March 24

Sinopec releases 2023 annual performance report

✧按照国际财务报告准则，公司实现operating income为人民币3.21万亿元；operating income868.28亿元，同比增长14.5%；** 本公司股东应占利润**为人民币583.10亿元；earnings per share人民币0.487元。

✧按照中国企业会计准则，Net profit attributable to shareholders of the parent company为人民币604.63亿元；basic earnings per share 为人民币0.505元。公司2023年实现operating cash flow人民币1614.75亿元，同比增长38.9%。
✧主要业务取得高质量经营成果，油气当量产量、原油加工量和境内成品油总经销量均创历史新高。公司oil and gas equivalent production7092万吨，同比增长3.1%； natural gas production379亿立方米，同比增长7.1%；processed crude oil2.58亿吨，同比增长6.3%；Total domestic refined oil sales volume 达1.88亿吨，同比增长15.8%；ethylene production1431.4万吨，同比增长6.5%。
✧公司注重股东回报，is expected派发现金股利人民币0.345元/股（含税），加上年内回购金额，合并计算后，Dividend distribution throughout the year 比例达到75%。公司2021年至2023年Cash dividend amount over three years人民币1409亿元，Amount of shares purchased back 人民币65亿元，合计总金额人民币1474亿元。

In 2023, in the face of complex operating situations and fierce market competition, Sinopec will implement high-quality development actions in depth, actively leverage its integrated advantages, comprehensively optimize production and operation organizations, and vigorously collaborate to create efficiency. Oil and gas equivalent output, crude oil processing volume, and domestic refined products The total distribution of oil and ethylene production reached record highs, and the cash flow from operating activities increased significantly year-on-year, achieving good operating results.

按照国际财务报告准则，The company achieved operating income of RMB 3.21 trillion throughout the year ，公司股东应占利润为人民币583.10亿元，每股盈利为人民币0.487元。公司注重股东回报，预计全年派发现金股利每股人民币0.345元（含税），加上年内回购金额，合并计算后， The annual dividend distribution ratio reaches 75%。

Upstream business increases reserves and increases production

New breakthroughs have been made in reducing costs and increasing efficiency

The company continues to strengthen high-quality exploration and has made major breakthroughs in exploration of coalbed methane in the Shunbei New Area of the Tarim Basin and deep coalbed methane in the Ordos Basin. The construction of the "Deep Earth Project" and the Shengli Jiyang Shale Oil National Demonstration Zone has been efficiently promoted, and the domestic oil and gas reserves have been replaced. The rate is 131%, oil and gas production has grown steadily, and the LNG business has achieved profitability throughout the year. The annual oil and gas equivalent output was 70.92 million tons, a year-on-year increase of 3.1%, of which domestic crude oil output was 35.44 million tons and natural gas output was 37.9 billion cubic meters, a year-on-year increase of 7.1%.

Optimization and adjustment of refining and chemical business

Responding to market changes at low cost

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Refining ，紧贴市场需求灵活调整加工负荷和产品结构，统筹“油转化”“油转特”节奏，增产成品油、润滑油脂等适销产品，优化出口节奏和结构，全年加工原油2.58亿吨，同比增长6.3%，创历史新高；生产成品油1.56亿吨，同比增长11.3%，其中煤油产量同比增长60.7%。

chemical industry ，以效益为导向，优化原料、装置、产品结构，强化成本管控，降低产业链成本，密切产销研用结合，稳步提升高附加值产品比例。全年乙烯产量1431万吨。积极开拓境内外市场，国际化经营量大幅增长，全年化工产品经营总量为8300万吨，同比增长1.7%。

Refined oil sales business gives full play to network advantages

Profitability levels are stable and rising

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The company seized the favorable opportunity of rapid rebound in market demand, gave full play to its integration advantages, vigorously expanded the market, expanded sales and increased efficiency, and transformed into a comprehensive energy service provider of "oil, gas, hydrogen and electricity services". Domestic refined oil sales reached a record high, and the operating quality and efficiency of non-oil business continued to improve. The total sales volume of refined oil products for the year was 239 million tons, a year-on-year increase of 15.6%, of which the total sales volume of domestic refined oil products was 188 million tons, a year-on-year increase of 15.8%. At the same time, it actively expands overseas business, explores domestic and overseas low-sulfur ship fuel markets, and becomes the world's second largest ship refueling company.

Continue to increase investment in scientific and technological research and development

Innovation-driven quality improvement, transformation and upgrading

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持续加大科技研发投入，着力突破关键核心技术，强化前沿基础研究，深化科技体制机制改革，一批关键核心技术取得重大进展，Patent quality ranks among the top among domestic companies 。全年申请境内外专利9601件，获得境内外专利授权5483件，专利质量持续国内领先。

Ma Yongsheng, chairman of Sinopec, said that in 2023, faced with a complex and severe market environment, the company overcame difficulties, comprehensively optimized production and operation organization, and achieved good business results. Looking forward to 2024, China's economy will continue to pick up and improve, and the energy and chemical industry will also accelerate its transformation. It is expected that domestic demand for natural gas, refined oil and chemical products will continue to grow, bringing new development opportunities to the company. Sinopec will pay more attention to value creation, cultivate new productivity, strive to promote transformation and upgrading, and expand the space for efficiency creation; strive to strengthen scientific and technological research and expand development momentum; and strive to strengthen ESG governance and promote sustainable development. The company will give full play to the advantages of integration, market, brand, technological and talent of the entire industry chain, and strive to build a world-class, move towards a world-leading position, and create greater value for shareholders and society.

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