荣盛石化：2024 First Quarterly Report

2024 First Quarterly Report 1 Stock code: 002493 Stock abbreviation: Rongsheng Petrochemical Announcement No.: 2024-035 Rongsheng Petrochemical Co., Ltd. 2024 First Quarterly Report The Company and all members of the Board of Directors warrant that the information disclosed is true, accurate and complete, and has no false representations, misleading statements or material omissions. Important notice: 1. The Board of Directors, the Board of Supervisors and the directors, supervisors and senior management warrant that the quarterly report is true, accurate, and complete and has no false representations, misleading statements or material omissions, and assume several and joint liabilities. 2. The person in charge of the Company, the person in charge of the accounting affairs and the person in charge of the accounting firm (accounting officer), hereby make representations in respect of the truthfulness, accuracy and completeness of the financial statements in this quarterly report. 3. Whether the First Quarterly Report has been audited □Yes No I. Key Financial Data (I) Key accounting data and financial indicators Whether the Company needs to retroactively adjust or restate prior years’ accounting data □Yes No Current reporting period Same period last year Increase/decrease in the current reporting period over the same period last year (%) Operating income (RMB) 81,088,312,171.8969,720,518,872.7716.30% Net profit attributable to shareholders of the listed company (RMB) 552,356,783.62 -1,467,816,809.90137.63% Net profit attributable to shareholders of the listed company net of non-recurring gain and loss (RMB) 474,627,417.74 -1,572,912,484.98130.18% 2024 First Quarterly Report 2 Net cash flow from operating activities (RMB) 4,129,270,983.86 -11,060,718,806.71137.33% Basic earnings per share (RMB per share) 0.06 -0.15140.00% Diluted earnings per share (RMB per share) 0.06 -0.15140.00% Weighted average return on net assets 1.24% -3.15% 4.39% End of the reporting period End of last year Increase/decrease at the end of the reporting period over the end of last year (%) Total assets (RMB) 380,804,493,762.52374,918,440,311.681.57% Owner’s equity attributable to shareholders of the listed company (RMB) 44,553,446,510.4544,335,891,085.790.49% (II) Items and amounts of non-recurring gain and loss Applicable □Not applicable Unit: RMB Items Amount in the current reporting period Notes Gains on disposal of non-current assets (including write-off of provision for impairment) 5,704,105.35 Government subsidies included in the current profits and losses (except those closely related to the Company's normal business operations, which are in line with national policies, enjoyed according to certain standards, and have a continuous impact on the Company's profits and losses) 2,972,352.08 Gains on changes in fair value of financial assets and financial liabilities held by non-financial enterprises, and gains from disposal of financial assets and financial liabilities, excluding those arising from hedging business related to operating activities 82,723,020.70 Fund possession charge from non-financial entities and included in profit or loss 107,025.15 Other non-operating revenues and expenditures except for the aforementioned items 7,013,519.03 Other profit/loss items falling within the definition of non-recurring gain or loss 21,037,340.56 Less: Affected amount of income tax 15,142,407.78 Affected amount of minority shareholders’ equity (after tax) 26,685,589.21 Total 77,729,365.88 -- Other gain/loss items falling within the definition of non-recurring gain or loss □Applicable Not applicable The Company has no other gain/loss items falling within the definition of non-recurring gain or loss. Explanation of the circumstances in which the non-recurring gain and loss items listed in the Explanatory Announcement No.1 on Information Disclosure of Companies Publicly Issuing Securities-Non-recurring Gains and Losses are defined as recurring gains and losses. □Applicable Not applicable The Company has no explanation of the circumstances in which the non-recurring gain and loss items listed in the 2024 First Quarterly Report 3 Explanatory Announcement No.1 on