香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 海外監管公告 中國石油化工股份有限公司 2025 年第一季度報告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.09 條及第 13.10B 條 及證券及期貨條例（香港法例第 571 章）第 XIVA 部項下內幕消息條文而做出。 承董事會命 中國石油化工股份有限公司 黃文生 副總裁、董事會秘書 中國北京 2025 年 4 月 28 日 於本公告日期，本公司的董事為：馬永生* 、趙東# 、鐘韌* 、李永林# 、呂亮功# 、牛栓文# 、萬 濤# 、喻寶才# 、徐林+ 、張麗英+ 、廖子彬+ 及張希良+ 。 # 執行董事 * 非執行董事 + 獨立非執行董事 1 中国石油化工股份有限公司 2025 年第一季度报告 2025 年 4 月 28 日 中国 北京 | 非经常性损益项目 | 截至 2025 年 3 月 | 31 日止 | 3 个月期间 | | --- | --- | --- | --- | | | ...

Financial Performance - For the year ended December 31, 2024, the total operating revenue was RMB 3,074,562 million, a decrease of 4.3% compared to RMB 3,212,215 million in 2023[12]. - The net profit attributable to shareholders of the parent company was RMB 50,313 million, down 16.8% from RMB 60,463 million in 2023[12]. - The cash flow from operating activities for the year was RMB 149,360 million, a decrease of 7.5% from RMB 161,475 million in 2023[12]. - The basic earnings per share for 2024 decreased by 17.8% to RMB 0.415 from RMB 0.505 in 2023[13]. - The net profit attributable to shareholders of the company for 2024 was RMB 48,939 million, down from RMB 58,310 million in 2023, representing a decline of 16.5%[25]. - The operating profit for 2024 was RMB 70.69 billion, representing an 18.6% decrease year-on-year[91]. - The profit attributable to the company's shareholders was RMB 48.94 billion, down 16.1% compared to the previous year[91]. - The total operating revenue for the company was RMB 307.5 billion, with a decrease of 4.3% year-on-year, while the gross profit margin was 6.8%[157]. Assets and Liabilities - The total assets as of December 31, 2024, amounted to RMB 2,084,771 million, reflecting a 2.9% increase from RMB 2,026,674 million in 2023[12]. - The total liabilities increased by 3.8% to RMB 1,108,478 million in 2024, compared to RMB 1,068,019 million in 2023[12]. - The asset-liability ratio increased to 53.17% in 2024 from 52.70% in 2023, reflecting a rise of 0.47 percentage points[14]. - As of December 31, 2024, total assets amounted to RMB 2,081.44 billion, an increase of RMB 56.74 billion compared to the previous year[130]. - Total liabilities rose to RMB 1,109.293 billion, an increase of RMB 40.406 billion, with current liabilities increasing by RMB 26.161 billion[134]. Dividends and Shareholder Returns - The company proposed a final cash dividend of RMB 0.14 per share (tax included), in addition to the interim dividend of RMB 0.146 per share, totaling RMB 0.286 per share for the year 2024[8]. - The company has implemented a high cash dividend policy and announced a three-year shareholder return plan for 2024-2026[161]. Operational Highlights - The company reported a quarterly operating revenue of RMB 789,967 million in Q1, RMB 786,164 million in Q2, RMB 790,410 million in Q3, and RMB 708,021 million in Q4 for the year 2024[12]. - The company achieved a revenue of 3.07 trillion RMB for the year 2024, with a net profit attributable to shareholders of 48.94 billion RMB[32]. - The company achieved an oil and gas equivalent production of 515.35 million barrels, a year-on-year increase of 2.2%[55]. - Domestic crude oil production reached 254.00 million barrels, reflecting a 0.9% increase compared to the previous year[55]. - The total crude oil processing volume for 2024 was 252.30 million tons, a decrease of 2.0% compared to 257.52 million tons in 2023[67]. Investment and Capital Expenditure - The company plans to invest capital expenditures of 164.3 billion yuan in 2025, focusing on high-quality exploration and development, refining business transformation, and new energy projects[48]. - In 2024, the company achieved a capital expenditure of RMB 175 billion, with RMB 82.3 billion allocated to exploration and development, RMB 29.3 billion to refining, RMB 14.1 billion to marketing and distribution, and RMB 44.7 billion to the chemical sector[78]. Market and Industry Position - The company aims to strengthen its market position in the LNG sector, with a leading domestic market share and over 10,000 charging and hydrogen stations established[35]. - The company plans to enhance its marketing and distribution capabilities, aiming for a domestic refined oil sales volume of 178 million tons in 2025[83]. Corporate Governance and Social Responsibility - The company is committed to ESG governance, with ongoing efforts to reduce energy consumption and pollutant emissions[38]. - Sinopec's board has implemented a diversity policy, ensuring a balanced mix of skills, experiences, and backgrounds among its members[186]. - The company achieved a female employee ratio of 29.9% in 2024, promoting gender equality and equal employment opportunities[181]. - The company has initiated a second phase of its green enterprise action plan, focusing on ecological protection and carbon peak actions[161].

