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In the first half of the year, the Group continued to build its first-class innovation capabilities, steadfastly advanced the development of new-type industrialization in the engineering industries. During the Reporting Period, the Group has initiated specialised studies for topics relating to new-type industrialization, which cover 11 key aspects including high-end, green and intelligent, to promote integration of theoretical innovation and practical applications, so as to attract more investment in supporting the specialized studies and applications of new-type industrialization. The Group coordinated and promoted the innovative application of artificial intelligence and big data technologies in the engineering design field, and comprehensively carried out research on intelligent design (AI) special projects to accelerate the transformation of production methods. Based on the principle of developing new quality productive force and focusing on innovation and practicability, the Group led the application and conversion of "Integration and synergies of engineering projects", "standardised and lean design", "intelligent management on supply chain during the entire cycle of the project", "plant manufacturing and prefabrication installation" and other research outcomes of the engineering and construction projects, thereby facilitating overall improvement in efficiency and information technology of the engineering and construction projects. Leveraging the business model of contract energy management, the Group continued to promote the development of low-carbon services in the energy industry, develop its capability of equipping comprehensive energy-saving and carbon-reducing techniques, thereby making "Green and Clean" as its defining feature.

In the first half of the year, the Group deeply promoted the "integration and symbiosis" strategy and worked together with industry chain partners to build an industrial ecosystem. Firstly, the Group strived to create a new paradigm of deep industry-university-research integration driven by enterprise needs and deployed an "innovation chain" around the "industry chain" by jointly establishing the "Biomass Utilization Joint Research Center (High-value Utilization of Lignin)" with Guangdong University of Technology in accelerating the development and the industrial applications of the application techniques for biomass, and the "Low-carbon Joint Research Center" with Sun Yat-sen University and carrying out deep cooperation with research institutes such as Chinese Research Academy of Environmental Sciences, Shanghai Institute of Organic Chemistry, CAS, SINOPEC Beijing Research Institute of Chemical Industry and SINOPEC Research Institute of Petroleum Processing in multiple innovation fields. Secondly, the Group strived to build long-term integration and win-win partnership with domestic and foreign project owners by adopting the "going out" and "bringing in" approach to strengthen exchanges and deepen mutual trust with domestic and foreign project owners including Guoneng Group, China Coal Group, Shanmei Group, Yanchang Group, QazaqGaz, Saudi Aramco, SABIC and ADNOC and gain market first-mover advantage with more advanced and extensive preliminary and front-end services while promoting the advantages of the Group on industry chain, technology chain and engineering services in an all-round way. Thirdly, the Group strived to create an industrial environment that integrates and shares with industry peers to continuously expand "circle of friends" by promoting comprehensive strategic partnerships with international engineering companies represented by TR, Technip and Tecnimont, and strengthening deep cooperation in areas such as preliminary project development, global supply chain optimization and project execution. Fourthly, the Group strived to build an ecosystem of integrated development with global industrial chain partners by conducting high-level visits with major equipment and material suppliers such as Ansteel Group, Emerson, Yokogawa, Honeywell and KSB to deepen cooperation and create a globally competitive supply chain system.

During the first half of the year, the Group continued to explore the fusion of international experience and Chinese practice for ESG, thereby developing itself into a leading enterprise in terms of ESG. During the Reporting Period, the Group initiated a social responsibility brand project by holding public open days with the theme of "Everyone's Safety - Immersive Public Safety Experience Public Welfare Activities" and leveraging on the regular preparation and implementation of public safety experience public welfare activities at two safety simulation and practical training bases of the Group in South China and North China to create a social responsibility brand project of Sinopec Engineering Group. The Group was rewarded a "BB" rating for MSC ESG, which was the highest rating in the engineering industry in the PRC. Meanwhile, the Group was listed on the Sustainability Yearbook - S&P Global, as one of the two selected enterprises with its outstanding performance in the field of ESG among over 1,700 enterprises in 60 industries in the PRC.

