Dear Friends,

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

Sinopec Corp. fully and faithfully applies the new development philosophy on all fronts, firmly follows the path of green and low-carbon development and actively contributes to the sustainable development of society. In the past year, we comprehensively promoted high-quality development, continuously strengthened ESG governance and disclosure, and made concrete progresses in corporate governance, green and low-carbon development, technological innovation, transition and upgrading, safety management, and social responsibility, further solidifying the foundation for sustainable development of the Company.

New improvements in corporate governance capabilities. We optimised corporate governance structure, successfully completed the re-election of the Board of Directors and the Board of Supervisors, and further strengthened the roles of Board committees and independent directors to ensure sound decision-making. We enhanced our internal control and risk management systems, fostering a virtuous cycle of anti-corruption, risk prevention, and enterprise reform. We implemented the Corporate Value and Return Enhancement Action Plan, and the Dividend Distribution and Return Plan for Shareholders for the Next Three Years (2024-2026), formulated the market value management regulation, and performed market value management by laws and regulations to safeguard corporate value and shareholder rights. We deepened research on material ESG issues and improved ESG management and disclosure.

New accomplishments along the path of green development. We actively responded to climate change and set the goal of peaking carbon emissions before 2030, limiting the increase to no more than 30% compared to 2020 levels, reducing carbon emissions by over 25% from peak levels by 2040, and striving to achieve carbon neutrality around 2050. We conducted comprehensive review of our environmental protection efforts, addressed inadequacies and shore up points of weakness. We initiated Phase Two of the Green Enterprise Campaign, and promoted concerted efforts to cut carbon emissions, reduce pollution, enhance efficiency, expand green development, resulting in the recovery of a total of 2.1 million tonnes of carbon dioxide and 956 million cubic metres of methane throughout the year. We accelerated the construction of the product carbon footprint management system and participated in the initiation of the Carbon Footprint Alliance for the Energy and Chemical Industrial Chain. Additionally, we continued to implement resource conservation and efficient utilization initiatives, reducing energy consumption by 790,000 tonnes of standard coal, achieving a steady decrease in wastewater COD discharges and sulphur dioxide emissions, and attaining a solid waste proper disposal rate of 100%.

New achievements in technological innovation. We vigorously promoted the integrated development of sci-tech innovation with industrial innovation, deepened the reform of the R&D system and mechanisms, established state-level research institutions in the energy sector, and achieved new results. In upstream, we made significant breakthroughs in the theories and technologies related to deep and ultra-deep shale gas exploration. Profitable production were obtained by applying shale oil development technologies in Jiyang and North Jiangsu basins. In refining, the implementation of catalysts and technologies for producing light aromatic (BTX) products through light cycle oil (LCO) hydrocracking and aromatic extraction represented a substantial advancement in the development of refined oil products to chemical feedstocks. Additionally, several specialty oil products, including animal vaccine white oil and ultra-high voltage transformer oil, achieved batch production. In chemical, we put into operation the world's first cyclohexene esterification and hydrogenation unit for producing cyclohexanone, and carried forward ultra-high molecular weight polyethylene, linear alpha-olefin (LAO) and other key technologies into industrial application. The world's first intelligent ethylene factory based on digital twin technology came into operation. In 2024, we filed a total of 9,666 patent applications both in China and globally, with 5,550 patents granted.

New advancements in industrial upgrading and transformation. We accelerated the pace of industrial upgrading and transformation in pursuit of high-end, more intelligent, and green development. We consistently intensified our oil and gas exploration and development, achieved strategic breakthroughs in the exploration of ultra-deep Cambrian shale gas in the Sichuan Basin, expedited the construction of the Jiyang National Shale Oil Demonstration Area in Shengli Oilfield, and attained record profits across the entire natural gas industrial chain. Efforts were made to carry forward low-cost “refined oil products to chemical feedstocks” and high-value “refined oil products to refining specialties” strategy and high-end carbon materials and other specialty refining products achieved an increase in volumes and profits. We completed the construction of Zhenhai high-end new materials project and accelerated the development of Maoming refining upgrading and ethylene quality improvement project. Furthermore, we advanced the transition to a comprehensive energy service provider encompassing “oil, gas, hydrogen, electricity, and services,” steadily rolling out green hydrogen projects, with 142 hydrogen refuelling stations completed, including the first hydrogen refuelling station outside Mainland China. We intensified the development of the battery recharging network, with nearly 100,000 charging terminals established, continuously enhancing the new energy supply capacity for mobility.

New developments in safety management. We continuously optimised the structure and operation of HSE management system to implement more professional approaches including implementing safety responsibility system for all employees, deepening the Year of Safety Management campaign, strengthening the management and control of major risks, intensifying the investigation and remediation of safety hazards, reinforcing safety management for contractors and construction operations, and tightening safety supervision for hazardous materials transportation as well as the prevention of seasonal natural disaster risks. As a result, our overall safety performance has remained stable. We continuously strengthened our health management capabilities, improving the working environment, enhancing the prevention and control of occupational diseases at their sources, and promoting the establishment of “Healthy Enterprises” to comprehensively safeguard the occupational, physical, and health of our employees.

New contributions towards fulfilling our social responsibilities. We are committed to closely integrating high-quality development with addressing the people's needs for a better life. We continued to support rural revitalisation following our characteristic assistance model of “empowering development with education assistance, driving industrial development with consumption assistance, and powering rural revitalisation with industrial assistance”, and carried out our brand public welfare programmes, such as the “Sinopec Lifeline Express”, “Warm Stations”, “Driver's Home”, and “Spring Bud Service Station”. We facilitated the mutual growth of enterprise and employees adhering to the people-oriented development concept, and further strengthened the communication with our stakeholders to build stable and harmonious community relations.

Looking ahead to 2025, Sinopec Corp. will resolutely follow the path of high-quality development and comprehensively improve ESG management.

We aim to collaborate with our stakeholders to promote more sustainable development of the enterprise, thereby fostering a virtuous cycle of coordinated and mutually reinforcing economic, social, and environmental progress.

We greatly value your insightful suggestions for our sustainable development and eagerly anticipate collaborating with all of you to foster a better quality of life and create a brighter future!

Chairman

March 21, 2025