Financial Performance - The total operating revenue for 2024 was RMB 3,074,562 million, a decrease of 4.3% compared to RMB 3,212,215 million in 2023[8] - The net profit attributable to shareholders of the parent company for 2024 was RMB 50,313 million, down 16.8% from RMB 60,463 million in 2023[8] - The basic earnings per share for 2024 was RMB 0.415, a decline of 17.8% compared to RMB 0.505 in 2023[9] - The cash flow from operating activities for 2024 was RMB 149,360 million, down 7.5% from RMB 161,475 million in 2023[8] - The company's net profit attributable to shareholders was RMB 48,939 million, down 16.0% from RMB 58,310 million in 2023[21] - The operating profit for 2024 was RMB 70.69 billion, representing an 18.6% decrease year-on-year[87] - The profit attributable to the company's shareholders was RMB 48.94 billion, down 16.1% year-on-year[87] - The main business revenue for 2024 was RMB 3,015.32 billion, down 4.2% compared to 2023, primarily due to declines in product prices and sales volumes[88] Assets and Liabilities - The total assets as of December 31, 2024, increased to RMB 2,084,771 million, reflecting a growth of 2.9% from RMB 2,026,674 million in 2023[8] - The total liabilities as of December 31, 2024, rose to RMB 1,108,478 million, an increase of 3.8% from RMB 1,068,019 million in 2023[8] - The company reported a debt-to-asset ratio of 53.17% as of December 31, 2024, up from 52.70% in 2023[10] - Non-current liabilities amounted to RMB 435.24 billion, up RMB 14.3 billion from the previous year, mainly attributed to the issuance of low-cost long-term bonds[150] - The company's equity attributable to shareholders increased to RMB 815.815 billion, up RMB 12.826 billion[130] Dividends - The company proposed a final cash dividend of RMB 0.14 per share for 2024, in addition to an interim dividend of RMB 0.146 per share already distributed[4] - The board proposed a final cash dividend of 0.14 RMB per share, resulting in a total annual cash dividend of 0.286 RMB per share, with a profit distribution ratio of 75% when combined with the interim dividend[28] - The company has implemented a three-year shareholder dividend plan (2024-2026) to maintain a high cash dividend ratio[156] Operational Highlights - The company achieved a revenue of 3.07 trillion RMB and a net profit attributable to shareholders of 48.94 billion RMB, with operating cash flow of 149.36 billion RMB and a debt-to-asset ratio of 53.3%[28] - The company achieved an oil and gas equivalent production of 515.35 million barrels, a year-on-year increase of 2.2%[51] - Domestic crude oil production reached 254.00 million barrels, reflecting a 0.9% increase compared to the previous year[51] - The total crude oil processing volume for 2024 was 252.30 million tons, a decrease of 2.0% compared to 257.52 million tons in 2023[63] - The total sales volume of refined oil products was 239.33 million tons in 2024, slightly up by 0.1% from 239.05 million tons in 2023[67] Investment and Expenditures - The company plans to invest CNY 164.3 billion in capital expenditures for 2025, focusing on high-quality exploration, refining upgrades, and new energy projects[44] - In 2024, the company achieved a capital expenditure of RMB 175 billion, with RMB 82.3 billion allocated to exploration and development, RMB 29.3 billion to refining, RMB 14.1 billion to marketing and distribution, and RMB 44.7 billion to the chemical sector[74] ESG and Sustainability - The company is focusing on ESG governance, with a commitment to carbon peak actions and a reduction in comprehensive energy consumption and major pollutant emissions[34] - The company is advancing its digital transformation with the launch of an intelligent operation center 2.0 and a digital twin-based smart ethylene plant[31] - The company is set to focus on sustainable development and the promotion of high-quality growth as it approaches its 25th anniversary of listing in 2025[34] - The company emphasizes the integration of ESG (Environmental, Social, and Governance) factors into its development strategy and major decision-making processes[199] Governance and Management - Sinopec's board consists of 12 members, including 6 executive directors and 6 non-executive directors, with independent non-executive directors making up approximately 33% of the board[180] - The company has established a performance evaluation and incentive mechanism for senior management to ensure transparency and fairness[166] - Sinopec's governance framework aims to create long-term value for stakeholders through strategic planning and execution[172] - The independent non-executive directors have confirmed their independence in accordance with Hong Kong listing rules[180] - Sinopec has purchased liability insurance for directors to mitigate potential losses arising from their duties[185]

