Exhibit 99.1
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Sinopec Shanghai Petrochemical Company Limited
中國石化上海石油化工股份有限公司
(A joint stock limited company incorporated in the People’s Republic of China)
(Stock Code:00338)
2023 THIRD QUARTERLY REPORT
This announcement is published simultaneously in Shanghai and Hong Kong. This announcement is published pursuant to the Rules Governing Listing of Stocks on Shanghai Stock Exchange in the People’s Republic of China. This announcement is published pursuant to the disclosure obligations under Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
| 1. | IMPORTANT MESSAGE |
| 1.1 | The Board of Directors (the “Board”) and the Supervisory Committee of Sinopec Shanghai Petrochemical Company Limited (the “Company”, together with its subsidiaries, the “Group”) as well as its directors, supervisors and senior management warrant the truthfulness, accuracy and completeness of the information contained in the 2023 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 | Mr. Wan Tao, Chairman of the Company, Mr. Du Jun, executive director, deputy president and CFO, overseeing the accounting operations, and Ms. Fu Hejuan, person in charge of Accounting Department (Accounting Chief) and Deputy Director of Finance Department warrant the truthfulness, accuracy and completeness of the financial information contained in this third quarterly report. |
| 1.3 | The financial report of the Company’s 2023 third quarterly report was prepared under the China Accounting Standards for Business Enterprises and was unaudited. |
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| 2. | MAJOR ACCOUNTING DATA |
| 2.1 | Major Financial Report Items and Financial Indicators |
Unit: RMB’000
| The | The corresponding period of the previous year |
Increase/ decrease during the Reporting Period as compared to the corresponding period of the previous year (%) |
From the beginning of the year to the end of the Reporting Period |
The corresponding period of the previous year |
Increase/ decrease during the beginning of the year to the end of the Reporting Period as compared to the corresponding period of the previous year (%) | |||||||||||||||||||||||
| Item |
Reporting Period |
Before adjustment |
After adjustment |
After adjustment |
Before adjustment |
After adjustment |
After adjustment | |||||||||||||||||||||
| Revenue |
24,922,150 | 11,878,206 | 11,878,206 | 109.81% | 69,859,201 | 57,778,561 | 57,778,561 | 20.91% | ||||||||||||||||||||
| Net profit attributable to equity shareholders of the Company |
268,831 | -1,566,776 | -1,565,926 | Not Applicable | -719,446 | -2,002,785 | -2,001,968 | Not Applicable | ||||||||||||||||||||
| Net profit attributable to equity shareholders of the Company excluding non-recurring items |
285,337 | -1,529,123 | -1,528,273 | Not Applicable | -686,813 | -1,931,667 | -1,930,850 | Not Applicable | ||||||||||||||||||||
| Net cash flows generated from operating activities |
-661,434 | 1,670,792 | 1,670,792 | -139.59% | -888,316 | -4,734,330 | -4,734,330 | Not Applicable | ||||||||||||||||||||
| Basic earnings per share (RMB/share) |
0.025 | -0.145 | -0.145 | Not Applicable | -0.067 | -0.185 | -0.185 | Not Applicable | ||||||||||||||||||||
| Diluted earnings per share (RMB/share) |
0.025 | -0.145 | -0.145 | Not Applicable | -0.067 | -0.185 | -0.185 | Not Applicable | ||||||||||||||||||||
| Return on net assets (weighted average) (%) |
1.058 | -5.472 | –5.469 | Increased by 6.527 percentage points | –2.778 | –6.920 | –6.917 | Increased by 4.139 percentage points | ||||||||||||||||||||
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| As at the end of the |
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 (%) |
||||||||||||||
| Reporting Period |
Before adjustment |
After adjustment |
After adjustment |
|||||||||||||
| Total assets |
39,320,227 | 41,242,740 | 41,242,782 | -4.66 | % | |||||||||||
| Total equity attributable to equity shareholders of the Company |
25,552,914 | 26,243,705 | 26,243,746 | -2.63 | % | |||||||||||
Note: The Reporting Period thereafter means three months from July to September in 2023.
