REG - China Pet &Chem Corp - Half-year Report <Origin Href="QuoteRef">600028.SS</Origin> - Part 6
29/08/2017 07:08
- Part 6: For the preceding part double click ID:nRSc0740Pe
includes information about significant but not temporary decline in
the fair value of the equity investment instrument below its cost. The Group assesses equity instruments classified as
available-for-sale separately at the end of each reporting period, it will be considered as impaired if the fair value of
the equity instrument at reporting date is less than its initial investment cost over 50% (including 50%) or the duration
of the fair value below its initial investment cost is more than one (including one) year, if the fair value of the equity
instrument at reporting date is less than its initial investment cost over 20% (including 20%) but below 50%, other related
factors such as price volatility will be taken into consideration to assess if it is impaired.
When available-for-sale financial assets measured at fair value are impaired, despite not being derecognised, the
cumulative losses resulted from the decrease in fair value which had previously been recognised directly in shareholders'
equity, are reversed and charged to profit or loss.
3 SIGNIFICANT ACCOUNTING POLICIES (Continued)
(11) Impairment of financial assets and non-financial long-term assets (Continued)
(a) Impairment of financial assets (Continued)
- Available-for-sale financial assets (Continued)
When available-for-sale financial assets measured at cost are impaired, the differences between the book value and the
discounted present value with the market return of similar financial assets are charged to profit or loss.
Impairment loss of available-for-sale debt instrument is reversed, if the reason for the subsequent increase in fair value
is objectively as a result of an event occurred after the recognition of the impairment loss. Impairment loss for
available-for-sale equity instrument is not reversed through profit or loss. Impairment loss for available-for-sale
financial assets measured by the cost cannot be reversed in the following period.
(b) Impairment of other non-financial long-term assets
Internal and external sources of information are reviewed at each balance sheet date for indications that the following
assets, including fixed assets, oil and gas properties, construction in progress, goodwill, intangible assets and
investments in subsidiaries, associates and joint ventures may be impaired.
Assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not
be recoverable. The recoverable amounts of goodwill and intangible assets with uncertain useful lives are estimated
annually no matter there are any indications of impairment. Goodwill is tested for impairment together with related asset
units or groups of asset units.
An asset unit is the smallest identifiable group of assets that generates cash inflows largely independent of the cash
inflows from other assets or groups of assets. An asset unit comprises related assets that generate associated cash
inflows. In identifying an asset unit, the Group primarily considers whether the asset unit is able to generate cash
inflows independently as well as the management style of production and operational activities, and the decision for the
use or disposal of asset.
The recoverable amount is the greater of the fair value less costs to sell and the present value of expected future cash
flows generated by the asset (or asset unit, set of asset units).
Fair value less costs to sell of an asset is based on its selling price in an arm's length transaction less any direct
costs attributable to the disposal. Present value of expected future cash flows is the estimation of future cash flows to
be generated from the use of and upon disposal of the asset, discounted at an appropriate pre-tax discount rate over the
asset's remaining useful life.
If the recoverable amount of an asset is less than its carrying amount, the carrying amount is reduced to the recoverable
amount. The amount by which the carrying amount is reduced is recognised as an impairment loss in profit or loss. A
provision for impairment loss of the asset is recognised accordingly. Impairment losses related to an asset unit or a set
of asset units first reduce the carrying amount of any goodwill allocated to the asset unit or set of asset units, and then
reduce the carrying amount of the other assets in the asset unit or set of asset units on a pro rata basis. However, the
carrying amount of an impaired asset will not be reduced below the highest of its individual fair value less costs to sell
(if determinable), the present value of expected future cash flows (if determinable) and zero.
Impairment losses for assets are not reversed.
(12) Long-term deferred expenses
Long-term deferred expenses are amortised on a straight-line basis over their beneficial periods.
(13) Employee benefits
Employee benefits are all forms of considerations and compensation given in exchange for services rendered by employees,
including short term compensation, post-employment benefits, termination benefits and other long term employee benefits.