Investment Rating - The report maintains an "OUTPERFORM" rating for China Petroleum & Chemical Corporation (386 HK) with a target price of HK$6.09, compared to the current price of HK$4.31 [1][4]. Core Insights - In the first three quarters of 2024, the company reported a revenue of RMB 236,654.1 million, a year-on-year decrease of 4.2%, and a net profit attributable to shareholders of RMB 44,247 million, down 16.5% year-on-year. In Q3 alone, the net profit was RMB 8,544 million, reflecting a significant decline of 52.1% year-on-year [2][5]. - The decline in oil prices has adversely affected the company's profitability across all business segments, with Brent crude oil prices averaging USD 81.76, USD 85.03, and USD 78.71 per barrel in the first three quarters of 2024, leading to a general downturn in earnings [2][5]. Business Segment Summaries Exploration and Production - In Q3, the company achieved an oil and gas equivalent production of 128 million barrels, a year-on-year increase of 1.68% but a quarter-on-quarter decrease of 0.37%. The revenue for this segment was RMB 69,620 million, down 6.09% year-on-year, with an operating profit of RMB 13,547 million, a slight decline of 1.62% quarter-on-quarter [12][2]. Refining - The refining segment reported a revenue of RMB 376,731 million in Q3, a decrease of 7.31% year-on-year, and an operating loss of RMB 539 million, marking the first quarterly loss of 2023. The drop in crude oil prices has increased operational pressures due to higher refining costs and inventory losses [14][3]. Chemicals - The chemical segment generated revenue of RMB 135,465 million in Q3, a slight increase of 0.45% year-on-year, but faced an operating loss of RMB 1,732 million. The segment has been under significant pressure since 2022, with the ethylene-naphtha spread remaining low at USD 191.37 per ton, well below the historical average of USD 425 per ton [17][19]. Marketing and Distribution - The marketing and distribution segment saw revenue of RMB 448,978 million in Q3, down 8.16% year-on-year, with an operating profit of RMB 2,589 million, a significant decline of 64.91% year-on-year [3][11]. Earnings Forecast - The company is expected to have EPS of RMB 0.60, RMB 0.61, and RMB 0.63 for 2024, 2025, and 2026 respectively, with a BPS of RMB 6.92 for 2024. The reasonable valuation range is set between HK$5.54 and HK$6.09, corresponding to a PE of 10 times for 2024 [22][4].

Investment Rating - The report initiates coverage with an "Outperform" rating for China Petroleum & Chemical Corporation (386 HK) at a current price of HK$4.65 and a target price of HK$6.09 [2][19]. Core Insights - The company aims to enhance identification and promote enterprise valuation through share buy-backs and high dividend yields, with a planned annual cash dividend payout ratio of no less than 65% over the next three years [4][24]. - In the first half of 2024, the company reported revenue of RMB 1,576.1 billion, a decrease of 1.1% year-on-year, while net profit attributable to shareholders was RMB 35.7 billion, an increase of 1.7% year-on-year [4][24]. - The exploration and production segment benefited from rising oil prices, with Brent crude averaging USD 83.42 per barrel, up 4.38% year-on-year, and a 2.97% increase in oil and gas equivalent production [4][9]. - The refining segment saw a revenue increase of 2.8% year-on-year but a significant profit decline of 37.6% [12]. - The chemical segment reported a revenue increase of 5.3% year-on-year but incurred an operating loss of RMB 3.164 billion, indicating ongoing challenges in this area [15][17]. Revenue and Profit Forecast - Revenue projections for 2024-2026 are RMB 3,218.0 billion, RMB 3,298.7 billion, and RMB 3,331.7 billion respectively, with net profit estimates of RMB 72.7 billion, RMB 74.4 billion, and RMB 76.5 billion [3][19]. - The diluted EPS is forecasted to be RMB 0.60, RMB 0.61, and RMB 0.62 for 2024-2026 [19]. Business Segment Performance - The exploration and production segment's operating profit increased by 14.7% year-on-year, driven by higher oil prices and production levels [9][10]. - The refining segment's operating income was RMB 749.67 billion, but profits fell due to decreased margins on diesel products [12][13]. - The chemical segment continues to struggle, with a reported loss and declining production of key products like ethylene [15][17]. Market Position and Valuation - The company has a market capitalization of HK$812.11 billion (approximately USD 104.16 billion) and a P/E ratio projected to decrease from 9 in 2024 to 7 in 2026 [2][19]. - The report suggests a reasonable valuation of HK$5.54 to HK$6.09 based on a P/B multiple of 0.8 times the 2024 BPS [19].

