2020-03-26 16:00Financial Performance - The company's operating revenue for 2019 was RMB 2,516,810 million, representing a 6.0% increase from RMB 2,374,934 million in 2018[10]. - The net profit attributable to shareholders of the parent company for 2019 was RMB 45,677 million, a decrease of 13.9% compared to RMB 53,030 million in 2018[10]. - The basic and diluted earnings per share for 2019 were RMB 0.25, down from RMB 0.29 in 2018, reflecting a 13.9% decline[10]. - The total assets at the end of 2019 amounted to RMB 2,733,190 million, a 12.0% increase from RMB 2,441,169 million at the end of 2018[10]. - The net cash flow from operating activities for 2019 was RMB 359,610 million, showing a slight increase of 1.8% from RMB 353,256 million in 2018[10]. - The company's total operating expenses in 2019 were RMB 2,395.05 billion, a 6.4% increase from RMB 2,251.99 billion in 2018[52]. - The company's operating profit for 2019 was RMB 121.76 billion, a slight decline of 1.0% from RMB 122.94 billion in 2018[54]. - The company's interest expenses rose by 41.4% to RMB 26.78 billion in 2019 from RMB 18.94 billion in 2018, primarily due to the impact of new leasing standards[54]. - The company's total tax expenses, excluding income tax, increased by 3.5% to RMB 228.44 billion in 2019 from RMB 220.68 billion in 2018[53]. Dividend Distribution - The company plans to distribute a final dividend of RMB 0.06601 per share based on a total share capital of 183,020,977,818 shares as of December 31, 2019, which includes a special dividend of RMB 0.02358 per share[4]. - The company distributed cash dividends of RMB 23,793 million in 2017, RMB 32,724 million in 2018, and RMB 26,293 million in 2019, representing 104.4%, 62.2%, and 57.6% of the net profit respectively[82]. - The company has a cash dividend policy to distribute at least 30% of the net profit attributable to the parent company if the net profit and accumulated undistributed profits are positive, and cash flow supports sustainable development[82]. - The proposed final dividend is subject to approval at the annual general meeting on June 11, 2020, and will be paid to shareholders on June 30, 2020, for A shares and around July 31, 2020, for H shares[84]. - The company will withhold a 10% corporate income tax on dividends paid to non-resident enterprise shareholders listed on the H share register[85]. Shareholder Information - As of December 31, 2019, the total number of shareholders was 618,149, with 611,719 domestic A-share shareholders and 6,430 overseas H-share shareholders[18]. - By February 29, 2020, the total number of shareholders increased to 647,910, with 641,517 domestic A-share shareholders and 6,393 overseas H-share shareholders[18]. - The largest shareholder, China National Petroleum Corporation, held 146,882,339,136 A-shares, representing 80.25% of the total A-share capital[21]. - The second largest shareholder, Hong Kong Central Clearing Limited, held 20,896,272,289 H-shares, accounting for 11.42% of the total H-share capital[21]. - The top ten shareholders collectively held a significant portion of the company's shares, with the top three alone holding over 94% of the A-shares[21]. Operational Highlights - The company is one of the largest oil and gas producers and sellers in China, with significant operations in exploration, development, production, and sales of crude oil and natural gas[5]. - Domestic crude oil production reached 19.11 million tons, an increase of 1.0% year-on-year[33]. - In 2019, domestic natural gas production was 177.7 billion cubic meters, up 11.5% year-on-year, while natural gas imports increased by 6.5% to 132.2 billion cubic meters[37]. - The company processed 1,228.4 million barrels of crude oil, a 4.1% increase from the previous year, with a crude oil processing load rate of 85.1%[44]. - The company's overseas oil and gas business produced 215.4 million barrels of oil equivalent, representing a 5.7% increase compared to the previous year[42]. Capital Expenditure and Investments - The company's capital expenditure for 2019 was RMB 296,776 million, an increase from RMB 256,106 million in 2018[10]. - The exploration and production segment's capital expenditure was RMB 230.117 billion, focusing on key domestic basins and overseas projects to achieve stable oil and gas growth[74]. - The refining and chemical segment's capital expenditure in 2019 was RMB 21.279 billion, primarily for major refining and chemical projects, including the Guangdong Petrochemical integration project[75]. - The sales segment's capital expenditure in 2019 was RMB 17.618 billion, aimed at expanding the domestic refined oil market and enhancing safety and environmental measures[75]. - The natural gas and pipeline segment's capital expenditure in 2019 was RMB 27.004 billion, focusing on key gas transmission projects and LNG storage facilities[75]. Risk Management and Compliance - The company actively manages various risks, including industry regulation, tax policy changes, and oil and gas price fluctuations, which could impact operational performance[165][166]. - The company is committed to enhancing its internal control and risk management systems to prevent significant misstatements or losses[130]. - The internal control system was evaluated as effective as of December 31, 2019, in compliance with international standards[130]. - The company emphasized the importance of information disclosure, ensuring timely and accurate reporting to all shareholders[128]. - The company acknowledges the potential impact of climate change regulations on operational costs and strategic investments[171]. Corporate Governance - The board of directors consists of 11 members, with at least one independent non-executive director possessing appropriate professional qualifications[136]. - The company held 6 board meetings in 2019, resulting in 26 board resolutions[138]. - The company has received independence confirmation letters from five independent non-executive directors, ensuring compliance with the relevant rules[140]. - The company has a compensation committee consisting of 3 directors, including 2 independent non-executive directors, responsible for evaluating the performance of directors and senior management[150]. - The supervisory board consists of 9 members, with 5 shareholder representatives and 4 employee representatives, responsible for auditing financial reports and supervising management actions[154]. Social Responsibility - The company invested RMB 229.69 million in poverty alleviation efforts, focusing on targeted support and donations to impoverished areas[192]. - The company allocated over RMB 1.08 billion for targeted poverty alleviation, with an average of over RMB 10 million per county, marking a 73% increase from 2018[192]. - The company actively fulfilled its social responsibilities, donating RMB 48.26 million for education and disaster relief in 2019[191]. - The company ensured stable supply of natural gas for people's livelihood amid seasonal supply tightness in 2019[191]. Research and Development - The company had 39,377 R&D personnel at the end of 2019, accounting for 8.55% of the total workforce, remaining stable compared to the previous year[193]. - R&D investment for 2019 was RMB 21.41 billion, a 1.7% increase year-on-year, representing 0.9% of total revenue, with 26.8% of R&D investment capitalized[193]. - The company obtained 2,717 patents in China in 2019, with a total of approximately 18,363 patents held both domestically and internationally as of December 31, 2019[193].