Introduction
When China Petroleum & Chemical Corporation (Sinopec) is mentioned, most people immediately think of its gas stations. Nevertheless, the group’s business scope stretches far beyond fuel retail. It processes 250 million tons of crude oil and produces 13.47 million tons of ethylene annually, operates over 30,000 gas stations, and conducts business across more than 90 countries and regions. This article analyzes this Fortune Global 500 No.6 energy and petrochemical conglomerate with detailed operational statistics and business breakdowns.
Sinopec’s history dates back to 1983, when the State Council established China Petrochemical Corporation to coordinate national petrochemical production, construction, import and export businesses. In July 1998, the central government restructured the original corporation into Sinopec Group, marking the geographic split between Sinopec and PetroChina: PetroChina took charge of oil and gas fields in northern and northwest China, while Sinopec acquired refineries in eastern and southern China.
Registered capital stands at RMB 326.5 billion, with SASAC holding 100% equity stake. It ranked 6th in the 2025 Fortune Global 500 list.
Public perception of Sinopec is limited to fuel refueling, yet its business is divided into four major segments, each ranking among industry leaders globally.
This segment forms Sinopec’s core profit source, with a gross profit margin of 16.91%. In 2024, its oil and gas equivalent output reached 515 million barrels (approximately 70 million metric tons), including domestic crude oil output of roughly 35 million metric tons and natural gas output of 39.6 billion cubic meters. Construction of national demonstration zones for ultra-deep shale gas in the Sichuan Basin and Jiyang shale oil in Shengli Oilfield has been advanced efficiently.
Sinopec boasts the world’s No.1 crude oil refining capacity. In 2024, it processed 252 million tons of crude oil and produced 153 million tons of refined oil products. However, the refining segment only posted a gross profit of RMB 304 per ton, corresponding to a gross profit margin of merely 0.37%, operating nearly at break-even point. The full-year operating income hit RMB 6.7 billion, a year-on-year decrease of RMB 13.9 billion.
Volatile international crude oil prices, shrinking cracking spread of jet fuel, and higher crude import costs driven by exchange rate fluctuations. Despite massive throughput, the refining business generates minimal profit and functions largely as a throughput service.
Sinopec runs 30,987 branded gas stations nationwide. In 2024, total refined oil sales volume reached 239 million tons, including 183 million tons sold domestically. The segment recorded a gross profit margin of only 1.01% and operating income of RMB 18.6 billion.
Non-fuel businesses deliver remarkable performance: convenience store services under Easy Joy contributed gross profit of RMB 11.1 billion; charging service fees reached RMB 430 million (up 20 times year-on-year), with total charging volume hitting 1.8 billion kWh (up 21 times year-on-year). Its marine bunkering business ranks second globally.
Sinopec ranks first in China and second globally in ethylene capacity. In 2024, ethylene output hit 13.47 million tons, synthetic resin output 20.09 million tons, and synthetic rubber output 1.43 million tons. Total chemical product sales volume reached 83.45 million tons, with export volume rising 13.1% year-on-year.
Nevertheless, the chemical segment posted an operating loss of RMB 10 billion in 2024, with a gross profit margin of -2.55%. The downturn stemmed from continuous new capacity rollout across the domestic industry and sharply narrowed gross margins, alongside industry-wide price competition despite record-high PX production volume.
By the end of 2024, Sinopec Group owned 39 major wholly-owned and holding subsidiaries, covering the entire industrial chain ranging from upstream oilfields and midstream engineering construction to downstream sales and financial services.
Shengli Petroleum Administration, Zhongyuan Petroleum Exploration Bureau, Henan Petroleum Exploration Bureau, Jianghan Petroleum Administration, Jiangsu Petroleum Exploration Bureau, Xinxing Petroleum, Northwest Petroleum Bureau, North China Petroleum Bureau, East China Petroleum Bureau, Southwest Petroleum Bureau, Northeast Petroleum Bureau, Shanghai Offshore Petroleum Bureau
Sinopec Oilfield Service (600871), Sinopec Engineering (02386), Sinopec Machinery (000852), Petroleum Engineering Technology Research Institute
Unipec (one of the world’s largest petroleum trading firms), Sinopec International Petroleum Exploration and Production Corporation (globalized procurement)
Asset management, pipeline storage & transportation, shared services, Economics & Technology Research Institute, Executive Leadership Academy, newspapers and publishing houses
Sinopec Corp. (600028 / 00386) is the Group’s flagship listed vehicle, with Sinopec Group holding a 69.12% stake and registered capital of RMB 121.3 billion. This single listed subsidiary contributes the majority of the Group’s total revenue and profit.
Sinopec Group controls four core listed companies with segmented business positioning:
While Sinopec does not hold full financial licenses including banking, trust and insurance like its peer PetroChina, it has built a robust financial ecosystem:
Total bank credit line approved for the consolidated group totals RMB 2.1 trillion, among which RMB 0.5 trillion has been utilized, leaving RMB 1.6 trillion unused. Such strong financing capacity ranks among the top tier for domestic central SOEs.
Sinopec’s overseas business scale exceeds common perceptions.
Unipec maintains long-term cooperation with over 1,500 counterparties in more than 90 countries, standing among the world’s largest oil traders. Sinopec International has formed strategic partnerships with more than 80 domestic and overseas core suppliers.
8 overseas representative offices established in Hong Kong, Vietnam, Singapore, the Middle East, North America, South Korea, Russia and Taiwan region.
Sinopec maintains substantial R&D investment. It employs 6,802 full-time R&D personnel, over 81% of whom hold master’s or doctoral degrees. In 2024, the group filed 9,666 domestic and overseas patents and was granted 5,550 patents.
8.1 Profitability Trend (Past Three Years)
Key observation: Revenue declined for three consecutive years, alongside a net profit drop in 2024. With RMB 3.14 trillion revenue translating to merely RMB 82.5 billion net profit and a 2.6% net margin, its profitability is lower than many manufacturing enterprises.
The 52.1% debt ratio sits at a moderate level among large central SOEs.
Sinopec does not officially disclose exact employee headcount. Based on financial indicators, cash paid to employees reached RMB 154.27 billion in 2024. With estimated per capita annual compensation of RMB 250,000–300,000, total staff ranges from 510,000 to 620,000; mainstream public statistics cite approximately 520,000 employees.
Senior management boasts high academic credentials: Chairman Hou Qijun holds a doctorate and senior engineer title; President Zhao Dong is a senior accountant with a doctoral degree; Deputy General Manager Niu Shuanwen is a senior engineer and PhD holder. Among 9 directors, 5 independent external directors are assigned from China Guoxin Holdings, State Grid, CNOOC, China Energy Investment and China National Building Material Group.
Per RMB 154.27 billion employee cash expenditure across 520,000 staff, annual cash income per capita averages RMB 297,000. Including social insurance and housing fund contributions, actual total labor cost per capita stands at RMB 200,000–250,000 per year, ranking moderately high among central SOEs.
10. Key Upcoming Investment Projects
Sinopec rolled out its core "One Base, Two Wings, Three New Growth Drivers" strategy:
