Edgar Filing: SINOPEC SHANGHAI PETROCHEMICAL CO LTD

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Form 6-K

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 2013

Commission File Number: 1-12158

Sinopec Shanghai Petrochemical Company Limited

(Translation of registrant’s name into English)

Jinshanwei, Shanghai

The 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

SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED

Form 6-K

TABLE OF CONTENTS


	Page

Signature Page		3

2013 Third Quarterly Report		4

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.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

LOGO

(A joint stock limited company incorporated in the People’s Republic of China)

(Stock Code: 00338)

2013 Third Quarterly Report

This announcement is published simultaneously in Shanghai and Hong Kong. This announcement is published pursuant to the Rules Governing Listing of Stocks on Shanghai Stock Exchange in the People’s Republic of China and pursuant to the disclosure obligations under Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

1.	Important Message

1.1 The board of directors and the supervisory committee as well as its directors, supervisors and senior management warrant that the information contained in this quarterly report is truthful, accurate and complete, and jointly accept full responsibility for any false representations or misleading statements contained in, or material omissions from, this announcement.

1.2 All directors attended the 17th meeting of the seventh session of the Board of Directors for the 2013 third quarterly report, as well as adopted the third quarterly report.

1.3 The financial report of the Company in the 2013 third quarterly report for the nine-month period ended 30 September 2013 (the “Reporting Period”) was prepared under the China Accounting Standards for Business Enterprises and was unaudited.

1.4 Mr. Wang Zhiqing, Chairman and President of the Company, Mr. Ye Guohua, director and Chief Financial Officer overseeing the accounting operations, and Mr. Hua Xin, Deputy Chief Financial Officer, person-in-charge of Accounting Department (Accounting Chief) and Finance Manager warrant the truthfulness, accuracy and completeness of the financial report contained in the quarterly report.

2.	Key Financial Data & Change of Shareholders

2.1	Major Accounting Data

Currency: RMB


	As at the end of the Reporting Period		As at the end of the previous year		Increase/decrease at the end of the Reporting Period as compared to the end of the previous year (%)
Total assets (RMB’000)		35,403,180		36,805,799		-3.81
Total equity attributable to equity shareholders of the Company (RMB’000)		17,202,566		16,190,419		6.25

	From the beginning of the year to the end of the Reporting Period (January to September 2013)		From the beginning of the year to the end of the Reporting Period last year (January to September 2012)		Increase/decrease as compared to the corresponding period of the previous year (%)
Net cash inflow from operating activities (RMB’000)		4,886,124		1,019,580		379.23

	From the beginning of the year to the end of the Reporting Period (January to September 2013)		From the beginning of the year to the end of the Reporting Period last year (January to September 2012)		Increase/decrease as compared to the corresponding period of the previous year (%)
Revenue (RMB’000)		86,356,446		69,152,724		24.88
Net profit attributable to equity shareholders of the Company (“–” for loss/ RMB’000)		1,004,210		-1,609,377		Not Applicable
Net profit attributable to equity shareholders of the Company excluding non-recurring items (“–” for loss/ RMB’000)		1,034,388		-1,711,384		Not Applicable
Return on net assets (weighted average) (%)		6.014		-9.386		Increased by 15.400 percentage points
Basic earnings per share (“-” to indicate loss, RMB/share)		0.139		-0.224		Not Applicable
Diluted earnings per share (“-” to indicate loss, RMB/share)		0.139		-0.224		Not Applicable

Excluding non-recurring items and amount:

Unit: RMB’000


Item	Amount for the Reporting Period (July to September 2013)		Amount for the period from the beginning of the year to the end of the Reporting Period (January to September 2013)
Net loss from disposal of non-current assets		-1,658		-21,166
Employee reduction expenses		-279		-2,435
Government grants recorded in profit and loss (except for government grants under the State’s unified standards on quota and amount entitlements and closely related to corporate business)		13,143		19,437
Income from external entrusted loans		508		1,553
Other non-operating income and expenses other than those mentioned above		-17,521		-36,624
Income tax effect		1,452		9,809
Effect attributable to minority interests (after tax)		-165		-752
Total		-4,520		-30,178

