Exhibit 99.1
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
PETROCHINA COMPANY LIMITED
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Hong Kong Stock Exchange Stock Code: 857; Shanghai Stock Exchange Stock Code: 601857)
ANNOUNCEMENT
Third Quarterly Report of 2022
1. | Important Notice |
1.1. | The Board of Directors, the Supervisory Committee and the Directors, Supervisors and Senior Management of PetroChina Company Limited (the “Company”) warrant that there are no material omissions from, or misrepresentation or misleading statements contained in this quarterly report, and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this quarterly report. |
1.2. | This quarterly report has been approved at the 18th meeting of the eighth session of the Board of Directors of the Company. All Directors have attended the current meeting of the Board of Directors. |
1.3. | Mr. Dai Houliang, Chairman of the Board of Directors of the Company, Mr. Huang Yongzhang, Director and President of the Company, and Mr. Wang Hua, Chief Financial Officer of the Company, warrant the truthfulness, accuracy and completeness of the financial information set out in this quarterly report. |
1.4. | The financial statements of the Company and its subsidiaries (the “Group”) have been prepared in accordance with the China Accounting Standards (“CAS”) and the International Financial Reporting Standards (“IFRS”), respectively. The financial statements set out in this quarterly report are unaudited. |
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2. | Basic Information of the Company |
2.1 | Key Financial Data and Financial Indicators |
2.1.1 | Key Financial Data and Financial Indicators Prepared under IFRS |
Unit: RMB Million | ||||||||||||||||||||||||
Items | For the three months ended September 30 (July-September) | For the nine months ended September 30 (January-September) | ||||||||||||||||||||||
2022 | 2021 | Changes over the same period of the preceding year | 2022 | 2021 | Changes over the same period of the preceding year | |||||||||||||||||||
Revenue | 840,780 | 683,760 | 23.0 | % | 2,455,401 | 1,880,341 | 30.6 | % | ||||||||||||||||
Profit attributable to owners of the Company | 37,880 | 22,089 | 71.5 | % | 120,271 | 75,126 | 60.1 | % | ||||||||||||||||
Return on net assets (%) | 2.82 | 1.77 | | 1.05 percentage points | | 8.96 | 6.03 | | 2.93 percentage points | | ||||||||||||||
Basic earnings per share (RMB Yuan) | 0.21 | 0.12 | 71.5 | % | 0.66 | 0.41 | 60.1 | % | ||||||||||||||||
Diluted earnings per share (RMB Yuan) | 0.21 | 0.12 | 71.5 | % | 0.66 | 0.41 | 60.1 | % |
Unit: RMB Million | ||||||||||||
Items | From the beginning of the year to the end of the reporting period | From the beginning of the preceding year to the end of the preceding reporting period | Changes over the same period of the preceding year | |||||||||
Net cash flows from operating activities | 313,548 | 226,747 | 38.3 | % |
Items | As at the end of the reporting period | As at the end of the preceding year | Changes from the end of the preceding year to the end of the reporting period | |||||||||
Total assets | 2,793,316 | 2,502,262 | 11.6 | % | ||||||||
Equity attributable to equity holders of the Company | 1,342,959 | 1,263,561 | 6.3 | % |
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2.1.2 | Key Financial Data and Financial Indicators Prepared under CAS |
Unit: RMB Million | ||||||||||||||||||||||||
Items | For the three months ended September 30 (July-September) | For the nine months ended September 30 (January-September) | ||||||||||||||||||||||
2022 | 2021 | Changes over the same period of the preceding year | 2022 | 2021 | Changes over the same period of the preceding year | |||||||||||||||||||
Operating income | 840,780 | 683,760 | 23.0 | % | 2,455,401 | 1,880,341 | 30.6 | % | ||||||||||||||||
Net profit attributable to equity holders of the Company | 37,878 | 22,086 | 71.5 | % | 120,266 | 75,122 | 60.1 | % | ||||||||||||||||
Net profit after deducting non-recurring profit/loss items attributable to equity holders of the Company | 39,968 | 23,013 | 73.7 | % | 129,607 | 68,244 | 89.9 | % | ||||||||||||||||
Weighted average return on net assets (%) | 2.82 | 1.76 | | 1.06 percentage points | | 9.11 | 6.05 | | 3.06 percentage points | | ||||||||||||||
Basic earnings per share (RMB Yuan) | 0.21 | 0.12 | 71.5 | % | 0.66 | 0.41 | 60.1 | % | ||||||||||||||||
Diluted earnings per share (RMB Yuan) | 0.21 | 0.12 | 71.5 | % | 0.66 | 0.41 | 60.1 | % |
Unit: RMB Million | ||||||||||||
Items | From the beginning of the year to the end of the reporting period | From the beginning of the preceding year to the end of the preceding reporting period | Changes over the same period of the preceding year | |||||||||
Net cash flows from operating activities | 313,548 | 226,747 | 38.3 | % |
Items | As at the end of the reporting period | As at the end of the preceding year | Changes from the end of the preceding year to the end of the reporting period | |||||||||
Total assets | 2,793,583 | 2,502,533 | 11.6 | % | ||||||||
Equity attributable to equity holders of the Company | 1,343,209 | 1,263,815 | 6.3 | % |
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Unit: RMB Million | ||||||||
Non-recurring profit/loss items | Profit/(loss) for the three months ended September 30 (July - September) | Profit/(loss) for the nine months ended September 30 (January – September) | ||||||
Net loss on disposal of non-current assets | (744 | ) | (7,614 | ) | ||||
Government grants recognised in the income statement | 154 | 545 | ||||||
Reversal of provisions for bad debts against receivables | 51 | 102 | ||||||
Net profit on disposal of subsidiaries, associated companies and joint ventures | 9 | 58 | ||||||
Other non-operating expenses | (2,355 | ) | (5,200 | ) | ||||
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Sub-total | (2,885 | ) | (12,109 | ) | ||||
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Tax impact of non-recurring profit/loss items | 692 | 2,648 | ||||||
Impact of non-controlling interests | 103 | 120 | ||||||
Total | (2,090 | ) | (9,341 | ) | ||||
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2.1.3 | Differences between CAS and IFRS |
☒ Applicable ☐ Inapplicable
The consolidated net profit for the nine months ended September 30, 2022 under IFRS and CAS were RMB133,635 million and RMB133,630 million, respectively, with a difference of RMB5 million; the consolidated shareholders’ equity as at the end of the reporting period under IFRS and CAS were RMB1,512,725 million and RMB1,512,976 million, respectively, with a difference of RMB251 million, which was primarily due to the revaluation for assets other than fixed assets and oil and gas properties revalued in 1999. During the restructuring in 1999, a valuation was carried out for assets and liabilities injected by China National Petroleum Corporation (中國石油天然氣集團公司, now renamed 中國石油天然氣集團有限公司 on 19 December 2017, “CNPC” before and after the change of name). The valuation results on assets other than fixed assets and oil and gas properties were not recognised in the financial statements prepared under IFRS.
