3rd Quarter Results

Source: RNS
RNS Number : 4644D
China Petroleum & Chemical Corp
28 October 2020
 

 

 

 

 

China Petroleum & Chemical Corporation

The Third Quarterly Report for 2020

 

 

 

 

 

 

28 October 2020

 

 

 

1 Important notice

 

1.1 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 that there are no false representations, misleading statements or material omissions contained in this report and severally and jointly accept full responsibility for the authenticity, accuracy and completeness of the information contained in this report.

 

1.2 The third quarterly report for 2020 was approved at the 18th meeting of the Seventh Session of the Board of Directors of Sinopec Corp. All directors attended this meeting.

 

1.3 Mr. Zhang Yuzhuo, Chairman, Mr. Ma Yongsheng, President, Ms. Shou Donghua, Chief Financial Officer and Head of the Corporate Accounting Department of Sinopec Corp. warrant the authenticity, accuracy and completeness of the financial statements contained in this quarterly report.

 

1.4 The financial statements in this quarterly report were not audited.

 

 

 

 

 

 

2 Basic information of Sinopec Corp.

2.1 Principal financial data and indicators

2.1.1 Principal financial data and indicators prepared in accordance with China Accounting Standards for Business Enterprises (CASs)

RMB million

 

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)

 

RMB million

 

Items

Nine-month period ended 30 September

Changes over the same period of the preceding year (%)

 

2020

2019

 

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)

 

RMB million

 

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)

             

 

2.1.2 Principal financial data and indicators prepared in accordance with International Financial Reporting Standards (IFRS)

RMB million

 

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)

 

 

RMB million

 

Items

Nine-month period ended 30 September

Changes over the same period of the preceding year (%)

2020

2019

Net cash generated from operating activities

83,639

81,398

2.8

Operating profit

5,028

68,340

(92.6)

Net profit attributable to shareholders of the Company

24,459

44,226

(44.7)

Basic earnings per share (RMB)

0.202

0.365

(44.7)

Diluted earnings per share (RMB)

0.202

0.365

(44.7)

Return on net assets (%)

3.36

6.10

(2.74) percentage points

 

 

 

2.2 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 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-005LFH002

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-005LCT001

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

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

Note   Sinopec Century Bright Capital Investment Limited, overseas wholly-owned subsidiary of China Petrochemical Corporation, holds 553,150,000 H shares, accounting for 0.46% of the total share capital of Sinopec Corp. Such shareholdings are included in the total number of shares held by HKSCC (Nominees) Limited.

 

Statement on the connected relationship or acting in concert among the aforementioned shareholders:

 

Apart from中国人寿保险股份有限公司-分红-个人分红-005LFH002 and 中国人寿保险股份有限公司-传统-普通保险产品-005LCT001 which were both administrated by 中国人寿保险股份有限公司, Sinopec Corp. is not aware of any connected relationship or acting in concert among or between the above-mentioned shareholders.

2.3 Review of operating results

 

In the first three quarters of 2020, due to the worldwide spread of COVID-19, global economy was depressed and the global market was shrinking. The growth of China's economy turned positive, with GDP up by 0.7% year-on-year in the first three quarters, among which up by 4.9% in the third quarter, indicating a good continuous recovery momentum. In the first three quarters of 2020, the average spot price of Platts Brent was USD 42.5 per barrel, down by 34.4% year on year. Domestic demand for natural gas and chemical products maintained growth and demand for refined oil products recovered steadily quarter on quarter.

 

Confronted with the severe and complex market situation, the Company adhered to the principles of "focusing on main challenges, system optimization, bottom-line risks prevention and control and seizing opportunities out of crisis" and vigorously adjusted structure, expanded market, reduced inventory and tapped potential. On the basis of favorable results of "100-day campaign to tide over difficulties and improve performances", the Company launched a higher standard campaign of continuously tiding over difficulties and improving performances, seized the opportunity of domestic market demand recovery and made all-out efforts to tide over the difficulties of pandemic along with low crude oil price and achieved significant improvement of operation and profitability. The Company completed the transaction of oil and gas pipeline assets on 30 September 2020 and the contribution of asset appreciation to earnings was booked in the third quarter.

