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 April 2023

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                   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     ✔   

(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 first quarterly report for 2023 of China Petroleum & Chemical Corporation (the “Registrant”), made by the Registrant on April 27, 2023.







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.

(a joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 00386)

Overseas Regulatory Announcement
China Petroleum & Chemical Corporation
The First Quarterly Report for 2023
This announcement is made pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong).

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

Beijing, the PRC,
27 April 2023

As of the date of this announcement, directors of the Company are: Ma Yongsheng*, Zhao Dong*, Yu Baocai#, Li Yonglin#, Liu Hongbin#, Cai Hongbin+, Ng, Kar Ling Johnny+, Shi Dan+ and Bi Mingjian+.

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









China Petroleum & Chemical Corporation The First Quarterly Report for 2023














27 April 2023 Beijing, China



Important notice

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

This first quarterly report for 2023 was approved at the 16th meeting of the Eighth Session of the Board of Directors of Sinopec Corp. All directors attended this meeting.

Mr. Ma Yongsheng, Chairman, Mr. Yu Baocai, President, Ms. Shou Donghua, Chief Financial Officer and Head of the Financial Department of Sinopec Corp. warrant the authenticity, accuracy and completeness of the financial statements contained in this quarterly report.

The financial statements in this quarterly report were not audited.

2



1.
Principal financial data
1.1
Principal financial data and indicators
1.1.1
Principal financial data and indicators prepared in accordance with China Accounting Standards for Business Enterprises (CASs)
RMB million
Items
As of 31 March 2023
As of 31 December 2022 (before adjustment)
As of 31 December 2022 (adjusted)
Change (%)
Total assets
2,011,153
1,948,640
1,951,121
3.08
Total equity attributable to equity shareholders of the Company
806,963
785,577
788,471
2.35

RMB million
 
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022 (before adjustment)
Three-month period ended 31 March 2022 (adjusted)
Change (%)
Operating income
791,331
771,386
771,386
2.59
Net profit attributable to equity shareholders of the Company
20,102
22,605
22,800
(11.83)
Net profit attributable to equity shareholders of the Company excluding extraordinary gains and losses
19,716
22,450
22,645
(12.93)
Net cash flow used in operating activities
(18,397)
(46,781)
(46,781)
-
Basic earnings per share (RMB)
0.168
0.187
0.188
(10.64)
Diluted earnings per share (RMB)
0.168
0.187
0.188
(10.64)
Weighted average return on net assets (%)
2.52
2.88
2.90
(0.38) percentage points
Note: In accordance with the requirements of both the Interpretation of Accounting Standards for Business Enterprises No. 16 and the Accounting Standard for Business Enterprises No. 18Income Taxes, the Company retrospectively adjusted the relevant items of the financial statements.

1.1.2
Extraordinary items
RMB million
Extraordinary items
Three-month period ended 31 March 2023
(income)/expenses
Net gain on disposal of non-current assets
(78)
Donations
4
Government grants
(676)
Gains on holding and disposal of various investments
(181)
Other extraordinary expenses, net
257
Subtotal
(674)
Tax effect
182
Total
(492)
Attributable to:
 
Equity shareholders of the Company
(386)
Minority interests
(106)

3



1.1.3
Principal financial data and indicators prepared in accordance with International Financial Reporting Standards (IFRS)
RMB million
Items
As of 31 March 2023
As of 31 December 2022 (before adjustment)
As of 31 December 2022 (adjusted)
Change (%)
Total assets
2,011,153
1,948,640
1,951,121
3.08
Total equity attributable to shareholders of the Company
806,099
784,706
787,600
2.35
RMB: million
 
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022 (before adjustment)
Three-month period ended 31 March 2022 (adjusted)
Change (%)
Revenue
791,331
771,386
771,386
2.59
Operating profit
31,090
32,960
32,960
(5.67)
Net profit attributable to shareholders of the Company
20,740
23,338
23,533
(11.87)
Net cash flow used in operating activities
(18,397)
(46,781)
(46,781)
-
Basic earnings per share (RMB)
0.173
0.193
0.194
(10.82)
Diluted earnings per share (RMB)
0.173
0.193
0.194
(10.82)
Return on net assets (%)
2.57
2.94
2.96
(0.39) percentage points
Note: In accordance with the requirements of the International Accounting Standards 12, the Company retrospectively adjusted the relevant items of the financial statements.

1.2
Significant changes in major items contained in the consolidated financial statements prepared in accordance with CASs.
Items of Consolidated Balance Sheet
As of 31 March 2023
As of 31 December 2022
Increase/(Decrease)
Main reasons for changes
Amount
Percentage
RMB million
RMB million
RMB million
%
Accounts receivable
70,122
46,364
23,758
51.24
Increase in receivables of crude oil trading.
Prepayments
10,662
7,956
2,706
34.01
Increase in prepayments of crude oil procurement.
Short-term loans
84,983
21,313
63,670
298.74
Increase in short-term loans for supplement of liquidity.
Long-term loans
129,943
94,964
34,979
36.83
Increase in long-term loans to fund capital expenditures.

4



Items of Consolidated Balance Sheet
As of 31 March 2023
As of 31 December 2022
Increase/(Decrease)
Main reasons for changes
Amount
Percentage
RMB million
RMB million
RMB million
%
Other comprehensive income
799
3,072
(2,273)
(73.99)
Impact of changes in the translation difference and gains and losses of hedging business.

Items of Consolidated Income Statement
For three-month period ended 31 March
Increase/(Decrease)
Main reasons for changes
2023
2022
Amount
Percentage
RMB Million
RMB Million
RMB Million
%
Other income
1,977
492
1,485
301.83
Increase in the refund of value-added tax.
Investment income/(loss)
1,493
(1,662)
3,155
-
Decrease in investment income of associates and joint ventures and the impact of gains and losses of derivative financial instruments.
(Losses) from changes in fair value
(244)
(6,937)
6,693
-
Impact of floating gains and losses of derivative financial instruments

Items of Consolidated Cash Flow Statement
For three-month period ended 31 March
Increase/(Decrease)
Main reasons for changes
2023
2022
Amount
Percentage
RMB million
RMB million
RMB million
%
Payments of taxes and levies
(73,344)
(122,520)
(49,176)
-
The taxes deferred from the fourth quarter of 2021 was paid in the first quarter of previous year, and no such matter in reporting period.
Cash received from returns on investments
407
1,095
(688)
(62.83)
Decreased in cash dividends received from joint ventures year- on-year.
Other cash received relating to investing activities
5,995
14,689
(8,694)
(59.19)
Impact of change in time deposits with maturities over three months.
Other cash paid relating to investing activities
(27,824)
(10,831)
16,993
-
Cash paid for acquisition of investments
(2,334)
(5,946)
(3,612)
-
Decreased in capital injection paid for subsidiaries year-on-year.
Net cash paid for the acquisition of subsidiaries and other business entities
-
(1,562)
(1,562)
-
The balance of asset acquisition was paid in the same time period last year, and no such matter in reporting period.

