
☑
|
Set up ecological public welfare positions
|
||||
☑
|
Others
|
||||
6.2
|
Input in ecological protection
|
0.23
|
|||
7.
|
Guarantee basic living standard
|
||||
7.1
|
Input in left-behind children, women and senior people
|
0.59
|
|||
7.2
|
Number of left-behind children, women and senior people assisted
|
433
|
|||
7.3
|
Input in assisting the disabled
|
0.50
|
|||
7.4
|
Number of the disabled helped
|
141
|
|||
8.
|
Poverty alleviation through social projects
|
||||
8.1
|
Input in coordinated poverty alleviation
|
||||
8.2
|
Input in targeted poverty alleviation programs
|
123.59
|
|||
8.3
|
Public Welfare funds for poverty alleviation
|
0.60
|
|||
9.
|
Other projects
|
||||
9.1
|
Number of projects
|
137
|
|||
9.2
|
Total input
|
54.49
|
|||
9.3
|
Number of people lifted out of poverty
|
7,152
|
|||
9.4
|
Other
|
(4) |
Subsequent targeted poverty alleviation plan
|
21 |
OTHER EVENTS
|
1 |
AGREEMENTS CONCERNING CONTINUING CONNECTED TRANSACTIONS BETWEEN SINOPEC CORP. AND CHINA
PETROCHEMICAL CORPORATION
|
(1) |
The Company and China Petrochemical Corporation will mutually supply ancillary services for products, production and construction services (Mutual Supply Agreement)
|
(2) |
China Petrochemical Corporation
|
(3) |
China Petrochemical Corporation will provide cultural and educational, hygienic and auxiliary services to the Company (Cultural, Educational, Hygiene and Auxiliary
Services Agreement)
|
(4) |
China Petrochemical Corporation will provide leasing services for lands and certain properties to the Company
|
(5) |
China Petrochemical Corporation will provide comprehensive insurance to the Company
|
(6) |
China Petrochemical Corporation will provide shareholders’ loans to the Company; and
|
(7) |
The Company will provide franchise licenses for service stations to China Petrochemical Corporation.
|
2 |
COMPLIANCE OF DISCLOSURE AND APPROVALS OF CONTINUING CONNECTED TRANSACTIONS BETWEEN THE COMPANY AND SINOPEC GROUP WITH HONG KONG LISTING RULES AND THE
SHANGHAI LISTING RULES
|
3 |
ACTUAL CONTINUING CONNECTED TRANSACTIONS ENTERED INTO BY THE COMPANY DURING THE YEAR
|
(a) |
The government-prescribed price will apply;
|
(b) |
where there is no government-prescribed price but where there is a government-guidance price, the government-guidance price will apply;
|
(c) |
where there is neither a government-prescribed price nor a government-guidance price, the market price will apply; or
|
(d) |
where none of the above is applicable, the price for the provision of the products or services is to be agreed between the relevant parties, which shall be the reasonable
cost incurred in providing the same plus 6% or less of such cost.
|
(a) |
The transactions have been conducted in the ordinary course of the Company’s business;
|
(b) |
The transactions have been entered into based on either of the following terms:
|
i |
normal commercial terms; or
|
ii |
terms not less favorable than those available from or to independent third parties, where there is no available comparison to determine whether such terms are on normal
commercial terms; and
|
(c) |
The transactions were conducted pursuant to the terms of relevant agreements, and the terms were fair and reasonable and in the interests of Sinopec Corp. and its
shareholders as a whole.
|
4 |
OTHER SIGNIFICANT CONNECTED TRANSACTIONS OCCURRED THIS YEAR
|
5 |
FUNDS PROVIDED BETWEEN RELATED PARTIES
|
Funds to related parties
|
Funds from related parties
|
||||||||||||||||||||||||
Related Parties
|
Relations
|
Balance at the beginning of the year
|
Amount incurred
|
Balance at the end of the year
|
Balance at the beginning of the year
|
Amount incurred
|
Balance at the end of the year
|
||||||||||||||||||
Sinopec Group
|
Parent company and affiliated companies*
|
29,415
|
(18,648
|
)
|
10,767
|
30,232
|
(14,496
|
)
|
15,736
|
||||||||||||||||
Other related parties
|
Associates and joint ventures
|
1,431
|
307
|
1,738
|
333
|
59
|
392
|
||||||||||||||||||
Total
|
30,846
|
(18,341
|
)
|
12,505
|
30,565
|
(14,437
|
)
|
16,128
|
|||||||||||||||||
Reason for provision of funds between related parties
|
Loans and other accounts receivable and payable
|
||||||||||||||||||||||||
Impacts on the Company
|
No material negative impact
|
*: |
affiliated companies include subsidiaries, associates and joint ventures.
|
1 |
IMPROVEMENTS IN CORPORATE GOVERNANCE DURING THE REPORTING PERIOD
|
2 |
GENERAL MEETINGS
|
3 |
EQUITY INTERESTS OF DIRECTORS, SUPERVISORS AND OTHER SENIOR MANAGEMENT
|
4 |
PERFORMANCE OF THE INDEPENDENT NON-EXECUTIVE DIRECTORS
|
5 |
COMPANY’S INDEPENDENCE FROM CONTROLLING SHAREHOLDER
|
6 |
COMPETITION BETWEEN SINOPEC CORP AND ITS CONTROLLING SHAREHOLDER
|
7 |
IMPROVEMENT AND IMPLEMENTATION OF THE INTERNAL CONTROL SYSTEM
|
8 |
SENIOR MANAGEMENT APPRAISAL AND INCENTIVE SCHEMES
|
9 |
CORPORATE GOVERNANCE REPORT (IN ACCORDANCE WITH HONG KONG LISTING RULES)
|
(1) |
Compliance with the Corporate Governance Code
|
A |
Board of Directors
|
A.1 |
Board of Directors
|
a. |
The Board is the decision-making
|
b. |
The meeting of the Board is held at least once a quarter. The Board will usually communicate the time and proposals of the Board meeting 14 days before convening of the
meeting. The relevant documents and materials for Board meetings are usually sent to each Director 10 days in advance. In 2019, Sinopec Corp. held four Board meetings. For details about each Director’s attendance at the Board meetings
and the general meetings, please refer to the section “Report of the Board of Directors” in this annual report.
|
c. |
Each Director of the Board can submit proposals to be included in the agenda of Board meetings, and each Director is entitled to request other related information.
|
d. |
The Board has reviewed and evaluated its performance in 2018 and is of the view that the Board made decisions in compliance with domestic and overseas regulatory
authorities’ requirements and the Company’s internal rules; that the Board have considered the suggestions from the Party organisation, Board of Supervisors and Management during its decision making process; and that the Board
safeguarded the rights and interests of Sinopec Corp. and its shareholders.
|
e. |
The Secretary to the Board assists the Directors in handling the daily work of the Board, continuously informs the Directors of any regulations, policies or other
requirements of domestic or overseas regulatory authorities in relation to corporate governance and ensures that the Directors comply with domestic and overseas laws and regulations when performing their duties and responsibilities.
Sinopec Corp. has purchased liability insurance for all Directors to minimise their risks that might incur from the performance of their duties.
|
A.2 |
Chairman and President
|
a. |
The Chairman of the Board is elected by a majority vote of all Directors, and the President is nominated and appointed by the Board. The main duties and responsibilities
of the Chairman and the President are clearly distinguished from each other, and the scope of their respective duties and responsibilities are set out in the Articles of Association. Mr. Zhang Yuzhuo serves as Chairman of the Board and
Mr. Ma Yongsheng serves as President of Sinopec Corp.
|
b. |
The Chairman of the Board places great emphasis on communication with the Independent Non-executive Directors. The Chairman independently held two meetings with the
Independent Non-executive Directors in respect of development strategy, corporate governance and operational management, etc. of the Company.
|
c. |
The Chairman encourages open and active discussions. Directors actively and deeply participated in the discussions of significant decisions made by the Board in the Board
meetings.
|
A.3 |
Board composition
|
a. |
For details of the composition of the Board of Directors, please refer to the section “Directors, Supervisors, Other Senior Management and Employees” of this annual
report.
|
b. |
Sinopec Corp. has received from each of the Independent Non-executive directors a letter of confirmation for 2019 regarding their compliance with relevant independence
requirements set out in Rule 3.13 of the Hong Kong Listing Rules. Sinopec Corp. considers that each of the Independent Non-executive Directors is independent.
|
A.4 |
Appointment, re-election and dismissal
|
a. |
During the reporting period, the Board of Directors has not nominated any new director according to the actual situation of Sinopec Corp., and no re-election and
dismissal of directors occurred. For details about the tenure of each director, please refer to the section “Directors, Supervisors, Other Senior Management and Employees”
|
b. |
All Directors of Sinopec Corp. have been elected at the general meeting of shareholders. The Board has no power to appoint temporary Directors.
|
c. |
Sinopec Corp. engages professional consultants to prepare detailed materials for newly elected Directors, to notify them of the regulations of each listing place of
Sinopec Corp. and to remind them of their rights, responsibilities and obligations as Directors.
|
A.5 |
Nomination Committee
|
a. |
The Board of Sinopec Corp. established Nomination Committee, consisting of Chairman of the Board, Mr. Zhang Yuzhuo, who serves as the Chairman, and Independent
Non-Executive Directors Mr. Tang Min and Mr. Ng, Kar Ling Johnny, who serve as members. The major responsibilities of Nomination Committee are to provide suggestion on Board’s size and composition, as well as the selecting standards,
procedures and candidates for directors and senior management. Procedures to Propose a Person for Election as a Director of Sinopec Corp. is published on the Sinopec Corp.’s website at http://www.sinopec. com/.
|
b. |
The Board establishes the Board Diversity Policy which stipulates that the members of the Board shall be nominated and appointed based on the skills and experience for
the overall optimum operation of the Board, while taking into account the targets and requirements of the board diversity. When deciding the composition of the Board, Sinopec Corp. shall consider several factors in relation to the
diversity of the Board, including but not limited to profession experience, skills, knowledge, length of service, regions, cultural and educational backgrounds, gender and age. Pursuant to Articles of Association, the term of each
session of the Directors of Sinopec Corp. is three years, and the consecutive term of office of an independent non-executive director cannot exceed six years, which help to ensure that the Board of Directors has a proper balance between
continuous experience and new thinking, and enhance the level of diversity. Sinopec Corp. focuses on the implementation of the Board Diversity Policy. The Directors come from different industries at home and abroad, and have rich work
experience. Professional backgrounds of Directors include petroleum and petrochemical, as well as economics, accounting and finance, which are conductive to scientific decision-making.
|
c. |
The members of the Nomination Committee can engage professions when performing its duties. Reasonable costs arising from such consultations are borne by Sinopec Corp. In
the meantime, the Nomination Committee has also appointed consultants member and can require such member to provide advice. The working expenses of the Remuneration Committee are included in the budget of Sinopec Corp.
|
A.6 |
Responsibility of Directors
|
a. |
All Non-executive Directors have the same duties and powers as the Executive Directors. In addition, the Independent Non-executive Directors are entitled to certain
specific powers. The Articles of Association and the Rules of Procedure of Board Meetings clearly prescribe the duties and powers of Directors, Non-executive Directors including Independent Non-executive Directors, which are published
on the Sinopec Corp.’s website at http://www.sinopec. com/
|
b. |
Each of the Directors was able to devote sufficient time and efforts to handling the matters of Sinopec Corp.
|
c. |
Each of the Directors confirmed that he has complied with the Model Code for Securities and Transactions by Directors of Listed Companies during the reporting period. In
addition, Sinopec Corp. formulated the Rules Governing Shares Held by Company Directors, Supervisors and Senior Managers and Changes in Shares and the Model Code of Securities Transactions by Company Employees to regulate the purchase
and sale of Sinopec Corp.’s securities by relevant personnel.
|
d. |
Sinopec Corp. organised and arranged training sessions for Directors and paid the relevant fees as well as making relevant records. The Directors actively participated in
the trainings and paid more attention on continuing professional development program to ensure that their contribution to the Board remains informed and relevant.
|
A.7 |
Provision of and access to information
|
a. |
The agenda and other reference documents for meetings of the Board and Board committees will be distributed prior to the meetings to give each Director sufficient time to
review the materials so that Directors can make informed decisions.
|
b. |
Each Director can obtain all related information in a comprehensive and timely manner. The Secretary to the Board is responsible for organising and preparing the
materials for the Board meetings, including preparation of explanations for each proposal to ensure fully understanding by the Directors. The Management is responsible for providing the Directors with necessary information and
materials. The Director may require the Management, or require, via the Management, relevant departments to provide necessary information or explanations. The Directors may seek advices from professional consultants when necessary.
|
B |
Remuneration and Appraisal Committee
|
a. |
Remuneration and Appraisal Committee (Remuneration Committee) consists of Independent Non-executive Director Mr. Fan Gang, who serves as the Chairman, and Executive
Director Mr. Ma Yongsheng and Independent Non-executive Director Mr. Ng, Kar Ling Johnny, who serve as the members of the Remuneration Committee. The Remuneration Committee is responsible for reviewing the implementation of the annual
remuneration plans for Directors, Supervisors and other senior Management as approved at the general meeting of the shareholders, and report to the Board.
|
b. |
The Remuneration Committee always consults the Chairman of the Board and the President about the remuneration plans for other Executive Directors. After the Remuneration
Committee’s review, it is of the view that all the Executive Directors of Sinopec Corp. have fulfilled the duty clauses in their service contracts in 2019.
|
c. |
The members of the Remuneration Committee can engage independent professionals when performing its duties. Reasonable costs arising from such consultations are borne by
Sinopec Corp. In the meantime, the Remuneration Committee has also appointed consultants member and can require such member to provide advices. The working expenses of the Remuneration Committee are included in the budget of Sinopec
Corp. According to the policies of Sinopec Corp., the senior Management and relevant departments of Sinopec Corp. must actively cooperate with the Remuneration Committee.
|
d. |
During the reporting period, the Remuneration Committee held one meeting (please refer to “Meetings held by the special committees of the Board” under the section of
“Report of the Board of Directors” in this annual report).
|
C |
Accountability and Auditing
|
C.1 |
Financial reporting
|
a. |
Directors are responsible for supervising the preparation of accounts for each fiscal period to ensure that the accounts truly and fairly reflect the condition of the
business, the performance and the cash flow of the Company during the period. The Board approved the Financial Report for 2019 and warranted that the annual report contained no false representations, no material omissions or misleading
statements and jointly and severally accepted full responsibility for the authenticity, accuracy and completeness of the content.
|
b. |
Sinopec Corp. provides Directors with information about the financial, production and operating data of the Company every month to ensure that the Directors can learn
about the latest developments of the Company in a timely manner.
|
c. |
Sinopec Corp. has adopted an internal control mechanism to ensure that the Management and relevant departments have provided the Board and the Audit Committee with
sufficient financial data and related explanations and materials.
|
d. |
The external auditors of Sinopec Corp. made a statement on their reporting responsibilities in the auditor’s report contained in the financial report.
|
C.2 |
Internal Control and Risk Management
|
a. |
Sinopec Corp. has formulated and implemented its internal control and risk management system. The Board as a decision-making body is responsible for evaluating and review
the effectiveness of its internal control and risk management. The Board and Audit Committee periodically (at least annually) receive reports of the Company regarding internal control and risk management information from the Management.
All major internal control and risk management issues are reported to the Board and Audit Committee. Sinopec Corp. has set up its internal control and risk management department and internal auditing departments, which are equipped with
sufficient staff, and these departments periodically (at least twice per year) report to the Audit Committee. The internal control and risk management system of the Company are designed to manage rather than eliminate all the risks of
the Company.
|
b. |
In terms of internal control, Sinopec Corp. adopted the internal control framework prescribed in the internationally accepted Committee of Sponsoring Organisations of the
Treadway Commission Report (COSO). Based upon the Articles of Association and the applicable management policies currently in effect, as well as in accordance with relevant domestic and overseas applicable regulations, Sinopec Corp.
formulated and continuously improves the Internal Control Manual to achieve internal control of all factors of internal environment, risk assessment, control activities, information and communication, and internal supervision. At the
same time, Sinopec Corp. has constantly supervised and evaluated its internal control, and conducted comprehensive and multi-level inspections including regular test, enterprise self-examination and auditing check, and included
headquarters, branches and subsidiaries into the scope of internal control evaluation, with an internal control evaluation report being produced. The Board annually reviews the internal control evaluation report. For detailed
information about the internal control during the reporting period, please refer to the report on internal control evaluation prepared by Sinopec Corp.
|
c. |
In terms of risk management, Sinopec Corp. adopted the enterprise risk management framework provided by COSO, and established its risk management policy and risk
management organisation system. The Company annually conducts risk evaluation to identify major and important risks and perform risk management duties. It has designed major and important risks tackling measures combined with its
internal control system and periodically monitor their implementation to ensure adequate care, monitor and tackling of major risks.
|
d. |
Based upon the review and evaluation of internal control and risk management of the reporting period, the Board is of the view that the internal control and risk
management of the Company are effective.
|
C.3 |
Audit Committee
|
a. |
The Board has established an Audit Committee. The Audit Committee consists of Independent Non-executive Director Mr. Ng, Kar Ling Johnny, who serves as the Chairman, and
Independent Non-executive Director Mr. Tang Min and Independent Non-executive Director Mr. Cai Hongbin, who serve as members. As verified, none of them has served as a partner or a former partner in our current auditing firm.
|
b. |
During the reporting period, the Audit Committee held four meetings (please refer to the “Meetings held by the special committees of the Board” under the section of
“Report of the Board of Directors” in this annual report). The review opinions were issued at each meeting and submitted to the Board. During the reporting period, the Board and the Audit Committee had no disagreement.
|
c. |
Audit Committee members can engage independent professionals when performing its duties. Reasonable costs arising from such consultations are borne by Sinopec Corp. In
the meantime, the Audit Committee has appointed consultants members and can request such member to provide advices. The working expenses of the Audit Committee are included in the budget of Sinopec Corp. In accordance with the policies
of Sinopec Corp., the Senior Management and relevant departments of Sinopec Corp. shall actively cooperate with the Audit Committee.
|
d. |
The Audit Committee has reviewed the adequacy and sufficiency of the resources for accounting and financial reporting and the qualifications and experience of the
relevant employees as well as the sufficiency of the training courses provided to relevant employees. Audit Committee is of the view that the Management has fulfilled the duties to establish an effective internal control system. The
Company established a whistle-blowing policy in its internal control system, providing several channels as online reporting, letter reporting, receipt of appeals and a complaint mailbox, etc. to employees to report behavior that
violates the internal control system of the Company. The Audit Committee has reviewed and approved such policy.
|
D |
Delegation of power by the Board
|
a. |
The Board and the Management have clear duties and responsibilities in written rules. The Articles of Association and the Rules of Procedure for the General Meetings of
Shareholders and the Rules of Procedure of the Board Meetings clearly set forth the scope of duties, powers and delegation of power of the Board and Management, which are published on the website of Sinopec Corp. at
http://www.sinopec.com/.
|
b. |
In addition to the Audit Committee, the Remuneration Committee and Nomination Committee, the Board had established the Strategy Committee and the Social Responsibility
Management Committee. The Strategy Committee is responsible for overseeing long-term development strategies and significant investment decisions of the Company. The 7th session of Strategy Committee consists of five directors, including
Chairman of the Board Mr. Zhang Yuzhuo, who serves as Chairman, as well as Executive Directors Mr. Ma Yongsheng, Mr. Ling Yiqun and Independent Non-executive Directors Mr. Fan Gang and Mr. Cai Hongbin, who serve as members. The Social
Responsibility Management is responsible for preparing policies, governance, strategies and plans for social responsibility management of the Company. The Social Responsibility Management Committee consists of three Directors, including
Chairman of the Board Mr. Zhang Yuzhuo, who serves as Chairman, Independent Non-executive Directors Mr. Tang Min and Mr. Fan Gang, who serve as members.
|
c. |
Each Board Committee is required to report its decisions and recommendations to the Board and has formulated its terms of references. The terms of reference of the Audit
Committee, the Remuneration Committee and the Nomination Committee are published on the website of Sinopec Corp. at http://www.sinopec.com/.
|
E |
Investor Relations
|
a. |
According to the actual situation of Sinopec Corp., as approved at the annual general meeting of shareholders for the year 2018, Sinopec Corp. amended the Articles of
Association. For more details, please refer to the announcement published in the China Securities Journal, the Shanghai Securities News and the Securities Times by Sinopec Corp. as well as on the website of Shanghai Stock Exchange on 10
May 2019 and the announcement published on the website of the Hong Kong Stock Exchange on 9 May 2019.
|
b. |
Sinopec Corp. pays high attention to investor relations. The team led by management conduct road shows every year to answer questions on subjects of concern to investors,
such as introduction of the development strategies and the production and business performance of the Company. Sinopec Corp. established a department responsible for communicating with investors. In compliance with regulatory
provisions, Sinopec Corp. enhanced communication with investors by holding meetings with institutional investors, setting up an investor hotline and communicating through internet platform.
|
c. |
During the reporting period, separate resolution was proposed for each substantially separate issue at the general meetings. All resolutions were voted by poll to ensure
the interests of all shareholders. Notices of the general meeting were dispatched to shareholders 45 days (excluding the date of the general meeting) in advance.
|
d. |
The Chairman of the Board hosted the annual general meeting for the year 2018. Some members of the Board of Directors and Board of Supervisors and senior Management
attended the meeting and communicated with the investors extensively.
|
e. |
According to relevant rules of Sinopec Corp., the Secretary to the Board is responsible for establishing an effective communication channel between Sinopec Corp. and its
shareholders, for setting up special departments to communicate with the shareholders and for passing the opinions and proposals of the shareholders to the Board and Management in a timely manner. Contact details of Sinopec Corp. can be
found on the Investor Center page on Sinopec Corp’s website.
|
F |
Company Secretary
|
a. |
The Hong Kong Stock Exchange recognised the Secretary to the Board as having the relevant qualifications as company Secretary. Nominated by the Chairman of the Board and
appointed by the Board, the Secretary to the Board is a Senior Management Officer of Sinopec Corp. and responsible for the Company and the Board. The Secretary gives opinions on corporate governance to the Board and arranges orientation
training and professional development for the Directors.
|
b. |
During the reporting period, the Secretary to the Board actively participated in career development training with more than 15 training hours.
|
G |
Shareholders’ rights
|
a. |
Shareholders who individually or collectively hold 10% of the total voting shares of Sinopec Corp. may request the Board in writing to convene the general meeting of
shareholders. If the Board fails to approve the request to convene the meeting according to the Rules of Procedure for General Meetings of Shareholders, the shareholders may convene and hold the meeting at their discretion according to
applicable laws, and reasonable expenses incurred will be borne by Sinopec Corp. These provisions are subject to the following conditions: the proposals at the general meeting of shareholders must fall within the responsibilities of the
general meeting of shareholders, with specific proposals and resolutions and in compliance with relevant laws, administrative regulations and the Articles of Association.
|
b. |
When Sinopec Corp. holds the general meeting of shareholders, shareholders who individually or collectively hold 3% of the total voting shares of Sinopec Corp. may
propose a supplemental proposal 10 days before the date of the general meeting.
|
c. |
The eligibility for attending the general meeting, the rights of shareholders, the resolutions at the meeting and the voting procedures are clearly stated in the notice
of the general meeting of Sinopec Corp. dispatched to the shareholders.
|
d. |
Sinopec Corp. established special organisation in charge of communication with shareholders and published relevant contact details to facilitate shareholders to make
enquiries pursuant to Articles of Association.
|
(2) |
Auditors
|
(3) |
Other information about Sinopec Corp.’s corporate governance
|
1 |
MEETINGS OF THE BOARD
|
(1) |
The 5th meeting of the seventh session of the Board was held by on site meeting and via video conference on 22 March 2019, whereby the proposals in relation to the
following matters were approved: (i) the Work Report of the Board for the year 2018, (ii) the business performance of 2018 and work plan of 2019,(iii) Financial results and business performance of the Company for the year 2018
(including A. provision for impairment for the year 2018; B. The connected transactions for the year 2018; C. Profit distribution plan for the year 2018; D. Audit costs for the year 2018; E. the report of Risk Assessment for Capital
Deposits at Finance Company and Century Bright Company,), (iv) 2018 Communication on Progress for Sustainable Development Report of Sinopec Corp., (v) Financial Statements of Sinopec Corp. for the year 2018, (vi) Annual Report and form
20F of the Company for the year 2018, (vii) Internal control assessment report of Sinopec Corp. for the year 2018, and the internal control manual (2019) (viii) Re-appointment of external auditors of Sinopec Corp. for the year of 2019
and to authorise the Board to determine their remunerations, (ix) the amendments to the articles of association of Sinopec Corp. (x) to authorize the Board to determine the interim profit distribution plan of Sinopec Corp. for the year
2019 (xi) Authorising the Board to determine the proposed plan for issuance of debt financing instrument(s) (xii) Granting to the Board a general mandate to issue new domestic shares and/or overseas-listed foreign shares of Sinopec
Corp., (xiii) Convening the annual general meeting of Sinopec Corp. for the year 2018 and to dispatch the notice of the annual general meeting.
|
(2) |
The 6th meeting of the seventh session of the Board was held by written resolution on 29 April 2019, whereby the proposals in relation to the following matters were
approved: (i)first quarterly results of Sinopec Corp. for the three months ended 31 March 2019 was approved at the meeting. (ii) the capital increase and assets transfer to Sinopec-SK.
|
(3) |
The 7th meeting of the seventh session of the Board was held by on site meeting and via video conference on 23 August 2019, whereby the proposals in relation to the
following matters were approved: (i) the report on the fulfillment of the key targets for the first half of the year 2019 and the work arrangements for the second half of the year 2019, (ii) Financial results and business performance of
the Company for the first half of the year 2019 (including a. the 2019 interim dividend distribution plan, b. the report of Risk Assessment for Capital Deposits at Finance Company and Century Bright Company), (iii) the financial
statements for the first half the year 2019, (iv) interim report for the 6 months ended 30 June 2019, (v) Three years rolling development plan of Sinopec Corp. (2019 to 2021).
|
(4) |
The 8th meeting of the seventh session of the Board was held by written resolution on 30 October 2019, whereby the proposal in relation to the third quarterly results of
Sinopec Corp. for the nine months ended 30 September 2019 was approved.
|
2 |
IMPLEMENTATION OF RESOLUTIONS APPROVED AT THE GENERAL MEETINGS OF SHAREHOLDERS BY THE BOARD
|
3 |
DIRECTORS’ ATTENDANCE TO THE BOARD MEETINGS AND TO THE GENERAL MEETINGS.
|
(1) |
Directors attendance to the board meeting and general meeting during this reporting period
|
Director Titles
|
Names
|
Board Meetings
|
General Meetings.
|
|||||||
No. of meeting held
|
Actual Attendance
|
Attended By communication
|
Attended by proxy
|
Absent
|
No. of meeting held
|
Actual Attendance
|
||||
Director
|
Ma Yongsheng
|
4
|
2
|
2
|
0
|
0
|
1
|
1
|
||
Director
|
Yu Baocai
|
4
|
2
|
2
|
0
|
0
|
1
|
1
|
||
Director
|
Ling Yiqun
|
4
|
2
|
2
|
0
|
0
|
1
|
0
|
||
Director
|
Li Yong
|
4
|
1
|
2
|
1
|
0
|
1
|
1
|
||
Independent Director
|
Tang Min
|
4
|
2
|
2
|
0
|
0
|
1
|
0
|
||
Independent Director
|
Fan Gang
|
4
|
2
|
2
|
0
|
0
|
1
|
0
|
||
Independent Director
|
Cai Hongbin
|
4
|
2
|
2
|
0
|
0
|
1
|
0
|
||
Independent Director
|
Ng, Kar Ling Johnny
|
4
|
2
|
2
|
0
|
0
|
1
|
0
|
(2) |
Former directors attendance to the board meetings during this reporting period
|
Director Titles
|
Names
|
Board Meetings
|
General Meetings.
|
|||||||
No. of meeting held
|
Actual Attendance
|
Attended By communication
|
Attended by proxy
|
Absent
|
No. of meeting held
|
Actual Attendance
|
||||
Former Chairman
|
Dai Houliang
|
4
|
2
|
2
|
0
|
0
|
1
|
1
|
||
Former Director
|
Li Yunpeng
|
4
|
2
|
2
|
0
|
0
|
1
|
0
|
||
Former Director
|
Liu Zhongyun
|
4
|
1
|
2
|
1
|
0
|
1
|
1
|
1. |
No directors were absent from two consecutive meetings of the Board.
|
2. |
Mr. Liu Zhongyun resigned as a director of the Board on 9 December 2019.
|
3. |
Mr. Dai Houliang resigned as the Chairman, director of the Board on 19 January 2020.
|
4. |
Mr. Li Yunpeng resigned as a director of the Board on 24 March 2020.
|
(3) |
The Independent Director’s attendance to the General Meetings.
|
4 |
MEETINGS HELD BY THE BOARD COMMITTEES
|
(1) |
The 4th meeting of the seventh session of the Audit Committee was held by on site meeting and via video conference on 20 March 2019, whereby the following matters were
approved in the meeting: (i) Annual Report and 20F of 2018 (ii)Financial results and business performance of the Company for the year 2018(including A. provision for impairment for the year 2018; B. The connected transactions for the
year 2018; C. Profit distribution plan for the year 2018; D. Audit costs for the year 2018; E. the report of Risk Assessment for Capital Deposits at Finance Company and Century Bright Company,); (iii) Internal control assessment report
of the Company for the year 2018 and the internal control manual (2019) (iv) Work report on the internal auditing work for the year 2018; (v) Reports on the auditing of the financial statements for the year 2018 prepared by the domestic
and overseas auditors.
|
(2) |
The 5th meeting of the seventh session of the Audit Committee was held by written resolution on 29 April 2019, whereby the proposals in relation to the following matters
were approved: (i)first quarterly results of Sinopec Corp. for the three months ended 31 March 2019 was approved at the meeting. (ii) the capital increase and assets transfer to SINOPEC-SK.
|
(3) |
The 6th meeting of the seventh session of the Audit Committee was held by on site meeting on 21 August 2019, whereby (i) the financial statements for the first half year
of 2019 (ii) the interim report for the first half of 2019,(iii) Financial results and business performance of the Company for the first half of the year 2019(including a. the 2019 interim dividend distribution plan, b. the report of
Risk Assessment for Capital Deposits at Finance Company and Century Bright Company) (iv) the reports on internal auditing work for the first half of 2019 were approved at the meeting.
|
(4) |
The 7th meeting of the seventh session of the Audit Committee was held by written resolution on 29 October 2019, whereby the third quarterly report for nine months ended
30 September 2019 was approved at the meeting.
|
(5) |
The 2nd meeting of the seventh session of the Strategy Committee was held by written resolution on 20 March 2019, whereby the proposal in relation to the plan of
investments of 2019 of Sinopec Corp. was approved at the meeting.
|
(6) |
The 3rd meeting of the seventh session of the Strategy Committee was held by written resolution on 21 August 2019, whereby the three years rolling development plan of
Sinopec corp. (2019-2021) was approved at the meeting.
|
(7) |
The 1st meeting of the seventh session of the Remuneration Committee was held by written resolution on 20 March 2019 whereby the proposal in relation to implementation of
the rules of the remuneration of directors, supervisors and other senior management for 2018.
|
(8) |
The 1st meeting of the seventh session of the Social Responsibility Management Committee was held by written resolution on 20 March 2019, whereby the 2018 Communication
on Progress for the Sustainable Development Report of Sinopec Corp. was approved at the meeting.
|
5 |
BOARD COMMITTEES ISSUED REVIEW OPINIONS TO THE BOARD WHEN PERFORMING THEIR DUTIES DURING THE REPORTING PERIOD, WITHOUT OBJECTION.
|
6 |
BUSINESS PERFORMANCE
|
7 |
DIVIDEND
|
2019
|
2018
|
2017
|
||||||||||
Cash dividends (RMB/Share, tax inclusive)
|
0.31
|
0.42
|
0.50
|
|||||||||
Total amount of cash dividends (RMB billion, tax inclusive)
|
37.53
|
50.85
|
60.54
|
|||||||||
Net profits attributed to the shareholders of the listed company shown in the consolidated statement for the dividend year (RMB billion)
|
57.47
|
61.62
|
51.12
|
|||||||||
Ratio between the dividends and the net profit attributed to the shareholders of the listed company in the consolidated statement (%)
|
65.31
|
82.52
|
118.42
|
8 |
RESPONSIBILITIES FOR THE COMPANY’S INTERNAL CONTROL
|
9 |
DURING THIS REPORTING PERIOD, THE IMPLEMENTATION OF ENVIRONMENTAL POLICIES BY THE COMPANY
|
10 |
DURING THIS REPORTING PERIOD, THE COMPANY DID NOT VIOLATE LAWS OR REGULATIONS WHICH HAVE A MATERIAL IMPACT ON THE COMPANY
|
11 |
MAJOR SUPPLIERS AND CUSTOMERS
|
12 |
BANK LOANS AND OTHER BORROWINGS
|
13 |
FIXED ASSETS
|
14 |
RESERVES
|
15 |
DONATIONS
|
16 |
PRE-EMPTIVE RIGHTS
|
17 |
REPURCHASE, SALES AND REDEMPTION OF SHARES
|
18 |
DIRECTORS’ INTERESTS IN COMPETING BUSINESS
|
19 |
DIRECTORS’ INTERESTS IN CONTRACTS
|
20 |
MANAGEMENT CONTRACTS
|
21 |
PERMITTED INDEMNITY PROVISIONS
|
22 |
EQUITY-LINKED AGREEMENTS
|
23 |
OIL & GAS RESERVE APPRAISAL PRINCIPLES
|
24 |
CORE COMPETITIVENESS ANALYSIS
|
25 |
RISK FACTORS
|
1 |
INTRODUCTION OF DIRECTORS, SUPERVISORS AND OTHER SENIOR MANAGEMENT
|
(1) |
Directors
|
Equity interests in Sinopec Corp. (as at 31 December)
|
||||||||||||||||||||||||
Name
|
Gender
|
Age
|
Position in Sinopec Corp.
|
Tenure
|
Remuneration paid by Sinopec Corp. in 2019 (RMB 1,000, before tax)
|
Whether paid by the holding Company
|
2019
|
2018
|
||||||||||||||||
Zhang Yuzhuo
|
Male
|
58
|
Chairman
|
2020.03-2021.05
|
–
|
No
|
0
|
0
|
||||||||||||||||
Ma Yongsheng
|
Male
|
58
|
Board Director, President
|
2016.02-2021.05
|
1,563.0
|
No
|
0
|
0
|
||||||||||||||||
Yu Baocai
|
Male
|
55
|
Board Director
|
2018.10-2021.05
|
–
|
Yes
|
0
|
0
|
||||||||||||||||
Ling Yiqun
|
Male
|
57
|
Board Director, Senior Vice President
|
2018.05-2021.05
|
–
|
Yes
|
13,000
|
13,000
|
||||||||||||||||
Li Yong
|
Male
|
56
|
Board Director
|
2018.05-2021.05
|
–
|
Yes
|
0
|
0
|
||||||||||||||||
Tang Min
|
Male
|
66
|
Independent Director
|
2015.05-2021.05
|
350.0
|
No
|
0
|
0
|
||||||||||||||||
Fan Gang
|
Male
|
66
|
Independent Director
|
2015.05-2021.05
|
350.0
|
No
|
0
|
0
|
||||||||||||||||
Cai Hongbin
|
Male
|
52
|
Independent Director
|
2018.05-2021.05
|
350.0
|
No
|
0
|
0
|
||||||||||||||||
Ng, Kar Ling Johnny
|
Male
|
59
|
Independent Director
|
2018.05-2021.05
|
350.0
|
No
|
0
|
0
|
Equity interests in Sinopec Corp. (as at 31 December)
|
||||||||||||||||||||||||
Name
|
Gender
|
Age
|
Position in Sinopec Corp.
|
Tenure
|
Remuneration paid by Sinopec Corp. in 2019 (RMB 1,000, before tax)
|
Whether paid by the holding Company
|
2019
|
2018
|
||||||||||||||||
Dai Houliang
|
Male
|
56
|
Former Chairman
|
2009.05-2020.01
|
–
|
Yes
|
0
|
0
|
||||||||||||||||
Li Yunpeng
|
Male
|
61
|
Former Director
|
2017.06-2020.03
|
–
|
Yes
|
0
|
0
|
||||||||||||||||
Liu Zhongyun
|
Male
|
56
|
Former Director and Senior Vice President
|
2018.05-2019.12
|
–
|
Yes
|
0
|
0
|
(2) |
Supervisors
|
Equity interests in Sinopec Corp. (as at 31 December)
|
||||||||||||||||||||||||
Name
|
Gender
|
Age
|
Position in Sinopec Corp.
|
Tenure
|
Remuneration paid by Sinopec Corp. in 2019 (RMB 1,000, before tax)
|
Whether paid by the holding Company
|
2019
|
2018
|
||||||||||||||||
Zhao Dong
|
Male
|
49
|
Chairman of the Board of Supervisors
|
2017.06-2021.05
|
–
|
Yes
|
0
|
0
|
||||||||||||||||
Jiang Zhenying
|
Male
|
55
|
Supervisor
|
2018.05-2021.05
|
1,321.6
|
No
|
0
|
0
|
||||||||||||||||
Yang Changjiang
|
Male
|
59
|
Supervisor
|
2018.05-2021.05
|
–
|
Yes
|
0
|
0
|
||||||||||||||||
Zhang Baolong
|
Male
|
60
|
Supervisor
|
2006.05-2021.05
|
–
|
Yes
|
0
|
0
|
||||||||||||||||
Zou Huiping
|
Male
|
59
|
Supervisor
|
2006.05-2021.05
|
1,445.7
|
No
|
0
|
0
|
||||||||||||||||
Yu Xizhi
|
Male
|
57
|
Employee’s Representative Supervisor
|
2017.06-2021.05
|
1,337.4
|
No
|
0
|
0
|
||||||||||||||||
Zhou Hengyou
|
Male
|
56
|
Employee’s Representative Supervisor
|
2018.05-2021.05
|
1,330.6
|
No
|
0
|
0
|
||||||||||||||||
Yu Renming
|
Male
|
56
|
Employee’s Representative Supervisor
|
2010.12-2021.05
|
1,346.5
|
No
|
0
|
0
|
(3) |
Other Members of Senior Management
|
Equity interests in Sinopec Corp. (as at 31 December)
|
||||||||||||||||||||
Name
|
Gender
|
Age
|
Position in Sinopec Corp.
|
Remuneration paid by Sinopec Corp. in 2019 (RMB 1,000, before tax)
|
Whether paid by the holding Company
|
2019
|
2018
|
|||||||||||||
Liu Hongbin
|
Male
|
57
|
Senior Vice President
|
–
|
Yes
|
0
|
0
|
|||||||||||||
Lei Dianwu
|
Male
|
57
|
Senior Vice President
|
1,592.8
|
No
|
0
|
0
|
|||||||||||||
Chen Ge
|
Male
|
57
|
Senior Vice President
|
1,600.4
|
No
|
0
|
0
|
|||||||||||||
Shou Donghua
|
Female
|
50
|
CFO
|
–
|
Yes
|
0
|
0
|
|||||||||||||
Zhao Rifeng
|
Male
|
57
|
Vice President
|
1,457.5
|
No
|
0
|
0
|
|||||||||||||
Huang Wensheng
|
Male
|
53
|
Vice President, Board Secretary
|
1,497.3
|
No
|
0
|
0
|
Equity interests in Sinopec Corp. (as at 31 December)
|
||||||||||||||||||||
Name
|
Gender
|
Age
|
Position in Sinopec Corp.
|
Remuneration paid by Sinopec Corp. in 2019 (RMB 1,000, before tax)
|
Whether paid by the holding Company
|
2019
|
2018
|
|||||||||||||
Wang Dehua
|
Male
|
53
|
Former CFO
|
1,487.0
|
No
|
0
|
0
|
2 |
INFORMATION ON APPOINTMENT OR TERMINATION OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
|
3 |
CHANGE OF SHAREHOLDING OF DIRECTORS, SUPERVISORS, AND THE SENIOR MANAGEMENT
|
4 |
CONTRACTUAL INTERESTS OF DIRECTORS AND SUPERVISORS
|
5 |
REMUNERATION OF DIRECTORS, SUPERVISORS, AND THE SENIOR MANAGEMENT
|
6 |
THE COMPANY’S EMPLOYEES
|
7 |
CHANGES OF CORE TECHNICAL TEAM OR KEY TECHNICIANS
|
8 |
EMPLOYEE BENEFITS SCHEME
|
9 |
REMUNERATION POLICY
|
10 |
TRAINING PROGRAMS
|
Name of Company
|
Registered Capital
RMB million
|
Percentage of shares held by Sinopec Corp.