(a) Short term compensation
Short term compensation includes salaries, bonuses, allowances and subsidies, employee benefits, medical insurance
premiums, work-related injury insurance premium, maternity insurance premium, contributions to housing fund, unions and
education fund and short-term absence with payment etc. When an employee has rendered service to the Group during an
accounting period, the Group shall recognise the short term compensation actually incurred as a liability and charged to
the cost of an asset or to profit or loss in the same period, and non-monetary benefits are valued with the fair value.
3 SIGNIFICANT ACCOUNTING POLICIES (Continued)
(13) Employee benefits (Continued)
(b) Post-employment benefits
The Group classifies post-employment benefits into either Defined Contribution Plan (DC plan) or Defined Benefit Plan (DB
plan). DC plan means the Group only contributes a fixed amount to an independent fund and no longer bears other payment
obligation; DB plan is post-employment benefits other than DC plan. In this reporting period, the post-employment benefits
of the Group primarily comprise basic pension insurance and unemployment insurance and both of them are DC plans.
Basic pension insurance
Employees of the Group participate in the social insurance system established and managed by local labor and social
security department. The Group makes basic pension insurance to the local social insurance agencies every month, at the
applicable benchmarks and rates stipulated by the government for the benefits of its employees. After the employees retire,
the local labor and social security department has obligations to pay them the basic pension. When an employee has rendered
service to the Group during an accounting period, the Group shall recognise the accrued amount according to the above
social security provisions as a liability and charged to the cost of an asset or to profit or loss in the same period.
(c) Termination benefits
When the Group terminates the employment relationship with employees before the employment contracts expire, or provides
compensation as an offer to encourage employees to accept voluntary redundancy, a provision for the termination benefits
provided is recognised in profit or loss under the conditions of both the Group has a formal plan for the termination of
employment or has made an offer to employees for voluntary redundancy, which will be implemented shortly; and the Group is
not allowed to withdraw from termination plan or redundancy offer unilaterally.
(14) Income tax
Current tax and deferred tax are recognised in profit or loss except to the extent that they relate to business
combinations and items recognised directly in equity (including other comprehensive income).
Current tax is the expected tax payable calculated at the applicable tax rate on taxable income for the year, plus any
adjustment to tax payable in respect of previous years.
At the balance sheet date, current tax assets and liabilities are offset if the Group has a legally enforceable right to
set them off and also intends either to settle on a net basis or to realize the asset and settle the liability
simultaneously.
Deferred tax assets and liabilities are recognised based on deductible temporary differences and taxable temporary
differences respectively. Temporary difference is the difference between the carrying amounts of assets and liabilities and
their tax bases. Unused tax losses and unused tax credits able to be utilised in subsequent years are treated as temporary
differences. Deferred tax assets are recognised to the extent that it is probable that future taxable income will be
available to offset the deductible temporary differences.
Temporary differences arise in a transaction, which is not a business combination, and at the time of transaction, does not
affect accounting profit or taxable profit (or unused tax losses), will not result in deferred tax. Temporary differences
arising from the initial recognition of goodwill will not result in deferred tax.
At the balance sheet date, the amounts of deferred tax recognised is measured based on the expected manner of recovery or
settlement of the carrying amount of the assets and liabilities, using tax rates that are expected to be applied in the
period when the asset is recovered or the liability is settled in accordance with tax laws.
The carrying amount of deferred tax assets is reviewed at each balance sheet date. If it is unlikely to obtain sufficient
taxable income to offset against the benefit of deferred tax asset, the carrying amount of the deferred tax assets is
written down. Any such write-down should be subsequently reversed where it becomes probable that sufficient taxable income
will be available.
At the balance sheet date, deferred tax assets and liabilities are offset if all the following conditions are met:
- 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:
- the same taxable entity; or
- different taxable entities which either to intend to settle the current tax liabilities and assets on a net basis, or to
realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of
deferred tax liabilities or assets are expected to be settled or recovered.
3 SIGNIFICANT ACCOUNTING POLICIES (Continued)
(15) Provisions
Provisions are recognised when the Group has a present obligation as a result of a contingent event, it is probable that an
outflow of economic benefits will be required to settle the obligations and a reliable estimate can be made. Where the
effect of time value of money is material, provisions are determined by discounting the expected future cash flows.