 

In accordance with CASs, net profit attributable to equity shareholders of the Company was RMB 23.507 billion, among which the net profit attributable to equity shareholders of the Company in the third quarter was RMB 46.389 billion. In accordance with IFRS, net profit attributable to equity shareholders of the Company was RMB 24.459 billion, among which the net profit attributable to equity shareholders of the Company in the third quarter was RMB 46.184 billion.

 

Exploration and Production: Under low crude oil price environment, the Company insisted on high-quality exploration, focused on profit-driven development, accelerated capacity building and proactively expanded market and sales of natural gas and further deepened the maintaining oil production, increasing gas output and reducing cost. In exploration, new discoveries were made in Tarim Basin, Jiyang Depression and Sichuan Basin, etc. In oil development, we increased the application of technologies to lower cost and optimized projects implementation plan, which helped to further decrease our cost. In natural gas development, we accelerated capacity building in West Sichuan, Dongsheng and Weirong gas fields, and continuously progressed with the development of Fuling, Puguang and Yuanba gas fields. In the first three quarters, domestic crude production kept stable and sales of natural gas increased by 9.86% year on year, realizing a continued growth in market share of natural gas. The exploration and production segment realised earnings before interest and taxes (EBIT) of RMB 13.16 billion in the third quarter. 

 

Exploration and Production

Unit

Nine-month period ended 30 September

Changes

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)

China

million barrels

186.69

186.69

0.0

Overseas

million barrels

23.96

26.09

(8.2)

Natural gas production

billion cubic feet

772.14

773.41

(0.2)

Realised crude oil price

USD/barrel

38.24

58.82

(35.0)

Realised natural gas price

USD/thousand cubic feet

5.32

6.19

(14.1)

Conversion: For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil,

1 tonne = 7.21 barrels. For production of natural gas, 1 cubic meter = 35.31 cubic feet.

 

Refining: With the market oriented approach, the Company took advantage of the recovery of domestic demand in the third quarter, further integrated production and marketing, maintained high utilization rates of facilities and maximized the profitability of value chain. We dynamically adjusted product mix, increased the supply of chemical feedstock and increased production of asphalt, lubricant and other marketable products. We optimized crude oil procurement and decreased cost. In the third quarter, refinery throughput was 63.51 million tonnes, up by 11.0% quarter on quarter and 1.9% year on year and 38.01 million tonnes of refined oil products were produced, representing a quarter-on-quarter increase of 11.2%, and 10.53 million tonnes of light chemical feedstock were produced, representing a quarter-on quarter increase of 15.0% and a year-on-year increase of 5.3%. The refining segment realized EBIT of RMB 31.55 billion in the third quarter.

 

Refining

Unit

Nine-month period ended 30 September

Changes

(%)

2020

2019

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

Note : Including 100% production of domestic joint ventures.

Marketing and Distribution: Facing fierce market competition, the Company strengthened market analysis, leveraged the advantages of integration, balanced volume and profit, expanded sales and increased profit, and achieved continuous recovery in sales volume. We innovated marketing model by introducing the "one click refueling", etc., promoted the integration of online and offline business, created a new service model of reducing physical contact while refueling and shopping in a more efficient and convenient way to constantly improve our services. In the third quarter, domestic sales volume of refined oil products was 45.44 million tonnes, up by 0.4% quarter on quarter. The marketing and distribution segment realized EBIT of RMB 18.24 billion in the third quarter.

 

Marketing and Distribution

Unit

Nine-month period ended 30 September

Changes

(%)

2020

2019

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)

Note: The total sales volume of refined oil products includes the amount of trading volume.

