REG - China Pet &Chem Corp - 3rd Quarter Results
28/10/2022 10:15
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RNS Number : 4893E China Petroleum & Chemical Corp 28 October 2022
中国石油化工股份有限公司
China Petroleum & Chemical Corporation
The Third Quarterly Report for 2022
28 October 2022
Beijing China
Important notice
l The Board of Directors, the Board of Supervisors of China Petroleum &
Chemical Corporation ("Sinopec Corp." or "the Company") and its directors,
supervisors and senior management warrant the authenticity, accuracy and
completeness of the information contained in this report and there are no
false representations, misleading statements or material omissions and
severally and jointly accept full responsibility.
l The third quarterly report for 2022 was approved at the 13(th) meeting of
the 8(th) Session of the Board of Directors of Sinopec Corp. All directors
attended this meeting.
l Mr. Ma Yongsheng, Chairman, Mr. Yu Baocai, President, Ms. Shou Donghua,
Chief Financial Officer and Head of the Financial Department of Sinopec Corp.
warrant the authenticity, accuracy and completeness of the financial
statements contained in this quarterly report.
l The financial statements in this quarterly report were not audited.
1. Principal financial data
1.1 Principal financial data and indicators
1.1.1 Principal financial data and indicators prepared in accordance with
China Accounting Standards for Business Enterprises (CASs)
RMB million
Items As of 30 As of 31 Change
September 2022 December 2021 (%)
Total assets 2,050,519 1,889,255 8.5
Total equity attributable to equity shareholders of the Company 781,273 775,102 0.8
RMB million
Nine-months period ended 30 September Change
(%)
2022 2021 2021
(adjusted) (before adjustment)
Operating income 2,453,322 2,001,691 2,003,350 22.6
Net profit attributable to equity shareholders of the Company 56,660 60,029 59,892 (5.6)
Net profit attributable to equity shareholders of the Company excluding 55,452 58,720 58,720 (5.6)
extraordinary gains and losses
Net cash flow from operating activities 59,244 116,744 115,723 (49.3)
Basic earnings per share (RMB) 0.468 0.496 0.495 (5.6)
Diluted earnings per share (RMB) 0.468 0.496 0.495 (5.6)
Weighted average return on net assets 7.28 7.89 7.92 (0.61)
(%) percentage points
Note: The Company has completed the purchase of non-equity assets and
liabilities of Sinopec Group Asset Management Co., Ltd. and Sinopec Beijing
Yanshan Petrochemical Co., Ltd. on 1 December 2021. Sinopec Yizheng Chemical
Fibre Company Limited, a subsidiary of Sinopec Corp., has completed the
purchase of non-equity assets and liabilities of Sinopec Group Asset
Management Co., Ltd. on 1 December 2021. The transactions described above have
been accounted as business combination under common control, thus, the Company
retroactively adjusted the relevant financial data.
1.1.2 Extraordinary items
RMB million
Extraordinary items Three-months period ended 30 September 2022 Nine-months period ended 30 September 2022
(income) /expense (income) /expense
Net gain on disposal of non-current assets (114) (249)
Donations 23 124
Government grants (669) (2,009)
Gains on holding and disposal of various investments (69) (194)
Other extraordinary (income) /expenses, net (95) 193
Subtotal (924) (2,135)
Tax effect 198 673
Total (726) (1,462)
Attributable to:
Equity shareholders of the Company (638) (1,208)
Minority interests (88) (254)
1.1.3 Principal financial data and indicators prepared in accordance with
International Financial Reporting Standards (IFRS)
RMB million
Items As of 30 As of 31 Change
September 2022 December 2021 (%)
Total assets 2,050,519 1,889,255 8.5
Total equity attributable to shareholders of the Company 780,394 774,182 0.8
RMB million
Nine-months period ended 30 September Change
(%)
2022 2021 2021
(adjusted) (before adjustment)
Net cash from operating activities 59,244 116,744 115,723 (49.3)
Operating profit 75,886 85,025 84,806 (10.7)
Net profit attributable to shareholders of the Company 57,284 60,892 60,755 (5.9)
Basic earnings per share (RMB) 0.473 0.503 0.502 (5.9)
Diluted earnings per share (RMB) 0.473 0.503 0.502 (5.9)
Return on net assets (%) 7.34 7.88 7.91 (0.54)
percentage points
Note: The Company has completed the purchase of non-equity assets and
liabilities of Sinopec Group Asset Management Co., Ltd. and Sinopec Beijing
Yanshan Petrochemical Co., Ltd. on 1 December 2021. Sinopec Yizheng Chemical
Fibre Company Limited, a subsidiary of Sinopec Corp., has completed the
purchase of non-equity assets and liabilities of Sinopec Group Asset
Management Co., Ltd. on 1 December 2021. The transactions described above have
been accounted as business combination under common control, thus, the Company
retroactively adjusted the relevant financial data.
1.2 Significant changes in major items contained in the consolidated financial
statements prepared in accordance with CASs.
Items of Consolidated Balance Sheet As of 30 September 2022 As of 31 December Increase/ (Decrease) Main reasons for changes
2021
Amount Percentage
RMB million RMB million RMB million (%)
Financial assets held for trading 1,030 - 1,030 - Impact of increase in structured deposits.
Derivative financial assets 43,768 18,371 25,397 138.2 Impact of changes in profit and loss of crude oil and other products hedging
business.
Derivative financial liabilities 16,454 3,223 13,231 410.5
Accounts receivable 65,796 34,861 30,935 88.7 Increase in accounts receivable resulting from increased prices of crude oil
and refined oil products.
Prepayments 12,162 9,267 2,895 31.2 Prepayment for goods increased year-on-year.
Employee benefits payable 26,665 14,048 12,617 89.8 Impact of increase in payable performance-based income.
Taxes payable 30,214 81,267 (51,053) (62.8) The impact of centralized payment for deferred taxes happened in the fourth
quarter of last year.
Non-current liabilities due within one year 69,574 28,651 40,923 142.8 Increase in long-term loans and debentures payable due within one year.
Other current liabilities 103,849 31,762 72,087 227.0 Increase in low-interest debentures for supplementary of liquidity during the
reporting period.
Treasury shares 375 - 375 - Repurchased A shares and H shares in the reporting period.
Other comprehensive income 7,587 (690) 8,277 - The impact on translation of foreign currency statements and changes in
effective hedging business.
