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SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2017
Commission File Number: 1-12158
Sinopec Shanghai Petrochemical Company Limited
(Translation of registrant’s name into English)
No. 48 Jinyi Road, Jinshan District, Shanghai, 200540
The People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED | ||||||
| Date: October 27, 2017 | By: | /s/ Wang Zhiqing | ||||
| Name: | Wang Zhiqing | |||||
| Title: | President | |||||
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(A joint stock limited company incorporated in the People’s Republic of China)
Election of Employee Representative Supervisor
Reference is made to the announcement of Sinopec Shanghai Petrochemical Company Limited (the “Company”) dated 11 July 2017 in relation to the resignation of chairman of the supervisory committee of the Company. On 11 July 2017, Mr. Zhang Jianbo, former employee representative supervisor and chairman of the supervisory committee of the Company, requested to resign from his position as a supervisor and chairman of the supervisory committee due to a change of job assignments. According to the articles of association of the Company (the “Articles of Association”), the resignation took effect upon the submission of the resignation letter to the supervisory committee of the Company.
In accordance with the Company Law of the People’s Republic of China and the Articles of Association, on 20 October 2017, the staff association of the Company through democratic election procedure elected Mr. Ma Yanhui (“Mr. Ma”) as employee representative supervisor of the Company, for a period which is the same as the current session of the supervisory committee. The remuneration of the newly appointed supervisor will be determined pursuant to the measures for the payment of remuneration for Directors, Supervisors and Senior Management of the Company.
The biography of Mr. Ma is set out below:
Ma Yanhui, aged 46, is currently Deputy Secretary of the Communist Party Committee, Secretary of the Communist Party Discipline Supervisory Committee and Chairman of the Labour Union of the Company. Mr. Ma started his career in 1996. He served as Secretary of Office of Yanhua Refinery, Secretary and Deputy Director of Yanhua Office of Great Wall Lubricant Oil, Supervisor and Acting Director of Integrated Corporate Reform Department of China Petrochemical Corporation, etc. Mr. Ma was Deputy Director of Integrated Corporate Reform Department of China Petrochemical Corporation from July 2004 to March 2006, and he was Deputy Director of Structure Reform Sector, Corporate Reform Department of Sinopec Assets Management Co., Ltd. from March 2006 to October 2006. He was Director of Structure Reform Sector, Corporate Reform Department of Sinopec Assets Management Co., Ltd. from October 2006 to June 2008. From June 2008 to August 2017, Mr. Ma was Director of Integrated Corporate Reform Department of China Petrochemical Corporation. In August 2017, Mr. Ma was appointed as Deputy Secretary of the Communist Party Committee and Secretary of the Communist Party Discipline Supervisory Committee of the Company. He was appointed as Chairman of the Labour Union of the Company in October 2017. Mr. Ma graduated from East China University of Science and Technology in July 1996, majoring in petroleum processing, and obtained a bachelor’s degree in engineering. In June 2006, he obtained a master’s degree in corporate management from Renmin University of China. Mr. Ma is a senior economist by professional title.
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Save as disclosed above, Mr. Ma (i) does not and did not hold any directorships in the last three years in other public companies the securities of which are listed on any securities market in Hong Kong or overseas; (ii) does not have relationships with any director, supervisor, senior management, controlling shareholder, substantial shareholder or de facto controller of the Company and (iii) does not have any interest in the shares or underlying shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance. Mr. Ma has not faced any disciplinary action by the China Securities Regulatory Commission or other relevant authorities, nor has been sanctioned by any stock exchange.
Save as disclosed above, the Company is not aware of any information in respect of Mr. Ma that needs to be disclosed pursuant to Rule 13.51(2)(h) to Rule 13.51(2)(v) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, nor was the Company aware of any matters that need to be brought to the attention of the shareholders of the Company.
| By Order of the Board Sinopec Shanghai Petrochemical Company Limited Guo Xiaojun Joint Company Secretary |
Shanghai, the PRC, 23 October 2017
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(A joint stock limited company incorporated in the People’s Republic of China)
Election of Chairman of the Supervisory Committee
The board of directors (the “Board”) of Sinopec Shanghai Petrochemical Company Limited (the “Company”) is pleased to announce that the third meeting of the Ninth Session of the Supervisory Committee of the Company (the “Supervisory Committee”) was held on 25 October 2017. At the meeting, the Supervisory Committee has considered and approved the election of Mr. Ma Yanhui as the Chairman of the Supervisory Committee.
| By Order of the Board Sinopec Shanghai Petrochemical Company Limited Guo Xiaojun Joint Company Secretary |
Shanghai, the PRC, 26 October 2017
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(A joint stock limited company incorporated in the People’s Republic of China)
CHANGE OF JOINT COMPANY SECRETARY
The board of directors (the “Board”) of Sinopec Shanghai Petrochemical Company Limited (the “Company”) hereby announces that Ms. Ng Sin Yee, Clare (“Ms. Ng”) has tendered her resignation as joint company secretary of the Company with effect from 26 October 2017. Ms. Ng has confirmed that she has no disagreement with the Board and there are no matters relating to her resignation that need to be brought to the attention of the shareholders of the Company.
The Board would like to take this opportunity to express its gratitude to Ms. Ng for her valuable contribution to the Company during her tenure of service.
