form6-k.htm
 
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934

For the month of October, 2016

CHINA PETROLEUM & CHEMICAL CORPORATION
22 Chaoyangmen North Street,
Chaoyang District, Beijing, 100728
People's Republic of China
Tel: (8610) 59960114

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F  ü           Form 40-F _____

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ____                No ü 

(If "Yes" is marked, indicate below the file number assigned to registrant in connection with Rule 12g3-2(b): 82-__________. )
N/A

 
 
 

This Form 6-K consists of:

An announcement regarding 2016 third quarterly report of China Petroleum & Chemical Corporation (the “Registrant”), made by the Registrant on October 27, 2016.

 
 
 
 
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibilities 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.

CHINA PETROLEUM & CHEMICAL CORPORATION
(a joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 0386)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.


 
By Order of the Board
China Petroleum & Chemical Corporation
Huang Wensheng
Vice President and Secretary to the Board of Directors

Beijing, the PRC,
27 October 2016
 

As of the date of this notice, directors of Sinopec Corp. are: directors of Sinopec Corp. are: Wang Yupu*, Dai Houliang#, Wang Zhigang#, Zhang Haichao#, Jiao Fangzheng#, Ma Yongsheng#, Jiang Xiaoming+, Andrew Y. Yan+, Tang Min+ and Fan Gang+.

# Executive Director
* Non-executive Director
+ Independent Non-executive Director

 
1
 
The Third Quarterly Report for 2016
 
 
 
 


China Petroleum & Chemical Corporation
The Third Quarterly Report for 2016















27 October 2016
Beijing, China
 
 
2
 
The Third Quarterly Report for 2016
 
 

1
Important notice

1.1
The Board of Directors, the Supervisory Board of China Petroleum & Chemical Corporation (“Sinopec Corp.” or the “Company”) and its directors, supervisors and senior management warrant that there are no material omissions, misrepresentations or misleading statements contained in this report and severally and jointly accept full responsibility for the authenticity, accuracy and completeness of the information contained in this report.

1.2
The third quarterly report for 2016 (the “Quarterly Report”) was approved at the 10th meeting of the Sixth Session of the Board of Directors of Sinopec Corp. All the directors attended this meeting.

1.3
Mr. Wang Yupu, Chairman of the Board of Directors, Mr. Dai Houliang, Vice Chairman of the Board of Directors and President, Mr. Wang Dehua, Chief Financial Officer and Head of the Corporate Finance Department of Sinopec Corp. warrant the authenticity, accuracy and completeness of the financial statements contained in the Quarterly Report.

1.4
The financial statements in the Quarterly Report were not audited.

 
3
 
The Third Quarterly Report for 2016
 
 

2
Basic information of Sinopec Corp.
 
2.1
Principal Financial Data And Indicators
 
2.1.1
Principal Financial Data and Indicators Prepared in Accordance with PRC Accounting Standards for Business Enterprises (“ASBE”)
 
RMB million
 
As of 30 September 2016
As of 31 December 2015
Changes from the end of the preceding year to the end of the reporting period (%)
Total assets
1,413,148
1,447,268
(2.4)
Total equity attributable to equity shareholders of the Company
692,711
677,538
2.2

 
Nine Months
   Changes over the same period of the preceding year (%)
2016
2015
Net cash flow from operating activities
131,700
116,239
13.3
 
Operating income
1,363,945
1,537,956
(11.3)
Net profit attributable to equity shareholders of the Company
29,166
25,893
12.6
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses
28,337
24,722
14.6
Weighted average return on net assets (%)
 4.26
 4.07
0.19
percentage points
Basic earnings per share (RMB)
0.241
0.214
12.6
Diluted earnings per share (RMB)
0.241
0.214
12.6
 
 
4
 
The Third Quarterly Report for 2016
 
 
 
Extraordinary (gain)/loss items
Third Quarter 2016
RMB million
Nine Months 2016
RMB million
Loss on disposal of non-current assets
112
105
Donations
16
64
Gain on holding and disposal of various investments
371
(471)
Other extraordinary income and expenses, net
(398)
(1,007)
Subtotal
101
(1,309)
Tax effect
8
276
Total
109
(1,033)
Equity shareholders of the Company
131
(829)
Minority interests
(22)
(204)

2.1.2
Principal financial data and indicators prepared in accordance with International Financial Reporting standards (“IFRS”)
 
RMB million
 
As of 30 September 2016
As of 31 December 2015
Changes from the end of the preceding year to the end of the reporting period (%)
Total assets
1,413,148
1,447,268
(2.4)
Equity attributable to owners of the Company
691,447
676,197
2.3

 
Nine Months
  
 
2016
2015
Changes over the same period of the preceding year (%)
Net cash generated from operating activities
131,700
116,239
13.3
 
Operating profit
51,430
49,376
4.2
Net profit attributable to equity shareholders of the Company
30,107
27,075
11.2
Basic earnings per share (RMB)
0.249
0.224
11.2
Diluted earnings per share (RMB)
0.249
0.224
11.2
Return on net assets (%)
4.35
4.00
0.35
percentage points

 
5
 
The Third Quarterly Report for 2016
 
 

2.2
Total number of shareholders and top ten shareholders at the end of the reporting period
 
Total number of shareholders
641,544, including 635,289 holders of domestic A shares and 6,255 holders of overseas H shares.
Top ten shareholders (Top ten shareholders holding shares without selling restrictions)
Name of shareholders
Total number of shares held
Percentage
(%)
Number of shares subject to pledge or lock-ups
Nature of shareholder
China Petrochemical Corporation
85,792,671,101
70.86
0
State-owned share
HKSCC (Nominees) Limited 1
25,377,333,229
20.96
Unknown
H share
中国证券金融股份有限公司
1,827,304,500
1.51
0
 
A share
中央汇金投资有限责任公司
322,037,900
0.27
0
 
A share
香港中央结算有限公司
244,593,847
0.20
0
 
A share
工银瑞信基金－工商银行－特定客户资产管理
151,784,654
0.13
0
 
A share
国泰君安证券股份有限公司
131,145,806
0.11
0
 
A share
中国工商银行－上证50交易型开放式指数证券投资基金
80,522,430
0.07
0
 
A share
交通银行股份有限公司－汇丰晋信双核策略混合型证券投资基金
79,659,571
0.07
0
 
A share
长江证券股份有限公司
77,735,324
0.06
0
 
A share
Note 1:
Sinopec Century Bright Capital Investment Limited, overseas wholly-owned subsidiary of China Petrochemical Corporation, holds 553,150,000 H shares, which is included in the total number of the shares held by HKSCC Nominees Limited.

