Financial Performance - The net profit attributable to the parent company's shareholders for 2020 was RMB 628,110 thousand, while the net profit according to IFRS was RMB 645,072 thousand[6]. - The company's net sales for 2020 were RMB 61,560.9 million, a decrease from RMB 88,055.7 million in 2019, representing a decline of approximately 30%[11]. - The company's profit before tax for 2020 was RMB 590.8 million, down from RMB 2,656.1 million in 2019, indicating a decrease of about 77.8%[11]. - The net profit attributable to shareholders for 2020 was RMB 645.1 million, a significant drop from RMB 2,215.7 million in 2019, reflecting a decline of approximately 70.9%[11]. - The total operating income for 2020 was RMB 74,705.2 million, down 25.55% from RMB 100,346.0 million in 2019[14]. - The net cash flow from operating activities for 2020 was RMB 1,751.2 million, a decrease of 65.80% compared to RMB 5,121.2 million in 2019[14]. - The total assets as of the end of 2020 were RMB 44,749.2 million, a slight decrease of 1.94% from RMB 45,636.1 million at the end of 2019[14]. - The net assets attributable to shareholders at the end of 2020 were RMB 29,218.0 million, down 2.23% from RMB 29,885.3 million at the end of 2019[14]. - Basic earnings per share decreased by 71.71% to RMB 0.058 from RMB 0.205 in the previous year[15]. - The weighted average return on equity dropped by 5.02 percentage points to 2.127% from 7.143% in the previous year[15]. - Net profit for the year under Chinese accounting standards was RMB 639,436 thousand, down from RMB 2,225,153 thousand in the previous year[16]. - The company's total sales revenue for the year 2020 was RMB 61,560.9 million, a decrease from RMB 88,055.7 million in 2019[66]. - The net profit for the year 2020 was RMB 656.4 million, down from RMB 2,227.1 million in 2019[66]. Dividends and Shareholder Information - The proposed final dividend for 2020 is RMB 0.1 per share (including tax), pending approval at the annual general meeting[6]. - The company plans to distribute dividends to H-share shareholders around July 20, 2021, based on the shareholder registry as of June 28, 2021[166]. - The total number of ordinary shareholders increased to 87,627 by the end of the reporting period, up from 86,305 at the end of the previous month[25]. - The top ten shareholders hold a total of 5,460,000,000 shares, representing 50.44% of the total shares outstanding[26]. - Hong Kong Central Clearing (Agent) Limited holds 3,453,881,030 shares, accounting for 31.91% of the total shares[33]. - China Petroleum & Chemical Corporation is the controlling shareholder, holding 82,709,227,393 shares, which is 68.31% of the total shares[29]. Operational Highlights - The company aims to enhance its operational efficiency and is focused on becoming a "domestically leading, world-class" energy and chemical company[9]. - The company has a strong market presence in East China, which is one of the fastest-growing regions in China for petrochemical products[9]. - The company is actively adjusting its product structure and improving the quality and variety of existing products to meet the growing market demand for petrochemical products in China[9]. - The company produced over 60 different products, with a significant portion used in downstream production[20]. - The company achieved a product sales rate of 100.11% and a receivables collection rate of 100%[52]. - The overall operation of the company's facilities was stable, with a facility stability rate of 98%, an increase of 0.36 percentage points[51]. - The company implemented effective pandemic prevention measures, ensuring zero input, zero spread, and zero infection[50]. Market and Economic Conditions - In 2020, the average price of WTI crude oil was $39.51 per barrel, a decrease of 30.7% year-on-year; Brent crude averaged $41.74 per barrel, down 35.1%[54]. - The company anticipates that global economic recovery will drive an increase in oil demand, despite challenges from geopolitical tensions and supply pressures[126]. - The company faces risks from the cyclical nature of the oil and petrochemical markets, which can significantly impact its operating performance due to price volatility[134]. - The company relies on imported crude oil for over 95% of its production, exposing it to procurement risks and potential cost increases due to fluctuating oil prices[135]. Environmental and Social Responsibility - The company published its 2020 Corporate Social Responsibility report, detailing its efforts in environmental, social, and governance aspects[184]. - The company achieved a 100% compliance rate for wastewater discharge and hazardous waste disposal in 2020[186]. - Total emissions of sulfur dioxide, nitrogen oxides, and volatile organic compounds decreased by 4.74%, 3.37%, and 7.50% year-on-year, respectively[186]. - The company has been recognized as a "Green Enterprise" in 2020, maintaining its status from previous years[185]. - The company has implemented a comprehensive environmental monitoring plan covering seven areas, including water quality and air quality[190]. Governance and Management - The company has maintained its accounting firm, PwC Zhong Tian, for 8 years, with an audit fee of RMB 4,800,000 for domestic services and RMB 3,000,000 for international services[172]. - The company has a focus on strategic development within the chemical industry, as evidenced by Wu Haijun's various roles in related organizations[200]. - The company has seen a significant turnover in its board members, with several directors and supervisors stepping down after the annual general meeting on June 18, 2020[199]. - The company’s strategic committee is chaired by Wu Haijun, who also serves on the nomination committee, indicating a strong leadership role in corporate governance[200]. Risks and Challenges - The company may encounter challenges from stricter environmental regulations that could lead to additional costs[137]. - Currency fluctuations, particularly the depreciation of the RMB, could adversely affect the company's costs and profitability due to its foreign currency transactions[138]. - The company faces risks if Sinopec Limited refuses to conduct transactions or modifies agreements unfavorably, potentially impacting business operations[139]. - The company is subject to stringent environmental policies, including the prohibition and restriction of certain plastic products, which may affect operational costs[141].

