34. SEGMENT REPORTING
Segment information is presented in respect of the Group’s business segments. The format is based on the Group’s management and internal reporting structure.
In a manner consistent with the way in which information is reported internally to the Group’s chief operating decision maker for the purposes of resource allocation and performance assessment, the Group has identified the following five reportable segments. No operating segments have been aggregated to form the following reportable segments.
|
(i) |
|
Exploration and production, which explores and develops oil fields, produces crude oil and natural gas and sells such products to the refining segment of the Group and external customers. |
|
|
|
|
|
(ii) |
|
Refining, which processes and purifies crude oil, that is sourced from the exploration and production segment of the Group and external suppliers, and manufactures and sells petroleum products to the chemicals and marketing and distribution segments of the Group and external customers. |
|
|
|
|
|
(iii) |
|
Marketing and distribution, which owns and operates oil depots and service stations in the PRC, and distributes and sells refined petroleum products (mainly gasoline and diesel) in the PRC through wholesale and retail sales networks. |
|
|
|
|
|
(iv) |
|
Chemicals, which manufactures and sells petrochemical products, derivative petrochemical products and other chemical products mainly to external customers. |
|
|
|
|
|
(v) |
|
Corporate and others, which largely comprise the trading activities of the import and export companies of the Group and research and development undertaken by other subsidiaries. |
The segments were determined primarily because the Group manages its exploration and production, refining, marketing and distribution, chemicals, and corporate and others businesses separately. The reportable segments are each managed separately because they manufacture and/or distribute distinct products with different production processes and due to their distinct operating and gross margin characteristics.
(1)Information of reportable segmental revenues, profits or losses, assets and liabilities
The Group’s chief operating decision maker evaluates the performance and allocates resources to its operating segments on an operating profit basis, without considering the effects of finance costs or investment income. Inter-segment transfer pricing is based on the market price or cost plus an appropriate margin, as specified by the Group’s policy.
Assets and liabilities dedicated to a particular segment’s operations are included in that segment’s total assets and liabilities. Segment assets include all tangible and intangible assets, except for interest in associates and joint ventures, investments, deferred tax assets, cash and cash equivalents, time deposits with financial institutions and other unallocated assets. Segment liabilities exclude short-term, income tax payable, long-term debts, loans from Sinopec Group Company and fellow subsidiaries, deferred tax liabilities and other unallocated liabilities.
Information on the Group’s reportable segments is as follows:
|
|
|
Years ended December 31, |
|
||||
|
|
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
Sales of goods |
|
|
|
|
|
|
|
|
Exploration and production |
|
|
|
|
|
|
|
|
External sales |
|
57,740 |
|
47,443 |
|
69,168 |
|
|
Inter-segment sales |
|
71,019 |
|
58,954 |
|
77,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
128,759 |
|
106,397 |
|
146,972 |
|
|
Refining |
|
|
|
|
|
|
|
|
External sales |
|
120,650 |
|
102,983 |
|
132,478 |
|
|
Inter-segment sales |
|
800,962 |
|
747,317 |
|
874,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
921,612 |
|
850,300 |
|
1,006,749 |
|
|
Marketing and distribution |
|
|
|
|
|
|
|
|
External sales |
|
1,086,098 |
|