 

Chemicals: The Company fine-tuned chemical feedstock mix to further lower costs, optimized operation and product slate, increased the ratio of high value-added products with the ratio of new and specialty synthetic resin reaching 68.6% and ratio of high value-added synthetic rubber reaching 31.3%. Construction of key projects was accelerated. In the third quarter, ethylene output was 3.07 million tonnes, up by 11.8% quarter-on-quarter. We accelerated expanding high-end products market, such as medical resin, antibacterial materials and automotive material etc. and optimized layout and logistics operation to enhance profitability of business chain. In the third quarter, the total chemical sales volume was 22.33 million tonnes, up by 0.86% quarter on quarter. The chemical segment realized EBIT of RMB 4.22 billion in the third quarter.

 

Chemicals

Unit

Nine-month period ended 30 September

Changes

(%)

2020

2019

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)

Note : Including 100% production of domestic joint ventures.

 

Capital expenditure: Focusing on quality and profitability of investment, the Company continuously optimised our investment projects. In the first three quarters, total capital expenditures were RMB 71.858 billion. Capital expenditures for the exploration and production segment were RMB 32.172 billion, mainly for capacity building in Shengli, Northwest, West Sichuan and Dongsheng oil and gas projects. Capital expenditures for the refining segment were RMB 13.819 billion, mainly for Zhongke project, Zhenhai, Tianjin, Maoming and Luoyang refining upgrading projects. Capital expenditures for the marketing and distribution segment were RMB 13.768 billion, mainly for construction of service stations, oil products depots and non-fuel business development. Capital expenditures for the chemicals segment were RMB 10.458 billion, mainly for Zhongke, Zhenhai, and Gulei, ethylene revamping for Sinopec-SK and Jiujiang aromatics projects, and melt blown fabrics projects. Capital expenditures for corporate and others were RMB 1.641 billion, mainly for R&D facilities and IT application projects.
 

3 Significant events

3.1 Significant changes in major items contained in the consolidated financial statements prepared in accordance with CASs and the reasons for such changes.

 

Items of Consolidated Balance Sheet

As of 30 September

 2020

As of 31 December

2019 

Increase/(Decrease)

Main reasons for changes

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)

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)

-

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

-

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.

 

 

3.2 Sinopec Corp. and its subsidiaries transferred their equity interests in relevant companies, oil and gas pipeline assets and other facilities to China Oil & Gas Pipeline Network Corporation (" PipeChina")  in exchange for newly issued shares of and cash paid by PipeChina as consideration. The ownership, obligations, responsibilities and risks of the relevant target assets was transferred to PipeChina from 24:00 on 30 September 2020. For details, please refer to the announcement of "Major Transaction and Discloseable Transaction Announcement-Disposal of Assets and External Investment" (announcement No. 2020-24) published by Sinopec Corp. on 24 July 2020 and "Announcement on Disposal of Pipeline Inventory"(announcement No.2020-39) and "Announcement on Closing of Disposal of Assets and External Investment"(announcement No.2020-39) in China Securities Journal, Shanghai Securities News and, Securities Times and on the website of Shanghai Stock Exchange.

3.3 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

Zhang Yuzhuo

Chairman

28 October, 2020

 

 

 

 

4 Appendix

4.1 Quarterly financial statements prepared under China Accounting Standards for Business Enterprises (CASs)

Consolidated Balance Sheet

as at 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

 

Units: million Currency: RMB Type: unaudited

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

 

Zhang Yuzhuo                    Ma Yongsheng

Shou Donghua

 

Chairman                             President                                        Chief Financial Officer

 

 

       

 

 

 

 

Balance Sheet

as at 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

 

Units: million  Currency: RMB  Type: unaudited

Items

At 30 September 2020

At 31 December 2019

Current assets

 

 

    Cash at bank and on hand

97,425

54,072

    Derivative financial assets

-

940

  Accounts receivable

16,971

21,544

  Receivables financing

360

207

  Prepayments

2,850

2,665

  Other receivables

73,717

78,872

  Inventories

52,390

49,116

  Other current assets

12,522

25,149

Total current assets

256,235

232,565

Non-current assets

 