Financial Performance - Operating revenue increased by 13.68% to CNY 20,379,079,000 year-on-year[4] - Net profit attributable to shareholders was CNY 1,173,484,000, a significant increase of 197.60% compared to a loss of CNY 1,202,367,000 in the same period last year[4] - Basic earnings per share rose to CNY 0.108, a 197.30% increase from a loss of CNY 0.111 per share in the same period last year[4] - Operating profit reached RMB 1,504,446 thousand, a significant improvement from a loss of RMB 1,629,144 thousand in the same period last year, driven by increased market demand and rising product prices in the petrochemical sector[10] - Net profit for Q1 2021 reached 1,175,274 thousand RMB, compared to a net loss of 1,201,386 thousand RMB in the same period last year[18] - Total comprehensive income for Q1 2021 was 1,177,086 thousand RMB, compared to a loss of 1,296,643 thousand RMB in Q1 2020[18] Cash Flow and Liquidity - Net cash flow from operating activities improved by 91.69%, reaching CNY -322,532,000, compared to CNY -3,880,619,000 in the previous year[4] - Cash and cash equivalents were reported at RMB 2,445,906 thousand, down from RMB 7,920,852 thousand, indicating a significant liquidity contraction[13] - Cash flow from operating activities showed a net outflow of 322,532 thousand RMB, an improvement from a net outflow of 3,880,619 thousand RMB in Q1 2020[21] - The net cash flow from operating activities for Q1 2021 was -79,233 thousand RMB, an improvement from -3,535,136 thousand RMB in Q1 2020[22] - The ending cash and cash equivalents balance was 721,530 thousand RMB, down from 3,220,539 thousand RMB in Q1 2020[22] Assets and Liabilities - Total assets decreased by 2.96% to CNY 43,426,055,000 compared to the end of the previous year[4] - Total current assets decreased to RMB 15,923,801 thousand from RMB 17,304,843 thousand, primarily due to a reduction in cash and cash equivalents[13] - Total liabilities decreased to RMB 12,873,813 thousand from RMB 15,394,155 thousand, reflecting improved financial health[14] - Shareholders' equity increased to RMB 30,552,242 thousand from RMB 29,355,018 thousand, indicating growth in the company's net worth[14] Accounts Receivable and Inventory - Accounts receivable increased by 86.58% to CNY 2,137,277,000 due to higher product sales[9] - Inventory increased by 28.39% to CNY 4,992,585,000, influenced by rising international oil prices[9] - Accounts receivable increased to RMB 2,137,277 thousand from RMB 1,145,504 thousand, reflecting higher sales volume[13] - Inventory rose to RMB 4,992,585 thousand from RMB 3,888,746 thousand, suggesting increased stock levels in anticipation of future demand[13] Investment and Subsidies - Investment income increased to RMB 254,544 thousand, up 226.41% from RMB 77,983 thousand in the previous year, due to improved operating conditions of joint ventures[10] - The company received government subsidies amounting to CNY 8,384,000 during the reporting period[5] Shareholder Information - The total number of shareholders at the end of the reporting period was 90,971[6]

Financial Performance - Operating revenue increased by 13.68% to CNY 20,379,079,000 year-on-year[4] - Net profit attributable to shareholders was CNY 1,173,484,000, a significant increase of 197.60% compared to a loss of CNY 1,202,367,000 in the same period last year[4] - Basic earnings per share rose to CNY 0.108, a 197.30% increase from a loss of CNY 0.111 per share in the previous year[4] - Operating profit reached RMB 1,504,446 thousand, a significant improvement from a loss of RMB 1,629,144 thousand in the same period last year, driven by increased market demand and rising product prices in the petrochemical sector[10] - Net profit for Q1 2021 reached 1,175,274 thousand RMB, compared to a net loss of 1,201,386 thousand RMB in Q1 2020, marking a turnaround[18] - Total comprehensive income for Q1 2021 was 1,177,086 thousand RMB, a recovery from a loss of 1,296,643 thousand RMB in Q1 2020[18] Cash Flow and Liquidity - Net cash flow from operating activities improved by 91.69%, reaching CNY -322,532,000, compared to CNY -3,880,619,000 in the previous year[4] - Cash and cash equivalents dropped to RMB 2,445,906 thousand from RMB 7,920,852 thousand, indicating a significant liquidity contraction[13] - Cash flow from operating activities showed a net outflow of 322,532 thousand RMB in Q1 2021, an improvement from a net outflow of 3,880,619 thousand RMB in Q1 2020[21] - The net cash flow from operating activities was -79,233 thousand RMB, an improvement from -3,535,136 thousand RMB in Q1 2020[22] - The ending cash and cash equivalents balance was 721,530 thousand RMB, a decrease from 3,220,539 thousand RMB in the previous year[22] Assets