5



Items of Consolidated Cash Flow Statement
For three-month period ended 31 March
Increase/(Decrease)
Main reasons for changes
2023
2022
Amount
Percentage
RMB million
RMB million
RMB million
%
Cash received from capital contributions
88
779
(691)
(88.70)
Decreased in capital injection received from minority shareholders year-on-year.
Cash received from borrowings
228,360
138,034
90,326
65.44
Increase in borrowings for supplement of liquidity and project funds.
Cash repayments of borrowings
(139,146)
(73,648)
65,498
-
Due to the increase of matured borrowings

2.
Shareholders information
Total number of shareholders and top ten shareholders at the end of the reporting period
Total number of shareholders at the end of the reporting period
Total number of shareholders was 428,736, including 423,202 holders of domestic A shares and 5,534 holders of overseas H shares.
Top ten shareholders
Name of shareholder
Total number of shares held
Percentage (%)
Number of shares subject to pledge or lock-ups
Nature of shareholder
China Petrochemical Corporation
80,572,167,393
67.20
0
State-owned share
HKSCC (Nominees) Limited
24,635,678,771
20.55
Unknown
H share
中国证券金融股份有限公司
2,325,374,407
1.94
0
A share
中国石油天然气集团有限公司
2,165,749,530
1.81
0
A share
香港中央结算有限公司
1,354,513,995
1.13
0
A share
中国人寿保险股份有限公司-传统-普通保险产品-005L-CT001 沪
365,490,965
0.30
0
A share
中央汇金资产管理有限责任公司
315,223,600
0.26
0
A share
国信证券股份有限公司
235,109,414
0.20
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
105,367,876
0.09
0
A share
谌贺飞
93,611,700
0.08
0
A share
Note: Sinopec Century Bright Capital Investment Limited, overseas wholly-owned subsidiary of China Petrochemical Corporation, holds 767,916,000 H shares, accounting for 0.64% of the total issued share capital of Sinopec Corp. Those shareholdings were included in the total number of the shares held by HKSCC (Nominees) Limited.

Statement on the connected relationship or acting in concert among the aforementioned shareholders: Sinopec Corp. is not aware of any connected relationship or acting in concert among or between the above-mentioned top ten shareholders.


6


3.
Review of operating results
In the first quarter of 2023, China’s economy improved with gross domestic product (GDP) up by 4.5% year on year. The international crude oil prices fluctuated in a wide range and the spot price of Platt’s Brent for the first quarter averaged USD81.27 per barrel, down by 19.7% year on year. The domestic demand for refined oil products rebounded rapidly, demand for natural gas maintained growth year on year, and demand for chemical products recovered.

The Company seized the favorable market opportunity, optimized the whole business chain, strengthened the coordination of production and marketing, made great efforts to expand sales, and achieved good performance. In accordance with CASs, net profit attributable to equity shareholders of the Company was RMB 20.102 billion in the first quarter of 2023. In accordance with IFRS, net profit attributable to shareholders of the Company was RMB 20.740 billion in the first quarter of 2023.

Exploration and Production: The Company intensified efforts in high quality exploration, expanded the scale of profitable production capacity, and made positive progress in maintaining oil production, increasing gas output and reducing cost. In exploration, we focused on expanding resources, increasing reserve and obtaining more exploration licenses, strengthened risk exploration in new regions and areas, and made important breakthroughs of oil and gas exploration in Shunbei, Chuanbei, and Jiyang depression. In development, we accelerated the capacity building of Shunbei and Tahe oilfields, strengthened fine-tuned development of mature oil fields, and sped up capacity building of natural gas in Western Sichuan and Southeast Sichuan. We also optimized the resources structure of LNG to reduce procurement costs, strengthened operation optimization of natural gas business, achieving a constant improvement in the profitability of whole natural gas business chain. In the first quarter, the Company’s oil and gas production reached 124.6 million barrels of oil equivalent, up by 2.6% year on year, with natural gas production reaching 330.47 billion cubic feet, up by 5.3% year on year. The exploration and production segment realised an earnings before interest and tax (EBIT) of RMB 13.357 billion.
Exploration and Production
Unit
Three-month period ended 31 March
Changes
2023
2022
(%)
Oil and gas production
million boe
124.60
121.41
2.6
Crude oil production
million barrels
69.49
69.07
0.6
China
million barrels
61.86
61.60
0.4
Overseas
million barrels
7.63
7.47
2.1
Natural gas production
billion cubic feet
330.47
313.94
5.3
Realised crude oil price
USD/barrel
75.21
89.02
(15.5)
Realised natural gas price
USD/thousand cubic feet
8.70
8.14
6.9
Conversion:
For domestic production of crude oil, 1 tonne = 7.10 barrels. For overseas production of crude oil, 1 tonne = 7.25 barrels. For production of natural gas, 1 cubic meter = 35.31 cubic feet.

Refining: The Company actively addressed the market changes, vigorously optimized production operation to maximize the overall profits along the business chain. Closely following market changes,



7


we maintained high utilisation rate. We flexibly adjusted the procurement strategies to reduce procurement costs. We optimized the product mix and increased the exports of refined oil products. We also accelerated the construction of world-class refining bases and advanced with structural adjustment projects in an orderly manner. In the first quarter, the Company processed 62.24 million tonnes of crude oil, yielding 37.30 million tonnes of refined oil products. The refining segment realised EBIT of RMB 10.459 billion.

Refining
Unit
Three-month period ended 31 March
Changes (%)
2023
2022
Refinery throughput
million tonnes
62.24
64.19
(3.0)
Gasoline, diesel and kerosene production
million tonnes
37.30
37.36
(0.2)
Gasoline
million tonnes
15.16
16.48
(8.0)
Diesel
million tonnes
15.58
15.72
(0.9)
Kerosene
million tonnes
6.56
5.16
27.1
Light chemical feedstock production
million tonnes
10.61
11.79
(10.0)
Light product yield
%
74.82
74.48
0.34
percentage points
Refining yield
%
94.88
95.26
(0.38)
percentage points

Note: Including 100% production of domestic joint ventures.