Specific reserve 3,588 2,664 924 34.7 The impact of changes in balance of safety fund reserve.
Items of Consolidated Income Statement Nine-months period ended 30 September Nine-months period ended 30 September Increase/ (Decrease) Main reasons for changes
2022 2021
Amount Percentage
RMB RMB RMB million (%)
million million
Other income 5,848 1,671 4,177 250.0 Increase in VAT refund on imported LNG.
Investment (loss) /income (6,011) 9,520 (15,531) - Decrease in investment income of associates and joint ventures and the impact
of profit and loss of derivative financial instruments.
Gains/ (loss) from changes in fair value 1,765 (1,112) 2,877 - Impact of floating profit and loss of derivative financial instruments.
Impairment losses (2,376) (1,036) (1,340) 129.3 Allowance for diminution in value of inventories increased.
Items of Consolidated Cash Flow Statement Nine-months period ended 30 September Nine-months period ended 30 September Increase/(Decrease) Main reasons for changes
2022 2021
Amount Percentage
RMB RMB RMB (%)
million million million
Net cash flow from operating activities 59,244 116,744 (57,500) (49.3) Increase in working capital occupation due to the higher prices of crude oil
and refined oil product.
Refunds of taxes and levies 8,401 934 7,467 799.5 Increase in VAT refund on imported LNG.
Other cash received relating to operating activities 211,117 109,232 101,885 93.3 Increase in derivative financial instruments margins received.
Cash paid for goods and services (2,180,888) (1,650,303) (530,585) 32.2 Increase in procurement cost of crude oil and other feedstocks.
Other cash paid relating to operating activities (247,067) (122,068) (124,999) 102.4 Increase in payment of derivative financial instruments margins.
Cash received from disposal of investment 517 6,614 (6,097) (92.2) Decrease in structured deposits received year on year.
Cash received from returns on investment 8,718 6,461 2,257 34.9 Increase in dividend received from associates and joint ventures.
Net cash received from disposal of fixed assets, intangible assets and other 218 919 (701) (76.3) Decrease of gain on disposal of fixed assets.
long-term assets
Net cash received from disposal of subsidiaries and other business entities 1 4,764 (4,763) (100.0) Payment of pipeline transaction received in the same period of 2021 and no
such item in reporting period.
Other cash received relating to investing activities 52,283 26,431 25,852 97.8 Increase in amount received of time deposits with maturities over three
months.
Cash paid for acquisition of investments (6,350) (18,595) 12,245 (65.9) Decrease in entrusted loan year on year.
Net cash paid for the acquisition of subsidiaries and other business entities (7,641) (1,114) (6,527) 585.9 Cash paid for the prior year-end asset acquisition.
Other cash paid relating to investing activities (23,172) (36,949) 13,777 (37.3) Decrease in time deposits with maturities over three months year on year.
Cash received from borrowings 432,081 298,393 133,688 44.8 Increase in loans.
Cash repayments of borrowings (332,437) (252,759) (79,678) 31.5 Increase in matured debts year on year.
Cash paid for dividends, profits distribution or interest (65,759) (44,820) (20,939) 46.7 The payment of dividends for the period increased year on year.
2. Shareholders information
Total number of shareholders and top ten shareholders at the end of the
reporting period
Total number of shareholders at the end of the reporting period Total number of shareholders was 479,394, including 473,819 holders of
domestic A shares and 5,575 holders of overseas H shares.
Top ten shareholders
Name of shareholder Total number of shares held Percentage Number of shares subject to pledge or lock-ups Nature of shareholder
(%)
China Petrochemical Corporation 82,709,227,393 68.31 0 State-owned share
HKSCC (Nominees) Limited 25,371,033,298 20.96 Unknown H share
中国证券金融股份有限公司 2,325,374,407 1.92 0 A share
香港中央结算有限公司 1,203,674,433 0.99 0 A share
中国人寿保险股份有限公司－传统－普通保险产品－005L－CT001沪 394,236,547 0.33 0 A share
中央汇金资产管理有限责任公司 315,223,600 0.26 0 A share
国信证券股份有限公司 235,021,324 0.19 0 A share
中国工商银行－上证50交易型开放式指数 124,680,276 0.10 0 A share
全国社保基金一一八组合 83,162,900 0.07 0 A share
招商银行股份有限公司－上证红利交易型开放式指数证券投资基金 77,458,009 0.06 0 A share
Note: Sinopec Century Bright Capital Investment Limited, overseas wholly-owned
subsidiary of China Petrochemical Corporation, holds 767,916,000 H shares,
accounting for 0.6343% of the total issued share capital of Sinopec Corp.
Those shareholdings were included in the total number of the shares held by
HKSCC Nominees Limited.
Statement on the connected relationship or acting in concert among the
aforementioned shareholders:
Sinopec Corp. is not aware of any connected relationship or acting in concert
among or between the above-mentioned shareholders.
3. Review of operating results
In the first three quarters of 2022, the world economic growth slowed down.
China effectively coordinated pandemic prevention and control with economic
and social development and the overall economic operations recovered in an
upward trend in the third quarter with the GDP growth of 3.9% year-on-year.
The international crude oil prices rose sharply and fluctuated in the first
half and dropped in the third quarter. The average spot price of Platts Brent
was USD102.5 per barrel, up by 50.8% year-on-year. Domestic demand for natural
gas kept stable. Based on the statistics of the Company, domestic demand for
refined oil products shrank for the first half of the year and recovered with
an increase of 1.5% year-on-year in the third quarter. The demand for major
chemical products was weak due to the high crude oil price and the pandemic,
with the ethylene equivalent consumption decreased by 1.0% year-on-year.
Confronted with severe and complex environment of production and operation,
the Company gave full play to its integration advantages, actively responded
to market changes, carried out in-depth optimization of the whole industrial
chain, enhanced production and marketing coordination and achieved
high-quality results. In accordance with CASs, net profit attributable to
equity shareholders of the Company was RMB 56.660 billion, down by 5.6%
year-on-year. In accordance with IFRS, net profit attributable to equity
shareholders of the Company was RMB 57.284 billion, down by 5.9% year-on-year.
