Financial Performance - The net loss attributable to shareholders for 2022 was RMB 2,872,072 thousand under Chinese accounting standards, and RMB 2,846,156 thousand under IFRS[5]. - The company reported a net loss attributable to shareholders of RMB 2,872.1 million in 2022, a decline of 243.57% from a profit of RMB 2,000.5 million in 2021[25]. - Basic and diluted earnings per share for 2022 were both RMB (0.263), compared to RMB 0.192 in 2021, indicating a significant loss[25]. - The weighted average return on equity decreased to (10.163%) in 2022, down 16.89 percentage points from 6.727% in 2021[24]. - The company's total assets at the end of 2022 were RMB 41,242.7 million, a decrease of 12.32% from RMB 47,038.6 million at the end of 2021[25]. - The company's net profit attributable to shareholders was a loss of RMB 2.8462 billion, compared to a profit of RMB 2.0734 billion in 2021[54]. - The gross loss for the company was RMB 3.8434 billion, compared to a profit of RMB 1.4322 billion in 2021[54]. - The net loss after tax for 2022 was RMB 2.8423 billion, a decrease of RMB 4.9189 billion compared to a net profit of RMB 2.0766 billion in the previous year[76]. - The company's cash flow from operating activities showed a net outflow of RMB 7,337.5 million in 2022, compared to a net inflow of RMB 4,060.0 million in 2021[25]. - The company's cash flow from operating activities showed a net outflow of RMB 7.337 billion, an increase in outflow of 280.73% compared to a net inflow of RMB 4.060 billion in 2021[93]. Revenue and Sales - The company's net sales for 2022 were RMB 72,654.6 million, a decrease of 4.3% compared to RMB 75,888.8 million in 2021[25]. - The company's revenue for the year was RMB 82.443 billion, representing a decline of 7.57% compared to the previous year[38]. - The company's total revenue for 2022 was RMB 72.6546 billion, a decrease of 4.26% from RMB 75.8888 billion in 2021[54]. - Synthetic fiber revenue dropped to RMB 412.5 million, a significant decline of 70.00% compared to RMB 1,374.8 million in the previous year, with sales volume decreasing by 78.02%[54]. - Revenue from resins and plastics fell to RMB 7.3212 billion, down 26.51% from RMB 9.9627 billion in 2021, with sales volume decreasing by 29.13%[55]. - Intermediate petrochemical products generated RMB 10.5377 billion in revenue, a slight decrease of 2.25% from RMB 10.7805 billion, with sales volume down by 11.43%[56]. - Oil products revenue was RMB 41.4447 billion, a decrease of 1.05% from RMB 41.8844 billion, with sales volume declining by 30.06%[57]. - Revenue from petrochemical product trading increased to RMB 12.0076 billion, an increase of 8.65% from RMB 11.0514 billion, driven by higher sales from a subsidiary[58]. - Other revenue rose to RMB 930.9 million, an increase of 11.48% from RMB 835.0 million in the previous year[59]. Costs and Expenses - The group's total sales costs and expenses for 2022 amounted to RMB 76.498 billion, an increase of 2.74% compared to RMB 74.457 billion in 2021[61]. - The sales cost for 2022 was RMB 76.266 billion, up 2.65% from RMB 74.298 billion in the previous year, with sales costs accounting for 104.97% of the net sales for the year[62]. - The total operating cost for 2022 was RMB 73,518 million, an increase of 2.57% from RMB 71,676 million in 2021, primarily due to rising international crude oil prices[98]. - The total cost of crude oil processing increased by RMB 3.956 billion, up 9.16% year-on-year, accounting for 61.81% of total sales costs[40]. Assets and Liabilities - The company's net asset attributable to shareholders decreased by 13.27% to RMB 26,243.7 million at the end of 2022 from RMB 30,260.2 million at the end of 2021[25]. - The company experienced a significant increase in total liabilities, which amounted to RMB 14,781.4 million at the end of 2022, compared to RMB 16,543.2 million at the end of 2021[26]. - The asset-liability ratio as of December 31, 2022, was 35.93%, up from 35.26% in 2021[80]. - As of December 31, 2022, cash and cash equivalents amounted to RMB 3,998,332 thousand, a decrease of 68.01% from RMB 12,498,617 thousand in the previous year[113]. - Accounts receivable increased by 114.84% to RMB 2,512,362 thousand, indicating a rise in outstanding payments[113]. - The total liabilities included accounts payable of RMB 9,144,554 thousand, which increased by 55.29% due to rising crude oil procurement prices[113]. Research and Development - The company applied for 120 patents and was granted 59, highlighting its commitment to technological