 
6
 
The Third Quarterly Report for 2016
 
 

2.3
Review of operating results

In the first three quarters of 2016, global economic recovery remained slow. China’s GDP grew by 6.7%. International crude oil prices bottomed out and fluctuated within a wide range in the third quarter, but remained at low level. Domestic refined oil product prices were adjusted timely in line with international crude oil prices. The refined oil products pricing mechanism was further improved with the price floor put into place. Domestic apparent consumption of refined oil products grew by 4.39% over the same period last year, driven by substantial increase of gasoline and kerosene consumption while diesel consumption dropped slightly. Ethylene equivalent consumption maintained roughly flat compared with the same period last year and the competitiveness of naphtha-based chemicals was increased at low oil price environment.

The Company, focusing on growth quality and profitability, further enhanced structure adjustment and management. We optimised market-oriented operation, fully leveraged advantages across the integrated value chain, overcame the impact of natural disaster and coordinated all aspects of work. In accordance with the ASBE and IFRS, net profit attributable to equity shareholders of the Company was RMB 29.166 billion and RMB 30.107 billion respectively in the first three quarters.

Exploration and Production: To address the challenge of low oil prices, the Company effectively optimised exploration and production activities which achieved positive results. In exploration, through technological progress and efficiency promotion, we attained new discoveries in Tahe of Xinjiang Autonomous Region, Beibu Gulf off-shore in Guangxi and Yin-E Basin in Nei Mongol Autonomous Region and new natural gas findings in west Sichuan and Erdos Basin. In development, Phase Two shale gas development project in Fuling Shale Gas field further facilitated our shale gas development. In production, we strengthened cost discipline and reduced high-cost oil production. In the first three quarters, oil and gas production of the Company was 322.29 million barrels of oil equivalent, down by 8.13%, out of which crude oil output dropped 12.58% over the same period last year while natural gas grew by 5.09%. The Exploration and Production Segment had earnings before interest and taxes (EBIT) of RMB -30.865 billion.

Refining: The Company actively responded to challenges arising from sharp increase of throughput from independent refineries, ample market supply and changes in refined oil products demand. We further optimised our refined oil product mix by increasing production of gasoline and kerosene, reduced our crude purchasing costs, kept steady unit load and pressed ahead with refined oil products quality upgrading. Based on customer need, we strengthened marketing service of other refined oil products, such as asphalt and LPG, etc. In the first three quarters, refinery throughput and refined oil products production decreased by 1.72% and 1.04% respectively, among which gasoline up by 3.04%, jet fuel up by 4.28% and diesel down by 5.95% over the same period last year. The Refining Segment had EBIT of RMB 43.504 billion, up by 183.12% over the same period last year.

Marketing and Distribution: In light of ample domestic fuel supply and strong competition in the market, the Company coordinated and optimised internal and external resources, and adjusted marketing efforts, achieving growth in both total sales volume and retail sales volume, especially in retail scale of premium products with high octane number. We further improved our product pipeline network and accelerated the building of service stations. Non-fuel business kept fast

 
7
 
The Third Quarterly Report for 2016
 
 

development momentum owing to synergy between fuel and non-fuel businesses. In the first three quarters, total sales volume of refined oil products was 146 million tonnes, up by 3.53% over the same period last year. Total domestic sales volume of refined oil products was 130 million tonnes, up by 2.27%. Transaction of non-fuel business reached RMB 26.92 billion, up by 40.21% compared with the same period last year. The Marketing and Distribution Segment had EBIT of RMB 25.839 billion, up by 14.50% over the same period last year.

Chemicals: The Company further optimised feedstock and product mix, as well as facilities structure. We further lowered feedstock cost for ethylene. We strengthened the integration among production, sales, product R&D and customer need and continuously optimised operations of manufacturing facilities, which has achieved great results. We strengthened R&D, production and marketing capabilities of new high value-added products, with performance polymer ratio reaching 59.7% and differential ratio of synthetic fibre reaching 84.8%. We also focused on improving customer services to enhance customer loyalty. At the same time, we held firm to our strategies of low inventories and customised marketing. In the first three quarters, ethylene production reached 8.115 million tonnes, down by 1.91% and chemical sales volume was 50.46 million tonnes, up by 11.19% over the same period last year. The Chemicals Segment had EBIT of RMB 19.135 billion, up by 8.95% over the same period last year.

Summary of Principal Operating Results for the First Three Quarters
 
Operating data
Unit
For nine-month period ended 30 September
Changes
(%)
2016
2015
Exploration and production
Oil and gas production1
million boe
322.29
350.82
(8.13)
Crude oil production
million barrels
229.36
262.38
(12.58)
China
million barrels
191.26
222.42
(14.01)
Overseas
million barrels
38.10
39.96
(4.65)
Natural gas production
billion cubic feet
557.15
530.14
5.09
Realised crude oil price
USD/barrel
35.44
48.91
(27.54)
Realised natural gas price
USD/thousand cubic feet
5.48
7.12
(23.03)
Refining2
Refinery throughput
million tonnes
175.25
178.32
(1.72)
Gasoline, diesel and kerosene production
million tonnes
111.02
112.19
(1.04)
 
Gasoline
million tonnes
42.09
40.85
3.04
 
Diesel
million tonnes
50.15
53.32
(5.95)
 
Kerosene
million tonnes
18.78
18.01
4.28
Light chemical feedstock
million tonnes
28.45
29.40
(3.23)
Light products yield
%
76.35
76.62
(0.27)
percentage points
Refining yield
%
94.47
94.78
(0.31) percentage points

 
8
 
The Third Quarterly Report for 2016
 
 
 
