Exhibit 99.1

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.

 

PETROCHINA COMPANY LIMITED

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

(Hong Kong Stock Exchange Stock Code: 857; Shanghai Stock Exchange Stock Code: 601857)

ANNOUNCEMENT

Third Quarterly Report of 2021

 

1.	Important Notice

 

1.1.

The Board of Directors, the Supervisory Committee and the Directors, Supervisors and Senior Management of PetroChina Company Limited (the “Company”) warrant that there are no material omissions from, or misrepresentation or misleading statements contained in this quarterly report, and jointly and severally accept full responsibility for the truthfulness, accuracy and completeness of the information contained in this quarterly report.

 

1.2.	This quarterly report has been approved at the 12th meeting of the eighth session of the Board of Directors of the Company. All Directors have attended the current meeting of the Board of Directors.

 

1.3.

Mr. Dai Houliang, Chairman of the Board of Directors of the Company, Mr. Huang Yongzhang, Director and President of the Company, and Mr. Chai Shouping, Chief Financial Officer of the Company, warrant the truthfulness, accuracy and completeness of the financial information set out in this quarterly report.

 

1.4.

The financial statements of the Company and its subsidiaries (the “Group”) have been prepared in accordance with the China Accounting Standards (“CAS”) and the International Financial Reporting Standards (“IFRS”), respectively. The financial statements set out in this quarterly report are unaudited.

 

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2.	Basic Information of the Company

 

2.1	Key Financial Data

 

2.1.1

Key Financial Data and Financial Indicators Prepared under IFRS

Unit: RMB Million

		For the three months ended September 30 (July-September)												For the nine months ended September 30 (January-September)
Items		2021				2020				Changes over the same period of the preceding year (%)				2021				2020				Changes over the same period of the preceding year (%)
Revenue			683,760				497,125				37.5				1,880,341				1,426,170				31.8
Profit attributable to owners of the Company			22,089				40,050				(44.8	)			75,126				10,067				646.3
Return on net assets (%)			1.77				3.31				(1.54) percentage points				6.03				0.83				5.20 percentage points
Basic earnings per share (RMB Yuan)			0.121				0.219				(44.8	)			0.410				0.055				646.3
Diluted earnings per share (RMB Yuan)			0.121				0.219				(44.8	)			0.410				0.055				646.3

Unit: RMB Million

Items

From the beginning of the year to the end of the reporting period

From the beginning of the preceding year to the end of the preceding reporting period

Changes over the same period of the preceding year (%)

Net cash flows from operating activities

226,747

163,303

38.9

 

Items		As at the end of the reporting period				As at the end of the preceding year				Changes from the end of the preceding year to the end of the reporting period (%)
Total assets			2,547,660				2,488,126				2.4
Equity attributable to equity holders of the Company			1,245,622				1,215,158				2.5

 

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2.1.2

Key Financial Data and Financial Indicators Prepared under CAS

Unit: RMB Million

		For the three months ended September 30 (July-September)												For the nine months ended September 30 (January-September)
Items		2021				2020				Changes over the same period of the preceding year (%)				2021				2020				Changes over the same period of the preceding year (%)
Operating income			683,760				497,125				37.5				1,880,341				1,426,170				31.8
Net profit attributable to equity holders of the Company			22,086				40,050				(44.8	)			75,122				10,064				646.4
Net profit after deducting non-recurring profit/loss items attributable to equity holders of the Company			23,013				8,586				168.0				68,244				(23,204	)			Increase by RMB91,448 million
Weighted average return on net assets (%)			1.76				3.34				(1.58 percentage points	)			6.05				0.82				5.23 percentage points
Basic earnings per share (RMB Yuan)			0.121				0.219				(44.8	)			0.410				0.055				646.4
Diluted earnings per share (RMB Yuan)			0.121				0.219				(44.8	)			0.410				0.055				646.4

Unit: RMB Million

Items

From the beginning of the year to the end of the reporting period

From the beginning of the preceding year to the end of the preceding reporting period

Changes over the same period of the preceding year (%)

Net cash flows from operating activities

226,747

163,303

38.9

 

Items		As at the end of the reporting period				As at the end of the preceding year				Changes from the end of the preceding year to the end of the reporting period (%)
Total assets			2,547,930				2,488,400				2.4
Equity attributable to equity holders of the Company			1,245,881				1,215,421				2.5

 

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Unit: RMB Million

Non-recurring profit/loss items		For the three months ended September 30 (July-September) profit/(loss)				For the nine months ended September 30 (January– September) profit/(loss)
Profit on disposal of non-current assets			853				842
Government grants recognised in the income statement			213				583
Reversal of provisions for bad debts against receivables			13				31
Net profit on disposal of subsidiaries, associated companies and joint ventures			334				18,951
Other non-recurring expenses, net			(2,241	)			(4,099	)
Sub-total			(828	)			16,308
Tax impact of non-recurring profit/loss items			(2	)			(1,841	)
Impact of non-controlling interests			(97	)			(7,589	)
Total			(927	)			6,878

 

2.1.3

Differences between CAS and IFRS

✓Applicable           ☐Inapplicable

The consolidated net profit for the nine months ended September 30, 2021 under IFRS and CAS were RMB93,059 million and RMB93,055 million, respectively, with a difference of RMB4 million; the consolidated shareholders’ equity as at the end of the reporting period under IFRS and CAS were RMB1,388,535 million and RMB1,388,795 million, respectively, with a difference of RMB260 million, which was primarily due to the revaluation for assets other than fixed assets and oil and gas properties revalued in 1999. During the restructuring in 1999, a valuation was carried out for assets and liabilities injected by China National Petroleum Corporation (中國石油天然氣集團公司, now renamed 中國石油天然氣集團有限公司 on 19 December 2017, “CNPC” before and after the change of name). The valuation results on assets other than fixed assets and oil and gas properties were not recognised in the financial statements prepared under IFRS.

