1 March 31, 2004 Hong Kong China Petroleum & Chemical Corporation Results for the Year Ended December 31, 2003

2 Forward Looking Statement 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 proved 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 2003 Performance Highlights and Achievements from Continued Reform and Development 2003 Operating Results 2004 Outlook

Performance Highlights and Achievements from Continued Reform and Development

5 Significant Profit Growth through Continued Reform and Restructuring EBIT Analysis 2002 Refining Profit Growth Chemicals Profit Growth Impairment Losses of Fixed Assets E&P Profit Growth Marketing Profit Growth Asset Disposal Severance Cost 2003 Headquarters & Others Profit Growth in business segments = EBIT of 2003 before deducting asset disposal, impairment losses of fixed assets and severance cost – EBIT of 2002 Unit: RMB billion

6 Solid Financial Performance (RMB in billion) Revenue EBITDA EBIT Net Profit Short-term Debt Long-term Debt Shareholders’ Equity Cash & Cash Equivalent - Ending Balance Cash from Operating Activities EPS (RMB) DPS (RMB) /2003 yoy (%) Segmental EBIT Performance RMB bn

7 Higher Investment Return and Improved Capital Structure Note: Data of 2002 and onwards include Maoming Ethylene, Xi’an Petrochemical and Tahe Petrochemical ROCE % ROCE Debt / Total Capital % EBITDA Interest Coverage Debt / Total Capital and EBITDA Interest Coverage

8 Improved Corporate Governance Elected the second session of Board of Directors and Supervisory Committee Revised Articles of Association and other documents to meet regulatory requirements of the four listing venues and reflect our commitment to strong corporate responsibility and credibility Streamlined decision making process and fully leveraged the roles of the independent directors and the three committees (Strategic, Audit and Compensation) under the Board of Directors Further enhanced internal control procedures Improved transparency through timely, accurate and complete disclosure –Awarded Best Corporate Governance and Best IR Awards, by Euromoney and FinanceAsia, etc.

9 Continued in-depth Corporate Reform and Restructuring Further reform in compensation system –Introduced market-rate-based practice –Improved efficiency through further headcount reduction of 21,000 in 2003 Specialized marketing system reform –Established acrylic fiber sales company

10 Optimized Asset Structure Continued restructuring to strengthen core business –Acquisition of Maoming Ethylene –Acquisition of Xi’an Petrochemical and Tahe Petrochemical to streamline integrated value chain Disposal of underperforming assets

11 Stable Dividend Payout RMB in bnRMB cents / Share Note: Data of 2002 and onwards include Maoming Ethylene, Xi’an Petrochemical and Tahe Petrochemical

Operating Results

Market Environment Robust economic growth in China with GDP growth rate of 9.1% –Domestic consumption of refined products increased by 7.22% –Domestic consumption of chemicals increased by 9.65% International crude oil price fluctuated at a relatively high level Domestic demands for refined products and chemicals soared after a depression early in the year due to SARS

14 E&P — Continued Growth in Oil & Gas Production /2002 Change (%) Crude Oil Production (mm bbls) Natural Gas Production (bcf) Newly Added Proved Reserves of Crude Oil (mm bbls) Newly Added Proved Reserves of Natural Gas (bcf) ,358.9 Year End Proved Oil & Gas Reserves (mm boe) 3,796.03,875.03, Lifting Cost (USD/bbl)

15 E&P – Segment Performance USD/bbl International Crude Oil PriceEBIT of E&P Segment USD/bblUSD/mcf Crude Oil and Natural Gas Realized Price RMB mm

16 Refining – Strong Demand Growth and Improved Product Mix Refining Yield (%) Light Stream Yield (%) Kerosene Production (mm tonnes) Chemical Feedstock Production (mm tonnes) Diesel Production (mm tonnes) Gasoline Production (mm tonnes) Sour Crude Oil Processed (mm tonnes) Refining Utilization Rate (%) Crude Oil Processed (mm tonnes) /2002 Change (%) 850bps 10bps 58bps Note: Above figures exclude Xi’an Petrochemical and Tahe Petrochemical

17 Refining — Segment Performance Note: Data of 2002 and onwards include Xi’an Petrochemical and Tahe Petrochemical Refining Margin / Cash Operating CostRefining Segment EBIT USD/bblRMB MM

18 Marketing — Optimized Marketing Network, Expanded Retail and Distribution Annual Average Throughput Per Station (tonne/station) Franchised Gas Stations Owned or Operated Gas Stations Total Number of Gas Stations (Unit) Distribution (mm tonnes) Retail (mm tonnes) Domestic Sales of Refined Products (mm tonnes) 1,473 4,184 24,062 28, ,560 4,127 24,000 28, ,686 5,736 24,506 30, /2002 Changes (%)