Exploration and Production: The Company seized the favourable opportunity of
high oil prices, intensified efforts in exploration and development,
consolidated the foundation of resources, improved operational performance,
and realised growth in production and profit. In terms of exploration, we
strengthened risk exploration and trap pre-exploration in new regions and
areas, and achieved a number of oil and gas discoveries, including
breakthroughs in Shunbei oil and gas fields and Tarim Basin, shale oilfield in
Bohai Bay basin and Subei basin, deep exploration of natural gas in Sichuan
basin. In terms of development, we accelerated capacity building of major
oilfields, such as Shunbei, Tahe and offshore blocks, strengthened efficiency
adjustment and fine-tuned development of mature oil fields. We also actively
promoted the capacity building of key natural gas blocks in Shunbei and
Sichuan basin, and enhanced optimization and profitability improvement of the
whole natural gas business chain. In the first three quarters of 2022, the
Company's production of oil and gas reached 363.18 million barrels of oil
equivalent, up by 2.3% year-on-year, with crude oil production reaching 210.82
million barrels, up by 1.0% year-on-year and natural gas production reaching
913.8 billion cubic feet, up by 4.1% year-on-year. The exploration and
production segment realised earnings before interest and tax (EBIT) of RMB
46.245 billion in the first three quarters.
Exploration and Production Unit Nine-month period ended 30 September Changes
2022 2021 (%)
Oil and gas production million boe 363.18 355.01 2.3
Crude oil production million barrels 210.82 208.65 1.0
China million barrels 188.05 186.59 0.8
Overseas million barrels 22.77 22.06 3.2
Natural gas production billion cubic feet 913.81 877.85 4.1
Realised crude oil price USD/barrel 94.24 60.94 54.6
Realised natural gas price USD/thousand cubic feet 7.54 6.74 11.9
Conversion: For domestic production of crude oil, 1 tonne = 7.10 barrels. For
overseas production of crude oil,
1 tonne = 7.05 barrels. For production of natural gas, 1 cubic meter = 35.31
cubic feet.
Refining: The Company actively responded to challenges brought by high crude
oil price and the pandemic, insisted on optimization and integration of
production and marketing, leveraged the adaptability of facilities and
maintained stable operation. We flexibly adjusted the utilization rate,
product slate and export pace closely in line with market and reduced the
inventory scale. We optimized the crude oil procurement and resources
allocation to reduce procurement costs. We continuously promoted to increase
the yield of chemical feedstock and refining specialities, accelerated
construction of advanced capacity, promoted structural adjustment projects in
an orderly manner and expedited the hydrogen supply projects. In the first
three quarters of 2022, the Company processed 180 million tonnes crude oil,
down by 5.6% year-on-year, yielding 103 million tonnes of refined oil
products, among which diesel output increased by 4.7% year-on-year. The
refining segment realised EBIT of RMB 20.645 billion in the first three
quarters.
Refining Unit Nine-month period ended 30 September Changes
2022 2021 (%)
Refinery throughput million tonnes 180.07 190.73 (5.6)
Gasoline, diesel and kerosene production million tonnes 103.07 108.60 (5.1)
Gasoline million tonnes 44.98 49.07 (8.3)
Diesel million tonnes 44.92 42.92 4.7
Kerosene million tonnes 13.17 16.60 (20.7)
Light chemical feedstock production million tonnes 32.21 33.71 (4.4)
Light product yield % 73.95 73.72 0.23 percentage points
Refining yield % 95.11 94.71 0.40 percentage points
Note : Including 100% production of domestic joint ventures.
Marketing and Distribution: Facing the unfavourable situation of sporadic
COVID-19 outbreaks in different regions, the Company strengthened the
integration of production and marketing, scientifically adjusted business
strategy and optimized the resources allocation. Especially, we seized the
favorable opportunity of the gradual recovery of demand and continuous
standardization of market orderliness in the third quarter and spared no
effort to expand sales and increase profitability. We actively expanded
low-sulphur bunker fuel market and further consolidated our market position.
We expanded business scope, promoted branding building and improved the
quality and profitability of non-fuel business. Efforts were made to
accelerate sales network development, digitisation and transformation to an
integrated energy service provider of petrol, gas, hydrogen, power and
services. In the first three quarters, domestic sales volume of refined oil
products was 121.99 million tonnes, among which the sales volume for the third
quarter was 43.53 million tonnes, up by 16.4% quarter-on-quarter. The
marketing and distribution segment realised EBIT of RMB 23.154 billion in the
first three quarters.
Marketing and Distribution Unit Nine-month period ended 30 September Changes
2022 2021 (%)
Total sales volume of refined oil products million tonnes 151.60 166.59 (9.0)
Total domestic sales volume of refined oil products million tonnes 121.99 127.88 (4.6)
Retail million tonnes 79.09 83.70 (5.5)
Direct sales & Distribution million tonnes 42.91 44.18 (2.9)
Annualised average throughput per station tonnes/station 3,430 3,633 (5.6)
Note: The total sales volume of refined oil products includes the amount of
refined oil marketing and trading sales volume.
Chemicals: Facing difficulty situation of high cost, high inventory and low
margin in domestic chemical industrial chain, the Company closely responded to
market change, dynamically optimized the structure of feedstocks and products,
optimized utilization rate according to profitability, maintained high
utilization rate in profitable facilities, increased the production of EVA and
BR and increased production and profits in coal chemical business. We
comprehensively promoted the construction of capacity in Zhenhai, Tianjin
Nangang, Hainan and Jiujiang. In the first three quarters, ethylene production
reached 10 million tonnes, up by 2.6% year-on-year. We made full efforts to
ensure sufficient supply to our strategic customers, actively increased
export, and vigorously expanded high-end markets. In the first three quarters,
the total sales volume of chemical products was 60.40 million tonnes, with a
slight decrease year-on-year. Due to the sharp decline of gross margin of
chemical products, the chemicals segment realised EBIT of RMB -1.061 billion
in the first three quarters.
Chemicals Unit Nine-month period ended 30 September Changes
2022 2021 (%)
Ethylene thousand tonnes 10,002 9,752 2.6
Synthetic resin thousand tonnes 13,790 14,002 (1.5)
Synthetic rubber thousand tonnes 936 890 5.2
Monomers and polymers for synthetic fibre thousand tonnes 6,705 6,819 (1.7)
Synthetic fibre thousand tonnes 834 1,031 (19.1)
Note : Including 100% production of domestic joint ventures.