 

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2.2	Total Number of Shareholders, Shareholdings of Top Ten Shareholders and Shareholdings of Top Ten Holders of Marketable Shares (or Holders of Shares Without Selling Restrictions) as at the End of the Reporting Period

 

Number of shareholders as at the end of the reporting period		603,795 shareholders including 597,892 holders of A shares and 5,903 holders of H shares (including 143 holders of the American Depository Shares)
Shareholdings of the top ten shareholders
Name of shareholders		Nature of shareholder		Percentage of Shareholdings (%)				Number of shares held				Number of shares with selling restrictions				Pledged, marked or frozen shares
																Condition of shares				Number of shares
CNPC		State-owned Legal Person			80.25				146,882,339,136	(1)			0								0
HKSCC Nominees Limited(2)		Overseas Legal Person			11.42				20,897,420,228	(3)			0								0
CNPC-CSC-17 CNPC E2 Pledge and Trust Special Account		State-owned Legal Person			2.09				3,819,965,034				0				Pledged				3,819,965,034
CNPC-CSC-17 CNPC EB Pledge and Trust Special Account		State-owned Legal Person			1.12				2,051,488,480				0				Pledged				2,051,488,480
China Securities Finance Corporation Limited		State-owned Legal Person			0.56				1,020,165,128				0								0
Hong Kong Securities Clearing Company Limited (“HKSCC”)(4)		Overseas Legal Person			0.40				725,991,235				0								0
China Metallurgical Group Corporation		State-owned Legal Person			0.31				560,000,000				0								0
Bosera Fund - Ansteel Group Corporation - Bosera Fund Xin’an No.1 Single Asset Management Plan		State-owned Legal Person			0.12				212,039,400				0								0
Central Huijin Asset Management Ltd.		State-owned Legal Person			0.11				206,109,200				0								0
Agricultural Bank of China Limited - Dacheng Xinrui Industrial Hybrid Securities Investment Fund		Others			0.06				104,981,400				0								0

 

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Shareholdings of the top ten shareholders without selling restrictions
Name of shareholders		Number of shares held				Type of shares
CNPC			146,882,339,136				A shares
HKSCC Nominees Limited			20,897,420,228				H shares
CNPC-CSC-17 CNPC E2 Pledge and Trust Special Account			3,819,965,034				A shares
CNPC-CSC-17 CNPC EB Pledge and Trust Special Account			2,051,488,480				A shares
China Securities Finance Corporation Limited			1,020,165,128				A shares
Hong Kong Securities Clearing Company Limited			725,991,235				A shares
China Metallurgical Group Corporation			560,000,000				A shares
Bosera Fund - Ansteel Group Corporation - Bosera Fund Xin’an No.1 Single Asset Management Plan			212,039,400				A shares
Central Huijin Asset Management Ltd.			206,109,200				A shares
Agricultural Bank of China Limited - Dacheng Xinrui Industrial Hybrid Securities Investment Fund			104,981,400				A shares
Statement on the connection or activities acting in concert among the above-mentioned shareholders:   Except for HKSCC Nominees Limited and HKSCC that are wholly-owned subsidiaries of Hong Kong Exchanges and Clearing Limited, the Company is not aware of any connection among or between the other top ten shareholders or that they are persons acting in concert as provided for in the Measures for the Administration of Acquisitions by Listed Companies.

 

Notes:		(1)   Such figure excludes the H shares indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC.
		(2)   HKSCC Nominees Limited is a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited and acts as nominee on behalf of other corporate or individual shareholders to hold the H shares of the Company.
		(3)   291,518,000 H shares were indirectly held by CNPC through Fairy King Investments Limited, an overseas wholly-owned subsidiary of CNPC, representing 0.16% of the total issued shares of the Company. These shares were held in the name of HKSCC Nominees Limited.
		(4)   HKSCC is a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited and acts as the nominee on behalf of investors of Hong Kong Stock Exchange to hold the A shares of the Company listed on Shanghai Stock Exchange.

 

2.3	Number of Shareholders of Preferred Shares, Shareholdings of Top Ten Shareholders of Preferred Shares and Shareholdings of Top Ten Shareholders of Preferred Shares without Selling Restrictions as at the End of the Reporting Period

☐ Applicable            ✓Inapplicable

 

6

2.4	Business Review

Despite the continued economic recovery throughout the world during the first three quarters in 2021, there was a divergence in the development trend of different economies due to the impact from the fluctuating cases in the prevention and control of the Coronavirus Disease 2019 (the “COVID-19”). There was a rapid recovery of the demand in the international crude oil market, which led to a tight balance in the demand and supply. The international crude oil prices continued to rebound, with the average spot price of North Sea Brent crude oil and the average spot price of the West Texas Intermediate (“WTI”) crude oil standing at US$67.94 per barrel and US$65.12 per barrel, representing a surge of 65.7% and 70.8% as compared with the same period of last year, respectively. As China managed to bring COVID-19 under effective control, the domestic macro-economy has been improving and developing on a continued basis. The gross domestic product (GDP) of the first third quarters recorded a 9.8% increase on a year-on-year basis. With the gradual uptick in demand in the international crude oil market, the domestic refined oil market has been largely restored to the pre-COVID-19 levels, and the demand for the natural gas market has also been increased rapidly.