Provisions for future dismantlement costs are initially recognised based on the present value of the future costs expected
to be incurred in respect of the Group's expected dismantlement and abandonment costs at the end of related oil and gas
exploration and development activities. Any subsequent change in the present value of the estimated costs, other than the
change due to passage of time which is regarded as interest costs, is reflected as an adjustment to the provision of oil
and gas properties.
(16) Revenue recognition
Revenue is the gross inflow of economic benefits arising in the course of the Group's normal activities when the inflows
result in increase in shareholder's equity, other than increase relating to contributions from shareholders. Revenue is
recognised in profit or loss when it is probable that the economic benefits will flow to the Group, the revenue and costs
can be measured reliably and the following respective conditions are met.
(a) Revenues from sales of goods
Revenue from the sales of goods is recognised when all of the general conditions stated above and following conditions are
satisfied:
- the significant risks and rewards of ownership and title have been transferred to buyers; and
- the Group does not retain the management rights, which is normally associated with owner, on goods sold and has no
control over the goods sold.
Revenue from the sales of goods is measured at fair value of the considerations received or receivable under the sales
contract or agreement.
(b) Revenues from rendering services
The Group determines the revenue from the rendering of services according to the fair value of the received or to-be
received price of the party that receives the services as stipulated in the contract or agreement.
At the balance sheet date, when the outcome of a transaction involving the rendering of services can be estimated reliably,
revenue from rendering of services is recognised in the income statement by reference to the stage of completion of the
transaction based on the proportion of services performed to date to the total services to be performed.
When the outcome of rendering the services cannot be estimated reliably, revenues are recognised only to the extent that
the costs incurred are expected to be recoverable. If the costs of rendering of services are not expected to be
recoverable, the costs are recognised in profit or loss when incurred, and revenues are not recognised.
(c) Interest income
Interest income is recognised on a time proportion basis with reference to the principal outstanding and the applicable
effective interest rate.
(17) Government grants
Government grants are the gratuitous monetary assets or non-monetary assets that the Group receives from the government,
excluding capital injection by the government as an investor. Special funds such as investment grants allocated by the
government, if clearly defined in official documents as part of "capital reserve" are dealt with as capital contributions,
and not regarded as government grants.
Government grants are recognised when there is reasonable assurance that the grants will be received and the Group is able
to comply with the conditions attaching to them. Government grants in the form of monetary assets are recorded based on the
amount received or receivable, whereas non-monetary assets are measured at fair value.
Government grants received in relation to assets are recorded as deferred income, and recognised evenly in profit or loss
over the assets' useful lives. Government grants received in relation to revenue are recorded as deferred income, and
recognised as income in future periods as compensation when the associated future expenses or losses arise; or directly
recognised as income in the current period as compensation for past expenses or losses.
(18) Borrowing costs
Borrowing costs incurred on borrowings for the acquisition, construction or production of qualified assets are capitalised
into the cost of the related assets.
Except for the above, other borrowing costs are recognised as financial expenses in the income statement when incurred.
3 SIGNIFICANT ACCOUNTING POLICIES (Continued)
(19) Repairs and maintenance expenses
Repairs and maintenance (including overhauling expenses) expenses are recognised in profit or loss when incurred.
(20) Environmental expenditures
Environmental expenditures that relate to current ongoing operations or to conditions caused by past operations is expensed
as incurred. Liabilities related to future remediation costs are recorded when environmental assessments and/or cleanups
are probable and the costs can be reliably estimated. As facts concerning environmental contingencies become known to the
Group, the Group reassesses its position both with respect to accrued liabilities and other potential exposures.
(21) Research and development costs
Research costs and development costs that cannot meet the capitalisation criteria are recognised in profit or loss when
incurred.
(22) Operating leases
Operating lease payments are charged as expenses on a straight-line basis over the period of the respective leases.
(23) Dividends
Dividends and distributions of profits proposed in the profit appropriation plan which will be authorised and declared
after the balance sheet date, are not recognised as a liability at the balance sheet date and are separately disclosed in
the notes to the financial statements. Dividends are recognised as a liability in the period in which they are declared.
