Annual Report and Accounts

10 Apr 2007 07:01

China Petroleum & Chemical Corp10 April 2007 (a joint stock limited company incorporated in the People's Republic of China with limited liability) Results for the Year Ended 31 December 2006 (S)1. Important Notice 1.1 The Board of Directors of China Petroleum & Chemical Corporation ("SinopecCorp.") and the Directors, Supervisors and Senior Management warrant that thereare no material omissions from, or misrepresentations or misleading statementscontained in this announcement, and jointly and severally accept fullresponsibility for the authenticity, accuracy and completeness of theinformation contained in this announcement. This announcement is a summary of the annual report. The entire report can bedownloaded from the websites of the Shanghai Stock Exchange (www.sse.com.cn) andSinopec Corp. (www.sinopec.com). Investors should read the annual report for theyear 2006 for more details. 1.2 The annual report for this year has been approved unanimously at the ninthmeeting of the Third Session of the Board. No Director has any doubt as to, orthe inability to warrant, the truthfulness, accuracy and completeness of theannual report. 1.3 Mr. Li Deshui. Mr. Yao Zhongmin and Mr. Fan Yifei, Directors of SinopecCorp., could not attend the nineth meeting of the third session of the board forreason of offical duties. Mr. Yao Zhongmin, authorised Mr. Chen. Tonghai,Chairman of Sinopec Corp., Mr. Li Deshui authorised Mr. Liu Zhong Li, Directorof Sinopec Corp., Mr. Fan Yifei authorised Mr. Wang Tianpu, Director, Presidentof Sinopec Corp., to vote on their behalf in respect of the resolutions putforward in the meeting of the Board. 1.4 The financial statements for the year ended 31 December 2006 of SinopecCorp. and its subsidiaries ("the Company") prepared in accordance with the PRCAccounting Rules and Regulations and International Financial Reporting Standards("IFRS") have been audited by KPMG Huazhen and KPMG, respectively, and bothfirms have issued unqualified opinions on the financial statements. 1.5 Mr. Chen Tonghai (Chairman of the Board), Mr. Wang Tianpu (President), Mr.Dai Houliang (Director and Chief Financial Officer) and Mr. Liu Yun (Head of theCorporate Finance Department) warrant the authenticity and completeness of thefinancial statements contained in the annual report for the year ended 31December 2006. (S)2. Basic Information about Sinopec Corp. 2.1 Basic information Stock name SINOPEC CORP SINOPEC CORP SINOPEC CORP SINOPEC CORP Stock code 0386 SNP SNP 600028 Place of listing Hong Kong New York London Shanghai Stock Exchange Stock Exchange Stock Exchange Stock Exchange Registered address 6A Huixindong Street, Chaoyang District, Beijing, China and office address Postcode 100029 Website http://www.sinopec.com E-mail ir@sinopec.com / media@sinopec.com 2.2 Contact persons of Sinopec Corp. and means of communication Secretary to Representative on Authorised representatives the Board of Directors Securities Matters Name Mr.Wang Tianpu Mr. Chen Ge Mr. Chen Ge Mr. Huang Wensheng Address 6A Huixindong Street, Chaoyang District, Beijing, China Tel 86-10-6499 0060 86-10-6499 0060 86-10-6499 0060 86-10-6499 0060 Fax 86-10-6499 0022 86-10-6499 0022 86-10-6499 0022 86-10-6499 0022 E-mail ir@sinopec.com / media@sinopec.com (S)3. SUMMARY OF ACCOUNTING DATA AND FINANCIAL INDICATORS 3.1 Principal accounting data and financial indicators prepared under the PRCAccounting Rules and Regulations for the year 2006 3.1.1 Principal accounting data For the For the For the year ended year ended year ended 31 December 31 December Increase/ 31 December Item 2006 2005 decrease (%) 2004 Income from principal operations (RMB million) 1,044,579 799,115 30.72 590,632 Profit before taxation (RMB million) 73,252 61,482 19.14 53,535 Net Profit (RMB million) 50,664 39,558 28.08 32,275 Net profit before non-operating profits/losses (RMB million) 48,573 34,999 38.78 35,996 