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SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2004
Commission File Number: 1-12158
Sinopec Shanghai Petrochemical Company Limited
(Translation of registrant’s name into English)
Jinshanwei, Shanghai
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- Not Applicable
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Sinopec Shanghai Petrochemical Company Limited, a joint stock limited company organized under the laws of the People’s Republic of China (the “Company”), hereby files the following document pursuant to rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934:
| Page | ||
| Press release regarding 2004 third quarterly results dated October 24, 2004 |
4 | |
| Announcement regarding 2004 third quarterly report dated October 22, 2004 |
7 | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED | ||||
| Date: October 25, 2004 | By: | /s/ Lu Yipin | ||
| Name: | Lu Yipin | |||
| Title: | Chairman | |||
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To: Business Editor
[For Immediate Release]
Shanghai Petrochemical Announces 2004 Third Quarterly Results
Net Profit Increases 186.87% to RMB2,614 Million
Hong Kong, 24 October 2004 … Sinopec Shanghai Petrochemical Company Limited (“Shanghai Petrochemical” or the “Company”) (HKEx: 338; SSE: 600688; NYSE: SHI) today announced its unaudited third quarterly results for the nine months ended 30 September 2004 (the “Period”) of the Company and its subsidiaries (the “Group”). During the Period, income from principal operations amounted to RMB28,127 million, an increase of 29.93% as compared to the same period of the previous year. Net profit amounted to RMB2,614 million, an increase of 186.87% as compared to the same period of the previous year.
Mr. Lu Yiping, Chairman of Shanghai Petrochemical, said, “During the first to third quarters of 2004, driven by the increasing crude oil prices and the growth of demand for petrochemical products in the PRC, the prices of the Group’s major products have increased significantly to various extents, which has offset the negative impact of the increased crude oil prices and has contributed greatly to the increase in operating results of the Group during the Period.”
During the Period, the Group’s sales of synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum products amounted to RMB3,664 million, RMB8,622 million, RMB3,908 million and RMB9,836 million, respectively. The consolidated average selling prices for the above products increased 19.52%, 30.60%, 36.19% and 17.68%, respectively.
During the Period, the Group processed 6.8091 million tons of crude oil, an increase of 7.89% as compared to the same period of the previous year (including 495,100 tons of subcontracted crude oil). With the effect of increasing crude oil prices, the Group’s unit cost of crude oil processed increased by 19.14% to RMB 2,197 per ton.
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Shanghai Petrochemical Announces 2004 Third Quarterly Results …p.2
Looking ahead, Mr. Lu is confident about the development of the Company, “We anticipate that given the high crude oil prices, a booming petrochemical cycle and stable growth of the global economy, the petrochemical industry is expected to continue its booming trend. The Group is committed to enhancing the competitiveness of the Group, striving for better operating results and better returns for shareholders.”
Shanghai Petrochemical is one of the largest petrochemical companies in the PRC and was one of the first Chinese companies to make a global securities offering. Located in Jinshan District in the southwest of Shanghai, it is a highly integrated petrochemical complex which processes crude oil into a broad range of products in synthetic fibres, resins and plastics, intermediate petrochemicals and petroleum categories.
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Encl.: Consolidated Income Statement (unaudited)
For further information, please contact:
Ms. Sally Wong / Ms. Jessica Chau
Rikes Communications Limited
Tel: (852) 2520 2201
Fax: (852) 2520 2241
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Shanghai Petrochemical Announces 2004 Third Quarterly Results …p.3
Sinopec Shanghai Petrochemical Company Limited
Consolidated Income Statement (unaudited)
(Prepared under PRC Accounting Rules and Regulations)
| For the nine months ended 30 September |
||||||
| 2004 | 2003 | |||||
| RMB’000 | RMB’000 | |||||
| Income from principal operations |
28,126,622 | 21,647,027 | ||||
| Less: Cost of sales |
(22,999,561 | ) | (18,704,305 | ) | ||
| Sales taxes and surcharges |
(548,305 | ) | (439,764 | ) | ||
| Profit from principal operations |
4,578,756 | 2,502,958 | ||||
| Add : Profit from other operations |
103,946 | 68,770 | ||||
| Less : Selling expenses |
(321,764 | ) | (337,573 | ) | ||
| Administrative expenses |
(795,410 | ) | (777,815 | ) | ||
| Financial expenses |
(248,839 | ) | (310,268 | ) | ||
| Profit from operations |
3,316,689 | 1,146,072 | ||||
| Add : Investment income |
9,477 | 12,785 | ||||
| Non-operating income |
28,502 | 12,001 | ||||
| Less : Non-operating expenses |
(217,243 | ) | (57,503 | ) | ||
| Total profit |
3,137,425 | 1,113,355 | ||||
| Less : Income tax |
(456,911 | ) | (173,434 | ) | ||
| Minority interests |
(66,767 | ) | (28,787 | ) | ||
| Net profit |
2,613,747 | 911,134 | ||||
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(a joint stock limited company incorporated in the People’s Republic of China)
(Stock code: 338)
2004 Third Quarterly Report
This announcement will be published simultaneously in Hong Kong and Shanghai on 25 October 2004. This quarterly report is prepared in accordance with the China Securities Regulatory Commission regulations on Disclosure of Information in Quarterly Reports for Listed Companies. All financial information set out in this quarterly report has been prepared in accordance with PRC Accounting Rules and Regulations. The financial statements in this quarterly report are unaudited. Shareholders of the Company and public investors should be aware of the risks of investment when trading in shares.