The Board further announces that Ms. Siy Ling Lung (“Ms. Siy”) has been appointed as the joint company secretary of the Company in replacement of Ms. Ng with effect from 26 October 2017. Mr. Guo Xiaojun (“Mr. Guo”) will continue to act as the other joint company secretary of the Company.
The biography of Ms. Siy is set out below:
Ms. Siy is currently a senior manager of the Corporate Services Division of Tricor Services Limited, a global professional services provider specialising in integrated business, corporate and investor services. Ms. Siy has over 20 years of experience in the corporate secretarial field and has been providing professional corporate services to Hong Kong listed companies as well as multi-national, private and offshore companies. Ms. Siy is an Associate of both The Hong Kong Institute of Chartered Secretaries and The Institute of Chartered Secretaries and Administrators in the United Kingdom.
WAIVER FROM STRICT COMPLIANCE WITH RULES 3.28 AND 8.17 OF THE LISTING RULES
Pursuant to Rule 8.17 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) (the “Listing Rules”), a listed issuer must appoint a company secretary who meets the requirements under Rule 3.28 of the Listing Rules. Rule 3.28 of the Listing Rules provides that a listed issuer must appoint as its company secretary an individual who, in the opinion of the Stock Exchange, is capable of discharging the functions of company secretary of the listed issuer by virtue of his/her academic or professional qualifications or relevant experience.
Reference is made to the waiver granted to the Company by the Stock Exchange from strict compliance with the requirements of Rules 3.28 and 8.17 of the Listing Rules in connection with the appointment of Mr. Guo as the joint company secretary of the Company for a period of three years from the date of his appointment i.e. 15 June 2017, on the condition that Ms. Ng was appointed as a joint company secretary of the Company to assist Mr. Guo in discharging his duties as a company secretary and in gaining the relevant experience as required under Note 2 to Rule 3.28 of the Listing Rules (the “Waiver”). The Waiver was revoked upon Ms. Ng’s resignation on 26 October 2017.
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The Company has made fresh application with the Stock Exchange for, and the Stock Exchange has granted the Company, a new waiver (the “New Waiver”) from strict compliance with the requirements of Rules 3.28 and 8.17 of the Listing Rules for a period from the date of appointment of Ms. Siy as the other joint company secretary of the Company to 14 June 2020 (i.e. the remaining period of three years for the Waiver) (the “New Waiver Period”) in relation to Mr. Guo’s eligibility to act as the joint company secretary of the Company. The New Waiver was granted on the conditions that (i) Mr. Guo will be assisted by Ms. Siy, the other joint company secretary of the Company, during the New Waiver Period and the New Waiver will be revoked immediately if and when Ms. Siy ceases to provide assistance to Mr. Guo; (ii) the Company shall notify the Stock Exchange at the end of the New Waiver Period for the Stock Exchange to re-visit the situation. The Stock Exchange expects that, after the end of the New Waiver Period, the Company will be able to demonstrate that Mr. Guo can satisfy the requirements under Rules 3.28 and 8.17 of the Listing Rules after having the benefit of Ms. Siy’s assistance such that a further waiver will not be necessary; and (iii) the Company discloses the details of the New Waiver, including its reasons and conditions.
The Board would like to welcome Ms. Siy on her new appointment.
| By Order of the Board Sinopec Shanghai Petrochemical Company Limited Wang Zhiqing Chairman |
Shanghai, the PRC, 26 October 2017
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(A joint stock limited company incorporated in the People’s Republic of China)
(Stock Code: 00338)
2017 Third Quarterly Report
1. Important Message
1.1 The Board of Directors (the “Board”) and the Supervisory Committee of Sinopec Shanghai Petrochemical Company Limited (the “Company” or “SPC”) as well as its directors, supervisors and senior management warrant the truthfulness, accuracy and completeness of the information contained in the 2017 third quarterly report, and warrant that there are no false representations or misleading statements contained in or material omissions from this report and severally and jointly accept responsibility pursuant to such information.
1.2 All directors attended the fourth meeting of the ninth session of the Board, and have considered and adopted the 2017 third quarterly report at the meeting.
1.3 Mr. Wang Zhiqing, Chairman and President of the Company, Mr. Zhou Meiyun, Vice President and Chief Financial Officer overseeing the accounting operations, and Mr. Zhang Feng, person-in-charge of Accounting Department (Accounting Chief) and Deputy Finance Manager warrant the truthfulness, accuracy and completeness of the financial report contained in this third quarterly report.
1.4 The financial report of the Company’s 2017 third quarterly report was prepared under the China Accounting Standards for Business Enterprises and was unaudited.
