2025-03-31 00:10Financial Performance - The company's operating revenue for 2024 was CNY 2,937,981 million, a decrease of 2.5% compared to CNY 3,012,812 million in 2023[12]. - The net profit attributable to shareholders of the parent company for 2024 was CNY 164,684 million, representing a 2.0% increase from CNY 161,416 million in 2023[12]. - The basic and diluted earnings per share for 2024 were CNY 0.90, up from CNY 0.88 in 2023, reflecting a 2.0% increase[12]. - The total assets at the end of 2024 were CNY 2,753,007 million, a slight decrease of 0.2% from CNY 2,759,237 million at the end of 2023[15]. - The total equity attributable to shareholders of the parent company increased by 4.4% to CNY 1,515,371 million in 2024 from CNY 1,451,333 million in 2023[15]. - The net cash flow from operating activities for 2024 was CNY 406,532 million, down 11.0% from CNY 456,847 million in 2023[15]. - The company reported a net asset return rate of 10.9% for 2024, slightly down from 11.1% in 2023[12]. - Capital expenditures for 2024 were CNY 275,849 million, a marginal increase from CNY 275,393 million in 2023[12]. - The company's operating expenses for 2024 were RMB 2,704.03 billion, a decrease of 2.6% from RMB 2,776.95 billion in 2023[71]. Dividends and Shareholder Information - The company plans to distribute a final dividend of RMB 0.25 per share, totaling approximately RMB 45.755 billion based on a total share capital of 183,020,977,818 shares as of December 31, 2024[6]. - The total dividend payout for 2024 is based on a net profit attributable to shareholders of RMB 457.55 billion[110]. - Cash dividends for 2024 amounted to RMB 86.020 million, representing 52.2% of the net profit for the year[109]. - The proposed final dividend is subject to approval at the 2024 annual general meeting of shareholders[110]. - A shares will receive dividends in RMB, while H shares will be paid in HKD, with the exchange rate based on the average RMB to HKD rate published by the People's Bank of China one week prior to the dividend declaration[112]. - Individual shareholders holding A shares for over one year will be exempt from personal income tax on dividends, while those holding for one year or less will not have tax withheld[113]. - The company will withhold a 10% corporate income tax on dividends paid to qualified foreign institutional investors (QFII)[115]. - The company will determine the residency status of H share individual shareholders based on the address recorded in the shareholder register as of June 24, 2025[118]. - For mainland individual investors through the Stock Connect programs, a 20% personal income tax will be withheld on dividends received from H shares[120]. - The final dividend payment dates are set for June 25, 2025, for A shares and July 24, 2025, for H shares[111]. Corporate Governance and Compliance - The financial reports have been audited by KPMG Huazhen and KPMG, both issuing unqualified audit opinions[5]. - The company emphasizes the importance of accurate and complete financial reporting, ensuring no significant omissions or misleading statements[5]. - The company has a strong governance structure, with the board and management committed to transparency and accountability in financial disclosures[5]. - The company operates under both Chinese and international financial reporting standards, reflecting its global presence and compliance[5]. - The company has established a comprehensive internal control system to enhance risk management capabilities and ensure accurate financial reporting[171]. - The governance structure has been improved, with the board overseeing compliance with regulatory requirements and internal policies[166]. - The board of directors consists of at least one-third independent non-executive directors, ensuring compliance with the Hong Kong Listing Rules[182]. - The company has adopted the Corporate Governance Code and has complied with all provisions except for one specific requirement regarding the frequency of board meetings[180]. - The independent non-executive directors confirmed that the continuing connected transactions are conducted in the ordinary course of business and on normal commercial terms[162]. Business Operations and Strategy - The company is one of the largest oil and gas producers and sellers in China, with a focus on exploration, development, production, transportation, and sales of oil and gas, as well as new energy businesses[7]. - The company has a diversified business model that includes refining, chemical production, and trading, alongside its core oil and gas operations[7]. - The company is focused on future growth opportunities, including market expansion and potential mergers and acquisitions[6]. - The company plans to produce 936.2 million barrels of crude oil and 5,341.0 billion cubic feet of marketable natural gas in 2025[47]. - The company aims to process 1,330.9 million barrels of crude oil in 2025 as part of its refining and chemical business strategy[48]. - The company is committed to green and low-carbon strategies, focusing on innovation and market expansion to enhance its sustainable development capabilities[46]. - The company has a robust cash flow management strategy to support shareholder returns and operational investments[6]. Market and Production Insights - In 2024, the average price of crude oil achieved by the company was $74.70 per barrel, a decrease of 2.5% from $76.60 per barrel in the previous year[45]. - The average Brent crude oil price in 2024 was $80.76 per barrel, a decrease of 2.3% year-on-year[51]. - The domestic industrial crude oil production in 2024 was 21.28 million tons, reflecting a growth of 1.8%[51]. - The domestic refined oil processing volume in 2024 was 70.84 million tons, a decrease of 1.6% year-on-year[52]. - The company's domestic oil production was 777.0 million barrels, up 0.4% from 773.7 million barrels in the previous year[54]. - The total oil and gas equivalent production was 1,797.4 million barrels, reflecting a 2.2% increase compared to 1,759.2 million barrels in 2023[56]. - The company achieved a natural gas sales volume of 5,133.8 billion cubic feet, up 4.1% from 4,932.4 billion cubic feet in the previous year[56]. - The total sales of gasoline, kerosene, and diesel amounted to 15.9 million tons, a decrease of 4.1% from 16.58 million tons in the previous year[65]. Acquisitions and Investments - The company completed the acquisition of 100% equity in China Petroleum Group Electric Power Co., Ltd. in 2024, which will be consolidated into the financial statements from October 29, 2024[13]. - The company acquired 100% equity of Zhongyou Electric Power for RMB 5.979 billion, effective from October 29, 2024[136]. - The company holds a 54.38% stake in Kunlun Energy Co., with an initial investment of HKD 25.802 billion[123]. - The company has a 32.00% stake in Zhongyou Finance, with an initial investment of RMB 10.223 billion and a book value of RMB 28.221 billion[125]. Related Party Transactions - The company continues to engage in several ongoing related party transactions with China National Petroleum Corporation (CNPC), with the upper limit of transaction amounts proposed for the period from January 1, 2024, to December 31, 2026[143]. - The total agreement for mutual supply of products and services between the company and CNPC will be effective from January 1, 2024, for a duration of three years[144]. - The company expects that the products and services provided by CNPC will exceed those provided to CNPC in both quantity and variety[145]. - The pricing principles for products and services under the total agreement include government pricing, market prices, cost prices, or agreed prices[146]. Risk Management and Internal Controls - The company has established a risk management system to identify, analyze, evaluate, and respond to risks that may materially impact its strategy, operations, compliance, and financial condition[173]. - The board of directors is responsible for establishing and maintaining an adequate internal control and risk management system, which was evaluated as effective and sufficient for the year ending December 31, 2024[172]. - The company received an unqualified audit opinion from KPMG Huazhen on the effectiveness of internal controls related to financial reporting[173].