(%)
|
Total Assets
RMB million
|
Net Assets
RMB million
|
Net Profit/(Net Loss)
RMB million
|
Principal Activities
|
|||||||||||||||
Sinopec International Petroleum Exploration and Production Limited
|
8,000
|
100
|
32,385
|
14,977
|
2,831
|
Investment in exploration, production and sale of petroleum and natural gas
|
|||||||||||||||
Sinopec Great Wall Energy & Chemical Company Limited
|
22,761
|
100
|
33,061
|
14,219
|
(795
|
)
|
Coal chemical industry investment management, production and sale of coal chemical products
|
||||||||||||||
Sinopec Yangzi Petrochemical Company Limited
|
15,651
|
100
|
30,763
|
19,985
|
1,609
|
Manufacturing of intermediate petrochemical products and petroleum products
|
|||||||||||||||
Sinopec Pipeline Storage & Transportation Company Limited
|
12,000
|
100
|
43,756
|
21,767
|
2,525
|
Pipeline storage and transportation of crude oil
|
|||||||||||||||
Sinopec Yizheng Chemical Fibre Limited Liability Company
|
4,000
|
100
|
8,372
|
5,468
|
4
|
Production and sale of polyester chips and polyester fibres
|
|||||||||||||||
Sinopec Lubricant Company Limited
|
3,374
|
100
|
9,219
|
4,091
|
478
|
Production and sale of refined petroleum products, lubricant base oil, and petrochemical materials
|
|||||||||||||||
Sinopec Qingdao Petrochemical Company Limited
|
1,595
|
100
|
4,226
|
519
|
29
|
Manufacturing of intermediate petrochemical products and petroleum products
|
|||||||||||||||
Sinopec Chemical Sales Company Limited
|
1,000
|
100
|
17,019
|
3,460
|
787
|
Marketing and distribution of petrochemical products
|
|||||||||||||||
China International United Petroleum and Chemical Company Limited
|
5,000
|
100
|
153,897
|
32,415
|
3,129
|
Trading of crude oil and petrochemical products
|
|||||||||||||||
Sinopec Overseas Investment Holding Limited
|
USD 1,662 million
|
100
|
20,985
|
12,552
|
(139
|
)
|
Overseas investment holding
|
||||||||||||||
Sinopec Catalyst Company Limited
|
1,500
|
100
|
10,417
|
5,129
|
763
|
Production and sale of catalyst products
|
|||||||||||||||
China Petrochemical International Company Limited
|
1,400
|
100
|
19,468
|
4,279
|
136
|
Trading of petrochemical products
|
|||||||||||||||
Sinopec Beihai Refining and Chemical Limited Liability Company
|
5,294
|
98.98
|
18,063
|
13,020
|
1,362
|
Import and processing of crude oil, production, storage and sale of petroleum products and petrochemical products
|
|||||||||||||||
Sinopec Qingdao Refining and Chemical Company Limited
|
5,000
|
85
|
18,951
|
10,285
|
1,070
|
Manufacturing of intermediate petrochemical products and petroleum products
|
|||||||||||||||
Sinopec Hainan Refining and Chemical Company Limited
|
9,628
|
75
|
30,426
|
17,914
|
1,961
|
Manufacturing of intermediate petrochemical products and petroleum products
|
|||||||||||||||
Sinopec Marketing Co., Limited
|
28,403
|
70.42
|
469,622
|
218,784
|
22,984
|
Marketing and distribution of refined petroleum products
|
|||||||||||||||
Sinopec Shanghai SECCO Petrochemical Company Limited
|
7,801
|
67.60
|
23,331
|
18,508
|
3,137
|
Production and sale of petrochemical products
|
|||||||||||||||
Sinopec-SK(Wuhan) Petrochemical Company Limited
|
7,193
|
59
|
26,904
|
11,860
|
664
|
Production, sale, research and development of petroleum, petrochemical, ethylene and downstream by-products
|
|||||||||||||||
Sinopec Kantons Holdings Limited
|
HKD 248 million
|
60.33
|
14,061
|
10,942
|
1,131
|
Oil jetty and nature gas pipeline
|
|||||||||||||||
Sinopec Shanghai Gaoqiao Petroleum and Chemical Limited
|
10,000
|
55
|
37,744
|
17,791
|
2,452
|
Manufacturing of intermediate petrochemical products and petroleum products
|
|||||||||||||||
Sinopec Shanghai Petrochemical Company Limited
|
10,824
|
50.44
|
45,636
|
30,016
|
2,225
|
Manufacturing of synthetic fibres, resin and plastics, intermediate petrochemical products and petroleum products
|
|||||||||||||||
Fujian Petrochemical Company Limited
|
8,140
|
50
|
13,346
|
11,854
|
477
|
Manufacturing of plastics, intermediate petrochemical products and petroleum products
|
Note 1: |
All above subsidiaries except Fujian Petrochemical Company Limited are audited by PricewaterhouseCoopers Zhong Tian LLP or PricewaterhouseCoopers in 2019. KPMG Huazhen
LLP served the exception.
|
Note 2: |
The above indicated total assets and net profit has been prepared in accordance with CASs. Except for Sinopec Kantons Holdings Limited and Sinopec Overseas Investment
Holdings Ltd, which are incorporated in Bermuda and Hong Kong SAR, respectively, all of the above wholly-owned and non-wholly-owned subsidiaries are incorporated in the PRC. All of the above wholly-owned and controlling subsidiaries are
limited liability companies except for Sinopec Shanghai Petrochemical Company Limited, Sinopec Marketing Co., Limited and Sinopec Kantons Holdings Limited. The Board of Directors considered that it would be redundant to disclose the
particulars of all subsidiaries and, therefore, only those which have material impact on the results or assets of Sinopec Corp. are set out above.
|
• |
the consolidated and company balance sheets as at 31 December 2019;
|
• |
the consolidated and company income statements for the year then ended;
|
• |
the consolidated and company cash flow statements for the year then ended;
|
• |
the consolidated and company statements of changes in shareholders’ equity for the year then ended; and
|
• |
notes to the financial statements.
|
• |
Evaluated and tested the key controls in respect of the preparation of the discounted cash flow projections of fixed assets relating to oil and gas producing activities.
|
• |
Assessed the methodology adopted in the discounted cash flow projections, tested mathematical accuracy of the projections, and the completeness, accuracy, and
relevance of underlying data used in the projections.
|
• |
Compared estimates of future crude oil prices adopted by the Group against a range of published crude oil price forecasts.
|
• |
Compared the future production profiles against the oil and gas reserve estimation report approved by the management. Evaluated the competence, capability and
objectivity of the management’s experts engaged in estimating the oil and gas reserves. Assessed key estimations or assumptions used in the reserve estimation, by reference to historical data, management plans and/or relevant external
data.
|
• |
Compared the future cost profiles against historical costs and relevant budgets of the Group.
|
• |
Tested selected other key data inputs, such as natural gas prices and production profiles in the projections by reference to historical data and/or relevant budgets of
the Group.
|
• |
Used professionals with specialized skill and knowledge to assist in the evaluation of the appropriateness of discount rates adopted by the management.
|
• |
Evaluated the sensitivity analyses prepared by the Group, and assessed the potential impacts of a range of possible outcomes.
|
• |
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
|
• |
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.
|
• |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
|
• |
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on Sinopec Corp.’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in these financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause Sinopec Corp. to cease to continue as a going concern.
|
• |
Evaluate the overall presentation (including the disclosures), structure and content of the financial statements, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
|
• |
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Sinopec Corp. to express an opinion on
the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
|
PricewaterhouseCoopers Zhong Tian LLP
|
Signing CPA Zhao Jianrong
|
Shanghai, the People’s Republic of China
|
(Engagement Partner)
|
27 March 2020
|
Signing CPA Gao Peng
|
(A) |
FINANCIAL STATEMENTS PREPARED UNDER CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES CONSOLIDATED BALANCE SHEET
|
Notes
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||||
Assets
|
|||||||||||
Current assets
|
|||||||||||
Cash at bank and on hand
|
5
|
127,927
|
167,015
|
||||||||
Financial assets held for trading
|
6
|
3,319
|
25,732
|
||||||||
Derivative financial assets
|
7
|
837
|
7,887
|
||||||||
Bills receivable
|
–
|
7,886
|
|||||||||
Accounts receivable
|
8
|
54,865
|
56,993
|
||||||||
Receivables financing
|
9
|
8,622
|
–
|
||||||||
Prepayments
|
10
|
5,066
|
5,937
|
||||||||
Other receivables
|
11
|
24,109
|
25,312
|
||||||||
Inventories
|
12
|
192,442
|
184,584
|
||||||||
Other current assets
|
28,669
|
22,774
|
|||||||||
Total current assets
|
445,856
|
504,120
|
|||||||||
Non-current assets
|
|||||||||||
Long-term equity investments
|
13
|
152,204
|
145,721
|
||||||||
Other equity instrument investments
|
1,521
|
1,450
|
|||||||||
Fixed assets
|
14
|
622,423
|
617,812
|
||||||||
Construction in progress
|
15
|
173,482
|
136,963
|
||||||||
Right-of-use assets
|
16
|
198,051
|
—
|
||||||||
Intangible assets
|
17
|
108,956
|
103,855
|
||||||||
Goodwill
|
18
|
8,697
|
8,676
|
||||||||
Long-term deferred expenses
|
19
|
8,930
|
15,659
|
||||||||
Deferred tax assets
|
20
|
17,616
|
21,694
|
||||||||
Other non-current assets
|
21
|
17,335
|
36,358
|
||||||||
Total non-current assets
|
1,309,215
|
1,088,188
|
|||||||||
Total assets
|
1,755,071
|
1,592,308
|
|||||||||
Liabilities and shareholders’ equity
|
|||||||||||
Current liabilities
|
|||||||||||
Short-term loans
|
23
|
31,196
|
44,692
|
||||||||
Derivative financial liabilities
|
7
|
2,729
|
13,571
|
||||||||
Bills payable
|
24
|
11,834
|
6,416
|
||||||||
Accounts payable
|
25
|
187,958
|
186,341
|
||||||||
Contract liabilities
|
26
|
126,735
|
124,793
|
||||||||
Employee benefits payable
|
27
|
4,769
|
7,312
|
||||||||
Taxes payable
|
28
|
69,339
|
87,060
|
||||||||
Other payables
|
29
|
72,324
|
77,463
|
||||||||
Non-current liabilities due within one year
|
30
|
69,490
|
17,450
|
||||||||
Total current liabilities
|
576,374
|
565,098
|
|||||||||
Non-current liabilities
|
|||||||||||
Long-term loans
|
31
|
39,625
|
61,576
|
||||||||
Debentures payable
|
32
|
19,157
|
31,951
|
||||||||
Lease liabilities
|
33
|
177,674
|
—
|
||||||||
Provisions
|
34
|
43,163
|
42,800
|
||||||||
Deferred tax liabilities
|
20
|
6,809
|
5,948
|
||||||||
Other non-current liabilities
|
35
|
15,364
|
27,276
|
||||||||
Total non-current liabilities
|
301,792
|
169,551
|
|||||||||
Total liabilities
|
878,166
|
734,649
|
|||||||||
Shareholders’ equity
|
|||||||||||
Share capital
|
36
|
121,071
|
121,071
|
||||||||
Capital reserve
|
37
|
122,127
|
119,192
|
||||||||
Other comprehensive income
|
38
|
(321
|
)
|
(6,774
|
)
|
||||||
Specific reserve
|
1,741
|
1,706
|
|||||||||
Surplus reserves
|
39
|
207,423
|
203,678
|
||||||||
Retained earnings
|
287,128
|
279,482
|
|||||||||
Total equity attributable to shareholders of the Company
|
739,169
|
718,355
|
|||||||||
Minority interests
|
137,736
|
139,304
|
|||||||||
Total shareholders’ equity
|
876,905
|
857,659
|
Zhang Yuzhuo
|
Ma Yongsheng
|
Shou Donghua
|
Chairman
|
President
|
Chief Financial Officer
|
Notes
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||||
Assets
|
|||||||||||
Current assets
|
|||||||||||
Cash at bank and on hand
|
54,072
|
82,879
|
|||||||||
Financial assets held for trading
|
–
|
22,500
|
|||||||||
Derivative financial assets
|
940
|
–
|
|||||||||
Bills receivable
|
–
|
156
|
|||||||||
Accounts receivable
|
8
|
21,544
|
29,989
|
||||||||
Receivables financing
|
207
|
–
|
|||||||||
Prepayments
|
10
|
2,665
|
2,488
|
||||||||
Other receivables
|
11
|
78,872
|
57,432
|
||||||||
Inventories
|
49,116
|
45,825
|
|||||||||
Other current assets
|
25,149
|
15,835
|
|||||||||
Total current assets
|
232,565
|
257,104
|
|||||||||
Non-current assets
|
|||||||||||
Long-term equity investments
|
13
|
304,687
|
289,207
|
||||||||
Other equity instrument investments
|
395
|
395
|
|||||||||
Fixed assets
|
14
|
291,547
|
302,082
|
||||||||
Construction in progress
|
15
|
60,493
|
51,598
|
||||||||
Right-of-use assets
|
16
|
112,832
|
—
|
||||||||
Intangible assets
|
8,809
|
8,571
|
|||||||||
Long-term deferred expenses
|
2,630
|
2,480
|
|||||||||
Deferred tax assets
|
7,315
|
11,021
|
|||||||||
Other non-current assets
|
2,490
|
9,145
|
|||||||||
Total non-current assets
|
791,198
|
674,499
|
|||||||||
Total assets
|
1,023,763
|
931,603
|
|||||||||
Liabilities and shareholders’ equity
|
|||||||||||
Current liabilities
|
|||||||||||
Short-term loans
|
19,919
|
3,961
|
|||||||||
Derivative financial liabilities
|
157
|
967
|
|||||||||
Bills payable
|
4,766
|
2,075
|
|||||||||
Accounts payable
|
75,352
|
82,343
|
|||||||||
Contract liabilities
|
5,112
|
4,230
|
|||||||||
Employee benefits payable
|
1,214
|
4,294
|
|||||||||
Taxes payable
|
43,025
|
54,764
|
|||||||||
Other payables
|
118,064
|
119,514
|
|||||||||
Non-current liabilities due within one year
|
59,596
|
16,729
|
|||||||||
Total current liabilities
|
327,205
|
288,877
|
|||||||||
Non-current liabilities
|
|||||||||||
Long-term loans
|
12,680
|
48,104
|
|||||||||
Debentures payable
|
7,000
|
20,000
|
|||||||||
Lease liabilities
|
107,783
|
—
|
|||||||||
Provisions
|
34,514
|
33,094
|
|||||||||
Other non-current liabilities
|
4,471
|
4,332
|
|||||||||
Total non-current liabilities
|
166,448
|
105,530
|
|||||||||
Total liabilities
|
493,653
|
394,407
|
|||||||||
Shareholders’ equity
|
|||||||||||
Share capital
|
121,071
|
121,071
|
|||||||||
Capital reserve
|
68,841
|
68,795
|
|||||||||
Other comprehensive income
|
1,181
|
(485
|
)
|
||||||||
Specific reserve
|
949
|
989
|
|||||||||
Surplus reserves
|
207,423
|
203,678
|
|||||||||
Retained earnings
|
130,645
|
143,148
|
|||||||||
Total shareholders’ equity
|
|||||||||||
Total liabilities and shareholders’ equity
|
530,110
|
537,196
|
Zhang Yuzhuo
|
Ma Yongsheng
|
Shou Donghua
|
Chairman
|
President
|
Chief Financial Officer
|
Notes
|
2019
RMB million
|
2018
RMB million
|
|||||||||
Operating income
|
40
|
2,966,193
|
2,891,179
|
||||||||
Less: Operating costs
|
40/43
|
2,488,852
|
2,401,012
|
||||||||
Taxes and surcharges
|
41
|
242,535
|
246,498
|
||||||||
Selling and distribution expenses
|
43
|
63,516
|
59,396
|
||||||||
General and administrative expenses
|
43
|
62,112
|
73,390
|
||||||||
Research and development expenses
|
43/44
|
9,395
|
7,956
|
||||||||
Financial expenses
|
42
|
9,967
|
(1,001
|
)
|
|||||||
Exploration expenses, including dry holes
|
43/45
|
10,510
|
10,744
|
||||||||
Add: Other income
|
46
|
5,973
|
6,694
|
||||||||
Investment income
|
47
|
12,628
|
11,428
|
||||||||
(Losses)/gains from changes in fair value
|
48
|
(3,511
|
)
|
2,656
|
|||||||
Credit impairment losses
|
(1,264
|
)
|
(141
|
)
|
|||||||
Impairment losses
|
49
|
(1,789
|
)
|
(11,605
|
)
|
||||||
Asset disposal losses
|
(1,318
|
)
|
(742
|
)
|
|||||||
Operating profit
|
90,025
|
101,474
|
|||||||||
Add: Non-operating income
|
50
|
2,598
|
2,070
|
||||||||
Less: Non-operating expenses
|
51
|
2,607
|
3,042
|
||||||||
Profit before taxation
|
90,016
|
100,502
|
|||||||||
Less: Income tax expense
|
52
|
17,894
|
20,213
|
||||||||
Net profit
|
72,122
|
80,289
|
|||||||||
Classification by going concern:
|
|||||||||||
Continuous operating net profit
|
72,122
|
80,289
|
|||||||||
Termination of net profit
|
–
|
–
|
|||||||||
Classification by ownership:
|
|||||||||||
Equity shareholders of the Company
|
57,591
|
63,089
|
|||||||||
Minority interests
|
14,531
|
17,200
|
|||||||||
Basic earnings per share
|
63
|
0.476
|
0.521
|
||||||||
Diluted earnings per share
|
63
|
0.476
|
0.521
|
||||||||
Other comprehensive income
|
38
|
||||||||||
Items that may not be reclassified subsequently to profit or loss
|
|||||||||||
Changes in fair value of other equity instrument investments
|
(31
|
)
|
(53
|
)
|
|||||||
Items that may be reclassified subsequently to profit or loss
|
|||||||||||
Other comprehensive income that can be converted into profit or loss under the equity method
|
(810
|
)
|
(229
|
)
|
|||||||
Cash flow hedges
|
4,941
|
(9,741
|
)
|
||||||||
Foreign currency translation differences
|
1,480
|
3,399
|
|||||||||
Total other comprehensive income
|
5,580
|
(6,624
|
)
|
||||||||
Total comprehensive income
|
77,702
|
73,665
|
|||||||||
Attributable to:
|
|||||||||||
Equity shareholders of the Company
|
63,006
|
55,471
|
|||||||||
Minority interests
|
14,696
|
18,194
|
Zhang Yuzhuo
|
Ma Yongsheng
|
Shou Donghua
|
Chairman
|
President
|
Chief Financial Officer
|
Notes
|
2019
RMB million
|
2018
RMB million
|
|||||||||
Operating income
|
40
|
1,021,272
|
1,058,493
|
||||||||
Less: Operating costs
|
40
|
799,566
|
812,355
|
||||||||
Taxes and surcharges
|
161,820
|
168,905
|
|||||||||
Selling and distribution expenses
|
3,420
|
3,078
|
|||||||||
General and administrative expenses
|
28,302
|
36,169
|
|||||||||
Research and development expenses
|
8,597
|
7,453
|
|||||||||
Financial expenses
|
7,628
|
1,029
|
|||||||||
Exploration expenses, including dry holes
|
9,417
|
9,796
|
|||||||||
Add: Other income
|
3,497
|
2,777
|
|||||||||
Investment income
|
47
|
28,062
|
28,336
|
||||||||
Losses from changes in fair value
|
(278
|
)
|
(20
|
)
|
|||||||
Credit impairment losses
|
132
|
(42
|
)
|
||||||||
Impairment losses
|
(534
|
)
|
(6,766
|
)
|
|||||||
Asset disposal gains
|
6,407
|
12
|
|||||||||
Operating profit
|
39,808
|
44,005
|
|||||||||
Add: Non-operating income
|
665
|
599
|
|||||||||
Less: Non-operating expenses
|
1,135
|
1,687
|
|||||||||
Profit before taxation
|
39,338
|
42,917
|
|||||||||
Less: Income tax expense
|
1,886
|
2,960
|
|||||||||
Net profit
|
37,452
|
39,957
|
|||||||||
Classification by going concern:
|
|||||||||||
Continuous operating net profit
|
37,452
|
39,957
|
|||||||||
Termination of net profit
|
–
|
–
|
|||||||||
Other comprehensive income
|
|||||||||||
Items that may be reclassified subsequently to profit or loss
|
|||||||||||
Other comprehensive income that can be converted into profit or loss under the equity method
|
201
|
(64
|
)
|
||||||||
Cash flow hedges
|
1,384
|
(617
|
)
|
||||||||
Total other comprehensive income
|
|||||||||||
Total comprehensive income
|
1,585
|
(681
|
)
|
Zhang Yuzhuo
|
Ma Yongsheng
|
Shou Donghua
|
Chairman
|
President
|
Chief Financial Officer
|
Notes |
2019
RMB million
|
2018
RMB million
|
|||||||
Cash flows from operating activities:
|
|||||||||
Refund of taxes and levies
|
2,027
|
1,681
|
|||||||
Other cash received relating to operating activities
|
98,327
|
90,625
|
|||||||
Sub-total of cash inflows
|
3,275,216
|
3,281,310
|
|||||||
Cash paid for goods and services
|
(2,598,630
|
)
|
(2,565,392
|
)
|
|||||
Cash paid to and for employees
|
(83,082
|
)
|
(77,048
|
)
|
|||||
Payments of taxes and levies
|
(315,668
|
)
|
(329,387
|
)
|
|||||
Other cash paid relating to operating activities
|
(124,416
|
)
|
(133,615
|
)
|
|||||
Sub-total of cash outflows
|
|||||||||
Net cash flow from operating activities
|
(3,121,796
|
)
|
(3,105,442
|
)
|
|||||
Cash flows from investing activities:
|
|||||||||
Cash received from disposal of investments
|
35,996
|
56,546
|
|||||||
Cash received from returns on investments
|
10,272
|
10,720
|
|||||||
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
|
703
|
9,666
|
|||||||
Other cash received relating to investing activities
|
97,804
|
87,696
|
|||||||
Net cash received from disposal of subsidiaries and other business entities
|
–
|
11
|
|||||||
Sub-total of cash inflows
|
144,775
|
164,639
|
|||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets
|
(141,142
|
)
|
(103,014
|
)
|
|||||
Cash paid for acquisition of investments
|
(16,334
|
)
|
(39,666
|
)
|
|||||
Other cash paid relating to investing activities
|
(106,731
|
)
|
(85,193
|
)
|
|||||
Net cash paid for the acquisition of subsidiaries and other business entities
|
(1,031
|
)
|
(3,188
|
)
|
|||||
Sub-total of cash outflows
|
|||||||||
Net cash flow from investing activities
|
(265,238
|
)
|
(231,061
|
)
|
|||||
Cash flows from financing activities:
|
|||||||||
Cash received from capital contributions
|
3,919
|
1,886
|
|||||||
Including: Cash received from minority shareholders’ capital contributions to subsidiaries
|
3,919
|
1,886
|
|||||||
Cash received from borrowings
|
599,866
|
746,655
|
|||||||
Other cash received relating to financing activities
|
320
|
190
|
|||||||
Sub-total of cash inflows
|
604,105
|
748,731
|
|||||||
Cash repayments of borrowings
|
(612,108
|
)
|
(772,072
|
)
|
|||||
Cash paid for dividends, profits distribution or interest
|
(59,523
|
)
|
(87,483
|
)
|
|||||
Including: Subsidiaries’ cash payments for distribution of dividends or profits to minority shareholders
|
(7,354
|
)
|
(13,700
|
)
|
|||||
Other cash paid relating to financing activities
|
54(d)
|
(17,187
|
)
|
(436
|
)
|
||||
Sub-total of cash outflows
|
|||||||||
Net cash flow from financing activities
|
(688,818
|
)
|
(859,991
|
)
|
|||||
Effects of changes in foreign exchange rate
|
147
|
518
|
Zhang Yuzhuo
|
Ma Yongsheng
|
Shou Donghua
|
Chairman
|
President
|
Chief Financial Officer
|
Notes
|
2019
RMB million
|
2018
RMB million
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Refund of taxes and levies
|
1,769
|
1,481
|
||||||||||
Other cash received relating to operating activities
|
6,239
|
19,380
|
||||||||||
Sub-total of cash inflows
|
1,170,878
|
1,249,677
|
||||||||||
Cash paid for goods and services
|
(842,996
|
)
|
(867,259
|
)
|
||||||||
Cash paid to and for employees
|
(45,524
|
)
|
(41,770
|
)
|
||||||||
Payments of taxes and levies
|
(209,863
|
)
|
(206,305
|
)
|
||||||||
Other cash paid relating to operating activities
|
(18,719
|
)
|
(26,211
|
)
|
||||||||
Sub-total of cash outflows
|
||||||||||||
Net cash flow from operating activities
|
(1,117,102
|
)
|
(1,141,545
|
)
|
||||||||
Cash flows from investing activities:
|
||||||||||||
Cash received from disposal of investments
|
23,584
|
65,930
|
||||||||||
Cash received from returns on investments
|
31,385
|
43,693
|
||||||||||
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
|
690
|
2,838
|
||||||||||
Other cash received relating to investing activities
|
42,037
|
28,724
|
||||||||||
Sub-total of cash inflows
|
97,696
|
141,185
|
||||||||||
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets
|
(64,100
|
)
|
(54,792
|
)
|
||||||||
Cash paid for acquisition of investments
|
(16,884
|
)
|
(40,169
|
)
|
||||||||
Other cash paid relating to investing activities
|
(53,138
|
)
|
(28,759
|
)
|
||||||||
Sub-total of cash outflows
|
(134,122
|
)
|
(123,720
|
)
|
||||||||
Net cash flow from investing activities
|
(36,426
|
)
|
17,465
|
|||||||||
Cash flows from financing activities:
|
||||||||||||
Cash received from borrowings
|
109,579
|
109,915
|
||||||||||
Other cash received relating to financing activities
|
91,865
|
–
|
||||||||||
Sub-total of cash inflows
|
201,444
|
109,915
|
||||||||||
Cash repayments of borrowings
|
(106,920
|
)
|
(176,757
|
)
|
||||||||
Cash paid for dividends or interest
|
(50,230
|
)
|
(71,944
|
)
|
||||||||
Other cash paid relating to financing activities
|
(104,780
|
)
|
–
|
|||||||||
Sub-total of cash outflows
|
(261,930
|
)
|
(248,701
|
)
|
||||||||
Net cash flow from financing activities
|
(60,486
|
)
|
(138,786
|
|||||||||
Net decrease in cash and cash equivalents
|
(43,136
|
)
|
Zhang Yuzhuo
|
Ma Yongsheng
|
Shou Donghua
|
Chairman
|
President
|
Chief Financial Officer
|
Share capital
RMB million
|
Capital reserve
RMB million
|
Other comprehensive income
RMB million
|
Specific reserve
RMB million
|
Surplus reserves
RMB million
|
Retained earnings
RMB million
|
Total shareholders’ equity attributable to equity shareholders of the Company
RMB million
|
Minority interests
RMB million
|
Total shareholders’ equity
RMB million
|
||||||||||||||||||||||||||||
Balance at 31 December 2017
|
121,071
|
119,557
|
(4,413
|
)
|
888
|
199,682
|
290,459
|
727,244
|
126,826
|
854,070
|
||||||||||||||||||||||||||
Change in accounting policy
|
–
|
–
|
(12
|
)
|
–
|
–
|
12
|
–
|
–
|
–
|
||||||||||||||||||||||||||
Balance at 1 January 2018
|
121,071
|
119,557
|
(4,425
|
)
|
888
|
199,682
|
290,471
|
727,244
|
126,826
|
854,070
|
||||||||||||||||||||||||||
Change for the year
|
||||||||||||||||||||||||||||||||||||
1. Net profit
|
–
|
–
|
–
|
–
|
–
|
63,089
|
63,089
|
17,200
|
80,289
|
|||||||||||||||||||||||||||
2. Other comprehensive income (Note 38)
|
–
|
–
|
(7,618
|
)
|
–
|
–
|
–
|
(7,618
|
)
|
994
|
(6,624
|
)
|
||||||||||||||||||||||||
Total comprehensive income
|
–
|
–
|
(7,618
|
)
|
–
|
–
|
63,089
|
55,471
|
18,194
|
73,665
|
||||||||||||||||||||||||||
Amounts transferred to initial carrying amount of hedged items
|
–
|
–
|
5,269
|
–
|
–
|
–
|
5,269
|
–
|
5,269
|
|||||||||||||||||||||||||||
Transactions with owners, recorded directly in shareholders’ equity:
|
||||||||||||||||||||||||||||||||||||
3. Appropriations of profits:
|
||||||||||||||||||||||||||||||||||||
– Appropriations for surplus reserves
|
–
|
–
|
–
|
–
|
3,996
|
(3,996
|
)
|
–
|
–
|
–
|
||||||||||||||||||||||||||
– Distributions to shareholders (Note 53)
|
–
|
–
|
–
|
–
|
–
|
(67,799
|
)
|
(67,799
|
)
|
–
|
(67,799
|
)
|
||||||||||||||||||||||||
4. Contributions to subsidiaries from minority interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
2,060
|
2,060
|
|||||||||||||||||||||||||||
5. Transaction with minority interests
|
–
|
(12
|
)
|
–
|
–
|
–
|
–
|
(12
|
)
|
(299
|
)
|
(311
|
)
|
|||||||||||||||||||||||
6. Distributions to minority interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
(7,476
|
)
|
(7,476
|
)
|
|||||||||||||||||||||||||
Total transactions with owners, recorded directly in shareholders’ equity
|
–
|
(12
|
)
|
–
|
–
|
3,996
|
(71,795
|
)
|
(67,811
|
)
|
(5,715
|
)
|
(73,526
|
)
|
||||||||||||||||||||||
7. Net increase in specific reserve for the year
|
–
|
–
|
–
|
818
|
–
|
–
|
818
|
91
|
909
|
|||||||||||||||||||||||||||
8. Others
|
–
|
(353
|
)
|
–
|
–
|
–
|
(2,283
|
)
|
(2,636
|
)
|
(92
|
)
|
(2,728
|
|||||||||||||||||||||||
Balance at 31 December 2018
|
121,071
|
119,192
|
(6,774
|
)
|
1,706
|
203,678
|
279,482
|
718,355
|
139,304
|
857,659
|
||||||||||||||||||||||||||
Balance at 1 January 2019
|
121,071
|
119,192
|
(6,774
|
)
|
1,706
|
203,678
|
279,482
|
718,355
|
139,304
|
857,659
|
||||||||||||||||||||||||||
Change for the year
|
||||||||||||||||||||||||||||||||||||
1. Net profit
|
–
|
–
|
–
|
–
|
–
|
57,591
|
57,591
|
14,531
|
72,122
|
|||||||||||||||||||||||||||
2. Other comprehensive income (Note 38)
|
–
|
–
|
5,415
|
–
|
–
|
–
|
5,415
|
165
|
5,580
|
|||||||||||||||||||||||||||
Total comprehensive income
|
–
|
–
|
5,415
|
–
|
–
|
57,591
|
63,006
|
14,696
|
77,702
|
|||||||||||||||||||||||||||
Amounts transferred to initial carrying amount of hedged items
|
–
|
–
|
1,038
|
–
|
–
|
–
|
1,038
|
55
|
1,093
|
|||||||||||||||||||||||||||
Transactions with owners, recorded directly in shareholders’ equity:
|
||||||||||||||||||||||||||||||||||||
3. Appropriations of profits:
|
||||||||||||||||||||||||||||||||||||
– Appropriations for surplus reserves
|
–
|
–
|
–
|
–
|
3,745
|
(3,745
|
)
|
–
|
–
|
–
|
||||||||||||||||||||||||||
– Distributions to shareholders (Note 53)
|
–
|
–
|
–
|
–
|
–
|
(46,008
|
)
|
(46,008
|
)
|
–
|
(46,008
|
)
|
||||||||||||||||||||||||
4. Contributions to subsidiaries from minority interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
5,495
|
5,495
|
|||||||||||||||||||||||||||
5. Transaction with minority interests
|
–
|
2,933
|
–
|
–
|
–
|
–
|
2,933
|
(2,933
|
)
|
–
|
||||||||||||||||||||||||||
6. Distributions to minority interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
(18,989
|
)
|
(18,989
|
)
|
|||||||||||||||||||||||||
Total transactions with owners, recorded directly in shareholders’ equity
|
–
|
2,933
|
–
|
–
|
3,745
|
(49,753
|
)
|
(43,075
|
)
|
(16,427
|
)
|
(59,502
|
)
|
|||||||||||||||||||||||
7. Net increase in specific reserve for the year
|
–
|
–
|
–
|
35
|
–
|
–
|
35
|
34
|
69
|
|||||||||||||||||||||||||||
8. Others
|
–
|
2
|
–
|
–
|
–
|
(192
|
)
|
(190
|
)
|
74
|
(116
|
)
|
||||||||||||||||||||||||
Balance at 31 December 2019
|
121,071
|
122,127
|
(321
|
)
|
1,741
|
207,423
|
287,128
|
739,169
|
137,736
|
876,905
|
Zhang Yuzhuo
|
Ma Yongsheng
|
Shou Donghua
|
Chairman
|
President
|
Chief Financial Officer
|
Share capital
RMB million
|
Capital reserve
RMB million
|
Other comprehensive income
RMB million
|
Specific reserve
RMB million
|
Surplus reserves
RMB million
|
Retained earnings RMB million
|
Total shareholders’ equity
RMB million
|
||||||||||||||||||||||
Balance at 31 December 2017
|
121,071
|
68,789
|
196
|
482
|
199,682
|
177,049
|
567,269
|
|||||||||||||||||||||
Change in accounting policy
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||||||||
Balance at 1 January 2018
|
121,071
|
68,789
|
196
|
482
|
199,682
|
177,049
|
567,269
|
|||||||||||||||||||||
Change for the year
|
||||||||||||||||||||||||||||
1. Net profit
|
–
|
–
|
–
|
–
|
–
|
39,957
|
39,957
|
|||||||||||||||||||||
2. Other comprehensive income
|
–
|
–
|
(681
|
)
|
–
|
–
|
–
|
(681
|
)
|
|||||||||||||||||||
Total comprehensive income
|
–
|
–
|
(681
|
)
|
–
|
–
|
39,957
|
39,276
|
||||||||||||||||||||
Transactions with owners, recorded directly in shareholders’ equity:
|
||||||||||||||||||||||||||||
3. Appropriations of profits:
|
||||||||||||||||||||||||||||
-Appropriations for surplus reserves
|
–
|
–
|
–
|
–
|
3,996
|
(3,996
|
)
|
–
|
||||||||||||||||||||
-Distributions to shareholders (Note 53)
|
–
|
–
|
–
|
–
|
–
|
(67,799
|
)
|
(67,799
|
)
|
|||||||||||||||||||
Total transactions with owners, recorded directly in shareholders’ equity
|
–
|
–
|
–
|
–
|
3,996
|
(71,795
|
)
|
(67,799
|
)
|
|||||||||||||||||||
4. Net increase in specific reserve for the year
|
–
|
–
|
–
|
507
|
–
|
–
|
507
|
|||||||||||||||||||||
5. Others
|
–
|
6
|
–
|
–
|
–
|
(2,063
|
)
|
(2,057
|
)
|
|||||||||||||||||||
Balance at 31 December 2018
|
121,071
|
68,795
|
(485
|
)
|
989
|
203,678
|
143,148
|
537,196
|
||||||||||||||||||||
Balance at 1 January 2019
|
121,071
|
68,795
|
(485
|
)
|
989
|
203,678
|
143,148
|
537,196
|
||||||||||||||||||||
Change for the year
|
||||||||||||||||||||||||||||
1. Net profit
|
–
|
–
|
–
|
–
|
–
|
37,452
|
37,452
|
|||||||||||||||||||||
2. Other comprehensive income
|
–
|
–
|
1,585
|
–
|
–
|
–
|
1,585
|
|||||||||||||||||||||
Total comprehensive income
|
–
|
–
|
1,585
|
–
|
–
|
37,452
|
39,037
|
|||||||||||||||||||||
Amounts transferred to initial carrying amount of hedged items
|
–
|
–
|
81
|
–
|
–
|
–
|
81
|
|||||||||||||||||||||
Transactions with owners, recorded directly in shareholders’ equity:
|
||||||||||||||||||||||||||||
3. Appropriations of profits:
|
||||||||||||||||||||||||||||
-Appropriations for surplus reserves
|
–
|
–
|
–
|
–
|
3,745
|
(3,745
|
)
|
–
|
||||||||||||||||||||
-Distributions to shareholders (Note 53)
|
–
|
–
|
–
|
–
|
–
|
(46,008
|
)
|
(46,008
|
)
|
|||||||||||||||||||
Total transactions with owners, recorded directly in shareholders’ equity
|
–
|
–
|
–
|
–
|
3,745
|
(49,753
|
)
|
(46,008
|
)
|
|||||||||||||||||||
4. Net increase in specific reserve for the year
|
–
|
–
|
–
|
(40
|
)
|
–
|
–
|
(40
|
)
|
|||||||||||||||||||
5. Others
|
–
|
46
|
–
|
–
|
–
|
(202
|
)
|
(156
|
)
|
|||||||||||||||||||
Balance at 31 December 2019 121,071
|
68,841
|
1,181
|
949
|
207,423
|
130,645
|
530,110
|
Zhang Yuzhuo
|
Ma Yongsheng
|
Shou Donghua
|
Chairman
|
President
|
Chief Financial Officer
|
1 |
STATUS OF THE COMPANY
|
2 |
BASIS OF PREPARATION
|
(1) |
Statement of compliance of China Accounting Standards for Business Enterprises (“CASs”)
|
(2) |
Accounting period
|
(3) |
Measurement basis
|
(4) |
Functional currency and presentation currency
|
3 |
SIGNIFICANT ACCOUNTING POLICIES
|
(1) |
Accounting treatment of business combination involving entities under common control and not under common control
|
(a) |
Business combination involving entities under common control
|
(b) |
Business combination involving entities not under common control
|
(c) |
Method for preparation of consolidated financial statements
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(1) |
Accounting treatment of business combination involving entities under common control and not under common control (Continued)
|
(c) |
Method for preparation of consolidated financial statements (Continued)
|
(2) |
Transactions in foreign currencies and translation of financial statements in foreign currencies
|
(3) |
Cash and cash equivalents
|
(4) |
Inventories
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(4) |
Inventories (Continued)
|
(5) |
Long-term equity investments
|
(a) |
Investment in subsidiaries
|
(b) |
Investment in joint ventures and associates
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(5) |
Long-term equity investments (Continued)
|
(b) |
Investment in joint ventures and associates (Continued)
|
(c) |
The impairment assessment method and provision accrual on investment
|
(6) |
Leases
|
(a) |
As Lessee
|
(b) |
As Lessor
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(7) |
Fixed assets and construction in progress
|
Estimated useful life
|
Estimated rate of residual value
|
||||
Plants and buildings
|
12-50 years
|
3
|
%
|
||
Equipment, machinery and others
|
4-30 years
|
3
|
%
|
(8) |
Oil and gas properties
|
(9) |
Intangible assets
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(10) |
Goodwill
|
(11) |
Financial Instruments
|
(a) |
Financial assets
|
(i) |
Classification and measurement
|
– |
Measured at amortised cost:
|
– |
Measured at fair value through other comprehensive income:
|
(ii) |
Impairment
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(11) |
Financial Instruments (Continued)
|
(a) |
Financial assets (Continued)
|
(ii) |
Impairment (Continued)
|
(iii) |
Derecognition
|
(b) |
Financial liabilities
|
(c) |
Determination of fair value
|
(d) |
Derivative financial instruments and hedge accounting
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(11) |
Financial Instruments (Continued)
|
(d) |
Derivative financial instruments and hedge accounting (Continued)
|
(1) |
There is an economic relationship between the hedged item and the hedging instrument, which share a risk and that gives rise to opposite changes in fair value that tend
to offset each other.
|
(2) |
The effect of credit risk does not dominate the value changes that result from that economic relationship.
|
(3) |
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the
hedging instrument that the entity actually uses to hedge that quantity of hedged item. However, that designation shall not reflect an imbalance between the weightings of the hedged item and the hedging instrument.
|
– |
Cash flow hedges
|
– |
The cumulative gain or loss on the hedging instrument from inception of the hedge;
|
– |
The cumulative change in present value of the expected future cash flows on the hedged item from inception of the hedge.
|
(12) |
Impairment of other non-financial long-term assets
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(12) |
Impairment of other non-financial long-term assets (Continued)
|
(13) |
Long-term deferred expenses
|
(14) |
Employee benefits
|
(a) |
Short term compensation
|
(b) |
Post-employment benefits
|
(c) |
Termination benefits
|
(15) |
Income tax
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(15) |
Income tax (Continued)
|
– |
the taxable entity has a legally enforceable right to offset current tax assets and current tax liabilities; and
|
– |
they relate to income taxes levied by the same tax authority on either:
|
(16) |
Provisions
|
(17) |
Revenue recognition
|
(18) |
Government grants
|
(19) |
Borrowing costs
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(20) |
Repairs and maintenance expenses
|
(21) |
Environmental expenditures
|
(22) |
Research and development costs
|
(23) |
Dividends
|
(24) |
Related parties
|
(a) |
the holding company of the Company;
|
(b) |
the subsidiaries of the Company;
|
(c) |
the parties that are subject to common control with the Company;
|
(d) |
investors that have joint control or exercise significant influence over the Group;
|
(e) |
enterprises or individuals if a party has control, joint control over both the enterprises or individuals and the Group;
|
(f) |
joint ventures of the Group, including subsidiaries of the joint ventures;
|
(g) |
associates of the Group, including subsidiaries of the associates;
|
(h) |
principle individual investors of the Group and close family members of such individuals;
|
(i) |
key management personnel of the Group, and close family members of such individuals;
|
(j) |
key management personnel of the Company’s holding company;
|
(k) |
close family members of key management personnel of the Company’s holding company; and
|
(l) |
an entity which is under control, joint control of principle individual investor, key management personnel or close family members of such individuals.
|
(25) |
Segment reporting
|
• |
engage in business activities from which it may earn revenues and incur expenses;
|
• |
whose operating results are regularly reviewed by the Group’s management to make decisions about resource to be allocated to the segment and assess its performance; and
|
• |
for which financial information regarding financial position, results of operations and cash flows are available.