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2. Key Financial Data & Change in Shareholdings
2.1 Major Accounting Data
| As at the end of the Reporting Period |
As at the end of the previous year |
Increase/decrease at the end of the Reporting Period as compared to the end of the previous year (%) |
||||||||||
| Total assets (RMB’000) |
36,451,401 | 34,123,693 | 6.82 | |||||||||
| Total equity attributable to equity shareholders of the Company (RMB’000) |
26,240,392 | 24,750,048 | 6.02 | |||||||||
| From the beginning of the year to the end of the Reporting Period (January to September) |
From the beginning of the year to the end of the Reporting Period last year (January to September) |
Increase/decrease as compared to the corresponding period of the previous year (%) (January to September) |
||||||||||
| Net cash flows generated from operating activities (RMB’000) |
5,068,803 | 5,301,471 | -4.39 | |||||||||
| From the beginning of the year to the end of the Reporting Period (January to September) |
From the beginning of the year to the end of the Reporting Period last year (January to September) |
Increase/decrease as compared to the corresponding period of the previous year (%)(January to September) |
||||||||||
| Revenue (RMB’000) |
68,157,618 | 54,584,662 | 24.87 | |||||||||
| Net profit attributable to equity shareholders of the Company (RMB’000) |
4,101,491 | 4,130,061 | -0.69 | |||||||||
| Net profit attributable to equity shareholders of the Company excluding non-recurring items (RMB’000) |
4,124,954 | 4,089,900 | 0.86 | |||||||||
| Return on net assets (weighted average) (%) |
14.654 | 18.832 | |
Decreased by 4.178 percentage points |
| |||||||
| Basic earnings per share (RMB/share) |
0.381 | 0.382 | -0.26 | |||||||||
| Diluted earnings per share (RMB/share) |
0.380 | 0.382 | -0.52 | |||||||||
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Excluded non-recurring items and amount:
Unit: RMB’000
| Item |
Amount for the Reporting Period (July to September) |
Amount for the period from the beginning of the year to the end of the Reporting Period (January to September) |
||||||
| Net losses on disposal of non-current assets |
-1,809 | -6,939 | ||||||
| Income from handling subsidiaries and other business units |
10,438 | 10,438 | ||||||
| Government grants recognised through profit and loss except for government grants under the State’s unified standards on quota and amount entitlements and closely related to corporate business |
-23,048 | 7,500 | ||||||
| Income from external entrusted loans |
325 | 1,019 | ||||||
| Other non-operating income and expenses other than those mentioned above |
-24,159 | -34,989 | ||||||
| Employee reduction expenses |
-5,046 | -11,330 | ||||||
| Effect on minority interests (after tax) |
107 | -934 | ||||||
| Tax effect for the items above |
13,311 | 11,772 | ||||||
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| Total |
-29,881 | -23,463 | ||||||
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2.2 Total Number of Shareholders as at the End of the Reporting Period, Top Ten Shareholders and Shareholdings of the Top Ten Shareholders of Shares in Circulation (or Unrestricted Shares)
Unit: Share
| Total number of shareholders |
|
112,190 | ||||||||||||||||||||||
| Shareholdings of the top ten shareholders
|
| |||||||||||||||||||||||
| Name of shareholder (in full) |
Number of shares held at the end of the Reporting Period |
Percentage of total shareholding (%) |
Number of shares with selling restrictions |
Number of shares pledged or frozen |
Type of shareholder |
|||||||||||||||||||
| Situation of the shares |
Number | |||||||||||||||||||||||
| China Petroleum & Chemical Corporation |
5,460,000,000 | 50.49 | 0 | Nil | — | |
State- owned enterprise |
| ||||||||||||||||
| HKSCC (Nominees) Limited |
3,456,056,321 | 31.96 | 0 | Unknown | — | |
Foreign legal person |
| ||||||||||||||||
| China Securities Finance Corporation Limited |
506,813,547 | 4.69 | 0 | Nil | — | Others | ||||||||||||||||||
| Central Huijin Investment Ltd. |
67,655,800 | 0.63 | 0 | Nil | — | Others | ||||||||||||||||||
| Shanghai Kangli Gong Mao Company |
22,375,300 | 0.21 | 0 | Nil | — | Others | ||||||||||||||||||
| Bank of China Limited—ChinaAMC new economy flexible configured hybrid securities investment fund |
19,645,656 | 0.18 | 0 | Nil | — | Others | ||||||||||||||||||
| Abu Dhabi Investment Authority |
18,172,619 | 0.17 | 0 | Nil | — | Others | ||||||||||||||||||
| Wang Jingqing |
17,000,000 | 0.16 | 0 | Nil | — | Others | ||||||||||||||||||
| Beijing Fengshan Investment Ltd |
10,994,720 | 0.10 | 0 | Nil | — | Others | ||||||||||||||||||
| NSSF One Hundred Ten Combination |
10,177,475 | 0.09 | 0 | Nil | — | Others | ||||||||||||||||||
| Explanation of the connected relationship or acting in concert relationship of the above shareholders |
