Financial Performance - The net loss attributable to shareholders for 2022 was RMB 2,872,072 thousand according to Chinese accounting standards, and RMB 2,846,156 thousand according to International Financial Reporting Standards, with no dividends proposed for the year[5]. - The company's net sales for 2022 were RMB 72,654.6 million, a decrease of 4.3% from RMB 75,888.8 million in 2021[10]. - The company reported a pre-tax loss of RMB 3,573.7 million for 2022, compared to a profit of RMB 2,721.1 million in 2021, marking a significant decline[10]. - The net loss attributable to shareholders for 2022 was RMB 2,846.2 million, a sharp decrease from a profit of RMB 2,073.4 million in 2021, representing a 237.5% decline[10]. - The company's total assets decreased to RMB 41,136.7 million in 2022 from RMB 46,920.6 million in 2021, reflecting a decline of 12.0%[10]. - The net asset attributable to shareholders at the end of 2022 was RMB 26,227.7 million, down 13.3% from RMB 30,242.1 million in 2021[10]. - The operating income for 2022 was RMB 82,518.3 million, a decrease of 7.7% compared to RMB 89,280.4 million in 2021[13]. - The net cash flow from operating activities for 2022 was a negative RMB 7,337.5 million, compared to a positive RMB 4,060.0 million in 2021[13]. - The company reported a diluted loss per share of RMB (0.265) for 2022, compared to earnings of RMB 0.185 per share in 2021[14]. - The company experienced a significant increase in the asset-liability ratio to 36.06% in 2022 from 35.38% in 2021, indicating a slight increase in financial leverage[14]. Market Position and Operations - The company is a major integrated petrochemical enterprise in China, focusing on refining and producing various petroleum products, with a significant portion of sales coming from the East China region[9]. - The company has a strong market position in the production of refined oil, intermediate petrochemical products, synthetic resins, and synthetic fibers, benefiting from the growing demand for petrochemical products in China[9]. - The company has independent public utilities and environmental protection systems, along with comprehensive transportation facilities including maritime, inland river, railway, and road transport[9]. - The company produced over 60 different products, including various specifications of synthetic fibers, resins, plastics, and petrochemical products[19]. - The company's main products accounted for a total of 100% of the net sales in 2022, with petroleum products making up 57.04%[23]. - Gasoline sales contributed 23.50% and diesel sales contributed 20.05% to the total revenue, highlighting the significance of transportation fuels[23]. - The company is involved in various businesses including oil and gas exploration, refining, and petrochemical production[31]. - The company is located in the economically active Yangtze River Delta region, which enhances its competitive advantage in logistics and transportation[46]. Challenges and Risks - The company faced unprecedented challenges in 2022 due to global economic downturns and geopolitical tensions affecting oil and gas prices[48]. - The company anticipates that international oil and gas prices will remain at a medium to high level throughout the year due to geopolitical risks and OPEC production controls[130]. - The company faces four major challenges in 2023: oil price volatility, market uncertainty, rising investment costs, and external risk accumulation[131]. - The company faces risks related to the cyclical nature of the oil and petrochemical markets, with significant sensitivity to macroeconomic conditions and fluctuations in crude oil and petrochemical product prices[139]. - Over 95% of the crude oil required for production is imported, exposing the company to procurement risks and the inability to fully pass on increased costs due to rising oil prices[140]. - The company is subject to numerous environmental regulations, and potential future stricter standards could lead to additional costs[142]. - The company’s operations may be adversely affected by fluctuations in the RMB exchange rate against foreign currencies, impacting costs and profitability[143]. Research and Development - The company is engaged in research and development of alternative energy products and technology services[32]. - The company applied for 120 patents and was granted 59, achieving significant breakthroughs in technology innovation, including the development of carbon fiber and composite materials for various applications[52]. - Research and development expenses for 2022 amounted to RMB 130.5 million, an increase from RMB 94.3 million in 2021, primarily due to higher material costs for equipment and product technology development[92]. - The company focuses on R&D innovation, particularly in the production processes of ethylene and propylene, which are key raw materials for various products[155]. Environmental and Safety Initiatives - The company achieved a 57.64% year-on-year reduction in ammonia nitrogen emissions, a 23.90% reduction in sulfur dioxide emissions, and a 10.56% reduction in nitrogen oxides emissions[195]. - The company maintained a 100% compliance rate for wastewater discharge and a 99.99% compliance rate for controlled waste gas emissions in 2022[195]. - The company conducted 2,902,476 leak detection tests on production equipment, identifying 8,374 leaks and successfully repairing 8,245 of them, resulting in a repair rate of 98.50%[195]. - The company received the "2022 Green Enterprise" award and continued to hold the title of "Chinese Environmentally Friendly Enterprise" after passing the review[195]. - The company has implemented a dual prevention mechanism to mitigate major safety and environmental risks, enhancing its HSE performance[195]. - The company has obtained environmental impact assessments for seven projects, including the thermoplastic elastomer project in 2022[198]. Shareholder and Corporate Governance - The controlling shareholder of the company is China Petroleum & Chemical Corporation, holding 67.20% of the shares[33]. - The company has no non-operational fund occupation by controlling shareholders and their related parties[6]. - The company has not violated regulatory decision-making procedures in providing guarantees[6]. - The board of directors has detailed the potential risks that may affect the company's future development in the management discussion and analysis section of the report[6]. - The company has appointed KPMG Huazhen LLP as the domestic auditor and KPMG as the overseas auditor for the fiscal year 2022, with a total remuneration of RMB 6,837,000[178]. - The company has not issued any stock options under the equity incentive plan during the reporting period, and no options were exercised or canceled[182]. Future Plans and Goals - The company aims to continuously improve operational efficiency and strives to become a "domestically leading, world-class" energy, chemical, and new materials company[9]. - The company aims to enhance its competitiveness by focusing on low-cost upstream operations and high-value downstream products, while promoting technological upgrades and ecological transformation[132]. - The company plans to process a total of 13.6 million tons of crude oil in 2023, with expected production of 8.001 million tons of refined oil, 756,000 tons of ethylene, and 680,000 tons of paraxylene[133]. - The company plans to achieve commercial operation of the 48K large bundle project in the current year and initiate the construction of the second phase, along with establishing a 100-ton high-performance carbon fiber testing facility[137]. - The company anticipates capital expenditures of approximately RMB 3.7 billion for 2023, which will be financed through a combination of financing activities and internal funds[141].

