China Petroleum & Chemical Corporation 2002 First Half Results Announcement

1. China Petroleum & Chemical Corporation2002 First Half Results Announcement August 19, 2002 Hong Kong

2. Agenda • Market Overview and Performance Highlights • Review of Operations • 2H 2002 Outlook

3. Market Overview and Performance Highlights

4. Market Overview I • Robust economic growth in China, GDP growth of 7.8% • Domestic consumption of refined products increased by 2.72% • Significant growth in domestic chemicals demand, consumption increased by 14.5% • Crude oil, refined product and chemical prices have been bottomed out in January and February; recovery began in March • WTO: crude oil tariff decreased from 16 RMB/ton to zero, gasoline tariff decreased from 9% to 5%, major chemicals tariff decreased by 3.7% on average

5. 750 700 650 600 550 500 PTA 450 LDPE Film Grade 400 PP Fibre Grade PET Fibre Grade 350 300 2001.01 2001.04 2001.07 2001.10 2002.01 2001.04 Market Overview II International Crude Oil Prices (US$ / bbl) SE Asia Chemical Product Prices Gasoline #90, Diesel #0 - Ex-Refinery Prices (RMB / tonne) (US$ / tonne)

6. Operating Performance — Maintain StrongProfitability Amid Adverse Market Environment EBIT Analysis (RMB Bn) 16.46 Tariff reduction 10.71 1.3 Q2 Decline in Crude Price 0.47 Others CompressedRefining Margin No Employee Reduction Expenses CostReduction Q2 Increasein High Value-added Products Decline in Chemical Price Improved Market Environment Expansionin Retailand Direct Sale Increase in DD&A, Social Welfare, etc Q1 Q1 1H2001 1H2002

7. 1H 01 Q1 02 Q2 02 1H 02 Change (%) Operating Performance — Grow Volume 65.91 66.56 Crude Oil Production (MM bbls) 131.73 132.43 0.53 41.8 46.0 Natural Gas Production (bcf) 71.1 87.8 23.5 23.94 27.00 Crude Oil Processed (MM tonnes) 51.94 50.94 -1.9 74.5 82.9 Refining Utilization Rate (%) 80.4 79.4 -100bps 17.34 16.73 Domestic Sales of Refined Products (MM tonnes) 33.67 34.07 1.2 7.94 8.92 Including: Retail (MM tonnes) 14.23 16.86 18.5 662 583 Ethylene Production (1,000tonnes) 1,245 1,146 8.7

8. Change (%) Q1 02 Q2 02 1H 01 1H 02 Operating Performance —Financial Highlights (RMB Bn) 66.00 80.20 Revenue -11.8 165.82 146.20 7.52 14.53 EBITDA -18.0 26.90 22.05 1.61 9.10 EBIT -35.0 16.46 10.71 0.54 4.89 Net Profits -45.6 9.98 5.43 0.006 0.057 EPS (RMB) -47.1 0.119 0.063 • NA NA DPS (RMB) NA NA 0.02

9. Change (%) Change (%) 1H 02 1H 01 1H 02 FY 01 Operating Performance —Capitalization and Cashflow (RMB Bn) 45.35 37.45 -17.4 Short-term Debts 30.88 33.24 7.6 Long-term Debts 147.67 145.57 -1.4 Shareholders’ Equity 28.06 27.25 -81bps Debt-to-Capital Ratio (%) 9.1* 9.7 0.6x EBITDA / Interest Coverage (x) 6.58 18.50 181.27 Net Cash from Operating Activities -12.46 -16.31 30.93 Net Cash used in Investing Activities 15.31 -4.08 -126.62 Net Cash from Financing Activities 29.04 19.14** -34 Net Cash & Cash Equivalents - Ending Balance Notes: *1H 2001 **Decreased by 8.9% from 2001 year-end