Capital expenditures:
Capital expenditures in the first three quarters was RMB 104.0 billion, of
which RMB 51.6 billion was spent in E&P segment, mainly for the crude oil
capacity building in Shunbei and Tahe, natural gas capacity building in
Chuanxi and Dongsheng, and the construction of storage and transportation
facilities such as the relocation of Dongying crude oil depot and Longkou LNG
projects; RMB 13.6 billion was spent in refining segment, mainly for Anqing
and Yangzi refining upgrading projects and phase two of Zhenhai refining and
chemical projects; RMB 6.5 billion was spent in marketing and distribution
segment, mainly for the upgrading of existing stations and construction of
integrated energy stations covering gasoline, gas, hydrogen, power and
service, as well as logistics facilities; RMB 29.5 billion was spent in
chemicals segment, mainly for Hainan and Tianjin Nangang ethylene projects,
Jiujiang aromatics project, Zhenhai refining and chemical project phase II and
Yizheng PTA project; RMB 2.8 billion was spent in corporate and others, mainly
for construction of science and technology research and IT projects.
4. Other significant events
The progress of share repurchase
On 18 May 2022, the Annual General Meeting for 2021, the First A Shareholders
Class Meeting for 2022 and the First H Shareholders Class Meeting for 2022 of
Sinopec Corp. considered and approved the Resolution to Grant to the Board a
Mandate to Buy Back Domestic Shares and/or Overseas-listed Foreign Shares of
Sinopec Corp., and authorized the Board (or the director authorised by the
Board) to buy back A Shares or H Shares not exceeding 10% of the number of A
Shares or H Shares of the Company in issue.
On 26 August 2022, the twelfth meeting of the eighth session of the Board
considered and approved the Plan on Repurchasing the Company's Shares by
Centralized Bidding Transactions. For details, please refer to the Company's
announcements disclosed on the website of the Shanghai Stock Exchange on 29
August 2022 and 20 September 2022.
On 21 September 2022, the Company implemented the repurchase of A shares and H
shares. As of 30 September 2022, the Company has repurchased 48 million A
shares, accounting for 0.04% of the Company's total issued share capital on 30
September 2022, and the total amount paid was RMB 203,905,495.60 (exclusive of
transaction fees). For details, please refer to the Progress Announcement on
the Repurchase of A Shares by Centralized Bidding Transactions disclosed by
the Company on the website of the Shanghai Stock Exchange on 10 October 2022;
the Company has repurchased 54.414 million H Shares, accounting for
approximately 0.04% of the Company's total issued share capital on 30
September 2022, and the total amount paid was HK$188,781,540.60 (exclusive of
transaction fees).
This quarterly results announcement is published in both Chinese and English
languages. In the event of any inconsistency between the two versions, the
Chinese version shall prevail.
By Order of the Board
Ma Yongsheng
Chairman
28 October 2022
5 Appendix
5.1 Quarterly financial statements prepared under China Accounting Standards
for Business Enterprises (CASs)
Consolidated Balance Sheet
As at 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items At 30 September 2022 At 31 December 2021
Current assets:
Cash at bank and on hand 216,728 221,989
Financial assets held for trading 1,013 -
Derivative financial assets 43,768 18,371
Accounts receivable 65,796 34,861
Receivables financing 5,660 5,939
Prepayments 12,162 9,267
Other receivables 30,086 35,664
Inventories 282,719 207,433
Other current assets 19,463 24,500
Total current assets 677,395 558,024
Non-current assets:
Long-term equity investments 220,888 209,179
Other equity instrument investments 785 767
Fixed assets 602,977 598,932
Construction in progress 179,990 155,939
Right-of-use assets 180,769 184,974
Intangible assets 119,856 119,210
Goodwill 8,779 8,594
Long-term deferred expenses 10,934 10,007
Deferred tax assets 21,478 19,389
Other non-current assets 26,668 24,240
Total non-current assets 1,373,124 1,331,231
Total assets 2,050,519 1,889,255
Consolidated Balance Sheet (Continued)
Current liabilities:
Short-term loans 24,610 27,366
Derivative financial liabilities 16,454 3,223
Bills payable 10,096 11,721
Accounts payable 233,680 203,919
Contract liabilities 145,290 124,622
Employee benefits payable 26,665 14,048
Taxes payable 30,214 81,267
Other payables 124,461 114,701
Non-current liabilities due within one year 69,574 28,651
Other current liabilities 103,849 31,762
Total current liabilities 784,893 641,280
Non-current liabilities:
Long-term loans 81,873 49,341
Debentures payable 13,062 42,649
Lease liabilities 168,718 170,233
Provisions 46,475 43,525
Deferred tax liabilities 9,767 7,910
Other non-current liabilities 20,194 18,276
Total non-current liabilities 340,089 331,934
Total liabilities 1,124,982 973,214
Shareholders' equity:
Share capital 121,071 121,071
Capital reserve 118,118 120,188
Less: Treasury shares 375 -
Other comprehensive income 7,587 (690)
Specific reserve 3,588 2,664
Surplus reserves 213,224 213,224
Retained earnings 318,060 318,645
Total equity attributable to shareholders of the Company 781,273 775,102
Minority interests 144,264 140,939
Total shareholders' equity 925,537 916,041
Total liabilities and shareholders' equity 2,050,519 1,889,255
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Balance Sheet
As at 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items At 30 September 2022 At 31 December 2021
Current assets：
Cash at bank and on hand 103,962 110,691
Financial assets held for trading 2 -
Derivative financial assets 15,368 4,503
Accounts receivable 28,510 21,146
Receivables financing 1,684 227
Prepayments 4,949 4,540
Other receivables 38,008 46,929
Inventories 82,074 63,661
Other current assets 18,573 23,408
Total current assets 293,130 275,105
Non-current assets：
Long-term equity investments 376,299 360,847
Other equity instrument investments 201 201
Fixed assets 278,302 284,622
Construction in progress 78,198 66,146
Right-of-use assets 92,595 105,712
Intangible assets 7,782 9,334
Long-term deferred expenses 2,891 2,875
Deferred tax assets 7,490 8,715
Other non-current assets 42,113 34,227
Total non-current assets 885,871 872,679
Total assets 1,179,001 1,147,784
Current liabilities：
Short-term loans 1,351 16,550
Derivative financial liabilities 12,269 1,121
Bills payable 1,440 6,058
Accounts payable 86,748 85,307