Financial Performance - The net loss attributable to shareholders for 2022 was RMB 2,872,072 thousand, a decrease of 243.57% compared to a profit of RMB 2,000,506 thousand in 2021[3]. - Total revenue for 2022 was RMB 82,518,315 thousand, representing a decline of 7.57% from RMB 89,280,415 thousand in 2021[9]. - The net cash flow from operating activities was a loss of RMB 7,337,499 thousand, compared to a positive cash flow of RMB 4,060,026 thousand in 2021[9]. - The basic loss per share for 2022 was RMB (0.265), compared to earnings of RMB 0.185 per share in 2021[10]. - The weighted average return on net assets decreased to (10.163)% in 2022 from 6.727% in 2021, a reduction of 16.89 percentage points[10]. - The company reported a pre-tax loss of RMB 3,573.7 million in 2022, compared to a profit of RMB 2,721.1 million in 2021[12]. - The net loss attributable to shareholders for 2022 was RMB 2,846.2 million, a significant decline from a profit of RMB 2,073.4 million in 2021[12]. - The company's operating loss for 2022 was RMB 38,434 million, a significant decrease from the operating profit of RMB 14,322 million in 2021[46]. - The after-tax loss for the group was RMB 2.8423 billion, a decrease of RMB 4.9189 billion from last year's after-tax profit of RMB 2.0766 billion[54]. Assets and Liabilities - The total assets decreased by 12.32% to RMB 41,242,740 thousand at the end of 2022 from RMB 47,038,622 thousand at the end of 2021[9]. - The total liabilities of the company as of December 31, 2022, were RMB 14,781.4 million, a decrease from RMB 16,543.2 million in 2021[12]. - The company's total liabilities decreased to RMB 14,871,354,000 in 2022 from RMB 16,643,191,000 in 2021, a reduction of about 10.5%[130]. - The company's total current assets decreased to RMB 15,765,882,000 from RMB 20,932,276,000 in 2021, representing a decline of approximately 24.3%[129]. - The company's total non-current assets decreased to RMB 25,476,858,000 in 2022 from RMB 26,106,346,000 in 2021, a decline of approximately 2.4%[129]. Sales and Revenue Breakdown - The company's net sales for 2022 were RMB 72,654.6 million, a decrease of 4.9% compared to RMB 75,888.8 million in 2021[12]. - The total sales volume for 2022 was 9,667.3 thousand tons, with a net sales amount of RMB 72,654.6 million, representing a decrease of 4.4% compared to RMB 75,888.8 million in 2021[33]. - The sales of petrochemical products accounted for 57.0% of total net sales in 2022, with a net sales amount of RMB 41,444.7 million, slightly down from RMB 41,884.4 million in 2021[34]. - The net sales of intermediate petrochemical products were RMB 10,537.7 million, accounting for 14.5% of total net sales, a slight decrease from RMB 10,780.5 million in 2021[34]. - The sales volume of resin and plastics increased by 10.1% to 889.3 thousand tons, with net sales of RMB 7,321.2 million, compared to RMB 9,962.7 million in 2021[33]. Operational Efficiency and Costs - The total sales costs and expenses for 2022 were RMB 76,498 million, an increase of 2.74% from RMB 74,456.6 million in 2021[42]. - The company's total sales cost represented 104.97% of net sales for the year[43]. - The total cost of crude oil processing increased by RMB 3.956 billion, up 9.16%, accounting for 61.81% of total sales costs[23]. - The company's operating costs rose by 2.57% to RMB 73.518 billion from RMB 71.675 billion in the previous year, primarily due to rising international oil prices[72]. - The cost of raw materials, particularly crude oil, was RMB 47,139 million, accounting for 64.12% of total operating costs, up from 60.25% in 2021[73]. Research and Development - The company's research and development expenses for 2022 were RMB 130.5 million, an increase from RMB 94.3 million in 2021, primarily due to increased material costs for equipment and product technology development[58]. - The company applied for 120 patents and was granted 59, achieving significant breakthroughs in technological innovation[25]. - The company employed 179 R&D personnel, making up 2.24% of the total workforce[76]. Environmental and Safety Initiatives - The company achieved a 100% compliance rate for wastewater discharge and a 99.99% compliance rate for controlled waste gas emissions in 2022[110]. - Emissions of ammonia nitrogen, sulfur dioxide, and nitrogen oxides decreased by 57.64%, 23.90%, and 10.56% respectively in 2022 compared to the previous year[109]. - The company implemented carbon reduction measures that resulted in a reduction of approximately 9.5 million tons of CO2 equivalent emissions through 57 completed energy-saving actions in 2022[117]. - The company has been recognized as a "Green Enterprise" in 2022 and continues to hold the title of "Chinese Environmentally Friendly Enterprise" after re-evaluation[109]. Future Plans and Strategic Focus - The company plans to process a total of 13.6 million tons of crude oil in 2023, with production targets of 8.001 million tons of refined oil, 756,000 tons of ethylene, 680,000 tons of paraxylene, and 698,700 tons of new synthetic resin products[88]. - The company aims to enhance its core industries in high-end new materials, focusing on carbon fiber and downstream fine chemical materials, to support local industrial development[87]. - The company is committed to achieving a transformation from fossil energy to a mix of fossil and renewable energy, promoting green and low-carbon development[87]. - The company will focus on cost reduction and efficiency improvement across all production processes to maximize overall profitability[90].

