Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of October 2023

Commission File Number: 1-12158

 

 

Sinopec Shanghai Petrochemical Company Limited

(Translation of registrant’s name into English)

 

 

No. 48 Jinyi Road, Jinshan District, Shanghai, 200540

The People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒   Form 40-F ☐

 

 

 

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EXHIBITS

 

Exhibit Number
99.1		2023 Third Quarterly Report
99.2		Major Operating Data of the 2023 First Three Quarters

Disclaimer—Forward-Looking Statements

We may, in this document, make certain statements that are not historical facts and relate to analyses and other information which are based on forecasts of future results and estimates of amounts not yet determinable. These statements may also relate to our future prospects, expectations, developments and business strategies. Words such as “believe”, “anticipate”, “expect”, “intend”, “seek”, “will”, “plan”, “could”, “may”, “endeavor”, “target”, “forecast” and “project” and similar expressions are intended to identify such forward-looking statements but are not the exclusive means of identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections, and other forward-looking statements will not be achieved. If one or more of these risks materialize, or should underlying assumptions prove incorrect, our actual results may differ materially from those anticipated. You should understand that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors and others are discussed more fully under the section titled “Item 3. Key Information—C. Risk Factors” in our most recent annual report on Form 20-F filed on April 26, 2023, and in other filings with the United States Securities and Exchange Commission. The list of factors discussed therein is not exhaustive; when relying on forward-looking statements to make investment decisions, you should carefully consider both these factors and other uncertainties and events. Forward-looking statements apply only as of the date on which they are made, and we do not undertake any obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

				SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED
Date: October 27, 2023				By:		/s/ Wan Tao
				Name:		Wan Tao
				Title:		Chairman of the Board of Directors

 

3

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.

 

Sinopec Shanghai Petrochemical Company Limited

中國石化上海石油化工股份有限公司

(A joint stock limited company incorporated in the People’s Republic of China)

(Stock Code:00338)

2023 THIRD QUARTERLY REPORT

 

This announcement is published simultaneously in Shanghai and Hong Kong. This announcement is published pursuant to the Rules Governing Listing of Stocks on Shanghai Stock Exchange in the People’s Republic of China. This announcement is published pursuant to the disclosure obligations under Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

 

1.	IMPORTANT MESSAGE

 

1.1

The Board of Directors (the “Board”) and the Supervisory Committee of Sinopec Shanghai Petrochemical Company Limited (the “Company”, together with its subsidiaries, the “Group”) as well as its directors, supervisors and senior management warrant the truthfulness, accuracy and completeness of the information contained in the 2023 third quarterly report, and warrant that there are no false representations or misleading statements contained in or material omissions from this report and severally and jointly accept responsibility pursuant to such information.

 

1.2

Mr. Wan Tao, Chairman of the Company, Mr. Du Jun, executive director, deputy president and CFO, overseeing the accounting operations, and Ms. Fu Hejuan, person in charge of Accounting Department (Accounting Chief) and Deputy Director of Finance Department warrant the truthfulness, accuracy and completeness of the financial information contained in this third quarterly report.

 

1.3

The financial report of the Company’s 2023 third quarterly report was prepared under the China Accounting Standards for Business Enterprises and was unaudited.

 

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2.	MAJOR ACCOUNTING DATA

 

2.1

Major Financial Report Items and Financial Indicators

Unit:  RMB’000

 

