2. August 28, 2001 Hong Kong China Petroleum & Chemical Corporation 2001 Interim Results Announcement

3. 2 Agenda  Market Overview and Summary of Results  Review of Operations  Review of Financial Performance  2H2001 Outlook

4. Market Overview and Summary of Results

5. 4  Consistent growth in Chinese Economy  Domestic consumption of refined products increased by 3.59%  Robust growth in domestic chemicals demand, Chemicals consumption(ethylene equivalent) increased by 7.2%  Relatively high crude oil price  Asian refining margins remain low  Chemicals price under pressure globally Market Overview

6. 5 Utilization rate of refineries (%) Oil & gas production (MM boe) 129.69130.62 80.080.4 0.72% 0.4 Ethylene production (10,000 MT) 107.8114.66.31% Including: Retail (10,000 MT) 1H 20001H 2001Change Gross sales of refined oil (10,000 MT) 1,42398045.20% 3,3673,2483.66% Crude oil processed (10,000 bbl/day) 209.40210.900.72% Summary of Operations Note: Crude oil and natural gas production do not include production from National Star

7. 6 1H 20001H 2001Change Operating Expenses134,748148,44810.17% EBITDA25,89624,2286.9% Operating Revenues 149,367164,30710.0% EBIT 14,61915,8598.5% Net Profit 7,5139,58027.5% (RMB MM) Summary of Financial Performance

8. Review of Operations

9. 8 New proved crude reserves (MMbbls) Consolidated lapse rate (%) Production of crude oil (MMbbls) Production of natural gas (bcf) 122.92123.23 40.644.4 0.25% 9.36% 136.0142.64.85% 3.523.33-0.19 1H 20001H 2001Change E & P Note: Crude oil and natural gas production exclude production from National Star

10. 9 Refining Crude oil processed (10,000 bbl/day) 209.40210.900.72% Including: Sour crude processed (10,000 bbl/day) 28.3539.6739.93% Capacity utilization (%) 80.080.40.4 Yield for light stream (%) 70.170.580.48 Refining yield (%) 91.7091.99-0.29 Refining margins (US$/bbl)2.633.671.04 1H 20001H 2001Change

11. 10 1H 20001H 2001Change Gross sales of refined products3,3673,2483.66% (10,000 MT) Marketing – Expanding Retail Network - Retail1,42398045.2% - Wholesale 1,3962,268-38.45% - Distribution 548N/A Total Amount of gas stations 20,527 17,537 27,749 23,565 35.2% 34.4% - Franchised 2,9904,18439.9% Retail market share in principal market66%56%10 pnt. - Owned or operated

12. 11 Differential Fiber (10,000 MT) Performance Synthetic Resin (10,000 MT) Ethylene production 107.83114.606.3% Synthetic resin 146.01167.7714.9% Synthetic rubber 15.0620.0733.3% Synthetic monomers & polymers 193.72184.35-4.8% N/A -2% 5% -11% Synthetic fiber 52.4549.31-6.0%-7% 10.7% 2.6% (10,000 MT) Chemicals - Responding to Market 1H 20001H 2001Change Price 

13. 12 Cost Reduction & Efficiency Improvement Crude oil lifting cost (US$/bbl) 6.63 Refining cash operating cost (US$/bbl) 2.07 Marketing cash operating cost (RMB/ton) 166 Ethylene cash operating cost (US$/ton) 159.8 0.63 0.19 8.0 23.4* 7.26 2.26 174 - 1H 2000 6.63 2.14 181 183.2 20001H 2001Reduce * : Change in Ethylene cash operating cost compared with FY2000 figure Cost cutting 2001E 1H 2001 actual Chemical 522 490 Marketing 285 610 Total 1382 2190 E & P 190 450 Refining 385 640 Million RMB

14. 13 Capital Discipline 2001 Capex Plan Oil Field 31% Marketing 26% Chemicals 26% Refining 17% Marketing Chemicals Total E&P Refining 1H2001 Actual Capex 7,900 4,200 20,700 5,600 2,800 RMB 40.76 billion (RMB MM) Others 200

15. 14  On August 8, 2001, Sinopec commenced trading in the Shanghai Stock Exchange Size: 2,800,000,000 shares Offering Price: RMB 4.22 per share  Use of Proceeds ： Acquire National Star to strengthen upstream operations Invest in Southwest refined products pipeline and Ningbo- Shanghai-Nanjing crude oil pipeline to reduce logistics costs and expand market share Successful A Share Offering Fund raised: RMB 11.816 Bn