Reasons for retroactive adjustment or restatement
Since 1 January 2023, the Group has implemented the requirement of the “Accounting of deferred income tax related to assets and liabilities arising from an individual transaction not applicable to initial recognition exemption” under the “Interpretation of Accounting Standards for Business Enterprises No. 16” promulgated by the Ministry of Finance.
According to the provisions of Interpretation No. 16, if the individual transaction of the Group is not a business combination, or its occurrence does not affect the accounting profit nor taxable income (or deductible loss), and the initially recognized assets and liabilities result in equal taxable temporary difference and deductible temporary difference, the provisions of “Accounting Standards for Business Enterprises No. 18-Income Tax” on the exemption from the initial recognition of deferred income tax liabilities and deferred income tax assets are not applicable. According to the “Accounting Standards for Business Enterprises No. 18-Income Tax” and other relevant regulations, as for the taxable temporary difference and deductible temporary difference arising from the initial recognition of assets and liabilities, the Group recognizes the corresponding deferred income tax liabilities and deferred income tax assets respectively when the transaction occurs.
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The above regulations have come into effect on 1 January 2023. The Group has made retrospective adjustments to the individual transactions that occurred between 1 January 2022 and the date of initial implementation to which the regulations apply. For the lease liabilities and right-of-use assets recognized on 1 January 2022 due to the individual transactions subject to the regulations resulting in taxable temporary difference and deductible temporary difference, the Group adjusted the cumulative impact amount to the opening retained earnings and other related financial statement items of the earliest period presented in the financial statements in accordance with the regulations and the “Accounting Standards for Business Enterprises No. 18-Income Tax”.
| 2.2 | Excluded Non-recurring Items and Amount |
Unit: RMB’000
| Item |
Amount for the Reporting Period |
Amount from the beginning of the year to the end of the Reporting Period |
Note | |||||||
| Earnings or losses on disposal of non-current assets |
2,654 | -6,222 | — | |||||||
| Government grants recognized in current profits and losses, except for those closely related to the regular operating of the Company in compliance with national policies and regulations, and continuously satisfying quotas or quantities according to certain standards |
3,596 | 15,995 | — | |||||||
| Other non-operating income and expenses other than those mentioned above |
-18,324 | -28,218 | — | |||||||
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| Item |
Amount for the Reporting Period |
Amount from the beginning of the year to the end of the Reporting Period |
Note | |||||||
| Other earnings or losses meeting the definition of non-recurring earnings or losses |
-7,710 | -19,672 | Amount in the Reporting Period: -6,549 for dismissal welfare and -1,161 for discount loss of receivables;
Amount from the beginning of the year to the end of the Reporting Period: -16,514 for dismissal welfare and -3,158 for discount loss of receivables | |||||||
| Less: Tax effect for the items above |
3,203 | 5,562 | — | |||||||
| Effect on non-controlling interests (after tax) |
75 | -78 | — | |||||||
| Total |
-16,506 | -32,633 | — | |||||||
Explanations on defining the non-recurring earnings or losses items set out in the “Explanatory Announcement No. 1 on Information Disclosure by Companies Offering Securities to the Public – Non-Recurring Earnings or Losses” as recurring earnings or losses items
☐ Applicable ✓ Not Applicable
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| 2.3 | Description and Reasons of Substantial Changes in Major Financial Report Items and Financial Indicators |
✓ Applicable ☐ Not Applicable
