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 2016

Commission File Number: 1-12158

Sinopec Shanghai Petrochemical Company Limited

(Translation of registrant’s name into English)

No. 48 Jinyi Road, Jinshan District, Shanghai, 200540

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 ☒ 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): ☐

EXHIBITS


Exhibit
Number

99.1		2016 Third Quarterly Report.

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.

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.

LOGO

Sinopec Shanghai Petrochemical Company Limited

LOGO

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

(Stock Code: 00338)

2016 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) and 13.10B 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 the 2016 third 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 fifteenth meeting of the eighth session of the Board for the consideration of the 2016 third quarterly report, and have adopted the 2016 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. Zhang Feng, person-in-charge of Accounting Department and Deputy 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 2016 (the “Reporting Period”) was prepared under the China Accounting Standards for Business Enterprises and is unaudited.

1.5 On 13 January 2016, the National Development and Reform Commission announced the “Notice of the National Development and Reform Commission on Further Improving the Pricing Mechanism of Refined Oil” (Fa Gai Jia Ge [2016] No.64) (the “Notice”), stating that when the price of crude oil in the international market — with which the domestic refined oil price is affiliated — is lower than US$40/barrel, the domestic refined oil price will not be adjusted downward further (the so-called “floor price”). The Notice states that “when the price of crude oil in the international market is lower than US$40/barrel, which is the regulatory lower limit, the amount of refined oil price that has not been adjusted will be put into a risk reserve fund. A dedicated account will be set up which requires the approval of the government before using. The fund will mainly be used for energy conservation, emissions reduction, oil product quality upgrading and oil supply security. Specific management measures will be announced separately.” As at the date of this Report, the specific management measures have not been announced yet, and the Company has not withdrawn any provisions.

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)		30,258,675		28,022,171		7.98
Total equity attributable to equity shareholders of the Company (RMB’000)		22,949,885		19,838,862		15.68

	From the beginning of the year to the end of the Reporting Period (January to September 2016)		From the beginning of the year to the end of the Reporting Period last year (January to September 2015)		Increase/decrease as compared to the corresponding period of the previous year (%)
Net cash flows generated from operating activities (RMB’000)		5,301,471		3,388,685		56.45

	From the beginning of the year to the end of the Reporting Period (January to September 2016)		From the beginning of the year to the end of the Reporting Period last year (January to September 2015)		Increase/decrease as compared to the corresponding period of the previous year (%)
Revenue (RMB’000)		54,584,662		61,557,902		-11.33
Net profit attributable to equity shareholders of the Company (RMB’000)		4,130,061		2,245,704		83.91
Net profit attributable to equity shareholders of the Company excluding non-recurring items (RMB’000)		4,089,900		2,218,532		84.35
Return on net assets (weighted average) (%)		18.832		12.669		Increased by 6.163 percentage points
Basic earnings per share (RMB/share)		0.382		0.208		83. 65
Diluted earnings per share (RMB/share)		0.382		0.208		83.65

Excluding non-recurring items and amount:

Unit: RMB’000


Item	Amount for the Reporting Period (July to September 2016)		Amount for the period from the beginning of the year to the end of the Reporting Period (January to September 2016)
Net losses on disposal of non-current assets		-7,216		-31,193
Employee reduction expenses		-1,204		-5,851
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		107,345		121,625
Income from external entrusted loans		10,002		11,004
Other non-operating income and expenses other than those mentioned above		-23,500		-37,493
Tax effect for the items above		-21,142		-14,289
Effect on minority interests (after tax)		-3,214		-3,642
Total		61,071		40,161