(24) Related parties
If a party has the power to control, jointly control or exercise significant influence over another party, or vice versa,
or where two or more parties are subject to common control, joint control from another party, they are considered to be
related parties. Related parties may be individuals or enterprises. Where enterprises are subject to state control but are
otherwise unrelated, they are not related parties. Related parties of the Group and the Company include, but not limited
to:
(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
Reportable segments are identified based on operating segments which are determined based on the structure of the Group's
internal organisation, management requirements and internal reporting system. An operating segment is a component of the
Group that meets the following respective conditions:
- 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.
Inter-segment revenues are measured on the basis of actual transaction price for such transactions for segment reporting,
and segment accounting policies are consistent with those for the consolidated financial statements.
4 TAXATION
Major types of tax applicable to the Group are income tax, consumption tax, resources tax, value added tax, city
construction tax, education surcharge and local education surcharge.
Consumption tax was levied based on sales quantities of taxable products, tax rate of products is presented as below:
Effective from
Products 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
Fuel oil
1,218.00
Jet fuel oil
1,495.20
Before 1 July 2017, Value-added Tax ("VAT") rate is 13% for liquefied petroleum gas, natural gas and certain agricultural
products and 17% for other products. In accordance with the "Notice Jointly Issued by the MoF and SAT on Policies of
Simplifying the VAT Rates" (Cai Shui 2017 No.37), the VAT rate of 13% has been abolished from 1 July 2017. The VAT rate
for selling or importing liquefied petroleum gas, natural gas and certain agricultural supplies, is 11%.
Pursuant to the 'Circular on the Overall Promotion of Pilot Program of Levying VAT in place of Business Tax'(Cai Shui
2016 No.36) jointly issued by the Ministry of Finance and the State Administration of Taxation, revenue from modern
service of the subsidiaries of the Group, are subject to VAT from 1 May 2016, and the applicable tax rate is 6%, while the
business tax was from 3% to 5% before then.
5 CASH AT BANK AND ON HAND
The Group
At 30 June 2017 At 31 December 2016
Original Original
currency Exchange RMB currency Exchange RMB
million rates million million rates million
Cash on hand
Renminbi 11 10
Cash at bank
Renminbi 95,329 91,855
US Dollars 2,954 6.7744 20,012 1,499 6.9370 10,406
Hong Kong Dollars 87 0.8679 76 87 0.8945 78
Others 233 75
115,661 102,424
Deposits at related parities
Renminbi 33,717 21,843
US Dollars 1,670 6.7744 11,314 2,619 6.9370 18,181
Others 130 49
45,161 40,073
Total 160,822 142,497
130
49
45,161
40,073
Total
160,822
142,497
Deposits at related parties represent deposits placed at Sinopec Finance Company Limited and Sinopec Century Bright Capital
Investment Limited. Deposits interest is calculated based on market rate.
At 30 June 2017, time deposits with financial institutions of the Group amounted to RMB 31,695 million (2016: RMB 18,029
million).
At 30 June 2017, structured deposits with financial institutions of the Group amounted to RMB 67,300 million (2016: RMB
75,000 million).
6 BILLS RECEIVABLE
Bills receivable represents mainly the bills of acceptance issued by banks for sales of goods and products.
At 30 June 2017, the Group's outstanding endorsed or discounted bills (with recourse) amounted to RMB 6,359 million (2016:
RMB 7,523 million).
