Financial Performance - The net profit attributable to the parent company's shareholders for 2020 was RMB 628,110 thousand, while the net profit according to IFRS was RMB 645,072 thousand[6]. - The company's net sales for 2020 were RMB 61,560.9 million, a decrease from RMB 88,055.7 million in 2019, representing a decline of approximately 30%[11]. - The company's profit before tax for 2020 was RMB 590.8 million, down from RMB 2,656.1 million in 2019, indicating a decrease of about 77.8%[11]. - The net profit attributable to shareholders for 2020 was RMB 645.1 million, a significant drop from RMB 2,215.7 million in 2019, reflecting a decline of approximately 70.9%[11]. - The total operating income for 2020 was RMB 74,705.2 million, down 25.55% from RMB 100,346.0 million in 2019[14]. - The net cash flow from operating activities for 2020 was RMB 1,751.2 million, a decrease of 65.80% compared to RMB 5,121.2 million in 2019[14]. - The total assets as of the end of 2020 were RMB 44,749.2 million, a slight decrease of 1.94% from RMB 45,636.1 million at the end of 2019[14]. - The net assets attributable to shareholders at the end of 2020 were RMB 29,218.0 million, down 2.23% from RMB 29,885.3 million at the end of 2019[14]. - Basic earnings per share decreased by 71.71% to RMB 0.058 from RMB 0.205 in the previous year[15]. - The weighted average return on equity dropped by 5.02 percentage points to 2.127% from 7.143% in the previous year[15]. - Net profit for the year under Chinese accounting standards was RMB 639,436 thousand, down from RMB 2,225,153 thousand in the previous year[16]. - The company's total sales revenue for the year 2020 was RMB 61,560.9 million, a decrease from RMB 88,055.7 million in 2019[66]. - The net profit for the year 2020 was RMB 656.4 million, down from RMB 2,227.1 million in 2019[66]. Dividends and Shareholder Information - The proposed final dividend for 2020 is RMB 0.1 per share (including tax), pending approval at the annual general meeting[6]. - The company plans to distribute dividends to H-share shareholders around July 20, 2021, based on the shareholder registry as of June 28, 2021[166]. - The total number of ordinary shareholders increased to 87,627 by the end of the reporting period, up from 86,305 at the end of the previous month[25]. - The top ten shareholders hold a total of 5,460,000,000 shares, representing 50.44% of the total shares outstanding[26]. - Hong Kong Central Clearing (Agent) Limited holds 3,453,881,030 shares, accounting for 31.91% of the total shares[33]. - China Petroleum & Chemical Corporation is the controlling shareholder, holding 82,709,227,393 shares, which is 68.31% of the total shares[29]. Operational Highlights - The company aims to enhance its operational efficiency and is focused on becoming a "domestically leading, world-class" energy and chemical company[9]. - The company has a strong market presence in East China, which is one of the fastest-growing regions in China for petrochemical products[9]. - The company is actively adjusting its product structure and improving the quality and variety of existing products to meet the growing market demand for petrochemical products in China[9]. - The company produced over 60 different products, with a significant portion used in downstream production[20]. - The company achieved a product sales rate of 100.11% and a receivables collection rate of 100%[52]. - The overall operation of the company's facilities was stable, with a facility stability rate of 98%, an increase of 0.36 percentage points[51]. - The company implemented effective pandemic prevention measures, ensuring zero input, zero spread, and zero infection[50]. Market and Economic Conditions - In 2020, the average price of WTI crude oil was $39.51 per barrel, a decrease of 30.7% year-on-year; Brent crude averaged $41.74 per barrel, down 35.1%[54]. - The company anticipates that global economic recovery will drive an increase in oil demand, despite challenges from geopolitical tensions and supply pressures[126]. - The company faces risks from the cyclical nature of the oil and petrochemical markets, which can significantly impact its operating performance due to price volatility[134]. - The company relies on imported crude oil for over 95% of its production, exposing it to procurement risks and potential cost increases due to fluctuating oil prices[135]. Environmental and Social Responsibility - The company published its 2020 Corporate Social Responsibility report, detailing its efforts in environmental, social, and governance aspects[184]. - The company achieved a 100% compliance rate for wastewater discharge and hazardous waste disposal in 2020[186]. - Total emissions of sulfur dioxide, nitrogen oxides, and volatile organic compounds decreased by 4.74%, 3.37%, and 7.50% year-on-year, respectively[186]. - The company has been recognized as a "Green Enterprise" in 2020, maintaining its status from previous years[185]. - The company has implemented a comprehensive environmental monitoring plan covering seven areas, including water quality and air quality[190]. Governance and Management - The company has maintained its accounting firm, PwC Zhong Tian, for 8 years, with an audit fee of RMB 4,800,000 for domestic services and RMB 3,000,000 for international services[172]. - The company has a focus on strategic development within the chemical industry, as evidenced by Wu Haijun's various roles in related organizations[200]. - The company has seen a significant turnover in its board members, with several directors and supervisors stepping down after the annual general meeting on June 18, 2020[199]. - The company’s strategic committee is chaired by Wu Haijun, who also serves on the nomination committee, indicating a strong leadership role in corporate governance[200]. Risks and Challenges - The company may encounter challenges from stricter environmental regulations that could lead to additional costs[137]. - Currency fluctuations, particularly the depreciation of the RMB, could adversely affect the company's costs and profitability due to its foreign currency transactions[138]. - The company faces risks if Sinopec Limited refuses to conduct transactions or modifies agreements unfavorably, potentially impacting business operations[139]. - The company is subject to stringent environmental policies, including the prohibition and restriction of certain plastic products, which may affect operational costs[141].
上海石油化工股份(00338) - 2020 - 年度财报