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2.2 | Total Number of Shareholders, Shareholdings of Top Ten Shareholders and Shareholdings of Top Ten Holders of Marketable Shares (or Shareholders of Shares Without Selling Restrictions) as at the end of the Reporting Period |
Total number of shareholders as at the end of the reporting period | 565,335 shareholders including 559,483 holders of A shares and 5,852 holders of H shares (including 120 holders of the American Depository Shares(1)) |
Shareholdings of the top ten shareholders | ||||||||||||||||||||||
Name of shareholders | Nature of shareholder | Percentage of Shareholdings (%) | Number of shares held | Number of shares with selling restrictions | Pledged, marked or frozen shares | |||||||||||||||||
Condition of shares | Number of shares | |||||||||||||||||||||
CNPC | State-owned Legal Person | 81.38 | | 148,933,827,108 | (2) | 0 | 0 | |||||||||||||||
HKSCC Nominees Limited(3) | Overseas Legal Person | 11.42 | | 20,900,264,314 | (4) | 0 | 0 | |||||||||||||||
CNPC-CSC-17 CNPC E2 Pledge and Trust Special Account | State-owned Legal Person | 2.09 | 3,819,963,834 | 0 | Pledged | 3,819,965,034 | ||||||||||||||||
Hong Kong Securities Clearing Company Limited (“HKSCC”)(5) | Overseas Legal Person | 0.56 | 1,020,808,062 | 0 | 0 | |||||||||||||||||
China Securities Finance Corporation Limited | State-owned Legal Person | 0.56 | 1,020,165,128 | 0 | 0 | |||||||||||||||||
China Metallurgical Group Corporation | State-owned Legal Person | 0.31 | 560,000,000 | 0 | 0 | |||||||||||||||||
Central Huijin Asset Management Ltd. | State-owned Legal Person | 0.11 | 201,695,000 | 0 | 0 | |||||||||||||||||
Bosera Fund - Ansteel Group Corporation - Bosera Fund Xin’an No.1 Single Asset Management Plan | State-owned Legal Person | 0.10 | 177,258,900 | 0 | 0 | |||||||||||||||||
Industrial and Commercial Bank of China Limited - SSE 50 Exchange Traded Index Securities Investment Fund | State-owned Legal Person | 0.05 | 90,342,599 | 0 | 0 | |||||||||||||||||
Shi Aizhong | Domestic Natural Person | 0.05 | 84,031,044 | 0 | 0 |
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Shareholdings of the top ten shareholders of shares without selling restrictions | ||||||||
Name of shareholders | Number of shares held | Type of shares | ||||||
CNPC | 148,933,827,108 | A shares | ||||||
HKSCC Nominees Limited | 20,900,264,314 | H shares | ||||||
CNPC-CSC-17 CNPC E2 Pledge and Trust Special Account | 3,819,963,834 | A shares | ||||||
Hong Kong Securities Clearing Company Limited | 1,020,808,062 | A shares | ||||||
China Securities Finance Corporation Limited | 1,020,165,128 | A shares | ||||||
China Metallurgical Group Corporation | 560,000,000 | A shares | ||||||
Central Huijin Asset Management Ltd. | 201,695,000 | A shares | ||||||
Bosera Fund - Ansteel Group Corporation - Bosera Fund Xin’an No.1 Single Asset Management Plan | 177,258,900 | A shares | ||||||
Industrial and Commercial Bank of China Limited - SSE 50 Exchange Traded Index Securities Investment Fund | 90,342,599 | A shares | ||||||
Shi Aizhong | 84,031,044 | A shares | ||||||
Statement on the connection or activities acting in concert among the above-mentioned shareholders:
Except for HKSCC Nominees Limited and HKSCC that are wholly-owned subsidiaries of Hong Kong Exchanges and Clearing Limited, the Company is not aware of any connection among or between the other top ten shareholders or that they are persons acting in concert as provided for in the Measures for the Administration of Acquisitions by Listed Companies. |
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Notes: (1) | The American Depository Shares program of the Company was terminated at 17:00 on October 17, 2022 (Eastern Time in the U.S.). |
(2) | Such figure excludes the H shares indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC. |
(3) | HKSCC Nominees Limited is a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited and acts as nominee on behalf of other corporate or individual shareholders to hold the H shares of the Company. |
(4) | 291,518,000 H shares were indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC, representing 0.16% of the total issued shares of the Company. These shares were held in the name of HKSCC Nominees Limited. |
(5) | HKSCC is a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited and acts as the nominee on behalf of investors of Hong Kong Stock Exchange to hold the A shares of the Company listed on Shanghai Stock Exchange. |
2.3 | Number of Shareholders of Preferred Shares, Shareholdings of Top Ten Shareholders of Preferred Shares and Shareholdings of Top Ten Shareholders of Preferred Shares without Selling Restrictions as at the End of the Reporting Period |
☐ Applicable ☒ Inapplicable
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2.4 | Business Review |
The world economy maintained a slow-paced growth during the first three quarters in 2022 due to the combined effects of geopolitical tensions, inflation, interest rate hikes in the United States and Europe, and repeated outbreaks of COVID-19 pandemic (“COVID-19”). The demand and supply of crude oil in international market maintained a tight balance, and the international crude oil price rose materially compared with the same period of last year, with the average spot price of North Sea Brent crude oil and the average spot price of the West Texas Intermediate (“WTI”) crude oil standing at US$105.51 per barrel and US$98.39 per barrel, representing a surge of 55.3% and 51.1% as compared with the same period of last year, respectively. The domestic macro-economy in China has been recovering steadily and the gross domestic product (“GDP”) increased by 3.0% in the first three quarters as compared to the same period of last year. As a result of the recurrence of COVID-19 in some areas, the demand for refined oil in domestic market declined, while the demand for natural gas in domestic market has been growing.
The Group conscientiously implemented the new development concept and the requirements for high-quality development, overcame the difficulties such as the recurrence of COVID-19 in some areas of China and the decline in market demand for refined oil, and coordinated epidemic prevention and control, production and operation, and reform and development. It vigorously strengthened exploration and development, and effectively guaranteed the supply of oil and gas on a safe and stable basis. The Group continued to deepen the specific project on the improvement of quality and profitability, continuously improved the ability to create profits and ensured stable production and operation. The operating results were the best compared with same period in past years owing to the surge in the prices of oil in international market. In the first three quarters of 2022, the average realised price for crude oil of the Group was US$95.19 per barrel, representing an increase of 51.9% as compared with the same period of last year, of which the domestic realised price was US$95.58 per barrel, representing an increase of 52.6% as compared with the same period of last year. The domestic average realised price for natural gas was US$7.78 per thousand cubic feet, representing an increase of 31.2% as compared with the same period of last year. According to IFRS, the Group generated a revenue of RMB2,455,401 million, representing an increase of 30.6% as compared with the same period of last year, and a net profit attributable to owners of the Company of RMB120,271 million, representing an increase of 60.1% as compared with the same period of last year. Net cash flow from operating activities increased by 38.3% as compared with the same period of last year, and the substantial growth in free cash flows maintained a sound financial position.
With respect to its domestic oil, gas and new energies business Note, the Group continued to explore with high efficiency, vigorously strengthened exploration and development, and actively promoted production capacity construction. Besides strengthening the stable production in old oil and gas fields, the Group accelerated the profitable production construction in new areas, and strived to increase recoverable reserves and cost-effective production with economies of scale. The Group implemented the requirements of carbon peak and carbon neutrality targets, and adhered to the integrated development between oil, gas and new energies. The Group solidly promoted new energies business such as wind power generation and photovoltaic power generation, geothermal, carbon capture, utilization and storage (CCUS). It also adhered to delicacy management and continued to strengthen cost control. In the first three quarters of 2022, the domestic crude oil output from the Group amounted to 576.9 million barrels, representing an increase of 2.7% as compared with the same period of last year. The marketable natural gas output from the Group amounted to 3,295.9 billion cubic feet, representing an increase of 5.1% as compared with the same period of last year. The oil and gas equivalent output amounted to 1,126.4 million barrels, representing an increase of 3.9% as compared with the same period of last year. In terms of its overseas business, by focusing on profitable exploration, delicacy development and optimised production and operation, the Group actively and steadily pushed forward the production and operation of key projects. In the first three quarters of 2022, the overseas crude oil output from the Group amounted to 100.1 million barrels, representing a decrease of 0.6%, which was primarily due to the surge in international oil prices and the decrease in product sharing of several overseas projects. The marketable natural gas output of the Group amounted to 148.9 billion cubic feet, representing an increase of 3.5% as compared with the same period of last year. The oil and gas equivalent output amounted to 125.0 million barrels, representing an increase of 0.2% as compared with the same period of last year. The overall crude oil output from the Group amounted to 677.0 million barrels, representing an increase of 2.2% as compared with the same period of last year. The overall marketable natural gas output of the Group amounted to 3,444.8 billion cubic feet, representing an increase of 5.0% as compared with the same period of last year. The oil and gas equivalent output amounted to 1,251.4 million barrels, representing an increase of 3.5% as compared with the same period of last year. The unit oil and gas lifting cost was US$11.73 per barrel, representing an increase of 3.3% as compared with the same period of last year, which was mainly due to the rise in material, power, operation fee and other basic operating costs. The oil, gas and new energies segment achieved in the first three quarters of 2022 an operating income of RMB688,759 million, representing an increase of 41.3%, and achieved an operating profit of RMB138,933 million, representing a surge of RMB 80,564 million as compared with the same period of last year.
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Note: Since the third quarter of 2022, the Exploration and Production Segment of the Group has been renamed as Oil, Gas and New Energies Segment, and the Refining and Chemicals Segment of the Group has been renamed as Refining, Chemicals and New Materials Segment.
Key Data of Oil, Gas and New Energies Business
Operating data | Unit | For the nine months ended September 30 | Changes over the same period of the preceding year (%) | |||||||||||
2022 | 2021 | |||||||||||||
Crude oil output | Million barrels | 677.0 | 662.3 | 2.2 | ||||||||||
of which: domestic | Million barrels | 576.9 | 561.6 | 2.7 | ||||||||||
overseas | Million barrels | 100.1 | 100.7 | (0.6 | ) | |||||||||
Marketable natural gas output | Billion cubic feet | 3,444.8 | 3,280.5 | 5.0 | ||||||||||
of which: domestic | Billion cubic feet | 3,295.9 | 3,136.6 | 5.1 | ||||||||||
overseas | Billion cubic feet | 148.9 | 143.9 | 3.5 | ||||||||||
Oil and gas equivalent output | Million barrels | 1,251.4 | 1,209.2 | 3.5 | ||||||||||
of which: domestic | Million barrels | 1,126.4 | 1,084.5 | 3.9 | ||||||||||
overseas | Million barrels | 125.0 | 124.7 | 0.2 |
Notes: Figures have been converted at the rate of 1 ton of crude oil = 7.389 barrels and 1 cubic metre of natural gas = 35.315 cubic feet.