7 ACCOUNTS RECEIVABLE
The Group The Company
At 30 June At 31 December At 30 June At 31 December
2017 2016 2017 2016
RMB million RMB million RMB million RMB million
Amounts due from subsidiaries - - 21,844 33,142
Amounts due from Sinopec Group Company and fellow subsidiaries 3,207 6,398 1,041 1,662
Amounts due from associates and joint ventures 4,387 4,580 1,758 2,036
Amounts due from others 43,564 39,994 3,554 1,720
51,158 50,972 28,197 38,560
Less: Allowance for doubtful accounts 598 683 153 228
Total 50,560 50,289 28,044 38,332
38,560
Less: Allowance for doubtful accounts
598
683
153
228
Total
50,560
50,289
28,044
38,332
Ageing analysis on accounts receivable is as follows:
The Group
At 30 June 2017 At 31 December 2016
Percentage Percentage
Percentage of allowance Percentage of allowance
to total to accounts to total to accounts
accounts receivable accounts receivable
Amount receivable Allowance balance Amount receivable Allowance balance
RMB million % RMB million % RMB million % RMB million %
Within one year 50,081 97.9 6 - 49,854 97.8 - -
Between one and two years 423 0.8 145 34.3 464 0.9 231 49.8
Between two and three years 70 0.1 47 67.1 225 0.4 48 21.3
Over three years 584 1.2 400 68.5 429 0.9 404 94.2
Total 51,158 100.0 598 50,972 100.0 683
400
68.5
429
0.9
404
94.2
Total
51,158
100.0
598
50,972
100.0
683
The Company
At 30 June 2017 At 31 December 2016
Percentage Percentage
Percentage of allowance Percentage of allowance
to total to accounts to total to accounts
accounts receivable accounts receivable
Amount receivable Allowance balance Amount receivable Allowance balance
RMB million % RMB million % RMB million % RMB million %
Within one year 27,721 98.3 - - 38,023 98.7 - -
Between one and two years 274 1.0 43 15.7 357 0.9 114 31.9
Between two and three years 79 0.3 6 7.6 49 0.1 10 20.4
Over three years 123 0.4 104 84.6 131 0.3 104 79.4
Total 28,197 100.0 153 38,560 100.0 228
104
84.6
131
0.3
104
79.4
Total
28,197
100.0
153
38,560
100.0
228
At 30 June 2017 and 31 December 2016, the total amounts of the top five accounts receivable of the Group are set out
below:
At 30 June At 31 December
2017 2016
Total amount (RMB million) 8,615 14,967
Percentage to the total balance of accounts receivable 16.8% 29.4%
Allowance for doubtful accounts - -
Allowance for doubtful accounts
-
-
During the six-month periods ended 30 June 2017 and 2016, the Group and the Company had no individually significant
accounts receivable been fully or substantially provided allowance for doubtful accounts.
During the six-month periods ended 30 June 2017 and 2016, the Group and the Company had no individually significant
write-off or recovery of doubtful debts which had been fully or substantially provided for in prior years.
8 OTHER RECEIVABLES
The Group The Company
At 30 June At 31 December At 30 June At 31 December
2017 2016 2017 2016
RMB million RMB million RMB million RMB million
Amounts due from subsidiaries - - 48,193 40,824
Amounts due from Sinopec Group Company and fellow subsidiaries 7,841 8,019 115 164
Amounts due from associates and joint ventures 4,721 4,841 4,004 3,986
Amounts due from others 11,917 14,085 2,405 1,793
24,479 26,945 54,717 46,767
Less: Allowance for doubtful accounts 1,328 1,349 1,088 1,124
Total 23,151 25,596 53,629 45,643
46,767
Less: Allowance for doubtful accounts
1,328
1,349
1,088
1,124
Total
23,151
25,596
53,629
45,643
Ageing analysis of other receivables is as follows:
The Group
At 30 June 2017 At 31 December 2016
Percentage Percentage
Percentage of allowance Percentage of allowance
to total to other to total to other
other receivables other receivables
Amount receivables Allowance balance Amount receivables Allowance balance
RMB million % RMB million % RMB million % RMB million %
Within one year 21,399 87.4 57 0.3 24,316 90.2 57 0.2
Between one and two years 711 3.0 30 4.2 515 2.0 32 6.2
Between two and three years 521 2.1 16 3.1 254 0.9 13 5.1
Over three years 1,848 7.5 1,225 66.3 1,860 6.9 1,247 67.0
Total 24,479 100.0 1,328 26,945 100.0 1,349
1,225
66.3
1,860
6.9
1,247
67.0
Total
24,479
100.0
1,328
26,945
100.0
1,349
The Company
At 30 June 2017 At 31 December 2016
Percentage Percentage