2.2 Total Number of Shareholders as at the End of the Reporting Period, Top Ten Shareholders and Shareholding of the Top Ten Shareholders of Shares in Circulation


									Unit: Share

Total number of shareholders as at the end of the Reporting Period										129,906

Shareholding of the top ten shareholders

Name of shareholders	Type of shareholder		Percentage of total shareholding (%)		Number of shares held		Number of shares with selling restrictions		Number of shares pledged or frozen
China Petroleum & Chemical Corporation		State-owned Shareholder		50.56		3,640,000,000		3,640,000,000		Nil
HKSCC (Nominees) Ltd.		Foreign Shareholder		31.84		2,292,291,101		0		Unknown
Shanghai Kangli Gong Mao Company		Others		0.23		16,760,000		16,730,000		Unknown
Zhejiang Province Economic Construction and Investment Company		Others		0.17		12,000,000		12,000,000		Unknown
AHCOF Xingye Co., Ltd		Others		0.08		5,671,661		0		Unknown
Shanghai Textile Development Company		Others		0.08		5,650,000		5,650,000		Unknown
Shanghai Xiangshun Shiye Company Limited		Others		0.08		5,500,000		5,500,000		Unknown
Gu Jufang		Others		0.08		5,478,815		0		Unknown
IP KOW		Others		0.08		5,432,000		0		Unknown
ChangJiangWan Holdings Ltd.		Others		0.06		4,575,128		0		Unknown


Shareholding of the top ten shareholders of selling unrestricted shares in circulation

Name of shareholders (in full)	Number of circulating shares without selling restrictions held as at the end of the Reporting Period	Type of shares
HKSCC (Nominees) Limited	2,292,291,101	Overseas listed foreign shares
AHCOF Xingye Co., Ltd.	5,671,661	RMB-denominated ordinary shares
Gu Jufang	5,478,815	RMB-denominated ordinary shares
IP KOW	5,432,000	Overseas listed foreign shares
ChangJiangWan Holdings Ltd.	4,575,128	RMB-denominated ordinary shares
GuoTai Jun’An Securities Co., Ltd	4,302,300	RMB-denominated ordinary shares
Shanghai Lingqi Trading Co., Ltd	3,377,261	RMB-denominated ordinary shares
Zhao Yingmin	3,376,539	RMB-denominated ordinary shares
Jiang Guoliang	3,316,261	RMB-denominated ordinary shares
Li Haiying	3,194,950	RMB-denominated ordinary shares
Explanation of the connected relationship or acting in concert relationship of the above shareholders	Among the above-mentioned shareholders, China Petroleum & Chemical Corporation (“Sinopec Corp.”), a state-owned enterprise legal person, does not have any connected relationship with the other shareholders, and is not an act-in-concert party of the other shareholders under the “Administration Measures on Acquisition of Listed Companies”. Among the above-mentioned shareholders, HKSCC (Nominees) Limited is a nominee shareholder. Apart from the above, the Company is not aware of any other connected relationships among the other shareholders, or any act-in-concert parties under the “Administration Measures on the Acquisition of Listed Companies”.

3.	Major Events

3.1 Description of Substantial Changes in Financial Report Items and Financial Indicators of the Company


									Unit: RMB’000

Item	As at 30 September 2013		As at 31 December 2012		Increase/ decrease amount		Change (%)		Reason for change
Cash at bank and on hand		321,035		160,962		160,073		99.45	The Company recorded profit in the Reporting Period, led to increase of cash flow generated from operating activities; refinery renovation project completed and commenced production in the end of 2012, led to a decrease in capital expenditures
Notes receivable		2,884,066		2,065,483		818,583		39.63	Sales for the period increased, an increase in operating receivables
Accounts receivable		1,459,890		1,082,742		377,148		34.83
Advances to suppliers		178,371		90,261		88,110		97.62	Refinery renovation project commenced production in the end of 2012, led to an increase in raw and auxiliary materials procurement
Other receivables		55,283		40,765		14,518		35.61	Increase in receivables with related parties
Other current assets		155,090		513,134		-358,044		-69.78	Sales expanded, output tax increased, deductible VAT reduced
Deferred tax assets		719,186		1,052,573		-333,387		-31.67	The Company recorded profit in the Reporting Period, lead to decrease in unrealised deductible losses
Short – term borrowings		6,964,583		11,023,877		-4,059,294		-36.82	Cash flow generated from operating activities increased, supplement working capital, borrowings were reduced
Taxes payable		1,006,733		671,231		335,502		49.98	Refinery renovation project commenced production in the end of 2012, sales volume of gasoline and diesel thus increased leading to increase in consumption tax
Current portion of non-current liabilities		614,800		—		614,800		Not Applicable	Report the long-term borrowings due within one year separately
Long-term borrowings		627,800		1,231,340		-603,540		-49.01
Specific reserve		16,116		8,179		7,937		97.04	Accrued safety production fee which is unused