|
Among the above-mentioned shareholders, China Petroleum & Chemical Corporation (“Sinopec Corp.”), a state-owned enterprise legal person, does not have any connected relationship with the other shareholders, and is not an act-in-concert party of the other shareholders under the “Administration Measures on Acquisition of Listed Companies”. Among the above-mentioned shareholders, HKSCC (Nominees) Limited is a nominee shareholder. Apart from the above, the Company is not aware of any other connected relationships among the other shareholders, or any act-in-concert parties under the “Administration Measures on the Acquisition of Listed Companies”. |
| |||||||||||||||||||||
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3. Major Events
3.1 Description of Substantial Changes in Major Financial Report Items and Financial Indicators of the Company
Unit: RMB’000
| Item |
As at 30 September 2017 |
As at 31 December 2016 |
Increase/ decrease amount |
Change (%) |
Major reason for change | |||||||||||||
| Cash at bank and on hand |
7,792,930 | 5,440,623 | 2,352,307 | 43.24 | Increase in profit and cash generated from operating activities in the Reporting Period | |||||||||||||
| Advances to suppliers |
71,773 | 29,340 | 42,433 | 59.12 | Increase in advances to suppliers | |||||||||||||
| Interest receivable |
46,761 | 11,596 | 35,164 | 303.24 | Bank saving and interest receivable increase | |||||||||||||
| Construction in progress |
1,041,791 | 717,672 | 324,119 | 31.11 | Increase in chemical operation projects which are under construction | |||||||||||||
| Notes payable |
45,000 | 5,000 | 40,000 | 800.00 | Increase in unpaid bank bills in the Reporting Period | |||||||||||||
| Staff salaries payable |
243,311 | 37,634 | 205,677 | 546.52 | Increase in the provisions for non-released performance evaluation award | |||||||||||||
| Other payables |
992,557 | 614,668 | 377,889 | 61.48 | Increase in payable projects in the Reporting Period | |||||||||||||
| Advances from customers |
785,193 | 476,806 | 308,387 | 64.68 | Increase in advances from customers | |||||||||||||
| Specific reserve |
25,251 | 346 | 24,905 | 7,204.87 | Increase in the unfinished safety charge | |||||||||||||
| Unit: RMB’000 | ||||||||||||||||||
| Item |
For the three-month period ended 30 September |
Increase/ decrease |
Change | |||||||||||||||
| 2017 | 2016 | amount | (%) | Major reason for change | ||||||||||||||
| Revenue |
68,157,618 | 54,584,662 | 13,572,956 | 24.87 | Increase in unit price of products | |||||||||||||
| Cost of sales |
51,614,139 | 38,530,849 | 13,083,291 | 33.96 | Increase in the cost of crude oil, leading to higher cost of raw materials | |||||||||||||
| Taxes and surcharges |
9,576,364 | 8,551,331 | 1,025,033 | 11.99 | Increase in consumer tax | |||||||||||||
| Financial expenses – net value |
-137,971 | 3,904 | -141,875 | -3,634.31 | Increase in deposits hence increase in interest income | |||||||||||||
| Investment income |
848,278 | 623,056 | 225,222 | 36.15 | Good performance of Associates in the Reporting Period led to increase in investment income | |||||||||||||
| Asset impairment losses |
86,372 | 259,370 | -172,998 | -66.70 | Decline in inventory price and prepared provisions in the Reporting Period | |||||||||||||
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3.2 Others
The first exercisable period of share options initially granted under the A Shares Share Option Incentive Scheme of the Company fulfilled the exercise conditions, while grantees exercised the share options according to the relevant regulations. According to the confirmation on registration of change in securities issued by China Securities Depository and Clearing (Shanghai) Corporation Limited (“CSDC”), on 27th September 2017, the total number of share options exercised was 14,176,600, representing 0.13% of the Company’s total share capital before the exercise. After the exercise of share options, the number of shares of the Company increased from 10,800,000,000 to 10,814,176,600.
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4. Appendix
4.1 CONSOLIDATED BALANCE SHEETS
AS AT 30 SEPTEMBER 2017
Unit: RMB’000
| Items |
As at the end of the |
As at the beginning |
||||||
| (unaudited) | (audited) | |||||||
| Current assets |
||||||||
| Cash at bank and on hand |
7,792,930 | 5,440,623 | ||||||
| Notes receivable |
1,636,945 | 1,267,920 | ||||||
| Accounts receivable |
2,044,226 | 1,656,580 | ||||||
| Advances to suppliers |
71,773 | 29,340 | ||||||
| Interests receivable |
46,761 | 11,596 | ||||||
| Other receivables |
45,565 | 56,545 | ||||||
| Inventories |
5,561,156 | 6,159,473 | ||||||
| Other current assets |
287,651 | 253,804 | ||||||
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| Total current assets | 17,487,007 | 14,875,881 | ||||||
