2020 Interim Report Issued by Directors, Supervisors and Senior Management 235 Corporate Information
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SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED COMPANY SINOPEC SHANGHAI PETROCHEMICAL ﹙於中華人民共和國註冊成立的股份有限公司﹚ ( A joint stock limited company incorporated in the People's Republic of China ) 股份代號: 00338 香港 600688 上海 SHI 紐約 Stock code: 00338 Hong Kong 600688 Shanghai SHI New York 半年度報告 2020 INTERIM REPORT 2020 中國石化上海石油化工股份有限公司 INTERIM REPORT 2020 INTERIM REPORT 半年度報告 CONTENTS 2 Important Message 3 Definitions 4 Major Financial Data and Indicators 7 Report of the Directors 28 Major Events 37 Change in Share Capital of Ordinary Shares and Shareholders 44 Directors, Supervisors, Senior Management and Others 49 Documents for Inspection 50 Report on Review of Interim Financial Information A. Condensed Consolidated Interim Financial Information Prepared under International Financial Reporting Standards (unaudited) 51 Interim Condensed Consolidated Income Statement 53 Interim Condensed Consolidated Statement of Comprehensive Income 54 Interim Condensed Consolidated Balance Sheet 56 Interim Condensed Consolidated Statement of Changes in Equity 58 Interim Condensed Consolidated Statement of Cash Flows 60 Notes to the Condensed Consolidated Interim Financial Information B. Interim Financial Statements Prepared under China Accounting Standards for Business Enterprises (unaudited) 97 Consolidated and Company Balance Sheets 99 Consolidated and Company Income Statements 101 Consolidated and Company Cash Flow Statements 103 Consolidated Statement of Changes in Shareholders’ Equity 104 Statement of Changes in Shareholders’ Equity 105 Notes to the Financial Statements 230 Supplementary Information to the Financial Statements 233 Written Confirmation on the 2020 Interim Report Issued by Directors, Supervisors and Senior Management 235 Corporate Information 2020 Interim Report 11 IMPORTANT MESSAGE 1. The Board, the Supervisory Committee of Sinopec Shanghai Petrochemical Company Limited (the “Company” or “Shanghai Sinopec”) and the Directors, Supervisors and senior management warrant the truthfulness, accuracy and completeness of the information contained in this 2020 interim report, and warrant that there are no false representations or misleading statements contained in, or material omissions from, the 2020 interim report of the Company, and severally and jointly accept responsibility. 2. All the Directors attended the second meeting of the Tenth Session of the Board for approving the 2020 interim report of the Company. 3. The interim financial report for the six months ended 30 June 2020 (the “Reporting Period”) is unaudited. 4. Mr. Wu Haijun, Chairman of the Company; Mr. Zhou Meiyun, Executive Director, Vice President and Chief Financial Officer overseeing the Accounting Department; and Ms. Yang Yating, person in charge of the Accounting Department (Accounting Chief) and General Manager of Finance Department hereby warrant the truthfulness, accuracy and completeness of the financial statements contained in the 2020 interim report. 5. The Company did not distribute half-year profit for 2020 nor was there any capitalization of capital reserves. 6. The statements regarding the Company’s plans for future development and operation are forward-looking statements and do not constitute any commitments to investors. Investors should pay attention to the relevant investment risks. 7. There was no incident of appropriation of funds by the controlling shareholder of the Company and its connected persons for non-operational purposes. 8. The Company did not provide external guarantees in violation of the required decision-making procedures. 9. Reminder on Major Risks Potential risks are elaborated in this interim report. Please refer to “Management Discussion and Analysis” in section 2 of the “Report of the Directors” in chapter 3 for details of the potential risks arising from the future development of the Company. 10. The 2020 interim report is published in both Chinese and English. In the event of any discrepancy between the English and Chinese versions, the Chinese version shall prevail. 