  Operating data   Unit
For nine-month period ended 30 September
   Changes (%)
2016
2015
Marketing and Distribution
Total sales of refined oil products
million tonnes
145.72
140.75
3.53
Total domestic sales volume of refined oil products
million tonnes
129.58
126.71
2.27
 
Retail
million tonnes
89.79
88.19
1.81
 
Direct sales & Wholesale
million tonnes
39.79
38.52
3.30
Total number of Sinopec-branded service stations3
stations
30,721
30,560
0.53
 
Company-operated
stations
30,708
30,547
0.53
Annualised average throughput per station4
tonnes/station
3,899
3,857
1.09
Chemical2
Ethylene
thousand tonnes
8,115
8,273
(1.91)
Synthetic resin
thousand tonnes
11,138
11,265
(1.13)
Synthetic rubber
thousand tonnes
619
668
(7.34)
Monomers and polymers for synthetic fibre
thousand tonnes
6,830
6,684
2.18
Synthetic fibre
thousand tonnes
934
967
(3.41)
Note:
1.
Conversion: in the first three quarters of 2016, for domestic production of crude oil, 1 tonne = 7.10 barrels; for overseas production of crude oil, 1 tonne=7.20 barrels; for production of natural gas, 1 cubic meter = 35.31 cubic feet.
2.
Including 100% production of domestic joint ventures.
3.
The number of service stations in 2015 was the number as of 31 December 2015.
4.
Throughput per service station data was annualised.

Capital expenditure: The Company, focusing on growth quality and profitability, strengthened the management of investment return and optimisation of investment project. The Company’s capital expenditures were RMB 24.969 billion in the first three quarters. Capital expenditure for Exploration and Production Segment was RMB 9.206 billion, mainly for Phase Two of shale gas development in Fuling, LNG terminals in Guangxi and Tianjin, and Jinan-Qingdao gas pipeline II. Captial expenditure for refining segment was RMB 4.995 billion, mainly for gasoline and diesel quality upgrading and refinery optimisation and revamping projects. Capital expenditure for marketing and distribution segment was RMB 5.983 billion, mainly for renovation of service stations, refined oil products pipelines, oil depots and safety hazard rectification projects. Capital expenditure for chemical segment was RMB 3.967 billion, mainly for feedstock and product optimisation projects and coal chemical projects. Capital expenditure for corporate and others was RMB 818 million, mainly for R&D facilities and IT application projects.

 
9
 
The Third Quarterly Report for 2016
 
 

3
Significant events
 
3.1
Significant changes in major items contained in the consolidated financial statements prepared in accordance with ASBE and the reasons for such changes.
 
Items of Consolidated Balance Sheet   30 September 2016   31 December 2015
Increase/(decrease)
 Major reasons for changes
Amount
Percentage
RMB
million
RMB
million
RMB
million
(%)
Prepayments
5,040
2,920
 2,120
72.6
Mainly due to increase in the prepayment for refined oil products and crude oil.
Other receivables
10,700
21,453
(10,753)
(50.1)
Mainly due to the settlement and confirmation of gain and loss for hedging derivatives.
Short-term loans
41,581
74,729
(33,148)
(44.4)
Mainly due to repayment of short-term loans.
Other payables
58,739
86,337
(27,598)
(32.0)
Mainly due to settlement and confirmation of gain and loss for hedging derivatives, and increase in payment upon completion of construction projects.
Non-current liabilities due within one year
24,552
11,277
13,275
117.7
Mainly due to reclassification for long-term loans due within one year
Short-term debentures payable
6,000
30,000
(24,000)
(80.0)
Mainly due to repayment of super short-term commercial paper
 
Items of consolidated income statement For nine-month period ended 30 September 2016 For nine-month period ended 30 September 2015
Increase/(decrease)
 Main reasons for changes
Amount
Percentage
RMB
million
RMB
million
RMB
million
(%)
Impairment losses
1,528
327
1,201
367.3
Mainly due to recognition of impairment for some long-term shutdown facilities.
Investment income
7,253
4,807
2,446
50.9
Mainly due to increase in profit from some of the company’s associates and joint ventures.
 
Items of consolidated cash flow statement For nine-month period ended 30 September 2016  For nine-month period ended 30 September 2015
Increase/(decrease)
 Main reasons for changes
Amount
Percentage
RMB
million
RMB
million
RMB
million
(%)
Net cash flow from investing activities
(41,219)
(74,134)
32,915
(44.4)
Mainly due to decrease of capital expenditure in line with changes in market conditions.
Net cash flow from financing activities
(78,568)
4,796
(83,364)
-
Due to capital injection of Sinopec Marketing Co. in the same period last year as well as more repayment of interest-bearing debt than new loans during the reporting period.
 
 
10
 
The Third Quarterly Report for 2016
 
 

3.2
Status of fulfilment of commitments undertaken by the Company, shareholder and actual controller.
 
Background
Type of Undertaking
Party
Contents
Term for performance
Whether bears deadline or not
Whether strictly performed or not
Undertakings related to Initial Public Offerings (IPOs)
Initial Public Offering
(IPO)
China Petrochemical Corporation
1   Compliance with the connected transaction agreements;
2   Solving the issues regarding the legality of land-use rights certificates and property ownership rights certificates within a specified period of time;
3   Implementation of the Reorganization Agreement (please refer to the definition of “Reorganization Agreement” in the H share prospectus of Sinopec Corp.);
4   Granting licenses for intellectual property rights;
5   Avoiding competition within the same industry; and
6   Abandonment of business competition and conflicts of interest with Sinopec Corp.
From June 22, 2001
No
Yes
Other undertakings
Other
China Petrochemical Corporation
China Petrochemical Corporation would dispose of its minor remaining chemicals business within five years in order to avoid competition with Sinopec Corp. in the chemicals business.
Within five years, commencing March 15, 2012
Yes
Yes
Other undertakings
Other
China Petrochemical Corporation
Given that China Petrochemical Corporation engages in the same or similar businesses as Sinopec Corp. with regard to the exploration and production of overseas petroleum and natural gas, China Petrochemical Corporation hereby grants a 10-year option to Sinopec Corp. with the following provisions: (i) after a thorough analysis from political, economic and other perspectives, Sinopec Corp. is entitled to require China Petrochemical Corporation to sell its overseas oil and gas assets owned as of the date of the undertaking and still in its possession upon Sinopec Corp.’s exercise of the option to Sinopec Corp.; (ii) in relation to the overseas oil and gas assets acquired by China Petrochemical Corporation after the issuance of the undertaking, within 10 years of the completion of such acquisition, after a thorough analysis from political, economic and other perspectives, Sinopec Corp. is entitled to require China Petrochemical Corporation to sell these assets to Sinopec Corp.. China Petrochemical Corporation undertakes to transfer the assets as required by Sinopec Corp. under aforesaid items (i) and (ii) to Sinopec Corp., provided that the exercise of such option complies with applicable laws and regulations, contractual obligations and other procedural requirements.
10 years after April 29, 2014 or the date when Sinopec Group acquires the assets
Yes
Yes
 
