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 2015

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

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	Page

Signature Page		3

2015 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)

2015 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 (the “Board”) and the Supervisory Committee of Sinopec Shanghai Petrochemical Company Limited (the “Company” or “SPC”) as well as its directors, supervisors and senior management warrant the truthfulness, accuracy and completeness of the information contained in this quarterly report, and warrant that there are no false representations or misleading statements contained in or material omissions from this report and severally and jointly accept responsibility pursuant to such information.

1.2 All directors attended the tenth meeting of the eighth session of the Board for the consideration of the 2015 third quarterly report, and have adopted the 2015 third quarterly report at the meeting.

1.3 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, person-in-charge of Accounting Department (Deputy Chief Financial Officer and Finance Manager) warrant the truthfulness, accuracy and completeness of the financial report contained in this quarterly report.

1.4 The financial report of the Company for the nine-month period ended 30 September 2015 (the “Reporting Period”) was prepared under the China Accounting Standards for Business Enterprises and is unaudited.

2.	Key Financial Data & Change in Shareholdings

2.1 Major Accounting Data


	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)		28,336,248		31,145,983		-9.02
Total equity attributable to equity shareholders of the Company (RMB’000)		18,881,562		16,570,623		13.95

	From the beginning of the year to the end of the Reporting Period (January to September 2015)		From the beginning of the year to the end of the Reporting Period last year (January to September 2014)		Increase/decrease as compared to the corresponding period of the previous year (%)
Net cash flows generated from operating activities (RMB’000)		3,388,685		1,710,637		98.09

	From the beginning of the year to the end of the Reporting Period (January to September 2015)		From the beginning of the year to the end of the Reporting Period last year (January to September 2014)		Increase/decrease as compared to the corresponding period of the previous year (%)
Revenue (RMB’000)		61,557,902		76,718,822		-19.76
Net profit attributable to equity shareholders of the Company (“-” to indicate net loss) (RMB’000)		2,245,704		-152,106		Not Applicable
Net profit attributable to equity shareholders of the Company excluding non-recurring items (“-” to indicate net loss) (RMB’000)		2,218,532		-268,292		Not Applicable
Return on net assets (weighted average) (%)		12.669		-0.869		Increased by 13.538 percentage points
Basic earnings per share (“-” to indicate loss) (RMB/share)		0.208		-0.014		Not Applicable
Diluted earnings per share (“-” to indicate loss) (RMB/share)		0.208		-0.014		Not Applicable

Excluding non-recurring items and amount:

Unit: RMB’000


Item	Amount for the Reporting Period (July to September 2015)		Amount for the period from the beginning of the year to the end of the Reporting Period (January to September 2015)
Net losses on disposal of non-current assets		-4,092		-12,019
Employee reduction expenses		-5,422		-15,686
Government grants recognised through profit and loss except for government grants under the State’s unified standards on quota and amount entitlements and closely related to corporate business		21,841		28,996
Income from external entrusted loans		717		2,166
Income from forward foreign exchange contracts		30,223		37,154
Other non-operating income and expenses other than those mentioned above		-18,069		-19,834
Tax effect for the items above		6,255		5,053
Effect on minority interests (after tax)		784		1,342

Total		32,237		27,172

2.2 Total Number of Shareholders as at the End of the Reporting Period, Top Ten Shareholders and Shareholdings of the Top Ten Shareholders of Shares in Circulation (or Unrestricted Shares)