innovation[42]. - The research and development expenses for 2022 were 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[81]. - The company's research and development (R&D) expenses totaled RMB 130,516 thousand, accounting for 0.16% of total revenue[102]. - The company’s R&D efforts are detailed in the management discussion and analysis section, focusing on innovation and product development[155]. Management and Governance - The board of directors proposed not to distribute dividends for the year and not to increase capital from reserves[5]. - The financial statements were audited by KPMG Huazhen and KPMG, both issuing standard unqualified audit opinions[9]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[6]. - There were no violations of decision-making procedures regarding external guarantees[7]. - The company has maintained stable production operations following an explosion incident, with all production lines returning to normal by the end of September[41]. - The company has maintained a good integrity status, with no significant debts or obligations unmet during the reporting period[183]. - The company confirmed that all related party transactions were conducted at market prices and did not significantly affect its independence[188]. Future Outlook and Strategy - The company plans to continue optimizing its product structure and improving product quality to meet the growing demand for petrochemical products in China[34]. - The company plans to process 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, and 680,000 tons of paraxylene[128]. - The company aims to achieve commercial operation of the first phase of the 48K tow project and start construction of the second phase within the year[132]. - The company anticipates capital expenditure of approximately RMB 3.7 billion for 2023[123]. - The company is committed to enhancing safety and environmental standards, focusing on risk management and compliance with environmental regulations[128]. - The company plans to strengthen its core industries, particularly in high-end new materials like carbon fiber, and aims to transition towards renewable energy sources[127]. - The company will optimize its management structure to improve efficiency and enhance internal capabilities[130]. - The company emphasizes talent development and employee satisfaction to support its long-term growth strategy[133]. Market and Industry Conditions - The company faces challenges including fluctuating oil prices, market uncertainties, and rising investment costs, which may impact financial stability and operational efficiency[126]. - The company’s revenue is significantly affected by the cyclical nature of the oil and petrochemical markets, with potential adverse impacts from rising crude oil prices and falling petrochemical product prices[134]. - The company’s ability to pass on increased costs due to rising crude oil prices to customers is dependent on market conditions and government regulations, which may lead to delays[135]. - The company is subject to strict environmental regulations in China, and future regulatory changes could result in additional costs[137]. - The company’s operations and financial results may be adversely affected by fluctuations in the exchange rate of the Renminbi against other currencies, particularly the US dollar[138]. - Recent government policies have provided opportunities for high-quality development in the petrochemical industry, particularly in new materials and high-end chemicals[144]. Related Party Transactions - The company is involved in significant related party transactions with its controlling shareholder, Sinopec Corp, which could impact its business and economic benefits[140]. - Sinopec Corp holds approximately 50.44% of the company's shares, giving it absolute control and the potential to influence the company's operations and financial decisions[141]. - The company engaged in a technology development contract with Sinopec Corp for the research and development of high-performance carbon fiber equipment, with a total cost of RMB 44,400,000, to be paid in two installments[190]. - The company signed a new product supply and sales service framework agreement with Sinopec Group, effective for three years until December 31, 2025[184]. Compliance and Legal Matters - The company has no significant litigation or arbitration matters during the reporting period[181]. - The company has not faced any administrative penalties or investigations by the China Securities Regulatory Commission during the reporting period[182].

