20. INTEREST IN JOINT VENTURES
The Group’s principal interests in joint ventures which are incorporated companies are as follows:
|
Name of company |
|
Country of |
|
Particulars of |
|
Percentage of |
|
Percentage of |
|
Principal activities |
|
Principal |
|
|
|
|
|
|
|
% |
|
% |
|
|
|
|
|
Fujian Refining & Petrochemical Company Limited (“FREP”) |
|
PRC |
|
Registered capital RMB 14,758 million |
|
— |
|
50.00 |
|
Manufacturing refining oil products |
|
PRC |
|
BASF-YPC Company Limited (“BASF-YPC”) |
|
PRC |
|
Registered capital RMB 12,547 million |
|
30.00 |
|
10.00 |
|
Manufacturing and distribution of petrochemical products |
|
PRC |
|
Taihu Limited (“Taihu”) |
|
Cyprus |
|
Registered capital USD 25,000 |
|
— |
|
49.00 |
|
Crude oil and natural gas extraction |
|
Russia |
|
Yanbu Aramco Sinopec Refining |
|
Saudi Arabia |
|
Registered capital USD 1,560 million |
|
— |
|
37.50 |
|
Petroleum refining and processing business |
|
Saudi Arabia |
|
Sinopec SABIC Tianjin Petrochemical Company Limited (“Sinopec SABIC Tianjin”) |
|
PRC |
|
Registered capital RMB 9,796 million |
|
— |
|
50.00 |
|
Manufacturing and distribution of petrochemical products |
|
PRC |
Summarized balance sheet and reconciliation to their carrying amounts in respect of the Group’s principal joint ventures:
|
|
|
FREP |
|
BASF-YPC |
|
Taihu |
|
YASREF |
|
Sinopec SABIC |
|
||||||||||
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
||||||||||
|
|
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
8,172 |
|
5,772 |
|
1,394 |
|
1,800 |
|
1,165 |
|
2,352 |
|
1,259 |
|
4,916 |
|
3,634 |
|
6,524 |
|
|
Other current assets |
|
10,269 |
|
11,013 |
|
4,852 |
|
5,335 |
|
1,616 |
|
2,462 |
|
6,826 |
|
10,816 |
|
1,886 |
|
2,709 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
18,441 |
|
16,785 |
|
6,246 |
|
7,135 |
|
2,781 |
|
4,814 |
|
8,085 |
|
15,732 |
|
5,520 |
|
9,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
21,903 |
|
19,740 |
|
13,530 |
|
12,075 |
|
8,279 |
|
7,978 |
|
57,054 |
|
51,553 |
|
14,003 |
|
13,248 |
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current financial liabilities (i) |
|
(1,781 |
) |
(1,135 |
) |
(783 |
) |
(233 |
) |
(334 |
) |
(20 |
) |
(1,187 |
) |
(5,407 |
) |
— |
|
(1,236 |
) |
|
Other current liabilities |
|
(4,643 |
) |
(5,049 |
) |
(2,107 |
) |
(1,982 |
) |
(1,616 |
) |
(1,914 |
) |
(6,466 |
) |
(11,864 |
) |
(2,657 |
) |
(4,546 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
(6,424 |
) |
(6,184 |
) |
(2,890 |
) |
(2,215 |
) |
(1,950 |
) |
(1,934 |
) |
(7,653 |
) |
(17,271 |
) |
(2,657 |
) |
(5,782 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current financial liabilities (ii) |
|
(19,985 |
) |
(13,654 |
) |
(1,492 |
) |
(955 |
) |
(49 |
) |
(72 |
) |
(43,028 |
) |
(35,619 |
) |
(5,337 |
) |
(4,101 |
) |
|
Other non-current liabilities |
|
(252 |
) |
(236 |
) |
(10 |
) |
(19 |
) |
(2,130 |
) |
(2,686 |
) |
(1,004 |
) |
(890 |
) |
(32 |
) |
(41 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current liabilities |
|
(20,237 |
) |
(13,890 |
) |
(1,502 |
) |
(974 |
) |
(2,179 |
) |
(2,758 |
) |
(44,032 |
) |
(36,509 |
) |
(5,369 |
) |
(4,142 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
13,683 |
|
16,451 |
|
15,384 |
|
16,021 |
|
6,931 |
|
8,100 |
|
13,454 |
|
13,505 |
|
11,497 |
|
12,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets attributable to owners of the company |
|
13,683 |
|
16,451 |
|
15,384 |
|
16,021 |
|
6,690 |
|
7,818 |
|
13,454 |
|
13,505 |
|
11,497 |
|
12,557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets attributable to non-controlling interests |
|
— |
|
— |
|
— |
|
— |
|
241 |
|
282 |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of net assets from joint ventures |
|
6,842 |
|
8,226 |
|
6,154 |
|
6,409 |
|
3,278 |
|
3,831 |
|
5,045 |
|
5,064 |
|
5,749 |
|
6,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (iii) |
|
— |
|
— |
|
— |
|