and Liabilities - Total assets decreased by 2.96% to CNY 43,426,055,000 compared to the end of the previous year[4] - Total current assets decreased to RMB 15,923,801 thousand from RMB 17,304,843 thousand, primarily due to a reduction in cash and cash equivalents[13] - Total liabilities decreased to RMB 12,873,813 thousand from RMB 15,394,155 thousand, reflecting improved financial health[14] - Shareholders' equity increased to RMB 30,552,242 thousand from RMB 29,355,018 thousand, indicating growth in the company's net worth[14] Sales and Inventory - Accounts receivable increased by 86.58% to CNY 2,137,277,000 due to higher product sales[9] - Inventory increased by 28.39% to CNY 4,992,585,000, influenced by rising international oil prices[9] - Accounts receivable increased to RMB 2,137,277 thousand from RMB 1,145,504 thousand, reflecting higher sales volume[13] - Inventory rose to RMB 4,992,585 thousand from RMB 3,888,746 thousand, suggesting increased stock levels in anticipation of future demand[13] - Total cash inflow from sales of goods and services was 18,056,480 thousand RMB, an increase from 15,998,915 thousand RMB, marking a growth of about 6.6%[22] Investment and Subsidies - Investment income increased to RMB 254,544 thousand, up 226.41% from RMB 77,983 thousand in the previous year, due to improved operating conditions of joint ventures[10] - The company received government subsidies amounting to CNY 8,384,000 during the reporting period[5] Research and Development - Research and development expenses increased to 12,236 thousand RMB in Q1 2021, up from 6,071 thousand RMB in Q1 2020, reflecting a focus on innovation[18] Shareholder Information - The total number of shareholders at the end of the reporting period was 90,971[6]

Financial Performance - The net profit attributable to the parent company's shareholders for 2020 was RMB 628,110 thousand, while the net profit according to International Financial Reporting Standards was RMB 645,072 thousand[4]. - The total profit for 2020 was RMB 573,816,000, a decline of 78.38% from RMB 2,654,116,000 in 2019[13]. - The net profit attributable to shareholders of the parent company was RMB 628,110,000, down 71.63% from RMB 2,213,716,000 in the previous year[13]. - The company's total sales revenue for 2020 was RMB 61,560.9 million, a decrease of 30.09% compared to RMB 88,055.7 million in 2019[39]. - The company's net profit for the year was RMB 656.4 million, a decrease from RMB 2,227.1 million in 2019[40]. - The net profit after tax for 2020 was RMB 0.656 billion, down from RMB 2.2271 billion in the previous year, reflecting a decrease of RMB 1.5707 billion[56]. - The company's total revenue for the year 2020 was 1,029.78 million, reflecting a year-on-year increase of 65.74%[167]. - The company reported a net profit margin of 88.19% for the fiscal year 2020[167]. Dividends and Shareholder Returns - The proposed final dividend for 2020 is RMB 0.1 per share (including tax), pending approval at the annual general meeting[4]. - The cash dividend payout ratio for 2020 was 172.32% of the net profit attributable to shareholders[120]. - The company plans to maintain a cash dividend of no less than 30% of the net profit for the year under normal operating conditions[118]. - The board of directors has approved a dividend payout of 2 billion RMB, reflecting the company's strong financial performance and commitment to returning value to shareholders[180]. Revenue and Sales - In 2020, the company's operating revenue decreased by 25.55% to RMB 74,705,183,000 compared to RMB 100,346,048,000 in 2019[13]. - The total operating revenue for Q4 2020 was RMB 19,751,215 thousand, with a total annual revenue of RMB 746.24 billion, a decrease of 25.58% compared to the previous year[17][24]. - The sales revenue for synthetic fibers in 2020 was RMB 1,472.4 million, down 31.80% from RMB 2,158.9 million in 2019, with a sales volume decrease of 14.91%[40]. - The sales revenue for resins and plastics was RMB 9,419.7 million, a decline of 5.61% from RMB 9,979.9 million in 2019, while sales volume increased by 5.65%[40]. - The sales revenue for intermediate petrochemical products was RMB 8,205.8 million, down from RMB 10,313.6 million in 2019, reflecting a significant market downturn[38]. - The petroleum products segment generated sales revenue of RMB 30,139.6 million, accounting for 49.0% of total sales, with a loss of RMB 2,198.7 million in this segment[38]. Operating Costs and Expenses - The total sales cost and expenses for 2020 were RMB 62.0271 billion, a decrease of 28.49% from RMB 86.7352 billion in 2019, driven by a significant drop in crude oil prices[42]. - The total operating cost for 2020 was RMB 590,891 million, a reduction of 29.47% from