Unit: Share

Total number of shareholders

172,935

Shareholdings of the top ten shareholders


Name of shareholder (in full)	Number of shares held at the end of the Reporting Period		Percentage of total shareholding (%)		Number of shares with selling restrictions		Number of shares pledged or frozen				Type of shareholder
Name of shareholder (in full)	Number of shares held at the end of the Reporting Period		Percentage of total shareholding (%)		Number of shares with selling restrictions		Situation of the shares		Number		Type of shareholder
China Petroleum & Chemical Corporation		5,460,000,000		50.56		4,380,000,000		Nil		—	State-owned enterprise legal person
HKSCC (Nominees) Limited		3,453,138,320		31.97		0		Unknown		—	Foreign legal person
China Securities Finance Corporation Limited		322,921,736		2.99		0		Unknown		—	Others
Central Huijin Investment Ltd.		67,655,800		0.63		0		Unknown		—	Others
Agricultural Bank of China Limited - Fullgoal CSI State-Owned Enterprises Reform Index Classified Fund		35,396,892		0.33		0		Unknown		—	Others
NSSF One Hundred Ten Combination		19,729,897		0.18		0		Unknown		—	Others
Bank of China Limited — ChinaAMC new economy flexible configured hybrid securities investment fund		19,645,656		0.18		0		Unknown		—	Others
Shanghai Kangli Gong Mao Company		17,400,000		0.16		0		Unknown		—	Others
Bosera Funds — Agricultural Bank — Bosera China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others
GF Fund — Agricultural Bank — GF China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others
ICBC Credit Suisse Fund — Agricultural Bank — ICBC Credit Suisse China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others
Yinhua Fund — Agricultural Bank — Yinhua China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others
EFund — Agricultural Bank — EFund China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others
ChinaAMC Fund — Agricultural Bank — ChinaAMC China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others
China Southern Fund — Agricultural Bank — China Southern China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others
Zhong Ou Fund — Agricultural Bank — Zhong Ou China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others
Harvest Fund — Agricultural Bank — Harvest China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others
Da Cheng Fund — Agricultural Bank — Da Cheng China Securities and Financial Assets Management Program		13,743,400		0.13		0		Unknown		—	Others

Shareholding of the top ten shareholders of shares without selling restriction


Name of shareholder	Number of unrestricted shares in circulation held		Type and number of shares
Name of shareholder	Number of unrestricted shares in circulation held		Type		Number
HKSCC (Nominees) Limited		3,453,138,320		Overseas listed foreign shares		3,453,138,320
China Petroleum & Chemical Corporation		1,080,000,000		RMB-denominated ordinary shares		1,080,000,000
China Securities Finance Corporation Limited		322,921,736		RMB-denominated ordinary shares		322,921,736
Central Huijin Investment Ltd.		67,655,800		RMB-denominated ordinary shares		67,655,800
Agricultural Bank of China Limited - Fullgoal CSI State-Owned Enterprises Reform Index Classified Fund		35,396,892		RMB-denominated ordinary shares		35,396,892
NSSF One Hundred Ten Combination		19,729,897		RMB-denominated ordinary shares		19,729,897
Bank of China Limited — ChinaAMC new economy flexible configured hybrid securities investment fund		19,645,656		RMB-denominated ordinary shares		19,645,656
Shanghai Kangli Gong Mao Company		17,400,000		RMB-denominated ordinary shares		17,400,000
Bosera Funds — Agricultural Bank — Bosera China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
GF Fund — Agricultural Bank — GF China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
ICBC Credit Suisse Fund — Agricultural Bank — ICBC Credit Suisse China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
Yinhua Fund — Agricultural Bank — Yinhua China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
EFund — Agricultural Bank — EFund China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
ChinaAMC Fund — Agricultural Bank — ChinaAMC China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
China Southern Fund — Agricultural Bank — China Southern China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
Zhong Ou Fund — Agricultural Bank — Zhong Ou China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
Harvest Fund — Agricultural Bank — Harvest China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
Da Cheng Fund — Agricultural Bank — Da Cheng China Securities and Financial Assets Management Program		13,743,400		RMB-denominated ordinary shares		13,743,400
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 2015		As at 31 December 2014		Increase/ decrease amount		Change (%)		Major reason for change
Cash at bank and on hand		494,521		279,198		215,323		77.12	Profit in the Reporting Period, cash generated from operating activities increased
Deferred tax assets		303,601		915,069		-611,468		-66.82	Profit in the Reporting Period, using deferred income tax assets recognized in the previous years
Short-term borrowings		2,547,454		4,078,195		-1,530,741		-37.53	Profit in the Reporting Period; decline in demand for capital
Accounts payable		2,891,200		5,924,035		-3,032,835		-51.20	A decrease in purchase price
Other payables		855,051		508,551		346,500		68.13	An increase in construction and maintenance payable
Long-term borrowings		—		1,632,680		-1,632,680		-100.00	Profit in the Reporting Period; decline in demand for capital