Financial Performance - For the six months ended June 30, 2024, the operating revenue was RMB 1,576,131 million, a decrease of 1.1% compared to RMB 1,593,682 million in the same period of 2023[7]. - The net profit attributable to shareholders of the parent company was RMB 35,703 million, representing an increase of 1.7% from RMB 35,111 million year-on-year[7]. - The net cash flow from operating activities increased significantly by 53.4% to RMB 42,269 million, compared to RMB 27,562 million in the previous year[7]. - The total assets as of June 30, 2024, were RMB 2,141,936 million, reflecting a growth of 5.7% from RMB 2,026,674 million at the end of 2023[7]. - The basic earnings per share for the first half of 2024 was RMB 0.296, up 1.0% from RMB 0.293 in the same period of 2023[8]. - The weighted average return on net assets was 4.37%, a slight decrease of 0.06 percentage points compared to 4.43% in the previous year[8]. - The company reported a significant increase in net profit after deducting non-recurring gains and losses, which rose by 5.7% to RMB 35,582 million from RMB 33,655 million year-on-year[7]. - The company achieved a net profit of RMB 42.39 billion in the first half of 2024, an increase of 1.9% compared to the same period in 2023[35]. - The company reported a total comprehensive income of RMB 35,382 million for the six months ended June 30, 2024, compared to RMB 40,476 million for the same period in 2023, indicating a decrease of about 12.5%[170]. Revenue and Sales - Total operating income for the first half of 2024 was RMB 51,021 million, a decrease of 5.0% compared to RMB 53,696 million in the same period of 2023[13]. - The company’s external sales revenue from the refining and marketing divisions reached RMB 920.4 billion, a year-on-year decrease of 0.6%, accounting for 58.4% of total revenue[39]. - Sales revenue from gasoline, diesel, and kerosene amounted to RMB 769.9 billion, a year-on-year increase of 0.2%, representing 83.6% of total petroleum product sales revenue[39]. - The company reported a 3.4% increase in revenue from exports of crude oil and natural gas, totaling RMB 92.7 billion in the first half of 2024[38]. - The marketing and distribution segment aims for a domestic refined oil sales volume of 91.09 million tons in the second half of 2024[31]. Operating Expenses and Costs - Operating expenses for the first half of 2024 were RMB 1,525.1 billion, a year-on-year decrease of 1.0%[40]. - The cost of purchasing crude oil was RMB 468 billion, a year-on-year increase of 5.0%, with an average processing cost of RMB 4,445 per ton, up 6.3% year-on-year[40]. - The company’s financial expenses increased by 31.0% to RMB 6,275 million, primarily due to increased foreign currency loan losses and higher interest expenses[12]. - The company reported a significant increase in accounts receivable, which rose to RMB 76,746 million from RMB 48,652 million, marking a growth of about 57.7%[164]. Investments and Capital Expenditures - Capital expenditures for the first half of 2024 amounted to RMB 55.893 billion, with RMB 33.788 billion allocated to exploration and development projects[30]. - The company plans to produce 139 million barrels of crude oil and 6,795 billion cubic feet of natural gas in the second half of 2024[31]. - Capital expenditures for the second half of 2024 are planned at RMB 117.1 billion, with RMB 44 billion allocated for exploration and development[32]. - The company has completed an investment of RMB 25.9 billion in the Zhenhai Refining and Chemical Expansion Project (Phase II) as of June 30, 2024, which includes a new 11 million tons/year refining unit and a 600,000 tons/year propane dehydrogenation unit[109]. Dividends and Shareholder Returns - The company plans to distribute a mid-term cash dividend of 0.146 RMB per share for 2024, adhering to the upper limit set by the company's articles of association[15]. - The board has proposed a cash dividend payout ratio of no less than 65% for the next three years, ensuring consistent shareholder returns[17]. - The cash dividend for the year-end 2023 is set at RMB 0.2 per share (tax included), with a total cash dividend distribution of RMB 0.345 per share for the entire year 2023[86]. - The interim dividend for the six months ending June 30, 2024, is set at RMB 0.146 per share, with a total payout scheduled for September 26, 2024[87]. Environmental and Sustainability Efforts - The company is committed to improving ESG management and promoting sustainable development through enhanced governance and risk control measures[16]. - The company reported a 4% year-on-year reduction in COD emissions and a 3% decrease in sulfur dioxide emissions during the reporting period[94]. - The company achieved a reduction of 2.149 million tons of CO2 equivalent emissions through energy-saving measures and recovered 1.062 million tons of CO2[95]. - The second phase of Sinopec's green enterprise action plan aims for a 5% reduction in carbon emission intensity and a 20% reduction in methane emission intensity by 2028, with a target of capturing and utilizing 2.5 million tons of CO2 annually[96]. Corporate Governance and Management - The company completed the election of the ninth board of directors and supervisory board members during the annual general meeting held on June 28, 2024[82]. - The company has strengthened internal control and risk management, continuously improving compliance management levels[81]. - The company appointed Zhao Dong as the new president and executive director on April 28, 2024, following the resignation of the previous president[83]. - The company has diversified its board members in terms of professional background, gender, and work experience[81]. Research and Development - Research and development expenses for the first half of 2024 amounted to RMB 9.8 billion, with RMB 6 billion in expenses and RMB 3.8 billion in investment[70]. - The company is focusing on innovation-driven strategies, particularly in key technologies and the development of new energy sources such as hydrogen and solar energy[16]. Risk Management - The company faces risks related to macroeconomic changes, including uncertainties from global economic growth and environmental constraints[143]. - The company is exposed to cyclical risks in the oil and petrochemical industry, with significant sensitivity to macroeconomic conditions and consumer demand[143]. - The company has implemented strict HSE management systems to mitigate production and operational risks associated with the high-risk nature of the oil and petrochemical industry[145]. Share Capital and Financing - Sinopec completed the issuance of 2,390,438,247 A-shares, increasing the total share capital from 119,349,251,646 shares to 121,739,689,893 shares[123]. - The total amount of funds raised was RMB 12 billion, with a net amount after expenses of RMB 11.987 billion, and 11% of the committed investment has been utilized[124]. - The company issued short-term financing bonds totaling RMB 120 billion with an interest rate of 1.97%[158]. Cybersecurity - The company has established a cybersecurity risk management system and is continuously investing resources to enhance its cybersecurity measures[146]. - The company is expected to increase investments in data security, business security, cloud computing, and IoT devices to improve cybersecurity levels[146].

