Sinopec Corp.(00386)2024-03-24 10:11Financial 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].