									Unit: RMB’000

Item	For the nine-month period ended 30 September 2013				Increase/ decrease amount		Change (%)		Reason for change
Item	2013		2012		Increase/ decrease amount		Change (%)		Reason for change
Taxes and surcharges		7,493,290		4,228,871		3,264,419		77.19	Due to increase in consumption tax resulting from the increase in sales of gasoline and diesel after the Refinery Renovation Project commenced production in the end of 2012
Financial (income)/ expenses - net		-149,451		294,495		-443,946		-150.75	Foreign exchange gain due to depreciation of the US Dollar
Asset impairment losses		23,879		190,711		-166,832		-87.48	Decrease in provisions made for inventory
Investment income		62,005		30,122		31,883		105.85	Increase in profits of associates and jointly controlled entities
Non-operating Income		22,690		169,548		-146,858		-86.62	Refunds received relating to local education surcharge significantly decreased during the Period
Non-operating expenses		61,043		35,835		25,208		70.34	Increased loss on disposal of non-current assets
Income tax expenses		343,309		-517,030		860,339		Not Applicable	Earnings for the first three quarters of the year
Attributable to equity shareholders of the Company (“–” for loss)		1,004,210		-1,609,377		2,613,587		Not Applicable	Earnings for the first three quarters of the year

3.2 Significant events and their impacts and solutions

According to the requirements set out by the relevant laws and regulations where the Company’s shares are listed as well as the Company’s actual condition, the resolutions related to the Company’s A Share Reform Proposal were reviewed and approved at the 14^th meeting of the seventh session of the Board of Directors held on 7 June 2013, and the Company was entrusted by the non-circulating shareholders to implement the A Share Reform Proposal. The “Sinopec Shanghai Petrochemical Company Limited Share Reform Plan” was approved at the relevant shareholders meeting of the A Shareholders held on 8 July 2013. During the Reporting Period, the pricing arrangement of the Company’s Share Reform Proposal was implemented.

There were no other important events during the Reporting Period.

3.3 Commitments for the Company and shareholders holding more than 5% of shares

The Company’s controlling shareholder Sinopec Corp. has given the following undertakings in connection with the A-Share Reform:

Sinopec Corp. shall not, within 12 months from the date on which its non-circulating shares of the Company acquiring the right to circulate in the market (meaning the first trading day after the implementation of the A-share reform proposal), deal in or transfer such shares through the stock exchanges. Also, after the expiration of the aforesaid undertaking, the amount of existing non-circulating shares to be disposed by Sinopec Corp. through trading on the stock exchange shall not represent more than 5% of the total amount of shares held by Sinopec Corp. within the next 12 months, and not more than 10% within the next 24 months.

Sinopec Corp. shall, within 6 months from the date on which its non-circulating shares of Company acquiring the right to circulate in the market (meaning the first trading day after the implementation of the A-share reform proposal), convene a Board meeting of the Company in accordance with the Articles of Association of Sinopec Shanghai Petrochemical Company Limited to review and consider a proposal for capitalising the capital fund into such number of shares that is needed to distribute four or more additional shares for every ten shares, and to correspondingly convene the relevant shareholders’ meeting. Sinopec Corp. has also undertaken to vote in favour of such capitalisation proposal at the Company’s shareholders’ meeting. (“Capitalisation undertaking”)

Sinopec Corp. shall, within 12 months from the date on which its non-circulating shares of Company acquiring the right to circulate in the market (meaning the first trading day after the implementation of the A-share reform proposal), submit a stock option incentive scheme to the Board that complies with the relevant rules of the State-owned Assets Supervision and Administration Commission of the State Council and the China Securities Regulatory Commission, under which the initial exercise price for the stock options under the scheme shall not be lower than the closing price of the Company’s shares on 30 May 2013 (being RMB6.43 per share) (in case of ex-rights or ex-dividends prior to the announcement of the draft of the stock option incentive scheme, the exercise price of the options shall be adjusted accordingly).