| Item |
Change (%) |
Major reason | ||||
| Operating Profit_during the Reporting Period |
109.81% | During the Reporting Period, crude oil processing volume increased compared with the corresponding period last year, and sales of synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products rose compared with the corresponding period last year. | ||||
|
Net profit attributable to equity shareholders of the Company_during the Reporting Period |
|
Not |
|
During the Reporting Period, production and sales of petrochemical products increased, unit costs decreased year-on-year and gross profit increased year-on-year, resulting in higher operating results for the Reporting Period. | ||
|
Net profit attributable to equity shareholders of the Company excluding nonrecurring items_during the Reporting Period |
|
Not |
| |||
|
Basic earnings per share (RMB/share)_ during the Reporting Period |
|
Not |
| |||
|
Diluted earnings per share (RMB/share)_ during the Reporting Period |
|
Not |
| |||
|
Net cash flows generated from operating activities_during the Reporting Period |
|
-139.59% |
|
During the Reporting Period, the cash paid for purchasing goods and receiving services increased compared with the corresponding period last year. | ||
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| Item |
Change (%) |
Major reason | ||||
| Net profit attributable to equity shareholders of the Company_ from the beginning of the year to the end of the Reporting Period |
|
Not Applicable |
|
From the beginning of the year to the end of the Reporting Period, the production and sales of petrochemical products increased, and the price of the main products declined less than that of crude oil, resulting in a year-on-year increase in the operating results from the beginning of the year to the end of the Reporting Period. | ||
|
Net profit attributable to equity shareholders of the Company excluding nonrecurring items_from the beginning of the year to the end of the Reporting Period |
|
Not |
| |||
|
Basic earnings per share (RMB/share)_ from the beginning of the year to the end of the Reporting Period |
|
Not |
| |||
|
Diluted earnings per share (RMB/share)_ from the beginning of the year to the end of the Reporting Period |
|
Not |
| |||
|
Net cash flows generated from operating activities_ from the beginning of the year to the end of the Reporting Period |
|
Not |
|
From the beginning of the year to the end of the Reporting Period, the cash received from selling goods and providing services increased compared with the corresponding period last year. | ||
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| 3. | SHAREHOLDERS’ INFORMATION |
| 3.1 | Total Number of Shareholders and the Number of Preferred Shareholders with Voting Rights Restored and Shareholdings of the Top Ten Shareholders |
Unit: Share
| Number of shareholders as at the end of the Reporting Period |
92,649 | Total number of preferred shareholders with voting rights restored as at the end of the Reporting Period (if any) | 0 |
| Shareholdings of the top ten shareholders |
||||||||||||||||||||||
| Name of shareholder |
Type of shareholder |
Number of shares held |
Percentage of total shareholding (%) |
Number of shares with selling restrictions |
Number of shares pledged, marked or frozen |
|||||||||||||||||
| Situation of the shares |
Number | |||||||||||||||||||||
| China Petroleum & Chemical Corporation |
State-owned legal person | 5,459,455,000 | 50.55 | % | 0 | None | 0 | |||||||||||||||
| HKSCC (Nominees) Limited |
Overseas legal person | 3,451,266,030 | 31.96 | % | 0 | Unknown | — | |||||||||||||||
| HKSCC Limited |
Overseas legal person | 102,580,022 | 0.95 | % | 0 | None | 0 | |||||||||||||||
| Wang Lei |
Domestic natural person | 46,120,300 | 0.43 | % | 0 | None | 0 | |||||||||||||||
| Southern Fund– Agricultural Bank of China – Southern CSI Financial Asset Management Plan |
Others | 39,031,700 | 0.36 | % | 0 | None | 0 | |||||||||||||||
| GF Fund – Agricultural Bank of China – GF CSI Financial Asset Management Plan |
Others | 38,039,800 | 0.35 | % | 0 | None | 0 | |||||||||||||||