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(26) |
Changes in significant accounting policies
|
(a) |
Lease
|
(i) |
For operating lease contracts that already exist before the first implementation of the new lease standard, the Group and the Company apply different methods based on the
remaining lease period:
|
Affected amount on January 1 2019
(RMB million)
|
||||||||
The affected financial statement line item
|
The Group
|
The Company
|
||||||
Right-of-use assets
|
207,455
|
119,776
|
||||||
Lease liabilities
|
184,670
|
112,322
|
||||||
Current portion of non-current liabilities
|
13,894
|
7,454
|
||||||
Long-term deferred expenses
|
(8,125
|
)
|
–
|
|||||
Prepayments
|
(766
|
)
|
–
|
(ii) |
On 1 January 2019, the Group reconciled the unpaid minimum operating lease payment that disclosed under the original lease standard to the lease liabilities recognised
under the new lease standard as follows:
|
The Group
(RMB million)
|
||||
The minimum future operating lease payments disclosed on 31 December 2018
|
352,794
|
|||
The present value of the above-mentioned minimum operating lease payments discounted at the incremental borrowing rate
|
200,867
|
|||
Deduct: Present value of payments with terms of 12 months or less and leases for which the underlying assets are individually of
low value when it is new
|
(2,303
|
)
|
||
Lease liabilities recognised on 1 January 2019 (including Non-current liabilities due within one year) (Note 33)
|
198,564
|
(b) |
The revision of general enterprise financial statements format
|
(i) |
The impact to the Group’s financial statements is as follows:
|
Contents and reasons of the changes
|
Item
|
31 December
2018
RMB million
|
1 January
2018
RMB million
|
||||||
The Group separately presents bills
|
Accounts receivable
|
56,993
|
68,494
|
||||||
and accounts receivable into bills
|
Bills receivable
|
7,886
|
16,207
|
||||||
receivable and accounts receivable
|
Bills receivable and accounts receivable
|
(64,879
|
)
|
(84,701
|
)
|
||||
The Group separately presents bills
|
Accounts payable
|
186,341
|
200,073
|
||||||
and accounts payable into bills
|
Bills payable
|
6,416
|
6,462
|
||||||
payable and accounts payable
|
Bills payable and accounts payable
|
(192,757
|
)
|
(206,535
|
)
|
3 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(26) |
Changes in significant accounting policies (Continued)
|
(b) |
The revision of general enterprise financial statements format (Continued)
|
(ii) |
The impact to the Company’s financial statements is as follows:
|
Contents and reasons of the changes
|
Item
|
31 December
2018
RMB million
|
1 January
2018
RMB million
|
||||||
The Company separately presents bills and
|
Accounts receivable
|
29,989
|
37,609
|
||||||
accounts receivable into bills receivable and
|
Bills receivable
|
156
|
157
|
||||||
accounts receivable
|
Bills receivable and accounts receivable
|
(30,145
|
)
|
(37,766
|
)
|
||||
The Company separately presents bills
|
Accounts payable
|
82,343
|
83,449
|
||||||
and accounts payable into bills payable
|
Bills payable
|
2,075
|
3,155
|
||||||
and accounts payable
|
Bills payable and accounts payable
|
(84,418
|
)
|
(86,604
|
)
|
4 |
TAXATION
|
Products
|
Effective from
13 January 2015
(RMB/Ton)
|
|||
Gasoline
|
2,109.76
|
|||
Diesel
|
1,411.20
|
|||
Naphtha
|
2,105.20
|
|||
Solvent oil
|
1,948.64
|
|||
Lubricant oil
|
1,711.52
|
|||
Fuel oil
|
1,218.00
|
|||
Jet fuel oil
|
1,495.20
|
5 |
CASH AT BANK AND ON HAND
|
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||
Original currency million
|
Exchange rates
|
RMB million
|
Original currency million
|
Exchange rates
|
RMB million
|
|||||||||||||||||||
Cash on hand
|
||||||||||||||||||||||||
Renminbi
|
14
|
82
|
||||||||||||||||||||||
Cash at bank
|
||||||||||||||||||||||||
Renminbi
|
78,924
|
102,572
|
||||||||||||||||||||||
US Dollar
|
1,889
|
6.9762
|
13,174
|
3,377
|
6.8632
|
23,179
|
||||||||||||||||||
Hong Kong Dollar
|
17
|
0.8958
|
15
|
39
|
0.8762
|
35
|
||||||||||||||||||
EUR
|
1
|
7.8155
|
8
|
1
|
7.8473
|
11
|
||||||||||||||||||
Others
|
85
|
79
|
||||||||||||||||||||||
92,220
|
125,958
|
|||||||||||||||||||||||
Deposits at related parities
|
||||||||||||||||||||||||
Renminbi
|
17,684
|
24,625
|
||||||||||||||||||||||
US Dollar
|
2,560
|
6.9762
|
17,862
|
2,389
|
6.8632
|
16,374
|
||||||||||||||||||
EUR
|
14
|
7.8155
|
106
|
4
|
7.8473
|
33
|
||||||||||||||||||
Others
|
55
|
25
|
||||||||||||||||||||||
35,707
|
41,057
|
|||||||||||||||||||||||
Total
|
127,927
|
167,015
|
6 |
FINANCIAL ASSETS HELD FOR TRADING
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Structured deposits
|
3,318
|
25,550
|
||||||
Equity investments, listed and at quoted market price
|
1
|
182
|
||||||
Total
|
3,319
|
25,732
|
7 |
DERIVATIVE FINANCIAL ASSETS AND DERIVATIVE FINANCIAL LIABILITIES
|
8 |
ACCOUNTS RECEIVABLE
|
The Group
|
The Company
|
|||||||||||||||
At 31 December
|
At 31 December
|
At 31 December
|
At 31 December
|
|||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
RMB million
|
RMB million
|
RMB million
|
RMB million
|
|||||||||||||
Accounts receivable
|
56,713
|
57,599
|
21,675
|
30,120
|
||||||||||||
Less: Allowance for doubtful accounts
|
1,848
|
606
|
131
|
131
|
||||||||||||
Total
|
54,865
|
56,993
|
21,544
|
29,989
|
The Group
|
||||||||||||||||||||||||||||||||
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||||||||||
Amount
RMB million
|
Percentage to total accounts receivable
%
|
Allowance
RMB million
|
Percentage of allowance to accounts receivable balance
%
|
Amount
RMB million
|
Percentage to total accounts receivable
%
|
Allowance
RMB million
|
Percentage of allowance to accounts receivable balance
%
|
|||||||||||||||||||||||||
Within one year
|
55,721
|
98.2
|
1,204
|
2.2
|
56,431
|
97.9
|
–
|
–
|
||||||||||||||||||||||||
Between one and two years
|
260
|
0.5
|
70
|
26.9
|
436
|
0.8
|
83
|
19.0
|
||||||||||||||||||||||||
Between two and three years
|
129
|
0.2
|
65
|
50.4
|
289
|
0.5
|
165
|
57.1
|
||||||||||||||||||||||||
Over three years
|
603
|
1.1
|
509
|
84.4
|
443
|
0.8
|
358
|
80.8
|
||||||||||||||||||||||||
Total
|
56,713
|
100.0
|
1,848
|
57,599
|
100.0
|
606
|
The Company
|
||||||||||||||||||||||||||||||||
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||||||||||
Amount
RMB million
|
Percentage to total accounts receivable
%
|
Allowance
RMB million
|
Percentage of allowance to accounts receivable balance
%
|
Amount
RMB million
|
Percentage to total accounts receivable
%
|
Allowance
RMB million
|
Percentage of allowance to accounts receivable balance
%
|
|||||||||||||||||||||||||
Within one year
|
21,368
|
98.6
|
–
|
–
|
29,797
|
98.9
|
–
|
–
|
||||||||||||||||||||||||
Between one and two years
|
105
|
0.5
|
17
|
16.2
|
125
|
0.4
|
15
|
12.0
|
||||||||||||||||||||||||
Between two and three years
|
51
|
0.2
|
15
|
29.4
|
54
|
0.2
|
10
|
18.5
|
||||||||||||||||||||||||
Over three years
|
151
|
0.7
|
99
|
65.6
|
144
|
0.5
|
106
|
73.6
|
||||||||||||||||||||||||
Total
|
21,675
|
100.0
|
131
|
30,120
|
100.0
|
131
|
At 31 December
|
At 31 December
|
|||||||
2019
|
2018
|
|||||||
Total amount (RMB million)
|
9,878
|
15,699
|
||||||
Percentage to the total balance of accounts receivable
|
17.4
|
%
|
27.3
|
%
|
||||
Allowance for doubtful accounts
|
–
|
–
|
9 |
RECEIVABLES FINANCING
|
10 |
PREPAYMENTS
|
The Group
|
The Company
|
|||||||||||||||
At 31 December
|
At 31 December
|
At 31 December
|
At 31 December
|
|||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
RMB million
|
RMB million
|
RMB million
|
RMB million
|
|||||||||||||
Prepayments
|
5,146
|
5,990
|
2,671
|
2,493
|
||||||||||||
Less: Allowance for doubtful accounts
|
80
|
53
|
6
|
5
|
||||||||||||
Total
|
5,066
|
5,937
|
2,665
|
2,488
|
The Group
|
||||||||||||||||||||||||||||||||
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||||||||||
Amount
RMB million
|
Percentage to total prepayments
%
|
Allowance
RMB million
|
Percentage of allowance to prepayments balance
%
|
Amount
RMB million
|
Percentage to total prepayments
%
|
Allowance
RMB million
|
Percentage of allowance to prepayments balance
%
|
|||||||||||||||||||||||||
Within one year
|
4,405
|
85.6
|
–
|
–
|
5,683
|
94.9
|
–
|
–
|
||||||||||||||||||||||||
Between one and two years
|
589
|
11.5
|
26
|
4.4
|
169
|
2.8
|
38
|
22.5
|
||||||||||||||||||||||||
Between two and three years
|
33
|
0.6
|
5
|
15.2
|
60
|
1.0
|
5
|
8.3
|
||||||||||||||||||||||||
Over three years
|
119
|
2.3
|
49
|
41.2
|
78
|
1.3
|
10
|
12.8
|
||||||||||||||||||||||||
Total
|
5,146
|
100.0
|
80
|
5,990
|
100.0
|
53
|
The Company
|
||||||||||||||||||||||||||||||||
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||||||||||
Amount
RMB million
|
Percentage to total prepayments
%
|
Allowance
RMB million
|
Percentage of allowance to prepayments balance
%
|
Amount
RMB million
|
Percentage to total prepayments
%
|
Allowance
RMB million
|
Percentage of allowance to prepayments balance
%
|
|||||||||||||||||||||||||
Within one year
|
2,424
|
90.7
|
–
|
–
|
2,306
|
92.6
|
–
|
–
|
||||||||||||||||||||||||
Between one and two years
|
123
|
4.6
|
1
|
0.8
|
70
|
2.8
|
1
|
1.4
|
||||||||||||||||||||||||
Between two and three years
|
39
|
1.5
|
2
|
5.1
|
36
|
1.4
|
1
|
2.8
|
||||||||||||||||||||||||
Over three years
|
85
|
3.2
|
3
|
3.5
|
81
|
3.2
|
3
|
3.7
|
||||||||||||||||||||||||
Total
|
2,671
|
100.0
|
6
|
2,493
|
100.0
|
5
|
At 31 December
|
At 31 December
|
|||||||
2019
|
2018
|
|||||||
Total amount (RMB million)
|
1,940
|
2,009
|
||||||
Percentage to the total balance of prepayments
|
37.7
|
%
|
33.5
|
%
|
11 |
OTHER RECEIVABLES
|
The Group
|
The Company
|
|||||||||||||||
At 31 December
|
At 31 December
|
At 31 December
|
At 31 December
|
|||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
RMB million
|
RMB million
|
RMB million
|
RMB million
|
|||||||||||||
Other receivables
|
25,565
|
26,793
|
79,827
|
58,549
|
||||||||||||
Less: Allowance for doubtful accounts
|
1,456
|
1,481
|
955
|
1,117
|
||||||||||||
Total
|
24,109
|
25,312
|
78,872
|
57,432
|
The Group
|
||||||||||||||||||||||||||||||||
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||||||||||
Amount
RMB million
|
Percentage to total other receivables
%
|
Allowance
RMB million
|
Percentage of allowance to other receivables balance
%
|
Amount
RMB million
|
Percentage to total other receivables
%
|
Allowance
RMB million
|
Percentage of allowance to other receivables balance
%
|
|||||||||||||||||||||||||
Within one year
|
22,115
|
86.5
|
87
|
0.4
|
24,301
|
90.7
|
–
|
–
|
||||||||||||||||||||||||
Between one and two years
|
1,554
|
6.1
|
52
|
3.3
|
329
|
1.2
|
53
|
16.1
|
||||||||||||||||||||||||
Between two and three years
|
198
|
0.8
|
71
|
35.9
|
320
|
1.2
|
21
|
6.6
|
||||||||||||||||||||||||
Over three years
|
1,698
|
6.6
|
1,246
|
73.4
|
1,843
|
6.9
|
1,407
|
76.3
|
||||||||||||||||||||||||
Total
|
25,565
|
100.0
|
1,456
|
26,793
|
100.0
|
1,481
|
The Company
|
||||||||||||||||||||||||||||||||
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||||||||||
Amount
RMB million
|
Percentage to total other receivables
%
|
Allowance
RMB million
|
Percentage of allowance to other receivables balance
%
|
Amount
RMB million
|
Percentage to total other receivables
%
|
Allowance
RMB million
|
Percentage of allowance to other receivables balance
%
|
|||||||||||||||||||||||||
Within one year
|
44,402
|
55.6
|
–
|
–
|
27,088
|
46.3
|
–
|
–
|
||||||||||||||||||||||||
Between one and two years
|
13,826
|
17.3
|
3
|
–
|
13,233
|
22.6
|
1
|
–
|
||||||||||||||||||||||||
Between two and three years
|
6,933
|
8.7
|
1
|
–
|
9,747
|
16.6
|
–
|
–
|
||||||||||||||||||||||||
Over three years
|
14,666
|
18.4
|
951
|
6.5
|
8,481
|
14.5
|
1,116
|
13.2
|
||||||||||||||||||||||||
Total
|
79,827
|
100.0
|
955
|
58,549
|
100.0
|
1,117
|
At 31 December
2019
|
At 31 December
2018
|
|||||||
Total amount (RMB million)
|
10,561
|
6,837
|
||||||
Ageing
|
Within one year
|
Within one year
|
||||||
Percentage to the total balance of other receivables
|
41.3
|
%
|
25.5
|
%
|
||||
Allowance for doubtful accounts
|
–
|
–
|
12 |
INVENTORIES
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Raw materials
|
88,465
|
85,469
|
||||||
Work in progress
|
12,615
|
13,690
|
||||||
Finished goods
|
91,368
|
88,929
|
||||||
Spare parts and consumables
|
2,576
|
2,872
|
||||||
195,024
|
190,960
|
|||||||
Less: Provision for diminution in value of inventories
|
2,582
|
6,376
|
||||||
Total
|
192,442
|
184,584
|
13 |
LONG-TERM EQUITY INVESTMENTS
|
Investments in joint ventures
RMB million
|
Investments in associates
RMB million
|
Provision for impairment losses
RMB million
|
Total
RMB million
|
|||||||||||||
Balance at 1 January 2019
|
57,134
|
90,273
|
(1,686
|
)
|
145,721
|
|||||||||||
Additions for the year
|
2,884
|
1,697
|
–
|
4,581
|
||||||||||||
Share of profits less losses under the equity method
|
4,385
|
8,392
|
–
|
12,777
|
||||||||||||
Change of other comprehensive loss under the equity method
|
(788
|
)
|
(22
|
)
|
–
|
(810
|
)
|
|||||||||
Other equity movements under the equity method
|
101
|
(8
|
)
|
–
|
93
|
|||||||||||
Dividends declared
|
(6,494
|
)
|
(3,695
|
)
|
–
|
(10,189
|
)
|
|||||||||
Disposals for the year
|
(68
|
)
|
(398
|
)
|
–
|
(466
|
)
|
|||||||||
Foreign currency translation differences
|
279
|
267
|
(27
|
)
|
519
|
|||||||||||
Other movements
|
–
|
(25
|
)
|
–
|
(25
|
)
|
||||||||||
Movement of provision for impairment
|
–
|
–
|
3
|
3
|
||||||||||||
Balance at 31 December 2019
|
57,433
|
96,481
|
(1,710
|
)
|
152,204
|
Investments in subsidiaries
RMB million
|
Investments in joint ventures
RMB million
|
Investments in associates
RMB million
|
Provision for impairment losses
RMB million
|
Total
RMB million
|
||||||||||||||||
Balance at 1 January 2019
|
259,934
|
16,093
|
21,163
|
(7,983
|
)
|
289,207
|
||||||||||||||
Additions for the year
|
15,272
|
362
|
39
|
–
|
15,673
|
|||||||||||||||
Share of profits less losses under the equity method
|
–
|
2,069
|
1,510
|
–
|
3,579
|
|||||||||||||||
Change of other comprehensive income under the equity method
|
–
|
–
|
201
|
–
|
201
|
|||||||||||||||
Other equity movements under the equity method
|
–
|
40
|
1
|
–
|
41
|
|||||||||||||||
Dividends declared
|
–
|
(3,034
|
)
|
(54
|
)
|
–
|
(3,088
|
)
|
||||||||||||
Disposals for the year
|
(986
|
)
|
–
|
(44
|
)
|
–
|
(1,030
|
)
|
||||||||||||
Movement of provision for impairment
|
–
|
–
|
–
|
104
|
104
|
|||||||||||||||
Balance at 31 December 2019
|
274,220
|
15,530
|
22,816
|
(7,879
|
)
|
304,687
|
13 |
LONG-TERM EQUITY INVESTMENTS (Continued)
|
(a) |
Principal joint ventures and associates
|
Name of investees
|
Principal place of business
|
Register location
|
Legal representative
|
Principal activities
|
Registered Capital RMB million
|
Percentage of equity/voting right directly or indirectly held by the Company
|
||||||
1. Joint ventures
|
||||||||||||
Fujian Refining & Petrochemical Company Limited (“FREP”)
|
PRC
|
PRC
|
Gu Yuefeng
|
Manufacturing refining oil products
|
14,758
|
50.00
|
%
|
|||||
BASF-YPC Company Limited (“BASF-YPC”)
|
PRC
|
PRC
|
Hong Jianqiao
|
Manufacturing and distribution of petrochemical products
|
12,704
|
40.00
|
%
|
|||||
Taihu Limited (“Taihu”)
|
Russia
|
Cyprus
|
NA
|
Crude oil and natural gas extraction
|
25,000 USD
|
49.00
|
%
|
|||||
Yanbu Aramco Sinopec Refining Company Ltd. (“YASREF”)
|
Saudi Arabia
|
Saudi Arabia
|
NA
|
Petroleum refining and processing
|
1,560 million USD
|
37.50
|
%
|
|||||
Sinopec SABIC Tianjin Petrochemical Company Limited (“Sinopec SABIC Tianjin”)
|
PRC
|
PRC
|
UWAIDH AL HARETHI
|
Manufacturing and distribution of petrochemical products
|
9,796
|
50.00
|
%
|
|||||
2. Associates
|
||||||||||||
Sinopec Sichuan to East China Gas Pipeline Co., Ltd. (“Pipeline Ltd”)
|
PRC
|
PRC
|
Quan Kai
|
Operation of natural gas pipelines and auxiliary facilities
|
200
|
50.00
|
%
|
|||||
Sinopec Finance Company Limited (“Sinopec Finance”)
|
PRC
|
PRC
|
Zhao Dong
|
Provision of non-banking financial services
|
18,000
|
49.00
|
%
|
|||||
PAO SIBUR Holding (“SIBUR”) (i)
|
Russia
|
Russia
|
NA
|
Processing natural gas and manufacturing petrochemical products
|
21,784 million RUB
|
10.00
|
%
|
|||||
Zhongtian Synergetic Energy Company Limited (“Zhongtian Synergetic Energy”)
|
PRC
|
PRC
|
Peng Yi
|
Mining coal and manufacturing of coal-chemical products
|
17,516
|
38.75
|
%
|
|||||
Caspian Investments Resources Ltd. (“CIR”)
|
The Republic of Kazakhstan
|
British Virgin Islands
|
NA
|
Crude oil and natural gas extraction
|
10,000 USD
|
50.00
|
%
|
13 |
LONG-TERM EQUITY INVESTMENTS (Continued)
|
(b) |
Major financial information of principal joint ventures
|
FREP
|
BASF-YPC
|
Taihu
|
YASREF
|
Sinopec SABIC Tianjin
|
||||||||||||||||||||||||||||||||||||
At 31 December 2019
RMB million
|
At 31 December 2018
RMB million
|
At 31 December 2019
RMB million
|
At 31 December 2018
RMB million
|
At 31 December 2019
RMB million
|
At 31 December 2018
RMB million
|
At 31 December 2019
RMB million
|
At 31 December 2018
RMB million
|
At 31 December 2019
RMB million
|
At 31 December 2018
RMB million
|
|||||||||||||||||||||||||||||||
Current assets
|
||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
5,603
|
7,388
|
1,154
|
1,582
|
4,485
|
3,406
|
733
|
930
|
3,242
|
5,110
|
||||||||||||||||||||||||||||||
Other current assets
|
11,977
|
9,248
|
4,937
|
5,795
|
2,336
|
3,689
|
11,311
|
10,267
|
4,501
|
4,007
|
||||||||||||||||||||||||||||||
Total current assets
|
17,580
|
16,636
|
6,091
|
7,377
|
6,821
|
7,095
|
12,044
|
11,197
|
7,743
|
9,117
|
||||||||||||||||||||||||||||||
Non-current assets
|
17,267
|
19,271
|
10,498
|
11,086
|
10,453
|
9,216
|
50,548
|
51,873
|
14,878
|
13,990
|
||||||||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||||||||||||||||||
Current financial liabilities
|
(1,280
|
)
|
(1,200
|
)
|
(237
|
)
|
(725
|
)
|
(57
|
)
|
(59
|
)
|
(7,445
|
)
|
(4,806
|
)
|
(500
|
)
|
(500
|
)
|
||||||||||||||||||||
Other current liabilities
|
(7,090
|
)
|
(4,939
|
)
|
(1,808
|
)
|
(1,822
|
)
|
(1,815
|
)
|
(2,124
|
)
|
(12,504
|
)
|
(12,217
|
)
|
(2,896
|
)
|
(2,507
|
)
|
||||||||||||||||||||
Total current liabilities
|
(8,370
|
)
|
(6,139
|
)
|
(2,045
|
)
|
(2,547
|
)
|
(1,872
|
)
|
(2,183
|
)
|
(19,949
|
)
|
(17,023
|
)
|
(3,396
|
)
|
(3,007
|
)
|
||||||||||||||||||||
Non-current liabilities
|
||||||||||||||||||||||||||||||||||||||||
Non-current financial liabilities
|
(11,185
|
)
|
(12,454
|
)
|
–
|
(218
|
)
|
(125
|
)
|
(72
|
)
|
(29,445
|
)
|
(32,364
|
)
|
(4,592
|
)
|
(3,651
|
)
|
|||||||||||||||||||||
Other non-current liabilities
|
(290
|
)
|
(279
|
)
|
(35
|
)
|
(17
|
)
|
(1,984
|
)
|
(2,271
|
)
|
(1,963
|
)
|
(937
|
)
|
(368
|
)
|
(331
|
)
|
||||||||||||||||||||
Total non-current liabilities
|
(11,475
|
)
|
(12,733
|
)
|
(35
|
)
|
(235
|
)
|
(2,109
|
)
|
(2,343
|
)
|
(31,408
|
)
|
(33,301
|
)
|
(4,960
|
)
|
(3,982
|
)
|
||||||||||||||||||||
Net assets
|
15,002
|
17,035
|
14,509
|
15,681
|
13,293
|
11,785
|
11,235
|
12,746
|
14,265
|
16,118
|
||||||||||||||||||||||||||||||
Net assets attributable to shareholders of the company
|
15,002
|
17,035
|
14,509
|
15,681
|
12,829
|
11,373
|
11,235
|
12,746
|
14,265
|
16,118
|
||||||||||||||||||||||||||||||
Net assets attributable to minority interests
|
–
|
–
|
–
|
–
|
464
|
412
|
–
|
–
|
–
|
–
|
||||||||||||||||||||||||||||||
Share of net assets from joint ventures
|
7,501
|
8,518
|
5,804
|
6,272
|
6,286
|
5,573
|
4,213
|
4,780
|
7,133
|
8,059
|
||||||||||||||||||||||||||||||
Carrying Amounts
|
7,501
|
8,518
|
5,804
|
6,272
|
6,286
|
5,573
|
4,213
|
4,780
|
7,133
|
8,059
|
FREP
|
BASF-YPC
|
Taihu
|
YASREF
|
Sinopec SABIC Tianjin
|
||||||||||||||||||||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|||||||||||||||||||||||||||||||
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
|||||||||||||||||||||||||||||||
Turnover
|
57,047
|
52,469
|
19,590
|
21,574
|
15,222
|
14,944
|
75,940
|
77,561
|
20,541
|
23,501
|
||||||||||||||||||||||||||||||
Interest income
|
124
|
157
|
32
|
41
|
94
|
141
|
58
|
101
|
171
|
169
|
||||||||||||||||||||||||||||||
Interest expense
|
(597
|
)
|
(647
|
)
|
(26
|
)
|
(43
|
)
|
(265
|
)
|
(151
|
)
|
(1,470
|
)
|
(1,382
|
)
|
(134
|
)
|
(167
|
)
|
||||||||||||||||||||
Profit/(loss) before taxation
|
964
|
3,920
|
2,314
|
3,625
|
3,320
|
3,493
|
(1,292
|
)
|
(1,569
|
)
|
2,178
|
3,916
|
||||||||||||||||||||||||||||
Tax expense
|
(197
|
)
|
(935
|
)
|
(579
|
)
|
(897
|
)
|
(708
|
)
|
(729
|
)
|
(8
|
)
|
(249
|
)
|
(533
|
)
|
(993
|
)
|
||||||||||||||||||||
Profit/(loss) for the year
|
767
|
2,985
|
1,735
|
2,728
|
2,612
|
2,764
|
(1,300
|
)
|
(1,818
|
)
|
1,645
|
2,923
|
||||||||||||||||||||||||||||
Other comprehensive loss/(income)
|
–
|
–
|
–
|
–
|
(1,105
|
)
|
921
|
(261
|
)
|
1,059
|
–
|
–
|
||||||||||||||||||||||||||||
Total comprehensive income/(loss)
|
767
|
2,985
|
1,735
|
2,728
|
1,507
|
3,685
|
(1,561
|
)
|
(759
|
)
|
1,645
|
2,923
|
||||||||||||||||||||||||||||
Dividends from joint ventures
|
1,400
|
1,200
|
1,224
|
1,226
|
–
|
–
|
–
|
–
|
1,750
|
–
|
||||||||||||||||||||||||||||||
Share of net profit/(loss) from joint ventures
|
384
|
1,493
|
694
|
1,091
|
1,235
|
1,307
|
(488
|
)
|
(682
|
)
|
823
|
1,462
|
||||||||||||||||||||||||||||
Share of other comprehensive loss/(income) from joint ventures (ii)
|
–
|
–
|
–
|
–
|
(522
|
)
|
435
|
(98
|
)
|
397
|
–
|
–
|
13 |
LONG-TERM EQUITY INVESTMENTS (Continued)
|
(c) |
Major financial information of principal associates
|
Pipeline Ltd
|
Sinopec Finance
|
SIBUR
|
Zhongtian Synergetic Energy
|
CIR
|
||||||||||||||||||||||||||||||||||||
At 31 December 2019
|
At 31 December 2018
|
At 31 December 2019
|
At 31 December 2018
|
At 31 December 2019
|
At 31 December 2018
|
At 31 December 2019
|
At 31 December 2018
|
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||||||||||
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
|||||||||||||||||||||||||||||||
Current assets
|
13,245
|
12,498
|
180,383
|
209,837
|
31,634
|
22,502
|
4,219
|
7,477
|
7,612
|
6,712
|
||||||||||||||||||||||||||||||
Non-current assets
|
37,842
|
39,320
|
18,926
|
16,359
|
182,646
|
170,796
|
56,424
|
49,961
|
971
|
1,828
|
||||||||||||||||||||||||||||||
Current liabilities
|
(721
|
)
|
(1,020
|
)
|
(170,621
|
)
|
(200,402
|
)
|
(31,295
|
)
|
(23,293
|
)
|
(13,887
|
)
|
(7,252
|
)
|
(936
|
)
|
(961
|
)
|
||||||||||||||||||||
Non-current liabilities
|
(2,910
|
)
|
(3,026
|
)
|
(582
|
)
|
(332
|
)
|
(71,289
|
)
|
(58,628
|
)
|
(26,227
|
)
|
(31,436
|
)
|
(166
|
)
|
(673
|
)
|
||||||||||||||||||||
Net assets
|
47,456
|
47,772
|
28,106
|
25,462
|
111,696
|
111,377
|
20,529
|
18,750
|
7,481
|
6,906
|
||||||||||||||||||||||||||||||
Net assets attributable to shareholders of the Company
|
47,456
|
47,772
|
28,106
|
25,462
|
111,250
|
110,860
|
20,529
|
18,750
|
7,481
|
6,906
|
||||||||||||||||||||||||||||||
Net assets attributable to minority interests
|
–
|
–
|
–
|
–
|
446
|
517
|
–
|
–
|
–
|
–
|
||||||||||||||||||||||||||||||
Share of net assets from associates
|
23,728
|
23,886
|
13,772
|
12,476
|
11,125
|
11,086
|
7,955
|
7,266
|
3,741
|
3,453
|
||||||||||||||||||||||||||||||
Carrying Amounts
|
23,728
|
23,886
|
13,772
|
12,476
|
11,125
|
11,086
|
7,955
|
7,266
|
3,741
|
3,453
|
Pipeline Ltd
|
Sinopec Finance
|
SIBUR
|
Zhongtian Synergetic Energy
|
CIR
|
||||||||||||||||||||||||||||||||||||
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
2019
|
2018
|
|||||||||||||||||||||||||||||||
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
|||||||||||||||||||||||||||||||
Turnover
|
5,008
|
4,746
|
4,966
|
4,536
|
56,706
|
59,927
|
13,329
|
12,235
|
2,334
|
2,856
|
||||||||||||||||||||||||||||||
Profit for the year
|
2,191
|
2,022
|
2,234
|
1,868
|
6,513
|
10,400
|
1,994
|
1,142
|
424
|
583
|
||||||||||||||||||||||||||||||
Other comprehensive income/(loss)
|
–
|
–
|
411
|
(157
|
)
|
(1,435
|
)
|
6,410
|
–
|
–
|
151
|
116
|
||||||||||||||||||||||||||||
Total comprehensive income
|
2,191
|
2,022
|
2,645
|
1,711
|
5,078
|
16,810
|
1,994
|
1,142
|
575
|
699
|
||||||||||||||||||||||||||||||
Dividends declared by associates
|
1,259
|
1,207
|
–
|
490
|
468
|
271
|
219
|
–
|
–
|
–
|
||||||||||||||||||||||||||||||
Share of profit from associates
|
1,096
|
1,011
|
1,095
|
915
|
651
|
1,040
|
773
|
443
|
212
|
292
|
||||||||||||||||||||||||||||||
Share of other comprehensive income/(loss) from associates (ii)
|
–
|
–
|
201
|
(77
|
)
|
(144
|
)
|
641
|
–
|
–
|
76
|
58
|
(i) |
Sinopec is able to exercise significant influence in SIBUR since Sinopec has a member in SIBUR’s Board of Director and has a member in SIBUR’s Management Board.
|
(ii) |
Including foreign currency translation differences.
|
14 |
FIXED ASSETS
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Fixed assets (a)
|
622,409
|
617,762
|
||||||
Fixed assets pending for disposal
|
14
|
50
|
||||||
Total
|
622,423
|
617,812
|
(a) |
Fixed assets
|
Plants and buildings
RMB million
|
Oil and gas properties
RMB million
|
Equipment, machinery and others
RMB million
|
Total
RMB million
|
|||||||||||||
Cost:
|
||||||||||||||||
Balance at 1 January 2019
|
122,041
|
695,724
|
965,495
|
1,783,260
|
||||||||||||
Additions for the year
|
160
|
1,408
|
3,856
|
5,424
|
||||||||||||
Transferred from construction in progress
|
6,192
|
31,378
|
54,275
|
91,845
|
||||||||||||
Reclassifications
|
1,051
|
(76
|
)
|
(975
|
)
|
–
|
||||||||||
Decreases for the year
|
(993
|
)
|
(1,549
|
)
|
(14,499
|
)
|
(17,041
|
)
|
||||||||
Exchange adjustments
|
42
|
667
|
71
|
780
|
||||||||||||
Balance at 31 December 2019
|
128,493
|
727,552
|
1,008,223
|
1,864,268
|
||||||||||||
Accumulated depreciation:
|
||||||||||||||||
Balance at 1 January 2019
|
51,205
|
506,771
|
528,459
|
1,086,435
|
||||||||||||
Additions for the year
|
4,095
|
36,289
|
47,583
|
87,967
|
||||||||||||
Reclassifications
|
292
|
(46
|
)
|
(246
|
)
|
–
|
||||||||||
Decreases for the year
|
(609
|
)
|
(6
|
)
|
(10,149
|
)
|
(10,764
|
)
|
||||||||
Exchange adjustments
|
21
|
621
|
39
|
681
|
||||||||||||
Balance at 31 December 2019
|
55,004
|
543,629
|
565,686
|
1,164,319
|
||||||||||||
Provision for impairment losses:
|
||||||||||||||||
Balance at 1 January 2019
|
3,929
|
43,517
|
31,617
|
79,063
|
||||||||||||
Additions for the year
|
11
|
–
|
185
|
196
|
||||||||||||
Reclassifications
|
–
|
–
|
–
|
–
|
||||||||||||
Decreases for the year
|
(151
|
)
|
–
|
(1,615
|
)
|
(1,766
|
)
|
|||||||||
Exchange adjustments
|
–
|
46
|
1
|
47
|
||||||||||||
Balance at 31 December 2019
|
3,789
|
43,563
|
30,188
|
77,540
|
||||||||||||
Net book value:
|
||||||||||||||||
Balance at 31 December 2019
|
69,700
|
140,360
|
412,349
|
622,409
|
||||||||||||
Balance at 31 December 2018
|
66,907
|
145,436
|
405,419
|
617,762
|
At 31 December
2019
RMB million
|
At
31 December
2018
RMB million
|
|||||||
Fixed assets (a)
|
291,544
|
302,048
|
||||||
Fixed assets pending for disposal
|
3
|
34
|
||||||
Total
|
291,547
|
302,082
|
14 |
FIXED ASSETS (Continued)
|
(a) |
Fixed assets
|
Plants and buildings
RMB million
|
Oil and gas properties
RMB million
|
Equipment, machinery and others
RMB million
|
Total
RMB million
|
|||||||||||||
Cost:
|
||||||||||||||||
Balance at 1 January 2019
|
48,827
|
574,937
|
467,357
|
1,091,121
|
||||||||||||
Additions for the year
|
66
|
1,131
|
656
|
1,853
|
||||||||||||
Transferred from construction in progress
|
946
|
23,780
|
20,189
|
44,915
|
||||||||||||
Reclassifications
|
715
|
(78
|
)
|
(637
|
)
|
–
|
||||||||||
Transferred from subsidiaries
|
262
|
–
|
1,777
|
2,039
|
||||||||||||
Transferred to subsidiaries (i)
|
(629
|
)
|
(1,458
|
)
|
(8,751
|
)
|
(10,838
|
)
|
||||||||
Decreases for the year
|
(1,187
|
)
|
(8
|
)
|
(8,341
|
)
|
(9,536
|
)
|
||||||||
Balance at 31 December 2019
|
49,000
|
598,304
|
472,250
|
1,119,554
|
||||||||||||
Accumulated depreciation:
|
||||||||||||||||
Balance at 1 January 2019
|
23,169
|
417,573
|
286,038
|
726,780
|
||||||||||||
Additions for the year
|
1,527
|
29,069
|
20,904
|
51,500
|
||||||||||||
Reclassifications
|
240
|
(43
|
)
|
(197
|
)
|
–
|
||||||||||
Transferred from subsidiaries
|
112
|
–
|
1,530
|
1,642
|
||||||||||||
Transferred to subsidiaries (i)
|
(325
|
)
|
(521
|
)
|
(5,270
|
)
|
(6,116
|
)
|
||||||||
Decreases for the year
|
(491
|
)
|
(2
|
)
|
(5,323
|
)
|
(5,816
|
)
|
||||||||
Balance at 31 December 2019
|
24,232
|
446,076
|
297,682
|
767,990
|
||||||||||||
Provision for impairment losses:
|
||||||||||||||||
Balance at 1 January 2019
|
1,880
|
38,297
|
22,116
|
62,293
|
||||||||||||
Additions for the year
|
2
|
–
|
127
|
129
|
||||||||||||
Reclassifications
|
–
|
–
|
–
|
–
|
||||||||||||
Transferred from subsidiaries
|
66
|
–
|
174
|
240
|
||||||||||||
Transferred to subsidiaries (i)
|
(24
|
)
|
(914
|
)
|
(194
|
)
|
(1,132
|
)
|
||||||||
Decreases for the year
|
(129
|
)
|
–
|
(1,381
|
)
|
(1,510
|
)
|
|||||||||
Balance at 31 December 2019
|
1,795
|
37,383
|
20,842
|
60,020
|
||||||||||||
Net book value:
|
||||||||||||||||
Balance at 31 December 2019
|
22,973
|
114,845
|
153,726
|
291,544
|
||||||||||||
Balance at 31 December 2018
|
23,778
|
119,067
|
159,203
|
302,048
|
(i) |
In 2019, the total amount transferred to subsidiaries is RMB 10,838 million, which is mainly caused by Sinopec Wuhan Petrochemical Branch transferring its fixed assets
related to refining production to its subsidiary Sinopec-SK (Wuhan) Petrochemical Company Limited (“Sinopec-SK”). The original cost of transferred fixed assets is RMB 9,122 million, the depreciation is RMB 5,537 million, the impairment
is RMB 22 million, and the total net book value of transferred fixed assets is RMB 3,563 million.
|
15 |
CONSTRUCTION IN PROGRESS
|
The Group
RMB million
|
The Company
RMB million
|
|||||||
Cost:
|
||||||||
Balance at 1 January 2019
|
138,817
|
52,011
|
||||||
Additions for the year
|
144,369
|
61,438
|
||||||
Disposals for the year
|
(115
|
)
|
(163
|
)
|
||||
Transferred to subsidiaries
|
–
|
(903
|
)
|
|||||
Dry hole costs written off
|
(5,831
|
)
|
(5,432
|
)
|
||||
Transferred to fixed assets
|
(91,845
|
)
|
(44,915
|
)
|
||||
Reclassification to other assets
|
(10,086
|
)
|
(1,130
|
)
|
||||
Exchange adjustments
|
17
|
–
|
||||||
Balance at 31 December 2019
|
175,326
|
60,906
|
||||||
Provision for impairment losses:
|
||||||||
Balance at 1 January 2019
|
1,854
|
413
|
||||||
Additions for the year
|
135
|
–
|
||||||
Decreases for the year
|
(161
|
)
|
–
|
|||||
Exchange adjustments
|
16
|
–
|
||||||
Balance at 31 December 2019
|
1,844
|
413
|
||||||
Net book value:
|
||||||||
Balance at 31 December 2019
|
173,482
|
60,493
|
||||||
Balance at 31 December 2018
|
136,963
|
51,598
|
Project name
|
Budgeted amount
|
Balance at 1 January 2019
|
Net change for the year
|
Balance at 31 December 2019
|
Percentage of project investment to budgeted amount
|
Source of funding
|
Accumulated interest capitalised at 31 December 2019
|
||||||||||||||||||
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
|||||||||||||||||||||
Zhongke Refine Integration Project
|
34,667
|
17,779
|
10,803
|
28,582
|
87
|
%
|
Bank loans & self-financing
|
720
|
|||||||||||||||||
Wen 23 Gas Storage Project (First-stage)
|
13,865
|
3,428
|
8,692
|
12,120
|
87
|
%
|
Bank loans & self-financing
|
267
|
|||||||||||||||||
Xinjiang Coal-based Substitute Natural Gas (SNG) Export Pipeline Construction Project (First-stage)
|
11,589
|
5,682
|
2,248
|
7,930
|
68
|
%
|
Bank loans & self-financing
|
204
|
|||||||||||||||||
Zhenhai Refining and Chemical ethylene expansion project
|
26,787
|
309
|
1,499
|
1,808
|
12
|
%
|
Self-financing
|
–
|
|||||||||||||||||
Western Sichuan Gas Field Leikoupo Formation Gas Reservoir Development and Construction Project
|
9,961
|
51
|
973
|
1,024
|
10
|
%
|
Bank loans & self-financing
|
6
|
16 |
RIGHT-OF-USE ASSETS
|
Land
RMB million
|
Others
RMB million
|
Total
RMB million
|
||||||||||
Cost:
|
||||||||||||
Balance at 31 December 2018
|
—
|
—
|
—
|
|||||||||
Change in accounting policy
|
180,074
|
27,381
|
207,455
|
|||||||||
Balance at 1 January 2019
|
180,074
|
27,381
|
207,455
|
|||||||||
Additions for the year
|
1,072
|
7,555
|
8,627
|
|||||||||
Decreases for the year
|
(5,014
|
)
|
(748
|
)
|
(5,762
|
)
|
||||||
Balance at 31 December 2019
|
176,132
|
34,188
|
210,320
|
|||||||||
Accumulated depreciation:
|
||||||||||||
Balance at 31 December 2018
|
—
|
—
|
—
|
|||||||||
Change in accounting policy
|
–
|
–
|
–
|
|||||||||
Balance at 1 January 2019
|
–
|
–
|
–
|
|||||||||
Additions for the year
|
6,578
|
5,728
|
12,306
|
|||||||||
Decreases for the year
|
(11
|
)
|
(26
|
)
|
(37
|
)
|
||||||
Balance at 31 December 2019
|
6,567
|
5,702
|
12,269
|
|||||||||
Provision for impairment losses:
|
||||||||||||
Balance at 31 December 2018
|
—
|
—
|
—
|
|||||||||
Financial Statements (PRC)
|
||||||||||||
Change in accounting policy
|
–
|
–
|
–
|
|||||||||
Balance at 1 January 2019
|
–
|
–
|
–
|
|||||||||
Additions for the year
|
–
|
–
|
–
|
|||||||||
Decreases for the year
|
–
|
–
|
–
|
|||||||||
Balance at 31 December 2019
|
–
|
–
|
–
|
|||||||||
Net book value:
|
||||||||||||
Balance at 31 December 2019
|
169,565
|
28,486
|
198,051
|
|||||||||
Balance at 31 December 2018
|
—
|
—
|
—
|
Land
RMB million
|
Others
RMB million
|
Total
RMB million
|
||||||||||
Cost:
|
||||||||||||
Balance at 31 December 2018
|
—
|
—
|
—
|
|||||||||
Change in accounting policy
|
119,142
|
634
|
119,776
|
|||||||||
Balance at 1 January 2019
|
119,142
|
634
|
119,776
|
|||||||||
Additions for the year
|
29
|
624
|
653
|
|||||||||
Decreases for the year
|
(3,098
|
)
|
(137
|
)
|
(3,235
|
)
|
||||||
Balance at 31 December 2019
|
116,073
|
1,121
|
117,194
|
|||||||||
Accumulated depreciation:
|
||||||||||||
Balance at 31 December 2018
|
—
|
—
|
—
|
|||||||||
Change in accounting policy
|
–
|
–
|
–
|
|||||||||
Balance at 1 January 2019
|
–
|
–
|
–
|
|||||||||
Additions for the year
|
3,801
|
584
|
4,385
|
|||||||||
Decreases for the year
|
(5
|
)
|
(18
|
)
|
(23
|
)
|
||||||
Balance at 31 December 2019
|
3,796
|
566
|
4,362
|
|||||||||
Provision for impairment losses:
|
||||||||||||
Balance at 31 December 2018
|
—
|
—
|
—
|
|||||||||
Change in accounting policy
|
–
|
–
|
–
|
|||||||||
Balance at 1 January 2019
|
–
|
–
|
–
|
|||||||||
Additions for the year
|
–
|
–
|
–
|
|||||||||
Decreases for the year
|
–
|
–
|
–
|
|||||||||
Balance at 31 December 2019
|
–
|
–
|
–
|
|||||||||
Net book value:
|
||||||||||||
Balance at 31 December 2019
|
112,277
|
555
|
112,832
|
|||||||||
Balance at 31 December 2018
|
—
|
—
|
—
|
17 |
INTANGIBLE ASSETS
|
Land use rights
|
Patents
|
Non-patent technology
|
Operation rights
|
Others
|
Total
|
|||||||||||||||||||
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
|||||||||||||||||||
Cost:
|
||||||||||||||||||||||||
Balance at 1 January 2019
|
84,731
|
5,230
|
4,029
|
52,216
|
5,265
|
151,471
|
||||||||||||||||||
Additions for the year
|
8,252
|
114
|
1,002
|
1,494
|
643
|
11,505
|
||||||||||||||||||
Decreases for the year
|
(423
|
)
|
–
|
–
|
(161
|
)
|
(241
|
)
|
(825
|
)
|
||||||||||||||
Balance at 31 December 2019
|
92,560
|
5,344
|
5,031
|
53,549
|
5,667
|
162,151
|
||||||||||||||||||
Accumulated amortisation:
|
||||||||||||||||||||||||
Balance at 1 January 2019
|
19,986
|
3,397
|
2,997
|
17,137
|
3,200
|
46,717
|
||||||||||||||||||
Additions for the year
|
2,655
|
204
|
278
|
2,357
|
448
|
5,942
|
||||||||||||||||||
Decreases for the year
|
(118
|
)
|
–
|
–
|
(103
|
)
|
(142
|
)
|
(363
|
)
|
||||||||||||||
Balance at 31 December 2019
|
22,523
|
3,601
|
3,275
|
19,391
|
3,506
|
52,296
|
||||||||||||||||||
Provision for impairment losses:
|
||||||||||||||||||||||||
Balance at 1 January 2019
|
231
|
482
|
24
|
145
|
17
|
899
|
||||||||||||||||||
Additions for the year
|
12
|
–
|
3
|
–
|
–
|
15
|
||||||||||||||||||
Decreases for the year
|
(15
|
)
|
–
|
–
|
–
|
–
|
(15
|
)
|
||||||||||||||||
Balance at 31 December 2019
|
228
|
482
|
27
|
145
|
17
|
899
|
||||||||||||||||||
Balance at 31 December 2019
|
69,809
|
1,261
|
1,729
|
34,013
|
2,144
|
108,956
|
||||||||||||||||||
Balance at 31 December 2018
|
64,514
|
1,351
|
1,008
|
34,934
|
2,048
|
103,855
|
18 |
GOODWILL
|
Name of investees
|
Principal activities
|
At 31 December 2019
RMB million
|
At 31 December 2018
RMB million
|
Sinopec Zhenhai Refining and Chemical Branch (“Sinopec Zhenhai”)
|
Manufacturing of intermediate petrochemical products and petroleum products
|
4,043
|
4,043
|
Shanghai SECCO Petrochemical Company Limited (“Shanghai SECCO”)
|
Production and sale of petrochemical products
|
2,541
|
2,541
|
Sinopec Beijing Yanshan Petrochemical Branch (“Sinopec Yanshan”)
|
Manufacturing of intermediate petrochemical products and petroleum products
|
1,004
|
1,004
|
Other units without individual significant goodwill
|
1,109
|
1,088
|
|
Total
|
8,697
|
8,676
|
19 |
LONG-TERM DEFERRED EXPENSES
|
20 |
DEFERRED TAX ASSETS AND LIABILITIES
|
Deferred tax assets
|
Deferred tax liabilities
|
|||||||||||||||
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||||||||
Receivables and inventories
|
2,546
|
2,563
|
–
|
–
|
||||||||||||
Payables
|
1,142
|
1,808
|
–
|
–
|
||||||||||||
Cash flow hedges
|
116
|
1,131
|
(384
|
)
|
(27
|
)
|
||||||||||
Fixed assets
|
16,463
|
15,427
|
(12,317
|
)
|
(8,666
|
)
|
||||||||||
Tax value of losses carried forward
|
3,594
|
3,709
|
–
|
–
|
||||||||||||
Other equity instrument investments
|
131
|
117
|
(7
|
)
|
(1
|
)
|
||||||||||
Intangible assets
|
595
|
474
|
(508
|
)
|
(535
|
)
|
||||||||||
Others
|
318
|
174
|
(882
|
)
|
(428
|
)
|
||||||||||
Deferred tax assets/(liabilities)
|
24,905
|
25,403
|
(14,098
|
)
|
(9,657
|
)
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Deferred tax assets
|
7,289
|
3,709
|
||||||
Deferred tax liabilities
|
7,289
|
3,709
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Deferred tax assets
|
17,616
|
21,694
|
||||||
Deferred tax liabilities
|
6,809
|
5,948
|
21 |
OTHER NON-CURRENT ASSETS
|
22 |
DETAILS OF IMPAIRMENT LOSSES
|
Note
|
Balance at 1 January 2019
|
Provision for the year
|
Written back for the year
|
Written off for the year
|
Other increase/ (decrease)
|
Balance at 31 December 2019
|
||||||||||||||||||||||
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
RMB million
|
|||||||||||||||||||||||
Allowance for doubtful accounts
|
||||||||||||||||||||||||||||
Included: Accounts receivable
|
8
|
606
|
1,566
|
(283
|
)
|
(41
|
)
|
–
|
1,848
|
|||||||||||||||||||
Prepayments
|
10
|
53
|
35
|
(5
|
)
|
(3
|
)
|
–
|
80
|
|||||||||||||||||||
Other receivables
|
11
|
1,481
|
165
|
(167
|
)
|
(24
|
)
|
1
|
1,456
|
|||||||||||||||||||
2,140
|
1,766
|
(455
|
)
|
(68
|
)
|
1
|
3,384
|
|||||||||||||||||||||
Inventories
|
12
|
6,376
|
1,616
|
(189
|
)
|
(5,233
|
)
|
12
|
2,582
|
|||||||||||||||||||
Long-term equity investments
|
13
|
1,686
|
–
|
–
|
(1
|
)
|
25
|
1,710
|
||||||||||||||||||||
Fixed assets
|
14
|
79,063
|
196
|
–
|
(1,692
|
)
|
(27
|
)
|
77,540
|
|||||||||||||||||||
Construction in progress
|
15
|
1,854
|
135
|
–
|
(110
|
)
|
(35
|
)
|
1,844
|
|||||||||||||||||||
Intangible assets
|
17
|
899
|
–
|
–
|
–
|
–
|
899
|
|||||||||||||||||||||
Goodwill
|
18
|
7,861
|
–
|
–
|
–
|
–
|
7,861
|
|||||||||||||||||||||
Others
|
102
|
1
|
(17
|
)
|
(81
|
)
|
1
|
6
|
||||||||||||||||||||
Total
|
99,981
|
3,714
|
(661
|
)
|
(7,185
|
)
|
(23
|
)
|
95,826
|
23 |
SHORT-TERM LOANS
|
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||
Original currency million
|
Exchange rates
|
RMB million
|
Original currency million Exchange rates
|
RMB million
|
Original currency million
|
|||||||||||||||||||
Short-term bank loans
|
25,709
|
17,088
|
||||||||||||||||||||||
– Renminbi loans
|
25,619
|
13,201
|
||||||||||||||||||||||
– US Dollar loans
|
13
|
6.9762
|
90
|
566
|
6.8632
|
3,887
|
||||||||||||||||||
Short-term other loans
|
22
|
300
|
||||||||||||||||||||||
– Renminbi loans
|
22
|
300
|
||||||||||||||||||||||
Short-term loans from Sinopec Group Company and fellow subsidiaries
|
5,465
|
27,304
|
||||||||||||||||||||||
– Renminbi loans
|
2,709
|
3,061
|
||||||||||||||||||||||
– US Dollar loans
|
321
|
6.9762
|
2,236
|
3,319
|
6.8632
|
22,780
|
||||||||||||||||||
– Hong Kong Dollar loans
|
553
|
0.8958
|
495
|
1,645
|
0.8762
|
1,441
|
||||||||||||||||||
– Euro loans
|
3
|
7.8155
|
25
|
3
|
7.8473
|
22
|
||||||||||||||||||
Total
|
31,196
|
44,692
|
24 |
BILLS PAYABLE
|
25 |
ACCOUNTS PAYABLE
|
26 |
CONTRACT LIABILITIES
|
27 |
EMPLOYEE BENEFITS PAYABLE
|
28 |
TAXES PAYABLE
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Value-added tax payable
|
4,932
|
9,810
|
||||||
Consumption tax payable
|
52,863
|
59,944
|
||||||
Income tax payable
|
3,264
|
6,699
|
||||||
Mineral resources compensation fee payable
|
136
|
138
|
||||||
Other taxes
|
8,144
|
10,469
|
||||||
Total
|
69,339
|
87,060
|
29 |
OTHER PAYABLES
|
30 |
NON-CURRENT LIABILITIES DUE WITHIN ONE YEAR
|
At 31 December 2019
|
At 31 December 2018
|
|||||||||||||||||||||||
Original currency million
|
Exchange rates
|
RMB million
|
Original currency million
|
Exchange rates
|
RMB million
|
|||||||||||||||||||
Long-term bank loans
|
||||||||||||||||||||||||
– Renminbi loans
|
1,765
|
12,039
|
||||||||||||||||||||||
– US Dollar loans
|
4
|
6.9762
|
25
|
5
|
6.8632
|
35
|
||||||||||||||||||
Long-term loans from Sinopec Group Company and fellow subsidiaries
|
||||||||||||||||||||||||
– Renminbi loans
|
37,824
|
4,361
|
||||||||||||||||||||||
Long-term loans due within one year
|
39,614
|
16,435
|
||||||||||||||||||||||
Debentures payable due within one year
|
||||||||||||||||||||||||
– Renminbi debentures
|
13,000
|
–
|
||||||||||||||||||||||
Debentures payable due within one year
|
13,000
|
–
|
||||||||||||||||||||||
Lease liabilities due within one year
|
15,198
|
—
|
||||||||||||||||||||||
Others
|
1,678
|
1,015
|
||||||||||||||||||||||
Non-current liabilities due within one year
|
69,490
|
17,450
|
31 |
LONG-TERM LOANS
|
At 31 December 2019
|
At 31 December 2018
|
|||||||
Interest rate and final maturity
|
Original currency million
|
Exchange rates
|
RMB million
|
Original currency million
|
Exchange rates
|
RMB million
|
||
Long-term bank loans
|
||||||||
– Renminbi loans
|
Interest rates ranging from interest 1.08% to 5.23% per annum at 31 December 2019 with maturities through 2034
|
31,714
|
31,025
|
|||||
– US Dollar loans
|
Interest rates ranging from interest 1.55% to 4.29% per annum at 31 December 2019 with maturities through 2031
|
11
|
6.9762
|
75
|
16
|
6.8632
|
109
|
|
Less: Current portion
|
(1,790)
|
(12,074)
|
||||||
Long-term bank loans
|
29,999
|
19,060
|
||||||
Long-term loans from Sinopec Group Company and fellow subsidiaries
|
||||||||
– Renminbi loans
|
Interest rates ranging from interest free to 5.50% per annum at 31 December 2019 with maturities through 2034
|
47,450
|
46,877
|
|||||
Less: Current portion
|
(37,824)
|
(4,361)
|
||||||
Long-term loans from Sinopec Group Company and fellow subsidiaries
|
9,626
|
42,516
|
||||||
Total
|
39,625
|
61,576
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Between one and two years
|
5,089
|
40,004
|
||||||
Between two and five years
|
12,123
|
11,999
|
||||||
After five years
|
22,413
|
9,573
|
||||||
Total
|
39,625
|
61,576
|
32 |
DEBENTURES PAYABLE
|
At 31 December
|
At 31 December
|
|||||||
2019
|
2018
|
|||||||
RMB million
|
RMB million
|
|||||||
Debentures payable:
|
||||||||
– Corporate Bonds (i)
|
32,157
|
31,951
|
||||||
Less: Current portion
|
(13,000
|
)
|
–
|
|||||
Total
|
19,157
|
31,951
|
(i) |
These corporate bonds are carried at amortised cost, including USD denominated corporate bonds of RMB 12,157 million, and RMB denominated corporate bonds of RMB 20,000
million (2018: USD denominated corporate bonds of RMB 11,951 million, and RMB denominated corporate bonds of RMB 20,000 million). At 31 December 2019, corporate bonds of RMB 12,157 million (2018: RMB 11,951 million) are guaranteed by
Sinopec Group Company.
