SPTJF Shanghai Petrochemical Co Ltd (PK)

Number

/s/ Wan Tao

IMPORTANT MESSAGE

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.

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.

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

MAJOR ACCOUNTING DATA

Major Financial Report Items and Financial Indicators

Increase/

decrease during

the Reporting

Period as

compared

to 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

After

adjustment

After

adjustment

Revenue

Net profit attributable to equity shareholders of the Company

Net profit attributable to equity shareholders of the Company excluding non-recurring items

Net cash flows generated from operating activities

Basic earnings per share (RMB/share)

Diluted earnings per share (RMB/share)

Return on net assets (weighted average) (%)

As at the

end of the

Total assets

Total equity attributable to equity shareholders of the Company

Excluded Non-recurring Items and Amount

Item

Note

Earnings or losses on disposal of non-current assets

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

Other non-operating income and expenses other than those mentioned above

Item

Note

Other earnings or losses meeting the definition of non-recurring earnings or losses

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

Effect on non-controlling interests (after tax)

Total

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

Item

Major reason

Operating Profit_during the Reporting Period

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.

Item

Major reason

Net profit attributable to equity shareholders of the Company_ from the beginning of the year to the end of the Reporting Period

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.

SHAREHOLDERS’ INFORMATION

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

Number of shareholders as at the end of the Reporting Period

Shareholdings of the top ten shareholders

Name of shareholder

Type of

shareholder

China Petroleum & Chemical Corporation

HKSCC (Nominees) Limited

HKSCC Limited

Wang Lei

Southern Fund– Agricultural Bank of China – Southern CSI Financial Asset Management Plan

GF Fund – Agricultural Bank of China – GF CSI Financial Asset Management Plan

Yinhua Fund– Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan

Dacheng Fund – Agricultural Bank of China – Dacheng CSI Financial Asset Management Plan

Bosera Fund – Agricultural Bank of China – Bosera CSI Financial Asset Management Plan

Harvest Fund – Agricultural Bank of China – Harvest CSI Financial Asset Management Plan

Shareholdings of the top ten shareholders with unrestricted shares

Name of shareholder

Type and quantity of shares

Type of shares

China Petroleum & Chemical Corporation

HKSCC (Nominees) Limited

HKSCC Limited

Wang Lei

Southern Fund– Agricultural Bank of China – Southern CSI Financial Asset Management Plan

GF Fund – Agricultural Bank of China – GF CSI Financial Asset Management Plan

Yinhua Fund– Agricultural Bank of China – Yinhua CSI Financial Asset Management Plan

Dacheng Fund – Agricultural Bank of China – Dacheng CSI Financial Asset Management Plan

Bosera Fund – Agricultural Bank of China – Bosera CSI Financial Asset Management Plan

Harvest Fund – Agricultural Bank of China – Harvest CSI Financial Asset Management Plan

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)

OTHER REMINDERS

QUARTERLY FINANCIAL REPORT

Type of Audit Opinions

The financial report

As at

30 September

2023

As at

31 December

2022

Current assets:

Cash at bank and on hand

Derivative financial assets

Account receivable

Receivables under financing

Prepayments

Other receivables

Inventories

Other current assets

Total current assets

Non-current assets:

Long-term equity investments

Other equity instrument investment

Other non-current financial assets

Investment properties

Fixed assets

Construction in progress

Right-of-use assets

Intangible assets

Long-term prepaid expenses

Deferred tax assets

Other non-current assets

Total non-current assets

Total assets

As at

30 September

2023

As at

31 December

2022

Current liabilities:

Short-term borrowings

Derivative financial liabilities

Notes payable

Accounts payable

Contract liabilities

Employee benefits payable

Taxes payable

Other payables

Non-current liabilities due within one year

Other current liabilities

Total current liabilities

Non-current liabilities:

Long-term borrowing

Lease liabilities

Deferred revenue

Deferred tax liabilities

Total non-current liabilities

Total liabilities

Owners’ equity (or shareholders’ equity):

Paid-in capital (or share capital)

Capital surplus

Less: Treasury stock

Other comprehensive income

Specific reserve

Surplus reserve

Undistributed profits

Total equity attributable to owners (or shareholders) of the Company

Non-controlling interests

Total owners’ equity (or shareholders’ equity)

Total liabilities and owners’ equity (or shareholders’ equity)

First three

quarters of

2023 (January

to September)

First three

quarters of

2022 (January

to September)

1.  Total revenue

    Including: Revenue

2.  Total operating cost

    Including: Cost of sales

Taxes and surcharges

Selling and distribution expenses

General and administrative expenses

R&D expenses

Financial expenses

Add: Other income

Investment income (“-” to indicate loss)

Profit arising from changes in fair value (“-” to indicate loss)