Marketing and Distribution: The Company seized the favorable opportunity arising from the rapid recovery of demand, fully leveraged the advantages of integrated business and marketing network, strengthened resources coordination, made every effort to expand sales volume, and achieved significant improvement of the sales volume and profits. We optimised the sales network of refined oil products, made continuous efforts for the transition to an integrated energy service provider of Petro-Gas-Hydrogen-Power-Services. We continued to improve the quality and profitability for the non-fuel business. In the first quarter, total sales volume of refined oil products was 56.16 million tonnes, up by 10.1% year on year. The marketing and distribution segment realised EBIT of RMB
8.475 billion.
Marketing and Distribution
Unit
Three-month period ended 31 March
Changes (%)
2023
2022
Total sales volume of refined oil products
million tonnes
56.16
51.02
10.1
Total domestic sales volume of refined oil products
million tonnes
44.57
41.06
8.5
Retail
million tonnes
29.36
27.34
7.4
Direct sales & Distribution
million tonnes
15.21
13.72
10.9
Annualized average throughput per station
tonnes
3,802
3,559
6.8
Note: The total sales volume of refined oil products includes the amount of trading volume.

Chemicals: Facing severe challenges resulting from the concentrated release of chemical capacity and fierce competition, the Company closely followed the market demand, optimised the structure of feedstock, facilities and products with a profit-driven orientation, maintained high



8


utilisation rate in profitable facilities, increased production of high value-added products such as PV- grade EVA and polybutadiene rubber, and reduced products with no marginal contribution. We actively promoted the construction of advanced capacity. In the first quarter, the ethylene production was 3.347 million tonnes, and the total chemicals sales volume was 20.69 million tonnes, up by 0.2% year on year. The chemicals segment realised EBIT of RMB -3.022 billion.
Chemicals
Unit
Three-month period ended 31 March
Changes (%)
2023
2022
Ethylene
thousand tonnes
3,347
3,606
(7.2)
Synthetic resin
thousand tonnes
4,816
4,867
(1.0)
Synthetic rubber
thousand tonnes
349
353
(1.1)
Monomers and polymers for synthetic fibre
thousand tonnes
2,034
2,491
(18.3)
Synthetic fibre
thousand tonnes
258
286
(9.8)
Note: Including 100% production of domestic joint ventures.

Capital expenditure: In the first quarter, focusing on quality and return of investment, the Company continuously optimised its investment projects, with total capital expenditures of RMB 23.40 billion. The capital expenditures of the exploration and production segment were RMB 14.98 billion, mainly used for the crude oil and gas production capacity construction in Shunbei, Tahe, Western Sichuan and Southeast Sichuan, and construction of the Shengli Shale Oil National Demonstration Zone and storage and transportation facilities of Shandong LNG. The capital expenditures of the refining segment were RMB 4.22 billion, mainly used for the expansion of Zhenhai refinery and structural adjustment of Anqing and Yangzi refineries. The capital expenditures of the marketing and distribution segment were RMB 0.78 billion, mainly used for renovation of the existing stations. The capital expenditures of the chemicals segment were RMB 3.27 billion, mainly used for ethylene projects in Tianjin Nangang and Hainan, Yizheng PTA project, caprolactam relocation project in Baling, and new material projects in Zhenhai and Tianjin, etc. The capital expenditures of the corporate and others were RMB 0.15 billion, mainly used for information technology projects.


This report is published in both Chinese and English languages. In the event of any inconsistency between the two versions, the Chinese version shall prevail.

 
By Order of the Board
 
Ma Yongsheng
 
Chairman
 
27 April 2023


9



4
Appendix
4.1
Quarterly financial statements prepared under China Accounting Standards for Business Enterprises (CASs)

Consolidated Balance Sheet
As at 31 March 2023
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
At 31 March 2023
At 31 December 2022
Current assets:
   
Cash at bank and on hand
175,582
145,052
Financial assets held for trading
2
2
Derivative financial assets
15,338
19,335
Accounts receivable
70,122
46,364
Receivables financing
3,908
3,507
Prepayments
10,662
7,956
Other receivables
25,194
27,009
Inventories
254,077
244,241
Other current assets
29,884
29,674
Total current assets
584,769
523,140
Non-current assets:
   
Long-term equity investments
236,178
233,941
Other equity instrument investments
728
730
Fixed assets
631,001
630,758
Construction in progress
193,840
196,045
Right-of-use assets
177,616
178,359
Intangible assets
120,737
120,694
Goodwill
6,446
6,464
Long-term deferred expenses
12,031
12,034
Deferred tax assets
22,400
22,433
Other non-current assets
25,407
26,523
Total non-current assets
1,426,384
1,427,981
Total assets
2,011,153
1,951,121


10



Consolidated Balance Sheet (Continued)
Current liabilities:
   
Short-term loans
84,983
21,313
Derivative financial liabilities
8,921
7,313
Bills payable
12,398
10,782
Accounts payable
228,476
258,642
Contract liabilities
123,326
125,444
Employee benefits payable
17,363
13,617
Taxes payable
33,937
28,379
Other payables
90,722
119,892
Non-current liabilities due within one year
55,492
62,844
Other current liabilities
15,285
19,159
Total current liabilities
670,903
667,385
Non-current liabilities:
   
Long-term loans
129,943
94,964
Debentures payable
12,955
12,997
Lease liabilities
166,608
166,407
Provisions
48,086
47,587
Deferred tax liabilities
7,875
7,256
Other non-current liabilities
14,570
14,068
Total non-current liabilities
380,037
343,279
Total liabilities
1,050,940
1,010,664
Shareholders’ equity:
   
Share capital
119,896
119,896
Capital reserve
118,908
118,875
Other comprehensive income
799
3,072
Specific reserve
3,443
2,813
Surplus reserves
218,009
218,009
Retained earnings
345,908
325,806
Total equity attributable to shareholders of the Company
806,963
788,471
Minority interests
153,250
151,986
Total shareholders’ equity
960,213
940,457
Total liabilities and shareholders’ equity
2,011,153
1,951,121


Ma Yongsheng
Yu Baocai
Shou Donghua
Chairman
President
Chief Financial Officer
(Legal representative)
   


11



Balance Sheet
As at 31 March 2023
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
At 31 March 2023
At 31 December 2022
Current assets:
   
