Dear Friends,

On behalf of the Board of Sinopec Corp., I would like to express our sincere gratitude for your continued attention and support!

In the past year, global economic growth slowed down coupled with increasing occurrence of geopolitical conflicts and global climate change became increasingly serious, and carbon neutrality vision accelerated the diversification of global energy structure and low-carbon transition. The Chinese government pursued to the new philosophy of innovative, coordinated, green, open and shared development, drove a comprehensive green and low-carbon transformation of the economy and society, implemented global development initiative, and actively contributed to the harmonious coexistence of man and nature. As an international energy and chemical company and a member of the United Nations Global Compact, Sinopec Corp. adhered to the green and low-carbon development strategy and actively contributed to energy transition and sustainable development of the society.

Over the past year, we comprehensively promoted high-quality development and achieved continuous improvement in ESG management. We made great efforts to implement the green and low-carbon development strategy, improved governance effectiveness, fostered technological innovation, accelerated the pace of green transformation and industrial upgrading and strengthened management of safety and environmental protection, promoting the collaborative development of the enterprise and society.

Improve corporate governance. We revised multiple governance policies to further strengthen the foundation of sound governance. Our directors, supervisors, and senior management diligently fulfilled their duties, and the role of independent directors has been further enhanced. We further  enhanced regulatory compliance, strengthened risk control management and audit supervision, and promoted the formation of a virtuous cycle of anti-corruption, risk prevention, and enterprise reform. We strove to increase shareholders' return and enhance the market value management. Maintaining stable dividend payout ratio, we continued to implement share repurchase both domestically and overseas. We also focused on improving information disclosure quality and strengthening investor relations management to gain the wider recognition in the market.

Move towards high-quality technological innovation. We strove to build a modern industrial system driven by technological innovation, deepen the reform of R&D management system, and continuously improve the integrated innovation model ranging from basic research to industrial transformation. We ranked the top in domestic energy and chemical industry in terms of the number of key national laboratories, and achieved a number of key technological breakthroughs, including the operation of the world's first 3 million tonnes per year heavy oil catalytic cracking unit, the operation of China's first home-grown high-performance liquid rubber industrial facility, as well as breakthroughs in the fields of continental shale oil and gas, aviation lubricants, and hydrogen fuel cell catalysts. Besides, we continued to focus on digitalization and intelligentization, developed more than ten national pilot demonstration projects in artificial intelligence, Industrial Internet Plus, and other areas. Throughout the year, we won a total of seven awards in Natural Resources Technology Award and five China Patent Awards, and maintained our leading position among Chinese enterprises in patent quality.

Implement industrial upgrading and transformation. We continued to intensify oil and gas exploration and development, and accelerated natural gas development, with our annual natural gas production increased by 7.1% year-on-year, reaching a historical high. We guaranteed the supply of      clean oil products with high standards, and accelerated the industrialization of biomass fuel. We enhanced the integrated management of production-sale-research-application of high-end chemical materials, further increased the proportion of high value-added products. Aiming to become China's No.1 hydrogen energy company, we have constructed and operated the largest number of hydrogen refueling stations in the world. We vigorously expanded battery charging and swapping services for EVs and implemented the Three-year Action Plan for the Development of  Charging Networks. More than 3,900 battery charging and swapping stations and 39,600 charging terminals were added throughout the year, further enhancing our supply capacity of new energy for mobility.

Focus on carbon emission reduction, pollution control, and green development. We actively responded to climate change, implemented our carbon peaking action plan in an orderly manner and promoted the construction of carbon neutrality demonstration projects. We strengthened the  management of carbon assets to reduce the carbon trading costs. We deepened the implementation of Energy Efficiency Improvement Plan, and reduced our comprehensive energy consumption per RMB 10,000 of production value by 2.6% year-on-year. We deepened the prevention and control of pollution, and successfully achieved the goals of the first phase of our Green Enterprise Action Plan. Our continued efforts on resource conservation and efficient utilisation yielded promising results, with the comprehensive utilisation rate of industrial solid waste increasing to over 90% and industrial fresh water intake reducing by 1%. We also intensified the ecosystem protection, strictly prevented ecological environment risks, actively participated in ecological protection and restoration, and completed the afforestation and greening tasks of the Sinopec Saihanba Ecological Demonstration Forest Project.

Follow the path of safe development. We continuously optimised our inherent safety management with strictly enforcing safety responsibilities and the construction and effective implementation of a robust HSE management system. We carried out the High-quality Safety Management Action,      focusing on the identification and rectification of safety hazards. We intensified the safety management on both our own operations and the operations of contractors, and continuously enhanced employees' emergency response capabilities with well-planned emergency plans and regular emergency drills. Continuing efforts were carried out to safeguard employees'health by providing first aid equipment, and continuously improving employees' working environment and conditions. Remarkable achievements were made in occupational health performance.

Promote the mutual development of enterprise and society. We insisted on the alignment of our high-quality development with the goal of meeting people's pursuit of better lives, and actively supported rural revitalisation and disaster relief efforts. Our charitable programmes, such as the Spring      Bud Service Station, Classes given by Academician, and Sinopec School Buddy received overwhelming response from the community. We adhered to the people-oriented development concept, respected the dignity and rights of employees, and strove to achieve mutual growth of the employees and the Company. We fully respected and considered the needs of the communities where we operate, strove to build stable and harmonious community relations, and actively fulfilled our corporate citizenship responsibilities.

We dedicate to our commitment. Looking ahead to 2024, Sinopec Corp. will resolutely pursue high-quality development, comprehensively improve ESG management, and accelerate the development into a world-class enterprise. We aspire to work together with our stakeholders to drive sustainable development of the Company; and build a virtuous cycle of coordinated and mutually reinforcing economic, social, and environmental development.

We cherish your valuable suggestions for the Company's sustainable development and look forward to joining hands with you to build a better life and create a brighter future!

Ma Yongsheng

Chairman

March 22, 2024