This announcement is made pursuant to the disclosure obligation under Paragraph 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The Board of Directors of Sinopec Shanghai Petrochemical Company Limited (the “Company”) hereby presents the third quarterly results of the Company and its subsidiaries (together, the “Group”) for the three months ended 30 September 2004.
§1 Important Message
| 1.1 | The Board of Directors of the Company and its directors jointly and severally accept full responsibility for the authenticity, accuracy and completeness of the information contained in this announcement and confirm that there are no material omissions or false or misleading statements in this announcement. |
| 1.2 | The financial statements contained in this third quarterly report have not been audited. |
| 1.3 | Mr. Lu Yiping, Chairman, Mr. Rong Guangdao, Vice Chairman and President of the Company, Mr. Han Zhihao, Director and Chief Financial Officer of the Company and Mr. Hua Xin, Finance Manager of the Company hereby warrant the authenticity and completeness of the financial statements contained in this quarterly report. |
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§2 Corporate Information
2.1 Corporate Information
| A Shares |
H Shares |
ADS | ||||||
| Stock abbreviation |
 |
|
SHI | |||||
| Stock Code |
600688 | 338 | ||||||
| Stock Exchange of Listing |
Shanghai Stock Exchange |
The Stock Exchange of Hong Kong Limited |
New York Stock Exchange | |||||
| Secretary to the Board of Directors |
Securities representative | |||||||
| Name |
Zhang Jingming | Tang Weizhong | ||||||
| Correspondence Address |
48 Jinyi Road, Jinshan District, Shanghai, People’s Republic of China |
48 Jinyi Road, Jinshan District, Shanghai, People’s Republic of China | ||||||
| Telephone |
86-21-5794 3143 | 86-21-5794 3143 | ||||||
| Fax |
86-21-5794 0050 | 86-21-5794 0050 | ||||||
| |
spc @spc.com.cn | tom @spc.com.cn | ||||||
2.2 Financial Information
2.2.1 Major financial data and financial indicators
Currency: RMB
| As at the end of the reporting period |
As at the end of the previous financial year |
Increase/ decrease (%) | ||||
| Total assets (‘000) |
28,249,032 | 27,580,828 | 2.42 | |||
| Shareholders’ equity (excluding minority interests) (‘000) |
17,544,763 | 15,507,016 | 13.14 | |||
| Net asset value per share (RMB) |
2.437 | 2.154 | 13.14 | |||
| Adjusted net asset value per share (RMB) |
2.431 | 2.149 | 13.12 | |||
| The reporting period (July to September) |
From the beginning of the financial year to the end of the reporting period (January to September) |
Increase/ decrease (%) | ||||
| Net cash flows from operating activities (‘000) |
1,230,213 | 2,898,314 | Net Cash flows from operating activities for the period have been changed from negative flows of the same period of the previous year to positive flows | |||
| Earnings per share (RMB) |
0.150 | 0.363 | 146.34 | |||
| Return on net assets (%) |
6.170 | 14.898 | increased by 3.25 percentage points | |||
| Return on net assets excluding non-recurring items (%) |
6.753 | 16.613 | increased by 3.64 percentage points | |||
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| Non-recurring Items |
Amount |
||
| Gain on disposal of investment |
15,008 | ||
| Non-operating income |
28,502 | ||
| Non-operating expenses |
(217,243 | ) | |
| Less: Provision for impairment losses on fixed assets |
34,345 | ||
| Written back of provision for impairment losses in previous years |
2,659 | ||
| Tax adjustments for the above items |
20,908 | ||
| Total |
(115,821 | ) |
2.2.2 Income Statement
Income Statement
| Unit: ‘000 | Currency: RMB Unaudited | ||||||||
| For the three months ended 30 September 2004 |
For the three months ended 30 September 2003 | ||||||||
| Item |
The Group |
The Company |
The Group |
The Company | |||||
| Income from principal operations |
10,348,485 | 9,103,997 | 7,507,957 | 7,058,611 | |||||