Percentage of allowance Percentage of allowance
to total to other to total to other
other receivables other receivables
Amount receivables Allowance balance Amount receivables Allowance balance
RMB million % RMB million % RMB million % RMB million %
Within one year 41,830 76.4 - - 34,217 73.1 - -
Between one and two years 3,279 6.0 1 - 2,740 5.9 1 -
Between two and three years 1,865 3.4 1 0.1 5,237 11.2 1 -
Over three years 7,743 14.2 1,086 14.0 4,573 9.8 1,122 24.5
Total 54,717 100.0 1,088 46,767 100.0 1,124
1,086
14.0
4,573
9.8
1,122
24.5
Total
54,717
100.0
1,088
46,767
100.0
1,124
At 30 June 2017 and 31 December 2016, the total amounts of the top five other receivables of the Group are set out below:
At 30 June At 31 December
2017 2016
Total amount (RMB million) 12,291 11,226
Ageing Within one year Within one year
Percentage to the total balance of other receivables 50.2% 41.7%
Allowance for doubtful accounts - -
41.7%
Allowance for doubtful accounts
-
-
During the six-month periods ended 30 June 2017 and 2016, the Group and the Company had no individually significant other
receivables been fully or substantially provided allowance for doubtful accounts.
During the six-month periods ended 30 June 2017 and 2016, the Group and the Company had no individually significant
write-off or recovery of doubtful debts which had been fully or substantially provided for in prior years.
9 PREPAYMENTS
The Group The Company
At 30 June At 31 December At 30 June At 31 December
2017 2016 2017 2016
RMB million RMB million RMB million RMB million
Amounts to subsidiaries - - 1,455 3,043
Amounts to Sinopec Group Company and fellow subsidiaries 173 206 31 58
Amounts to associates and joint ventures 26 24 - -
Amounts to others 3,993 3,550 440 364
4,192 3,780 1,926 3,465
Less: Allowance for doubtful accounts 38 31 11 11
Total 4,154 3,749 1,915 3,454
3,465
Less: Allowance for doubtful accounts
38
31
11
11
Total
4,154
3,749
1,915
3,454
Ageing analysis of prepayments is as follows:
The Group
At 30 June 2017 At 31 December 2016
Percentage Percentage
of allowance of allowance
Percentage to Percentage to
to total prepayments to total prepayments
Amount prepayments Allowance balance Amount prepayments Allowance balance
RMB million % RMB million % RMB million % RMB million %
Within one year 3,770 89.9 - - 3,465 91.7 - -
Between one and two years 245 5.9 8 3.3 211 5.6 12 5.7
Between two and three years 85 2.0 5 5.9 72 1.9 1 1.4
Over three years 92 2.2 25 27.2 32 0.8 18 56.3
Total 4,192 100.0 38 3,780 100.0 31
25
27.2
32
0.8
18
56.3
Total
4,192
100.0
38
3,780
100.0
31
The Company
At 30 June 2017 At 31 December 2016
Percentage Percentage
of allowance of allowance
Percentage to Percentage to
to total prepayments to total prepayments
Amount prepayments Allowance balance Amount prepayments Allowance balance
RMB million % RMB million % RMB million % RMB million %
Within one year 1,734 90.0 - - 3,306 95.4 - -
Between one and two years 92 4.8 - - 62 1.8 - -
Between two and three years 10 0.5 - - 13 0.4 - -
Over three years 90 4.7 11 12.2 84 2.4 11 13.1
Total 1,926 100.0 11 3,465 100.0 11
11
12.2
84
2.4
11
13.1
Total
1,926
100.0
11
3,465
100.0
11
At 30 June 2017 and 31 December 2016, the total amounts of the top five prepayments of the Group are set out below:
At 30 June At 31 December
2017 2016
Total amount (RMB million) 780 1,354
Percentage to the total balance of prepayments 18.6% 35.8%
18.6%
35.8%
10 INVENTORIES
The Group
At 30 June At 31 December
2017 2016
RMB million RMB million
Raw materials 75,668 75,680
Work in progress 14,475 14,141
Finished goods 74,593 65,772
Spare parts and consumables 3,385 1,838
168,121 157,431
Less: Provision for diminution in value of inventories 1,063 920
Total 167,058 156,511
Less: Provision for diminution in value of inventories
1,063
920
Total
167,058
156,511
Provision for diminution in value of inventories is mainly against finished goods and raw materials. During the six-month
periods ended 30 June 2017, the provision for diminution in value of inventories of the Group was primarily due to the
costs of finished goods of the marketing and distribution segment were higher than their net realisable value.