|
33 |
LEASE LIABILITY
|
The Group
|
||||||||
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Lease liabilities
|
192,872
|
—
|
||||||
Deduct: Current portion of lease liabilities (Note 30)
|
15,198
|
—
|
||||||
Total
|
177,674
|
—
|
34 |
PROVISIONS
|
The Group
|
||||
RMB million
|
||||
Balance at 1 January 2019
|
42,007
|
|||
Provision for the year
|
1,408
|
|||
Accretion expenses
|
1,418
|
|||
Financial Statements (PRC)
|
||||
Decrease for the year
|
(2,439
|
)
|
||
Exchange adjustments
|
44
|
|||
Balance at 31 December 2019
|
42,438
|
35 |
OTHER NON-CURRENT LIABILITIES
|
36 |
SHARE CAPITAL
|
At 31 December
|
At 31 December
|
|||||||
2019
|
2018
|
|||||||
RMB million
|
RMB million
|
|||||||
Registered, issued and fully paid:
|
||||||||
95,557,771,046 listed A shares (2018: 95,557,771,046) of RMB 1.00 each
|
95,558
|
95,558
|
||||||
25,513,438,600 listed H shares (2018: 25,513,438,600) of RMB 1.00 each
|
25,513
|
25,513
|
||||||
Total
|
121,071
|
121,071
|
36 |
SHARE CAPITAL (Continued)
|
37 |
CAPITAL RESERVE
|
RMB million
|
||||
Balance at 1 January 2019
|
119,192
|
|||
Transaction with minority interests
|
2,933
|
|||
Others
|
2
|
|||
Balance at 31 December 2019
|
122,127
|
38 |
OTHER COMPREHENSIVE INCOME
|
(a) |
The changes of other comprehensive income in consolidated income statement
|
2019
|
|||
Before-tax amount
|
Tax effect
|
Net-of-tax amount
|
|
RMB million
|
RMB million
|
RMB million
|
|
Cash flow hedges:
|
|||
Effective portion of changes in fair value of hedging instruments recognised during the year
|
5,258
|
(974)
|
4,284
|
Less: Reclassification adjustments for amounts transferred to the consolidated income statement
|
(853)
|
196
|
(657)
|
Subtotal
|
6,111
|
(1,170)
|
4,941
|
Changes in fair value of other equity instrument investments
|
(39)
|
8
|
(31)
|
Subtotal
|
(39)
|
8
|
(31)
|
Other comprehensive income that can be converted into profit or loss under the equity method
|
(810)
|
–
|
(810)
|
Subtotal
|
(810)
|
–
|
(810)
|
Foreign currency translation differences
|
1,480
|
–
|
1,480
|
Subtotal
|
1,480
|
–
|
1,480
|
Other comprehensive income
|
6,742
|
(1,162)
|
5,580
|
2018
|
|||
Before-tax amount
|
Tax effect
|
Net-of-tax amount
|
|
RMB million
|
RMB million
|
RMB million
|
|
Cash flow hedges:
|
|||
Effective portion of changes in fair value of hedging instruments recognised during the year
|
(12,500)
|
2,159
|
(10,341)
|
(Less)/Add: Reclassification adjustments for amounts transferred to the consolidated income statement
|
(730)
|
130
|
(600)
|
Subtotal
|
(11,770)
|
2,029
|
(9,741)
|
Changes in fair value of other equity instrument investments
|
(41)
|
(12)
|
(53)
|
Subtotal
|
(41)
|
(12)
|
(53)
|
Other comprehensive income that can be converted into profit or loss under the equity method
|
(240)
|
11
|
(229)
|
Subtotal
|
(240)
|
11
|
(229)
|
Foreign currency translation differences
|
3,399
|
–
|
3,399
|
Subtotal
|
3,399
|
–
|
3,399
|
Other comprehensive income
|
(8,652)
|
2,028
|
(6,624)
|
38 |
OTHER COMPREHENSIVE INCOME (Continued)
|
(b) |
The change of each item in other comprehensive income
|
Equity Attributable to shareholders of the company
|
||||||||||||||||||||||||||||||||
Other comprehensive income that can be converted into profit or loss under the equity method RMB million
|
Changes in fair value of available-for-sale financial assets RMB million
|
Changes in fair value of other equity instrument investments RMB million
|
Cash flow hedges RMB million
|
Foreign currency translation differences RMB million
|
Subtotal RMB million
|
Minority interests RMB million
|
Total other comprehensive income RMB million
|
|||||||||||||||||||||||||
31 December 2017
|
(3,481
|
)
|
57
|
—
|
(510
|
)
|
(479
|
)
|
(4,413
|
)
|
(2,783
|
)
|
(7,196
|
)
|
||||||||||||||||||
Change in accounting policy
|
–
|
(57
|
)
|
45
|
–
|
–
|
(12
|
)
|
–
|
(12
|
)
|
|||||||||||||||||||||
1 January 2018
|
(3,481
|
)
|
—
|
45
|
(510
|
)
|
(479
|
)
|
(4,425
|
)
|
(2,783
|
)
|
(7,208
|
)
|
||||||||||||||||||
Changes in 2018
|
(183
|
)
|
—
|
(41
|
)
|
(4,407
|
)
|
2,282
|
(2,349
|
)
|
994
|
(1,355
|
)
|
|||||||||||||||||||
31 December 2018
|
(3,664
|
)
|
—
|
4
|
(4,917
|
)
|
1,803
|
(6,774
|
)
|
(1,789
|
)
|
(8,563
|
)
|
|||||||||||||||||||
1 January 2019
|
(3,664
|
)
|
—
|
4
|
(4,917
|
)
|
1,803
|
(6,774
|
)
|
(1,789
|
)
|
(8,563
|
)
|
|||||||||||||||||||
Changes in 2019
|
(424
|
)
|
—
|
(20
|
)
|
5,954
|
943
|
6,453
|
220
|
6,673
|
||||||||||||||||||||||
31 December 2019
|
(4,088
|
)
|
—
|
(16
|
)
|
1,037
|
2,746
|
(321
|
)
|
(1,569
|
)
|
(1,890
|
)
|
39 |
SURPLUS RESERVES
|
The Group
|
||||||||||||
Statutory
surplus reserve
RMB million
|
Discretionary
surplus reserves
RMB million
|
Total
RMB million
|
||||||||||
Balance at 1 January 2019
|
86,678
|
117,000
|
203,678
|
|||||||||
Appropriation
|
3,745
|
–
|
3,745
|
|||||||||
Balance at 31 December 2019
|
90,423
|
117,000
|
207,423
|
(a) |
10% of the net profit is transferred to the statutory surplus reserve. In the event that the reserve balance reaches 50% of the registered capital, no transfer is needed;
|
(b) |
After the transfer to the statutory surplus reserve, a transfer to discretionary surplus reserve can be made upon the passing of a resolution at the shareholders'
meeting.
|
40 |
OPERATING INCOME AND OPERATING COSTS
|
The Group
|
The Company
|
|||||||||||||||
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
|||||||||||||
Income from principal operations
|
2,900,488
|
2,825,613
|
984,185
|
1,022,195
|
||||||||||||
Income from other operations
|
65,705
|
65,566
|
37,087
|
36,298
|
||||||||||||
Total
|
2,966,193
|
2,891,179
|
1,021,272
|
1,058,493
|
||||||||||||
Operating costs
|
2,488,852
|
2,401,012
|
799,566
|
812,355
|
2019
RMB million
|
2018
RMB million
|
|||||||
Income from principal operations
|
2,900,488
|
2,825,613
|
||||||
Gasoline
|
699,202
|
711,236
|
||||||
Diesel
|
615,342
|
594,008
|
||||||
Crude oil
|
553,848
|
519,910
|
||||||
Basic chemical feedstock
|
214,911
|
250,884
|
||||||
Kerosene
|
191,636
|
168,823
|
||||||
Synthetic resin
|
124,271
|
124,618
|
||||||
Synthetic fiber monomers and polymers
|
80,100
|
77,572
|
||||||
Natural gas
|
53,839
|
43,205
|
||||||
Others (i)
|
367,339
|
335,357
|
||||||
Income from other operations
|
65,705
|
65,566
|
||||||
Sale of materials and others
|
64,489
|
64,503
|
||||||
Rental income
|
1,216
|
1,063
|
||||||
Total
|
2,966,193
|
2,891,179
|
(i) |
Others are primarily liquefied petroleum gas and other refinery and chemical by-products and joint products.
|
2019
RMB million
|
2018
RMB million
|
|||||||
Consumption tax
|
202,671
|
201,901
|
||||||
City construction tax
|
16,247
|
18,237
|
||||||
Education surcharge
|
12,011
|
13,187
|
||||||
Resources tax
|
5,883
|
6,021
|
||||||
Others
|
5,723
|
7,152
|
||||||
Total
|
242,535
|
246,498
|
42 |
FINANCIAL EXPENSES
|
2019
RMB million
|
2018
RMB million
|
|||||||
Interest expenses incurred
|
6,954
|
6,376
|
||||||
Less: Capitalised interest expenses
|
1,015
|
493
|
||||||
Add: Interest expense on lease liabilities
|
9,646
|
—
|
||||||
Net interest expenses
|
15,585
|
5,883
|
||||||
Accretion expenses (Note 34)
|
1,418
|
1,438
|
||||||
Interest income
|
(7,206
|
)
|
(7,726
|
)
|
||||
Net foreign exchange loss/(gain)
|
170
|
(596
|
)
|
|||||
Total
|
9,967
|
(1,001
|
)
|
43 |
CLASSIFICATION OF EXPENSES BY NATURE
|
2019
RMB million
|
2018
RMB million
|
|||||||
Purchased crude oil, products and operating supplies and expenses
|
2,380,907
|
2,292,983
|
||||||
Personnel expenses
|
81,482
|
77,721
|
||||||
Depreciation, depletion and amortisation
|
108,812
|
109,967
|
||||||
Exploration expenses (including dry holes)
|
10,510
|
10,744
|
||||||
Other expenses
|
52,674
|
61,083
|
||||||
Total
|
2,634,385
|
2,552,498
|
44 |
RESEARCH AND DEVELOPMENT EXPENSES
|
45 |
EXPLORATION EXPENSES
|
46 |
OTHER INCOME
|
47 |
INVESTMENT INCOME
|
The Group
|
The Company
|
|||||||||||||||
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
|||||||||||||
Income from investment of subsidiaries accounted for under cost method
|
–
|
–
|
25,416
|
25,390
|
||||||||||||
Income from investment accounted for under equity method
|
12,777
|
13,974
|
3,579
|
4,259
|
||||||||||||
Investment income/(loss) from disposal of long-term equity investments
|
185
|
397
|
(1,543
|
)
|
(2,768
|
)
|
||||||||||
Dividend income from holding of other equity instrument investments
|
492
|
515
|
53
|
14
|
||||||||||||
Investment (loss)/income from holding/disposal of financial assets and liabilities and derivative financial instruments at fair
value through profit or loss
|
(1,467
|
)
|
(1,940
|
)
|
142
|
692
|
||||||||||
Gain/(loss) from ineffective portion of cash flow hedges
|
587
|
(1,604
|
)
|
1
|
7
|
|||||||||||
Others
|
54
|
86
|
414
|
742
|
||||||||||||
Total
|
12,628
|
11,428
|
28,062
|
28,336
|
48 |
(LOSSES)/GAINS FROM CHANGES IN FAIR VALUE
|
2019
RMB million
|
2018
RMB million
|
|||||||
Net fair value (losses)/gains on financial assets and financial liabilities at fair value through profit or loss
|
(2,702
|
)
|
3,008
|
|||||
Unrealised losses from ineffective portion cash flow hedges, net
|
(809
|
)
|
(374
|
)
|
||||
Others
|
–
|
22
|
||||||
Total
|
(3,511
|
)
|
2,656
|
49 |
IMPAIRMENT LOSSES
|
2019
RMB million
|
2018
RMB million
|
|||||||
Prepayments
|
30
|
–
|
||||||
Inventories
|
1,427
|
5,421
|
||||||
Long-term equity investment
|
–
|
7
|
||||||
Fixed assets
|
196
|
6,149
|
||||||
Construction in progress
|
135
|
28
|
||||||
Others
|
1
|
–
|
||||||
Total
|
1,789
|
11,605
|
50 |
NON-OPERATING INCOME
|
2019
RMB million
|
2018
RMB million
|
|||||||
Government grants
|
884
|
788
|
||||||
Others
|
1,714
|
1,282
|
||||||
Total
|
2,598
|
2,070
|
51 |
NON-OPERATING EXPENSES
|
2019
RMB million
|
2018
RMB million
|
|||||||
Fines, penalties and compensation
|
173
|
276
|
||||||
Donations
|
209
|
180
|
||||||
Others
|
2,225
|
2,586
|
||||||
Total
|
2,607
|
3,042
|
52 |
INCOME TAX EXPENSE
|
2019
RMB million
|
2018
RMB million
|
|||||||
Provision for income tax for the year
|
14,976
|
27,176
|
||||||
Deferred taxation
|
3,385
|
(6,244
|
)
|
|||||
Under-provision for income tax in respect of preceding year
|
(467
|
)
|
(719
|
)
|
||||
Total
|
17,894
|
20,213
|
2019
RMB million
|
2018
RMB million
|
|||||||
Profit before taxation
|
90,016
|
100,502
|
||||||
Expected income tax expense at a tax rate of 25%
|
22,504
|
25,126
|
||||||
Tax effect of non-deductible expenses
|
2,278
|
1,989
|
||||||
Tax effect of non-taxable income
|
(4,458
|
)
|
(5,019
|
)
|
||||
Tax effect of preferential tax rate (i)
|
(2,003
|
)
|
(1,259
|
)
|
||||
Effect of income taxes at foreign operations
|
(312
|
)
|
77
|
|||||
Tax effect of utilisation of previously unrecognised tax losses and temporary differences
|
(335
|
)
|
(779
|
)
|
||||
Tax effect of tax losses not recognised
|
498
|
609
|
||||||
Write-down of deferred tax assets
|
189
|
188
|
||||||
Adjustment for under provision for income tax in respect of preceding years
|
(467
|
)
|
(719
|
)
|
||||
Actual income tax expense
|
17,894
|
20,213
|
(i) |
The provision for PRC current income tax is based on a statutory income tax rate of 25% of the assessable income of the Group as determined in accordance with the
relevant income tax rules and regulations of the PRC, except for certain entities of the Group in western regions in the PRC are taxed at preferential income tax rate of
|
53 |
DIVIDENDS
|
(a) |
Dividends of ordinary shares declared after the balance sheet date
|
(b) |
Dividends of ordinary shares declared during the year
|
54 |
SUPPLEMENTAL INFORMATION TO THE CASH FLOW STATEMENT
|
(a) |
Reconciliation of net profit to cash flows from operating activities:
|
2019
RMB million
|
2018
RMB million
|
|||||||
Net profit
|
72,122
|
80,289
|
||||||
Add: Impairment losses on assets
|
1,789
|
11,605
|
||||||
Credit impairment losses
|
1,264
|
141
|
||||||
Depreciation of right-of-use assets
|
12,246
|
—
|
||||||
Depreciation of fixed assets
|
87,612
|
99,462
|
||||||
Amortisation of intangible assets and long-term deferred expenses
|
8,954
|
10,505
|
||||||
Dry hole costs written off
|
5,831
|
6,921
|
||||||
Net loss on disposal of non-current assets
|
1,918
|
1,526
|
||||||
Fair value loss/(gain)
|
3,511
|
(2,656
|
)
|
|||||
Financial expenses
|
10,352
|
(359
|
)
|
|||||
Investment income
|
(12,628
|
)
|
(11,428
|
)
|
||||
Decrease/(increase) in deferred tax assets
|
3,124
|
(5,079
|
)
|
|||||
Increase/(decrease) in deferred tax liabilities
|
261
|
(1,165
|
)
|
|||||
Increase in inventories
|
(9,285
|
)
|
(3,312
|
)
|
||||
Safety fund reserve
|
69
|
909
|
||||||
Increase in operating receivables
|
(11,802
|
)
|
(1,043
|
)
|
||||
Decrease in operating payables
|
(21,918
|
)
|
(10,448
|
)
|
||||
Net cash flow from operating activities
|
153,420
|
175,868
|
(b) |
Net change in cash:
|
2019
RMB million
|
2018
RMB million
|
|||||||
Cash balance at the end of the year
|
60,313
|
111,922
|
||||||
Less: Cash at the beginning of the year
|
111,922
|
113,218
|
||||||
Net decrease of cash
|
(51,609
|
)
|
(1,296
|
)
|
(c) |
The analysis of cash held by the Group is as follows:
|
2019
RMB million
|
2018
RMB million
|
|||||||
Cash at bank and on hand
|
||||||||
– Cash on hand
|
14
|
82
|
||||||
– Demand deposits
|
60,299
|
111,840
|
||||||
Cash at the end of the year
|
60,313
|
111,922
|
(d) |
Other cash paid relating to financing activities:
|
2019
RMB million
|
2018
RMB million
|
|||||||
Repayments of lease liabilities
|
16,859
|
–
|
||||||
Others
|
328
|
436
|
||||||
Total
|
17,187
|
436
|
55 |
RELATED PARTIES AND RELATED PARTY TRANSACTIONS
|
(1) |
Related parties having the ability to exercise control over the Group
|
The name of the company
|
:
|
China Petrochemical Corporation
|
Unified social credit identifier
|
:
|
9111000010169286X1
|
Registered address
|
:
|
No. 22, Chaoyangmen North Street, Chaoyang District, Beijing
|
Principal activities
|
:
|
Exploration, production, storage and transportation (including pipeline transportation), sales and utilisation of crude oil and natural gas; refining; wholesale and retail of
gasoline, kerosene and diesel; production, sales, storage and transportation of petrochemical and other chemical products; industrial investment and investment management; exploration, construction, installation and maintenance of petroleum
and petrochemical constructions and equipments; manufacturing electrical equipment; research, development, application and consulting services of information technology and alternative energy products; import & export of goods and
technology.
|
Relationship with the Group
|
:
|
Ultimate holding company
|
Types of legal entity
|
:
|
State-owned
|
Authorised representative
|
:
|
Zhang Yuzhuo
|
Registered capital
|
:
|
RMB 326,547 million
|
(2) |
Related parties not having the ability to exercise control over the Group
|
55 |
RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued)
|
(3) |
The principal related party transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures, which were carried out in
the ordinary course of business, are as follows:
|
The Group
|
|||
Note
|
2019
RMB million
|
2018
RMB million
|
|
Sales of goods
|
(i)
|
295,532
|
272,789
|
Purchases
|
(ii)
|
197,308
|
192,224
|
Transportation and storage
|
(iii)
|
8,206
|
7,319
|
Exploration and development services
|
(iv)
|
33,310
|
23,489
|
Production related services
|
(v)
|
38,668
|
28,472
|
Ancillary and social services
|
(vi)
|
3,098
|
6,664
|
Operating lease charges for land
|
(vii)
|
–
|
7,765
|
Operating lease charges for buildings
|
(vii)
|
–
|
521
|
Other operating lease charges
|
(vii)
|
–
|
869
|
Agency commission income
|
(viii)
|
116
|
113
|
Interest income
|
(ix)
|
1,066
|
848
|
Interest expense
|
(x)
|
1,334
|
1,110
|
Net deposits withdrawn from related parties
|
(ix)
|
5,350
|
6,457
|
Net funds obtained from related parties
|
(xi)
|
3,438
|
31,684
|
(i) |
Sales of goods represent the sale of crude oil, intermediate petrochemical products, petroleum products and ancillary materials.
|
(ii) |
Purchases represent the purchase of materials and utility supplies directly related to the Group's operations such as the procurement of raw and ancillary materials and
related services, supply of water, electricity and gas.
|
(iii) |
Transportation and storage represent the cost for the use of railway, road and marine transportation services, pipelines, loading, unloading and storage facilities. (iv)
Exploration and development services comprise direct costs incurred in the exploration and development such as geophysical, drilling, well testing and well measurement services.
|
(v) |
Production related services represent ancillary services rendered in relation to the Group's operations such as equipment repair and general maintenance, insurance
premium, technical research, communications, firefighting, security, product quality testing and analysis, information technology, design and engineering, construction of oilfield ground facilities, refineries and chemical plants,
manufacture of replacement parts and machinery, installation, project management and environmental protection, and management services.
|
(vi) |
Ancillary and social services represent expenditures for social welfare and support services such as educational facilities, media communication services, sanitation,
accommodation, canteens and property maintenance.
|
(vii) |
Operating lease charges represent the rental incurred for operating leases in respect of land, buildings and equipment leased from Sinopec Group Company and fellow
subsidiaries, associates and joint ventures. No lease charges have incurred in the current year because of the adoption of the new lease standard.
|
55 |
RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued)
|
(3) |
The principal related party transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures, which were
carried out in the ordinary course of business, are as follows (Continued) :
|
(viii) |
Agency commission income represents commission earned for acting as an agent in respect of sales of products and purchase of materials for certain entities owned by
Sinopec Group Company.
|
(ix) |
Interest income represents interest received from deposits placed with Sinopec Finance and Sinopec Century Bright Capital Investment Limited, finance companies controlled
by Sinopec Group Company. The applicable interest rate is determined in accordance with the prevailing saving deposit rate.
|
(x) |
Interest expense represents interest charges on the loans obtained from Sinopec Group Company and fellow subsidiaries. (xi) The Group obtained loans, discounted bills and
others from Sinopec Group Company and fellow subsidiaries.
|
(a) |
The Company has entered into a non-exclusive "Agreement for Mutual Provision of Products and Ancillary Services" ("Mutual Provision Agreement") with Sinopec Group Company
effective from 1 January 2000 in which Sinopec Group Company has agreed to provide the Group with certain ancillary production services, construction services, information advisory services, supply services and other services and
products. While each of Sinopec Group Company and the Company is permitted to terminate the Mutual Provision Agreement upon at least six months' notice, Sinopec Group Company has agreed not to terminate the agreement if the Group is
unable to obtain comparable services from a third party. The pricing policy for these services and products provided by Sinopec Group Company to the Group is as follows:
|
• |
the government-prescribed price;
|
• |
where there is no government-prescribed price, the government-guidance price;
|
• |
where there is neither a government-prescribed price nor a government-guidance price, the market price; or
|
• |
where none of the above is applicable, the price to be agreed between the parties, which shall be based on a reasonable cost incurred in providing such services plus a
profit margin not exceeding 6%.
|
(b) |
The Company has entered into a non-exclusive "Agreement for Provision of Cultural and Educational, Health Care and Community Services" with Sinopec Group Company
effective from 1 January 2000 in which Sinopec Group Company has agreed to provide the Group with certain cultural, educational, health care and community services on the same pricing terms and termination conditions as agreed to in the
above Mutual Provision Agreement.
|
(c) |
The Company has entered into a number of lease agreements with Sinopec Group Company to lease certain lands and buildings effective on 1 January 2000. The lease term is
40 or 50 years for lands and 20 years for buildings, respectively. The Company and Sinopec Group Company can renegotiate the rental amount every three years for land. The Company and Sinopec Group Company can renegotiate the rental
amount for buildings every year. However such amount cannot exceed the market price as determined by an independent third party.
|
(d) |
The Company has entered into agreements with Sinopec Group Company effective from 1 January 2000 under which the Group has been granted the right to use certain
trademarks, patents, technology and computer software developed by Sinopec Group Company.
|
(e) |
The Company has entered into a service station franchise agreement with Sinopec Group Company effective from 1 January 2000 under which its service stations and retail
stores would exclusively sell the refined products supplied by the Group.
|
(f) |
On the basis of a series of continuing connected transaction agreements signed in 2000, the Company and Sinopec Group Company have signed the Fifth Supplementary
Agreement and the Fourth Revised Memorandum of land use rights leasing contract on 24 August 2018, which took effect on 1 January 2019 and made adjustment to "Mutual Supply Agreement", "Agreement for Provision of Cultural and
Educational, Health Care and Community Services", "Buildings Leasing Contract", "Intellectual Property Contract" and "Land Use Rights Leasing Contract", etc.
|
55 |
RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued)
|
(4) |
Balances with Sinopec Group Company and fellow subsidiaries, associates and joint ventures
|
The ultimate holding company
|
Other related companies
|
|||||||||||||||
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||||||||
Cash at bank and on hand
|
–
|
–
|
35,707
|
41,057
|
||||||||||||
Bills receivable
|
–
|
–
|
–
|
74
|
||||||||||||
Accounts receivable
|
52
|
11
|
12,916
|
7,470
|
||||||||||||
Receivables financing
|
–
|
–
|
407
|
–
|
||||||||||||
Other receivables
|
8
|
33
|
11,424
|
6,901
|
||||||||||||
Prepayments and other current assets
|
6
|
–
|
1,285
|
731
|
||||||||||||
Other non-current assets
|
–
|
–
|
734
|
23,482
|
||||||||||||
Bills payable
|
17
|
16
|
3,801
|
1,991
|
||||||||||||
Accounts payable
|
94
|
3
|
21,384
|
15,520
|
||||||||||||
Contract liabilities
|
51
|
25
|
4,413
|
3,248
|
||||||||||||
Other payables
|
64
|
2
|
16,077
|
18,158
|
||||||||||||
Other non-current liabilities
|
–
|
–
|
–
|
12,470
|
||||||||||||
Short-term loans
|
–
|
–
|
5,465
|
27,304
|
||||||||||||
Long-term loans (including current portion) (Note)
|
–
|
–
|
47,450
|
46,877
|
||||||||||||
Lease liabilities (including current portion)
|
82,255
|
—
|
89,147
|
—
|
Note: |
As at 31 December 2019, the long-term borrowings (including current portion) mainly include an interest-free loan with a maturity period of 20 years amounting to RMB
35,560 million from Sinopec Group Company through Sinopec Finance. This borrowing is a special arrangement to reduce financing costs and improve liquidity of the Company during its initial global offering in 2000.
|
(5) |
Key management personnel emoluments
|
2019
RMB thousand
|
2018
RMB thousand
|
|||||||
Short-term employee benefits
|
9,209
|
5,745
|
||||||
Retirement scheme contributions
|
536
|
351
|
||||||
Total
|
9,745
|
6,096
|
56 |
PRINCIPAL ACCOUNTING ESTIMATES AND JUDGEMENTS
|
(a) |
Oil and gas properties and reserves
|
(b) |
Impairment for assets
|
(c) |
Depreciation
|
(d) |
Measurement of expected credit losses
|
(e) |
Allowance for diminution in value of inventories
|
57 |
PRINCIPAL SUBSIDIARIES
|
Full name of enterprise
|
Principal activities
|
Registered capital/ paid-up capital
|
Actual investment at 31 December 2019
|
Percentage of equity interest/voting right held by the Group
|
Minority Interests at 31 December 2019
|
million
|
million
|
%
|
RMB million
|
||
(a) Subsidiaries acquired through group restructuring:
|
|||||
China Petrochemical International Company Limited
|
Trading of petrochemical products
|
RMB 1,400
|
RMB 1,856
|
100.00
|
24
|
China International United Petroleum and Chemical Company Limited
|
Trading of crude oil and petrochemical products
|
RMB 5,000
|
RMB 6,585
|
100.00
|
4,593
|
Sinopec Catalyst Company Limited
|
Production and sale of catalyst products
|
RMB 1,500
|
RMB 2,424
|
100.00
|
298
|
Sinopec Yangzi Petrochemical Company Limited
|
Manufacturing of intermediate petrochemical products and petroleum products
|
RMB 15,651
|
RMB 15,651
|
100.00
|
–
|
Sinopec Pipeline Storage & Transportation Company Limited
|
Pipeline storage and transportation of crude oil
|
RMB 12,000
|
RMB 12,000
|
100.00
|
–
|
Sinopec Lubricant Company Limited
|
Production and sale of refined petroleum products, lubricant base oil, and petrochemical materials
|
RMB 3,374
|
RMB 3,374
|
100.00
|
70
|
Sinopec Yizheng Chemical Fibre Limited Liability Company
|
Production and sale of polyester chips and polyester fibres
|
RMB 4,000
|
RMB 6,713
|
100.00
|
–
|
Sinopec Marketing Co. Limited ("Marketing Company")
|
Marketing and distribution of refined petroleum products
|
RMB 28,403
|
RMB 20,000
|
70.42
|
70,528
|
Sinopec Kantons Holdings Limited ("Sinopec Kantons")
|
Provision of crude oil jetty services and natural gas pipeline transmission services
|
HKD 248
|
HKD 3,952
|
60.33
|
4,359
|
Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical")
|
Manufacturing of synthetic fibres, resin and plastics, intermediate petrochemical products and petroleum products
|
RMB 10,824
|
RMB 5,820
|
50.44
|
14,942
|
Fujian Petrochemical Company Limited ("Fujian Petrochemical") (i)
|
Manufacturing of plastics, intermediate petrochemical products and petroleum products
|
RMB 8,140
|
RMB 4,646
|
50.00
|
5,927
|
(b) Subsidiaries established by the Group:
|
|||||
Sinopec International Petroleum Exploration and Production Limited ("SIPL")
|
Investment in exploration, production and sale of petroleum and natural gas
|
RMB 8,000
|
RMB 8,000
|
100.00
|
8,669
|
Sinopec Overseas Investment Holding Limited ("SOIH")
|
Investment holding of overseas business
|
USD 1,662
|
USD 1,662
|
100.00
|
–
|
Sinopec Chemical Sales Company Limited
|
Marketing and distribution of petrochemical products
|
RMB 1,000
|
RMB 1,165
|
100.00
|
74
|
Sinopec Great Wall Energy & Chemical Company Limited
|
Coal chemical industry investment management, production and sale of coal chemical products
|
RMB 22,761
|
RMB 22,795
|
100.00
|
(88)
|
Sinopec Beihai Refining and Chemical Limited Liability Company
|
Import and processing of crude oil, production, storage and sale of petroleum products and petrochemical products
|
RMB 5,294
|
RMB 5,240
|
98.98
|
133
|
Sinopec Qingdao Refining and Chemical Company Limited
|
Manufacturing of intermediate petrochemical products and petroleum products
|
RMB 5,000
|
RMB 4,250
|
85.00
|
1,543
|
Sinopec-SK
|
Production, sale, research and development of ethylene and downstream byproducts
|
RMB 7,193
|
RMB 7,193
|
59.00
|
4,863
|
(c) Subsidiaries acquired through business combination under common control:
|
|||||
Sinopec Hainan Refining and Chemical Company Limited
|
Manufacturing of intermediate petrochemical products and petroleum products
|
RMB 9,628
|
RMB 7,205
|
75.00
|
4,479
|
Sinopec Qingdao Petrochemical Company Limited
|
Manufacturing of intermediate petrochemical products and petroleum products
|
RMB 1,595
|
RMB 7,233
|
100.00
|
–
|
Gaoqiao Petrochemical Company Limited
|
Manufacturing of intermediate petrochemical products and petroleum products
|
RMB 10,000
|
RMB 4,804
|
55.00
|
8,006
|
(d) Subsidiaries acquired through business combination not under common control:
|
|||||
Shanghai SECCO
|
Production and sale of petrochemical products
|
RMB 7,801
|
RMB 7,801
|
67.60
|
5,997
|
* |
The minority interests of subsidiaries which the Group holds 100% of equity interests at the end of the year are the minority interests of their subsidiaries.
|
(i) |
The Group consolidated the financial statements of the entity because it is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those return through its power over the entity.
|
57 |
PRINCIPAL SUBSIDIARIES (Continued)
|
Marketing Company
|
SIPL
|
Shanghai Petrochemical
|
Fujian Petrochemical
|
Sinopec Kantons
|
Shanghai SECCO
|
Sinopec-SK
|
||||||||
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
At 31 December
R2019
MB million
|
At 31 December
2018
RMB million
|
|
Current assets
|
129,266
|
130,861
|
19,151
|
16,731
|
22,309
|
25,299
|
1,788
|
816
|
1,284
|
1,209
|
11,858
|
9,537
|
5,337
|
2,750
|
Current liabilities
|
(192,106)
|
(181,766)
|
(456)
|
(483)
|
(15,479)
|
(13,913)
|
(804)
|
(50)
|
(2,961)
|
(3,722)
|
(3,196)
|
(2,233)
|
(15,037)
|
(2,333)
|
Net current (liabilities)/assets
|
(62,840)
|
(50,905)
|
18,695
|
16,248
|
6,830
|
11,386
|
984
|
766
|
(1,677)
|
(2,513)
|
8,662
|
7,304
|
(9,700)
|
417
|
Non-current assets
|
340,356
|
261,062
|
13,234
|
38,020
|
23,327
|
19,241
|
11,558
|
11,444
|
12,777
|
12,895
|
11,473
|
12,301
|
21,567
|
12,612
|
Non-current liabilities
|
(58,732)
|
(2,086)
|
(16,952)
|
(31,050)
|
(141)
|
(140)
|
(688)
|
(688)
|
(158)
|
(132)
|
(1,627)
|
(1,698)
|
(7)
|
–
|
Net non-current assets/ (liabilities)
|
281,624
|
258,976
|
(3,718)
|
6,970
|
23,186
|
19,101
|
10,870
|
10,756
|
12,619
|
12,763
|
9,846
|
10,603
|
21,560
|
12,612
|
Year ended 31 December
|
Marketing Company
|
SIPL
|
Shanghai Petrochemical
|
Fujian Petrochemical
|
Sinopec Kantons
|
Shanghai SECCO
|
Sinopec-SK
|
|||||||
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
R2019
MB million
|
2018
RMB million
|
|
Turnover
|
1,427,705
|
1,443,698
|
3,282
|
5,037
|
100,346
|
107,765
|
5,535
|
5,261
|
1,274
|
1,398
|
28,341
|
26,320
|
31,016
|
17,134
|
Profit for the year
|
22,984
|
21,995
|
2,831
|
3,272
|
2,225
|
5,277
|
477
|
1,595
|
1,131
|
1,065
|
3,137
|
3,099
|
664
|
1,879
|
Total comprehensive income
|
23,354
|
22,538
|
2,693
|
4,536
|
2,233
|
5,270
|
477
|
1,595
|
1,140
|
1,067
|
3,137
|
3,099
|
664
|
1,879
|
Comprehensive income attributable to minority interests
|
8,285
|
7,780
|
1,651
|
2,737
|
1,112
|
2,612
|
238
|
798
|
433
|
399
|
1,016
|
1,004
|
232
|
658
|
Dividends paid to minority interests
|
4,830
|
3,964
|
10,926
|
–
|
1,344
|
1,616
|
650
|
600
|
159
|
104
|
822
|
1,191
|
–
|
–
|
Net cash generated from/ (used in) operating activities
|
40,260
|
24,825
|
2,128
|
3,467
|
5,121
|
6,695
|
622
|
38
|
716
|
738
|
4,601
|
3,766
|
5,532
|
3,308
|
58 |
COMMITMENTS
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Authorised and contracted for (i)
|
138,088
|
141,045
|
||||||
Authorised but not contracted for
|
63,967
|
54,392
|
||||||
Total
|
202,055
|
195,437
|
(i) |
The investment commitments of the Group is RMB 6,100 million (2018: RMB 5,553 million).
|
58 |
COMMITMENTS (Continued)
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Within one year
|
302
|
380
|
||||||
Between one and two years
|
69
|
79
|
||||||
Between two and three years
|
34
|
33
|
||||||
Between three and four years
|
30
|
28
|
||||||
Between four and five years
|
29
|
28
|
||||||
Thereafter
|
845
|
852
|
||||||
Total
|
1,309
|
1,400
|
59 |
CONTINGENT LIABILITIES
|
(a) |
The Company has been advised by its PRC lawyers that, except for liabilities constituting or arising out of or relating to the business assumed by the Company in the
Reorganisation, no other liabilities were assumed by the Company, and the Company is not jointly and severally liable for other debts and obligations incurred by Sinopec Group Company prior to the Reorganisation.
|
(b) |
At 31 December 2019 and 31 December 2018, the guarantees by the Group in respect of facilities granted to the parties below are as follows:
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Joint ventures
|
7,100
|
5,033
|
||||||
Associates (i)
|
10,140
|
12,168
|
||||||
Others (ii)
|
–
|
7,197
|
||||||
Total
|
17,240
|
24,398
|
(i) |
The Group provided a guarantee in respect to standby credit facilities granted to Zhongtian Synergetic Energy by banks amount to RMB 17,050 million. At 31 December 2019,
the amount withdrawn by Zhongtian Synergetic Energy from banks and guaranteed by the Group was RMB 10,140 million (31 December 2018: RMB 12,168 million).
|
(ii) |
The Group provided a guarantee in respect to the loan of New Bright International Development Limited borrowed from Sinopec Overseas Oil & Gas Limited. As at 31
December 2019, the loan agreement was terminated, in consequence, the guarantee agreement was terminated.
|
59 |
CONTINGENT LIABILITIES (Continued)
|
60 |
SEGMENT REPORTING
|
(i) |
Exploration and production – which explores and develops oil fields, produces crude oil and natural gas and sells such products to the refining segment of the Group and
external customers.
|
(ii) |
Refining – which processes and purifies crude oil, which is sourced from the exploration and production segment of the Group and external suppliers, and manufactures and
sells petroleum products to the chemicals and marketing and distribution segments of the Group and external customers.