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 Q3 2022 was CNY 11,878,206, a decrease of 51.96% compared to the same period last year[5] - The net profit attributable to shareholders for Q3 2022 was a loss of CNY 1,566,776, representing a decline of 317.35% year-over-year[5] - 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[5] - Total operating revenue for the first three quarters of 2022 was CNY 57,778,561, a decrease of 6.7% compared to CNY 61,863,093 in the same period of 2021[18] - Net profit for the first three quarters of 2022 was a loss of CNY 1,998,274, compared to a profit of CNY 1,971,400 in the same period of 2021[18] - The company recorded a total comprehensive loss of CNY 1,777,831 for the first three quarters of 2022, compared to a total comprehensive income of CNY 2,048,850 in the same period of 2021[19] - The company's investment income for the first three quarters of 2022 was a loss of CNY 185,032, a decline from a profit of CNY 777,741 in the same period of 2021[18] Cash Flow and Assets - The net cash flow from operating activities for Q3 2022 was CNY 1,670,792, a decrease of 18.34% compared to the same period last year[5] - The company reported a net cash outflow from operating activities of CNY 4,734,330 for the first three quarters of 2022, compared to an outflow of CNY 343,611 in the previous year[21] - Cash and cash equivalents at the end of the third quarter of 2022 amounted to CNY 5,494,687, an increase from CNY 3,227,641 at the end of the same period in 2021[22] - The company achieved a net cash inflow from investing activities of CNY 3,790,376 in the first three quarters of 2022, a significant improvement from a net outflow of CNY 3,877,409 in the previous year[21] - The company's cash and cash equivalents decreased to ¥9,087,458,000 from ¥12,498,617,000 year-over-year, reflecting a decline of approximately 27.4%[15] - Total assets at the end of Q3 2022 were CNY 44,689,289, a decrease of 4.99% from the end of the previous year[7] - Total assets as of September 30, 2022, amounted to ¥44,689,289,000, down from ¥47,038,622,000 at the end of 2021, indicating a decrease of about 5.7%[17] Shareholder Information - As of September 30, 2022, the total number of ordinary shareholders was 102,846, with the largest shareholder, Sinopec Limited, holding 5,459,455,000 shares, representing 50.44% of the total[11] - The equity attributable to shareholders at the end of Q3 2022 was CNY 27,259,789, down 9.92% from the previous year-end[7] - Sinopec Limited's equity attributable to shareholders decreased to ¥27,259,789,000 from ¥30,260,172,000, a decline of approximately 10.0%[17] Operational Challenges - The company reported a significant decline in performance due to an explosion incident at its 1 ethylene glycol unit on June 18, 2022, leading to a halt in major production facilities[10] - The average price increase of petrochemical products was lower than the average increase in crude oil prices, contributing to the decline in net profit for the year-to-date period[10] - The company has resumed operations at its major facilities following the incident, indicating a potential recovery in production capacity[10] - The company successfully completed the restoration of production capabilities after an explosion incident on June 18, 2022, with the second ethylene glycol unit resuming operations by September 30, 2022[13] Other Information - The company has not reported any new product launches or technological advancements in the current quarter[12] - The company has not disclosed any significant mergers or acquisitions during the reporting period[12] - Total operating costs for the first three quarters of 2022 were CNY 59,745,874, slightly down from CNY 60,150,245 in the previous year[18] - Basic and diluted earnings per share for the third quarter of 2022 were both CNY -0.185, compared to CNY 0.182 in the same quarter of 2021[19] - The company's total liabilities increased to ¥17,301,164,000 from ¥16,643,191,000, representing an increase of approximately 3.9%[17] - The inventory level rose to ¥7,466,394,000, compared to ¥5,923,525,000 in the previous year, marking an increase of about 26.1%[15] - The weighted average return on equity for Q3 2022 was -5.472%, a decrease of 7.88 percentage points year-over-year[5]