Contract liabilities 9,491 7,505
Employee benefits payable 17,143 8,398
Taxes payable 17,233 46,333
Other payables 218,198 211,179
Non-current liabilities due within one year 40,916 16,737
Other current liabilities 75,220 13,702
Total current liabilities 480,009 412,890
Balance Sheet (Continued)
Non-current liabilities：
Long-term loans 52,390 34,258
Debentures payable 9,536 31,522
Lease liabilities 92,452 104,426
Provisions 37,679 35,271
Other non-current liabilities 2,764 3,103
Total non-current liabilities 194,821 208,580
Total liabilities 674,830 621,470
Shareholders' equity：
Share capital 121,071 121,071
Capital reserve 66,469 67,897
Less: Treasury shares 375 -
Other comprehensive income 4,132 6,024
Specific reserve 1,997 1,658
Surplus reserves 213,224 213,224
Retained earnings 97,653 116,440
Total shareholders' equity 504,171 526,314
Total liabilities and shareholders' equity 1,179,001 1,147,784
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Consolidated Income Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items The third quarter of 2022 (July-September) The third quarter of 2021 (July-September) Nine-month period Nine-month period
ended 30 September 2022 ended 30 September 2021
I. Operating income 841,196 740,918 2,453,322 2,001,691
II. Total Operating costs 837,227 714,314 2,374,159 1,916,509
Including: Operating costs 735,800 603,238 2,066,625 1,601,524
Taxes and surcharges 65,817 65,952 200,226 186,852
Selling and distribution expenses 14,654 16,616 42,784 48,347
General and administrative expenses 13,439 20,038 39,622 56,208
Research and development expenses 2,778 2,951 9,088 8,311
Financial expenses 2,604 2,352 7,941 7,254
Including: Interest expenses 4,363 3,896 12,487 11,556
Interest income 1,581 1,458 4,593 4,121
Exploration expenses, 2,135 3,167 7,873 8,013
including dry holes
Add: Other income 3,727 427 5,848 1,671
Investment income 4,296 4,630 (6,011) 9,520
Including: Income from investment 3,950 5,903 11,277 17,036
in associates and joint ventures
Gains from changes in fair value 3,323 (1,228) 1,765 (1,112)
Credit impairment reversals/ (losses) 67 (195) 139 (140)
Impairment losses (920) (110) (2,376) (1,036)
Asset disposal gains 114 152 249 433
III. Operating profit 14,576 30,280 78,777 94,518
Add: Non-operating income 822 500 1,677 1,196
Less: Non-operating expenses 743 670 1,822 1,751
IV. Profit before taxation 14,655 30,110 78,632 93,963
Less: Income tax expense 1,261 5,979 15,722 21,031
V. Net profit 13,394 24,131 62,910 72,932
Including: net (loss) /profit of acquiree before business combination under - (62) - 211
common control
Classification by going concern:
(i) Continuous operating net profit 13,394 24,131 62,910 72,932
(ii) Termination of net profit - - - -
Consolidated Income Statement (Continued)
Classification by ownership:
(i) Equity shareholders of the Company 13,130 20,603 56,660 60,029
(ii) Minority interests 264 3,528 6,250 12,903
VI. Other comprehensive income 1,628 3,355 18,335 11,463
Items that may not be reclassified subsequently to profit or loss: (2) 1 (19) 9
Changes in fair value of other equity instrument investments (2) 1 (19) 9
Items that may be reclassified subsequently to profit or loss: 1,630 3,354 18,354 11,454
Other comprehensive income that can be converted into profit or loss (1,617) 87 1,780 208
under the equity method
Cost of hedging reserve 506 (20) (338) (60)
Cash flow hedges (2,483) 3,066 7,775 11,706
Foreign currency translation differences 5,224 221 9,137 (400)
VII. Total comprehensive income 15,022 27,486 81,245 84,395
Equity shareholders of the Company 13,807 24,032 73,370 71,442
Minority interests 1,215 3,454 7,875 12,953
VIII. Earnings per share
(i) Basic earnings per share (RMB/Share) 0.108 0.170 0.468 0.496
(ii) Diluted earnings per share (RMB/Share) 0.108 0.170 0.468 0.496
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Income Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items The third quarter of 2022 (July-September) The third quarter of 2021 (July-September) Nine-month period Nine-month period
ended 30 September 2022 ended 30 September 2021
I. Operating income 329,242 265,651 979,672 734,773
Less: Operating costs 271,636 203,170 792,959 566,597
Taxes and surcharges 41,749 39,146 128,206 111,871
Selling and distribution expenses 383 884 1,598 2,750
General and administrative expenses 5,585 9,353 17,250 25,739
Research and development expenses 1,467 2,637 7,310 7,599
Financial expenses 2,731 2,845 7,726 8,227
Including: Interest expenses 3,466 2,228 10,259 6,421
Interest income 878 662 2,614 1,822
Exploration expenses, including dry holes 1,924 2,847 6,718 7,029
Add: Other income 3,209 201 4,654 944
Investment income 6,366 12,337 23,666 22,939
Including: Income from investment in associates and joint ventures 942 1,979 3,956 6,345
Gains from changes in fair value (513) (243) (272) (11)
Credit impairment reversals 3 6 2 8
Impairment losses 10 1 (726) (752)
Asset disposal gains 3 9 124 6
II. Operating profit 12,845 17,080 45,353 28,095
Add: Non-operating income 492 (7) 673 196
Less: Non-operating expenses 358 289 1,029 808
III. Profit before taxation 12,979 16,784 44,997 27,483
Less: Income tax expense 2,093 1,381 6,608 4,194
IV. Net profit 10,886 15,403 38,389 23,289
(i) Continuous operating net profit 10,886 15,403 38,389 23,289
(ii) Termination of net profit - - - -
Income Statement (continued)
V. Other comprehensive income (13) 4,444 4,743 10,398
Items that may not be reclassified subsequently to profit or loss: - - (5) -
Changes in fair value of other equity instrument investments - - (5) -
Items that may be reclassified subsequently to profit or loss: (13) 4,444 4,748 10,398
Other comprehensive income that can be converted into profit or loss (14) 90 125 108
under the equity method
Cash flow hedges 1 4,354 4,623 10,290
VI. Total comprehensive income 10,873 19,847 43,132 33,687
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Consolidated Cash Flow Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Nine-month period Nine-month period
ended 30 September 2022 ended 30 September 2021
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 2,627,885 2,112,459
Refund of taxes and levies 8,401 934
Other cash received relating to operating activities 211,117 109,232
Sub-total of cash inflows 2,847,403 2,222,625
Cash paid for goods and services (2,180,888) (1,650,303)
Cash paid to and for employees (61,586) (57,226)
Payments of taxes and levies (298,618) (276,284)
Other cash paid relating to operating (247,067) (122,068)