Sinopec Corp. shall continue to support the subsequent development of the Company upon the completion of the A-share reform scheme, and shall consider the Company as a platform for the development of related businesses in future.

For more details, please refer to the full version of The Explanatory Memorandum for the A-share Reform Proposal of the Company (the Revised Draft) published on the websites of Shanghai Stock Exchange, Stock Exchange of Hong Kong and the Company, as well as posted on Shanghai Securities News and China Securities Journal on 20 June 2013.

The “Sinopec Shanghai Petrochemical Company Limited Share Reform Plan” was approved at the shareholders meeting of the holders of A shares of the Share Reform Plan of the Company held on 8 July 2013. The pricing arrangement of the A-share reform scheme was implemented in August 2013, all the non-circulating Shareholders with shares registered on 16 August 2013 received five shares for every ten circulating shares held, totally amounted 360,000,000 non-circulating A shares from controlling shareholder Sinopec Corp. Since 20 August 2013, all the Company’s non-circulating A shares have been granted listable circulating rights on Shanghai Stock Exchange.

On 28 August 2013, in fulfilling the abovementioned undertaking, Sinopec Corp. had proposed the “Proposal by and Undertaking of Sinopec Corp. on the optimised A-share reform proposal, distribution of 2013 interim cash dividend, and capitalisation of capital fund and surplus reserve fund” (“Optimised Reform Proposal”). For more details, please refer to the “Optimised A-share Reform Proposal” announcement issued by the Company on 28 August 2013. The Optimised Reform Proposal was reviewed and approved at the First A Shareholders Class Meeting held on 22 October 2013.

3.4 Predict the cumulative net loss from the beginning of this year to the next reporting period, or the occurrence of significant changes and the reasons as compared with last year

Since the refinery renovation project commenced operation, the Company’s existing processing capacity and adaptability were largely enhanced. It also optimised raw materials and product, improved the profitability of refinery operations. Despite the petrochemical market is not showing a clear uptrend, the overall prices stabilised. The Group expects to record profit of operating results as of year ended 31 December 2013 as compared with a loss in the same period of previous year.

§4	APPENDIX

4.1

CONSOLIDATED BALANCE SHEETS

AS AT 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


Items	30 September 2013		31 December 2012
Current assets
Cash at bank and on hand		321,035		160,962
Notes receivable		2,884,066		2,065,483
Accounts receivable		1,459,890		1,082,742
Advances to suppliers		178,371		90,261
Other receivables		55,283		40,765
Inventories		7,888,347		8,938,077
Other current assets		155,090		513,134

Total current assets		12,942,082		12,891,424

Non-current assets
Long-term equity investment		3,054,990		3,057,153
Investment properties		429,203		439,137
Fixed assets		16,565,555		17,622,001
Construction in progress		634,898		612,388
Intangible assets		483,749		497,575
Long-term prepaid expenses		573,517		633,548
Deferred tax assets		719,186		1,052,573

Total non-current assets		22,461,098		23,914,375

TOTAL ASSETS		35,403,180		36,805,799

CONSOLIDATED BALANCE SHEETS (CONTINUED)

AS AT 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


Items	30 September 2013		31 December 2012
Current liabilities
Short-term borrowings		6,964,583		11,023,877
Notes payable		7,235		—
Accounts payable		6,586,359		5,523,248
Advance from customers		980,737		758,796
Employee benefits payable		44,076		48,008
Taxes payable		1,006,733		671,231
Interest payable		7,357		20,987
Dividends payable		21,450		21,548
Other payables		899,031		859,562
Current portion of non-current liabilities		614,800		—

Total current liabilities		17,132,361		18,927,257

Non-current liabilities
Long-term borrowings		627,800		1,231,340
Other non-current liabilities		182,500		190,000