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In respect of the refining, chemicals and new materials business, the Group, by adhering to the market-oriented approach, strengthened the connection between production and sales, so as to maintain the smooth operation of the industrial chain. With continued efforts to “reduce refined products and increase chemicals” and “reduce refined products and increase special products”, the Group continuously optimised product structure. Japan New Materials Research Institute was established for the purpose of strengthening the research and development of new materials and increasing the proportion of high-end special materials and high value-added products, which increased the output of new materials significantly. The Group continuously deepened benchmarking management and paid close attention to the whole process cost control. New progress was made in the construction of key projects, and the integration project of refining and chemicals of Guangdong Petrochemical entered the start-up preparation stage. In the first three quarters of 2022, the Group processed a total amount of 895.7 million barrels of crude oil, representing a decrease of 1.8% as compared with the same period of last year. The Group produced 77.456 million tons of gasoline, kerosene and diesel, representing a decrease of 4.8% as compared with the same period of last year. The output of chemical products amounted to 23.486 million tons, representing an increase of 3.5% as compared with the same period of last year. The refining, chemicals and new materials segment achieved an operating income of RMB879,521 million in the first three quarters in 2022, representing an increase of 24.6% as compared with the same period of last year, and an operating profit of RMB26,366 million, representing a decrease of 17.6% as compared with the same period of last year, of which the refining business recorded an operating income of RMB684,064 million, representing an increase of 28.3% as compared with the same period of last year, and an operating profit of RMB26,587 million, representing an increase of 32.1% as compared with the same period of last year. The chemical business achieved an operating income of RMB195,457 million, representing an increase of 13.2% as compared with the same period of last year, and recorded an operating loss of RMB221 million owing to the rise in the cost of raw materials, representing a decrease of RMB12,078 million as compared with the same period of last year.
Key Data of Refining, Chemicals and New Materials Business
Operating data | unit | For the nine months ended September 30 | Changes over the same period of the preceding year (%) | |||||||||||
2022 | 2021 | |||||||||||||
Processed crude oil | Million barrels | 895.7 | 911.9 | (1.8 | ) | |||||||||
Gasoline, kerosene, diesel output | ’000 ton | 77,456 | 81,327 | (4.8 | ) | |||||||||
of which: Gasoline | ’000 ton | 32,768 | 37,400 | (12.4 | ) | |||||||||
Kerosene | ’000 ton | 6,173 | 9,200 | (32.9 | ) | |||||||||
Diesel | ’000 ton | 38,515 | 34,727 | 10.9 | ||||||||||
Output of key chemical products | ||||||||||||||
Ethylene | ’000 ton | 5,498 | 4,756 | 15.6 | ||||||||||
Synthetic resin | ’000 ton | 8,623 | 7,834 | 10.1 | ||||||||||
Synthetic fibre raw materials and polymers | ’000 ton | 837 | 862 | (2.9 | ) | |||||||||
Synthetic rubber | ’000 ton | 795 | 761 | 4.5 | ||||||||||
Urea | ’000 ton | 1,995 | 1,802 | 10.7 |
Notes: Figures have been converted at the rate of 1 ton of crude oil = 7.389 barrels.
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The marketing segment of the Group strived to overcome the adverse impact of the recurrence of COVID-19 in some areas in China and the decrease in market demand for refined oil products, vigorously strengthened refined marketing and continuously optimised customer service. Efforts were made to expand sales, strengthen the connection between production and sales, and continuously optimise inventory management, so as to ensure smooth sales of products. By coordinating both domestic and international markets, the profitability of international trade was further enhanced. The Group actively developed its non-oil business in order to create new sources of profit growth. In the first three quarters of 2022, the Group recorded sales of 110.751 million tons of gasoline, kerosene and diesel, representing a decrease of 10.5% as compared with the same period of last year, of which the domestic sales of gasoline, kerosene and diesel amounted to 79.401 million tons, representing a decrease of 5.6% as compared with the same period of last year. The marketing segment recorded in the first three quarters of 2022 an operating income of RMB2,109,425 million, representing an increase of 35.4% as compared with the same period of last year. Affected by the decrease in the gross profit and sales volume of refined oil, the marketing segment achieved an operating profit of RMB7,242 million, representing a decrease of 17.5% as compared with the same period of last year.
Key Data of the Marketing Business
Operating Data | Unit | For the nine months ended September 30 | Changes over the same period of the preceding year (%) | |||||||||||
2022 | 2021 | |||||||||||||
Total sales volume of gasoline, kerosene and diesel | ’000 ton | 110,751 | 123,694 | (10.5 | ) | |||||||||
of which: Gasoline | ’000 ton | 44,025 | 50,621 | (13.0 | ) | |||||||||
Kerosene | ’000 ton | 9,548 | 12,217 | (21.8 | ) | |||||||||
Diesel | ’000 ton | 57,178 | 60,856 | (6.0 | ) | |||||||||
Domestic sales volume of gasoline, kerosene and diesel | ’000 ton | 79,401 | 84,106 | (5.6 | ) | |||||||||
of which: Gasoline | ’000 ton | 34,707 | 40,139 | (13.5 | ) | |||||||||
Kerosene | ’000 ton | 4,487 | 7,348 | (38.9 | ) | |||||||||
Diesel | ’000 ton | 40,207 | 36,619 | 9.8 |
Number of gas stations and convenience stores | Unit | As at September 30, 2022 | As at December 31, 2021 | Changes over the same period of the preceding year (%) | ||||||||||||
Number of gas stations | Unit | 22,681 | 22,800 | (0.5 | ) | |||||||||||
Number of convenience stores | Unit | 19,985 | 20,178 | (1.0 | ) |
The natural gas marketing business actively optimised the resource structure and strived to control procurement costs. It highlighted targeted marketing, increased online sales scale, actively expanded terminal retail market, and strived to enhance sales profitability. In the first three quarters of 2022, the Group sold 189.466 billion cubic metres of natural gas, representing a decrease of 4.7% as compared with the same period of last year, of which the domestic sales of natural gas amounted to 147.246 billion cubic metres, representing an increase of 6.6% over the same period of last year. The natural gas marketing segment achieved an operating income of RMB370,062 million in the first three quarters of 2022, representing an increase of 29.8% over the same period of last year, and realised an operating profit of RMB15,644 million, representing a decrease of 15.0% as compared with the same period of last after excluding the impact of the gains brought by the restructuring of pipeline assets last year. Such decrease was mainly due to the rising cost of imported natural gas.