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, an increase of 23.60% 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 decrease of 129.30% compared to 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, a decline of 135.04% from RMB 1,244,189 in the same period last year[9]. - The basic loss per share for the reporting period was RMB -0.040, compared to earnings of RMB 0.115 in the same period last year[10]. - The diluted loss per share for the reporting period was also RMB -0.040, compared to earnings of RMB 0.115 in the previous year[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 net profit (loss) after deducting non-recurring gains and losses for the current reporting period (January to June) was -402,544,000, a decrease of 134.42% compared to the same period last year[87]. - The EBITDA to total debt ratio decreased to 0.11, down 80.00% from 0.55 in the previous year[87]. - The interest coverage ratio fell to -7.84, a decline of 119.38% from 40.45 in the previous year[87]. - The cash interest coverage ratio was -127.87, down 104.95% from -62.39 in the previous year[87]. Cash Flow and Investments - 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]. - The company generated a net cash inflow of RMB 1,776,708 thousand from investing activities in the first half of 2022, a significant improvement from a net cash outflow of RMB 3,106,358 thousand in the previous year[33]. - The company's net cash inflow from financing activities was RMB 1,996,321 thousand in the first half of 2022, recovering from a loss of RMB (51,020) thousand in the first half of 2021[198]. - The total cash inflow from operating activities for the first half of 2022 reached RMB 50,632,846 thousand, a 31.1% increase from RMB 38,606,063 thousand in the same period of 2021[197]. - Cash outflow from operating activities totaled RMB 57,037,968 thousand, compared to RMB 40,995,615 thousand in the first half of 2021, resulting in a net cash flow from operating activities of RMB (6,405,122) thousand[197]. 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 finished oil was 3.1534 million tons, a year-on-year decrease of 12.85%[18]. - The production of liquefied gas increased by 23.41% year-on-year to 326,300 tons[18]. - The production of ethylene increased by 16.67% year-on-year to 353,500 tons[18]. - The production of paraxylene increased significantly by 116.01% year-on-year to 318,400 tons[18]. - The company's product sales rate was 98.74%, with a collection rate of 100% for accounts receivable excluding related parties[18]. - In the first half of 2022, the company achieved a net sales amount of RMB 40.142 billion, an increase of 26.89% compared to the same period last year[21]. - 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]. Costs and Expenses - The company's sales cost for the first half of 2022 was RMB 40.681 billion, an increase of 31.95% year-on-year, accounting for 101.34% of net sales[21]. - Operating costs for the first half of 2022 reached RMB 39,118,453 thousand, a 35.59% increase compared to RMB 28,849,768 thousand in the same period of 2021, primarily due to rising raw material and energy costs[33]. - The unit processing cost of crude oil was RMB 4,540.43 per ton, an increase of 59.36% compared to the same period last year[22]. - The company recorded an investment loss of RMB (50,675) thousand in the first half of 2022, compared to a gain of RMB 602,510 thousand in the same period of 2021[194]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 42,481,112, a decrease of 9.69% from RMB 47,038,622 at the end of the previous year[9]. - The total liabilities decreased from RMB 9,400,510,000 as of December 31, 2021, to RMB 7,987,334,000 as of June 30, 2022, a reduction of approximately 15.1%[149]. - The company's total current liabilities amounted to RMB 12,614,058 thousand, a decrease of 20.5% from RMB 15,795,743 thousand at the end of 2021[192]. - The company's total equity attributable to shareholders decreased to RMB 28,858,796 thousand, down 4.3% from RMB 30,242,139 thousand[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 hazardous waste disposal during the first half of 2022[77]. - The company has maintained its "Green Enterprise" title from Sinopec Group and continues to implement high standards for environmental management[76]. - The company has not faced any administrative penalties due to environmental issues during the reporting period[84]. 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 (excluding depreciation and amortization) increased to RMB 34,884,000 in 2022 from RMB 25,208,000 in 2021, showing a rise of about 38.4%[130]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 105,475[88]. - The largest shareholder, Sinopec Corp., held 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].