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												126,843
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		0		Nil		—		State-owned enterprise legal person
HKSCC (Nominees) Limited		3,454,879,321		31.99		0		Unknown		—		Foreign legal person
China Securities Finance Corporation Limited		309,106,676		2.86		0		Nil		—		Others
Central Huijin Investment Ltd.		67,655,800		0.63		0		Nil		—		Others
NSSF Four Hundred Fourteen Combination		34,999,808		0.32		0		Nil		—		Others
Guotaijunan Futures Limited — Xinyue No.10 Asset Management Plan		29,700,000		0.28		0		Nil		—		Others
Shanghai Kangli Gong Mao Company		22,325,300		0.21		0		Nil		—		Others
Bank of China Limited — ChinaAMC new economy flexible configured hybrid securities investment fund		19,645,656		0.18		0		Nil		—		Others
NSSF Four Hundred One Combination		18,000,000		0.17		0		Nil		—		Others
NSSF Four Hundred Twelve Combination		16,978,797		0.16		0		Nil				Others


Shareholding of the top ten shareholders of shares without selling restriction
	Number of unrestricted shares in circulation held		Type and number of shares
Name of shareholder	Number of unrestricted shares in circulation held		Type		Number
China Petroleum & Chemical Corporation		5,460,000,000		RMB-denominated ordinary shares		5,460,000,000
HKSCC (Nominees) Limited		3,454,879,321		Overseas listed foreign shares		3,454,879,321
China Securities Finance Corporation Limited		309,106,676		RMB-denominated ordinary shares		309,106,676
Central Huijin Investment Ltd.		67,655,800		RMB-denominated ordinary shares		67,655,800
NSSF Four Hundred Fourteen Combination		34,999,808		RMB-denominated ordinary shares		34,999,808
Guotaijunan Futures Limited — Xinyue No.10 Asset Management Plan		29,700,000		RMB-denominated ordinary shares		29,700,000
Shanghai Kangli Gong Mao Company		22,325,300		RMB-denominated ordinary shares		22,325,300
Bank of China Limited — ChinaAMC new economy flexible configured hybrid securities investment fund		19,645,656		RMB-denominated ordinary shares		19,645,656
NSSF Four Hundred One Combination		18,000,000		RMB-denominated ordinary shares		18,000,000
NSSF Four Hundred Twelve Combination		16,978,797		RMB-denominated ordinary shares		16,978,797
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 2016		As at 31 December 2015		Increase/ decrease amount		Change (%)		Major reason for change
Cash at bank and on hand		3,506,929		1,077,430		2,429,499		225.49	Increase in profit and cash generated from operating activities in the Reporting Period
Short-term borrowings		337,432		2,070,000		-1,732,568		-83.70	Recorded profit in the Reporting Period, resulting in a decrease in capital demand
Advance from customers		919,235		579,887		339,348		58.52	Increase in advance payments received from customers
Taxes payable		886,557		1,368,418		-481,861		-35.21	Decrease in consumption tax
Other payables		881,240		629,080		252,160		40.08	Increase in accrued repair cost
Specific reserve		38,702		953		37,749		3,961.07	Increase in the provisions for accrued safety production costs which was unused
Undistributed profits		7,078,086		4,028,025		3,050,061		75.72	Profit in the Reporting Period

Unit: RMB’000


Item	For the nine-month period ended 30 September				Increase/ decrease amount		Change (%)		Major reason for change
Item	2016		2015		Increase/ decrease amount		Change (%)		Major reason for change
Revenue		54,584,662		61,557,902		-6,973,240		-11.33	Fall in unit price of products
Cost of sales		38,530,849		46,009,615		-7,478,766		-16.25	A fall in the cost of crude oil, leading to the lower cost of raw materials
Taxes and surcharges		8,551,331		10,290,714		-1,739,383		-16.90	An decrease in consumption tax
Financial expenses-net		3,904		245,837		-241,933		-98.41	Fall in interest expenses of borrowings
Operating profit		5,309,117		2,919,132		2,389,985		81.87	A significant fall in the cost of major raw materials, increase in gross profit of products
Total profit		5,362,056		2,916,275		2,445,781		83.87	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		4,130,061		2,245,704		1,884,357		83.91	A significant fall in the cost of major raw materials, increase in gross profit of products
Income tax expenses		1,225,758		640,499		585,259		91.38	Profit in the Reporting period

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

(1) Undertakings about Share Reform Proposal of the Company

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 China Petroleum & Chemical Corporation (“Sinopec Corp.”) has made the following undertakings which is effective until the end of the reporting period:

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 in or transfer such shares through the relevant stock exchanges. Upon the expiration of the aforesaid undertaking, the amount of existing non-circulating shares to be disposed by Sinopec Corp through trading on the stock exchanges shall not exceed 5% of the total amount of shares held by Sinopec Corp. 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 proposal and shall use this as a platform for the development of related businesses in future.