Unit: RMB’000


Item	For the nine-month period ended 30 September				Increase/ decrease amount		Change (%)		Major reason for change
Item	2015		2014		Increase/ decrease amount		Change (%)		Major reason for change
Revenue		61,557,902		76,718,822		-15,160,920		-19.76	Fall in unit price of products
Cost of sales		46,009,615		67,485,251		-21,475,636		-31.82	A fall in the cost of raw materials, leading to the lower unit cost of products
Taxes and surcharges		10,290,714		6,720,066		3,570,648		53.13	An increase in consumption tax rate
Financial expenses-net		245,837		355,419		-109,582		-30.83	Fall in interest expenses of borrowings
Investment income (“-” to indicate loss)		499,849		-24,304		524,153		NA	Profit made by associates
Operating profit (“-” to indicate loss)		2,919,132		-251,916		3,171,048		NA	A significant fall in the cost of major raw materials, increase in gross profit of products
Total profit (“-” to indicate loss)		2,916,275		-157,692		3,073,967		NA	A significant fall in the cost of major raw materials, increase in gross profit of products
Net profit attributable to equity shareholders of the Company (“-” to indicate net loss)		2,245,704		-152,106		2,397,810		NA	A significant fall in the cost of major raw materials, increase in gross profit of products
Income tax expenses		640,499		-12,215		652,714		NA	Profit in the Reporting period

3.2 Fulfillment of commitments by the Company and shareholders holding more than 5% of shares

(1)	The Company disclosed The Explanatory Memorandum for the Share Reform Proposal of the Company (the Revised Draft) on 20 June 2013, in which the Company’s controlling shareholder Sinopec Corp. has made an undertaking that:

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

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

The Reform Scheme was reviewed and approved at the relevant shareholders’ meeting in the A-share market held on 8 July 2013. After the implementation of the proposal on 20 August 2013, the Company’s A shares resumed trading, and non-circulating shares previously held by non-circulating shares shareholders were obtained for circulation.

(2)

The Company disclosed Announcement Regarding Controlling Shareholder’s Undertaking Not to Reduce Its Shareholding and Other Related Matters on 13 July 2015, in which the Company’s controlling shareholder Sinopec Corp. made an undertaking that it will not reduce its shareholding in the Company within six months from the date that the announcement was published.

With regard to the aforementioned three undertakings, the Company did not notice any violation of the undertakings or any unfulfilled matters overdue during the reporting period.

3.3 Early warning and notes about potential negative value of cumulative net profit from the beginning of this year to the end of the next reporting period, or significant changes thereof as compared with last year

As the Group recorded net profit attributable to shareholders of the Company of RMB 2,246 million under CAS for the first three quarters of 2015, the annual results as of 31 December 2015 is expected to reverse losses to profit as compared to the same period of last year.

4	APPENDIX

4.1

CONSOLIDATED BALANCE SHEETS

AS AT 30 SEPTEMBER 2015

Unit: RMB’000


Items	30 September 2015		31 December 2014
	(unaudited)		(audited)
Current assets
Cash at bank and on hand		494,521		279,198
Notes receivable		1,600,099		1,372,277
Accounts receivable		1,708,498		1,628,121
Advances to suppliers		58,086		31,098
Interests receivable		76		76
Dividends receivable		—		19,372
Other receivables		38,529		51,771
Inventories		4,245,559		5,930,703
Other current assets		169,125		197,799


Total current assets		8,314,493		9,510,415


Non-current assets
Long-term equity investments		3,388,593		3,106,262
Investment properties		408,961		415,842
Fixed assets		14,422,046		15,611,926
Construction in progress		648,318		542,878
Intangible assets		427,932		441,140
Long-term prepaid expenses		422,304		602,451
Deferred tax assets		303,601		915,069


Total non-current assets		20,021,755		21,635,568


Total assets		28,336,248		31,145,983

CONSOLIDATED BALANCE SHEETS (CONTINUED)

AS AT 30 SEPTEMBER 2015

Unit: RMB’000


Items	30 September 2015		31 December 2014
	(unaudited)		(audited)
Current liabilities
Short-term borrowings		2,547,454		4,078,195
Notes payable		54,000		11,714
Accounts payable		2,891,200		5,924,035
Advances from customers		775,719		612,573
Employee benefits payable		104,524		44,464
Taxes payable		1,220,179		1,276,874
Interest payable		3,555		9,037
Dividends payable		19,300		19,406
Other payables		855,051		508,551
Current portion of non-current liabilities		513,760		—


Total current liabilities		8,984,742		12,484,849


Non-current liabilities
Long-term borrowings		—		1,632,680
Deferred revenue		178,936		186,436


Total non-current liabilities		178,936		1,819,116


Total liabilities		9,163,678		14,303,965


Shareholders’ equity
Share capital		10,800,000		10,800,000
Capital surplus		512,024		493,922
Specific reserve		48,398		1,265
Surplus reserve		4,173,831		4,173,831
Undistributed profits		3,347,309		1,101,605

