Annual Report 2012
Annual Report 2012
Annual Report 2012
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Financial Statements (PRC)<br />
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)<br />
for the year ended 31 December <strong>2012</strong><br />
48 RELATED PARTIES AND RELATED PARTY TRANSACTIONS (Continued)<br />
(3) The principal related party transactions with Sinopec Group Company and fellow subsidiaries, associates and jointly controlled entities, which<br />
were carried out in the ordinary course of business, are as follows: (Continued)<br />
(c) The Company has entered into a number of lease agreements with Sinopec Group Company to lease certain lands and buildings effective<br />
on 1 January 2000. The lease term is 40 or 50 years for lands and 20 years for buildings, respectively. The Company and Sinopec Group<br />
Company can renegotiate the rental amount every three years for land and the rental amount is approximately RMB 6,727 million (2011:<br />
RMB 6,727 million) per annum. However such amount cannot exceed the market price as determined by an independent third party.<br />
(d) The Company has entered into agreements with Sinopec Group Company effective from 1 January 2000 under which the Group has been<br />
granted the right to use certain trademarks, patents, technology and computer software developed by Sinopec Group Company.<br />
(e) The Company has entered into a service station franchise agreement with Sinopec Group Company effective from 1 January 2000 under<br />
which its service stations and retail stores would exclusively sell the refined products supplied by the Group.<br />
(4) Balances with Sinopec Group Company and fellow subsidiaries, associates and jointly controlled entities<br />
The balances with the Group’s related parties at 31 December <strong>2012</strong> and 2011 are as follows:<br />
120<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2012</strong> CHINA PETROLEUM & CHEMICAL CORPORATION<br />
The ultimate holding company Other related companies<br />
<strong>2012</strong> 2011 <strong>2012</strong> 2011<br />
RMB millions RMB millions RMB millions RMB millions<br />
Cash and cash equivalents — — 4,012 7,120<br />
Accounts receivable 18 8 18,765 15,381<br />
Prepayments and other receivables — — 2,902 1,805<br />
Other non-current assets — — 4,196 4,626<br />
Accounts payable — — 11,093 9,795<br />
Advances from customers 81 — 1,098 1,080<br />
Other payables 21 40 10,095 8,594<br />
Short-term loans — — 42,631 11,949<br />
Long-term loans (including current portion) (Note) — — 37,886 37,763<br />
Note: The Sinopec Group Company had lent an interest-free loan for 20 years amounted to RMB 35,561 million to the Group through Sinopec Finance Company<br />
Limited which was included in the long-term loans.<br />
As at and for the year ended 31 December <strong>2012</strong> and 2011, no individually significant impairment losses for bad and doubtful debts were<br />
recorded in respect of amounts due from Sinopec Group Company and fellow subsidiaries, associates and jointly controlled entities.<br />
(5) Key management personnel emoluments<br />
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the<br />
Group, directly or indirectly, including directors and supervisors of the Group. The key management personnel compensations are as follows:<br />
<strong>2012</strong> 2011<br />
RMB RMB<br />
thousands thousands<br />
Short-term employee benefits 8,990 8,558<br />
Retirement scheme contributions 478 420<br />
9,468 8,978