 

  Long-term equity investments

335,272

304,687

  Other equity instrument investments

427

395

  Fixed assets

283,270

291,547

  Construction in progress

59,548

60,493

  Right-of-use assets

109,882

112,832

  Intangible assets

8,620

8,809

  Long-term deferred expenses

2,509

2,630

  Deferred tax assets

12,441

7,315

  Other non-current assets

8,232

2,490

Total non-current assets

820,201

791,198

Total assets

1,076,436

1,023,763

Current liabilities

 

 

Short-term loans

27,649

19,919

  Derivative financial liabilities

-

157

  Bills payable

6,625

4,766

  Accounts payable

70,621

75,352

  Contract liabilities

4,955

5,112

  Employee benefits payable

7,415

1,214

  Taxes payable

23,921

43,025

  Other payables

161,412

118,064

  Non-current liabilities due within one year

49,045

59,596

Other current liabilities

11,513

-

Total current liabilities

363,156

327,205

Non-current liabilities

 

 

Long-term loans

33,002

12,680

  Debentures payable

26,976

7,000

  Lease liabilities

106,752

107,783

  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

 

Zhang Yuzhuo                  Ma Yongsheng                      Shou Donghua     

Chairman                        President                               Chief Financial Officer

 

 

 

Consolidated Income Statement

for the nine-month period ended 30 September 2020

 

Prepared by: China Petroleum & Chemical Corporation

 

Units: million   Currency: RMB   Type: unaudited

 

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

 

Zhang Yuzhuo                  Ma Yongsheng                      Shou Donghua     

 

Chairman                        President                               Chief Financial Officer

 

 

           

 

 

 

 

Income Statement

for the nine-month period ended 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

 

 

Units: million   Currency: RMB   Type: unaudited

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

199,451

254,297

558,026

766,632

 Less: Operating costs

 142,631

201,259

 430,434

605,829

Taxes and surcharges

 40,363

41,484

 110,502

123,434

Selling and distribution expenses

 794

942

 2,269

2,492

General and administrative expenses

 6,675

7,151

 21,681

18,318

Research and development costs

 2,918

1,789

 6,968

5,516

Financial expenses

 2,167

1,947

 6,701

5,860

Exploration expenses,

including dry holes

 1,466

2,138

 5,176

6,159

 Add: Other income

 1,264

564

 3,158

1,455

Investment income

 30,272

5,599

 36,871

16,404

(Losses)/gains from changes in

fair value

 (2)

-

 358

20

Credit impairment losses

 21

10

 51

18

Impairment losses

 101

(2)

 (7,993)

(1)

Asset disposal gains

 16

6,963

 29

6,984

II. Operating profit

 34,109

10,721

 6,769

23,904

Add: Non-operating income

 100

86

 203

197

Less: Non-operating expenses

 336

258

 780

535

III. Profit before taxation

 33,873

10,549

 6,192

23,566

Less: Income tax (credit)/expense

 4,449

1,163

 (3,675)

1,673

IV. Net profit

 29,424

9,386

 9,867

21,893

(i) Continuous operating net profit

29,424

9,386

9,867

21,893

(ii) Termination of net profit

-

-

-

-

             

 

 

 

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

 

Zhang Yuzhuo                  Ma Yongsheng                      Shou Donghua     

Chairman                        President                               Chief Financial Officer

 

 

 

 

Consolidated Cash Flow Statement

for the nine-month period ended 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

 

Units: million  Currency: RMB  Type: unaudited

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

 1,709,099

2,366,716

  Refund of taxes and levies

 2,729

1,446

  Other cash received relating to operating

  activities

 156,475

102,241

  Sub-total of cash inflows

 1,868,303

2,470,403

  Cash paid for goods and services

 (1,317,936)

(1,925,742)