|
(iii) |
Marketing and distribution – which owns and operates oil depots and service stations in the PRC, and distributes and sells refined petroleum products (mainly gasoline and
diesel) in the PRC through wholesale and retail sales networks.
|
(iv) |
Chemicals – which manufactures and sells petrochemical products, derivative petrochemical products and other chemical products to external customers.
|
(v) |
Corporate and others – which largely comprise the trading activities of the import and export companies of the Group and research and development undertaken by other
subsidiaries.
|
(1) |
Information of reportable segmental revenues, profits or losses, assets and liabilities
|
60 |
SEGMENT REPORTING (Continued)
|
(1) |
Information of reportable segmental revenues, profits or losses, assets and liabilities (Continued)
|
2019
RMB million
|
2018
RMB million
|
|||||||
Income from principal operations
|
||||||||
Exploration and production
|
||||||||
External sales
|
111,114
|
93,499
|
||||||
Inter-segment sales
|
89,315
|
95,954
|
||||||
200,429
|
189,453
|
|||||||
Refining
|
||||||||
External sales
|
141,674
|
148,930
|
||||||
Inter-segment sales
|
1,077,018
|
1,109,088
|
||||||
1,218,692
|
1,258,018
|
|||||||
Marketing and distribution
|
||||||||
External sales
|
1,393,557
|
1,408,989
|
||||||
Inter-segment sales
|
4,159
|
5,224
|
||||||
1,397,716
|
1,414,213
|
|||||||
Chemicals
|
||||||||
External sales
|
425,508
|
457,406
|
||||||
Inter-segment sales
|
54,865
|
73,835
|
||||||
480,373
|
531,241
|
|||||||
Corporate and others
|
||||||||
External sales
|
828,635
|
716,789
|
||||||
Inter-segment sales
|
654,337
|
650,271
|
||||||
1,482,972
|
1,367,060
|
|||||||
Elimination of inter-segment sales
|
(1,879,694
|
)
|
(1,934,372
|
)
|
||||
Consolidated income from principal operations
|
2,900,488
|
2,825,613
|
||||||
Income from other operations
|
||||||||
Exploration and production
|
10,283
|
10,738
|
||||||
Refining
|
5,464
|
5,389
|
||||||
Marketing and distribution
|
33,247
|
32,424
|
||||||
Chemicals
|
14,861
|
15,492
|
||||||
Corporate and others
|
1,850
|
1,523
|
||||||
Consolidated income from other operations
|
65,705
|
65,566
|
||||||
Consolidated operating income
|
2,966,193
|
2,891,179
|
60 |
SEGMENT REPORTING (Continued)
|
(1) |
Information of reportable segmental revenues, profits or losses, assets and liabilities (Continued)
|
2019
RMB million
|
2018
RMB million
|
|||||||
Operating profit/(loss)
|
||||||||
By segment
|
||||||||
Exploration and production
|
6,289
|
(11,557
|
)
|
|||||
Refining
|
30,074
|
53,703
|
||||||
Marketing and distribution
|
29,781
|
24,106
|
||||||
Chemicals
|
16,586
|
25,970
|
||||||
Corporate and others
|
3,530
|
(8,151
|
)
|
|||||
Elimination
|
(40
|
)
|
(3,634
|
)
|
||||
Total segment operating profit
|
86,220
|
80,437
|
||||||
Investment income
|
||||||||
Exploration and production
|
3,148
|
2,595
|
||||||
Refining
|
(580
|
)
|
429
|
|||||
Marketing and distribution
|
3,499
|
2,676
|
||||||
Chemicals
|
5,178
|
6,905
|
||||||
Corporate and others
|
1,383
|
(1,177
|
)
|
|||||
Total segment investment income
|
12,628
|
11,428
|
||||||
Less: Financial expenses
|
9,967
|
(1,001
|
)
|
|||||
Add: Other income
|
5,973
|
6,694
|
||||||
(Losses)/gains from changes in fair value
|
(3,511
|
)
|
2,656
|
|||||
Asset disposal losses
|
(1,318
|
)
|
(742
|
)
|
||||
Operating profit
|
90,025
|
101,474
|
||||||
Add: Non-operating income
|
2,598
|
2,070
|
||||||
Less: Non-operating expenses
|
2,607
|
3,042
|
||||||
Profit before taxation
|
90,016
|
100,502
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Assets
|
||||||||
Segment assets
|
||||||||
Exploration and production
|
410,950
|
321,686
|
||||||
Refining
|
321,080
|
271,356
|
||||||
Marketing and distribution
|
399,242
|
317,641
|
||||||
Chemicals
|
175,884
|
156,865
|
||||||
Corporate and others
|
131,686
|
152,799
|
||||||
Total segment assets
|
1,438,842
|
1,220,347
|
||||||
Cash at bank and on hand
|
127,927
|
167,015
|
||||||
Long-term equity investments
|
152,204
|
145,721
|
||||||
Deferred tax assets
|
17,616
|
21,694
|
||||||
Other unallocated assets
|
18,482
|
37,531
|
||||||
Total assets
|
1,755,071
|
1,592,308
|
||||||
Liabilities
|
||||||||
Segment liabilities
|
||||||||
Exploration and production
|
162,262
|
93,874
|
||||||
Refining
|
120,617
|
103,709
|
||||||
Marketing and distribution
|
219,381
|
159,028
|
||||||
Chemicals
|
53,515
|
37,380
|
||||||
Corporate and others
|
136,420
|
144,138
|
||||||
Total segment liabilities
|
692,195
|
538,129
|
||||||
Short-term loans
|
31,196
|
44,692
|
||||||
Non-current liabilities due within one year
|
69,490
|
17,450
|
||||||
Long-term loans
|
39,625
|
61,576
|
||||||
Debentures payable
|
19,157
|
31,951
|
||||||
Deferred tax liabilities
|
6,809
|
5,948
|
||||||
Other non-current liabilities
|
15,364
|
27,276
|
||||||
Other unallocated liabilities
|
4,330
|
7,627
|
||||||
Total liabilities
|
878,166
|
734,649
|
60 |
SEGMENT REPORTING (Continued)
|
(1) |
Information of reportable segmental revenues, profits or losses, assets and liabilities (Continued)
|
2019
RMB million
|
2018
RMB million
|
|||||||
Capital expenditure
|
||||||||
Exploration and production
|
61,739
|
42,155
|
||||||
Refining
|
31,372
|
27,908
|
||||||
Marketing and distribution
|
29,566
|
21,429
|
||||||
Chemicals
|
22,438
|
19,578
|
||||||
Corporate and others
|
1,979
|
6,906
|
||||||
147,094
|
117,976
|
|||||||
Depreciation, depletion and amortisation
|
||||||||
Exploration and production
|
50,732
|
60,331
|
||||||
Refining
|
19,676
|
18,164
|
||||||
Marketing and distribution
|
21,572
|
16,296
|
||||||
Chemicals
|
13,966
|
13,379
|
||||||
Corporate and others
|
2,866
|
1,797
|
||||||
108,812
|
109,967
|
|||||||
Impairment losses on long-lived assets
|
||||||||
Exploration and production
|
3
|
4,274
|
||||||
Refining
|
245
|
353
|
||||||
Marketing and distribution
|
80
|
264
|
||||||
Chemicals
|
17
|
1,374
|
||||||
Corporate and others
|
–
|
16
|
||||||
345
|
6,281
|
2019
RMB million
|
2018
RMB million
|
|||||||
External sales
|
||||||||
Mainland China
|
2,131,078
|
2,119,580
|
||||||
Singapore
|
505,672
|
395,129
|
||||||
Others
|
329,443
|
376,470
|
||||||
2,966,193
|
2,891,179
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Non-current assets
|
||||||||
Mainland China
|
1,235,676
|
989,668
|
||||||
Others
|
52,705
|
50,892
|
||||||
1,288,381
|
1,040,560
|
61 |
FINANCIAL INSTRUMENTS
|
• |
credit risk;
|
• |
liquidity risk; and
|
• |
market risk.
|
(i) |
Risk management
|
(ii) |
Impairment of financial assets
|
61 |
FINANCIAL INSTRUMENTS (Continued)
|
At 31 December 2019
|
||||||||||||||||||||||||
Carrying amount RMB million
|
Total contractual undiscounted cash flow RMB million
|
Within one year or on demand RMB million
|
More then one year but less than two years RMB million
|
More than two years but less than five years RMB million
|
More than five years RMB million
|
|||||||||||||||||||
Short-term loans
|
31,196
|
31,633
|
31,633
|
–
|
–
|
–
|
||||||||||||||||||
Derivative financial liabilities
|
2,729
|
2,729
|
2,729
|
–
|
–
|
–
|
||||||||||||||||||
Bills payable
|
11,834
|
11,834
|
11,834
|
–
|
–
|
–
|
||||||||||||||||||
Accounts payable
|
187,958
|
187,958
|
187,958
|
–
|
–
|
–
|
||||||||||||||||||
Other payables and employee benefits payable
|
77,093
|
77,093
|
77,093
|
–
|
–
|
–
|
||||||||||||||||||
Non-current liabilities due within one year
|
69,490
|
72,180
|
72,180
|
–
|
–
|
–
|
||||||||||||||||||
Long-term loans
|
39,625
|
49,604
|
404
|
6,492
|
15,610
|
27,098
|
||||||||||||||||||
Debentures payable
|
19,157
|
24,400
|
764
|
764
|
16,667
|
6,205
|
||||||||||||||||||
Lease liabilities
|
177,674
|
351,223
|
–
|
15,676
|
45,008
|
290,539
|
||||||||||||||||||
Total
|
616,756
|
808,654
|
384,595
|
22,932
|
77,285
|
323,842
|
At 31 December 2018
|
||||||||||||||||||||||||
Carrying amount RMB million
|
Total contractual undiscounted cash flow RMB million
|
Within one year or on demand RMB million
|
More than one year but less than two years RMB million
|
More than two years but less than five years RMB million
|
More than five years RMB million
|
|||||||||||||||||||
Short-term loans
|
44,692
|
45,040
|
45,040
|
–
|
–
|
–
|
||||||||||||||||||
Derivative financial liabilities
|
13,571
|
13,571
|
13,571
|
–
|
–
|
–
|
||||||||||||||||||
Bills payable
|
6,416
|
6,416
|
6,416
|
–
|
–
|
–
|
||||||||||||||||||
Accounts payable
|
186,341
|
186,341
|
186,341
|
–
|
–
|
–
|
||||||||||||||||||
Other payables and employee benefits payable
|
84,775
|
84,775
|
84,775
|
–
|
–
|
–
|
||||||||||||||||||
Non-current liabilities due within one year
|
17,450
|
18,053
|
18,053
|
–
|
–
|
–
|
||||||||||||||||||
Long-term loans
|
61,576
|
66,387
|
792
|
40,885
|
13,807
|
10,903
|
||||||||||||||||||
Debentures payable
|
31,951
|
38,674
|
1,269
|
14,030
|
17,124
|
6,251
|
||||||||||||||||||
Total
|
446,772
|
459,257
|
356,257
|
54,915
|
30,931
|
17,154
|
61 |
FINANCIAL INSTRUMENTS (Continued)
|
(a) |
Currency risk
|
At 31 December
2019
million
|
At 31 December
2018
million
|
|||||||
Gross exposure arising from loans and lease liabilities
|
||||||||
US Dollar
|
103
|
668
|
||||||
Singapore Dollar
|
4
|
–
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
US Dollar
|
27
|
172
|
||||||
Singapore Dollar
|
1
|
–
|
(b) |
Interest rate risk
|
(c) |
Commodity price risk
|
61 |
FINANCIAL INSTRUMENTS (Continued)
|
(i) |
Financial instruments carried at fair value
|
• |
Level 1 (highest level): fair values measured using quoted prices (unadjusted) in active markets for identical financial instruments.
|
• |
Level 2: fair values measured using quoted prices in active markets for similar financial instruments, or using valuation techniques in which all significant inputs are
directly or indirectly based on observable market data.
|
• |
Level 3 (lowest level): fair values measured using valuation techniques in which any significant input is not based on observable market data.
|
Level 1
RMB million
|
Level 2
RMB million
|
Level 3
RMB million
|
Total
RMB million
|
|||||||||||||
Assets
|
||||||||||||||||
Financial assets held for trading:
|
||||||||||||||||
– Structured deposits
|
–
|
–
|
3,318
|
3,318
|
||||||||||||
– Equity investments, listed and at quoted market price
|
1
|
–
|
–
|
1
|
||||||||||||
Derivative financial assets:
|
||||||||||||||||
– Derivative financial assets
|
128
|
709
|
–
|
837
|
||||||||||||
Receivables financing:
|
||||||||||||||||
– Receivables financing
|
–
|
–
|
8,622
|
8,622
|
||||||||||||
Other equity instrument investments:
|
||||||||||||||||
– Other Investments
|
90
|
–
|
1,431
|
1,521
|
||||||||||||
219
|
709
|
13,371
|
14,299
|
|||||||||||||
Liabilities
|
||||||||||||||||
Derivative financial liabilities:
|
||||||||||||||||
– Derivative financial liabilities
|
1,209
|
1,520
|
–
|
2,729
|
||||||||||||
1,209
|
1,520
|
–
|
2,729
|
Level 1
RMB million
|
Level 2
RMB million
|
Level 3
RMB million
|
Total
RMB million
|
|||||||||||||
Assets
|
||||||||||||||||
Financial assets held for trading:
|
||||||||||||||||
– Structured deposits
|
–
|
–
|
25,550
|
25,550
|
||||||||||||
– Equity investments (listed and at quoted market price)
|
182
|
–
|
–
|
182
|
||||||||||||
Derivative financial assets:
|
||||||||||||||||
– Derivative financial assets
|
874
|
7,013
|
–
|
7,887
|
||||||||||||
Other equity instrument investments:
|
||||||||||||||||
– Other Investments
|
127
|
–
|
1,323
|
1,450
|
||||||||||||
1,183
|
7,013
|
26,873
|
35,069
|
|||||||||||||
Liabilities
|
||||||||||||||||
Derivative financial liabilities:
|
||||||||||||||||
– Derivative financial liabilities
|
5,500
|
8,071
|
–
|
13,571
|
||||||||||||
5,500
|
8,071
|
–
|
13,571
|
61 |
FINANCIAL INSTRUMENTS (Continued)
|
(ii) |
Fair values of financial instruments carried at other than fair value
|
At 31 December
2019
RMB million
|
At 31 December
2018
RMB million
|
|||||||
Carrying amount
|
63,946
|
63,085
|
||||||
Fair value
|
62,594
|
62,656
|
62 |
EXTRAORDINARY GAINS AND LOSSES
|
2019
RMB million
|
2018
RMB million
|
|||||||
Extraordinary (gains)/losses for the year:
|
||||||||
Net loss on disposal of non-current assets
|
1,318
|
742
|
||||||
Donations
|
209
|
180
|
||||||
Government grants
|
(6,857
|
)
|
(7,482
|
)
|
||||
Gain on holding and disposal of various investments
|
(410
|
)
|
(1,023
|
)
|
||||
Other non-operating loss, net
|
729
|
1,613
|
||||||
(5,011
|
)
|
(5,970
|
)
|
|||||
Tax effect
|
1,597
|
2,312
|
||||||
Total
|
(3,414
|
)
|
(3,658
|
)
|
||||
Attributable to:
|
||||||||
Equity shareholders of the Company
|
(3,320
|
)
|
(3,459
|
)
|
||||
Minority interests
|
(94
|
)
|
(199
|
)
|
63 |
BASIC AND DILUTED EARNINGS PER SHARE
|
(i) |
Basic earnings per share
|
2019
|
2018
|
|||||||
Net profit attributable to equity shareholders of the Company (RMB million)
|
57,591
|
63,089
|
||||||
Weighted average number of outstanding ordinary shares of the Company (million)
|
121,071
|
121,071
|
||||||
Basic earnings per share (RMB/share)
|
0.476
|
0.521
|
2019
|
2018
|
|||||||
Weighted average number of outstanding ordinary shares of the Company at 1 January (million)
|
121,071
|
121,071
|
||||||
Weighted average number of outstanding ordinary shares of the Company at 31 December (million)
|
121,071
|
121,071
|
(ii) |
Diluted earnings per share
|
2019
|
2018
|
|||||||
Net profit attributable to equity shareholders of the Company (diluted) (RMB million)
|
57,591
|
63,089
|
||||||
Weighted average number of outstanding ordinary shares of the Company (diluted) (million)
|
121,071
|
121,071
|
||||||
Diluted earnings per share (RMB/share)
|
0.476
|
0.521
|
2019
|
2018
|
|||||||
Weighted average number of the ordinary shares issued at 31 December (million)
|
121,071
|
121,071
|
||||||
Weighted average number of the ordinary shares issued at 31 December (diluted) (million)
|
121,071
|
121,071
|
64 |
RETURN ON NET ASSETS AND EARNINGS PER SHARE
|
2019
|
2018
|
|||||||||||||||||||||||
Weighted average
return on
net assets
(%)
|
Basic
earnings
per share
(RMB/Share)
|
Diluted
earnings
per share
(RMB/Share)
|
Weighted average
return on
net assets
(%)
|
Basic
earnings
per share
(RMB/Share)
|
Diluted
earnings
per share
(RMB/Share)
|
|||||||||||||||||||
Net profit attributable to the Company's ordinary equit shareholders
|
7.90
|
0.476
|
0.476
|
8.67
|
0.521
|
0.521
|
||||||||||||||||||
Net profit deducted extraordinary gains and losses attributable to the Company's ordinary equity shareholders
|
7.45
|
0.448
|
0.448
|
8.20
|
0.493
|
0.493
|
65 |
EVENTS AFTER THE BALANCE SHEET DATE
|
• |
the consolidated balance sheet as at 31 December 2019;
|
• |
the consolidated income statement for the year then ended;
|
• |
the consolidated statement of comprehensive income for the year then ended;
|
• |
the consolidated statement of changes in equity for the year then ended;
|
• |
the consolidated statement of cash flows for the year then ended; and
|
• |
the notes to the consolidated financial statements, which include a summary of significant accounting policies.
|
Key Audit Matter
|
How our audit addressed the Key Audit Matter
|
Recoverability of the carrying amount of property, plant and equipment relating to oil and gas producing activities
Refer to note 8 "Other operating expense, net", note 16 "Property, plant and equipment" and note 43 "Accounting estimates and judgements" to the consolidated financial
statements.
Low crude oil prices gave rise to possible indication that the carrying amount of property, plant and equipment relating to oil and gas producing activities as at 31 December
2019 might be impaired. The Group has adopted value in use as the respective recoverable amounts of property, plant and equipment relating to oil and gas producing activities, which involved key estimations or assumptions including:
– Future crude oil prices;
– Future production profiles;
– Future cost profiles; and
– Discount rates.
Because of the significance of the carrying amount of property, plant and equipment relating to oil and gas producing activities as at 31 December 2019, together with the use
of significant estimations or assumptions in determining their respective value in use, we had placed our audit emphasis on this matter.
|
In auditing the respective value in use calculations of property, plant and equipment relating to oil and gas producing activities, we performed the following key procedures
on the relevant discounted cash flow projections prepared by management:
• Evaluated and tested the key controls in respect of the preparation
of the discounted cash flow projections of property, plant and equipment relating to oil and gas producing activities.
• Assessed the methodology adopted in the discounted cash flow
projections, tested mathematical accuracy of the projections, and the completeness, accuracy, and relevance of underlying data used in the projections.
• Compared estimates of future crude oil prices adopted by the Group
against a range of published crude oil price forecasts.
• Compared the future production profiles against the oil and gas
reserve estimation report approved by the management. Evaluated the competence, capability and objectivity of the management's experts engaged in estimating the oil and gas reserves. Assessed key estimations or assumptions used in the
reserve estimation, by reference to historical data, management plans and/or relevant external data.
• Compared the future cost profiles against historical costs and
relevant budgets of the Group.
• Tested selected other key data inputs, such as natural gas prices
and production profiles in the projections by reference to historical data and/or relevant budgets of the Group.
• Used professionals with specialized skill and knowledge to assist
in the evaluation of the appropriateness of discount rates adopted by the management.
• Evaluated the sensitivity analyses prepared by the Group, and
assessed the potential impacts of a range of possible outcomes.
Based on our work, we found the key assumptions and input data adopted were supported by the evidence we obtained.
|
• |
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
|
• |
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Group's internal control.
|
• |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
|
• |
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report
to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
|
• |
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial
statements represent the underlying transactions and events in a manner that achieves fair presentation.
|
• |
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the
consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
|
(B) |
FINANCIAL STATEMENTS PREPARED UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS")
|
Notes
|
Year ended 31 December
|
|||||||||||
2019
RMB
|
2018
RMB
|
|||||||||||
Turnover and other operating revenues
|
||||||||||||
Turnover
|
3
|
2,900,488
|
2,825,613
|
|||||||||
Other operating revenues
|
4
|
65,705
|
65,566
|
|||||||||
2,966,193
|
2,891,179
|
|||||||||||
Operating expenses
|
||||||||||||
Purchased crude oil, products and operating supplies and expenses
|
(2,380,907
|
)
|
(2,292,983
|
)
|
||||||||
Selling, general and administrative expenses
|
5
|
(55,313
|
)
|
(65,642
|
)
|
|||||||
Depreciation, depletion and amortisation
|
(108,812
|
)
|
(109,967
|
)
|
||||||||
Exploration expenses, including dry holes
|
(10,510
|
)
|
(10,744
|
)
|
||||||||
Personnel expenses
|
6
|
(81,482
|
)
|
(77,721
|
)
|
|||||||
Taxes other than income tax
|
7
|
(242,535
|
)
|
(246,498
|
)
|
|||||||
Other operating expense, net
|
8
|
(436
|
)
|
(5,360
|
)
|
|||||||
Total operating expenses
|
(2,879,995
|
)
|
(2,808,915
|
)
|
||||||||
Operating profit
|
86,198
|
82,264
|
||||||||||
Finance costs
|
||||||||||||
Interest expense
|
9
|
(17,003
|
)
|
(7,321
|
)
|
|||||||
Interest income
|
7,206
|
7,726
|
||||||||||
Foreign currency exchange (losses)/gains, net
|
(170
|
)
|
596
|
|||||||||
Net finance costs
|
(9,967
|
)
|
1,001
|
|||||||||
Investment income
|
919
|
1,871
|
||||||||||
Share of profits less losses from associates and joint ventures
|
20, 21
|
12,777
|
13,974
|
|||||||||
Profit before taxation
|
89,927
|
99,110
|
||||||||||
Income tax expense
|
10
|
(17,894
|
)
|
(20,213
|
)
|
|||||||
Profit for the year
|
72,033
|
78,897
|
||||||||||
Attributable to:
|
||||||||||||
Shareholders of the Company
|
57,465
|
61,618
|
||||||||||
Non-controlling interests
|
14,568
|
17,279
|
||||||||||
Profit for the year
|
72,033
|
78,897
|
||||||||||
Earnings per share:
|
15
|
|||||||||||
Basic
|
0.475
|
0.509
|
||||||||||
Diluted
|
0.475
|
0.509
|
Notes
|
Year ended 31 December
|
|||||||||||
2019
RMB
|
2018
RMB
|
|||||||||||
Profit for the year
|
72,033
|
78,897
|
||||||||||
Other comprehensive income:
|
14
|
|||||||||||
Items that may not be reclassified subsequently to profit or loss
|
||||||||||||
Equity investments at fair value through other comprehensive income
|
(31
|
)
|
(53
|
)
|
||||||||
Total items that may not be reclassified subsequently to profit or loss
|
(31
|
)
|
(53
|
)
|
||||||||
Items that may be reclassified subsequently to profit or loss
|
||||||||||||
Share of other comprehensive loss of associates and joint ventures
|
(810
|
)
|
(229
|
)
|
||||||||
Cash flow hedges
|
4,941
|
(9,741
|
)
|
|||||||||
Foreign currency translation differences
|
1,480
|
3,399
|
||||||||||
Total items that may be reclassified subsequently to profit or loss
|
5,611
|
(6,571
|
)
|
|||||||||
Total other comprehensive income
|
5,580
|
(6,624
|
)
|
|||||||||
Total comprehensive income for the year
|
77,613
|
72,273
|
||||||||||
Attributable to:
|
||||||||||||
Shareholders of the Company
|
62,880
|
54,000
|
||||||||||
Non-controlling interests
|
14,733
|
18,273
|
||||||||||
Total comprehensive income for the year
|
77,613
|
72,273
|
Notes
|
31 December
2019
RMB
|
31 December
2018
RMB
|
||||||||||
Non-current assets
|
||||||||||||
Property, plant and equipment, net
|
16
|
622,409
|
617,762
|
|||||||||
Construction in progress
|
17
|
173,482
|
136,963
|
|||||||||
Right-of-use assets
|
18, 1(a)
|
|
267,860
|
—
|
||||||||
Goodwill
|
19
|
8,697
|
8,676
|
|||||||||
Interest in associates
|
20
|
95,737
|
89,537
|
|||||||||
Interest in joint ventures
|
21
|
56,467
|
56,184
|
|||||||||
Financial assets at fair value through other comprehensive income
|
26
|
1,521
|
1,450
|
|||||||||
Deferred tax assets
|
29
|
17,616
|
21,694
|
|||||||||
Lease prepayments
|
—
|
64,514
|
||||||||||
Long-term prepayments and other assets
|
22
|
65,426
|
91,408
|
|||||||||
Total non-current assets
|
1,309,215
|
1,088,188
|
||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
60,313
|
111,922
|
||||||||||
Time deposits with financial institutions
|
67,614
|
55,093
|
||||||||||
Financial assets at fair value through profit or loss
|
23
|
3,319
|
25,732
|
|||||||||
Derivative financial assets
|
24
|
837
|
7,887
|
|||||||||
Trade accounts receivable and bills receivable
|
25
|
54,865
|
64,879
|
|||||||||
Financial assets at fair value through other comprehensive income
|
26
|
8,622
|
–
|
|||||||||
Inventories
|
27
|
192,442
|
184,584
|
|||||||||
Prepaid expenses and other current assets
|
28
|
57,844
|
54,023
|
|||||||||
Total current assets
|
445,856
|
504,120
|
||||||||||
Current liabilities
|
||||||||||||
Short-term debts
|
30
|
40,521
|
29,462
|
|||||||||
Loans from Sinopec Group Company and fellow subsidiaries
|
30
|
43,289
|
31,665
|
|||||||||
Lease liabilities
|
31, 1(a)
|
|
15,198
|
—
|
||||||||
Derivative financial liabilities
|
24
|
2,729
|
13,571
|
|||||||||
Trade accounts payable and bills payable
|
32
|
199,792
|
192,757
|
|||||||||
Contract liabilities
|
33
|
126,735
|
124,793
|
|||||||||
Other payables
|
34
|
144,846
|
166,151
|
|||||||||
Income tax payable
|
3,264
|
6,699
|
||||||||||
Total current liabilities
|
||||||||||||
Net current liabilities
|
576,374
|
565,098
|
||||||||||
Total assets less current liabilities
|
130,518
|
60,978
|
||||||||||
1,178,697
|
1,027,210
|
|||||||||||
Non-current liabilities
|
||||||||||||
Long-term debts
|
30
|
49,156
|
51,011
|
|||||||||
Loans from Sinopec Group Company and fellow subsidiaries
|
30
|
9,626
|
42,516
|
|||||||||
Lease liabilities
|
31, 1(a)
|
|
177,674
|
—
|
||||||||
Deferred tax liabilities
|
29
|
6,809
|
5,948
|
|||||||||
Provisions
|
35
|
43,163
|
42,800
|
|||||||||
Other long-term liabilities
|
16,434
|
28,400
|
||||||||||
Total non-current liabilities
|
302,862
|
170,675
|
||||||||||
875,835
|
856,535
|
|||||||||||
Equity
|
||||||||||||
Share capital
|
36
|
121,071
|
121,071
|
|||||||||
Reserves
|
617,079
|
596,213
|
||||||||||
Total equity attributable to shareholders of the Company
|
738,150
|
717,284
|
||||||||||
Non-controlling interests
|
137,685
|
139,251
|
||||||||||
Total equity
|
875,835
|
856,535
|
Zhang Yuzhuo
|
Ma Yongsheng
|
Shou Donghua
|
Chairman
|
President
|
Chief Financial Officer
|
Share capital RMB
|
Capital reserve RMB
|
Share premium RMB
|
Statutory surplus reserve RMB
|
Discretionary surplus reserve RMB
|
Other reserves RMB
|
Retained earnings RMB
|
Total equity attributable to shareholders of the Company RMB
|
Non- controlling interests RMB
|
Total equity RMB
|
|||||||||||||||||||||||||||||||
Balance at 31 December 2017
|
121,071
|
26,326
|
55,850
|
82,682
|
117,000
|
(2,934
|
)
|
326,125
|
726,120
|
126,770
|
852,890
|
|||||||||||||||||||||||||||||
Change in accounting policy
|
–
|
–
|
–
|
–
|
–
|
(12
|
)
|
12
|
–
|
–
|
–
|
|||||||||||||||||||||||||||||
Balance at 1 January 2018
|
121,071
|
26,326
|
55,850
|
82,682
|
117,000
|
(2,946
|
)
|
326,137
|
726,120
|
126,770
|
852,890
|
|||||||||||||||||||||||||||||
Profit for the year
|
–
|
–
|
–
|
–
|
–
|
–
|
61,618
|
61,618
|
17,279
|
78,897
|
||||||||||||||||||||||||||||||
Other comprehensive income (Note 14)
|
–
|
–
|
–
|
–
|
–
|
(7,618
|
)
|
–
|
(7,618
|
)
|
994
|
(6,624
|
)
|
|||||||||||||||||||||||||||
Total comprehensive income for the year
|
–
|
–
|
–
|
–
|
–
|
(7,618
|
)
|
61,618
|
54,000
|
18,273
|
72,273
|
|||||||||||||||||||||||||||||
Amounts transferred to initial carrying amount of hedged items
|
–
|
–
|
–
|
–
|
–
|
5,269
|
–
|
5,269
|
–
|
5,269
|
||||||||||||||||||||||||||||||
Transactions with owners, recorded directly in equity:
|
||||||||||||||||||||||||||||||||||||||||
Contributions by and distributions to owners:
|
||||||||||||||||||||||||||||||||||||||||
Final dividend for 2017 (Note 13)
|
–
|
–
|
–
|
–
|
–
|
–
|
(48,428
|
)
|
(48,428
|
)
|
–
|
(48,428
|
)
|
|||||||||||||||||||||||||||
Interim dividend for 2018 (Note 13)
|
–
|
–
|
–
|
–
|
–
|
–
|
(19,371
|
)
|
(19,371
|
)
|
–
|
(19,371
|
)
|
|||||||||||||||||||||||||||
Appropriation (Note (a))
|
–
|
–
|
–
|
3,996
|
–
|
–
|
(3,996
|
)
|
–
|
–
|
–
|
|||||||||||||||||||||||||||||
Distributions to non-controlling interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
(7,476
|
)
|
(7,476
|
)
|
||||||||||||||||||||||||||||
Contributions to subsidiaries from non-controlling interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
2,060
|
2,060
|
||||||||||||||||||||||||||||||
Total contributions by and distributions to owners
|
–
|
–
|
–
|
3,996
|
–
|
–
|
(71,795
|
)
|
(67,799
|
)
|
(5,416
|
)
|
(73,215
|
)
|
||||||||||||||||||||||||||
Transaction with non-controlling interests
|
–
|
(12
|
)
|
–
|
–
|
–
|
–
|
–
|
(12
|
)
|
(299
|
)
|
(311
|
)
|
||||||||||||||||||||||||||
Total transactions with owners
|
–
|
(12
|
)
|
–
|
3,996
|
–
|
–
|
(71,795
|
)
|
(67,811
|
)
|
(5,715
|
)
|
(73,526
|
)
|
|||||||||||||||||||||||||
Others
|
–
|
(261
|
)
|
–
|
–
|
–
|
818
|
(851
|
)
|
(294
|
)
|
(77
|
)
|
(371
|
)
|
|||||||||||||||||||||||||
Balance at 31 December 2018
|
121,071
|
26,053
|
55,850
|
86,678
|
117,000
|
(4,477
|
)
|
315,109
|
717,284
|
139,251
|
856,535
|
Share capital RMB
|
Capital reserve RMB
|
Share premium RMB
|
Statutory surplus reserve RMB
|
Discretionary surplus reserve RMB
|
Other reserves RMB
|
Retained earnings RMB
|
Total equity attributable to shareholders of the Company RMB
|
Non- controlling interests RMB
|
Total equity RMB
|
|||||||||||||||||||||||||||||||
Balance at 1 January 2019
|
121,071
|
26,053
|
55,850
|
86,678
|
117,000
|
(4,477
|
)
|
315,109
|
717,284
|
139,251
|
856,535
|
|||||||||||||||||||||||||||||
Profit for the year
|
–
|
–
|
–
|
–
|
–
|
–
|
57,465
|
57,465
|
14,568
|
72,033
|
||||||||||||||||||||||||||||||
Other comprehensive income (Note 14)
|
–
|
–
|
–
|
–
|
–
|
5,415
|
–
|
5,415
|
165
|
5,580
|
||||||||||||||||||||||||||||||
Total comprehensive income for the year
|
–
|
–
|
–
|
–
|
–
|
5,415
|
57,465
|
62,880
|
14,733
|
77,613
|
||||||||||||||||||||||||||||||
Amounts transferred to initial carrying amount of hedged items
|
–
|
–
|
–
|
–
|
–
|
1,038
|
–
|
1,038
|
55
|
1,093
|
||||||||||||||||||||||||||||||
Transactions with owners, recorded directly in equity:
|
||||||||||||||||||||||||||||||||||||||||
Contributions by and distributions to owners:
|
||||||||||||||||||||||||||||||||||||||||
Final dividend for 2018 (Note 13)
|
–
|
–
|
–
|
–
|
–
|
–
|
(31,479
|
)
|
(31,479
|
)
|
–
|
(31,479
|
)
|
|||||||||||||||||||||||||||
Interim dividend for 2019 (Note 13)
|
–
|
–
|
–
|
–
|
–
|
–
|
(14,529
|
)
|
(14,529
|
)
|
–
|
(14,529
|
)
|
|||||||||||||||||||||||||||
Appropriation (Note (a))
|
–
|
–
|
–
|
3,745
|
–
|
–
|
(3,745
|
)
|
–
|
–
|
–
|
|||||||||||||||||||||||||||||
Distributions to non-controlling interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
(18,989
|
)
|
(18,989
|
)
|
||||||||||||||||||||||||||||
Contributions to subsidiaries from non-controlling interests
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
–
|
5,495
|
5,495
|
||||||||||||||||||||||||||||||
Total contributions by and distributions to owners
|
–
|
–
|
–
|
3,745
|
–
|
–
|
(49,753
|
)
|
(46,008
|
)
|
(13,494
|
)
|
(59,502
|
)
|
||||||||||||||||||||||||||
Transaction with non-controlling interests
|
–
|
2,933
|
–
|
–
|
–
|
–
|
–
|
2,933
|
(2,933
|
)
|
–
|
|||||||||||||||||||||||||||||
Total transactions with owners
|
–
|
2,933
|
–
|
3,745
|
–
|
–
|
(49,753
|
)
|
(43,075
|
)
|
(16,427
|
)
|
(59,502
|
)
|
||||||||||||||||||||||||||
Others
|
–
|
7
|
–
|
–
|
–
|
(35
|
)
|
51
|
23
|
73
|
96
|
|||||||||||||||||||||||||||||
Balance at 31 December 2019
|
121,071
|
28,993
|
55,850
|
90,423
|
117,000
|
1,941
|
322,872
|
738,150
|
137,685
|
875,835
|
(a) |
According to the PRC Company Law and the Articles of Association of the Company, the Company is required to transfer 10% of its net profit determined in accordance with
the accounting policies complying with Accounting Standards for Business Enterprises ("CASs"), adopted by the Group to statutory surplus reserve. In the event that the reserve balance reaches 50% of the registered capital, no transfer
is required. The transfer to this reserve must be made before distribution of a dividend to shareholders. Statutory surplus reserve can be used to make good previous years' losses, if any, and may be converted into share capital by
issuing of new shares to shareholders in proportion to their existing shareholdings or by increasing the par value of the shares currently held by them, provided that the balance after such issue is not less than 25% of the registered
capital.
|
(b) |
The usage of the discretionary surplus reserve is similar to that of statutory surplus reserve.
|
(c) |
As at 31 December 2019, the amount of retained earnings available for distribution was RMB 130,645 million (2018: RMB 143,148 million), being the amount determined in
accordance with CASs. According to the Articles of Association of the Company, the amount of retained earnings available for distribution to shareholders of the Company is lower of the amount determined in accordance with the accounting
policies complying with CASs and the amount determined in accordance with the accounting policies complying with International Financial Reporting Standards ("IFRS").
|
(d) |
The capital reserve represents (i) the difference between the total amount of the par value of shares issued and the amount of the net assets transferred from Sinopec
Group Company in connection with the Reorganisation (Note 1); and (ii) the difference between the considerations paid over or received the amount of the net assets of entities and related operations acquired from or sold to Sinopec
Group Company and non-controlling interests.
|
(e) |
The application of the share premium account is governed by Sections 167 and 168 of the PRC Company Law.
|
Notes
|
Year ended 31 December
|
||||||||
2019
RMB
|
2018
RMB
|
||||||||
Net cash generated from operating activities
|
(a)
|
153,420
|
175,868
|
||||||
Investing activities
|
|||||||||
Capital expenditure
|
(129,645
|
)
|
(94,753
|
)
|
|||||
Exploratory wells expenditure
|
(11,497
|
)
|
(8,261
|
)
|
|||||
Purchase of investments, investments in associates and investments in joint ventures
|
(3,483
|
)
|
(10,116
|
)
|
|||||
Payment for financial assets at fair value through profit or loss
|
(12,851
|
)
|
(29,550
|
)
|
|||||
Proceeds from sale of financial assets at fair value through profit or loss
|
35,292
|
55,000
|
|||||||
Payment for acquisition of subsidiary, net of cash acquired
|
(1,031
|
)
|
(3,188
|
)
|
|||||
Proceeds from disposal of investments and investments in associates
|
704
|
1,557
|
|||||||
Proceeds from disposal of property, plant, equipment and other non-current assets
|
703
|
9,666
|
|||||||
Increase in time deposits with maturities over three months
|
(103,231
|
)
|
(81,708
|
)
|
|||||
Decrease in time deposits with maturities over three months
|
90,710
|
78,401
|
|||||||
Interest received
|
7,094
|
5,810
|
|||||||
Investment and dividend income received
|
10,272
|
10,720
|
|||||||
Repayments of other investing activities
|
(3,500
|
)
|
–
|
||||||
Net cash used in investing activities
|
(120,463
|
)
|
(66,422
|
)
|
|||||
Financing activities
|
|||||||||
Proceeds from bank and other loans
|
599,866
|
746,655
|
|||||||
Repayments of bank and other loans
|
(612,108
|
)
|
(772,072
|
)
|
|||||
Contributions to subsidiaries from non-controlling interests
|
3,919
|
1,886
|
|||||||
Dividends paid by the Company
|
(46,008
|
)
|
(67,799
|
)
|
|||||
Distributions by subsidiaries to non-controlling interests
|
(7,354
|
)
|
(13,700
|
)
|
|||||
Interest paid
|
(6,161
|
)
|
(5,984
|
)
|
|||||
Payments made to acquire non-controlling interests
|
(8
|
)
|
(160
|
)
|
|||||
Repayments of lease liabilities (2018: Finance lease payment)
|
(16,859
|
)
|
(86
|
)
|
|||||
Proceeds from other financing activities
|
320
|
–
|
|||||||
Repayments of other financing activities
|
(320
|
)
|
–
|
||||||
Net cash used in financing activities
|
(84,713
|
)
|
(111,260
|
)
|
|||||
Net decrease in cash and cash equivalents
|
(51,756
|
)
|
(1,814
|
)
|
|||||
Cash and cash equivalents at 1 January
|
111,922
|
113,218
|
|||||||
Effect of foreign currency exchange rate changes
|
147
|
518
|
|||||||
Cash and cash equivalents at 31 December
|
60,313
|
111,922
|
(a) |
Reconciliation from profit before taxation to net cash generated from operating activities
|
Year ended 31 December
|
||||||||
2019
RMB
|
2018
RMB
|
|||||||
Operating activities
|
||||||||
Profit before taxation
|
89,927
|
99,110
|
||||||
Adjustments for:
|
||||||||
Depreciation, depletion and amortisation
|
108,812
|
109,967
|
||||||
Dry hole costs written off
|
5,831
|
6,921
|
||||||
Share of profits from associates and joint ventures
|
(12,777
|
)
|
(13,974
|
)
|
||||
Investment income
|
(919
|
)
|
(1,871
|
)
|
||||
Interest income
|
(7,206
|
)
|
(7,726
|
)
|
||||
Interest expense
|
17,003
|
7,321
|
||||||
Loss/(gain) on foreign currency exchange rate changes and derivative financial instruments
|
3,624
|
(1,835
|
)
|
|||||
Loss on disposal of property, plant, equipment and other non-current assets, net
|
1,918
|
1,526
|
||||||
Impairment losses on assets
|
1,789
|
11,605
|
||||||
Credit impairment losses
|
1,264
|
141
|
||||||
209,266
|
211,185
|
|||||||
Net changes from:
|
||||||||
Accounts receivable and other current assets
|
(11,802
|
)
|
(1,043
|
)
|
||||
Inventories
|
(9,285
|
)
|
(3,312
|
)
|
||||
Accounts payable and other current liabilities
|
(15,236
|
)
|
2,111
|
|||||
172,943
|
208,941
|
|||||||
Income tax paid
|
(19,523
|
)
|
(33,073
|
)
|
||||
Net cash generated from operating activities
|
153,420
|
175,868
|
1 |
PRINCIPAL ACTIVITIES, ORGANISATION AND BASIS OF PREPARATION
|
(a) |
New and amended standards and interpretations adopted by the Group
|
(i) |
Practical expedients applied
|
• |
the use of a single discount rate to a portfolio of leases with reasonably similar characteristics,
|
• |
the accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases.
|
1 |
PRINCIPAL ACTIVITIES, ORGANISATION AND BASIS OF PREPARATION (Continued)
|
(a) |
New and amended standards and interpretations adopted by the Group (Continued)
|
(ii) |
Measurement of lease liabilities
|
RMB million
|
||||
Operating lease commitments disclosed as at 31 December 2018
|
352,794
|
|||
Discounted using the lessee's incremental borrowing rate of at the date of initial application
|
200,867
|
|||
(Less): short-term leases and low-value leases recognised on a straight-line basis as expense
|
(2,303
|
)
|
||
Lease liabilities recognised as at 1 January 2019
|
198,564
|
|||
Of which are:
|
||||
Current lease liabilities
|
13,894
|
|||
Non-current lease liabilities
|
184,670
|
|||
198,564
|
(iii) |
Measurement of right-of-use assets
|
31 December
2019
RMB million
|
1 January
2019
RMB million
|
|||||||
Land
|
239,374
|
244,588
|
||||||
Others
|
28,486
|
27,381
|
||||||
Total right-of-use assets
|
267,860
|
271,969
|
(iv) |
Adjustments recognised in the balance sheet on 1 January 2019
|
• |
right-of-use assets – increase by RMB 271,969 million
|
• |
lease prepayments – decrease by RMB 64,514 million
|
• |
prepaid expenses and other current assets – decrease by RMB 766 million
|
• |
long-term prepayments and other assets – decrease by RMB 8,125 million
|
• |
lease liabilities – increase by RMB 198,564 million
|
(v) |
Impact on segment disclosures
|
Increase in
|
||||||||
Segment assets
RMB million
|
Segment liabilities
RMB million
|
|||||||
Exploration and production
|
79,263
|
78,041
|
||||||
Refining
|
32,839
|
26,094
|
||||||
Marketing and distribution
|
120,983
|
62,237
|
||||||
Chemicals
|
19,124
|
12,252
|
||||||
Corporate and others
|
15,651
|
14,248
|
||||||
267,860
|
192,872
|
1 |
PRINCIPAL ACTIVITIES, ORGANISATION AND BASIS OF PREPARATION (Continued)
|
(b) |
New and amended standards and interpretations not yet adopted by the Group
|
2 |
SIGNIFICANT ACCOUNTING POLICIES
|
(a) |
Basis of consolidation
|
(i) |
Subsidiaries and non-controlling interests
|
(ii) |
Associates and joint ventures
|
2 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(a) |
Basis of consolidation (Continued)
|
(ii) |
Associates and joint ventures (Continued)
|
(iii) |
Transactions eliminated on consolidation
|
(iv) |
Merger accounting for common control combination
|
(b) |
Translation of foreign currencies
|
2 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(d) |
Trade, bills and other receivables
|
(e) |
Inventories
|
(f) |
Property, plant and equipment
|
Estimated
usage period
|
Estimated
residuals rate
|
||||
Buildings
|
12 to 50 years
|
3
|
%
|
||
Equipment, machinery and others
|
4 to 30 years
|
3
|
%
|
(g) |
Oil and gas properties
|
(h) |
Construction in progress
|
2 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(i) |
Goodwill
|
(j) |
Financial assets
|
(i) |
Classification and measurement
|
• |
Amortised cost: The business model for managing such financial assets by the Group are held for collection of contractual cash flows. The contractual cash flow
characteristics are to give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income from these financial assets is recognised using the effective
interest rate method.
|
• |
FVOCI: The business model for managing such financial assets by the Group are held for collection of contractual cash flows and for selling the financial assets, where
the assets' cash flows represent solely payments of principal and interest on the principal amount outstanding. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment
gains or losses, foreign exchange gains and losses and interest income calculated using the effective interest rate method, which are recognised in profit or loss.
|
(ii) |
Impairment
|
2 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(j) |
Financial assets (Continued)
|
(ii) |
Impairment (Continued)
|
(iii) |
Derecognition
|
(k) |
Financial liabilities
|
(l) |
Determination of fair value for financial instruments
|
(m) |
Derivative financial instruments and hedge accounting
|
2 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(m) |
Derivative financial instruments and hedge accounting (Continued)
|
(i) |
There is an economic relationship between the hedged item and the hedging instrument, which shares a risk and that gives rise to opposite changes in fair value that tend
to offset each other.
|
(ii) |
The effect of credit risk does not dominate the value changes that result from that economic relationship.
|
(iii) |
The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the
hedging instrument that the entity actually uses to hedge that quantity of hedged item. However, that designation does not reflect an imbalance between the weightings of the hedged item and the hedging instrument.
|
(i) |
The cumulative gain or loss on the hedging instrument from inception of the hedge; and
|
(ii) |
The cumulative change in fair value (present value) of the hedged item (i.e. the present value of the cumulative change in the hedged expected future cash flows) from
inception of the hedge.
|
(n) |
Impairment of assets
|
2 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(n) |
Impairment of assets (Continued)
|
(o) |
Trade, bills and other payables
|
(p) |
Interest-bearing borrowings
|
(q) |
Provisions and contingent liability
|
(r) |
Revenue recognition
|
(s) |
Government grants
|
2 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(t) |
Borrowing costs
|
(u) |
Repairs and maintenance expenditure
|
(v) |
Environmental expenditures
|
(w) |
Research and development expense
|
(x) |
Leases
|
(i) |
As lessee
|
(ii) |
As lessor
|
(iii) |
Accounting policy applied until 31 December 2018
|
2 |
SIGNIFICANT ACCOUNTING POLICIES (Continued)
|
(y) |
Employee benefits
|
(z) |
Income tax
|
3 |
TURNOVER
|
2019
RMB million
|
2018
RMB million
|
|||||||
Gasoline
|
699,202
|
711,236
|
||||||
Diesel
|
615,342
|
594,008
|
||||||
Crude oil
|
553,848
|
519,910
|
||||||
Basic chemical feedstock
|
214,911
|
250,884
|
||||||
Kerosene
|
191,636
|
168,823
|
||||||
Synthetic resin
|
124,271
|
124,618
|
||||||
Synthetic fiber monomers and polymers
|
80,100
|
77,572
|
||||||
Natural gas
|
53,839
|
43,205
|
||||||
Others (i)
|
367,339
|
335,357
|
||||||
2,900,488
|
2,825,613
|
(i) |
Others are primarily liquefied petroleum gas and other refinery and chemical by-products and joint products.
|
4 |
OTHER OPERATING REVENUES
|
2019
RMB million
|
2018
RMB million
|
|
Sale of materials and others
|
64,489
|
64,503
|
Rental income
|
1,216
|
1,063
|
65,705
|
65,566
|
5 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
2019
RMB million
|
2018
RMB million
|
|||||||
Operating lease charges
|
1,856
|
12,297
|
||||||
Auditor's remuneration:
|
||||||||
– audit services
|
70
|
94
|
||||||
– others
|
6
|
9
|
||||||
Impairment losses:
|
||||||||
– trade accounts receivable
|
1,283
|
6
|
||||||
– other receivables
|
(2
|
)
|
9
|
6 |
PERSONNEL EXPENSES
|
2019
RMB million
|
2018
RMB million
|
|||||||
Salaries, wages and other benefits
|
69,817
|
68,425
|
||||||
Contributions to retirement schemes (Note 39)
|
11,665
|
9,296
|
||||||
81,482
|
77,721
|
7 |
TAXES OTHER THAN INCOME TAX
|
2019
RMB million
|
2018
RMB million
|
|||||||
Consumption tax (i)
|
202,671
|
201,901
|
||||||
City construction tax (ii)
|
16,247
|
18,237
|
||||||
Education surcharge
|
12,011
|
13,187
|
||||||
Resources tax
|
5,883
|
6,021
|
||||||
Others
|
5,723
|
7,152
|
||||||
242,535
|
246,498
|
(i) |
Consumption tax was levied based on sales quantities of taxable products, tax rate of products is presented as below:
|
Products
|
Effective from
13 January 2015
RMB/Ton
|
|||
Gasoline
|
2,109.76
|
|||
Diesel
|
1,411.20
|
|||
Naphtha
|
2,105.20
|
|||
Solvent oil
|
1,948.64
|
|||
Lubricant oil
|
1,711.52
|
|||
Fuel oil
|
1,218.00
|
|||
Jet fuel oil
|
1,495.20
|
(ii) |
City construction tax is levied on an entity based on its total paid amount of value-added tax and consumption tax.
|
8 |
OTHER OPERATING EXPENSE, NET
|
2019
RMB million
|
2018
RMB million
|
|||||||
Government grants (i)
|
6,911
|
7,539
|
||||||
Ineffective portion of change in fair value of cash flow hedges
|
(222
|
)
|
(1,978
|
)
|
||||
Net realised and unrealised (loss)/gain on derivative financial instruments not qualified as hedging
|
(4,384
|
)
|
191
|
|||||
Impairment losses on long-lived assets (ii)
|
(345
|
)
|
(6,281
|
)
|
||||
Loss on disposal of property, plant, equipment and other non-current assets, net
|
(1,918
|
)
|
(1,526
|
)
|
||||
Fines, penalties and compensations
|
(173
|
)
|
(276
|
)
|
||||
Donations
|
(209
|
)
|
(180
|
)
|
||||
Others
|
(96
|
)
|
(2,849
|
)
|
||||
(436
|
)
|
(5,360
|
)
|
(i) |
Government grants for the years ended 31 December 2019 and 2018 primarily represent financial appropriation income and non-income tax refunds received from respective
government agencies without conditions or other contingencies attached to the receipts of the grants.
|
(ii) |
Impairment losses on long-lived assets for the year ended 31 December 2019 primarily represent impairment losses recognised in the refining segment of RMB 245 million
(2018: RMB 353 million), the marketing and distribution segment of RMB 80 million (2018: RMB 264 million), the chemicals segment of RMB 17 million (2018: RMB 1,374 million) and the exploration and production ("E&P") segment of RMB 3
million (2018: RMB 4,274 million). The primary factor resulting in the E&P segment impairment loss in the prior year was downward revision of oil and gas reserve in certain fields. E&P segment determines recoverable amounts of
properties, plant and equipment relating to oil and gas producing activities, which include significant judgments and assumptions. The recoverable amounts were determined based on the present values of the expected future cash flows of
the assets using a pre-tax discount rate 10.47% (2018: 10.47%). Further future downward revisions to the Group's oil price outlook would lead to further impairments which, in aggregate, are likely to be material. It is estimated that a
general decrease of 5% in oil price, with all other variables held constant, would result in additional impairment loss on the Group's properties, plant and equipment relating to oil and gas producing activities by approximately RMB 184
million (2018: RMB 312 million). It is estimated that a general increase of 5% in operating cost, with all other variables held constant, would result in additional impairment loss on the Group's properties, plant and equipment relating
to oil and gas producing activities by approximately RMB 180 million (2018: RMB 315 million). It is estimated that a general increase of 5% in discount rate, with all other variables held constant, would result in additional impairment
loss on the Group's properties, plant and equipment relating to oil and gas producing activities by approximately RMB 7 million (2018: less RMB 5 million).
|
9 |
INTEREST EXPENSE
|
2019
RMB million
|
2018
RMB million
|
|||||||
Interest expense incurred
|
6,954
|
6,376
|
||||||
Less: Interest expense capitalised*
|
(1,015
|
)
|
(493
|
)
|
||||
5,939
|
5,883
|
|||||||
Interest expense on lease liabilities
|
9,646
|
—
|
||||||
Accretion expenses (Note 35)
|
1,418
|
1,438
|
||||||
Interest expense
|
17,003
|
7,321
|
||||||
* Interest rates per annum at which borrowing costs were capitalised for construction in progress
|
2.92% to 4.66%
|
2.37% to 4.66%
|
10 |
INCOME TAX EXPENSE
|
2019
RMB million
|
2018
RMB million
|
|||||||
Current tax
|
||||||||
– Provision for the year
|
14,976
|
27,176
|
||||||
– Adjustment of prior years
|
(467
|
)
|
(719
|
)
|
||||
Deferred taxation (Note 29)
|
3,385
|
(6,244
|
)
|
|||||
17,894
|
20,213
|
10 |
INCOME TAX EXPENSE (Continued)
|
2019
RMB million
|
2018
RMB million
|
|||||||
Profit before taxation
|
89,927
|
99,110
|
||||||
Expected PRC income tax expense at a statutory tax rate of 25%
|
22,482
|
24,778
|
||||||
Tax effect of non-deductible expenses
|
2,300
|
2,351
|
||||||
Tax effect of non-taxable income
|
(4,458
|
)
|
(5,033
|
)
|
||||
Tax effect of preferential tax rate (i)
|
(2,003
|
)
|
(1,259
|
)
|
||||
Effect of income taxes at foreign operations
|
(312
|
)
|
77
|
|||||
Tax effect of utilisation of previously unrecognised tax losses and temporary differences
|
(335
|
)
|
(779
|
)
|
||||
Tax effect of tax losses not recognised
|
498
|
609
|
||||||
Write-down of deferred tax assets
|
189
|
188
|
||||||
Adjustment of prior years
|
(467
|
)
|
(719
|
)
|
||||
Actual income tax expense
|
17,894
|
20,213
|
(i) |
The provision for PRC current income tax is based on a statutory income tax rate of 25% of the assessable income of the Group as determined in accordance with the
relevant income tax rules and regulations of the PRC, except for certain entities of the Group in western regions in the PRC are taxed at preferential income tax rate of 15% through the year 2020.
|
11 |
DIRECTORS' AND SUPERVISORS' EMOLUMENTS
|
(a) |
Directors' and supervisors' emoluments
|
Emoluments paid or receivable in respect of director's other services in connection with the management of the affairs of the Company
or its subsidiary undertaking
|
Emoluments paid or receivable in respect of a person's services as a director, whether of the Company or its subsidiary undertaking
|
|||||||||||||||||||
2019
|
||||||||||||||||||||
Name
|
Salaries, allowances and benefits in kind
|
Bonuses
|
Retirement scheme contributions
|
Directors'/ Supervisors' fee
|
Total
|
|||||||||||||||
Directors
|
||||||||||||||||||||
Dai Houliang
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Ma Yongsheng
|
294
|
1,173
|
96
|
–
|
1,563
|
|||||||||||||||
Li Yunpeng
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Yu Baocai
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Ling Yiqun
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Liu Zhongyun (i)
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Li Yong
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Independent non-executive directors
|
||||||||||||||||||||
Tang Min
|
–
|
–
|
–
|
350
|
350
|
|||||||||||||||
Fan Gang
|
–
|
–
|
–
|
350
|
350
|
|||||||||||||||
Cai Hongbin
|
–
|
–
|
–
|
350
|
350
|
|||||||||||||||
Johnny Karling Ng
|
–
|
–
|
–
|
350
|
350
|
|||||||||||||||
Supervisors
|
||||||||||||||||||||
Zhao Dong
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Jiang Zhenying
|
369
|
865
|
88
|
–
|
1,322
|
|||||||||||||||
Yang Changjiang
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Zhang Baolong
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Zou Huiping
|
369
|
989
|
88
|
–
|
1,446
|
|||||||||||||||
Yu Xizhi
|
369
|
880
|
88
|
–
|
1,337
|
|||||||||||||||
Zhou Hengyou
|
369
|
874
|
88
|
–
|
1,331
|
|||||||||||||||
Yu Renming
|
369
|
889
|
88
|
–
|
1,346
|
|||||||||||||||
Total
|
2,139
|
5,670
|
536
|
1,400
|
9,745
|
(a) |
Directors' and supervisors' emoluments (Continued)
|
Emoluments paid or receivable in respect of director's other services in connection with the management of the affairs of the Company or its subsidiary
undertaking
|
Emoluments paid or receivable in respect of a person's services as a director, whether of the Company or its subsidiary undertaking
|
|||||||||||||||||||
2018
|
||||||||||||||||||||
Name
|
Salaries, allowances and benefits in kind
|
Bonuses
|
Retirement scheme contributions
|
Directors'/ Supervisors' fee
|
Total
|
|||||||||||||||
RMB' 000
|
RMB' 000
|
RMB' 000
|
RMB' 000
|
RMB' 000
|
||||||||||||||||
Directors
|
||||||||||||||||||||
Dai Houliang
|
224
|
179
|
65
|
–
|
468
|
|||||||||||||||
Li Yunpeng
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Yu Baocai
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Ma Yongsheng
|
53
|
328
|
14
|
–
|
395
|
|||||||||||||||
Ling Yiqun
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Liu Zhongyun (i)
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Li Yong
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Wang Zhigang (ii)
|
21
|
456
|
6
|
–
|
483
|
|||||||||||||||
Zhang Haichao (ii)
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Jiao Fangzheng (iii)
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Independent non-executive directors
|
||||||||||||||||||||
Tang Min
|
–
|
–
|
–
|
333
|
333
|
|||||||||||||||
Fan Gang
|
–
|
–
|
–
|
333
|
333
|
|||||||||||||||
Cai Hongbin
|
–
|
–
|
–
|
233
|
233
|
|||||||||||||||
Johnny Karling Ng
|
–
|
–
|
–
|
233
|
233
|
|||||||||||||||
Jiang Xiaoming (iv)
|
–
|
–
|
–
|
125
|
125
|
|||||||||||||||
Andrew Y. Yan (iv)
|
–
|
–
|
–
|
125
|
125
|
|||||||||||||||
Supervisors
|
||||||||||||||||||||
Zhao Dong
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Jiang Zhenying
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Yang Changjiang
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Zhang Baolong
|
–
|
–
|
–
|
–
|
–
|
|||||||||||||||
Zou Huiping
|
298
|
663
|
74
|
–
|
1,035
|
|||||||||||||||
Zhou Hengyou
|
174
|
122
|
44
|
–
|
340
|
|||||||||||||||
Yu Renming
|
298
|
613
|
74
|
–
|
985
|
|||||||||||||||
Yu Xizhi
|
298
|
636
|
74
|
–
|
1,008
|
|||||||||||||||
Total
|
1,366
|
2,997
|
351
|
1,382
|
6,096
|
(i) |
Mr. Liu Zhongyun was elected to be director from 15 May 2018. Due to change of working arrangement, Mr. Liu Zhongyun has tendered his resignation as executive director,
member of Strategy Committee of the Board and Senior Vice President of the Company from 9 December 2019.
|
(ii) |
Mr. Wang Zhigang ceased being director from 29 January 2018; Mr. Zhang Haichao ceased being director from 29 January 2018.
|
(iii) |
Mr. Jiao Fangzheng ceased being director from 7 June 2018.
|
(iv) |
Mr. Jiang Xiaoming ceased being independent non-executive director from 15 May 2018; Mr. Andrew Y. Yan ceased being independent non-executive director from 15 May 2018.
|
12 |
SENIOR MANAGEMENT'S EMOLUMENTS
|
13 |
DIVIDENDS
|
2019
RMB million
|
2018
RMB million
|
|||||||
Dividends declared and paid during the year of RMB 0.12 per share (2018: RMB 0.16 per share)
|
14,529
|
19,371
|
||||||
Dividends declared after the balance sheet date of RMB 0.19 per share (2018: RMB 0.26 per share)
|
23,004
|
31,479
|
||||||
37,533
|
50,850
|
2019
RMB million
|
2018
RMB million
|
|||||||
Final cash dividends in respect of the previous financial year, approved during the year of RMB 0.26 per share (2018: RMB 0.40
per share)
|
31,479
|
48,428
|
14 |
OTHER COMPREHENSIVE INCOME
|
2019
|
2018
|
|||||||||||||||||||||||
Before tax
amount
RMB million
|
Tax
effect
RMB million
|
Net of tax
amount
RMB million
|
Before tax
amount
RMB million
|
Tax
effect
RMB million
|
Net of tax
amount
RMB million
|
|||||||||||||||||||
Cash flow hedges:
|
||||||||||||||||||||||||
Effective portion of changes in fair value of hedging instruments recognised during the year
|
5,258
|
(974
|
)
|
4,284
|
(12,500
|
)
|
2,159
|
(10,341
|
)
|
|||||||||||||||
Reclassification adjustments for amounts transferred to the consolidated income statement
|
853
|
(196
|
)
|
657
|
730
|
(130
|
)
|
600
|
||||||||||||||||
Net movement during the year recognised in other comprehensive income (i)
|
6,111
|
(1,170
|
)
|
4,941
|
(11,770
|
)
|
2,029
|
(9,741
|
)
|
|||||||||||||||
Changes in the fair value of instruments at fair value through other comprehensive income
|
(39
|
)
|
8
|
(31
|
)
|
(41
|
)
|
(12
|
)
|
(53
|
)
|
|||||||||||||
Net movement during the year recognised in other comprehensive income
|
(39
|
)
|
8
|
(31
|
)
|
(41
|
)
|
(12
|
)
|
(53
|
)
|
|||||||||||||
Share of other comprehensive loss of associates and joint ventures
|
(810
|
)
|
–
|
(810
|
)
|
(240
|
)
|
11
|
(229
|
)
|
||||||||||||||
Foreign currency translation differences
|
1,480
|
–
|
1,480
|
3,399
|
–
|
3,399
|
||||||||||||||||||
Other comprehensive income
|
6,742
|
(1,162
|
)
|
5,580
|
(8,652
|
)
|
2,028
|
(6,624
|
)
|
(i) |
As at 31 December 2019, cash flow hedge reserve amounted to a gain of RMB 1,102 million (31 December 2018: a loss of RMB 4,932 million), of which a gain of RMB 1,037
million was attribute to shareholders of the Company (31 December 2018: a loss of RMB 4,917 million).
|
15 |
BASIC AND DILUTED EARNINGS PER SHARE
|
(i) |
Profit attributable to ordinary shareholders of the Company (diluted)
|
2019
RMB million
|
2018
RMB million
|
|||||||
Profit attributable to ordinary shareholders of the Company
|
57,465
|
61,618
|
||||||
Profit attributable to ordinary shareholders of the Company (diluted)
|
57,465
|
61,618
|
(ii) |
Weighted average number of shares (diluted)
|
2019
|
2018
|
|||||||
Number of shares
|
Number of shares
|
|||||||
Weighted average number of shares at 31 December
|
121,071,209,646
|
121,071,209,646
|
||||||
Weighted average number of shares (diluted) at 31 December
|
121,071,209,646
|
121,071,209,646
|
16 |
PROPERTY, PLANT AND EQUIPMENT
|
Plants and buildings RMB million
|
Oil and gas, properties RMB million
|
Equipment, machinery
and others
RMB million
|
Total
RMB million
|
|||||||||||||
Cost:
|
||||||||||||||||
Balance at 1 January 2018
|
120,013
|
667,657
|
940,312
|
1,727,982
|
||||||||||||
Additions
|
221
|
1,567
|
3,856
|
5,644
|
||||||||||||
Transferred from construction in progress
|
3,741
|
24,366
|
45,103
|
73,210
|
||||||||||||
Reclassifications
|
1,634
|
138
|
(1,772
|
)
|
–
|
|||||||||||
Reclassification to other long-term assets
|
(483
|
)
|
–
|
(3,828
|
)
|
(4,311
|
)
|
|||||||||
Disposals
|
(3,183
|
)
|
(146
|
)
|
(18,323
|
)
|
(21,652
|
)
|
||||||||
Exchange adjustments
|
98
|
2,142
|
147
|
2,387
|
||||||||||||
Balance at 31 December 2018
|
122,041
|
695,724
|
965,495
|
1,783,260
|
||||||||||||
Balance at 1 January 2019
|
122,041
|
695,724
|
965,495
|
1,783,260
|
||||||||||||
Additions
|
160
|
1,408
|
3,856
|
5,424
|
||||||||||||
Transferred from construction in progress
|
6,192
|
31,378
|
54,275
|
91,845
|
||||||||||||
Reclassifications
|
1,051
|
(76
|
)
|
(975
|
)
|
–
|
||||||||||
Invest into the joint ventures and associated companies
|
(8
|
)
|
–
|
(303
|
)
|
(311
|
)
|
|||||||||
Reclassification to other long-term assets
|
(748
|
)
|
–
|
(729
|
)
|
(1,477
|
)
|
|||||||||
Disposals
|
(237
|
)
|
(1,549
|
)
|
(13,467
|
)
|
(15,253
|
)
|
||||||||
Exchange adjustments
|
42
|
667
|
71
|
780
|
||||||||||||
Balance at 31 December 2019
|
128,493
|
727,552
|
1,008,223
|
1,864,268
|
||||||||||||
Accumulated depreciation:
|
||||||||||||||||
Balance at 1 January 2018
|
52,200
|
495,817
|
529,191
|
1,077,208
|
||||||||||||
Depreciation for the year
|
4,038
|
48,616
|
47,250
|
99,904
|
||||||||||||
Impairment losses for the year
|
274
|
4,027
|
1,848
|
6,149
|
||||||||||||
Reclassifications
|
494
|
76
|
(570
|
)
|
–
|
|||||||||||
Reclassification to other long-term assets
|
(120
|
)
|
–
|
(1,390
|
)
|
(1,510
|
)
|
|||||||||
Written back on disposals
|
(1,795
|
)
|
(125
|
)
|
(16,331
|
)
|
(18,251
|
)
|
||||||||
Exchange adjustments
|
43
|
1,877
|
78
|
1,998
|
||||||||||||
Balance at 31 December 2018
|
55,134
|
550,288
|
560,076
|
1,165,498
|
||||||||||||
Balance at 1 January 2019
|
55,134
|
550,288
|
560,076
|
1,165,498
|
||||||||||||
Depreciation for the year
|
4,095
|
36,289
|
47,583
|
87,967
|
||||||||||||
Impairment losses for the year
|
11
|
–
|
185
|
196
|
||||||||||||
Reclassifications
|
292
|
(46
|
)
|
(246
|
)
|
–
|
||||||||||
Invest into the joint ventures and associated companies
|
–
|
–
|
(216
|
)
|
(216
|
)
|
||||||||||
Reclassification to other long-term assets
|
3
|
–
|
(94
|
)
|
(91
|
)
|
||||||||||
Written back on disposals
|
(763
|
)
|
(6
|
)
|
(11,454
|
)
|
(12,223
|
)
|
||||||||
Exchange adjustments
|
21
|
667
|
40
|
728
|
||||||||||||
Balance at 31 December 2019
|
58,793
|
587,192
|
595,874
|
1,241,859
|
||||||||||||
Net book value:
|
||||||||||||||||
Balance at 1 January 2018
|
67,813
|
171,840
|
411,121
|
650,774
|
||||||||||||
Balance at 31 December 2018
|
66,907
|
145,436
|
405,419
|
617,762
|
||||||||||||
Balance at 31 December 2019
|
69,700
|
140,360
|
412,349
|
622,409
|
16 |
PROPERTY, PLANT AND EQUIPMENT (Continued)
|
17 |
CONSTRUCTION IN PROGRESS
|
2019
RMB million
|
2018
RMB million
|
|||||||
Balance at 1 January
|
136,963
|
118,645
|
||||||
Additions
|
144,369
|
108,555
|
||||||
Dry hole costs written off
|
(5,831
|
)
|
(6,921
|
)
|
||||
Transferred to property, plant and equipment
|
(91,845
|
)
|
(73,210
|
)
|
||||
Reclassification to other long-term assets
|
(10,086
|
)
|
(10,066
|
)
|
||||
Impairment losses for the year
|
(135
|
)
|
(28
|
)
|
||||
Disposals and others
|
46
|
(19
|
)
|
|||||
Exchange adjustments
|
1
|
7
|
||||||
Balance at 31 December
|
173,482
|
136,963
|
18 |
RIGHT-OF-USE ASSETS
|
Land
RMB million
|
Others
RMB million
|
Total
RMB million
|
||||||||||
Cost:
|
||||||||||||
Change in accounting policy (Note 1(a))
|
244,588
|
27,381
|
271,969
|
|||||||||
Balance at 1 January 2019
|
244,588
|
27,381
|
271,969
|
|||||||||
Increase
|
8,650
|
7,555
|
16,205
|
|||||||||
Decrease
|
(4,760
|
)
|
(748
|
)
|
(5,508
|
)
|
||||||
Balance at 31 December 2019
|
248,478
|
34,188
|
282,666
|
|||||||||
Accumulated depreciation:
|
||||||||||||
Balance at 1 January 2019
|
–
|
–
|
–
|
|||||||||
Increase
|
9,233
|
5,728
|
14,961
|
|||||||||
Decrease
|
(129
|
)
|
(26
|
)
|
(155
|
)
|
||||||
Balance at 31 December 2019
|
9,104
|
5,702
|
14,806
|
|||||||||
Impairment loss:
|
||||||||||||
Balance at 1 January 2019
|
–
|
–
|
–
|
|||||||||
Increase
|
–
|
–
|
–
|
|||||||||
Decrease
|
–
|
–
|
–
|
|||||||||
Balance at 31 December 2019
|
–
|
–
|
–
|
|||||||||
Net book value:
|
||||||||||||
Balance at 1 January 2019
|
244,588
|
27,381
|
271,969
|
|||||||||
Balance at 31 December 2019
|
239,374
|
28,486
|
267,860
|
19 |
GOODWILL
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Cost
|
16,558
|
16,537
|
||||||
Less: Accumulated impairment losses
|
(7,861
|
)
|
(7,861
|
)
|
||||
8,697
|
8,676
|
Principal activities
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|
Sinopec Zhenhai Refining and Chemical Branch ("Sinopec Zhenhai")
|
Manufacturing of intermediate petrochemical products and petroleum products
|
4,043
|
4,043
|
Shanghai SECCO Petrochemical Company Limited ("Shanghai SECCO")
|
Production and sale of petrochemical products
|
2,541
|
2,541
|
Sinopec Beijing Yanshan Petrochemical Branch ("Sinopec Yanshan")
|
Manufacturing of intermediate petrochemical products and petroleum products
|
1,004
|
1,004
|
Other units without individually significant goodwill
|
1,109
|
1,088
|
|
8,697
|
8,676
|
20 |
INTEREST IN ASSOCIATES
|
Name of company
|
% of ownership interests
|
Principal activities
|
Measurement method
|
Country of incorporation
|
Principal place of business
|
Sinopec Sichuan To East China Gas Pipeline Co., Ltd. ("Pipeline Ltd")
|
50.00
|
Operation of natural gas pipelines and auxiliary facilities
|
Equity method
|
PRC
|
PRC
|
Sinopec Finance Company Limited ("Sinopec Finance")
|
49.00
|
Provision of non-banking financial services
|
Equity method
|
PRC
|
PRC
|
PAO SIBUR Holding ("SIBUR") (i)
|
10.00
|
Processing natural gas and manufacturing petrochemical products
|
Equity method
|
Russia
|
Russia
|
Zhongtian Synergetic Energy Company Limited ("Zhongtian Synergetic Energy")
|
38.75
|
Mining coal and manufacturing of coal-chemical products
|
Equity method
|
PRC
|
PRC
|
Caspian Investments Resources Ltd. ("CIR")
|
50.00
|
Crude oil and natural gas extraction
|
Equity method
|
British Virgin Islands
|
The Republic of Kazakhstan
|
20 |
INTEREST IN ASSOCIATES (Continued)
|
Pipeline Ltd
|
Sinopec Finance
|
SIBUR
|
Zhongtian Synergetic Energy
|
Sinopec SABIC Tianjin
|
||||||||||||||||||||||||||||||||||||
31 December
2019
RMB million
|
31 December
2018
RMB million
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||||||||||||||||||||||||||
Current assets
|
13,245
|
12,498
|
180,383
|
209,837
|
31,634
|
22,502
|
4,219
|
7,477
|
7,612
|
6,712
|
||||||||||||||||||||||||||||||
Non-current assets
|
37,842
|
39,320
|
18,926
|
16,359
|
182,646
|
170,796
|
56,424
|
49,961
|
971
|
1,828
|
||||||||||||||||||||||||||||||
Current liabilities
|
(721
|
)
|
(1,020
|
)
|
(170,621
|
)
|
(200,402
|
)
|
(31,295
|
)
|
(23,293
|
)
|
(13,887
|
)
|
(7,252
|
)
|
(936
|
)
|
(961
|
)
|
||||||||||||||||||||
Non-current liabilities
|
(2,910
|
)
|
(3,026
|
)
|
(582
|
)
|
(332
|
)
|
(71,289
|
)
|
(58,628
|
)
|
(26,227
|
)
|
(31,436
|
)
|
(166
|
)
|
(673
|
)
|
||||||||||||||||||||
Net assets
|
47,456
|
47,772
|
28,106
|
25,462
|
111,696
|
111,377
|
20,529
|
18,750
|
7,481
|
6,906
|
||||||||||||||||||||||||||||||
Net assets attributable to owners of the Company
|
47,456
|
47,772
|
28,106
|
25,462
|
111,250
|
110,860
|
20,529
|
18,750
|
7,481
|
6,906
|
||||||||||||||||||||||||||||||
Net assets attributable to non-controlling interests
|
–
|
–
|
–
|
–
|
446
|
517
|
–
|
–
|
–
|
–
|
||||||||||||||||||||||||||||||
Share of net assets from associates
|
23,728
|
23,886
|
13,772
|
12,476
|
11,125
|
11,086
|
7,955
|
7,266
|
3,741
|
3,453
|
||||||||||||||||||||||||||||||
Carrying Amounts
|
23,728
|
23,886
|
13,772
|
12,476
|
11,125
|
11,086
|
7,955
|
7,266
|
3,741
|
3,453
|
Year ended 31 December
|
Pipeline Ltd
|
Sinopec Finance
|
SIBUR
|
Zhongtian Synergetic Energy
|
Sinopec SABIC Tianjin
|
|||||||||||||||||||||||||||||||||||
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
|||||||||||||||||||||||||||||||
Turnover
|
5,008
|
4,746
|
4,966
|
4,536
|
56,706
|
59,927
|
13,329
|
12,235
|
2,334
|
2,856
|
||||||||||||||||||||||||||||||
Profit for the year
|
2,191
|
2,022
|
2,234
|
1,868
|
6,513
|
10,400
|
1,994
|
1,142
|
424
|
583
|
||||||||||||||||||||||||||||||
Other comprehensive income/(loss)
|
–
|
–
|
411
|
(157
|
)
|
(1,435
|
)
|
6,410
|
–
|
–
|
151
|
116
|
||||||||||||||||||||||||||||
Total comprehensive income
|
2,191
|
2,022
|
2,645
|
1,711
|
5,078
|
16,810
|
1,994
|
1,142
|
575
|
699
|
||||||||||||||||||||||||||||||
Dividends declared by associates
|
1,259
|
1,207
|
–
|
490
|
468
|
271
|
219
|
–
|
–
|
–
|
||||||||||||||||||||||||||||||
Share of profit from associates
|
1,096
|
1,011
|
1,095
|
915
|
651
|
1,040
|
773
|
443
|
212
|
292
|
||||||||||||||||||||||||||||||
Share of other comprehensive income/(loss) from associates (ii)
|
–
|
–
|
201
|
(77
|
)
|
(144
|
)
|
641
|
–
|
–
|
76
|
58
|
(i) |
Sinopec is able to exercise significant influence in SIBUR since Sinopec has a member in SIBUR's Board of Director and has a member in SIBUR's Management Board.
|
(ii) |
Including foreign currency translation differences.
|
21 |
INTEREST IN JOINT VENTURES
|
Name of entity
|
% of ownership interests
|
Principal activities
|
Measurement method
|
Country of incorporation
|
Principal place of business
|
Fujian Refining & Petrochemical
Company Limited ("FREP") |
50.00
|
Manufacturing refining oil products
|
Equity method
|
PRC
|
PRC
|
BASF-YPC Company Limited
("BASF-YPC") |
40.00
|
Manufacturing and distribution of petrochemical products
|
Equity method
|
PRC
|
PRC
|
Taihu Limited ("Taihu")
|
49.00
|
Crude oil and natural gas extraction
|
Equity method
|
Cyprus
|
Russia
|
Yanbu Aramco Sinopec Refining
Company Ltd. ("YASREF") |
37.50
|
Petroleum refining and processing business
|
Equity method
|
Saudi Arabia
|
Saudi Arabia
|
Sinopec SABIC Tianjin Petrochemical
Company Limited ("Sinopec SABIC Tianjin") |
50.00
|
Manufacturing and distribution of petrochemical products
|
Equity method
|
PRC
|
PRC
|
21 |
INTEREST IN JOINT VENTURES (Continued)
|
FREP
|
BASF-YPC
|
Taihu
|
YASREF
|
Sinopec SABIC Tianjin
|
||||||||||||||||||||||||||||||||||||
31 December
2019
RMB million
|
31 December
2018
RMB million
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||||||||||||||||||||||||||
Current assets
|
||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
5,603
|
7,388
|
1,154
|
1,582
|
4,485
|
3,406
|
733
|
930
|
3,242
|
5,110
|
||||||||||||||||||||||||||||||
Other current assets
|
11,977
|
9,248
|
4,937
|
5,795
|
2,336
|
3,689
|
11,311
|
10,267
|
4,501
|
4,007
|
||||||||||||||||||||||||||||||
Total current assets
|
17,580
|
16,636
|
6,091
|
7,377
|
6,821
|
7,095
|
12,044
|
11,197
|
7,743
|
9,117
|
||||||||||||||||||||||||||||||
Non-current assets
|
17,267
|
19,271
|
10,498
|
11,086
|
10,453
|
9,216
|
50,548
|
51,873
|
14,878
|
13,990
|
||||||||||||||||||||||||||||||
Current liabilities
|
||||||||||||||||||||||||||||||||||||||||
Current financial liabilities
|
(1,280
|
)
|
(1,200
|
)
|
(237
|
)
|
(725
|
)
|
(57
|
)
|
(59
|
)
|
(7,445
|
)
|
(4,806
|
)
|
(500
|
)
|
(500
|
)
|
||||||||||||||||||||
Other current liabilities
|
(7,090
|
)
|
(4,939
|
)
|
(1,808
|
)
|
(1,822
|
)
|
(1,815
|
)
|
(2,124
|
)
|
(12,504
|
)
|
(12,217
|
)
|
(2,896
|
)
|
(2,507
|
)
|
||||||||||||||||||||
Total current liabilities
|
(8,370
|
)
|
(6,139
|
)
|
(2,045
|
)
|
(2,547
|
)
|
(1,872
|
)
|
(2,183
|
)
|
(19,949
|
)
|
(17,023
|
)
|
(3,396
|
)
|
(3,007
|
)
|
||||||||||||||||||||
Non-current liabilities
|
||||||||||||||||||||||||||||||||||||||||
Non-current financial liabilities
|
(11,185
|
)
|
(12,454
|
)
|
–
|
(218
|
)
|
(125
|
)
|
(72
|
)
|
(29,445
|
)
|
(32,364
|
)
|
(4,592
|
)
|
(3,651
|
)
|
|||||||||||||||||||||
Other non-current liabilities
|
(290
|
)
|
(279
|
)
|
(35
|
)
|
(17
|
)
|
(1,984
|
)
|
(2,271
|
)
|
(1,963
|
)
|
(937
|
)
|
(368
|
)
|
(331
|
)
|
||||||||||||||||||||
Total non-current liabilities
|
(11,475
|
)
|
(12,733
|
)
|
(35
|
)
|
(235
|
)
|
(2,109
|
)
|
(2,343
|
)
|
(31,408
|
)
|
(33,301
|
)
|
(4,960
|
)
|
(3,982
|
)
|
||||||||||||||||||||
Net assets
|
15,002
|
17,035
|
14,509
|
15,681
|
13,293
|
11,785
|
11,235
|
12,746
|
14,265
|
16,118
|
||||||||||||||||||||||||||||||
Net assets attributable to owners of the company
|
15,002
|
17,035
|
14,509
|
15,681
|
12,829
|
11,373
|
11,235
|
12,746
|
14,265
|
16,118
|
||||||||||||||||||||||||||||||
Net assets attributable to non-controlling interests
|
–
|
–
|
–
|
–
|
464
|
412
|
–
|
–
|
–
|
–
|
||||||||||||||||||||||||||||||
Share of net assets from joint ventures
|
7,501
|
8,518
|
5,804
|
6,272
|
6,286
|
5,573
|
4,213
|
4,780
|
7,133
|
8,059
|
||||||||||||||||||||||||||||||
Carrying Amounts
|
7,501
|
8,518
|
5,804
|
6,272
|
6,286
|
5,573
|
4,213
|
4,780
|
7,133
|
8,059
|
Year ended 31 December
|
FREP
|
BASF-YPC
|
Taihu
|
YASREF
|
Sinopec SABIC Tianjin
|
|||||||||||||||||||||||||||||||||||
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
2019
RMB million
|
2018
RMB million
|
|||||||||||||||||||||||||||||||
Turnover
|
57,047
|
52,469
|
19,590
|
21,574
|
15,222
|
14,944
|
75,940
|
77,561
|
20,541
|
23,501
|
||||||||||||||||||||||||||||||
Depreciation, depletion and amortisation
|
(2,541
|
)
|
(2,250
|
)
|
(1,474
|
)
|
(1,521
|
)
|
(629
|
)
|
(664
|
)
|
(3,048
|
)
|
(2,823
|
)
|
(1,094
|
)
|
(1,104
|
)
|
||||||||||||||||||||
Interest income
|
124
|
157
|
32
|
41
|
94
|
141
|
58
|
101
|
171
|
169
|
||||||||||||||||||||||||||||||
Interest expense
|
(597
|
)
|
(647
|
)
|
(26
|
)
|
(43
|
)
|
(265
|
)
|
(151
|
)
|
(1,470
|
)
|
(1,382
|
)
|
(134
|
)
|
(167
|
)
|
||||||||||||||||||||
Profit/(loss) before taxation
|
964
|
3,920
|
2,314
|
3,625
|
3,320
|
3,493
|
(1,292
|
)
|
(1,569
|
)
|
2,178
|
3,916
|
||||||||||||||||||||||||||||
Tax expense
|
(197
|
)
|
(935
|
)
|
(579
|
)
|
(897
|
)
|
(708
|
)
|
(729
|
)
|
(8
|
)
|
(249
|
)
|
(533
|
)
|
(993
|
)
|
||||||||||||||||||||
Profit/(loss) for the year
|
767
|
2,985
|
1,735
|
2,728
|
2,612
|
2,764
|
(1,300
|
)
|
(1,818
|
)
|
1,645
|
2,923
|
||||||||||||||||||||||||||||
Other comprehensive (loss)/income
|
–
|
–
|
–
|
–
|
(1,105
|
)
|
921
|
(261
|
)
|
1,059
|
–
|
–
|
||||||||||||||||||||||||||||
Total comprehensive income/(loss)
|
767
|
2,985
|
1,735
|
2,728
|
1,507
|
3,685
|
(1,561
|
)
|
(759
|
)
|
1,645
|
2,923
|
||||||||||||||||||||||||||||
Dividends declared by joint ventures
|
1,400
|
1,200
|
1,224
|
1,226
|
–
|
–
|
–
|
–
|
1,750
|
–
|
||||||||||||||||||||||||||||||
Share of net profit/(loss) from joint ventures
|
384
|
1,493
|
694
|
1,091
|
1,235
|
1,307
|
(488
|
)
|
(682
|
)
|
823
|
1,462
|
||||||||||||||||||||||||||||
Share of other comprehensive (loss)/income from joint ventures (i)
|
–
|
–
|
–
|
–
|
(522
|
)
|
435
|
(98
|
)
|
397
|
–
|
–
|
(i) |
Including foreign currency translation differences.
|
22 |
LONG-TERM PREPAYMENTS AND OTHER ASSETS
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Operating rights of service stations
|
34,013
|
34,934
|
||||||
Long-term receivables from and prepayment to Sinopec Group Company and fellow subsidiaries
|
1,562
|
26,513
|
||||||
Prepayments for construction projects to third parties
|
3,926
|
5,502
|
||||||
Others (i)
|
25,925
|
24,459
|
||||||
65,426
|
91,408
|
(i) |
Others mainly comprise catalyst expenditures and improvement expenditures of property, plant and equipment.
|
2019
RMB million
|
2018
RMB million
|
|||||||
Operating rights of service stations
|
||||||||
Cost:
|
||||||||
Balance at 1 January
|
52,216
|
48,613
|
||||||
Additions
|
1,494
|
3,948
|
||||||
Decreases
|
(161
|
)
|
(345
|
)
|
||||
Balance at 31 December
|
53,549
|
52,216
|
||||||
Accumulated amortisation:
|
||||||||
Balance at 1 January
|
17,282
|
14,345
|
||||||
Additions
|
2,357
|
3,019
|
||||||
Decreases
|
(103
|
)
|
(82
|
)
|
||||
Balance at 31 December
|
19,536
|
17,282
|
||||||
Net book value at 31 December
|
34,013
|
34,934
|
23 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Structured deposits
|
3,318
|
25,550
|
||||||
Equity investments, listed and at quoted market price
|
1
|
182
|
||||||
3,319
|
25,732
|
24 |
DERIVATIVE FINANCIAL ASSETS AND DERIVATIVE FINANCIAL LIABILITIES
|
25 |
TRADE ACCOUNTS RECEIVABLE AND BILLS RECEIVABLE
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Amounts due from third parties
|
43,728
|
50,108
|
||||||
Amounts due from Sinopec Group Company and fellow subsidiaries
|
6,570
|
3,170
|
||||||
Amounts due from associates and joint ventures
|
6,415
|
4,321
|
||||||
56,713
|
57,599
|
|||||||
Less: Impairment losses for bad and doubtful debts
|
(1,848
|
)
|
(606
|
)
|
||||
Trade accounts receivable, net
|
54,865
|
56,993
|
||||||
Bills receivable
|
–
|
7,886
|
||||||
54,865
|
64,879
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Within one year
|
54,517
|
64,317
|
||||||
Between one and two years
|
190
|
353
|
||||||
Between two and three years
|
64
|
124
|
||||||
Over three years
|
94
|
85
|
||||||
54,865
|
64,879
|
2019
RMB million
|
2018
RMB million
|
|||||||
Balance at 1 January
|
606
|
612
|
||||||
Provision for the year
|
1,566
|
83
|
||||||
Written back for the year
|
(283
|
)
|
(77
|
)
|
||||
Written off for the year
|
(41
|
)
|
(19
|
)
|
||||
Others
|
–
|
7
|
||||||
Balance at 31 December
|
1,848
|
606
|
26 |
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Non-current assets
|
||||||||
Unlisted equity instruments
|
1,431
|
1,323
|
||||||
Listed equity instruments
|
90
|
127
|
||||||
Current assets
|
||||||||
Trade accounts receivable and bills receivable (i)
|
8,622
|
–
|
||||||
10,143
|
1,450
|
(i) |
As at 31 December 2019, bills receivable and certain trade accounts receivable were classified as financial assets at FVOCI, as the Group's business model is achieved
both by collecting contractual cash flows and selling of these assets.