RMB 837,810 million in 2019, primarily due to lower international oil prices and reduced procurement[72]. - The company's financial expenses decreased by 3.08% to RMB -337.459 million in 2020, compared to RMB -348.181 million in 2019[68]. Cash Flow - The net cash flow from operating activities decreased by 65.80% to RMB 1,751,217,000 from RMB 5,121,209,000 in 2019[13]. - The company's cash flow from operating activities decreased by 65.80% to RMB 1.751 billion in 2020, down from RMB 5.121 billion in 2019[68]. - The company's investment activities resulted in a net cash outflow of RMB 3.888 billion in 2020, a decrease of 15.91% from RMB 4.623 billion in 2019[68]. Assets and Liabilities - The company's total assets at the end of 2020 were RMB 44,749,173,000, a decrease of 1.94% from RMB 45,636,128,000 at the end of 2019[13]. - The net asset attributable to shareholders of the parent company was RMB 29,218,033,000, down 2.23% from RMB 29,885,341,000 at the end of 2019[13]. - The asset-liability ratio increased to 34.401% from 34.228% in the previous year[13]. - The total borrowings at the end of 2020 increased slightly to RMB 1.548 billion, reflecting a minor increase of RMB 0.0004 billion from the previous year[58]. - The debt-to-asset ratio as of December 31, 2020, was 34.25%, compared to 34.07% in 2019, indicating a slight increase in leverage[59]. Operational Efficiency - The company processed 14,671,500 tons of crude oil in 2020, a decrease of 3.47% year-on-year, while the production of refined oil was 8,379,500 tons, down 8.84% year-on-year[24]. - The overall equipment operation rate for the company was 98% in 2020, an increase of 0.36 percentage points from the previous year[24]. - The average thermal efficiency of heating furnaces was 92.46%, remaining stable compared to the previous year[29]. - The company achieved a product sales rate of 100.11% and a receivables turnover rate of 100% in 2020, maintaining stable product quality[24]. Research and Development - The company's R&D expenses increased to RMB 110.625 million in 2020, up 19% from RMB 92.964 million in 2019, primarily due to increased investment in carbon fiber projects[60]. - Research and development expenses totaled RMB 395,292 million, accounting for 0.53% of operating revenue, with 72.01% of R&D expenditures capitalized[76]. - The company is focused on research and development innovations to enhance its product offerings and production processes[105]. Market Position and Strategy - The company is strategically positioned in the rapidly developing East China region, which is a key market for petrochemical products[19][20]. - The company aims to optimize its product structure and improve production technology to enhance resource utilization and efficiency[20]. - The company plans to focus on market expansion and new product development to recover from the downturn in sales[39]. - The company is actively pursuing the development of high-value-added products in the new materials industry, particularly focusing on carbon fiber and related materials[92]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 2 billion RMB allocated for potential mergers and acquisitions[175]. Environmental and Regulatory Compliance - The company has implemented effective pandemic prevention measures, ensuring production continuity while supporting national efforts against COVID-19[23]. - The company achieved a 100% compliance rate for wastewater discharge and a 100% compliance rate for controlled waste gas emissions[137]. - The company successfully maintained its "Green Enterprise" title and completed 27 grassroots green initiatives in 2020[136]. - The company is adapting to stricter environmental regulations and policies aimed at reducing plastic pollution and enhancing safety in chemical production[100]. Shareholder Structure and Governance - The company's majority shareholder, Sinopec Corp., holds 50.44% of the shares, which may influence the company’s operational and financial decisions[98]. - The report indicates that the total number of shares held by Wellington Management Singapore Pte. Ltd. amounts to 275,543,182 shares of H shares (long position) and 404 shares of H shares (short position)[163]. - The report highlights the complexity of ownership structures among major shareholders, particularly for BlackRock and Citigroup[162]. Employee and Management Information - The total number of employees in the group is 8,466, with 5,094 in production, 2,136 in technology, and 1,066 in administration[193]. - Total employee compensation for the group during the reporting period was RMB 3,143.22 million[194]. - The total pre-tax remuneration for the chairman, Wu Haijun, is reported at RMB 120.22 million for the period[166].

