China Petroleum & Chemical Corporation is an energy and chemical company engaged in oil and gas and chemical operations in Mainland China. It operates through Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others segments. The company explores for and produces crude oil and natural gas, refines and trades petroleum products, and manufactures and sells petrochemicals and derivative products. It also provides crude oil jetty and natural gas pipeline transmission services, and engages in hydrogen energy and other new energy businesses. Incorporated in 2000, it is based in Beijing, China, and operates as a subsidiary of China Petrochemical Corporation.
Sinopec profit rises but fuel demand slump forces overhaul
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Domestic fuel sales fall 9.2% as demand weakens Sinopec's domestic refined oil sales dropped 9.2% in the first half of 2026. Gasoline use fell almost 8% and diesel 12% because of high prices and more electric vehicles. This shrinking demand for its main product pressures the stock.
This is the core demand problem driving the company's need to change and weighing on its shares.
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First-half net profit jumps 19.3%, dividend declared Sinopec reported net profit of 25.63 billion yuan, up 19.3% from a year earlier, beating expectations. It also announced a cash dividend of 1.05 yuan per 10 shares. Higher profit and payout support the stock price.
Profit growth and dividend are direct positive drivers for the share price.
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New specialty PVA plant boosts high-end chemicals Sinopec started a 50,000-ton specialty PVA facility in Chongqing, making it the world's largest single-site high-end PVA base. This expands supply for solar panels, electronics, and drugs, helping shift the company toward higher-value materials.
This shows concrete progress in the strategic move away from shrinking fuel demand.
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Chairman launches overhaul to revive refiner Sinopec's chairman is reorganizing the company into four profit centers and plans to invest over 30 billion yuan a year in new energy and materials. The overhaul aims to offset falling fuel sales and competition, but success is uncertain.
This is the big-picture strategic response to the demand decline, with both promise and risk.
Q3 2026
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Sinopec profit rises but fuel demand slump forces overhaul
▼
Domestic fuel sales fall 9.2% as demand weakens Sinopec's domestic refined oil sales dropped 9.2% in the first half of 2026. Gasoline use fell almost 8% and diesel 12% because of high prices and more electric vehicles. This shrinking demand for its main product pressures the stock.
This is the core demand problem driving the company's need to change and weighing on its shares.
▲
First-half net profit jumps 19.3%, dividend declared Sinopec reported net profit of 25.63 billion yuan, up 19.3% from a year earlier, beating expectations. It also announced a cash dividend of 1.05 yuan per 10 shares. Higher profit and payout support the stock price.
Profit growth and dividend are direct positive drivers for the share price.
▲
New specialty PVA plant boosts high-end chemicals Sinopec started a 50,000-ton specialty PVA facility in Chongqing, making it the world's largest single-site high-end PVA base. This expands supply for solar panels, electronics, and drugs, helping shift the company toward higher-value materials.
This shows concrete progress in the strategic move away from shrinking fuel demand.
◆
Chairman launches overhaul to revive refiner Sinopec's chairman is reorganizing the company into four profit centers and plans to invest over 30 billion yuan a year in new energy and materials. The overhaul aims to offset falling fuel sales and competition, but success is uncertain.
This is the big-picture strategic response to the demand decline, with both promise and risk.
News & notes moving600028.CG
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Energy Transition & Power Demand▼
China EV penetration could reach 80% by 2030, Sinopec researcher says
Researchers at China Petroleum & Chemical Corporation, known as Sinopec, expect China's electric vehicle penetration rate to keep rising and reach 75 to 80 percent by 2030. Wang Fuli, deputy director of the Sinopec Economics and Development Research Institute, told an APEC conference in Singapore that EVs are expected to displace 56 million tons of oil demand in China this year, equivalent to about 1.2 million barrels per day, or nearly 15 percent of the country's total refined petroleum product demand. EV penetration in China was just 5 percent in 2020, but rose to 53 percent last year and reached 65 percent in July. The figures include both battery electric vehicles and plug-in hybrids. According to Wang, nearly all of China's public transport vehicles are now electrified. She cited past government subsidies and the country's extensive charging infrastructure as factors behind the rapid adoption.