Cash at bank and on hand
80,622
54,578
Financial assets held for trading
2
2
Derivative financial assets
398
3,892
Accounts receivable
25,577
33,841
Receivables financing
805
703
Prepayments
3,958
4,461
Other receivables
44,560
38,517
Inventories
69,280
70,376
Other current assets
19,587
21,260
Total current assets
244,789
227,630
Non-current assets:
   
Long-term equity investments
387,824
382,879
Other equity instrument investments
201
201
Fixed assets
293,010
296,530
Construction in progress
85,514
81,501
Right-of-use assets
90,567
91,549
Intangible assets
8,384
8,095
Long-term deferred expenses
3,999
4,183
Deferred tax assets
9,391
9,487
Other non-current assets
40,885
41,365
Total non-current assets
919,775
915,790
Total assets
1,164,564
1,143,420
Current liabilities
   
Short-term loans
58,970
4,010
Derivative financial liabilities
2,498
4,299
Bills payable
6,502
4,038
Accounts payable
90,208
107,105
Contract liabilities
8,059
9,769
Employee benefits payable
10,617
8,467
Taxes payable
17,371
12,044
Other payables
197,831
247,480
Non-current liabilities due within one year
30,811
39,990
Other current liabilities
688
1,002
Total current liabilities
423,555
438,204


12



Balance Sheet (Continued)
Non-current liabilities
   
Long-term loans
84,865
56,755
Debentures payable
9,538
9,537
Lease liabilities
91,169
91,878
Provisions
38,825
38,298
Other non-current liabilities
2,027
2,121
Total non-current liabilities
226,424
198,589
Total liabilities
649,979
636,793
Shareholders’ equity
   
Share capital
119,896
119,896
Capital reserve
63,631
63,628
Other comprehensive income
(1,395)
827
Specific reserve
2,106
1,745
Surplus reserves
218,009
218,009
Retained earnings
112,338
102,522
Total shareholders’ equity
514,585
506,627
Total liabilities and shareholders’ equity
1,164,564
1,143,420


Ma Yongsheng
Yu Baocai
Shou Donghua
Chairman
President
Chief Financial Officer
(Legal representative)
   


13



Consolidated Income Statement
For the three-month period ended 31 March 2023
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
I. Total operating income
791,331
771,386
II. Total operating costs
764,763
729,326
Including:  Operating costs
666,004
622,875
Taxes and surcharges
62,707
71,186
Selling and distribution expenses
14,372
14,180
General and administrative expenses
13,172
13,091
Research and development expenses
2,841
2,706
Financial expenses
2,539
2,305
Including: Interest expenses
5,604
3,743
Interest income
2,670
1,387
Exploration expenses, including dry holes
3,128
2,983
Add:  Other income
1,977
492
Investment income /(loss)
1,493
(1,662)
Including: Income from investment in associates and joint ventures
1,223
3,619
Losses from changes in fair value
(244)
(6,937)
Credit impairment losses
(54)
(51)
Impairment losses
(414)
(201)
Asset disposal gains
78
76
III. Operating profit
29,404
33,777
Add: Non-operating income
244
249
Less: Non-operating expenses
456
541
IV. Profit before taxation
29,192
33,485
Less: Income tax expense
6,328
6,795
V. Net profit
22,864
26,690
Classification by going concern:
   
(i) Continuous operating net profit
22,864
26,690
(ii) Termination of net profit
-
-
Classification by ownership:
   
(i) Equity shareholders of the Company
20,102
22,800
(ii) Minority interests
2,762
3,890


14



Consolidated Income Statement (Continued)
VI. Total other comprehensive income
(1,219)
2,500
Items that may not be reclassified subsequently to profit or loss:
   
Changes in fair value of other equity instrument investments
1
-
Items that may be reclassified subsequently to profit or loss:
   
Other comprehensive income that can be converted into profit or loss under the equity method
(326)
(768)
Cost of hedging reserve
-
(630)
Cash flow hedges
515
4,556
Foreign currency translation differences
(1,409)
(658)
VII. Total comprehensive income
21,645
29,190
Equity shareholders of the Company
19,016
25,689
Minority interests
2,629
3,501
VIII. Earnings per share:
   
(i) Basic earnings per share (RMB/Share)
0.168
0.188
(ii) Diluted earnings per share (RMB/Share)
0.168
0.188


Ma Yongsheng
Yu Baocai
Shou Donghua
Chairman
President
Chief Financial Officer
(Legal representative)
   


15



Income Statement
For the three-month period ended 31 March 2023
Prepared by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
I. Operating income
303,400
318,615
Less:  Operating costs
245,360
255,660
Taxes and surcharges
38,018
44,178
Selling and distribution expenses
374
413
General and administrative expenses
5,718
5,824
Research and development costs
2,568
2,616
Financial expenses
2,924
2,568
Including: Interest expenses
4,461
3,370
Interest income
1,561
805
Exploration expenses, including dry holes
2,755
2,635
Add:  Other income
1,543
291
Investment income
4,314
2,651
Including: Income from investment in associates and joint ventures
1,012
1,356
Gains/(losses) from changes in fair value
227
(179)
Credit impairment losses
(4)
(8)
Impairment reversals/(losses)
85
(1)
Asset disposal gains
1
120
II. Operating profit
11,849
7,595
Add: Non-operating income
91
50
Less: Non-operating expenses
261
347
III. Profit before taxation
11,679
7,298
Less: Income tax expense
1,863
1,303
IV. Net profit
9,816
5,995
(i) Continuous operating net profit
9,816
5,995
(ii) Termination of net profit
-
-
V. Total other comprehensive income
(1,592)
1,558
Items that may be reclassified subsequently to profit or loss
   
Other comprehensive income that can be converted into profit or loss under the equity method
(56)
112
Cash flow hedges reserve
(1,536)
1,446
VI. Total comprehensive income
8,224
7,553


Ma Yongsheng
Yu Baocai
Shou Donghua
Chairman
President
Chief Financial Officer
(Legal representative)
   


16



Consolidated Cash Flow Statement
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
I. Cash flows from operating activities:
   
Cash received from sale of goods and rendering of services
834,060
784,361
Refund of taxes and levies
2,220
165
Other cash received relating to operating activities
41,972
55,649
Sub-total of cash inflows
878,252
840,175
Cash paid for goods and services
(738,348)
(663,927)
Cash paid to and for employees
(21,340)
(20,068)
Payments of taxes and levies
(73,344)
(122,520)
Other cash paid relating to operating activities
(63,617)
(80,441)
Sub-total of cash outflows
(896,649)
(886,956)
Net cash flow used in operating activities
(18,397)
(46,781)
II. Cash flows from investing activities:
   