1,027,373 |
|
1,191,902 |
|
|
Inter-segment sales |
|
3,056 |
|
3,480 |
|
3,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,089,154 |
|
1,030,853 |
|
1,195,864 |
|
|
Chemicals |
|
|
|
|
|
|
|
|
External sales |
|
276,640 |
|
284,289 |
|
373,814 |
|
|
Inter-segment sales |
|
43,814 |
|
38,614 |
|
49,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
320,454 |
|
322,903 |
|
423,429 |
|
|
Corporate and others |
|
|
|
|
|
|
|
|
External sales |
|
436,749 |
|
418,102 |
|
533,108 |
|
|
Inter-segment sales |
|
345,454 |
|
320,367 |
|
440,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
782,203 |
|
738,469 |
|
973,411 |
|
|
Elimination of inter-segment sales |
|
(1,264,305 |
) |
(1,168,732 |
) |
(1,445,955 |
) |
|
|
|
|
|
|
|
|
|
|
Sales of goods |
|
1,977,877 |
|
1,880,190 |
|
2,300,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating revenues |
|
|
|
|
|
|
|
|
Exploration and production |
|
9,894 |
|
9,542 |
|
10,533 |
|
|
Refining |
|
5,004 |
|
5,486 |
|
5,104 |
|
|
Marketing and distribution |
|
17,512 |
|
22,004 |
|
28,333 |
|
|
Chemicals |
|
8,417 |
|
12,211 |
|
14,314 |
|
|
Corporate and others |
|
1,671 |
|
1,478 |
|
1,439 |
|
|
|
|
|
|
|
|
|
|
|
Other operating revenues |
|
42,498 |
|
50,721 |
|
59,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of goods and other operating revenues |
|
2,020,375 |
|
1,930,911 |
|
2,360,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
|
||||
|
|
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
Result |
|
|
|
|
|
|
|
|
Operating (loss)/income |
|
|
|
|
|
|
|
|
By segment |
|
|
|
|
|
|
|
|
- Exploration and production |
|
(17,418 |
) |
(36,641 |
) |
(45,944 |
) |
|
- Refining |
|
20,959 |
|
56,265 |
|
65,007 |
|
|
- Marketing and distribution |
|
28,855 |
|
32,153 |
|
31,569 |
|
|
- Chemicals |
|
19,476 |
|
20,623 |
|
26,977 |
|
|
- Corporate and others |
|
384 |
|
3,212 |
|
(4,484 |
) |
|
- Elimination |
|
4,566 |
|
1,581 |
|
(1,655 |
) |
|
|
|
|
|
|
|
|
|
|
Total segment operating income |
|
56,822 |
|
77,193 |
|
71,470 |
|
|
|
|
|
|
|
|
|
|
|
Share of profits/(losses) from associates and joint ventures |
|
|
|
|
|
|
|
|
- Exploration and production |
|
633 |
|
(1,203 |
) |
1,449 |
|
|
- Refining |
|
725 |
|
1,075 |
|
989 |
|
|
- Marketing and distribution |
|
1,379 |
|
2,362 |
|
2,945 |
|
|
- Chemicals |
|
3,343 |
|
5,696 |
|
9,621 |
|
|
- Corporate and others |
|
2,282 |
|
1,376 |
|
1,521 |
|
|
|
|
|
|
|
|
|
|
|
Aggregate share of profits from associates and joint ventures |
|
8,362 |
|
9,306 |
|
16,525 |
|
|
|
|
|
|
|
|
|
|
|
Investment income/(losses) |
|
|
|
|
|
|
|
|
- Exploration and production |
|
835 |
|
24 |
|
40 |
|
|
- Refining |
|
(8 |
) |
(4 |
) |
28 |
|
|
- Marketing and distribution |
|
70 |
|
90 |
|
90 |
|
|
- Chemicals |
|
41 |
|
119 |
|
86 |
|
|
- Corporate and others |
|
350 |
|
34 |
|
18 |
|
|
- Elimination |
|
(822 |
) |
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
Aggregate investment income |
|
466 |
|
263 |
|
262 |
|
|
|
|
|
|
|
|
|
|
|
Net finance costs |
|
(9,239 |
) |
(6,611 |
) |
(1,560 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings before income tax |
|
56,411 |
|
80,151 |
|
86,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
||||
|
|
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
Assets |
|
|
|
|
|
|
|
|
Segment assets |
|
|
|
|
|
|
|
|
- Exploration and production |
|
447,307 |
|
402,476 |
|
343,404 |
|
|
- Refining |
|
264,573 |
|
260,903 |
|
273,123 |
|
|
- Marketing and distribution |
|
283,416 |
|
292,328 |
|
309,727 |
|
|
- Chemicals |
|
151,646 |
|
144,371 |
|
158,472 |
|
|
- Corporate and others |
|
108,921 |
|
95,263 |
|
170,045 |
|
|
|
|
|
|
|
|
|
|
|
Total segment assets |
|
1,255,863 |
|
1,195,341 |
|
1,254,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest in associates and joint ventures |
|
84,293 |
|
116,812 |
|