22 Sinopec Shanghai Petrochemical Company Limited DEFINITIONS In this report, unless the context otherwise specifies, the following terms shall have the following meanings: “Company” or “Sinopec Shanghai” refers to Sinopec Shanghai Petrochemical Company Limited “Board” refers to the Board of Directors of the Company “Director(s)” refers to the Director(s) of the Company “Supervisory Committee” refers to the Supervisory Committee of the Company “Supervisor(s)” refers to the Supervisor(s) of the Company “PRC” or “China” refers to the People’s Republic of China “Reporting Period” refers to the six months ended 30 June 2020 “Hong Kong Stock Exchange” refers to The Stock Exchange of Hong Kong Limited “Shanghai Stock Exchange” refers to The Shanghai Stock Exchange “Group” refers to the Company and its subsidiaries “Sinopec Group” refers to China Petrochemical Corporation “Sinopec Corp.” refers to China Petroleum & Chemical Corporation “Hong Kong Listing Rules” refers to The Rules Governing the Listing of Securities on the Hong Kong Stock Exchange “Shanghai Listing Rules” refers to The Rules Governing the Listing of Securities on the Shanghai Stock Exchange “Model Code for refers to the Model Code for Securities Transactions by Directors of Listed Securities Transactions” Issuers set out in Appendix 10 to the Hong Kong Listing Rules “Securities Law” refers to the PRC Securities Law “Company Law” refers to the PRC Company Law “CSRC” refers to China Securities Regulatory Commission “Articles of Association” refers to the articles of association of the Company “Hong Kong Stock Exchange website” refers to www.hkexnews.hk “Shanghai Stock Exchange website” refers to www.sse.com.cn “website of the Company” refers to www.spc.com.cn “HSSE” refers to Health, Safety, Security and Environment “COD” refers to Chemical Oxygen Demand “VOCs” refers to Volatile Organic Compounds “LDAR” refers to Leak Detection and Repair “SFO” refers to the Securities and Futures Ordinance of Hong Kong (Chapter 571 of the Laws of Hong Kong) “Corporate Governance Code” refers to the Corporate Governance Code set out in Appendix 14 to the Hong Kong Listing Rules “Share Option Incentive Scheme” refers to the A Share Share Option Incentive Scheme of the Company 2020 Interim Report 33 MAJOR FINANCIAL DATA AND INDICATORS (1) Major Accounting Data and Financial Indicators (Prepared under China Accounting Standards for Business Enterprises (“CAS”)) Unit: RMB’000 Increase/decrease The Reporting as compared to Period Corresponding the corresponding (January to period of the period of the Major accounting data June) previous year previous year (%) Operating income 35,663,352 51,992,583 -31.41 Total (loss)/profit -2,354,618 1,359,243 -273.23 Net (loss)/profit attributable to equity shareholders of the Company -1,716,072 1,137,241 -250.90 Net (loss)/profit attributable to equity shareholders of the Company excluding non-recurring items -1,788,160 1,137,729 -257.17 Net cash (used in)/generated from operating activities -2,904,221 245,974 -1,280.70 Increase/decrease at the end of the As at the Reporting Period end of the As at the end as compared to Reporting of the the end of the Period previous year previous year (%) Net assets attributable to equity shareholders of the Company 26,905,393 29,885,341 -9.97 Total assets 42, 307,625 45,636,128 -7.29 44 Sinopec Shanghai Petrochemical Company Limited MAJOR FINANCIAL DATA AND INDICATORS (continued) Increase/decrease The Reporting as compared to Period Corresponding the corresponding (January to period of the period of the Major financial indicators June) previous year previous year (%) Basic (losses)/earnings per share (RMB/ Share) -0.159 0.105 -251.43 Diluted (losses)/earnings per share (RMB/ Share) -0.159 0.105 -251.43 Basic (losses)/earnings per share after non- recurring items (RMB/Share) -0.164 0.106 -254.72 (Loss)/return on net assets (weighted Decrease by 10.26 average) (%)* -6.588 3.676 percentage points (Loss)/return on net assets after non- Decrease by 10.53 recurring items (weighted average) (%)* -6.835 3.698 percentage points * The above-mentioned net assets do not include minority shareholders’ interests. (2) Differences between Financial Statements Prepared under CAS and International Financial Reporting Standards (“IFRS”) Unit: RMB’000 Net (loss)/profit attributable Net assets attributable to to equity shareholders equity shareholders of the holding company of the holding company At the Corresponding At the end of beginning of The Reporting period of the the Reporting the Reporting Period previous year Period Period Prepared under CAS -1,716,072 1,137,241 26,905,393 29,885,341 Prepared under IFRS -1,670,829 1,143,560 26,884,345 29,863,288 For a detailed description of the differences between financial statements prepared under CAS and those prepared under IFRS, please refer to the Supplementary Information to the Financial Statements prepared under CAS. 2020 Interim Report 55 MAJOR FINANCIAL DATA AND INDICATORS (continued) (3) Non-recurring Profit and Loss Items (Prepared under China Accounting Standards for Business Enterprises (“CAS”)) Unit: RMB’000 Non-recurring profit and loss items Amount Gains on disposal of non-current assets 2,186 Government grants recorded in profit and loss 21,495 Employee reduction expenses -11,554 Profits from changes in fair value of derivative financial assets and liabilities 9,281 Gains from structured deposits 73,170 Gains on foreign exchange options 1,031 Loss on selling of fair value through other comprehensive income -13,185