Cash received from disposal of investments
36
35
Cash received from returns on investments
407
1,095
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
1,849
6
Other cash received relating to investing activities
5,995
14,689
Net cash received from disposal of subsidiaries and other business entities
-
1
Sub-total of cash inflows
8,287
15,826
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets
(32,418)
(35,567)
Cash paid for acquisition of investments
(2,334)
(5,946)
Net cash paid for the acquisition of subsidiaries and other business entities
-
(1,562)
Other cash paid relating to investing activities
(27,824)
(10,831)
Sub-total of cash outflows
(62,576)
(53,906)
Net cash flow used in investing activities
(54,289)
(38,080)


17



Consolidated Cash Flow Statement (Continued)
III. Cash flows from financing activities:
   
Cash received from capital contributions
88
779
Including: Cash received from minority shareholders’ capital contributions to subsidiaries
88
626
Cash received from borrowings
228,360
138,034
Other cash received relating to financing activities
20
24
Sub-total of cash inflows
228,468
138,837
Cash repayments of borrowings
(139,146)
(73,648)
Cash paid for dividends, profits distribution or interest
(3,150)
(1,489)
Including: Subsidiaries’ cash payments for distribution of dividends or profits to minority shareholders
(1,554)
(188)
Other cash paid relating to financing activities
(3,887)
(4,920)
Sub-total of cash outflows
(146,183)
(80,057)
Net cash flows from financing activities
82,285
58,780
IV. Effects of changes in foreign exchange rate
(1,102)
(357)
V. Net increase/(decrease) in cash and cash equivalents
8,497
(26,438)
Add: Cash and cash equivalents at the beginning of the period
93,438
108,590
VI. Cash and cash equivalents at the end of the period
101,935
82,152



Ma Yongsheng
Yu Baocai
Shou Donghua
Chairman
President
Chief Financial Officer
(Legal representative)
   


18



Cash Flow Statement
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
I. Cash flows from operating activities:
   
Cash received from sale of goods and rendering of services
339,803
342,305
Refund of taxes and levies
1,379
90
Other cash received relating to operating activities
10,193
7,902
Sub-total of cash inflows
351,375
350,297
Cash paid for goods and services
(260,527)
(263,091)
Cash paid to and for employees
(10,659)
(10,585)
Payments of taxes and levies
(37,586)
(65,952)
Other cash paid relating to operating activities
(18,722)
(15,830)
Sub-total of cash outflows
(327,494)
(355,458)
Net cash flow received from /(used in) operating activities
23,881
(5,161)
II. Cash flows from investing activities:
   
Cash received from disposal of investments
2,249
1,116
Cash received from returns on investments
3,666
1,277
Net cash received from disposal of fixed assets, intangible assets and other long-term assets
39
2
Other cash received relating to investing activities
2,460
37,794
Sub-total of cash inflows
8,414
40,189
Cash paid for acquisition of fixed assets, intangible assets and other long-term assets
(15,947)
(13,881)
Cash paid for acquisition of investments
(1,899)
(7,705)
Other cash paid relating to investing activities
(35,232)
(43,604)
Sub-total of cash outflows
(53,078)
(65,190)
Net cash flow used in investing activities
(44,664)
(25,001)
III. Cash flows from financing activities:
   
Cash received from borrowings
101,758
65,601
Other cash received relating to financing activities
56,691
101,758
Sub-total of cash inflows
158,449
167,359
Cash repayments of borrowings
(28,083)
(23,784)
Cash paid for dividends or interest
(1,779)
(1,941)
Other cash paid relating to financing activities
(89,729)
(125,190)
Sub-total of cash outflows
(119,591)
(150,915)
Net cash flow from financing activities
38,858
16,444


19



Cash Flow Statement (Continued)
IV. Effects of changes in foreign exchange rate
(32)
-
IV. Net increase/(decrease) in cash and cash equivalents
18,043
(13,718)
Add: Cash and cash equivalents at the beginning of the period
23,228
34,575
V. Cash and cash equivalents at the end of the period
41,271
20,857



Ma Yongsheng
Yu Baocai
Shou Donghua
Chairman
President
Chief Financial Officer
(Legal representative)
   


20



Segment Reporting
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
Income from principal operations
   
Exploration and production
   
External sales
52,585
52,455
Inter–segment sales
26,175
28,752
Subtotal
78,760
81,207
Refining
   
External sales
45,216
47,758
Inter–segment sales
322,166
336,542
Subtotal
367,382
384,300
Marketing and distribution
   
External sales
412,676
370,095
Inter–segment sales
3,850
2,704
Subtotal
416,526
372,799
Chemicals
   
External sales
96,966
113,153
Inter–segment sales
21,999
21,115
Subtotal
118,965
134,268
Corporate and others
   
External sales
165,532
171,306
Inter–segment sales
213,426
244,714
Subtotal
378,958
416,020
Elimination of inter–segment sales
(587,616)
(633,827)
Consolidated income from principal operations
772,975
754,767
Income from other operations
   
Exploration and production
2,165
1,817
Refining
911
940
Marketing and distribution
12,418
10,754
Chemicals
2,330
2,600
Corporate and others
532
508
Consolidated income from other operations
18,356
16,619
Consolidated operating income
791,331
771,386


21



Segment Reporting (Continued)
Operating profit
   
By segment
   
Exploration and production
11,447
10,494
Refining
9,836
22,061
Marketing and distribution
8,062
9,318
Chemicals
(2,144)
1,157
Corporate and others
1,978
10,853
Elimination
(540)
(9,770)
Total segment operating profit
28,639
44,113
Investment income
   
Exploration and production
64
1,153
Refining
292
416
Marketing and distribution
609
(148)
Chemicals
(1,239)
568
Corporate and others
1,767
(3,651)
Total segment investment income
1,493
(1,662)
Financial expenses
(2,539)
(2,305)
Losses from changes in fair value
(244)
(6,937)
Asset disposal gains
78
76
Other income
1,977
492
Operating profit
29,404
33,777
Add: Non-operating income
244
249
Less: Non-operating expenses
456
541
Profit before taxation
29,192
33,485


22



4.2
Quarterly financial statements prepared under International Financial Reporting Standards (IFRS)
Consolidated Income Statement
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
Revenue
   