Financial Performance - The company's operating revenue for the third quarter of 2022 was CNY 11,878,206, a decrease of 51.96% compared to the same period last year[4]. - The net profit attributable to shareholders of the listed company was a loss of CNY 1,566,776, representing a decline of 317.35% year-on-year[4]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 1,529,123, down 313.63% from the previous year[4]. - The total comprehensive income for the first three quarters of 2022 was a loss of RMB 1,777,831, compared to a gain of RMB 2,048,850 in the same period of 2021[13]. - Net profit attributable to shareholders of the parent company for the first three quarters of 2022 was a loss of RMB 2,002,785, compared to a profit of RMB 1,965,050 in the same period of 2021[13]. - The company reported a basic earnings per share of -0.185 for the first three quarters of 2022, compared to 0.182 in the same period of 2021[13]. Cash Flow and Liquidity - The net cash flow from operating activities was CNY 1,670,792, a decrease of 18.34% compared to the same period last year[4]. - Cash flow from operating activities for the first three quarters of 2022 showed a net outflow of RMB 4,734,330, compared to a smaller outflow of RMB 343,611 in the same period of 2021[14]. - The cash inflow from investment activities for the first three quarters of 2022 was RMB 3,790,376, a significant improvement compared to an outflow of RMB 3,877,409 in the same period of 2021[14]. - The net cash flow from financing activities for the first three quarters of 2022 was RMB 1,309 million, significantly up from RMB 534 million in the same period of 2021, indicating improved cash management[15]. - The company reported a cash and cash equivalents balance of RMB 5,495 million at the end of Q3 2022, an increase from RMB 3,228 million at the end of Q3 2021, reflecting a positive liquidity position[15]. - Cash inflows from financing activities totaled RMB 21,485 million in the first three quarters of 2022, compared to RMB 18,663 million in the same period of 2021, showing a growth of 15.5%[15]. - Cash outflows from financing activities increased to RMB 20,176 million in the first three quarters of 2022, up from RMB 18,129 million in the same period of 2021, representing an increase of 11.3%[15]. - The impact of exchange rate changes on cash and cash equivalents was RMB 18 million in Q3 2022, a positive shift from a negative impact of RMB 2 million in Q3 2021[15]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 44,689,289, a decrease of 4.99% compared to the end of the previous year[4]. - The total liabilities as of September 30, 2022, amounted to RMB 17,301,164, an increase of 3.9% from RMB 16,643,191 as of December 31, 2021[11]. - The company's total equity attributable to shareholders decreased to RMB 27,259,789 as of September 30, 2022, from RMB 30,260,172 as of December 31, 2021[11]. - The company's current assets as of September 30, 2022, totaled 20,384,304,000 RMB, a decrease from 20,932,276,000 RMB at the end of 2021[10]. - Non-current assets totaled 24,304,985,000 RMB as of September 30, 2022, down from 26,106,346,000 RMB at the end of 2021[10]. - Cash and cash equivalents decreased to 9,087,458,000 RMB from 12,498,617,000 RMB year-over-year[10]. - Inventory increased significantly to 7,466,394,000 RMB from 5,923,525,000 RMB year-over-year[10]. - The company's short-term borrowings increased to RMB 2,060,000 as of September 30, 2022, from RMB 1,540,000 as of December 31, 2021[11]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 102,846[7]. - The largest shareholder, China Petroleum & Chemical Corporation, holds 5,459,455,000 shares, representing 50.44% of total shares[7]. - The second largest shareholder, Hong Kong Central Clearing Limited, holds 3,452,738,030 shares, accounting for 31.90%[7]. - The company has no pledged, marked, or frozen shares among its top shareholders[8]. Operational Challenges and Recovery - The company experienced a significant decline in sales revenue due to an explosion at its 1 ethylene glycol unit on June 18, 2022[6]. - The average price increase of petrochemical products and crude oil was not sufficient to offset the operational losses caused by the incident[6]. - The company reported a total of CNY 37,653 in non-recurring losses for the quarter, with significant impacts from various operational disruptions[5]. - The company successfully resumed production after a major incident on June 18, 2022, completing recovery work by September 30, 2022[9]. - The company has initiated a phased recovery plan for production following the incident, successfully restoring operations across multiple stages[9]. Research and Development - Research and development expenses for the first three quarters of 2022 were RMB 82,916, up from RMB 75,153 in the same period of 2021, indicating a focus on innovation[12].