Chairman of SEG, Mr. JIANG Dejun said: "Looking forward to the second half of the year, the global economic growth momentum is still under pressure. The supply and demand pressure on the domestic refining and chemical industry is high and the environment remains severe. In the face of challenges, there are new opportunities through comprehensive analysis. First, the demand for high-end transformation of industries in China is still increasing, and investment in large-scale new material projects is in the ascendant. Secondly, the energy industry is developing to seize widening opportunities on green and low carbon, green hydrogen and green ammonia, green alcohol and other new energy. Third, with the adjustment and optimization of China's energy industry structure, the new coal chemical industry is expected to open up a new wave of investments. Fourth, with the introduction of policies for the elimination and upgrading of old chemical equipment, the Company will thrive with its comprehensive integrated industry chain service capabilities on device dismantling, site restoration and resource utilization. Fifth, the overseas energy and chemical industry is entering a new height of opportunities. China's high-level opening up to foreign markets and the development needs of the global petrochemical industry provide the Company with a broader international business environment. In the second half of the year, the Company's board of directors will further strengthen strategic guidance and integrated planning, and continue to promote initiatives including "consolidating the advantages of traditional main businesses, continuing to promote technological innovation, leading the new industrialization of the industry, promoting the internationalization of operations, and achieving diversified value creation", leading the Company to strive for product excellence, outstanding brand, leading innovation, and modern governance to unswervingly becoming world-class enterprise. We believe that people around the world are urge for a good living environment through a cleaner and greener energy and chemical industry, which in turn provides stronger development momentum for global development. The company will give full play to its advantages in the integration of the complete industry chain, market advantages, brand advantages, technology advantages, and talent advantages. The Company will continue to promote its high-quality development, achieve effective improvement in quality and reasonable growth in quantity, and strive to deliver improvements on shareholder value, customer value, social value and employee value!"

Business Review and Highlights

Improved market development performance in terms of both quantity and quality

During the Reporting Period, the value of new contracts signed by the Group was RMB50.066 billion, representing an increase of 32.7% on a year-on-year basis.

During the Reporting Period, the value of new contracts signed by the Group in domestic market was approximately RMB33.113 billion, a year-on-year increase of 10.6%, maintaining its leading industry position in the domestic market. The Group signed a batch of engineering design contracts for high-end new materials projects, including CHN Energy Coal Chemicals, CNOOC Shell Huizhou Phase III Ethylene, CNOOC Shell Huizhou Polycarbonate, Yatong Chemical and Zhejiang Petrochemical, and a batch of EPC contracts for refining and chemical integration, refining renovation and upgrading as well as new materials. Representative contracts included the EPC contract for certain plants of SINOPEC SABIC Petrochemical Fujian Gulei Ethylene and Downstream Deep Processing Consortium Project (the "Mango Ethylene Project") with a total contract value of approximately RMB6.081 billion; the EPC contract for certain plants of North Huajin United Petrochemical Fine Chemical and Raw Material Engineering Project (the "Huajin Project") with a total contract value of approximately RMB5.807 billion; the EPC contracts for certain plants of Lianhong Gerun (Shandong) Integrated Project of New Energy Materials and Biodegradable Materials with a contract value of approximately RMB2.995 billion; and the EPC Contract of INEOS Sinopec Tianjin Nangang Ethylene and Downstream High-end New Materials Industry Cluster POE Plant (the "Tianjin Nangang POE Project") with a contract value of approximately RMB882 million.

During the Reporting Period, the value of new contracts signed by the Group in overseas market was approximately US$2.354 billion, a year-on-year increase of 117.8%, maintaining its strong development momentum. Representative new contracts include the EPC Contract for gas compression (GCP) of Saudi Aramco's Jafurah Gas Expansion Project Phase III (the "Saudi JafurahProject Phase III") with a contract value of approximately US$900 million; the construction contract for the electromechanical instrument section of the gas processing plant of the Jafurah Natural Gas Expansion Project Phase II (the "Saudi Jafurah Project Phase II") with a contract value of approximately US$161 million; the high-end front-end business in overseas market continued to grow with signing of FEED+PMC contract for Saudi Aramco's RAS TANURA Island Steam Treatment Facility (VHRT) Project and the contract for review of Saudi Aramco's Far East Fine Chemicals and Raw Materials Engineering Project Management Manual, etc.