Financial Performance - For the six months ended June 30, 2024, the operating revenue was RMB 1,576,131 million, a decrease of 1.1% compared to RMB 1,593,682 million in the same period of 2023[7]. - The net profit attributable to shareholders of the parent company was RMB 35,703 million, representing an increase of 1.7% from RMB 35,111 million year-on-year[7]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 35,582 million, up 5.7% from RMB 33,655 million in the previous year[7]. - The net cash flow from operating activities was RMB 42,269 million, a significant increase of 53.4% compared to RMB 27,562 million in the same period last year[7]. - Basic earnings per share for the six months ended June 30, 2024, were RMB 0.296, a 1.0% increase from RMB 0.293 in the same period of 2023[8]. - The diluted earnings per share also stood at RMB 0.296, reflecting the same growth of 1.0% year-on-year[8]. - The company achieved a net profit of RMB 42.39 billion in the first half of 2024, an increase of 1.9% compared to the same period in 2023[35]. - The company reported a total profit of RMB 21,387 million, a decline of 31.1% from RMB 31,078 million year-on-year[167]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 2,141,936 million, reflecting a 5.7% increase from RMB 2,026,674 million at the end of 2023[7]. - The total liabilities increased to RMB 1,156.4 billion as of June 30, 2024, up RMB 87.5 billion from the end of 2023[64]. - The company's total assets as of June 30, 2024, were RMB 2,141,936 million, an increase from RMB 2,026,674 million as of December 31, 2023, representing a growth of approximately 5.7%[164]. - The company's total liabilities reached RMB 1,155,591 million, up from RMB 1,068,019 million, indicating an increase of about 8.2%[164]. Cash Flow - The company's net cash inflow from operating activities was RMB 42,269 million, an increase of RMB 14,707 million compared to RMB 27,562 million in the same period of 2023[67]. - The company's net cash outflow from investing activities in the first half of 2024 was RMB 79,004 million, a decrease of RMB 14,426 million from RMB 93,430 million in the same period of 2023[68]. - The net cash inflow from financing activities in the first half of 2024 was RMB 36,862 million, a decrease of RMB 29,999 million compared to RMB 66,861 million in the same period of 2023[68]. - The company reported a significant increase in cash flow from investment activities, with a net cash outflow of RMB 79,004 million, compared to RMB 93,430 million in the previous year[168]. Production and Sales - The total oil and gas equivalent production reached 257.66 million barrels, a year-on-year increase of 3.1%, with domestic crude oil production at 126.49 million barrels, up 1.5%[20]. - Natural gas production was 700.57 billion cubic feet, reflecting a year-on-year growth of 6.0%[20]. - The company processed 12,669 million tons of crude oil, producing 7,730 million tons of refined oil, a year-on-year increase of 1.6%[22]. - Total refined oil sales reached 11,901 million tons, a year-on-year growth of 2.1%, with domestic sales at 9,014 million tons[24]. Dividends and Shareholder Returns - The company plans to distribute a mid-year cash dividend of RMB 0.146 per share for 2024, adhering to the upper limit set by the company's articles of association[15]. - The company aims to maintain a cash dividend payout ratio of no less than 65% over the next three years, sharing development results with shareholders[17]. - The cash dividend for the year ending December 31, 2023, is RMB 0.2 per share (tax included), approved by the annual general meeting[86]. - The total cash dividend for 2023, including the interim dividend of RMB 0.145 per share (tax included), amounts to RMB 0.345 per share (tax included)[86]. Environmental and Sustainability Initiatives - The company emphasizes improving ESG management and sustainable development, with ongoing efforts to enhance corporate governance and stakeholder communication[16]. - The company reported a 4% year-on-year reduction in COD emissions and a 3% decrease in sulfur dioxide emissions during the reporting period[94]. - The company achieved a reduction of 2.149 million tons of CO2 equivalent emissions through energy-saving measures, alongside the recovery of 1.062 million tons of CO2[95]. - The company has implemented a comprehensive ecological protection plan, focusing on pollution prevention and environmental responsibility[94]. Strategic Initiatives and Future Plans - The company is focusing on enhancing operational quality and expanding profit-generating capabilities through integrated advantages and cost control measures[15]. - The company is actively developing new energy businesses, including hydrogen, wind, and solar energy, to create a complementary energy structure[16]. - The company is transitioning towards a comprehensive energy service provider, focusing on hydrogen energy and electric vehicle charging networks[23]. - The company plans to produce 139 million barrels of crude oil and 6,795 billion cubic feet of natural gas in the second half of 2024[32]. Corporate Governance and Management - The company completed the election of the ninth board of directors and supervisory board members during the annual general meeting held on June 28, 2024[82]. - The new president, Zhao Dong, was appointed on April 28, 2024, following the resignation of the previous president, Yu Baocai[83]. - The company emphasizes enhancing internal control and risk management, continuously improving compliance management levels[81]. - The ninth board of directors reflects diversity in professional background, gender, and work experience[81]. Risks and Challenges - The company faces risks related to macroeconomic changes, including uncertainties from global economic growth and environmental constraints[143]. - The company is exposed to cyclical risks in the oil and petrochemical industry, with significant sensitivity to macroeconomic conditions and consumer demand[143]. - Regulatory risks include potential changes in government policies affecting oil and gas exploration and production licenses, as well as retail pricing controls[143]. - The company is significantly reliant on imported crude oil, making it vulnerable to price volatility and supply disruptions due to geopolitical factors[144].