The Group promptly captured the favorable opportunity arising from the recovery of the macro-economy, the uptick in the oil and gas market demand and the rebound of international oil prices, and adhered to the five major development strategies, namely innovation, resources, market, internationalization, green and low-carbon, by focusing on high-quality development and proactively following the requirements of achieving the “carbon peak, carbon neutrality” target and also the trend of energy transformation. We also coordinated a range of works, including the prevention and control of COVID-19, production and operation, quality and profitability enhancement, reform and innovation and ESG matters. As the Group insisted on implementing refined management and strengthening its control over cost and expense, the operation of the oil and gas busines, i.e. the two major industry chains, was stable in general, which resulted that the business operation was significantly improved with continuous promising performance and that the Group and all of its four business segments continued to remain profitable. In the first three quarters of 2021, the average realised price for crude oil of the Group was US$62.66 per barrel, representing an increase of 56.4% as compared with the same period of last year, of which the domestic realised price was US$62.62 per barrel, representing an increase of 51.1% as compared with the same period of last year. The domestic average realised price for natural gas was US$5.93 per thousand cubic feet, representing an increase of 4.6% as compared with the same period of last year after excluding the impacts of foreign exchange. According to IFRS, the Group generated a revenue of RMB1,880,341 million, representing an increase of 31.8% as compared with the same period of last year, and a net profit attributable to owners of the Company of RMB75,126 million, representing an increase of 646.3% as compared with the same period of last year. The substantial growth in free cash flows enable the Group to maintain a sound financial position.

 

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In respect of domestic exploration and production business, the Group intensified its efforts in conducting scientific and technological research and development activities and vigorously promoted profitable exploration, with an aim to increasing the economically recoverable reserves. While the Group continued to achieve profitable development and to constantly facilitate on stable production in old oil and gas fields and profitable production construction in new areas, it also adhered to a low-cost development strategy in order to further strengthen its refined control over costs and expenses. By fully taking the advantages in resources, the Group maintained a rapid growth in its natural gas production and expanded in an orderly manner the coverage of its new energy business. In the first three quarters of 2021, the domestic crude oil output from the Group amounted to 561.1 million barrels, representing an increase of 0.3% as compared with the same period of last year. The marketable natural gas output of the Group amounted to 3,136.6 billion cubic feet, representing an increase of 7.9% as compared with the same period of last year. The oil and gas equivalent output was 1,084.5 million barrels, representing an increase of 3.8% as compared with the same period of last year. In terms of its overseas business, having put in place measures for regular epidemic prevention and control, the Group actively and steadily pushed forward the production and operation of key projects and constantly optimised its business presence and asset structure. In the first three quarters of 2021, the overseas crude oil output from the Group amounted to 100.7 million barrels, representing a decrease of 28.7% as compared with the same period of last year. The marketable natural gas output of the Group amounted to 143.9 billion cubic feet, representing a decrease of 16.6% as compared with the same period of last year. The oil and gas equivalent output was 124.7 million barrels, representing a decrease of 26.6% as compared with the same period of last year. These changes were primarily due to the impact brought by the surge in international oil prices, the decrease in product sharing of several overseas projects and production restriction policies in certain countries with resources. The overall crude oil output from the Group amounted to 662.3 million barrels, representing a decrease of 5.6% as compared with the same period of last year. The marketable natural gas output of the Group amounted to 3,280.5 billion cubic feet, representing an increase of 6.5% as compared with the same period of last year. The oil and gas equivalent output was 1,209.2 million barrels, representing a decrease of 0.4% as compared with the same period of last year. The unit oil and gas lifting cost was US$11.36 per barrel, representing an increase of 12.8% as compared with the same period of last year and an increase of 4.5% after excluding the impacts of foreign exchange. The exploration and production segment achieved in the first three quarters of 2021 an operating income of RMB487,479 million, representing an increase of 25.8%, and achieved an operating profit of RMB58,369 million, representing a surge of 191.8% as compared with the same period of last year.