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3. | Significant Events |
3.1 | Significant changes in key accounting items and financial indicators under CAS and explanation of such changes |
☒ Applicable ☐ Inapplicable
Unit: RMB Million
Items | For the nine months ended September 30 | Changes | Key explanation of the changes | |||||||||||
2022 | 2021 | |||||||||||||
Operating income | 2,455,401 | 1,880,341 | 30.6 | % | Mainly due to the increase in the sales of natural gas, chemical products and other products in domestic market and the surge in prices of some oil and gas products | |||||||||
Net profit attributable to equity holders of the Company | 120,266 | 75,122 | 60.1 | % | Mainly due to the increase in the sales of natural gas, chemical products and other products in domestic market, the surge in prices of some oil and gas products and effective control of costs | |||||||||
Net profit after deducting non-recurring profit/loss items attributable to equity holders of the Company | 129,607 | 68,244 | 89.9 | % | Mainly due to the substantial increase in the net profit attributable to equity holders of the Company together with gains from restructuring of pipelines assets in the preceding year | |||||||||
Net cash flows from operating activities | 313,548 | 226,747 | 38.3 | % | Mainly due to the increase in net profit and the change in working capital | |||||||||
Weighted average returns on net assets (%) | 9.11 | 6.05 | | 3.06 percentage points | | Mainly due to the substantial increase in the net profit attributable to equity holders of the Company | ||||||||
Basic earnings per share (RMB Yuan) | 0.66 | 0.41 | 60.1 | % | Due to the substantial increase in the net profit attributable to equity holders of the Company | |||||||||
Diluted earnings per share (RMB Yuan) | 0.66 | 0.41 | 60.1 | % | Due to the substantial increase in the net profit attributable to equity holders of the Company |
3.2 | Other Major Matters |
☐ Applicable ☒ Inapplicable
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4. | Financial statements for the third quarter of 2022 |
4.1 | Financial statements for the third quarter of 2022 prepared in accordance with CAS |
1. | Consolidated Balance Sheet |
ASSETS | September 30, 2022 | December 31, 2021 | ||||||
RMB million | RMB million | |||||||
Current assets | ||||||||
Cash at bank and on hand | 264,728 | 163,536 | ||||||
Derivative financial assets | 41,112 | 3,913 | ||||||
Accounts receivable | 98,557 | 52,746 | ||||||
Receivables financing | 8,363 | 3,975 | ||||||
Advances to suppliers | 27,385 | 14,598 | ||||||
Other receivables | 67,441 | 39,554 | ||||||
Inventories | 206,494 | 143,848 | ||||||
Other current assets | 55,909 | 58,668 | ||||||
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Total current assets | 769,989 | 480,838 | ||||||
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Non-current assets | ||||||||
Investments in other equity instruments | 787 | 1,176 | ||||||
Long-term equity investments | 272,906 | 265,884 | ||||||
Fixed assets | 400,069 | 418,837 | ||||||
Oil and gas properties | 797,546 | 816,788 | ||||||
Construction in progress | 247,470 | 223,671 | ||||||
Right-of-use assets | 135,284 | 139,359 | ||||||
Intangible assets | 90,692 | 90,587 | ||||||
Goodwill | 8,755 | 7,987 | ||||||
Long-term prepaid expenses | 10,489 | 11,391 | ||||||
Deferred tax assets | 16,167 | 12,161 | ||||||
Other non-current assets | 43,429 | 33,854 | ||||||
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Total non-current assets | 2,023,594 | 2,021,695 | ||||||
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TOTAL ASSETS | 2,793,583 | 2,502,533 | ||||||
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Chairman |
Director and President |
Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
12
1. | Consolidated Balance Sheet (Continued) |
LIABILITIES AND SHAREHOLDERS’ EQUITY | September 30, 2022 | December 31, 2021 | ||||||
RMB million | RMB million | |||||||
Current liabilities | ||||||||
Short-term borrowings | 53,465 | 40,010 | ||||||
Derivative financial liabilities | 37,101 | 3,881 | ||||||
Notes payable | 17,155 | 20,089 | ||||||
Accounts payable | 280,053 | 233,221 | ||||||
Contract liabilities | 84,920 | 78,481 | ||||||
Employee compensation payable | 22,000 | 8,975 | ||||||
Taxes payable | 76,394 | 76,774 | ||||||
Other payables | 108,489 | 28,493 | ||||||
Current portion of non-current liabilities | 56,559 | 19,893 | ||||||
Other current liabilities | 17,837 | 8,341 | ||||||
|
|
|
| |||||
Total current liabilities | 753,973 | 518,158 | ||||||
|
|
|
| |||||
Non-current liabilities | ||||||||
Long-term borrowings | 186,562 | 198,005 | ||||||
Debentures payable | 52,914 | 89,170 | ||||||
Lease liabilities | 120,517 | 123,222 | ||||||
Provisions | 134,686 | 129,405 | ||||||
Deferred tax liabilities | 22,660 | 26,654 | ||||||
Other non-current liabilities | 9,295 | 8,795 | ||||||
|
|
|
| |||||
Total non-current liabilities | 526,634 | 575,251 | ||||||
|
|
|
| |||||
Total liabilities | 1,280,607 | 1,093,409 | ||||||
|
|
|
| |||||
Shareholders’ equity | ||||||||
Share capital | 183,021 | 183,021 | ||||||
Capital surplus | 123,085 | 127,375 | ||||||
Special reserve | 12,009 | 9,231 | ||||||
Other comprehensive income | (19,406 | ) | (34,737 | ) | ||||
Surplus reserve | 211,970 | 211,970 | ||||||
Undistributed profits | 832,530 | 766,955 | ||||||
|
|
|
| |||||
Equity attributable to equity holders of the Company | 1,343,209 | 1,263,815 | ||||||
|
|
|
| |||||
Non-controlling interests | 169,767 | 145,309 | ||||||
|
|
|
| |||||
Total shareholders’ equity | 1,512,976 | 1,409,124 | ||||||
|
|
|
| |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,793,583 | 2,502,533 | ||||||
|
|
|
|
Chairman |
Director and President |
Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
13
2. | Company Balance Sheet |
ASSETS | September 30, 2022 | December 31, 2021 | ||||||
RMB million | RMB million | |||||||
Current assets | ||||||||
Cash at bank and on hand | 138,949 | 35,505 | ||||||
Accounts receivable | 14,900 | 7,429 | ||||||
Receivables financing | 8,062 | 3,598 | ||||||
Advances to suppliers | 16,425 | 6,273 | ||||||
Other receivables | 9,397 | 4,327 | ||||||
Inventories | 127,219 | 95,828 | ||||||
Other current assets | 43,979 | 44,442 | ||||||
|
|
|
| |||||
Total current assets | 358,931 | 197,402 | ||||||
|
|
|
| |||||
Non-current assets | ||||||||
Investments in other equity instruments | 313 | 388 | ||||||
Long-term equity investments | 469,388 | 461,462 | ||||||
Fixed assets | 246,155 | 259,790 | ||||||
Oil and gas properties | 604,185 | 622,093 | ||||||
Construction in progress | 167,577 | 150,829 | ||||||
Right-of-use assets | 60,390 | 61,889 | ||||||
Intangible assets | 68,771 | 68,884 | ||||||
Goodwill | 52 | 43 | ||||||
Long-term prepaid expenses | 7,521 | 8,384 | ||||||
Other non-current assets | 14,959 | 12,786 | ||||||
|
|
|
| |||||
Total non-current assets | 1,639,311 | 1,646,548 | ||||||
|
|
|
| |||||
TOTAL ASSETS | 1,998,242 | 1,843,950 | ||||||
|
|
|
|
Chairman |
Director and President |
Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
14
2. | Company Balance Sheet (Continued) |
LIABILITIES AND SHAREHOLDERS’ EQUITY | September 30, 2022 | December 31, 2021 | ||||||
RMB million | RMB million | |||||||
Current liabilities | ||||||||
Short-term borrowings | 21,046 | 23,328 | ||||||
Notes payable | 16,794 | 19,369 | ||||||
Accounts payable | 98,720 | 90,968 | ||||||
Contract liabilities | 59,017 | 57,698 | ||||||
Employee compensation payable | 17,265 | 6,669 | ||||||
Taxes payable | 41,783 | 51,615 | ||||||
Other payables | 170,779 | 72,324 | ||||||
Current portion of non-current liabilities | 45,333 | 8,644 | ||||||
Other current liabilities | 15,090 | 5,918 | ||||||
|
|
|
| |||||
Total current liabilities | 485,827 | 336,533 | ||||||
|
|
|
| |||||
Non-current liabilities | ||||||||
Long-term borrowings | 99,561 | 99,767 | ||||||
Debentures payable | 49,380 | 85,000 | ||||||
Lease liabilities | 46,810 | 47,976 | ||||||
Provisions | 94,544 | 90,941 | ||||||