Financial Performance - For the first quarter of 2024, the company's operating revenue was RMB 789,967 million, a slight decrease of 0.2% compared to RMB 791,331 million in the same period of 2023[4] - The net profit attributable to shareholders of the parent company was RMB 18,316 million, representing a decrease of 8.9% from RMB 20,102 million year-on-year[4] - The net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses was RMB 18,186 million, down 7.8% from RMB 19,716 million in the previous year[4] - Basic and diluted earnings per share were both RMB 0.153, down 8.9% from RMB 0.168 in the previous year[4] - The weighted average return on equity was 2.23%, a decrease of 0.29 percentage points compared to 2.52% in the same period last year[4] - The total comprehensive income for the period was RMB 20,552 million, down from RMB 21,645 million year-over-year[28] - The company's total comprehensive income for Q1 2024 was RMB 5,172 million, down from RMB 8,224 million in Q1 2023[29] - The total profit for the period was RMB 21,836 million, down from RMB 23,557 million in the previous year, reflecting a decrease of 7.29%[38] Cash Flow and Investments - The net cash flow from operating activities was negative at RMB (13,755) million, an improvement from RMB (18,397) million in the same period last year[4] - Cash received from investment income rose to RMB 921 million, a 126.3% increase from RMB 407 million year-on-year[8] - The company achieved a cash inflow of RMB 19.681 billion from other investment activities, a 228.3% increase from RMB 5.995 billion year-on-year[8] - The cash received from financing activities increased significantly to RMB 12.358 billion, a 13,943.2% increase compared to RMB 88 million in the previous period[8] - The company reported a cash inflow from investment activities of RMB 21,238 million in Q1 2024, compared to RMB 8,287 million in Q1 2023[30] - The cash flow from financing activities generated a net inflow of RMB 45,931 million in Q1 2024, down from RMB 82,285 million in Q1 2023[31] Assets and Liabilities - Total assets as of March 31, 2024, were RMB 2,094,106 million, an increase of 3.3% from RMB 2,026,674 million at the end of 2023[4] - The equity attributable to shareholders of the parent company was RMB 834,174 million, up 3.5% from RMB 805,794 million at the end of 2023[4] - The company's total assets as of March 31, 2024, amounted to RMB 1,194,909 million, compared to RMB 1,189,467 million at the end of 2023, showing a slight increase[24] - Total liabilities increased to RMB 663,945 million from RMB 674,918 million, indicating a reduction in total liabilities[25] - The total current liabilities increased to RMB 696,979 million from RMB 647,076 million, reflecting a rise of 7.66%[39] Production and Sales - The oil and gas equivalent production reached 128.78 million barrels, representing a year-on-year increase of 3.4%, with natural gas production at 350.46 billion cubic feet, up 6.0% year-on-year[11] - Total refined oil sales volume was 5.981 million tons, representing a 6.5% increase year-on-year[14] - The exploration and development segment reported external sales of RMB 52,182 million, a decrease of 0.77% from RMB 52,585 million year-over-year[44] - The refining segment achieved external sales of RMB 41,422 million, down 8.5% from RMB 45,216 million in the previous year[44] - The marketing and distribution segment's external sales were RMB 408,420 million, a decrease of 1.2% compared to RMB 412,676 million in the same period last year[44] - The chemical segment reported external sales of RMB 98,333 million, an increase of 1.4% from RMB 96,966 million year-over-year[44] Research and Development - Research and development expenses for the quarter were RMB 2,948 million, up from RMB 2,841 million, indicating a focus on innovation[26] - Research and development expenses increased to RMB 2,736 million in Q1 2024, up from RMB 2,568 million in Q1 2023[29] Strategic Initiatives - The company plans to continue optimizing its supply chain and expanding market reach to enhance operational performance[11] - The company plans to reduce carbon emissions intensity by 5% and methane emissions intensity by 20% by 2028 as part of its green enterprise action plan[20] - The financial results indicate a need for strategic adjustments to enhance profitability and shareholder value moving forward[49][50]

Financial Performance - Total operating revenue for 2023 was RMB 3,212,215 million, a decrease of 3.2% compared to RMB 3,318,168 million in 2022[7]. - Net profit attributable to shareholders of the parent company for 2023 was RMB 60,463 million, down 9.9% from RMB 67,082 million in 2022[7]. - Operating profit for 2023 was RMB 86,744 million, reflecting a decline of 10.0% from RMB 96,414 million in 2022[7]. - Basic earnings per share for 2023 were RMB 0.505, a decrease of 9.0% from RMB 0.555 in 2022[8]. - The total assets as of December 31, 2023, were RMB 2,026,674 million, an increase of 3.9% from RMB 1,951,121 million in 2022[7]. - The total liabilities as of December 31, 2023, were RMB 1,068,019 million, up 5.7% from RMB 1,010,664 million in 2022[7]. - The weighted average