		The				The corresponding period of the previous year								Increase/ decrease during the Reporting Period as compared to the corresponding period of the previous year (%)		From the beginning of the year to the end of the Reporting Period				The corresponding period of the previous year								Increase/ decrease during the beginning of the year to the end of the Reporting Period as compared to the corresponding period of the previous year (%)
Item		Reporting Period				Before adjustment				After adjustment				After adjustment						Before adjustment				After adjustment				After adjustment
Revenue			24,922,150				11,878,206				11,878,206			109.81%			69,859,201				57,778,561				57,778,561			20.91%
Net profit attributable to equity shareholders of the Company			268,831				-1,566,776				-1,565,926			Not Applicable			-719,446				-2,002,785				-2,001,968			Not Applicable
Net profit attributable to equity shareholders of the Company excluding non-recurring items			285,337				-1,529,123				-1,528,273			Not Applicable			-686,813				-1,931,667				-1,930,850			Not Applicable
Net cash flows generated from operating activities			-661,434				1,670,792				1,670,792			-139.59%			-888,316				-4,734,330				-4,734,330			Not Applicable
Basic earnings per share (RMB/share)			0.025				-0.145				-0.145			Not Applicable			-0.067				-0.185				-0.185			Not Applicable
Diluted earnings per share (RMB/share)			0.025				-0.145				-0.145			Not Applicable			-0.067				-0.185				-0.185			Not Applicable
Return on net assets (weighted average) (%)			1.058				-5.472				–5.469			Increased by 6.527 percentage points			–2.778				–6.920				–6.917			Increased by 4.139 percentage points

 

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		As at the end of the				As at the end of the previous year								Increase/ decrease at the end of the Reporting Period as compared to the end of the previous year (%)
		Reporting Period				Before adjustment				After adjustment				After adjustment
Total assets			39,320,227				41,242,740				41,242,782				-4.66	%
Total equity attributable to equity shareholders of the Company			25,552,914				26,243,705				26,243,746				-2.63	%

Note: The Reporting Period thereafter means three months from July to September in 2023.

Reasons for retroactive adjustment or restatement

Since 1 January 2023, the Group has implemented the requirement of the “Accounting of deferred income tax related to assets and liabilities arising from an individual transaction not applicable to initial recognition exemption” under the “Interpretation of Accounting Standards for Business Enterprises No. 16” promulgated by the Ministry of Finance.

According to the provisions of Interpretation No. 16, if the individual transaction of the Group is not a business combination, or its occurrence does not affect the accounting profit nor taxable income (or deductible loss), and the initially recognized assets and liabilities result in equal taxable temporary difference and deductible temporary difference, the provisions of “Accounting Standards for Business Enterprises No. 18-Income Tax” on the exemption from the initial recognition of deferred income tax liabilities and deferred income tax assets are not applicable. According to the “Accounting Standards for Business Enterprises No. 18-Income Tax” and other relevant regulations, as for the taxable temporary difference and deductible temporary difference arising from the initial recognition of assets and liabilities, the Group recognizes the corresponding deferred income tax liabilities and deferred income tax assets respectively when the transaction occurs.

 

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The above regulations have come into effect on 1 January 2023. The Group has made retrospective adjustments to the individual transactions that occurred between 1 January 2022 and the date of initial implementation to which the regulations apply. For the lease liabilities and right-of-use assets recognized on 1 January 2022 due to the individual transactions subject to the regulations resulting in taxable temporary difference and deductible temporary difference, the Group adjusted the cumulative impact amount to the opening retained earnings and other related financial statement items of the earliest period presented in the financial statements in accordance with the regulations and the “Accounting Standards for Business Enterprises No. 18-Income Tax”.

 

2.2

Excluded Non-recurring Items and Amount

Unit:  RMB’000

 

Item		Amount for the Reporting Period				Amount from the beginning of the year to the end of  the Reporting Period				Note
Earnings or losses on disposal of non-current assets			2,654				-6,222			—
Government grants recognized in current profits and losses, except for those closely related to the regular operating of the Company in compliance with national policies and regulations, and continuously satisfying quotas or quantities according to certain standards			3,596				15,995			—
Other non-operating income and expenses other than those mentioned above			-18,324				-28,218			—

 

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Item		Amount for the Reporting Period				Amount from the beginning of the year to the end of  the Reporting Period				Note
Other earnings or losses meeting the definition of non-recurring earnings or losses			-7,710				-19,672			Amount in the Reporting Period: -6,549 for dismissal welfare and -1,161 for discount loss of receivables;   Amount from the beginning of the year to the end of the Reporting Period: -16,514 for dismissal welfare and -3,158 for discount loss of receivables
Less: Tax effect for the items above			3,203				5,562			—
Effect on non-controlling interests (after tax)			75				-78			—
Total			-16,506				-32,633			—