Information Disclosure of Companies Publicly Issuing Securities-Non-recurring Gains and Losses are defined as recurring gains and losses. (III) Changes in key accounting data and financial indicators and reasons thereof Applicable □Not applicable Unit：RMB 10,000 Balance sheet items Ending balance in the reporting period Ending balance of the previous year Variations Reasons for change Receivables financing 27,224.0017,503.6255.53% Mainly due to the increase in bankers’ acceptance bills for goods received by the Company Prepayment 321,307.01149,331.25115.16% Mainly due to the increase in prepayment for raw materials Employee benefits payable 47,559.90103,222.08 -53.92% Mainly due to the decrease in the Company’s outstanding employee remuneration payable at the end of the period Taxes and rates payable 168,142.6647,678.12252.66% Mainly due to the increase in consumption tax payable by the Company at the end of the period Income statement items Beginning of year to end of reporting period Same period last year Variations Reasons for change Financial expenses 189,530.61109,835.7072.56% Mainly due to the decrease in the Company’s foreign exchange gain in the current period Gain from change in fair value 2,525.8513,898.88 -81.83% Mainly due to the decrease in the Company’s floating income from paper goods in the current period Other income 35,242.185,159.51583.05% Mainly due to tax credits of the Company in accordance with policies in the current period Investment income -2,990.563,825.47 -178.17% Mainly due to the decrease in the Company’s long-term equity income accounted for under the equity method in the current period Income tax expenses 17,146.18 -63,207.60 -127.13% Mainly due to the increase in income tax expense as a result of the increase in total profit compared with the same period last year Cash flow statement items Beginning of year to end of reporting period Same period last year Variations Reasons for change Net cash flow from operating activities 412,927.10 -1,106,071.88 -137.33% Mainly due to the year-on-year increase in net cash receipts from the Company’s purchases and sales in the current period Net cash flow from investment activities -945,571.54 -703,650.5934.38% Mainly due to the increase in cash paid for long-term assets acquired by the Company in the current period Net cash flow from financing 1,435,269.971,945,595.0726.23% Mainly due to the decrease in net increase in the 2024 First Quarterly Report 4 activities Company’s bank borrowings year-on-year II. Shareholders’ Information (I) Total number of shareholders of ordinary shares and shareholders of preferred shares with restored voting rights, and shareholdings of the top ten shareholders Unit: share Total number of common shareholders at the end of the reporting period 100,234 Total number of shareholders of preferred shares with restored voting rights at the end of the reporting period (if any) 0 Top 10 shareholders (excluding shares lent through refinancing) Name of shareholders Nature of shareholder Shareholding ratio （%） Number of shares held Number of shares held subject to sales restrictions Pledge, marking or freezing Status of shares Number Zhejiang Rongsheng Holding Group Co., Ltd. Domestic non-state-owned legal person 51.81% 5,246,113,794 N/A Aramco Overseas Company B.V. Foreign legal person 10.00% 1,012,552,501 N/A Li Shuirong Domestic natural person 6.35% 643,275,000482456250 N/A Hong Kong Securities Clearing Company Limited Foreign legal person 1.54% 156,142,384 N/A Li Guoqing Domestic natural person 0.95% 96,525,00072393750 N/A Xu Yuejuan Domestic natural person 0.95% 96,525,000 N/A Li Yongqing Domestic natural person 0.95% 96,525,00072393750 N/A Horizon Asset - Huaneng Trust · Jiayue No.7 Single Fund Trust - Horizon Asset Huixin No.43 Single Asset Management Plan Others 0.54% 55,148,287 N/A Huaneng Guicheng Trust Corporation Limited - Huaneng Trust · Rongyue Weicheng Pooled Fund Trust Plan Others 0.49% 50,078,500 N/A Ni Xincai Domestic natural person 0.47% 47,925,000 N/A 2024 First Quarterly Report 5 Shareholdings of the top 10 shareholders not subject to sales restrictions Name of shareholders Number of shares held without sales restrictions Class of shares Class of