(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
(If "Yes" is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b): 82-__________. )
An announcement regarding first quarterly report for 2023 of China Petroleum & Chemical Corporation (the “Registrant”), made by the Registrant on April 27, 2023.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibilities
for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this
announcement.
(a joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 00386)
Overseas Regulatory Announcement
China Petroleum & Chemical Corporation
The First Quarterly Report for 2023
This announcement is made pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).
Beijing, the PRC,
27 April 2023
As of the date of this announcement, directors of the Company are: Ma Yongsheng*, Zhao Dong*, Yu Baocai#, Li Yonglin#, Liu Hongbin#, Cai Hongbin+, Ng, Kar Ling Johnny+, Shi Dan+ and Bi Mingjian+.
China Petroleum & Chemical Corporation The First Quarterly Report for 2023
27 April 2023 Beijing, China
Important notice
RMB million
RMB million
Note: In accordance with the requirements of both the
Interpretation of Accounting Standards for Business Enterprises No. 16 and the Accounting Standard for Business Enterprises No. 18—Income Taxes, the Company retrospectively adjusted the relevant items of the
financial statements.
RMB million
RMB million
RMB: million
Note: In accordance with the requirements of the International
Accounting Standards 12, the Company retrospectively adjusted the relevant items of the financial statements.
Total number of shareholders and top ten shareholders at the end of the reporting period
Note: Sinopec Century Bright Capital Investment Limited, overseas wholly-owned subsidiary of China Petrochemical Corporation, holds 767,916,000 H
shares, accounting for 0.64% of the total issued share capital of Sinopec Corp. Those shareholdings were included in the total number of the shares held by HKSCC (Nominees) Limited.
Statement on the connected relationship or acting in concert among the aforementioned
shareholders: Sinopec Corp. is not aware of any connected relationship or acting in concert among or between the above-mentioned top ten shareholders.
In the first quarter of 2023, China’s economy improved with gross domestic product (GDP) up by 4.5% year on year. The international crude oil prices
fluctuated in a wide range and the spot price of Platt’s Brent for the first quarter averaged USD81.27 per barrel, down by 19.7% year on year. The domestic demand for refined oil products rebounded rapidly, demand for natural gas maintained growth
year on year, and demand for chemical products recovered.
The Company seized the favorable market opportunity, optimized the whole business chain, strengthened the coordination of production and marketing,
made great efforts to expand sales, and achieved good performance. In accordance with CASs, net profit attributable to equity shareholders of the Company was RMB 20.102 billion in the first quarter of 2023. In accordance with IFRS, net profit
attributable to shareholders of the Company was RMB 20.740 billion in the first quarter of 2023.
Exploration and Production: The Company intensified efforts in high quality
exploration, expanded the scale of profitable production capacity, and made positive progress in maintaining oil production, increasing gas output and reducing cost. In exploration, we focused on expanding resources, increasing reserve and
obtaining more exploration licenses, strengthened risk exploration in new regions and areas, and made important breakthroughs of oil and gas exploration in Shunbei, Chuanbei, and Jiyang depression. In development, we accelerated the capacity
building of Shunbei and Tahe oilfields, strengthened fine-tuned development of mature oil fields, and sped up capacity building of natural gas in Western Sichuan and Southeast Sichuan. We also optimized the resources structure of LNG to reduce
procurement costs, strengthened operation optimization of natural gas business, achieving a constant improvement in the profitability of whole natural gas business chain. In the first quarter, the Company’s oil and gas production reached 124.6
million barrels of oil equivalent, up by 2.6% year on year, with natural gas production reaching 330.47 billion cubic feet, up by 5.3% year on year. The exploration and production segment realised an earnings before interest and tax (EBIT) of RMB
13.357 billion.
Conversion:
For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil, 1 tonne = 7.25 barrels. For production of natural
gas, 1 cubic meter = 35.31 cubic feet.
Refining: The Company actively addressed the market changes, vigorously
optimized production operation to maximize the overall profits along the business chain. Closely following market changes,
we maintained high utilisation rate. We flexibly adjusted the procurement strategies to reduce procurement costs. We optimized the product mix and
increased the exports of refined oil products. We also accelerated the construction of world-class refining bases and advanced with structural adjustment projects in an orderly manner. In the first quarter, the Company processed 62.24 million
tonnes of crude oil, yielding 37.30 million tonnes of refined oil products. The refining segment realised EBIT of RMB 10.459 billion.