Total non-current liabilities		810,300		1,421,340

TOTAL LIABILITIES		17,942,661		20,348,597

Shareholders’ equity
Share capital		7,200,000		7,200,000
Capital surplus		2,914,763		2,914,763
Specific reserve		16,116		8,179
Surplus reserve		5,151,770		5,151,770
Undistributed profits		1,919,917		915,707
Total equity attributable to equity shareholders of the Company		17,202,566		16,190,419
Minority interests		257,953		266,783
TOTAL SHAREHOLDERS’ EQUITY		17,460,519		16,457,202

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		35,403,180		36,805,799

COMPANY BALANCE SHEETS

AS AT 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


Items	30 September 2013		31 December 2012
Current assets
Cash at bank and on hand		260,167		119,148
Notes receivable		2,390,030		1,914,007
Accounts receivable		1,056,780		811,738
Advances to suppliers		169,064		82,426
Other receivables		32,402		15,569
Inventories		7,553,879		8,615,644
Other current assets		58,311		419,523

Total current assets		11,520,633		11,978,055

Non-current assets
Long-term equity investment		4,101,403		4,069,891
Investment properties		429,203		439,137
Fixed assets		16,119,111		17,105,599
Construction in progress		634,898		604,866
Intangible assets		396,500		406,356
Long-term prepaid expenses		557,471		617,025
Deferred tax assets		718,951		1,052,338

Total non-current assets		22,957,537		24,295,212

TOTAL ASSETS		34,478,170		36,273,267

COMPANY BALANCE SHEETS (CONTINUED)

AS AT 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


Items	30 September 2013		31 December 2012
Current liabilities
Short-term borrowings		7,008,583		11,092,877
Notes payable		—		—
Accounts payable		5,817,821		5,175,493
Advance from customers		924,674		675,446
Employee benefits payable		38,639		42,959
Taxes payable		997,525		663,603
Interest payable		7,250		20,987
Dividends payable		21,450		21,548
Other payables		1,288,665		1,246,286
Current portion of non-current liabilities		614,800		—

Total current liabilities		16,719,407		18,939,199

Non-current liabilities
Long-term borrowings		600,000		1,200,000
Other non-current liabilities		182,500		190,000

Total non-current liabilities		782,500		1,390,000

TOTAL LIABILITIES		17,501,907		20,329,199

Shareholders’ equity
Share capital		7,200,000		7,200,000
Capital surplus		2,914,763		2,914,763
Specific reserve		6,568		—
Surplus reserve		5,151,770		5,151,770
Undistributed profits		1,703,162		677,535

TOTAL SHAREHOLDERS’ EQUITY		16,976,263		15,944,068

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		34,478,170		36,273,267

4.2

CONSOLIDATED INCOME STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


	Nine months ended 30 September
Items	2013		2012
Revenue		86,356,446		69,152,724
Less: Cost of sales		75,174,216		64,367,403
Taxes and surcharges		7,493,290		4,228,871
Selling and distribution expenses		496,969		506,355
General and administrative expenses		1,984,612		1,832,477
Financial (income)/expenses - net		-149,451		294,495
Asset impairment losses		23,879		190,711
Add: Investment income		62,005		30,122
Including: Share of profits of associates and jointly controlled entities		62,005		23,676
Operating profit/(loss)		1,394,936		-2,237,466
Add: Non-operating income		22,690		169,548
Less: Non-operating expenses		61,043		35,835
Including: Losses on disposal of non-current assets		22,632		16,985
Total profit/(loss)		1,356,583		-2,103,753
Less: Income tax expenses		343,309		-517,030
Net profit/(loss)		1,013,274		-1,586,723
Attributable to equity shareholders of the Company		1,004,210		-1,609,377
Minority interests		9,064		22,654
Earnings/(Loss) per share
Basic and Diluted earnings/(loss) per share(RMB)		0.139		-0.224
Other comprehensive income		—		—
Total comprehensive income/(loss)		1,013,274		-1,586,723
Attributable to equity shareholders of the Company		1,004,210		-1,609,377
Minority interests		9,064		22,654