— |
|
743 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying Amounts |
|
6,842 |
|
8,226 |
|
6,154 |
|
6,409 |
|
4,021 |
|
3,831 |
|
5,045 |
|
5,064 |
|
5,749 |
|
6,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summarized statement of comprehensive income
|
|
|
FREP |
|
BASF-YPC |
|
Taihu |
|
YASREF(i) |
|
Sinopec SABIC |
|
||||||||||||||||||||
|
Year ended |
|
2015 |
|
2016 |
|
2017 |
|
2015 |
|
2016 |
|
2017 |
|
2015 |
|
2016 |
|
2017 |
|
2015 |
|
2016 |
|
2017 |
|
2015 |
|
2016 |
|
2017 |
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
RMB |
|
|
Operating revenues |
|
48,758 |
|
41,764 |
|
49,356 |
|
15,430 |
|
17,323 |
|
21,020 |
|
10,725 |
|
9,658 |
|
12,520 |
|
31,823 |
|
41,286 |
|
61,587 |
|
18,868 |
|
16,337 |
|
22,286 |
|
|
Depreciation, depletion and amortization |
|
(53 |
) |
(52 |
) |
(16 |
) |
(2,312 |
) |
(2,275 |
) |
(1,793 |
) |
(1,279 |
) |
(1,043 |
) |
(715 |
) |
(1,915 |
) |
(2,754 |
) |
(2,763 |
) |
(32 |
) |
(33 |
) |
(36 |
) |
|
Interest income |
|
33 |
|
130 |
|
208 |
|
29 |
|
19 |
|
36 |
|
— |
|
40 |
|
142 |
|
13 |
|
33 |
|
45 |
|
36 |
|
30 |
|
104 |
|
|
Interest expense |
|
(1,130 |
) |
(929 |
) |
(857 |
) |
(239 |
) |
(173 |
) |
(71 |
) |
(119 |
) |
(113 |
) |
(142 |
) |
(721 |
) |
(1,216 |
) |
(1,382 |
) |
(458 |
) |
(245 |
) |
(223 |
) |
|
Earning/(loss) before income tax |
|
3,857 |
|
6,476 |
|
6,977 |
|
214 |
|
2,606 |
|
4,565 |
|
3,455 |
|
2,411 |
|
1,697 |
|
(259 |
) |
28 |
|
548 |
|
2,719 |
|
3,184 |
|
5,113 |
|
|
Tax expense |
|
(918 |
) |
(1,574 |
) |
(1,699 |
) |
(56 |
) |
(648 |
) |
(1,151 |
) |
(733 |
) |
(518 |
) |
(553 |
) |
13 |
|
56 |
|
57 |
|
(522 |
) |
(783 |
) |
(1,279 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss) for the year |
|
2,939 |
|
4,902 |
|
5,278 |
|
158 |
|
1,958 |
|
3,414 |
|
2,722 |
|
1,893 |
|
1,144 |
|
(246 |
) |
84 |
|
605 |
|
2,197 |
|
2,401 |
|
3,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss)/income |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(2,633 |
) |
1,851 |
|
25 |
|
738 |
|
647 |
|
(554 |
) |
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
2,939 |
|
4,902 |
|
5,278 |
|
158 |
|
1,958 |
|
3,414 |
|
89 |
|
3,744 |
|
1,169 |
|
492 |
|
731 |
|
51 |
|
2,197 |
|
2,401 |
|
3,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared by joint ventures |
|
— |
|
— |
|
1,250 |
|
470 |
|
155 |
|
1,109 |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
225 |
|
300 |
|
1,375 |
|
|
Share of net income/(loss) from joint ventures |
|
1,470 |
|
2,451 |
|
2,639 |
|
63 |
|
783 |
|
1,366 |
|
1,287 |
|
895 |
|
541 |
|
(92 |
) |
31 |
|
227 |
|
1,099 |
|
1,201 |
|
1,917 |
|
|
Share of other comprehensive (loss)/income from joint ventures (iv) |
|
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
(1,245 |
) |
875 |
|
12 |
|
277 |
|
243 |
|
(208 |
) |
— |
|
— |
|
— |
|
The share of net income for the years ended December 31, 2015, 2016 and 2017 in all individually immaterial joint ventures accounted for using equity method in aggregate were RMB 960, RMB 2,061 and RMB 3,925, respectively.
The share of other comprehensive (loss)/income for the years ended December 31, 2015, 2016 and 2017 in all individually immaterial joint ventures accounted for using equity method in aggregate were a loss of RMB 1,761, a loss of RMB 934 and a gain of RMB 994, respectively.
The carrying amount as of year ended December 31, 2016 and 2017 of all individually immaterial joint ventures accounted for using equity method in aggregate were RMB 22,885 and RMB 21,552, respectively.
Note:
|
(i) |
Excluding trade accounts payable and other payables. |
|
(ii) |
Excluding provisions. |
|
(iii) |
Other reflects the excess of fair value of the consideration transferred over the Group’s share of the fair value of the investee’s identifiable assets and liabilities as of the acquisition date. |
|
(iv) |
Including foreign currency translation differences. |