600028.CG · Demand · Negative Sinopec's own researchers say EVs will displace ~1.2 million bpd of China's oil demand this year and penetration could hit 75-80% by 2030, eroding the company's core refined petroleum product demand.
Sinopec Forecasts 8.9% Drop in China Oil Demand for 2026
Sinopec, the world's top refiner by capacity, expects China's oil demand to fall 8.9% in 2026 from a year earlier, driven by high oil prices and accelerating electric vehicle adoption. The company's research arm estimates that oil demand in the world's biggest crude importer will drop by 600,000 barrels per day on average this year. Gasoline demand is projected to decline 8.7%, while diesel consumption is expected to crash 11.4%, with jet fuel the only transportation fuel to rise, up 1.3%. The Iran war and resulting high fuel prices have accelerated the shift to EVs, and Sinopec is reallocating capital toward new energy and chemicals as domestic fuel sales hit their lowest in nearly a decade.
Electrification & Mobility › China NEV Leaders ▲Demand
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▲Demand
Energy Transition & Power Demand › Solar ▲Demand
Energy Transition & Power Demand › Energy Storage & Grid Flexibility ▲Demand
Energy Transition & Power Demand › Nuclear Generation & Utilities Demand
600028.CG · Demand · Negative Sinopec forecasts 8.9% drop in China oil demand for 2026 due to high prices and EV adoption, reducing its core fuel sales.
Sinopec and Partners Launch Global CCUS Cooperation Initiative
China Petroleum & Chemical Corporation, known as Sinopec, joined the International CCUS Technology Innovation Cooperation Organization, Kazakhstan's Ministry of Energy, and the Institute of New Materials and Energy Technologies at Nazarbayev University to launch the Initiative for Cooperation on Low-Carbon Energy Development. Announced at the 2026 International CCUS Technology Conference in Astana, the initiative promotes collaboration on CCUS technologies and standards and greater exchange among professionals. Sinopec has built China's first 100-kilometer dense-phase CO2 pipeline and operates the country's first integrated CCUS demonstration project with an annual capacity of one million metric tons. It is also conducting a joint study with Shell, BASF, and China Baowu on China's first open-access CCUS cluster at the 10-million-metric-ton scale, and preparing a one-million-metric-ton demonstration project at Shengli Oilfield. The International CCUS Technology Innovation Cooperation Organization, established in July 2025, has 60 founding members from more than 20 countries and regions.
Carbon Removal (DAC) › Direct Air Capture (DAC) ▲Regulation
600028.CG · Technology · Positive Sinopec launches global CCUS cooperation initiative and operates China's first million-ton integrated CCUS demonstration project.
BAS.XETRA · Technology · Positive BASF is named as a partner in the joint study on China's first open-access 10-million-ton CCUS cluster.
SHEL.LSE · Technology · Positive Shell is named as a partner in the joint study on China's first open-access 10-million-ton CCUS cluster.
China Baowu Steel Group Corporation Ltd. · Technology · Positive China Baowu is named as a partner in the joint study on China's first open-access 10-million-ton CCUS cluster.
Zhongji Innolight repurchases over 300 million yuan on first day; multiple A-share companies disclose buyback progress
Several A-share companies disclosed progress on share buybacks. Among them, Zhongji Innolight repurchased 374,100 shares on the first day after announcing a planned buyback of up to 8 billion yuan, paying a total of 318 million yuan. As of August 31, China Petroleum and Chemical Corporation had cumulatively repurchased 104 million A-shares for a total of 500 million yuan; Jiuzhou Pharmaceutical had repurchased 15.41 million shares for 212 million yuan; MGI Tech had repurchased 2.01 million shares for about 100 million yuan; Double Medical Technology had repurchased 6.21 million shares for 260 million yuan; Jiansheng Group had repurchased 19.25 million shares for 224 million yuan; and Bear Electric Appliance had repurchased 1.95 million shares for 65.95 million yuan.