 
11
 
The Third Quarterly Report for 2016
 
 
 
As of the end of the reporting period, Sinopec Corp. had no undertakings in respect of profits, asset injections or asset restructuring that had not been fulfilled, nor did Sinopec Corp. make any profit forecast in relation to any asset or project.

3.4
This quarterly results announcement is published in both Chinese and English languages. In the event of any discrepancies, the Chinese version shall prevail.


 
By Order of the Board
 
Chairman
 
Wang Yupu
 
27 October 2016


 
12
 
The Third Quarterly Report for 2016
 
 

4.
Appendix
 
4.1
Quarterly financial statements prepared under China Accounting Standards for Business Enterprises (“ASBE”)

Consolidated Balance Sheet
as at 30 September 2016

 Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
As at 30 September 2016
As at 31 December 2015
Current assets：
    
Cash at bank and on hand
86,383
69,666
Bills receivable
12,419
10,964
Accounts receivable
58,293
56,142
Prepayments
5,040
2,920
Other receivables
10,700
21,453
Inventories
141,790
145,608
Other current assets
24,370
26,904
Total current assets
338,995
333,657
Non-current assets：
    
Available-for-sale financial assets
11,097
10,964
Long-term equity investments
90,168
84,293
Fixed assets
714,847
733,449
Construction in progress
123,022
152,325
Intangible assets
82,007
81,086
Goodwill
6,324
6,271
Long-term deferred expenses
13,663
13,919
Deferred tax assets
7,183
7,469
Other non-current assets
25,842
23,835
Total non-current assets
1,074,153
1,113,611
Total assets
1,413,148
1,447,268
Current liabilities：
    
Short-term loans
41,581
74,729
Bills payable
4,457
3,566
Accounts payable
140,645
130,558
Advances from customers
93,757
92,688
Employee benefits payable
4,549
1,185
Taxes payable
33,717
32,492
Other payables
58,739
86,337
Short-term debentures payable
6,000
30,000
Non-current liabilities due within one year
24,552
11,277
Total current liabilities
407,997
462,832

 
13
 
The Third Quarterly Report for 2016
 
 
 
Non-current liabilities：
    
Long-term loans
66,561
56,493
Debentures payable
65,771
83,253
Provisions
35,819
33,186
Deferred tax liabilities
7,954
8,259
Other non-current liabilities
15,544
13,680
Total non-current liabilities
191,649
194,871
Total liabilities
599,646
657,703
Shareholders’ equity：
    
Share capital
121,071
121,071
Capital reserve
119,411
121,576
Other comprehensive income
 (3,800)
(7,984)
Specific reserve
1,476
612
Surplus reserves
196,640
196,640
Retained earnings
257,913
245,623
Total equity attributable to shareholders of the Company
692,711
677,538
Minority interests
120,791
112,027
Total shareholders’ equity
813,502
789,565
Total liabilities and shareholders’ equity
1,413,148
1,447,268
 
 
Wang Yupu
  
Dai Houliang
  
Wang Dehua
Chairman
  
Vice Chairman, President
  
Chief Financial Officer
(Legal representative)
        
 
 
14
 
The Third Quarterly Report for 2016
 
 
 
Balance Sheet
as at 30 September 2016

Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
As at 30 September 2016
As at 31 December 2015
Current assets：
    
Cash at bank and on hand
54,455
46,453
Bills receivable
400
540
Accounts receivable
19,090
29,512
Prepayments
1,754
1,296
Other receivables
66,548
64,620
Inventories
39,165
46,029
Other current assets
38,881
36,559
Total current assets
220,293
225,009
Non-current assets：
    
Available-for-sale financial assets
297
297
Long-term equity investments
237,937
219,230
Fixed assets
403,927
439,477
Construction in progress
51,046
72,763
Intangible assets
7,920
8,397
Long-term deferred expenses
2,107
2,154
Other non-current assets
12,008
11,959
Total non-current assets
715,242
754,277
Total assets
935,535
979,286
Current liabilities：
    
Short-term loans
15,033
32,517
Bills payable
2,484
1,852
Accounts payable
71,271
85,182
Advances from customers
2,753
3,151
Employee benefits payable
2,372
290
Taxes payable
20,194
20,832
Other payables
93,984
86,427
Short-term debentures payable
6,000
30,000
Non-current liabilities due within one year
23,086
5,352
Total current liabilities
237,177
265,603

 
15
 
The Third Quarterly Report for 2016
 
 
 
Non-current liabilities：
    
Long-term loans
62,712
54,526
Debentures payable
47,500
65,500
Provisions
31,442
28,968
Deferred tax liabilities
605
177
Other non-current liabilities
3,371
2,238
Total non-current liabilities
145,630
151,409
Total liabilities
382,807
417,012
Shareholders’ equity：
    
Share capital
121,071
121,071
Capital reserve
68,664
68,716
Other comprehensive income
552
(145)
Specific reserve
717
313
Surplus reserves
196,640
196,640
Retained earnings
165,084
175,679
Total shareholders’ equity
552,728
562,274
Total liabilities and shareholders’ equity
935,535
979,286
 