Explanations on defining the non-recurring earnings or losses items set out in the “Explanatory Announcement No. 1 on Information Disclosure by Companies Offering Securities to the Public – Non-Recurring Earnings or Losses” as recurring earnings or losses items

☐ Applicable  ✓ Not Applicable

 

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2.3

Description and Reasons of Substantial Changes in Major Financial Report Items and Financial Indicators

✓ Applicable  ☐ Not Applicable

 

Item		Change (%)				Major reason
Operating Profit_during the Reporting Period			109.81%			During the Reporting Period, crude oil processing volume increased compared with the corresponding period last year, and sales of synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products rose compared with the corresponding period last year.
Net profit attributable to equity shareholders of the Company_during the Reporting Period			Not Applicable			During the Reporting Period, production and sales of petrochemical products increased, unit costs decreased year-on-year and gross profit increased year-on-year, resulting in higher operating results for the Reporting Period.
Net profit attributable to equity shareholders of the Company excluding nonrecurring items_during the Reporting Period			Not Applicable
Basic earnings per share (RMB/share)_ during the Reporting Period			Not Applicable
Diluted earnings per share (RMB/share)_ during the Reporting Period			Not Applicable
Net cash flows generated from operating activities_during the Reporting Period			-139.59%			During the Reporting Period, the cash paid for purchasing goods and receiving services increased compared with the corresponding period last year.

 

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Item		Change (%)				Major reason
Net profit attributable to equity shareholders of the Company_ from the beginning of the year to the end of the Reporting Period			Not Applicable			From the beginning of the year to the end of the Reporting Period, the production and sales of petrochemical products increased, and the price of the main products declined less than that of crude oil, resulting in a year-on-year increase in the operating results from the beginning of the year to the end of the Reporting Period.
Net profit attributable to equity shareholders of the Company excluding nonrecurring items_from the beginning of the year to the end of the Reporting Period			Not Applicable
Basic earnings per share (RMB/share)_ from the beginning of the year to the end of the Reporting Period			Not Applicable
Diluted earnings per share (RMB/share)_ from the beginning of the year to the end of the Reporting Period			Not Applicable
Net cash flows generated from operating activities_ from the beginning of the year to the end of the Reporting Period			Not Applicable			From the beginning of the year to the end of the Reporting Period, the cash received from selling goods and providing services increased compared with the corresponding period last year.

 

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3.	SHAREHOLDERS’ INFORMATION

 

3.1

Total Number of Shareholders and the Number of Preferred Shareholders with Voting Rights Restored and Shareholdings of the Top Ten Shareholders

Unit:  Share

 

Number of shareholders as at the end of the Reporting Period			92,649			Total number of preferred shareholders with voting rights restored as at the end of the Reporting Period (if any)			0

 

Shareholdings of the top ten shareholders
Name of shareholder		Type of shareholder		Number of shares held				Percentage of total shareholding (%)				Number of shares with selling restrictions				Number of shares pledged, marked or frozen
																Situation of the shares				Number
China Petroleum & Chemical Corporation		State-owned legal person			5,459,455,000				50.55	%			0				None				0
HKSCC (Nominees) Limited		Overseas legal person			3,451,266,030				31.96	%			0				Unknown				—
HKSCC Limited		Overseas legal person			102,580,022				0.95	%			0				None				0
Wang Lei		Domestic natural person			46,120,300				0.43	%			0				None				0
Southern Fund– Agricultural Bank of China – Southern CSI Financial Asset Management Plan		Others			39,031,700				0.36	%			0				None				0
GF Fund – Agricultural Bank of China – GF CSI Financial Asset Management Plan		Others			38,039,800				0.35	%			0				None				0
Yinhua Fund– Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan		Others			37,251,516				0.34	%			0				None				0
Dacheng Fund – Agricultural Bank of China – Dacheng CSI Financial Asset Management Plan		Others			37,028,669				0.34	%			0				None				0
Bosera Fund – Agricultural Bank of China – Bosera CSI Financial Asset Management Plan		Others			28,377,600				0.26	%			0				None				0
Harvest Fund – Agricultural Bank of China – Harvest CSI Financial Asset Management Plan		Others			25,583,100				0.24	%			0				None				0

 