| Less: Cost of sales |
8,420,144 | 7,357,474 | 6,310,353 | 6,024,622 | |||||
| Sales taxes and surcharges |
198,052 | 196,838 | 165,252 | 156,956 | |||||
| Profit from principal operations |
1,730,289 | 1,549,685 | 1,032,352 | 877,033 | |||||
| Add: Profit from other operations |
27,955 | 7,781 | 26,312 | 22,117 | |||||
| Less: Selling expenses |
93,160 | 67,100 | 108,949 | 78,470 | |||||
| Administrative expenses |
258,105 | 189,465 | 301,620 | 256,248 | |||||
| Financial expenses |
77,344 | 65,139 | 100,927 | 91,502 | |||||
| Profit from operations |
1,329,635 | 1,235,762 | 547,168 | 472,930 | |||||
| Add: Investment (losses)/income |
(6,176 | ) | 46,092 | 13,963 | 62,539 | ||||
| Non-operating income |
13,410 | 6,987 | 2,737 | 446 | |||||
| Less: Non-operating expenses |
29,783 | 27,349 | 35,080 | 31,312 | |||||
| Total profit |
1,307,086 | 1,261,492 | 528,788 | 504,603 | |||||
| Less: Income tax |
198,691 | 178,945 | 73,922 | 65,149 | |||||
| Minority interests |
25,848 | 0 | 15,412 | 0 | |||||
| Net profit |
1,082,547 | 1,082,547 | 439,454 | 439,454 | |||||
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Income Statement
Unit: ‘000 Currency: RMB Unaudited
| For the nine months ended 30 September 2004 |
For the nine months ended 30 September 2003 | |||||||
| Item |
The Group |
The Company |
The Group |
The Company | ||||
| Income from principal operations |
28,126,622 | 24,809,912 | 21,647,027 | 20,392,257 | ||||
| Less: Cost of sales |
22,999,561 | 20,195,713 | 18,704,305 | 17,837,578 | ||||
| Sales taxes and surcharges |
548,305 | 541,745 | 439,764 | 418,281 | ||||
| Profit from principal operations |
4,578,756 | 4,072,454 | 2,502,958 | 2,136,398 | ||||
| Add: Profit from other operations |
103,946 | 41,102 | 68,770 | 59,688 | ||||
| Less: Selling expenses |
321,764 | 240,572 | 337,573 | 244,530 | ||||
| Administrative expenses |
795,410 | 622,310 | 777,815 | 648,399 | ||||
| Financial expenses |
248,839 | 209,357 | 310,268 | 287,476 | ||||
| Profit from operations |
3,316,689 | 3,041,317 | 1,146,072 | 1,015,681 | ||||
| Add: Investment income |
9,477 | 183,755 | 12,785 | 95,659 | ||||
| Non-operating income |
28,502 | 10,686 | 12,001 | 829 | ||||
| Less: Non-operating expenses |
217,243 | 212,097 | 57,503 | 52,475 | ||||
| Total profit |
3,137,425 | 3,023,661 | 1,113,355 | 1,059,694 | ||||
| Less: Income tax |
456,911 | 409,914 | 173,434 | 148,560 | ||||
| Minority interests |
66,767 | 0 | 28,787 | 0 | ||||
| Net profit |
2,613,747 | 2,613,747 | 911,134 | 911,134 | ||||
| Add: Undistributed profits at beginning of the period |
2,048,896 | 2,048,896 | 1,300,452 | 1,300,452 | ||||
| Distributable profits |
4,662,643 | 4,662,643 | 2,211,586 | 2,211,586 | ||||
| Less: Transfer to statutory surplus reserve |
0 | 0 | 0 | 0 | ||||
| Transfer to statutory public welfare fund |
0 | 0 | 0 | 0 | ||||
| Distributable profits to shareholders |
4,662,643 | 4,662,643 | 2,211,586 | 2,211,586 | ||||
| Less: Ordinary shares’ final dividend |
576,000 | 576,000 | 360,000 | 360,000 | ||||
| Undistributed profits at the end of the period |
4,086,643 | 4,086,643 | 1,851,586 | 1,851,586 | ||||
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2.3 Top Ten Shareholders with Shares in Circulation
Unit: Share
Total number of shareholders as at the end of the reporting period: 150,840
Top Ten Shareholders with Shares in Circulation
| Name of shareholder (full name) |
Number of shares in circulation as at the end of the reporting period |
Type (A, B or H shares) | ||
| HKSCC Nominees Ltd. |
1,915,338,857 | H | ||
| Hongkong & Shanghai Banking Corporation (Nominees) Limited |
355,708,000 | H | ||
| Xinghe Securities Investment Fund |
27,158,673 | A | ||
| Bank of China- Haifutong Income Growth Securities Investment Fund |
21,996,450 | A | ||
| Xinghua Securities Investment Fund |
21,630,000 | A | ||
| Jingfu Securities Investment Fund |