Deferred tax liabilities | 1,889 | 7,914 | ||||||
Other non-current liabilities | 4,680 | 4,678 | ||||||
|
|
|
| |||||
Total non-current liabilities | 296,864 | 336,276 | ||||||
|
|
|
| |||||
Total liabilities | 782,691 | 672,809 | ||||||
|
|
|
| |||||
Shareholders’ equity | ||||||||
Share capital | 183,021 | 183,021 | ||||||
Capital surplus | 122,957 | 127,207 | ||||||
Special reserve | 6,957 | 4,829 | ||||||
Other comprehensive income | 840 | 250 | ||||||
Surplus reserve | 200,878 | 200,878 | ||||||
Undistributed profits | 700,898 | 654,956 | ||||||
|
|
|
| |||||
Total shareholders’ equity | 1,215,551 | 1,171,141 | ||||||
|
|
|
| |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,998,242 | 1,843,950 | ||||||
|
|
|
|
Chairman |
Director and President |
Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
15
3-1. | Consolidated Income Statement |
Item | Three months ended September 30 (July-September) | |||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
Operating income | 840,780 | 683,760 | ||||||
Less: Cost of sales | (673,348 | ) | (551,105 | ) | ||||
Taxes and surcharges | (73,243 | ) | (60,507 | ) | ||||
Selling expenses | (16,964 | ) | (18,385 | ) | ||||
General and administrative expenses | (13,117 | ) | (14,805 | ) | ||||
Research and development expenses | (4,816 | ) | (3,706 | ) | ||||
Finance expenses | (5,902 | ) | (4,111 | ) | ||||
Including: Interest expenses | (5,551 | ) | (4,630 | ) | ||||
Interest income | 1,068 | 451 | ||||||
Add: Other income | 3,724 | 1,479 | ||||||
Investment income | (6,072 | ) | 4,989 | |||||
Including: Income from investment in associates and joint ventures | 4,737 | 3,811 | ||||||
Gains or losses on changes in fair value | 6,869 | — | ||||||
Reversal of/(Losses on) credit impairment | 63 | (68 | ) | |||||
Asset impairment losses | (12 | ) | (75 | ) | ||||
Gain on asset disposal | 141 | 381 | ||||||
|
|
|
| |||||
Operating profit | 58,103 | 37,847 | ||||||
|
|
|
| |||||
Add: Non-operating income | 672 | 1,038 | ||||||
Less: Non-operating expenses | (3,759 | ) | (2,699 | ) | ||||
|
|
|
| |||||
Profit before taxation | 55,016 | 36,186 | ||||||
|
|
|
| |||||
Less: Taxation | (13,100 | ) | (10,947 | ) | ||||
|
|
|
| |||||
Net profit | 41,916 | 25,239 | ||||||
|
|
|
| |||||
Classified by continuity of operations: | ||||||||
Net profit from continuous operation | 41,916 | 25,239 | ||||||
Net profit from discontinued operation | — | — | ||||||
Classified by ownership: | ||||||||
Shareholders of the Company | 37,878 | 22,086 | ||||||
Non-controlling interests | 4,038 | 3,153 | ||||||
Earnings per share | ||||||||
Basic earnings per share (RMB Yuan) | 0.21 | 0.12 | ||||||
Diluted earnings per share (RMB Yuan) | 0.21 | 0.12 | ||||||
|
|
|
| |||||
Other comprehensive income, net of tax | 11,467 | (4,590 | ) | |||||
Other comprehensive income (net of tax) attributable to equity holders of the Company | 6,639 | (4,757 | ) | |||||
(1) Items that will not be reclassified to profit or loss: | ||||||||
Changes in fair value of investments in other equity instruments | (69 | ) | 64 | |||||
(2) Items that may be reclassified to profit or loss: | ||||||||
Other comprehensive income recognised under equity method | 491 | 242 | ||||||
Cash flow hedging reserve | 1,782 | — | ||||||
Translation differences arising from translation of foreign currency financial statements | 4,435 | (5,063 | ) | |||||
Other comprehensive income (net of tax) attributable to non-controlling interests | 4,828 | 167 | ||||||
|
|
|
| |||||
Total comprehensive income | 53,383 | 20,649 | ||||||
|
|
|
| |||||
Attributable to: | ||||||||
Equity holders of the Company | 44,517 | 17,329 | ||||||
Non-controlling interests | 8,866 | 3,320 | ||||||
|
|
|
|
Chairman |
Director and President |
Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
16
3-2. | Consolidated Income Statement |
Item | Nine months ended September 30 | |||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
Operating income | 2,455,401 | 1,880,341 | ||||||
Less: Cost of sales | (1,936,795 | ) | (1,508,745 | ) | ||||
Taxes and surcharges | (213,843 | ) | (162,591 | ) | ||||
Selling expenses | (49,736 | ) | (50,787 | ) | ||||
General and administrative expenses | (37,461 | ) | (41,227 | ) | ||||
Research and development expenses | (13,958 | ) | (11,994 | ) | ||||
Finance expenses | (15,086 | ) | (13,321 | ) | ||||
Including: Interest expenses | (15,195 | ) | (14,824 | ) | ||||
Interest income | 2,443 | 1,730 | ||||||
Add: Other income | 10,130 | 3,988 | ||||||
Investment income | (10,452 | ) | 31,202 | |||||
Including: Income from investment in associates and joint ventures | 12,841 | 11,244 | ||||||
Gains or losses on changes in fair value | (1,563 | ) | — | |||||
Credit losses | (440 | ) | (336 | ) | ||||
Asset impairment losses | (579 | ) | (549 | ) | ||||
Gain on asset disposal | 490 | 842 | ||||||
|
|
|
| |||||
Operating profit | 186,108 | 126,823 | ||||||
|
|
|
| |||||
Add: Non-operating income | 1,733 | 1,945 | ||||||
Less: Non-operating expenses | (14,493 | ) | (5,567 | ) | ||||
|
|
|
| |||||
Profit before taxation | 173,348 | 123,201 | ||||||
|
|
|
| |||||
Less: Taxation | (39,718 | ) | (30,146 | ) | ||||
|
|
|
| |||||
Net profit | 133,630 | 93,055 | ||||||
|
|
|
| |||||
Classified by continuity of operations: | ||||||||
Net profit from continuous operation | 133,630 | 93,055 | ||||||
Net profit from discontinued operation | — | — | ||||||
Classified by ownership: | ||||||||
Shareholders of the Company | 120,266 | 75,122 | ||||||
Non-controlling interests | 13,364 | 17,933 | ||||||
Earnings per share | ||||||||
Basic earnings per share (RMB Yuan) | 0.66 | 0.41 | ||||||
Diluted earnings per share (RMB Yuan) | 0.66 | 0.41 | ||||||
|
|
|
| |||||
Other comprehensive income, net of tax | 23,273 | (7,772 | ) | |||||
Other comprehensive income (net of tax) attributable to equity holders of the Company | 15,326 | (7,119 | ) | |||||
(1) Items that will not be reclassified to profit or loss: | ||||||||
Changes in fair value of investments in other equity instruments | (158 | ) | 65 | |||||
(2) Items that may be reclassified to profit or loss: | ||||||||
Other comprehensive income recognised under equity method | 714 | 173 | ||||||
Cash flow hedging reserve | 8,421 | — | ||||||
Translation differences arising from translation of foreign currency financial statements | 6,349 | (7,357 | ) | |||||
Other comprehensive income (net of tax) attributable to non-controlling interests | 7,947 | (653 | ) | |||||
|
|
|
| |||||
Total comprehensive income | 156,903 | 85,283 | ||||||
|
|
|
| |||||
Attributable to: | ||||||||
Equity holders of the Company | 135,592 | 68,003 | ||||||
Non-controlling interests | 21,311 | 17,280 | ||||||
|
|
|
|
Chairman |
Director and President |
Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
17
4-1. | Income Statement |
Item | Three months ended September 30 (July-September) | |||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
Operating income | 440,600 | 355,661 | ||||||
Less: Cost of sales | (336,030 | ) | (260,260 | ) | ||||
Taxes and surcharges | (54,959 | ) | (45,976 | ) | ||||
Selling expenses | (12,770 | ) | (12,799 | ) | ||||
General and administrative expenses | (7,918 | ) | (9,394 | ) | ||||
Research and development expenses | (3,618 | ) | (2,632 | ) | ||||
Finance expenses | (3,161 | ) | (3,512 | ) | ||||
Including: Interest expenses | (3,749 | ) | (3,610 | ) | ||||
Interest income | 513 | 195 | ||||||
Add: Other income | 3,660 | 1,329 | ||||||
Investment income | 11,393 | 5,679 | ||||||
Including: Income from investment in associates and joint ventures | 3,517 | 2,884 | ||||||
Credit losses | — | (85 | ) | |||||
Asset impairment losses | (3 | ) | (59 | ) | ||||
Gains on asset disposal | 99 | 369 | ||||||
|
|
|
| |||||
Operating profit | 37,293 | 28,321 | ||||||
|
|
|
| |||||
Add: Non-operating income | 523 | 741 | ||||||
Less: Non-operating expenses | (3,298 | ) | (2,182 | ) | ||||
|
|
|
| |||||
Profit before taxation | 34,518 | 26,880 | ||||||
|
|
|
| |||||
Less: Taxation | (3,289 | ) | (6,198 | ) | ||||
|
|
|
| |||||