Financial Performance - The company's operating revenue for the first half of 2022 was RMB 45,900,355, representing a 23.60% increase compared to RMB 37,136,606 in the same period last year[9]. - The total profit (loss) for the period was a loss of RMB 442,601, a significant decline of 129.30% from a profit of RMB 1,510,713 in the previous year[9]. - The net loss attributable to shareholders of the parent company was RMB 436,009, marking a 135.04% decrease from a profit of RMB 1,244,189 in the same period last year[9]. - Basic and diluted earnings per share were both RMB -0.040, compared to RMB 0.115 in the same period last year, indicating a significant decline[10]. - The weighted average return on net assets decreased by 5.61 percentage points to -1.448% from 4.164% in the previous year[10]. - The company's revenue for the first half of 2022 was RMB 45.859 billion, an increase of RMB 8.771 billion or 23.65% compared to the same period last year[18]. - The pre-tax loss for the first half of 2022 was RMB 433 million, a decrease of RMB 1.976 billion compared to a pre-tax profit of RMB 1.543 billion in the same period last year[18]. - The company's financial net income for the first half of 2022 was RMB 279.3 million, up from RMB 210.5 million in the same period last year[23]. - The company reported a significant increase in cash flow from investment activities, with a net inflow of RMB 1,776,708 thousand compared to an outflow of RMB -3,106,358 thousand in the previous year[33]. - The company reported a total comprehensive income of RMB (157,308) thousand for the first half of 2022, compared to RMB 1,301,800 thousand in the same period of 2021[195]. Cash Flow and Liquidity - The net cash flow used in operating activities was RMB -6,405,122, an increase of 168.05% compared to RMB -2,389,552 in the previous year[9]. - In the first half of 2022, the company's net cash outflow from operating activities was RMB 6.4556 billion, compared to a net cash outflow of RMB 2.4434 billion in the same period last year[24]. - The company generated a net cash inflow of RMB 1.7767 billion from investing activities in the first half of 2022, a significant improvement from a net cash outflow of RMB 3.1064 billion in the previous year, primarily due to net inflows from time deposits and structured deposits of RMB 2.35 billion[24]. - The net cash inflow from financing activities was RMB 1.9968 billion in the first half of 2022, compared to a net cash inflow of RMB 0.0028 billion in the same period last year, mainly due to an increase in cash flow from loans and short-term financing notes[24]. - The company's cash inflow from operating activities for the first half of 2022 was RMB 50,632,846 thousand, an increase of 31.1% compared to RMB 38,606,063 thousand in the same period of 2021[197]. - The ending cash and cash equivalents balance as of June 30, 2022, was RMB 2,438,650 thousand, compared to RMB 1,367,415 thousand at the end of June 30, 2021, showing a significant increase of 78.3%[198]. Production and Sales - The total production of main products was 5.4317 million tons, a decrease of 8.07% year-on-year[18]. - The company processed 5.7951 million tons of crude oil, a decrease of 6.68% year-on-year[18]. - The production of gasoline was 1.4483 million tons, a decrease of 0.88% year-on-year, while diesel production was 1.3112 million tons, a decrease of 15.32% year-on-year[18]. - The production of liquefied gas increased by 23.41% year-on-year to 326,300 tons[18]. - The production of ethylene was 353,500 tons, an increase of 16.67% year-on-year, and paraxylene production was 318,400 tons, an increase of 116.01% year-on-year[18]. - The company's product sales rate was 98.74%, and the collection rate of accounts receivable (excluding related parties) was 100%[18]. - The sales volume of synthetic fibers decreased by 79.89%, while the sales volume of resins and plastics and petroleum products decreased by 15.07% and 12.89%, respectively[21]. - The company's total daily remuneration for 2022 was RMB 9,428,000, an increase of 18.4% from RMB 7,954,000 in 2021[183]. Assets and Liabilities - The net assets attributable to shareholders of the parent company decreased by 4.57% to RMB 28,875,824 from RMB 30,260,172 at the end of the previous year[9]. - Total assets decreased by 9.69% to RMB 42,481,112 from RMB 47,038,622 at the end of the previous year[9]. - The total liabilities decreased to RMB 12,614,058 thousand, reflecting a strategic focus on reducing debt levels[112]. - The company's total liabilities decreased from RMB 9,400,510,000 in December 2021 to RMB 7,987,334,000 in June 2022, a reduction of approximately 15%[149]. - The company's total assets as of June 30, 2022, were RMB 629,576,000, a decrease of 18.8% from RMB 775,007,000 at the end of 2021[185]. - The company's total equity attributable to shareholders decreased to RMB 28,858,796 thousand, down 4.3% from RMB 30,242,139 thousand as of December 31, 2021[113]. Environmental and Compliance - The company’s environmental performance showed a 100% compliance rate for wastewater discharge, with ammonia nitrogen and sulfur dioxide emissions decreasing by 58.93% and 8.78%, respectively[20]. - The company achieved a 100% compliance rate for wastewater discharge standards and a 100% compliance rate for controlled air emissions[77]. - The company has maintained its "Green Enterprise" title from Sinopec Group and continues to implement high standards for environmental management[76]. - The company completed the revision of the emergency response plan for environmental incidents, including 11 aspects such as environmental risk analysis and internal warning mechanisms, with a total of 157 environmental risk sources identified[81]. - The company has complied with all provisions of the Corporate Governance Code as per the Hong Kong Listing Rules during the reporting period[103]. Research and Development - The company’s research and development efforts resulted in 55 patent applications, with 39 patents granted during the reporting period[20]. - Research and development expenses increased to RMB 36,426 thousand in the first half of 2022, up from RMB 27,943 thousand in the first half of 2021[194]. - The group reported a depreciation expense of RMB 716,213,000 for property, plant, and equipment for the six months ended June 30, 2022, down from RMB 800,196,000 in 2021, a decrease of approximately 10.5%[130]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 105,475[88]. - The largest shareholder, Sinopec Limited, holds 5,459,455,000 shares, representing 50.44% of the total shares[90]. - A cash dividend of RMB 0.1 per share was approved for the 2021 fiscal year, totaling RMB 1,082,381,350[57]. - The company proposed dividends of RMB 1,082,381 thousand during the reporting period[116]. Risks and Challenges - The company faced significant challenges due to the pandemic and supply chain disruptions, impacting downstream market demand[14]. - The company plans to focus on safety and environmental issues while ensuring stable production operations in the second half of 2022, amid rising inflation risks and uncertain international oil prices[30]. - The company faces risks related to the cyclical nature of the oil and petrochemical market, which may adversely affect its operations[48].