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Shareholdings of the top ten shareholders with unrestricted shares
Name of shareholder		Number of unrestricted tradable shares				Type and quantity of shares
						Type of shares		Quantity
China Petroleum & Chemical Corporation			5,459,455,000			RMB common stocks			5,459,455,000
HKSCC (Nominees) Limited			3,451,266,030			Overseas listed foreign shares			3,451,266,030
HKSCC Limited			102,580,022			RMB common stocks			102,580,022
Wang Lei			46,120,300			RMB common stocks			46,120,300
Southern Fund– Agricultural Bank of China – Southern CSI Financial Asset Management Plan			39,031,700			RMB common stocks			39,031,700
GF Fund – Agricultural Bank of China – GF CSI Financial Asset Management Plan			38,039,800			RMB common stocks			38,039,800
Yinhua Fund– Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan			37,251,516			RMB common stocks			37,251,516
Dacheng Fund – Agricultural Bank of China – Dacheng CSI Financial Asset Management Plan			37,028,669			RMB common stocks			37,028,669
Bosera Fund – Agricultural Bank of China – Bosera CSI Financial Asset Management Plan			28,377,600			RMB common stocks			28,377,600
Harvest Fund – Agricultural Bank of China – Harvest CSI Financial Asset Management Plan			25,583,100			RMB common stocks			25,583,100

 

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Explanation of the connected relationship or acting in concert relationship of the above shareholders		Among the above-mentioned shareholders, China Petroleum & Chemical Corporation, a state-owned legal person, does not have any connected relationship with the other shareholders, and does not constitute an act-in-concert party under the Administration Measures on Acquisition of Listed Companies. Among the above-mentioned shareholders, HKSCC (Nominees) Limited is a nominee and HKSCC Limited is the nominal holder of the Company’s Shanghai-Hong Kong Stock Connect. Apart from the above, the Company is not aware of any other connected relationships among the other shareholders, or whether any other shareholder constitutes an act-in-concert party under the Administrative Measures on Acquisition of Listed Companies.
Explanation of the top ten shareholders and the top ten shareholders with unrestricted shares engaging in margin financing and securities lending as well as margin and securities refinancing business (if any)		Not Applicable

 

4.	OTHER REMINDERS

Other important information about the operation of the Company during the Reporting Period that investors should be reminded of

☐ Applicable   ✓ Not Applicable

 

5.	QUARTERLY FINANCIAL REPORT

 

5.1

Type of Audit Opinions

☐ Applicable   ✓ Not Applicable

 

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5.2

The financial report

CONSOLIDATED BALANCE SHEETS

30 September 2023

Prepared by: Sinopec Shanghai Petrochemical Company Limited

Unit:  RMB’000  Audit type: unaudited

 

Items		As at 30 September 2023				As at 31 December 2022
Current assets:
Cash at bank and on hand			6,442,930				3,998,332
Derivative financial assets			21,283				—
Account receivable			2,326,544				2,512,362
Receivables under financing			562,443				582,354
Prepayments			82,352				67,008
Other receivables			196,462				190,579
Inventories			5,776,933				7,294,060
Other current assets			210,887				1,121,187
Total current assets			15,619,834				15,765,882
Non-current assets:
Long-term equity investments			3,301,381				3,594,393
Other equity instrument investment			5,000				5,000
Other non-current financial assets			26,500				—
Investment properties			324,848				336,863
Fixed assets			14,280,256				12,195,527
Construction in progress			946,784				3,748,461
Right-of-use assets			11,716				16,085
Intangible assets			357,664				372,640
Long-term prepaid expenses			602,708				776,480
Deferred tax assets			1,084,624				991,892
Other non-current assets			2,758,912				3,439,559
Total non-current assets			23,700,393				25,476,900
Total assets			39,320,227				41,242,782

 