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| Non-current assets | ||||||||
| Long-term equity investments |
4,196,450 | 3,838,794 | ||||||
| Investment properties |
387,019 | 380,429 | ||||||
| Fixed assets |
12,539,496 | 13,502,370 | ||||||
| Construction in progress |
1,041,790 | 717,672 | ||||||
| Intangible assets |
402,096 | 406,116 | ||||||
| Long-term prepaid expenses |
297,130 | 299,340 | ||||||
| Deferred tax assets |
100,413 | 103,091 | ||||||
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| Total non-current assets | 18,964,394 | 19,247,812 | ||||||
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| Total assets | 36,451,401 | 34,123,693 | ||||||
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CONSOLIDATED BALANCE SHEETS (CONTINUED)
AS AT 30 SEPTEMBER 2017
Unit: RMB’000
| Items |
As at the end of the Period |
As at the beginning of the year |
||||||
| (unaudited) | (audited) | |||||||
| Current liabilities | ||||||||
| Short-term borrowings |
598,657 | 546,432 | ||||||
| Notes payable |
45,000 | 5,000 | ||||||
| Accounts payable |
4,338,751 | 5,082,470 | ||||||
| Advances from customers |
785,193 | 476,806 | ||||||
| Employee benefits payable |
243,311 | 37,634 | ||||||
| Taxes payable |
2,732,439 | 2,158,427 | ||||||
| Interest payable |
811 | 465 | ||||||
| Dividends payable |
23,860 | 20,473 | ||||||
| Other payables |
992,557 | 614,668 | ||||||
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| Total current liabilities | 9,760,579 | 8,942,375 | ||||||
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| Non-current liabilities | ||||||||
| Deferred revenue |
166,556 | 150,000 | ||||||
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| Total non-current liabilities | 166,556 | 150,000 | ||||||
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| Total liabilities | 9,927,135 | 9,092,375 | ||||||
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| Shareholders’ equity | ||||||||
| Share capital |
10,814,177 | 10,800,000 | ||||||
| Capital surplus |
584,951 | 534,628 | ||||||
| Less: Treasury shares |
— | — | ||||||
| Other comprehensive income |
17,661 | 18,213 | ||||||
| Specific reserve |
25,251 | 346 | ||||||
| Surplus reserve |
5,100,401 | 5,100,401 | ||||||
| Undistributed profits |
9,697,951 | 8,296,460 | ||||||
| Total equity attributable to equity shareholders of the Company | 26,240,392 | 24,750,048 | ||||||
| Minority interests |
283,874 | 281,270 | ||||||
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| Total shareholders’ equity | 26,524,266 | 25,031,318 | ||||||
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| Total liabilities and shareholders’ equity |
36,451,401 | 34,123,693 | ||||||
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COMPANY BALANCE SHEETS
AS AT 30 SEPTEMBER 2017
Unit: RMB’000
| Items |
As at the end of the Period |
As at the beginning of the year |
||||||
| (unaudited) | (audited) | |||||||
| Current assets | ||||||||
| Cash at bank and on hand |
6,601,258 | 4,421,143 | ||||||
| Notes receivable |
1,405,593 | 1,097,011 | ||||||
| Accounts receivable |
1,170,953 | 1,211,039 | ||||||
| Advances to suppliers |
53,986 | 21,409 | ||||||
| Dividends receivable |
41,645 | 11,553 | ||||||
| Other receivables |
47,182 | 36,345 | ||||||
| Inventories |
5,297,195 | 5,374,425 | ||||||
| Other current assets |
235,651 | 157,771 | ||||||
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| Total current assets | 14,853,463 | 12,330,696 | ||||||
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| Non-current assets | ||||||||
| Long-term equity investments |
5,334,303 | 4,972,861 | ||||||
| Investment properties |
384,386 | 413,943 | ||||||
| Fixed assets |
12,324,393 | 13,219,994 | ||||||
| Construction in progress |
1,040,510 | 717,294 | ||||||
| Intangible assets |
335,678 | 335,877 | ||||||
| Long-term prepaid expenses |
285,933 | 287,578 | ||||||
| Deferred tax assets |
94,501 | 99,057 | ||||||
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| Total non-current assets | 19,799,704 | 20,046,604 | ||||||
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| Total assets | 34,653,167 | 32,377,300 | ||||||
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COMPANY BALANCE SHEETS (CONTINUED)
AS AT 30 SEPTEMBER 2017
Unit: RMB’000
| Items |
As at the end of the |
As at the beginning |
||||||
| (unaudited) | (audited) | |||||||
| Current liabilities |
||||||||
| Short-term borrowings |
578,000 | 632,000 | ||||||
| Notes payable |
45,000 | — | ||||||
| Accounts payable |
3,128,973 | 3,729,702 | ||||||
| Advance from customers |
711,404 | 447,647 | ||||||
| Employee benefits payable |
230,986 | 30,989 | ||||||
| Taxes payable |
2,711,101 | 2,106,163 | ||||||
| Interest payable |
406 | 470 | ||||||
| Dividends payable |
23,860 | 20,473 | ||||||
| Other payables |
938,039 | 608,660 | ||||||