Net profit | 31,229 | 20,682 | ||||||
|
|
|
| |||||
Classified by continuity of operations: | ||||||||
Net profit from continuous operation | 31,229 | 20,682 | ||||||
Net profit from discontinued operation | — | — | ||||||
Earnings per share | ||||||||
Basic earnings per share (RMB Yuan) | 0.17 | 0.11 | ||||||
Diluted earnings per share (RMB Yuan) | 0.17 | 0.11 | ||||||
Other comprehensive income, net of tax | 329 | 36 | ||||||
Other comprehensive income (net of tax) attributable to equity holders of the Company | 329 | 36 | ||||||
(1) Items that will not be reclassified to profit or loss: | ||||||||
Changes in fair value of investments in other equity instruments | (29 | ) | 3 | |||||
(2) Items that may be reclassified to profit or loss: | ||||||||
Other comprehensive income recognised under equity method | 358 | 33 | ||||||
|
|
|
| |||||
Total comprehensive income | 31,558 | 20,718 | ||||||
|
|
|
|
|
|
| ||
Chairman | Director and President | Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
18
4-2. | Income Statement |
Item | Nine months ended September 30 | |||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
Operating income | 1,272,367 | 1,016,474 | ||||||
Less: Cost of sales | (953,363 | ) | (757,839 | ) | ||||
Taxes and surcharges | (161,554 | ) | (126,404 | ) | ||||
Selling expenses | (35,315 | ) | (35,080 | ) | ||||
General and administrative expenses | (22,665 | ) | (26,570 | ) | ||||
Research and development expenses | (11,292 | ) | (9,729 | ) | ||||
Finance expenses | (9,855 | ) | (11,207 | ) | ||||
Including: Interest expenses | (10,930 | ) | (11,326 | ) | ||||
Interest income | 983 | 456 | ||||||
Add: Other income | 9,814 | 2,927 | ||||||
Investment income | 34,577 | 19,445 | ||||||
Including: Income from investment in associates and joint ventures | 9,624 | 8,423 | ||||||
Credit losses | (45 | ) | (113 | ) | ||||
Asset impairment losses | (28 | ) | (95 | ) | ||||
Gains on asset disposal | 356 | 792 | ||||||
|
|
|
| |||||
Operating profit | 122,997 | 72,601 | ||||||
|
|
|
| |||||
Add: Non-operating income | 1,425 | 1,433 | ||||||
Less: Non-operating expenses | (11,680 | ) | (4,603 | ) | ||||
|
|
|
| |||||
Profit before taxation | 112,742 | 69,431 | ||||||
|
|
|
| |||||
Less: Taxation | (12,113 | ) | (14,544 | ) | ||||
|
|
|
| |||||
Net profit | 100,629 | 54,887 | ||||||
|
|
|
| |||||
Classified by continuity of operations: | ||||||||
Net profit from continuous operation | 100,629 | 54,887 | ||||||
Net profit from discontinued operation | — | — | ||||||
Earnings per share | ||||||||
Basic earnings per share (RMB Yuan) | 0.55 | 0.30 | ||||||
Diluted earnings per share (RMB Yuan) | 0.55 | 0.30 | ||||||
Other comprehensive income, net of tax | 477 | (93 | ) | |||||
Other comprehensive income (net of tax) attributable to equity holders of the Company | 477 | (93 | ) | |||||
(1) Items that will not be reclassified to profit or loss: | ||||||||
Changes in fair value of investments in other equity instruments | (52 | ) | (23 | ) | ||||
(2) Items that may be reclassified to profit or loss: | ||||||||
Other comprehensive income recognised under equity method | 529 | (70 | ) | |||||
|
|
|
| |||||
Total comprehensive income | 101,106 | 54,794 | ||||||
|
|
|
|
|
|
| ||
Chairman | Director and President | Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
19
5. | Consolidated Cash Flow Statement |
Item | Nine months ended September 30 | |||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
Cash flows from operating activities | ||||||||
Cash received from sales of goods and rendering of services | 2,534,856 | 2,185,778 | ||||||
Cash received relating to other operating activities | 194,268 | 5,013 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 2,729,124 | 2,190,791 | ||||||
|
|
|
| |||||
Cash paid for goods and services | (1,724,003 | ) | (1,593,822 | ) | ||||
Cash paid to and on behalf of employees | (102,468 | ) | (99,935 | ) | ||||
Payments of various taxes | (356,313 | ) | (248,692 | ) | ||||
Cash paid relating to other operating activities | (232,792 | ) | (21,595 | ) | ||||
|
|
|
| |||||
Sub-total of cash outflows | (2,415,576 | ) | (1,964,044 | ) | ||||
|
|
|
| |||||
Net cash flows from operating activities | 313,548 | 226,747 | ||||||
|
|
|
| |||||
Cash flows from investing activities | ||||||||
Cash received from disposal of investments | 30,355 | 20,339 | ||||||
Cash received from returns on investments | 12,016 | 13,829 | ||||||
Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and other long-term assets | 362 | 2,881 | ||||||
Net cash received from disposal of subsidiaries and other business units | 3,855 | 33,457 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 46,588 | 70,506 | ||||||
|
|
|
| |||||
Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term assets | (158,270 | ) | (169,952 | ) | ||||
Cash paid to acquire investments | (30,389 | ) | (29,618 | ) | ||||
Net cash paid to acquire subsidiaries and other business units | (333 | ) | — | |||||
|
|
|
| |||||
Sub-total of cash outflows | (188,992 | ) | (199,570 | ) | ||||
|
|
|
| |||||
Net cash flows used for investing activities | (142,404 | ) | (129,064 | ) | ||||
|
|
|
| |||||
Cash flows from financing activities | ||||||||
Cash received from capital contributions | 293 | 4 | ||||||
Including: Cash received from non-controlling interests’ capital contributions to subsidiaries | 293 | 4 | ||||||
Cash received from borrowings | 674,436 | 614,821 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 674,729 | 614,825 | ||||||
|
|
|
| |||||
Cash repayments of borrowings | (682,182 | ) | (605,680 | ) | ||||
Cash payments for interest expenses and distribution of dividends or profits | (63,866 | ) | (43,487 | ) | ||||
Including: Subsidiaries’ cash payments for distribution of dividends or profits to non-controlling interests | (4,119 | ) | (15,107 | ) | ||||
Cash payments relating to other financing activities | (10,096 | ) | (8,551 | ) | ||||
|
|
|
| |||||
Sub-total of cash outflows | (756,144 | ) | (657,718 | ) | ||||
|
|
|
| |||||
Net cash flows used for financing activities | (81,415 | ) | (42,893 | ) | ||||
|
|
|
| |||||
Effect of foreign exchange rate changes on cash and cash equivalents | 8,746 | (841 | ) | |||||
|
|
|
| |||||
Net increase in cash and cash equivalents | 98,475 | 53,949 | ||||||
Add: Cash and cash equivalents at beginning of the period | 136,789 | 118,631 | ||||||
|
|
|
| |||||
Cash and cash equivalents at the end of the period | 235,264 | 172,580 | ||||||
|
|
|
|
|
|
| ||
Chairman | Director and President | Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
20
6. | Company Cash Flow Statement |
Item | Nine months ended September 30 | |||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
Cash flows from operating activities | ||||||||
Cash received from sales of goods and rendering of services | 1,415,065 | 1,276,465 | ||||||
Cash received relating to other operating activities | 11,125 | 4,049 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 1,426,190 | 1,280,514 | ||||||
|
|
|
| |||||
Cash paid for goods and services | (850,640 | ) | (823,672 | ) | ||||
Cash paid to and on behalf of employees | (74,093 | ) | (71,981 | ) | ||||
Payments of various taxes | (253,751 | ) | (202,874 | ) | ||||
Cash paid relating to other operating activities | (29,975 | ) | (18,822 | ) | ||||
|
|
|
| |||||
Sub-total of cash outflows | (1,208,459 | ) | (1,117,349 | ) | ||||
|
|
|
| |||||
Net cash flows from operating activities | 217,731 | 163,165 | ||||||
|
|
|
| |||||
Cash flows from investing activities | ||||||||
Cash received from disposal of investments | 2,827 | 5,543 | ||||||
Cash received from returns on investments | 54,801 | 28,433 | ||||||
Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and other long-term assets | 221 | 2,772 | ||||||
|
|
|
| |||||
Net cash received from disposal of subsidiaries and other business units | 392 | — | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 58,241 | 36,748 | ||||||
|
|
|
| |||||
Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term assets | (102,291 | ) | (118,025 | ) | ||||
