Dear Shareholders and Friends:

In 2023, the global economy recovered slowly, geopolitical tensions intensified, macro-environment became increasingly unstable and uncertain, and international oil prices fluctuated widely. In domestic China, the economy regained steam, refined oil products demand gradually picked up, new energy developed rapidly, chemical industry faced supply glut and the petroleum and chemical industry changed profoundly. In the face of complicated operating environment and fierce market competition, the Company stepped up efforts to promote high-quality development, drove all-round improvement in production and operations management, and proceeded with the customer-centric strategy. As a result, we achieved promising operating results with new progress and new developments made in various aspects of work.

In accordance with IFRS Accounting Standards, the Company realized revenues from primary business and other operating revenues of RMB3.2 trillion. The profit attributable to shareholders of the Company amounted to RMB58.3 billion. The Company retained a stable financial position and saw substantial increase in operating cash flow. Taking into account the Company's profitability, shareholders' returns and sustainable development, the board of directors proposed a final cash dividend of RMB0.2 per share (tax inclusive). Together with the interim cash dividend of RMB0.145 per share (tax inclusive) already paid, the total dividend for the year amounted to RMB0.345 per share (tax inclusive), and the total distribution ratio for 2023 reaches 75% including share repurchase.

Remarkable enhancement of corporate governance. The board of directors insisted on scientific decision-making, dynamically optimized the development plan, and strengthened the strategic management of ESG. While exercising performing their responsibilities diligently and with due care, the independent directors thoroughly conducted in-depth research on the enterprises and communicated extensively with shareholders. They played an effective role in decision-making, supervision and independence and the provision of professional consultancy. With an aim to enhance the quality, the Company beefed up efforts to deepen corporate reform. Our internal control and risk management mechanisms were constantly improved. Meanwhile, we continued to implement the share repurchase with a view to safeguarding the Company's market value and shareholders' interests. In recognition of our strict adherence to high quality information disclosure practice and investor relations management, the Company has been rated grade-A for information disclosure by the SSE for ten consecutive years.

Effective improvement in quality and reasonable growth of quantity in each business segment. As for the upstream business, we reinforced our resource base with major breakthroughs in a number of oil and gas explorations. Our efforts to boost reserves and output, reduce costs and enhance profitability bore fruitful results. While the natural gas production, supply, storage and marketing system was further improved, the value-creation capability of entire industrial chain substantially increased. We insisted on the integrated operation in refining and marketing businesses, strengthened orientation of market needs and profitability, dynamic coordinated the resource allocation, and enhanced cost reduction and efficiency improvement. The strategy of adjusting the yield of refined oil products, chemical feedstocks and refining specialities was carried out in a scientific manner. As we vigorously drove market expansion, boosted sales and improved profitability, the refinery throughput and domestic sales volume of refined oil products hit a record high and non-fuel business maintained brisk growth. At the same time, we strengthened the collaborative development of chemicals and refining businesses, whereby improving our profitability, adjusting the utilization rate, strengthening cost management and expanding external sales. As a result, the overall sales volume of chemical products steadily increased.

Technological innovation to enhance development quality and drive business transformation and upgrading. With increased emphasis on technological innovation, we enhanced R&D efforts and strengthened cutting-edge basic research. Persistent efforts were made in oil and gas exploration and the development of high-end new materials. Major breakthroughs were achieved in a number of core technologies with the quality of our patents ranked best among the top in domestic market. We accelerated the transformation and upgrade of refining and chemical business, and completed the transformation of certain refining projects to chemical projects and the upgrading of some ethylene projects. Moreover, our transformation towards an integrated energy service provider of "petrol, gas, hydrogen, power and services" progressed in an orderly manner. The three-year plan for charging network development was kicked off with an aim to vigorously promote battery charging and swapping operation. We created a roadmap for the development of hydrogen energy business with primary focus on hydrogen transportation and green hydrogen for refining and chemical. Meanwhile, the power generated from wind and solar energy steadily grew and breakthroughs were made in the industrialization of the CCUS project, hence reinforcing our competitive edges in green and low-carbon development.