For more details, please refer to The Explanatory Memorandum for the Share Reform Proposal of the Company (the Revised Draft)(Full Version) uploaded to the websites of the Shanghai Stock Exchange, the Hong Kong Stock Exchange and the Company, and published in Shanghai Securities News and China Securities Journal on 20 June 2013. The A-share reform proposal was approved at the relevant A-share shareholder meeting 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 held by non-circulating shares shareholders obtained the right to circulate those shares in the market. For more details on the implementation of A-share reform proposal, please refer to The “Implementation Report on Sinopec Shanghai Petrochemical Company Limited A-share Reform Proposal” published in the issues of Shanghai Securities News and China Securities Journal dated 14 August 2013 and uploaded on the websites of the Shanghai Stock Exchange and the Hong Kong Stock Exchange.

The aforementioned undertaking 1. has expired on 20 August 2016. For more details, please refer to related announcements uploaded to the websites of the Shanghai Stock Exchange, the Hong Kong Stock Exchange and the Company, and the “Announcement on Sinopec Shanghai Petrochemical Company Limited A-share Reform Proposal Listing of Restricted Shares” published in Shanghai Securities News and China Securities Journal on 13 August 2016.

(2) Major shareholders’ undertakings not to reduce stock holdings

On 13 July, 2015, the Company received notice from the controlling shareholder, Sinopec Corp., that for the purposes of supporting the healthy development of the Group and to advance China’s economy and capital market momentum, Sinopec Corp. undertakes that it would not reduce its shareholdings in the Company within 6 months following the announcement. This undertaking expired on 13 January 2016.

With regard to the aforementioned three undertakings, the Company did not notice any conditions that violated the undertakings or any unfulfilled matters during the required period.

4	APPENDIX

4.1 CONSOLIDATED BALANCE SHEETS

AS AT 30 SEPTEMBER 2016


	Unit: RMB’000
Items	As at the end of the Period		As at the beginning of the year
	(unaudited)		(audited)
Current assets
Cash at bank and on hand		3,506,929		1,077,430
Notes receivable		1,116,679		1,007,373
Accounts receivable		1,572,478		1,624,571
Advances to suppliers		97,489		15,131
Interests receivable		38		2,491
Other receivables		52,774		29,050
Inventories		4,798,924		4,178,188
Other current assets		137,667		209,746
Total current assets		11,282,978		8,143,980
Non-current assets
Long-term equity investments		3,543,145		3,471,139
Investment properties		395,405		405,572
Fixed assets		13,298,786		14,424,899
Construction in progress		862,434		722,520
Intangible assets		410,469		423,529
Long-term prepaid expenses		364,032		359,487
Deferred tax assets		101,426		71,045
Total non-current assets		18,975,697		19,878,191
Total assets		30,258,675		28,022,171

CONSOLIDATED BALANCE SHEETS (CONTINUED)

AS AT 30 SEPTEMBER 2016


	Unit: RMB’000
Items	As at the end of the Period		As at the beginning of the year
	(unaudited)		(audited)
Current liabilities
Short-term borrowings		337,432		2,070,000
Notes payable		250,119		—
Accounts payable		3,415,713		3,017,878
Advances from customers		919,235		579,887
Employee benefits payable		168,625		39,999
Taxes payable		886,557		1,368,418
Interest payable		130		1,890
Dividends payable		22,740		19,119
Other payables		881,240		629,080
Total current liabilities		6,881,791		7,726,271
Non-current liabilities
Deferred revenue		152,500		160,000
Total non-current liabilities		152,500		160,000
Total liabilities		7,034,291		7,886,271
Shareholders’ equity
Share capital		10,800,000		10,800,000
Capital surplus		539,837		516,624
Other comprehensive income		—		—
Specific reserve		38,702		953
Surplus reserve		4,493,260		4,493,260
Undistributed profits		7,078,086		4,028,025
Total equity attributable to equity shareholders of the Company		22,949,885		19,838,862
Minority interests		274,499		297,038
Total shareholders’ equity		23,224,384		20,135,900
Total liabilities and shareholders’ equity		30,258,675		28,022,171