Total equity attributable to equity shareholders of the Company		18,881,562		16,570,623

Minority interests		291,008		271,395

Total shareholders’ equity		19,172,570		16,842,018


Total liabilities and shareholders’ equity		28,336,248		31,145,983

COMPANY BALANCE SHEETS

AS AT 30 SEPTEMBER 2015

Unit: RMB’000


Items	30 September 2015		31 December 2014
	(unaudited)		(audited)
Current assets
Cash at bank and on hand		401,405		186,348
Notes receivable		1,392,736		991,722
Accounts receivable		995,330		856,198
Advances to suppliers		51,635		12,546
Dividends receivable		—		19,372
Other receivables		25,069		16,468
Inventories		3,985,127		5,465,293
Other current assets		41,118		85,458


Total current assets		6,892,420		7,633,405


Non-current assets
Long-term equity investments		4,479,355		4,201,476
Investment properties		405,919		412,647
Fixed assets		14,068,589		15,221,418
Construction in progress		648,318		542,878
Intangible assets		351,273		360,510
Long-term prepaid expenses		408,397		587,349
Deferred tax assets		293,063		905,186


Total non-current assets		20,654,914		22,231,464


Total assets		27,547,334		29,864,869

COMPANY BALANCE SHEETS (CONTINUED)

AS AT 30 SEPTEMBER 2015

Unit: RMB’000


Items	30 September 2015		31 December 2014
	(unaudited)		(audited)
Current liabilities
Short-term borrowings		2,977,484		4,507,195
Notes payable		54,000		—
Accounts payable		2,116,236		4,736,516
Advance from customers		661,410		503,124
Employee benefits payable		99,010		38,849
Taxes payable		1,180,834		1,239,268
Interest payable		3,973		9,486
Dividends payable		19,300		19,406
Other payables		1,076,727		606,113
Current portion of non-current liabilities		500,000		—


Total current liabilities		8,688,974		11,659,957


Non-current liabilities
Long-term borrowings		—		1,611,900
Deferred revenue		178,936		186,436


Total non-current liabilities		178,936		1,798,336


Total liabilities		8,867,910		13,458,293


Shareholders’ equity
Share capital		10,800,000		10,800,000
Capital surplus		512,024		493,922
Specific reserve		44,921		—
Surplus reserve		4,173,831		4,173,831
Undistributed profits		3,148,648		938,823


Total shareholders’ equity		18,679,424		16,406,576


Total liabilities and shareholders’ equity		27,547,334		29,864,869

4.2

CONSOLIDATED INCOME STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2015 (Unaudited)

Unit: RMB’000


	Nine months ended 30 September
Items	2015		2014
Revenue		61,557,902		76,718,822
Less: Cost of sales		46,009,615		67,485,251
Taxes and surcharges		10,290,714		6,720,066
Selling and distribution expenses		375,943		425,524
General and administrative expenses		2,129,601		1,937,285
Financial expenses - net		245,837		355,419
Asset impairment losses		86,909		22,889
Add: Investment income (“-” to indicate loss)		499,849		-24,304
Including: Share of profits of associates and jointly controlled entities (“-” to indicate loss)		462,695		-30,730
Operating profit (“-” to indicate loss)		2,919,132		-251,916
Add: Non-operating income		43,254		156,095
Including: Profits on disposal of non-current assets		1,538		8,279
Less: Non-operating expenses		46,111		61,871
Including: Losses on disposal of non-current assets		13,557		28,880

Total profit (“-” to indicate total loss)		2,916,275		-157,692

Less: Income tax expenses		640,499		-12,215
Net profit (“-” to indicate net loss)		2,275,776		-145,477
Attributable to equity shareholders of the Company (“-” to indicate net loss)		2,245,704		-152,106
Minority interests		30,072		6,629
Earnings per share
Basic earnings per share (“-” to indicate loss) (RMB)	RMB	0.208	RMB	-0.014
Diluted earnings per share (“-” to indicate loss) (RMB)	RMB	0.208	RMB	-0.014
Other comprehensive income		—		—

Total comprehensive income (“-” to indicate loss)		2,275,776		-145,477

Attributable to equity shareholders of the Company (“-” to indicate loss)		2,245,704		-152,106
Minority interests		30,072		6,629