Financial Performance - The company's operating revenue for Q1 2022 was RMB 26,006,070, representing a year-on-year increase of 27.61%[4] - Net profit attributable to shareholders for the same period was RMB 213,510, reflecting a significant decrease of 81.81% compared to the previous year[4] - The basic earnings per share for Q1 2022 was RMB 0.020, down 81.48% year-on-year[4] - Net profit attributable to ordinary shareholders of the parent company decreased by 81.81% due to significant increases in crude oil prices and rising product costs[8] - Net profit attributable to ordinary shareholders of the parent company, after deducting non-recurring gains and losses, decreased by 79.14% for the same reasons[8] - Basic and diluted earnings per share for Q1 2022 were both RMB 0.020, down from RMB 0.108 in Q1 2021[13] - Net profit for Q1 2022 was RMB 214,850 thousand, a decrease from RMB 1,175,274 thousand in Q1 2021, indicating a decline of approximately 81.8%[13] Assets and Shareholder Information - The total assets at the end of the reporting period amounted to RMB 53,737,111, an increase of 14.24% from the end of the previous year[4] - The total number of shareholders at the end of the reporting period was 106,105[6] - The largest shareholder, Sinopec Limited, held 5,459,455,000 shares, accounting for 50.44% of the total shares[6] - Total assets as of March 31, 2022, amounted to RMB 53,737,111 thousand, an increase from RMB 47,038,622 thousand at the beginning of the year[11] Cash Flow Analysis - The company reported a net cash flow from operating activities of RMB -1,785,568, which is not applicable for year-on-year comparison[4] - Net cash flow from operating activities increased by 453.61%, indicating a significant outflow due to declining operational performance[8] - In Q1 2022, cash inflow from operating activities was CNY 27,467,908 thousand, up from CNY 20,475,530 thousand in Q1 2021, representing a growth of approximately 34.5%[14] - Cash outflow from operating activities increased to CNY 29,253,476 thousand in Q1 2022 from CNY 20,798,062 thousand in Q1 2021, resulting in a net cash flow from operating activities of -CNY 1,785,568 thousand, compared to -CNY 322,532 thousand in the previous year[14] - The ending cash and cash equivalents balance as of March 31, 2022, was CNY 4,987,376 thousand, compared to CNY 1,241,576 thousand at the end of Q1 2021, reflecting a significant increase[15] Investment and Financing Activities - Cash inflow from investing activities decreased to CNY 1,625,609 thousand in Q1 2022 from CNY 2,100,402 thousand in Q1 2021, while cash outflow remained relatively stable at CNY 4,450,012 thousand[15] - The net cash flow from investing activities was -CNY 2,824,403 thousand in Q1 2022, compared to -CNY 2,334,042 thousand in Q1 2021, indicating a worsening investment cash flow situation[15] - Cash inflow from financing activities significantly increased to CNY 6,454,975 thousand in Q1 2022 from CNY 890,000 thousand in Q1 2021, showing a growth of over 627%[15] - The net cash flow from financing activities was CNY 4,485,169 thousand in Q1 2022, a substantial improvement from -CNY 3,024,860 thousand in Q1 2021[15] - The cash flow from financing activities included CNY 3,455,000 thousand from loans obtained in Q1 2022, compared to CNY 890,000 thousand in Q1 2021, highlighting increased borrowing activity[15] Operational Costs and Tax Obligations - Total operating costs for Q1 2022 were RMB 25,599,241 thousand, compared to RMB 19,157,566 thousand in Q1 2021, reflecting a year-on-year increase of about 33.6%[12] - The company incurred CNY 5,589,134 thousand in tax payments in Q1 2022, which is an increase from CNY 3,491,795 thousand in Q1 2021, indicating a rise in tax obligations[14] Product Development and Market Strategy - The company has not disclosed any new product developments or market expansion strategies in the current report[3]

Financial Performance - The net profit attributable to shareholders for 2021 was RMB 2,000,506 thousand according to Chinese accounting standards, and RMB 2,073,431 thousand according to International Financial Reporting Standards[3]. - The company's profit before tax for 2021 was RMB 2,721.1 million, significantly up from RMB 590.8 million in 2020, marking a 360.5% increase[7]. - The net profit attributable to shareholders for 2021 was RMB 2,073.4 million, compared to RMB 645.1 million in 2020, representing a 221.5% increase[7]. - The company's operating income for 2021 was RMB 89,280,415 thousand, reflecting a 19.51% increase from RMB 74,705,183 thousand in 2020[10]. - The net cash flow from operating activities in 2021 was RMB 4,060,026 thousand, a 131.84% increase from RMB 1,751,217 thousand in 2020[10]. - The basic earnings per share for 2021 was RMB 0.192, up from RMB 0.060 in 2020, indicating a 213.33% increase[11]. - The company's total liabilities increased to RMB 16,543.2 million in 2021 from RMB 15,284.2 million in 2020[7]. - The weighted average return on equity for 2021 was 6.727%, up from 2.127% in 2020, showing a significant improvement[11]. - The company's revenue for 2021 was RMB 89.198 billion, an increase of 19.53% compared to the previous year[49]. - The company's net profit for 2021 was RMB 2.004 billion, representing a significant increase of 213.35% from RMB 639.436 million in 2020[103]. Dividends and Shareholder Information - The proposed final dividend for 2021 is RMB 0.1 per share (including