SPC(SH:600688)2025-03-19 12:30Financial Performance - The net profit attributable to shareholders for 2024 is RMB 316,500 thousand according to Chinese accounting standards, and RMB 310,980 thousand according to International Financial Reporting Standards[5]. - In 2024, the company's operating revenue was RMB 87,132,820 thousand, a decrease of 6.32% compared to RMB 93,013,595 thousand in 2023[25]. - The total profit for 2024 was RMB 428,835 thousand, a significant recovery from a loss of RMB 1,715,136 thousand in 2023[25]. - The net profit attributable to shareholders of the parent company was RMB 316,500 thousand, compared to a loss of RMB 1,405,876 thousand in the previous year[25]. - The company's basic earnings per share for 2024 was RMB 0.030, recovering from a loss of RMB 0.130 in 2023[25]. - The company's total sales revenue for 2024 was RMB 74.282 billion, a decrease of 7.24% compared to RMB 80.078 billion in 2023[59]. - The company's operating profit for 2024 was RMB 49.18 million, compared to an operating loss of RMB 1.753 billion in 2023[57]. - The net profit for the year was RMB 317 million, a significant recovery from a loss of RMB 1.349 billion in 2023[57]. - The company's total revenue for 2024 was RMB 87.13 billion, a decrease of 6.32% compared to RMB 93.01 billion in 2023[92]. Dividends and Shareholder Returns - The proposed final dividend for 2024 is RMB 0.02 per share (including tax), pending approval at the annual general meeting[5]. - The company will distribute the final dividend to H shareholders in Hong Kong dollars, calculated based on the average closing exchange rate prior to the dividend declaration date[6]. Audit and Compliance - The company has received standard unqualified audit reports from KPMG for financial statements prepared under both Chinese and International accounting standards[7]. - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[8]. - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute substantive commitments to investors[8]. - The annual report is prepared in both Chinese and English, with the Chinese version prevailing in case of discrepancies[10]. Risk Management - The company has detailed potential risks in its report, which investors are advised to review[9]. - The company is subject to risks associated with currency fluctuations, particularly the depreciation of the RMB against foreign currencies, which could increase costs and impact profitability[137]. - The company faces risks related to environmental regulations that may lead to additional expenditures if stricter standards are implemented[136]. - The company's revenue is significantly affected by the cyclical nature of the oil and petrochemical markets, which are sensitive to macroeconomic conditions and consumer demand[133]. Operational Highlights - The company processed a total of 13.35 million tons of crude oil in 2024, a decrease of 5.48% year-on-year[42]. - The average processing cost of crude oil was RMB 4,282.18 per ton, a reduction of RMB 76.25 per ton, or 1.75% compared to the previous year[44]. - The company achieved a product sales rate of 99.89% and a cash collection rate of 100%[42]. - The company reported a total non-recurring loss of RMB 21.50 million in 2024, an improvement from a loss of RMB 40.36 million in 2023[37]. Cash Flow and Financial Position - The net cash flow from operating activities increased dramatically to RMB 7,740,447 thousand, up 859.17% from RMB 806,996 thousand in 2023[25]. - The total assets at the end of 2024 were RMB 41,769,339 thousand, reflecting a 5.32% increase from RMB 39,658,244 thousand in 2023[25]. - The company's total liabilities at the end of 2024 were RMB 16,554.84 million, an increase from RMB 14,635.34 million in 2023[29]. - The debt-to-asset ratio as of December 31, 2024, was 39.71%, up from 36.99% in 2023[80]. - The company's cash flow from operating activities showed a substantial increase, reaching RMB 7.74 billion, compared to RMB 806.996 million in the previous year, marking an increase of 859.17%[92]. Research and Development - The research and development expenses for 2024 were RMB 174 million, a decrease from RMB 187 million in 2023[81]. - The company employed 153 R&D personnel, representing 2.17% of the total workforce, with a significant portion holding advanced degrees[102]. - The company's research and development expenses totaled RMB 173,953, accounting for 0.20% of total revenue[102]. Environmental and Safety Initiatives - The company has implemented strict safety production measures, resulting in a 9.90% decrease in average VOCs concentration to 65.14 micrograms per cubic meter[45]. - The company is committed to energy-saving and carbon reduction initiatives, aligning with national policies aimed at improving energy efficiency and reducing emissions[143]. - The company emphasizes the importance of safety and environmental responsibility in its operations[128]. Future Outlook and Strategy - The company plans to process a total of 13.1 million tons of crude oil and produce 8.39 million tons of refined oil in 2025[128]. - The company aims to produce 622,200 tons of ethylene and 688,000 tons of paraxylene in 2025[128]. - The company is committed to transitioning from refining to chemicals, from chemicals to materials, and from materials to high-end products[130]. - The company aims to enhance its competitive capabilities by leveraging its diverse product chain and proximity to the market[127]. Related Party Transactions - The company confirmed that all related party transactions were conducted at market prices and did not significantly affect its independence[185]. - The independent non-executive directors reviewed the related party transactions and confirmed their compliance with the company's pricing policies[185]. - Related party transactions with Sinopec Group and its subsidiaries were disclosed in accordance with Hong Kong Listing Rules, with transaction percentages exceeding 0.1% but below 5%[189].