Continuous risk assessment report on related party transactions between China Petroleum & Chemical Corporation(600028) and finance company and Shengjun company
In 2021, China Petroleum & Chemical Corporation(600028) (hereinafter referred to as " China Petroleum & Chemical Corporation(600028) " or "company") and China Petroleum & Chemical Corporation(600028) Finance Co., Ltd. (hereinafter referred to as "finance company") and China Petroleum & Chemical Corporation(600028) Shengjun International Investment Co., Ltd. (hereinafter referred to as "Shengjun company") Handled deposit, loan, credit and other financial businesses through the finance company and the financial platform of Shengjun company on the principle of free access, Relevant businesses have been included in the continuous related party transactions between the company and Petrochina Company Limited(601857) Chemical Group Co., Ltd. (hereinafter referred to as " China Petroleum & Chemical Corporation(600028) group company").
1、 Overall fund revenue and expenditure during the reporting period
In 2021, the net cash from operating activities of the company was 225.2 billion yuan, an increase of 56.7 billion yuan year-on-year; The net outflow of cash used in investment activities was 145.2 billion yuan, an increase of 42.5 billion yuan year-on-year; The net cash outflow from financing activities was 57.9 billion yuan, an increase of 20.4 billion yuan year-on-year; Cash and cash equivalents at the end of 2021 were 108.6 billion yuan.
2、 Loans in the reporting period
(I) deposit business. At the end of 2021, the company's monetary capital balance was 221989 billion yuan, including 61.682 billion yuan deposited in finance company and Shengjun company, accounting for 27.79%; The balance of external banks was 160307 billion yuan, accounting for 72.21%. According to the relevant provisions of the internal control system, the company has assessed the capital risks deposited in the finance company and Shengjun company, and believes that in the process of daily operation, the deposits deposited by the company in the finance company and Shengjun company are mainly used to ensure liquidity, can be withdrawn in full, and the deposit proportion is reasonable. The deposit agreement amount of connected transactions approved by the board of directors and the general meeting of shareholders and reported to the stock exchange of Hong Kong is the maximum daily deposit of RMB 80 billion, and the daily deposit balance of the company in 2021 is controlled within the standard. The company has no foreign investment and financial management. The deposit business of the company in the finance company and Shengjun company has not affected the normal production and operation arrangement of the company. (II) loan business. At the end of 2021, the balance of interest paid debt of the company was 130115 billion yuan, including 16.563 billion yuan of finance company and Shengjun company, accounting for 12.73%; External banks amounted to 113552 billion yuan, accounting for 87.27%. The loans granted by the finance company and Shengjun company to the company are mainly used to ensure the capital needs of daily operation and project construction. The loan interest rate is not higher than the loan interest rate of the same kind of major commercial banks in the same period, and the loan proportion is reasonable. (III) credit business or other financial business. The bank acceptance bill, letter of guarantee, letter of credit, loan and other businesses of the company and its holding subsidiaries under the credit lines of finance company and Shengjun company are controlled through annual plan, monthly budget or approval one by one. During the reporting period, the finance company and Shengjun company provided China Petroleum & Chemical Corporation(600028) with domestic and foreign capital settlement services, commercial bills, letters of guarantee, letters of credit and other businesses. Generally, the rate standard is not higher than that of similar businesses of major commercial banks.
3、 Risk control and evaluation
To standardize the connected transactions between the 60028's controlsystem and risk disposal plan, It provides a guarantee for the company to prevent capital risks and ensure that the deposits deposited in the financial company are at the disposal of China Petroleum & Chemical Corporation(600028) independently. At the same time, China Petroleum & Chemical Corporation(600028) group company, as the controlling shareholder of the finance company, promises to increase the capital of the finance company according to the actual needs of solving the payment difficulties in case of emergency of the finance company.