Note: Including 100% production of domestic joint ventures.
Marketing and Distribution: The Company seized the
favorable opportunity arising from the rapid recovery of demand, fully leveraged the advantages of integrated business and marketing network, strengthened resources coordination, made every effort to expand sales volume, and achieved significant
improvement of the sales volume and profits. We optimised the sales network of refined oil products, made continuous efforts for the transition to an integrated energy service provider of Petro-Gas-Hydrogen-Power-Services. We continued to improve the quality and profitability for the non-fuel business. In the first quarter, total sales volume of refined oil products was 56.16 million tonnes, up by
10.1% year on year. The marketing and distribution segment realised EBIT of RMB
8.475 billion.
Note: The total sales volume of refined oil products includes the amount of trading volume.
Chemicals: Facing severe challenges resulting from the
concentrated release of chemical capacity and fierce competition, the Company closely followed the market demand, optimised the structure of feedstock, facilities and products with a profit-driven orientation, maintained high
utilisation rate in profitable facilities, increased production of high value-added products such as PV- grade EVA and polybutadiene rubber, and
reduced products with no marginal contribution. We actively promoted the construction of advanced capacity. In the first quarter, the ethylene production was 3.347 million tonnes, and the total chemicals sales volume was 20.69 million tonnes, up by
0.2% year on year. The chemicals segment realised EBIT of RMB -3.022 billion.
Note: Including 100% production of domestic joint ventures.
Capital expenditure: In the first quarter, focusing on
quality and return of investment, the Company continuously optimised its investment projects, with total capital expenditures of RMB 23.40 billion. The capital expenditures of the exploration and production segment were RMB 14.98 billion, mainly
used for the crude oil and gas production capacity construction in Shunbei, Tahe, Western Sichuan and Southeast Sichuan, and construction of the Shengli Shale Oil National Demonstration Zone and storage and transportation facilities of Shandong
LNG. The capital expenditures of the refining segment were RMB 4.22 billion, mainly used for the expansion of Zhenhai refinery and structural adjustment of Anqing and Yangzi refineries. The capital expenditures of the marketing and distribution
segment were RMB 0.78 billion, mainly used for renovation of the existing stations. The capital expenditures of the chemicals segment were RMB 3.27 billion, mainly used for ethylene projects in Tianjin Nangang and Hainan, Yizheng PTA project,
caprolactam relocation project in Baling, and new material projects in Zhenhai and Tianjin, etc. The capital expenditures of the corporate and others were RMB 0.15 billion, mainly used for information technology projects.
This report is published in both Chinese and English languages. In the event of any inconsistency between the two versions, the Chinese version shall prevail.
Consolidated Balance Sheet
As at 31 March 2023
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Consolidated Balance Sheet (Continued)
Balance Sheet
As at 31 March 2023
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Balance Sheet (Continued)
Consolidated Income Statement
For the three-month period ended 31 March 2023
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Consolidated Income Statement (Continued)
Income Statement
For the three-month period ended 31 March 2023
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Consolidated Cash Flow Statement
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Consolidated Cash Flow Statement (Continued)
Cash Flow Statement
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Cash Flow Statement (Continued)
Segment Reporting
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Segment Reporting (Continued)
Consolidated Income Statement
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Consolidated Statement of Comprehensive Income
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Consolidated Statement of Financial Position
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Consolidated Statement of Financial Position (Continued)
Consolidated Statement of Cash Flows
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Note to Consolidated Statement of Cash Flows
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
(a) Reconciliation from profit before taxation to net cash used in operating activities
Segment Reporting
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Segment Reporting (Continued)
Other than the differences in the classifications of certain financial statements captions and the accounting for the items described below, there
are no material differences between the Group’s consolidated financial statements prepared in accordance with the accounting policies complying with CASs and IFRS. The reconciliation presented below is included as supplemental information, is not
required as part of the basic financial statements and does not include differences related to classification, presentation or disclosures. Such information has not been subject to independent audit or review. The major differences are:
Under CASs, grants from the government are credited to capital reserve if required by relevant governmental regulations. Under IFRS, government
grants relating to the purchase of fixed assets are recognised as deferred income and are transferred to the income statement over the useful life of these assets.
Under CASs, safety production fund should be recognised in profit or loss with a corresponding increase in reserve according to PRC regulations.