In respect of refining and chemicals business, the Group adhered to the market-oriented and profitability-focused approach. Through optimising our production and operation, the production facilities of the Group were smoothly operated and under control, which resulted that most of the technical and economic indicators were improved on a year-on-year basis. Further, the Group continued to carry out the transformation and upgrading of our refining and chemical business, and optimised in a timely manner its product structure to in line with market demand. At the same time, we vigorously control the oil production and increase the chemicals production, continuously reduced the yield of gasoline and diesel products, adopt a flexible approach in adjusting the ratio of diesel fuel to gasoline, and maintain a high load operation of ethylene as well as other key chemical units. Following the successful completion, and the subsequent commencement of operation of the ethane to ethylene projects in Changqing and Tarim, the Group vigorously enhanced its technological innovation and actively promoted the research and development of new chemical products and materials. We also intensified our marketing efforts and focused on identifying direct sales customers with an aim to increasing to the fullest extent as possible the production and sale of high value-added chemical products. As we further strengthened our control over costs and expenses, we were in position to achieve a continuous reduction in unit processing costs under the rising oil price. In the first three quarters of 2021, the Group processed a total amount of 911.9 million barrels of crude oil, representing an increase of 3.9% as compared with the same period of last year. The Group produced 81.327 million tons of gasoline, kerosene and diesel, representing an increase of 1.4% as compared with the same period of last year. The output of chemical products amounted to 22.695 million tons, representing an increase of 5.5% as compared with the same period of last year. The refining and chemicals segment achieved in the first three quarters in 2021 an operating income of RMB705,811 million, representing an increase of 22.0% as compared with the same period of last year, and an operating profit of RMB31,990 million, representing an increase of RMB33,658 million as compared with the same period of last year, of which the refining operations recorded an operating income of RMB533,190 million, representing an increase of 19.0% as compared the same period of last year, and an operating profit of RMB20,133 million, representing an increase of RMB28,403 million as compared the same period of last year; and the chemical operations achieved an operating income of RMB172,621 million, representing an increase of 32.2% as compared with the same period of last year, and an operating profit of RMB11,857 million, representing an increase of RMB5,255 million as compared with the same period of last year, which hit its historical high for the same period.

 

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In respect of the marketing business, the Group strengthened the connection between production and sales in line with market changes, coordinated and optimized the flow of resources and enhanced the management of the inventory of refined oil products, which effectively benefited sales for upstream production. As we continuously intensified our marketing initiatives, vigorously implemented refined marketing, and proactively identified end customers, we were able to effectively improve the price realization rate. Further, by coordinating the international and domestic markets and optimising the operation of international trade business, the plan for the export of refined oil products was rationalized based on the profitability of such products, resulting in an improvement in the overall profitability of the value chain. We actively achieved innovation in connection with the method of operation of non-oil business and continuously improved the quality of convenience store development, which contributed to a significant improvement in the profitability of the non-oil business on a year-on-year basis. We also continuously strengthened the development of sales network and applied different digital technologies, which include the Internet of Things, cloud platform, big data and artificial intelligence, to actively explore the development of an integrated energy service platform covering “oil, gas, hydrogen, electricity and non-oil business”. As a result, the first integrated energy service station in China officially commenced operation. In the first three quarters of 2021, the Group recorded a sales of 123.694 million tons of gasoline, kerosene and diesel, representing an increase of 2.5% as compared with the same period of last year, of which the domestic sales of gasoline, kerosene and diesel amounted to 84.106 million tons, representing an increase of 8.1% as compared with the same period of last year. The sales segment recorded in the first three quarters of 2021 an operating income of RMB1,557,629 million, representing an increase of 37.8% as compared with the same period of last year, and an operating profit of RMB8,776 million, representing an increase of RMB13,712 million as compared with the same period of last year.

In respect of natural gas and pipeline business, by capitalising on the favourable opportunities arising from the domestic natural gas market with features that the demand remained unabated during low seasons but became excessive during in peak seasons, the Group intensified its efforts in exploring the market and actively optimised its sales structure. We actively identified direct-supply and direct-marketing customers, continued to strengthen the construction of terminal sales network so as to improve the quality of our customer service and to promote to the fullest extent as possible the expansion of sales and increase profitability. Our natural gas sales experienced a significant growth accordingly. These also enabled us to provide a stable and clean low-carbon energy supply for the green and low-carbon economy transformation. Further, the Group continuously optimised our gas resource structure, rationalised our procurement cycle, allocated long-term trade and spot resources in a scientific manner and actively reduced our procurement costs, which resulted in improving our sales profitability. By following the market-oriented and rule-of-law principles, the restructuring of KunLun Energy Company Limited pipeline assets was successfully completed and the transaction was closed. In the first three quarters of 2021, the Group recorded a sales of 198,721 million cubic metres of natural gas, representing an increase of 14.4% as compared with the same period of last year, of which the domestic sales of natural gas amounted to 138,105 million cubic metres, representing an increase of 16.2% as compared with the same period of last year. The natural gas and pipeline segment recorded in the first three quarters of 2021 an operating income of RMB285,023 million, representing an increase of 10.3% as compared with the same period of last year, and an operating profit of RMB36,715 million, representing a decrease of 36.4%, or an increase of 55.1% after excluding the impact of the gains from pipeline restructuring generated in both the current year and also the previous year, as compared with the same period of last year.

 

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Summary of Key Operating Data for the First Three Quarters of 2021

 