| Yinhua Fund– Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan |
Others | 37,251,516 | 0.34 | % | 0 | None | 0 | |||||||||||||||
| Dacheng Fund – Agricultural Bank of China – Dacheng CSI Financial Asset Management Plan |
Others | 37,028,669 | 0.34 | % | 0 | None | 0 | |||||||||||||||
| Bosera Fund – Agricultural Bank of China – Bosera CSI Financial Asset Management Plan |
Others | 28,377,600 | 0.26 | % | 0 | None | 0 | |||||||||||||||
| Harvest Fund – Agricultural Bank of China – Harvest CSI Financial Asset Management Plan |
Others | 25,583,100 | 0.24 | % | 0 | None | 0 | |||||||||||||||
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| Shareholdings of the top ten shareholders with unrestricted shares |
||||||||||
| Name of shareholder |
Number of unrestricted tradable shares |
Type and quantity of shares |
||||||||
| Type of shares |
Quantity | |||||||||
| China Petroleum & Chemical Corporation |
5,459,455,000 | RMB common stocks | 5,459,455,000 | |||||||
| HKSCC (Nominees) Limited |
3,451,266,030 | Overseas listed foreign shares | 3,451,266,030 | |||||||
| HKSCC Limited |
102,580,022 | RMB common stocks | 102,580,022 | |||||||
| Wang Lei |
46,120,300 | RMB common stocks | 46,120,300 | |||||||
| Southern Fund– Agricultural Bank of China – Southern CSI Financial Asset Management Plan |
39,031,700 | RMB common stocks | 39,031,700 | |||||||
| GF Fund – Agricultural Bank of China – GF CSI Financial Asset Management Plan |
38,039,800 | RMB common stocks | 38,039,800 | |||||||
| Yinhua Fund– Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan |
37,251,516 | RMB common stocks | 37,251,516 | |||||||
| Dacheng Fund – Agricultural Bank of China – Dacheng CSI Financial Asset Management Plan |
37,028,669 | RMB common stocks | 37,028,669 | |||||||
| Bosera Fund – Agricultural Bank of China – Bosera CSI Financial Asset Management Plan |
28,377,600 | RMB common stocks | 28,377,600 | |||||||
| Harvest Fund – Agricultural Bank of China – Harvest CSI Financial Asset Management Plan |
25,583,100 | RMB common stocks | 25,583,100 | |||||||
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| Explanation of the connected relationship or acting in concert relationship of the above shareholders |
Among the above-mentioned shareholders, China Petroleum & Chemical Corporation, a state-owned legal person, does not have any connected relationship with the other shareholders, and does not constitute an act-in-concert party under the Administration Measures on Acquisition of Listed Companies. Among the above-mentioned shareholders, HKSCC (Nominees) Limited is a nominee and HKSCC Limited is the nominal holder of the Company’s Shanghai-Hong Kong Stock Connect. Apart from the above, the Company is not aware of any other connected relationships among the other shareholders, or whether any other shareholder constitutes an act-in-concert party under the Administrative Measures on Acquisition of Listed Companies. | |
| Explanation of the top ten shareholders and the top ten shareholders with unrestricted shares engaging in margin financing and securities lending as well as margin and securities refinancing business (if any) |
Not Applicable | |
| 4. | OTHER REMINDERS |
Other important information about the operation of the Company during the Reporting Period that investors should be reminded of
☐ Applicable ✓ Not Applicable
| 5. | QUARTERLY FINANCIAL REPORT |
| 5.1 | Type of Audit Opinions |
☐ Applicable ✓ Not Applicable
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| 5.2 | The financial report |
CONSOLIDATED BALANCE SHEETS
30 September 2023
Prepared by: Sinopec Shanghai Petrochemical Company Limited
Unit: RMB’000 Audit type: unaudited
| Items | As at 30 September 2023 |
As at 31 December 2022 |
||||||
| Current assets: |
||||||||
| Cash at bank and on hand |
6,442,930 | 3,998,332 | ||||||
| Derivative financial assets |
21,283 | — | ||||||
| Account receivable |
2,326,544 | 2,512,362 | ||||||
| Receivables under financing |
562,443 | 582,354 | ||||||
| Prepayments |
82,352 | 67,008 | ||||||
| Other receivables |