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| Total current liabilities |
8,367,769 | 7,576,104 | ||||||
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| Non-current liabilities |
||||||||
| Deferred revenue |
165,883 | 150,000 | ||||||
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|
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| Total non-current liabilities |
165,883 | 150,000 | ||||||
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| Total liabilities |
8,533,652 | 7,726,104 | ||||||
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| Shareholders’ equity |
||||||||
| Share capital |
10,814,177 | 10,800,000 | ||||||
| Capital surplus |
584,951 | 534,628 | ||||||
| Less: Treasury shares |
— | — | ||||||
| Other comprehensive income |
17,661 | 18,213 | ||||||
| Specific reserve |
23,349 | — | ||||||
| Surplus reserve |
5,100,401 | 5,100,401 | ||||||
| Undistributed profits |
9,578,976 | 8,197,954 | ||||||
|
|
|
|
|
|||||
| Total shareholders’ equity |
26,119,515 | 24,651,196 | ||||||
|
|
|
|
|
|||||
| Total liabilities and shareholders’ equity |
34,653,167 | 32,377,300 | ||||||
|
|
|
|
|
|||||
10
Table of Contents
| 4.2 | CONSOLIDATED INCOME STATEMENTS |
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2017 (Unaudited)
Unit: RMB’000
| Nine months ended 30 September | ||||||||
| Items |
2017 | 2016 | ||||||
| Total revenue |
68,157,618 | 54,584,662 | ||||||
| Less: Cost of sales |
51,614,139 | 38,530,849 | ||||||
| Taxes and surcharges |
9,576,364 | 8,551,331 | ||||||
| Selling and distribution expenses |
347,316 | 354,298 | ||||||
| General and administrative expenses |
2,309,150 | 2,198,849 | ||||||
| Financial expenses (“-” to indicate income) |
-137,971 | 3,904 | ||||||
| Asset impairment losses |
86,372 | 259,370 | ||||||
| Add: Investment income |
848,278 | 623,056 | ||||||
| Including: Share of income of associates and joint ventures |
837,840 | 623,056 | ||||||
| Add: Other income |
25,705 | — | ||||||
| Operating profit |
5,236,231 | 5,309,117 | ||||||
| Add: Non-operating income |
14,620 | 125,368 | ||||||
| Including: gains on disposal of non-current assets |
3,740 | 3,022 | ||||||
| Less: Non-operating expenses |
49,048 | 72,429 | ||||||
| Including: losses on disposal of non-current assets |
10,679 | 34,216 | ||||||
|
|
|
|
|
|||||
| Total profit |
5,201,803 | 5,362,056 | ||||||
|
|
|
|
|
|||||
| Less: Income tax expenses |
1,090,809 | 1,225,758 | ||||||
|
|
|
|
|
|||||
| Net Profit |
4,110,994 | 4,136,298 | ||||||
|
|
|
|
|
|||||
| Attributable to equity shareholders of the Company |
4,101,491 | 4,130,061 | ||||||
| Minority interests |
9,503 | 6,237 | ||||||
| Other comprehensive income, net of tax |
-552 | — | ||||||
|
|
|
|
|
|||||
| Total comprehensive income |
4,110,442 | 4,136,298 | ||||||
|
|
|
|
|
|||||
| Attributable to equity shareholders of the Company |
4,100,939 | 4,130,061 | ||||||
| Minority interests |
9,503 | 6,237 | ||||||
| Earnings per share |
||||||||
| Basic earnings per share (RMB) |
0.381 | 0.382 | ||||||
| Diluted earnings per share (RMB) |
0.380 | 0.382 | ||||||
11
Table of Contents
COMPANY INCOME STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2017 (Unaudited)
Unit: RMB’000
| Nine months ended 30 September | ||||||||
| Items |
2017 | 2016 | ||||||
| Revenue |
48,632,557 | 39,391,021 | ||||||
| Less: Cost of sales |
32,269,533 | 23,530,504 | ||||||
| Taxes and surcharges |
9,559,562 | 8,547,903 | ||||||
| Selling and distribution expenses |
274,010 | 277,634 | ||||||
| General and administrative expenses |
2,206,250 | 2,085,972 | ||||||
| Financial expenses - net |
-140,126 | 4,810 | ||||||
| Asset impairment losses |
100,412 | 219,306 | ||||||
| Add: Investment income |
810,124 | 687,625 | ||||||
| Including: Share of income of associates and joint ventures |
803,391 | 640,892 | ||||||
| Add: Other income |
22,444 | — | ||||||
| Operating profit |
5,195,484 | 5,412,517 | ||||||
| Add: Non-operating income |
12,589 | 122,267 | ||||||
| Including: gains on disposal of non-current assets |
3,057 | 2,230 | ||||||
| Less: Non-operating expenses |
48,694 | 71,883 | ||||||
| Including: losses on disposal of non-current assets |
10,520 | 33,814 | ||||||
|
|
|
|
|
|||||
| Total profit |
5,159,379 | 5,462,901 | ||||||
|
|
|
|
|
|||||
| Less: Income tax expenses |
1,078,357 | 1,210,841 | ||||||
|
|
|
|
|
|||||
| Net Profit |
4,081,022 | 4,252,060 | ||||||
|
|
|
|
|
|||||
| Other comprehensive income, net of tax |
-552 | — | ||||||
|
|
|
|
|
|||||
| Total comprehensive income |
4,080,470 | 4,252,060 | ||||||
|
|
|
|
|
|||||
12
Table of Contents
CONSOLIDATED INCOME STATEMENTS
FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2017 (Unaudited)
Unit: RMB’000
| Three months ended 30 September | ||||||||
| Items |
2017 | 2016 | ||||||
| Total revenue |
25,050,668 | 17,591,471 | ||||||