10. Review of Operations

11. Change (%) 1H 02 1H 01 E&P — Continued Production Growth in Oil & Gas New Proved Oil & Gas Reserves (MM boe) 217.23 213.57 -1.68 3,844 3,877 0.86 Period End Proved Oil & Gas Reserves (MM boe) 8.66 21.66 150 New Crude Oil Production Capacity (MM boe) 3.53 12.36 250 New Natural Gas Production Capacity (bcf) 131.73 132.43 0.53 Crude Oil Production (MM bbls) 71.10 87.80 23.50 Natural Gas Production (bcf) Cash Operating Cost (US$ / bbl) 6.19 6.00 -3.07

12. E&P — Segment Performance Crude Oil and Natural Gas Realized Price E&P Segment EBIT (RMB MM) Crude oil price(US$ / bbl) Natural gas price(US$ / ’000 cf.)

13. Change (%) 1H 02 1H 01 Refining — Production Adjustments in Line with Market Crude Oil Processed (1,000 bbl / day) -1.9 2,109 2,069 Refining Utilization Rate (%) -100bps 80.4 79.4 Gasoline Production (MM tonnes) -5.2 9.7 9.2 Diesel Production (MM tonnes) 1.1 18.6 18.8 Kerosene Production (MM tonnes) 2.7 2.26 2.32 Chemical Feedstock Production (MM tonnes) 14.4 6.7 7.6 Light Stream Yield (%) 253bps 70.58 73.11 Refining Yield (%) 58bps 91.70 92.28 Cash Operating Cost (US$ / bbl) -2.4 2.07 2.02

14. Refining — Segment Performance Refining Segment EBIT Refining Margins / Cash Operating Cost (RMB MM) (US$ / bbl)

15. Change (%) 1H 02 1H 01 Marketing — Expanding Marketing Network and Retail Volume Domestic Sales of Refined Products (MM tonnes) 33.68 34.07 1.2 Retail (MM tonnes) 14.23 16.86 18.5 Distribution (MM tonnes) 5.48 6.18 12.8 Share in Principal Retail Markets (%) 63 67 400bps Owned or Operated Gas Stations (Unit) 23,565 24,256 2.9 Franchised Gas Stations (Unit) 4,184 3,233 -22.7 Annual Throughput Per Station (tonne / station) 1,394 1,506 8.0 Cash Operating Cost (RMB / tonne) 166 161 -3.0

16. Marketing — Segment Performance Gasoline #90 Retail Guidance Price (RMB / tonne) Marketing Segment EBIT Analysis(RMB MM) Diesel #0 Retail Guidance Price (RMB / tonne)

17. Change (%) 1H 02 1H 01 Chemicals — Production Adjustments in Line with Market (1,000 tonne) Ethylene 1,146 1,245 8.7 Synthetic Resins 1,678 1,838 9.5 201 217 7.9 Synthetic Rubbers 1,844 1,895 2.8 Monomers & Polymers for Synthetic Fibers 493 568 15.2 Synthetic Fibers 41% 47% 600bps % of Performance Compound in Synthetic Resins % of Differential Fibers in Synthetic Fibers 33% 34% 100 bps B-2-B Sales (RMB Bn) 7.40 8.21 10.9 Ethylene Cash Operating Cost (US$ / tonne) 159.9 147.7 -7.6

18. Chemicals — Segment Performance Domestic Chemical Prices Chemicals Segment EBIT (RMB / tonne) (RMB MM)

19. Cost cutting in raw material procurement e.g. crude oil Reduce energy and material consumption Optimize resources allocation and logistics Efficiency gained from headcount reduction last year Cost Cutting 2002 Interim Actual Cost Cutting RMB 1,259MM (RMB MM) E&P 287 Refining 399 Chemicals 242 Marketing 331

20. E & P – RMB 9,502MM,increase new reserves and production Refining – RMB 2,660MM,improve quality of refined product Marketing – RMB 3,477MM, new-build and upgrade existing retail stations, storage and transport facilities Chemicals – RMB 4,016MM, additional production capacity, e.g. ethylene expansion RMB 19.9 Bn Prudent Investment to Enhance Return 1H 2002 Capex Allocation

