China Petroleum & Chemical Corp 6-K, filed Oct 30, 2020

China Petroleum & Chemical Corp (SNPMF)

6-K 2020-10-30 For: 2020-10-28

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Added on April 06, 2026

About this 6-K

China Petroleum & Chemical Corp filed this 6-K on October 30, 2020.

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	By Order of the Board
	China Petroleum & Chemical Corporation
	Huang Wensheng
	Vice President and Secretary to the Board of Directors

Items	As of 30 September 2020	As of 31 December 2019	Changes from the end of last year(%)
Total assets	1,799,388	1,755,071	2.5
Total equity attributable to equity shareholders of the Company	729,179	739,169	(1.4)

Items	Nine-month period ended 30 September		Changes over the same period of the preceding year (%)
Items	2020	2019	Changes over the same period of the preceding year (%)
Net cash flow from operating activities	83,639	81,398	2.8
Operating income	1,554,617	2,233,305	(30.4)
Net profit attributable to equity shareholders of the Company	23,507	43,281	(45.7)
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses	(10,257)	41,546	-
Weighted average return on net assets (%)	3.18	5.93	(2.75) percentage points
Basic earnings per share (RMB)	0.194	0.357	(45.7)
Diluted earnings per share (RMB)	0.194	0.357	(45.7)

Extraordinary items	Third Quarter of 2020 (gain)/loss RMB million	Nine-month period ended 30 September 2020 (gain)/loss RMB million
Net gain on disposal of non-current assets	(480)	(569)
Donations	134	233
Government grants	(2,074)	(4,768)
Gains on holding and disposal of various investments	(38,675)	(38,717)
Other extraordinary income and expenses, net	365	799
Subtotal	(40,730)	(43,022)
Tax effect	6,005	6,671
Total	(34,725)	(36,351)
Attributable to:
Equity shareholders of the Company	(32,242)	(33,764)
Minority interests	(2,483)	(2,587)

Items	As of 30 September 2020	As of 31 December 2019	Changes from the end of the last year (%)
Total assets	1,799,388	1,755,071	2.5
Total equity attributable to shareholders of the Company	728,198	738,150	(1.3)

Total number of shareholders at the end of the reporting period	Total number of shareholders was 571,928, including 566,153 holders of domestic A shares and 5,775 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	25,513,438,600	21.07	Unknown	H share
中国证券金融股份有限公司	2,609,312,057	2.16	0	A share
中国人寿保险股份有限公司－分红－个人分红－005L－FH002沪	794,572,268	0.66	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	789,500,381	0.65	0	A share
香港中央结算有限公司	513,111,570	0.42	0	A share
中央汇金资产管理有限责任公司	322,037,900	0.27	0	A share
中国工商银行－上证50交易型开放式指数证券投资基金	96,597,458	0.08	0	A share
东吴证券股份有限公司	53,088,400	0.04	0	A share
朱有芹	47,604,683	0.04	0	A share

Exploration and Production	Unit	Nine-month period ended 30 September		Changes
Exploration and Production	Unit	2020	2019	(%)
Oil and gas production	million boe	339.39	341.74	(0.7)
Crude oil production	million barrels	210.65	212.78	(1.0)

Refining	Unit	Nine-month period ended 30 September		Changes (%)
Refining	Unit	2020	2019	Changes (%)
Refinery throughput	million tonnes	174.46	186.26	(6.3)
Gasoline, diesel and kerosene production	million tonnes	105.19	119.54	(12.0)
Gasoline	million tonnes	42.46	47.20	(10.0)
Diesel	million tonnes	47.86	49.01	(2.3)
Kerosene	million tonnes	14.87	23.33	(36.3)
Light chemical feedstock production	million tonnes	29.54	30.05	(1.7)
Light product yield	%	74.63	76.44	(1.81) percentage points
Refining yield	%	94.89	94.99	(0.10) percentage points

Marketing and Distribution	Unit	Nine-month period ended 30 September		Changes (%)
Marketing and Distribution	Unit	2020	2019	Changes (%)
Total sales volume of refined oil products	million tonnes	162.25	192.42	(15.7)
Total domestic sales volume of refined oil products	million tonnes	123.19	139.25	(11.5)
Retail	million tonnes	83.06	91.80	(9.5)
Direct sales & Distribution	million tonnes	40.13	47.45	(15.4)
Annualised average throughput per station	tonnes/station	3,605	3,991	(9.7)