| Less: Cost of sales |
18,772,168 | 13,353,221 | ||||||
| Taxes and surcharges |
3,571,091 | 2,365,169 | ||||||
| Selling and distribution expenses |
124,542 | 118,626 | ||||||
| General and administrative expenses |
896,091 | 654,056 | ||||||
| Financial expenses (“-” to indicate income) |
-49,132 | 1,921 | ||||||
| Asset impairment losses |
50,230 | 109,366 | ||||||
| Add: Investment income |
288,210 | 246,311 | ||||||
| Including: Share of income of associates and joint ventures |
277,772 | 246,311 | ||||||
| Add: Other income |
25,705 | — | ||||||
| Operating profit |
1,999,593 | 1,235,423 | ||||||
| Add: Non-operating income |
-20,497 | 108,004 | ||||||
| Including: gains on disposal of non-current assets |
1,586 | 474 | ||||||
| Less: Non-operating expenses |
28,519 | 31,375 | ||||||
| Including: losses on disposal of non-current assets |
3,395 | 7,691 | ||||||
|
|
|
|
|
|||||
| Total profit |
1,950,577 | 1,312,052 | ||||||
|
|
|
|
|
|||||
| Less: Income tax expenses |
419,736 | 277,517 | ||||||
|
|
|
|
|
|||||
| Net Profit |
1,530,841 | 1,034,535 | ||||||
|
|
|
|
|
|||||
| Attributable to equity shareholders of the Company |
1,526,012 | 1,033,386 | ||||||
| Minority interests |
4,829 | 1,149 | ||||||
|
|
|
|
|
|||||
| Other comprehensive income, net of tax |
— | — | ||||||
|
|
|
|
|
|||||
| Total comprehensive income |
1,530,841 | 1,034,535 | ||||||
|
|
|
|
|
|||||
| Attributable to equity shareholders of the Company |
1,526,012 | 1,033,386 | ||||||
| Minority interests |
4,829 | 1,149 | ||||||
| Earnings per share |
||||||||
| Basic earnings per share (RMB) |
0.142 | 0.096 | ||||||
| Diluted earnings per share (RMB) |
0.142 | 0.096 | ||||||
13
Table of Contents
COMPANY INCOME STATEMENTS
FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2017 (Unaudited)
Unit: RMB’000
| Three months ended 30 September | ||||||||
| Items |
2017 | 2016 | ||||||
| Revenue |
18,094,113 | 12,195,462 | ||||||
| Less: Cost of sales |
11,881,961 | 8,013,676 | ||||||
| Taxes and surcharges |
3,563,923 | 2,364,869 | ||||||
| Selling and distribution expenses |
99,810 | 92,700 | ||||||
| General and administrative expenses |
861,309 | 617,630 | ||||||
| Financial expenses - net |
-48,104 | -549 | ||||||
| Asset impairment losses |
50,230 | 79,366 | ||||||
| Add: Investment income |
270,897 | 290,214 | ||||||
| Including: Share of income of associates and joint ventures |
264,164 | 243,481 | ||||||
| Add: Other income |
22,444 | — | ||||||
| Operating profit |
1,978,325 | 1,317,984 | ||||||
| Add: Non-operating income |
-17,747 | 106,274 | ||||||
| Including: gains on disposal of non-current assets |
1,277 | 336 | ||||||
| Less: Non-operating expenses |
28,679 | 30,956 | ||||||
| Including: losses on disposal of non-current assets |
3,384 | 7,416 | ||||||
|
|
|
|
|
|||||
| Total profit |
1,931,899 | 1,393,302 | ||||||
|
|
|
|
|
|||||
| Less: Income tax expenses |
414,722 | 275,351 | ||||||
|
|
|
|
|
|||||
| Net Profit |
1,517,177 | 1,117,951 | ||||||
|
|
|
|
|
|||||
| Other comprehensive income, net of tax |
— | — | ||||||
|
|
|
|
|
|||||
| Total comprehensive income |
1,517,177 | 1,117,951 | ||||||
|
|
|
|
|
|||||
14
Table of Contents
4.3 CONSOLIDATED CASH FLOW STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2017 (Unaudited)
Unit: RMB’000
| Nine months ended 30 September | ||||||||
| Items |
2017 | 2016 | ||||||
| 1. Cash flows from operating activities |
||||||||
| Cash received from sales of goods or rendering of services |
75,576,811 | 61,971,130 | ||||||
| Refund of taxes and surcharges |
71,688 | 128,052 | ||||||
| Cash received relating to other operating activities |
29,735 | 11,805 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash inflows |
75,678,234 | 62,110,987 | ||||||
|
|
|
|
|
|||||
| Cash paid for goods and services |
55,904,482 | 41,620,052 | ||||||
| Cash paid to and on behalf of employees |
1,691,162 | 1,744,058 | ||||||
| Payments of taxes and surcharges |
12,623,839 | 13,013,041 | ||||||
| Cash paid relating to other operating activities |
389,948 | 432,365 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash outflows |
70,609,431 | 56,809,516 | ||||||
|
|
|
|
|
|||||
| Net cash flows generated from operating activities |
5,068,803 | 5,301,471 | ||||||
|
|
|
|
|
|||||
| 2. Cash flows from investing activities |
||||||||
| Cash received from entrusted lending |
48,000 | 66,000 | ||||||
| Cash received from returns on investments |
479,632 | 557,312 | ||||||
| Net cash received from disposal of fixed assets |
1,848 | -4,679 | ||||||
| Cash received relating to other investing activities |
641,365 | 60,476 | ||||||
| 10,438 | — | |||||||
|
|
|
|
|
|||||
| Sub-total of cash inflows |
1,181,283 | 679,109 | ||||||
|
|
|
|
|
|||||
| Cash paid to acquire fixed assets, intangible assets and other long-term assets |
772,187 | 642,541 | ||||||