Financial Performance - Net profit attributable to shareholders was CNY -642,219, representing a decline of 138.41% year-on-year[5]. - Operating revenue for the first nine months was CNY 54,953,968, down 27.09% from the same period last year[5]. - The company's net profit for the third quarter of 2020 was a loss of CNY 632,549,000, representing a decline of 136.94% compared to a profit of CNY 1,712,502,000 in the same quarter of 2019[13]. - Basic earnings per share were CNY -0.059, a decrease of 140.97% year-on-year[5]. - Total operating revenue for Q3 2020 was CNY 19,290,616 thousand, a decrease of 17.8% compared to CNY 23,377,016 thousand in Q3 2019[20]. - The company reported a significant reduction in cash and cash equivalents, which decreased to CNY 3,113,935 thousand from CNY 7,263,279 thousand year-over-year[17]. - The total comprehensive income for Q3 2020 was CNY 957,963 thousand, compared to CNY 414,214 thousand in Q3 2019, showing a positive trend[23]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 44,941,275, a decrease of 1.52% compared to the end of the previous year[5]. - The total assets as of September 30, 2020, were CNY 44,941,275,000, a slight decrease from CNY 45,636,128,000 at the end of 2019[15]. - The company’s total liabilities as of September 30, 2020, were CNY 27,553,425,000, reflecting a decrease from CNY 28,309,163,000 at the end of 2019[15]. - Current liabilities totaled CNY 15,358,975 thousand, up from CNY 13,593,431 thousand in the previous year, indicating a 13% increase[19]. - The total liabilities increased to CNY 15,487,062 thousand from CNY 13,732,296 thousand, marking an increase of 12.8%[19]. - The company's equity attributable to shareholders decreased to CNY 27,364,401 thousand from CNY 29,510,906 thousand, a decline of 7.3%[19]. Cash Flow - The net cash flow from operating activities was CNY -2,114,789, an increase of 410.04% compared to the previous year[5]. - The cash flow from operating activities showed a net outflow of CNY 2,114,789,000, a 410.04% increase in outflow compared to CNY -414,628,000 in the same period last year[13]. - The net cash flow from financing activities improved to 3,139,939 thousand, compared to a negative (2,240,618) thousand in the same period last year[27]. - Cash inflow from financing activities totaled 6,396,576 thousand, an increase from 3,700,000 thousand year-over-year[27]. - The cash outflow from financing activities decreased to 3,256,637 thousand from 5,940,618 thousand year-over-year[27]. - The cash and cash equivalents net decrease was (3,645,175) thousand, an improvement from (5,841,930) thousand in the previous year[27]. Research and Development - The company reported a significant increase in research and development expenses, which rose by 99.98% to CNY 56,596,000, driven by increased investment in carbon fiber research projects[12]. - Research and development expenses for Q3 2020 were CNY 11,068 thousand, an increase from CNY 7,922 thousand in Q3 2019, reflecting a 39% rise[20]. - Research and development expenses for Q3 2020 were CNY 7,926 thousand, up from CNY 5,823 thousand in Q3 2019, indicating a focus on innovation[22]. Shareholder Information - The total number of shareholders at the end of the reporting period was 92,829[7]. - The largest shareholder, Sinopec Limited, held 50.44% of the shares[7].

Financial Performance - Net profit attributable to shareholders was CNY -642,219, representing a decline of 138.41% year-on-year[5]. - Operating revenue for the first nine months was CNY 54,953,968, down 27.09% from the same period last year[5]. - Basic earnings per share were CNY -0.059, a decrease of 140.97% year-on-year[5]. - The company reported a loss from non-recurring items of CNY -823,377 for the first nine months[5]. - The company expects a significant decline in cumulative net profit for 2020 due to the ongoing impact of the global pandemic and fluctuations in international oil prices[13]. - The company's net profit for the third quarter of 2020 was a loss of CNY 632,549,000, representing a decline of 136.94% compared to a profit of CNY 1,712,502,000 in the same quarter of 2019[13]. - Total operating revenue for Q3 2020 was CNY 19,290,616, a decrease of 17.8% compared to CNY 23,377,016 in Q3 2019[20]. - Net profit for Q3 2020 reached CNY 1,075,769, compared to CNY 568,785 in Q3 2019, representing an increase of 89%[20]. - The total comprehensive income for Q3 2020 was CNY 957,963 thousand, up from CNY 414,214 thousand in the same period last year[23]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 44,941,275, a decrease of 1.52% compared to the end of the previous year[5]. - The total assets as of September 30, 2020, were CNY 44,941,275,000, slightly down from CNY 45,636,128,000 at the end of 2019[15]. - The total assets of the company as of the end of Q3 2020 were CNY 1,077,017 thousand, compared to CNY 568,785 thousand at the end of Q3 2019[22]. - The company’s total liabilities increased, with short-term borrowings rising to CNY 3,040,000,000 from CNY 1,547,600,000, reflecting increased financing needs[15]. - Current liabilities totaled CNY 15,358,975, an increase from CNY 13,593,431 in the previous year[19]. - The total liabilities increased to CNY 15,487,062 from CNY 13,732,296 year-over-year[19]. - The equity attributable to shareholders decreased to CNY 27,364,401 from CNY 29,510,906 in the previous year[19]. Cash Flow - The net cash flow from operating activities for the first nine months was CNY -2,114,789, an increase of 410.04% compared to the previous year[5]. - The cash flow from operating activities showed a net outflow of CNY 2,114,789,000, a 410.04% increase in outflow compared to CNY -414,628,000 in the same period last year[13]. - The company reported a net cash flow from operating activities of CNY (2,114,789) thousand for the first nine months of 2020, compared to CNY (414,628) thousand in the same period of 2019[24]. - Cash inflow from investment activities for the first nine months of 2020 was CNY 10,491,738 thousand, an increase from CNY 6,489,820 thousand in 2019[24]. - The company incurred total cash outflow from investment activities of CNY 15,477,651 thousand in Q3 2020, compared to CNY 9,316,312 thousand in Q3 2019[25]. - The financing activities generated a net cash flow of CNY 3,123,031 thousand in Q3 2020, compared to a net cash outflow of CNY (2,265,390) thousand in Q3 2019[25]. - The net increase in cash and cash equivalents was (3,645,175), compared to (5,841,930) in the previous period[27]. - The ending balance of cash and cash equivalents was 2,109,265, up from 1,277,083 in the previous period[27]. Shareholder Information - The total number of shareholders at the end of the reporting period was 92,829[7]. - The largest shareholder, Sinopec Limited, held 50.44% of the shares[7]. Research and Development - The company reported a significant increase in research and development expenses, which rose by 99.98% to CNY 56,596,000, driven by increased investment in carbon fiber research projects[12]. - Research and development expenses for Q3 2020 were CNY 11,068, up from CNY 7,922 in Q3 2019, indicating a focus on innovation[20]. Inventory and Operating Costs - Inventory decreased by 25.30% to CNY 5,045,633,000 from CNY 6,754,434,000, influenced by the pandemic and falling oil prices[11]. - The company’s total operating costs for Q3 2020 were CNY 18,151,906, reflecting a significant reduction compared to CNY 23,065,995 in Q3 2019[20]. - The company reported a decrease in operating costs to CNY 10,949,967 thousand in Q3 2020 from CNY 15,580,341 thousand in Q3 2019, reflecting a cost reduction strategy[22].