Chemicals	Unit	Nine-month period ended 30 September		Changes (%)
Chemicals	Unit	2020	2019	Changes (%)
Ethylene	thousand tonnes	8,850	9,295	(4.8)
Synthetic resin	thousand tonnes	12,773	12,749	0.2
Monomers and polymers for synthetic fibre	thousand tonnes	6,711	7,511	(10.7)
Synthetic fibre	thousand tonnes	935	968	(3.4)
Synthetic rubber	thousand tonnes	790	794	(0.5)

Items of Consolidated Balance Sheet	As of 30 September 2020	As of 31 December 2019	Increase/(Decrease)		Main reasons for changes
	As of 30 September 2020	As of 31 December 2019	Amount	Percentage
	RMB million	RMB million	RMB million	（%）
Financial assets held for trading	1,427	3,319	(1,892)	(57)	Receipt of the structured deposits at maturity
Derivative financial assets	7,875	837	7,038	841	Changes of fair value loss and profit position of derivative hedging financial instruments due to fluctuation of crude oil price
Derivative financial liabilities	13,580	2,729	10,851	398
Prepayments	7,474	5,066	2,408	48	Increase in prepayments for equipment
Other current assets	19,762	28,669	(8,907)	(31)	Decrease of undeducted value-added tax balance
Bills payable	15,681	11,834	3,847	33	Increase in bills payable settlement scale
Taxes payable	42,046	69,339	(27,293)	(39)	Due to the time difference of tax payment
Debentures payable	38,849	19,157	19,692	103	Due to the new issuance of medium-term notes
Other comprehensive income	(3,075)	(321)	(2,754)	-	Due to difference of foreign currency statement convertion affected by changes in foreign exchange rate
Specific reserve	2,658	1,741	917	53	The provision of safety production fund

Items of Consolidated Income Statement	Nine-month period ended 30 September		Increase/(Decrease)		Main reasons for changes
	2020	2019	Amount	Percentage
	RMB Million	RMB Million	RMB Million	（%）
Operating income	1,554,617	2,233,305	(678,688)	(30)	Decrease of sales volume prices
Operating cost	1,268,329	1,881,083	(612,754)	(33)	Decrease of sales volume prices
Investment income	42,051	6,475	35,576	549	Influence of oil and gas pipeline transaction
Gains/(losses) from changes in fair value	1,738	(1,426)	3,164	-	Increase in fair value profit on derivative financial instruments not qualified as hedging
Impairment losses	(11,415)	(91)	(11,324)	-	Increase of inventory impairment
Income tax expenses	6,012	13,868	(7,856)	(57)	Decrease of profits

Items of consolidated cash flow statement	Nine-month period ended 30 September		Increase/(Decrease)		Main reasons for changes
	2020	2019	Amount	Percentage
	RMB million	RMB million	RMB million	（%）
Other cash received relating to operational activities	156,475	102,241	54,234	53	Changes of margin deposit of financial derivative business
Other cash paid relating to operational activities	(180,841)	(131,492)	(49,349)	-	Changes of margin deposit of financial derivative business
Cash received from returns on investments	7,962	19,455	(11,493)	(59)	Changes of structured deposits
Cash paid for acquisition of investments	(7,407)	(14,296)	6,889	-	Changes of structured deposits
Other cash received from investing activities	41,758	67,954	(26,196)	(39)	Decrease in value of certificate of deposit, over three months, expired and recovered
Cash received from capital contributions	3,395	2,222	1,173	53	Increase in investment of minority shareholders
Cash paid for dividends, profits distribution or interest	(31,000)	(55,447)	24,447	-	Special dividend in 2020 has not been paid yet in the reporting period.