shares Number Zhejiang Rongsheng Holding Group Co., Ltd.5,246,113,794 RMB ordinary shares 5,246,113,794 Aramco Overseas Company B.V.1,012,552,501 RMB ordinary shares 1,012,552,501 Li Shuirong 160,818,750 RMB ordinary shares 160,818,750 Hong Kong Securities Clearing Company Limited 156,142,384 RMB ordinary shares 156,142,384 Xu Yuejuan 96,525,000 RMB ordinary shares 96,525,000 Horizon Asset - Huaneng Trust · Jiayue No.7 Single Fund Trust - Horizon Asset Huixin No.43 Single Asset Management Plan 55,148,287 RMB ordinary shares 55,148,287 Huaneng Guicheng Trust Corporation Limited - Huaneng Trust · Rongyue Weicheng Pooled Fund Trust Plan 50,078,500 RMB ordinary shares 50,078,500 Ni Xincai 47,925,000 RMB ordinary shares 47,925,000 Hangzhou Mingzhu Enterprise Management Partnership (Limited Partnership) 39,838,466 RMB ordinary shares 39,838,466 Penghua Fund - China Life Insurance Co., Ltd. - Participating Insurance - Penghua Fund State Life Stock Growth Equity Portfolio Single Asset Management Plan (Available for Sale) 36,595,081 RMB ordinary shares 36,595,081 Explanation of the relationship or concerted action among the above shareholders Among the top 10 shareholders, Zhejiang Rongsheng Holding Group Co., Ltd. is the controlling shareholder of the Company, Li Yongqing and Li Guoqing are nephews of Li Shuirong, Chairman of the Board of Directors of Zhejiang Rongsheng Holding Group Co., Ltd., Xu Yuejuan is sister-in-law of Li Shuirong, and Ni Xincai is the brother-in-law of Li Shuirong, forming associated relationships. In addition to the above associated relationships, the Company has no knowledge of whether other shareholders are related to each other or act in concert. Explanation of the top 10 shareholders’ participation in securities margin trading (if any) Zhejiang Rongsheng Holding Group Co., Ltd. holds 5,206,113,794 shares through an ordinary account and 40,000,000 shares through a credit account. Note: Among the top 10 shareholders, Rongsheng Petrochemical Co., Ltd. held 552,380,458 shares in its special securities account for repurchase, accounting for 5.46% of the Company’s total share capital. The lending of shares by the shareholders holding more than 5% of shares, top ten shareholders and top ten shareholders of circulating shares not subject to selling restrictions in the refinancing business □Applicable Not applicable Change from the previous period due to lending/returning of shares from/to the top ten shareholders and top ten shareholders of circulating shares not subject to selling restrictions in the refinancing business □Applicable Not applicable 2024 First Quarterly Report 6 (II) The total number of shareholders of preferred shares of the Company and the shareholdings of the top 10 shareholders of preferred shares □Applicable Not applicable III. Other Important Matters □Applicable Not applicable IV. Quarterly Financial Statements (I) Financial statements 1. Consolidated balance sheet Prepared by: Rongsheng Petrochemical Co., Ltd. March 31,2024 Unit: RMB Items Closing balance Opening balance Current assets: Monetary fund 22,085,427,589.4813,070,255,466.02 Settlement funds Loans to other banks Held-for-trading financial assets 278,313,692.91310,087,429.45 Derivative financial assets Notes receivable Accounts receivable 4,527,525,896.224,737,733,703.66 Receivables financing 272,239,966.60175,036,242.93 Advances paid 3,213,070,069.101,493,312,465.86 Premiums receivable Reinsurance accounts receivable Reinsurance contract reserve receivable Other receivables 4,283,783,859.944,510,228,597.49 Including: Interest receivables Dividends receivable Redemptory monetary capital for sale Inventories 55,237,461,019.2861,733,657,342.07 Including: Data resources 2024 First Quarterly Report 7 Contract assets Assets held for sale Non-current assets due within one year Other current assets 4,635,885,805.305,297,128,974.31 Total current assets 94,533,707,898.8391,327,440,221.79 Non-current assets: Loans and advances Debt investments Other debt investments Long-term receivables Long-term equity investments 9,262,885,084.009,183,711,444.96 Other equity instrument investments Other non-current financial assets Investment property 10,327,713.1010,395,574.60 Fixed