Financial Performance - Operating revenue for the first half of 2020 was RMB 35,663,352, a decrease of 31.41% compared to RMB 51,992,583 in the same period last year[12]. - The total profit (loss) for the period was a loss of RMB 2,354,618, representing a decline of 273.23% from a profit of RMB 1,359,243 in the previous year[12]. - Net loss attributable to shareholders of the parent company was RMB 1,716,072, a decrease of 250.90% compared to a profit of RMB 1,137,241 in the same period last year[12]. - The net cash flow from operating activities was a negative RMB 2,904,221, a significant decline from a positive cash flow of RMB 245,974 in the previous year[12]. - Total assets at the end of the reporting period were RMB 42,307,625, down 7.29% from RMB 45,636,128 at the end of the previous year[12]. - Net assets attributable to shareholders of the parent company decreased by 9.97% to RMB 26,905,393 from RMB 29,885,341 at the end of the previous year[12]. - Basic loss per share for the period was RMB -0.159, compared to earnings of RMB 0.105 in the same period last year, a decrease of 251.43%[14]. - The weighted average return on net assets was -6.588%, a decrease of 10.26 percentage points from 3.676% in the previous year[14]. - The company reported a total revenue of RMB 35.6276 billion for the first half of 2020, a decrease of RMB 16.3276 billion or 31.43% year-on-year[28]. - The pre-tax loss for the period was RMB 2.3094 billion, compared to a pre-tax profit of RMB 1.3656 billion in the same period last year, representing a decrease of RMB 3.6749 billion[28]. - The net loss attributable to shareholders after tax and non-controlling interests was RMB 1.6708 billion, down RMB 2.8144 billion from a profit of RMB 1.1436 billion in the previous year[28]. Industry Overview - The petrochemical industry in China experienced a total revenue of RMB 5.1 trillion in the first half of 2020, a year-on-year decline of 11.9%[22]. - The total profit for the petrochemical industry was RMB 141.6 billion, a year-on-year decrease of 58.8%[22]. - The oil and gas sector reported a profit of RMB 28 billion, down 72.2% year-on-year, while the refining sector incurred a loss of RMB 24.4 billion[22]. Operational Efficiency - The company aims to optimize product structure and improve product quality and variety to enhance operational efficiency[25]. - The company is located in the economically active Yangtze River Delta region, which provides a competitive advantage in logistics and transportation[25]. - The total production volume for the first half of 2020 was 6.6531 million tons, a decrease of 3.27% compared to the same period last year[30]. - The sales revenue for the first half of 2020 was RMB 29.9258 billion, a decline of 35.12% year-on-year, with significant drops in various segments due to oil price fluctuations and the pandemic[39]. - The production of aviation kerosene decreased by 31.08% year-on-year, while the production of synthetic resin and plastics increased by 4.83%[30]. - The company achieved a product sales rate of 100.45% and a cash collection rate of 100.00% during the first half of the year[30]. Environmental Compliance - The company reported a 100% compliance rate for wastewater discharge standards, with reductions in emissions of COD, ammonia nitrogen, SO2, and NOX by 10.69%, 8.16%, 10.76%, and 11.61% respectively[31]. - The company has completed the ultra-low emission transformation of all boilers in the thermal power department by November 2018, meeting the emission standards set by local regulations[122]. - The company has received multiple environmental certifications, including the "China Petrochemical Green Enterprise" title in December 2019[121]. - The company is actively promoting green development and has implemented various environmental action plans, including the "Seventh Round Environmental Protection Three-Year Action Plan"[119]. Financial Position - The group's total borrowings increased by RMB 1.4824 billion to RMB 3.030 billion as of June 30, 2020, primarily due to an increase in short-term debt[46]. - The group's capital expenditure in the first half of 2020 was RMB 417 million, mainly for various environmental and infrastructure projects[47]. - The group's financial net income for the first half of 2020 was RMB 151 million, down from RMB 213.7 million in the same period last year[43]. - The group's asset-liability ratio as of June 30, 2020, was 35.92%, compared to 34.07% on June 30, 2019[48]. - The company's cash and cash equivalents decreased by 56.80% to RMB 3,869,936 thousand as of June 30, 2020, primarily due to a significant decline in gross profit from product sales[71]. Strategic Initiatives - The company plans to launch a new 400,000 tons/year clean gasoline blending unit by the end of August 2020, aiming to optimize product structure and increase production of high-value-added products[56]. - Research and development expenses increased by 122.31% to RMB 47,528, driven by projects related to carbon fiber quality improvement and large tow preparation industrialization[63]. - The company is focusing on strategic transformation and upgrading, particularly in the production of new materials and high-end materials, to create new growth points[56]. - The company is actively involved in the construction of the "Hydrogen Source Carbon Valley" as part of the Yangtze River Delta Hydrogen Corridor Development Plan[56]. Risks and Challenges - The company has highlighted potential risks in its report, advising investors to be cautious regarding investment risks[8]. - The company faced risks from the cyclical nature of the oil and petrochemical market, which could adversely affect its operations and financial performance[80]. - The company imports over 95% of the crude oil required for production, exposing it to procurement risks and the inability to fully pass on cost increases to customers[81]. - Fluctuations in the RMB exchange rate against the USD and other currencies may adversely affect the company's business and financial results[86]. Shareholder Information - The controlling shareholder, Sinopec Corp, holds 50.44% of the company's total shares, which may influence the company's operations and financial decisions[88]. - The company has a total of 5,460,000,000 A-shares, which constitutes 74.50% of the total issued A-shares[142]. - The report indicates no related party relationships among the major shareholders[138]. - The company continues to engage in related party transactions with its controlling shareholder, which may impact its business and economic benefits[87].

