Annual Report 2012

SIGNIFICANT EVENTS
1 MAJOR PROJECTS
(1) Wuhan Ethylene Project
The project mainly includes 800,000
tonnes per annum (“tpa”) ethylene units
and downstream auxiliary utility units. It
is expected to be put into operation in
the first half of 2013.
(2) Shandong Liquefied Natural Gas (LNG)
Project
Shandong LNG project mainly includes
the constructions of a jetty with a
3-million-tpa terminal, and the auxiliary
transportation pipeline for natural gas.
It is expected to be put into operation
in 2014.
(3) Pilot Natural Gas Project (1.7 billion
cubic meters per annum), Yuanba Gas
Field
A purification plant and its auxiliary
facilities are to be built. The production
capacity of the newly-built natural gas
purification plant will be 1.7 billion cubic
meters per annum. The construction is
expected to be completed in 2014.
(4) Guangdong Refining and Petrochemical
Integration Project
The project mainly includes the
constructions of a 15,000,000 tpa
refinery, 1,000,000 tpa ethylene unit, and
300,000-tonne jetty. It is expected to be
put into operation in 2016.
2 ISSUANCE OF CONVERTIBLE BONDS
The credit ratings of China Petrochemical
Corporation, the guarantor of the Sinopec CB
by Moody and Standard & Poors were Aa3
and A+ respectively. No material fluctuation
was noted on profitability, asset and credit
rating conditions.
At the end of the reporting period, the
liability to asset ratio of Sinopec Corp. was
56.73 %. The ratio was kept stable and
there was no material change in structure.
The credit ratings of Sinopec Corp. by
Moody and Standard & Poors were Aa3 and
A+ respectively in 2012. Domestic long-term
credit rating of Sinopec Crop. remained as
AAA. Sinopec Corp. has strong capability
of financing and repayment, additionally it
has been granted sufficient credit limits by
domestic commercial banks. Sinopec Corp.
plans to primarily use its own funds to repay
the debts due and the accrued interests.
In the event of any shortfalls, Sinopec
Corp. will seek to finance the repayment
of the principal and accrued interests in a
timely manner via new bank loans or direct
financing in capital markets.
(1) ISSURANCE OF RMB 23 BILLION A
SHARE CONVERTIBLE BONDS
A Share convertible bonds of RMB 23
billion were issued by Sinopec Corp. on
23 February 2011 (hereby referred to
as “Sinopec CB”, code : 110015). The
par value and issuance price of Sinopec
CB are both RMB 100. Sinopec CB were
issued with a term of six years with
annual interest rate of 0.5%, 0.7%, 1.0%,
1.3%, 1.8% and 2.0%, respectively.
The initial conversion price was RMB
9.73 per share. It was listed on the
Shanghai Stock Exchange on 7 March
2011. For further details, please refer
to the “Announcement of issuance of
A Share Convertible Bonds by Sinopec
Corp.” and the “Announcement of the
Listing of A Share Convertible Bonds by
Sinopec Corp.” published on the websites
of the Shanghai Stock Exchange and
Sinopec Corp. The proceeds were used
in the following projects: Wuhan ethylene
project, Anqing Refinery Revamping
Project, Shijiazhuang Refinery Revamping
Project, Yulin-Jinan Natural Gas Pipeline
Project and Rizhao-Yizheng Crude Oil
Pipeline Project. On 1 March 2013,
Sinopec Corp. paid in full the accrued
interests of Sinopec CB for the second
interest payment year.
On 20 June 2011 and 19 September
2011, the conversion price of Sinopec CB
was adjusted to RMB 9.60 per share and
RMB 9.50 per share respectively due to
the then-dividend payment declaration.
Sinopec Corp. held the second
extraordinary general meeting for the
year 2011 on 15 December 2011. During
the meeting, the proposal of a downward
adjustment to the conversion price of
Sinopec CB was approved. Conversion
price of Sinopec CB was adjusted from
RMB 9.50 per share to RMB 7.28 per
share effective from 27 December 2011.
On 28 May 2012 and 17 September
2012, the conversion price of Sinopec CB
was adjusted to RMB 7.08 per share and
RMB 6.98 per share respectively due to
the then-dividend payment declaration.
As of 31 December 2012, our A shares
increased by 117,759,112 shares as
a result of the exercise of conversion
rights by some Sinopec CB holders, with
an outstanding bonds balance of RMB
22,142,639,000.
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CHINA PETROLEUM & CHEMICAL CORPORATION Annual Report 2012
Significant Events