  Cash paid to and for employees

 (50,974)

(51,592)

  Payments of taxes and levies

 (234,913)

(280,179)

  Other cash paid relating to operating

  activities

 (180,841)

(131,492)

  Sub-total of cash outflows

 (1,784,664)

(2,389,005)

Net cash flow from operating activities

 83,639

81,398

II. Cash flows from investing activities:

 

 

Cash received from disposal of investments

 7,962

19,455

  Cash received from returns on investments

 6,746

8,173

  Net cash received from disposal of fixed assets, intangible assets and other long-term assets

 1,896

433

Net cash received from disposal of subsidiaries and other business entities

 48

-

  Other cash received relating to investing

  activities

 41,758

67,954

  Sub-total of cash inflows

 58,410

96,015

  Cash paid for acquisition of fixed assets, intangible assets and other long-term assets

 (80,972)

(73,910)

  Cash paid for acquisition of investments

 (7,407)

(14,296)

  Other cash paid relating to investing

  activities

 (73,295)

(78,561)

  Sub-total of cash outflows

 (161,674)

(166,767)

Net cash flow from investing activities

 (103,264)

(70,752)

III. Cash flows from financing activities:

 

 

  Cash received from capital contributions

            3,395

2,222

Including: Cash received from minority shareholders' capital contributions to subsidiaries

            3,395

2,198

  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)

AddInitial balance of cash and cash equivalents

         60,313

111,922

VI. Ending balance of cash and cash equivalents

         87,086

88,850

 

Zhang Yuzhuo                  Ma Yongsheng                      Shou Donghua     

Chairman                        President                               Chief Financial Officer

 

 

 

 

 

Cash Flow Statement

for the nine-month period ended 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

 

Units: million  Currency: RMB  Type: unaudited

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)

AddInitial balance of cash and cash equivalents

         38,616

59,120

VI. Ending balance of cash and cash equivalents

         55,791

33,365

 

Zhang Yuzhuo                  Ma Yongsheng                      Shou Donghua     

Chairman                        President                               Chief Financial Officer

 

 

 

 

 

 

 

 

Segment Reporting

for the nine-month period ended 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

 

Units: million  Currency: RMB  Type: unaudited

Items

Nine-month period

ended 30 September 2020

Nine-month period

ended 30 September 2019

Income from principal operations

 

 

Exploration and production

 

 

External sales

 71,021

79,424

Inter-segment sales

 44,839

66,262

Subtotal

 115,860

145,686

Refining

 

 

External sales

 80,776

105,986

Inter-segment sales

 603,290

801,310

Subtotal

 684,066

907,296

Marketing and distribution

 

 

External sales

 788,857

1,030,178

Inter-segment sales

 3,491

2,719

Subtotal

 792,348

1,032,897

Chemicals

 

 

External sales

 231,771

327,637

Inter-segment sales

 29,098

42,508

Subtotal

 260,869

370,145

Corporate and others

 

 

External sales

 352,212

641,791

Inter-segment sales

 331,577

473,187

Subtotal

 683,789

1,114,978

Elimination of inter-segment sales

 (1,023,982)

(1,385,986)

Consolidated income from principal operations

1,512,950

2,185,016

Income from other operations

 

 

Exploration and production

 4,494

6,722

Refining

 3,219

3,829

Marketing and distribution

 26,052

25,436

Chemicals

 6,389

10,912

Corporate and others

 1,513

1,390

Consolidated income from other operations

 41,667

48,289

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

       

 

 

4.2 Quarterly financial statements prepared under International Financial Reporting

Standards (IFRS)

 

Consolidated Income Statement

for the nine-month period ended 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

 

 

Units: million   Currency: RMB   Type: unaudited

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

Turnover and other operating revenues

 

 

 

 

Turnover

 504,951

718,183

 1,512,950

2,185,016

Other operating revenues

 15,420

16,126

 41,667

48,289

Subtotal

 520,371

734,309

 1,554,617

2,233,305

Operating expenses

 