 
Wang Yupu
  
Dai Houliang
  
Wang Dehua
Chairman
  
Vice Chairman, President
  
Chief Financial Officer
(Legal representative)
        
 
 
16
 
The Third Quarterly Report for 2016
 
 
 
Consolidated Income Statement
for the nine-month periods ended 30 September 2016

Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
Three-month periods ended 30 September 2016
Three-month periods ended 30 September 2015
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
I. Total operating income
484,725
496,825
1,363,945
1,537,956
II.Total operating costs
469,450
492,883
1,319,899
1,499,329
Including: Operating costs
377,015
397,636
 1,042,208
 1,218,008
Sales taxes and surcharges
58,242
59,375
 171,073
 179,264
Selling and distribution expenses
12,143
11,783
 35,715
 34,187
General and administrative expenses
18,295
17,906
 56,711
 52,327
Financial expenses
1,163
4,581
 5,447
 7,705
Exploration expenses, including dry holes
2,487
1,480
 7,217
 7,511
Impairment losses
105
122
 1,528
 327
Add: Loss from changes in fair value
(230)
(136)
 (117)
 (25)
Investment income
1,859
268
 7,253
 4,807
III.  Operating profit
16,904
4,074
 51,182
 43,409
Add: Non-operating income
919
1,418
 2,276
 3,284
Less: Non-operating expenses
648
665
 1,523
 1,598
IV.  Profit before taxation
17,175
4,827
 51,935
 45,095
Less: Income tax expense
3,486
790
 11,865
 10,464
V.   Net profit
13,689
4,037
 40,070
 34,631
Attributable to:
        
Equity shareholders of the Company
9,916
1,437
 29,166
 25,893
Minority interests
3,773
2,600
 10,904
 8,738

 
17
 
The Third Quarterly Report for 2016
 
 
 
VI.  Earnings per share：
        
(i) Basic earnings per share (RMB Yuan)
0.082
0.011
0.241
0.214
(ii) Diluted earnings per share (RMB Yuan)
0.082
0.011
0.241
0.214
VII. Total other comprehensive income
(627)
4,187
2,193
5,542
Items that may be reclassified subsequently to profit or loss(after tax and reclassification adjustments):
        
Cash flow hedges
(1,011)
2,602
756
4,082
Available-for-sale financial assets
(8)
12
(41)
48
Share of other comprehensive income/(loss) of associates and jointly controlled entities
89
(27)
188
(145)
Foreign currency translation differences
303
1,600
1,290
1,557
VIII.Total comprehensive income
13,062
8,224
42,263
40,173
Attributable to:
　
　
　
　
Equity shareholders of the Company
9,117
4,743
 33,350
 31,006
Minority interests
3,945
3,481
 8,913
 9,167

 
Wang Yupu
  
Dai Houliang
  
Wang Dehua
Chairman
  
Vice Chairman, President
  
Chief Financial Officer
(Legal representative)
        
 
 
18
 
The Third Quarterly Report for 2016
 
 
 
Income Statement
for the nine-month periods ended 30 September 2016

Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
Three-month periods ended 30 September 2016
Three-month periods ended 30 September 2015
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
I.        Operating income
176,851
209,774
523,000
648,093
 Less: Operating costs
126,495
154,794
364,330
472,638
Sales taxes and surcharges
38,710
43,941
118,312
129,961
Selling and distribution expenses
443
655
1,747
1,896
General and administrative expenses
10,094
10,310
31,621
29,631
Financial expenses
754
1,524
2,819
5,024
Exploration expenses, including dry holes
2,487
1,476
7,217
7,486
Impairment losses
(11)
(2)
1,113
96
Add:  Gain/(Loss) from changes in fair value
-
9
-
(263)
Investment income
  1,939
2,257
10,689
7,236
II.      Operating profit
(182)
(658)
6,530
8,334
Add:  Non-operating income
308
999
1,075
2,100
Less: Non-operating expenses
221
251
690
722
III.    Profit before taxation
(95)
90
6,915
9,712
Less: Income tax expense
(171)
(804)
681
605
IV.    Net profit
76
894
6,234
9,107
V.     Total other comprehensive income
405
147
697
637
Items that may be reclassified subsequently to profit or loss (after tax and reclassification adjustments):
　
　
　
　
Cash flow hedges
335
222
642
713
Share of other comprehensive income/(loss) in associates
70
(75)
55
(76)
VI.    Total comprehensive income
481
1,041
6,931
9,744

 
Wang Yupu
  
Dai Houliang
  
Wang Dehua
Chairman
  
Vice Chairman, President
  
Chief Financial Officer
(Legal representative)
        
 
 
19
 
The Third Quarterly Report for 2016
 
 
 
Consolidated Cash Flow Statement
for the nine-month periods ended 30 September 2016

  Prepared by: China Petroleum & Chemical Corporation

 
Units: million     Currency: RMB     Type: unaudited
Items
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
I.     Cash flows from operating activities：
    
Cash received from sale of goods and rendering of services
1,615,777
 1,758,455
Refund of taxes and levies
 1,653
 2,485
Other cash received relating to operating activities
 62,036
 76,782
Sub-total of cash inflows
 1,679,466
 1,837,722
Cash paid for goods and services
 (1,171,618)
 (1,332,041)
Cash paid to and for employees
 (41,556)
 (38,174)
Payments of taxes and levies
 (251,394)
 (250,528)
Other cash paid relating to operating activities
 (83,198)
 (100,740)
Sub-total of cash outflows
 (1,547,766)
 (1,721,483)
Net cash flow from operating activities
 131,700
116,239
II.    Cash flows from investing activities：
    
Cash received from disposal of investments
 17,930
 1,253
Cash received from returns on investments
 2,806
 2,371
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
 375
 413
Net cash received from disposal of subsidiaries and other business entities
2,027
-
Other cash received relating to investing activities
 1,850
 4,707
Sub-total of cash inflows
24,988
 8,744
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets
(45,909)
 (71,392)
Cash paid for acquisition of investments
(15,197)
 (8,382)
Other cash paid relating to investing activities
(5,101)
 (3,104)
Sub-total of cash outflows
 (66,207)
 (82,878)
Net cash flow from investing activities
 (41,219)
 (74,134)

