China Petroleum & Chemical Corporation 1H 200 4 Results Announcement

1. China Petroleum & Chemical Corporation1H 2004 Results Announcement 30 August 2004 Hong Kong

2. Disclaimer This presentation and the presentation materials distributed herewith include forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Sinopec Corp. expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-looking statements. Sinopec Corp.'s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, exploration and development outcomes, estimates of proven reserves, market shares, competition, environmental risks, changes in legal, financial and regulatory frameworks, international economic and financial market conditions, political risks, project delay, project approval, cost estimates and other risks and factors beyond our control. In addition, Sinopec Corp. makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

3. Agenda • Performance Highlights • 1H 2004 Performance Review • 2H 2004 Business Prospects

4. Performance Highlights

5. Profit Kept Growing - Asset Structure Further Optimized EBIT Analysis Unit: RMB million Corporate & Others Impairment Losses on Fixed Assets Employee Reduction Expenses Chemicals Profit Growth Marketing Profit Growth Refining Profit Growth E&P Profit Growth 1H2003 1H2004 Profit growth in business segments = EBIT of 1H2004 excluding impairment losses of fixed assets and employee reduction expenses – EBIT of 1H2003 Note: Data shown in this presentation includes that of Maoming Ethylene, Xi’an Petrochemical and Tahe Petrochemical which were acquired in 2H 2003.

6. Profit Kept Growing - Leveraging Integrated Business EBIT Contribution by Segment (RMB million） 1H 04 1H 03 Change (%) Unit: RMB million Turnover and Other Operating Revenues 275,442 205,335 34.14 EBITDA 31,516 33.62 42,112 EBIT 18,569 47.23 27,339 Net Profit 16,151 10,727 50.56 0.19 0.12 50.56 EPS (RMB)

7. Financial Highlights 1H 04 FY 03 Change (%) Unit: RMB million Short-term Debt 37,340 29,079 28.41 Long-term Debt 49,977 43,660 14.47 Shareholders’ Fund 178,409 167,899 6.26 Debt / Total Capital 248bps 26.56% 24.08% EBITDA Interest Coverage 21.2x 17.2x 4.0x 1H 04 Unit: RMB million Cash flow from Operating Activities 19,291 Cash flow from Investing Activities -30,659 Cash flow from Financing Activities 10,421 Cash & Cash Equivalent - Ending Balance 14,273

8. Returns and Dividend ROCE Improvement Dividend RMB Yuan

9. As a Result of Good Market Environment • Oil prices remained high and volatile • Refining margin improved and chemical businesses entered into upturn cycle • Macro economic control measures by the Chinese government have achieved good results; Chinese economy has maintained stable growth momentum • Domestic demand for petroleum and chemical products increased steadily • Refined oil products consumption increased by 24.6％ yoy • Chemical products (ethylene equivalent) consumption increased by 15.59％ yoy Good market environment for Company’s earnings growth

10. As a Result of Continuous Delivery of Corporate Strategies • Operation volumes expanded as demand grew • E & P: improved reserve profile and increased production capacity, maintained modest growth in crude and gas production • Refining and Chemicals: increased capacity and efficiency, improved product quality • Marketing: enhanced marketing network and improved marketing structure • Continued to rationalize asset structure • Reduced cost and headcounts to improve efficiency • Improved corporate governance

11. Visions • Corporate reform governs business activities to achieve effective growth • Continue to pursue a strategy founded on “resource and market expansion; cost reduction and prudent investment” • Continue to rationalize assets portfolio • Enhance internal control procedures Realize Sustainable Effective Growth

12. 1H 2004 Performance Review

13. E & P – Oil and Gas Production Continued to Grow 1H 04 1H 03 Change (%) 115.80 7.43 Newly Added Proved Oil Reserves (mm bbls) 124.40 276.80 215.30 Newly Added Proved Gas Reserves (bcf) 872.74 3,887 -0.82 Period-end Proved Oil & Gas Reserves (mm boe) 3,855 133.72 1.59 Crude Oil Production (mm bbls) 135.85 90.71 10.31 Natural Gas Production (bcf) 100.06 6.26 0.32 Lifting Cost (USD/bbl) 6.28

14. E&P – Segment Performance EBIT of E&P Segment Crude Oil and Natural Gas Realized Price Natural Gas USD/mcf RMB million Crude Oil USD/bbl

15. Refining – Increased Throughput to Meet Market Demand 1H 04 1H 03 Change (%) 18.79 64.98 54.70 Crude Oil Processed (mm tonnes) 25.85 13.39 10.64 - Sour Crude Oil Processed (mm tonnes) 827 bps 83.30 91.57 Refining Utilization Rate (%) 10.25 11.41 11.42 Gasoline Production (mm tonnes) 19.89 24.28 24.72 Diesel Production (mm tonnes) 2.45 23.67 3.03 Kerosene Production (mm tonnes) 8.23 8.38 8.92 Chemical Feedstock Production (mm tonnes) 73.97 74.06 Light Stream Yield (%) 9 bps 3 bps 93.07 93.10 Refining Yield (%)