|
27 |
INVENTORIES
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Crude oil and other raw materials
|
88,465
|
85,469
|
||||||
Work in progress
|
12,615
|
13,690
|
||||||
Finished goods
|
91,368
|
88,929
|
||||||
Spare parts and consumables
|
2,576
|
2,872
|
||||||
195,024
|
190,960
|
|||||||
Less: Allowance for diminution in value of inventories
|
(2,582
|
)
|
(6,376
|
)
|
||||
192,442
|
184,584
|
28 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Other receivables
|
25,586
|
26,455
|
||||||
Advances to suppliers
|
5,066
|
5,937
|
||||||
Value-added input tax to be deducted
|
25,313
|
21,331
|
||||||
Prepaid income tax
|
1,879
|
300
|
||||||
57,844
|
54,023
|
29 |
DEFERRED TAX ASSETS AND LIABILITIES
|
Deferred tax assets
|
Deferred tax liabilities
|
|||||||||||||||
31 December
2019
RMB million
|
31 December
2018
RMB million
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||||||||
Receivables and inventories
|
2,546
|
2,563
|
–
|
–
|
||||||||||||
Payables
|
1,142
|
1,808
|
–
|
–
|
||||||||||||
Cash flow hedges
|
116
|
1,131
|
(384
|
)
|
(27
|
)
|
||||||||||
Property, plant and equipment
|
16,463
|
15,427
|
(12,317
|
)
|
(8,666
|
)
|
||||||||||
Tax losses carried forward
|
3,594
|
3,709
|
–
|
–
|
||||||||||||
Financial assets at fair value through other comprehensive income
|
131
|
117
|
(7
|
)
|
(1
|
)
|
||||||||||
Intangible assets
|
595
|
474
|
(508
|
)
|
(535
|
)
|
||||||||||
Others
|
318
|
174
|
(882
|
)
|
(428
|
)
|
||||||||||
Deferred tax assets/(liabilities)
|
24,905
|
25,403
|
(14,098
|
)
|
(9,657
|
)
|
Balance at 1 January 2018 RMB million
|
Recognised in consolidated income statement RMB million
|
Recognised in other comprehensive income RMB million
|
Others RMB million
|
Transferred from reserve RMB million
|
Balance at 31 December 2018 RMB million
|
|||||||||||||||||||
Receivables and inventories
|
381
|
2,176
|
3
|
3
|
–
|
2,563
|
||||||||||||||||||
Payables
|
1,925
|
(117
|
)
|
–
|
–
|
–
|
1,808
|
|||||||||||||||||
Cash flow hedges
|
115
|
(10
|
)
|
2,029
|
1
|
(1,031
|
)
|
1,104
|
||||||||||||||||
Property, plant and equipment
|
4,222
|
2,650
|
(130
|
)
|
19
|
–
|
6,761
|
|||||||||||||||||
Tax losses carried forward
|
2,325
|
1,414
|
6
|
(36
|
)
|
–
|
3,709
|
|||||||||||||||||
Available-for-sale financial assets
|
117
|
–
|
–
|
(117
|
)
|
–
|
–
|
|||||||||||||||||
Financial assets at fair value through other comprehensive income
|
–
|
–
|
(1
|
)
|
117
|
–
|
116
|
|||||||||||||||||
Intangible assets
|
(336
|
)
|
273
|
–
|
2
|
–
|
(61
|
)
|
||||||||||||||||
Others
|
(84
|
)
|
(142
|
)
|
(2
|
)
|
(26
|
)
|
–
|
(254
|
)
|
|||||||||||||
Net deferred tax assets/(liabilities)
|
8,665
|
6,244
|
1,905
|
(37
|
)
|
(1,031
|
)
|
15,746
|
Balance at 1 January 2019 RMB million
|
Recognised in consolidated income statement RMB million
|
Recognised in other comprehensive income RMB million
|
Others RMB million
|
Transferred from reserve RMB million
|
Balance at 31 December 2019 RMB million
|
|||||||||||||||||||
Receivables and inventories
|
2,563
|
(17
|
)
|
–
|
–
|
–
|
2,546
|
|||||||||||||||||
Payables
|
1,808
|
(667
|
)
|
–
|
1
|
–
|
1,142
|
|||||||||||||||||
Cash flow hedges
|
1,104
|
73
|
(1,195
|
)
|
–
|
(250
|
)
|
(268
|
)
|
|||||||||||||||
Property, plant and equipment
|
6,761
|
(2,575
|
)
|
(39
|
)
|
(1
|
)
|
–
|
4,146
|
|||||||||||||||
Tax losses carried forward
|
3,709
|
(151
|
)
|
38
|
(2
|
)
|
–
|
3,594
|
||||||||||||||||
Financial assets at fair value through other comprehensive income
|
116
|
–
|
8
|
–
|
–
|
124
|
||||||||||||||||||
Intangible assets
|
(61
|
)
|
148
|
–
|
–
|
–
|
87
|
|||||||||||||||||
Others
|
(254
|
)
|
(196
|
)
|
(49
|
)
|
(65
|
)
|
–
|
(564
|
)
|
|||||||||||||
Net deferred tax assets/(liabilities)
|
15,746
|
(3,385
|
)
|
(1,237
|
)
|
(67
|
)
|
(250
|
)
|
10,807
|
30 |
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Third parties' debts
|
||||||||
Short-term bank loans
|
25,709
|
17,088
|
||||||
RMB denominated
|
25,619
|
13,201
|
||||||
US Dollar ("USD") denominated
|
90
|
3,887
|
||||||
Short-term other loans
|
22
|
300
|
||||||
RMB denominated
|
22
|
300
|
||||||
Current portion of long-term bank loans
|
1,790
|
12,074
|
||||||
RMB denominated
|
1,765
|
12,039
|
||||||
USD denominated
|
25
|
35
|
||||||
Current portion of long-term corporate bonds
|
13,000
|
–
|
||||||
RMB denominated
|
13,000
|
–
|
||||||
14,790
|
12,074
|
|||||||
40,521
|
29,462
|
|||||||
Loans from Sinopec Group Company and fellow subsidiaries
|
||||||||
Short-term loans
|
5,465
|
27,304
|
||||||
RMB denominated
|
2,709
|
3,061
|
||||||
USD denominated
|
2,236
|
22,780
|
||||||
Hong Kong Dollar ("HKD") denominated
|
495
|
1,441
|
||||||
EUR denominated
|
25
|
22
|
||||||
Current portion of long-term loans
|
37,824
|
4,361
|
||||||
RMB denominated
|
37,824
|
4,361
|
||||||
43,289
|
31,665
|
|||||||
83,810
|
61,127
|
30 |
SHORT-TERM AND LONG-TERM DEBTS AND LOANS FROM SINOPEC GROUP COMPANY AND FELLOW SUBSIDIARIES (Continued)
|
Interest rate and final maturity
|
31 December 2019 RMB million
|
31 December 2018 RMB million
|
|||||||
Third parties' debts
|
|||||||||
Long-term bank loans
|
|||||||||
RMB denominated
|
Interest rates ranging from 1.08% to 5.23% per annum at 31 December 2019 with maturities through 2034
|
31,714
|
31,025
|
||||||
USD denominated
|
Interest rates ranging from 1.55% to 4.29% per annum at 31 December 2019 with maturities through 2031
|
75
|
109
|
||||||
31,789
|
31,134
|
||||||||
Corporate bonds (i)
|
|||||||||
RMB denominated
|
Fixed interest rates ranging from 3.70% to 4.90% per annum at 31 December 2019 with maturity through 2022
|
20,000
|
20,000
|
||||||
USD denominated
|
Fixed interest rates ranging from 3.13% to 4.25% per annum at 31 December 2019 with maturities through 2043
|
12,157
|
11,951
|
||||||
32,157
|
31,951
|
||||||||
Total third parties' long-term debts
|
63,946
|
63,085
|
|||||||
Less: Current portion
|
(14,790
|
)
|
(12,074
|
)
|
|||||
49,156
|
51,011
|
||||||||
Long-term loans from Sinopec Group Company and fellow subsidiaries
|
|||||||||
RMB denominated
|
Interest rates ranging from interest free to 5.50% per annum at 31 December 2019 with maturities through 2034
|
47,450
|
46,877
|
||||||
Less: Current portion
|
(37,824
|
)
|
(4,361
|
)
|
|||||
9,626
|
42,516
|
||||||||
58,782
|
93,527
|
(i) |
These corporate bonds are carried at amortised cost. As at 31 December 2019, RMB 12,157 million (2018: RMB 11,951 million) (USD denominated corporate bonds) are
guaranteed by Sinopec Group Company.
|
31 |
LEASE LIABILITIES
|
31 December
2019
RMB million
|
1 January
2019
RMB million
|
|||||||
Lease liabilities
|
||||||||
Current
|
15,198
|
13,894
|
||||||
Non-current
|
177,674
|
184,670
|
||||||
192,872
|
198,564
|
32 |
TRADE ACCOUNTS PAYABLE AND BILLS PAYABLE
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Amounts due to third parties
|
166,480
|
170,818
|
||||||
Amounts due to Sinopec Group Company and fellow subsidiaries
|
11,370
|
9,142
|
||||||
Amounts due to associates and joint ventures
|
10,108
|
6,381
|
||||||
187,958
|
186,341
|
|||||||
Bills payable
|
11,834
|
6,416
|
||||||
Trade accounts payable and bills payable measured at amortised cost
|
199,792
|
192,757
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Within 1 month or on demand
|
185,377
|
182,763
|
||||||
Between 1 month and 6 months
|
8,808
|
6,670
|
||||||
Over 6 months
|
5,607
|
3,324
|
||||||
199,792
|
192,757
|
33 |
CONTRACT LIABILITIES
|
34 |
OTHER PAYABLES
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Salaries and welfare payable
|
4,769
|
7,312
|
||||||
Interest payable
|
612
|
634
|
||||||
Payables for constructions
|
50,612
|
54,992
|
||||||
Other payables
|
22,778
|
22,852
|
||||||
Financial liabilities carried at amortised costs
|
78,771
|
85,790
|
||||||
Taxes other than income tax
|
66,075
|
80,361
|
||||||
144,846
|
166,151
|
35 |
PROVISIONS
|
2019
RMB million
|
2018
RMB million
|
|||||||
Balance at 1 January
|
42,007
|
39,407
|
||||||
Provision for the year
|
1,408
|
1,567
|
||||||
Accretion expenses
|
1,418
|
1,438
|
||||||
Decrease for the year
|
(2,439
|
)
|
(598
|
)
|
||||
Exchange adjustments
|
44
|
193
|
||||||
Balance at 31 December
|
42,438
|
42,007
|
36 |
SHARE CAPITAL
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Registered, issued and fully paid
|
||||||||
95,557,771,046 listed A shares (2018: 95,557,771,046) of RMB 1.00 each
|
95,558
|
95,558
|
||||||
25,513,438,600 listed H shares (2018: 25,513,438,600) of RMB 1.00 each
|
25,513
|
25,513
|
||||||
121,071
|
121,071
|
37 |
COMMITMENTS AND CONTINGENT LIABILITIES
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Within one year
|
–
|
15,625
|
||||||
Later than one year but not later than five years
|
–
|
55,882
|
||||||
Later than five years
|
–
|
281,287
|
||||||
–
|
352,794
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Authorised and contracted for (i)
|
138,088
|
141,045
|
||||||
Authorised but not contracted for
|
63,967
|
54,392
|
||||||
202,055
|
195,437
|
(i) |
The investment commitments of the Group is RMB 6,100 million (2018: RMB 5,553 million).
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Within one year
|
302
|
380
|
||||||
Between one and two years
|
69
|
79
|
||||||
Between two and three years
|
34
|
33
|
||||||
Between three and four years
|
30
|
28
|
||||||
Between four and five years
|
29
|
28
|
||||||
Thereafter
|
845
|
852
|
||||||
1,309
|
1,400
|
37 |
COMMITMENTS AND CONTINGENT LIABILITIES (Continued)
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Joint ventures
|
7,100
|
5,033
|
||||||
Associates (ii)
|
10,140
|
12,168
|
||||||
Others (iii)
|
–
|
7,197
|
||||||
17,240
|
24,398
|
(ii) |
The Group provided a guarantee in respect to standby credit facilities granted to Zhongtian Synergetic Energy Company Limited ("Zhongtian Synergetic Energy") by banks
amount to RMB 17,050 million. As at 31 December 2019, the amount withdrawn by Zhongtian Synergetic Energy and guaranteed by the Group was RMB 10,140 million (2018: RMB 12,168 million).
|
(iii) |
The Group provided a guarantee in respect to the loan of New Bright International Development Limited borrowed from Sinopec Overseas Oil & Gas Limited. As at 31
December 2019, the loan agreement was terminated, in consequence, the guarantee agreement was terminated.
|
38 |
RELATED PARTY TRANSACTIONS
|
(a) |
Transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures
|
Note
|
2019
RMB million
|
2018
RMB million
|
|||
Sales of goods
|
(i)
|
295,532
|
272,789
|
||
Purchases
|
(ii)
|
197,308
|
192,224
|
||
Transportation and storage
|
(iii)
|
8,206
|
7,319
|
||
Exploration and development services
|
(iv)
|
33,310
|
23,489
|
||
Production related services
|
(v)
|
38,668
|
28,472
|
||
Ancillary and social services
|
(vi)
|
3,098
|
6,664
|
||
Operating lease charges for land
|
(vii)
|
–
|
7,765
|
||
Operating lease charges for buildings
|
(vii)
|
–
|
521
|
||
Other operating lease charges
|
(vii)
|
–
|
869
|
||
Agency commission income
|
(viii)
|
116
|
113
|
||
Interest income
|
(ix)
|
1,066
|
848
|
||
Interest expense
|
(x)
|
1,334
|
1,110
|
||
Net deposits withdrawn from related parties
|
(ix)
|
5,350
|
6,457
|
||
Net funds obtained from related parties
|
(xi)
|
3,438
|
31,684
|
38 |
RELATED PARTY TRANSACTIONS (Continued)
|
(a) |
Transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures (Continued)
|
(i) |
Sales of goods represent the sale of crude oil, intermediate petrochemical products, petroleum products and ancillary materials.
|
(ii) |
Purchases represent the purchase of materials and utility supplies directly related to the Group's operations such as the procurement of raw and ancillary materials and
related services, supply of water, electricity and gas.
|
(iii) |
Transportation and storage represent the cost for the use of railway, road and marine transportation services, pipelines, loading, unloading and storage facilities. (iv)
Exploration and development services comprise direct costs incurred in the exploration and development such as geophysical, drilling, well testing and well measurement services.
|
(v) |
Production related services represent ancillary services rendered in relation to the Group's operations such as equipment repair and general maintenance, insurance
premium, technical research, communications, firefighting, security, product quality testing and analysis, information technology, design and engineering, construction of oilfield ground facilities, refineries and chemical plants,
manufacture of replacement parts and machinery, installation, project management, environmental protection and management services.
|
(vi) |
Ancillary and social services represent expenditures for social welfare and support services such as educational facilities, media communication services, sanitation,
accommodation, canteens, and property maintenance.
|
(vii) |
Operating lease charges represent the rental incurred for operating leases in respect of land, buildings and equipment leased from Sinopec Group Company and fellow
subsidiaries, associates and joint ventures. No lease charges have incurred during the current year because of the adoption of IFRS 16 Leases.
|
(viii) |
Agency commission income represents commission earned for acting as an agent in respect of sales of products and purchase of materials for certain entities owned by
Sinopec Group Company.
|
(ix) |
Interest income represents interest received from deposits placed with Sinopec Finance and Sinopec Century Bright Capital Investment Limited, finance companies controlled
by Sinopec Group Company. The applicable interest rate is determined in accordance with the prevailing saving deposit rate. The balance of deposits at 31 December 2019 was RMB 35,707 million (2018: RMB 41,057 million).
|
(x) |
Interest expense represents interest charges on the loans obtained from Sinopec Group Company and fellow subsidiaries. (xi) The Group obtained loans, discounted bills and
others from Sinopec Group Company and fellow subsidiaries.
|
• |
The Company has entered into a non-exclusive "Agreement for Mutual Provision of Products and Ancillary Services" ("Mutual Provision Agreement") with Sinopec Group Company
effective from 1 January 2000 in which Sinopec Group Company has agreed to provide the Group with certain ancillary production services, construction services, information advisory services, supply services and other services and
products. While each of Sinopec Group Company and the Company is permitted to terminate the Mutual Provision Agreement upon at least six months notice, Sinopec Group Company has agreed not to terminate the agreement if the Group is
unable to obtain comparable services from a third party. The pricing policy for these services and products provided by Sinopec Group Company to the Group is as follows:
|
(1) |
the government-prescribed price;
|
(2) |
where there is no government-prescribed price, the government-guidance price;
|
(3) |
where there is neither a government-prescribed price nor a government-guidance price, the market price; or
|
(4) |
where none of the above is applicable, the price to be agreed between the parties, which shall be based on a reasonable cost incurred in providing such services plus a
profit margin not exceeding 6%.
|
• |
The Company has entered into a non-exclusive "Agreement for Provision of Cultural and Educational, Health Care and Community Services" with Sinopec Group Company
effective from 1 January 2000 in which Sinopec Group Company has agreed to provide the Group with certain cultural, educational, health care and community services on the same pricing terms and termination conditions as described in the
above Mutual Provision Agreement.
|
• |
The Company has entered into a series of lease agreements with Sinopec Group Company to lease certain lands and buildings effective on 1 January 2000. The lease term is
40 or 50 years for lands and 20 years for buildings, respectively. The Company and Sinopec Group Company can renegotiate the rental amount every three years for land. The Company and Sinopec Group Company can renegotiate the rental
amount for buildings every year. However such amount cannot exceed the market price as determined by an independent third party.
|
• |
The Company has entered into agreements with Sinopec Group Company effective from 1 January 2000 under which the Group has been granted the right to use certain
trademarks, patents, technology and computer software developed by Sinopec Group Company.
|
• |
The Company has entered into a service stations franchise agreement with Sinopec Group Company effective from 1 January 2000 under which its service stations and retail
stores would exclusively sell the refined products supplied by the Group.
|
38 |
RELATED PARTY TRANSACTIONS (Continued)
|
(a) |
Transactions with Sinopec Group Company and fellow subsidiaries, associates and joint ventures (Continued)
|
• |
On the basis of a series of continuing connected transaction agreements signed in 2000, the Company and Sinopec Group Company have signed the Fifth Supplementary
Agreement and the Fourth Revised Memorandum of land use rights leasing contract on 24 August 2018, which took effect on 1 January 2019 and made adjustment to "Mutual Supply Agreement", "Agreement for Provision of Cultural and
Educational, Health Care and Community Services", "Buildings Leasing Contract", "Intellectual Property Contract" and "Land Use Rights Leasing Contract", etc.
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Trade accounts receivable and bills receivable
|
12,968
|
7,555
|
||||||
Financial assets at fair value through other comprehensive income
|
407
|
–
|
||||||
Prepaid expenses and other current assets
|
12,723
|
7,665
|
||||||
Long-term prepayments and other assets
|
734
|
23,482
|
||||||
Total
|
26,832
|
38,702
|
||||||
Trade accounts payable and bills payable
|
25,296
|
17,530
|
||||||
Contract liabilities
|
4,464
|
3,273
|
||||||
Other payables
|
16,141
|
18,160
|
||||||
Other long-term liabilities
|
–
|
12,470
|
||||||
Short-term loans and current portion of long-term loans from Sinopec Group Company and fellow subsidiaries
|
43,289
|
31,665
|
||||||
Long-term loans excluding current portion from Sinopec Group Company and fellow subsidiaries
|
9,626
|
42,516
|
||||||
Lease liabilities (including to be paid within one year)
|
171,402
|
—
|
||||||
Total
|
270,218
|
125,614
|
(b) |
Key management personnel emoluments
|
2019
RMB' 000
|
2018
RMB' 000
|
|||||||
Short-term employee benefits
|
9,209
|
5,745
|
||||||
Retirement scheme contributions
|
536
|
351
|
||||||
9,745
|
6,096
|
(c) |
Contributions to defined contribution retirement plans
|
38 |
RELATED PARTY TRANSACTIONS (Continued)
|
(d) |
Transactions with other state-controlled entities in the PRC
|
• |
sales and purchases of goods and ancillary materials;
|
• |
rendering and receiving services;
|
• |
lease of assets;
|
• |
depositing and borrowing money; and
|
• |
uses of public utilities.
|
39 |
EMPLOYEE BENEFITS PLAN
|
40 |
SEGMENT REPORTING
|
(i) |
Exploration and production, which explores and develops oil fields, produces crude oil and natural gas and sells such products to the refining segment of the Group and
external customers.
|
(ii) |
Refining, which processes and purifies crude oil, that is sourced from the exploration and production segment of the Group and external suppliers, and manufactures and
sells petroleum products to the chemicals and marketing and distribution segments of the Group and external customers.
|
(iii) |
Marketing and distribution, which owns and operates oil depots and service stations in the PRC, and distributes and sells refined petroleum products (mainly gasoline and
diesel) in the PRC through wholesale and retail sales networks.
|
(iv) |
Chemicals, which manufactures and sells petrochemical products, derivative petrochemical products and other chemical products mainly to external customers.
|
(v) |
Corporate and others, which largely comprises the trading activities of the import and export companies of the Group and research and development undertaken by other
subsidiaries.
|
40 |
SEGMENT REPORTING (Continued)
|
(1) |
Information of reportable segmental revenues, profits or losses, assets and liabilities
|
2019 RMB million
|
2018 RMB million
|
|||||||
Turnover
|
||||||||
Exploration and production
|
||||||||
External sales
|
111,114
|
93,499
|
||||||
Inter-segment sales
|
89,315
|
95,954
|
||||||
200,429
|
189,453
|
|||||||
Refining
|
||||||||
External sales
|
141,674
|
148,930
|
||||||
Inter-segment sales
|
1,077,018
|
1,109,088
|
||||||
1,218,692
|
1,258,018
|
|||||||
Marketing and distribution
|
||||||||
External sales
|
1,393,557
|
1,408,989
|
||||||
Inter-segment sales
|
4,159
|
5,224
|
||||||
1,397,716
|
1,414,213
|
|||||||
Chemicals
|
||||||||
External sales
|
425,508
|
457,406
|
||||||
Inter-segment sales
|
54,865
|
73,835
|
||||||
480,373
|
531,241
|
|||||||
Corporate and others
|
||||||||
External sales
|
828,635
|
716,789
|
||||||
Inter-segment sales
|
654,337
|
650,271
|
||||||
1,482,972
|
1,367,060
|
|||||||
Elimination of inter-segment sales
|
(1,879,694
|
)
|
(1,934,372
|
)
|
||||
Turnover
|
2,900,488
|
2,825,613
|
||||||
Other operating revenues
|
||||||||
Exploration and production
|
10,283
|
10,738
|
||||||
Refining
|
5,464
|
5,389
|
||||||
Marketing and distribution
|
33,247
|
32,424
|
||||||
Chemicals
|
14,861
|
15,492
|
||||||
Corporate and others
|
1,850
|
1,523
|
||||||
Other operating revenues
|
65,705
|
65,566
|
||||||
Turnover and other operating revenues
|
2,966,193
|
2,891,179
|
40 |
SEGMENT REPORTING (Continued)
|
(1) |
Information of reportable segmental revenues, profits or losses, assets and liabilities (Continued)
|
2019
RMB million
|
2018
RMB million
|
|||||||
Result
|
||||||||
Operating profit/(loss)
|
||||||||
By segment
|
||||||||
– Exploration and production
|
9,284
|
(10,107
|
)
|
|||||
– Refining
|
30,632
|
54,827
|
||||||
– Marketing and distribution
|
29,107
|
23,464
|
||||||
– Chemicals
|
17,151
|
27,007
|
||||||
– Corporate and others
|
64
|
(9,293
|
)
|
|||||
– Elimination
|
(40
|
)
|
(3,634
|
)
|
||||
Total segment operating profit
|
86,198
|
82,264
|
||||||
Share of profits/(losses) from associates and joint ventures
|
||||||||
– Exploration and production
|
3,167
|
2,598
|
||||||
– Refining
|
(640
|
)
|
109
|
|||||
– Marketing and distribution
|
3,309
|
3,155
|
||||||
– Chemicals
|
4,611
|
6,298
|
||||||
– Corporate and others
|
2,330
|
1,814
|
||||||
Aggregate share of profits from associates and joint ventures
|
12,777
|
13,974
|
||||||
Investment (losses)/income
|
||||||||
– Exploration and production
|
(19
|
)
|
(3
|
)
|
||||
– Refining
|
59
|
315
|
||||||
– Marketing and distribution
|
73
|
43
|
||||||
– Chemicals
|
578
|
596
|
||||||
– Corporate and others
|
228
|
920
|
||||||
Aggregate investment income
|
919
|
1,871
|
||||||
Net finance costs
|
(9,967
|
)
|
1,001
|
|||||
Profit before taxation
|
89,927
|
99,110
|
31 December 2019
RMB million
|
31 December 2018
RMB million
|
|||||||
Assets
|
||||||||
Segment assets
|
||||||||
– Exploration and production
|
410,950
|
321,686
|
||||||
– Refining
|
321,080
|
271,356
|
||||||
– Marketing and distribution
|
399,242
|
317,641
|
||||||
– Chemicals
|
175,884
|
156,865
|
||||||
– Corporate and others
|
131,686
|
152,799
|
||||||
Total segment assets
|
1,438,842
|
1,220,347
|
||||||
Interest in associates and joint ventures
|
152,204
|
145,721
|
||||||
Financial assets at fair value through other comprehensive income
|
1,521
|
1,450
|
||||||
Deferred tax assets
|
17,616
|
21,694
|
||||||
Cash and cash equivalents, time deposits with financial institutions
|
127,927
|
167,015
|
||||||
Other unallocated assets
|
16,961
|
36,081
|
||||||
Total assets
|
1,755,071
|
1,592,308
|
||||||
Liabilities
|
||||||||
Segment liabilities
|
||||||||
– Exploration and production
|
167,933
|
94,170
|
||||||
– Refining
|
122,264
|
103,809
|
||||||
– Marketing and distribution
|
226,531
|
159,536
|
||||||
– Chemicals
|
54,462
|
37,413
|
||||||
– Corporate and others
|
137,881
|
144,216
|
||||||
Total segment liabilities
|
709,071
|
539,144
|
||||||
Short-term debts
|
40,521
|
29,462
|
||||||
Income tax payable
|
3,264
|
6,699
|
||||||
Long-term debts
|
49,156
|
51,011
|
||||||
Loans from Sinopec Group Company and fellow subsidiaries
|
52,915
|
74,181
|
||||||
Deferred tax liabilities
|
6,809
|
5,948
|
||||||
Other unallocated liabilities
|
17,500
|
29,328
|
||||||
Total liabilities
|
879,236
|
735,773
|
40 |
SEGMENT REPORTING (Continued)
|
(1) |
Information of reportable segmental revenues, profits or losses, assets and liabilities (Continued)
|
2019 RMB million
|
2018 RMB million
|
|||||||
Capital expenditure
|
||||||||
Exploration and production
|
61,739
|
42,155
|
||||||
Refining
|
31,372
|
27,908
|
||||||
Marketing and distribution
|
29,566
|
21,429
|
||||||
Chemicals
|
22,438
|
19,578
|
||||||
Corporate and others
|
1,979
|
6,906
|
||||||
Depreciation, depletion and amortisation
|
147,094
|
117,976
|
||||||
Exploration and production
|
50,732
|
60,331
|
||||||
Refining
|
19,676
|
18,164
|
||||||
Marketing and distribution
|
21,572
|
16,296
|
||||||
Chemicals
|
13,966
|
13,379
|
||||||
Corporate and others
|
2,866
|
1,797
|
||||||
Impairment losses on long-lived assets
|
108,812
|
109,967
|
||||||
Exploration and production
|
3
|
4,274
|
||||||
Refining
|
245
|
353
|
||||||
Marketing and distribution
|
80
|
264
|
||||||
Chemicals
|
17
|
1,374
|
||||||
Corporate and others
|
–
|
16
|
||||||
345
|
6,281
|
(2) |
Geographical information
|
2019 RMB million
|
2018 RMB million
|
|||||||
External sales
|
||||||||
Mainland China
|
2,131,078
|
2,119,580
|
||||||
Singapore
|
505,672
|
395,129
|
||||||
Others
|
329,443
|
376,470
|
||||||
2,966,193
|
2,891,179
|
31 December 2019 RMB million
|
31 December 2018 RMB million
|
|||||||
Non-current assets
|
||||||||
Mainland China
|
1,235,676
|
989,668
|
||||||
Others
|
52,705
|
50,892
|
||||||
1,288,381
|
1,040,560
|
41 |
PRINCIPAL SUBSIDIARIES
|
Name of company
|
Particulars of issued capital (million)
|
Interests held by Company %
|
Interests held by the non-controlling interests %
|
Principal activities
|
Sinopec Great Wall Energy & Chemical Company Limited
|
RMB 22,761
|
100.00
|
–
|
Coal chemical industry investment management, production and sale of coal chemical products
|
Sinopec Yangzi Petrochemical Company Limited
|
RMB 15,651
|
100.00
|
–
|
Manufacturing of intermediate petrochemical products and petroleum products
|
Sinopec Pipeline Storage & Transportation Company Limited
|
RMB 12,000
|
100.00
|
–
|
Pipeline storage and transportation of crude oil
|
Sinopec Overseas Investment Holding Limited ("SOIH")
|
USD 1,662
|
100.00
|
–
|
Investment holding of overseas business
|
Sinopec International Petroleum Exploration and Production Limited ("SIPL")
|
RMB 8,000
|
100.00
|
–
|
Investment in exploration, production and sale of petroleum and natural gas
|
Sinopec Yizheng Chemical Fibre Limited Liability Company
|
RMB 4,000
|
100.00
|
–
|
Production and sale of polyester chips and polyester fibres
|
Sinopec Lubricant Company Limited
|
RMB 3,374
|
100.00
|
–
|
Production and sale of refined petroleum products, lubricant base oil, and petrochemical materials
|
China International United Petroleum and Chemical Company Limited
|
RMB 5,000
|
100.00
|
–
|
Trading of crude oil and petrochemical products
|
Sinopec Qingdao Petrochemical Company Limited
|
RMB 1,595
|
100.00
|
–
|
Manufacturing of intermediate petrochemical products and petroleum products
|
Sinopec Catalyst Company Limited
|
RMB 1,500
|
100.00
|
–
|
Production and sale of catalyst products
|
China Petrochemical International Company Limited
|
RMB 1,400
|
100.00
|
–
|
Trading of petrochemical products
|
Sinopec Chemical Sales Company Limited
|
RMB 1,000
|
100.00
|
–
|
Marketing and distribution of petrochemical products
|
Sinopec Beihai Refining and Chemical Limited Liability Company
|
RMB 5,294
|
98.98
|
1.02
|
Import and processing of crude oil, production, storage and sale of petroleum products and petrochemical products
|
Sinopec Qingdao Refining and Chemical Company Limited
|
RMB 5,000
|
85.00
|
15.00
|
Manufacturing of intermediate petrochemical products and petroleum products
|
Sinopec Hainan Refining and Chemical Company Limited
|
RMB 9,628
|
75.00
|
25.00
|
Manufacturing of intermediate petrochemical products and petroleum products
|
Sinopec Marketing Company Limited ("Marketing Company")
|
RMB 28,403
|
70.42
|
29.58
|
Marketing and distribution of refined petroleum products
|
Shanghai SECCO
|
RMB 7,801
|
67.60
|
32.40
|
Production and sale of petrochemical products
|
Sinopec-SK (Wuhan) Petrochemical Company Limited ("Sinopec-SK")
|
RMB 7,193
|
59.00
|
41.00
|
Production, sale, research and development of petrochemical products, ethylene and downstream byproducts
|
Sinopec Kantons Holdings Limited ("Sinopec Kantons")
|
HKD 248
|
60.33
|
39.67
|
Provision of crude oil jetty services and natural gas pipeline transmission services
|
Gaoqiao Petrochemical Company Limited
|
RMB 10,000
|
55.00
|
45.00
|
Manufacturing of intermediate petrochemical products and petroleum products
|
Sinopec Shanghai Petrochemical Company Limited ("Shanghai Petrochemical")
|
RMB 10,824
|
50.44
|
49.56
|
Manufacturing of synthetic fibres, resin and plastics, intermediate petrochemical products and petroleum products
|
Fujian Petrochemical Company Limited ("Fujian Petrochemical") (i)
|
RMB 8,140
|
50.00
|
50.00
|
Manufacturing of plastics, intermediate petrochemical products and petroleum products
|
(i) |
The Group consolidated the financial statements of the entity because it is exposed to, or has rights to, variable returns from its involvement with the entity and has
the ability to affect those returns through its power over the entity.
|
41 |
PRINCIPAL SUBSIDIARIES (Continued)
|
Year ended 31 December
|
Marketing Company
|
SIPL
|
Shanghai Petrochemical
|
Fujian Petrochemical
|
Sinopec Kantons
|
Shanghai SECCO
|
Sinopec-SK
|
|||||||||||||||||||||||||||||||||||||||||||||||||
At 31 December2019 RMB million
|
At 31 December2018 RMB million
|
At 31 December2019 RMB million
|
At 31 December2018 RMB million
|
At 31 December2019 RMB million
|
At 31 December2018 RMB million
|
At 31 December2019 RMB million
|
At 31 December2018 RMB million
|
At 31 December2019 RMB million
|
At 31 December2018 RMB million
|
At 31 December2019 RMB million
|
At 31 December2018 RMB million
|
At 31 December2019 RMB million
|
At 31 December2018 RMB million
|
|||||||||||||||||||||||||||||||||||||||||||
Current assets
|
129,266
|
130,861
|
19,151
|
16,731
|
22,309
|
25,299
|
1,788
|
816
|
1,284
|
1,209
|
11,858
|
9,537
|
5,337
|
2,750
|
||||||||||||||||||||||||||||||||||||||||||
Current liabilities
|
(192,106
|
)
|
(181,766
|
)
|
(456
|
)
|
(483
|
)
|
(15,479
|
)
|
(13,913
|
)
|
(804
|
)
|
(50
|
)
|
(2,961
|
)
|
(3,722
|
)
|
(3,196
|
)
|
(2,233
|
)
|
(15,037
|
)
|
(2,333
|
)
|
||||||||||||||||||||||||||||
Net current (liabilities)/assets
|
(62,840
|
)
|
(50,905
|
)
|
18,695
|
16,248
|
6,830
|
11,386
|
984
|
766
|
(1,677
|
)
|
(2,513
|
)
|
8,662
|
7,304
|
(9,700
|
)
|
417
|
|||||||||||||||||||||||||||||||||||||
Non-current assets
|
340,356
|
261,062
|
13,234
|
38,020
|
23,185
|
19,087
|
11,558
|
11,444
|
12,777
|
12,895
|
11,473
|
12,301
|
21,567
|
12,612
|
||||||||||||||||||||||||||||||||||||||||||
Non-current liabilities
|
(58,732
|
)
|
(2,086
|
)
|
(16,952
|
)
|
(31,050
|
)
|
(21
|
)
|
(10
|
)
|
(688
|
)
|
(688
|
)
|
(158
|
)
|
(132
|
)
|
(1,627
|
)
|
(1,698
|
)
|
(7
|
)
|
–
|
|||||||||||||||||||||||||||||
Net non-current
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
assets/(liabilities)
|
281,624
|
258,976
|
(3,718
|
)
|
6,970
|
23,164
|
19,077
|
10,870
|
10,756
|
12,619
|
12,763
|
9,846
|
10,603
|
21,560
|
12,612
|
|||||||||||||||||||||||||||||||||||||||||
Net assets
|
218,784
|
208,071
|
14,977
|
23,218
|
29,994
|
30,463
|
11,854
|
11,522
|
10,942
|
10,250
|
18,508
|
17,907
|
11,860
|
13,029
|
||||||||||||||||||||||||||||||||||||||||||
Attributable to owners of the Company
|
148,256
|
141,244
|
6,308
|
5,266
|
14,998
|
15,295
|
5,927
|
5,761
|
6,583
|
6,165
|
12,511
|
12,105
|
6,997
|
8,469
|
||||||||||||||||||||||||||||||||||||||||||
Attributable to non-controlling interests
|
70,528
|
66,827
|
8,669
|
17,952
|
14,996
|
15,168
|
5,927
|
5,761
|
4,359
|
4,085
|
5,997
|
5,802
|
4,863
|
4,560
|
Year ended 31 December
|
Marketing Company
|
SIPL
|
Shanghai Petrochemical
|
Fujian Petrochemical
|
Sinopec Kantons
|
Shanghai SECCO
|
Sinopec-SK
|
|||||||||||||||||||||||||||||||||||||||||||||||||
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
|||||||||||||||||||||||||||||||||||||||||||
Turnover
|
1,427,705
|
1,443,698
|
3,282
|
5,037
|
100,270
|
107,689
|
5,535
|
5,261
|
1,274
|
1,398
|
28,341
|
26,320
|
31,016
|
17,134
|
||||||||||||||||||||||||||||||||||||||||||
Profit for the year
|
22,992
|
22,046
|
2,831
|
3,272
|
2,227
|
5,336
|
477
|
1,576
|
1,131
|
1,065
|
3,137
|
3,099
|
701
|
1,879
|
||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income
|
23,362
|
22,589
|
2,693
|
4,536
|
2,235
|
5,336
|
477
|
1,576
|
1,140
|
1,067
|
3,137
|
3,099
|
701
|
1,879
|
||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to non-controlling interests
|
8,289
|
7,794
|
1,651
|
2,737
|
1,113
|
2,645
|
238
|
788
|
433
|
399
|
1,016
|
1,004
|
245
|
658
|
||||||||||||||||||||||||||||||||||||||||||
Dividends paid to
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
non-controlling interests
|
4,830
|
3,964
|
10,926
|
–
|
1,344
|
1,616
|
650
|
600
|
159
|
104
|
822
|
1,191
|
–
|
–
|
Year ended 31 December
|
Marketing Company
|
SIPL
|
Shanghai Petrochemical
|
Fujian Petrochemical
|
Sinopec Kantons
|
Shanghai SECCO
|
Sinopec-SK
|
|||||||||||||||||||||||||||||||||||||||||||||||||
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
2019 RMB million
|
2018 RMB million
|
|||||||||||||||||||||||||||||||||||||||||||
Net cash generated from operating activities
|
40,260
|
24,825
|
2,128
|
3,467
|
5,057
|
6,659
|
622
|
38
|
716
|
738
|
4,601
|
3,766
|
5,532
|
3,308
|
||||||||||||||||||||||||||||||||||||||||||
Net cash (used in)/generated from investing activities
|
(25,923
|
)
|
8,339
|
678
|
4,096
|
(4,623
|
)
|
(1,928
|
)
|
(472
|
)
|
(215
|
)
|
397
|
648
|
(91
|
)
|
(480
|
)
|
(4,987
|
)
|
(3,099
|
)
|
|||||||||||||||||||||||||||||||||
Net cash (used in)/generated from financing activities
|
(21,535
|
)
|
(32,084
|
)
|
(116
|
)
|
(5,419
|
)
|
(1,737
|
)
|
(3,507
|
)
|
(163
|
)
|
43
|
(1,208
|
)
|
(1,551
|
)
|
(2,050
|
)
|
(3,676
|
)
|
250
|
525
|
|||||||||||||||||||||||||||||||
Net (decrease)/increase in cash and cash equivalents
|
(7,198
|
)
|
1,080
|
2,690
|
2,144
|
(1,303
|
)
|
1,224
|
(13
|
)
|
(134
|
)
|
(95
|
)
|
(165
|
)
|
2,460
|
(390
|
)
|
795
|
734
|
|||||||||||||||||||||||||||||||||||
Cash and cash equivalents at 1 January
|
14,142
|
12,921
|
5,993
|
3,605
|
8,742
|
7,504
|
92
|
226
|
198
|
343
|
6,817
|
7,205
|
798
|
64
|
||||||||||||||||||||||||||||||||||||||||||
Effect of foreign currency exchange rate changes
|
(43
|
)
|
141
|
150
|
244
|
11
|
14
|
–
|
–
|
14
|
20
|
1
|
2
|
–
|
–
|
|||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents at 31 December
|
6,901
|
14,142
|
8,833
|
5,993
|
7,450
|
8,742
|
79
|
92
|
117
|
198
|
9,278
|
6,817
|
1,593
|
798
|
42 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES
|
• |
credit risk;
|
• |
liquidity risk; and
|
• |
market risk.
|
(i) |
Risk management
|
(ii) |
Impairment of financial assets
|
42 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued)
|
31 December 2019
|
||||||||||||||||||||||||
Carrying amount RMB million
|
Total contractual undiscounted cash flow RMB million
|
Within 1 year or on demand RMB million
|
More than 1 year but less than 2 years
RMB million
|
More than 2 years but less than 5
years RMB million
|
More than 5 years RMB million
|
|||||||||||||||||||
Short-term debts
|
40,521
|
42,240
|
42,240
|
–
|
–
|
–
|
||||||||||||||||||
Long-term debts
|
49,156
|
62,903
|
952
|
6,271
|
25,189
|
30,491
|
||||||||||||||||||
Loans from Sinopec Group Company and fellow subsidiaries
|
52,915
|
54,508
|
43,623
|
985
|
7,088
|
2,812
|
||||||||||||||||||
Lease liabilities
|
192,872
|
367,711
|
16,488
|
15,676
|
45,008
|
290,539
|
||||||||||||||||||
Derivative financial liabilities
|
2,729
|
2,729
|
2,729
|
–
|
–
|
–
|
||||||||||||||||||
Trade accounts payable and bills payable
|
199,792
|
199,792
|
199,792
|
–
|
–
|
–
|
||||||||||||||||||
Other payables
|
78,771
|
78,771
|
78,771
|
–
|
–
|
–
|
||||||||||||||||||
616,756
|
808,654
|
384,595
|
22,932
|
77,285
|
323,842
|
31 December 2018
|
||||||||||||||||||||||||
Carrying amount RMB million
|
Total contractual undiscounted cash flow RMB million
|
Within 1 year or on demand RMB million
|
More than 1 year but less than 2 years RMB million
|
More than 2 years but less than 5 years RMB million
|
More than 5 years RMB million
|
|||||||||||||||||||
Short-term debts
|
29,462
|
30,123
|
30,123
|
–
|
–
|
–
|
||||||||||||||||||
Long-term debts
|
51,011
|
61,809
|
1,889
|
16,938
|
27,190
|
15,792
|
||||||||||||||||||
Loans from Sinopec Group Company and fellow subsidiaries
|
74,181
|
75,207
|
32,127
|
37,977
|
3,741
|
1,362
|
||||||||||||||||||
Derivative financial liabilities
|
13,571
|
13,571
|
13,571
|
–
|
–
|
–
|
||||||||||||||||||
Trade accounts payable and bills payable
|
192,757
|
192,757
|
192,757
|
–
|
–
|
–
|
||||||||||||||||||
Other payables
|
85,790
|
85,790
|
85,790
|
–
|
–
|
–
|
||||||||||||||||||
446,772
|
459,257
|
356,257
|
54,915
|
30,931
|
17,154
|
42 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued)
|
31 December
2019
million
|
31 December
2018
million
|
|||||||
Gross exposure arising from loans and lease liabilities
|
||||||||
USD
|
103
|
668
|
||||||
SGD
|
4
|
–
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
USD
|
27
|
172
|
||||||
SGD
|
1
|
–
|
42 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued)
|
(i) |
Financial instruments carried at fair value
|
- |
Level 1 (highest level): fair values measured using quoted prices (unadjusted) in active markets for identical financial instruments.
|
- |
Level 2: fair values measured using quoted prices in active markets for similar financial instruments, or using valuation techniques in which all significant inputs are
directly or indirectly based on observable market data.
|
- |
Level 3 (lowest level): fair values measured using valuation techniques in which any significant input is not based on observable market data.