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Items		As at 30 September 2023				As at 31 December 2022
Current liabilities:
Short-term borrowings			5,045,000				1,550,000
Derivative financial liabilities			12,585				—
Notes payable			615,672				40,951
Accounts payable			3,497,722				9,144,554
Contract liabilities			795,811				383,246
Employee benefits payable			838,395				317,891
Taxes payable			958,448				889,856
Other payables			911,127				1,618,352
Non-current liabilities due within one year			709,858				8,738
Other current liabilities			88,848				44,750
Total current liabilities			13,473,466				13,998,338
Non-current liabilities:
Long-term borrowing			—				700,000
Lease liabilities			4,758				7,513
Deferred revenue			127,700				134,608
Deferred tax liabilities			30,922				30,898
Total non-current liabilities			163,380				873,019
Total liabilities			13,636,846				14,871,357
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)			10,799,286				10,823,814
Capital surplus			609,166				610,327
Less: Treasury stock			—				25,689
Other comprehensive income			5,697				(806	)
Specific reserve			262,529				240,418
Surplus reserve			6,672,634				6,672,634
Undistributed profits			7,203,602				7,923,048
Total equity attributable to owners (or shareholders) of the Company			25,552,914				26,243,746
Non-controlling interests			130,467				127,679
Total owners’ equity (or shareholders’ equity)			25,683,381				26,371,425
Total liabilities and owners’ equity (or shareholders’ equity)			39,320,227				41,242,782

 

Person in charge		Person in charge		Person in charge of
of the Company:		of accounting:		accounting department:
Wan Tao		Du Jun		Fu Hejuan

 

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CONSOLIDATED INCOME STATEMENTS

January to September 2023

Prepared by: Sinopec Shanghai Petrochemical Company Limited

Unit:  RMB’000  Audit type: unaudited

 

Items		First three quarters of 2023 (January to September)				First three quarters of 2022 (January to September)
1.  Total revenue			69,859,201				57,778,561
Including: Revenue			69,859,201				57,778,561
2.  Total operating cost			70,630,335				60,185,533
Including: Cost of sales			58,956,016				51,267,019
Taxes and surcharges			9,629,262				6,972,764
Selling and distribution expenses			227,362				211,241
General and administrative expenses			1,399,633				1,586,069
R&D expenses			112,338				82,916
Financial expenses			-178,659				-374,135
Add: Other income			7,782				12,471
Investment income (“-” to indicate loss)			-204,058				-185,032
Profit arising from changes in fair value (“-” to indicate loss)			—				1,819
Credit impairment losses (“-” to indicate loss)			551				-4,893
Asset impairment losses (“-” to indicate loss)			-289,092				-262,962
Gains on disposal of assets (“-” to indicate loss)			434				-1,062
3.  Operating profit (“-” to indicate loss)			-771,134				-2,406,972
Add: Non-operating income			29,865				15,135
Less: Non-operating expenses			56,526				63,399
4.  Total profit (“-” to indicate loss)			-797,795				-2,455,236
Less: Income tax expenses			-81,137				-457,773
5.  Net Profit (“-” to indicate loss)			-716,658				-1,997,463
(1)  Classification by business continuity
1. Profit from continuing operations (“-” to indicate loss)			-716,658				-1,997,463
(2)  Classification by ownership
1. Attributable to equity shareholders of the Company (“-” to indicate loss)			-719,446				-2,001,968
2. Non-controlling interests (“-” to indicate loss)			2,788				4,505

 

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Items		First three quarters of 2023 (January to September)				First three quarters of 2022 (January to September)
6.  Other comprehensive income, net of tax			42,610				220,443
(1)  Other comprehensive income, net of tax attributable to owners of the Company			42,610				220,443
1. Items that may not be reclassified to profit or loss using the equity method			—				—
2. Items that may be reclassified to profit or loss using the equity method			42,610				220,443
(1)  Items that may be reclassified to profit or loss using the equity method			-21				-22,558
(2)  Cash flow hedging reserves			42,631				243,001
(2)  Other comprehensive income, net of tax attributable to non-controlling interests			—				—
7.  Total comprehensive income			-674,048				-1,777,020
(1)  Attributable to owners of the Company			-676,836				-1,781,525
(2)  Attributable to non-controlling interests			2,788				4,505
8.  Earnings per share:
(1)  Basic earnings per share (RMB/share)			-0.067				-0.185
(2)  Diluted earnings per share (RMB/share)			-0.067				-0.185

 