During the Reporting Period, the Group signed 137 new contracts in the emerging fields such as new energy and new materials in domestic market with a total value of new contracts of approximately RMB7.406 billion, and the market layout in emerging fields achieved good results.

Steady progress in the construction of key projects

• Zhenhai Refining & Chemical Oil Refining and High-end Synthetic New Materials Project was in the peak stage of construction and installation with an overall completion percentage of over 90%.

• PetroChina JCEC Transformation and Upgrading Project was in the stage of construction and installation with an overall completion percentage of over 60%.

• Longkou LNG Project was in the peak stage of construction with an overall completion percentage of over 70%.

• Huajin Project was in the stage of civil construction with an overall completion percentage of over 20%.

• ExxonMobil Huizhou Ethylene Project was in smooth and steady progress, and was granted the "President's SSH&E Award" twice by the project owner.

• Saudi Riyas NGL Project was in the stage of detailed design with an overall completion percentage of less than 10%.

• Saudi Arabia AMIRAL Project was in the stage of civil construction with an overall completion percentage of approximately 30%.

• Algerian LNG/MTBE Project was in the stage of construction with an overall completion percentage of over 50%.

• Saudi Aramco's Crude Oil Pumping Station Upgrading and Improvement Project was in the peak stage of construction with an overall completion percentage of over 90%.

• ExxonMobil Singapore CRISP Integrated Project was in the stage of construction with an overall completion percentage of over 70%.

Technological innovation capability reaching new heights

During the Reporting Period, the Group made prominent achievements in research and development of science and technology. The Group signed various new technology development contracts with total contract amount of RMB551 million, a year-on-year increase of over 50%; and new technology licensing and technology conversion contracts with a total amount of RMB262 million, a year-on-year increase of over 30%.

During the Reporting Period, the Group filed 440 new patent applications, among which, 331 were invention patents, accounting for 75.2%; and 195 newly licensed patents, 102 of which were invention patents, accounting for 52.3%, and patent quality had been continuously optimized.

During the Reporting Period, the Group received a total of 20 science and technology progress awards in scientific and technical innovation and engineering construction fields at the provincial and above level, including the second prize of the National Scientific and Technological Progress Award for the "design, manufacturing and maintenance technology of long-life largescale ethylene cracking reactors", the first prize of the SINOPEC Science and Technology Progress Award for the "research and application of key technologies for long-term production safety in high acid gas fields", the second prize of the SINOPEC Technology Invention Award for the "development and application of technology for production of chemicals through catalytic cracking of crude oil (CCPP)"; two provincial and ministerial excellent design awards; and three provincial and ministerial excellent engineering awards.

During the Reporting Period, the Group continued to strengthen the top-level design of scientific and technological innovation work, and revised and released the "Guiding Opinions on the Company's External Technical Cooperation Agreements". By closely focusing on the Company's strategy and market demand, the Group steadily advanced key scientific research projects in respect of its engineering and technological innovation, making new progress in tackling key core technologies.

During the Reporting Period, the national project "Technology and Equipment for Producing Biogasoline and Biodiesel from Waste Straw" undertaken by f the Group, passed the inspection and acceptance of project completion. This project is an important project of the National Key R&D Program "Solid Waste Resource Utilization", focusing on key scientific and technological issues such as fluidized bed hydrogenation deoxygenation, production of flue gas purification agents from pyrolysis residues and scaling up of million-ton biogasoline and biodiesel production processes. The related achievements will further solve the problems of dispersed collection and extraction of waste biomass energy, pollution control and carbon dioxide reduction.