Sinopec chairman launches overhaul to revive world's largest refiner
Sinopec Chairman Hou Qijun has launched a sweeping overhaul of the world's largest oil refiner as it confronts falling fuel demand, petrochemical overcapacity, and oil-supply disruptions from the Iran war. Appointed a year ago, Hou has reorganized the company into four profit centers covering oil, gas and new energy, refining and chemicals, finance and strategic new business, and global trading with marketing, and he outlined the plan in unusually blunt language in a July SASAC magazine article. Sinopec reported a 19% rise in first-half 2026 net profit on Sunday, but its fuel sales have dropped to 2017 levels and it faces an uphill battle to maintain domestic market share. Hou said at an earnings briefing that half of new cars no longer need fuel, so the company must shift to chemical materials and new energy, and it plans to allocate about 20% of capital spending, or more than 30 billion yuan a year, to new energy and new materials from 2026 to 2030. He also targeted completion of more than 30 projects by 2030, including shale oil, sustainable aviation fuel, and refining cost cuts, while facing fierce competition from Wanhua Chemical and Satellite Chemical in higher-value petrochemicals.
Sinopec first-half profit rises 11.9% to RMB 26.567 billion
China Petroleum & Chemical Corporation reported first-half 2026 profit attributable to shareholders of RMB 26.567 billion, up 11.9% year-on-year, with total revenue rising 2.0% to RMB 1.44 trillion. The company declared an interim cash dividend of RMB 0.105 per share and commenced a new round of share repurchases. Oil and gas output reached approximately 263 million barrels of oil equivalent, up 0.3%, while refinery throughput was 113 million tonnes and total refined oil products sales were 101 million tonnes. The refining segment's operating profit surged 381.5% to RMB 17.0 billion, but the marketing and distribution segment's operating profit fell 28.6% to RMB 5.7 billion, and the chemicals segment narrowed its operating loss to RMB 0.2 billion from RMB 4.2 billion a year earlier.
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Energy Transition & Power Demand▼2impact 4
Oil Declines With US Economic Isolation Plan for Iran in Focus
Oil dropped after two weeks of gains, with the market waiting to see the US economic isolation plan for Iran due to be released later Monday. Brent fell to around $93 a barrel, after adding around 13% over the past two weeks, while West Texas Intermediate was near $86. Treasury Secretary Scott Bessent is set to unveil details of the plan in a press conference, and sought to ratchet up pressure on US allies to join the effort in an interview with CNBC. Oil has rallied more than 50% this year, with the US-Iran war now in its sixth month choking global supplies of crude and refined products. China's top refiner Sinopec said gasoline consumption fell almost 8% and diesel use 12% in the first half of the year because of high prices and increased use of electric vehicles.
BRENT · Supply · Negative Brent fell to around $93 a barrel after two weeks of gains, with supply concerns in focus.
WTI · Supply · Negative Oil prices declined as market awaits US plan on Iran, with supply concerns easing.
600028.CG · Demand · Negative Sinopec reported lower gasoline and diesel consumption due to high prices and EV adoption, indicating weaker demand for its products.
GASOLINE · Supply · Negative Gasoline futures likely impacted by lower demand and oil price decline.
600871.CG · Demand · Negative As a Sinopec affiliate, lower fuel consumption and high prices may reduce demand for oilfield services.
Multiple Shanghai and Shenzhen Listed Companies Disclose Half-Year Reports; China Tungsten and Hightech Net Profit Up 280%
On the evening of August 23, several listed companies on the Shanghai and Shenzhen stock exchanges released announcements. China Tungsten and Hightech disclosed its half-year report, with operating revenue of 16.385 billion yuan in the first half of 2026, up 108.51 percent year on year, and net profit attributable to shareholders of the listed company of 2.076 billion yuan, up 280.53 percent. China Petroleum and Chemical Corporation, or Sinopec, reported total operating revenue of 1.436561 trillion yuan in the first half, up 2 percent, and net profit of 25.627 billion yuan, up 19.3 percent, and plans to distribute a cash dividend of 1.05 yuan per 10 shares. Jiayuan Technology will suspend trading for one day starting August 24 because it received an advance notice of administrative penalty from the China Securities Regulatory Commission, and will resume trading on August 25 with other risk warnings implemented, with its stock abbreviation changed to ST Jiayuan. In addition, Huigu New Materials plans to use 225 million yuan of over-raised funds to invest in the first phase of the Zhuhai Huigu functional materials construction project, with a total estimated investment of 450 million yuan. Huitong Technology won the bid for the fifth section of Xinlun Chemical Fiber's annual production of 300,000 tons of polyester chemical fiber project, with a winning bid price of 366 million yuan.