 
20
 
The Third Quarterly Report for 2016
 
 
 
III.  Cash flows from financing activities：
    
Cash received from capital contributions
202
 105,733
Including: Cash received from minority shareholders’ capital contributions to subsidiaries
202
 105,733
Cash received from borrowings
401,057
 863,620
Sub-total of cash inflows
401,259
 969,353
Cash repayments of borrowings
 (453,475)
 (933,811)
Cash paid for dividends, profits distribution or interest
 (26,352)
 (30,746)
Including: Subsidiaries’ cash payments for distribution of dividends or profits to minority shareholders
 (4,726)
 (756)
Sub-total of cash outflows
(479,827)
(964,557)
Net cash flow from financing activities
(78,568)
4,796
IV.   Effects of changes in foreign exchange rate
303
7
V.    Net increase in cash and cash equivalents
12,216
46,908
Add: Cash and cash equivalents at 1 January
68,933
9,355
VI.  Cash and cash equivalents at 30 September
81,149
56,263
 
 
Wang Yupu
  
Dai Houliang
  
Wang Dehua
Chairman
  
Vice Chairman, President
  
Chief Financial Officer
(Legal representative)
        
 
 
21
 
The Third Quarterly Report for 2016
 
 
 
Cash Flow Statement
 for the nine-month periods ended 30 September 2016

  Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
I.     Cash flows from operating activities：
    
Cash received from sale of goods and rendering of services
 605,835
750,466
Refund of taxes and levies
 999
1,750
Other cash received relating to operating activities
 46,776
52,793
Sub-total of cash inflows
 653,610
805,009
Cash paid for goods and services
 (350,443)
(506,489)
Cash paid to and for employees
 (23,498)
(24,195)
Payments of taxes and levies
 (155,934)
(164,251)
Other cash paid relating to operating activities
 (47,308)
(132,071)
Sub-total of cash outflows
 (577,183)
(827,006)
Net cash flow from operating activities
 76,427
(21,997)
II.    Cash flows from investing activities：
    
Cash received from disposal of investments
 24,733
138,514
Cash received from returns on investments
 14,696
5,400
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
 621
4,303
Net cash received from disposal of subsidiaries and other business entities
2,027
-
Other cash received relating to investing activities
 949
746
Sub-total of cash inflows
 43,026
148,963
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets
 (26,515)
(45,251)
Cash paid for acquisition of investments
 (32,755)
(15,217)
Other cash paid relating to investing activities
(130)
-
Sub-total of cash outflows
 (59,400)
(60,468)
Net cash flow from investing activities
 (16,374)
88,495
III.  Cash flows from financing activities：
    
Cash received from borrowings
152,920
192,992
Sub-total of cash inflows
152,920
192,992
Cash repayments of borrowings
(185,420)
(201,029)
Cash paid for dividends, profits distribution or interest
(19,681)
(29,185)
Sub-total of cash outflows
(205,101)
(230,214)
Net cash flow from financing activities
(52,181)
(37,222)
IV.   Net increase in cash and cash equivalents
7,872
29,276
Add: Cash and cash equivalents at 1 January
46,453
1,804
V.    Cash and cash equivalents at 30 September
54,325
31,080
 
 
Wang Yupu
  
Dai Houliang
  
Wang Dehua
Chairman
  
Vice Chairman, President
  
Chief Financial Officer
(Legal representative)
        
 
 
22
 
The Third Quarterly Report for 2016
 
 

Segment Reporting
for the nine-month periods ended 30 September 2016

Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
Income from principal operations
    
Exploration and production
    
External sales
34,544
43,736
Inter-segment sales
40,829
56,341
Subtotal
75,373
100,077
Refining
    
External sales
73,012
92,725
Inter-segment sales
537,839
617,926
Subtotal
610,851
710,651
Marketing and distribution
    
External sales
748,387
826,408
Inter-segment sales
2,185
2,093
Subtotal
750,572
828,501
Chemicals
    
External sales
197,109
211,218
Inter-segment sales
27,034
33,327
Subtotal
224,143
244,545
Corporate and others
    
External sales
275,824
335,357
Inter-segment sales
221,609
266,259
Subtotal
497,433
601,616
Elimination of inter-segment sales
(829,496)
(975,946)
Consolidated income from principal operations
1,328,876
1,509,444
Income from other operations
    
Exploration and production
5,111
5,152
Refining
4,023
3,497
Marketing and distribution
16,558
12,641
Chemicals
8,502
5,933
Corporate and others
875
1,289
Consolidated income from other operations
35,069
28,512
Consolidated operating income
1,363,945
1,537,956

 
23
 
The Third Quarterly Report for 2016
 
 
 
Operating profit/(loss)
    
By segment
    
Exploration and production
(30,900)
(4,332)
Refining
41,607
13,205
Marketing and distribution
23,690
20,742
        Chemicals
15,129
14,904
Corporate and others
1,395
831
Elimination
(1,428)
982
Total segment operating profit
49,493
46,332
Investment income/(loss)
    
Exploration and production
(449)
(569)
Refining
1112
498
Marketing and distribution
2,091
1,273
Chemicals
3,683
2,655
Corporate and others
816
950
Total segment investment income
7,253
4,807
Financial expenses
(5,447)
(7,705)
Loss from changes in fair value
(117)
(25)
Operating profit
51,182
43,409
Add: Non-operating income
2,276
3,284
Less: Non-operating expenses
1,523
1,598
Profit before taxation
51,935
45,095
 
 
24
 
The Third Quarterly Report for 2016
 
 

4.2
Quarterly financial statements prepared under International Financial Reporting Standards (“IFRS”)
 
Consolidated Income Statement
for the nine-month periods ended 30 September 2016

Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
Three-month periods ended 30 September 2016
Three-month periods ended 30 September 2015
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
Turnover and other operating revenues
        
Turnover
472,080
486,995
1,328,876
 1,509,444
Other operating revenues
12,645
9,830
35,069
 28,512
Subtotal
484,725
496,825
1,363,945
 1,537,956
Operating expenses
        