196,462 | 190,579 | ||||||
| Inventories |
5,776,933 | 7,294,060 | ||||||
| Other current assets |
210,887 | 1,121,187 | ||||||
| Total current assets |
15,619,834 | 15,765,882 | ||||||
| Non-current assets: |
||||||||
| Long-term equity investments |
3,301,381 | 3,594,393 | ||||||
| Other equity instrument investment |
5,000 | 5,000 | ||||||
| Other non-current financial assets |
26,500 | — | ||||||
| Investment properties |
324,848 | 336,863 | ||||||
| Fixed assets |
14,280,256 | 12,195,527 | ||||||
| Construction in progress |
946,784 | 3,748,461 | ||||||
| Right-of-use assets |
11,716 | 16,085 | ||||||
| Intangible assets |
357,664 | 372,640 | ||||||
| Long-term prepaid expenses |
602,708 | 776,480 | ||||||
| Deferred tax assets |
1,084,624 | 991,892 | ||||||
| Other non-current assets |
2,758,912 | 3,439,559 | ||||||
| Total non-current assets |
23,700,393 | 25,476,900 | ||||||
| Total assets |
39,320,227 | 41,242,782 | ||||||
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| Items | As at 30 September 2023 |
As at 31 December 2022 |
||||||
| Current liabilities: |
||||||||
| Short-term borrowings |
5,045,000 | 1,550,000 | ||||||
| Derivative financial liabilities |
12,585 | — | ||||||
| Notes payable |
615,672 | 40,951 | ||||||
| Accounts payable |
3,497,722 | 9,144,554 | ||||||
| Contract liabilities |
795,811 | 383,246 | ||||||
| Employee benefits payable |
838,395 | 317,891 | ||||||
| Taxes payable |
958,448 | 889,856 | ||||||
| Other payables |
911,127 | 1,618,352 | ||||||
| Non-current liabilities due within one year |
709,858 | 8,738 | ||||||
| Other current liabilities |
88,848 | 44,750 | ||||||
| Total current liabilities |
13,473,466 | 13,998,338 | ||||||
| Non-current liabilities: |
||||||||
| Long-term borrowing |
— | 700,000 | ||||||
| Lease liabilities |
4,758 | 7,513 | ||||||
| Deferred revenue |
127,700 | 134,608 | ||||||
| Deferred tax liabilities |
30,922 | 30,898 | ||||||
| Total non-current liabilities |
163,380 | 873,019 | ||||||
| Total liabilities |
13,636,846 | 14,871,357 | ||||||
| Owners’ equity (or shareholders’ equity): |
||||||||
| Paid-in capital (or share capital) |
10,799,286 | 10,823,814 | ||||||
| Capital surplus |
609,166 | 610,327 | ||||||
| Less: Treasury stock |
— | 25,689 | ||||||
| Other comprehensive income |
5,697 | (806 | ) | |||||
| Specific reserve |
262,529 | 240,418 | ||||||
| Surplus reserve |
6,672,634 | 6,672,634 | ||||||
| Undistributed profits |
7,203,602 | 7,923,048 | ||||||
| Total equity attributable to owners (or shareholders) of the Company |
25,552,914 | 26,243,746 | ||||||
| Non-controlling interests |
130,467 | 127,679 | ||||||
| Total owners’ equity (or shareholders’ equity) |
25,683,381 | 26,371,425 | ||||||
| Total liabilities and owners’ equity (or shareholders’ equity) |
39,320,227 | 41,242,782 | ||||||
| Person in charge | Person in charge | Person in charge of | ||
| of the Company: | of accounting: | accounting department: | ||
| Wan Tao | Du Jun | Fu Hejuan |
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CONSOLIDATED INCOME STATEMENTS
January to September 2023
Prepared by: Sinopec Shanghai Petrochemical Company Limited
Unit: RMB’000 Audit type: unaudited
| Items | First three quarters of 2023 (January to September) |
First three quarters of 2022 (January to September) |
||||||
| 1. Total revenue |
69,859,201 | 57,778,561 | ||||||
| Including: Revenue |
69,859,201 | 57,778,561 | ||||||
| 2. Total operating cost |
70,630,335 | 60,185,533 | ||||||
| Including: Cost of sales |
58,956,016 | 51,267,019 | ||||||
| Taxes and surcharges |
9,629,262 | 6,972,764 | ||||||
| Selling and distribution expenses |
227,362 | 211,241 | ||||||
| General and administrative expenses |
1,399,633 | 1,586,069 | ||||||
| R&D expenses |
112,338 | 82,916 | ||||||
| Financial expenses |
-178,659 | -374,135 | ||||||
| Add: Other income |
7,782 | 12,471 | ||||||
| Investment income (“-” to indicate loss) |
-204,058 | -185,032 | ||||||
| Profit arising from changes in fair value (“-” to indicate loss) |
— | 1,819 | ||||||
| Credit impairment losses (“-” to indicate loss) |