During the Reporting Period, the Group improved the "Key Technologies for Increasing Low Carbon Olefins and BTX Produced from Heavy Raw Materials" in respect of the RTC (Efficient Catalytic Cracking of Heavy Oil) plant to further reduce energy consumption. Such technology provides strong technical support for the transformation and upgrading of refining enterprises from traditional fuel refineries to chemical refineries and will also lay a solid foundation for the Group to expand market development and undertake engineering projects in this field.

During the Reporting Period, the first medical-grade 1,000-ton PGA (polyglycolic acid) new material pilot plant of Sinopec designed and constructed by the Group, the first 150,000 tons/year CHP method epoxy propane plant in China, the 12,000 tons/year EVOH resin industrial demonstration plant of Chuanwei, the 1,000-ton fluidized bed synthesis gas to olefin (GTO) pilot plant of Zhenhai Refining & Chemical and the application of high sulfur and high acid natural gas short process low-carbon purification technology had all achieved the milestone breakthrough goals.

Continuous improvement of new industrialization capacities

During the Reporting Period, the Group focused on developing new quality productive forces and building core competitiveness on innovation and practicality. In addition, the Group continuously advanced major new industrialization innovation projects such as integrated project management, lean design, intensive procurement, factory prefabrication, robot welding, factory digitization and intelligent operation and maintenance. Moreover, the Group deepened the application of new industrialization projects with "high-end, intelligent and green" as the core and took the Huajin Project as the carrier to fully research and leverage the valuable experience accumulated from projects such as Nangang Ethylene, Zhenhai POX and Singapore CRISP to strive to achieve significant innovation and breakthroughs. During the Reporting Period, the Group increased its efforts to explore and promote the application of standardization, automation, digitization and modular construction in engineering construction, and promoted the industrial application of intelligent equipment and technologies such as automatic welding and welding robots.

QHSE maintaining a good momentum

During the Reporting Period, the Group continuously improved its project QHSE control standards and the management system operated effectively. The Group comprehensively promoted the construction of the "three basics" work safety standardization team, strictly controlled the entry standards of subcontractors, carried out training and certification of three types of management personnel including team leaders and subcontractors and incorporated them into the requisite conditions for subcontractor qualification review for 2025. In addition, the Group implemented a long-term management model, continuously improved the awareness, skills and independent safety management level of on-site personnel and built a solid grassroots safety defense line. Moreover, the Group prepared green ecological design guidelines, strengthened energy and environmental source control of construction projects and promoted the energy conservation and environmental protection of construction projects. The Group also strengthened the integration and collaboration of design and construction, optimized construction methods and processes and accelerated the updating and iteration of construction equipment. The Group conducted comprehensive inspections of design quality and physical quality, strictly implemented risky contracting and hidden danger investigation and rectification work, strengthened process assessment and promoted the transformation of accident handling towards advance prevention.

During the Reporting Period, ExxonMobil Huizhou Ethylene Project, a project designed and engineered by the Group, was awarded the "President's Award for Safety of Global Project" by the owner in the second row. As of the end of the Reporting Period, the Company's cumulative safety labor hours were 176 million, and the quality, safe and environmental protection were stabilized and controlled with no quality and environmental accidents.

Continuously enhanced project management capabilities

During the Reporting Period, the Group had 1,330 on-going domestic and overseas projects with over 110,000 on-site employees. During the reporting period, the Group continued to carry out its on-hand projects in a quality manner, strengthened the entire process management of projects, ensure assessment on project milestones, strengthened the management of contract changes and process settlement, raised the level of control and designate personal in charge for projects that default risks exist, effectively prevented production and operation risks; continued to carry out specialised projects of design optimization; continued to promote fusion of integrated design and construction with working experience to enhance design and construction efficiency. With strengthened the cultivation of strategic subcontractors, the Group initiated the development of standardized "safety-oriented" team, among which team leaders from 16 teams and certain contractors attended trainings and obtained the certificates. A total of over 800 persons attending these trainings, resulting in effective improvement of the execution ability of subcontracting resources and project quality. The Group actively prepared for the establishment of low-cost operation centers and resource allocation centers for overseas regional projects, continuously improving its ability to localize human resources management for overseas projects. The Group organized projects for enhancement of overseas purchase management and initiated the development of the platform for management of overseas purchase resources.