Revenue from primary business
772,975
754,767
Other operating revenues
18,356
16,619
Subtotal
791,331
771,386
Operating expenses
   
Purchased crude oil, products and operating supplies and expenses
(631,716)
(588,136)
Selling, general and administrative expenses
(13,504)
(13,575)
Depreciation, depletion and amortisation
(26,999)
(26,694)
Exploration expenses, including dry holes
(3,128)
(2,983)
Personnel expenses
(23,883)
(23,741)
Taxes other than income tax
(62,707)
(71,186)
Impairment losses on trade and other receivables
(54)
(51)
Other operating income/(expenses), net
1,750
(12,060)
Total operating expenses
(760,241)
(738,426)
Operating profit
31,090
32,960
Finance costs
   
Interest expense
(5,604)
(3,743)
Interest income
2,670
1,387
Foreign currency exchange gain, net
395
51
Net finance costs
(2,539)
(2,305)
Investment income
111
64
Share of profits less losses from associates and joint ventures
1,223
3,619
Profit before taxation
29,885
34,338
Income tax expense
(6,328)
(6,795)
Profit for the period
23,557
27,543
Attributable to
   
Shareholders of the Company
20,740
23,533
Non-controlling interests
2,817
4,010
Profit for the period
23,557
27,543
Earnings per share
   
Basic earnings per share (RMB/Share)
0.173
0.194
Diluted earnings per share (RMB/Share)
0.173
0.194


23



Consolidated Statement of Comprehensive Income
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
Profit for the period
23,557
27,543
Total other comprehensive income:
(1,219)
2,500
Items that may not be reclassified subsequently to profit or loss:
   
Equity investments at fair value through other comprehensive income
1
-
Items that may be reclassified subsequently to profit or loss:
   
Cost of hedging reserve
-
(630)
Share of other comprehensive income of associates and joint ventures
(326)
(768)
Cash flow hedges
515
4,556
Foreign currency translation differences
(1,409)
(658)
Total comprehensive income
22,338
30,043
Attributable to:
   
Shareholders of the Company
19,654
26,422
Non–controlling interests
2,684
3,621


24



Consolidated Statement of Financial Position
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
At 31 March 2023
At 31 December 2022
Non-current assets:
   
Property, plant and equipment, net
630,916
630,700
Construction in progress
193,840
196,045
Right-of-use assets
263,953
264,856
Goodwill
6,446
6,464
Interest in associates
161,310
159,150
Interest in joint ventures
74,868
74,791
Financial assets at fair value through other comprehensive income
728
730
Deferred tax assets
22,400
22,433
Long-term prepayments and other non-current assets
71,923
72,812
Total non-current assets
1,426,384
1,427,981
Current assets:
   
Cash and cash equivalents
101,935
93,438
Time deposits with financial institutions
73,647
51,614
Financial assets at fair value through profit or loss
2
2
Derivatives financial assets
15,338
19,335
Trade accounts receivable
70,122
46,364
Financial assets at fair value through other comprehensive income
3,908
3,507
Inventories
254,077
244,241
Prepaid expenses and other current assets
65,740
64,639
Total current assets
584,769
523,140
Current liabilities:
   
Short-term debts
114,164
59,037
Loans from Sinopec Group Company and fellow subsidiaries
7,483
7,292
Lease liabilities
16,931
16,004
Derivatives financial liabilities
8,921
7,313
Trade accounts payable and bills payable
240,874
269,424
Contract liabilities
123,326
125,444
Other payables
154,201
178,146
Income tax payable
5,003
4,725
Total current liabilities
670,903
667,385


25



Consolidated Statement of Financial Position (Continued)
Net current liabilities
86,134
144,245
Total assets less current liabilities
1,340,250
1,283,736
Non-current liabilities:
   
Long-term debts
120,620
85,706
Loans from Sinopec Group Company and fellow subsidiaries
22,278
22,255
Lease liabilities
166,608
166,407
Deferred tax liabilities
7,875
7,256
Provisions
48,086
47,587
Other long-term liabilities
15,478
14,983
Total non-current liabilities
380,945
344,194
Total net assets
959,305
939,542
Equity:
   
Share capital
119,896
119,896
Reserves
686,203
667,704
Total equity attributable to shareholders of the Company
806,099
787,600
Non-controlling interests
153,206
151,942
Total equity
959,305
939,542


26



Consolidated Statement of Cash Flows
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
Net cash used in operating activities(a)
(18,397)
(46,781)
Investing activities
   
Capital expenditure
(27,956)
(31,762)
Exploratory wells expenditure
(4,462)
(3,805)
Purchase of investments
(2,334)
(4,946)
Payment for financial assets at fair value through profit or loss
-
(1,000)
Payment for acquisition of subsidiary, net of cash acquired
-
(1,562)
Proceeds from disposal of investments
36
36
Proceeds from disposal of property, plant, equipment and other non-current assets
1,849
6
Increase in time deposits with maturities over three months
(27,219)
(6,511)
Decrease in time deposits with maturities over three months
4,335
13,516
Interest received
2,381
1,311
Investment and dividend income received
407
1,095
Payments of other investing activities
(1,326)
(4,458)
Net cash used in investing activities
(54,289)
(38,080)
Financing activities
   
Proceeds from bank and other loans
228,360
138,034
Repayments of bank and other loans
(139,146)
(73,648)
Contributions to subsidiaries from non-controlling interests
88
779
Distributions by subsidiaries to non-controlling interests
(1,554)
(188)
Interest paid
(1,596)
(1,301)
Repayments of lease liabilities
(3,867)
(3,174)
Proceeds from other financing activities
20
24
Repayments of other financing activities
(20)
(1,746)
Net cash generated from financing activities
82,285
58,780
Net increase/(decrease) in cash and cash equivalents
9,599
(26,081)
Cash and cash equivalents at 1 January
93,438
108,590
Effect of foreign currency exchange rate changes
(1,102)
(357)
Cash and cash equivalents at 31 March
101,935
82,152


27



Note to Consolidated Statement of Cash Flows
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
(a) Reconciliation from profit before taxation to net cash used in operating activities
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
Operating activities
   
Profit before taxation
29,885
34,338
Adjustments for:
   