551 | -4,893 | ||||||
| Asset impairment losses (“-” to indicate loss) |
-289,092 | -262,962 | ||||||
| Gains on disposal of assets (“-” to indicate loss) |
434 | -1,062 | ||||||
| 3. Operating profit (“-” to indicate loss) |
-771,134 | -2,406,972 | ||||||
| Add: Non-operating income |
29,865 | 15,135 | ||||||
| Less: Non-operating expenses |
56,526 | 63,399 | ||||||
| 4. Total profit (“-” to indicate loss) |
-797,795 | -2,455,236 | ||||||
| Less: Income tax expenses |
-81,137 | -457,773 | ||||||
| 5. Net Profit (“-” to indicate loss) |
-716,658 | -1,997,463 | ||||||
| (1) Classification by business continuity |
||||||||
| 1. Profit from continuing operations (“-” to indicate loss) |
-716,658 | -1,997,463 | ||||||
| (2) Classification by ownership |
||||||||
| 1. Attributable to equity shareholders of the Company (“-” to indicate loss) |
-719,446 | -2,001,968 | ||||||
| 2. Non-controlling interests (“-” to indicate loss) |
2,788 | 4,505 | ||||||
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| Items | First three quarters of 2023 (January to September) |
First three quarters of 2022 (January to September) |
||||||
| 6. Other comprehensive income, net of tax |
42,610 | 220,443 | ||||||
| (1) Other comprehensive income, net of tax attributable to owners of the Company |
42,610 | 220,443 | ||||||
| 1. Items that may not be reclassified to profit or loss using the equity method |
— | — | ||||||
| 2. Items that may be reclassified to profit or loss using the equity method |
42,610 | 220,443 | ||||||
| (1) Items that may be reclassified to profit or loss using the equity method |
-21 | -22,558 | ||||||
| (2) Cash flow hedging reserves |
42,631 | 243,001 | ||||||
| (2) Other comprehensive income, net of tax attributable to non-controlling interests |
— | — | ||||||
| 7. Total comprehensive income |
-674,048 | -1,777,020 | ||||||
| (1) Attributable to owners of the Company |
-676,836 | -1,781,525 | ||||||
| (2) Attributable to non-controlling interests |
2,788 | 4,505 | ||||||
| 8. Earnings per share: |
||||||||
| (1) Basic earnings per share (RMB/share) |
-0.067 | -0.185 | ||||||
| (2) Diluted earnings per share (RMB/share) |
-0.067 | -0.185 | ||||||
| Person in charge | Person in charge | Person in charge of | ||
| of the Company: | of accounting: | accounting department: | ||
| Wan Tao | Du Jun | Fu Hejuan |
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CONSOLIDATED CASH FLOW STATEMENTS
January to September 2023
Prepared by: Sinopec Shanghai Petrochemical Company Limited
Unit: RMB’000 Audit type: unaudited
| Items | First three quarters of 2023 (January to September) |
First three quarters of 2022 (January to September) | ||
| 1. Cash flows from operating activities: |
||||
| Cash received from sales of goods or rendering of services |
77,343,192 | 62,557,584 | ||
| Tax refund received |
538,646 | 1,183,540 | ||
| Cash received relating to other operating activities |
209,563 | 180,928 | ||
| Sub-total of cash inflows |
78,091,401 | 63,922,052 | ||
| Cash paid for goods and services |
66,807,104 | 55,594,090 | ||
| Cash paid to and on behalf of employees |
2,243,315 | 2,267,514 | ||
| Payments of taxes and surcharges |
9,510,014 | 10,385,945 | ||
| Cash paid relating to other operating activities |
419,284 | 408,833 | ||
| Sub-total of cash outflows |
78,979,717 | 68,656,382 | ||
| Net cash flows generated from operating activities |
-888,316 | -4,734,330 | ||
| 2. Cash flows from investing activities: |
||||
| Cash received from investment recovery |
50,000 | 150,000 | ||
| Cash received from returns on investments |
92,091 | 671,805 | ||
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets |
83,575 | 10,401 | ||
| Cash received relating to other investing activities |
3,197,709 | 8,957,483 | ||
| Sub-total of cash inflows |
3,423,375 | 9,789,689 | ||
| Cash paid to acquire fixed assets, intangible assets and other long-term assets |
1,042,457 | 1,899,984 | ||
| Cash paid for investment |
26,500 | 1,000,000 | ||
| Net cash received from subsidiaries and other business units |
— | 296,672 | ||
| Cash paid to other related investment activities |