COMPANY INCOME STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


	Nine months ended 30 September
Items	2013		2012
Revenue		76,063,282		58,993,438
Less: Cost of sales		65,044,434		54,428,981
Taxes and surcharges		7,488,926		4,223,451
Selling and distribution expenses		393,256		438,313
General and administrative expenses		1,871,272		1,732,815
Financial (income)/expenses - net		-117,212		274,520
Asset impairment losses		38,726		207,080
Add: Investment income		54,896		105,565
Including: Share of profits of associates and jointly controlled entities		46,817		7,485
Operating profit/(loss)		1,398,776		-2,206,157
Add: Non-operating income		21,124		167,189
Less: Non-operating expenses		60,886		35,297
Including: Losses on disposal of non-current assets		22,624		16,449
Total profit/(loss)		1,359,014		-2,074,265
Less: Income tax expenses		333,387		-537,741
Net profit/(loss)		1,025,627		-1,536,524
Other comprehensive income		—		—
Total comprehensive income/(loss)		1,025,627		-1,536,524

CONSOLIDATED INCOME STATEMENTS

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


	Three months ended 30 September
Items	2013		2012
Revenue		29,245,524		22,680,130
Less: Cost of sales		25,154,744		20,919,307
Taxes and surcharges		2,569,555		1,391,585
Selling and distribution expenses		162,167		176,548
General and administrative expenses		659,371		653,890
Financial expenses - net		278		101,408
Asset impairment (income)/losses		-40		5,132
Add: Investment income		53,848		25,404
Including: Share of profits of associates and jointly controlled entities		53,848		25,404
Operating profit/(loss)		753,297		-542,336
Add: Non-operating income		14,747		8,285
Less: Non-operating expenses		20,783		11,050
Including: Losses on disposal of non-current assets		2,318		4,628
Total profit/(loss)		747,261		-545,101
Less: Income tax expenses		176,294		-139,500
Net profit/(loss)		570,967		-405,601
Attributable to equity shareholders of the Company		566,190		-414,888
Minority interests		4,777		9,287
Earnings/(Loss) per share
Basic and Diluted earnings/(loss) per share(RMB)		0.079		-0.058
Other comprehensive income		—		—
Total comprehensive income/(loss)		570,967		-405,601
Attributable to equity shareholders of the Company		566,190		-414,888
Minority interests		4,777		9,287

COMPANY INCOME STATEMENTS

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


	Three months ended 30 September
Items	2013		2012
Revenue		25,694,155		18,986,652
Less: Cost of sales		21,658,812		17,307,239
Taxes and surcharges		2,567,440		1,389,159
Selling and distribution expenses		132,780		153,130
General and administrative expenses		625,817		623,060
Financial expenses - net		8,576		97,040
Asset impairment (income)/losses		-40		5,132
Add: Investment income		49,455		22,379
Including: Share of profits of associates and jointly controlled entities		49,455		22,379
Operating profit/(loss)		750,225		-565,729
Add: Non-operating income		14,687		6,772
Less: Non-operating expenses		20,774		10,512
Including: Losses on disposal of non-current assets		2,318		4,092
Total profit/(loss)		744,138		-569,469
Less: Income tax expenses		173,813		-147,786
Net profit/(loss)		570,325		-421,683
Other comprehensive income		—		—
Total comprehensive income/(loss)		570,325		-421,683

4.3

CONSOLIDATED CASH FLOW STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


	Nine months ended 30 September
Items	2013		2012
Cash flows from operating activities
Cash received from sales of goods or rendering of services		98,939,697		82,064,595
Refund of taxes and surcharges		37,213		56,923
Cash received relating to other operating activities		15,037		48,633
Sub-total of cash inflows		98,991,947		82,170,151
Cash paid for goods and services		-82,488,573		-74,241,087
Cash paid to and on behalf of employees		-1,788,031		-1,845,659
Payments of taxes and surcharges		-9,433,370		-4,714,507
Cash paid relating to other operating activities		-395,849		-349,318
Sub-total of cash outflows		-94,105,823		-81,150,571