Vigorously promoting the construction of talent team

During the Reporting Period, the Group deeply implemented the development strategy of "building a strong enterprise by relying on talents" and carried out talent work from a broader perspective and with greater efforts. The Group focused on selecting cadres for corresponding teams, highlighting the selection and appointment of capable individuals, strengthening the management of the entire chain and process of cadre selection, cultivation, management and appointment and continuously implementing the "Dunmiao Plan" to cultivate and train young talents resulting in continuous improvement of the capabilities of the cadre team; focused on team construction and talent recruitment, highlighting the leading role of innovation, continuously optimizing and refining the "talent introduction, cultivation and encouragement" measures, carrying out pilot work for the introduction of key talents from the general public, continuously improving the expert management system, perfecting job management methods

and strengthening the training and cultivation of technical and skilled talents at all levels and on-site management team leaders, resulting in continuous enhancement of the efficiency of talent innovation; and focused on deepening reform, improved the distribution method of total wages, fully implementing the term system and contractual management of management personnel at all levels to stimulate the high-quality development momentum of the Group.

Business Prospects

Looking forward to the second half of the year, the Group will focus on working arrangement to face challenges and capture opportunities, continue to enhance its core competitiveness, strengthen its layout in new business fields while strengthening and enlarging its traditional business, increase the pace of internationalization of its business, put more efforts in innovation, continue to enhance the green and low-carbon competitiveness of the whole industry chain, continuously improve its project fulfillment capability, and strive for better operating performance. The Group had set its target for market development set at the beginning of the year: RMB60 billion domestically and USD3 billion overseas. In the second half of the year, the Group will prioritize the following tasks:

Continue the effort of Market development. Domestically, the Group will consolidate the advantage in traditional markets, accelerate the cultivation of the most competitive distinctive products with core competitiveness, speed up technology sourcing, industrial application and market development in the fields of high-end new materials, clean coal utilization, green hydrogen, green ammonia and green methanol, and strengthen the advantages of the whole industry chain; pursue upgrading of large-scale equipment, energy saving and emission reduction, phase-out and renovation of old equipment, thereby maintain leading position in the market. Internationally, the Group will continuously expand the circle of friends with a more open mindset, consolidate anddeepen relationships with clients and partners; take the road of ecological and collaborative globalization, continue to expand the scale of overseas markets, and expand the proportion of international business income; promote faster globalization of its "technology+" high-end businesses, strive to extend to the front end of the business chain, focusing on markets in Middle East, Middle Asia and Africa; and strengthen the development of its green, low-carbon and new energy businesses; and promote localized operation and forge high quality international operation capability by promoting the negotiation of the seed projects under the "EPC Champion Program" with Saudi Aramco.

Project management. The Group will adhere to a customer-centric approach, strictly fulfill contracts and improve contract fulfillment capabilities to achieve joint enhancement of the value of shareholders, customers, society and employees; do a good job in the overall coordination, management and service support for project implementation, and in the overall implementation planning and personnel reserve for newly signed projects; strengthen overall project management and control, improve the management of schedule, revenue, cost plan and contract alteration, process settlement management to ensure the quality of effectiveness; accelerate the research progress and achievement transformation of various projects for "leading the new industrialization of the engineering construction industry", promote the research and development of intelligent plant workshop technology, promote the improvement of plant intelligent manufacturing capabilities, and deepen the application of advanced technology and equipment; and strengthen the ability to control international resources, promote the construction of overseas lowcost centers, and further improve its capability to execute overseas projects.

