Dear Shareholders and Friends,

On behalf of the Board, management and entire staff, I would like to express my sincere gratitude to our shareholders and all walks of life in the community for their care and support for Sinopec Corp.

In 2024, the Board sized up the situation and carried out reforms and promoted development under the new development philosophy. The management has overcome difficulties supported by all the employees. As a result, the Company achieved hard-won operating results. Under IFRS Accounting Standards, the Company realized revenue of RMB3.07 trillion, profit attributable to shareholders of the Company of RMB48.94 billion, operating cash flow of RMB149.36 billion, and the debt-to-asset ratio at the end of the period of 53.3%. The Company maintained a stable financial condition with strong risk resistance capacity, fully showing its resilience when facing a complex and severe market environment. With an overall consideration of the profitability, shareholders’ return and sustainable development needs of the Company, the Board proposed a final cash dividend of RMB0.14 per share (tax-inclusive, the same below). Together with the interim cash dividend of RMB0.146 per share, the total annual cash dividend amounted to RMB0.286 per share and the annual total payout ratio reached 75% after aggregating the share repurchase amount.

Over the past year, the Company’s corporate governance became more effective. The 9th session of the Board and the Supervisory Committee were elected and senior management was appointed. The Board implemented “Corporate Value and Return Enhancement Action Plan” and the Dividend Distribution and Return Plan for Shareholders for the Next Three Years, formulated the Company’s market value management policy, and continued the domestic and overseas share repurchases to improve asset quality, operational efficiency, and enterprise value. All independent directors performed their duties with diligence, conducted whole industry chain thematic surveys, proactively participated in decision-making and supervision, and offered valuable suggestions for the reform and development of the Company. Full play was given to the role of party building, which supports and ensures the scientific decision-making procedure of the Board. We further deepened the reform, strengthened the effectiveness of risk prevention and internal control system, and continued to elevate the enterprise management level. Continuing connected transactions for three years from 2025 to 2027 were supported and approved by shareholders, ensuring the stable production and operation of the Company.

Over the past year, the Company’s high-quality development foundation became more solid. For upstream, we vigorously implemented the seven-year action plan, enhanced high-quality exploration efforts on both conventional and unconventional oil and gas, achieved a number of significant breakthroughs and effectively increased oil and gas reserves and production. By improving the synergy of production, supply, storage and marketing, the production and sales volume of the natural gas business steadily increased with the profit of the whole industry chain reaching a record high. We coordinated the refining and marketing businesses to create higher value, and further optimized business system, regional operations and product mix. By actively promoting the low-cost “refined oil products to chemical feedstocks” and high-value “refined oil products to refining specialties” strategy, we increased both volume and profit of featured products including high-end carbon materials and expanded more profitable refinery throughput. Through efforts in expanding markets and increasing sales volume, we achieved growth in high-grade gasoline sales and sustainable development in non-fuel businesses. In chemical segment, we closely followed the market demand, vigorously implemented operations optimization and costs reduction and steadily increased the proportion of high value-added products in synthetic resin, synthetic fibre, synthetic rubber and fine chemicals.

Over the past year, the Company’s high-quality development momentum became more forceful. Adhering to the innovation as a driving force, we made outstanding progress in core technologies in exploration and development of new type oil and gas, refining specialties, and new chemical materials. With digital and intelligent technology empowering industrial development, intelligent operation center 2.0 was put into operation, and an intelligent ethylene factory based on digital twins was built. In addition, taking transition and upgrading as a driving force, we made steady progress in a number of refining and chemical upgrading and facilities revamping projects, such as Zhenhai Refining and Chemical Phase II capacity expansion project and the high-end new materials project. We continued to develop ourselves into a comprehensive energy service provider of “petrol, gas, hydrogen, power and services”. Our domestic market share of automotive LNG business stayed ahead. We have built a total of more than 10,000 EV charging and battery swapping stations and 142 hydrogen refueling stations, and Easy Joy’s service scope was further enriched.

Over the past year, the Company’s high-quality development feature became more distinct. We strengthened ESG governance and disclosure, and achieved good results. Actively responding to global climate change, we steadily advanced the ‘Eight actions for Carbon Peaking’ and energy efficiency benchmarking and upgrading, mapped out detailed medium and long-term carbon emission reduction targets, launched the second phase of the Green Enterprise Action plan, and vigorously promoted pollution prevention and control. Our comprehensive energy consumption per RMB10,000 of production output and emissions of major pollutants continued to decline. Meanwhile, we cared for the physical and mental health of employees and promoted the development of the health-consciousness of the Company. We actively contributed to rural revitalization, continued to carry out public welfare projects such as ‘Lifeline Health Express’ and ‘Drivers’ Home’, and promoted the harmony among economy, environment and social welfare in our project location domestically and abroad, which demonstrated our enterprise social responsibility.