 

 

 

Purchased crude oil, products and operating supplies and expenses

 (365,143)

(591,303)

 (1,202,853)

(1,798,485)

Selling, general and administrative expenses

 (14,270)

(13,269)

 (38,688)

(38,034)

Depreciation, depletion and amortization

 (26,176)

(26,387)

 (77,470)

(79,071)

Exploration expenses, including dry holes

 (1,644)

(2,276)

 (6,109)

(6,623)

Personnel expenses

 (22,142)

(20,936)

 (60,032)

(59,157)

Taxes other than income tax

 (64,034)

(61,685)

 (171,877)

(181,931)

Other operating (expense)/ income, net

 (433)

749

 7,440

(1,664)

Total operating expenses

 (493,842)

(715,107)

 (1,549,589)

(2,164,965)

Operating profit

 26,529

19,202

 5,028

68,340

Finance costs

 

 

 

 

Interest expense

 (3,838)

(4,341)

 (11,871)

(13,261)

Interest income

 1,356

1,804

 3,621

5,665

Foreign currency exchange gains/(losses), net

 348

(90)

 901

(194)

Net finance costs

 (2,134)

(2,627)

 (7,349)

(7,790)

Investment income

 38,719

25

 38,784

256

Share of profits less losses from associates and joint ventures

 1,716

2,745

 1,724

8,620

Profit before taxation

 64,830

19,345

 38,187

69,426

Income tax expense

 (11,814)

(3,728)

 (6,012)

(13,868)

Profit for the period

 53,016

15,617

 32,175

55,558

Attributable to

 

 

 

 

 Shareholders of the Company

 46,184

12,020

 24,459

44,226

 Non-controlling interests

 6,832

3,597

 7,716

11,332

Profit for the period

 53,016

15,617

 32,175

55,558

Earnings per share

 

 

 

 

Basic earnings per share (RMB)

 0.381

0.099

0.202

0.365

Diluted earnings per share (RMB)

 0.381

0.099

0.202

0.365

             
 

 

Consolidated Statement of Comprehensive Income

for the nine-month period ended 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

 

 

Units: million   Currency: RMB   Type: unaudited

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

Profit for the period

53,016

15,617

32,175

55,558

Other comprehensive income:

(978)

1,663

(3,390)

6,231

Items that may not be reclassified subsequently to profit or loss:

 

 

 

 

Equity investments at fair value through other comprehensive income

(1)

(2)

(31)

(22)

Items that may be reclassified subsequently to profit or loss:

 

 

 

 

Cash flow hedges

2,000

(248)

340

4,543

Share of other comprehensive loss of associates and joint ventures

(485)

(98)

(2,266)

(607)

Foreign currency translation differences

(2,492)

2,011

(1,433)

2,317

Total comprehensive income

52,038

17,280

28,785

61,789

Attributable to:

 

 

 

 

Shareholders of the Company

 45,629

13,003

 21,691

49,787

Non-controlling interests

 6,409

4,277

 7,094

12,002

             

 

 

 

Consolidated Balance Sheet

as at 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

Units: million   Currency: RMB   Type: unaudited

Items

At 30 September 2020

At 31 December 2019

Non-current assets

 

 

Property, plant and equipment, net

553,825

622,409

Construction in progress

141,068

173,482

Right-of-use assets

263,747

267,860

Goodwill

8,679

8,697

Interest in associates

137,289

95,737

Interest in joint ventures

53,184

56,467

Financial assets at fair value through other

 comprehensive income

1,519

1,521

Deferred tax assets

24,065

17,616

Long-term prepayments and other non-current  assets

65,031

65,426

Total non-current assets

1,248,407

1,309,215

Current assets:

 

 