16. Refining — Segment Performance Refining Margin / Cash Operating Cost EBIT of Refining Segment USD/bbl RMB million

17. Marketing — Optimized Marketing Network, Expanded Retail and Distribution 1H 04 1H 03 Change (%) Domestic Sales of Refined Oil Products (mm tonnes) 45.49 35.24 29.09 Incl. Retail (mm tonnes) 25.12 17.83 40.89 Distribution (mm tonnes) 9.56 6.92 38.15 Wholesale (mm tonnes) 10.81 3.05 10.49 Owned or Operated Gas Stations 24,128 25,306 4.88 Franchised Gas Stations 5,376 5,297 1.49 Annual Average Throughput Per Station (tonnes/station) 1,986 1,612 23.20 Marketing Cash Operating Cost (RMB/tonne) 153.4 163.2 -6.00

18. Marketing – Segment Performance RON #90 Gasoline Guidance Price EBIT of Marketing Segment RMB/Tonne RMB million #0 Diesel Guidance Price RMB/Tonne

19. Chemicals — Fully Loaded to Meet Market Demand 1H 04 1H 03 Change (%) Unit: 1,000 tonnes 1,724 8.06 Ethylene 1,863 2,529 10.95 Synthetic Resins 2,806 55.43% 168 bps Ratio of Performance Compound 57.11% 598 7.19 Synthetic Fibers 641 40.26% Ratio of Differential Fibers 45.11% 485 bps 2,133 14.53 Monomers & Polymers for Synthetic Fibers 2,443 261 13.79 Synthetic Rubbers 297 147.46 -2.57 Ethylene Cash Operating Costs (USD/tonne) 143.67

20. Chemicals – Segment Performance Chemicals Price Spreads (1990 - Jul. 2004) EBIT of Chemicals Segment RMB million USD/tonne

21. Cost Reduction • Optimized resource allocation and logistics to reduce transportation costs • Further increased sour crude throughput to reduce crude oil procurement costs • Optimized operation of facilities to reduce energy and material consumption Cost Reduction in 1H 2004 was RMB1.43 bn RMB million In addition, headcount reduction in 1H 2004 was about 8,000

22. Capital Expenditure 1H 2004 Capex: RMB25.82 bn • E & P –10.07 bn, improved reserve profile and increased production capacity of oil and gas • Refining – 4.10 bn, Ningbo-Shanghai-Nanjing pipeline was put into operation, and a number of revamping projects are progressing smoothly • Chemicals – 2.94 bn, revamping of Qilu ethylene expected to complete in 2H 2004 • Marketing – 8.61 bn, smooth progress in south-west pipeline, good results from construction and acquisition of petrol stations 1H 2004 Capex Breakdown In addition RMB3.37 bn invested in Secco and other JV projects

23. 2H 2004 Business Prospects

24. Market Environment in 2H 2004 • Global economy expected to keep its recovery momentum • Global oil demand continue to grow • Refining margin is to remain at relatively good level, and chemical businesses continue upturn cycle • Chinese economic growth expected to maintain relative fast pace, resulting in increasing demand for petroleum and chemical products

25. E & P • Pursue expand resource strategy and speed up exploration and development • Accelerate construction of production capacities • Enhance production management to reduce cost

26. Refining • Optimize resources and reduce crude oil procurement cost • Optimize crude oil transportation to reduce cost • Adjust product mix according to market demand • Implement reform of marketing system for products other than gasoline, diesel and jet fuel

27. Marketing • Accelerate expansion of marketing network for refined oil products • Promote reform of marketing system for refined oil products • Improve quality of service and increase sales volume

28. Chemicals • Maintain a stable full-load operation at major facilities and ensure smooth progress of revamping projects • Optimize allocation of raw material and resources • Increase production of high value-added products • Continue reform of marketing system for chemical products

29. Seize Market Opportunities to Accelerate Development 2004 Capex 2004 Capex Plan Adjustment RMB billion • E&P-Added 1.24 bn to construct natural gas and oil pipelines • Refining – Added RMB1.68 bn to speed up revamping of a number of projects • Chemicals – Added RMB1.15 bn to revamp petrochemical facilities • Marketing – Added RMB1.95 bn to acquire, construct and revamp petrol stations and terminals, speed up construction of south-west pipeline 56.3 50.2

30. Conclusion • Adhere to key operating guidance featuring “reform, rationalization, innovation and development” • Seize market opportunities and adopt flexible operating tactics to increase production volumes Maintain Sound Operating Results

31. For Further Information http://www.sinopec.com.cn Investor Relations Beijing: Tel: (8610) 64990060 Fax: (8610) 64990489 Email: ir@sinopec.com.cn Hong Kong: Tel: (852) 28242638Fax: (852) 28243669 Email: ir@sinopechk.com New York: Tel: (212) 759 5085 Fax: (212) 759 6882 Email: fangzq@sinopecusa.com Media Relations Tel: (8610) 64990092 Fax: (8610) 64990093 Email: media@sinopec.com.cn