Financial Performance - The net loss attributable to shareholders for 2022 was RMB 2,872,072 thousand according to Chinese accounting standards, and RMB 2,846,156 thousand according to International Financial Reporting Standards, with no dividends proposed for the year[5]. - The company's net sales for 2022 were RMB 72,654.6 million, a decrease of 4.3% from RMB 75,888.8 million in 2021[10]. - The company reported a pre-tax loss of RMB 3,573.7 million for 2022, compared to a profit of RMB 2,721.1 million in 2021, marking a significant decline[10]. - The net loss attributable to shareholders for 2022 was RMB 2,846.2 million, a sharp decrease from a profit of RMB 2,073.4 million in 2021, representing a 237.5% decline[10]. - The company's total assets decreased to RMB 41,136.7 million in 2022 from RMB 46,920.6 million in 2021, reflecting a decline of 12.0%[10]. - The net asset attributable to shareholders at the end of 2022 was RMB 26,227.7 million, down 13.3% from RMB 30,242.1 million in 2021[10]. - The operating income for 2022 was RMB 82,518.3 million, a decrease of 7.7% compared to RMB 89,280.4 million in 2021[13]. - The net cash flow from operating activities for 2022 was a negative RMB 7,337.5 million, compared to a positive RMB 4,060.0 million in 2021[13]. - The company reported a diluted loss per share of RMB (0.265) for 2022, compared to earnings of RMB 0.185 per share in 2021[14]. - The company experienced a significant increase in the asset-liability ratio to 36.06% in 2022 from 35.38% in 2021, indicating a slight increase in financial leverage[14]. Market Position and Operations - The company is a major integrated petrochemical enterprise in China, focusing on refining and producing various petroleum products, with a significant portion of sales coming from the East China region[9]. - The company has a strong market position in the production of refined oil, intermediate petrochemical products, synthetic resins, and synthetic fibers, benefiting from the growing demand for petrochemical products in China[9]. - The company has independent public utilities and environmental protection systems, along with comprehensive transportation facilities including maritime, inland river, railway, and road transport[9]. - The company produced over 60 different products, including various specifications of synthetic fibers, resins, plastics, and petrochemical products[19]. - The company's main products accounted for a total of 100% of the net sales in 2022, with petroleum products making up 57.04%[23]. - Gasoline sales contributed 23.50% and diesel sales contributed 20.05% to the total revenue, highlighting the significance of transportation fuels[23]. - The company is involved in various businesses including oil and gas exploration, refining, and petrochemical production[31]. - The company is located in the economically active Yangtze River Delta region, which enhances its competitive advantage in logistics and transportation[46]. Challenges and Risks - The company faced unprecedented challenges in 2022 due to global economic downturns and geopolitical tensions affecting oil and gas prices[48]. - The company anticipates that international oil and gas prices will remain at a medium to high level throughout the year due to geopolitical risks and OPEC production controls[130]. - The company faces four major challenges in 2023: oil price volatility, market uncertainty, rising investment costs, and external risk accumulation[131]. - The company faces risks related to the cyclical nature of the oil and petrochemical markets, with significant sensitivity to macroeconomic conditions and fluctuations in crude oil and petrochemical product prices[139]. - Over 95% of the crude oil required for production is imported, exposing the company to procurement risks and the inability to fully pass on increased costs due to rising oil prices[140]. - The company is subject to numerous environmental regulations, and potential future stricter standards could lead to additional costs[142]. - The company’s operations may be adversely affected by fluctuations in the RMB exchange rate against foreign currencies, impacting costs and profitability[143]. Research and Development - The company is engaged in research and development of alternative energy products and technology services[32]. - The company applied for 120 patents and was granted 59, achieving significant breakthroughs in technology innovation, including the development of carbon fiber and composite materials for various applications[52]. - Research and development expenses for 2022 amounted to RMB 130.5 million, an increase from RMB 94.3 million in 2021, primarily due to higher material costs for equipment and product technology development[92]. - The company focuses on R&D innovation, particularly in the production processes of ethylene and propylene, which are key raw materials for various products[155]. Environmental and Safety Initiatives - The company achieved a 57.64% year-on-year reduction in ammonia nitrogen emissions, a 23.90% reduction in sulfur dioxide emissions, and a 10.56% reduction in nitrogen oxides emissions[195]. - The company maintained a 100% compliance rate for wastewater discharge and a 99.99% compliance rate for controlled waste gas emissions in 2022[195]. - The company conducted 2,902,476 leak detection tests on production equipment, identifying 8,374 leaks and successfully repairing 8,245 of them, resulting in a repair rate of 98.50%[195]. - The company received the "2022 Green Enterprise" award and continued to hold the title of "Chinese Environmentally Friendly Enterprise" after passing the review[195]. - The company has implemented a dual prevention mechanism to mitigate major safety and environmental risks, enhancing its HSE performance[195]. - The company has obtained environmental impact assessments for seven projects, including the thermoplastic elastomer project in 2022[198]. Shareholder and Corporate Governance - The controlling shareholder of the company is China Petroleum & Chemical Corporation, holding 67.20% of the shares[33]. - The company has no non-operational fund occupation by controlling shareholders and their related parties[6]. - The company has not violated regulatory decision-making procedures in providing guarantees[6]. - The board of directors has detailed the potential risks that may affect the company's future development in the management discussion and analysis section of the report[6]. - The company has appointed KPMG Huazhen LLP as the domestic auditor and KPMG as the overseas auditor for the fiscal year 2022, with a total remuneration of RMB 6,837,000[178]. - The company has not issued any stock options under the equity incentive plan during the reporting period, and no options were exercised or canceled[182]. Future Plans and Goals - The company aims to continuously improve operational efficiency and strives to become a "domestically leading, world-class" energy, chemical, and new materials company[9]. - The company aims to enhance its competitiveness by focusing on low-cost upstream operations and high-value downstream products, while promoting technological upgrades and ecological transformation[132]. - The company plans to process a total of 13.6 million tons of crude oil in 2023, with expected production of 8.001 million tons of refined oil, 756,000 tons of ethylene, and 680,000 tons of paraxylene[133]. - The company plans to achieve commercial operation of the 48K large bundle project in the current year and initiate the construction of the second phase, along with establishing a 100-ton high-performance carbon fiber testing facility[137]. - The company anticipates capital expenditures of approximately RMB 3.7 billion for 2023, which will be financed through a combination of financing activities and internal funds[141].
上海石油化工股份(00338) - 2022 - 年度财报