tax), pending approval at the annual general meeting[3]. - The company plans to pay the final dividend to H-share shareholders around July 28, 2022, based on the share register as of July 5, 2022[4]. - The company will suspend H-share transfer registration from June 30, 2022, to July 5, 2022, to confirm the rights to receive the final dividend[4]. - The company had a total of 104,031 common shareholders at the end of the reporting period, an increase from 102,649 at the end of the previous month[22]. - The top ten shareholders held a total of 50.44% of the shares, with China Petroleum & Chemical Corporation being the largest shareholder[24]. - The controlling shareholder is China Petroleum & Chemical Corporation, holding 68.31% of the shares[32]. - The actual controller is China Petroleum Group, which holds 68.83% of the shares[33]. Operational Highlights - In 2021, the company's net sales amounted to RMB 75,888.8 million, a 23.3% increase from RMB 61,560.9 million in 2020[7]. - The company generated 55.19% of its sales from petroleum products, with gasoline contributing 22.70% and diesel 18.13%[16][18]. - The sales of synthetic fibers accounted for 1.81% of total sales, with polyester short fibers at 0.22% and acrylic short fibers at 1.52%[17]. - The company reported a net gain from the disposal of non-current assets of RMB 48,671 thousand in 2021, down from RMB 72,296 thousand in 2020[14]. - The company processed a total of 13.76 million tons of crude oil in 2021, a decrease of 6.18% year-on-year, and produced 7.97 million tons of refined oil, down 4.90%[49]. - The company achieved a product sales rate of 100.05% and a receivables turnover rate of 100% in 2021, maintaining high product quality[49]. Risk Management and Compliance - The company has detailed risk descriptions regarding potential future development risks in the management discussion and analysis section of the report[5]. - The company does not have any violations of decision-making procedures for external guarantees[5]. - The company is continuously evaluating its accounting estimates and judgments, which may affect its financial performance[56]. - The company is assessing the recoverable amount of non-current assets to determine any impairment losses[59]. - The company is subject to stringent environmental regulations, which may lead to additional compliance costs in the future[141]. - The company faces risks related to the cyclical nature of the oil and petrochemical markets, which can significantly impact revenue and pricing[138]. Research and Development - The company has a strong focus on research and development in alternative energy products and technologies[29]. - Research and development expenses for 2021 amounted to RMB 0.0943 billion, a decrease from RMB 0.1106 billion in 2020[93]. - The company is focused on R&D innovation as part of its strategic initiatives[160]. - The company is exploring a new compensation distribution mechanism for research personnel and has implemented a project responsibility incentive plan[55]. - The company employed 169 R&D personnel, representing 2.02% of total staff, with 12 holding doctoral degrees and 30 holding master's degrees[114]. Environmental and Safety Initiatives - The company emphasizes safety and environmental protection as foundational elements of its operational strategy[132]. - The total environmental protection investment was RMB 393 million, accounting for 0.50% of operating revenue[173]. - The company is committed to achieving carbon neutrality goals by reducing coal consumption and increasing the use of renewable energy sources[136]. - The company is adapting to the "plastic limit order" and increasing the application of biodegradable plastics in response to environmental regulations[147]. - The company reported that there were no significant safety production accidents during the period[173]. Strategic Initiatives and Future Plans - The company plans to continue optimizing its product structure and enhancing the quality and variety of existing products to meet the growing market demand for petrochemical products in China[6]. - The company aims to enhance its competitive advantage by integrating upstream and downstream operations and optimizing product structures[130]. - The company has initiated several major capital projects, including a 2.4 million tons/year carbon fiber project and a 400,000 tons/year clean gasoline project, with varying stages of completion[126]. - The projected capital expenditure for 2022 is approximately RMB 3.5 billion[127]. - The company plans to process a total of 13.65 million tons of crude oil in 2022, with production targets of 7.57 million tons for refined oil, 825,200 tons for ethylene, and 1,021,000 tons for polypropylene[132]. Related Party Transactions - The company engaged in related party transactions with Sinopec Group, with raw material procurement amounting to RMB 51,521,921, representing 74.21% of similar transactions[191]. - The sales of petroleum and petrochemical products to Sinopec Group amounted to RMB 60,926,642, accounting for 68.30% of similar transactions[191]. - The independent non-executive directors confirmed that the related party transactions were conducted on normal commercial terms and did not significantly affect the company's independence[192]. - The auditors did not find any issues that would lead them to believe that the disclosed related party transactions were not approved by the company's board[192].