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- At At At 31 December 31 December Increase/ 31 December Item 2006 2005 decrease (%) 2004 Total assets (RMB million) 594,550 520,572 14.21 460,081 Shareholders' funds (excluding minority interests) (RMB million) 254,875 215,623 18.20 186,350 Net cash flow from operating activities (RMB million) 102,587 84,963 20.74 70,139 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 3.1.2 Principal financial indicators For the For the For the year ended year ended year ended 31 December 31 December Increase/ 31 December Item 2006 2005 decrease (%) 2004 Earnings per share (RMB) (Fully diluted) 0.584 0.456 28.08 0.372 Return on net assets (%) (Fully diluted) 19.878 18.346 1.532 17.320 percentage point Return (before for non-operating profits/ (losses) on net assets (%) (Fully diluted) 19.058 16.232 2.826 19.316 percentage points (Weighted average) 20.572 17.414 3.158 20.524 percentage points Net cash flow from operating activities per share (RMB) 1.183 0.980 20.74 0.809 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- For the For the For the year ended year ended year ended 31 December 31 December Increase/ 31 December Item 2006 2005 decrease (%) 2004 Net assets per share (RMB)(Fully diluted) 2.940 2.487 18.20 2.149 Adjusted net assets per share (RMB) 2.865 2.426 18.10 2.102 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 3.1.3 Items under non-operating profits/losses: For the year ended 31 December 2006 (Income)/Expense Items RMB millions Gain on disposal of long-term equity investments (25) Written back of provisions for impairment losses in previous years (583) Non-operating expenses (excluding normal provisions on assets provided in accordance with the Accounting Regulations for Business Enterprises) 2,859 Of which: Loss on disposal of fixed assets 1,782 Employee reduction expenses 236 Donations 95 Non-operating income (372) Subsidy income (5,000) Tax effect 1,030 ----------- Total (2,091) ----------- ----------- 3.2 Principal accounting data and financial indicators prepared under IFRS for the year 2006 For the For the For the year ended year ended year ended 31 December 31 December Increase/ 31 December Item 2006 2005 decrease (%) 2004 Operating profit (RMB million) 83,820 68,246 22.82 62,891 Profit attributable to shareholders (RMB million) 53,912 41,455 30.05 35,335 Return on capital employed* (%) 13.26 11.95 1.31 12.59 percentage point Basic earnings per share (RMB) 0.622 0.478 30.05 0.408 Net cash flow from operating activities per share (RMB) 1.106 0.902 22.62 0.795 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- * Return on capital employed = operating profit x (1-income tax rate)/capital employed At At At 31 December 31 December Increase/ 31 December Item 2006 2005 decrease (%) 2004 Current assets (RMB million) 145,467 147,057 (1.08) 122,685 Current liabilities (RMB million) 210,802 175,011 20.45 149,443 Total Assets (RMB million) 611,790 549,040 11.43 480,837 Equity attributable to equity shareholders of the Company (RMB million) 262,845 224,301 17.18 193,340 Net assets per share (RMB) 3.032 2.587 17.18 2.230 Adjusted net assets per share (RMB) 2.957 2.526 17.06 2.219 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- 3.3 Material differences between the PRC Accounting Rules and Regulations and IFRS (X) Applicable () Not applicable The PRC Accounting Rules and Regulations IFRS Net profit (RMB million) 50,664 53,912 --------------- --------------- --------------- --------------- Explanation on the differences See Subsection 9.2.3 (S)4. Changes in Share Capital and Shareholdings of the Principal Shareholders (X) Applicable ( ) Not applicable To view the full text of this press release, paste the following link into your web browser: http://english.sinopec.com/en-newsevent/en-announcement/download/en-ann070410b.pdf This information is provided by RNS The company news service from the London Stock Exchange