21. Feasibility study for Fujian integrated petrochemical project submitted for government approval • Dongting coal gasification JV established; project commenced construction • East China Sea gas field ODP completed; ongoing negotiation JV contract • BASF-Yangzi ethylene project commenced construction, expected completion in 2004 • Shanghai Seco ethylene project commenced construction, expected completion in 2005 • ZRCC & bp LPG JV feasibility study submitted for government approval • Established PCITC with PCCW Smooth Progress on JV Projects Retail JVs on track

22. Information Technology ContinuousEnhancement Comprehensive Enterprise Resources Planning System Apply Modern IT System to Enhance Performance of Traditional Businesses Financial Mgmt.System Materials ProcurementB-2-B Refined Products Sales System Chemicals Marketing B-2-B CoreDevelopmentProjects Cost ControlSystem Database PerformanceReview System OngoingDevelopment Optimizations Crude Oil Refining Products Flow ERP

23. 2H 2002 Outlook

24. 2002 Market Outlook • Global economic outlook remains uncertain, but China’s economy will maintain strong growth momentum • International crude oil price remains at a relatively high level • Refining margin remains stable at current level • Chemical prices rebound in second half as the industry has bottomed out in the chemical cycle • Government continues to promote healthy competition in refined products market leading to a better operational environment • China’s accession to WTO will create new competitive pressure in the short term

25. E&P 2H 02 Plan： • Crude Oil Production 136MM bbl • Natural gas production 88.3bcf Growth from 1H (%) 1.6 0.6 Zhongyuan Oil Field Jungel Basin Ordos Basin ShengliOil Field Tarim Basin East China Sea Oil & Gas Field Sichuan Basin South China Sea

26. Refining • Optimize resources and reduce crude procurement cost • Optimize products slate, increase chemical feedstock products • Improve refining utilization rate through increasing external raw materials processing and expanding refining products export • Increase light stream and refining yield • Strengthening marketing efforts on other refined products • Accelerate construction of Ningbo-Shanghai-Nanjing crude pipeline facilities 2H 02 Plan： • Crude oil processing 53.1MM tonnes • Light stream yield 73.5% • Refining yield 92.5% Growth from 1H 02 (%) 4.2 40bps 20bps

27. Marketing • Improve coordination and cooperation with market players to create a healthy market and stabilize product prices • Increase market share by optimizing sales structure and expanding market • Develop network in highways, marine and rural areas • JV with Shell, bp, ExxonMobil in gas stations 2H 02 Plan： • Domestic Sales of Refined Products 35 MM tonnes - retail 17.5MM tonnes - distribution 6.6MM tonnes • Throughput Per Station 1,530 tonnes / year Growth from 1H 02 (%) 2.7 3.8 6.8 1.6

28. 1H 02 Actual 2H 02 Plan Growth (%) Chemicals (Unit 1,000 tonnes) 1,335 1,245 Ethylene 7.2 2,122 1,838 Synthetic Resins 15.5 233 217 Synthetic Rubbers 7.4 1,915 1,895 Monomers & Polymers for Synthetic Fibers 1.1 569 568 Synthetic Fibers 0.2 Sales-to-Production Ratio 99.6% 100.0% 40bps

29. Conclusion • Robust economic growth in China; rationalize environment in refined products market, improve operating environment • Grow production volume in oil and gas, refining and chemical products • Flexible operating strategies to reduce cost and improve efficiency • Prudent investment - adjust investment structure and improve return; maintain a healthy financial structure • Strengthen corporate governance; maintain a relatively stable dividends payout Generate Attractive Investor Return

30. For Further Information http://www.Sinopec.com Investor Relations Tel: (8610) 64990060 Fax: (8610) 64990067 Email: ir@Sinopec.com Media Inquiries Tel: (8610) 64990064 Fax: (8610) 64990093 Email: media@Sinopec.com