Financial Performance - The company's operating revenue for the first half of 2021 was RMB 37,136,606 thousand, representing a 4.13% increase compared to RMB 35,663,352 thousand in the same period last year[7]. - The total profit for the reporting period was RMB 1,510,713 thousand, a significant recovery from a loss of RMB 2,354,618 thousand in the previous year[7]. - Net profit attributable to shareholders of the parent company was RMB 1,244,189 thousand, compared to a loss of RMB 1,716,072 thousand in the same period last year[7]. - Basic earnings per share for the reporting period were RMB 0.115, a recovery from a loss of RMB 0.159 in the same period last year[9]. - The weighted average return on net assets increased to 4.164%, up 10.75 percentage points from -6.588% in the previous year[9]. - The net profit attributable to shareholders was RMB 1.2765 billion, up RMB 2.9473 billion from a loss of RMB 1.6708 billion in the previous year[16]. - The gross profit margin for oil products was 31.9%, reflecting an increase of 8.39 percentage points year-on-year[36]. - The net profit for the six months ended June 30, 2021, was RMB 1,276,462 thousand, contributing to a total comprehensive income of RMB 1,328,893 thousand[115]. Revenue and Sales - The company's revenue for the first half of 2021 was RMB 37.0885 billion, an increase of RMB 1.461 billion or 4.10% year-on-year[16]. - In the first half of 2021, the company achieved a net sales amount of RMB 31.636 billion, an increase of 5.71% compared to the same period last year[21]. - The sales revenue for synthetic fibers, resins and plastics, and petroleum products increased by 1.55%, 5.58%, and 15.84% respectively, while intermediate petrochemical products and petrochemical product trading decreased by 6.23% and 11.43%[21]. - Oil product sales revenue reached RMB 19,501,406 thousand for the six months ended June 30, 2021, an increase from RMB 18,977,693 thousand in the same period of 2020[183]. Production and Operations - The total production of main products decreased by 11.19% year-on-year to 5.9085 million tons due to major maintenance activities[16]. - The crude oil processing volume was 6.2101 million tons, a decrease of 11.52% compared to the same period last year[16]. - The production of finished oil was 3.6183 million tons, down 8.34% year-on-year, with gasoline production decreasing by 0.86% and diesel by 15.67%[16]. - Ethylene production fell by 25.92% to 303,000 tons, while synthetic fiber polymer production increased by 3.80% to 171,900 tons[16]. - The company completed its largest historical maintenance project, involving 58 units over a period of nearly three and a half months[16]. Cash Flow and Financial Position - The net cash flow from operating activities improved to RMB -2,389,552 thousand, a 17.72% reduction in cash outflow compared to RMB -2,904,166 thousand in the previous year[7]. - The company's cash and cash equivalents decreased significantly to RMB 1,367,415 thousand from RMB 6,916,408 thousand, a decrease of about 80.24%[110]. - The company's cash and cash equivalents included short-term deposits of RMB 9,087,104,000 as of June 30, 2021, down from RMB 11,092,283,000 as of December 31, 2020[142]. - The company's operating cash outflow was RMB 2.4434 billion, an improvement from RMB 2.9389 billion in the same period last year[24]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 46,829,792 thousand, reflecting a 4.65% increase from RMB 44,749,173 thousand at the end of the previous year[7]. - The total liabilities increased to RMB 17,224,087 thousand, an increase from RMB 15,394,155 thousand, which is a rise of about 11.9%[200]. - The asset-liability ratio as of June 30, 2021, was 36.65%, up from 35.92% on June 30, 2020[27]. - The company's total liabilities increased to RMB 10,199,742,000 as of June 30, 2021, from RMB 6,476,924,000 as of December 31, 2020, indicating a growth of 57.0%[153]. Environmental and Regulatory Compliance - The company maintained a 100% compliance rate for wastewater discharge in the first half of the year, with significant reductions in emissions of COD, ammonia nitrogen, and nitrogen oxides by 32.36%, 39.59%, and 18.79% respectively[17]. - The company has received multiple environmental certifications, including ISO 14001, and continues to promote green development initiatives[68]. - The company has established a comprehensive emergency response plan for environmental incidents, which includes 11 aspects such as risk analysis and emergency response measures[72]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[76]. Investment and Capital Expenditure - The group's capital expenditure in the first half of 2021 was RMB 1.193 billion, primarily for projects including 24,000 tons/year raw silk and 12,000 tons/year 48K tow carbon fiber[26]. - The capital expenditure for 2021 is estimated to be around RMB 3.25 billion, funded through self-owned funds and bank loans[47]. - The company has ongoing projects including a 24,000 tons/year carbon fiber project with an investment of RMB 3.489638 billion, which is currently under construction[43]. Risks and Challenges - The company has outlined potential risks in its report, advising investors to be aware of investment risks[5]. - The company faces risks from the cyclical nature of the oil and petrochemical market, which may adversely affect its operations due to price fluctuations[45]. - The company relies on imported crude oil for over 95% of its needs, exposing it to procurement risks and potential cost increases due to rising oil prices[46]. - Currency fluctuations, particularly the depreciation of the RMB, could negatively impact the company's costs and profitability, especially since a portion of its procurement is denominated in foreign currencies[49]. Shareholder Structure and Governance - The company has a controlling shareholder, Sinopec Limited, holding 5.46 billion shares, accounting for 50.44% of the total shares, which may influence the company's operations and financial distribution negatively for minority shareholders[51]. - The company maintained a stable shareholder structure with no new major shareholders entering during the reporting period[86]. - The top ten shareholders include China Petroleum & Chemical Corporation holding 50.44% of shares, and Hong Kong Central Clearing Limited holding 31.91%[83]. - The company has complied with all provisions of the Corporate Governance Code as per the Hong Kong Listing Rules during the reporting period[102].