Credit impairment losses (“-” to indicate loss)

Asset impairment losses (“-” to indicate loss)

Gains on disposal of assets (“-” to indicate loss)

3.  Operating profit (“-” to indicate loss)

    Add: Non-operating income

    Less: Non-operating expenses

4.  Total profit (“-” to indicate loss)

    Less: Income tax expenses

5.  Net Profit (“-” to indicate loss)

(1)  Classification by business continuity

1. Profit from continuing operations (“-” to indicate loss)

(2)  Classification by ownership

1. Attributable to equity shareholders of the Company (“-” to indicate loss)

2. Non-controlling interests (“-” to indicate loss)

First three

quarters of

2023 (January

to September)

First three

quarters of

2022 (January

to September)

6.  Other comprehensive income, net of tax

(1)  Other comprehensive income, net of tax attributable to owners of the Company

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

(1)  Items that may be reclassified to profit or loss using the equity method

(2)  Cash flow hedging reserves

(2)  Other comprehensive income, net of tax attributable to non-controlling interests

7.  Total comprehensive income

(1)  Attributable to owners of the Company

(2)  Attributable to non-controlling interests

8.  Earnings per share:

(1)  Basic earnings per share (RMB/share)

(2)  Diluted earnings per share (RMB/share)

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

Tax refund received

Cash received relating to other operating activities

Sub-total of cash inflows

Cash paid for goods and services

Cash paid to and on behalf of employees

Payments of taxes and surcharges

Cash paid relating to other operating activities

Sub-total of cash outflows

Net cash flows generated from operating activities

2.  Cash flows from investing activities:

Cash received from investment recovery

Cash received from returns on investments

Net cash received from disposal of fixed assets, intangible assets and other long-term assets

Cash received relating to other investing activities

Sub-total of cash inflows

Cash paid to acquire fixed assets, intangible assets and other long-term assets

Cash paid for investment

Net cash received from subsidiaries and other business units

Cash paid to other related investment activities

Sub-total of cash outflows

Net cash flows generated from investment activities

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

Cash received from short-term bonds

Sub-total of cash inflows

Cash repayments of borrowings

Cash repayments of short-term bonds

Cash paid for distribution of dividends or profits and interest expenses

Cash and interest repaid for lease liabilities

Sub-total of cash outflows

Net cash flows generated from financing activities

4.  Effect of foreign exchange rate changes on cash and cash equivalents

5.  Net increase in cash and cash equivalents

Add: Cash and cash equivalents at beginning of the reporting period

6.  Cash and cash equivalents at end of the reporting period

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

Impacts of the change on the comparative financial report

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

Deferred income tax relating to assets and liabilities arising from an individual transaction does not apply to the impact of initial recognition exemptions

Adjusted net loss and equity

As at 31

December

2022 before

adjustment

As at 31

December

2022 after

adjustment

Non-current assets:

Deferred tax assets

Total non-current assets

Total assets

Non-current liabilities:

Deferred tax liabilities

Total non-current liabilities

Total liabilities

Owners’ equity (or shareholders’ equity):

Surplus reserve

Undistributed profits

Total equity attributable to owners (or shareholders) of the Company

Non-controlling interests

Total owners’ equity (or shareholders’ equity)

Total liabilities and owners’ equity (or shareholders’ equity)

Before

adjustment for

the first three

quarters of

2022 (January

to September)

After

adjustment for

the first three

quarters of

2022 (January

to September)

V.  Net Profit (“-” to indicate loss)

(1)   Classification by business continuity

1.   Net profit from continuing operations

(2)   Classification by ownership

1.   Attributable to equity shareholders of the Company (“-” to indicate loss)

2.   Non-controlling interests (“-” to indicate loss)

VII.  Total comprehensive income

Attributable to equity owners of the Company

Attributable to non-controlling interests

VIII.  Earnings per share

(1)   Basic earnings per share (RMB)

(2)   Diluted earnings per share (RMB)

Sinopec Shanghai Petrochemical Company Limited

Liu Gang

MAJOR OPERATING DATA OF THE 2023 FIRST THREE QUARTERS

Product

Petroleum products

Diesel

Gasoline

Jet Fuel ^{note 1}

Intermediate petrochemicals

PX ^{note 2}

Benzene ^{note 1}

Ethylene Glycol ^{note 2}

Ethylene Oxide

Ethylene ^{note 2}

Resins and plastics

PE

PP

Polyester chips ^{note 1 note 2}

Synthetic fibres

Acrylics

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

Product

Diesel

Gasoline

Jet Fuel

Ethylene

PX

Benzene

Ethylene Glycol

Ethylene Oxide

PE

PP

Polyester chips

Acrylics

Raw material

Crude oil

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

MISCELLANEOUS