Annual Report 2012

Financial Statements (International)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
for the year ended 31 December 2012
(Amounts in millions)
140
Annual Report 2012 CHINA PETROLEUM & CHEMICAL CORPORATION
Total equity
attributable
to equity
Statutory Discretionary shareholders Non-
Share Capital Share surplus surplus Other Retained of the controlling
capital reserve premium reserve reserve reserves earnings Company interests Total equity
RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB
Balance at 1 January 2012 86,702 (33,208) 24,953 61,263 117,000 2,935 212,683 472,328 35,016 507,344
Profit for the year — — — — — — 63,879 63,879 2,917 66,796
Other comprehensive income (Note 15) — — — — — (65) — (65) (24) (89)
Total comprehensive income for the year — — — — — (65) 63,879 63,814 2,893 66,707
Transactions with owners, recorded directly in equity:
Contributions by and distributions to owners:
Exercise of Conversion of the 2011
Convertible Bonds (Note 29(e)) 118 — 799 — — — — 917 — 917
Final dividend for 2011 (Note 14) — — — — — — (17,364) (17,364) — (17,364)
Interim dividend for 2012 (Note 14) — — — — — — (8,682) (8,682) — (8,682)
Appropriation (a) — — — 6,340 — — (6,340) — — —
Rights issue of shares by a subsidiary,
net of issuance costs (f) — (18) — — — — — (18) 781 763
Distribution to Sinopec Group Company — (2) — — — — — (2) — (2)
Distributions by subsidiaries to non-controlling
interests, net of contributions — — — — — — — — (1,462) (1,462)
Total contributions by and distributions to owners 118 (20) 799 6,340 — — (32,386) (25,149) (681) (25,830)
Changes in ownership interests in subsidiaries that
do not result in a loss of control:
Acquisitions of non-controlling interests of subsidiaries — (79) — — — — — (79) (106) (185)
Total transactions with owners 118 (99) 799 6,340 — — (32,386) (25,228) (787) (26,015)
Others (g) — — — — — 435 (435) — — —
Balance at 31 December 2012 86,820 (33,307) 25,752 67,603 117,000 3,305 243,741 510,914 37,122 548,036
Notes:
(a) According to the Company’s Articles of Association, the Company is required to transfer 10% of its net profit determined in accordance with the PRC accounting policies
adopted by the Group to statutory surplus reserve. In the event that the reserve balance reaches 50% of the registered capital, no transfer is needed. The transfer to this
reserve must be made before distribution of a dividend to shareholders. Statutory surplus reserve can be used to make good previous years’ losses, if any, and may be
converted into share capital by issuing of new shares to shareholders in proportion to their existing shareholdings or by increasing the par value of the shares currently
held by them, provided that the balance after such issue is not less than 25% of the registered capital.
During the year ended 31 December 2012, the Company transferred RMB 6,340 million (2011: RMB 6,552 million), being 10% of the current year’s net profit determined
in accordance with the accounting policies complying with “Interpretation of Accounting Standards for Business Enterprises (“ASBE”), to this reserve.
(b) For the year ended 31 December 2011, the directors authorised the transfer of RMB 30,000 million, approved by shareholders at the Annual General Meeting, to the
discretionary surplus reserve. The usage of the discretionary surplus reserve is similar to that of statutory surplus reserve.
(c) According to the Company’s Articles of Association, the amount of retained earnings available for distribution to equity shareholders of the Company is the lower of the
amount determined in accordance with the accounting policies complying with ASBE and the amount determined in accordance with the accounting policies complying
with International Financial Reporting Standards (“IFRS”). At 31 December 2012, the amount of retained earnings available for distribution was RMB 152,912 million (2011:
RMB 121,463 million), being the amount determined in accordance with the accounting policies complying with IFRS. Final dividend for the year ended 31 December 2012
of RMB 17,933 million (2011: RMB 17,364 million) proposed after the balance sheet date has not been recognised as a liability at the balance sheet date.
(d) The capital reserve represents (i) the difference between the total amount of the par value of shares issued and the amount of the net assets transferred from Sinopec
Group Company in connection with the Reorganisation; and (ii) the difference between the considerations paid over the amount of the net assets of entities and related
operations acquired from Sinopec Group Company and non-controlling interests.
(e) The application of the share premium account is governed by Sections 168 and 169 of the PRC Company Law.
(f) During the year ended 31 December 2012, a subsidiary of the Group completed rights issue to its existing shareholders. The total proceeds received by this subsidiary
from its non-controlling shareholders amounted to HKD 966 million.
(g) According to relevant PRC regulations, the Group is required to transfer an amount to other reserves for the safety production fund based on the turnover of certain
refining and chemicals products or based on the production volume of crude oil and natural gas. During the year ended 31 December 2012, the Group transferred RMB
435 million (2011: RMB 1,790 million) from retained earnings to other reserves for the safety production fund.
The notes on pages 143 to 190 form part of these financial statements.