Cash paid to acquire investments | (5,814 | ) | (8,104 | ) | ||||
|
|
|
| |||||
Sub-total of cash outflows | (108,105 | ) | (126,129 | ) | ||||
|
|
|
| |||||
Net cash flows used for investing activities | (49,864 | ) | (89,381 | ) | ||||
|
|
|
| |||||
Cash flows from financing activities | ||||||||
Cash received from borrowings | 99,208 | 131,844 | ||||||
|
|
|
| |||||
Sub-total of cash inflows | 99,208 | 131,844 | ||||||
|
|
|
| |||||
Cash repayments of borrowings | (101,514 | ) | (152,311 | ) | ||||
Cash payments for interest expenses and distribution of dividends or profits | (58,720 | ) | (26,533 | ) | ||||
Cash payments relating to other financing activities | (1,847 | ) | (3,878 | ) | ||||
|
|
|
| |||||
Sub-total of cash outflows | (162,081 | ) | (182,722 | ) | ||||
|
|
|
| |||||
Net cash flows used for financing activities | (62,873 | ) | (50,878 | ) | ||||
|
|
|
| |||||
Net increase in cash and cash equivalents | 104,994 | 22,906 | ||||||
Add: Cash and cash equivalents at beginning of the period | 31,955 | 40,787 | ||||||
|
|
|
| |||||
Cash and cash equivalents at the end of the period | 136,949 | 63,693 | ||||||
|
|
|
|
|
|
| ||
Chairman | Director and President | Chief Financial Officer | ||
Dai Houliang | Huang Yongzhang | Wang Hua |
21
4.2 | Financial statements for the third quarter of 2022 prepared in accordance with IFRS |
1-1. | Consolidated Statement of Comprehensive Income |
Three months ended September 30 (July-September) | ||||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
REVENUE | 840,780 | 683,760 | ||||||
|
|
|
| |||||
OPERATING EXPENSES | ||||||||
Purchases, services and other | (596,888 | ) | (481,620 | ) | ||||
Employee compensation costs | (39,629 | ) | (40,860 | ) | ||||
Exploration expenses, including exploratory dry holes | (5,994 | ) | (2,721 | ) | ||||
Depreciation, depletion and amortisation | (50,596 | ) | (47,471 | ) | ||||
Selling, general and administrative expenses | (15,120 | ) | (15,328 | ) | ||||
Taxes other than income taxes | (73,584 | ) | (60,853 | ) | ||||
Other (expense)/income net | (3,127 | ) | 1,393 | |||||
|
|
|
| |||||
TOTAL OPERATING EXPENSES | (784,938 | ) | (647,460 | ) | ||||
|
|
|
| |||||
PROFIT FROM OPERATIONS | 55,842 | 36,300 | ||||||
|
|
|
| |||||
FINANCE COSTS | ||||||||
Exchange gain | 10,156 | 2,332 | ||||||
Exchange loss | (11,234 | ) | (2,075 | ) | ||||
Interest income | 1,068 | 451 | ||||||
Interest expense | (5,551 | ) | (4,630 | ) | ||||
|
|
|
| |||||
TOTAL NET FINANCE COSTS | (5,561 | ) | (3,922 | ) | ||||
|
|
|
| |||||
SHARE OF PROFIT OF ASSOCIATES AND JOINT VENTURES | 4,737 | 3,811 | ||||||
|
|
|
| |||||
PROFIT BEFORE INCOME TAX EXPENSE | 55,018 | 36,189 | ||||||
INCOME TAX EXPENSE | (13,100 | ) | (10,947 | ) | ||||
|
|
|
| |||||
PROFIT FOR THE PERIOD | 41,918 | 25,242 | ||||||
|
|
|
| |||||
OTHER COMPREHENSIVE INCOME | ||||||||
(1) Item that will not be reclassified to profit or loss: | ||||||||
Fair value changes in equity investment measured at fair value through other comprehensive income | (134 | ) | 64 | |||||
(2) Item that are or may be reclassified subsequently to profit or loss: | ||||||||
Cash flow hedging reserve | 1,782 | — | ||||||
Currency translation differences | 9,328 | (4,896 | ) | |||||
Share of the other comprehensive income of associates and joint ventures accounted for using the equity method | 491 | 242 | ||||||
|
|
|
| |||||
OTHER COMPREHENSIVE INCOME, NET OF TAX | 11,467 | (4,590 | ) | |||||
|
|
|
| |||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 53,385 | 20,652 | ||||||
|
|
|
| |||||
PROFIT FOR THE PERIOD ATTRIBUTABLE TO: | ||||||||
Owners of the Company | 37,880 | 22,089 | ||||||
Non-controlling interests | 4,038 | 3,153 | ||||||
|
|
|
| |||||
41,918 | 25,242 | |||||||
|
|
|
| |||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: | ||||||||
Owners of the Company | 44,519 | 17,332 | ||||||
Non-controlling interests | 8,866 | 3,320 | ||||||
|
|
|
| |||||
53,385 | 20,652 | |||||||
|
|
|
| |||||
BASIC AND DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (RMB YUAN) | �� | 0.21 | 0.12 | |||||
|
|
|
|
22
1-2. | Consolidated Statement of Comprehensive Income |
Nine months ended September 30 | ||||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
REVENUE | 2,455,401 | 1,880,341 | ||||||
|
|
|
| |||||
OPERATING EXPENSES | ||||||||
Purchases, services and other | (1,708,419 | ) | (1,290,552 | ) | ||||
Employee compensation costs | (114,556 | ) | (107,688 | ) | ||||
Exploration expenses, including exploratory dry holes | (18,833 | ) | (13,862 | ) | ||||
Depreciation, depletion and amortisation | (153,459 | ) | (155,826 | ) | ||||
Selling, general and administrative expenses | (43,529 | ) | (45,654 | ) | ||||
Taxes other than income taxes | (214,815 | ) | (163,264 | ) | ||||
Other (expense)/income net | (26,933 | ) | 21,268 | |||||
|
|
|
| |||||
TOTAL OPERATING EXPENSES | (2,280,544 | ) | (1,755,578 | ) | ||||
|
|
|
| |||||
PROFIT FROM OPERATIONS | 174,857 | 124,763 | ||||||
|
|
|
| |||||
FINANCE COSTS | ||||||||
Exchange gain | 19,076 | 10,139 | ||||||
Exchange loss | (20,669 | ) | (9,847 | ) | ||||
Interest income | 2,443 | 1,730 | ||||||
Interest expense | (15,195 | ) | (14,824 | ) | ||||
|
|
|
| |||||
TOTAL NET FINANCE COSTS | (14,345 | ) | (12,802 | ) | ||||
|
|
|
| |||||
SHARE OF PROFIT OF ASSOCIATES AND JOINT VENTURES | 12,841 | 11,244 | ||||||
|
|
|
| |||||
PROFIT BEFORE INCOME TAX EXPENSE | 173,353 | 123,205 | ||||||
INCOME TAX EXPENSE | (39,718 | ) | (30,146 | ) | ||||
|
|
|
| |||||
PROFIT FOR THE PERIOD | 133,635 | 93,059 | ||||||
|
|
|
| |||||
OTHER COMPREHENSIVE INCOME | ||||||||
(1) Item that will not be reclassified to profit or loss: | ||||||||
Fair value changes in equity investment measured at fair value through other comprehensive income | (302 | ) | 79 | |||||
(2) Item that are or may be reclassified subsequently to profit or loss: | ||||||||
Cash flow hedging reserve | 8,421 | — | ||||||
Currency translation differences | 14,440 | (8,024 | ) | |||||
Share of the other comprehensive income of associates and joint ventures accounted for using the equity method | 714 | 173 | ||||||
|
|
|
| |||||
OTHER COMPREHENSIVE INCOME, NET OF TAX | 23,273 | (7,772 | ) | |||||
|
|
|
| |||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | 156,908 | 85,287 | ||||||
|
|
|
| |||||
PROFIT FOR THE PERIOD ATTRIBUTABLE TO: | ||||||||
Owners of the Company | 120,271 | 75,126 | ||||||
Non-controlling interests | 13,364 | 17,933 | ||||||
|
|
|
| |||||
133,635 | 93,059 | |||||||
|
|
|
| |||||
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO: | ||||||||
Owners of the Company | 135,597 | 68,007 | ||||||
Non-controlling interests | 21,311 | 17,280 | ||||||
|
|
|
| |||||
156,908 | 85,287 | |||||||
|
|
|
| |||||
BASIC AND DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY (RMB YUAN) | 0.66 | 0.41 | ||||||
|
|
|
|
23
2. | Consolidated Statement of Financial Position |
September 30, 2022 | December 31, 2021 | |||||||
RMB million | RMB million | |||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment | 1,445,085 | 1,459,296 | ||||||
Investments in associates and joint ventures | 272,805 | 265,785 | ||||||
Equity investments measured at fair value through other comprehensive income | 779 | 1,168 | ||||||
Right-of-use assets | 205,049 | 208,606 | ||||||
Intangible and other non-current assets | 79,143 | 66,344 | ||||||
Deferred tax assets | 16,167 | 12,161 | ||||||
Time deposits with maturities over one year | 4,299 | 8,064 | ||||||
|
|
|
| |||||
TOTAL NON-CURRENT ASSETS | 2,023,327 | 2,021,424 | ||||||
|
|
|
| |||||
CURRENT ASSETS | ||||||||
Inventories | 206,494 | 143,848 | ||||||
Accounts receivable | 98,557 | 52,746 | ||||||
Derivative financial assets | 41,112 | 3,913 | ||||||
Prepayments and other current assets | 150,735 | 112,820 | ||||||
Financial assets at fair value through other comprehensive income | 8,363 | 3,975 | ||||||
Time deposits with maturities over three months but within one year | 29,464 | 26,747 | ||||||
Cash and cash equivalents | 235,264 | 136,789 | ||||||
|
|
|
| |||||