19 Marketing – Segment Performance RMB/Tonne Marketing Cash Operating Cost Marketing Segment EBIT RMB MM RON 90# Gasoline Guidance Price RMB/Tonne 0# Diesel Guidance Price RMB/Tonne

20 Urea Incl. Differential Fiber Incl. Performance Compound Synthetic Fibers Monomers & Polymers for Synthetic Fibers Synthetic Rubbers Synthetic Resins Ethylene Unit: 1,000 tonnes 402 1,847 1,153 3, ,005 2, , ,280 4, ,691 3,169 2, , /2002 Changes (%) Chemicals — Full Capacity to Meet Market Demand Note: The above figures exclude Maoming Ethylene 326 1,332 1,028 3, ,204 2, ,342

21 Chemicals – Segment Performance USD/tonne Note: Data of 2002 and onwards include acquisition of Maoming Ethylene Chemicals Segment EBIT (RMB MM) Chemicals Price Spread (1990 ~ Feb.2004) USD/tonne Ethylene Cash Operating Costs

22 Cost Reduction Cost Reduction in 2003 was RMB bn (RMB mm)

23 Optimized Investment Focus and Asset Structure E&P – RMB20.63 bn to increase production and rationalize reserve profile Refining – RMB9.73 bn to complete a number of upgrading and expansion projects and increase clean fuel capacity. Ningbo- Shanghai-Nanjing crude oil pipeline will commence operation soon Marketing – RMB6.82 bn to acquire, construct and revamp gas stations and storage and transport facilities; construction of southwest refined oil pipeline in progress Chemicals – RMB7.35 bn to upgrade existing ethylene and urea feedstock coal gasification projects Corporate and others – RMB520 mm for information system, etc 2003 Capex: RMB45.05 bn (RMB bn) Additional RMB4.2 bn invested in Secco and other JV projects Capex in the Past 3 Years

24 Achievements in R&D and Information System Successfully developed upstream exploration and development technologies such as exploration of hidden oil and gas reserves Developed a number of key refining and chemical technologies, including the 2nd generation loop type polypropylene packaged technologies Gasoline products fully complied with new specifications through application of self developed technologies Major breakthrough in ERP deployment

25 Smooth Progress in JV Projects East China Sea natural gas project with CNOOC, Shell and Unocal officially launched Ethylene projects with BASF in Nanjing and with BP in Shanghai are under construction, expected completion in 1H 2005 Coal gasification project with Shell in Hunan is under construction, expected completion in 2005 Feasibility study of Fujian integrated petrochemical project with Exxonmobil and Aramco was approved Feasibility study of refined products retail JV with Shell in Jiangsu was approved Feasibility study of retail cooperation project was submitted for approval Biyang (Ningbo) LPG Co., Ltd. (a JV between ZRCC and BP) established

Outlook

Market Analysis Opportunities –Chinese economy is expected to maintain sustainable growth with GDP growth rate of around 7%; consumption of refined products and chemicals is expected to grow by more than 5% and 8.6%, respectively –Crude oil price is expected to maintain at relatively high level –Refining margin continues to stay healthy –Chemical business is entering an up-cycle Challenges –Increasing competition as interim protective policies are being phased out after China’s accession to the WTO

Production Plan E 2004E/2003 Changes (%) Crude Oil Production (mmbls) Natural Gas Production (bcf) Refined Oil Processed (mm tonnes) Domestic Sales of Refined oil (mm tonnes) Retail (mm tonnes) Ethylene Production (1,000 tonnes)3,1693,

Capex Plan Meanwhile, accelerate the construction of JV projects such as BASF-Yangzi and Secco Adjust oil and gas reserve profile, increase reserves and production, and improve reserve profile among different categories Accelerate upgrading and expansion of refineries in the coastal regions, improve product mix and leverage synergies between refining and chemicals Construct and acquire gas stations in strategic locations in city centers and along new expressways Focus on core business and accelerate structural adjustment and technical upgrade Establish a modern logistics system 2004 Capex Plan: RMB50.2 bn Unit: RMB bn

Cost Reduction Plan Total: RMB 2.5 bn RMB mm

31 Conclusion Healthy and stable economic growth in China provides a favorable environment for Sinopec’s development Integrated business operations mitigate risks associated with industry cycles Continue to strengthen our leading position in domestic refined product market Refining & chemical businesses entering an up-cycle Continue to restructure and reform, rationalize operation structure, improve management and asset efficiency Maintain sound corporate governance and stable dividend payout

32 For Further Information Investor Relations Beijing:Tel: (8610) Fax: (8610) Hong Kong:Tel: (852) Fax: (852) New York:Tel: (212) Fax: (212) Media Relations Tel: (8610) Fax: (8610)