"Reciprocal exchanges"? Sinopec transferred 1.77% of its shares to CNPC

On November 10, Sinopec announced that Sinopec Group would transfer its shares of about 1.
77% of the total share capital to CNPC without compensation
.
After the transfer, CNPC will directly hold about 1.
79% of Sinopec's shares
.
This transfer will not lead to a change
in the controlling shareholders or actual controllers of the company.

On November 10, 2022, China Petroleum & Chemical Corporation ("Sinopec"), the Company's controlling shareholder, received a notice from Sinopec Corporation ("Sinopec"), that in order to deepen the strategic cooperation between Sinopec and China National Petroleum Corporation ("CNPC") and optimize the Company's shareholding structure, Sinopec and CNPC signed a gratuitous transfer agreement on November 10, 2022, which is intended to be transferred by the State-owned Assets Supervision and Administration Commission of the State Council (hereinafter referred to as "CNPC") State-owned Assets Supervision and Administration Commission of the State Council") approved the transfer of 2,137,060,000 A shares (approximately 1.
77% of the total share capital of the company, calculated from the total share capital on the announcement date, the same below) held by Sinopec Group to China National Petroleum Group (hereinafter referred to as "transfer" or "this transfer")
through the transfer of state-owned shares without compensation.

Before the transfer, Sinopec Group directly held 82,709,227,393 A shares of the company, accounting for about 68.
35% of the company's total share capital; CNPC directly holds 28,689,530 A shares of the Company, representing approximately 0.
02%
of the total share capital of the Company.

After this transfer, Sinopec Group will directly hold 80,572,167,393 A shares of the company, accounting for about 66.
58% of the company's total share capital; CNPC will directly hold 2,165,749,530 A shares of the company, representing approximately 1.
79%
of the company's total share capital.
This transfer will not result in a change
in the controlling shareholders or actual controllers of the company.

It is reported that as early as September 6, CNPC planned to transfer about 1.
83 billion A shares (accounting for 1% of the company's total share capital) to Sinopec Group through gratuitous transfer
.
On October 28, the transfer of state-owned shares without compensation was approved by the State-owned Assets Supervision and Administration Commission of the State Council
.
After the completion of the gratuitous transfer, CNPC will hold 147,103,617,108 A shares of PetroChina, accounting for 80.
38% of the total share capital of PetroChina.
Sinopec will hold 1,830,210,000 A shares of PetroChina, representing 1%
of the total share capital of PetroChina.

In response to the national strategy of deepening the professional integration of central enterprises, the two oil groups optimized the equity structure of the two companies through gratuitous transfer, laying a solid foundation
for promoting the optimization of the layout and structure of the state-owned economy and promoting high-quality economic development.