Sinopec Commissions 50,000-Ton Specialty PVA Facility in Chongqing
Sinopec has commissioned a specialty polyvinyl alcohol resin facility with an annual production capacity of 50,000 metric tons at its subsidiary Chongqing SVW Chemical, bringing the site's total PVA capacity to 210,000 metric tons per year and making it the world's largest single-site production base for high-end PVA. The facility achieved stable operation during initial startup, produced on-spec products, and has already shipped its first batch to Europe. The new capacity will strengthen supply of specialty materials for photovoltaics, electronics, optical films, and pharmaceuticals. The project was completed in 17 months with 1.98 million safe working hours, and a new polymerization process increased production capacity by 40 percent compared with earlier-generation equipment. SVW Chemical now offers more than 100 PVA grades and exports over 70 products to more than 40 countries.
Sinopec Repurchases 87.29 Million A-Shares in Current Round, Paying 414 Million Yuan
Sinopec announced that in July 2026, it repurchased 33.49996 million A-shares through centralized competitive trading, paying 164 million yuan. As of July 31, 2026, the company has cumulatively repurchased 87.29065 million A-shares in the current round, accounting for 0.07% of total share capital, with a total payment of 414 million yuan.
China rushes to buy Russian ESPO crude amid Middle East crisis, discount shrinks to one dollar
Chinese refineries are snapping up Russian ESPO crude faster than usual, amid concerns that the conflict in the Middle East could disrupt oil exports from the Persian Gulf. As a result, ESPO crude for August delivery from the port of Kozmino has already sold out, and several cargoes for September delivery have also been snapped up. The discount for ESPO crude against ICE Brent futures has narrowed to just about one US dollar per barrel, down from three to four dollars per barrel two weeks ago. Emma Li, China market analyst at Vortexa, said that major Chinese oil companies, led by Unipec, the trading arm of Sinopec, have been accelerating purchases of ESPO crude since July, and the unrest in the Middle East has further spurred buying for August and September deliveries. Data from Kpler shows that China's seaborne imports of Russian crude in July are on track to hit the highest level since March, with China importing about 1.4 million barrels per day of Russian crude this month.
Unipec (China International United Petroleum & Chemicals Co., Ltd.) · Demand · Positive Unipec is explicitly named as leading the accelerated purchases of Russian ESPO crude, directly benefiting from increased trading activity.
600028.CG · Demand · Positive Sinopec's trading arm Unipec is accelerating purchases of Russian ESPO crude, boosting demand for China Petroleum & Chemical Corp.
BRENT · Supply · Negative Increased Chinese buying of Russian ESPO crude tightens supply for other buyers, but the discount narrowing suggests relative strength in Brent; however, the article focuses on ESPO discount narrowing, implying Brent may face less discount pressure, but overall demand shift could support Brent prices. Actually, the discount narrowing means ESPO is less cheap relative to Brent, which could be neutral or slightly positive for Brent. But given the context of Middle East crisis and strong Chinese demand, Brent is likely supported. However, the article does not directly impact Brent negatively; it's more about ESPO. So direction ambiguous.
Sinopec's oil and gas output up 0.3% in first half, crude processing down 5.6%
China Petroleum and Chemical Corporation, or Sinopec, saw its oil and gas production rise 0.3 percent year-on-year in the first half of this year, while crude processing volumes fell 5.6 percent. According to data released by the company, oil and gas output reached 235 million barrels of oil equivalent in the January-to-June period, with crude processing at about 4.8 million barrels per day. Natural gas production increased, but crude oil output edged lower. The decline in crude processing reflects sluggish domestic demand and shrinking refining margins.