activities
Sub-total of cash outflows (2,788,159) (2,105,881)
Net cash flow from operating activities 59,244 116,744
II. Cash flows from investing activities:
Cash received from disposal of investments 517 6,614
Cash received from returns on investments 8,718 6,461
Net cash received from disposal of fixed assets, intangible assets and other 218 919
long-term assets
Net cash received from disposal of subsidiaries and other business entities 1 4,764
Other cash received relating to investing 52,283 26,431
activities
Sub-total of cash inflows 61,737 45,189
Cash paid for acquisition of fixed assets, intangible assets and other (94,485) (88,602)
long-term assets
Cash paid for acquisition of investments (6,350) (18,595)
Cash paid for acquisition of subsidiaries and other business units (7,641) (1,114)
Other cash paid relating to investing activities (23,172) (36,949)
Sub-total of cash outflows (131,648) (145,260)
Net cash flow from investing activities (69,911) (100,071)
III. Cash flows from financing activities:
Cash received from capital contributions 1,935 604
Including: Cash received from minority shareholders' capital contributions to 1,935 604
subsidiaries
Consolidated Cash Flow Statement (Continued)
Cash received from borrowings 432,081 298,393
Other cash received relating to financing activities 1,347 115
Sub-total of cash inflows 435,363 299,112
Cash repayments of borrowings (332,437) (252,759)
Cash paid for dividends, profits distribution or interest (65,759) (44,820)
Including: Subsidiaries' cash payments for distribution of dividends or (4,360) (5,741)
profits to minority shareholders
Other cash paid relating to financing (13,290) (14,762)
activities
Sub-total of cash outflows (411,486) (312,341)
Net cash flow from financing activities 23,877 (13,229)
IV. Effects of changes in foreign exchange rate 4,798 (177)
V. Net increase in cash and cash equivalents 18,008 3,267
Add: Initial balance of cash and cash equivalents 108,590 87,559
VI. Ending balance of cash and cash equivalents 126,598 90,826
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Cash Flow Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Nine-month period Nine-month period
ended 30 September 2022 ended 30 September 2021
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 1,100,876 805,374
Refund of taxes and levies 5,731 602
Other cash received relating to operating activities 13,893 8,306
Sub-total of cash inflows 1,120,500 814,282
Cash paid for goods and services (837,202) (582,164)
Cash paid to and for employees (31,695) (29,678)
Payments of taxes and levies (175,552) (154,927)
Other cash paid relating to operating activities (53,355) (14,208)
Sub-total of cash outflows (1,097,804) (780,977)
Net cash flow from operating activities 22,696 33,305
II. Cash flows from investing activities:
Cash received from disposal of investments 5,038 16,642
Cash received from returns on investments 23,123 17,791
Net cash received from disposal of fixed assets, intangible assets and 45 56
other long-term assets
Other cash received relating to investing activities 146,656 93,230
Sub-total of cash inflows 174,862 127,719
Cash paid for acquisition of fixed assets, intangible assets and other (42,868) (38,050)
long-term assets
Cash paid for acquisition of investments (20,452) (37,610)
Cash paid for acquisition of subsidiaries and other business units (4,221) (964)
Other cash paid relating to investing activities (136,949) (93,843)
Sub-total of cash outflows (204,490) (170,467)
Net cash flow from investing activities (29,628) (42,748)
III. Cash flows from financing activities:
Cash received from borrowings 187,385 151,145
Other cash received relating to financing activities 294,614 220,822
Sub-total of cash inflows 481,999 371,967
Cash repayments of borrowings (121,305) (121,860)
Cash paid for dividends or interest (63,082) (41,086)
Other cash paid relating to financing activities (288,135) (206,415)
Sub-total of cash outflows (472,522) (369,361)
Net cash flow from financing activities 9,477 2,606
Cash Flow Statement (Continued)
IV. Effects of changes in foreign exchange rate (8) -
V. Net increase/ (decrease) in cash and cash equivalents 2,537 (6,837)
Add：Initial balance of cash and cash equivalents 34,575 28,081
VI. Ending balance of cash and cash equivalents 37,112 21,244
Ma Yongsheng Yu
Baocai Shou Donghua
Chairman
President Chief Financial Officer
(Legal representative)
Segment Reporting
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Nine-month period Nine-month period
ended 30 September 2022 ended 30 September 2021
Income from principal operations
Exploration and production
External sales 138,870 104,139
Inter-segment sales 92,164 61,683
Subtotal 231,034 165,822
Refining
External sales 148,241 122,238
Inter-segment sales 1,028,879 862,823
Subtotal 1,177,120 985,061
Marketing and distribution
External sales 1,227,731 977,324
Inter-segment sales 9,886 4,745
Subtotal 1,237,617 982,069
Chemicals
External sales 342,259 306,570
Inter-segment sales 60,194 48,973
Subtotal 402,453 355,543
Corporate and others
External sales 550,609 446,160
Inter-segment sales 775,647 527,164
Subtotal 1,326,256 973,324
Elimination of inter-segment sales (1,966,770) (1,505,388)
Consolidated income from principal operations 2,407,710 1,956,431
Income from other operations
Exploration and production 4,465 5,011
Refining 2,874 3,723
Marketing and distribution 28,952 27,216
Chemicals 7,496 7,754
Corporate and others 1,825 1,556
Consolidated income from other operations 45,612 45,260
Consolidated operating income 2,453,322 2,001,691
Segment Reporting (Continued)
Operating profit
By segment
Exploration and production 39,165 7,673
Refining 20,023 53,310
Marketing and distribution 21,759 22,416
Chemicals (4,502) 15,087
Corporate and others 15,632 4,609
Elimination (7,210) (11,835)
Total segment operating profit 84,867 91,260
Investment income
Exploration and production 2,848 2,698
Refining (74) 785
Marketing and distribution 494 1,626
Chemicals 2,986 7,500
Corporate and others (12,265) (3,089)
Total segment investment (loss) /income (6,011) 9,520
Financial expenses (7,941) (7,254)
Gains/ (losses) from changes in fair value 1,765 (1,112)
Asset disposal gains 249 433
Other income 5,848 1,671
Operating profit 78,777 94,518
Add: Non-operating income 1,677 1,196
Less: Non-operating expenses 1,822 1,751
Profit before taxation 78,632 93,963
5.2 Quarterly financial statements prepared under International Financial
Reporting Standards (IFRS)
