Annual Report 2012

Recommendations

Info

Financial Statements (PRC) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2012 52 CONTINGENT LIABILITIES (a) The Company has been advised by its PRC lawyers that, except for liabilities constituting or arising out of or relating to the business assumed by the Company in the Reorganisation, no other liabilities were assumed by the Company, and the Company is not jointly and severally liable for other debts and obligations incurred by Sinopec Group Company prior to the Reorganisation. (b) At 31 December 2012 and 2011, guarantees given by the Group and the Company to banks in respect of banking facilities granted to the parties below are as follows: 124 Annual Report 2012 CHINA PETROLEUM & CHEMICAL CORPORATION The Group The Company 2012 2011 2012 2011 RMB millions RMB millions RMB millions RMB millions Jointly controlled entities 574 703 245 283 Associates 75 79 — 4 Others 5,496 6,700 — — Total 6,145 7,482 245 287 The Group monitors the conditions that are subject to the guarantees to identify whether it is probable that a loss has occurred, and recognises any such losses under guarantees when those losses are estimable. At 31 December 2012 and 2011, it is not probable that the Group will be required to make payments under the guarantees. Thus no liabilities have been accrued for a loss related to the Group’s obligation under these guarantee arrangements. Environmental contingencies Under existing legislation, management believes that there are no probable liabilities that will have a material adverse effect on the financial position or operating results of the Group. The PRC government, however, has moved, and may move further towards more rigorous enforcement of applicable laws, and towards the adoption of more stringent environmental standards. Environmental liabilities are subject to considerable uncertainties which affect the Group’s ability to estimate the ultimate cost of remediation efforts. These uncertainties include (i) the exact nature and extent of the contamination at various sites including, but not limited to refineries, oil fields, service stations, terminals and land development areas, whether operating, closed or sold, (ii) the extent of required cleanup efforts, (iii) varying costs of alternative remediation strategies, (iv) changes in environmental remediation requirements, and (v) the identification of new remediation sites. The amount of such future cost is indeterminable due to such factors as the unknown magnitude of possible contamination and the unknown timing and extent of the corrective actions that may be required. Accordingly, the outcome of environmental liabilities under proposed or future environmental legislation cannot reasonably be estimated at present, and could be material. The Group paid normal routine pollutant discharge fees of approximately RMB 4,813 million for the year ended 31 December 2012 (2011: RMB 4,228 million). Legal contingencies The Group is a defendant in certain lawsuits as well as the named party in other proceedings arising in the ordinary course of business. While the outcomes of such contingencies, lawsuits or other proceedings cannot be determined at present, management believes that any resulting liabilities will not have a material adverse effect on the financial position or operating results of the Group. 53 SEGMENT REPORTING Segment information is presented in respect of the Group’s operating segments. The format is based on the Group’s management and internal reporting structure. In a manner consistent with the way in which information is reported internally to the Group’s chief operating decision maker for the purposes of resource allocation and performance assessment, the Group has identified the following five reportable segments. No operating segments have been aggregated to form the following reportable segments. (i) Exploration and production – which explores and develops oil fields, produces crude oil and natural gas and sells such products to the refining segment of the Group and external customers. (ii) Refining – which processes and purifies crude oil, which is sourced from the exploration and production segment of the Group and external suppliers, and manufactures and sells petroleum products to the chemicals and marketing and distribution segments of the Group and external customers. (iii) Marketing and distribution – which owns and operates oil depots and service stations in the PRC, and distributes and sells refined petroleum products (mainly gasoline and diesel) in the PRC through wholesale and retail sales networks. (iv) Chemicals – which manufactures and sells petrochemical products, derivative petrochemical products and other chemical products to external customers. (v) Others – which largely comprise the trading activities of the import and export companies of the Group and research and development undertaken by other subsidiaries. The segments were determined primarily because the Group manages its exploration and production, refining, marketing and distribution, chemicals, and others businesses separately. The reportable segments are each managed separately because they manufacture and/or distribute distinct products with different production processes and due to their distinct operating and gross margin characteristics.