Items	At 30 September 2020	At 31 December 2019
Current assets:
Cash at bank and on hand	179,945	127,927
Financial assets held for trading	1,427	3,319
Derivative financial assets	7,875	837
Accounts receivable	43,919	54,865
Receivables financing	10,040	8,622
Prepayments	7,474	5,066
Other receivables	107,488	24,109
Inventories	173,051	192,442
Other current assets	19,762	28,669
Total current assets	550,981	445,856
Non-current assets:
Long-term equity investments	190,473	152,204
Other equity instrument investments	1,519	1,521
Fixed assets	553,928	622,423
Construction in progress	141,068	173,482
Right-of-use assets	190,807	198,051
Intangible assets	109,978	108,956
Goodwill	8,679	8,697
Long-term deferred expenses	8,970	8,930
Deferred tax assets	24,065	17,616
Other non-current assets	18,920	17,335
Total non-current assets	1,248,407	1,309,215
Total assets	1,799,388	1,755,071
Current liability:
Short-term loans	39,872	31,196
Derivative financial liabilities	13,580	2,729
Bills payable	15,681	11,834
Accounts payable	158,335	187,958
Contract liabilities	136,947	126,735
Employee benefits payable	14,129	4,769
Taxes payable	42,046	69,339
Other payables	95,033	72,324
Non-current liabilities due within one year	59,223	69,490
Other current liabilities	26,793	-

Total current liabilities	601,639	576,374
Non-current liabilities:
Long-term loans	43,015	39,625
Debentures payable	38,849	19,157
Lease liabilities	173,945	177,674
Provisions	44,086	43,163
Deferred tax liabilities	7,880	6,809
Other non-current liabilities	20,414	15,364
Total non-current liabilities	328,189	301,792
Total liabilities	929,828	878,166
Shareholders’ equity:
Share capital	121,071	121,071
Capital reserve	121,946	122,127
Other comprehensive income	(3,075)	(321)
Specific reserve	2,658	1,741
Surplus reserves	207,423	207,423
Retained earnings	279,156	287,128
Total equity attributable to shareholders of the Company	729,179	739,169
Minority interests	140,381	137,736
Total shareholders’ equity	869,560	876,905
Total liabilities and shareholders’ equity	1,799,388	1,755,071

	By Order of the Board
	Zhang Yuzhuo
	Chairman
	28 October, 2020

Zhang Yuzhuo	Ma Yongsheng	Shou Donghua
Chairman	President	Chief Financial Officer

Provisions	35,650	34,514
Other non-current liabilities	4,575	4,471
Total non-current liabilities	206,955	166,448
Total liabilities	570,111	493,653
Shareholders’ equity：
Share capital	121,071	121,071
Capital reserve	68,838	68,841
Other comprehensive income	(1,451)	1,181
Specific reserve	1,411	949
Surplus reserves	207,423	207,423
Retained earnings	109,033	130,645
Total shareholders’ equity	506,325	530,110
Total liabilities and shareholders’ equity	1,076,436	1,023,763

Items		Three-month period ended 30 September 2020	Three-month period ended 30 September 2019	Nine-month period ended 30 September 2020	Nine-month period ended 30 September 2019
I. Operating income		520,371	734,309	1,554,617	2,233,305
II. Total Operating costs		494,951	718,620	1,553,444	2,172,237
Including:	Operating costs	392,164	617,990	1,268,329	1,881,083
	Taxes and surcharges	64,034	61,685	171,877	181,931
	Selling and distribution expenses	15,906	16,021	45,389	45,761
	General and administrative expenses	15,922	16,079	46,943	43,118
	Research and development costs	3,147	1,942	7,448	5,931
	Financial expenses	2,134	2,627	7,349	7,790
	Exploration expenses, including dry holes	1,644	2,276	6,109	6,623
Add:	Other income	1,986	1,074	4,448	2,674
	Investment income	36,420	3,701	42,051	6,475
	Gains/(losses) from changes in fair value	1,628	(1,120)	1,738	(1,426)
	Credit impairment losses	(741)	6	(842)	(7)
	Impairment losses	252	(9)	(11,415)	(91)
	Asset disposal gains/(losses)	480	5	569	(169)
III. Operating profit		65,445	19,346	37,722	68,524
Add:	Non-operating income	497	366	1,180	1,051
Less:	Non-operating expenses	904	476	1,876	1,243
IV. Profit before taxation		65,038	19,236	37,026	68,332
Less:	Income tax expense	11,814	3,728	6,012	13,868
V. Net profit		53,224	15,508	31,014	54,464
Classification by going concern:
	(i) Continuous operating net profit	53,224	15,508	31,014	54,464
	(ii) Termination of net profit	-	-	-	-
Classification by ownership:
	(i)Equity shareholders of the Company	46,389	11,943	23,507	43,281