Risk control. The Group has initiated the construction of a major operational risk management platform, continuously strengthened legal risk prevention throughout the entire lifecycle of contracts, achieved risk control at the source with high-quality contracts and strictly guarded against financial, foreign exchange, tax, and credit risks. The Group will strengthen QHSE risk management, further promote the campaign of Annual Safety Management Enhancement, and comprehensively promote the development the "Safety-oriented team" from the training of team leaders. The Group will continue to focus on key indicators such as return on net assets and operating cash ratio to further solidify the profit foundation and enhance the profitability; continuously strengthen cost control through innovative technology, optimized design and lean management to improve the overall cost control level across all personnel, elements and processes.

Summary of Financial Data and Indicators Prepared in Accordance with International Financial Reporting Standards ("IFRS")

Unit: RMB'000

Unit: RMB'000

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This press release is issued by PRChina Limited on behalf of SINOPEC Engineering (Group) Co., Ltd.

About SINOPEC Engineering (Group) Co., Ltd.

The Group is a leading energy and chemical engineering company in the PRC with strong international competitiveness and can provide domestic and overseas clients with overall solutions for petrol refining, petrochemicals, aromatics, coal chemicals, inorganic chemicals, pharmaceutical chemicals, clean energy, storage and transportation facilities, environmental protection and energy saving, among other industry sectors. The Group is an integrated service provider for the whole industry chain and the whole life cycle in energy and chemical industry and can provide overall industry chain services including engineering consulting, technology licensing, project management contracting, financing assistance, EPC (engineering, procurement and construction) contracting, as well as design, procurement, construction and installation, lifting and transportation of large equipment, precommissioning and start-up.

After nearly 70 years of continuous development, the Group currently has an academician of the Chinese Academy of Sciences, three academicians of the Chinese Academy of Engineering and more than10,000 professionals. The Group has rich project management and implementation experience, and owns and cooperatively owns patents and know-how in core business areas. The Group has delivered on schedule hundreds of modern factories with enormous investment, complicated process, advanced technology and high quality to clients in more than 20 countries and regions around the world, established long-term and steady cooperative relationships with large energy and chemical enterprises at home and abroad, maintained an extensive and stable client base, and enjoys remarkable industrial influence and social reputation.

In the future, adhering to the development orientation of "Integrated Service Provider with Whole Industry Chain and Whole Life Cycle in Energy and Chemical Industry", the Group will base itself on the energy and chemical engineering construction industry, continuously broaden its business scope and extend its value chain. The Group take "Engineering Innovation" and "Value Creation" as the development engines and deepen the implementation of the six development strategies of "Value-Oriented, Innovation-Driven, Green & Clean, Talent-Based, Globalization-Targeted, Fusion & Symbiosis". The Group comprehensively improve the level of safe, efficient, green and lowcarbon service in the business chain, and fuel a new momentum in achieving the corporate vision of "building the world's leading technology-oriented engineering company".

Disclaimer

This press release includes "forward-looking statements". All statements, other than statements of historical facts that address activities, events or developments that the Group expects or anticipates will or may occur in the future (including but not limited to projections, targets, other estimates and business plans) are forward-looking statements. The Group'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 the price fluctuation, possible changes in actual demand, foreign exchange rate, market shares, competition, environmental risks, possible changes to laws, finance and regulations, conditions of the global economy and financial markets, political risks, possible delay of projects, government approval of projects, cost estimates and other factors beyond the Group's control. In addition, the Group makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements.

Investor and Media Enquiries:

SINOPEC Engineering (Group) Co., Ltd. - Office of the Board
Liu Jingjing /Zheng Zhexia
Tel: (86) 10 5673 0523 / (86) 10 5673 0525
Email: seg.ir@sinopec.com

PRChina Limited
David Shiu / Rachel Chen
Tel: (852) 2522 1838 / (852) 2522 1368
Fax: (852) 2521 9955
Email: seg@prchina.com.hk

File: [Press Release] SEG Announces 2024 Interim Results

SOURCE: SINOPEC Engineering (Group) Co., Ltd.

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