11 AVAILABLE-FOR-SALE FINANCIAL ASSETS
At 30 June At 31 December
2017 2016
RMB million RMB million
Equity securities, listed and at quoted market price 238 262
Other investment, unlisted and at cost 11,116 11,175
11,354 11,437
Less: Impairment loss for investments 29 29
Total 11,325 11,408
29
29
Total
11,325
11,408
Other investment, unlisted and at cost, represents the Group's interests in privately owned enterprises which are mainly
engaged in oil and natural gas activities and chemical production.
The impairment losses relating to investments for the six-month period ended 30 June 2017 amounted to nil (2016: nil).
12 LONG-TERM EQUITY INVESTMENTS
The Group
Provision for
Investments injoint ventures Investmentsin associates impairmentlosses Total
RMB million RMB million RMB million RMB million
Balance at 1 January 2017 50,696 66,838 (722) 116,812
Additions for the period 910 331 - 1,241
Share of profits less losses under the equity method 5,033 2,618 - 7,651
Change of other comprehensive income/(loss) 288 (11) - 277
under the equity method
Other equity movement under the equity method 1 - - 1
Dividends declared (2,346) (757) - (3,103)
Disposals for the period - (61) - (61)
Other movements (388) (142) - (530)
Movement of provision for impairment - - 8 8
Balance at 30 June 2017 54,194 68,816 (714) 122,296
(61)
Other movements
(388)
(142)
-
(530)
Movement of provision for impairment
-
-
8
8
Balance at 30 June 2017
54,194
68,816
(714)
122,296
The Company
Provision for
Investmentsin subsidiaries Investments injoint ventures Investmentsin associates impairmentlosses Total
RMB million RMB million RMB million RMB million RMB million
Balance at 1 January 2017 245,921 15,496 14,691 (7,657) 268,451
Additions for the period 808 230 160 - 1,198
Share of profits less losses under - 2,418 595 - 3,013
the equity method
Change of other comprehensive loss - - (11) - (11)
under the equity method
Dividends declared - (1,429) - - (1,429)
Disposals for the period (2) - - - (2)
Balance at 30 June 2017 246,727 16,715 15,435 (7,657) 271,220
-
(1,429)
Disposals for the period
(2)
-
-
-
(2)
Balance at 30 June 2017
246,727
16,715
15,435
(7,657)
271,220
For the six-month period ended 30 June 2017, the Group and the Company had no individually significant long-term investment
impairment.
Details of the Company's principal subsidiaries are set out in Note 54.