131,087 |
|
|
Available-for-sale financial assets |
|
10,964 |
|
11,408 |
|
1,676 |
|
|
Deferred tax assets |
|
7,469 |
|
7,214 |
|
15,131 |
|
|
Cash and cash equivalents and time deposits with financial institutions |
|
69,666 |
|
142,497 |
|
165,004 |
|
|
Other unallocated assets |
|
19,013 |
|
25,337 |
|
27,835 |
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
1,447,268 |
|
1,498,609 |
|
1,595,504 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Segment liabilities |
|
|
|
|
|
|
|
|
- Exploration and production |
|
96,773 |
|
95,944 |
|
99,568 |
|
|
- Refining |
|
58,578 |
|
82,170 |
|
101,429 |
|
|
- Marketing and distribution |
|
118,897 |
|
133,303 |
|
164,101 |
|
|
- Chemicals |
|
27,243 |
|
32,072 |
|
35,293 |
|
|
- Corporate and others |
|
104,194 |
|
97,080 |
|
117,781 |
|
|
|
|
|
|
|
|
|
|
|
Total segment liabilities |
|
405,685 |
|
440,569 |
|
518,172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term debts |
|
41,517 |
|
56,239 |
|
55,338 |
|
|
Income tax payable |
|
1,048 |
|
6,051 |
|
13,015 |
|
|
Long-term debts |
|
95,446 |
|
72,674 |
|
55,804 |
|
|
Loans from Sinopec Group Company and fellow subsidiaries |
|
88,229 |
|
63,352 |
|
68,631 |
|
|
Deferred tax liabilities |
|
8,259 |
|
7,661 |
|
6,466 |
|
|
Other unallocated liabilities |
|
18,923 |
|
20,828 |
|
25,188 |
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
659,107 |
|
667,374 |
|
742,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31, |
|
||||
|
|
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
Capital expenditure |
|
|
|
|
|
|
|
|
Exploration and production |
|
54,710 |
|
32,187 |
|
31,344 |
|
|
Refining |
|
15,132 |
|
14,347 |
|
21,075 |
|
|
Marketing and distribution |
|
22,115 |
|
18,493 |
|
21,539 |
|
|
Chemicals |
|
17,634 |
|
8,849 |
|
23,028 |
|
|
Corporate and others |
|
2,821 |
|
2,580 |
|
2,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
112,412 |
|
76,456 |
|
99,384 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
Exploration and production |
|
52,155 |
|
61,929 |
|
66,843 |
|
|
Refining |
|
16,557 |
|
17,209 |
|
18,408 |
|
|
Marketing and distribution |
|
14,075 |
|
14,540 |
|
15,463 |
|
|
Chemicals |
|
12,088 |
|
12,654 |
|
12,873 |
|
|
Corporate and others |
|
1,585 |
|
2,093 |
|
1,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
96,460 |
|
108,425 |
|
115,310 |
|
|
|
|
|
|
|
|
|
|
|
Impairment losses on long-lived assets |
|
|
|
|
|
|
|
|
Exploration and production |
|
4,864 |
|
11,605 |
|
13,556 |
|
|
Refining |
|
9 |
|
1,655 |
|
1,894 |
|
|
Marketing and distribution |
|
19 |
|
267 |
|
675 |
|
|
Chemicals |
|
142 |
|
2,898 |
|
4,922 |
|
|
Corporate and others |
|
112 |
|
— |
|
211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,146 |
|
16,425 |
|
21,258 |
|
|
|
|
|
|
|
|
|
|
(2)Geographical information
The following tables set out information about the geographical information of the Group’s external sales and the Group’s non-current assets, excluding financial instruments and deferred tax assets. In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers, and segment assets are based on the geographical location of the assets.
|
|
|
Years ended December 31, |
|
||||
|
|
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
External sales |
|
|
|
|
|
|
|
|
Mainland China |
|
1,580,856 |
|
1,488,117 |
|
1,758,365 |
|
|
Singapore |
|
147,090 |
|
152,068 |
|
269,349 |
|
|
Others |
|
292,429 |
|
290,726 |
|
332,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,020,375 |
|
1,930,911 |
|
2,360,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December31, |
|
||||
|
|
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Mainland China |
|
1,029,318 |
|
1,000,209 |
|
979,329 |
|
|
Others |
|
56,081 |
|
45,887 |
|
48,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
1,085,399 |
|
1,046,096 |
|
1,027,901 |
|
|
|
|
|
|
|
|
|
|