Commitment to fulfill the corporate social responsibilities. The Company was actively responding to global climate change and made relentless efforts to promote the development of clean energy. While the action plan for carbon peak went ahead smoothly, we took measures to protect the ecosystem and ensure biodiversity. We stepped up efforts to enhance safety management and intrinsic safety standards. In addition, we supported rural revitalization, participated in domestic emergency and disaster relief programs and the charitable projects such as "Spring Bud Gas Station for Girls" and "Classes Given by Academicians", which received favourable response in the society. We cared about the staff's physical and mental health and create stable and harmonious community relationships in our domestic and overseas projects operate.

The eighth session of the board of directors (the "Board") and the supervisory committee (the "Supervisory Committee") of the Company will complete their terms this year. The past three years were extremely extraordinary and challenging for Sinopec Corp. Faced with a severe and complex external environment and unexpected adversity, the Board steadfastly pursued the new development philosophy, launched the action plan to drive high-quality development, and played the advantages of integrated value chain to the full. Besides, we continued to promote the business layout with "One Foundation of energy and resources, Two Wings of clean fuels and advanced chemicals, and Three Growth Engines in new energy, new materials and new economy". The management led the entire staff to overcome difficulties and made every effort to strengthen development quality, enhance profitability and stabilize growth. While new progress and achievements were made in all aspects of work, our operating performance remained stable amid volatile market conditions. All operating costs continued to decline, and the Company retained a stable financial position and delivered promising returns to shareholders.

Enhanced high-quality development as defining feature of the Company's over past three years. We continued to push ahead with the seven-year action plan to reinforce the resource base, leading to continual growth in our oil and gas reserves and output. Besides, our efforts to boost reserves, stabilize oil output, ramp up gas output and reduce costs achieved remarkable results. By accelerating the development of world-class refining and chemicals centers, we increased capacity with competitive edges. At the same time, the strategy of shifting refined oil products to chemical feedstocks and refining specialties progressed steadily with the capacity of our refining and polyolefin capacity ranked first in the world. In addition, oil and gas equivalent output and refinery throughput climbed to historic highs, and the high value-added chemical products portion continued growing. As for the marketing business, the advantage of sales network was further enhanced. The number of gas stations ranked second in the world and domestic sales volume of refined oil products achieved a new record. Meanwhile, non-fuel business maintained healthy growth. With an aim to build ourselves into an integrated energy service provider of "petrol, gas, hydrogen, power and services", we pushed for the development of hydrogen energy, battery charging and swapping, renewable power generation, CCUS operations, etc., creating new competence from green development. With an emphasis on the innovation-driven development strategy, we achieved fruitful results in the development of core technologies in a number of key areas, such as exploration and development, refining, new chemical materials, new energy, and green and low carbon sector, laying a solid foundation for the Company's high-quality development.

Continued strengthening of corporate governance effectiveness in past three years. The Board strengthened strategic planning, studied and formulated the development strategy for the "14th Five-Year Plan" period. While maintaining high cash dividend payout ratio, the Board has implemented the share repurchase in both domestic and overseas markets for two consecutive years to safeguard the Company's market value and shareholders' interests. In addition, we improved the fundamental system for corporate governance, enhanced the compliance system, and continuously improved the effectiveness of the internal control system. Our management was enhanced by benchmarking against the world-class standards so as to promote the Company's professional development. As the quality of information disclosure and investor relations practices further improved, our communication with stakeholders became more effective. The delisting of our American depositary shares was completed in an orderly manner. The Company leveraged the advantage of party-building, strengthened the supervisory and protection work, boosted the employees' vitality, and improved their motivation. Our outstanding corporate governance has gained wide recognition in various capital markets.