In order to regulate the related party transactions between China Petroleum & Chemical Corporation(600028) and Shengjun company ( China Petroleum & Chemical Corporation(600028) overseas settlement center), Shengjun company ensures the security of China Petroleum & Chemical Corporation(600028) deposits in Shengjun company by strengthening internal risk control and obtaining multiple supports from China Petroleum & Chemical Corporation(600028) group company China Petroleum & Chemical Corporation(600028) group company has formulated the internal control system, the detailed rules for the implementation of the measures for the management of overseas funds and the Interim Measures for the supervision and management of overseas fund platforms, which impose strict constraints on the overseas financial services provided by Shengjun company to various enterprises in terms of system; Shengjun company has formulated the detailed rules for the implementation of internal control system to ensure the standardization and safety of enterprise deposit business; At the same time, China Petroleum & Chemical Corporation(600028) group company, as the wholly-owned controller of Shengjun company, signed the maintenance agreement with Shengjun company in 2013. China Petroleum & Chemical Corporation(600028) group company promised to ensure the debt payment demand of Shengjun company through various ways in case of emergency of payment difficulties.
During the reporting period, the finance company and Shengjun company strengthened internal control and risk management to ensure the standardization of China Petroleum & Chemical Corporation(600028) related party transactions and the safety of funds; The deposit limit shall be strictly implemented according to the deposit limit approved by the general meeting of shareholders; The company's deposits in the finance company and Shengjun company can be fully withdrawn and used.
To sum up, according to the company's understanding and evaluation of risk management, in 2021, no abnormality was found in the related deposit and loan business between the company and the finance company and Shengjun company, no major defect was found in the risk management of the finance company and Shengjun company, and no situation that could lead to major risks of the company was found. The company's capital in the finance company and Shengjun company is independent and safe, there is no risk of occupation, complies with relevant regulatory regulations, and there is no damage to the rights and interests of the company and shareholders.
Schedule
Statistics of China Petroleum & Chemical Corporation(600028) related party transactions with finance company and Shengjun company
1. Deposit business of finance company and Shengjun company
Unit: RMB million
Daily current amount
Maximum deposit interest rate range of related parties opening balance total deposit total withdrawal balance closing balance relationship deposit amount (note) (note) limit
China
petrifaction
group
Current account of Zhongshi company: 0.35%-
1.725% of financial public shareholding; Regular 239539385 948015708 division 51%, public affairs 1.35% - 7.4%
China division and
Petrochemical Shengjun
Holding company
49% total
China does not exceed
Petrochemical 800 current: 0%-
Shengjungong group 100 million yuan 0.25%;
Company term: 2946419780017680045974 100% 0.08% - 1.23%
Holding
enterprise
Note 1: under normal circumstances, the deposit interest rate of China Petroleum & Chemical Corporation(600028) in the finance company and Shengjun company is not lower than the deposit interest rate of similar commercial banks in the same period.
Note 2: the amount incurred in the current period is time deposit.
2. Loan business of finance company and Shengjun company
Unit: RMB million
Opening balance of related party loan amount of current period ending balance of related party relationship loan limit rate range total loan amount total repayment amount (note) (note)
China
petrifaction
Shengjun group 0.56%-
Company 1279204.25% 66141512331546483199 100%
Holding
enterprise
China
petrifaction
group
company
Financial company holds 133641.08% - 1042832305 2936913364 51%, 5.23%
China
petrifaction
Shareholding
49%
Note: under normal circumstances, the loan interest rate of China Petroleum & Chemical Corporation(600028) in the finance company and Shengjun company is not higher than that of similar commercial banks in the same period.
3. Credit business or other financial business of finance company and Shengjun company
Unit: RMB million
Actual amount of closing balance of related party business type
China Petroleum & Chemical Corporation(600028) group publicly issued acceptance bills 949423590 finance company holds 51% and China bill discount / 7194 Petrochemical holds 49%
Note: the actual amount is the newly issued bills and discount amount of the whole year.