	(ii) Minority interests	6,835	3,565	7,507	11,183
VI. Other comprehensive income		(978)	1,663	(3,390)	6,231
Items that may not be reclassified subsequently to profit or loss:		(1)	(2)	(31)	(22)
Changes in fair value of other equity instrument investments		(1)	(2)	(31)	(22)
Items that may be reclassified subsequently to profit or loss:		(977)	1,665	(3,359)	6,253
Other comprehensive loss that can be converted into profit or loss under the equity method		(485)	(98)	(2,266)	(607)
Cash flow hedges		2,000	(248)	340	4,543
Foreign currency translation differences		(2,492)	2,011	(1,433)	2,317
VII. Total comprehensive income		52,246	17,171	27,624	60,695
Attributable to:
	Equity shareholders of the Company	45,834	12,926	20,739	48,842
	Minority interests	6,412	4,245	6,885	11,853
VIII. Earnings per share:
	(i) Basic earnings per share (RMB/Share)	0.383	0.099	0.194	0.357
	(ii) Diluted earnings per share (RMB/Share)	0.383	0.099	0.194	0.357

V. Other comprehensive income	51	113	(2,634)	899
Items that may be reclassified subsequently to profit or loss	51	113	(2,634)	899
Other comprehensive income that can be converted into profit or loss under the equity method	(210)	112	(304)	139
Cash flow hedges	261	1	(2,330)	760
VI. Total comprehensive income	29,475	9,499	7,233	22,792

Cash received from borrowings	489,892	469,696
Other cash received relating to financing activities	752	322
Sub-total of cash inflows	494,039	472,240
Cash repayments of borrowings	(405,196)	(441,579)
Cash paid for dividends, profits distribution or interest	(31,000)	(55,447)
Including: Subsidiaries’ cash payments for distribution of dividends or profits to minority shareholders	(3,482)	(4,659)
Other cash paid relating to financing activities	(10,987)	(9,245)
Sub-total of cash outflows	(447,183)	(506,271)
Net cash flow from financing activities	46,856	(34,031)
IV. Effects of changes in foreign exchange rate	(458)	313
V. Net increase/(decrease) in cash and cash equivalents	26,773	(23,072)
Add：Initial balance of cash and cash equivalents	60,313	111,922
VI. Ending balance of cash and cash equivalents	87,086	88,850

Items	Nine-month period ended 30 September 2020	Nine-month period ended 30 September 2019
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services	628,381	889,797
Refund of taxes and levies	2,428	947
Other cash received relating to operating activities	3,458	5,062
Sub-total of cash inflows	634,267	895,806
Cash paid for goods and services	(408,733)	(652,604)
Cash paid to and for employees	(26,693)	(26,693)
Payments of taxes and levies	(138,726)	(186,228)
Other cash paid relating to operating activities	(11,772)	(6,888)
Sub-total of cash outflows	(585,924)	(872,413)
Net cash flow from operating activities	48,343	23,393
II. Cash flows from investing activities:
Cash received from disposal of investments	12,587	16,650
Cash received from returns on investments	14,860	16,510
Net cash received from disposal of fixed assets, intangible assets and other long-term assets	6,558	18
Other cash received relating to investing activities	99,053	22,382
Sub-total of cash inflows	133,058	55,560
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets	(35,223)	(47,047)
Cash paid for acquisition of investments	(15,484)	(8,338)
Other cash paid relating to investing activities	(118,376)	(36,900)
Sub-total of cash outflows	(169,083)	(92,285)
Net cash flow from investing activities	(36,025)	(36,725)
III. Cash flows from financing activities:
Cash received from borrowings	194,538	91,665
Other cash received relating to financing activities	164,714	69,218
Sub-total of cash inflows	359,252	160,883
Cash repayments of borrowings	(140,761)	(67,587)
Cash paid for dividends or interest	(26,661)	(47,149)
Other cash paid relating to financing activities	(186,971)	(58,570)
Sub-total of cash outflows	(354,393)	(173,306)

Net cash flow from financing activities	4,859	(12,423)
IV. Effects of changes in foreign exchange rate	(2)	-
V. Net increase/(decrease) in cash and cash equivalents	17,175	(25,755)
Add：Initial balance of cash and cash equivalents	38,616	59,120
VI. Ending balance of cash and cash equivalents	55,791	33,365