COMPANY BALANCE SHEETS

AS AT 30 SEPTEMBER 2016


Unit: RMB’000
Items	As at the end of the Period		As at the beginning of the year
	(unaudited)		(audited)
Current assets
Cash at bank and on hand		2,224,097		942,264
Notes receivable		1,048,324		679,084
Accounts receivable		663,481		1,034,286
Advances to suppliers		84,642		10,377
Dividends receivable		—		2,420
Other receivables		47,425		10,968
Inventories		4,598,026		3,955,550
Other current assets		39,553		86,481
Total current assets		8,705,548		6,721,430
Non-current assets
Long-term equity investments		4,689,864		4,550,126
Investment properties		392,568		402,581
Fixed assets		13,044,878		14,080,657
Construction in progress		861,059		722,520
Intangible assets		338,956		348,193
Long-term prepaid expenses		351,938		345,978
Deferred tax assets		91,164		62,867
Total non-current assets		19,770,427		20,512,922
Total assets		28,475,975		27,234,352

COMPANY BALANCE SHEETS (CONTINUED)

AS AT 30 SEPTEMBER 2016


Unit: RMB’000
Items	As at the end of the Period		As at the beginning of the year
	(unaudited)		(audited)
Current liabilities
Short-term borrowings		392,000		2,499,000
Notes payable		126,000		—
Accounts payable		2,444,991		2,275,922
Advance from customers		697,329		446,318
Employee benefits payable		156,438		34,264
Taxes payable		854,317		1,330,067
Interest payable		122		2,370
Dividends payable		20,473		19,119
Other payables		777,427		843,724
Total current liabilities		5,469,097		7,450,784
Non-current liabilities
Deferred revenue		152,500		160,000
Total non-current liabilities		152,500		160,000
Total liabilities		5,621,597		7,610,784
Shareholders’ equity
Share capital		10,800,000		10,800,000
Capital surplus		539,837		516,624
Other comprehensive income		—		—
Specific reserve		35,537		—
Surplus reserve		4,493,260		4,493,260
Undistributed profits		6,985,744		3,813,684
Total shareholders’ equity		22,854,378		19,623,568
Total liabilities and shareholders’ equity		28,475,975		27,234,352

4.2 CONSOLIDATED INCOME STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016 (Unaudited)

Unit: RMB’000


	Nine months ended 30 September
Items	2016		2015
Revenue		54,584,662		61,557,902
Less: Cost of sales		38,530,849		46,009,615
Taxes and surcharges		8,551,331		10,290,714
Selling and distribution expenses		354,298		375,943
General and administrative expenses		2,198,849		2,129,601
Financial expenses - net		3,904		245,837
Asset impairment losses		259,370		86,909
Add: Investment income		623,056		499,849
Including: Share of profits of associates and jointly controlled entities		623,056		462,695
Operating profit		5,309,117		2,919,132
Add: Non-operating income		125,368		43,254
Including: Profits on disposal of non-current assets		3,022		1,538
Less: Non-operating expenses		72,429		46,111
Including: Losses on disposal of non-current assets		34,216		13,557
Total profit		5,362,056		2,916,275
Less: Income tax expenses		1,225,758		640,499
Net profit		4,136,298		2,275,776
Attributable to equity shareholders of the Company		4,130,061		2,245,704
Minority interests		6,237		30,072
Other comprehensive income		—		—
Total comprehensive income		4,136,298		2,275,776
Attributable to equity shareholders of the Company		4,130,061		2,245,704
Minority interests		6,237		30,072
Earnings per share
Basic earnings per share (RMB)		0.382		0.208
Diluted earnings per share (RMB)		0.382		0.208