Person in charge		Person in charge		Person in charge of
of the Company:		of accounting:		accounting department:
Wan Tao		Du Jun		Fu Hejuan

 

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CONSOLIDATED CASH FLOW STATEMENTS

January to September 2023

Prepared by: Sinopec Shanghai Petrochemical Company Limited

Unit:  RMB’000  Audit type: unaudited

 

Items		First three quarters of 2023 (January to September)		First three quarters of 2022 (January to September)
1.  Cash flows from operating activities:
Cash received from sales of goods or rendering of services		77,343,192		62,557,584
Tax refund received		538,646		1,183,540
Cash received relating to other operating activities		209,563		180,928
Sub-total of cash inflows		78,091,401		63,922,052
Cash paid for goods and services		66,807,104		55,594,090
Cash paid to and on behalf of employees		2,243,315		2,267,514
Payments of taxes and surcharges		9,510,014		10,385,945
Cash paid relating to other operating activities		419,284		408,833
Sub-total of cash outflows		78,979,717		68,656,382
Net cash flows generated from operating activities		-888,316		-4,734,330
2.  Cash flows from investing activities:
Cash received from investment recovery		50,000		150,000
Cash received from returns on investments		92,091		671,805
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		83,575		10,401
Cash received relating to other investing activities		3,197,709		8,957,483
Sub-total of cash inflows		3,423,375		9,789,689
Cash paid to acquire fixed assets, intangible assets and other long-term assets		1,042,457		1,899,984
Cash paid for investment		26,500		1,000,000
Net cash received from subsidiaries and other business units		—		296,672
Cash paid to other related investment activities		—		2,802,657
Sub-total of cash outflows		1,068,957		5,999,313
Net cash flows generated from investment activities		2,354,418		3,790,376

 

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Items		First three quarters of 2023 (January to September)		First three quarters of 2022 (January to September)
3.  Cash flows from financing activities:
Cash received from borrowings		24,045,000		16,485,000
Cash received from short-term bonds		—		5,000,000
Sub-total of cash inflows		24,045,000		21,485,000
Cash repayments of borrowings		20,550,000		15,984,800
Cash repayments of short-term bonds		—		3,000,000
Cash paid for distribution of dividends or profits and interest expenses		103,417		1,182,055
Cash and interest repaid for lease liabilities		10,913		9,629
Sub-total of cash outflows		20,664,330		20,176,484
Net cash flows generated from financing activities		3,380,670		1,308,516
4.  Effect of foreign exchange rate changes on cash and cash equivalents		6,159		18,115
5.  Net increase in cash and cash equivalents		4,852,931		382,677
Add: Cash and cash equivalents at beginning of the reporting period		889,413		5,112,010
6.  Cash and cash equivalents at end of the reporting period		5,742,344		5,494,687

 

Person in charge		Person in charge		Person in charge of
of the Company:		of accounting:		accounting department:
Wan Tao		Du Jun		Fu Hejuan

Adjustments to financial report at the beginning of the year relating to the initial adoption of the new accounting standards or interpretation of standards since 2023

✓ Applicable  ☐ Not Applicable

 

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Explanation of reasons for adjustments on the financial statements at the beginning of the year

In 2023, the Group has implemented the relevant requirements and guidelines of the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance in recent years:

Requirement of the “Accounting of deferred income tax related to assets and liabilities arising from an individual transaction not applicable to initial recognition exemption” in Interpretation No.16.

 

(a)

Requirement of the accounting of deferred income tax related to assets and liabilities arising from an individual transaction not applicable to initial recognition exemption

According to the provisions of Interpretation No. 16, if the individual transaction of the Group is not a business combination, or its occurrence does not affect the accounting profit nor taxable income (or deductible loss), and the initially recognized assets and liabilities result in equal taxable temporary difference and deductible temporary difference, the provisions of “Accounting Standards for Business Enterprises No. 18-Income Tax” on the exemption from the initial recognition of deferred income tax liabilities and deferred income tax assets are not applicable. According to the “Accounting Standards for Business Enterprises No. 18-Income Tax” and other relevant regulations, as for the taxable temporary difference and deductible temporary difference arising from the initial recognition of assets and liabilities, the Group recognizes the corresponding deferred income tax liabilities and deferred income tax assets respectively when the transaction occurs.