Significant progress in ESG practice over past three years. The Board bolstered the ESG governance based on strategic height, attached great importance to the guiding principles and strengthened the management effectiveness. We implemented the low carbon development strategy and action plan for carbon peak. While continuously enhancing the HSE management system, the Company conducted specialized work safety rectification, vigorously promoted pollution prevention and contributed our efforts to promote the development of ecological civilization. In the face of major disasters and emergencies, we actively participated in relief operations, made every effort to ensure the supply of energy and materials, and ensured the stable operation of industrial and supply chains. In addition, we supported rural revitalization, contributed efforts to the Winter Olympics and Paralympics in Beijing, and extensively participated in charities. In adherence to the people-oriented approach, we protected the physical and mental health of employees, promoted the harmoniously development of economies, environment and communities of the sites where our domestic and overseas projects located. As our development brought many benefits to the public, the Company's corporate image as a responsible enterprise became more prominent.

The hard-won achievements were attributable to the joint efforts of the Board, the Supervisory Committee, management and all employees. They would not have been gained without the strong support from shareholders and all walks of life in the community. On behalf of the Board, I would like to express my sincere gratitude to all shareholders and all walks of life in the community for their support. I would also express my sincere gratitude to all of directors, supervisors and management for their dedicated work and outstanding contributions!

In 2024, Sinopec Corp. will continue to act on the principle of seeking progress while maintaining stability, promoting stability through progress. We will improve the operation and profitability, transformation and upgrading, reform and innovation, and risk management. In addition, greater emphasis will be put on the value creation and persistent efforts will be carried out to effectively enhance our development quality and ensure the reasonable growth of business volume. By cultivating new quality productivity, we will lay a decisive foundation for the Company to fully complete the goals and tasks for the "14th Five-Year Plan" period.

We will improve development quality, enhance profitability, stabilize growth and emphasis on tackling difficulties and creating value. We will leverage on our integrated advantage, coordinate the whole value chain of procurement, transportation, production, storage and marketing, tap the potential of system optimisation, meet market demand, improve service quality, continue to increasing business scale, thereby maximizing the overall profitability of our industrial chain. We will emphasis on promoting transition and upgrading, and push for the development of new growth drivers. The integrative development oil and gas exploration and development operation and new energy business will be expedited, and greater efforts will be made to boost the exploration and development. We will fuel the growth of natural gas business, expand the utilization of green electricity, and establish and promote the collaborative development of a safe and reliable green energy supply system which is complementary to multi-energy consumption. At the same time, the development of world-class, high-tech and integrated refining and chemical center will be accelerated and the plan for developing strategic emerging businesses such as new materials and bio-technology will be formulated. The Company is determined to become the best hydrogen energy company in China. We will take a multi-scenario approach to the expansion of recharging network, create first-tier directly-operated platform, cultivate diversified service models and add value to the sales network across the board. The digital and intelligent transformation of the industry will be vigorously promoted and the coordinated development of a modern service and trading system incorporating the consumer Internet and the industrial Internet will be carried out. Besides, the ProMACE industrial platform will be further strengthened. We will power the green transformation and craft new competitive edges from green development. While driving all-round improvement in ESG management, the Company will vigorously promote the conservation and efficient utilization of resources. The carbon peak strategy will be steadily implemented, and collaborative efforts will be taken to reduce carbon emissions and pollution, promoting green development and business growth. As enhanced efforts will be made to drive the R&D and applications of green and low carbon technology, we will push for the industrialization and large-scale application of CCUS technology, expand carbon trading and enhance carbon footprint management. In order to contribute our efforts to the ecosystem protection, we will accelerate the implementation of pollution prevention and control projects. Meanwhile, greater efforts will be made to promote technological advancement and innovation-driven development. The integration of innovation chain and industrial chain will be further strengthened to support the transition and upgrading of our businesses and the development of strategic emerging businesses, whereby reinforcing our capability of proprietary innovation and original innovation.

Ambitious players are most likely to win in fierce competition. I believe that Sinopec Corp. is poised to forge our own path for high-quality development under the leadership of new Board members to be elected, with the joint efforts of the management and all employees, and with the strong support from shareholders and all walks of life in the community. We will expedite our development into a world-class enterprise, and thus deliver greater value for shareholders and the society.

Ma Yongsheng

Chairman

Beijing, China

22 March 2024