The Group’s investments in associates are with companies primarily engaged in the oil and gas, petrochemical, and marketing and distribution operations in the PRC.
The Group’s principal associates are as follows:
|
Name of company |
|
Form of |
|
Particulars |
|
Percentage |
|
Percentage |
|
Principal |
|
Country of |
|
Principal place |
|
|
|
|
|
|
|
% |
|
% |
|
|
|
|
|
|
|
Sinopec Sichuan to East China Gas Pipeline Co., Ltd. (“Pipeline Ltd”) |
|
Incorporated |
|
Registered capital RMB 200 million |
|
— |
|
50.00 |
|
Operation of natural gas pipelines and auxiliary facilities |
|
PRC |
|
PRC |
|
Sinopec Finance Company Limited (“Sinopec Finance”) |
|
Incorporated |
|
Registered capital RMB 18,000 million |
|
49.00 |
|
— |
|
Provision of non-banking financial services |
|
PRC |
|
PRC |
|
PAO SIBUR Holding(“SIBUR”) |
|
Incorporated |
|
Registered capital RUB 21,784 million |
|
— |
|
10.00 |
|
Processing natural gas and manufacturing petrochemical products |
|
Russia |
|
Russia |
|
Zhongtian Synergetic Energy Company Limited (“Zhongtian Synergetic Energy”) |
|
Incorporated |
|
Registered capital RMB 17,516 million |
|
— |
|
38.75 |
|
Mining coal and manufacturing of coal-chemical products |
|
PRC |
|
PRC |
|
Caspian Investments Resources Ltd. (“CIR”) |
|
Incorporated |
|
Registered capital USD 10,000 |
|
— |
|
50.00 |
|
Crude oil and natural gas extraction |
|
British Virgin Islands |
|
The Republic of Kazakhstan |
Summarized financial information and reconciliation to their carrying amounts in respect of the Group’s principal associates:
|
|
|
Pipeline Ltd |
|
Sinopec Finance |
|
SIBUR (i) |
|
Zhongtian |
|
CIR |
|
||||||||
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
||||||||
|
|
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
|
Current assets |
|
11,835 |
|
11,317 |
|
149,457 |
|
161,187 |
|
20,719 |
|
7,292 |
|
8,232 |
|
5,120 |
|
5,612 |
|
|
Non-current assets |
|
42,124 |
|
40,972 |
|
16,478 |
|
17,782 |
|
158,938 |
|
50,301 |
|
51,553 |
|
3,842 |
|
1,673 |
|
|
Current liabilities |
|
(5,009 |
) |
(933 |
) |
(142,386 |
) |
(154,212 |
) |
(20,554 |
) |
(8,078 |
) |
(10,668 |
) |
(928 |
) |
(908 |
) |
|
Non-current liabilities |
|
(3,350 |
) |
(3,176 |
) |
(88 |
) |
(6 |
) |
(61,771 |
) |
(32,137 |
) |
(31,494 |
) |
(883 |
) |
(170 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
45,600 |
|
48,180 |
|
23,461 |
|
24,751 |
|
97,332 |
|
17,378 |
|
17,623 |
|
7,151 |
|
6,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets attributable to owners of the Company |
|
45,600 |
|
48,180 |
|
23,461 |
|
24,751 |
|
96,761 |
|
17,378 |
|
17,623 |
|
7,151 |
|
6,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets attributable to non-controlling interests |
|
— |
|
— |
|
— |
|
— |
|
571 |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net assets from associates |
|
22,800 |
|
24,090 |
|
11,496 |
|
12,128 |
|
9,676 |
|
6,734 |
|
6,829 |
|
3,576 |
|
3,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Amounts |
|
22,800 |
|
24,090 |
|
11,496 |
|
12,128 |
|
9,676 |
|
6,734 |
|
6,829 |
|
3,576 |
|
3,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summarized statement of comprehensive income
|
Year ended |
|
Pipeline Ltd |
|
Sinopec Finance |
|
SIBUR(i) |
|
Zhongtian Synergetic |
|
CIR(iii) |
|
||||||||||||||
|
|
2016 |
|
2017 |
|
2015 |
|
2016 |
|
2017 |
|
2017 |
|
2015 |
|
2016 |
|
2017 |
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
|
Operating revenues |
|
191 |
|
5,644 |
|
2,533 |
|
2,442 |
|
3,542 |
|
52,496 |
|
— |
|
— |
|
3,569 |
|
687 |
|
2,205 |
|
2,563 |
|
|
Net income/(loss) for the year |
|
51 |
|
2,543 |
|
3,484 |
|
1,526 |
|
1,536 |
|
9,601 |
|
— |
|
— |
|
123 |
|
(90 |
) |
(3,518 |
) |
(610 |
) |
|
Other comprehensive income/(loss) |
|
— |
|
— |
|
28 |
|
(175 |
) |
(246 |
) |
(260 |
) |
— |
|
— |
|
— |
|
(4,017 |
) |
662 |
|
(334 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income/(loss) |
|
51 |
|
2,543 |
|
3,512 |
|
1,351 |
|
1,290 |
|
9,341 |
|
— |
|
— |
|
123 |
|
(4,107 |
) |
(2,856 |
) |
(944 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared by associates |
|
23 |
|
— |
|
— |
|
— |
|
— |
|
221 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
Share of net income/(loss) from associates |
|
26 |
|
1,272 |
|
1,707 |
|
748 |
|
753 |
|
960 |
|
— |
|
— |
|
48 |
|
(45 |
) |
(1,759 |
) |
(305 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of other comprehensive income/(loss) from associates (iv) |
|
— |
|
— |
|
14 |
|
(86 |
) |
(121 |
) |
(26 |
) |
— |
|
— |
|
— |
|
(2,009 |
) |
331 |
|
(167 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The share of net income for years ended December 31, 2015, 2016 and 2017 in all individually immaterial associates accounted for using equity method in aggregate were RMB 1,913, RMB 2,869 and RMB 3,182, respectively.
The share of other comprehensive (loss)/income for the years ended December 31, 2015, 2016 and 2017 in all individually immaterial associates accounted for using equity method in aggregate were a loss of RMB 632, a loss of RMB 384 and a gain of RMB 569, respectively.
The carrying amount as of December 31, 2016 and 2017 of all individually immaterial associates accounted for using equity method in aggregate were RMB 21,510 and RMB 23,899, respectively.
Note:
(i) Sinopec is able to exercise significant influence in SIBUR since Sinopec has a member in SIBUR’s Board of Director and has a member in SIBUR’s Management Board.
(ii) The summarized statement of comprehensive income for the year 2016 of Piepline Ltd presents the operating results from the date when the Group lost control to December 31, 2016.
(iii) In August 2015, one of the subsidiaries of Sinopec Group Company completed the acquisition from LUKOIL OVERSEAS WEST PROJECT Ltd. a 50% equity interests in CIR and revised CIR’s Articles of Association subsequently. According to the revised CIR’s Articles of Association, the Group retained significant influences over CIR. As a result, the Group reclassified the investment interest in CIR from joint ventures to associates. The summarized statement of comprehensive income for the year ended December 31, 2015 of CIR represents the operating result for the period from the date when the Group reclassified the investment interest in CIR from joint ventures to associates to December 31, 2015.
(iv) Including foreign currency translation differences.