Depreciation, depletion and amortisation
26,999
26,694
Dry hole costs written off
1,792
1,886
Share of profits from associates and joint ventures
(1,223)
(3,619)
Investment income
(111)
(64)
Interest income
(1,553)
(1,387)
Interest expense
4,487
3,743
(Gain)/Loss on foreign currency exchange rate changes and derivative financial instruments
(314)
6,886
Gain on disposal of property, plant, equipment and other non-current assets, net
(7)
(76)
Impairment losses on assets
414
201
Impairment losses on trade and other receivables
54
51
Operating profit before change of operating capital
60,423
68,653
Accounts receivable and other current assets
(25,116)
(59,265)
Inventories
(10,234)
(82,616)
Accounts payable and other current liabilities
(38,424)
33,019
Subtotal
(13,351)
(40,209)
Income tax paid
(5,046)
(6,572)
Net cash used in operating activities
(18,397)
(46,781)


28



Segment Reporting
For the three-month period ended 31 March 2023 Prepared
by: China Petroleum & Chemical Corporation
Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
Revenue
   
Exploration and production
   
External sales
52,585
52,455
Inter-segment sales
26,175
28,752
Subtotal
78,760
81,207
Refining
   
External sales
45,216
47,758
Inter-segment sales
322,166
336,542
Subtotal
367,382
384,300
Marketing and distribution
   
External sales
412,676
370,095
Inter-segment sales
3,850
2,704
Subtotal
416,526
372,799
Chemicals
   
External sales
96,966
113,153
Inter-segment sales
21,999
21,115
Subtotal
118,965
134,268
Corporate and others
   
External sales
165,532
171,306
Inter-segment sales
213,426
244,714
Subtotal
378,958
416,020
Elimination of inter-segment sales
(587,616)
(633,827)
Revenue from primary business
772,975
754,767
Other operating revenues
   
Exploration and production
2,165
1,817
Refining
911
940
Marketing and distribution
12,418
10,754
Chemicals
2,330
2,600
Corporate and others
532
508
Other operating revenues
18,356
16,619
Revenue
791,331
771,386


29



Segment Reporting (Continued)
Result
   
Operating profit/(loss)
   
By segment
   
Exploration and production
12,847
10,429
Refining
10,403
22,493
Marketing and distribution
7,921
8,564
Chemicals
(1,780)
1,325
Corporate and others
2,239
(81)
Elimination
(540)
(9,770)
Total segment operating profit
31,090
32,960
Share of profits from associates and joint ventures
   
Exploration and production
510
1,024
Refining
46
421
Marketing and distribution
551
392
Chemicals
(1,147)
630
Corporate and others
1,263
1,152
Aggregate share of profits from associates and joint ventures
1,223
3,619
Investment income
   
Exploration and production
-
10
Refining
10
5
Marketing and distribution
3
37
Chemicals
(95)
(65)
Corporate and others
193
77
Aggregate investment income
111
64
Net finance costs
(2,539)
(2,305)
Profit before taxation
29,885
34,338


30



4.3
Differences between consolidated financial statements prepared in accordance with the accounting policies complying with CASs 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 CASs 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 CASs, 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 CASs, 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 CASs 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
Three-month period ended 31 March 2023
Three-month period ended 31 March 2022
Net profit under CASs
22,864
26,690
Adjustments:
   
Government grants(i)
7
5
Safety production fund(ii)
686
848
Profit for the period under IFRS
23,557
27,543


31



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

Units: million Currency: RMB Type: unaudited
Items
As of 31 March 2023
As of 31 December 2022
Shareholders’ equity under CASs
960,213
940,457
Adjustments:
   
Government grants(i)
(908)
(915)
Total equity under IFRS
959,305
939,542


4.4
Description of and reasons for changes in accounting policies
4.4.1
Description of and reasons for changes in accounting policies under CASs
In 2023, the Group has adopted the accounting requirements and guidance under CAS newly issued by the Ministry of Finance.
-
“Accounting treatment of deferred tax related to assets and liabilities arising from a single transaction for which initial recognition exemption does not apply” in CAS Bulletin No.16.

(a)
Accounting treatment of deferred tax related to assets and liabilities arising from a single transaction for which initial recognition exemption does not apply:

In accordance with CAS Bulletin No.16, the provisions of the Accounting Standards for Business Enterprises No. 18 — Income Taxes on exemption from initial recognition of deferred tax liabilities and deferred tax assets shall not apply to single transactions that are not business combinations, that do not affect accounting profits or taxable income (or deductible losses) upon transaction’s occurrence, and result in equal amount of taxable temporary differences and deductible temporary differences caused by initially recognised assets and liabilities. As for the taxable temporary differences and deductible temporary differences arising from the initial recognition of assets and liabilities in a single transaction, the Group shall, according to the Accounting Standards for Business Enterprises No. 18 — Income Taxes and other relevant provisions, respectively recognise the corresponding deferred tax liabilities and deferred tax assets upon the occurrence of the transaction.

The Group has made retrospective adjustments in accordance with these requirements for applicable single transactions occurring between 1 January 2022 and the date of initial implementation. With regard to deductible temporary differences and taxable temporary differences arising from lease liabilities and right-of-use assets recognised as at 1 January 2022 as a result of single transactions to which these provisions apply, the Group shall, in accordance with CAS Bulletin No.16 and Accounting Standards for Business Enterprises No. 18 — Income Taxes, adjust the cumulative effect amount with the retained earnings at the beginning of the earliest period presented in the financial statements and other relevant items of the financial statements.



32


(b)
The effects on the comparative financial statements

The effects of the above changes in accounting policies on the net profit for the three-month period ended 31 March 2022 and equity at the beginning and the end of 2022 are summarised as follows:

Units: million Currency: RMB Type: unaudited
Items
The Group
Net profit for the three months ended 31 March 2022
2022 Closing balance of shareholders’ equity
2022 Opening balance of shareholders’ equity
The effects of the exemption of initial recognition not applicable to the deferred tax relating to assets and liabilities arising out of a single transaction
214
3,304
2,448
Net profit and shareholders’ equity after adjustments
26,690
940,457
918,489

Units: million Currency: RMB Type: unaudited
Items
The Company
Net profit for the three months ended 31 March 2022
2022 Closing balance of shareholders’ equity
2022 Opening balance of shareholders’ equity
The effects of the exemption of initial recognition not applicable to the deferred tax related to assets and liabilities arising from a single transaction
133
1,750
1,217
Net profit and shareholders’ equity after adjustments
5,995
506,627
527,531


33



The effects of the above changes in accounting policies on each item of the consolidated balance sheet as at 31 December 2022 and the Company's balance sheet are summarized as follows:
Consolidated Balance Sheet