Cash and cash equivalents

87,086

60,313

Time deposits with financial institutions

92,859

67,614

Financial assets at fair value through profit and loss

1,427

3,319                   

Derivatives financial assets

7,875

837

Trade accounts receivable

43,919

54,865

Financial assets at fair value through other comprehensive income

10,040

8,622

Inventories

173,051

192,442

Prepaid expenses and other current assets

134,724

57,844

Total current assets

550,981

445,856

Current liabilities

 

 

Short-term debts

45,566

40,521

Loans from Sinopec Group Company and fellow subsidiaries

50,468

43,289

Lease liabilities

15,190

15,198

Derivatives financial liabilities

13,580

2,729

Trade accounts payable and bills payable

174,016

199,792

Contract liabilities

136,947

126,735

Other payables

159,810

144,846

Income tax payable

6,062

3,264

Total current liabilities

601,639

576,374

Net current liabilities

 50,658

 130,518

Total assets less current liabilities

1,197,749

1,178,697

Non-current liabilities

 

 

Long-term debts

72,756

49,156

Loans from Sinopec Group Company and fellow subsidiaries

9,108

9,626

Lease liabilities

173,945

177,674

Deferred tax liabilities

7,880

6,809

Provisions

44,086

43,163

Other non-current liabilities

21,444

16,434

Total non-current liabilities

329,219

302,862

Total net assets

868,530

875,835

Equity

 

 

Share capital

121,071

121,071

Reserves

607,127

617,079

Total equity attributable to shareholders of the Company

728,198

738,150

Non-controlling interests

140,332

137,685              

Total equity

868,530

875,835

 

 

 

Consolidated Statement of Cash Flows

for the nine-month period ended 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

Units: million   Currency: RMB   Type: unaudited

Items

Nine-month period ended 30 September 2020

Nine-month period ended 30 September 2019

Net cash generated from operating activities(a)

 83,639

81,398

Investing activities

 

 

Capital expenditure

 (72,775)

(67,186)

Exploratory wells expenditure

 (8,197)

(6,724)

Purchase of investments, investments in associates and

investments in joint ventures

 (2,707)

(4,096)

Payments for financial assets at fair value through profit or loss

 (4,700)

(10,200)

Proceeds from sale of financial assets at fair value through profit or loss

 6,600

25,350

Proceeds from disposal of investments and investments in associates

 1,410

805

Proceeds from disposal of property, plant, equipment and other non-current assets

 1,896

433

Increase in time deposits with maturities over three months

 (64,876)

(77,339)

Decrease in time deposits with maturities over three months

 39,131

56,107

Interest received

 2,627

3,925

Investment and dividend income received

 6,746

8,173

Repayments of other investing activities

 (8,419)

-

Net cash used in investing activities

 (103,264)

(70,752)

Financing activities

 

 

Proceeds from bank and other loans

 489,892

469,696

Repayments of bank and other loans

 (405,196)

(441,579)

Contributions to subsidiaries from non-controlling interests

 3,395

2,222

Dividends paid by the Company

(23,004)

(46,007)

Distributions by subsidiaries to non-controlling interests

 (3,482)

(4,659)

Interest paid

 (4,514)

(4,781)

Payments made to acquire non-controlling interests

 (1,117)

-

Repayments of lease liabilities

 (9,514)

(9,173)

Proceeds from other financing activities

 752

250

Repayments of other financing activities

 (356)

-

Net cash used in financing activities

 46,856

(34,031)

Net increase/(decrease) in cash and cash equivalents

 27,231

(23,385)

Cash and cash equivalents at 1 January

 60,313

111,922

Effect of foreign currency exchange rate changes

 (458)

313

Cash and cash equivalents at 30 September

 87,086

88,850

Note to consolidated statement of Cash Flows

for the nine-month period ended 30 September 2020

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 September 2020

Nine-month period ended 30 September 2019

Operating activities

 

 

Profit before taxation

 38,187

69,426

Adjustments for:

 

 

Depreciation, depletion and amortization

 77,470

79,071

Dry hole costs written off

 4,516

4,553

Share of profits from associates and joint ventures

 (1,724)