COMPANY INCOME STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016 (Unaudited)

Unit: RMB’000


	Nine months ended 30 September
Items	2016		2015
Revenue		39,391,021		49,604,555
Less: Cost of sales		23,530,504		34,311,704
Taxes and surcharges		8,547,903		10,283,558
Selling and distribution expenses		277,634		287,247
General and administrative expenses		2,085,972		2,021,048
Financial expenses - net		4,810		261,379
Asset impairment losses		219,306		88,604
Add: Investment income		687,625		477,766
Including: Share of profits of associates and jointly controlled entities		640,892		433,879
Operating profit		5,412,517		2,828,781
Add: Non-operating income		122,267		39,228
Including: Profits on disposal of non-current assets		2,230		1,363
Less: Non-operating expenses		71,883		46,061
Including: Losses on disposal of non-current assets		33,814		13,516
Total profit		5,462,901		2,821,948
Less: Income tax expenses		1,210,841		612,123
Net profit		4,252,060		2,209,825
Other comprehensive income		—		—
Total comprehensive income		4,252,060		2,209,825

CONSOLIDATED INCOME STATEMENTS

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2016 (Unaudited)

Unit: RMB’000


	Three months ended 30 September
Items	2016		2015
Revenue		17,591,471		19,405,452
Less: Cost of sales		13,353,221		14,775,751
Taxes and surcharges		2,365,169		3,229,776
Selling and distribution expenses		118,626		114,362
General and administrative expenses		654,056		639,381
Financial expenses - net		1,921		105,300
Asset impairment losses		109,366		25,498
Add: Investment income		246,311		161,065
Including: Share of profits of associates and jointly controlled entities		246,311		130,842
Operating profit		1,235,423		676,449
Add: Non-operating income		108,004		24,846
Including: Profits on disposal of non-current assets		474		552
Less: Non-operating expenses		31,375		25,166
Including: Losses on disposal of non-current assets		7,691		4,644
Total profit		1,312,052		676,129
Less: Income tax expenses		277,517		148,813
Net profit		1,034,535		527,316
Attributable to equity shareholders of the Company		1,033,386		514,538
Minority interests		1,149		12,778
Other comprehensive income		—		—
Total comprehensive income		1,034,535		527,316
Attributable to equity shareholders of the Company		1,033,386		514,538
Minority interests		1,149		12,778
Earnings per share
Basic earnings per share (RMB)		0.096		0.048
Diluted earnings per share (RMB)		0.096		0.048

COMPANY INCOME STATEMENTS

FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2016 (Unaudited)

Unit: RMB’000


	Three months ended 30 September
Items	2016		2015
Revenue		12,195,462		15,330,208
Less: Cost of sales		8,013,676		10,786,131
Taxes and surcharges		2,364,869		3,226,903
Selling and distribution expenses		92,700		88,323
General and administrative expenses		617,630		604,164
Financial expenses - net		-549		111,015
Asset impairment losses		79,366		23,003
Add: Investment income		290,214		151,990
Including: Share of profits of associates and jointly controlled entities		243,481		121,767
Operating profit		1,317,984		642,659
Add: Non-operating income		106,274		22,147
Including: Profits on disposal of non-current assets		336		486
Less: Non-operating expenses		30,956		25,153
Including: Losses on disposal of non-current assets		7,416		4,637
Total profit		1,393,302		639,653
Less: Income tax expenses		275,351		134,775
Net profit		1,117,951		504,878
Other comprehensive income		—		—
Total comprehensive income		1,117,951		504,878