| Net cash paid for disposal of fixed assets, intangible assets and other long-term assets |
12,000 | 48,000 | ||||||
| Cash paid to entrusted lending |
1,500,000 | — | ||||||
| Cash paid to other related investment activities |
2,284,187 | 690,541 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash outflows |
-1,102,904 | -11,432 | ||||||
|
|
|
|
|
|||||
15
Table of Contents
CONSOLIDATED CASH FLOW STATEMENTS (Continue)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2017 (Unaudited)
Unit: RMB’000
| Nine months ended 30 September | ||||||||
| Items |
2017 | 2016 | ||||||
| 3. Cash flows from financing activities |
||||||||
| Cash received from the investment |
54,580 | — | ||||||
| Cash received from borrowings |
111,647 | 2,087,432 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash inflows |
166,227 | 2,087,432 | ||||||
|
|
|
|
|
|||||
| Cash repayments of borrowings |
59,422 | 3,820,000 | ||||||
| Cash paid for distribution of dividends or profits and interest expenses |
2,717,134 | 1,124,473 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash outflows |
2,776,556 | 4,944,473 | ||||||
|
|
|
|
|
|||||
| Net cash flows generated from financing activities (“ - ” to indicate net cash flows used in financing activities) |
-2,610,329 | -2,857,041 | ||||||
|
|
|
|
|
|||||
| 4. Effect of foreign exchange rate changes on cash and cash equivalents |
-3,263 | -3,499 | ||||||
| 5. Net increase in cash and cash equivalents |
1,352,307 | 2,429,499 | ||||||
| Add: Cash and cash equivalents at beginning of the period |
5,440,623 | 1,077,430 | ||||||
| 6. Cash and cash equivalents at end of the period |
6,792,930 | 3,506,929 | ||||||
16
Table of Contents
CASH FLOW STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2017 (Unaudited)
Unit: RMB’000
| Nine months ended 30 September | ||||||||
| Items |
2017 | 2016 | ||||||
| 1. Cash flows from operating activities |
||||||||
| Cash received from sales of goods or rendering of services |
55,130,684 | 45,131,420 | ||||||
| Refund of taxes and surcharges |
23,383 | 102,887 | ||||||
| Cash received relating to other operating activities |
24,477 | 9,650 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash inflows |
55,178,544 | 45,243,957 | ||||||
|
|
|
|
|
|||||
| Cash paid for goods and services |
35,542,670 | 25,397,519 | ||||||
| Cash paid to and on behalf of employees |
1,569,002 | 1,623,062 | ||||||
| Payments of taxes and surcharges |
12,567,177 | 12,933,155 | ||||||
| Cash paid relating to other operating activities |
414,158 | 727,942 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash outflows |
50,093,007 | 40,681,678 | ||||||
|
|
|
|
|
|||||
| Net cash flows generated from operating activities |
5,085,537 | 4,562,279 | ||||||
|
|
|
|
|
|||||
| 2. Cash flows from investing activities |
||||||||
| Cash received from returns on investments |
448,131 | 554,150 | ||||||
| Net cash received from disposal of fixed assets |
1,129 | -5,505 | ||||||
| Cash received relating to other investing activities |
625,353 | 40,646 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash inflows |
1,074,613 | 589,291 | ||||||
|
|
|
|
|
|||||
| Cash paid to acquire fixed assets, intangible assets and other long-term assets |
771,229 | 640,638 | ||||||
| Cash paid to other related investment activities |
1,500,000 | — | ||||||
|
|
|
|
|
|||||
| Sub-total of cash outflows |
2,271,229 | 640,638 | ||||||
|
|
|
|
|
|||||
| Net cash flows used in investing activities |
-1,196,616 | -51,347 | ||||||
|
|
|
|
|
|||||
17
Table of Contents
CASH FLOW STATEMENTS (Continue)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2017 (Unaudited)
Unit: RMB’000
| Nine months ended 30 September | ||||||||
| Items |
2017 | 2016 | ||||||
| 3. Cash flows from financing activities |
||||||||
| Cash received from the investment |
54,580 | — | ||||||
| Cash received from borrowings |
18,000 | 2,512,000 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash inflows |
72,580 | 2,512,000 | ||||||
|
|
|
|
|
|||||
| Cash repayments of borrowings |
72,000 | 4,619,000 | ||||||
| Cash paid for distribution of dividends or profits and interest expenses |
2,708,824 | 1,122,099 | ||||||
|
|
|
|
|
|||||
| Sub-total of cash outflows |
2,780,824 | 5,741,099 | ||||||
|
|
|
|
|
|||||
| Net cash flows used in financing activities |
-2,708,244 | -3,229,099 | ||||||
|
|
|
|
|
|||||
| 4. Effect of foreign exchange rate changes on cash and cash equivalents |
-562 | — | ||||||
| 5. Net increase in cash and cash equivalents |
1,180,115 | 1,281,833 | ||||||
| Add: Cash and cash equivalents at beginning of the period |
4,421,143 | 942,264 | ||||||
| 6. Cash and cash equivalents at end of the period |
5,601,258 | 2,224,097 | ||||||
| By Order of the Board Sinopec Shanghai Petrochemical Company Limited Wang Zhiqing Chairman |
Shanghai, the PRC, 26 October 2017
18