COMPANY INCOME STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2015 (Unaudited)

Unit: RMB’000


	Nine months ended 30 September
Items	2015		2014
Revenue		49,604,555		64,439,504
Less: Cost of sales		34,311,704		55,427,125
Taxes and surcharges		10,283,558		6,714,926
Selling and distribution expenses		287,247		322,537
General and administrative expenses		2,021,048		1,829,153
Financial expenses - net		261,379		330,160
Asset impairment losses		88,604		38,315
Add: Investment income (“-” to indicate loss)		477,766		-37,618
Including: Share of profits of associates and jointly controlled entities (“-” to indicate loss)		433,879		-45,697
Operating profit (“-” to indicate loss)		2,828,781		-260,330
Add: Non-operating income		39,228		154,765
Including: Profits on disposal of non-current assets		1,363		8,279
Less: Non-operating expenses		46,061		61,844
Including: Losses on disposal of non-current assets		13,516		28,862

Total profit (“-” to indicate total loss)		2,821,948		-167,409

Less: Income tax expenses		612,123		-19,550
Net profit (“-” to indicate net loss)		2,209,825		-147,859
Other comprehensive income		—		—

Total comprehensive income (“-” to indicate loss)		2,209,825		-147,859

CONSOLIDATED INCOME STATEMENTS

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2015 (Unaudited)

Unit: RMB’000


	Three months ended 30 September
Items	2015		2014
Revenue		19,405,452		25,344,545
Less: Cost of sales		14,775,751		22,467,555
Taxes and surcharges		3,229,776		2,065,844
Selling and distribution expenses		114,362		151,617
General and administrative expenses		639,381		712,865
Financial expenses - net		105,300		76,076
Asset impairment losses		25,498		46
Add: Investment income		161,065		41,412
Including: Share of profits of associates and jointly controlled entities		130,842		34,986
Operating profit (“-” to indicate loss)		676,449		-88,046
Add: Non-operating income		24,846		130,740
Including: Profits on disposal of non-current assets		552		3,059
Less: Non-operating expenses		25,166		31,625
Including: Losses on disposal of non-current assets		4,644		15,455

Total profit		676,129		11,069

Less: Income tax expenses		148,813		-5,359
Net profit		527,316		16,428
Attributable to equity shareholders of the Company		514,538		12,805
Minority interests		12,778		3,623
Earnings per share
Basic earnings per share (RMB)	RMB	0.048	RMB	0.001
Diluted earnings per share (RMB)	RMB	0.048	RMB	0.001
Other comprehensive income		—		—

Total comprehensive income		527,316		16,428

Attributable to equity shareholders of the Company		514,538		12,805
Minority interests		12,778		3,623

COMPANY INCOME STATEMENTS

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2015 (Unaudited)

Unit: RMB’000


	Three months ended 30 September
Items	2015		2014
Revenue		15,330,208		20,758,829
Less: Cost of sales		10,786,131		17,956,846
Taxes and surcharges		3,226,903		2,064,023
Selling and distribution expenses		88,323		114,470
General and administrative expenses		604,164		676,229
Financial expenses - net		111,015		74,846
Asset impairment losses		23,003		2
Add: Investment income		151,990		29,013
Including: Share of profits of associates and jointly controlled entities		121,767		29,013
Operating profit (“-” to indicate loss)		642,659		-98,574
Add: Non-operating income		22,147		130,044
Including: Profits on disposal of non-current assets		486		3,059
Less: Non-operating expenses		25,153		31,610
Including: Losses on disposal of non-current assets		4,637		15,440

Total profit (“-” to indicate total loss)		639,653		-140

Less: Income tax expenses		134,775		-5,292
Net profit		504,878		5,152
Other comprehensive income		—		—

Total comprehensive income		504,878		5,152

4.3

CONSOLIDATED CASH FLOW STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2015 (Unaudited)

Unit: RMB’000


	Nine months ended 30 September
Items	2015		2014
Cash flows from operating activities
Cash received from sales of goods or rendering of services		69,523,781		90,370,477
Refund of taxes and surcharges		39,831		29,424
Cash received relating to other operating activities		20,976		149,524

Sub-total of cash inflows		69,584,588		90,549,425

Cash paid for goods and services		50,704,016		78,305,280
Cash paid to and on behalf of employees		1,852,371		1,787,484
Payments of taxes and surcharges		13,248,306		8,296,904
Cash paid relating to other operating activities		391,210		449,120