— | 2,802,657 | ||
| Sub-total of cash outflows |
1,068,957 | 5,999,313 | ||
| Net cash flows generated from investment activities |
2,354,418 | 3,790,376 |
- 15 -
| Items | First three 2023 (January to September) |
First three quarters of 2022 (January to September) | ||
| 3. Cash flows from financing activities: |
||||
| Cash received from borrowings |
24,045,000 | 16,485,000 | ||
| Cash received from short-term bonds |
— | 5,000,000 | ||
| Sub-total of cash inflows |
24,045,000 | 21,485,000 | ||
| Cash repayments of borrowings |
20,550,000 | 15,984,800 | ||
| Cash repayments of short-term bonds |
— | 3,000,000 | ||
| Cash paid for distribution of dividends or profits and interest expenses |
103,417 | 1,182,055 | ||
| Cash and interest repaid for lease liabilities |
10,913 | 9,629 | ||
| Sub-total of cash outflows |
20,664,330 | 20,176,484 | ||
| Net cash flows generated from financing activities |
3,380,670 | 1,308,516 | ||
| 4. Effect of foreign exchange rate changes on cash and cash equivalents |
6,159 | 18,115 | ||
| 5. Net increase in cash and cash equivalents |
4,852,931 | 382,677 | ||
| Add: Cash and cash equivalents at beginning of the reporting period |
889,413 | 5,112,010 | ||
| 6. Cash and cash equivalents at end of the reporting period |
5,742,344 | 5,494,687 |
| Person in charge | Person in charge | Person in charge of | ||
| of the Company: | of accounting: | accounting department: | ||
| Wan Tao | Du Jun | Fu Hejuan |
Adjustments to financial report at the beginning of the year relating to the initial adoption of the new accounting standards or interpretation of standards since 2023
✓ Applicable ☐ Not Applicable
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Explanation of reasons for adjustments on the financial statements at the beginning of the year
In 2023, the Group has implemented the relevant requirements and guidelines of the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance in recent years:
Requirement of the “Accounting of deferred income tax related to assets and liabilities arising from an individual transaction not applicable to initial recognition exemption” in Interpretation No.16.
| (a) | Requirement of the accounting of deferred income tax related to assets and liabilities arising from an individual transaction not applicable to initial recognition exemption |
According to the provisions of Interpretation No. 16, if the individual transaction of the Group is not a business combination, or its occurrence does not affect the accounting profit nor taxable income (or deductible loss), and the initially recognized assets and liabilities result in equal taxable temporary difference and deductible temporary difference, the provisions of “Accounting Standards for Business Enterprises No. 18-Income Tax” on the exemption from the initial recognition of deferred income tax liabilities and deferred income tax assets are not applicable. According to the “Accounting Standards for Business Enterprises No. 18-Income Tax” and other relevant regulations, as for the taxable temporary difference and deductible temporary difference arising from the initial recognition of assets and liabilities, the Group recognizes the corresponding deferred income tax liabilities and deferred income tax assets respectively when the transaction occurs.
The above regulations have come into effect on 1 January 2023. The Group has made retrospective adjustments to the individual transactions that occurred between 1 January 2022 and the date of initial implementation to which the regulations apply. For the lease liabilities and right-of-use assets recognized on 1 January 2022 due to the individual transactions subject to the regulations resulting in taxable temporary difference and deductible temporary difference, the Group adjusted the cumulative impact amount to the opening retained earnings and other related financial statement items of the earliest period presented in the financial statements in accordance with the regulations and the “Accounting Standards for Business Enterprises No. 18-Income Tax”.