return on net assets for 2023 was 7.59%, down from 8.57% in 2022[8]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 60,692 million, an increase of 4.7% from RMB 57,962 million in 2022[7]. - The asset-liability ratio for 2023 was 52.70%, an increase of 0.90 percentage points from 51.80% in 2022[8]. Dividends and Shareholder Returns - China Petroleum & Chemical Corporation (Sinopec) reported a cash dividend of RMB 0.345 per share for the year 2023, which includes a final dividend of RMB 0.2 per share and an interim dividend of RMB 0.145 per share[5]. - The cash dividend for the year is proposed at 0.345 RMB per share, resulting in a payout ratio of 75%[17]. - Sinopec's board of directors has confirmed that there are no major misstatements or omissions in the annual report, ensuring the accuracy and completeness of the financial data[5]. Operational Highlights - The company processed 257.52 million tons of crude oil in 2023, an increase of 6.3% from 242.27 million tons in 2022, achieving a record high[35]. - The total sales volume of refined oil reached 239.05 million tons in 2023, representing a year-on-year growth of 15.6%[37]. - The production of kerosene increased significantly by 60.7% in 2023, reaching 28.95 million tons compared to 18.01 million tons in 2022[35]. - The company achieved a total of 1.56 million tons of refined oil production in 2023, which is an 11.3% increase from 1.40 million tons in 2022[34]. - The company reported a significant increase in the utilization of green electricity and aims to become China's leading hydrogen energy company[21]. Environmental, Social, and Governance (ESG) Initiatives - The company has a commitment to environmental and social responsibility, as outlined in its annual report[4]. - Sinopec has made significant progress in ESG initiatives, including carbon peak actions and enhancing safety management systems[20]. - The company aims to enhance its green transformation and ESG management, focusing on carbon peak and reduction initiatives[21]. - Sinopec's management provides monthly updates to the board on financial, operational, and market dynamics[110]. Corporate Governance - Sinopec has maintained compliance with corporate governance regulations and has enhanced its governance level, focusing on shareholder returns and high cash dividends[89]. - The board of directors consists of 9 members, including 3 executive directors and 6 non-executive directors, with independent non-executive directors making up approximately 44% of the board[99]. - The company has established a clear division of responsibilities between the chairman and the CEO, ensuring effective governance[104]. - The board has a structured process for evaluating the performance of its members and ensuring compliance with governance standards[103]. Future Outlook and Strategic Goals - In 2024, the company aims to focus on value creation and the effective improvement of business quality while ensuring reasonable growth across all sectors[20]. - The company plans to expand its refining capacity by 5% over the next two years, aiming to reach a total capacity of 300 million tons annually[124]. - Sinopec has outlined a strategic goal to increase its market share in the petrochemical sector by 10% by 2025[124]. - The company is exploring potential mergers and acquisitions to enhance its upstream oil and gas exploration capabilities, with a budget of 30 billion RMB allocated for this purpose[124]. Investments and Capital Expenditures - The company invested a total of RMB 176.8 billion in capital expenditures in 2023, with RMB 78.6 billion allocated to exploration and development[43]. - Capital expenditures for 2024 are planned at RMB 173 billion, with significant allocations for exploration and development (RMB 77.8 billion) and chemical projects (RMB 45.8 billion)[47]. - The company has initiated the Zhenhai 1.5 million tons/year Ethylene and Downstream High-end New Materials Project, with a total investment of RMB 2.7 billion expected to be completed by December 2025[175]. Market Presence and Expansion - The company is listed on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange, enhancing its market presence[5]. - Sinopec plans to expand its overseas business and develop low-sulfur marine fuel markets, becoming the second largest in the global market[36]. - The company is focusing on enhancing its international operations, with significant growth in overseas retail markets anticipated[46]. Research and Development - The company's research and development expenditure in 2023 was RMB 23.2 billion, with RMB 14 billion allocated to expenses and RMB 9.2 billion to investments[76]. - The company applied for 9,601 patents in 2023 and received 5,483 patent authorizations, highlighting its commitment to innovation[40]. Employee and Workforce Management - The total number of employees at the company as of December 31, 2023, is 368,009, with 296,762 being retirees[143]. - The gender ratio of all employees is 2.3:1, achieving the company's target for female employment[143]. - The company has achieved a female board member representation of 11%, meeting the target of at least one female director[99].