TOTAL CURRENT ASSETS | 769,989 | 480,838 | ||||||
|
|
|
| |||||
CURRENT LIABILITIES | ||||||||
Accounts payable and accrued liabilities | 445,536 | 299,121 | ||||||
Contract liabilities | 84,920 | 78,481 | ||||||
Income taxes payable | 19,211 | 9,915 | ||||||
Other taxes payable | 57,183 | 66,859 | ||||||
Short-term borrowings | 102,734 | 53,275 | ||||||
Derivative financial liabilities | 37,101 | 3,881 | ||||||
Lease liabilities | 7,288 | 6,626 | ||||||
|
|
|
| |||||
TOTAL CURRENT LIABILITIES | 753,973 | 518,158 | ||||||
|
|
|
| |||||
NET CURRENT ASSETS/(LIABILITIES) | 16,016 | (37,320 | ) | |||||
|
|
|
| |||||
TOTAL ASSETS LESS CURRENT LIABILITIES | 2,039,343 | 1,984,104 | ||||||
|
|
|
| |||||
EQUITY | ||||||||
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY: | ||||||||
Share capital | 183,021 | 183,021 | ||||||
Retained earnings | 837,560 | 771,980 | ||||||
Reserves | 322,378 | 308,560 | ||||||
|
|
|
| |||||
TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY | 1,342,959 | 1,263,561 | ||||||
NON-CONTROLLING INTERESTS | 169,766 | 145,308 | ||||||
|
|
|
| |||||
TOTAL EQUITY | 1,512,725 | 1,408,869 | ||||||
|
|
|
| |||||
NON-CURRENT LIABILITIES | ||||||||
Long-term borrowings | 239,476 | 287,175 | ||||||
Asset retirement obligations | 134,686 | 129,405 | ||||||
Lease liabilities | 120,517 | 123,222 | ||||||
Deferred tax liabilities | 22,644 | 26,638 | ||||||
Other long-term obligations | 9,295 | 8,795 | ||||||
|
|
|
| |||||
TOTAL NON-CURRENT LIABILITIES | 526,618 | 575,235 | ||||||
|
|
|
| |||||
TOTAL EQUITY AND NON-CURRENT LIABILITIES | 2,039,343 | 1,984,104 | ||||||
|
|
|
|
24
3. | Consolidated Statement of Cash Flows |
Nine months ended September 30 | ||||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Profit for the period | 133,635 | 93,059 | ||||||
Adjustments for: | ||||||||
Income tax expense | 39,718 | 30,146 | ||||||
Depreciation, depletion and amortisation | 153,459 | 155,826 | ||||||
Capitalised exploratory costs charged to expense | 11,619 | 5,574 | ||||||
Safety fund reserve | 2,864 | 1,657 | ||||||
Share of profit of associates and joint ventures | (12,841 | ) | (11,244 | ) | ||||
Accrual of provision for impairment of receivables, net | 439 | 336 | ||||||
Write down in inventories, net | 574 | 59 | ||||||
Impairment of other non-current assets | — | 490 | ||||||
Loss on disposal and scrap of property, plant and equipment | 7,923 | 576 | ||||||
Gain on disposal and scrap of other non-current assets | (309 | ) | (524 | ) | ||||
Gain on disposal of subsidiaries | (60 | ) | (18,928 | ) | ||||
Fair value loss | 1,563 | — | ||||||
Dividend income | (2 | ) | (17 | ) | ||||
Interest income | (2,443 | ) | (1,730 | ) | ||||
Interest expense | 15,195 | 14,824 | ||||||
Changes in working capital: | ||||||||
Accounts receivable, prepayments and other current assets | (89,591 | ) | (34,293 | ) | ||||
Inventories | (63,220 | ) | (19,477 | ) | ||||
Accounts payable and accrued liabilities | 158,005 | 35,683 | ||||||
Contract liabilities | 6,439 | (1,845 | ) | |||||
|
|
|
| |||||
CASH FLOWS GENERATED FROM OPERATIONS | 362,967 | 250,172 | ||||||
Income taxes paid | (49,419 | ) | (23,425 | ) | ||||
|
|
|
| |||||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 313,548 | 226,747 | ||||||
|
|
|
|
25
3. | Consolidated Statement of Cash Flows (Continued) |
Nine months ended September 30 | ||||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Capital expenditures | (157,868 | ) | (169,378 | ) | ||||
Acquisition of investments in associates and joint ventures | (1,103 | ) | (3,546 | ) | ||||
Prepayments on long-term leases | — | (81 | ) | |||||
Acquisition of intangible assets and other non-current assets | (402 | ) | (493 | ) | ||||
Acquisition of subsidiaries | (333 | ) | — | |||||
Proceeds from disposal of property, plant and equipment | 89 | 2,546 | ||||||
Proceeds from disposal of other non-current assets | 291 | 335 | ||||||
Proceeds from disposal of investments and investments in associates | 3,855 | 33,457 | ||||||
Interest received | 1,765 | 1,944 | ||||||
Dividends received | 10,251 | 11,885 | ||||||
Decrease/(Increase) in time deposits with maturities over three months | 1,051 | (5,733 | ) | |||||
|
|
|
| |||||
NET CASH FLOWS USED FOR INVESTING ACTIVITIES | (142,404 | ) | (129,064 | ) | ||||
|
|
|
| |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Repayments of short-term borrowings | (594,481 | ) | (566,376 | ) | ||||
Repayments of long-term borrowings | (87,701 | ) | (39,304 | ) | ||||
Repayments of lease liabilities | (10,096 | ) | (8,551 | ) | ||||
Interest paid | (9,337 | ) | (10,410 | ) | ||||
Dividends paid to non-controlling interests | (4,119 | ) | (15,107 | ) | ||||
Dividends paid to owners of the Company | (50,410 | ) | (17,970 | ) | ||||
Increase in short-term borrowings | 605,048 | 517,860 | ||||||
Increase in long-term borrowings | 69,388 | 96,961 | ||||||
Cash contribution from non-controlling interests | 293 | 4 | ||||||
|
|
|
| |||||
NET CASH FLOWS USED FOR FINANCING ACTIVITIES | (81,415 | ) | (42,893 | ) | ||||
|
|
|
| |||||
TRANSLATION OF FOREIGN CURRENCY | 8,746 | (841 | ) | |||||
|
|
|
| |||||
Increase in cash and cash equivalents | 98,475 | 53,949 | ||||||
Cash and cash equivalents at beginning of the period | 136,789 | 118,631 | ||||||
|
|
|
| |||||
Cash and cash equivalents at end of the period | 235,264 | 172,580 | ||||||
|
|
|
|
26
4. | Segment Information |
Nine months ended September 30 | ||||||||
2022 | 2021 | |||||||
RMB million | RMB million | |||||||
Revenue | ||||||||
Oil, Gas and New Energies(1) | ||||||||
Intersegment sales | 578,823 | 405,980 | ||||||
Revenue from external customers | 109,936 | 81,499 | ||||||
|
|
|
| |||||
688,759 | 487,479 | |||||||
Refining, Chemicals and New Materials(1) | ||||||||
Intersegment sales | 624,806 | 461,359 | ||||||
Revenue from external customers | 254,715 | 244,452 | ||||||
|
|
|
| |||||
879,521 | 705,811 | |||||||
Marketing | ||||||||
Intersegment sales | 374,681 | 275,318 | ||||||
Revenue from external customers | 1,734,744 | 1,282,311 | ||||||
|
|
|
| |||||
2,109,425 | 1,557,629 | |||||||
Natural Gas Marketing | ||||||||
Intersegment sales | 15,741 | 14,040 | ||||||
Revenue from external customers | 354,321 | 270,983 | ||||||
|
|
|
| |||||
370,062 | 285,023 | |||||||
Head Office and Other | ||||||||
Intersegment sales | 188 | 107 | ||||||
Revenue from external customers | 1,685 | 1,096 | ||||||
|
|
|
| |||||
1,873 | 1,203 | |||||||
Total revenue from external customers | 2,455,401 | 1,880,341 | ||||||
|
|
|
| |||||
Profit/(loss) from operations | ||||||||
Oil, Gas and New Energies(1) | 138,933 | 58,369 | ||||||
Refining, Chemicals and New Materials(1) | 26,366 | 31,990 | ||||||
Marketing | 7,242 | 8,776 | ||||||
Natural Gas Marketing | 15,644 | 36,715 | ||||||
Head Office and Other | (13,328 | ) | (11,087 | ) | ||||
|
|
|
| |||||
174,857 | 124,763 | |||||||
|
|
|
|
Note (1): | Since the third quarter of 2022, the Exploration and Production Segment has been renamed as Oil, Gas and New Energies Segment, and the Refining and Chemicals Segment has been renamed as Refining, Chemicals and New Materials Segment in the segment information of the Group. |
4.3 | Auditor’s Report |
If the quarterly report is audited by a certified public accountant, the appendix should disclose the body of the auditor’s report.
☐ Applicable ☒ Inapplicable
27
By Order of the Board of Directors
PetroChina Company Limited
Dai Houliang
Chairman
Beijing, the PRC
October 27, 2022
As at the date of this announcement, the Board of Directors of the Company comprises Mr. Dai Houliang as the Chairman; Mr. Hou Qijun as Vice Chairman and non-executive Director; Mr. Duan Liangwei and Mr. Xie Jun as non-executive Directors; Mr. Jiao Fangzheng, Mr. Huang Yongzhang and Mr. Ren Lixin as executive Directors; and Ms. Elsie Leung Oi-sie, Mr. Tokuchi Tatsuhito, Mr. Cai Jinyong and Mr. Jiang, Simon X. as independent non-executive Directors.
This announcement is published in English and Chinese. In the event of any inconsistency between the two versions, the Chinese version shall prevail.
28