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| (b) | Impacts of the change on the comparative financial report |
The impacts of the above change in the accounting policy on net loss for the nine months ended 30 September 2022 and owners’ equity at the beginning and the end of 2022 are summarized as follows:
Unit: RMB’000
| Items | Net loss for the nine months ended 30 September 2022 |
Equity at the end of 2022 |
Equity at the beginning of 2022 |
|||||||||
| Net loss and shareholders’ equity before adjustment |
1,998,274 | 26,371,386 | 30,395,431 | |||||||||
| Deferred income tax relating to assets and liabilities arising from an individual transaction does not apply to the impact of initial recognition exemptions |
-811 | 39 | -67 | |||||||||
| Adjusted net loss and equity |
1,997,463 | 26,371,425 | 30,395,364 | |||||||||
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The effects on the consolidated balance sheets as at 31 December 2022 are analysed as follows:
CONSOLIDATED BALANCE SHEETS
Unit: RMB’000
| Items | As at 31 December 2022 before adjustment |
As at 31 December 2022 after adjustment |
Adjustment | |||||||||
| Non-current assets: |
||||||||||||
| Deferred tax assets |
991,850 | 991,892 | 42 | |||||||||
| Total non-current assets |
25,476,858 | 25,476,900 | 42 | |||||||||
| Total assets |
41,242,740 | 41,242,782 | 42 | |||||||||
| Non-current liabilities: |
||||||||||||
| Deferred tax liabilities |
30,895 | 30,898 | 3 | |||||||||
| Total non-current liabilities |
873,016 | 873,019 | 3 | |||||||||
| Total liabilities |
14,871,354 | 14,871,357 | 3 | |||||||||
| Owners’ equity (or shareholders’ equity): |
||||||||||||
| Surplus reserve |
6,672,639 | 6,672,634 | -5 | |||||||||
| Undistributed profits |
7,923,002 | 7,923,048 | 46 | |||||||||
| Total equity attributable to owners (or shareholders) of the Company |
26,243,705 | 26,243,746 | 41 | |||||||||
| Non-controlling interests |
127,681 | 127,679 | -2 | |||||||||
| Total owners’ equity (or shareholders’ equity) |
26,371,386 | 26,371,425 | 39 | |||||||||
| Total liabilities and owners’ equity (or shareholders’ equity) |
41,242,740 | 41,242,782 | 42 | |||||||||
The effects on the consolidated income statements for the nine months ended 30 September 2022 are analysed as follows:
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CONSOLIDATED INCOME STATEMENTS
Unit: RMB’000
| Items | Before adjustment for the first three quarters of 2022 (January to September) |
After adjustment for the first three quarters of 2022 (January to September) |
Adjustment | |||||||||
| Less: Income tax expenses | -456,962 | -457,773 | -811 | |||||||||
| V. Net Profit (“-” to indicate loss) |
-1,998,274 | -1,997,463 | 811 | |||||||||
| (1) Classification by business continuity |
||||||||||||
| 1. Net profit from continuing operations |
-1,998,274 | -1,997,463 | 811 | |||||||||
| (2) Classification by ownership |
||||||||||||
| 1. Attributable to equity shareholders of the Company (“-” to indicate loss) |
-2,002,785 | -2,001,968 | 817 | |||||||||
| 2. Non-controlling interests (“-” to indicate loss) |
4,511 | 4,505 | -6 | |||||||||
| VII. Total comprehensive income |
-1,777,831 | -1,777,020 | 811 | |||||||||
| Attributable to equity owners of the Company |
-1,782,342 | -1,781,525 | 817 | |||||||||
| Attributable to non-controlling interests |
4,511 | 4,505 | -6 | |||||||||
| VIII. Earnings per share |
||||||||||||
| (1) Basic earnings per share (RMB) |
-0.185 | -0.185 | — | |||||||||
| (2) Diluted earnings per share (RMB) |
-0.185 | -0.185 | — | |||||||||
| By Order of the Board | ||
| Sinopec Shanghai Petrochemical Company Limited Liu Gang | ||
| Joint Company Secretary | ||
| Shanghai, the PRC, 25 October 2023 |
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As at the date of this announcement, the executive directors of the Company are Wan Tao, Guan Zemin, Du Jun and Huang Xiangyu; the non-executive directors of the Company are Xie Zhenglin and Qin Zhaohui; and the independent non-executive directors of the Company are Tang Song, Chen Haifeng, Yang Jun, Zhou Ying and Huang Jiangdong.
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