Consolidated operating income	1,554,617	2,233,305
Operating (loss)/ profit
By segment
Exploration and production	(9,726)	7,295
Refining	(15,884)	21,445
Marketing and distribution	14,634	23,139
Chemicals	6,503	16,059
Corporate and others	(4,378)	1,066
Elimination	5,116	(244)
Total segment operating (loss)/profit	(3,735)	68,760
Investment income
Exploration and production	14,413	2,398
Refining	13,251	(767)
Marketing and distribution	11,268	2,291
Chemicals	(34)	3,227
Corporate and others	3,153	(674)
Total segment investment income	42,051	6,475
Financial expenses	(7,349)	(7,790)
Gain/(loss) from changes in fair value	1,738	(1,426)
Asset disposal gains/(losses)	569	(169)
Other income	4,448	2,674
Operating profit	37,722	68,524
Add: Non-operating income	1,180	1,051
Less: Non-operating expenses	1,876	1,243
Profit before taxation	37,026	68,332

	As at 31 December		As at 31 December		As at 31 March
	2018		2019		2020
	(RMB100 million)

Total assets		37.85		42.50		42.78
Net assets		5.37		4.96		3.09

	For the year ended		For the year ended		Three-month period ended
	31 December 2018		31 December 2019		31 March 2020

Revenue		109.16		96.73		20.72
Profit before taxation		0.30		0.005		-1.74
Net profit		-0.65		-0.98		-1.95

“Articles of Baling Petrochemical”		the Articles of Association of Sinopec Baling Petrochemical Company Limited

“Assets Company Baling Branch”		Baling Petrochemical Branch of Sinopec Group Asset Management Co., Ltd.

“associate(s)”		has the meaning ascribed thereto under the Listing Rules

“Baling Petrochemical”		Sinopec Baling Petrochemical Company Limited

“Board”		the board of directors of the Company

“Capital Increase”		the capital increase of approximately RMB6.284 billion in Baling Petrochemical by the Company and Assets Company in accordance with the terms and conditions of Capital Increase Agreement, upon the completion of which, the Company and Assets Company will hold 55% and 45% of equity interest in Baling Petrochemical, respectively

“Capital Increase Agreement”		the agreement to be entered into between the Company and Assets Company in relation to the capital increase in Baling Petrochemical, which was considered and approved by the Board

“Capital Increase Assets”		the Capital Increase Assets of Sinopec Corp. and the Capital Increase Assets of Assets Company

“Capital Increase Assets of Assets Company”		the operating assets and liability of Assets Company Baling Branch with the appraised value of approximately RMB2.828 billion using asset-based approach

“Capital Increase Assets of Sinopec Corp.”		the net assets of Sinopec Corp. Baling Branch with the appraised value of approximately RMB1.693 billion using asset-based approach

“China Petrochemical Corporation”		China Petrochemical Corporation

“Closing Date”		1 November 2020

“Company” or “Sinopec Corp.”		China Petroleum & Chemical Corporation

“Completion”		the completion of the Capital Increase in accordance with the Capital Increase Agreement

“connected person(s)”		has the meaning ascribed thereto under the Listing Rules

“INED(s)”		the independent non-executive Directors of the Company

“Listing Rules”		the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

“PRC”		the People’s Republic of China

“RMB”		Renminbi, the lawful currency of the PRC

“Sinopec Corp. Baling Branch”		China Petroleum & Chemical Corporation Baling Branch Company

“Stock Exchange”		The Stock Exchange of Hong Kong Limited

“subsidiary(ies)”		has the meaning ascribed thereto under the Listing Rules

“Valuation Date”		31 March 2020

“Valuation Report of Capital Increase Assets of Assets Company”		the Asset Valuation Report for the Operating Assets and Liabilities of Baling Petrochemical Branch of Sinopec Group Asset Management Co., Ltd. regarding the Proposed Capital Increase in Sinopec Baling Petrochemical Company Limited by Baling Petrochemical Branch of Sinopec Group Asset Management Co., Ltd. using the Operating Assets and Liabilities prepared by China Enterprise Appraisals Co., Ltd.

“Valuation Report of Capital Increase Assets of Sinopec Corp.”		the Asset Valuation Report regarding the Proposed Capital Increase in Sinopec Baling Petrochemical Company Limited by China Petroleum & Chemical Corporation Using the Net Assets of China Petroleum & Chemical Corporation Baling Branch Company prepared by Beijing Guorongxinghua Assets Appraisal Co, LTD.

“%”		Percent.