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 reported a total revenue of RMB 50,000 million for the first half of 2022, representing a year-on-year increase of 15%[10]. - The net profit attributable to shareholders was RMB 3,500 million, up 20% compared to the same period last year[10]. - The company's revenue for the first half of 2022 was RMB 45.90 billion, an increase of 23.60% compared to RMB 37.14 billion in the same period last year[19]. - The total loss attributable to shareholders for the first half of 2022 was RMB 436.01 million, a decrease of 135.04% from a profit of RMB 1.24 billion in the previous year[19]. - The company achieved a net sales revenue of RMB 40.142 billion in the first half of 2022, an increase of 26.89% compared to the same period last year[37]. - The company reported a net profit of RMB (436,009) thousand for the first half of 2022, compared to a profit of RMB 5,188 thousand in the same period of 2021, reflecting a significant decline[183]. - The total profit for the six months ended June 30, 2022, was a loss of RMB 442,601 thousand, compared to a profit of RMB 1,510,713 thousand in 2021[171]. - The company’s tax expenses for the first half of 2022 were a benefit of RMB (11,780) thousand, compared to an expense of RMB 261,344 thousand in 2021[171]. Cash Flow and Investments - The net cash flow used in operating activities was RMB -6.41 billion, representing a 168.05% increase in cash outflow compared to RMB -2.39 billion in the same period last year[19]. - The total 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[177]. - The net cash outflow from operating activities was RMB 6,405,122 thousand, compared to a net outflow of RMB 2,389,552 thousand in the first half of 2021, representing a deterioration of 168.5%[177]. - Cash inflow from investment activities amounted to RMB 6,761,122 thousand, up from RMB 6,037,502 thousand in the same period of 2021, reflecting an increase of 12.0%[179]. - The net cash outflow from investment activities was RMB 4,984,414 thousand, a decrease of 45.5% compared to RMB 9,143,860 thousand in the first half of 2021[179]. - The total cash and cash equivalents at the end of the period were RMB 2,438,650 thousand, compared to RMB 1,367,415 thousand at the end of the same period in 2021, indicating an increase of 78.4%[179]. Operational Highlights - The company processed 5.80 million tons of crude oil, a decrease of 6.68% year-on-year[31]. - The production of main products decreased by 8.07% to 5.43 million tons compared to the same period last year[31]. - The production of aviation kerosene fell by 35.32% to 39.38 thousand tons compared to the previous year[31]. - The company achieved a product sales rate of 98.74% and a cash recovery rate of 100% (excluding related parties) during the reporting period[31]. - The company faced significant challenges due to the pandemic and supply chain disruptions, impacting overall market demand and production capabilities[26]. Research and Development - Research and development expenses increased by 12% year-on-year, totaling RMB 1,200 million, reflecting the company's commitment to innovation[10]. - The company applied for 55 patents and received 39 patent authorizations during the reporting period, emphasizing its commitment to innovation and intellectual property protection[33]. - The company aims to accelerate the development of carbon fiber and composite materials, as well as advance digital transformation initiatives[49]. Sustainability and Environmental Initiatives - The company aims to reduce carbon emissions by 5% by 2025 as part of its sustainability strategy[10]. - The company has achieved a 100% compliance rate for wastewater discharge standards and hazardous waste disposal during the first half of 2022[96]. - The company has maintained a 100% compliance rate for air pollutant emissions from its thermal power boilers, meeting the standards set by local regulations[97]. - The company has actively participated in poverty alleviation efforts, completing consumption assistance of over RMB 3.62 million in impoverished areas of Yunnan Province[106]. - The company has implemented a high standard green enterprise action plan, focusing on pollution prevention and control measures[95]. Market Position and Strategy - The company plans to enhance its market expansion efforts, focusing on increasing production capacity by 10% in the next fiscal year[6]. - The management provided a performance guidance of 8-10% revenue growth for the second half of 2022[10]. - The company is exploring potential mergers and acquisitions to strengthen its market position in the petrochemical sector[10]. - The company is actively adjusting its product structure and improving product quality to enhance competitiveness in the market[25]. Risks and Challenges - The company has identified key risks including fluctuating oil prices and regulatory changes that may impact operations[5]. - The company faces risks related to environmental regulations that may impose additional costs on its operations[73]. - The company is subject to currency fluctuations, particularly