Net cash flows from operating activities		4,886,124		1,019,580

Cash flows from investing activities
Cash received from disposal of investments		42,000		58,000
Cash received from returns on investments		48,864		65,679
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		2,645		7,259
Net cash received from disposal of a subsidiary		—		3,743
Cash received relating to other investing activities		62,223		66,631
Sub-total of cash inflows		155,732		201,312
Cash paid to acquire fixed assets and other long-term assets		-833,351		-3,308,363
Cash paid to acquire investments		-42,000		-42,000
Cash paid relating to other investing activities		—		—
Sub-total of cash outflows		-875,351		-3,350,363

Net cash flows used in investing activities		-719,619		-3,149,051

CONSOLIDATED CASH FLOW STATEMENTS (CONTINUED)

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


	Nine months ended 30 September
Items	2013		2012
Cash flows from financing activities
Cash received from borrowings		43,263,680		37,957,584
Sub-total of cash inflows		43,263,680		37,957,584
Cash repayments of enterprise debt		-46,978,671		-34,921,758
Cash paid for interest expenses and distribution of dividends or profits		-294,576		-729,403
Cash payments relating to other financing activities		—		—
Sub-total of cash outflows		-47,273,247		-35,651,161

Net cash flows (used in)/from financing activities		-4,009,567		2,306,423

Effect of foreign exchange rate changes on cash and cash equivalents		3,135		15

Net increase in cash and cash equivalents		160,073		176,967
Add: Cash and cash equivalents at beginning of year		160,962		91,346

Cash and cash equivalents at end of the period		321,035		268,313

COMPANY CASH FLOW STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


	Nine months ended 30 September
Items	2013		2012
Cash flows from operating activities
Cash received from sales of goods or rendering of services		87,968,962		69,992,713
Refund of taxes and surcharges		468		—
Cash received relating to other operating activities		69,421		47,462
Sub-total of cash inflows		88,038,851		70,040,175
Cash paid for goods and services		-71,668,589		-62,437,909
Cash paid to and on behalf of employees		-1,670,556		-1,731,912
Payments of taxes and surcharges		-9,368,520		-4,634,065
Cash paid relating to other operating activities		-432,195		-327,521
Sub-total of cash outflows		-83,139,860		-69,131,407

Net cash flows from operating activities		4,898,991		908,768

Cash flows from investing activities
Cash received from disposal of investments		—		—
Cash received from returns on investments		23,383		137,501
Net cash received from disposal of fixed assets, intangible assets and other long-term assets		1,262		5,753
Cash received relating to other investing activities		57,644		59,578
Sub-total of cash inflows		82,289		202,832
Cash paid to acquire fixed assets and other long-term assets		-829,798		-3,307,988
Cash paid to acquire investments		—		—
Sub-total of cash outflows		-829,798		-3,307,988

Net cash flows used in investing activities		-747,509		-3,105,156

COMPANY CASH FLOW STATEMENTS (CONTINUED)

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2013 (UNAUDITED)

Expressed in thousands of Renminbi Yuan


	Nine months ended 30 September
Items	2013		2012
Cash flows from financing activities
Cash received from borrowings		43,252,670		37,972,244
Sub-total of cash inflows		43,252,670		37,972,244
Cash repayments of enterprise debt		-46,988,551		-34,935,119
Cash paid for interest expenses and distribution of dividends or profits		-274,572		-686,403
Sub-total of cash outflows		-47,263,123		-35,621,522

Net cash flows (used in)/from financing activities		-4,010,453		2,350,722

Effect of foreign exchange rate changes on cash and cash equivalents		-10		9

Net increase in cash and cash equivalents		141,019		154,343
Add: Cash and cash equivalents at beginning of year		119,148		61,057

Cash and cash equivalents at end of the period		260,167		215,400

Sinopec Shanghai Petrochemical Company Limited

By Order of the Board

Wang Zhiqing

Chairman and President

Shanghai, the PRC, 28 October 2013

As at the date of this announcement, the Executive Directors of the Company are Wang Zhiqing, Wu Haijun, Gao Jinping, Li Honggen, Zhang Jianping and Ye Guohua; the Non-executive Directors of the Company are Lei Dianwu and Xiang Hanyin; and the Independent Non-executive Directors of the Company are Shen Liqiang, Jin Mingda, Cai Tingji and Zhang Yimin.

SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED

Date: October 29, 2013

/s/ Wang Zhiqing

Wang Zhiqing