assets 215,959,642,059.52219,699,679,397.52 Construction in progress 48,217,275,287.3641,820,671,070.59 Productive biological assets Oil & gas assets Right-of-use assets 196,334,314.98200,102,141.16 Intangible assets 8,047,209,820.837,128,930,412.44 Including: Data resources Development expenditures Including: Data resources Goodwill Long-term deferred expense 45,701.13 Deferred tax assets 721,038,004.97690,808,878.08 Other non-current assets 3,856,073,578.934,856,655,469.41 Total non-current assets 286,270,785,863.69283,591,000,089.89 Total assets 380,804,493,762.52374,918,440,311.68 Current liabilities: Short-term borrowings 49,478,542,204.6644,810,936,767.94 Central bank loans Loans from other banks 2024 First Quarterly Report 8 Held-for-trading financial liabilities 588,321,308.64623,298,741.33 Derivative financial liabilities Notes payable 4,029,642,868.754,195,471,402.63 Accounts payable 47,176,093,945.4749,744,126,901.38 Advances received Contract liabilities 3,263,730,848.764,421,732,432.83 Financial liabilities under repo Absorbing deposit and interbank deposit Deposits for agency security transaction Deposits for agency security underwriting Employee benefits payable 475,598,983.901,032,220,776.56 Taxes and rates payable 1,681,426,588.75476,781,167.70 Other payables 15,425,993,518.1416,919,133,504.47 Including: Interests payable Dividends payable 228,000,000.00228,000,000.00 Handling fees and commissions payable Reinsurance accounts payable Liabilities held for sale Non-current liabilities due within one year 30,509,962,010.1530,286,684,174.81 Other current liabilities 406,698,171.24551,990,844.96 Total current liabilities 153,036,010,448.46153,062,376,714.61 Non-current liabilities: Insurance policy reserve Long-term borrowings 130,264,385,948.41125,179,583,821.18 Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities 187,732,441.45193,002,312.38 Long-term payables Long-term employee benefits payable Estimated liabilities Deferred income 188,983,856.17195,581,593.25 Deferred income liabilities 1,691,713,181.181,619,074,228.97 2024 First Quarterly Report 9 Other non-current liabilities Total non-current liabilities 132,332,815,427.21127,187,241,955.78 Total liabilities 285,368,825,875.67280,249,618,670.39 Owner’s equity: Share capital 10,125,525,000.0010,125,525,000.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserve 10,825,808,139.1510,825,322,259.36 Less: Treasury shares 6,979,971,201.566,619,807,176.02 Other comprehensive income 129,834,223.20110,203,866.35 Special reserve 65,923,726.8560,677,296.91 Surplus reserve 974,151,644.68974,151,644.68 General risk reserve Undistributed profit 29,412,174,978.1328,859,818,194.51 Total equity attributable to the parent company 44,553,446,510.4544,335,891,085.79 Minority equity 50,882,221,376.4050,332,930,555.50 Total equity 95,435,667,886.8594,668,821,641.29 Total liabilities & equity 380,804,493,762.52374,918,440,311.68 Legal representative: Li Shuirong Officer in charge of accounting: Wang Yafang Head of accounting firm: Zhang Shaoying 2. Consolidated income statement Unit: RMB Items Current period cumulative Preceding period comparative I. Total operating revenue 81,088,312,171.8969,720,518,872.77 Including: operating revenue 81,088,312,171.8969,720,518,872.77 Interest income Premiums earned Handling fees and commissions II. Total operating cost 80,129,366,950.9373,384,892,565.73 Including: Operating cost 69,689,532,945.0766,685,174,009.31 Interest expenses Handling fees and commissions 2024 First Quarterly Report 10 Surrender value Net payment of insurance claims Net appropriation of reserves for insurance liability Premium bonus expenditures Reinsurance expenses Taxes and surcharges 7,108,078,282.934,110,642,568.99 Selling expenses 37,189,397.0453,674,363.56 Administrative expenses 206,168,697.22178,948,175.23 R&D expenses 1,193,091,516.381,258,096,443.54 Financial expenses 1,895,306,112.291,098,357,005.10 Including: Interest expenses 1,813,336,399.311,820,192,217.50 Interest income 118,530,661.38159,489,774.49 Add: Other income 352,421,758.5451,595,149.78 Investment income (losses expressed with “-”) -29,905,606.9538,254,714.92 Including: Investment income from associates and joint ventures 