Operating Data		Unit		For the nine months ended September 30								Changes over the same period of the preceding year (%)
				2021				2020
Total crude oil output		Million barrels			662.3				701.2				(5.6	)
of which: domestic		Million barrels			561.6				560.0				0.3
overseas		Million barrels			100.7				141.2				(28.7	)
Marketable natural gas output		Billion cubic feet			3,280.5				3,079.8				6.5
of which: domestic		Billion cubic feet			3,136.6				2,907.4				7.9
overseas		Billion cubic feet			143.9				172.4				(16.6	)
Oil and natural gas equivalent output		Million barrels			1,209.2				1,214.6				(0.4	)
of which: domestic		Million barrels			1,084.5				1,044.7				3.8
overseas		Million barrels			124.7				169.9				(26.6	)
Processed crude oil		Million barrels			911.9				877.3				3.9
Gasoline, kerosene and diesel output		Thousand tons			81,327				80,192				1.4
of which: Gasoline		Thousand tons			37,400				34,007				10.0
Kerosene		Thousand tons			9,200				7,186				28.0
Diesel		Thousand tons			34,727				38,999				(11.0	)
Gasoline, kerosene and diesel gross sales		Thousand tons			123,694				120,645				2.5
of which: Gasoline		Thousand tons			50,621				50,251				0.7
Kerosene		Thousand tons			12,217				10,264				19.0
Diesel		Thousand tons			60,856				60,130				1.2
Gasoline, kerosene and diesel domestic sales		Thousand tons			84,106				77,837				8.1
of which: Gasoline		Thousand tons			40,139				36,349				10.4
Kerosene		Thousand tons			7,348				5,402				36.0
Diesel		Thousand tons			36,619				36,086				1.5
Output of key chemical products
Ethylene		Thousand tons			4,756				4,714				0.9
Synthetic resin		Thousand tons			7,834				7,637				2.6
Synthetic fibre raw materials and polymer		Thousand tons			862				953				(9.5	)
Synthetic rubber		Thousand tons			761				743				2.4
Urea		Thousand tons			1,802				1,634				10.3

Notes: Figures have been converted at the rate of 1 ton of crude oil = 7.389 barrels and 1 cubic metre of natural gas = 35.315 cubic feet.

 

Number of self-operated gas station and convenience store		Unit				As at September 30, 2021				As at December 31, 2020				Changes over the same period of the preceding year (%)
Number of self-operated gas station			Unit				22,551				22,619				(0.3	)
Number of convenience store			Unit				20,109				20,212				(0.5	)

 

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3.	Significant Events

 

3.1	Significant changes in key accounting items and financial indicators under CAS and explanation of such changes

✓Applicable             ☐Inapplicable

Unit: RMB Million

 

Items		For the nine months ended September 30								Changes (%)				Key explanation of the changes
		2021				2020
Operating income			1,880,341				1,426,170				31.8			Mainly due to the increase in the sales of most of the oil and gas products together with the surge in prices
Net profit attributable to equity holders of the Company			75,122				10,064				646.4			Mainly due to the combined effect from the increase in the sales of most of the oil and gas products, the surge in prices together with gains from restructuring of pipelines
Net profit after deducting non-recurring profit/loss items attributable to equity holders of the Company			68,244				(23,204)				—			Mainly due to the combined effect from the substantial increase in the net profit attributable to equity holders of the Company together with gains from restructuring of pipelines
Net cash flows from operating activities			226,747				163,303				38.9			Mainly due to the combined effect from the increase in net profit and the change in working capital
Weighted average returns on net assets (%)			6.05				0.82				5.23 percentage points			Mainly due to the substantial increase in the net profit attributable to equity holders of the Company
Basic earnings per share (RMB Yuan)			0.410				0.055				646.4			Mainly due to the substantial increase in the net profit attributable to equity holders of the Company
Diluted earnings per share (RMB Yuan)			0.410				0.055				646.4			Mainly due to the substantial increase in the net profit attributable to equity holders of the Company

 

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3.2	Other Major Matters

☐Applicable             ✓Inapplicable

By Order of the Board of Directors

PetroChina Company Limited

Dai Houliang

Chairman

Beijing, the PRC

October 28, 2021

As at the date of this announcement, the Board of Directors of the Company comprises Mr. Dai Houliang as the Chairman; Mr. Hou Qijun as Vice Chairman and non-executive director; Mr. Duan Liangwei, Mr. Liu Yuezhen, and Mr. Jiao Fangzheng as non-executive directors; Mr. Huang Yongzhang and Mr. Ren Lixin as executive directors; and Ms. Elsie Leung Oi-sie, Mr. Tokuchi Tatsuhito, Mr. Simon Henry, Mr. Cai Jinyong and Mr. Jiang, Simon X. as independent non-executive directors.

This announcement is published in English and Chinese. In the event of any inconsistency between the two versions, the Chinese version shall prevail.

 

12

Appendix

A. Financial statements for the third quarter of 2021 prepared in accordance with CAS

1. Consolidated Balance Sheet

 

		September 30, 2021				December 31, 2020
ASSETS		RMB million				RMB million
Current assets
Cash at bank and on hand			205,006				145,950
Accounts receivable			87,366				52,325
Receivables financing			4,130				8,076
Advances to suppliers			26,037				21,626
Other receivables			25,297				26,834
Inventories			147,957				128,539
Assets held for sale			—				42,615
Other current assets			52,149				60,802
Total current assets			547,942				486,767
Non-current assets
Investments in other equity instruments			1,099				910
Long-term equity investments			263,255				250,698
Fixed assets			412,121				415,988
Oil and gas properties			778,758				813,888
Construction in progress			239,536				222,215
Right-of-use assets			140,787				144,338
Intangible assets			88,069				86,101
Goodwill			8,312				8,125
Long-term prepaid expenses			10,643				11,869
Deferred tax assets			12,206				11,364
Other non-current assets			45,202				36,137
Total non-current assets			1,999,988				2,001,633
TOTAL ASSETS			2,547,930				2,488,400

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

13

1. Consolidated Balance Sheet (Continued)

 