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 - The net profit attributable to the parent company's shareholders for 2019 was RMB 2,213,716 thousand, while the net profit according to IFRS was RMB 2,215,728 thousand[6]. - The proposed dividend for 2019 is RMB 0.12 per share (including tax), pending approval at the annual general meeting[6]. - The net sales for 2019 were RMB 88,055.7 million, a decrease from RMB 95,613.5 million in 2018[12]. - The profit before tax for 2019 was RMB 2,656.1 million, down from RMB 6,808.1 million in 2018, representing a decline of approximately 61.0%[12]. - The net profit attributable to shareholders for 2019 was RMB 2,215.7 million, a significant drop of 58.5% compared to RMB 5,336.3 million in 2018[12]. - Basic earnings per share for 2019 were RMB 0.205, down 57.99% from RMB 0.488 in 2018[16]. - The total revenue for 2019 was RMB 100.27 billion, a decrease of 6.89% compared to the previous year[163]. - The operating profit for 2019 was RMB 1,320.5 million, representing 1.5% of total sales revenue[180]. - The net profit attributable to shareholders for the year was RMB 2,215.7 million, accounting for 2.5% of total sales revenue[180]. Assets and Liabilities - The total assets as of December 31, 2019, were RMB 45,494.1 million, an increase from RMB 44,385.9 million in 2018[12]. - The total liabilities as of December 31, 2019, were RMB 15,500.2 million, up from RMB 13,923.5 million in 2018[12]. Cash Flow - The cash flow from operating activities for 2019 was RMB 5,121.2 million, a decrease of 23.51% from RMB 6,695.1 million in 2018[15]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 87,549, down from 90,981 at the end of the previous month[27]. - The largest shareholder, Sinopec Limited, held 5,460,000,000 shares, representing 50.44% of the total shares[28]. - The company did not issue any securities during the reporting period, and there were no changes in the total number of shares or shareholder structure[26]. Corporate Governance - The company has improved its corporate governance structure in compliance with relevant laws and regulations[84]. - The board of directors consists of 10 members, including 4 executive directors, 2 non-executive directors, and 4 independent non-executive directors[102]. - The board held 5 meetings in 2019, with all meetings attended by a majority of directors either in person or by proxy[104]. - The company has established a comprehensive internal control system since 2004, covering production, operations, finance, investment, human resources, and information disclosure[93]. - The company has adopted and implemented the "Code of Conduct for Securities Transactions" to regulate securities trading by directors and supervisors[75]. Risk Management - The company has established risk management and internal control systems to manage business risks and ensure the protection of shareholder assets[142]. - The comprehensive risk management program was established in 2011, with a focus on risk identification, assessment, response, monitoring, and improvement[145]. - The internal audit department is responsible for independent supervision and evaluation of the effectiveness of risk management systems, reporting to the board of directors[146]. Employee Information - The total number of employees in the group is 8,878, with 8,790 in the company and 88 in subsidiaries[78]. - The total compensation for employees during the reporting period amounted to RMB 3,147,372.16 thousand[79]. - The company has implemented a training program aimed at enhancing employee skills and supporting talent development[80]. Market and Product Information - The main products of the group accounted for 100% of the net sales in 2019, with petroleum products making up 48.98% and petrochemical product trading at 24.63%[25]. - The group produced over 60 different products, including synthetic fibers, resins, plastics, and intermediate petrochemical products[24]. - The company actively adjusts its product structure and continuously improves product quality and variety to meet the growing market demand for petrochemical products in China[158]. Audit and Compliance - The financial statements were audited by PwC and Deloitte, both issuing standard unqualified opinions[5]. - The company has not faced any penalties from securities regulatory authorities in the past three years[77]. - The external auditor, PwC, issued an internal control audit report for the financial report as of December 31, 2019, confirming the effectiveness of internal controls[97]. Strategic Goals - The company aims to enhance operational efficiency and aims to become a "domestically leading, world-class" energy and chemical company[11]. - The strategic committee aims to build a "domestically leading, world-class" energy chemical and new materials company, focusing on hydrogen energy and other green energy market research[136]. - The company plans to enhance its development strategy for energy, chemicals, and new materials, with a goal to establish international competitiveness within approximately "two three-year" and "two ten-year" timeframes[136].