19,702,449 | A | ||
| Bank of Communications-Yifangda 50 Index Securities Investment Fund |
16,386,947 | A | ||
| China Merchants Bank Co., Ltd. - Zhong Xin Jing Dian Pei Zhi Securities Investment Fund |
15,560,885 | A | ||
| Agricultural Bank of China - Zhang Cheng Active and Selective Securities Investment Fund |
15,496,691 | A | ||
| Hua Xia Cheng Zhang Securities Investment Fund |
11,000,000 | A |
§3 Management Discussion and Analysis
3.1 Overview and brief analysis of the Group’s operations during the reporting period
In the past 9 months, recovery of the global economy significantly increased the demand for crude oil. During the same period, oil reserve in the major oil producing countries has been on the decline which resulted in a greater demand for crude oil and upsurge of prices. Unstable political situations and speculative investment activities have together added pressure to international oil prices, which has directly increased the refining costs of the Group. However, driven by the increasing crude oil prices and the growth of demand for petrochemical products in the PRC, the prices of the Group’s major products have increased significantly to various extents, which has more than offset the negative impact of the increased crude oil prices and has contributed greatly to the increase in operating results of the Group during the reporting period.
From 1 January 2004 to 30 September 2004, income from principal operations of the Group amounted to RMB 28.127 billion, an increase of 29.93% when compared to the same period of the previous year. Among such income increase, sales of synthetic fibres, resins and plastics, intermediate petrochemical products and petroleum products amounted to RMB 3.664 billion, RMB 8.622 billion, RMB 3.908 billion and RMB 9.836 billion, respectively. Net profit amounted to RMB 2.614 billion, an increase of 186.87% when compared to the same period of the previous year.
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During the same period, the Group processed a total of 6.8091 million tons of crude oil, an increase of 7.89% as compared to the same period of the previous year (including 495,100 tons of subcontracted crude oil). The Group’s unit cost of crude oil processed amounted to RMB 2,197 per ton, an increase of 19.14% as compared to the same period of the previous year. The consolidated average selling price of synthetic fibres, resins and plastics, intermediate petrochemical products and petroleum products of the Group increased by 19.52%, 30.60%, 36.19% and 17.68%, respectively.
3.1.1 Principal operations and products accounting for 10% or more of income from principal operations or profit from principal operations
Unit: ‘000 Currency: RMB Unaudited
| Segment |
Income from principal operations |
Cost of sales |
Gross profit margin (%) | |||
| Synthetic fibres |
3,663,792 | 3,132,802 | 14.49 | |||
| Resins and plastics |
8,621,531 | 6,413,600 | 25.61 | |||
| Intermediate petrochemical products |
3,908,412 | 2,584,376 | 33.88 | |||
| Petroleum products |
9,835,949 | 8,942,415 | 9.08 | |||
| Others |
2,096,938 | 1,926,368 | 8.13 | |||
| Including: related party transactions |
10,915,920 | 9,819,463 | 10.04 |
3.2 Profit Indication & Discussion
In view of the present business development situation of the Group, it is expected that the operating results of 2004 will improve substantially as compared to the same period of the previous year.
Sinopec Shanghai Petrochemical Company Limited
Lu Yiping
Chairman
Shanghai, 22 October, 2004
As of the date of this announcement, the executive directors of the Company are Lu Yiping, Rong Guangdao, Du Chongjun, Han Zhihao, Wu Haijun and Gao Jinping; the non-executive directors of the Company are Liu Wenlong and Zhang Baojian, and the independent non-executive directors of the Company are Gu Chuanxun, Wang Xingyu, Wang Yongshou, and Chen Xinyuan.