2021-03-25 16:00Financial Performance - The company's operating revenue for 2020 was RMB 1,933,836 million, a decrease of 23.2% compared to RMB 2,516,810 million in 2019[12]. - The net profit attributable to shareholders of the parent company for 2020 was RMB 19,002 million, down 58.4% from RMB 45,677 million in 2019[12]. - The basic and diluted earnings per share for 2020 were RMB 0.10, a decrease of 58.4% compared to RMB 0.25 in 2019[12]. - The total assets at the end of 2020 were RMB 2,488,400 million, a decrease of 9.0% from RMB 2,733,190 million at the end of 2019[12]. - The net cash flow from operating activities for 2020 was RMB 318,575 million, down 11.4% from RMB 359,610 million in 2019[12]. - The weighted average return on net assets for 2020 was 1.6%, down from 3.7% in 2019[12]. - The total equity attributable to shareholders of the parent company at the end of 2020 was RMB 1,215,421 million, a decrease of 1.2% from RMB 1,230,428 million at the end of 2019[12]. - The company reported a net non-recurring gain of RMB 30,993 million for 2020, which included a gain from pipeline restructuring transactions of RMB 46,946 million[15]. - The company achieved a total natural gas production of 3,993.8 billion cubic feet domestically, representing a 9.9% increase compared to the previous year[40]. - The company’s confirmed oil reserves decreased by 28.2% to 5,206 million barrels[42]. Dividend and Shareholder Returns - The company proposed a final dividend of RMB 0.08742 per share, totaling RMB 16 billion based on the total share capital of 183,020,977,818 shares as of December 31, 2020[5]. - The company emphasizes its commitment to shareholder returns through dividend distributions[5]. - In 2020, the company distributed cash dividends totaling RMB 32,000 million, which represented 168.4% of the net profit for that year[79]. - The company has maintained a cash dividend policy of at least 30% of the net profit attributable to the parent company, with a historical payout ratio of 45% since 2016[79]. - The cash dividend distribution is conducted twice a year, with the final dividend determined by the shareholders' meeting[79]. Market Position and Operations - 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[7]. - The company has a strong market position, being one of the largest revenue-generating companies in China and among the largest oil companies globally[7]. - The company’s operations include refining, production of basic and derivative chemical products, and trading activities[7]. - The company’s stock is listed on multiple exchanges, including the Shanghai Stock Exchange, Hong Kong Stock Exchange, and New York Stock Exchange[9]. Challenges and Responses - The company has faced challenges due to the COVID-19 pandemic, impacting attendance at board meetings[5]. - The company’s financial performance has been impacted by the pandemic and low oil prices, yet it remains committed to shareholder returns[80]. - The company is committed to optimizing production operations and enhancing risk management amid the ongoing pandemic[29]. - The company has established a leadership group to manage COVID-19 response measures, ensuring the safety of employees while maintaining operational continuity[99]. Future Plans and Strategies - For 2021, the company plans to produce 923.5 million barrels of crude oil and 4,354.0 billion cubic feet of marketable natural gas, totaling 1,649.4 million barrels of oil equivalent[35]. - The company aims to process 1,247.3 million barrels of crude oil in 2021, optimizing resource allocation based on market demand[35]. - The company will focus on enhancing market share and expanding sales through refined marketing strategies and a grid-based customer development system[35]. - The company plans to strengthen its natural gas business by optimizing market layout and ensuring stable supply while exploring new markets in comprehensive energy utilization[36]. - The company will continue to implement high-quality development strategies, emphasizing innovation, resource management, and green transformation[34]. Governance and Compliance - The board of directors confirmed the accuracy and completeness of the annual report, ensuring no significant omissions or misleading statements[4]. - The company operates under both Chinese Accounting Standards and International Financial Reporting Standards, ensuring comprehensive financial reporting[5]. - The independent auditor confirmed that all connected transactions were approved by the board and conducted according to the agreed terms[132]. - The company has adopted corporate governance policies and has complied with all relevant rules and regulations during the reporting period[144]. Environmental and Social Responsibility - The company made donations totaling RMB 38.28 million for education and disaster relief in 2020[198]. - The company contributed RMB 100.01 million in funds and materials for COVID-19 prevention efforts in 2020[198]. - The company incurred RMB 153.03 million in poverty alleviation expenditures in 2020, supporting targeted poverty alleviation projects[198]. - The company contributed to poverty alleviation efforts in 13 districts, achieving complete poverty eradication by the end of 2020[200]. - In 2021, the company aims to leverage its resource and market advantages to enhance project precision and support stable poverty alleviation[200]. Risk Management - The company faces risks related to industry regulation and tax policies, which may impact operational activities such as obtaining exploration and production licenses[173]. - The company is exposed to oil and gas product price volatility risks, which are influenced by global political and economic changes[174]. - The company has implemented a strict HSE management system to mitigate safety risks associated with oil and gas exploration and production[178]. - The company is actively managing foreign exchange risks due to its operations in multiple countries and the potential for significant currency fluctuations[175].