Financial Performance - The company's operating revenue for the first half of the year was RMB 35,663,352, a decrease of 31.41% compared to RMB 51,992,583 in the same period last year[10]. - The total profit (loss) for the period was a loss of RMB 2,354,618, representing a decline of 273.23% from a profit of RMB 1,359,243 in the previous year[10]. - The net loss attributable to shareholders was RMB 1,716,072, a decrease of 250.90% compared to a profit of RMB 1,137,241 in the same period last year[10]. - The company's net cash flow from operating activities was a negative RMB 2,904,221, a significant decline from a positive RMB 245,974 at the end of the previous year[10]. - The company's total assets decreased by 7.29% to RMB 42,307,625 from RMB 45,636,128 in the previous year[10]. - The company's consolidated revenue for the six months ended June 30, 2020, was RMB 35,663,352 thousand, a decrease of 31.4% compared to RMB 51,992,583 thousand in the same period of 2019[93]. - The consolidated operating loss for the same period was RMB 2,336,110 thousand, compared to a profit of RMB 1,364,696 thousand in the prior year, indicating a significant decline in performance[93]. - The total comprehensive loss for the six months ended June 30, 2020, was RMB 1,717,574 thousand, compared to a comprehensive income of RMB 1,140,050 thousand in the same period of 2019[93]. Industry Context - The petrochemical industry experienced a revenue decline of 11.9% in the first half of the year, with total profits down 58.8%[13]. - The company expects the petrochemical industry to perform better in the second half of the year, despite ongoing challenges from the COVID-19 pandemic and international trade tensions[14]. - The company is located in the economically active Yangtze River Delta region, which is a key area for petrochemical product demand in China[15]. Operational Highlights - The company achieved a product sales rate of 100.45% and a cash collection rate of 100.00% during the first half of 2020[16]. - The company produced 10,452 tons of meltblown fabric for masks, contributing to pandemic response efforts[16]. - The company completed 12 sets of refinery safety and environmental maintenance with successful startup, maintaining overall stable operations[16]. - The company has made significant progress in optimizing its product structure and reducing costs, with 34 out of 58 monitored technical and economic indicators performing better than the previous year[17]. Financial Position - The company's total borrowings increased by RMB 14.824 billion to RMB 30.300 billion by the end of June 2020[22]. - The company's debt-to-asset ratio as of June 30, 2020, was 35.92%, up from 34.07% a year earlier[25]. - As of June 30, 2020, cash and cash equivalents amounted to RMB 3,869,936 thousand, a decrease of 56.80% compared to RMB 8,958,538 thousand on December 31, 2019[35]. - The company's retained earnings as of June 30, 2020, were RMB 8,443,345 thousand, a decrease from RMB 12,481,733 thousand at the beginning of the year, reflecting a decline of 32.1%[98]. Risk Factors - The company faces risks from cyclical fluctuations in the oil and petrochemical markets, which could adversely affect its operations and financial performance[40]. - Over 95% of the crude oil required for production is imported, exposing the company to procurement risks and potential cost increases due to price volatility[41]. - The company is subject to strict environmental regulations, which may lead to additional expenditures if new, stricter standards are implemented[43]. Corporate Governance - The board of directors has confirmed the accuracy and completeness of the financial report, with all directors present at the meeting[2]. - The company has not changed its accounting firm during the reporting period[50]. - The company confirmed that all directors and supervisors complied with the Securities Trading Code during the reporting period[90]. Environmental Compliance - The company reported a 100% compliance rate for wastewater discharge during the first half of 2020, with reductions in emissions of COD, ammonia nitrogen, SO2, and NOx by 10.69%, 8.16%, 10.76%, and 11.61% respectively[16]. - The company is classified as a key monitored pollution enterprise by the Ministry of Ecology and Environment, and has publicly disclosed pollution points and concentrations[62]. - The company has conducted 13,294 water quality monitoring tests and 4,047 air and waste gas monitoring tests in the first half of 2020, achieving a compliance rate of 100%[67]. Research and Development - Research and development expenses increased by 122.31% to RMB 47,528, focusing on carbon fiber quality improvement and large tow preparation industrialization projects[32]. - The company filed 30 patent applications and received 17 patent grants in the first half of 2020, focusing on key technologies for carbon fiber and lightweight materials[17]. Shareholder Information - The controlling shareholder, Sinopec Corp., holds 50.44% of the company's shares, which may influence the company's operational and financial decisions[46]. - The largest shareholder, China Petroleum & Chemical Corporation, holds 5,460,000,000 A shares, representing 50.44% of the total shares[71]. - The company maintains a diverse shareholder base with significant institutional ownership, including major investment firms like BlackRock and The Bank of New York Mellon[74][75].

