2022-03-31 16:00Financial Performance - The company's operating revenue for 2021 reached RMB 2,614,349 million, representing a 35.2% increase compared to RMB 1,933,836 million in 2020[12]. - The net profit attributable to shareholders of the parent company was RMB 92,161 million in 2021, up from RMB 19,002 million in 2020, marking a significant increase[12]. - The basic and diluted earnings per share for 2021 were RMB 0.50, compared to RMB 0.10 in 2020, reflecting a substantial growth[12]. - The total assets as of the end of 2021 amounted to RMB 2,502,533 million, a slight increase of 0.6% from RMB 2,488,400 million at the end of 2020[12]. - The company reported a net cash flow from operating activities of RMB 341,469 million in 2021, which is a 7.2% increase from RMB 318,575 million in 2020[12]. - The weighted average return on net assets for 2021 was 7.4%, a significant increase of 5.8 percentage points from 1.6% in 2020[12]. - The total equity attributable to shareholders of the parent company increased to RMB 1,263,815 million at the end of 2021, up 4.0% from RMB 1,215,421 million at the end of 2020[12]. - The company achieved a revenue of RMB 2,614.35 billion in 2021, representing a year-on-year growth of 35.2%[32]. - Net profit attributable to shareholders reached RMB 92.17 billion, an increase of RMB 73.16 billion compared to the previous year[32]. - The total revenue for 2021 was RMB 2,551.74 billion, reflecting a 36.1% increase compared to the previous year[82]. Dividend Distribution - The company proposed a cash dividend of RMB 0.09622 per share, totaling RMB 17.61 billion based on the total share capital of 183,020,977,818 shares as of December 31, 2021[4]. - The company distributed cash dividends totaling RMB 41.476 billion in 2021, which is 45% of the net profit attributable to shareholders[89]. - The cash dividend for 2021 was set at RMB 0.09622 per share, amounting to a total of RMB 17.610 billion[90]. - The cash dividend payout ratio for 2020 was notably high at 168.4%, reflecting a significant distribution relative to net profit[88]. - The company has a policy to distribute at least 30% of the net profit as cash dividends when conditions are met[88]. - The company will pay the 2021 final dividend to A and H shareholders on June 28 and July 29, 2022, respectively[91]. - The company is obligated to withhold a 10% corporate income tax on dividends paid to non-resident enterprise shareholders[92]. - The company will withhold personal income tax at a rate of 20% for individual shareholders from countries without a tax agreement with China[93]. - The company has established a clear process for shareholders to claim tax treaty benefits, ensuring compliance with tax regulations[96]. Corporate Governance - The company has a strong governance structure, with a board of directors and supervisory board ensuring compliance and accountability[3]. - The company emphasizes the importance of accurate financial reporting and has taken measures to ensure no major omissions or misleading statements in its annual report[3]. - The company operates under both Chinese Accounting Standards and International Financial Reporting Standards, reflecting its commitment to transparency[3]. - The company has maintained a transparent information disclosure system, ensuring timely and accurate reporting to all shareholders[148]. - The board of directors held 6 meetings in 2021, resulting in 31 resolutions, ensuring effective governance and oversight[161]. - The company has complied with all provisions of the Corporate Governance Code as of December 31, 2021[159]. - Five independent non-executive directors confirmed their independence and compliance with the relevant standards[164]. - The company has established five specialized committees to support the board's decision-making processes[164]. - The audit committee is responsible for overseeing the integrity of financial reporting and internal controls, meeting at least annually with independent auditors[176]. - The company recognizes board diversity as a key factor for maintaining competitive advantage and achieving sustainable development[172]. Operational Highlights - The company is a leading oil and gas producer and seller in China, with significant operations in exploration, development, transportation, and sales of oil and gas[6]. - The company is focused on maintaining its market position and exploring new opportunities for growth in the oil and gas sector[6]. - The company aims to build a world-class comprehensive international energy company, focusing on high-quality development and innovation strategies[29]. - The company is committed to optimizing production operations and enhancing efficiency amid the pandemic[29]. - The company plans to produce 898.6 million barrels of crude oil and 4,625.1 billion cubic feet of marketable natural gas in 2022[33]. - The company’s domestic crude oil production reached 753.4 million barrels in 2021, a year-on-year increase of 1.3%[42]. - The total sales of gasoline, kerosene, and diesel amounted to 163.3 million tons, reflecting a 1.3% increase compared to the previous year[49]. - The company achieved a natural gas production of 4,420.0 billion cubic feet, a year-on-year increase of 4.7%[44]. - The number of gas stations operated by the company reached 22,800, an increase of 0.8% from the previous year[49]. - The company established a new energy research institute in Shenzhen to enhance its capabilities in renewable energy development[42]. Risk Management - The company emphasizes the importance of internal control and risk management, continuously enhancing its internal control system to prevent and mitigate major risks[149]. - The company actively implements measures to mitigate various risks in its operations, although it cannot completely eliminate uncertainties[198]. - Regulatory and tax policy risks are significant external factors affecting the company's operations, particularly in the oil and gas sector, which is subject to government oversight[199]. - The company is exposed to price volatility risks in oil and gas products, influenced by global political and economic changes, supply and demand conditions, and international events[200]. Related Party Transactions - The company has no significant related party transactions or major contracts that generated profits exceeding 10% of the total profit for the year[99][101]. - The company continues to engage in ongoing related party transactions with China National Petroleum Corporation (CNPC) as approved by independent directors and shareholders for the period from January 1, 2021, to December 31, 2023[122]. - The total agreement for mutual supply of products and services between the company and CNPC is effective from January 1, 2021, for a duration of three years[123]. - The company has confirmed that all related party transactions were conducted in the ordinary course of business and in compliance with the Hong Kong Stock Exchange Listing Rules[143]. - The company provided funding to related parties totaling RMB 3,565 million during the reporting period, with a balance of RMB 21,092 million at the end of the period[145]. Strategic Initiatives - The company has implemented strategies for digital transformation and risk prevention to create value for shareholders[30]. - The company is committed to advancing clean production and reducing carbon emissions as part of its green low-carbon transition strategy[36]. - The company has established a sustainable development committee to enhance its ESG management functions[147]. - The company is focused on green and low-carbon development, aligning its strategies with national goals of carbon peak and carbon neutrality[154].