(8,620)

Investment income

 (38,784)

(256)

Interest income

 (2,358)

(5,665)

Interest expense

 11,217

13,261

(Gain)/loss on foreign currency exchange rate changes and derivative financial instruments

 (2,180)

430

(Gain)/loss on disposal of property, plant, equipment and other non-current assets, net

 (67)

248

Impairment losses on assets

 11,415

91

Credit impairment losses

 842

7

Operating profit before change of operating capital

 98,534

152,546

Accounts receivable and other current assets

 3,636

(22,910)

Inventories

 8,062

(14,055)

Accounts payable and other current liabilities

 (16,484)

(19,003)

Subtotal

 93,748

96,578

Income tax paid

 (10,109)

(15,180)

Net cash generated from operating activities

 83,639

81,398

 

 

 

Segment Reporting

for the nine-month period ended 30 September 2020

Prepared by: China Petroleum & Chemical Corporation

Units: million   Currency: RMB   Type: unaudited

Items

Nine-month period ended 30 September 2020

Nine-month period ended 30 September 2019

Turnover

 

 

Exploration and production

 

 

External sales

71,021

79,424

Inter-segment sales

44,839

66,262

Subtotal

115,860

145,686

Refining

 

 

External sales

80,776

105,986

Inter-segment sales

603,290

801,310

Subtotal

684,066

907,296

Marketing and distribution

 

 

External sales

788,857

1,030,178

Inter-segment sales

3,491

2,719

Subtotal

792,348

1,032,897

Chemicals

 

 

External sales

231,771

327,637

Inter-segment sales

29,098

42,508

Subtotal

260,869

370,145

Corporate and others

 

 

External sales

352,212

641,791

Inter-segment sales

331,577

473,187

Subtotal

683,789

1,114,978

Elimination of inter-segment sales

(1,023,982)

(1,385,986)

Turnover

1,512,950

2,185,016

Other operating revenues

 

 

Exploration and production

4,494

6,722

Refining

3,219

3,829

Marketing and distribution

26,052

25,436

Chemicals

6,389

10,912

Corporate and others

1,513

1,390

Other operating revenues

41,667

48,289

Turnover and other operating revenues

1,554,617

2,233,305

Result

 

 

Operating (loss)/profit

 

 

By segment

 

 

Exploration and production

(6,479)

8,718

Refining

(15,098)

22,500

Marketing and distribution

16,958

23,245

Chemicals

7,047

16,560

Corporate and others

(2,516)

(2,439)

Elimination

5,116

(244)

Total segment operating profit

5,028

68,340

Share of profits from associates and joint ventures

 

 

Exploration and production

1,208

2,256

Refining

(2,177)

(802)

Marketing and distribution

1,171

2,337

Chemicals

(40)

3,237

Corporate and others

1,562

1,592

Aggregate share of profits from associates and joint ventures

1,724

8,620

Investment income/(losses)

 

 

Exploration and production

13,205

(3)

Refining

15,389

35

Marketing and distribution

9,092

63

Chemicals

4

2

Corporate and others

1,094

159

Aggregate investment income

38,784

256

Net finance costs

(7,349)

(7,790)

Profit before taxation

38,187

69,426

 

 

 

4.3 Differences between Consolidated Financial Statements prepared in accordance 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 recognized 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 recognized 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 ended 30 September 2020

Nine-month period ended 30 September 2019

Net profit under CASs

 31,014

 54,464

Adjustments:

 

 

Government grants (i)

 40

 42

Safety production fund (ii)

 1,126

 1,229

Others

 (5)

 (177)

Profit for the period under IFRS

 32,175

 55,558

 

 

 

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

At 30 September 2020

At 31 December 2019

Shareholders' equity under CASs

 869,560

 876,905

Adjustments:

 

 

Government grants(i)

 (1,030)

 (1,070)

Total equity under IFRS

 868,530

 875,835

 

 

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