Financial Performance - Total operating revenue for 2023 was RMB 3,212,215 million, a decrease of 3.2% compared to RMB 3,318,168 million in 2022[5] - Net profit attributable to shareholders of the parent company for 2023 was RMB 60,463 million, down 9.9% from RMB 67,082 million in 2022[5] - Basic earnings per share for 2023 were RMB 0.505, a decrease of 9.0% compared to RMB 0.555 in 2022[6] - The net profit attributable to shareholders for 2023 was RMB 58,310 million, down 12.5% from RMB 66,933 million in 2022[11] - The company's net profit attributable to shareholders in 2023 was RMB 60.463 billion, a decrease of RMB 6.6 billion or 9.9% compared to 2022[81] - The company's total consolidated operating revenue for 2023 was RMB 3,212.2 billion, down from RMB 3,318.2 billion in 2022[55] - The company's operating income was RMB 86.8 billion, a year-on-year increase of 14.5%, attributed to increased processing volume and improved operational efficiency[52] - The refining division's external sales revenue was RMB 1,927.3 billion, accounting for 60.0% of total revenue, a year-on-year increase of 3.9% driven by higher sales volumes of refined products[53] - The marketing and distribution segment achieved a revenue of RMB 1,818.429 billion, an increase of 6.1% year-on-year[84] Cash Flow and Assets - The net cash flow from operating activities increased by 38.9% to RMB 161,475 million from RMB 116,269 million in 2022[5] - The total assets as of December 31, 2023, were RMB 2,026,674 million, an increase of 3.9% from RMB 1,951,121 million in 2022[5] - The company's total assets at the end of 2023 were RMB 2,026.674 billion, an increase of RMB 75.553 billion from the end of 2022[82] - The company's cash and cash equivalents at the end of 2023 were RMB 121.8 billion[72] - The company's total liabilities were RMB 1,068.9 billion, an increase of RMB 57.3 billion from the previous year, with current liabilities decreasing by RMB 20.3 billion[71] Dividends and Shareholder Returns - The company plans to distribute a final cash dividend of RMB 0.2 per share, in addition to the interim dividend of RMB 0.145 per share, totaling RMB 0.345 per share for 2023[3] - The company maintains a high level of cash dividends and has implemented a new round of share buybacks to enhance shareholder value[87] - The company's dividend distribution policy is disclosed in the annual report, emphasizing the importance of shareholder returns[116] Debt and Financial Ratios - The company reported a total debt of RMB 1,068,019 million, with a debt-to-asset ratio of 52.70%[6] - The weighted average return on equity for 2023 was 7.59%, down from 8.57% in 2022[6] - The company's return on equity for 2023 was 7.26%, down from 8.50% in 2022[11] Operational Highlights - The company achieved a kerosene production increase of 60.7% year-on-year, reaching 28.95 million tons in 2023[33] - The total crude oil processing volume for the year was 257.52 million tons, a 6.3% increase from 242.27 million tons in 2022[33] - The production of refined oil products reached 156 million tons, reflecting an 11.3% increase from 140.15 million tons in 2022[33] - The company reported a significant increase in cash flow from operating activities, indicating a robust financial position[15] Research and Development - Research and development expenses for 2023 amounted to RMB 23.2 billion, with RMB 14 billion in expenses and RMB 9.2 billion in investments[74] - The company applied for 9,601 patents in 2023 and received 5,483 patent grants, showcasing its commitment to innovation[38] Governance and Compliance - Sinopec's governance practices align with the latest regulatory requirements, achieving an A-level rating for information disclosure from the Shanghai Stock Exchange[87] - The company has established a whistleblowing mechanism, allowing employees and other stakeholders to report concerns anonymously through various channels[112] - The board of directors has confirmed compliance with the standards of conduct throughout the reporting period, reinforcing governance practices[101] Environmental and Sustainability Initiatives - The company is committed to sustainable development, actively addressing climate change and promoting clean energy initiatives[16] - In 2023, Sinopec reduced greenhouse gas emissions by 2.24 million tons of CO2 equivalent and recovered 1.749 million tons of CO2[154] - The company achieved a 4.3% year-on-year reduction in COD discharge and a 5% reduction in sulfur dioxide emissions[153] Future Outlook and Strategic Plans - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 18%[126] - The company plans to increase exploration investments to solidify its oil and gas resource base, with exploration expenses rising to RMB 11.1 billion, a year-on-year increase of 4.4%[52] - The company plans to expand its overseas business and develop low-sulfur marine fuel markets, aiming to become the second-largest supplier globally[34]