68,496,162.46180,578,618.18 Gains from derecognition of financial assets at amortized cost Exchange gains (losses expressed with “-”) Net exposure hedging gains (losses expressed with “-”) Gains on changes in fair value (losses expressed with “-”) 25,258,522.19138,988,806.17 Credit impairment loss (losses expressed with “-”) -48,263,256.65 -57,970,985.04 Loss on assets impairment (losses marked with “-”) -981,692.18 Gains on disposal of assets (losses expressed with “-”) 5,704,105.35 III. Operating profit (losses expressed with “-”) 1,263,179,051.26 -3,493,506,007.13 Add: non-operating income 7,569,246.13153,882.31 Less: non-operating expenses 557,313.60213,368.18 IV. Total profits (total losses expressed with “-”) 1,270,190,983.79 -3,493,565,493.00 Less: income tax expenses 171,461,784.77 -632,075,994.21 V. Net profit (net losses expressed with “-”) 1,098,729,199.02 -2,861,489,498.79 (I) By business continuity 1. Net profit from going concern (net losses expressed with “-”) 1,098,729,199.02 -2,861,489,498.79 2. Net profit from discontinued operations (net losses expressed with “-”) 2024 First Quarterly Report 11 (II) By ownership 1. Net profit attributable to the owner of the parent company 552,356,783.62 -1,467,816,809.90 2. Minority equity income 546,372,415.40 -1,393,672,688.89 VI. Other comprehensive income, net of tax 16,749,448.693,465,785.57 After-tax net of other comprehensive income attributable to the owners of parent company 19,630,356.8515,828,559.46 (I) Not to be reclassified subsequently to profit or loss -590,642.24 1. Re-measurement of changes in defined benefit plans 2. Other comprehensive income which may not be transferred to gain and loss under the equity method 3. Changes in fair value of investment in other equity instruments 4. Changes in fair value of the credit risk of the Company 5. Others -590,642.24 (II) Other comprehensive income which may be reclassified to gain and loss 20,220,999.0915,828,559.46 1. Other comprehensive income which may be transferred to gain and loss under the equity method 12,582,979.88 -50,033,754.51 2. Changes in fair value of other creditors investment 3. Amount of financial assets reclassified into other comprehensive income 4. Provision for credit impairment of other creditors investments 5. Cash flow hedging reserves 6. Difference in translation of foreign currency financial statements 7,638,019.2165,862,313.97 7. Others Other comprehensive income attributable to minority shareholders, net of tax -2,880,908.16 -12,362,773.89 VII. Total comprehensive income 1,115,478,647.71 -2,858,023,713.22 Total comprehensive income attributable to owners of the parent company 571,987,140.47 -1,451,988,250.44 Total comprehensive income attributable to minority shareholders 543,491,507.24 -1,406,035,462.78 VIII. Earnings per share: (I) Basic earnings per share 0.06 -0.15 (II) Diluted earnings per share 0.06 -0.15 Legal representative: Li Shuirong Officer in charge of accounting: Wang Yafang Head of accounting firm: Zhang Shaoying 2024 First Quarterly Report 12 3. Consolidated cash flow statement Unit: RMB Items Current period cumulative Preceding period comparative I. Cash flow from operating activities: Cash received from sales of goods or rendering of services 88,428,593,585.7682,509,656,914.92 Net increase in deposits from customers and other banks Net increase in borrowings from the central bank Net increase in loans from other financial institutions Cash received from receiving insurance premium of original insurance contracts Net cash received from reinsurance business Net increase in deposits and investment of the insured Cash received from interests, handling charges and commissions Net increase in borrowing funds Net increase in repurchase business capital Net cash received from securities trading agency Refunds of taxes and levies 1,958,361,629.02658,735,846.53 Cash received relating to other operating activities 1,795,724,448.595,192,111,220.30 Subtotal of cash inflows for operating activities 92,182,679,663.3788,360,503,981.75 Cash paid for goods purchased and services received 79,836,272,551.2289,887,358,266.15 Net increase in loans and advances to customers Net increase in deposits with the central bank