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) for the year ended 31 December 2012 53 SEGMENT REPORTING (Continued) (1) Information of reportable segmental revenues, profits or losses, assets and liabilities The Group’s chief operating decision maker evaluates the performance and allocates resources to its operating segments on an operating income basis, without considering the effects of finance costs or investment income. Inter-segment transfer pricing is based on the market price or cost plus an appropriate margin, as specified by the Group’s policy. Assets and liabilities dedicated to a particular segment’s operations are included in that segment’s total assets and liabilities. Segment assets include all tangible and intangible assets, except for cash at bank and on hand, long-term equity investments and deferred tax assets. Segment liabilities exclude short-term loans, short-term debentures payable, non-current liabilities due within one year, long-term loans, debentures payable, deferred tax liabilities and other non-current liabilities. Reportable information on the Group’s operating segments is as follows: 2012 2011 RMB millions RMB millions Income from principal operations Exploration and production External sales 53,738 47,519 Inter-segment sales 174,571 173,115 228,309 220,634 Refining External sales 193,464 189,504 Inter-segment sales 1,071,387 1,015,855 1,264,851 1,205,359 Marketing and distribution External sales 1,453,541 1,335,569 Inter-segment sales 9,638 5,767 1,463,179 1,341,336 Chemicals External sales 356,150 368,658 Inter-segment sales 48,226 45,203 404,376 413,861 Others External sales 676,725 522,517 Inter-segment sales 635,046 610,585 1,311,771 1,133,102 Elimination of inter-segment sales (1,938,868) (1,850,525) Income from principal operations 2,733,618 2,463,767 Income from other operations Exploration and production 28,876 21,204 Refining 6,061 6,713 Marketing and distribution 8,703 6,290 Chemicals 7,588 6,629 Others 1,199 1,080 Income from other operations 52,427 41,916 Consolidated operating income 2,786,045 2,505,683 125 CHINA PETROLEUM & CHEMICAL CORPORATION Annual Report 2012 Financial Statements (PRC)
Page 3 and 4:
CONTENTS 2 Company Profile 3 Princi
Page 5 and 6:
PRINCIPAL FINANCIAL DATA AND INDICA
Page 7 and 8:
2 FINANCIAL INFORMATION EXTRACTED F
Page 9 and 10:
(2) Information disclosed by the sh
Page 11:
Sinopec Corp.’s development accel
Page 14 and 15:
Business Review and Prospects BUSIN
Page 16 and 17:
Page 18 and 19:
Page 21 and 22:
MANAGEMENT’S DISCUSSION AND ANALY
Page 23 and 24:
The following table shows the opera
Page 25 and 26:
In 2012, refining margin was RMB 15
Page 27 and 28:
As at 31 December 2012, the Company
Page 29:
(2) Financial data prepared under A
Page 33 and 34:
(2) THE PROPOSED ISSUANCE OF A SHAR
Page 36 and 37:
Significant Events SIGNIFICANT EVEN
Page 39 and 40:
CONNECTED TRANSACTIONS 1 AGREEMENTS
Page 41:
Decision-making procedures: The maj
Page 44 and 45:
Corporate Governance CORPORATE GOVE
Page 46 and 47:
Page 48 and 49:
Page 51 and 52:
REPORT OF THE BOARD OF DIRECTORS Th
Page 53 and 54:
6 DIVIDEND During this report perio
Page 55 and 56:
16 RISK FACTORS In the course of it
Page 57 and 58:
Firstly, the Board of Directors dil
Page 59 and 60:
DIRECTORS, SUPERVISORS, SENIOR MANA
Page 61 and 62:
Li Chunguang Dai Houliang Liu Yun L
Page 63 and 64:
The Members of the Fourth Session o
Page 65 and 66:
Zou Huiping Zou Huiping, aged 52, S
Page 67 and 68:
The Members of the Fourth Session o
Page 69 and 70:
Lei Dianwu Ling Yiqun Lei Dianwu, a
Page 71 and 72:
THE BREAKDOWN ACCORDING TO THE MEMB
Page 73 and 74:
REPORT OF THE PRC AUDITOR All Share
Page 75 and 76: BALANCE SHEET as at 31 December 201
Page 77 and 78: INCOME STATEMENT for the year ended
Page 79 and 80: CASH FLOW STATEMENT for the year en
Page 81 and 82: STATEMENT OF CHANGES IN EQUITY for
Page 83 and 84: NOTES TO THE FINANCIAL STATEMENTS (
Page 125: NOTES TO THE FINANCIAL STATEMENTS (
Page 137 and 138: (B) FINANCIAL STATEMENTS PREPARED U
Page 139 and 140: CONSOLIDATED BALANCE SHEET as at 31
Page 141 and 142: CONSOLIDATED STATEMENT OF CHANGES I
Page 143 and 144: CONSOLIDATED STATEMENT OF CASH FLOW
Page 145 and 146: NOTES TO THE FINANCIAL STATEMENTS f
Page 175 and 176: NOTES TO THE FINANCIAL STATEMENTS f
Page 177 and 178:
NOTES TO THE FINANCIAL STATEMENTS (
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
(C) DIFFERENCES BETWEEN FINANCIAL S
Page 195 and 196:
(D) SUPPLEMENTAL INFORMATION ON OIL
Page 198 and 199:
Corporate Information CORPORATE INF
Page 200:
Confirmation from fhe Directors and
show all

Annual Report 2012

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?