the impact of RMB depreciation on costs and profitability, as a significant portion of its procurement is denominated in foreign currencies[74]. - The company’s ability to pass on increased crude oil costs to customers is limited by market conditions and government regulations[71]. - The company’s business operations may be adversely affected by cyclical characteristics of the oil and petrochemical markets[70]. Shareholder Information - The company approved a cash dividend of RMB 0.1 per share for the fiscal year 2021, totaling RMB 1,082,381,350 based on 10,823,813,500 shares[81]. - The largest shareholder, China Petroleum & Chemical Corporation, held 5,459,455,000 A shares, representing 50.44% of the total shares[141]. - The total number of ordinary shareholders as of the end of the reporting period was 105,475[140]. - The company did not issue any new securities during the reporting period[137]. Financial Ratios and Metrics - The company's current ratio was 132.40%, a slight decrease of 0.12% compared to the previous year[152]. - The quick ratio decreased by 14.48% to 80.15%, attributed to increased inventory due to rising international crude oil prices[152]. - The debt-to-asset ratio improved by 3.66% to 31.72% compared to the end of the previous year[152]. - The interest coverage ratio fell by 119.38% to -7.84, indicating a substantial decline in the company's ability to cover interest expenses[153]. - The EBITDA interest coverage ratio dropped by 85.10% to 9.68, highlighting the financial strain faced by the company[153].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 26,006,070, representing a year-on-year increase of 27.61%[4] - The net profit attributable to shareholders of the listed company was CNY 213,510, showing a significant decline of 81.81% compared to the same period last year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 241,668, down 79.14% year-on-year[4] - The basic earnings per share for the period was CNY 0.020, a decrease of 81.48% compared to the previous year[4] - Total operating revenue for Q1 2022 was CNY 26,006,070, an increase of 27.5% compared to CNY 20,379,079 in Q1 2021[15] - Net profit for Q1 2022 was CNY 214,850, a decrease of 81.7% from CNY 1,175,274 in Q1 2021[15] - Operating profit for Q1 2022 was CNY 311,893, down 79.2% from CNY 1,504,446 in Q1 2021[15] - Total comprehensive income for Q1 2022 was CNY 420,646, a decrease of 64.3% from CNY 1,177,086 in Q1 2021[16] - Basic earnings per share for Q1 2022 were CNY 0.020, down from CNY 0.108 in Q1 2021[16] Cash Flow and Assets - The net cash flow from operating activities was CNY -1,785,568, indicating a significant cash outflow[4] - Cash flow from operating activities showed a net outflow of CNY 1,785,568, compared to a net outflow of CNY 322,532 in Q1 2021[18] - Cash and cash equivalents at the end of Q1 2022 were CNY 4,987,376, a decrease from CNY 6,916,408 at the end of Q1 2021[19] - Cash inflow from financing activities in Q1 2022 was CNY 6,454,975, compared to CNY 890,000 in Q1 2021[18] - The total assets at the end of the reporting period were CNY 47,038,622, an increase of 14.24% from the end of the previous year[4] - As of March 31, 2022, total assets amounted to RMB 53,737,111, an increase from RMB 47,038,622 as of December 31, 2021, representing a growth of approximately 14.4%[12] - Current assets totaled RMB 25,755,453, up from RMB 20,932,276, indicating a rise of about 23.5% year-over-year[12] - Inventory increased significantly to RMB 9,479,927 from RMB 5,923,525, reflecting a growth of approximately 60.5%[12] - Total liabilities reached RMB 22,897,700, compared to RMB 16,643,191, marking an increase of around 37.5%[13] - The company's short-term borrowings rose to RMB 3,040,000 from RMB 1,540,000, which is an increase of about 97.4%[12] - The total equity attributable to shareholders was RMB 30,702,812, up from RMB 30,260,172, indicating a growth of about 1.5%[13] - The company reported a significant increase in accounts receivable, which rose to RMB 1,978,371 from RMB 1,169,405, representing a growth of approximately 69%[12] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 106,105[9] - The largest shareholder, Sinopec Limited, held 50.44% of the shares, while the second-largest shareholder, Hong Kong Central Clearing Limited, held 31.91%[9] Operational Insights - The company experienced a substantial increase in product costs due to a sharp rise in crude oil prices, impacting overall performance negatively[7] - The company has not indicated any new product launches or technological advancements during this reporting period[11] - There are no significant mergers or acquisitions reported in the current quarter[11] - Research and development expenses for Q1 2022 were CNY 11,867, slightly down from CNY 12,236 in Q1 2021[15] - Total operating costs for Q1 2022 were CNY 25,599,241, an increase of 33.6% from CNY 19,157,566 in Q1 2021[15] - The weighted average return on equity was 0.700%, a decrease of 3.24 percentage points compared to the previous year[4]

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].