and other banks Cash paid for claims under original insurance contracts Net increase in lending funds Cash paid for interests, handling charges and commissions Cash paid for policy dividends Cash paid to and on behalf of employees 1,558,998,186.281,482,689,220.34 Payments of all types of taxes 5,112,583,789.963,970,279,709.58 Cash paid relating to other operating activities 1,545,554,152.054,080,895,592.39 Subtotal of cash outflows from operating activities 88,053,408,679.5199,421,222,788.46 Net cash flow from operating activities 4,129,270,983.86 -11,060,718,806.71 II. Cash flows from investing activities: Cash received from investment recovery 761,449,460.70886,211,784.32 2024 First Quarterly Report 13 Cash received from the return on investment Net cash received from the disposal of fixed assets, intangible assets and other long-term assets 222,923,497.09 Net cash received from the disposal of subsidiaries and other business units Cash received relating to other investing activities 26,899,512.55186,696,347.40 Subtotal of cash inflows from investing activities 1,011,272,470.341,072,908,131.72 Cash paid for purchase and construction of fixed assets, intangible assets and other long-term assets 9,942,349,586.696,883,187,849.56 Cash paid for investments 424,646,154.66915,284,882.03 Net increase in pledge loans Net cash paid for acquisition of subsidiaries and other business units Cash paid relating to other investing activities 99,992,166.91310,941,341.34 Subtotal of cash outflows from investing activities 10,466,987,908.268,109,414,072.93 Net cash flow from investment activities -9,455,715,437.92 -7,036,505,941.21 III. Cash flow from financing activities: Cash received from absorption of investment Including: cash received by subsidiaries from investments of minority shareholders Cash received from borrowings 36,543,200,351.2444,117,219,620.50 Cash received relating to other financing activities 9,448,341,833.321,656,000,000.00 Subtotal of cash inflows from financing activities 45,991,542,184.5645,773,219,620.50 Cash paid for repayment of debts 26,952,016,657.6221,754,327,896.96 Cash paid for distribution of dividends and profits or payment of interests 1,969,038,091.061,988,636,959.14 Including: dividends or profits paid by subsidiaries to minority shareholders Cash paid relating to other financing activities 2,717,787,689.432,574,304,070.24 Subtotal of cash outflows from financing activities 31,638,842,438.1126,317,268,926.34 Net cash flow from financing activities 14,352,699,746.4519,455,950,694.16 IV. Effect of change in exchange rate on cash and cash equivalents -95,200,192.77632,793,172.41 V. Net increase in cash and cash equivalents 8,931,055,099.621,991,519,118.65 Add: opening balance of cash and cash equivalents 11,486,855,097.5115,459,279,803.77 VI. Ending balance of cash and cash equivalents 20,417,910,197.1317,450,798,922.42 2024 First Quarterly Report 14 (II) Financial statements related to adjustments to items at the beginning of the year of first-time implementation of new accounting standards from 2024 onwards □Applicable Not applicable (III) Audit report Whether the First Quarterly Report has been audited □Yes No The First Quarterly Report of the Company has not been audited. Board of Directors of Rongsheng Petrochemical Co., Ltd. April 29,2024 I. Key Financial Data (I) Key accounting data and financial indicators (II) Items and amounts of non-recurring gain and loss (III) Changes in key accounting data and financial indicators and reasons thereof II. Shareholders’ Information (I) Total number of shareholders of ordinary shares and shareholders of preferred shares with restored voting rights, and shareholdings of the top ten shareholders (II) The total number of shareholders of preferred shares of the Company and the shareholdings of the top 10 shareholders of preferred shares III. Other Important Matters IV. Quarterly Financial Statements (I) Financial statements 1. Consolidated balance sheet 2. Consolidated income statement 3. Consolidated cash flow statement (II) Financial statements related to adjustments to items at the beginning of the year of first-time implementation of new accounting standards from 2024 onwards (III) Audit report