Sub-total of cash outflows		66,195,903		88,838,788


Net cash flows generated from operating activities		3,388,685		1,710,637

Cash flows from investing activities
Cash received from entrusted lendings		42,000		42,000
Cash received from returns on investments		199,736		78,225
Net cash received from disposal of fixed assets		5,922		11,331
Net cash received from disposal of an associate		—		13,058
Cash received relating to other investing activities		36,405		52,563

Sub-total of cash inflows		284,063		197,177

Cash paid to acquire fixed assets, intangible assets and other long-term assets		480,134		617,834
Cash payment of entrusted lendings		66,000		50,000
Investment in an associate		—		11,541

Sub-total of cash outflows		546,134		679,375


Net cash flows used in investing activities		-262,071		-482,198

CONSOLIDATED CASH FLOW STATEMENTS (CONTINUED)

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014 (Unaudited)

Unit: RMB’000


	Nine months ended 30 September
Items	2015		2014
Cash flows from financing activities
Cash received from borrowings		27,587,758		39,638,640

Sub-total of cash inflows		27,587,758		39,638,640

Cash repayments of borrowings		30,291,096		39,872,066
Cash paid for distribution of dividends or profits and interest expenses		207,523		846,082

Sub-total of cash outflows		30,498,619		40,718,148


Net cash flows used in financing activities		-2,910,861		-1,079,508

Effect of foreign exchange rate changes on cash and cash equivalents		-430		104

Net increase in cash and cash equivalents		215,323		149,035
Add: Cash and cash equivalents at beginning of the period		279,198		133,256

Cash and cash equivalents at end of the period		494,521		282,291

COMPANY CASH FLOW STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2015 (Unaudited)

Unit: RMB’000


	Nine months ended 30 September
Items	2015		2014
Cash flows from operating activities
Cash received from sales of goods or rendering of services		56,364,217		76,200,590
Refund of taxes and surcharges		6,848		492
Cash received relating to other operating activities		17,125		147,063

Sub-total of cash inflows		56,388,190		76,348,145

Cash paid for goods and services		37,873,725		64,339,378
Cash paid to and on behalf of employees		1,733,048		1,667,324
Payments of taxes and surcharges		13,159,072		8,241,914
Cash paid relating to other operating activities		248,717		736,278

Sub-total of cash outflows		53,014,562		74,984,894


Net cash flows generated from operating activities		3,373,628		1,363,251

Cash flows from investing activities
Cash received from returns on investments		182,105		53,308
Net cash received from disposal of fixed assets		5,577		11,283
Cash received relating to other investing activities		23,738		48,078

Sub-total of cash inflows		211,420		112,669

Cash paid to acquire fixed assets, intangible assets and other long-term assets		474,702		612,643
Investment in an associate		—		11,541

Sub-total of cash outflows		474,702		624,184


Net cash flows used in investing activities		-263,282		-511,515

COMPANY CASH FLOW STATEMENTS (CONTINUED)

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2015 (Unaudited)

Unit: RMB’000


	Nine months ended 30 September
Items	2015		2014
Cash flows from financing activities
Cash received from borrowings		27,973,788		39,985,640

Sub-total of cash inflows		27,973,788		39,985,640

Cash repayments of borrowings		30,669,076		39,852,046
Cash paid for distribution of dividends or profits and interest expenses		200,007		839,468

Sub-total of cash outflows		30,869,083		40,691,514


Net cash flows used in financing activities		-2,895,295		-705,874

Effect of foreign exchange rate changes on cash and cash equivalents		6		8

Net increase in cash and cash equivalents		215,057		145,870
Add: Cash and cash equivalents at beginning of the period		186,348		78,448

Cash and cash equivalents at end of the period		401,405		224,318

By Order of the Board

Wang Zhiqing

Chairman

Shanghai, the PRC, 22 October 2015

As at the date of this announcement, the executive directors of the Company are Wang Zhiqing, Wu Haijun, Gao Jinping, Ye Guohua, Jin Qiang and Guo Xiaojun; the non-executive directors of the Company are Lei Dianwu and Mo Zhenglin; and the independent non-executive directors of the Company are Cai Tingji, Zhang Yimin, Liu Yunhong and Du Weifeng.

SINOPEC SHANGHAI PETROCHEMICAL COMPANY LIMITED

Date: October 23, 2015

/s/ Wang Zhiqing

Wang Zhiqing