		September 30, 2021				December 31, 2020
LIABILITIES AND SHAREHOLDERS’ EQUITY		RMB million				RMB million
Current liabilities
Short-term borrowings			65,502				41,354
Notes payable			19,435				19,313
Accounts payable			216,940				220,318
Contracts liabilities			89,632				91,477
Employee compensation payable			17,238				8,649
Taxes payable			45,352				63,724
Other payables			106,304				56,250
Liabilities held for sale			—				9,956
Current portion of non-current liabilities			39,048				81,769
Other current liabilities			9,982				12,608
Total current liabilities			609,433				605,418
Non-current liabilities
Long-term borrowings			188,460				160,140
Debentures payable			91,223				91,239
Lease liabilities			122,779				122,644
Provisions			119,113				114,819
Deferred tax liabilities			18,144				16,390
Other non-current liabilities			9,983				10,865
Total non-current liabilities			549,702				516,097
Total liabilities			1,159,135				1,121,515
Shareholders’ equity
Share capital			183,021				183,021
Capital surplus			127,958				127,222
Special reserve			12,397				10,810
Other comprehensive income			(39,247	)			(32,128	)
Surplus reserves			203,557				203,557
Undistributed profits			758,195				722,939
Equity attributable to equity holders of the Company			1,245,881				1,215,421
Non-controlling interests			142,914				151,464
Total shareholders’ equity			1,388,795				1,366,885
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			2,547,930				2,488,400

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

14

2. Company Balance Sheet

 

		September 30, 2021				December 31, 2020
ASSETS		RMB million				RMB million
Current assets
Cash at bank and on hand			63,693				42,787
Accounts receivable			12,338				8,412
Receivables financing			3,369				2,830
Advances to suppliers			15,486				8,861
Other receivables			4,702				14,738
Inventories			92,659				77,813
Other current assets			39,111				44,614
Total current assets			231,358				200,055
Non-current assets
Investments in other equity instruments			397				427
Long-term equity investments			459,285				451,677
Fixed assets			257,360				264,241
Oil and gas properties			581,158				598,665
Construction in progress			155,660				142,470
Right-of-use assets			63,239				66,765
Intangible assets			66,866				65,841
Goodwill			30				30
Long-term prepaid expenses			8,409				8,980
Deferred tax assets			—				2,008
Other non-current assets			17,818				13,524
Total non-current assets			1,610,222				1,614,628
TOTAL ASSETS			1,841,580				1,814,683

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

15

2. Company Balance Sheet (Continued)

 

		September 30, 2021				December 31, 2020
LIABILITIES AND SHAREHOLDERS’ EQUITY		RMB million				RMB million
Current liabilities
Short-term borrowings			22,050				25,923
Notes payable			18,537				18,203
Accounts payable			80,091				99,276
Contracts liabilities			63,617				59,877
Employee compensation payable			14,275				6,559
Taxes payable			27,917				45,769
Other payables			122,588				74,496
Current portion of non-current liabilities			17,369				64,745
Other current liabilities			6,386				1,791
Total current liabilities			372,830				396,639
Non-current liabilities
Long-term borrowings			99,713				68,829
Debentures payable			87,000				87,000
Lease liabilities			47,957				47,983
Provisions			84,976				81,941
Deferred tax liabilities			568				—
Other non-current liabilities			5,218				5,496
Total non-current liabilities			325,432				291,249
Total liabilities			698,262				687,888
Shareholders’ equity
Share capital			183,021				183,021
Capital surplus			127,315				127,044
Special reserve			6,033				4,708
Other comprehensive income			361				455
Surplus reserves			192,465				192,465
Undistributed profits			634,123				619,102
Total shareholders’ equity			1,143,318				1,126,795
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			1,841,580				1,814,683

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

16

3-1. Consolidated Income Statement

 

		Three months ended September 30
		2021				2020
Items		RMB million				RMB million
Operating income			683,760				497,125
Less: Cost of sales			(551,105	)			(393,546	)
Taxes and surcharges			(60,507	)			(48,397	)
Selling expenses			(18,385	)			(17,068	)
General and administrative expenses			(14,805	)			(13,833	)
Research and development expenses			(3,706	)			(3,639	)
Finance expenses			(4,111	)			(5,863	)
Including: Interest expenses			(4,630	)			(5,967	)
Interest income			451				755
Add: Other income			1,479				2,621
Investment income			4,989				44,643
Including: Income from investment in associates and joint ventures			3,811				858
Credit losses			(68	)			(30	)
Asset impairment (losses)/ reversal			(75	)			39
Gain on asset disposal			381				68
Operating profit			37,847				62,120
Add: Non-operating income			1,038				1,291
Less: Non-operating expenses			(2,699	)			(1,935	)
Profit before income tax			36,186				61,476
Less: Income tax expenses			(10,947	)			(17,474	)
Net profit			25,239				44,002
Classified by continuity of operations:
Net profit from continuous operation			25,239				44,002
Net profit from discontinued operation			—				—
Classified by ownership:
Shareholders of the Company			22,086				40,050
Non-controlling interests			3,153				3,952
Earnings per share
Basic earnings per share (RMB Yuan)			0.121				0.219
Diluted earnings per share (RMB Yuan)			0.121				0.219
Other comprehensive income, net of tax			(4,590	)			(6,711	)
Other comprehensive income (net of tax) attributable to equity holders of the Company			(4,757	)			(2,488	)
(1) Items that will not be reclassified to profit or loss:
Changes in fair value of investments in other equity instruments			64				39
(2) Items that may be reclassified to profit or loss:
Other comprehensive income recognised under equity method			242				(233	)
Translation differences arising from translation of foreign currency financial statements			(5,063	)			(2,294	)
Other comprehensive income (net of tax) attributable to non-controlling interests			167				(4,223	)
Total comprehensive income			20,649				37,291
Attributable to:
Equity holders of the Company			17,329				37,562
Non-controlling interests			3,320				(271	)