16. Review of Financial Performance

17. 16 Earnings Continue to Grow (RMB MM) 1H 20001H 2001Change EBITDA 24,22825,8966.9% EBIT 14,61915,8598.5% Net Profit 7,5139,58027.5% EPS 0.11 0.0% Revenue and other operating income 149,367164,30710.0%

18. 17 Stable Cash Flow (RMBMM ) 1H '001H '01 Net cashflow from operating activities 6,61210,509 Change -3,897 Net cashflow from investment activities -12,286-14,6202,334 Cash & cash equivalents – net change 9,2254,2554,970 Net cashflow from financing activities 14,8998,3666,533 Cash, cash equivalents and time deposit 41,13439,959-1,175 Note: Before proceeds from A-share listing 2000-12-312001-6-30Change

19. 18 Healthy Balance Sheet (RMB MM) 1H 20001H 2001 Total Capitalization 280,191298,006 Debt to equity ratio 32.75%35.78% Change 17,815 3 pnt. Total Assets 347,409373,78626,377 +25% Total Debt 91,777106,66214,885

20. 19 Strength of Integration (RMB MM) Operating Profits Marketing Chemicals Total E&P Refining Corporate & others 1.96 0.20 4.44 10.54 2.87 - 1,938 3,155 14,619 11,055 -1,571 42 1H2000 974 186 15,859 11,570 2,776 353 1H2001 EBIT (RMB MM)ROCE Note: ROCE = 1H ATOI / Total Capital Employed %

21. 2H 2001 Outlook

22. 21  Staggering global economy while stable growth in Chinese economy  Chinese government continues to improve market order  Since May 2001, new gas stations can only be built by either Sinopec or PetroChina  The two Companies will coordinate to maintain market equilibrium, and ensure stable oil price  International crude oil price stays at relatively high level  Low refining margin in Asian market, inverted prices in Singapore from June to early August  Chemical industry still in cycle low Market Environment - Analysis & Comments

23. 22  Increase crude oil production appropriately to take advantage of the high oil price window  Annual planned production of 267.7 MM bbl of crude oil and 148.3 bcf of gas (incl. National Star), 8.2% and 85.8% increase respectively.  Add RMB1.5 bn to E & P and explore replacement resources  Lower operating costs by applying new technologies E & P

24. 23 2001E Lifting Cost2001E Reserves 2001E Crude Oil Production (MM bbl) (bcf) Acquisition of National Star 2001E Gas Production (mm boe)(US$/boe) -4.4% +51 % +8.6 % +24.2%

25. 24  Optimize production to meet market demand, annual crude oil processing volume roughly remains 2000 level  Optimize the material flow of the crude resources, reduce the purchase cost and lower the crude inventory level.  Further reduce the material and energy consumption. Target annual refining yield at 92.3%, light yield at 71.6%, and 2H 2001 diesel/gasoline ratio at 2.13 Refining

26. 25  Enhance network infrastructure, expand the market share  Increase retail and distribution volume. Projected annual sales of 70 MM MT incl. 30 MM MT of retail and 10 MM MT of distribution  Lower inventory level to 5.5 MM MT at year end.  Reduce cost  Optimize resource allocation to reduce distribution cost  Flatten managerial hierarchy to lower management and administrative costs  Regulate the market order Marketing

27. 26  Ensure high utilization of efficient production facilities, 2.2 MM MT of ethylene production  Yanhua Ethylene plants commence production in Oct.  Enhance product quality, increase the ratio of high value added products, percentage of performance compound at 45%, differential fiber at 30%.  Forge marketing, direct sales account for 58%. Develop B2B e- commerce and ensure the E-trading volume of RMB 15 bn  Strengthen management to reduce cost and enhance competitiveness. Reduce Ethylene cash operating cost to USD155/tone Chemicals

28. 27 Conclusion  Improving market order  Promote rationalization in pricing mechanism  Stable growth in oil & gas production  Operating strategies in line with market conditions  Reduce costs  Increase sales volume  Lower inventory level Generate Attractive Return to Investors

29. 28 Investor Relations Tel: (8610) 64990060 Fax: (8610) 64990067 Email: ir@Sinopec.com Media Inquiries Tel: (8610) 64990064 Fax: (8610) 64990093 Email: media@Sinopec.com http://www.Sinopec.com For Further Information