Financial Performance - Net profit attributable to shareholders was CNY -1,202,367,000, a decrease of 296.90% year-on-year[4] - Operating revenue fell by 28.68% to CNY 17,926,384,000 compared to the same period last year[4] - Basic and diluted earnings per share were both CNY -0.111, a decrease of 298.21% compared to the previous year[5] - The company reported an operating loss of RMB 1,629,144 thousand for Q1 2020, a decline of 317.99% from an operating profit of RMB 747,350 thousand in Q1 2019, attributed to lower sales prices and high-cost inventory consumption[11] - Net profit for Q1 2020 was a loss of CNY 1,201,386, compared to a profit of CNY 610,997 in Q1 2019[20] - Other comprehensive income for Q1 2020 was a loss of CNY 95,257, compared to no previous figure reported[21] - The company’s cash flow from operating activities was significantly impacted, leading to a comprehensive income total of -1,296,643 in Q1 2020[21] Assets and Liabilities - Total assets decreased by 9.14% to CNY 41,465,657,000 compared to the end of the previous year[4] - Total current assets decreased to RMB 17,816,603 thousand from RMB 22,309,163 thousand, reflecting overall declines in cash and inventory[15] - Total liabilities decreased to RMB 12,720,936 thousand from RMB 15,620,227 thousand, indicating a reduction in financial obligations[16] - Total assets as of Q1 2020 were CNY 39,781,376, down from CNY 43,243,202 in the previous year[20] - Total liabilities for Q1 2020 were CNY 11,553,990, a decrease of 15.9% from CNY 13,732,296 in Q1 2019[20] Cash Flow - Net cash flow from operating activities was CNY -3,880,619,000, a decline of 256.12% year-on-year[4] - Operating cash flow for Q1 2020 was negative at -3,880,619 thousand RMB, compared to -1,089,708 thousand RMB in Q1 2019, indicating a decline in cash generation from operations[25] - Total cash inflow from operating activities decreased to 19,291,390 thousand RMB in Q1 2020 from 27,312,873 thousand RMB in Q1 2019, a drop of approximately 29%[25] - Cash outflow for purchasing goods and services was 19,096,902 thousand RMB in Q1 2020, down from 23,266,199 thousand RMB in Q1 2019, reflecting a reduction of about 18%[25] - The ending cash and cash equivalents balance decreased to 4,137,606 thousand RMB in Q1 2020 from 8,271,046 thousand RMB in Q1 2019, a decline of about 50%[26] - The net increase in cash and cash equivalents was -3,312,093 thousand RMB in Q1 2020, contrasting with a slight increase of 29,153 thousand RMB in Q1 2019[26] Shareholder Information - The total number of shareholders at the end of the reporting period was 96,508[7] - The largest shareholder, Sinopec Limited, holds 50.44% of the shares[7] Government Support and Other Income - The company received government subsidies amounting to CNY 20,203,000 during the reporting period[6] - The company reported a significant increase in non-operating losses, totaling CNY -13,019,000[6] - Investment income decreased by 60.07% to RMB 77,983 thousand from RMB 195,291 thousand, impacted by the pandemic and fluctuations in the chemical market[11] - The company reported an investment income of CNY 77,983 in Q1 2020, down from CNY 195,291 in Q1 2019[20] Inventory and Accounts Payable - Inventory decreased by 26.42% to RMB 4,969,938 thousand from RMB 6,754,434 thousand, influenced by the COVID-19 pandemic and a drop in international crude oil prices[11] - Accounts payable decreased by 42.81% to RMB 4,383,186 thousand from RMB 7,664,296 thousand, due to reduced raw material procurement volume and prices amid the pandemic[11] Future Outlook - The company plans to focus on cost control and efficiency improvements in response to the challenging market conditions[20]