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

17

3-2. Consolidated Income Statement

 

		Nine months ended September 30
		2021				2020
Items		RMB million				RMB million
Operating income			1,880,341				1,426,170
Less: Cost of sales			(1,508,745	)			(1,163,739	)
Taxes and surcharges			(162,591	)			(146,820	)
Selling expenses			(50,787	)			(49,340	)
General and administrative expenses			(41,227	)			(38,968	)
Research and development expenses			(11,994	)			(10,414	)
Finance expenses			(13,321	)			(19,368	)
Including: Interest expenses			(14,824	)			(20,853	)
Interest income			1,730				2,151
Add: Other income			3,988				6,704
Investment income			31,202				45,706
Including: Income from investment in associates and joint ventures			11,244				1,428
Credit losses			(336	)			(381	)
Asset impairment losses			(549	)			(8,112	)
Gain on asset disposal			842				929
Operating profit			126,823				42,367
Add: Non-operating income			1,945				2,751
Less: Non-operating expenses			(5,567	)			(2,165	)
Profit before income tax			123,201				42,953
Less: Income tax expenses			(30,146	)			(22,278	)
Net profit			93,055				20,675
Classified by continuity of operations:
Net profit from continuous operation			93,055				20,675
Net profit from discontinued operation			—				—
Classified by ownership:
Shareholders of the Company			75,122				10,064
Non-controlling interests			17,933				10,611
Earnings per share
Basic earnings per share (RMB Yuan)			0.410				0.055
Diluted earnings per share (RMB Yuan)			0.410				0.055
Other comprehensive income, net of tax			(7,772	)			(7,144	)
Other comprehensive income (net of tax) attributable to equity holders of the Company			(7,119	)			(3,802	)
(1) Items that will not be reclassified to profit or loss:
Changes in fair value of investments in other equity instruments			65				(27	)
(2) Items that may be reclassified to profit or loss:
Other comprehensive income recognised under equity method			173				(158	)
Translation differences arising from translation of foreign currency financial statements			(7,357	)			(3,617	)
Other comprehensive income (net of tax) attributable to non-controlling interests			(653	)			(3,342	)
Total comprehensive income			85,283				13,531
Attributable to:
Equity holders of the Company			68,003				6,262
Non-controlling interests			17,280				7,269

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

18

4-1. Income Statement

 

		Three months ended September 30
		2021				2020
Items		RMB million				RMB million
Operating income			355,661				287,879
Less: Cost of sales			(260,260	)			(223,164	)
Taxes and surcharges			(45,976	)			(37,672	)
Selling expenses			(12,799	)			(12,396	)
General and administrative expenses			(9,394	)			(8,259	)
Research and development expenses			(2,632	)			(2,614	)
Finance expenses			(3,512	)			(5,201	)
Including: Interest expenses			(3,610	)			(3,581	)
Interest income			195				375
Add: Other income			1,329				1,815
Investment income			5,679				88,592
Including: Income from investment in associates and joint ventures			2,884				1,194
Credit losses			(85	)			(22	)
Asset impairment (losses)/reversal			(59	)			7
Gains on asset disposal			369				336
Operating profit			28,321				89,301
Add: Non-operating income			741				1,095
Less: Non-operating expenses			(2,182	)			(1,618	)
Profit before income tax			26,880				88,778
Less: Income tax expenses			(6,198	)			(18,133	)
Net profit			20,682				70,645
Classified by continuity of operations:
Net profit from continuous operation			20,682				70,645
Net profit from discontinued operation			—				—
Earnings per share
Basic earnings per share (RMB Yuan)			0.113				0.386
Diluted earnings per share (RMB Yuan)			0.113				0.386
Other comprehensive income, net of tax			36				(283	)
Other comprehensive income attributable to equity shareholders of the Company, net of tax			36				(283	)
(1) Items that will not be reclassified to profit or loss:
Changes in fair value of investments in other equity instruments			3				21
(2) Items that may be reclassified to profit or loss:
Other comprehensive income recognised under equity method			33				(304	)
Total comprehensive income			20,718				70,362

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

19

4-2. Income Statement

 

		Nine months ended September 30
		2021				2020
Items		RMB million				RMB million
Operating income			1,016,474				801,995
Less: Cost of sales			(757,839	)			(650,293	)
Taxes and surcharges			(126,404	)			(114,510	)
Selling expenses			(35,080	)			(34,609	)
General and administrative expenses			(26,570	)			(24,318	)
Research and development expenses			(9,729	)			(8,250	)
Finance expenses			(11,207	)			(16,304	)
Including: Interest expenses			(11,326	)			(14,797	)
Interest income			456				726
Add: Other income			2,927				5,016
Investment income			19,445				106,318
Including: Income from investment in associates and joint ventures			8,423				2,586
Credit losses			(113	)			(161	)
Asset impairment losses			(95	)			(1,960	)
Gains on asset disposal			792				1,192
Operating profit			72,601				64,116
Add: Non-operating income			1,433				2,217
Less: Non-operating expenses			(4,603	)			(4,414	)
Profit before income tax			69,431				61,919
Less: Income tax expenses			(14,544	)			(12,022	)
Net profit			54,887				49,897
Classified by continuity of operations:
Net profit from continuous operation			54,887				49,897
Net profit from discontinued operation			—				—
Earnings per share
Basic earnings per share (RMB Yuan)			0.300				0.273
Diluted earnings per share (RMB Yuan)			0.300				0.273
Other comprehensive income, net of tax			(93	)			(256	)
Other comprehensive income attributable to equity shareholders of the Company, net of tax			(93	)			(256	)
(1) Items that will not be reclassified to profit or loss:
Changes in fair value of investments in other equity instruments			(23	)			(27	)
(2) Items that may be reclassified to profit or loss:
Other comprehensive income recognised under equity method			(70	)			(229	)
Total comprehensive income			54,794				49,641

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

20

5. Consolidated Cash Flow Statement

 

		Nine months ended September 30
		2021				2020
Items		RMB million				RMB million
Cash flows from operating activities
Cash received from sales of goods and rendering of services			2,185,778				1,587,335
Cash received relating to other operating activities			5,013				7,164
Sub-total of cash inflows			2,190,791				1,594,499
Cash paid for goods and services			(1,593,822	)			(1,095,006	)
Cash paid to and on behalf of employees			(99,935	)			(94,449	)
Payments of various taxes			(248,692	)			(220,111	)
Cash paid relating to other operating activities			(21,595	)			(21,630	)
Sub-total of cash outflows			(1,964,044	)			(1,431,196	)
Net cash flows from operating activities			226,747				163,303
Cash flows from investing activities
Cash received from disposal of investments			20,339				276
Cash received from returns on investments			13,829				3,701
Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and other long-term assets			2,881				251
Net cash received from disposal of subsidiaries and other business units			33,457				—
Sub-total of cash inflows			70,506				4,228
Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term assets			(169,952	)			(167,035	)
Cash paid to acquire investments			(29,618	)			(14,639	)
Sub-total of cash outflows			(199,570	)			(181,674	)
Net cash flows used for investing activities			(129,064	)			(177,446	)
Cash flows from financing activities
Cash received from capital contributions			4				143
Including: Cash received from non-controlling interests’ capital contributions to subsidiaries			4				143
Cash received from borrowings			614,821				831,465
Sub-total of cash inflows			614,825				831,608
Cash repayments of borrowings			(605,680	)			(774,579	)
Cash payments for interest expenses and distribution of dividends or profits			(43,487	)			(41,253	)
Including: Subsidiaries’ cash payments for distribution of dividends or profits to non-controlling interests			(15,107	)			(14,172	)
Cash payments relating to other financing activities			(8,551	)			(10,973	)
Sub-total of cash outflows			(657,718	)			(826,805	)
Net cash flows (used for)/from financing activities			(42,893	)			4,803
Effect of foreign exchange rate changes on cash and cash equivalents			(841	)			(1,546	)
Net increase/(decrease) in cash and cash equivalents			53,949				(10,886	)
Add: Cash and cash equivalents at beginning of the period			118,631				86,409
Cash and cash equivalents at end of the period			172,580				75,523

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

21

6. Company Cash Flow Statement

 

		Nine months ended September 30
		2021				2020
Items		RMB million				RMB million
Cash flows from operating activities
Cash received from sales of goods and rendering of services			1,276,465				880,264
Cash received relating to other operating activities			4,049				5,049
Sub-total of cash inflows			1,280,514				885,313
Cash paid for goods and services			(823,672	)			(540,116	)
Cash paid to and on behalf of employees			(71,981	)			(66,645	)
Payments of various taxes			(202,874	)			(162,965	)
Cash paid relating to other operating activities			(18,822	)			(26,627	)
Sub-total of cash outflows			(1,117,349	)			(796,353	)
Net cash flows from operating activities			163,165				88,960
Cash flows from investing activities
Cash received from disposal of investments			5,543				13,510
Cash received from returns on investments			28,433				18,011
Net cash received from disposal of fixed assets, oil and gas properties, intangible assets and other long-term assets			2,772				241
Sub-total of cash inflows			36,748				31,762
Cash paid to acquire fixed assets, oil and gas properties, intangible assets and other long-term assets			(118,025	)			(105,675	)
Cash paid to acquire investments			(8,104	)			(18,917	)
Sub-total of cash outflows			(126,129	)			(124,592	)
Net cash flows used for investing activities			(89,381	)			(92,830	)
Cash flows from financing activities
Cash received from borrowings			131,844				269,474
Sub-total of cash inflows			131,844				269,474
Cash repayments of borrowings			(152,311	)			(236,068	)
Cash payments for interest expenses and distribution of dividends or profits			(26,533	)			(23,550	)
Cash payments relating to other financing activities			(3,878	)			(5,535	)
Sub-total of cash outflows			(182,722	)			(265,153	)
Net cash flows (used for)/from financing activities			(50,878	)			4,321
Net increase in cash and cash equivalents			22,906				451
Add: Cash and cash equivalents at beginning of the period			40,787				4,636
Cash and cash equivalents at end of the period			63,693				5,087

 

Chairman Dai Houliang				Director and President Huang Yongzhang				Chief Financial Officer Chai Shouping

 

22