China Petroleum & Chemical Corporation
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsChina Petroleum & Chemical Corporation (Sinopec) is a Chinese petroleum refining and chemicals company whose American Depositary Shares program was terminated in December 2022 and which files annual reports on Form 20-F with the SEC.
What they do
Sinopec operates in petroleum refining and related chemicals businesses, with principal subsidiaries including Sinopec Beihai Refining and Chemical Limited Liability Company, ZhongKe (Guangdong) Refinery & Petrochemical Company Limited, Sinopec Qingdao Refining and Chemical Company Limited, and Sinopec Marketing Company Limited. The company is controlled by Sinopec Group Company, which holds 67.84% of its shares and is in turn controlled by the State-owned Assets Supervision and Administration Commission of the State Council of China.
Revenue drivers
- Petroleum refining and chemicals — Sinopec's business includes refining and petrochemical operations through subsidiaries such as Sinopec Beihai Refining and Chemical Limited Liability Company (98.98% owned) and ZhongKe (Guangdong) Refinery & Petrochemical Company Limited (90.30% owned), but the filing excerpt does not disclose revenue by segment or its relative size.
- Marketing and distribution — Sinopec Marketing Company Limited, 70.42% owned by the Company, is a principal subsidiary, indicating a marketing and distribution business, but the excerpt does not quantify its revenue contribution.
- Refined products via joint ventures — Sinopec-SK (Wuhan) Petrochemical Company Limited (59.00% owned) and Sinopec Shanghai Gaoqiao Petrochemical Co., Ltd. (55.00% owned) are principal subsidiaries involved in petrochemicals, but no revenue figures are provided in the excerpt.
Recent performance
The filing is an Amendment No. 1 to the annual report on Form 20-F for the fiscal year ended December 31, 2022, filed solely to amend and restate Item 16I in response to SEC staff comments. The amendment speaks as of the original filing date of April 28, 2023, and does not update financial statements or other items. The excerpt does not contain revenue, profit, or other financial results for the fiscal year 2022.
Strategy
The filing excerpt does not describe management's strategy or investment priorities. The amendment is limited to updating the disclosure regarding foreign jurisdictions that prevent inspections under the HFCAA.
Risks
- HFCAA delisting risk — Sinopec was conclusively listed as a Commission-Identified Issuer under the HFCAA in May 2022, but the PCAOB vacated its determination in December 2022, and Sinopec does not expect to be identified again after filing the annual report.
- Government control — Sinopec Group Company holds 67.84% of shares and is controlled by China's State-owned Assets Supervision and Administration Commission, giving the Chinese government a controlling financial interest in the company.
- ADS program termination — The American Depositary Shares program was terminated as of December 5, 2022, which may affect U.S. investors' ability to trade the company's securities in the form of ADSs.
- Limited financial disclosure in amendment — This Amendment No. 1 does not restate or update financial statements and reflects no events after April 28, 2023, so investors should read it with the original annual report and subsequent filings.
Outlook
The filing excerpt does not contain any forward-looking statements or management outlook. It states that Sinopec does not expect to be identified as a Commission-Identified Issuer under the HFCAA after filing the annual report on Form 20-F.