The past achievements laid a good foundation for the sustainable development of the Company. The hard-won achievements were attributable to the hard work and endeavour of the Board, the Supervisory Committee, management and all employees, as well as the long-term strong support of our shareholders and all walks of life in the community. Mr. Cai Hongbin, Mr. Ng, Kar Ling Johnny, Ms. Shi Dan and Mr. Bi Mingjian ceased to be our independent directors after the election of the 9th session of the Board. During their tenure, they performed their duties diligently and played an important role in scientific decision-making, compliance operation and reform and development of the Company. On behalf of the Board, I would like to express my sincere gratitude to all shareholders, all walks of life in the community and independent directors.

2025 is the final year of the “14th Five-Year Plan” and the 25th anniversary of the Company’s listing. Adhering to the complete, accurate and comprehensive implementation of the new development philosophy, Sinopec Corp. will focus on scientific and technological innovation, industrial transition, reform and management, difficulty overcoming and profit improving, risk prevention and other key areas, strive to improve our operation quality and increase business scale reasonably, spare no efforts to protect enterprise value of the Company, promote high-quality development in an all-round way, and lay a solid foundation for a good start of the “15th Five-Year Plan”.

We will take scientific and technological innovation as the engine to support and lead the high-quality development of the industry. By deepening the integration of innovation, industry, capital, and talents, we will accelerate the development of core technologies such as shale oil and deep & ultra-deep stratum oil and gas exploration and development, refining specialties, new energy, high-end new materials, and industrial softwares, promote the synergy among production, sales, research and application, accelerate the iterative development of technology achievements and the process of achieving profits through commercialization of technologies. We will strengthen the leading and driving force of technological innovation. The Company will promote the deep integration of artificial intelligence and the petrochemical industry to empower technological innovation and upgrading in our industry.

We will take strengthening, supplementing and extending industrial chains as key tasks, and accelerate the development of new quality productivity. For upstream, we will continue to consolidate the resource foundation, spare no efforts in achieving the seven-year action plan targets, expand acreage with exploration and development licenses, achieve stable growth of oil and gas, lower the break-even point by taking multiple measures, and therefore lay a solid foundation for the sustainable development of the Company. For refining and chemical, we will focus on improving the profitability of existing assets and investment return of new projects. Through intensive operation, we will reduce basic products cost, improve the featured products’ profitability and reinforce the layout of refining specialties, high-end carbon materials, sustainable fuels, high value-added chemicals, and waste plastics recycling utilization, and make every effort to promote profit and development. As for marketing, we will consolidate our position in the refined oil market and forge the prime brand in LNG fueling business. We will expand the application of hydrogen energy and promote its large-scale utilization in transportation. We will accelerate the growth of power business and extend the industrial chain and value chain, maintain the sustainable development of non-fuel business and develop the Company into a comprehensive energy provider of “petrol, gas, hydrogen, power and services”.

We will take improving quality, reducing cost and increasing profitability as the principal mission, and enhance synergies across the whole industrial chain to drive value creation. We will leverage our advantages of integration, actively respond to market changes, strengthen the cost control, tap the potential, and improve operational quality and profitability. We will adhere to customer-centric principle, innovate marketing strategies, strive to expand market and enhance profitability, to consolidate our market leadership. We will adhere to the market-oriented principle, coordinate the whole chain of procurement, transportation, production, storage and sales, strengthen synergistic and regional optimization of the upstream and downstream of the industrial chain, and improve the competitiveness and profitability of the whole industrial chain.

We will take green transition as the key incentive to create new competitive edge from green development. We will further integrate ESG into our development strategy, coordinate the “Carbon Peak” and ‘Carbon Neutrality’ action, steadily implement the second phase of the Green Enterprise Action plan, promote the conservation and efficient utilization of resources, and take collaborative efforts to cut carbon emissions, reduce pollution, pursue green development and boost business growth. At the same time, we will strengthen the R&D and commercialization of green and low-carbon technologies, promote the industry layout for CCUS, energy conservation and environmental protection, and carbon assets business, and strengthen carbon trading and carbon footprint management. We will accelerate the large-scale layout of green electricity business and improve the operation level of green hydrogen refining and chemical projects. In addition, efforts will be taken to tackle and prevent pollution issues and protect the ecological environment.

Considering our development strategy, market environment, operation, cash flow and other factors, the Company plans to invest RMB164.3 billion of capital expenditure in 2025, mainly in high-quality exploration and development, refining and chemical business transition and upgrading, comprehensive energy service network development, new energy, new materials, environment-friendly projects and other fields.

Among industrial competition in changes unseen in a century, only by leading with innovation and forging ahead with unwavering dedication can we achieve breakthrough and shape the future. In 2025, the Board will lead the management and all employees to reinforce confidence and determination, adhere to the high-end, intelligent and green development. We will coordinate and drive the transition and upgrading of traditional industries, the cultivation and growth of emerging industries, and pioneering the deployment of future industries. The Company will fully promote high-quality development, delivering greater value for shareholders and the society.

Chairman

Beijing, China

21 March 2025