Consolidated Income Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Current Amount Amount of the previous period (July-September) Nine-month period ended 30 September 2022 Nine-month period ended 30 September 2021
(July-September)
Revenue
Revenue from primary business 825,474 724,908 2,407,710 1,956,431
Other operating revenues 15,722 16,010 45,612 45,260
Subtotal 841,196 740,918 2,453,322 2,001,691
Operating expenses
Purchased crude oil, products and (700,430) (576,176) (1,962,613) (1,521,731)
operating supplies and expenses
Selling, general and administrative expenses (13,965) (13,383) (40,762) (39,193)
Depreciation, depletion and amortisation (27,911) (28,282) (81,549) (82,748)
Exploration expenses, including dry holes (2,135) (3,167) (7,873) (8,013)
Personnel expenses (25,264) (24,937) (74,487) (70,132)
Taxes other than income tax (65,817) (65,952) (200,226) (186,852)
Impairment reversals/ (losses) on trade and other receivables 67 (195) 139 (140)
Other operating income/ (expense), net 7,221 (2,287) (10,065) (7,857)
Total operating expenses (828,234) (714,379) (2,377,436) (1,916,666)
Operating profit 12,962 26,539 75,886 85,025
Finance costs
Interest expense (4,363) (3,896) (12,487) (11,556)
Interest income 1,581 1,458 4,593 4,121
Foreign currency exchange gains/ (losses), net 178 86 (47) 181
Net finance costs (2,604) (2,352) (7,941) (7,254)
Investment income 74 79 200 193
Share of profits less losses from associates and joint ventures 3,950 5,903 11,277 17,036
Profit before taxation 14,382 30,169 79,422 95,000
Income tax expense (1,261) (5,979) (15,722) (21,031)
Profit for the period 13,121 24,190 63,700 73,969
Attributable to：
Owners of the Company 12,833 20,665 57,284 60,892
Non-controlling interests 288 3,525 6,416 13,077
Profit for the period 13,121 24,190 63,700 73,969
Earnings per share：
Basic earnings per share (RMB) 0.106 0.171 0.473 0.503
Diluted earnings per share (RMB) 0.106 0.171 0.473 0.503
Consolidated Statement of Comprehensive Income
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Current Amount Amount of the previous period Nine-month period Nine-month period
(July-September) (July-September) ended 30 September 2022 ended 30 September 2021
Profit for the period 13,121 24,190 63,700 73,969
Other comprehensive income: 1,628 3,355 18,335 11,463
Items that may not be reclassified subsequently to profit or loss:
Equity investments at fair value through other comprehensive income (2) 1 (19) 9
Items that may be reclassified subsequently to profit or loss:
Share of other comprehensive income of associates and joint ventures (1,617) 87 1,780 208
Cash flow hedges (2,483) 3,066 7,775 11,706
Cost of hedging reserve 506 (20) (338) (60)
Foreign currency translation differences 5,224 221 9,137 (400)
Total comprehensive income for the period 14,749 27,545 82,035 85,432
Attributable to:
Shareholders of the Company 13,510 24,091 73,994 72,302
Non-controlling interests 1,239 3,454 8,041 13,130
Consolidated Balance Sheet
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items At 30 September 2022 At 31 December 2021
Non-current assets：
Property, plant and equipment, net 602,881 598,925
Construction in progress 179,990 155,939
Right-of-use assets 266,013 268,408
Goodwill 8,779 8,594
Interest in associates 160,240 148,729
Interest in joint ventures 60,648 60,450
Financial assets at fair value through other 785 767
comprehensive income
Deferred tax assets 21,478 19,389
Long-term prepayments and other non-current assets 72,310 70,030
Total non-current assets 1,373,124 1,331,231
Current assets:
Cash and cash equivalents 126,598 108,590
Time deposits with financial institutions 90,130 113,399
Financial assets at fair value through profit and loss 1,013 -
Derivatives financial assets 43,768 18,371
Trade accounts receivable and bills receivable 65,796 34,861
Financial assets at fair value through other 5,660 5,939
comprehensive income
Inventories 282,719 207,433
Prepaid expenses and other current assets 61,711 69,431
Total current assets 677,395 558,024
Current liabilities：
Short-term debts 128,556 35,252
Loans from Sinopec Group Company and fellow 6,454 2,873
subsidiaries
Lease liabilities 16,678 15,173
Derivatives financial liabilities 16,454 3,223
Trade accounts payable and bills payable 243,776 215,640
Contract liabilities 145,290 124,622
Other payables 225,242 239,688
Income tax payable 2,443 4,809
Total current liabilities 784,893 641,280
Consolidated Balance Sheet (Continued)
Net current liabilities 107,498 83,256
Total assets less current liabilities 1,265,626 1,247,975
Non-current liabilities：
Long-term debts 79,789 78,300
Loans from Sinopec Group Company and fellow subsidiaries 15,146 13,690
Lease liabilities 168,718 170,233
Deferred tax liabilities 9,767 7,910
Provisions 46,475 43,525
Other non-current liabilities 21,117 19,243
Total non-current liabilities 341,012 332,901
Total net assets 924,614 915,074
Equity：
Share capital 121,071 121,071
Reserves 659,323 653,111
Total equity attributable to shareholders of the Company 780,394 774,182
Non-controlling interests 144,220 140,892
Total equity 924,614 915,074
Consolidated Cash Flow Statement
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Nine-month period Nine-month period
ended 30 September 2022 ended 30 September 2021
Net cash generated from operating activities(a) 59,244 116,744
Investing activities
Capital expenditure (82,142) (78,185)
Exploratory wells expenditure (12,343) (10,417)
Purchase of investments (5,341) (10,363)
Payment for financial assets at fair value through profit or loss (1,009) (8,232)
Proceeds from settlement of financial assets at fair value through profit or 6 4,739
loss
Payment for acquisition of subsidiary, net of cash acquired (7,641) (1,114)
Proceeds from disposal of investments 512 6,639
Proceeds from disposal of property, plant, equipment and other non-current 218 919
assets
Increase in time deposits with maturities over three months (22,071) (32,711)
Decrease in time deposits with maturities over three months 47,491 22,698
Interest received 3,489 2,407
Investment and dividend income received 8,718 6,461
Proceeds from/ (payments of) other investing activities 202 (2,912)
Net cash used in investing activities (69,911) (100,071)
Financing activities
Proceeds from bank and other loans 432,081 298,393
Repayments of bank and other loans (332,437) (252,759)
Contributions to subsidiaries from non-controlling interests 1,935 604
Dividends paid by the Company (56,903) (35,111)