Units: million Currency: RMB Type: unaudited
Items
As of 31 December 2022 before adjustment
As of 31 December 2022 adjusted
Adjusted amount
Non-current assets:
     
Deferred tax assets
19,952
22,433
2,481
Total non-current assets
1,425,500
1,427,981
2,481
Total assets
1,948,640
1,951,121
2,481
Non-current liabilities:
     
Deferred tax liabilities
8,079
7,256
(823)
Total non-current liabilities
344,102
343,279
(823)
Total liabilities
1,011,487
1,010,664
(823)
Shareholders’ equity:
     
Surplus reserves
217,834
218,009
175
Retained earnings
323,087
325,806
2,719
Total equity attributable to shareholders of the Company
785,577
788,471
2,894
Minority interests
151,576
151,986
410
Total shareholders’ equity
937,153
940,457
3,304
Total liabilities and shareholders’ equity
1,948,640
1,951,121
2,481

Balance Sheet

Units: million Currency: RMB Type: unaudited
Items
As of 31 December 2022 before adjustment
As of 31 December 2022 adjusted
Adjusted amount
Non-current assets:
     
Deferred tax assets
7,737
9,487
1,750
Total non-current assets
914,040
915,790
1,750
Total assets
1,141,670
1,143,420
1,750
Shareholders’ equity:
     
Surplus reserves
217,834
218,009
175
Retained earnings
100,947
102,522
1,575
Total shareholders’ equity
504,877
506,627
1,750
Total liabilities and shareholders’ equity
1,141,670
1,143,420
1,750


34



The effects of the above changes in accounting policies on each item of the consolidated income statement for the three-month period ended 31 March 2022 and the Company's income statement are summarized as follows:
Consolidated Income Statement

Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2022 before adjustment
Three-month period ended 31 March 2022 adjusted
Adjusted amount
Income tax expense
7,009
6,795
(214)
V. Net profit
26,476
26,690
214
Classification by going concern:
     
(i) Continuous operating net profit
26,476
26,690
214
Classification by ownership:
     
(i) Equity shareholders of the Company
22,605
22,800
195
(ii) Minority interests
3,871
3,890
19
VII. Total comprehensive income
28,976
29,190
214
Equity shareholders of the Company
25,494
25,689
195
Minority interests
3,482
3,501
19
VIII. Earnings per share
     
(i) Basic earnings per share (RMB/Share)
0.187
0.188
0.001
(ii) Diluted earnings per share (RMB/Share)
0.187
0.188
0.001

Income Statement

Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2022 before adjustment
Three-month period ended 31 March 2022 adjusted
Adjusted amount
Income tax expense
1,436
1,303
(133)
IV. Net profit
5,862
5,995
133
(i) Continuous operating net profit
5,862
5,995
133
VI. Total comprehensive income
7,420
7,553
133


35



4.4.2
Description of and reasons for changes in accounting policies under IFRS
(a)
Accounting treatment of deferred tax related to assets and liabilities arising from a single transaction for which initial recognition exemption does not apply.

The International Accounting Standards Board has amended IAS 12 and the scope of the exemption in paragraphs 15 and 24 of the previous standard is amended to "accounting treatment of deferred tax related to assets and liabilities arising from a single transaction for which initial recognition exemption does not apply", therefore, the Group needs to recognise deferred tax assets and deferred tax liabilities for temporary differences arising from these transactions. The amendment is effective for annual reporting periods beginning on or after 1 January 2023, with earlier application permitted. The Group applies the amendments to transactions occurring on or after the beginning of the earliest comparative period listed, with any cumulative effect recognised as an adjustment to retained earnings and other related financial statement items at that date.

(b)
The effects on the comparative financial statements
The effects of the above changes in accounting policies on the net profit for the three-month period ended 31 March 2022 and equity at the beginning and the end of 2022 are summarised as follows:

Units: million Currency: RMB Type: unaudited
Items
The Group
Profit for the three-month period ended 31 March 2023
Equity as of 31 December 2022
Equity as of 1 January 2022
The effects of the exemption of initial recognition not applicable to the deferred tax related to assets and liabilities arising from a single transaction
214
3,304
2,448
Net profit and equity after adjustments
27,543
939,542
917,522


36



The effects of the above changes in accounting policies on each item of the consolidated income statement for the three-month period ended 31 March 2022 are summarized as follows:
Consolidated Income Statement

Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2022 before adjustment
Three-month period ended 31 March 2022 adjusted
Adjusted amount
Income tax expense
(7,009)
(6,795)
214
Profit for the period
27,329
27,543
214
Attributable to:
     
Owners of the Company
23,338
23,533
195
Non-controlling interests
3,991
4,010
19
Profit for the period
27,329
27,543
214
Earnings per share:
     
Basic earnings per share (RMB/Share)
0.193
0.194
0.001
Diluted earnings per share (RMB/Share)
0.193
0.194
0.001


The effects of the above changes in accounting policies on each item of the consolidated statement of comprehensive income for the three-month period ended 31 March 2022 are summarized as follows:
Consolidated Income Statement

Units: million Currency: RMB Type: unaudited
Items
Three-month period ended 31 March 2022 before adjustment
Three-month period ended 31 March 2022 adjusted
Adjusted amount
Total comprehensive income for the period
29,829
30,043
214
Attributable to:
     
Shareholders of the Company
26,227
26,422
195
Non-controlling interests
3,602
3,621
19


37



The effects of the above changes in accounting policies on each item of the consolidated balance sheet as at 31 December 2022 are summarized as follows:
Consolidated Balance Sheet

Units: million Currency: RMB Type: unaudited
Items
As of 31 December 2022 before adjustment
As of 31 December 2022 adjusted
Adjusted amount
Non-current assets:
     
Deferred tax assets
19,952
22,433
2,481
Total non-current assets
1,425,500
1,427,981
2,481
Current liabilities:
     
Net current liabilities
144,245
144,245
-
Total assets less current liabilities
1,281,255
1,283,736
2,481
Non-current liabilities:
     
Deferred tax liabilities
8,079
7,256
(823)
Total non-current liabilities
345,017
344,194
(823)
Total net assets
936,238
939,542
3,304
Equity:
     
Reserves
664,810
667,704
2,894
Total equity attributable to shareholders of the Company
784,706
787,600
2,894
Non-controlling interests
151,532
151,942
410
Total equity
936,238
939,542
3,304




38

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: April 28 2023

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