4.3 CONSOLIDATED CASH FLOW STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016 (Unaudited)


	Unit: RMB’000
	Nine months ended 30 September
Items	2016		2015
Cash flows from operating activities
Cash received from sales of goods or rendering of services		61,971,130		69,523,781
Refund of taxes and surcharges		128,052		39,831
Cash received relating to other operating activities		11,805		20,976
Sub-total of cash inflows		62,110,987		69,584,588
Cash paid for goods and services		41,620,052		50,704,016
Cash paid to and on behalf of employees		1,744,058		1,852,371
Payments of taxes and surcharges		13,013,041		13,248,306
Cash paid relating to other operating activities		432,365		391,210
Sub-total of cash outflows		56,809,516		66,195,903
Net cash flows generated from operating activities		5,301,471		3,388,685
Cash flows from investing activities
Cash received from entrusted lendings		66,000		42,000
Cash received from returns on investments		557,312		199,736
Net cash received from disposal of fixed assets		-4,679		5,922
Cash received relating to other investing activities		60,476		36,405
Sub-total of cash inflows		679,109		284,063
Cash paid to acquire fixed assets, intangible assets and other long-term assets		642,541		480,134
Cash payment of entrusted lendings		48,000		66,000
Sub-total of cash outflows		690,541		546,134
Net cash flows used in investing activities		-11,432		-262,071

CONSOLIDATED CASH FLOW STATEMENTS (CONTINUED)

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016 (Unaudited)


	Unit: RMB’000
	Nine months ended 30 September
Items	2016		2015
Cash flows from financing activities
Cash received from borrowings		2,087,432		27,587,758
Sub-total of cash inflows		2,087,432		27,587,758
Cash repayments of borrowings		3,820,000		30,291,096
Cash paid for distribution of dividends or profits and interest expenses		1,124,473		207,523
Sub-total of cash outflows		4,944,473		30,498,619
Net cash flows used in financing activities		-2,857,041		-2,910,861
Effect of foreign exchange rate changes on cash and cash equivalents		-3,499		-430
Net increase in cash and cash equivalents		2,429,499		215,323
Add: Cash and cash equivalents at beginning of the period		1,077,430		279,198
Cash and cash equivalents at end of the period		3,506,929		494,521

COMPANY CASH FLOW STATEMENTS

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016 (Unaudited)


	Unit: RMB’000
	Nine months ended 30 September
Items	2016		2015
Cash flows from operating activities
Cash received from sales of goods or rendering of services		45,131,420		56,364,217
Refund of taxes and surcharges		102,887		6,848
Cash received relating to other operating activities		9,650		17,125
Sub-total of cash inflows		45,243,957		56,388,190
Cash paid for goods and services		25,397,519		37,873,725
Cash paid to and on behalf of employees		1,623,062		1,733,048
Payments of taxes and surcharges		12,933,155		13,159,072
Cash paid relating to other operating activities		727,942		248,717
Sub-total of cash outflows		40,681,678		53,014,562
Net cash flows generated from operating activities		4,562,279		3,373,628
Cash flows from investing activities
Cash received from returns on investments		554,150		182,105
Net cash received from disposal of fixed assets		-5,505		5,577
Cash received relating to other investing activities		40,646		23,738
Sub-total of cash inflows		589,291		211,420
Cash paid to acquire fixed assets, intangible assets and other long-term assets		640,638		474,702
Sub-total of cash outflows		640,638		474,702
Net cash flows used in investing activities		-51,347		-263,282

COMPANY CASH FLOW STATEMENTS (CONTINUED)

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2016 (Unaudited)


	Unit: RMB’000
	Nine months ended 30 September
Items	2016		2015
Cash flows from financing activities
Cash received from borrowings		2,512,000		27,973,788
Sub-total of cash inflows		2,512,000		27,973,788
Cash repayments of borrowings		4,619,000		30,669,076
Cash paid for distribution of dividends or profits and interest expenses		1,122,099		200,007
Sub-total of cash outflows		5,741,099		30,869,083
Net cash flows used in financing activities		-3,229,099		-2,895,295
Effect of foreign exchange rate changes on cash and cash equivalents		—		6
Net increase in cash and cash equivalents		1,281,833		215,057
Add: Cash and cash equivalents at beginning of the period		942,264		186,348
Cash and cash equivalents at end of the period		2,224,097		401,405

By Order of the Board

Sinopec Shanghai Petrochemical Company Limited

Wang Zhiqing

Chairman

Shanghai, the PRC, 27 October 2016

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 27, 2016

/s/ Wang Zhiqing

Wang Zhiqing