Such reserve is reduced for expenses incurred for safety production purposes or, when safety production related fixed assets are purchased, is reduced by the purchased cost with a corresponding increase in the accumulated depreciation. Such fixed
assets are not depreciated thereafter. Under IFRS, payments are expensed as incurred, or capitalised as fixed assets and depreciated according to applicable depreciation methods.
Effects of major differences between the net profit under CASs and the profit for the period under IFRS are analysed as follows:
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Effects of major differences between the shareholders’ equity under CASs and the total equity under IFRS are analysed as follows:
Units: million Currency: RMB Type: unaudited
In 2023, the Group has adopted the accounting requirements and guidance under CAS newly issued by the Ministry of Finance.
In accordance with CAS Bulletin No.16, the provisions of the Accounting Standards for Business Enterprises No. 18 — Income Taxes on exemption from initial recognition
of deferred tax liabilities and deferred tax assets shall not apply to single transactions that are not business combinations, that do not affect accounting profits or taxable income (or deductible losses) upon transaction’s occurrence, and result
in equal amount of taxable temporary differences and deductible temporary differences caused by initially recognised assets and liabilities. As for the taxable temporary differences and deductible temporary differences arising from the initial
recognition of assets and liabilities in a single transaction, the Group shall, according to the Accounting Standards for Business Enterprises No. 18 — Income Taxes and other relevant provisions, respectively recognise the corresponding deferred
tax liabilities and deferred tax assets upon the occurrence of the transaction.
The Group has made retrospective adjustments in accordance with these requirements for applicable single transactions occurring between 1 January 2022 and the date of
initial implementation. With regard to deductible temporary differences and taxable temporary differences arising from lease liabilities and right-of-use assets recognised as at 1 January 2022 as a result of single transactions to which these
provisions apply, the Group shall, in accordance with CAS Bulletin No.16 and Accounting Standards for Business Enterprises No. 18 — Income Taxes, adjust the cumulative effect amount with the retained earnings at the beginning of the earliest period
presented in the financial statements and other relevant items of the financial statements.
The effects of the above changes in accounting policies on the net profit for the three-month period
ended 31 March 2022 and equity at the beginning and the end of 2022 are summarised as follows:
Units: million Currency: RMB Type: unaudited
Units: million Currency: RMB Type: unaudited
The effects of the above changes in accounting policies on each item of the consolidated balance sheet as at 31 December 2022 and the Company's balance
sheet are summarized as follows:
Consolidated Balance Sheet
Units: million Currency: RMB Type: unaudited
Balance Sheet
Units: million Currency: RMB Type: unaudited
The effects of the above changes in accounting policies on each item of the consolidated income statement for the three-month period ended 31 March
2022 and the Company's income statement are summarized as follows:
Consolidated Income Statement
Units: million Currency: RMB Type: unaudited
Income Statement
Units: million Currency: RMB Type: unaudited
The International Accounting Standards Board has amended IAS 12 and the scope of the exemption in paragraphs 15 and 24 of the previous standard is
amended to "accounting treatment of deferred tax related to assets and liabilities arising from a single transaction for which initial recognition exemption does not apply", therefore, the Group needs to recognise deferred tax assets and deferred
tax liabilities for temporary differences arising from these transactions. The amendment is effective for annual reporting periods beginning on or after 1 January 2023, with earlier application permitted. The Group applies the amendments to
transactions occurring on or after the beginning of the earliest comparative period listed, with any cumulative effect recognised as an adjustment to retained earnings and other related financial statement items at that date.
The effects of the above changes in accounting policies on the net profit for the three-month period ended 31 March 2022 and equity at the beginning
and the end of 2022 are summarised as follows:
Units: million Currency: RMB Type: unaudited
The effects of the above changes in accounting policies on each item of the consolidated income statement for the three-month period ended 31 March
2022 are summarized as follows:
Consolidated Income Statement
Units: million Currency: RMB Type: unaudited
The effects of the above changes in accounting policies on each item of the consolidated statement of comprehensive income for the three-month
period ended 31 March 2022 are summarized as follows:
Consolidated Income Statement
Units: million Currency: RMB Type: unaudited
The effects of the above changes in accounting policies on each item of the consolidated balance sheet as at 31 December 2022 are summarized as
follows:
Consolidated Balance Sheet
Units: million Currency: RMB Type: unaudited