12 LONG-TERM EQUITY INVESTMENTS (Continued)
Principal joint ventures and associates of the Group are as follows:
(a) Principal joint ventures and associates
Percentage of
Name of investees Principal placeof business Register location Legalrepresentative Principal activities Registered capitalRMB million equity/votingright directlyor indirectly heldby the Company
1. Joint ventures
Fujian Refining & Petrochemical PRC PRC Gu Yuefeng Manufacturing refining oil products 14,758 50.00%
Company Limited ("FREP")
BASF-YPC Company Limited ("BASF-YPC") PRC PRC Wang Jingyi Manufacturing and distribution of 12,547 40.00%
petrochemical products
Mansarovar Energy Colombia Ltd. Colombia British Bermuda NA Crude oil and natural gas extraction 12,000 USD 50.00%
("Mansarovar")
Taihu Limited ("Taihu") Russia Cyprus NA Crude oil and natural gas extraction 25,000 USD 49.00%
Yanbu Aramco Sinopec Refining Company Ltd. Saudi Arabia Saudi Arabia NA Petroleum refining and processing 1,560 million USD 37.50%
("YASREF")
2. Associates
Sinopec Sichuan to East China Gas PRC PRC Quan Kai Operation of natural gas pipelines and 200 50.00%
Pipeline Co., Ltd. ("Pipeline Ltd") auxiliary facilities
Sinopec Finance Company Limited PRC PRC Liu Yun Provision of non-banking financial 18,000 49.00%
("Sinopec Finance") services
Zhongtian Synergetic Energy Company Limited PRC PRC Peng Yi Manufacturing of coal-chemical 16,000 38.75%
("Zhongtian Synergetic Energy") products
China Aviation Oil Supply Company Limited PRC PRC Zhou Qiang Marketing and distribution of refined 3,800 29.00%
("China Aviation Oil") petroleum products
Caspian Investments Resources Ltd. ("CIR") The Republic of Kazakhstan British Virgin Islands NA Crude oil and natural gas extraction 10,000 USD 50.00%
Liu Yun
Provision of non-banking financial
services
18,000
49.00%
Zhongtian Synergetic Energy Company Limited
("Zhongtian Synergetic Energy")
PRC
PRC
Peng Yi
Manufacturing of coal-chemical
products
16,000
38.75%
China Aviation Oil Supply Company Limited
("China Aviation Oil")
PRC
PRC
Zhou Qiang
Marketing and distribution of refined
petroleum products
3,800
29.00%
Caspian Investments Resources Ltd. ("CIR")
The Republic of Kazakhstan
British Virgin Islands
NA
Crude oil and natural gas extraction
10,000 USD
50.00%
All the joint ventures and associates above are limited companies.
12 LONG-TERM EQUITY INVESTMENTS (Continued)
(b) Major financial information of principal joint ventures
Summarised balance sheet and reconciliation to their carrying amounts in respect of the Group's principal joint ventures:
FREP BASF-YPC Mansarovar Taihu YASREF
At 30 June 2017 At 31 December 2016 At 30 June 2017 At 31 December 2016 At 30 June 2017 At 31 December 2016 At 30 June 2017 At 31 December 2016 At 30 June 2017 At 31 December 2016
RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million RMB million
Current assets
Cash and cash equivalents 11,220 8,172 2,362 1,394 373 499 1,267 1,165 2,560 1,259
Other current assets 8,254 10,269 5,019 4,852 522 569 1,572 1,616 9,115 6,826
Total current assets 19,474 18,441 7,381 6,246 895 1,068 2,839 2,781 11,675 8,085
Non-current assets 20,773 21,903 12,611 13,530 4,065 4,050 7,430 8,279 54,773 57,054
Current liabilities
Current financial liabilities (i) (1,686) (1,781) (371) (783) - - (47) (334) (1,133) (1,187)
Other current liabilities (3,229) (4,643) (2,220) (2,107) (351) (599) (1,524) (1,616) (9,656) (6,466)
Total current liabilities (4,915) (6,424) (2,591) (2,890) (351) (599) (1,571) (1,950) (10,789) (7,653)
Non-current liabilities
Non-current financial liabilities (ii) (18,521) (19,985) (1,174) (1,492) - - (54) (49) (41,361) (43,028)
Other non-current liabilities (237) (252) (10) (10) (1,485) (895) (1,125) (2,130) (952) (1,004)
Total non-current liabilities (18,758) (20,237) (1,184) (1,502) (1,485) (895) (1,179) (2,179) (42,313) (44,032)
Net assets 16,574 13,683 16,217 15,384 3,124 3,624 7,519 6,931 13,346 13,454
- More to follow, for following part double click ID:nRSc0740PgRecent news on China Petroleum & Chemical
See all newsREG - Official List - Removal - China Petroleum & Chemical Corporation
AnnouncementREG - Stock Exch Notice China Pet &Chem Corp - Cancellation - China Petroleum & Chemical Corp
AnnouncementREG - China Pet &Chem Corp - 3rd Quarter Results
AnnouncementREG - China Pet &Chem Corp - Statement re Intention to Delist ADSs from the LSE
AnnouncementREG - China Pet &Chem Corp - Half-year Report
Announcement