Purchased crude oil, products and operating supplies and expenses
(352,524)
(372,568)
(967,943)
(1,143,566)
Selling, general and administrative expenses
(15,605)
(16,931)
(48,661)
 (49,167)
Depreciation, depletion and amortization
(24,344)
(24,027)
(73,449)
 (70,322)
Exploration expenses, including dry holes
(2,487)
(1,480)
(7,217)
 (7,511)
Personnel expenses
(14,720)
(13,576)
(43,783)
 (40,295)
Taxes other than income tax
(58,242)
(59,375)
(171,073)
 (179,264)
Other operating (expense)/income, net
(481)
12
(389)
 1,545
Total operating expenses
(468,403)
(487,945)
(1,312,515)
 (1,488,580)
Operating profit
16,322
8,880
51,430
49,376
Finance costs
        
Interest expense
(2,614)
(1,827)
(7,778)
 (6,211)
Interest income
1,150
1,094
2,508
 2,191
Loss on embedded derivative component of the convertible bonds
-
-
-
 (259)
Foreign currency exchange gains/(losses), net
301
(3,848)
(177)
 (3,685)
Net finance costs
(1,163)
(4,581)
(5,447)
(7,964)
Investment income
108
38
206
 124
Share of profits from associates and joint ventures
2,204
753
6,803
 4,888
Profit before taxation
17,471
5,090
52,992
 46,424
Tax expense
(3,486)
(790)
(11,865)
(10,464)

 
25
 
The Third Quarterly Report for 2016
 
 
 
Profit for the period
13,985
4,300
41,127
35,960
Attributable to：
        
 Owners of the Company
10,188
1,652
30,107
27,075
 Non-controlling interests
3,797
2,648
11,020
8,885
Profit for the period
13,985
4,300
41,127
35,960
Earnings per share
        
Basic earnings per share (RMB Yuan)
0.084
0.013
0.249
0.224
Diluted earnings per share (RMB Yuan)
0.084
0.013
0.249
0.224

 
26
 
The Third Quarterly Report for 2016
 
 
 
Consolidated Statement of Comprehensive Income
for the nine-month periods ended 30 September 2016

Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
Three-month periods ended 30 September 2016
Three-month periods ended 30 September 2015
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
Profit for the period
13,985
4,300
41,127
35,960
Total other comprehensive income
(627)
4,187
2,193
5,542
Items that may be reclassified subsequently to profit or loss(after tax and reclassification adjustments):
        
Cash flow hedges
(1,011)
2,602
756
4,082
Available-for-sale securities
(8)
12
(41)
48
Share of other comprehensive income/(loss) of associates and joint ventures
89
(27)
188
(145)
Foreign currency translation differences
303
1,600
1,290
1,557
Total comprehensive income
13,358
8,487
43,320
41,502
Attributable to:
        
Owners of the Company
9,389
4,942
34,291
32,188
Non-controlling interests
3,969
3,515
9,029
9,314


 
27
 
The Third Quarterly Report for 2016
 
 


Consolidated Balance Sheet
as at 30 September 2016

Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
As at 30 September 2016
As at 31 December 2015
Non-current assets：
    
Property, plant and equipment, net
714,847
733,449
Construction in progress
123,022
152,325
Goodwill
6,324
6,271
Interest in associates
42,868
40,712
Interest in joint ventures
47,300
43,581
Available-for-sale financial assets
11,097
10,964
Deferred tax assets
7,183
7,469
Lease prepayments
52,777
51,049
Long-term prepayments and other non-current assets
68,735
67,791
Total non-current assets
1,074,153
1,113,611
Current assets:
    
Cash and cash equivalents
81,149
68,933
Time deposits with financial institutions
5,234
733
Trade accounts receivable
58,293
56,142
Bills receivable
12,419
10,964
Inventories
141,790
145,608
Prepaid expenses and other current assets
40,110
51,277
Total current assets
338,995
333,657
Current liabilities：
    
Short-term debts
54,123
71,517
Loans from Sinopec Group Company and fellow subsidiaries
17,257
43,929
Trade accounts payable
140,645
130,558
Bills payable
4,457
3,566
Accrued expenses and other payables
187,840
212,214
Income tax payable
3,675
1,048
Total current liabilities
407,997
462,832
Net current liabilities
(69,002)
(129,175)
Total assets less current liabilities
1,005,151
984,436

 
28
 
The Third Quarterly Report for 2016
 
 
 
Non-current liabilities：
    
Long-term debts
88,232
95,446
Loans from Sinopec Group Company and fellow subsidiaries
44,100
44,300
Deferred tax liabilities
7,954
8,259
Provisions
35,819
33,186
Other long-term liabilities
16,863
15,084
Total non-current liabilities
192,968
196,275
Total net assets
812,183
788,161
Equity：
    
Share capital
121,071
121,071
Reserves
570,376
555,126
Total equity attributable to owners of the Company
691,447
676,197
Non-controlling interests
120,736
111,964
Total equity
812,183
788,161
 
 
29
 
The Third Quarterly Report for 2016
 
 
 
Consolidated Statement of Cash Flow
for the nine-month periods ended 30 September 2016

Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
Net cash generated from operating activities(a)
131,700
116,239
Investing activities
    
Capital expenditure
 (44,642)
(67,824)
Exploratory wells expenditure
 (1,267)
(3,568)
Purchase of investments, investments in fellow subsidiaries, investments in associates and investments in joint ventures
 (15,197)
(8,382)
Proceeds from disposal of investments and investments in associates
 19,957
906
Proceeds from disposal of property, plant, equipment and other non-current assets
 375
413
(Increase)/decrease in time deposits with maturities over three months
 (4,501)
82
Interest received
 1,250
1,868
Investment and dividend income received
 2,806
2,371
Net cash used in investing activities
(41,219)
(74,134)
Financing activities
    
Proceeds from bank and other loans
 401,057
863,620
Repayments of bank and other loans
 (453,475)
(933,811)
Contributions to subsidiaries from non-controlling interests
202
105,733
Dividends paid by the Company
(16,876)
(24,214)
Distributions by subsidiaries to non-controlling interests
(4,726)
(756)
Interest paid
(4,750)
(5,776)
Net cash (used in)/generated from financing activities
(78,568)
4,796
Net increase in cash and cash equivalents
 11,913
46,901
Cash and cash equivalents at 1 January
 68,933
9,355
Effect of foreign currency exchange rate changes
 303
7
Cash and cash equivalents at 30 September
 81,149
56,263
 