Distributions by subsidiaries to non-controlling interests (4,360) (5,741)
Interest paid (4,496) (3,968)
Payments made to acquire non-controlling interests - (1,410)
Repayments of lease liabilities (10,877) (12,778)
Proceeds from other financing activities 1,347 115
Repayments of other financing activities (2,413) (574)
Net cash generated from/ (used in) financing activities 23,877 (13,229)
Net increase in cash and cash equivalents 13,210 3,444
Cash and cash equivalents at 1 January 108,590 87,559
Effect of foreign currency exchange rate changes 4,798 (177)
Cash and cash equivalents at 30 September 126,598 90,826
Note to consolidated statement of Cash Flows
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
(a) Reconciliation of profit before taxation to net cash generated from
operating activities
Items Nine-month period ended 30 Nine-month period ended 30
September 2022 September 2021
Operating activities
Profit before taxation 79,422 95,000
Adjustments for:
Depreciation, depletion and amortisation 81,549 82,748
Dry hole costs written off 5,556 5,427
Share of profits less losses from associates and joint ventures (11,277) (17,036)
Investment income (200) (193)
Interest income (4,593) (4,121)
Interest expense 12,487 11,556
(Gain) /loss on foreign currency exchange rate changes and (451) 1,203
derivative financial instruments
Loss on disposal of property, plant, equipment and 205 125
other non-current assets, net
Impairment losses on assets 2,376 1,036
Impairment (reversals) /losses on trade and other receivables (139) 140
Operating profit before change of operating capital 164,935 175,885
Accounts receivable and other current assets (26,933) (62,740)
Inventories (77,664) (46,565)
Accounts payable and other current liabilities 13,041 70,880
Subtotal 73,379 137,460
Income tax paid (14,135) (20,716)
Net cash generated from operating activities 59,244 116,744
Segment Reporting
For the nine-month period ended 30 September 2022
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Nine-month period Nine-month period
ended 30 September 2022 ended 30 September 2021
Revenue from primary business
Exploration and production
External sales 138,870 104,139
Inter-segment sales 92,164 61,683
Subtotal 231,034 165,822
Refining
External sales 148,241 122,238
Inter-segment sales 1,028,879 862,823
Subtotal 1,177,120 985,061
Marketing and distribution
External sales 1,227,731 977,324
Inter-segment sales 9,886 4,745
Subtotal 1,237,617 982,069
Chemicals
External sales 342,259 306,570
Inter-segment sales 60,194 48,973
Subtotal 402,453 355,543
Corporate and others
External sales 550,609 446,160
Inter-segment sales 775,647 527,164
Subtotal 1,326,256 973,324
Elimination of inter-segment sales (1,966,770) (1,505,388)
Revenue from primary business 2,407,710 1,956,431
Other operating revenues
Exploration and production 4,465 5,011
Refining 2,874 3,723
Marketing and distribution 28,952 27,216
Chemicals 7,496 7,754
Corporate and others 1,825 1,556
Other operating revenues 45,612 45,260
Revenue 2,453,322 2,001,691
Segment Reporting (Continued)
Result
Operating profit/ (loss)
By segment
Exploration and production 43,591 8,708
Refining 20,849 53,567
Marketing and distribution 21,120 21,628
Chemicals (4,037) 15,757
Corporate and others 1,573 (2,800)
Elimination (7,210) (11,835)
Total segment operating profit 75,886 85,025
Share of profits/ (losses) from associates and joint ventures
Exploration and production 2,654 2,134
Refining (245) 728
Marketing and distribution 1,994 2,678
Chemicals 3,131 7,556
Corporate and others 3,743 3,940
Aggregate share of profits from associates and joint ventures 11,277 17,036
Investment income
Exploration and production - 62
Refining 41 (1)
Marketing and distribution 40 10
Chemicals (155) (56)
Corporate and others 274 178
Aggregate investment income 200 193
Net finance costs (7,941) (7,254)
Profit before taxation 79,422 95,000
5.3 Differences between consolidated financial statements prepared in
accordance with the accounting policies complying with the accounting policies
complying with CASs and IFRS (Unaudited)
Other than the differences in the classifications of certain financial
statements captions and the accounting for the items described below, there
are no material differences between the Group's consolidated financial
statements prepared in accordance with the accounting policies complying with
CASs and IFRS. The reconciliation presented below is included as supplemental
information, is not required as part of the basic financial statements and
does not include differences related to classification, presentation or
disclosures. Such information has not been subject to independent audit or
review. The major differences are:
(i) Government grants
Under CASs, grants from the government are credited to capital reserve if
required by relevant governmental regulations. Under IFRS, government grants
relating to the purchase of fixed assets are recognised as deferred income and
are transferred to the income statement over the useful life of these assets.
(ii) Safety production fund
Under CASs, safety production fund should be recognised in profit or loss with
a corresponding increase in reserve according to PRC regulations. Such reserve
is reduced for expenses incurred for safety production purposes or, when
safety production related fixed assets are purchased, is reduced by the
purchased cost with a corresponding increase in the accumulated depreciation.
Such fixed assets are not depreciated thereafter. Under IFRS, payments are
expensed as incurred, or capitalised as fixed assets and depreciated according
to applicable depreciation methods.
Effects of major differences between the net profit under CASs and the profit
for the period under IFRS are analysed as follows:
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items Nine-month period Nine-month period
ended 30 September 2022 ended 30 September 2021
Net profit under CASs 62,910 72,932
Adjustments:
Government grants(i) 44 37
Safety production fund(ii) 1,088 1,000
Other (342) -
Profit for the period under IFRS 63,700 73,969
Effects of major differences between the shareholders' equity under CASs and
the total equity under IFRS are analysed as follows:
Units: million Currency: RMB Type: unaudited
Items As of 30 September 2022 As of 31 December 2021
Shareholders' equity under CASs 925,537 916,041
Adjustments:
Government grants(i) (923) (967)
Total equity under IFRS 924,614 915,074
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