The above regulations have come into effect on 1 January 2023. The Group has made retrospective adjustments to the individual transactions that occurred between 1 January 2022 and the date of initial implementation to which the regulations apply. For the lease liabilities and right-of-use assets recognized on 1 January 2022 due to the individual transactions subject to the regulations resulting in taxable temporary difference and deductible temporary difference, the Group adjusted the cumulative impact amount to the opening retained earnings and other related financial statement items of the earliest period presented in the financial statements in accordance with the regulations and the “Accounting Standards for Business Enterprises No. 18-Income Tax”.

 

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(b)

Impacts of the change on the comparative financial report

The impacts of the above change in the accounting policy on net loss for the nine months ended 30 September 2022 and owners’ equity at the beginning and the end of 2022 are summarized as follows:

Unit: RMB’000

 

Items		Net loss for the nine months ended 30 September 2022				Equity at the end of 2022				Equity at the beginning of 2022
Net loss and shareholders’ equity before adjustment			1,998,274				26,371,386				30,395,431
Deferred income tax relating to assets and liabilities arising from an individual transaction does not apply to the impact of initial recognition exemptions			-811				39				-67
Adjusted net loss and equity			1,997,463				26,371,425				30,395,364

 

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The effects on the consolidated balance sheets as at 31 December 2022 are analysed as follows:

CONSOLIDATED BALANCE SHEETS

Unit: RMB’000

 

Items		As at 31 December 2022 before adjustment				As at 31 December 2022 after adjustment				Adjustment
Non-current assets:
Deferred tax assets			991,850				991,892				42
Total non-current assets			25,476,858				25,476,900				42
Total assets			41,242,740				41,242,782				42
Non-current liabilities:
Deferred tax liabilities			30,895				30,898				3
Total non-current liabilities			873,016				873,019				3
Total liabilities			14,871,354				14,871,357				3
Owners’ equity (or shareholders’ equity):
Surplus reserve			6,672,639				6,672,634				-5
Undistributed profits			7,923,002				7,923,048				46
Total equity attributable to owners (or shareholders) of the Company			26,243,705				26,243,746				41
Non-controlling interests			127,681				127,679				-2
Total owners’ equity (or shareholders’ equity)			26,371,386				26,371,425				39
Total liabilities and owners’ equity (or shareholders’ equity)			41,242,740				41,242,782				42

The effects on the consolidated income statements for the nine months ended 30 September 2022 are analysed as follows:

 

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CONSOLIDATED INCOME STATEMENTS

Unit: RMB’000

 

Items		Before adjustment for the first three quarters of 2022 (January to September)				After adjustment for the first three quarters of 2022 (January to September)				Adjustment
Less: Income tax expenses			-456,962				-457,773				-811
V.  Net Profit (“-” to indicate loss)			-1,998,274				-1,997,463				811
(1)   Classification by business continuity
1.   Net profit from continuing operations			-1,998,274				-1,997,463				811
(2)   Classification by ownership
1.   Attributable to equity shareholders of the Company (“-” to indicate loss)			-2,002,785				-2,001,968				817
2.   Non-controlling interests (“-” to indicate loss)			4,511				4,505				-6
VII.  Total comprehensive income			-1,777,831				-1,777,020				811
Attributable to equity owners of the Company			-1,782,342				-1,781,525				817
Attributable to non-controlling interests			4,511				4,505				-6
VIII.  Earnings per share
(1)   Basic earnings per share (RMB)			-0.185				-0.185				—
(2)   Diluted earnings per share (RMB)			-0.185				-0.185				—

 

		By Order of the Board
		Sinopec Shanghai Petrochemical Company Limited Liu Gang
		Joint Company Secretary
Shanghai, the PRC, 25 October 2023

 

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As at the date of this announcement, the executive directors of the Company are Wan Tao, Guan Zemin, Du Jun and Huang Xiangyu; the non-executive directors of the Company are Xie Zhenglin and Qin Zhaohui; and the independent non-executive directors of the Company are Tang Song, Chen Haifeng, Yang Jun, Zhou Ying and Huang Jiangdong.

