Sinopec Shanghai Petrochemical announces share cancellation, capital reduction

Sinopec Shanghai Petrochemical announced the cancellation of 256,668,000 repurchased H shares, reducing its registered capital to RMB 10,542,617,500. This action, approved by shareholders in 2023 and 2024, necessitates notifying creditors, who have 45 days to declare claims or seek guarantees. This move aligns with a broader corporate governance overhaul, including the elimination of the supervisory board, establishment of an audit and compliance management committee to assume supervisory functions, and adjustments to the company's business scope and articles of association, effective by January 1, 2026.

The company's third-quarter report for 2025 indicates a significant increase in net profit attributable to shareholders of 361.67% to RMB 30,595, primarily due to higher gross profits from petrochemical products. However, cash flow from operating activities decreased by -81.28% to RMB 1,887,979 due to reduced cash received from product sales and services. The company's engagement in ongoing related-party transactions for product supply, sales, and financial services, facilitated through Sinopec Finance Company, are structured to ensure fair pricing and are not expected to impact the company's independence.