 
30
 
The Third Quarterly Report for 2016
 
 
 
Note to consolidated statement of Cash Flow

 
(a)
Reconciliation of profit before taxation to net cash generated from operating activities
 
Items
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
Operating activities
    
Profit before taxation
52,992
46,424
Adjustments for:
    
Depreciation, depletion and amortisation
73,449
70,322
Dry hole costs written off
5,615
5,277
Share of profits from associates and joint ventures
(6,803)
(4,888)
Investment income
(206)
(124)
Interest income
(2,508)
(2,191)
Interest expense
7,778
6,211
Loss on foreign currency exchange rate changes and derivative financial instruments
1,820
9,206
Loss on disposal of property, plant, equipment and other non-currents assets, net
105
152
Impairment losses on assets
1,528
327
Loss on embedded derivative component of the convertible bonds
-
259
Operating profit before change of operating capital
133,770
130,975
Accounts receivable and other current assets
487
32,023
Inventories
3,553
33,159
Accounts payable and other current liabilities
10,255
(69,992)
Subtotal
148,065
126,165
Income tax paid
(16,365)
(9,926)
Net cash generated from operating activities
131,700
116,239
 
 
31
 
The Third Quarterly Report for 2016
 
 
 
Segment Reporting
for the nine-month periods ended 30 September 2016

Prepared by: China Petroleum & Chemical Corporation

Units: million     Currency: RMB     Type: unaudited
Items
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
Turnover
    
Exploration and production
    
External sales
34,544
43,736
Inter-segment sales
40,829
56,341
Subtotal
75,373
100,077
Refining
    
External sales
73,012
92,725
Inter-segment sales
537,839
617,926
Subtotal
610,851
710,651
Marketing and distribution
    
External sales
748,387
826,408
Inter-segment sales
2,185
2,093
Subtotal
750,572
828,501
Chemicals
    
External sales
197,109
211,218
Inter-segment sales
27,034
33,327
Subtotal
224,143
244,545
Corporate and others
    
External sales
275,824
335,357
Inter-segment sales
221,609
266,259
Subtotal
497,433
601,616
Elimination of inter-segment sales
(829,496)
(975,946)
Turnover
1,328,876
1,509,444
Other operating revenues
    
Exploration and production
5,111
5,152
Refining
4,023
3,497
Marketing and distribution
16,558
12,641
Chemicals
8,502
5,933
Corporate and others
875
1,289
Other operating revenues
35,069
28,512
Turnover and other operating revenues
1,363,945
1,537,956

 
32
 
The Third Quarterly Report for 2016
 
 
 
Result
    
Operating profit/(loss)
    
By segment
    
Exploration and production
(30,416)
(3,444)
Refining
42,392
14,905
Marketing and distribution
24,273
21,500
Chemicals
15,452
14,908
Corporate and others
1,157
525
Elimination
(1,428)
982
Total segment operating profit
51,430
49,376
Share of profits from associates and joint ventures
    
Exploration and production
(472)
(566)
Refining
1,119
487
Marketing and distribution
1,496
987
Chemicals
3,656
2,599
Corporate and others
1,003
1,381
Aggregate share of profits from associates and joint ventures
6,802
4,888
Investment income
    
Exploration and production
23
(3)
Refining
(7)
(26)
Marketing and distribution
70
80
Chemicals
27
56
Corporate and others
94
17
Aggregate investment income
207
124
Net finance costs
(5,447)
(7,964)
Profit before taxation
52,992
46,424
 
 
33
 
The Third Quarterly Report for 2016
 
 
 
4.3
Differences between Financial Statements prepared in accordance with the accounting policies complying with ASBE and IFRS (unaudited)

Other than the differences in the classifications of certain financial statements captions and the accounting for the items described below, there are no material differences between the Group’s consolidated financial statements prepared in accordance with the accounting policies complying with ASBE and IFRS. The reconciliation presented below is included as supplemental information, is not required as part of the basic financial statements and does not include differences related to classification, presentation or disclosures. Such information has not been subject to independent audit or review. The major differences are:

(i) Government Grants

Under ASBE, grants from the government are credited to capital reserve if required by relevant governmental regulations. Under IFRS, government grants relating to the purchase of fixed assets are recognised as deferred income and are transferred to the income statement over the useful life
of these assets.

(ii) Safety Production Fund

Under ASBE, safety production fund should be recognised in profit or loss with a corresponding increase in reserve according to PRC regulations. Such reserve is reduced for expenses incurred for safety production purposes or, when safety production related fixed assets are purchased, is reduced by the purchased cost with a corresponding increase in the accumulated depreciation. Such fixed assets are not depreciated thereafter. Under IFRS, payments are expensed as incurred, or capitalised as fixed assets and depreciated according to applicable depreciation methods.

Effects of major differences between the net profit under ASBE and the profit for the period under IFRS are analysed as follows:

Prepared by: China Petroleum & Chemical Corporation
Units: million     Currency: RMB     Type: unaudited
Items
Nine-month periods ended 30 September 2016
Nine-month periods ended 30 September 2015
Net profit under ASBE
40,070
34,631
Adjustments:
    
Government grants (i)
85
85
Safety production fund (ii)
972
1,244
Profit for the period under IFRS
41,127
35,960

Effects of major differences between the shareholders’ equity under ASBE and the total equity
under IFRS are analysed as follows:

Items
At 30 September 2016
At 31 December 2015
Shareholders’ equity under ASBE
813,502
789,565
Adjustments:
    
Government grants(i)
(1,319)
(1,404)
Safety production fund (ii)
-
-
Total equity under IFRS
812,183
788,161
 
 
34
 
 
SIGNATURE



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.



China Petroleum & Chemical Corporation



By: /s/ Huang Wensheng

Name: Huang Wensheng

Title: Vice President and Secretary to the Board of Directors



Date: October 28, 2016