 

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Exhibit 99.2

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.

 

Sinopec Shanghai Petrochemical Company Limited

中國石化上海石油化工股份有限公司

(A joint stock limited company incorporated in the People’s Republic of China)

(Stock Code: 00338)

Major Operating Data of the 2023 First Three Quarters

According to Rule 15 of the Guidelines of the Shanghai Stock Exchange for Self-regulatory Guidelines for Listed Companies No.3 - Industry Information Disclosure No.13 - Chemical Industry, Sinopec Shanghai Petrochemical Company Limited (the “Company”, together with its subsidiaries, the “Group”) hereby announces the major operating data for the nine months ended 30 September 2023 as follows:

 

I.	MAJOR OPERATING DATA OF THE 2023 FIRST THREE QUARTERS

 

Product		Production volume (10,000 tons)				Sales volume (10,000 tons)				Sales revenue (RMB1,000)
Petroleum products
Diesel			269.34				266.83				17,571,907
Gasoline			249.23				248.20				20,974,641
Jet Fuel note 1			136.35				97.84				5,585,019
Intermediate petrochemicals
PX note 2			53.26				53.39				3,974,152
Benzene note 1			28.26				25.24				1,586,065
Ethylene Glycol note 2			7.19				6.05				219,671
Ethylene Oxide			11.97				11.47				639,636
Ethylene note 2			53.35				0				0
Resins and plastics
PE			41.72				38.48				2,929,715
PP			33.79				31.85				2,329,711
Polyester chips note 1 note 2			3.77				3.81				224,093
Synthetic fibres
Acrylics			1.62				1.78				253,894

 

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Note 1:  Sales volume excludes materials processed on a sub-contract basis.

Note 2:  Part of the difference between the production volume and sales volume is for internal use.

The above data for sales volume and sales revenue does not include the data for the Group’s trading of petrochemical products.

 

II.	CHANGE IN PRICES OF MAJOR PRODUCTS AND RAW MATERIALS IN THE 2023 FIRST THREE QUARTERS

Unit:  RMB/ton

 

Product		The average price in the 2023 first three quarters				The average price in the 2022 first three quarters				Year-on-year change				Quarter-on-quarter change*
Diesel			6,585				7,219				-8.77	%			9.26	%
Gasoline			8,451				8,954				-5.63	%			8.36	%
Jet Fuel			5,708				6,336				-9.91	%			12.62	%
Ethylene			—				—				—				—
PX			7,443				7,594				-1.98	%			6.39	%
Benzene			6,283				7,212				-12.88	%			6.55	%
Ethylene Glycol			3,634				4,463				-18.58	%			-1.16	%
Ethylene Oxide			5,578				6,692				-16.64	%			-8.09	%
PE			7,613				9,109				-16.42	%			4.35	%
PP			7,315				8,293				-11.79	%			4.44	%
Polyester chips			5,882				6,646				-11.49	%			—
Acrylics			14,294				16,271				-12.15	%			-8.24	%
Raw material		The average processing cost in the 2023 first three quarters				The average processing cost in the 2022 first three quarters				Year-on-year change				Quarter-on-quarter change*
Crude oil			4,235				4,617				-8.26	%			1.97	%

 

*	the number in the 2023 third quarter compared with that in the 2023 second quarter

 

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III.	MISCELLANEOUS

The above-mentioned operating data was calculated based on the internal statistics of the Company and is intended to provide an overview of the production and operation of the Company to the investors on a timely basis. The operating data is unaudited and does not make any express or implied forecasts or guarantees in respect of the Company’s future operating conditions. Investors are advised to exercise caution when using such information.

 

		By Order of the Board
		Sinopec Shanghai Petrochemical Company Limited
		Liu Gang
		Joint Company Secretary

Shanghai, the PRC, 25 October 2023

As at the date of this announcement, the executive directors of the Company are Wan Tao, Guan Zemin, Du Jun and Huang Xiangyu; the non-executive directors of the Company are Xie Zhenglin and Qin Zhaohui; and the independent non-executive directors of the Company are Tang Song, Chen Haifeng, Yang Jun, Zhou Ying and Huang Jiangdong.

 

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