|
Level 1
RMB million
|
Level 2
RMB million
|
Level 3
RMB million
|
Total
RMB million
|
|||||||||||||
Assets
|
||||||||||||||||
Financial assets at fair value through profit and loss:
|
||||||||||||||||
– Structured deposits
|
–
|
–
|
3,318
|
3,318
|
||||||||||||
– Equity investments, listed and at quoted market price
|
1
|
–
|
–
|
1
|
||||||||||||
Derivative financial assets:
|
||||||||||||||||
– Derivative financial assets
|
128
|
709
|
–
|
837
|
||||||||||||
Financial assets at fair value through other comprehensive income
|
||||||||||||||||
– Equity instruments
|
90
|
–
|
1,431
|
1,521
|
||||||||||||
– Trade accounts receivable and bills receivable
|
–
|
–
|
8,622
|
8,622
|
||||||||||||
219
|
709
|
13,371
|
14,299
|
|||||||||||||
Liabilities
|
||||||||||||||||
Derivative financial liabilities
|
||||||||||||||||
– Derivative financial liabilities
|
1,209
|
1,520
|
–
|
2,729
|
||||||||||||
1,209
|
1,520
|
–
|
2,729
|
Level 1
RMB million
|
Level 2
RMB million
|
Level 3
RMB million
|
Total
RMB million
|
|||||||||||||
Assets
|
||||||||||||||||
Financial assets at fair value through profit or loss:
|
||||||||||||||||
– Structured deposits
|
–
|
–
|
25,550
|
25,550
|
||||||||||||
– Equity investments, listed and at quoted market price
|
182
|
–
|
–
|
182
|
||||||||||||
Derivative financial assets:
|
||||||||||||||||
– Derivative financial assets
|
874
|
7,013
|
–
|
7,887
|
||||||||||||
Financial assets at fair value through other comprehensive income:
|
||||||||||||||||
– Equity instruments
|
127
|
–
|
1,323
|
1,450
|
||||||||||||
1,183
|
7,013
|
26,873
|
35,069
|
|||||||||||||
Liabilities
|
||||||||||||||||
Derivative financial liabilities
|
||||||||||||||||
– Derivative financial liabilities
|
5,500
|
8,071
|
–
|
13,571
|
||||||||||||
5,500
|
8,071
|
–
|
13,571
|
42 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES (Continued)
|
(ii) |
Fair values of financial instruments carried at other than fair value
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Carrying amount
|
63,946
|
63,085
|
||||||
Fair value
|
62,594
|
62,656
|
43 |
ACCOUNTING ESTIMATES AND JUDGEMENTS
|
43 |
ACCOUNTING ESTIMATES AND JUDGEMENTS (Continued)
|
44 |
EVENTS AFTER THE BALANCE SHEET DATE
|
45 |
PARENT AND ULTIMATE HOLDING COMPANY
|
46 |
BALANCE SHEET AND RESERVE MOVEMENT OF THE COMPANY
|
BALANCE SHEET OF THE COMPANY (Amounts in million)
|
Note
|
31 December 2019 RMB
|
31 December 2018 RMB
|
||||||
Non-current assets
|
|||||||||
Property, plant and equipment, net
|
291,544
|
302,048
|
|||||||
Construction in progress
|
60,493
|
51,598
|
|||||||
Right-of-use assets
|
120,037
|
—
|
|||||||
Investment in subsidiaries
|
266,359
|
251,970
|
|||||||
Interest in associates
|
22,798
|
21,143
|
|||||||
Interest in joint ventures
|
15,530
|
16,094
|
|||||||
Financial assets at fair value through other comprehensive income
|
395
|
395
|
|||||||
Deferred tax assets
|
7,315
|
11,021
|
|||||||
Lease prepayments
|
—
|
7,101
|
|||||||
Long-term prepayments and other assets
|
6,727
|
13,129
|
|||||||
Total non-current assets
|
791,198
|
674,499
|
|||||||
Current assets
|
|||||||||
Cash and cash equivalents
|
15,984
|
59,120
|
|||||||
Time deposits with financial institutions
|
38,088
|
23,759
|
|||||||
Financial assets at fair value through profit or loss
|
–
|
22,500
|
|||||||
Derivative financial assets
|
940
|
–
|
|||||||
Trade accounts receivable and bills receivable
|
21,544
|
30,145
|
|||||||
Financial assets at fair value through other comprehensive income
|
207
|
–
|
|||||||
Dividends receivable
|
41
|
2,313
|
|||||||
Inventories
|
49,116
|
45,825
|
|||||||
Prepaid expenses and other current assets
|
106,645
|
73,442
|
|||||||
Total current assets
|
232,565
|
257,104
|
|||||||
Current liabilities
|
|||||||||
Short-term debts
|
32,329
|
14,511
|
|||||||
Loans from Sinopec Group Company and fellow subsidiaries
|
39,439
|
5,815
|
|||||||
Lease liabilities
|
7,198
|
—
|
|||||||
Derivative financial liabilities
|
157
|
967
|
|||||||
Trade accounts payable and bills payable
|
80,118
|
84,418
|
|||||||
Contract liabilities
|
5,112
|
4,230
|
|||||||
Other payables
|
162,852
|
178,936
|
|||||||
Total current liabilities
|
327,205
|
288,877
|
|||||||
Net current liabilities
|
94,640
|
31,773
|
|||||||
Total assets less current liabilities
|
696,558
|
642,726
|
|||||||
Non-current liabilities
|
|||||||||
Long-term debts
|
12,999
|
27,200
|
|||||||
Loans from Sinopec Group Company and fellow subsidiaries
|
6,681
|
40,904
|
|||||||
Lease liabilities
|
107,783
|
—
|
|||||||
Provisions
|
34,514
|
33,094
|
|||||||
Other long-term liabilities
|
5,404
|
5,310
|
|||||||
Total non-current liabilities
|
167,381
|
106,508
|
|||||||
529,177
|
536,218
|
||||||||
Equity
|
|||||||||
Reserves
|
(a)
|
408,106
|
415,147
|
||||||
Total equity
|
529,177
|
536,218
|
46 |
BALANCE SHEET AND RESERVE MOVEMENT OF THE COMPANY (Continued)
|
(a) |
RESERVES MOVEMENT OF THE COMPANY
|
The Company
|
||||||||
2019 RMB million
|
2018 RMB million
|
|||||||
Capital reserve
|
||||||||
Balance at 1 January
|
9,201
|
9,195
|
||||||
Others
|
46
|
6
|
||||||
Balance at 31 December
|
9,247
|
9,201
|
||||||
Share premium
|
||||||||
Balance at 1 January
|
55,850
|
55,850
|
||||||
Balance at 31 December
|
55,850
|
55,850
|
||||||
Statutory surplus reserve
|
||||||||
Balance at 1 January
|
86,678
|
82,682
|
||||||
Appropriation
|
3,745
|
3,996
|
||||||
Balance at 31 December
|
90,423
|
86,678
|
||||||
Discretionary surplus reserve
|
||||||||
Balance at 1 January
|
117,000
|
117,000
|
||||||
Balance at 31 December
|
117,000
|
117,000
|
||||||
Other reserves
|
||||||||
Balance at 1 January
|
2,286
|
2,460
|
||||||
Share of other comprehensive income/(loss) of associates and joint ventures, net of deferred tax
|
201
|
(64
|
)
|
|||||
Cash flow hedges, net of deferred tax
|
1,465
|
(617
|
)
|
|||||
Special reserve
|
(40
|
)
|
507
|
|||||
Balance at 31 December
|
3,912
|
2,286
|
||||||
Retained earnings
|
||||||||
Balance at 1 January
|
144,132
|
177,989
|
||||||
Profit for the year
|
37,256
|
38,460
|
||||||
Distribution to owners (Note 13)
|
(46,008
|
)
|
(67,799
|
)
|
||||
Appropriation
|
(3,745
|
)
|
(3,996
|
)
|
||||
Special reserve
|
40
|
(507
|
)
|
|||||
Others
|
(1
|
)
|
(15
|
)
|
||||
Balance at 31 December
|
131,674
|
144,132
|
||||||
408,106
|
415,147
|
(C) |
DIFFERENCES BETWEEN CONSOLIDATED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH THE ACCOUNTING POLICIES COMPLYING WITH CASS AND IFRS (UNAUDITED)
|
(I) |
GOVERNMENT GRANTS
|
(II) |
SAFETY PRODUCTION FUND
|
Note
|
31 December
2019
RMB million
|
31 December
2018
RMB million
|
|||||||
Shareholders' equity under CASs
|
876,905
|
857,659
|
|||||||
Adjustments:
|
|||||||||
Government grants
|
(i)
|
(1,070
|
)
|
(1,124
|
)
|
||||
Total equity under IFRS*
|
875,835
|
856,535
|
Note
|
2019
RMB million
|
2018
RMB million
|
|||||||
Net profit under CASs
|
72,122
|
80,289
|
|||||||
Adjustments:
|
|||||||||
Government grants
|
(i)
|
54
|
56
|
||||||
Safety production fund
|
(ii)
|
69
|
909
|
||||||
Others
|
(212
|
)
|
(2,357
|
)
|
|||||
Profit for the year under IFRS*
|
72,033
|
78,897
|
* |
The figures are extracted from the consolidated financial statements prepared in accordance with the accounting policies complying with IFRS during the year ended 31
December 2018 and 2019 which have been audited by PricewaterhouseCoopers.
|
(D) |
SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED)
|
Total
|
China
|
2019 RMB million Other countries
|
Total
|
China
|
2018 RMB million Other countries
|
|||||||||||||||||||
The Group
|
||||||||||||||||||||||||
Property cost, wells and related equipments and facilities
|
727,552
|
684,246
|
43,306
|
695,724
|
651,531
|
44,193
|
||||||||||||||||||
Supporting equipments and facilities
|
202,208
|
202,192
|
16
|
199,321
|
199,304
|
17
|
||||||||||||||||||
Uncompleted wells, equipments and facilities
|
46,712
|
46,526
|
186
|
40,778
|
40,770
|
8
|
||||||||||||||||||
Total capitalised costs
|
976,472
|
932,964
|
43,508
|
935,823
|
891,605
|
44,218
|
||||||||||||||||||
Accumulated depreciation, depletion, amortisation and impairment losses
|
(702,392
|
)
|
(661,177
|
)
|
(41,215
|
)
|
(658,093
|
)
|
(618,593
|
)
|
(39,500
|
)
|
||||||||||||
Net capitalised costs
|
274,080
|
271,787
|
2,293
|
277,730
|
273,012
|
4,718
|
||||||||||||||||||
Equity method investments
|
||||||||||||||||||||||||
Share of net capitalised costs of associates and joint ventures
|
5,743
|
–
|
5,743
|
6,304
|
–
|
6,304
|
||||||||||||||||||
Total of the Group's and its equity method investments' net capitalised costs
|
279,823
|
271,787
|
8,036
|
284,034
|
273,012
|
11,022
|
2019
RMB million
|
2018
RMB million
|
|||||||||||||||||||||||
Total
|
China
|
Other countries
|
Total
|
China
|
Other countries
|
|||||||||||||||||||
The Group
|
||||||||||||||||||||||||
Exploration
|
16,295
|
16,295
|
–
|
12,108
|
12,108
|
–
|
||||||||||||||||||
Development
|
37,412
|
37,245
|
167
|
27,453
|
27,329
|
124
|
||||||||||||||||||
Total costs incurred
|
53,707
|
53,540
|
167
|
39,561
|
39,437
|
124
|
||||||||||||||||||
Equity method investments
|
||||||||||||||||||||||||
Share of costs of exploration and development of associates and joint ventures
|
747
|
–
|
747
|
793
|
–
|
793
|
||||||||||||||||||
Total of the Group's and its equity method investments' exploration and development costs
|
54,454
|
53,540
|
914
|
40,354
|
39,437
|
917
|
(D) |
SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Continued)
|
Total
|
China
|
2019RMB million Other countries
|
Total
|
China
|
2018RMB million Other countries
|
|||||||||||||||||||
The Group
|
||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||
Sales
|
59,552
|
59,262
|
290
|
57,860
|
57,860
|
–
|
||||||||||||||||||
Transfers
|
83,633
|
80,641
|
2,992
|
89,569
|
84,532
|
5,037
|
||||||||||||||||||
143,185
|
139,903
|
3,282
|
147,429
|
142,392
|
5,037
|
|||||||||||||||||||
Production costs excluding taxes
|
(47,969
|
)
|
(46,725
|
)
|
(1,244
|
)
|
(47,227
|
)
|
(45,953
|
)
|
(1,274
|
)
|
||||||||||||
Exploration expenses
|
(10,510
|
)
|
(10,510
|
)
|
–
|
(10,744
|
)
|
(10,744
|
)
|
–
|
||||||||||||||
Depreciation, depletion, amortisation and impairment losses
|
(48,630
|
)
|
(47,580
|
)
|
(1,050
|
)
|
(62,832
|
)
|
(60,877
|
)
|
(1,955
|
)
|
||||||||||||
Taxes other than income tax
|
(9,395
|
)
|
(9,395
|
)
|
–
|
(11,400
|
)
|
(11,400
|
)
|
–
|
||||||||||||||
Profit before taxation
|
26,681
|
25,693
|
988
|
15,226
|
13,418
|
1,808
|
||||||||||||||||||
Income tax expense
|
338
|
–
|
338
|
709
|
–
|
709
|
||||||||||||||||||
Results of operation from producing activities Equity
method investments
|
27,019
|
25,693
|
1,326
|
15,935
|
13,418
|
2,517
|
||||||||||||||||||
Equity method investments
|
||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||
Sales
|
9,325
|
–
|
9,325
|
9,530
|
–
|
9,530
|
||||||||||||||||||
9,325
|
–
|
9,325
|
9,530
|
–
|
9,530
|
|||||||||||||||||||
Production costs excluding taxes
|
(2,516
|
)
|
–
|
(2,516
|
)
|
(2,455
|
)
|
–
|
(2,455
|
)
|
||||||||||||||
Exploration expenses
|
–
|
–
|
–
|
–
|
–
|
–
|
||||||||||||||||||
Depreciation, depletion, amortisation and impairment losses
|
(1,124
|
)
|
–
|
(1,124
|
)
|
(1,163
|
)
|
–
|
(1,163
|
)
|
||||||||||||||
Taxes other than income tax
|
(4,068
|
)
|
–
|
(4,068
|
)
|
(4,075
|
)
|
–
|
(4,075
|
)
|
||||||||||||||
Profit before taxation
|
1,617
|
–
|
1,617
|
1,837
|
–
|
1,837
|
||||||||||||||||||
Income tax expense
|
(486
|
)
|
–
|
(486
|
)
|
(667
|
)
|
–
|
(667
|
)
|
||||||||||||||
Share of profit for producing activities of associates and joint ventures
|
1,131
|
–
|
1,131
|
1,170
|
–
|
1,170
|
||||||||||||||||||
Total of the Group’s and its equity method investments’ results of operations for producing activities
|
28,150
|
25,693
|
2,457
|
17,105
|
13,418
|
3,687
|
(D) |
SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Continued)
|
2019
|
2018
|
|||||||||||||||||||||||
Total
|
China
|
Other countries
|
Total
|
China
|
Other countries
|
|||||||||||||||||||
The Group
|
||||||||||||||||||||||||
Proved developed and undeveloped reserves (oil) (million barrels)
|
||||||||||||||||||||||||
Beginning of year
|
1,367
|
1,339
|
28
|
1,293
|
1,261
|
32
|
||||||||||||||||||
Revisions of previous estimates
|
81
|
85
|
(4
|
)
|
160
|
158
|
2
|
|||||||||||||||||
Improved recovery
|
160
|
160
|
–
|
95
|
90
|
5
|
||||||||||||||||||
Extensions and discoveries
|
98
|
98
|
–
|
79
|
79
|
–
|
||||||||||||||||||
Production
|
(256
|
)
|
(249
|
)
|
(7
|
)
|
(260
|
)
|
(249
|
)
|
(11
|
)
|
||||||||||||
End of year
|
1,450
|
1,433
|
17
|
1,367
|
1,339
|
28
|
||||||||||||||||||
Non-controlling interest in proved developed and undeveloped reserves at the end of year
|
8
|
–
|
8
|
12
|
–
|
12
|
||||||||||||||||||
Proved developed reserves
|
||||||||||||||||||||||||
Beginning of year
|
1,271
|
1,244
|
27
|
1,156
|
1,124
|
32
|
||||||||||||||||||
End of year
|
1,343
|
1,326
|
17
|
1,271
|
1,244
|
27
|
||||||||||||||||||
Proved undeveloped reserves
|
||||||||||||||||||||||||
Beginning of year
|
96
|
95
|
1
|
137
|
137
|
–
|
||||||||||||||||||
End of year
|
107
|
107
|
–
|
96
|
95
|
1
|
||||||||||||||||||
Proved developed and undeveloped reserves (gas) (billion cubic feet)
|
||||||||||||||||||||||||
Beginning of year
|
6,793
|
6,793
|
–
|
6,985
|
6,985
|
–
|
||||||||||||||||||
Revisions of previous estimates
|
123
|
123
|
–
|
(40
|
)
|
(40
|
)
|
–
|
||||||||||||||||
Improved recovery
|
469
|
469
|
–
|
142
|
142
|
–
|
||||||||||||||||||
Extensions and discoveries
|
875
|
875
|
–
|
680
|
680
|
–
|
||||||||||||||||||
Production
|
(1,044
|
)
|
(1,044
|
)
|
–
|
(974
|
)
|
(974
|
)
|
–
|
||||||||||||||
End of year
|
7,216
|
7,216
|
–
|
6,793
|
6,793
|
–
|
||||||||||||||||||
Proved developed reserves
|
||||||||||||||||||||||||
Beginning of year
|
5,822
|
5,822
|
–
|
6,000
|
6,000
|
–
|
||||||||||||||||||
End of year
|
6,026
|
6,026
|
–
|
5,822
|
5,822
|
–
|
||||||||||||||||||
Proved undeveloped reserves
|
||||||||||||||||||||||||
Beginning of year
|
971
|
971
|
–
|
985
|
985
|
–
|
||||||||||||||||||
End of year
|
1,190
|
1,190
|
–
|
971
|
971
|
–
|
(D) |
SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Continued)
|
2019
|
2018
|
|||||||||||||||||||||||
Total
|
China
|
Other countries
|
Total
|
China
|
Other countries
|
|||||||||||||||||||
Equity method investments
|
||||||||||||||||||||||||
Proved developed and undeveloped reserves of associates and joint ventures (oil) (million barrels)
|
||||||||||||||||||||||||
Beginning of year
|
299
|
–
|
299
|
306
|
–
|
306
|
||||||||||||||||||
Revisions of previous estimates
|
(8
|
)
|
–
|
(8
|
)
|
12
|
–
|
12
|
||||||||||||||||
Improved recovery
|
2
|
–
|
2
|
4
|
–
|
4
|
||||||||||||||||||
Extensions and discoveries
|
25
|
–
|
25
|
5
|
–
|
5
|
||||||||||||||||||
Production
|
(28
|
)
|
–
|
(28
|
)
|
(28
|
)
|
–
|
(28
|
)
|
||||||||||||||
End of year
|
290
|
–
|
290
|
299
|
–
|
299
|
||||||||||||||||||
Proved developed reserves
|
||||||||||||||||||||||||
Beginning of year
|
261
|
–
|
261
|
273
|
–
|
273
|
||||||||||||||||||
End of year
|
245
|
–
|
245
|
261
|
–
|
261
|
||||||||||||||||||
Proved undeveloped reserves
|
||||||||||||||||||||||||
Beginning of year
|
38
|
–
|
38
|
33
|
–
|
33
|
||||||||||||||||||
End of year
|
45
|
–
|
45
|
38
|
–
|
38
|
||||||||||||||||||
Proved developed and undeveloped reserves of associates and joint ventures (gas) (billion cubic feet)
|
||||||||||||||||||||||||
Beginning of year
|
13
|
–
|
13
|
12
|
–
|
12
|
||||||||||||||||||
Revisions of previous estimates
|
(1
|
)
|
–
|
(1
|
)
|
2
|
–
|
2
|
||||||||||||||||
Improved recovery
|
–
|
–
|
–
|
2
|
–
|
2
|
||||||||||||||||||
Extensions and discoveries
|
–
|
–
|
–
|
–
|
–
|
–
|
||||||||||||||||||
Production
|
(3
|
)
|
–
|
(3
|
)
|
(3
|
)
|
–
|
(3
|
)
|
||||||||||||||
End of year
|
9
|
–
|
9
|
13
|
–
|
13
|
||||||||||||||||||
Proved developed reserves
|
||||||||||||||||||||||||
Beginning of year
|
13
|
–
|
13
|
12
|
–
|
12
|
||||||||||||||||||
End of year
|
9
|
–
|
9
|
13
|
–
|
13
|
||||||||||||||||||
Proved undeveloped reserves
|
||||||||||||||||||||||||
Beginning of year
|
–
|
–
|
–
|
–
|
–
|
–
|
||||||||||||||||||
End of year
|
–
|
–
|
–
|
–
|
–
|
–
|
||||||||||||||||||
Total of the Group and its equity method investments
|
||||||||||||||||||||||||
Proved developed and undeveloped reserves (oil) (million barrels)
|
||||||||||||||||||||||||
Beginning of year
|
1,666
|
1,339
|
327
|
1,599
|
1,261
|
338
|
||||||||||||||||||
End of year
|
1,740
|
1,433
|
307
|
1,666
|
1,339
|
327
|
||||||||||||||||||
Proved developed and undeveloped reserves
|
||||||||||||||||||||||||
(gas) (billion cubic feet)
|
||||||||||||||||||||||||
Beginning of year
|
6,806
|
6,793
|
13
|
6,997
|
6,985
|
12
|
||||||||||||||||||
End of year
|
7,225
|
7,216
|
9
|
6,806
|
6,793
|
13
|
(D) |
SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Continued)
|
Total
|
China
|
2019
RMB million Other countries
|
Total
|
China
|
2018
RMB million Other countries
|
|||||||||||||||||||
The Group
|
||||||||||||||||||||||||
Future cash flows
|
869,402
|
856,037
|
13,365
|
868,058
|
854,563
|
13,495
|
||||||||||||||||||
Future production costs
|
(384,417
|
)
|
(377,692
|
)
|
(6,725
|
)
|
(381,893
|
)
|
(376,532
|
)
|
(5,361
|
)
|
||||||||||||
Future development costs
|
(27,065
|
)
|
(22,216
|
)
|
(4,849
|
)
|
(22,310
|
)
|
(19,300
|
)
|
(3,010
|
)
|
||||||||||||
Future income tax expenses
|
(40,720
|
)
|
(39,634
|
)
|
(1,086
|
)
|
(42,728
|
)
|
(40,651
|
)
|
(2,077
|
)
|
||||||||||||
Undiscounted future net cash flows
|
417,200
|
416,495
|
705
|
421,127
|
418,080
|
3,047
|
||||||||||||||||||
10% annual discount for estimated timing of cash flows
|
(126,203
|
)
|
(126,175
|
)
|
(28
|
)
|
(126,910
|
)
|
(126,617
|
)
|
(293
|
)
|
||||||||||||
Standardised measure of discounted future net cash flows
|
290,997
|
290,320
|
677
|
294,217
|
291,463
|
2,754
|
||||||||||||||||||
Discounted future net cash flows attributable to non-controlling interests
|
305
|
–
|
305
|
1,239
|
–
|
1,239
|
||||||||||||||||||
Equity method investments
|
||||||||||||||||||||||||
Future cash flows
|
41,796
|
–
|
41,796
|
48,778
|
–
|
48,778
|
||||||||||||||||||
Future production costs
|
(13,141
|
)
|
–
|
(13,141
|
)
|
(12,462
|
)
|
–
|
(12,462
|
)
|
||||||||||||||
Future development costs
|
(5,603
|
)
|
–
|
(5,603
|
)
|
(4,433
|
)
|
–
|
(4,433
|
)
|
||||||||||||||
Future income tax expenses
|
(3,995
|
)
|
–
|
(3,995
|
)
|
(5,632
|
)
|
–
|
(5,632
|
)
|
||||||||||||||
Undiscounted future net cash flows
|
19,057
|
–
|
19,057
|
26,251
|
–
|
26,251
|
||||||||||||||||||
10% annual discount for estimated timing of cash flows
|
(8,852
|
)
|
–
|
(8,852
|
)
|
(13,012
|
)
|
–
|
(13,012
|
)
|
||||||||||||||
Standardised measure of discounted future net cash flows
|
10,205
|
–
|
10,205
|
13,239
|
–
|
13,239
|
||||||||||||||||||
Total of the Group's and its equity method investments' results of standardised measure of discounted future net
cash flows
|
301,202
|
290,320
|
10,882
|
307,456
|
291,463
|
15,993
|
(D) |
SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED) (Continued)
|
Table VI: Changes in the standardised measure of discounted cash flows
|
||||||||
2019
RMB million
|
2018
RMB million
|
|||||||
The Group
|
||||||||
Sales and transfers of oil and gas produced, net of production costs
|
(85,821
|
)
|
(88,802
|
)
|
||||
Net changes in prices and production costs
|
(25,442
|
)
|
98,952
|
|||||
Net changes in estimated future development cost
|
(10,108
|
)
|
(5,468
|
)
|
||||
Net changes due to extensions, discoveries and improved recoveries
|
61,465
|
41,385
|
||||||
Revisions of previous quantity estimates
|
12,995
|
22,040
|
||||||
Previously estimated development costs incurred during the year
|
9,737
|
9,507
|
||||||
Accretion of discount
|
32,407
|
22,405
|
||||||
Net changes in income taxes
|
1,547
|
(28,894
|
)
|
|||||
Net changes for the year
|
(3,220
|
)
|
71,125
|
|||||
Equity method investments
|
||||||||
Sales and transfers of oil and gas produced, net of production costs
|
(2,741
|
)
|
(3,001
|
)
|
||||
Net changes in prices and production costs
|
(2,804
|
)
|
1,620
|
|||||
Net changes in estimated future development cost
|
(881
|
)
|
(196
|
)
|
||||
Net changes due to extensions, discoveries and improved recoveries
|
1,321
|
341
|
||||||
Revisions of previous quantity estimates
|
(423
|
)
|
818
|
|||||
Previously estimated development costs incurred during the year
|
355
|
272
|
||||||
Accretion of discount
|
1,438
|
1,196
|
||||||
Net changes in income taxes
|
701
|
(366
|
)
|
|||||
Net changes for the year
|
(3,034
|
)
|
684
|
|||||
Total of the Group's and its equity method investments' results of net changes for the year
|
(6,254
|
)
|
71,809
|
Postcode
|
: 100728
|
|
Tel.
|
: 86-10-59960028
|
|
Fax
|
: 86-10-59960386
|
|
Website
|
: http://www.sinopec.com/listco/
|
|
E-mail addresses
|
: ir@sinopec.com
|
Stock name
|
: SINOPEC CORP
|
|
Stock code
|
: 600028
|
Stock code
|
: 00386
|
Stock code
|
: SNP
|
Stock code
|
: SNP
|
Domestic Auditors
|
: PricewaterhouseCoopers
|
|
Zhong Tian LLP Address
|
: 11th Floor
PricewaterhouseCoopers, 2 Corporate Avenue, 202 Hu Bin Road, Huangpu District, Shanghai, PRC 200021 |
|
Overseas Auditors
|
: PricewaterhouseCoopers
|
|
Address
|
: 22nd Floor, Prince's Building, Central, Hong Kong
|
|
a) |
The original copies of the 2019 annual report signed by Mr. Zhang Yuzhuo, the Chairman;
|
b) |
The original copies of financial statements and consolidated financial statements as of 31 December 2019 prepared under IFRS and CASs, signed by Mr. Zhang Yuzhuo, the
Chairman, Mr. Ma Yongsheng, the President, Ms. Shou Donghua, the Chief Financial Officer and head of the financial department of Sinopec Corp.;
|
c) |
The original auditors' reports signed by the auditors; and
|
d) |
Copies of the documents and announcements that Sinopec Corp. has published in the newspapers designated by the CSRC during the reporting period.
|
THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION
|
CONTENTS
|
Definitions
|
1
|
||
Letter from the Board
|
2
|
||
I.
|
Introduction
|
2
|
|
II.
|
Election of Director
|
3
|
|
III.
|
Recommendation of the Board
|
4
|
|
IV.
|
Annual General Meeting
|
4
|
|
Notice of the Annual General Meeting for the year 2019
|
5
|
DEFINITIONS
|
“Articles of Association” |
the articles of association of Sinopec Corp. as amended, revised or supplemented from time to time;
|
“A Share(s)” |
domestic shares with nominal value of RMB1.00 each in the share capital of Sinopec Corp. which are listed on the Shanghai Stock Exchange;
|
“A Shareholder(s)” |
holders of A Share(s);
|
“Annual General Meeting” / “AGM” |
the annual general meeting of Sinopec Corp. for 2019 to be held at Beijing Shengli Hotel, No. 3 Beishatan, Deshengmen Wai, Chaoyang District, Beijing, PRC on Tuesday, 19 May 2020 at 9:00 a.m.;
|
“Board” |
the board of directors of Sinopec Corp.;
|
“Company” / “Sinopec Corp.” |
China Petroleum & Chemical Corporation, a joint stock limited company incorporated in the PRC with limited liability;
|
“Director(s)” |
the director(s) of Sinopec Corp.;
|
“Executive Director” |
the executive director of Sinopec Corp.;
|
“H Share(s)” |
overseas listed foreign shares with nominal value of RMB1.00 each in the share capital of Sinopec Corp. which are listed on the Stock Exchange and traded in Hong Kong dollars;
|
“H Shareholder(s)” |
holders of H Share(s);
|
“Hong Kong” |
the Hong Kong Special Administrative Region of the PRC;
|
“Hong Kong Listing Rules” |
The Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited;
|
“PRC” or “China” |
the People’s Republic of China;
|
“PRC Company Law” |
Company Law of the People’s Republic of China
|
“Proposed Appointment” |
the Board has proposed to appoint Mr. Liu Hongbin as an executive director of the seventh session of the Board of Sinopec Corp.;
|
“RMB” |
Renminbi, the lawful currency of PRC;
|
“Share(s)” |
ordinary shares in the share capital of Sinopec Corp. with a nominal value of RMB1.00 each, comprising the A Shares and the H Shares;
|
“Shareholder(s)” |
holder(s) of the Company’s Share(s);
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“Stock Exchange” |
The Stock Exchange of Hong Kong Limited;
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LETTER FROM THE BOARD
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Executive Directors:
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Registered Office:
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Ma Yongsheng
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22 Chaoyangmen North Street
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Ling Yiqun
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Chaoyang District
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Beijing 100728
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Non-Executive Directors:
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PRC
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Zhang Yuzhuo
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Yu Baocai
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Li Yong
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Independent Non-Executive Directors:
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Tang Min
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Fan Gang
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Cai Hongbin
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Ng, Kar Ling Johnny
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29 March 2020
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I. |
INTRODUCTION
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LETTER FROM THE BOARD
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II. |
ELECTION OF DIRECTOR
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LETTER FROM THE BOARD
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III. |
RECOMMENDATION OF THE BOARD
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IV. |
ANNUAL GENERAL MEETING
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By Order of the Board
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China Petroleum & Chemical Corporation
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Huang Wensheng
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Vice President and Secretary to the Board
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NOTICE OF ANNUAL GENERAL MEETING FOR THE YEAR 2019
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1. |
To consider and approve the Report of the Board of Directors of Sinopec Corp. (the “Board”) for 2019.
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2. |
To consider and approve the Report of the Board of Supervisors of Sinopec Corp. for 2019.
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3. |
To consider and approve the audited financial reports of Sinopec Corp. for the year ended 31 December 2019 prepared by PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers.
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4. |
To consider and approve the profit distribution plan of Sinopec Corp. for the year ended 31 December 2019.
It is proposed to the shareholders at the Annual General Meeting to consider and approve the distribution of a final dividend of RMB0.19 (tax inclusive) per share held by the shareholders on the
relevant record date (9 June 2020), combining with the interim dividend of RMB0.12 (tax inclusive) per share which has been declared and distributed by the Company, the annual cash dividend will be RMB0.31 (tax inclusive) per
share for the year 2019.
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5. |
To authorise the Board to determine the interim profit distribution plan of Sinopec Corp. for the year 2020.
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6. |
To consider and approve the re-appointment of PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers as the external auditors of Sinopec Corp. for the year 2020, and to authorise the Board to
determine their remunerations.
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NOTICE OF ANNUAL GENERAL MEETING FOR THE YEAR 2019
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7. |
To authorise the Board to determine the proposed plan for issuance of debt financing instrument(s):
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8. |
To grant to the Board a general mandate to issue new domestic shares and/or overseas-listed foreign shares of Sinopec Corp.:
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(1) |
To authorise the Board (or the directors authorised by the Board) to allot, issue and deal with shares or securities convertible into such shares, options, warrants or similar rights to subscribe for any
A Shares or H Shares of Sinopec Corp. (“Similar Rights”) not exceeding
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NOTICE OF ANNUAL GENERAL MEETING FOR THE YEAR 2019
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20% of the existing A Share and H Shares in issue at the time when this resolution is passed at the Annual General Meeting. However, notwithstanding the obtaining of the general mandate by the Board,
any issue of A Shares needs shareholders’ approval at a general meeting in accordance with the relevant laws and regulations of the People’s Republic of China (“PRC”).
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(2) |
Subject to paragraphs (4) and (5) and pursuant to the PRC Company Law and the listing rules of the relevant stock exchanges (as amended from time to time), the exercise by the Board (or the directors
authorised by the Board) of all the powers of Sinopec Corp. granted by the general and unconditional mandate to allot, issue and deal with A Shares and/or H Shares or Similar Rights and to determine the terms and conditions for the
allotment and issuance of new shares or Similar Rights including but not limited to the following terms:
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(a) |
class and number of new shares to be issued;
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(b) |
price determination method of new shares and/or issue price (including price range); (c) the starting and closing dates for the issue;
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(d) |
class and number of the new shares to be issued to existing shareholders; and/or
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(e) |
the making or granting of offers, agreements, options, convertible rights or other relevant rights which might require the exercise of such powers.
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(3) |
The approval in paragraph (2) will authorise the Board (or the directors authorised by the Board) to make or grant offers, agreements and options during the Relevant Period that need or might need to be
continued or implemented after the Relevant Period.
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(4) |
The aggregate nominal amount of new A Shares and H Shares allotted, issued and dealt with or agreed conditionally or unconditionally to be allotted, issued and dealt with (whether pursuant to an option or
otherwise) by the Board (or the directors authorised by the Board) during the Relevant Period pursuant to the approval in paragraph (2), other than issue of shares by conversion of the surplus reserve into share capital in
accordance with the PRC Company Law and the Articles of Association, shall not exceed 20% of each class of the existing A Shares and H Shares in issue at the time when this resolution is passed at the Annual General Meeting.
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(5) |
In exercising the powers granted in paragraph (2), the Board (or the directors authorised by the Board) must (i) comply with the PRC Company Law and the relevant regulations stipulated (as amended from
time to time) by the places where Sinopec Corp. is listed; and (ii) obtain approval from China Securities Regulatory Commission and other relevant PRC government departments.
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(6) |
For the purpose of this resolution, the relevant period shall commence from the date of passing this special resolution at the AGM and will expire on the earliest among (“Relevant Period”):
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(a) |
twelve months from the date of passing this resolution at the AGM;
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NOTICE OF ANNUAL GENERAL MEETING FOR THE YEAR 2019
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(b) |
the conclusion of the next annual general meeting of Sinopec Corp.; and
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(c) |
the revocation or variation of the General Mandate granted under this resolution by special resolution of the shareholders in a general meeting.
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(7) |
The Board (or the directors authorised by the Board), subject to the approval of the relevant authorities of the PRC and in accordance with the relevant laws, regulations and rules stipulated by the
places where Sinopec Corp. is listed and the PRC Company Law, be and is hereby authorised to increase the registered capital of Sinopec Corp. to the required amount upon the exercise of the powers pursuant to paragraph (2) above.
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(8) |
To authorise the Board (or the directors authorised by the Board) to sign the necessary documents, complete the necessary formalities and take other necessary steps to complete the allotment and issue and
listing of new shares, provided the same do not violate the relevant laws, administrative regulations, listing rules of the relevant stock exchanges and the Articles of Association.
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(9) |
Subject to the approval of the relevant PRC authorities, the Board (or the directors authorised by the Board) is hereby authorised to make appropriate and necessary amendments to the Articles of
Association after completion of the allotment and issuance of new shares according to the method, type and number of the allotment and issue of new shares by Sinopec Corp. and the actual situation of the shareholding structure of
Sinopec Corp. at the time of completion of the allotment and issue of new shares in order to reflect the alteration of the share capital structure and registered capital of Sinopec Corp. pursuant to the exercise of this General
Mandate.
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9. |
To elect Mr. Liu Hongbin as an executive director of the seventh session of the board of directors of the Company.
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By Order of the Board
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China Petroleum & Chemical Corporation
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Huang Wensheng
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Vice President and Secretary to the Board of Directors
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NOTICE OF ANNUAL GENERAL MEETING FOR THE YEAR 2019
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I. |
Attendees of Annual General Meeting
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1. |
Eligibility for attending the Annual General Meeting
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2. |
Proxy
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(1) |
A member eligible to attend and vote at Annual General Meeting is entitled to appoint, in written form, one or more proxies to attend and vote on its behalf. A proxy need not be a shareholder of Sinopec
Corp.
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(2) |
A proxy should be appointed by a written instrument signed by the appointer or its attorney duly authorised in writing. If the form of proxy is signed by the attorney of the appointer, the power of
attorney authorising that attorney to sign or other authorisation document(s) must be notarised.
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(3) |
To be valid, the power of attorney or other authorisation document(s) which have been notarised together with the completed form of proxy must be delivered to the statutory address of Sinopec Corp. not
less than 24 hours before the designated time for holding the Annual General Meeting (i.e. before 9:00 a.m. 18 May 2020 Hong Kong time). Holders of A Shares shall deliver the relevant document(s) to Board Secretariat of Sinopec
Corp. (the address is 22 Chaoyangmen North Street, Chaoyang District, Beijing 100728, PRC). Holder(s) of H Shares shall deliver the relevant document(s) to the Hong Kong Registrars Limited (the address is 17M Floor, Hopewell Centre,
183 Queen’s Road East, Wanchai, Hong Kong).
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(4) |
Shareholders or their proxies may exercise the right to vote by poll.
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3. |
The directors, supervisors and senior management of Sinopec Corp.
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4. |
Legal advisors of Sinopec Corp.
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5. |
Others.
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NOTICE OF ANNUAL GENERAL MEETING FOR THE YEAR 2019
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II. |
Registration procedures for attending the Annual General Meeting
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1. |
A shareholder or his proxy shall produce proof of identity when attending the meeting. If a shareholder is a legal person, its legal representative or other persons authorised by the board of directors or
other governing body of such shareholder may attend the Annual General Meeting by producing a copy of the resolution of the board of directors or other governing body of such shareholder appointing such persons to attend the
meeting.
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2. |
Holders of H Shares and A Shares intending to attend the Annual General Meeting should return the reply slip for attending the Annual General Meeting to Board Secretariat of Sinopec Corp. during hours
between 9:00 a.m. and 11:30 a.m., 2:00 p.m. and 4:30 p.m. on every business day on or before Wednesday, 29 April 2020 in person, by post or by fax.
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3. |
Closure of Register of Members. The H Share register of members of Sinopec Corp. will be closed from Saturday, 18 April 2020 to Tuesday, 19 May 2020 (both days inclusive).
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III. |
Miscellaneous
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1. |
The Annual General Meeting will not last for more than one working day. Shareholders who attend shall bear their own travelling and accommodation expenses.
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2. |
The address of the Share Registrar for A Shares of Sinopec Corp., China Securities Registration and Clearing Company Limited Shanghai Branch Company is: 166 Lujiazuidong Road, Pudong District, Shanghai.
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3. |
The address of the Share Registrar of H Shares of Sinopec Corp., Hong Kong Registrars Limited is: Shops 1712-1716, 17/F, Hopewell Centre, 183 Queen’s Road East, Wan Chai, Hong Kong.
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4. |
The contacts for the AGM is:
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Number of shares related to this proxy form (Note 2)
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I (We)(note 1)
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of
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being
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the holder(s) of
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H Share(s)(note 2) of RMB1.00 each of China
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Petroleum & Chemical Corporation (“Sinopec Corp.” or the “Company”) now appoint
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of
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(I.D. No.:
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Tel. No.:
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)/ the chairman of the
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2019 AGM
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|||
No.
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By way of non-cumulative voting
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For (note 4)
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Against (note 4)
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1.
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To consider and approve the Report of the Board of Directors of Sinopec Corp. (the “Board”)
for 2019.
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||
2.
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To consider and approve the Report of the Board of Supervisors of Sinopec Corp. for 2019.
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||
3.
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To consider and approve the audited financial reports of Sinopec Corp. for the year ended 31 December 2019 prepared by PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers.
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||
4.
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To consider and approve the profit distribution plan of Sinopec Corp. for the year ended 31 December 2019.
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||
5.
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To authorise the Board to determine the interim profit distribution plan of Sinopec Corp. for the year 2020.
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6.
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To consider and approve the re-appointment of PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers as the external auditors of Sinopec Corp. for the year 2020, and to authorise the Board to
determine their remunerations.
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||
7.
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To authorise the Board to determine the proposed plan for issuance of debt financing instrument(s).
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||
8.
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To grant to the Board a general mandate to issue new domestic shares and/or overseas-listed foreign shares of Sinopec Corp.
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||
9.
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To elect Mr. Liu Hongbin as an executive director of the seventh session of the board of directors of the Company.
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Date:
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2020
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Signature(s):
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(note 5)
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1. |
Please insert full name(s) and address(es) in BLOCK LETTERS.
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2. |
Please insert the number of share(s) registered in your name(s) relating to this form of proxy. If no number is inserted, this form of proxy will be deemed to relate to all of the shares in the capital of
Sinopec Corp. registered in your name(s).
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3. |
Please insert the name and address of your proxy. If this is left blank, the chairman of the AGM will act as your proxy. One or more proxies, who may not be member(s) of Sinopec Corp., may be appointed to
attend and vote in the AGM provided that such proxies must attend the AGM in person on your behalf. Any alteration made to this proxy form must be signed by the signatory.
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4. |
Attention: If you wish to vote FOR any resolution, please indicate with a “v” in the appropriate space under “For”. If you wish to vote AGAINST any resolution, please indicate with a “v” in the
appropriate space under “Against”. In the absence of any such indication, the proxy may vote or abstain at his discretion. Pursuant to the articles of association of Sinopec Corp., the shares withheld or abstained from voting will
not be counted in the calculation of the vote with voting right.
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5. |
This form of proxy must be signed under hand by you or your attorney duly authorised in writing on your behalf. If the appointor is a legal person, this form must be signed under its common seal or under
hand by any directors or agents duly appointed by such corporation.
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6. |
Resolutions 7 and 8 are special resolutions, the others are ordinary resolutions.
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7. |
In the case of joint holders of shares, any one of such persons may vote at the meeting, either personally or by proxy, in respect of such share as if he were solely entitled thereto; but if more than one
of such joint holders are present at the meeting in person or by proxy, the vote of the person whose name stands first on the register of members of Sinopec Corp. in respect of such share shall be accepted.
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8. |
This form of proxy together with the power of attorney or other authorisation document(s) which have been notarised must be delivered by the holder of H Shares to Hong Kong Registrars Limited at 17M
Floor, Hopewell Centre, 183 Queen’s Road East, Hong Kong at least 24 hours before the time designated for the holding of the AGM (ie. before 9:00 a.m., 18 May 2020 Hong Kong time). If the original copy of this proxy form is not
received by such time, the shareholder can be deemed as having not attended the AGM and the relevant proxy form can be deemed as void.
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I(We)(note 1)
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Shareholder Signature (seal)
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ID No. (Business License No.)
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Number of shares held
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Address
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Tel. No.
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Date (year/month/day)
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Proposed questions list
(a separate sheet can be appended)
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1. |
Please insert full name(s) (in Chinese or in English) in BLOCK LETTERS (must match the name in the share register of Sinopec Corp.).
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2. |
The completed and signed reply slip should be delivered to Board Secretariat of Sinopec Corp. in person, by post or by fax during hours between 9:00 a.m. and 11:30 a.m., and 2:00 p.m. and 4:30 p.m. on
every business day on or before Wednesday, 29 April 2020. Failure to sign and return this reply slip, however, will not preclude an eligible shareholder from attending the AGM.
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By Order of the Board
|
|
China Petroleum & Chemical Corporation
|
|
Huang Wensheng
|
|
Vice President and Secretary to the Board of Directors
|
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