China shares may extend losses as Shanghai Composite sits below 3,340
China's stock market may open under pressure on Thursday after the Shanghai Composite Index slipped 0.02 percent to 3,339.93, marking its fifth straight session of declines. The Shenzhen Composite Index dipped 0.28 percent to 1,965.45. Among major movers, PetroChina spiked 2.08 percent and Sinopec jumped 1.94 percent, while Huaneng Power tanked 2.69 percent. The soft lead from Wall Street, where the Dow dropped 0.58 percent, and lingering uncertainty over U.S. trade policies are expected to weigh on Asian markets.
Multiple central SOEs disclose shareholding increase and buyback plans; Chalco gets up to 2 billion yuan boost from controlling shareholder
On the morning of July 20, several listed central state-owned enterprises including Chalco, CRRC, and China Coal Energy announced shareholding increase plans by their controlling shareholders, while NARI Technology and Sinopec disclosed buyback plans or progress. Chalco's controlling shareholder Chinalco and its concert parties plan to increase their holdings of the company's A-shares and H-shares by 1 billion to 2 billion yuan, with the number of shares not exceeding 2% of total share capital, over a 12-month period. CRRC's controlling shareholder CRRC Group plans to increase its holdings by 150 million to 300 million yuan within the next six months, with no price range set. China Coal Energy's controlling shareholder China Coal Group plans to increase its holdings by 50 million to 100 million yuan. NARI Technology's chairman proposed a buyback of 500 million to 1 billion yuan worth of shares for equity incentives or registered capital reduction. Sinopec disclosed buyback progress, having repurchased a cumulative 77.9 million A-shares as of July 17, 2026, for a total of 365 million yuan, under a buyback plan totaling 500 million to 1 billion yuan. Several companies have recently reported improving performance. Chalco expects first-half net profit of 11.2 billion to 12.2 billion yuan, up 58% to 73% year-on-year, a record high for the period. China Shenhua Energy expects first-half net profit of 26.3 billion to 29.8 billion yuan, up 6.9% to 21.1% year-on-year.
Naphtha Market to Reach USD 381.58 Billion by 2035
The global naphtha market is projected to grow from USD 235.07 billion in 2025 to USD 381.58 billion by 2035, at a compound annual growth rate of 4.96 percent. Heavy naphtha held the largest revenue share at 61.4 percent in 2025, driven by its high olefin yields in steam crackers, while petrochemicals accounted for 54.7 percent of revenue due to demand for ethylene and propylene. Asia Pacific led the market in 2025, with China representing 44.3 percent of regional revenues, supported by integrated refinery-petrochemical plants from Sinopec, PetroChina, Hengli, and Rongsheng. In 2025, Sinopec started operations at a 1.4 million metric ton per year naphtha-fed steam cracker at Zhenhai Refining & Chemical, the largest single-train addition in China's history. The United States naphtha market was valued at USD 30.83 billion in 2025 and is expected to reach USD 46.87 billion by 2035, while Europe's market is forecast to grow from USD 60.45 billion to USD 98.03 billion over the same period.
Sinopec Receives CSR Award at Sino-European ESG Conference in Germany
China Petroleum & Chemical Corp., or Sinopec, has received the Corporate Social Responsibility Best Practice Award at the 3rd Sino-European Corporate ESG Best Practice Conference in Mainz, Germany, for its case study on carbon footprint management and low-carbon development. The conference jury noted that Sinopec has developed a carbon management framework covering the full product life cycle and aligning with both Chinese and European standards. It highlighted the company's collaboration with German chemical producer BASF to achieve mutual recognition of carbon footprint accounting methodologies as a milestone for greener international supply chain cooperation. Sinopec's efforts span green energy supply, low-carbon technology development, and supply chain carbon assessment, providing a practical example of ESG implementation in the global energy and chemicals sector. A Sinopec representative delivered a keynote speech emphasizing that green and low-carbon development is a shared global objective and that the conference serves as an open platform for Chinese and European companies to strengthen dialogue on ESG and sustainable development.
600028.CG · Regulation · Positive Sinopec receives CSR award for carbon management and low-carbon development, enhancing ESG reputation and regulatory alignment.
BAS.XETRA · Regulation · Positive BASF is highlighted as a collaborator with Sinopec on carbon footprint mutual recognition, supporting its ESG positioning.
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